Sonoma City presents balanced FY26 budget with narrow margin, council keeps reserves under close watch

City Manager David Keelan told the Sonoma City Council at a budget workshop that the proposed fiscal 2025–26 spending plan is balanced, with $28.8 million in proposed general-fund revenue and $28.7 million in proposed general-fund spending, producing a narrow $152,000 surplus.

The proposal comes amid rising personnel and utility costs, uncertain state and federal revenue flows and broadly flat tourism receipts. "This budget we're bringing to you today is balanced," Keelan said during the presentation. Finance Director Prathy outlined the economic assumptions behind the numbers and the major drivers on the expense side.

Why it matters: Sonoma’s operating budget is tightly balanced and relies on conservative revenue projections, the recently passed Measure T and careful use of reserves. Council and staff agreed the city should preserve reserve levels amid federal and state uncertainty and return with updated revenue and expense figures before final adoption.

What the budget shows - Proposed citywide revenue: $45.6 million; proposed general-fund revenue: $28.8 million. - Proposed general-fund expenditure: $28.7 million; projected…