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Santa Rosa outlines multi-year budget plan, schedules May budget study sessions
Summary
City leaders said one-time reserves give the city a roughly two-year runway to restructure finances; officials announced an April update and May 6–7 budget study sessions and urged residents to follow the process.
Santa Rosa city leaders on a virtual town-hall said the city is facing flat revenues and rising costs, but officials described a multi-year plan that relies on one-time reserves and a two-year runway to restructure operations.
City Manager Markisha Smith and Mayor (name not specified) told viewers that sales and property tax growth has slowed from the high levels seen during and immediately after the pandemic and that those lower ongoing revenues, combined with higher costs, have produced a forecasted budget gap. "For the city of Santa Rosa, as with most cities in California, our revenues have been flat in recent years," the mayor said.
The city plans to release more details about the restructuring on April 15 and will hold a two-day budget study session on May 6–7 to evaluate the budget plan for the current and next fiscal year. Officials said they will hold frequent council budget sessions afterward to track progress and make adjustments.
City leaders emphasized that prior councils and staff built reserves and one‑time funds that provide a runway to implement changes more gradually. "Thankfully, due to the foresight of previous councils, we have some one-time funds, and we've got a bit of a runway that allow the city to take action over time to deal with this issue," the mayor said.
CFO Alan Holton said staff are monitoring federal grant risks and do not yet see cancellations but expect more vigilant auditing. "While we don't see anything that is an immediate threat, we haven't been noticed of cancellation or pulling back of funds," Holton said, adding the city is watching federal funding closely.
Officials urged residents to follow the budget process and attend upcoming sessions. The mayor said the city has a plan and a multi-pronged approach that includes restructuring, evaluating new revenue options, and prioritizing capital projects where possible.
Looking ahead, leaders said they will discuss potential revenue tools and structural changes — including pension stabilization funds and enhanced infrastructure financing districts — with the community in future meetings and that the city will attempt to preserve service levels while addressing the gap.
The city asked residents to review materials the staff will post and to follow the council’s meetings as the process proceeds.
