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County supervisor warns of budget pressures, grant legal fights and infrastructure costs during Cotati visit
Summary
Sonoma County Supervisor David Rabbit briefed the Cotati council on county budget risks, lawsuits over federal grant acceptance terms, rising insurance and IT costs, county facility purchases, and the Potter Valley water project during a May 27 presentation.
Sonoma County Supervisor David Rabbit told the Cotati City Council May 27 that county leaders face an unusually difficult budget year because of unpredictable federal and state funding, rising costs and several pending legal disputes that could delay grants.
Rabbit said the county had been notified of federal grant clawbacks and is part of litigation challenging new grant acceptance language the federal government and other entities have added to award documents. He said the county joined a King County, Washington‑led lawsuit about additional grant terms and a separate suit filed by San Francisco and Santa Clara counties, and that a temporary injunction could be sought to avoid losing funds tied to projects such as a roughly $5.4 million FAA grant.
“As it could be months before these things get straightened out,” Rabbit said, “undoubtedly the county will not receive funds for a variety of programs and projects going forward.” He told council the county relies substantially on state and federal funds (he cited roughly 38% federal in the county budget and about 24% state funds) and that the county’s no‑backfill policy will be tested.
Rabbit also discussed other budget pressures: cybersecurity and a transition to software‑as‑a‑service models that have increased department IT costs, and a rise in liability insurance prompting higher self‑insured retention (from $1 million to $2 million per occurrence). He recommended a “catastrophic road fund” to address sudden, high‑cost road failures that can exceed cash on hand.
On capital projects, Rabbit said the county recently purchased office buildings (3850 and 3880 Brickway) for approximately $32 million with about $15 million projected for tenant improvements to consolidate staff. He contrasted those costs with much higher quoted construction estimates for a new County Center building.
Rabbit also updated the council on regional transportation and water matters: SMART rail reaching Healdsburg in 2026; nearby roundabout projects at Old Redwood/Eli and Old Redwood/Railroad; and the Potter Valley project and a surrender application for PG&E, emphasizing that while outcomes remain uncertain, maintaining water flow through the diversion tunnel is critical for Russian River and Eel River water reliability.
Council members asked about roundabout costs, project prioritization, and how the Potter Valley diversion would be funded; Rabbit said operation costs would be picked up by water users and that grant funding remains in flux.
The council opened the presentation for public comment and members of the public asked about roundabout costs, county building plans and city finances; Rabbit responded to questions and said he would follow up on details where requested.
