Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Cotati FY2025–26 Q1: sales tax lags, cash and investments remain healthy
Summary
Finance staff presented unaudited first‑quarter results (period ending Sept. 30, 2025): general fund revenues were down about 9% year‑over‑year driven by weaker sales tax receipts; enterprise funds performed steadily though the city faces higher wholesale water charges; the city’s cash and investments totaled about $15 million.
The City of Cotati presented unaudited financial results for the first quarter of fiscal year 2025–26 (period ending Sept. 30). Angela Quarter, Director of Administrative Services, summarized the citywide snapshot and highlighted timing differences that affect first‑quarter comparisons.
Quarter highlights included:
• General fund revenues are approximately 9% below the same period last year, driven primarily by slower sales and other tax receipts. Quarter revenues represent roughly 8.8% of the annual budget, which staff said is consistent with seasonal timing for many major receipts. Quarter‑to‑date comparisons are limited by timing‑sensitive revenues such as property tax, which arrives later in the year.
• Water enterprise expenditures were higher in the quarter — driven by emergency repairs, insurance prepayments and an increase in Sonoma Water wholesale charges that were higher than the city’s rate study assumption (Sonoma Water’s increases were reported at about 15% vs. the 12% assumed in the city’s rate model).
• Sewer fund performance improved versus the prior year; revenues benefited from rate increases and monthly billing changes.
• The city’s cash and investments portfolio totaled about $15 million on Sept. 30 and earned about $165,000 in the quarter. Staff reported liquidity adequate to meet operations for the next six months and emphasized short‑term laddering and monitoring as interest rates evolve.
Quarterly fiscal resilience indicators included "yellow" watch flags for cash coverage and rolling 12‑month revenue to budget, driven mainly by timing and the sales tax variances. Staff said they had postponed a major street CIP because bids exceeded estimates and would reexamine projects on a case‑by‑case basis. The report is unaudited and staff will return with updated forecasts at midyear.
