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Cotati receives Q1 financial update: general fund revenues down, enterprise funds stable
Summary
Staff reported unaudited first‑quarter financials (through Sept. 30, 2025): general fund revenues are down about 9% year‑over‑year (sales tax timing/softness); enterprise funds show mixed results with water costs up and sewer fund improving; cash and investments remain adequate.
The council received an unaudited first‑quarter financial update for fiscal year 2025–26. Angela Porter, director of administrative services, reported that general fund revenues are tracking below the prior year by about 9%, driven primarily by sales and other tax timing. Expenditures are front‑loaded this quarter because the city recorded prepaid contracts and insurance costs.
Porter said the city’s pooled cash and investments totaled nearly $15 million at Sept. 30 and remain sufficient to meet operational needs for the next six months. The water enterprise showed higher early expenditures largely due to emergency repairs and higher wholesale water costs; staff noted Sonoma Water’s wholesale rate increase came in higher than assumed in the rate study. Sewer fund revenues are improving, aided by rate adjustments and monthly billing.
Staff described timing differences in capital project and grant receipts and said they will continue to monitor sales tax trends and present updated forecasts at midyear. Council asked staff to consider outreach to support local businesses and to continue monitoring budget variances; staff said one major street project had already been delayed.
