Cotati posts unaudited FY2024‑25 results; council approves technical budget adjustments

Cotati — City staff presented unaudited financial results for the fiscal year ending June 30, 2025 and the council approved budget adjustments for two upcoming fiscal years.

Director of Administrative Services Angela Quarter said year‑end revenues and expenses were largely consistent with budget after accounting for timing of invoices and transfers related to capital projects. She reported general fund revenues slightly exceeded budgeted totals on an adjusted basis while enterprise funds showed higher aqueduct and wastewater treatment costs than anticipated.

Quarter noted the city’s cash and investments totaled about $18 million as of June 30, with a substantial portion in a liquid pooled investment and laddered treasury holdings earning approximately 4.4 percent. Staff recommended and council approved technical budget adjustments to reflect corrected FTE allocations and contract service costs; council adopted the adjustments 5‑0 with staff stating there was no fund balance impact.

Councilmembers discussed fiscal resilience indicators and whether assumptions (particularly water rates and purchased water costs) should be updated to reflect newly known costs; staff recommended tying indicator thresholds to the assumptions in the most recent rate study and returning with any recommended changes.

Next steps: Staff will proceed with the financial audit and post updated schedules and will continue to monitor water and wastewater cost trends as the new rates and the rate study are implemented and reported.