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Cotati staff report midyear finances: revenues on track, small adjustments proposed
Summary
Finance staff told council midyear revenues and expenditures are broadly on target through Dec. 31; staff proposed modest adjustments including a $92,000 reduction in sales-tax expectations and targeted increases to investment-earning projections.
Finance staff presented the midyear budget-to-actuals report covering activity through Dec. 31 and recommended limited adjustments to align revenue estimates and expenditures.
The Finance Director said citywide revenues were approximately 48% of budget and expenditures about 46% at midyear, with the general fund operating revenues at about 41.3% of budget through midyear. Staff attributed shortfalls in part to timing differences—especially sales taxes that arrive months after the activity—and recommended targeted changes rather than structural shifts.
Specific proposed adjustments cited in the presentation included reducing sales-tax expectations by roughly $92,000 for the fiscal year, bringing a revised budget total in the materials from approximately $5.8 million down to about $5.7 million. Staff also proposed modest upward adjustments to interest-earning projections for enterprise funds (water and wastewater) of about $30,000 each, citing higher-than-expected investment earnings tied to timing of projects.
Councilmembers asked about the Sonoma County Water Agency rates and requested a follow-up quarterly update; Vice Mayor Harvey asked that staff watch 'yellow' indicators on the fiscal-resilience dashboard and return with third-quarter data in April. Members also pressed staff on project FTE estimates after a later agenda discussion about a proposed parking study and work-list prioritization.
Staff said total cash and investments exceeded $14.9 million and that existing reserves were sufficient to meet operational needs for at least six months under current projections. The Finance Director indicated staff would return with a final budget update and estimated actuals in June as the city moves toward adoption of the next year’s budget.
What happens next: staff will bring a quarterly update in April and the final estimated-actuals adjustment in June; council asked for clearer project-prioritization options to reconcile FTE constraints against new work such as a potential parking study.
