Rohnert Park council hears budget showing $52.6M in revenue, $59.3M in proposed spending; city aims for cuts and frozen positions

City Manager Marcela Pietra and Finance Director Betsy Host presented the draft FY2026–27 general‑fund budget to the Rohnert Park City Council on April 14, outlining a plan that projects $52.6 million in revenues and $59.3 million in proposed expenditures.

"We are dipping into reserves, which is not a way to balance and not a way to operate," City Manager Marcela Pietra said during the presentation, warning the council that the draft relies in part on one‑time monies and that longer‑term solutions are needed.

Host summarized the headline numbers: property tax projections of about $13.8 million, basic sales and use tax at roughly $15.5–15.7 million, transient‑occupancy tax around $4.2 million and total general‑fund revenues the city used to frame the recommendation: "This year, we are anticipating $52,600,000 as part of the budget preparation," she said.

The proposed spending includes roughly $26.7 million for public safety and $9.2 million for development services; overall general‑fund expenditures in the draft total about $59.3 million. Host said department requests totaled about $8.9 million this cycle; council and staff funded about $4.9 million of those items and left about $4.0 million unfunded.

The presentation traced the structural pressures behind the gap: flat sales tax receipts, reduced intergovernmental grants, rising personnel costs (Host said salaries and benefits make up approximately 60% of the general fund), and increasing pension (CalPERS) obligations. Host reported the city's most recent unfunded actuarial liability (UAL) for retiree pensions at about $51 million and described steps the city has taken—trust funds and additional payments—to chip away at the obligation.

Deferred maintenance was a major theme. Pietra told the council the city’s facility condition assessment placed deferred‑maintenance for facilities near $40 million; a separate pavement‑management assessment showed more than $20 million of street deferred maintenance, with staff estimating that $5 million a year would be needed to maintain a pavement condition index near recommended levels. Parks and recreation deferred maintenance was cited near $98 million; a tree inventory suggested replacement of roughly 16,000 public‑right‑of‑way trees could cost about $61 million.

Several public commenters and council members pressed staff for clarity on specific line items. Resident Steve Keith asked whether consulting fees are hidden inside 'professional contracts'; "it appears to me that we spend a lot of money on consulting firms," he said. Pietra and Host said staff would provide more detail and crosswalks to show where consultants and transfers appear in the budget documents.

Council members asked targeted questions about personnel costs and benefit choices. Host said the budget includes a placeholder for step increases that would cost about $470,000 if all eligible employees receive a 5% step next year; council members asked how often steps are scheduled to end for employees and whether step freezes were an option to reduce costs.

To reduce the draft gap, the manager’s office and finance staff proposed a mix of measures already reflected in the book: use of one‑time monies and reserves where appropriate, $3.3 million in departmental reductions already achieved (including frozen positions and eliminations), and continued scrutiny of transfers and special revenues. Host said staff moved previously reported infrastructure reserve dollars into a dedicated CIP/infrastructure fund to avoid double‑counting and to make project commitments more transparent.

Public‑safety staffing decisions were also a focus: the council learned that some higher‑paying supervisory positions are being 'underfilled' by hiring front‑line public‑safety officers, a short‑term operational tactic that preserves patrol capacity while yielding partial salary savings.

What’s next: staff and council agreed to continue the discussion at the second budget study session (special‑revenues and enterprise funds) on Thursday. The council also voted to postpone a separate, longer public‑safety presentation until that session so members can review materials and return with additional questions.

Why it matters: the draft shows the city balancing competing priorities—employee retention and public safety operations against deferred capital needs—and that balancing will require policy choices about whether to rely on one‑time funds, to tap restricted mitigation dollars, or to pursue local revenue options and further savings.

Sources: Presentation and Q&A at the April 14 Rohnert Park City Council budget workshop; statements by City Manager Marcela Pietra and Finance Director Betsy Host.