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Rohnert Park midyear financial update: revenues lagging in some categories, encumbrance carryforwards increase appropriations
Summary
Finance Director Betsy Hose told the council the city had collected $23.4 million (47.2% of budget) at midyear, with sales and transient‑occupancy taxes behind timing expectations and a $2.7 million increase in expenditure appropriations for prior‑year encumbrances; staff will return in March with recommended budget amendments.
Finance Director Betsy Hose presented the City of Rohnert Park’s fiscal‑year 2025–26 midyear financial update to the council on Feb. 10, reporting midyear revenue collections, expenditure patterns and next steps for budget amendments.
Hose said the city had collected $23.4 million at midyear, about 47.2% of the revised revenue budget, noting that timing effects (sales tax lag and seasonality for transient‑occupancy tax) explain part of the shortfall in some categories. She called out $2.7 million in increased expenditure appropriations largely attributable to encumbrance carryforwards from FY 2024–25, which had been funded by assigned fund balance. Interest and rents were exceeding budget due to higher interest earnings; once allocations are finalized the general fund’s first‑half interest allocation was expected to be roughly $600,000.
On the enterprise side, the water fund showed $6.7 million (45.6%) in revenues against a $14.8 million budget, with operational spending and capital transfers staged for later in the fiscal year; the council recently adopted a five‑year water and sewer rate schedule to support capital needs. The sewer fund reported $9.9 million (47.4%) in revenues of a $20.8 million budget and project spending that remains low in the early fiscal period as large annual billings are scheduled later in the year.
Council members and staff discussed several follow‑ups: the city will return with a staff report appropriating labor‑negotiation side‑agreement amounts; finance and the city attorney are investigating options for collecting unpaid transient‑occupancy tax (TOT) from operators; and staff will bring formal amendment items in March, followed by April study sessions on the FY 2026–27 budget.
What happens next: Hose said proposed budget amendments will be ready in March; city manager review and subsequent council study sessions are scheduled in April ahead of a June budget adoption target.
Source: Presentation to the Rohnert Park City Council on Feb. 10, 2026, by Finance Director Betsy Hose.
