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Santa Rosa presents proposed $500M-plus budget with multi‑year plan to shrink $17.5M shortfall
Summary
City staff on May 5 laid out a proposed FY2026‑27 budget that uses one‑time reserves, vacancy management and a pension strategy to reduce a $17.5 million general‑fund shortfall while preserving core services; the proposal still requires additional decisions to close a structural gap.
City staff presented the Santa Rosa City Council with a proposed budget for the 2026‑27 fiscal year and a multi‑year strategy to reduce a structural general‑fund deficit. The administration said the citywide budget totals roughly $500–535 million and that the general fund faces a $17.5 million shortfall.
The city administrator opened the study session and described the proposal as a multi‑year “glidepath” that relies in part on one‑time resources. “Estamos programando el uso de una vez de las reservas estratégicas de 7.6 millones dó para eh cumplir con el déficit, ¿verdad?, propuesto en el Fondo General,” the administrator said during the presentation. Finance staff also outlined revenue assumptions that lean heavily on property and sales taxes, which together account for roughly half of general‑fund revenues.
Why it matters: Santa Rosa’s share of property taxes is limited — staff noted the city receives about 1.7 cents of every local dollar — which constrains how much property‑tax growth can close gaps. Officials said the proposed plan includes vacancy management, targeted program reductions and capital‑funding adjustments to avoid large service interruptions.
The presentation listed personnel and benefits as the dominant cost drivers. Verónica, a finance presenter, described the staffing and program tradeoffs under consideration: eliminating some vacant positions, reducing certain community program funding and transferring some functions between funds. Staff said the proposal currently identifies 29 general‑fund reductions and three additions, with net impacts on roughly 28 positions overall.
On pensions and longer‑term savings, the administration said a proposed pension strategy will reduce costs further across a five‑year horizon. The staff projected that, with the package of actions and the pension changes, the city can balance near‑term needs while working toward longer‑term fiscal sustainability.
Council next steps: Councilmembers asked staff for additional detail on reserve policy options and infrastructure priorities, and staff said the study session continues the following day with more department briefings and preparation for the formal adoption hearings in June. The council adopted routine consent items later in the meeting, and public comment urged preserving services for people experiencing homelessness and recreation programs.
The council did not adopt the budget at the May 5 session; staff emphasized the presentation is a study session and the adoption date remains on the council calendar for mid‑June.
