GENERAL
FUND
FISCAL YEAR
2025/26
CITY OF COTATI
SESSION DATE :
APRIL 1, 2025
1 Study Session Overview 2
Tentative Schedule
Budget Study
General Fund
Conclusion
Packet Provided Schedules
City Council Revised Goals and Objectives
General Fund Workbook
General Fund Revenues and
Expenses Reports
Allocated Contract Services Detail
Budgetary Staffing
Tentative Schedule 3
Strategic Planning Session
•Developed City Objectives/Goals
Budget Focus
•Strategic Projects
Feb. 20, 2025
City Vision, Mission Summary
Budget Study Session
•General Fund
•Revenues
•Expenditures By Departments
•Allocated Contracts
•Budgeted Staffing
April 1, 2025
Budget Study Session
•Enterprise Funds
•Capital Projects
•Special Revenues
•Transfers In and Outs
April 15, 2025
Budget Adoption
June 10, 2025
Forecast Assumptions
Revenues 4
Revenues
Based on best available information
Continued impacts of
inflation/supply issues? Legislative Impacts from Federal, State & Regional Government Estimates are prudently conservative Cotati’s Revenue Base is Different Sales tax & Measure S, & Property Tax relatively secure but flat Cannabis Business Tax assumed slow growth
Other Revenues Assumed primarily
flat No current hospitality industry or
related taxes like Transient
Occupancy Tax (TOT)
Forecast
Assumptions
Expenses
5 Finding a Balance
FY 2025/25 and 2026/27 - $0 Based Budgeting.
2026/27 based on actual detail/assumptions or
CPI of 2.8% increase
Service Level/Operating Expense
Contract Services
Credit Card Processing Fees $134K in
2025/26
Liabilities Management (Capital, UAL)
No ADP to CalPERS – Continue Lump Sum
Payments
Outstanding Items
Insurance Costs (Estimates)
Transfers for Capital Projects
General
Fund
PROPOSED BUDGET FOR
FY 2025/26 AND 2026/27
6 What is a
General Fund?
7 A general fund is the primary fund used by a
government entity.
Used to record all resource inflows and
outflows that are not associated with specialpurpose funds. Activities being paid constitute the core
administrative and operational tasks of the
government entity.
For the City of Cotati these Core Services are
Police
Public Works
Recreation
Community Development
City Management
Administrative Services
City-Wide (Non-Utility) Infrastructure
Funding – Next Study Session
General Fund Budget
Highlights
8 Minimum reserve of 25% of operating expenses, per Resolution 2009-50 Revenues Increase from 2024/25 Adopted Budget
•2024/25 Estimate - Increase 4.3%
•2025/26 Proposed – Increase 1.9%
•2026/27 Proposed – Increase 1.8%
CalPERS ADP FY 2021/22, & Minor ADP in 2023/24 + 2024/25 2024/25 - Staffing Costs Flat with 1% Increase
•Budgeted Full Employment
•Salaries Increased 8%
•Negotiated MOU’s and Step Increases
•Continued Lump Sum Payment of PERS
•Increased Health Benefit
Other Cost Changes
•Insurance cost is still uncertain.
•Capital Outlay Decreased do to Retiming of Replacements •Utilities Increase Primarily Related to Water and PG&E Rates •Contract Services decreased 1%
•Increased Legal Based on Other Special Legal Services as Needed. •Repairs and Maintenance for Cotati Room and City Hall Lock system General Fund
Operating In-Flows (Revenues)
9 %
Change
Increase/
(Decrease)
FY 2024/25
Proposed
Budget
%
Change
Increase/
(Decrease)
FY 2025/26
Proposed
Budget
FY 2024/25
Estimated
Operating Revenue Source by
Type
601- PROPERTY TAX $ 2,182,379 $ 2,146,280 $ (36,099) -2% $ 2,207,731 $ 61,451 3% 603- SALES TAX 5,977,000 5,867,000 $ (110,000) -2% 6,054,950 $ 187,950 3% 604- OTHER TAX * 818,450 873,750 $ 55,300 7% 911,000 $ 37,250 4% 606- LICENSE & FRANCHISE 748,600 782,800 $ 34,200 5% 809,800 $ 27,000 3% 607- RENTS 121,500 128,745 $ 7,245 6% 133,845 $ 5,100 4% 608- REVENUE - OTHER AGENCIES 224,320 231,541 $ 7,221 3% 238,864 $ 7,323 3% 609- OTHER REVENUE 254,835 250,310 $ (4,525) -2% 156,040 $ (94,270) -60% 620- CHARGES FOR SVS 403,433 385,060 $ (18,373) -5% 380,939 $ (4,121) -1% 650- INVESTMENT EARNINGS: 226,500 157,000 $ (69,500) -31% 132,200 $ (24,800) -19% 660- CONTRIBUTIONS 6,950 9,000 $ 2,050 29% 9,600 $ 600 6% 523,741 393,342 $ (130,399) -25% 394,792 $ 1,450 0% 670- TRANSFR IN & OTHR
SOURCES
$10,940,860 $11,011,083 $ 70,223 0.6% $11,429,761 $ 204,933 2% Total General Fund Revenue/Sources
* Includes cannabis business tax
10 COMPARATIVE IN-FLOWS
$- $1 $2 $3 $4 $5 $6 $7
601- PROPERTY TAX
603- SALES TAX
604- OTHER TAX
606- LICENSE & FRANCHISE
607- RENTS
608- REVENUE - OTHER AGENCIES
609- OTHER REVENUE
620- CHARGES FOR SVS
650- INVESTMENT EARNINGS:
660- CONTRIBUTIONS
670- TRANSFR IN & OTHR SOURCES
Millions
Comparative Revenues - Est. 2024/25 to Proposed Budget 2025/26 EST. ACTUAL BUDGET 2025-2026 PROP
IN-FLOWS
FOR BUDGET YEAR 2025/26
11 601- PROPERTY TAX , $2,146,280
603- SALES TAX , $5,867,000
604- OTHER TAX
, $873,750
620- CHARGES FOR
SVS , $385,060
670- TRANSFR IN &
OTHR SOURCES ,
$393,342
606- LICENSE &
FRANCHISE ,
$782,800 607- RENTS , $128,745
608- REVENUE - OTHER AGENCIES ,
$231,541 609- OTHER REVENUE ,
$250,310 650-
INVESTMENT EARNINGS: ,
$157,000
IN-FLOWS
FOR BUDGET YEAR 2026/27
12 601- PROPERTY TAX , $2,146,280
603- SALES TAX , $5,867,000
604- OTHER TAX ,
$873,750
606- LICENSE & FRANCHISE ,
$782,800
608-
REVENUE -
OTHER
AGENCIES ,
$231,541
609- OTHER
REVENUE ,
$250,310
620-
CHARGES
FOR SVS ,
$385,060 607- RENTS ,
$128,745 650- INVESTMENT EARNINGS: , $157,000
Major
In-Flows
Highlights
13 Property Tax Projected Revenue includes:
•2% Assessor’s applied CPI
•No New Adjustments Considered for New Development
•Estimate for Proposed Budget Years Based on Consultant Estimate and Conservatism Sales Tax Projected Revenue:
•Decrease for 2024/25 1% – Continued in 2025/26 – 3% and Increase in 2026/27 •Economic Uncertainty – Higher Propensity to Save
•Major Industry Groups in Cotati
Building/Construction
Fuel/Service Stations
Food/Drug
State/County Pool
Other General Fund
In-Flows Highlights
14 Other Tax
• Cannabis Business Tax
• Estimated at $785K for 2024/25
• Stable Existing Businesses
Licenses, Permits & Franchises
• No significant change except a small increase in Franchise Taxes
• Look to improve Business Licenses with Audit in FY 2025/26 Other General Fund
In-Flows Highlights
15 Other Agencies
•Public Safety Contract Services with SSU
Charges for Services
•Development/Public Works – meet budget expectations
•Police Charges
•Decreased Revenues in 2024/25 due to lower ticket and more warnings •Increase again for future proposed budget years.
Other Revenues
•Contract Class Revenues for Recreation - Continued Increases •Slowing Investment Returns - Reduced Investment Balance Out-Flow Highlights 16
•2024-25 - Additional Discretionary Payment of $326K processed ($273K For General Fund), plus Lump Sum
CALPERS
•ALLOCATED CONTRACT SERVICES
•SHARED INDIRECT COSTS SUCH AS AUDIT FEES, JANITORIAL COSTS, UTILITIES, ETC. •BASED ON FULL FTE
•ESTIMATE FOR IT SERVICES
CONTRACT SERVICES
EVALUATION
•USING ESTIMATES RECEIVED
•MARKET UNCERTAINTY – FIRES IN S. CALIFORNIA INSURANCE INCREASES •ESTIMATES ARE BASED ON EXISTING STAFFING
•INCLUDES ONLY NEGOTIATED MOU CHANGES
•TWO MOU CURRENTLY BEING NEGOTIATED
ALL DEPARTMENTS ARE
BUDGETED AT FULL
STAFFING
Expense by Category
2024-2025
Adopted
Budget
2024-2025
Est. Actual
Incr /
(Decr) Column1
2025-2026
Proposed
Budget
Incr /
(Decr)2 Column3
2026-2027
Proposed
Budget
Incr /
(Decr)3 Column3
700 - SALARY AND BENEFITS Total * 5,441,173 5,819,950 (378,777) -7% 6,355,450 535,500 8% 6,606,890 251,440 4% 707 - PAYOUTS Total 56,960 117,170 (60,210) -51% 100,894 (16,276) -16% 83,890 (17,004) -17% 800 - MATERIAL & SUPPLY Total 79,616 73,416 6,200 8% 81,621 8,205 11% 83,272 1,651 2% 801 - CONTRACT SERVICES Total * 1,760,844 1,688,126 72,718 4% 1,678,273 (9,853) -1% 1,629,844 (48,429) -3% 802 - LEGAL Total 207,425 202,893 4,532 2% 226,424 23,531 12% 199,540 (26,884) -12% 803 - UTILITIES Total * 444,040 435,700 8,340 2% 476,500 40,800 9% 511,510 35,010 7% 804 - OTHER INSURANCE 758,477 695,045 63,432 9% 797,675 102,630 15% 867,029 69,354 9% 805 - REPAIR & MAINTENANCE Total * 240,790 206,200 34,590 17% 309,230 103,030 50% 243,207 (66,023) -21% 806 - OTHER EXPENSES Total * 464,430 327,926 136,504 42% 409,916 81,990 25% 398,580 (11,336) -3% 807 - FISCAL FEES Total 93,806 56,180 37,626 67% 60,540 4,360 8% 73,930 13,390 22% 808 - DEBT SERVICE Total (15,370) 4,630 (20,000) -432% - (4,630) -100% - - 0% 809 - CAPITAL OUTLAY Total 33,421 225,610 (192,189) -85% - (225,610) -100% - - 0% 811 - MISCELLANEOUS EXPENSE Total 57,228 133,300 (76,072) -57% 36,175 (97,125) -73% 35,946 (229) -1% Grand Total 9,622,840 9,986,146 (363,306) -4% 10,532,698 546,552 5% 10,733,637 200,939 2% 17 GENERAL FUND
OPERATING OUT-FLOWS (EXPENDITURES)
BY CATEGORY
18 Expense by Department 2024-2025 2024-2025 EST 2025-2026 PROP 2026-2027 PROP
EXPENSES
Department: 10 - CITY COUNCIL 183,606 $ 179,067 $ (4,539) $ -2% 174,267 $ (9,339) $ -5% 199,904 $ 25,637 $ 15% Department: 11 - CITY MANAGER 935,990 923,727 -12,263 -1% 999,592 63,602 7% 973,989 (25,603) -3% Department: 12 - ADMINISTRATIVE SERVICES 531,160 534,865 3,705 1% 549,694 18,534 3% 579,531 29,837 5% Department: 17 - COMMUNITY DEVELOPMENT 901,168 953,539 52,371 6% 910,823 9,655 1% 902,224 (8,599) -1% Department: 18-22 - PUB WORKS-COMBINED 1,738,486 1,786,526 48,040 3% 1,934,294 195,808 11% 1,848,005 (86,289) -4% Department: 23 - POLICE 5,152,304 4,689,255 -463,049 -9% 5,390,703 238,399 5% 5,620,551 229,848 4% Department: 24 - RECREATION 502,432 514,661 12,229 2% 512,325 9,893 2% 546,893 34,568 7% Department: 25 - CODE COMPLIANCE 41,000 41,200 200 0% 61,000 20,000 49% 62,540 1,540 3% Total Operating Expenses 9,986,146 $ 9,622,840 $ (363,306) $ -4% 10,532,698 $ 546,552 $ 6% 10,733,637 $ 200,939 $ 2% Incr /(Decr) Incr /(Decr) Incr /(Decr)
GENERAL FUND
OPERATING OUT-FLOWS (EXPENDITURES)
BY DEPARTMENT
DEPARTMENTAL
OUT-FLOWS
FOR PROPOSED
BUDGET YEAR
2025/26
19 Department: 10
- CITY …
Department:
11 - CITY
MANAGER,
999,592 Department:
12 -
ADMINISTRATIV
E SERVICES,
549,694 Department:
17 -
COMMUNITY
DEVELOPMENT,
910,823
Department:
18-22 - PUB
WORKSCOMBINED,
1,934,294
Department:
23 - POLICE,
5,390,703
Department:
24 -
RECREATION,
512,325
Department:
25 - CODE
COMPLIANCE,
61,000
DEPARTMENTAL
OUT-FLOWS
FOR PROPOSED
BUDGET YEAR
2026/27
20 Department:
10 - CITY
COUNCIL, …
Department:
11 - CITY
MANAGER,
973,989
Department:
12 -
ADMINISTRATIV
E SERVICES,
579,531
Department:
17 -
COMMUNITY
DEVELOPMENT,
902,224
Department:
18-22 - PUB
WORKSCOMBINED,
1,848,005
Department:
23 - POLICE,
5,620,551
Department:
24 -
RECREATION,
546,893
Department:
25 - CODE
COMPLIANCE,
62,540
Allocated
Contract
Services
21 Descriptions of Contract Service Classifications:
1) Professional Services – includes services provided by certified professionals for business purposes (example auditors, actuary, etc.) 2) Legal and General Counsel Contracts – legal services 3) Technology and Data Management Services – includes all computer and systems management, website hosting, phone, record management 4) Insurance Contracts
5) Project Consultants – Specialty consultants for projects 6) General Contract Services – tree services, janitorial, landscaping and categorize by the PW Departments
Type of Contract
Sum of PY Budgeted
Contract Amounts
2024-25
Sum of Budgeted
Contract Amount FY
2025/26
Sum of Budgeted
Contract Amount
26/27
General 135,545 147,180 141,225
Insurance 941,750 1,033,332 1,123,100 Legal 181,000 192,000 197,900 Professional Services 121,922 121,600 142,900 Tech & Data 408,978 418,657 420,564
Grand Total 1,789,195 1,912,769 2,025,689
Expenditure Highlights
Departments Detail
22 City Council includes the following changes:
• Continued allocation of shared indirect costs; primarily city utilities and other contract services
• Significant other expenses include dues and subscriptions, travel, and allocated insurance.
• Fiscal Year 2026/27 includes Elections Fees
City Manager includes the following changes:
• Staffing Promotion Expected for City Clerk
Expenditure Highlights
Departments Detail
23 Admin. Services includes the following changes:
• Increased Fiscal Fees incurred by the City for General Fund revenues received One-time expenditures for possible AI projects for $25K and for Business License Audit Support.
Community Development change is primarily due to:
• Removal of Development Funded Professional Contracts
• Building permit revenue could be more if larger projects move forward • Contract project for permitting process review in FY 25-26 Public Works includes the following changes:
• Rebidding landscaping and janitorial contracts.
• Expect higher landscaping costs in FYs
• Capital Outlay with Equipment and Vehicle Replacements 1 new maintenance truck each year, some other accessory equipment Veronda Falletti Ranch currently includes $200k per year in operating expenses, some offset by program revenue.
Expenditure Highlights
Departments Detail
24 Police Services includes the following changes:
• Continued investment in technology services through the public safety consortium • Significant other expenses include allocated insurance and legal, recruiting, small tools and equipment. • OT increases to $250k in FY 25-26 from $210k in current FY to account for unfilled positions. Transition in police duty weapons from 45 caliber to 9 mm in FY 25-26 to reduce grip size to accommodate officers with different hand sizes, reduce on-going cost of ammunition Vehicle Changes – Current year revision to repurpose existing fleet 1 new vehicle each year 2025/26 and 2026/27 Recreation includes the following changes:
• Significant other expenses include allocated bank fees Code Compliance
• Anticipated return to normal code compliance activity Conclusion 25
A balanced budget
maintaining prudent fund
balance levels
We will continue to closely
monitor the operating
revenues to ensure sufficient
fund balance and cash
flows for continued
operations
Operating reserve
requirements continue to be
exceeded for General Fund
City staff will continue to
update the Council on any
significant budgetary
changes prior to budget
adoption.
City staff are committed to
exercise prudence and
integrity in the management
of public funds and provide
transparency and
accountability in its use.
26