AGENDA
JOINT MEETING OF THE COTATI CITY COUNCIL AND THE SUCCESSOR AGENCY TO THE
FORMER COTATI COMMUNITY REDEVELOPMENT AGENCY
City Council Chamber, City Hall 201 W. Sierra Avenue
Tuesday, April 15, 2025
6:00 PM SPECIAL MEETING
The Cotati City Council welcomes you to its meetings that are generally scheduled for the 2nd and 4th Tuesday of every month. Your interest and participation are encouraged and appreciated.
City Council meeting agendas, minutes and recordings are posted on the City’s Meeting Portal at www.cotaticity.gov. For questions about the agenda or to receive the City Council agenda by e-mail, contact the Deputy City Clerk at [email protected] or 707-665-3622.
Cotati City Council Meetings will be conducted in person in the Council Chamber. To guarantee your ability to participate, you must attend the meeting in person. As a courtesy to the public, the City allows citizens the opportunity to view and offer public comments virtually through Zoom Online video conferencing platform. Technical difficulties may occur that make the Zoom platform unavailable. If Zoom is unavailable, the meeting will continue. Participants considering using Zoom should consider attending in person, if they desire to ensure their ability to view the meeting and offer public comments.
Subject to the above disclaimer, Zoom Online video conferencing is available to watch or listen in the following ways:
1. Using the following online livestream meeting portal link: https://www.youtube.com/@cityofcotati7280/streams
2. Cable T.V. Broadcast, local channel 28
Members of the public can participate in the meeting online by clicking the link below:
https://us02web.zoom.us/j/87312967487?pwd=u0Amlv3OsjywqC8pG8Kyfmqzz5v3i0.1 If you do not have the ability to join online, but would like to participate in the meeting, you can call into the meeting using your telephone, by dialing one of the following numbers and entering the meeting credentials:
Webinar ID: 873 1296 7487 Passcode: 559179
+1 (669) 900-6833 or +1 (346) 248-7799 or +1 (253) 215-8782 or +1 (301) 715-8592 or +1 (312) 626-6799 or +1 (929) 436-2866 Attendees may join the meeting any time after 5:45pm. Attendees will be muted until they are called upon for Public Comment. To make a public comment, use the “raise hand” icon on your smart device or desktop computer, or dial *9 if you are using just your telephone. Please listen carefully for the Mayor or City Clerk to address you by name (or phone number) and for the audible Zoom notification that you have been unmuted. Once you begin your public comment, your three minutes will begin.
If you would prefer to submit your public comment in writing, please email your comments to [email protected]. If you are commenting on a specific agenda item or items, please state the agenda item number(s) in the subject line of the email. All comments received via email will be provided to the City Council or Planning Commission in writing and included as part of the record of the meeting.
Notice is hereby given that Council may discuss and/or take action on any or all of the items listed on this agenda.
Any writings or documents provided to a majority of the Cotati City Council regarding any item on this agenda will be made available for inspection in the online Meeting Portal at www.cotaticity.gov and in the City Manager’s office located at 201 West Sierra Avenue, Cotati, California, during the City’s posted business hours.
Disabled Accommodation: Upon request, this agenda will be made available in appropriate formats to persons with disabilities as required by Section 202 of the Americans with Disabilities Act of 1990. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should contact the Deputy City Clerk at (707) 665-3622 at least 48 hours in advance of the meeting.
Rules of Decorum: To avoid distraction, the following meeting etiquette shall be enforced. • Silence electronic devices, including cell phones.
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Cotati City Council Packet April 15, 2025
• Audience members are advised to keep conversations to a minimum or conduct them outside the building. • Photographs or video recordings using tri-pods or other means that would be distracting are to be taken only from the designated media area. • The Presiding Officer shall request that the audience withhold expressions of support or opposition for speakers in the interest of time and to encourage the full expression of differing views. (City Council Policy 2025-01 III.B.1.) Public Comment (Action items): Public comment on any one agenda item where the City Council will be taking some action is limited to no more than three (3) minutes per person. Action items are typically designated on the agenda title.
Public Comment (Non-Action items): Public comment on non- action agenda items shall be received during the designated portion of the agenda.
Comments shall be limited to no more than three (3) minutes for all non-action agenda items.
Waiver Warning: If you challenge decisions/direction of the City Council of the City of Cotati in court, you may be limited to raising only those issues you or someone else raised at public hearing(s) described in this agenda, or in written correspondence delivered to the City of Cotati at, or prior to, the public hearing(s).
City Council meetings are conducted according to City Council Policy 2025-01: City Council Rules. This policy available for inspection in the online Meeting Portal at www.cotaticity.gov and in the City Manager’s office located at 201 West Sierra Avenue, Cotati, California, during the City’s posted business hours.
Those wishing to address the Council are asked to complete a speaker card and give it to the City Clerk. When you are called, step to the podium and state your name and address for the record. Persons wishing to address the Council are not required to identify themselves or complete a speaker card; (Gov’t. Code § 54953.3); however, this information assists the Mayor by ensuring that all persons wishing to address the Council are recognized and it assists the City Clerk in preparing the City Council meeting minutes.
1. CALL TO ORDER
2. APPROVAL OF MINUTES AND NOTICE OF WAIVING OF READING OF ALL
RESOLUTIONS AND ORDINANCES INTRODUCED AND/OR ADOPTED UNDER THIS
AGENDA (ACTION)
A. COTATI CITY COUNCIL – SPECIAL MEETING – APR 1, 2025
3. PUBLIC COMMENT
Pursuant to California Government Code Section 54954.3(a), members of the public wishing to address the Council may do so at the beginning of the special meeting, and such comments shall be limited to the special meeting topic.
4. STUDY SESSION
A. FISCAL YEARS 2025/26 & 2026/27 - BUDGET STUDY SESSION #2 - ENTERPRISE
FUNDS, CAPITAL PROJECTS AND FUNDS, UPDATED GENERAL FUND Study Session on Enterprise Funds, Capital Projects Funds, and the updated General Fund for Fiscal Years 2025/26 and 2026/27. No action is proposed.
B. FISCAL YEAR 2025/26 AND 2026/27 - BUDGET STUDY SESSION #2 - SPECIAL
REVENUES AND INTERNAL SERVICE FUNDS
Study session on Special Revenues and Internal Service Funds Planning for Fiscal Years 2025/26 and 2026/27. No action is proposed
5. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED
6. ADJOURNMENT
Certification of Posting of the Notice: I declare under penalty of perjury that I am employed by the City of Cotati and that I posted this notice on the City’s website, bulletin boards of City Hall, Veterans’ Memorial Building and the SMART Train Depot, on or before April 11, 2025.
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Cotati City Council Packet April 15, 2025
/s/ Kevin Patterson, Deputy City Clerk
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: FISCAL YEARS 2025/26 & 2026/27 - BUDGET STUDY SESSION #2 - ENTERPRISE FUNDS, CAPITAL PROJECTS AND FUNDS,
UPDATED GENERAL FUND
Date: April 15, 2025
Written by: Angela Courter, Director of Administrative Services Recommendation
Study Session on Enterprise Funds, Capital Projects Funds, and the updated General Fund for Fiscal Years 2025/26 and 2026/27. No action is proposed.
Background
The goal of this study session is to give an overview to the City Council Members and the public as well as address comments or questions about proposed budget details. Each budget workbook shows the historical actual balances for three years (FY 21/22, FY22/23, and FY 23/24), the adopted budget for 2024/25, the estimated budget for 2024/25 and the proposed budgets for 2025/26 and 2026/27. The budget format is consistent with how it was presented in prior fiscal years except for the additional proposed budget year for our first ever biennial budget.
While putting together a City Budget, we must take into consideration the limited resources of any budget, the various levels of uncertainty with different funding sources, and how to best use the funding or City staff to meet the needs of the community. The drafted budget strives to strike a balance between continued delivery of efficient city services to our residents and business owners, continuing development of key capital projects, and continuing to pursue further economic development.
As always, community input is appreciated and necessary to ensure a budget that best meets the needs of the community in the City’s areas of responsibility. For this budget study session, it is the goal to obtain feedback going into the development of our final annual budget for adoption by the Council in June.
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Analysis/Discussion
With the guidance provided by the City Council and the community during the strategic planning session held on February 20, 2025, and followed with discussions on prioritizations of projects and alignment with City Goals during our first budget study session on April 1, 2025, staff have updated the projects and related expenditures for the capital plan, related required transfers out of resources, confirmed allocation of staffing levels and increased insurance premiums within the General Fund and the related allocations to the enterprise funds. Fiscal Impact Budgets for Enterprise and Capital Projects are primarily developed by the Director of Public Works and Engineering using approved Rate Studies for the Enterprise Funds as well as our Capital Improvement Plan, consistent with the General Plan and related infrastructure capital and master plans.
Additionally, as directed by the City Council, staff have provided a new proposal for the Mission Statement, as well as some minor edits to Goals and Objectives, which are attached.
Enterprise Funds
The proposed budget includes a combination of conservative revenue projections and conservative operational expenditure projections. Revenue assumptions include consistent consumption with the prior year usage. Any change in consumption would change the expenses and the volumetric portion of the rate revenue.
Significant operational expenditures that are best practice, but are discretionary, include:
• Continued transfer to the Internal Services Funds for Compensated Absences Fund and Vehicle Replacement Fund.
• Full prepayment of the annual regular pension unfunded liability payment to reduce future pension costs. Note that this does not include additional discretionary payments (ADPs) at this time. Future ADPs are subject to funding availability and City Council direction.
Other costs increased in both the water and sewer funds due to the switch to monthly billing, including merchant fees, postage, and printing fees. The budget does not include a contingency for unforeseen repairs. Merchant fees are estimated to be approximately $50k for each of the water and sewer funds.
Water Fund Operations
Revenues
• Fiscal year 2024/25 estimated actuals are approximately 7% higher than the adopted budget and 8% higher than last year’s, FY 2023/24 actuals. • The proposed budgets for fiscal years 2025/25 and 2026/27 are conservatively proposing an increase of approximately $120K or 5% for fiscal year 2025/26 compared to the estimated actuals for 2024/25 and increase by approximately $249K or 9% for fiscal year 2026/27 as compared to the proposed budget for 2025/26. These increases are mainly due to the approved rate change, offset by continued increased conservation. These increases follow the proposed rate changes (not the historical Packet Page 8 of 159
rate changes).
Expenditures
• Fiscal Year 2024/25 are anticipated to decrease by just over $1K or 0% from the adopted budget. This change also represents a $329K or 16% increase over the prior year 2023/24 actuals.
• The proposed budget for fiscal year 2025/26 is conservatively estimated to increase expenditures by approximately $911K or 38%, of which $700,000 pertains to direct transfers out to the Water Capital Fund. Adjusted for this transfer the total expenditures are increasing $210K or 9% primarily driven by increased cost for Aqueduct water usage charges ($143K), Vehicle Replacement Contributions ($112K) plus other increases in Insurance and Bank and Merchant Fees offset by reductions in Special Project Contract Service ($100K).
• For the proposed budget year 2026/27 there is an estimated decrease of approximately $162K or approximately 5% from the proposed budget for fiscal year 2025/26. The budget includes an additional $600K transfer of funds to the Water Capital Fund.
Adjusting both years for transfers, the total increase in expenses is proposed to decrease $63K or 2% primarily due to the reduced Vehicle Replacement Contributions.
Sewer Fund Operations
The proposed budgets for 2025/26 and 2026/27 for the Sewer Operations Fund represent a very strict budget. The primary expense is treatment costs with the Santa Rosa Subregional System (approximately $2.5M), with all City operations, maintenance using approximately $1.3M ($3.8M in total operations). Total revenue is projected to be approximately $3.7M and $4.1M for each respective year with a projected net loss of approximately $133K for 2025/26 and a thin net income of $188K in 2026/27. As a result, the budget projection anticipates approaching the required reserve by the end of Fiscal Year 2025/26 and 2026/27.
This has been anticipated in the most recent rate studies, as provided in the attached presentation, with gradual intervention implemented by the City Council to avoid rate shocks. This fund is closely monitored, and staff intend to continue looking for ways to reduce expenses and re-analyze rates with updated revenues/expenses early in the fiscal year to determine if further corrections are needed. In any case, it is anticipated that it will take several years to completely turn around the sewer operations fund with very limited ability to implement significant capital projects during this time.
Revenues
• Fiscal year 2024/25 estimated actuals are 1% lower than the adopted budget and 2% higher than last year’s, FY 2023/24 actuals.
• The proposed budget for fiscal year 2025/26 is conservatively proposing an increase of approximately $285K or 8% of the estimated actuals for 2024/25. For proposed budget 2026/27 includes estimated increases of $359K or 10% compared to the proposed budget for 2025/26. These increases are mainly due to the proposed rate change, offset by continued increased conservation.
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Expenditures
• Fiscal Year 2024/25 are anticipated to increase by just over $14K or less than 1% the adopted budget or increase $224K or 6% over the prior year's actuals. • The proposed budget for fiscal year 2025/26 is conservatively estimated to increase by $34K or 1% from the 2024/25 adopted budget or $20K and 1% from the 2024/25 estimated actuals. The proposed budget for fiscal year 2026/27 is estimated to increase by $47K or 1% from the proposed budget for fiscal year 2025/26.
Enterprise Capital Funds
These funds include decreased revenues due exclusion of new connection fees due to uncertainty of actualization as well as reduced investment earnings. Major capital investments for the Water Capital Fund are estimated at $1,231,300 for the next two proposed budgetary fiscal years include:
• Well 2 Renewal/Remediation
• Water Renewal and Replacement Master Plan
• Distribution System Monitoring
• Well 1A/Well 3 Treatment Renewal and Replacement
• P-3, 4: Cypress Tank New Water Main
• T-1: New Cypress Storage Tank
• BP-1: Cypress Tank Booster Pumps
For the wastewater/sewer system staff are proposing placing critical projects on the budget for both fiscal year 2025/26 and 2026/27 and holding the other projects on a standby list for initiation due to funding constraints. The funded projects include:
• Sewer Renewal and Replacement Master Plan
• Sewer Lift Station Renewal and Replacement
The postponed (B List) projects include:
• Wastewater System Emergency Generator Project
• Sewer Collection System Renewal and Replacement
This dip in funding has been an anticipated impact on the Sewer Fund for the most recent rate studies. This fund is closely monitored, and staff intend to continue looking for ways to reduce expenses and re-analyze rates with updated revenues/expenses early in the fiscal year to determine if further corrections are needed. In any case, it is anticipated that it will take several years to completely turn around the sewer operations fund with very limited ability to implement capital projects during this time.
Capital Projects
Capital Projects are funded with a combination of Special Revenue Funds and General Funds as well as matching grant resources. Currently the budget for fiscal year 2024/25 includes capital projects totaling $6.9M of which $604K in offsetting grant funds are expected. These are presented within the Special Revenues Budget workbook. Other capital projects not expected to include matching grant funds are included in the capital project fund 605.
Total projects are estimated at $6.08M for fiscal year 2024/25 compared to $1.3M for fiscal year Packet Page 10 of 159
2023/24. Capital projects are subject to timing based on City planning and implementation of the pavement management plan or parks master plan. Significant funding was invested in City streets for fiscal year 2021/22 through 2023/24 due to the availability of borrowed street funding obtained in 2021/22.
For the proposed fiscal year 2025/26, staff have proposed $2.5M in non-grant funded capital projects and an additional $4.5M in grant funded projects. Total contributions from the General Fund are projected at under $3.6M, with matching other funds from Grants at $1.5M and other Special Revenue funds of $1.9M. For both fiscal years 2025/26 and 2026/27, and consistent with the Sewer Capital Fund, staff have placed projects on a planned but postponed, B List. These projects are desired but are of a lower priority and will be incorporated into the budget if funding allows. For fiscal year 2025/26 there are two projects, ADA Transition and Redwood Drive and the Microgrid City Hall Complex with combined estimated costs of $397K.
For the proposed fiscal year 2026/27, staff have proposed $1.3M in non-grant funded capital projects and an additional $1.4M in grant funded projects. Total contributions from the General Fund are projected at under $287K with matching other funds from Grants at $1.0M and other Special Revenue funds of $1.3M. For fiscal year 2026/27 there are three projects listed as B List projects, Veronda-Faletti Ranch Barns, Traffic Signal at William George, and Putnam Park Improvements Phase 2 with combined estimated costs of $6.7M.
Financial Considerations
Overall, the budgets are in line with the best City revenues estimates now, using independent tax forecasting experts who develop estimates based on Cotati’s specific mix of businesses. The proposed budget is conservative in both expenditure and revenue forecasts. The City Council has continued to prioritize supporting robust reserves more than the required reserve of 33% of operating expenditures to protect city enterprise services against economic disruptions.
Therefore, this fiscally conservative approach allows the proposed budget to protect essential operations.
Environmental Issues
Not applicable. The action proposed is not a project as defined by CEQA.
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DRAFT
1 c:\pgcompilerservicerelease\temp\cotaticity\meetingid_1418\packet\docx\5351\6424\1.docx VISION: COTATI WILL BE A CONNECTED, RESILIENT AND INCLUSIVE CITY WHERE WE HONOR OUR PAST AND SHAPE OUR VIBRANT FUTURE TOGETHER.
MISSION: BUILDING A VIBRANT AND SUSTAINABLE CITY FOR CURRENT AND FUTURE RESIDENTS, BUSINESSES AND VISITORS. MAXIMIZE COMMUNITY SAFETY, HAPPINESS
AND FISCAL STRENGTH
THRIVE BY BUILDING FISCAL STRENGTH AND ENGAGE THE COMMUNITY WITH
EXCELLENT SERVICES, PUBLIC SAFETY AND INFRASTRUCTURE
2025-2027
GOALS AND OBJECTIVES
1) Goal: Livability and Infrastructure
a) Objective: Excellent Public Infrastructure
i) Invest for continual improvement of the infrastructure ii) Provide clean, well-maintained parks and public buildings that are community assets, exceed expectations and promote community gathering
iii) Provide clean, well-maintained public streetscapes that exceed expectations iv) Deliver clean, reliable drinking water, reduce water loss and improve conservation v) Provide well maintained and reliable sewer systems
vi) Provide well maintained storm drain system that improves water quality and prevents undesirable flooding
vii)Pursue grants and alternative funding sources
b) Objective: Housing Opportunities for All
i) Work to maintain and grow housing options for all residents ii) Actively pursue potential financial mechanisms or partnerships to expand affordable housing options.
iii) Orient business practices to simplify, facilitate and streamline permitting iv) Explore options to reduce total costs to produce housing c) Objective: Fast, Helpful Customer Service
i) Go out of our way to assist customers
ii) Seek out innovative ways to provide better customer service iii) Low barrier review of ideas/projects up front
iv) Clear written requirements and rapid timelines for review 2) Goal: Balanced City Budget and Economic Development.
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DRAFT
2 c:\pgcompilerservicerelease\temp\cotaticity\meetingid_1418\packet\docx\5351\6424\1.docx a) Objective: Strong City Finances
i) Focus on financial vigilance and cost control
ii) Balanced budget for long term sustainability
iii) Clear, transparent and accurate accounting and financial documents that incorporate best practices
iv) Pursue new revenue opportunities to support city services and infrastructure v) Continually improve service delivery through joint procurement, leveraging internal and external staffing resources, and developing systems, policies and procedures to streamline processes for more efficient use of public funds and expanded staff capabilities
b) Objective: Grow the Economy
i) Regional promotion to attract new businesses and development Work with Chamber to promote our businesses
ii) Promote ordinances and processes that encourage business development iii) Continually update processes and City requirements, as appropriate, to encourage new businesses, jobs and revenue growth
3) Goal: Promote community connections and encourage participation a) Objective: Promote programs that bring the community together and build a sense of place
i) Prioritize public information and awareness of available public programs and services ii) Promote programs that encourage a sense of connected neighborhoods 4) Goal: Ensure Community safety & resiliency
a) Objective: Provide a safe community for all residents, businesses, and visitors i) Improve emergency preparedness, including wildfire preparedness ii) Mitigate and adapt to the impacts of climate change, in accordance with adopted City Council policies
iii) Improve road safety for all users
iv) Safe neighborhoods, parks and public spaces
v) Improve crime prevention in businesses
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DRAFT
3 c:\pgcompilerservicerelease\temp\cotaticity\meetingid_1418\packet\docx\5351\6424\1.docx 5) Goal: Promote an equitable, compassionate, and healthy community that honors diversity as a source of strength
a) Objective: Ensure that all city government operations are inclusive and equitable. i) Fairness in hiring and promotions, greater opportunities in contracting, and equitable services to all residents.
b) Objective: Advance equity and health in the community i) Partner with Cotati residents and stakeholders, other jurisdictions, and nongovernmental organizations.
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: FISCAL YEAR 2025/26 AND 2026/27 - BUDGET STUDY SESSION #2 - SPECIAL REVENUES AND INTERNAL
SERVICE FUNDS
Date: April 15, 2025
Written by: Angela Courter, Director of Administrative Services Recommendation
Study session on Special Revenues and Internal Service Funds Planning for Fiscal Years 2025/26 and 2026/27. No action is proposed
Background
With the guidance provided by the City Council and the community during the strategic planning session held on February 20, 2025, and April 1, 2025, staff has updated the attached draft budget of the Special Revenues and Internal Service Funds.
This study session's goal is to provide an overview to Council Members and the public, as well as address comments or questions about proposed budget details. Each fund shows the historical balances for three years: the adopted budget for 2024/25, the estimated actual budget for 2024/25 and the proposed budget for 2025/26 and 2026/27. The budget format is consistent with how it was presented in prior fiscal years with the addition of the second proposed budget year.
As always, community input is appreciated and necessary to ensure a budget that best meets the needs of the community in the City’s areas of responsibility. For this budget study session, it is the goal to obtain feedback going into the development of our final budget for adoption by the City Council in June.
Analysis/Discussion
Special Revenue Funds
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The Special Revenue Funds are a group of accounts established by a government for restricted use to ensure that certain revenue sources are used or earmarked only for their specific purpose.
Each department manages the special revenue funds that are primarily coordinated with that department’s purpose. The Administrative Services Department works with the departments to estimate the revenues and account for proposed expenditures and use of fund balance for the purpose of the designated revenue sources.
For the proposed budgeted funds, as provided in the attached workbooks, there are no significant changes for inflows or outflows of resources. In total, $950,000 is estimated to transfer out of restricted special revenue funds to support capital projects for fiscal year 2024/25 and $1,362,900 and $1,159,760 is proposed to be transferred for capital projects in fiscal years 2025/26 and 2026/27 respectively. Some of this special revenue funding facilitates the over $2,761,000 in grants projects funds that the City is proposing to receive for both fiscal years.
More detail on the capital projects being funded will be presented within the Capital Project budget study session.
Included within the Special Revenues is the Grants Fund, as it supports more than just capital projects and has been reclassified by our auditors as a Special Revenue Fund. For Grants, City Staff have assumed $65,000 in funding from Sonoma County Measure O funds which partially offsets the general fund cost of the S.A.F.E. program. The final funding amounts have yet to be confirmed by the county, so this is expected to change in a relatively minor way for the final presentation of our budget to the City Council. Other funds not presented include the passthrough funds representing the debt service management and the successor agency private purpose trust fund. No significant changes are proposed in these funds as they primarily serve non-discretionary debt service
Internal Service Funds
These funds finance the goods or services provided by one department or agency to other departments or agencies of the governmental unit, or to other governmental units, on a cost reimbursement basis. Currently the City utilizes a Vehicle Replacement Fund and a Compensated Absences Fund for these purposes.
The proposed vehicle replacement fund has reduced the expenditures for 2024/25 as staff are evaluating the fleet on hand for best use before replacement. Most expenditures in the fiscal year pertain to conversion upfitting of a couple vehicles as well as replacement of one generator for the Public Works department. For fiscal years 2025/26 and 2026/27 staff have proposed a budget of single vehicle replacements for the public works and police department each year. The 2025/26 fiscal year also includes the carried forward replacement of the Ford F800 dump truck for public works as well as misc. other equipment and up fit of existing vehicles to repurpose vehicles on hand that are not being fully utilized. For 2026/27, Staff are proposing the replacement of the City Hall Chevy Bolt and a single tractor mower for the public works department. Consistent with prior years, staff are proposing to track all expenses for repairs and maintenance (excluding fuel) within the vehicle fund and then bill out to the corresponding managing fund and department. This is consistent budgetary and financial reporting practices of agencies with fleet management funds.
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The Compensated Absences Fund is designed to maintain the government wide compensated absences liability to offset impacts to other funds by retirements or other significant usage of compensated absences. This is accomplished by billing out proportionate usage and balance to the appropriate funds and departments. The City has worked hard to improve the fund balance, and for fiscal year 2024/25 we incorporated the expected use rates and increases in Salaries and Benefits Schedules, and we anticipate staying on budget for these funds. For fiscal years 2025/26 and 2026/27 staff are proposing to start bringing down the fund balance as staff with significant balances retained subject to payout are anticipated to decrease due to retirements. These balances are estimates and could be significantly changed based on separation through staffing turnover or retirements. These balances will continue to be monitored.
Financial Considerations
Overall, the budgets are in line with the current best estimates of City inflows and outflows.
Some special revenues are derived from development activity, and we have used a very conservative estimate of limited or no development for 2025/26 and 2026/27. Other inflows of resources that are derived using sales tax or other tax measures are evaluated consistent with our independent tax forecasting experts or other experts in the field.
Based on the best available data, the proposed budget is conservative in terms of expenditure and revenue forecasts. All funds are considered compliant with the proposed use for their designated special purposes.
Environmental Issues
Not applicable. The proposed action does not meet the definition of a project under CEQA.
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*Major Funds
SPECIAL REVENUE FUNDS
What are Special Revenue Funds?
Special Revenue Funds are a group of accounts established by a government for restricted use to ensure that certain revenue sources are used or earmarked only for their specific purpose. This Special Revenue Fund type may be used to account for the proceeds of specific revenue sources that are legally restricted or restricted by City Council policy for a specified purpose. *The Inclusionary Housing Fund is a special revenue fund used to account for in lieu impact fees restricted in use to inclusionary housing purposes.
*The Low-Income Housing Fund is a fund which was established to conduct the dissolution operations related to low-income housing assets and activities of the former Redevelopment Agency.
Grants Fund is used to account for the construction of projects that utilize federal, state, regional, and local grants funds other than CDBG. City staff applies for and receives competitive funding grants for various City projects that meet specific criteria.
Gas Taxes Fund accounts for funds received from the City of Cotati's share of the Highway Users Tax collected by the State from gasoline sales. The Highway Users Tax is also known as the "Motor Vehicle Fuel Tax" and "Gasoline Excise Tax." Proceeds are restricted to the operation and maintenance of city streets.
Bed Tax is a building permit fee which is required to be used for the acquisition, improvement, expansion, and maintenance of public parks, playgrounds, open spaces, recreation facilities, and community facilities.
The Park In-Lieu Fee Fund accounts for funds received from development and used for park development and improvements as specified in the fee program.
MTC Street Fund is utilized for revenues received for transportation and street programs and funded by the Metropolitan Transportation Commission (MTC) or the Sonoma County Transportation Authority (SCTA). The MTC is the transportation planning, financing, and coordinating agency for the nine-county San Francisco Bay Area. In November of 2004, Sonoma County passed the Traffic Relief Act (Measure M) which provides 0.25% sales tax that is used to maintain local streets, accelerate the widening of Highway 101, restore, and enhance transit services, support the development of passenger rail service, and build safe bicycle and pedestrian routes. The Sonoma County Transportation Authority (SCTA) administers sales tax receipts and distributions of the Sonoma County Measure M revenues. In 2020, voters in Sonoma County approved a measure to extend Measure M sales tax funding for an additional 20 years, known as “Go Sonoma”.
Traffic Mitigation Fund accounts for funds received from development and used for street improvements as specified in the fee program.
Road Maintenance Rehabilitation Account (RMRA) Fund is used to account for funding received from the State related to Senate Bill 1 - The Road Repair and Accountability Act of 2017. This fuel tax, which began on November 1, 2017, is to be used to fund local streets and road maintenance and rehabilitation projects including streets, traffic signals, and drainage improvements.
Landscape and Lighting Funds account for funds received through parcel tax assessments that are used for the purpose of financing the maintenance costs and improvement expenses of each district's landscaping and lighting zones.
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*Major Funds
Public Safety Fund accounts for the Citizens Option for Public Safety (COPS) program and other Public Safety related grants. The COPS program provides funding to local agencies for the purpose of public safety. The funds are to supplement and not supplant existing funding for front line services.
K-9 Program accounts for funds received from private donations that are utilized for the Police Department K-9 program which provides for police officers safety, narcotics enforcement, and community relations.
Affordable Housing-Linkage accounts for a fee charged to developers, which is then spent on affordable housing preservation or production.
PEG Grant Fund accounts for Public Education and Government access (PEG) grant funding special funds that are received by the City to support public, educational, and government transparency by broadcasting public meetings.
Community Facilities District Fund accounts for financing district that provides for funding specific facilities and services related to growth and development.
Parks Measure M Accounts for funds received as a pass through from the County Measure M Sales Tax to be used for the purpose of park improvements.
In-Lieu Tree Fund accounts for the funds received for tree replacements and repurposes the funds to replace trees within the City.
Disability Access and Education Revolving Fund represents a mandatory state fee assessed on business licenses that is to be used by the jurisdiction for the purpose of supporting accessibility training.
Veterans Building accounts for the collaborative agreement with Sonoma County for the City’s management of the Veterans building.
INTERNAL SERVICE FUNDS
What is an Internal Service Fund?
According to the Government Finance Officers Association (GFOA), an internal service fund is any fund that is used to account for the financing of goods or services provided by one department or agency, to other departments or agencies of the governmental unit, or to other governmental units, on a cost reimbursement basis. Currently, the City utilizes two such funds for these purposes. The Vehicle Replacement Fund (501) and the Compensated Absences Fund (502).
The Vehicle Replacement Fund accounts for vehicle replacement costs provided to other departments or other agencies of the government on a cost reimbursement basis.
The Compensated Absences Fund accounts for compensated absence costs provided to other departments or other agencies of the government on a cost reimbursement basis.
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Cotati City Council
Agenda Staff Report
Item type: INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED To: City Council
Subject: INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED Date: April 15, 2025
Written by: Kevin Patterson, Deputy City Clerk
Recommendation
Information or written comments pertaining to this meeting, and which was received after the agenda was posted, is attached below.
Pursuant to City Council Policy 2025-01: City Council Rules section IV A., written Communications, interested persons or their authorized representative may address the Council by written communication on any matters concerning the City’s business, or any matters over which the Council has control.
1. To be considered for inclusion in the agenda packet, such written communication shall be delivered to the Deputy City Clerk no later than 11:00 a.m. of the Wednesday the week preceding the regular Council meeting for which such written communication is intended.
2. If received after the above date and time, but no later than noon the day before the meeting, written communications received by the Deputy City Clerk shall be posted on the website by the end of that day and notification provided to the electronic Agenda mailing list by the end of the day. All written communications received by the Deputy City Clerk by 5 pm on the City Council meeting day shall be made available to the City Council and public at the City Council meeting.
City Council Policy 2025-01 is available at the online meeting portal at www.cotaticity.gov or by request from the Deputy City Clerk at 707-665-3622 or [email protected].
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