Cotati City Council
June 10, 2025

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Accounting Basis
Governmental funds, such as the General Fund, are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, revenues are considered available if they are expected to be collected within 60 days of the end of the current fiscal period.

Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Proprietary funds, such as the Water and Sewer Enterprise Funds, distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds are charges to customers for sales and services. Operating expenses for the enterprise funds include the costs of providing services, administration costs and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Fiduciary funds, such as the Successor Agency Fund, track assets held by the City in trust which are presented using the economic resources measurement focus and the accrual basis of accounting. Economic resources measurement focus is a method of financial reporting where statements report all inflows, outflows, and balances affecting or reflecting an entity's net position, including all assets that are available to the entity, not just cash or soon-to-be cash assets.

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Descriptions & Structure of City Funds
General Fund
One of the most commonly heard terms in municipal budget discussions is the General Fund. The General Fund is the largest fund that the City of Cotati maintains. The two major revenue sources for the General Fund are Sales Tax, and, to a lesser degree, Property Tax.

These revenue sources are dependent on the economic environment and can fluctuate from year to year.

Sales Tax - Cities and counties administered local sales tax ordinances with varying tax rates and exemptions until 1955, when the California Legislature passed the Bradley-Burns Uniform Local Sales and Use Tax Law. This law laid the groundwork for a sales tax system that authorizes the California Department of Tax and Fee Administration (CDTFA) to collect all sales and use taxes and distribute 1% of the sales tax to cities and counties. In November 2020, Cotati voters also approved Measure S, a 1% transactions and use tax. With state-wide sales tax plus various local and countywide sales taxes, the total sales tax rate in the City of Cotati is

10.25%. The city receives a total of 2% of the 10.25% in sales tax, with Bradley Burns and Measure S.

Property Tax - State statutes provide that the property tax rate be limited generally to 1% of market value, be levied only by the County, and be shared by applicable jurisdictions. The County of Sonoma collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to voter-approved debt. Property taxes are due on November 1 and March 1, and become delinquent on December 10 and April 10. The City receives property taxes pursuant to an arrangement with the County known as the "Teeter Plan". Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City.

Other Revenue - Other General Fund revenue sources are impacted by the economic environment, but not to the same degree as sales, property, and transaction and use taxes. These other sources include; Business License Tax, Permits and Franchises, Rents; Revenue from Other Agencies, Charges for Services, Transfers from Other Funds, Cannabis Business Tax, and Other Revenues.

Enterprise Funds
Enterprise Funds are for specific services that are funded directly through user fees. As the second-largest fund type in the City, the Enterprise Funds are fully self-supporting and are not subsidized by tax money from the General Fund. Cotati’s Enterprise Funds include Water Operating and Capital Funds (401 & 402) and Sewer Operating and Capital Funds (404 & 405).

Special Revenue Funds
Special revenues are monies received for a specifically identified purpose. Examples are Gas Tax (203), MTC Streets (204), and Measure M Parks (225) funds.

Capital Projects
Capital project funds are financial accounts that are used to track the building, renovating, or purchase of; equipment, property, facilities, parks, and other infrastructure or information technology systems which are to be used as a public asset or to benefit the public. Examples of these funds for the City are Grants Fund (201), Capital Outlay (604), and Capital Projects (605).

Debt Service Fund
This is a new fund for the City which records the accumulation of resources and payment of principal and interest on general long-term obligations and payments on contractual obligations. These debt service payments are supported by operating transfers from the General Fund and Enterprise Funds.

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Internal Service Funds
Internal Service Funds account for activities that provide goods and services to other departments or funds on a cost-reimbursement basis.

Fiduciary Funds
The City fiduciary funds are made up of the private purpose trust fund as well as the Custodial Fund. The private purpose trust fund that accounts for all the assets, liabilities, and financial activities of the Successor Agency to the City's former Redevelopment Agency that was dissolved effective February 1, 2012. The Custodial Fund is the South Sonoma Business Park Assessment District, which facilitates a special assessment debt service charged to landowners for the financing provided to develop the business park.

Identification of Major Funds
In line with GASB 34, the City defines major funds as funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of the corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds. Any other fund may be reported as a major fund if the government's officials believe that the fund is particularly important to financial statement users.

Total Adjusted Revenues and Expenditures for Major Funds Estimated Actual Fiscal Year 2024/25 - Total Adjusted Revenues and Expenditures for Major Funds
Percentage of Total Adjusted Assets and Liabilities
Fiscal Year 2023/24 Percentage of Total Adjusted Assets and Liabilities
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City's Budget Major Funds
The City reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The City Capital Projects Fund consists of various types of financial resources that are utilized to build, renovate, or purchase equipment, property, facilities, including buildings, parks, information technology systems and non-water/sewer infrastructure which are to be used to benefit the public.

The 2022A Streets Projects consist of special lease bond funds to be used on street improvement projects.

The Lease Debt Service Fund is a new debt service fund established to refund unfunded pension liabilities.

The City reports the following major proprietary funds:

The Water Fund accounts for the operations of the City's water treatment and distribution system.

The Sewer Fund accounts for the operation of the City's wastewater collection activities.

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Budget Development
The budget is the City’s financial plan for delivering effective services and efficiently managing the revenues which support those services.

It is an essential component of the City’s process for financial planning, management, and control. The budget is a plan of revenue and expense activities for each fiscal year and is intended to provide a clear, concise, and coordinated financial program to attain the City’s goals and objectives. Revenue estimates are derived using historical and economic data on the state and local levels.

The budget is also developed based on the following:

The community and City Council’s priorities are identified through annual strategic planning and budget workshops.

Service level prioritization, as identified by the City Manager Availability and sustainability of revenues
Legal mandates
Prioritized capital projects
Responsibilities
The Director of Administrative Services has the overall administrative responsibility for planning, coordinating, analyzing, preparing, and issuing the budget.

Each Department Director is responsible for preparing and submitting the budget for the department and its subsidiary divisions in accordance with the budget instructions.

The City Manager, in close consultation with the department directors, is responsible for making the final determination of the proposed budget to be submitted for approval to the City Council.

The City Council is responsible for setting the City’s priorities and approving the annual operating budget.

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Budget Adoption - Resolution 2024-36
Draft Resolution for Budget Adoption
Draft Resolution for Budget Adoption
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Budget Timeline
From October to December, the City Manager and Director of Administrative Services hold a series of planning meetings to analyze financial performance as of Mid-Year as well as determine preliminary budget guidelines for the upcoming fiscal year. The schedule below is the summary of the public planning and reporting meetings for the current budget cycle.  October 22, 2024
First Quarter of Fiscal Year 2024/25 Financial Reporting  January 21, 2025
City Council Facilitated Budget Planning Workshop
 February 11, 2025
Mid-Year Budget Evaluation and Financial Reporting Long Range Financial Forecast Presentation  February 18, 2025
Public Strategic Planning Session: - Develop Objectives - Budget Focus - Strategic Projects  April 1, 2025
Public Budget Study Session: - General Funds - Revenues/Expenditures - City Council Goals - Departmental Special Projects
 April 15, 2025
Public Budget Study Session: - Enterprise Funds - Water and Wastewater - Capital Projects - General Fund Transfers for Capital Projects Impacts - Special Revenues - Internal Service Funds  May 13, 2025
Third Quarter of Fiscal Year 2024/25 Financial Reporting  June 10, 2025
Budget Adoption
 July 1, 2025
Budget Installed for Fiscal Years 2025/26 and 2026/27 Estimated Budget revised for Fiscal Year 2024/25
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Cotati's Budgeting Process Video
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What is a City Budget?
Budget Development Process
Preparing the Budget
The budget development process is the formal method through which the City establishes its program priorities, goals, and service levels for the upcoming fiscal year. Through the budget development process, programs are established, service levels are expressed, performance measures are articulated, and resources are identified.

The City of Cotati prepares a "line item budget." The intent of this format is to provide the City Council with summarized yet detailed budget information by department. At the same time, the overall focus of the budget is on policy direction and departmental activities, with emphasis on the level and cost of each City service, what services are being proposed, and the effect of these activities on public welfare.

From October to December, the City Manager and Director of Administrative Services hold a series of planning meetings to analyze financial performance as of Mid-Year as well as determine preliminary budget guidelines for the upcoming fiscal year. Following these planning meetings, the budget calendar is developed. The budget calendar provides a timeframe for the planning and preparing of the City budget.

From January through February, the Administrative Services Department drafts the budget guidelines, instructions, and supporting materials, and establishes and assigns digital department budget workbooks within the ERP system. These budget guidelines include:
new budget policies for the upcoming fiscal year, department digital reports with historical actual and proposed operating revenue and expenses, and departmental variance analysis (actual year to date versus budgeted financial activity) and forecast analyses. Based on policy direction provided by the City Council through the City Manager, departments prepare their budget requests for the City Manager's review. As needed, the Administrative Services Department provides technical assistance to the department staff involved in preparing budgets for their departments. When the department budgets are completed, the department director reviews them and digitally submits them for review to the Administrative Services Department.

Simultaneously, the Administrative Services Department generates budgets for non-departmental budget items, including all personnel salaries and benefits as well as nondepartmental contract services. Additionally, the Department of Public Works and Engineering updates their projections and timing of the multi-year capital project program.

The Administrative Services Department compiles the departmental budgets and adds the non-departmental budget items and salaries and benefits costs into a draft line item budget rolling up to a single city-wide budget. With departmental input, the Administrative Services Department performs an initial analysis comparing all revenue and expenditure projections for reasonability and to ensure that they Table of Contents 3.6 Budgeting Process

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adhere to the budget guidelines and that no category has been overlooked. Using the consolidated budget, the Administrative Services Director, City Manager and Director of Public Works and Engineering run capital project funding scenarios based on the proposed multiyear capital project program. Once a scenario is reached that allows for appropriate fund reserves and compliance with City objectives, the proposed transfers of funds for meeting the funding needs for capital projects is then added to the compiled City-wide budget.

The City Manager, Director of Administrative Services, and Department Directors meet between March and the end of April to review the draft digital budget, make necessary adjustments, and determine which of the proposed new programs will be presented to the City Council for adoption. These meetings are an opportunity for each department and division to present their proposed budget and their justifications for new programs, and to enhance the City Council's knowledge of operational needs to meet City objectives. The Administrative Services Department confirms the results of the digital budget workbooks and recommendations for the City Manager's approval.

From May through June, the City Manager presents the final recommendations to the City Council as the Proposed Budget. The City Council's review includes citizens' input at public hearings and budget workshops. Upon completion of the review and all budget modifications, the budget is adopted by resolution of the City Council. The Council also adopts the City's appropriations limit in conformance with the California Constitution, Article XIIIb.

Continuous Budget Monitoring
Once in place, the adopted budget becomes the main internal control document used to monitor and manage the City’s financial position.

Monthly Revenue and Expenditures Reports are provided to department directors indicating revenue and expenditures for the month and year to date. This data is intended to help department directors control expenditures and track revenue. Department directors review the reports and investigate significant variances between actual revenues and expenditures and the budget projections. During this review, additional fund requirements may be identified for specific items or projects that were unforeseen at the time of initial budget adoption.

Accordingly, recommendations for additional appropriations are considered by the City Manager, submitted for approval to the City Council, and adjusted within the budgetary software by the Administrative Services Department.

Generally, the budget is formally amended at mid-year and at year-end. Additional appropriations, which were approved during the year, are added to the Adopted Budget and presented to the City Council as the Amended Budget. After the Council's review, the Amended Budget is adopted by resolution.

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Biennial Budget Process Life Cycle
This graphic shows the process of the two year budget for the City of Cotati.

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Budgeting 101 FAQ's
WHAT IS A MUNICIPAL BUDGET?
A municipal budget is a legally required management and planning tool to forecast expenditures and revenues the City will incur in the upcoming fiscal year. It is neither actual revenue nor actual expenditures, but a tool to plan for the desired level of expenditures with the expected level of revenue. The budget is constantly monitored throughout the year to make adjustments so that at the end of the year the budget is in balance.

WHO DEVELOPS THE CITY BUDGET?
Each year, the City Council and City staff work together to develop an Annual Budget with public input through a series of public strategic planning and budget workshops in the spring. While the Budget is being created, all parties must make decisions on how to utilize the finite amount of revenue that the City receives in order to produce the greatest benefits for the citizens.

WHAT DOES THE CITY BUDGET DO?
The Budget serves as a guide and an outline of how the funds should be spent to provide, maintain, and improve services to the City. The City Council, City staff, and the public all serve as participants in its creation and execution. The City is limited by the number of resources available, and as such, the Budget aids officials in determining which objectives have the highest priority and will have the greatest positive impact on the community. Budgets are also created for linking near-term goals with available resources while keeping in mind long-term goals and resources.

HOW IS THE BUDGET CREATED?
The budget is created by first establishing the goals and priorities for the City as determined by the Council during annual strategic planning meetings with City staff and the public. Once these goals are determined, a draft is created to accomplish those goals and priorities. Actual expenses and revenues from past years are also analyzed and reviewed to aid in forecasting expenses and revenues.

The draft Budget is then discussed in a series of public workshops to receive additional input from the City Council and the public. The Budget must be formally adopted by the City Council by June 30th each year. Once the City’s budget is adopted by the Council, the budget becomes an essential oversight tool in the city’s operations.

WHAT IS A CAPITAL IMPROVEMENT PLAN?
A multi-year capital improvement plan is a plan created by the City to identify needed construction projects and equipment purchases. This plan provides a timetable for construction phases as well as requirements for funding sources. The multi-year capital improvement plan includes City projects such as park improvements, street pavement maintenance, sewer and water system improvements, traffic signal and street lighting installations, and City facility construction or improvement.

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Basis of Budgeting
A municipal budget is a legally required management and planning tool to forecast expenditures and revenues the City will incur in the upcoming fiscal years that it covers. It is neither actual revenue nor actual expenditures, but a tool to plan for the desired level of expenditures with the expected level of revenue. The budget is constantly monitored throughout the year to make adjustments so that at the end of the year the budget is in balance.

The budget is prepared in accordance with Generally Accepted Accounting Principles. The budgets for all funds have been prepared on a modified accrual basis. The modified accrual basis recognizes expenditures at the point in time when the related fund liability is incurred, not necessarily when the liability is actually paid. Revenues are recognized when they become both measurable and available. “Measurable” means the amount of the transaction that can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Each fund is estimated prior to the end of the fiscal year utilizing the same basis of accounting that is used for the same fund within the final audited financial statements once the Fiscal Year is closed.

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Financial Policies Summary
Financial policies are essential and central to a strategic, long-term approach to financial management of the City by the elected officials and staff. Financial policies also create and define a shared understanding of how the City will develop its financial practices and manage its resources to provide the best value to the community and provide structure, boundaries and limits on the actions City staff may take.

The formal adoption of financial principles and policies promotes public confidence, enhances transparency and provides continuity over time.

The financial policies provide a structured, central repository for a variety of fiscal policies and are organized into the following categories including: General Financial Principles, Annual Operating Budget Policy, Capital Improvement Program, Revenues, Expenditures, Cash Management, Debt Management, Fund Balances, Financial Reporting, and Review and Updates. Additional financial policies that are approved separately from the financial policies include: the Reserve Policy, Investment Policy, Unfunded Accrued Liability Management Policy, Purchasing Policy and Capital Asset Policy. Please see the full financial policies attached below or on our city website here.

Reserve Policy
The Government Finance Officers Association (GFOA) recommends that city governments maintain an unrestricted General Fund balance of no less than 2 months of regular General Fund operating revenues or regular General Fund operating expenditures. This amounts to

16.7% of either General Fund operating revenues or regular General Fund operating expenditures. The reserve policy adopted by the Cotati City Council maintains a minimum of 25% of the annual operating expenses, thus exceeding the GFOA recommendations. This policy ensures there are funds available for significant, unanticipated events since these reserve funds can only be used with a majority vote of the City Council, and for specific circumstances (see Cotati Financial Policies attachment below, pages 5-11).

Investment Policy
The Investment Policy of the City guides investment of public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City, while conforming to all state and local statutes governing the investment of public funds (see Cotati Financial Policies attachment below, pages 70-82.

Unfunded Accrued Liability Management Policy
The Unfunded Accrued Liability Management Policy was added to the City in order to add fiscal discipline and promote future financial stability. This policy developed budgetary actions to facilitate accelerated payoff of future Unfunded Accrued Liabilities (UAL) and is structured to ensure that all pension funding decisions are structured to protect both current and future taxpayers, ratepayers, employees and residents of the City (see Cotati Financial Policies attachment below, pages 88-96).

Expenditure Planning and Purchasing Policy
The City Purchasing Policy outlines the purchasing procedures that apply to all City purchases, including proper procurement, competitive bidding, contract services, recycled products and local vendor preference, credit card management, and emergency exemptions (see Cotati Financial Policies attachment below, pages 22-52).

Capital Asset Policy
The Capital Asset Policy conveys the proper and approved financial treatment of expenditures for assets, and establishes thresholds in financial reporting. In addition, the asset policy defines specific controls over the safeguarding and maintenance of all assets in order to reduce the risks of loss through theft or mismanagement (see Cotati Financial Policies attachment below, pages 53-63).

Summary
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These policies will be updated periodically, but are designed with a long-term perspective and provide the basic framework and road map for addressing a wide variety of financial and economic conditions that the City will encounter. A fiscal policy supports long-term planning and enhances the City’s effectiveness in implementing long-term strategies to deliver efficient services to the public. See the attachment below for the adopted financial policies and financial procedures in place for the City of Cotati as of June 25, 2024, and proposed for update on June 10, 2025. The full document is also available on the City website here.

Attachments
Title Description
City of Cotati Financial Principles and Policies
06/25/2024
Consolidated Financial Principles and Policies for the City of Cotati. Adopted 06/25/2024.

City of Cotati Financial Principles and Policies
06/25/2025
Updated - Consolidated Financial Principles and Policies for the City of Cotati.

Proposed for Adoption 06/10/2025.

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Acronyms Table
Below is a list of general acronyms used by the City. Please see the full definition of any term within the Glossary of Budget Terms.

ABBREVIATED
FORM

FULL NAME

ACFR ANNUAL COMPREHENSIVE FINANCIAL
REPORT

ACH AUTOMATED CLEARING HOUSE

ADA AMERICANS WITH DISABILITIES ACT
CalPERS CALIFORNIA PUBLIC EMPLOYEES’

RETIREMENT SYSTEM
CDTFA

CALIFORNIA DEPARTMENT OF TAX & FEE

ADMINISTRATION

COLA COST OF LIVING ADJUSTMENT

CPI CONSUMER PRICE INDEX

ERAF EDUCATIONAL REVENUE AUGMENTATION
FUND

FPPC FAIR POLITICAL PRACTICES COMMISSION

FTE FULL-TIME EQUIVALENT

FY FISCAL YEAR

GAAP GENERALLY ACCEPTED ACCOUNTING

PRINCIPLES

GASB GOVERNMENTAL ACCOUNTING

STANDARDS BOARD

GFOA GOVERNMENT FINANCE OFFICERS

ASSOCIATION

ICMA INTERNATIONAL CITY MANAGEMENT

ASSOCIATION

LTP LAGUNA TREATMENT PLANT

LOCC LEAGUE OF CALIFORNIA CITIES

MOU MEMORANDUM OF UNDERSTANDING

MTC METROPOLITAN TRANSPORTATION

COMMISSION

OPEB OTHER POST-EMPLOYMENT BENEFITS

PCI PAVEMENT CONDITION INDEX

PERS PUBLIC EMPLOYEES RETIREMENT
SYSTEM

RPTT REAL PROPERTY TRANSFER TAX
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RPTTF REDEVELOPMENT PROPERTY TAX TRUST
FUND

RFP REQUEST FOR PROPOSAL

SCTA SONOMA COUNTY TRANSPORTATION

AUTHORITY

SMART SONOMA MARIN AREA RAIL TRANSIT

PROJECT

TOT TRANSIENT OCCUPANCY TAX
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Glossary of Budget Terms
Abatement: A reduction or elimination of a real or personal property tax, motor vehicle excise, a fee, charge, or special assessment imposed by a governmental unit. Granted only on application of the person seeking the abatement and only by the committing governmental unit.

Accounting System: The total structure of records and procedures that identify, record, classify, and report information on the financial position and operations of a governmental unit or any of its funds, account groups, and organizational components.

Accrued Interest: The amount of interest that has accumulated on the debt since the date of the last interest payment, and on the sale of a bond, the amount accrued up to but not including the date of delivery (settlement date). (See Interest) ACFR: Annual Comprehensive Financial Report - A detailed report of an organization's financial activities and performance over the fiscal year.

Amortization: The gradual repayment of an obligation over time and in accordance with a predetermined payment schedule.

Appropriation: A legal authorization from the community's legislative body to expend money and incur obligations for specific public purposes. An appropriation is usually limited in amount and as to the time period within which it may be expended.

Arbitrage: As applied to municipal debt, the investment of tax-exempt bonds or note proceeds in higher-yielding, taxable securities.

Section 103 of the Internal Revenue Service (IRS) Code restricts this practice and requires (beyond certain limits) that earnings be rebated (paid) to the IRS.

Assessed Valuation: A value assigned to real estate or other property by a government as the basis for levying taxes.

Assets: Items owned by an organization that have economic value, such as cash, investments, property, and equipment.

Audit: An examination of a community's financial systems, procedures, and data by a certified public accountant (independent auditor), and a report on the fairness of financial statements and on local compliance with statutes and regulations. The audit serves as a valuable management tool in evaluating the fiscal performance of a community.

Audit Report: Prepared by an independent auditor, an audit report includes: (a) a statement of the scope of the audit; (b) explanatory comments as to the application of auditing procedures; (c) findings and opinions. It is almost always accompanied by a management letter which contains supplementary comments and recommendations.

Available Funds: Balances in the various fund types that represent non-recurring revenue sources. As a matter of sound practice, they are frequently appropriated to meet unforeseen expenses, for capital expenditures or other one-time costs.

Balance Sheet: A statement that discloses the assets, liabilities, reserves and equities of a fund or governmental unit at a specified date.

Betterments (Special Assessments): Whenever a specific area of a community receives benefit from a public improvement (e.g., water, sewer, sidewalk, etc.), special property taxes may be assessed to reimburse the governmental entity for all or part of the costs it incurred.

Each parcel receiving benefit from the improvement is assessed for its proportionate share of the cost of such improvements. The proportionate share may be paid in full or the property owner may request that the assessors apportion the betterment over 20 years.

Over the life of the betterment, one year’s apportionment along with one year’s committed interest computed from October 1 to October 1 is added to the tax bill until the betterment has been paid.

Bond: A means of raising money through the issuance of debt. A bond issuer/borrower promises in writing to repay a specified sum of money, alternately referred to as face value, par value or bond principal, to the buyer of the bond on a specified future date (maturity date), together with periodic interest at a specified rate. The term of a bond is always greater than one year. (See Note) Table of Contents 3.9 Glossary
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Bond and Interest Record: (Bond Register) – The permanent and complete record maintained by a treasurer for each bond issue. It shows the amount of interest and principal coming due each date and all other pertinent information concerning the bond issue.

Bonds Authorized and Unissued: Balance of a bond authorization not yet sold. Upon completion or abandonment of a project, any remaining balance of authorized and unissued bonds may not be used for other purposes, but must be rescinded by the community's legislative body to be removed from the community's books.

Bond Issue: Generally, the sale of a certain number of bonds at one time by a governmental unit.

Bond Rating (Municipal): A credit rating assigned to a municipality to help investors assess the future ability, legal obligation, and willingness of the municipality (bond issuer) to make timely debt service payments. Stated otherwise, a rating helps prospective investors determine the level of risk associated with a given fixed-income investment. Rating agencies, such as Moody's and Standard and Poors, use rating systems, which designate a letter or a combination of letters and numerals where AAA is the highest rating and C1 is a very low rating.

Budget: A plan for allocating resources to support particular services, purposes and functions over a specified period of time. (See Performance Budget, Program Budget)
California Department of Tax and Fee Administration (CDTFA): The CDTFA is one of California's three main State taxing agencies and is responsible for collecting taxes and fees on various items and services, including sales and use, fuel, tobacco, alcohol and cannabis.

Capital Assets: All real and tangible property used in the operation of government, which is not easily converted into cash, and has an initial useful life extending beyond a single financial reporting period. Capital assets include land and land improvements; infrastructure such as roads, bridges, water and sewer lines; easements; buildings and building improvements; vehicles, machinery and equipment.

Communities typically define capital assets in terms of a minimum useful life and a minimum initial cost. (See Fixed Assets) Capital Budget: An appropriation or spending plan that uses borrowing or direct outlay for capital or fixed asset improvements. Among other information, a capital budget should identify the method of financing each recommended expenditure, i.e., tax levy or rates, and identify those items that were not recommended. (See Capital Assets, Fixed Assets) Cash: Currency, coin, checks, postal and express money orders and bankers’ drafts on hand or on deposit with an official or agent designated as custodian of cash and bank deposits.

Cash Flow: The movement of money into or out of an organization, showing its liquidity and ability to meet financial obligations.

Cash Management: The process of monitoring the ebb and flow of money in and out of municipal accounts to ensure cash availability to pay bills and to facilitate decisions on the need for short-term borrowing and investment of idle cash.

Certificate of Deposit (CD): A bank deposit evidenced by a negotiable or non-negotiable instrument, which provides on its face that the amount of such deposit plus a specified interest payable to a bearer or to any specified person on a certain specified date, at the expiration of a certain specified time, or upon notice in writing.

Classification of Real Property: Assessors are required to classify all real property according to use into one of four classes: residential, open space, commercial, and industrial. Having classified their real property, local officials are permitted to determine locally, within limitations established by statute and the Commissioner of Revenue, what percentage of the tax burden is to be borne by each class of real property and by private property owners.

Collective Bargaining: The process of negotiating workers' wages, hours, benefits, working conditions, etc., between an employer and some or all of its employees, who are represented by a recognized labor union, regarding wages, hours and working conditions.

Compliance: Adherence to relevant laws, regulations, and internal policies governing financial reporting and operations.

Consumer Price Index: The statistical measure of changes, if any, in the overall price level of consumer goods and services. The index is often called the "cost-of-living index."
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Cost-Benefit Analysis: A decision-making tool that allows a comparison of options based on the level of benefit derived and the cost to achieve the benefit from different alternatives.

Debt Burden: The amount of debt carried by an issuer, usually expressed as a measure of value (i.e., debt as a percentage of assessed value, debt per capita, etc.). Sometimes debt burden refers to debt service costs as a percentage of the total annual budget.

Debt Service: The repayment cost, usually stated in annual terms and based on an amortization schedule, of the principal and interest on any particular bond issue.

Encumbrance: A reservation of funds to cover obligations arising from purchase orders, contracts, or salary commitments that are chargeable to, but not yet paid from, a specific appropriation account.

Enterprise Funds: An enterprise fund is a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the portion of the total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy, if any. With an enterprise fund, all costs of service delivery — direct, indirect, and capital costs — are identified. This allows the community to recover total service costs through user fees if it chooses. Enterprise accounting also enables communities to reserve the "surplus" or net unrestricted assets generated by the operation of the enterprise rather than closing it out to the general fund at year-end. Services that may be treated as enterprises include, but are not limited to, water, sewer, hospital, and airport services.

Equalized Valuations (EQVs): The determination of the full and fair cash value of all property in the community that is subject to local taxation.

Equity: The residual interest in the assets of an organization after deducting liabilities, representing the owners' stake in the business.

Estimated Receipts: A term that typically refers to anticipated local revenues, often based on the previous year's receipts, and represents funding sources necessary to support a community's annual budget. (See Local Receipts) Exemptions: A discharge, established by statute, from the obligation to pay all or a portion of a property tax. The exemption is available to particular categories of property or persons upon the timely submission and approval of an application to the assessors. Properties exempt from taxation include hospitals, schools, houses of worship, and cultural institutions. Persons who may qualify for exemptions include disabled veterans, blind individuals, surviving spouses, and seniors.

Expenditure: An outlay of money made by municipalities to provide the programs and services within their approved budget.

Fiduciary Funds: Repository of money held by a municipality in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and other funds. These include pension (and other employee benefits) trust funds, investment trust funds, private-purpose trust funds, and agency funds.

Financial Statements: Reports summarizing an organization's financial activities and position, including the balance sheet, income statement, and cash flow statement.

Fiscal Year: The 12-month period for which an organization plans the use of its funds, typically not the same as the calendar year.

Fixed Assets: Long-lived assets such as buildings, equipment and land obtained or controlled as a result of past transactions or circumstances.

Fixed Costs: Costs that are legally or contractually mandated, such as retirement, FICA/Social Security, insurance, debt service costs or interest on loans.

Float: The difference between the bank balance for a local government’s account and its book balance at the end of the day. The primary factor creating float is clearing time on checks and deposits. Delays in receiving deposit and withdrawal information also influence float.

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Full Faith and Credit: A pledge of the general taxing powers for the payment of governmental obligations. Bonds carrying such pledges are usually referred to as general obligation or full faith and credit bonds.

Fund: An accounting entity with a self-balancing set of accounts that are segregated for the purpose of carrying on identified activities or attaining certain objectives in accordance with specific regulations, restrictions, or limitations.

Fund Accounting: Organizing financial records into multiple, segregated locations for money. A fund is a distinct entity within the municipal government in which financial resources and activity (assets, liabilities, fund balances, revenues, and expenditures) are accounted for independently in accordance with specific regulations, restrictions or limitations. Examples of funds include the general fund and enterprise funds. Communities whose accounting records are organized according to the Uniform Municipal Accounting System (UMAS) use multiple funds.

GAAP: Generally Accepted Accounting Principles - Standard accounting principles, standards, and procedures that companies use to compile their financial statements.

GASB 34: A major pronouncement of the Governmental Accounting Standards Board that establishes new criteria for the form and content of governmental financial statements. GASB 34 requires a report on overall financial health, not just on individual funds. It requires more complete information on the cost of delivering value estimates on public infrastructure assets, such as bridges, roads, sewers, etc. It also requires the presentation of a narrative statement of the government's financial performance, trends and prospects for the future.

GASB 45: This is another Governmental Accounting Standards Board major pronouncement that each public entity accounts for, and reports, other post-employment benefits in its accounting statements. Through actuarial analysis, municipalities must identify the true costs of the OPEB earned by employees over their estimated years of actual service.

General Fund: The fund used to account for most financial resources and activities governed by the normal appropriation process.

General Obligation Bonds: Bonds issued by a municipality for purposes allowed by statute that are backed by the full faith and credit of its taxing authority.

Governing Body: A board, committee, commission, or other executive or policymaking body of a municipality or school district.

Indirect Cost: Costs of a service not reflected in the operating budget of the entity providing the service. An example of an indirect cost of providing water service would be the value of time spent by non-water department employees processing water bills. A determination of these costs is necessary to analyze the total cost of service delivery. The matter of indirect costs arises most often in the context of enterprise funds.

Internal Controls: Policies and procedures implemented by an organization to ensure the reliability of financial reporting and compliance with laws and regulations, aiming to prevent fraud and errors.

Interest: Compensation paid or to be paid for the use of money, including amounts payable at periodic intervals or discounted at the time a loan is made. In the case of municipal bonds, interest payments accrue on a day-to-day basis, but are paid every six months.

Interest Rate: The interest payable, expressed as a percentage of the principal available for use during a specified period of time. It is always expressed in annual terms.

Investments: Securities and real estate held for the production of income in the form of interest, dividends, rentals or lease payments. The term does not include fixed assets used in governmental operations.

Liabilities: Debts or obligations owed by an organization, including loans, accounts payable, and accrued expenses.

Line Item Budget: A budget that separates spending into categories, or greater detail, such as supplies, equipment, maintenance, or salaries, as opposed to a program budget.

Local Aid: Revenue allocated by the state or counties to municipalities and school districts.

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Maturity Date: The date that the principal of a bond becomes due and payable in full.

Municipal(s): (As used in the bond trade). "Municipal" refers to any state or subordinate governmental unit. "Municipals" (i.e., municipal bonds) include not only the bonds of all political subdivisions, such as cities, towns, school districts, special districts, counties but also bonds of the state and agencies of the state.

Net Income: The difference between an organization's revenues and expenses, representing its profit or loss for a specific period.

Note: A short-term loan, typically with a maturity date of a year or less.

Objects of Expenditures: A classification of expenditures that is used for coding any department disbursement, such as “personal services,” “expenses,” or “capital outlay.”
Official Statement: A document prepared for potential investors that contains information about a prospective bond or note issue and the issuer. The official statement is typically published with the notice of sale. It is sometimes called an offering circular or prospectus.

Operating Budget: A plan of proposed expenditures for personnel, supplies, and other expenses for the coming fiscal year.

Overlapping Debt: A community's proportionate share of the debt incurred by an overlapping government entity, such as a regional school district, regional transit authority, etc.

Performance Budget: A budget that stresses output both in terms of economy and efficiency.

Principal: The face amount of a bond, exclusive of accrued interest.

Program: A combination of activities to accomplish an end.

Program Budget: A budget that relates expenditures to the programs they fund. The emphasis of a program budget is on output.

Proprietary Funds: Funds used to record the financial transactions of governmental entities when they engage in activities that are intended to recover the cost of providing goods or services to the general public on a user-fee basis.

Purchased Services: The cost of services that are provided by a vendor.

Refunding of Debt: Transaction where one bond issue is redeemed and replaced by a new bond issue under conditions generally more favorable to the issuer.

Reserve Fund: An amount set aside annually within the budget of a town to provide a funding source for extraordinary or unforeseen expenditures.

Revaluation: The assessors of each community are responsible for developing a reasonable and realistic program to achieve the fair cash valuation of property in accordance with constitutional and statutory requirements. The nature and extent of that program will depend on the assessors’ analysis and consideration of many factors, including, but not limited to, the status of the existing valuation system, the results of an in-depth sales ratio study, and the accuracy of existing property record information.

Revenues: Inflows of resources or other enhancements of assets of an organization, usually from sales of goods or services.

Revenue Anticipation Note (RAN): A short-term loan issued to be paid off by revenues, such as tax collections and state aid. RANs are full faith and credit obligations.

Revenue Bond: A bond payable from and secured solely by specific revenues and thereby not a full faith and credit obligation.

Revolving Fund: Allows a community to raise revenues from a specific service and use those revenues without appropriation to support the service.

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Sale of Real Estate Fund: A fund established to account for the proceeds of the sale of municipal real estate other than proceeds acquired through tax title foreclosure.

Stabilization Fund: A fund designed to accumulate amounts for capital and other future spending purposes, although it may be appropriated for any lawful purpose.

Surplus Revenue: The amount by which cash, accounts receivable, and other assets exceed liabilities and reserves.

Tax Rate: The amount of property tax stated in terms of a unit of the municipal tax base; for example, $14.80 per $1,000 of assessed valuation of taxable real and personal property.

Tax Title Foreclosure: The procedure initiated by a municipality to obtain legal title to real property already in tax title and on which property taxes are overdue.

Trust Fund: In general, a fund for money donated or transferred to a municipality with specific instructions on its use. As custodian of trust funds, the treasurer invests and expends such funds as stipulated by trust agreements, as directed by the commissioners of trust funds or by the community's legislative body. Both principal and interest may be used if the trust is established as an expendable trust. For nonexpendable trust funds, only interest (not principal) may be expended as directed.

Uncollected Funds: Recently deposited checks included in an account’s balance but drawn on other banks and not yet credited by the Federal Reserve Bank or local clearinghouse to the bank cashing the checks. (These funds may not be loaned or used as part of the bank’s reserves, and they are not available for disbursement.) Undesignated Fund Balance: Monies in the various government funds as of the end of the fiscal year that are neither encumbered nor reserved, and are therefore available for expenditure once certified as part of free cash.

Unreserved Fund Balance (Surplus Revenue Account): The amount by which cash, accounts receivable, and other assets exceed liabilities and restricted reserves. It is akin to a "stockholders’ equity" account on a corporate balance sheet. It is not, however, available for appropriation in full because a portion of the assets listed as "accounts receivable" may be taxes receivable and uncollected. (See Free Cash)
Valuation (100 percent): The legal requirement that a community’s assessed value on property must reflect its market, or full and fair cash value.

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GFOA Budget Award
The City of Cotati staff are the proud recipient of their sixth consecutive Distinguished Budget Award from the Government Finance Officers Association (GFOA).

This represents a significant achievement by the City and reflects the commitment of the City Council and staff to meet the highest principles of governmental budgeting. In order to receive the budget awards, the City had to satisfy nationally recognized guidelines.

These guidelines are designed to assess how well an entity's budget serves as:
• a policy document
• a financial plan
• an operations guide
• a communications device
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CSMFO Operating Budget Excellence Award
California Society of Municipal Finance Officers (CSMFO) is California’s premier statewide association that promotes excellence in financial management through innovation, continuing education and the professional development of its members. The CSMFO Budget Awards Program is designed to recognize those agencies that have prepared a budget document that meets the highest criteria and standards applied to municipal budgeting.

CSMFO Budget Award for Fiscal Year 2024/25
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Executive Overview
This overview provides a summary of the significant budgetary items and trends for the City of Cotati, as of budget adoption. As this is a summary, users of the budget should also refer to detailed information as provided within the fund and department summary pages. The City additionally provides a 'budget-in-brief' document as a very high-level summary of what is going on in our City right now and the financial implications.

City Government Highlights & Trends
Economic Outlook & Intergovernmental Considerations
Just over five years ago, the World Health Organization declared the COVID-19 outbreak a pandemic. Subsequently, in 2022, the economic environment was significantly impacted by the start of the Russia-Ukraine war and global inflation. In 2023, the US watched the collapse of three large banks, First Republic Bank, Silicon Valley Bank and Signature Bank, which were the largest banking failures since Washington Mutual in 2007-2008. Additionally, the US Treasury Curve remained inverted with the short-term rates increasing and longterm rates declining. Looking to 2025, economists are stating the economy does not indicate a coming national recession but rather decreased slow growth through 2025 and into 2026.

Global
The World Economic Outlook provided in April 2025, projects a significant change from the report provided in April 2024. The world economic outlook overall shows slow, stable growth worldwide of 2.8% in 2025 and 3% in 2026, which is lower than the 3.3% growth experienced in 2024. The most significant input for these changes was the shock to the global economies due to tariff rate escalations and policy priorities shifts. It is projected that with this growing uncertainty, inflation would decline at a slower pace than was projected in the prior year. As quoted in the report, "Risks to the global economy have increased, and worsening trade tensions could further depress growth. Financial conditions could tighten further as markets react negatively to the diminished growth prospects and increased uncertainty. While banks remain well capitalized overall, financial markets may face more severe tests. Growth prospects could, however, immediately improve if countries ease their current trade policy stance and forge new trade agreements." As some of these initial economic shocks have been softened by ongoing negotiations, they have already traumatized the overall global certainty for stability which was previously improving post COVID-19 and the Russian invasion of Ukraine. According to Deloitte in their economic update report on May 28, 2025, "What will happen to the global trading system if the United States withdraws? It is likely that the rest of the world will seek opportunities to expand trade among one another, looking for markets to replace the United States, which has been seen as the consumer of last resort. Yet, so long as the United States continues to be a low-saving country, especially due to a large fiscal budget deficit, it will need to import capital, which means it will retain a trade deficit. And with greater obstacles to importing goods, consumer and business purchasing power will likely decline, leading to slower economic growth." 1 1
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National
As provided by Beacon Economics in their Spring 2025 US Outlook, "The first 100 days of the second Trump administration has undoubtedly delivered a large shock to the U.S. economy." With the shocks ongoing, the probability of a recession in the next twelve months has increased in likelihood. The reason for the concern about a near-term recession is not necessarily due to the policy decisions of the current administration, but rather the underlying instability created by asset bubbles and ballooning government deficits. This was also a concern presented within the Congressional Budget Office (CBO) Long-Term budget Outlook:2025 to 2055. For the Federal Budget, the "Debt held by the public boosted by large deficits, reaches its highest level ever in 2029 (measured as a percentage of gross domestic product, or GDP) and then continues to grow, reaching 156 percent of GDP in 2055. It remains on track to increase thereafter.

Mounting debt would slow economic growth, push up interest payments to foreign holders of U.S. debt, and pose significant risks to the fiscal and economic outlook; it could also cause lawmakers to feel constrained in their policy choices." These large trends in deficit spending underpin structural faults that are being compared to the precursors of the great recession.

As of March 31, 2025,gross domestic product is a key measure of economic health. GDP is the monetary value of all finished goods and services made within a country during a certain period, and it is used to estimate the size of the economy. GDP growth year over year indicates a healthy economy, while slowing growth or an outright decline can be a cause for concern. Still, there are some concerning signs within the overall GDP growth data: personal consumption grew at its slowest rate in nearly two years, which may be a sign of shaky consumer confidence. This, combined with the slowdown in employment gains led the Federal Reserve (Fed) to pause a rate change at their most recent meeting on May 7, 2025. The Fed has a dual mandate requiring maximizing employment while holding prices steady.

The central bank typically aims to hold long-run inflation at an annual rate of 2%, as measured by the Personal Consumption Expenditures Price Index. These two goals are currently at odds, creating the need to wait for more information. Fed Chair Powell said that “the risks of higher unemployment and higher inflation appear to have risen, and we believe that the current stance of monetary policy leaves us well positioned to respond in a timely way to potential economic developments.” Nationally, the unemployment rate has slowly increased to 4.2% in April 2025 compared to 4.0% in May 2024. However, according to MorningStar, "federal workforce cuts, rapidly changing trade policy, and immigration policy shifts could cause the labor market to slow in the coming months." Along with slowing employment gains, the CBO is estimating population growth to slow over the next 30 years and, without increases again in immigration, the US population would begin to shrink in 2033. The US Bureau of Labor Statistics also shares income information on a national level. As of March 2025, personal income had increased by $116.8 billion (0.5 percent at a monthly rate) and disposable personal income (DPI) (personal income less personal current taxes) increased by $102.0 billion (0.5 percent). The increase in current-dollar personal income in April primarily reflected increases in compensation and proprietors' income.

State
Last year we shared that, "As goes the U.S. economy, so goes California’s." As big an economy as California is from a global perspective (5th or 6th depending on how you count it), the state still accounts for less than 15% of total U.S. output. As such, good economic conditions at the national level will keep California’s economy moving as well. The key question revolves around the quality of that growth. While this is still true, we are seeing more slowing insight for California continuing with the major factors being lack of housing production and the state budget deficit. The most immediate issue facing California is the continuing budget deficit, which, as of May 2025, the budget revision is approximately $12 billion. Most of this is because the State is projected to lose $16 billion in revenues due to economic uncertainty and tariff policy impacts but is having a hard time cutting back expenditures to meet the decline in projected revenues. Governor Gavin Newsom's budget focus was outlined at a recent press conference in May 2025 where he stated, "We’ve got a spending problem."
Beacon Economics spring outlook 2025 focused on the construction of housing and personal wealth in California, focusing on how "Permit issuance has slowed in the state, which has contributed to shifts in household formation patterns." Overall, while the number of households has increased, from about 13.2 million in 2020 pre-pandemic to 13.9 million in 2024, the average household size has declined from 2.96 to 2.75 over the same period. This is due to two key dynamics intersecting: a lack of new housing and rising real incomes.

Higher-income residents are able to afford to spread out and utilize smaller, separate households, while lower-income Californians are being priced out and leaving the state altogether. This is to the detriment of the economy because, "without enough new housing, population and labor force expansion can’t keep pace with a growing economy... If California lacks an abundant labor force due to housing shortages, industries like the service sector that rely heavily on labor will struggle to expand." 6 8
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County
According to the Sonoma County Economic Development Board , "Sonoma County’s economic growth is steady but unremarkable.

While job growth has picked up recently, it remains weaker compared to the state and national levels." For Sonoma County, consumer spending related to tourism is critical to the regional economy and has continued to increase during the post-pandemic. Visitor arrivals and spending will remain strong given a resilient U.S. labor market, and tourism spending on visitation to local wineries and breweries will provide another boost. Unfortunately, the region still suffers from demographic trends, specifically in housing and the aging population. Both factors are expected to contribute to a contraction in the growth. Our county continues to see an impact on the diversity of potential residents due to a combined lack of housing supply and unaffordability. According to the Moody's analysis, "Outmigration, largely because of affordability issues that have intensified in the last decade because of the blockbuster run of house price appreciation, will hamstring growth in various industries. Fortunately, there appears to be some respite in the future. House price appreciation will take a breather when more supply comes online as mortgage rates retreat. This will give time for incomes to catch up and bring affordability down, albeit slightly. Migration patterns, while still a net negative, are improving." As summarized by Moddy's Analysis , "Unfortunately, weak population growth will out-muscle the advantages of a high quality of life and an educated workforce, relegating the county to a slightly below-average performer relative to California... However, one upside is Sonoma County’s relative affordability compared with neighboring Napa County and most of the Bay Area. Combined with the mortgage rate lock-in effect, this will muffle out-migration slightly in the years ahead."
Cotati
Our city was not unaffected by the significant economic impacts both at the regional and statewide levels. While revenues have shown some ongoing softening and are continuing to project the slowing for fiscal year 2025/26 and 2026/27 budgeted revenues. This status quo is due to decreased consumer spending, leading to a reduction in sales tax as well as reduced water consumption continuing due to wet years and continued consumer conservation and budget tightening. Cotati is differentiated from the region due to lack of access to tourism spending to offset losses in other spending. The City is continuing to work strategically on economic development, including (1) supporting hotel development in order to create meaningful Transient Occupancy Taxes (TOT) income and bring visitors into local Cotati businesses to support our existing business community, (2) supporting the continued development of the cannabis industry in Cotati, which will provide new revenue through the local cannabis business tax, and (3) focusing on economic development in key areas of the City to support existing businesses and promote new development in the Northern Gateway, Highway 116 and the Train Depot area. This will make the city more resilient and aligned to the regional balance of economic factors as well as provide new services for residents. With this economic strategy in place, the City will be able to better serve its residents through resiliency gained with diversified, stable revenue into the future.

The City continues to focus on maintaining sufficient operating reserves, while securing and diversifying revenues to ensure revenue stability and to provide long-term funding for priority community services and infrastructure, and debt repayments. For citywide financials, Cotati is projecting $28.5M of revenue (including transfers and other sources) in FY2026 (a 6.7% increase over the prior year) and $25.3M of revenue in FY2027 (an 11.2% decrease compared to the FY2026 budget). Alternatively, City expenditures have been more directly impacted by global inflation. Overall, the City is projecting continued significant increases in costs related to insurance, materials, utilities, and other professional contract services. Budgeted expenditures (including transfers out and other uses) are projected to increase by

2.7% to $32.9M in FY2026, and then decrease by 20.3% to $26.2M in FY2027, when compared to the FY2026 budget. For more information, see fund summaries pages and department summaries pages.

In order to better evaluate the City's financial position, in spring 2024, City Staff prepared and presented projections over the next 10 years for the Cities General Fund with a Long-Range Financial Forecast which is available on the City Website here. 10 10
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General Funds Highlights and Trends
Total Operating Revenues for Fiscal Year 2025/26 are budgeted at $10.8M; a 1.7% increase over the Fiscal Year 2024/25 adopted budget. Total Operating Revenues for Fiscal Year 2026/27 are budgeted at $11.0M; a 2.8% increase over the Fiscal Year 2025/26 adopted budget. These increases are primarily due to moderate growth in tax and other revenues. The difference between operating revenues and total revenues is primarily related to revenues from other sources, including interfund debt service and transfers-in from other special revenues.

For operating revenues, most activities are static with slight increases in charges for services and property taxes with declines in other taxes which are primarily related to declines in cannabis business tax.

As Sales Tax and Property Tax are critical revenue streams, generating almost 80% of the total General Fund revenues, the City collaborates with third-party consultants who monitor the market to generate projections.

The City employs conservative estimates for all revenues and specifically service fees in both public works and community development, as future development projects are uncertain at this time.

Further details on major revenues for the General Fund are detailed within the Funding Sources Section of the budget book.

Total Operating Expenses for Fiscal Year 2025/26 are budgeted at $10.5M, a 6.02% increase over the Fiscal Year 2024/25 adopted budget. Total Operating Expenses for Fiscal Year 2026/27 are budgeted at $10.7M, a 1.8% increase over the Fiscal Year 2026/27 proposed budget and 7.9% increase from the FY 2024/25 adopted budget.

Adjusting for the one-time contribution, the budgetary increase is primarily due to:

General City-Wide Insurance is estimated to increase by 13%.

Staffing costs increased 8.7% based on budgeting for (1) Full Employment, (2) Negotiated MOU COLAs, (3) Scheduled Step Increases, (4) Continued Lump Sum payments to CalPERS.

Utilities, including electricity, water, the internet and phone are budgeted for an increase of about 12.0% due to increased rates for these services.

Other changes included in the historical balances include the increase in the 2021/22 actual was due to the $4.8M Additional Discretionary Payment (ADP) to CalPERS for the City's unfunded pension liability. It is estimated that the refunding of this debt could ultimately save the City Approximately $2.3 million over the next 23 years.

For more information on the General Fund Revenues, Expenditures, and Fund Balances, please see the detailed fund summary page.

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Enterprise Funds Highlights and Trends
Water Operating Fund
Total Operating Revenues for Fiscal Year 2025/26 are budgeted at $2.65M; a 7.4% increase over the Fiscal Year 2024/25 estimated actual budget. Total Operating Revenues for Fiscal Year 2026/27 are budgeted at $2.86M; a 9.8% increase over the proposed Fiscal Year 2025/26 budget. These increases are primarily due to increased fees from the proposed multi-year rate study commencing in FY2026.

Increased rates for both consumption and base fees as proposed to the City for approval as part of the multi-year rate study program. Water rates are determined by the cost of delivering water and maintaining infrastructure and equipment in order to properly treat and distribute water to our customers.

The City estimated slightly decreased water consumption for the Fiscal Years 2025/26 and 2026/27 due to conservation and continued rainfall, which has reduced the need for irrigation.

Development impact fees for connections have been budgeted very conservatively as development projects have uncertain timeframes for completion currently.

Total Operating Expenses for Fiscal Year 2025/26 are budgeted at $2.27M; a 5.9% increase over the Fiscal Year 2024/25 estimated actual budget. Total Operating Expenses for Fiscal Year 2026/27 are budgeted at $2.39M; a 5.2% increase from the proposed budget for 2025/26 and an 11.3% increase over the Fiscal Year 24/25 estimated actual budget.

Increased expenses related to other expense charges, specifically small tools and equipment, as well as charges for vehicle and equipment replacements.

Approximately 36.9% increased costs for Aqueduct Water Usage, which is primarily due to the Water Agency's rate increase.

Increases in allocated costs for insurance, contract services, and utilities, specifically electricity.

Capital and Other Uses for the proposed budget years 2025/26 and 2026/27 include:

Continuing Interfund Debt Service Back to General Fund for UAL Contribution Proposed Capital Project and Equipment Improvements:

Fiscal Year 2025/26 Fiscal Year 2026/27
Well 2 Renewal/Remediation - $215,000 T-1: New Cypress Storage Tank - $237,000 Water Renewal and Replacement Master Plan - $150,000 BP-1: Cypress Tank Booster Pumps - $114,300 Distribution System Monitoring - $130,000 Continuing - P-3, 4: Cypress Tank New Water Main - $180,000
Well 1A/Well 3 Treatment Renewal and Replacement -
$125,000
P-3, 4: Cypress Tank New Water Main - $80,000
Differences from the Rate Study Projections
Revenues, expenses, and fund balance are substantially inline with the rate study but with a fund balance expectation is approximately $200K lower than the studies' expectations. This decreased balance is primarily due to higher than anticipated operational expenditures in Fiscal Year 2024/25.

Sewer Operating Fund
Total Operating Revenues for Fiscal Year 2025/26 are budgeted at $3.69M; an 10.0% increase over the Fiscal Year 2024/25 estimated actual budget. Total Operating Revenues for Fiscal Year 2026/27 are budgeted at $4.06M; a 10.0% increase over the Fiscal Year 2025/26 proposed budget. These increases are primarily due to increased fees from the proposed multi-year rate study commencing in FY2026.

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Increased rates for both usage and base fees, as approved as part of the multi-year rate study programs. Wastewater rates are determined by the cost of processing wastewater and maintaining infrastructure and equipment.

The City estimates increased wastewater consumption in future years as the City continues to expand.

Reduced development impact fees for connections to City Services as development projects are uncertain at this time.

Total Operating Expenses for Fiscal Year 2025/26 are budgeted at $3.68M; a 4.2% decrease over the Fiscal Year 2024/25 estimated actual budget. Total Operating Expenditures for Fiscal Year 2026/27 are budgeted at $3.79M; a 3.1% increase over the Fiscal Year 2025/26 proposed budget. Expected changes to the expenditures when compared to the 2024/25 budget are primarily due to increased costs for wastewater treatment and subregional debt service paid to the wastewater treatment plant.

Capital and Other Uses for the proposed budget years 2025/26 and 2026/27 include:

Continuing Interfund Debt Service Back to General Fund for UAL Contribution Proposed Capital Project and Equipment Improvements:

FY 25/26 – Sewer Master Plan - $70K
FY 26/27 - Sewer Lift Station Renewal - $110K
Differences from the Rate Study Projections
Due to the decreased revenues and increased expenses, the overall fund operating deficit remains at approximately $105K higher than the Rate Study.

The City will continue to monitor the trends for both the Water and Sewer Funds against the rate study and look to updating the study if the fund balance for continued operations is projected to not meet the required 33% (unless accounted for in the approved rate study), or if revenues/expenditures significantly deviate from the rate study projections.

For more information on the Enterprise Funds Revenues, Expenditures, and Fund Balances, please see the detailed funds summary pages. Additionally, here, is the Cotati 2025 Water and Sewer Rate Study.

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Internal Service Funds Highlights and Trends
Vehicle Replacement Fund - For Fiscal Years 2025/26 and 2026/27, the vehicle replacement fund schedules replacements to be funded by other funds in order to cover maintenance costs as well as fleet replacement. This is calculated per the vehicle replacement schedule. The City is dedicated to environmentally conscious procurement and, as such, will continue evaluation of appropriate fleet purchases with possible cost-equivalent electric vehicles in place of standard gas combustion replacements.

Compensated Absences Fund – This fund was established for Fiscal Year 2019/20 to fund the payouts for compensated absences (primarily accrued employee leave and vacation time). For Fiscal Years 2025/26 and 2026/27, we are continuing to use this fund to reduce outstanding deferred compensation unfunded liability, as well as removing this episodic expense from the annual operating budgets.

For more information please see the detailed funds summary pages.

Capital Projects Funds Highlights and Trends
Continue to Prioritize City Infrastructure Projects. Consistent with budgeting during COVID-19 and with the continued financial uncertainty, the City has prioritized capital projects separating the highest priority projects (A) from next level projects, which will only move forward if available funding is identified (B). The following summary is of the budgeted (A) projects:

FY 2025/26 FY 2026/27
Street Improvements and Safety
for $3.1M
Street Improvements and Safety
for $2.5M
Park Improvements for $2.1M Park Improvements for $50K
Buildings Revitalization $693K Buildings Revitalization $0 Maximize Possible Grant Funding
See multi-year capital improvements plan for more details.

Street Improvement Project
Table of Contents 4.0 Budget Overview
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 57 359 of 791
Fiscal Year Comparisons
For Fiscal Year 2022/23, the City continued working on major capital projects, including over $5 million in street rehabilitation projects and street preservation programs. Along with the major investments in streets, the City initiated its first major park revitalization program in over 10 years at Kotate Park. City General funds were matched with over $260K in Parks Measure M funding in Local Special Parks Sales Taxes and $178K in Prop 68 funds from the State Grants. The City also invested $1.0 million in Civic Center improvements, including complete window replacement, insulation replacement, and repainting the building. Work also included re-stuccoing the east side of City Hall, facing West Sierra Avenue, including window replacement on this same side. For the enterprise funds, the City replaced over 1,000 liner feet of defective and undersized sewer pipe on West Sierra Avenue from Olof Street to Water Road. The project is identified in the City's detailed Sewer Master Plan, as well as the inflow and infiltration study. This project was also prioritized over other repairs because of the City's Quick Strike road paving project that followed the sewer main replacement.

For Fiscal Year 2023/24, the City continued working on major capital projects, including over $5 million in street rehabilitation projects and street preservation programs. Along with the major investments in streets, the City completed its first major park revitalization program in over 10 years at our Kotate Park and implemented free Wi-fi in La Plaza Park. The City continued to work on the design of updates to the remaining parks and collaborated with a local baseball league to revitalize two of the City's baseball fields. Construction continued on wayfinding sign replacements around the City, including new two-post entry-point sign replacements with a refreshed Welcome to Cotati arch at State Route 116 and Old Redwood Highway. With the enterprise funds, the City replaced and repaired sections of defective sewer pipe on Cypress Avenue in advance of the street roadway repair project.

For Fiscal Year 2024/25, the City continued focusing on the strategic objectives set out by the City Council to support a beautiful, safe, and stable City with a transparent government. Major projects include continued work on community safety projects, such as the sidewalk gap closures and bicycle and pedestrian safety projects. For street projects, the City completed the partially grant-funded Redwood Drive improvement as well as the 2026 Streets Improvement project. After the Kotate Park project completion in the prior year, the City has been continuing to move forward with improving our other parks. In this year, we have completed design of Putnam Park, Civic Center Park, and Sunflower Park, with Phase 1 construction of Putnam Park commencing. Additionally, the City has completed the schematic design of new barns at the Veronda-Falletti Ranch and intends to begin fund-raising next FY. Staff have also worked hard to continue to support community development across the City.

For Fiscal Years 2025/26 and 2026/27, the City is really focusing on maintaining operations at the level our community deserves, while trying to control operational expenditures with revenues uncertain in the current economic environment. With this uncertainty, the City is also striving to leverage possible cost savings on capital projects as other agencies potentially pull out of construction work, leading to a more favorable bidding environment for the City.

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Our Vision
Cotati will be a connected, resilient and inclusive city where we honor our past and shape our vibrant future together.

Our Mission
Thrive by building fiscal strength and engaging the community with excellent services, public safety and infrastructure.

Strategic Objectives
At the Strategic Planning Session on February 18, 2025, as well as the Budget Study session on April 1st, the City Council finalized the following Strategic Objectives. These goals and objectives were then utilized to focus on departmental goals, programs and projects.

1. Goal: Livability and Infrastructure

1. Objective: Excellent Public Infrastructure
i. Invest for continual improvement of the infrastructure a. Provide clean, well-maintained parks and public buildings that are community assets, exceed expectations and promote community gathering
b. Provide clean, well-maintained public streetscapes that exceed expectations c. Deliver clean, reliable drinking water, reduce water loss and improve conservation d. Provide well-maintained and reliable sewer systems
e. Provide a well-maintained storm drain system that improves water quality and prevents undesirable flooding f. Pursue grants and alternative funding sources

2. 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 the total cost of producing housing

3. 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 Table of Contents 4.1 Strategic Plan
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2. Goal: Balanced City Budget and Economic Development.

1. 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

2. Objective: Grow the Economy
i. Regional promotion to attract new businesses and development work with the 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

1. 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

1. 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

5. Goal: Promote an equitable, compassionate, and healthy community that honors diversity as a source of strength

1. 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.

2. Objective: Advance equity and health in the community i. Partner with Cotati residents and stakeholders, other jurisdictions, and non-governmental organizations.

Strategic Projects By Department
At the City Council Strategic Planning Session on February 18, 2025, and finalized on April 1, 2025, the City Council set forth the City Wide Strategic Projects with a new format clearly linking the projects with the City Objectives. The projects as evaluated by the Council are shown below and are also referenced in a summary format within each department.

Table of Contents 4.1 Strategic Plan

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City Managers Office
Table of Contents 4.1 Strategic Plan
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Administrative Services Department
Table of Contents 4.1 Strategic Plan

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Community Development Department
Table of Contents 4.1 Strategic Plan
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Public Works Department
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Police Department
Table of Contents 4.1 Strategic Plan
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Short-term Factors
City staff continue to be conservative in developing a budget that strives to improve service levels, while developing a phased capital project plan, and preserving appropriate operating reserves. In preparing departmental budgets for the new fiscal year, department directors are instructed to analyze their departmental goals and their correlating expenditures. This process includes an evaluation of each department for possible cost savings, cost sharing, or possibilities for grants/donations.

The Administrative Services Department assisted each department with calculations of key factors that were assumed to affect each individual department’s budget, including but not limited to:

Assist in revenue estimations based on known or anticipated developments and economic factors Human Resources adjustments due to labor agreements, pension payments, employee turnover due to retirements, and internal position changes.

Determining if new or ongoing contract services will have Citywide benefit, and therefore be allocated using a reasonable basis, or if the service is exclusively for a certain department and will therefore be charged directly to the lead department.

Estimating unknown expenditures for utilities, general insurance, or legal counsel.

Debt payments and tentative investment earnings
The 2025/26 and 2026/27 City budgets continue to recognize the need for strictly managing expenditures while balancing the preservation of existing high-quality programs and services while improving infrastructure to best meet the goals and priorities of the community.

Additional service level changes for the individual departments are described within the departmental summary sheets and planned investments in capital projects are included within the capital improvements section.

Table of Contents 4.2 Short-term Factors

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Strengths , Weaknesses, Opportunities,
and Threats
Table of Contents 4.2 Short-term Factors
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Priorities & Issues
The budget continues to meet the prudent financial reserve goals of City Council, which calls for a General Fund operating contingency reserve of not less than 25% of the total General Fund operating budget for the fiscal year (Resolution 2009-50). The adopted budget includes a reserve level that continues to exceed this goal set by City Council. Although the current year budget continues to meet the City Council reserve policy, the City still faces some medium and longer term challenges:

Cotati's Challenges
Although the current year budget continues to meet the City Council reserve policy, and Measure S was approved by voters, thus securing a vital City revenue source, due to economic uncertainty the City continues to face some medium and longer term challenges:

Economic Development: Due to anticipated slowdown in growth of Property Taxes due to the slowing Proposition 8 recapture and flat sales tax revenue, the City is focused on diversifying the current sources of revenue to provide a more stable and resilient general fund. Economic development also continues to grow the local economy, adds new goods and services locally, creates new jobs and contributes taxes to support services for our community. This is complemented by General Fund reserves, which provide financial stability and allow the City to respond to changes in revenue projections, expenditure needs, and unforeseen economic erosion or expansion. Both the City Managers Department and the Community Development department are continuing to develop ongoing strategies to diversify the revenues and continue to expand the appropriate growth in line with the City's character.

Staffing Continuity and Succession Planning: The City, like most local governments, struggles to maintain full employment in all positions. The issue is includes the loss of current staff, including senior employees retiring from the City and staff being recruited to move to other agencies. While full staffing is always a desire for the City, interest in positions with the City increases as unemployment increases. The City Managers' Office continues to work with each Department Director to provide enticing promotional information for recruiting.

Disaster Response: The City has been lucky over the last decade to have not been subject to the significant losses and destruction that impacted other major areas within Sonoma County. This does not mean that we are immune. While we have made significant investments in backup systems, we must make strategic plans to address possible future catastrophic impacts from public safety power shutoffs, fire, earthquake, ongoing drought, or even technology data breaches.

Cannabis Business Tax - Other cities in Sonoma County are moving to expand cannabis retail, which may negatively affect cannabis retail revenues in Cotati. Petaluma currently allows two delivery-only retailers and an unlimited number of manufacturing, processing and testing operations. Proposed changes include the addition of three storefront retailers.

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Long Range Financial Plans
Although the adopted budget is a biennial budget, the City is implementing tools to look beyond the two years, to make sure it can sustain operations and meet the long-term goals established in the comprehensive plan. To ensure long-term sustainability, the City's budgets follow these financial-related goals:

Maintain an operating reserve of at least 25% for the General Fund and 33% for the Enterprise Funds Continue implementing best financial practices
Use technology to streamline and automate business practices to help keep up with the demand for services Contribute full funding for annual UAL pension payments and implement the unfunded liability management policy.

In addition to the operational outlook, a capital plan has been developed to address the needed infrastructure for the next five years. The summary of the Long-Term Capital Plan can be found in the section after the long-term financial planning as well as within the Multi-Year Capital Improvements Section. Funding for these projects is also forecasted to understand the impact on future reserve levels and to identify where the funding source(s) have not yet been identified.

Attachments
Title Description
Cotati Long Range Financial Forecast
Long Range Forecast for the City of Cotati General Fund Covering 2024-2034.

This report is used as a planning and management tool.

Long-term Financial Planning
Long-term financial planning is the process of aligning financial capacity with long-term service objectives.

With this planning, the City can use simple forecasts to provide insight into future financial capacity in order to meet future objectives, including capital planning, as well as secure operations of core services in case of future instability. A Long-Range Financial Forecast was generated that evaluated three scenarios for developing plans to mitigate possible future threats to our financial standing.

Within scenario 1, the City generated a "Baseline" status quo forecast. The second scenario was a projection of results of what it would be like if the City expanded its revenue stream with the development of a hotel. The last scenario was a projection of the City's funds if a recession similar to the Great Recession were to recur next year. Below is a graphical summary of the effects on the General Fund under each scenario. Additionally, with the Baseline trend, we also have detail on the availability of funds to meet the 5-year Capital Improvement Plan.

This report is primarily a planning tool to be used by the City in order to stimulate discussion and decision-making, and provide focus for long-range perspectives. Below is a snapshot of the estimated revenue and expenditure projections for 5 years for the General Fund, as well as the combined Enterprise Funds.

Table of Contents 4.4 Long Range Financial Plans
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Table of Contents 4.4 Long Range Financial Plans

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Long Term Capital Planning
The first step in long-range capital planning is identifying community needs and desires. The City is continuing to develop ongoing capital asset life cycle replacement schedules including the Vehicle & Equipment Replacement Fund, as well as preparation of the 5-year Capital Improvement Program for both government and enterprise major infrastructure. City staff also analyze the assets that are noted for possible aging to determine when or if replacements are required. These schedules assist with programming the funds needed for the replacement or refurbishment of these major assets. Within the multi-year plan for capital improvements there is additional information to identify future service needs and maintenance, possible cost savings due to project implementation, as well as possible increases in revenue.

Other items that are considered when initiating major capital expenditures include the following:

Do these infrastructure improvements meet economic development needs or provide great public benefit? Does it meet City policy within the General Plan?
Did we incorporate input and participation from major stakeholders and the public? Will this project provide additional revenue-generating potential? What are the non-financial impacts of the project, including local and global environmental impacts? Table of Contents 4.4 Long Range Financial Plans
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Personnel Changes
For the Fiscal Years 2025/26 and 2026/27, the budget continues to reflect full staffing with no new changes to staffing.

Comparative Staffing Summary

FUNCTION / DEPARTMENTS
FY 22/23 FY 23/24 FY 24/25 FY 24/25 FY 25/26 & 26/27 FY 25/26 & 26/27 BUDGET BUDGET BUDGET EST.ACTUALS BUDGET CHANGE
Elected Officials 2.5 2.5 2.5 2.5 2.5 0.0
Staff Positions
City Manager 4.5 4.5 4.5 4.0 4.5 0.0
Administrative Services 5.5 5.5 5.5 5.5 5.5 0.0
Planning & Building 4.5 4.5 4.7 4.2 4.7 0.0
Public Works 9.0 8.5 8.5 8.5 8.5 0.0
Police Services 22.2 22.4 21.4 19.1 21.4 0.0
Recreation 2.7 2.7 2.7 2.7 2.7 0.0
Total Staff 48.4 48.1 47.3 44.0 47.3 0.0
Total City Officials and Staff 50.9 50.6 49.8 46.5 49.8 0.0 Table of Contents 4.5 Personnel Changes

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Staffing Detail by Department
FUNCTION / DEPARTMENT FY22/23 BU
FY23/24
BUDGET
FY24/25
BUDGET
FY24/25 EST.

ACTUALS
FY25/26 & 26/27
BUDGET
FY25/26 & 26/27
CHANGE
Elected Officials *
Mayor 0.5 0.5 0.5 0.5 0.5 0.0
Vice Mayor 0.5 0.5 0.5 0.5 0.5 0.0
Council Members 1.5 1.5 1.5 1.5 1.5 0.0
Total 2.5 2.5 2.5 2.5 2.5 0.0
Staff
City Manager *
City Manager 1.0 1.0 1.0 1.0 1.0 0.0
City Clerk 0.0 0.0 0.0 0.0 1.0 1.0
Deputy City Clerk 1.0 1.0 1.0 1.0 0.0 -1.0
Senior Management Analyst 1.0 1.0 1.0 1.0 1.0 0.0
Administrative Assistant 1.0 1.0 1.0 1.0 1.0 0.0
Intern 0.5 0.5 0.5 0.0 0.5 0.0
Total 4.5 4.5 4.5 4.0 4.5 0.0
Administrative Services *
Director of Admin. Services 1.0 1.0 1.0 1.0 1.0 0.0
Senior Accountant 1.0 1.0 1.0 1.0 1.0 0.0
Accountant 2.0 2.0 2.0 2.0 2.0 0.0
Account Clerk 1.0 1.0 1.0 1.0 1.0 0.0
Intern 0.5 0.5 0.5 0.5 0.5 0.0
Total 5.5 5.5 5.5 5.5 5.5 0.0
Planning & Building *
Community Development Dir. 1.0 1.0 1.0 1.0 1.0 0.0
Senior Planner 1.0 1.0 1.0 1.0 1.0 0.0
Associate Planner (PT) 0.5 0.5 0.6 0.6 0.6 0.0
Permit Tech 1.0 1.0 1.0 1.0 1.0 0.0
Planning Technician 0.5 0.5 0.6 0.6 0.6 0.0
Intern 0.5 0.5 0.5 0.0 0.5 0.0
Total 4.5 4.5 4.7 4.2 4.7 0.0
Public Works *
Director of Public Works 1.0 1.0 1.0 1.0 1.0 0.0
Civil Engineer 1.0 0.0 0.0 0.0 0.0 0.0
Administrative Analyst 0.0 0.0 0.0 0.0 0.0 0.0
Public Works Superintendent 1.0 1.0 1.0 1.0 1.0 0.0
Maintenance Worker III 0.0 1.0 1.0 0.0 1.0 0.0
Maintenance Worker II 2.0 1.0 1.0 2.0 1.0 0.0
Maintenance Worker I 2.0 2.0 2.0 2.0 2.0 0.0
Laborer 1.0 1.0 1.0 1.0 1.0 0.0
Engineering Technician 0.5 1.0 1.0 1.5 1.0 0.0
Intern 0.5 0.5 0.5 0.0 0.5 0.0
Total 9.0 8.5 8.5 8.5 8.5 0.0
Table of Contents 4.5 Personnel Changes
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 73 375 of 791
Police Services
Chief of Police 1.0 1.0 1.0 1.0 1.0 0.0
Lieutenant 0.0 1.0 1.0 1.0 1.0 0.0
Sergeant 3.0 2.0 2.0 2.0 2.0 0.0
Corporal 2.0 2.0 2.0 1.0 2.0 0.0
Officer 7.8 8.0 7.0 8.0 7.0 0.0
Community Services Officer 0.5 0.0 0.0 0.0 0.0 0.0
Police Services Specialist 0.0 0.0 0.0 0.0 0.8 0.8
Police Service Aide 0.8 0.8 0.8 0.8 0.0 -0.8
Dispatcher/Clerk 5.6 5.6 5.6 4.3 5.6 0.0
Records Analyst/Dispatcher 0.0 1.0 1.0 1.0 1.0 0.0
Reserve Officer I 1.5 1.0 1.0 0.0 1.0 0.0
Total 22.2 22.4 21.4 19.1 21.4 0.0
Recreation
Facilities/Recreation Manager 1.0 1.0 1.0 1.0 1.0 0.0
Recreation Coordinator 1.0 1.0 1.0 1.0 1.0 0.0
Recreation Leader 0.7 0.7 0.1 0.7 0.1 0.0
Camp Director 0.0 0.0 0.2 0.0 0.2 0.0
Camp Staff 0.0 0.0 0.4 0.0 0.4 0.0
Total 2.7 2.7 2.7 2.7 2.7 0.0
Total City Staff 48.4 48.1 47.3 44.0 47.3 0.0
Total City Officials and Staff 50.9 50.6 49.8 46.5 49.8 0.0 * Subject to allocation of labor to Enterprise and Fiduciary Funds.

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Appropriations Limit
Proposition 4, approved by the voters in November 1979, added the California Constitution, Article XIIIB. This article limits the level of most appropriations from tax sources that the state and most local government entities are permitted to make in any given year. The limit for each year is equal to the limit for the prior year, adjusted for changes in the cost-of-living and population plus other various adjustments as required. The first year in which appropriations limits applied to state and local governments in California was Fiscal Year (FY) 1980/81.

Establishing Appropriations Limits
"The City's limitation is calculated every year and is established by resolution of the City Council as part of the Annual Operating Budget. A City Resolution was proposed for approval on June 10, 2025, establishing the City of Cotati's appropriations limit.

The City's appropriations subject to the Gann Limit total $8,887,030, which is well below the authorized spending limit of $21,006,705.

Additional appropriations to the budget funded by non-tax sources such as beginning fund balances, grants or service charges are unaffected by the appropriations limit. Historically, the City's Annual Appropriations Limit has exceeded annual appropriations and the City projects the trend to continue into the future. As supported by historically trended data, the margin between the proceeds of taxes and an appropriations limit shows that there is little concern for the City exceeding the limit in the near future.

Table of Contents 4.6 Appropriations Limit
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Calculations
State of California Fiscal Year 2025/26 Population Change Per Capita Personal Income Sonoma County City of Cotati Fiscal Year
Percentage Change
overPrior Year (1)
Percentage Change
over Prior Year (1)
Percentage
Change over Prior
Year (1)
2025/26 6.44% 0.15% -0.86%
Per Capita Cost of Living Converted to Ratio: 6.44-100 = 1.0644 100
City of Cotati Population Converted to Ratio: 0.15+100 = 1.0015 100
Calculation Factor for FY 2025/2026: 1.0644 x 1.0015 = 1.0660 Fiscal Year 2024/2025 Appropriations Limit $19,706,102
Fiscal Year 2025/2026 Factor 1.0660
Fiscal Year 2025/2026 Appropriations Limit $21,006,705
It should be noted that the Appropriations Limit applies only to proceeds of taxes, as defined by the law and statewide reporting guidelines.

Tax Appropriations Subject to the Tax Appropriations Limit Tax Appropriations Total Budget for 202
Property Tax $2,146,280.00
Sales Tax 5,867,000
Other Tax 873,750
Total Appropriations Subject to Limit $8,887,030
Appropriations Subject to Limit $8,887,030
Fiscal Year 2025/2026 Appropriations Limit 21,006,705
Over/(Under) Appropriations Limit $(12,119,675)
Percentage Over/(Under) Limit -58%
(1) Department of Finance-Budgeting Resource Price and Population Factors Used For Appropriations Limit at: https://dof.ca.gov/Forecasting/Demographics/Estimates/2025-26.pdf or here DOF Factors Table of Contents 4.6 Appropriations Limit

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Historical & Estimated Future Limits
Fiscal
Year
Personal Income
Change
Population
Change
Growth
Factor
Annual
Adjustment
Appropriations
Limit
Historical Appropriations Limits
2024/25 1.0362 0.9973 1.0334 $636,911 $19,706,102
2023/24 1.0444 0.9947 1.0389 $714,016 $19,069,191
2022/23 1.0755 0.9847 1.0590 $1,022,621 $18,355,175
2021/22 1.0573 0.9899 1.0466 $771,734 $17,332,554
2020/21 1.0373 0.9875 1.0243 $392,881 $16,560,820
2019/20 1.0385 0.9960 1.0343 $536,171 $16,167,939
2018/19 1.0367 0.9978 1.0344 $519,848 $15,631,769
2017/18 1.0369 1.0050 1.0421 $610,292 $15,111,919
2016/17 1.0537 1.0053 1.0593 $811,607 $14,501,625
2015/16 1.0382 1.0084 1.0469 $613,559 $13,690,018
Future Year Estimates Appropriations Limit (2)
2026/27 1.0525 0.9908 1.0429 $900,233 $21,906,938
2027/28 1.0551 0.9915 1.0461 $1,009,208 $22,916,146
(2) Estimates calculated based on changes to both personal income and population change following a trending 5-year average.
(continued from above)
Table of Contents 4.6 Appropriations Limit
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GANN Limit Calculation Establishment -
Resolution 2025-XX
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Funding Sources Overview
The City’s primary funding source is the General Fund, which supports essential municipal services such as public safety, parks, and administration. Within the General Fund, the major revenue source is Sales Tax, including the voter-approved Measure S, which provides critical local funding for city operations. Property taxes represent the second-largest revenue stream, followed by other taxes such as Cannabis Business Tax, business license tax, and franchise fees.

In addition to the General Fund, the City operates Enterprise Funds for Water and Sewer services. These funds are self-supporting and are primarily funded by customer user fees, which are collected through regular water and sewer utility billing. These revenues are dedicated exclusively to supporting the operations, maintenance, and infrastructure needs of the respective utility systems. The operating budget document includes City-wide information as well as information specific to each fund and each department. The City receives revenue from numerous sources, many of which have restrictions on how they can be used. Separate funds are established to account for the different types of revenues and the allowable uses of those revenues. The annual budget information is available after the publication of the Adopted Budget.

Table of Contents 5.0 Funding Sources
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Property Tax
Property Taxes Summary
FY 2025/26 :
$2,146,280
FY 2026/27 :
$2,207,731
+$22,284 (+1.0% vs. prior year) +$61,451 (+2.9% vs. prior year) Property Taxes Proposed and Historical Budget vs. Actual These projected revenues for FY 2025/26 and FY 2026/27 are estimated to change based on the following factors. 2% Assessor’s applied CPI
Consistent change in the assessed value due to transfer of ownership Increases due to sales of residential and commercial new developments since FY 2019/20.

It does not include estimates of valuations for new developments.

The estimated actual property tax receipts for FY 2024/25 show an increase of 2.75% or approximately $58,000 from the Adopted Budget for 2024/25.

Comparing the Adopted Budget for FY 2024/25 to the Proposed Budget for FY 2025/26, property tax revenues are expected to increase by $22,284 or 1.0%. Revenues for FY 2026/27 are anticipated to increase by 2.9% or $61,451 when compared to the prior year budget.

Revenue Actual Revenue Budgeted
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
$2,000K
$2,500K
Table of Contents 5.1 Property Taxes

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Property Tax Dollar Distribution
A property tax is a levy on the assessed value of a property. The general property tax is levied by the county equal to 1% of the assessed value, often called the 1 percent general tax levy or countywide rate. Under Proposition 13, a law approved by California voters in 1978, general property taxes (not including those collected for special purposes) are limited to 1% of a property’s market value and increases in assessed value are restricted to 2% per year.

For example, for a home with an assessed value of $500,000, the property owner would be assessed approximately $5,000 a year in property taxes (1% of assessed value). Of the $5,000, the city would only receive a total of $532.50 (10.65% of the 1% assessed value) from the County. California's property taxes are collected by the County Tax Collector and are then transferred to the County Auditor for distribution to the multiple local governments.

The graphic below shows where each property tax dollar paid by City property owners is allocated.

Table of Contents 5.1 Property Taxes
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Sales Tax
Sales Taxes Summary
FY 2025/26 :
$5,867,000
FY 2026/27 :
$6,054,950
-$160,000 (-2.7% vs. prior year)
+$187,950 (+3.2% vs. prior
year)
Sales Taxes Proposed and Historical Budget vs. Actual
The City is projecting revenue from Sales Taxes for Fiscal Year 2025/26 to decline by approximately 2.7% or $160,000. This change is a conservative estimate based on evaluated potential economic uncertainty derived from threats of tariffs causing slower consumer spending, especially on goods subject to sales tax. The City also anticipates a continued decreased volume of transactions generated through the County Pool due to Amazon Distribution Center re-allocation of funding statewide. Revenues for 2026/27 are anticipated to increase by 3.2%.

Major industry groups within the City are Building/Construction, Fuel and Service Stations, Food and Drug, the County Pool, and Restaurants.

Revenue Actual Revenue Budgeted
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $2M
$4M
$6M
$8M
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Sales Tax Dollar Distribution
Sales tax is a tax paid on the sales of certain goods and services. Currently, the total sales tax rate in the City of Cotati is 10.25%. The City receives 2% in sales tax, with 1% Bradley‐ Burns and 1% Measure S. Sales tax from the Bradley‐Burns levy is allocated back to the City where the sale was negotiated, or the order was taken. On the other hand, the transactions and use tax, or Measure S, is allocated to the City where the goods are delivered or placed into use.

The graphics below show the breakdown of the City’s sales tax:

Table of Contents 5.2 Sales Tax
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 83 385 of 791
Other Taxes Including Cannabis Business
Tax Summary
Revenues by Source
FY 2025/26 :
$873,750
FY 2026/27 :
$911,000
+$121,250 (+16.1% vs. prior
year)
+$37,250 (+4.3% vs. prior year)
Other Taxes
Transfer tax is a transaction fee imposed on the transfer of land or real property from one person (or entity) to another. The total transfer tax for the County and City is $1.10 ($0.55 County / $0.55 City) per $1,000 of property value, minus any loans assumed in the sale.

Cannabis Business Tax is a local voter approved business tax for recreational cannabis businesses. These tax rates are based on several factors, including gross receipts, license type and business segment.

Transient occupancy tax (TOT) is a levy placed on tourists to the City, which is intended to compensate local government for the increased public service costs incurred by serving tourists. This tax is common in most of the United States, including California, and is applied to travelers when they rent accommodations (a room, rooms, entire home, or other living space) in a hotel, inn, tourist home or house, motel, or other lodging. At this time, Cotati is the only City in Sonoma County without TOT funding, due to the absence of lodging facilities.

Taxes
$724K
$679K
$795K
$753K
$874K $911K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $250K
$500K
$750K
$1,000K
Table of Contents 5.3 Other Taxes Including Cannabis Business Taxes

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Licenses, Permits, Rents and Other
Agency Fees
Revenue Summary
FY 2025/26 :
$1,143,086
FY 2026/27 :
$1,182,509
+$212,813 (+22.9% vs. prior
year)
+$39,423 (+3.4% vs. prior
year)
Licenses, Permits, Rents and Other Agency Fees Proposed and Historical Budget vs. Actual The City is projecting an increase in revenue from these sources. The increases from the Fiscal Year 2024/25 budget are primarily due to increased rental activity for City Facilities. The Recreation Department has been actively making the facilities available to our community.

Other increases in revenues from other agencies are primarily because of renegotiated agreements for shared services provided by the City of Cotati to Sonoma State University.

Licenses, Permits, and Franchises are subject to multiple factors for changes in revenues. For franchise agreements, increases are primarily based on negotiated contracts. Whereas Licenses and Permits are subject to rate changes as included within the City Code.

These rate changes are offset by changes in consumer activity and the volume of licenses or permits applied for in a given fiscal year.

Revenue Actual Revenue Budgeted
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $250K
$500K
$750K
$1,000K
$1,250K
$1,500K
Table of Contents 5.4 Licenses, Permits, Rents and Other Agency Fees Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 85 387 of 791
Revenues by Source
Licenses, Permits and Franchises
A business license is a tax payment to the city for doing business in that city. Cities collect fees from business license applicants and place the majority of the fees into the general fund for the administration of city services, such as police, road work, parks and recreation, and other community services that benefit citizens and businesses.

A utility franchise is a contract between a city and a utility or garbage company that outlines certain requirements for the utility to use the city’s public rights of way and for the garbage company to have exclusive rights to provide garbage service. The establishment of franchise agreements between cities and utilities or garbage companies is a customary business practice and legal process outlined by the state constitution.

Rent
Revenue received from the rental of City-owned facilities.

Revenue from Other Agencies
These revenues are amounts received from other local and state agencies.

Licenses, Permits & Franchises Other Agency Rents
FY26 Revenues by Source
Licenses, Permits & Franchises $782,800 68.48%
Other Agency $231,541 20.26%
Rents $128,745 11.26%
FY27 Revenues by Source
Licenses, Permits & Franchises $809,800 68.48%
Other Agency $238,864 20.20%
Rents $133,845 11.32%
$874K
$974K
$1M
$930K
$1M $1M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K

1.14M 1.18M
Table of Contents 5.4 Licenses, Permits, Rents and Other Agency Fees

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Category
FY 2023
Actual
FY 2024 Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($ Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Licenses, Permits &
Franchises
$718,839.82 $771,770.99 $597,400.00 $747,755.00 $782,800.00 $185,400.00 31.03% $809,800.00 Rents $102,863.32 $136,948.07 $114,000.00 $122,000.00 $128,745.00 $14,745.00 12.93% $133,845.00 Other Agency $151,897.32 $300,964.62 $218,870.00 $241,343.00 $231,541.00 $12,671.00 5.79% $238,864.00 Total Revenues $973,600.46 $1,209,683.68 $930,270.00 $1,111,098.00 $1,143,086.00 $212,816.00 22.88% $1,182,509.00 Revenues by Source
Table of Contents 5.4 Licenses, Permits, Rents and Other Agency Fees Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 87 389 of 791
Departments Summary
The City operates through a number of departments, each with distinct responsibilities that support the overall functioning of local government and community services.

City Council
Serving as the governing board for the City, the City Council sets policy direction, adopts the budget, and provides overall leadership and oversight of the City’s operations.

City Manager’s Office
The City Manager’s Office is responsible for the day-to-day administration and overall coordination of City departments and services. Under this office is the Recreation Division, which organizes recreational classes, community events, and manages facility and park rentals for public use.

Administrative Services Department
This department oversees the City’s financial operations, including budgeting, payroll, accounts payable, purchasing, and compliance reporting. It also manages monthly water and sewer billing, business licensing, and information technology (IT) services to support the organization’s internal systems and external service delivery.

Community Development Department
Focused on the City’s growth and development, this department oversees building, planning, and economic development activities.

Whether you’re applying for a building permit or exploring how to start a business in the City, this is the go-to department for support and guidance.

Police Department
The Police Department is dedicated to ensuring the safety and security of the community. In addition to providing dispatch services for both the City and Sonoma State University, the department offers services such as vacation house checks, alarm permit tracking, and is home to Dolly, a trained scent dog who assists in locating missing individuals.

Public Works Department
Public Works is responsible for water and sewer utility operations, engineering review and project management, and the maintenance of City infrastructure, including streets, parks, public buildings, and stormwater systems. They play a key role in keeping the City’s essential services and facilities running smoothly.

Table of Contents 6.0 Departments Summary

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Department and Fund Relationships
In addition to the General Fund and Enterprise Funds, the City maintains a number of Special Revenue Funds that are restricted for specific purposes, such as transportation, public safety, affordable housing, and environmental programs. These funds are directly managed by the City’s departments, with each Department Director responsible for the planning, budgeting, and oversight of the funds under their area of service.

The accompanying graphic illustrates the alignment between each department and the special revenue funds they manage, providing a clear view of organizational accountability and programmatic authority. This structure ensures that funds are used efficiently and in accordance with their legal or voter-approved purposes, while also promoting transparency and departmental responsibility in the management of restricted revenues.

Table of Contents 6.0 Departments Summary
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 89 391 of 791
City Council
Ben
Ford
Mayor
Department Description
The City Council is the five-member policy and legislative body of the City. The City Council of Cotati operates under the Council-Manager form of government, with five Council members elected at-large for staggered four-year terms.

The City Council, through the administrative authority of the City Manager, is responsible for the operation of the City, by setting policies and adopting City-wide goals and priorities. The City Council formulates policies in the form of motions, resolutions, and ordinances, which reflect the interests, needs, and priorities of the citizens and businesses of Cotati, as well as the visitors to the City of Cotati.

The City Council meets twice a month in regular session, conducts special meetings and study sessions as needed, and attends regional coordination meetings with other local government agencies.

Please find more information on City Council Public Meetings Here.

City Council Strategic Planning session in advance of budget Council Priority Setting Workshop on January 21, 2025. Watch here: https://cotaticity.primegov.com/Portal/Meeting?
meetingTemplateId=6933
City Council Recognizes Asian American and Pacific Islander Month, By Proclaiming May 2025 as AAPI Month in the City of Cotati
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Organizational Chart
The City Council members are elected by the voters of Cotati to serve four-year terms. The mayor and vice mayor is selected annually from among the City Council Members. The Mayor is charged with running the City Council meetings and the Vice Mayor will act as Presiding Officer in the absence of the Mayor. City Council adopted policy that establishes the adopted The City Council appoints the City Manager and the City Attorney, who report directly to the City Council. The City Council also appoints the members of the City’s advisory commissions and committees.

City Council Members serve on various Boards and Commissions for the City. They also serve on outside agency boards or commissions.

A list of the different city boards as well as the outside agencies that council members may serve on is located here.

Meet Your City Council
Ben Ford
Mayor
[email protected]
/ (707) 792-4600 Ext.
196
Sylvia Lemus
Vice Mayor
[email protected]
/ (707) 792-4600 Ext.
201
Susan Harvey
Council Member
[email protected]
/ (707) 792-4600 ex.
193
Laura Sparks
Council Member
[email protected]
/ (707) 792-4600 Ext.
194
John T. Savage
Council Member
[email protected]
/ (707) 792-4600 Ext.
202
Table of Contents 6.1 City Council
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 91 393 of 791
Expenditures by Expense Type
FY 2025/26 :
$172,515
FY 2026/27 :
$210,991
-$11,091 (-6.0% vs. prior
year)
+$38,476 (+22.3% vs. prior
year)
Budgeted and Historical Expenditures by Expense Type
Benefits Contract Services Other Expense
Contributions Salaries Utilities
Materials and Supplies Repairs and Maintenance
The City Council budget reflects the costs associated with supporting the Council’s activities and providing for the operations of the City.

The decrease in expenditures for Fiscal Year 2025/26 is primarily the result of a decrease in health benefits due to the mid-term appointment of an alternate Council member. The increase in expenditures for Fiscal Year 2026/27 is primarily derived from increases in allocated services, including contract professional services and insurance. $175K
$141K $136K
$184K
$173K
$211K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $100K
$200K
$300K
Table of Contents 6.1 City Council

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FY26 Expenditures by Expense Type
Contract Services $51,665 29.95%
Benefits $49,120 28.47%
Other Expense $29,371 17.03%
Contributions $25,000 14.49%
Salaries $9,360 5.43%
Utilities $6,280 3.64%
Materials and Supplies $1,279 0.74%
Repairs and Maintenance $440 0.26%
FY27 Expenditures by Expense Type
Contract Services $68,051 32.25%
Benefits $52,430 24.85%
Other Expense $45,131 21.39%
Contributions $25,000 11.85%
Salaries $9,360 4.44%
Utilities $6,650 3.15%
Repairs and Maintenance $3,050 1.45%
Materials and Supplies $1,319 0.63%
173K 211K
Table of Contents 6.1 City Council
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 93 395 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Materials and Supplies $1,362 $1,344 $884 $1,584 $1,279 $395 44.68% $1,319 Contract Services $47,618 $35,532 $54,100 $52,235 $51,665 -$2,435 -4.50% $68,051 Repairs and Maintenance - - - - $440 - - $3,050
Utilities $5,448 $5,174 $6,000 $5,930 $6,280 $280 4.67% $6,650 Other Expense $24,809 $23,560 $28,762 $32,503 $29,371 $609 2.12% $45,131 Contributions - - $25,000 $25,000 $25,000 - 0.00% $25,000 Benefits $51,810 $60,216 $59,500 $54,500 $49,120 -$10,380 -17.45% $52,430 Salaries $10,102 $9,682 $9,360 $9,360 $9,360 - 0.00% $9,360 Total Expenditures $141,150 $135,508 $183,606 $181,112 $172,515 -$11,091 -6.04% $210,991 Expenditures by Expense Type
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City Manager's Department
Damien
O'Bid
City
Manager
Department Description
The City Manager/City Clerk Office provides for the efficient administration of the affairs of the City of Cotati including the following; support to the City Council including implementation and enforcement of the policies of the City Council, supervises all City Departments, manages human resources, maintains official City files including records of Council proceedings, disseminates public information, conducts municipal elections in accordance with California State Government Codes, negotiates and manages franchise agreements, administers the City’s mobile home rent stabilization ordinance, and oversees Economic Development, Recreation and Successor Agency.

Table of Contents 6.2 City Manager's Office
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 95 397 of 791
Organizational Chart
The City Manager is hired by the City Council and manages the day-to-day operations of the City, including oversight of all other departments and department managers. The Recreation Department is included under the City Managers Department. For more information on the other departments, please see their department-specific budget pages.

City Manager's Department
Damien O'Bid
City Manager
[email protected]
Kevin Patterson
Deputy City Clerk
[email protected]
Sonia Sanchez
Administrative Assistant
[email protected]
City Mangers Office Intern
(Vacant)
Katie Duran
Sr. Management Analyst
[email protected]
Recreation Department
-See separate org. chart.
in the Recreation Dept
Table of Contents 6.2 City Manager's Office

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Fiscal Year 2024/25 Project Accomplishments
Table of Contents 6.2 City Manager's Office
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 97 399 of 791
Expenditures by Expense Type
FY 2025/26 :
$999,592
FY 2026/27 :
$969,916
+$143,602 (+16.8% vs. prior
year)
-$29,676 (-3.0% vs. prior
year)
Budgeted and Historical Expenditures by Expense Type
Salaries Benefits Contract Services
Other Expense Payout Utilities
Materials and Supplies Repairs and Maintenance Debt Service FY26 Expenditures by Expense Type
Salaries $463,860 46.57%
Contract Services $306,026 30.73%
Benefits $155,520 15.62%
Other Expense $28,833 2.90%
Payout $17,040 1.71%
Utilities $13,820 1.39%
Materials and Supplies $9,553 0.96%
Repairs and Maintenance $1,300 0.13%
FY27 Expenditures by Expense Type
Salaries $475,010 48.97%
Contract Services $252,255 26.01%
Benefits $163,300 16.84%
Other Expense $29,560 3.05%
Payout $17,460 1.80%
Utilities $14,600 1.51%
Materials and Supplies $9,831 1.01%
Repairs and Maintenance $7,900 0.81%
$978K
$690K $712K
$856K
$996K $970K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
996K 970K
Table of Contents 6.2 City Manager's Office

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Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Payout $53,398 $1,020 $12,320 $13,640 $17,040 $4,720 38.31% $17,460 Materials and Supplies $4,349 $3,672 $3,213 $3,213 $9,553 $6,340 197.32% $9,831 Contract Services $80,545 $135,271 $196,825 $395,178 $306,026 $109,201 55.48% $252,255 Repairs and Maintenance $369 - - $70 $1,300 - - $7,900
Utilities $9,911 $10,790 $12,140 $13,080 $13,820 $1,680 13.84% $14,600 Other Expense $41,099 $41,512 $43,432 $54,851 $28,833 -$14,599 -33.61% $29,560 Benefits $119,826 $144,857 $155,400 $153,178 $155,520 $120 0.08% $163,300 Salaries $380,175 $374,397 $432,660 $384,185 $463,860 $31,200 7.21% $475,010 Total Expenditures $689,672 $711,518 $855,990 $1,017,395 $995,952 $139,962 16.35% $969,916 Expenditures by Expense Type
Table of Contents 6.2 City Manager's Office
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 99 401 of 791
Administrative Services Department
Angela Courter
Director of
Administrative Services
Department Description
The Administrative Services Department serves to support the financial management and reporting of the City, including: collection and disbursement of all City funds; processing payroll disbursements as well as related reporting, withholding and payroll benefits management; accounts payable processing; billing and collection of water, sewer, business license, and developmental user fees; maintenance of general ledgers and journals; investments of the City’s idle funds; purchasing; information systems oversight and support; development and maintenance of long term economic impact analyses; budget preparation and administration; financial reporting; audit liaison and coordination, and oversight of the City Risk Management Program.

Organizational Chart
- Angela Courter is the current Director of Administrative Services and reports directly to the City Manager. She has served the City in this position since August 2019, and has been with the City of Cotati since 2016, when she originally joined as the Senior Accountant, after almost 10 years in public accounting.
- Neil Tomlinson is the Senior Accountant and has been with the City since 2013. - Accountant, Rosie Speranza joined us in February 2021. - Accountant, Paola Conde-Frendo joined us in October 2022. - Account Clerk, Kacie Moline joined us in September 2024. - Administrative Services Intern, Lana Ouk joined us in February 2025. - During FY2023/24, the Department brought on our first Intern since before the COVID-19 outbreak. We look forward to continuing using this position to engage with local students and inspire trust and appreciation for local government.

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Administrative Services Department
Angela Courter
Director of Administrative
Services
[email protected]
Neil Tomlinson
Senior Accountant
[email protected]
Rosie Speranza
Accountant
[email protected]
Paola Conde-Frendo
Accountant
[email protected]
Kacie Moline
Account Clerk
[email protected]
Lana Ouk
Administrative Services
Intern (PT)
[email protected]
Table of Contents 6.3 Administrative Services Department Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 101 403 of 791
Fiscal Year 2024/25 Project Accomplishments
Expenditures by Expense Type
FY 2025/26 :
$549,770
FY 2026/27 :
$579,398
+$18,610 (+3.5% vs. prior
year)
+$29,628 (+5.4% vs. prior
year)
Budgeted and Historical Expenditures by Expense Type
Salaries Contract Services Benefits
Administrative Fee Other Expense Utilities
Payout Materials and Supplies Repairs and Maintenance
Debt Service
$482K
$422K
$503K
$531K $550K
$579K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $200K
$400K
$600K
$800K
Table of Contents 6.3 Administrative Services Department

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FY26 Expenditures by Expense Type
Salaries $235,620 42.86%
Contract Services $161,186 29.32%
Benefits $63,950 11.63%
Administrative Fee $44,980 8.18%
Other Expense $22,511 4.09%
Utilities $10,150 1.85%
Payout $9,230 1.68%
Materials and Supplies $2,143 0.39%
FY27 Expenditures by Expense Type
Salaries $242,920 41.93%
Contract Services $165,421 28.55%
Benefits $67,320 11.62%
Administrative Fee $58,250 10.05%
Other Expense $21,863 3.77%
Utilities $10,680 1.84%
Repairs and Maintenance $6,050 1.04%
Payout $4,730 0.82%
Materials and Supplies $2,164 0.37%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Payout $4,287 $2,478 $9,680 $3,510 $9,230 -$450 -4.65% $4,730 Materials and Supplies $2,987 $1,441 $1,147 $2,447 $2,143 $996 86.84% $2,164 Contract Services $91,375 $144,027 $155,080 $148,379 $161,186 $6,106 3.94% $165,421 Repairs and Maintenance - - $2,500 - - -$2,500 -100.00% $6,050 Utilities $5,072 $5,969 $6,540 $9,650 $10,150 $3,610 55.20% $10,680 Other Expense $14,824 $21,174 $23,093 $29,912 $22,511 -$582 -2.52% $21,863 Administrative Fee $44,579 $47,487 $43,280 $58,100 $44,980 $1,700 3.93% $58,250 Benefits $61,132 $67,814 $70,020 $87,314 $63,950 -$6,070 -8.67% $67,320 Salaries $197,396 $212,189 $219,820 $209,725 $235,620 $15,800 7.19% $242,920 Total Expenditures $421,651 $502,581 $531,160 $549,037 $549,770 $18,610 3.50% $579,398 550K 579K
Expenditures by Expense Type
Table of Contents 6.3 Administrative Services Department Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 103 405 of 791
Community Development
Noah Housh
Director of Community
Development
Department Description
The Community Development Department is responsible for managing the Planning, Building, Housing and Code Enforcement Divisions for the City, while also supporting the Economic Development efforts of the City Manager's Office.

The Planning Division provides staff and technical support toward developing and implementing land-use, planning and zoning policies and programs that guide City growth, as well as ensuring all City actions are compliant with the California Environmental Quality Act.

The Building Division provides for public health and safety, promoting code compliance and improvements in the community through building inspections and plan review.

The Housing Division assists with the management of the City's affordable housing stock and ensures on-going compliance with the City's affordable housing programs.

Finally, Code Enforcement works with the citizens of Cotati to maintain a safe, attractive and high-quality community
environment by ensuring compliance with all adopted City codes and standards.

Organizational Chart
The Community Development staffing is a unique structure based on the distinct needs of Cotati, as a relatively small full-service City.

To address these needs, and remain flexible and responsive to changes in the economy, the Community Development Department is currently supported by a number of part-time and/or contract employees to augment the full-time Department staff. These additional contractor functions are included in grey below while part time are indicated with the (Part-Time) subsequent to the title.

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Community Development Department
Noah Housh
Director of Community
Development
[email protected]
J.P. Harries
Senior Planner
[email protected]
Autumn Buss
Associate Planner (PT)
[email protected]
Vacant
Planning Tech (PT)
Building Official
(Outside Consultant)
Building Inspector
(Outside Consultant)
Code Enforcement Officer
(Outside Consultant)
Carla Duncan
Permit Technician
[email protected]
Table of Contents 6.4 Community Development Dept
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 105 407 of 791
Fiscal Year 2024/25 Project
Accomplishments
Expenditures by Department
Historical Expenditures by Department
Community Development Code Enforcement
$1M
$922K
$1M
$942K $969K $962K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
Table of Contents 6.4 Community Development Dept

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FY26 Expenditures by Department
Community Development $908,243 93.71%
Code Enforcement $61,000 6.29%
FY27 Expenditures by Department
Community Development $899,308 93.50%
Code Enforcement $62,540 6.50%
Category
FY 2022
Actual
FY 2023
Actual
FY 2024
Actual
FY 2025
Proposed
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 2027
Budgeted
Community Development $1,143,788 $839,124 $910,831 $901,168 $890,045 $908,243 $899,308 Code Enforcement $64,157 $82,634 $112,144 $41,000 $98,200 $61,000 $62,540 Total Expenditures $1,207,946 $921,758 $1,022,975 $942,168 $988,245 $969,243 $961,848 Expenditures by Object
Historical Expenditures by Object
Salaries Contract Services Benefits
Other Expense Utilities Materials and Supplies
Payout Repairs and Maintenance Administrative Fee
Debt Service Contributions
969K 962K
Expenditures by Department
$1M
$922K
$1M
$942K $969K $962K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
Table of Contents 6.4 Community Development Dept
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 107 409 of 791
FY26 Expenditures by Object
Salaries $484,500 49.99%
Contract Services $253,250 26.13%
Benefits $143,040 14.76%
Other Expense $62,921 6.49%
Utilities $13,570 1.40%
Payout $7,560 0.78%
Materials and Supplies $4,402 0.45%
FY27 Expenditures by Object
Salaries $491,930 51.14%
Contract Services $238,924 24.84%
Benefits $149,870 15.58%
Other Expense $50,934 5.30%
Utilities $14,330 1.49%
Repairs and Maintenance $7,450 0.77%
Materials and Supplies $4,535 0.47%
Payout $3,875 0.40%
Category
FY 2022
Actual
FY 2023
Actual
FY 2024
Actual
FY 2025
Proposed
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 2027
Budgeted
Payout $60 $1,606 $3,369 $6,670 $3,955 $7,560 $3,875
Materials and Supplies $4,114 $4,116 $1,484 $5,189 $5,189 $4,402 $4,535 Contract Services $237,276 $270,982 $342,727 $220,919 $309,337 $253,250 $238,924 Repairs and Maintenance - $152 $15 - - - $7,450
Utilities $8,583 $9,426 $10,489 $11,560 $12,850 $13,570 $14,330 Other Expense $46,002 $80,783 $103,809 $131,840 $69,419 $62,921 $50,934 Administrative Fee $728 $1,200 $1,100 - $1,200 - -
Debt Service $541 - - - - - -
Contributions - - $25 - - - -
Benefits $534,322 $131,691 $135,402 $138,450 $165,200 $143,040 $149,870 Salaries $376,321 $421,801 $424,554 $427,540 $421,095 $484,500 $491,930 Total Expenditures $1,207,946 $921,758 $1,022,975 $942,168 $988,245 $969,243 $961,848 969K 962K
Expenditures by Object
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Public Works and Engineering
Craig Scott
Director of Engineering and
Public Works
Department Description
The Public Works department operates and maintains the water, sewer, and storm water systems, roadways, City parks and buildings, and maintains its fleet of trucks and equipment and acts as first responders to emergency repairs to the City's infrastructure.

The Engineering division provides a wide range of services, including record-keeping, updating City engineering standards, ensuring water, sewer and stormwater regulations are met, creating and managing the Capital Improvement Program, issuing permits for construction on public right-of-way, conditioning and inspecting private development projects, and being the clearinghouse for questions on City infrastructure, procedures.

Engineering provides technical support to the City departments, responds to citizens' inquiries and requests regarding public infrastructure, performs development review and plan checks, performs engineering and construction management of capital improvement projects and provides mapping and engineering records support.

Table of Contents 6.5 Public Works and Engineering Department Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 109 411 of 791
Organizational Chart
The chart below shows the organizational structure of the Public Works and Engineering Department.

Public Works and Engineering Department
Craig Scott
Director of Public Works
and Engineering
[email protected]
Vacant
Public Works
Superintendent
Trevor Brown
Maintenance III
Grant Comini
Maintenance I
Timothy Hale
Laborer
Susan Wise
Maintenance II
Colin Devlin
Maintenance I
Engineering Division
Henry Babits
Engineering Tech
Alex Hadzess
Engineering Intern
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Expenditures Summary
FY 2025/26 :
$1,970,547
FY 2026/27 :
$1,884,980
+$232,061 (+13.3% vs. prior
year)
-$85,567 (-4.3% vs. prior
year)
Expenditures by Department
Budgeted and Historical Expenditures by Department
Public Works - Parks Public Works - Streets Public Works - Govt. Buildings Public Works - Engineering Public Works - Storm Water Mgnt.

FY26 Expenditures by Department
Public Works - Parks $735,667 37.33%
Public Works - Streets $644,664 32.71%
Public Works - Govt. Buildings $288,468 14.64%
Public Works - Engineering $172,486 8.75%
Public Works - Storm Water Mgnt. $129,263 6.56%
FY27 Expenditures by Department
Public Works - Parks $728,443 38.64%
Public Works - Streets $589,982 31.30%
Public Works - Govt. Buildings $285,304 15.14%
Public Works - Engineering $155,940 8.27%
Public Works - Storm Water Mgnt. $125,311 6.65%
$2M
$1M
$1M
$2M
$2M $2M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M

1.97M 1.88M
Table of Contents 6.5 Public Works and Engineering Department Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 111 413 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Public Works - Engineering $193,966 $151,077 $150,116 $167,763 $172,486 $22,370 14.90% $155,940 Public Works - Streets $434,101 $450,718 $605,810 $649,958 $644,664 $38,854 6.41% $589,982 Public Works - Storm Water
Mgnt.
$91,820 $103,639 $124,756 $113,066 $129,263 $4,507 3.61% $125,311 Public Works - Govt.

Buildings
$139,845 $194,582 $220,866 $240,000 $288,468 $67,602 30.61% $285,304 Public Works - Parks $449,317 $525,691 $636,938 $704,449 $735,667 $98,729 15.50% $728,443 Total Expenditures $1,309,049 $1,425,707 $1,738,486 $1,875,236 $1,970,547 $232,061 13.35% $1,884,980 Expenditures by Department
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Expenditures by Expense Type
Historical Expenditures by Expense Type
Contract Services Salaries Utilities
Benefits Repairs and Maintenance Other Expense
Materials and Supplies Capital Outlay Payout
Debt Service
FY26 Expenditures by Expense Type
Contract Services $810,566 41.13%
Salaries $382,260 19.40%
Utilities $310,650 15.76%
Repairs and Maintenance $178,790 9.07%
Benefits $173,420 8.80%
Other Expense $56,059 2.84%
Materials and Supplies $41,518 2.11%
Payout $17,284 0.88%
FY27 Expenditures by Expense Type
Contract Services $772,741 40.99%
Salaries $390,850 20.73%
Utilities $335,860 17.82%
Benefits $182,760 9.70%
Repairs and Maintenance $96,289 5.11%
Other Expense $57,773 3.06%
Materials and Supplies $42,132 2.24%
Payout $6,575 0.35%
$2M
$1M
$1M
$2M
$2M $2M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M

1.97M 1.88M
Table of Contents 6.5 Public Works and Engineering Department Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 113 415 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Payout $19,465 $17,828 $17,690 $17,210 $17,284 -$406 -2.30% $6,575 Materials and Supplies $55,146 $54,115 $37,743 $42,243 $41,518 $3,775 10.00% $42,132 Contract Services $545,352 $536,571 $621,019 $757,940 $810,566 $189,547 30.52% $772,741 Repairs and Maintenance $44,619 $66,099 $59,700 $156,435 $178,790 $119,090 199.48% $96,289 Utilities $205,620 $218,563 $277,130 $287,400 $310,650 $33,520 12.10% $335,860 Other Expense $61,738 $60,339 $42,904 $66,006 $56,059 $13,155 30.66% $57,773 Debt Service - - $30 $30 - -$30 -100.00% -
Capital Outlay - - $147,610 $13,421 - -$147,610 -100.00% - Benefits $115,238 $139,781 $175,660 $169,721 $173,420 -$2,240 -1.28% $182,760 Salaries $261,871 $332,413 $359,000 $364,830 $382,260 $23,260 6.48% $390,850 Total Expenditures $1,309,049 $1,425,707 $1,738,486 $1,875,236 $1,970,547 $232,061 13.35% $1,884,980 Expenditures by Expense Type
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Police Department
Chris
Simmons
Chief of Police
Welcome to the Cotati Police Department
Department Description
As your Chief of Police, I am honored and humbled by the opportunity to serve alongside the dedicated men and women of the Cotati Police Department and the community to whom we strive to deliver exceptional public safety service.

Our fundamental mission is to protect the health and well-being of the community by partnering with our citizens, business partners, and stakeholders to sustain a safe and secure living and visiting environment. Our promise to continuously earn and improve public trust through equity, empathy, and accountability is paramount to this ambition.

Cotati is a safe and vibrantly friendly city due to profound community support for our department. The strong partnership we share with our community is made possible by the pledge we have made to proactively seek out opportunities to enhance meaningful relationships between our staff and residents, and diligently listen and respond to their needs in ways that value diversity and inclusion.

All of us at the Cotati Police Department are honored every day to provide superior service for our residents with pride and professionalism. We are humbled by the responsibilities entrusted upon us, and in turn, promise to carry out those duties with compassion, diligence, and the highest of ethical standards.

Table of Contents 6.6 Police Department
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 115 417 of 791
Organizational Chart
Current staffing at the police department consists of the following staff. The Chief of Police reports directly to the City Manager, Damien O'Bid.

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Fiscal Year 2024/25 Accomplishments
Table of Contents 6.6 Police Department
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 117 419 of 791
Expenditures by Expense Type
FY 2025/26 :
$5,381,939
FY 2026/27 :
$5,595,760
+$229,635 (+4.5% vs. prior
year)
+$213,821 (+4.0% vs. prior
year)
Budgeted and Historical Expenditures by Expense Type
Salaries Benefits Contract Services
Other Expense Utilities Repairs and Maintenance
Capital Outlay Payout Materials and Supplies
Administrative Fee Debt Service
FY26 Expenditures by Expense Type
Salaries $2,871,350 53.35%
Benefits $1,018,610 18.93%
Contract Services $974,643 18.11%
Other Expense $190,458 3.54%
Repairs and Maintenance $128,700 2.39%
Utilities $121,430 2.26%
Payout $43,820 0.81%
Materials and Supplies $17,368 0.32%
Administrative Fee $15,560 0.29%
FY27 Expenditures by Expense Type
Salaries $3,005,370 53.71%
Benefits $1,072,590 19.17%
Contract Services $1,015,925 18.16%
Other Expense $178,401 3.19%
Utilities $128,570 2.30%
Repairs and Maintenance $116,168 2.08%
Payout $45,140 0.81%
Materials and Supplies $17,916 0.32%
Administrative Fee $15,680 0.28%
$8M
$4M
$5M
$5M $5M $6M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M
$10M

5.38M 5.6M
Table of Contents 6.6 Police Department

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Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Payout $58,872 $85,283 $65,060 $25,415 $43,820 -$21,240 -32.65% $45,140 Materials and Supplies $28,096 $18,392 $20,072 $20,072 $17,368 -$2,704 -13.47% $17,916 Contract Services $785,384 $907,189 $1,094,505 $1,021,115 $974,643 -$119,862 -10.95% $1,015,925 Repairs and Maintenance $68,781 $59,691 $142,000 $71,000 $128,700 -$13,300 -9.37% $116,168 Utilities $91,499 $102,446 $111,940 $114,730 $121,430 $9,490 8.48% $128,570 Other Expense $201,539 $148,314 $128,377 $158,770 $190,458 $62,081 48.36% $178,401 Administrative Fee $5,472 $2,481 $12,900 $12,900 $15,560 $2,660 20.62% $15,680 Debt Service - - $4,600 $4,600 - -$4,600 -100.00% -
Capital Outlay $31,550 $275,967 $78,000 $20,000 - -$78,000 -100.00% - Benefits $805,574 $961,896 $1,069,250 $1,059,265 $1,018,610 -$50,640 -4.74% $1,072,590 Salaries $2,001,312 $2,114,554 $2,425,600 $2,274,420 $2,871,350 $445,750 18.38% $3,005,370 Total Expenditures $4,078,078 $4,676,214 $5,152,304 $4,782,287 $5,381,939 $229,635 4.46% $5,595,760 Expenditures by Expense Type
Table of Contents 6.6 Police Department
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 119 421 of 791
Recreation
Ashley
Wilson
Recreation
Manager
Department Description
This department is used for funding recreation activities including, but not limited to, yearround classes and programs, camps, trips and tours and special events.

Recreation staff also manage rentals and services for City facilities, including City parks and City-owned buildings. Currently, Recreation also manages the County Veteran's Memorial Hall through a pilot program.

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Organizational Chart
The Recreation Department is managed by the City Managers Department and the Recreation Manager reports directly to the City Manager, Damien O'Bid. Most part-time seasonal staff are local high school students who are responsible for assisting with the implementation of Camp Cotati. Camp activities include games, crafts, science, cooking, drama, and sports with an emphasis on skill development, cooperation, and promoting enthusiasm in camp activities.

Recreation Department
Ashley Wilson
Recreation Manager
[email protected]
Kelly Betts
Recreation Coordinator
[email protected]
Recreation Leaders
Seasonal PT (3-4)
Camp Director
Seasonal PT (Vacant)
Assistant Camp Director
Seasonal PT (Vacant)
Table of Contents 6.7 Recreation Department
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 121 423 of 791
Expenditures by Expense Type
FY 2025/26 :
$508,729
FY 2026/27 :
$542,943
+$6,297 (+1.3% vs. prior
year)
+$34,214 (+6.7% vs. prior
year)
Budgeted and Historical Expenditures by Expense Type
Salaries Contract Services Benefits
Other Expense Utilities Materials and Supplies
Payout Repairs and Maintenance Contributions
Debt Service
This department is fully funded with the use of Measure S Sales taxes and has been adding new classes and programs for the community since the voters overwhelmingly voted for Measure G, the precursor to Measure S.

FY26 Expenditures by Expense Type
Salaries $240,440 47.26%
Contract Services $146,393 28.78%
Benefits $64,400 12.66%
Other Expense $33,768 6.64%
Utilities $11,910 2.34%
Payout $5,960 1.17%
Materials and Supplies $5,358 1.05%
Contributions $500 0.10%
FY27 Expenditures by Expense Type
Salaries $235,730 43.42%
Contract Services $180,063 33.16%
Benefits $67,450 12.42%
Other Expense $29,305 5.40%
Utilities $12,610 2.32%
Repairs and Maintenance $6,300 1.16%
Payout $6,110 1.13%
Materials and Supplies $5,375 0.99%
$601K
$414K
$465K
$502K $509K
$543K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $250K
$500K
$750K
509K 543K
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Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Payout $9,676 $4,062 $5,750 $2,870 $5,960 $210 3.65% $6,110 Materials and Supplies $5,528 $5,050 $5,168 $5,168 $5,358 $190 3.68% $5,375 Contract Services $114,306 $137,580 $163,616 $149,775 $146,393 -$17,223 -10.53% $180,063 Repairs and Maintenance - - $2,000 $2,000 - -$2,000 -100.00% $6,300 Utilities $8,091 $9,138 $10,390 $11,250 $11,910 $1,520 14.63% $12,610 Other Expense $17,040 $17,915 $37,518 $39,579 $33,768 -$3,750 -10.00% $29,305 Contributions - - $300 $300 $500 $200 66.67% -
Benefits $50,439 $64,673 $67,210 $69,409 $64,400 -$2,810 -4.18% $67,450 Salaries $208,705 $226,628 $210,480 $239,885 $240,440 $29,960 14.23% $235,730 Total Expenditures $413,784 $465,046 $502,432 $520,236 $508,729 $6,297 1.25% $542,943 Expenditures by Expense Type
Table of Contents 6.7 Recreation Department
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 123 425 of 791
Descriptions & Structure of City Funds
General Fund
One of the most commonly heard terms in municipal budget discussions is the General Fund. The General Fund is the largest fund that the City of Cotati maintains. The two major revenue sources for the General Fund are Sales Tax, and, to a lesser degree, Property Tax.

These revenue sources are dependent on the economic environment and can fluctuate from year to year.

Sales Tax - Cities and counties administered local sales tax ordinances with varying tax rates and exemptions until 1955, when the California Legislature passed the Bradley-Burns Uniform Local Sales and Use Tax Law. This law laid the groundwork for a sales tax system that authorizes the California Department of Tax and Fee Administration (CDTFA) to collect all sales and use taxes and distribute 1% of the sales tax to cities and counties. In November 2020, Cotati voters also approved Measure S, a 1% transactions and use tax. With state-wide sales tax plus various local and countywide sales taxes, the total sales tax rate in the City of Cotati is

10.25%. The city receives a total of 2% of the 10.25% in sales tax, with Bradley Burns and Measure S.

Property Tax - State statutes provide that the property tax rate be limited generally to 1% of market value, be levied only by the County, and be shared by applicable jurisdictions. The County of Sonoma collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to voter-approved debt. Property taxes are due on November 1 and March 1, and become delinquent on December 10 and April 10. The City receives property taxes pursuant to an arrangement with the County known as the "Teeter Plan". Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City.

Other Revenue - Other General Fund revenue sources are impacted by the economic environment, but not to the same degree as sales, property, and transaction and use taxes. These other sources include; Business License Tax, Permits and Franchises, Rents; Revenue from Other Agencies, Charges for Services, Transfers from Other Funds, Cannabis Business Tax, and Other Revenues.

Enterprise Funds
Enterprise Funds are for specific services that are funded directly through user fees. As the second-largest fund type in the City, the Enterprise Funds are fully self-supporting and are not subsidized by tax money from the General Fund. Cotati’s Enterprise Funds include Water Operating and Capital Funds (401 & 402) and Sewer Operating and Capital funds (404 & 405).

Special Revenue Funds
Special revenues are monies received for a specifically identified purpose. Examples are Gas Tax (203), MTC Streets (204), and Measure S Parks (225) funds.

Capital Projects
Capital project funds are financial accounts that are used to track the building, renovating, or purchase of; equipment, property, facilities, parks, and other infrastructure or information technology systems which are to be used as a public asset or to benefit the public. Examples of these funds for the City are Grants Fund (201), Capital Outlay (604), and Capital Projects (605).

Debt Service Fund
This is a new fund for the City which records the accumulation of resources and payment of principal and interest on general long-term obligations and payments on contractual obligations. These debt service payments are supported by operating transfers from the General Fund and Enterprise Funds.

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Internal Service Funds
Internal Service Funds account for activities that provide goods and services to other departments or funds on a cost-reimbursement basis.

Fiduciary Funds
The City fiduciary funds are made up of the private purpose trust fund as well as the Custodial Fund. The private purpose trust fund that accounts for all the assets, liabilities, and financial activities of the Successor Agency to the City's former Redevelopment Agency that was dissolved effective February 1, 2012. The Custodial Fund is the South Sonoma Business Park Assessment District, which facilitates a special assessment debt service charged to landowners for the financing provided to develop the business park.

Funds Summary Overview
The operating budget document includes City-wide information as well as information specific to each fund and each department. The City receives revenue from numerous sources, many of which have restrictions on how they can be used. Separate funds are established to account for the different types of revenues and the allowable uses of those revenues. The annual budget information is available after the publication of the Adopted Budget.

Major Funds
In line with GASB 34, the City defines major funds as funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of the corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds. Any other fund may be reported as a major fund if the government's officials believe that the fund is particularly important to financial statement users.

Table of Contents 7.0 Fund Summaries
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 125 427 of 791
City's Budget Major Funds
The City reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The City Capital Projects Fund consists of various types of financial resources that are utilized to build, renovate, or purchase equipment, property, facilities, including buildings, parks, information technology systems and non-water/sewer infrastructure which are to be used to benefit the public.

The 2022A Streets Projects consist of special lease bond funds to be used on street improvement projects.

The Lease Debt Service Fund is a new debt service fund established to refund unfunded pension liabilities.

The City reports the following major proprietary funds:

The Water Fund accounts for the operations of the City's water treatment and distribution system.

The Sewer Fund accounts for the operation of the City's wastewater collection activities.

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All Funds
This page is a summary of all the City Operations as included within the budget book, including enterprise funds like Water and Sewer.

This is provided for informational purposes only as these funds are properly segregated and maintained.

Summary
The City of Cotati is projecting $28.5M of revenue (including transfers in and other sources) in FY2026 (a 6.7% increase over the prior year) and $25.3M of revenue in FY2027 (an 11.2% decrease compared to the FY2026 budget). Budgeted expenditures (including transfers out and other uses) are projected to increase by 2.7% to $32.9M in FY2026, and then decrease by 20.3% to $26.2M in FY2027, when compared to the FY2026 budget.

Revenues vs Expenditures Summary
Revenue Actual Revenue Budgeted Expenses Actual Expenses Budgeted 2022 2023 2024 2025 2026 2027
0 $10M
$20M
$30M
$40M
$50M
Table of Contents 7.1 All Funds
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 127 429 of 791
Budget Summary by Fund
Table of Contents 7.1 All Funds

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Revenues by Fund
FY 2025/26 :
$28,500,826
FY 2026/27 :
$22,308,710
+$1,789,433 (+6.7% vs. prior
year)
-$3,192,116 (-11.2% vs. prior
year)
Historical Revenues by Fund
General Capital Projects Sewer Operating Fund
Grants Water Operating 2022A Project Fund
Lease Debt Service Fund Successor Agency Water Capital Fund ARPA 2021 SSBP Series 2019 Vehicle Replacement
Gas Tax Public Safety RMRA
Capital Outlay Compensated Absences Sewer Capital Reserve Traffic Mitigation Parks Measure M MTC Street
In-Lieu-Inclusionary Hsng Linkage - Affordable Hsng Community Facilities Dist Veterans Building Management PEG K-9 Program
Zone 8 - Park Meadows Park In Lieu Zone 9 - Santero Way Zone 2 - Quail Hollow Zone 10 - Altman Acres Disability Access And Education Revolving Fund In-Lieu Tree Fund Zone 7 - Garden Gate Zone 6 - Oak Knoll Zone 3 - Sommers Zone 1 - Valparaiso Vista Bed Tax
Zone 4 - Macklin I Zone 5 - Sierra Meadows CDBG
$34M $37M
$31M
$27M
$29M
$25M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $10M
$20M
$30M
$40M
Table of Contents 7.1 All Funds
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 129 431 of 791
FY26 Revenues by Fund
General $11,240,133 39.42%
Sewer Operating Fund $3,753,900 13.16%
Grants $3,711,329 13.01%
Water Operating $2,654,560 9.31%
Capital Projects $2,583,000 9.06%
Water Capital Fund $1,022,400 3.59%
Lease Debt Service Fund $810,000 2.84%
Vehicle Replacement $448,798 1.57%
Successor Agency $394,623 1.38%
SSBP Series 2019 $374,500 1.31%
Gas Tax $229,790 0.81%
RMRA $200,600 0.70%
Public Safety $197,800 0.69%
Capital Outlay $184,120 0.65%
MTC Street $143,530 0.50%
Parks Measure M $113,500 0.40%
Compensated Absences $110,600 0.39%
In-Lieu-Inclusionary Hsng $96,591 0.34%
Traffic Mitigation $64,300 0.23%
Sewer Capital Reserve $42,867 0.15%
Veterans Building Management $41,250 0.14%
Community Facilities Dist $40,200 0.14%
PEG $17,700 0.06%
K-9 Program $15,540 0.05%
Park In Lieu $11,500 0.04%
Linkage - Affordable Hsng $6,000 0.02%
Disability Access And Education
Revolving Fund
$3,500 0.01%
In-Lieu Tree Fund $800 0.00%
Bed Tax $700 0.00%
Zone 6 - Oak Knoll $500 0.00%
Zone 10 - Altman Acres $400 0.00%
Zone 3 - Sommers $400 0.00%
Zone 7 - Garden Gate $300 0.00%
Zone 1 - Valparaiso Vista $200 0.00%
Zone 9 - Santero Way $100 0.00%
Zone 8 - Park Meadows $100 0.00%
FY27 Revenues by Fund
General $11,551,768 45.61%
Sewer Operating Fund $4,113,300 16.24%
Water Operating $2,903,100 11.46%
Grants $1,520,760 6.00%
Capital Projects $1,250,000 4.94%
Lease Debt Service Fund $810,000 3.20%
Water Capital Fund $618,900 2.44%
Successor Agency $405,603 1.60%
SSBP Series 2019 $386,800 1.53%
Vehicle Replacement $264,100 1.04%
Gas Tax $224,560 0.89%
RMRA $200,200 0.79%
Public Safety $197,400 0.78%
Capital Outlay $183,020 0.72%
MTC Street $143,030 0.56%
Parks Measure M $112,900 0.45%
In-Lieu-Inclusionary Hsng $89,695 0.35%
Compensated Absences $88,920 0.35%
Traffic Mitigation $62,000 0.24%
Sewer Capital Reserve $51,867 0.20%
Veterans Building Management $48,604 0.19%
Community Facilities Dist $41,650 0.16%
K-9 Program $20,790 0.08%
PEG $17,300 0.07%
Park In Lieu $11,300 0.04%
Linkage - Affordable Hsng $5,000 0.02%
Disability Access And Education
Revolving Fund
$3,400 0.01%
In-Lieu Tree Fund $650 0.00%
Bed Tax $600 0.00%
Zone 6 - Oak Knoll $400 0.00%
Zone 10 - Altman Acres $300 0.00%
Zone 7 - Garden Gate $300 0.00%
Zone 3 - Sommers $300 0.00%
Zone 8 - Park Meadows $100 0.00%
Zone 1 - Valparaiso Vista $100 0.00%

28.5M 25.3M
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432 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($ Change)
FY 25 vs. FY
26 (%
Change)
FY 2027
Budgeted
Bed Tax $871 $1,844 $4,500 $3,070 $700 -$3,800 -84.44% $600 Developer Billing-CD - - - -$125,000 - - - -
Zone 1 - Valparaiso Vista $3,003 $2,929 $2,370 $2,370 $200 -$2,170 -91.56% $100 Parks Measure M $117,821 $112,641 $100,000 $115,520 $113,500 $13,500 13.50% $112,900 Zone 2 - Quail Hollow $26,514 $1,201 $1,480 $1,480 - -$1,480 -100.00% - Zone 3 - Sommers $2,766 $3,268 $2,502 $2,502 $400 -$2,102 -84.01% $300 Zone 4 - Macklin I $1,273 $1,277 $1,254 $1,254 - -$1,254 -100.00% - In-Lieu Tree Fund - $14,707 $500 $7,550 $800 $300 60.00% $650 Zone 5 - Sierra Meadows $1,152 $1,141 $1,108 $1,108 - -$1,108 -100.00% - Zone 6 - Oak Knoll $3,646 $4,338 $3,261 $3,261 $500 -$2,761 -84.67% $400 Zone 7 - Garden Gate $3,985 $4,578 $3,225 $3,225 $300 -$2,925 -90.70% $300 Zone 8 - Park Meadows $17,898 $17,589 $19,100 $19,100 $100 -$19,000 -99.48% $100 Zone 9 - Santero Way $13,235 $14,436 $12,600 $12,600 $100 -$12,500 -99.21% - Zone 10 - Altman Acres $5,774 $6,695 $5,530 $5,530 $400 -$5,130 -92.77% $300 Veterans Building
Management
- $24,872 $22,250 $35,200 $41,250 $19,000 85.39% $48,604 General $13,238,553 $11,938,593 $11,004,531 $11,407,680 $11,240,133 $235,602 2.14% $11,551,768 Grants $4,052,883 $4,472,049 $1,350,000 $1,985,336 $3,711,329 $2,361,329 174.91% $1,520,760 Gas Tax $199,286 $222,021 $212,235 $239,118 $229,790 $17,555 8.27% $224,560 MTC Street $83,350 $86,499 $82,000 $85,660 $143,530 $61,530 75.04% $143,030 Traffic Mitigation $163,550 $40,772 $64,000 $63,500 $64,300 $300 0.47% $62,000 Park In Lieu $1,760 $4,472 $10,000 $12,390 $11,500 $1,500 15.00% $11,300 PEG $20,177 $23,274 $20,000 $18,600 $17,700 -$2,300 -11.50% $17,300 Public Safety $190,050 $205,284 $164,000 $208,900 $197,800 $33,800 20.61% $197,400 K-9 Program $20,940 $18,520 $12,500 $6,355 $15,540 $3,040 24.32% $20,790 In-Lieu-Inclusionary Hsng $68,540 $93,661 $120,568 $140,477 $96,591 -$23,977 -19.89% $89,695 Community Facilities Dist $36,141 $40,970 $39,000 $38,000 $40,200 $1,200 3.08% $41,650 RMRA $170,412 $196,339 $193,000 $203,995 $200,600 $7,600 3.94% $200,200 Linkage - Affordable Hsng $92,953 $15,172 $11,000 $14,450 $6,000 -$5,000 -45.45% $5,000 SSBP Series 2019 $126,735 $128,843 $384,000 $374,500 $374,500 -$9,500 -2.47% $386,800 Disability Access And
Education Revolving Fund
$3,000 $4,283 $2,500 $4,070 $3,500 $1,000 40.00% $3,400 Successor Agency $997,377 $866,177 $388,424 $388,424 $394,623 $6,199 1.60% $405,603 Water Operating $2,106,828 $2,350,599 $2,370,900 $2,535,030 $2,654,560 $283,660 11.96% $2,903,100 Water Capital Fund $42,216 $63,432 $6,700 $47,880 $1,022,400 $1,015,700 15,159.70% $618,900 Sewer Operating Fund $2,938,131 $3,399,148 $3,445,300 $3,468,420 $3,753,900 $308,600 8.96% $4,113,300 Sewer Capital Reserve $48,733 $362,820 $103,100 $175,307 $42,867 -$60,233 -58.42% $51,867 Vehicle Replacement $2,747 $292,322 $338,000 $158,001 $448,798 $110,798 32.78% $264,100 Compensated Absences $224,188 $179,405 $119,480 $137,480 $110,600 -$8,880 -7.43% $88,920 Capital Outlay $183,476 $184,668 $184,500 $202,506 $184,120 -$380 -0.21% $183,020 Capital Projects $5,469,475 $4,959,754 $5,096,000 $4,717,473 $2,583,000 -$2,513,000 -49.31% $1,250,000 2022A Project Fund $5,727,026 $111,997 - - - - - -
Lease Debt Service Fund $669,877 $812,941 $809,975 $809,975 $810,000 $25 0.00% $810,000 Total Revenues $37,076,341 $31,285,530 $26,711,393 $27,532,297 $28,516,131 $1,804,738 6.76% $25,328,717 Revenues by Fund
Table of Contents 7.1 All Funds
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 131 433 of 791
Revenues by Source
The City-wide revenues and sources are developed using a combination of consulting support for Property Tax and Sales Tax forecasts, State governmental Detail Reports/Projections for certain special funds, as well as trend analysis based on historical and anticipated future factors, such as developments under construction or grant awards.

Historical Revenues by Source
Taxes Transfers In Charges for Services
Other Revenues Grants Licenses, Permits & Franchises
Recognized Obligation Payment Schedule (ROPS) Other Agency COPS GRANT-SLESA Rents Interfund Loan Payments Impact Fees
PSAF PROP 172 Customer Fees Debt Service
Development Fees Contributions Franchise Fees
Other Financing Sources
$34M $37M $31M
$27M $29M
$25M
---$$$222,,,000000000
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$20M
0 $20M
$40M
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434 of 791
FY26 Revenues by Source
Taxes $9,401,650 32.97%
Transfers In $6,659,394 23.35%
Charges for Services $6,650,187 23.32%
Other Revenues $2,390,922 8.38%
Grants $1,719,579 6.03%
Licenses, Permits & Franchises $782,800 2.75%
Other Agency $231,541 0.81%
Interfund Loan Payments $202,972 0.71%
Rents $168,995 0.59%
COPS GRANT-SLESA $124,000 0.43%
PSAF PROP 172 $72,000 0.25%
Customer Fees $51,000 0.18%
Contributions $25,230 0.09%
Debt Service $19,361 0.07%
Franchise Fees $16,500 0.06%
FY27 Revenues by Source
Taxes $9,685,421 38.24%
Charges for Services $7,272,606 28.71%
Transfers In $3,422,786 13.51%
Other Revenues $2,139,173 8.45%
Grants $1,065,000 4.20%
Licenses, Permits & Franchises $809,800 3.20%
Other Agency $238,864 0.94%
Interfund Loan Payments $204,407 0.81%
Rents $180,650 0.71%
COPS GRANT-SLESA $123,900 0.49%
PSAF PROP 172 $72,000 0.28%
Customer Fees $52,100 0.21%
Contributions $26,880 0.11%
Debt Service $18,830 0.07%
Franchise Fees $16,300 0.06%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Interfund Loan Payments - - $223,240 $201,580 $202,972 -$20,268 -9.08% $204,407 Taxes $9,096,751 $9,209,619 $9,340,031 $9,207,465 $9,401,650 $61,619 0.66% $9,685,421 Licenses, Permits &
Franchises
$718,840 $771,771 $597,400 $747,755 $782,800 $185,400 31.03% $809,800 Franchise Fees $19,439 $19,023 $20,000 $17,000 $16,500 -$3,500 -17.50% $16,300 Rents $102,863 $161,603 $135,000 $157,115 $168,995 $33,995 25.18% $180,650 Other Agency $151,897 $300,965 $218,870 $241,343 $231,541 $12,671 5.79% $238,864 PSAF PROP 172 $69,323 $77,748 $64,000 $86,000 $72,000 $8,000 12.50% $72,000 Other Revenues $3,950,553 $2,313,733 $2,360,074 $2,492,013 $2,390,922 $30,848 1.31% $2,139,173 Charges for Services $5,406,382 $5,954,673 $6,019,734 $6,145,906 $6,650,187 $630,453 10.47% $7,272,606 Grants $1,262,425 $1,431,930 $669,000 $809,347 $1,719,579 $1,050,579 157.04% $1,065,000 COPS GRANT-SLESA $136,415 $171,085 $100,000 $607,605 $124,000 $24,000 24.00% $123,900 Development Fees $87,695 - -$2,000 $2,000 - $2,000 -100.00% - Impact Fees - $11,046 - $50,740 - - - -
Debt Service $139,538 $73,428 $23,069 $23,158 $19,361 -$3,708 -16.07% $18,830 Contributions $5,770 $24,049 $20,000 $29,000 $25,230 $5,230 26.15% $26,880 Transfers In $14,998,080 $9,932,405 $6,881,475 $6,666,040 $6,659,394 -$222,081 -3.23% $3,422,786 Other Financing Sources $714 $2,131 - - - - - -
Customer Fees $58,831 $54,444 $41,500 $48,230 $51,000 $9,500 22.89% $52,100 Recognized Obligation
Payment Schedule (ROPS)
$870,826 $775,878 - - - - - -
Total Revenues $37,076,341 $31,285,530 $26,711,393 $27,532,297 $28,516,131 $1,804,738 6.76% $25,328,717

28.5M 25.3M
Revenues by Source
Table of Contents 7.1 All Funds
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 133 435 of 791
Expenditures by Fund
FY 2025/26 :
$32,919,407
FY 2026/27 :
$26,226,324
+$860,840 (+2.7% vs. prior
year)
-$6,693,083 (-20.3% vs. prior
year)
Historical Expenditures by Fund
General Capital Projects Sewer Operating Fund
Grants Water Operating Lease Debt Service Fund
2022A Project Fund Water Capital Fund Successor Agency
Vehicle Replacement Sewer Capital Reserve ARPA 2021
Traffic Mitigation SSBP Series 2019 Capital Outlay
Gas Tax Public Safety RMRA
Compensated Absences Parks Measure M MTC Street
Excess Bond Proceeds In-Lieu-Inclusionary Hsng Community Facilities Dist Zone 8 - Park Meadows Zone 9 - Santero Way PEG
Park In Lieu Veterans Building Management K-9 Program
Zone 10 - Altman Acres Zone 2 - Quail Hollow Bed Tax
Zone 7 - Garden Gate Zone 6 - Oak Knoll Zone 1 - Valparaiso Vista Zone 3 - Sommers Zone 4 - Macklin I In-Lieu Tree Fund
Zone 5 - Sierra Meadows Linkage - Affordable Hsng Disability Access And Education Revolving Fund CDBG Low/Mod Former RDA
$38M $40M
$35M $32M $33M
$26M
---$$$111666,,,444777999
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$20M
0 $20M
$40M
$60M
Table of Contents 7.1 All Funds

436 of 791
FY26 Expenditures by Fund
General $13,992,284 42.50%
Sewer Operating Fund $3,889,909 11.82%
Grants $3,711,329 11.27%
Water Operating $3,465,424 10.53%
Capital Projects $2,583,000 7.85%
Lease Debt Service Fund $810,000 2.46%
Water Capital Fund $700,000 2.13%
Capital Outlay $600,000 1.82%
Traffic Mitigation $468,000 1.42%
Vehicle Replacement $456,900 1.39%
Successor Agency $394,623 1.20%
SSBP Series 2019 $360,648 1.10%
Gas Tax $285,800 0.87%
MTC Street $280,000 0.85%
RMRA $205,000 0.62%
Public Safety $197,800 0.60%
Compensated Absences $131,010 0.40%
Parks Measure M $116,500 0.35%
Sewer Capital Reserve $70,000 0.21%
Veterans Building Management $41,250 0.13%
Community Facilities Dist $40,700 0.12%
Zone 9 - Santero Way $30,040 0.09%
Zone 8 - Park Meadows $19,390 0.06%
PEG $18,000 0.05%
K-9 Program $15,540 0.05%
Park In Lieu $11,500 0.03%
Zone 10 - Altman Acres $5,090 0.02%
In-Lieu-Inclusionary Hsng $5,000 0.02%
Zone 7 - Garden Gate $4,750 0.01%
Zone 2 - Quail Hollow $2,240 0.01%
Zone 1 - Valparaiso Vista $1,970 0.01%
Zone 3 - Sommers $1,440 0.00%
In-Lieu Tree Fund $1,400 0.00%
Zone 6 - Oak Knoll $1,240 0.00%
Bed Tax $900 0.00%
Zone 4 - Macklin I $440 0.00%
Zone 5 - Sierra Meadows $290 0.00%
FY27 Expenditures by Fund
General $12,070,805 46.03%
Sewer Operating Fund $3,949,571 15.06%
Water Operating $3,119,694 11.90%
Grants $1,520,760 5.80%
Capital Projects $1,250,000 4.77%
Lease Debt Service Fund $810,000 3.09%
Water Capital Fund $531,300 2.03%
Successor Agency $405,603 1.55%
Gas Tax $386,000 1.47%
Traffic Mitigation $376,760 1.44%
SSBP Series 2019 $360,347 1.37%
Vehicle Replacement $262,500 1.00%
RMRA $203,000 0.77%
MTC Street $200,000 0.76%
Public Safety $197,400 0.75%
Capital Outlay $180,000 0.69%
Sewer Capital Reserve $110,000 0.42%
Compensated Absences $92,820 0.35%
Veterans Building Management $48,604 0.19%
Community Facilities Dist $41,650 0.16%
Zone 9 - Santero Way $31,610 0.12%
K-9 Program $20,790 0.08%
Zone 8 - Park Meadows $20,470 0.08%
PEG $18,000 0.07%
Zone 10 - Altman Acres $5,370 0.02%
Zone 7 - Garden Gate $4,980 0.02%
Zone 2 - Quail Hollow $2,460 0.01%
Zone 1 - Valparaiso Vista $2,150 0.01%
Zone 3 - Sommers $1,560 0.01%
Zone 6 - Oak Knoll $1,330 0.01%
Zone 4 - Macklin I $470 0.00%
Zone 5 - Sierra Meadows $320 0.00%

32.9M 26.2M
Table of Contents 7.1 All Funds
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 135 437 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($ Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Bed Tax -$216 $125 $30,000 $37,835 $900 -$29,100 -97.00% - Zone 1 - Valparaiso Vista $1,151 $5,307 $2,845 $3,885 $1,970 -$875 -30.76% $2,150 Parks Measure M $343,147 $93 $180,000 $224,530 $116,500 -$63,500 -35.28% - Zone 2 - Quail Hollow $2,636 $3,696 $2,795 $3,105 $2,240 -$555 -19.86% $2,460 Zone 3 - Sommers $1,269 $1,726 $4,160 $4,150 $1,440 -$2,720 -65.38% $1,560 Zone 4 - Macklin I $2,031 $3,385 $2,980 $2,880 $440 -$2,540 -85.23% $470 In-Lieu Tree Fund - $3,210 $6,050 $18,515 $1,400 -$4,650 -76.86% - Zone 5 - Sierra Meadows $1,553 $2,785 $1,395 $1,335 $290 -$1,105 -79.21% $320 Zone 6 - Oak Knoll $2,530 $3,532 $4,100 $4,030 $1,240 -$2,860 -69.76% $1,330 Zone 7 - Garden Gate $1,691 $10,494 $5,685 $5,715 $4,750 -$935 -16.45% $4,980 Zone 8 - Park Meadows $29,778 $19,888 $26,670 $27,710 $19,390 -$7,280 -27.30% $20,470 Zone 9 - Santero Way $17,603 $22,379 $18,660 $31,030 $30,040 $11,380 60.99% $31,610 Zone 10 - Altman Acres $34,634 $4,592 $4,015 $5,545 $5,090 $1,075 26.77% $5,370 Veterans Building
Management
- $21,341 $22,250 $35,200 $41,250 $19,000 85.39% $48,604 General $11,977,355 $13,268,936 $14,007,146 $13,607,601 $13,992,284 -$14,862 -0.11% $12,070,805 Grants $4,019,745 $4,482,778 $1,350,000 $1,993,802 $3,711,329 $2,361,329 174.91% $1,520,760 CDBG $77 - - - - - - -
Gas Tax $140,365 $6,033 $205,800 $294,645 $285,800 $80,000 38.87% $386,000 MTC Street $284 $470 $75,000 $74,250 $280,000 $205,000 273.33% $200,000 Traffic Mitigation $96,161 $2,506 $362,000 -$2,000 $468,000 $106,000 29.28% $376,760 Park In Lieu -$584 $336 $90,000 $105,600 $11,500 -$78,500 -87.22% - PEG $14,630 $9,424 $68,000 $63,850 $18,000 -$50,000 -73.53% $18,000 Public Safety $215,656 $205,433 $170,000 $234,613 $197,800 $27,800 16.35% $197,400 K-9 Program $14,698 $18,593 $12,500 $7,100 $15,540 $3,040 24.32% $20,790 In-Lieu-Inclusionary Hsng -$14,500 $19,941 - -$1,960 $5,000 - - - Low/Mod Former RDA $4 - - - - - - -
Excess Bond Proceeds $36,182 $472,867 - - - - - -
Community Facilities Dist $54,868 $35,948 $39,500 $42,500 $40,700 $1,200 3.04% $41,650 RMRA $198,401 $196,510 $193,000 $190,600 $205,000 $12,000 6.22% $203,000 Linkage - Affordable Hsng -$1,076 $1,138 - - - - - -
SSBP Series 2019 $105,339 $100,957 $373,529 $360,648 $360,648 -$12,881 -3.45% $360,347 Disability Access And
Education Revolving Fund
-$104 $84 - -$100 - - - -
Successor Agency $237,962 $320,416 $410,778 $425,962 $394,623 -$16,155 -3.93% $405,603 Water Operating $1,990,770 $2,052,501 $2,371,042 $2,264,541 $3,465,424 $1,094,382 46.16% $3,119,694 Water Capital Fund $82,213 $107,883 $987,843 $144,543 $700,000 -$287,843 -29.14% $531,300 Sewer Operating Fund $3,448,666 $3,717,998 $3,853,156 $3,924,743 $3,889,909 $36,753 0.95% $3,949,571 Sewer Capital Reserve $938,306 $520,928 $131,650 $52,895 $70,000 -$61,650 -46.83% $110,000 Vehicle Replacement $266,388 $316,266 $463,000 $215,000 $456,900 -$6,100 -1.32% $262,500 Compensated Absences $155,432 $210,399 $163,710 $165,910 $131,010 -$32,700 -19.97% $92,820 Capital Outlay $54,732 $988 $180,000 $180,000 $600,000 $420,000 233.33% $180,000 Capital Projects $5,466,877 $5,063,946 $5,096,000 $4,639,618 $2,583,000 -$2,513,000 -49.31% $1,250,000 2022A Project Fund $4,054,420 $3,024,558 $332,433 $469,863 - -$332,433 -100.00% - Lease Debt Service Fund $5,839,803 $311,831 $810,875 $810,875 $810,000 -$875 -0.11% $810,000 Total Expenditures $39,830,877 $34,572,221 $32,058,567 $30,670,564 $32,919,407 $860,840 2.69% $26,226,324 Expenditures by Fund
Table of Contents 7.1 All Funds

438 of 791
Expenditures by Expense Type
Historical Expenditures by Expense Type
Transfer Out Salaries Capital Improvement Project
Benefits Contract Services Capital Project
Debt Service Capital Outlay Wastewater Treatment
Other Expense Water Usage Utilities
Payout Repairs and Maintenance Materials and Supplies
Administrative Fee Obligations Depreciation
Economic Development Housing Subsidy Contributions
Conservation Agency Fees GSA Fees
Backflow Landscaping Disclosure Reports
Bond Discount Housing Project
$38M $40M
$35M $32M $33M
$26M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $20M
$40M
$60M
Table of Contents 7.1 All Funds
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 137 439 of 791
FY26 Expenditures by Expense Type
Transfer Out $6,652,494 20.21%
Salaries $5,831,530 17.71%
Capital Project $3,523,000 10.70%
Contract Services $3,407,017 10.35%
Capital Improvement Project $2,533,000 7.69%
Benefits $2,119,510 6.44%
Debt Service $2,094,460 6.36%
Wastewater Treatment $1,866,800 5.67%
Capital Outlay $1,500,108 4.56%
Other Expense $918,574 2.79%
Water Usage $789,100 2.40%
Utilities $660,450 2.01%
Repairs and Maintenance $373,580 1.13%
Payout $262,020 0.80%
Materials and Supplies $117,078 0.36%
Administrative Fee $91,989 0.28%
Obligations $72,573 0.22%
Contributions $31,300 0.10%
Conservation $26,900 0.08%
GSA Fees $15,000 0.05%
Agency Fees $12,700 0.04%
Backflow $12,600 0.04%
Bond Discount $5,124 0.02%
Disclosure Reports $2,500 0.01%
FY27 Expenditures by Expense Type
Salaries $6,030,840 23.00%
Transfer Out $3,525,786 13.44%
Contract Services $3,412,155 13.01%
Benefits $2,232,110 8.51%
Debt Service $2,111,705 8.05%
Wastewater Treatment $1,919,100 7.32%
Capital Project $1,376,760 5.25%
Capital Improvement Project $1,200,000 4.58%
Capital Outlay $1,051,087 4.01%
Water Usage $883,800 3.37%
Other Expense $873,826 3.33%
Utilities $707,740 2.70%
Repairs and Maintenance $303,497 1.16%
Payout $185,634 0.71%
Materials and Supplies $119,935 0.46%
Administrative Fee $110,616 0.42%
Obligations $75,406 0.29%
Contributions $31,000 0.12%
Conservation $27,004 0.10%
GSA Fees $15,000 0.06%
Backflow $13,000 0.05%
Agency Fees $12,700 0.05%
Bond Discount $5,124 0.02%
Disclosure Reports $2,500 0.01%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($ Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Payout $379,039 $364,798 $323,430 $286,530 $262,020 -$61,410 -18.99% $185,634 Materials and Supplies $121,025 $115,423 $110,400 $113,700 $117,078 $6,678 6.05% $119,935 Contract Services $2,565,877 $2,834,006 $3,269,652 $3,599,487 $3,407,017 $137,365 4.20% $3,412,155 Repairs and Maintenance $181,472 $208,082 $330,000 $349,236 $373,580 $43,580 13.21% $303,497 Utilities $469,983 $513,035 $619,140 $616,790 $660,450 $41,310 6.67% $707,740 Other Expense $836,040 $838,366 $790,954 $966,642 $918,574 $127,620 16.13% $873,826 Landscaping $31,575 $13,276 $7,900 $11,900 - -$7,900 -100.00% - Administrative Fee $79,748 $93,743 $99,842 $120,236 $91,989 -$7,853 -7.87% $110,616 Debt Service $1,228,659 $1,452,414 $2,218,986 $2,211,753 $2,094,460 -$124,526 -5.61% $2,111,705 Bond Discount - - $5,124 $5,124 $5,124 - 0.00% $5,124
Agency Fees $11,850 $14,466 $13,600 $13,600 $12,700 -$900 -6.62% $12,700 Disclosure Reports $3,000 $3,000 $2,500 $2,500 $2,500 - 0.00% $2,500 Capital Outlay $1,424,107 $1,343,279 $4,841,298 $3,115,254 $1,500,108 -$3,341,190 -69.01% $1,051,087

32.9M 26.2M
Expenditures by Expense Type
Table of Contents 7.1 All Funds

440 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($ Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Depreciation $114,656 $156,944 - $150,000 - - - -
Transfer Out $14,998,080 $8,574,291 $6,077,633 $5,897,546 $6,652,494 $574,861 9.46% $3,525,786 Contributions $5,235 $5,512 $31,100 $30,945 $31,300 $200 0.64% $31,000 Economic Development $63,475 $132,046 - $290,544 - - - - Water Usage $511,724 $601,704 $645,660 $704,550 $789,100 $143,440 22.22% $883,800 Backflow $8,006 $9,893 $5,000 $12,600 $12,600 $7,600 152.00% $13,000 GSA Fees $12,641 $12,922 $15,000 $15,000 $15,000 - 0.00% $15,000 Wastewater Treatment $1,483,908 $1,531,642 $1,730,400 $1,730,400 $1,866,800 $136,400 7.88% $1,919,100 Conservation $22,079 $16,900 $33,800 $30,322 $26,900 -$6,900 -20.41% $27,004 Obligations $64,405 $67,074 $61,788 $69,796 $72,573 $10,785 17.45% $75,406 Capital Project $3,636,602 $4,166,080 $1,206,000 $1,307,099 $3,523,000 $2,317,000 192.12% $1,376,760 Capital Improvement
Project
$5,262,107 $4,779,690 $2,254,000 $1,823,905 $2,533,000 $279,000 12.38% $1,200,000 Benefits $1,941,635 $2,018,322 $2,193,460 $2,209,280 $2,119,510 -$73,950 -3.37% $2,232,110 Salaries $4,373,949 $4,705,313 $5,171,900 $4,985,825 $5,831,530 $659,630 12.75% $6,030,840 Total Expenditures $39,830,877 $34,572,221 $32,058,567 $30,670,564 $32,919,407 $860,840 2.69% $26,226,324 Table of Contents 7.1 All Funds
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 139 441 of 791
General Fund
The General Fund is the City’s unrestricted source of revenues and expenditures; it is the largest government-type fund with Fiscal Year End reserves estimated at $3.8 million in FY2026 and $4.3 million in FY2027.

The General Fund supports all non-enterprise departments and more than 50% of the City’s total personnel service costs. Elected and appointed officials, Recreation and Facilities, Planning and Community Development, Public Works (except water and sewer), and the Police Department are all dependent on the General Fund for their operations.

General Funds can be used for any municipal purpose, including the general operations of the City, and to fund basic City services such as police, park and street maintenance, and recreational services. Examples of revenue sources for General Funds include:
property taxes, sales taxes, licenses and permits, rents, charges for services, investment earnings, and payments received from other governmental agencies.

This is a major fund for the City as it accounts for more than 10% of the City-Wide Revenues and Expenses during a Fiscal Year.

Summary
Total Revenues for Fiscal Year 2025/26 are budgeted at $11.2M; a 2.0% increase over the Fiscal Year 2024/25 adopted budget. Fiscal Year 2026/27 revenues are budgeted at $11.5M, which is a 2.7% increase over the Fiscal Year 2025/26 budget. These increases are primarily due to moderate growth in tax revenues and other revenues. Comparing the proposed 2025/26 budget to the estimated actual for Fiscal Year 2024/25, the decrease is primarily due to reduced transfers in from other funds.

Total Expenses for Fiscal Year 2025/26 are budgeted at $14.0M, a 0.1% decrease over the Fiscal Year 2024/25 adopted budget. Fiscal Year 2026/27 expenditures are budgeted at $12.1M, which is a 13.7% decrease over the Fiscal Year 2025/26 budget. These decreased costs are primarily due to decreased Transfers Out as Capital Projects are completed during this timescale.

Staffing wage and salary costs continue to increase in line with negotiated Cost of Living Adjustments. Other costs, such as workers' comp insurance, health benefits, pensions and the increase in liability insurance due to large catastrophic claims hitting the global insurance market, offset the overall decreased expenditure totals.

Total Sources and Uses are primarily funding debt payments for the new debt service fund as well as interfund debt service receipts from the enterprise funds.

Transfers In to the General Fund are primarily from the Cops Grant Fund to contribute back to the Police Department-related activities.

Transfers Out primarily fund government capital projects, including streets and parks. The total transfers out for Fiscal Year 2025/26 are budgeted at $3.6M, a 12.9% decrease over the Fiscal Year 2024/25 adopted budget. The total transfers out for Fiscal Year 2026/27 are budgeted at $0.3M, a 90.9% decrease over the Fiscal Year 2025/26 adopted budget. Please refer to the capital improvement section of the budget book for the details on the projects that are planned near you.

Table of Contents 7.2 General Fund

442 of 791
Revenues vs Expenditures Summary
General Fund Comprehensive Fund Summary
Revenue Actual Revenue Budgeted Expenses Actual Expenses Budgeted 2022 2023 2024 2025 2026 2027
0 $5M
$10M
$15M
$20M
Comprehensive Fund Summary
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25
vs. FY
26 (%
Change)
FY 2027
Budgeted
Beginning Fund Balance $8,905,321 $10,166,518 $8,836,177 $8,836,177 $6,636,256 -$2,199,921 -24.90% $3,932,058 Revenues
Interfund Loan Payments - - $155,741 $155,741 $155,742 $1 0.00% $155,742 Taxes $8,669,672 $8,765,315 $8,903,496 $8,756,447 $8,887,030 -$16,466 -0.18% $9,173,681 Licenses, Permits & Franchises $718,840 $771,771 $597,400 $747,755 $782,800 $185,400 31.03% $809,800 Rents $102,863 $136,948 $114,000 $122,000 $128,745 $14,745 12.93% $133,845 Other Agency $151,897 $300,965 $218,870 $241,343 $231,541 $12,671 5.79% $238,864 Other Revenues $2,601,116 $585,374 $448,090 $615,255 $411,080 -$37,010 -8.26% $390,960 Charges for Services $467,322 $431,640 $346,934 $366,139 $365,060 $18,126 5.22% $362,939 Development Fees - - -$2,000 $2,000 - - - -
Debt Service $111,969 $49,392 - $1,500 - - - -
Contributions $22,952 $22,755 $20,000 $28,500 $25,230 $5,230 26.15% $26,880 Transfers In $391,208 $872,303 $202,000 $371,000 $252,905 $50,905 25.20% $259,057 Other Financing Sources $714 $2,131 - - - - - -
Total Revenues $13,238,553 $11,938,593 $11,004,531 $11,407,680 $11,240,133 $235,602 2.14% $11,551,768 Expenditures
Personnel Services $4,817,072 $5,269,056 $5,819,950 $5,662,087 $6,355,450 $535,500 9.20% $6,606,890 Payout $147,303 $114,040 $117,170 $66,600 $100,894 -$16,276 -13.89% $83,890 Debt Service -$50,440 $14,449 $4,630 -$15,370 - -$4,630 -100.00% - Materials and Supplies $101,585 $85,498 $73,416 $79,916 $81,621 $8,205 11.18% $83,272 Contract Services $1,935,563 $2,238,896 $2,506,064 $2,833,959 $2,703,729 $197,665 7.89% $2,693,380 Repairs and Maintenance $113,920 $125,805 $206,200 $229,505 $309,230 $103,030 49.97% $243,207 Utilities $335,068 $362,570 $435,700 $454,890 $487,810 $52,110 11.96% $523,300 Other Expense $426,962 $406,572 $413,600 $433,140 $413,928 $328 0.08% $402,639 Administrative Fee $66,121 $61,119 $78,506 $90,100 $70,533 -$7,973 -10.16% $84,259 Capital Outlay $31,550 $275,967 $225,610 $33,421 - -$225,610 -100.00% - Table of Contents 7.2 General Fund
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 141 443 of 791
Note the above schedule includes all revenues and expenditures. To calculate the Operating Revenues, you must remove the transfers in, Other Financing Sources, Interfund Loan Payments and Debt Service. To calculate the Operating Expenditures you must exclude Transfers Out, Capital Outlay and Debt Service. See conversion schedule below for the total Operating Revenues to Operating Expenditures for the City of Cotati.

Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25
vs. FY
26 (%
Change)
FY 2027
Budgeted
Transfer Out $4,052,652 $4,314,938 $4,101,000 $3,714,053 $3,443,589 -$657,411 -16.03% $1,324,969 Contributions - $25 $25,300 $25,300 $25,500 $200 0.79% $25,000 Total Expenditures $11,977,355 $13,268,936 $14,007,146 $13,607,601 $13,992,284 -$14,862 -0.11% $12,070,805 Total Revenues Less Expenditures $1,261,198 -$1,330,343 -$3,002,615 -$2,199,921 -$2,752,151 $250,464 -8.34% -$519,037 Ending Fund Balance $10,166,519 $8,836,175 $5,833,562 $6,636,256 $3,884,105 -$1,949,457 -33.42% $3,413,021 Table of Contents 7.2 General Fund

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Revenues by Department
FY 2025/26 :
$11,224,828
FY 2026/27 :
$11,531,761
+$220,297 (2.0% vs. prior year)
+$306,933 (+2.7% vs. prior
year)
Historical Revenues by Department
General Government Community Development Recreation
Police Public Works - Streets Public Works - Engineering Code Enforcement City Manager Administrative Services
Public Works - Parks
FY26 Revenues by Department
General Government $10,611,738 94.41%
Community Development $337,400 3.00%
Recreation $137,135 1.22%
Police $75,860 0.67%
Public Works - Streets $44,000 0.39%
Public Works - Engineering $24,000 0.21%
Code Enforcement $10,000 0.09%
FY27 Revenues by Department
General Government $10,915,442 94.49%
Community Development $332,600 2.88%
Recreation $152,387 1.32%
Police $73,339 0.63%
Public Works - Streets $44,000 0.38%
Public Works - Engineering $24,000 0.21%
Code Enforcement $10,000 0.09%
$17M
$13M
$12M $11M $11M $12M
---$$$666,,,444222666 ---$$$111,,,666555000
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$5M
0 $5M
$10M
$15M
$20M

11.2M 11.6M
Table of Contents 7.2 General Fund
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 143 445 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
City Manager $17,385 $2,654 $2,000 $1,125 - -$2,000 -100.00% - Administrative Services $6,495 - - - - - - -
Community Development $345,786 $425,180 $358,874 $405,566 $337,400 -$21,474 -5.98% $332,600 Public Works - Engineering $67,696 $17,795 $34,000 $22,200 $24,000 -$10,000 -29.41% $24,000 Public Works - Streets $95,052 $81,143 $31,500 $51,280 $44,000 $12,500 39.68% $44,000 Public Works - Parks -$1,650 $2,250 $2,300 - - -$2,300 -100.00% - Police $83,356 $72,136 $61,200 $67,338 $75,860 $14,660 23.95% $73,339 Recreation $111,701 $139,605 $104,000 $144,270 $137,135 $33,135 31.86% $152,387 Code Enforcement $13,005 $7,302 $10,000 $40,000 $10,000 - 0.00% $10,000 General Government $12,499,727 $11,190,527 $10,400,657 $10,675,901 $10,611,738 $211,081 2.03% $10,915,442 Total Revenues $13,238,553 $11,938,593 $11,004,531 $11,407,680 $11,240,133 $235,602 2.14% $11,551,768 Revenues by Source
This chart and supporting details include the balance of transfers from other funds in combination with other revenue sources. These funds are usually included after other sources and uses and not relied upon as direct receipts for general funds use and as such are not a part of management's evaluation of operating revenues.

Historical Revenues by Source
Taxes Transfers In Other Revenues
Licenses, Permits & Franchises Charges for Services Other Agency Rents Interfund Loan Payments Debt Service
Contributions Other Financing Sources Development Fees
Revenues by Department
$17M
$13M
$12M $11M $11M $12M
---$$$222,,,000000000
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$5M
0 $5M
$10M
$15M
$20M
Table of Contents 7.2 General Fund

446 of 791
FY26 Revenues by Source
Taxes $8,887,030 79.07%
Licenses, Permits & Franchises $782,800 6.96%
Other Revenues $411,080 3.66%
Charges for Services $365,060 3.25%
Transfers In $252,905 2.25%
Other Agency $231,541 2.06%
Interfund Loan Payments $155,742 1.39%
Rents $128,745 1.15%
Contributions $25,230 0.22%
FY27 Revenues by Source
Taxes $9,173,681 79.41%
Licenses, Permits & Franchises $809,800 7.01%
Other Revenues $390,960 3.38%
Charges for Services $362,939 3.14%
Transfers In $259,057 2.24%
Other Agency $238,864 2.07%
Interfund Loan Payments $155,742 1.35%
Rents $133,845 1.16%
Contributions $26,880 0.23%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs FY
26 ($
Change)
FY 25 vs
FY 26 (%
Change)
FY 2027
Budgeted
Interfund Loan Payments

INTERFUND LOAN PMTS

RECEIVED
- - $155,741 $155,741 $155,742 $1 0.00% $155,742
Total Interfund Loan Payments - - $155,741 $155,741 $155,742 $1 0.00% $155,742 Taxes
PROP. TAX-CURRENT $694,610 $721,676 $756,609 $754,750 $780,550 $23,941 3.16% $806,300 PROP. TAX-CURR YR

SUPPLEMENT
$41,662 $36,933 $15,200 $38,000 $35,000 $19,800 130.26% $35,000 PROP. TAX-UNSECURED $40,904 $51,204 $24,447 $52,500 $35,000 $10,553 43.17% $35,000 PROP. TAX-PY SUPPLEMENTAL -$62 $8 - - - - - -
PROP. TAX-PY SEC/UNSEC $933 $207 - - $200 - - $200
PROP. TAX-HOMEOWNER
EXEMP
$7,724 $7,583 - $7,500 $7,500 - - $7,500
PROP. TAX-INCR RESID $362,982 $398,836 $442,250 $395,000 $364,000 -$78,250 -17.69% $363,000 PROP. TAX-IN-LIEU OF VLF $818,272 $853,979 $885,490 $890,732 $924,000 $38,510 4.35% $960,731 PROP TAX - OTHER $31 $31 - $30 $30 - - -
SALES TAX $2,916,524 $2,814,696 $2,912,000 $2,727,500 $2,803,200 -$108,800 -3.74% $2,888,150 SALES TAX-MEAS. A $6,560 $4,174 - - - - - -
SALES TAX-MEAS. G/S $3,100,971 $3,081,313 $3,115,000 $3,040,000 $3,063,800 -$51,200 -1.64% $3,166,800 TRANSFER TAX $30,956 $30,628 $52,000 $32,000 $30,000 -$22,000 -42.31% $30,000 CANNABIS-BUSINESS TAX $619,670 $758,619 $700,000 $815,000 $812,000 $112,000 16.00% $848,000 CANNABIS-LICENSE FEE $3,050 $300 $500 $500 $500 - 0.00% $500 CANNABIS-APPLICATION FEE $24,886 $5,127 - $2,935 - - - -

CANNABIS-CASH TAX PYMNT
CHRG
- - - - $31,250 - - $32,500
Total Taxes $8,669,672 $8,765,315 $8,903,496 $8,756,447 $8,887,030 -$16,466 -0.18% $9,173,681 Licenses, Permits & Franchises
BUSINESS LICENSE $79,190 $103,868 $100,000 $106,000 $106,500 $6,500 6.50% $108,800 BUSINESS LICENSE LATE CHR $8,244 $8,457 $1,000 $6,720 $6,200 $5,200 520.00% $6,500 FRANCHISE-ELECTRIC $77,731 $82,374 $84,000 $98,145 $89,700 $5,700 6.79% $93,600 FRANCHISE-GAS $29,480 $30,157 $20,000 $26,390 $35,800 $15,800 79.00% $39,100 FRANCHISE-CABLE TV $95,636 $88,306 $99,900 $74,000 $90,600 -$9,300 -9.31% $91,800 FRANCHISE-VIDEO SERVICE $1,290 $252 $5,000 $5,500 $1,000 -$4,000 -80.00% $1,000

11.2M 11.6M
Revenues by Source
Table of Contents 7.2 General Fund
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 145 447 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs FY
26 ($
Change)
FY 25 vs
FY 26 (%
Change)
FY 2027
Budgeted
FRANCHISE-GARBAGE $427,269 $458,357 $287,500 $431,000 $453,000 $165,500 57.57% $469,000 Total Licenses, Permits &
Franchises
$718,840 $771,771 $597,400 $747,755 $782,800 $185,400 31.03% $809,800 Rents
RENTS-FACILITIES / PARKS $49,727 $61,265 $60,000 $60,000 $63,445 $3,445 5.74% $66,225 SPECIAL EVENT FEE $4,015 $5,946 $6,000 $8,000 $7,500 $1,500 25.00% $8,500 RENTS-OTHER $49,121 $63,737 $48,000 $54,000 $55,800 $7,800 16.25% $57,120 RENTS-SMART TRAIN - $6,000 - - $2,000 - - $2,000
Total Rents $102,863 $136,948 $114,000 $122,000 $128,745 $14,745 12.93% $133,845 Other Agency
MOTOR VEHICLE IN-LIEU - $9,363 $6,500 $11,950 $11,600 $5,100 78.46% $11,400 STATE MANDATED COSTS SB90 - $59,733 $5,000 $5,000 $5,000 - 0.00% $5,000 SSU SAFETY CONTRACT SVCS. $151,897 $231,868 $207,370 $224,393 $214,941 $7,571 3.65% $222,464 Total Other Agency $151,897 $300,965 $218,870 $241,343 $231,541 $12,671 5.79% $238,864 Other Revenues
CASH OVER / UNDER $291 $29 - - - - - -
REIMB $87 - - $7,690 - - - -
REIMB-RTRND CHECK FEE - - - $25 - - - -
REIMB-REMIF $46,126 - - $2,700 - - - -
REV. OTHER $183,441 $7,316 - $6,000 - - - -
REV. OTHER-DAMAGE TO CITY
PROP
$20,815 $8,778 - $20,480 - - - -
REV. OTHER-DOC

RETRIEVAL/REPRO
$1,562 $1,095 - - - - - -
REV. OTHER-SALE OF FIXED $2,000,000 $10,001 - - - - - - REV. OTHER-GRATON

MITIGATION
$17,069 $21,257 - $17,720 $18,320 - - $19,000
REV. OTHER -

REBATE/INCENTIVE
$3,096 - - - - - - -
REV. OTHER-EV CHARGING ST $3,835 $8,499 $8,150 $13,500 $12,960 $4,810 59.02% $13,260 INVESTMENT EARNINGS $75,269 $239,473 $200,000 $225,000 $157,000 -$43,000 -21.50% $132,200 REIMB-ADMIN COSTS $17,385 $2,654 $2,000 $400 - -$2,000 -100.00% -

REIMB-MHP RENT

STABILIZATION
- - - $725 - - - -
REIMBURSE ADMIN COSTS $6,495 - - - - - - -
REIMB-ADMIN COSTS $12,627 $101,881 $86,600 $170,000 $100,000 $13,400 15.47% $100,000 PLAN RECOVERY FEE - - $15,740 - - -$15,740 -100.00% -

REIMB-ADMIN COSTS -

ENTITLEMENTS
$64,103 $46,874 $18,300 - - -$18,300 -100.00% -
REIMB-ADMIN COSTS $37,888 $10,212 $20,000 $7,200 $10,000 -$10,000 -50.00% $10,000 VETS PARK LANDSCAPE REIMB -$1,650 $2,250 $2,300 - - -$2,300 -100.00% - REIMB-ADMIN COSTS - - - $45 - - - -
REIMB-ABC GRANT $9,675 $5,647 - - - - - -
REIMB $275 - - - $5,200 - - -
RECREATION - REV. OTHER $136 - - $1,770 - - - -
REIMB-ADMIN COSTS $3,077 - - - - - - -
CONTRACT CLASS REVENUE $86,508 $112,104 $85,000 $102,000 $97,600 $12,600 14.82% $106,500 CODE ENFORCEMENT $13,005 $7,302 $10,000 $40,000 $10,000 - 0.00% $10,000 Total Other Revenues $2,601,116 $585,374 $448,090 $615,255 $411,080 -$37,010 -8.26% $390,960 Charges for Services

BLUEPRINT/MAP

REPRODUCTION
$250 $1,821 $100 $100 $100 - 0.00% $100
BUILDING INSPECTION $191,815 $185,454 $175,000 $175,000 $175,000 - 0.00% $175,000 BUILDING PLAN CHECK $6,796 $21,839 $20,000 $10,000 $12,000 -$8,000 -40.00% $12,000 CBSC BUILDING STDS SB 1473 $46 $40 $200 $100 $150 -$50 -25.00% $150 CITY CNCL APPEAL PROCESS - - - $534 - - - -

CONDITIONAL USE PERMIT
REVIEW
- - -$4,552 $4,552 - - - -
ENERGY/TITLE 24 FEE $2,640 $980 $3,000 $1,000 $1,000 -$2,000 -66.67% $1,000 INCREMENTAL FEE $8,014 $8,098 $6,000 $7,500 $7,000 $1,000 16.67% $5,000 MISCELLANEOUS FEES $50 $312 - $85 $50 - - $50
OUTSIDE PLAN REVIEW $39,305 $38,215 $25,000 $20,000 $25,000 - 0.00% $25,700 PLAN REVISION CHECKING $2,288 $2,674 - $1,525 $2,000 - - $1,500 PRE/FINAL DESIGN REVIEW $7,696 $7,924 $5,000 $6,000 $7,000 $2,000 40.00% $5,000 SIGN PERMIT - $969 $200 $750 $300 $100 50.00% $300
Table of Contents 7.2 General Fund

448 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs FY
26 ($
Change)
FY 25 vs
FY 26 (%
Change)
FY 2027
Budgeted
STRONG MOTION FEE $171 $3 $100 $220 $300 $200 200.00% $300 TECHNOLOGY FEE $7,976 $8,098 $5,000 $6,200 $7,000 $2,000 40.00% $5,000 TEMPORARY USE REVIEW - - - - $500 - - $500
TREE REPLACEMENT FEE $1,642 - $1,000 - - -$1,000 -100.00% $1,000 ZONING RESEARCH LETTER $366 - $200 - - -$200 -100.00% - Concept/Preliminary
Development Review
- - $3,986 - - -$3,986 -100.00% -

ENG PLN CHK-BLDG PERMIT
REV
$28,404 $7,583 $14,000 $15,000 $14,000 - 0.00% $14,000
GRADING PLAN CHECK $1,404 - - - - - - -

MAJOR ENCROACHMENT
PERMIT
$30,269 $9,521 $5,000 - - -$5,000 -100.00% -
MINOR ENCROACH-NON-CONST. $1,315 $2,193 $1,500 $280 - -$1,500 -100.00% - MINR ENCROACH-CONST. $42,646 $35,409 $20,000 $42,000 $35,000 $15,000 75.00% $35,000 REIMB-ADMIN COSTS $20,823 $34,020 $5,000 $9,000 $9,000 $4,000 80.00% $9,000 POST REIMBURSEMENT $8,791 $13,863 $7,000 $8,500 $8,000 $1,000 14.29% $8,224 PERMIT-ALARM $1,920 $1,822 $3,000 $3,000 $3,000 - 0.00% $3,084 PERMIT-OTHER - $4,725 - $1,310 $1,300 - - $1,336
ANIMAL CONTROL $3,355 $735 $5,000 $4,000 $3,960 -$1,040 -20.80% $4,800 IMPOUND/ABATEMENT/RELEASE $8,532 $6,892 $6,000 $14,000 $15,000 $9,000 150.00% $15,420 REPOSSESSION FEE $270 $411 - $200 - - - -
SUBPOENA FEES - $395 - $120 - - - -
POLICECOPIES/REPRO/REPORTS
$2,795 $3,213 $1,500 $2,100 $2,400 $900 60.00% $2,467
FINGERPRINT REQUEST - - $200 - - -$200 -100.00% -
PARKING ENFORCEMENT $16,003 $5,819 $8,500 $10,000 $6,000 -$2,500 -29.41% $6,168 DISTURBANCE-NOISE $100 $200 - - - - - -
TRAFFIC/CRIMINAL CODE FINES $30,233 $27,545 $30,000 $18,000 $30,000 - 0.00% $30,840 FINES & FORFEITURES $207 - - $5,010 - - - -
REV. OTHER $1,199 $869 - $53 - - - -
Total Charges for Services $467,322 $431,640 $346,934 $366,139 $365,060 $18,126 5.22% $362,939 Development Fees
HOUSING LINKAGE FEE - - -$2,000 $2,000 - - - -
Total Development Fees - - -$2,000 $2,000 - - - -
Debt Service
OTHER INTEREST $111,969 $49,392 - $1,500 - - - -
Total Debt Service $111,969 $49,392 - $1,500 - - - -
Contributions
CONTRIBUTIONS $971 $1,500 $1,000 - - -$1,000 -100.00% - CONTRIBUTIONS - - - $1,000 $1,000 - - $1,000
CONTRIBUTIONS $6,759 $6,250 $5,000 $8,750 $7,500 $2,500 50.00% $8,000 SCHOLARSHIP FUNDING $275 $984 $300 $1,050 $500 $200 66.67% $600 SCHOLARSHIP AWARDS -$120 - - - - - - -
SPECIAL EVENTS REVENUE $15,066 $14,022 $13,700 $17,700 $16,230 $2,530 18.47% $17,280 Total Contributions $22,952 $22,755 $20,000 $28,500 $25,230 $5,230 26.15% $26,880 Transfers In
OPER TRANS IN-GENL $391,208 $866,057 $202,000 $358,000 $237,600 $35,600 17.62% $239,050 OPER TRANS IN-REC/VETS BLDG - $6,246 - $13,000 $15,305 - - $20,007 Total Transfers In $391,208 $872,303 $202,000 $371,000 $252,905 $50,905 25.20% $259,057 Other Financing Sources
OTHR FINANCING SRCS-GENL $714 $2,131 - - - - - -
Total Other Financing Sources $714 $2,131 - - - - - -
Total Revenues $13,238,553 $11,938,593 $11,004,531 $11,407,680 $11,240,133 $235,602 2.14% $11,551,768 Table of Contents 7.2 General Fund
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 147 449 of 791
Expenditures by Department
FY 2025/26 :
$13,992,284
FY 2026/27 :
$12,070,805
-$14,862 (-0.1% vs. prior
year)
-$1,921,479 (-13.7% vs. prior
year)
Historical Expenditures by Department
Police General Government Community Development
City Manager Public Works - Parks Public Works - Streets Administrative Services Recreation Public Works - Govt. Buildings City Council Public Works - Engineering Public Works - Storm Water Mgnt.

Code Enforcement Non-Departmental
Recreation Department — Increase in overall expenditure continues to follow historical trends since FY 18/19.

Police Department — Primary increase is due to increased insurance costs.

Public Works Department — Primary increases in budget are due to increased staffing and increased insurance costs.

Community Development Department — Primary decrease is due to completion of the Housing Element and a reduction in contract services, and adjustments for personnel to meet both the code enforcement and building inspection services, which the department supports.

Administrative Services Department — Expenditures have increased compared with the prior year’s budget. The increases are primarily due to additional staffing, insurance and allocated contract services.

City Manager Department — Expenditures have increased compared with the prior year’s budget. The increases are primarily due to additional staffing, insurance and allocated contract services. There are also expenses related to continued Economic Development and Public Information Services Initiatives.

City Council — Expenditures have increased over the two fiscal years, mainly due to increased total healthcare costs for the Council Members.
$17M
$12M
$13M
$14M $14M
$12M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $5M
$10M
$15M
$20M
Table of Contents 7.2 General Fund

450 of 791
FY26 Expenditures by Department
Police $5,381,939 38.46%
General Government $3,443,589 24.61%
City Manager $995,952 7.12%
Community Development $908,243 6.49%
Public Works - Parks $735,667 5.26%
Public Works - Streets $644,664 4.61%
Administrative Services $549,770 3.93%
Recreation $508,729 3.64%
Public Works - Govt. Buildings $288,468 2.06%
City Council $172,515 1.23%
Public Works - Engineering $172,486 1.23%
Public Works - Storm Water Mgnt. $129,263 0.92%
Code Enforcement $61,000 0.44%
FY27 Expenditures by Department
Police $5,595,760 46.36%
General Government $1,324,969 10.98%
City Manager $969,916 8.04%
Community Development $899,308 7.45%
Public Works - Parks $728,443 6.03%
Public Works - Streets $589,982 4.89%
Administrative Services $579,398 4.80%
Recreation $542,943 4.50%
Public Works - Govt. Buildings $285,304 2.36%
City Council $210,991 1.75%
Public Works - Engineering $155,940 1.29%
Public Works - Storm Water Mgnt. $125,311 1.04%
Code Enforcement $62,540 0.52%
Allocated Departmental Expenditures:

Historically, Legal Services and Non-Departmental expenses were reported within separate departments within the general fund.

However, as these services are utilized by all departments, these costs have now been reallocated to all departments using the proportional FTE. As such, there is no budgetary schedule provided herein.

General Government Expenditures represent the General Fund Transfers to Other Governmental Funds:

There are various types of transfers related to other sources and uses of funds. For the budget presented, these transfers are not allocated to a department but rather shown as the general governmental expenditures. See the Capital Improvements section of the budget for further detail on the specific projects proposed within the City General Funds contributions. Most of the funding to be provided for Fiscal Years 2025/26 and 2026/27 is only possible due to Measure S.

Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
City Council $141,150 $135,508 $183,606 $181,112 $172,515 -$11,091 -6.04% $210,991 City Manager $689,672 $711,518 $855,990 $1,017,395 $995,952 $139,962 16.35% $969,916 Administrative Services $421,651 $502,581 $531,160 $549,037 $549,770 $18,610 3.50% $579,398 Non-Departmental - - - - - - - -
Community Development $839,124 $910,831 $901,168 $890,045 $908,243 $7,075 0.79% $899,308 Public Works - Engineering $193,966 $151,077 $150,116 $167,763 $172,486 $22,370 14.90% $155,940 Public Works - Streets $434,101 $450,718 $605,810 $649,958 $644,664 $38,854 6.41% $589,982 Public Works - Storm Water
Mgnt.
$91,820 $103,639 $124,756 $113,066 $129,263 $4,507 3.61% $125,311 Public Works - Govt.

Buildings
$139,845 $194,582 $220,866 $240,000 $288,468 $67,602 30.61% $285,304 14M 12.1M
Expenditures by Department
Table of Contents 7.2 General Fund
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 149 451 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Public Works - Parks $449,317 $525,691 $636,938 $704,449 $735,667 $98,729 15.50% $728,443 Police $4,078,078 $4,676,214 $5,152,304 $4,782,287 $5,381,939 $229,635 4.46% $5,595,760 Recreation $413,784 $465,046 $502,432 $520,236 $508,729 $6,297 1.25% $542,943 Code Enforcement $82,634 $112,144 $41,000 $98,200 $61,000 $20,000 48.78% $62,540 General Government $4,002,213 $4,329,387 $4,101,000 $3,694,053 $3,443,589 -$657,411 -16.03% $1,324,969 Total Expenditures $11,977,355 $13,268,936 $14,007,146 $13,607,601 $13,992,284 -$14,862 -0.11% $12,070,805 Expenditures by Expense Type
This chart and supporting detail include the balance of transfers out from the general fund as an expenditure. These funds are usually included after other sources and uses and not included within operating expenditures. Please see capital projects detail for more information on the use of these funds.

Historical Expenditures by Expense Type
Salaries Transfer Out Benefits
Contract Services Utilities Other Expense
Repairs and Maintenance Payout Capital Outlay
Materials and Supplies Administrative Fee Contributions Debt Service
$17M
$12M
$13M $14M $14M
$12M
---$$$555000,,,444444000
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$5M
0 $5M
$10M
$15M
$20M
Table of Contents 7.2 General Fund

452 of 791
FY26 Expenditures by Expense Type
Salaries $4,687,390 33.50%
Transfer Out $3,443,589 24.61%
Contract Services $2,703,729 19.32%
Benefits $1,668,060 11.92%
Utilities $487,810 3.49%
Other Expense $413,928 2.96%
Repairs and Maintenance $309,230 2.21%
Payout $100,894 0.72%
Materials and Supplies $81,621 0.58%
Administrative Fee $70,533 0.50%
Contributions $25,500 0.18%
FY27 Expenditures by Expense Type
Salaries $4,851,170 40.19%
Contract Services $2,693,380 22.31%
Benefits $1,755,720 14.55%
Transfer Out $1,324,969 10.98%
Utilities $523,300 4.34%
Other Expense $402,639 3.34%
Repairs and Maintenance $243,207 2.01%
Administrative Fee $84,259 0.70%
Payout $83,890 0.69%
Materials and Supplies $83,272 0.69%
Contributions $25,000 0.21%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs FY
26 ($
Change)
FY 25 vs
FY 26 (%
Change)
FY 2027
Budgeted
Payout $147,303 $114,040 $117,170 $66,600 $100,894 -$16,276 -13.89% $83,890 Materials and Supplies $101,585 $85,498 $73,416 $79,916 $81,621 $8,205 11.18% $83,272 Contract Services $1,935,563 $2,238,896 $2,506,064 $2,833,959 $2,703,729 $197,665 7.89% $2,693,380 Repairs and Maintenance $113,920 $125,805 $206,200 $229,505 $309,230 $103,030 49.97% $243,207 Utilities $335,068 $362,570 $435,700 $454,890 $487,810 $52,110 11.96% $523,300 Other Expense $426,962 $406,572 $413,600 $433,140 $413,928 $328 0.08% $402,639 Administrative Fee $66,121 $61,119 $78,506 $90,100 $70,533 -$7,973 -10.16% $84,259 Debt Service -$50,440 $14,449 $4,630 -$15,370 - -$4,630 -100.00% - Capital Outlay $31,550 $275,967 $225,610 $33,421 - -$225,610 -100.00% - Transfer Out $4,052,652 $4,314,938 $4,101,000 $3,714,053 $3,443,589 -$657,411 -16.03% $1,324,969 Contributions - $25 $25,300 $25,300 $25,500 $200 0.79% $25,000 Benefits $1,335,710 $1,574,639 $1,735,490 $1,758,587 $1,668,060 -$67,430 -3.89% $1,755,720 Salaries $3,481,362 $3,694,417 $4,084,460 $3,903,500 $4,687,390 $602,930 14.76% $4,851,170 Total Expenditures $11,977,355 $13,268,936 $14,007,146 $13,607,601 $13,992,284 -$14,862 -0.11% $12,070,805 14M 12.1M
Expenditures by Expense Type
Table of Contents 7.2 General Fund
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 151 453 of 791
Fund Balance
The fund balance for Fiscal Years 2025/26 and 2026/27 is projected to decrease due to use of funds to stimulate significant capital projects during the year with over $4.1M in transfers out for said projects. The City will continue to maintain the required reserve of 25% of operating expenses.

Fund Balance Projections
Unassigned Assigned
Fund Balance FY 2023 FY 2024 FY 2025 FY 2026
FY 25 vs. FY
26 ($ Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Unassigned $8,185,342 $6,597,678 $4,162,869 $1,294,884 -$2,867,985 -68.89% $711,257 Assigned $1,981,176 $2,238,499 $2,473,387 $2,637,174 $163,787 6.62% $2,686,459 Total Fund
Balance
$10,166,518 $8,836,177 $6,636,256 $3,932,058 -$2,704,198 -40.75% $3,397,716 $9M
$10M
$9M
$7M
$4M $3M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $5M
$10M
$15M
Financial Summary
Table of Contents 7.2 General Fund

454 of 791
Enterprise Funds (Water/Sewer)
This page is provided as a summary of the enterprise funds for the City, which includes both the Operating and Capital Funds for both Water and Sewer Services provided to the Community. This is for presentational purposes only and the funds are strictly segregated within the financial system.

Summary
The City of Cotati is projecting $7.47M of revenue in FY2026, which represents a 26.1% increase over the prior year, and $7.69M of revenue in FY2027, a 2.9% increase over FY2026. Budgeted expenditures are projected to increase by 10.6% to $8.13M in FY2026, and then decrease by 5.1% to $7.71M in FY2027.

Revenues vs Expenditures Summary
Revenue Actual Revenue Budgeted Expenses Actual Expenses Budgeted 2022 2023 2024 2025 2026 2027
0 $2M
$4M
$6M
$8M
$10M
Table of Contents 7.3 Enterprise Fund (Water/Sewer)
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 153 455 of 791
Revenues by Fund
FY 2025/26 :
$7,473,727
FY 2026/27 :
$7,687,167
+$1,547,727 (+26.1% vs. prior
year)
+$213,440 (+2.9% vs. prior
year)
Revenues are primarily derived from fees for services. These fees are subject to independent evaluations with Rate Studies. The City was engaged in a new rate study during Fiscal Year 2024/25 to evaluate the appropriate rates to be applied for services. The rates will be in effect for the subsequent 5 years.

Historical Revenues by Fund
Sewer Operating Fund Water Operating Water Capital Fund Sewer Capital Reserve
FY26 Revenues by Fund
Sewer Operating Fund $3,753,900 50.23%
Water Operating $2,654,560 35.52%
Water Capital Fund $1,022,400 13.68%
Sewer Capital Reserve $42,867 0.57%
FY27 Revenues by Fund
Sewer Operating Fund $4,113,300 53.51%
Water Operating $2,903,100 37.77%
Water Capital Fund $618,900 8.05%
Sewer Capital Reserve $51,867 0.67%
$5M $5M
$6M $6M
$7M $8M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M
$10M

7.47M 7.69M
Table of Contents 7.3 Enterprise Fund (Water/Sewer)

456 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($
Change)
FY 25 vs. FY
26 (%
Change)
FY 2027
Budgeted
Water Operating $2,106,828 $2,350,599 $2,370,900 $2,535,030 $2,654,560 $283,660 11.96% $2,903,100 Water Capital Fund $42,216 $63,432 $6,700 $47,880 $1,022,400 $1,015,700 15,159.70% $618,900 Sewer Operating Fund $2,938,131 $3,399,148 $3,445,300 $3,468,420 $3,753,900 $308,600 8.96% $4,113,300 Sewer Capital Reserve $48,733 $362,820 $103,100 $175,307 $42,867 -$60,233 -58.42% $51,867 Total Revenues $5,135,907 $6,176,000 $5,926,000 $6,226,637 $7,473,727 $1,547,727 26.12% $7,687,167 Revenues by Source
Historical Revenues by Source
Charges for Services Transfers In Other Revenues
Impact Fees Customer Fees Debt Service
Contributions
FY26 Revenues by Source
Charges for Services $6,281,627 84.05%
Transfers In $1,000,000 13.38%
Other Revenues $141,100 1.89%
Customer Fees $51,000 0.68%
FY27 Revenues by Source
Charges for Services $6,906,167 89.84%
Transfers In $610,000 7.94%
Other Revenues $118,900 1.55%
Customer Fees $52,100 0.68%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Other Revenues $155,105 $323,875 $134,700 $277,800 $141,100 $6,400 4.75% $118,900 Revenues by Fund
-$42 ---$$$111777,,,777222888
$5M $5M
$6M $6M
$7M $8M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$3M
0 $3M
$5M
$8M
$10M

7.47M 7.69M
Revenues by Source
Table of Contents 7.3 Enterprise Fund (Water/Sewer)
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 155 457 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Charges for Services $4,936,446 $5,505,668 $5,669,800 $5,769,867 $6,281,627 $611,827 10.79% $6,906,167 Impact Fees - $11,046 - $50,740 - - - -
Debt Service $3,252 $967 - - - - - -
Contributions -$17,728 - - - - - - -
Transfers In - $280,000 $80,000 $80,000 $1,000,000 $920,000 1,150.00% $610,000 Customer Fees $58,831 $54,444 $41,500 $48,230 $51,000 $9,500 22.89% $52,100 Total Revenues $5,135,907 $6,176,000 $5,926,000 $6,226,637 $7,473,727 $1,547,727 26.12% $7,687,167 Table of Contents 7.3 Enterprise Fund (Water/Sewer)

458 of 791
Expenditures by Fund
FY 2025/26 :
$8,125,333
FY 2026/27 :
$7,710,565
+$781,642 (+10.6% vs. prior
year)
-$414,768 (-5.1% vs. prior year)
Expenditures within the operating funds include all the cost to provide services to the utility users including personnel, insurance, cost of water/wastewater treatment, equipment, technological systems, bank fees, etc. Capital Funds are used to support infrastructure improvements and maintenance. See the detail under the expenditure by expense type below.

Historical Expenditures by Fund
Sewer Operating Fund Water Operating Water Capital Fund Sewer Capital Reserve
FY26 Expenditures by Fund
Sewer Operating Fund $3,889,909 47.87%
Water Operating $3,465,424 42.65%
Water Capital Fund $700,000 8.62%
Sewer Capital Reserve $70,000 0.86%
FY27 Expenditures by Fund
Sewer Operating Fund $3,949,571 51.22%
Water Operating $3,119,694 40.46%
Water Capital Fund $531,300 6.89%
Sewer Capital Reserve $110,000 1.43%
$5M
$6M $6M
$7M
$8M $8M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M
$10M

8.13M 7.71M
Table of Contents 7.3 Enterprise Fund (Water/Sewer)
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 157 459 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Water Operating $1,990,770 $2,052,501 $2,371,042 $2,264,541 $3,465,424 $1,094,382 46.16% $3,119,694 Water Capital Fund $82,213 $107,883 $987,843 $144,543 $700,000 -$287,843 -29.14% $531,300 Sewer Operating Fund $3,448,666 $3,717,998 $3,853,156 $3,924,743 $3,889,909 $36,753 0.95% $3,949,571 Sewer Capital Reserve $938,306 $520,928 $131,650 $52,895 $70,000 -$61,650 -46.83% $110,000 Total Expenditures $6,459,955 $6,399,311 $7,343,691 $6,386,722 $8,125,333 $781,642 10.64% $7,710,565 Expenditures by Expense Type
Historical Expenditures by Expense Type
Wastewater Treatment Salaries Debt Service
Capital Outlay Water Usage Contract Services
Benefits Transfer Out Other Expense
Utilities Repairs and Maintenance Payout
Conservation Materials and Supplies GSA Fees
Backflow Administrative Fee
Expenditures by Fund
$5M
$6M $6M
$7M
$8M $8M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M
$10M
Table of Contents 7.3 Enterprise Fund (Water/Sewer)

460 of 791
FY26 Expenditures by Expense Type
Wastewater Treatment $1,866,800 22.98%
Salaries $1,017,780 12.53%
Transfer Out $1,000,000 12.31%
Capital Outlay $993,208 12.22%
Debt Service $836,427 10.29%
Water Usage $789,100 9.71%
Contract Services $591,381 7.28%
Benefits $412,080 5.07%
Other Expense $302,303 3.72%
Utilities $144,050 1.77%
Repairs and Maintenance $62,450 0.77%
Materials and Supplies $27,848 0.34%
Payout $27,806 0.34%
Conservation $26,500 0.33%
GSA Fees $15,000 0.18%
Backflow $12,600 0.16%
FY27 Expenditures by Expense Type
Wastewater Treatment $1,919,100 24.89%
Salaries $1,049,560 13.61%
Water Usage $883,800 11.46%
Debt Service $854,372 11.08%
Capital Outlay $738,587 9.58%
Transfer Out $610,000 7.91%
Contract Services $607,081 7.87%
Benefits $435,030 5.64%
Other Expense $311,104 4.03%
Utilities $153,090 1.99%
Repairs and Maintenance $58,790 0.76%
Materials and Supplies $28,493 0.37%
Conservation $27,004 0.35%
GSA Fees $15,000 0.19%
Backflow $13,000 0.17%
Payout $6,554 0.09%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Payout $70,610 $41,107 $40,410 $49,230 $27,806 -$12,604 -31.19% $6,554 Materials and Supplies $18,629 $22,019 $29,633 $26,633 $27,848 -$1,785 -6.02% $28,493 Contract Services $526,809 $502,196 $625,140 $586,200 $591,381 -$33,759 -5.40% $607,081 Repairs and Maintenance $58,395 $82,277 $123,800 $106,531 $62,450 -$61,350 -49.56% $58,790 Utilities $116,701 $129,480 $158,490 $135,770 $144,050 -$14,440 -9.11% $153,090 Other Expense $207,048 $291,075 $216,333 $359,554 $302,303 $85,970 39.74% $311,104 Administrative Fee - $31 $30 $30 - -$30 -100.00% -
Debt Service $926,387 $908,143 $948,467 $978,702 $836,427 -$112,040 -11.81% $854,372 Capital Outlay $1,034,338 $624,042 $1,310,688 $202,538 $993,208 -$317,480 -24.22% $738,587 Transfer Out - $280,000 $80,000 $80,000 $1,000,000 $920,000 1,150.00% $610,000 Water Usage $511,724 $601,704 $645,660 $704,550 $789,100 $143,440 22.22% $883,800 Backflow $8,006 $9,893 $5,000 $12,600 $12,600 $7,600 152.00% $13,000 GSA Fees $12,641 $12,922 $15,000 $15,000 $15,000 - 0.00% $15,000 Wastewater Treatment $1,483,908 $1,531,642 $1,730,400 $1,730,400 $1,866,800 $136,400 7.88% $1,919,100 Conservation $22,079 $16,610 $28,800 $28,800 $26,500 -$2,300 -7.99% $27,004 Benefits $597,696 $415,913 $417,440 $406,604 $412,080 -$5,360 -1.28% $435,030 Salaries $864,986 $930,258 $968,400 $963,580 $1,017,780 $49,380 5.10% $1,049,560 Total Expenditures $6,459,955 $6,399,311 $7,343,691 $6,386,722 $8,125,333 $781,642 10.64% $7,710,565

8.13M 7.71M
Expenditures by Expense Type
Table of Contents 7.3 Enterprise Fund (Water/Sewer)
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 159 461 of 791
Water Operating
Fund 401
The goal of the Water Division is to continuously provide an adequate supply of water that is safe and healthy for customers. Assure fair collection of water revenue by maintaining all City water meters within tolerances established by the American Water Works Association, and by maintaining all consumer meters in proper operating condition.

This is a major fund for the City as it accounts for more that 10% of City-wide Revenues and Expenses during a fiscal year.

Summary
The City of Cotati is projecting $2.65M of revenue in FY2026, which represents a 12.0% increase over the prior year. Budgeted revenue for FY2027 is projected to be $2.9M, a 9.4% increase over the prior fiscal year. Budgeted expenditures are projected to increase by 46.2% or $1.1M to $3.47M in FY2026 and decrease by 10.0% to $3.12M in FY2027.

Revenues vs Expenditures Summary
Water Operating Comprehensive Summary
Revenue Actual Revenue Budgeted Expenses Actual Expenses Budgeted 2022 2023 2024 2025 2026 2027
0 $1M
$2M
$3M
$4M
Comprehensive Fund Summary
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Beginning Fund Balance $1,675,307 $1,791,365 $2,089,463 $2,089,463 $2,359,952 $270,489 12.95% $1,549,088 Revenues
Other Revenues $39,791 $111,650 $60,000 $109,500 $50,100 -$9,900 -16.50% $42,200 Charges for Services $2,025,933 $2,184,506 $2,269,400 $2,377,300 $2,553,460 $284,060 12.52% $2,808,800 Table of Contents 7.3.1 Water Operating

462 of 791
Note the above schedule includes all revenues and expenditures. To calculate the Operating Revenues you must remove the Other Revenues and Contributions. To calculate the Operating Expenditures you must exclude Transfers Out, Capital Outlay and Debt Service.

See conversion schedule below for the total Operating Revenues to Operating Expenditures for the Water Operating Fund.

Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Contributions -$17,728 - - - - - - -
Customer Fees $58,831 $54,444 $41,500 $48,230 $51,000 $9,500 22.89% $52,100 Total Revenues $2,106,828 $2,350,599 $2,370,900 $2,535,030 $2,654,560 $283,660 11.96% $2,903,100 Expenditures
Personnel Services $731,400 $672,645 $704,370 $683,672 $716,590 $12,220 1.73% $743,960 Payout $35,339 $20,553 $20,590 $24,615 $13,903 -$6,687 -32.48% $3,277 Debt Service $19,524 $30,955 $104,469 $116,065 $79,545 -$24,924 -23.86% $79,546 Materials and Supplies $13,390 $18,874 $22,318 $19,318 $20,177 -$2,141 -9.59% $20,789 Contract Services $374,425 $329,691 $399,427 $323,506 $353,387 -$46,040 -11.53% $343,440 Repairs and Maintenance $37,668 $65,994 $78,500 $41,791 $31,000 -$47,500 -60.51% $32,000 Utilities $95,853 $107,106 $133,640 $105,880 $112,590 -$21,050 -15.75% $119,750 Other Expense $128,722 $165,524 $140,738 $188,714 $183,928 $43,190 30.69% $189,909 Administrative Fee - $31 $30 $30 - -$30 -100.00% -
Capital Outlay - - $72,500 - $111,604 $39,104 53.94% $48,719 Transfer Out - - - - $1,000,000 - - $600,000
Water Usage $511,724 $601,704 $645,660 $704,550 $789,100 $143,440 22.22% $883,800 Backflow $8,006 $9,893 $5,000 $12,600 $12,600 $7,600 152.00% $13,000 GSA Fees $12,641 $12,922 $15,000 $15,000 $15,000 - 0.00% $15,000 Conservation $22,079 $16,610 $28,800 $28,800 $26,000 -$2,800 -9.72% $26,504 Total Expenditures $1,990,770 $2,052,501 $2,371,042 $2,264,541 $3,465,424 $1,094,382 46.16% $3,119,694 Total Revenues Less Expenditures $116,058 $298,099 -$142 $270,489 -$810,864 -$810,722 570,930.99% -$216,594 Ending Fund Balance $1,791,365 $2,089,464 $2,089,321 $2,359,952 $1,549,088 -$540,233 -25.86% $1,332,494 Table of Contents 7.3.1 Water Operating
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 161 463 of 791
Revenues by Source
FY 2025/26 :
$2,654,560
FY 2026/27 :
$2,903,100
+$283,660 (+12.0% vs. prior
year)
+$248,540 (+9.4% vs. prior
year)
Revenues are generated based on the water usage, as multiplied by the water usage rate as well as the base service charges.

Projections for revenues are based on known rate increases as well as historical trends for usage. Due to the ongoing drought environment, these revenues may fluctuate due to changes in usage as conservation efforts are initiated across the community.

Historical Revenues by Source
Charges for Services Customer Fees Other Revenues
Contributions
FY26 Revenues by Source
Charges for Services $2,553,460 96.19%
Customer Fees $51,000 1.92%
Other Revenues $50,100 1.89%
FY27 Revenues by Source
Charges for Services $2,808,800 96.75%
Customer Fees $52,100 1.79%
Other Revenues $42,200 1.45%
-$42 ---$$$111777,,,777222888
$2M $2M
$2M $2M
$3M
$3M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$1M
0 $1M
$2M
$3M
$4M

2.65M 2.9M
Table of Contents 7.3.1 Water Operating

464 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Other Revenues $39,791 $111,650 $60,000 $109,500 $50,100 -$9,900 -16.50% $42,200 Charges for Services $2,025,933 $2,184,506 $2,269,400 $2,377,300 $2,553,460 $284,060 12.52% $2,808,800 Contributions -$17,728 - - - - - - -
Customer Fees $58,831 $54,444 $41,500 $48,230 $51,000 $9,500 22.89% $52,100 Total Revenues $2,106,828 $2,350,599 $2,370,900 $2,535,030 $2,654,560 $283,660 11.96% $2,903,100 Revenues by Source
Table of Contents 7.3.1 Water Operating
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 163 465 of 791
Expenditures by Expense Type
FY 2025/26 :
$3,465,424
FY 2026/27 :
$3,119,694
+$1,094,382 (+46.2% vs. prior
year)
-$345,730 (-10.0% vs. prior
year)
Operating expenses are primarily driven by personnel costs as well as direct charges for water purchases from the Sonoma County Water Agency. Both of these expenses are expected to increase due to negotiated MOU increases for staff plus pension obligation costs, and increasing costs from the Water Agency.

Historical Expenditures by Expense Type
Water Usage Salaries Contract Services
Transfer Out Benefits Other Expense
Utilities Debt Service Repairs and Maintenance
Capital Outlay Conservation Payout
Materials and Supplies GSA Fees Backflow
Administrative Fee
$2M
$2M $2M
$2M
$3M
$3M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M
$4M
Table of Contents 7.3.1 Water Operating

466 of 791
FY26 Expenditures by Expense Type
Transfer Out $1,000,000 28.86%
Water Usage $789,100 22.77%
Salaries $510,470 14.73%
Contract Services $353,387 10.20%
Benefits $206,120 5.95%
Other Expense $183,928 5.31%
Utilities $112,590 3.25%
Capital Outlay $111,604 3.22%
Debt Service $79,545 2.30%
Repairs and Maintenance $31,000 0.89%
Conservation $26,000 0.75%
Materials and Supplies $20,177 0.58%
GSA Fees $15,000 0.43%
Payout $13,903 0.40%
Backflow $12,600 0.36%
FY27 Expenditures by Expense Type
Water Usage $883,800 28.33%
Transfer Out $600,000 19.23%
Salaries $526,360 16.87%
Contract Services $343,440 11.01%
Benefits $217,600 6.98%
Other Expense $189,909 6.09%
Utilities $119,750 3.84%
Debt Service $79,546 2.55%
Capital Outlay $48,719 1.56%
Repairs and Maintenance $32,000 1.03%
Conservation $26,504 0.85%
Materials and Supplies $20,789 0.67%
GSA Fees $15,000 0.48%
Backflow $13,000 0.42%
Payout $3,277 0.11%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Payout $35,339 $20,553 $20,590 $24,615 $13,903 -$6,687 -32.48% $3,277 Materials and Supplies $13,390 $18,874 $22,318 $19,318 $20,177 -$2,141 -9.59% $20,789 Contract Services $374,425 $329,691 $399,427 $323,506 $353,387 -$46,040 -11.53% $343,440 Repairs and Maintenance $37,668 $65,994 $78,500 $41,791 $31,000 -$47,500 -60.51% $32,000 Utilities $95,853 $107,106 $133,640 $105,880 $112,590 -$21,050 -15.75% $119,750 Other Expense $128,722 $165,524 $140,738 $188,714 $183,928 $43,190 30.69% $189,909 Administrative Fee - $31 $30 $30 - -$30 -100.00% -
Debt Service $19,524 $30,955 $104,469 $116,065 $79,545 -$24,924 -23.86% $79,546 Capital Outlay - - $72,500 - $111,604 $39,104 53.94% $48,719 Transfer Out - - - - $1,000,000 - - $600,000
Water Usage $511,724 $601,704 $645,660 $704,550 $789,100 $143,440 22.22% $883,800 Backflow $8,006 $9,893 $5,000 $12,600 $12,600 $7,600 152.00% $13,000 GSA Fees $12,641 $12,922 $15,000 $15,000 $15,000 - 0.00% $15,000 Conservation $22,079 $16,610 $28,800 $28,800 $26,000 -$2,800 -9.72% $26,504 Benefits $298,876 $207,514 $218,670 $201,962 $206,120 -$12,550 -5.74% $217,600 Salaries $432,523 $465,130 $485,700 $481,710 $510,470 $24,770 5.10% $526,360 Total Expenditures $1,990,770 $2,052,501 $2,371,042 $2,264,541 $3,465,424 $1,094,382 46.16% $3,119,694

3.47M 3.12M
Expenditures by Expense Type
Table of Contents 7.3.1 Water Operating
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 165 467 of 791
Fund Balance
The fund balance continues to exceed the required 33% reserve requirement as set out by Council resolution. With the adopted rate increases in effect, we anticipate future fund balances to continue to increase in line with the rate study. We will continue to monitor the reserves to ensure the stability of this fund for our community into the future.

Fund Balance Projections
Unassigned Assigned
Fund Balance FY 2023 FY 2024 FY 2025 FY 2026
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Unassigned $1,140,854 $1,422,353 $1,650,955 $761,748 -$889,207 -53.86% $527,245 Assigned $650,511 $667,110 $708,997 $787,340 $78,343 11.05% $805,249 Total Fund
Balance
$1,791,365 $2,089,463 $2,359,952 $1,549,088 -$810,864 -34.36% $1,332,494 $2M
$2M
$2M
$2M
$2M
$1M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M
Financial Summary
Table of Contents 7.3.1 Water Operating

468 of 791
Water Capital
Fund 402
This fund is used to account for capital projects and infrastructure needs to support the ongoing operations of our water customers.

Summary
The City of Cotati is projecting $1.02M of revenue in FY2026, which represents a 15,159.7% increase over the prior year. Revenues in FY2027 are anticipated to fall by 39.5% to $619K when compared to the prior fiscal year. Budgeted expenditures are projected to decrease by 29.1% to $700K in FY2026, and decrease by a further 24.1% to $531K in FY2027.

Revenues vs Expenditures Summary
Comprehensive Fund Summary
Revenue Actual Revenue Budgeted Expenses Actual Expenses Budgeted 2022 2023 2024 2025 2026 2027
0 $250K
$500K
$750K
$1,000K
$1,250K
Comprehensive Fund Summary
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 2027
Budgeted
Beginning Fund Balance $1,139,059 $1,099,062 $1,062,056 $1,062,056 $665,393 $987,793 Revenues
Other Revenues $42,216 $54,137 $6,700 $47,880 $22,400 $18,900 Impact Fees - $9,296 - - - -
Transfers In - - - - $1,000,000 $600,000
Total Revenues $42,216 $63,432 $6,700 $47,880 $1,022,400 $618,900 Expenditures
Table of Contents 7.3.2 Water Capital
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 167 469 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 2027
Budgeted
Debt Service -$8,168 $4,223 - -$5,100 - -
Capital Outlay $90,382 $103,661 $987,843 $149,643 $700,000 $531,300 Total Expenditures $82,213 $107,883 $987,843 $144,543 $700,000 $531,300 Total Revenues Less Expenditures -$39,998 -$44,451 -$981,143 -$96,663 $322,400 $87,600 Ending Fund Balance $1,099,061 $1,054,611 $80,913 $965,393 $987,793 $1,075,393 Table of Contents 7.3.2 Water Capital

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Revenues by Source
FY 2025/26 :
$1,022,400
FY 2026/27 :
$618,900
+$1,015,700 (+15,159.7%
vs. prior year)
-$403,500 (-39.5% vs. prior
year)
Historical Revenues by Source
Transfers In Impact Fees Other Revenues
FY26 Revenues by Source
Transfers In $1,000,000 97.81%
Other Revenues $22,400 2.19%
FY27 Revenues by Source
Transfers In $600,000 96.95%
Other Revenues $18,900 3.05%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs FY
26 ($
Change)
FY 25 vs FY
26 (%
Change)
FY 2027
Budgeted
Other Revenues
INVESTMENT EARNINGS $22,202 $53,200 $5,000 $46,180 $22,400 $17,400 348.00% $18,900 WTR CPTL-REV.OTHRMETER
$20,014 $937 $1,700 $1,700 - -$1,700 -100.00% -
Total Other Revenues $42,216 $54,137 $6,700 $47,880 $22,400 $15,700 234.33% $18,900 Impact Fees
$335K
$42K $63K $7K
$1M
$619K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K

1.02M 619K
Revenues by Source
Table of Contents 7.3.2 Water Capital
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 169 471 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs FY
26 ($
Change)
FY 25 vs FY
26 (%
Change)
FY 2027
Budgeted

WTR-CONNECTION
FEES
- $9,296 - - - - - -
Total Impact Fees - $9,296 - - - - - -
Transfers In

OPER TRANS IN-WTR
CAP
- - - - $1,000,000 - - $600,000
Total Transfers In - - - - $1,000,000 - - $600,000
Total Revenues $42,216 $63,432 $6,700 $47,880 $1,022,400 $1,015,700 15,159.70% $618,900 Table of Contents 7.3.2 Water Capital

472 of 791
Expenditures by Expense Type
FY 2025/26 :
$700,000
FY 2026/27 :
$531,300
+$287,843 (-29.1% vs. prior
year)
-$168,700 (-24.1% vs. prior
year)
The Water Fund has implemented strategic capital projects over the last five years, focusing on system repairs and maintenance, including related technology integration. With the adopted five-year capital plan, reserves from the water fund are currently being maintained to support the future major project of the Cypress Water Tank replacement. Additional expenditures are anticipated to continue relating to the risk mitigation around PG&E public safety power shutoffs, which have required rentals of generators to support the wells.

Strategic projects anticipated for FY2025 include the SCADA System Server Upgrade and Relocation, as well as the West Sierra Tank Recoating, and continued Well 1-A Improvements.

Note that depreciation expense is a non-budgeted item, as it is non-cash and represents the usage of assets currently in service.

Historical Expenditures by Expense Type
Capital Outlay Debt Service
FY26 Expenditures by Expense Type
Capital Outlay $700,000 100.00%
FY27 Expenditures by Expense Type
Capital Outlay $531,300 100.00%
$12K
$90K $108K
$988K
$700K
$531K
---$$$888,,,111666888
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$500K
0 $500K
$1,000K
$1,500K
700K 531K
Table of Contents 7.3.2 Water Capital
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 171 473 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Debt Service

INVESTMENT EXPENSE -
FMV
-$8,168 $4,223 - -$5,100 - - - -
Total Debt Service -$8,168 $4,223 - -$5,100 - - - -
Capital Outlay
CIP-SCADA SYSTEM - $62,968 $81,643 $81,643 - -$81,643 -100.00% - WTR-CIP-WELL 1A

IMPRVMNTS
- - $68,000 $68,000 - -$68,000 -100.00% -
Hydrant Water ATM - $40,693 - - - - - -
Portal, Mercantile &
Aaron Main
Replacement
$90,382 - - - - - - -
West Sierra Tank
Recoating
- - $838,200 - - -$838,200 -100.00% -
Cypress Water Tank - - - - $80,000 - - $531,300
Distribution System
Monitoring
- - - - $130,000 - - -
Water Renewal and
Replacement Master
Plan
- - - - $150,000 - - -
Well 2
Renewal/Remediation
- - - - $215,000 - - -
Well 1A/Well 3 Treatment
Renewal and
Replacement
- - - - $125,000 - - -
Total Capital Outlay $90,382 $103,661 $987,843 $149,643 $700,000 -$287,843 -29.14% $531,300 Total Expenditures $82,213 $107,883 $987,843 $144,543 $700,000 -$287,843 -29.14% $531,300 Expenditures by Expense Type
Table of Contents 7.3.2 Water Capital

474 of 791
Fund Balance
The Water Fund has implemented strategic capital projects over the last three years, focusing on system repairs and maintenance, including related technology integration. With the multi-year capital plan, reserves from the Water Fund are currently being maintained to support the future major project of the Cypress Water Tank Replacement, as this is a significant project that will further assist in risk mitigation of possible fire dangers.

Fund Balance Projections
Unassigned
Fund Balance FY 2023 FY 2024 FY 2025 FY 2026
FY 25 vs. FY
26 ($
Change)
FY 25 vs. FY
26 (%
Change)
FY 2027
Unassigned $1,099,062 $1,062,056 $665,393 $987,793 $322,400 48.45% $1,075,393 Total Fund
Balance
$1,099,062 $1,062,056 $665,393 $987,793 $322,400 48.45% $1,075,393 $1M $1M $1M
$665K
$988K
$1M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
Financial Summary
Table of Contents 7.3.2 Water Capital
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 173 475 of 791
Sewer Operating
Fund 404
The goal of the Sewer Division is to: Protect the health and welfare of the community by insuring the continuous, uninterrupted operation of the wastewater collection and transmission system. Provide appropriate maintenance and repair of wastewater collection and transmission systems and appurtenances.

This is a major fund for the City, as it accounts for more than 10% of the City-wide Revenues and Expenses during a fiscal year.

Summary
The City of Cotati is projecting $3.75M of revenue in FY2026, which represents a 9.0% increase over the prior year. Budgeted revenue for FY2027 is projected to be $4.11M, a 9.6% increase over the prior fiscal year. Budgeted expenditures are projected to increase by 1.0% to $3.89M in FY2026 and increase by 1.5% to $3.95M in FY2027.

Revenues vs Expenditures Summary
Comprehensive Fund Summary
Revenue Actual Revenue Budgeted Expenses Actual Expenses Budgeted 2022 2023 2024 2025 2026 2027
0 $1M
$2M
$3M
$4M
$5M
Comprehensive Fund Summary
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25
vs. FY
26 (%
Change)
FY 2027
Budgeted
Beginning Fund Balance $2,280,306 $1,769,771 $1,450,921 $1,450,921 $994,598 -$456,323 -31.45% $858,589 Revenues
Other Revenues $63,093 $148,403 $60,000 $112,420 $62,300 $2,300 3.83% $52,500 Table of Contents 7.3.3 Sewer Operating

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Note the above schedule includes all revenues and expenditures. To calculate the Operating Revenues you must remove the Other Revenues and Contributions. To calculate the Operating Expenditures you must exclude Transfers Out, Capital Outlay and Debt Service.

See conversion schedule below for the total Operating Revenues to Operating Expenditures for the Sewer Operating Fund.

Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25
vs. FY
26 (%
Change)
FY 2027
Budgeted
Charges for Services $2,873,946 $3,248,029 $3,385,300 $3,356,000 $3,691,600 $306,300 9.05% $4,060,800 Impact Fees - $1,750 - - - - - -
Debt Service $1,092 $967 - - - - - -
Total Revenues $2,938,131 $3,399,148 $3,445,300 $3,468,420 $3,753,900 $308,600 8.96% $4,113,300 Expenditures
Personnel Services $731,281 $673,527 $681,470 $686,512 $713,270 $31,800 4.67% $740,630 Payout $35,270 $20,553 $19,820 $24,615 $13,903 -$5,917 -29.85% $3,277 Debt Service $920,684 $872,418 $843,998 $867,737 $756,882 -$87,116 -10.32% $774,826 Materials and Supplies $5,238 $3,145 $7,315 $7,315 $7,671 $356 4.87% $7,704 Contract Services $152,384 $172,505 $225,713 $262,694 $237,994 $12,281 5.44% $263,641 Repairs and Maintenance $20,727 $16,283 $45,300 $64,740 $31,450 -$13,850 -30.57% $26,790 Utilities $20,848 $22,375 $24,850 $29,890 $31,460 $6,610 26.60% $33,340 Other Expense $78,326 $125,551 $75,595 $170,840 $118,375 $42,780 56.59% $121,195 Capital Outlay - - $118,695 - $111,604 -$7,091 -5.97% $48,568 Transfer Out - $280,000 $80,000 $80,000 - -$80,000 -100.00% $10,000 Wastewater Treatment $1,483,908 $1,531,642 $1,730,400 $1,730,400 $1,866,800 $136,400 7.88% $1,919,100 Conservation - - - - $500 - - $500
Total Expenditures $3,448,666 $3,717,998 $3,853,156 $3,924,743 $3,889,909 $36,753 0.95% $3,949,571 Total Revenues Less Expenditures -$510,535 -$318,850 -$407,856 -$456,323 -$136,009 $271,847 -66.65% $163,729 Ending Fund Balance $1,769,771 $1,450,921 $1,043,065 $994,598 $858,589 -$184,476 -17.69% $1,022,318 Table of Contents 7.3.3 Sewer Operating
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 175 477 of 791
Revenues by Source
FY 2025/26 :
$3,753,900
FY 2026/27 :
$4,113,300
+$308,600 (+9.0% vs. prior
year)
+$359,400 (+9.6% vs. prior
year)
Revenues are generated based on the sewer usage as multiplied by the sewer usage rate as well as the base service charges.

Projections for revenues are based on known rate increases as well as historical trends for usage.

The City's multi-year rate study was adopted and put into place during FY2025. For more information please see our City website here.

Historical Revenues by Source
Charges for Services Other Revenues Impact Fees
Debt Service
FY26 Revenues by Source
Charges for Services $3,691,600 98.34%
Other Revenues $62,300 1.66%
FY27 Revenues by Source
Charges for Services $4,060,800 98.72%
Other Revenues $52,500 1.28%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs
FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Other Revenues $63,093 $148,403 $60,000 $112,420 $62,300 $2,300 3.83% $52,500 $3M $3M
$3M $3M
$4M
$4M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $2M
$4M
$6M

3.75M 4.11M
Revenues by Source
Table of Contents 7.3.3 Sewer Operating

478 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs
FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Charges for Services $2,873,946 $3,248,029 $3,385,300 $3,356,000 $3,691,600 $306,300 9.05% $4,060,800 Impact Fees - $1,750 - - - - - -
Debt Service $1,092 $967 - - - - - -
Total Revenues $2,938,131 $3,399,148 $3,445,300 $3,468,420 $3,753,900 $308,600 8.96% $4,113,300 Table of Contents 7.3.3 Sewer Operating
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 177 479 of 791
Expenditures by Expense Type
FY 2025/26 :
$3,889,909
FY 2026/27 :
$3,949,571
+$36,753 (+1.0% vs. prior
year)
+$59,662 (+1.5% vs. prior
year)
Increases in Operating Expenses are primarily due to the increasing cost of treatment charges.

Historical Expenditures by Expense Type
Wastewater Treatment Debt Service Salaries
Benefits Contract Services Other Expense
Transfer Out Capital Outlay Repairs and Maintenance
Utilities Payout Materials and Supplies
Conservation Administrative Fee
$3M $3M
$4M $4M $4M $4M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $2M
$4M
$6M
Table of Contents 7.3.3 Sewer Operating

480 of 791
FY26 Expenditures by Expense Type
Wastewater Treatment $1,866,800 47.99%
Debt Service $756,882 19.46%
Salaries $507,310 13.04%
Contract Services $237,994 6.12%
Benefits $205,960 5.29%
Other Expense $118,375 3.04%
Capital Outlay $111,604 2.87%
Utilities $31,460 0.81%
Repairs and Maintenance $31,450 0.81%
Payout $13,903 0.36%
Materials and Supplies $7,671 0.20%
Conservation $500 0.01%
FY27 Expenditures by Expense Type
Wastewater Treatment $1,919,100 48.59%
Debt Service $774,826 19.62%
Salaries $523,200 13.25%
Contract Services $263,641 6.68%
Benefits $217,430 5.51%
Other Expense $121,195 3.07%
Capital Outlay $48,568 1.23%
Utilities $33,340 0.84%
Repairs and Maintenance $26,790 0.68%
Transfer Out $10,000 0.25%
Materials and Supplies $7,704 0.20%
Payout $3,277 0.08%
Conservation $500 0.01%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Payout

PAYOUT-COMP TIME

ACCRUED
$13 $58 - - - - - -
PAYOUT-VAC/LEAVE $35,257 $20,220 $19,820 $24,560 $13,903 -$5,917 -29.85% $3,277 PAYOUT-BONUS - $275 - $55 - - - -
Total Payout $35,270 $20,553 $19,820 $24,615 $13,903 -$5,917 -29.85% $3,277 Materials and Supplies
MATERIALS & SUPPLIES $4,940 $2,685 $7,000 $7,000 $7,000 - 0.00% $7,000 MATERIALS & SUPPLIES $298 $460 $315 $315 $671 $356 113.02% $704 Total Materials and
Supplies
$5,238 $3,145 $7,315 $7,315 $7,671 $356 4.87% $7,704
Contract Services
CNTRCT SVCSPROFESSIONAL SVCS
$4,847 - $2,000 $2,000 $10,000 $8,000 400.00% $10,000
ALLOCATEDPROFESSIONAL SVCS
$9,193 $12,878 $12,804 $12,804 $12,772 -$32 -0.25% $16,330

CNTRCT SVCS-TECH &

DATA MGMT
$19,353 $23,131 $19,387 $19,387 $18,625 -$762 -3.93% $19,100

ALLOCATED-TECH &

DATA MGMT
$35,278 $31,873 $42,944 $42,944 $44,686 $1,742 4.06% $45,055

CNTRCT SVCS-SPECIAL

PROJECT
- - $7,500 $15,300 - -$7,500 -100.00% -

ALLOCATED-SPECIAL

PROJECT
- - - $250 - - - -
CNTRCT SVCS-GENERAL $1,759 $4,058 $10,000 $10,600 $15,620 $5,620 56.20% $15,640

3.89M 3.95M
Expenditures by Expense Type
Table of Contents 7.3.3 Sewer Operating
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 179 481 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
SEWER 2017 RATE
STUDY
- - - $14,375 - - - $12,500
ALLOCATED-GENERAL $10,638 $9,304 $18,330 $19,736 $15,454 -$2,876 -15.69% $14,829 SVCS-LEGAL $303 $181 - - - - - -

ALLOCATED-LEGAL

RETAINER
$9,071 $10,190 $9,690 $9,690 $10,920 $1,230 12.69% $11,256

ALLOCATED-LEGAL

NON-RETAINER
- $854 $1,020 $6,890 $6,090 $5,070 497.06% $6,279
SVCS-LEGAL-SPCLALLOCATED
$2,367 $3,396 $3,150 $3,150 $3,150 - 0.00% $3,245
INSURANCE-OTHER $17 $386 - $6,680 - - - -

ALLOCATED-OTHER

INSURANCE
$59,558 $76,252 $98,888 $98,888 $100,677 $1,789 1.81% $109,407 Total Contract Services $152,384 $172,505 $225,713 $262,694 $237,994 $12,281 5.44% $263,641 Repairs and Maintenance
R&M-GENERAL $15,504 $3,608 $10,000 $48,650 $26,000 $16,000 160.00% $21,200 R&M-VEHICLE $5,223 $12,674 $5,300 $5,300 $5,450 $150 2.83% $5,590 ALLOCATED - R&MVEHICLE
- - $30,000 $10,790 - -$30,000 -100.00% -
Total Repairs and
Maintenance
$20,727 $16,283 $45,300 $64,740 $31,450 -$13,850 -30.57% $26,790 Utilities
UTILITIES - COMCAST $1,357 $1,912 $1,420 $4,240 $4,270 $2,850 200.70% $4,510 UTILITIES - PG&E $12,720 $14,539 $17,240 $19,060 $20,400 $3,160 18.33% $21,830

UTILITIES - SONOMA

EVERGREEN
$726 $790 $820 $950 $980 $160 19.51% $1,010
UTILITIES-PHONE $6,044 $5,134 $5,370 $5,640 $5,810 $440 8.19% $5,990 Total Utilities $20,848 $22,375 $24,850 $29,890 $31,460 $6,610 26.60% $33,340 Other Expense
ADS.& PUBS $256 - $400 $400 $250 -$150 -37.50% $250
BAD DEBT WRITE OFF - $7,324 - - - - - -

BANK & MERCHANT
FEES
$34,212 $63,589 $18,500 $110,000 $70,000 $51,500 278.38% $71,960

BANK & MERCHANT
FEES
$854 $933 $1,160 $2,430 $3,500 $2,340 201.72% $3,598
DUES & SUBSCRIPTIONS $10,921 $13,724 $12,913 $12,913 $7,000 -$5,913 -45.79% $7,000

ALLOCATED-DUES &

SUBSCRIPTIONS
$869 $1,039 $2,469 $2,469 $2,679 $210 8.51% $2,742
EQUIPMENT RENTAL $11,731 $13,105 $10,600 $13,500 $8,000 -$2,600 -24.53% $8,000 EQUIPMENT RENTAL $502 $695 $1,253 $1,253 $1,356 $103 8.22% $1,355 LICENSING-SOFTWARE - - $5,600 - - -$5,600 -100.00% -
MEETING & TRAINING $252 $1,488 $2,000 - $1,500 -$500 -25.00% $1,500 RECRUITING $16 $342 $200 $200 - -$200 -100.00% -
POSTAGE $1,210 $435 $500 $520 $740 $240 48.00% $770

PRNTG-PSTG-UTILITY

BILLING
$2,057 $317 $8,400 $8,400 $8,500 $100 1.19% $9,000
PRINTING/COPIES $148 $8,308 $50 $1,500 $50 - 0.00% $50
PRINTING / COPIES $2,748 $2,325 $3,150 $2,710 $1,500 -$1,650 -52.38% $1,500 REGULATORY FEES - $3,746 - $3,945 $4,000 - - $4,000
SMALL TOOLS & EQUIP. $2,308 $125 $3,500 $3,500 $2,000 -$1,500 -42.86% $2,000

TRAVEL, MEALS,

LODGING
$551 $894 $500 $500 $500 - 0.00% $500
VEHICLE FUEL EXPENSE $9,691 $7,162 $4,400 $6,600 $6,800 $2,400 54.55% $6,970 Total Other Expense $78,326 $125,551 $75,595 $170,840 $118,375 $42,780 56.59% $121,195 Debt Service
INTEREST EXPENSE $23,377 $22,049 - $21,658 $19,361 - - $18,830

INVESTMENT EXPENSE -
FMV
-$15,418 $9,991 - -$13,000 - - - -
Table of Contents 7.3.3 Sewer Operating

482 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted

INTEREST - INTERFUND
LOAN
$24,316 $23,069 $27,069 $27,069 $19,290 -$7,779 -28.74% $17,858

WASTE TREATMENT

AGENCY -DEBT SERVICE
$888,408 $817,309 $776,500 $776,500 $661,325 -$115,175 -14.83% $679,800

PRINCIPAL - INTERFUND
LOAN
- - $40,429 $55,510 $56,906 $16,477 40.76% $58,338
Total Debt Service $920,684 $872,418 $843,998 $867,737 $756,882 -$87,116 -10.32% $774,826 Capital Outlay

ALLOCATED-FIXED

ASSET-VEHICLE
- - $118,695 - $111,604 -$7,091 -5.97% $48,568
Total Capital Outlay - - $118,695 - $111,604 -$7,091 -5.97% $48,568 Transfer Out
OPER TRANS OUT-SWR - $280,000 $80,000 $80,000 - -$80,000 -100.00% $10,000 Total Transfer Out - $280,000 $80,000 $80,000 - -$80,000 -100.00% $10,000 Wastewater Treatment

WASTEWATER

TREATMENT
$1,483,908 $1,531,642 $1,730,400 $1,730,400 $1,866,800 $136,400 7.88% $1,919,100 Total Wastewater
Treatment
$1,483,908 $1,531,642 $1,730,400 $1,730,400 $1,866,800 $136,400 7.88% $1,919,100 Conservation
CNSRVTN-TOILET RETRO - - - - $500 - - $500
Total Conservation - - - - $500 - - $500
Benefits
HEALTH IN-LIEU $451 $453 $450 $445 $450 - 0.00% $450

UNIFORM SAFETY
SHOES
$391 $140 $510 $575 $510 - 0.00% $510

WORKERS COMP-LIGHT
DUTY
- - $1,060 $1,060 $20 -$1,040 -98.11% $20

WORKERS COMP-OFF
DUTY
- $144 - - - - - -

LEAVE-SHORT TERM

DISABILITY
- $321 - - - - - -
DEFERRED COMP $6,629 $6,918 $8,510 $8,360 $10,520 $2,010 23.62% $10,940 PERS RETIREMENT $167,686 $27,168 $44,510 $42,655 $44,000 -$510 -1.15% $45,490

PERS UNFUNDED

LIABILITY
$34,173 $50,005 $53,740 $60,952 $39,220 -$14,520 -27.02% $41,840 PERS SURVIVOR BNFTS $118 $256 $260 $260 $300 $40 15.38% $300 INS-LIFE & DISB $2,827 $3,325 $1,520 $3,070 $1,520 - 0.00% $1,520 INS-HEALTH $92,940 $97,639 $100,760 $104,420 $100,090 -$670 -0.66% $106,750 TAX-MEDICARE $6,801 $7,072 $7,270 $7,460 $9,330 $2,060 28.34% $9,610

CONTRA-COMP

ABSENCES
-$13,198 $14,957 -$19,820 -$24,615 - $19,820 -100.00% - Total Benefits $298,819 $208,398 $198,770 $204,642 $205,960 $7,190 3.62% $217,430 Salaries
EARNING-SALARIES $345,112 $382,115 $398,960 $370,560 $419,420 $20,460 5.13% $430,185 JURY DUTY - $1,106 - - - - - -
EARNING-STANDBY PAY $5,285 $5,080 $4,560 $4,960 $4,570 $10 0.22% $4,570 OVERTIME $908 $743 $560 $1,930 $1,430 $870 155.36% $1,460 LONGEVITY $16,674 $17,145 $17,730 $20,155 $17,630 -$100 -0.56% $21,130 AUTO ALLOWANCE $2,046 $2,051 $2,040 $2,040 $2,040 - 0.00% $2,040 UNIFORM ALLOWANCE $50 $253 - $320 - - - -

UNIFORM

MAINTENANCE
$174 $173 $170 $150 $170 - 0.00% $170
LEAVE-HOLIDAY/FLOAT $25,465 $25,427 $26,920 $33,065 $28,445 $1,525 5.66% $29,175 LEAVE-SICK PAY $12,453 $9,750 $10,405 $13,545 $10,980 $575 5.53% $11,265 LEAVE-COVID19

MANDATED PAY
$2,642 - - - - - - -

LEAVE-VACATION/LEAVE
PAY
$14,093 $15,186 $16,000 $27,235 $16,925 $925 5.78% $17,360 Table of Contents 7.3.3 Sewer Operating
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 181 483 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted

LEAVE-COMP TIME
TAKEN
$801 $509 - $1,135 - - - -
LEAVE-BEREAVEMENT $744 $323 - $60 - - - -
LEAVE-ADMINISTRATIVE $6,017 $5,266 $5,355 $6,715 $5,700 $345 6.44% $5,845 Total Salaries $432,462 $465,128 $482,700 $481,870 $507,310 $24,610 5.10% $523,200 Total Expenditures $3,448,666 $3,717,998 $3,853,156 $3,924,743 $3,889,909 $36,753 0.95% $3,949,571 Table of Contents 7.3.3 Sewer Operating

484 of 791
Fund Balance
The fund balance is expected to dip below the required 33% reserve requirement as set out by council resolution in fiscal year 2025/26.

Then in subsequent year 2026/27 the fund balance should increase back to the required 33%. This continued decrease is inline with the rate study performed in 2022 and again in 2025. We will continue to monitor the reserves to ensure the stability of this fund for our community into the future.

Fund Balance Projections
Assigned Unassigned
Fund Balance FY 2023 FY 2024 FY 2025 FY 2026
FY 25 vs. FY
26 ($
Change)
FY 25 vs. FY
26 (%
Change)
FY 2027
Unassigned $935,537 $604,280 $12,186 - -$12,186 -100.00% - Assigned $834,234 $846,641 $982,412 $858,589 -$123,823 -12.60% $1,022,318 Total Fund
Balance
$1,769,771 $1,450,921 $994,598 $858,589 -$136,009 -13.67% $1,022,318 $2M
$2M
$1M
$995K
$859K
$1M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M
Financial Summary
Table of Contents 7.3.3 Sewer Operating
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 183 485 of 791
Sewer Capital
Fund 405
This fund is used to account for capital projects and infrastructure needs to support the ongoing operations for our sewer customers.

Summary
The City of Cotati is projecting $42.9K of revenue in FY2026, which represents a 58.4% decrease over the prior year. Revenues in FY2027 are anticipated to grow by 21.0% to $51.9K when compared to the prior fiscal year. Budgeted expenditures are projected to decrease by 46.8% to $70K in FY2026, and then increase by 57.1% to $110K in FY2027.

Revenues vs Expenditures Summary
Revenue Actual Revenue Budgeted Expenses Actual Expenses Budgeted 2022 2023 2024 2025 2026 2027
0 $250K
$500K
$750K
$1,000K
Table of Contents 7.3.4 Sewer Capital

486 of 791
Comprehensive Fund Summary
Comprehensive Fund Summary
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25
vs. FY
26 ($
Change)
FY 25
vs. FY
26 (%
Change)
FY 2027
Budgeted
Beginning Fund Balance $876,771 $325,950 $32,610 $32,610 $4,060 -$28,550 -87.55% -$23,073 Revenues
Other Revenues $10,005 $9,686 $8,000 $8,000 $6,300 -$1,700 -21.25% $5,300 Charges for Services $36,567 $73,134 $15,100 $36,567 $36,567 $21,467 142.17% $36,567 Impact Fees - - - $50,740 - - - -
Debt Service $2,161 - - - - - - -
Transfers In - $280,000 $80,000 $80,000 - -$80,000 -100.00% $10,000 Total Revenues $48,733 $362,820 $103,100 $175,307 $42,867 -$60,233 -58.42% $51,867 Expenditures
Debt Service -$5,651 $547 - - - - - -
Capital Outlay $943,957 $520,381 $131,650 $52,895 $70,000 -$61,650 -46.83% $110,000 Total Expenditures $938,306 $520,928 $131,650 $52,895 $70,000 -$61,650 -46.83% $110,000 Total Revenues Less Expenditures -$889,573 -$158,108 -$28,550 $122,412 -$27,133 $1,417 -4.96% -$58,133 Ending Fund Balance -$12,802 $167,842 $4,060 $155,022 -$23,073 -$27,133 -668.30% -$81,206 Table of Contents 7.3.4 Sewer Capital
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 185 487 of 791
Revenues by Source
FY 2025/26 :
$42,867
FY 2026/27 :
$51,867
-$60,233 (-58.4% vs. prior
year)
+$9,000 (+21.0% vs. prior
year)
Revenues for FY2026 were retained as conservative, assuming (1) Flat growth with reduced consumption, (2) No new significant connection fees since completion of Kessing Ranch Developments and (3) A significant reduction in transfers.

Historical Revenues by Source
Transfers In Impact Fees Charges for Services
Other Revenues Debt Service
FY26 Revenues by Source
Charges for Services $36,567 85.30%
Other Revenues $6,300 14.70%
FY27 Revenues by Source
Charges for Services $36,567 70.50%
Transfers In $10,000 19.28%
Other Revenues $5,300 10.22%
$299K
$49K
$363K
$103K
$43K $52K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $100K
$200K
$300K
$400K

42.9K 51.9K
Table of Contents 7.3.4 Sewer Capital

488 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Other Revenues
INVESTMENT EARNINGS $10,005 $9,686 $8,000 $8,000 $6,300 -$1,700 -21.25% $5,300 Total Other Revenues $10,005 $9,686 $8,000 $8,000 $6,300 -$1,700 -21.25% $5,300 Charges for Services
SWR-COLL. SYSTM
CHRGS
$36,567 $73,134 $15,100 $36,567 $36,567 $21,467 142.17% $36,567 Total Charges for Services $36,567 $73,134 $15,100 $36,567 $36,567 $21,467 142.17% $36,567 Impact Fees

SWR-CONNECTION
FEES
- - - $50,740 - - - -
Total Impact Fees - - - $50,740 - - - -
Debt Service
INT. REV-INTRFND LOAN $2,161 - - - - - - -
Total Debt Service $2,161 - - - - - - -
Transfers In

OPER TRANS IN-SWR
CAP
- $280,000 $80,000 $80,000 - -$80,000 -100.00% $10,000
Total Transfers In - $280,000 $80,000 $80,000 - -$80,000 -100.00% $10,000 Total Revenues $48,733 $362,820 $103,100 $175,307 $42,867 -$60,233 -58.42% $51,867 Revenues by Source
Table of Contents 7.3.4 Sewer Capital
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 187 489 of 791
Expenditures by Expense Type
FY 2025/26 :
$70,000
FY 2026/27 :
$110,000
-$61,650 (-46.8% vs. prior
year)
+$40,000 (+57.1% vs. prior
year)
The Sewer Fund continues strategic capital projects after the major investment in the Laguna Bypass Sewer Replacement Project in FY2019, the Cypress Avenue Sewer Replacement in FY2024, and system repairs and maintenance, including Manhole Lateral repairs and improvements.

Historical Expenditures by Expense Type
Capital Outlay Debt Service
FY26 Expenditures by Expense Type
Capital Outlay $70,000 100.00%
FY27 Expenditures by Expense Type
Capital Outlay $110,000 100.00%
$116K
$944K
$521K
$132K
$70K
$110K
---$$$555,,,666555111
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$500K
0 $500K
$1,000K
70K 110K
Table of Contents 7.3.4 Sewer Capital

490 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Debt Service

INVESTMENT EXPENSE -
FMV
-$5,651 $547 - - - - - -
Total Debt Service -$5,651 $547 - - - - - -
Capital Outlay
FIXED ASSET-EQUIP. - - $50,000 - - -$50,000 -100.00% -
SWR-SCADA PHASE 2 - $62,968 $81,650 $50,395 - -$81,650 -100.00% -

SWR-CYPRESS LINE

REPLACEMENT
- $457,414 - - - - - -

MANHOLE LATERAL
REPAIR
$46,075 - - $2,500 - - - -
Sewer Renewal and
Replacement Master
Plan
- - - - $70,000 - - $110,000
SWR-W. Sierra Ave Sewer
Replacement
$897,882 - - - - - - -
Total Capital Outlay $943,957 $520,381 $131,650 $52,895 $70,000 -$61,650 -46.83% $110,000 Total Expenditures $938,306 $520,928 $131,650 $52,895 $70,000 -$61,650 -46.83% $110,000 Expenditures by Expense Type
Table of Contents 7.3.4 Sewer Capital
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 189 491 of 791
Fund Balance
This fund balance will fluctuate based on the usage of funds for strategic capital projects. We will continue to evaluate and maintain the fund to meet future needs.

Fund Balance Projections
Unassigned
Fund Balance FY 2023 FY 2024
FY
2025
FY 2026
FY 25 vs. FY 26 ($
Change)
FY 25 vs. FY 26 (%
Change)
FY 2027
Unassigned $325,950 - - -$23,073 -$23,073 - -$81,206
Total Fund
Balance
$325,950 $32,610 $4,060 -$23,073 -$27,133 -668.30% -$81,206 0 $326K
0 0
---$$$222333,,,000777333
---$$$888111,,,222000666
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$200K
0 $200K
$400K
Financial Summary
Table of Contents 7.3.4 Sewer Capital

492 of 791
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.

Departmental Oversight of Special Revenue Funds
Each special revenue fund is managed by departments within the City. Below is the summary of the special revenue funds by their managing department.

Table of Contents 7.4 Special Revenue Funds
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 191 493 of 791
Summary
The City of Cotati is projecting just over $1.18M of revenue in FY2026, which represents a 11.8% increase over the prior year. Budgeted revenue for FY2027 is projected to be almost $1.18M, a 0.3% decrease over the prior fiscal year. Budgeted expenditures are projected to increase by 16.0% to $1.69M in FY2026 and then decrease by 11.6% to $1.49M in FY2027.

Revenues vs Expenditures Summary
Revenue Actual Revenue Budgeted Expenses Actual Expenses Budgeted 2022 2023 2024 2025 2026 2027
0 $1M
$2M
$3M
$4M
Table of Contents 7.4 Special Revenue Funds

494 of 791
Revenues by Fund
FY 2025/26 :
$1,183,301
FY 2026/27 :
$1,179,280
+$125,248 (+11.8% vs. prior
year)
-$4,021 (-0.3% vs. prior year)
Historical Revenues by Fund
ARPA 2021 Gas Tax Public Safety
RMRA Traffic Mitigation Parks Measure M
MTC Street In-Lieu-Inclusionary Hsng Linkage - Affordable Hsng Community Facilities Dist Veterans Building Management PEG K-9 Program Park In Lieu Disability Access And Education Revolving Fund In-Lieu Tree Fund Bed Tax CDBG
$3M
$1M $1M $1M $1M $1M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M
$4M
Table of Contents 7.4 Special Revenue Funds
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 193 495 of 791
FY26 Revenues by Fund
Gas Tax $229,790 19.42%
RMRA $200,600 16.95%
Public Safety $197,800 16.72%
MTC Street $143,530 12.13%
Parks Measure M $113,500 9.59%
In-Lieu-Inclusionary Hsng $96,591 8.16%
Traffic Mitigation $64,300 5.43%
Veterans Building Management $41,250 3.49%
Community Facilities Dist $40,200 3.40%
PEG $17,700 1.50%
K-9 Program $15,540 1.31%
Park In Lieu $11,500 0.97%
Linkage - Affordable Hsng $6,000 0.51%
Disability Access And Education
Revolving Fund
$3,500 0.30%
In-Lieu Tree Fund $800 0.07%
Bed Tax $700 0.06%
FY27 Revenues by Fund
Gas Tax $224,560 19.05%
RMRA $200,200 16.98%
Public Safety $197,400 16.74%
MTC Street $143,030 12.13%
Parks Measure M $112,900 9.58%
In-Lieu-Inclusionary Hsng $89,695 7.61%
Traffic Mitigation $62,000 5.26%
Veterans Building Management $48,604 4.12%
Community Facilities Dist $41,650 3.53%
K-9 Program $20,790 1.76%
PEG $17,300 1.47%
Park In Lieu $11,300 0.96%
Linkage - Affordable Hsng $5,000 0.42%
Disability Access And Education
Revolving Fund
$3,400 0.29%
In-Lieu Tree Fund $650 0.06%
Bed Tax $600 0.05%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Bed Tax $871 $1,844 $4,500 $3,070 $700 -$3,800 -84.44% $600 Parks Measure M $117,821 $112,641 $100,000 $115,520 $113,500 $13,500 13.50% $112,900 In-Lieu Tree Fund - $14,707 $500 $7,550 $800 $300 60.00% $650 Veterans Building
Management
- $24,872 $22,250 $35,200 $41,250 $19,000 85.39% $48,604 Gas Tax $199,286 $222,021 $212,235 $239,118 $229,790 $17,555 8.27% $224,560 MTC Street $83,350 $86,499 $82,000 $85,660 $143,530 $61,530 75.04% $143,030 Traffic Mitigation $163,550 $40,772 $64,000 $63,500 $64,300 $300 0.47% $62,000 Park In Lieu $1,760 $4,472 $10,000 $12,390 $11,500 $1,500 15.00% $11,300 PEG $20,177 $23,274 $20,000 $18,600 $17,700 -$2,300 -11.50% $17,300 Public Safety $190,050 $205,284 $164,000 $208,900 $197,800 $33,800 20.61% $197,400 K-9 Program $20,940 $18,520 $12,500 $6,355 $15,540 $3,040 24.32% $20,790 In-Lieu-Inclusionary Hsng $68,540 $93,661 $120,568 $140,477 $96,591 -$23,977 -19.89% $89,695 Community Facilities Dist $36,141 $40,970 $39,000 $38,000 $40,200 $1,200 3.08% $41,650 RMRA $170,412 $196,339 $193,000 $203,995 $200,600 $7,600 3.94% $200,200 Linkage - Affordable Hsng $92,953 $15,172 $11,000 $14,450 $6,000 -$5,000 -45.45% $5,000 Disability Access And
Education Revolving Fund
$3,000 $4,283 $2,500 $4,070 $3,500 $1,000 40.00% $3,400 Total Revenues $1,168,852 $1,105,330 $1,058,053 $1,196,855 $1,183,301 $125,248 11.84% $1,179,079

1.18M 1.18M
Revenues by Fund
Table of Contents 7.4 Special Revenue Funds

496 of 791
Revenues by Source
Historical Revenues by Source
Taxes Other Revenues Grants
COPS GRANT-SLESA PSAF PROP 172 Development Fees
Interfund Loan Payments Debt Service Rents
Franchise Fees Transfers In Charges for Services
Contributions
FY26 Revenues by Source
Taxes $514,620 43.49%
Other Revenues $330,300 27.91%
COPS GRANT-SLESA $124,000 10.48%
PSAF PROP 172 $72,000 6.08%
Interfund Loan Payments $47,230 3.99%
Rents $40,250 3.40%
Debt Service $19,361 1.64%
Franchise Fees $16,500 1.39%
Transfers In $15,540 1.31%
Charges for Services $3,500 0.30%
FY27 Revenues by Source
Taxes $511,740 43.40%
Other Revenues $316,549 26.85%
COPS GRANT-SLESA $123,900 10.51%
PSAF PROP 172 $72,000 6.11%
Interfund Loan Payments $48,665 4.13%
Rents $46,805 3.97%
Transfers In $20,790 1.76%
Debt Service $18,830 1.60%
Franchise Fees $16,300 1.38%
Charges for Services $3,500 0.30%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Interfund Loan Payments - - $67,499 $45,839 $47,230 -$20,269 -30.03% $48,665 Taxes $427,078 $444,303 $436,535 $451,018 $514,620 $78,085 17.89% $511,740 Franchise Fees $19,439 $19,023 $20,000 $17,000 $16,500 -$3,500 -17.50% $16,300 $3M
$1M $1M $1M $1M $1M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M
$4M

1.18M 1.18M
Revenues by Source
Table of Contents 7.4 Special Revenue Funds
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 195 497 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Rents - $24,655 $21,000 $35,115 $40,250 $19,250 91.67% $46,805 PSAF PROP 172 $69,323 $77,748 $64,000 $86,000 $72,000 $8,000 12.50% $72,000 Other Revenues $400,518 $359,499 $310,450 $402,035 $330,300 $19,850 6.39% $316,549 Charges for Services $2,615 $17,365 $3,000 $9,900 $3,500 $500 16.67% $3,500 COPS GRANT-SLESA $116,929 $121,085 $100,000 $122,000 $124,000 $24,000 24.00% $123,900 Development Fees $87,695 - - - - - - -
Debt Service $24,316 $23,069 $23,069 $21,658 $19,361 -$3,708 -16.07% $18,830 Contributions $546 $1,293 - $500 - - - -
Transfers In $20,394 $17,289 $12,500 $5,790 $15,540 $3,040 24.32% $20,790 Total Revenues $1,168,852 $1,105,330 $1,058,053 $1,196,855 $1,183,301 $125,248 11.84% $1,179,079 Table of Contents 7.4 Special Revenue Funds

498 of 791
Expenditures by Expense Type
FY 2025/26 :
$1,687,390
FY 2026/27 :
$1,492,204
+$233,290 (+16.0% vs. prior
year)
-$195,186 (-11.6% vs. prior
year)
Historical Expenditures by Expense Type
Transfer Out Contract Services Housing Subsidy
Other Expense Administrative Fee Contributions
Materials and Supplies Debt Service Housing Project
Conservation Utilities Repairs and Maintenance
FY26 Expenditures by Expense Type
Transfer Out $1,608,905 95.35%
Contract Services $35,040 2.08%
Administrative Fee $15,805 0.94%
Other Expense $12,040 0.71%
Materials and Supplies $7,500 0.44%
Contributions $5,800 0.34%
Repairs and Maintenance $1,900 0.11%
Conservation $400 0.02%
FY27 Expenditures by Expense Type
Transfer Out $1,410,817 94.55%
Contract Services $31,258 2.09%
Administrative Fee $20,507 1.37%
Other Expense $14,066 0.94%
Materials and Supplies $8,056 0.54%
Contributions $6,000 0.40%
Repairs and Maintenance $1,500 0.10%
$3M
$1M $994K
$1M
$2M $1M
---$$$222000,,,999111000
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$1M
0 $1M
$2M
$3M
$4M

1.69M 1.49M
Table of Contents 7.4 Special Revenue Funds
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 197 499 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Materials and Supplies $756 $7,759 $7,150 $6,950 $7,500 $350 4.90% $8,056 Contract Services $63,895 $45,774 $27,850 $26,340 $35,040 $7,190 25.82% $31,258 Repairs and Maintenance - - - $3,200 $1,900 - - $1,500
Utilities - $1,240 $4,000 - - -$4,000 -100.00% -
Other Expense $5,096 $3,893 $15,400 $4,900 $12,040 -$3,360 -21.82% $14,066 Administrative Fee - $6,246 $4,700 $13,500 $15,805 $11,105 236.28% $20,507 Debt Service -$20,910 $9,025 - -$9,587 - - - -
Transfer Out $1,043,922 $914,339 $1,384,200 $1,272,708 $1,608,905 $224,705 16.23% $1,410,817 Contributions $5,235 $5,487 $5,800 $5,645 $5,800 - 0.00% $6,000 Conservation - $290 $5,000 $1,522 $400 -$4,600 -92.00% - Total Expenditures $1,097,995 $994,053 $1,454,100 $1,325,178 $1,687,390 $233,290 16.04% $1,492,204 Expenditures by Expense Type
Table of Contents 7.4 Special Revenue Funds

500 of 791
Grants Fund
Fund 201
This fund is designed 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.

Summary
The City of Cotati is projecting $3.71M of revenues and expenses in FY2026, which represents a 174.9% increase over the prior year, and $1.52M of revenues and expenses in FY2027, which represents a 59.0% decrease compared to FY2026. For revenues, approximately 50% of funds are related to grants with the remaining balance made up of matching transfers from other funds.

Revenues vs Expenditures Summary
Revenue Actual Revenue Budgeted Expenses Actual Expenses Budgeted 2022 2023 2024 2025 2026 2027
0 $1M
$2M
$3M
$4M
$5M
Table of Contents 7.4.1 Grants Fund
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 199 501 of 791
Revenues by Source
FY 2025/26 :
$3,711,329
FY 2026/27 :
$1,520,760
+$2,361,329 (+174.9% vs.
prior year)
-$2,190,569 (-59.0% vs. prior
year)
Historical Revenues by Source
Transfers In Grants COPS GRANT-SLESA
Other Revenues
FY26 Revenues by Source
Transfers In $1,991,750 53.67%
Grants $1,719,579 46.33%
FY27 Revenues by Source
Grants $1,065,000 70.03%
Transfers In $455,760 29.97%
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($
Change)
FY 25 vs. FY
26 (%
Change)
FY 2027
Budgeted
Other Revenues

LCL-SCPA GRANT FOR
eBIKES
- - - $8,582 - - - -
INVESTMENT EARNINGS $88 - - - - - - -
Total Other Revenues $88 - - $8,582 - - - -
Grants
Revenue-Local Road
Safety Plan
$34,457 - - - - - - -
$273K
$4M
$4M
$1M
$4M
$2M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $2M
$4M
$6M

3.71M 1.52M
Revenues by Source
Table of Contents 7.4.1 Grants Fund

502 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($
Change)
FY 25 vs. FY
26 (%
Change)
FY 2027
Budgeted
Revenue-Local Hazard
Mitigation Plan
$11,634 $6,971 - - - - - -

COUNTY - MOBILE

RESPONSE GRANT
$144,457 $65,222 $65,000 $65,000 $188,329 $123,329 189.74% $65,000

PUBLIC SAFETY

WELLNESS GRANT
$15,000 - - - - - - -
GRANTS-SONCATT $1,792 $1,223 - - - - - -
FED- CALOES GRANT - - - $40,050 - - - -

FED-QUICK STRIKE

GRANT REVENUE
$832,849 $417,151 - - - - - -
FED-CA FEMA COVID-19 $76,003 - - - - - - -
FED-PARKS PROP 68 $146,234 $36,558 - - - - - -
FED-HWY 116 - - - - $1,000,000 - - $1,000,000

STATE-MTC-REDWOOD

DRIVE & CYPRESS
- - $104,000 $204,297 - -$104,000 -100.00% -

STATE - MTC SIDEWALK

GAP CLO
- - $500,000 $500,000 - -$500,000 -100.00% -

STATE-MTC-REDWOOD

DRIVE & CYPRESS
- $904,804 - - - - - -
STATE-ABAGSUNFLOWER PARK
- - - - $531,250 - - -
Total Grants $1,262,425 $1,431,930 $669,000 $809,347 $1,719,579 $1,050,579 157.04% $1,065,000

COPS GRANT-SLESA

STATE-ABAG/MTC

PRIORITY

DEVELOPMENT AREA
- - - $463,000 - - - -
STATE-REAP GRANT $19,487 $50,000 - - - - - -

STATE - SOLAR APP

GRANT REVENUE
- - - $22,605 - - - -
Total COPS GRANT-SLESA $19,487 $50,000 - $485,605 - - - - Transfers In

OPER TRANS IN-QUICK

STRIKE PROJECT
$533,645 $495,480 - $1,056 - - - -

OPER TRANS IN-STATE
SB2
$10,622 - - - - - - -

OPER TRANS IN - LEAP
GRANT
$26,416 - - - - - - -
OPER TRANS INABAG/MTC PRIORITY

DEVELOPMENT AREA
- $132,046 - - - - - -

OPER TRANS IN-MOBILE

RESPONSE
$36,326 $68,208 $79,000 $79,000 - -$79,000 -100.00% $79,000

OPER TRANS IN - PROP
68 $2,163,874 $160,709 - - - - - -
OPER TRANS IN-HWY 116 - $285,522 $362,000 $362,000 $468,000 $106,000 29.28% $376,760 OPER TRANS INREDWOOD DRIVE &

CYPRESS
- - - $26,022 - - - -
OPER TRANS INSIDEWALK GAP

CLOSURE
- $116,074 $235,000 $183,724 - -$235,000 -100.00% -
OPER TRANS INREDWOOD DRIVE &

CYPRESS
- $1,696,249 - - - - - -
OPER TRANS INSUNFLOWER PARK
- $35,831 $5,000 $30,000 $1,523,750 $1,518,750 30,375.00% - Total Transfers In $2,770,884 $2,990,119 $681,000 $681,802 $1,991,750 $1,310,750 192.47% $455,760 Total Revenues $4,052,883 $4,472,049 $1,350,000 $1,985,336 $3,711,329 $2,361,329 174.91% $1,520,760 Table of Contents 7.4.1 Grants Fund
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 201 503 of 791
Expenditures by Expense Type
FY 2025/26 :
$3,711,329
FY 2026/27 :
$1,520,760
+$2,361,329 (+174.9% vs. prior
year)
-$2,1090,569 (-59.0% vs. prior
year)
The City has elevated the priority of investments in streets infrastructure as well as City buildings and parks. See the Capital Improvements section of the budget for more detailed information about specific projects programed for Fiscal Years 2025/26 and 2026/27.

Historical Expenditures by Expense Type
Capital Project Other Expense Economic Development
Transfer Out Capital Improvement Project
FY26 Expenditures by Expense Type
Capital Project $3,523,000 94.93%
Other Expense $188,329 5.07%
FY27 Expenditures by Expense Type
Capital Project $1,376,760 90.53%
Other Expense $144,000 9.47%
$273K
$4M
$4M
$1M
$4M
$2M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $2M
$4M
$6M

3.71M 1.52M
Table of Contents 7.4.1 Grants Fund

504 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs. FY
26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Contract Services - - - $40,050 - - - -
Other Expense $195,487 $134,652 $144,000 $166,605 $188,329 $44,329 30.78% $144,000 Transfer Out $124,182 $50,000 - $180,922 - - - -
Economic Development $63,475 $132,046 - $290,544 - - - - Capital Project $3,636,602 $4,166,080 $1,206,000 $1,307,099 $3,523,000 $2,317,000 192.12% $1,376,760 Capital Improvement
Project
- - - $8,582 - - - -
Total Expenditures $4,019,745 $4,482,778 $1,350,000 $1,993,802 $3,711,329 $2,361,329 174.91% $1,520,760 Expenditures by Expense Type
Table of Contents 7.4.1 Grants Fund
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 203 505 of 791
Gas Tax
Fund 203
Funds are received from City of Cotati's share of the Highway User 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.

Summary
The City of Cotati is projecting $230K of revenue in FY2026, which represents an 8.3% increase over the prior year. Revenues in FY2027 are anticipated to fall by 2.3% to $225K when compared to the prior fiscal year. Budgeted expenditures are projected to increase by 38.9% to $286K in FY2026, and increase by a further 35.1% to $386K in FY2027.

Revenues vs Expenditures Summary
Revenue Actual Revenue Budgeted Expenses Actual Expenses Budgeted 2022 2023 2024 2025 2026 2027
0 $100K
$200K
$300K
$400K
$500K
Table of Contents 7.4.2 Gas Tax

506 of 791
Revenues by Source
FY 2025/26 :
$229,790
FY 2026/27 :
$224,560
+$17,555 (+8.3% vs. prior
year)
-$5,230 (-2.3% vs, prior year)
The revenues for this fund are derived from add-on Highway User Taxes collected by the State from gasoline sales. The rates for the addon taxes are disclosed on the California Department of Tax and Fee Administration site here. Estimates for revenues are derived using the California Local Government Finance Almanac. This consulting firm provides a useful summary of the local streets and road estimates and how they are derived here. Historically, the estimates provided by this firm have been deemed fairly accurate and reliable for budgeting purposes.

Historical Revenues by Source
Taxes Other Revenues
FY26 Revenues by Source
Taxes $224,390 97.65%
Other Revenues $5,400 2.35%
FY27 Revenues by Source
Taxes $220,060 98.00%
Other Revenues $4,500 2.00%
$183K
$199K
$222K $212K
$230K $225K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $100K
$200K
$300K
230K 225K
Table of Contents 7.4.2 Gas Tax
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 205 507 of 791
Category
FY 2023
Actual
FY 2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Taxes $197,760 $213,028 $211,535 $224,018 $224,390 $12,855 6.08% $220,060 Other Revenues $1,526 $8,993 $700 $15,100 $5,400 $4,700 671.43% $4,500 Total Revenues $199,286 $222,021 $212,235 $239,118 $229,790 $17,555 8.27% $224,560 Revenues by Source
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Expenditures by Expense Type
FY 2025/26 :
$285,800
FY 2026/27 :
$386,000
+$80,000 (+38.9% vs. prior
year)
+$102,000 (+35.1% vs. prior
year)
These funds are to be used for road maintenance and rehabilitation and, as such, the expenditures are primarily made up of transfers to the capital projects funds that hold the total cost of the capital projects being built during a fiscal year. Other expenditures include the annual contributions to the SCTA.

Historical Expenditures by Expense Type
Transfer Out Contributions Debt Service
FY26 Expenditures by Expense Type
Transfer Out $280,000 97.97%
Contributions $5,800 2.03%
FY27 Expenditures by Expense Type
Transfer Out $380,000 98.45%
Contributions $6,000 1.55%
$184K
$140K
$6K
$206K
$286K
$386K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $100K
$200K
$300K
$400K
$500K
286K 386K
Table of Contents 7.4.2 Gas Tax
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 207 509 of 791
Category
FY 2023
Actual
FY
2024
Actual
FY 2025
Adopted
Budget
FY 2025
Estimate
FY 2026
Budgeted
FY 25 vs.

FY 26 ($
Change)
FY 25 vs.

FY 26 (%
Change)
FY 2027
Budgeted
Debt Service $187 $546 - -$1,000 - - - -
Transfer Out $134,943 - $200,000 $290,000 $280,000 $80,000 40.00% $380,000 Contributions $5,235 $5,487 $5,800 $5,645 $5,800 - 0.00% $6,000 Total Expenditures $140,365 $6,033 $205,800 $294,645 $285,800 $80,000 38.87% $386,000 Expenditures by Expense Type
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Fund Balance
The fund balance for FY2025 is to be increased to about $79.95K as the City builds up reserves through increased anticipated revenues, which will then be used to support future streets projects as intended for these special revenues funds.

Fund Balance Projections
Restricted
Fund Balance FY 2023 FY 2024 FY 2025 FY 2026
FY 25 vs. FY 26 ($
Change)
FY 25 vs. FY 26
(% Change)
FY 2027
Restricted $73,507 $290,587 $235,060 $190,650 -$44,410 -18.89% $29,210 Total Fund
Balance
$73,507 $290,587 $235,060 $190,650 -$44,410 -18.89% $29,210 0 $74K
$291K
$235K
$191K
$29K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $100K
$200K
$300K
$400K
Financial Summary
Table of Contents 7.4.2 Gas Tax
Biennial Budget for Fiscal Year 2025/26 and 2026/27 | Cotati Page 209 511 of 791
MTC Street- Go Sonoma!
Fund 204
This fund is utilized for revenues received for transportation and streets 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 2004, Sonoma County passed the Traffic Relief Act (Measure M), which provides a 0.25% sales tax that is used to maintain local streets, accelerate the widening of Hwy 101, restore and enhance transit services, support the development of passenger rail services and build safe bicycle and pedestrian routes. In order to maintain our status as a self-help county and deliver critical transportation projects, voters approved Go Sonoma in 2020. The Sonoma County Transportation Authority (SCTA) administers the sales tax receipts and distributions.

Summary
The City of Cotati is projecting $144K of revenue in FY2026, which represents a 75.0% increase over the prior year. Revenues in FY2027 are anticipated to fall by 0.3% to $143K when compared to the prior fiscal year. Budgeted expenditures are projected to increase by 273.3% to $280K in FY2026, and decrease by 28.6% to $200K in FY2027.

Revenues vs Expenditures Summary
Revenue Actual Revenue Budgeted Expenses Actual Expenses Budgeted 2022 2023 2024 2025 2026 2027
0 $50K
$100K
$150K
$200K
$250K
$300K
Table of Contents 7.4.3 MTC Street - Go Sonoma