To the Residents of Cotati,
The City is proud to present you with Cotati’s Popular Annual Financial Report (PAFR) to the Community for the fiscal year (FY) ended June 30, 2025. This report provides an overview of the City’s financial condition and a brief analysis of where City revenues come from and where those dollars are spent.
Most of the information in this report is drawn from the financial information appearing in the FY 2024/25 Annual Comprehensive Financial Report (ACFR).
The City remains dedicated to preparing a full ACFR as it is the “gold standard” in financial reporting and provides the following; citywide detailed statistical and demographic information; management’s discussion on the goals, economic condition and objectives for the City, as well as a complete financial presentation of basic financial statements prepared in conformance with Generally Accepted Accounting Principles (GAAP). The ACFR was audited by an independent auditor who provided a clean opinion for the year under audit. While the financial data in this document is derived from the ACFR, the supplemental statistical, economic and demographic data may be taken from various other publicly available sources.
The goal of this document is to provide a summary of the City’s financial information in an easy to read, informative way with less accounting jargon. As such we have highlighted in bold some of the unavoidable accounting terms and provided a glossary of those terms on page 10. We hope you will find this information to be interesting and informative. We welcome your comments and suggestions for future reports and we look forward to the opportunity to explain any information provided both here and within the ACFR. Both the ACFR and this document are available for viewing at City Hall and on the City's website at www.cotaticity.gov.
City Overview
Our city’s unusual name “Cotati” (ko-ta-tee) derives from the Kota’ti, a peaceful tribe of Coast Miwok Native Americans who populated this temperate valley for generations.
In 1844, the Mexican government granted the Rancho Cotate to Captain Juan Castaneda for his military services. The grant included the land on which Cotati would be built. The ranch passed hands a few times until 1849 when Dr. Thomas Page purchased it. The Page family held on to the land for many years and laid out the hexagonal plaza and roads named after his sons which are still evident today around Cotati’s downtown La Plaza Park. This hexagonal plaza is one of only two in the US and has been designated as a California Historical Landmark due to this unique layout.
1 City of Cotati
Table of Contents:
Pages 1-2 Introduction, City Overview, Financial Highlights for Fiscal Year 2024/25 Pages 3-4 Statement of Net Position, Net Position Trends, Goals/Accomplishments Pages 5-6 Statement of Activities, Revenues Details and Discussions Pages 7-8 Expenses Details, Revenues & Expenses Trends, Property Tax Breakdown Pages 9-10 Cotati Facts, Council Members, City Resources, Cotati Maps, Glossary of Terms In order to retain its identity, Cotati incorporated in 1963 and currently operates under a city manager/city council structure.
The City provides a variety of services to its residents, which includes; police services, recreation services, water and sewer services, maintenance of City parks, streets and storm drains, and City buildings. Additionally, the City provides for planning and zoning, code enforcement, issuance of building permits, and acts as the flood plain administrator.
Due to new commercial construction and increased home prices during the past fiscal year, the County Assessor office has again increased property assessed valuations which we anticipate will result in continued growth in property taxes for the upcoming year.
The City is focused on diversifying the current sources of revenue to provide a more stable and resilient general fund and promote increased economic activity in Cotati. This includes developing local lodging options to generate a new general fund revenue stream called Transient Occupancy Taxes (TOT); and enhancing the local cannabis industry to generate additional fund revenue (Cannabis Business Tax). The City encourages visitation to the City and businesses to generate new economic activity for our local businesses and preserve and diversify the existing sources of sales and property taxes.
Cotati’s population increased slightly to 7,323 residents in 2024 due to demographic changes in household types and more student residents as remote classes, which were introduced during the COVID-19 restrictions at Sonoma State University, are gradually phased out.
Financial Highlights for Fiscal Year 2024/25
The City prepares two types of financial statements that measure its finances differently; Government-wide and Fund statements. The Government-wide Statements present the full City operations in a similar manner to those of a private business; whereas Fund Statements provide detailed financials in a short term annual budgetary basis on specific funds. In order to provide clear and consistent information, all of the following financial highlights are presented based on the Government-wide statements with notes to differentiate the City governmental operating funds (primarily the General Fund) from the Water and Sewer funds, which are also known as Enterprise funds.
Highlights of the City of Cotati’s financial activities include:
• Net position decreased by $58.8 thousand, primarily due to use of the remaining funds held in the street bonds project funding to pay for future Street Improvements. • Cash and investments increased by $0.9 million to $19.4 million while lease receivables and capital assets decreased by a combined $2.5 million to $54.6 million. The largest change in capital assets was due to the completion of some significant capital projects, leading to historically higher depreciation versus new assets. The City continues to prioritize cash collections and received more outstanding grant reimbursements from the State
• The General Fund’s end of year fund balance decreased by $1.9 million to $7.0 million, primarily due to the use of funds for capital projects associated with grant matching for the street project on Redwood Drive, as well as the sidewalk connection projects.
Additionally, operational expenses for Insurance and Utilities continues to increase while primary revenues of Sales Tax and Property Tax remain mostly flat. 2 STATEMENT OF NET POSITION
*Detailed financial reports can be found in the City’s FY 2024/25 ACFR available on the City’s website at https://online.fliphtml5.com/iibpe/uldu/ or at City Hall. 3 The Statement of Net Position presents information on all of the City’s assets and liabilities at a point in time, with the difference between the two reported as net position. Over time, increases or decreases in net position is one indicator of whether the City's financial condition is improving or weakening.
As of
June 30, 2025
As of
June 30, 2024
Assets
Current and other assets $ 22,307,699 $ 22,799,604
Capital assets 53,159,945 54,019,659
Total Assets 75,467,644 76,819,263
Deferred Outflow of Resources
Deferred outflows or resources related to pensions 3,519,073 5,487,127 Liabilities
Current and other liabilities 2,887,353 2,883,408
Long-term liabilities 15,796,365 16,949,990
Total Liabilities 18,683,718 19,833,398
Deferred Inflows of Resources
Deferred inflows of resources related to pensions 4,330,997 6,453,099 Net Position
Net investment in Capital assets1 42,816,555 45,344,848 Restricted net position2 6,392,195 10,014,001
Unrestricted net position3
6,763,252 671,916
Total Net Position $ 55,972,002 $ 56,030,765
1Capital Assets less accumulated depreciation and any remaining debt used to acquire the assets. 2Net position whose use is restricted by statute or law. 3Net position available to meet City obligations in future fiscal years.
Total Net Position For Last Ten Years
The net position is primarily made
up of investments in capital assets.
These investments are all the City
infrastructure such as streets, roads,
wells, drainage systems and
buildings less accumulated
depreciation and outstanding debt.
Net position steadily increased from
2016 to 2023, but has shown a
levelling off over the last 2 years, as
capital depreciation has increased
compared to new assets.
Goals and Accomplishments
The Administrative Services Department continues to work diligently to report on the financial condition of the City. Reports provided this year include the budget in brief document for the public, quarterly financial updates, our first formal long-range financial forecast, and continued enhanced budget documents to the standards of the California Society of Municipal Finance Officers (CSMFO) and Government Finance Officers Association (GFOA) for award submission. The City was honored to be one of only a few hundred government agencies to receive the GFOA Triple Crown Award. The GFOA's Triple Crown recognizes governments who have received GFOA's Certificate of Achievement for Excellence in Financial Reporting, Popular Annual Financial Reporting Award, and the Distinguished Budget Presentation Award.
The City advanced several housing and economic development initiatives, including implementing the 6th Cycle Housing Element and co-hosting a regional housing fair with Rohnert Park. It completed the Cotati Density Bonus Program to encourage projects that meet community goals and finalized the Santero Way Specific Plan to support mixed-use development near the SMART station. Efforts to expand housing options also continued through new outreach and funding resources for accessory dwelling units (ADUs).
Community safety remained a top priority through expanded partnerships and public engagement. The Police Department worked with Rohnert Park and Sonoma State University on the 24/7 SAFE Team crisis response program and launched the Community-Police Advisory Committee to strengthen trust and transparency.
Enhanced DUI enforcement, continued de-escalation and bias training, and community events like National Night Out and Coffee with a Cop reinforced safety and connection with residents.
Significant infrastructure and environmental improvements were completed citywide.
Major street repairs on Redwood Drive and Cypress Avenue, sidewalk gap closures, and storm drain repairs improved public safety and accessibility. Park revitalization progressed with construction at Putnam Park and designs for new projects citywide, while the new asset management system improved tracking and maintenance of City facilities.
4 In Millions
STATEMENT OF ACTIVITIES
FY 2024/25 FY 2023/24
Revenues:
Program revenues:1
Charges for services $ 8,058,713 $ 7,341,538
Operating grants and contributions 822,565 1,119,905
Capital grants and contributions 541,196 680,046
9,422,474 9,141,489
General Revenues:2
Property taxes 2,212,345 2,110,629
Sales and use taxes 6,007,328 6,091,096
Other taxes 1,528,372 1,467,716
Other revenue 1,233,652 1,115,834
10,981,697 10,785,275
Total Revenues 20,404,171 19,926,764
Expenses:3
General government 1,575,556 1,264,167
Public safety 4,499,782 4,951,027
Community development 2,162,195 3,562,140
Public works 5,508,941 4,727,368
Interest on long-term debt 288,437 302,939
Water 2,500,939 2,346,268
Wastewater 3,927,084 3,620,353
Total Expenses 20,462,934 20,774,262
Change in Net Position (58,763 ) (847,498)
Net Position - Beginning $ 56,030,765 $ 56,878,263
Net Position - Ending4
$ 55,972,002 $ 56,030,765
1Revenues derived directly from fees, charges and grants 2All revenues that are not related to programs
3 Total expenses in total City-Wide increased in 2024/25 by $0.3 million.. See page 7 for further detail. 4 Net position decreased by $58.8 thousand, or 0.1% during the fiscal year. The largest part of net position is capital assets with $42.5M.
Please see the City of Cotati 2024/25 ACFR for more detail. 5 The Statement of Activities describes the revenues received, expenses paid or incurred during a fiscal year. Explanations of specific revenues and expenses are provided on the following pages.
Where the money comes from…..
For fiscal year ending June 30, 2025, revenues primarily changed due to increases in Charges for Services and Property Taxes, which was offset by decreases in Sales Tax and Grant revenues. Property Taxes have continued to increase due to an increasingly buoyant housing market. See page 5 for totals by revenue category. *Detailed financial reports can be found in the City’s FY 2024/25 ACFR available on the City’s website at https://online.fliphtml5.com/iibpe/uldu/ or at City Hall.
Revenues
6 Where the money goes…..
7 *Detailed financial reports can be found in the City’s FY 2024/25 ACFR available on the City’s website at https://online.fliphtml5.com/iibpe/uldu/ or at City Hall.
For fiscal year ending June 30, 2025 expenses decreased primarily within Community Development, related to lower costs for the Santero Way Plan, offset by the increase in Public Works expenses for ongoing Streets and Parks projects. The decreases seen in Public Safety are primarily due to lower training costs and vehicle expenses, as the department held off on new vehicle purchases. Health benefits, pension costs and insurance continue to increase across all departments.
Expenses
Total Revenues & Expenses Last Ten Fiscal Years
8 Overall, the City’s operational revenues vary more than expenses with major fluctuations including a decrease in 2017 of approximately $2.2 million due to a decrease in grant revenue as capital projects were completed, then steadily increased in 2018 through, 2023 primarily related to capital infrastructure grants and contributions, and due to the Voter approved Measures G & S 1% Sales tax. Revenues in 2024 decreased due to lower interest rates and lower spending on taxable items, but have stabilized in 2025 due to increased charges for services. City expenses have remained fairly consistent over time, but have seen an increase in the past 3 fiscal years due to significant increases in operational costs, primarily from insurance, pension, utilities and labor, and due to investment in capital improvements throughout the City.
Where Your Property Tax Dollar Goes…..
Under Proposition 13, property tax is levied on the assessed value of a property by the County, equal to 1% of the assessed value. For taxes levied and collected by the County on properties within the City of Cotati, the City only receives 10 cents on each property tax dollar.
Schools receive a total of 53 cents on the dollar, including the Cotati-RP Unified District, Santa Rosa Junior College District, and the State Education Augmentation Fund, and Schools Administration. The remainder is allocated to County government (20 cents); Rancho Adobe Fire District (11 cents); and other agencies (6 cents).
Visit the City of Cotati Website at http://www.cotaticity.gov/ The City’s website includes information about:
• Councilmembers
• Council Meetings/Agenda
• Recreation Programing/Events
• Job Opportunities
• City Permits and Forms
• City Newsletter
• Department Information
• Water/Sewer Utility Management
Financial Information
• Budget
• Annual Financial Statements
(ACFR)
• Cotati Annual Report to the
Community (PAFR)
• Annual Measure S Reports
• City Master Fee Schedule
• AB 1600 Annual Reports on
Development Impact Fees
Online Services
• Provide Suggestions to City
• Register for Recreation Camp/Class
• Apply and pay for a Dog License
• Rent a City Park or Facility
• Apply for Building & Alarm Permits
• Pay Utility Bills/Stop & Start Service
• Apply for City Jobs
• Emergency Preparedness City Plan/
Alert Sign Up
• Apply and pay for a Business License
• Public Facilities Repair Requests
Laura Sparks
Councilmember
Sylvia Lemus
Vice Mayor
Ben Ford
Mayor
City of Cotati Quick Facts1
Population 7,3232 Area 1.88 square miles
Elevation 112 feet Miles of Streets 23
Acres of Parks 30.4 Streetlights 331
Traffic Signals 8 Manholes 9,147
Water Main Miles 30 Fire Hydrants 438
Averages
Median Age 38.0 years Per Capita Income: $58,554
Low Temperature 38-53 °F Unemployment Rate 3.4%
High Temperature 57-82 °F % Pop. w/ HS Degree 95.0%
Annual Precipitation 25” Oct.-May % Pop. w/ College Degree 37.1% 1 Estimates
2Population has decreased 3.4% from 7,584 in the April 2020 Census.
Cotati City Council (June 30, 2025)
9 John T. Savage
Councilmember
Susan Harvey
Councilmember
City of Cotati Online
City of Cotati Map
Brief Summary of Terms
Annual Comprehensive Financial Report (ACFR): is a set of comprehensive financial statements on the financial state of the City as of the fiscal year end.
Audit: an annual examination performed by an independent accountant firm of the City's internal controls and finances.
California Society of Municipal Finance Officers (CSMFO): a professional association of state, county, and local government finance officers in California.
Enterprise Funds: a part of government that accounts for the goods or services provided to the public for a fee and is self-supporting, similar to a private business. Example includes Water and Sewer operations.
Fiscal Year (FY): a twelve month period from July 1-June 30 to which the annual budget applies, and financial transactions are recorded and subsequently audited.
Fund: a grouping of accounts used to record all the special purpose financial transactions for which the fund was created.
Fund Balance: the difference between assets and liabilities—in essence, what would be left over if the assets were used to pay the liabilities.
Fund Statements: detailed information on the primary governments funds whereby fund assets are expected to be used within a year and current year liabilities are typically expected to be repaid or satisfied with current resources.
Generally Accepted Accounting Principles (GAAP): uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles.
Government Finance Officers Association (GFOA): a professional association of state, provincial, and local finance officers in the United States and Canada.
Government-wide Statements: report financial information based on when expenses occur and revenues are earned rather than when cash transactions occur, similar to that of a private business.
Net position: the calculation of all of the City’s assets minus the current and future liabilities and net pension deferrals.
Popular Annual Financial Report (PAFR): a financial report specifically designed to be readily accessible and easily understandable to the general public.
Restricted Fund Balance: this represents funding that can only be spent for very specific purposes, generally due to laws.
Transient Occupancy Tax (TOT): a tax imposed on travelers who stay in temporary lodging facilities within the City. The current tax rate is ten percent of the rent charged by the operator (CMC
3.12.030). 10
For detailed map visit: https://tinyurl.com/2p8tzej3
City of Cotati
Department of Administrative Services
201 West Sierra Ave.
Cotati, CA 94931
(707)792-4600
Acknowledgements
The preparation of this report could not be accomplished without the efficient and dedicated services of the entire staff of the Administrative Services Department. We would like to express our special appreciation to Angela Courter and Neil Tomlinson. We would also like to thank the Mayor and City Council members for their support, stewardship and commitment in planning and conducting the financial affairs and the long-term fiscal health of the City in a responsible and efficient manner.
For more information about the City or to view the full ACFR please visit https://online.fliphtml5.com/iibpe/uldu/ and for more financial information visit the City Website at www.cotaticity.gov.