UN-AUDITED
THIRD QUARTER
FINANCIAL & INVESTMENT
REVIEW
Fiscal Year 2025/26
City of Cotati
FINANCIAL
REPORTING
• Citywide Overview • General Fund • Enterprise Funds • Cash & Investments
CITY WIDE
CITYWIDE REVENUES &
EXPENSES
CITYWIDE OVERVIEW
Revenues & Expenses On Target
Revenues are at 66.9% of Budget
• General Fund Revenues Sales tax and Other Tax are collected 1-2 months after relevant taxing period.
• Capital Projects and Internal Service Funds –Due to the timing of transferring of funding needs.
Expenses are at 63.8% of Budget
• Capital Projects Funds– are subject to timing of the projects in place and related activity incurred during the fiscal year.
• Internal Service Funds - are subject to timing of purchases of equipment or use of deferred compensated absences for employees.
GENERAL
FUND
Third Quarter
Budget Analysis
COMPARATIVE
REVENUES & EXPENDITURES
Reserves as of 03/31/2026 = $5.3M = 59% of Annual Op Ex Property Tax, $ 1,231,619
Sales Tax, $ 3,350,146 Other Taxes, $ 521,685
Licenses, Permits &
Franchises, $
452,707
Rent, $
119,010
Other
Agencies,
$ 172,796
Other Revenues, $
257,944
Community
Development
Charges, $
363,361
Public
Works
Charges
, $...
Public
Safety...
Investment
Earnings, $
112,324 C...
Transfers In,
$ 174,223
GENERAL FUND RESILIENCE
EXCEPTIONS
Cash Coverage Ratio = 16.85% Goal of 25%
• This is primarily due to timing – pending April Property Tax Community Event Identified = Closed Cannabis Business
Distribution
• Future Structural Revenue Loss - $120,000 / Year
Oper. Revenues / Oper. Expenditures =96% Goal 110%
• Weakened from prior year but within budget expectations. • Continued monitoring for increased risk.
ENTERPRISE FUNDS
SUMMARY OF WATER & WASTEWATER
FUNDS
ENTERPRISE FUNDS ANALYSIS
WATER
• Revenues 84.2% of budget
• Expenses 56.4% of budget
WASTEWATER
• Revenues 77.4% of
budget
• Expenses 67.6% of
budget
Operating Fund Reserves* = $2.6M =
87% of Annual Op Ex
Combined Reserves* = $3.1M =
131% of Annual Op Ex
Operating Fund Reserves* = $641K =
17%
of Annual Op Ex
Combined Reserves * = $981K =
26% of Annual Op Ex * Reserve Balance is the Fund Balance less non-spendable items including interfund loans and actuarial accruals for pension liability.
SEWER FUND RESILIENCE
EXCEPTIONS
Oper. Revenues / Oper. Expenditures =97% Goal
110%
• Improved from prior year and within budget
expectations.
• Continued monitoring for increased risk.
CASH & INVESTMENTS
SUMMARY OF CASH AND INVESTMENTS AT
MARCH 31, 2026
• Total Exceeds
$13.8M
• In line with the
City adopted
investment
policy.
• Enough to meet
operational
needs for next 6
months in fiscal
year.
• City Utilizes
Pooled Cash
and
Investments
CONCLUSION
Fiscal Year was primarily on track with Budget and
improved over fiscal year 2025/26
City staff will continue to update the Council with
quarterly financial reports as well as the audited
financial for Fiscal Year 2025/26
City staff are committed to exercising prudence
and integrity in the management of public funds
and provide transparent accountability for its use.