CITY OF
PETALUMA
CALIFORNIA
FY 2025- 2026
PROPOSED OPERATING AND CAPITAL IMPROVEMENT
BUDGET
July 1, 2025 – June 30, 2026
Resilient and Safe
Community
City Manager’s Office (707)778-4345 [email protected] Finance Department (707)778-4352 [email protected] 11 English Street, Petaluma CA, 94952
www.cityofpetaluma.org
City of Petaluma
Fiscal Year 2025-2026 Proposed Operating Budget
and Capital Improvement Program
City Council
Kevin McDonnell, Mayor Frank Quint, District 4 Council Member Janice Cader Thompson, District 1 Council Member Alex Decarli, District 5 Council Member John Shribbs, District 2 Council Member Brian Barnacle, District 6 Council Member Karen Nau, Vice Mayor, District 3 Council Member
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CITY ORGANIZATIONAL STRUCTURE AND EXECUTIVE STAFF
CITY MANAGER
PEGGY FLYNN BRIAN COCHRAN
City Manager Assistant City Manager
Provides general management oversight
and direction to all City Departments. Also
provides administrative support to the City
Council.
CITY CLERK
CAITLIN CORLEY
City Clerk
Liaison between the public, media, Mayor,
and Councilmembers. Maintains City
records, oversees elections, and prepares
and publishes City Council Agendas.
CITY ATTORNEY
ERIC DANLY
City Attorney
Provides legal advice to City staff and the
City Council; defends the City against
lawsuits.
FINANCE
JESSIE GOOCH
Finance Director
Provides financial management and
accounting services for all City of Petaluma
Departments.
FIRE
JEFF SCHACH
Fire Chief
Provides fire, rescue and emergency medical
services. Also oversees and inspects building
and development to assure compliance with
fire safety codes.
HUMAN RESOURCES
LINDA LE
Human Resources Director
Recruits employees, negotiates labor
contracts, provides benefits for city
employees and oversees the City’s Risk
Management program.
POLICE
BRIAN MILLER
Police Chief
Provides public safety through crime
prevention, community policing, and code
enforcement services.
PUBLIC WORKS
PAUL KAUSHAL
Public Works and Utilities Director
Oversees the City’s public improvement
requirements and manages water resources,
wastewater treatment, streets, public
transit, and flood management.
ECONOMIC DEVELOPMENT AND OPEN
GOVERNMENT
INGRID ALVERDE
Economic Development and Open
Government Director
Oversees the economic development and
information technology divisions and is the
liaison for public information.
PARKS AND RECREATION
DREW HALTER
Parks and Recreation Director
Oversees the City’s parks and recreation,
park, and facility maintenance.
COMMUNITY DEVELOPMENT
BRIAN OH
Community Development Director
Oversees the City’s Planning, Building and
Housing services.
WATER RESOURCES AND UTILITIES
CHELSEA THOMPSON
Water Resources and Utilities Director
Oversees the City’s water resources,
wastewater treatment and storm water
systems.
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CITY MANAGER BUDGET MESSAGE
Budget Message and Transmittal
FY 2025-26 Operating Budget and Capital Improvement Program May 5, 2025
Honorable Mayor and City Councilmembers, City Staff, and Petaluma Community—
I am pleased to submit to you the budget for the City of Petaluma for Fiscal Year 2025/26. As I outline below, and as you will see throughout, this upcoming year will be one of exciting progress on many fronts, continued focus on leveraging resources (Measure U, Measure H, Transient Occupancy Tax, grants and community partnerships), and new infrastructure investments to benefit the entire community. Resource constraints and the overall economic environment are tightening, meaning we must be diligent and strategic to leverage funds for maximum impact. With the City Council’s goals and priorities as a guide, the Fiscal Year 2025/26 budget is poised to deliver on a number of key Council goals while also continuing to hone City operations and upgrade service delivery.
Everything we do in the City of Petaluma is people-powered. This includes a vast network of collaborators: our staff, our business community, our schools and non-profit organizations, our multi-jurisdictional partners, and our talented, passionate, creative Petaluma community—all of whom work together and invest their time, treasure, and talent to create safe streets, to facilitate housing, to ensure safe spaces and mental health resources for our youth, to care for our unsheltered, to provide crisis intervention services to those in need, to rebuild, to repair, to reimagine our incredible Petaluma for all who live, work, and enjoy our City.
Some positive trends we are seeing for our upcoming Fiscal Year 2025/26:
• Property Tax Revenue Growth - FY 26 General Fund Property Tax is estimated at $15M – which represents a 4.2% growth over our most recent estimates of current year property tax collections. This growth represents a combination of factors that contribute to property tax changes – sales of homes, property re-assessments, new development, etc.
• New Measure H Funding – We are thankful to the voters of Sonoma County for adopting Measure H last year. This new sales tax measure, dedicated to fire response services and disaster / hazard mitigation will provide critical resources for the Petaluma Fire Department. Estimated to generate approximately $4.8 million annually for Petaluma, these funds will finance the construction of a new fire station; provide the nine firefighters needed to staff the new station; and fund equipment upgrades and key emergency medical services staff.
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CITY MANAGER BUDGET MESSAGE
• Transient Occupancy Tax Strength – In a continued recovery from the pandemic and including the relatively recent completion of a new hotel in Petaluma, our TOT revenues are anticipated to remain strong, with about $3.7 million in revenue. While lower than what we anticipate in the current year, Sonoma County in general and Petaluma specifically continue to be attractive, noteworthy tourist destinations, and we expect strength in this revenue source.
• Success with Grant Funding – Petaluma continues its strong success record in obtaining grant funds from a variety of granting agencies to implement City projects. Overall, we are projecting an increase of $1.9 million in grants in 2025/26. And we will continue to aggressively pursue these opportunities as they become available. • General Fund Emergency Reserves – This critical emergency reserve continues to be maintained at more than 15% of operating expenditures.
Trends that we are watching:
• Bradley Burns Sales Tax and Measure U Revenues – While still projected to grow by about 1% or less next year, this is a substantially reduced / flattened rate of growth compared to what we have seen the past few years. As a source of about $30 million in annual revenue to the City, flat or declining sales tax can significantly impact Petaluma’s budget, with growth in expenditures being closer to 2%. Continued economic development focus, specifically on re-tenanting retail spaces, will be critical to bolster this important revenue source.
• Overall Economic Environment – Many macroeconomic factors remain relatively positive, but as of this writing uncertainty is high. Tariff policy, inflation, interest rates, and consumer sentiment, among others, all show the level of fear and anxiety that is present in the economy right now. Unexpected economic shocks or recession can significantly impact City revenues, and we monitor trends carefully to identify signs of weakness.
Measure U Update
Having had the benefit of four years of Measure U revenues, we are proud of the transformation of this City and the City organization. Just a few ways that that transformation is evident and how the infusion of Measure U dollars into the organization has facilitated that transformation.
• A balanced budget, no structural deficit and maintenance of emergency reserves • We have added staff and augmented service in all departments in the City: more parks maintenance workers, more police officers, more fire/ems/paramedic staff, more code enforcement officers, and more public works staff.
• We are able to provide programs and services in areas we would have never been able to fund prior to Measure U: a full-time emergency services manager; the SAFE Team mobile crisis intervention program; dedicated community engagement staff; dedicated
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CITY MANAGER BUDGET MESSAGE
housing and homelessness program staff; dedicated multi-modal transportation and mobility project managers; professional-level IT staff to ensure cyber-security and implement new technology to more efficiently and effectively deliver services to our community.
• We have added management analysts in nearly all departments. These positions are critical to being a 21st century City because they are the key implementors of City programs and initiatives; analyze financial and operational data; apply for, track and manage grants; update essential policies to ensure the City is implementing best practices; and assist the City in tracking our progress on community priorities. • Attracting $200 million+ in grant funds and leveraging partnerships that build City capacity over the past four years for projects and initiatives including:
o Permanent supportive housing for formerly homeless residents o Non-congregate "tiny home" shelter units
o Advanced water meter replacements
o Recycled water pipeline expansion
o EV charging station infrastructure
o Major planning efforts around both SMART stations, Kenilworth Park, and the fairgrounds
o SAFE Team funding
o Design of a new emergency operations center
o Grazing and vegetation management of our parks and open spaces • Issued a $20 million bond to jumpstart multiple major road pavement / active transportation projects such as Maria Dr; McDowell Blvd; Garfield Dr; Howard Dr; etc. • Active planning and design underway for a new combined police / fire public safety facility at the Fairgrounds.
As a reminder, there were eight stated community priorities that were the impetus for voter approval of Measure U (all equal in priority):
• Fire Prevention & Protection - Maintain and prevent cuts to firefighting equipment/fire engines and adequate 24-hour staffing.
• Emergency Preparedness & 911 Response - Ensure public health, wildfire, natural disaster emergency preparedness and maintain 911 emergency response times to ensure first responders can respond quickly to calls for services. • Addressing Homelessness - Continue homeless prevention programs and community partnerships while ensuring our local businesses, public areas, and neighborhoods are safe, stable, and secure for everyone.
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CITY MANAGER BUDGET MESSAGE
• Public Safety - Maintain properly trained community based public safety officers, community outreach programs, and ensure adequate 24-hour staffing. • Safe Public Spaces & Recovery - Keep public areas safe and clean; support local business and job retention through recovery
• Repairing Roads & Fixing Potholes - Enhance street maintenance, repaving, and pothole repair on Petaluma’s 396 miles of streets
• Road Safety - Address existing road hazards and improve road safety for drivers, bicyclists, and pedestrians, including maintaining safe routes to schools. • Deferred Maintenance - Improve conditions of local roads by better addressing $141 million in repairs backlog and prevent road ratings from further decreasing per the standard Pavement Condition Index
Since the voter approval of Measure U in November 2020, among all of the day-to-day operations that your City staff complete, we have also been laser-focused on rebuilding and strengthening our infrastructure, leveraging our resources, such as Measure U, to make our community’s dollars go further, and investing in our people, both within the organization and throughout our community.
Regarding the implementation of Measure U, we are continuing substantial investments in our roads--$55M over five years, and as evidenced by the major renovations of North McDowell Blvd, Maria Dr, and others that have recently been completed. We have strategically added staffing and support in most City departments, to ensure that Petalumans continue to receive excellent services and to allow us to complete major initiatives as directed by the City Council.
Staff compensation has been brought up to the market median in our area, to allow us to recruit and retain highly talented employees, and we are able to properly plan for annual cost- of-living adjustments so that compensation remains competitive. Finally, we have leveraged Measure U funding to obtain substantial grant funding from State and Federal agencies and invested in key City priorities, such as dredging the Petaluma River; implementing our homeless services strategic plan; and making climate-ready investments such as electric vehicle charging stations and building efficiency upgrades.
With that said, we must also recognize that Measure U is not an unlimited resource and was never going to be the panacea for all of the fiscal demands and needs in our City. Our hundreds of millions of dollars in deferred infrastructure maintenance that has accumulated over decades will, similarly, likely take decades to correct. And while we have made great strides to establish Petaluma as an employer of choice with competitive pay and benefits, failing to maintain that status over time will lead to reduced employee retention and staff capability. We approach these and other funding challenges with resolve and creativity to ensure we are staying on course.
We are proud of what the City has accomplished over the past five years, and we are proud to be considered a leader in the County and the region on many fronts. Measure U was the critical locally-controlled revenue source that we needed to fundamentally change the trajectory of Petaluma and set us up for a long-term future of success. However, as we said both before and
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CITY MANAGER BUDGET MESSAGE
after Measure U was approved: it is not the panacea to solve all the fiscal demands on our City.
We need to continue to prioritize economic development and business support, revenue generation, housing for all, and efficiency and innovation to continue our progress in providing exceptional quality of life to our community for generations to come.
Petaluma Leading
As you’ll note throughout this document, our departments have numerous goals that they have each outlined in their respective sections. Many of those objectives relate in some way to the City Council goals and objectives, while others are more operational and internally focused.
Additionally, there are several areas of emphasis that the City will be keenly focused on over the next year that don’t necessarily fit neatly into a single goal or line-item. These areas of leadership include:
• Organizational Development – Over the past year, we are creating a high-performing organization and building a culture that values trust, excellence, collaboration, and accountability — always striving for both impact and innovation, and ensuring exceptional customer service. We will continue this work to ensure that Petaluma is an employer of choice; is achieving new benchmarks for diversity, equity and inclusion; and is fostering a culture of excellence in all that we do. I am excited about some new initiatives and professional development and leadership opportunities that we have for our employees over the upcoming year, which will ultimately deliver results for our Petaluma community.
• General Plan 2050 – The City’s new general plan is expected to be completed this next fiscal year. This significant policy document is four years in the making and will guide development of our City for the next 25 years. The plan will include the City’s already approved Housing Element and Blueprint for Climate Action. An updated zoning code will follow shortly thereafter which will sync the City’s land zoning to the new general plan.
• Expanded Economic Development Focus – Robust economic development programs are investments in our city's future — creating jobs, improving quality of life, diversifying the economy, and building a resilient, thriving community. We have created a multi-disciplinary and departmental approach that brings our economic development and community development resources together to support our existing businesses and entrepreneurs, attract new businesses and industries and encourage a mix of industries to help protect the community from economic downturns, and work with our property owners to tenant their building and activate our neighborhoods.
By expanding Petaluma’s business base, it will grow the City’s tax revenues, allowing for more investment in infrastructure, schools, parks, and services while diversifying the revenue sources we rely on to provide city services and without overburdening our residents with fees and taxes—and ultimately leads to a vibrant, livable community and an improved quality of life.
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CITY MANAGER BUDGET MESSAGE
• Housing For All – implementation of our Housing Element continues: With the completion of several affordable housing developments in the City over the past few years, and the commencement or completion of more this year, Petaluma continues to provide much needed housing to our community. However, we still have much to do in order to provide the diversity of housing our residents need, including developing innovative policy tools, securing public-private partnerships, exploring other financing models, construction techniques, and adaptive reuse solutions to incentivize and achieve the variety of housing options for our community and meet our goal of ‘functional zero’ for our homeless community.
• Parks, Programming, and our Environmental Legacy – We are reshaping how we plan, manage, and experience our parks and open spaces by looking for opportunities to design our parks to be climate-resilient green infrastructure and double as stormwater management systems and heat-mitigation zones while providing a wide-array of options for recreation, wellness and respite, and community gathering that reflect the needs of a diverse cultural, age-friendly, and all-ability community.
This year we anticipate bringing our aquatics program in-house, the construction of a new skatepark, the installation of new turf at Lucchesi, improvements to our swim center, and expanding our successful grazing program to ensure regenerative landscapes in our open spaces.
• Creating a “One Petaluma” experience on the City-owned fairgrounds property—After assuming management of this 55-acre property in the center of Petaluma, we have been hard at work to ensure the annual fair continues and fund transitional improvements in the infrastructure to encourage pilot pop-up events, programming, and community events and activities. We are also excited about kicking-off our community masterplan process, funded by a $1M+ resiliency planning grant, for the property following the guiding principles from our Fairgrounds Advisory Panel and setting the course for future generations to enjoy this gem in the center of our city.
Capital Improvement Focus
As important as our people, culture and services are in Petaluma, our Capital Improvement Program (“CIP”) is a significant portion of this 2025/26 budget, at an estimated $72 million this year and more than $600 million over 5 years. With a combination of Measure U, Impact Fee Funds, Water and Wastewater Enterprise Funds, grant funding, and many other funding sources, we are making once-in-a-generation investments in virtually all categories of infrastructure to ensure Petaluma is a fun, safe, healthy, sustainable and well-functioning City for decades to come. This year, we continue to utilize a prioritization process that matches the most critical and impactful projects with resources to keep them moving forward. Some key projects on which you should see substantial progress in the upcoming year, among dozens of others, include:
• Various facility improvement projects to keep our buildings safe and healthy for both employees and community members – seismic upgrades and renovations at Fire Station #1; Design of the new combined public safety facility; HVAC retrofits and electrification
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CITY MANAGER BUDGET MESSAGE
at City facilities; improvements at the Keller St garage; and completion of the Library enhancement project.
• Safe and Complete Streets and Active Transportation Improvements – In addition to citywide pavement improvements and restoration, we also have significant repaving efforts on Howard St and Rainier Ave this year; planned access improvements around the Petaluma North SMART Station; pedestrian and quick-build improvements; and design of the Caulfield bridge.
• Replacement and renovation of the turf field at Lucchesi. • Construction of the new skate park at Lucchesi Park.
• Our Petaluma River will once again be dredged (in a four-year cycle!) to help maintain the channel.
• Water and sewer main replacements in several locations, including notably along Howard Street.
• Completion of the Advanced Metering Infrastructure project. • Completion of phase 1 of the Adobe Rd recycled water expansion. • Design of the PIPS Parallel Forcemain project
More detail on a myriad of infrastructure projects can be found in the Capital Improvement Program section of this budget.
Leveraging and Maximizing our Resources
An under-told story of the City of Petaluma over the past few years has been the unprecedented success we have had in securing outside funding for critical community projects – many of which will be moving forward in visible ways during this next fiscal year. Some projects that will benefit from grant funding in this next fiscal year alone include:
• $1.2 million for the Fairgrounds masterplan;
• $2M+ for Station area planning grants for both the Downtown SMART Station and the Petaluma North SMART Station areas;
• $1.5 million for the Petaluma North SMART Station access improvements;
• $1.25 million for Safe Streets quick build projects;
• $4.4 million from the FAA for airport taxiway renovations;
• $1.5 million for additional electric buses for our Transit system;
• $2.3 million in grant funds from multiple sources for the Tertiary Treatment System and other upgrades at Ellis Creek Water Recycling Facility.
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CITY MANAGER BUDGET MESSAGE
Other grants received over the past several years have helped fund: our mobile crisis SAFE Team; homeless encampment clean-up and wrap-around services for our homeless residents; the People’s Village non-congregate shelter project; seismic studies of City buildings; electric vehicle charging infrastructure and emergency generators at City facilities; Re-Leaf citywide tree planting initiatives; grazing and vegetation management of our parks and open spaces, and basic universal income to keep our residents housed. Many of these programs are ongoing and continue to receive grants from funding agencies for operations in 2025/26 and beyond.
That said, the City recognizes the funding alterations occurring at the federal level and are preparing a plan to triage and address as appropriate, and as we can with existing funding, the needs of our most vulnerable communities.
Acknowledgment
I would like to thank and recognize our dedicated staff who work each year to review, propose, and prepare the operating and capital budgets for the Council and the community. Our City’s budget is the result of an incredibly talented, hardworking, and dedicated team. The City’s Budget Team manages the budget analysis and preparation through the hard work of our Finance Director Jessie Gooch, Assistant Finance Director Corey Garberolio, Finance Analyst Isabel Craft, Finance and Accounting Manager Janine Tedrow, and the entire Finance Department staff who contributed to the development of this policy document.
Developing the operating and capital budgets are truly a team effort and rely on the expertise of many, including, but not limited to:
• City Manager’s Office— Suzie Terry, Patrick Carter, Brian Cochran • City Attorney—Eric Danly, Jordan Green, Dylan Brady, Lisa Rogers • City Clerk – Caitlin Corley, Daibel Montilla Fernandez-Bolt • Community Development—Brian Oh, Karen Shimizu, Jerome Hoberg, Andrew Trippel, Heather Hines
• Economic Development & Open Government—Ingrid Alverde, Brendan Galten, Jamieson Bunn, Nancy Sands
• Fire—Jeff Schach, Chad Costa, Jessica Power, David Catalinotto • Parks & Recreation—Drew Halter, Kat Reisinger, Nicole Stark • Police—Brian Miller, Nick McGowan, Kate McCoy
• Public Works – Paul Kaushal, Chelsea Green, Jonathan Sanglerat, Andie Morhous, Delana Bradford
• Utilities—Chelsea Thompson, Dan Herrera, Oriana Hart, Matt Pierce, Jason Archer, Patrick Pulis, Daniel Park, Brittany Rossi
A special thanks to our Mayor and City Council for ensuring that this policy document serves all of our residents and for being strong financial stewards for our community.
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CITY MANAGER BUDGET MESSAGE
Continuing to Innovate and Deliver
Given that our budget is the most significant policy document the City produces, I could not be more proud of the vast diversity of projects, programs, and initiatives that we are recommending for City investment. This $348M budget continues to move Petaluma forward and lead locally, regionally, and nationally, in many ways. We honor our community as our guide and appreciate the City Council's policy leadership that enable us to realize our vision as a responsive, innovative, and effective municipal government organization. While priorities can shift from year to year, we pride ourselves on being nimble and creative to deliver outstanding services, safe and sustainable infrastructure and climate-first action for our community.
My sincere hope is that every resident, visitor, business and non-profit entity can look forward to seeing themselves in some program or project in this Fiscal Year 2025/26 budget document. I am honored and energized to work in partnership with our Council, City staff and community to deliver on those opportunities, in Fiscal Year 2025/26 and in the years to come.
In your service,
Peggy Flynn
City Manager
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DISTINGUISHED GFOA BUDGET AWARD
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TABLE OF CONTENTS
Table of Contents
Budget Coversheet ................................................................................................................... i City Organizational Structure .................................................................................................. ii City Manager’s Budget Message ............................................................................................ iii GFOA Distinguished Budget Award ....................................................................................... x ii Table of Contents ................................................................................................................. x iii
Citywide Overview
Citywide Budget Overview & Highlights ........................................................................... 1 Budget Development Process ........................................................................................ 16 Petaluma Government and Policies ............................................................................... 17 Glossary of Terms ........................................................................................................... 21 Acronyms ........................................................................................................................ 24
Summary Schedules
2025-26 All Funds Budget Summary .............................................................................. 27 Fund Summary ............................................................................................................... 29 Sources and Uses ........................................................................................................... 33 Summary Schedules ....................................................................................................... 35 Capital Vehicle and Equipment ...................................................................................... 54
Climate Action Baseline .............................................................................................................. 57 General Fund Overview .............................................................................................................. 65 Measure U Fund Overview ......................................................................................................... 73 Special Revenue Funds Overview ............................................................................................... 79 Enterprise Funds Overview ........................................................................................................ 85 Utility Funds Overview ............................................................................................................... 89 Internal Service Funds Overview ................................................................................................ 93 City Departments
City Council ..................................................................................................................... 97 City Attorney .................................................................................................................. 99 City Clerk ...................................................................................................................... 105 City Manager ................................................................................................................ 111 Community Development ............................................................................................ 117 Economic Development & Open Government ............................................................. 123 Finance ......................................................................................................................... 133 Fire ............................................................................................................................... 139 Human Resources......................................................................................................... 145 Non-Departmental ....................................................................................................... 149 Parks and Recreation, Community Services ................................................................. 157 Police ............................................................................................................................ 165 xiv
TABLE OF CONTENTS
Public Works ................................................................................................................. 173 Water Resources & Utilities ......................................................................................... 185 Capital Improvement Program
Capital Project Overview ............................................................................................. CIP-i CIP Table of Contents ............................................................................................... CIP-viii Fully Funded Projects ................................................................................................. CIP-xi Partially Funded/Unfunded Citywide Capital Infrastructure Needs ......................... CIP-xvi CIP FY 2025-26 Uses and Sources............................................................................... CIP-1 CIP FY 2025-26 Budget by Project .............................................................................. CIP-2 CIP Budgets through FY 2029-30 ................................................................................ CIP-4 CIP - Airport ................................................................................................................ CIP-5 CIP - Facilities ............................................................................................................ CIP-15 CIP – Parks ................................................................................................................ CIP-35 CIP – Public Works .................................................................................................... CIP-51 CIP – Recycled Water ............................................................................................... CIP-83 CIP – Surface Water .................................................................................................. CIP-99 CIP – Transit ............................................................................................................ CIP-105 CIP – Wastewater Utility ........................................................................................ CIP-111 CIP – Water Utility .................................................................................................. CIP-135 Legislative
Resolutions and Ordinances ........................................................................................... L-1 Appendices
Allocation of Internal Service Funds and Administrative Overhead Charges ................ A-1 Transfers Out ................................................................................................................. A-3 Transfers In .................................................................................................................... A-7 Full Time Positions – Allocation by Department.......................................................... A- 11 FY 26 Ad ditional (New) Proposed Positions by Department ....................................... A-17
CITYWIDE OVERVIEW
CITYWIDE BUDGET OVERVIEW & HIGHLIGHTS
The City of Petaluma’s Fiscal Year 2025-2026 Budget comprises the following operating fund types and the Capital Improvement Program (CIP):
• General Fund
• Measure U Fund
• Special Revenue Funds
• Trust Funds
• Enterprise Funds
• Utility Funds
• Internal Service Funds
• Capital Improvement Program
• Successor Agency Funds
The majority of the appropriations recommended support the General Fund, Utilities Funds and the Capital Improvement Program. Citywide utilities funded by the City’s Utility user rates bring water to residents and businesses and collect and/or treat wastewater. The second largest source of expenditures is the General Fund, which primarily funds police, fire, public works, parks and recreation, economic development, and public engagement as well as internal support, management, and administration. In Fiscal Year 2026, Capital Improvement Funds provided by impact fees, user rates, grants, and other sources will be used to rehabilitate roads, enhance and replace aging utility infrastructure, and implement park projects.
The City’s Fiscal Year 2025-2026 Budget recommends expenditures totaling $348,117,599 million. This year’s budget includes an increase of $41.4 million over the Fiscal Year 2024-25 Revised Budget. Adjusted to remove Transfers In and Transfers Out1, which are $85.2 million each, appropriations for 2025-2026 are $262.9 million and estimated revenues are $221.2 million. Table 1 on the following page shows the change in Citywide appropriations from the FY 2024-25 Revised Budget to FY 2025-26 Budget. Also shown is a chart illustrating the total FY 2026 Budget allocated by percentage to each fund type. Any difference between appropriations and sources is offset from available fund balance (reserves).
Appropriations are supported by total Citywide estimated revenues of $221.2 million as well as available fund reserves, in some cases. The following table, Table 3, presents the changes in revenues from Fiscal Year 2024-25 Revised Budget to Fiscal Year 2025-26 Budget by fund type. 1 Transfers are utilized to move dollars from a fund receiving the revenue to the fund that is making the expenditure. The most common type of intragovernmental transfer for the City is moving dollars from an operating fund into a capital improvement project fund for a project. Tables below exclude designated reserves. 1 CITYWIDE OVERVIEW
Table 1 – Citywide Appropriations and Changes
Table 2 – Citywide Positions by Function
Fund Type FY 2025 Revised
Budget FY 2026 Budget FY 25 Revised- FY 26
Budget Change Percent Change
General Fund 78,877,435$ 80,358,744$ 1,481,309$ 1.88% Measure U Sales Tax 15,683,299 15,708,000 24,701 0.16% Measure H Sales Tax 1,932,000 3,851,128 1,919,128 99.33% Special Revenue Funds 32,180,042 44,141,929 11,961,887 37.17% Trust Funds - - - 0.00% Debt Funds 913,719 913,219 (500) -0.05% Enterprise Funds 17,941,826 18,936,190 994,364 5.54% Utility Funds 82,041,394 88,461,390 6,419,996 7.83% Internal Service Funds 16,498,447 14,654,222 (1,844,225) -11.18% Capital Project Funds 56,484,818 76,950,890 20,466,072 36.23% Successor Agency Funds 4,174,745 4,141,887 (32,858) -0.79% Total 306,727,725$ 348,117,599$ 41,389,874$ 13.49% Function Funded
Police 102.60
Fire 69.00
Public Works 64.00
Parks & Recreation 29.00
Community Development & Housing 17.00
Utilities 78.00
Support Services(Clerk, Legal, Finance, Human Resources, IT, etc.) 57.80 Total Citywide Staff 417.40
* More details on funded positions can be found in the Appendix section of this document FY 2025-26 Full Time Positions Funded by Function
2 CITYWIDE OVERVIEW
Table 3 – Citywide Revenues and Changes
Fund Type FY 2025 Revised
Budget FY 2026 Budget FY 25 Revised- FY 26
Budget Change Percent Change
General Fund 77,997,435$ 79,738,493$ 1,741,058$ 2.23% Measure U Sales Tax 15,615,000 15,708,000 93,000 0.60% Measure H Sales Tax 3,225,000 4,486,560 1,261,560 39.12% Special Revenue Funds 31,686,453 25,596,867 (6,089,586) -19.22% Trust Funds 3,127 2,625 (502) -16.05% Debt Funds 2,038,667 366,671 (1,671,996) -82.01% Enterprise Funds 15,011,162 19,620,140 4,608,978 30.70% Utility Funds 59,374,084 66,418,129 7,044,045 11.86% Internal Service Funds 16,492,858 14,496,202 (1,996,656) -12.11% Capital Project Funds 54,039,691 75,834,772 21,795,081 40.33% Successor Agency Funds 4,275,574 4,141,887 (133,687) -3.13% Total 279,759,051$ 306,410,346$ 26,651,295$ 9.53% Note: Revenues may be less than expenitures, any difference is offset from fund balance.
Citywide Revenues by Category FY 2026
Taxes Revenue 66,461,472$
Permits and Fees 6,004,399
Use of Property Revenue 6,193,410
Intergovernmental 37,034,658
Charges for Services/Sales 28,411,246
Utility Revenue 63,144,100
Sales Revenue 859,900
Other Revenue 13,077,034
Total Revenues 221,186,219$
Note: Excluding Transfers In
3 CITYWIDE OVERVIEW
OVERVIEW BY FUND TYPE/PROGRAM
General Fund
Departments within the General Fund provide core essential community services, such as public safety (including police and fire protection and medical transport services), parks and recreation, and public works, as well as critical support functions such as city manager, finance, legal, city clerk, and human resources. All core services are primarily supported by locally controlled revenue sources that include sales tax, property tax, transient occupancy tax and fees.
This entire budget document, including the proposed General Fund budget, represents a team collaboration of staff from every City department. Creating a balanced budget while considering the many needs of the community is not an easy task. Every department was asked to evaluate their opportunities and challenges, with the Finance Department and City Manager’s Office then reviewing these items in the context of the larger economy and community. Many of the same challenges we’ve faced these last few years still exist today – persistent inflation, slower supply chain, workforce challenges, and world events. The proposed FY 26 General Fund budget represents our continued commitment to prudent fiscal management and to delivering high quality services to the Community. We continue to efficiently manage day-to-day operations, utilizing technology options for customers to keep City business moving forward. The City is committed to ongoing collaboration with our partners in the community as well as other government agencies to assist and provide support citywide.
The City’s sales tax revenues, the largest portion of General Fund revenues, are showing a slight decline from FY 2024/25; revenues are anticipated to stay flat or decrease in FY 26. Other revenues such as business license, permit and fees and charges for services continue to show growth and we remain cautiously optimistic regarding their positive financial trends. Transient Occupancy Tax has recovered, and the strength of these revenues allow support of various City needs. Staff will continue to monitor the monthly and quarterly financial results and will revise and request adjustments as appropriate.
The state of the economy continues to be a concern. Persistent inflation, high interest rates, supply chain challenges, and ongoing world events could trigger a recession which could impact tax revenues. Within Petaluma, tourism has recovered to near pre-pandemic levels and property values remain high. The revenues estimated and incorporated into the 5-year forecast remain conservative. Each year revenues are monitored closely, and adjustments brought to Council as needed.
4 CITYWIDE OVERVIEW
We continue to be thankful to the community for the passage of Measure U, the City’s 1-cent transaction and use tax measure passed by Petaluma voters in November of 2020. This tax brings essential revenue to the City that was not available historically. In addition to allowing the City to continue providing core essential services to our residents by providing support to the General Fund, the additional funding provides for many other needs citywide such as continued investment in our staff who deliver the high-quality services to our residents, as well as addressing deferred maintenance on City roads and facilities. With the recent passage of Measure H, Sonoma County’s 1/2 -cent sales tax to support fire prevention and protection services, the General Fund will have additional much-needed resources to put towards our community.
General Fund revenues are expected to be up overall by approximately 2% due to projected growth in the coming year. When the new Measure H Sonoma County ½ cent sales tax is included with the General Fund, revenues are up by approximately 3.7%. Measure U estimated sales tax revenue and expenditures have been included in the proposed FY 25-26 budget. The expenditures included align with community priorities and the balanced spending plan presented to Council. Staff have held two meetings with the Measure U Committee and have discussed the proposed spending plan for the year. Measure U estimated sales tax revenue incorporates low growth of approximately 0.6% when compared to the prior year. This sales tax is a district tax which means 100% of the amount collected is kept locally. Due to the changing economy, as the year progresses and if trends emerge that differ from these estimates, adjustments will be made. We will continue to monitor revenues closely and bring forward information as soon as we are made aware.
Despite having additional sales tax revenue, it’s important to remember this source is finite.
While it provides financial resources that the City has not historically had, the needs far outweigh the available resources. We must continue to prudently manage our finances to maintain reserves and provide core services. Given the need to produce a balanced budget while also attempting to address many department requests, general fund departments were required to closely analyze services & supplies, budgets and reduce wherever possible. Any additional needs, both operating and one-time, were brought forward for discussion. Only those requests considered critical to continue operations were approved and incorporated into the FY 2025-26 budget.
General Fund Appropriations
The City’s Fiscal Year 2025-26 Budget includes General Fund total appropriations of $80,358,744, an increase of $1.5m or 1.9% over the Fiscal Year 2024-25 Revised Budget. With the addition of the new Measure H Countywide Fire Sales Tax passed by voters in March of 2024, an additional $4.5m of revenue is expected in the new year to support General Fund Fire 5 CITYWIDE OVERVIEW
Department costs. The General Fund budget includes salary and benefit appropriations for 242.17 full-time positions that perform a variety of core essential services such as 24-hour public safety, public works, parks and recreation, and the many other City services that provide departments the support necessary to operate. This budget includes funding for workforce stabilization that was originally incorporated in FY 22 and will be ongoing into the future and includes appropriations for staffing needs to address increased and changing needs in several departments, as well as negotiated cost of living adjustments and anticipated costs from ongoing negotiations. Services and supplies appropriations include the funds necessary to perform day-to-day operations such as operational supplies and contract services for both existing and newly identified needs that are essential for delivery of services.
Intragovernmental appropriations provide funding for support services such as Information Technology, Risk Management, and General Services that are funded by charges to operating funds, including the General Fund. Capital needs change from year to year as priorities are identified. Lastly, Transfers Out account for transactions that require dollars to move from the General Fund to other funds where the expenditures will occur.
The increase of $1.5m is primarily due to the following:
• $1.3m for negotiated cost of living adjustments
• $0.3m for position allocation changes
• $0.8m for increased retirement costs due to PERS UAL mandatory discount rate reduction resulting in greater required contributions
• $0.1m in Workers Compensation costs due to cost increases and to maintain reserves at adequate level
• $0.3m in less grant offsets due to less Police Department grants funding specialized services
• $0.6m slightly increased health premiums, employee benefit selection • $0.1m increase in supplies related to anticipated ongoing increases in fuel costs • $0.01m increased electricity/gas/water rates expected to continue in FY 2025/26 • $0.3m more for one-time transfers out to fund ongoing projects such ERP replacement, and General Plan funded by fees
FY 24-25 FY 25-26 Amount of Percent
Expenditures Revised Budget Change Change
Salaries 37,922,387$ 38,074,561$ 152,174$ 0.4% Benefits 24,191,147 26,112,915 1,921,768 7.9% Services/Supplies 9,563,852 9,039,178 (524,674) -5.5% Utilities 1,434,303 1,453,268 18,965 1.3% Intra-governmental 4,204,235 3,877,654 (326,581) -7.8% Capital 154,004 50,050 (103,954) -67.5% Transfers Out 1,407,507 1,751,118 343,611 24.4% Total Expenditures 78,877,435$ 80,358,744$ 1,481,309$ 1.9% 6 CITYWIDE OVERVIEW
The increases above are partially offset by reductions in the following:
• -$1.1m less one-time overtime costs in the Fire Department directly offset by reduction in revenue
• -$0.1m less of staffing costs for communications due to the removal of a Communications Project Manager position
• -$0.1 m less part time costs expected in FY 25/26
• -$.7m less in professional services costs resulting from the removal of one-time non- recurring costs not expected to reoccur in FY 25/26 as well as a required 10% reduction in services implemented in all departments as a cost saving measure • -$0.1 less in one-time capital costs
• -$0.3m risk management charges partial rate reduction city-wide implemented in FY 25/26 to provide cost savings using available fund balance while maintaining adequate reserves
General Fund Revenues
General Fund Expenditures are supported by revenues of $79.7 million (excluding sources from designated reserves) in Fiscal Year 2025-26, an increase of approximately $1.7m or 2.2% over the FY 2024-25 Revised Revenue Budget. The main drivers in the overall increase are focused in three categories – Taxes (+820,100), Intergovernmental (+$535,789), and Transfers In from Measure U (+$1,147,082). These increases have been offset by decreases, primarily in Charges for Services (-$650,598) and Transfers In (-$204,405). The table on the following page shows General Fund revenues by type:
FY 24-25 FY 25-26 Amount of Percent
General Fund Revenues Revised Budget Change Change
Taxes 34,705,400$ 35,525,500$ 820,100$ 2.4% Permits and Fees 1,587,100 1,571,700 (15,400) -1.0% Fines and Penalties 362,900 435,500 72,600 20.0% Investment Earnings and Rent 1,081,070 972,300 (108,770) -10.1% Intergovernmental 9,384,555 9,920,344 535,789 5.7% Charges for Services 14,369,418 13,718,820 (650,598) -4.5% Other 73,700 218,000 144,300 195.8% Transfers-In 2,819,045 2,615,000 (204,045) -7.2% Transfers-In from Measure U 13,614,247 14,761,329 1,147,082 8.4% From Designated Reserves 845,642 699,650 (145,992) -17.3% Total General Fund Revenues 78,843,077$ 80,438,143$ 1,595,066$ 2.0% 7 CITYWIDE OVERVIEW
Taxes are increased $820,100 over the Revised 2024-25 budget. Sales tax projections provided by the City’s sales tax consultant show a slight increase of approximately 0.9%. This estimate takes into consideration an analysis of different sectors of sales tax including but not limited to auto sales, food products, construction, transportation, and hospitality. Property Tax adjustments of approximately 4.2% are included which consider projected assessed valuation growth and new development. Other revenue categories such as business license tax, fees and permits, and charges for services have been analyzed and are expected to continue to grow in FY 26. Given the concerns over the nature of the economy, the Finance department will continue to closely monitor revenues and recommend adjustments as needed. Interest rates remain higher than anticipated, however we do anticipate interest rates to decline slightly; revenue budgets have been decreased to reflect the decreased amount of revenue anticipated.
Intergovernmental revenues of $9,920,344 include revenues from other government agencies such as Motor Vehicle License Fees, Prop 172 sales tax for public safety, and Intergovernmental Transfer Program cost recovery for medical transports. These revenues are $535,789 greater than in 2024-25, which primarily reflects an increase in Motor Vehicle License Fees due to assessed valuation growth. Charges for Services are included at $13,718,820 and account for service revenue such as Ambulance Transport fee revenue and Intragovernmental charges. The decrease of $650,598 is the result of increased intragovernmental charges to other funds for services provided by central service support departments such as City Manager, Finance, City Clerk and City Attorney offset by reduced IGT revenue in the new year. This increase supports increased costs and workforce stability in these departments. Also contributing to the overall increase is increased fee revenue from various charges for services including ambulance transport reimbursements. Transfers-In represents funds coming in from the Transient Occupancy Tax fund to assist the General Fund with staffing costs associated with supporting tourism activity in the community. Also included are funds from other sources to support Police CAD functions. Transfers-In from Measure U are used to support a wide range of General Fund activities, from supporting the budget to prevent cuts to services to hiring and retaining highly qualified staff and increasing service levels to the public, as well as paying for technology upgrades, programs, projects and the rising cost of services and supplies due to inflation. See the Measure U Overview section for more information.
General Fund Reserves
The General fund beginning operating reserve at July 1, 2025, is expected to be $0. Fiscal Year 2025-26 Estimated Revenues slightly exceed Expenditures resulting an operating reserve balance of $79,400 at June 30, 2026.
At June 30, 2025 a designated reserve estimating $14.6 million is maintained separate from the operating reserve and is estimated to amount to 19% of the General Fund operating budget. 8 CITYWIDE OVERVIEW
Approximately $14.1m of this balance is reserved for emergencies and is to be maintained at the Council’s minimum 15% targeted policy or until City Council policy changes. As one-time revenues are received, or additional unexpected savings occur, funds will continue to be reserved for emergencies and maintained at a minimum of 15%.
Measure U Fund
The Measure U district transaction and use tax was passed by voters in November 2020, and supplies General Fund dollars that are tracked in a separate fund for ease of reporting to the Oversight Committee. Measure U sales tax revenues are estimated at $15.7 million for FY 25-
26. This is an increase of $93,000 or 1% over the FY 2024/25 revised budget. Appropriations included are representative of the themed categories shown below which were high priorities for the Community. The largest use of Measure U dollars is to provide support to the General Fund for continuity of essential services; this support corrects the General Fund structural deficit and ensures that essential and critical services continue to be provided to the community. These services include police and fire protection as well as parks and recreation programs. Without Measure U, the General Fund would have had to lay off employees and drastically cut services. With this funding, the General Fund has stability, and the City has been able to make strides on other priorities. The General Fund Support line continues to include appropriations for aligning position classifications, compensation and annual cost-of-living adjustments necessary to remain competitive, recruit and retain highly qualified staff, as well as position additions intended to improve services and meet demand. Also included in the proposed budget are funds for infrastructure investments to address deferred maintenance on City roads and buildings and priority initiatives. Various priority initiatives have been funded using Measure U since the inception of the tax, including emergency preparedness, climate initiatives and various programs and capital projects. Appropriations are supported by estimated revenues and any fund reserves at the end of the fiscal year carryforward into the next year. Appropriations from this fund are transferred to other funds, largely the General Fund, and Capital Projects fund to cover the cost of capital infrastructure and priority projects. where the above costs reside.
The Measure U ending fund balance on June 30, 2025, is estimated at $0k and remains at $0 as of June 30, 2026. The Measure U forecast shows a balanced budget for the duration of the 5- year forecast. More detailed information can be found in the Measure U Fund overview section of this document.
Special Revenue, Trust, and Debt Funds
Special Revenue Funds account for revenues that are received for specifically identified purposes and cover corresponding appropriations. The special revenue funds that typically 9 CITYWIDE OVERVIEW
account for the larger share of revenues and corresponding appropriations in this fund grouping are Impact Fees, Street Maintenance and Transient Occupancy Tax. The Fiscal Year 2025-26 Budget recommends Special Revenue Funds, Trust and Debt appropriations of $45.1 million, representing an increase of $12 million over the Fiscal Year 2024-2025 Revised Budget.
This decrease is primarily due to the following:
• $2.8 million increase in Traffic impact fees to support road related CIP projects • $4.0 million increase in Street funds to support road related CIP projects • $4.0 million increase in City Facilities Impact Fees uses due to increased facility improvements planned in FY 25/26
• $1.5 million increase in Storm Drain Impact Fees for increased project activity managing surface water and the City’s storm drain system in FY 2025/26 • $.7 million decrease in Parkland Impact Fees for increased CIP project activity to occur in FY 24/25 for the Lucchesi Skate Park and the Turning Basin Docks • $1.9 million increase in Grants to support Programs and Projects- Safe Streets Quick Builds, North SMART Station Access Improvement Project, Electric Vehicle Chargers, Public Safety Building project and Corona Creek Flood Reduction and Habitat Enhancement grant and project.
• $2.1 million decrease programmed in Housing Funds largely due to less housing projects funded by Housing in Lieu in FY 25/26
• $.5 million increase in various special revenue funds for programs and projects citywide The Fairgrounds Fund was added as a special revenue fund in FY 2023-24 with the planned transfer of the fairgrounds to the City. The 50-year lease of this 55-acre property to the State expired, and the City of Petaluma has regained control of the property and resumed responsibility beginning January 1, 2024. The City has made immediate strides on deferred maintenance needs and has taken over event programming for the site. The fund accounts for fair operations and property management of the grounds, including events, as well as the associated expenditures.
More detailed information can be found in the Operating and Capital Improvement Program sections of this document.
Enterprise Funds
Enterprise Funds account for specific services that are funded directly through user fees. This fund grouping includes the Airport, Building, Marina, and Transit funds. These funds are intended to be fully self-supporting and are not subsidized by the General Fund or any other fund. The Fiscal Year 2025-26 Budget includes appropriations of $18.9 million for Enterprise 10 CITYWIDE OVERVIEW
Funds. This represents an increase of $1 million, or 6% over the Fiscal Year 2024-25 Revised Budget. This increase is primarily due to the following:
• $2.3 million increased spending in the Airport fund for increase capital projects programmed in FY 25/26 – Taxiway A and B Rehabilitation • -$1.0 million decrease in the Transit fund for non-recurring transfers out for capital projects new and/or
Utility Funds
Utility Funds are Enterprise Funds by definition, as they are supported directly by user fees. This grouping includes Waste Water and Water Utilities. These funds are intended to be fully self- supporting and do not depend on or are supported by the General Fund or any other fund. The Fiscal Year 2025-26 Budget includes Utility Fund appropriations of $88.5 million, representing an increase of $6.5 million or 8% over the FY 2024-25 Revised Budget. This increase is primarily due to the following:
• $8.4 million of increased spending in Waste Water Operations to fund increased transfers out to fund capital projects that include sewer main replacements, chemical system upgrade, outfall and force main replacements, recycled water projects, all primarily funded by Wastewater reserves and grants in FY 2025/26 • $2.3 million of decreased spending in the Water Operations due to decreased transfers out for capital projects in FY 2025/26
Internal Service Funds
The Internal Service Funds support the City’s internal operations on a cost reimbursable basis.
This includes Employee Benefits, General Services, Information Technology, Risk Management, Vehicle Replacement and Workers Compensation. The Fiscal Year 2025-26 budget for Internal Service Funds totals $14.6 million, a decrease of $1.8 million or 12% from the Fiscal Year 2024- 25 Revised Budget. This decrease is primarily due to the following:
• $2.6 million of decreased spending in the Vehicle Replacement Fund due to the removal of FY 24/25 one-time capital purchases that are non-recurring in the new year
11 CITYWIDE OVERVIEW
Capital Improvement Program (CIP)
The CIP budget allocates available revenue to rehabilitate, restore, improve, enhance and increase the City’s capital facilities. This fiscal year’s budget is comprised of various funding sources, such as development impact fees, waste water and water rate fees, state and federal grants, gas tax and other City enterprise funds. The Fiscal Year 2025-26 budget totals $76.9m, an increase of $20.5 million over the Fiscal Year 2024-25 Revised Budget. The increase is primarily due to the following projects:
• $11.9 million increased activity in Facility CIP projects. This mainly includes Fire Stations 1 and 2 renovations, Public Safety Building, Museum Seismic Retrofit, Library Facility Enhancement, City Facilities HVAC, Keller Street Garage, Emergency Power Backup systems and Electric Vehicle Chargers.
• $1.1 million decreased activity in Parks CIP projects. This includes a variety of CIP projects such as the Lucchesi Skate Park, Dredging, Lynch Creek Trail/Crosstown connector, Lucchesi Turf, Swim Center Assessment and Community Baseball Field. • $5.4 million increased activity in Public Works CIP projects. This includes a variety of pavement restoration and reconstruction, Petaluma North SMART Station Access, Caufield Bridge, and other bridge and streetlight projects. Also included are surface water projects to mitigate storm water and prevent flooding. • $7.6 million increased activity in Wastewater CIP projects. This includes PIPS force main replacement, pump and chemical system upgrades and sewer main replacements, Tertiary Filtration system expansion, and urban and agricultural recycled water system expansions.
• $4.5 million decrease activity in Water CIP projects expected in upcoming fiscal year. • $1.4m decreased activity in Transit CIP projects
More detailed information can be found related to capital projects in the Capital Improvement Program portion of this document.
REVENUES OF INTEREST
Sonoma County Measure M Parks Funding
On November 6, 2018, Sonoma County voters approved Measure M Parks, a Countywide 1/8 cent sales tax that will support Sonoma County’s regional park system. A portion of the funds are also allocated to the Cities, and Petaluma is estimated to receive approximately $875,700 in fiscal year 2025-26. A FY 25-26 appropriations budget of $924,026 is recommended to be spent on a variety of areas. Funding will be utilized to support an ongoing staffing allocation for park 12 CITYWIDE OVERVIEW
maintenance, a function that is critical in maintaining City parks. Funding is included to address ongoing maintenance, and to provide improvements in parks, restroom facilities, swim center, and playgrounds. Here are the funding recommendations by category:
• Park Maintenance Staff - $262,026 for continuation of the maintenance of parks and additional seasonal help through the seasonal worker program to support weed abatement and turf maintenance.
• Park, Trail, Facility and Swim Center Improvements - $542,000 for Lucchesi Turf Field Replacement, Lucchesi Skate Park and Swim Center Facility Assessment • Enhanced Maintenance Efforts - $120,000 for enhanced maintenance services that include animal grazing, conservation improvements, and an increase in frequency of mulch replacement in support of weed abatement
The Recreation, Music and Parks Commission has reviewed the initial general spending categories and priorities, is continuing work to provide more specificity to the out-years of the plan and to determine how best Measure M can be leveraged in support of Capital Improvement Projects. The spending recommendations within each prioritized category of investment will continue to be reviewed by the Commission and will be made available for community review and input.
Streets Fund
A Streets Fund budget of $10 million is recommended for fiscal year 2025-26. This is an increase of $4m over the revised budget for 2024-25. Estimated revenues are $6.9 million, up slightly by approximately $.4m compared to FY 2024-25. The difference between the two is offset by operating reserve carryover. Over the last few years with the adoption of the increased Highway Users Tax (SB 1), additional resources have been allocated to addressing the cost of deferred street maintenance. Years of inadequate funding have resulted in poor road conditions with a repair cost that cannot be met even after factoring in the new SB1 funding.
While this influx of revenues greatly assists with immediate needs, the ongoing need is much greater than the current revenue structure can solve. Additional funding from the passage of Expenditure Categories
A. Walking Paths, Bike Trails, Park Connections and Access 62,757 B. Playgrounds, Sports Courts, Active Recreation Spaces 405,757 C. Natural Areas and River Enhancements 12,551
D. Enhanced Maintenance Activities 174,205
E. Recreation and Aquatic Facilities; Park Amenities 86,654 F. Creating New Park Spaces or Expanding Recreational Opportunities 162,551 G. Special Events and Community Programming 19,551
Total Expenditures 924,026
13 CITYWIDE OVERVIEW
Measure U, a 1-cent locally controlled district sales tax, will provide resources toward repairing and replacing roads in Petaluma. To front-load the effort and prevent further deterioration of Petaluma’s roads, a $20m bond issue was completed in FY 2022 to provide immediate funding to move projects forward. These funds continue to be budgeted and are programmed into the 2025/26 budget and include increased funding allocated to the pavement maintenance and management program in addition to funding for bridge, intersection, and road design. The City anticipates a future bond issue which will provide another influx of funding towards repairing City roads. Please refer to the Capital Improvement Plan section of this document for more information on pavement projects currently underway and new projects planned in FY 2025/26.
Housing Funds
The Housing funds fiscal year 2025-26 budget includes appropriations of $2.9 million and is approximately $2.0 million less than the revised budget for fiscal year 2024-25. Revenues in FY 25/26 are estimated at $2 million. This results in an estimated ending fund balance at June 30, 2026, of $3.9m which is available for appropriation as the year progresses and as new projects evolve. The City’s needs for affordable housing are great. As funds become available from residual and excess payments from the City’s housing partners in the community, they continue to be utilized to fund the building of desperately needed affordable housing units.
14 CITYWIDE OVERVIEW
Estimated
Beginning Fund
Balance
7/1/2025
FY 26 Budgeted
Revenues
FY 26 Proposed
Budgeted
Expenditures
Ending Fund
Balance
6/30/2026 Explanation
Commercial Linkage Fees
Affordable Housing
Program Services 85,000 Housing Land Trust Administrative Costs to Housing 10,604
Total Commercial Linkage (442,516)$ 538,194$ 95,604$ 74$ Housing-in Lieu Fees
Affordable Housing
Program Services 355,000 Fair Housing and Rental Assistance, PPSC Administrative Costs to Housing Program 1,089,034
Total Housing in Lieu 3,505,784$ 79,309$ 1,444,034$ 2,141,059$ Community Development Block Grant (CDBG)
Program Services 272,240 Federal Funded Program Administrative Costs to Housing 44,760
Total CDBG 969,264$ 311,868$ 317,000$ 964,132$ Permanent Local Housing Authority (PHLA)
Program Services 121,138 Home First
Administrative Costs to Housing 4,575
Total PHLA 185,103$ 121,138$ 125,713$ 180,528$ HOME/Begin Grants
Affordable Housing
Total HOME/Begin 412,184$ 7,621$ -$ 419,805$ Successor Agency Housing
Affordable Housing 881,932
Administrative Costs -
Total Successor Agency Housing 155,709$ 885,521$ 881,932$ 159,298$ Mobile Home Rent Stabilization
Program Services 3,000
Administrative Costs to Housing 25
Total Mobile Home Rent Stabilization (46,055)$ 56,590$ 3,025$ 7,510$ Grand Total All Housing Funds 4,739,473$ 2,000,241$ 2,867,308$ 3,872,406$ Housing Funds Budget
More details can be found in the operating budgets section of this document.
Please refer to the summary schedules, operating budgets and narratives, capital improvement section and the Appendix for further budget details.
15 CITYWIDE OVERVIEW
BUDGET DEVELOPMENT PROCESS
The City of Petaluma’s operating and capital improvement program budgets are created in conjunction with the Mayor, City Council, City departments and public input. The budget development process considers the fiscal and policy goals for the upcoming fiscal year, while following the timeline for budget publication identified within the City of Petaluma’s Charter.
January Early February Mid-February
December – January March
December April
April-May
November
Early May
June Mid-May
Financial analysis of
available funding for
Capital Improvement
Program (CIP)
Planning phase
for next budget
cycle
CIP team develops
and submits Fiscal
Year project list and
plan
Executive Team review
proposed Fiscal Year
CIP budget
Five-Year Financial
Forecast updated, and
priorities and goals set for
upcoming budget cycle
Budget guidelines, instructions and
documents provided to departments;
Council reviews Goals and Priorities
Department budgets developed and
requests submitted
Executive Team reviews requests;
Council finalizes Goals and Priorities
Financial Management staff develops
citywide Fiscal Year Proposed Budget
Fiscal Year Proposed Budget presented to
Council at City Council Budget Workshop
Public Input
Budget amended to
reflect requested changes
Fiscal Year Budget and
Ordinances adopted by City
Council
START
FINISH
H
16 CITYWIDE OVERVIEW
City of Petaluma
Fiscal Year 2025-26
City Background and Fiscal Overview
HISTORY AND GOVERNMENT
The City of Petaluma (“City”) was incorporated in 1858, and is located in southern Sonoma County, California, approximately 40 miles north of San Francisco. Petaluma encompasses 13.8 square miles and includes residential communities, commercial retail areas and several industrial/office complexes. It also boasts 46 parks, 4 community centers and 2 outdoor pools.
The City is a full-service, charter city which means that it provides all city services and operates under special rules outlined in its own formation document called a Charter. The City charter was first approved by voters in 1911 and has been updated periodically over the last century.
The City has operated under a Council-Manager form of government since 1947. Policy making and legislative authority are vested in the City Council, which consists of an elected Mayor and a six-member Council, who are elected to staggered, four-year terms. The City Manager is an appointive position selected on the basis of qualifications and is responsible for implementing the policies, ordinances, and directives of the City Council, overseeing the day-to-day operations of the City, and appointing the directors of the City departments and all City employees.
In addition to providing life and structure protecting response, city staff also build and maintain the roads, pipes, sidewalks, and paths that support mobility to get around and enjoy clean water and a functioning sewer system. This amounts to managing miles of roads, pipes, sidewalks, and paths. The City also oversees all development to make sure Petalumans have safe buildings that protect neighborhood quality and character. Finally, the City also provides recreation opportunities through programing and park management. The City oversees, protects, and maintains many acres of parks and open space. Petaluma is home to approximately 62,000 residents, 22,000 homes and 5,000 businesses.
Below is a listing of services provided and authorized by charter:
petaluma.municipal.codes/Charter:
• Police and Fire protection
• Streets and Infrastructure Maintenance
• Planning and Building Services
• Parks and Recreation Services
• Water Utility and Wastewater Treatment
• Municipal Airport
• Transit Service
• Marina
• General Administrative Support
17 CITYWIDE OVERVIEW
City revenues come from taxes, fees, charges, and other services. Petaluma’s Economic Development staff strive to attract and retain businesses in Petaluma. As part of that strategy staff has implemented a marketing program aimed at attracting jobs, talent, and investment to the City. The Petaluma Star campaign highlights successful companies throughout the City and makes a strong case for Petaluma as a business destination by highlighting Petaluma’s quality of life, cost of doing business and key demographics. Petaluma continues its strong business retention program reaching out to dozens of local companies and connecting them to local financial, real estate and business support services. This effort supports the local economy by providing local jobs.
BUDGETARY POLICY AND CONTROL
The City Council adopts an annual budget, submitted by the City Manager, prior to the beginning of the new fiscal year on July 1. Public hearings are conducted prior to its adoption by the City Council allowing the public to comment on the proposed budget before it’s adopted. The City Council has the legal authority to amend the budget at any time during the fiscal year, which is often necessary as new information about revenues and expenditures becomes available. The City Manager is authorized to adjust the operating budget within funds and between departments. Transfers of operating budgets from appropriated reserve accounts, use of unappropriated fund balances, cancellation of appropriations and all changes in capital improvement project budgets require the approval of the City Council. All appropriations which are not obligated, encumbered, or expended at the end of the fiscal year lapse and become part of the unreserved fund balance which may be appropriated at a later date, either during fiscal year quarterly budget adjustments or in future fiscal years.
The annual budget is prepared on a basis consistent with generally accepted accounting principles and the same basis of accounting as the annual financial report.
The City maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amounts) for the operating budget is within each department.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded, assures sufficient funds are available to cover that portion of the applicable cost. Open encumbrances at year-end are recorded as reservations of fund balance since the commitments will be paid by subsequent years’ budget appropriations.
Encumbrances do not constitute expenditures or liabilities.
Petaluma’s Budget has received the Government Finance Officers Association Distinguished Budget Presentation Award annually for the past decade. Petaluma’s Financial Statements are audited annually by an outside professional auditing firm to verify accounting practices follow 18 CITYWIDE OVERVIEW
state and federal law. The City has received the Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Financial Report every year since 1996.
BUDGET SCHEDULE
Annual Budget Calendar Approximate Date
Budget Kick Off Early November
Labor Allocations and CIP Review Early February
Department Budget Worksheets Late February
Department Meetings Late March
Department Budgets Finalized, Narratives Complete Early April Budget Review- Finance & Manager Mid-April
Draft Budget Delivered to Council 1st Council Meeting in May Budget Workshop Mid-May
City Council Review Late May
Approval Late May/Early June
LONG TERM FINANCIAL PLANNING
The City is required to balance recurring revenues with recurring expenditures every year. This has been an ongoing challenge over the last decade, however with the passage of Measure U, a 1 cent district sales tax passed by Petaluma voters in November of 2020, the process of balancing the budget and preserving services has been made more achievable. While Petaluma has recently shown increased sales and property tax related revenues, these sources are finite. Costs continue to show a growth rate slightly larger than revenues, creating budget decisions that must be addressed by reducing costs or making policy decisions that affect the long-term sustainability of City programs.
The City continues to focus on long-term financial and operating needs. The Finance Department updates the long term forecast twice a year: when the Proposed Budget is developed and for the mid-year review in February. Revisions track changing conditions and assumptions. Each forecast is adjusted to account for one-time and ongoing changes in revenues, expenditures, and fund balances and for known economic circumstances. Forecasts are used in budgeting and decision- making associated with service provision.
Every two years, the City Council sets goals for the City that help staff prioritize work and estimate what costs would be necessary to meet those goals. Most recently, in February 2025, the City Council held a workshop to discuss and prioritize the status of goals with the community.
Long-term goals can be found on the City’s website at cityofpetaluma.org/goals. 19 CITYWIDE OVERVIEW
ACCOUNTING SYSTEM AND INTERNAL CONTROL
The City's accounting system is organized and operated on a fund basis. Each fund is a distinct self-balancing accounting entity. The City's accounting records for general governmental operations are maintained on a modified accrual basis, whereby revenues are recognized when measurable and available and expenditures are recognized when materials and services are received. Accounting records for the enterprise and internal services funds are recorded on an accrual basis, whereby revenues are recognized when earned and expenses are recognized when incurred.
In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the benefits likely to be derived and (b) the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework.
Internal controls are independently reviewed to ensure that the City’s operating policies and procedures are adhered to, and that controls are adequate to ensure accurate and reliable financial reporting and to safeguard the City’s assets. The City’s auditors have found the City's internal accounting controls safeguard assets and provide reasonable assurance of proper recording of financial transactions.
INVESTMENT POLICY
It is the policy of the City to manage public funds in a manner consistent with the following objectives: comply with all laws of the State of California pertaining to the investment of public funds, safeguard the principal of funds under its control, meet the daily cash flow requirements and achieve a reasonable rate of return with the maximum security. Investments of City funds must comply with its Investment Policy which includes and excludes certain investment types.
This investment policy applies to all financial assets of the City. This policy also applies to funds of the Petaluma Community Development Commission (PCDC), City acting in its capacity as Successor Agency, Petaluma Public Financing Authority, City of Petaluma Public Financing Corporation, and any other fund under the control of the City Treasurer.
Investments shall be made with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City.
The City Treasurer and authorized individuals acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 20 CITYWIDE OVERVIEW
The primary objective, in priority order, of the City’s investment activities shall be:
1. Safety: Safety of principal is the foremost objective of the investment program.
Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
2. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
3. Return on Investments: The City’s investments shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.
Glossary of Terms
Balanced Budget – The City annually adopts a balanced budget on a fiscal year basis. A balanced budget means there are sufficient revenues and unassigned fund balances appropriated to fund all City operating, capital improvement, debt service and interfund transfers for the fiscal year beginning July 1 and ending June 30.
Fund Balance – Uncommitted resources are available for spending at the government’s discretion (unassigned fund balance). The focus of the City governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financial requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
Assigned Fund Balance – The remainder of fund balance is “reserved” to indicate that it is not available for new spending because it has already been committed: 1) for liquidated contracts and purchase orders of the prior period; 2) to be set aside as a cash basis reserve; 3) to pay debt service; or, 4) for a variety of other restricted purposes.
Emergency reserves are set aside in operating funds to provide resources in the event of a natural disaster, economic downturn or unplanned operating expenses. Committed funds are those constrained by limitations that the government imposes on itself at the highest level of decision-making authority and represent funds committed for future planned expenses. Capital project reserves are funds reserved either for active long term capital projects shown in the 5-year CIP plan and/or for emergency use should a major failure of capital equipment occur.
Fund Structure
The City collects and records revenue and expenditures within Governmental Activities and Business-Type Activities. Below are the definitions of these types of activities:
Governmental Activities – Most of the City’s basic services are reported in this category, including General Government, Police, Fire, Public Works, Parks, Recreation and Planning Services. These activities are generally financed by property and sales taxes, user fees, interest income, franchise fees, and state and federal shared revenues and grants. Governmental Activities are accounted for in Governmental Funds.
21 CITYWIDE OVERVIEW
Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. The Governmental Funds include the General Fund, Special Revenue, Debt Service and Capital Projects funds. All funding sources are kept separate for both reporting and use of the money. These funds are reported using an accounting method called modified-accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The Governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs.
Business-Type Activities – The City charges a fee to customers to cover all or most of the cost of certain services it provides. The City’s Building, Water and Wastewater system, Transit System, Municipal Airport, and Marina are business type activities and charge fees to cover the cost of providing the service. Business-Type Activities are accounted for in Proprietary Funds.
Proprietary Funds – When the City charges customers for the services it provides, whether to outside customers or to other units of the City, these services are generally reported in Proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Assets and the Statement of Revenues, Expenses and Charges in Fund Net Assets. In fact, the City’s Enterprise Funds are the same as the Business-Type activities reported in the Government-wide statements, but provide more detail and additional information, such as cash flows, for Proprietary funds. The City uses Internal Service Funds (the other component of Proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities—such as the City’s Self-Insurance and Equipment Management Funds.
Fiduciary Funds – The City is the trustee, or fiduciary, for certain funds held on behalf of various third parties. The City’s fiduciary activities are reported in separate Statements of Fiduciary Net Assets. The City excludes these activities from its other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.
Capital Expense or Outlay (also referred to as Capital Equipment)—Expenditures that result in the acquisition of assets with an estimated useful life of two or more years and a unit cost of $5,000 or more for equipment, furniture, vehicles, and/or software; and a unit cost of $50,000 or more for infrastructure, land/easements and/or land improvements.
Other Information
Independent Audit – The City Charter requires an annual audit by a professional independent audit firm. The City encourages auditor rotation and competitive bidding on a five-year cycle. The accounting firm of Badawi and Associates was selected by the City Council to perform the annual audit. In addition to meeting the requirements set forth in the state statutes, the audit also is designed to meet the requirements of the Federal Single Audit Act of 1984 and related regulations, cost principles and audit requirements for Federal Awards. The auditor’s report 22 CITYWIDE OVERVIEW
covers the basic financial statements and the notes to the financial statements.
Awards – The City was awarded a Certificate of Achievement for Excellence in Financial Reporting issued by the Government Finance Officers Association (GFOA) for the Comprehensive Financial Report fiscal year ended June 30, 2024, marking the 27th year Petaluma has received the certificate. The City was also awarded the Distinguished Budget Presentation Award for FY 2024/25.
23 CITYWIDE OVERVIEW
Acronyms
Acronyms
ADA American with Disabilities Act
AIP Airport Improvement Program
AMI Advanced Metering Infrastructure
ARPA American Rescue Plan Act
AT Active Transportation
AVA Abandoned Vehicle Abatement
BAAQMD Bay Area Air Quality Management District
CAD Computer Aided Dispatch
CAHOOTS Crisis Assistance Helping Out on the Streets
CALEA Commission on Accreditation of Law Enforcement Agencies CalOES California Office of Emergency Services
CDBG Community Development Block Grant
CEC Grant California Energy Comm Grant
CEQA California Environmental Quality Act
CIP Capital Improvement Plan
CIRT Community Impact Response Team
CNG Compressed Natural Gas
CPSM Center for Public Safety Management
CRRSAA Coronavirus Response and Relief Supplemental Appropriations Act CUPA Certified Unified Program Agency
DEI Diversity Equity and Inclusion
DOJ Department of Justice
DWR Department of Water Resources
ECWRF Ellis Creek Water Recycling Facility
EDMS Electronic Document Management System
EMS Emergency Medical Service
EOC Emergency Operation Center
EPA US Environmental Protection Agency
ERP Enterprise Resource Planning
ETC Eastside Transit Center
EV Electric Vehicle
FAA Federal Aviation Administration
FOD Foreign Object Debris
FPPC Fair political Practices Commission
FPPC Fair Political Practices Commission
FTA Federal Transit Administration
GPAC General Plan Advisory Committee
HBP Caltrans Highway Bridge Program
HCD Department of Housing and Community Development
HLT Housing Land Trust
HVAC Heating, Ventilation, and Air Conditioning
I&I infiltration & outflows
24 CITYWIDE OVERVIEW
Acronyms
IZO Implementing Zoning Ordinance
LCT Lynch Creek Trail
MGD million gallons per day
NBWRA North Bay Water Reuse Authority
NEPA National Environmental Policy Act
OBAG One Bay Area Grant
PBAC Pedestrian and Bicycle Advisory Committee
PCA Petaluma Community Access TV
PCI Pavement Condition Index
PEP Petaluma Ecumenical Properties
PIPS Primary Influent Pump Station
PPSC Petaluma People Services Center
PSAP Public Safety Answering Point
PSPS Public Safety power shutoff
PTASP Petaluma Transit Public Transit Agency Safety Plan PWA Petaluma Wetlands Alliance
RRFB Rectangular Rapid Flashing Beacon
RFP Request for proposal
RIPA Racial and Identity Profiling Act
RMRA Road Maintenance and Rehab Acct
RMS Records Management System
SAF Sustainable Aviation Fuels
SAFE Specialized Assistance for everyone
SB2 Senate Bill 2 Planning Grants program
SCADA Supervisory Control and Data Acquisition
SCTA Sonoma County Transit Act
SCWA Sonoma County Water Agency
SLESF Supplemental Law Enforcement Services Fund
SMART Sonoma Marin Area Rail Transit
SPAR Site Plan and Architectural Review
TDA Transportations Development Act
TFCA Transportation Fund for Clean Air
TIF Traffic Impact Feed
TMDL Total maximum daily load
TPO Thermoplastic Polyolefin
UMDR Grant Urban and Multi-benefit Drought Relief Grant Program USACE US Army Corps of Engineers
VMT Vehicle miles traveled
YIMBY law Yes in my Backyard Law
25 CITYWIDE OVERVIEW
26 SUMMARY SCHEDULES
2025-26 ALL FUNDS BUDGET SUMMARY
Budgeted appropriations for fiscal year 2025-26 total $348,117,599. This amount represents all funds of the City and their major components, operations, capital improvements, debt service, and transfers.
The City of Petaluma’s budget is grouped into various fund categories. The categories include the following fund types and appropriations:
General Fund appropriations are $80,358,744. The General Fund is used to account for resources traditionally associated with government. These include City Administration, Finance, Public Safety, Building Services, Public Works, Parks and Recreation.
Measure U Sales Tax appropriations are $15,708,000. The Measure U Sales Tax addresses the City’s most immediate needs including investment themes of deficit elimination, workforce stabilization, and infrastructure. Additionally, funds are used for the community’s priority initiatives.
Measure H Sales Tax appropriations are $3,851,128. Measure H Sales tax is a county wide sales tax dedicated to support County fire agencies staffing and other critical needs.
Special Revenue, Trust and Debt Service Funds appropriations are $45,055,148. This includes Street Maintenance, Housing, Landscape Assessment Districts, Developer Impact Fees, Grants, and Transient Occupancy funds. These funds are used for various projects and programs throughout the City which include the acquisition, development, and enhancement of neighborhood and community parks as well as housing assistance to people with low and moderate incomes.
Enterprise Funds appropriations are $18,936,190. The Enterprise Funds account for the daily operation and maintenance of the Petaluma Airport, Development and Building Services, Petaluma Marina and Petaluma Transit Services.
Utility Funds appropriations are $88,461,390. The Utilities provide for the comprehensive and integrated management of Petaluma’s water resources, storm water and the collection and treatment of wastewater.
Internal Service Funds appropriations are $14,654,222. Funds include Employee Benefits, General Services, Information Technology, Risk Management, Vehicle and Equipment Replacement, and Workers’ Compensation. All Internal Service Fund costs are charged back to user departments in the City.
Capital Project Funds appropriations are $76,950,890. These funds account for the collection of resources and the related expenditures on acquisition and construction of major capital improvement projects in the City. These funds include Airport, Facilities, Parks, Public Works, Surface Water, Transit, Water, Recycled Water and Wastewater.
Successor Agency Funds appropriations are $4,141,887. These funds provide for debt service, program expenditures, and intergovernmental charges through the transfer of tax increment revenue received.
27 SUMMARY SCHEDULES
The charts below show where the funds come from and where they are used.
WHERE THE MONEY COMES FROM…
2025-2026
ESTIMATED REVENUES - $306,410,346
WHERE THE MONEY GOES…
2025-2026
ESTIMATED APPROPRIATIONS - $348,117,599
Note: Any difference between appropriations and sources is offset from available fund balance (reserves). 28 SUMMARY SCHEDULES
Fund Description Beg. Fund Bal.
7/1/2024
Estimated
Revenues Transfers In Estimated
Expenditures Transfers Out
YE
Adjustments/Reserv
e
Est. Fund Bal.
6/30/2025
GENERAL FUND OPERATING 34,358$ 61,564,143$ 16,433,292$ (77,469,928)$ (1,407,507)$ 845,642$ (0)$ Measure U Sales and Use Tax 68,299$ 15,615,000$ (15,683,299)$ (0) Measure H Fire Tax -$ 3,225,000$ (1,932,000)$ 142,500$ 1,435,500 General Fund Designated Reserves 11,422,027 - - - - - 11,422,027 TOTAL GENERAL FUND 11,524,684$ 80,404,143$ 16,433,292$ (77,469,928)$ (19,022,806)$ 988,142$ 12,857,527$ Community Development Block Grant 1,006,426 599,786 (327,948) (309,000) 969,264 Home/Begin Grants 493,107 9,077 (90,000) 412,184 Permanent Local Housing Authority (PLHA) 185,103 575,000 (1,270,000) 695,000 185,103 Housing Successor Agency 99,346 54,252 481,845 (479,734) 155,709 Mobile Home Rent Program (64,347) 25,710 (3,000) (4,418) (46,055) Commercial Linkage Fees (311,130) 1,225,502 (325,033) (198,830) (833,025) (442,516) Housing In-Lieu Fees 5,071,319 384,920 (1,711,858) (238,597) 3,505,784 Parkland Acquisition Impact Fees-08 2,868,872 193,931 (2,765) (66,378) 2,993,660 Parkland Development Impact Fees-08 670,031 497,331 (9,200) (1,061,000) 226,175 323,337 Open Space Acquisition Impact Fees - 08 700,324 52,093 (762) (15,733) 735,922 City Facilities Development Impact Fee 8,408,483 629,776 (9,378) (1,937,000) (221,748) 6,870,134 Storm Drainage Impact Fees 2,495,497 54,934 (421,000) (50,611) 2,078,820 Storm Drainage Impact Fees - 08 665,700 67,308 (1,080) 731,928 Traffic Mitigation Impact Fees 1,072,098 40,624 (1,112,722) - Traffic Mitigation Impact Fees-08 33,122,333 4,893,671 (84,163) (377,278) (2,851,437) 34,703,126 Public Art Fees (25,096) 460,631 (219,729) (225,740) (9,934) 3% Admin Impact Fees 291,149 145,740 (169,747) (31,400) - 235,742 General Government Grants - - Community Development Grants 742,671 1,310,000 (990,000) 3,731,238 4,793,909 Fire Department Grants - - Parks and Rec Grants (200,064) 1,414,000 (1,200,000) (430,000) (416,064) Police Grants (202,958) 1,971,698 30,000 (1,998,870) 194,670 (5,460) Public Works Grants 53,008 308,000 (149,487) (308,000) (96,479) Gas Tax 2,226 3,188,554 (268) (3,185,362) 5,150 Landscape Assessment Districts 650,981 519,841 (505,901) 664,921 Abandoned Vehicle Abatement 217,599 104,413 (171,797) 150,215 Asset Seizures 178,439 706 (22) 179,123 Street Maintenance Gas Tax 2,760,781 2,428,829 4,139,362 (5,907,765) (153,570) 3,267,637 Transient Occupancy Tax (297,610) 4,043,677 (700,738) (3,594,529) 659,633 110,433 Tourism Improvement District 332,893 150,856 (184,700) 299,049 Haz Mat Fines 60,022 1,196 61,218 Supplemental Law Enforcement Services Fund (SLESF) 490,541 157,213 (10) (160,000) 487,744 Donations 249,763 (200) 249,563 Prince Park Trust (3,322) 2,836 486 0 Virginia Craig Trust 532,025 - (532,000) 25 Measure M Parks 46,161 952,783 (377,396) (663,283) 95,000 53,265 Fairgrounds (217,921) 570,358 - (570,502) - 218,625 560 TOTAL SPECIAL REVENUE FUNDS 62,144,454$ 27,035,246$ 4,651,207$ (17,462,053)$ (14,717,989)$ 1,556,156$ 63,207,020$
ALL FUNDS -- FUND SUMMARY
FUND SUMMARY
FISCAL YEAR 2024-25 Estimate
29 SUMMARY SCHEDULES
Fund Description Beg. Fund Bal.
7/1/2024
Estimated
Revenues Transfers In Estimated
Expenditures Transfers Out
YE
Adjustments/Reserv
e
Est. Fund Bal.
6/30/2025
PRIVATE & PERMANENT TRUST FUNDS
Wickersham Park Trust 26,795 532 27,327 Child Care Trust 105,489 2,097 107,586 Thomas Lee Charity Trust 25,065 498 - - - - 25,563 PRIVATE & PERMANENT TRUST FUNDS 157,349$ 3,127$ -$ -$ -$ -$ 160,476$
DEBT FUNDS
General Government Debt 6,058,745 611,615 1,427,052 (913,719) - - 7,183,693 TOTAL DEBT FUNDS 6,058,745$ 611,615$ 1,427,052$ (913,719)$ -$ -$ 7,183,693$
ENTERPRISE FUNDS
Airport Operations 1,000,904 2,384,533 (2,509,866) (341,300) 534,271 Development Services 820,787 2,500,544 (3,259,254) (32,800) 300,000 329,277 Marina (1,545,610) 253,500 (363,752) (74,400) (1,730,262) Transit 994,505 9,692,585 180,000 (9,738,254) (1,622,200) 1,054,200 560,836 TOTAL ENTERPRISE FUNDS 1,270,586$ 14,831,162$ 180,000$ (15,871,126)$ (2,070,700)$ 1,354,200$ (305,878)$
UTILITIES
Waste Water Utility 47,460,999 34,530,776 93,580 (28,824,802) (20,393,800) 32,866,753 Waste Water Rate Stabilization 3,990,850 79,482 4,070,332 Water Utility 19,723,567 23,669,109 (24,223,639) (7,160,000) 12,009,037 Storm Utility 1,480,822
472,664 528,473 (1,439,153) - 344,000 1,386,806 TOTAL UTILITIES 72,656,238$ 58,752,031$ 622,053$ (54,487,594)$ (27,553,800)$ 344,000$ 50,332,928$
INTERNAL SERVICE FUNDS
Employee Benefits 3,240,286 1,677,182 (1,187,160) 3,730,308 General Services 436,186 10,815 (158,984) - 288,017 Information Technology (1,504,337) 5,242,472 300,000 (4,455,235) (417,100) Risk Management (Liability) 3,510,385 2,784,774 (3,687,515) 2,607,644 Vehicle and Equipment Replacement 1,194,828 27,201 1,925,000 (3,248,748) 200,000 98,281 Workers' Compensation 10,599,798 4,525,414 - (3,760,805) - - 11,364,407 TOTAL INTERNAL SERVICE FUNDS 17,477,146$ 14,267,858$ 2,225,000$ (16,498,447)$ -$ 200,000$ 17,671,557$
CAPITAL PROJECT FUNDS
Facilities CIP 4,475,168 4,058,100 (6,951,578) 1,581,690 Community Development CIP - - Fire CIP - -
Parks and Recreation CIP 3,208,829 3,399,767 (6,835,567) (226,971) Police CIP -
Public Works/Surface Water CIP 5,920,448 5,564,000 3,018,824 (10,826,973) 3,676,299 Airport CIP 99,133 206,000 (180,600) 124,533 Marina CIP -
Transit CIP 14,000 1,573,000 (1,572,750) 14,250 Waste Water/Recycled Water CIP 46,313 3,862,000 20,306,000 (20,736,350) - 3,477,963 Water CIP (2,763,024)
6,787,000 5,265,000 (9,381,000) - - (92,024) TOTAL CAPITAL PROJECT FUNDS 11,000,866$ 16,213,000$ 37,826,691$ (56,484,818)$ -$ -$ 8,555,739$
SUCCESSOR AGENCY FUNDS
Successor Agency Debt - 4,023,125 (4,023,125) - Successor Agency Admin (127,361) 252,449 - (151,620) - 26,532 0 TOTAL SUCCESSOR AGENCY FUNDS (127,361)$ 4,275,574$ -$ (4,174,745)$ -$ 26,532$ 0$ TOTAL ALL FUNDS 182,162,708$ 216,393,756$ 63,365,295$ (243,362,430)$ (63,365,295)$ 4,469,030$ 159,663,063$
FUND SUMMARY
FISCAL YEAR 2024-25 Estimate
30 SUMMARY SCHEDULES
Fund Description Est. Fund Bal.
7/01/2025
Budgeted
Revenues
Budgeted Transfers
In
Budgeted
Expenditures
Budgeted
Transfers Out
YE
Adjustments/Re
serve
Proj. Fund Bal.
6/30/2026
Emergency and
Committed
Reserves/Fund
Balance
5-Year Capital
Project Plan
Reserves
Unreserved Fund
Bal 6/30/26
GENERAL FUND OPERATING (0)$ 62,362,164$ 17,376,329$ (78,607,626)$ (1,381,467)$ 330,000$ 79,400$ 79,400$ Measure U Sales and Use Tax (0) 15,708,000 (15,708,000) (0) (0) Measure H Fire Tax 1,435,500 4,486,560 (1,246,128) (2,605,000) 2,070,932 2,070,932 General Fund Designated Reserves 11,422,027 - - - (369,651) - 11,052,377 11,052,377 - - TOTAL GENERAL FUND 12,857,527$ 82,556,724$ 17,376,329$ (79,853,754)$ (20,064,118)$ 330,000$ 13,202,709$ 11,052,377$ -$ 2,150,332$ Community Development Block Grant 969,264 311,868 (307,640) (9,360) 964,132 964,132 Home/Begin Grants 412,184 7,621 - 419,805 419,805 Permanent Local Housing Authority (PLHA) 185,103 121,138 (121,138) (4,575) 180,528 180,528 Housing Successor Agency 155,709 3,589 881,932 (857,107) (24,825) 159,298 159,298 Mobile Home Rent Program (46,055) 56,590 (3,000) (25) 7,510 7,510 Commercial Linkage Fees (442,516) 538,194 (93,554) (2,050) 74 74 Housing In-Lieu Fees 3,505,784 79,309 (565,667) (878,367) 2,141,059 2,141,059 Parkland Acquisition Impact Fees-08 2,993,660 50,028 (21,150) 3,022,538 3,022,538 Parkland Development Impact Fees-08 323,337 41,865 (365,000) 202 202 - Open Space Acquisition Impact Fees - 08 735,922 12,545 (5,199) 743,268 743,268 City Facilities Development Impact Fee 6,870,134 145,989 (48,537) (5,904,000) 1,063,586 1,063,586 - Storm Drainage Impact Fees 2,078,820 46,115 (1,896,000) 228,935 228,935 - Storm Drainage Impact Fees - 08 731,928 11,172 (5,171) (166,000) 571,929 571,929 - Traffic Mitigation Impact Fees - - - - Traffic Mitigation Impact Fees-08 34,703,126 663,981 (245,176) (4,170,000) 30,951,931 30,951,931 - Public Art Fees (9,934) 33,261 (11,014) 12,313 12,313 3% Admin Impact Fees 235,742 355,855 (228,947) (31,400) 331,250 331,250 - General Government Grants - 758,000 (758,000) - - Community Development Grants 4,793,909 (2,136,584) 2,657,325 2,657,325 - Fire Department Grants - - - Parks and Rec Grants (416,064) (416,064) (416,064) - Police Grants (5,460) 1,378,140 (1,365,770) 6,910 6,910 - Public Works Grants (96,479) 2,752,000 (2,752,000) (96,479) (96,479) - Gas Tax 5,150 3,268,521 (211) (3,273,370) 90 90 - Landscape Assessment Districts 664,921 668,526 (702,127) (31,250) 600,070 600,070 - Abandoned Vehicle Abatement 150,215 68,707 (175,675) (3,730) 39,517 39,517 Asset Seizures 179,123 599 (84,032) (65,030) 30,660 30,660 Street Maintenance Gas Tax 3,267,637 2,718,055 4,260,370 (6,075,195) (3,969,570) 201,297 201,297 - Transient Occupancy Tax 110,433 3,680,885 (347,781) (3,428,694) 14,843 14,843 Tourism Improvement District 299,049 141,109 (4,530) (300,380) 135,248 135,248 Haz Mat Fines 61,218 1,005 62,223 62,223 SLESF 487,744 236,059 (15) (200,610) 523,178 523,178 Donations 249,563 (694) (280) 248,589 248,589 Prince Park Trust 0 2,371 - 2,371 2,371 Virginia Craig Trust 25 - 25 25 Measure M Parks 53,265 877,468 (332,833) (591,193) - 6,707 6,707 Fairgrounds 560 1,424,000 - (1,575,413) (2,060) - (152,913) - - (152,913) 63,207,020$ 20,454,565$ 5,142,302$ (15,314,160)$ (28,827,769)$ -$ 44,661,958$ 3,284,400$ 32,816,583$ 8,560,975$
FUND SUMMARY
FISCAL YEAR 2025-2026
ALL FUNDS -- FUND SUMMARY
Allocation of Fund Balances
TOTAL SPECIAL REVENUE FUNDS
31 SUMMARY SCHEDULES
Fund Description Est. Fund Bal.
7/01/2025 Budgeted Revenues Budgeted Transfers In Budgeted Expenditures
Budgeted
Transfers Out
YE
Adjustments/Re
serve
Proj. Fund Bal.
6/30/2026
Emergency and
Committed
Reserves/Fund
Balance
Capital Project
Reserves
Available Fund
Bal 6/30/26
PRIVATE & PERMANENT TRUST FUNDS
Wickersham Park Trust 27,327 446 27,773 27,773 Child Care Trust 107,586 1,760 109,346 109,346 Thomas Lee Charity Trust 25,563 419 - - - - 25,982 - - 25,982 PRIVATE & PERMANENT TRUST FUNDS 160,476$ 2,625$ -$ -$ -$ -$ 163,101$ -$ -$ 163,101$
DEBT FUNDS
General Government Debt 7,183,693 - 366,671 (913,219) - - 6,637,145 6,637,145 - - 7,183,693$ -$ 366,671$ (913,219)$ -$ -$ 6,637,145$ 6,637,145$ -$ -$
ENTERPRISE FUNDS
Airport Operations 534,271 6,676,395 (2,276,376) (2,882,300) 2,051,990 469,094 1,582,896 - Development Services 329,277 2,675,992 (3,013,860) (32,800) 75,000 33,609 33,609 - Marina (1,730,262) 221,600 (370,453) (74,400) (1,953,515) (1,953,515) Transit 560,836 9,866,153 180,000 (10,149,801) (136,200) - 320,988 320,988 - - (305,878)$ 19,440,140$ 180,000$ (15,810,490)$ (3,125,700)$ 75,000$ 453,072$ 823,691$ 1,582,896$ (1,953,515)$
UTILITIES
Waste Water Utility 32,866,753 35,970,354 93,580 (30,137,826) (27,494,800) 11,298,061 11,298,061 - - Waste Water Rate Stabilization 4,070,332 66,738 4,137,070 4,137,070 - Water Utility 12,009,037 29,422,131 (23,902,658) (5,149,000) 12,379,510 12,379,510 - Storm Utility 1,386,806
336,853 528,473 (1,342,201) (434,905) - 475,026 304,324 170,702 - 50,332,928$ 65,796,076$ 622,053$ (55,382,685)$ (33,078,705)$ -$ 28,289,667$ 28,118,965$ 170,702$ -$
INTERNAL SERVICE FUNDS
Employee Benefits 3,730,308 1,778,934 (1,131,703) (11,020) 4,366,519 4,366,519 - General Services 288,017 9,077 (160,768) (6,565) 129,761 129,761 - Information Technology (417,100) 5,277,357 (4,694,841) (53,540) 111,876 111,876 - Risk Management (Liability) 2,607,644 2,270,672 (4,252,333) (26,215) 599,768 599,768 - Vehicle and Equipment Replacement 98,281 22,930 500,000 (575,100) (15,710) 30,401 30,401 - Workers' Compensation 11,364,407 4,637,232 - (3,711,642) (14,785) - 12,275,212 12,275,212 - - 17,671,557$ 13,996,202$ 500,000$ (14,526,387)$ (127,835)$ -$ 17,513,537$ 17,513,537$ -$ -$
CAPITAL PROJECT FUNDS
Facilities CIP 1,581,690 8,465,000 12,343,181 (18,841,371) 3,548,500 3,548,500 - Community Development CIP - - - - Fire CIP - - - - Parks and Recreation CIP (226,971) 4,185,767 (5,729,783) (1,770,987) (1,770,987) - Police CIP - - - - Public Works/Surface Water CIP 3,676,299 3,388,000 10,955,824 (16,209,259) 1,810,864 1,810,864 - Airport CIP 124,533 2,747,000 (2,807,194) 64,339 64,339 - Marina CIP - - - - Transit CIP 14,250 99,000 (129,063) (15,813) (15,813) - Waste Water/Recycled Water CIP 3,477,963 2,297,000 26,531,000 (28,389,802) 3,916,161 3,916,161 - Water CIP (92,024)
648,000 4,175,000 (4,844,418) - - (113,442) - (113,442) - TOTAL CAPITAL PROJECT FUNDS 8,555,739$ 14,798,000$ 61,036,772$ (76,950,890)$ -$ -$ 7,439,621$ -$ 7,439,621$ -$ Successor Agency Debt - 3,998,679 (3,998,679) - - - Successor Agency Admin 0 143,208 - (143,208) - - 0 - - 0 TOTAL SUCCESSOR AGENCY FUNDS 0$ 4,141,887$ -$ (4,141,887)$ -$ -$ 0$ -$ -$ 0$ TOTAL ALL FUNDS 159,663,063$ 221,186,219$ 85,224,127$ (262,893,472)$ (85,224,127)$ 405,000$ 118,360,811$ 67,430,115$ 42,009,802$ 8,920,893$ FISCAL YEAR 2025-2026
FUND SUMMARY
Allocation of Fund Balances
TOTAL INTERNAL SERVICE FUNDS
TOTAL DEBT FUNDS
TOTAL ENTERPRISE FUNDS
TOTAL UTILITIES
32 SUMMARY SCHEDULES
Special Revenue
General Fund Measure U & Trust Funds Enterprise Internal Capital Successor All Funds Revenue incl. Housing Funds Funds Utilities Service Funds Project Funds Agency Funds Taxes Revenue 35,525,500 15,708,000 4,486,560 6,117,025 170,000 312,500 4,141,887 66,461,472 Permits, Fees and Fines 2,007,200 1,365,109 2,628,090 4,000 6,004,399 Use of Property Revenue 972,300 1,919,147 1,555,098 1,438,857 308,008 6,193,410 Intergovernmental 9,920,344 9,974,062 14,195,252 - 2,945,000 37,034,658 Charges for Sales - -
Charges for Services/Sales 13,718,820 1,063,847 43,500 13,585,079 28,411,246 Utility Revenue 40,000 63,104,100 63,144,100 Sales Revenue 14,300 805,600 40,000 859,900 Other Revenue 203,700 - - 18,000 2,600 896,619 103,115 11,853,000 - 13,077,034 Total Revenues 62,362,164$ 15,708,000$ 4,486,560$ 20,457,190$ 19,440,140$ 65,796,076$ 13,996,202$ 14,798,000$ 4,141,887$ 221,186,219$ Other Sources:
Transfers In 17,376,329 - - 5,508,973 180,000 622,053 500,000 61,036,772 - 85,224,127 Total Revenue and Other Sources 79,738,493$ 15,708,000$ 4,486,560$ 25,966,163$ 19,620,140$ 66,418,129$ 14,496,202$ 75,834,772$ 4,141,887$ 306,410,346$ Expenditures and Expenses
Salaries and Benefits 64,187,476$ 350,128$ 4,717,758$ 3,472,490$ 15,284,785$ 3,093,924$ 4,852,424$ 88,302$ 96,047,287 Supplies 1,468,715 529,261 1,061,140 13,937,000 149,000 185,315 200 17,330,631 Professional Services,Maint, Repair 6,630,273 15,000 7,709,175 3,632,121 7,663,000 1,064,363 70,557,036 4,098 97,275,066 Intragovernmental Charges 3,877,654 1,561,767 1,422,248 5,107,892 487,167 728,434 40,608 13,225,770 Utilities 1,453,268 487,507 249,615 2,809,950 5,000,340 Debt Service-Principal and Interest 913,219 517,924 9,109,352 534,926 3,998,679 15,074,100 Advertising,Insurance, Rent, Training 940,190 308,692 413,117 892,406 8,622,007 627,681 10,000 11,814,093 Capital Expenditures 50,050
- 881,000 - 5,041,835 578,300 575,000 - - 7,126,185 Total Expenditures and Expenses 78,607,626$ -$ 1,246,128$ 16,227,379$ 15,810,490$ 55,382,685$ 14,526,387$ 76,950,890$ 4,141,887$ 262,893,472$ Other Uses:
Transfers Out 1,751,118 15,708,000 2,605,000 28,827,769 3,125,700 33,078,705 127,835 - - 85,224,127 Total Expenditures, Expenses and
Other Uses 80,358,744
$ 15,708,000$ 3,851,128$ 45,055,148$ 18,936,190$ 88,461,390$ 14,654,222$ 76,950,890$ 4,141,887$ 348,117,599$ Sources and Uses of Funds
Fiscal Year 2025/2026
Measure H
County wide
Sales Tax
33 SUMMARY SCHEDULES
34 SUMMARY SCHEDULES
2026 Budget
General Fund by Function
Func tion 2024 Ac tual 2025 Revised 2026 Budget
Funded
Position
Alloc ation
Revenues
General Government 64,565,636 64,638,272 67,370,493 Planning 1,525,984 1,522,900 1,383,300 Fire 8,334,582 8,979,863 7,898,900
Recreation 962,886 1,282,500 1,450,800 Police 1,204,741 1,106,300 1,085,800
Public Works 628,759 467,600 549,200 Total General Fund Revenues 77,222,588 77,997,435 79,738,493 Appropriations
General Government 13,946,289 12,211,543 12,326,459 36.30 Community Development 1,810,738 1,796,605 2,056,623 3.47 Fire 24,408,005 25,707,701 25,289,659 67.30
Parks and Recreation 7,033,116 7,087,314 6,830,920 24.20 Police 29,069,722 29,465,949 30,814,610 101.60 Public Works 2,848,145 2,608,323 3,040,473 9.30
Total General Fund Appropriations 79,116,015 78,877,435 80,358,744 242.17 Less Intragovernmental Offset (4,364,094) (4,948,510) (5,455,319) General Fund Net Cost 74,751,921 73,928,925 74,903,425 35 SUMMARY SCHEDULES
2026 Budget
General Fund by Division
Division 2024 Ac tual 2025 Revised 2026 Budget
Funded
Position
Alloc ation
Revenues
General Fund Cost Center 64,564,536 64,638,272 67,369,593 Animal Services Admin / Operations 920 - 900 Finance Admin 180 - - Planning Admin 467,527 531,100 488,300 Planning Cost Recovery 1,058,457 991,800 895,000 Fire Admin 1,471,782 1,903,708 834,800 Ambulance 6,865,478 7,076,155 7,064,100 Recreation Admin 22,749 13,600 50,000 Recreation Community Center 311,740 300,200 333,800 Recreation Youth/teens Programs 163,250 247,000 272,100 Recreation Contract Classes 266,153 208,600 229,800 Recreation Sports Programs 36,510 47,900 52,700 Recreation Sports Field Lights 155,840 143,900 158,500 Recreation Aquatic Programs - 315,000 347,000 Recreation Senior Programs 5,644 6,300 6,900 Recreation Special Events 1,000 - - Police Admin 1,204,741 1,106,300 1,085,800 Pub Works Admin 542,043 467,500 534,100 Parks Maintenance 86,614 - - Turning Basin/D St Bridge 102 100 15,100 Total General Fund Revenues 77,222,588 77,997,435 79,738,493 Appropriations
General Fund Cost Center 3,881,251 1,407,507 1,751,118 City Council Admin/operations 106,317 88,415 70,066 City Attorney Admin/operations 1,295,271 1,566,629 1,606,118 5.00 City Clerk Admin/operations 560,777 612,582 637,000 3.00 City Clerk Elections 96,047 204,962 218,551 City Manager Admin/operations 2,119,115 2,044,887 2,011,301 6.00 Economic Development 1,113,054 791,505 715,222 2.00 Finance Admin/operations 1,188,282 1,154,736 1,183,129 16.00 Finance Accounting Service 1,162,980 1,179,968 1,366,539 Finance Commercial Service 705,499 880,011 792,538 Human Resources Admin/operations 1,114,949 1,279,341 985,277 4.30 Non Departmental 602,747 1,001,000 989,600 Planning Admin/operations 744,542 800,805 1,161,623 3.47 Planning Cost Recovery 1,066,196 995,800 895,000 36 SUMMARY SCHEDULES
2026 Budget
General Fund by Division
Division 2024 Ac tual 2025 Revised 2026 Budget
Funded
Position
Alloc ation
Appropriations (continuation)
Fire Admin/operations 2,914,545 2,671,395 2,429,340 49.30 Fire Disaster Preparedness 22,943 10,000 10,000 Fire Hazardous Materials 555,931 555,959 633,426 Fire Prevention 684,133 662,141 740,050 Fire Suppression 12,882,781 14,367,115 14,011,764 Fire Suppression-apparatus 330,159 198,645 122,080 Fire Suppression-building/grounds 126,544 41,725 19,500 Fire Suppression-communications 9,510 21,400 21,400 Fire Suppression-supplies 119,590 63,115 53,500 Fire Suppression-training 37,352 17,800 17,800 Ambulance 6,724,517 7,098,406 7,230,799 18.00 Recreation Admin/operations 1,516,630 1,562,495 1,852,268 11.00 Recreation Cavanagh Center 16,761 7,000 7,000 Recreation Community Center 209,069 179,048 163,826 Recreation Library/museum 54,330 67,253 68,546 Recreation Youth/teens Programs 232,683 262,086 229,032 Recreation Contract Classes 183,373 72,500 150,000 Recreation Sports Programs 63,005 45,876 38,000 Recreation Aquatic Programs 344,418 596,550 450,415 Recreation Senior Programs 72,915 54,627 62,328 Recreation Special Events 61,826 42,000 80,000 Police Admin/operations 6,679,423 6,446,854 6,450,732 101.60 Police Communication 1,942,031 2,236,603 2,223,889 Police Cad/rms 392,716 428,647 480,085 Police Investigation 1,973,545 2,107,625 2,221,004 Police Patrol 14,580,848 14,891,170 15,558,661 Police Traffic Safety 2,258,988 2,155,065 2,594,930 Police Records 908,933 896,471 990,230 Parking Enforcement 333,238 303,514 295,079 Pub Works Admin/operations 1,127,358 982,126 1,032,066 9.30 Pub Works Engineering Development 541,150 732,082 1,012,480 Pub Works Engineering Cip 296,300 167,075 162,301 Pub Works Engineering Traffic 111,990 94,896 166,173 Bldg/facility Maintenance 924,273 876,901 891,849 1.70 Pub Works Auto/equip Maint Shop 299,013 302,446 310,470 Pub Works Street Lights 199,494 175,000 202,600 Parks Maintenance 3,353,833 3,320,978 2,837,656 11.50 Downtown Streets/sidewalks Maint 244,139 115,000 104,500 Pub Works Turning Basin/D St Bridge 28,701 39,698 49,883 Total General Fund Appropriations 79,116,015 78,877,435 80,358,744 242.17 Less Intragovernmental Offset (4,364,094) (4,948,510) (5,455,319) General Fund Net Cost 74,751,921 73,928,925 74,903,425 37 SUMMARY SCHEDULES
2026 Budget
General Fund by Account
Ac c ount 2024 Ac tual 2025 Revised 2026 Budget
Revenues
Taxes Revenue 34,890,619 34,705,400 35,525,500 Fees/permits And Fines Revenue 1,904,601 1,950,000 2,007,200 Use Of Property Revenue 1,413,504 1,081,070 972,300 Intergovernmental Revenue 8,754,342 9,384,555 9,920,344 Charges For Service Revenue 13,249,340 14,369,418 13,718,820 Sales Revenue 20,898 10,700 15,000 Miscellaneous 374,590 63,000 203,000 Transfers, Debt Proceeds, City Contribution 16,614,694 16,433,292 17,376,329 Total General Fund Revenues 77,222,588 77,997,435 79,738,493 Appropriations
Salaries 34,039,788 37,922,387 38,074,561 Benefits 21,944,743 24,191,147 26,112,915 Supplies 2,284,780 1,311,596 1,468,715 Professional Services, Maintenance, Repairs 9,163,188 7,214,863 6,630,273 Intragovernmental Services 4,291,667 4,204,235 3,877,654 Utilities 1,452,736 1,434,303 1,453,269 Advertising, Promotion, Debt, Rent , Training 1,758,662 1,037,393 940,189 Capital Expenditures 299,200 154,004 50,050 Transfers 3,881,251 1,407,507 1,751,118 Total General Fund Appropriations 79,116,015 78,877,435 80,358,744 Less Intragovernmental Offset (4,364,094) (4,948,510) (5,455,319) GENERAL FUND NET COST 74,751,921 73,928,925 74,903,425 38 SUMMARY SCHEDULES
2026 Budget
Measure H by Account
2026 Budget
Measure U by Account
Account Type 2024 Actual 2025 Revised 2026 Budget
Revenues
Taxes Revenue
16,151,794
15,615,000
15,708,000
Total Measure U Fund Revenues
16,151,794
15,615,000
15,708,000
Appropriations
Transfers
21,495,395
15,683,299
15,708,000
Total Measure U Fund Appropriations
21,495,395
15,683,299
15,708,000
Ac c ount Type 2024 Ac tual 2025 Revised 2026 Budget
Funded
Positions
Alloc ation
Revenues
Taxes Revenue - 3,225,000 4,486,560 Total Measure U Fund Revenues - 3,225,000 4,486,560 Appropriations
Salaries 323,675 1
Benefits 26,453
Professional Services, Maintenance, Repairs 15,000
Capital Expenditures 881,000
Transfers - 1,932,000 2,605,000 Total Measure U Fund Appropriations - 1,932,000 3,851,128 1 39 SUMMARY SCHEDULES
2026 Budget
Special Revenue, Trust & Debt Funds by Fund
Fund 2024 Ac tual 2025 Revised 2026 Budget
Revenues
Commercial Linkage Fees 106,194 1,225,502 538,194 Housing In-lieu Impact Fees 1,581,016 384,920 79,309
Park Land Acquisition Impact Fees-08 174,321 193,931 50,028 Park Land Development Impact Fees-08 349,273 497,331 41,865 Open Space Acquisition Impact Fees-08 82,741 52,093 12,545 City Facilities Development Impact Fee 1,225,961 629,776 145,989 Storm Drainage Impact Fees 79,115 54,934 46,115 Storm Drainage Impact Fees - 08 23,955 67,308 11,172 Traffic Impact Fees 46,831 40,624 33,984 Traffic Impact Fees - 08 1,376,350 4,893,671 629,997 Public Art Fees 7,095 460,631 33,261 3% Admin Fee - 08 63,067 145,740 355,855 General Gov Grants - - 758,000 Comm Develop Grants 2,028,615 1,310,000 - Community Development Block Grant (CDBG) 522,433 599,786 311,868 Home/begin 164,045 9,077 7,621 Permanent Local Housing Authority (PLHA) 185,103 575,000 121,138 Fire Grants 1,500 - - Parks And Rec Grants 85,118 1,414,000 - Police Grants 2,079,707 2,001,698 1,378,140 Public Works Grants 3,152,661 308,000 2,752,000 Donations/developer Contrib 101,464 - - Abandoned Vehicle Abatement 127,101 104,413 68,707 Asset Seizures 175,942 706 599 Haz Mat Fines-fire 1,695 1,196 1,005 Supplemental Law Enforcement Services Fund (SLESF) 279,490 157,213 236,059 Gas Tax 3,158,735 3,188,554 3,268,521 Street Maintenance (HUT) 6,567,008 6,514,273 6,919,308 Solid Waste Contract Management 53,972 53,918 59,117 Landscape Assessment Districts 663,599 519,841 668,526 Transient Occupancy Tax 3,672,489 4,043,677 3,680,885 Petaluma Tourism Improvement District 164,875 150,856 141,109 Prince Park Trust 1,891 2,836 2,371 Virginia Craig Estate/Trust 532,025 - - Measure M Parks 881,918 952,783 877,468 Fairgrounds 238,366 570,358 1,424,000 Wickersham Park Trust 755 532 446 2021 Lease Revenue Bonds (Road Improvements) 3,385,116 2,038,667 366,671 Successor Agency Housing 910,084 536,097 885,521 Mobile Home Rent Program 24,171 25,710 56,590 Child Care Trust 2,970 2,097 1,760 Thomas Lee Charity Trust 706 498 419 Total Special Revenue, Trust & Debt Funds Revenues 34,279,473 33,728,247 25,966,163 40 SUMMARY SCHEDULES
2026 Budget
Special Revenue, Trust & Debt Funds by Fund
Fund 2024 Ac tual 2025 Revised 2026 Budget
Funded
Position
Alloc ation
Appropriations
Commercial Linkage Fees 875,617 523,863 95,604 Housing In-lieu Impact Fees 515,491 1,950,455 1,444,034 Park Land Acquisition Impact Fees-08 1,896 2,765 21,150 Park Land Development Impact Fees-08 14,315 1,070,200 365,000 Open Space Acquisition Impact Fees-08 1,249 762 5,199 City Facilities Development Impact Fee 602,248 1,946,378 5,952,537 Storm Drainage Impact Fees 254,033 421,000 1,896,000 Storm Drainage Impact Fees - 08 7,569 1,080 171,171 Traffic Impact Fees 260,800 1,112,722 - Traffic Impact Fees - 08 2,017,264 461,441 4,415,176 Public Art Fees 312,879 219,729 11,014 3% Admin Fee - 08 202,822 201,147 260,347 General Government Grants - - 758,000 Comm Develop Grants 3,091,607 990,000 2,136,584 Community Development Block Grant (CDBG) 520,926 636,948 317,000 Home/begin - 90,000 - Permanent Local Housing Authority (PLHA) - 1,270,000 125,713 Parks And Rec Grants 298,238 1,630,000 - Police Grants 2,023,623 1,998,870 1,365,770 Public Works Grants 2,042,145 457,487 2,752,000 Donations/developer Contrib 83,361 200 974 Abandoned Vehicle Abatement 164,091 171,797 179,405 1.00 Asset Seizures 703 22 149,062 Haz Mat Fines-fire 341 - - Supplemental Law Enforcement Services Fund (SLESF) 130,029 160,010 200,625 Gas Tax 3,192,402 3,185,630 3,273,581 Street Maintenance (HUT) 4,809,600 3,806,330 7,982,787 13.70 Street Signs And Markings 751,760 1,278,828 980,864 4.75 Street Signals And Lights 1,029,946 946,295 1,066,745 3.15 Solid Waste Contract Mgmt 26,169 29,882 14,369 0.10 Landscape Assessment Districts 656,977 505,901 733,377 0.30 Transient Occupancy Tax 4,267,395 4,295,267 3,776,475 Petaluma Tourism Improvement District 14,577 184,700 304,910 Prince Park Trust 182,520 - - Virginia Craig Estate/Trust - 532,000 - Measure M Parks 1,196,103 1,040,679 924,026 1.00 Fairgrounds 456,288 570,502 1,577,473 2.50 2021 Lease Revenue Bonds (Road Improvements) 10,530,062 913,719 913,219 Successor Agency Housing 766,640 479,734 881,932 2.00 Mobile Home Rent Program 123,161 7,418 3,025 Child Care Trust
Thomas Lee Charity Trust
Total Special Revenue, Trust & Debt Funds Appropriations 41,424,847 33,093,761 45,055,148 28.50 41 SUMMARY SCHEDULES
2026 Budget
Special Revenue, Trust & Debt Funds by Account
Ac c ount Type 2024 Ac tual 2025 Revised 2026 Budget
Revenues
Taxes Revenue 6,226,887 6,736,513 6,117,025 Fees/permits And Fines Revenue 2,328,316 7,620,424 1,365,109 Use Of Property Revenue 4,406,504 1,916,489 1,919,147 Intergovernmental Revenue 11,406,867 10,220,659 9,974,062 Charges For Service Revenue 742,489 720,903 1,063,847 Miscellaneous 760,208 435,000 18,000 Transfers, Debt Proceeds, City Contribution 8,408,202 6,078,259 5,508,973 Total Special Revenue, Trust & Debt Funds Revenues 34,279,473 33,728,247 25,966,163 Appropriations
Salaries 2,590,941 3,077,842 3,219,750 Benefits 1,107,235 1,495,926 1,498,008 Supplies 833,146 583,030 529,261 Professional Services, Maintenance, Repairs 7,251,440 9,880,450 7,709,175 Intragovernmental Services 1,068,256 1,176,831 1,561,767 Utilities 426,679 341,851 487,501 Advertising, Promotion, Debt, Rent , Training 1,181,454 1,049,400 1,221,917 Capital Expenditures 559,833 770,442 - Transfers 26,405,863 14,717,989 28,827,769 Total Special Revenue, Trust & Debt Funds Appropriations 41,424,847 33,093,761 45,055,148 42 SUMMARY SCHEDULES
2026 Budget
Enterprise Funds by Fund
Fund 2024 Ac tual 2025 Revised 2026 Budget
Funded
Position
Alloc ation
Revenues
Airport 2,813,181 2,384,533 6,676,395 Building Services 2,772,973 2,500,544 2,675,992 Marina 210,839 253,500 221,600
Transit 4,483,332 9,872,585 10,046,153 Total Enterprise Funds Revenues 10,280,325 15,011,162 19,620,140 Appropriations
Airport 2,783,433 2,851,166 5,158,676 2.93 Building Services 3,456,791 3,292,054 3,046,660 9.68 Marina 780,275 438,152 444,853 0.53 Transit 5,553,797 11,360,454 10,286,001 6.33 Total Enterprise Funds Appropriations 12,574,296 17,941,826 18,936,190 19.47 43 SUMMARY SCHEDULES
2026 Budget
Enterprise Funds by Division
Division 2024 Ac tual 2025 Revised 2026 Budget
Revenues
Airport Admin/operations 2,826,586 2,384,533 6,676,395 Building Admin 110,649 79,404 74,902 Building Services 2,675,164 2,346,140 2,601,090 Building Svc Cost Recovery 6,817 75,000 - Marina Admin/operations 210,839 253,500 221,600 Transit Admin 3,320,287 2,971,371 2,831,502 Transit City Routes 1,035,511 5,789,279 5,899,351 Paratransit 127,534 1,111,935 1,315,300 Total Enterprise Funds Revenues 10,313,387 15,011,162 19,620,140 Appropriations
Airport Admin/operations 2,057,707 2,211,916 4,590,676 Airport Fueling 539,907 520,750 440,500 Airport Hangars 185,819 118,500 127,500 Building Admin 269,920 562,483 332,548 Building Services 3,165,727 2,645,571 2,640,534 Building Svc Cost Recovery 21,144 84,000 73,578 Marina Admin/operations 780,275 438,152 444,853 Transit Admin 1,427,068 7,826,610 1,831,712 Transit City Routes 3,359,974 2,761,794 7,571,789 Paratransit 766,755 772,050 882,500 Total Enterprise Funds Appropriations 12,574,296 17,941,826 18,936,190 44 SUMMARY SCHEDULES
2026 Budget
Enterprise Funds by Account
Ac c ount type 2024 Ac tual 2025 Revised 2026 Budget
Revenues
Taxes Revenue 180,337 182,000 170,000 Fees/permits And Fines Revenue 2,707,327 2,381,640 2,628,090 Use Of Property Revenue 1,487,863 1,555,024 1,555,098 Intergovernmental Revenue 4,842,104 9,736,498 14,195,252 Charges For Service Revenue 51,630 117,000 43,500 Utility Revenue 252,499 - 40,000 Sales Revenue 756,317 855,500 805,600 Miscellaneous 2,248 3,500 2,600 Transfers, Debt Proceeds, City Contribution - 180,000 180,000 Total Enterprise Fund Revenues 10,280,325 15,011,162 19,620,140 Appropriations
Salaries 2,004,420 2,544,611 2,418,772
Benefits 769,777 994,312 1,053,718
Supplies 1,264,977 1,212,400 1,061,140
Professional Services, Maintenance, Repairs 4,143,080 3,696,879 3,632,121 Intragovernmental Services 1,322,540 1,423,756 1,422,248 Utilities 244,563 149,400 249,615
Advertising, Promotion, Debt, Rent , Training 1,695,728 774,433 931,041 Capital Expenditures - 5,075,335 5,041,835 Transfers 1,129,211 2,070,700 3,125,700
Total Enterprise Fund Appropriations 12,574,296 17,941,826 18,936,190 45 SUMMARY SCHEDULES
2026 Budget
Utilities Funds by Fund
Fund 2024 Ac tual 2025 Revised 2026 Budget
Funded
Position
Alloc ation
Revenues
Waste Water 32,639,874 34,624,356 36,063,934 Waste Water Rate Stabilization 112,606 79,482 66,738 Water 24,406,319 23,669,109 29,422,131 Storm Water 867,340 1,001,137 865,326 Total Utilities Fund Revenues 58,026,139 59,374,084 66,418,129 Appropriations
Waste Water 36,269,430 49,218,602 57,632,626 44.78 Water 21,706,904 31,383,639 29,051,658 36.93 Storm Water 574,442 1,439,153 1,777,106 4.14 Total Utilities Fund Appropriations 58,550,776 82,041,394 88,461,390 85.85 46 SUMMARY SCHEDULES
2026 Budget
Utilities Funds by Division
Division 2024 Ac tual 2025 Revised 2026 Budget
Revenues
Waste Water Admin 32,768,464 34,112,356 35,788,934 Waste Water Capacity Fees (128,590) 512,000 275,000 Waste Water Rate Stabilization 112,606 79,482 66,738 Water Admin 24,211,436 23,669,109 29,338,131 Water Capacity Fees 171,124 - 80,000 Water Conservation 23,759 - 4,000 Storm Drainage Utility Admin 867,340 1,001,137 865,326 Total Utilities Fund Revenues 58,026,139 59,374,084 66,418,129 Appropriations
Waste Water Admin 22,705,950 32,940,631 40,230,103 Waste Water Collect System 1,205,818 2,119,944 1,801,119 Waste Water Sewage Pump Stations 773,869 960,121 916,830 Waste Water Customer Svc 60,064 85,800 120,000 Waste Water Industrial 708,320 496,571 664,136 Waste Water Reclamation 1,299,648 1,840,320 1,765,926 Waste Water Storm Drain 97,161 126,491 231,539 Waste Water Ellis Creek Operations 9,418,600 10,359,824 11,614,073 Waste Water Laboratory - 288,900 288,900 Water Admin 7,339,368 12,015,062 10,535,693 Water Conservation 629,732 1,616,581 1,455,950 Water Customer Services 1,347,205 1,240,786 1,277,109 Water Leak Detect/cross Connect 143,663 171,628 167,675 Water Pumping 526,473 772,582 651,391 Water Source Of Supply 8,108,905 10,521,915 10,500,000 Water Transmission & Distribution 3,611,558 5,045,085 4,463,840 Storm Drainage Utility Admin 574,442 1,439,153 1,777,106 Total Utilities Fund Appropriations 58,550,776 82,041,394 88,461,390 47 SUMMARY SCHEDULES
2026 Budget
Utilities Funds by Account
Ac c ount type 2024 Ac tual 2025 Revised 2026 Budget
Revenues
Taxes Revenue 293,693 293,693 312,500 Fees/permits And Fines Revenue 3,389 2,000 4,000 Use Of Property Revenue 2,632,896 1,833,919 1,438,857 Intergovernmental Revenue 63,047 150,000 - Utility Revenue 52,346,959 55,533,800 63,104,100 Sales Revenue 53,270 40,000 40,000 Miscellaneous 34,858 898,619 896,619 Transfers, Debt Proceeds, City Contribution 2,598,027 622,053 622,053 Total Utilities Fund Revenues 58,026,139 59,374,084 66,418,129 Appropriations
Salaries 8,137,369 9,994,056 10,301,395 Benefits 3,578,981 4,425,998 4,983,390 Supplies 11,038,612 13,879,938 13,937,000 Professional Services, Maintenance, Repairs 4,041,502 7,527,146 7,663,000 Intragovernmental Services 4,831,360 5,156,133 5,107,892 Utilities 3,110,053 2,763,861 2,809,950 Advertising, Promotion, Debt, Rent , Training 9,153,929 10,020,276 10,001,758 Capital Expenditures - 720,186 578,300 Transfers 14,658,970 27,553,800 33,078,705 Total Utilities Fund Appropriations 58,550,776 82,041,394 88,461,390 48 SUMMARY SCHEDULES
2026 Budget
Internal Service Funds by Fund
Fund 2024 Ac tual 2025 Revised 2026 Budget
Funded
Position
Alloc ation
Revenues
Employee Benefits 1,614,658 1,677,182 1,778,934 General Services 14,210 10,815 9,077 Information Technology 4,871,663 5,542,472 5,277,357 Risk Management 3,248,714 2,784,774 2,270,672 Vehicle and Equipment Replacement 2,309,807 1,952,201 522,930 Workers' Compensation 5,165,970 4,525,414 4,637,232 Total Internal Service Funds Revenues 17,225,022 16,492,858 14,496,202 Appropriations
Employee Benefits 687,391 1,187,160 1,142,723 General Services 146,308 158,984 167,333 1.00 Information Technology 5,141,342 4,455,235 4,748,381 10.00 Risk Management 1,508,296 3,687,515 4,278,548 3.00 Vehicle and Equipment Replacement 1,039,519 3,248,748 590,810 Workers' Compensation 4,758,629 3,760,805 3,726,427 0.5 Total Internal Service Funds Appropriations 13,281,485 16,498,447 14,654,222 14.50 49 SUMMARY SCHEDULES
2026 Budget
Internal Service Funds by Account
Ac c ount type 2024 Ac tual 2025 Revised 2026 Budget
Revenues
Use Of Property Revenue 764,562 366,673 308,008 Charges For Service Revenue 14,086,268 13,798,070 13,585,079 Miscellaneous 191,916 103,115 103,115 Transfers, Debt Proceeds, City Contribution 2,182,276 2,225,000 500,000 Total Internal Service Funds Revenues 17,225,022 16,492,858 14,496,202 Appropriations
Salaries 1,345,791 2,094,171 2,031,783 Benefits 749,722 1,089,693 1,062,141 Supplies 425,356 219,080 149,000 Professional Services, Maintenance, Repairs 2,895,898 2,147,100 1,064,363 Intragovernmental Services 417,963 485,371 487,167 Advertising, Promotion, Debt, Rent , Training 6,771,755 7,214,284 9,156,933 Capital Expenditures - 3,248,748 575,000 Transfers 675,000 - 127,835 Total Internal Service Funds Appropriations 13,281,485 16,498,447 14,654,222 50 SUMMARY SCHEDULES
2026 Budget
Capital Projects Funds by Fund
Fund 2024 Ac tual 2025 Revised 2026 Budget
Funded
Position
Alloc ation
Revenues
Facilities CIP 5,088,787 4,058,100 20,808,181 Parks and Rec CIP 4,846,277 3,399,767 4,185,767 Public Works CIP 17,882,354 8,582,824 14,343,824 Airport CIP 694,274 206,000 2,747,000 Transit CIP 434,936 1,573,000 99,000 Waste Water CIP 12,856,256 24,168,000 28,828,000 Water CIP 1,089,397 12,052,000 4,823,000 Total Capital Projects Funds Revenues 42,392,281 54,039,691 75,834,772 Appropriations
Facilities CIP 6,120,094 6,951,578 18,841,371 8.29 Parks and Rec CIP 5,118,311 6,835,567 5,729,783 1.25 Public Works CIP 12,389,547 10,826,973 16,209,259 6.63 Airport CIP 559,874 180,600 2,807,194 0.55 Transit CIP 433,977 1,572,750 129,063 0.34 Waste Water CIP 14,187,135 20,736,350 28,389,802 6.00 Water CIP 3,735,747 9,381,000 4,844,418 2.00 Total Capital Projects Funds Appropriations 42,544,685 56,484,818 76,950,890 25.06 51 SUMMARY SCHEDULES
2026 Budget
Capital Projects Funds by Account
Ac c ount type 2024 Ac tual 2025 Revised 2026 Budget
Revenues
Use Of Property Revenue 11,879 - - Intergovernmental Revenue 334,993 10,722,000 2,945,000 Miscellaneous 1,492,568 - 11,853,000 Transfers, Debt Proceeds, City Contribution 40,552,841 43,317,691 61,036,772 Total Capital Projects Funds Revenues 42,392,281 54,039,691 75,834,772 Appropriations
Salaries 1,104,899 2,513,781 3,535,834 Benefits 325,642 962,072 1,316,590 Supplies 3,238,225 140,000 185,315 Professional Services, Maintenance, Repairs 37,199,767 51,881,772 70,557,036 Intragovernmental Services 445,850 490,602 728,434 Utilities 282 - - Advertising, Promotion, Debt, Rent , Training 58,413 496,591 627,681 Capital Expenditures 16,498 - - Transfers 155,108 - -
Total Capital Projects Funds Appropriations 42,544,684 56,484,818 76,950,890 52 SUMMARY SCHEDULES
2026 Budget
Successor Agency by Fund
Successor Agency by Account
Fund 2024 Ac tual 2025 Revised 2026 Budget
Funded
Position
Alloc ation
Revenues
Successor Agency Debt Service 4,024,422 4,023,124 3,998,679 Successor Agency Admin 252,927 252,449 143,208 Total Successor Agency Funds Revenues 4,277,349 4,275,573 4,141,887 Appropriations
Successor Agency Debt Service 1,713,619 4,023,125 3,998,679 Successor Agency Admin 234,364 151,620 143,208 0.85 Total Successor Agency Funds Appropriations 1,947,983 4,174,745 4,141,887 0.85 Ac c ount Type 2024 Ac tual 2025 Revised 2026 Budget
Revenues
Taxes Revenue 4,274,422 4,273,124 4,141,887 Use Of Property Revenue 2,927 2,449 - Total Successor Agency Funds Revenues 4,277,349 4,275,573 4,141,887 Appropriations
Salaries 90,509 53,197 57,595 Benefits 37,168 28,081 30,707 Supplies - 1,000 200 Professional Services, Maintenance, Repairs 11,591 4,016 4,098 Intragovernmental Services 92,264 45,326 40,608 Utilities 2,070
Advertising, Promotion, Debt, Rent , Training 1,714,381 4,043,125 4,008,679 Total Successor Agency Funds Appropriations 1,947,983 4,174,745 4,141,887 53 SUMMARY SCHEDULES
2026 Budget
Citywide Capital Vehicle and Equipment Appropriations
Fund: General Fund
Description Justification / Explanation Quantity Cost Department ADA Chair Lift Replacement of an ADA chair lift at the swim center
1 50,050 Parks &
Recreation
Recreation Aquatic Programs Subtotal 50,050
General Fund Capital 50,050
Fund: Measure H
Description Justification / Explanation Quantity Cost Department Carport Carport or storage structure at Fire Station 2 for fire equipment
1 50,000 Fire
Station Alerting Replacing the current alerting system in all 3 fire stations that does not meet industry standards and
delays crew notification of an emergency.
1 339,000 Fire
Emergency radio repeater Upgrade to allow emergency radio redundancy and an increased reliable communication in Southern
Sonoma County during emergencies
1 20,000 Fire
Heart Monitors Replace departments' heart monitors that are beyond their intended service life
2 112,000 Fire
Ambulance Remount The oldest reserve ambulance box reserve ambulance box will be refurbished and remounted
to a new cab/chassis. This will replace a high
mileage ambulance
1 360,000 Fire
Measure H Subtotal 881,000
Measure H Fund Capital 881,000
Fund: Airport
Description Justification / Explanation Quantity Cost Department Skid Steer Replacement of a 28+ year Tractor / Mower nearing the end of its useful life. A Skid Steer would allow
staff to also use it as forklift, loader, spreader,
digger and other functions that currently require
rental of additional equipment
1 130,000 PW
Ford Lightning (or other EV) Airport staff fleet vehicle 1 70,000 PW Airport Subtotal 200,000
Fund: Transit
Description Justification / Explanation Quantity Cost Department Electric Busses Approved by Reso No. 2024-006. Carryforward budget from FY23 & FY24 & FY25
4 4,841,835 PW
Transit Subtotal 4,841,835
Enterprise Fund Capital 5,041,835
54 SUMMARY SCHEDULES
2026 Budget
Citywide Capital Vehicle and Equipment Appropriations
Fund: Waste Water
Description Justification / Explanation Quantity Cost Department Skid Steer For multi operational needs including weed
abatement, creek maintenance, and infrastructure
maintenance. A Skid Steer allows access into tight
access areas and can be used for brush clearing,
excavation, material transport and other needs
0.5 37,500 Water & Utilities
Electric Vehicles Replacement of 2 aging gas powered vehicles nearing the end of their useful life and high
maintenance costs. Cost split 50/50 Waster Water
& Water
1 50,000 Water & Utilities
Electric van Replacement of an old pipeline inspection van. The current camera inspection equipment will be
installed in the new van
1 90,000 Water & Utilities
Waste Water Collect System Subtotal 177,500
Description Justification / Explanation Quantity Cost Department Chipper For creek maintenance, other water and
wastewater operations
0.5 42,500 Water & Utilities
Vehicles leases Lease vehicle costs 20,500 Water & Utilities Waste Water Storm Drain Subtotal 63,000
Fund: Water
Description Justification / Explanation Quantity Cost Department Skid Steer For multi operational needs including weed
abatement, creek maintenance, and infrastructure
maintenance. A Skid Steer allows access into tight
access areas and can be used for brush clearing,
excavation, material transport and other needs
0.5 37,500 Water & Utilities
Electric Vehicles Replacement of 2 aging gas powered vehicles nearing the end of their useful life and high
maintenance costs. Cost split 50/50 Waster Water
& Water
1 50,000 Water & Utilities
Vehicles leases Lease vehicle costs 8,900 Water & Utilities Water Administration Subtotal 96,400
Description Justification / Explanation Quantity Cost Department Ford Lightening Replacement of a current truck that is beyond its useful life, has high repair costs and is unreliable.
1 75,000 Water & Utilities
Vehicles leases Lease vehicle costs 36,700 Water & Utilities Water Conservation Subtotal 111,700
Description Justification / Explanation Quantity Cost Department Chipper For creek maintenance, other water and
wastewater operations
0.5 42,500 Water & Utilities
Vehicles leases Lease vehicle costs 87,200 Water & Utilities Water Transmission & Distribution Subtotal 129,700
Utilities Fund Capital 578,300
55 SUMMARY SCHEDULES
2026 Budget
Citywide Capital Vehicle and Equipment Appropriations
Fund: Vehicle and Equipment Replacement
Description Justification / Explanation Quantity Cost Department Vehicles leases Lease vehicle costs 575,000 Citywide Vehicle & Equipment Replacement Subtotal 575,000
Internal Service Fund Capital 575,000
Total Capital, Vehicle and Equipment Appropriations 7,126,185 56 CLIMATE ACTION BASELINE OVERVIEW
Climate Action Baseline, Projects and Program Overview
Petaluma Climate Action
Perhaps the most pertinent action taken in the previous fiscal year was the November 4, 2024 adoption of the Blueprint for Climate Action ( https://cityofpetaluma.org/departments/climate-ready-2030/). The Blueprint document describes the need for climate action and outlines specific actions needed to be taken by both the City of Petaluma and community members living, working, and playing in Petaluma to achieve carbon neutrality.
The City of Petaluma is committed to carbon neutrality by 2030 and is taking aggressive action to meet this goal. Capital Improvement Plan (CIP) projects are categorized as Climate First initiatives when they meet one or more of the following criteria:
• Improves active transportation infrastructure or includes active transportation components. • Includes GHG reduction measures.
• Improves energy efficiency of facilities, infrastructure, or equipment. • Includes execution of agreements or contracts where the contractor commits to prioritizing the use of sustainable materials and practices in design development. This includes utilizing the EPA’s Comprehensive Procurement Guidelines for Construction Products (https://www.epa.gov/smm/comprehensive-procurement-guidelines-construction-products) and providing the City with an embodied carbon estimate for overall project(s) using the Embodied Carbon in Construction Calculator (https://www.buildingtransparency.org/ ). • Includes project components that result in habitat restoration, carbon sequestration, climate adaptation, or increases in overall tree canopy.
• Results in solid waste diversion or reduction of consumption emissions. • Supports the electrification of fleet, infrastructure, or municipal operations.
Projects included in the Capital Improvement Program represent a total investment of $390.8 million for projects that have been categorized as Climate First initiatives and are shown below for reference. More details for each project can be found in the Capital Improvement Program section of the document:
Climate First Capital Improvement Projects
Category Capital Project Number Project Description
Airport C61502218 Airport Emergency Power Backup
Facilities C11202433
Fire Station 1 - Seismic, Safety, and Privacy
Upgrades
C11202431 Petaluma Public Safety Facility
C11502536 Keller Street Garage - Interior Light Retrofit & Replacement
C11202223 City Facilities HVAC Replacements
C11502015 Electric Vehicle Chargers
57 CLIMATE ACTION BASELINE OVERVIEW
Category Capital Project Number Project Description
NEW City Facilities Energy Efficiency Projects
C11202018 Emergency Power Back-up at City Hall and
Police Headquarters
C11202223 HVAC and Energy Efficiency Upgrades
Parks C14502114 Lynch Creek Trail/ Crosstown Connector
C14502317 Kenilworth Park Revitalization
E14402237 Petaluma River Dredging Program
Public Works C16102433 Petaluma North SMART Station Access Improvements
C16501602 Downtown Pedestrian ADA Improvements
C16502430 Downtown Public Restroom &
Beautification
NEW Safe Streets Quick Builds
NEW Crosswalk and Signal Improvements
NEW
SMART Pathway Extension: Lakeville to N
Water Street
C16102032 Pedestrian Improvements Citywide
NEW
Corona Road Bicycle/Pedestrian
Crosstown Connector
C16401824 Caulfield Bridge Crosstown Connector
C16402252 Pedestrian Bridge Renovations
C16101519
River Trail-101 Crossing & Crosstown
Connector
C16102435 Pavement Restoration - Howard Street
C16102434 Pavement Restoration - Rainier Avenue
C16102251 Pavement Restoration - D Street
C16102428 Pavement Restoration - Caulfield Lane
C16102537 Pavement Restoration - St. Francis Drive
NEW
FY 26/27 Pavement Restoration &
Maintenance
NEW
FY 27/28 Pavement Restoration &
Maintenance
NEW
FY 28/29 Pavement Restoration &
Maintenance
NEW
FY 29/30 Pavement Restoration &
Maintenance
Recycled Water C66401416 Tertiary Filtration System Expansion
C66501936 Agricultural Recycled Water System
Expansion- Adobe Road (Phase One)
58 CLIMATE ACTION BASELINE OVERVIEW
Category Capital Project Number Project Description
NEW Agricultural Recycled Water System
Expansion- Adobe Road (Phase Two)
NEW Agriculture Recycled Water Pipeline
Expansion Program
C66401302 Agricultural Recycled Water System -
Turnout And Meter Replacements
NEW Recycled Water Fill Station
C66501834 Urban Recycled Water System Expansion -
Maria Extension/Loop
C66502347 Urban Recycled Water System Expansion –
Park Irrigation Conversions
C66402555 Urban Recycled Water System Expansion -
St. Francis
C66402555 Urban Recycled Water System Expansion -
Oakmead
NEW Urban Recycled Water System Expansion -
Baywood Dr/101 Crossing
NEW Urban Recycled Water System Expansion -
Corona Loop
NEW Urban Recycled Water Pipeline Expansions
Surface Water C16501931 Storm Drain Trash Capture Device Pilot C16502254
Wilson Stormwater Pump Station & Outfall
Upgrades
C16502431
Corona Creek Flood Reduction and Habitat
Enhancement
C16301518 Old Corona Road Water Quality Mitigation
Transit C65502214 Transit Fleet Charging Infrastructure C65502211 Bus Stop Improvements
Waste Water C66501518 CNG Fueling Station at Ellis Creek C66401728 Ellis Creek High Strength Waste Facilities
Water Utilities Projects E67502242 Advanced Metering Infrastructure (AMI) E67502243 Aquifer Storage & Recovery (ASR) Plan
C67502329
Potable Water Fill Stations and Security
Improvements
There are several other non-capital notable projects currently underway that support the City of Petaluma’s climate goals:
59 CLIMATE ACTION BASELINE OVERVIEW
Solar Initiatives:
Parking lot canopy photovoltaic solar arrays have been installed and are generating electricity at the Community Center and Community Sports Field. Solar arrays like these derive clean, pure energy from the sun, help combat greenhouse gas emissions, and work to reduce our collective dependence on fossil fuels.
The City’s partner in the canopy solar project, Forefront Power, sent the City notice, as allowed under the Power Purchase Agreement, that the Police Department and Swim Center sites were no longer viable for solar development and exercised their right to withdraw from the agreement. Staff has been attempting to deliver alternative solutions for renewable energy generation where viable projects exist.
Floating Solar:
The City’s Ellis Creek Water Recycling Facility (ECWRF) operates continuously throughout the year and is the City’s largest electricity user. In July 2021, all City electric accounts were moved to Sonoma Clean Power’s (SCP) Evergreen Power which provides e lectricity from renewable sources. A project to install solar panels atop floats on Pond #3 at ECWRF was approved by Council on December 19, 2022 and the project was amended on February 26, 2024.
The solar project broke ground in fall 2024 , will be operational no later than the end of 2025 , and is expected to save the Ellis Creek Water Recycling Facility approximately $11.7 million in electricity costs over a 20-year span. This may be an underestimate of the savings as there have been significant electricity rate increases recently.
Adoption of the Blueprint for Climate Action:
The Council adopted the Blueprint for Climate Action (Blueprint) on November 4, 2024. The Blueprint is the City’s climate action plan ; a document which sets the stage for why climate action is necessary, Petaluma’s baseline emissions by category, and hundreds of actions on topics from Clean Energy to Municipal Operations for both the City of Petaluma and its community members to take in order to significantly reduce Petaluma’s climate pollution contribution. Staff, CCBs, and community members are working to implement the identified Blueprint actions.
Adoption of Tree Preservation Ordinance:
Trees have multiple positive benefits related to providing wildlife habitat, sequestering carbon to help mitigate climate change, reducing the heat -island effect, and increasing property values through beautification. Petaluma’s existing tree ordinance has not been updated to realize the increased benefit of enhanced tree protection. The updated tree preservation ordinance would update internal processes and permitting related to tree removal, update provisions for tree maintenance, planting in the public right of way, and update standard provisions for all entitlements and land use permitting. This legislative effort is expected to be considered by Council in Fiscal Year 2025.
60 CLIMATE ACTION BASELINE OVERVIEW
EV Charging Infrastructure Master Plan:
The City of Petaluma is working with NV5 to provide a Citywide EV charging infrastructure master plan.
The master plan has identified five sites and developed design documents (permit -ready) to facilitate increased EV charging opportunity for City fleet and public vehicles. These locations are City Hall, Community Center (public, DC fast charging), Corporation Yard, Ellis Creek Water Recycling Facility, and Water Field Office. Rough estimates from NV5 are approximately $3 million for the five site, and woul d provide 15 level 2 charging ports and 15 – DC Fast Charging ports.
EV Preferred Purchasing Policy:
The purpose of this policy is to document the process for purchasing and managing the City’s diverse vehicle fleet, which includes vehicles, bicycles, and heavy equipment, in a manner that minimizes greenhouse gas emissions and considers life -cycle economics. By 2030, the City strives to transition all passenger vehicles and heavy equipment in the City fleet to 100% zero- emissions vehicles (ZEVs).
Generator Feasibility Study:
The City has been awarded Department of Housing and Community Development grant funds to identify backup power needs at critical City facilities. Renewable energy systems will be considered as part of facility backup power. This project is expected to be completed in calendar year 2026.
Purchase of Fossil Fuels for Equipment and Facility Use In recognition of Resolution No. 2019-055 N.C.S. declaring a Climate Emergency, Resolution No. 2021-007 N.C.S. adopting a Climate Emergency Framework, priority action items recommended by the Climate Action Commission and accepted by the City Council on Ja nuary 11, 2021 , and the adoption of the Blueprint for Climate Action on November 4, 2024 , staff has prepared a summary of both fossil and renewable fuel purchases for Fiscal Years 2022, 2023, 2024, and through December 31 of FY 2025. This information is provided both as a benchmark to track the City’s direct contribution of fossil fuel purchases and resulting greenhouse gas emissions, and to provide information for focusing future decarbonization activities. The information presented in this section has been calculated based on gallons of fuel purchased over the noted fiscal years.
61 CLIMATE ACTION BASELINE OVERVIEW
Fuel Usage (in Gallons) by Department per Fiscal Year
Fossil Fuel Usage
Overall, fossil fuel usage from Fiscal Year 2022 to 2024 is relatively steady, with a slight decline in gasoline usage and an increase in diesel usage.
On a departmental level, the highest fossil fuel usage are attributed to the Police Department and Public Works and Utilities. Both departments are vehicle dependent with specific needs for vehicle specifications and the electric vehicle technology to meet these specifications is still developing, however 15 light duty trucks have been replaced with Ford F150 Lightning EVs, mostly in those departments. The goal of the City vehicle fleet electrification continues to be a high priority, and the City has replaced internal combustion fleet vehicles with EV alternatives in the Community Development, Fire, Parks and Recreation, Police, Public Works and Utilities Departments. To support the City’s climate goals, staff has enacted a policy in which electric vehicles are purchased where the need and funding exists, and to lease vehicles where a suitable electric vehicles replacement is not yet commercially available.
Gasoline Diesel Renew. Diesel Gasoline Diesel Renew. Diesel Gasoline Diesel Renew. Diesel Fire Admin 5 - 50 - 57 - 67 Fire 3,139 173 9,726 3,784 - 10,836 2,602 - 6,521 Ambulance 18 - 9,038 - - 10,005 - - 6,526 Police Investigation 276 - 496 19 55 32 Police 50,704 714 50,512 509 24,939 77 PW Admin 18 - 277 - 309 - PW Engineering Dev 6 - - - - - Building Maintenace 1,091 - 1,765 - 292 133 Fleet Maintenance 676 - 109 - 70 - Parks Maintenance 5,140 2,161 3,769 3,048 1,915 2,386 PW Streets 5,867 1,665 6,529 4,141 3,491 1,876 PW Paint and Signs 2,528 42 318 - 305 - PW Street Lighing 1,522 55 1,269 - 562 27 Airport 1,455 326 1,072 163 704 183 Building Inspections 1,403 - - - - - Transit 0 - 48,144 - - 52,911 - 26,511 Para Transit 6,837 - 9,864 - 18,483 - Waste Water Admin 177 4 - 59 132 - Sewer C ollection 373 1,955 402 2,434 - 1,073 Waste Water Storm Drain 127 709 - - - Ellis C reek 4,071 1,002 2,345 183 2,189 99 Water Admin 734
Water Resources 14,874 4,233 12,402 9,540 4,454 6,623 Storm Water 12 82 28 - General Services 17 - - - 12 - Total 100,325 13,038 66,908 94,972 20,178 73,752 61,330 12,508 39,626 FY 2025 (through December 2024)FY 2024Department FY 2023 62 CLIMATE ACTION BASELINE OVERVIEW
Diesel Usage by Department per Fiscal Year
Renewable Diesel Usage by Department per Fiscal Year
-
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
18,000.00
2019 2020 2021 2022 2023 2024 2025
Diesel Gallons, by Department and Fiscal Year
Fire Parks Police Public Works and Utilities CDD EDOG
-
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
2019 2020 2021 2022 2023 2024 2025
Renewable Diesel Gallons, by Department and Fiscal Year Fire Parks Police Public Works and Utilities CDD EDOG
63 CLIMATE ACTION BASELINE OVERVIEW
Gasoline Fuel Usage by Department per Fiscal Year
-
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
2019 2020 2021 2022 2023 2024 2025
Gasoline Gallons, by Department and Fiscal Year
Fire Parks Police Public Works and Utilities CDD EDOG
64 GENERAL FUND OVERVIEW
General Fund Operating Budget Overview
FY 25-26 Budget
FY 2023 FY 2024 FY 2025 FY 2026
Actual Actual Revised Budget
Budget
Revenues
Taxes 35,169,269$ 34,890,619$ 34,705,400$ 35,525,500$ Permits and Fees 1,392,042 1,487,665 1,587,100 1,571,700 Fines and Penalties 365,758 416,934 362,900 435,500 Investment Earnings and Rent 916,802 1,510,681 1,081,070 972,300 Intergovernmental 8,722,779 8,754,343 9,384,555 9,920,344 Charges for Services 11,344,429 13,255,991 14,369,418 13,718,820 Other Revenue 290,909 398,635 73,700 218,000 Transfers In 2,197,500 2,435,520 2,819,045 2,615,000 Transfers in from Measure U Sales Tax 9,926,432 14,179,174 13,614,247 14,761,329 Total Revenues 70,325,920$ 77,329,562$ 77,997,435$ 79,738,493$ Funds from Designated Reserve 845,642$ 699,651$ Total Sources 78,843,077$ 80,438,144$
Expenditures/Appropriations
Salaries 30,742,895$ 34,041,031$ 37,922,387$ 38,074,561$ Benefits 20,137,899 21,944,723 24,191,147 26,112,915 Services and Supplies 11,891,932 13,248,536 9,563,852 9,039,178 Utilities 1,313,769 1,452,733 1,434,303 1,453,268 Capital 53,768 303,487 154,004 50,050 Transfers Out 3,184,698 3,881,251 1,407,507 1,751,118 Intragovernmental 2,795,494 4,291,667 4,204,235 3,877,654 Total Expenditures/Appropriations 70,120,455$ 79,163,428$ 78,877,435$ 80,358,744$ Difference 205,465$ (1,833,866)$ (34,358)$ 79,400$ Beginning Working Capital Balance -$ 132,196$ 34,358$ -$ Ending Working Capital Balance * 132,196$ 34,358$ -$ 79,400$
65 GENERAL FUND OVERVIEW
Revenues
Total General Fund revenues in FY 2025-26 are projected to be $80,438,144. This represents a 2.0% increase over FY 2024-25 revised revenues. The chart below shows total General Fund revenues by type.
Tax revenues make up 44.16% of total General Fund revenues. When the transfers in from Measure U Sales Tax are added to the Taxes category, tax revenues make up 62.5% of the overall General Fund revenues. The chart below shows tax revenues by type as a percentage of total tax revenue.
66 GENERAL FUND OVERVIEW
Sales Tax revenue is typically the largest revenue source in the General Fund but is expected to be the second largest source for FY 2025-26. Sales Tax represents 40.34% of General Fund tax revenues and is projected to approximate $14.33 million during FY 2025-26. Sales tax revenues have been adjusted to reflect the most recently updated forecast amount provided by the City’s sales tax consultant. The overall change from the prior year shows a slight increase of $0.13 million or about a 0.9% increase from the FY 2024-25 revised revenue budget. This revenue estimate is based on information provided by the City’s sales tax consultant as well as from local economists and analysis of revenue patterns. Looking forward, slow growth is expected for all sales tax categories with the exception of Transportation, which will likely continue to decline in coming years. The Transportation category includes revenues from fuel sales, which are anticipated to decrease as more consumers switch to hybrid and electric vehicles. The strongest growth categories in the forecast are Construction, Food Products, and General Retail.
Property Tax revenue, usually the second largest individual source of revenue in the General Fund, makes up 42.24% of General Fund tax revenues. FY 2025-26 overall property tax revenues are budgeted at $15.01 million, a 4.2% increase over the FY 2024-25 revised budget. This estimate was developed in conjunction with the Sonoma County Auditor/Controller’s office. The County considers economic factors, Proposition 8 reassessments, median home prices, and the number of property resales in estimating a growth factor for the upcoming year. This also accounts for the growth recognized from the residual payment related to the dissolution of redevelopment that has grown over the last several years as well as development currently occurring. At this time, growth is expected at about 3.6% annually in the out years of the forecast.
Franchise Fee revenues make up $3.59 million or 10.09% of General Fund tax revenues. Franchise Fees overall are expected to remain relatively flat going into the next year. This revenue category is continuing a pattern of slow overall growth over time largely based on the Refuse Rate Index which is estimated around 2-3% annually.
Business License revenues make up approximately 3.60% of General Fund tax revenues. Revenues in this category are estimated to be $1.28 million in FY 2025-26, a 1.4% decrease from the FY 2024-25 budget. This decrease is based on the declines in sales tax observed in FY 2024-25, as business license tax revenues are based on gross sales. We expect this revenue to recover alongside sales tax revenues in the coming years.
Property Transfer Taxes revenues are projected to be $1.33 million during FY 2025-26. This revenue category has declined slightly from prior years as home sales volume as slowed. We remain conservative in this revenue category given the uncertainty in the economy. Revenues are budgeted $0.03 million over FY 2024-25.
Permits and Fees revenue is expected to show slight decline in FY 2025-26. Revenue is projected to be $1.57 million during FY 2025-26. This is a decrease of approximately $0.02 million. This category is expected to recover in later years of the forecast.
Fines and Penalties revenue is expected to be $0.44 million, an increase of 20.0% over the prior year.
This large increase is based on adjusting the budget to match historical growth and anticipated actuals, 67 GENERAL FUND OVERVIEW
and is not based on any expected one-time revenues. Minimal growth is expected in the forecast and is included at 2.0% year over year.
Investment Earnings & Rent are expected to drop in FY 2025-26 as interest rates begin to fall, with a decline of $0.11 million in the FY 2025-26 budget. Recent interest earnings have exceeded expectations due to sharply inclining short-term interest rates, but we do remain conservative given the economy and likelihood of the Fed reducing rates in the future. Growth of approximately 2.0% is included in the out years of the forecast.
Intergovernmental revenues account for funds from other government agencies including federal, state, and local agencies. Revenues in this category are projected to be $9.9 million during FY 2025-26.
The main driver of this increase in this category is Property Tax in Lieu of Motor Vehicle License Fees which grow based on by assessed valuation growth.
Charges for Services revenues are projected to be $13.7 million next fiscal year. This is lower than the FY 2024-25 revised budget of $14.4 million, as the FY 2024-25 amount includes adjustments for Fire strike team reimbursements. These reimbursement amounts are not included in the FY 2025-26 budget as they can vary widely from year-to-year, which causes the FY 2025-26 budget to appear falsely low in comparison. We are expecting growth in our ongoing charges for services.
Transfers in from Transient Occupancy Tax to the General Fund during the upcoming fiscal year will be approximately $2.3 million, slightly lower than the prior year. The City is experiencing strong revenues from tourism and will continue to monitor activity and fund balance in the Transient Occupancy Tax fund and adjust if needed.
Funds transferred in from Measure U will be $14.76 million, an increase of $1.15 million from revised FY 2024-25. This general sales tax provides support to the general fund and the associated ongoing costs of operations. For more information, please see the Measure U Overview section of the Budget.
Funds transferred in from designated reserves will be $0.70 million, a decrease of 0.15 million from revised FY 2024-25.
68 GENERAL FUND OVERVIEW
Expenditures
Overall General Fund expenditures are projected at approximately $80.36 million, an increase of approximately $1.48 million over the FY 2024-25 revised budget. The chart below shows expenditures by type.
Salaries include appropriations for funding 242.17 positions and are expected to be higher by about $0.15 million. This is representative of position allocation changes and expected increases resulting from labor group agreements and position step advancements. This increase is partially offset by lower overtime costs anticipated in the new year due to the removal of one-time strike team deployment overtime directly offset by revenue as well as less overall overtime estimated in the Fire department in the new year. No new positions are proposed to be added in FY 25/26 in the General Fund.
Benefits include appropriations for all benefits offered to City employees such as health, dental and vision coverage, and retirement. Benefits are expected to increase next fiscal year by approximately $1.92 million. This increase is largely related to the labor group agreement and associated increases mentioned above as well as increased retirement costs and health benefits associated with increased rates and employee benefit selection. Also adding to the costs are increases related to ongoing increase in Workers Compensation resulting from the ongoing cost of claims, maintaining reserves to appropriate actuarial reported reserve levels and administering the program.
Services and supplies are appropriations for services and supplies necessary to carry out daily operations and provide services to the community. This expenditure category is decreasing by approximately $0.52 million, the result of a budget balancing strategy requiring a reduction in the services and supplies categories for all General Fund departments. All departments were required to thoroughly analyze costs and where possible, reduce. The total reduction is partially offset by 69 GENERAL FUND OVERVIEW
anticipated increase in fuel costs in the new year and increased costs of ambulance supplies necessary for operations.
Utilities represent electric, gas, water, and wastewater costs in the general fund. Costs have continually increased over the past several years and the expectation is this trend will continue in FY 2025-26 and therefore appropriations have increased by $0.02 million over FY 2024-25.
Capital expenditures are typically budgeted for some capital equipment items; $0.05 million has been budgeted for FY 2025-26 to replace an ADA chair lift at Swim Center.
Transfers out increased by $0.34 million as compared to FY 2024-25. Transfers that continue to be included are transfers to cover storm water costs, the planned payback of the inter-fund loan to the storm drainage impact fee fund and the payment related to the litigation settlement. Also included is the ongoing transfer to the City’s vehicle and equipment replacement fund necessary for the replacement of aging vehicles and for the transition to an electric fleet and ongoing annual lease payments.
Intragovernmental charges are down about $0.33 million due to planned usage of fund balance in the Risk Management fund, thereby reducing costs across all funds to help offset reduced sales tax revenues in the General Fund.
The chart below shows General Fund expenditures by function.
70 GENERAL FUND OVERVIEW
Five-Year Forecast Update
The revised long-term General Fund forecast is located on the following page. Revenue and expenditure assumptions have been updated. Property Tax growth is expected to be about 3.6% annually over the next several years. Sales Tax revenues are increasing slowly, with growth anticipated in the 0.1-1.1% range annually over the next several years. Expenditures have been updated and continue to include employee COLA and step increase assumptions. Other personnel costs will increase significantly over the duration of the forecast due mainly to continued benefit-related cost increases. The PERS Unfunded Actuarial Liability (UAL) is projected to increase significantly over the next several years, peaking in FY31 at 35% higher than FY25. The payment will then begin to slowly decline, with a 25% decrease anticipated in FY37. This nondiscretionary annual payment will greatly impact the General Fund and other funds that support personnel costs over the next decade and requires careful fiscal planning.
Resources coming in from the Measure U fund and the Transient Occupancy Tax fund are estimated to provide sufficient funding for supporting workforce stabilization costs long-term and will serve to bolster existing programs and services, and ensure that budget cuts, layoffs or other service reductions are avoided. The unassigned fund balance is anticipated to remain between $0 and $400,000 for the remainder of the forecast, as the forecast shows a balanced budget with revenues just above expenditures. As a reminder, Measure U funds provide resources to the General Fund to support continuity of essential services. As changes to General Fund revenues and expenditures occur throughout the fiscal year, the associated transfer into the General Fund from Measure U will be adjusted and the resulting impacts on overall fund balance will be presented in the Measure U fund (see Measure U Fund Overview for more information). Staff will continue to monitor financial results and bring forward any adjustments deemed necessary in conjunction with quarterly budget adjustments.
Assigned reserves are excluded from the Unassigned Fund Balance above as they have been committed or reserved by either Council Policy or Council Action. As of June 30, 2025, an estimated $14.6 million is maintained separate from the Unassigned (operating) reserve. Approximately $14.1 million of this balance is reserved for emergencies and currently amounts to approximately 19% of the General Fund operating budget. As one-time revenues are received, or additional unexpected savings occur, funds will continue to be reserved, built up and maintained at the Council’s minimum 15% target or until City Council policy changes.
It is critical to maintain existing reserves and to continue building reserves to meet the minimum target.
Reserves provide agencies flexibility when responding to emergencies or natural disasters as well as economic factors such as a downturn in the economy or volatility in revenues or expenditures. City Council policy states that whenever possible, to build reserves with one-time revenues as well as any unanticipated savings. As you may recall, the City relied on reserves during the great recession, which allowed the City to adjust while still maintaining an acceptable level of service to the Community.
It is important to note that the amounts contained in the forecast are estimates. While a “most likely” estimate has been presented, the amounts will change based on new updated information. Revenue generation options will continue to be evaluated including a robust strategy that will preserve economic 71 GENERAL FUND OVERVIEW
development opportunities. The forecast presented here, along with future updates, will provide financial perspective as we progress into the future.
Revised Budget Forecast Forecast Forecast Forecast Forecast Revenue Categories 2025 2026 2027 2028 2029 2030 2031
Property Taxes 14,393,500 15,005,100 15,643,000 16,308,000 17,001,000 17,723,000 18,476,228 Sales and Use Taxes 14,199,700 14,330,000 14,539,000 14,704,000 14,826,000 14,898,000 14,925,000 Business License Tax 1,297,200 1,279,000 1,367,370 1,408,391 1,450,643 1,494,162 1,538,987 Property Transfer Tax 1,300,000 1,326,000 1,365,780 1,406,753 1,448,956 1,492,425 1,537,198 Franchise Fees 3,515,000 3,585,400 3,692,962 3,803,751 3,917,864 4,035,400 4,156,462 Permits and Fees 1,587,100 1,571,700 1,618,851 1,667,417 1,717,440 1,768,963 1,822,032 Fines and Penalties 362,900 435,500 444,210 453,094 462,156 471,399 480,827 Investment Earnings and Rent 1,081,070 972,300 1,001,469 1,031,513 1,062,458 1,094,332 1,127,162 Intergovernmental Revenues 9,384,555 9,920,344 10,267,556 10,626,920 10,998,862 11,383,822 11,782,256 Charges for Services 14,369,418 13,718,820 14,130,385 14,554,297 14,990,926 15,440,654 15,903,874 Other Revenues 73,700 218,000 235,540 242,606 249,884 257,381 265,102 Transfers from Transient Occupancy Tax 2,339,045 2,350,000 2,350,000 3,800,000 3,800,000 4,350,000 4,350,000 Transfers from Measure U Sales Tax Fund 13,614,247 14,761,329 16,007,783 15,907,763 17,902,217 18,732,734 17,340,021 Other Transfers and Sources 1,325,642 964,650 715,000 715,000 715,000 715,000 715,000 Total Revenues 78,843,077 80,438,143 83,378,906 86,629,505 90,543,406 93,857,272 94,420,148 Expenditure Categories
Salaries and Wages 37,922,387 38,074,561 39,410,717 40,792,799 42,223,252 43,703,771 43,711,617 Benefits 24,191,147 26,112,915 27,682,220 29,028,440 30,995,239 32,294,064 32,296,055 Services & Supplies 9,563,852 9,039,178 8,978,853 9,248,219 9,525,666 9,811,436 10,105,779 Utilities 1,434,303 1,453,268 1,525,931 1,602,228 1,682,339 1,766,456 1,854,779 Intragovernmental 4,204,235 3,877,654 4,313,372 4,464,340 4,620,592 4,782,313 4,949,694 Fixed Assets & Cap. Outlay 154,004 50,050 51,051 52,072 53,113 54,175 55,259 Storm w ater transfer 622,053 622,053 622,053 622,053 622,053 622,053 622,053 Transfers Out 785,454 1,129,065 759,414 759,414 759,414 759,414 759,414 Total Expenditures 78,877,435 80,358,744 83,343,611 86,569,565 90,481,668 93,793,682 94,354,650 Rev. Over (Under) Exp. (34,358) 79,400 35,295 59,940 61,738 63,590 65,498 Total Unassigned Bal. Beg. of Yr 34,358 - 79,400 114,695 174,635 236,373 299,963 Total Unassigned Bal. End of Yr - 79,400 114,695 174,635 236,373 299,963 365,461 General Fund Long Term Operating Forecast
72 MEASURE U FUND OVERVIEW
Measure U Fund Overview
Beginning in 2019, the City commenced a concerted, two-pronged community engagement effort to address the City’s long-term fiscal and organization sustainability (FOS) by gathering as much community feedback as possible from all 60k+ residents about City services and priorities. In response to the City’s outreach efforts, Petaluma community members identified priorities for enhanced locally controlled funding:
o Emergency health/wildfire/natural disaster preparedness; o Rapid 911 emergency response;
o Fire protection services;
o Continuing homelessness prevention;
o Retaining well-trained community police officers;
o Streets/pothole repair;
o Clean/safe public areas;
o Support for local businesses/jobs and other city services This general transaction and use tax measure known as the City of Petaluma Local Recovery, Emergency Preparedness and Essential Services Measure was approved by Petaluma voters and went into effect April 1, 2021.
The primary function of Measure U is to maintain essential services. Prior to the passage of Measure U, the City of Petaluma faced significant reduction in services, under-funding of long-term obligations, and growing expenses. Since its passage, revenues generated have allowed the City to provide for the continuity of services by restoring and maintaining priority service levels, strategically investing in high- priority areas and building and maintaining emergency reserves as a safeguard for the future – while still achieving a balanced budget. With Measure U, we are a more fiscally sustainable organization with a cutting-edge workforce that is prepared to address the community’s needs. We have been able to leverage Measure U resources to maximize its impact for the community in various ways, from creating successful programs addressing homelessness to large-scale complex capital projects such as street rehabilitation and reconstruction, dredging, turning basin dock replacement, baseball field, and so much more.
Below is a dashboard snapshot of fiscal investment since inception, across the various budgeted General Fund categories that are supported, directly and/or indirectly, by Measure U:
Category Continued Investment
Police
Fire
Parks, Facilities and Recreation
Public Works
Community Development
Economic Development and Open Government
All Other General Fund Departments
Investment in Reserves
Restored/enhanced level of services Enhanced/more work to do 73 MEASURE U FUND OVERVIEW
Measure U Community Benefits and Investments Continued into New Fiscal Year
Measure U has transformed our City in many ways. Below is a summary, touching on only a few of the many investments citywide that will continue into the new year.
Maintain and restore essential services by category:
• Cost of doing business increases
o Economy – inflation
• Specialized police and fire services
o Workforce Stabilization
o Specialized compensation for professional skills
o Ongoing investment in capital equipment
o Investment in facilities to meet operational needs
o SAFE Team Mobile Crisis Intervention
o Improved response times
• Park Maintenance
o Workforce Stabilization
o Increased routine maintenance
o Specialized Services
▪ Animal Grazing
▪ Gopher Abatement
▪ Organic Weed Abatement
o Investment in modern equipment
o Capital Projects – Baseball Field, Skate Park, Playground Equip, etc. • Facility Investment
o Modernize City Hall to meet today’s needs – upgrade City Council Chambers, Permit Center, office spaces
o Increase proactive maintenance when possible
• Public Works Road Improvement City-wide
o $20m investment in roads city-wide – reconstruction and/or rehabilitation o Workforce Stabilization
o Increased frequency and pace of routine road repair and ongoing maintenance city-wide o Additional investment planned
• Community Development
o Programs addressing homelessness, addiction and services o Planning policy initiatives
• Emergency Reserves
o Maintain minimum reserve level of 15% of Expenditures
General Fund Department Data
The primary objective of Measure U is to ensure the continuity of services for residents. This is demonstrated by the level of investment in the General Fund operating departments. The City seeks to keep pace with growth while maintaining a high level of service and meeting the needs of the community. Measure U is one revenue source of several in the General Fund, and it is essential for 74 MEASURE U FUND OVERVIEW
service delivery. Without it, severe cuts to basic life and safety services would be needed to produce a balanced budget. Like a business, a city needs resources, planning, and a focus on its “customers” (residents) to thrive, requiring careful management and investment in infrastructure, services and community well-being. While Measure U is a vital source of revenue for the City to fund essential services, it is not a panacea for all City needs. More work is needed to ensure services, facilities, roads and infrastructure are well funded and in turn well maintained into the future.
Below are General Fund revenues by type including how much Measure U contributes to the overall General Fund, followed by expenditures and staffing by function.
FY 2025-26 Measure U Summary
Ongoing investment in staffing to support delivery of essential services, infrastructure investment and priority programs and projects will continue in the new year. The City’s General Fund-funded workforce Revised Budget Proposed Budget
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Taxes 31,554,766 36,400,333 35,169,269 34,890,619 34,705,400 35,525,500 Permits and Fees 1,671,811 1,338,219 1,392,042 1,487,665 1,587,100 1,571,700 Fines and Penalties 161,927 332,852 365,758 416,934 362,900 435,500 Investment Earnings and Rent 129,921 218,003 916,802 1,510,681 1,081,070 972,300 Intergovernmental 7,926,108 7,264,793 8,722,779 8,754,343 9,384,555 9,920,344 Charges for Services 9,582,790 10,228,548 11,344,429 13,255,991 14,369,418 13,718,820 Other Revenue 294,708 85,070 290,909 398,635 73,700 218,000 Measure U Sales Tax - 7,419,248 9,926,432 14,179,174 13,614,247 14,761,329 Transfers In 3,435,500 2,548,300 2,197,500 2,435,520 2,819,045 2,615,000 Total 54,757,531 65,835,366 70,325,920 77,329,562 77,997,435 79,738,493 General Fund Categories - Revenues Actuals
Revised Budget Proposed Budget
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Police 21,509,823 24,328,718 26,235,586 29,069,722 29,465,949 30,814,610 Fire 18,829,188 21,088,145 21,885,799 24,408,005 25,707,701 25,289,659 Parks, Facilities and Recreation 4,074,517 4,880,302 5,947,967 7,033,116 7,087,314 6,830,920 Public Works 1,716,351 2,040,873 2,379,232 2,848,145 2,608,323 3,040,473 Community Development 1,225,639 1,309,158 1,568,083 1,810,738 1,796,605 2,056,623 Economic Development and Open Government 657,375 1,363,031 1,164,032 1,113,054 791,505 715,222 All other General Fund Departments 8,783,958 9,787,698 10,939,756 12,833,235 11,420,038 11,611,237 Total 56,796,851 64,797,925 70,120,455 79,116,015 78,877,435 80,358,744 ActualsGeneral Fund Categories- Expenditures Investment Revised Budget Proposed Budget
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Police 93.65 99.15 99.60 100.60 100.60 100.60 Fire 64.00 67.00 66.30 68.30 68.30 68.30 Parks and Recreation 17.80 18.00 19.00 21.30 24.20 24.20 Public Works 6.50 6.50 6.50 7.42 8.90 9.55 Community Development - - 0.55 1.21 1.76 3.80 Economic Development and Open Government 1.50 1.50 1.50 2.50 2.50 2.50 All other General Fund Departments 29.80 33.30 33.30 33.30 34.30 34.30 Total 213.25 225.45 226.75 234.63 240.56 243.25 General Fund Categories - Staffing Actuals Investment
75 MEASURE U FUND OVERVIEW
was reduced significantly in response to the Great Recession and when Measure U was adopted the workforce was approximately 16% below pre-recession levels.
Since the implementation of Measure U, the City has bolstered its staffing, which has boosted the City’s ability to provide the services that our residents and visitors need and expect. Retaining employees is critical, and maintaining compensation at or near market rate significantly aids in making the City a strong competitor in the job market, allowing for both recruitment and retention of highly qualified staff. We are a people-powered organization with staff behind every service delivered to the community, which is why approximately 80% of our total annual costs are comprised of salary/benefits for City employees.
Infrastructure Investment will continue into the new year. Major road rehabilitation and reconstruction has taken place all throughout the City since the passage of Measure U. The City issued Lease Revenue Bonds to raise $20m of liquidity following the passage, providing the necessary resources to jump-start addressing much needed road repairs. A planned future bond issue will continue this effort over the next 5 -10 years. The FOS process identified significant gaps that currently exist in Petaluma’s infrastructure investment. This includes more than $100 million in deferred road maintenance which has been only partially addressed thanks to Measure U; dozens of City-owned buildings that are badly in need of major refurbishment; and many other infrastructure categories that require significant annual investment that the City has not performed for decades. Additionally, Measure U funds individual CIP projects each fiscal year as funding allows, to provide continued investment across the City. From FY 2020-21 through FY 2024-25, $18.1 million was spent on Infrastructure from Measure U, plus an additional $11.4 million from the bond measure. The FY 2025-26 budget sets aside another $0.4 million from Measure U for City infrastructure projects and bond debt service.
Ongoing investment will continue for new priority programs, initiatives, or one-time projects which have been identified as Council and community priorities. From FY 2020-21 through FY 2024-25, $4.2 million has been spent on projects addressing homelessness, climate change, emergency preparedness, and piloting a fare-free public transit program. Looking forward over the next few years, as more resources are shifted to support the continuity of essential services, less Measure U funding will be available for these types of projects. However, these projects can be funded using other City sources, and some could potentially be absorbed within the General Fund. The long-term forecast is updated twice per year, and updates will be brought forward to the Council and community as new information is known. The FY 2025-26 budget includes $0.65 million for the Sidewalk Repair Program and Turf Field Replacement at Lucchesi.
The Measure U Committee reviews the fiscal year end results as well as the upcoming proposed appropriations annually. The Committee reviewed the proposed FY 25-26 Measure U budget on April 17, 2025. The Committee understands and agrees that the use of Measure U funds is in alignment with the intended uses. However, the committee did express concern at the growing support for the General Fund in the long-term forecast and how that would impact the availability of Measure U funds for priority initiatives in the near future. All Committee reports can be found at cityofpetaluma.org/meetings. The next report for FYE 2024-25 will be available and presented to the Committee in January of 2026.
76 MEASURE U FUND OVERVIEW
2025-26 Revenues
Measure U sales tax revenues are estimated at $15.71 million for FY 25-26, greater than the prior year by approximately 1%. We expect moderate growth to continue into the new fiscal year. This sales tax is a district tax which means 100% of the amount collected is kept locally and is available to spend on the many needs citywide.
2025-26 Expenditures
A Measure U budget of $ 15,708,000 is recommended for 2025-26. Funds are transferred out to the applicable fund where the costs reside. This is representative of a full year of sales tax revenue programmed to cover the various costs in the themed categories shown below.
Measure U provides additional resources to maintain and bolster existing service levels. For many years, the City has relied on the General Fund 5-year forecast which has proven to be accurate and assisted with long-term planning. The forecast has continued to show the need for more resources as costs escalate and demand increases. Thus, a significant portion of Measure U funds will serve to bolster existing programs and services and ensure that additional budget cuts or service reductions are avoided.
The General Fund Support category includes workforce stabilization, which is essential for delivering services to the Community. Rebuilding, stabilizing, and improving the City workforce through the initiatives will improve City services. This is vital to be successful in initiating new programs and projects in the community. New positions to maintain service levels and meet rising demand are essential to the sustainability of the city in the long term. In addition to core staffing, providing classification and compensation comparable to market and neighboring agencies as well as providing for annual cost of living adjustments ensures the City can successfully recruit and retain highly qualified staff.
Infrastructure investments provide the resources necessary to jump-start the road maintenance and reconstruction program that is significantly needed in Petaluma. The City successfully issued $20m of bonds to front-load the road maintenance effort. Funding the program up front provided the resources necessary to improve City streets immediately and have the most positive impact on PCI, preventing further deterioration of City streets and additional increased costs to repair.
Finally, priority initiatives include $366,671 of funding for future debt service and fare-free public transit, along with $650,000 for the Sidewalk Repair Program and Turf Field Replacement at Lucchesi.
Revenue and Expenditure Summaries, by fund, showing changes from prior year budget to current year budget, are shown below for reference.
Measure U Fund Revenues – Changes from Prior Year to Current Year
Measure U Fund FY 2025 Revised Revenues FY 2026 Revenues $ Change % Change Measure U Sales Tax 15,615,000$ 15,708,000$ 93,000$ 1% Total Measure U Fund 15,615,000$ 15,708,000$ 93,000$ 1% 77 MEASURE U FUND OVERVIEW
Measure U Fund Expenditures – Changes from Prior Year to Current Year
Measure U is essential for day-to-day operations of the City. Critical services such as public safety are partially funded by Measure U. As the General Fund depends on this revenue source for continuing operations, a five-year forecast is shown below. Like the forecast presented for the General Fund, this forecast will assist with proactive long-term financial planning. It is expected that funds provided by Measure U will be sufficient to maintain and bolster existing programs and services and ensure that additional budget cuts are avoided, provide ongoing workforce stabilization, increase infrastructure investments, and cover associated debt service and provide funding for future priority initiatives. An estimated $68,299 is projected at the end of FY 2024-25 and declines to $0 in FY 2025-26. Any fund balance is used by the end of the 5-year forecast as shown below.
Measure U Fund FY 2025 Revised Budget FY 2026 Budget $ Change % Change Transfers Out 15,683,299$ 15,708,000$ 24,701$ 0% Total Measure U Fund 15,683,299$ 15,708,000$ 24,701$ 0% Revised Budget Forecast Forecast Forecast Forecast Forecast Revenue Categories 2025 2026 2027 2028 2029 2030 2031
Sales and Use Taxes 15,615,000 15,708,000 16,088,000 16,444,000 16,766,000 17,047,000 17,394,000 Use of Reserve Funds - 519,763 1,685,734 Total Revenues 15,615,000$ 15,708,000$ 16,088,000$ 16,444,000$ 17,285,763$ 18,732,734$ 17,394,000$ Expenditure Categories
General Fund Support - Maintain Service Level 13,614,247 14,691,329 16,007,783 15,907,763 17,902,217 18,732,734 17,340,021 Infrastructure Investment and Priority Initiatives 2,069,052 1,016,671 Total Expenditures 15,683,299$ 15,708,000$ 16,007,783$ 15,907,763$ 17,902,217$ 18,732,734$ 17,394,000$ Rev. Over (Under) Exp. (68,299)$ -$ 80,217$ 536,237$ (616,454)$ -$ -$ Beginning Fund Balance 68,299$ 0$ 0$ 80,217$ 616,454$ 0$ 0$ Ending Fund Balance - $ 0$ 80,217$ 616,454$ 0$ 0$ 0$ Measure U Long Term Operating Forecast
78 SPECIAL REVENUE FUNDS OVERVIEW
Special Revenue Funds Overview
Special Revenue Funds have revenues with either restrictions on their use or special reporting requirements, such as development impact fees for parks, city facilities, public facilities, and transportation; gas tax revenues from the state; housing fees assessed on commercial and industrial projects; in-lieu fees for the City’s Below Market Rate (BMR) housing program; Community Development Block Grants (CDBG) from the federal government; Grant funds awarded for specific projects or programs; Transient Occupancy Tax collected from visitors staying at local hotels; Trust funds designated for a specific purpose and other special revenues intended to cover a designated cost.
Revenues
The total budgeted revenues of the Special Revenue and Trust Funds for FY 2026 is $ 25.6 million which is $8 million or 24 percent, lower than FY 2025. This overall decrease is largely due to a decrease in development impact fees and grant revenues in FY 2026.
Expenditures
The total budgeted expenditures of the Special Revenue funds for FY 2026 are $44.1 million, which is a $12 million increase, or 37 percent higher than FY 2025. The primary drivers of this increase are increased transfers out of Impact Fees to Capital Improvement Projects, increased grant activity, offset by decreased housing program activity. Both the funding and expenditures for the continued operation of the SAFE team is included in the Police Grants fund.
Reserves
The financial revenue and expense forecasts are estimates at a single point in time. Any remaining reserves in this category are held in the fund until used for the specific capital project or specified program.
Note- Available reserves for the Special Revenue funds can be found on the Fund Summary located in the Summary Schedules section of this document.
Special Revenue Funds
Development Impact Fee Funds
Revenues in this category come from new development activity that generates development impact fees and is used to fund City infrastructure such as parks, city facilities and transportation improvements. The projected revenue in the Development Impact Fee funds is $1.4 million for FY 2026, $5.6 million less than the prior year, primarily reflecting a decrease in receipts from anticipated development activity in the coming year. Impact Fees are largely used to fund capital projects and therefore FY 2026 Capital Improvement Plan includes transfers of $5.9 million from the City Facility Impact Fee Fund, $2.1 million from the Storm Drain Impact Fee Fund and $4.2 million from the Traffic Mitigation Impact Fee Fund. Fees collected in the current year and not used are reserved for future capital improvements, as can be seen in the Capital Improvement Plan section of this document which 79 SPECIAL REVENUE FUNDS OVERVIEW
includes future estimated transfers of $17.9 million from the City Facilities Impact Fees Fund as well as an additional $40.7 million from Traffic Mitigation Impact Fees to fund future project costs.
Annually, the Finance Department issues a report of the activities in these funds including the remaining balances within them. The 2024 AB1600 annual report ending June 30, 2024, is available on the City’s website at CityofPetaluma.org under the Financial Documents section of the Finance Page.
Public Art Fund
Revenues in this category come from new development activity that generates fees and is used to fund art in public places and within public view. The public art program encourages the use of art to celebrate the City’s rich history, its significant environmental assets and the diversity of its community as well as to salute creativity, innovation and artistic excellence.
Street Funds
The Street Funds consist of the HUT (Gas Tax) Fund and the Street Maintenance Fund. Revenue in this category comes from the state gas tax including estimated receipts from S.B.1 transportation funds and from federal and state funds earmarked for street improvements as well as vehicle impact fees. These funds are used for transportation and traffic-related capital projects.
Based on preliminary estimates from the State Department of Finance, the projected Gas Tax revenues are estimated to be $3.3 million for FY 2026. This is comprised of $1.7 million from gas tax and $1.6 million from Road Maintenance and Rehabilitation Account (S.B.1). This level of receipts remains relatively constant when compared to the prior year and includes adjustments to Highway Users Tax Account (HUTA) allocations and the S.B. 1. Other revenues such as garbage franchise fees and Go Sonoma (previously measure m streets) funding comprise another $2.7m of street funding available for operational costs and capital improvements. In FY 2026, $4 million is programmed to be transferred to the Capital Improvement Fund for various citywide transportation projects that include projects for bridge and pavement restoration. The Gas Tax revenues are required to be tracked in a separate fund and are transferred to the Street maintenance Fund to fund allowable projects. The majority of funding for street improvements citywide is funded by Measure U sales tax the road bond issued in FY 21/22.
This bond issue provided the upfront capital needed to jumpstart road improvements all throughout Petaluma.
Transient Occupancy Tax Fund
This fund is used to account for the tax collected from travelers who stay in temporary lodging facilities within the City. This tax was established by ordinance and funds collected are to be used according to the guidelines within the ordinance. It is estimated that $3.7m will be collected during FY 2026 of which $2.3m transferred to the General Fund for support of city services and the remainder of $1.1m will be used for capital projects, purchases and programs with ongoing funding support for community events such as Butter and Eggs and Veterans’ Parade.
80 SPECIAL REVENUE FUNDS OVERVIEW
Housing Funds
This category of funds includes revenues received from development activity such as Housing-in-Lieu and Commercial Linkage fees which are required of commercial, industrial, and residential developers.
These fees are used to provide housing for the City’s Housing Program. This fund category also includes funding from the Federal government for the Community Development Block Grant (CDBG) program which provides funds to expand and maintain affordable housing supply, promote housing opportunities, improve and maintain community facilities, and increase economic opportunities for persons of low and moderate income. Also included in this category are revenues and activity from the Permanent Local Housing Authority (PLHA) providing significant funding for the Home First program as well as activity related to the Federal HOME Grant program, mobile home rent program and housing successor activity. Total FY 2026 revenues are estimated at $2 million. A total of $2.9 million, including revenues and fund reserves will be provided as financial assistance of various active housing programs and the overall administration of these activities.
Measure M Parks Fund
This fund is used to account for the voter approved 1/8 cent sales tax that supports the Sonoma County regional park system. The funding is allocated among all Sonoma County cities and Petaluma is expected to receive $875,700 in FY 2026. Community Outreach has been an integral part of the process and public input has been robust and is represented in the various priority categories of spending. The FY 26 investments include funding for park access improvements, maintenance, parks, playgrounds, Lucchesi Turf Field Replacement, Swim Center Facility Assessment and Remodel and Lucchesi Skate Park. Funding for parks turf maintenance, special events and programs is also included. Community input will continue to guide the spending plan into the future.
Grant Funds
This fund accounts for all Governmental Grant funds for various purposes.
Public Safety Special Revenue Funds
These funds are used to account for grant, fines and fees associated with public safety programs. Many of these programs are mandated by either the State or Federal Government. The funding and expenditures associated with the City’s SAFE (Specialized Assistance for Everyone) program continues to be included in the Police Grant fund and is estimated to be entirely funded by grants in the coming year.
Trust Funds
This fund grouping is used to account for funds donated to the City. Funds included in this category are generally restricted for those uses specified within the Trust.
Tourism Improvement District
This fund reports the receipts from the Petaluma Downtown Tourism Improvement District Tax and disbursements from the fund. The Petaluma Downtown Tourism District collects tax from hotels and lodging establishments in the district and pays a portion of this to the City to benefit the district. 81 SPECIAL REVENUE FUNDS OVERVIEW
Landscape Assessment District
This fund is used to account for activity in the landscape assessment districts maintained by the City.
These districts collect funds from the property owners and use the funds to maintain common landscape areas within the boundaries of the district.
Donations
This fund is used to account for miscellaneous donations provided to the City.
Fairgrounds
The Fairgrounds Fund accounts for revenues taken in from fairgrounds events and property management activities as well as associated expenditures. The prior long-term lease of this 55- acre property to the State expired and the City regained control of the property beginning January 1, 2024. Since then, the City has enhanced access and expanded community programing and special events at the Fairgrounds as well as addressing deferred maintenance Special Revenue Fund Revenues – Changes from Prior Year to Current Year
Special Revenue Funds
FY 2025
Revenues
FY 2026
Revenues $ Change % Change
Development Impact Fee 7,036,041$ 1,360,811$ (5,675,230)$ -81% Streets 9,756,745 10,246,946 490,201 5% Transient Occupancy Tax 4,043,677 3,680,885 (362,792) -9.0% Housing 3,356,092 2,000,241 (1,355,851) -40% Measure M Parks Tax 952,783 877,468 (75,315) -8% Grants 5,033,698 4,888,140 (145,558) -3% Public Safety Special Revenue 263,528 306,370 42,842 16% Trust 5,963 4,996 (967) -16% Tourism Improvement District 150,856 141,109 (9,747) -6% Landscape Assessment District 519,841 668,526 148,685 29% Donations - - - 0% Fairgrounds 570,358 1,424,000 853,642 100% Total Special Revenue Funds 31,689,580$ 25,599,492$ (6,090,090)$ -19% 82 SPECIAL REVENUE FUNDS OVERVIEW
Special Revenue Fund Expenditures – Changes from Prior Year to Current Year
Special Revenue Fund Revenues – FY 2026 Revenues by Fund and Account Type
Special Revenue Funds
FY 2025 Revised
Budget
FY 2026
Budget $ Change % Change
Development Impact Fee 5,437,224$ 13,097,594$ 7,660,370$ 141% Streets 9,246,965 13,318,346 4,071,381 44% Transient Occupancy Tax 4,295,267 3,776,475 (518,792) -12% Housing 4,958,418 2,867,308 (2,091,110) -42% Measure M Parks Tax 1,040,679 924,026 (116,653) -11% Grants 5,076,357 7,012,354 1,935,997 38% Public Safety Special Revenue 331,829 529,092 197,263 59% Trust 532,000 - (532,000) -100% Tourism Improvement District 184,700 304,910 120,210 65% Landscape Assessment District 505,901 733,377 227,476 44.96% Donations 200 974 774 387% Fairgrounds 570,502 1,577,473 1,006,971 177% Total Special Revenue Funds 32,180,042$ 44,141,929$ 11,961,887$ 37% Special Revenue Funds Taxes Licenses, permits
and fees
Intergovernmental/
grants
Investment
earnings and
rent
Donations/
Other Transfers In Total
Impact Fee Funds - $ 108,084$ -$ 902,727$ 350,000 $ - $ 1,360,811$ Street Funds 3,268,521 $1,564,469 $1,092,715 60,871 - 4,260,370 10,246,946 Transient Occupancy Tax 3,676,856 4,029 3,680,885 Housing Funds 537,025 432,338 92,946 $56,000 881,932 2,000,241 Measure M Parks Tax 875,700 $1,768 877,468
Grant Funds 4,888,140 $0 4,888,140
Public Safety Special Revenue Funds 295,000 11,370 306,370 Trust Funds 4,996 4,996
Other Special Revenue Funds 720,000 837,788 675,847 2,233,635 Total Special Revenue Funds 7,821,077$ 2,929,578$ 6,708,193$ 1,916,495$ 1,081,847 $ 5,142,302$ 25,599,492$ 83 SPECIAL REVENUE FUNDS OVERVIEW
Special Revenue Fund Expenditures – FY 2026 Expenditures by Fund and Account Type
Special Revenue Funds Salaries and
Benefits
Services and
Supplies Utilities Intragovern
mental Capital Transfers
Out Total
Impact Fee Funds -$ - $ - $ 565,194 $ - $ 12,532,400 $ 13,097,594$ Street Funds 3,398,700 1,890,110 369,799 $416,797 $0 7,242,940 13,318,346 Transient Occupancy Tax 175,000 $172,781 3,428,694 3,776,475 Housing Funds 461,927 1,181,853 $0 304,326 $0 919,202 2,867,308 Measure M Parks Tax 123,434 191,000 18,399 591,193 924,026 Grant Funds 147,747 $3,354,607 $0 3,510,000 7,012,354 Public Safety Special Revenue 152,114 93,000 14,608 269,370 529,092 Trust Funds - -
Other Special Revenue Funds 433,836 1,779,266 - 69,662 333,970 2,616,734 Total Special Revenue Funds 4,717,758$ 8,664,836$ 369,799$ 1,561,767$ - $ 28,827,769 $ 44,141,929$ 84 ENTERPRISE FUNDS OVERVIEW
Enterprise Funds Overview
Enterprise Funds are used to account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user fees and charges. Each enterprise covers its cost of providing service and generates reserves for various contingences. Enterprise fund revenues cannot be used for any city purpose not benefiting the enterprise.
The City of Petaluma is a full-service city and includes operations that are comprised of overseeing and managing a Municipal Airport, Marina and Transit operation. This City also operates a Community Development Services enterprise which oversees all local building safety and code requirements as well as coordinates all inspections and issues building permits.
Revenues
The total budgeted revenues of the Enterprise Funds for FY 2026 are $19.6 million, which is $4.6 million or 31 percent higher than FY 2025. This overall increase is mainly due to higher intergovernmental revenue. The Airport fund is expecting federal grant funding for Taxiway A and Taxilane B; and Transit anticipates federal funds for paratransit bus replacements in addition to new buses. The FY 2026 increased revenue is also related to more development activity driving up associated fee revenues in the Development fund.
Expenditures
The total budgeted expenditures of the Enterprise funds for FY 2026 are $18.9 million, which is just about a million or 6% percent higher than FY 2025. Appropriations are included for salary and benefit costs of existing staff as well as salary increases and other operating services and supplies. The increase is mainly due to the Airport Fund’s transfers out to the Taxiway A and Taxilane B projects.
Fees
User Fees are updated annually on July 1st. Fees are set by resolution and require Council approval. In general, fees are adjusted annually by the Consumer Price Index (CPI). Approximately every 5 years, a fee study is conducted to ensure the fee is representative of the cost of providing the service.
Reserves
The financial revenue and expense forecasts are estimates at a single point in time. Reserves serve as balancing accounts which mitigate the risk of fee swings from year to year. Reserves are used to provide cash for replacement costs during an emergency infrastructure failure or serve as temporary parking for planned capital and operating expenditures.
Note- Available reserves for the Enterprise funds can be found on the Fund Summary located in the Summary Schedules section of this document.
85 ENTERPRISE FUNDS OVERVIEW
Enterprise Funds
Municipal Airport
This fund accounts for the daily operation and maintenance of the Petaluma Airport. The fund manages 167 City owned aircraft storage hangars, 2 commercial business hangars, 4 executive hangars, 22 private hangars and 118 tie-down spaces for a total capacity of 240 aircraft. The airport also supports an automated weather observation system and a ground communication outlet as well as provides self- service fueling 24/7. It is estimated that $2m will be generated mainly by fees and fuel sales collected from the rental of hangars and property and self-service fueling as well as earned interest revenue; and $4.6m will come from grant and property tax revenue. All of which (along with prior reserves and grants) will be used to support operations, taxiway projects, and hangar maintenance and repairs.
Development Services
This fund accounts for cost recovery services, including building services, development services and planning services provided to developers, where fees charged are required to cover costs of providing services. FY 2026 revenues are estimated at $2.67m, which will be used to support the cost of operations.
Marina
This fund accounts for the daily operation and maintenance of the Petaluma Marina, structural and equipment improvements, and planning and implementing promotional campaigns. The Petaluma Marina has 167 berths and offers gasoline and diesel fuel sales for maritime vessels. The Marina fund is expecting to receive $221k of revenues of which $444k will be used to support the cost of operations and programs. The Marina has continually operated with a deficit of approximately $.15-$.20m annually.
Transit
This fund is used to account for the operation of City’s transit services. The Transit division consists of City staff and a contracted transit operator that manage a fleet of buses operating 7 days a week on various routes. FY 2026 revenues are estimated at $10m, of which the entirety will be used to support the cost of operations, capital projects and programs, and the acquisition of buses.
86 ENTERPRISE FUNDS OVERVIEW
Charts – Revenue and Expenditure Summary, by fund, change from prior year budget to current year budget and current year revenues and expenditures by fund type and by account type, are shown below for reference.
Enterprise Fund Revenues – Changes from Prior Year to Current Year
Enterprise Fund Expenditures – Changes from Prior Year to Current Year
Enterprise Fund Revenues – FY 2026 Revenues by Fund and Account Type
Enterprise Fund Expenditures – FY 2026 Expenditures by Fund and Account Type
Enterprise Funds
FY 2025
Revenues
FY 2026
Revenues $ Change % Change
Airport 2,384,533$ 6,676,395$ 4,291,862 $ 180% Development Services 2,500,544 2,675,992 175,448 7% Marina 253,500 221,600 (31,900) -13% Transit 9,872,585 10,046,153 173,568 2% Total Enterprise Funds 15,011,162$ 19,620,140$ 4,608,978 $ 31% Enterprise Funds
FY 2025 Revised
Budget FY 2026 Budget $ Change % Change
Airport 2,851,166$ 5,158,676$ 2,307,510 $ 81% Development Services 3,292,054 3,046,660 (245,394) -7% Marina 438,152 444,853 6,701 2% Transit 11,360,454 10,286,001 (1,074,453) -9% Total Enterprise Funds 17,941,826$ 18,936,190$ 994,364 $ 6% FY 2026 Enterprise Fund
Revenues Airport
Development
Services Marina Transit Total
Taxes $170,000 170,000$
Licenses, Permits and Fees 9,000 2,601,090 18,600 2,628,690 Charges for Sales 800,600 5,000 60,000 865,600 Charges for Services - 43,500 43,500 Intergovernmental 4,439,690 9,755,562 14,195,252 Investment earnings and Rent 1,257,105 31,402 198,000 50,591 1,537,098 Transfers In 180,000 180,000
Total Enterprise Funds 6,676,395$ 2,675,992$ 221,600 $ 10,046,153$ 19,620,140$ FY 2026 Enterprise Fund
Expenditures Airport
Development
Services Marina Transit Total
Salaries and Benefits $534,691 $1,742,904 $135,666 $1,059,229 3,472,490 $ Services and Supplies 731,250 580,664 57,550 3,793,914 5,163,378$ Utilities 39,000 61,015 56,000 36,600 192,615$ Intragovernmental 253,511 629,277 121,237 418,223 1,422,248$ Capital 200,000 - - 4,841,835 5,041,835$ Debt Service 517,924 - - - 517,924$ Transfers Out 2,882,300 32,800 74,400 136,200 3,125,700$ Total Enterprise Funds 5,158,676$ 3,046,660$ $ 4 44,853 10,286,001 $ 18,936,190$ 87 ENTERPRISE FUNDS OVERVIEW
Enterprise Fund Revenues – FY 2026 Revenues by Fund and Account Type
Enterprise Fund Expenditures – FY 2026 Expenditures by Fund and Account Type
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Airport Development
Services
Marina Transit
$170,000$9,000
$2,601,090
$18,600$800,600 $5,000
$60,000
$43,500
$4,439,690 $9,755,562
$1,257,105
$31,402
$198,000
$50,591
180,000
FY 2026 Enterprise Fund Revenues
Taxes Licenses, Permits and Fees Charges for Sales
Charges for Services Intergovernmental Investment earnings and Rent Transfers In
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Airport Development
Services
Marina Transit
$534,691
$1,742,904
$135,666
$1,059,229
$731,250
$580,664
$57,550
$3,793,914$39,0…
$61,015
$56,000 $36,600
$253,511
$629,277
$121,237
$418,223
$200,000
$4,841,835
517,924
$2,882,300
$32,800
$74,400
$136,200
FY 2026 Enterprise Fund Expenditures
Salaries and Benefits Services and Supplies Utilities
Intragovernmental Capital Debt Service
Transfers Out
88 UTILITY FUNDS OVERVIEW
Utility Funds Overview
Utility Funds are classified as Enterprise Funds and are used to account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user fees and charges. Each Utility covers its cost of providing service and generates reserves for capital replacement and emergency repairs. Utility fund revenues cannot be used for any city purpose not benefiting the Utility enterprise.
The City of Petaluma Utility operates a state-of-the-art Wastewater Treatment Facility and Water Delivery System as well as manages a Stormwater system.
Revenues
The total budgeted revenues of the Utility Funds for FY 2026 are $66.4million, which is $7 million, or 12 percent, higher than FY 2025 revised budgeted revenues. The increase is primarily due to the impact of updated water and wastewater utility rates which incorporate annual CPI and water cost pass through increases.
Expenses
The total budgeted expenditures of the Utility funds for FY 2026 are $88.5 million, which is $6.4 million, or 8 percent, higher than the FY 2025 revised budget. Appropriations are included for salary and benefit changes in staffing allocations, step advancements through the salary ranges, and an additional position as well as other operating services and supplies. Wastewater expenditures are expected to increase by $8.39 million and are being driven by increased transfers out to fund capital projects that include sewer main and force main replacements, chemical system upgrade, and digester and oxidation pond repairs.
Wastewater reserves will fund much of the projects. Water expenditures are decreasing by $2.46 million due to the advanced water metering infrastructure project drawing to a close thereby reducing transfers out to fund the project. The Water capital projects planned for FY 2026 primarily include tank and water main replacements. Finally, Stormwater shows a $337.9k increase in expenditures due to funding a full- time engineering technician and a park project transfer out.
Fees
Utility Rates are updated annually on July 1st. Rates are set by resolution and require Council approval. In general, the size and timing of rate adjustments consider the cost of providing the service, current and future revenue requirements, capital projects, and reserve levels. New rates went into effect in FY 24 based on a five year rate plan. Rates increase annually in conjunction with the plan’s rising base rates plus CPI and water cost pass through increases.
Reserves
The financial revenue and expense forecasts are estimates at a single point in time. Reserves serve as balancing accounts which mitigate the risk of rate swings from year to year. Reserves are used to provide cash for replacement costs during an emergency infrastructure failure or serve as temporary parking for planned capital and operating expenditures. 89 UTILITY FUNDS OVERVIEW
Available reserves for the Utility funds can be found on the Fund Summary located in the Summary Schedules section of this document.
Utility Funds
Wastewater
This fund accounts for the daily operation and maintenance of the Ellis Creek Water Recycling Facility and for the management of the entire facility including but not limited to collecting and treating and re- using Wastewater. FY 2026 revenues generated by user fees are estimated at $34.2m and $1.9m from other sources. Approximately $30.1m will be used to support the cost of operations and capital purchases, and $27.5m (primarily including prior reserves and other revenues) will be used for the Wastewater capital improvement program.
Water
This fund accounts for the daily operation and maintenance of the Water delivery to residents, and it accounts for the management of the water system and citywide water conservation programs. FY 2026 revenues generated by user fees are estimated at $28.9m and $0.5m from other sources. Approximately $23.8m will be used to support the cost of operations and capital purchases, and $5.1m will be used for the Water capital improvement program.
Storm Water
This fund is used to account for costs associated with managing storm drain maintenance and operations such as regulatory compliance including maintenance of City drainage waterways, drainage inlets, manholes and culverts. A recommended 435k transfer out, primarily to a Park and Recreation capital improvement project, is included for FY 2026. The majority of costs in this fund are paid by the General Fund through a transfer of funds to cover the ongoing cost of operations.
90 UTILITY FUNDS OVERVIEW
Charts – Revenue and Expenditure Summary, by fund, change from prior year budget to current year budget and current year revenues and expenditures by fund type and by account type, are shown below for reference.
Utility Fund Revenues – Changes from Prior Year to Current Year
Utility Fund Expenditures – Changes from Prior Year to Current Year
Utility Fund Revenues – FY 2026 Revenues by Fund and Account Type
Utility Fund Expenditures – FY 2026 Expenditures by Fund and Account Type
Utility Funds FY 2025 Revenues FY 2026 Revenues $ Change % Change Waste Water 34,624,356$ 36,063,934$ 1,439,578$ 4% Waste Water Rate Stabilization 79,482 66,738 (12,744)$ -16% Water 23,669,109 29,422,131 5,753,022$ 24% Storm Utility 1,001,137 865,326 (135,811)$ -14% Total Utility Funds 59,374,084$ 66,418,129$ 7,044,045$ 12% Utility Funds
FY 2025 Revised
Budget FY 2026 Budget $ Change % Change
Waste Water 49,218,602$ 57,632,626$ 8,414,024$ 17% Water 31,383,639 29,051,658 (2,331,981) -7% Storm Utility 1,439,153 1,777,106 337,953 23% Total Utility Funds 82,041,394$ 88,461,390$ 6,419,996$ 8% FY 2026 Utility Fund Revenues Wastewater Water Storm Utility Total Taxes 312,500$ 312,500$
Charges for Sales 40,000 40,000 Utility Revenues 34,201,800 28,902,300 63,104,100 Investment earnings and Rent 1,051,288 363,216 24,353 1,438,857 Transfers In 93,580 528,473 622,053 Intergovernmental -
Other 784,004 116,615 900,619 Total Utility Funds 36,130,672$ 29,422,131$ 865,326$ 66,418,129$ FY 2026 Utility Fund Expenditures Wastewater Water Storm Utility Total Salaries and Benefits 8,590,381$ 5,956,763$ 737,641$ 15,284,785$ Services and Supplies 7,673,914 14,253,914 564,578 22,492,406 Intragovernmental 2,523,113 2,544,797 39,982 5,107,892 Utilites 2,549,600 260,350 2,809,950 Debt Service 8,560,318 549,034 9,109,352 Capital 240,500 337,800 578,300 Transfers Out 27,494,800 5,149,000 434,905 33,078,705 Total Utility Funds 57,632,626$ 29,051,658$ 1,777,106$ 88,461,390$ 91 UTILITY FUNDS OVERVIEW
Utility Fund Revenues – FY 2026 Revenues by Fund and Account Type
Utility Fund Expenditures – FY 2026 Expenditures by Fund and Account Type
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Wastewater Water Storm Utility
$312,500
$40,000
$34,201,800 $28,902,300
$1,051,288 $363,2…
$24,353
$93,580
$528,473
$784,004 $116,615
FY 2026 Utility Fund Revenues
Taxes Charges for Sales
Utility Revenues Investment earnings and Rent
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Wastewater Water Storm Utility
$8,590,381 $5,956,763
$737,641$7,673,914
$14,253,914
$564,578
$2,523,113
$2,544,797 $39,982
$2,549,600
$260,350
$8,560,318
$549,034
$240,500
$337,800
$27,494,800
$5,149,000
$434,905
FY 2026 Utility Fund Expenditures
Salaries and Benefits Services and Supplies Intragovernmental Utilites Debt Service Capital
92 INTERNAL SERVICE FUNDS OVERVIEW
Internal Service Funds Overview
Internal Service Funds are classified as Fiduciary Funds and are used to report the activities that provide goods and services to other funds, departments or component units of the City programs and activities.
The intent of the City is that the cost of providing the service is recovered by allocating costs, known as intragovernmental charges, to operating funds based on a variety of factors. Allocations are updated annually and are based on the annual budget of each Internal Service Fund providing the service.
Revenues
The total budgeted revenues of the Internal Service Funds for FY 2026 are $14.5 million, which is $2.0 million or a 12 percent decrease from FY 2025. This decrease is largely due to decreased revenues in the Information Technology, Risk Management, and Vehicle Replacement Fund partially offset by increased revenues coming into the Employee Benefit and Workers Compensation Funds. The cost of having employees continues to rise and charges out to operating funds serve as the mechanism to recover costs through citywide intragovernmental charges. Revenues in the Risk Liability Fund are decreasing due to a one-time rate holiday initiated in the new year as a cost savings measure and to utilize and reappropriate excess fund balance. This is intended to be a one-time reduction and allocations to funds will return to 100% in the FY 2026/27 budget to ensure fund reserves remain at adequate levels for adequate liability coverage. Risk Management charges represent cost recovery, an allocation out to departments that recover the cost of providing citywide services. The Workers Compensation program continues to experience increased costs, which directly impacts fund reserve requirements. Information Technology also recovers costs through intergovernmental charges, slightly decreased investment in technology is planned during FY 2025/26 while remaining diligent in securing and maintaining a reliable system citywide resulting in decreased costs and corresponding revenues to the fund. Finally, the Vehicle & Equipment Replacement Fund has less transfers in to fund capital needs in the coming year and instead will be utilizing accumulated fund balance to cover the cost of capital purchases. The FY 25/26 Vehicle Replacement fund budget continues to include the cost of leasing hybrid and electric vehicles. Maintaining an inventory of reliable vehicles ensures employees have the tools needed and are available to provide 24/7 service to the community.
Expenditures
The total budgeted expenditures of the Internal Service funds for FY 2026 is $14.7 million, which is a $1.8 million, or 11 percent decrease from FY 2025. Appropriations are included for salary and benefit costs of existing staff as well as funding for new positions, reclasses and other operating services and supplies. The primary factors driving this decrease are decreased costs in the Vehicle and Equipment Replacement Fund. Less capital purchases are expected to occur in FY 26. The Information Technology Fund is expecting slightly increased costs in the coming year related to staying up to date with current technology/security needs and include investment in citywide technology improvements. The Risk 93 INTERNAL SERVICE FUNDS OVERVIEW
Management Fund increase is due to the rising cost of the City’s excess insurance premium. Workers’ Compensation is also experiencing increased costs resulting from claims and rising costs of medical related procedures and services. Employee Benefits includes funds for an employee wellness program.
Internal Service Funds
Employee Benefits
The fund accounts for City employees' dental, unemployment and vision benefits, and retiree benefits.
General Services
The fund accounts for citywide printing and mail services. The intent of the General Services fund is to fully recover the cost of providing the service through intragovernmental charges to operating funds.
Information Technology
The fund accounts for the cost of purchasing, operating and maintaining the City's voice, data and computer systems. The intent of the Information Technology fund is to fully recover the cost of providing the service through intragovernmental charges to operating funds.
Risk Management
The fund accounts for the accumulation of the resources and expenses related to the City's risk management activities and general insurance programs. The City is self-insured up to a maximum of $750,000 for each general liability claim. The City carries additional liability coverage and is a member of the public entity risk pool. The intent of the Risk Management fund is to fully recover the cost of providing the program through intragovernmental charges to operating funds.
Workers Compensation
The fund accounts for the accumulation of resources, and expenses related to funding workers' compensation benefits for City employees. The City is self-insured up to a maximum of $1,000,000 for each workers’ compensation claim. The City carries excess insurance which provides liability coverage up to the statutory limit. The cost of offering workers compensation to employees is charged through payroll allocation where rates are set based on the type of each employee.
Vehicle Replacement
The fund accounts for the accumulation of resources, and related expenses incurred for the replacement of major equipment and vehicles in the City.
94 INTERNAL SERVICE FUNDS OVERVIEW
FY 2026 Internal Service Fund
Revenues by Type Employee
Benefits
General
Services
Information
Technology
Risk
Management
Vehicle &
Equipment
Replacement
Workers
Compensation Total
Investment Earnings and Rent 50,674$ 9,077$ 24,463$ 22,930$ 200,864$ 308,008$ Charges for Services - Intragovernmental 1,728,260 5,277,357 2,143,094 4,436,368 13,585,079 Other 103,115 103,115
Transfers In 500,000 500,000
Total Internal Service Funds 1,778,934$ 9,077$ 5,277,357$ 2,270,672$ 522,930$ 4,637,232$ $ 14,496,202 FY 2026 Internal Service Fund
Expenditures by Type Employee
Benefits
General
Services
Information
Technology
Risk
Management
Vehicle &
Equipment
Replacement
Workers
Compensation Total
Salaries and Benefits 349,000$ 95,851$ 2,001,840$ 582,212$ -$ 65,021$ 3,093,924$ Services and Supplies 244,868 46,650 2,658,350 3,618,250 100 3,267,152 9,835,370 Intragovernmental 2,909 18,267 34,651 51,871 379,469 487,167 Debt Service 534,926 534,926
Capital 575,000 575,000
Transfers Out 11,020$ 6,565$ 53,540$ 26,215$ 15,710$ 14,785$ 127,835 Total Internal Service Funds 1,142,723$ 167,333$ 4,748,381$ 4,278,548$ 590,810$ 3,726,427$ 14,654,222$ Charts – Revenue and Expenditure Summary, by fund, change from prior year budget to current year budget and current year revenues and expenditures by fund type and by account type, are shown below for reference.
Internal Service Fund Revenues – Changes from Prior Year to Current Year
Internal Service Fund Expenditures – Changes from Prior Year to Current Year
Internal Service Fund Revenues – FY 2026 Revenues by Fund and Account Type
Internal Service Fund Expenditures – FY 2026 Expenditures by Fund and Account Type
Internal Service Funds
FY 2025
Revenues
FY 2026
Revenues $ Change % Change
Employee Benefits 1,677,182$ 1,778,934$ 101,752$ 6% General Services 10,815 9,077 (1,738) -16% Information Technology 5,542,472 5,277,357 (265,115) -5% Risk Management 2,784,774 2,270,672 (514,102) -18% Vehicle & Equipment Replacement 1,952,201 522,930 (1,429,271) -73% Workers Compensation 4,525,414 4,637,232 111,818 2% Total Internal Service Funds 16,492,858$ 14,496,202$ (1,996,656)$ -12% Internal Service Funds
FY 2025 Revised
Budget
FY 2026
Budget $ Change % Change
Employee Benefits 1,187,160$ 1,142,723$ (44,437)$ -3.7% General Services 158,984 167,333 8,349 5% Information Technology 4,455,235 4,748,381 293,146 7% Risk Management 3,687,515 4,278,548 591,033 16% Vehicle & Equipment Replacement 3,248,748 590,810 (2,657,938) -82% Workers Compensation 3,760,805 3,726,427 (34,378) -1% Total Internal Service Funds 16,498,447$ 14,654,222$ (1,844,225)$ -11% 95 INTERNAL SERVICE FUNDS OVERVIEW
Internal Service Fund Revenues – FY 2026 Revenues by Fund and Account Type
Internal Service Fund Expenditures – FY 2026 Expenditures by Fund and Account Type
96 CITY COUNCIL
City Council
District 4
Council Member
Frank Quint
District 6
Member Council Member
Brian Barnacle
District 5
Council Member
Alex DeCarli
Mayor
Kevin McDonnell
District 1
Council Member
Janice Cader
Thompson
Petaluma Community
District 2
Council Member
John Shribbs
Vice Mayor
District 3 Council Member
Karen Nau
97 CITY COUNCIL
Description
The City of Petaluma was incorporated in 1858. Voters approved the City Charter in 1947, which, along with State and Federal laws, governs how City business is conducted. The City operates under the Council/Manager form of government, with legislative and policy authority vested in the City Council, and administrative authority vested in the City Manager. The City Council adopts citywide goals, priorities, and plans, and provides policy direction for City staff. The City Council appoints the City Manager, the City Attorney, and the City Clerk. The City Council also appoints the members of the City’s advisory boards, commissions and committees. The City Council typically meets twice a month in regular session and conducts special meetings and study sessions as needed. Council members also attend regional coordination meetings, are assigned as liaisons to certain of the City’s citizen’s advisory bodies and participate as members of regional boards and agencies.
Major Accomplishments and Highlights
Annually, the City Council establishes their Goals and Priorities which cover a rolling two-year fiscal period. In FY19, the Council established five overall goals: A City that Works for Everyone, Our Environmental Legacy, A Safe Community that Thrives, An Economy that Prospers, and Spaces and Places that Inspire. Many of the City’s current priorities continue to evolve from that initial robust community process that yielded hundreds of workplan items associated with those goals.
For FY 25/26, a goals and priorities workshop was held on February 10, to update the Council on the status of the Council-approved top goals and priorities for fiscal years 2025-2027. The goals and priorities were updated at the May 5 Council meeting. A full listing of the Council Goals and Priorities can be found at https://cityofpetaluma.org/city-goals-priorities/
Departmental and Program Budget Overview
Key Budget Highlights and Changes
A total City Council budget of $70,066 is recommended for 2025/26. This is a decrease of $20,025 from 2024/25.
Salaries of $23,599 are recommended for 2025/26, a decrease of $13,581 from 2024/25. This is mainly attributed to council members’ benefit selections.
Benefits of $18,885 are recommended for 2025/26, a slight increase of $121 over 2024/25. These changes represent the estimated cost in 2025/26 of the present City Council, including the current benefit choices selected by each member.
Services and Supplies are budgeted at $27,582, a slight decrease of $4,889 from 2024/25. This budget includes Petaluma Community Access TV (PCA) costs, leadership education and dues, conferences, and supplies for council meetings. Risk Management and Information Technology intragovernmental charges are also included in this category. Information Technology charges are unchanged from the prior year and cover costs necessary to stay up to date with current technology/security needs. Risk Management charges have declined slightly resulting from a one-time partial rate holiday initiated in the budget development process, to maintain fund reserves at appropriate levels and is not intended to be reoccurring.
11300 City Council Administration and Operations 2024 Actual 2025 Revised 2026 Budget Salary 33,534$ 37,180$ 23,599$
Benefits 18,846 18,764 18,885
Services & Supplies 53,937 32,471 27,582 City Council Administration and Operations 106,317$ 88,415$ 70,066$ Less Intragovernmental Offset (61,429) (57,642) (59,318) General Fund City Council Administration and Operations Net Cost 44,888$ 30,773$ 10,748$ 98 CITY ATTORNEY Y
City Attorney Department
99 CITY ATTORNEY Y
Description
The City Attorney’s Office is responsible for providing, coordinating, and managing all of the City’s legal service needs. By City Charter, the City Attorney: prosecutes Charter and Municipal Code violations; attends to all suits and matters to which the City is a party or in which the City has an interest; gives written advice to City officials and bodies whenever required to do so; passes on the sufficiency and validity of bonds and contracts of the City; and drafts proposed ordinances, resolutions, laws, rules, contracts, bonds and all other legal papers for the City. The City Attorney’s Office consists of the City Attorney, two and a half Assistant City Attorneys and a Legal Assistant. The City Attorney’s Office provides legal services and support for the City Council, all City subordinate bodies (commissions and committees), the City Manager, Assistant City Manager and all City departments. In accordance with City Council goals focused on maintaining long-term financial sustainability of the City, the City Attorney’s Office seeks to maximize in-house performance of the City’s legal services.
Major Accomplishments and Highlights
During 2024-2025, the City Attorney’s Office:
• Supported the City’s ongoing management, improvements, repairs, and expanded public activity programming at the Petaluma Fairgrounds;
• Prepared senior mobile home park overlay regulations which the City Council enacted; • Supported the City’s mobilehome park residents and mobile home park regulations by defending litigation brought by park owners, and bringing affirmative litigation to enforce violations of the City’s regulations;
• Provided City Council legislation for creation of the Public Safety Advisory Committee and helped staff the Committee by providing training and meeting support; • Helped administer completion of the agreement with SMART for construction of the Corona Station, completion of the agreements with Danco Communities for the Danco affordable housing project at Corona and agreements with Danco, SMART and HCD for the AHSC grant funding for the Corona Station, Danco housing and City traffic improvements and transit and related projects and programs
• Worked with the Economic Development and Open Government and Community Development Departments to prepare updated cannabis on-site retails sales regulations for Council adoption and worked with the City staff team to issue administrative regulations and invitations for onsite cannabis retail vendor applications;
• Worked with the Community Development team to provide ballot materials for renewal of the City Urban Growth Boundary for voter approval;
Mission Statement
The City Attorney strives to provide timely and thorough legal analysis and advice to the City Council, City staff, and the various City boards, commissions, and committees so that they are informed regarding legal options and potential impacts of management and policy decisions. 100
CITY ATTORNEY Y
• Drafted a resolution opposing Measure J and eradication of 21 Sonoma County poultry and dairy farms, many in the Petaluma area, for City Council adoption and discussion with and potential adaptation by other Sonoma County municipalities; • Assisted the Community Development staff in processing of the Downtown Housing and Economic Opportunity Overlay and EKN hotel applications; • Prepared a County-wide quiet zone agreement with Sonoma County for City Council approval to provide for a County-wide quiet zone to succeed the City’s quiet zone over the SMART rail line within the City;
• Assisted with revisions to Measure H (County-wide firefighting capital and staffing funding) agreements with Sonoma County to provide for timely disbursement of Measure H tax proceeds; and
• Managed 16 active lawsuits and resolved 2 pending cases.
Goals and Priorities
The City Council has not yet formally adopted its 2025-2026 goals. Subject to the Council’s final action and changes in priorities that may occur as a result, the City Attorney’s Office Goals and Priorities for FY 2025-2026 include:
• Preparation of strengthened regulations to protect the City’s nearly 900 households that own and reside in mobile homes in the City and to ensure the ongoing viability of the City’s mobile home park communities;
• Working with the City Manager’s Office, Parks and Recreation Department and other departments on presentation of the 2025 Petaluma fair, master planning of the Petaluma Fairgrounds property, and continuing expansion of public uses of the Fairgrounds; • Working with the City Manager’s Office, Finance Department and other City departments to update the City’s purchasing regulations;
• Working with the Police Department, the Economic Development and Open Government, and Community Development Department to prepare and present for City Council consideration new City regulations regarding vehicle parking; and
• Working with the Community Development Department to provide for preparation of the City’s updated General Plan, and related Zoning Ordinance and development fee updates for City Council enactment.
In addition to the priorities identified above, the City Attorney’s Office will continue its ongoing Council agenda and agreement review duties and support City departments responsible for completing other Council priorities, especially those involving new legislation, legal opinions and new agreements and policies.
Performance Measures
Strategic Goal Description
Measure
Type
FY
2023/24
Measure
FY
2024/25
Target
FY
2024/25
Measure
FY
2025/26
Target
A City that Works Set appropriate
claims and case
reserves; resolve
within reserve amt
Output All active
claims,
cases
All active
claims, cases
All active
claims, cases
All active
claims, cases
A City that Works Resolve 1/3 of active
cases
Outcome 8 cases 16 cases 9 cases
1/3 cases
A City that Works Timely filing of all
Pitchess, weapons
matters
Outcome All matters All matters All matters All matters 101
CITY ATTORNEY Y
Strategic Goal Description
Measure
Type
FY
2023/24
Measure
FY
2024/25
Target
FY
2024/25
Measure
FY
2025/26
Target
A City that Works Prepare legislative
actions for Council
adoption
Output 2 major, 5
minor
2 major, 2
minor
4 major, 1
minor
2 major, 2
minor
A City that Works Provide timely legal
review of HCPC,
Planning
Commission,
Council agendas
Output All agenda
items
All agenda
items
All agenda
items
All agenda
items
A City that Works Provide timely legal
review and approval
of City agreements
Output All
agreements
All
agreements
All
agreements
All
agreements
A City that Works Provide timely legal
review of City
administrative
policies
Output All policies All policies All policies All policies A City that Works Attend annual
professional
development
programs
Outcome Maintain
legal staff
expertise
Maintain legal
staff expertise
Maintain legal
staff expertise
Maintain legal
staff expertise
Departmental and Program Budget Overview
Key Budget Highlights and Changes
A City Attorney department budget of $1,606,118 is recommended for 2025/26. This is an increase of $39,489 over 2024/25. The overall budget increase is driven by an increase in salary and benefit costs, each of which are addressed below.
Salaries are recommended at $986,246, an increase of $43,618 over 2024/25. This increase is primarily due to increasing one position from part time to full time with the cost allocation to departments and programs, position allocations, negotiated cost of living adjustments and additional negotiation impacts in the new year.
Benefits are recommended at $320,719 representing an increase of $14,147 over 2024/25. This change is primarily attributed to increased medical and retirement costs and employee benefit selections.
Services and Supplies are recommended at $299,153, a decrease of $18,276 from 2024/25. This category continues to include appropriations for outside special legal services and other operating services and supplies. Outside legal services budget is slightly reduced from the prior year. Risk Management and Information Technology intragovernmental charges are also included in this category.
Information Technology charges are slightly increased from the prior year and cover costs necessary to 11310 City Attorney Administration and Operations 2024 Actual 2025 Revised 2026 Budget Salary 775,723$ 942,628$ 986,246$
Benefits 229,673 306,572 320,719
Services & Supplies 289,875 317,429 299,153 City Attorney Administration and Operations 1,295,271$ 1,566,629$ 1,606,118$ Less Intragovernmental Offset (554,328) (551,582) (682,871) General Fund Attorney Administration and Operations Net Cost 740,943$ 1,015,047$ 923,247$ 102
CITY ATTORNEY Y
stay up to date with current technology/security needs. Risk Management charges have declined slightly resulting from a one-time partial rate holiday initiated in the budget development process, to maintain fund reserves at appropriate levels and is not intended to be reoccurring.
Looking Forward
For 2025/2026, the City Attorney’s Office will be working hard to complete major efforts currently underway in support of the City’s new General Plan, and to continue the City’s work to make needed repairs and improvements at the Petaluma Fairgrounds while expanding public uses and preparing for master planning the property, preparing strengthened mobile home park regulations, and updates to the City’s parking and purchasing regulations, along with work on other City policy updates. When the City Council gives direction on its 2025/2026 priorities the Council may revisit current priorities, and we will be prepared to refocus our efforts if that is the direction of the Council majority.
We will be working with the Community Development and Finance departments to increase cost recovery for time of City Attorney’s Department members devoted to development application review to generally avoid publicly funded private development subsidies and obtain General Fund budget relief.
It is hoped that this effort may help increase the allocation for the current ½ time Assistant City Attorney position.
103
CITY ATTORNEY Y
104
CITY CLERK
City Clerk
105
CITY CLERK
Description
The City Clerk is a charter officer appointed by the City Council, who ensures the democratic process through transparent meeting and election facilitation and open access to City records and legislative history. The City Clerk serves as liaison between the public, the media, City staff, and City Council. The Charter of the City of Petaluma and the Government Code determine the City Clerk's statutory functions. The primary responsibilities of the Office of the City Clerk include:
As the Legislative Administrator:
• Prepares the legislative agenda, ensures legal notices have been posted or published within the statutory time frames, and facilitates open meetings.
• Records and codifies legislative decisions which constitute the Municipal Code and City Charter.
As the City Elections Official:
• Administers elections for the City from election pre-planning to certification of election results. • Assists candidates in meeting their legal responsibilities before, during and after an election as the Filing Officer for Fair Political Practices Commission (FPPC) Campaign Statement and Statement of Economic Interest disclosures.
As the Records Manager:
• Oversee the preservation and protection of the public record, e nsuring the availability and accessibility of public information.
• Receives and processes requests for records and information made by the public in accordance with the California Public Records Act.
Other Responsibilities:
• Receives claims, summons, appeals, suits, and complaints. • Manages the City’s committee, commission, and board recruitments and provides staff liaison support for the facilitation of committee and commission open meetings. • Facilitates bid openings and contract administration.
Major Accomplishments and Highlights
• Launched the new Public Records Request system, NextRequest, to help streamline the process for both staff and the public, making the City’s records more transparent and accessible. Since June 21, 2024, the city has received and responded to over 400 requests and disclosed over 100,000 records (City Council Goals and Priorities Workplan #33). • Initiated the process of auditing physical records inventory both on-site and off-site, and coordinating the destruction of over 800 boxes of obsolete records in compliance with the City’s Records Retention Schedule, helping to reduce the City’s exposure to liability and provide cost savings by reducing the need for offsite storage of records (City Council Goals and Priorities Workplan #159).
Mission Statement
Committed to promoting public trust in government by ensuring the City’s legislative processes are transparent; providing equitable, accurate, timely access to information and service; safeguarding the legislative history of the City; and administering open elections. 106
CITY CLERK
• Advertised and conducted an annual recruitment for approximately 30 vacancies on City committees and commissions, administered the Oath of Office for newly appointed members and oversaw the training and filing of statements of economic interest for all appointees. • Worked with Police Department staff to establish regular committee meetings for the newly created Public Safety Advisory Committee.
• Completed the City’s transition from at-large to district-based elections, with the administration of the November 5, 2024 General Municipal Election of three new district representative Council members.
Goals and Priorities
• Develop a clear and comprehensive onboarding process for Committee, Commission and Board members, including Brown Act Training and Conflict of Interest training, helping our appointed members understand their role and responsibilities, and making it easy for staff to provide support and direction. (City Council Goals and Priorities Workplan #30, #39, #164) • Continue to implement the Citywide Records Management Program. Provide staff training on Records Management and how to use the Records Retention Schedule; implement the updated Schedule by utilizing automated retention features in the existing Electronic Document Management System (Laserfiche). Arrange for staff training on use of the City’s EDMS and encourage departments to store scanned records in Laserfiche making these records searchable, accessible, and protected for easier access by staff and the public and reducing the expense of off- site records storage. (City Council Goals and Priorities Workplan #11, #159, #164) • Facilitate an update to the City Council Rules and Procedures to increase readability and to align with current practices. Currently many of the rules and procedures related to City Council are scattered throughout separate documents, such as the Rules and Procedures, City Charter, Municipal Code, City policies, State law, and Rosenberg’s Rules of Order. The intention is to create a comprehensive document for staff, Council, and the public to access all relevant information in a centralized document. Once approved, the updated Rules will be used to create standardized procedures for all City committees and commissions, as well as outline the requirements of the Brown Act, Public Records Act, parliamentary procedure, ethics, harassment prevention, and other areas of interest. (City Council Goals and Priorities Workplan #11, #12, #30, #164) Performance Measures
Strategic
Goal Description
Measure
Type
FY
2023/24
Measure
FY
2024/25
Target
FY 2024/25
Measure
FY 2025/26
Target
A City That
Works
Percentage of Public Records
Act Requests Responded to
Within Statutory Time Frame
Output 75% 100% 97% 100%
A City That
Works
Percentage of Public Meeting
and Legal Notices Published
On or Before Statutory Time
Period
Output 100% 100% 100% 100%
A City That
Works
Number of City Council
Legislative Actions Processed,
Recorded, and Codified
Output 12 12 24 18
A City That
Works
Percentage of Annual Conflict
of Interest Filings for Council,
Boards, Commissions, and
Employees Filed On or Before
the Statutory Deadline
Output 77% 100% 88% 100%
A City That
Works
Percentage of Vacant Seats
on Committees and Output 73% 100% 100% 100%
107
CITY CLERK
Commissions Filled During the
Annual Recruitment
Departmental and Program Budget Overview
Key Budget Highlights and Changes
A City Clerk department budget of $855,551 is recommended for 2025/26. This is an increase of $38,007 over 2024/25.
Salaries are recommended at $ 415,588 an increase of $27,796 over 2024/25. This is attributed to negotiated cost of living adjustments and an increase in part time salaries to assist with record retention management.
Benefits are recommended at $182,562 representing an increase of $27,349 over 2024/25. This is related to increased health and retirement costs as well as employee benefit selections.
Services and Supplies are recommended at $257,104, a decrease of $17,138 from 2024/25. This category includes appropriations for records management, storage and scanning, and staff training.
One-time costs budgeted in FY 24/25 related to a records retention schedule update and codification services have been removed as they are non-recurring in the new year. Also included is funding for potential election-related costs during the year. Risk Management and Information Technology intragovernmental charges are also included in this category. Information Technology charges are unchanged from the prior year and cover costs necessary to stay up to date with current technology/security needs. Risk Management charges have declined slightly resulting from a one-time partial rate holiday initiated in the budget development process, to maintain fund reserves at appropriate levels and is not intended to be reoccurring.
Looking Forward
The City is quickly adapting processes and procedures to increase transparency and accessibility in response to, and in anticipation of, rapidly changing technology, legislative actions, and community needs. There is an increasing pressure for information to be instantly accessible, available in Spanish, and to be provided in a multitude of formats. The City Clerk’s Office is balancing projects that will catch the City up to current times, such as the implementation of a Citywide Records Management Program, with projects that will lead us into the future, such as the new online public records request system. The By Departmental Program 2024 Actual 2025 Revised 2026 Budget City Clerk Administration and Operations 560,777$ 612,582$ 637,000$ City Clerk Elections 96,047 204,962 218,551 General Fund City Clerk 656,824$ 817,544$ 855,551$ Less Intragovernmental Offset (317,980) (333,238) (354,727) General Fund City Clerk Net Cost 338,844$ 484,306$ 500,824$ By Account Type 2024 Actual 2025 Revised 2026 Budget
Salary 395,858$ 387,792$ 415,588$
Benefits 86,958 155,213 182,562 Services & Supplies 174,008 274,539 257,401 City Clerk 656,824$ 817,544$ 855,551$ Less Intragovernmental Offset (317,980) (333,238) (354,727) City Clerk Net Cost 338,844$ 484,306$ 500,824$ 108
CITY CLERK
challenge with balancing these projects lies in the sequencing and cross-departmental coordination that needs to occur for successful implementation.
109
CITY CLERK
110
CITY MANAGER
City Manager
111
CITY MANAGER
Description
The City Manager’s Office serves as the vital link between the major decisions made by the City Council and the committed, professional team responsible for providing essential services to the residents of Petaluma. In a council-manager form of government, an elected city council serves as the city's primary legislative body and appoints a chief executive officer called a city manager to oversee day -to-day municipal operations, draft a fiscally responsible budget that is responsive to the community’s needs, and to implement and enforce the council's policy and legislative initiatives.
In order to maintain fiscal responsibility and address operational needs, the City Manager presents the annual and capital budgets to the City Council and keeps them informed of the city’s financial standing.
The City Manager’s Office is also instrumental in negotiations, both with external agencies and organizations, as well as internal labor agreements.
Major Accomplishments and Highlights
The City Manager’s Office is proud to share some of our key accomplishments and highlights, showcasing our dedication to serving the community . Many of these projects were led by other departments with support from the City Manager’s Office, but we list them here to underscore the multi- disciplinary team approach the City utilizes. Other departments’ narratives will highlight many of these accomplishments as well:
• Completed zoning code/muni code draft of updated tree ordinance and conducted Tree Advisory Committee hearings
• Achieved community voter approval of a 25 -year Urban Growth Boundary extension ballot measure
• Adopted updated retail cannabis regulations and administrative procedures; selected three operators to apply for retail licenses
• Coordinated with 4th District Agricultural Association to put on 2024 Fair Event • Implemented a variety of infrastructure improvements at the fairgrounds: water / wastewater pump station, pavement improvements, traffic circulation improvements, building renovations, roof replacements, new pickleball sport courts, etc.
• Executed new agreement with 4th District Agricultural Association to co-manage the fair event and executed license agreement recission to facilitate the DAA move off of the property • Implement micro transit program focused on downtown accessibility • Established the Public Safety Advisory Committee and began monthly PSAC meetings • Established a workplan with the Independent Police Auditor and produced the second IPA annual report
• Council adoption of Integrated Pest Management Plan
• Expanded Senior Services through community partnerships to seven days of week • Council adoption of the Blueprint for Climate Action
• Innovate Petaluma - Enterprise Resource Planning Software implementation commencement • November 2024 Election Administration
• Public record request process upgrades and records retention schedule roll-out citywide • City offices expansion on Redwood way
• Reviewed and re-bid City employee dental plan
• Reviewed draft General Plan Land Use alternatives with City Council • Opened Petaluma North SMART Station
• Collaboration with DANCO Communities to receive tax credit financing for the Meridian at Corona Station project - site includes a 100% affordable housing project that includes 30+ 112
CITY MANAGER
permanent supportive units that each have a project -based voucher covering the operating costs for support of those residents
• Completed Year 3 of our Strategic Plan to End Homelessness, including award of a substantial $8.1 million Encampment Resolution Grant.
• Initiated litigation to enforce protections for the City’s mobile home park residents and adopted additional legislative protections
• Partnered with Rebuilding Together Petaluma to do a community cleanup of Lynch Creek Trail
• Secured a $1M+ grant to begin master planning of the City-owned fairgrounds in FY25/26 • Competed for and was selected as an All-America City by the National Civic League • CIP Achievements:
o Coordinated closely with Fire and Police leadership and our Capital Improvement Program team to advance planning for the Petaluma Public Safety Facility, including refining space needs, completing site surveying, and onboarding key consultants. o Supported the continued implementation of Petaluma’s citywide pavement restoration and rehabilitation strategy, with the completion of the complete streets rebuild of Maria Drive, which included expanding recycled water service, and enhancing safety and accessibility.
o Celebrated a major community infrastructure improvement with the replacement of floating docks at the Petaluma River Turning Basin, enhancing public access and revitalizing this downtown waterfront resource.
o Continued progress on planning for the future of the Petaluma Fairgrounds, including assessment of deferred maintenance needs and the completion of a comprehensive inventory and site mapping effort to support short- and long-term capital improvements.
Goals and Priorities
Our Goals and Priorities are focused on fostering a thriving and sustainable community for all residents.
Our key objectives include:
• Update Urban Forestry Management Plan processes, applications, permitting system, staffing roles, outreach regarding final updates
• Re-evaluate impact fees based on square footage and incentives for affordable housing • Update Zoning Code to reflect city's housing plan (City Council) • Work with community-based partners to develop a sustainable homeless service program • Complete Environmental Impact Review and Adopt General Plan 2050 • Adopt zoning code update based on General Plan 2050 and complete environmental analysis of zoning code changes
• Conduct a public engagement process focused on new transit -oriented development near Petaluma North Station Specific Plan area
• Commence Fairgrounds Master plan process
• Complete plan to improve pedestrian access and gathering spaces in the downtown • Adopt new parking regulations as part of Zoning Code Update • Identify funding for and prioritize mid to long term strategies outlined in Downtown Parking Management Plan
• Implement near-term parking management strategies outlined in Downtown Parking Management Plan
• Complete Lakeville Corridor Study
• Complete Safe Routes to School quick-builds and speed limit reductions at all public schools 113
CITY MANAGER
• Complete Citywide Active Transportation Wayfinding Plan • Implement first round of wayfinding signs
• Update Complete Streets Policy (via Council Resolution) • Complete Downtown Station Access & Circulation Plan
• Complete the Flood, SLR, Risk Assessment & Adaptation Plan • Conduct community engagement in select landscape assessment districts to align community expectations with funding
• Go live with Innovate Petaluma - Enterprise Resource Planning Software Implementation • ECWRF Organic Loading & Plant Upgrade Alternatives Study • Integrated Water Master Plan
• Labor Contract Negotiations
• Organic Turf Management Pilot Program
• Sewer and Water Master Plans
• Stormwater Permit (2025) Implementation of Compliance Programs • Transition Aquatics Programming under City operations • Triennial Building and Fire Code Adoption
• Water and Wastewater Capacity Fee Study
• CIP Goals for 2025/26:
o Begin construction on the long-anticipated Lucchesi Skatepark, a community-led project supported by multiple funding sources that reflects the City’s investment in youth recreation and inclusive public spaces.
o Continue to collaborate with the US Army Corp of Engineers and State Coastal Conservancy to execute maintenance dredging of the Petaluma River, ensuring continued navigability and ecological stewardship of this iconic community waterway. o Transition the PIPS Parallel Force Main project into construction to strengthen system resiliency and ensure long-term capacity for wastewater treatment. o Complete installation of a floating solar array at Ellis Creek Water Recycling Facility, supporting the City’s climate goals and delivering long-term operational cost savings. o Continue supporting citywide CIP project prioritization and optimization efforts, ensuring effective use of resources and continued progress on high-impact infrastructure investments.
Performance Measures
Strategic
Goal Description
Measure
Type
FY
2023/24
Measure
FY 2024/25
Target
FY 2024/25
Measure
FY 2025/26
Target
A City That
Works
Prepare a
balanced budget
Output 100% 100% 100% 100%
A City That
Works
Increase Capital
Improvement
Program
performance
Output 74% 75% 77% 80%
A City That
Works
Achieve a stable
workforce
(vacancy rate
under 20%)
Output 100% 100% 100% 100%
114
CITY MANAGER
Departmental and Program Budget Overview
Key Budget Highlights and Changes
A City Manager Operations budget of $ 2,011,301 is recommended for 2025/26, which is a $33,586 decrease from the revised budget for 2024/25.
Salaries are recommended at $1,157,586, an increase of $19,471 over 2024/25. This reflects negotiated salary and cost of living adjustments, and employee step advancements through the salary ranges.
Benefits are recommended at $438,233, a slight decrease of $9,979 from the revised budget for 2024/25.
The decrease reflects employee benefit selections, slightly offset by increases in retirement and workers compensation costs.
Services and supplies are budgeted at $ 415,482 which is a decrease of $43,078 from 2024/25. This category reflects charges for community programs and engagement consulting services , equipment leases, repairs/maintenance, leadership education and dues, community and employee recognitions and intragovernmental charges. Risk Management and Information Technology intragovernmental charges are also included in this category. Information Technology charges are unchanged from the prior year and cover costs necessary to stay up to date with current technology/security needs. Risk Management charges have declined slightly resulting from a one -time partial rate holiday initiated in the budget development process, to maintain fund reserves at appropriate levels and is not intended to be reoccurring. The decrease is also due to less one-time nonrecurring professional services costs in the coming year.
Looking Forward
As we look to the future, the City of Petaluma is committed to providing excellent services that our community needs and deserves that are sustainable, impactful, responsive, and equitable. Projects housed within the City Manager’s Office reflect the diverse goals and priorities set forth by Petaluma City Council and needs expressed through extensive community feedback.
In addition to the many discrete goals and objectives mentioned above, some areas of focus in 2025/26 include:
• Renewed focus on economic development, encouraging downtown investment and improvement • Long-term planning with Council and community for City fiscal and organizational sustainability • Continued stewardship and leveraging of Measure U and Measure H funds to maximize community benefit.
• Supporting the roll-out of the general plan update process and the greenhouse gas blueprint; and • Strategically positioning Petaluma for significant investments in high-quality affordable housing and transit-oriented development projects.
11330 City Manager Administration and Operations 2024 Actual 2025 Revised 2026 Budget Salary 1,005,955$ 1,138,115$ 1,157,586$
Benefits 360,462 448,212 438,233
Services & Supplies 752,698 458,560 415,482 City Manager Administration and Operations 2,119,115$ 2,044,887$ 2,011,301$ Less Intragovernmental Offset (749,587) (975,308) (1,060,730) General Fund City Manager Administration and Operations Net Cost 1,369,528$ 1,069,579$ 950,571$ 115
CITY MANAGER
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Community Development
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Description
The Community Development Department comprises of the Planning, Building, Code Enforcement and Housing divisions.
The Planning Division is responsible for all development and associated improvements on private property, including residential, industrial, and commercial projects. The Planning Division leads the effort to implement the City’s General Plan and enforce the regulations in the Implementing Zoning Ordinance, Smart Code, and other adopted regulations.
The Division also serves to interpret City policies, ordinances, and codes, and works closely with the City Manager and other City departments. Planning staff interacts with a variety of public and private organizations and citizen groups in developing programs and implementing policies to find creative solutions to planning issues. Planning staff develops specific proposals for action on current City planning proposals; makes interpretations of City regulations and various ordinances, codes and applicable laws to ensure compliance; and works closely with the City Council, citizen boards and commissions, and public and private officials to provide technical assistance, advice, and recommendations related to urban development within the overarching vision of the City's General Plan.
The Planning Division performs a wide range of customer service activities, including operating the public counter to respond to zoning related inquiries and review a range of over-the-counter permits (fence permits, home occupation permits, short term vacation rental permits, etc.). Planning staff conducts zoning clearance for all business license application and reviews building permit application for compliance with zoning regulations. Additionally, the Planning Division organizes and facilitates the City's Development Review Committee.
Environmental review of both development applications such as subdivisions, planned unit developments, site plan and architectural review, variances, and annexations, and city-initiated projects such as zoning code amendments and policy documents. The Planning Division also provides environmental review support for other City Departments, including Public Works and Utilities. The range of environmental review documents prepared and/or managed by Planning staff includes categorical exemptions, consistency analysis, initial studies and negative declarations, and environmental impact reports.
The advanced planning function within the Planning Division provides oversight and collaboration on a range of long-term planning efforts, including policy development, code updates, community engagement efforts, and many other city-initiated efforts. This work is both within the planning division and collaboratively with other departments.
The Planning Division also includes staff members focused on specialties such as public art and historic preservation.
Mission Statement
Providing professional and equitable administration of the City's policies and regulations while fostering creative and diverse design and a cohesive land use pattern to maintain an exceptional, safe, and livable built environment in partnerships with residents, business owners, and community organizations. To succeed as a prosperous, healthy, and equitable community, it is essential that our City embrace and model diversity, equity, and inclusion in our policies, programs, and services. 118
COMMUNITY DEVELOPMENT
The planning team directly supports the City Council, the Planning Commission, the Historic and Cultural Preservation Committee, the Public Art Committee, and facilitates the City’s Development Review Committee.
The Building Division is entrusted with the protection of public health and safety of all building construction in the City through the enforcement of State and Local Building Codes. In addition to full- time staff, the Building Division utilizes the assistance of outside plans examination consultants to assure that plan review turnaround times are consistently met.
The Building Division is responsible for plan review of all proposed construction to ensure that State and Local Building Code requirements are reflected on plans. These codes include disabled access, life safety, and energy conservation. The Building Division staff performs field inspections of all approved building construction to ensure compliance with the approved plans and State and Local Building Codes.
The Code Enforcement Division is focused on Neighborhood Preservation, also viewed as code enforcement, is an established program to help preserve and improve the physical, social, and economic health of Petaluma’s neighborhoods. This program is designed t o develop community partnerships between the City, its residents and neighborhoods. Neighborhood Preservation focuses on public education, empowerment, and the establishment of community partnerships and pride as the primary measure to gain voluntary compliance with the City’s Municipal Code and Zoning Ordinance and Adopted Building and Safety Codes. The Division strives to achieve this through proactive, coordinated and cooperative steps to enhance the quality of its neighborhoods for the future.
The Housing Division is responsible for addressing our City Council’s goals to enhance the quality of life for our low-income community through its programs; facilitate the provision of programs, projects and shelter for residents with special needs; provide affordable rental housing; promote housing choices and opportunities; and to promote principles of sustainability. The Division also ensures compliance with federal, state, and local affordability and program compliance; coordinates community nonprofit efforts; nurtures relationships with local agencies (Sonoma County & Santa Rosa), regional Association of Bay Area Governments (ABAG), state Housing Community Development (HCD), and federal Housing and Urban Development (HUD) housing partners.
Major Accomplishments and Highlights
Downtown Housing and Economic Opportunity Overlay: In 2024, the City successfully approved the Downtown Housing and Economic Opportunity Overlay, which included the certification of the Final Environmental Impact Report (FEIR), adoption of amendments to the General Plan, implementing the Zoning Ordinance, and updating the Zoning Map. These changes are designed to support Downtown businesses, the viability of our historic Downtown, and activate a one block by two block area in our Downtown that is 77% vacant and underutilized.
One-Stop Permit Center: The City completed the remodel of the One-Stop Permit Center, focusing on improving customer service and experience. Key services now include the Business/Project Consultation Program and a proactive, concierge approach to connecting with and assisting customers who have building permits approaching expiration or lack activity. This initiative has resulted in an increase in customer responses and engagement.
• Housing Permits and Development: The City is in the process of completing the 2024 Annual HCD Housing Element Progress Report which highlights the continued progress toward meeting the Regional Housing Needs Assessment Goals. It includes building permits issued across all income levels, Identifies housing units by housing type, and tracks the number of Certificates of 119
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Occupancy issued. The final report will be posted to the city website @ https://cityofpetaluma.org/documents/2023-annual-housing-element-progress-report/ • Cannabis Ordinance Pilot Program: The City developed and implemented a pilot program for the newly adopted Cannabis Ordinance, in collaboration with various city departments.
General Plan Updates: Significant progress was made in updating the City’s General Plan. Notable achievements include the completion of Environmental Justice and Land Use Alternatives.
Housing and Homeless Services
• Encampment Resolution Program Grant: The City secured an $8.1 million grant from the State of California's Encampment Resolution Program. This three-year program will continue to provide and enhance services for individuals experiencing homelessness. • Pro-Housing Designation and Housing Program Grant: The City received a Pro-Housing Designation from the California Department of Housing and Community Development (HCD).
Leveraging this designation, the City applied for and was awarded $840,000 to support its housing program.
Goals and Priorities
• Increase level of community participation that is representative of the city • Continue to increase county and regional coordination and implement key strategies in partnership with community organizations for the next 3-year Homeless Services Action Plan. • Identify and adopt city building and land use policies to streamline local review of housing development proposals
• Focus on economic development to to facilitate tenancy in commercial spaces citywide, and increase number of permits approved and facilitated and create a concierge experience in partnership with a ‘strike team’ of the Economic Development, Community Development, City Engineer/Development Engineering, and the City Manager’s office
Performance Measures
Strategic
Goal Description
Measure
Type
FY
2023/24
Measure
FY 2024/25
Target
FY 2024/25
Measure
FY 2025/26
Target
A City That
Works
All staff is trained
in diversity, equity
and inclusion
principles
Output n/a 0% 0% 100%
A City That
Works
All customer
inquiries are
responded to
within 72 business
hours
Output n/a 90% 90% 100%
A City That
Works
Demographic and
geographic equity
in community
participation in
policy development
Output 54 60 63 70
A City That
Works
% of total people
served through
city’s affordable
housing,
community
development and
homeless service
programs
Output n/a 600 600 600
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Departmental and Program Budget Overview
Key Budget Highlights and Changes by Program
A Division budget of $8,113,799 is recommended for 2025/26. This is a decrease of $2,084,898 from the revised budget for 2024/25.
Salaries are recommended at $ 2,026,822, an increase of $ 151,531 over 2024/25. This increase is attributed to reclassifications of existing positions adopted during FY 24/25 to better align department needs with service expectations. Positions reclassed include a Housing Manager and Senior Planner.
The Senior Planner is fully grant funded. Also contributing to the increase is the negotiated cost of living adjustments and step advancements through the salary ranges.
Benefits are recommended at $927,319 an increase of $168,346 over 2024/25.This is attributed to the new benefit costs associated with the position reclassifications listed above as well as employee benefit selection, increased retirement, and workers compensation costs.
By Departmental Program 2024 Actual 2025 Revised 2026 Budget Planning Admin 744,542$ 800,805$ 1,161,623$ Planning Cost Recovery 1,066,196 995,800 895,000 General Fund Community Development 1,810,738$ 1,796,605$ 2,056,623$ Commercial Linkage Fees 875,617 523,863 95,604 Housing In-lieu Impact Fees 515,491 1,950,455 1,444,034 Community Development Block Grant (CDBG) 520,926 636,948 317,000 Home/Begin Grants - 90,000 - Permanent Local Housing Authority (PLHA) - 1,270,000 125,713 Successor Agency Housing 766,640 479,734 881,932 Mobile Home Rent Program 123,161 7,418 3,025 Successor Agency Housing Admin 234,364 151,620 143,208 Development Services Admin 269,920 562,483 332,548 Building Services 3,165,727 2,645,571 2,640,534 Building Services Cost Recovery 21,144 84,000 73,578
Non General Fund Community Development 6,492,990$ 8,402,092$ 6,057,176$ Community Development Net Cost 8,303,728$ 10,198,697$ 8,113,799$ By Account Type 2024 Actual 2025 Revised 2026 Budget
Salary 1,428,614$ 1,875,291$ 2,026,822$ Benefits 620,403 758,973 927,319 Services & Supplies 4,740,259 6,589,788 4,146,641 Utilities 63,137 6,000 61,015 Capital Expenditures 511,000 185,000 - Transfers 940,315 783,645 952,002 Community Development 8,303,728$ 10,198,697$ 8,113,799$ 121
COMMUNITY DEVELOPMENT
Services and supplies are recommended at $4,146,641, a decrease of $2,443,147 from 2024/25. This budget includes contracted building and planning support services partially recovered through development activity, program costs in the housing division to support affordable housing programs and intragovernmental charges for Administration, Risk Management, and Information Technology. The decrease is primarily attributed to decreased housing projects programmed in FY 2025/26 partially offset by increased intragovernmental charges. Administration overhead is up slightly while Information Technology charges are unchanged from the prior year and cover costs necessary to stay up to date with current technology/security needs. Risk Management charges have declined slightly resulting from a one-time partial rate holiday initiated in the budget development process, to maintain fund reserves at appropriate levels and is not intended to be reoccurring. Also included in this category are funding and costs associated with the Permanent Local Housing Authority (PLHA) intended to fund the Home First program, CDBG, Housing Land Trust and Fair Housing programs.
Utilities are recommended at $61,015, an increase of $55,015 over 2024/25 budget. This change is attributed to aligning the budget to historical actuals and anticipated ongoing costs in FY 25/26.
No Capital Expenditures are recommended in 2025/26.
Transfers out are recommended at $952,002 an increase of $168,357 over 2024/25 which is mainly attributed to increased transfers out from Housing in Lieu to support the cost of administering the City’s housing programs.
Looking Forward
The Community Development Department will continue to build on its mission of providing exceptional customer and community service, ensuring that Petaluma remains a city that works for everyone.
Notably, the department will focus on enhancing systems and improving customer experience within the city’s new One-Stop Permit Center at City Hall by focusing on streamlining the application process.
Additionally, the community will have numerous opportunities to engage in shaping the future of Petaluma through the update to the General Plan. Other critical planning efforts will include the development of a master plan for Petaluma’s Fairgrounds and the Petaluma North Specific Plan. These initiatives are vital to ensure that both current and future residents of Petaluma have the resources and opportunities they need to thrive
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Economic Development and Open Government
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Description
The City created the Economic Development and Open Government (EDOG) Department in 2019. This Department joins several important functions – Economic Development, Communications/Public Information, Information Technology (IT) Infrastructure, and Business Systems and Data – to support a healthy local economy; meet the public’s need for transparency; allow for greater engagement from community members; support organizational productivity and digital security; and ensure continuity of government during a disaster or emergency.
The Department leverages technology and human ingenuity to achieve these goals. Across the Department, the focus is on process improvement, information management, and customer service.
Major Accomplishments and Highlights
Economic Development
• Improved operating conditions for Downtown businesses by working with internal and external partners to address parking, graffiti, and security concerns. • Amplified existing downtown holiday lighting program by adding lighted decorations to Water Street, Center Park, and Helen Putnam Plaza.
• Partnered with the Petaluma Downtown Association and Chamber of Commerce to inform the business community about major development projects.
• Supported economic growth by helping businesses navigate City requirements for opening and/or major development.
• Managed lease renewals, future development, and other actions related to select City-owned properties, including the Fairgrounds.
• Brought business/economic development perspective to city policy decisions and made sure businesses were informed of policies that affect them.
• Participated in regional economic and workforce development efforts, including those led by the Sonoma County Economic Development Board.
• Led the selection and permit development process for the new storefront retail cannabis program.
• Led the permit process for the 2024 Sonoma Marin Fair. Conducted city-wide commercial property vacancy analysis and developed vacancy mitigation strategies in partnership with commercial property owners and leasing agents.
Mission Statement
To leverage technology and human ingenuity to solve problems and support a positive relationship between the City and its community
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Communications
• Continued a multi-year effort to increase community engagement by improving quality and expanding output in city-wide communications.
• Increased awareness and brought the community into the decision-making process for major initiatives and policies, including:
• Goal and Priorities
• Public Art projects
• Petaluma’s Fairgrounds
• General Plan
• Major capital projects + infrastructure investments
• Active Transportation
• Water and Waste-Water Projects
• Successfully promoted LUMA Ice, the City’s first annual outdoor ice rink on the Fairgrounds, across radio, print, and digital media.
• Launched the City of Petaluma’s first official local government podcast, with the aim of demystifying government operations and spotlighting staff. • Restarted a #petalumaproud campaign on social media to highlight achievements and contributions by local residents
• Continued to improve community awareness and input for Capital Improvement Projects (CIP) by building on the great work of FY24 and formalizing communications strategies for all levels of projects.
• Strengthened engagement with Petaluma’s Latinx Community through personal interactions on our Spanish-language Whatsapp channels and a new partnership with Cafe Puente, a local nonprofit focused on supporting the Latinx community.
Information Technology Infrastructure
• Migrated department shared drives to SharePoint.
• Improved help desk operations with reduced response times and more efficient staffing needs. • Completed installation, testing, and go-live of updated, wastewater SCADA environment with improved security measures.
• Improved document processing for PD/Dispatch, resulting in significant time-savings. • Utilized audit results of city telecommunications systems to turn off unnecessary systems, resulting in significant cost savings.
• Improved network security with additional systems that monitor our networks. • Explored options to improve our ability to recover quickly and completely from cyber-security attacks.
Data and Systems
• ERP Selection (RFP, Needs Assessment, Demo, Selection) 125
ECONOMIC DEVELOPMENT & OPEN GOVERNMENT
• Support for department initiatives:
▪ Transit – Lumago
▪ HR –Integrated Laserfiche with Neogov; Implemented SB553 reporting system ▪ Finance – ERP Selection; Maintenance of, and improvements to, existing ERP Software ▪ CDD – Continuous improvement, project management, and training coordination for online permitting system
▪ City Clerk – Established document electronic document management system using Laserfiche Records Management, Implemented Next Request software to manage public records requests
▪ City Attorney – Legal Software assessment
▪ City Manager – Assessed and upgraded Engage Petaluma issue reporting application.
• Staffing – Recruited/staffed 3 open positions (Senior BSA, BSA x2) • GIS – Upgraded GIS system, reviewed system architecture and planned for future needs. • GIS – Implemented new utility network system
• GIS – Implemented hate crime and complaints dashboard
Goals and Priorities
Economic Development
• Focus on economic development to facilitate tenancy in commercial spaces citywide, and increase number of permits approved and facilitated and create a concierge experience in partnership with a ‘strike team’ of the Economic Development, Community Development, City Engineer/Development Engineering, and the City Manager’s office • Develop and implement strategies to ensure Petaluma’s economy is inclusive and equitable. • Make it easier for new businesses to start and grow in Petaluma. • Ensure Downtown Petaluma continues to be a destination that attracts locals and tourists. • Partner with property owners and managers to understand economic trends and develop appropriate strategies for reducing commercial property vacancy rates.
Communications
• Continue to expand and refine our City-wide communication and engagement strategy, with special consideration for the Latinx community.
• Execute communications strategy to support Economic Development goals such as educating small businesses, showcasing Petaluma as a place to move and / or grow your business. • Continue to uplift individual residents from all walks of life to strengthen Petaluma’s sense of community.
• Promote Petaluma’s Fairgrounds as a growing community hub. • Build community engagement around the General Plan Update, which should be approved in Summer 2026.
• Finalize our Emergency Communications Plan in preparation for major disasters and emergencies.
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ECONOMIC DEVELOPMENT & OPEN GOVERNMENT
• Ensure that our website complies with new ADA requirements by March 2026, as mandated by state law.
• Produce an eight-episode 2nd season of our One Petaluma Podcast • Continue to improve community engagement through videos, stories, and regular content on social media.
Information Technology
• Work with Fire Department and Parks and Recreation to assess and plan for technology requirements relative to new and upgraded facility needs (Fire HQ, Aquatic Center). • Complete organization-wide file migration from servers to SharePoint. • Support Fair operations with IT resources and manpower. • Continue key role in ERP replacement.
• Begin replacement of aged-out laptop fleet.
• Identify and select a new Office 365 contract to support City services and provide best value. • Implement cyber security improvement and tools that improve our ability to recover quickly and completely from cyber-security attack.
• Complete necessary system upgrades to comply with updated Criminal Justice Information Services (PD) and National Institute of Standards and Technology (SCADA) monitoring and reporting requirements.
• Continued improvement in Help Desk support model. Improves response times for internal help desk users.
• Replace the discontinued Mainsaver program that supports our water distribution system. • Replace discontinued DHD Environmental Health application. • GIS - Migrate Enterprise GIS to multi machine deployment. • GIS - Fully implement UN across all utilities.
• GIS - Upgrade web experience for internal and public users. • GIS – Complete custom applications for Fire, PD, and PW/FEMA.
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o Performance Measures
Strategic
Goal Description Measure Type
FY
2023/24Measure
FY
2024/25
Target
FY
2024/25
Measure
FY 2025/26
Target
Our
environmental
legacy.
An economy
that prospers
Spaces and
places that
inspire
A city that
works, a safe
community
that thrives
Attract
businesses to
commercial
real estate in
the downtown
and office
parks city-
wide.
# of outreach
efforts to property
owners/managers
5 7 7 7
Our
environmental
legacy
An economy
that prospers
Spaces and
places that
inspire
A city that
works
a safe
community
that thrives
Increase
community
awareness,
particularly
among our
Latinx /
Spanish
speaking
community,
about city
policies,
projects, and
programs
# of followers NA 100
615
100
A City that
Works, A
Safe
Community
that Thrives
Implement
business
systems that
increase staff
productivity
and efficiency
# of consultant
contracts, needs
assessments
NA
Execute 1
consultant
contract,
complete 1
needs
assessment
for ERP
system.
.
Completed.
WorkDay/SpryPoint
selected for ERP
replacement.
Implementation
began City-wide
A City that
Works, A
Safe
Community
that Thrives
Expand our
cybersecurity
program to
prevent any
network
penetration
from cyber
attacks
# of network
penetrations
NA 0 1 1
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Departmental and Program Budget Overview
Key Budget Highlights and Changes by Program
An Economic Development and Open Government Budget of $5,463,603 is recommended for 2025/26.
This represents an increase of $216,863 over 2024/25.
Salaries are recommended at $1,785,494, a decrease of $436,991 from FY 2024/25. This decrease is mainly due to the removal of one internal position in Communications and a few positions changes in the Information Technology division. A portion of the cost reductions are partially offset by increased professional services costs and are meant to streamline communications citywide and assist with improved help desk support to City staff. In addition, the increase is a result of higher overtime and standby costs as well as negotiated cost of living adjustments.
Benefits are recommended at $678,559 representing a decrease of $47,295 from 2024/25. This overall decrease is due to the removal of benefits associated with the positions mentioned above and changes in employee benefit selections, as well as increases for retirement, and workers compensation costs partially offsetting the overall decrease.
Services and supplies are recommended at $2,946,010, an increase of $647,609 from 2024/25. This budget reflects operational services and supplies, hardware and software maintenance contracts, social media services, and various communication and planning services. The increase is mainly due to the removal of in-house communications and IT support staffing costs now partially fulfilled by contracted services as well as increased ongoing costs related to staying up to date with new technology including security and related software licenses. Risk Management charges are also included in this category.
Risk Management charges have declined slightly resulting from a one-time partial rate holiday initiated in the budget development process, to maintain fund reserves at appropriate levels and is not intended to be reoccurring.
By Departmental Program 2024 Actual 2025 Revised 2026 Budget Economic Development 1,113,054 791,505 715,222 General Fund Economic Development 1,113,054$ 791,505$ 715,222$ Less Intragovernmental Offset (633,187) (653,103) (582,225) General Fund Economic Development Net Cost 479,867$ 138,402$ 132,997$ Information Technology 5,141,342 4,455,235 4,748,381 Economic Development and Open Government Net Cost 5,621,209$ 4,593,637$ 4,881,378$ By Account Type 2024 Actual 2025 Revised 2026 Budget
Salary 1,487,288$ 2,222,485$ 1,785,494$ Benefits 466,236 725,854 678,559 Services & Supplies 3,625,872 2,298,401 2,946,010 Capital Expenditures - - - Transfers 675,000 - 53,540 Economic Developement and Open Government 6,254,396$ 5,246,740$ 5,463,603$ Less Intragovernmental Offset (633,187) (653,103) (582,225) Economic Development and Open Government Net Cost 5,621,209$ 4,593,637$ 4,881,378$ 129
ECONOMIC DEVELOPMENT & OPEN GOVERNMENT
Transfers are recommended at $53,540, an increase of $53,540 over 2024/25. This transfer represents funding allocated city-wide for Petaluma Innovate, the City’s lengthy and complex project transitioning to a new Enterprise Resource Planning (ERP) system.
Looking Forward
Economic Development
Opportunities: Petaluma, particularly the downtown area, is well-positioned to take advantage of demand for travel, fine dining, and entertainment. There are exciting new and expanding businesses in the pipeline. We continue to have strong demand for industrial and manufacturing space.
Challenges: Rising costs have reduced profit margins or led to a reduction in sales, which is particularly challenging for smaller, locally owned businesses. To stay competitive in our increasingly online- oriented economy, brick and mortar retailers – in Petaluma and elsewhere – must offer unique items and add services or unique experiences to what they offer. However, state building and fire codes and the City’s zoning requirements often create obstacles to adding experiences/events to retail uses.
Similarly, commercial buildings downtown require expensive upgrades to make them suitable for today’s economy; but property owners cannot generate adequate rents to make the upgrades.
Petaluma’s overall commercial office vacancy rate is higher than it was before the COVID-19 pandemic, although it is still lower than that in neighboring cities. The higher vacancy rate is thought to be due to the widespread adoption of remote work as well as individual companies’ decisions to move their operations out of Petaluma. The high cost of housing in the region continues to put pressure on wages and is making it increasingly difficult for lower wage workers to live/work in Petaluma.
Communications
Opportunities: We have a strong foundation for community outreach & city-wide communications. Our community is engaged and hungry for information and clarity on City processes, and our staffing model is more stable than in past years, with the Comms team now settled into a division of responsibilities and a routine that feels more sustainable and effective.
Challenges: As our team achieves success on multiple fronts, it will be a challenge just to maintain the current pace and quality of our communications, especially as we reduce budgets in the coming fiscal year. The expense & time involved in producing quality, accessible communications will only increase due to inflation, but at the same time, so might expectations for our department to exceed our past achievements – from both management and our residents. This may be especially challenging as government trust is tested by local initiatives and current events on the national stage. We may enter FY26 with strong headwinds and will have to work hard simply to maintain the community trust we’ve built so far.
Information Technology
Opportunities: We have made significant improvements to our network and security infrastructure, which puts us in a good place for the year ahead. We have a strong team that consists of full-time employees and embedded contractors, which gives us flexibility to scale up or down depending on our needs. All departments continue to seek new ways to leverage state-of-the-art software systems to 130
ECONOMIC DEVELOPMENT & OPEN GOVERNMENT
improve efficiency, develop metrics and provide enhanced service to the community. The implementation of a new system allows staff opportunity to fully reevaluate and modernize its processes to better meet the demands of the current environment.
Challenges: Cyberattacks pose a serious threat, despite the continual fortification of our network.
Remote work can hinder staff access to city digital resources, which can affect productivity. During the transitional period, productivity likely will decline before realizing gains as staff learn new systems, adjust system configurations that need tweaks after go-live, and adjust their existing workflows to better fit the new system. Departmental staff involvement is critical for successful implementation, and placing the stress of learning, configuring, and roll out of a new system puts additional stress on a staff which must add these additional responsibilities to their existing workload.
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132
FINANCE
Finance Department
133
FINANCE
Description
The Finance Department oversees the management and operations of the financial and commercial services functions of the City. Functional divisions within the Department include Finance Administration and Budget, Accounting, and Commercial and General Services.
The Finance Administration and Budget Division provides oversight of the Department and coordinates the preparation of the City’s annual budget. The City’s long -term financial planning process is also facilitated in this Division. Financial consulting services are also provided to the City Manager and City Council.
The Accounting Services Division provides financial services for the City and is responsible for maintaining the City’s accounting, payroll, and accounts payable systems . The Division is also responsible for grant fiscal management, capital asset reporting and the treasury function. The Team’s primary objective is maintenance of complete and accurate financial records, safeguarding of City assets, implementation of effect ive internal controls and accurate and timely payments to vendors and employees. Financial records are maintained in compliance with Generally Accepted Accounting Principles and the City’s Retention Policy . The group works with the City’s independent audit or and produces the Annual Comprehensive Financial Reports and Single Audit Reports. The Division provides information to outside agencies, City staff, the City Manager and the City Council.
In the Finance Department, the Commercial Service division is responsible for revenue generating billing, cashiering, receivables and collection, and customer service activities. Staff is split between cashiering and deposit operations and billing and collection functions. The department handles over 240,000 billing transactions per year and processes over 600 receipts per day. The City has approximately 5,300 business licenses generating approximately $1.4M in annual revenues to the General Fund. A primary goal for the department will be the development of more online payment options for customers.
Major Accomplishments and Highlights
• Received the Government Finance Officers Association Award for Excellence in Financial Reporting for prior fiscal year
• Received the Government Finance Officers Association Distinguished Budget Presentation Award for Fiscal Year 2024-25
Mission Statement
The Finance Department is committed to providing accurate and timely budgeting and reporting, clear and concise information delivery and support to City Council, City Manager, City departments, and the community. We are dedicated to a service-oriented team approach to providing financial information that meets fiduciary and regulation responsibilities all in the spirit of financial transparency. 134
FINANCE
• Successfully promoted use of Low-Income Household Water Assistance Program (LIHWAP) to customers, thereby avoiding many water turn-offs
• Processed an increased volume of water leak adjustments due to increased customer water usage awareness driven by Water Conservation’s ongoing outreach • Continue implementation of strategies to reduce costs when and wherever possible • Ongoing improvement of budget document to provide additional transparency and ease of understanding for the reader
• Researched and selected ERP system that offers enhanced online payment options • Added newly purchased Advanced Metering Infrastructure (AMI) water meters to accounts on a monthly basis per installation schedule, completing substantial portion of the customer base Goals and Priorities
• Configure, test, and go live with Workday and SpryPoint software to replace the City’s current ERP system, Tyler Eden
o Configuring system to leverage customer portal capabilities with improved electronic payment and deposit features
• Provide City-wide training on the new software products for financials and utility billing • Ensure that City customers and suppliers have information on new systems and how to utilize them to make or receive payments
• Review current business processes and implement updates to maximize efficiency • Partner with the City Manager’s Office to bring green considerations into the procurement process
• Partner with Human Resources and City Attorney’s Office on creation of an internal handbook of policies and procedures
Performance Measures
Strategic
Goal Description
Measure
Type
FY 2023/24
Measure
FY 2024/25
Target
FY 2024/25
Measure
FY 2025/26
Target
A City That
Works
Receive the GFOA
Award for Excellence
in Financial Reporting
and Distinguished
Budget Award
Outcome Awards
Received
Submit
application and
receive awards
Awards
Received
Submit application
and receive
awards
A City That
Works-
Fiscal
Sustainabilit
y
Update long term 5-
year forecast twice
per year and present
to City Council
Outcome Updated and
presented to
Council
Update forecast
with new
adopted Budget
at Mid-Year and
present to
Council
Updated and
presented to
Council
Update forecast
with new adopted
Budget at Mid-
Year and present
to Council
A City That
Works
Implement and
convert to new ERP
system
Outcome In Process RFP Issued and
Consultant
Selected
RFP Issued
and Consultant
Selected
Conversion
Initiated
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FINANCE
Strategic
Goal Description
Measure
Type
FY 2023/24
Measure
FY 2024/25
Target
FY 2024/25
Measure
FY 2025/26
Target
A City That
Works
Improve access to
general billing
payments online
Outcome In process Improve online
payment
options for
Business
License and
Accounts
Receivable
Ongoing Ongoing
A City That
Works
Review City fees and
prepare to initiate fee
study
Outcome
N/A
Initiate Review
of City Fees
City Fees
Reviewed
Fee Study initiated
and new Fees in
place
Preserve
and Protect
Petaluma’s
Environment
Implement Advanced
Metering
Infrastructure (AMI)
water meters
Outcome
Determine
strategy to
meet
customer
needs
Work with
Public Works to
order inventory
and begin
installation
phase
Large portion
of installation
work
completed,
customer use
commencing
Full completion of
AMI water meter
installation, with
customer use
increasing over
time
Departmental and Program Budget Overview
By Departmental Program 2024 Actual 2025 Revised 2026 Budget Finance Administration 1,188,282$ 1,154,736$ 1,183,129$ Finance Accounting Services 1,162,980 1,179,968 1,366,539 Finance Commercial Services 705,499 880,011 792,538 General Fund Finance 3,056,761$ 3,214,715$ 3,342,206$ Less Intragovernmental Offset (1,503,048) (1,796,131) (2,071,778) General Fund Finance Net Cost 1,553,713$ 1,418,584$ 1,270,428$ General Services-Administration 13,861$ 19,264$ 24,832$ General Services-Mail Services 73,745 67,645 78,375 General Services-Printing Services 58,702 72,075 64,126 Non General Fund Finance Net Cost 146,308$ 158,984$ 167,333$ Finance Dept Net Cost 1,700,021$ 1,577,568$ 1,437,761$ By Account Type 2024 Actual 2025 Revised 2026 Budget
Salary 1,750,867$ 1,913,642$ 1,986,820$ Benefits 587,500$ 703,498 774,772 Services & Supplies 864,702$ 756,559 741,382 Capital Expenditures -$ - - Transfers -$ - 6,565 Finance Department 3,203,069$ 3,373,699$ 3,509,539$ Less Intragovernmental Offset (1,503,048) (1,796,131) (2,071,778) Finance Department Net Cost 1,700,021$ 1,577,568$ 1,437,761$ 136
FINANCE
Key Budget Highlights and Changes
A Finance Department budget of $1,437,761 is recommended for 2025/26. This a decrease of $139,807 from the 2024/25 revised budget.
Salaries are recommended at $1,986,820, representing an increase of $73,178 over 2024/25. This increase is primarily due to negotiated cost of living adjustments and step increases.
Benefits are recommended at $774,772, representing an increase of $71,274 over 2024/25. This change is primarily attributed to increased retirement costs and employee benefit selections.
Services and supplies are recommended at $741,382, a decrease of $15,177 from 2024/25. This category is mainly for audit, banking and online bill pay services, armor truck services, and equipment lease and intragovernmental charges. The decrease primarily represents a reduction in membership fees that are no longer needed.
Transfers of $6,565 are recommended for FY 2025/26, representing funding allocated city-wide for Petaluma Innovate, the City’s lengthy and complex project transitioning to a new Enterprise Resource Planning (ERP) system.
Looking Forward
There are several initiatives and ongoing challenges the Finance Department will be working on over the next year and beyond. In alignment with the Council Goals and to ensure the City maintains fiscal sustainability into the future, the Finance staff will work with the City Manager and other departments to develop funding strategies to continue moving City projects forward. This includes finding potential financing options to facilitate the funding of various projects and programs.
The Finance Director along with other members of the finance department and other City departments will continue to look for ways to provide efficient and cost-effective services to the organization and the community.
Finally, the General Fund long-term forecast has proven to be a highly valuable tool for preparing for the future. The forecast assists with closely monitoring the General Fund’s financial condition as revenue and expenditure trends change. The forecast is updated twice per year and takes into consideration the economic environment and associated impacts on revenues and expenditures. In addition, updates that include changes to labor agreements, benefits, and service costs are included biannually.
137
FINANCE
138
FIRE
Fire Department
139
FIRE
Description
The Petaluma Fire Department is an all -risk agency responsible for the prevention and extinguishment of fires, medical treatment and transport of the sick and injured, victim extrication and rescue, and the overall mitigation of emergency events impacting the health, welfare, and safety of our citizens and visitors. Founded in 1857, the Department recently celebrated its 168th year of service.
The Department oversees all emergency operations, including fire suppression, emergency medical care, transport, and rescue. Beyond the city limits, our ambulances provide emergency care and transport across much of South Sonoma County and parts of Marin County.
The Fire Prevention Bureau (FPB) offers fire and life safety education to all community age groups while enforcing local and state laws to protect life, the environment, and property. The FPB ensures new developments comply with safety codes to safeguard Petaluma’s residents and visitors. The Bureau also regulates hazardous materials through the Certified Unified Program Agency (CUPA) inspection program and works to reduce vegetation that may fuel wildfires.
The City's Emergency Management program, managed by the Fire Department, has made significant progress since the appointment of the first full-time Emergency Manager in FY 22/23. This position has been crucial in strengthening preparedness and response acr oss all City departments and community partners.
As part of our ongoing commitment to Diversity, Equity, and Inclusion (DEI), the Fire Department inspires the next generation of Petaluma firefighters through outreach in schools, civic events, partnerships with community organizations, and our part-time EMT program.
As Petaluma's population grows and changes, calls for service have increased beyond projections. Last fiscal year, the Department responded to over 8,800 calls, a 2.5% increase from the previous year. In response to the CPSM recommendations on staffing and facilities, the Department is exploring new staffing models, deployment strategies, and other initiatives to minimize response times and ensure personnel availability during peak demand periods and critical situations.
Mission Statement
The Petaluma Fire Department Is Committed to Professional Excellence Through a Tradition of Protecting Lives, Property, and the Environment by Providing the Highest Quality of Service in Prevention, Fire Protection, Emergency Medical Services, and Community Preparedness. 140
FIRE
Major Accomplishments and Highlights
In FY25, the Fire Department made significant progress by implementing recommendations from the 2022 Comprehensive Analysis conducted by the Center for Public Safety Management (CPSM). Key accomplishments include:
• Ambulance & Fire Engine Upgrades: In the summer of 2024, our oldest ambulance, a 2012 model, had its patient compartment refurbished and remounted onto a new cab and chassis, saving significant costs. We also ordered a new fire engine, expected to arrive in approximately three years, and received a donated Type 3 wildland fire engine from Marin County. • EMS Coordinator Position: The City made the limited -term EMS Coordinator position permanent after successfully filling it for a year.
• Public Safety Facilities Master Plan: Significant planning and design work was completed for the seismic upgrade and safety improvements at the D Street Fire Station, with construction slated for summer 2025. A temporary fire station has been secured to maintain emergency coverage during the D Street project. Further implementation of the master plan will place the ladder truck in a central location, add an emergency operations center, and implement safety/diversity upgrades at the station.
• Measure H Funding: With the passage of Measure H, the City began receiving annual funds that will support critical initiatives, including the construction of a new centrally located fire station, full- time staffing for the ladder truck, and wildfire reduction programs. • Ambulance Revenue Growth: Ambulance revenues have more than doubled over the last five years, partially due to a federal reimbursement program covering a portion of the gap for Medi - Cal patients. This increase helped fund the full-time civilian EMS Coordinator, who oversees EMS logistics and program management. This position has been crucial in developing alternative staffing models, deployment plans, and strategies to reduce response times and ensure personnel availability during peak demand.
• Fire Prevention Bureau Audit & Vegetation Management: This year, the Fire Department conducted an audit of the Fire Prevention Bureau to assess workload and capacity. We expanded pilot vegetation management programs and successfully reduced hazardous fire loads in the west-side community. The program, which included curbside pickup, chipping, and disposal of vegetation material, served over 75 households and removed nearly 100 cubic yards of brush.
The program will continue to expand, focusing on defensible space inspections and additional support for homeowners.
Goals and Priorities
• Implement CPSM Recommendations: Continue prioritizing and implementing best-practice recommendations from the 2022 CPSM Comprehensive Analysis. • Public Safety Facility Master Plan: Advance priority components of the Public Safety Facility Master Plan, with a focus on adding a new fire station and Emergency Operations Center (EOC), completing the seismic upgrade and remodel of the D Street Fire Station, and upgrading all facilities t o reduce response times, increase member privacy, accommodate a more diverse workforce, and achieve carbon neutrality.
141
FIRE
• Fire Department Fleet Management: Continuously assess the Fire Department fleet’s age, condition, and replacement options to ensure reliable service. Plan for fleet maintenance while exploring carbon-neutral alternatives as technology evolves. • Emergency Service Demand & EMS Strategies: Regularly monitor emergency service demand and leverage EMS administrative capacity to implement staffing strategies that improve response times and patient outcomes.
• Fire Prevention Bureau & Wildfire Risk Reduction: Continue evaluating opportunities to strengthen and reimagine the Fire Prevention Bureau’s mission of community risk reduction, with a focus on enhancing wildfire risk reduction efforts.
Performance Measures
Strategic
Goal Description
Measure
Type
FY
2023/24
Measure
FY 2024/25
Target
FY 2024/25
Measure
FY 2025/26
Target
A City That
Works
Revenue cost
recovery from
ambulance
program
$ received $6,865,477 $6,077,148 $7,051,061
(est.)
$6,684,863
A City That
Works
EMS Training hours # hours 1,368 1,368 1,368 1,368
A City That
Works
Ambulance mutual
aid received
# incidents 89 <50 59 <50
A City That
Works
Completed Fire
Inspections
#
inspections
unknown 2,856 2,002 2,856
A City That
Works
Emergency
Response Time
90th percentile
(target is that 90%
of response times
are less than 5
minutes)
time 7:16 < 5:00 6:56 < 5:00
142
FIRE
Departmental and Program Budget Overview
Key Budget Highlights and Changes by Program
The recommended Fire Department and Measure H budget for 202 5/26 is $29,140,787. This is a n increase of $1,501,086 over 2024/25.
Salaries are recommended at $ 12,902,441. This comparative decrease of $ 468,166 from 2024/25 is mainly attributed to the prior year revised budget including a $1.2 million fire suppression fire strike team overtime midyear budget adjustment increase which was not carried forward to the 2025/26 budget , partially offset by increases for negotiated cost of living adjustments anposition step advancements.
Benefits are recommended at $ 10,146,075, an increase of $ 682,526 over 202 4/25. This increase is primarily due to negotiated cost increases impacting benefits, employee benefit selections, and increases in retirement benefit costs.
Services and supplies are budgeted at $2,541,571. This comparative decrease of $152,119 from 2024/25 is mainly attributed to the prior year revised budget including a $665k mid-year budget increase for ambulance service contract employee charges with just a portion carrying forward to 2025/26, partially offset by an increase in billing service program costs . The services and supplies budget is mainly for By Departmental Program 2024 Actual 2025 Revised 2026 Budget Fire Administration 2,914,545$ 2,671,395$ 2,429,340$ Fire Disaster Preparedness 22,943 10,000 10,000 Fire Hazardous Materials 555,931 555,959 633,426 Fire Prevention 684,133 662,141 740,050 Fire Suppression 12,882,781 14,367,115 14,011,764 Fire Suppression-apparatus 330,159 198,645 122,080 Fire Suppression-building/grounds 126,544 41,725 19,500 Fire Suppression-communications 9,510 21,400 21,400 Fire Suppression-supplies 119,590 63,115 53,500 Fire Suppression-training 37,352 17,800 17,800 Ambulance 6,724,517 7,098,406 7,230,799 General Fund Fire Department 24,408,005$ 25,707,701$ 25,289,659$ Measure H -$ 1,932,000$ 3,851,128$ Total Fire Department and Measure H 24,408,005$ 27,639,701$ 29,140,787$ By Account Type 2024 Actual 2025 Revised 2026 Budget
Salary 11,684,376$ 13,370,607$ 12,902,441$ Benefits 9,040,748 9,463,549 10,146,075 Services & Supplies 3,414,816 2,693,690 2,541,571 Utilities 63,601 54,700 64,700 Capital Expenditures 204,464 125,155 881,000 Transfers - 1,932,000 2,605,000 Fire Department 24,408,005$ 27,639,701$ 29,140,787$ 143
FIRE
dispatch services, software support, fire suppression equipment maintenance and repairs, fire station supplies, building maintenance and repairs, and employee training and education. Risk Management and Information Technology intragovernmental charges are also included in this category. Information Technology charges are unchanged from the prior year and cover costs necessary to stay up to date with current technology/security needs. Risk Management charges have declined slightly resulting from a one-time partial rate holiday initiated in the budget development process, to maintain fund reserves at appropriate levels and is not intended to be reoccurring.
Utilities are budgeted at $ 64,700. The $10,000 increase over FY 2024/25 is primarily due to projected rate increases.
Capital Expenditures are recommended at $881,000, an increase of $755,845 over 2024/25 . This increase primarily reflects Measure H funded station alerting systems and radio repeater infrastructure improvements as well as ambulance remount equipment.
Transfers out are recommended at $2,605,000, an increase of $673,000 over the prior year. The transfer is for Fire Station 1 CIP seismic, safety, and privacy upgrades.
Looking Forward
With the successful completion of the Fire Department’s Comprehensive Analysis, the Public Safety Facilities Strategic Master Plan, and the passage of Measure H for the Fire Safety 1/2 cent sales tax, we are now presented with an exciting opportunity to implement key recommendations. In the coming year, our focus will be on improving facilities, starting with seismic upgrades and other safety enhancements at the D Street Fire Station. Additionally, we will continue planning and designing a centrally located public safety facility, which will include an Emergency Operations Center. These efforts will help us better meet the evolving needs of our growing community.
144
HUMAN RESOURCES
Human Resources Department
145
HUMAN RESOURCES
Description
The Human Resources and Risk Management Department is committed to delivering outstanding customer service that reflects our commitment to professional excellence.
The Human Resources Division provides professional leadership and services to City departments to attract, develop, motivate, and retain a skilled workforce within a competitive environment. These services include talent acquisition, employment engagement, learning and organizational development, performance management, labor and employee relations, and benefits and leave administration.
Furthermore, the Division ensures the City’s employment practices are in compliance with applicable federal, state, and local laws as well as the various collective bargaining agreements between the City and the representative labor unions.
The Risk Management Division supports City solvency and conserves City resources in alignment with Petaluma’s values. Risk Management works to protect the City and all its assets from risk, and to support City Council’s priorities and goals through sound risk management practices. The Risk Management team accomplishes this through efficient and effective claims management, litigation support, insurance policy management, contract reviews, ADA coordination, and effective Risk transfer through insurance requirements in contracts. Through a collaborative approach, Risk Management assists its partners with identifying and understanding their hazards; advising on practical solutions to protect employees and community members; and promoting wellness all while recommending transfer risk where appropriate, optimizing financing for coverage, and managing casualty and property claims.
Major Accomplishments and Highlights
• Fostered a continuous learning environment and built an effective workforce by developing and implementing employee development initiatives including bolstering our talent pipeline through a formal internship program and the inaugural Petaluma Academy. • Successful completion of three major reorganizational efforts of Information Technology Division, Public Works Department, and Water Resources and Utilities Department. • Updated various workplace policies focusing on fostering a positive workplace, including the implementation of SB 553 Workplace Violence Prevention Plan Policy. • Transformation of the Risk Management Division by engaging in effective risk management best practices to include, but not limited to, identification of potential risks by early engagement with the departments; implementation mitigation strategies; monitoring risks continuously; fostering a risk-aware culture; and implementation of Workers’ Compensation multi-disciplinary case management.
Goals and Priorities
• Implementation of Workday, an enterprise resource planning (ERP) system that helps business management of finance, Human Resources and operations.
Mission Statement
We serve, support, and advise City team members using forward thinking methods that are impactful and compliant to achieve City goals and objectives.
146
HUMAN RESOURCES
• Continuation of the Petaluma Academy by creating the next layer of foundation for success with the introduction of the Petaluma University.
• Support fiscal sustainability by reassessing excess coverage options to optimize self-insurance program.
• Promote staff health and wellness by continuing to enhance the City’s Wellness Program.
Performance Measures
Strategic
Goal Description Measure Type
FY 2023/24
Measure
FY 2024/25
Target
FY 2024/25
Measure
FY
2025/26
Measure
A City that
Works
Process applications
received and screened
to attract qualified
personnel
# of applications
received and
screened
1583 1000 891 2500
A City that
Works
Advertise, open and
process recruitments
# of recruitments 75 75 61 75
A City that
Works
Process new hires and
promotions
# of new hires
and promotions
93 (FTE)
35 (PT)
80 (FTE)
40 (PT)
70 (FTE)
13 (PT)
95 (FTE)
35 (PT)
A City that
Works
Process all
separations
(retirements,
resignations, etc.)
# of separations
(retirements,
resignations, etc.)
59 50 40 55
A City that
Works
Process all
subrogation
# of subrogation
processed t
35 claims for
a value of
$165,349
30 claims for
a value of
$150,000
12 claims for
a value of
$192,454
6 claims
closed @
$62,267
Departmental and Program Budget Overview
By Departmental Program 2024 Actual 2025 Revised 2026 Budget Human Resources Administration and Operations 1,114,949$ 1,279,341$ 985,277$ Less Intragovernmental Offset (544,535) (581,506) (643,670) General Fund Human Resources Administration/Operations Net Cost 570,414$ 697,835$ 341,607$ Employee Benefit-administration 260,275 286,727 246,929 Employee Benefit-retiree benefits 316,619 335,507 333,167 Employee Benefit-unemployment 30,135 30,000 27,701 Employee Benefit-other 80,362 534,926 534,926 Workers Compensation 4,758,629 3,760,805 3,726,427 Employee Benefits 5,446,020 4,947,965 4,869,150 Risk Mgmt Administration and Operations 1,508,296 3,687,515 4,278,548 Risk Management Admininstration and Operations 1,508,296 3,687,515 4,278,548 Human Resources Department Net Cost 7,524,730 9,333,315 9,489,305 By Account Type 2024 Actual 2025 Revised 2026 Budget
Salary 721,644$ 1,026,069$ 1,060,917$ Benefits 548,403 762,012 693,904 Services & Supplies 6,799,218 8,126,740 8,326,134 Transfers - - 52,020 Human Resources Department 8,069,265$ 9,914,821$ 10,132,975$ Less Intragovernmental Offset (544,535) (581,506) (643,670) Human Resources Department Net Cost 7,524,730$ 9,333,315$ 9,489,305$ 147
HUMAN RESOURCES
Key Budget Highlights and Changes by Program
Key budget highlights in Human Resources and Risk Management are essentially all costs associated with attracting, retaining, and managing the City’s workforce as People First investment. Every effort is made to align the Human Resources and Risk Management budget directly to support the City Council’s strategic objectives and business priorities. The budget reflects financial and human capital stewardship by being accountable for the resources entrusted.
A Human Resources Department budget of $10,132,975 is recommended for 2025/26. This represents an increase of $218,154 over 2024/25.
Salaries are recommended at $1,060,917 for 2025/26 representing an increase of $34,848 over 2024/25. This increase is due to negotiated cost of living adjustments and employee benefit selections.
Benefits are recommended at $693,904 for 2025/26 representing a decrease of $68,108 from 2024/25.
This is attributed to a slightly reduced employee wellness benefit, employee benefit selections and increased retirement and workers compensation costs.
Services and supplies are recommended at $8,326,134 for 2025/26, an increase of $199,394 over 2024/25. This budget is mainly for a consultant labor negotiator, compensation study, employee education and training, pers interfund loan paydown, insurance premiums, and risk and workers compensation settlements. The increase is largely due to a significant increase in risk insurance premiums in the coming year. Other smaller changes are related to increased Administration, Risk Management and Technology intragovernmental charges. Information Technology charges are unchanged from the prior year and cover costs necessary to stay up to date with current technology/security needs. Risk Management charges have declined slightly resulting from a one-time partial rate holiday initiated in the budget development process, to maintain fund reserves at appropriate levels and is not intended to be reoccurring.
Transfers are recommended at $52,020, an increase of $52,020 over 2024/25. This transfer represents funding allocated city-wide for Petaluma Innovate, the City’s lengthy and complex project transitioning to a new Enterprise Resource Planning (ERP) system.
Looking Forward
The Human Resources and Risk Management Department delivers innovative services as a strategic thought partner and remains committed to providing excellent service to City staff and the community across all departmental programs. The department strives to foster an environment where all are mutually respected, valued, and empowered and is dedicated to streamlining processes and advancing efficiency through innovative tools and technology.
148
NON-DEPARTMENTAL
Measure U Cost Center
In 2019, the City commenced a concerted, two-pronged community engagement effort to address the City’s long-term fiscal and organization sustainability by gathering as much community feedback as possible about City services and priorities. In response to the City’s outreach efforts, Petaluma community members identified priorities for enhanced locally controlled funding. This general transaction and use tax measure known as the City of Petaluma local recovery, emergency preparedness and essential services measure is intended to maintain emergency health/wildfire/natural disaster preparedness; rapid 911 emergency response, fire protection services, homeless prevention, provide for well-trained community police officers, streets/pothole repair, clean/safe public areas, support for local businesses/jobs and other city services. Petaluma voters approved the tax measure in November of 2020. This is a general tax that became effective April 1, 2021.
The Measure U Committee reviews the fiscal year end results as well as the upcoming proposed appropriations annually. The Committee reviewed the FY 2025-26 proposed Measure U budget on April 17, 2025. All Committee reports can be found at cityofpetaluma.org/meetings. The next report for FYE 2024-25 will be available and presented to the Committee in January of 2026.
Measure U Budget
Measure U sales tax revenues are estimated at $ 15.7M for FY 25-26, just slightly greater than the prior year by approximately 1%. We expect slow to moderate growth to continue into the new fiscal year. We remain conservative given the uncertainty of the economy and will continue to monitor revenues closely and adjust as more information is received.
A Measure U budget of $15,708,000 is recommended for 2025-26. Funds are transferred to the applicable fund where the costs reside.
The primary function of Measure U is to maintain and bolster existing service levels. For many years, the City has relied on the General Fund 5-year forecast which has proven to be accurate, assisted with long-term financial planning and allowed us to pivot and be proactive in addressing any emerging trends. As costs change from year to year, the City must evaluate the needs, available resources and determine the best plan for the immediate future . Over approximately the next 5 years, a significant portion of Measure U funds , along with other General Fund 1115 Measure U Sales Tax 2024 Actual 2025 Revised 2026 Budget Services & Supplies 21,495,395$ 15,683,299$ 15,708,000$ Transfers
Measure U Sales Tax 21,495,395$ 15,683,299$ 15,708,000$ Investment Themed Categories: FY 2025/2026
General Fund Support- Maintain Service Level Funding for existing operations; new operational needs 14,691,329$ Infrastructure Investments and Priority Initiatives
Roads and/or Public Safety Facility; Technology- ERP
Replacement; Fare Free Transit Program; Sidewalk Repair Program; Lucchesi Turf Field Replacement Project 1,016,671$ Total Measure U Investments 15,708,000$
149
NON-DEPARTMENTAL
revenues, will serve to bolster existing programs and services and ensure that additional budget cuts or service reductions are avoided. Looking out past the 5-year forecast, costs are expected to s ubside some, the result of less required retirement contributions following a mandated discount rate reduction and increased plan c ontributions initiated nearly a decade ago by CalPERS, impacting all participating agencies. It is expected, in the long term, that costs will be substantially less as a result of all plans being fully funded.
The General Fund Support category includes workforce stabilization, which is essential for delivering services to the Community. Rebuilding, stabilizing, and improving the City workforce through the initiatives will improve City services. This is vital to be successful in initiating new programs and projects in the community. New positions to maintain service levels and meet rising demand are essential to the sustainability of the city in the long-term long term. In addition to core staffing, providing clas sification and compensation comparable to market and neighboring agencies as well as providing for annual cost of living adjustments ensures the City is able to can successfully recruit and retain highly qualified staff.
Infrastructure investments provide the resources necessary to jump- start the road maintenance and reconstruction program that is significantly needed in Petaluma. The City successfully issued $20m of bonds to front -load the road maintenance effort. Fundin g the program up front provided the resources necessary to improve City streets immediately and have the most positive impact on PCI, preventing further deterioration of City streets and additional increased costs to repair. Finally, priority initiatives include $366,671 of funding for future debt service and fare-free public transit, along with $650,000 for the Sidewalk Repair Program and Turf Field Replacement at Lucchesi.
More information about Measure U can be found in the Measure U overview section of this narrative.
Non-Departmental Description
The Non-Departmental budget provides for General Fund expenses which are of a citywide benefit and/or not more appropriately charged to any other budget, such as Petaluma’s dues for agencies such as Association of Bay Area Governments (ABAG), Local Agency Formation Commission (LAFCO), and the League of California Cities. Appropriations are also used to offset anticipated employee separation costs, and/or to budget monies held in reserve for anticipated employee salary adjustments.
Non-Departmental Budget
A Non-Departmental budget of $989,600 is recommended for 20 25/26. This is a decrease of $11,400 from 2024/25.
11800 Non Departmental 2024 Actual 2025 Revised 2026 Budget Salary
Benefits 400,000 400,000
Services & Supplies 602,747 601,000 589,600 General Fund Non Departmental 602,747$ 1,001,000$ 989,600$ 150
NON-DEPARTMENTAL
Salaries and b enefits are recommended at $ 400,000, no change from the prior year. Funding for costs incurred when an employee separates employment from the City continues to be included. As the year progresses, and more specifics are finalized, the appropriations held in this non-departmental category will be moved to each general fund department budget where costs reside.
Services and supplies of $ 589,600 are recommended, a slight increase from 202 4/25, and reflects costs for the animal control services that are currently contracted out as well as dues and membership costs.
General Fund Cost Center
The General Fund cost center contains activity related to transfers in and out of the General fund.
General Fund Cost Center Budget
A General Fund budget of $1,751,118 is recommended for 2025/26. This represents an increase of $343,611 over 2024/25.
There are no salaries or benefits budgeted in this cost center.
Transfers Out are budgeted at $1,751,118 for 2025/26, an increase of $343,611 over 2024/25.
Transfers out include funding of $528,473 to support Storm Water operating costs in the Storm Water fund, $93,580 to the Waste water fund for settlement costs, $71,454 to the CIP for LED Streetlight Interfund Loan payback, $500,000 to the Vehicle Replacement Fund to fund the annual lease payment for vehicles necessary to perform city-wide services, $369,651 for the General Plan update funded by fee revenues dedicated for this purpose and $187,960 for the city-wide Enterprise Resource Planning (ERP) system conversion representing funding allocated city-wide for Petaluma Innovate, the City’s lengthy and complex project transitioning to a new Enterprise Resource Planning (ERP) system.
Transient Occupancy Tax- Community Promotion
The City assesses a transient occupancy tax (TOT) of ten percent (10%), on stays of 30 days or less, at hotels, motels, inns, RV parks and campgrounds, and short-term vacation rentals.
The City also collects an assessment of two percent (2%) for the County of Sonoma’s tourism program. The City Council can use TOT proceeds for any governmental purpose, retains a share to fund basic City services, and uses proceeds to support activities that encourage tourism, lodging, and economic development.
TOT funding is also retained by the City to help support the City’s Economic Development program, is budgeted for downtown beautification, downtown sidewalk maintenance and repair, and supports ongoing annual contributions to the City’s Vehicle Replacement Fund. 11100 General Fund General Department 2024 Actual 2025 Revised 2026 Budget Benefits
Services & Supplies
Transfers 3,881,251 1,407,507 1,751,118
General Fund General Department 3,881,251$ 1,407,507$ 1,751,118$ 151
NON-DEPARTMENTAL
TOT funds are also allocated to pay for city staff time supporting special events for park maintenance and for a variety of one-time uses including capital projects and special studies.
TOT funds are accounted for in a dedicated fund, where revenues accrue, services are charged, and transfers to other budgets are appropriated.
Transient Occupancy Tax Budget
A Transient Occupancy Tax budget of $3,776,475 is recommended for 2025/26. This represents a decrease of $518,792 from the revised budget for 2024/25. One-time uses recommended for 2025/26 are itemized below. Transfers to the General Fund of $2,350,000 continue to be included as well as additional transfers of $309,484 for a loan payback initiated in FY 2023 to fund the Turning Basin Docks Project. Also included are transfers of $200,000 for the Petaluma River Dredging Program, $200,000 for the Lucchesi Skate Park project and $369,210 for the city-wide Enterprise Resource Planning (ERP) system conversion project.
It is recommended that annual revenues accruing to this fund continue to fund the ongoing efforts noted in the narrative, as a means of helping to offset escalating salary and benefit costs in the General Fund. The nature of the economy has impacted the tourism industry over the past few years and thus revenues to the fund have been impacted. The fund is expected to recover in FY 25 however due to the uncertainty of the economy and pace of recovery in the tourism industry, staff will continue to monitor the fund closely as the year progresses and bring adjustments forward as necessary.
Projects Recommended
Petaluma River Dredging Program $200,000
Lucchesi Skate Park $200,000
ERP System Replacement $369,210
Petaluma Tourism Improvement District
The Petaluma Tourism Improvement District was established in January of 2019 and is managed by the Tourism Improvement District. Each hotel and lodging establishment is assessed a two percent tax which is used to fund marketing campaigns and district development projects. A portion of the 2% collected is paid to the City to be utilized for district approved projects.
Petaluma Tourism Improvement District Budget
2520 Transient Occupancy Tax 2024 Actual 2025 Revised 2026 Budget Services & Supplies 974,119$ 700,738$ 347,781$ Transfers 3,293,276 3,594,529 3,428,694 Transient Occupany Tax 4,267,395$ 4,295,267$ 3,776,475$ 2525 Petaluma Tourism Improvement District 2024 Actual 2025 Revised 2026 Budget Services & Supplies 14,577$ 184,700$ 4,530$ Transfers 300,380$
Petaluma Tourism Improvement District 14,577$ 184,700$ 304,910$ 152
NON-DEPARTMENTAL
A Petaluma Tourism Improvement District budget of $304,910 is recommended for 2025/26, which is a $120,210 increase over 2024/25. Appropriations recommended support the cost of the Downtown Bathroom Project and city-wide allocation for the Enterprise Resource Planning (ERP) system conversion project. As the year progresses and projects and/or programs are identified and funding becomes available, a budget adjustment utilizing fund balance may be brought forward.
Vehicle and Equipment Replacement
This fund accounts for the accumulation of resources and related expenses incurred for the replacement of major equipment and vehicles in the City. The fund tracks general government vehicle and equipment purchases. Enterprise vehicle purchases reside in each of the Enterprise Funds. For a comprehensive list of all Capital Assets purchases recommended in the budget, please refer to the summary schedules in the summary section of this document.
Vehicle and Equipment Replacement Budget
A Vehicle and Equipment Replacement budget of $ 590,810 is recommended for 2025/26. This represents a decrease of $2,657,938 from the revised budget for 2024/25.
Capital Expenditures are recommended at $575,000, a decrease of $2,673,748 from 2024/25.
This includes the cost of existing capital leases. No new vehicles are appropriated from this fund in FY 2025/26.
Transfers are recommended at $15,710, an increase of $15,710 over 2024/25. This transfer represents funding allocated city-wide for Petaluma Innovate, the City’s lengthy and complex project transitioning to a new Enterprise Resource Planning (ERP) system.
7500 Vehicle & Equipment Replacement Fund 2024 Actual 2025 Revised 2026 Budget Services & Supplies 1,039,519$ 100$
Capital Expenditures 3,248,748 575,000
Transfers 15,710
Vehicle Replacement Fund 1,039,519$ 3,248,748$ 590,810$ 153
NON-DEPARTMENTAL
General Government Debt
2021 Lease Revenue Bonds (Road Improvement Projects Measure U) The City of Petaluma is responsible for maintaining approximately 396 lane miles of paved roads.
Due to funding shortfalls over many years, the backlog of deferred road and street maintenance projects has grown to more than $100 million. Consequently, th e City’s streets now have an average overall Pavement Condition Index (PCI) of 42 out of a maximum score of 100, which indicates the City’s network of streets is in ‘poor’ condition. In the last Pavement Condition Index published by the Metropolitan Trans portation Commission in 2019, Petaluma had the worst roads among all Bay Area jurisdictions.
With the recent passage of Measure ‘U’ by Petaluma voters in November 2020, the City now has the financial resources with which to address the Community’s priorities which include addressing the backlog of deferred road and street maintenance projects. Toward that end, the issuance of the Lease Revenue Bonds provide d $20 million for road reconstruction and rehabilitation, asphalt overlays, bike, pedestrian, and other multi -modal and safety improvements, structural overlays, slab replacement and sealing, among other measures.
The Bonds are tax-exempt obligations with a repayment term of 30-years. The interest rate on the Bonds is fixed, meaning annual debt service is fixed if the Bonds are sold and not subject to change over the life of the bonds. Standard & Poor’s has evaluated the proposed Bonds and assigned the Bonds a credit rating of ‘AA’, which is a very strong rating and which ensured that the Bonds obtained are the lowest possible interest rate. The ‘all-inclusive’ interest rate on the bonds is equal to approximately 2.85%. The Bonds, $20 million are deposited into a Project Fund and are available immediately to be used as directed by the City. The City’s outstanding debt falls well below the allowable debt limit.
154
NON-DEPARTMENTAL
Please see below for the Bond Amortization Schedule:
More information can be found in the City’s Annual Comprehensive Financial Report at https://cityofpetaluma.org/documents/fiscal-year-2024-annual-financial-report/
155
NON-DEPARTMENTAL
156
PARKS AND RECREATION / COMMUNITY SERVICES
Parks and Recreation / Community Services
157
PARKS AND RECREATION / COMMUNITY SERVICES
Description
The Parks and Recreation Department serves to enhance health and wellness by providing a wide range of recreational opportunities and access to outdoor space that reflect the evolving needs of our diverse community. Working collectively, Parks and Recreation staff strive to offer safe and thriving environments to build a stronger, healthier, and more resilient community. To maintain a strategic vision for managing public spaces and facilitating programming, the department consists of three divisions including; Parks Maintenance, Recreation Services, and Facilities Maintenance.
The Recreation Services Division plans, coordinates, and implements recreation programs, activities, special events, and classes for all ages and abilities including toddlers, youth, teens, adults, and older adults. This includes operation of the Petaluma Community Center, Kenilworth Recreation Center, Petaluma Swim Center, the Senior Center, Petaluma Historical Library and Museum, and oversight of the Cavanagh Pool and Recreation Center. The division is responsible for planning and implementing community-wide special events; presenting a wide array of recreation classes and camps; managing an aquatic agreement that provides programming and pool operations; facilitates athletic field allocation and reservation calendar; and, provides a comprehensive adult sports program. The division supports a number of citizen advisory committees and commissions including the Recreation, Music and Parks Commission, Senior Advisory Committee, Tree Committee and the Petaluma Museum Association Board of Directors. The Division is highly engaged in a variety of volunteer and partnership projects with several community advocacy groups.
The Parks Maintenance Division is responsible for maintaining nearly 100 public sites, including 48 developed parks, 28 playgrounds, and works collaboratively with other departments to care after the 26.7 miles of pedestrian and bike paths throughout the parks, public right of ways, and open space. This responsibility spans 720 acres of parkland, 175 of which is natural turf and highly used athletic areas. Daily responsibilities of maintenance activities include but are not limited to debris removal, playground safety inspections and repairs, restroom cleaning, irrigation maintenance and repair, mowing, turf care, pruning, fertilization, weed control, repairs due to vandalism, graffiti eradication, cleaning and repairing structures, tree maintenance, mulching, minor plumbing and construction work, water conservation monitoring, as well as tracking and responding to calls for service requests from the community.
The Building and Facilities Maintenance team is responsible for routine maintenance and minor repairs to City facilities, including Heating Ventilation and Air Conditioning equipment (HVAC), electrical and plumbing systems, minor remodeling and interior improvements, roofing, energy and water conservation upgrades, two pool mechanical systems, community buildings and spaces at the Petaluma Fairgrounds, and the marina docks. Tasks include managing a preventive maintenance schedule, responding to repair word due to vandalism, graffiti eradication, cleaning and repairing structures and responding to calls for service from the community and City staff.
Mission Statement
Parks and Recreation provides access to high quality recreation opportunities and stewardship of public spaces and lands that foster healthy lifestyles, inclusivity, and strengthen community connections.
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PARKS AND RECREATION / COMMUNITY SERVICES
Major Accomplishments and Highlights
The Parks and Recreation Department continues to expand community programming and special events at the Petaluma Fairgrounds, while implementing innovative practices for maintaining and managing park spaces throughout the city. The department maintains strong partnerships with dozens of community organizations and non-profit service providers to ensure local residents regardless of age or abilities have access to a wide range of recreational offerings.
• Improved access and expanded community programming, special events, and public art displayed at the Petaluma Fairgrounds including but not limited to the Big Bounce Inflatable event, Vintage Market, Card Memorabilia Expos, Car Shows, and the Petaluma Music Festival.
• Successfully implemented the City’s first outdoor community Ice Skating Rink (LUMA Ice). Provided special event offerings over three consecutive weeks utilizing the Petaluma Fairgrounds main parking lot. The event featured real ice, custom lighting, sound, local concessions, and accommodated over 200 participants on ice every 90- minutes.
• Completed design for the City’s second community skatepark located at Lucchesi Skate.
Construction scheduled to begin Summer/Fall 2025.
• Implemented the city’s second consecutive year of animal grazing throughout city parks and open spaces. Doubled local grazing sites from five park’s in 2023, to ten sites in 2024, including collaborating on a kickoff event ‘Transhumance Festival’, shepherding sheep from the Fairgrounds to McNear Peninsula to showcase local grazing benefits. • Began construction on the Swim Center Replastering Project, replacing existing surfaces and upgrading pool lighting, drainage, tiles, steps, and deck at both the competition pool and wading pool.
• Completed installation of the Shollenberger Educational Ampitheater and Kiosk project, benefiting community wetland educational programming in partnership with the Petaluma Wetlands Alliance. The additional seating, and improved access will provide future generations more opportunities to learn about wetland stewardship. • In collaboration with Daily Acts, completed two public water-wise landscape installations and non-active turf conversion projects at La Tercera and Miwok Parks in the Spring With grants secured by the Petaluma River Watershed Land Resilience Partnership, the effort included installing dozens of shade trees, more than a 1,000 native plants, over 13,000 square feet of converted lawn, 1,000 sq feet rain gardens, conserving an estimated 500,000 gallons of water annually across the two parks. • Completed construction of the second phase of the Petaluma Community Sports Field featuring the first all-weather baseball facility in Petaluma, fulfilling a much-needed program gap for youth ages 13 through adult.
• In partnership with ReLeaf Petaluma, Rebuilding Together, and AmeriCorps volunteers, planted over 100 trees throughout a dozen parks, public streets, and sidewalks. • New Irrigation controllers and water conservation equipment was installed across several Parks, including Wiseman, La Tercera, Leghorns, and Oak Hill Parks, significantly improving water conservation efforts and efficiency. • In partnership with Osborne Organics, initiated the City’s first Organic Natural Grass Maintenance Pilot program, featuring three parks, representing varying conditions, that will be managed with organic soil amendments, increased aeration, and soil testing over three years to develop methods, schedules, and align resources towards standardizing restorative best practices across the city’s most active natural grass play areas. 159
PARKS AND RECREATION / COMMUNITY SERVICES
Goals and Priorities
Petaluma remains an active and engaged community when it comes to participating in organized or passive recreational activities. Parks and Recreation staff have embraced the opportunity to provide new community events and programming at the Petaluma Fairgrounds.
Staff remain committed to focusing resources towards providing critical maintenance activity across the park system including playable spaces, enhancing tree care, improving natural turf, and water conservation efforts through investments and innovation. To ensure equitable programming and access to safe parks, staff remain focused on identifying opportunities to incorporate Age-Friendly concepts across all activities, enrichments classes, park projects, or initiative. Major goals and priorities for the department include supporting the organizational growth experienced since assuming new and expanded programming responsibilities by investing in new staff trainings and development opportunities. As the department welcomes new staff members fulfilling new roles, it is a priority to invest in standardizing new employee onboarding and emphasize cross training opportunities which will provide depth and support across the department, providing higher level service to the community. It is the goal of the department to transition the citywide aquatics programing at both the Swim Center and Cavanagh Pool, back under the department’s day to day management. Since the 2013 season, City pool operations have been managed by a third party operator and while the arrangement has served a critical function in maintaining access and programming to the City’s public pools, staff recognize the critical amenities that public pools provide, and welcome the opportunity to engage pool users and stakeholders to better align programming with community needs. Goals and priorities for upcoming capital park projects include; completing the Lucchesi Multi-Use Synthetic Turf Field replacement, completion of the Petaluma Swim Center pool replastering project, construction of Petaluma’s second new skate park at Lucchesi Park, and a number of facility improvements and pathway repairs throughout the parks which together provide a balanced an and equitable approach to investments addressing the most critical need.
Sonoma County’s Measure M, Parks For All, initiative continues to provide much needed resources to support ongoing park improvement projects and critical maintenance within local parks. Measure M revenues have been critical in improving maintenance operations for the approximately 175 acres of active turf and athletic fields. Investments include increasing gopher abatement services and seasonal turf maintenance aimed at improving the most heavily trafficked athletic fields and parks to ensure safe, playable surfaces. Staff introduced an animal grazing pilot program to bring more restorative land practices to Petaluma’s parks and open spaces. Investing in bolstering Petaluma’s urban tree canopy continues with the urban tree mapping nearly completed which will inform the holistic Urban Tree Management Plan, providing a roadmap for care in improving overall tree stewardship citywide.
Performance Measures
Strategic
Goal Description
Measure
Type
FY
2023/24
Measure
FY 2024/25
Target
FY
2024/25
Measure
FY 2025/26
Target
A City That
Works
Scholarship Funds Output 1320 6000 TBD 6500
A City That
Works
Number of Camp
participants
Output 501 500 TBD 550
A City That
Works
Number of senior
enrichment classes
Output 60 80 TBD 92
A City That
Works
Number of Sports
league participants
Output 870 900 TBD 725
A City That
Works
Number of contract
classes offered
Output 30 35 TBD 60
160
PARKS AND RECREATION / COMMUNITY SERVICES
Departmental and Program Budget Overview
Key Budget Highlights and Changes by Program
A Division budget of $10,065,796 is recommended for 2025/26. This represents an increase of $861,400 over the revised budget for 2024/25.
Salaries are recommended at $3,285,134, an increase of $5,220 over 2024/25. A new Facility and Operations Manager is proposed in the new year to address ongoing facility needs and deferred maintenance. The increase is also attributed to negotiated cost of living adjustments and step advancements through the salary ranges.
Benefits are recommended at $1,384,169, up by $256,640 when compared to FY 2024/25.This is attributed primarily to the position re classifications, increase in retirement costs and employee benefit selection.
Services and supplies are recommended at $3,424,590, an increase of $554,670 over 2024/25.
This budget reflects operational services and supplies, community outreach with park services, contract employee classes, services and supplies for youth and adult sports programs, building repairs/maintenance and landscape, and tree preservation and urban canopy, tree maintenance, organic weed abatement, animal grazing, gopher abatement and increased park By Departmental Program 2024 Actual 2025 Revised 2026 Budget Parks and Recreation Administration 1,516,630$ 1,562,495$ 1,852,268$ Recreation Cavanagh Center 16,761 7,000 7,000
Recreation Community Center 209,069 179,048 163,826
Recreation Library/museum 54,330 67,253 68,546
Recreation Youth/teens Programs 232,683 262,086 229,032 Recreation Contract Classes 183,373 72,500 150,000
Recreation Sports Programs 63,005 45,876 38,000
Recreation Aquatic Programs 344,418 596,550 450,415
Recreation Senior Programs 72,915 54,627 62,328
Recreation Special Events 61,826 42,000 80,000
Building/Facility Maintenance 924,273 876,901 891,849 Parks Maintenance 3,353,833 3,320,978 2,837,656
General Fund Parks and Recreation / Community Services 7,033,116$ 7,087,314$ 6,830,920$ LAD 656,977 505,901 733,377
Measure M Parks 1,196,103 1,040,679 924,026
Fairgrounds 456,288 570,502 1,577,473
Non General Fund Parks and Recreation / Community Services 2,309,368$ 2,117,082$ 3,234,876$ Parks and Recreation / Community Services 9,342,484$ 9,204,396$ 10,065,796$ By Account Type 2024 Actual 2025 Revised 2026 Budget
Salary 2,483,025$ 3,279,914$ 3,285,134$
Benefits 816,941 1,127,529 1,384,169
Services & Supplies 3,821,352 2,869,920 3,424,590
Utilities 1,249,800 1,263,750 1,297,350
Capital Expenditures 34,083 - 50,050
Transfers 937,283 663,283 624,503
Parks and Recreation / Community Services 9,342,484$ 9,204,396$ 10,065,796$ 161
PARKS AND RECREATION / COMMUNITY SERVICES
restroom cleaning and custodial services. Contract costs to assist with the maintenance of the fairground’s facility related to facility repairs and other needs are also included and are directly offset by revenues. Measure M continues to provide funding for ongoing park maintenance and capital projects. The costs and revenues associated with operating a citywide Landscape Assessment District Program are also included. The FY 25/26 increase is primarily due to the annual fair costs which will be offset by revenues as well as increased maintenance and management costs associated with landscape assessment districts. Risk Management and Information Technology intragovernmental charges are also included in this category.
Information Technology charges are unchanged from the prior year and cover costs necessary to stay up to date with current technology/security needs. Risk Management charges have declined slightly resulting from a one-time partial rate holiday initiated in the budget development process, to maintain fund reserves at appropriate levels and is not intended to be reoccurring. The increase is also slightly offset by a reduction in the operating supplies and one- time swim center purchases non-recurring in FY 25/26.
Utilities are recommended at $1,297,350, an increase of $33,600 over FY 2024/25. This is mainly attributed to anticipated utility cost increases in facilities including the fairgrounds.
Capital Expenditures are budgeted at $50,050 to replace the ADA chair lift at the swim center.
Transfers out are recommended at $624,503, a decrease of $38,780 from 2024/25. The decrease is primarily due to slightly less fund transfers for Parks CIP projects. Transfers in this category account for ongoing transfers from Measure M Parks for the repayment of an interfund loan for the Pickleball and Tennis courts and to fund capital projects which include the following projects: Lucchesi Turf Replacement, Lucchesi Skate Park and Swim Center Facility Assessment and Remodel (Phase 2). More information can be found in the Capital Improvement Program section of this budget document. An additional transfer is included and allocated city-wide for Petaluma Innovate, the City’s lengthy and complex project transitioning to a new Enterprise Resource Planning (ERP) system.
Measure M Parks
A Measure M Parks budget of $924,026 is recommended for 2025/26. This is a decrease of $116,653 from the revised budget for 2024/25.
Salaries are recommended at $83,564 and provide funding for 1 Park Maintenance worker. An increase of $3,162 over 2024/25 is primarily due to negotiated cost of living adjustments.
Benefits are recommended at $39,2375, an increase of $2,375 over 2024/25 due to employee selection, increased retirement benefit and workers compensation costs.
Services and supplies of $209,399 are recommended for 2025/26, a decrease of $50,100 from 2024/25. This budget includes funding for ongoing temporary maintenance services, repairs, animal grazing and other operating services. The decrease is mainly due to repair costs that are not expected to reoccur in FY 25/26.
Transfers out are recommended at $591,193, a decrease of $72,090. Projects appropriated include the Lucchesi Turf Field Replacement, Swim Center Facility Assessment and Remodel (Phase 2), Lucchesi Skate Park, ERP system replacement and ongoing loan payback for the Tennis and Pickleball Courts.
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PARKS AND RECREATION / COMMUNITY SERVICES
Costs allocated by prioritized category are below:
Looking Forward
The Parks and Recreation Department continues to make investments in improving public spaces and building a sustainable maintenance program that embraces the long-term stewardship of community landscapes. The transition of the Petaluma Fairgrounds to local management has created excitement and a renewed interest in providing new opportunities for greater public access to community spaces. The Senior Center remains a hub of activity with new events and a variety of programming with expanded hours of operation and new partnerships through the broader Age Friendly Petaluma initiative. The department continues to strengthen partnerships with local service providers such as Petaluma People Services, Petaluma ReLeaf, Rebuilding Together, Friends of the Petaluma River, Daily Acts, Petaluma Wetlands Alliance, the Garden Club, and Petaluma Bounty to name a few. With this year seeing the completion of the swim center pool replastering, the educational amphitheater at Shollenberger Park, the all-weather synthetic turf replacement at Lucchesi Park, and beginning of construction for the new Skate Park at Lucchesi, the city is demonstrates the high value our community holds for public spaces and our investment in building and sustaining healthier parks network for lasting generations.
Fiscal Year 2025-26
Budget
Expenditure Categories
A. Walking Paths, Bike Trails, Park Connections and Access 62,757$ B. Playgrounds, Sports Courts, Active Recreation Spaces 405,757 C. Natural Areas and River Enhancements 12,551
D. Enhanced Maintenance Activities 174,205
E. Recreation and Aquatic Facilities; Park Amenities 86,654 F. Creating New Park Spaces or Expanding Recreational Opportunities 162,551 G. Special Events and Community Programming 19,551
Total Expenditures 924,026$
163
PARKS AND RECREATION / COMMUNITY SERVICES
164
POLICE DEPARTMENT
Police Department
165
POLICE DEPARTMENT
Description
The Department is divided into three divisions; Field Services, Professional Standards, and Technical Services. Within these divisions employees are assigned to specific functions including uniformed patrol, traffic enforcement, parking enforcement, code enforcement, investigations, records, communications, and administration. The FY 25-26 Police Department budget reflects this structure.
Police Department Administration oversees the department’s three police divisions and coordinates with department staff to ensure accountability, collaboration, and sound fiscal oversight.
The Field Services Division consists of three platoons, each overseen by a police lieutenant. Two platoons include six patrol teams providing services twenty-four hours a day, and the Community Impact Response Team. The third platoon includes our specialized teams for investigations and traffic safety.
The six uniformed patrol teams respond to emergency and non-emergency public safety calls for service.
Three teams make up each patrol platoon and work opposite days of the week for seven day a week coverage. Field Services also includes our Crisis Response Team made up of our Special Weapons and Tactics Team (SWAT), Crisis Negotiations, and Tactical Dispatchers, as well as Community Health Outreach, K-9 Unit, UAS/Drone Team, Gang Team, Field Training Officer program, and School Liaison.
The Investigations Team is responsible for the investigation of the most serious crimes committed within the City of Petaluma. Such investigations are often lengthy, demanding and require detectives to draw upon their work experience and significant specialized training. The detectives have received specialized training in the investigation of homicides, sexual assault, child abuse, elder abuse, human trafficking, fraud/identity theft, and other crimes which require a high level of training and experience. A dditionally, the detectives are responsible for the registration and monitoring of all sex, arson, and drug registrants who reside in Petaluma.
The Traffic Team manages the Traffic Safety Program and provides investigative services for fatal and injury traffic collisions and conducts enforcement of traffic regulations throughout the community. The Traffic Safety Program recognizes the impact fatal, injury, and property damage collisions have in the community. Preventing death, injury, and property damage on City streets remains one of our highest public safety priorit ies. To further reduce injury and death, we focus on impaired/distracted driving, occupant protection/safety belt use, bicycle and pedestrian sa fety, and motorcycle safet y through education, enforcement, and recommending traffic engineering improvements.
The Traffic Team also includes parking enforcement services and is staffed by two full -time non-sworn parking enforcement o fficers (PEO), and one part -time non-sworn parking enforcement officer. The Mission Statement
Working with our community to provide professional police services since 1858.
The Police Department provides a full range of law enforcement services to the community as we focus on our four primary tenants;
Reducing Crime
Increasing Traffic Safety
Improving the Quality of Life
Community Engagement
166
POLICE DEPARTMENT
PEO’s are responsible for enforcement of the City’s Municipal Code regarding parking regulations, and a majority of their time is spent in the downtown business district enforcing timed zones.
Also included in the Traffic Team is Abandoned Vehicle Abatement (AVA) which consists of one full-time non-sworn officer. The AVA officer targets abandoned vehicles and vehicles left parked on City streets for more than 72 hours. The Department receives on average 110 calls for service a month regarding abandoned vehicles and the goal is to reduce the number of calls for service and increase enforcement of abandoned vehicles left on City streets and private property.
The Community Impact Response Team (CIRT) is a high visibility uniformed proactive problem-oriented policing team tasked with street level problem solving to address emerging community crime and safety challenges. CIRT works to address community safety problems by addressing the people, places, and issues creating the highest number of calls for services for patrol through long-term and short-term problem-solving strategies.
The Professional Standards Division is responsible for the oversight and compliance of the entire department. In our efforts to enhance transparency and accountability, the Professiona l Standards Division is responsible for ensuring all employee training and compliance with Commission on Peace Officer Standards and Training (POST) , Internal Affairs Investigations, recruitment and retention, and serves as the liaison to the Independent Police Auditor . The Professional Standards Division also oversees the department’s efforts in seeking accreditation through the Commission on Accreditation of Law Enforcement Agencies (CALEA).
The Technical Services Divisio n is responsible for the 911 Communications Center, Records, Community Engagement/Social Media, Emergency Management, Facility Needs, Fleet, and Technology all of which is overseen by a civilian police manager.
As the primary public safety answering point (PSAP) for Petaluma, all emergency and non -emergency calls and text to 9 -1-1 communications come into the Communications Center. The calls for service range from general questions regarding City services, civil disputes, and reporting emergency calls like fire, injury traffic collisions, violence, and medical emergencies. In addition to answering phone calls and dispatching field personnel, public safety dispatchers process field requests and registration check s on individuals and vehicles; request towing services and enter vehicles and property into state and federal computer systems. As the PSAP, the team continues to receive all 911 and emergency calls for fire, ambulance and police services. However, once the initial call is determined to be of a fire or medical nature only, the call is transferred to REDCOM for the dispatching of the appropriate Fire and Emergency Medical Service (EMS) resources. The Communications Center also coordinates dispatching serv ices for the city’s mobile crisis intervention team Specialized Assistance For Everyone (SAFE).
The Computer Aided Dispatch (CAD) and Records Management System (RMS) provide electronic systems to assist in the tracking of calls for police services and vital record keeping functions.
The Records Team is comprised of Records Technicians who process all records related to our mission to include but are limited to crime reports, traffic collisions, and citations, criminal and civil s ubpoenas, stored vehicle reports, criminal history clearance letters, discovery requests, crime data reporting to federal, state, and local agencies including the media, report crime statistics, issue taxi permits, solicitor permits, massage permits and registrations. The Property Technician is also under Records and is responsible for preserving evidence taken into police custody, maintain accurate chain of custody records, responding to discovery requests, and manages the transfer and disposition of all evidence items. The Records Team is also responsible for staffing the Police Department’s front desk and non - emergency telephone lines during business hours.
167
POLICE DEPARTMENT
The Police Department continuously looks for grant opportunities to offset the cost of new police services, technology acquisitions, and specialized programs.
Major Accomplishments and Highlights
• Initiated a Public Safety Facility Master Planning process jointly with Petaluma Fire Department, Public Works, the City Manager’s Office and project consultant Mack5. • Relaunched the Department’s District Policing Model, created a quarterly district newsletter, and hosted the Department’s first Community Academy Class in years with 19 attendees. • Enacted and seated the Public Safety Advisory Committee (PSAC) which now meets monthly at City Hall.
• Continued efforts specific to Professional Development and Organizational Wellness through the completion of a CA POST facilitated Supervisory Team Building Workshop, bimonthly leadership training for all police supervisors and the ongoing implementation of our Organizational Wellness Plan in partnership with UCSD and POST through 720° Health. • Added and utilized Public Safety equipment including fixed license plate readers, mobile video surveillance trailers, downtown video camera system improvements, specialized police e-bicycles, Taser 10 devices, drones and body worn cameras to apprehend suspects, develop investigative leads, reduce crime, improve less lethal force options while enhancing transparency • Coordinated through the Safe Routes to School program and collaborative work with Traffic Engineering considerable traffic safety improvements, speed reductions zones, and crosswalk/intersection daylighting installations.
• Secured over $1.3m in grants that funded traffic safety and DUI enforcement operations, funded the SAFE Mobile Crisis Intervention Team, and secured the acquisition of essential safety equipment and technology.
Goals and Priorities
• Begin the development of a new 3-year strategic plan with input from the community. • Enhance recruitment, retention, and succession planning strategies for the future and evolving community needs.
• Proceed with implementation of the proposed Public Safety Facility design-build delivery process and construction administration
• Conduct a workshop on parking enforcement regulations and propose an ordinance to address oversized vehicle parking on public roadways as outlined in the City’s Goals and Priorities for FY25/26.
• Codify the Hybrid Police Oversight Model in the Municipal Code as outlined in the City’s Goals and Priorities for FY25/26.
• Enhance public safety transparency and effectiveness by developing a Public Safety Transparency Data Dashboard and investing in data-driven tools and analytics to inform crime prevention strategies and traffic safety initiatives.
• Conduct a patrol operations electric vehicle pilot with a Chevrolet Blazer Police EV. • Identify process optimizations, resource allocations, and implement measures to improve officer availability and reduce response times.
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POLICE DEPARTMENT
Performance Measures
Strategic
Goal Description
Measure
Type
FY 2023/24
Measure
FY 2024/25
Target
FY 2024/25
Measure
FY 2025/26
Target
A City That
Works:
Number of filled sworn
allocated police officer
positions and
Vacancy rate of unfilled
police officer positions.
Filled
Sworn
Officer
Positions
71 FTE
Sworn Police
Officers
Vacancy
Rate
3%
70 FTE
Sworn
Police
Officers
Vacancy
Rate
0%
70 FTE
Sworn Police
Officers
Vacancy Rate
6%
70FTE
Sworn Police
Officers
Vacancy
Rate
0%
A City That
Works:
.
Institute staff training
programs to enhance staff
expertise and
advancement. Training
provided annually
Number of
Hours
7,520
Outside
Training
hours
4600 Platoon
Training
Hours
12,120 total
training hours
~7,000
Outside
Training
hours
4800
Platoon
Training
Hours
11, 800 total
training
hours
7,101
Outside
Training
hours
4700
Platoon
Training
Hours
11, 801 total
training
hours
~7,200
Outside
Training
hours
4800
Platoon
Training
Hours
12,000 total
training
hours
A City That
Works
A Safe
Community
That Thrives
Coordinate and enhance
cross-department social
media collaboration.
Social Media/
Nixle Enrollments,
Followers and postings for
all Platforms
Total
Number of
Followers
and
Postings
Followers/
Subscribers:
115,889
Postings:
2,522
Followers/
Subscribers:
119,000
Postings:
2,500
Followers/
Subscribers:
130,600
Postings:
2100
Subscribers/
Followers
135,000
Total Social
Media
Postings
2500
A Safe
Community
That Thrives
Improve traffic safety
through proactive
education, engineering,
and enforcement strategies
Number of Traffic Collisions
(Fatal/Injury), DUI
collisions/ arrests, and
traffic Citations
Total
number of
incidents
450 Total
Number of
Traffic
Collisions
(Fatal- 2/
Injury-233)
32 DUI Traffic
Collisions
376 DUI
Arrests
Citations:
2,277
350 Total
Number of
Traffic
Collisions
(Fatal-0/
Injury-185)
30 DUI
Traffic
Collisions
250 DUI
Arrests
Citations:
2500
270 Total
Number of
Traffic
Collisions
(Fatal- 1/
Injury-126)
14 YTD DUI
Traffic
Collisions
173 YTD DUI
Arrests
Citations:
1,137 YTD
Reduce Total
Number of
Traffic
Collisions by
5% and have
0 traffic
fatalities
consistent
with Vision
Zero goals.
DUI Arrests:
250 Arrest
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POLICE DEPARTMENT
Departmental and Program Budget Overview
Key Budget Highlights and Changes by Program
A Police Department budget of $32,508,847 is recommended for 2025/26. This represents an increase of $872,209 over 2024/25.
Salaries are recommended at $15,762,781 representing an increase of $428,811 over 2024/2025. This change is mainly a result of cost -of-living adjustments as a result of labor negotiations, increased overtime, and advances through the salary ranges.
Benefits are recommended at $11,736,815 representing an increase of $628,344 over 2024/2025. This increase is mainly a result of negotiations- cost of living adjustments, increased retirement costs, workers compensation costs, and employee benefit selections as well as benefits associated.
Services and supplies are recommended at $4,849,873 an decrease of $203,122 from 2024/2025. This category is mainly for operating services and supplies, the SAFE program funded by countywide tax measure O and grants, employee training, vehicle fleet repairs and maintenance, Redcom 911 services, K-9 program, CAD services, the lease cost for large equipment storage, cleaning and communications services. Risk Management and Information Technology intragovernmental charges are also included in this category. Information Technology charges are unchanged from the prior year and cover costs necessary to stay up to date with current technology/security needs. The primary decrease is due to By Departmental Program 2024 Actual 2025 Revised 2026 Budget Police Administration 6,679,423$ 6,446,854$ 6,450,732$ Police Communication 1,940,029 2,236,603 2,223,889
Police Cad/rms 392,716 428,647 480,085
Police Investigation 1,973,545 2,107,625 2,221,004
Police Patrol 14,580,673 14,891,170 15,558,661
Police Traffic Safety 2,258,988 2,155,065 2,594,930
Police Records 908,933 896,471 990,230
Parking Enforcement 333,238 303,514 295,079
General Fund Police Department 29,067,545$ 29,465,949$ 30,814,610$ Police Grants 2,023,623 1,998,870 1,365,770
Abandoned Vehicle Abatement 164,091 171,797 179,405
Asset Seizure 703 22 149,062
Non General Fund Police Department 2,188,417$ 2,170,689$ 1,694,237$ Police Department 31,255,962$ 31,636,638$ 32,508,847$ By Account Type 2024 Actual 2025 Revised 2026 Budget
Salary 14,507,401$ 15,333,970$ 15,762,781$
Benefits 10,357,124 11,108,471 11,736,815 Services & Supplies 5,889,975 5,052,995 4,849,873 Utilities 84,506 67,353 90,618 Capital Expenditures 56,956 73,849 - Transfers 360,000 - 68,760 Police Department 31,255,962$ 31,636,638$ 32,508,847$ 170
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savings in operating equipment supplies, a reduction in the crime analyst contract and the Smart Geotech and a slight reduction to the Risk Management intragovernmental charges as a result from a one-time partial rate holiday initiated in the budget development process, to maintain fund reserves at appropriate levels and is not intended to be reoccurring. The decrease is slightly offset by an increase in fuel cost to align the budget with actuals and appropriations to fund the replacement of 12 automated external defibrillator (AED) emergency medical devices , replacement of the Crisis Response Team safety equipment nearing the end of their serviceable life and grant funded safety automated license plate readers. Funding for the ongoing operations of the City’s SAFE program is coming from Measure O in FY 2025/26, a countywide tax measure in support of addressing countywide mental heath, addiction and homeless services. The City remains optimistic that Measure O will provide the necessary funds long term for the continuity of this indispensable program.
Utilities are recommended at $ 90,618. The $23,265 increase is mainly due to the utility company rate increases.
Transfers out are recommended at $ 68,760. Transfers in this category account for transfers from the Asset Seizure fund to support the public safety operations in the general fund. A minimal transfer out from the Abandoned Vehicle Abatement fund is to fund the new ERP system the city is currently implementing.
Looking Forward
The Department remains dedicated to strengthening our workforce, enhancing operational efficiency, and modernizing service delivery to meet the evolving needs of our community. Our continued focus on professional development, leadership training, and employee wellness will ensure that we retain a highly skilled and resilient team capable of delivering high-quality public safety services. By further refining span of con trol, increasing supervisory support, and reinforcing mentorship programs, we aim to sustain institutional knowledge and build a department al culture rooted in accountability, professionalism, innovation, and community engagement.
Building on prior strategic investments, the Department will expand its data -driven approaches to crime prevention, resource deployment, and public safety communications. By integrating emerging technologies, evidence-based policing models, and real -time analytics, we will enhance our ability to identify and address crime trends proactively. Strengthening partnerships with local stakeholders and regional agencies will remain a priority as we continue to foster collaborative solutions for public safety challenges.
Maintaining operational readiness and fiscal responsibility is central to our mission. Through ongoing organizational assessments and process improvements, we will ensure that emergency services remain effective, staffing levels align with community needs, and resources are utilized efficiently. The Department will continue to seek sustainable funding opportunities and innovative cost-saving measures to maximize our delivery service without compromising quality.
Looking ahead, we are committed to evolving our public safety strategies to reflect the priorities of the Petaluma community while aligning with the goals and priorities set by the City Council . By leveraging lessons learned, enhancing transparency, and embracing forward-thinking initiatives, the Department will remain at the forefront of modern policing —dedicated to safety, service, and trust. Through this alignment, we ensure that our efforts support the broader vision for Petaluma, fostering a safer, mor e connected, and resilient community.
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Public Works
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Description
The Public Works Department is committed to delivering exceptional services that maintain, improve, and enhance Petaluma’s public infrastructure, transportation systems, and essential facilities. The City Council’s Goals and Priorities provides the framework that guides our way in defining and implementing departmental priorities and actions.
Our work includes the maintenance and operation of city streets, sidewalks, traffic signals, streetlights, and active transportation infrastructure; the planning and implementation of capital improvement projects; the review and oversight of public infrastructure improvements associated with new development; the management of the Petaluma Marina and Airport; and, the administration of public transit and mobility programs. The department also supports emergency response efforts and long-term resilience planning to prepare for climate impacts and other challenges. We seek to maintain and improve the quality of life for all residents, organizations, and visitors. Our team’s success relies on the sharing and management of equipment, resources, and expertise across the various Public Works divisions and workgroups.
The department is comprised of the following divisions: Development Engineering, Capital Improvement Program (CIP), Safe Streets & Mobility, and Airport and Marina.
The Development Engineering Division oversees engineering services related to private development and public infrastructure improvements. This division ensures that all new development projects comply with city standards through the review of vesting and tentative (parcel) maps, development entitlements, utility service and encroachment permits, right-of-way management, and construction inspections. Development Engineering also manages city land transactions, developer agreements, and public improvements, ensuring that private development contributes to high-quality infrastructure that aligns with the City's long-term goals.
This division plays a key role in coordinating infrastructure upgrades with new development to maximize efficiency and minimize disruptions to the community.
The Capital Improvement Program (CIP) Division manages the planning, design, and construction of the City’s public infrastructure projects. The team oversees the City’s multi-year Capital Improvement Program, including preliminary and final design, environmental planning and permitting, construction management, inspections, grant administration, and setting annual priorities for capital improvements. Capital improvements include pavement rehabilitations, active transportation and safe streets projects, traffic calming, bridge evaluations and repairs, water and wastewater system upgrades, flood control, drainage projects, park and trail improvements, public building maintenance, and upgrades to airport, marina, and transit facilities. The CIP team, consisting of project managers, engineers, inspectors, and technical staff, drives projects from conception to completion, ensuring projects remain on schedule and Mission Statement
The Public Works Department is committed to building, maintaining, and enhancing Petaluma’s infrastructure to support a safe, accessible, and sustainable community. Through innovative planning, engineering, and operations, we strive to deliver high-quality services that improve mobility, connectivity, and public spaces for all residents, businesses, and visitors. Through collaboration, innovation, and strategic investment, we work to ensure Petaluma’s infrastructure remains efficient, resilient, and responsive to the evolving needs of our community. 174
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within budget while collaborating with city departments, funding agencies, and regulatory bodies.
The Safe Streets & Mobility Division focuses on improving transportation safety, accessibility, and connectivity for all road users. The division manages Traffic Engineering, Street Operations and Maintenance, and Petaluma Transit, ensuring that public roadways and transit systems are efficient, well-maintained, and aligned with the City’s Vision Zero and Complete Streets goals. • Traffic Engineering: Reviews traffic infrastructure improvements, private development impacts on transportation, and permits for traffic and parking control. The team oversees traffic studies, speed surveys, and the Safe Streets Quick Build program, while also managing the City’s traffic signals and Rectangular Rapid Flashing Beacons (RRFBs), ensuring optimal programming, safety improvements, and maintenance. The division is also responsible for maintaining nearly 6,000 streetlights and 54 traffic signals, responding to 3,000 underground service alerts annually, and collaborating with regional transportation partners such as the Sonoma County Transportation Authority (SCTA) and Sonoma-Marin Area Rail Transit (SMART).
• Street Operations & Maintenance: Manages the repair and upkeep of City streets, sidewalks, right-of-way infrastructure, and traffic signage and markings, including pothole patching, overlays, trench repair, crack sealing, debris removal, tree trimming, and trail surface maintenance. The team also installs and maintains regulatory, directional, and special signage, as well as crosswalks, fog lines, bike lanes, curb painting, and reflectors. Additionally, they provide emergency response during floods and natural disasters and assist with the sidewalk repair program. • Petaluma Transit and Petaluma Paratransit are housed within the Safe Streets and Mobility Division. Transit consists of City and contracted transit operator staff. This section accounts for Transit administrative functions, including staffing, financial, and operational oversight of the contract operations, and support of City Council and Transit Advisory Committee activities. The operation and maintenance contract is currently with MV Transportation, Inc. and services provided included fixed-route bus service, mobility assistance paratransit service, and microtransit service. Over 300,000 trips are provided annually by Petaluma Transit and Paratransit.
By integrating development engineering, capital projects, and transportation services under one umbrella, the Public Works Department optimizes resources, enhances infrastructure coordination, and ensures the City's mobility network meets the needs of a growing community.
The Petaluma Municipal Airport and the Petaluma Marina are managed by the Airport and Marina Manager. The airport handles approximately 60,000 take-offs and landings each year.
The Airport Enterprise Fund supports the management of 164 City-owned aircraft storage hangars, 20 private hangars, 118 tie-down spaces, 3 commercial operators, and hosts 200 tenant aircraft. Additionally, the airport maintains an Automated Weather Observation System (AWOS) and a ground communication link to the Federal Aviation Administration (FAA). To ensure the availability of a safe and reliable fuel source for aircraft, the City provides 24/7 self- service avgas and jet fuel on demand. These systems are vital to supporting flight operations, including lifesaving medical flights, air charter, and cargo services. Also under the oversight of the Airport and Marina Manager is the Petaluma Marina, which has 184 berths varying from 22 ft. to 40 ft. in length. The marina has a current occupancy rate of 35% and offers a public launch, pump-out, and fuel service. Additionally, the marina provides critical emergency services by hosting the Sonoma County Sheriff Marine Unit vessel and providing the primary launch for Petaluma Fire and Police rescue vessels.
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Major Accomplishments and Highlights
Here are a few examples of recent accomplishments and programs within each area of Public Works:
o Developed and implemented a new department organizational structure after the split of the Public Works & Utilities Department into two separate entities: the Public Works Department and the Water Resources & Utilities Department.
• Development Engineering:
o Development Engineering provided technical support and engineering oversight for development projects throughout the City.
o Completed ADA Self Evaluation of Public Facilities as part of our Update to the ADA Transition Plan.
• Capital Improvement Program (CIP):
o Completed work along Maria Drive, a complete streets project that improved pavement, expanded recycled water services, enhanced accessibility with ADA curb ramps, and added traffic calming and bike lanes.
o Made significant progress with the Petaluma Public Safety Facility project by refining space programming, conducting high-level conceptual planning, completing site surveys, and securing key consultant teams for geotechnical, environmental, and traffic analysis.
o Completed the installation of new pre-cast concrete floating docks and steel pilings at the Petaluma River Turning Basin.
o Made significant progress on the PIPS Parallel Force Main project with 90% design completed and adoption of the Initial Study/Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program. o Completed the Pool Replastering, which represents phase one of the larger pool upgrades.
o Completed design and transitioned to the bidding and construction phases of the new Skatepark at Lucchesi Park.
o Completed a grant-funded evaluation of the seismic resiliency of several City community facilities and essential services, including City Hall, the Petaluma Museum, and critical water system infrastructure including the Water Field Office, pumps, water storage tanks, and water supply pipelines. o Completed initial design alternatives for the Downtown Trestle and continue to refine with community input and feedback.
o Completed the installation of a monitoring well, in partnership with the Petaluma Valley Groundwater Sustainability Agency at Oak Hill Park, after drilling indicated a lower water yield than would be suitable for a municipal supply well. o Completed multiple project milestones for Ellis Creek Water Recycling Facility (ECWRF) projects, including: conducted urgent temporary repairs to Digester #2, successfully replaced the outfall, completed expansion of the tertiary filtration system, began construction on the chemical systems upgrades project.
• Safe Streets & Mobility
Street Operations & Maintenance and Traffic Engineering:
o Purchased a new bike lane sweeper that is able to clean and maintain our new buffered bike lanes and trails.
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o Reduced the speed limit in the downtown business district from 25mph to 20 mph.
o Created the Safe Streets & Mobility Division that includes traffic engineering, street operations and Petaluma Transit.
o Developed a new five-year paving plan that prioritizes and ranks streets based on established criteria.
o Completed multiple Safe Streets quick build projects for intersection and corridor improvements, which included 5th Street bike boulevards, bike lanes on Redwood Way and Sunny Slope Avenue, 6th and C St and various safe routes to school improvements.
o Increased vehicle, pedestrian, and bicycle safety via improvements to sidewalk, crosswalk, and bicycle facilities throughout the city.
o Launched the Safe Street Nomination Program, creating a means through which community members can request traffic calming and other safety improvements to city streets which are then objectively scored and prioritized. o Launched a Bike Rack Request program and purchased grant-funded bike racks for installation throughout 2024.
Transit:
o Increased ridership of Petaluma Transit fixed route service by 33% and Petaluma Paratransit service by 21%, compared to FY23.
o Implemented a citywide fare free program starting on July 1, 2024. Petaluma Transit is the first transit agency in the San Francisco Bay Area to have a full fare free transit system.
o Launched LumaGo, the first ever on-demand microtransit service on September 30, 2024. This one-year pilot program, since its launch, has averaged 3.9 passengers per hour with an average rating of 4.9 stars. o Ordered four battery electric transit buses from New Flyer industries. The buses will be the first ever zero-emission buses for Petaluma Transit. Estimated arrival of buses is in May 2025.
o Finalized design work for the electrification improvements of the Transit Yard (555 N. McDowell Blvd.), which are necessary to accommodate the first wave of electric transit buses. Started work on the Petaluma Transit facility electrification infrastructure improvements. Estimated completion in Q2 FY26. o Installed bus stop improvements, including: 10 new bus shelters, 20 new dual- stream waste receptacles, and 20 benches.
o Operated 99%+ of scheduled Petaluma Transit service with less than 10 missed trips of service.
o Hired dedicated bus stop utility workers to improve cleanliness of citywide bus stops.
• Airport:
o Received a $222K design grant from the FAA for the Taxiway A Rehabilitation project, currently planned for FY26, pending FAA construction grant approval. o Received a $202K design grant from the FAA for the South Taxilane B Rehabilitation Project, currently planned for FY26, pending FAA construction grant approval.
o Received a $53K grant from the FAA for Airport Pavement Management.
• Marina & Turning Basin:
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o Completed the pile driving and new dock installation in the Turning Basin, and rehabilitation of the Cavanagh Landing parking lot, including new security fencing. Completion of utilities and safety systems planned for early 2025.
Installed expanded network capability and cameras at the Marina for increased visitor and tenant security.
Goals and Priorities
• Development Engineering:
o Continue efforts to update the City’s Floodplain and Sea Level Rise models and FEMA maps, to serve as a basis for flood adaptation planning.
• Capital Improvement Program (CIP):
o Implement the approved and optimized Capital Improvement Plan. o Develop the CIP team by filling remaining vacancies and establishing new practices and protocols for excellence in project management execution. o Continue to grow and develop the newly hired CIP team and further a culture of excellence.
o Re-envision project tracking and metrics for CIP projects using technology such as Procore and Power BI, to work towards the City becoming an industry leader.
• Safe Streets & Mobility:
Street Operations & Maintenance and Traffic Engineering:
o Complete an operational needs assessment and site identification for Public Works Corp Yard needs and future Public Works operations expansion, to increase operational efficiency and long-term effectiveness for water, wastewater, streets, parks, facilities, transit, and city service partners. o Implement new asset management software and digitize streets and traffic signal assets and work orders.
o Electrify the Streets Division fleet to continue efforts to meet climate action goals.
o Continue to improve the traffic network by upgrading equipment and implementing system performance measures to monitor the health and efficiency of the system.
o Continue efforts to implement Vehicle Miles Traveled (VMT) principles.
Transit:
o Increase transit ridership by 15%.
o Implement 15 minute headways on routes 11 and 2 during peak times. o Complete the procurement of zero-emission, battery electric, fixed route buses.
o Order five zero-emission paratransit/microtransit buses, the first such vehicles for Petaluma Transit.
o Implement revision/additional service for LumaGo to additional parts of the City.
o Complete electrification capital improvements of the Transit Facility to support new battery electric buses.
• Airport:
o Compete needed repairs to Hangar Rows 1-8, including Hangar 2L. 178
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o Complete the design process for the Taxiway A Rehabilitation and South Taxilane B Rehabilitation projects.
o Complete an FAA review of the Airport’s Minimum Commercial Standards.
• Marina:
o Secure funding for Marina dredging.
o Integrate a Turning-Basin mooring reservation system into existing systems and procedures.
o Update the Marina webpage on the City’s website for better usability and user experience.
o Install an upgraded security system for the Marina.
Performance Measures
Strategic
Goal Description
Measure
Type
FY 2023/24
Mearsure
FY 2024/25
Target
FY 2024/25
Measure
FY 2025/26
Target
A City
That
Works
Pavement
Condition Index
(PCI,
0-100 scale)1 51 52 52 55
A City
That
Works
Complete
Streets2 & Trail
Improvements
Miles Per Year 3.5 5.6 5.6 6
A City
That
Works
Intersections &
Crosswalks
Improved3
Number of
Intersections &
Crosswalks
- 50 50 50
A City
That
Works
Transit
Ridership
People Per
Year 260,000 285,000 285,0004 328,000
1 PCI is measured on a three-year running average
2 Complete Streets includes accessibility and safety improvements benefitting all road users, including people walking, bicycling, rolling, and driving
3 New Measure for FY 2024/2025
4 Estimated for full FY based upon July-December actual data 179
PUBLIC WORKS
Departmental and Program Budget Overview
Key Budget Highlights and Changes by Program
A Public Works Department budget of $32,248,349 is recommended for 2025/26. This represents an increase of $5,743,289 over 2024/25 and includes budgets in Enterprise, and Special Revenue funds as well as costs supported by the General Fund.
By Departmental Program 2024 Actual 2025 Revised 2026 Budget Pub Works Admin 1,127,358$ 982,126$ 1,032,066$ Pub Works Engineering Development 541,150 732,082 1,012,480 Pub Works Engineering Cip 296,300 167,075 162,301 Pub Works Engineering Traffic 111,990 94,896 166,173 Pub Works Auto/equip Maint Shop 299,013 302,446 310,470 Pub Works Street Lights 199,494 175,000 202,600 Downtown Streets/sidewalks Maintenance 244,139 115,000 104,500 Pub Works Turning Basin/d St Bridge 28,701 39,698 49,883 General Fund Public Works and Utilities 2,848,145$ 2,608,323$ 3,040,473$ Gas Tax Fund 3,192,402$ 3,185,630$ 3,273,581$ Street Maintenance (HUT) 4,809,600 3,806,330 7,982,787 Street Signs And Markings 751,760 1,278,828 980,864 Street Signals And Lights 1,029,946 946,295 1,066,745 Solid Waste Contract Mgt 26,169 29,882 14,369 Streets Fund 6,617,475$ 6,061,335$ 10,044,765$ Airport Admin/operations 2,057,707 2,211,916 4,590,676 Airport Fueling 539,907 520,750 440,500 Airport Hangars 185,819 118,500 127,500 Airport Fund 2,783,433$ 2,851,166$ 5,158,676$ Marina Administration and Operations Fund 780,275$ 438,152$ 444,853$ Transit Administration 1,427,068 7,826,610 1,831,841 City Routes 3,359,974 2,761,794 7,571,660 Paratransit 766,755 772,050 882,500 Transit Fund 5,553,797$ 11,360,454$ 10,286,001$ Non General Fund Public Works 18,927,382$ 23,896,737$ 29,207,876$ Total Public Works 21,775,527$ 26,505,060$ 32,248,349$ By Account Type 2024 Actual 2025 Revised 2026 Budget
Salary 3,529,946$ 4,164,515$ 4,732,708$ Benefits 1,457,529 1,820,512 2,081,930 Services & Supplies 9,454,855 8,993,673 9,318,320 Utilities 722,061 533,751 737,716 Capital Expenditures 37,654 5,615,777 5,041,835 Transfers 6,573,482 5,376,832 10,335,840 Public Works And Utilities 21,775,527$ 26,505,060$ 32,248,349$ 180
PUBLIC WORKS
Total salaries are recommended at $4,732,708, representing an increase of $568,193 over 2024/25 due to the addition of new positions recommended to provide support for the Mobility and Transit divisions. Included are an Administrative Technician and a Senior Transit Planner to assist with ongoing Transit division planning and operating tasks. One additional Engineering Technician I/II is also included and is intended to provide additional support with permitting and plan review in the City engineering division. Also driving the increase are negotiated cost-of-living adjustments, changes in staffing allocations, and step advancements through the salary ranges.
Total Benefits are recommended at $2,081,930 and represent an increase of $261,418 over 2024/25. The increase in benefits costs is associated with the addition of new positions mentioned above as well as increased retirement, and workers’ compensation costs, and employee benefit selections.
Total services and supplies are recommended at $9,318,320, which is mainly costs for contract bus service, maintenance, as well as payment for purchases of fuel and other supplies. This is an increase of $324,647 over 2024/25. Main drivers of this increase include -
• Public Works Administration, Engineering, Street lights, Downtown Streets and Turning Basin– Increase in program costs for the city matching funds for the sidewalk program, a FEMA requirement for the protection of the floodwall, costs related to the maintenance and inspections of the newly installed Docks and the Turning Basin, slightly offset by a reduction in operational supplies, services and training.
• Street Maintenance – Landscape or other maintenance cost for frontage, medians and pavement maintenance program, increased budget for pest control, security and janitorial, increased cost for street signs and maintenance,
• Airport – decrease in consulting and repair and maintenance costs that are non-recurring in FY 25/26
• Transit- increase in operational costs for fixed route and para transit services, slightly offset by a decrease in auto fuel usage and consulting services
Risk Management and Information Technology intragovernmental charges are also included in this category. Information Technology charges are unchanged from the prior year and cover costs necessary to stay up to date with current technology/security needs. Risk Management charges have declined slightly resulting from a one-time partial rate holiday initiated in the budget development process, to maintain fund reserves at appropriate levels and is not intended to be reoccurring.
Utilities are recommended at $737,716, an increase of $203,965 over 2024/25, primarily representing increased rates and aligning actual costs with historical costs.
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Capital expenditures are recommended at $5,041,835, reflecting a decrease of $573,942 from 2024/25, mainly due to one-time capital purchases. Below is a list of the primary capital purchases planned for FY 26. More detail can be found in the citywide capital vehicle and equipment appropriations section included in this budget document.
• Airport – $200K for a Skid Steer, electric vehicle
• Transit – $4.8m for four buses that is a carryforward from FY25
Transfers out are recommended at $10,335,840 representing an increase of $4,959,008 from2024/25 due primarily to increased activity related to CIP projects and corresponding transfers out. Below is a summary of transfers out by fund. Please see the CIP section of the budget document for more CIP details.
• Gas Tax $3.3 million transfers to fund Street Maintenance • Streets $3.97 million transfers to fund CIP projects and ERP • Transit $136K grant funded transfer to fund CIP projects • Airport $2.9 million transfers to fund CIP projects, primarily grant funded • Marina $74K transfers for ERP
Looking Forward
The Public Works Department faces both challenges and opportunities in the years ahead as the City continues to grow and evolve.
Some of the major challenges that the department must address include the following:
1. Aging Infrastructure: Many of the City's roads, bridges, water, and sewer system elements are aging and in need of repair or replacement. The department must thoughtfully prioritize all CIP projects while balancing the need for infrastructure improvements with the myriad needs across the community.
2. Climate Change: Petaluma is vulnerable to the impacts of climate change, including sea level rise and more frequent and severe weather events. The department will be developing strategies to protect, avoid, mitigate, prepare for, and adapt to these impacts through a Flood Adaptation Master Plan (FAMP).
3. Finite Resources: The department continues to find ways to maximize resources, both in-house and through third party consultants. Moreover, we seek new sources of funding to address these challenges, which involve a robust grant program focus to creatively explore all potential funding opportunities on a project-by-project basis.
4. Resource Development and Limitations: As a community that is rebuilding, so is the organization itself, with many new team members coming on board in just the last 2-3 years. Training, development, and the implementation of best practices and standard operating procedures takes time. While already seeing increased benefits from our workforce enhancements, there is much to look forward to in our ever-increasing capacity to move capital and non-capital projects and 182
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initiatives forward. Implementation of new tools and technology that have recently been introduced in Public Works will take time for our staff to learn, master, and fully implement.
A summary of opportunities for the department include:
1. Infrastructure Improvement Projects: There are numerous infrastructure improvement projects on the horizon, including improvements to various streets and upgrades to the City's water and wastewater systems. These projects will help to modernize the City’s infrastructure, improve water quality, and enhance public safety.
2. Increased Staffing and Training: Over the past two years, the Public Works Department has filled numerous staffing vacancies across many of its divisions, some of which have been difficult to fill. The department is now focused on building a culture of excellence through training and developing both new and existing employees. We are a people and service-oriented organization: a fully staffed and trained department will improve efficiency and effectiveness by accomplishing more projects and programs, enhancing operations, implementing innovative solutions, and improving customer service.
3. Smart City Technologies: The department will leverage smart technologies, such as software tools, sensors, data analytics, and automation, to improve the efficiency of City operations, reduce costs, and enhance the quality of services provided to residents. By embracing new technologies, the department can help to create a more innovative and responsive city. Examples include an asset management system, construction and project management software, advanced metering infrastructure, traffic study and data collection technology, traffic signal upgrades, fleet management telematics, data visualization, and other technology improvements.
4. Reimagined Active Transportation and Transit: We will continue to creatively explore and implement additional improvements to the city’s active transportation and transit networks to help fulfill the City mode shift goals included in the General Plan update and Climate Action Framework. This includes implementation of new bicycle, pedestrian, and transit programs and other improvements designed to induce higher usage of transit and active transportation, serving to reduce GHG emissions and create a healthier community.
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184
WATER RESOURCES & UTILITIES
Water Resources and Utilities
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Description
The mission of the Water Resources & Utilities Department is to deliver exceptional water, wastewater, and stormwater services to our community through dedication and innovation. The City Council’s Goals and Priorities provides the framework that guides our way in defining and implementing departmental priorities and actions. The nature of our work ranges from routine maintenance of our utility infrastructure, achieving regulatory compliance, preparing for, and responding to emergencies, wastewater treatment, and distribution of safe and reliable drinking water and recycled water. We seek to maintain and improve the quality of life for all residents, organizations, and visitors. Our team’s success relies on the sharing and management of equipment, resources, and expertise across the various Water Resources and Utilities divisions and workgroups.
The department is comprised of the following operating divisions: Administration, Operations (Water Supply and Distribution, Sewer Collection, and Stormwater Conveyance), Environmental Services (Ellis Creek Water Recycling Facility, Pretreatment Program, Stormwater Program), and Water Resources and Conservation (Water Conservation, Water Supply Planning, Integrated One Water Planning). The department operates and maintains the City’s water distribution system, sewer collection and stormwater conveyance systems, and the Ellis Creek Water Recycling Facility (ECWRF).
Administrative staff work collaboratively to support both water and wastewater enterprise operations. Administrative staff promote accountability, management, leadership, collaboration, and fiscal oversight while coordinating customer service requests and supporting asset management and work order systems. Administrative staff assists in the preparation and coordination of council agenda, budget, and annual report documents; prepares annual fiscal projections; provides support for grant and contract administration; oversees asset management and customer service requests; manages utility rates; provides clerical support for department and division managers; collaborates closely with Human Resources to oversee the department’s hiring activities and personnel management; and, provides clerical and virtual meeting support for Council-appointed committees and commissions.
Wastewater enterprise funds support Operations (Sewer Collection) located at the Water Field Office and Environmental Services (ECWRF and Pretreatment Program) located at ECWRF. The wastewater administration cost center includes transfers to Capital Improvement Program (CIP) accounts, intergovernmental charges, program costs (sewer lateral grant, etc.), and membership costs to key wastewater and recycled water agencies, including Bay Area Clean Water Agencies (BACWA), North Bay Water Reuse Association (NBWRA), and the California Association of Sanitation Agencies (CASA).
Mission Statement
The Water Resources and Utilities Department is committed to delivering safe, reliable, and sustainable water, wastewater, recycled water, and stormwater services to the City of Petaluma—all while prioritizing environmental stewardship and public health. Our mission is to enhance the resilience of Petaluma’s water resources through thoughtful management, conservation, and innovation.
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The wastewater collection system, under Operations, provides 24/7 collection and conveyance of domestic, commercial, and industrial wastewater generated within Petaluma and Penngrove to the ECWRF. The system conveys wastewater through lateral service pipes from homes, businesses, and other customers to sewer mains that transport sewage via a network comprised of more than 195 miles of pipes. . A continuous inspection program identifies problem areas when remote control TV cameras are inserted through the main pipelines.
Preventative cleaning of sewer lines is accomplished using a high-pressure water jet vacuum truck. The Environmental Services division is responsible for the operation and maintenance of ten sewer pump stations that are also funded by the wastewater enterprise. Sewer pump stations deliver an average daily flow of 3.7 (drought) to 4.5 (non-drought) million gallons per day (MGD) during dry weather conditions, and up to 36 MGD of wet weather wastewater flow to the ECWRF. During wet weather, the wastewater collection system experiences inflow and infiltration (I&I), where stormwater enters the sanitary sewer collection system through storm inlets improperly connected to sanitary sewer lines as illicit connections, and deficiencies in the pipe network.
Wastewater Storm Drain, managed by the Operations division, funds the portion of the storm drain maintenance program directly related to the operation of the sewer utility. Stormwater crews clear, clean, and maintain approximately 4,645 storm drain inlets and catch basins, and numerous culverts, open ditches, and creeks. Operations is also responsible for the operation and maintenance of three stormwater pump stations located on Jess Avenue (Payran Pump Station), Vallejo Street (Vallejo Pump Station), and Lakeville Street (Wilson Pump Station).
Operations (Water Supply and Distribution, Sewer Collection, Storm Water Conveyance) is located at the Water Field Office. The Administration cost center includes transfers to CIP accounts and intergovernmental charges, training and education for staff, and membership costs to water industry associations including the American Water Works Association (AWWA) and the Association of California Water Agencies (ACWA).
Water Customer Service is part of the Operations division and works closely with the Finance Department to investigate and resolve customer-billing issues by addressing customer billing inquiries related to high water use or leaks, responding to customer service orders for meter turn-ons/off and read checks, and requests for utility billing system support. Cross-Connection and Backflow Prevention is responsible for managing the state mandated cross-connection control program and works closely with the building department to ensure each water and fire service connection is safe.
The wholesale purchase of the City’s water supply from Sonoma Water is accounted for by its own water enterprise cost center. Overseen by the Operations division, this cost center funds the purchase of the City’s water supply from Sonoma Water under the terms of the wholesale water purchase agreement (Restructured Agreement for Water Supply). Potable water from Sonoma Water and ten (10) local active municipal wells is transmitted and distributed to City customers through six (6) water pump stations, nine (9) active storage reservoirs with 11.0 million gallons of capacity, five (5) pressure zones, and over 240 miles of transmission and distribution pipelines serving approximately 21,123 metered customers with over 7,800 valves and appurtenances. Operations is responsible for the operation, maintenance, and repair of the City’s water distribution pipelines. The City’s water distribution system and operations is overseen by a California state-certified Water System Chief Operator to assure water quality and reliability of service of the system. Quality and reliability are achieved by overseeing continuous testing for pathogens and chlorine levels as well as continuous monitoring of water deliveries, leaks, and system pressures.
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The Storm Drain Utility, managed jointly by the Operations and Environmental Services divisions, encompasses the City’s non-wastewater related stormwater maintenance and operations activities and regulatory compliance functions, including maintenance of City drainage waterways, drainage inlets, manholes, and culverts. The City’s Municipal Separate Storm Sewer System (MS4) permit activities and flood alert system are funded by this cost center.
The water enterprise funds the Water Resources and Conservation Division, which implements programs and initiatives that promote sustainable water management, water conservation outreach, drought response, and long-term water supply planning. Efforts include hands on support like Water-Wise House Calls and Laundry-to-Landscape greywater system workshops, along with incentives for water efficient upgrades such as turf replacement, appliance rebates, and free conservation devices. The division also engages the community through demonstration gardens, educational events, and outreach via social media, direct mail, and regional partnerships. Through the general fund, the Water Resources and Conservation Division supports watershed management and environmental stewardship programs that enhance natural flood resilience and habitat conservation.
Major Accomplishments and Highlights
Here are a few examples of recent accomplishments and programs within each area of Water Resources and Utilities:
• Environmental Services (ECWRF and Environmental Services):
o Continued planning and expansion of the urban and agricultural recycled water systems to serve additional customers. Additional sites were connected to the city’s recycled water system, including Meadow School in 2024. o Continued sustainable biosolids management practices and participated in the Bay Area Biosolids Consortium, which is focused on upcoming regulatory requirements.
o In 2024, the ECWRF treated 2,069 million gallons of wastewater and produced 549 million gallons of recycled water.
o The City entered into an agreement for the installation of a floating solar array to provide sustainable power to the ECWRF. Construction began in Fall 2024 and should be completed by December 2025.
o Construction continues on the tertiary recycled water treatment expansion project to expand recycled water production capacity. This project received a $3.6M grant award from the Department of Water Resources through NBWRA. o Completed construction of new effluent outfall and pipeline. A new outfall pipeline and discharge structure were constructed and placed into service in October 2023. The old pipeline was abandoned in place, and the old discharge structure located in the Petaluma River was removed in October 2024. o Actively managed the application of pretreatment requirements on the City’s industrial users while many industries were navigating significant changes to their operations.
o Issued permits for significant industrial users and non-significant categorical users.
o Updated and reissued a general permit for minor industrial food and beverage producer facilities.
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o Performed 135 restaurant grease removal device inspections to confirm devices are being properly maintained.
o Performed 27 dental amalgam separator inspections to confirm devices are being properly maintained and pollutants are not being discharged to sewer. o Updated local limits to increase the copper and nickel allowable concentrations for industrial users.
o Updated fine policy for food service establishments.
o Performed initial tasks to comply with the Petaluma River bacteria total maximum daily load (TMDL), including participating in a coordinated sampling project for the Petaluma River watershed.
o The ECWRF Water Quality Laboratory is Environmental Laboratory Accreditation Program (ELAP) certified, as of January 1, 2024, and adopted the NELAC Institute (NELAP/TNI)-2 quality management system.
o Entered all lab equipment into a computerized maintenance management system.
• Operations – Water Distribution:
o Completed a Draft Updated Water Master Plan, including projected water demands for near term development projects, and an updated 10-year rehabilitation and replacement program.
o Created and implemented a Cross Connection Control Program, including initial site hazard assessment for all water service connections to comply with new state regulatory requirements.
o Substantially completed the Advance Metering Infrastructure (AMI) water meter conversion project, including opt-out policy for residents who do not wish to have their meter converted.
o Completed initial inventory of water service pipelines to comply with the federal lead-copper rule requirements. Developed a program to replace customer galvanized piping, in compliance with state and federal guidelines. o In collaboration with the CIP Division, completed the recoating and rehabilitation of Manor Tank.
o Continued with the replacement of undersized water mains, failing and leaking water services and non-functioning isolation valves.
o In collaboration with the CIP Division, completed design and construction of the Hardin Tank Recoating and Rehabilitation Project.
o Continued the water main flushing program utilizing the NO-DES zero discharge flushing truck.
o Staff responded to over 2,730 customer service calls and repaired 505 service, main, and hydrant leaks in the water distribution system.
• Operations – Sewer Collection:
o Implemented the new Sewer System Management Plan (SSMP) and Improvement Action Plan to address efforts to reduce bacteria reaching the Petaluma River to meet TMDL requirements.
o Utilized a new sewer inspection camera to inspect over 102,900 linear feet of sewer mains. Inspections are used for condition assessments to prioritize pipeline replacement projects and ultimately reduce I&I into the sewer collection system.
o Cleaned over 159,500 linear feet of sewer mains as part of our preventative maintenance plan.
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o Implemented a new manhole condition assessment program with a consultant to prioritize manhole rehabilitation projects. The program inspected 532 manholes. o Completed a Draft Updated Sewer Master Plan, including projected wastewater flows using near term development projects, and an updated 10-year rehabilitation and replacement program.
• Operations – Stormwater Collection:
o Identified priority creek maintenance projects and began efforts for obtaining permitting to complete construction. This was completed in conjunction with updating the Citywide Creek Maintenance Plan and its efforts to obtain regulatory permitting.
o Responded to creek clearing and tree removal from city-owned creeks and drainages to improve stormwater collection efficiency.
o Completed floodwall joint sealing maintenance. Continued efforts to identify rehabilitation and maintenance requirements.
o Completed design of the Wilson Street Storm Pump Station. o Performed over 80 high priority storm drain outfall inspections as part of the creek maintenance plan.
• Water Resources & Conservation:
o This year, 31 high-efficiency toilets were installed through rebate programs, along with 14 rebates for high-efficiency clothes washers, helping residents reduce indoor water use. Additionally, 252 households participated in Water- Wise House Calls to identify efficiency improvements.
o Outdoor conservation efforts led to the replacement of 40,454 square feet of residential lawn through the Mulch Madness program, supported by 38 rebates, along with an additional 54,336 square feet of commercial lawn, supported by 5 rebates, while 10 households installed Laundry-to-Landscape graywater systems to promote water reuse.
o Continued planning and expansion of the urban and agricultural recycled water systems to serve additional customers. Additional parks and irrigation areas sites along Maria Drive are now connected to the city’s recycled water system, including Meadow School in 2024.
o Made significant progress on Integrated Water Management Plan (IWMP) to identify and analyze potential water supply alternatives to help meet the City’s goal of increased local water supply resiliency.
o Implemented water loss policies to accompany the City’s new Advanced Meter Infrastructure (AMI).
Goals and Priorities
• Environmental Services:
o Complete and submit Report of Waste Discharge to Water Board for renewal of the ECWRF’s NPDES permit.
o Initiate a study to address the increased organic loading at ECWRF, which now exceeds 80% of its current design capacity.
o Implement new and ongoing requirements of the City’s MS4 stormwater permit, which is anticipated to be issued in 2025.
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o Continue to comply with tasks to address water quality monitoring and other actions related to the Petaluma River Bacteria TMDL. Maintain a robust pretreatment program to protect our community’s investment in the ECWRF. o Prepare a recycled water program financial analysis and rate study. o Participate in in-person pollution prevention public outreach events. o Create additional public and commercial business outreach materials for pollution prevention.
o Comply with National Pollutant Discharge Elimination System (NPDES) permit requirements at ECWRF.
o Maintain equipment at ECWRF to continue to provide a robust and reliable treatment process at the ECWRF.
o Select an engineering firm to provide ongoing engineering support for maintenance projects which require engineered drawings and project specifications.
o Dewater and clean Digester 2 to determine the extent of repairs needed to address corrosion and structural issues.
o Complete Phase 1 of the Chemical Improvement Project. o Receive Division of Drinking Water approval for the expanded tertiary UV disinfection process.
o Support CIP through the design process and construction for multiple major improvement projects for ECWRF and sanitary sewer pumping stations.
• Operations – Water Distribution:
o Complete Final Updated Water Master Plan and develop pipeline replacement program in collaboration with CIP and the Streets Division. o Update the 5 and 10-year water main rehabilitation and replacement program as projects are completed.
o Continue the water main flushing program utilizing the NO-DES zero discharge flushing truck.
o Continue water main, isolation valve, and fire hydrant maintenance activities to align with state requirements.
o Continue water service replacement program to replace failure prone water service connections and reduce water loss.
o Update the inventory for water service lines and explicitly identify the material of all utility owned and customer owned water service lines. o Begin development of a meter testing program and identify other opportunities to reduce water loss within the distribution system.
o Implement a new asset management program for all water, sewer, storm, and street infrastructure to track level of effort, costs, and maintenance hot spots. o Advance the City’s climate action goals with completing the electrification of crew support vehicles and transition to renewable diesel for super duty crew vehicles. o Implement the new Cross Connection Control Program and develop schedule and budgeting for compliance with state regulations.
• Operations – Wastewater Collection:
o Complete Final Updated Sewer Master Plan and develop pipeline replacement program in collaboration with CIP and the Streets Division. o Continued implementation of the Sewer System Management Plan (SSMP) and Improvement Action Plan aimed at reducing bacteria reaching the Petaluma River.
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o Complete condition assessments for all sewer mains within 1,000 feet of the Petaluma River and its tributaries.
o Continue the manhole inspection and condition assessment program. Update the priority manhole rehabilitation program accordingly. o Continue smoke testing program to locate and identify sources of infiltration and inflow into the wastewater collection system.
o Create and implement a sewer force main and large diameter pipeline inspection and condition assessment program to comply with state regulatory requirements. o Continue efforts to completely eliminate sanitary sewer overflows (SSO’s) within the city’s wastewater collection system.
• Operations –Stormwater Collection:
o Complete the Wilson Street Pump Station rehabilitation project. o Complete priority creek maintenance projects and finalize updated Citywide Creek Maintenance Plan. Begin obtaining permits for the maintenance plan. o Continue replacing and rehabilitating broken catch basins and grate inlets within the storm conveyance system.
o Complete recommended rehabilitation of the city’s floodwall as identified in the U.S. Army Corps of Engineers (USACE) report.
o Update the city’s stream/precipitation gauge software and website to closely match neighboring jurisdictions. Include camera monitoring of stream gauges to enhance flood response efforts.
• Water Resources and Conservation:
o Comply with water loss standards (SB555) and urban water use objectives that include indoor, outdoor, commercial, industrial, and institutional irrigation uses and allowed water loss (AB 1668 and SB 606).
o Complete the Integrated Water Master Plan (IWMP) and identify near and long- term water supply projects to be implemented for local water supply resiliency. o Complete feasibility study for Aquifer Storage and Recovery project. o Perform hydraulic study of the Corona Creek area in preparation for future restoration project.
o Complete the City’s Citywide Creek Maintenance Program and obtain regulatory permits to implement the program.
o Expand urban recycled water customers to newly installed recycled water lines, particularly along Maria Dr.
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Performance Measures
Strategic
Goal Description Measure Type
FY
2023/24
Measure
FY
2024/25
Target
FY
2024/25
Measure
FY
2025/26
Target
A City
That
Works
Compliance with NPDES
Regulations
Violations
(CY) 0 0 0 0
A City
That
Works
Compliance with Recycle
Water Permit
Violations
(CY) 0 0 0 0
A City
That
Works
Inspect and sample
significant industrial users
per pretreatment
requirement
Number of
inspections/sampling
events
5/10 4/8 4/8 4/8
A City
That
Works
Recycled Water
Production
Output
(CY)
501
(CY2023 N/A 549
(CY2024) N/A
A City
That
Works
Wastewater Treated
(millions of gallons/year)
Output
(CY)
1,982
(CY 2023) N/A
2,069
(CY 2024)
TBD
N/A
A City
That
Works
Recycled Water as
Potable Offset (%) Output 2.88%
(CY 2023) 3% TBD 3.25%
A City
That
Works
ELAP Certification
Performance Testing
Passing Acceptance
Criteria
100%
(CY2023) 100% 100%
(CY2024) 100%
A City
That
Works
Residential Water Use
(Gallons Per Capita Per
Day)
Output 68.88
(CY 2023) 70 72.6 70
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Departmental and Program Budget Overview
Key Budget Highlights and Changes by Program
A Water Resources and Utilities Department budget of $88,461.390 is recommended for 2025/26. This represents an increase of $6,419,996 over 2024/25 and includes budgets in the Water, Wastewater, and Storm Drainage funds.
Total salaries are recommended at $10,301,395, representing an increase of $307,339 over 2024/25 due to due to negotiated cost of living adjustments, reclassifications and changes in staffing allocations, step advancements through the salary ranges, and additional positions- Lead Environmental Compliance Inspector and a Sr Management Analyst.
By Departmental Program 2024 Actual 2025 Revised 2026 Budget Waste Water Administration 22,705,950 32,940,631 40,230,103 Waste Water Collect System 1,205,818 2,119,944 1,801,119 Waste Water Sewage Pump Stations 773,869 960,121 916,830 Waste Water Customer Svc 60,064 85,800 120,000 Waste Water Industrial 708,320 496,571 664,136 Waste Water Reclamation 1,299,648 1,840,320 1,765,926 Waste Water Storm Drain 97,161 126,491 231,539 Waste Water Ellis Creek Operations 9,418,600 10,359,824 11,614,073 Waste Water Laboratory - 288,900 288,900 Waste Water Fund 36,269,430$ 49,218,602$ 57,632,626$ Water Admin 7,339,368 12,015,062 10,535,693 Water Conservation 629,732 1,616,581 1,455,950 Water Customer Services 1,347,205 1,240,786 1,277,109 Water Leak Detect/cross Connect 143,663 171,628 167,675 Water Pumping 526,473 772,582 651,391 Water Source Of Supply 8,108,905 10,521,915 10,500,000 Water Transmission & Distribution 3,611,558 5,045,085 4,463,840 Water Fund 21,706,904$ 31,383,639$ 29,051,658$ Storm Drainage Utility Admin 574,442$ 1,439,153$ 1,777,106$ Total Water Resources and Utilities 58,550,776$ 82,041,394$ 88,461,390$ By Account Type 2024 Actual 2025 Revised 2026 Budget
Salary 8,137,369$ 9,994,056$ 10,301,395$ Benefits 3,578,981 4,425,998 4,983,390 Services & Supplies 29,065,403 36,583,673 36,709,650 Utilities 3,110,053 2,763,681 2,809,950 Capital Expenditures - 720,186 578,300 Transfers 14,658,970 27,553,800 33,078,705 Water Resources And Utilities 58,550,776$ 82,041,394$ 88,461,390$ 194
WATER RESOURCES & UTILITIES
Total Benefits are recommended at $4,983,390 and represent an increase of $557,392 over 2024/25. The increase in benefits costs is associated with the new positions mentioned above as well as increased retirement, employee benefit selections, and workers’ compensation costs.
Total services and supplies are recommended at $36,709,650, which includes costs for wholesale water purchases, biosolid hauling, maintenance, as well as debt service payments, inspections, maintenance of water supply and wastewater lines, lab testing, and purchases of fuel and other supplies. This is an increase of $125,977 over 2024/25 which reflects new consulting service costs for an Ellis Creek loading study and maintenance project engineering. Risk Management and Information Technology intragovernmental charges are also included in this category. Information Technology charges are unchanged from the prior year and cover costs necessary to stay up to date with current technology/security needs. Risk Management charges have declined slightly resulting from a one-time partial rate holiday initiated in the budget development process, to maintain fund reserves at appropriate levels and is not intended to be reoccurring.
Utilities are recommended at $2,809,950, an increase of $46,269 over 2024/25 primarily representing electrical and water increased rates.
Capital expenditures are recommended at $578,300, reflecting a decrease of $141,886 from 2024/25. A new electric van and vehicles, skid steer, and a chipper are included in the recommended budget as well as ongoing lease costs for existing vehicles. More details can be found in the citywide capital vehicle and equipment appropriations section included in this budget document.
Transfers out are recommended at $33,078,705 representing an increase of $5,524,905 over 2024/25 primarily due to plans for increased capital project and program activity with associated transfers. Transfers are primarily from the Wastewater fund at $27.5 million, and the Water fund at $5.1 million. Storm Drainage also includes a recommended $435k transfer. Funding for the ERP transition is included, and this transfer represents funding allocated city-wide for Petaluma Innovate, the City’s lengthy and complex project transitioning to a new Enterprise Resource Planning (ERP) system.
Please see the CIP section of the budget document for more information on all City capital projects.
Looking Forward
The Water Resources and Utilities Department faces both challenges and opportunities in the years ahead as the City continues to grow and evolve.
Some of the major challenges that the department must address include the following:
1. Aging Infrastructure: Many of the City's water, sewer, and storm system elements are aging and in need of repair or replacement. The department must 195
WATER RESOURCES & UTILITIES
thoughtfully prioritize all CIP projects while balancing the need for infrastructure improvements with the myriad needs across the community.
2. Climate Change: Petaluma is vulnerable to the impacts of climate change, including sea level rise and more frequent and severe weather events. The department will be developing strategies to protect, avoid, mitigate, prepare for, and adapt to these impacts, which will be supported by a citywide Flood Adaptation Master Plan (FAMP).
3. Finite Resources: The department continues to find ways to maximize resources, both in-house and through third party consultants. Moreover, we seek new sources of funding to address these challenges, which involve a robust grant program focus, to creatively explore all potential funding opportunities on a project-by-project basis.
4. Resource Development and Limitations: As a community that is rebuilding, so is the organization itself, with many new team members coming on board in just the last 2-3 years. Training, development, and the implementation of best practices and standard operating procedures takes time. While already seeing increased benefits from our workforce enhancements, there is much to look forward to in our ever-increasing capacity to move capital and non-capital projects and initiatives forward.
A summary of opportunities for the department include:
1. Infrastructure Improvement Projects: There are numerous infrastructure improvement projects on the horizon, including upgrades to the City's water and wastewater systems. These projects will help to modernize the City’s infrastructure and improve the safety, reliability, and quality of water and wastewater services.
2. Increased Staffing and Training: Over the past two years, the Water Resources and Utilities Department has filled numerous staffing vacancies across many of its divisions, some of which have been difficult to fill. The department is now focused on building a culture of excellence through training and developing both new and existing employees. We are a people and service-oriented organization:
a fully staffed and trained department will improve efficiency and effectiveness by accomplishing more projects and programs, enhancing operations, implementing innovative solutions, and improving customer service.
3. Smart City Technologies: The department will leverage smart technologies, such as software tools, sensors, data analytics, and automation, to improve the efficiency of City operations, reduce costs, and enhance the quality of services provided to residents. By embracing new technologies, the department can help to create a more innovative and responsive city. Examples include an asset management system, construction and project management software, advanced metering infrastructure, and other technology improvements.
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CAPITAL IMPROVEMENT BUDGET
City of Petaluma
Capital Improvement Budget and
Five-Year Capital Improvement Plan
Fiscal Years 2026-2030
The Capital Improvement Plan is vital to our City. It is a plan for physical improvements to public facilities and infrastructure throughout Petaluma. These programs are intended to improve and maintain safety, mobility, and lifestyles of Petalumans. The five-year Capital Improvement Plan (CIP) is revised annually to include new projects, update existing projects, reflect changes in initiatives and priorities, and extend the plan an additional year. In addition, and in some cases, the City's infrastructure is also based on the City Council priorities listed below. For more information about project status and schedules -- https://cityofpetaluma.org/capital-improvements-program/
CAPITAL PROJECTS
A capital project is a project that helps maintain, improve, or adds to the City’s infrastructure. Typically, a project is considered a capital project if it results in an acquisition of a new asset or new construction, improvements, expansion, renovation, rehabilitation, repairs, or replacement of an existing City facility or other infrastructure assets greater than $50,000. It usually requires a large investment of funding and staff resources. A capital project is expected to result in a long-term benefit to the City and its residents.
CITY COUNCIL GOALS AND PRIORITIES
The City Council reviews its Goals and Priorities annually. In 2021, two workshops were held to solicit community input and feedback. Based on this feedback, the City Council finalized the goals and priorities for the fiscal years 2021-2023. A Council meeting was held in February of 2025 to review and revise goals into the future. The City Council Goals and Priorities can be found at https://cityofpetaluma.org/city-goals- and-priorities/. The priorities guide both budget development and department priority-setting. The public has the opportunity to provide input into this process as well as during the annual budget review. The following guides the City Council’s priorities:
• A CITY THAT WORKS: Ensure a fiscally and organizationally sustainable City that is innovative and efficient; provides valued services promptly and professionally; engages the community, and proactively funds, designs, installs and maintains City infrastructure that is safe, functional, and sustainable and serves the needs of our residents.
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CAPITAL IMPROVEMENT BUDGET
• SAFE COMMUNITY THAT THRIVES: Support facilities and design programs that create a healthy, resilient, and engaged community that is prepared, safe, and housed. • ECONOMY THAT PROSPERS: Encourage a thriving business environment that results in a strong, diverse, resilient economy and supports community prosperity. • ENVIRONMENTAL LEGACY: Climate Change/Sustainability and Climate Action Plan. Preserve and protect Petaluma’s environment for future generations and become a municipal leader in sustainability by protecting our river and open space; reducing and drawing down greenhouse gas emissions; and encouraging sustainable development.
• SPACES AND PLACES: Create inviting natural and built places and spaces for contemplation, play, arts, and connection while celebrating our history and encouraging community pride.
BUDGET PREPARATION
The City's annual budget process begins in November with the development of the capital project budget, and concludes with the release of the adopted budget by July 1st. The operating and capital budgets are developed on behalf of the City Manager, in consultation with senior management, and the Director of Finance, by utilizing six main sources of information:
• City Council’s Top Goals and Priorities and other City Council direction • Community input
• Available funding and fiscal sustainability
• Service level and infrastructure needs prioritization • Comprehensive Plan, which contains the City's official policies on land use and community design; transportation; safety; natural environment; community services and facilities; and business and economics
The planning phase begins annually in November for the next budget cycle. In conjunction with the planning phase, an in-depth analysis of available funding for the Capital Improvement Program (CIP) is conducted by the Finance Department with assistance provided by project managers and the Public Works Department administration team. The CIP team develops and submits preliminary project lists to the City Manager for discussion. The executive team reviews the proposed plan, and the preliminary Capital Improvement Plan is finalized for City Council consideration. In conjunction with the annual budget process, the City prepares a longer-term Capital Improvement Plan that identifies anticipated project expenditures over a five-year time frame.
The Capital Plan represents the spending plan for infrastructure improvements. The goal of the CIP is to create a roadmap of the projected infrastructure improvement needs of the City, and to assist in the planning and budgeting process. The first year of the CIP is known as the Capital Budget. It is intended to closely reflect that year’s projected spending on capital projects and is adopted in conjunction with the City’s annual operating budget. Projects and funding sources identified in subsequent years are not formally approved until the budget for those years is legally adopted. Beyond the first year, the CIP serves as a planning and budgetary management tool and is subject to annual re-evaluation to reflect community needs and priorities, as well as funding opportunities and challenges. A CIP is necessary as the City has an extensive portfolio of capital assets and infrastructure. Maintaining these assets is a costly and time-
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CAPITAL IMPROVEMENT BUDGET
consuming enterprise that requires significant resources and constant attention. Additionally, Petaluma is an aging city and thus, its infrastructure faces challenges that other younger cities do not.
CAPITAL PROJECT PRIORITIZATION
As part of developing the capital budget, staff must prioritize how to allocate limited resources over a variety of competing needs and demands. Projects and funding levels are prioritized utilizing several criteria, including:
Health and safety implications;
Continuing projects;
Grant funded projects;
Legal and/or regulatory requirements;
Funding required; and
Feasibility, scope, and level of resources required.
In addition to the criteria outlined above, the prioritization of Enterprise Fund CIP projects is determined by the department that manages the Enterprise Fund, and planned using additional factors such as the department's operational needs, funding availability, CIP strategic plan, master plans, and oversight committee direction.
CAPITAL PROJECT FUNDING
Due to the age of the City’s infrastructure and finite resources allocated to infrastructure, the City’s unfunded needs have increased over the years and are anticipated to continue increasing every year. For example, the City’s street infrastructure is likely to deteriorate further without a significant infusion of new resources. The sales tax adopted by voters in 2020 has provided a much-needed increase in resources and an opportunity to leverage millions in additional grant funding available for the City to address its infrastructure needs. However, despite this supplemental funding, City facilities and infrastructure needs continue to exceed available funds. For the next five years, the minimum unfunded (or undetermined) needs in facilities, parks, public works and streets exceeds $139m. It is anticipated that infrastructure costs will continue to increase through typical wear and tear in the coming years, plus the pressures of long- deferred maintenance.
The Capital Improvement Plan serves as just one tool in measuring the resources necessary to meet our most critical needs. Maintaining an updated CIP that includes both funded and unfunded projects meets reporting requirements in some cases and assists with obtaining grant funding in others. The City also maintains a number of other major infrastructure needs that are not identified in the CIP. More information about funded and unfunded projects can be found in the summary section under fully funded and unfunded projects. In addition, each CIP category includes a summary list of all projects, the percentage of project costs currently funded as well as funding sources.
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CAPITAL IMPROVEMENT BUDGET
DOCUMENT LAYOUT
The Capital Budget document provides readers with a project narrative, cost estimates, methods of financing, and estimated start and completion dates for the City of Petaluma’s CIP for the next five years as well as estimates for current year activity. The document incorporates a summary section that includes a capital projects overview, project funded status, fiscal year sources and uses and appropriations by project. Following the summary section, the document is organized by category and includes:
Airport Capital Projects
Facilities Capital Projects
Parks Capital Projects
Public Works Capital Projects
Recycled Water Capital Projects
Surface Water Capital Projects
Transit Capital Projects
Wastewater Utility Capital Projects
Water Utility Capital Projects
Each section contains the following elements:
Capital Projects Summary Budget Overview: Each category includes a summary of the entire five-year CIP plan and includes total uses and sources estimated over the five-year period. Current year estimates are included as well as budgeted costs for the upcoming year and projections over the remaining four years.
Capital Projects Narrative Pages: Following the Summary Budget Overview in each category, the reader finds information for each capital project, both recurring and non-recurring projects. Each one-page narrative includes a description and justification for the project, estimated start and completion dates as well as the project manager, if assigned, and department representative/department responsible for delivery of the project. A picture of each project is also included.
Financial Overview: Each project also includes a financial overview that provides historical expenditure levels, current year estimates and an estimated spending plan for the duration of the project over the five- year period. The uses are categorized by the project phase. The sources are categorized by the type of funding and the fund providing the funding.
ADDITIONAL CIP SUPPORT
In addition to the City’s Capital Improvement Program, significant effort goes into projects within the City’s jurisdiction and may not be represented in the Capital Plan. Some of these projects may be funded by other agencies and therefore not included in the City funded Capital Improvement Program or are other citywide initiatives that do not technically qualify as capital projects but utilize CIP staff support. Below are some recent examples of major initiatives that were initiated and/or completed outside of the City’s CIP and have utilized and, in some cases, continue to utilize, significant City resources:
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CAPITAL IMPROVEMENT BUDGET
Emergency Project Work – In addition to planned capital projects, the CIP team provides project management and technical support for emergency infrastructure repairs throughout the city.
Examples of recent emergency project work include a sewer replacement at 1st and F Street and a sewer replacement at Jefferson Street.
Petaluma River Dredging – The CIP team continues to provide support and coordination with the U.S. Army Corps of Engineers (USACE) for the maintenance dredging of the Petaluma River, anticipated to take place in Summer 2025. To support sustainable practices and ensure the successful completion of this project, the City is cost-sharing a portion of the dredging expenses with USACE and the State Coastal Conservancy (SCC) to transport dredged material to a beneficial reuse site.
Fairgrounds – With the expiration of the 50-year lease to the State, the City of Petaluma has regained control of the 55-acre Fairgrounds property. As the City takes on management responsibilities, significant staff effort has been dedicated to addressing deferred maintenance issues to ensure a safe and functional space for public use. CIP staff have been providing engineering and computer-aided design (CAD) support to inventory and map the Fairgrounds facilities for site planning and event space programming as well as support for implementing future improvements.
ECWRF Floating Solar – This project will install a floating solar array on Pond 3 at the Ellis Creek Water Recycling Facility (ECWRF) to generate renewable energy and reduce operational costs. The City entered into a Power Purchase Agreement (PPA) with White Pine Renewables, covering all project costs, with projected cumulative savings of $9 million over 20 years. This initiative supports the City’s commitment to sustainability and energy efficiency by utilizing available surface area for solar generation while maintaining the functionality of ECWRF operations.
Sonoma County Library – While the Petaluma Regional Library undergoes facility upgrades through the Sonoma County Library agency, CIP staff have provided support by developing engineering plans and providing project management for the accessibility-related upgrades to improve accessibility for all users.
Sonoma-Marin Area Rail Transit (SMART) North Station Coordination – CIP staff continue to collaborate with the Sonoma-Marin Area Rail Transit (SMART) to seamlessly integrate new Petaluma North SMART station and multi-use path with the City’s transportation network and active transportation goals.
Float House – CIP staff are providing project management and coordination for the Float House license agreement and event permitting, as well as assisting with temporary accommodations to support ongoing use during dredging.
Safe Streets Nomination Program – This program was developed to allow residents to nominate streets and intersections for potential “quick-build” traffic calming and safety improvements, increasing community involvement in identifying areas of concern. CIP staff support the implementation of selected projects by providing design work and engineering support to ensure effective and timely improvements.
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CIP TABLE OF CONTENTS
CIP- Table of Contents
Capital Projects Overview ................................................................................................ CIP-i Table of Contents ............................................................................................................CIP -vi Project Funded Status ..................................................................................................... CIP-x Partially Funded/Unfunded Citywide Capital Infrastructure Needs ............................... CIP-xii FY 2025-26 CIP Uses and Sources ................................................................................... CIP-1 FY 2025-26 CIP Budget by Project................................................................................... CIP-2 Projected CIP Project Budgets through FY 2029-30........................................................ CIP-4
Airport Projects ...................................................................................................................... CIP-5 C61502117 Safety Zone Improvements by Drainage Channel ...................................... C IP-7 C61502009 Taxiway A Rehabilitation ............................................................................ CIP-8 C61502319 South Taxilane B Rehabilitation ................................................................. CIP-9 New Runway 11-29 Seal Coat .......................................................................... CIP-10 New North Hangar Ramp Seal Coat ................................................................. CIP-11 C61502420 Airport Fuel Facility Improvements ......................................................... CIP-12 C61502218 Airport Emergency Power Backup ........................................................... CIP-13
Facilities Projects .................................................................................................................. CIP-15 C11202433 Fire Stations 1, Seismic Retrofit, and Improvements ............................... CIP-17 C11202434 Fire Station 2, Kitchen Replacement and Renovations ............................ CIP-18 C11202328 Fire Station 3, Restroom Separation and Station Renovations ................ CIP-19 C11202431 Petaluma Public Safety Facility ................................................................ CIP-20 C11502435 Temporary Fire Station ............................................................................ CIP-21 New Fire Prevention Bureau Interior Improvements ....................................... CIP-22 C11501911 Fire Reserve Apparatus Storage & Paving ................................................ CIP-23 C11201501 Petaluma Museum Seismic Retrofit ......................................................... CIP-24 Various Library Facility Enhancement and Expansion ........................................... CIP-25 New Keller Street Garage- interior light retrofit and replacement .................. CIP-26 C11202223 City Facilities HVAC Replacements ........................................................... CIP-27 C11202018 Emergency Power Backup City Hall & Police Headquarters .................... CIP-28 C11502015 Electric Vehicle Chargers ......................................................................... CIP-29 New City Facilities Energy Efficiency Projects .................................................. CIP-30 New City Facilities Fire Alarm System .............................................................. CIP-31 New Community Center Interior Repairs ......................................................... CIP-32 New City Hall West Wing Improvements ......................................................... CIP-33
Parks Projects ....................................................................................................................... CIP-35 C14501607 Petaluma Community Baseball Field Phase 1 .......................................... CIP-36 New Petaluma Community Baseball Field Phase 2 .......................................... CIP-37 New Parks Master Plan .................................................................................... CIP-38 C14502114 Lynch Creek Trail / Crosstown Connector ................................................ CIP-41 C14502317 Kenilworth Park Revitalization Plan ......................................................... CIP-42 E14502024 Marina Dredging ...................................................................................... CIP-43 E14402237 Petaluma River Dredging Program ........................................................... CIP-44
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CIP TABLE OF CONTENTS
C14502008 Lucchesi Turf Field Replacement ............................................................. CIP-45 C14402215 Lucchesi Skate Park .................................................................................. CIP-46 New Swim Center Facility Assessment ............................................................. CIP-47 C14202319 Prince Park Concession and Restroom Facility Remodel/Repair ............. CIP-48 New 1 st and C Street Fishing Dock and Community Space ............................... CIP-49 New Senior Services Parking Lot Reconstruction & Striping ............................ CIP-50
Public Works Projects .......................................................................................................... CIP-51 C16102433 Petaluma North SMART Station Access Improvements ........................... CIP-53 C16501602 Downtown Pedestrian ADA Improvements ............................................. CIP-54 C16502430 Downtown Public Restroom & Beautification ......................................... CIP-55 C16102536 Safe Streets Quick Builds ......................................................................... CIP-56 New Crosswalk and Signal Improvements ....................................................... CIP-57 New SMART Pathway Extension: Lakeville Street to N. Water Street .............. CIP-58 C16102032 Pedestrian Improvements Citywide ......................................................... CIP-59 New Corona Road Bicycle/ Pedestrian Crosstown Connector ......................... CIP-60 C16401824 Caulfield Bridge Crosstown Connector ................................................... CIP-61 C16402252 Pedestrian Bridge Renovations ................................................................ CIP-62 C16101519 Petaluma Rivertrail – US 101 & Rail Undercrossings ............................... CIP-63 New Electric Utility Undergrounding ............................................................... CIP-64 C16401925 Citywide Bridge Repair ............................................................................. CIP-67 E16402353 Public Works Facilities Site Analysis ......................................................... CIP-68 C16502022 Trestle Rehabilitation ............................................................................... CIP-69 C16102435 Pavement Restoration- Howard Street .................................................... CIP-72 C16102434 Pavement Restoration- Rainier Avenue ................................................... CIP-73 C16102251 FY 25/26 Pavement Restoration-D Street ................................................ CIP-74 New FY25/26 Pavement Restoration – Caulfield Lane ..................................... CIP-75 New FY 25/26 Pavement Restoration- St. Francis Drive .................................. CIP-76 New FY 25/26 Pavement Preventative Maintenance ...................................... CIP-77 New FY 26/27 Pavement Restoration & Maintenance .................................... CIP-78 New FY 27/28 Pavement Restoration & Maintenance .................................... CIP-79 New FY 28/29 Pavement Restoration & Maintenance .................................... CIP-80 New FY 29/30 Pavement Restoration & Maintenance .................................... CIP-81
Recycled Water Projects ...................................................................................................... CIP-83 C66401416 Tertiary Filtration System Expansion ....................................................... CIP-84 C66501936 Agricultural Recycled Water System Expansion – Adobe Road (Phase1). CIP-85 New Agricultural Recycled Water System Expansion - Adobe Road (Phase 2) CIP-86 New Agricultural Recycled Water Pipeline Expansions Program ..................... CIP-87 C66401302 Agricultural Recycled Water System - Turnout and Meter Replacements ..... CIP-88 New Recycled Water Fill Station ...................................................................... CIP-89 C66502347 Urban Recycled Water System Expansion – Park Irrigation Conversions CIP-90 New Urban Recycled Water Expansion - Rainier Extension ............................. CIP-91 New Urban Recycled Water System Expansion - St. Francis Drive ................... CIP-92 New Urban Recycled Water System Expansion - Oakmead Extension ............ CIP-93
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CIP TABLE OF CONTENTS
New Urban Recycled Water System Expansion – Baywood Dr/101 Crossing Ext CIP-94 New Urban Recycled Water System Expansion - Corona Loop Extension ....... CIP-95 New Urban Recycled Water Pipeline Expansions Program .............................. CIP-96 New Booster Pump Station 2 & Recycled Water Distribution System Impr..... CIP-98
Surface Water Projects ......................................................................................................... CIP-99 C16501931 Storm Drain Trash Capture Device Pilot ................................................ CIP-100 C16502254 Wilson Stormwater Pump Station & Outfall Upgrades .......................... CIP-101 C16502431 Corona Creek Flood Reductions and Habitat Enhancement ................. CIP-102 C16301518 Old Corona Road Water Quality Mitigation .......................................... CIP-103
Transit Projects ................................................................................................................... CIP-105 C65502214 Transit Fleet Charging Infrastructure ..................................................... CIP-106 C65502211 Bus Stop Improvements ......................................................................... CIP-107 C65202110 Transit Administration Building Roof Overlay ........................................ CIP-108 C65202415 Transit Facility Renovation ..................................................................... CIP-109 C65502212 Transit Facility Fence and Gate Improvements...................................... CIP-110
Wastewater Utility Projects................................................................................................ CIP-111 C66501518 CNG Fueling Station at ECWRF .............................................................. CIP-112 C66401728 Ellis Creek High Strength Waste Facilities .............................................. CIP-113 C66501838 Ellis Creek Outfall Replacement ............................................................. CIP-114 C6652032 PIPS Parallel Fore Main .......................................................................... CIP-115 C66501930 PIPS Upgrade and Pump Replacement .................................................. CIP-116 New PIPS Force Main Rehabilitation .............................................................. CIP-117 New ECWRF Digester (#2)Repair ................................................................... CIP-118 C66501840 ECWRF Chemical System Upgrade ......................................................... CIP-119 C66402349 E CWRF Oxidation Pond Flow Structure Rehab ...................................... CIP-120 C66402246 Sewer Forcemain/ Rehabilitation Program ............................................ CIP-121 C66402348 Sewer Main Replacement – Howard St & Various Locations ................ CIP-122 C66402350 Sewer Main Replacement - D Street ...................................................... CIP-123 New Sewer Main Replacement - St. Francis and Various Locations .............. CIP-124 New Sewer System Rehab-Replacement Program ........................................ CIP-125 C66502452 Sewer Pump Station Upgrade- Fairgrounds ........................................... CIP-126 C66502042 C Street Pump Station and Collection System Upgrades ....................... CIP-127 C66501003 Manhole Rehabilitation ......................................................................... CIP-128 E66502451 ECWRF Oxidation Pond Dredge ............................................................. CIP-129 New Oakmead, Redwood, and Outlet Mall Lift Station Upgrades ................. CIP-130 New ECWRF Evaporative Cooler Replacement .............................................. CIP-131 New ECWRF Loading Evaluation and Treatment Capacity Improvements .... CIP-132 New ECWRF Parking Lot Construction ........................................................... CIP-133
Water Utility Projects ......................................................................................................... CIP-135 C67502224 SCADA Upgrades .................................................................................... CIP-136 E67502242 Advanced Metering Infrastructure (AMI) .............................................. CIP-137
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CIP TABLE OF CONTENTS
E67502243 Aquifer Storage & Recovery (ASR) Plan ................................................. CIP-138 C67502329 Potable Water Fill Stations & Security Improvements ........................... CIP-139 C67402122 La Cresta Tank Project ........................................................................... CIP-143 C67502328 Hardin Tank Recoating ........................................................................... CIP-145 C67402433 Oak Hill Tank Replacement .................................................................... CIP-147 New Washington Tank Recoating .................................................................. CIP-149 New Water Tank Paving ................................................................................. CIP-150 New Water Booster Pump Station Upgrades ................................................. CIP-151 C67502330 Water Services Replacement – St Francis and various locations ........... CIP-152 C67502536 Water Service Replacement- Rainier Avenue ........................................ CIP-153 C67502327 Water Services Replacement - Daniel Drive .......................................... CIP-154 Program Water Service Replacement Program .................................................... CIP-155 C67502326 Water Main Replacement Howard St and Various Locations ................ CIP-156 C67502332 Water Main Replacement- D Street ...................................................... CIP-157 C67502012 Water Main Replacement- Bodega and North Webster ........................ CIP-158 New Water Main Replacement- Washington at Highway 101 ...................... CIP-159 Program Water Main Rehabilitation and Replacement Program ......................... CIP-160 Program Well Construction Program ................................................................... CIP-161 New Well Treatment ...................................................................................... CIP-162 New P ressure Reducing Valve Resiliency Program ........................................ CIP-163 New City-Owned Facilities Backflow Preventer Upgrades ............................. CIP-164
CIP-x
CAPITAL IMPROVEMENT BUDGET
Fully Funded Projects
Fully Funded Project
Name
Project
No
CIP
Category
FY
25/26
CIP
Page
Total
Project
Cost
($ in 000)
Total Project
Cost Funded
($ in 000)
Major Funding Sources
All Airport Projects Various Airport 5 $7,438 $7,438 Airport User Fees, State and FAA Grants
Fire Station 1 – Seismic
Retrofit, Safety, and
Privacy Upgrades
C11202433 Facilities 17 $7,103 $7,103 City Facilities Impact Fees, Measure H
Fire Station 2 - Kitchen
Replacement and
Renovations
C11202434 Facilities 18 $741 $741 City Facilities Impact Fees Petaluma Public Safety
Facility C11202431 Facilities 20 $69,830 $69,830
City Facilities Impact Fees,
Future Bond, Grants,
Measure H, Land Sale,
Developer
Contributions/Donations,
Traffic Impact Fees
Temporary Fire Station C11502435 Facilities 21 $1,906 $1,906 City Facilities Impact Fees Fire Reserve Apparatus
Storage and Paving C11501911 Facilities 23 $936 $936 City Facilities Impact Fees Library Facility
Enhancement and
Expansion
various Facilities 25 $2,562 $2,562
City Facilities Impact Fees,
Measure U, TOT, ARPA,
Library Grant
Keller Street Garage -
Improvements C11502536 Facilities 26 $475 $475
Interfund Loan, Petaluma
Tourism Improvement
District
City Facilities HVAC
Replacements C11202223 Facilities 27 $1,404 $1,404 City Facilities Impact Fees, Measure U, ARPA
Petaluma Community
Baseball Field- Phase 1 C14501607 Parks 36 $7,499 $7,499 City Facilities Impact Fees Lynch Creek Trail/
Crosstown Connector C14502114 Parks 41 $3,098 $3,098
Donations/Developer
Contributions, Go Sonoma
Transportation Sales Tax,
TFCA, SCTA TDA, Traffic
Impact Fees
Petaluma River Dredging
Program E14402237 parks 44 $2,175 $2,175 Measure U, TOT Lucchesi Turf Field
Replacement C14502008 Parks 45 $2,746 $2,746
Measure M- Parks,
Measure U, General Fund
Reserves- Turf
Replacement
Prince Park Concession
and Restroom Facility -
Remodel/Repair
C14202319 Parks 48 $177 $177 Measure M Parks
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CAPITAL IMPROVEMENT BUDGET
Fully Funded Project
Name
Project
No
CIP
Category
FY
25/26
CIP
Page
Total
Project
Cost
($ in 000)
Total Project
Cost Funded
($ in 000)
Major Funding Sources
Petaluma North SMART
Station Access
Improvements
C16102433 Public
Works 53 $3,924 $3,924
Traffic Mitigation Impact
Fees, Affordable Housing &
Sustainability Communities
Downtown Pedestrian
ADA Improvements C16501602 Public
Works 54 $1,723 $1,723
Street Maintenance (HUT),
TOT, Waste Water Capital,
Certified Access Specialist
Crosswalk and Signal
Improvements New Public
Works 57 $1,788 $1,788 Traffic Mitigation Impact
Fees, PW Grant
Pedestrian Improvements
Citywide C16102032 Public
Works 59 $1,431 $1,431
Traffic Mitigation Impact
Fees, Street Revenues,
Measure M Parks
Corona Road
Bicycle/Pedestrian
Crosstown Connector
New Public
Works 60 $448 $448 Traffic Mitigation Impact
Fees, Street Revenues
Public Works Facilities Site
Analysis E16402353 Public
Works 68 $527 $527 Water and Waste Water
Capital
Pavement Restoration -
Howard Street C16102435 Public
Works 72 $2,259 $2,259 Infrastructure Bond, Traffic
Mitigation Impact Fees
Pavement Restoration -
Rainier Avenue c16102434 Public
Works 73 $2,634 $2,634
Infrastructure Bond, Traffic
Mitigation Impact Fees,
Street Revenues
Pavement Restoration -
Caulfield Lane New Public
Works 75 $4,229 $4,229 Traffic Mitigation Impact
Fees, Street Revenues
Pavement Restoration - St.
Francis Drive C16102537 Public
Works 76 $3,286 $3,286
Traffic Mitigation Impact
Fees, Infrastructure Bond,
Future Bond Issue
FY25/26 Pavement
Preventative Maintenance New Public
Works 77 $715 $715 Infrastructure Bond
FY26/27 Pavement
Restoration &
Maintenance
New Public
Works 78 $10,725 $10,725 Traffic Mitigation Impact
Fees, Future Bond Issue
FY27/28 Pavement
Restoration &
Maintenance
New Public
Works 79 $9,043 $9,043 Traffic Mitigation Impact
Fees, Future Bond Issue
FY28/29 Pavement
Restoration &
Maintenance
New Public
Works 80 $9,676 $9,676 Traffic Mitigation Impact
Fees, Future Bond Issue
FY28/29 Pavement
Restoration &
Maintenance
New Public
Works 81 $8,300 $8,300 Traffic Mitigation Impact
Fees, Future Bond Issue
All Recycled water
projects Various Recycled
Water 83 $57,242 $57,242
Grants, Water and
Wastewater Utility
Revenues
Corona Creek Flood
Reduction and Habitat
Enhancement
C16502431 Surface
Water 102 $703 $703 Storm Drain Impact Fees,
EPA Grant
CIP-xii
CAPITAL IMPROVEMENT BUDGET
Fully Funded Project
Name
Project
No
CIP
Category
FY
25/26
CIP
Page
Total
Project
Cost
($ in 000)
Total Project
Cost Funded
($ in 000)
Major Funding Sources
All Transit Projects Various Transit 105 $4,905 $4,905 State, Federal, Grants All Wastewater Projects Various Wastewater 111 $153,499 $153,499 Wastewater Utility
Revenues, Grant, Future
Bond
All Water Projects Various Water 135 $75,585 $75,585 Water Utility Revenues, Grant, Future Bond
Partially Funded/Unfunded Citywide Capital Infrastructure Needs
The City’s infrastructure requires significant investments in capital to maintain these assets in good working condition as well as replace or rehabilitate assets at the end of their useful lives. Without sufficient and timely capital investments, the assets will deteriorate, costing the City substantially more in maintenance costs, and infrastructure will ultimately fail. The outcome of this scenario is a need for a greater amount of capital investment. For the next 5 years from FY 26 – FY30, the minimum unfunded (or undetermined) needs in facilities, parks, public works and streets exceeds $139m. It is anticipated that infrastructure costs will continue to increase through typical wear and tear in the coming years, plus the pressures of long-deferred maintenance. As needed, improvements continue to be deferred, operating and maintenance costs rise, and rehabilitation and replacement costs increase substantially.
Despite support from a variety of City funds including millions in grant funding, City facilities and infrastructure needs continue to exceed available funds. The Capital Improvement Plan serves as one tool in measuring the resources necessary to meet our most critical needs. Maintaining an updated CIP that includes both funded and unfunded projects meets reporting requirements in some cases and assists with obtaining grant funding in others. The City’s unfunded capital needs change from year-to- year and are updated throughout the fiscal year and annually with the budget process. As funding is identified, funding sources will be updated. Below is a list of projects that are currently either only partially funded or entirely unfunded:
Project Name
Project
No
CIP
Category
FY
25/26
CIP
Page
Total
Project
Cost
($ in 000)
Total Project
Cost Funded
($ in 000)
Total Project Cost
Unfunded ($ in 000)
Fire Stations 3 Restroom
Separation & Station
renovations
C11202328 Facilities 19 $2,622 $174 $2,448
Fire Prevention Bureau
Interior Improvements New Facilities 22 $285 $0 $285
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CAPITAL IMPROVEMENT BUDGET
Project Name
Project
No
CIP
Category
FY
25/26
CIP
Page
Total
Project
Cost
($ in 000)
Total Project
Cost Funded
($ in 000)
Total Project Cost
Unfunded ($ in 000)
Petaluma Museum
Seismic Retrofit C11201501 Facilities 24 $4,064 $106 $3,958 Emergency Power
Backup City Hall and
Police Headquarters
C11202018 Facilities 28 $614 $574 $40
Electric Vehicle Chargers
- City Facilities C11502015 Facilities 29 $6,272 $1,334 $4,938 City Facilities Energy
Efficiency Projects New Facilities 30 $5,998 $155 $5,843 City Facilities Fire Alarm
System New Facilities 31 $836 $0 $836
Community Center
Interior Repairs New Facilities 32 $2,395 $0 $2,395
City Hall West Wing
Improvements New Facilities 33 $719 $0 $719
Petaluma Community
Baseball Field (Phase 2) New Parks 37 $3,759 $0 $3,759 Parks Master Plan New Parks 38 $500 $0 $500
Kenilworth Park
Revitalization C14502317 Parks 42 $9,245 $300 $8,945
Marina Dredging E14502024 Parks 43 $9,898 $1,228 $8,670 Lucchesi Skatepark C14402215 Parks 46 $4,850 $3,748 $1,102 Swim Center Facility
Assessment and
Remodel Phase (Phase
2)
New Parks 47 $2,443 $62 $2,381
1st and C Street Fishing
Dock and Community
Space
New Parks 49 $540 $50 $490
Senior Services Parking
Lot Reconstruction and
Striping
New Parks 50 $222 $0 $222
Downtown Public
Restroom &
Beautification
C16502430 Public
Works 55 $792 $295 $497
Safe Streets Quick
Builds C16102536 Public
Works 56 $5,106 $3,245 $1,861
SMART Pathway
Extension: Lakeville
Street to N Water Street
New Public
Works 58 $812 $266 $546
Caulfield Bridge
Crosstown Connector C16401824 Public
Works 61 $98,473 $37,845 $60,628
Pedestrian Bridge
Renovations C16402252 Public
Works 62 $6,677 $2,294 $4,383
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CAPITAL IMPROVEMENT BUDGET
Project Name
Project
No
CIP
Category
FY
25/26
CIP
Page
Total
Project
Cost
($ in 000)
Total Project
Cost Funded
($ in 000)
Total Project Cost
Unfunded ($ in 000)
Petaluma River Trail –
US-101 and Rail
Undercrossings
C16101519 Public
Works 63 $7,094 $4,458 $2,636
Electric Utility
Undergrounding New Public
Works 64 $2,342 $2,171 $171
Citywide Bridge Repair C16401925 Public
Works 67 $3,555 $390 $3,165
Trestle Rehabilitation C16502022 Public
Works 69 $13,640 $984 $12,656
Pavement Restoration -
D Street C16102251 Public
Works 74 $2,080 $280 $1,800
Storm Drain Trash
Capture Device Pilot C16501931 Surface
Water 100 $1,473 $921 $552
Wilson Stormwater
Pump Station & Outfall
Upgrades
C16502254 Surface
Water 101 $5,636 $3,880 $1,756
Old Corona Road Wate
Quality Mitigation
C16301518 Surface
Water
103 $2,503 $1,633 $870
Grand
Total
4 $205,445 $66,393 $139,052
More details regarding each of the projects above can be found on the CIP page noted. Additionally, more information is available within each CIP category of the Capital Improvement Plan.
CAPITAL IMPROVEMENT PROJECTS
Airport
CIP
Facilities
CIP
Parks
CIP
Public
Works
Surface
Water
Transit
CIP Water CIP
Recycled
Water
Waste
Water CIP
Budget
FY 25-26
USES (dollars in $000)/FUND 6190 3110 3140 3160 3160 6590 6790 6690 6690 TOTAL Design/ Planning/ Environmental/ Land 85 2,377 185 3,601 715 65 193 319 1,427 8,967 Administration / Legal 85 21 17 25 22 - 12 1 21 204 Construction Contracts 2,275 9,895 3,678 8,451 1,318 50 3,949 1,659 18,063 49,338 Construction Management 172 285 461 305 132 - 78 210 1,805 3,448 Contingency 100 2,794 955 857 294 - 542 445 4,023 10,010 CIP Overheads 70 114 52 91 19 - 25 31 142 544 GRAND TOTAL USES 2,787$ 15,486$ 5,348$ 13,330$ 2,500$ 115$ 4,799$ 2,664$ 25,481$ 72,511$ SOURCES (dollars in $000)
Airport Capital 532 532
Infrastructure Bond- Measure U Sales Tax 3,388 3,388 City Facilities Impact Fee 5,904 5,904
Federal Aviation Administration (FAA) Grant 2,027 2,027 Future Bond 8,465 8,465
General Fund -Measure U 150 150
Go Sonoma Transportation Sales Tax 1,620 1,234 2,854 Grants 758 2,706 46 648 2,297 6,455 Measure H Fire Protection, Paramedic & Disaster 2,605 2,605 Measure M Parks 542 542
Parkland Impact Fees 365 365
Petaluma Tourism Improvement District 295 295 State Grant 188 188
Storm Drainage Impact Fees 410 2,062 2,472 Street Maintenance / Highway Users Tax 962 962 TDA Transit Capital 9 9
Traffic Mitigation Impact Fees 305 348 3,505 12 4,170 Transient Occupancy Tax 400 400
Transit and Intercity Rail Program 78 78
Waste Water Capital 12 1,317 25,214 26,543 Water Capital 4,163 4,163
TOTAL SOURCES 2,747$ $ 18,037 $ 3 ,835 $ 12,090 2,108 $ 99$ $ 4,823 $ 3 ,614 25,214 $ $ 7 2,567 Prior-year funds & timing of reimbursements 40 (2,551) 1,513 1,240 392 16 (24) (950) 268 (56) GRAND TOTAL SOURCES 2,787$ $ 15,486 $ 5,348 $ 13,330 2,500 $ 115$ $ 4,799 $ 2,664 25,482 $ $ 7 2,511 FY 2025-26 Capital Improvement Plan Budget
USES AND SOURCES
(dollars in $000)
CIP-1
CAPITAL IMPROVEMENT PROJECTS
$000
Airport CIP C61502117 Safety Zone Improvements by Drainage Channel 70 C61502009 Taxiway A Rehabilitation 1,401$
C61502319 South Taxilane B Rehabilitation 1,301
C61502420 Airport Fuel Facility Improvements 15
2,787$
Facilities CIP C11202433 Fire Station 1 - Seismic Retrofit and Improvements 2,962$ C11202434 Fire Station 2 - Kitchen Replacement and Renovations 352 C11202431 Petaluma Public Safety Facility 8,770
C11502435 Temporary Fire Station 950
C11501911 Fire Reserve Apparatus Storage and Paving 545 C11201501 Petaluma Museum Seismic Retrofit 156
Various Library Facility Enhancement and Expansion 651
C11502536 Keller Street Garage -Improvements 363
C11202223 City Facilities HVAC Replacements 537
C11202018 Emergency Power Backup City Hall and Police Headquarters 50 C11502015 Electric Vehicle Chargers - City Facilities 150 15,486$
Parks CIP C14501607 Petaluma Community Baseball Field- Phase 1 410$ C14502114 Lynch Creek Trail/ Crosstown Connector 1,968
E14402237 Petaluma River Dredging Program 800
C14502008 Lucchesi Turf Field Replacement 467
C14402215 Lucchesi Skate Park 1,654
New Swim Center Facility Assessment and Remodel Phase (Phase 2) 49 5,348$
Public Works CIP C16102433 Petaluma North SMART Station Access Improvements 1,500$ C16501602 Downtown Pedestrian ADA Improvements 201
C16502430 Downtown Public Restroom & Beautification 186 C16102536 Safe Streets Quick Builds 1,470
C16102032 Pedestrian Improvements Citywide 544
C16401824 Caulfield Bridge Crosstown Connector 2,734
C16402252 Pedestrian Bridge Renovations 428
C16502022 Trestle Rehabilitation 75
C16102435 Pavement Restoration - Howard Street 1,838
c16102434 Pavement Restoration - Rainier Avenue 2,190
C16102251 Pavement Restoration - D Street 40
New Pavement Restoration - Caulfield Lane 1,409
New FY25/26 Pavement Preventative Maintenance 715
13,330$
Recycled Water CIP C66401416 Tertiary Filtration System Expansion 265$ C66501936 Agricultural Recycled Water System Expansion – Adobe Road (Phase One) 1,229$ New Agricultural Recycled Water System Expansion - Adobe Road (Phase Two) 205$ New Urban Recycled Water Expansion - Rainier Extension 300$ New Urban Recycled Water System Expansion - St. Francis Drive 665 2,664$
FY 2025-26 Capital Improvement Plan Budget by Project
CIP-2
CAPITAL IMPROVEMENT PROJECTS
$000
Surface Water CIP C16501931 Storm Drain Trash Capture Device Pilot 126 C16502254 Wilson Stormwater Pump Station & Outfall Upgrades 1,896 C16502431 Corona Creek Flood Reduction and Habitat Enhancement 86 C16301518 Old Corona Road Water Quality Mitigation 392
2,500$
Transit CIP C65502211 Bus Stop Improvements 90
C65202110 Transit Admin Building Roof Overlay 25
115$
Waste Water CIP C66501518 CNG Fueling Station at Ellis Creek 264 C66401728 Ellis Creek High Strength Waste Facilities 307 C66501838 Ellis Creek Outfall Replacement 294
C66502032 PIPS Forcemain Replacement 14,259
C66501930 PIPS Upgrade and Pump Replacement 507
C66402453 ECWRF Digeste (#2) Repair 2,940
C66501840 ECWRF Chemical System Upgrade 2,284
C66402349 ECWRF Oxidation Pond Flow Structure Rehab 2,815 C66402348 Sewer Main Replacement - Howard Street and Various Locations 1,555 C66402350 Sewer Main Replacement - D Street 83
c66402556 Sewer Main Replacement - St Francis and Various Locations 18 New ECWRF Parking Lot Construction 155
25,481$
Water CIP E67502242 Advanced Metering Infrastructure (AMI) 375$ E67502243 Aquifer Storage & Recovery (ASR) Plan 373
C67502329 Potable Water Fill Stations and Security Improvements 180 C67402122 La Cresta Tank Replacement 88
C67502328 Hardin Tank Recoating 161
C67502326 Water Main Replacement Howard Street and Various Locations 3,025 C67502330 Water Services Replacement St Francis and Various Locations 18 C67502332 Water Main Replacement- D Street 83
New Water Service Replacement - Rainier Avenue 496
4,799$
TOTAL CIP BUDGET 72,511$
FY 2025-26 Capital Improvement Plan Budget by Project
CIP-3
CAPITAL IMPROVEMENT PROJECTS
Projected Capital Improvement Plan Project Budgets through FY 2029-30 Budget
Airport CIP
Facilities
CIP
Parks
CIP
Public
Works
Surface
Water
Transit
CIP Water CIP
Recycled
Water
Waste
Water CIP
thru
FY 28-29
USES (dollars in $000)/FUND All CIP Funds 6190 3110 3140 3160 3160 6590 6790 6690 6690 TOTAL Design/ Planning/ Environmental/ Land 23,966 315 4,452 2,064 10,682 765 136 2,710 3,254 4,002 52,346 Administration / Legal 474 199 134 62 270 43 31 220 92 83 1,608 Construction Contracts 61,395 5,508 86,924 25,243 143,836 6,817 2,262 49,511 23,887 96,528 501,911 Construction Management 3,021 457 1,515 1,628 12,116 606 131 3,914 2,351 7,412 33,151 Contingency 3,350 287 8,745 4,177 25,433 1,169 329 8,108 4,567 16,051 72,216 CIP Overheads 1,197 182 745 185 903 69 84 471 418 692 4,946 GRAND TOTAL USES 93,403$ 6,948$ 102,515$ 33,359$ 193,240$ 9,469$ 2,973$ 64,934$ 34,568$ 124,768$ 666,177$ SOURCES (dollars in $000)
Airport Capital 341 1,985 2,326 American Rescue Plan Act (ARPA) 1,682 1,682 Infrastructure Bond- Measure U Sales Tax 580 3,970 4,550 Future Bond - 55,000 38,441 35,983 65,690 195,114 Certified Access Specialist CASP 95 95 City Facilities Impact Fee 2,493 9,341 11,834 Community Development Block Grant (CDBG) 739 739 Developer Contributions/Donations 4,485 50 4,535 Federal Aviation Administration (FAA) Grant 192 4,651 4,843 Federal Transit Administration (FTA) Grant 65 117 182 General Fund 2,238 2,238
General Fund Reserves- Turf Replacement 1,296 1,296 General Fund -Measure U 4,197 645 150 4,992 Go Sonoma Transportation Sales Tax - 1,620 4,364 5,984 Grants 18,912 758 6,739 760 648 8,675 36,492 Interfund Loan 375 155 530 Land Sale - 5,000 5,000
Measure H 157 5,605 5,762
Measure M Parks 1,420 632 2,052 Park Land Development Impact Fees 6,411 365 6,776 Petaluma Tourism Improvement District 100 295 395 PG&E Rebates/ On-Bill Financing / Credits - 2,271 600 2,871 State Grant - 269 269 Storm Drainage Impact Fees 583 4,239 4,822 Storm Drainage Utility - 410 410 Street Maintenance / Highway Users Tax 553 2,999 3,552 TDA Transit Capital 741 1,627 2,368 Traffic Mitigation Impact Fees 2,276 2,927 787 44,423 191 50,604 Transient Occupancy Tax 2,335 1,550 3,885 Transit and Intercity Rail Capital Program 1,076 424 1,500 Waste Water Capital 41,843 240 12 13,631 58,531 114,257 Water Capital 3,474 271 28,314 13,111 45,170 Undetermined - 21,462 26,069 88,343 3,178 139,052 Future Infrastructure Bond Funds -
TOTAL SOURCES $ 98,559 $ 6,905 $ 100,993 $ 31,633 $ 1 92,356 $ 8 ,177 $ 2 ,959 $ 64,957 $ 35,417 $ 124,221 $ 666,177 Prior-year funds & timing of reimbursements (5,156) 43 1,522 1,726 884 1,292 14 (23) (849) 547 0 Other Agency Contribution/Grant -
GRAND TOTAL SOURCES $ 93,403 $ 6,948 $ 102,515 $ 33,359 $ 193,240 $ 9,469 $ 2,973 $ 64,934 $ 34,568 $ 1 24,768 $ 666,177 All CIP
Divisions
Through FY
25 FY 2025-26 through FY 2029-30
USES AND SOURCES
(dollars in $000)
CIP-4
AIRPORT CAPITAL IMPROVEMENT PROJECTS
AIRPORT PROJECTS
FY 2025-2026
AIRPORT CAPITAL IMPROVEMENT PROGRAM BUDGET FY 25-26
PROJECT SUMMARY
Fund 6190.61999
PROJECTS (dollars in $000) FY 26-27 FY 27-28 FY 28-29 FY 29-30 C61502117 Safety Zone Improvements
by Drainage Channel CIP-7 10$ 5$ 15$ 70$ 269$ -$ -$ -$ 354$ 100% C61502009 Taxiway A Rehabilitation CIP-8 108 131 239 1,401 1,661 - - - 3,301 100% C61502319 South Taxilane B
Rehabilitation CIP-9 105 131 236 1,301 703 - - - 2,240 100% New Runway 11-29 Seal Coat CIP-10 - - - - 50 417 - - 467 100% New North Hangar Ramp Seal
Coat CIP-11 - - - - 125 416 - - 541 100% C61502420 Airport Fuel Facility
Improvements CIP-12 - - - 15 235 - - - 250 100% C61502218 Airport Emergency Power
Backup CIP-13 - - - - 25 260 - - 285 100% TOTAL 223$ 267$ 490$ 2,787 $ 3,068 $ 1,093 $ - $ - $ 7,438 $ SOURCES (dollars in $000)
Airport Capital 32$ 309$ 341$ 532$ 755$ 698$ - $ - $ 2,326 $ State AIP Grant - - - 188 62 19 - - 269 FAA Grant 171 21 192 2,027 2,249 375 - - 4,843 TOTAL 203$ 330$ 533$ 2,747 $ 3,066 $ 1,092 $ - $ - $ 7,438 $ Page
No.
% of
Project
Funded
(5 Years)
Total
Project
Estimate
Estimate
FY 24-25
Estimate
Life to
Date thru
FY 25
Actual
Life to
Date thru
FY 24
Projected Budgets
Budget
FY25-26
CIP-5
AIRPORT CAPITAL IMPROVEMENT PROJECTS
Map of Airport Capital Improvement Projects Seeking FAA Funding
CIP-6
AIRPORT CAPITAL IMPROVEMENT PROJECTS
Safety Zone Improvements by Drainage Channel C61502117
Project Costs and Funding Sources
(Dollars in $000’s)
C61502117
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 10 5 15 70 85 Administration / Legal - 2 2
Construction Contracts - 200 200
Construction Mgmt - 20 20
Contingency - 40 40
CIP Overheads - 7 7
TOTAL USES 10$ $ 5 15$ 70$ 269$ $ - $ - $ - 354$ SOURCES (dollars in $000)
Airport Capital 11 5 16 71 267 354 TOTAL FUNDS 11$ $ 5 16$ 71$ 267$ $ - $ - $ - 354$ Projected Budgets
Description and Justification
The deteriorating drainage channel in the airport’s
sideline safety zone , crossing the runway , requires
updates to meet Federal Aviation Administration
(FAA) safety standards. This project will address
significant erosion problems, repair slopes, and
resolve persistent drainage issues that worsen
during w et weather events. By completing these
improvements, this project will enhance aviation
safety while ensuring the airport’s infrastructure
aligns with FAA requirements, reflecting Petaluma’s
commitment to maintaining a safe and compliant
aviation facility.
Funded percentage of total project cost: 100%
Start Date: FY 2022/23 – Spring/Summer 2023
Completion Date: FY 2026/27 – Spring/Summer 2027
Project Manager: Steve Worrell
Department Rep: Dan Cohen
☐Climate First ☐Shovel Ready
Operating Impact:
☐ No significant impact
☐ Provide savings
☒ Maintenance costs included in operating budget
☐ Other: _______________
CIP-7
AIRPORT CAPITAL IMPROVEMENT PROJECTS
Taxiway A Rehabilitation C61502009
Project Costs and Funding Sources
(Dollars in $000’s)
C61502009
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 107 131 238 238 Administration / Legal - 50 60 110 Construction Contracts - 1,194 1,417 2,611 Construction Mgmt - 72 89 161 Contingency - 45 55 100 CIP Overheads 1 1 40 40 81 TOTAL USES 108$ 131$ 239$ $$ 11 ,,460611 $$ $ - -- $ 3 ,301 SOURCES (dollars in $000)
Airport Capital 10 158 168 346 514 State AIP Grant - 128 128
FAA Grant 91 9 100 898 1,661 2,659 TOTAL FUNDS 101$ 167$ 268$ $$ 11 ,,367621 $$ $ - -- $ 3 ,301 Projected Budgets
Description and Justification
In 2017, the City’s Airport Pavement Management System
Report rated the pavement condition of Inner Taxiway A as a medium to high severity, highlighting the need for repairs.
To address the aging pavement and maintain
infrastructure integrity, the rehabilitation project for Taxiway A will include dig-outs, edge repairs, crack
sealing, and an asphalt overlay. This project incorporates sustainable practices, such as recycling onsite pavement materials, where possible . The design for this project is scheduled for completion in FY 2024/25, with construction slated to begin in FY 2025/26. This project will be funded primarily by grants from the Federal Aviation
Administration (FAA) and the Caltrans Division of
Aeronautics, with some local matching funds from airport operating funds.
Funded percentage of total project cost: 100%
Start Date: FY 2023/24 – Fall 2023
Estimated Completion: FY 2026/27 – Spring 2027
Project Manager: Steve Worrell
Department Rep: Dan Cohen
☐Climate First ☐Shovel Ready
Operating Impact:
☐ No significant impact
☐ Provide savings
☒ Maintenance costs included in operating budget
☐ Other: ___________________
CIP-8
AIRPORT CAPITAL IMPROVEMENT PROJECTS
South Taxilane B Rehabilitation C61502319
Project Costs and Funding Sources
(Dollars in $000’s)
C61502319
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 104 131 235 235 Administration / Legal - 35 30 65 Construction Contracts - 1,081 523 1,604 Construction Mgmt - 100 75 175 Contingency - 55 45 100 CIP Overheads 1 1 30 30 61 TOTAL USES 105$ 131$ 236$ $ 1,301 703$ $$ $ - - -$ 2 ,240 SOURCES (dollars in $000)
Airport Capital 10 146 156 100 100 356 State AIP Grant - 60 60 120 FAA Grant 80 12 92 1,129 543 1,764 TOTAL FUNDS 90$ 158$ 248$ $ 1,289 703$ $$ $ - - -$ 2 ,240 Projected Budgets
Description and Justification
Originally constructed in 1994, Taxilane B plays a crucial role as a thoroughfare for tenant aircraft moving between the runway and the south hangars at the Petaluma
Airport. Due to its age, Taxilane B needs pavement
sealing as well as reconstruction to maintain its
operational integrity . This project will adopt an
environmentally responsible approach by recycling
existing asphalt materials directly on -site whenever
possible. Ensuring the continued functionality of this
critical aviation thoroughfare is the primary goal of this project. This project will be primarily funded by federal and state grants and project work will be coordinated
with the Taxiway A Rehabilitation project (C61502009).
Funded percentage of total project cost: 100%
Start Date: FY 2023/24 – Fall 2023
Estimated Completion: FY 2026/27 – Spring 2027
Project Manager: Steve Worrell
Department Rep: Dan Cohen
☐Climate First ☐Shovel Ready
Operating Impact:
☐ No significant impact
☐ Provide savings
☒ Maintenance costs included in operating budget
☐ Other: ___________________
CIP-9
AIRPORT CAPITAL IMPROVEMENT PROJECTS
Runway 11-29 Seal Coat New
Project Costs and Funding Sources
(Dollars in $000’s)
Runway 11-29 Seal Coat
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land - 45 45 Administration / Legal - -
Construction Contracts - 397 397
Construction Mgmt - 5 10 15 Contingency - 10 10
CIP Overheads - -
TOTAL USES $$ - - -$ $ - 50$ 417$ $$ - - 467$ SOURCES (dollars in $000)
Airport Capital - 3 23 26
State AIP Grant - 2 19 21
FAA Grant - 45 375 420
TOTAL FUNDS $$ - - -$ $ - 50$ 417$ $$ - - 467$ Projected Budgets
Description and Justification
The Petaluma airport runway requires pavement resealing approximately every 10 years as part of its regular maintenance.
This project includes resealing the runway surface and
repainting critical runway markings. Resealing is vital to protect the runway surface from wear and tear caused by aircraft landings and takeoffs, as well as exposure to the elements. By maintaining a well -sealed and properly marked runway,
Petaluma ensures a smooth and secure surface for air craft operations, reducing the risk of dama ge to aircraft, increasing safety, and maximizing overall runway performance. This project is particularly important for Petaluma's aviation infrastructure, as it not only adheres to safety standards but also contributes to the overall efficiency and reliability of the city's air travel facilities. This project is funded, in large part, by grants from the Federal Aviation Administration (FAA) and Caltrans Division of Aeronautics , in conjunction with matching funds provided by airport operating funds.
Funded percentage of total project cost: 100%
Start Date: FY 2026/27 – Fall 2026
Completion Date: FY 2027/28 – Spring 2028
Project Manager: To Be Determined
Department Rep: Dan Cohen
☐Climate First ☐Shovel Ready
Operating Impact:
☐ No significant impact
☐ Provide savings
☒ Maintenance costs included in operating budget
☐ Other: ___________________
CIP-10
AIRPORT CAPITAL IMPROVEMENT PROJECTS
North Hangar Ramp Seal Coat New
Project Costs and Funding Sources
(Dollars in $000’s)
North Hangar Ramp Seal Coat
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land - 50 50 Administration / Legal - 10 10 20 Construction Contracts - 50 336 386 Construction Mgmt - 5 60 65 Contingency - -
CIP Overheads - 10 10 20 TOTAL USES $ - $ - $ - $ - 125$ 416$ $ - $ - 541$ SOURCES (dollars in $000)
Airport Capital - 125 416 541
TOTAL FUNDS $ - $ - $ - $ - 125$ 416$ $ - $ - 541$ Projected Budgets
Description and Justification
This project will sealcoat the taxilanes leading to hangar rows 10 through 18, which are crucial paths of travel for aircraft to access their respective hangars . These taxilanes play a vital role in the functionality of the Petaluma airport and require regular preventative maintenance to ensure safe and functional operations. Sealcoating these taxilanes not only extends the lifespan of the pavement, but also preserves the infrastructure, significantly reducing the risk of aircraft damage from Foreign Object Debris (FOD). Staff are actively exploring additional funding opportunities to support this project.
Funded percentage of total project cost: 100%
Start Date: FY 2026/27 – Fall 2026
Completion Date: FY 2027/28 – Spring 2028
Project Manager: To Be Determined
Department Rep: Dan Cohen
☐Climate First ☐Shovel Ready
Operating Impact:
☒ No significant impact
☐ Provide savings
☐ Maintenance costs included in operating budget
☐ Other: ___________________
CIP-11
AIRPORT CAPITAL IMPROVEMENT PROJECTS
Airport Fuel Facility Improvements C61502420
Project Costs and Funding Sources
(Dollars in $000’s)
C61502420
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land - 15 85 100 Administration / Legal - 2 2
Construction Contracts - 110 110
Construction Mgmt - 11 11
Contingency - 22 22
CIP Overheads - 5 5
TOTAL USES $$ - - -$ 15$ 235$ $$ $ - - - 250$ SOURCES (dollars in $000)
Airport Capital - 15 235 250 TOTAL FUNDS $$ - - -$ 15$ 235$ $$ $ - - - 250$ Projected Budgets
Description and Justification
Constructed in 2007, the Petaluma airport fuel facility requires upgrades to ensure continued reliable and safe service for airport tenants . Planned improvements include resealing and protecting the existing tanks , upgrading a supply line, and replacing a turbine pump, float, and overflow protection valve.
Additionally, s taff are actively researching Sustainable Aviation Fuels (SAF). Once SAFs are certified for use by the Federal Aviation Administration (FAA) and a local source is secured, SAFs will replace the fuels currently being offered.
All proposed and completed upgrades in this project will be compatible with SAF.
Funded percentage of total project cost: 100%
Start Date: FY 2025/26 – Summer 2025
Estimated Completion: FY 2026/27 – Spring 2027
Project Manager: Dan Cohen
Department Rep: Dan Cohen
☐Climate First ☐Shovel Ready
Operating Impact:
☐ No significant impact
☒ Provide savings
☐ Maintenance costs included in operating budget
☐ Other: ___________________
CIP-12
AIRPORT CAPITAL IMPROVEMENT PROJECTS
Airport Emergency Power Backup C61502218
Project Costs and Funding Sources
(Dollars in $000’s)
C61502218
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land - 25 25 50 Administration / Legal - -
Construction Contracts - 200 200
Construction Mgmt - 10 10
Contingency - 15 15
CIP Overheads - 10 10
TOTAL USES $ - $ - $ - $ - 25$ 260$ $ - $ - 285$ SOURCES (dollars in $000)
Airport Capital 1 1 25 259 285 TOTAL FUNDS $ 1 $ - $ 1 $ - 25$ 259$ $ - $ - 285$ Projected Budgets
Description and Justification
The Petaluma Municipal Airport is a n important
component of the City’s disaster response plan,
serving as a potential primary staging area . The
airport’s role in emergency preparedness is
underscored by its reliance on a seasonally leased
fossil fuel generator for backup power, crucial for
supporting airfield lighting, weather systems , and
other needed functions during disasters. Recognizing
the importance of sustainability, this project will
explore environmentally friendly power backup
technology, including renewable energy sources, in
tandem with power source reliability and capacity
needs.
Funded percentage of total project cost: 100%
Start Date: FY 2026/27 – Summer 2025
Estimated Completion: FY 2027/28 – Summer 2028
Project Manager: To Be Determined
Department Rep: Dan Cohen
☐Climate First ☐Shovel Ready
Operating Impact:
☐ No significant impact
☐ Provide savings
☒ Maintenance costs included in operating budget
☐ Other: ___________________
CIP-13
AIRPORT CAPITAL IMPROVEMENT PROJECTS
CIP-14
FACILITIES CAPITAL IMPROVEMENT PROJECTS
FACILITIES PROJECTS
FY 2025-2026
FACILITIES CAPITAL IMPROVEMENT PROGRAM BUDGET FY 25-26
PROJECT SUMMARY
Fund 3110.31100
PROJECTS (dollars in $000) FY 26-27 FY 27-28 FY 28-29 FY 29-30 C11202433
Fire Station 1 - Seismic,
Safety, and Privacy
Upgrades
CIP-17 66 435 501 2,962 3,640 - - - 7,103 100% C11202434
Fire Station 2 - Kitchen
Replacement and
Renovations
CIP-18 6 86 92 352 297 - - - 741 100%
C11202328
Fire Stations 3 Restroom
Separation & Station
renovations
CIP-19 220 3 223 - 112 2,287 - - 2,622 7% C11202431 Petaluma Public Safety
Facility CIP-20 70 587 657 8,770 35,695 24,708 - - 69,830 100% C11502435 Temporary Fire Station CIP-21 7 949 956 950 - - - - 1,906 100% New Fire Prevention Bureau
Interior Improvements CIP-22 - - - - - 285 - - 285 0% C11501911 Fire Reserve Apparatus
Storage and Paving CIP-23 74 312 386 545 5 - - - 936 100% C11201501 Petaluma Museum Seismic
Retrofit CIP-24 53 - 53 156 3,855 - - - 4,064 3% Various Library Facility Enhancement
and Expansion CIP-25 101 1,810 1,911 651 - - - - 2,562 100% C11502536 Keller Street Garage -
Improvements CIP-26 - 12 12 363 100 - - - 475 100% C11202223 City Facilities HVAC
Replacements CIP-27 428 439 867 537 - - - - 1,404 100% C11202018
Emergency Power Backup
City Hall and Police
Headquarters
CIP-28 6 26 32 50 532 - - - 614 93%
C11502015 Electric Vehicle Chargers -
City Facilities CIP-29 350 207 557 150 5,242 181 142 - 6,272 21% New City Facilities Energy
Efficiency Projects CIP-30 - - - - 356 5,642 - - 5,998 3% New City Facilities Fire Alarm
System CIP-31 - - - - 250 586 - - 836 0%
New Community Center Interior
Repairs CIP-32 - - - - 200 2,195 - - 2,395 0% New City Hall West Wing
Improvements CIP-33 - - - - 719 - - - 719 0%
TOTAL $ 1,381$ 4,866$ 6,247$ 15,486$ 51,003$ 35,884 142$ $ -$ 108,762 % of
Project
Funded
(5 Years)
Total
Project
Estimate
Actual
Life to
Date thru
FY 24
Estimate
Life to
Date thru
FY 25
Projected Budgets
Budget
FY25-26
Estimate
FY 24-25
Page
No.
CIP-15
FACILITIES CAPITAL IMPROVEMENT PROJECTS
FACILITIES CAPITAL IMPROVEMENT PROGRAM BUDGET FY 25-26
PROJECT SUMMARY
Fund 3110.31100
SOURCES (dollars in $000) FY 26-27 FY 27-28 FY 28-29 FY 29-30 City Facilities Impact Fees 541$ 1,952$ 2,493$ 5,904$ 955$ 2,465$ 17$ -$ 11,834$ General Fund 267 - 267 - - - - - 267 General Fund- Measure U 1,246 100 1,346 - 260 260 125 - 1,991 Future Bond Issue - - - 8,465 35,738 10,797 - - 55,000 Transient Occupancy Tax 118 - 118 - - - - - 118 Petaluma Tourism Improvement District - - - - 100 - - - 100 American Rescue Plan Act (ARPA) 1,369 - 1,369 - - - - - 1,369 Grants 189 - 189 758 - - - - 947 Community Development Block Grant 739 - 739 - - - - - 739 - 157 157 2,605 3,000 - - - 5,762 Interfund Loan - 375 375 - 155 - - - 530 Water Capital 76 - 76 - - - - - 76 Waste Water Capital 59 - 59 - - - - - 59 Land Sale - - - - 5,000 - - 5,000 Developer Contributions/ Donations 522 - 522 - - - - - 522 Steet Maintenance 59 - 59 - - - - - 59 Traffic Impact Fees - - - 305 2,622 - - - 2,927 Undetermined - - - - 10,728 10,734 - - 21,462 TOTAL 5,185 $ 2,584 $ 7,769 $ 18,037 $ 53,558 $ 29,256 $ 142$ - $ 108,762 $ Measure H Fire Protection, Paramedic
Services & Disaster Response
Actual
Life to
Date thru
FY 24
Estimate
FY 24-25
Estimate
Life to
Date thru
FY 25
Budget
FY25-26
Projected Budgets
Total
Project
Estimate
CIP-16
FACILITIES CAPITAL IMPROVEMENT PROJECTS
Fire Station 1 – Seismic, Safety, and Privacy Upgrades C11202433
Project Costs and Funding Sources
(Dollars in $000’s)
C11202433
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 64 430 494 100 - 594 Administration / Legal 1 2 3 2 - 5 Construction Contracts - 2,200 3,500 5,700 Construction Mgmt - 100 120 220 Contingency - 550 - 550 CIP Overheads 1 3 4 10 20 34 TOTAL USES 66$ 435$ 501$ $ 2,962 $ 3 ,640 $ - $ - $ - $ 7,103 SOURCES (dollars in $000)
City Facilities Impact Fee 70 435 505 357 636 1,498 Measure H Fire Protection, Paramedic Services & Disaster Response - 2,605 3,000 5,605 TOTAL FUNDS 70$ 435$ 505$ $ 2,962 $ 3 ,636 $ - $ - $ - $ 7,103 Projected Budgets
Description and Justification
Fire Station 1, built in 1938, requires updates to maintain its role in Petaluma’s emergency response net work. The Public Safety Facility Assessment and Center for Public Safety Management both highlight the need for a station on the westside of the Petaluma River to provide adequate response times. Planned r enovations include seismic
upgrades, facility remodel, safety notification system
replacement, and strengthening of the apparatus bay
doors.
The facility remodel will provide accommodations for a more diverse workforce by constructing single -user
shower facilities and separated dormitories. Additional upgrades will bring the station into compliance with current building and fire safety codes while modernizing the living and eating quarters. This will become an all-electric city facility, equipped to support future demands for electric emergency response vehicles.
This project is supported in part by Measure H, the
"Improved and Enhanced Local Fire Protection,
Paramedic Services, and Disaster Response Initiative"
approved in March 2024.
Funded percentage of total project cost: 100%
Start Date: FY 2023/24
Estimated Completion: FY 2026/27
Project Manager: Paul Geoghegan
Department Rep: Jeff Schach
☒Climate First ☒Shovel Ready
Operating Impact:
☐ No significant impact
☐ Provide savings
☒ Maintenance costs included in operating budget
☐ Other: _____________
CIP-17
FACILITIES CAPITAL IMPROVEMENT PROJECTS
Fire Station 2 – Kitchen Replacement & Station Renovations C11202434
Project Costs and Funding Sources
(Dollars in $000’s)
C11202434
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 6 44 50 35 15 - 100 Administration / Legal 2 2 2 2 - 6 Construction Contracts 12 12 250 250 - 512 Construction Mgmt 15 15 20 15 - 50 Contingency 10 10 40 10 - 60 CIP Overheads 3 3 5 5 - 13 TOTAL USES $ 6 86$ 92$ 352$ 297$ $ - $ - $ - 741$ SOURCES (dollars in $000)
City Facilities Impact Fee 6 86 92 352 297 741 TOTAL FUNDS $ 6 86$ 92$ 352$ 297$ $ - $ - $ - 741$ Projected Budgets
Description and Justification
Fire Station 2 , built in 1982, has been identified in the City's public safety facilities strategic master plan as nearing the end of its useful life as a fire station. With funding not yet identified for a full rebuild of this station , which is unlikely in the foreseeable future , there are several deferred maintenance projects that, if completed, will extend the useful life and functionality of the fire station.
This station’s bathrooms have been updated to provide
single-user facilities and to meet American with Disabilities Act ( ADA) standards . However, additional key deferred maintenance projects include replacing the kitchen,
installing new windows, replacing apparatus bay doors,
and improving station security and privacy.
Funded percentage of total project cost: 100%
Start Date: FY 2023/24
Estimated Completion: FY 2026/27
Project Manager: Paul Geoghegan
Department Rep: Jeff Schach
☐Climate First ☐Shovel Ready
Operating Impact:
☒ No significant impact
☐ Provide savings
☐ Maintenance costs included in operating budget
☐ Other: _____________
CIP-18
FACILITIES CAPITAL IMPROVEMENT PROJECTS
Fire Station 3 – Restroom Separation & Station Renovations C11202328
Project Costs and Funding Sources
(Dollars in $000’s)
C11202328
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to
Date thru
FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 91 3 94 100 15 209 Administration / Legal - 2 2 4 Construction Contracts 122 122 - 2,000 2,122 Construction Mgmt 4 4 - 50 54 Contingency - - 200 200
CIP Overheads 3 3 10 20 33 TOTAL USES 220$ $ 3 223$ $ - 112$ $ 2,287 $ - $ - $ 2 ,622 SOURCES (dollars in $000)
City Facilities Impact Fee 174 174 174
Undetermined A - - 422 2,026 - 2,448 TOTAL FUNDS 174$ $ - 174$ $ - 422$ $ 2,026 $ - $ - $ 2 ,622 Projected Budgets
Description and Justification
Fire Station 3, built in 1971, is showing signs of aging and nearing the end of its useful life, as highlighted in the City's public safety facilities strategic master plan . While a full rebuild is not anticipated for the foreseeable future,
essential upgrades are needed to extend its use for
another decade or more.
This project will address key deferred maintenance,
including replacing electrical and heating, ventilation, and air conditioning (HVAC) systems, and replacing apparatus bay doors. This project also includes restroom and
dormitory improvements to accommodate a more diverse
workforce and improve li ving quarters and privacy. The kitchen remodel was completed in FY 2023/24.
Funded percentage of total project cost: 7%
Start Date: FY 2022/23
Estimated Completion: TBD, Pending Funding
Project Manager: To Be Determined
Department Rep: Jeff Schach
☐Climate First ☐Shovel Ready
Operating Impact:
☒ No significant impact
☐ Provide savings
☐ Maintenance costs included in operating budget
☐ Other: _____________
CIP-19
FACILITIES CAPITAL IMPROVEMENT PROJECTS
Petaluma Public Safety Facility C11202431
Project Costs and Funding Sources
(Dollars in $000’s)
C11202431
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 70 586 656 1,680 3,900 2,090 8,326 Administration / Legal 1 1 10 75 70 156 Construction Contracts - 5,000 28,100 22,348 55,448 Construction Mgmt - 1,040 1,130 150 2,320 Contingency - 1,000 2,150 - 3,150 CIP Overheads - 40 340 50 430 TOTAL USES 70$ 587$ 657$ 8,770$ 35,695$ 24,708$ -$ -$ 69,830$ SOURCES (dollars in $000)
City Facilities Impact Fee - 3,161 - 2,448 5,609 Future Bond Issue 8,465 35,738 10,797 55,000 EOC Grant - 637 637
Measure H Fire Protection, Paramedic Services &
Disaster Response 157 157 - - 157 Land Sale 5,000 5,000
Developer Contributions/ Donations 500 500 500 Traffic Impact Fees 305 2,622 2,927
TOTAL FUNDS 500$ 157$ 657$ $ 12,568 $ 38,360 $ 18,245 $ - $ - $ 69,830 Projected Budgets
Description and Justification
The City conducted a Public Safety Facilities Assessment to evaluate the needs of the Fire and Police Departments. The assessment identified the need for a new, centrally located Fire Headquarters, Police Station, and Emergency
Operations Center (EOC) to suppo rt public safety
operations. This project aims to develop a new facility that will enhance emergency response capabilities and help
accommodate future public safety needs as the community grows.
This project includes the design and construction of the new public safety facility as well as necessary infrastructure improvements to support emergency vehicle access, traffic circulation, and active transportation infrastructure in the surrounding Fairgrounds area. These upgrades will enhance connectivity, prioritize safety for all users, and provide the essential infrastructure needed to supp ort the operational requirements of the new Public Safety Facility.
Improvements will be delivered through a phas ed approach under multiple contracts, ensuring a flexible and strategic implementation.
Funded percentage of total project cost: 100%
Start Date: FY 2023/24
Estimated Completion: FY 2027/28
Project Manager: Paul Geoghegan
Department Rep: Jeff Schach, Brian Miller
Operating Impact:
☐ No significant impact
☐ Provide savings
☒ Maintenance costs included in operating budget
☒ Other: ______________
☐Climate First ☐Shovel Ready
CIP-20
FACILITIES CAPITAL IMPROVEMENT PROJECTS
Temporary Fire Station C11502435
Project Costs and Funding Sources
(Dollars in $000’s)
C11502435
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 6 19 25 35 60 Administration / Legal 10 10 10
Construction Contracts 850 850 850 1,700 Construction Mgmt 20 20 15 35 Contingency 40 40 40 80 CIP Overheads 1 10 11 10 21 TOTAL USES $ 7 949$ 956$ 950$ $ - $ -$ - $ - $ 1 ,906 SOURCES (dollars in $000)
City Facilities Impact Fee 7 949 956 950 1,906 TOTAL FUNDS $ 7 949$ 956$ 950$ $ - $ -$ - $ - $ 1 ,906 Projected Budgets
Description and Justification
To ensure uninterrupted fire services during essential
renovations at each of Petaluma’s three fire stations, the City will establish a temporary fire station at 307 Petaluma Boulevard South. This project includes preparing the site to accommodate a donate d portable building, with utility
connections (water, sewer, electricity, and gas), an asphalt driveway, parking area, fencing, and a temporary
apparatus bay. Frontage improvements will enhance the
facility's appearance, functionality, and accessibility, ensuring the temporary station is fully operational and seamlessly integrated into the surrounding area. This
solution will allow the Fire Department to maintain critical services throughout the construction period.
Funded percentage of total project cost: 100%
Start Date: FY 2023/24
Estimated Completion: FY 2025/26
Project Manager: Paul Geoghegan
Department Rep: Jeff Schach
Operating Impact:
☐ No significant impact
☐ Provide savings
☐ Maintenance costs included in operating budget
☐ Other: ___________________
☐Climate First ☐ Shovel Ready
CIP-21
FACILITIES CAPITAL IMPROVEMENT PROJECTS
Fire Prevention Bureau Interior Improvements New
Project Costs and Funding Sources
(Dollars in $000’s)
Fire Prevention Bureau Interior Improvements
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land - 25 25 Administration / Legal - 5 5
Construction Contracts - 200 200
Construction Mgmt - 10 10
Contingency - 40 40
CIP Overheads - 5 5
TOTAL USES -$ -$ -$ -$ -$ 285$ -$ -$ 285$ SOURCES (dollars in $000)
Undetermined A - 285 285
TOTAL FUNDS $ - $ - $ - $ - $ - 285$ $ - $ - 285$ Projected Budgets
Description and Justification
Fire inspectors, much like firefighters post -incident, face exposure to hazardous materials during their duties.
Additionally, research indicates that their protective gear can release contaminates and needs to be quarantined and cleaned after inspections. However, the Fire Prevention Bureau, located at 22 Bassett Street adjacent to City Hill, is in a 1950s -era building originally used as a police station and lacks the necessary facilities for staff to safely handle and manage their equipment. To address th is, this project will install an equipment decontamination station, ensuring the well-being of the Fire Prevention Bureau personnel, as well as reinstating the shower facilities, bolstering safety measures, and aligning with the Americans with Disabilities Act (ADA) standards. As part of these improvements, there will also be minor office adjustments to maximize the
efficiency of the existing space.
Funded percentage of total project cost: 0%
Start Date: TBD, Pending Funding
Estimated Completion: TBD, Pending Funding
Project Manager: To Be Determined
Department Rep: Jeff Schach
Operating Impact:
☒ No significant impact
☐ Provide savings
☐ Maintenance costs included in operating budget
☐ Other
☐Climate First ☐ Shovel Ready
A Undetermined sources could utilize sources such as future grants, federal/state/local programs, or donations. As funding becomes available and is sufficient to cover project cost, funding Sources will be updated and identified.
CIP-22
FACILITIES CAPITAL IMPROVEMENT PROJECTS
Fire Reserve Apparatus Storage & Paving C11501911
Project Costs and Funding Sources
(Dollars in $000’s)
C11501911
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to
Date thru
FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 9 20 29 45 5 79 Administration / Legal 1 1 1 2 Construction Contracts 64 256 320 420 - 740 Construction Mgmt - 30 - 30 Contingency 30 30 42 - 72 CIP Overheads 1 5 6 7 - 13 TOTAL USES 74 312 386 545 5 - - - 936 SOURCES (dollars in $000)
City Facilities Impact Fee 75 316 391 545 936 TOTAL FUNDS 75 316 391 545 - - - - 936 Projected Budgets
Description and Justification
This project will provide much -needed external storage for Fire Department equipment at Stations 2 and 3. As the
department purchases new apparatus, it retains older
apparatus to use when other units need repair. This backup fleet requires protective stora ge to ensure it remains in good condition and ready for use when needed. To address this, the project will install lightweight structures in outdoor spaces at both fire stations.
In addition to the storage improvements, this project will include critical repaving work at Fire Station 2. The current paving in the combined parking and training area is over 30 years old and has deteriorated to a very poor condition. The degraded surfa ce limits the firefighters' ability to conduct essential training operations effectively and safely. At Fire Station 3, the project will revise the parking layout and repave the parking area behind the station. This
improvement will provide a smoother, more durable surface for vehicle parking and maneuvering, enhancing the overall functionality of the facility.
Funded percentage of total project cost: 100%
Start Date: FY 2018/19
Estimated Completion: FY 2025/26
☐Climate First ☐Shovel Ready
Project Manager: Paul Geoghegan
Department Rep: Jeff Schach
Operating Impact:
☒ No significant impact
☐ Provide savings
☐ Maintenance costs included in operating budget
☐ Other: ___________________
CIP-23
FACILITIES CAPITAL IMPROVEMENT PROJECTS
Petaluma Museum Seismic Retrofit C11201501
Project Costs and Funding Sources
(Dollars in $000’s)
C11201501
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 52 52 155 5 212 Administration / Legal - 10 10
Construction Contracts - 3,000 3,000 Construction Mgmt - 300 300
Contingency - 450 450
CIP Overheads 1 1 1 90 92 TOTAL USES 53$ -$ 53$ 156$ 3,855$ -$ -$ -$ 4,064$ SOURCES (dollars in $000)
Transient Occupancy Tax 106 106 106
Undetermined A - 3,958 3,958
TOTAL FUNDS 106$ - $ 106$ - $ 3,958 $ - $ - $ - $ 4,064 $ Projected Budgets
Description and Justification
The Petaluma Museum is housed in the historic 1906
Carnegie Library building. To ensure its longevity and safety, it needs repairs and upgrades to help it withstand an
earthquake. Upon finalizing the preliminary design, a more precise project cost can be d etermined, paving the way for potential funding avenues. Currently, funding for the
construction phase is undetermined, but staff are exploring various grant opportunities to support this effort.
Funded percentage of total project cost: 3%
Start Date: FY 2014/15 – Spring 2015
Estimated Completion: TBD, Pending Funding
A Undetermined sources could utilize sources such as future grants, federal/state/local programs, or donations. As funding becomes available and is sufficient to cover project cost, funding Sources will be updated and identified.
Project Manager: Diane Ramirez
Department Rep: Drew Halter
☐Climate First ☐ Shovel Ready
Operating Impact:
☒ No significant impact
☐ Provide savings
☐ Maintenance costs included in operating budget
☐ Other: ___________________
CIP-24
FACILITIES CAPITAL IMPROVEMENT PROJECTS
Library Facility Enhancement and Expansion C11202121, C11502224, C11202429, C11202430
Project Costs and Funding Sources
(Dollars in $000’s)
C11202121, C11502224, C11202429, c11202430
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 45 110 155 - - - - - 155 Administration / Legal - 1 1 2 - - - - 3 Construction Contracts 50 1,350 1,400 545 - - - - 1,945 Construction Mgmt 2 75 77 35 - - - - 112 Contingency - 240 240 57 - - - - 297 CIP Overheads 4 34 38 12 - - - - 50 Sonoma County Contribution - - - - - - - - TOTAL USES 101$ $ 1,810 $ 1,911 651$ $ - $ - $ - $ - $ 2 ,562 SOURCES (dollars in $000)
City Facilities Impact Fee 175 171 346 101 - - - - 447 General Fund- Measure U 757 - 757 - - - - - 757 Transient Occupancy Tax 12 - 12 - - - - - 12 American Rescue Plan Act (ARPA) 418 - 418 - - - - - 418 Library Infrastructure Grant 928 - 928 - - - - - 928 TOTAL FUNDS $ 2 ,290 171$ $ 2,461 101$ $ - $ - $ - $ - $ 2 ,562 Projected Budgets
Description and Justification
This is a collaborative project between the City of Petaluma and Sonoma County Library to improve and enhance the
Petaluma Regional Library. Major elements of the project include expanding public areas, upgrading the fire
suppression system, replacing the HVAC, and replacing the roof. Access improvements will also be included , such as adjustments to the slope of the front entry walkway,
replacing the accessible parking stall surface, and adding ramps to the remaining building doors.
The City's upgrades are in alignment with the County's
interior renovation goals, where both the City and County are aiming for a more functional and welcoming space. The City has been awarded the California State Library’s
Building Forward Library Facilities Improvement Grant to support both City and County project elements.
Funded percentage of total project cost: 100%
Start Date: FY 2020/21
Estimated Completion: FY 2025/26
☐Climate First ☒Shovel Ready
Project Manager: Diane Ramirez
Department Rep: Drew Halter
Operating Impact:
☒ No significant impact
☐ Provide savings
☐ Maintenance costs included in operating budget
☐ Other: ___________________
CIP-25
FACILITIES CAPITAL IMPROVEMENT PROJECTS
Keller Street Garage Improvements C11502536
Project Costs and Funding Sources
(Dollars in $000’s)
C11502536
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 1 1 55 56 Administration / Legal - 3 3 Construction Contracts 11 11 250 100 361 Construction Mgmt - 15 15
Contingency - 25 25
CIP Overheads - 15 15
TOTAL USES $ - 12$ 12$ 363$ 100$ $ - $ -$ - 475$ SOURCES (dollars in $000)
Petaluma Tourism Improvement District 100 100
Interfund Loan 375 375 375
TOTAL FUNDS $ - 375$ 375$ $ - 100$ $ - $ -$ - 475$ Projected Budgets
Description and Justification
The Keller Street Parking Garage plays a n important role in providing parking for downtown visitors, businesses, and residents. However, its interior lighting system is outdated and has suffered from environmental wear and
vandalism, impacting both safety and visibility. To address these concerns and improve overall functionality, this
project will replace all existing lighting with energy-efficient LED bulbs and dimmable fixtures, enhancing illumination while reducing long-term energy and maintenance costs.
In addition to lighting upgrades, staff will conduct a n assessment to identify further improvements related to
parking management, safety, accessibility, and overall
infrastructure needs. This assessment will help determine strategic investments to modernize the facility and
enhance the user experience.
This project will be funded with an existing interfund loan.
Funded percentage of total project cost: 100%
Start Date: FY 2024/25
Estimated Completion: FY 2026/27
Project Manager: Diane Ramirez
Department Rep: Drew Halter
☒Climate First ☐Shovel Ready
Operating Impact:
☒ No significant impact
☐ Provide savings
☐ Maintenance costs included in operating budget
☐ Other
CIP-26
FACILITIES CAPITAL IMPROVEMENT PROJECTS
City Facilities HVAC Replacements C11202223
Project Costs and Funding Sources
(Dollars in $000’s)
C11202223
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 165 428 593 72 665 Administration / Legal 1 1 2 1 3 Construction Contracts 257 257 380 637 Construction Mgmt - 30 30
Contingency - 40 40
CIP Overheads 5 10 15 14 29 TOTAL USES 428$ 439$ 867$ 537$ $ - $ -$ - $ - $ 1 ,404 SOURCES (dollars in $000)
City Facilities Impact Fee - 438 438 General Fund- Measure U 15 15 15
American Rescue Plan Act (ARPA) 951 951 951 TOTAL FUNDS 966$ $ - 966$ 438$ $ - $ -$ - $ - $ 1 ,404 Projected Budgets
Description and Justification
This project will address critical repairs and replacements of heating, ventilation, and air conditioning (HVAC) units at various city facilities to ensure reliable operation and maintain safe air exchange and filtration for staff and the public. These upgrades are essential to maintaining
healthy indoor environments and supporting the long-term functionality of public facilities. The project is primarily funded by the American Rescue Plan Act (ARPA) of 2021
and City Facilities Impact Fees.
Funded percentage of total project cost: 100%
Start Date: FY 2021/22
Estimated Completion: FY 2025/26
☐Climate First ☐Shovel Ready
Project Manager: Diane Ramirez
Department Rep: Drew Halter
Operating Impact:
☐ No significant impact
☐ Provide savings
☒ Maintenance costs included in operating budget
☐ Other: ___________________
CIP-27
FACILITIES CAPITAL IMPROVEMENT PROJECTS
Emergency Power Backup at City Hall & Police Headquarters C11202018
Project Costs and Funding Sources
(Dollars in $000’s)
C11202018
USES (dollars in $000)
Actual Life
to Date
thru FY 24
Estimate
FY 24-25
Estimate
Life to Date
thru FY 25
Budget
FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Total
Project
Estimate
Design/ Planning/ Environmental/ Land 5 25 30 50 80 Administration / Legal 1 1 2 3 Construction Contracts - 450 450
Construction Mgmt - 20 20
Contingency - 50 50
CIP Overheads 1 1 10 11 TOTAL USES 6$ 26$ 32$ 50$ 532$ -$ -$ -$ 614$ SOURCES (dollars in $000)
General Fund 250 250 250
General Fund- Measure U 224 100 324 324 Undetermined A - - 40 40 TOTAL FUNDS 474$ 100$ 574$ $ - 40$ $ - $ - $ - 614$ Projected Budgets
A Undetermined sources could utilize sources such as future grants, federal/state/local programs, or donations. As funding becomes available and is sufficient to cover project cost, funding Sources will be updated and identified.
Description and Justification
The Petaluma Police Department currently serves as
the Petaluma Emergency Operations Center (EOC) and
has a generator to ensure uninterrupted operations. The existing generator is past its useful service life and
needs to be replaced. In addition , City Hall does not
have an emergency power backup system for general
operations. In the event of a PG&E Public Safety Power
Shutdown (PSPS) or other emergency power outage
event, city services will be disrupted without functioning generators. This energy resiliency project, informed by the City Facilities Emergency Power Backu p Feasibility Study (E11502346), will both design and install
environmentally friendly power backup systems for
Police Headquarters and City Hall as well as provide
facility connections, including proper disposal of existing equipment.