General Fund Budget Reductions
Summary & Future Reduction
Methodologies
LONG TERM FINANCIAL POLICY AUDIT
SUBCOMMITTEE
AUGUST 14, 2025
ALAN ALTON CHIEF FINANCIAL OFFICER
SCOTT WAGNER DEPUTY DIRECTOR - FINANCE
Summary
Significant General Fund reductions were accomplished through mid-year and adoption actions totaling $15.2M
The General Fund’s structural deficit remains unsustainable in the short-term and will require additional reductions over multiple periods
Goal: Create sustainable balanced budget for the General Fund Achieved over multiple periods
Utilizes reserves in transparent and responsible manner Does not project reserve balance below Council minimum on a 2-year basis (next two budget cycles) 2 Summary
The City will need strategies going forward which address Equity amongst departments (What does this look like?) Cut amount target / Minimum reduction amounts required (Sustainable Reserves VS Deficit) When does the cutting end? (Getting on a schedule)
Room for positive changes (Economic Development/ Department Efficiencies / Revenue Improvement) Not too much too soon (Defendable position)
Timing (lengthening the budget process)
3 Current Long Range Financial Forecast
4 Revenues
Transfers In
Total Revenues & TI
Expenditures
Transfers Out
Total Expenditures & TO
Surplus (Deficit)
269.3
($8.4) ($17.4) ($23.1) ($30.2) (33.7)
$226.0 $239.6 $250.1 $260.8
260.2
9.2 9.3 9.5 9.0 9.2
216.8 230.3 240.7 251.8
2.5 $217.6 $222.2 $227.0 $230.6 235.6
2.5 2.5 2.5 2.5
FY 29-30
$215.1 $219.7 $224.5 $228.1 233.1
FY 25-26 FY 26-27 FY 27-28 FY 28-29
Current Total Reserves Usage Projection
5 FY2025 FY2026 FY2027 FY2028 FY2029
6/30/2024 Reserves 68,826,590$
FY 24/25 Actuals Over Deficit (1,700,000)$
FY 25/26 Budget Deficit (8,400,000)$
Childcare pilot program 1,400,000$
One Time PG&E Funding 9,200,000$
6/30/2025 Projected Reserves 69,326,590$
FY 26/27 Budget Deficit (17,400,000)$
6/30/2026 Projected Reserves 51,926,590$
FY 27/28 Budget Deficit (23,100,000)$
6/30/2027 Projected Reserves 28,826,590$
FY 28/29 Budget Deficit (30,200,000)$
6/30/2028 Projected Reserves (1,373,410)$
FY 29/30 Budget Deficit (33,700,000)$
6/30/2029 Projected Reserves (35,073,410)$
* Council Mandated Reserve was $34.9M in FY2024, expected to be $40.6M in 2027 Upcoming Budget Adoptions
Timing Of Information
We will not have significant updates to LRFF until position budgeting is completed in January We should have a preliminary 6/30/2025 reserve calculation by October 1 Numbers will change
6 Department 8% Target 24-25 Mid Year
Cuts
25-26 Adopted
Cuts Below Target Above Target
City Manager 253,062 359,900 485,000 591,838 City Attorney 367,459 2,500 305,550 (59,409) Human Resources 371,420 202,435 317,000 148,015 Finance 640,292 10,000 1,744,902 1,114,610 Fire Department 4,469,286 900,000 1,227,000 (2,342,286) Planning & Econ Development 1,400,261 457,590 1,052,600 109,929 Recreation & Parks 1,369,611 250,731 916,000 (202,880) Transportation & Public Works 2,060,252 1,191,605 703,000 (165,647) Housing & Community Services 392,022 8,000 1,571,000 1,186,978 Police Department 6,222,331 160,502 2,844,500 (3,217,329) Santa Rosa Water 59,617 40,000 17,000 (2,617) Comms & Intergovt. Relations 145,580 211,368 233,000 298,788 Total 17,751,194 3,794,631 11,416,552 (5,990,168) 3,450,157 GF Cut Amounts by Department- Mid Year + Adoption
Questions & Feedback
7