FY 25-26 Budget:
Issues and Challenges
City of Sebastopol
City Manager Don Schwartz
March 4, 2025
Starting Point: Long-term Projections
Projected FY 25-26 Deficit: $296,000
Projected future deficits: $2 million
Measure U
“To maintain Sebastopol’s City
services”
Does not provide funding for new
initiatives or services
Unless you reduce something else
Measure U
Council Policy (non-binding):
1. 40%: maintain/repair streets, drainage, and parks (40% = $375K)
2. Sufficient funding for public safety, including retaining Police staffing and sufficiently funding fire
3. Remainder: Other City services
New Positions?
Staffing Study Identified Significant
Needs
Most likely will need to replace
existing to add new
Facilities & Infrastructure:
Balancing the Existing with Anything New
Examples:
Trails prioritized in ATP
Pickleball courts
We have many facilities and much
infrastructure with great needs
Economic Development
Can mean many things
Includes potential EIFD and Hotels
Potential framework:
Foundation of good planning practices and culture
Three overlapping components:
Business
Attraction
Visitor
Attraction
Business
Retention
Efficiency Opportunities
Technology: we are behind
Service models: leverage economies of scale
Fleet replacement?
Cross-training & more generic positions
As recommended in staffing study
Move Building Dept. to City Hall
Consider Using Reserve Funds
Buildings, Facilities, and Infrastructure
FY 24-25 Year-end Balance: $1,040,000
Could complement Measure U
Equipment, Technology, and Vehicles
FY 24-25 Year-end Balance: $792,000
Additional Revenues:
Recommendations from September
1.Expand Economic Development: Yes
2.Pursue EIFD: Yes
3.Review User Fees: In Spring
4.Initiate Development Impact Fees: Not yet
5.Update Building Valuation Fees: Done
6.Consider Trench Cut Ordinance: Not yet
Next Steps
Staff Developing Recommendations
Budget Committee to Review
Goal-setting: April 1
Follow up to goal-setting: April 15
Completion of Rec. Budget: May
Budget Hearings: June