So far, so good for city budget

Sonoma seems to be doing well in the first quarter of the new fiscal year – and given the state of the California and U. S. economies, city staffers are doing their best to keep it that way.
“I still don’t have a huge concern over where the budget sits right now,” Assistant City Manager Carol Giovanatto told the City Council Wednesday night. “I’m not forecasting that we need to make changes at this point.”
Giovanatto explained that the first quarter, which runs July 1 to Sept. 30, is traditionally a “dormant time” in terms of taking the city’s financial pulse, largely because property tax and redevelopment funding won’t be received until December. Her report focused on the health of Sonoma’s $10 million General Fund, which pays for most city services.
Giovanatto said revenues are at 14 percent of the expected total, up 2 percent over the same period last year, with expenditures at 15 percent – somewhat higher than last year due to some changes in accounting procedures. So far, spending exceeds revenues by $78,591, but Giovanatto said that’s not unusual.
“It’s a typical position for a first quarter budget – no cause for alarm,” she said, adding that staff is delaying some expenditures until they can get a better idea of how Sonoma’s economy will be affected by the still-fluid situation at the state and national levels.
In terms of revenues, Sonoma’s transient occupancy tax – which comes from hotels, motels, bed-and-breakfasts and vacation rentals – stands at $567,969, up 20 percent over this time last year. Business license fees are down slightly, Giovanatto said, since many in the construction and development industries haven’t yet renewed their licenses until later in the year.
California’s fire season took a toll on the city coffers. The Sonoma Valley Fire and Rescue Authority  sent crews to five major incidents this year, and is currently waiting for more than $300,000 in overtime and equipment paybacks from the state. Revenues for the Emergency Medical Services fund, on the other hand, are at 27 percent of the total budget – an increase from last year due to more calls for service as well as increased activity at Infineon Raceway, which contracts with SVFRA for ambulance assistance.