Sonoma’s City Budget: $31.3 Million
This past week, Sonoma’s City Council met for three hours to review the proposed budget prepared by city staff. The city’s 2016-17 budget is $31.3 million and it was reported that 70% of all revenue comes from the combination of TOT, sales tax and property tax. Finance director DeAnna Hillbrants said the city is, “benefitting from robust property taxes.” These revenue sources were noted by city manager Carol Giovanatto as volatile and sensitive to economic fluctuations. Giovanatto noted her conservative approach to the budget and cautioned about the next projected “recession wave” in 2017-18.
The last few years, it was reported, have been a bonanza for tourism and 50% of all Sonoma revenues are tied to tourism. Hotel occupancy is currently at 85-90%, yet growth in the tourist sector is expected to be flat this next year, which is to say, revenue will remain at a high level. The city is fiscally stable, Giovanatto said, with a tax base characterized as “stable, solid and adequate.”
The city’s bond rating is A-, mostly because of the cemetery fund deficit of over a million dollars; this affects the city’s interest rates and ability to borrow. The cemetery fund is stable but in a deficit, as finance director Hillbrants said, “we are no longer throwing dirt in that hole.”
Heads of all departments made thorough presentations: fire, police, planning, public works, building, finance, city clerk and city manager. Staff demonstrated high level command of city finances. Public Works director Dan Takasugi lamented, humorously, that the “city was not poor enough to qualify for certain grants.”
In response to a question about fees and waiving fees, finance director Hillbrants said that when fees get waived that money just becomes unavailable for other things. Hillbrants said that Sonoma’s allocating 60% of the budget for public safety, i.e. fire and police, is common.
The city prosecutor and code enforcement are expected to bring in some funds through collections from fines and back penalties, for failure to have a business license, for example.
The gas tax fund, intended to support all street related expenditures, is in the “red” and not self- supporting; transfers from the General Fund cover that shortfall. Mayor Gallian asked about the future of this gas tax fund, in particular if electric vehicles won’t contribute gas taxes for the roads they drive on. For new new automobile tech to pay its own way, it was noted, things will likely have to get worked out the same way AirBnB and Uber have been, over time with new policy.
In the Community Activities budget heading, $90,000 is set aside for Sebastiani Theater costs.
Police Chief Brett Sackett lamented the passing away of the Crown Victoria patrol cars; there is only one left. The new police rigs, he noted, are more expensive SUVs. The police budget is $4.7 million and Fire is $5 million.
Councilmember Agrimonti asked if this budget process would shed any light on the Planning Commission’s request for direction from the council on housing issues? City Manager Giovanatto replied it was her job to make sure housing does not fall off the table. She said the city’s $86,500 housing impact study, now in process, would provide a basis for the council’s direction to the Planning Commission. In any event, it is the city’s intent, both in council Goals and from staff, to chart a sustainable course for housing programs, one that meets the needs for rental and workforce housing.
Members of the public present included Sarah Ford, David Eicher, Cynthia Scarborough and Fred Allebach. There were three public comments, two asking how Climate Action 2020 would be funded. City manager Giovanatto said that council Goals, which have a good showing of Climate Action 2020 statements, can be incorporated into the budget, yet she cautioned, somewhat ominously, “There is no room for movement in this budget,” adding, “ it was “produced very strategically.”
– Sun Staff Report
