Finance Director Prapti Aryal will present unaudited results of the City of Sonoma’s finances for fiscal year 2024-25 at the next meeting of the City Council on September 29. The full report can be viewed HERE. A summary of the results for the City’s General Fund is provided below.
The FY 2024-25 General Fund budget, adopted in June 2024, projected revenues of $24.3 million and expenditures of $27.1 million, resulting in a planned deficit of $2.9 million. This shortfall reflected flat revenue projections alongside a 4.6% increase in expenditure. The amended budget later adjusted revenues to $24.9 million and expenditures to $28.2 million.
Unaudited actual results for the fiscal year were more favorable than anticipated. Revenues exceeded the budgeted amount by $2.6 million, reaching $27.5 million, while expenditures came in $1.2 million below budget, totaling $27.0 million. Overall, this resulted in a General Fund surplus of $0.6 million for the year.
Approximately 46% of the General Fund operating budget is dedicated to Police and Fire contracts. Given the ongoing uncertainty surrounding local economic conditions and future revenue streams, the City has limited flexibility to reduce expenditures in these areas. As a result, the City will likely need to continue strategically holding positions vacant and closely managing supplies and services expenditures to maintain budgetary balance.
The City also continues to address the consequences of under-investment in facilities, vehicle replacement, and technology. Deferred maintenance on City facilities has created a backlog of projects necessary to maintain safe conditions and extend the life of public assets. Outdated software systems, including the City’s ERP platform, further limit efficiency and transparency.
However, progress was made in FY 2024-25 with the implementation of OpenGov Budgeting and Planning and the launch of the OpenGov Transparency Portal, which integrates daily financial transactions and makes them readily accessible to stakeholders. These improvements represent an important step forward in modernizing financial operations and enhancing transparency, though additional investments in facilities, fleet replacement, and technology remain critical to long-term sustainability.
Looking ahead, the City will continue to align its financial strategies with its long-range planning goals by monitoring economic trends, updating multi-year forecasts, and evaluating reserve levels to ensure fiscal stability. Strategic use of reserves, thoughtful prioritization of capital projects, and exploration of new revenue opportunities will be essential to balance near-term service delivery needs with the City’s long-term financial health.
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