Santa Rosa City Council Passes 2024-25 Fiscal Year Budget

On June 18th, 2024, the Santa Rosa City Council held a public hearing to adopt the citywide proposed Fiscal Year (FY) 2024-25 annual budget. The budget was passed by City Council with six affirmative votes. Santa Rosa's total Operating and Capital Budget is $508.8 million across all funds and comprises $458.2 million of operational funding and $50.6 million of capital project funding. As compared to the previous year, the FY 2024-25 budget decreased ($28.2) million or (5.3%) from the FY 2023-24 adopted budget.

This overall decrease mostly occurs in the Capital Improvement Program, with a year-over-year variance of ($24.2) million or (32.4%). Less revenues are anticipated in the coming year, particularly in Capital Facilities Fees, Gas Tax, and Measure M, resulting in less funds available to appropriate. Notable projects in the FY 2024-25 Capital Improvement Program budget include $6.4 million for improvements in parks citywide, $8 million for electrical upgrades at the Laguna Treatment Plant, and $4.6 million for the reconstruction of Calistoga Road. Other resources have been added to projects such as slurry seal and pavement maintenance, and water main and sewer trunk repair, among others.

The Operations & Maintenance Budget is decreasing by ($3.9) million or (0.9%). Most operational programs experienced increases in costs citywide largely due to cost-of-living increases per labor agreements, and rising vehicle and insurance costs. However, the Housing Authority had a one-time grant appropriated in FY 2023-24, which was not repeated in FY 2024-25 and caused the year-over-year to decrease overall.

The General Fund FY 2024-25 adopted budget totals $220.2 million and includes over 77% salaries and benefits. Expenditures in the General Fund have been outpacing the growth of General Fund revenues, resulting in a deficit of $13.3 million. Efforts to increase revenue and reduce expenditures will be taken in the coming year to correct this structural deficit.

Visit the City's budget webpage for more information on the City's FY 2024-25 budget.