Cash-strapped SR could seek shift in Measure O funds

Santa Rosa officials may consider reallocating revenue from a sales tax that funds some public safety expenses in order to preserve other police and fire services.

Citing dire budget projections, city staff members Tuesday suggested the City Council look into using Measure O money to pay for some police positions financed by the general fund and targeted for cuts.

"If we were just talking about little things, we might be able to figure something out," said Michael Frank, assistant city manager. "But the numbers we're looking at mean reducing areas that Measure O is funding."

Santa Rosa voters approved the quarter-cent sales tax measure in 2004, and it provides $7 million annually for police, fire and gang prevention services.

The terms of Measure O specify its revenue cannot be spent on items financed by the city's general fund unless the City Council votes to declare a fiscal crisis.

Frank said next year's budget outlook is so bleak, such a vote will likely be necessary.

"Police and fire make up 64 percent of the general fund resources, so reductions will have to occur in those departments," Frank said. "The question is, will Measure O pick up those positions that we have to cut? No one wants the money to sit there and not be used."

The Police Department has a large amount of Measure O funds saved up, Frank said, while the Fire Department, in the midst of building a new fire station on Lewis Road, does not have significant amounts saved. Measure O funds are split evenly between police and fire.

Frank said if the council were to reallocate some Measure O funds, the money would not be used to pay for costs outside of public safety.

To balance the city's current 2008-09 budget, the council approved last month $5 million in cuts and fee increases. But officials still predict a $8 million deficit for the 2009-10 fiscal year.

Decreases in sales tax revenues and property related fees and taxes are responsible for a $9.4 million gap between Santa Rosa's revenues today and those that were projected three years ago, Frank said.

"Our revenues pretty much fell off a cliff," he said.

The city held a special budget study session Tuesday for those interested in running for the five council seats that will be open in the November election.

A similar presentation was made by City Manager Jeff Kolin at the City Council's regular meeting Tuesday.

Councilmember Lee Pierce said the presentation was "only the beginning" of difficult discussions, including a potential vote to declare a fiscal crisis.

Pierce said while he considered it clear that the city is facing one, any change in the allocation of Measure O funds would not win his vote.

Apart from reallocating Measure O money, staff members gave candidates and council members a laundry list of potential closures and reductions that could help bridge the shortfall.

The options include closing the city's Senior Center, reducing pothole patching, closing some neighborhood parks and cutting back on maintenance, turning off half of all street lights and reducing free recreation programs.

Staff also raised the possibility of eliminating 29 sworn and civilian police employees, closing a fire station, reducing neighborhood traffic patrols and eliminating the community Emergency Preparedness Program.

In addition, the City Council is scheduled Tuesday to consider placing on the November ballot another quarter-cent sales tax measure that would supplement the general fund.

Potential council candidates at the study session said they supported budget solutions other than dipping into Measure O revenue.

"If my house is on fire, I want a firefighter there, not a city planner," said candidate Hans Dippel, who said he was against voting to declare a fiscal crisis for the city.

"I don't like the option," said candidate Bobbi Hoff. "As a city you have to have basic services, safety, recreation and roads. Those are core services."

Six council members would have to vote to reallocate Measure O revenue, according to rules voters approved when they passed the tax.

Candidate Judy Kennedy said she needed more information about the budget and Measure O before making a decision. But if it came to using Measure O money to pay for general fund police positions, "I wouldn't discount it," she said.

Dippel, Hoff, Kennedy, Michael Allen and Gary Wysocky attended the candidates' session and said they were not surprised by the city's financial straits but might try and look for options other than cutting services.

"We need to address where we're getting money from and look at bringing jobs here," Wysocky said.

You can reach Staff Writer Laura Norton at 521-5220

or laura.norton@

pressdemocrat.com.