Get a first look at Santa Rosa’s proposed $534 million budget. Here’s how

The Santa Rosa City Council will get its first look at the city’s fiscal year 2023-24 budget, which is expected to total $534 million, during a two-day study session this week.

City finance officials will present an overview of the city’s revenues and expenditures as well as a broad look at the city’s fiscal health.

The discussion will be followed by presentations from department heads who will be putting forth their funding requests and will conclude with a look at the city’s proposed capital programs budget.

The hearing is scheduled for noon to 4 p.m. Tuesday and will resume at 9 a.m. Wednesday.

The proposed budget is set at $534 million for the coming fiscal year, which begins July 1, and represents a nearly 11% increase from the current budget.

That’s a considerable jump following a relatively flat budget approved by the council last June that saw a 0.8% increase year over year as city administrators sought to focus on core public services after years of resources dedicated to wildfires, rebuilding and pandemic response.

The general fund, which makes up the largest chunk of the city’s overall budget at about 38%, is projected to grow by about $10 million, or 5.3%, to $200.3 million. The fund, which is primarily made up of sales and other taxes, pays for salaries, benefits and other operational expenses.

Despite last June’s approval of a structurally balanced budget — the first in at least five years — finance officials anticipate a $2.5 million deficit in the coming fiscal year.

While taxes and other revenues saw small increases year over year, rising payroll expenses and increased costs of goods and services have eaten away at that profit. The city will also have to use general fund dollars to prop up the parking fund and other unprofitable enterprise funds, which are meant to be self-sustaining but which added to the deficit.

A five-year forecast shows that gap growing to an estimated $11 million in fiscal year 2027-28, according to the staff report.

Beyond operating budgets, the city proposes spending $74.9 million in capital improvements across departments to address streets, parks and water and sewer infrastructure.

City Council members will have a chance to ask questions and provide direction on the financing plan during the hearings. Public comments will be taken after the staff presentations conclude Wednesday.

The council is expected to adopt a final budget on June 20.

You can reach Staff Writer Paulina Pineda at 707-521-5268 or paulina.pineda@pressdemocrat.com. On Twitter @paulinapineda22.