Santa Rosa focuses on core services with first balanced budget in years

Santa Rosa approved a structurally balanced budget for the first time in at least five years as the city refocuses on funding core public services after dedicating resources to wildfire and pandemic response.

The final 2022-2023 budget, which the City Council unanimously approved Tuesday, is set at $478.8 million.

Santa Rosa residents will see added resources for public safety, code enforcement and community programming downtown.

One high-profile line item that residents will see: The city designated $2.7 million in general fund reserves to establish a fund to repair and replace Fire Department equipment.

Chief Scott Westrope said the department typically approaches the council each year “with our hand out” requesting money to replace ladder trucks, fire engines and other equipment as it reaches the end of its life, an inefficient and costly method.

“We wanted to build a fleet replacement program but there was no initial capital investment to put in there,” he said. “Working with the team and working with council to put that together is a huge, huge accomplishment for us to where we can actually plan how we replace our fleet and put the right tools in the hands of the firefighters that are on the streets on a daily basis.”

Going forward, the city will set aside $1.2 million annually to build up the fund.

The department is also restoring two firefighter positions, which will help fill staffing gaps and reduce mandatory overtime, and the city is already in the process of filling the positions.

Overall, the 2022-2023 budget represents a 0.8% increase over the current year budget that ends June 30, a relatively flat spending plan reflective of increasing expenses despite improving tax and other revenues.

It is the first budget crafted under City Manager Maraskeshia Smith, who joined the city in January.

Smith told council members on Tuesday that creating a balanced budget was tough amid rising payroll expenses and increases in the costs of goods such as gas and utilities.

The spending plan allows the city to focus on core services and quality of life issues, such as infrastructure investments, crime prevention and recreation, and provides staff with the necessary tools to do their job, she said.

“I believe I’m putting something in front of you that allows us to get back to core and basic services,” she said. “While it was a tad bit conservative, I think this was the best budget I could have delivered.”

City staff presented a draft budget to the council during a two-day hearing in May. No major changes were made to the plan under the final budget.

The $190 million general fund, which makes up the largest chunk of the city’s overall budget at 40% and pays for most operational expenses, was boosted by flush tax revenue projections and one-time funding.

Operating revenues came in stronger this fiscal year than projected and staff is anticipating higher revenues in 2022-2023.

However, salary and benefit costs, the largest single expense, are projected to rise to $147 million, up $6 million or 4% from the current year.

In addition to added resources for the Fire Department, the Santa Rosa Police Department will add three officers who will focus on violent crime prevention and reducing firearm violence.

Santa Rosa also will add two code enforcement officers to help with a backlog of cases and enforcement of the city’s short-term rental ordinance.

Smith said though departments requested additional resources for new programs and positions and council members have their own pet projects they would like to see funded, the spending plan represents the limit of what the city can spend.

Staff can come back during the mid-year budget cycle to see if additional money can be allocated to other projects, she said.

Some projects she’d like to see funded include a weed abatement program and road preservation. City transportation officials have warned the road system is at risk of failing if Santa Rosa doesn’t increase its investment in pavement maintenance and preservation.

Mayor Chris Rogers praised Smith and top administrators for their work in putting together the budget and said the city is heading in the right direction.

“We do see the cracks after years of dealing with disasters and this budget does feel like we’re turning a corner in getting back to being more proactive in addressing the needs of the community and not just reactive,” he said.

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