Sonoma County’s financial outlook bright
The financial outlook for Sonoma County government, clouded just three years ago in the fallout from a historic recession, appears to be brighter than it has been in more than a decade, with tax revenue up more than 6 percent from last year, tourism at an all-time high and an unemployment rate lower than the state and national averages.
With a $1.46 billion budget bolstered by higher revenue from property, sales and hotel bed taxes, plus increases in state and federal funding, Sonoma County supervisors are poised to confront a host of new and long-postponed expenditures, including on roads, education and affordable housing projects.
At the same time, county officials say they’re looking to hold the line on payroll costs, though those expenses have jumped nearly 19 percent in the past four years as the county added more than 400 new positions across more than two dozen departments.
The fiscal rebound marks an opportunity to reassess where and how the county spends taxpayer money, supervisors said.
“This is a breath of fresh air,” said Board of Supervisors Chairwoman Susan Gorin. “Now we are focusing on our desperately needed priorities.”
Gorin this week was preparing remarks she was set to deliver today at the annual State of the County address. She planned to highlight county projects and accomplishments over the past year, including a continued boost in spending on road upkeep, funding a slate of homelessness programs and opening up nearly 1,500 acres of county open space for public access.
Going forward, county officials voiced a hope to steer money toward key programs, instead of simply backfilling positions and budgets slashed during the recession. On that initial list of priorities are proposals to fund universal preschool, build new affordable housing and improve access to health care.
“This is a direction Sonoma County is very consciously taking, by strategically targeting our investments,” Gorin said. “We are not about building up a large county organization.”
Nevertheless, county staffing has rebounded, with 4,187 total employees today — up 33 percent from 2011 after the county had cut its workforce by more than 500 filled and unfilled positions. Total spending on employee salaries and benefits was more than $550 million this year, up from $464 million in 2011.
With the additional tax revenue, this year’s budget grew 7.4 percent over last year’s. The current spending plan is up more than 20 percent from 2011 — the height of the economic downturn for county government.
Property tax revenue, the main source of county discretionary funding, shot up in 2014, with the county’s overall tax assessment roll valued at $71.7 billion — more than a 7 percent annual increase, the largest since the financial collapse. The county’s portion of the property tax revenues came in at $193.2 million in 2014, up 5.3 percent from the previous year, according to county financial reports.
Revenue from hotel bed taxes also has increased. The latest calendar year numbers, from 2013, climbed 13 percent from the previous year’s, for a total of $27 million in annual revenue. The rise continued during the first six months of 2014. Hotel occupancy rates are up more than 6 percent compared to this time last year, an economic indicator of tourism, county officials said.