The city of Cotati is facing a budget deficit of $1 million starting 2016, which will balloon to $5 million by 2018, unless a new revenue source is found.
“There’s three things going on,” said City Manager Dianne Thomson. “Measure A is sun-setting in 2015, we’ve lost redevelopment and the economy hasn’t come back as quickly as we anticipated.”
In the past five years, Cotati’s revenues have plummeted, from $7 million in 2007 to just $4.3 million this fiscal year, a trend played out in cities all over California and, to a lesser extent, the country.
Thompson said the city is researching all options, including whether to ask voters to renew Measure A, the half-cent sales tax approved in 2010. A budget workshop to discuss long-term solutions is expected sometime this summer.
Despite the shortfall, Cotati has been aggressive in dealing with declining revenues, Thompson said, including reducing staff by 30 percent over the past five years and cutting salaries. It also implemented a second-tier pension plan for all new employees, the first city in Sonoma County to do so.
Thompson was among the first city employees to take a 15 percent pay cut, which was soon followed by other administrative staff and other bargaining units.
“We are very lean and very efficient and have always looked at how to create more efficiencies,” Thompson said.
Are you a Cotati resident? If so, tell us how you feel. Are you in favor of renewing Measure A for another five years as a way of balancing the budget?
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