Cotati's Budget Operating in the Black Second Year in a Row

Cotati city officials last night touted a bright financial outlook — much different than the grim picture that's being painted throughout Sonoma County, as cities struggle to close budget gaps left by the Great Recession, a declining sales taxes and property values, amongst what some say is government overspending.

Officials last night announced the Cotati will have a $1 million surplus at year's end, and it's expected to adopt a balanced budget for the second year in a row, the Press Democrat is reporting today.

City Manager Dianne Thompson said Cotati, which operates on a $4.2 million budget, will have $80,000 more in revenues than expenditures, and the town of about 7,000 has created 2.5 staff positions — a stark difference than every other town in Sonoma County, the article stated.

Similar to Rohnert Park, Cotati voters also OK'd a half-cent sales tax measure last year, which has helped the town. Cotati also over the last three years reduced spending by 24 percent and cut staff by 33 percent, the article stated. 

"Officials say that with the structural deficit eliminated, projections show that the city's budget will be balanced through the next seven fiscal cycles, even after the sales tax expires in four years," according to the report.

City Manager Gabe Gonzalez said Rohnert Park faces a $2.1 million operating budget deficit for the upcoming year, and a staggering annual structural deficit of , which he attributed to made up of largely retiree medical benefits and a deteriorating infrastructure.

The total unfunded liabilities for retiree medical alone is $53.2 million, and just $2.6 million has been set aside to date, according to Gonzalez. 

However, Gonzalez this week outlined a plan that aims to set aside monies annually in  reserve accounts, and Tuesday the City Council OK'd a plan that would only allow the reserves to be taken out with a 4/5 vote. Gonzalez will present the 2011-2012 budget Tuesday, June 28.

What are your ideas? How can Rohnert Park close the growing budget deficit and keep crucial city services?