Santa Rosa finance officials warned the City Council Tuesday that while local sales tax revenue is finally leveling out, it isn’t enough to outpace a “snowball effect” of rising costs.
According to the Press Democrat, the city is projecting a $17.5 million general fund deficit for the upcoming fiscal year, driven largely by a 10% jump in payroll and benefits.
To bridge the gap, administrators are proposing a mix of tapping into reserves, cutting vacant positions, and restructuring pension debt. While current service levels are safe for now, deeper cuts to departments like Police and Fire may be looming by 2027.
Officials are also eyeing a potential ballot measure to increase the local sales tax to shore up the city’s long-term financial health.