The Santa Rosa City Council voted unanimously to adopt a $575.9 million budget for the fiscal year that begins July 1, eliminating 27 positions and tapping reserves to close an operating shortfall while it puts off deeper service cuts.
The plan counts on nearly $9.9 million in cost-cutting, including pension reform, eliminating vacant and previously grant-funded positions, consolidating departments and charging new fees, according to the city. Even with those moves, a $7.6 million gap remains, which the city will cover with reserve funds to keep services running.
City officials warned the relief won’t last. Without new revenue or further cuts, the deficit is projected to grow to $9.8 million in 2027-28 and to $13.8 million or more by mid-2029, and could force 59 more position cuts as soon as next summer, reaching into police, fire and recreation.
To close the gap, the council is weighing asking voters for new revenue in November. The city’s Measure Q sales tax, worth about $25 million a year, expires March 31, 2031.