Sonoma city leaders will consider dipping into the city's financial reserves to offset a budget deficit that threatens an array of services, including several that are popular with youth and seniors.
The City Council scheduled a public meeting Thursday night to discuss the city's budget problems, which include a projected deficit of $170,506 and the potential loss of state funds for two community service officers.
City Manager Linda Kelly warned in a letter to councilmembers that the city cannot rely solely on cuts to balance the budget this year without impacting the city's core public functions.
Kelly said the city's economy appears to have bottomed-out, leading her to forecast modest revenue gains from property taxes and other sources.
She projected the city's overall general fund spending will be $11.32 million in the coming fiscal year.
The city's budget includes $140,000 sought by four non-profit agencies that essentially provide park and recreation programs for the city.
The Sonoma Valley Boys and Girls Club is seeking $58,000 to support after-school and summer activity programs that serve hundreds of kids.
Dave Pier, the club's executive director, said those programs would have to be scaled back if the agency does not get the city money, which he said amounts to less than 4 percent of the club's $1.5 million operating budget.
"We understand the city's budget is really tight and they have to make decisions, just like we've had to do," he said.
The Vintage House, which serves about 2,000 Sonoma seniors annually, is asking for $30,000. Executive Director Cindy Scarborough said she, too, would have to make trims to programs without that money or scramble to find another source of revenue.
"We are already lean and mean," she said.
The Sonoma Community Center is asking for $30,000 to support several activities, including an environmental education program and the annual Fourth of July parade.
The Sonoma Ecology Center is seeking $22,000 for after-school and summer programs.
Whether the non-profits and other city services maintain their level of funding could depend on how comfortable councilmembers are with a second year of deficit spending. The council last year pulled $264,472 from reserves.
Sonoma's operating reserves total $1.5 million. The city also maintains reserve funds for special projects, $2.2 million, and an emergency reserve fund of $2.1 million.
Mayor Laurie Gallian said Wednesday that she supports dipping into the city's reserves again.
"I do think these are challenging times and we are going to have to go into reserves to balance the budget. I don't know if that's the only mechanism," she said.
Councilwoman Joanne Sanders said she supports making more cuts to non-essential city services in combination with dipping into reserves if necessary.
She also wants funding for the four non-profits to be reduced by 12 percent, which is equal to cuts made to other city departments.
Both Gallian and Sanders support keeping two community service officers who assist the Police Department with everything from fingerprinting to animal control.
That could require the city to come up with $100,000, which is equal to the grant amount provided to the city by the state. State lawmakers have yet to decide whether to extend the portion of vehicle licensing fees that funds the program.
Longer-term, Kelly asked councilmembers to consider whether they want to ask voters to approve a 2 percent increase in bed taxes that would raise a projected $440,000 and help ease the city's budget crunch.
The city also is exploring whether to create a Tourism Improvement District in a revenue-sharing deal with local hoteliers and inns.
Gallian said the City Council is hoping to adopt a final budget at its June 20 meeting.
UPDATED: Please read and follow our commenting policy: