FAQ Topic: Finance

What is the status of the City’s financial reserves?

As a result of years of fiscal prudence, City has developed healthy financial reserves, which function as savings accounts or “rainy day” funds.  The Emergency Reserve (target level = $1.5 million) helps fund the costs of responding to a major fire, earthquake, or pandemic. The purpose of the Operating Reserve (target level = amount equal … Continued

What is the City doing to support the local economy through the pandemic?

Keeping our community safe is the City’s highest priority. This includes local businesses and their employees. City staff assignments have shifted to prioritize public education and enforcement regarding Coronavirus related health orders, as well as community support projects such as the food security task force.  The City Council allocated $150,000 from the City’s Housing Trust … Continued

How are City services being affected by the pandemic and the loss in revenues?

With revenues down significantly, the adopted budget is balanced through a combination of spending reductions and use of financial reserves or “rainy day funds”.  At $19.3M, the FY 20-21 adopted budget for General Fund expenditures is about $2M below the amount forecasted for “status quo operations”, and $1.1M below the pre-pandemic budget for FY 19-20. … Continued

How are City revenues being affected by the pandemic?

With its tourism-based local economy, the City of Sonoma relies on revenues that are being significantly impacted by the coronavirus pandemic.  The most greatly affected are hotel taxes (called Transient Occupancy Tax or TOT), which had previously been generating almost 24% of  total General Fund revenues.  Prior to the pandemic, annual TOT revenues were on … Continued

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