Rohnert Park voters could see a funding request on the November ballot aimed at stabilizing city revenues and closing a long-term operating deficit pegged at $10.8 million.
The City Council on Tuesday will consider placing a half-cent, general purpose sales tax on the ballot that could bring in $5.5 million annually into the $57.8 million general fund to help maintain city services and prevent potential cuts in the coming year to public safety, parks and recreation services and maintenance, according to the city.
The measure would be in addition to an existing half-cent sales tax already levied on taxable purchases made within Sonoma County’s third largest city, raising Rohnert Park’s supplemental sales tax to one cent, or 1%, and the city’s overall sales tax rate to 10.25%.
That means taxpayers would pay an additional 50 cents for every $100 spent, though groceries and medicine are exempt from sales taxes under state law.
The proposal would need a simple majority to pass in November. It comes as Rohnert Park leaders over the past two years have sought to curtail rising payroll costs and other expenses that have outpaced declining revenues by holding positions vacant, delaying infrastructure work and tapping funds the city receives from Graton Rancheria to balance the budget.
Budget officials, in a report prepared for the council ahead of Tuesday’s meeting, said despite those efforts, the city’s budget woes are projected to continue over the next several years.While budget cuts as well as casino funds have addressed immediate funding needs, officials wrote, it’s not sustainable and additional revenue is needed to help turn around the struggling budget.
Placing the measure on the November ballot would take approval of four out of five council members.
If the council endorses moving forward with the proposal, it would be one of several items on a packed ballot, where voters also will weigh who will fill two council seats, an $830 million bond to help fund repairs and upgrades at Santa Rosa Junior College and more than a dozen state measures.
The city currently brings in about $5.5 million from an existing half-cent sales tax first approved in 2010 as city leaders sought to climb out of the Great Recession. The budget crisis forced the council to declare a state of fiscal emergency and ultimately turn to voters to help hold the budget together.
The tax, initially intended to expire in 2015, was permanently extended in a 2013 special election.
In addition to the local sales tax, a portion of the base state sales tax of 7.25% is redirected to city coffers.
Sales tax revenue in the current budget was set at about $15.7 million, about 27% of the city’s total general fund revenues, but it’s an increasingly vulnerable revenue source.
Several business closures in recent years, including Burlington Coat Factory, Red Lobster and the 99 Cent Only Store, led to dips in sales tax revenue and cities across the region have reported declines as people purchase more goods online rather than at brick-and-mortar stores that contribute to the local economy.
Meanwhile, personnel costs, insurance, vehicle and contract expenses continue to grow and the city faces other as yet unknown costs tied to implementing the city’s updated general plan and what staff described as unfunded mandates by the state, according to the staff report.
Long-term projections show expenses are expected to grow by about 3.3% annually over the next four years while revenues will continue seeing a steady decrease of more than 2%, resulting in a deficit of up to $10.8 million in fiscal year 2030-31.
Additional funding from the new half-cent sales tax would go toward maintaining general city operations, including police and fire services, according to the city.
The measure, as presented by staff, would not have a sunset date, meaning it would remain in effect until repealed by voters via another ballot measure. The city would begin collecting the new tax in April 2027.
You can reach Staff Writer Paulina Pineda at 707-521-5268 or paulina.pineda@pressdemocrat.com. On X (Twitter) @paulinapineda22.
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