Sonoma council adopts midyear budget adjustments after staff warns EMS revenue may fall short

City finance staff presented a midyear fiscal update covering revenue and expenditures through Dec. 31, 2025 and proposed technical and operational adjustments for the current fiscal year.

Key figures presented: general‑fund total revenue budget $29.4 million with year‑to‑date actual revenue of $12.8 million; total general‑fund expenditures budget $29.9 million with YTD actual expenditures of $14.4 million. The finance presentation highlighted major revenue streams: TOT (transient occupancy tax), property tax, sales tax and EMS (ambulance billing). Staff reported an EMS billing revenue shortfall through November 2025 of about $1.0 million year‑to‑date versus a $3.5 million adopted budget and said staff had requested further information from the EMS billing administrator.

The midyear packet included four requested midyear adjustments: an interfund transfer alignment to long‑term building maintenance ($9,834 general fund and $28,779 water fund alignment), $11,000 for recreation management software implementation, $10,000 for recreation instructor payments to support pilot programming, $100,000 additional funding for a storm-drain condition assessment and $15,000 to cover liability claim premium adjustments (split $10,000 general fund, $5,000 water fund). Staff said the total general-fund impact of the major requests was $140,834.25 and $33,778.61 for water fund impacts.

Council discussed EMS revenue recognition and receivables timing, the reserve balance and cemetery‑fund history. Finance staff characterized the midyear revenue forecast as conservative and said some revenue categories (TOT and property tax) were expected to outperform budget while EMS revenues were trending below budget; staff forecasted a modest year‑end general‑fund surplus of $100,000.

Council adopted the midyear budget report and resolution to approve the adjustments by roll call vote (unanimous). The staff indicated the general fund adjustments will be funded from reserves and water‑fund adjustments from water reserves.

Ending — Next step: staff will continue to monitor EMS billing collections and update forecasts as more data arrive and implement approved midyear adjustments.