After Years of Tightening the Belt, A Little More Leeway for City Budgets

After five years of tightening the belt, the city of Petaluma can finally contemplate socking away cash for a rainy day fund, the result of incoming development and one-time payments from Petaluma Refuse & Recycling.

The city’s budget has contracted by more than one third since 2008, slashing services and jobs, and freezing salaries.

Now City Manager John Brown says Petaluma is finally in a position to set up a reserve fund that can be utilized for things not included in the budget, such as an Alcohol Resource Officer who would make sure local bars and restaurants are following the law, and other one-time expenses.

“You need to take care of your reserves before you start talking about restoring programs and services,” Brown told Petaluma Patch this week. “You need to have a sound financial footing…the contingency funds is something every healthy city has.”

Brown says the goal is to set up a 20 percent reserve fund--roughly $6 million--with 15 percent designated for emergencies and unexpected costs and 5 percent more flexible, contingency money that can augment existing city services.

Currently, Petaluma's reserves are less than 5 percent.

The extra cash is available thanks to a $500,000 annual payment from Petaluma Refuse & Recycling, the garbage company that received a no-bid contract last year in exchange for the money. In addition to the $500,000 a year, PR&R will also pay Petaluma $250,000 a year for street maintenance.

On top of that, Petaluma will from Sonoma County for property tax administrative fees following a statewide lawsuit.

In addition to the one-time payments, Petaluma stands to get an estimated $1.7 million a year from the Deer Creek (Friedman’s) and Regency (Target) shopping centers.

The money will be spent on replacing city vehicles, especially for law enforcement, paying down pension liabilities, paying for storm maintenance and repairing streets. On the latter, Brown hopes to have at least $500,000 a year to finally tackle Petaluma’s notoriously terrible roadways.

The city will hold a special workshop to discuss its finances on Monday, April 8. The meeting starts at 5:30pm at Petaluma City Hall, 11 English St.