Downtown Density, Money Plans: What's Next On Petaluma City Council Agenda

PETALUMA, CA — The Petaluma City Council will consider midyear budget adjustments and decide how to proceed with a referendum on downtown development rules at its March 2 meeting.

City staff is asking the council to introduce an ordinance amending appropriations for the fiscal year ending June 30, reflecting updated revenues, project timelines, and operational costs across the general fund, utilities, enterprise funds, and capital projects. The adjustments include funding shifts for infrastructure projects, park maintenance, facility repairs, and public safety reimbursements, along with updated revenue projections tied to sales taxes, property taxes, and fees.

The midyear financial update also carries forward funding for affordable housing projects, adjusts capital improvement budgets to reflect refined cost estimates, and reallocates funds between departments and programs. The update itself is informational and does not require council action, but the accompanying budget amendments do.

Separately, the council must decide how to respond to a certified referendum challenging a General Plan amendment that would increase allowable building density in a two-block downtown area. Under state law, the council must either repeal the amendment or place it before voters.

If submitted to the ballot, the measure could appear on the June 2 statewide primary election to reduce costs, according to estimates from the Sonoma County Registrar of Voters. The amendment is intended to encourage additional housing and economic development while maintaining design and historic protections.

The meeting begins at 6 p.m. on March 2 in the Petaluma City Hall, 11 English St.