Santa Rosa Faces $17.5 Million Deficit Despite Stabilizing Sales Tax

Santa Rosa Faces $17.5 Million Deficit Despite Stabilizing Sales Tax

Santa Rosa finance officials warned the City Council Tuesday that while local sales tax revenue is finally leveling out, it isn’t enough to outpace a “snowball effect” of rising costs. According to the Press Democrat, the city is projecting a $17.5 million general fund deficit for the upcoming fiscal year, driven largely by a 10% jump in payroll and benefits. To bridge the gap, administrators are proposing a mix of tapping into reserves, cutting…