Santa Rosa City Council Regular Meeting - April 21, 2026

The Santa Rosa City Council met on April 21, 2026, starting at 12:16 p.m. after a delayed start due to Zoom technical difficulties. Only four of seven council members were present (Mayor Stapp, Vice Mayor Okrepkie, Council Members Alvarez and Rogers), with Council Members Bañuelos, Fleming, and MacDonald absent. The meeting included two study sessions on the General Fund budget and CalPERS pension unfunded liability, a proclamation for Sexual Assault Awareness Month, consent items, a report on the regional water reuse system budget, and a public hearing on the FY 2026/2027 HUD Action Plan.

Consent Calendar

• Amendment to MOU with County Probation for Weed Abatement (Item 13.1): Approved increase of $68,000, total not to exceed $167,000.
• Amendment to Professional Services for Calistoga Road Pavement Rehabilitation (Item 13.2): Approved $499,100 increase, total not to exceed $908,900.
• Construction Contract Award for Pierson St Rehabilitation (Item 13.3): Awarded to Coastside Concrete & Construction, Inc. for $1,584,746, with a 20% contingency, total $1,901,695.
• Third Amendment for Computer Aided Dispatch System (Item 13.4): Approved $238,514 increase, total not to exceed $1,270,300.
• Payment to AT&T for Utility Relocation at Fire Station 5 (Item 13.5): Approved $45,917.45 payment and delegated signature authority to department directors.
• Adoption of 2026 CityBus Public Transit Agency Safety Plan (Item 13.6): Resolution adopted (RES-2026-041).
• Adoption of Remote Participation Accommodation Policy and Repeal of Policy 000-34 (Item 13.7): Two resolutions adopted (RES-2026-042 and RES-2026-043).
• Second Reading of Ordinance for Conditional Use Permit Process Improvements (Item 13.8): Ordinance adopted (ORD-2026-006).

Public Comments & Testimony

• Public Comment on Non-Agenda Matters (Item 14): Fred spoke about city staff salaries and cost of living adjustments, noting the definition of disadvantaged community at 80% of state median household income and requesting similar adjustments for the public.
• Public Hearing on HUD Action Plan (Item 16.2): Victoria Yanez spoke about the needs of residents with very low or no income and asked if they are considered in the plan. Staff confirmed programs serve individuals from zero to 60% of area median income.
• Second Public Comment on Non-Agenda Matters (Item 18): Victoria Yanez spoke about the Bethlehem Towers neighborhood, mentioning concerns about a local market removing its garbage can and high prices.

Discussion Items

• Study Session 4.1: General Fund Budget Update:
  • Chief Financial Officer Scott Wagner and Budget Manager Veronica Conner presented a projected $17.5 million general fund deficit for FY 2026-27, driven by expiring grant funding (SAFER, IN-RESPONSE), salary growth, and public safety overtime gaps. Revenues are projected at $223 million (up 3.6%), expenditures at $233.5 million (up 7.7%). Property and sales taxes account for over half of revenues. Police and fire departments comprise 65% of expenditures.
  • Staff proposed a two-year deficit reduction strategy: year one using $8.4 million in reserves, $1 million from major apparatus lease financing, $3.8 million from CalPERS cost avoidance (Option 1), leaving $4.3 million in department reductions. Department heads will present reduction options on May 5-6.
  • Council Member Rogers expressed reluctance to continue using reserves and emphasized the need to define core services. Vice Mayor Okrepkie noted the city's workforce has decreased ~17% since 2007 while population grew 15%.
• Study Session 4.2: CalPERS Pension Unfunded Liability Cost Avoidance:
  • Scott Wagner and NHA Advisors Vice President Michael Myer presented options to manage the city's $482 million unfunded accrued liability (UAL), with $331 million attributable to the General Fund. The city has a $14.5 million Section 115 trust and $26 million in total pension reserves.
  • Three options were presented: Option 1 (staff recommended) - a "fresh start" with CalPERS to level payments at ~$32-33 million annually, combined with strategic withdrawals from the 115 trust, achieving $36.6 million in total savings and paying off UAL six years earlier (by 2041). Option 2 uses only the 115 trust without fresh start ($30 million savings). Option 3 liquidates the trust to pay down specific UAL layers ($32.5 million savings).
  • Council directed staff to proceed with Option 1, with Council Member Rogers requesting a policy for ongoing pension management. The vote was 4-0 (three absent).

Key Outcomes

• Budget Direction: Staff directed to return on May 5-6 with proposed department reductions totaling $4.3 million as part of a two-year deficit strategy. Council expressed support for Option 1 CalPERS pension strategy.
• CalPERS Fresh Start Approved: Council directed staff to amend the city's contract with CalPERS to implement Option 1 (fresh start), locking in level payments and using the 115 trust for near-term budget relief. Estimated FY 2026-27 savings of $3.8 million.
• HUD Action Plan Adopted: Resolution RES-2026-045 approved authorizing submittal of the FY 2026/2027 Action Plan to HUD, accepting $1,268,543 in CDBG and $620,063 in HOME funds (total $1,888,606). Public services funding recommendations will return June 2.
• Regional Water Reuse Budget Approved: Resolution RES-2026-044 approved the preliminary FY 2026-27 budget: $54,614,543 for O&M, $13,000,000 for CIP, and $18,306,469 for debt service, with allocations to partner agencies.
• Airport Land Use Commission Appointment: Council directed the Mayor to support Ariel Kelley's appointment.
• Wildland-Urban Interface Fire Code Hearing: Continued to a future date.
• Minutes Approved: April 7, 2026 Regular Meeting and April 10, 2026 Special Meeting minutes approved. March 24, 2026 minutes continued.