- Written by Marc Albert
Sebastopol city seal.
After some last minute drama involving the transfer of money between different city accounts, elected leaders in Sebastopol approved a new budget this week, with a few economies.
The city of roughly 7,500 residents has been projecting a rising tide of red ink that officials warn will eat through financial reserves in a handful of years. Officials are hopeful local residents will approve a sales tax increase in November and that a long awaited hotel will one day ease the revenue crunch.
The approved 15 million dollar spending plan taps about $700,000 of reserve funds and makes a number of economies, including trimming 20,000 dollars from the city manager’s budget for financial analysis.
But it was word that the city’s general fund would extend a million dollar loan to the city’s water and sewer fund that drew the ire of a handful of residents, including a man who identified himself as Robert. He and other speakers accused officials of transferring funds from the water account to the general fund in the past, and took umbrage with plans to send the money back in the form of a loan, with interest.
Commenters, including two who hinted at lawsuits, spoke before councilmember Sandra Maurer floated making a direct payment and nixing the interest charges.
According to a report prepared for the council, the budget will leave the city with a projected year end balance just shy of $3 million.
