City of Sebastopol — Fiscal Year
Proposed Budget — Adopted
Total General Fund Budget
FY ExpendituresOperating Deficit
Revenue shortfall — one-time reserves usedReserve Fund
Exceeds % GoalUnderstanding your city's budget — and what it means for your street, your neighborhood, and Sebastopol's future.
Structural Deficit
Sebastopol's General Fund is projected to run a deficit in FY 2026-27. Expenditure growth — driven by public safety staffing, pension obligations, and infrastructure investment — is outpacing revenue growth. The city is drawing on prior-year reserves to bridge the gap. This is a structural challenge that will require long-term solutions.
Where the money comes from
Where the money goes
* CIP / Infrastructure Projects — General Fund transfers directed to capital improvement projects, including $613K in Measure U pavement funding (streets, sidewalks, drainage). Public Works operations separately cover day-to-day streets maintenance, traffic signals, and facilities. Additional road capital comes from Gas Tax and Measure M special revenue funds (not shown here — these sit outside the General Fund).
Reserve Fund Status — Unassigned General Fund Balance
Measure U Roads Tax
Measure U is a ½-cent (0.5%) local sales tax approved by Sebastopol voters in April 2025. It is NOT a 1% tax — it is a half-cent (0.5%) sales tax. Projected cumulative revenue through end of FY 2026-27: . City policy dedicates 40% of proceeds to streets, roads, drainage, and parks infrastructure.
Current policy: 40% of Measure U goes to infrastructure ⚠ Policy is a Council decision — not locked in law
What if the Council raised or lowered that threshold? Drag to explore — the pavement budget below updates automatically.
Policy Limit
$1,365,095
Cumulative allowable
FY26-27 Budget
$612,800
Pavement allocation — this year
Remaining Headroom
—
Under/over policy vs. budgeted
Housing Fiscal Impact
New homes generate property tax, development fees, and ongoing sales tax as new residents shop and eat locally. Drag the slider to model the citywide fiscal effect at different scales of housing production.
Annual Property Tax to City
—
City gets ~17% of 1% of assessed value
Annual Sales Tax to City
—
Local shopping & dining by new residents
One-Time Development Fees
—
⚠ Confirm with Planning Dept.Net Annual Fiscal Impact
—
After ~—/yr service costs
Fiscal Verdict
—
Model Assumptions — stated explicitly
Home value (market-rate): $750,000 assessed value. City gets 17% of the 1% property tax = $1,275/unit/year.
Below Market Rate (BMR): Assessed at $350,000. Same formula = $595/unit/year to city. Most new projects include some BMR units; this model shows market-rate only as a ceiling.
Residents per unit: 2 people assumed. Annual local taxable spending: $4,500/person in retail + $2,000/person at restaurants = $6,500/person/year in local taxable sales.
Sales tax to city: 1% Bradley-Burns (city's share) + 0.5% Measure U = 1.5% total city share. Excludes state/county portions. Grocery staples are sales-tax-exempt in CA.
Service cost: $800/unit/year (police, parks, admin — simplified estimate).
Development fees: $15,000/unit placeholder. ⚠ Confirm with Planning Dept.
These are illustrative estimates, not official city projections. Actual fiscal impacts vary by project, location, unit mix, and service demand. Verify assumptions with city Finance and Planning departments before using in policy decisions.
SR-116 / SR-12 Couplet
The proposed conversion of Sebastopol's downtown one-way couplet (Main St / Bodega Ave) to two-way traffic could increase downtown foot traffic, retail sales, and what nearby homes and businesses are worth. Project cost: ⚠ Pending final engineering study — not yet in proposed budget. Use the sliders to explore the fiscal case.
Additional Annual Sales Tax to City
From increased downtown spending
Increase in Nearby Property Values
5–20% increase seen in comparable projects
Payback Period (Rough Estimate)
From additional sales tax alone
⚠ Pending project cost
Could an EIFD help pay for this?
An EIFD captures the growth in property tax above a base year and uses it to repay bonds. If the street conversion increases what downtown property is worth, that increase generates more property tax — which is the EIFD's repayment source. The street improvement finances itself through the value it creates.
Est. downtown corridor assessed value ⚠ Confirm with County Assessor
$45,000,000
Assumed increase in property values near the corridor
12%
Added Property Value
—
Annual Tax Increment
—
1% of added value per year
Bond Capacity (20 yr @ 4%)
—
Rough estimate — verify with bond counsel
Caltrans Partnership
SR-116 / SR-12 are state highways — Caltrans typically funds the majority of work on state routes. EIFD covers the local match and streetscape portion.
Assumptions: 1% property tax rate, full increment captured by EIFD, 4% bond rate over 20 years. Actual bond capacity depends on participating agencies, assessed value verification, and legal structure. ⚠ Confirm downtown AV with Sonoma County Assessor's Office
Comparable examples — not identical projects. Outcomes depend on local conditions, scale, and complementary investment. Verify independently before citing in policy documents.
Enhanced Infrastructure Financing District
An Enhanced Infrastructure Financing District (EIFD) uses tax increment financing to fund public infrastructure. As property values in the district grow, the additional property tax revenue (the "increment") is dedicated to financing infrastructure bonds — without raising taxes. Sebastopol could use an EIFD to fund major capital projects that the General Fund cannot absorb. Note: The EIFD is not yet formally established — it requires Council action.
New: a plain-English guide to the EIFD & how it could fund the Commons and our streets →
Current Increment
$0
⚠ EIFD not yet formally established The current tax increment available is $0. Once established, the city projects 3%/year property value growth within the district, generating increasing increment over time.
Event Economy
Sebastopol hosts the Apple Blossom Festival and other community events that generate transient occupancy tax (TOT), local sales tax, and business revenue. Events that draw out-of-town visitors create particularly strong fiscal returns. Use this tool to model the fiscal impact of events at different scales.
Direct Visitor Spending
Out-of-city attendees only
Est. Sales Tax to City
local portion
Est. TOT Revenue
20% overnight, $150/night avg · ⚠ Confirm TOT rate
Net Fiscal Value to City
After cost recovery charges to organizer
Get Involved
Your input shapes Sebastopol's financial future. Attend a budget session, email the Council, or share this dashboard with a neighbor.
Public budget hearings are your opportunity to speak directly to the Council. View the full meeting calendar for upcoming dates.
View CalendarWrite to the full City Council at once. Let them know your priorities for roads, housing, public safety, and fiscal sustainability.
Email Councilcouncil@cityofsebastopol.gov
Share a link to this dashboard — including your custom Measure U road allocation — with neighbors, friends, and community members.
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Hi — I'm an AI assistant briefed on Sebastopol's FY 2026–27 proposed budget.
Ask me about revenues, expenditures, Measure U, reserves, capital projects, or anything else in the city's finances.
AI responses may contain errors. Verify through official city budget documents.