Petaluma's mid-year budget review again is one of those mixed-message scenarios.
The city's general fund reserves are projected to be about $1.4 million by the end of June, which is a far rosier projection than just a few years ago when the fund had been drained to a few thousand dollars.
But, Finance Director Bill Mushallo warns, that rainy day fund will be all but eliminated in the next fiscal year without cost cutting or revenue increases.
In a special meeting Monday, the city council will hear Mushallo's budget analysis and consider voting on changes to make ends meet for the rest of the fiscal year, which ends June 30.
Reserves remain "precariously low" at about 4 percent of the total budget, compared to the city policy of keeping 15 percent in the emergency fund, Mushallo said in a staff report to the council.