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Residents will have an opportunity to give their two cents on San Ramon's budget at a community workshop on Jan. 28.

This year, City Council dealt with a $300,000 shortfall through a combination that included taking money out of reserves. San Ramon spent $1.9 million more than it's expected to bring in during the current fiscal year, which ends June 30. Revenues were $49.2 million, and expenditures were $51.5 million, with an additional draw down of $500,000 for health care.

City officials are expected to ask tough questions at the meeting, including whether a balance budget be achieved without a major drawdown from reserves. The Council will also solicit input on what could be done to increase revenues and possible cuts to programs and services.

The trend of drawing on the city's reserves is predicted to continue through June 30, 2018, with the city's deficit peaking in the 2014/15 fiscal year. San Ramon's deficit will hit $4.7 million that year, which includes another half-million dollars for health care and $1.5 million to pay down bond debt.

Without changes, San Ramon's reserves will drop to about $10.9 million by the 2017/18 fiscal year, according to the report presented to City Council. In the 2011/12 fiscal year, it was at $33.5 million and has since dropped $2 million to $31.5 million, a trend that's expected to continue for the next five years.

Administrative Services Director Eva Phelps will provide an overview of these trends and the city budget process, along with revenues, expenditures and future planning efforts. Residents will learn how the officials calculate future budget projections and how the city plans to prioritize services.

At a recent meeting, staff presented a list of 118 items that could be cut from the budget, ranging from the large -- $200,000 in earthquake insurance that's been dubbed "optional" to the small -- $150 a year for newspapers.

That list totals more than $5.3 million, 10 percent from each department, but City Manager Greg Rogers said City Council will have to decide how much it wants to cut and whether, for example, to cut radically in one sweep or to ease into the cuts gradually.

The city is looking at other options as well, including bringing in new revenue. Without cuts or additional revenue, next year the draw down of reserves nearly doubles, climbing to $3.6 million.

The public discussion will be at 7 p.m. on Jan. 28 at the San Ramon Community Center, (terrace room, 12501 Alcosta Boulevard) with a goal-setting session to be held at Forest Home Farms at 1 p.m. the following day. The goal setting session is open to the public.

"From that goal-setting session, I think we'll have a framework to go on," said Mayor Bill Clarkson.

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