Date Posted: 11/13/2025
SPECIAL MEETING of the Larkspur City Council
Wednesday, November 19, 2025: 3:00 p.m.
Central Marin Police Authority Community Room
250 Doherty Drive, Larkspur, CA 94939
Catherine Way, Mayor Stephanie Andre, Vice Mayor
Scot Candell Sarah Margulies Gabe Paulson
SPECIAL MEETING 3:00 P.M.
1. CALL TO ORDER
2. PUBLIC COMMENT (Only for matters not listed on the agenda) This is the time for members of the public to address the City Council regarding items that are not on the agenda or that are listed as part of the Consent Calendar. Please approach the podium, and state your name and city (optional). Individuals have 3 minutes to speak; 5 minutes if representing a group. The Council is not permitted to take action on matters that are not on the agenda. It may engage in limited discussion, refer the matter to staff, or direct staff to place a matter on a future agenda. It may also add a matter to the agenda if it can be demonstrated to be of an emergency nature or the matter came to the City’s attention after the posting of the agenda and requires immediate action. (Gov. Code §54954.2)
3. WORKSHOP – GENERAL FUND FISCAL HEALTH AND OUTLOOK
This session is for the Council to discuss short- and long-term values and objectives for the City as it pertains to the annual budget. While general direction may be given to the City Manager, the Council will not make specific decisions or take any actions. The Council may direct the City Manager to place specific topics and items on the agenda of future, regular Council meetings.
4. ADJOURN
Special & Regular Meeting of November 19, 2025, at Larkspur City Hall, 5:30 P.M.
NOTICE IS HERE BY GIVEN: If you challenge any item on this agenda in court, you may be limited to raising only those issues you or someone else raised at the public hearing herein described, or in written correspondence delivered to the City Clerk at, or prior to, the public hearing. [G.C. § 65009 (b) (2)]
In the interest of time, the City Council has established time limits. Public Hearings: applicants and /or appellants shall make their presentations within 10 minutes and will be allowed a 3-minute summation period. Public participation shall be limited to 3 minutes per speaker per topic. These time limits may be waived by a majority vote of the City Council. [G.C. § 54954.3].
Any writings or documents provided to a majority of the City Council regarding an item on this agenda will be made available for public inspection at the Customer Service Counter at City Hall located at 400 Magnolia Avenue, Larkspur, CA and at the main counter of the Library located at the same address during normal business hours. (SB 343, amending G.C. Section 54957.5) ACCESS TO MEETINGS: In compliance with the Americans with Disabilities Act, meeting facilities are accessible to persons with disabilities and meeting materials can be provided in appropriate alternative formats. If you require special assistance of a disabilityrelated modification or accommodation to attend or participate in a meeting, please contact [email protected] or call 415-927-5002 at least 72-hours prior to the meeting. Individuals who require Interpretation Services for a meeting should also contact the Office of the City Clerk at [email protected] or (415) 927-5002 at least 72-hours prior to the meeting.
ADMINISTRATIVE
MEMORANDUM
November 13, 2025
TO: City Council
FROM: Dan Schwarz, City Manager
SUBJECT: Workshop – General Fund Fiscal Health and Outlook The purpose of this two-hour workshop is to discuss the fiscal health of the City’s General Fund. The workshop will consist of two parts. The first part will be a review of the forecasting tools that staff has developed to project current trends over the next five years. The second part of the workshop will serve as a primer on the tools the City might consider to improve the five-year outlook. This portion of the workshop will review options to increase revenues and the exercise staff recommends we initiate to consider reductions in expenditures.
To review the General Fund forecast, Administrative Services Director Emilia Gabriele has prepared the attached packet of tables and graphs. This information will look familiar to the Council, as we discussed it as part of the process to adopt the Fiscal Year 2025-26 Budget. During the workshop, Ms. Gabriele will provide her assessment of current trends through the first quarter and half of the fiscal year. As a reminder, the first five months of the fiscal year are the City’s leanest months with respect to revenue.
The City relies heavily on two payments of property tax that occur in December and April each year. Sales tax receipts lag by two months – the City typically sees an uptick in sales tax numbers in January and February, as these distributions reflect activity during the holiday season.
To prepare for the second part of the workshop, the Council is encouraged to review the following documents:
CalCities Primer on Revenue
Institute for Local Government "Basics of Municipal Revenue" While both of these documents were published in 2016, the fundamental concepts that they review continue today.
$9.6 $9.8
$10.4
$10.9
$11.7 $12.2
$12.8 $13.3
$13.9
$15.4
$16.3 $16.6
$17.2
$17.9
$18.6
$19.3
3.9%
2.6%
5.8%
5.4%
6.5%
4.7% 5.0%
3.6%
5.0%
10.5%
5.5%
1.9%
3.9% 3.9% 3.9% 3.9%
0%
2%
4%
6%
8%
10%
12%
$6
$8
$10
$12
$14
$16
$18
$20
Actual
FY14/15
Actual
FY15/16
Actual
FY16/17
Actual
FY17/18
Actual
FY18/19
Actual
FY19/20
Actual
FY20/21
Actual
FY21/22
Actual
FY22/23
Actual
FY23/24
Actual
FY24/25
Proposed
Budget
FY25/26
Forecast
Budget
FY26/27
Forecast
Budget
FY27/28
Forecast
Budget
FY28/29
Forecast
Budget
FY29/30
City of Larkspur Property Tax
Revenue in Millions and Year-to Year % Change (purple line) (in millions)
$2.05
$2.61 $2.66 $2.78
$3.43
$2.57 $2.69
$3.20 $3.18 $3.06 $3.00 $3.10 3.20 3.29 3.39 3.49
0.5%
27.3%
1.9%
4.5%
23.4%
-25.0%
4.5%
18.8%
-0.5%
-3.9% -2.0%
3.6% 3.0% 3.0% 3.0% 3.0%
-30%
-20%
-10%
0%
10%
20%
30%
$-
$1
$1
$2
$2
$3
$3
$4
$4
Actual
FY14/15
Actual
FY15/16
Actual
FY16/17
Actual
FY17/18
Actual
FY18/19
Actual
FY19/20
Actual
FY20/21
Actual
FY21/22
Actual
FY22/23
Actual
FY23/24
Actual
FY24/25
Proposed
Budget
FY25/26
Forecast
Budget
FY26/27
Forecast
Budget
FY27/28
Forecast
Budget
FY28/29
Forecast
Budget
FY29/30
City of Larkspur Sales Tax
Revenue in Millions and Year-to Year % Change (purple line) (in millions)
$812
$888 $863
$918 $939
$634
$377
$799
$954
$879 $877 $912 $935 $958 $982 $1,007
15.5%
9.4%
-2.8%
6.4% 2.2%
-32.4%
-40.5%
111.9%
19.4%
-7.9%
-0.2% 4.0% 2.5% 2.5% 2.5% 2.5%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
$-
$200
$400
$600
$800
$1,000
$1,200
Actual
FY14/15
Actual
FY15/16
Actual
FY16/17
Actual
FY17/18
Actual
FY18/19
Actual
FY19/20
Actual
FY20/21
Actual
FY21/22
Actual
FY22/23
Actual
FY23/24
Actual
FY24/25
Proposed
Budget
FY25/26
Forecast
Budget
FY26/27
Forecast
Budget
FY27/28
Forecast
Budget
FY28/29
Forecast
Budget
FY29/30
City of Larkspur Transient Occupancy Tax (TOT)
Revenue in Millions and Year-to Year % Change (purple line) (in thousands)
$4.07 $4.07 $4.20
$4.45
$4.71 $4.93
$5.36 $5.54 $5.74 $5.94 $6.15
0.0%
3.1%
6.0% 5.9% 4.6%
8.7%
3.5%
3.5% 3.5% 3.5%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
$2
$3
$4
$5
$6
$7
$8
FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 Proposed Budget
FY25/26
Forecast
Budget
FY26/27
Forecast
Budget
FY27/28
Forecast
Budget
FY28/29
Forecast
Budget
FY29/30
Central Marin Police Authority
City of Larkspur Contribution and Year-to-year % Change (purple line) (in millions)
$4.73 $4.67 $4.87
$5.44 $5.66
$6.37
$6.86
$7.37 $7.63 $7.90 $8.18
-1.3%
4.3%
11.8%
4.0%
12.6%
7.7%
7.4%
3.5% 3.5% 3.5%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
$2
$3
$4
$5
$6
$7
$8
$9
$10
FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 Proposed Budget
FY25/26
Forecast
Budget
FY26/27
Forecast
Budget
FY27/28
Forecast
Budget
FY28/29
Forecast
Budget
FY29/30
Central Marin Fire Authority
City of Larkspur Contribution and Year-to-year % Change (purple line) (in millions)
2025-26 2026-27 2027-28 2028-29 2029-30
Adopted Forecast Forecast Forecast Forecast
Budget Budget Budget Budget Budget
Revenue 25,082,381 25,712,347 26,563,497 27,446,469 28,362,476 Transfer In 807,292 551,494 551,494 551,494 551,494
Revenue and Transfer In $ 25.89 $ 26.26 $ 27.11 $ 28.00 $ 28.91 Less
Expenses 24,578,192 25,298,914 26,141,162 27,009,889 27,855,474 Transfer Out 1,481,480 1,526,937 1,580,417 1,631,103 1,678,943 Expenses and Transfer Out $ 26.06 $ 26.83 $ 27.72 $ 28.64 $ 29.53 Net Change in Fund Balance (0.17) (0.56) (0.61) (0.64) (0.62) General Fund Revenue and Expenses
Summary - 5-year General Fund Budget Forecast
2025-26 2026-27 2027-28 2028-29 2029-30
Revenue and Transfer In $25.89 $26.26 $27.11 $28.00 $28.91 Expenses and Transfer Out $26.06 $26.83 $27.72 $28.64 $29.53 $25.89
$26.26
$27.11
$28.00
$28.91
$26.06
$26.83
$27.72
$28.64
$29.53
$25
$26
$27
$28
$29
$30
$31
IN MILLIONS
Revenue and Transfer In Expenses and Transfer Out
Major Revenue Lines 2025-26 2026-27 2027-28 2028-29 2029-30 Property Tax - Secured/ERAF 2.5% 4.0% 4.0% 4.0% 4.0%
Property Tax - all Other 0.0% 0.0% 0.0% 0.0% 0.0%
Sales Tax 3.0% 3.0% 3.0% 3.0% 3.0%
Transient Occupancy Tax 2.5% 2.5% 2.5% 2.5% 2.5%
Franchise Fee 0.0% 0.0% 0.0% 0.0% 0.0%
Business Licenses 0.0% 0.0% 0.0% 0.0% 0.0%
Charges for Service/Building Permit 2.6% 2.5% 2.5% 2.5% 2.5% Transfer In Measure B 30.00% 5.00% 5.00% 5.00% 5.00%
Revenue and Transfer In (Note 1) 25,889,673 26,263,841 27,114,991 27,997,963 28,913,970
4.8% 1.4% 3.2% 3.3% 3.3%
Major Expense Lines 2025-26 2026-27 2027-28 2028-29 2029-30 Public Safety - CMPA (Note 2) 5,355,115 5,542,544 5,736,533 5,937,312 6,145,118
8.0% 3.5% 3.5% 3.5% 3.5%
Public Safety - CMFA 6,861,800 7,368,005 7,628,750 7,898,621 8,177,937
7.2% 7.4% 3.5% 3.5% 3.5%
CalPERS Unfunded Accrued Liability 647,974 724,646 779,648 834,651 836,357
38.9% 11.8% 7.6% 7.1% 0.2%
Retiree Health OPEB (pay as you go) 560,792 600,698 635,049 670,851 708,709
9.7% 7.1% 5.7% 5.6% 5.6%
Debt Service - POB 1,379,330 1,424,723 1,478,203 1,528,889 1,576,729
3.4% 3.3% 3.8% 3.4% 3.1%
Bay Cities JPIA (Note 3) 518,731 539,480 561,059 583,502 606,842 -0.5% 4.0% 4.0% 4.0% 4.0%
Salaries & Benefits (Note 4) 6,138,842 6,389,110 6,600,231 6,817,763 7,043,488
0.0% 4.1% 3.3% 3.3% 3.3%
Expense not listed in Above Categories 4,597,088 4,236,645 4,302,106 4,369,403 4,439,238 (Note 5) 0.1% -7.8% 1.5% 1.6% 1.6%
Note 1
Note 2
FY 25-26 includes purchase of two additional vehicles compared to FY 24-25.
Note 3
FY 25-26 Worker Compensation is reduced by $51K due to increase in SIR to $250K.
Note 4
FY 25-26 and beyond excludes two positions previously funded.
Assumes health premium increase of 10% in FY 25-26 and 6% beyond. Assumes COLA of 3% across all years.
Note 5
FY 25-26 includes one-time expense $175K funded with MTC grant and IT refresh $50K.
General Fund Revenue Assumptions
General Fund Expense Assumptions
Forecast Assumptions
FY 25-26 one-time revenue increase of $575K broken down as follows: MTC grant $175K, M-B $160K, M-G $240K. Removing the impact of $575K one-time revenue, the % increase in revenue would be 3.22% instead of 0.9% in FY 26-27. 2024-25 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 Adopted Actuals Adopted Forecast Forecast Forecast Forecast GENERAL FUND Budget
Amendement
Budget Budget Budget Budget Budget
REVENUE
Property Taxes $ 16,018,113 $ 16,268,713 $ 16,560,588 $ 17,203,911 $ 17,873,421 $ 18,569,711 $ 19,293,853 Sales Tax 2,985,957 2,995,593 3,102,882 3,195,969 3,291,848 3,390,604 3,492,322 Other Taxes 1,437,625 1,615,292 1,499,562 1,522,360 1,545,729 1,569,681 1,594,233 Franchise Fees 1,106,000 1,180,520 1,118,697 1,118,697 1,118,697 1,118,697 1,118,697 Licenses & Permits 954,648 1,002,032 911,746 933,866 956,539 979,778 1,003,599 Penalties and Fines 60,025 149,730 60,025 60,025 60,025 60,025 60,025 Use of money and property 15,615 944,431 55,093 40,002 40,002 40,002 40,002 Charges for Services (1) 1,407,469 2,102,554 1,573,783 1,612,513 1,652,233 1,692,967 1,734,741 Other Revenue (2) 41,346 133,977 200,005 25,005 25,005 25,005 25,005 Other Agencies - - - - - - -
TOTAL REVENUE $ 24,026,796 $ 26,392,840 $ 25,082,381 $ 25,712,347 $ 26,563,497 $ 27,446,469 $ 28,362,476
EXPENSE
PERS AUL Lump Sum (3) $ 466,547 $ 451,449 $ 647,974 $ 724,646 $ 779,648 $ 834,651 $ 836,357 City-wide Contract Services (4) 271,129 256,595 350,318 362,330 374,824 387,817 401,329 City-wide OPEB 250,000 250,000 - - - - -
City Council 144,348 115,945 167,831 179,219 186,041 192,815 199,988 Administration (5) 2,358,904 2,520,447 2,435,773 2,529,848 2,601,400 2,675,227 2,751,818 Building Maintenance 697,879 740,397 711,854 738,022 765,200 793,429 822,748 Planning (2) 751,078 751,086 794,184 603,616 622,977 642,989 663,773 Fire (6) 6,571,037 6,578,304 7,058,460 7,579,002 7,851,763 8,134,346 8,427,109 Police (6) 4,928,743 4,928,743 5,355,115 5,542,544 5,736,533 5,937,312 6,145,118 Building Inspection 1,305,843 1,597,728 1,296,946 1,332,145 1,364,109 1,397,051 1,431,143 Engineering (7) 1,322,988 1,241,793 1,157,427 1,206,406 1,250,533 1,296,023 1,343,206 Public Works - Streets (8) 1,283,471 1,100,715 1,355,782 1,164,010 1,192,945 1,222,273 1,252,944 Public Works - Parks 1,118,619 1,169,886 1,154,513 1,188,003 1,215,589 1,244,032 1,273,583 Recreation (9) 668,558 578,256 765,490 778,536 793,915 809,816 826,405 TCCC Retiree Medical 31,847 35,344 34,842 37,370 39,491 41,735 44,109 Library 1,013,508 963,854 1,048,603 1,090,137 1,123,213 1,157,392 1,192,864 Heritage Board 1,000 635 1,000 1,000 1,000 1,000 1,000
Debt Service 247,103 242,079 242,080 242,079 241,980 241,980 241,980 TOTAL EXPENSE 23,432,601 23,523,256 $ 24,578,192 25,298,914 26,141,162 27,009,889 27,855,474
EXCESS/DEFICIT OF REVENUE
OVER/UNDER EXPENDITURES 594,195 2,869,584 $ 504,189 $ 413,433 $ 422,336 $ 436,580 $ 507,002 Transfer In from Other Funds (11) 666,283 630,510 $ 807,292 551,494 551,494 551,494 551,494 Transfer Out to Other Funds (12) (1,434,438) (1,332,438) (1,481,480) (1,526,937) (1,580,417) (1,631,103) (1,678,943) TOTAL TRANSFERS (768,155) (701,928) $ (674,188) (975,443) (1,028,923) (1,079,609) (1,127,449)
NET CHANGE IN FUND BALANCE
Before One-time EXPENSE and CAPITAL $ (173,960) $ 2,167,656 $ (170,000) (13) $ (562,010) $ (606,587) $ (643,029) $ (620,447) ONE-TIME EXPENSE (Funded with Reserve)
Transfer out to Tenant Protection Ordinances $ (200,000) $ (87,482) - - - - - TOTAL ONE-TIME EXPENSE $ (200,000) $ (87,482) $ - $ - $ - $ - $ - Use of money/ property - General Fund Reserve $ 280,000 Transfer out to CAPITAL (One-time Funded
with General Fund Reserve) (2,232,000) (666,070) $ (140,000) (14) - - - - NET CHANGE IN FUND BALANCE $ (2,605,960) $ 1,414,104 $ (30,000) $ (562,010) $ (606,587) $ (643,029) $ (620,447) Notes - FY 25-26 Proposed Budget
(1) Increase is primarily due to synthetic field rental ($100K) and hall gym rental fees ($50K) not previously budgeted. (2) Other Revenue includes one-time MTC $175K grant for parking study budgeted in the Planning expense line item. (3) $140K of the 648K PERS unfunded accrued liabilities is funded with general fund reserve. (4) increase is due to a one-time $50K IT refresh expense and one-time $15K mini-grants funded with Measure G tax measure. (5) Increase is primarily due to the addition of one position to provide human resources shared services to City of Larkspur and Central Marin Policy Authority. (6) Increases are primarily due to recently completed Police and Fire services contract negotiation and the purchase of two additional electric vehicles for Police services . (7) Decrease is due to the unfunding of one full-time equivalent position. (8) Increase is primarily due to one-time expenses for mobile generator ($150K) and water pump ($75K) funded with Measure G fund. (9) Increase is primarily due to synthetic field and hall gym rental maintenance and capital expense contractual obligation $55K/annual funded with rental fees. (10) Increase is primarily due to health expense for anticipated newly retiree and IT usage costs. (11) Transfer in consists of $100K from gas tax fund, $344K from Measure B fund, $301K from Measure G fund. $25K from TOT fund, and $37K from Library Donations. (12) Transfer out consists of $1,381,480 to POB debt service fund and $100K to insurance fund.
GENERAL FUND ACTUALS & FORECAST(11.12.25)
(13) Net change change in fund balance is funded with one-time $50K Technology Improvements and $120K non-assigned General Fund Reserve to mitigate temporary loss of Skylark Apartments property tax revenue due to reassessment. (14) Use of General Fund Reserve to fund capital projects: Recreation Offices Piper Park $40K; ADA Transition Plan Implementation/Update $50K; Sustainability and CAP Implementation $50K. 1