COMMUNITY BUDGET WORKSHOP
APRIL 4, 2023
1 AGENDA
2 • Welcome
• Budget Development Process
• Operating Budget Overview
• Capital Improvement Program Overview
• Question & Answer Session
• Next Steps
BUDGET DEVELOPMENT PROCESS – PUBLIC INPUT
3 City Council
Budget Development Study
Session
April 11th
City Council
Budget Workshop
May 9th
City Council
Budget Hearing
June 13th
City Council
Budget Adoption
June 27th
Your input is
critical -
The budget
should reflect the
community’s
priorities.
STRATEGIC PLAN 2021 - 2023
More information: https://www.novato.org/government/city 4 -council/strategic-plan OBJECTIVES:
- Living Well Together
- Great Places
- Environmental Stewardship
- A City That Works
- Economic Vitality
CITY OF NOVATO
OPERATING BUDGET
5 FY22/23 GENERAL FUND SUMMARY
6 General Fund
Budget Summary
Adopted
FY 2022/23
Revenue $ 47.5 M
Expense - $ 49.1 M
Surplus/(Deficit) - $ 1.6 M
Inclusive of Transfers In/Out
FY22/23
Adopted Budget
Deficit = $1.6 M
HISTORICAL BUDGET DEFICITS
7 General Fund
Budget Deficits
Adopted
Budget
FY19/20
Adopted
Budget
FY20/21
Revised
Budget
FY20/21*
Adopted
Budget
FY21/22
Adopted
Budget
FY22/23
Surplus /
(Deficit) $355,700 ($5,746,581) ($2,485,409) ($207,553) ($1,617,273) *September 2020 Budget Revise
FY22/23 GENERAL FUND BUDGET
REVENUE = $47.5
8 Property Tax,
$17.7, 37%
Sales Tax,
$15.8, 33%
Other Taxes,
$4.6, 10%
Charges for
Srvcs, Lic,
Permits,
$4.5, 9%
Grants, Fines,
$1.6, 3%
One-Time
Funds, $1.8, 4%
Transfer In,
$1.5, 3%
Revenue
$47.5 (in Millions)
Top 2
Revenue Sources = 70%
• Property Taxes
• Sales Taxes
PROPERTY TAX SHARE FOR MARIN COUNTY CITIES
7.0%
20.7%
13.9%
18.0%
21.7%
25.8%
18.8%
21.3%
12.2% 11.5%
7.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Novato Belvedere Corte
Madera
Fairfax Larkspur Mill Valley Ross San
Anselmo
San Rafael Sausalito Tiburon
Source: County of Marin, Department of Finance (January 2021) 9
PROPERTY TAX - PROPORTIONAL SHARE
Novato Unified School
District
(31%)
Novato Fire
District
(14.5%)
College of
Marin
(6.6%)
City of
Novato
(7.0%)
Other
(10.1%)
State of
CA
(ERAF)
(14.8%)
County of
Marin
(16%)
10 REGIONAL SALES TAX RATES
City Sales Tax Rate
Petaluma 9.50%
San Rafael 9.25%
Santa Rosa 9.25%
Rohnert Park 9.00%
Corte Madera 9.00%
Larkspur 9.00%
Fairfax 9.00%
Sausalito 8.75%
San Anselmo 8.75%
Novato 8.50%
Rates effective 1/1/2022
11 4 Marin County
Cities at 8.25%
• Mill Valley
• Belvedere
• Ross
• Tiburon
SALES TAX RATE = 8.50%
12 Novato Sales Tax
6.25% State of CA
1.00% State of CA Uniform Local Tax (Novato’s Share)
0.25% Marin County Parks, Open Space, Farmland Preservation (2022)
0.50% Marin County Transportation Authority (Prior Measure A)
0.25% Sonoma-Marin Area Rail Transit “SMART” (Measure Q)
0.25% Novato Local Sales Tax (Measure C –Voter Approved 2015)
8.50% TOTAL
Novato
Local Share =
1.25%
FY22/23 GENERAL FUND BUDGET
EXPENSE = $49.1M
Salaries & Benefits,
$32.80 , 67%
Professional
Srvcs, $3.30 , 7%
Operating Exp,
$7.70 , 16%
Utilities, $1.30 , 2%
Other Expense,
$1.60 , 3%
Transfers Out,
$2.40 , 5%
Expense
$49.1 (in Millions) City Services
- Provided through
People
- Personnel Costs
$32.8 M
- Comprises 67% of
Budget
13 PERSONNEL
4 YEAR HISTORY
14 Personnel Allocation
4 Year History
Amended
FY 2019/20
Amended
FY 2020/21
Amended
FY 2021/22
Amended
FY 2022/23
TOTAL
208.50 188.50 191.50 195.50
September 2020
Eliminated 17 Positions
Reduced FTE 8.28%
CITY OF NOVATO
CAPITAL IMPROVEMENT PROGRAM
15 CAPITAL IMPROVEMENT PROGRAM (CIP) OVERVIEW
16 Five-year capital improvement planning tool
Projects & funding updated annually through city budget process Identifies & prioritizes projects based on:
Regulatory mandates
General Plan & Strategic Plan initiatives
City Council and community input
Assessment reports and transition plans
Capital revenue limitations
23/24 PROGRAM OBJECTIVES & GOALS
17 Closeout completed projects & re-program any remaining funding to ongoing or new projects
Minimize the number of fund sources per project to simplify accounting Combine projects with similar scope to achieve economies of scale and reduce administrative costs
Maintain updated CIP on City website
23/24 CIP PROJECT DELIVERY GOALS
18 Construct new crosswalks and traffic calming measures at various locations
Complete the Pioneer Park Play Structure Replacement project Construct improvements such as pour and play surfacing at several playgrounds
Begin construction on the Grant Avenue Bridge Widening project Install new SCADA system at the Hamilton pump stations Construct MVMCC Sewer Pump Station #1 Project
MAJOR CAPITAL PROJECT UPDATES
19 Novato Blvd. Widening – Right-of-Way acquisition in progress Olive Ave. Widening – Updating drainage design & obtaining env. permits DeLong/Diablo Corridor Project – Construction pending Caltrans approval Rowland Blvd. Improvements – Completed & closeout in progress
CAPITAL FUNDING SOURCES BY CATEGORY
STREETS & PATHWAYS
TAM Measure AA
Gas Excise Tax (HUTA)
SB1 Gas Tax (RMRA)
Vehicle Registration Fees
Developer Fees – Streets
Federal, State & Regional
Grants
Utility Work Credits 20
PARK & REC. FACILITIES
“Quimby” Subdivision Fees
County Parks Measure A
Developer Fees – Recreation
Long-Term Maintenance
(General Fund)
Federal, State & Regional
Grants
MUNICIPAL BUILDINGS
Long-Term Maintenance
(General Fund)
PRELIMINARY 23/24 CAPITAL REVENUE ESTIMATES
HUTA Gas Taxes……………………………………$1,520,000
SB1 RMRA Gas Taxes…………………………….....$1,310,000
TAM Measure AA Transportation Sales Tax………...$1,234,000 Long-Term Maintenance (Gen’l Fund) pending draft 23/24 City Budget County Parks Measure A Sales Tax pending completion of Parks Master Plan Sources: CaliforniaCityFinance.com, Transportation Authority of Marin 21 CIP GRANT FUNDING
Novato Blvd. Widening – $10M TAM Major Streets Program Grant Ave. Bridge Widening – $3.5M FHWA Highway Bridge Program DeLong/Diablo Corridor Project – $1.1M FHWA Highway Safety Imp. Program Pavement Resurfacing Project – Pending $5M FHWA RAISE Grant Application 22 OTHER MAJOR CAPITAL FUNDING NEEDS
Lynwood Slough/Sunset Parkway Storm Drain Replacement ~$3,000,000 Bahia Drive Storm Drain System Upgrades ~$1,000,000
Margaret Todd Senior Center/Hill Gym Painting & Roof Replacement ~$750,000 Accessibility Upgrades at San Marin Dr./San Andreas Dr. ~$500,000 Gymnastics Center Roof Replacement ~$400,000
23 NEXT STEPS
24 Participate in the Budget Process!
April Public Meetings:
• Community Budget Workshop – Tonight
• Finance Advisory Commission – April 6th
• City Council Study Session – April 11th
Questions?
25