COMMUNITY BUDGET WORKSHOP
MARCH 28, 2024 1
AGENDA
2 • Welcome • Budget Development Process • Fiscal Outlook • Operating Budget • Capital Improvement Program • Question & Answer Session • Next Steps BUDGET DEVELOPMENT PROCESS – PUBLIC INPUT
City Council
Budget Development Study
Session
April 9th
City Council
Budget Workshop
May 14th
City Council
Budget Hearing
June 11th
City Council
Budget Adoption
June 25th
3 Your input is
critical -
The budget should
reflect the
community’s
priorities.
Contact us: [email protected]
BUDGET PRIORITIES SURVEY OPEN
4 More information: www.novato.org/community/get-involved/open-novato Survey Deadline:
April 1st
STRATEGIC PLAN 2023 - 2025
5 More information: www.novato.org/government/city-council/strategic-plan • Living Well,
Together
• Great Places
• Environmental
Stewardship
• A City that Works
• Economic Vitality
CITY OF NOVATO
FISCAL OUTLOOK & REVENUE SOURCES
6 PROPERTY TAX SHARE FOR MARIN COUNTY CITIES
7 PROPERTY TAX - PROPORTIONAL SHARE
8 LOCALLY CONTROLLED SALES TAX = 1.25%
9 Of the 8.5%
sales tax
collected in Novato,
only 1.25% returns
to the
City of Novato.
REGIONAL SALES TAX RATES
City Sales Tax Rate
Petaluma 9.50%
San Rafael 9.25%
Santa Rosa 9.25%
Larkspur 9.25%
Sausalito 9.25%
San Anselmo 9.25%
Fairfax 9.00%
Rohnert Park 9.00%
Corte Madera 9.00%
Novato 8.50%
Rates effective 1/1/2024
10 4 Marin County
Cities @ 8.25%
• Mill Valley
• Belvedere
• Ross
• Tiburon
ONGOING STRUCTURAL DEFICIT
11 ENHANCING LOCALLY CONTROLLED REVENUE –
PRESERVING WHAT WE HAVE
12 New Sales Tax would generate approximately $10M to:
• Fix potholes and maintain city streets
• Maintain 9-1-1 emergency response
• Reduce the risk of wildfire
• Maintain parks and recreation programs & facilities
CITY OF NOVATO
OPERATING BUDGET
13 FY23/24 GENERAL FUND SUMMARY
14 General Fund
Budget Summary
Adopted
FY 2023/24
Amended
FY2023/24
Revenue $ 47.9 M $49.6 M
Expense - $ 49.2 M - $53.0 M
Surplus/(Deficit) - $ 1.3 M -$3.3 M
Inclusive of Transfers In/Out
FY23/24
Amended Budget
Deficit = $3.3 M
FY23/24 GENERAL FUND BUDGET
REVENUE = $49.6 M
15 Property Tax,
$19.17, 38%
Sales Tax, $16.20,
32%
Other Taxes,
$4.99, 10%
Charges for
Srvcs, Lic,
Permits, $4.49,
9%
Grants, Fines,
$1.89, 3% One-Time Funds,
$1.10, 2% Transfer In,
$2.94, 6%
Revenue
$49.6 (in Millions)
Top 2
Revenue Sources = 69.6%
• Property Tax
• Sales Tax
FY23/24 GENERAL FUND BUDGET
EXPENSE = $53.01M
Salaries &
Benefits,
$35.14 , 66%
Professional
Srvcs, $6.33 ,
12%
Operating Exp,
$6.54 , 13%
Utilities, $1.48 , 3%
Other Expense,
$1.20 , 2%
Transfers Out,
$2.30 , 4%
Expense
(in Millions)
16 City Services
• Provided through
People
• Personnel Costs
$35M
• Comprises 66%
of Budget
PERSONNEL
5 YEAR HISTORY
17 Personnel Allocation
5 Year History
Amended
FY 19/20
Amended
FY 20/21
Amended
FY 21/22
Amended
FY 22/23
Amended
FY2023/24
TOTAL
208.50 188.50 191.50 195.50 197.00
September 2020
Eliminated 17
Positions
Reduced FTE
+8%
PERSONNEL
20-YEAR HISTORY
18 234.00
211.50
224.00
214.63
225.63
232.23
228.18
213.18
194.19
182.27
186.10 186.90
193.90
194.05
203.25
208.50 208.67 208.50
202.50
190.50 195.50
197.00
150.00
160.00
170.00
180.00
190.00
200.00
210.00
220.00
230.00
240.00 Personnel Allocation
CITY OF NOVATO
CAPITAL IMPROVEMENT PROGRAM
19 CAPITAL IMPROVEMENT PROGRAM (CIP) OVERVIEW
▪ Five-year capital improvement planning tool
▪ Projects & funding/revenues updated annually
through budget process
▪ Identify & prioritize projects based on:
▪ Limited funding and revenue restrictions
▪ Regulatory mandates
▪ General plan & strategic plan initiatives
▪ City Council and community input
▪ City departments' input
▪ Assessment reports and transition plans
20 24/25 PROGRAM OBJECTIVES & GOALS
▪ Prudent fiscal responsibility and management
▪ Initiate new projects where there is significant impact and needs (e.g. parks improvements & accessibility, streetlight replacements, pavement projects to stabilize our pavement condition)
▪ Closeout all completed projects & re-program any remaining funding ▪ Minimize number of fund sources per project to simplify accounting ▪ Reconcile special revenue sources (e.g. DIF varieties, Gas Tax) 21 PIONEER PARK PLAY AREA UPGRADES
(CIP 22-004)
22 CITYWIDE PLAYGROUND IMPROVEMENTS
(CIP 22-006)
23 Citywide Playground
Improvements at Bahia Oak
Park, Olive Tot Lot, South
Hamilton Park, and Miwok
Park (Bahia Oak Park shown)
ANNUAL PAVEMENT REHABILITATION AND
CROSSWALK ENHANCEMENT PROJECTS
(CIP 22-005, 23-001, 24-001)
24 GRANT AVENUE BRIDGE
(CIP 09-003)
25 Location Map
DELONG-DIABLO AVE. CORRIDOR SAFETY ENHANCEMENTS
(CIP 22-003)
26 ONGOING PROJECT – NOVATO BLVD WIDENING
(CIP 01-004)
▪ Novato Blvd. Improvement Project –
▪ ROW Acquisitions 80% complete,
▪ Design 85% complete,
▪ PG&E's undergrounding project has
significant delays due to CPUC issue,
▪ Construction anticipated 2025-2027
27 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 (Rule
20A)
28 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)
CAPITAL REVENUE ESTIMATES FY24/25-28/29
29 Primary CIP Fund Sources
FY 23/24
Projected
Revenue
FY 24-25
Estimated
Revenue
25-26
Forecast
Revenue
FY 26-27
Forecast
Revenue
FY 27-28
Forecast
Revenue
FY 28-29
Forecast
Revenue
Long Term Maintenance
(General Fund Set Asides for Facilities and Infra.)
$ 650,000 TBD TBD TBD TBD TBD
Gas Tax Highway Use Tax Act
(HUTA) (Minus Transfers to GF Maintenance)
$ 947,137 $ 720,710 $ 699,089 $ 678,116 $ 657,773 $ 638,039 Gas Tax Road Maintenance and
Rehabilitation (SB1 RMRA)
(Minus Transfers to GF Maintenance)
$ 772,260 $ 659,978 $ 640,179 $ 620,973 $ 602,344 $ 584,274 TAM Measure AA $ 1,234,021 $ 1,200,650 $ 1,140,618 $ 1,083,587 $ 1,029,407 $ 977,937 TAM Measure AA (Major Streets) $ 4,500,000 $ 4,500,000
TAM Measure B (Veh Reg Fees)
(Distributed every 5 years)
$ 671,481 - - - - $ 671,000
Parks Measure A
(Transfers to O&M for utilities)
$ 486,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 Totals $ 9,260,899 $ 2,981,338 $ 2,879,886 $ 7,282,676 $ 2,689,524 $ 3,271,250
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 30 No New Grants for FY 24-25
DRAFT PROPOSED NEW PROJECTS
31 CIP Project ID Project Name Fund Source(s) FY 24-25
Proposed Budget
25-001 2025 Annual Pavement Rehabilitation 229 - Gas Tax HUTA $ 940,000 229.105 - Gas Tax RMRA $ 684,260
236.600 -TAM Measure AA $ 120,740
25-002
2025 Annual Traffic Striping and
Marking 229 - Gas Tax HUTA $ 75,000
23-003 Replace Wooden Streetlight Poles 119-LTM Infrastructure $ 250,000 25-003
Parks Master Plan Near-Term
Accessibility Improvements – Phase 1
214 - Quimby In-Lieu Fees
$ 47,537
Total $ 2,117,537
ANNUAL PAVEMENT REHABILITATION PAVING PROJECT
(CIP 25-001)
▪ Work to be accomplished in CIP 25-001:
▪ Pavement Rehabilitation (scrub seal and micro-surfacing) ▪ Construction of accessible curb ramps
▪ Curb, gutter and sidewalk replacements
▪ Asphalt concrete dig-out and patches
▪ Replacement of pavement striping and markings;
▪ Installation of new traffic signs
▪ Draft funding proposed for CIP 25-001:
▪ $ 940,000 Gas Tax HUTA
▪ $ 684,260 Gas Tax RMRA
▪ $ 120,740 TAM Measure AA
▪ $1,745,000 Total
32 PARK MASTER PLAN NEAR-TERM ACCESSIBILITY IMPROVEMENTS PHASE 1 (CIP 25-003)
33 The 2024 Park Master Plan (PMP) has
identified various deficiencies related to
accessibility that would be addressed
over multiple years, starting with CIP 25-
003. This project consists of ADA
accessibility improvements at 12
separate park locations throughout the
City based on the PMP.
NEXT STEPS
34 Participate in the Budget Process!
April Public Meetings:
• Community Budget Workshop – Tonight
• Finance Advisory Commission – April 5th
• City Council Study Session – April 9th
Questions? 35