COMMUNITY BUDGET WORKSHOP
MARCH 27, 2025
1 AGENDA
2 • Welcome • Revenue Sources Overview • General Fund Forecast • Budget Development Process • Operating Budget • Capital Improvement Program • Question & Answer Session • Next Steps
PROPERTY TAX - PROPORTIONAL SHARE
3 PROPERTY TAX SHARE FOR MARIN COUNTY CITIES
4 REGIONAL SALES TAX RATES
City Sales Tax Rate
Petaluma 10.25%
San Rafael 9.25%
Santa Rosa 10.00%
Rohnert Park 9.75%
Corte Madera 9.00%
Larkspur 9.25%
Fairfax 9.00%
Sausalito 9.25%
San Anselmo 9.25%
Novato 9.25%
Mill Valley 9.25%
Rates effective 04/1/2025 5
3 Marin County
Cities at 8.25%
• Belvedere
• Ross
• Tiburon
LOCALLY CONTROLLED SALES TAX = 2%
6 Of the 9.25%
sales tax collected
in Novato,
2% returns to the
City of Novato.
City of Novato
1.25%
City of Novato
Measure M
0.75%
State of CA
3.9%
County of Marin
2.5%
Sonoma-Marin Rail
Transit
0.25%
Transportation Authority of Marin 0.50%
GENERAL FUND FORECAST WITHOUT MEASURE M
7 GENERAL FUND FORECAST WITH MEASURE M
8 MEASURE M FORECAST FY 2025/26
9 $3.8M, 36%
$6.8M, 64%
Projected Funding from Measure M
FY2025/26 ~ $10.6M
Covers Systemic Deficit
Available for Capital Projects, Pension Trust, Reserves, and Salaries BUDGET DEVELOPMENT PROCESS – PUBLIC INPUT
10 City Council
Budget Development Study
Session
April 8th
City Council
Budget Workshop
May 13th
City Council
Budget Hearing
June 10th
City Council
Budget Adoption
June 24th
Your input is
critical -
The budget should
reflect the
community’s
priorities.
BUDGET PRIORITIES SURVEY
More information: www.novato.org/community/get 11 -involved/open-novato Survey Deadline:
March 31st
COMMUNITY OUTREACH - BUDGET PRIORITIES SURVEY
12 News release:
emailed to 9,380
subscribers
Facebook:
6,684 followers
Instagram: 3,357
followers
X, formerly known
as Twitter: 2,499
followers
Nextdoor: 41,283
members
Open Novato
(survey platform):
2,093 subscribers
Novato in the Know
(Online Community
Forum): 13,848
members
March Newsletter:
21,682 subscribers
PREVIEW OF COMMUNITY PRIORITIES SURVEY RESULTS
13 1. Public Safety; Emergency Response
Services
2. Streets & Medians Maintenance
3. Business Retention & Attraction
4. Downtown Revitalization
5. Addressing Homelessness & Mental
Health
6. Youth, Adult & Other Recreation Programs
7. Beautification of Parks
8. Sustainability; Environmental Efforts
9. City Facilities & Property Maintenance
10.Residential & Commercial Permitting
STRATEGIC PLAN 2023 - 2025
More information: www.novato.org/government/city-council/strategic-plan 14 • Living Well, Together
• Great Places
• Environmental
Stewardship
• A City that Works
• Economic Vitality
CITY OF NOVATO
OPERATING BUDGET
15 FY 2024/25 GENERAL FUND SUMMARY
16 General Fund
Budget Summary
Adopted
FY 2024/25
Amended
FY2024/25
Revenue $ 50.3 M $56.3 M
Expense 54.5 M 59.8 M
Surplus/(Deficit) - $ 4.2 M -$3.5 M
Inclusive of Transfers In/Out
FY24/25
Amended Budget
Deficit = $3.5 M
FY 2024/25 GENERAL FUND BUDGET
REVENUE = $56.3 M
17 Property Tax,
$19.88, 35%
Sales Tax, $18.92,
34%
Other Taxes,
$5.03, 9%
Charges for
Srvcs, Lic,
Permits, $5.67,
10%
Grants, Fines,
Intergovernmental,
Other, $2.30, 4% Transfer In, Other
Financing Sources, $4.46,
Revenue
$56.3 (in Millions)
Top 2
Revenue Sources = 69%
• Property Tax
• Sales Tax – with
Measure M mid year
adjustment
FY 2024/25 GENERAL FUND BUDGET
EXPENSE = $59.88M
18 Salaries &
Benefits,
$37.47 , 62%
Professional
Srvcs, $8.52 ,
14%
Operating Exp,
$5.85 , 10%
Utilities, $1.61 , 3%
Other Expense,
$1.72 , 3%
Transfers Out,
$4.71 , 8%
Expense
(in Millions)
City Services
• Provided
through People
• Personnel Costs
$37.47M
• Comprises 62%
of Budget
PERSONNEL
6 YEAR HISTORY
19 Personnel Allocation
6 Year History
Amended
FY 19/20
Amended
FY 20/21
Amended
FY 21/22
Amended
FY 22/23
Amended
FY 23/24
Amended
FY 24/25
TOTAL
208.50 188.50 192.50 195.50 197.00 198.00
September 2020
Eliminated 17
Positions
Reduced FTE 8%
PERSONNEL
20+YEAR HISTORY
20 234.00
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
198.00
150.00
160.00
170.00
180.00
190.00
200.00
210.00
220.00
230.00
240.00
2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 Personnel Allocation
Below 200 FTE
since 2020
Currently at
198
CITY OF NOVATO
CAPITAL IMPROVEMENT PROGRAM
21 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
22 FY 2025/26
PROGRAM OBJECTIVES & GOALS
Prudent fiscal responsibility and management
Initiate new projects where there is significant impact and need e.g. parks improvements & accessibility, streetlight and light pole replacements, pavement projects to maintain road quality, and building systems such as HVAC Closeout all completed projects & re-program any remaining funds Minimize number of fund sources per project to simplify accounting Reconcile special revenue sources (e.g. DIF varieties, Gas Tax) 23 GRANT AVENUE BRIDGE
(CIP 09-003)
24 DELONG-DIABLO AVE CORRIDOR SAFETY ENHANCEMENTS
(CIP 22-003)
25 ANNUAL PAVEMENT REHABILITATION PAVING PROJECT
24 26 -001
25-001
ONGOING PROJECT –
NOVATO BLVD WIDENING (CIP 01-004)
Novato Blvd. Improvement Project
ROW Acquisitions 80% complete,
Design 90% complete,
PG&E's undergrounding project
expected to begin May 2025
Partnering with NMWD and NSD
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 FY 2025/26-2029/30
29 Primary CIP Fund Sources
FY 2025/26
Estimated
Revenue
FY 2026/27
Forecast
Revenue
FY 2027/28
Forecast
Revenue
FY 2028/29
Forecast
Revenue
FY 2029/30
Forecast
Revenue
Long Term Maintenance
(General Fund Set Asides for Facilities and Infra.) $640,000 TBD TBD TBD TBD Gas Tax Highway Use Tax Act (HUTA)
*minus general fund transfers to Maintenance $7,844* $1,462,609 $1,418,731 $1,376,169 $1,334,884 Gas Tax Road Maintenance and
Rehabilitation (SB1 RMRA) $1,394,905 $1,353,058 $1,312,466 $1,273,092 $1,234,899 TAM Measure AA $1,116,250 $1,060,438 $1,007,416 $957,045 $928,334 TAM Measure B (Veh Reg Fees)
(Distributed every 5 years) - - - $671,000 -
Measure M $1,880,000 TBD TBD TBD TBD
Parks Measure A $523,875 $523,875 $523,875 $523,875 $523,875 Totals $5,562,874 $4,399,980 $4,262,488 $4,801,181 $4,021,992
CIP GRANT FUNDING
Novato Blvd. Widening – $10.3M TAM Major Streets Program Potential Funding:
SP2S - Sutro Ave Sidewalk Gap Closure - $450,000 TAM AA SP2S – Quick Build Improvements at Various Intersections - $175,000 TAM AA 30 DRAFT
NEW FUNDING FOR CARRYOVER PROJECTS
31 CIP Project ID Project Name
FY 2025/26
Proposed Budget
16-011 North Redwood Blvd Corridor Study $366,000
17-002 Accessibility Enhancements - Municipal Buildings 50,000 17-003 Accessibility Enhancements - Parks 50,000
18-003 MTC Pavement Management Phase IV 30,000
18-008 Municipal Buildings Deferred Maintenance 50,000
23-003 Replace Wooden Streetlight Poles 400,000
23-006 Accessibility Upgrades – San Marin Dr. at San Andreas Dr. 550,000 24-002 2023-2028 Traffic, Bicycle, & Ped Improvements 120,000 24-003 MS4 Permit Trash Capture Devices 811,250
24-005 Ammo Hill Building Demolition 150,000
97-001 Olive Phase III (Redwood to Railroad) & Rule 20B UUD 200,000 TOTAL $2,777,250
DRAFT
PROPOSED NEW PROJECTS
32 CIP Project ID Project Name
FY 2025/26
Proposed Budget
26-xxx 2026 Annual Pavement Rehabilitation $3,000,000
922 Machin Workspace Reconfiguration 100,000
Annual Traffic Striping and Marking 75,000
ERP Financial System- Study 75,000
Hamilton Amphitheater Park Playground Improvements 700,000 Hamilton comm Gym 50,000
HVAC - Hill Community Room 125,000
HVAC – MTSC 240,000
HVAC Replacement - Police Station 700,000
Miwok Park Fencing Phase 2 100,000
MTSC Exterior Siding 50,000
Parks Master Plan Accessibility Project - Ph2 120,000
PD Water infiltration 200,000
Security Hardware Refresh 100,000
SP2S – Quick Build Improvements at Various Intersections 228,000 SP2S - Sutro Ave Sidewalk Gap Closure 590,000
$6,453,000
MUNICIPAL BUILDINGS
MTSC Exterior Siding Replacement - $50,000
922 Machin Workspace Reconfiguration - $100,000
Hamilton Community Gym Modernization - $50,000
HVAC Replacements (Hill Community Room, MTSC,
PD) - $1,065,000
PD Water Infiltration - $200,000
Accessibility Enhancements – Municipal Buildings -
$50,000
Municipal Buildings Deferred Maintenance - $50,000
Ammo Hill Building Demolition - $150,000
33 TRANSPORTATION, DRAINAGE, AND UNDERGROUNDING
2026 Annual Pavement Rehabilitation Project - $3M
Annual Traffic Striping and Marking - $75,000
SP2S – quick Build Improvements - $228,000
SP2S – Sutro Ave Sidewalk Gap Closure - $590,000
North Redwood Blvd Corridor Study - $366,000
MTC Pavement Management - $30,000
Replace Wooden Streetlight Poles - $400,000
Accessibility Upgrades – San Marin at San Andreas - $550,000 Traffic, Bike, & Ped Improvements - $120,000
MS4 Trash Capture Device - $811,250
Olive Ave Widening- $200,000
34 PARKS, RECREATION & COMMUNITY SERVICES
Hamilton Amphitheater Park Playground
Improvements - $700,000
Miwok Park Fencing Phase 2 - $100,000
Parks Master Plan Accessibility Project Phase 2 -
$120,000
Accessibility Enhancements – Parks - $50,000
35 NEXT STEPS
36 Participate in the Budget Process!
Public Meetings: • Finance Advisory Commission meetings –
1stThursday of the month
• City Council Study Session – April 8th
• City Council Workshop – May 13th
• City Council Budget Hearing – June 10th
• City Council Budget Adoption – June 24th
Questions?
37