COMMUNITY BUDGET WORKSHOP
MARCH 26, 2026
1 WELCOME
2 Community Engagement – Residents help
shape priorities
Budget Transparency – Review revenue
and spending
City Services – How funding supports
Novato
Thank you for joining us. Your participation helps ensure Novato’s budget reflects community values and priorities.
AGENDA 3 • Welcome • Budget Development Process • Revenue Overview • General Fund Forecast • Operating Budget • Capital Improvement Program • Next Steps • Question & Answer Session Budget Development
4 COMMUNITY INPUT IS CRITICAL!
Community
Specific
Engagement
Survey
February 9-15
Priorities Survey
March 9-23
Community
Workshop
March 26
Budget Pop-ups
April 2 & April 4
Budget
Development
April 14
Operating
April 28 CIP
May 12
Budget
Hearing
June 09
Budget
Adoption
June 23
5 Commission /
Committee Review
• Planning Commission
• Finance Advisory
Commission
• Complete Streets and
Pathways Oversight
Committee (CSPOC)
BUDGET PRIORITIES SURVEY
More information: www.novato.org/community/get-involved/open-novato 6 Survey Deadline:
March 23rd
PREVIEW OF COMMUNITY PRIORITIES SURVEY RESULTS
7 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. City Facilities & Property Maintenance
9. Sustainability; Environmental Efforts
10. Residential & Commercial Permitting
COMMUNITY OUTREACH - BUDGET PRIORITIES SURVEY
8 News release:
emailed to 13,371
subscribers
Facebook:
6,941 followers
Instagram: 3,963
followers
X, formerly known
as Twitter: 2,486
followers
Nextdoor: 44,059
members
Open Novato
(survey platform):
2,544 subscribers
Novato in the Know
(Online Community
Forum): 13,714
members
March Newsletter:
21,860 subscribers
STRATEGIC PLAN
More information: www.novato.org/government/city-council/strategic-plan 9 Strategic Plan 2023-25
• Living Well, Together
• Great Places
• Environmental Stewardship
• A City that Works
• Economic Vitality
• Finish remaining work items from prior strategic plan • Develop New Strategic Plan
• Council Meeting April 17th
• Community Participation encouraged!
CITY OF NOVATO
REVENUE SOURCES
10 OPERATING BUDGET VERSUS CAPITAL BUDGET – REVENUES
CIP Revenue Sources
(Gas Tax, Parks
Measure A)
Capital Improvement
Program (Restricted)
Capital Projects
(Streets, Facilities,
Parks)
11 General Fund Revenue
(Property Tax, Sales Tax,
TOT, Business Licenses)
General Fund
(Unrestricted)
City Services and
Operations
Different Purposes Different Uses
MAJOR REVENUES THAT FUND THE OPERATING BUDGET
12 Property Tax
Sales Tax
Transient Occupancy Tax
Permits and Program Fees
(i.e. Building and Parks)
Business License Fees
PROPERTY TAX SHARE FOR MARIN COUNTY CITIES
13 LOCALLY CONTROLLED SALES TAX = 2%
14 Of the 9.25%
sales tax collected in Novato,
2% returns to the
City of Novato.
City of Novato
2%
State of CA
3.9%
County of Marin
2.5%
Transportation
Authority of
Marin
0.5%
Sonoma-Marin Rail Transit
0.25%
2% LOCALLY CONTROLLED TAX BREAKDOWN
15 Component Rate Control
Bradley-Burns 1.00% State law (baseline local share)
Measure C 0.25% Voter-approved (Novato)
Measure M 0.75% Voter-approved (Novato)
Total Local (Novato) 2.00% Combined
CITY OF NOVATO
FIVE YEAR GENERAL FUND FORECAST & MEASURE M
EASURE16
GENERAL FUND FORECAST WITH MEASURE M – OPERATING
BUDGET
17 $291,659
($1.2M)
($2.1M)
($2.4M)
($2,750,000)
($2,250,000)
($1,750,000)
($1,250,000)
($750,000)
($250,000)
$250,000
$750,000
FY 2021-22
Actual
FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Actual
FY 2025-26
Adopted
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000 ANNUAL SURPLUS / (DEFICIT) ANNUAL REVENUES / EXPENDITURES General Fund Revenues General Fund Expenditures Surplus / (Deficit) Balanced Budgets -
Surplus 0
GENERAL FUND FORECAST WITHOUT MEASURE M
18 $291,659
($1.2M)
($2.1M)
($2.4M)
($5.2M)
($8.3M)
($9.0M)
($9.4M)
($9.1M)
($10,000,000)
($8,000,000)
($6,000,000)
($4,000,000)
($2,000,000)
$0
FY 2021-22
Actual
FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Actual
FY 2025-26
Adopted
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000 ANNUAL SURPLUS / (DEFICIT) ANNUAL REVENUES / EXPENDITURES General Fund Revenues General Fund Expenditures Surplus / (Deficit)
MEASURE M FORECAST
19 $2.1M
$9.9M $10.1M $10.4M $10.6M $10.7M
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
FY 2021-22
Actual
FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Actual
FY 2025-26
Estimated*
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast DISCRETIONARY REVENUES / PERSONNEL COSTS
General Fund 2025-26 Base Gen. Fund - 2025-26 Salary / Benefits Adj.
Gen. Fund - 2026-27 Salary / Benefits Adj. Gen. Fund - 2027-28 Salary / Benefits Adj.
Measure M - Available for Other Purposes
HOW HAS MEASURE M BEEN SPENT?
(IN MILLIONS)
FY2025/26
Amended
Budget
FY2024/25
Actuals
FY2024/25
Amended
Budget
Allocation
Replenish Emergency Reserve $1.2 $0.9 - Replenish Self Insurance Reserve $1.2 $1.2 - Public Works Maint (Streets/Weed Abatement) $0.2 $0.2 - Deficit Backfill - - $4.0 Restored Resources - - $1.1
Personnel Costs - - $1.7
Deferred Maintenance - - $0.5
Managing Financial Liabilities - - $0.4
Innovation and Investment - - $0.3
Capital Projects - - $1.9
Total $2.6 $2.3 $9.9 20
CITY OF NOVATO
OPERATING BUDGET
21 FY25/26 GENERAL FUND SUMMARY
22 General Fund
Budget Summary
Amended
FY2025/26
Adopted
FY 2025/26
Revenue $ 57.7 M $61.5 M
Expense 57.7 M 61.5 M
- - Surplus/(Deficit)
Inclusive of Transfers In/Out
FY25/26 GENERAL FUND ADOPTED BUDGET
REVENUE = $57.73 M
23 Property Tax, $20.14, 35%
Sales Tax, $16.59, 29%
Other Taxes,
$5.24, 9%
Charges for
Srvcs, Lic,
Permits, $6.06,
11%
Grants, Fines,
Intergovernmental,
Other, $2.00, 3%
Transfer In, Other
Financing Sources, $7.70,
Revenue
(in Millions) Top 2
Revenue
Sources = 64%
• Property
Tax
• Sales Tax
FY25/26 GENERAL FUND BUDGET
EXPENSE = $57.73M
24 Salaries &
Benefits,
$39.33 , 68%
Professional
Srvcs, $5.83 ,
10%
Operating Exp, $6.33 , 11%
Utilities, $1.67 , 3%
Other Expense, $2.16 , 4% Transfers Out, $2.41 , 4%
Expense
(in Millions) City Services
• Provided
through People
• Personnel
Costs $39.33M
• Comprises 68%
of Budget
PERSONNEL
5 YEAR HISTORY
25 Personnel Allocation
5-Year History
Amended
FY2025/26
Amended
FY2024/25
Amended
FY 23/24
Amended
FY 22/23
Amended
FY 21/22
190.50 195.50 197.00 199.00 203.50
TOTAL
Slowly rebuilt workforce
after pandemic
Public Works
Support
Enhanced
Police retention
Economic Development
Expansion
PERSONNEL
20-YEAR HISTORY
26 225.63
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
203.50
150
160
170
180
190
200
210
220
230
240
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 2025/26 Personnel Allocation
Measure F Measure M
CITY OF NOVATO
CAPITAL IMPROVEMENT PROGRAM
27 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
Staff capacity
Regulatory mandates
Assessment reports
Criticality & consequence of failure
General plan & strategic plan initiatives
Community, City Council, and City staff member
stakeholder input
28 26/27 PROGRAM OBJECTIVES & GOALS
Prudent fiscal responsibility and management
Initiate new projects where there is significant impact and needs (e.g. parks improvements & accessibility, pavement projects to maintain road quality, and building systems such as HVAC) Align project management load with Public Works staff capacity Consolidate related projects into more comprehensive projects Closeout all completed projects & re-program any remaining funding Defund planned projects that are not being worked on to use funds efficiently Minimize number of fund sources per project to simplify accounting 29 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)
30 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)
Developer Fees – Civic
Facilities, Public Safety,
Government Systems
CAPITAL REVENUE ESTIMATES FY26/27-30/31 (IN MILLIONS)
31 FY30/31
Forecast
Revenue
FY 29/30
Forecast
Revenue
FY 28/29
Forecast
Revenue
FY 27/28
Forecast
Revenue
FY 26/27
Estimated
Revenue
Primary CIP Fund Sources
$0.6 $0.6 $0.6 $0.6 $0.6 Long Term Maintenance
(General Fund Set Asides for Facilities and Infra.)
Gas Tax Highway Use Tax Act (HUTA) $0.1 $0.1 $0.1 $0.1 $0.1 *minus general fund transfers to Maintenance
$1.5 $1.4 $1.3 $1.3 $1.2 Gas Tax Road Maintenance and
Rehabilitation (SB1 RMRA)
TAM Measure AA $2.3 $1.2 $1.2 $1.2 $1.2
$0.5 - - $0.7 - TAM Measure B (Veh Reg Fees)
(Distributed every 5 years)
Measure M $1.3 $0.8 $0.8 $0.8 $0.8
Parks Measure A $0.5 $0.5 $0.5 $0.5 $0.5
Totals $6.8 $4.6 $4.5 $5.2 $4.4
ONGOING PROJECT - NOVATO BLVD IMPROVEMENTS DIABLO –
GRANT & RULE 20A (CIP 01-004) Novato Blvd. Improvement Project Design 100% complete, PG&E's undergrounding project expected to complete this summer Partnering with NSD and NMWD for joint project management and
scheduling – Summer 2026-27.
32 ONGOING PROJECT – HAMILTON AMPHITHEATER PARK PLAYGROUND IMPROVEMENTS (CIP 26-004)
33 ONGOING PROJECT – OLIVE PHASE III (REDWOOD TO RAILROAD) & RULE 20B UUD (CIP 97-001)
34 ONGOING PROJECT – SCOTT HOUSE RENOVATIONS (CIP 26-017) 35 ONGOING PROJECT – POLICE STATION HVAC REPLACEMENT
(CIP 26-006)
36 Currently In Design Phase
Contract issued
Design recommendations ASHRAE Level II Energy Audit PG&E On-Bill Financing Coordination
ANNUAL PAVEMENT REHABILITATION PROJECT
37 25-001 26-001
CIP GRANT FUNDING
Novato Blvd. Widening – $10.3M TAM Major Streets Program SP2S - Sutro Ave Sidewalk Gap Closure - $450,000 TAM AA SP2S – Quick Build Improvements at Various Intersections - $175,000 TAM AA Novato Historical Guild - Donation for Scott House - $3.2M Potential Funding:
California Transportation Commission - Active Transportation Program – Redwood Blvd Sidewalk Gap Closures – Exploring partnership with TAM to apply for approximately $1.5 million 38 TRANSPORTATION, DRAINAGE, AND UNDERGROUNDING
2027 Annual Pavement Rehabilitation Project - $2.6M
Novato Blvd Widening - $13.1M
Olive Ave Widening - $2.1M
San Marin Corridor Improvements - $350,000
Replace Wooden Streetlight Poles - $250,000
Storm Drainpipe Replacement - $50,000
Traffic, Bike, & Ped Improvements - $200,000
Pedestrian Safety Project - $250,000
39 PARKS, RECREATION, & COMMUNITY SERVICES
Hamilton Community Pool – Play
Structure Replacement - $175,000
Downtown Rec Center Turf - $50,000
Marin Highlands Park - $300,000
Marion Park $200,000
Miwok Park Fencing Phase 2 - $150,000
40 MUNICIPAL BUILDINGS
Scott House Renovations - $3.2M
DRC & Gymnastics Center HVAC
Replacement - $500,000
Rooftop Solar Module
Replacement - $50,000
41 NEXT STEPS
42 Participate in the Budget Process!
April Public Meetings: • Community Budget Workshop – Tonight • Finance Advisory Commission – April 2nd • City Council Study Sessions • April 14th – Operating Budget • April 28th – Capital Improvement Program
Questions?
43