Agenda packet — San Rafael City Council, May 19, 2025

AGENDA
SAN RAFAEL CITY COUNCIL - MONDAY, MAY 19, 2025
REGULAR MEETING AT 6:00 P.M.

San Rafael City Hall, Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Watch Online:

Watch on Zoom Webinar: https://tinyurl.com/city-council-2 Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 860-6190-5675#
One Tap Mobile: +16694449171,,86061905675# US
This meeting will be held in-person. This meeting is being streamed to YouTube at www.youtube.com/cityofsanrafael.

How to participate in the meeting:
• You are welcome to come to the meeting and provide public comment in person. Each speaker will have 2-minutes to provide public comment per agenda item. • Submit your comments by email to [email protected] by 4:00 p.m. the day of the meeting.

If you experience technical difficulties during the meeting, please contact [email protected].

OPEN SESSION – THIRD FLOOR CONFERENCE ROOM – 4:45 PM

1. Mayor Kate to announce Closed Session items.

CLOSED SESSION – THIRD FLOOR CONFERENCE ROOM – 4:45 PM

2. Closed Session:
a. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2) b. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 350 Merrydale Road / 3833 Redwood Highway, San Rafael APNs 179-041-27 & 179-041-28
Agency negotiator: Cristine Alilovich, City Manager; John Stefanski, Assistant City Manager; Daniel Cooperman, Community Services Division Director
Negotiating parties: Ridgewood Properties, a California General Partnership, as to an undivided ½ interest; and Francine M. Clayton, Trustee of The Francine M. Clayton 1996 Trust, as to an undivided ½ interest
Under negotiation: Price and Terms of Payment
CITY MANAGER AND COUNCILMEMBER REPORTS:
(including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

3. City Manager and Councilmember Reports:

CONSENT CALENDAR:

The opportunity for public comment on consent calendar items will occur prior to the City Council’s vote on the Consent Calendar. The City Council may approve the entire consent calendar with one 2 action. In the alternative, items on the Consent Calendar may be removed by any City Council or staff member, for separate discussion and vote.

4. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the Regular and Special City Council Meetings of May 5, 2025 (CC) Recommended Action - Approve minutes as submitted
b. Local Responsibility Area Fire Hazard Severity Zone Maps Final Adoption of Ordinance 2047: An Ordinance to Designate Fire Hazard Severity Zones in Local Responsibility Areas (FD)
Recommended Action – Final Adoption of Ordinance 2047
c. Purchasing Policy and Public Works Contracts Policy Updates i. Final Adoption of Ordinance 2048: An Ordinance Amending Chapter 2.55 of the San Rafael Municipal Code Titled “Purchasing Policy” (Fin)
Recommended Action – Final Adoption of Ordinance 2048
ii. Final Adoption of Ordinance 2049: An Ordinance Amending Chapter 11.50 of the San Rafael Municipal Code, Titled “Public Works Contract Policy” (Fin) Recommended Action – Final Adoption of Ordinance 2049
d. Special Event Street Closures in San Rafael
Resolution Authorizing the Temporary Closure of Streets in San Rafael for Special Events (PD)
Recommended Action – Adopt Resolution
e. Proclamation
Proclamation Supporting National Public Works Week 2025, May 18 - 24, 2025 and a Proclamation for Reverand Jan Heglund, Retiring After 27 Years Recommended Action – Receive and file

SPECIAL PRESENTATIONS

5. Special Presentations
a. Presentation of Proclamation for Reverand Jan Heglund, Retiring After 27 Years

OTHR AGENDA ITEMS

6. Other Agenda Items
a. Preliminary Citywide Proposed Budget for Fiscal Year 2025-26 Preliminary Citywide Proposed Budget and Proposed Capital Improvement Program for Fiscal Year 2025-26 (Fin)
Recommended Action – Accept Report

OPEN TIME FOR PUBLIC EXPRESSION
The public is welcome to address the City Council at this time on matters not on the agenda that are within its jurisdiction. Please be advised that pursuant to Government Code Section 54954.2, the City Council is not permitted to discuss or take action on any matter not on the agenda unless it determines that an emergency exists, or that there is a need to take immediate action which arose following posting 3 of the agenda. Comments may be no longer than two minutes and should be respectful to the community.

ADJOURNMENT:

Any records relating to an agenda item, received by a majority or more of the Council less than 72 hours before the meeting, shall be available for inspection online and at City Hall, 1400 Fifth Avenue, and placed with other agendarelated materials on the table in front of the Council Chamber prior to the meeting. Sign Language interpreters may be requested by calling (415) 485-3066 (voice), emailing [email protected] or using the California Telecommunications Relay Service by dialing “711”, at least 72 hours in advance of the meeting. Copies of documents are available in accessible formats upon request. To request Spanish language interpretation, please submit an online form at https://www.cityofsanrafael.org/request-for-interpretation/.

Subject to Approval at the 5/19/2025 City Council Meeting

MINUTES
SAN RAFAEL CITY COUNCIL - MONDAY, MAY 5, 2025
REGULAR MEETING AT 6:00 P.M.

San Rafael City Hall, Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Watch Online:

Watch on Zoom Webinar: https://tinyurl.com/city-council-1 Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 863-4489-1398
One Tap Mobile: +16694449171,,86344891398# US
This meeting will be held in-person. This meeting is being streamed to YouTube at www.youtube.com/cityofsanrafael.

If you experience technical difficulties during the meeting, please contact [email protected].

OPEN SESSION – THIRD FLOOR CONFERENCE ROOM – 5:00 PM

1. Mayor Kate announced Closed Session items.

CLOSED SESSION – THIRD FLOOR CONFERENCE ROOM – 5:00 PM

2. Closed Session:
a. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 350 Merrydale Road / 3833 Redwood Highway, San Rafael APNs 179-041-27 & 179-041-28
Agency negotiator: Cristine Alilovich, City Manager; John Stefanski, Assistant City Manager; Daniel Cooperman, Community Services Division Director
Negotiating parties: Ridgewood Properties, a California General Partnership, as to an undivided ½ interest; and Francine M. Clayton, Trustee of The Francine M. Clayton 1996 Trust, as to an undivided ½ interest
Under negotiation: Price and Terms of Payment
b. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 620 Canal Street, San Rafael, CA (APN 014-162-01) Agency negotiator: Cristine Alilovich, City Manager; Micah Hinkle, Director of Community and Economic Department; Greg Minor, Assistant Director of Community and Economic Development
Negotiating parties: The Anthony Cavallo Trust
Under negotiation: Price and Terms of Payment
2 Present: Vice Mayor Bushey
Councilmember Hill
Councilmember Llorens Gulati
Mayor Kate

Absent: Councilmember Kertz
Also Present: City Manager Cristine Alilovich
City Attorney Robert Epstein
City Clerk Lindsay Lara
Mayor Kate called the meeting to order at 6:03 p.m. and invited City Clerk Lindsay Lara to call the roll. All members of the City Council were present, except for Councilmember Kertz.

City Attorney Robert Epstein announced that no reportable action was taken in Closed Session for item 2.b, and the City Council would adjourn to Closed Session to continue the meeting for item

2.a.

Mayor Kate provided opening remarks which included gratitude to City Staff, announcing the Employee of the Year Hector Carlos, Code Enforcement Supervisor and the Team of the Year, San Rafael Field Training Officer Team, Sergeant Robert Cleland, Sergeant Justin Graham, Sergeant Scott Ingels, Corporal Rick Cuddy, Corporal Scott Brooks, Corporal Dennis Prince, Corporal Justin Schraeder, Officer Joe Jordan, Officer Brian Patterson, Officer Chris Heinlein and Officer Jennifer Gamble, and a land acknowledgment.

City Clerk Lindsay Lara informed the community that the in-person meeting would also be recorded and streamed live to YouTube and through Zoom. She noted the two-minute timer for public comment and closed captioning on Zoom.

CITY MANAGER AND COUNCILMEMBER REPORTS:
(including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

3. City Manager and Councilmember Reports:

City Manager Cristine Alilovich reported/announced:
• May as Mental Health Awareness Month
• Wildfire Prevention Week Event on May 9th from 10 a.m. – 1 p.m. • Free Emergency Preparedness Workshop Saturday, May 10th from 11 a.m. – 2 p.m. at the San Rafael Community Center
• Bicycle and Pedestrian Master Plan open house on May 14th from 5-7 p.m. at the San Rafael Community Center
• May Madness Car Cruise on May 9th at 6 p.m., and May 10th car show from 12-6 p.m. at San Rafael downtown
City Councilmember Reports:
• Vice Mayor Bushey reported on Marin Water Managers meeting, and Marin Transit Board meeting.
• Councilmember Llorens Gulati reported on Climate Change Action Plan quarterly meeting, Voces de Canal meeting, 2025 Canal Promise, Wildcare groundbreaking ceremony, Canal Alliance’s Feria Comunitaria: Nuestro Canal, Nuestro Futuro, Marin Transit, and MC Clean Energy Emergency Committee.
• Councilmember Hill reported on the Youth Town Hall at Marin Civic Center, announced Lynda Roberts, Marin County Registrar of Voters, retiring from Elections Office. 3 • Mayor Kate reported on Earth Day downtown cleanup, Wildcare groundbreaking, San Rafael Girls Youth Softball opening day, and Transportation Authority of Marin’s ad hoc committee 101/580 Update.

Mayor Kate invited public comment; however, there was none.

CONSENT CALENDAR:

Mayor Kate invited public comment; however, there was none.

Councilmember Llorens Gulati moved and Vice Mayor Bushey seconded to approve the Consent Calendar

4. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the Regular and Special City Council Meetings of April 21, 2025 (CC) Approved minutes as submitted
b. Proclamations
Supporting National Older American’s Month; Asian American and Pacific Islander Heritage Month; National Wildfire Awareness Month; Mental Health Awareness Month; Public Service Recognition Week; and National Police Week Received and filed
c. City Quarterly Investment Report
Acceptance of City of San Rafael Quarterly Investment Report for the Quarter Ending March 31, 2025 (Fin)
Accepted report
d. Pavement Management Program – Three- and Five-Year Plan Resolution Authorizing the City Manager to Execute a First Amendment to the Professional Services Agreement with El Reino Lara LLC DBA Cal Pavement Management for Additional Design and Planning Services Associated with the Pavement Management Program – Three- and Five-Year Plan, in the Amount Not to Exceed $70,000, Increasing the Total Not-to-Exceed Amount Under the Agreement of $144,500 (PW) Adopted Resolution 15404
e. Metropolitan Transportation Commission (MTC) Regional Active Transportation Program (ATP) Cycle 7 Resolution of Local Support
Resolution of Local Support Authorizing the Filing of an Application for Funding Assigned to MTC and Committing Any Necessary Matching Funds and Stating the Assurance to Complete the Downtown San Rafael North-South Greenway Gap Closure Project (PW) Adopted Resolution 15405
f. Canal Parking Striping Project Notice of Completion
Accept Completion of the Canal Parking Striping Project, City Project No. 11438, and Authorize the City Clerk to File the Notice of Completion (PW) Accepted completion and authorized the City Clerk to file the Notice of Completion g. FY 2025-26 Road Maintenance and Rehabilitation Account Projects, Funded by Senate Bill 1 4
Resolution Adopting a List of Projects for Fiscal Year 2025-26 Funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 (PW)
Adopted Resolution 15406
AYES: Councilmembers: Bushey, Hill, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Kertz

PUBLIC HEARINGS

5. Public Hearings
a. Local Responsibility Area Fire Hazard Severity Zone Maps Introduction of An Ordinance to Designate Fire Hazard Severity Zones in Local Responsibility Areas (FD)
Wildfire Mitigation Program Manager Kate Andersen presented the Staff Report.

Staff responded to questions from the City Council.

Mayor Kate invited public comment; however, there was none.

City Council provided comments.

Vice Mayor Bushey moved and Councilmember Hill seconded to introduce the Ordinance, waive further reading of the Ordinance, and refer to it by title only.

AYES: Councilmembers: Bushey, Hill, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Kertz
The City Clerk read the title of the Ordinance:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL TO DESIGNATE

FIRE HAZARD SEVERITY ZONES IN LOCAL RESPONSIBILITY AREAS Introduced Ordinance, waived further reading of the Ordinance, and referred to it by title only b. Purchasing Policy and Public Works Contracts Policy Updates i. Introduction of an Ordinance Amending Chapter 2.55 of the San Rafael Municipal Code Titled “Purchasing Policy” (Fin)
ii. Introduction of an Ordinance Amending Chapter 11.50 of the San Rafael Municipal Code, Titled “Public Works Contract Policy” (Fin)
Finance Director Paul Navazio presented the Staff Report.

Staff responded to questions from the City Council.

Mayor Kate invited public comment; however, there was none.

City Council provided comments.
5 Vice Mayor Bushey moved and Councilmember Llorens Gulati seconded to introduce the Ordinance, waive further reading of the Ordinance, and refer to it by title only.

AYES: Councilmembers: Bushey, Hill, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Kertz
The City Clerk read the title of the Ordinance:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 2.55 OF THE SAN RAFAEL MUNICIPAL CODE TITLED “PURCHASING POLICY” Introduced Ordinance, waived further reading of the Ordinance, and referred to it by title only Vice Mayor Bushey moved and Councilmember Llorens Gulati seconded to introduce the Ordinance, waive further reading of the Ordinance, and refer to it by title only.

AYES: Councilmembers: Bushey, Hill, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Kertz
The City Clerk read the title of the Ordinance:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 11.50 OF THE SAN RAFAEL MUNICIPAL CODE, TITLED “PUBLIC WORKS CONTRACT POLICY”
Introduced Ordinance, waived further reading of the Ordinance, and referred to it by title only c. Reporting on Vacant Positions
Compliance with Assembly Bill 2561 (2023-2024): Reporting on Vacancy Rates and Actions Taken to Address Vacancies in City Departments (HR) Human Resources Director Marissa Sanchez presented the Staff Report.

Staff responded to questions from the City Council.

Mayor Kate invited public comment; however, there was none.

City Council provided comments.

Councilmember Hill moved and Councilmember Bushey seconded to accept the report.

AYES: Councilmembers: Bushey, Hill, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Kertz
Accepted report

OPEN TIME FOR PUBLIC EXPRESSION
None.

ADJOURNMENT:
6 Mayor Kate adjourned the meeting at 6:58 pm.
__________________________
LINDSAY LARA, City Clerk
APPROVED THIS _____DAY OF____________, 2025
_____________________________________
KATE COLIN, Mayor

MINUTES

SAN RAFAEL CITY COUNCIL SPECIAL MEETING
MONDAY, MAY 5, 2025 AT 4:00 P.M.

Third Floor Conference Room
1400 Fifth Avenue, San Rafael, CA 94901
Watch on Webinar
Watch Online: https://tinyurl.com/ccsp-2025-05-05
Listen by phone: (669) 444-9171
ID: 843-5455-5536
One Tap Mobile: +16694449171,,84354555536# US

Present: Vice Mayor Bushey
Councilmember Hill
Councilmember Llorens Gulati
Mayor Kate

Absent: Councilmember Kertz
Also Present: City Manager Cristine Alilovich
City Attorney Robert Epstein
City Clerk Lindsay Lara
Mayor Kate called the meeting to order at 4:00 p.m. and invited City Clerk Lindsay Lara to call the roll.

All members of the City Council were present, except Councilmember Kertz who was absent. a. City Council Goals and Objectives
The City Council will conduct a goals and objectives workshop. The purpose of the workshop is to build alignment around the City Council’s vision for the next three-year goals and objectives plan period. The City Council will review and discuss draft goals and objectives which will inform the City’s budget development process and provide a roadmap for organizational success.

Assistant City Manager John Stefanski provided background on the draft Goals and Objectives, the recommended changes from the previous study session and the reviewed the process for the evening.

Mayor Kate invited public comment.

Speakers: Bill Carney Sustainable San Rafael, Amy Likover, Victoria DeWitt, Yavar Amidi of Raíces Del Canal, Marley Brezzo
ADJOURNMENT:

Mayor Kate adjourned the meeting at 5:05 p.m.
___________________________
LINDSAY LARA, City Clerk
APPROVED THIS _____DAY OF____________, 2025
_____________________________________
KATE COLIN, Mayor
SUMMARY OF ORDINANCE NO. 2047

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN

RAFAEL TO DESIGNATE FIRE HAZARD SEVERITY ZONES IN LOCAL RESPONSIBILITY AREAS.

This Summary concerns a proposed ordinance of the City of San Rafael, designated as Ordinance No. 2047, which will designate Fire Hazard Severity Zones (FHSZ) in Local Responsibility Area (LRA). Ordinance No. 2047 is scheduled for adoption by the San Rafael City Council at its regular meeting of May 19, 2025. The City Clerk has been directed to publish this Summary pursuant to City Charter and California Government Code section 36933(c)(1).

SUMMARY OF AMENDMENT TO MUNICIPAL CODE
Ordinance No. 2047 will designate Fire Hazard Severity Zones in San Rafael as identified by the California Department of Forestry and Fire Protection. The zones are classified as moderate, high, or very high, and have been determined by a model that incorporates factors including vegetation, fire history, flame length, blowing embers, topography, and climate. San Rafael has no areas identified as very high fire severity, and staff has not requested changes to the map. Adoption of the FHSZ maps will help promote public safety, support land use planning, and align with state wildfire resilience initiatives. The LRA maps for Marin County were released on February 24, 2025 and the City has 120 days to adopt the map.

Copies of Ordinance No. 2047 are available for public review on the City’s website: https://www.cityofsanrafael.org. You may also contact the City Clerk at (415) 485-3066 for information.
________________________________

LINDSAY LARA
San Rafael City Clerk
Dated: 5/9/2025
1 ORDINANCE NO. 2047

AN ORDINANCE OF THE CITY OF SAN RAFAEL TO DESIGNATE FIRE HAZARD SEVERITY ZONES IN LOCAL RESPONSIBILITY AREAS.

WHEREAS, pursuant to Government Code 51178, the State Fire Marshal shall identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas.

WHEREAS, moderate, high, and very high fire hazard severity zones shall be based on fuel loading, slope, fire weather, and other relevant factors including areas where winds have been identified by the Office of the State Fire Marshal as a major cause of wildfire spread.

WHEREAS, Local Responsibility Areas (LRA) are in incorporated cities, urban regions, agricultural lands, and portions of the desert where the local government is responsible for wildfire protection. This is typically provided by city departments, fire protection districts, counties, and by CALFIRE under contract.

WHEREAS, the City of San Rafael recognizes the increasing threat of wildfires to life, property, and natural resources, particularly in areas where urban development intersects with wildland vegetation; and
WHEREAS, the City Council of San Rafael previously adopted the 38-point Wildfire Prevention and Protection Action Plan, a comprehensive framework for wildfire mitigation that includes actions such as community education, defensible space enforcement, fuel reduction, and infrastructure hardening; and
WHEREAS, the City of San Rafael has adopted Wildland-Urban Interface (WUI) building standards that strengthen new construction and retrofits within identified fire hazard areas to improve structural resilience and reduce ignition risks; and WHEREAS, the City continues to implement progressive Vegetation Management Standards through its fire prevention codes, including regulations on defensible space, hazardous vegetation removal, and maintenance of landscape materials to reduce fire fuel loads; and
WHEREAS, pursuant to Government Code Section 51179, the City is required to designate by ordinance, moderate, high, and very high fire hazard severity zones in its 2 jurisdiction within 120 days of receiving recommendations from the State Fire Marshal pursuant to Government Code Section 51178; and
WHEREAS, the designation of Fire Hazard Severity Zones supports San Rafael's longterm strategic efforts to protect public safety, guide appropriate land use planning, and align local actions with state wildfire resilience initiatives.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

SECTION 1. DESIGNATION OF FIRE HAZARD SEVERITY ZONES

1. The City hereby designates the Fire Hazard Severity Zones as recommended by the California Department of Forestry and Fire Protection pursuant to Government Code Section 51178.

2. The map approved by the City, is hereby incorporated by reference, and entitled “City of San Rafael LRA Fire Hazard Severity Zones.”

3. The official map is located electronically with the City of San Rafael at www.SRFD.org
SECTION 2. SEVERABILITY
Every section, paragraph, clause, and phrase of this Ordinance is hereby declared to be severable. If for any reason, any section, paragraph, clause, or phrase is held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, clauses or phrases, and the remaining portions or this Ordinance shall continue in full force and effect unless amended or modified by the City.

SECTION 3. EFFECTIVE DATE AND PUBLICATION
This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published and circulated in the City of San Rafael and shall be in full force and effect 30 days after its adoption. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California. Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk, a certified copy of the full text of this Ordinance along with the names of those Councilmembers voting for and against the Ordinance.
3 THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the San Rafael City Council on the 5th day of May 2025, and was passed and adopted at a regular meeting of the San Rafael City Council on the 19th of May 2025, by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_____________________
Kate Colin, Mayor
ATTEST:
_____________________
Lindsay Lara, City Clerk
SUMMARY OF ORDINANCE NO. 2048
AN ORDINANCE OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 2.55 OF THE SAN RAFAEL MUNICIPAL CODE ENTITLED “PURCHASING POLICY” TO UPDATE THE CITY OF SAN RAFAEL’S PURCHASING POLICIES AND

PROCEDURES
This Summary concerns a proposed ordinance of the City of San Rafael, designated as Ordinance No. 2048, which will amend Chapter 2.55 of the San Rafael Municipal Code. Ordinance No.2048 is scheduled for adoption by the San Rafael City Council at its regular meeting of May 19, 2025. The City Clerk has been directed to publish this Summary pursuant to City Charter and California Government Code section 36933(c)(1).

SUMMARY OF AMENDMENT TO MUNICIPAL CODE
An ordinance is proposed to amend Chapter 2.55 to make changes to the City’s purchasing policies and procedures, including, but not limited to, the following: increasing the City Manager’s award authority to $100,000; clarifying award authority for modifications to contracts and purchase orders; clarifying requirement for available budget appropriations for multi-year contracts; and increasing the threshold amount for formal bidding to $100,000.

Copies of Ordinance No. 2048 are available for public review on the City’s website: https://www.cityofsanrafael.org. You may also contact the City Clerk at (415) 485-3066 for information.
________________________________

LINDSAY LARA
San Rafael City Clerk
Dated: 5/9/25
1 ORDINANCE NO. 2048

AN ORDINANCE OF THE CITY OF SAN RAFAEL AMENDING CHAPTER

2.55 OF THE SAN RAFAEL MUNICIPAL CODE ENTITLED “PURCHASING POLICY” TO UPDATE THE CITY OF SAN RAFAEL’S PURCHASING

POLICIES AND PROCEDURES
WHEREAS, in 1994, the San Rafael City Council adopted Ordinance No. 1661, adding Chapter 2.55, Purchasing Policy, to the San Rafael Municipal Code; and WHEREAS, in 1997, the San Rafael City Council adopted Ordinance No. 1707, adding Chapter 2.60, Professional Services Agreements, to the San Rafael Municipal Code; and WHEREAS, in 2018 the San Rafael City Council adopted Ordinance No.1975 amending Chapters 2.55 and repealing Chapter 2.60 of the San Rafael Municipal Code to consolidate the City of San Rafael’s purchasing policies and procedures for procurement of supplies, materials, equipment and services; and
WHEREAS, the City of San Rafael’s purchasing policies and procedures require updates periodically in order to reflect best practices in procurement and purchasing, as well as to comply with evolving federal and state requirements; and WHEREAS, the City Council desires to amend Chapter 2.55 of the San Rafael Municipal Code in order to update the City’s purchasing policies and procedures in order to reflect best practices in procurement and purchasing while also promoting efficiency and effectiveness of exercise of the City’s procurement activities; WHEREAS, the City’s purchasing policy established the City Manager’s award authority, which was last adjusted in 2018, and the City Council desired to provide for inflationary adjustment to increase the City Manager’s award authority from $75,000 to $100,000; and
WHEREAS, the City purchasing policy establishes dollar thresholds and award authority for informal and formal bidding procedures, and whereby the current policy establishes that informal bids, defined as not exceeding $75,000, shall be awarded by the City Manager, and formal bid awards, defined as exceeding $75,000 shall be awarded by the City Council; and
WHEREA, the City Council desires to update the dollar threshold for distinguishing between informal and formal bid requirements from $75,000 to $100,000; and WHEREAS, the City’s purchasing policy provides that award authority for modifications to contracts or purchase orders may be awarded by the City Manager if the dollar value of the modification is within their award authority; and 2 WHEREAS, in July 2024 the City’s internal purchasing administrative procedures developed to ensure compliance with the purchasing policy were updated to clarify that for application of contract award authority, the value of a modification is determined by the total value of the original contract or purchase order, plus the dollar amount of the modification and the City Council desires to codify this clarification with the City’s formal purchasing policy; and,
WHEREAS, City’s purchasing provides that no contract or purchase order shall be awarded without sufficient available budget appropriations within the account to which the contract is to be charged; and the City Council desires to amend the policy to include requirements for multi-year contracts where funding is provided annually through the budget process; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES HEREBY ORDAIN AS FOLLOWS:

DIVISION 1:

Chapter 2.55 of the San Rafael Municipal Code entitled “Purchasing Policy” is hereby amended as follows: Additions are shown in underline and deletions in strikethrough.

CHAPTER 2.55 – PURCHASING POLICY

2.55.020 - Definitions.

As used in this chapter, the following terms are defined as follows:

G. "Purchasing agent" shall mean the city manager or theirhis or her designee.

2.55.040 - Award authority.

A. If the amount of any purchase or contract exceeds seventy-five one hundred thousand dollars ($75,000.00$100,000), bids shall be awarded by the City Council. Purchases or contracts equal to or less than seventy-five one hundred thousand dollars ($75,000.00$100,000) shall be awarded by the city manager or their designee.

B. No purchases made by any person, or in any manner other than as described herein, shall be binding upon the City or constitute a lawful charge against any City funds.

C. Modifications to contracts or purchase orders which represent no change in the scope of the character of material or services provided in the original contract or purchase order may be approved by the city manager or purchasing agent if the dollar value of the original contract to purchase order plus the modification is within their award authority.

2.55.080 - Encumbrance of funds.
3 Except in cases of emergency, no purchase order or any contract or any modification thereto shall be approved for supplies, materials, equipment or services unless there exists an unencumbered appropriation in the fund account against which said purchase or contract is to be charged. Multi-year contracts where appropriations are provided on an annual basis shall be awarded subject to future budget appropriations.

2.55.260 – Informal bids.

Any contract or purchase not exceeding seventy-five thousand one hundred thousand dollars ($75,000.00$100,000) may be made in accordance with informal bidding procedures; provided, however, that requirements shall not be artificially divided so as to constitute a purchase under this section.

DIVISION 2:

This Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to the State CEQA Guidelines, since it can be seen with certainty that there is no possibility that this Ordinance or its implementation would have a significant effect on the environment (14 Cal. Code Regs. Section 15061(b)(3)).

DIVISION 3:

If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid.

DIVISION 4:

A summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to the City Council meeting at which it is adopted.

This Ordinance shall be in full force and effect thirty (30) days after its final passage, and the summary of this Ordinance shall be published within fifteen (15) days after the adoption, together with the names of the Councilmembers voting for or against same, in the Marin Independent Journal, a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California.

Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk, a certified copy of the full text of this Ordinance along with the names of those Councilmembers voting for and against the Ordinance. 4 THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the City Council of the City of San Rafael on 5
th day of May 2025, and was passed and
adopted at a regular meeting of the San Rafael City Council on the 19th of May 2025 by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
________________________________
Kate Colin, Mayor
ATTEST:
______________________
LINDSAY LARA, City Clerk
SUMMARY OF ORDINANCE NO. 2049
AN ORDINANCE AMENDING CHAPTER 11.50 OF TITLE 11 OF THE

SAN RAFAEL MUNICIPAL CODE, TITLED PUBLIC WORKS CONTRACT POLICY This Summary concerns a proposed ordinance of the City of San Rafael, designated as Ordinance No. 2049, which will amend Chapter 11.50 of the San Rafael Municipal Code. Ordinance No. 2049 is scheduled for adoption by the San Rafael City Council at its regular meeting of May 19, 2025. The City Clerk has been directed to publish this Summary pursuant to City Charter and California Government Code section 36933(c)(1).

SUMMARY OF AMENDMENT TO MUNICIPAL CODE
An ordinance is proposed to amend Chapter 11.50, as follows: establishing that the City Council’s delegation of award authority for contracts awarded through informal bidding procedures rests with the City Manager, or their designee; and clarifying requirement for available budget appropriations for multi-year public works maintenance contracts.

Copies of Ordinance No. 2049 are available for public review on the City’s website: https://www.cityofsanrafael.org. You may also contact the City Clerk at (415) 485-3066 for information.
________________________________

LINDSAY LARA
San Rafael City Clerk
Dated: 5/9/25
ORDINANCE NO. 2049
AN ORDINANCE AMENDING CHAPTER 11.50 OF TITLE 11 OF THE SAN RAFAEL

MUNICIPAL CODE, TITLED PUBLIC WORKS CONTRACT POLICY
WHEREAS, Chapter 11.50 of the San Rafael Municipal Code (“SRMC”) sets forth the City of San Rafael’s public works contract policy, which includes separate bidding and award procedures for “minor contracts” and “major contracts”; and WHEREAS, City’s public works contract policy, provides that no public works contract shall be awarded without sufficient available budget appropriations within the account to which the contract is to be charged; and the City Council desires to amend the policy to include requirements for multi-year contracts where funding is provided annually through the budget process; and
WHEREAS, under the City’s policy, “minor contracts” as defined, follow and informal bidding procedure and may be awarded by the Director of Public Works, and do not require City Council award; and
WHEREAS, the City Council desires to amend the policy’s contract award language to provide that award authority for “minor contracts, as defined, rests with the City Manager or their designee; and
WHEREAS, this Ordinance was introduced and read by title only at a duly-noticed public meeting of the San Rafael City Council on the 5
th day of May 2025.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

DIVISION 1. Chapter 11.50 of Title 11 of the Municipal Code of the City of San Rafael is hereby amended as follows. Additions are shown in underline and deletions in strikethrough.

Chapter 11.50 – PUBLIC WORKS CONTRACT POLICY

11.50.040 Encumbrance of funds.

No public works contract shall be approved for public works unless there exists an unencumbered appropriation in the fund account against which said contract is to be charged. Multi-year maintenance contracts where appropriations are provided on an annual basis shall be awarded subject to future budget appropriations.

11.50.110 Contract award.

C. Awarding Authority. Bids on major contracts shall be awarded by the city council. Bids on minor contracts may be awarded by the director city manager or their designee.

DIVISION 2.

All former ordinances or parts thereof conflicting or inconsistent with the provisions of this Ordinance or the Codes hereby adopted are hereby repealed.

DIVISION 3.

If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion of this Ordinance. The City Council of the City of San Rafael hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases shall be declared invalid.

DIVISION 4.

The City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (CEQA), pursuant to 14 CCR Section 15061(b)(3), since it can be seen with certainty that there is no possibility that the adoption of this Ordinance may have a significant effect on the environment.

DIVISION 5.

This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published and circulated in the City of San Rafael and shall be in full force and effect 30 days after its adoption. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Council members voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California.

THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the San Rafael City Council on the 5
th day of May 2025, and was passed and adopted at
a regular meeting of the San Rafael City Council on the 19th day of May 2025 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________________
Kate Colin, Mayor
Attest:
_____________________________
LINDSAY LARA, City Clerk
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.d
Meeting Date: May 19, 2025

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Police Department
Prepared by: Alex Holm, Lieutenant City Manager Approval: ______________ TOPIC: SPECIAL EVENT STREET CLOSURES IN SAN RAFAEL
SUBJECT: RESOLUTION AUTHORIZING THE TEMPORARY CLOSURE OF STREETS IN SAN

RAFAEL FOR SPECIAL EVENTS
RECOMMENDATION: Staff recommend that the City Council adopt a resolution authorizing the temporary closure of streets in San Rafael for special events.

BACKGROUND:

California Vehicle Code section 21101(e) authorizes the City to adopt a resolution temporarily closing a portion of any street for celebrations, parades, local special events, and other purposes. The San Rafael Police Department has received special event applications for four events which would require street closure and parking restrictions.

The applicants have submitted special event applications which include but are not limited to insurance indemnifying the City from liability associated with the event, a street closure diagram, and detailed information regarding operation and logistics. If approval is granted for the stated street closure, City staff will finalize the application and authorize the closures.

ANALYSIS:

The special event street closure details are as follows:

Event: Downtown Summer San Rafael Market
Date(s): June 13, 2025 (Friday)
July 11, 2025 (Friday)
August 8, 2025 (Friday)
Closure
Location(s): Fourth Street: A Street to Lootens Place
Event Time: 5:00 p.m. – 9:00 p.m.

Closure Time: 3:00 p.m. – 11:00 p.m.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Event: Dancing Under the Lights
Date(s): August 1, 2025 (Friday)
Closure
Location(s): Fourth Street: A Street to Lootens Place
Event Time: 5:00 p.m. – 9:00 p.m.

Closure Time: 2:00 p.m. – 11:00 p.m.

Event: Eye Street Block Party
Date(s): August 23, 2025 (Saturday)
Closure
Location(s): Eye Street: Center Street to Harcourt St
Event Time: 11:00 a.m. – 10:00 p.m.

Closure Time: 1:00 p.m. – 10:00 p.m.

Event: West End Neighborhood Association Block Party
Date(s): September 14, 2025 (Sunday)
Closure
Location(s): Neame Avenue: Santa Margarita Drive to West Crescent Drive Event Time: 11:00 a.m. – 5:00 p.m.

Closure Time: 10:00 a.m. – 5:30 p.m.

Specific street closure times are subject to change and will be determined by City staff as needed for the safety of the event.

COMMUNITY OUTREACH:

The public will be notified of the street closures through a variety of outlets, such as public service messages, event posters, email, electronic signage, and official City of San Rafael social media accounts.

FISCAL IMPACT:

The costs and fees associated with the Police Department, Department of Public Works, and Parking Services will be assessed and reimbursed by event applicants. If an applicant requests a fee reduction or waiver, City staff will evaluate the fiscal impact on each department, considering past practices and the City’s support for community events. Additionally, City staff are in the process of developing a formal application process for fee reductions and waivers for future events.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Adopt the resolution authorizing the specified special event temporary street closure.

2. Adopt resolution with modifications.

3. Direct staff to return with more information.

4. Take no action.

RECOMMENDED ACTION: Staff recommend that the City Council adopt a resolution authorizing the temporary closure of streets in San Rafael for special events.

ATTACHMENTS:

1. Resolution
RESOLUTION NO.

RESOLUTION AUTHORIZING THE TEMPORARY CLOSURE OF STREETS IN SAN RAFAEL FOR

SPECIAL EVENTS
WHEREAS, the San Rafael City Council has determined that it is in the best interests of the public health and safety to implement a modified Traffic Plan and Road Closure for four special events in San Rafael; and
WHEREAS, after reviewing plans for the events and the traffic patterns, City staff has determined and recommended that, in the interest of the safety and welfare of pedestrian and auto traffic in the downtown area, the streets should be temporarily closed to through traffic for the dates and locations as specified in the Staff Report; and
WHEREAS, the specific time periods for the temporary closures described in the Staff Report shall be as determined by the City staff in consultation with the Police Department, and staff shall give timely notice to the public of those time periods by signage and/or other appropriate means.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL HEREBY RESOLVES:

1. That all the above findings are true and correct; and

2. That pursuant to the authority of Vehicle Code section 21101(e), for the safety and protection of persons, both pedestrians and vehicle drivers, the City Council hereby authorizes the temporary closure of the listed street for the locations and date described in the Staff Report as follows:

Closure Time: 3:00 p.m. – 11:00 p.m.

Event: Dancing Under the Lights
Date(s): August 1, 2025 (Friday)
Closure
Location(s): Fourth Street: A Street to Lootens Place
Event Time: 5:00 p.m. – 9:00 p.m.

Closure Time: 2:00 p.m. – 11:00 p.m.

Event: Eye Street Block Party
Date(s): August 23, 2025 (Saturday)
Closure
Location(s): Eye Street: Center Street to Harcourt St
Event Time: 11:00 a.m. – 10:00 p.m.

Closure Time: 1:00 p.m. – 10:00 p.m.

Closure Time: 10:00 a.m. – 5:30 p.m.
.

I, Lindsay Lara, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council held on the 19th day of May 2025 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Lindsay Lara, City Clerk
City of San Rafael
Proclamation in Celebration of
NATIONAL PUBLIC WORKS WEEK 2025
May 18 - 24, 2025
WHEREAS, Public works professionals play a crucial role in maintaining and improving essential infrastructure, facilities, and services for the functioning of our community; and
WHEREAS, their work ensures that San Rafael can provide essential services to residents while also promoting sustainability and resilience in the face of numerous challenges like natural disasters, climate change, and evolving community needs, and their dedicated efforts contribute directly to public health, quality of life, and overall well-being of the community members; and WHEREAS, Public Works personnel are involved in the maintenance, planning, design, and construction of streets, transportation facilities, parks, storm drains, public buildings, and other structures and facilities essential for our residents, as well as right-of-way management and serve as crucial first responders in emergencies; and
WHEREAS, Public Works personnel are essential workers who work hard every day to keep our community safe and functional; and
WHEREAS, it is in the public interest for community members, civic leaders, and children in the City of San Rafael to gain knowledge of and maintain an ongoing interest in and understanding the importance of public works and public works programs in their respective communities; and
WHEREAS, the year 2025 marks the 65th annual National Public Works Week, sponsored by the American Public Works Association; and
WHEREAS, the 2025 National Public Works theme is “People, Purpose, Presence,” highlighting the three cornerstone ideals that motivate public works professionals to serve in their communities every day.

THEREFORE, BE IT RESOLVED that the Mayor and City Council of the City of San Rafael proclaims the week of May 18-24, 2025, as National Public Works Week and call upon all community members and civic organizations to recognize the contributions which public works personnel make every day to protecting our health, safety, comfort, and quality of life.

Kate Colin
Mayor
City of San Rafael
Proclamation
Presented to
Reverand Jan Heglund
WHEREAS, because of the many important contributions that the Reverend Jan Heglund has made to the City of San Rafael, the San Rafael Police Department, and to countless individuals elsewhere, she is deserving of being honored and specially recognized; and WHEREAS, for 27 years, Reverend Jan Heglund has faithfully served as the San Rafael Police Department Chaplain, providing unwavering emotional, spiritual, and compassionate support to crime victims, their families, and first responders; and
WHEREAS, Reverend Jan Heglund responded to one of the nation’s most tragic events, traveling to Ground Zero in the days following the September 11, 2001, attacks to minister to rescue and recovery personnel, serving through the long hours at St. Paul’s Chapel, and offering comfort to those in the midst of trauma and grief; and
WHEREAS, Reverend Jan Heglund has been a guiding presence during countless critical incidents, offering words that brought peace in times of pain and a voice that conveyed deep understanding, never leaving the side of grieving families until every need was met; and WHEREAS, Reverend Jan Heglund co-founded the First Responders Support Network, a San Rafael nonprofit dedicated to supporting first responders experiencing post-traumatic stress, and was recognized for her lifetime of service with induction into the Marin Women’s Hall of Fame in 2013; and WHEREAS, over her decades of service, she officiated 85 weddings, provided heartfelt eulogies for fallen officers, and blessed all, from homes touched by violence to cherished family pets, always meeting people where they were, with empathy, humility, and grace; and WHEREAS, her presence has been an integral part of the police department culture, symbolizing care, stability, and trust; and
WHEREAS, Reverend Jan Heglund's selfless dedication, sincere kindness, humor, and remarkable strength have left a lasting and immeasurable impact on the police department members she served beside, the families she supported, and the community she embraced as her own.

NOW THEREFORE BE IT RESOLVED, on behalf of the entire community of San Rafael, the City, and the City Council, I, Kate Colin, do hereby warmly express our deepest gratitude and appreciation to the Reverend Jan Heglund for her exceptional service, compassion, and legacy of love. We honor her as she embarks on a well-earned retirement and extend our heartfelt best wishes for her next chapter.
___________________________
Kate Colin
Mayor
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: May 19, 2025
Disposition:

Agenda Item No: 6.a
Meeting Date: May 19, 2025

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio, Finance Director
Shawn Plate, Finance Manager
Van Bach, Accounting Manager
City Manager Approval: ___________
TOPIC: PRELIMINARY CITYWIDE PROPOSED BUDGET FOR FISCAL YEAR 2025-26 SUBJECT: PRELIMINARY CITYWIDE PROPOSED BUDGET AND PROPOSED CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2025-26
RECOMMENDATION:

Staff recommends that the City Council receive the report related to the Preliminary Citywide Proposed Budget for Fiscal Year (FY) 2025-26 and provide direction to staff to inform the preparation of the Final Proposed FY 2025-26 Budget for adoption at the City Council meeting of June 2, 2025.

EXECUTIVE SUMMARY:

This report presents the preliminary proposed citywide budget for Fiscal Year (FY) 2025-26. This item represents the next step in the development of the City’s FY 2025-26 budget and is intended to provide the City Council with the opportunity to preview the overall proposed budget as well as specific funding recommendations before staff finalizing the FY 2025-26 Budget for the City Council to consider for adoption at their meeting on June 2, 2025.

The budget is both a spending plan for the City’s available financial resources and the legal authority for City departments to spend these resources for public purposes. It is through these resources that programs and services are provided, and capital investments are made to meet the needs of the community. As a result, in addition to considering the constraints imposed by current and projected resources available to meet these needs, the annual budget and multi-year capital plan are aligned with the existing fiscal policies as approved by the City Council.

Additionally, the proposed budget aligns with the proposed City Council 3-year (FY 2025-28) Strategic Plan, which includes the Council’s goals and objectives, which will be presented at the June 2, 2025, City Council meeting.

To balance these objectives, the budget supporting ongoing operations and service levels must be funded largely through recurring revenues, while non-recurring expenditures, one-time projects, and capital investments are funded through a combination of recurring and one-time PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 2 funding sources, as well as available fund balances identified for specific projects and initiatives.

Another guiding objective of the annual budget development process is to ensure the sustainability of City programs and services through the three to five-year planning horizon to ensure that service levels and community needs can continue to be met in the future, and that the FY 2025-26 budget does not compromise the City’s long-term fiscal condition.

The overall budget has also been prepared in the context of increasing uncertainty in terms of both the general economic outlook for FY 2025-26 as well as potential impacts from federal funding policy that may have a direct impact on access to and availability of federal grants supporting City programs and capital infrastructure investments.

The Preliminary Proposed FY 2025-26 All Funds budget reflects expenditure appropriations of $191,760,385, including operations ($165,165271), capital ($15,419,204) and transfers ($11,175,910). This level of expenditure appropriations represents a decrease of 9.0% over the original FY 2024-25 adopted budget and is supported through a combination of FY 2025-26 revenues ($178,488,472), transfers ($11,175,910) and available fund balances.

The Preliminary Proposed FY 2025-26 budget supports an authorized staffing level of 416.15 fulltime equivalent positions, representing an increase of 0.44 FTE from the level authorized in the Mid-Year Budget Update, and a net reduction of 0.19 from the level authorized via adoption of FY 2024-25 Final Budget.

The Preliminary Proposed FY 2025-26 General Fund budget reflects recommended appropriations of $113,356,822, supporting ongoing General Fund operational expenditures as well as selected one-time funding needs and transfers. This level of appropriations is supported through projected FY 2025-26 revenues of $106,493,855, as well as the use of available onetime assigned fund balance of $6,861,967. Total General Fund expenditure appropriations are proposed to increase by $1.07 million (0.9%) over the FY 2024-25 Adopted Budget. Expenditures for City programs and services supported by the General Fund, (exclusive of transfers) are proposed to increase by $2.61 million, or 2.6%. Transfers from the General Fund are proposed totaling $8.71 million, compared to $10.3 million approved with the FY 2024-25 budget.

Overall, the appropriations included in the Preliminary Proposed FY 2025-26 budget, as presented herein, are within the City’s constitutional GANN spending limit.

City Council Goals and Objectives
The City Manager proposed a new three-year strategic planning approach to the Council goals & objectives process for FY 2025-28 at the City Council’s annual retreat last December, which the Council approved. The proposed seven Council priority focus areas are as follows:

A. Economic & Neighborhood Vitality
B. Mobility & Infrastructure
C. Sustainability & Resilience
D. Housing & Homelessness
E. Quality of Life: Safety, Wellness & Belonging
F. High Performance Government: Innovative & Inclusive
G. Equity, Access & Opportunity for All
The City Council held a Study Session on March 3, 2025, to discuss the updated framework and preliminary presentation of the 3-year Strategic Plan 2025-2028. A second City Council Study PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 3 Session was held on May 5, 2025, to inform the refinement of the City Council’s 3-year Strategic Plan, which includes the City Council’s goals and objectives. The City Council is scheduled to consider the adoption of the Three-Year Strategic Plan on June 2nd. Concurrently, staff are developing FY 2025-26 workplans that support the implementation of the Council’s goals and objectives. The funding recommendations included in the Preliminary Proposed FY 2025-26 Budget are intended to ensure that available resources are allocated in support of key initiatives projects aligned with the City Council’s stated priorities, while maintaining service levels for baseline City programs, services, and operations
Staff Report Outline
This staff report will focus on the following key areas:
1) Update on FY 2024-25 revenues and expenditures through Q3 (March 31, 2025) 2) Preliminary Proposed Budget for FY 2025-26
a) All Funds Summary
b) General Fund
c) Selected Other Funds
3) Proposed Capital Improvement Program Budget for FY 2025-26 ANALYSIS:

CURRENT BUDGET - FISCAL YEAR 2024-25 THIRD QUARTER UPDATE All Funds
Table 1 provides the current year (FY 2024-25) revenue and expenditure results through the third quarter of the fiscal year, ending March 31, 2025.
• All Funds revenues through the third quarter were recorded at $117.89 million, which represented 60.3% of the amended budget of $195.60 million. • All Funds expenditures and encumbrances for the same period were recorded at $163.50 million, or 70.3% of the amended FY 2023-24 budget of $232.46 million.

Table 1: All Funds Revenue and Expenditure Results (through 3/31/25) All Funds
Adopted Budget
FY 2024-25
Amended Budget
FY 2024-25
Actual Results
Through 3/31/25
% of Amended
FY2024-25
Budget
Revenues $ 177,317,039 $ 182,367,444 $ 106,936,060 58.6% Transfers in 13,211,806 13,228,386 10,956,147 82.8%
Total Resources $ 190,528,845 $ 195,595,830 $ 117,892,207 60.3% Expenditures $ 210,813,072 $ 219,232,828 $ 152,542,186 69.6% Transfers out 13,211,806 13,228,386 10,956,147 82.8%
Total Appropriations $ 210,813,072 $ 232,461,214 $ 163,498,333 70.3% Net Results $ (20,284,227) $ (36,865,384)
PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 4 General Fund
Revenues: The original FY 2024-25 budget, adopted on June 17, 2024, projected $103.79 million in revenues. The Mid-Year Budget Update presented on February 18, 2025, projected year-end General Fund revenues of $105.11 million.
• Revenue results through the third quarter of the fiscal year were recorded at $62.31 million, or 60.0% of the amended budget.
• Based on results through the third quarter, year-end General Fund revenue projections have been updated to $104.29 million, or 0.5% above the FY 2024-25 amended budget. • Current year revenues continue to show favorable variances in property tax, interest earnings, and transient occupancy (hotel) tax receipts, while sales tax and transfer tax revenues are slightly below budgeted levels.

Expenditures: The FY 2024-25 adopted budget provided expenditure appropriations of $112.29 million. The current amended FY 2024-25 General Fund budget stands at $112.86 million, reflecting supplemental appropriations for capital projects approved by the City Council, primarily matching funds for the Pickleweed Park Improvement Project grant. • Expenditures and encumbrances through the third quarter of the fiscal year were recorded at $83.99 million, or 74.4% of the amended budget.
• Based on these results, General Fund expenditures are projected to end the fiscal year at $111.80 million, or $1.06 million (0.9%) below the amended budget. • In comparison to the Mid-Year Budget Update, projected personnel expenditures are projected to be largely within budget, while non-personnel expenditures (supplies and services) contribute to the projected year-end expenditures coming in under budget.

Operating results: The projected year-end General Fund revenue and expenditure results combine to yield a net $7.51 million draw-down of fund balance as of June 30, 2025. This represents a slight decrease ($1.3 million) over the year-end projections presented in the MidYear Budget Update. This stems from a decrease in year-end General Fund revenue estimate of $820,000 (primarily a downgrade of sales tax revenue estimates) and an increase in the year-end expenditures estimate of $500,000.

Table 2: FY 2024-25 General Fund Results (through 3/31/25) and Year-End Projections General Fund
Adopted Budget
FY 2024-25
Amended Budget
FY 2024-25
Actual Results
Through 3/31/25
% of Amended
FY2024-25
Budget
Projected YearEnd Results
Revenues $ 101,282,204 $ 101,282,204 $ 60,955,921 60.2% $ 102,382,517 $ 1,100,313 1.1% Transfers in 2,508,306 2,508,306 1,356,229 54.1% 1,908,306 (600,000) -23.9% Total Resources $ 103,790,510 $ 103,790,510 $ 62,312,150 60.0% $ 104,290,823 $ 500,313 0.5% Expenditures $ 102,033,257 $ 102,606,344 $ 74,735,598 72.8% $ 101,542,034 $ (1,064,310) -1.0% Operating Transfer out 10,258,500 10,258,500 9,252,625 90.2% 10,258,500 - 0.0% Total Appropriations $ 112,291,757 $ 112,864,844 $ 83,988,223 74.4% $ 111,800,534 $ (1,064,310) -0.9% Net Result $ (8,501,247) $ (9,074,334) $ (7,509,711) $ 1,564,623 Variance
PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 5 The projected year-end fund balances in excess of reserve levels established by City Council policy represent resources available for re-appropriation to address priority one-time funding needs and represent a significant portion of the available budget flexibility within the context of the FY 2025-26 budget and updated multi-year Capital Improvement Plan.

Specific funding recommendations related to the use of available fund balances are contained in the discussion of the Preliminary Proposed FY 2025-26 Budget.

PROPOSED FISCAL YEAR 2025-26 CITYWIDE BUDGET
FY 2025-26 Budget Highlights
❖ Citywide Budget: The total proposed FY 2025-26 expenditure budget for the City is $191,760,385. These appropriations are supported by FY 2025-26 revenue and other sources projected at $189,664,382, as well as by fund balances retained from previous periods for capital projects and priority initiatives (Exhibit I). The proposed FY 2025-26 appropriations reflect all new funding appropriations proposed for operations, capital projects, and debt service. These appropriations do not include current year funding that is anticipated to be carried forward to FY 2025-26 through roll-over of year-end encumbrances, as well as carry-over of unencumbered capital project funding that will require separate City Council action early in the new fiscal year. ❖ General Fund Budget: The proposed FY 2025-26 General Fund budget includes recommended appropriations of $113,356,822 representing an increase of $1.07 million over the prior year’s adopted budget. The proposed General Fund budget is supported by estimated General Fund revenues ($104,133,362), transfers in ($2,360,493), and available fund balance ($6,861,967).

Summary of Funding Recommendations
General Fund
The City’s General Fund supports most of the major services to residents and businesses (such as police, fire suppression and prevention, planning, building, library, parks, streets, engineering, traffic enforcement, cultural programs, and administration). The General Fund appropriations for FY 2025-26 total approximately $113.36 million. These appropriations comprise $104.65 million of operating expenditures and $8.71 million in transfers to other funds.

Table 3 summarizes the information provided in Exhibit II and presents the proposed FY 2025-26 budget with a comparison to the projected FY 2024-25 budget. The table presents the year-overyear change in revenues and expenses, as these are key metrics.

PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 6 Table 3: Comparison of FY 2024-25 Adopted and FY 2025-26 Proposed General Fund Budget
Revenues and transfers available to support the FY 2025-26 General Fund budget are projected to be $2.70 million (2.6%) higher than the FY 2024-25 adopted budget. This is mainly due to conservative projected growth in major revenue items such as property tax and transient occupancy tax, flat revenue growth within sales and use taxes, as well as one-time revenues included in the current year budget.

The Proposed FY 2025-26 Budget operating expenditures within the General Fund represent an increase of $2.61million (2.6%) over the prior year’s adopted budget. Most of this increase is due to personnel costs consistent with terms of collective bargaining agreements with the City’s represented and unrepresented bargaining groups. General Fund personnel costs are anticipated to increase by approximately $4.5 million, offset by $1.9 million in reduced non-personnel costs (largely one-time funding provided within the FY 2024-25 budget). The FY 2025-26 Proposed Budget also includes an estimated $2.79 million in salary savings, based on a 3.5% vacancy factor being built into the FY 2025-26 General Fund operating budget.

The FY 2025-26 Proposed budget includes a limited amount of new expenses, which are listed below. Many of these expenses are related to the increasing cost of providing services, including increased costs of water, power, fleet management, dispatch services, and technology upgrades, the majority of which are not within the City’s control.

Adopted Proposed
FY 2024-25 FY 2025-26 $ %
Revenues $ 101,282,204 $104,133,362 $ 2,851,158 2.8%
Transfers-In 2,508,306 2,360,493 (147,813)
Total Resources $ 103,790,510 $106,493,855 $ 2,703,345 2.6% Expenditures $ 102,033,257 $104,646,405 $ 2,613,148 2.6% Transfers-Out 10,258,500 8,710,417 (1,548,083)
Total Uses $ 112,291,757 $113,356,822 $ 1,065,065 0.9%
Net Results $ (8,501,247) $ (6,862,967)
Use of Prior Period Funds
Liability Fund - Premiums/Claims 2,000,000 2,500,000
Capital Fund - Future CIP Projects 2,000,000 1,500,000
Capital Fund - Paving Streets/Roads 1,000,000 1,000,000 Vehicle Replacement - Replenish
Fund 1,000,000 1,000,000
Public Safety Equipment
Replacement 500,000
Stromwater Fund - SQPS/Master Plan 985,000
Enterprise Resource Planning Project 1,000,000
Racial Equity Initiatives 500,000
$ 8,985,000 $ 6,000,000
Net of Use of Prior Period Funds $ 483,753 $ (862,967)
Change from Previous Year General Fund
PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 7 General Fund FY 25-26 New Expenditure Recommendations
In addition, the FY 2025-26 Proposed Budget includes recommended transfers out of the General Fund totaling $8.7 million to support other funds (i.e., liability, capital, vehicle/equipment replacement funds) that have been historically underfunded. This includes operating transfers of $2.71 million supporting programs and projects and $6.0 million from assigned fund balance to augment funds with significant unfunded liabilities. Significant additional funding will be required in the coming years to support unfunded liabilities, deferred maintenance, capital replacements as well as fleet and equipment replacement needs.

Operating Transfers:
• Recreation Revolving Fund $2,420,000
• Measure E – Essential Facilities Project Fund 290,000 Use of Prior Period Funds (Fund Balance):
• Liability / Self-Insurance Fund $2,500,000
• Capital Projects Fund 1,500,000
• Capital Fund – Paving Streets/Roads 1,000,000
• Vehicle Replacement Fund 1,000,000
The appropriations are supported by $106.5 million in projected revenues and transfers from other funds. The $2.33 million of transfers include:
• $650,000 from the Gas Tax Fund to reimburse street maintenance personnel costs. • $500,000 from the Parking Services Fund to cover administrative support costs. • $680,313 from the Employee Benefits Fund for Pension Obligation Bond debt service.

Recurring:

Sustainability Program - staffing adjustments 18,000
Emergency Response PD -Technology (Software Licensing) 150,000 Fire Emergency Communications Contract 31,621
County Admin Fee and General Services Contracts 250,000 Total Recurring Augmentations $ 449,621
One-Time;
Records Management System $ 87,000
Elections - Increased cost (June 2026) 13,000
Organizational Development and Training 75,000
ADA Transition Plan (Phase 1) 100,000
Contract Services - Outside Legal Counsel 150,000
Public Safety (PD) - Bilingual Incentive 40,000
Citywide Utility, Fuel and Maintenance Costs 250,000
Library Consortium - One-time Assessment (Liability) 34,000 Total One-Time Augmentations $ 749,000
Capital Fund (401)
Gateway Beautification Project $ 165,000
PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 8 • $500,000 from the Cannabis Fund to support costs associated with the City’s SAFE Team program.

Revenue Trends and Assumptions:

Property Tax:

Property-related taxes are currently projected to increase by 4.1 percent over the original FY 2024-25 budget, to a total of $34.2 million. The increase is primarily due to growth in the overall property tax roll as well as an increase in the excess Educational Revenue Augmentation Fund (ERAF) payments. Property tax-related revenues account for 32 percent of the City’s General Fund revenues.

Sales and Transaction & Use Tax:

Overall sales and transaction and use taxes are expected to remain flat (less than 1.0% growth) in comparison to levels assumed in the FY 2024-25 budget. Previous projections assumed 3%- 4% annual increases, however recent results and economic forecasts point to a leveling-off of sales tax revenues in both the local and regional context. Staff are projecting recurring sales tax revenues (Bradley-Burns) to remain flat at $25.41 million. Sales taxes account for approximately 24 percent of the City’s General Fund revenues.

Revenues from the Measure E Transactions & Use Tax, which applies to most local retail sales, are estimated to increase by 0.6% to $14.61 million. Consistent with the direction provided by the City Council in May of 2014, the additional one-quarter percent sales tax revenues provided by Measure E, effective April 1, 2014 through March 31, 2034, are dedicated to funding major construction and improvements to essential facilities (also referred to as the San Rafael Essential Facilities project). Measure E revenues account for about 14 percent of the City’s General Fund revenues.

Revenues from the Measure R Transactions & Use Tax are projected to generate $5.0 million and represent about 5 percent of the City’s General Fund revenues. Altogether, sales and use taxes comprise 46 percent of the City’s General Fund revenues.

Other General Fund Revenues:

Other revenues (including Business Tax, Transient Occupancy Tax, development fees, permits, and charges for services) are projected to show an increase of 6.9 percent when compared to the prior year’s budget. The major contributors to this increase in year-over-year revenues are franchise fees, business licenses, and interest earnings. While permit and development-related fees are being conservatively estimated, staff anticipates the potential for increases in these revenue sources given the number and scope of projects in the development pipeline. As these projects move forward, fee revenues are anticipated to support increased costs of plan review, inspections, legal fees, and other development support services.

Expenditure Trends and Assumptions:

The expenditure growth reflected in the FY 2025-26 Proposed budget stems primarily from increased personnel costs consistent with the terms of the three-year collective bargaining agreements entered into at the start of FY 2024-25. These increases are a direct result of a concerted effort to enhance the City’s recruitment and retention efforts in an exceptionally competitive labor market. General Fund personnel costs are projected to increase by $4.5 million (6.2%) over the level provided for in the FY 2024-25 budget. This increase, while outpacing General Fund revenue growth, is accommodated by reductions in contract services and a continuation of incorporating salary savings from vacancies as part of the FY 2025-26 budget.

PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 9 General Fund budgeted contributions to the Marin County Employees Retirement Association (MCERA) are projected to increase by $1.2 million, or 3.8 percent, compared to the previous year.

Overall, a slight decrease in employer contribution rates for FY 2025-26 are offset by increases in pensionable compensation resulting from collective bargaining agreements. In FY 2022-23, the City Council approved a one-time transfer of $1.1 million to the Employee Retirement Internal Service Fund to ensure continuity of programs over the long term. The fund is adequately supported at this time, and staff are not proposing an additional transfer for FY 2025-26. Pension expenses across all funds are budgeted at $25.97 million, representing approximately 23 percent of the total citywide personnel budget.

Other Funds Highlights
Special Revenue Funds
These funds have restricted uses based on their respective sources. While several special revenue funds are generally entirely self-supporting, many also require varying levels of contribution from the City’s General Fund to support programs, services, and projects. The following section presents FY 2025-26 Proposed Budget highlights:

EMS/Paramedic Fund
The Emergency Medical Services/Paramedic Fund has planned expenditures of $10.2 million for the upcoming fiscal year, supported by $9.6 million in revenues of which $5.4 million, or 56 percent, comes from the Paramedic Tax. The balance of the funding of this activity comes primarily from third-party recovery for emergency medical response and transport services. As of April 17, 2023, tax rates have reached their tax ceiling for all participating areas impacted by the Paramedic Services Special Tax.

The FY 2025-26 Proposed Budget reflects a portion of the incremental cost of year-two costs of the new consolidated Marin County Fire Dispatch model ($64,260) as well as increased costs of third-party ambulance billing services ($60,000).

The EMS/Paramedic Fund is projected to retain $1.5 million in unallocated fund balance as of June 30, 2026. This balance serves as an operational reserve. Funds not needed for the operations reserve are used to fund capital improvements that directly support the delivery of emergency medical transport services. This fund balance is expected to be exhausted within the next two years as annual operational costs exceed current Paramedic Tax revenues, therefore additional revenue sources will be needed in order to maintain service levels.

Cannabis Business Tax Fund
The City’s Cannabis Business Tax is also reported in a special revenue fund. San Rafael has several licensees in active commerce. The City anticipates the receipt of $110,000 in cannabis business tax revenues for the FY 2025-26. This represents a decrease of $115,000 from the level assumed in the FY 2024-25 budget due to Council action (February 18, 2025) to further reduce the tax rate applied to retail delivery licenses. The FY 2025-26 Proposed Budget provides for $195,553 in expenses supporting administration of the City’s Cannabis License program. The fund has historically carried a fund balance of prior year savings to allocate to new projects. On January 17, 2023, the City Council approved the use of cannabis tax revenues to support the pilot mobile mental health crisis team, Specialized Assistance for Everyone (SAFE). A transfer of $500,000 from the Cannabis Fund to the General Fund is included in the FY 2025-26 Proposed Budget to cover the majority of contract costs for SAFE.

PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 10 Measure A - Open Space
The Measure A Open Space Program was renewed by voters in June 2022. Funding for this program is primarily provided by a nine-year, county-wide sales tax that is managed by the County of Marin, with the City providing discretionary contributions as needed. A total of $400,000 is being proposed in the FY 2025-26 capital budget to be expended during the year to fund project initiatives, which would include the following projects:
• Peacock Gap Park & Freitas Park Tennis Court Resurfacing Measure D – Library Parcel Tax
Measure D, the successor library parcel tax to Measure C, is entering its eighth year. This special revenue source has successfully expanded service levels relative to those established under Measure C (the previous library parcel tax). The purpose of the tax is to “augment the capacity of the City of San Rafael to provide quality library services to its residents.” Measure D provides for expanded book and periodical purchases, including e-books; funds events and classes for all ages, and provides supplementary technology supplies. Capital reserves were established under Measure C (previous library parcel tax) for facility-related uses.

The FY 2025-26 Proposed Budget includes $340,000 in funding augmentations in Measure D funding supporting Library services. These augmentations support costs associated with the work being completed at the Main Downtown Branch Library as well as the planned renovation at the Pickleweed Branch Library.

Recreation Revolving Fund
The FY 2025-26 Proposed Budget includes appropriations totaling $4.96 million, which is supported through recreation program revenues of $2.25 million and an operating transfer from the General Fund of $2.42 million. General Fund support for the Recreation Revolving Fund is projected to remain at the level of support provided in the FY 2024-25 budget. Staff is proposing adjustments to selected recreation program fees to ensure program revenues continue to meet the current level of cost-recovery. Funding is proposed within the FY 2025-26 budget ($45,000) to undertake a comprehensive Recreation program fee study and establish a formal policy on cost-recovery for recreation programs.

Childcare Fund
The Childcare Fund is proposed to include expenditure appropriations of $3.52 million for FY 2025-26, supported by program revenues of $3.34 million and the use of $176,000 in available fund balance. While the Childcare Fund generally operates under full cost recovery, personnel costs for FY 2025-26 are expected to exceed the program revenues. A modest fee increases is required to maintain full cost-recovery for the fee-supported Childcare program.

Measure C – Marin Wildfire Prevention
Activities supported by the Measure C – Wildfire Prevention Fund are funded by a ten-year parcel tax managed by the Marin Wildfire Prevention Authority, a Joint Powers Authority (MWPA). The City of San Rafael is expected to receive $3.91 million in revenues to support coordinated wildfire prevention including early detection, warning and alerts; reducing vegetation; ensuring defensible space around homes, neighborhoods and critical infrastructure; and improving disaster evacuation routes/procedures. Included in this funding allocation is $1.77 million, representing core MWPA programs administered by the City of San Rafael and reimbursed by the MWPA.

Other significant funds within the Special Revenue category include Gas Tax and Storm Water Funds. The spending plans for these funds were developed in conjunction with the Capital Improvement Program. In the absence of a dedicated funding source to support Storm Water PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 11 Fund maintenance and capital needs, the General Fund has been required to support these activities, totaling $500,000 in the FY 2025-26 Proposed Budget. Appropriations for new CIP projects are included in the Proposed Budget and discussed in the Capital Improvement Plan section of this report.

Capital Funds
Measure P – Library and Community Center
The FY 2025-26 Proposed Budget includes establishment of a new Capital Fund to account for revenues and expenditures related to Measure P, a new parcel tax approved by the voters at the November 2024 general election. Measure P is restricted to funding planning, design and construction of a new Main Library and Community Center as well as renovation and expansion of branch libraries. The FY 2025-26 Proposed Budget reflects estimated revenues of $6.32 million as well as initial appropriations of $1.63 million in support of the project.

A discussion of Capital Fund appropriations included in the FY 2025-26 Proposed Budget are included in the Capital Improvement Program section of this report.

Enterprise Funds
Parking Fund
The Parking Fund is a self-sustaining enterprise fund whose revenues are dedicated to parking services. Currently, parking operations are funded via parking fees and fines, and fund balance is the only resource with which to cover capital improvements. The FY 2025-26 Proposed budget for this fund is $4.79 million, inclusive of operating transfers, supported by $4.80 million in revenues. The Parking Fund has generally rebounded from the negative effects of the pandemic and reflects a slightly positive fund balance for the new fiscal year. However, the fund continues to lack sufficient funding to support program expansion, and deferred maintenance needs.

Internal Service / Capital Equipment Replacement Fund
These funds are used to manage services that are delivered within the organization. For example, computer replacement, employee benefits, workers’ compensation, general liability, capital replacement, technology replacement, and vehicle replacement are funded via internal charges to the funds that utilize these respective services. The following reflects highlights of the FY 2025- 26 Proposed Budget within selected Internal Service Funds:

Building Maintenance Fund
• Engineering support for EV Charging Station Project $163,000 Vehicle Replacement Fund
• Vehicle Replacements per Replacement Schedule $430,000 Technology Fund
• Implementation of new Technology Projects $295,000
• Enterprise Infrastructure 495,000
• Enterprise Software Projects 285,000
Fire Equipment Replacement Fund
• Hoses / nozzles $325,000
• Turnouts 50,000
PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 12 Liability / Self Insurance Fund
• Increased funding for Insurance Premiums and $500,000 Insurance Pool contributions
• Increased funding to support legal and risk 113,000
management staff costs
Capital Improvement Program (CIP)
The CIP is a multi-year planning tool used to identify and implement the City’s capital needs over a three-year period. As part of the annual budget process, staff updated the multi-year CIP for FY 2025-26 through FY 2027-28. The first year, FY 2025-26, of the updated plan informs the new capital budget appropriations to be included as part of the FY 2025-26 Adopted Budget. See Exhibit V. In addition, as part of the fiscal year-end process, which concludes in early Fall, staff will be seeking City Council authorization to carry forward capital project appropriations for projects funded in the current fiscal year 2024-25, to the extent that these funds are required to complete projects currently in process. Funding approved for carry-over into the new fiscal year will supplement the capital project funding approved with the FY 2025-26 Adopted Budget.

The annual update of the multi-year Capital Improvement Plan involves several steps:
1) Starting with the review of the latest Council-approved multi-year capital plan for currently active and previously planned projects, and updating project cost estimates and funding sources, as appropriate.
2) The capital plan is then updated to reflect new projects. These may include projects previously identified as “unfunded,” projects identified through various master plans, projects supporting infrastructure projects being undertaken by other agencies, and projects requested by the broader community.
3) The updated list of capital improvement projects is then evaluated based on established ranking criteria, with the highest-ranked projects being included in the multi-year plan within the constraints of funding availability and staff capacity. 4) Projects that are not reflected in the updated multi-year capital plan are retained on the list of infrastructure needs as either “future year” or “unfunded” projects.

The resulting CIP planning document summarizes the City’s planned capital and infrastructure improvement projects, including estimated cost, funding sources, and ranking scores following analysis and coordination with other City departments to ensure that all department needs are considered and represented.

Project selection and priority are based on recommendations by a working group representing various City departments and existing planning documents to accommodate high priority needs, which focused on life/safety, maintenance and repair, equity, community, and City Council input, and other factors. The CIP is intended to provide a comprehensive three-year project list for the City’s known capital and infrastructure needs.

The general categories within the CIP are as follows:
• Annual Programs: Annual programs are comprised of a variety of activities, including implementation of smaller projects and small budget projects that need immediate attention, routine projects to maintain City infrastructure, development of concept designs PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 13 to support the pursuit of grant funding, implementation of pilot projects, and low to medium level planning efforts.
• Building/Facilities: City-owned properties include buildings (e.g., City Hall, libraries, recreation centers, etc.) and facilities (e.g., parking garages and lots). • Parks: Park infrastructure and facilities, including playgrounds, sports fields and courts, recreation equipment, and restrooms.
• Storm Drain: Storm drain systems include conveyance of storm drainage, catch basins, manholes, and the City’s twelve stormwater pump stations. • Transportation: Street improvements, including construction, resurfacing, and maintenance of existing roadways, intersections, connections to transit, and bicycle and pedestrian facilities, such as bike lanes and sidewalks. This category also includes streetlight, traffic-related, and traffic signal improvements, which include enhancements that increase traffic flow and capacity, improve circulation, and expand bicycle and/or pedestrian thoroughfare beyond the existing facilities in place (e.g., new multi-use pathways and the expansion of existing sidewalks).

Proposed FY 2025-26 Capital Improvement Project Highlights The proposed Capital Improvement projects listed below will be considered by the City Council for adoption at the June 2nd Council meeting.

1. A.J. Boro Community Center: Police Department Substation Upgrade

2. City Hall Building Envelope Maintenance Upgrades

3. Citywide Building and Facilities Plan

4. Fire Station 54 & 44 Technology / Radio Upgrades

5. Fire Station 56 Building Envelope Improvements

6. Lincoln Ave from Second St to Paloma Ave Safety Improvements

7. Los Ranchitos Park Sewer Line Replacement

8. Public Safety Center Evidence Storage

9. Second St Utility Undergrounding (Phase 2)

10. Welcome Gateways
The following table summarizes the funds that provide the majority of resources available to support the City’s Capital Improvement Program (CIP):

PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 14 Table 3: CIP Funding Sources
Fund # Fund Name Description
205 Stormwater
Fund
Established to fund stormwater maintenance, programs, and improvements throughout the City. Fund 205 receives annual revenues from the City’s Stormwater Activity Fee (Municipal Code Chapter 9.40).
206 Gas Tax The Gas Tax fund includes revenues from the following sources:
• Senate Bill 1 [SB 1, Highway Users Tax Account (HUTA) and Road Maintenance and Rehabilitation Account (RMRA)]
• Construction Impact Fee
• Refuse Impact Fee
• Transportation Authority of Marin (TAM) Measure AA, A, and B SB1 revenue is collected and subsequently distributed by the State of California based on a percentage tax on each gallon of gas purchased in San Rafael. 214 Library Revolving
Fund
The Library Revolving Fund consists of donations and grants received to support Library operations, programs, services, and infrastructure. In FY 2025-2026, the Fund 214 budget is primarily the California State Library Building Forward Grant and associated City match from Library Memorial Funds for the renovation of the Pickleweed Branch Library. 241 Measure A Measure A is a nine‐year, ¼ percent Transactions and Use Tax managed by the County of Marin and re-approved by voters in June 2022. The Tax is restricted to the care of parks and open spaces. The Department of Library and Recreation prepared the Measure A work plan for FY 2024-25 based on the recommendations provided in the 2023 Citywide Parks and Recreation Master Plan and through consultation with the Parks and Recreation Commission.
246 Traffic Mitigation
Fee Fund
Traffic Mitigation Fees are charged to a developer in connection with the approval of a private land development project with the purpose of offsetting or subsidizing public improvements made necessary by the private development. The City utilizes Traffic Mitigation Fees for circulation‐related projects identified in the General Plan. 401 Capital
Improvement
Fund
The Capital Improvement Fund is funded primarily through the City’s General Fund and provides discretionary funding support for capital projects that lack a dedicated funding source, as well as projects where either a local match or supplemental funding is required. Transfers from the General Fund to the Capital Improvement Fund stem primarily from available year-end fund balances in excess of the City’s reserve policy requirement.
420 Essential
Facilities Fund
The Essential Facilities Fund was established by the City Council in order to allocate onethird ($0.25) of the City’s Measure E ($0.75) Transaction and Use Tax receipts to support capital investments to replace or renovate essential facilities supporting public safety operations.
430 Measure P In November 2024, San Rafael voters passed Measure P, an initiative to fund a new main library and community center at Albert Park. Measure P established a non-ad valorem parcel tax for the purpose of building these facilities, representing a significant investment in the City's cultural and civic institutions. In addition to a downtown library and community center, the proceeds from Measure P can also be used for improvements and expansion at San Rafael’s branch libraries.
603 Building
Maintenance
The Building Maintenance Fund supports routine maintenance and capital projects associated with the City’s buildings, parks and other facilities. The Building Maintenance Fund is an internal revenue fund, which means General Fund monies are the sole source of revenue.

While a portion of the FY 2025-26 CIP budget is grant-funded (approximately $3.4 million), the respective grant match and non-grant funded projects are paid for through Funds 205 (Stormwater), 206 (Gas Tax), 241 (Parks Measure A), 246 (Traffic Mitigation Fee), 420 (Essential Facilities), 430 (Measure P) and 603 (Building Maintenance). Funds 205, 206, and 603 also have their respective operating budget, which consists of expenses related to maintenance of PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 15 infrastructure, equipment purchasing, miscellaneous contractual services, and other non-project related work.

The long-term capital and infrastructure operational, maintenance, and improvement needs for City-owned property, parks, roads, and drainage far exceed the available revenues each year.

Therefore, a considerable number of projects are identified as real capital and infrastructure needs (and maintained on the CIP project list) but are categorized as “unfunded”. City staff continue to actively pursue grant funding, congressional earmarks, and other infrastructure funding sources. Many of these funding sources require a local funding match. If the City’s effort to obtain grant funding is successful, the projects with secured funding will be re-evaluated for their ranking on the CIP projects list.

As a part of the annual CIP, the Department of Public Works also recapitulates major projects completed in the prior fiscal years, including but not limited to:

1. A.J. Boro Community Center: Fire System Backflow Prevention Device Installations

2. B Street Culvert Replacement & Resurfacing

3. Center Street Curb Ramps

4. Fremont Rd and Marquard Ave Minor Concrete Repairs

5. FY 2023-24 & FY 2024-25 Traffic Signal System Backup Battery Installations and Replacements

6. FY 2024-25 Corrugated Metal Pipe Replacement

7. FY 2024-25 (West San Rafael) Pavement Maintenance project Projects pending completion include:

1. Downtown Library Modernization

2. Los Gamos Dr Bicycle & Pedestrian Enhancements

3. Peacock Gap Park Playground Improvements

4. Pickleweed Park Enhancement & Field Renovation

5. San Quentin Pump Station Reconstruction
Summary of FY 2025/26 Proposed Capital Improvement Program Budget Category FY 2025-26
Annual Programs – Capital
Stormwater $100,000
Transportation $4,650,000
Sub-Total Annual Programs $4,750,000
Buildings / Facilities
Buildings $400,000
Essential Facilities $880,000
Recreation $3,525,000
Sub-Total Buildings / Facilities $4,805,000
Parks $615,000
Stormwater $1,135,000
Transportation $4,114,204
*TOTAL $15,419,204
PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 16 Funding Sources FY 2025-26
Stormwater Fund (205) $685,000
Grant Funds $585,000
Sub-Total Stormwater Fund (205) $1,235,000
Gas Tax Fund (206) $6,908,294
Grant Funds $2,755,910
Sub-Total Gas Tax Fund (206) $8,764,204
Measure A (241) $400,000
Capital Improvement Fund (401) $165,000
Essential Facilities Fund (420) $880,000
Measure P (430) $1,500,000
Building Maintenance Fund (603) $2,475,000
TOTAL $15,419,204
*Figures exclude operations and maintenance costs.

Status of Pension Funding
The City’s Pension Funding Policy requires that the Finance Director and City Manager report on the status of pension funding as part of the annual budget adoption process.

The most recent pension actuarial valuation was prepared as of June 30, 2024, and approved by the Marin County Employee’s Retirement Association (MCERA) Board in February 2024. This valuation was used to determine the contribution rates for FY 2025-26. The composite rate for the City will be 55.83 percent, a 0.93 percent decrease from the current rate of 56.76 percent.

The budgeted pension contribution for FY 2025-26 provides full funding for the required contribution. The rate for public safety employees decreased from 69.44 percent to 68.90 percent, a decrease of 0.54 percent. The rate for miscellaneous employees decreased from 44.37 percent to 43.08 percent, a decrease of 1.29 percent. The valuation also reported an unfunded actuarial liability of $115 million for the City, representing a funded ratio of 83.1 percent.

MCERA’s investment target (discount rate) remained at 6.75 percent during the measurement period. The City has dedicated a portion of its employee retirement reserve to buffer the impact of any unexpected increases. This reserve, which is projected to total $1.7 million at the end of FY 2024-25, is also used to accumulate payments for debt service on the $4.5 million pension obligation bonds issued in 2010 and for optional, supplementary payments to MCERA.

Status of Other Postemployment Benefit (OPEB) Funding (Retiree Healthcare) The City’s OPEB Funding Policy was adopted on September 18, 2017. The policy cites the City’s goal of fully funding the Actuarially Determined Contribution (ADC) each year. The budgeted OPEB contribution for FY 2025-26 provides full funding for the required contribution. The contribution is based on an investment target (discount rate) of 6.25 percent. The most recent actuarial valuation, as of June 30, 2024, reports $27 million in plan assets offset by $47.8million in actuarially accrued liabilities, leaving an unfunded actuarial liability of $20.8 million. The City’s ADC for FY 2025-26 is $2.8 million.

General Fund Balance and Reserves
The FY 2025-26 proposed budget would maintain General Fund reserve levels consistent with the update reserve policy approved by the City Council concurrent with adoption of the FY 2024- 25 budget. The current policy target reserve level includes 10% for emergencies ($10,648,000) and 5% for economic uncertainties ($5,324,000), as of June 30, 2026.

PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 17 In addition, the City’s capital reserve is maintained at $1,000,000, consistent with the reserve policy. This reserve serves as a buffer against unanticipated capital projects that may require supplemental support from the General Fund.

The FY 2025-26 Proposed Budget includes recommendations for allocations of projected excess fund balance expected to be available as of June 30, 2025, consistent with the policy guidelines established in the reserve policy, as follows:
• Payments toward unfunded liabilities, deferred maintenance, and asset replacement. • Transfers to other funds, as appropriate, to offset year-end deficits within those funds. • Allocations to capital projects with shortfalls in funding sources and/or to provide matching funds for grant awards.
• Re-appropriation within the subsequent year’s operating budget to provide for one-time, non-recurring needs.

Based on the projections and recommendations contained in the FY 2025-26 Proposed Budget, the General Fund budget is effectively balanced with ongoing revenues supporting ongoing appropriations. As noted in this report, a significant allocation of available fund balances ($8.71 million) is proposed to be either transferred to various special revenue and capital project funds or appropriated in the budget year for priority one-time projects and expenses.

STAFFING
The Preliminary Proposed FY 2025-26 budget supports an authorized staffing level of 416.15 fulltime equivalent positions, representing an increase of 0.44 FTE from the level authorized in the Mid-Year Budget Update, and a net reduction of 0.19 from the level authorized via adoption of FY 2024-25 Final Budget. (This level of staffing represents a net reduction of 9.91 FTE when compared to the FY 2023-24 Adopted Budget).

Through the process of developing the Proposed 2025-26 budget, the Human Resources Department implemented the following classification adjustments as warranted to provide for effective management and delivery of City services. This results in a net increase in permanent full-time equivalent (FTE) positions of 0.44. The City will notify impacted labor organizations of these proposed changes and will offer to meet and confer with these groups to discuss these changes prior to bringing the FY 2025-26 Budget to the City Council for adoption. 1) Community & Economic Development (-1.0 FTE)
a. The Permit Technician position is being transferred from Community & Economic Development to the City Clerk’s office..
2) City Clerk (+1.0 FTE)
a. Using the position transferred from Community & Economic Development, the City Clerk’s Office will add a new position following an organizational assessment that was completed, which identified a need for an additional resource to assist with increased workload related to Public Records Act requests. 3) Public Works (+1.0 FTE)
a. Convert the existing Senior Project Manager position to Senior Management Analyst II to provide more administrative support to the overall Public Works operation.

PRELIMINARY FISCAL YEAR 2025-26 PROPOSED BUDGET / Page: 18 b. Creation of a Senior Project Manager – Capital Projects classification, establishment of a salary range, and creation of a position in Public Works to be funded partly by Measure P.
c. Flexible staff change of an Associate Engineer to a Senior Civil Engineer to balance project workloads and supervision.
d. Convert the existing Street Maintenance Worker II to Sweeper Operator. 4) Sustainability (-0.56 FTE)
a. Creation of a Climate Adaptation & Resilience Planner classification and establishment of a salary range.
b. Better internal alignment of the Sustainability Manager salary range c. Elimination of vacant Volunteer Coordinator (0.56 FTE) 5) Digital Services and Open Government
a. Convert one Advanced Professional Temp position to a Data Analyst III.

FISCAL IMPACT:

The preliminary Fiscal Year 2025-26 budget has been prepared for all funds. Funding sources are sufficient to support the preliminary spending plans presented. There is no fiscal impact associated with the acceptance of this report.

RECOMMENDED ACTION:

ATTACHMENTS:

Exhibit I – FY 2025-26 Proposed Budget (Revenues and Expenditures by Fund) Exhibit II – FY 2025-26 All Funds Proposed Budget (Revenues, and Expenditures) with comparison to FY 2024-25 Adopted Budget (Revenues and Expenditures by Fund Exhibit III – FY 2025-26 General Fund Proposed Budget (Revenues, and Expenditures) with comparison to FY 2024-25 Adopted Budget
Exhibit IV – Summary of FY 2025-26 Authorized Staffing (Full-Time Equivalents) Exhibit V – Proposed Capital Improvement Program Summary FY 2025-28

ALL FUNDS
PROPOSED BUDGET FY 2025-26
Revenues and Expenditures

EXHIBIT II
FY24-25
Adopted Budget
FY25-26
Proposed Budget
%
Change $ Change

REVENUES & OTHER SOURCES
Taxes $ 92,203,844 $ 100,791,808 9.3% $ 8,587,964
Licenses and Permits 2,950,488 3,118,196 5.7% 167,708
Fines and Forfeitures 2,703,400 2,734,000 1.1% 30,600
Use of Money 4,316,047 4,391,372 1.7% 75,325
Intergovernmental 34,257,592 25,717,366 -24.9% (8,540,226) Charges for Services 21,895,413 22,868,953 4.4% 973,540 Other Revenues 18,990,255 18,866,779 -0.7% (123,476)
Transfers In 13,211,806 11,175,910 -15.4% (2,035,896)
TOTAL SOURCES $ 190,528,845 $ 189,664,385 -0.5% $ (864,460)

EXPENDITURES AND OTHER USES
Expenditures by Department
Finance 4,106,626 3,463,855 -15.7% (642,771)
Non-Departmental 11,971,375 7,879,210 -34.2% (4,092,165) City Manager/City Council 4,925,600 6,662,830 35.3% 1,737,230 City Clerk 783,037 1,029,218 31.4% 246,181
Digital Service 7,293,970 6,602,843 -9.5% (691,127)
Human Resources 15,447,709 14,521,743 -6.0% (925,966)
Parking 4,207,107 4,238,412 0.7% 31,305
City Attorney 1,452,736 1,646,060 13.3% 193,324
Community Development 8,671,825 8,513,342 -1.8% (158,483) Police 29,611,936 32,176,840 8.7% 2,564,904
Fire 38,515,080 40,052,809 4.0% 1,537,729
Public Works 49,769,988 38,851,146 -21.9% (10,918,842)
Library 9,763,573 5,323,705 -45.5% (4,439,868)
Recreation 9,855,741 9,622,465 -2.4% (233,276)
Economic Development 1,224,963 - -100.0% (1,224,963)
Transfers out 13,211,806 11,175,910 -15.4% (2,035,896)
TOTAL USES $ 210,813,072 $ 191,760,385 -9.0% $ (19,052,686) NET OPERATING RESULTS $ (20,284,227) $ (2,096,000) -89.7% $ 18,188,226 Expenditure Category
FY24-25
Adopted Budget
FY25-26
Proposed Budget
%
Change
Salaries $ 56,841,038 $ 59,551,163
Fringe Benefits 42,928,249 46,436,747
Sub-Total Personnel $ 99,769,287 $ 105,987,910 6.2% 6,218,623 $ Services 56,284,093 38,060,306 -32.4% (18,223,787)
Supplies 4,150,738 4,025,434 -3.0% (125,304)
Utilities/Communications 3,077,950 2,766,790 -10.1% (311,160) Other 4,203,810 4,144,033 -1.4% (59,777)
Debt Service 5,603,882 5,707,156 1.8% 103,274
Assets Purchased 14,522,998 10,993,204 -24.3% (3,529,794) Internal Service Charges 9,988,508 8,899,644 -10.9% (1,088,864) Transfers 13,211,806 11,175,910 -15.4% (2,035,896)
Total Appropriations $ 210,813,072 $ 191,760,385 -9.0% $ (19,052,686)

GENERAL FUND
FY 2025-26 PROPOSED BUDGET
Revenues and Expenditures

EXHIBIT III
FY24-25
Adopted Budget
FY25-26
Proposed Budget % Change $ Change

REVENUES & OTHER OPERATIONAL SOURCES
Taxes
Property Tax and related $ 26,698,822 $ 27,808,576 4.2% 1,109,754 Sales Tax 25,253,524 25,409,165 0.6% 155,641
Sales Tax -Measure E 14,520,000 14,609,000 0.6% 89,000
Sales Tax -Measure R 4,840,000 5,014,000 3.6% 174,000
Franchise Tax 4,700,000 4,951,000 5.3% 251,000
Business Tax 2,600,000 2,800,000 7.7% 200,000
Transient Occupancy Tax 3,900,000 3,900,000 0.0% -
Other Agencies
CSA #19 Fire Service 2,591,262 2,881,425 11.2% 290,163
VLF Backfill 7,560,009 7,786,809 3.0% 226,800
Other Agencies (Prop 172, Owner Prop Tax, State Mandate, Other agencies) 1,557,133 1,245,565 -20.0% (311,568) Other Revenues
Permits & Licenses (building, electrical, encroachment, use, alarm) 2,950,488 3,118,196 5.7% 167,708 Fine & Forfeitures (traffic, vehicle, etc.) 203,400 234,000 15.0% 30,600 Interest & Rents (investment earnings, rents, etc.) 1,069,558 1,464,558 36.9% 395,000 Charges for Services (includes dev't fees and plan review) 2,480,008 2,455,953 -1.0% (24,055) Other Revenue (damage reimbursements, misc income) 358,000 455,115 27.1% 97,115 Sub-total: Revenues $ 101,282,204 $ 104,133,362 2.8% $ 2,851,158

TRANSFERS IN
Assessment District reimbursements
from Gas Tax 650,000 650,000 0.0% -
from Parking Services Fund - Admin. cost 477,993 477,993 0.0% - from Cannabis Fund - SAFE Team 700,000 550,000 -21.4% (150,000) from Employee Retirement Fund - POB debt payment 680,313 682,500 0.3% 2,187 Sub-total: Transfers In $ 2,508,306 $ 2,360,493 -5.9% $ (147,813) TOTAL SOURCES $ 103,790,510 $ 106,493,855 2.6% $ 2,703,345

EXPENDITURES AND OTHER OPERATIONAL USES
Expenditures by Department
Finance 2,628,380 2,522,311 -4.0% (106,069)
Non-Departmental 11,843,287 7,761,848 -34.5% (4,081,439) City Manager/City Council 3,945,027 5,247,283 33.0% 1,302,256 City Clerk 783,037 1,029,218 31.4% 246,181
Digital Service 2,209,402 2,418,447 9.5% 209,045
Human Resources 720,095 1,044,640 45.1% 324,545
City Attorney 1,330,633 1,353,983 1.8% 23,350
Community and Economic Development 6,436,280 6,644,753 3.2% 208,473 Police 28,207,683 30,995,951 9.9% 2,788,268
Fire 24,372,630 25,981,328 6.6% 1,608,698
Public Works 15,399,570 16,114,672 4.6% 715,102
Library 3,494,392 3,531,972 1.1% 37,580
Economic Development 662,841 - -100.0% (662,841)
Sub-total: Expenditures $ 102,033,257 $ 104,646,405 2.6% $ 2,613,148

OPERATIONAL TRANSFERS OUT
to Recreation Fund - Operating support 2,420,000 2,420,000 0.0% - to Essential Facilities Fund - Measure E 353,500 290,417 -17.8% (63,083) to Liability Fund 2,000,000 2,500,000 25.0% 500,000
to Capital Improvement Fund 2,000,000 1,000,000 -50.0% (1,000,000) to Stormwater 985,000 500,000 -49.2% (485,000)
to Gas Tax 1,000,000 1,000,000 0.0% -
to Vehicle Replacement Fund 1,000,000 1,000,000 0.0% -
to Police Equipment Replacement Fund 250,000 -100.0% (250,000) to Fire Equipment Replacement Fund 250,000 -100.0% (250,000) Sub-total: Transfers Out $ 10,258,500 $ 8,710,417 -15.1% $ (1,548,083) TOTAL USES $ 112,291,757 $ 113,356,822 0.9% $ 1,065,065 NET OPERATING RESULTS $ (8,501,247) $ (6,862,967) $ 1,638,280 Expenditure Category
FY24-25
Adopted Budget
FY25-26
Proposed Budget % Change
Salaries $ 41,305,774 $ 43,082,016
Fringe Benefits 29,790,481 32,533,113
Sub-Total Personnel $ 71,096,255 $ 75,615,129 6.4% $ 4,518,874 Services 11,849,929 10,948,383 -7.6% (901,546)
Supplies 1,451,992 1,523,480 4.9% 71,488
Utilities/Communications 1,888,650 1,603,150 -15.1% (285,500) Other 1,505,815 1,665,055 10.6% 159,240
Debt Service 5,326,792 5,440,792 2.1% 114,000
Assets Purchased - - 0.0% -
Internal Service Charges 8,913,824 7,850,416 -11.9% (1,063,408) Transfers 10,258,500 8,710,417 -15.1% (1,548,083)
Total Appropriations $ 112,291,757 $ 113,356,822 0.9% 1,065,065 FY2025-26 PROPOSED BUDGET

REVENUES AND APPROPRIATIONS BY FUND

EXHIBIT I

CITY OF SAN RAFAEL
346,929.00 346,929.00 298,012.00
4/23/2025 Total Total Total
FY 2024-25 PROJECTED BUDGET Est.Actual Operating Operating Capital June 30, 2026 FUND FUND June 30, 2025 and Capital Transfers Total Transfers to Total Projected # NAME Balance Revenue In Resources Budget Budget Other Funds Appropriations Balance GENERAL OPERATING FUNDS:
001 General Fund Available Balance $24,982,043 $104,133,362 $2,360,493 $106,493,855 104,646,405 - 8,710,417 113,356,822 $18,119,076 218 General Plan Special Revenue Fund 1,904,449 659,391 - 659,391 783,450 - - 783,450 1,780,390 SPECIAL REVENUE & GRANT FUNDS:
205 Storm Water Fund 659,165 1,539,010 - 1,539,010 703,992 1,235,000 - 1,938,992 259,183 206 Gas Tax 1,711,754 9,946,300 1,000,000 10,946,300 1,400,000 8,764,204 650,000 10,814,204 1,843,850 207 Development Services 3,282 - - - - - - - 3,282
208 Child Care 484,708 3,339,986 - 3,339,986 3,516,635 - - 3,516,635 308,059 210 Paramedic/EMS 2,044,762 9,599,809 - 9,599,809 10,105,208 - - 10,105,208 1,539,363 216 Cannabis 736,430 142,199 - 142,199 145,373 - 550,000 695,373 183,256 217 State Lands Fund 505,831 54,819 - 54,819 - - - - 560,650 222 Recreation Revolving 175,423 2,406,578 2,420,000 4,826,578 5,001,007 - - 5,001,007 994 223 Household Haz. Waste Fund - - - - - - - - -
228 Hazardous Materials Fund 55,251 - - - - - - - 55,251 234 Pt. San Pedro A.D. Maintenance Portion 230,310 127,037 - 127,037 183,186 - - 183,186 174,161 235 Baypoint Lagoons L & L Assessment District 48,420 32,693 - 32,693 34,700 - - 34,700 46,413 236 Loch Lomond CFD #10 857,463 57,887 - 57,887 28,855 - - 28,855 886,495 237 Loch Lomond Marina CFD #2 1,098,869 332,841 - 332,841 150,030 - - 150,030 1,281,680 240 Parkland Dedication 381,323 11,390 - 11,390 375,000 - - 375,000 17,713 241 Measure A Open Space 390,154 1,209,270 - 1,209,270 - 400,000 - 400,000 1,199,424 242 Measure C Wildfire Prevention 116,077 3,945,872 - 3,945,872 3,946,917 - - 3,946,917 115,032 495 Low and moderate Income Housing Fund 1,844,639 3,266 - 3,266 85,770 - - 85,770 1,762,135 LIBRARY AND FALKIRK:
214 Library Revolving 501,882 104,376 - 104,376 192,392 - - 192,392 413,866 215 Library Special Assessment Fund 394,636 1,259,143 - 1,259,143 1,599,341 - - 1,599,341 54,438 Library Fund 896,518 1,363,519 - 1,363,519 1,791,733 - - 1,791,733 468,304 PUBLIC SAFETY:
200 Abandoned Vehicle 2,429 85,000 105,000 190,000 190,505 - - 190,505 1,924 202 Asset Seizure 3,704 - - - - - - - 3,704
204 Crime Prevention 8,573 - - - - - - - 8,573
230 Youth Services - Police 61,721 15,000 - 15,000 40,043 - - 40,043 36,678 Public Safety Fund 76,427 100,000 105,000 205,000 230,548 - - 230,548 50,879 TRAFFIC AND HOUSING:
243 Affordable Housing in lieu 2,952,204 1,070,529 - 1,070,529 - - - - 4,022,733 245 Housing & Parking In-lieu 389,545 10,849 - 10,849 - - - - 400,394 246 East S.R. Traffic Mitigation 332,339 390,619 - 390,619 400,000 - - 400,000 322,958 Traffic & Housing Mitigation Funds 3,674,088 1,471,997 - 1,471,997 400,000 - - 400,000 4,746,085 GRANT:
201 A.D.A.. Access Projects - - - - - - - - -
260 Pickleweed Childcare Grant 626,294 597,962 - 597,962 704,824 - - 704,824 519,432 281 Public Safety Grants 395,013 300,000 - 300,000 577,811 - - 577,811 117,202 283 Grant-Other 2,094,459 3,218,897 - 3,218,897 1,810,563 - - 1,810,563 3,502,793 Grant Funds 3,115,766 4,116,859 - 4,116,859 3,093,198 - - 3,093,198 4,139,427 SPECIAL REVENUE & GRANT FUND TOTAL 19,106,659 39,801,332 3,525,000 43,326,332 31,192,152 10,399,204 1,200,000 42,791,356 19,641,635

CONSOLIDATED FUNDS
https://cityofsanrafael.sharepoint.com/sites/Finance/Shared Documents/General/Accounting and Budgeting/Budget/25-26/Fund Sums FY26_Draft 202.05.12B FY2025-26 PROPOSED BUDGET

REVENUES AND APPROPRIATIONS BY FUND

EXHIBIT III

CITY OF SAN RAFAEL
346,929.00 298,012.00 346,929.00
4/23/2025 Total Total Total
FY 2024-25 PROJECTED BUDGET Est.Actual Operating Operating Capital June 30, 2026 FUND FUND June 30, 2025 and Capital Transfers Total Transfers to Total Projected # NAME Balance Revenue In Resources Budget Budget Other Funds Appropriations Balance

CONSOLIDATED FUNDS
ASSESSMENT DISTRICTS:

Var. Assessment District Projects 302,104 - - - - - - - 302,104 ASSESSMENT DISTRICT TOTAL 302,104 - - - - - - - 302,104 CAPITAL PROJECT FUNDS:
401 Capital Improvement 4,626,761 307,311 1,500,000 1,807,311 350,000 165,000 - 515,000 5,919,072 405 Open Space Acquisition 126,329 3,773 - 3,773 - - - - 130,102 406 Bedroom Tax 156,172 4,698 - 4,698 - - - - 160,870
407 Parks Capital Projects 21,861 - - - - - - - 21,861
420 Measure E - Public Safety Facilities 3,210,286 106,402 290,417 396,819 - 880,000 - 880,000 2,727,105 430 Measure P - Library Project - 6,320,000 - 6,320,000 125,000 1,500,000 - 1,625,000 4,695,000 CAPITAL PROJECT FUND TOTAL 8,141,409 422,184 1,790,417 2,212,601 350,000 1,045,000 - 1,395,000 8,959,010 ENTERPRISE FUND:
501 Parking Services 22,730 4,797,474 - 4,797,474 4,203,166 - 582,993 4,786,159 34,045 ENTERPRISE FUND TOTAL 22,730 4,797,474 - 4,797,474 4,203,166 - 582,993 4,786,159 34,045 INTERNAL SERVICE FUNDS:
227 Sewer Maintenance - 3,773,508 - 3,773,508 3,773,506 - - 3,773,506 2 600 Vehicle Replacement 6,645,630 1,459,633 1,000,000 2,459,633 430,000 - - 430,000 8,675,263 601 Technology Replacement 2,263,662 2,733,504 - 2,733,504 3,489,856 - - 3,489,856 1,507,310 602 Fire Equipment Replacement 1,255,089 167,985 - 167,985 506,000 - - 506,000 917,074 603 Building Improvement 6,945,698 1,208,543 - 1,208,543 363,000 2,475,000 - 2,838,000 5,316,241 604 Employee Benefits 498,427 734,049 - 734,049 822,754 - - 822,754 409,722 605 Liability Insurance 2,151,078 2,926,177 2,500,000 5,426,177 5,110,855 - - 5,110,855 2,466,400 606 Workers Compensation Insurance 2,038,178 3,397,762 - 3,397,762 3,680,585 - - 3,680,585 1,755,355 607 Dental Insurance 1,014,580 529,622 - 529,622 495,000 - - 495,000 1,049,202 608 Radio Replacement 374,824 462,105 - 462,105 550,000 - - 550,000 286,929 609 Telephone/Internet 467,688 613,797 - 613,797 694,540 - - 694,540 386,945 611 Employee Retirement 758,937 52,148 - 52,148 4,000 - 682,500 686,500 124,585 612 Retiree Health Benefit OPEB 1,385,179 4,221,281 - 4,221,281 3,660,000 - - 3,660,000 1,946,460 613 Police Equipment Replacement 448,919 56,906 - 56,906 130,000 - - 130,000 375,825 INTERNAL SERVICE FUND TOTAL 26,247,889 22,337,020 3,500,000 25,837,020 23,710,096 2,475,000 682,500 26,867,596 25,217,313 TRUST AND AGENCY FUNDS:
712 Library Fiduciary 671,258 17,709 - 17,709 - - - - 688,967 714 Pt. San Pedro Assessment District 235,001 - - - 155,002 - - 155,002 79,999 TRUST & AGENCY FUND TOTAL 671,258 17,709 - 17,709 155,002 - - 155,002 768,966 -
COMBINED FUNDS TOTAL 81,613,542 178,488,472 11,175,910 189,664,382 165,165,271 15,419,204 11,175,910 191,760,385 79,517,539 LESS: INTERFUND TRANSFER (11,175,910) (11,175,910) (11,175,910) (11,175,910) LESS: INTERNAL SERVICE CHARGES (17,328,639) (17,328,639) (17,328,626) (17,328,626) NET TOTALS FY 2024-25 81,613,542 161,159,833 - 161,159,833 15,419,204 147,836,645 - 163,255,849 79,517,539 https://cityofsanrafael.sharepoint.com/sites/Finance/Shared Documents/General/Accounting and Budgeting/Budget/25-26/Fund Sums FY26_Draft 202.05.12B

CITY OF SAN RAFAEL
Authorized Positions EXHIBIT IV
Adopted Final Adopted Mid-Yr
Proposed
Changes
Proposed
Budget
Departments 2023-2024 2023-2024 2024-2025 2024-2025 2025-2026 2025-2026 Regular
Community Development 23.00 24.00 26.00 (1.00) (1.00) 24.00 Community Services 56.90 43.98 43.98 (1.70) 42.28
City Attorney 3.50 3.50 3.50 3.50
City Clerk 2.00 2.00 2.00 - 1.00 3.00
City Manager/Council 10.56 12.56 12.56 3.00 15.56
Sustainability Division 1.00 1.00 1.00 (0.28) 0.44 1.16 Economic Development (Move to CDD) 1.00 2.00 - -
Finance 11.00 10.00 10.00 10.00
Fire 82.00 82.00 82.00 1.00 83.00
Library 21.96 21.96 21.96 (0.65) 21.31
Management Services 28.63 27.63 27.63 4.00 1.00 32.63
Police 93.00 93.00 93.00 93.00
Public Works 49.00 49.00 49.00 1.00 50.00
SRSD 17.00 17.00 17.00 17.00
Sub - Total Regular Positions 389.63 400.55 389.63 4.37 2.44 396.44 Change from previous year
Fixed Term
Community Development 1.00 1.00 1.00 (1.00) -
City Manager/Council 1.00 1.00 1.00 (1.00) -
Community Services 1.51 0.71 0.71 0.71
Economic Development (former RDA) 1.00 - - -
Finance 1.00 1.00 1.00 (1.00) -
Fire 11.00 11.00 11.00 (1.00) 10.00
Management Services 4.00 5.00 5.00 (2.00) (1.00) 2.00
Police - 1.00 1.00 1.00
Public Works 4.00 4.00 4.00 4.00
SRSD 1.00 2.00 2.00 - 2.00
Sub - Total Fixed-Term Positions 26.71 25.51 26.71 (5.00) (2.00) 19.71 Total Budgeted Positions 426.06 416.34 416.34 (0.63) 0.44 416.15 Authorized, unbudgeted - extended absence/no cost - - - - - - Total Authorized Positions 426.06 416.34 416.34 (0.63) 0.44 416.15 General Notes:

The above-authorized positions are presented as full-time equivalent employees (FTE's) based on various workweek hours as negotiated in employee agreements. The totals by department reflect a combination of full-time or permanent part-time, or fixed term positions that are entitled to all or pro-rated benefits in accordance with the negotiated agreements for employees or individuals who are under contract. The totals reflected above, or in the detail department program sections, do not include temporary or seasonal employees that are utilized for short-term or specific reasons during the year. https://cityofsanrafael.sharepoint.com/sites/Finance/Shared Documents/General/Accounting and Budgeting/Budget/25-26/0-City Council 25-26/May 19th/_Authorized Positions FY25-26 CIP Funding Tables
Annual Programs
CATEGORY PROGRAM TITLE FUND UPDATED FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Transportation Bridge Maintenance and Support Program 206 $ - $ 75,000 $ 100,000 $ 100,000 Transportation City-Led Sidewalk Repair Program (Non-Reimbursable) 206 $ 400,000 $ 300,000 $ 300,000 $ 300,000 Storm Drain Corrugated Metal Pipe Repair & Replacement Program 205 / 206 $ 375,000 $ 425,000 $ 400,000 $ 400,000 Transportation Pavement Management Program 206 $ 1,960,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 Transportation Public Hillside and Roadway Stability Program 206 $ 60,000 $ 300,000 $ 250,000 $ 250,000 Transportation Road Safety Implementation Program 206 $ 300,000 $ 650,000 $ 550,000 $ 550,000 TOTAL $ 3,095,000 $ 4,750,000 $ 4,600,000 $ 4,600,000

EXHIBIT V
CIP Funding Tables
Buildings / Facilities

PROJECT
NUMBER PROJECT TITLE FUND PRIOR YEARS' APPROPRIATION UPDATED FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 ESTIMATED TOTAL TO FY 2027-28 11422 A.J. Boro Community Center: HVAC & Roof Repair 603 $ 5,400 $ 250,000 $ 1,900,000 $ 250,000 $ 2,405,400 11439 Downtown Library Modernization 214/G $ 391,731 $ 2,758,269 $ - $ 3,150,000 11450 Pickleweed Preschool Replacement Portables 603 $ 25,000 $ 1,300,000 $ - $ 1,325,000 11428 Pickleweed Branch Library Redesign 214/G $ 251,210 $ 1,748,790 $ - $ 2,000,000 BF26-01 A.J. Boro Community Center: Police Department Substation Upgrade 420 $ 50,000 $ 50,000 BF26-02 A.J. Boro Community Center: Restroom Sinks 603 $ 50,000 $ 50,000 BF26-03 A.J. Boro Community Center: Settlement Assessment 603 $ 75,000 $ 75,000 BF26-04 City Hall Building Envelope Maintenance Upgrades 603 $ 100,000 $ 100,000 BF26-05 City Hall Fire Alerting System Upgrades 420 $ 200,000 $ 200,000 BF26-06 City Hall Layout Assessment 420 $ 150,000 $ 150,000 BF26-07 Citywide Buildings and Facilities Plan 603 $ 300,000 $ 300,000 BF26-08 Fire Station 54 & 55 Technology / Radio Upgrades 420 $ 80,000 $ 80,000 BF26-09 Fire Station 56 Building Envelope Improvements 420 $ 200,000 $ 200,000 BF26-10 Measure P: Main Library and Community Center 430 $ 1,500,000 $ 1,500,000 BF26-11 Public Safety Center Evidence Storage 420 $ 200,000 $ 200,000 TOTAL $ 6,057,059 $ 4,805,000 $ 250,000 $ - $ 11,785,400 Parks

PROJECT
NUMBER PROJECT TITLE FUND PRIOR YEARS' APPROPRIATION UPDATED FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 ESTIMATED TOTAL TO FY 2027-28 11460 Boyd Park Interim Playground Equipment 241 $ - $ 97,000 $ - $ - $ - $ 97,000 11436 Peacock Gap Park Playground 241 $ 145,005 $ 925,000 $ - $ - $ - $ 1,070,005 11376 Pickleweed Park Enhancement & Field Renovation 401 $ 814,341 $ 8,480,000 $ - $ - $ - $ 9,294,341 P26-01 Freitas Park and Peacock Gap Park Tennis Courts Resurfacing 241 $ - $ 400,000 $ - $ - $ 400,000 P26-02 Welcome Gateways 401 $ 165,000 $ - $ -
P26-03 Los Ranchitos Park Sewer Line Replacement 603 $ 50,000 $ - $ - $ 50,000 P27-01 Boyd Park Historic Cistern Assessment and Repair 241 $ - $ 130,000 $ - $ 130,000 $ 9,502,000 $ 615,000 $ 130,000 $ - $ 11,041,346

EXHIBIT VEXHIBI
CIP Funding Tables
Storm Drain

PROJECT
NUMBER PROJECT TITLE FUND PRIOR YEARS' APPROPRIATION UPDATED FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 ESTIMATED TOTAL TO FY 2027-28 11421 390 Canal Pump Station Generator Replacement 205/G $ 120,000 $ 66,190 $ - $ 600,000 $ - $ 786,190 11456.01 Canal Pump Station Trash Capture (MCSTOPPP SR-002) 205/G $ - $ 906,653 $ - $ 815,000 $ - $ 1,721,653 11435 Citywide Storm Drain Plan 205 $ 331,303 $ 347,803 $ 200,000 $ 340,000 $ - $ 1,219,106 11456.04 N. Francisco Pump Station Trash Capture (MCSTOPPP SR- 108) 205/G $ - $ 585,000 $ - $ - $ 585,000 11456.02 Redwood Hwy Trash Capture (MCSTOPPP SR-129) 205/G $ - $ - $ 2,009,000 $ - $ 2,009,000 11456.03 Rossi Pump Station Trash Capture (MCSTOPPP SR-143) 205/G $ - $ - $ 1,587,000 $ - $ 1,587,000 11334 San Quentin Pump Station Reconstruction 205 $ 7,922,733 $ 485,000 $ 100,000 $ - $ - $ 8,507,733 11456.05 San Quentin Pump Station Trash Capture (MCSTOPPP SR- 110) 205/G $ - $ - $ 1,865,000 $ - $ 1,865,000 SD26-01 Large Trash Capture Device Feasibility Study (MCSTOPPP SR-095, SR-152, SR-153) 205/G $ - $ - $ - SD26-02 Storm Drain Maintenance Environmental Compliance and Permitting 205 $ - $ - $ 250,000 $ - $ - $ 250,000 SD27-01 Loch Lomond Community Facilities District (CFD) 10 Basin Safety Improvement Design 236 $ - $ 15,000 $ - $ 15,000 SD27-02 Cayes Pump Station Short-Term Improvements 205
$ 200,000 $ 700,000 $ 900,000
SD27-03 Montecito Pump Station Rehabilitation Design
205
$ - $ 900,000 $ 900,000
SD28-01 Canal Pump Station Short-Term Improvements 205 $ - $ 600,000 $ 600,000 $ 832,803 $ 1,135,000 $ 6,916,000 $ 1,300,000 $ 18,437,839

EXHIBIT V
CIP Funding Tables
Transportation

PROJECT
NUMBER PROJECT TITLE FUND PRIOR YEARS' APPROPRIATION UPDATED FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 ESTIMATED TOTAL TO FY 2027-28 11446 Canal Active Transportation Experience Improvements 206/G $ - $ 1,289,034 $ 679,304 $ 4,740,396 $ 6,708,734 11457 Citywide Bicycle and Pedestrian Plan Update 206 $ - $ 266,710 $ 40,000 $ - $ 306,710 11451 Francisco Blvd East Mid-Block Crossing Enhancement 206/G $ - $ 734,233 $ 30,000 $ - $ 764,233 11453 Lincoln Ave/Brookdale Ave & Lincoln Ave/Wilson Ct Safety Improvements 206/G $ - $ 310,000 $ 175,000 $ - $ 485,000 11472 San Rafael Canal Crossing 206/G $ 50,000 $ 1,575,000 $ - $ 2,350,000 $ 3,975,000 11409 Second St and Fourth St Intersection Improvements 206/G $ 241,900 $ 4,427,385 $ - $ - $ 4,669,285 11463 South Merrydale Road – Civic Center Connector Pathway (aka Rafael Meadows Safe Crossing Pathway Project) 206/G $ 50,000 $ 1,222,228 $ - $ 450,000 $ 1,722,228 T26-01 Canal St Powerline Undergrounding - Medway Rd to Spinnaker Point Dr 206 $ - $ - $ - $ 2,400,000 $ 2,400,000 T26-02 Lincoln Ave from Second St to Paloma Ave Safety Improvements 206/G $ - $ - $ 2,839,900 $ - $ 2,839,900 T26-03 Second St Utility Undergrounding (Phase 2) - West St to Marquard Ave 206 $ - $ 300,000 $ - $ 300,000 T26-04 Third St Rehab Post Construction PGE Meter Upgrades 206 $ 50,000 $ - $ 50,000 T27-01 Canal Neighborhood Bellam Gateway Local Access Improvement 206/G $ - $ - $ - $ 8,560,000 $ 8,560,000 T27-02 Fourth St and West Crescent Dr Intersection Improvements 206 $ - $ - $ - $ 750,000 $ 750,000 T27-03 Lincoln Ave Bridge Rehabilitation 206/G $ 27,076 $ - $ - $ 200,000 $ 1,050,000 $ 1,277,076 T27-04 Lincoln Avenue Multi-Modal Rehabilitation (LRSP) - Paloma Ave to Los Ranchitos Rd 206 $ 20,000 $ - $ - $ 3,000,000 $ 3,020,000 T27-05
San Rafael North-South Greenway Gap Closure & Multi- modal Improvements - Mission Ave to Tamalpais Ave/Fourth St to Grand Ave (LRSP)
206/G $ - $ - $ - $ 5,443,955 $ 5,443,955
T27-06 Vision Zero Action Plan 206 $ - $ - $ - $ 150,000 $ 150,000 T27-07 Woodland Ave Safe Routes Project (Laurel Dell Elementary School) 206/G $ - $ - $ - $ 591,000 $ 591,000 T28-01 BPMP Rank-1: Project D-1 Downtown East-West connection: Feasibility study 246 $ - $ - $ - $ - $ 200,000 $ 200,000 T28-02 Fourth St Multi-modal Improvements - E Street to Tamalpais (LRSP) 206 $ - $ - $ - $ - $ 2,500,000 $ 2,500,000 T28-03 Manuel T. Freitas Parkway Class 1 (Multi-Use Path) (BPMP ID B-6, Rank-5) 206 $ - $ - $ 7,200,000 $ 7,200,000 T28-04 Multi-Use Path Civic Center SMART Station to Northgate 206 $ - $ - $ - $ - $ 500,000 $ 500,000 T28-05 Second Street Multi-Modal Improvements (LRSP) - Shaver St to Grand Ave (LRSP) 206 $ 50,000 $ - $ - $ - $ 3,000,000 $ 3,050,000 $ 9,874,110 $ 4,114,204 $ 19,144,955 $ 13,240,396 $ 46,762,641

San Rafael City CouncilMay 19, 2025

San Rafael City Council
May 19, 2025