San Rafael City Council
June 15, 2026

____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 2.b
Meeting Date: June 15, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio,
Interim City Manager
Shawn Plate, Finance Manager
Van Bach, Accounting Manager
City Manager Approval: ___________
TOPIC: FINAL CITYWIDE BUDGET FOR FISCAL YEAR 2026-27, GANN LEGAL

SPENDING LIMIT, MEASURE A WORKPLAN, AND CAPITAL IMPROVEMENT

PROGRAM
SUBJECT:

1. APPROVAL OF THE CAPITAL IMPROVEMENT PROGRAM – FY 2026-27 THROUGH FY 2028-29

2. RESOLUTION APPROVING THE CITYWIDE BUDGET AND CAPITAL IMPROVEMENT PROGRAM BUDGET FOR THE FISCAL YEAR 2026-27; PROVIDING

FOR THE APPROPRIATIONS AND EXPENDITURE OF ALL SUMS SET FORTH IN THE BUDGET IN THE AMOUNT OF $208,222,108, WITH NET APPROPRIATIONS OF $177,550,935

3. RESOLUTION APPROVING FISCAL YEAR 2026-27 GANN APPROPRIATIONS LIMIT AT $206,894,864

4. RESOLUTION APPROVING THE MEASURE A WORK PLAN FOR PROPOSED EXPENDITURE OF MEASURE A FUNDS FOR FY 2026-27
RECOMMENDATION:

1. Approval of the Capital Improvement Program – FY 2026-27 through FY 2028-29 (Attachment 4).

2. Adopt a resolution approving the Citywide Budget and Capital Improvement Program for the Fiscal Year 2026-27, providing for the appropriations and expenditure of all sums set forth in the budget in the amount of $208,222,108 with net appropriations of $177,550,935. (Attachment 1).

PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 2

3. Adopt a resolution approving the Fiscal Year 2026-27 Gann Appropriations Limit. (Attachment 2).

4. Adopt a resolution approving the Measure A Work Plan for Fiscal Year 2026-27 (Attachment 3).

SUMMARY:

This item represents the culmination of the budget development process that has included considerable cross-departmental collaboration and City Council input. The budget presented herein has been informed by year-two of the workplan supporting the updated City Council ThreeYear Strategic Plan. The Preliminary Proposed FY 2026-27 Budget was presented and discussed at the City Council meeting on May 18th and the Year-Two workplan was presented and discussed at the City Council meeting on June 1st. This agenda item incorporates feedback received from the City Council as well as minor revisions to the FY 2026-27 budget and is presented herein for City Council consideration and adoption.

BACKGROUND:

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 updated City Council Goals and Objectives as well as existing fiscal policies approved by the City Council.

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 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 2026-27 budget does not compromise the City’s long-term fiscal condition.

The Final Proposed FY 2026-27 All Funds budget reflects expenditure appropriations of $208,222,108, including operations ($180,916,559), capital ($20,921,000) and transfers ($6,384,549). This level of expenditure appropriations, representing an increase of 8.3% over the original FY 2025-26 adopted budget, is supported through a combination of FY 2026-27 revenues ($200,499,776), transfers ($6,384,549) and available fund balances.

The Final Proposed FY 2026-27 budget supports an authorized staffing level of 418.08 full-time equivalent (FTE) positions, representing an increase of 4.40 FTE from the level authorized FY 2025-26 Final Budget.

The Final Proposed FY 2026-27 General Fund budget reflects recommended appropriations of $115,761,674, 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 2026-27 revenues and transfers of $111,770,669 as well as use of available one-time assigned fund balance of $4,100,000. Expenditures for City programs and services supported by PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 3 the General Fund are proposed to increase by 2.2% (including transfers) over the levels provided for in the FY 2025-26 Adopted Budget.

Overall, the appropriations included in the Proposed FY 2026-27 budget, as presented herein, are within the City’s constitutional GANN spending limit.

City Council Goals and Objectives
City Council Goals and Objectives – In conjunction with the adoption of the FY 2025/26 adopted City Council adopted its Three-year (FY 2025/26 – FY 2027/28) Goals and Objectives organized around strategic policy areas. This strategic policy document serves to guide development of the annual operating and capital budget.

Concurrent with the development of this budget, staff has been developing complimentary FY 2026-27 departmental workplans supporting the Goals and Objectives established through the City Council’ strategic plan. The funding recommendations included in the FY 2026-27 Budget are intended to ensure that available resources are allocated in support of key initiatives projects aligned with the City Council 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 2025-26 revenues and expenditures through Q3 (March 31, 2026) 2) Final Proposed Budget for FY 2026-27
a. All Funds Citywide Budget Summary
b. General Fund Budget Summary
c. Summary of Funding Recommendations
3) Final Proposed FY2026-27 Capital Improvement Program (CIP) Budget 4) Funding Status of Pension Obligations
5) General Fund Reserves and Fund Balance
6) GANN Appropriations Limit
7) Staffing Level / Job Classification Changes
8) FY 2026-27 Workplan Supporting City Council Strategic Plan Goals and Objectives 9) Unfunded Needs
ANALYSIS:

CURRENT BUDGET - FISCAL YEAR 2025-26 THIRD QUARTER UPDATE All Funds
Table 1 provides current year (FY 2025-26) revenue and expenditure results through the third quarter of the fiscal year, ending March 31, 2026.
• All Funds revenues through the third quarter were recorded at $132.82 million, which represented 66.9% of the amended budget of $198.44 million. • All Funds expenditures and encumbrances for the same period were recorded at $146.52 million, or 71% of the amended FY 2024-25 budget of $232.79 million.

PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 4 Table 1:

All Funds Revenue and Expenditure Results (through 3/31/26) General Fund
Revenues: The original FY 2025-26 budget, adopted on June 2, 2025, projected $106.39 million in revenues. The Mid-Year Budget Update presented on March 2, 2026, projected year-end General Fund revenues of $107.3 million.
• Revenue results through the third quarter of the fiscal year were recorded at $63.85 million, or 59.7% of the amended budget.
• Based on results through the third quarter, year-end General Fund revenue projections have been updated to $109.39 million, or $2.5 million (1.91%) above the FY 2025-26 amended budget figure. This reflects continued strength in sales tax receipts through the 3rd quarter, exceeding the levels projected following the mid-year update. • Current year revenues continued to show favorable variances in sales tax (including Measure E and Measure R), property transfer tax, and transient occupancy tax.

Expenditures: The FY 2025-26 adopted budget provided expenditure appropriations of $114.03 million. The current amended FY 2025-26 General Fund budget stands at $116.15 million, reflecting encumbered carryforwards and budget amendments approved since July 1, 2025. • Expenditures and encumbrances through the third quarter of the fiscal year were recorded at $88.73 million, or 76.4% of the amended budget.
• Based on these results, General Fund expenditures are projected to end the fiscal year at $117.85 million, or $1.70 million (1.5%) above the amended budget. • Consistent with the results presented in the Mid-Year Budget Update the City is facing a budget deficit of $1.70 million due to the personnel costs trending roughly $2.7 million over budget; non-personnel expenditures continue to trend $1.7 million under budget.

PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 5 Operating results: Due to better than expected revenue results through the 3rd quarter – buoyed by sales tax receipts – the General fund is expected to end the year with a favorable ($0.80 million variance relative to the amended budget.

Table 2:

FY 2025-26 General Fund Results (through 3/31/26) and Year-End Projections While this forecast suggests a modest level of additional one-time budget capacity, the FY 2026/27 Proposed Budget reflected in this report does not rely on this result, Consideration of allocating any available year-end surplus should be deferred until fiscal year-end when final actual revenue and expenditure results are reported.

Specific funding recommendations related to use of available fund balances are contained in the discussion of the Preliminary Proposed FY 2026-27 Budget.

FINAL FISCAL YEAR 2026-27 CITYWIDE BUDGET
FY 2026-27 BUDGET HIGHLIGHTS
 Citywide Budget: The total proposed FY 2026-27 expenditure budget for the City is $208,222,108. These appropriations are supported by FY 2026-27 revenue and other sources projected at $206,884,325, as well as by fund balances retained from previous periods for capital projects and priority initiatives (Attachment 1, Exhibit I). The proposed FY 2026-27 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 from 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 FY2026-27 General Fund budget includes recommended appropriations of $115,761,674 representing an increase of $2,512,823 (2.2%) over the prior year’s adopted budget. The proposed General Fund budget is supported by estimated General Fund revenues ($110,453,846), transfers-in ($1,313,826), and available fund balance ($4,100,000).

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 Adopted Amended Year-To-Date % of Amended
FY 2025-26 FY2025-26 Actuals FY 2025-26 Year-End
Budget Budget (Mar) Encumb. Budget Projection $ %
Revenues $ 106.39 $ 106.89 $ 63.85 59.7% $ 109.39 $ 2.50 2.3% Expenditures $ 114.03 $ 116.15 $ 86.64 $ 2.09 76.4% $ 117.85 $ 1.70 1.5% Net $ (7.64) $ (9.26) $ (22.79) $ (8.46) $ 0.80
FY 2025-26 General Fund Budget Projections
as of 3/31/26
(Dollars in $M)
Year-End
Variance
PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 6 FY 2026-27 total approximately $115.76 million. These appropriations comprise $111.12 million in operating expenditures and $4.65 million in transfers to other funds.

Table 3 summarizes the information provided in Exhibit II and presents the proposed FY 2026-27 budget with a comparison to the projected FY 2025-26 budget. The table presents the year-overyear change in revenues and expenses, as these are key metrics.

Table 3:

Comparison of FY 2025-26 Adopted and FY 2026-27 Proposed General Fund Budget *Note: This General Fund summary table has been updated to reflect the conversion of revenues and expenditures within the Recreation Revolving (Special Revenue) Fund (222) to the General Fund, starting with FY2026-27, consistent with application of GAAP/GASB guidance related to accounting for Special Revenue Funds.

Revenues and transfers available to support the FY 2026-27 General Fund budget are projected to be $5.38 million (5.1%) higher than the FY 2025-26 adopted budget. Of this amount, approximately $3.31 million is primarily due to conservative projected growth in major revenue items such as property tax and transient occupancy tax, revenue growth within sales and transient occupancy taxes. The additional $2.09 million is related to revenues previously reported within the Recreation Revolving (Special Revenue) Fund being reflected in the General Fund for FY2026-27.

The Proposed FY 2026-27 Budget operating expenditures within the General Fund represent an increase of $6.58 million (6.3%) over the prior year’s adopted budget. Of this amount, $4.7 million reflects operating expenditures previously recorded in the Recreation Revolving (Special Revenue) Fund. The balance represents increases is due to personnel costs consistent with terms of collective bargaining agreements with all of the City’s represented and unrepresented bargaining groups. General Fund personnel costs are anticipated to increase by approximately $1.0 million, while non-personnel costs are increasing by $0.6 million, as compared to the FY2025-26 Adopted Budget (i.e. exclusive of the impacts of reflecting Recreation Revolving Fund General Fund
Adopted FY
2025-26
$ Change from
previous year
% Change from
previous year
Baseline*
Balancing
Measures
Funding
Augmentations
Proposed
FY2026-27 Budget
Revenues $ 104,030,362 $ 110,041,843 527,000 $ (110,000) $ 110,458,843 Transfers-In $ 2,360,493 $ 1,113,826 200,000 $ 1,313,826 Total Resources $ 106,390,855 $ 111,155,669 727,000 $ (110,000) 111,772,669 $ 5,381,814 5.1% Expenditures $ 104,538,430 $ 111,602,597 (1,023,000) 535,550 111,115,147 $ 6,576,717 6.3% Transfers-Out $ 8,710,417 546,527 4,100,000 4,646,527 $ (4,063,890) -46.7% Total Uses $ 113,248,847 $ 112,149,124 (1,023,000) 4,635,550 115,761,674 $ 2,512,827 2.2% Net Results $ (6,857,992) $ (993,455) 1,750,000 $ 4,745,550 (3,989,005) Use of Prior Period Funds
Liability Fund - Premiums/Claims 2,500,000 1,600,000 1,600,000 Capital Fund - Future CIP Projects 1,500,000 2,000,000 2,000,000 Operating Support (Merrydale 50% match) 500,000 500,000 Capital Fund - Paving Streets/Roads 1,000,000
Vehicle Replacement - Replenish Fund 1,000,000
6,000,000 4,100,000 4,100,000 (1,900,000) -31.7%
Net of Use of Prior Period Funds $ (857,992) $ (993,455) $ 110,995 Proposed FY2026-27
PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 7 personnel costs within the General Fund for FY2026-27). The FY2026-27 Proposed Budget also includes an estimated $2.77 million in salary savings, based on a 3.5% vacancy factor built into the FY 2026-27 General Fund operating budget.

The FY 2026-27 Proposed budget includes a limited amount of funding augmentations, summarized below. These include funding proposals related to the pending amended Services Agreement with Marinwood Community Services District related to provision of Fire/EMS services, establishing relief staffing within the San Rafael Fire Department to reduce overtime utilization and modest recurring funding allocations to address organizational initiatives and support special events (previously supported via one-time funding allocations). Also included in the budget proposal is a reallocation of contract services funding (formerly supporting the Downtown Streets Team) to hire two Parks Maintenance positions and transition Downtown cleaning and maintenance to services provided in-house.

PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 8 General Fund FY 26-27 New Expenditure Recommendations
In addition, the FY 2026-27 Proposed Budget includes recommended transfers-out from the General Fund to support other funds that have been historically underfunded, support programs and services funded through various special revenue, capital and internal service funds as well as allocation of available General Fund excess fund balance previously assigned for specific purposes, as follows:

Use of Prior Period Funds (Fund Balance):
• Merrydale Interim Shelter Operations $ 500,000
• Liability / Self-Insurance Fund 1,600,000
• Capital Projects Fund 2,000,000
$4,100,000
The appropriations are supported by $110.16 million in projected revenues and transfers from other funds. The $1.31 million of transfers, including:
• $650,000 from Gas Tax Fund to reimburse street maintenance personnel costs • $463,826 from Parking Services Fund to cover administrative support costs • $200,000 from the Measure C (Wildfire Prevention) Fund to cover allowable administrative support costs
FY2026-27 General Fund Balancing Measures
In order to address the FY2026/27 baseline General Fund deficit of $1.0 million, as well as support the funding recommendations summarized above, a total of $1.75 million in General Fund balancing measures as include in the Proposed Budget, to include selected citywide proposals ($927,000) as well as departmental expenditure reductions, as follows:

General Fund Revenue Expense Total (Net)
Recurring
Marinwood - Contribution $ 350,000
Marinwood - Chief Officer $ (110,000)
$ 460,000
SRFD Relief Positions 661,380
(562,830)
98,550
Together San Rafael Initiative(s) 12,000
Employee Recognition (event) 25,000
37,000
Special Events - Sponsorships 50,000
50,000
Downtown - Clean-up/Maint 200,000
Reallocation of Contract Services (200,000)
$ -
$ (110,000) $ 535,550 $ 645,550
One-Time
Merrydale Operating Contrib. $ 500,000
Transfer to Capital Fund (401) 2,000,000
Transfer to Liability Fund 1,600,000
$ 4,100,000
PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 9 OPEB Pre-funding – a savings of $477,000 is realized through transitioning citywide funding related to Other Post-Employment Benefits (OPEB) from the historical “pay-go” approach to prefunding based on actuarial determined contribution levels which take advantage of funding setaside by the City in the Section 115 Trust Fund established years ago through the CalPERS Employee Retirement Benefit Trust (CERBT) fund.

Reduction in Citywide Contingency Funds – The FY2026/27 budget proposes a 25% reduction in the unappropriated contingency historically included in past budgets, resulting in a savings of $250,000. This reduction is being proposed in light of efforts made as part of this year’s budget process to address several areas of historical under-funding of baseline operating costs. With funding increased within departmental baseline operating budgets for utilities and internal services charges, this warrants an off-setting reduction in unallocated contingency funding.

MWPA (Measure C) Administrative Costs – The Proposed Budget includes a recommendation to recover allowable administrative overhead costs associated with the City’s implementation of programs funded through Measure C. This recovery is estimated at $200,000, and offsets General Fund support for programmed activities and projects.

Departmental Expenditure Reductions – A total of $823,000 in departmental expenditure reductions are proposed as part of the FY2026-27 budget. These include reductions in contract services totaling $340,000, personnel reductions (including elimination of 2.0 positions) totaling $393,000 and funding re-allocations (to other funds) of $90,000.

Revenue Trends and Assumptions:

Property Tax:

Property-related taxes are currently projected to increase by 4.1 percent over the original FY 2025-26 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.

PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 10 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 FY2025-26 budget. Staff are projecting recurring sales tax revenues (Bradley-Burns) to remain relatively flat $26.86 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 public safety 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 42 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 license 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, and other development support services.

Expenditure Trends and Assumptions:

The All Funds expenditure growth reflected in the FY 2026-27 Proposed budget stems primarily from increased personnel costs of $5.2 million (4.9%) consistent with the terms of the three-year collective bargaining agreements entered into at the start of FY2024-25. 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. This increase, while out-pacing revenue growth is accommodated by the favorable impact of the lower MCERA contribution rates for FY2026-27 as well as the budget-balancing measures included in the Proposed Budget.

Contributions to the Marin County Employees Retirement Association (MCERA) are projected to remain relatively flat compared to the previous year as a result of a contribution rate reduction of 5%-7% for FY 2026/27. This contribution rate reduction is due to a combination of factors, including growth in payroll base (impacting contribution rate required to amortized the plan’s fixed unfunded actuarial liability), and favorable investment returns. This decrease in employer contribution rates for FY 2026-27 is offset by increases in pensionable compensation resulting from collective bargaining agreements. Pension expenses across all funds are budgeted at $25.4 million representing approximately 23 percent of total citywide personnel budget.

Other Funds Highlights
PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 11 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 in order to support programs, services and projects.

The following section presents FY2026-27 Proposed Budget highlights:

EMS/Paramedic Fund
The Emergency Medical Services/Paramedic Fund has planned expenditures of $11.1 million for the upcoming fiscal year, supported by $10.4 million in revenues of which $5.6 million, or 55 percent, comes from the Paramedic Parcel 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 2026-27 Proposed Budget reflects the incremental cost of year-two costs of the new consolidated Marin County Fire Dispatch model. In addition, the Final FY2026-27 Budget also reflects the costs (with off-setting revenues) of implementing a Basic Life Support (BLS) Unit, staffed by temporary Emergency Medical Technicians (EMT’s) responding to low-level emergency medical calls, including transports.

The EMS/Paramedic Fund is projected to retain $2.3 million in unallocated fund balance as of June 30, 2027. 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.

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 $610,000 is being proposed to be expended during the year to fund project initiatives.

Measure K (D) – Library Parcel Tax
Measure D, the successor library parcel tax to Measure C, is scheduled to sunset at the end of the current fiscal year. The FY2026/27 Proposed Budget has been developed assuming passage of Measure K, subject to voter-approval on the June 2, 2026 ballot. Measure K would extend the existing Library Special tax at the current rate, generating $1.2 million in annual revenues supporting Library operations.

While certification of final election results from the June 2nd election are still pending, it appears as though Measure K will be approved, negating the need to implement the budget contingency plan presented to the City Council with the Preliminary FY2026-27 Budget.

Recreation Revolving Fund
Concurrent with the adoption of the FY2026-27 Budget, staff is proposing to transfer majority of the Recreation Revolving fund revenues and program expenditures into the General Fund, as this fund does not meet the accounting standards required to be treated as a Special Revenue Fund.

PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 12 For transparency, the following narrative was included in the staff report presenting the FY2026- 27 Preliminary Budget:

The FY 2026-27 Proposed Budget includes appropriations totaling $5.78 million which is supported through recreation program revenues of $2.85 million and an operating transfer from the General Fund of $2.9 million. General Fund support to the Recreation Revolving Fund is increased as a result of Building and Fleet maintenance costs being converted to an internal service fund, with additional costs (previously incurred in the General Fund) now being allocated to all funds, including the Recreation Revolving Fund.

The FY2026-27 Final Budget still reflects appropriations totaling $1.04 million covering costs related to contract recreation program instructors with corresponding program revenues supporting program activities. These revenues, restricted for the purpose of covering third-party instructor costs, will continue to be tracked and reported within the Recreation Revolving (Special Revenue) Fund.

Childcare Fund
The Childcare Fund is proposed to include expenditure appropriations of $4.0 million for FY 2026- 27 supported by program revenues of $4.51 million. The Childcare Fund generally operates under full-cost recovery. A modest fee increases is again required to maintain full cost-recovery for the fee-supported Childcare program. The proposed budget also includes the addition of 3.4 Childcare positions to support increased enrollment (and funding) at the Glenwood Pre-school site, the request of the San Rafael City Schools district.

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 $4.15 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 $1.9 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. Appropriations for new CIP projects are included in the Proposed Budget and discussed in the Capital Improvement Plan 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 2026-27 Proposed budget for this fund is $4.70 million, inclusive of operating transfers, supported by $5.28 million in revenues. The Parking Fund has generally rebounded from the negative effects of the pandemic and reflects a slight positive fund balance for the new fiscal year.

PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 13 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.

In conjunction with the development of the FY 2026/27 budget the City’s Building Maintenance and Fleet Maintenance operations have been transitioned from General Fund programs to new Internal Service Fund activities, with costs now being charged to operating programs, including non-General Fund supported activities receiving services.

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 2026-27 through FY 2028-29 (Attachment 5).

The first year, FY 2026-27, of the updated plan informs the new capital budget appropriations to be included as part of the FY 2026-27 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 2025-26, 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 2026-27 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 City Council priorities and existing planning documents to accommodate high priority needs, which focused on life/safety, maintenance PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 14 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 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).

Final FY 2026-27 Capital Improvement Project Highlights The Final Capital Improvement projects is listed below:

1. ADA Transition Plan

2. Terra Linda pool house study

3. Falkirk Community Center Window Replacement Phase 1

4. Carnegie Reuse Study

5. Public Works HVAC Repair

6. Beach Park Seawall Assessment

7. Montecito Neighborhood Park Feasibility Study

8. Mahon Creek Enhancement

9. North- South Greenway Gap Closure & Multi-modal Improvements (Mission to Tamalpais/ Fourth Street to Grand Ave)
The following table summarizes the funds that provide the majority of resources available to support the City’s Capital Improvement Program (CIP):

Table 3: CIP Funding Sources
Fund # Fund Name Description
PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 15 205 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 Fund 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)] • Transportation Authority of Marin (TAM) Measure AA and B
SB 1 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.
208 Childcare Fund Projects identified in the CIP as utilizing Fund 208 are restricted to facility improvements at the City’s childcare centers.
214 Library Revolving
Fund
The Library Revolving Fund consists of donations and grants received to support Library operations, programs, services, and infrastructure. 235 Baypoint Lagoon
Assessment District
The Baypoint Lagoons Lighting and Landscape District fund was formed to protect and enhance wildlife habitat and water quality in Baypoint (Spinnaker) Lagoon and the adjacent diked salt marsh. 236 Loch Lomond
Assessment District
The Loch Lomond (Melo-Roos) Assessment District fund
was established in 1992 to pay for the repair and maintenance of the stormwater system infrastructure within the area.
240 Parkland Dedication This fund was established to account for long-term developer deposits used to acquire and increase capacity of the City’s park infrastructure. 241 Park 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 care for existing parks and open spaces, support regional community parks, projects, and programs and to further farmland restoration. The Department of Library and Recreation prepare a Measure A work plan each fiscal year 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 (Measure E)
The Essential Facilities Fund was established by the City Council in order to allocate one-third ($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 Fund 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.

PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 16 501 Parking Services Projects identified in the CIP as utilizing Parking Services Funds are restricted to parking-related projects, including maintenance and upgrades at City parking garages and parking lots.
611 Building Maintenance
Fund
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 2026-27 CIP budget is grant-funded (approximately $6.5 million), the respective grant match and non-grant funded projects are paid for through Funds 205 (Stormwater), 206 (Gas Tax), 236 (Loch Lomond CDF #10), 241 (Parks Measure A), 246 (Traffic Mitigation Fee), 401(Capital Improvement), 420 (Essential Facilities), 430 (Measure P) and 611 (Building Maintenance). Funds 205, 206, and 611 also have their respective operating budget, which consists of expenses related to maintenance of 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:
• Downtown Library Modernization
• Peacock Gap Park Playground Improvements
• Pickleweed Park Enhancement & Field Renovation
• Public Safety Center Electronic Sign Replacement
• Electric Vehicle Charging Installation at Public Works Corp Yard • FY 2025-26 Traffic Signal System Backup Battery Installations and Replacements
• FY 2025-26 Corrugated Metal Pipe Replacement
Projects pending completion include:

1. Citywide Storm Drain Plan

2. Citywide Bicycle and Pedestrian Plan

3. Welcome Gateways

4. Pickleweed Park Restroom

5. Canal Active Transportation Experience Improvements

6. San Rafael Canal Crossing and Boatyard Park

7. Second Street and Fourth Street Intersection Improvements

8. South Merrydale Road- Civic Center Connector Pathway

Summary of FY 2026/27 Proposed Capital Improvement Program Budget Category FY 2026-27
Annual Programs – Capital
Stormwater $600,000
PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 17 Transportation $4,475,000
Sub-Total Annual Programs $5,075,000
Buildings / Facilities
Buildings $2,480,000
Essential Facilities $150,000
Recreation $3,700,000
Building Capital Contingency $1,000,000
Sub-Total Buildings / Facilities $7,330,000
Parks  $1,130,000
Stormwater  $3,666,000
Transportation  $2,225,000
Sub-Total Projects $14,351,000
*TOTAL $19,426,000

Funding Sources
General Fund $1,000,000
Stormwater Fund (205)  $ --
Grant Funds $3,596,000
Sub-Total Stormwater Fund (205) $3,596,000
Gas Tax Fund (206)  $5,691,400
Grant Funds $1,228,600
Sub-Total Gas Tax Fund (206) $6,920,000
Loch Lomond CDF #10 (236)  $50,000
Measure A (241)  $160,000
Capital Improvement Fund (401)  $1,970,000
Project Transfer $325,000
Grant Funds $325,000
Sub-Total CIF Fund (401) $2,620,000
Essential Facilities Fund (420)  $150,000
Measure P (430)  $1,800,000
Building Maintenance Fund (611)  $3,130,000
TOTAL  $19,426,000
*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, 2025, and approved by the Marin County Employee’s Retirement Association (MCERA) Board in February 2026. This valuation was used to determine the contribution rates for FY 2026-27. The composite rate for the City will be 48.93 percent, a 6.89 percentage point decrease from the current rate of 55.83 percent. The budgeted pension contribution for FY 2026-27 provides full funding for the required contribution. The rate for public safety employees decreased from 68.90 percent to 62.60 percent, PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 18 a decrease of 6.38 percentage points. The rate for miscellaneous employees decreased from

43.08 percent to 36.31 percent, a decrease of 6.77 percentage points. The valuation also reported an unfunded actuarial liability of $84.7 million for the City, representing a funded ratio of 88.6 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 2026-27, 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 2026-27 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, 2025, reports $33.6 million in plan assets offset by $47.7 million in actuarially accrued liabilities, leaving an unfunded actuarial liability of $14.1 million. The City’s ADC for FY 2026-27 is $2.4 million.

General Fund Balance and Reserves
The FY 2026-27 proposed budget would maintain General Fund reserve levels consistent with the update Reserve Policy approved by the City Council concurrent with adoption of the FY2025- 26 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, 2027.

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 needed that may require supplemental support from the General Fund.

The FY2026-27 Proposed Budget includes recommendations for allocations of projected excess fund balance expected to be available as of June 30, 2026 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 off-set 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 2026-27 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 ($4.1 million) is proposed to be either transferred to various special revenue and capital project funds and or appropriated in the budget year for priority one-time projects and expenses.

GANN APPOPRIATIONS LIMIT
The Appropriations Limit for each year is based on the prior years Appropriations Limit, adjusted by factors that incorporate changes in the cost of living and population. For FY 2026-27, the City uses a 4.95 percent increase in California per capita personal income. For the population change, PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 19 the City uses a negative 0.05 percent – representing the change in population for San Rafael, which is higher than Marin County’s figure of a negative 0.74 percent for the period of January 1, 2025 to January 1, 2026 (provided by the State of California Department of Finance).

Attachment 2, Exhibit A establishes the new Appropriations Limit for FY 2026-27; which has been calculated to be $206,894,864. The actual budget subject to the limitation excludes selfsupporting funds, capital improvement funds, capital outlay grant funds, and specific exclusions such as the Gas Tax Fund. The FY 2026-27 appropriations subject to the Gann Limit are $102,854,268 (Attachment 2, Exhibit B). Therefore, the portion of the City’s budget appropriation that is restricted by the Gann Limit is $104,040,596 under the legal limit.

STAFFING
Proposed Personnel Changes:

This section of the report seeks Council consideration of recommended personnel actions.

Periodically, the Human Resources Department seeks to establish, reallocate, or delete positions to reorganize or restructure staffing to most effectively and efficiently serve the community and city goals.

During this budget review, Staff is recommending the following:

Fire
• Add one (1) fixed-term Advanced Professional Temp (Wildfire Program Support Specialist) position for a one-year temporary assignment during Fiscal Year 2026/27 to support Wildfire Prevention Program operations.
o This fixed-term position is temporary in nature, funded through Measure C (Fund 242), and is scheduled to sunset at the conclusion of FY 2026/27.
o The position will support wildfire inspection coordination, assist with administration of the wildfire prevention hotline and mitigation grant program, track Measure C program documentation, and provide public outreach support related to defensible space compliance in order to maintain current service levels.
• Add three (3) full-time regular Firefighter Paramedic positions to establish a dedicated relief pool within the Fire Department, with one position assigned to each shift.
o The addition of these positions is intended to reduce overtime costs associated with minimum staffing requirements, planned leave coverage, training absences, and backfill needs.
o The relief pool will improve staffing stability and operational flexibility by providing dedicated personnel available to fill vacancies across shifts, reducing reliance on mandatory overtime while maintaining emergency response service levels.
o These positions will also support employee wellness and fatigue management by decreasing excessive overtime usage and improving schedule predictability for suppression staff.

Department of Public Works
• Convert one (1) fixed-term Junior Engineer position to a full-time regular Junior Engineer position.

PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 20 o The fixed-term position was originally approved to support increased engineering workload associated with grant-funded and ARPA-funded capital projects.
o Public Works has identified an ongoing operational need for continued engineering support within the Capital Improvement Program and Land Development Division.
o Converting the position to a regular full-time role will provide continuity in project delivery, support long-term workload demands,
and maintain staffing capacity within the Department.
• Convert three (3) Junior Engineer positions to Assistant Engineer positions. o Public Works has experienced ongoing recruitment challenges for midlevel engineering positions and has historically underfilled vacancies at the Junior Engineer level to support workforce development and succession planning.
o Three Junior Engineers are expected to meet the qualifications for Assistant Engineer by FY 2026/27, including the required experience and Engineer-in-Training certification.
o These employees currently serve as lead engineers on projects, oversee consultant and contractor work, and have demonstrated strong performance and readiness for advancement.
o The proposed reclassifications support employee development, retention, and continued operational capacity within the engineering division.
• Convert one (1) regular Associate Engineer position to a Senior Civil Engineer position
o This reclassification will provide front-line supervisory support for the Land Development Division within Public Works and
help maintain leadership capacity across the Department’s Capital Improvement, Land Development, and Traffic Engineering divisions. o The conversion also supports succession planning, project oversight, staff training, and retention in a highly competitive public works engineering market.
• Add two (2) regular Parks Maintenance Workers positions for Downtown Maintenance
o The addition of these positions will enhance downtown maintenance and beautification efforts following the dissolution of the Downtown Streets Team, which previously provided daily litter and cleanup services.
o The positions will support expanded cleaning, pressure washing, graffiti abatement, illegal dumping response, parking garage maintenance, encampment cleanup support, and other high-visibility maintenance needs throughout the downtown corridor.
o Adding dedicated in-house staff will improve service responsiveness, coordination, and operational efficiency while providing a more consistent level of service to residents, businesses, and visitors. o The proposed staffing model is expected to be more cost-effective than relying solely on contracted services and will support broader citywide maintenance and beautification priorities.

PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 21 Recreation and Childcare
• Convert vacant Administrative Assistant II position to Administrative Analyst position
o The proposed reclassification reflects the evolving operational and administrative needs of the Recreation & Childcare Division and aligns the position with a higher level of analytical, compliance, and program coordination responsibilities.
o The position will support functions including program and policy administration, grant support and reporting, budget and contract coordination, records management, onboarding and recruitment support, and development of operational procedures and program materials.
o The reclassification will enhance administrative capacity, improve operational efficiency and regulatory compliance, and provide greater support for division-wide initiatives and cross-departmental coordination. o The additional cost associated with the reclassification is anticipated to be fully absorbed by Childcare Fund 208 with no General Fund impact. • Convert one (1) vacant 0.6 FTE Childcare Supervisor position to one (1) full-time

1.0 FTE Childcare Instructor II position within the Pickleweed Preschool Program (Fund 260).
o The proposed conversion will support operational and staffing needs within the preschool program by increasing classroom staffing levels and improving coverage during employee absences.
o The additional staffing capacity will help address increased program demands associated with younger participants, including supervision requirements, diapering support, and staff-to-student ratio needs. o The revised staffing model is intended to improve workload distribution, operational consistency, and overall workplace support across classrooms.
o The position is anticipated to be fully funded through existing and projected Fund 260 revenues, including ongoing state childcare program funding, with no General Fund impact.
• Add three (3) FTE positions for the Glenwood Afterschool Program, including two (2) Childcare Instructor II positions and one (1) Childcare Instructor I position. o The additional staffing is needed to support anticipated enrollment growth at the Glenwood Campus Afterschool Program associated with increased Transitional Kindergarten enrollment for the 2026/27 school year.
o The proposed positions will support expanded program
capacity, maintain required staff-to-student ratios, and ensure adequate supervision and program support across multiple age groups and classrooms.
o The staffing expansion will allow the City to continue partnering with San Rafael City Schools to meet growing community demand for afterschool childcare services.
o The additional personnel costs are anticipated to be offset by increased program revenue generated through higher enrollment levels within Fund 208, with no General Fund impact.

City Manager’s Office
PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 22 • Eliminate one (1) vacant regular Senior Management Analyst assigned to Community Services Division
o This position is being eliminated as part of an organizational restructuring associated with the City Manager’s Office realignment. o The Community Services Division will now be supported by other positions within both the City Manager’s Office and Community and Economic Development Department, which currently have capacity to absorb and provide ongoing analytical and administrative support. o This change streamlines administrative support functions across departments, reduces duplication, and aligns staffing resources with current organizational structure and service delivery needs.

Finance Department
• Eliminate one (1) vacant fixed-term Advanced Professional Temp position o This fixed-term position has remained vacant for
approximately three years following the incumbent’s promotion to a regular Finance Manager role.
o The position is no longer anticipated to be needed and is recommended for elimination as part of ongoing efforts to align staffing with current organizational structure and workload demands.

FY2026-27 Workplan
In June 2025, the City Council adopted a Three-Year Strategic Plan (FY 2025–2028) to advance seven priority areas through specific, measurable goals and objectives, as follows:

A – Economic Development and Neighborhood Vitality
B – Mobility and Infrastructure
C – Sustainability and Resilience
D - Housing and Homelessness
E – Quality of Life: Safety and Well-being
F – High-Performing Government – Innovative, Inclusive, Efficient and Accessible G – Equity, Access, Belonging and Opportunity for All
Under the City’s strategic planning framework, each year Staff develop individual work plans for each of the priority areas, which detail the specific activities and initiatives staff are targeting to complete by the end of that given fiscal year. This approach provides the organization with a foundation for prioritization of goals and objectives, alignment with resource allocation as provided for in the annual budget and a reporting mechanism to support accountability and transparency on progress made in implementing the Three-Year Strategic Plan.

A report covering FY2025-26 accomplishments as well as the proposed FY 2026-27 workplan was presented to the City Council at their meeting of June 1, 2026. Attachment 4 of this staff report includes the summary listing of a) new workplan items commencing in FY 2026-27, and b) FY 2025-26 workplan items that will continue into the new fiscal year.

PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 23 The alignment with the annual budget process is a critical step in ensuring that the workplan is supported by available resources and that City staff have the capacity, to the extent possible, to prioritize workplan deliverables. As progress is made on the FY 2026-27 workplan, refinements and updates are to be expected during the fiscal year. These may include the identification of additional resources required as the scope and complexity of certain initiatives come into sharper focus.

Unfunded Needs – Challenges
While the FY2026-27 budget provides for a balanced, prudent spending plan in support of baseline programs and services, priority projects and initiatives as well as investments in capital infrastructure, it is important to also highlight those areas where the City lacks sufficient funding to meet community demands as well as long-term infrastructure needs.

Unfunded needs were highlighted in a presentation to the City Council in February 2026, related to development of a long-term Fisal Sustainability Framework.

The most significant funding deficiencies remain in the area of deferred maintenance and capital replacement of city assets, including streets and roads, sidewalks, storm drain infrastructure, parks and city facilities. In short, the City lacks sufficient and reliable funding to support investments in maintenance and replacement of capital infrastructure and thus relies largely on one-time, outside funding sources (i.e. grants), where available.

In addition, increased demands for services, particularly in the area of public safety, continue to place additional pressures on existing resources resulting in a gradual deterioration of service levels and response times.

The following table summarizes some of the areas of structural funding deficiencies:

As discussed in the February presentation related to long-term fiscal sustainability, staff presented several potential new revenue measures for future City Council consideration. These include exploring options for placing either a general purpose or, alternatively, a special tax measure on the November 2026 ballot. Staff is continuing to explore these options and presented an update to the Finance Subcommittee at their meeting of June 9, 2026.

PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 24 As part of staff’s ongoing analysis of potential revenue measure options, additional polling is being planned to gauge voter sentiment for either an increase in the City’s existing property transfer tax (general purpose) and/or a new public safety parcel tax (special tax). In order for any measure to appear on the November 2026 ballot, City Council action would be required at the meeting of July 20, 2026 (as the deadline for providing ballot information to the County elections office is August 6, 2026).

FISCAL IMPACT: The Final Fiscal Year 2026-27 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 acceptance of this report.

RECOMMENDATION:

1. Approval of the Capital Improvement Program – FY 2023-27 through FY 2028-29 (Attachment 4).

2. Adopt a resolution approving the Citywide Budget and Capital Improvement Program for the Fiscal Year 2026-27, providing for the appropriations and expenditure of all sums set forth in the budget in the amount of $208,222,108 with net appropriations of $177,550,935. (Attachment 1).

3. Adopt a resolution approving the Fiscal Year 2026-27 Gann Appropriations Limit. (Attachment 2).

4. Adopt a resolution approving the Measure A Work Plan for Fiscal Year 2026-27 (Attachment 3).

ATTACHMENTS:

1. Resolution Approving the Citywide Budget and Capital Improvement Program Budget for FY 2026-27
a. Exhibit I – FY 2026-27 Proposed Budget (Revenues and Expenditures by Fund) b. Exhibit II –FY 2026-27 All Funds Proposed Budget (Revenues, and Expenditures) with comparison to FY2025-26 Adopted Budget c. Exhibit III – FY 2026-27 General Fund Proposed Budget (Revenues, and Expenditures) with comparison to FY2025-26 Adopted Budget d. Exhibit IV – Summary of FY 2026-27 Authorized Staffing (Full-Time Equivalents) e. Exhibit V – Summary of FY 2026-27 Authorized Positions by Classification (FullTime Equivalents) f. Exhibit VI –Historical Trend of Authorized Staffing (Full-Time Equivalents)

2. Resolution Approving FY 2026-27 GANN Appropriation Limit a. Exhibit A – GANN Limit Calculation
b. Exhibit B – Appropriations Limit Analysis (FY2026-27)

3. Resolution Approving Measure A Workplan for FY 2026-27 PRELIMINARY FISCAL YEAR 2026-27 PROPOSED BUDGET / Page: 25 a. Exhibit A – Draft Measure A Workplan

4. FY 2026-27 Workplan Supporting Three-Year Strategic Plan

5. Updated Three-Year Capital Improvement Program (FY 2026-27 through FY 2028-29) Attachment 1
1 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL

APPROVING THE CITYWIDE BUDGET AND CAPITAL IMPROVEMENT
PROGRAM FOR THE FISCAL YEAR 2026-27 AND PROVIDING FOR THE

APPROPRIATIONS AND EXPENDITURE OF ALL SUMS SET FORTH IN THE BUDGET IN THE AMOUNT OF $208,222,108, WITH NET
APPROPRIATIONS OF $177,550,935
WHEREAS, on May 18, 2026, City staff presented to the San Rafael City Council at its regular meeting the proposed City-wide Operating budget and a Capital Improvement Program for the fiscal year July 1, 2026 – June 30, 2027; and WHEREAS, after examination, deliberation, and due consideration of the Goals and Objectives, Capital Improvement Program, City-wide Operating Budget, and corresponding staff recommendations, the San Rafael City Council provided direction to the City Manager, and the City Manager has submitted a Final Proposed Budget; and WHEREAS, it is the intention of this Council to adopt the Proposed Budget submitted by the City Manager as the approved budget for the fiscal year 2026-2027; and WHEREAS, it is the intention of this Council to carry forward unspent capital project resources funded in fiscal year 2025-2026 to complete the balance of these projects in the 2029-2027 fiscal year; and
WHEREAS, it is the intention of this Council to carry forward unspent operational funds from fiscal year 2025-2026 encumbered through approved, active purchase orders to complete the balance of these purchases in the 2026-2027 fiscal year; NOW, THEREFORE, BE IT RESOLVED by the San Rafael City Council that:

1. The City Manager’s Proposed Budget for the City of San Rafael for the fiscal year July 1, 2026, through June 30, 2027, is hereby adopted, with total appropriations of $208,222,108 and net appropriations of $177,550,935 across all funds, as presented in Exhibit I attached hereto and incorporated herein.

2. General Fund appropriations total $115,761,674 as presented in Exhibit I attached hereto and incorporated herein. A total of $783,749 is appropriated for General Plan support, $46,301,495 is appropriated for special revenue and grant activities, $4,706,265 is appropriated for the parking enterprise fund, $4,731,848 is appropriated from capital project funds, $33,817,199 for internal service funds and asset replacement, and $155,255 is appropriated in trust and agency funds as presented in Exhibit I attached hereto and incorporated herein.

Attachment 1
2 3. The sums of money therein set forth are hereby appropriated from the revenues of the City to the departments, functions, programs and funds therein set forth for expenditure during the fiscal year 2026-2027.

4. The Capital Improvement Program and projects presented for implementation in fiscal year 2026-2027 are hereby approved.

5. The budget authorizes a staffing level of 419.55 full-time equivalent authorized positions, as presented in Exhibit V.

6. The City of San Rafael will carry forward unspent encumbered capital project and operating funds from fiscal year 2025-2026 and reappropriate these funds in fiscal year 2026-2027 to be used solely to pay for the remaining portion of executed contracts and purchase orders, as of June 30, 2026. Unencumbered funds from fiscal year 2025-2026 supporting City Council authorized expenditures for street, facility, storm drain, traffic mitigation, park, and other long-term capital projects started in the 2025-2026 or prior fiscal years will require re-appropriation through future City Council action.

7. Transfers totaling $6,384,549 as reflected in Exhibit I are hereby authorized. This includes General Fund transfers totaling $4,646,527 from the General Fund to the Essential Facilities Fund ($398,000), Liability Fund ($1,600,000, Capital Improvement Fund ($2,00,000), and Grants Fund ($648,527).

I, LINDSAY LARA, 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 Council of said City on Monday, the 15th day of June 2026, by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________
LINDSAY LARA, City Clerk
FY2026-27 FINAL BUDGET REVENUES AND

APPROPRIATIONS BY FUND

EXHIBIT I

CITY OF SAN RAFAEL
346,929.00 346,929.00 298,012.00
Total Total Total
FY 2024-25 PROJECTED BUDGET Est.Actual Operating Operating Capital June 30, 2027 FUND FUND June 30, 2026 and Capital Transfers Total Transfers to Total Projected # NAME Balance Revenue In Resources Budget Budget Other Funds Appropriations Balance GENERAL OPERATING FUNDS:
101 General Fund Available Balance $23,208,204 $110,456,843 $1,313,826 $111,770,669 111,115,147 - 4,646,527 115,761,674 $19,217,199 102 General Plan Special Revenue Fund 2,085,482 656,492 - 656,492 783,749 - - 783,749 1,958,224 SPECIAL REVENUE & GRANT FUNDS:
205 Storm Water Fund 592,636 7,209,325 - 7,209,325 960,000 3,596,000 - 4,556,000 3,245,961 206 Gas Tax 9,825,329 10,226,636 - 10,226,636 3,801,000 6,920,000 650,000 11,371,000 8,680,965 207 Development Services 4,313 8,401 - 8,401 - - - - 12,714 208 Child Care 535,862 4,511,273 - 4,511,273 4,041,481 - - 4,041,481 1,005,653 210 Paramedic/EMS 3,041,238 10,363,427 - 10,363,427 11,105,174 - - 11,105,174 2,299,491 216 Cannabis 336,452 178,911 - 178,911 148,890 - 319,196 468,086 47,277 217 State Lands Fund 565,586 59,327 - 59,327 - - - - 624,913 222 Recreation Revolving - 1,042,900 - 1,042,900 1,042,900 - - 1,042,900 - 223 Household Haz. Waste Fund - - - - - - - - -
228 Hazardous Materials Fund 55,251 - - - - - - - 55,251 234 Pt. San Pedro A.D. Maintenance Portion 184,181 197,424 - 197,424 195,500 - - 195,500 186,105 235 Baypoint Lagoons L & L Assessment District 236,730 33,961 - 33,961 25,400 - - 25,400 245,291 236 Loch Lomond CFD #10 912,547 58,738 - 58,738 58,000 - - 58,000 913,285 237 Loch Lomond Marina CFD #2 1,381,944 344,799 - 344,799 289,140 - - 289,140 1,437,603 240 Parkland Dedication 380,990 - - - - - - - 380,990
241 Measure A Open Space 240,385 605,906 - 605,906 100,004 510,000 - 610,004 236,287 242 Measure C Wildfire Prevention 1,722,856 4,149,896 - 4,149,896 4,905,294 10,000 200,000 5,115,294 757,458 244 Low and moderate Income Housing Fund 1,941,216 5,591 - 5,591 85,770 - - 85,770 1,861,037 LIBRARY AND FALKIRK:
214 Library Revolving 1,833,253 98,484 - 98,484 166,000 - - 166,000 1,765,737 215 Library Special Assessment Fund 238,237 1,254,168 - 1,254,168 1,275,161 - - 1,275,161 217,244 Library Fund 2,071,490 1,352,652 - 1,352,652 1,441,161 - - 1,441,161 1,982,982 PUBLIC SAFETY:
203 Abandoned Vehicle 72 85,000 105,000 190,000 143,990 - - 143,990 46,082 202 Asset Seizure 3,704 - - - - - - - 3,704
204 Crime Prevention 8,573 - - - - - - - 8,573
230 Youth Services - Police 12,176 15,000 - 15,000 27,176 - - 27,176 - Public Safety Fund 24,525 100,000 105,000 205,000 171,166 - - 171,166 58,359 TRAFFIC AND HOUSING:
243 Affordable Housing in lieu 3,368,336 1,073,389 - 1,073,389 353,000 - - 353,000 4,088,725 245 Housing & Parking In-lieu 400,230 11,712 - 11,712 - - - - 411,942 246 East S.R. Traffic Mitigation 1,783,318 415,317 - 415,317 500,000 400,000 - 900,000 1,298,635 Traffic & Housing Mitigation Funds 5,551,884 1,500,418 - 1,500,418 853,000 400,000 - 1,253,000 5,799,302 GRANT:
201 A.D.A.. Access Projects - - - - - - - - -
260 Pickleweed Childcare Grant 741,985 858,907 - 858,907 905,929 - - 905,929 694,963 281 Public Safety Grants 657,877 346,447 467,723 814,170 1,332,851 - - 1,332,851 139,196 283 Grant-Other 10,000 2,224,238 500,000 2,724,238 2,233,639 - - 2,233,639 500,599 Grant Funds 1,409,862 3,429,592 967,723 4,397,315 4,472,419 - - 4,472,419 1,334,758 SPECIAL REVENUE & GRANT FUND TOTAL 31,015,277 45,379,175 1,072,723 46,451,898 33,696,299 11,436,000 1,169,196 46,301,495 31,165,680

CONSOLIDATED FUNDS
https://cityofsanrafael.sharepoint.com/sites/Finance/Shared Documents/General/Accounting and Budgeting/Budget/26-27/_Next Step/_Fund Sums FY27 2026.06.02 FY2025-26 PROPOSED BUDGET

REVENUES AND APPROPRIATIONS BY FUND

EXHIBIT I

CITY OF SAN RAFAEL
346,929.00 346,929.00 298,012.00
Total Total Total 108,995
FY 2024-25 PROJECTED BUDGET Est.Actual Operating Operating Capital June 30, 2027 FUND FUND June 30, 2026 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 306,452 - - - - - - - 306,452 ASSESSMENT DISTRICT TOTAL 306,452 - - - - - - - 306,452 CAPITAL PROJECT FUNDS:
401 Capital Improvement 2,276,942 526,956 2,000,000 2,526,956 489,048 3,350,000 - 3,839,048 964,850 405 Open Space Acquisition 129,978 4,035 - 4,035 - - - - 134,013 406 Bedroom Tax 163,213 5,085 - 5,085 - - - - 168,298
407 Parks Capital Projects 21,823 - - - 12,800 - - 12,800 9,023 420 Measure E - Public Safety Facilities 2,841,630 106,505 398,000 504,505 150,000 730,000 - 880,000 2,466,135 430 Measure P - Library Project 4,695,000 6,777,588 - 6,777,588 167,623 1,800,000 - 1,967,623 9,504,965 CAPITAL PROJECT FUND TOTAL 5,433,586 642,581 2,398,000 3,040,581 651,848 4,080,000 - 4,731,848 3,742,320 ENTERPRISE FUND:
501 Parking Services 408,317 5,284,260 - 5,284,260 4,137,439 - 568,826 4,706,265 986,312 ENTERPRISE FUND TOTAL 408,317 5,284,260 - 5,284,260 4,137,439 - 568,826 4,706,265 986,312 INTERNAL SERVICE FUNDS:
614 Sewer Maintenance - 3,905,733 - 3,905,733 3,905,733 - - 3,905,733 - 621 Vehicle Replacement 15,987,356 4,055,771 - 4,055,771 1,957,826 530,000 - 2,487,826 17,555,301 612 Technology Replacement 2,869,115 3,046,986 - 3,046,986 3,584,198 - - 3,584,198 2,331,903 625 Fire Equipment Replacement 790,695 171,276 - 171,276 131,000 425,000 - 556,000 405,971 611 Building Improvement 10,450,819 4,354,472 - 4,354,472 4,136,607 2,650,000 - 6,786,607 8,018,684 641 Employee Benefits 318,894 2,091,266 - 2,091,266 1,413,289 - - 1,413,289 996,871 631 Liability Insurance 1,391,161 3,096,050 1,600,000 4,696,050 4,780,399 - - 4,780,399 1,306,812 632 Workers Compensation Insurance 2,440,786 3,601,029 - 3,601,029 3,963,847 - - 3,963,847 2,077,967 633 Dental Insurance 705,198 490,400 - 490,400 495,000 - - 495,000 700,598 622 Radio Replacement 465,594 467,728 - 467,728 555,000 - - 555,000 378,322 623 Telephone/Internet 492,154 746,150 - 746,150 725,300 - - 725,300 513,004 642 Employee Retirement 558,245 31,732 - 31,732 4,000 - - 4,000 585,977 643 Retiree Health Benefit OPEB 1,818,148 4,840,409 - 4,840,409 4,430,000 - - 4,430,000 2,228,557 624 Police Equipment Replacement 246,646 231,467 - 231,467 130,000 - - 130,000 348,113 INTERNAL SERVICE FUND TOTAL 38,534,811 31,130,468 1,600,000 32,730,468 30,212,199 3,605,000 - 33,817,199 37,448,080 TRUST AND AGENCY FUNDS:
213 Library Fiduciary 565,364 13,461 - 13,461 - - - - 578,825 714 Pt. San Pedro Assessment District 86,045 158,908 - 158,908 152,255 - - 152,255 92,698 TRUST & AGENCY FUND TOTAL 565,364 13,461 - 13,461 152,255 - - 152,255 671,523 -
COMBINED FUNDS TOTAL 106,338,538 200,499,776 6,384,549 206,884,325 180,916,559 20,921,000 6,384,549 208,222,108 105,000,755 LESS: INTERFUND TRANSFER (6,384,549) (6,384,549) (6,384,549) (6,384,549) LESS: INTERNAL SERVICE CHARGES (24,214,302) (24,214,302) (24,286,625) (24,286,625) NET TOTALS FY 2026-27 106,338,538 176,285,475 - 176,285,475 156,629,935 20,921,000 - 177,550,935 105,000,755 https://cityofsanrafael.sharepoint.com/sites/Finance/Shared Documents/General/Accounting and Budgeting/Budget/26-27/_Next Step/_Fund Sums FY27 2026.06.02 I I
I I

ALL FUNDS
FY 20256-27 PROPOSED BUDGET
Revenues and Expenditures
Exhibit II
FY25-26
Adopted Budget
FY26-27
Proposed Budget
%
Change $ Change

REVENUES & OTHER SOURCES
Taxes 100,627,907 $ 112,617,661 $ 11.9% 11,989,754 $
Licenses and Permits 3,118,196 3,687,158 $ 18.2% 568,962 Fines and Forfeitures 2,734,000 2,950,265 $ 7.9% 216,265 Use of Money 4,391,369 4,328,812 $ -1.4% (62,557)
Intergovernmental 25,429,289 17,462,997 $ -31.3% (7,966,292) Charges for Services 22,909,953 25,715,182 $ 12.2% 2,805,229 Other Revenues 18,866,779 33,737,702 $ 78.8% 14,870,923 Transfers In 11,175,910 6,384,549 $ -42.9% (4,791,361)
TOTAL SOURCES $ 189,253,404 $ 206,884,325 9.3% $ 17,630,922

EXPENDITURES AND OTHER USES
Expenditures by Department
Finance 3,463,858 3,504,788 1.2% 40,930
Non-Departmental 7,879,210 6,377,764 -19.1% (1,501,446) City Manager 6,679,835 6,323,665 -5.3% (356,170)
City Clerk 1,029,218 970,332 -5.7% (58,886)
Digital Service 6,602,845 6,845,548 3.7% 242,703
Human Resources 14,521,747 15,836,899 9.1% 1,315,152
Parking 4,153,415 4,119,415 -0.8% (34,000)
City Attorney 1,646,060 1,582,283 -3.9% (63,777)
Community and Economic Development 8,513,344 8,968,058 5.3% 454,714 Police 32,051,847 34,487,044 7.6% 2,435,197
Fire 40,102,811 44,995,686 12.2% 4,892,875
Public Works 39,465,156 47,794,638 21.1% 8,329,482
Library 5,323,707 5,560,618 4.5% 236,911
Recreation 9,673,475 14,258,211 47.4% 4,584,736
City Council - 212,610 0.0% 212,610
Transfers out 11,175,910 6,384,549 -42.9% (4,791,361)
TOTAL USES $ 192,282,438 $ 208,222,108 8.3% $ 15,939,670 NET OPERATING RESULTS $ (3,029,034) $ (1,337,783) -55.8% $ 1,691,252

Expenditure Category
FY25-26
Adopted Budget
FY26-27
Proposed Budget
%
Change $ Change
Salaries 59,342,173 $ 62,479,589 $
Fringe Benefits 46,436,787 48,522,621
Sub-Total Personnel $ 105,778,960 $ 111,002,210 4.9% $ 5,223,250 Services 38,756,307 42,177,280 8.8% 3,420,973
Supplies 4,025,434 3,910,114 -2.9% (115,320)
Utilities/Communications 2,766,790 3,375,769 22.0% 608,979 Other 4,144,032 310,212 -92.5% (3,833,820)
Debt Service 5,707,156 5,024,710 -12.0% (682,446)
Assets Purchased 11,028,204 20,921,000 89.7% 9,892,796
Internal Service Charges 8,899,645 15,116,264 69.9% 6,216,619 Transfers 11,175,910 6,384,549 -42.9% (4,791,361)
Total Appropriations $ 192,282,438 $ 208,222,108 8.3% $ 15,939,670

GENERAL FUND
FY 2026-27 PROPOSED BUDGET
Revenues and Expenditures
Exhibit III
FY25-26
Adopted Budget
FY26-27
Proposed Budget % Change $ Change

REVENUES & OTHER OPERATIONAL SOURCES
Taxes
Property Tax and related 27,808,576 $ 28,892,530 $ 3.9% 1,083,954 Sales Tax 25,409,165 26,861,766 5.7% 1,452,601
Sales Tax -Measure E 14,609,000 15,220,000 4.2% 611,000 Sales Tax -Measure R 4,870,000 5,073,000 4.2% 203,000
Franchise Tax 4,951,000 4,903,371 -1.0% (47,629)
Business Tax 2,800,000 2,884,000 3.0% 84,000
Transient Occupancy Tax 3,900,000 3,715,035 -4.7% (184,965) Other Agencies
CSA #19 Fire Service 2,881,425 3,057,863 6.1% 176,438
VLF Backfill 7,786,809 8,113,985 4.2% 327,176
Other Agencies (Prop 172, Owner Prop Tax, State Mandate, Other agencies) 1,245,565 1,126,401 -9.6% (119,164) Other Revenues
Permits & Licenses (building, electrical, encroachment, use, alarm) 3,118,196 3,687,158 18.2% 568,962 Fine & Forfeitures (traffic, vehicle, etc.) 234,000 350,265 49.7% 116,265 Interest & Rents (investment earnings, rents, etc.) 1,464,558 792,155 -45.9% (672,403) Charges for Services (includes dev't fees and plan review) 2,496,953 4,579,425 83.4% 2,082,472 Other Revenue (damage reimbursements, misc income) 455,115 1,199,890 163.6% 744,775 Sub-total: Revenues 104,030,362 $ 110,456,843 $ 6.2% 6,426,481 $

TRANSFERS IN
from Gas Tax 650,000 650,000 0.0% -
from Parking Services Fund - Admin. cost 477,993 463,826 -3.0% (14,167) from Wildfire Mitigation Fund - Admin. Cost - 200,000 0.0% 200,000 from Cannabis Fund - SAFE Team 550,000 - -100.0% (550,000) from Employee Retirement Fund - POB debt payment 682,500 - -100.0% (682,500) Sub-total: Transfers In $ 2,360,493 $ 1,313,826 -44.3% $ (1,046,667) TOTAL SOURCES $ 106,390,855 $ 111,770,669 5.1% $ 5,379,814

EXPENDITURES AND OTHER OPERATIONAL USES
Expenditures by Department
Finance 2,522,312 2,661,485 5.5% 139,173
Non-Departmental 7,761,848 6,377,764 -17.8% (1,384,084) City Manager 5,264,286 4,448,407 -15.5% (815,879)
City Clerk 1,029,218 970,332 -5.7% (58,886)
Digital Service 2,418,449 2,536,054 4.9% 117,605
Human Resources 1,044,641 1,101,683 5.5% 57,042
City Attorney 1,353,983 1,230,964 -9.1% (123,019)
Community and Economic Development 6,644,754 7,164,454 7.8% 519,700 Police 30,870,956 32,516,766 5.3% 1,645,810
Fire 25,981,329 28,847,311 11.0% 2,865,982
Public Works 16,114,681 14,182,761 -12.0% (1,931,920)
Library and Recreation 3,531,973 8,864,558 151.0% 5,332,585 City Council - 212,610 0.0% 212,610
Sub-total: Expenditures 104,538,430 $ 111,115,147 $ 6.3% 6,576,717 $

OPERATIONAL TRANSFERS OUT
to Recreation Fund - Operating support 2,420,000 -100.0% (2,420,000) to Essential Facilities Fund - Measure E 290,417 398,000 37.0% 107,583 to Liability Fund 2,500,000 1,600,000 -36.0% (900,000)
to Capital Improvement Fund 1,500,000 2,000,000 33.3% 500,000 to Gas Tax 1,000,000 -100.0% (1,000,000)
to Vehicle Replacement Fund 1,000,000 -100.0% (1,000,000) to Grants Fund 648,527 0.0% 648,527
Sub-total: Transfers Out $ 8,710,417 $ 4,646,527 -46.7% $ (4,063,890) TOTAL USES $ 113,248,847 $ 115,761,674 2.2% $ 2,512,827 NET OPERATING RESULTS $ (6,857,992) $ (3,991,005) $ 2,866,987 Expenditure Category
FY25-26
Adopted Budget
FY26-27
Proposed Budget % Change $ Change
Salaries $ 45,905,819 42,957,026 $
Fringe Benefits 33,906,461 32,533,126
Sub-Total Personnel 75,490,152 $ 79,812,279 $ 5.7% 4,322,127 $ Services 10,567,560 10,965,383 -3.6% (397,823)
Supplies 1,207,685 1,523,480 -20.7% (315,795)
Utilities/Communications 1,009,942 1,603,150 -37.0% (593,208) Other 73,712 1,665,055 -95.6% (1,591,343)
Debt Service 4,772,398 5,440,792 -12.3% (668,394)
Assets Purchased - - 0.0% -
Internal Service Charges 13,671,571 7,850,418 74.2% 5,821,153 Transfers 8,710,417 4,646,527 -46.7% (4,063,890)
Total Appropriations 113,248,847 $ 115,761,674 $ 2.2% 2,512,827

CITY OF SAN RAFAEL
Authorized Positions EXHIBIT IV
Proposed
Adopted Changes Final Changes Proposed
Departments 2025-2026 2025-2026 2025-2026 2026-2027 2026-2027 Regular
Community Development 24.00 - 24.00 24.00
Community Services 42.28 42.28 3.40 45.68
City Attorney 3.50 3.50 3.50
City Clerk 3.00 3.00 3.00
City Manager 16.00 11.00 (1.00) 10.00
City Council 5.00 5.00
Economic Development (Move to CDD) - - -
Finance 10.00 10.00 (1.00) 9.00
Fire 83.00 5.00 88.00 2.00 90.00
Library 21.31 21.31 21.31
Human Resources 7.00 7.00 7.00
Digital 9.00 9.00 9.00
Parking 16.63 16.63 16.63
Police 93.00 93.00 93.00
Public Works 50.00 50.00 3.00 53.00
SRSD 17.00 17.00 17.00
Sub - Total Regular Positions 395.72 5.00 400.72 6.40 407.12 Fixed Term
Community Development - - - -
City Manager/Council 0.72 0.72 0.72
Community Services 0.71 0.71 0.71
Economic Development (former RDA) - - -
Finance - - -
Fire 10.00 (7.00) 3.00 1.00 4.00
Library - - -
Parking 2.00 2.00 2.00
Police 1.00 1.00 1.00
Public Works 4.00 (0.47) 3.53 (3.00) 0.53
SRSD 2.00 2.00 2.00
Sub - Total Fixed-Term Positions 20.43 (7.47) 12.96 (2.00) 10.96 Total Budgeted Positions 416.15 (2.47) 413.68 4.40 418.08 Authorized, unbudgeted - extended absence/no cost - - - - - Total Authorized Positions 416.15 (2.47) 413.68 4.40 418.08 General Notes:

The above-authorized positions are presented as fulltime equivalent employees (FTE's) based on various workweek hours as negotiated in employee agreements.

The totals by department reflect a combination of fulltime 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/26-27/PERSONNEL/_Authorized Positions FY26-27-Van Work Book

PROPOSED CURRENT CHANGE
FY 26-27 FY25-26
Positions
ACCOUNTANT I 1.00 1.00 -
ACCOUNTANT II 1.00 1.00 -
ACCOUNTING ASSISTANT II 1.00 1.00 -
ACCOUNTING MANAGER 1.00 1.00 -
ADMIN ASSISTANT TO POL CHIEF 1.00 1.00 -
ADMINISTRATIVE ANALYST 5.75 4.75 1.00
ADMINISTRATIVE ASSISTANT II 5.00 6.00 (1.00)
ADVANCED PROFESSIONAL TEMP 2.72 0.72 2.00
ASSISTANT CITY MANAGER 2.00 2.00 -

ASSISTANT COMMUNITY & ECONOMIC
DEVELOPMENT DIRECTOR 2.00 - 2.00
ASSISTANT ENGINEER 3.00 2.00 1.00
ASSISTANT PLANNER 1.00 1.00 -
ASSOCIATE CIVIL ENGINEER 1.00 3.00 (2.00)
ASSOCIATE PLANNER 1.00 1.00 -
ASST LIB & REC DIRECTOR/CITY LIBRARIAN 1.00 1.00 -
ASST LIBRARY & REC DIRECTOR 1.00 1.00 -
ASST PUBLIC WORKS DIRECTOR 1.00 1.00 -
BUILDING INSPECTOR I 1.00 1.00 -
BUILDING INSPECTOR II 1.00 1.00 -
CHIEF ASSISTANT CITY ATTORNEY 1.00 1.00 -
CHILD CARE INSTRUCTOR I 2.00 - 2.00
CHILD CARE INSTRUCTOR II 15.95 15.95 -
CHILD CARE SPECIALIST 0.71 0.71 -
CHILD CARE SUPERVISOR 9.00 8.60 0.40
CITY ATTORNEY 0.50 0.50 -
CITY CLERK 1.00 1.00 -
CITY MANAGER 1.00 1.00 -
CIVIC ENGAGEMENT MANAGER 1.00 1.00 -
CLIMATE ADAPT & RES PLANNER 1.00 1.00 -
CODE ENFORCEMENT OFFICER II 1.00 1.00 -
CODE ENFORCEMENT OFFICIAL I 2.00 2.00 -
COMMUNITY SERVICE OFFICER 2.00 2.00 -
COMMUNITY SERVICES DIVISION DIRECTOR 1.00 1.00 -
CONSTRUCTION INSPECTOR 1.00 1.00 -
COUNCIL MEMBER 4.00 4.00 -
CUSTODIAN 2.70 2.70 -
DATA ANALYST III 1.00 1.00 -
DEPUTY BUILDING OFFICIAL 1.00 1.00 -
DEPUTY CITY ATTORNEY II 1.00 1.00 -

CITY OF SAN RAFAEL
Authorized Positions
Exhibit V
DEPUTY CITY CLERK II 2.00 2.00 -
DEPUTY DIRECTOR OF EMERGENCY MGMT 1.00 1.00 -
DEPUTY FIRE MARSHAL 1.00 1.00 -
DEPUTY PUBLIC WORKS ADMINISTRATIVE DIRECTOR 1.00 1.00 - DIGITAL & INFRASTRUCTURE MANAGER 1.00 1.00 -
DIGITAL SERVICES ANALYST 1.00 1.00 -

DIRECTOR OF COMMUNITY & ECONOMIC
DEVELOPMENT 1.00 1.00 -
DIRECTOR OF DSOG 1.00 1.00 -
DIRECTOR OF HUMAN RESOURCES 1.00 1.00 -
DISTRICT MANAGER/ENGINEER 1.00 1.00 -
EMERGENCY MGMT COORDINATOR I 1.00 1.00 -
EMERGENCY MGMT COORDINATOR II 1.00 1.00 -
ENVIRONMENTAL MGMT COORD - 1.00 (1.00)
EXECUTIVE ASSISTANT 1.00 1.00 -
EXECUTIVE PROFESSIONAL TEMP 0.53 0.53 -
FACILITY REPAIR SUPERVISOR 1.00 1.00 -
FACILITY REPAIR WORKER III 2.00 2.00 -
FINANCE DIRECTOR 1.00 1.00 -
FINANCE MANAGER 1.00 1.00 -
FIRE BATT CHIEF 4.00 4.00 -
FIRE CAPTAIN 19.00 19.00 -
FIRE CHIEF 1.00 1.00 -
FIRE ENGINEER 18.00 18.00 -
FIRE MECHANIC 1.00 1.00 -
FIRE PREVENTION INSP. I 1.00 1.00 -
FIRE PREVENTION INSP. II 1.00 1.00 -
FIREFIGHTER-PARAMEDIC 34.00 32.00 2.00
HOUSING MANAGER 1.00 1.00 -
HUMAN RESOURCES ASSISTANT 1.00 1.00 -
HUMAN RESOURCES OPERATIONS MANAGER 1.00 1.00 -
HUMAN RESOURCES REPRESENTATIVE II 1.00 1.00 -
JUNIOR ENGINEER 3.00 3.00 -
LEAD PUMP STATION MECHANIC 1.00 1.00 -
LEGAL ASSISTANT I 1.00 1.00 -
LIBRARIAN I 1.00 1.00 -
LIBRARIAN II 5.00 5.00 -
LIBRARY & RECREATION DIRECTOR 1.00 1.00 -
LIBRARY AIDE 1.06 1.06 -
LIBRARY ASSISTANT I 2.64 2.64 -
LIBRARY ASSISTANT II 0.64 0.64 -
LIBRARY SERVICES SUPERVISOR 1.00 1.00 -
MANAGEMENT ANALYST 1.00 1.00 -
MARKETING COORDINATOR 1.00 1.00 -
MAYOR 1.00 1.00 -
MENTAL HEALTH LIAISON 1.00 1.00 -
NETWORK ANALYST 1.00 1.00 -
OFFICE ASSISTANT II 3.00 3.00 -
OPERATIONS & MAINTENANCE MANAGER 2.00 2.00 -
OPERATIONS & MAINTENANCE SUPERINTENDENT 1.00 1.00 -
PARK EQUIPMENT MECHANIC 1.00 1.00 -
PARKING ATTENDANT I 1.38 1.38 -
PARKING ATTENDANT II 2.75 2.75 -
PARKING ENFORCEMENT OFFICER 7.00 7.00 -
PARKING EQUIPMENT TECHNICIAN 3.00 3.00 -
PARKING OPERATIONS SUPERVISOR 0.75 0.75 -
PARKING SERVICES MANAGER 1.00 1.00 -
PARKS LEAD MAINTENANCE WORKER 2.00 2.00 -
PARKS MAINTENANCE SUPERVISOR 2.00 2.00 -
PARKS MAINTENANCE WORKER I 4.00 2.00 2.00
PARKS MAINTENANCE WORKER II 5.00 5.00 -
PAYROLL ADMINISTRATOR 1.00 1.00 -
PAYROLL TECHNICIAN 1.00 1.00 -
PERMIT TECHNICIAN I 3.00 3.00 -
PLANNING MANAGER 1.00 1.00 -
POLICE ADMINISTRATIVE TECHNICIAN II 1.00 1.00 -
POLICE CADET 3.00 3.00 -
POLICE CALL TAKER/RECORDS SPEC 5.00 5.00 -
POLICE CAPTAIN 2.00 2.00 -
POLICE CHIEF 1.00 1.00 -
POLICE COMM DISPATCHER 8.00 8.00 -
POLICE CORPORAL 9.00 9.00 -
POLICE EVIDENCE AND PROP TECH 1.00 1.00 -
POLICE LEAD COMM. DISPATCHER 2.00 2.00 -
POLICE LIEUTENANT 4.00 4.00 -
POLICE OFFICER 40.00 40.00 -
POLICE RECRUIT 3.00 3.00 -
POLICE SERGEANT 9.00 9.00 -
POLICE SUPPORT SERVICES SUPERV 1.00 1.00 -
PRINCIPAL CIVIL ENGINEER 2.00 2.00 -
PRINCIPAL PLANNER 2.00 2.00 -
PRODUCT MANAGER 3.00 3.00 -
PROFESSIONAL TEMP 4.00 5.00 (1.00)
PROGRAM ANALYST 1.00 1.00 -
PROGRAM COORDINATOR 5.00 5.00 -
PUBLIC WORKS DIRECTOR 1.00 1.00 -
PUBLIC WORKS INSPECTOR 1.00 1.00 -
RECREATION SUPERVISOR 2.00 2.00 -
RISK MANAGER 1.00 1.00 -
SENIOR ACCOUNTING ASSISTANT 2.00 2.00 -
SENIOR ADMINISTRATIVE ASSISTANT 1.00 1.00 -
SENIOR ADMINISTRATIVE ASST 1.00 1.00 -
SENIOR BUILDING INSPECTOR 1.00 1.00 -
SENIOR CIVIL ENGINEER 2.00 1.00 1.00
SENIOR CODE ENFORCEMENT SUPERVISOR 1.00 1.00 -
SENIOR HUMAN RESOURCES ANALYST 1.00 1.00 -
SENIOR LIBRARIAN 3.00 3.00 -
SENIOR LIBRARY ASSISTANT 3.00 3.00 -
SENIOR MANAGEMENT ANALYST II 7.00 8.00 (1.00)
SENIOR PROJECT MANAGER 1.00 1.00 -
SENIOR RECREATION SUPERVISOR 2.00 2.00 -
SEWER LEAD MAINTENANCE WORKER 2.00 2.00 -
SEWER MAINTENANCE WORKER I 1.00 1.00 -
SEWER MAINTENANCE WORKER II 5.00 5.00 -
SEWERS SUPERVISOR 1.00 1.00 -
SHOP & EQUIPMENT SUPERVISOR 1.00 1.00 -
STREET LEAD MAINTENANCE WORKER 2.00 2.00 -
STREET MAINTENANCE SUPERVISOR 2.00 2.00 -
STREET MAINTENANCE WORKER I 2.00 2.00 -
STREET MAINTENANCE WORKER II 3.00 3.00 -
STREET SWEEPER 1.00 1.00 -
STREETS MAINTENANCE 1.00 2.00 (1.00)
SUPERVISING LIBRARIAN 1.00 1.00 -
SUSTAINABILITY PROGRAM MANAGER 1.00 1.00 -
SWEEPER OPERATOR 2.00 2.00 -
TRAFFIC ENGINEERING TECHNICIAN I 1.00 1.00 -
VEHICLE EQUIPMENT MECH II 2.00 2.00 -
WILDFIRE MITIGATION PROGRAM MANAGER 1.00 1.00 -
WILDFIRE MITIGATION SPECIALIST I 1.00 1.00 -
WILDFIRE MITIGATION SPECIALIST II 1.00 1.00 -
WILDFIRE MITIGATION SPECIALIST III 1.00 1.00 -
Grand Total 418.08 413.68 4.4
Exhibit VI
Final Final Final Final Final Final Final Final Final Proposed Departments 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-25 2025-26 2026-27 Community Development 21.00 21.00 20.75 20.75 22.00 23.00 24.00 26.00 24.00 24.00 Community Services 59.43 60.90 54.90 54.90 54.90 56.90 43.98 43.98 42.28 45.68 City Attorney 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 City Clerk 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 3.00 City Manager 6.56 6.56 6.56 6.56 5.56 6.56 8.56 8.56 11.00 10.00 Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Economic Development (moved to CED) - 2.00 2.00 2.00 1.00 1.00 2.00 0.00 0.00 0.00 Finance 9.72 9.72 9.72 9.72 11.00 11.00 10.00 10.00 10.00 9.00 Fire 78.00 78.00 78.00 78.00 80.00 82.00 82.00 82.00 88.00 90.00 Library 23.41 23.41 21.66 21.66 21.66 21.66 21.96 21.96 21.31 21.31 Human Resources 4.00 4.00 4.00 4.00 3.00 4.00 4.00 4.00 7.00 7.00 Digital Services (Formerly IT) 6.70 9.70 8.70 8.00 8.00 8.00 7.00 7.00 9.00 9.00 Parking Services 16.63 16.63 16.63 16.63 16.63 16.63 16.63 16.63 16.63 16.63 Police 90.00 92.00 92.00 94.00 93.00 93.00 93.00 93.00 93.00 93.00 Public Works 62.00 61.00 63.00 64.00 65.00 65.00 66.00 66.00 67.00 70.00 Fixed-Term 18.53 17.16 16.81 21.01 27.51 25.51 26.71 26.71 12.96 10.96 Citywide Positions 406.48 412.58 405.23 411.73 419.76 424.76 416.34 416.34 413.68 418.08 General Notes:

Figure 1: Graph of Regular and Fixed-Term Staff, 2004 to 2026 Note: Growth in Fixed-Term employees largely due to new Fire Department staff supported by Measure C funding.

City of San Rafael
Authorized Positions
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. 320
340
360
380
400
420
440
460 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 Regular Fixed Term
Attachment 2
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING FISCAL YEAR 2026-27 GANN APPROPRIATIONS LIMIT AT $206,894,864
WHEREAS, California Constitution Article XIIIB, which was approved as Proposition 4 by the voters of the State of California on November 6, 1979, imposes on the state and on each local jurisdiction a limitation on the amount of budget appropriations they are permitted to make annually (the “Appropriations Limit”, sometimes referred to as the “Gann Appropriations Limit”) and limits changes in the Appropriations Limit to an annual adjustment for the change in the cost of living and the change in population; and WHEREAS, California Government Code Section 7910, which implements Article XIIIB, requires that the governing body of each local jurisdiction shall establish its Appropriations Limit at a regularly scheduled meeting or noticed special meeting; and WHEREAS, as permitted by Proposition 111, adopted by the voters in 1990, the City has elected to use the percent change in the population of San Rafael from January 1, 2025 to January 1, 2026, and the percent change in California’s per capita personal income, for the calculation of the annual adjustment to the City’s Appropriations Limit; and WHEREAS, documentation used in the determination of the City’s Appropriations Limit has been available to the public in the Finance Department as provided by Government Code Section 7910;
NOW, THEREFORE, BE IT RESOLVED that the City Council of San Rafael, pursuant to the provisions of Article XIIIB and Government Code Sections 7901 through 7914, does hereby establish the Appropriations Limit for fiscal year 2026-2027 for the City of San Rafael at $206,894,864 as documented in Exhibit A, and further establishes the 2026-2027 Appropriations Subject to the Gann Appropriations Limit at $102,854,268 as documented in Exhibit B, which Exhibits are attached hereto and incorporated herein by reference as though fully set forth.

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting on the City Council of said City held on Monday, the 15th day of June 2026, by the following vote to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_____________________
LINDSAY LARA, City Clerk

EXHIBIT A

GANN LIMITATION CALCULATION
Fiscal Year 2026-27
(A) (B)
Fiscal Cost of Living Change in Population Factor Prior Year Current Year Subject to Variance Year Change in Limitation Limitation Gann Limit Gann 'gap' Assessment
California Roll for Change in Change in
Per Capita Nonresidential Population for Population for Personal Income Or Construction San Rafael Or Marin County (Highest B X (Source : State) (Source : County) (Source: State) (Source: State) Highest A) 94/95 $ 24,635,128
95/96 4.72 0.60 1.22 1.060000 x $ 24,635,128 = $ 26,113,235 96/97 4.67 5.50 1.37 1.43 1.070000 x $ 26,113,235 = $ 27,941,557 97/98 4.67 5.40 2.17 1.64 1.080000 x $ 27,941,557 = $ 30,176,882 98/99 4.15 6.80 1.42 1.56 1.080000 x $ 30,176,882 = $ 32,591,032 99/00 4.53 6.26 1.47 1.62 1.079800 x $ 32,591,032 = $ 35,192,257 00/01 4.91 9.27 1.50 1.82 1.112600 X $ 35,192,257 = $ 39,154,905 01/02 7.82 6.67 0.53 0.72 1.086000 X $ 39,154,905 = $ 42,522,227 02/03 -1.27 5.15 0.69 0.81 1.060000 X $ 42,522,227 = $ 45,073,561 03/04 2.31 2.43 1.45 0.77 1.039152 X $ 45,073,561 = $ 46,838,297 04/05 3.28 2.06 -0.16 2.53 1.058900 X $ 46,838,297 = $ 49,597,072 $ 39,274,542 $ 10,322,530 05/06 5.26 1.59 0.07 0.33 1.056100 X $ 49,597,072 = $ 52,379,468 $ 43,215,534 $ 9,163,934 06/07 3.96 0.57 0.49 0.74 1.047300 X $ 52,379,468 = $ 54,857,017 $ 47,167,477 $ 7,689,540 07/08 a 4.42 2.09 0.97 0.97 1.054300 X $ 54,857,017 = $ 58,867,753 $ 53,279,474 $ 5,588,279 08/09 4.29 2.63 0.68 0.93 1.052600 X $ 58,867,753 = $ 61,964,197 $ 54,394,753 $ 7,569,444 09/10 0.62 6.65 0.57 0.81 1.075100 X $ 61,964,197 = $ 66,617,708 $ 51,368,817 $ 15,248,891 10/11 -2.54 39.62 0.79 0.93 1.409200 X $ 66,617,708 = $ 93,877,675 $ 48,469,424 $ 45,408,251 11/12 b 2.51 -34.13 0.81 0.90 1.034300 X $ 93,877,675 = $ 100,987,679 $ 50,180,413 $ 50,807,266 12/13 3.77 0.12 0.92 1.05 1.048600 X $ 100,987,679 = $ 105,895,680 $ 51,825,702 $ 54,069,978 13/14 c 5.12 2.09 0.34 0.42 1.055600 X $ 105,895,680 = $ 110,641,157 $ 54,313,859 $ 56,327,297 14/15 -0.23 0.85 0.39 0.42 1.012700 X $ 110,641,157 = $ 112,046,300 $ 56,717,201 $ 55,329,098 15/16 d 3.82 7.99 0.60 0.73 1.087800 X $ 112,046,300 = $ 117,140,576 $ 65,177,999 $ 51,962,576 16/17 5.37 0.68 0.12 0.33 1.057200 X $ 117,140,576 = $ 123,841,017 $ 71,967,785 $ 51,873,231 17/18 3.69 0.11 0.25 0.18 1.039500 X $ 123,841,017 = $ 128,732,737 $ 74,893,075 $ 53,839,661 18/19 3.67 0.06 -0.02 0.17 1.038500 X $ 128,732,737 = $ 133,688,947 $ 77,599,200 $ 56,089,748 19/20 3.85 0.26 0.04 -0.01 1.038900 X $ 133,688,947 = $ 138,889,447 $ 82,867,376 $ 56,022,071 20/21 e 3.73 1.91 -0.66 -0.60 1.031100 X $ 138,889,447 = $ 143,208,909 $ 73,554,079 $ 69,654,830 21/22 5.73 1.00 -0.62 -0.43 1.052800 X $ 143,208,909 = $ 150,770,339 $ 82,522,271 $ 68,248,068 22/23 7.55 14.41 -1.01 -1.11 1.132600 X $ 150,770,339 = $ 170,762,486 $ 91,883,786 $ 78,878,700 23/24 4.44 6.02 -0.92 -1.06 1.050500 X $ 170,762,486 = $ 179,385,992 $ 102,494,532 $ 76,891,460 24/25 3.62 1.70 -0.45 -0.53 1.031500 X $ 179,385,992 = $ 185,036,651 $ 113,649,863 $ 71,386,788 25/26 6.44 1.03 -0.05 0.14 1.065900 X $ 185,036,651 = $ 197,230,566 $ 108,014,557 $ 89,216,009 26/27 4.95 3.80 -0.05 -0.74 1.049000 X $ 197,230,566 = $ 206,894,864 $ 102,854,268 $ 104,040,596 = Value selected for Factor calculation
(a) Includes increase for Paramedic Tax Revenue Generated by Measure P (b) Includes increase for Paramedic Tax Revenue Generated by Measure I Note:
(c) Reduce the limit by $1,142,323 to reflect the amount associated with Measure P at the time the limit was increased in fiscal year 2011-2012 for Measure I
(d) 2015-16 - The Limit is reduced by $4,743,389 for the Paramedic Tax - Measure I for the increase of $3,890,000 added in 2011 - 2012 that "Sunset" or Expired after 4 years at the end of 2015.

County assessment roll factor for FY10/11 is an outlier. Recalculated using State per capita income factor for FY10/11 to ensure that the city falls below the Gann limit under each scenario for conservatism.
(e) 2020-21 - Appropriations subject to the limit declined due to both the reduction in budgeted revenues as a result of the COVID-19 pandemic as well as the exclusion of debt service on the 2018 bonds beginning in FY21. $-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
GANN Limit Calculations
Current Year Limitation Subject to Gann Limit
https://cityofsanrafael.sharepoint.com/sites/Finance/Shared Documents/General/Accounting and Budgeting/Budget/26-27/Gann Limit/Gann Limit Calculation 26-27-Exh A - 6/8/2026

EXHIBIT B
City of San Rafael
Appropriation Limit Analysis
FY 2026-27
2026-2027
2026-2027 Less Less Appropriations
Proposed Exempt Non-Tax Subject to
Total Appropriations Fund # Budget Expenditures Revenues Gann Limit General Fund 101 $ 108,823,659 $ 1,094,940 $ 19,704,305 $ 88,024,413 Abandoned Vehicle Abatement Fund 203 143,990 1,434 190,000 - Storm Water Fund 205 4,556,000 - 7,209,325 -
Emergency Medical Services Fund 210 10,945,176 216,027 4,544,058 6,185,091 Library Fund 214 166,000 - 82,063 83,937
Library Special Assessment Fund 215 1,275,161 13,697 - 1,261,464 Measure G - Cannabis 216 468,086 1,121 - 466,965
General Plan Special Revenue Fund 102 783,749 3,201 656,492 124,057 Recreation Revolving Fund 222 5,788,005 49,006 2,860,303 2,878,696 Police Youth Service fund 230 27,176 4 15,000 12,172
Measure A Open Space Fund 241 610,004 - - 610,004
Measure C Wildfire Prevention Parcel Tax 242 5,115,294 37,825 1,870,000 3,207,469 Open Space Fund 405 - - - -
LongTerm Capital Outlay (Excess of $100K &
10yr Life) N/A - - - -
General Fund Debt Service - Capital Outlays N/A 5,014,410 5,014,410 - - Total Appropriations $ 143,716,710 $ 6,431,665 $ 37,131,545 $ 102,854,268 Appropriation Limit from Revised Growth Limit $ 206,894,864 Available Room Under Appropriation Limit $ 104,040,596
https://cityofsanrafael.sharepoint.com/sites/Finance/Shared Documents/General/Accounting and Budgeting/Budget/26-27/Gann Limit/Gann Limit Growth 26-27-Exh B Attachment 3
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING THE

MEASURE A WORK PLAN FOR PROPOSED EXPENDITURE OF MEASURE A FUNDS FOR FISCAL YEAR 2026-2027
WHEREAS, on June 7, 2022, Marin County voters re-approved Measure A, a one-quarter of one percent transactions and use tax, dedicated to parks and open space for the duration of nine years; and
WHEREAS, fifteen percent of the Measure A revenues is earmarked for Marin Cities, Towns, and Applicable Special Districts for the purpose of managing parks, open space preserves, nature preserves, recreation programs and vegetation to promote biodiversity and reduce wildfire risk; and
WHEREAS, the County of Marin is responsible for the administration of the Measure A funds, and has developed a form of agreement and program materials for use by Marin municipalities; and
WHEREAS, the City of San Rafael is eligible to receive Measure A funds, and entered into an agreement with the County of Marin in October of 2013, submitting a Work Plan of Expenditures for the first year of fund disbursement; and
WHEREAS, upon voter reapproval of the Measure in June 2022, the City of San Rafael entered into a new agreement with the County of Marin in October 2022 for disbursement of Measure A Tax Proceeds; and
WHEREAS, the City of San Rafael is projected to receive a total of $579,878 for FY 2026-2027, to support the Work Plan; and
WHEREAS, the County of Marin requires a Work Plan for the proposed Expenditure of Measure A funds in the amount of $640,000 for July 1, 2026 – June 30, 2027; NOW, THEREFORE, BE IT RESOLVED that the San Rafael City Council approves the Measure A Work Plan for Proposed Expenditure of Measure A funds for July 1, 2026 - June 30, 2027, a copy of which is hereby attached and by this reference made a part hereof; and
BE IT FURTHER RESOLVED that the Finance Director is authorized to execute, on behalf of the City of San Rafael, the Work Plan for Proposed Expenditure of Measure A funds for July 1, 2026 to June 30, 2027.

I, LINDSAY LARA, 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 of said City held on Monday, the 15th day of June 2026, by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
__________________________
LINDSAY LARA, City Clerk

Work Plan
Measure A City, Town, and Applicable Special District Program Proposed Expenditure of Measure A Funds for July 1, 2026 to June 30, 2027 Timely and accurate completion of this report is a condition of receiving Measure A funds.

Instructions:
• This work plan must be completed by an authorized representative of the recipient. • Please complete this work plan, then scan and e-mail it to Kevin Wright, Marin County Parks External Affairs Manager ([email protected]), by July 1, 2026.
• Contact Mr. Wright by e-mail ([email protected]) or phone (415) 497-3553 if you have any questions, or if you have suggestions to improve this form.
• Marin County Parks will review this plan within one month of its receipt to ensure that proposed expenditures are consistent with Marin County Ordinance 3586 (Measure A).
• Recipients must provide Marin County Parks with 30-days prior notice of any project additions or substitutions that are proposed while a work plan is in effect.
• Total actual project expenditures may not exceed recipient’s actual Measure A funding for any given fiscal year, plus any balance remaining from previous years.
_______________________________________________________________ This portion of page is intentionally blank. Proceed to next page.

Attachment 3- Exhibit A

A. Name of Recipient (city, town, or special district): __City of San Rafael____________________________________ B. Recipient’s representative and contact information: (Please print all information) Name: Van Bach

Title: Accounting Manager
Address: 1400 Fifth Avenue, Suite 204
City, Zip: San Rafael, CA 94901
Phone:

E-mail:

C. Total estimated funds for Fiscal Year 2025-26:
i. Estimated carry-over
balance of
recipient’s Measure A
funds from
previous fiscal years
ii. Estimate of recipient’s
Measure A funds for
FY 2026-27. (This
information will be
provided by Marin County
Parks)
iii. Total estimated available
funds for FY 26-27
(i + ii).
$770,385 $ 579,977 $1,350,362

D. Recipient’s Measure A Work Plan for Fiscal Year 2026-27:

Name of work or
project:

Primary
purpose of
work or
project.

Select only
one from list
below. **
Description. Be as specific as
possible. Include numbers related
to square footage of facilities,
acreage, etc. If Measure A funds
were used for maintenance, use
numbers to indicate change from
pre-Measure A conditions.

Amount of
Measure A
funds
estimated to
be used:

Source(s)
and
amount(s) of
matching
funds
projected for
use. If none,
enter “0”
Total
expenditures
projected for
work or
project in
current
reporting
year
Routine Maintenance A Peacock Gap Park & Freitas Park
Tennis Court Resurfacing $450,000 0 $450,000
Routine Maintenance A Playground surface (FIBAR)
replenishment $30,000 0 $30,000
Routine Maintenance A Park Restroom Supplemental
Janitorial Services $20,000 0 $20,000
Routine Maintenance A Park Signage Improvement Project $30,000 0 $30,000 Routine Maintenance A Boyd Park Water System Repair
(Set-Aside) $130,000 0 $0
Planning B 620 Canal St. Park Planning $30,000 0 $30,000 Planning B Gerstle Park Play Area and Pathway
Improvement project (Set-Aside) $100,000 0 $0
Planning B Beach Park Seawall Assessment $30,000 0 $30,000 Planning B Montecito Neighborhood Park
Feasibility Study $50,000 0 $50,000
Estimated Total $640,000
**Select work or project purpose only from the following menu:
a) Routine maintenance
b) Renovation of existing recreational facility, including infrastructure (includes planning, environmental review, permitting, design development, etc.) c) Construction of new park or recreation facility (includes planning, environmental review, permitting, design development, etc.) d) Parkland acquisition

e) Fuel reduction - all types of fuel breaks, including primary, ridgeline, etc. f) Flashy fuel reduction (ROW, street ends, trail heads, etc.) g) Natural resource protection and restoration, and invasive plant control h) Maintaining vehicle access
i) Sudden Oak Death
j) Hazard tree removal
k) Inventory and monitoring
l) Wildlife management monitoring
m) Vegetation and wildlife management - OtherE. Certification I certify that the information contained herein is true and accurate, to the best of my knowledge. __________________________________________ _____________________________________________________ Signature Title
__________________________________________ _________________________________ Print Name Date

Attachment 4
Work Plan Projects Starting in FY2026-27
Project Name Council Priority Area Related Objectives Department Tree Ordinance Revision A: Economic Development &
Neighborhood Vitality
A.3.6 Complete a feasibility assessment and phased
implementation plan for the Tree Ordinance revision that prioritizes high-impact, low resource requirements aligned with General Plan 2040 policies. Phase 1 will focus on integrating existing LIDAR inventory data, establishing basic tree protection standards, and developing a multi-year roadmap for expanding the program as resources become available.

Public Works
Asset Management Policy B: Mobility & Infrastructure B.3.2 Assess and track the condition of the City’s assets through the asset management program. Public Works
Fire hardened trails C: Sustainability & Resilience C.3.1 Improve citywide readiness and resilience for disasters and evacuations through outreach and training. Fire Department Evacuation Readiness C: Sustainability & Resilience C.3.1 Improve citywide readiness and resilience for disasters and evacuations through outreach and training. Fire Department Develop and Implement (Disaster Service
Worker) Training and Exercise Plan C: Sustainability & Resilience C.4.1 Develop and implement a multi-year training and exercise plan for Disaster Service Workers and Emergency Operations Center staff in collaboration with other agencies in the County.

Fire Department
Building Evacuation Plan and Signage C: Sustainability & Resilience C.4.2 Review, update and provide continued training for staff on the City’s Emergency Operations Plan. Fire Department
350 Merrydale Affordable Housing Project D: Housing & Homelessness D.1.1 In collaboration with the County of Marin, explore the implementation of a housing-focused interim shelter program, supported by robust case management services to assist in transitioning unhoused community members into permanent supportive housing, or other permanent housing solutions.

Community and
Economic Development
Develop a Homelessness Strategic Plan D: Housing & Homelessness D.1.2 Develop a Homelessness Strategic Action Plan, including community engagement and communications strategies, to guide future work relating to solving homelessness.

City Manager
Evaluate Below Market Rate Program D: Housing & Homelessness D.2.2 Evaluate the Below Market Rate program model and identify opportunities to better leverage affordable housing assets and increase impact.

Community and
Economic Development
Carnegie Re-Use Planning E: Quality of Life
E.3.4 Initiate a public planning process related to the preservation of the historic Carnegie Library for ongoing civic, community, or community-serving commercial uses.

Library and Recreation
Attachment 4

Evaluate Enhanced Library and Recreation
Programs E: Quality of Life
E.5.1 Evaluate library and recreation programs to identify opportunities for improvements in service delivery and enhanced program offerings.

Library and Recreation
Evaluate North San Rafael Library Services E: Quality of Life E.5.2 Evaluate Library Services in North San Rafael. Library and Recreation Citywide Responsiveness and CRM
Discovery F: High Performing Government
F.1.3 Implement a citywide community relationship management (CRM) solution to improve tracking and responsiveness to community questions, code enforcement complaints, and
requests for service.

City Manager
Fair Political Practices Software F: High Performing Government F.2.1 Evaluate, identify, and implement technology solutions, including artificial intelligence, which streamline and improve internal and external processes (i.e., enterprise resource planning, virtual permitting systems, records and information management, website).

City Clerk
Data-Driven Decision Making F: High Performing Government F.2.2 Create and implement a citywide strategic communications plan that improves public messaging, combats misinformation, enhances two-way engagement, and establishes consistent communication practices both within the organization and with the community.

City Manager
Develop City style guide F: High Performing Government
F.2.2 Create and implement a citywide strategic communications plan that improves public messaging, combats misinformation, enhances two-way engagement, and establishes consistent communication practices both within the organization and with the community.

City Manager
San Rafael Police Website (.Gov) F: High Performing Government F.2.3 Update the City’s website to enhance content, functionality, accessibility and customer experience. Police Department Employee Recognition Improvements F: High Performing Government F.4.1 Dedicate resources toward continuous culture building through enhanced employee recognition, comprehensive
onboarding, and mentorship programs.

Human Resources
Change.org Engagement Coordination G: Equity, Access, Belonging G.2.1 Develop an inclusive, resident led community engagement program to bring all members of the community into the decisionmaking process for policies, programs, major projects and initiatives.

City Manager
DEIB Roadmap G: Equity, Access, Belonging
G.3.1 Develop and implement a strategic roadmap to guide the City’s work to achieve equitable outcomes for all community members.

City Manager
Attachment 4

Expand DEIB Training G: Equity, Access, Belonging
G.3.4 Expand employee, appointed, and elected officials training related to policies that ensure equitable outcomes for the community.

City Manager
Digital Equity Planning G: Equity, Access, Belonging
G.3.6 Address the digital divide by pursuing broadband equity projects, improving neighborhood Wi-Fi, and coordinating with the County of Marin Digital Marin program
Digital Service

Attachment 4
Work Plan Projects Rolling Over from FY2025-26
Project Name Council Priority Area Related Objectives Department Analyze Revenue Streams A: Economic Development &
Neighborhood Vitality
A.1.2 Explore the creation of new revenue streams to fund economic growth and vitality through partnerships to identify mutually beneficial investments.

Community and
Economic
Development
Targeted Marketing Initiatives A: Economic Development & Neighborhood Vitality
A.1.3 Drive local economic activity through promotion of destination tourism, enhancing special events, and optimizing city-owned assets by leveraging targeted marketing initiatives.

Community and
Economic
Development
Tourism Funding Model Assessment A: Economic Development & Neighborhood Vitality
A.1.5 Assess the existing tourism funding model to determine if alternative models would enhance tourism sector growth for San Rafael.

Community and
Economic
Development
City Wayfinding A: Economic Development &
Neighborhood Vitality
A.2.1 Create and implement a gateway beautification program with enhanced signage, landscaping, and public art that reflects the City’s identity and vibrancy.

City Manager
Central San Rafael Gateway Pilot A: Economic Development & Neighborhood Vitality
A.2.1 Create and implement a gateway beautification program with enhanced signage, landscaping, and public art that reflects the City’s identity and vibrancy.

City Manager
Urban Land Institute A: Economic Development &
Neighborhood Vitality
A.2.1 Create and implement a gateway beautification program with enhanced signage, landscaping, and public art that reflects the City’s identity and vibrancy.

City Manager
Public Spaces Program A: Economic Development &
Neighborhood Vitality
A.2.2 Develop and implement a program for enhancing and maintaining high visibility public spaces that signals thoughtful investment and care for the places people see and use every day.

Public Works
Illegal Dumping Program - 2025-2028 A: Economic Development & Neighborhood Vitality
A.2.3 Continue implementation of a comprehensive, citywide illegal dumping program. Sustainability
Northgate Specific Plan A: Economic Development &
Neighborhood Vitality
A.3.4 Develop the North San Rafael Priority Development Area Plan.

Community and
Economic
Development
Attachment 4

ESR Specific Plan A: Economic Development &
Neighborhood Vitality
A.3.5 Develop an East San Rafael Specific Plan using the City’s inclusive resident engagement philosophy; collaborate with the community and Canal Alliance to ensure alignment with their community vision plan (Nuestro Canal, Nuestro Futuro).

Community and
Economic
Development
Citywide Zoning Ordinance A: Economic Development &
Neighborhood Vitality A.4.1 Update the City’s Objective Design Standards.

Community and
Economic
Development
Objective Design Standards Update A: Economic Development & Neighborhood Vitality A.4.1 Update the City’s Objective Design Standards.

Community and
Economic
Development
Citywide Bicycle & Pedestrian Plan Update B: Mobility & Infrastructure B.1.1 Develop and adopt an updated Citywide Bicycle and Pedestrian Plan. Public Works
Canal ATP Bridge feasibility study B: Mobility & Infrastructure B.1.2 Conduct East San Rafael Canal Crossing feasibility study and pursue partnerships and funding sources for possible construction of a swing bridge.

Public Works
Parking Permit Program Revision B: Mobility & Infrastructure B.1.3 Revise the City’s current residential parking permit program. City Manager FY25-26 Pavement Management Program B: Mobility & Infrastructure B.1.4 Execute a comprehensive pavement management program to maintain road quality at a “Fair” Pavement Condition Index (PCI) rating across the City’s roadway network.

Public Works
620 Canal Phase 1 - 2025/2026 B: Mobility & Infrastructure B.1.5 Pursue Development of 620 Canal. Library and Recreation Traffic Safety Improvements including
(Vision Zero Action Plan) B: Mobility & Infrastructure B.2.1 Develop and adopt a Vision Zero Action Plan, in alignment with the City adopted Local Road Safety Plan. Public Works Launch/Evaluate Traffic Calming Pilot B: Mobility & Infrastructure B.2.2 Launch and evaluate pilot projects for traffic calming measures to improve neighborhood safety. Public Works
Implement New Traffic Safety Laws B: Mobility & Infrastructure B.2.3 Implement projects as required due to recent legislation; AB413 (day lighting) and AB43 (speed limits). Public Works Attachment 4

Traffic Signal Upgrade B: Mobility & Infrastructure
B.2.4 Modernize and upgrade traffic signal systems to enhance capabilities for managing traffic flow based on the 2040 General Plan.

Public Works
Citywide Building & Facilities Plan (CBFP) B: Mobility & Infrastructure B.3.1 Develop a Citywide Buildings and Facilities Plan to assess, identify and track the condition of City assets, deferred maintenance, and unmet facility and infrastructure needs.

Public Works
Citywide Storm Drain Plan B: Mobility & Infrastructure
B.4.1 Develop a comprehensive Citywide Storm Drain Plan to assess, identify and track storm drain system condition, deferred maintenance, and needed system improvements. The plan will also clarify the City's standards for storm drain infrastructure, develop maintenance schedules, and evaluate sea level rise impacts to the system.

Public Works
Implement Electric Vehicle Acceleration
Strategy C: Sustainability & Resilience
C.1.2 Work with transportation partners to implement the Electric Vehicle Acceleration Strategy and reduce community vehicle miles traveled.

Sustainability
Implement Short-Lived Climate Pollutant
Law SB 1383 C: Sustainability & Resilience
C.1.3 Expand community composting, revise purchasing policies, and collaborate with Zero Waste Marin and Marin Sanitary Service to continue the implementation of SB 1383, the Short-Lived Climate Pollutant Law.

Sustainability
Reduce Community Building Energy Use C: Sustainability & Resilience C.1.4 Reduce community building energy use through incentive programs, community education, and engagement tools as
outlined in the County Building Electrification Roadmap.

Sustainability
Wildfire Action Plan Implementation C: Sustainability & Resilience C.2.2 Continue implementing the Wildfire Action Plan and evaluate the need for revisions including focusing on zone zero (0- 5 feet from homes and structures).

Fire Department
Resiliency in Building Codes C: Sustainability & Resilience C.2.3 Implement existing policy and program commitments in the General Plan 2040, and implement building code policies to support community resiliency, specifically to address the potential hazards listed in Goal C.2.

Sustainability
Climate Partnerships C: Sustainability & Resilience
C.2.5 Explore governance models and a formal collaborative public-private-philanthropic partnership as a foundation for climate adaptation work.

Sustainability
Improve Citywide Readiness and Resilience C: Sustainability & Resilience C.3.1 Improve citywide readiness and resilience for disasters and evacuations through outreach and training. Fire Department Attachment 4

Coordinate and Support
CERT/NRG/Firewise C: Sustainability & Resilience
C.3.2 Coordinate and support Community Emergency Response Teams (CERT), Neighborhood Resources Groups (NRG), Firewise, and similar grassroot groups with training, drills, and resources.

Fire Department
Increase AlertMarin Registrations C: Sustainability & Resilience C.3.3 Increase the number of San Rafael residents signed up for AlertMarin. Emergency Alerts and notifcations. Fire Department Develop/Train on Continuity of Government
Plan C: Sustainability & Resilience
C.4.1 Develop and implement a multi-year training and exercise plan for Disaster Service Workers and Emergency Operations Center staff in collaboration with other agencies in the County.

Fire Department
Staff Training on Emergency Operations
Plan C: Sustainability & Resilience C.4.2 Review, update and provide continued training for staff on the City’s Emergency Operations Plan. Fire Department
350 Merrydale Interim Shelter D: Housing & Homelessness D.1.1 In collaboration with the County of Marin, explore the implementation of a housing-focused interim shelter program, supported by robust case management services to assist in transitioning unhoused community members into permanent supportive housing, or other permanent housing solutions.

City Manager
Update Municipal Code to Support
Development D: Housing & Homelessness
D.2.1 Analyze state housing laws and relevant case laws to streamline policies, remove barriers, and support the
development of new housing in alignment with legal requirements and community needs.

City Manager
Evaluate Tenant Protections Policies D: Housing & Homelessness D.3.1 Evaluate the effectiveness of existing tenant protection policies and consider revisions as needed.

Community and
Economic
Development
Explore Housing Policies D: Housing & Homelessness
D.3.2 Explore policies that protect renters and low-income earners from rising housing costs and economic instability and prevent displacement and preserve housing while ensuring fair returns and sustainability for property owners.

Community and
Economic
Development
Implement Enhanced Wildfire Risk
Mitigation E: Quality of Life E.1.3 Implement an enhanced fire code compliance program, emphasizing education before enforcement. Fire Department PAAC Community Involvement Strategies E: Quality of Life E.1.4 Identify and implement strategies to foster more community involvement to increase trust between law enforcement and the community.

Police Department
Reduce Priority Emergency Response Times E: Quality of Life E.2.1 Reduce emergency response times of Priority 1 police calls. Police Department Identify Funding for SAFE Program E: Quality of Life E.2.2 Identify funding to ensure sustainability and expansion of the Specialized Assistance for Everyone (SAFE) program. Police Department Attachment 4

CPTED - Crime Prevention Through
Environmental Design E: Quality of Life
E.2.3 Integrate safety and crime prevention through
environmental design (CPTED) elements in all infrastructure development and improvement plans/projects.

Police Department
Conduct Driving Education and
Enforcement E: Quality of Life
E.2.4 Reduce dangerous driving behavior and the number of collisions resulting in injury through education and enforcement efforts.

Police Department
Drone as First Responder E: Quality of Life E.2.5 Assess and utilize technology solutions to improve public safety systems and response times. Police Department
Measure P Progressive Design Build E: Quality of Life
E.3.1 Establish a project team, including specialists in building and landscape architecture, design, engineering, environmental, community engagement, project management, construction
management, and regulatory compliance, to ensure the City has the capacity and expertise to successfully complete the Albert Park Library and Community Center project.

Library and Recreation
Conduct Community Engagement - Albert
Park Library & Community Center E: Quality of Life
E.3.2 Based on robust community engagement, develop a
preferred site plan for the Albert Park Library and Community Center that includes the proposed building location, surrounding site layout, recommended programmatic elements, and a
preliminary cost estimate.

Library and Recreation
Pickleweed Branch Renovation E: Quality of Life E.4.1 Complete the Pickleweed Library and Pickleweed Preschool renovation. Library and Recreation
Pickleweed Preschool Portable
Replacement E: Quality of Life E.4.1 Complete the Pickleweed Library and Pickleweed Preschool renovation. Library and Recreation
Citywide Work Planning F: High Performing Government
F.1.1 Create annual work plans for each City Council Priority Area to track progress and revise as necessary when reprioritization is needed.

City Manager
Performance Management F: High Performing Government
F.1.2 Enhance the performance management system that
supports tracking progress towards City Council’s Goals and Objectives.

Digital Service
ERP Phase II - HRM/Payroll F: High Performing Government F.2.1 Evaluate, identify, and implement technology solutions, including artificial intelligence, which streamline and improve internal and external processes (i.e., enterprise resource planning, virtual permitting systems, records and information management, website).

Finance
Attachment 4

Governance, Risk, Compliance F: High Performing Government F.2.1 Evaluate, identify, and implement technology solutions, including artificial intelligence, which streamline and improve internal and external processes (i.e., enterprise resource planning, virtual permitting systems, records and information management, website).

Digital Service
Citywide Communication San Rafael F: High Performing Government F.2.2 Create and implement a citywide strategic communications plan that improves public messaging, combats misinformation, enhances two-way engagement, and establishes consistent communication practices both within the organization and with the community.

City Manager
Universal Design Website Project: Council
Milestones F: High Performing Government F.2.3 Update the City’s website to enhance content, functionality, accessibility and customer experience. Digital Service
Records Management Program Policy F: High Performing Government F.2.4 Update and implement city-wide records retention schedules and Public Records Act related policies and systems. City Clerk Records Retention Schedules F: High Performing Government F.2.4 Update and implement city-wide records retention schedules and Public Records Act related policies and systems. City Clerk Regional Partnerships for Efficiency F: High Performing Government F.2.5 Support and explore regional partnerships and
intergovernmental collaborations to seek efficiencies in service delivery.

City Manager
Tax Measure Strategies F: High Performing Government F.3.1 Develop a timeline and take steps to renew existing tax measures requiring voter approval. Finance
Strengthen Sales Tax Base F: High Performing Government F.3.2 Explore strategies and initiatives aimed at increasing overall sales tax revenues by attracting new sales tax generating entities, diversifying the City’s current sales tax base and capturing sales tax “leakage” in targeted sectors.

Community and
Economic
Development
Identify & Secure New Revenue F: High Performing Government F.3.3 Identify and secure new revenue sources to address the insufficient funding available to address services needs for growing population and to address deferred maintenance of the city's infrastructure, ensuring long-term sustainability, safety, reduction of flood risk, and reliability of public assets, including storm water system, park and facility enhancement plans, etc.

Finance
Public Safety Impact Fees F: High Performing Government F.3.4 Continue to evaluate and update the master fee schedule, development impact fees, and other fees as necessary to ensure full cost recovery and address increased demand for public services and facilities.

Finance
Attachment 4

Update Master Fee Schedule and
Development Impact Fees F: High Performing Government
F.3.4 Continue to evaluate and update the master fee schedule, development impact fees, and other fees as necessary to ensure full cost recovery and address increased demand for public services and facilities.

Finance
Policies: Remote Work F: High Performing Government F.4.4 Promote holistic employee wellbeing through work-life balance initiatives and supportive workplace policies. Human Resources Evaluate/Revise ADA Program G: Equity, Access, Belonging G.1.1 Evaluate and revise the Americans with Disabilities Act program and policies as necessary.

Community and
Economic
Development
Language Access Plan G: Equity, Access, Belonging G.2.3 Develop and implement the City’s Language Resource Access Plan to improve multilingual engagement practices. City Manager Integrate Equity data into CIP process G: Equity, Access, Belonging G.3.2 Develop and implement a policy that ensure equitable distribution of public resources and infrastructure improvements across all areas of San Rafael.

Public Works
Develop Equity and Climate Justice Lens G: Equity, Access, Belonging G.3.5 Develop guidance and train staff in methods for
incorporating equity and climate justice lens into the development of programs, policies, and projects to ensure no unintended harm occurs and to ensure historical injustices are reversed, and not repeated.

Sustainability
Link to Attachment 5
Updated Three-Year
Capital Improvement
Program (FY 2026-27
through FY 2028-29)
https://storage.googleapis.c
om/proudcity/sanrafaelca/2
026/06/d4211388-5.0-cipreport_final.pdf