$62.6M Budget With Focus On Roads, Parks And Pensions Reviewed By Novato City Council

NOVATO, CA — The Novato City Council reviewed a $62.6 million general fund plan that maintained services, funded major road and park projects and continued to rely heavily on Measure M sales tax revenue at the June public hearing on its proposed 2026-27 budget.

Finance staff said the general fund was balanced for the second consecutive year, despite rising costs for employee health insurance and pension obligations. In 2025, the city announced it had a balanced budget for the first time in five years.

Principal Analyst Jennifer Maldonado told the council that general fund expenditures were projected to increase about 4.3 percent, driven primarily by personnel costs.

Measure M, the city's voter-approved police, parks and potholes sales tax, was projected to generate about $10 million.

Staff said the draft allocation included roughly $8.03 million to support ongoing operations, $370,000 for the city's pension reserve, $150,000 toward eventual replacement of the city's finance and HR software, $100,000 for additional streets and park maintenance, and about $1.25 million for capital projects.

Councilmember Tim O'Connor said the plan balanced immediate needs with long-term obligations.

He highlighted the use of Measure M to both "support ongoing operating costs and maintain core city services" and to address long-term liabilities through the pension reserve and technology investments.

The proposed capital improvement program totaled $25.9 million across 10 new and ongoing projects.

Key items included $15.5 million to rebuild Novato Boulevard, $2.1 million for Olive Avenue work, $3.1 million for the Scott House renovation and $2.4 million for the annual pavement program.

The budget also added funding for Miwok Park fence work, cultural monitoring and public art, including utility box murals.

The same agenda included items related to the city's annual pavement rehabilitation program and Olive Avenue railroad crossing improvements.

Councilmember Pat Eklund focused on the portion of the budget dealing with the city-owned Marin Valley Mobile Country Club, where a 3 percent rent increase was proposed.

She requested historical revenue and expense data for the last two fiscal years before final approval and said she wanted to understand prior commitments the city made regarding wildfire maintenance costs on surrounding open space.

"[This plan] maintains core services, continues our investment in critical infrastructure and supports long-term fiscal stability," said City Manager Amy Cunningham.

The council will vote on whether to adopt the budget on Tuesday.