Novato City Council Meeting - April 8, 2025: Budget Study Session and Operational Updates
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Novato City Council Meeting - April 8, 2025
The Novato City Council convened on Tuesday, April 8, 2025, at 6:00 PM for a regular meeting that included proclamations, public comments, a work study session on the Fiscal Year 2025/26 operating budget and capital improvement program, and approval of the consent calendar. The meeting was led by Mayor Tim O'Connor and attended by Councilmembers Pat Eklund, Kevin Jacobs, Mark Milberg, and Mayor Pro Tempore Rachel Farac.
Consent Calendar
- The Council unanimously approved the consent calendar (Items G.1-G.7) with the exception of Item G.5, which was pulled for separate discussion. Items included approval of minutes, policy manual updates, a letter opposing Senate Bill 79 (Wiener), the Finance Advisory Commission's workplan, the third-quarter payment register, and an update to the Housing and Homeless Committee's responsibilities.
- Councilmember Eklund commented on Item G.3 (motions to reconsider), clarifying that only two councilmembers may discuss a reconsideration to avoid a Brown Act violation. City Attorney Bell confirmed the procedure.
Public Comments & Testimony
- Mary Jo Walker (San Rafael resident, former city finance director) urged the Council to pass a resolution or write letters urging CalPERS and CalSTRS to divest from Tesla stock, citing CEO Elon Musk's disdain for public employees. She noted CalPERS owns 4.8 million shares and CalSTRS 4.5 million.
- Morgan Chan (student, Good Shepherd) described a dangerous intersection near his elementary school at 495 Ignacio Boulevard, reporting 500 cars and only 20 pedestrians per hour during rush hour. He requested flashing lights or flags to improve pedestrian visibility. Councilmembers committed to following up via police traffic division.
- Archie Held (Novato sculptor) announced a $100,000 Marin Community Foundation grant for public art in Novato and sought Council advice on locations, suggesting the defunct water feature at Redwood and Grant. Staff directed him to Katie Gauntlet for next steps.
- Rachel Hundley and team (Leadership Novato class of 2025) promoted the Alchemy Art Showcase (April 8-25), featuring works by artists with developmental disabilities at 25 locations, with a celebration on April 26 at City Hall.
Discussion Items
- Proposed Agenda Item: Economic Development and Grant Funding Initiatives – Mayor Pro Tempore Farac introduced a proposal to strengthen fiscal sustainability through new economic development and grant funding initiatives, aiming to support local businesses and prioritize projects that leverage matching funds. The Council unanimously voted to place the item on a future agenda.
- Fiscal Year 2025/26 Operating Budget and Capital Improvement Program (CIP) Study Session – Finance Director Carla Carvalho-DeGraff, Principal Analyst Jennifer Maldonado, and Interim Public Works Director Tim Burke presented:
- Community budget survey results (March 10-31, 2025) ranked public safety and street maintenance as top priorities for the fifth consecutive year; business retention and homelessness/mental health also ranked in the top five.
- General fund forecast: Measure M (2024 voter-approved sales tax) is projected at $10.6 million annually. Of that, approximately $3.8–4 million will backfill a systemic deficit, leaving $6.6 million for other needs. The 2025/26 budget shows a $6.6 million surplus (with Measure M) but a recurring structural deficit of $3.8–4 million.
- Revenue assumptions: 2.4% property tax increase (from Marin County), flat sales tax pending consultant update, 2% hotel tax increase, $212,000 in new rent from 501 Davidson lease, and increased Parks and Rec class fees.
- Expense assumptions: 6% water, 6% garbage, 2.9% sewer increases; 3% PG&E increase; $741,000 increase in CalPERS unfunded accrued liability (potential $2,000 savings if prepaid in July).
- Proposed one-time allocations: $50,000 for Parks and Rec cost recovery study, $100,000 for records digitization, $67,000 for code update training, $10,000 for cannabis storefront retail study (questioned by Councilmember Eklund), and unspecified amounts for Munis ERP post-implementation.
- Equipment maintenance internal service fund has a $2.1 million deficit; staff recommends a payback schedule. Equipment replacement fund needs $1 million annual allocation (up from $700,000) and a revised loan payment plan for 501 Davidson.
- CIP highlights: $1.88 million from Measure M proposed for pavement rehabilitation; $640,000 for long-term maintenance; new projects include $50,000 for Mary Todd Senior Center siding assessment, $700,000 for Hamilton Amphitheater playground, and one large trash capture device at Olive and Redwood. The De Long–Diablo corridor safety project is completed; Novato Boulevard widening (Grant to Diablo) expects PG&E undergrounding to start May 2025.
- Councilmember Eklund requested Measure M spending be broken out by ballot categories (potholes, 911 response, wildfire risk, parks); suggested increasing wildfire abatement funding and reevaluating the cannabis study. Councilmember Jacobs questioned CalPERS UAL stability. Councilmember Farac supported reinstating the downtown business property improvement grant at $100,000 and advocated for a Vision Zero initiative. Councilmember Milberg raised the need for small business startup support and maintaining community outreach through pop-up events.
Key Outcomes
- Unanimous approval (5-0) of the consent calendar (Items G.1-G.4, G.6-G.7).
- Unanimous approval (5-0) to place Mayor Pro Tempore Farac's proposed economic development and grant funding agenda item on a future meeting.
- Work session on the FY 2025/26 budget and CIP: Council provided feedback for staff to bring a refined budget to the May workshop, including specific breakout of Measure M spending, reconsideration of the cannabis study, potential increase to Parks and Rec financial assistance (from $10,000 to $25,000), and further analysis on internal service funds.
- Item G.5 – Finance Advisory Commission Workplan: The Council unanimously approved the workplan after removing three items (overlap with EDAC, cannabis study, and MVMCC), with the understanding that staff will return with updates on those items as they become available.
Meeting Transcript
Good evening, everybody. Welcome to the City of Nevada City Council meeting for Tuesday, April 8th. Please stand for the Pledge of Allegiance. And to the Republic for which it stands one nation. Thank you. Laura, if you'd call roll. Councilmember Eckland. Present. Councilmember Jacobs. Present. Councilmember Herbert. Present. Present and Chairman. Present. Thank you. The council did meet in closed session before the meeting tip this evening. I'll turn to a city attorney Bell. Yeah, thank you, Mayor and Council members. No reportable action from close session. Thank you. We have two proclamations this evening. I'd like to invite the city council to join me at the front of the room. Thank you, thank you. All right. Our first proclamation is recognizing National Public Safety Telecommunicators Week, and I'd like to invite the members of the Nevada Police Department to join us for the award. Good to see you guys. Come on up. Friend center. Okay. We get to do this each year, and this group has to be the least the most reluctant in terms of standing up and receiving praise, then they will they they really really deserve it. So recognizing National Public Safety Telecommunicators Week, whereas the professional public safety dispatcher plays a vital role in the protection of human life and property and the preservation of law and order guaranteed by our Constitution, and whereas the incidents of crime, alcohol, and drug abuse, suicides, medical and fire emergencies, traffic collisions, and domestic abuse are a daily occurrence, and whereas the safety of our police officers and the public is dependent upon the quality and accuracy of information obtained from community members who contact the police department, and whereas the professional public safety dispatcher is the vital link between the community member or victim and the public safety provider who may apprehend a criminal, save their worldly possessions, or save their life for the life of a loved one. And whereas the City of Novato is incredibly fortunate to have a wonderful group of dedicated and trained professional public safety dispatchers, and whereas these professionals need and deserve the informed support of our community to continually maintain and improve the quality of public safety dispatching services. And whereas the United States Congress has set aside the second full week in April to recognize telecommunicators and their crucial role in the protection of life and property. Now therefore, be resolved that the City Council of the City of Novato, on behalf of the residents of Nevada, do hereby proclaim the week of April 13th through the 19th, 2025 as National Public Safety Telecommunicators Week and commends the dedication and contribution of our professional public safety dispatchers to the overall delivery of public safety services. Thank you so much for everything you do. I tried to get her to say something too, and I don't think it's gonna happen. No, I just want to say thank you for recognizing uh our dispatchers. I mean, we're so fortunate to have such an incredible group. You know, I always say dispatchers are the unsung heroes in this this whole profession because these are the ones that are getting the phone calls all day, all night, you know, the people in their worst moment and just the calm and the professionalism and the caring they bring to the job. I think people can feel it through the phone, and it helps Sam. It sets up us up for success, they keep an eye on us when we wander off doing things in uh so we're just so grateful to have such great dispatchers. Thank you, guys. Our second proclamation recognizes the Nevada Police Department, and I'd like to invite up members of the Nevada Police Department and Jody Burks, Dean Burks, Brian Burks, and Aggie Freeman to accept the proclamation. Oh sure. So where is the Novata? I thought you guys were here. Whereas the Nevada Police Department is dedicated to ensuring the safety and security of our community through vigilance, professionalism, and swift action in the face of danger. And whereas on February 15th, 2025, officers of the Nevada Police Department demonstrated outstanding investigative skills, teamwork, and unwavering commitment to justice in the successful apprehension of kidnapping suspects. And whereas the department's rapid response, coordination with Allied law enforcement agencies, and steadfast determination led to the safe recovery of the victim and the prevention of further harm. And whereas the this incident exemplifies the bravery, dedication, and integrity of the men and women of the Nevada Police Department, who work tirelessly to protect and serve the residents of Novado.
openpublica.com