Novato FY 26-27 Community Budget Workshop - March 25, 2026
Novato FY 26-27 Community Budget Workshop - March 25, 2026
The City of Novato held a Community Budget Workshop on March 25, 2026, led by City Manager Amy Cunningham and Finance Director Carla Carballo de Graff, to present the fiscal year 2026-27 budget process, the five-year general fund forecast, and the capital improvement program. The workshop included presentations on revenue sources, Measure M impacts, and ongoing and new capital projects. A question-and-answer session followed.
Public Comments & Testimony
- An audience member asked whether park project allocations were for studies or actual improvements. Public Works Director Chris Benini clarified that Hamilton Community Pool and Teen Center Turf would be studies, while Marin Highlands Park, Marion Park, and Miwok Fencing were for project completion.
- A question was raised about city-owned vacant properties and potential sale of surplus properties. Assistant City Manager Bill Rose responded that two properties have been earmarked for surplus and the city is evaluating highest and best use. Finance Director Carballo de Graff noted that revenue from property sales would be one-time and not budgeted until the sale occurs.
- A question asked how the city monitors and reports on the SAFE program's return on investment. Bill Rose referenced a recent city council presentation showing statistics on call offset and geographic distribution, and offered to share details separately.
- Another question inquired about revenue and expense forecasts. Carla Carballo de Graff stated that the general fund forecast incorporates incremental revenue increases, with sales tax flat statewide and property tax increasing modestly.
- A question about potential funding declines from third-party sources, particularly schools, was answered by clarifying that school funding is handled by the school district; for grants, the city is conservative in forecasting.
Discussion Items
City Manager Amy Cunningham opened with remarks emphasizing transparency and community engagement, thanking attendees and noting that Measure M (passed November 2024) has strengthened the city's financial foundation. Finance Director Carla Carballo de Graff outlined the budget development timeline (February to June), communication tools (over 13,000 news subscribers, over 21,000 newsletter subscribers, social media following over 13,000), and the budget priorities survey results showing top three priorities: public safety, streets/medians maintenance, and business retention/attraction. She explained revenue sources (property tax, sales tax, other taxes) and presented the five-year general fund forecast with and without Measure M. Without Measure M, deficits would grow to over $9 million; with Measure M, budgets are balanced. The Measure M forecast shows available amounts for capital projects ranging from about $2.1 million to $1.6 million over the period. Principal Analyst Jennifer Maldonado presented the operating budget: adopted at $57.7 million in revenue and expense for FY 2025-26, the first balanced budget in many years. Property tax and sales tax make up 64% of revenue. Personnel costs are 68% of expenses. Public Works Director Chris Benini presented the capital improvement program, describing restricted funding sources (TAM Measure AA, gas tax, etc.) and highlighting a double allocation in FY 26-27 from TAM due to a reimbursement model change. He reviewed ongoing projects: Novato Boulevard Improvements (utility relocation phase, construction starting summer 2026), Hamilton Amphitheater Park Playground ($700,000, ADA improvements), Olive Avenue widening (construction starting June 2026), Scott House renovations (donation of $3.2 million from Novato Historical Guild), Police Station HVAC replacement, and annual pavement rehabilitation (Redwood Boulevard from Roland to San Marin Drive with bike lanes). New projects for FY 26-27 include: transportation (annual pavement rehab, Novato Boulevard widening, Olive Avenue widening, San Marin corridor study, wooden streetlight pole replacement, storm drain pipe replacement, traffic/bike/pedestrian improvements, and a new pedestrian safety project near parks and schools); parks (Hamilton pool play structure study, Teen Center Turf study, Marin Highlands Park playground replacement, Marion Park field renovation, Miwok Park fencing phase two); and municipal buildings (Scott House renovations, DRC/gymnastics center air handler replacement, rooftop solar module inspection). Chris Benini also noted grant funding: $10.3 million for Novato Boulevard widening from the now-defunct major streets program, and Safe Pathways to School projects for sidewalk gap closures and intersection improvements.
Key Outcomes
- No formal votes were taken at this workshop. The workshop was informational and intended to gather community input.
- Upcoming public meetings: Finance Advisory Commission on April 2, 2026; City Council study sessions on Operating Budget (April 14) and Capital Improvement Program (April 28).
- The recording and presentation will be posted on the city's website.
Meeting Transcript
I'm Amy Cunningham, Novato City Manager, and I want to sincerely thank you for being here tonight for the fiscal year 26-27 Community Budget Workshop. Whether you're here in the room or joining us online, where it probably looks very awkward at this point, your engagement does matter. Because this process, our budget isn't just about numbers. It's about people, it's about priorities, and it's about the kind of community we want to build together. Every year, this is our opportunity to step back and ask what matters most, where should we invest, and how do we continue to make Navado a place where we're all proud to call home? That's why your voice is so important, and the decisions made through this process shape our services, our neighborhoods and businesses, and our future. Your input helps ensure those decisions reflect the values of this community. Transparency isn't just a goal for us, it's a commitment. Tonight's workshop, along with our surveys and pop-up events through the community are all about creating space for conversation, for questions, and for real engagement. We want to hear from you. Whether you're here in this room or you're watching online or you're out at one of our events. In November of 2024, our community came together to pass Measure M, the three quarter cent sales tax that's that stays here locally. That vote was more than a funding decision. It was a statement about what we value and what we're willing to invest in. Because of that support, we've been able to strengthen our financial foundation, restore critical services, and make meaningful investments in public safety, roads, and parks. And while we're proud of that progress, what's even more important is where we go next. We know that there's still plenty of work to do, and there are still opportunities to improve, to invest, and to build a stronger and more resilient Novato. And we can only do that together. So tonight isn't just about a budget, it's about a shared vision for our future. So thank you for being here for being engaged and for being part of what makes this community so strong. And at this point, I'll turn it over to our finance director, Carla Carballo de Graff, and she'll lead the budget workshop. All right, thank you, Amy. As City Manager Cunningham said, Paul in not as few words as these, public involvement is critical. And I also want to thank those here and those of you watching. We appreciate your time and are happy that you are interested in the city's budget. This too many things. This uh this slide is our agenda. Tonight we'll walk through the city's budget process and highlight the many ways you can participate. By the end of this workshop, you will have a clearer picture of our current general fund forecast, the operating budget, and the projects included in the capital improvement program. So we'll start with budget development. The budget development process begins in February with an initial survey asking how you'd like us to engage with you throughout the budget process. We also conduct a budget priorities survey and host a community budget workshop like the one we're holding tonight. In addition, we're continuing our budget pop-ups, which we launched last year to meet people where they are and make participation easier. In April, we move into formal budget development. This year we've split the study session into two parts, one focused on the operating budget and one focused on the capital improvement program. We return in May with updates at the budget workshop so the community and council can see how the budget is taking shape and receive direction from council on the budget. In June, we hold the official budget hearing, and the city council then adopts the budget before the fiscal year ends on June 30th. Finance works closely with public works to develop the capital improvement program, and that budget follows the same overall timeline. Various commissions review the budget throughout the process with the Finance Advisory Commission involved at every stage. And importantly, the community is welcome to participate in any of these meetings. This is our budget priorities survey, which closed on March 23rd. It's one of the key ways for you to tell us what matters most to you. The survey gives community members a chance to share priorities and offer comments on anything happening in the city related to budget. In our initial review of the community survey results, three priorities rose to the top public safety, streets and medians maintenance, and business retention and attraction. These are the same three that were the top three in the prior year. And these areas obviously reflect the issues community members told us matter most to them. We use a wide range of communication tools so residents can stay informed and whatever way works best for them. Email outreach is one of our strongest channels with more than 13,000 news release subscribers and over 21,000 newsletter subscribers. Social media helps us share updates quickly across Facebook, Instagram, and X and LinkedIn, reaching more than 13,000 followers. And we use community-based platforms like Nextdoor and Novado in the know.
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