At last night’s meeting, the Novato City Council approved key budget adjustments aimed at reinforcing the City’s long-term financial stability and addressing community priorities. Staff’s presentation included an update on projected revenues from Measure M, a ¾ cent local sales tax increase approved by Novato voters in November 2024.

The new sales and use tax rate of 9.25% will go into effect on April 1 and is expected bring our community an additional $10 million annually in locally controlled revenue. For the current fiscal year, the City anticipates receiving approximately $2.6 million in Measure M funding. As part of the Fiscal Year 2024/25 Mid-Year Budget Report, Council authorized the following allocations from Measure M funds:

• Replenish the Emergency and Disaster Recovery Reserves - $1,240,000 transferred to the Emergency & Disaster Reserve Fund to help offset the projected FY 2024/25 budget deficit while ensuring continued compliance with the City’s policy to maintain a reserve balance of at least 15% of operating expenses.
• Increase the Self Insurance Reserve - $1,200,000 transferred to the Self Insurance Reserve to strengthen financial protections.
• Fund critical community-identified needs - $200,000 allocated to Public Works for deferred maintenance projects through June 30, 2025, including roadway and pothole repairs, parks and facilities maintenance, and wildfire mitigation efforts such as weed abatement.

These strategic investments reflect the City’s commitment to financial sustainability while improving essential infrastructure and services for our community. 

To learn more about the City’s budget, visit novato.org/budget.