$62.5M Budget Approved To Fund Roads, Parks, Public Safety In Novato

NOVATO, CA — The Novato City Council has approved a $62.5 million general fund budget for the 2026-27 fiscal year, directing funding toward road repairs, parks, public safety and other community priorities.

The budget, adopted June 23, takes effect Wednesday and marks the second consecutive balanced budget since voters approved Measure M, the city's three-quarter-cent sales tax. City officials project the measure will generate about $10 million annually to help maintain services, address rising costs and fund infrastructure improvements.

The budget follows weeks of public review. Earlier this month, city staff told the council the spending plan would keep the general fund balanced despite rising health insurance and pension costs, while continuing investments in roads, parks and long-term financial stability.

Staff also proposed using Measure M revenue to support operations, strengthen pension reserves and fund capital projects.

"This budget allows us to keep improving roads, parks and facilities, support important community programs and strengthen the City's financial position so we can continue delivering results for our community in the years ahead," said Mayor Rachel Farac.

The adopted budget continues funding for the city's SAFE program, which connects people experiencing mental health crises, substance use disorders and homelessness with services. It also includes additional funding for street repairs, park maintenance, small business storefront grants and a facilities assessment for city-owned buildings.

The city also approved $21.5 million in capital improvement projects, including reconstruction of Novato Boulevard following PG&E undergrounding work, Olive Avenue railroad crossing improvements, annual street paving, traffic safety upgrades near schools and parks, city building improvements, and accessibility and playground upgrades at Marin Highlands Park and Marion Park.

Officials said the city will continue partnering with regional agencies to improve public safety, including participating in the Marin County Sheriff's Office Auto Theft Task Force through a grant-funded position and working with the Novato Fire Protection District on fire safety initiatives.

Despite approving a balanced budget, city officials said Novato continues to face rising costs tied to inflation, utilities, insurance and pension obligations.

"We're investing in programs and services that matter most to our community," City Manager Amy Cunningham said. "This budget reflects a balanced approach to address today's priorities while preparing for tomorrow's challenges."