At their June 24 meeting, the Novato City Council unanimously approved a $57.7 million City Budget for Fiscal Year (FY) 2025/26, effective July 1. For the first time in more than five years, the City has adopted a balanced budget — shaped by extensive community input and supported by voter-approved Measure M, which will generate approximately $10 million annually in new, locally controlled revenue.
Guided by community feedback gathered through surveys, workshops, meetings and popup events, the budget focuses on priorities such as road repair, public safety, emergency response, park maintenance and local business support. Measure M funding allows the City to better align these community priorities with available resources.
“This budget marks the start of Novato’s journey toward long-term financial health – it’s an important first step, not the finish line,” said City Manager Amy Cunningham. “It represents meaningful progress in strengthening our community by restoring essential services and staffing, investing in critical infrastructure, and building the framework for greater future resilience. It’s also important to note that labor negotiations are still in progress. While the adopted budget is balanced, it does not yet account for the full cost of operations expected next year.”
Key investments in the FY 2025/26 Budget include:
- Maintaining Services & Addressing Staffing Needs:
$4 million in Measure M funding to support existing service levels, including police, parks and street maintenance. And added funding for six new full-time positions, including two maintenance workers, to begin addressing long-standing staffing shortages critical to meeting service needs and community expectations.
- Strengthening Financial Reserves:
Rebuilding emergency reserves to improve resilience against economic downturns, natural disasters or other unforeseen events.
- Deferred Maintenance & Infrastructure:
An additional $1.8 million allocated to the Annual Street Pavement Program and $500,000 in Measure M funding to add two new maintenance positions and support core maintenance, including weed abatement and road repairs.
- Long-Term Financial Planning:
An investment of $1 million to address long-term pension liabilities and ensure future fiscal sustainability.
- Innovation & Economic Support:
To improve operational efficiencies and service delivery, the investment of $150,000 to begin saving for a modern financial system. Support for local businesses and economic growth with $100,000 set aside for a Tenant Improvement Grant Program.
Capital Improvement Program (CIP)
As part of the City’s five-year CIP, projects are reviewed and funded annually through the City’s budget process. For FY 2025/26, $6.5 million is allocated for new projects and $2.6 million for ongoing projects.
Planned CIP projects for the upcoming fiscal year include street paving and traffic safety enhancements, upgrades to community facilities, and projects identified in the Parks Master Plan — including improvements to the Hamilton Amphitheater Park playground.
The Fiscal Year 2025/26 Budget went into effect July 1, 2025. The final adopted budget document is anticipated to be completed in August. The Draft Budget for FY 2025/26 is available at novato.org/budget.
