In San Rafael, longtime public official Cristine Alilovich has stepped down as city manager. She and the city reached a mutual separation agreement, which comes with a hefty severance package and a sudden shift in leadership.
Finance Director Paul Navazio now steps in as interim city manager. This move happens while debates over homelessness, shelter plans, and fast housing growth keep testing Marin County’s largest city and its ability to plan and fund services.
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The details of Alilovich’s departure, Navazio’s temporary role, and a looming budget shortfall are already sending ripples through nearby towns. Folks from Mill Valley to Sausalito and Novato are watching closely.
San Rafael’s City Manager Transition: What This Means
Alilovich’s exit really marks a turning point for San Rafael. The city negotiated her departure and agreed to a substantial payout.
Navazio, who was already handling city finances, takes over as interim city manager for now. The council voted unanimously to keep him in that role while leadership gets sorted out.
Meanwhile, the city faces tough, ongoing challenges. Homelessness, shelter plans, and the pressure of housing growth continue to strain planning and services across Marin County.
Across Marin—from San Anselmo and Larkspur to Tiburon and Corte Madera—San Rafael’s leadership shakeup could influence budget talks and staffing decisions. Other cities are feeling similar pressures.
Even at the county level, planning and public safety resources are stretched thin. The ripple effect is hard to ignore.
Financial Terms of the Separation
Alilovich’s separation package includes a lump sum of $380,949.85, which covers her base pay and health insurance for 12 months. She’ll also get $69,917.40 for wages and accrued leave.
The agreement blocks further public comment beyond a joint press release. It also prevents Alilovich from pursuing any legal claims related to her job or exit.
- Lump-sum severance: $380,949.85
- Additional wages: $69,917.40 for accrued leave and wages
- Public-comment restrictions: No further public commentary beyond the joint statement
- Legal release: Waiver of claims tied to employment or exit
Alilovich started as assistant city manager in 2015 and moved up to city manager in 2023. Her base salary for the top job was $283,992, and she finished at $333,744.
Navazio joined San Rafael in July 2023. He brings more than 30 years in public finance and management, earning $232,692 now. He’s held city manager and finance director roles elsewhere, so he’s not new to this kind of pressure.
Interim Leadership and Budget Realities
The city manager oversees a budget of about $211 million each year and more than 400 full-time equivalent positions. Navazio’s interim leadership continues as San Rafael faces real financial pressures, including a projected shortfall.
He recently warned about a possible $3.5 million budget gap next year. That could grow to roughly $6 million by 2030. The city’s already put a hiring freeze in place and is considering tax renewals and new revenue measures.
Nearby towns—Mill Valley, Sausalito, Novato—are watching to see how San Rafael handles these fiscal challenges. Will they have to make similar moves? Only time will tell.
Local Context: Homelessness, Growth, and Planning in Marin
San Rafael faces challenges that mirror broader issues across Marin County. Homelessness, heated debates over shelter plans, rapid housing growth, and limited planning authority all play a role.
Officials in Sausalito and Corte Madera keep a close eye on what San Rafael does, searching for clues on how to balance more housing with the desire to protect neighborhood character. Over in Larkspur, Tiburon, and Mill Valley, planning teams feel stretched thin as the population rises and people expect more services.
The leadership shakeup in San Rafael sits right in the middle of all this, showing just how much one city’s choices can ripple through Marin’s tight-knit towns.
- Regional collaboration among Marin cities feels more important than ever
- Budget planning and possible staff changes are on the table
- Interim leaders will have to decide how shelter and housing projects move forward
- County-level revenue measures might get a closer look to help fund homelessness and housing efforts
Everyone’s waiting for more clarity, and San Rafael’s council will probably lay out next steps for city finances, services, and long-term planning soon. The situation with Alilovich and Navazio really highlights how Marin’s towns—from Fairfax to Sausalito—try to juggle governance, budgets, and community needs in a time of pretty intense growth and tight resources.
Here is the source article for this story: San Rafael announces city manager’s resignation, payout
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