Novato’s 2026–2027 budget is taking shape with a clear message: Measure M remains the pivotal factor keeping city finances in the black, even as Marin County’s familiar cost pressures rise.
This Marin County–focused budget preview shows how Novato plans to balance operations, fund public safety, and support local businesses while keeping an eye on infrastructure needs that ripple through nearby towns like San Rafael, Sausalito, Mill Valley, and Corte Madera.
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Overview of Novato’s 2026–2027 Budget Outlook
Novato’s finance team expects a balanced operating budget for the 2026–2027 fiscal year, mostly because Measure M’s steady revenue—about $10 million a year—keeps things afloat. This sales tax, enacted back in 2024, has become a game changer for Novato.
Across Marin County, towns from San Anselmo to Larkspur are watching how Measure M shapes budget stability and public services in communities like Fairfax, Ross, and Tiburon.
Finance Director Carla Carvalho-Degraff points out that traditional taxes and service charges are growing, but not by much. Meanwhile, the city faces rising costs for utilities, employees, contracts, and pension contributions.
Without Measure M, Novato officials say the city would be staring down a structural deficit of over $9 million by 2029–2030. That’s a pretty stark shift in the city’s fiscal outlook—and it’s hard to overstate how much the measure has changed things for Marin’s North Bay towns.
Key Funding Decisions and Priorities
The Novato City Council unanimously told staff to allocate $461,000 annually to support the police department’s crisis response team, SAFE. This move matches the public safety and economic priorities seen all over Marin.
City leaders also want staff to keep the local business improvement grant matching program going, and even expand it to cover initial tenant improvements. That’s a step some merchants in San Rafael and Sausalito would probably applaud—it could spark more startup activity and boost downtown energy.
- SAFE crisis response funding to bolster patrols and rapid response in critical incidents
- Business improvement grants maintained at existing levels to spur private investment
- Expansion to cover initial tenant improvements to help new and expanding businesses
These priorities show how Novato’s budget choices are echoing broader Marin County concerns. People want safe neighborhoods and thriving Main Streets, and they don’t want small businesses getting left behind in a region famous for lively downtowns like Mill Valley, San Anselmo, and Sausalito.
One-Time Costs and Building Needs
Staff pointed out several one-time expenses that will show up in the 2026–2027 plan. There’s $150,000 set aside for a full facilities assessment, $75,066 for election-related costs, and $64,000 to replace a fire alarm panel.
When Councilmember Pat Eklund asked about repairs to older and historic buildings—a challenge lots of Marin towns face—the City Manager said a new assessment is overdue. Needs have changed since the last review in 2013, and even with Measure M, resources are still tight.
The conversation about historic properties and maintenance sits alongside other priority projects in Novato’s CIP priorities table. That topic resonates with neighboring towns like San Rafael and Tiburon, where historic districts and aging buildings keep demanding attention—and, honestly, ongoing investment in Marin County.
Budget Timeline and Regional Context
The City of Novato will keep talking about the budget in May. There’s a capital improvement program study session lined up for April 28.
The 2025–2026 budget came in at $57.7 million for both revenue and expenses. Local leaders keep an eye on this number and compare it to how Measure M is doing, plus whatever’s happening in the regional economy.
Across Marin—places like Corte Madera, Fairfax, Ross, and San Anselmo—people are still asking: how do we keep growing, fund the things we need, and hold onto that Marin County quality of life that draws in families and small businesses?
San Rafael, Sausalito, and other Marin towns are watching what Novato does next. Measure M definitely shook things up, but old challenges like public safety, solid infrastructure, and a healthy business scene aren’t going anywhere soon.
Here is the source article for this story: Novato foresees balanced budget for another year
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