Novato City Council Adopts Balanced Budget Supported by Measure M

On June 23, 2026, the Novato City Council adopted a $62.5 million general fund budget for Fiscal Year 2026/27 guided by community feedback gathered through surveys, workshops, meetings and popup events. The budget funds priorities that improve public safety, maintain infrastructure and enhance quality of life throughout Novato. The budget takes effect July 1 and marks the second consecutive year the City has adopted a balanced budget since passage of Measure M.

Measure M is projected to generate $10 million and will provide funding needed to maintain service levels, address rising costs and make targeted investments that benefit community members.

"Measure M continues to make a difference in our community," said Mayor Rachel Farac. "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."

The adopted budget includes funding for community priorities, including:

• SAFE Program - Continued funding for specialized response services that connect community members experiencing mental health challenges, substance abuse issues and homelessness with appropriate support and resources.
• Parks and Street Maintenance - Additional investment in roadway repairs, weed abatement and maintenance of parks and public spaces.
• Small Business Support - Continued funding for grants that help local businesses make visible improvements to their storefronts.
• Facilities Assessment - Funding to identify maintenance needs and develop a long-term improvement plan for City-owned properties.

The budget also includes $21.5 million for capital improvement projects, including:

• Novato Boulevard Improvements - Following completion of PG&E undergrounding work, construction will begin on the new 3-lane roadway with sidewalks, bike lanes and improvements to crosswalks, traffic signals, street lighting, drainage and landscaping.
• Olive Avenue - Railroad crossing and roadway improvements with enhanced pedestrian safety.
• Annual Street Paving - Ongoing pavement rehabilitation project that helps maintain and extend the lifespan of our roads.
• Traffic Safety - Roadway and pedestrian safety improvements near schools, parks, senior center and other community facilities, helping protect vulnerable residents while addressing long-standing infrastructure needs with Measure M funding.
• Building Improvements - Upgrades to City facilities that support reliable City services.
• Parks and Recreation Projects - Playground upgrades and accessibility improvements to enhance our community spaces, including Marin Highlands Park and Marion Park.

The budget is further strengthened through partnerships with neighboring agencies and state-funded grant programs that help expand services and improve public safety without increasing costs to Novato taxpayers. These include a partnership with the Novato Fire Protection District to improve fire safety in the community and grants that fund DUI preventions and traffic safety enforcement.

The City is also leveraging outside funding to advance key community projects, including a grant through the Transportation Authority of Marin to close sidewalk gaps along Redwood Boulevard. A grant funded position was added to support the regional Auto Theft Task Force led by the Marin County Sheriff's Office, helping strengthen law enforcement efforts through regional collaboration.

While Novato's financial outlook remains stable, the City continues to address rising costs associated with inflation, utilities, insurance and pension obligations. The budget funds efforts to strengthen reserves, reduce long-term liabilities and improve operational efficiency.

"We're investing in programs and services that matter most to our community," said City Manager Amy Cunningham. "This budget reflects a balanced approach to address today's priorities while preparing for tomorrow's challenges. Our community was clear when they voted to pass Measure M and support improvements to Novato's quality of life. We're continuing to strengthen the City's financial foundation while ensuring Novato remains resilient for the future."

More information: novato.gov/budget