HomeMy WebLinkAboutFinance Committee 2025-08-06 Agenda PacketSAN RAFAEL CITY COUNCIL
FINANCE SUBCOMMITTEE MEETING
Wednesday, August 6, 2025 | 1:30 PM – 3:00 PM
THIRD FLOOR CONFERENCE ROOM
SAN RAFAEL CITY HALL
1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA
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AGENDA
1. Call to Order
2. Open Time for Public Expression
The public is welcome to address the Subcommittee at this time on matters not on
the agenda that are within its jurisdiction. Please be advised that pursuant to
Government Code Section 54954.2, the subcommittee is not permitted to discuss
or take action on any matter not on the agenda unless it determines that an
emergency exists, or that there is a need to take immediate action which arose
following posting of the agenda. Comments may be no longer than two minutes
and should be respectful to the community.
3. Approval of Minutes
Approval of Minutes of the Regular Finance Subcommittee meeting of May 13, 2025
Recommended Action – Approve minutes as submitted
4. Park Impact Fee Program Update (Community and Economic Development, Library
& Recreation)
The Subcommittee will receive a presentation on the study commissioned to update
the City’s Park and Recreation Facilities Fee and Park Dedication and In-Lieu Fee
Programs. The presentation will include a review of the current fee structure,
methodology, and preliminary draft fee schedule recommendations. This item is
scheduled for the City Council meeting of September 2, 2025.
5. Preliminary FY2024/25 Unaudited Financial Results (Finance)
The Subcommittee will receive a preview of unaudited budget-to-actual revenue and
expenditure results for the fiscal year ended June 30, 2025. Update will focus on
General Fund revenue and expenditure results relative to projections used in
development of the FY2025/26 budget, as well as selected year-end budget
adjustments requiring City Council approval. Staff will also preview preliminary
recommendations for carry-forward of unencumbered FY2024/25 budget
appropriations to FY2025/26. This item is tentatively scheduled for the City Council
meeting of September 2, 2025.
6. Financial Enterprise Resource Planning (ERP) Conversion Project Update (Finance)
Staff will provide the Subcommittee with an update on the project that successfully
migrated the City’s enterprise-wide financial system to the new Tyler/ERP platform,
concurrent with the start of the new fiscal year on July 1, 2025.
7. Future Agenda Planning
Agenda planning for the upcoming meetings of the Finance Sub-Committee.
8. Adjournment
Any records relating to an agenda item, received by a majority or more of the Council less than 72
hours before the meeting, shall be available for inspection in the City Clerk’s Office, Room 209, 1400
Fifth Avenue, and placed with other agenda-related materials on the table in front of the Council
Chamber prior to the meeting. Sign Language interpreters and assistive listening devices may be
requested by calling (415) 485-3066 (voice), emailing Lindsay.lara@cityofsanrafael.org or using the
California Telecommunications Relay Service by dialing “711”, at least 72 hours in advance of the
meeting. Copies of documents are available in accessible formats upon request. Public transportation
is available through Golden Gate Transit, Line 22 or 23. Paratransit is available by calling
Whistlestop. Wheels at (415) 454-0964. To allow individuals with environmental illness or multiple
chemical sensitivity to attend the meeting/hearing, individuals are requested to refrain from
wearing scented products.
SAN RAFAEL CITY COUNCIL
FINANCE SUBCOMMITTEE MEETING
Tuesday, May 13, 2025 | 1:00 PM – 2:00 PM
THIRD FLOOR CONFERENCE ROOM
SAN RAFAEL CITY HALL
1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA
MEETING MINUTES
1. Call to Order
Time called to order: 1:10pm
Present: Mayor Kate Collins, Councilmember Eli Hill
Staff Present: Paul Navazio (staff liaison), Cristine Alilovich, April Miller, Joanna Kwok,
Bernadette Sullivan, Catherine Quffa, Greg Minor, Sullina Smith, Ariel Guttierez
2. Open Time for Public Expression
The public is welcome to address the Subcommittee at this time on matters not on
the agenda that are within its jurisdiction. Comments may be no longer than two
minutes and should be respectful to the community.
• None.
3. Preview FY2025/26 Proposed Budget (Finance)
The Subcommittee received a preview of the FY2025/26 Proposed Budget. This
included a preview of a) FY2024/25 Q3 Budget Update b) City Manager’s FY2025/26
Funding Recommendations, and c) Draft FY2025/26 Capital Improvement Plan
Budget.
• FY2024/25 Q3 Budget Update –
o Councilmember Hill noted that year-to-date revenues were reported
at 60% of budget and asked if these were expected to be at 75%
through the first 3 Quarters. Staff responded that revenues would not
necessarily be tracking at 75% through 9 months given the timing of
receipt of major revenues such as Property Taxes, Sales Tax and Grant
revenues related to Capital Projects.
o Sales Tax projections have been down-graded for FY2024/25 and
FY2025/26 based on recent trends; Mayor Kate noted that this is
consistent with what she is seeing with other regional agencies that
areheavily reliant on voter-approved sales tax revenues.
o Overall year-end projections for the General Fund result in revenues
anticipated to be roughly $500,000 over the amended budget and
expenditures are projected at roughly $1,000,000 under the amended
budget; staff noted that personnel expenditures are tracking on
budget and the favorable budget variance is attributable entirely to
non-personnel spending. This represents a significant deviation from
recent history where personnel expenditures have contributed
significantly to year-end expenditures falling well below budget.
• FY2025/26 Proposed Budget
o Staff provided the subcommittee with draft summary tables showing
Proposed Budget by Fund, Department and Category. Major themes
for the FY2025/26 Proposed Budget were a) balanced budget, b) very
limited budget flexibility to support new ongoing/recurring budget
augmentations, c) majority of budget flexibility to address priority
needs is within one-time funding, d) limited amount of new, recurring
funding recommendations are proposed to avoid exacerbating out-
year budget shortfalls, e)FY2025/26 Proposed Budget has been
developed to align with City Council Goals and Objectives
o Councilmember Hill inquired about selected budget line items that
reflect significant variances (+/- 20%) between FY2024/25 and
FY2025/26; this was due to three factors: 1) one-time funding
allocations in either fiscal year, 2)re-prioritization of baseline funding
to address emerging needs, and 3) some restructuring of budget
allocations between departments (such as workers’ compensation,
liability and claims and debt service moving from departmental
budgets to the non-departmental category.
• FY2025/26 Capital Budget
o Staff provided the subcommittee with a presentation on the draft
Capital Improvement Plan budget, to include a review of criteria used
to prioritize projects (capital needs and availability of grant funding);
baseline capital program funding (streets, stormwater, facilities, etc.);
and new capital project funding recommendations. The overall draft
Fy2025/26 CIP budget proposes around $15 million in new funding.
This is significantly reduced from the prior year’s CIP budget of $33
million and reflects that fact that several projects funded in FY2024/25
will be carried over for completion in FY2025/26. Among the goals of
the FY2025/26 capital budget and related 3-year CIP Plan Update is to
“right-size the capital budget to better align with staff and funding
capacity to advance projects.
o Mayor Kate expressed her support for proposed funding to initiate a
Gateway Beautification project
o Mayor Kate inquired as to level of concern related to potential loss of
Federal grant funding committed to capital infrastructure projects, as
this is a growing concern. Staff identified the South Merrydale Road
project as a possible concern since formal contracts with the
Department of Transportation have not yet been finalized. Staff noted
that most recent communication on federal grant criteria have
included new elements that need to be considered for funding
eligibility, consistent with emerging Federal policy.
o Councilmember Hill commented on the $3 million proposed for
annual street maintenance work and inquired as to whether this level
of funding is the amount required to maintain street/road conditions
at current (acceptable) levels. Director Miller noted that per most
recent Pavement Condition Index (PCI) Report (updated every 3 years)
the City would need to allocate between $4.5 - $5.0 million to
maintain current PCI levels across the City.
4. FY2025/26 Master Fee Schedule Update (Finance)
Staff provided the Subcommittee with preliminary recommendations expected to
be included in the FY2025/26 Master Fee Schedule update.
• While the majority of fees were proposed for adjustment consistent with
Council-approved annual increases per specified consumer price index (CPI),
the presentation focused on fees where increases in excess of the CPI were
recommended as well as new fees being introduced through the FY2025/26
Master Fee Schedule.
• Mayor Kate asked for confirmation of whether the FY2025/26 Proposed
Budget already included projected revenues based on recommended fee
updates; noting that this would be important to highlight in the presentation
to the City Council.
5. Measure E – Essential Facilities Update
• The subcommittee discussed next steps to update Measure E – Essential Facilities
Plan to inform projects to be funded through remaining Measure E funding capacity.
o The subcommittee generally supported the process whereby the Finance
Sub-committee would serve in an advisory role to review draft Measure E
Spending Plan;
o Mayor Kate noted that while deferred maintenance needs (for essential
facilities) are critically important, she noted that – as a voter-approved tax
measure – Measure E funding criteria might consider higher weight being
given to projects with more public visibility.
o Councilmember Hill inquired as to the remaining funding capacity of
Measure E to support capital projects through its current sunset date (2023);
staff shared that the estimate of capacity is in the range of $8.5 - $10 million,
depending on general sales tax trends. Staff also noted that most of annual
revenues generated by Measure E that have been earmarked for Essential
Facilities is already committed to paying of bonds issued for the construction
of the Public Safety Center.
6. Status Update Related to Updating the City’s Development Impact Fees (Community and
Economic Development, Library and Recreation, Public Works)
• Staff provided the Subcommittee with an update on work currently underway to
update the City’s Parks Impact Fee, Park In-Lieu Fee, and Quimby Fee. This topic is
tentatively scheduled to come before the City Council in early September.
• The City has a Park In-Lieu Fee in place, with the fee being paid by developers of
subdivision projects where providing park acreage is a condition of approval.
Developers can opt to pay the Park In-Lieu Fee rather than provide the required park
acreage as part of the project. This fee structure is being reviewed as part of the
study to primarily quantify what is meant by “fair market value” of land acreage.
• The City does not currently have a Park Impact Fee, typically assessed on all
development projects to cover each project’s proportionate share of the cost of
providing parks infrastructure needs stemming from the cumulative impact of
development across the City.
• Staff noted that the study currently underway is intended to provide the City Council
with the basis for the maximum fees that could be charged, consistent with the
statutory framework for development fees, and that the City Council can ultimately
determine the rates to be set. Staff recommendation will consider factors such as
the results of the study, comparable fees in other jurisdictions as well as cumulative
impact of fees on prospective development.
• The discussion amongst subcommittee members focused on both the level of fees
contemplated in relation to Park infrastructure needs, the timing at which fees are
“locked in” for a given project, and the timing for when applicable fees are paid.
o Staff noted that recent legislation (SB330) provides that fees are locked in at
time of pre-application, and that fees are typically paid at time of
application, issuance of building permits, or at issuance of certificate of
occupancy.
• Staff concluded this item by noting that the work underway related to Park Impact
Fees is a first step in developing a comprehensive impact fee program (to include
Road Impact Fees, Public Safety Impact Fees, etc.)
o The subcommittee acknowledged the need to prioritize this work in light of
the significant uptick in development activity across the City, and the
importance of ensuring that a free program be in place to support
infrastructure demands triggered by new development.
7. Future Agenda Planning
• The next regular meeting of the Finance Sub-Committee is scheduled for July
1st. This meeting is planned to be rescheduled (TBD) due to the summer
recess schedule.
8. Adjournment
• The meeting was adjourned at 2:23pm