The URL can be used to link to this page

Home My WebLink AboutVATOC 2025-12-11 Agenda Packet1 VOTER-APPROVED TAX OVERSIGHT COMMITTEE December 11, 2025 AT 5:00PM REGULAR MEETING COMMUNITY DEVELOPMENT LARGE CONFERENCE ROOM CITY HALL 3RD FLOOR 1400 FIFTH AVENUE SAN RAFAEL, CALIFORNIA Watch Online: Watch on Zoom Webinar: https://cityofsanrafael-org.zoom.us/j/88608545442 Listen by phone: (669) 444-9171 ID: 886 0854 5442 One Tap Mobile: +16694449171,, 88608545442# US AGENDA CALL TO ORDER – 5:00pm • Roll Call MINUTES 1. Approve regular meeting minutes from the meeting of October 27, 2025. MEETING OPEN TO THE PUBLIC 2. Introductions / Awards / Recognitions / Presentations 3. Public Comment from the audience regarding items not listed on the agenda. MATTERS BEFORE THE COMMITTEE If necessary to assure completion of the following items, the Chairperson may establish time limits for the presentations by individual speakers. 4. Presentation of Audited Financials from FY 2024-25 a. Measure D – Library Parcel Tax b. Measure G – Cannabis Industry Tax c. Measure E – Transaction and Use Tax d. Measure R – Transaction and Use Tax e. Measure P – Main Library and Community Center Parcel Tax (FY2025-26 only) 5. Presentation and Approval of Annual Report STAFF COMMENTS 6. Schedule of upcoming meeting(s) ADJOURNMENT 2 Notice Any records relating to an agenda item, received by a majority or more of the Committee less than 72 hours before the meeting, shall be available for inspection in online. 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. 1 VOTER-APPROVED TAX OVERSIGHT COMMITTEE OCTOBER 27, 2025 AT 5:00PM REGULAR MEETING COMMUNITY DEVELOPMENT LARGE CONFERENCE ROOM CITY HALL 3RD FLOOR 1400 FIFTH AVENUE SAN RAFAEL, CALIFORNIA WATCH ONLINE: https://www.cityofsanrafael.org/meetings/voter-approved-tax-oversight- committee-october-27-2025/#/tab-video MEETING MINUTES CALL TO ORDER – 5:04pm • Roll Call Members Present: Chuck Freide (Chair), Tracy Broadman, Jon Haveman, Caleb McWaters, Stephen Roth Staff Present: Paul Navazio, Shawn Plate, Alexis Bailey MINUTES 1. Approve regular meeting minutes from meeting of December 17, 2024. It was moved (Roth) and seconded (McWaters) to approve the minutes from the meeting of December 17, 2024. The motion to approve the minutes was passed by the following vote: Ayes: Friede, McWaters, Roth Noes: None Abstain: Broadman, Haveman MEETING OPEN TO THE PUBLIC 2. Introductions / Awards / Recognitions / Presentations Introduction: Jon Haveman (New Committee member), Alexis Bailey (Sr. Management Analyst, Finance Department) 3. Public Comment from the audience regarding items not listed on the agenda. None MATTERS BEFORE THE COMMITTEE 2 4. City Council Sub-Committee Feedback on Voter-Approved Tax Oversight Committee Annual Report for FY2023-24 • Staff acknowledged the committee’s discussion in Annual Report sent to Council and conveyed questions, comments, etc. in the staff report accompanying the Annual Report. The staff report was reviewed by the Finance Sub Committee prior to the Council and provided their feedback. • Item No. 1: How should the citizens oversight committee review and provide feedback on general purpose tax measures (Measure E and R)? The Finance Sub-Committee suggested that the Voter-Approved Tax Oversight Committee (and staff) could recommend proposed language revisions to the Committee Bylaws to address this question. • Item No. 2: Should the Paramedic Tax - the one voter approved tax measure not under the purvey of the committee – be added to the list of tax measures to be reviewed by the committee? The Finance Sub-Committee recommends that the oversight role related to the Paramedic Tax should be considered at the time when the existing tax measure is brought back before the voters for renewal or extension, and that an oversight provision be included in the ordinance at that time. • Item No. 3: Measure P is the new Library parcel tax approved by the voters on the November 2024 ballot, to include an oversight provision. Will the existing Voter- Approved Tax Oversight Committee be responsible for oversight of Measure P? The Finance Sub-Committee’s expectation is that the existing Voter-Approved Tax Oversight Committee serve as the oversight body for Measure P. • Committee report went to Council as a consent item and no additional discussion was had; the Council feedback is implied as approval of consent item. • Chair Freide inquired if the Paramedic Tax has an expiration date. It does not; was approved in 2010 and can be increased as deemed necessary by Council. The ordinance set a maximum cap which the City hit in 2023 or 2024. Paramedic tax funds roughly 27% of Firefighter/Paramedic personnel cost as well as non-personnel costs associated with responding to emergency medical services calls. The current “cap” on the tax rate results in the tax measure covering decreasing percentage of costs over time. The Paramedic Tax generated $5.4 million in FY24-25 budget. • Chair Freide asked how difficult it would be to segregate fire activity versus paramedic activity? Staff said fairly easy especially with the implementation of a new financial system, 3 and the establishment of an EMS division within the Fire Department. However, all fire suppression staff are firefighter/paramedics which means the City would need to track costs by type of calls. Chair Freide inquired due to looking forward if the Paramedic Tax was renewed and fell under their purvey how they would review the expense side of the tax. • Committee Member McWalters asked is there is a mechanism to ensure all measures going forward that money can be tracked and not in the General Fund and how do we ensure this doesn’t continue happening? Essentially the language of the measure on the ballot would need to explicitly state the intended use of the tax. • Committee Member Haveman followed up with an additional question; if the purpose of the tax is supposed to be additive. Staff said this is where you a measure would typically include “non- supplanting language.” • Committee Member McWalters asked if it is possible to add to the charter the ability to review and comment on ballot measures, in order to make recommendations on the language used in the measure before it goes on the ballot. Staff said the charter doesn’t explicitly prohibit the committee from making such recommendations. 5. Presentation of Unaudited Financials from FY25-26 Budget No questions related to the budget information provided to the committee. 6. Review of Unaudited Financials for FY2024-25 and Budget for FY2025-26 • Staff presented a report which included the unaudited revenue and expenditure results for the fiscal year ending June 30, 2025. • Committee Member Broadman asked when Measure D is sunsetting; which ends in the current fiscal year and will require the Council to place it back on the ballot. • A question was also raised regarding Meas D expenses paid to • Chair Freide asked is there is a target for how much should be in the reserve for the General Fund; there is a policy by the City Council and it is now 15%. It is suggested by GFOA that you should have three months of operating expenses which is about 17%. The City of San Rafael has a 10% emergency reserve, the additional 5% is for economic uncertainty. • Additionally, it was noted that the City Clerk and City Council budgets are up over 30% year to year and the Finance budget is down. This is due to the reshuffling of budgets where they should reside with the new chart of accounts implemented with the new ERP system. • Is it overly simplistic to state the City spends $4.1 million on parking enforcement and only raised $4.8 million. Director Navazio; Yes overly simplistic – revenues also account for the City- owned parking lots and parking garages. Parking is the single enterprise fund at the City. • Chair Freide had additional questions regarding Measure P; is it a per square foot parcel tax? 4 This is correct and there is a duration provision that says it will remain in effect for 3o years or following the last bond payment on the debt - whichever is longer. • Committee Member McWaters inquired about the delta for the budget for equipment line item on Measure D. Director Navazio noted this is due to the carryforward of prior year funds. Additionally, he inquired about expenses paid to vendor Baker & Taylor. Staff responded that this appears to be one of the City’s book suppliers but would need to confirm. Chair Freide advised that Baker & Taylor, one of the oldest book dealers in the country recently announced that they would be ceasing operations. • Committee Member McWaters as about Measure G expenses paid to Joint Venture Silicon Valley. Director Navazio believes they provide parcel maps and data regarding zoning to the City; he will follow up with the Committee after further research. STAFF COMMENTS 7. Schedule of upcoming meetings and events of interest • Need to schedule next meeting of the Committee in December; Staff will send a Doodle poll ADJOURNMENT The meeting was adjourned at 6:10pm. Notice Any records relating to an agenda item, received by a majority or more of the Committee less than 72 hours before the meeting, shall be available for inspection in online. 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. Agenda Item No: 4.0 Meeting Date: December 11, 2025 SAN RAFAEL VOTER-APPROVED TAX OVERSIGHT COMMITTEE STAFF REPORT Department: Finance Prepared by: Paul Navazio Finance Director TOPIC: VOTER-APPROVED TAX OVERSIGHT COMMITTEE (VATOC) MEETING STAFF REPORT SUBJECT: PRESENTATION OF AUDITED FINANCIALS FROM FY 2024-25 AND BUDGET FOR FY 2025-26 BACKGROUND The Voter-Approved Tax Oversight Committee was formed in September 2022 to consolidate oversight of the City’s voter-approved tax measures into one five-member committee. The committee provides independent oversight of all San Rafael voter-approved tax measures, Measures D, E, G, and R, to ensure the funds have been expended in accordance with the authorized purposes, and prepares and submits to the City Council an annual report on the audited expenditures and revenues from each tax measure from the previous fiscal year. For the upcoming FY2025-26 fiscal year, the newly-approved Measure P parcel tax will be included as part of the Committee’s review. At their meeting of October 27, 2025, the Voter-Approved Tax Oversight Committee reviewed the unaudited financial results for the fiscal year ended June 30, 2025 for all tax measures under the committee’s oversight purview. This agenda item served to provide final, audited financial results for each of these tax measures. Note: there have been no changes or revisions to the financial results between the unaudited results reported on October 27th and the audited results presented in this report. A separate agenda item has been prepared for the December 11th meeting related to the approval of the Committee’s Annual Report to the City Council, as required by the Committee’s charter. ANALYSIS Measure D: Library Parcel Tax In 2016, San Rafael voters renewed an annual parcel tax to fund opening hours and services for the San Rafael Public Library. As a special-purpose tax, the revenues from Measure D can only be spent for library services in San Rafael to maintain hours of operation and provide services, equipment, programs and materials at the San Rafael Public Library. Measure D is scheduled to expire in 2026. The audited financial statements for FY 2024-25 show Measure D revenues of $1,225,316, expenditures of $1,283,185 and an ending fund balance of $794,877. The accumulation of fund balance is a result of two primary factors over the life of the tax: vacant staff positions funded by the Parcel Tax, and the growth of small amounts being underspent in various line items over the life of the tax. VOTER-APPROVED TAX OVERSIGHT COMMITTEE STAFF REPORT / Page: 2 The audited capital set-aside fund balance was $100,338. This capital set-aside was earmarked for new and improved library facilities as directed by the City Council as part of the previous Measure C, and was capped at $500,000. For FY25-26, Council has allocated $48,070 of the Measure C-Capital Set Aside fund balance to support the Downtown Library renovation and $51,930 to support the Pickleweed Branch renovation. Reports summarizing financial activity for Measure D – Library Parcel Tax can be found in Attachment 4(a), to include Summary Financial Results. For FY 2025-26, staff have budgeted for $1,259,143 in revenues and $1,863,121 in expenditures. The FY2025-26 budget would result in year-end fund balance of $191,650. In addition to ongoing operations and programs, staff plan to implement additional service and facility improvements. Follow-up from meeting of October 27th - Staff has confirmed that Baker & Taylor has been the Library’s primary vendor for collections (books and periodicals). As mentioned at the meeting, Baker & Taylor is ceasing operations (by end of 2025). Interestingly, Baker & Taylor was founded in 1828 and had grown to become one of the nation’s largest distributors of print and audiovisual materials for libraries, serving over 4,000 institutional customers. City staff is currently in the process of evaluating alternative vendors for its annual collections and publications acquisitions. Measure G: Cannabis Industry Tax In 2018, San Rafael voters approved Measure G, a business excise tax on cannabis businesses. Measure G allows for a tax on cannabis businesses operating in the City of up to 8% on gross receipts, and taxes different types of businesses at different rates. Current rates can be found on the City’s website. Measure G funds can be used for a variety of purposes, including police and fire services, street repair and improvements, and enhancing community centers. Measure G does not have an expiration date. During FY 2024-25, total revenues reported in the Measure G Fund (216) were $170,698, including $132,716 in tax revenues and $37,983 in interest earnings. Expenditures charged to Measure G for the fiscal year totaled $167,133. The decrease in Measure G revenues from FY 2023-24 to FY 2024-25 can be attributed to ongoing challenges in the cannabis market as well as the temporary decrease in the cannabis tax rate from 4% to 2% for delivery non-storefront license types, effective January 1, 2023. For FY 2025-26, staff have budgeted for $110,000 in Cannabis Industry Tax revenues and $145,373 in expenditures. On January 27, 2023, the San Rafael City Council committed the majority of the existing fund balance of $968,251 to support the pilot Specialized Assistance For Everyone (SAFE) Team, which began in late FY 2022-23. The program has been initially supported using funds from the City’s opioid settlement and grant funds, after which cannabis tax revenues are being utilized. Staff plan to return to Council at mid-year based on actual program needs and adjust transfers out to support the program’s operations. Reports summarizing financial activity for Measure G – Cannabis Industry Tax can be found in Attachment 4(b), to include Summary Financial Results. Follow-up from meeting of October 27th - In response to a committee member inquiry, staff has confirmed that the invoice paid to Joint Venture Silicon Valley is related to annual subscription service for the Co-Star Real Estate Services platform. The reference payment ($7,056.00) represents the City of San Rafael’s share of an arrangement whereby a consortium of cities (and counties) within the region access the data-rich real estate platform through Joint Ventures Silicon VOTER-APPROVED TAX OVERSIGHT COMMITTEE STAFF REPORT / Page: 3 Valley, thereby sharing data (and costs) across the region related to parcel data, real estate economics, and trends Measure E: Transactions and Use Tax (0.75%) San Rafael voters passed Measure E in 2013. Measure E is a three-quarter cent general purpose transaction and use tax. In 2014, the City Council directed that $0.25 (or one-third) of Measure E proceeds be earmarked to support essential facilities in San Rafael, including critical improvements to our public safety facilities. Construction of the Public Safety Center was completed in 2020, and a variety of other facility construction and improvements identified in Phase 1 of the Essential Facilities master plan were completed in FY 2023-24, including renovation of Fire Station 54. Measure E is scheduled to expire in 2034. During FY 2024-25, a total of $14,739,752 of Measure E revenues collected by the City. The majority of Measure E tax proceeds ($9,826,501) are considered discretionary general fund revenues. This funding makes up a significant portion of the City’s General Fund revenues supporting general government, public safety, community development and library/recreation programs and services. The City does not track expenditures specific to Measure E revenues collected within the General Fund. For FY 2024-25, $4,913,251 in tax proceeds (one-third) represents funding earmarked for essential facilities. A majority of the funds allocated for essential facilities are utilized to pay debt service for the Public Safety Center, totaling $4,398,250. Since debt service payments are presently budgeted within the General Fund, the remaining portion of Measure E funds earmarked for essentially facilities, net of debt service payments, are in turn transferred to the Measure E – Essential Facilities Fund (420). For FY 2024-25 a total of $353,500 was transferred to the Essential Facilities Fund. The FY 2024-25 budget included $883,450 in Capital Project appropriations within the Essential Facilities Fund. Capital expenditures recorded at year-end totaled $744,275 or $139,175 below budget. Capital expenditures included funding to complete renovations at Fire Stations 54 & 55 as well as re-purposing of space within City Hall. The balance of funds are anticipated to be carried-over to complete projects identified in the Phase 1 Essential Facilities Master Plan. For FY 2025-26, staff have budgeted for total Measure E revenues of $14,609,000 based on projections from HdL. A transfer of $290,417 net of debt service payments, is budgeted within the Essential Facilities Fund for FY 2025-26. The FY 2025-26 Capital Budget includes appropriations of $880,000 to support ongoing projects as well as a new project to upgrade the Public Safety Building antennae and communications network. Reports summarizing financial activity for Measure E can be found in Attachment 4(c). to include Summary Financial Results. Measure R: Transactions and Use Tax (0.25%) Measure R was passed in 2020 by San Rafael voters. Measure R is a one-quarter cent general purpose transactions and use tax, often referred to as a local sales tax. Funds from this measure go to the General Fund and support a variety of City operations, including public works, recreation and library, administrative services, and public safety. Measure R is scheduled to expire in 2030. FY 2024-25 was the fourth full fiscal year of Measure R tax receipts, during which $4,865,497 of revenues were received. For FY 2025-26, staff have budgeted for $4,870,000 in Measure R revenues based on projections from the City’s sales tax consultants, HdL. VOTER-APPROVED TAX OVERSIGHT COMMITTEE STAFF REPORT / Page: 4 Measure P: Main Library and Community Center Special Tax In November 2024, San Rafael voters passed Measure P, an initiative to fund a new main library and community center at Albert Park. Measure P represents a significant investment in our cultural and civic institutions and will be one of the largest capital projects that San Rafael has undertaken in recent years. The new library and community center will be a vibrant community resource for San Rafael, providing a hub for civic, cultural, and social enrichment and connection. For FY 2025-2026, staff have budgeted for $6,320,000 in Measure P revenues and $1,625,000 in expenditures based on projections from the City’s sales tax consultants, NBS. OPTIONS: The Committee has the following options to consider on this matter: 1. Accept this informational report 2. Accept this informational report and request additional information related to the revenues and expenditures presented in the report. ATTACHMENTS: 1. Voter-Approved Tax Oversight Committee Bylaws 2. Summary Financial Statements a. Measure D – Library Special Tax b. Measure G – Cannabis Industry Tax c. Measure E – Transaction and Use Tax (0.75%) d. Measure R – Transaction and Use Tax (0.25%) e. Measure P – Main Library and Community Center Special Tax Voter Approved Tax Oversight Committee Bylaws Page 1 of 2 VOTER APPROVED TAX OVERSIGHT COMMITTEE BYLAWS ARTICLE I. NAME AND PURPOSE Section 1.1. Name. The name of this body shall be the City of San Rafael Voter Approved Tax Oversight Committee, hereinafter referred to as the “Committee.” Section 1.2. Purpose. The Committee’s purpose is to review the collection and expenditure of voter approved tax revenues collected under the authority of voter-approved City tax measures and Resolution 15118 adopted by the San Rafael City Council on September 6 , 2022. Section 1.3. Committee Responsibility. The Committee’s authority is oversight only. The responsibilities and duties of the Committee shall be limited to: 1.2 Review expenditures of Measure tax revenues to ensure the monies have been expended in accordance with the authorized municipal purposes of each Measure. To complete this review, the Committee shall: 1.2.1 Understand allowable expenses of each existing Measure’s tax funds (as identified in the enacting Municipal Ordinance) 1.2.2 Review documentation from City Council and from City Council-appointed advisory committees that pertain to the prioritization of use of each Measure’s tax funds. 1.2.3 Review annual reports prepared by the City’s Finance Department that track the receipt and spending of each Measure’s tax funds. 1.2.4 Prepare and submit to the City Council and the community an annual public report on the expenditures of each Measure’s tax revenues for the previous fiscal year. 1.2.5 Fulfill the final responsibilities of each Measure’s responsibilities at the Measure’s termination, repeal or extension: Before submitting a final report: Review and report on the final expenditures of each Measure during the previous fiscal year, through its termination, to ensure that monies have been expended consistent with the authorized purposes of the Measure. The Committee shall not: 1. Have any budgetary decision authority, shall not allocate financial res ources, and shall not make budget or service recommendations to the City Council. 2. Have authority to direct, nor shall it direct, City staff or officials. Voter Approved Tax Oversight Committee Bylaws Page 2 of 2 ARTICLE II. MEMBERSHIP Section 2.1. Number of Members. The Voter Approved Tax Oversight Committee shall consist of five (5) voting members. Section 2.2. Eligibility. Members of the Committee shall be at last 18 years of age and reside within the City limits. Section 2.3. Appointment of Committee Members. Members shall be appointed by the City Council. Appointments shall be published on the website for the City of San Rafael in accordance with Government Code Section 54973, as amended from time to time . Section 2.4. Terms of Appointment. Each member shall serve a minimum term of four (4) years. An effort will be made to ensure that the terms are staggered, and not all of the appointments expire in the same year. Section 2.5. Term Limits. Members shall be limited to two (2) consecutive four -year terms. Additional terms may be served if there is a break between terms. Section 2.6. Absence and Removal. An unexcused absence from two (2) consecutive Committee meetings without notification to the Staff Liaison will constitute an immediate vacancy and shall be considered a voluntary resignation from the Committee. Previously dismissed Committee members may be eligible for reappointment. Section 2.7. Compensation. Members shall serve without compensation. ARTICLE III. MEETINGS Section 3.1. Time and date of Regular Meeting. Notification of meeting place, date, and time shall be rendered to the public through posting on the City of San Rafael website. Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Rachel Kertz, Councilmember • Maika Llorens Gulati, Councilmember Measure D City of San Rafael Voter-Approved Tax Oversight Committee (VATOC) Summary Financials Measure D - Library Special Tax Special Assessment Parcel Tax FY 2023-24 Audited FY 2024-25 Budget FY 2024-25 Audited FY 2025-26 Amended Budget* Revenues Interest Income 17,107 33,751 29,613 24,141 Special Assessment Tax 1,166,033 1,202,532 1,195,702 1,235,002 DIA Performance Reimb Grant - - - - Total Revenues 1,183,140 1,236,283 1,225,316 1,259,143 Expenditures Personnel 871,663 1,060,760 926,893 1,010,370 Training 3,854 5,000 5,000 5,000 Contractual Services 17,435 50,000 47,080 112,628 Advertising & Community Promotion - - - 4,900 County Admin Fee 30,058 28,000 31,298 28,000 Office Supplies 10,396 8,102 8,102 8,102 Equipment 7,253 490,000 104,140 491,153 Computer Equipment - 10,000 15,613 10,000 Technology Supplies 2,883 6,000 822 6,000 Books & Publication 107,899 110,619 88,261 140,619 Library-Periodicals 6,250 6,250 7,660 8,050 Library-Databases 106,650 95,000 48,316 37,548 Software Licensing - - - 752 Measure C-Capital Set Aside expenses - - - - Total Expenditures 1,164,340 1,869,731 1,283,185 1,863,121 Beginning Fund Balances: Measure D 833,946 852,746 852,746 794,877 Measure C-Reserve (for infrastructure)100,338 100,338 100,338 100,338 Ending Fund Balances: Measure D 852,746 219,298 794,877 191,650 Measure C-Reserve (for infrastructure)100,338 100,338 100,338 100,338 Total Ending Fund Balance 953,084 319,637 895,215 291,989 *Amended budget reflects encumbrances and/or budget approved after July 1st. Refer to the City of San Rafael FY24-25 Annual Comprehensive Financial Report Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Rachel Kertz, Councilmember • Maika Llorens Gulati, Councilmember Measure G City of San Rafael Voter-Approved Tax Oversight Committee (VATOC) Summary Financials Measure G Cannabis Tax Cannabis Business Operations Tax FY 2023-24 Audited FY 2024-25 Budget FY 2024-25 Audited FY 2025-26 Budget Revenues Interest Income 22,189 44,627 37,983 32,199 Cannabis Tax 215,231 225,000 132,716 110,000 Total Revenues 237,420 269,627 170,698 142,199 Expenditures Personnel 117,023 160,386 157,005 135,373 Non-Personnel 10,000 10,128 10,000 Total Expenditures 117,023 170,386 167,133 145,373 Transfers Out SAFE Team 233,945 700,000 151,129 550,000 Total Transfers Out 233,945 700,000 151,129 550,000 Beginning Fund Balance 1,150,737 1,037,189 1,037,189 889,625 Ending Fund Balance 1,037,189 436,430 889,625 336,452 Refer to the City of San Rafael FY24-25 Annual Financial Report Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Rachel Kertz, Councilmember • Maika Llorens Gulati, Councilmember Measure E City of San Rafael Voter-Approved Tax Oversight Committee (VATOC) Summary Financials Measure E General Tax Three-Quarter Cent Transactions and Use Tax One Quarter Cent Allocated to Essential Facilities FY 2023-24 Audited FY 2024-25 Budget FY 2024-25 Audited FY 2025-26 Budget Revenues Interest Income 68,832 126,995 106,402 Reimbursements 1,639 Total Revenues 70,471 - 126,995 106,402 Expenditures Measure E- Fire Station 54 Construction 308,964 - 341,953 Measure E- Fire Station 55 Construction 202,763 - 285,000 Repurposing of Former City Hall PD 15,842 - Public Safety-Post Construction 10,328 102,370 City Manager Office Renovation 42,185 3,600 Other - 883,450 11,352 880,000 Total Expenditures 580,082 883,450 744,275 880,000 Operating Deficit (509,612) (883,450) (617,280) (773,598) Transfers In Measure E Allocation 384,188 353,500 353,500 290,417 Total Transfers in 384,188 353,500 353,500 290,417 Beginning Fund Balance 3,718,016 3,592,592 3,592,592 3,328,812 Ending Fund Balance 3,592,592 3,062,642 3,328,812 2,845,631 Transfer in reconciliation Total Measure E Tax Received 14,739,752 Quarter-cent Portion 4,913,251 Debt Service - Principal (2,645,000) 001-10-11107-9611 Debt Service - Interest (1,841,500) 001-10-11107-9621 Net Transfer 426,751 Note: Transfer of additonal $73,250.62 performed in FY26 Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Rachel Kertz, Councilmember • Maika Llorens Gulati, Councilmember Measure R City of San Rafael Voter-Approved Tax Oversight Committee (VATOC) Summary Financials Measure R General Tax Quarter-Cent Transactions and Use Tax FY 2023-24 Audited FY 2024-25 Budget FY 2024-25 Audited FY 2025-26 Budget Revenues 4,802,175 4,840,000 4,865,497 4,870,000 Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Rachel Kertz, Councilmember • Maika Llorens Gulati, Councilmember Measure P Measure P Main Library and Community Center Special Tax Parcel Tax FY 2025-26 Budget Revenues Main Library and Community Center Special Tax 6,320,000 Total Revenues 6,320,000 Expenditures Operating 125,000 Capital 1,500,000 Total Expenditures 1,625,000 Beginning Fund Balance - Ending Fund Balance 4,695,000 Refer to the City of San Rafael FY24-25 Annual Financial Report Agenda Item No. 5.0 City of San Rafael Voter-Approved Tax Oversight Committee (VATOC) Annual Report December 11, 2025 The current Voter-Approved Tax Oversight Committee was established by City Council Resolution No. 15118, approved on September 6, 2022. The resolution effectively consolidated prior oversight committees established for each of the voter-approved tax measures which have the requirement for citizens’ oversight. In addition, Resolution 15118 established bylaws for the Voter-Approved Tax Oversight Committee which outlines the committee’s responsibilities and duties. Among the responsibilities of the committee is the requirement to prepare and submit to the City Council and the community an annual public report on the expenditures of each measure’s tax revenues for the previous fiscal year. This Annual Report has been prepared to satisfy this requirement. The City of San Rafael Voter-Approved Tax Oversight Committee met on October 27, 2025, and received a detailed report from City of San Rafael staff on the receipt and expenditure of funds during the fiscal year July 1, 2024 to June 30, 2025 pursuant to voter-approved Measure D (Library Parcel Tax), Measure E (Essential Facilities Transactions and Use Tax), Measure R (General Purpose Transactions and Use Tax), and Measure G (Cannabis Business Tax). The Committee was also provided information related to budgeted revenues and expenditures for FY2025-26 from each of these tax measures as well as the newly authorized Measure P (New Library and Community Center Parcel Tax). After review, the Voter-Approved Tax Oversight Committee finds that these funds were properly allocated and expended in accordance with the expressed purpose of each tax measure and applicable guidelines established by the City Council through the budget process. Furthermore, in order to clarify applicability of the bylaws and to assist the Voter-Approved Tax Oversight Committee in the exercise of its responsibilities, the Committee recommends that its bylaws be updated as it relates to oversight of expenditure of voter-approved tax measures that are approved as general taxes. These revenues are deposited into the General Fund to be used for any general government purposes and expended as the City Council shall, in its discretion, determine. Absent a mechanism to separately track and report the expenditure of individual general purpose tax revenues, the oversight role is largely limited to reviewing the revenues collected and the deposit of these revenues to the General Fund. As such, the Committee recommends that Section 1.2.3 of the Voter-Approved Tax Oversight Committee bylaws be amended as follows: 1.2.3 Review annual reports prepared by the City’s Finance Department that track a) the receipt and spending of each Measure’s tax funds revenues, b) the expenditure of funds for each special tax measure and c) any funds from general tax measures that are specifically earmarked by the City Council for a particular purpose through the annual budget process. Agenda Item No. 5.0 Tracey Broadman Charles 'Chuck' Friede Caleb McWaters Jon Haveman Stephen Roth