San Rafael council reviews preliminary FY 2025–26 budget and three‑year capital plan; accepts report 5-0

San Rafael Mayor Kate Collins and city staff presented a preliminary citywide budget for fiscal year 2025–26 and an accompanying three‑year capital improvement program (CIP) at the May 19 city council meeting, and the council voted 5‑0 to accept the report and direct staff to prepare a final proposed budget for adoption on June 2.

The presentation laid out proposed general fund revenues of about $106.5 million, total revenues and transfers in of roughly $189.6 million, and proposed appropriations and transfers of approximately $191.7 million. Paul Navazio, director (finance), told the council there was “no action being asked of the council this evening” while staff sought feedback and refinements before formal adoption.

The proposed general fund budget assumes modest revenue growth (about 2.5 percent overall) driven by property tax growth and largely flat sales tax projections. Navazio said staff now project the city will increase its general fund balance by about $1.5 million relative to the current budget at year‑end, after downgrading revenue expectations because sales tax has flattened. The draft 2526 budget includes $6 million of one‑time general fund transfers intended to address shortfalls in insurance/liability, capital needs, pavement maintenance and vehicle replacement; those transfers draw on…