City Finance Director Eric Erickson told the Mill Valley City Council that the city “relinquished $6,600,000 worth of property tax revenue to Southern Marin” under a council‑approved formula and otherwise closed fiscal year 2024 roughly on budget, with reserves above policy levels.

The report, presented during the council’s regular meeting, said the city maintained its 15% restricted contingency reserve required by council policy and finished the year with an overall fund balance the finance director described as “about 24%” when measured against operating expenses. Erickson cited stronger‑than‑expected receipts from building and encroachment permits and investment income as the primary drivers of positive revenue variances.

Why it matters: the transfer and consolidation of fire services to Southern Marin changes how Mill Valley records fire expenses and property tax flows, and the larger-than-expected reserves affect near-term budget planning and the city's ability to fund capital projects, council members said.

Erickson said the $6.6 million payment to Southern Marin was implemented in the first year as a direct check while county mechanisms were being finalized and that going forward the county will handle the transfers. He described several one‑time mechanics related to the transition: Mill Valley paid certain fire department salaries in 2024 while Southern Marin reimbursed the city under the staff‑transfer agreement. “They have the money for all of those salaries,” Erickson said of Southern Marin, explaining why reimbursements occurred.

On performance details, Erickson noted that building and encroachment permits, and investment income, produced favorable variances. The golf course, he said, roughly broke even for the first time in years, and recreation revenues and costs moved toward pre‑pandemic patterns even as staffing and safety expenses increased.

Councilmember Joaquin asked whether it was “a good safe assumption to use that $18,000,000 figure going forward” for property‑tax revenue. Erickson replied that the calculation is complex because of ERAF (Educational Revenue Augmentation Fund) and other allocation ratios, and said he was comfortable with the figure only within a few hundred thousand dollars.

Councilmembers pressed staff for more historical context. The council directed staff to return with a multi‑year presentation on revenue trends and reserves and to work offline with Finance staff to refine the management report; Erickson and Trustee Trevor Atashkarian agreed to coordinate with Councilmember Karmel on that follow up.

On reserves and Measure L: Erickson said the city’s contingency reserve policy remains 15% and that the year’s result left the city with a substantially larger unrestricted balance than typical. Councilmembers noted Measure L funds — a local infrastructure revenue source — will begin arriving in April and that Measure L receipts will be accounted for in a separate fund and budgeted to specific capital projects to preserve transparency.

No formal council votes or budget amendments were taken during the presentation. Staff said they will return with more detailed tables (four to five years of history) and recommendations during the spring budget review cycle.

Ending: The council accepted the report for information, asked staff for follow‑up analyses on long‑term revenue trends and permit‑fee predictability, and directed staff to return with more data before the next two‑year budget decision.