Council reviews FY26 draft budget and five-year CIP; capital projects fund projected at $11.75M, civic center needs additional financing

The Ross Town Council spent the better part of its April 24 meeting on the draft fiscal year 2025–26 budget, a five-year financial forecast and the five-year capital improvement program (CIP).

Town Manager Krista presented the draft budget and forecast, and emphasized that the town remains in generally healthy financial shape largely because of the public safety parcel tax renewed in March 2024 and conservative management. Staff projects an operating fund surplus for the current fiscal year of roughly $617,000 and plans a transfer that would bring the capital projects fund to an estimated $11,750,000 by the end of fiscal year 2026, assuming the draft budget's transfers and no additional large-scale borrowing.

Key financial items discussed

- CalPERS and pension liabilities: Krista summarized the town's pension exposure and mitigation steps. The most recent CalPERS valuation showed an unfunded accrued liability of about $6.1 million for the town. The forecast includes optional annual paydowns of $200,000; the town's mandatory CalPERS payment for FY26 is projected at just under $500,000, and staff noted required pension costs could reach approximately $1.1 million annually by FY2030 if actuarial assumptions and markets shift.

- Fire services and JPA savings: The council heard that the planned closure of one Ross Valley Fire Department station will…