Corte Madera advisory committee recommends $1M to capital fund, $200K to parks from 2024-25 surplus

The Corte Madera Town Financial Advisory Committee voted to recommend that the town council move $1,000,000 from the general fund into the town capital fund and $200,000 into the recreation capital fund to help fund the five-year capital program and park projects.

Staff presented preliminary 2024-25 numbers, noting the audit is still in progress. "We have a $3,600,000 surplus before transfers," said Speaker 4, a finance staff member who presented the report, and after council-designated transfers he said the undesignated surplus available for recommendation was about $1,200,000. Staff explained the council had already set aside roughly $2.4 million in transfers earlier in the year for town capital, technology, wildfire mitigation and recreation capital.

Committee members pressed for clearer labeling of reserves and ending fund balances so the public can distinguish cash held for timing and cash that is truly discretionary. Speaker 2 explained the finance approach of preserving an undesignated ending fund balance for cash-flow timing and emergency needs. Members noted the town's reserves total about $12 million and that the general fund reserve target recently moved from a 20% minimum to a 25% target with a goal of 30%.

Several members asked about specific items in the staff packet. The Park Madera fund appeared as a negative $1.4 million line item; staff said this reflects historically recognized debt or an accumulated deficit tied to the Park Madera Center, with rents and maintenance affecting the cash position. Committee members and staff agreed to bring Park Madera back for a focused review to clarify whether the negative balance represents an actual debt obligation, schedule of principal payments, or an accounting accumulated loss that does not represent immediately payable cash debt.

Members also asked how the town would meet short-term disaster needs. Staff said emergency response is supported both by the 25% general fund reserve and by other restricted reserves (for example, sales tax reserves and sanitary district reserves). "Insurance is generally a reimbursement," staff said, and the town participates in a pooled self-insurance program; staff noted the town paid about $700,000 into that pool this year.

During questions from the committee, staff described the capital plan and explained that red-highlighted projects in the five-year plan represent projects for which funding has not yet been identified; the plan is adopted through 2026-27 and priorities and funding sources will be revisited each year. Staff said the town intends to aggressively seek grant funding for climate adaptation projects but that, if grants are not available, the town may need to evaluate other financing options such as assessment districts, debt or local measures down the road.

Public comment came from Councilmember Andrews, who recommended the committee and staff provide month-by-month revenue and cash-flow charts so the public can better see which revenue streams are volatile or lumpy and which are steady.

A motion to recommend the staff's funding proposal was moved and seconded; a roll-call vote recorded members' assent and the motion passed. Following the vote, members requested follow-up agenda items: a detailed Park Madera review, an insurance/reserves briefing, and a revenue volatility analysis by source. Staff said it would schedule those studies and send calendar invitations earlier.

The committee's recommendation now goes to the town council for final action.