Council approves revised Downtown Novato Business Association budget and updates to agreement

The Novato City Council unanimously approved a revised Downtown Novato Business Association (DNBA) 2026 budget and an amendment to the DNBA administration agreement that updates insurance and indemnity requirements to the city’s current standards.

Economic development director Katie Schirping told the council the revised DNBA budget centers on downtown activation and marketing and projects roughly $280,000 in total revenue with proposed expenses of $239,495, producing an anticipated surplus of $44,587 to be added to DNBA reserves. Schirping said the revised budget removes capital responsibilities for planter and tree-light maintenance that the city will manage, which reduced DNBA projected expenses.

Schirping and DNBA executive director Stephanie Kaler answered council questions about the budget’s composition, noting that roughly $70,000 each comes from the BID assessments and a city match, and that additional revenue is expected from downtown events such as Rock the Block and Nostalgia Days. Schirping described administrative costs at about 10% and payroll and insurance at around 38% of the revised budget.

Council members asked about larger city investments in downtown — including tourism funding, tenant improvement grants and city-run events — and about specific line items such as print advertising versus mailed materials. Kaler clarified that DNBA has shifted away from mailed materials toward targeted print advertising and that insurance costs have historically been covered to the higher limits requested; the agreement amendment brings the written language into alignment with existing coverage.

Schirping reported the city received two formal protests during the last BID assessment cycle from businesses that said the BID activities did not benefit their operations; staff said they had followed up directly with those businesses. Councilmember Jacobs and others raised questions about insurance cost impacts; Kaler said the association had previously increased coverage to comply with city changes.

Councilmember Eklund moved to approve the first amendment to the amended and restated agreement for the DNBA administration district; the motion and an associated resolution were seconded and passed on a unanimous roll call vote.

The council’s action authorizes the city manager to execute the amendment; staff said further DNBA oversight and downtown support will remain part of routine budget and program discussions.