Marin County Grand Jury
• 2024-2025
Novato’s Chronic Fiscal Deficits: a Call to Action
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 10 findings
F1
The City of Novato is facing an ongoing structural financial deficit.
Related Recommendations (1)
R1
By December 31, 2023, design and begin implementation of a plan to address Novato’s ongoing structural financial deficit. This plan should include resources, staff, and systems necessary to institute strong financial controls to improve its financial condition and to enable timely independent financial audits.
F2
The City Council has not adequately pursued options for ongoing sources of revenue, including increasing its local sales tax.
Related Recommendations (1)
R5
By October 1, 2023, begin strategic planning to increase the City’s sales tax.
F3
The City’s financial deficits have resulted in reductions in City staff, and difficulties in hiring and retaining employees.
No recommendations for this finding
F4
The City’s financial deficits have resulted in a reduction of City services.
No recommendations for this finding
F5
The City’s financial deficit will significantly increase once new labor contracts go into effect.
No recommendations for this finding
F6
The City’s Finance Department’s inadequate staffing resulted in insufficient financial controls, incomplete records, and a loss of financial accountability.
Related Recommendations (1)
R1
By December 31, 2023, design and begin implementation of a plan to address Novato’s ongoing structural financial deficit. This plan should include resources, staff, and systems necessary to institute strong financial controls to improve its financial condition and to enable timely independent financial audits.
F7
The City lacks comprehensive and functional records management systems.
Related Recommendations (1)
R4
By December 31, 2023, develop a schedule to install and maintain comprehensive records management systems for all City operations
F8
The City lacks a plan to optimize revenue from its existing properties, including the sale of City owned properties. The City owns many properties that are vacant or in disrepair, and others where ongoing expenses exceed income.
Related Recommendations (1)
R6
By December 31, 2023, initiate a comprehensive inventory and review of the City’s entire portfolio of properties to identify opportunities for more cost-effective use of each holding. The assessment, including recommendations and timelines for implementation, should be completed no later than May 1, 2024.
F9
The City has not provided sufficient financial and operational oversight of the Marin Valley Mobile Country Club. The property operates at a substantial deficit, has ongoing deferred maintenance, and presents increasing administrative and financial burdens on the City.
Related Recommendations (1)
R7
By December 31, 2023, implement a plan to address the operational and financial condition of the MVMCC, including an evaluation of options for rent increases.
F10
The City’s Finance Advisory Commission has the responsibility, but lacks the authority, to effectively oversee the City’s financial condition and operations.
Related Recommendations (2)
R2
By December 31, 2023, the City Council, in consultation with the Finance Advisory Commission, should consider creating and funding a new position of an independent internal auditor with the authority to investigate and report on City operations.
R3
By December 31, 2023, require the Finance Advisory Commission to issue quarterly financial reports on the City’s financial condition and require that the reports be discussed at City Council meetings.
No Responses Found 1
Government entities assigned to respond to this report. No response documents have been linked in our database.
Novato
City