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Novato
Mill Valley and Novato have sales tax increases on November's ballot. Let’s compare them
Does the Measure have a Sunset Clause?
Mill Valley’s Measure L expects the tax to raise $4.2 million in 2025. There is a sunset clause requiring that the tax,
“expire in 10 years to ensure that officials regularly review and justify the continued need for the tax, promoting transparency in how public funds are used and ensuring accountability in spending”. (MV Resolution in Support, Sec. 11)
Novato’s Measure M tax is estimated to yield $10.3 million in 2025 and will continue raising increasing amounts, forever, as there is no sunset clause, despite the City Council being asked to include one, as Mill Valley is doing and as San Rafael did in 2020.
On what will the taxes be spent?
Mill Valley identified infrastructure upgrades over the next 15 years with projected costs at $150 - $180 million, well beyond available budget allocations.
Novato did not identify any particular items it would spend the tax revenues on. The taxes can be spent on anything. The Council estimated that Novato would run deficits of $3.3 to $3.8 million per year over the next 5 years.
Novato’s plans do not extend beyond 5 years. The Mayor blames the deficits on past actions.
Has the City tried grants funding?
Mill Valley,
“has a well-established practice of leveraging local, State and Federal … grants to proactively maintain and upgrade infrastructure and facilities[. H]owever, despite its longstanding financial responsibility, its current and looming infrastructure challenges make it critical for the City to proactively work towards preventing structural failures, and [the tax] is essential to save significant costs and protect public safety.” (Ibid, Sec. 6)
Novato has failed in seeking various federal grants since 2017 because State and Federal agencies often require applicants to present audited current annual reports. Novato has not completed a timely annual audit, since 2017, and is still catching up! (The City was 3 years behind at times: They published the2021/2022 fiscal year Financial Report in April of 2024)
This has precluded Novato from applying for various government grants worth millions if not tens of millions dollars.
If there public accountability?
Mill Valley approved the sales tax increase subject to transparency and accountability such as financial audits and oversight by an independent Citizens Oversight Committee, public disclosure of all spending, and a public budgeting processes. (Ibid, Sec. 10)
Allegedly, to ensure financial oversight, Novato included a City Council review of the tax in the 10th year, to determine if the tax is still needed, and additional Council reviews every 5 years, thereafter. However, the Council is not bound to follow the findings of its own reviews, even if those findings indicate an adverse impact.
The Novato tax is also subject to annual audits by a citizen’s oversight committee. That review is then considered by the Council, which can do (and has done) whatever it pleases.
(There have been instances where the Council, on 3 to 2 vote, has decided against unanimous recommendations of the Oversight Committee.)
Conclusions
Mill Valley has carefully documented a need for funds and is asking voters approve a 10-year sales tax covering less than half of its needs. Novato has estimated deficits for the next 5 years and is asking voters approve a sales tax that could go on forever, which in the first 5 years, covers over three times its estimated 5-year deficits and additional tens of millions thereafter.
Novato has no specific plan as to what the increasingly large tax would cover over the decades it is in place. The funds Novato’s tax will raise are substantial and there is no check - no guardrail - on how they are spent.
In 10 years, the Mill Valley tax expires. If an additional tax is needed, it will return to the voters. Novato waits for 10 years to have the Council decide, without a public vote, whether it wants to continue the tax. If it does, the Council’s decision is final. Voters do not have a voice in the matter.
The Council repeats this exercise every 5 years thereafter, forever.
Novato claims that without the tax it will have to cut staff and services. That is incorrect. No cuts need take place through the June 2025 conclusion of the current budget cycle.
Novato has sufficient funds to pass similar budgets, including an inflationary increase, through June 2027, allowing it time to have voters approve a sales tax increase with an end date and, like Mill Valley, insure accountability with the ultimate guardrail, a sunset clause.
Alternatively, Novato can return to the voters as early as March 4th or May 6th of 2025 (if it declares the need for an election is an emergency) with a new sales tax measure containing guardrails including a sunset clause.
Novato voters should insist on good government by rejecting Novato’s Measure M on November 5.
Is there community support or opposition?
The Coalition of Sensible Taxpayers is a Marin County watchdog nonprofit dedicated to keeping local taxes and fees on essential services fair and affordable for all of Marin.
- CO$T supports the Mill Valley Measure (L).
- CO$T opposes the Novato Measure (M).