Mill Valley fine-tunes city budget
Mill Valley city leaders face few surprises midway through the two-year budget cycle, but anticipate a cooler local economy in the near future.
“The fiscal year 25-26 budget amendment remains on course with our long-range financial plan,” City Manager Todd Cusimano said Monday.
That plan includes $63.2 million in expenditures for the fiscal year starting July 1, setting aside more money than this year for unfunded retiree benefits, and spending $15.9 million toward an estimated $180 million in infrastructure repairs in the next 15 years.
“As long as your revenues are growing faster than your cost … you’re basically managing your expenses in a way that will allow you to improve your services to the community,” Councilmember Urban Carmel said. “Everything else below that is details about where the money is going.”
The council unanimously approved the budget presented by Cusimano and Deputy Budget Director Trevor Atashkarian.
Compared to the current fiscal year, the 2025-26 budget anticipates revenues will grow by 14.8% to $65.1 million. The increase includes million-dollar grants to stabilize Ethel Avenue and install EV charging stations. Property tax and building permit revenue will grow. But sales tax revenue will likely flatten for the next few years. Rents from city-owned properties are also expected to fall next year.
On the expense side, the budget will see spending grow by 11.4% to $63.2 million. Apart from $15.9 million in capital improvements, a $6.6 million increase, the largest jumps include employee benefits, police salaries and new gear and recreation facility costs. The city has 130 employees.
Measure L, which passed in November and raised local sales taxes by 1%, will bring in an estimated $3.8 million. Those funds will be used for wildfire prevention, roads, bridges, emergency services, flood mitigation, hillside stabilizations and library, community center and playground repairs.
After a detailed review of revenues and expenses, only a few items sparked extended discussion. Those included putting more money into retirement accounts, increasing the city’s emergency reserves, and ensuring all programs pay for themselves.
The city’s aquatic fees and programs were $700,000 in the red, Cusimano said. “If we don’t catch up, we won’t catch up.”
“I understand coming out of COVID we didn’t keep up with increasing fees,” Councilmember Caroline Joachim said. “Trying to correct that is important, but also is understanding that increasing fees is going to impact our community members.”
The 2025-26 budget has no pool fee increases, but Cusimano suggested the council create a committee to study the issue.