Novato leaders expected the town’s deficit spending to comed in at about $1.6 million by the end of the fiscal year (June 30). The Council was told last week it will likely come in at $1.8 million.
Like every city in Marin, Novato has faced several years of rising expenses, from utility costs to liability insurance to state pension costs.
The City Council last week told staff to go back to the drawing table and come up with a budget plan that is sustainable. The city has been using reserves to fill the shortfall, but those funds could be depleted in three to five years.
“Time is running out,” said new Councilmember Tim O’Connor. Staff are scheduled to return in May with a sustainable budget plan.
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