Why a Sunset Clause?
Novato expects the tax to raise $10.3 million in 2025 and to continue raising increasing amounts forever, as there is no sunset clause, even though the Council was asked to include one (including in a July 21st Marin IJ Editorial), just like Mill Valley and just as San Rafael did in 2020.
Despite the City's slick marketing material, there is no legal requirement to spend the money on any specific project. The taxes can be spent on anything the Council wants because California law allows the monies to be spent as the Council sees fit. The Council estimated that it would run deficits of $3.3 to $3.8 million/year over the next 5 years, yet Measure M will provide over $10 Million per/year with no limitation on how it is spent. Novato’s plans do not extend beyond 5 years and recent votes include approving low-cost loans to two third-parties against the advice of the Finance Advisory Committee.
Since 2017 Novato has not completed any annual audit on time, (being 3 years behind at one point) and is still catching up. Novato has been ineligible to receive various federal grants since 2017 because the feds often require
applicants to present current financial annual reports and Novato has been unable to do so. This has precluded Novato from applying for federal (if not other) grants worth millions. As of today, the 2022/2023 financial statements and audits have not been completed.
Instead of a sunset clause which actually enforces oversight, Novato City Council voted to use non-binding financial reviews in the 10th year and every 5 years thereafter. The reality is that the Council can do whatever it pleases, just like it did with the two low-cost loans.
If the past is any indication of the future, it certainly will be business as usual. Without a sunset clause....
VOTE NO ON MEASURE M!
Novato Needs Spending Controls
Novato has refused to provide any benchmarks in Measure M against which the public can measure progress in how Novato manages its finances and revenues. Mill Valley has provided both benchmarks and a sunset clause in its comparable sales tax measure (Measure L).
Novato is providing misleading information in support of Measure M to the effect that an "independent oversight committee" will guarantee that the tax dollars are wisely spent. In fact, as Novato's City Attorney advised on July 23, the City Council has the final say on how the funds are spent. Period. Thus, the oversight committee is no different than past committees, when the Council by 3 - 2 votes refused to follow unanimous oversight committee recommendations.
Measure M's reviews by future Councils, starting in the 10th year of the tax is toothless window dressing. It assumes that whatever Council is then in existence will be willing to conclude that it no longer needs the sales tax revenue. It's a mystery why there needs to be a 10-year wait before making that examination.
Novato is NOT going to implode without this tax
Novato has continued to assert in Council meetings, in ballot arguments, and elsewhere that a failure to pass Measure M will result in drastic cuts to important services and employee layoffs. The City knows full well that it has an approved budget covering all services and employees through June 30, 2025.
Should it so choose, beyond the approved budget through June 2025, Novato has sufficient funds available either in its General Fund or in other City funds. Novato is able to cover budgets providing not only the same or similar services, but budgets accounting for inflationary increases through June, 2027.
The Novato City Council is able to propose a better sales tax measure including a sunset clause, well before June, 2027.
During that time, our committee recommends strongly the City of Novato explore how it may save money by joining with other entities.
Other Marin cities have taken such steps, for example by combining police services or fire districts. Surely cost saving steps are within Novato's grasp if only it tried to do so.
Additionally, other revenue streams can be created through the sale or lease of City owned properties, and the implementation of a viable economic development plan to attract businesses.
If the City were serious about passing a sales tax with appropriate guardrails, it could be back on the ballot for the March 4, 2025 Special Election, or the May 6th Special Election.
Any new tax measure should include a sunset clause and appropriate guardrails including those recommended in the Grand Jury's June 2023 report which Novato has refused to follow.
