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Our Research

Click on links below to take you to reference material used in formulating our opinion that this measure needs to come back to the voters with a sunset clause and a binding independent review board. 

  • Novato auditors found repeated material weaknesses and repeated significant deficiencies in latest 2021/2022 audit.  

    • See page 8 where question is asked whether Auditee (Novato) is considered low risk.  The answer is NO.  

    • ​See page ​9 where the effect of one material weakness was that financial statements contained material misstatements requiring corrections and were not presented to council in a timely manner.

    • See page 11 where the city was called out for not reconciling financial statements.

    • See page 12 where the audit revealed potential misstatements of city revenue.
       

  • To see all past audits visit Novato's Finance page and click the "+" sign on the Single Audits section to reveal all past audits.  Please note, Novato is still 2 audits behind.
     

  • To watch discussion of the loss of grant money due to incomplete audits, see City Council Meeting of July 9, 2023. 

    • Note timestamps 1:28 when Mayor Pro Tem Tim O'Connor says "...right now we can't apply for <federal grants>", and 1:46 where Council Member Pat Eklund asks how much we have lost because our audits are not complete and the staff's response of, on average, $1 million/year.

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  • Read the Marin Grand Jury's report entitled "Novato’s Chronic Fiscal Deficits: A Call to Action" dated June 8, 2023.  

 

  • Read the City of Novato's Response to the Marin Grand Jury Report. (scroll down to the responses section)

 

  • Watch the July 23rd City Council meeting:

    • Check timestamp 3:14:25 where Pat indicates disappointment that council is already declaring support without discussion of the sunset clause and asking for that discussion because spending has been out of control (as in SMART station and low cost third party loans). 

    • Check timestamp 3:42 where they discuss monies being spent on third party loans, SMART coming from Hamilton Trust despite Hamilton Trust never being intended for a piggy bank.  

    • Check timestamp 3:49:18, where the City Attorney tells the City Council there is no language in the ballot measure preventing them from "changing direction" on spending.
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  • Novato Annual Comprehensive Financial Report, Fiscal Year 2021/2022

    • ​See page 52: Advances to/From Other Funds Discusses Hamilton Trust funding the building of the downtown SMART station with $2.2 million and the June 30, 2022 balance of the loan as $1,789,126, with an interest rate of 3.65%. The loan is to be paid off in March 2037.

    • See page 79: The loan to the N Bay Children's Center. Authorized 10/25/2022. $2.1 million was borrowed from the Hamilton Trust, to be paid back over 30 years. Interestingly, there is not mention of the interest rate of the loan (which was 2.5%)

    • See page 97 Hamilton Trust balance as of June 30, 2022 of $32,231,592.

    • See page 146 for the balance as of June 30, 2022 in the Equipment Replacement Internal Service Fund of $6,101,944 in unrestricted funds.

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  • Read Marin IJ Columnist Dick Spotswoods opinion article that "Some Marin’s tax proposals built better than others" Note - if you are not already an IJ subscriber, and have used your free previews, you may have to subscribe to read.  

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  • Read Marin IJ Editorial Board article titled "Novato Needs to be Specific with Proposed Tax Measure" urging Novato City Council to include a sunset clause in their proposal for an additional sales tax.  

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  • Watch at timestamp 23:54, when Bernie Meyers speaks in front of the City Council about their misleading tax revenue marketing materials.  Those materials state that Novato receives the lowest amount of property tax revenue (7%) without explaining that other cities manage and pay for their Fire Services and in the case of San Anselmo and San Rafael, their Library Services through the City where Novato does not.  Novato Fire District is a separate entity and does not report to the City of Novato.  Novato's Library Services are run by the County of Marin.   San Rafael has a City run Library.  When property tax revenue for Novato's  fire service is accounted for (14.5%), Novato has second highest property tax revenue among Marin cities.  

    • Source is the Draft Fiscal Sustainability Plan submitted to the Council June 20, 2013​

      • See Page 24. Novato is not a full-service city. ... Novato, in contrast to many other cities, does not provide sanitary, fire or water services to the public. These services are provided by the relevant special district."​

      • See Page 25 chart showing Marin's 11 cities and the property tax percentage each receives. Novato is on the left end of the chart and it shows that Novato taxpayers benefit from 21.1% of their property taxes between the share the city gets and the Fire District gets, which puts Novato above all of Marin cities except San Anselmo at 23% and Mill Valley at 26%. 

      • Page 87 Describes a loan taken out of the Hamilton Trust in 2004 to finance improvements at the Corporate Yard. The loan was for $1.7 million at a 6.5% interest rate. In 2013 Novato still owed about $1.2 million on the loan and was making annual payments of about $155,000.

      • See page 145 (where the history of the loan is again set out, but this time the loan is stated as being for $1.8 million.)

      • Page 129. "The City owns a significant number of buildings, about 15 of which would be considered as 'actively used' with many more either not operational or only rarely used."

      • Page 156. Staff recommends the best solution to expand the revenue base to extend or make permanent the ).50% sales tax currently in place. Eventually, the council would place on the ballot a .25% sales tax, Measure C.  

         

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