Novato looks at cuts in public works budget
Novato plans to scale back its work on streets, buildings and parks to counter the economic repercussions of the coronvirus outbreak.
The Public Works Department is proposing to reduce its capital maintenance program budget for 2020-21 by about a third compared to the year prior. The budget includes $17.6 million for 53 ongoing and new projects.
Public Works Director Chris Blunk said the budget is intentionally conservative given that the city is guessing at the losses in sales tax and gas tax revenues.
“The bottom line is there are so many question marks and unknowns right now that it's hard for anyone to say, ‘Prioritize this over that' or ‘We think you should add this project,'” Blunk said.
Early estimates forecast a $575,000 drop in gas tax revenues by the end of the current fiscal year on June 30. For the 202021 fiscal year, the city forecasts as much as a $1 million drop, or 30%, in state gas tax revenues and a $500,000 loss, or 30%, in various sales tax revenues.
If the city gets more money than expected, Blunk said, the staff can adjust later in the year. The City Council is taking a similar approach for the overall city budget. City staffers are recommending the council carry over its existing budget into the 2020-21 fiscal year and make adjustments as needed.
While many projects are still moving forward under the budget, including design work on the multi-year Novato Boulevard widening project, funding for other projects such as the Olive Avenue widening project are being put on hold for now, Blunk said.
Blunk is recommending the city place only half of the previously recommended $800,000 into the long-term maintenance fund for parks and facilities.
The budget includes about $6.7 million in funding for four new projects and 14 ongoing projects. About $4 million, or 60%, of the funds are through grants and PG&E utility work credits. The credits are being used to plan for placing PG&E lines underground for the Novato Boulevard enhancements, with the
costs eventually being recovered through customers’ electric rates once the project is completed.
The budget allots $150,000 to replace a failing retaining wall at Pioneer Park along Simmons Lane. Construction is expected to begin next spring.
Also included is $150,000 to replace dead trees, tree
lights and waste receptacles along Grant Avenue downtown. The Downtown Novato Business Association has pledged $50,000 for the project.
“It really was a great partnership with the city matching their priorities and our priorities,” said Stephanie Koehler, the association’s executive director. “The timing is so good because I think people are really going to need to see forward motion and happy things, so we’re really
pleased.”
Blunk said there is an even greater importance to the Grant Avenue project given the impacts of the coronavirus on local businesses.
The city also plans to use federal grants to modify the traffic signals at the intersection of De Long Avenue, Diablo Avenue and Redwood Boulevard. The traffic signals will be equipped to gauge vehicle speeds and adjust the yellow lights accordingly to prevent collisions.
Public workshop and committee meetings that would have normally taken place on the budget have been suspended because of the “shelter in place” orders. Blunk said input on the budget has been minimal, but encouraged residents to email comments pw@novato.org.
The Planning Commission is expected to review the budget before it goes back before the council for approval.