The Corte Madera Town Council has adjusted its budget because of both increased expenses and more sales tax funding.

The council unanimously approved revisions to its 2024-25 fiscal year budget at its meeting last Tuesday. The changes were needed because of an unexpected surplus of sales tax revenue, which will offset growing expenses caused by higher staff salaries and consultant costs.

The general fund operating budget was amended to increase the projected revenue by about $377,000. The funds stem from a correction in sales tax revenue from a prior year, which will cover this year’s expense increases.

“That’s to match the current year expenditures that we’re proposing,” said Daria Carrillo, the town’s finance director. “The town has recently received $408,000 in unbudgeted sales tax revenue in connection with a prior year.”

Expenditures and transfers out of the general fund increased in several areas. Planning department expenditures went over by $66,206, mostly because of salary, retirement and benefit changes. Salaries were increased by 4%, instead of the anticipated 3.5%.

Another $53,800 is for human resources and management. The town previously shared a manager with Larkspur but the staff member retired, and planner was hired at a higher salary than budgeted.

“It will be necessary to pay the retired human resources manager any leave accrual that was due to her, and then she was going to work a couple weeks overlapping with a new firm that we recently signed an agreement with,” Carrillo said.

Administration and finance spending increased by $2,000, primarily for overtime, Carrillo said. Fire service expenses rose by $226,000 because of collective bargaining ending after the budget had been adopted. The budget assumed a 3.5% salary increase, but after bargaining the salaries increased by 6% to 10%.

“As I said, the current year expenses will be paid for by that increase in sales tax that the town was fortunate to receive,” Carrillo said.

Other increased expenses were related to building, code enforcement, engineering and public works.

About $3.3 million was left over last fiscal year. The finance committee recommended putting $100,000 into a trust to support the town’s “other post-employment benefits” fund. Carrillo said the town’s liability is 73% funded, and while Corte Madera does not need to make a contribution this year, it will help the town “stay ahead” on the issue.

Additionally, Carrillo suggested putting $1 million into the capital improvement fund, $400,000 into the recreation capital fund and $600,000 into an equipment fund to buy a new ambulance.“About every five years, through our fleet replacement program, we typically try to replace our frontline ambulance, which then gets put into our reserve status as backup ambulance,” said Chief Ruben Martin of the Central Marin Fire Department. “Then our ambulance that’s 10 years and older and beyond then gets surplussed.”

Martin said the new ambulances have improved technology, including a heart monitor that shows hospitals real-time data while the ambulance is en route.

The Town Council also approved increasing the reserve fund from 20% to between 25% and 30%, adding $1.1 million. The reserve fund now has $5.8 million.

Councilmember Eli Beckman supported transferring funds to the town’s benefits fund and increasing the reserve fund. He said it is important to stay fiscally responsible and not become complacent.

“I think this council, past councils, and our staff did a lot of hard work turning around Corte Madera’s finances and taking us from near bankrupt to I think probably in the strongest financial position of any city in Marin,” Beckman said. “So that is awesome.”

The general fund is estimated to have a balance of $832,000 at the end of the fiscal year.