Marin County supervisors have approved a $865.8 million budget for the 2025-26 fiscal year, projecting a 7% increase in revenues from this year and a 6.2% rise in expenditures.

“I think we are moving forward in ways that honor our successes in the past and also chart a course for the future that will acknowledge changing circumstances,” Supervisor Stephanie Moulton-Peters said.

The supervisors voted unanimously on Wednesday after three days of budget hearings.

Employee costs are projected to grow by 4% through current contracts, adjustments to benefits and changes to positions, according to a staff report.

The budget also has $10.4 million in one-time expenditures, including $1.25 million for the county’s “participatory budgeting” process that invites residents to vote for funding to address inequities. Other one-time funding involves county facilities, housing initiatives and accessibility improvements at parks.

Such one-time expenditures will come from savings of $35.4 million in the current fiscal year, which ends June 30, according to the county.

Supervisors accepted the budget at a time when county officials foresee national economic uncertainty and potential federal and state funding cuts. The county staff expects to make adjustments to the 2025-26 budget later this year.

“If the county identifies a need to adjust services based on changing conditions and funding, we will do so in a manner which seeks to mitigate negative impacts on our residents,” a finance staff report stated.

About 37% of the new budget’s estimated revenues will come from the state and federal sources.

After supervisors adopted the budget, Supervisor Mary Sackett said the county has reserves to mitigate impacts from federal and state cuts.

“We’re maintaining healthy reserves so we can make strategic decisions in the face of potential reductions,” said Sackett, the board president.

The county budget staff said the reserve for economic uncertainties is $71 million.

Supervisor Dennis Rodoni outlined what he believes are the county’s priorities if federal cuts happen.

“Protecting our most vulnerable residents, our immigrants, our undocumented, our LGBTQ+, our disabled residents and older adults and our children should be our priority,” he said.

The bulk of the county’s discretionary funds come from property taxes. County staff told supervisors that property tax growth is projected to slow to 4% in 2025-26 and 2026-27 before increasing to 4.5% in the 2027-28 fiscal year.

Supervisors also approved a proposal to reorganize the county executive’s office to improve department oversight and project management. The county plans to add 17 full-time positions in the process.

The county also plans to expand the Marin County Fire Department by adding eight full-time positions.

The new budget outlines $20.4 million for affordable housing investments. The allocations include $9.9 million for converting the former Coast Guard housing in Point Reyes Station into affordable residences, and $6.7 million for the Oak Hill public-sector housing project in Larkspur.

The county is planning for hundreds of new affordable residences in unincorporated areas over the next several years.

“We have continued to make significant investments in affordable housing,” Supervisor Eric Lucan said. “We know that it’s not enough and we know we are going to get a lot of requests.”

In the county’s general fund, public safety agencies will receive $97.7 million, followed by administration and finance services at $81 million and health and social services at $79.2 million. The planning and public works offices are slated to get $28.8 million. Community services such as parks management, cultural events and the agriculture office are budgeted for $8.5 million.

“The budget has been crafted in a way to be responsive and reflective of some of the economic headwinds that are out there, and is responsive in a position as to be nimble with state reductions,” County Executive Derek Johnson said.