Corte Madera designates $1.2M for project funding

Corte Madera will use $1.2 million in undesignated general funds for capital improvement and recreation projects.

The Town Council unanimously agreed on the plan at its meeting Tuesday.

The town posted a general fund surplus of $3.66 million and an undesignated fund balance of roughly $4.3 million in the 2024-25 fiscal year. Projections for the 2025-26 fiscal year suggest the undesignated fund will be around $2.6 million, following pre-planned transfers, reserves and a projected dip in sales tax revenue.

Shifting $1.2 million would draw down the fund to around $1.4 million, based on current estimates. The town will shift $1 million from the undesignated general fund to the capital improvement fund to shore up its five-year capital improvement plan. The remaining $200,000 will be transferred to the recreation capital fund for upgrades to facilities identified in the park facility master plan.

The town expects the undesignated fund to “remain relatively stable” through 2030, according to a staff report. Finance Director Chris Petlock said the town is in “really great shape” to sustain temporary future dips in the general fund.

“That undesignated general fund balance is really like free cash flow in the general fund,” said Petlock. “It’s money that’s not doing anything. … The right thing to do is to put money aside for capital.”

Petlock said the money would be especially useful for unexpected capital improvements stemming from the recent tidal flooding. He emphasized that it is important to “identify as much funding as possible” for capital projects while the money is available.

Petlock said he expects improvements “down by the water” would take priority and cost more than current projections. The town is still working on a complete flood damage estimate.

Councilmember James Andrews asked for more detail about the funding.

“Where’s the half million dollars to fix the corporate yard going to come from?” he said. The corporation yard and its offices sustained significant damage from floodwaters.

“Right now we have it in the capital plan,” Petlock said. He said funding is expected to come from the capital improvement fund or Measure F funds in the first year of the town’s five-year plan.

Councilmember Pat Ravasio asked if transferring the funds would preclude the council from allocating additional general fund money to parks projects. Petlock said it would not.

“These are just estimates. We’re just trying to make the best plans we can, looking out as far as we can,” he said. “Of course, nothing here is set in stone. When things change, we’ll amend these plans.”