Finance Subcommittee 11/10/2026

The City of San Rafael Finance Subcommittee met on November 10, 2026, to review the FY 2025–26 audit and first-quarter budget update. The independent auditor reported clean opinions for the city’s financial statements, child development program, and Transportation Development Act report. Audit findings included controls related to the new ERP system, employee access, bank signature cards, permit-fee documentation, and capital-asset accounting; the auditor reported that prior recommendations concerning purchasing-policy compliance had been implemented, with no purchasing-policy findings in FY 2025–26. The audit materials were expected to go to the City Council, with the complete report pending information from the San Rafael Sanitation District.

The subcommittee also discussed the city’s financial position, reserves and liabilities, and capital spending. The first-quarter report showed $56.2 million in the capital improvement budget, with 18.2% expended and $3.7 million encumbered; staff noted that capital spending is cyclical and varies by project, and that the report now provides project-level status. Staff said Measure P debt issuance for a new library and community center would generally be timed to the construction contract, with financing timing and interest rates considered. The budget update was informational, and no contract awards or spending actions were approved. The only motion recorded was approval of the prior meeting’s minutes.