SUPPLEMENTAL REPORTS & COMMUNICATIONS
Office of the City Clerk
City Council of the City of Napa
Regular Meeting
June 20, 2023
FOR THE CITY COUNCIL OF THE CITY OF NAPA
AFTERNOON SESSION:
SUBMITTED PRIOR TO THE CITY COUNCIL MEETING
3. ADMINISTRATIVE REPORTS:
3.A. Financial and Economic Indicator Update, June 2023 • PowerPoint Presentation from Robert Eyler, PhD., updated on June 20, 2023.
5. CONSENT CALENDAR:
5.I. City of Napa Fiscal Policy Update
1) Memo from Rajneil Prasad, Finance Director, received on June 20, 2023.
7. PUBLIC HEARINGS:
7.A. City of Napa 2023/24 and 2024/25 Budget Adoption
• PowerPoint Presentation from City Staff.
AFTERNOON SESSION:
SUBMITTED DURING THE CITY COUNCIL MEETING
4. PUBLIC COMMENT:
1) Leaf Blower Rebate Program handout received on June 20, 2023.
SUPPLEMENTAL REPORTS & COMMUNICATIONS
Office of the City Clerk
City Council of the City of Napa
Regular Meeting
June 20, 2023
FOR THE CITY COUNCIL OF THE CITY OF NAPA
AFTERNOON SESSION:
SUBMITTED PRIOR TO THE CITY COUNCIL MEETING
3. ADMINISTRATIVE REPORTS:
3.A. Financial and Economic Indicator Update, June 2023 • PowerPoint Presentation from Robert Eyler, PhD., updated on June 20, 2023.
5. CONSENT CALENDAR:
5.I. City of Napa Fiscal Policy Update
1) Memo from Rajneil Prasad, Finance Director, received on June 20, 2023.
7. PUBLIC HEARINGS:
7.A. City of Napa 2023/24 and 2024/25 Budget Adoption
• PowerPoint Presentation from City Staff.
CITY OF NAPA: DASHBOARD
CITY COUNCIL PRESENTATION
NAPA, CA
JUNE 2023
Robert Eyler, PhD
President, Economic Forensics and Analytics Inc.
Professor, Economics, Sonoma State University
[email protected]
1 City Council Regular Meeting
6/20/2023
Supplemental I - Item 3.A.
From: City Staff
Employment Recovery Comparison, United States, Great Recession and COVID
-
19 Recession, Index Nov 2007 and Jan 2020 = 100,
Monthly to April 2023, Seasonally Adjusted
2 Source: BLS and EFA
102.6
75.0 80.0
85.0 90.0
95.0 100.0
105.0
1 3
5 7
9 11
13 15
17 19
21 23
25 27
29 31
33 35
37 39
41 43
45 47
49 51
53 55
57 59
61 63
65 67
69 71
73 75
77 Great Recession
COVID-19
Inflation on the Clock: 2007 to 2025 and beyond
3 What to Watch
•
Yield Curves
•
Housing prices
•
Wages
•
Employment levels
•
FED Rhetoric
Can we get back to 2%?
Core PCE Inflation (%)
Unemployment Rate (%)
Real GDP (%)
Annual data (projections based on annual
-
average levels):
New
Previous
New
Previous
New
Previous
3.7 3.0
3.7 3.8
1.3 1.3
2023
2.3 2.3
4.3 4.2
1.0 1.4
2024
2.0 2.1
4.4 4.2
2.4 2.2
2025
N/A
N/A
4.3 4.1
2.3 1.5
2026
Federal Reserve Philadelphia
Forecast, Survey of Professional Forecasters
Source: Federal Reserve Philadelphia Branch
These data are from May 2023
Bottom Line:
Economy slower now through 2024, as lingering inflation and relatively high interest rates spread costs over next two years minimum Napa at a Glance: end of Q2 2023
5 Employment Trends: City Residents Working or Looking for Work, Jan 2019 to March 2023
6 T ourism, Average Daily Rate ($) and Occupancy
Rate (%), April 2019 to March 2023
7 Housing: % Change Median Home Price April 2020 to April 2023 Median Rents, April 2019 to April 2023,
City of Napa and Selected Cities and Counties
8 Source: Zillow
TM
Research
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Three Year
From Peak
Equity Measures: Severe Housing Burden
City of Napa and Selected Cities and Counties
9 % of Households with Rent as at
least 30% of monthly income
Housing Burden
2021
2020
2015
2010
Place
24.0%
23.9%
25.2%
24.8%
Napa City
24.6%
23.4%
23.8%
24.3%
Napa County
25.0%
24.7%
27.5%
26.5%
Sonoma
24.4%
24.0%
27.2%
26.8%
Marin
25.2%
24.5%
28.5%
26.8%
Solano
23.5%
21.6%
26.6%
24.8%
Yamhill
23.7%
22.4%
25.9%
26.1%
Fairfield
21.0%
19.8%
22.2%
25.7%
Livermore
20.3%
21.0%
22.2%
26.7%
Petaluma
27.9%
29.5%
29.7%
31.1%
San Rafael
29.9%
32.5%
37.2%
31.4%
Santa Cruz
26.3%
24.1%
28.2%
29.1%
Temecula
25.4%
24.8%
24.8%
20.3%
Monterey
26.3%
26.2%
28.2%
26.7%
CA
22.9%
22.7%
24.6%
23.9%
US
Housing Burden: % of after
-
tax income paid for rent
or ownership (these data are just rentals)
•
A percent over 50% is considered “severely
burdened” in housing advocacy circles
•
City of Napa near 25% of renters since 2010
•
Caveats
•
Burden is a function of housing costs and
incomes
•
Napa is 10
th
highest of this group as of
2021 (the latest Census data)
City of Napa: Things to Watch
•
Toward 2024
•
Macroeconomic context remains uncertain: foreign and domestic •
Expect interest rates to fall slightly, slower economy into 2024 •
Inflation remains stubborn to tame
•
Travel industry:
•
Likely another strong year for Napa
•
Longer
-
term: how do Bay Area jobs shifts affect Napa demand?
•
Housing forecast slightly better toward summer 2024
•
Lower interest rates and lower inventory mixing together •
Rents still rising: once interest rates fall, likely a race to available homes 10 Thanks!
Questions?
[email protected]
@bobby7007
11 City Hall: 955 School Street, Napa CA 94559
Mailing Address: P.O. Box 660, Napa CA 94559
(707) 257
-
950
3
www.cityofnapa.org
MEMO
TO:
Mayor and City Council
Steve Potter, City Manager
FROM:
Rajneil Prasad, Finance Director
CC:
Jessie Gooch, Budget Officer
DATE:
June 20, 2023
SUBJECT:
June 20
th
Agenda Item 5.I. City of Napa Fiscal Policy Update
After the City Council Agenda packet was published for the Regular Meeting on June 20, 2023, a typo was identified in Exhibit A for Attachment 1 on item
5.I. City of Napa Fiscal Policy
Update
. On Page
13 of Exhibit A, in Fiscal Policy section 19.b.i, the phrase “The City Council hereby authorizes the City Manager City to maintain” should be replaced with “The City Council hereby authorizes the City Manager to maintain.” This correction will be made in the
published version of the Fiscal Policy after adoption of the update via resolution.
Item 5.I.
Budget Adoption
FY 2023/24 and FY 2024/25
June 20, 2023
City Council Regular Meeting
6/20/2023
Supplemental - Item 7.A.
From: City Staff
Changes Since 6/6 Public Hearing
•
Updates to Housing Funds
–
Per Division, moved internal service expenditure
budgets between funds and increased revenues in
some funds
•
Corrected CIP Budget
–
Council approved R2023
-
061 on 6/6/23, which added
$850,000 to the Silverado
-
Third
-
Coombsville
-
East (5
-
Way) Intersection Project ST14PW04 in FY23. This
funding had been included in the FY 2023/24
proposed budget and has been removed for the
adopted budget.
FY 2023/24 Expenditures
All Funds
-
$323.3 million
General Funds
39%
Special Revenue Funds
8%
Capital Projects Funds
10%
Solid Waste & Recycling
Funds
15%
Water Funds
17%
Internal Service Funds
5%
Housing Authority Funds
6%
General Fund
R
evenues and Expenditures
50 60
70 80
90 100
110
120
130
140
2020/21 Actual
2021/22 Actual
2022/23 Adjusted
2023/24 Proposed
2024/25 Proposed
Millions
Expenditures
Operating Revenues
Non-Operating Revenues
General Fund Revenues
-
20 40
60 80
100
120
140
2022/23 Amended
2023/24 Proposed
2024/25 Proposed
Millions
Property Tax
VLF
Sales Tax
Transient Occup Tax
Business License Tax
Charges for Services
Other Revenues
Transfers In
Excess ERAF
General Fund Expenditures
-
20 40
60 80
100
120
140
2022/23 Amended
2023/24 Proposed
2024/25 Proposed
Millions
Payroll & CalPERS
Services - External
Services - Internal
Materials & Supplies & Capital Outlay
Transfers Out
Transfers to Reserves
General Fund
Fund Balance / Reserves
(10)
(5)
-
5 10
15 20
25 30
35 2021/22 Actual
22/23 Adjusted
2023/24 Proposed
2024/25 Proposed
Millions
Chart Title
Unassigned Fund Balance
Emergency Reserve
Operating Reserve
Contingency Reserve
Legally Restricted
Proposed CIP by Category
0 1
2 3
4 5
6 7
8 9
10 11
12 Bridge
Facilities
Materials Diversion
Misc
Park
Public Art
Storm Drain
Streets, Traffic Safety, Multi-Modal
Traffic Signal
Water
Millions
2023/24 Proposed
2024/25 Proposed
Conclusion
Council Questions or
Comments?
Recommended Action:
1. Move to adopt the Fiscal
Years 2023/24 and
2024/25 Budgets
2. Move to adopt citywide
position staffing plan
End of Presentation
SUPPLEMENTAL REPORTS & COMMUNICATIONS
Office of the City Clerk
City Council of the City of Napa
Regular Meeting
June 20, 2023
FOR THE CITY COUNCIL OF THE CITY OF NAPA
EVENING SESSION:
SUBMITTED DURING THE CITY COUNCIL MEETING
4. PUBLIC COMMENT:
1) Leaf Blower Rebate Program handout received on June 20, 2023.