955 School Street
Napa, CA 94559
www.cityofnapa.org
3:30 PM
City Hall Council Chambers
Tuesday, February 20, 2024
3:30 PM Afternoon Session
6:30 PM Evening Session
3:30 P.M. AFTERNOON SESSION
1. CALL TO ORDER: 3:30 P.M.
1.A. Roll Call:
Councilmember Alessio, Councilmember Luros, Councilmember Painter, Vice Mayor Narvaez, and Mayor Sedgley
Present:
5 -
2. AGENDA REVIEW AND SUPPLEMENTAL REPORTS:
Prior to the announcement of the supplemental documents, Deborah Elliott, Management Analyst, introduced Justine Bessette-Denwood and Kayle Chavez, two California Climate Action Corps Fellows who have joined the City Manager's office.
Following their introductions, City Clerk Carranza announced the following supplemental documents:
For Items 5.A., 5.B, 5.C, and 5.D. - PowerPoint presentations from City staff.
(Copies of all supplemental documents are included in Attachment 1)
3. PUBLIC COMMENT:
Jim Hinton - provided comments regarding public art. He also provided comments regarding a pending investigation in the County.
4. CONSENT CALENDAR:
CITY OF NAPA
Printed on 2/23/2024
CITY OF NAPA
MEETING MINUTES - Final
CITY COUNCIL OF THE CITY OF NAPA
Mayor Scott Sedgley
Vice Mayor Bernie Narvaez
Councilmember Liz Alessio
Councilmember Mary Luros
Couincilmember Beth Painter
February 20, 2024
CITY COUNCIL OF THE CITY OF
NAPA
Approval of the Consent Agenda
A motion was made by Councilmember Painter, seconded by Vice Mayor Narvaez, to approve the Consent Agenda. The motion carried by the following vote:
Aye:
Alessio, Luros, Painter, Narvaez, and Sedgley
5 -
4.A.
054-2024
City Council Meeting Minutes
Approved the minutes from the February 6, 2024 Regular Meeting of the City Council.
4.B.
051-2024
Senior Advisory Commission Membership
Re-appointed incumbent Ellyn C. Elson, and new member, Tom M. Woolf, to the Senior Advisory Commission for terms effective immediately and ending on September 30, 2025.
4.C.
045-2024
Napa County Library Commission Membership
Appointed new member, Linda Nellet, as a City of Napa Representative to the Napa County Library Commission for a term effective immediately and ending January 31, 2027.
4.D.
038-2024
Sheehy Court 36-inch Water Main Replacement
Adopted Resolution R2024-013: (1) authorizing the Utilities Director to approve change orders to the agreement with Azul Works, Inc. and charges for project services in an additional amount of $122,000 for a total project amount not to exceed $1,687,500 for the Sheehy Court 36-Inch Main Replacement Project and (2) approving a budget appropriation in the amount of $122,000 from Water CIP Fund Balance Account 531-35999 to Sheehy Ct NVTA 36-inch Main Replacement account 53160139-63WT20UT01 as documented in Budget Adjustment No.172; and (3) determining that the actions authorized by this resolution are exempt from CEQA.
Enactment No: R2024-013
4.E.
040-2024
Treasurer’s Quarterly Investment Report on the City’s Investment Portfolio for the Quarter Ended December 31, 2023
Received the Treasurer’s Quarterly Investment Report on the City’s investment portfolio for the period ending December 31, 2023.
CITY OF NAPA
Printed on 2/23/2024
MEETING MINUTES - Final
February 20, 2024
CITY COUNCIL OF THE CITY OF
NAPA
4.F.
041-2024
Mentis Office Building, 709 Franklin Street
Authorized the City Manager on behalf of the City to take the necessary actions to release the following documents from title to real property owned by Mentis (formerly Family Services of the North Bay and Family Service of Napa Valley) at 709 Franklin Street in connection with Mentis’ sale of the property:
1. A Restrictive Covenant and Right of First Refusal Agreement, dated July 22, 2013, executed by Family Service of the North Bay, a California nonprofit public benefit corporation, in favor of The Peter A. and Vernice H. Gasser Foundation, a California nonprofit public benefit corporation, recorded July 26, 2013; and
2. A Quality Improvement and Repair Grant Agreement between the City and Family Service of Napa Valley recorded on April 5, 2006 in the amount of $10,910.
4.G.
048-2024
Milliken Treatment Plant Upgrade Design
Authorized the Utilities Director to negotiate and execute an agreement with Carollo Engineers, Inc. for the Milliken Treatment Plant Upgrade Design in an amount not to exceed $389,125.
5. ADMINISTRATIVE REPORTS:
5.A.
024-2024
Napa Golf Course Update
(See supplemental document in Attachment 1)
Katrina Gregory, Recreation and Public Art Manager, introduced Michael Sharp, CourseCo President and CEO, joined by Bob Becker, General Manager, and Sean Silva, Sr. Operation/Regional Manager, provided the staff report.
Mayor called for public comment.
Jim Hinton - provided comments regarding the quality of the course.
Discussion was turned over to Council. CourseCo. staff responded to various individual comments and questions from members of Council.
CITY OF NAPA
Printed on 2/23/2024
MEETING MINUTES - Final
February 20, 2024
CITY COUNCIL OF THE CITY OF
NAPA
5.B.
478-2023
2024 Fourth of July Event Update
(See supplemental document in Attachment 1)
Katrina Gregory, Recreation and Public Art Manager, provided the staff report.
Mayor Sedgley called for public comment; there were no requests to speak.
Discussion was turned over to Council; individual comments and questions ensued.
5.C.
050-2024
Council Spotlight: Housing Division Built Environment Programs (See supplemental document in Attachment 1)
Deputy City Manager Molly Rattigan introduced Hernando Guillem, Housing Manager, who provided the report.
Mayor Sedgley called for public comment; there were no requests to speak.
Discussion was turned over to Council; individual comments and questions ensued.
Mayor Sedgley called for a break at 5:04 P.M.
The Meeting reconvened at 5:09 P.M.
CITY OF NAPA
Printed on 2/23/2024
MEETING MINUTES - Final
February 20, 2024
CITY COUNCIL OF THE CITY OF
NAPA
5.D.
002-2024
Annual Comprehensive Financial Report and Other Audit Reports for Fiscal Year Ended June 30, 2023.
(See supplemental document in Attachment 1)
Finance Director, Raj Prasad, and Budget Officer, Seth Anderson, provided the report.
Mayor Sedgley called for public comment.
Pat Burrows, Napa City Firefighters Association - thanked Council and staff for discussions to restore Engine 1. Appreciated open communication and transparency throughout discussions; looked forward to continued conversations.
Discussion was turned over to Council. Individual comments and questions ensued regarding proposed recommended allocations.
A motion was made by Vice Mayor Narvaez, seconded by Councilmember Luros, to:
1. Receive the City's Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023; and
2. Provide direction to staff to return to a future Council meeting regarding the allocation of the available General Fund unassigned fund balance as outlined and recommended in staff's presentation. The motion carried by the following vote:
Aye:
Alessio, Luros, Painter, Narvaez, and Sedgley
5 -
6. COMMENTS BY COUNCIL OR CITY MANAGER:
Vice Mayor Narvaez reminded folks to use the service center to report pot holes.
Councilmember Painter shared that at the last MCE (Marin Clean Energy) meeting she presented Chris Benz of Napa Climate Now! with the Charles McGlashan Advocacy award.
CITY COUNCIL RECESS: 5:47 P.M.
6:30 P.M. EVENING SESSION
7. CALL TO ORDER: 6:32 P.M.
7.A. Roll Call:
Councilmember Alessio, Councilmember Luros, Councilmember Painter, Vice Mayor Narvaez, and Mayor Sedgley
Present:
5 -
CITY OF NAPA
Printed on 2/23/2024
MEETING MINUTES - Final
February 20, 2024
CITY COUNCIL OF THE CITY OF
NAPA
8. PLEDGE OF ALLEGIANCE:
9. AGENDA REVIEW AND SUPPLEMENTAL REPORTS:
City Clerk Carranza announced the following supplemental document:
Item 12.A. - PowerPoint presentation from City staff.
(a copy of the supplemental document is included in Attachment 2)
10. SPECIAL PRESENTATIONS:
10.A.
046-2024
Black History Month Proclamation
Mayor Sedgley and members of Council read the proclamation. JT Thompson, People B4 Policy, accepted the proclamation and provided remarks.
11. PUBLIC COMMENT:
Lori Donovan - shared that the outpatient lab at the Queen of the Valley Hospital would be closing and shared various concerns with the closure and its impact on City residents.
12. ADMINISTRATIVE REPORTS:
12.A.
049-2024
2024 Long-Term Financial Forecast
(See supplemental document in Attachment 2)
City Manager Potter introduced the item.
Finance Director Raj Prasad, and Budget Officer Seth Anderson, provided the report.
Mayor Sedgley called for public comment; there were no requests to speak.
Discussion was turned over to Council. Individual Council comments and questions ensued.
CITY OF NAPA
Printed on 2/23/2024
MEETING MINUTES - Final
February 20, 2024
CITY COUNCIL OF THE CITY OF
NAPA
13. COMMENTS BY COUNCIL OR CITY MANAGER:
Councilmember Alessio shared that she met with the Regional Government Relations person for Northern California Providence and shared concerns regarding the closure of the outpatient lab. Asked if it would be appropriate for the City to express concern on behalf of the residents. Suggested outreach to Senator Dodd and Assemblymember Aguiar-Curry.
She also shared that the Napa County Historical Society was holding a sold out event "Brand New Shoes," a play by Tia Madison the next evening.
14. ADJOURNMENT: 7:18 P.M.
The next regularly scheduled meeting for the City Council of the City of Napa is March 5, 2024.
Submitted by:
_______________________________
Tiffany Carranza, City Clerk
CITY OF NAPA
Printed on 2/23/2024
MEETING MINUTES - Final
ATTACHMENT 1
SUPPLEMENTAL REPORTS &
COMMUNICATIONS Office of the City Clerk
City Council of the City of Napa
Regular Meeting
February 20, 2024
FOR THE CITY COUNCIL OF THE CITY OF NAPA
AFTERNOON SESSION:
SUBMITTED PRIOR TO THE CITY COUNCIL MEETING
5. ADMINISTRATIVE REPORTS:
5.A. Napa Golf Course Update
• PowerPoint Presentation from Staff
5.B. 2024 Fourth of July Event Update
• PowerPoint Presentation from Staff
5.C. Council Spotlight: Housing Division Built Environment Programs • PowerPoint Presentation from Staff
5.D. Annual Comprehensive Financial Report and Other Audit Reports for FY June 30, 2023
• PowerPoint Presentation from Staff
Na
pa City
Council Meeting
F
ebruary 20th,
2024
City Council Regular Meeting
2/20/2024
Supplemental - Item 5.A.
From: Staff
CourseCo Golf
Management
CourseCo Core Values
Financial
Performance
Community
Inclusion
Stakeholder
Communication
Environmental
Stewardship
History of CourseCo and the City of Napa Partnership
Partnership commenced in 1999
Management Contract from 1999-2013
1999
May 2013
(City of Napa & CourseCo agree to 20-year lease)
• Progressively escalating rent structure establishes the following:
• CourseCo assumes future financial risk
• CourseCo to provide capital infusion
CourseCo Notifies City of Napa Intent to Exercise the First of Two 5 yr. Lease Extensions – Commences on May 15th, 2023
July 2022
5-Year Rounds Performance
5-Year Revenue Performance
Continued Investment in the Property
10-Years of Capital Projects Fulfilled Exceeding $1,250,000 F&B Banquet Pavilion
Kennedy Taphouse Remodel
Outdoor Cocktail Reception Site
Dead Tree Removal & Replacement
Banquet Equipment Storage Sheds Installation
Maintenance Equipment
Mowers (Greens, Fairway & Rough)
Utility Vehicles
SandPro
Topdresser
Course Infrastructure Improvements
Greenside Bunker Renovations
Fairway Irrigation Head Replacements
Course Drainage
Native Area Cleaning
Cart Path Repair & Installation
Building Equipment Replacement
Pub/Grill HVAC Replacement
Kitchen Plumbing
Range Ball Machine Dispenser
Banquet/Event Center
Capacity: 220 guests
Ceremony: Garden site
Reception: Outdoor pavilion
Views: Rolling hills, lakes, old-growth oak
trees, golf course
Location: Convenient to Highway 29
Environment: State-of-the-art,
reception pavilion
Addition of Outdoor Cocktail Reception Site
Capacity: Approximately 125 guests
Investing in Revenue Growth with a Grill Remodel
Capacity: Approximately 32 guests
2023 Fulfilled Capital Projects
Continued Investment in the
Property
Project # Project Name Scope of Project Estimated Cost
1 Tree Removal Remove dying trees prioritized by safety risk $15,000 2 Fairway Sprinkler Upgrades Replace old impact sprinklers in fairways with new models for improved operation and distribution uniformity. 213 needed total. 76 to be used in 2023 to replace all fairway heads on 5,7, 11. 56 sprinklers in 2024 (#3, 13, 15, 16). 91 sprinklers in 2025 (#9, 12, 14)
$19,000
3 Banquet / Event Space Roof Replacement Fairview wedding space roof panel replacement. 5 panels (10'7" by 4.5m) , Sidewall Panels 5 panels (10'7" x 4.5m. Additional Shipping/Install cost. 10% - 20% price increase expected 2023. $38,000
CourseCo – Investing in
Tree Trimming, Shaping
and Removal
CourseCo – Investing in
Fairway Sprinkler
Upgrades
CourseCo –
Investing in
Banquet Event
Space Roof
Replacement
2024 Planned Capital Projects
Continued Investment in the
Property
Project # Project Name Scope of Project Estimated Cost
1 Tree Removal Remove dying trees prioritized by safety risk $10,000 2 Fairway Sprinkler Upgrades Replace old impact sprinklers in fairways with new models for improved operation and distribution uniformity. 147 still needed in total. 56 sprinklers in 2024 (#3, 13, 15, 16). 91 sprinklers in 2025 (#9, 12, 14) $14,000
3 Driving Range Improvements Phase 1 of 2. 2024 earmarked to new synthetic turf tee surface via "Turfhound" product. Phase 2 earmarked for 2025 for replace and install new netting & pole & baseboard (poles ranging from 20'-30' in length. $30,690
4 Fairway #3 Drainage / Flooding Mitigation
Project
Install approximately 240 linear feet of sub surface drainage coupled with surface "grading" within the 100-125yd distance from front of #3 green. $19,000
Affordable
Golf &
Programs to
Keep Players
Coming Back
Community Inclusion/Engagement:
Serving the Residents of Napa Through All-Inclusive Fun & Engaging Events for the Entire Community
Environmental Excellence
Our Sustainable Mission:
To enrich and enhance the lives of our customers, community and guests by providing a fun and enjoyable golf experience, while maintaining responsible environmentally-conscious business practices and stewardship through:
Customer and guest engagement/education
Efficient resource procurement and use (water & energy) Sustainable management practices
Responsible sourcing
Minimizing carbon footprint output
3-Year
Certification
Renewal On-Track
for March 2024
Questions?
Fourth of July
Event Update
City Council
February 20, 2024
City Council Regular Meeting
2/20/2024
Supplemental -
Item 5.B.
From: Staff
Background
• City Council provided direction to staff at the October 17, 2023 meeting regarding the options for activities and the associated considerations for the upcoming 2024 Fourth of July event. • This direction to staff included:
– Discontinuation of fireworks
– Continuation of the City’s support of the Sunrise Rotary July 4th Parade with co-sponsorship of city staff costs to help with street closures and parade safety
– Discontinuation of patriotic décor in downtown if necessary to control event costs
– Retain the Community Celebration at Oxbow Commons if
funding allows for both an evening celebration as well as daytime family-friendly activities
• Providing an update on these planning efforts and event plan for 2024
Sunrise Rotary July 4th Parade
No changes: City staff will continue to provide in-kind support for the Sunrise Rotary July 4th Parade.
Community Celebration at
Oxbow Commons
• Similar format as 2023 which had
8,000 attendees
• Kids Zone from 3-8pm
• Food trucks
• Free Bike Valet
• Main Stage Musical Performances
from 3-9:30pm
• Salute to USA at 8:15-8:30pm
• Viewing area & broadcasted music
for Drone Show
Patriotic Décor
Uncertain if funding will be available to proceed
with the patriotic décor this year and likely placed
on pause for 2024
• July 4
th banners on the antique light poles
• Decorations at Veterans Park
• Decoration on 1 st & 3rd bridges
Drone Display
• Selected Vendor: Sky Elements
• 400 Drones
• 3-D Experience
• 12-14 animations
• Viewing Areas
• Audio available at Oxbow Commons or by phone
• Timeframe: 9:30-9:45pm
7 Drone Display - Site Plan
Drone Viewing Areas
Drone Viewing Areas
Drone Viewing Areas
Drone Viewing Areas
13 Types of Drone Animations
Financial Impacts
• Overall total budget: $202,800
– FY2024 budget increased by $135,000 from the City
Manager’s contingency fund
– $192,800 for the community special event
– $10,000 to support the July 4th Parade
– $113,751 for Sky Elements agreement for the drone show – $85,500 for Community Celebration at Oxbow Commons
– Fourth of July event expenses are incurred in two fiscal years – Approximately 70% of the expenses used for deposits,
supplies, and marketing in the months leading up to the event and in the previous fiscal year of FY2024
– Approximately 30% of the expenses are incurred when the event takes place on July 4th and will be reflected in fiscal year FY2025
14
Questions
15
Hous
ing
Division
Built
Environment
Febr
uary 2024
City Council Regular Meeting
2/20/2024
Supplemental -
Item 5.C.
From: Staff
Housing Division Built
Environment Programs
• Hernando Guillem
Housing Rehab Program Supervisor
• Antonio Mejia
Housing Rehab Specialist
• Rudy Perez
Housing Specialist
Program Staff
Housing Division Built Environment Programs
•Owner-Occupied Rehabilitation Loan
•Emergency Home Repair Grant
•Rental Rehabilitation Loan
•Tenant Accessibility Emergency Repair Grant
Housing Rehabilitation Programs
•Conversion ADU
•Junior ADU
Junior Unit Initiative Programs
•Capital Improvement Programs for Non-Profit
•Housing Quality Standards Compliance
•Labor Compliance
Others
Housing
Rehab
Programs
• Funded with CDBG, HOME and
C
alHome Funds
• Primary purpose = conserve and
i
mprove the supply of housing
affordable to low-income
households
• Other benefits include
• 0% deferred loan up to 30 years
• Grants
• Technical assistance
• Approval not based on credit score
Focus of Program:
Provide below market rate loans and grants
Housing Rehab Loans
Conserve, improve, and create
housing affordable to low-
income households
Emergency Grants
Emergency repairs to alleviate
health and safety issues while
processing the loan
Benefits and
Restrictions
For Homeowners
• Up to $75K deferred loan
• 0% interest loans of up to $75K
• No monthly payments (loans due in 20 or 30
years)
• Owner must occupy the residence
• Owner must be income qualified
• Up to $5K grant for ADA improvements
• Up to $5K grant for Emergency
Home Repairs
For Landlords and Tenants
• Up to $75K 0% deferred loan
• No monthly payments (loan due in 20
years
• Tenant must be income qualified
• Affordability restriction for 10 or 20
years
• Up to $5K grant for ADA improvements
• Up to $5K grant for Tenant Accessibility
Emergency repairs
City of
Napa
Junior
Unit
Initiative
Program
• Program created by City
• Included lots of “carrots”
• Funded with PLHA Funds
• Primary purpose = expand rental
ho
using stock
• Other benefits include
• Source of income for homeowners
• Increase social connections
• Allows community to be part of
h
ousing solution
Focus of Program:
Cost efficient ADUs
Junior Units
Carved out of existing room in house
Provides private bathroom or access
to shared bathroom
Separate entrance
Conversion ADUs
Converts accessory structure into
ADU
Most popular = garage conversion
Financing
Structure
for Junior
Initiative
Program
• Up to $75K forgivable loan
• 0% interest
• Forgiven at 5% per year if renting out
uni
t
• Fully forgiven after 20 years
• Due in one year if decide to stop
p
articipation
• Up to additional $25K 0% deferred
l
oan for Converted ADU
• Up to $5K grant for ADA improvements
• Up to $4K grant if design services
ne
eded
• Up to $3K grant if engineering
s
ervices needed
Program
Requirements
• Property eligibility criteria:
• Located within Napa city
limits
• Single family home
• Owner occupied
• Must create a junior unit or unit
in existing accessory structure
• Includes garage conversion
• Must create a rental unit
• Either primary or junior
unit/ADU
• Rented to non-family
member
To Date
Program Services Include
• Marketing
• Loan approval
• Environmental Review
• Design Services (for Junior Unit Programs only)
• Bid Administration
– Property needs assessment
– Develop scope of work and specifications
– Bidding process
• Contract Administration
– Compliance monitoring
• Construction management
– Overseeing construction
– Process Change orders
– Process payment
– Completion
• Loan closeout and servicing
• Housing Rehab Program Administration for
– City of American Canyon, St. Helena, and Calistoga
– Town of Yountville
Conversion ADU (Before)
Conversion ADU (After)
Conversion ADU (Garage - Before)
Conversion ADU (Garage - After)
Completed Junior
Unit
Another Completed Junior Unit
A
nnual
Comprehensive
Financial Report
(ACFR)
FY 2022/23
City Council Regular Meeting
2/20/2024
Supplemental -
Item 5.D.
From: Staff
PURPOSE
• Present Council & Community on the
Fina
ncial Status (Audited) of the City as
of June 30, 2023
• Council to receive the Ann ual
Comprehensive Financial Report for
Fiscal Year Ending June 30, 2023
• Council provide direction to staff on
all
ocation of the available General Fund
unassigned fund balance
2 ATTACHMENT 4
AUDIT & AUDITORS OPINION
• Audit for Fiscal Year Ended June 30,
2023
completed by The Pun Group
• Fifth and final year of their agreement
• Auditors Opinion: Unmodified (clean)
3 ATTACHMENT 4
GFOA AWARD
Certificate of Achievement for Excellence
in Financial Reporting:
• Received the award for nine
cons
ecutive years
• Submitted for FYE 2023
4 ATTACHMENT 4
FY 2022/23 AUDITED
FINANCIAL STATUS REPORT
5 ATTACHMENT 4
GENERAL FUND
6 ATTACHMENT 4
FY 2022/23 General Fund
Revenue
Budget Actual YTD %
Property Tax 40.99 42. 93 104.7%
Sales Tax 22.21 22.58 101.6%
Transient Occupancy Tax 31.03 30.88 99.5% Business License Tax 3.73 4.62 123.9% Charges for Services 6.15 5.76 93.7% Licenses and Permits 2.49 3.00 120.4% Other Operating Revenues 7.34 15.35 209.2% Non-Operating Revenues 2.00 2.00 100.0% Total Operating Revenue 115.93 127.12 109.6% 7 ATTACHMENT 4
FY 2022/23 General Fund
Expenditures
Budget Actual YTD %
Salaries & Wages & Benefits 81.85 78. 38 95.8% Materials & Supplies & Services 29.02 26.22 90.4% Other Expenditures (Includes
Transfers to Reserves) 5.10 4.86 95.3 % Total Operating Expenditures 115.97 109.46 94.4% 8 ATTACHMENT 4
FY 2022/23 Reserves
• Operating Reserve: $5.54 million
– Target: 5% of operating expenditures
• Emergency Reserve: $15.52 million
– Target: 14% of operating expenditures
• Contingency Reserve: $1.11 million
– Target: 1% of operating expenditures
9 ATTACHMENT 4
CASH AND INVESTMENTS
10 ATTACHMENT 4
General Fund
11 Cash & Investments $28,917,964
ATTACHMENT 4
AMERICAN RESCUE PLAN ACT
(ARPA) FUNDS
12 ATTACHMENT 4
ARPA Funds
13 Total
Received
Total
Obligations
Total
Expenditures Unexpended
$15,118,910 $15,118,910 $2,503,383 $12,615,527
ATTACHMENT 4
CIP PROJECT FUND
14 ATTACHMENT 4
FY 2022/23 CIP Reserves
• CIP Facilities Reserve
– $6.85 million ending balance for current and
futur
e projects
– Per Fiscal Policy, will also receive end of year
avail
able fund balance from General Fund and
Non-Recurring General Fund
• CIP General Reserve
– $3.73 million ending balance for current and
futur
e projects
15 ATTACHMENT 4
PENSION & POST-
EMPLOYMENT BENEFITS FUND
16 ATTACHMENT 4
Section 115 Trust
• Created to help mitigate increases in
futur
e pension costs
• Balance at 6/30/23: $5.0 million
• Planned usage in FY24 to offset UAL
Paym
ent
17 $0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
Annual CalPERS UAL Payments, in millions
Misc Safety
ATTACHMENT 4
PENSION & OTHER POST
EMPLOYMENT BENEFITS
(OPEB) LIABILITIES
18 ATTACHMENT 4
Pension & OPEB
19 Net Pension
Liability Governmental Business-Type Total
CalPERS Misc. 89,604,121 20,601,073 $110,205,194
CalPERS Safety 106,613,209 0 106,613,209
Total: $196,217,330 $20,601,073 $216,818,403
Net OPEB Liability $5,230,603
ATTACHMENT 4
ENTERPRISE FUNDS
20 ATTACHMENT 4
Enterprise Funds – Solid Waste
21 Solid Waste & Recycling Budget Actual YTD %
Operating Revenues 43.79 43.96 100.4%
Operating Expenditures 47.26 46.14 97.6%
Operating Surplus / (Deficit) (3.48) (2.17)
Non-Recurring/Capital Revenues 3.88 3.90 100.6%
Non-Recurring/Capital Expenditures 3.93 1.71 43.5%
Transfer to Street Resurfacing 1.15 1.15 100.0%
Debt Service Expenditures 0.87 0.29 32.9%
Net Change in Fund Balance (5.55) (1.41)
ATTACHMENT 4
Enterprise Funds – Water
22 Water Budget Actual YTD %
Operating Revenues 35.80 33.74 94.3%
Operating Expenditures 33.58 32.69 97.4%
Operating Surplus / (Deficit) 2.22 1.05
Non-Recurring/Capital Revenues 2.45 1.59 64.9%
Non-Recurring/Capital Expenditures 18.69 2.02 10.8%
Disaster Project Revenues 6.92 3.19 46.1%
Disaster Project Expenditures 9.70 0.31 3.2%
Debt Service Expenditures 3.33 1.22 36.5%
Interfund Transfer Revenue 5.09 26.84 n/a
Interfund Transfer Expense 5.09 26.84 n/a
Net Change in Fund Balance (20.13) 2.28
ATTACHMENT 4
OPERATING POSITION:
GENERAL FUND &
NON-RECURRING GENERAL FUND
23 ATTACHMENT 4
FY 2022/23 General Fund
Operating Position
24 FY
2022/23
Budget
FY
2022/23
Actual
General Fund ($ in millions)
Total Revenues 115.9 127.1
- Operating Expenditures 116.0 109.5
- Contributions to General Fund Reserves - 0.9 Operating Surplus/ Deficit (0.0) 16.8
- Mark-to-Market Adjustment - 9.6
- Encumbrances - 0.9
Available Fund Balance (0.0) 6.3
ATTACHMENT 4
FY 2022/23 NR General Fund
Operating Position
25 FY 2022/23
Budget
FY
2022/23
Actual
Non-Recurring General Fund ($ in millions)
Beginning Fund Balance 6.5 6.5
Revenues 10.3 6.1
Expenditures 12.5 6.1
Ending Fund Balance 4.3 6.5
ATTACHMENT 4
Recommendations
• Project Funding
– $0.25M to CIP Project 33PA22PR03
• Public Art In Parks – Fuller Park
• PERS UAL
– $3M to Section 115 Trust
• Labor Costs
– $0.3M for costs associated with restoring
Engine 1
(3 x Fire Captains)
• Downtown Specific Plan
– $0.1M
26 ATTACHMENT 4
Recommendations
• Fleet Replacement Reserve
– $0.25M
• Fire Apparatus Replacement Reserve
– $0.25M
• CIP General Reserve
– $0.5M
• CIP Facilities Reserve
– Remaining $1.8M (approx.) per fiscal policy
27 ATTACHMENT 4
Questions and Comments
28 ATTACHMENT 4
Recommendation to Council
• Receive the Annual Comprehensive
Finan
cial Statement for the Year Ending
June 30, 2023
• Provide Direction to staff to return to a
future
Council meeting regarding the
allocation of the available General Fund
unassigned fund balance
29 ATTACHMENT 4
Annual
Comprehensive
Financial Report
(ACFR)
FY 2022/23
ATTACHMENT 4
ATTACHMENT 2
SUPPLEMENTAL REPORTS & COMMUNICATIONS
I Office of the City Clerk
City Council of the City of Napa
Regular Meeting
February 20, 2024
FOR THE CITY COUNCIL OF THE CITY OF NAPA:
EVENING SESSION:
12. ADMINISTRATIVE REPORTS:
12.A. 2024 Long-Term Financial Forecast
• PowerPoint Presentation by City Staff.
L
ong-Term
Financial
Forecast
Fe
bruary 20, 2024
City Council Regular Meeting
2/20/2024
Supplemental -
Item 12.A.
From: Staff
Roadmap
• Introduction
• Big Picture
• Historical
Co
mparison
• Preliminary Long-
Term Findings
– Key Assumptions
– Results
The Big Picture
• Revenue recovery growth rate beginning
to plateau
• Expenditures have continued to increase
and are projected to be higher than
revenues in future years
– Inflation
– Labor & Pension Costs
– Self-Funded Insurances
General Fund Financial Status
Operating Revenue only shown; does not include one-time revenues used to balance the General Fund in FY20 through FY25
FY25 Budgeted Revenue: $125.4 M
50 60
70 80
90 100
110
120
130
140
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Budget
Millions
Operating Revenue Expenditures
Financial Status: FY 2023/24
• Sales Tax and Transient Occupancy Tax
have recovered and continue to grow at a
moderate rate
• Inflation and labor costs are rising
• One-Time dollars have been used since
FY20 to balance the General Fund
budget
• General Fund Reserves are still fully
funded
Long-Term Financial Forecast
• Components
– Financial Trend Analysis – 5 Year (4 history +
current)
• Rapid growth out of last recession can skew
analysis of current trends
– Financial Forecast – 5 Years Forward
• Economic Assumptions
• Collaborative efforts with staff, professionals &
consultants
• Anticipated Development
Historical Revenue
• Property Tax: average annual increase of 7.2% from FY14 – FY23 • Sales Tax: average annual increase of 4.5% from FY14 – FY23 • TOT: average annual increase of 8.2% from FY14 – FY23 • Timeframe includes 4 new hotels and 1 hotel expansion
42.7 22.6
30.9 0
5 10
15 20
25 30
35 40
45 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Millions
Primary Revenue Sources
Property Tax Sales Tax
Transient Occupancy Tax
The Forecast….
The Forecast….
• Is a model that shows us what MIGHT
happen in the future
• Revenue estimates based on our current
best guess of economic outlook
• Expenditure estimates based on historical
growth rates what happens if we keep
doing what we’ve been doing
– Actuarial data – UAL
The Forecast….
• A set of reasonable, most likely assumptions
about future revenues and expenditures based
on current budget/trends
• Changes to assumptions Changes in the
forecast
• GFOA best practice for fiscal management
• Planning Tool
– Allows us to model future impacts of current budget
decisions
– Allows us to see surplus/deficit trends over time
– Assists us with making changes needed to avoid future deficits
The Forecast….
• Is not a budget – Council has final authority to
establish the budget and amend it as needed
• Is not a labor relations plan – Collective
bargaining is a separate process from
forecasting; assumptions in the forecast are for
modeling purposes only
• Is not a set of promises – COLA increase
assumptions, operating budget growth
assumptions, etc. are for modeling purposes only
• Is not set in stone – Assumptions are changed
over time in response to a variety of factors and
trends
Forecast….
• What’s Included
– Economic Assumptions
– Major Development Currently Underway plus
Anticipated Growth
– Transfers Based on Current Fiscal Policy
• What’s Not Included
– ARPA Funding
– New Positions
– Funding for Current Unfunded Needs
– New or Enhanced Programs/Services
Forecast Assumptions
Annual Revenue Growth Rates
• Property Tax: 4.0% throughout forecast
• Sales Tax: 3.3% average annual growth
• Transient Occupancy Tax
– 2.5% average annual growth for existing
development
– Estimated projected new development
Property, Sales & TOT Revenue
52.2 26.6
37.9 0
10 20
30 40
50 60
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Primary Revenue Sources
Property Tax Sales Tax Transient Occupancy Tax
Revenue Forecast
89.3 86.7
101.9
117.6 120.1 125.3 129.8 133.7 137.9 142.3
0 20
40 60
80 100
120
140
160
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Property Tax Transient Occupancy Tax (TOT)
Sales Tax Other Revenues
Transfers In
Forecast Assumptions
Annual Expenditure Growth Rates
• Based on historical trends, core City services
• Staffing: No new positions beyond FY25 budget
• Salaries & Wages: 4.4% combined rate for
COLA and step increases
• 3.8% annual increase in healthcare/dental costs
• 2.7% average annual increase in CalPERS
normal costs (payroll)
• CalPERS UAL schedule reflects rising annual
costs, peaking in FY30 at $19.6M (GF)
Projected CalPERS Costs
General Fund Only
13.4 14.1
17.2 17.1
19.1 20.3
21.7 22.8
23.8 25.7
0 5
10 15
20 25
30 FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Normal Cost UAL
Projected CalPERS UAL
Prepayments - GF
5.4 6.2 6.6 7.0 7.3 7.9 8.1
8.0 8.5
9.2 9.8 10.3
11.2 11.5
0 5
10 15
20 25
FY24 FY25 FY26 FY27 FY28 FY29 FY30
Millions
GF Misc Prepayment Safety Prepayment
Projected CalPERS UAL
-
5 10
15 20
25 30
CalPERS UAL Projection; All City Funds
264 - Miscellaneous Plan 265 - Safety Plan
Forecast Assumptions
Annual Expenditure Growth Rates
• Semi-Discretionary
– Services & Supplies: 9.4%
• Utilities, Property Tax Administration Fees, Software Licenses, Payments to Other Agencies, etc.
– Internal Services: Fleet 4%, Risk 13.5%
• Discretionary
– Services & Supplies: 2.6%
• Professional Services, General Supplies,
Travel/Training, etc.
– Transfer to Sidewalks Program: $0.9
million/year
Forecast Assumptions
Annual Expenditure Growth Rates
• Transfers Out per Fiscal Policy
– CIP Facilities Reserve: 2% of Operating
Budget
– CIP General Fund Reserve: 1% of Operating
Budget, plus $0.10 million for the General Plan
– Equipment Replacement Reserve: $0.15
million/year
– General Fund Reserves: bring balances up to
equal 14% (Emergency), 5% (Operating), or
1% (Contingency) of Operating Budget
Expenditure Forecast
60.3 57.4
61.5 67.7
72.5 75.7 78.1 81.2
84.6 88.1
-
20 40
60 80
100
120
140
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Salaries & Benefits
Expenditure Forecast
9.3 10.2
11.7 12.4
13.3 14.7 15.8
16.8 17.6
19.2 -
20 40
60 80
100
120
140
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Salaries & Benefits PERS UAL
Expenditure Forecast
6.8 6.9
8.2 7.4
8.5 8.1
8.8 9.6
10.5 11.5
-
20 40
60 80
100
120
140
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Salaries & Benefits PERS UAL Semi-Discretionary Exp
Expenditure Forecast
7.4 5.8
6.9 10.0
11.7 12.5
12.8 13.1
13.5 13.8
-
20 40
60 80
100
120
140
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Salaries & Benefits PERS UAL Semi-Discretionary Exp Discretionary Exp
Expenditure Forecast
6.6 6.8
7.5 8.9
10.4 11.2
12.2 13.4
14.8 16.3
-
20 40
60 80
100
120
140
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Salaries & Benefits PERS UAL Semi-Discretionary Exp Discretionary Exp Internal Services
Expenditure Forecast
5.1 5.6
4.8 4.6
5.7 5.7
6.0 6.3
6.6 7.1
-
20 40
60 80
100
120
140
160
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Salaries & Benefits PERS UAL Semi-Discretionary Exp Discretionary Exp Internal Services Transfers Out
Expenditure Forecast
95.4 92.6
100.6
110.8
122.1
127.8
133.8
140.5 147.5
155.9
-
20 40
60 80
100
120
140
160
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Salaries & Benefits PERS UAL Semi-Discretionary Exp Discretionary Exp Internal Services Transfers Out
Revenues & Expenditures
97.2 92.2
105.4
119.9 122.3
127.8
132.3
136.2
140.4
144.8
-
20 40
60 80
100
120
140
160
180
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Revenues & Expenditures
97 92
105
120 122
128
132 136
140
145
95 93
101
111
122
128
134
140
147
156
-
20 40
60 80
100
120
140
160
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Budget
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Includes continued use of one-time revenues through FY29
Usage of General Fund Reserves
24.8 24.5
21.4 15.7
6.2 -
5 10
15 20
25 30
FY25
Proj
FY26
Proj
FY27
Proj
FY28
Proj
FY29
Proj
Millions
Projected General Fund Reserve Balances
• Revenues have recovered but are expected to
plateau in next few years
• Economic Uncertainty – VLF, ERAF & UAL
• Expenditures have grown at a rapid pace; if
growth continues at this rate City will experience
operating deficits and deplete all its GF reserves
• Reserves are sufficient to cover deficits for now,
but should be utilized only as a last resort
Summary
What’s Next?
• March: FY24 Mid-Year Report; will update
revenue budgets
• May/June: Mid-Cycle Budget presentation &
adoption for FY25
• October: FY24 End of Year & Updated LTFF
Report
• Going forward will continue to use the Forecast
and Mid-Year Report to evaluate revenue and
adjust budgets as needed if growth differs from
expectations.
Comments / Questions?
End of Presentation