ATTACHMENT 2
CITY OF NAPA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Prepared by:
Finance Department, City of Napa
2 ATTACHMENT 2
CITY OF NAPA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
INTRODUCTORY SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 City Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association . . . . 17 FINANCIAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Independent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Management’s Discussion and Analysis (Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Basic Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Government-Wide Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Government Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Balance Sheet - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position . . . . . . . 48 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds . . . . 49 Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities and Changes in Net Position . . . . . . . . . . . . . . 52 Proprietary Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Statement of Revenues, Expenses and Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Fiduciary Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Statement of Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Statement of Changes in Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Notes to The Basic Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Page
3 ATTACHMENT 2
Table of Contents
FINANCIAL SECTION (continued)
Page
Required Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund and Major Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Development Impact Fees Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 HOME Program Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Housing Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Measure T Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Schedules of Changes in the Net Pension Liability and Related Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Miscellaneous Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Safety Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Schedule of Changes in the Net OPEB Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 Schedules of Plan Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Nonmajor Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances . . . . . . . . . . . . . . . . . . 141 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Nonmajor Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Assessment District Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Tourism Improvement District Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 Community Development Block Grant Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 Traffic Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 Parking Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 CalHome Grant Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Public Safety Programs Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Parks and Recreation Trust Programs Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Public Infrastructure Program Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Business District Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Property and Business Improvement Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Damage Reimbursement Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Permanent Local Housing Allocation Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 Road Maintenance and Rehabilitation Act Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Gas Tax Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 Measure F Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Encampment Resolution Grant Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Golf Course Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Enhanced Infrastructure Financing District Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Departmental Special Revenue Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Capital Project Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
City Capital Projects Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 4 ATTACHMENT 2
Table of Contents
FINANCIAL SECTION (continued)
Supplementary Information (continued)
Page
Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 Combining Statement of Net Position - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds . . . . . . . . . . . . 172 Combining Statement of Cash Flows - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 STATISTICAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 Financial Trends Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Net Position by Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 Fund Balance of Government Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 Changes in Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 Revenue Capacity Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 Assessed Value and Estimated Actual Value of Taxable Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 Direct and Overlapping Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 Principal Property Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Property Tax Levies and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Debt Capacity Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 Ratios of Outstanding Debt by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 Direct and Overlapping Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Legal Debt Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 Pledged Revenue Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 Demographic and Economic Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 Demographic and Economic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 Principal Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 Full Time Equivalent City Government Employees by Function/Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Operating Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 Operating Indicators by Function/Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 Operating Indicators by Function/Program (Continued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 Capital Asset Statistics by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 5 ATTACHMENT 2
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6 ATTACHMENT 2
INTRODUCTORY SECTION
7 ATTACHMENT 2
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8 ATTACHMENT 2
Letter of Transmittal
December 10, 2025
To the Honorable Mayor, Members of the City Council and Citizens of the City of Napa:
California law requires that all general-purpose local governments publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America (GAAP) and audited by a firm of licensed certified public accountants in accordance with auditing standards generally accepted in the United States of America. Pursuant to that requirement, we are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Napa for the fiscal year ended June 30, 2025. The fiscal year covers financial transactions from July 1, 2024 to June 30, 2025 on a modified or full accrual basis, depending on the fund type.
City management assumes full responsibility for the completeness and reliability of all of the information presented in this report. The City has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and provides sufficiently reliable information that the City of Napa's financial statements are in conformity with GAAP. The cost of internal controls should not out- weigh their benefits and the internal controls are designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. City management asserts that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City of Napa’s financial statements have been audited by LSL, LLP, a licensed certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Napa, for the fiscal year ended June 30, 2025, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Napa’s financial statements for the fiscal year ended June 30, 2025 are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.
The independent audit of the financial statements of the City is part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance involving the administration of federal awards. The Single Audit report includes the Schedule of Expenditures of Federal Awards, Findings and Recommendations, and an auditors’ report on the internal control structure and compliance with applicable laws and regulations. This report is a separately issued Single Audit Report and is not included herein. 9 ATTACHMENT 2
Annual Comprehensive Financial Report (ACFR)
This ACFR contains financial information and data using the financial reporting format established for governments by the Governmental Accounting Standards Board (GASB). The GASB sets accounting and financial reporting standards for governments in the United States of America. The financial reporting standards require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.
Immediately following the report of the independent auditors’, you will find the City of Napa’s MD&A.
Profile of the City and its Operations
The City of Napa is located in the northern part of California, about 50 miles north of San Francisco and is the largest city in Napa County. California State Highway 29 runs through Napa, connecting it to Vallejo and the East Bay Area to the south and the Napa Wine Country to the north. California State Highway 12 runs to the south of the City, connecting it to Fairfield and Interstate 80 to the east and Sonoma and US-101 to the west. The Napa River traverses the City on its journey to the San Pablo Bay. The City of Napa currently occupies 18.1 square miles, 17.8 square miles of which is land and 0.3 square miles of which is water. The City serves a population of 79,246 residents and receives property taxes levied on real and personal property located within its boundaries.
Napa was founded in 1847 and incorporated in 1872. Napa is a charter city in the State of California. The City Charter was ratified by the voters in an election held on December 16, 1914, with an effective date of January 26, 1915. The City Charter may be amended only by a vote of the City's electorate.
The City operates under the Council-Manager form of government. Policy-making and legislative authority are vested in a City Council consisting of a Mayor elected at large and four Council members elected by district. All four Council members are elected to four-year overlapping terms. The Mayor, who sits on the Council, is elected directly by the residents, and serves a term of four years. The City Council is responsible for, among other duties, passing ordinances, adopting the budget, appointing committees, and hiring the City Manager, City Attorney and City Clerk. The City Manager serves as the administrative head of the City of Napa government and is responsible for carrying out the policies and ordinances of the City Council and all management functions of the City, including the budget, delivery of services, hiring all department directors and implementation of capital projects.
The City of Napa provides a wide range of municipal services including the following: police and fire protection; recreational activities; community and economic development; street improvement and maintenance services; parks maintenance; water; solid waste and recycling; general administrative and support services. 10 ATTACHMENT 2
Budget Information
The budget process is an ongoing cycle that serves as the foundation of the City of Napa’s financial planning and control. City Council meets at the beginning of the calendar year to set focus areas for the upcoming fiscal year.
Then City staff works to put together plans that match those focus areas, and then hold a Capital Improvement Program (CIP) Workshop and an Operating Budget Workshop in April for initial Council feedback. This is followed by public hearings in June to review and adopt the finalized budget. A new budget goes into effect on July 1.
The City typically follows a biennial budgeting process, which enhances efficiency by reducing the staff time required to prepare the budget in the second year and allows for long-term financial planning. Because the City’s Charter requires the Council to adopt a budget annually, the Council adopts the first year of the biennial budget and approves the budget plan for the second year at the same time. Council then adopts the second-year budget the following year. The City annually adopts the biennial appropriated budget for the General Fund, Development Fees Fund, HOME Program Fund, Housing Fund, Measure T Fund, and for all nonmajor special revenue funds (except for Public Infrastructure Program Fund, Opioid Settlement Fund, and Departmental Funds related to state and federal grants) and Capital Project Fund. The City also annually adopts the biennial appropriated budget for the proprietary funds. Budget comparison for these funds are not legally mandated and thus are not presented in these financial statements.
The budget is prepared by fund and by program within each department. Department managers may make transfers of appropriations within a department, except for personnel-related budgets, which require City Manager approval. Budget adjustments between funds or for CIP projects require City Council approval. The level of budgetary control, the level at which expenditures cannot legally exceed the appropriated amount, is established at the fund level. The budgets are adopted on a basis substantially consistent with generally accepted accounting principles (GAAP). Expenditures above the appropriated amount require approval by the City Council.
Local Economy and Outlook
The City of Napa benefits from a diverse revenue base. Property Taxes (35% of General Fund revenues in FY 2024/2025) remains a steady source of General Fund revenue and has estimated growth of 5.7% in FY 2025/26 and 3.7% in FY 2026/27. Transient Occupancy Taxes (TOT) (22% of General Fund revenues) had a strong rebound after the pandemic low of FY 2020/21 and began to plateau in FY 2023/24. Growth of TOT is estimated to be 0.9% higher next year, with additional growth of 2.0% in FY 2026/27. Sales Taxes (19% of General Fund revenues) is expected to grow in FY 2025/26 by 62.1% over current year due to the passing of Measure G (effective April 1, 2025), and an additional 2.9% in FY 2026/27. The top three sales tax generating industries in Napa continue to be restaurant and hotel, general consumer goods, and auto and transportation. The restaurant and hotel industry and auto and transportation showed the greatest increase in fiscal year 2025. Other revenues include permits, franchise fees, business license fees, charges for services, and various Public Safety grants (24 % of General Fund revenues).
The City is within a world-renowned wine region and has developed into a strong destination community.
Tourism in the Napa Valley continues to provide a strong foundation for Napa’s economy. As of the end of the fiscal year, there were 27 hotels/motels, 21 bed and breakfast establishments, 43 non-hosted and 27 hosted vacation rentals generating transient occupancy tax revenue within the City. 11 ATTACHMENT 2
Major Initiatives
Measure G
On June 4, 2024, the City Council unanimously voted to place Measure G on the November 5, 2024, general municipal election ballot. Measure G, approved by a majority of Napa voters, establishes a new local sales tax from 7.75% to 8.75% that is expected to generate an estimated $22 million annually to fund essential services and provide resources necessary to enhance road maintenance, repair sidewalks, revitalize parks, and support public safety and other critical services.
To maintain transparency and accountability, the City has appointed a five-member Measure G Oversight Committee that will play an essential role in reviewing expenditures and ensuring funds are allocated to initiatives that reflect the needs and priorities of Napa residents. The Oversight Committee will provide an extra layer of accountability, ensuring that every dollar of Measure G funding is spent wisely, in alignment with community priorities and contributes to building a stronger Napa for all of our residents.
City of Napa Joint Public Finance Authority
On August 5, 2025, City Council approved and authorized the City Manager to execute a Joint Exercise of Powers Agreement between the Industrial Development Authority and the City of Napa, establishing the City of Napa Joint Public Finance Authority and the City of Napa, establishing the City of Napa Joint Public Finance Authority under the Joint Powers Law. On August 13, 2025, City of Napa and the City of Napa Industrial Development Authority formed a joint powers authority under the provisions of Article 1 (commencing with Section 6500) of Chapter 5, Division 7, Tile 1 of the Government Code of the State of California (the “joint Powers Law”) for the purpose of creating a public agency which can provide financial assistance to the Industrial Development Authority and the City in connection with the construction of public capital improvements and other purposes specified in the Joint Powers Law.
Long-Term Financial Planning
The City updates a Long-Term Financial Forecast (LTFF) on an annual basis to provide a forward look at the City’s General Fund operating revenues and expenditures. Its purpose is to identify financial trends, shortfalls, opportunities, and issues so the City can proactively address them. It does so by projecting the future fiscal results of continuing the City’s current service levels and policies. The LTFF lays the foundation for the budget, aiding both the City Manager and City Council in establishing priorities and allocating resources appropriately.
The City has consistently planned its budget with a focus on long-term sustainability. This is accomplished through financial policies and the establishment of reserves. The City continues to maintain General Fund reserves at City Council's established fiscal policy level of 20% of the operating budget . Approximately $2.18 million of contributions were made in fiscal year 2025 to maintain compliance with fiscal policy. The Emergency Reserve balance ended the year at $18.16 million, the Operating Reserve at $6.49 million, and the Contingency Reserve at $1.30 million. Total reserves are $25.95 million or 20% of General Fund actual operating expenditures. In addition, the City maintains a CIP General Reserve and a CIP Facilities Reserve, which were both fully funded to fiscal policy levels in fiscal 2025. 12 ATTACHMENT 2
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Napa for its ACFR for the fiscal year ended June 30, 2024. The organization of the City’s ACFR follows the guidelines set forth by GFOA. This marks the eleventh consecutive year that the City has been recognized with this award.
The City must publish an easily readable and efficiently organized ACFR to be awarded a Certificate of Achievement. The report must satisfy both generally accepted accounting principles and applicable legal requirements. This ACFR also meets the program’s requirements, and staff will submit it to GFOA to determine its eligibility for the certificate.
The City of Napa received the GFOA Award for Outstanding Achievement in Popular Annual Financial Reporting (PAFR Award) for its Popular Annual Financial Report for the fiscal year ended June 30, 2024.
The City of Napa also received the GFOA Distinguished Budget Presentation Award for the fiscal year 2025-2027 budget. In addition to receiving this award, the City received special recognition for its long-range operating financial plans.
Acknowledgments
The preparation of this report would not have been possible without the hard work and dedication of the entire Finance Department. In addition, thanks to all City departments for their assistance in providing the data necessary to prepare this report. We would also like to express our appreciation to the Mayor and City Council for their unfailing support for maintaining the highest standards of professionalism in the financial management of the City of Napa.
Donna Lee, CPA, CIA Paul Phangureh, CPA, CIA, CGAP
Finance Director Deputy Finance Director
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Organizational Structure
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Principal Officials
ANNUAL COMPREHENSIVE FINANCIAL REPORT
June 30, 2025
Mission Statement
"Rooted in public service, our mission is to grow a vibrant, sustainable community for all who live in, work in and visit the City of Napa, through thoughtful leadership and dedication to excellence."
CITY COUNCIL
Scott Sedgley, Mayor
Bernie Narvaez, Vice-Mayor
Christopher DeNatale, Council Member
Mary Luros, Council Member
Beth Painter, Council Member
CITY STAFF
Steve Potter, City Manager
Christopher J. Diaz (Interim), City Attorney
Tiffany Carranza, City Clerk
Liz Habkirk, Assistant City Manager
Zach Curren, Fire Chief
Heather Ruiz, Human Resources Director
Joy Eldredge, Utilities Director
Julie Lucido, Public Works Director
Fabio Rodriguez, Police Chief
Finance Director - Vacant
Molly Rattigan, Community Development Director
Breyana Brandt, Parks and Recreation Services Director
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City Map
16 ATTACHMENT 2
Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association 17 ATTACHMENT 2
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FINANCIAL SECTION
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INDEPENDENT AUDITORS’ REPORT
Independent Auditor’s Report
To The Honorable Mayor and Members of the City Council
City of Napa
Napa, California
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Napa (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2025, the City adopted new accounting guidance, GASB Statement No. 101, Compensated Absences. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
21 ATTACHMENT 2
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and required pension and other post-employment benefits schedules as listed on the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
To The Honorable Mayor and Members of the City Council
City of Napa, California
22 ATTACHMENT 2
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon.
Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 10, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
Sincerely,
Sacramento, California
December 10, 2025
To The Honorable Mayor and Members of the City Council
City of Napa, California
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MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
Management’s Discussion and Analysis (Unaudited)
Financial Highlights for Year Ended June 30, 2025
25 ATTACHMENT 2
INTRODUCTION
This narrative is presented to provide readers of this Annual Comprehensive Financial Report with an overview and analysis of the financial activities of the City of Napa (the “City”) for the fiscal year ended June 30, 2025.
Overview of Financial Statements
The Financial Section of the Annual Comprehensive Financial Report includes the following sections:
1. Independent Auditor’s Report to the The Honorable Mayor and Members of the City Council
2. This introductory commentary, Management’s Discussion and Analysis (MD&A)
3. Basic Financial Statements, including:
a. Government-Wide Financial Statements
b. Fund Financial Statements
c. Notes to the Financial Statements
4. Supplemental Information
a. Non-major governmental funds
b. Internal service funds
c. Fiduciary funds
THE FINANCIAL STATEMENTS
The Basic Financial Statements are comprised of the Government-wide Financial Statements are comprised of the Government-wide Financial Statements and the Fund Financial Statements. These two sets of financial statements provide two different perspectives of the City’s financial activities and financial position. The accompanying Notes to the Basic Financial Statements are an integral part of these financial statements.
The Government-wide Financial Statements provide a long-term view of the City’s activities as a whole. The Statement of Net Position provides information about financial position, including capital assets and long-term liabilities on the full accrual basis, similar to that used by commercial enterprises. The Statement of Activities provides information about the City’s revenues and expenses, also on the full accrual basis, with the emphasis on measuring the net revenues or expenses of City programs. Information is presented both in total and separately for governmental activities, which are generally tax and grant supported and business-type activities which are typically supported by user fees.
The Fund Financial Statements report the City’s operations in more detail than the government-wide statements. The City, like other state and local governments, uses fund accounting to ensure and demonstrate finance-related legal compliance. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds:
• Governmental funds account for most of the City’s basic services and focus primarily on short-term activities by measuring current revenues and expenditures and excluding capital assets and long-term obligations. The City maintains several individual governmental funds organized according to their type (special revenue and capital projects). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Development Fees Fund, HOME Program Fund, Housing Fund, Measure T, and City Capital Projects, which are major funds. Data from the remaining non-major governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non- major governmental funds is provided in the form of combining statements beginning on page 136.
CITY OF NAPA, CALIFORNIA
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
26 ATTACHMENT 2
• Proprietary funds are generally used to account for services for which the City charges customers – either outside customers, or internal departments or programs of the City. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The City maintains the following two types of proprietary funds:
◦ Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the water utility and solid waste and recycling. All of the proprietary funds are major funds. ◦ Internal service funds are used to report activities that provide supplies and services for certain City programs and activities. The City uses internal service funds to account for risk management, fleet services, information technology equipment maintenance and replacement, capital equipment maintenance and replacement, post-employment benefits for current and past employees, on a cost-reimbursement basis. Because these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary funds financial statement. Individual fund data for the internal service funds is provided in the form of combining statements beginning on page 134.
• Fiduciary funds are used to report assets held in a trust or agency capacity for others. The City currently has only one fiduciary fund, the Gasser Community Facilities District (CFD), to account for debt-related activities. This fund cannot be used to support the City’s programs and therefore is not reflected in the government-wide financial statements.
FINANCIAL HIGHLIGHTS
The City provides services to the citizens of Napa by leveraging property, sales, and other taxes with user fees and federal, state, and local grants to finance its operations. The City’s property tax revenue increased in fiscal 2025 as the housing market continued to strengthen.
The governmental activities total assets increased by $28.7 million (to $711.9 million) and business-type activities total assets increased by $12.2 million (to $234.1 million). The increase in total assets was primarily due to a combined increase of $23.4 million in capital assets. The decrease in deferred outflows in the governmental activities and business-type activities is the result of the June 30, 2024, measurements of the net pension liability and the net other post-employment benefits asset.
Overall, the City total liabilities decreased by $17.8 million (to $329.5 million). This is primarily due to a decrease of $16.2 million in current and other liabilities and $1.6 million in long-term liabilities. There was a $12.1 million reduction in deferred revenue primarily due to the recognition of earned revenue of $4.4 million for the Encampment Resolution grant and $7.2 million for the American Rescue Plan Act (ARPA) grant. The decrease of $1.9 million (to $6.3 million) in deferred outflows in the governmental activities and business-type activities was primarily due to a decrease in OPEB-related inflows of resources.
Overall, the City’s net position increased by $46.5 million (to $656.5 million).
CITY OF NAPA, CALIFORNIA
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
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FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
The total net position of the City as of June 30, 2025 and 2024 are summarized in Table 1 below and are followed by a discussion of the balances by category.
Table 1
Summary of Net Position
Governmental Activities Business-Type Activities Total
June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Assets:
Cash and investments $ 256,735,161 $ 234,386,707 $ 99,639,972 $ 98,334,605 $ 356,375,133 $ 332,721,312 Receivables and other assets 73,390,474 79,168,583 12,057,942 12,461,569 85,448,416 91,630,152 Capital assets 381,820,009 369,701,518 122,361,433 111,087,618 504,181,442 480,789,136 Total assets 711,945,644 683,256,808 234,059,347 221,883,792 946,004,991 905,140,600 Deferred outflows of resources:
Deferred outflows 41,978,175 55,682,441 5,182,184 6,775,425 47,160,359 62,457,866 Total deferred outflows of
resources 41,978,175 55,682,441 5,182,184 6,775,425 47,160,359 11,957,609 Liabilities:
Current and other liabilities 23,691,325 32,408,735 10,994,479 11,874,143 34,685,804 54,718,637 Long-term liabilities 232,390,304 237,238,994 62,407,479 65,742,047 294,797,783 292,545,282 Total liabilities 256,081,629 269,647,729 73,401,958 77,616,190 329,483,587 347,263,919 Deferred inflows of resources:
Deferred inflows 5,763,133 6,151,099 1,468,097 2,098,715 7,231,230 8,249,814 Total deferred inflows of
resources 5,763,133 6,151,099 1,468,097 62,385,716 7,231,230 63,853,813 Net position:
Net investment in capital
assets 373,101,354 359,879,963 84,854,583 70,800,085 457,955,937 430,680,048 Restricted 145,307,741 76,246,501 8,144 510 145,315,885 76,247,011 Unrestricted (26,330,038) 27,013,957 79,508,749 78,143,717 53,178,711 105,157,674 Total net position $ 492,079,057 $ 463,140,421 $ 164,371,476 $ 148,944,312 $ 656,450,533 $ 612,084,733 Cash and other assets – The City’s cash and investment portfolio increased by $23.7 million (to $356.4 million), primary due to an increase in property tax, sales tax, and use of money and property. The City’s receivables and other assets decreased by $6.2 million (to $85.5 million) due to the collection of outstanding accounts receivables.
Capital assets – The City’s capital assets increased by $23.4 million during the fiscal year (to $504.2 million).
Additional information on capital assets may be found in Note 7 to the financial statements.
Deferred outflow of resources – The City’s deferred outflow of resources ($42.0 million in governmental activities and $5.2 million in business-type activities) relate to the net pension liability and the Net OPEB asset.
Current and other liabilities – The City’s current and other liabilities decreased by $17.8 million (to $329.5 million). This change is primarily due to the reduction in deferred revenue for the Encampment Resolution grant and the ARPA grant.
CITY OF NAPA, CALIFORNIA
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
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Long-term liabilities – The decrease in the pension liability contributed to an overall decrease of $1.6 million in the long-term liabilities to $291.0 million. This includes the net pension liability of $225.6 million, and loans, notes, leases, SBITA, claims and compensated absences of $60.2 million.
Deferred inflow of resources – The City’s deferred inflow of resources ($4.9 million in governmental activities and $1.5 million in business-type activities) is related to changes in the net pension liability and net other post- employment benefits asset as required by GASB's 68 and 75 and the addition of new GASB 87 leases.
Net position – The governmental activities net position balance of $492.1 million includes $373.1 million of net investment in capital assets, $146.1 million restricted funds available for capital projects and other programs, and a remaining deficit of $27.1 million. The City’s business-type activities reported a net position balance of $164.4 million, which includes $84.9 million of net investment in capital assets, and $79.5 million available for future needs including capital projects.
CITY OF NAPA, CALIFORNIA
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
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Government-wide Statement of Activities
A summarized comparison of the City’s Revenues, Expenses, Business-Type Activities, and Net Position as of June 30, 2025:
Table 2
Summary of Activities
Governmental Activities Business-type Activities Total
June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenues:
Program revenues:
Charges for services $ 35,903,753 $ 29,823,703 $ 96,447,837 $ 81,633,810 $ 132,351,590 $ 111,457,513 Operating grants and
contributions 37,795,345 33,225,580 180,292 524,231 37,975,637 33,749,811 Capital grants and contributions 14,552,686 15,725,652 357,003 2,872,559 14,909,689 18,598,211 General revenues:
Property taxes 52,285,101 50,440,872 - - 52,285,101 50,440,872 Franchise taxes 2,146,232 2,226,860 - - 2,146,232 2,226,860 Sales taxes 28,514,248 22,658,898 - - 28,514,248 22,658,898 Transient occupancy taxes 33,396,044 31,905,493 - - 33,396,044 31,905,493 Use of money and property 13,610,394 10,367,023 5,858,947 4,332,925 19,469,341 14,699,948 Miscellaneous income 628,776 500,552 471,100 546,141 1,099,876 1,046,693 Total revenues 218,832,579 196,874,633 103,315,179 89,909,666 322,147,758 286,784,299 Expenses:
Governmental activities:
General government 36,425,644 32,532,490 - - 36,425,644 32,532,490 Public safety 70,914,273 65,895,817 - - 70,914,273 65,895,817 Public works 36,835,220 32,374,115 - - 36,835,220 32,374,115 Park and recreation 12,668,957 11,210,661 - - 12,668,957 11,210,661 Community development 37,704,556 34,846,996 - - 37,704,556 34,846,996 Interest on long-term debt 205,749 227,324 - - 205,749 227,324 Business-type activities:
Water Utility - - 36,104,438 38,639,478 36,104,438 38,639,478 Solid Waste and Recycling - - 44,022,430 43,517,633 44,022,430 43,517,633 Total expenses 194,754,399 177,087,403 80,126,868 82,157,111 274,881,267 259,244,514 Excess (deficiency) before transfers 24,078,180 19,787,230 23,188,311 7,752,555 47,266,491 27,539,785 Transfers 5,485,200 5,269,310 (5,485,200) (5,269,310) - - Changes in net position 29,563,380 25,056,540 17,703,111 2,483,245 47,266,491 27,539,785 Net position - beginning 463,140,421 438,083,880 148,944,312 146,461,067 612,084,733 584,544,947 Restatement - change in accounting
principle and correction of errors (624,744) - (2,275,947) - (2,900,691) - Net position - beginning, as restated 462,515,677 438,083,880 146,668,365 146,461,067 609,184,042 584,544,947 Net position - ending $ 492,079,057 $ 463,140,420 $ 164,371,476 $ 148,944,312 $ 656,450,533 $ 612,084,732 Changes in net position – The changes in the City’s government-wide net position for the year ended June 30, 2025, reflect the City’s activities during the fiscal year. The governmental activities revenues in fiscal year 2024-25 increased by $21.9 million (to $218.8 million). This is mainly due to an increase of $6.1 million in charges for services, $4.6 million in operating grants and contribution, and $5.7 million from Measure G sales taxes. The Governmental Activities expense increased in FY 2024-25 by $17.7 million (to $194.8 million) primarily due to an increase of $3.9 million in general government, $5.0 million in public safety, and $4.4 million in public works.
CITY OF NAPA, CALIFORNIA
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
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FINANCIAL ANALYSIS OF THE CITY’S FUNDS
In addition to the accrual-basis government-wide financial statements described above, the City also maintains financial records at the fund level for budgetary control. Individual funds are generally established to track the resources and operating results for the general fund and specific restricted programs. The results for the governmental funds shown below differ from those reported above in the government-wide statements because the governmental funds statements focus on current, available, financial resources. The following are financial highlights of the City’s most significant funds:
Governmental Funds
General Fund – The General Fund is the general operating fund of the City. General Fund revenue totaled $149.6 million, which represented 100.02 percent of the $149.3 million adopted budgeted. This is an increase of $12.6 million (or 11.3 percent) from the previous fiscal year. This increase is primary due to an increase of $8.9 million in tax revenue including $5.7 million from Measure G – Sales Tax.
General Fund revenue increased by $12.6 million (or 11.3 percent from the previous fiscal year). This increase is primary related to an increase of $8.9 million in tax revenue including $5.7 million from Measure G – Sales Tax and $2.5 million in stronger than expected returns on investments.
General Fund expenditures totaled $134.6 million, which represented 93 percent of the $144.6 million adopted budget. The General Fund total expenditures ended $10.0 million under budget primary related to unspent professional services and vacancy savings.
General Fund expenditures increased by $11.1 million (9.0 percent over the prior fiscal year). This increase is primarily related to inflationary impacts on labor and other costs of doing business. The most significant increases were in General Services, Police, Fire, Community Development and Public Works, due to cost increase in labor, services and supplies, and other operational costs.
CITY OF NAPA, CALIFORNIA
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
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Development Fees Fund – The sources of revenue for this fund are the various development impact fees collected from developers which are used for the installation or expansion of related infrastructure and affordable housing. Fund balance increased by $13.3 million from the prior fiscal year due to an excess of $6.5 million from building permits, meter fees, and other charges for services and $6.9 million transfer in from City Capital Projects Fund for redistribution.
HOME Program Fund – This fund accounts for Federal grants received under the HOME Investment Partnership Program that is administered by the State of California and program income received from the repayment of previous loans. These funds are used to provide down payment assistance to low-income first-time home buyers.
Fund balance decreased by $0.4 million from the prior fiscal year. The decline in the number of qualified low- income first-time home buyers contributed to the decrease in revenue for charges for services revenue by $0.3 million.
Housing Fund – This fund accounts for activities of the Housing Authority which provides and administers affordable housing programs and services to qualified residents. Fund balance increased by $0.4 million from prior fiscal year primarily due to an increase in intergovernmental revenue and charges for services.
Measure T Fund – This fund accounts for the City’s apportionment of the ½ cent sales tax through Napa County.
Fund is used for the maintenance, reconstruction, and rehabilitation of local streets and roads. This fund replaces the initial Measure A, which focused on flood control. Fund balance increased by $27.6 million from prior fiscal year primarily due to a transfer in of $17.9 million from City Capital Projects Fund for redistribution. Measure T revenue ended at $10.7 million, an increase of $0.4 million from the prior fiscal year.
City Capital Projects Fund – This fund accounts for the City's current construction projects, including streets, park and recreation facilities, and other major City projects. Fund balance decreased by $44.1 million from prior fiscal year primarily due to a transfer out of $31.2 million to various funds for redistribution and $10.0 million increase in expenditures for capital project activity. All resources in this fund are restricted or committed to specific capital improvement programs.
Enterprise Funds
Water Utility Fund – The Water Utility Fund is a fully self-supported enterprise providing water service to the City and adjacent areas. Charges for water and connection fees have consistently been set appropriately to cover both operating and planned maintenance, replacement, and expansion costs. The fund issued bonds in 2007 to expand the Jamieson Canyon Treatment Facility. Net position (unrestricted) includes reserves for rate stabilization reserve ($3.7 million), operating reserve ($4.4 million), emergency reserve ($3.7 million), and a water supply reserve ($1.7 million). For fiscal year 2024-25, revenue totaled $53.7 million compared to $36.2 million in expenses.
Solid Waste and Recycling Fund – The Solid Waste and Recycling Fund is also a fully self-supported enterprise which provides for local solid waste operations and operation of the materials diversion facility. The fund issued bonds in 2017 to fund improvements to the covered compost facility. For fiscal year 2024-25, revenue totaled $49.7 million compared to $44.0 million in expenses.
CITY OF NAPA, CALIFORNIA
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
32 ATTACHMENT 2
The bar chart below shows Water Utility Fund and Solid Waste and Recycling Fund revenue and expenses:
The pie chart below shows Enterprise Fund revenue by source as a percentage of total revenue:
CITY OF NAPA, CALIFORNIA
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
33 ATTACHMENT 2
CAPITAL ASSETS
As of June 30, 2025, the City had invested $504.2 million in capital assets, net of accumulated depreciation and amortization. This represents a $23.4 million increase from the prior fiscal year. Business-type activities capital assets increased by $11.3 million in fiscal year 2024-25. A summary of the City’s capital assets net of depreciation and amortization at June 30, 2025 and 2024 is presented in Table 3. Additional information on Capital Assets can be found in Note 7.
Table 3
Capital Assets
Governmental Activities Business-type Activities Total
June 30,
2025
June 30,
2024
June 30,
2025
June 30,
2024
June 30,
2025
June 30,
2024
Capital assets not subject to
depreciation/amortization:
Land $ 33,395,501 $ 33,395,501 $ 5,289,459 $ 5,289,459 $ 38,684,960 $ 38,684,960 Construction in progress 63,212,955 38,856,026 29,558,630 11,904,149 92,771,585 50,760,175 Net Depreciable capital assets:
Infrastructure 241,885,848 250,316,241 35,056,857 37,074,215 276,942,705 287,390,456 Building and improvements 23,116,642 24,464,874 46,385,712 49,852,734 69,502,354 74,317,608 Improvements, other than buildings 111,707 72,314 64,002 68,842 175,709 141,156 Machinery and equipment 12,787,233 12,808,579 2,483,556 2,864,692 15,270,789 15,673,271 Other capital assets - - 2,320,992 2,551,743 2,320,992 2,551,743 Net Lease assets:
Land 852,719 886,828 - - 852,719 886,828
Vehicles - 5,053 - - - 5,053
Equipment 71,046 20,524 - - 71,046 20,524
Buildings 2,044,408 4,699,317 850,829 1,063,536 2,895,237 5,762,853 Net Subscriptions assets:
Software 4,341,950 4,176,261 351,396 418,248 4,693,346 4,594,509 Total capital assets, net $ 381,820,009 $ 369,701,518 $ 122,361,433 $ 111,087,618 $ 504,181,442 $ 480,789,136
DEBT ADMINISTRATION
The City uses a variety of indebtedness to finance various capital acquisitions and improvements. On June 30, 2025, the City’s long-term outstanding debt was $46.1 million. This represents a $4.6 million decrease from the prior fiscal year.
CITY OF NAPA, CALIFORNIA
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
34 ATTACHMENT 2
The following table provides a schedule of the City’s long-term debt obligations on June 30, 2025, and 2024.
Table 4
Long-Term Debt
Governmental Activities Business-type Activities Total
June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Solid waste revenue bonds $ - $ - $ 8,496,031 $ 9,087,487 $ 8,496,031 $ 9,087,487 Water revenue bonds - - 27,815,374 30,336,411 27,815,374 30,336,411 Notes payable 766,495 1,005,640 - - 766,495 1,005,640 Lease liability 4,293,456 5,691,759 896,454 1,090,477 5,189,910 6,782,236 Subscription liability 3,526,172 3,124,157 315,451 385,594 3,841,623 3,509,751 Total long-term debt $ 8,586,123 $ 9,821,556 $ 37,523,310 $ 40,899,969 $ 46,109,433 $ 50,721,525 Additional information on Long Term Debt can be found in Note 8.
ECONOMIC OUTLOOK
The City annually prepares a multi-year financial forecast, which focuses on the long-term financial viability of the City’s General Fund and provides decision makers with information to better understand the long-term fiscal impact of policy decisions. Budget development adheres to a series of policies adopted by the City Council, which guide long-term fiscal planning. The City has a strong, diverse revenue base of property taxes, sales taxes, transient occupancy taxes as well as other local, state, and federal revenue sources. Tourism in the Napa Valley is strong, which further strengthens the City’s economic base. Additional details on the economy of the City are discussed in the accompanying Transmittal Letter.
CONTACTING THE CITY
This financial report is designed to provide a general overview of the City’s finances for all of its citizens, taxpayers, investors, and creditors. Questions concerning any information provided in this report or requests for additional information should be addressed to the Finance Department at 955 School Street, Napa, California.
The mailing address is Post Office Box 660, Napa, California, 94559-0660.
CITY OF NAPA, CALIFORNIA
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
35 ATTACHMENT 2
BASIC FINANCIAL STATEMENTS
36 ATTACHMENT 2
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37 ATTACHMENT 2
Government-Wide Financial Statements
38 ATTACHMENT 2
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39 ATTACHMENT 2
Statement of Net Position
Primary Government
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 246,642,747 $ 99,639,972 $ 346,282,719 Receivables (net of uncollectibles):
Accounts 25,558,429 12,921,221 38,479,650
Accrued interest 361,712 144,155 505,867
Due from other governments 5,718,941 2,486,502 8,205,443 Service concession arrangement 46,572 - 46,572
Notes and loans 34,378,620 - 34,378,620
Leases 241,111 1,075,283 1,316,394
Internal balances 4,659,078 (4,659,078) -
Restricted assets:
Restricted cash and investments 10,092,414 - 10,092,414 Restricted cash with fiscal agent - 980 980
Net OPEB asset 44,654 7,164 51,818
Inventories 580 - 580
Prepaid costs 2,380,777 81,715 2,462,492
Capital assets (not being depreciated) 96,608,456 34,848,089 131,456,545 Capital assets (net of accumulated depreciation/amortization) 285,211,553 87,513,344 372,724,897 Total assets 711,945,644 234,059,347 946,004,991
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 550,733 550,733
Pension - deferred outflows 39,036,609 4,159,524 43,196,133 OPEB - deferred outflows 2,941,566 471,927 3,413,493 Total deferred outflows of resources 41,978,175 5,182,184 47,160,359
LIABILITIES
Accounts payable and accrued liabilities 13,452,824 8,317,667 21,770,491 Accrued interest payable 75,515 247,466 322,981
Deposits payable 2,096,293 2,421,513 4,517,806
Unearned revenue 8,066,693 7,833 8,074,526
Noncurrent liabilities:
Due within one year:
Loans, notes, leases, SBITA, claims, and compensated absences 12,050,249 3,816,185 15,866,434 Due in more than one year:
Net pension liability 201,716,153 23,929,484 225,645,637 Loans, notes, leases, SBITA, claims, and compensated absences 18,623,902 34,661,810 53,285,712 Total liabilities 256,081,629 73,401,958 329,483,587
DEFERRED INFLOWS OF RESOURCES
Pension - deferred inflows 22,596 - 22,596
OPEB - deferred inflows 3,121,431 500,784 3,622,215
Lease-related 2,572,534 967,313 3,539,847
Service concession-related 46,572 - 46,572
Total deferred inflows of resources 5,763,133 1,468,097 7,231,230
NET POSITION
Net investment in capital assets 373,101,354 84,854,583 457,955,937 Restricted:
Community and economic development 1,374,795 - 1,374,795 Public safety 882,327 - 882,327
Capital projects 126,789,981 - 126,789,981
Restricted for debt service - 980 980
Housing 6,123,570 - 6,123,570
Other postemployment benefits 10,137,068 7,164 10,144,232 Unrestricted (26,330,038) 79,508,749 53,178,711
Total net position $ 492,079,057 $ 164,371,476 $ 656,450,533
CITY OF NAPA, CALIFORNIA
Statement of Net Position
June 30, 2025
40 ATTACHMENT 2
Statement of Activities
Functions/Programs:
Primary government:
Governmental activities:
General government $ 36,425,644 $ 9,026,459 $ 7,320,519 $ - Public safety 70,914,273 9,625,475 - -
Community development 37,704,556 10,218,841 29,731,061 - Parks and recreation 12,668,957 2,359,163 396,266 - Public works 36,835,220 4,673,815 347,499 14,552,686 Interest on long-term debt 205,749 - - -
Total governmental activities 194,754,399 35,903,753 37,795,345 14,552,686 Business-type activities:
Water Utility 36,104,438 48,110,397 18,703 357,003
Solid Waste and Recycling 44,022,430 48,337,440 161,589 - Total business-type activities 80,126,868 96,447,837 180,292 357,003 Total primary government $ 274,881,267 $ 132,351,590 $ 37,975,637 $ 14,909,689 General revenues and transfers:
General revenues:
Property taxes
Transient occupancy taxes
Sales taxes
Franchise taxes
Use of money and property
Miscellaneous income
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning
Restatement - change in accounting principle and correction of errors Net position - beginning, as restated
Net position - ending
Program Revenues
Expenses
Charges for
Services
Operating
Contributions and
Grants
Capital
Contributions and
Grants
CITY OF NAPA, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 41 ATTACHMENT 2
Functions/Programs:
Primary government:
Governmental activities:
General government $ (20,078,666) $ - $ (20,078,666)
Public safety (61,288,798) - (61,288,798)
Community development 2,245,346 - 2,245,346
Parks and recreation (9,913,528) - (9,913,528)
Public works (17,261,220) - (17,261,220)
Interest on long-term debt (205,749) - (205,749)
Total governmental activities (106,502,615) - (106,502,615) Business-type activities:
Water Utility - 12,381,665 12,381,665
Solid Waste and Recycling - 4,476,599 4,476,599
Total business-type activities - 16,858,264 16,858,264 Total primary government (106,502,615) 16,858,264 (89,644,351) General revenues and transfers:
General revenues:
Property taxes 52,285,101 - 52,285,101
Transient occupancy taxes 33,396,044 - 33,396,044
Sales taxes 28,514,248 - 28,514,248
Franchise taxes 2,146,232 - 2,146,232
Use of money and property 13,610,394 5,858,947 19,469,341 Miscellaneous income 628,776 471,100 1,099,876
Transfers 5,485,200 (5,485,200) -
Total general revenues and transfers 136,065,995 844,847 136,910,842 Change in net position 29,563,380 17,703,111 47,266,491 Net position - beginning 463,140,421 148,944,312 612,084,733 Restatement - change in accounting principle
and correction of errors (624,744) (2,275,947) (2,900,691) Net position - beginning, as restated 462,515,677 146,668,365 609,184,042 Net position - ending $ 492,079,057 $ 164,371,476 $ 656,450,533 Net (Expenses) Revenues and
Changes in Net Position
Primary Government
Governmental
Activities
Business-Type
Activities Total
CITY OF NAPA, CALIFORNIA
Statement of Activities (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 42 ATTACHMENT 2
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43 ATTACHMENT 2
Fund Financial Statements
In the Fund Financial Statements only individual major funds are presented, while non-major funds are combined in a single column. Major funds generally have significant activities or balances in the current year. The funds described below were determined to be Major Funds by the City. Individual non-major funds may be found in the Other Supplementary Information section.
Government Fund Financial Statements
In the Fund Financial Statements only individual major funds are presented, while non-major funds are combined in a single column. The major funds generally have significant activities or balances in the current year. The funds described below were determined to be Major Funds by the City. Individual non-major funds may be found in the Other Supplementary Information section.
GENERAL FUND
The General Fund is the general operating fund of the City. It is used to account for all financial resources except those that are required to be accounted for in another fund. The General Fund is always a major fund.
DEVELOPMENT FEES FUND
The Development Fees Special Revenue Fund accounts for development fees levied by the City on new construction. State law and City ordinance restricts these revenues for use in construction, major maintenance, and debt service for park, street, drainage, and public safety facilities.
HOME PROGRAM FUND
The City has been awarded grants under the State of California Federal Home Investments Partnership Program (HOME) for administration of the following activities: ownership rehabilitation, rental rehabilitation augmenting the Community Development Block Grant Rehabilitation Program, a silent second down payment assistance program; and a rental assistance program.
HOUSING FUND
The Housing Fund accounts for activities of the Housing Authority which provides and administers affordable housing programs and services to qualified residents. The Housing Authority administers Federal funds including Section 8 Housing Vouchers county-wide; Mainstream Vouchers county-wide; Continuum of Care Funds; the Local Housing Fund; the Operating Reserve Fund and the Management of Housing Authority owned properties.
MEASURE T FUND
The Measure T Fund accounts for the City’s apportionment of the ½ cent sales tax through Napa County. The fund is used for the maintenance, reconstruction, and rehabilitation of local streets and roads. This fund replaces the initial Measure A, which focused on flood control.
CITY CAPITAL PROJECTS FUND
The City Capital Projects Fund accounts for the City’s current construction projects, including streets, park and recreation facilities, and other major City projects. The primary sources of funds include City- levied development fees, the state gas tax, Measure T and federal and state grants.
See accompanying Notes to the Basic Financial Statements 44 ATTACHMENT 2
Balance Sheet - Governmental Funds
ASSETS
Cash and investments $ 35,580,625 $ 42,701,748 $ 413,448 $ 9,960,736 Receivables (net of allowance for uncollectibles):
Accounts 18,477,174 736,918 - 47,167
Interest 183,913 51,162 641 7,304
Federal, state and other governments 2,934,021 - 409,192 718,263 Loans 293,339 8,655,968 8,731,819 10,424,631
Lease 241,111 - - -
Due from other funds 11,002,790 - - -
Inventories 580 - - -
Prepaid items 1,005,695 384 586 19,653
Advances to other funds 2,287,972 183,600 - -
Total assets $ 72,007,220 $ 52,329,780 $ 9,555,686 $ 21,177,754
LIABILITIES
Accounts payable and accrued liabilities $ 6,622,004 $ 15,773 $ 18,792 $ 273,331 Deposits payable 1,616,994 292,938 - 176,361
Due to other funds - 4,111 - 4,003,886
Unearned revenue 1,641,925 - - 128,617
Advances from other funds - 3,072,563 - -
Total liabilities 9,880,923 3,385,385 18,792 4,582,195
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 2,656,599 9,372,052 9,116,011 10,452,336 Lease-related 218,784 - - -
Total deferred inflows of resources 2,875,383 9,372,052 9,116,011 10,452,336
FUND BALANCES (DEFICITS)
Nonspendable 3,294,247 384 586 19,653
Restricted 6,082,494 39,571,959 420,297 6,123,570
Committed 25,945,976 - - -
Unassigned (deficit) 23,928,197 - - -
Total fund balances (deficits) 59,250,914 39,572,343 420,883 6,143,223 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 72,007,220 $ 52,329,780 $ 9,555,686 $ 21,177,754 Special Revenue Funds
General Fund Development Fees HOME Program Housing
CITY OF NAPA, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 45 ATTACHMENT 2
Nonmajor Governmental
Funds Funds
ASSETS
Cash and investments $ 25,901,320 $ 38,922,521 $ 43,907,908 $ 197,388,306 Receivables (net of allowance for uncollectibles):
Accounts 4,238,114 510,580 1,538,795 25,548,748
Interest 3,175 - 52,855 299,050
Federal, state and other governments - 122,764 731,222 4,915,462 Loans - - 6,272,863 34,378,620
Lease - - - 241,111
Due from other funds - - 11,002,790
Inventories - - - 580
Prepaid items - - 1,209,754 2,236,072
Advances to other funds - 1,942,441 - 4,414,013
Total assets $ 30,142,609 $ 41,498,306 $ 53,713,397 $ 280,424,752
LIABILITIES
Accounts payable and accrued liabilities $ - $ 4,809,537 $ 846,482 $ 12,585,919 Deposits payable - - 10,000 2,096,293
Due to other funds - - 1,117,894 5,125,891
Unearned revenue - - 6,296,151 8,066,693
Advances from other funds - - 1,341,450 4,414,013
Total liabilities - 4,809,537 9,611,977 32,288,809
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 291,271 6,603,924 38,492,193
Lease-related - - 2,353,750 2,572,534
Total deferred inflows of resources - 291,271 8,957,674 41,064,727
FUND BALANCES (DEFICITS)
Nonspendable - - 1,209,754 4,524,624
Restricted 30,142,609 16,152,192 36,677,552 135,170,673 Committed - 20,245,306 - 46,191,282
Unassigned (deficit) - - (2,743,560) 21,184,637
Total fund balances (deficits) 30,142,609 36,397,498 35,143,746 207,071,216 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 30,142,609 $ 41,498,306 $ 53,713,397 $ 280,424,752 Special Revenue
Funds
Capital Projects
Funds
Measure T
City Capital
Projects
Total Total
CITY OF NAPA, CALIFORNIA
Balance Sheet
Governmental Funds (Continued)
June 30, 2025
See accompanying Notes to the Basic Financial Statements 46 ATTACHMENT 2
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47 ATTACHMENT 2
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Amounts reported for governmental activities in the Statement of Net Position are different because:
Total fund balances - governmental funds $ 207,071,216
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds. 366,746,396 Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.
Deferred outflows-pension and OPEB related 38,538,881
Deferred inflows-pension and OPEB related (22,596)
Total deferred outflows and inflows related to postemployment benefits 38,516,285 Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.
Service concession receivable 46,572
Service concession-related deferred inflows of resources (46,572) Loans and grants 38,492,193
Total other long-term assets 38,492,193
Internal service funds provide services to other funds on a cost-reimbursement basis. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities. 55,269,583
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.
Bonds payable (512,681)
Notes payable (253,814)
Leases, SBITA, and PPP payable (7,802,316)
Compensated absences (6,519,535)
Accrued interest payable on long-term debt (75,515)
Net pension liability (198,852,755)
Total long-term liabilities (214,016,616)
Net position of governmental activities $ 492,079,057
CITY OF NAPA, CALIFORNIA
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2025
See accompanying Notes to the Basic Financial Statements 48 ATTACHMENT 2
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Special Revenue Funds
Development
Fees HOME Program HousingGeneral Fund
REVENUES
Taxes $ 112,722,891 $ - $ - $ -
Licenses and permits 9,387,575 - - -
Intergovernmental 11,793,309 - - 22,380,202
Charges for services 10,116,625 4,440,569 5,831 2,022,984 Investment income (loss) 5,316,245 2,250,213 38,529 282,444 Miscellaneous 311,749 - - -
Total revenues 149,648,394 6,690,782 44,360 24,685,630
EXPENDITURES
Current:
General government
City council 358,522 - - -
City clerk 1,394,893 - - -
City manager 5,453,329 - - -
Finance 4,636,949 - - -
City attorney 1,679,215 - - -
Human resources 2,208,431 - - -
General services 12,365,114 - - -
Public safety
Police 39,173,307 - - -
Fire 28,007,216 48 - -
Community development 6,417,328 180,568 422,721 23,488,827 Parks and recreation 11,162,142 7,277 - -
Public works 16,307,200 4,442 - -
Capital outlay 3,400,904 - - -
Debt service:
Principal 1,898,965 - - 114,185
Interest and fiscal charges 140,222 45,631 - 24,568 Total expenditures 134,603,737 237,966 422,721 23,627,580 Excess (deficiency) of revenues over (under)
expenditures 15,044,657 6,452,816 (378,361) 1,058,050
OTHER FINANCING SOURCES (USES)
Transfers in 5,161,976 6,860,676 - -
Transfers out (12,162,335) (62,280) - (618,290)
Lease issuance 802,222 - - -
Subscription issuance 1,924,028 - - -
Total other financing sources (uses) (4,274,109) 6,798,396 - (618,290) Net change in fund balances 10,770,548 13,251,212 (378,361) 439,760 Fund balances - beginning 48,480,366 26,321,131 799,244 5,703,463 Restatement - change within financial reporting entity - - - - Fund balances (deficit) - beginning, as restated 48,480,366 26,321,131 799,244 5,703,463 Fund balances (deficit) - ending $ 59,250,914 $ 39,572,343 $ 420,883 $ 6,143,223
CITY OF NAPA, CALIFORNIA
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 49 ATTACHMENT 2
Special Revenue
Funds
Capital Projects
Funds
Formerly
Nonmajor
Measure T
City Capital
Projects
Total Total
Nonmajor Governmental
Funds Funds
REVENUES
Taxes $ - $ - $ 2,841,812 $ 115,564,703
Licenses and permits - - - 9,387,575
Intergovernmental 10,079,315 396,947 10,703,406 55,353,179 Charges for services - 13,219 4,209,774 20,809,002
Investment income (loss) 649,542 - 2,057,426 10,594,399 Miscellaneous - 30,000 287,027 628,776
Total revenues 10,728,857 440,166 20,099,445 212,337,634
EXPENDITURES
Current:
General government
City council - - - 358,522
City clerk - - - 1,394,893
City manager - - - 5,453,329
Finance - - - 4,636,949
City attorney - - - 1,679,215
Human resources - - - 2,208,431
General services - - 132,018 12,497,132
Public safety
Police - - 578,908 39,752,215
Fire - - - 28,007,264
Community development - - 6,699,618 37,209,062
Parks and recreation - - 106,237 11,275,656
Public works 862 9,717,174 6,226 26,035,904
Capital outlay - 20,171,322 29,440 23,601,666
Debt service:
Principal - - 2,016,704 4,029,854
Interest and fiscal charges - - 83,296 293,717
Total expenditures 862 29,888,496 9,652,447 198,433,809 Excess (deficiency) of revenues over (under)
expenditures 10,727,995 (29,448,330) 10,446,998 13,903,825
OTHER FINANCING SOURCES (USES)
Transfers in 17,944,855 16,606,451 6,334,991 52,908,949 Transfers out (1,000,000) (31,222,731) (3,828,790) (48,894,426) Lease issuance - - - 802,222
Subscription issuance - - - 1,924,028
Total other financing sources (uses) 16,944,855 (14,616,280) 2,506,201 6,740,773 Net change in fund balances 27,672,850 (44,064,610) 12,953,199 20,644,598 Fund balances - beginning - 80,462,108 24,660,306 186,426,618 Restatement - change within financial reporting entity 2,469,759 - (2,469,759) - Fund balances (deficit) - beginning, as restated 2,469,759 80,462,108 22,190,547 186,426,618 Fund balances (deficit) - ending $ 30,142,609 $ 36,397,498 $ 35,143,746 $ 207,071,216
CITY OF NAPA
Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 50 ATTACHMENT 2
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51 ATTACHMENT 2
Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities and Changes in Net Position Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - total governmental funds: $ 20,644,598 Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.
Capital outlay 24,622,853
Depreciation/amortization expense (14,956,427)
Total adjustment 9,666,426
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
Earned but unavailable loans and grant revenue 94,875
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.
Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position.
Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
Leases and SBITA issued and other adjustments (3,008,433) Principal payments 3,956,054
Total adjustment 947,621
Internal service funds provide services to other funds on a cost-reimbursement basis.
The net revenue of certain activities of internal service funds is reported with governmental activities. 7,870,694
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.
Accrued interest on long-term debt 88,021
Compensated absences (1,034,582)
Changes in pension liabilities and related deferred outflows and inflows of resources (8,714,273) Total adjustment (9,660,834)
Change in net position of governmental activities $ 29,563,380
CITY OF NAPA, CALIFORNIA
Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities and Changes in Net Position For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 52 ATTACHMENT 2
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53 ATTACHMENT 2
Proprietary Fund Financial Statements
Proprietary funds account for City operations being financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.
WATER UTILITY FUND
The Water Utility Fund supports the operation, maintenance and improvement of the municipal water system serving the City and adjacent areas. The City provides an uninterrupted supply of high-quality and low-cost water to the community for consumption and fire protection.
SOLID WASTE AND RECYCLING FUND
The Solid Waste and Recycling Fund is responsible for the collection, processing, public education and long-term planning related to solid waste materials generated in the City of Napa.
See accompanying Notes to the Basic Financial Statements 54 ATTACHMENT 2
Statement of Net Position
ASSETS
Current assets:
Cash and investments $ 82,801,204 $ 16,838,768 $ 99,639,972 $ 49,254,441 Receivables (net of uncollectibles):
Accounts 9,598,771 3,322,450 12,921,221 32,303
Interest 121,665 22,490 144,155 62,662
Federal, state and other governments 1,862,566 623,936 2,486,502 803,479 Lease 53,789 53,836 107,625 -
Prepaid items 81,715 - 81,715 144,705
Restricted:
Restricted cash and investments 915 65 980 10,092,414 Net OPEB asset 6,254 910 7,164 44,654
Total current assets 94,526,879 20,862,455 115,389,334 60,434,658 Noncurrent:
Leases receivable, noncurrent 559,496 408,162 967,658 - Capital assets, net 96,917,267 25,444,166 122,361,433 15,073,613 Total noncurrent assets 97,476,763 25,852,328 123,329,091 15,073,613 Total assets 192,003,642 46,714,783 238,718,425 75,508,271
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 550,733 - 550,733 -
Pension-related 3,655,168 504,356 4,159,524 497,728 OPEB-related 411,983 59,944 471,927 2,941,566
Total deferred outflows of resources 4,617,884 564,300 5,182,184 3,439,294
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 7,329,341 988,326 8,317,667 889,527 Accrued interest 138,925 108,541 247,466 -
Deposits payable 2,065,747 355,766 2,421,513 -
Due to other funds 3,861,244 797,834 4,659,078 1,217,821 Unearned revenue 7,833 - 7,833 -
Compensated absences 515,732 79,394 595,126 68,263
Current portion of long-term debt 2,467,172 753,887 3,221,059 17,312 Claims payable - - - 3,889,740
Total current liabilities 16,385,994 3,083,748 19,469,742 6,082,663 Noncurrent liabilities:
Compensated absences 307,138 52,421 359,559 23,229
Noncurrent claims - - - 11,587,261
Long-term debt 26,291,171 8,011,080 34,302,251 -
Net pension liability 21,027,954 2,901,530 23,929,484 2,863,398 Total noncurrent liabilities 47,626,263 10,965,031 58,591,294 14,473,888 Total liabilities 64,012,257 14,048,779 78,061,036 20,556,551
DEFERRED INFLOWS OF RESOURCES
OPEB-related 437,175 63,609 500,784 3,121,431
Lease-related 538,938 428,375 967,313 -
Total deferred inflows of resources 976,113 491,984 1,468,097 3,121,431
NET POSITION
Net investment in capital assets 68,175,384 16,679,199 84,854,583 15,056,301 Restricted 7,169 975 8,144 10,137,068
Unrestricted 63,450,603 16,058,146 79,508,749 30,076,214 Total net position $ 131,633,156 $ 32,738,320 $ 164,371,476 $ 55,269,583 Business-Type Activities
Governmental
Activities
Water Utility
Solid Waste and
Recycling
Total
Enterprise Internal
Funds Service Funds
CITY OF NAPA, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 55 ATTACHMENT 2
Statement of Revenues, Expenses and Changes in Net Position
OPERATING REVENUES
Charges for services $ 48,110,397 $ 48,337,440 $ 96,447,837 $ 23,106,884 Miscellaneous 292,003 178,567 470,570 16,884
Total operating revenues 48,402,400 48,516,007 96,918,407 23,123,768
OPERATING EXPENSES
Employee services and benefits 12,376,654 1,879,143 14,255,797 279,485 Materials and services 17,834,542 40,232,804 58,067,346 5,525,928 Depreciation and amortization 4,930,254 1,637,888 6,568,142 2,570,149 Insurance premiums and claims - - - 11,568,443
Total operating expenses 35,141,450 43,749,835 78,891,285 19,944,005 Operating income (loss) 13,260,950 4,766,172 18,027,122 3,179,763
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 18,703 161,589 180,292 -
Investment income (loss) 4,875,463 983,484 5,858,947 3,015,996 Interest and fiscal charges (962,988) (272,595) (1,235,583) (14) Total nonoperating revenues (expenses) 3,931,178 873,008 4,804,186 3,220,254 Income (loss) before capital contributions and
transfers 17,192,128 5,639,180 22,831,308 6,400,017 Capacity fees and capital grants 357,003 - 357,003 - Transfers out (3,297,190) (2,188,010) (5,485,200) (101,580) Change in net position 14,251,941 3,451,170 17,703,111 7,870,694 Net position - beginning 119,657,162 29,287,150 148,944,312 47,398,889 Restatements - change in accounting principle and
correction of errors (2,275,947) - (2,275,947) -
Net position - beginning, as restated 117,381,215 29,287,150 146,798,377 47,398,889 Net position - ending $ 131,633,156 $ 32,738,320 $ 164,371,476 $ 55,269,583 Business-type Activities - Enterprise Funds
Governmental
Activities
Water Utility
Solid Waste and
Recycling
Total
Enterprise Internal
Funds Service Funds
CITY OF NAPA, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 56 ATTACHMENT 2
Statement of Cash Flows
Business-Type Activities
Governmental
Activities
Water Utility
Solid Waste and
Recycling
Internal
Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 46,943,916 $ 48,126,229 $ 95,070,145 $ - Receipts from interfund charges - - - 23,076,412
Payments to suppliers and service providers (18,841,818) (40,215,737) (59,057,555) (16,962,853) Payments to employees for salaries and benefits (13,565,679) (1,734,298) (15,299,977) (1,647,828) Other receipts (payments) 292,003 178,567 470,570 1,169,885 Net cash provided by (used for) operating activities 14,828,422 6,354,761 21,183,183 5,635,616
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds - - - 1,572,257
Transfers to other funds (3,297,190) (2,188,010) (5,485,200) (101,580) Payments to other funds on interfund borrowings (614,847) (133,193) (748,040) - Receipts to other funds on interfund borrowings - - - 1,217,821 Operating grants and contributions 2,398,007 276,860 2,674,867 440 Net cash provided by (used for) noncapital financing
activities (1,514,030) (2,044,343) (3,558,373) 2,688,938
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital contributions 357,003 - 357,003 -
Acquisition and construction of capital assets (16,791,340) (1,001,567) (17,792,907) (5,083,239) Principal paid on capital debt (2,773,648) (649,663) (3,423,311) (22,514) Interest paid on capital debt (923,235) (277,519) (1,200,754) (14) Net cash provided by (used for) capital and related
financing activities (20,131,220) (1,928,749) (22,059,969) (5,105,767)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 4,888,312 983,206 5,871,518 3,022,372 Net cash provided by (used for) investing activities 4,888,312 983,206 5,871,518 3,022,372 Net increase (decrease) in
cash and cash equivalents (1,928,516) 3,364,875 1,436,359 6,241,159 Cash and cash equivalents - beginning 84,860,647 13,473,958 98,334,605 53,105,696 Cash and cash equivalents - ending $ 82,932,131 $ 16,838,833 $ 99,770,964 $ 59,346,855
CITY OF NAPA, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 57 ATTACHMENT 2
Business-Type Activities
Governmental
Activities
Water Utility
Solid Waste and
Recycling
Internal
Totals Service Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss) $ 13,260,950 $ 4,766,172 $ 18,027,122 $ 3,179,763 Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 4,930,254 1,637,888 6,568,142 2,570,149 (Increase) decrease in accounts receivable (1,382,022) (210,579) (1,592,601) (30,472) (Increase) decrease in notes and loans receivable 90,625 - 90,625 - (Increase) decrease in leases receivable (6,233) (5,470) (11,703) - (Increase) decrease in prepaid items 946 - 946 1,549 Increase (decrease) in accounts payable (1,008,222) 17,067 (991,155) 129,969 Increase (decrease) in deposits payable 131,149 4,838 135,987 - Increase (decrease) in compensated absences (2,075,905) 19,836 (2,056,069) 1,628 Increase (decrease) in claims and judgments - - - 1,153,001 Increase (decrease) in net pension liability 1,094,624 154,923 1,249,547 (519,087) Increase (decrease) in net OPEB liability (207,744) (29,914) (237,658) (850,884) Total adjustments 1,567,472 1,588,589 3,156,061 2,455,853 Net cash provided by (used for) operating activities $ 14,828,422 $ 6,354,761 $ 21,183,183 $ 5,635,616
SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,
AND INVESTING ACTIVITIES
Capital assets were acquired through subscription
arrangements $ 46,652 $ - $ 46,652 $ -
CITY OF NAPA, CALIFORNIA
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 58 ATTACHMENT 2
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See accompanying Notes to the Basic Financial Statements 59 ATTACHMENT 2
Fiduciary Fund Financial Statements
This fund is used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the government-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
GASSER COMMUNITY FACILITIES DISTRICT CUSTODIAL FUND
To account for the bond activities of the Gasser Community Facilities District (CFD) established September 5, 2017 for the purpose of constructing public roads, bridges, water quality improvements, drainage improvements, and water system improvements along Soscol Canyon Road. The CFD will levy an annual special tax for repayment of the bond.
See accompanying Notes to the Basic Financial Statements 60 ATTACHMENT 2
Statement of Fiduciary Net Position
ASSETS
Cash and investments $ 1,170,291
Receivables:
Accounts 707
Interest 1,414
Restricted cash and investments 1,199,466
Total assets 2,371,878
LIABILITIES
Due to bondholders 2,371,878
Total liabilities 2,371,878
NET POSITION
Held in Trust -
Total net position $ -
Gasser CFD
Custodial Fund
CITY OF NAPA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 61 ATTACHMENT 2
Statement of Changes in Fiduciary Net Position
Gasser CFD
Custodial Fund
ADDITIONS
Investment income (loss) $ 93,739
Special assessments 1,171,156
Total additions 1,264,895
DEDUCTIONS
Administration 116,240
Interest and fiscal charges 673,655
Principal 475,000
Total deductions 1,264,895
Net increase (decrease) in fiduciary net position -
Net position - beginning -
Net position - ending $ -
CITY OF NAPA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 62 ATTACHMENT 2
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63 ATTACHMENT 2
Notes to The Basic Financial Statements
64 ATTACHMENT 2
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 A. Description of Government-wide Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 B. Financial Reporting Entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 C. Basis of Presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 D. Basis of Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 E. Budgetary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 F. Cash and Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 G. Property Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 H. Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 I. Long-Term Loan Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 J. Prepaid Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 K. Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 L. Subscription-Based Information Technology Arrangements (SBITAs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 M. Capital Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 N. Compensated Absences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 O. Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 P. Other Post Employment Benefits Other Than Pensions (OPEB) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Q. Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 R. Fund Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 S. Use of Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 T. Deferred Outflows/Inflows of Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 U. Implementation of New GASB Pronouncements For the Year Ended June 30, 2025 . . . . . . . . . . . . . . . . . . 77 NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 A. Violations of Legal or Contractual Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 B. Fund Balance/Net Position Deficits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 NOTE 3: CASH AND INVESTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 A. Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 B. Investments Authorized by the California Government Code and the City’s Investment Policy . . . . . . . . . . 79 C. Investments Authorized by Debt Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 D. Disclosures Relating to Interest Rate Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 E. Disclosures Relating to Credit Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 F. Investment in Local Agency Investment Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 G. Investment Held in Public Agencies Retirement Services (PARS) Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 H. Fair Value Hierarchy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 NOTE 4: LEASE RECEIVABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 A. Governmental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 B. Business-Type Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 NOTE 5: LOANS RECEIVABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 NOTE 6: INTERFUND TRANSACTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 A. Due To/ From Other Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 B. Long-Term Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 C. Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 NOTE 7: CAPITAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 A. Governmental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 B. Business-type Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 NOTE 8: LONG-TERM DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 A. Current Year Transactions and Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 B. California Energy Commission Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 C. Housing Authority Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 D. Leases Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 E. Subscription Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 F. Water Fund Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 G. Solid Waste Revenue Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
CITY OF NAPA, CALIFORNIA
Index of Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
65 ATTACHMENT 2
NOTE 9: DEBT WITH NO CITY COMMITMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 A. Mortgage Revenue Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 B. Community Facilities District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 NOTE 10: COMPENSATED ABSENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 A. Governmental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 B. Business-Type Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 NOTE 11: FUND BALANCE CLASSIFICATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 NOTE 12: EMPLOYEE RETIREMENT SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 A. Plan Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 B. Benefits Provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 C. Employees Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 D. Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 E. Pension Expense and Deferred Outflows/Inflows of Resource Related to Pensions . . . . . . . . . . . . . . . . . . . 103 F. Defined Contribution Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 G. Other Retirement Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (OPEB) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 A. Plan Description and Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 B. Employees Covered by Benefit Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 C. Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 D. Net OPEB Liability (Asset) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 E. Changes in the Net OPEB Liability (Asset) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 F. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB . . . . . . . . . . . . . . . . . . 108 G. Substantive Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 NOTE 14: RISK MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 NOTE 15: NAPA VALLEJO WASTE MANAGEMENT AUTHORITY
(FORMERLY SOUTH NAPA VALLEY WASTE MANAGEMENT AUTHORITY) . . . . . . . . . . . . . . . . . . . . . . . 112
NOTE 16: COMMITMENTS AND CONTINGENCIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 A. Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 B. Claims and Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 C. Federal and State Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 D. Tax Sharing Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 E. Construction Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 F. North Bay Aqueduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 NOTE 17: PUBLIC PRIVATE SERVICE CONCESSION ARRANGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . 114 NOTE 18: PRIOR PERIOD ADJUSTMENTS AND RESTATEMENT OF FUND BALANCE/NET POSITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
A. Change in Accounting Principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 B. Changes to or within the Reporting Entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 C. Error Correction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 NOTE 19: SUBSEQUENT EVENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
CITY OF NAPA, CALIFORNIA
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
66 ATTACHMENT 2
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Napa, California (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard- setting body for establishing governmental accounting and financial reporting principles. The City’s significant accounting policies are described below.
A. Description of Government-wide Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.
B. Financial Reporting Entity
The City was incorporated on March 23, 1872, under the laws of the State of California. The City’s charter was filed on October 27, 1914. The City operates under a Council-Manager form of government. As required by generally accepted accounting principles, these financial statements present the City of Napa and its component units. The following component units are included in the City’s reporting entity because of the significance of their operational or financial relationships with the City.
Blended component units, although legally separate entities are, in substance, part of the City’s operations and so data from these units are combined with that of the City.
The Housing Authority of the City of Napa (the Housing Authority) was established on May 8, 1942. On July 7, 1969, the City Council declared itself to be the Board of Commissioners of the Housing Authority in accordance with Section 34920 of the Health and Safety Code of the State of California. The City of Napa has operational responsibility for the component unit.
The Parking Authority of the City of Napa (the Parking Authority) was established pursuant to the Streets and Highways Code of the State of California. The City Council established the Parking Authority on April 27, 1970 and designated itself as the governing body. The primary purpose of the Authority is to acquire, maintain and operate off-street parking facilities within the City. The Parking Authority reported no financial transactions during the year ended June 30, 2025.
C. Basis of Presentation
Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the City. These statements include the financial activities of the overall City government, except for fiduciary activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
504
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
67 ATTACHMENT 2
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Certain eliminations have been made in regard to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated, except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated.
The City may pay for its programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted resources may be available to finance program expenditures. The City’s policy is to first apply restricted resources to such programs, followed by general revenues if necessary.
Fund Financial Statements: The fund financial statements provide information about the City’s funds. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
The City reported the following major governmental funds:
The General Fund
is the general operating fund of the City. It is used to account for all financial resources except those that are required to be accounted for in another fund.
The Development Fees Fund
accounts for development fees levied by the City on new construction. City ordinance restricts these revenues for use in construction, major maintenance, and debt service for park, street, drainage, and public safety facilities.
The HOME Program Fund accounts for awarded grants under the State of California Federal Home Investment Partnerships Program (HOME) for administration of the following activities: ownership rehabilitation, rental rehabilitation, augmenting the Community Development Block Grant Rehabilitation Program, a silent second down payment assistance program; and a rental assistance program.
The Housing Fund
accounts for the activities of the Housing Authority which provides and administers affordable housing programs and services to qualified residents. The Housing Authority administers Federal funds including Section 8 Housing Vouchers county-wide; Mainstream Vouchers county-wide; Continuum of Care Funds; the Local Housing Fund; the Operating Reserve Fund and the Management of Housing Authority owned properties.
The Measure T Fund
accounts for the City’s apportionment of the ½ cent sales tax through Napa County. Fund is used for the maintenance, reconstruction, and rehabilitation of local streets and roads. This fund replaces the initial Measure A, which focused on flood control.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 68 ATTACHMENT 2
The City Capital Projects Fund accounts for the City’s current construction projects, including streets, park and recreation facilities, and other major City projects. The primary sources of funds include City-levied development fees, the state gas tax, and federal and state grants.
The City reports the following major enterprise funds:
The Water Utility Fund
accounts for the operations and management of the City’s water system.
The Solid Waste and Recycling Fund accounts for administration of the City’s garbage franchise, including tipping fees, a rate stabilization fund, and other specialized services. The fund does not report the financial position or activities of the City’s franchise operator.
Additionally, the City reports the following fund types:
Internal Service Funds
– These funds account for post-employment benefits expense and liabilities, workers’ compensation and general liability coverage, management information system maintenance and replacement, and vehicle and equipment maintenance and replacement; all of which are provided to other departments on a cost – reimbursement basis.
Fiduciary Fund
– This fund is used to account for assets held by the City in a fiduciary capacity for special assessment districts. The financial activities of this fund is excluded from the City-wide financial statements but is presented in separate Fiduciary Fund financial statements. This custodial fund accounts for the bond activities of the Gasser Community Facilities District (CFD). The CFD was established September 5, 2017 for the purpose of constructing public roads, bridge, water quality improvements, drainage improvements, and water system improvements along Soscol Canyon Road. The CFD levies an annual special tax for repayment of the bond.
D. Basis of Accounting
The government-wide, proprietary and fiduciary fund statements are reported using the full accrual basis of accounting. The government-wide, proprietary and fiduciary fund statements use the economic resources measurement focus. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end with the exception of grant revenues and sales tax revenues. Grant revenues and sales tax are considered to be available if collected within 90 days of the end of the current fiscal year.
Revenues susceptible to accrual include taxes, intergovernmental revenues, charges for services and interest revenue. Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. Revenue from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under leases are reported as other financing sources. Those revenues susceptible to accrual at both the City-wide and fund level are property, sales and franchise taxes, current service charges, and interest revenue. Fines, licenses and permits are not susceptible to accrual because they are not measurable until received in cash.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 69 ATTACHMENT 2
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.
Certain indirect costs are included in program expenses reported for individual functions and activities.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are exchange or exchange-like transactions between functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and internal service funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system.
Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non- operating revenues and expenses.
Fiduciary Funds of the City are reported on the accrual basis of accounting in the Fiduciary Fund Financial Statements. Fiduciary fund financial statements account for the bond activities of the Gasser Community Facilities District (CFD).
E. Budgetary Information
1. Budgetary Basis of Accounting
The City budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all governmental funds except for Public Infrastructure Program Special Revenue Fund, Opioid Settlement Special Revenue Fund, and Departmental Special Revenue Fund related to state and federal grants, and Capital Projects Fund. The City does not adopt an appropriated budget for the Public Infrastructure Program Special Revenue Fund since projects are unknown in advance. The State and Federal Grant Special Revenue Funds do not have an appropriated budget since there are other means to control the use of these resources (e.g., grant awards and endowment requirements) and sometimes span a period of more than one fiscal year. The Capital Projects Fund is appropriated on a project -length basis rather than fiscal year, and therefore, are not comparable on an annual basis. The effects of these differences are shown as capital outlay in the budget and actual statements. Budgetary comparisons presented in this report are on this budgetary basis and reflect applicable amendments and revisions.
The budget is prepared by fund and by program within each department. Department managers may make transfers of appropriations within a department, except for personnel-related budgets, which require City Manager approval. Budget adjustments between funds or for CIP projects require City Council approval. The level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. Expenditures above the appropriated amount require approval by the City Council.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 70 ATTACHMENT 2
Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. Appropriations in all budgeted funds lapse at the end of the fiscal year even if they have related encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e., purchase orders, contracts, and commitments).
While all appropriations and encumbrances technically lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are reappropriated and become part of the subsequent year’s budget pursuant to state regulations, and the encumbrances are automatically reestablished in the following fiscal year.
2. Excess of Expenditures over Appropriations
a.
Expenditures Exceeding Appropriations
For the year ended June 30, 2025, expenditures exceeded appropriations in the following funds by function/ department:
Fund Functional Area Excess
General Fund Debt Service:
Principal $ 1,683,321
Interest and fiscal charges 136,681
City council 12,290
Capital outlay 2,701,515
Housing Debt Service:
Principal 4,185
Public Infrastructure Program Fund Special Revenue Fund Public works 128 Property and Business Improvement Special Revenue Fund Community development 30,569 Gas Tax Public works 276
Encampment Resolution Grant Special Revenue Fund Debt Service:
Principal 2,016,704
Interest and fiscal charges 83,296
Golf Special Revenue Fund Parks and recreation 34,551
City Capital Projects Fund Public works 3,136,236
F. Cash and Investments
The City maintains a cash and investment pool, which includes unrestricted cash balances and authorized investments for all funds. Highly liquid market investments with maturities of one year or less at time of purchase are carried at amortized cost. All other investments are carried at fair value. The fair value of pooled investments is determined annually and is based on current market prices. The fair value of the funds’ position in the pool is the same as the value of the pool shares. The method used to determine the value of a fund’s equity withdrawn is based on the book value of the fund’s percentage participation at the date of such withdrawal. In the event that a certain fund overdraws its share of pooled cash, a short-term inter-fund loan transaction is recorded to offset the overdraft.
For purposes of the statement of cash flows, cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. With respect to cash and investments with fiscal agents, all investments have an original maturity of less than three months and are considered to be cash equivalents.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 71 ATTACHMENT 2
Cash and investments restricted by various long-term debt bond covenants are reported as restricted cash and investments in the enterprise funds. Cash and investments held in a Pension Stabilization Trust are reported as restricted cash and investments in the internal service fund.
GASB Statement No. 72, Fair Value Measurement and Application, provides guidance for determining a fair value measurement for reporting purposes and applying fair value to certain investments and disclosures related to all fair value measurements. The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
G. Property Taxes
The County of Napa (the “County”) is permitted by State Law (Proposition 13) to levy taxes at 1% of the full fair value of the property (at the time of purchase) and can increase the assessed property valuation by no more than 2% per year. The County levies property taxes limited to $1 per $100 of assessed valuation for county, cities, schools and special districts’ operating expenditures. This property tax levy is distributed to the different governmental agencies under the State-mandated alternate method of apportioning taxes (commonly referred to as the “Teeter Plan”) whereby all local agencies with historical tax delinquency rates less than 3%, including cities, receive from the County 100% of their respective shares of the amount of ad valorem taxes levied, without regard to the actual collection of taxes levied. This method was placed in effect by the City and the County in the 1993– 1994 tax year and remains in effect until the County Board of Supervisors orders its discontinuance.
City property tax revenues are recognized when levied to the extent that the measurable and available criteria have been met. Property taxes become an enforceable lien on property as of March 1; taxes are levied on July 1; taxes are payable in two installments on November 1 and February 1; taxes become delinquent on December 10 and April 10. The County bills and collects the property taxes and remits them to the City.
H. Inventories
Inventory in the governmental funds are for resale and stated at the lower of its weighted average cost or fair value.
I. Long-Term Loan Receivable
Long-Term loan receivable, which consist of the principal amount of the loan plus the accrued borrower's deferred interest is reported in the Governmental Fund statements with offsetting unavailable revenue as resources are not available for expenditure. Long-term loans receivable report in the governmental activities on the Government - Wide Statement of Net Position is not offset by unavailable revenue as it is recorded on an accrual basis at its net realizable value based on an estimate of uncollectible amounts for loan losses.
The Governmental Funds report unavailable revenues from notes and loans receivable as a deferred inflow of resources. These amounts are recognized or reported as revenues in the period that the amounts become available.
J. Prepaid Items
Payments made to vendors for services that will benefit periods beyond June 30, are recorded as prepaid items, and in governmental fund financial statements are offset equally by nonspendable fund balance, which indicates that they are not in spendable form. Prepaid items are reported under the consumption method, which recognizes the expenditure/expense in the period associated with the goods consumed or the services rendered.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 72 ATTACHMENT 2
K. Leases
1. Lessee
The City has a policy to recognize a lease liability and a right -to-use lease asset (lease asset) in the government - wide financial statements. The City recognizes lease liabilities with an initial, individual value of $25,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.
Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. • The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported as right to use along with other capital assets and lease liabilities are reported with long- term debt on the statement of net position.
2. Lessor
The City is a lessor for leases of special purpose facilities, office and commercial space, and land. The City recognizes leases receivable and deferred inflows of resources in the financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.
Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. • The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 73 ATTACHMENT 2
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
L. Subscription-Based Information Technology Arrangements (SBITAs) The City has a policy to recognize a SBITA liability and a right -to-use subscription asset (SBITA asset) in the financial statements with an initial, individual value of $25,000 or more with a subscription term greater than one year.
At the commencement of a subscription, when the subscription asset is placed into service, the SBITA liability is measured at the present value of payments expected to be made during the subscription term. Future subscription payments are discounted using the City's incremental borrowing rate and the City recognizes amortization of the discount on the subscription liability as interest expense in subsequent financial reporting periods.
SBITA assets are measured as the sum of the initial subscription liability, payments made to the SBITA vendor before the commencement of the lease term, and capitalizable implementation costs less any incentives received from the SBITA vendor at or before the commencement of the subscription term. Subscription assets are amortized using the straight-line method over the subscription term.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
• The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs.
• The subscription term includes the period during which the City has a noncancelable right to use the underlying IT asset. The subscription term also includes periods covered by an option to extend if it is reasonably certain to be exercised.
• Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option years that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of a subscription and will remeasure any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.
Right-to-use subscription assets are reported along with other capital assets and subscription liabilities are reported as long-term debt on the statement of net position.
M. Capital Assets
Capital assets, which include land, buildings, improvements, equipment, and infrastructure (e.g. roads, bridges, sidewalks, and similar items), are reported on the government-wide Statement of Net Position. Capital assets used in enterprise and internal service funds are also reported on those Fund Financial Statements. Since the governmental funds report only current, available resources on their Fund Financial Statements, capital outlay in those funds is reported as an expenditure and not as an asset on the balance sheet.
Capital assets are recorded at cost. The City has set the capitalization threshold for reporting general capital assets at $5,000 and infrastructure at $25,000 with a useful life of more than one year. Donated assets are recorded at acquisition value at the date of donation. Capital assets acquired under leases are recorded at the net present value of the future minimum lease payments.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 74 ATTACHMENT 2
Major outlays for capital assets are capitalized as projects are constructed.
Depreciation and amortization on recorded capital assets is expensed on the straight-line method over the following estimated useful lives:
Asset Type Years
Buildings and improvements 15 - 60
Vehicles and equipment 3 - 7
Roads 20 - 40
Bridges 75
Cubs/Gutters/Sidewalks 30 - 50
Traffic Signals 40
Park Improvements 20 - 30
Transmission and Distribution Systems 20 - 60
Street Lights 30 - 40
Underground Utilities 30 - 40
Stormwater 30 - 40
Lease assets 3 - 10
Subscription assets 3 - 10
N. Compensated Absences
City employees may accumulate earned but unused vacation (up to a certain amount) and sick pay benefits. All annual leave is accrued when incurred and reported in the government-wide and proprietary fund financial statements. A liability for compensated absences is reported in the governmental funds only if they have matured, for example, as a result of employee resignations or retirements that are currently payable. Compensated absences are liquidated by the fund that has recorded the liability. Governmental activities compensated absences are liquidated primarily by the General Fund.
O. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Napa’s California Public Employee’s Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The General Fund and Internal Service Funds are typically used to liquidate the pension liability related to the City's governmental activities while the pension liability for Business-type activities is liquidated from the respective Enterprise Funds.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined time frames. For this request, the following time frames are used:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 75 ATTACHMENT 2
P. Other Post Employment Benefits Other Than Pensions (OPEB) For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Napa’s California Public Employee’s Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The General Fund and Internal Service Funds are typically used to liquidate the pension liability related to the City's governmental activities while the pension liability for Business-type activities is liquidated from the respective Enterprise Funds.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined time frames. For this request, the following time frames are used:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Q. Net Position
Net position is the excess of the City’s assets and deferred outflows over all its liabilities and deferred inflow. Net position is divided into three captions on the Statement of Net Position.
These captions apply only to net position, which is determined at the government-wide level and proprietary funds and are described below:
Net Investment in Capital Assets
describes the portion of net position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.
Restricted
describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include bond proceeds received for use on capital projects, debt service requirements, and special revenue programs subject to limitations regulations and laws underlying such programs.
Unrestricted
describes the portion of net position which is not restricted as to use.
R. Fund Balance
The City’s fund balances are classified based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to these purposes, it may be necessary to report a negative unassigned fund balance. Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendable
represents balances set aside to indicate items that do not represent available, or spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 76 ATTACHMENT 2
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.
Committed fund balances have constraints imposed by formal action (i.e. resolution) of the City Council which may be altered only by the same formal action of the City Council.
Assigned
fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. The Finance Director is designated the authority by the Council adopted Fiscal Policy to “assign” amounts to be used for specific purposes.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned.
This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
S. Use of Estimates
The accompanying basic financial statements have been prepared in accordance with U.S. GAAP. This requires management to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
T. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will, when applicable, report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until that time.
In addition to liabilities, the statement of financial position or balance sheet will, when applicable, report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
U. Implementation of New GASB Pronouncements
For the Year Ended June 30, 2025
The requirements of the following accounting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2025. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.
GASB Statement No. 101, Compensated Absences
The requirements of this Statement will improve financial reporting by implementing a unified recognition and measurement model that will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. Establishing the unified model will result in consistent application to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave. This Statement will also result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences. See Note 18 for details on restatements related to this pronouncement.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 77 ATTACHMENT 2
NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Violations of Legal or Contractual Provisions
Note .1.E.2, on the excess of expenditures over appropriations on page 71, describes a budgetary violation that occurred for the year ended June 30, 2025.
B. Fund Balance/Net Position Deficits
At June 30, 2025, the following funds had a fund balances (deficit) or unrestricted net position (deficit):
Fund Fund Type Deficit
Property and Business Improvement Fund Special Revenue Fund $ 116 Permanent Local Housing Allocation Fund Special Revenue Fund 63,061 Golf Fund Special Revenue Fund 1,427,741
Community Development Block Grant Fund Special Revenue Fund 201,569 The Special Revenue Funds deficits are expected to be eliminated by future grant revenues, intergovernmental, and charges for services.
NOTE 3: CASH AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. This pooled cash is invested in an effort to enhance interest earnings while minimizing exposure to risk.
The pooled interest earned is allocated to the funds based on cash and investment balances in these funds at the end of each monthly accounting period.
A. Deposits
The California Government Code requires California financial institutions to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name. The fair value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
Cash and investments as of June 30, 2025, are classified in the accompanying financial statements as follows:
Statement of Net Position
Cash and investments - Governmental and Business-type activities $ 346,282,719 Restricted cash and investments 10,092,414
Restricted cash with fiscal agents 980
Total City cash and investments 356,376,113
Statement of Fiduciary Net Position
Cash and investments available for operations in Fiduciary Funds 1,170,291 Restricted cash and investments in Fiduciary Funds 1,199,466 Total cash and investments $ 358,745,870
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
78 ATTACHMENT 2
B. Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types authorized under the provisions of the City's investment policy, and in accordance with the California Government Code. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of the debt agreements of the City.
Minimum Maximum Maximum
Maximum Credit in Investment
Authorized Investment Type Maturity Quality Portfolio in One Issuer U.S. Treasury Bonds, Notes and Bills 5 Years N/A None None U.S. Government Agency and U.S. Government -
Sponsored Enterprise Obligations
5 Years N/A None None
State of California or Other Local Agency 5 Years N/A None 5% Registered Treasury Notes or Bonds 5 Years N/A None 5%
Bankers' Acceptances 180 Days A-1, P-1 30% Lessor of $2,000,000 or 5% (whichever is lower)
Certificate of Deposit (Time Deposit) 2 Years * None 250,000 Negotiable Certificates of Deposit 5 Years A, A-1 30% 5% regardless of sector Commercial Paper 270 Days A 40% until 1/1/26, 25%
thereafter
5% regardless of sector
Medium-Term Notes 5 Years A 30% 5% regardless of sector State of California Local Agency Investment Fund
(LAIF Pool)
Upon
Demand
N/A
Maximum Amount permitted
by LAIF Advisory Board
N/A
Repurchase Agreements 30 Days N/A 20% 20%
Money Market Mutual Funds N/A ** 20% 10%
California Asset Management Program N/A N/A None None
Asset Backed Securities 5 Years AA 20% 5% regardless of sector Supranationals 5 Years AA 30% 5% regardless of sector
* Collateralization must comply with statutory requirements ** Highest rating provided by not less than two nationally recognized rating services C. Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by the bond trustee.
Authorized Investment Type Maximum Maturity Minimum Credit Rating U.S. Treasury Bonds, Notes and Bills None N/A
U.S. Government Agency Obligations None Aaa or AAA for Senior Debt obligations issued by Fannie Mae or FHLMC
Federal Securities None N/A
Bankers' Acceptances no more than 360 days A-1, P-1
Commercial Paper no more than 1 year N/A
Certificates of Deposit 30 days or less A
Repurchase Agreements N/A Not Rated
Local Agency Investment Fund no more than 5 years N/A
Money Market Funds N/A AAAm, AAAm-G
Bonds or Notes issued by State or Municipal Governments None One of the two highest ratings categories by S&P Shares in a California Common Law Trust N/A N/A
Prefunded Municipal Obligations None AAA
State Obligations None A
State Obligations - Direct Short-Term None A-1
State Obligations - Special Revenue Bonds None AA
*Collateralization must comply with statutory requirements **Higher rating provided by not less than two nationally recognized rating services
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
79 ATTACHMENT 2
D. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates may adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to change in market interest rates. The City manages its exposure to interest rate risk by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments as of June 30, 2025, by maturity:
Less than One One to Three Three to Five
Investment Type Year Years Years Total
Local Agency Investment Fund $ 49,856,829 $ - $ - $ 49,856,829 Certificate of Deposit - 5,015,893 - 5,015,893
U.S. Treasury Notes - 49,155,919 48,852,310 98,008,229 Municipal Bond/Note - 238,778 - 238,778
Corporate Notes - 21,235,322 23,582,294 44,817,616
Money Market Funds (U.S. Securities) 65,897,420 - - 65,897,420 Federal Agency Securities - 15,133,035 16,152,850 31,285,885 Asset Backed Security 658,260 6,349,236 22,637,558 29,645,054 Bank Note - 2,681,264 - 2,681,264
Total Investments $ 116,412,509 $ 99,809,447 $ 111,225,012 327,446,968 Cash and investment with fiscal agents* 11,292,860
Cash in banks and on hand 20,006,042
Total Cash and Investments $ 358,745,870
*Cash and investments with fiscal agent represents Gasser CFD ($1.2 million) and PARS IRC Section 115 Trust ($10.1 million), Proprietary Debt Service ($980) and Housing Authority Self Sufficiency ($257 k).
E. Disclosures Relating to Credit Risk
Credit risk is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City's investments are rated as follows:
Moody's Rating as of Fiscal Year End
Investment Type AAA AA+/AA/AA- A/A+/A-/BBB+ Total
Held by Trustee:
Certificate of Deposit $ - $ - $ 5,015,893 $ 5,015,893
Corporate Notes 305,034 10,966,635 33,545,947 44,817,616 Money Market Funds 2,593,088 - - 2,593,088
Federal Agency Securities - 31,285,886 - 31,285,886 Asset Backed Security 21,843,736 - - 21,843,736
Bank Note - - 2,681,264 2,681,264
Total $ 24,741,858 $ 42,252,521 $ 41,243,104 108,237,483 Local Agency Investment Fund $ 49,856,829
Asset Backed Security 7,801,318
Municipal Bond/Notes 238,778
Money Market Funds 63,304,332
Exempt from credit rating disclosure:
U.S. Treasury notes 98,008,228
Cash and investment with fiscal agents* 11,292,860
Cash in banks and on hand 20,006,042
Total Cash and Investments $ 358,745,870
*Cash and investments with fiscal agent represents Gasser CFD ($1.2 million) and PARS IRC Section 115 Trust ($10.1 million), Proprietary Debt Service ($980) and Housing Authority Self Sufficiency ($257 k).
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
80 ATTACHMENT 2
F. Investment in Local Agency Investment Funds
The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2025 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:
Structured Notes
are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.
Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2025, the City had $49,856,829 invested in LAIF, which had invested 1.86% of the pool investment funds in Structured Notes and Asset-Back Securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where fair value is not readily available. The City valued its investments in LAIF as of June 30, 2025, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants’ total aggregate amortized cost by total aggregate fair value. The fair value of the City’s position in the pool is the same as the value of the pool shares.
The credit quality rating of LAIF is unrated as of June 30, 2025.
G. Investment Held in Public Agencies Retirement Services (PARS) Trust During the year ended June 30, 2017, the City established an irrevocable trust with PARS for the purpose of accumulating additional resources restricted for retirement benefits. PARS is the trust administrator while the City, as the plan administrator, is responsible to provide direction on the usage and distribution of the funds held in the PARS Trust. During the year ended June 30, 2025, the City contributed no funds to the PARS Trust. At June 30, 2025, the total amount accumulated in the PARS Trust was $10,092,414.
H. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows:
Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
Level 2 – Inputs, other than quoted prices included in Level 1, which are observable for the assets or liabilities through corroboration with market data at the measurement date.
Level 3 – Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
81 ATTACHMENT 2
The City had the following recurring fair value measurements as of June 30, 2025:
Investment Type Total Level 1 Level 2 Uncategorized
Local Agency Investment Fund $ 49,856,829 $ - $ - $ 49,856,829 Certificate of Deposit 5,015,893 - - -
U.S. Treasury Notes 98,008,228 98,008,228 - -
Bank Notes 2,681,264 - 2,681,264
Municipal Bond/Notes 238,778 - - -
Corporate Notes 44,817,616 - - -
Money Market Funds (U.S. Securities) 65,897,420 - - 65,897,420 Federal Agency Securities 31,285,886 - - -
Asset Backed Security 29,645,054 - - -
Cash and Deposits 31,298,902 - - 31,298,902
Total $ 358,745,870 $ 98,008,228 $ 2,681,264 $ 147,053,151 Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities.
Debt and equity securities classified in Level 2 are valued using the following approaches:
• Certificates of Deposit: quoted market prices for identical securities in markets that are not active; and • Federal Government Agency Securities, Supranational Agency Bonds/Notes, Municipal Bonds/Notes, Corporate Notes, and Asset-Backed Securities: matrix pricing model
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
82 ATTACHMENT 2
NOTE 4: LEASE RECEIVABLE
A. Governmental Activities
A portion of the City’s property is leased to others. Such property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with others for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 2 to 15 years. The calculated interest rates used vary depending on the length of the lease from 0.56% to 1.81%. For the fiscal year ended June 30, 2025, the City recognized $63,612 in lease revenue and $3,601 in interest revenue.
A summary of changes in lease receivable for the fiscal year ended June 30, 2025 is as follows:
Balance Balance Due within
July 1, 2024 Additions Deletions June 30, 2025 One Year Leases receivable $ 273,562 $ 30,193 $ 62,644 $ 241,111 $ 67,455 As of June 30, 2025, the required payments for these leases, including interest, are:
Year Ending
June 30, Principal Interest Total
2026 $ 67,455 $ 2,797 $ 70,252
2027 68,624 1,948 70,572
2028 49,071 1,106 50,177
2029 2,008 864 2,872
2030 2,096 833 2,929
2031-2035 11,897 3,651 15,548
2036-2040 14,513 2,654 17,167
2041-2045 17,510 1,444 18,954
2046-2047 7,937 185 8,122
Total $ 241,111 $ 15,482 $ 256,593
As of June 30, 2025, the amounts reported as deferred inflows of resources will be recognized as lease revenue as follows:
Year Ending Amortization
June 30, Schedule
2026 $ 168,612
2027 167,056
2028 148,215
2029 107,697
2030 107,697
2031-2035 538,487
2036-2040 538,487
2041-2045 538,487
2046-2047 257,796
Total $ 2,572,534
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 4: LEASE RECEIVABLE
83 ATTACHMENT 2
B. Business-Type Activities
A portion of the City’s property is leased to others. Such property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with others for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 2 to 12 years. The calculated interest rates used vary depending on the length of the lease from 0.56% to 1.81%. For the fiscal year ended June 30, 2025, the City recognized $241,111 in lease revenue and $15,482 in interest revenue.
A summary of changes in lease receivable for the fiscal year ended June 30, 2025 is as follows:
Balance Balance Due within
July 1, 2024 Additions Deletions June 30, 2025 One Year Leases receivable $ 1,228,978 $ - $ 153,695 $ 1,075,283 $ 107,625 As of June 30, 2025, the required payments for these leases, including interest, are:
Year ending, June 30 Principal Interest Total
2026 $ 107,625 $ 24,736 $ 132,361
2027 96,001 22,738 118,739
2028 101,669 20,612 122,281
2029 107,588 18,343 125,931
2030 113,770 15,925 129,695
2031-2035 484,828 40,647 525,475
2036 63,802 945 64,747
Total $ 1,075,283 $ 143,946 $ 1,219,229
As of June 30, 2025, the amounts reported as deferred inflows of resources will be recognized as lease revenue as follows:
Year Ending Amortization
June 30, Schedule
2026 $ 121,001
2027 105,427
2028 105,427
2029 105,427
2030 105,427
2031-2035 384,345
2036 40,259
Total $ 967,313
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 4: LEASE RECEIVABLE (CONTINUED)
84 ATTACHMENT 2
NOTE 5: LOANS RECEIVABLE
The City has extended long-term loans to support affordable housing and economic development. All loans are secured by real estate. Since some of these loans are secured by trust deeds which are subordinated to other debt on the associated projects or are only repayable from residual cash receipts on the projects, collectability of some of the outstanding balances may not be realized. As a result, a portion of the outstanding balances of the loans has been offset by a valuation allowance. These long-term loans receivable consisted of the following at June 30, 2025:
Outstanding
Term Interest Balance at
Description (Years) Rate June 30, 2025
Notes and Loans Receivable
General Fund 15-30 0-4% $ 293,339
Development Fees Fund 10-55 0-3.5% 8,655,968
HOME Program 20-30 3.0% 8,731,819
Housing Fund:
Laurel Manor 35 3.5% 419,000
Local Housing Fund various 7.0% 59,399
20% Low and Moderate Incoming Housing 30-60 0-4% 9,772,152 RDA Supplemental - Bain, Thomas -% 174,080
Other Governmental Funds:
CDBG Housing Rehabilitation Program 20 2-10% 2,222,557 CDBG Nonprofit CIP Program 55 3.0% 2,386,392
CalHome Grant 5 3.0% 1,663,914
Total Notes and Loans Receivable $ 34,378,620
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 5: LOANS RECEIVABLE
85 ATTACHMENT 2
NOTE 6: INTERFUND TRANSACTIONS
A. Due To/ From Other Funds
Amounts due to and due from other funds at June 30, 2025, were as follows:
Receivable Fund Payable Fund Amount Purpose
General Fund RMRA Special Revenue Fund $ 97,488 Overdrawn Cash General Fund Golf Course Special Revenue Fund 64,247 Overdrawn Cash General Fund Development Fees Special Revenue Fund 4,111 Overdrawn Cash General Fund Public Safety Programs Special Revenue Fund 110 Overdrawn Cash General Fund Community Development Block Grant Special Revenue Fund 642,621 Overdrawn Cash General Fund Assessment District Special Revenue Fund 3,122 Overdrawn Cash General Fund Business Districts Special Revenue Fund 2,077 Overdrawn Cash General Fund Property and Business Improvement Special Revenue Fund 1,051 Overdrawn Cash General Fund Departmental Special Revenue Fund 307,178 Overdrawn Cash General Fund Housing Special Revenue Fund 4,003,886 Overdrawn Cash General Fund Water Utility Enterprise Fund 3,861,244 Overdrawn Cash General Fund Solid Waste & Recycling Enterprise Fund 797,834 Overdrawn Cash General Fund Fleet Internal Service Fund 1,217,821 Overdrawn Cash Total $ 11,002,790
B. Long-Term Advances
At June 30, 2025 the fund below had made an advance that is not expected to be repaid within the next year. This long-term interfund advance is expected to be repaid when sufficient cash is available in the borrowing fund.
Advances To Advances From Amount Purpose
General Fund Golf Course Special Revenue Fund $ 482,850 Fund Golf Capital Projects General Fund Development Fees Special Revenue Fund 1,805,122 Fund Fire Station 5 Development Fees Special
Revenue Fund
Golf Course Special Revenue Fund 183,600 Fund Golf Course Water Irrigation Surcharge City Capital Projects Fund Golf Course Special Revenue Fund 675,000 Fund Golf Capital Projects City Capital Projects Fund Development Fees Special Revenue Fund 1,267,441 Fund Fire Station 5 Total $ 4,414,013
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 6: INTERFUND TRANSACTIONS
86 ATTACHMENT 2
C. Transfers
Transfers report the contribution of resources from one fund to another. The following is a summary of transfers for the year ended June 30, 2025:
Transfers In Transfers Out Amount Purpose
General Fund City Capital Projects Fund $ 67,416 Citywide overhead General Fund Assessment District Fund 10,930 Citywide overhead General Fund CAL Home Grant Fund 3,130 Citywide overhead General Fund Development Fees Fund 62,280 Citywide overhead General Fund Enhanced Infrastructure Financing District Fund 50,170 Citywide overhead General Fund Gas Tax Fund 4,270 Citywide overhead
General Fund Housing Fund 618,290 Citywide overhead
General Fund Measure F Fund 25,340 Citywide overhead
General Fund Parking Fund 68,370 Citywide overhead
General Fund Road Maintenance and Rehabilitation Fund 15,900 Citywide overhead General Fund Solid Waste and Recycling Fund 938,010 Citywide overhead General Fund Traffic Fund 680 Citywide overhead
General Fund Water Utility Fund 3,297,190 Citywide overhead Subtotal 5,161,976
Measure T Fund City Capital Projects Fund 17,944,855 Redistribution Subtotal 17,944,855
Development Fees Fund City Capital Projects Fund 6,860,676 Redistribution Subtotal 6,860,676
City Capital Projects Fund Gas Tax Fund 1,350,000 Capital projects City Capital Projects Fund General Fund 5,722,615 Capital projects City Capital Projects Fund General Fund 2,294,612 Capital projects City Capital Projects Fund General Fund 2,589,224 Capital projects City Capital Projects Fund General Fund 100,000 Capital projects City Capital Projects Fund Measure T Fund 1,000,000 Capital projects City Capital Projects Fund Road Maintenance and Rehabilitation Fund 2,300,000 Capital projects City Capital Projects Fund Solid Waste and Recycling Fund 1,250,000 Capital projects Subtotal 16,606,451
Aggregate Non-Major Funds City Capital Projects Fund 6,334,991 Redistribution Subtotal 6,334,991
Fleet Fund Equipment Replacement Fund 60,000 Fleet/Equipment Risk Management Fund City Capital Projects Fund 262,257 Redistribution Post Employment Benefits Fund General Fund 1,250,000 Fund internal services Subtotal 1,572,257
Total $ 54,481,206
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 6: INTERFUND TRANSACTIONS (CONTINUED)
87 ATTACHMENT 2
NOTE 7: CAPITAL ASSETS
A. Governmental Activities
Governmental activities capital assets activity for the year ended June 30, 2025 was as follows:
Balance
July 1, 2024 Adjustments* Transfers Additions Deletions Balance
June 30, 2025
Capital assets, not being depreciated/
amoritzed:
Land $ 33,395,501 $ - $ - $ - $ - $ 33,395,501
Construction in progress 38,856,026 (214,858) (3,551) 24,575,338 - 63,212,955 Total capital assets, not being
depreciated/amortized 72,251,527 (214,858) (3,551) 24,575,338 - 96,608,456 Capital assets, being depreciated/amoritzed:
Infrastructure 628,822,234 - - - - 628,822,234
Buildings and improvements 59,038,918 12,467 - - - 59,051,385 Improvements, other than buildings 220,189 (12,467) - - - 207,722 Machinery and equipment 42,146,008 29,440 3,551 2,903,601 - 45,082,600 Other capital assets 306,000 - - - - 306,000
Leases
Land 989,154 - - - - 989,154
Vehicles 26,540 - - - - 26,540
Equipment 82,111 - - 86,254 - 168,365
Buildings 7,370,666 - 216,871 - 7,587,537
Total leases 8,468,471 - - 303,125 - 8,771,596
Subscriptions
Software 5,512,361 - - 1,924,028 - 7,436,389
Total subscriptions 5,512,361 - - 1,924,028 - 7,436,389 Total capital assets, being depreciated/
amortized 744,514,181 29,440 3,551 5,130,754 - 749,677,926 Less accumulated depreciation/amortization:
Infrastructure (378,505,993) - - (8,430,393) - (386,936,386) Buildings and improvements (34,574,044) 4,164 - (1,364,863) - (35,934,743) Improvements, other than buildings (147,875) 55,683 - (3,823) - (96,015) Machinery and equipment (29,337,429) (59,847) - (2,898,091) - (32,295,367) Other capital assets (306,000) - - - - (306,000)
Leases
Land (102,326) - - (34,109) - (136,435)
Vehicles (21,487) - - (5,053) - (26,540)
Equipment (61,587) - - (35,732) - (97,319)
Buildings (2,671,349) 124,393 - (2,996,173) - (5,543,129) Total leases (2,856,749) 124,393 - (3,071,067) - (5,803,423) Subscriptions
Software (1,336,100) - - (1,758,339) - (3,094,439) Total subscriptions (1,336,100) - - (1,758,339) - (3,094,439) Total accumulated depreciation/
amortization (447,064,190) 124,393 - (17,526,576) - (464,466,373) Net capital assets, being depreciated/
amortized 297,449,991 153,833 3,551 (12,395,822) - 285,211,553 Governmental activities capital assets,
net $ 369,701,518 $ (61,025) $ - $ 12,179,516 $ - $ 381,820,009 * Adjustments pertain to insignificant reclassifications from the prior year in addition to an immaterial net correction of previously capitalized lease assets and coinciding lease liability.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 7: CAPITAL ASSETS
88 ATTACHMENT 2
Depreciation and amortization expense were charged to the functions/programs of the governmental activities as follows:
General government $ 5,437,997
Public safety 876,303
Public works 8,334,755
Parks and recreation 281,734
Community development 25,638
Internal service funds 2,570,149
Total depreciation/amortization expense $ 17,526,576
B. Business-type Activities
Business-type activities capital assets activity for the year ended June 30, 2025 was as follows:
Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
Capital assets, not being depreciated/amortized
Land $ 5,289,459 $ - $ - $ 5,289,459
Construction-in-progress 11,904,149 17,654,481 - 29,558,630 Total capital assets, not being depreciated/
amortized 17,193,608 17,654,481 - 34,848,089
Capital assets, being depreciated/amortized:
Infrastructure 98,791,024 - - 98,791,024
Buildings and improvements 104,549,159 - - 104,549,159 Improvements, other than buildings 72,593 - - 72,593 Machinery and equipment 10,008,598 140,824 - 10,149,422 Other capital assets 5,992,000 - - 5,992,000
Leases
Buildings 1,276,243 - - 1,276,243
Subscriptions
Software 527,826 46,652 - 574,478
Total capital assets, being depreciated/amortized 221,217,443 187,476 - 221,404,919 Less accumulated depreciation/amortization
Infrastructure (61,716,809) (2,017,358) - (63,734,167) Buildings and improvements (54,696,425) (3,467,022) - (58,163,447) Improvements, other than buildings (3,751) (4,840) - (8,591) Machinery and equipment (7,143,906) (521,960) - (7,665,866) Other capital assets (3,440,257) (230,751) - (3,671,008) Leases
Buildings (212,707) (212,707) - (425,414)
Subscriptions
Software (109,578) (113,504) (223,082)
Total accumulated depreciation/amortization (127,323,433) (6,568,142) - (133,891,575) Net capital assets, being depreciated/amortized 93,894,010 (6,380,666) - 87,513,344 Business-type activities capital assets, net $ 111,087,618 $ 11,273,815 $ - $ 122,361,433
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 7: CAPITAL ASSETS (CONTINUED)
89 ATTACHMENT 2
Depreciation/amortization expenses for business-type activities for the year ended June 30, 2025 are as follows:
Water Utility $ 4,930,254
Solid Waste and Recycling 1,637,888
Total depreciation/amortization expense $ 6,568,142
NOTE 8: LONG-TERM DEBT
A. Current Year Transactions and Balances
The following table summarizes the changes in the City’s long-term debt and other non-current liabilities during the year ended June 30, 2025:
Original Balance Balance Due Within
Issue Amount June 30, 2024 Additions Deletions June 30, 2025 One Year Governmental activities
California Energy Commission
(LED) Streetlights) due 6/1/2027 $ 1,442,767 $ 378,836 $ - $ (125,022) $ 253,814 $ 126,275 Seminary Street, 5.5%, due
7/31/2027 1,244,000 255,802 - (78,710) 177,092 85,707 CDBG Laurel Manor 700,000 371,002 - (35,413) 335,589 36,144 Lease liability 8,771,596 5,691,759 802,222 (2,200,525) 4,293,456 2,213,704 Subscription liability 4,464,307 3,124,157 1,924,028 (1,522,013) 3,526,172 1,245,910 Total governmental activities $ 9,821,556 $ 2,726,250 $ (3,961,683) $ 8,586,123 $ 3,707,740 Business-type activities
2016 Water Revenue Bonds due
5/1/2035 $ 43,505,000 $ 27,740,000 $ - $ (2,285,000) $ 25,455,000 $ 2,315,000 plus: bond premium - 2,596,411 - (236,037) 2,360,374 - 2016 Solid Waste Revenue Bonds
due 8/1/2036 12,500,000 9,130,000 - (595,000) 8,535,000 610,000 less: bond discount - (42,513) - 3,544 (38,969) - Lease liability 1,276,243 1,090,477 - (194,023) 896,454 205,553 Subscription liability 518,166 385,594 46,652 (116,795) 315,451 90,506 Total business-type activities $ 40,899,969 $ 46,652 $ (3,423,311) $ 37,523,310 $ 3,221,059 B. California Energy Commission Loan
The City received a State Loan of $1.4 million at an annual interest rate of 1.0%, to be repaid in semi-annual payments over 12 years. The note proceeds were applied towards upgrading the street lights to energy efficient LED streetlights. The replacement of the streetlights was completed in October 2014 and disbursement was received by the City in December 2014. In the event of any default or breach, the Promissory Note states that the loan is immediately due and payable.
Principal and interest payments to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2026 $ 126,275 $ 2,224 $ 128,499
2027 127,539 958 128,497
Total $ 253,814 $ 3,182 $ 256,996
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 7: CAPITAL ASSETS (CONTINUED)
90 ATTACHMENT 2
C. Housing Authority Notes Payable
Seminary Street – In September 1998, the City of Napa Housing Authority borrowed $714,000 from a local bank to finance the acquisition of a commercial office building to house the Authority and another tenant. During the year ended June 30, 2003, additional bank credit was extended to finance major renovations to the building for a net increase of $530,000. The loan was converted to permanent financing with a monthly amortization schedule through 2027 at an annual interest rate of 5.5%. In the event of default, the variable interest rate on this note will increase by 4% points, also the entire unpaid principal balance and all accrued unpaid interest is due immediately.
Principal and interest payments to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2026 $ 85,707 $ 10,393 $ 96,100
2027 91,385 3,737 95,122
Total $ 177,092 $ 14,130 $ 191,222
Laurel Manor Rehabilitation Loan – In November 2012, the City of Napa Housing Authority borrowed $700,000, payable over 20 years at an annual interest rate of 2.04%, from the City of Napa CDBG Housing Rehabilitation Program to help finance $2.7 million in improvements to the Laurel Manor senior housing complex. In the event that the property rehabilitated with the assistance of this loan, is sold, conveyed or alienated, the entire remaining principal and accrued interest balance is immediately due and payable.
Principal and interest payments to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2026 $ 36,144 $ 6,509 $ 42,653
2027 36,889 5,765 42,654
2028 37,648 5,005 42,653
2029 38,423 4,230 42,653
2030 39,215 3,439 42,654
2031-2035 147,270 5,573 152,843
Total $ 335,589 $ 30,521 $ 366,110
D. Leases Liability
Governmental Activities
The City has entered into leases for building space and equipment use. The terms of the agreements range from 3 to 29 years. The calculated annual interest rates of 0.56% to 2.63% varied based on the length of the lease.
As of June 30, 2025, the capitalized right-to-use assets related to leases were $8,771,596 and the total lease liability was $4,293,456, of which $2,213,704 is reported as a current liability representing the amount due within the next fiscal year.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 8: LONG-TERM DEBT (Continued)
91 ATTACHMENT 2
Principal and interest payments to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2026 $ 2,213,704 $ 78,757 2,292,461
2027 157,812 45,179 202,991
2028 162,634 41,097 203,731
2029 156,827 36,893 193,720
2030 161,584 32,906 194,490
2031-2035 740,126 102,082 842,208
2036-2040 175,437 54,449 229,886
2041-2045 217,028 36,785 253,813
2046-2050 308,304 15,051 323,355
Total $ 4,293,456 $ 443,199 $ 4,736,655
Business-Type Activities
The City has entered into a lease for building space. The terms of the agreement is 6 years. The calculated annual interest rate is 2.63% based on the length of the lease.
As of June 30, 2025, the capitalized right-to-use assets related to leases were $1,276,243 and the total lease liability was $896,454 of which $205,553 is reported as a current liability representing the amount due within the next fiscal year.
Principal and interest payments to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2026 $ 205,553 $ 21,111 $ 226,664
2027 217,579 15,560 233,139
2028 230,122 9,688 239,810
2029 243,200 3,479 246,679
Total $ 896,454 $ 49,838 $ 946,292
E. Subscription Liability
Governmental Activities
The City has entered into subscription-based information technology arrangements (SBITAs) for services related to cloud-based software applications, data storage and management services. Under the terms of these arrangements, the City does not take possession of the software at any time and the vendor provides ongoing services for the software's operation. The subscription periods vary, with initial non-cancellable terms ranging from 2 to 7 years. The calculated interest rate used was between 2.28% to 2.63%, depending on the length of the SBITA and date of the agreement.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 8: LONG-TERM DEBT (Continued)
92 ATTACHMENT 2
As of June 30, 2025, the capitalized right-to-use assets related to SBITAs were $7,436,389 and the total subscription liability was $3,526,172, of which $1,245,910 is reported as a current liability representing the amount due within the next fiscal year.
The annual debt service requirements on the subscription liability are as follows:
Year Ending
June 30, Principal Interest Total
2026 $ 1,245,910 $ 97,002 $ 1,342,912
2027 832,095 61,552 893,647
2028 805,850 38,160 844,010
2029 499,440 16,241 515,681
2030 142,877 2,022 144,899
Total $ 3,526,172 $ 214,977 $ 3,741,149
Business-Type Activities
The City has entered into SBITAs for services related to cloud-based software applications, data storage and management services. Under the terms of these arrangements, the City does not take possession of the software at any time and the vendor provides ongoing services for the software's operation. The subscription periods vary, with initial non-cancellable terms ranging from 3 to 7 years. The calculated interest rate used was between 2.28% to 2.63%, depending on the length of the SBITA and date of the agreement.
As of June 30, 2025, the capitalized right-to-use assets related to SBITAs were $574,478 and the total subscription liability was $315,451, of which $90,506 is reported as a current liability representing the amount due within the next fiscal year.
The annual debt service requirements on the subscription liability are as follows:
Year Ending
June 30, Principal Interest Total
2026 $ 90,506 $ 6,384 $ 96,890
2027 51,856 4,398 56,254
2028 53,122 3,132 56,254
2029 54,419 1,834 56,253
2030 65,548 505 66,053
Total $ 315,451 $ 16,253 $ 331,704
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 8: LONG-TERM DEBT (Continued)
93 ATTACHMENT 2
F. Water Fund Obligations
In April 2007, the City issued Series 2007 Water Revenue Bonds for the principal amount of $47,350,000. The proceeds of the sale of the bond were used to provide funding to finance improvements to the City’s water system. In February 2016 the City refunded the Series 2007 Water Revenue Bonds, and paid off other debt obligations of the Water Enterprise, through the issue of the Series 2016 Water Revenue Bonds for the principal amount of $43,505,000. The issuance of these refunding bonds resulted in cash flow savings over the life of the bonds of $8,687,419 and an economic gain (difference between the present value of the old and new debt service payments) of $6,988,512. The issuance premium is reported in long-term debt due on the balance sheet and will be amortized over 14 years (the remaining life of the bonds). As of June 30, 2025, the balance of the premium is $2,360,374. The 2016 Bonds bear interest payable bi-annually on May 1 and November 1 of each year commencing on May 1, 2016 until maturity in May 2035. Debt service is secured by a pledge of net revenues of the City’s Water System. Interest paid in the current fiscal year and the net customer revenues were $934,193 and $24,048,776, respectively. The total principal and interest remaining to be paid on the bonds is $25,455,000 and $4,533,050, respectively. Under the Indenture of Trust for the bonds, the remedies for an event of default include any remedy available under law or equity, including declaring the principal amount of any outstanding Series 2016 Bonds, together with accrued interest, to be immediately due and payable.
The pledge of future Water System Revenues ends upon repayment of the original issue amount of $43.5 million which is scheduled to occur in 2035.
Principal and interest payments to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2026 $ 2,315,000 $ 833,550 $ 3,148,550
2027 2,340,000 717,800 3,057,800
2028 2,305,000 671,000 2,976,000
2029 2,395,000 578,800 2,973,800
2030 2,490,000 483,000 2,973,000
2031-2035 13,610,000 1,248,900 14,858,900
Total $ 25,455,000 $ 4,533,050 $ 29,988,050
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 8: LONG-TERM DEBT (Continued)
94 ATTACHMENT 2
G. Solid Waste Revenue Bonds
Acquisition and construction of capital improvements at the City's Materials Diversion Facility. The 2016 Bonds bear interest payable bi-annually on February 1 and August 1 of each year commencing on February 1, 2017 until maturity in August 2036. Debt service is secured by a pledge of net revenues of the City’s Solid Waste System.
The first principal payment on the Series 2016 Solid Waste Revenue Bonds was due August 1, 2018. Interest paid in the current fiscal year and the net customer revenues were $264,689 and $6,208,401 respectively. The total principal and interest remaining to be paid on the bonds is $8,535,000 and $1,752,728, respectively. Under the Indenture of Trust for the bonds, the remedies for an event of default include any remedy available under law or equity, including declaring the principal amount of any outstanding Series 2016 Bonds, together with accrued interest, to be immediately due and payable.
In October 2016, the City issued Series 2016 Solid Waste Revenue Bonds for the principal amount of $12,500,000. The proceeds of the sale of the bond were used to provide funding to finance the costs of the pledge of future Solid Waste System Revenues ends upon repayment of the original issue amount of $12.5 million which is scheduled to occur in 2036.
Principal and interest payments to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2026 $ 610,000 $ 253,392 $ 863,392
2027 620,000 238,722 858,722
2028 635,000 221,982 856,982
2029 655,000 203,341 858,341
2030 675,000 184,123 859,123
2031-2035 3,690,000 594,558 4,284,558
2036-2037 1,650,000 56,610 1,706,610
Total $ 8,535,000 $ 1,752,728 $ 10,287,728
NOTE 9: DEBT WITH NO CITY COMMITMENT
A. Mortgage Revenue Bonds
The Housing Authority has issued the following mortgage revenue bonds to provide funds for the construction and permanent financing of multi-family housing projects. Twenty percent of units developed will be held and made available for occupancy by persons of low income. The bonds are secured by the land and housing projects. The bonds do not constitute or create a debt or pledge of the general credit or taxing power of the City and, accordingly, they are not recorded in the accompanying financial statements. The mortgage revenue bonds outstanding as of June 30, 2025, are as follows:
Original Maturity Outstanding
Year of Issue Project Borrowing Date at Year-End
Housing Authority
1999 Silverado Creek A $ 3,125,000 June 1, 2031 $ 1,134,234 2004 Magnolia Park Series 2004A 4,500,000 December 1, 2035 720,438 $ 7,625,000 $ 1,854,672
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 8: LONG-TERM DEBT (Continued)
95 ATTACHMENT 2
B. Community Facilities District
The Community Facilities District was formed and established by the City Council, as legislative body of the Community Facilities District, under the Mello-Roos Community Facilities Act of 1982, as amended, pursuant to a resolution adopted by the City Council following a public hearing, and a landowner election held on the same date at which the qualified electors of the Community Facilities District authorized the Community Facilities District to incur bonded indebtedness and approved the levy of special taxes. The bonds do not constitute or create a debt or pledge of the general credit or taxing power of the City. The Community Facilities District is located just south of the downtown area of the City, consisting of 23 parcels west of Soscol Avenue, north of Imola Avenue and south of Oil Company Road/Sousa Lane. The Community Facilities District issued debt on September 5, 2017 in the amount of $19,950,000 for the purpose of acquisition, construction, and completion of certain facilities and improvements to be owned and operated by the City. The total principal and interest remaining to be paid on the bond is respectively $17,310,000 and $8,736,991.
NOTE 10: COMPENSATED ABSENCES
A. Governmental Activities
A summary of changes in the compensated absences balances for the governmental activities for the year ended June 30, 2025 is as follows:
Balance Balance Due within One
June 30, 2024 Net Change June 30, 2025 Year
Compensated absences* $ 5,600,105 $ 1,035,273 $ 6,635,378 $ 4,452,769 *Compensated absences presented as a net change, as per the requirements of GASB No. 101, Compensated Absences B. Business-Type Activities
A summary of changes in the compensated absences balances for the business-type activities for the year ended June 30, 2025 is as follows:
Balance Balance Due within One
June 30, 2024 Net Change June 30, 2025 Year
Compensated absences* $ 864,819 $ 89,866 $ 954,685 $ 595,126 *Compensated absences presented as a net change, as per the requirements of GASB No. 101, Compensated Absences
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 9: DEBT WITH NO CITY COMMITMENT (CONTINUED)
96 ATTACHMENT 2
NOTE 11: FUND BALANCE CLASSIFICATION
Detailed classifications of the City’s Fund Balances, as of June 30, 2025, are as follows:
General
Fund
Development
Fees
HOME
Program Housing Measure T
City Capital
Projects
Non-major
Governmental
Funds
Total
Governmental
Funds
Nonspendable
Inventories $ 580 $ - $ - $ - $ - $ - $ - $ 580
Prepaid items 1,005,695 384 586 19,653 - - 1,209,754 2,236,072 Advances to other
funds 2,287,972 - - - - - - 2,287,972
Total nonspendable 3,294,247 384 586 19,653 - - 1,209,754 4,524,624 Restricted
Senate Bill (SB) 1186
reserve 392,939 - - - - - - 392,939
Designated projects
and programs
(including parking)
5,689,555 39,571,959 - - 30,142,609 16,152,192 24,471,519 116,027,834 Grants - - 420,297 - - - 159,789 580,086
Housing programs - - - 6,123,570 - - - 6,123,570 Red light camera - - - - - - 882,327 882,327
Assessment districts - - - - - - 9,789,122 9,789,122 Tourism Improvement
District (TID) - - - - - - 1,374,795 1,374,795
Total restricted 6,082,494 39,571,959 420,297 6,123,570 30,142,609 16,152,192 36,677,552 135,170,673 Committed
Emergency reserve 25,945,976 - - - - - - 25,945,976 Capital projects - - - - - 20,245,306 - 20,245,306 Total committed 25,945,976 - - - - 20,245,306 - 46,191,282 Unassigned (deficit) 23,928,197 - - - - - (2,743,560) 21,184,637 Total fund balances
$ 59,250,914 $ 39,572,343 $ 420,883 $ 6,143,223 $ 30,142,609 $ 36,397,498 $ 35,143,746 $ 207,071,216
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 11: FUND BALANCE CLASSIFICATION
97 ATTACHMENT 2
NOTE 12: EMPLOYEE RETIREMENT SYSTEM
A. Plan Description
The City’s defined benefit pension plans provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to all qualified permanent and probationary employees and their beneficiaries eligible to participate in either the Safety (Police and Fire) or Miscellaneous (all other) plan. It is part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions, as well as other requirements, is established by State statutes within the Public Employee’s Retirement Law. The City of Napa selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local resolutions. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office at 400 Q Street, Sacramento, CA 95811 or on the CalPERS website at www.calpers.ca.gov
.
Assembly Bill (AB) 340 pension reform created the Public Employees’ Pension Reform Act (PEPRA) that implemented new benefit formulas and final compensation period, as well as new contribution requirements for new employees hired on or after January 1, 2013 who meet the definition of new member under PEPRA.
The table below provides information on the benefit formula, final compensation period and the employer and member contribution rates effective June 30, 2024 for any safety and miscellaneous employees that meet the definition of a new member under PEPRA.
Benefit Formula Miscellaneous (2% at age 62) Safety (2.7% at age 57) Final compensation period 3 year average 3 year average Employer contribution rate as a
percentage of payroll 40.66% of reportable compensation 62.34% of reportable compensation Member contribution rate as a
percentage of payroll 7.25% of reportable compensation 12.25% of reportable compensation B. Benefits Provided
CalPERS provides service retirement and disability benefits, annual costs of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. A classic CalPERS member or Public Employees’ Pension Reform Act of 2013 (PEPRA) Safety member becomes eligible for service retirement upon attainment of age 50 with at least 5 years of credited service (total service across all CalPERS employers, and with certain other Retirement Systems with which CalPERS has reciprocity agreements). PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least 5 years of service. All members are eligible for non-duty disability benefits after 5 years of credited service. The death benefit is one of the following: the Basic Death Benefit, the Indexed Level of 1959 Survivor Benefits (for Miscellaneous and local Fire members only) or the Fourth Level of 1959 Survivor Benefits (for local Police members only). The standard cost of living adjustment (COLA) is 2 percent. Annual adjustments are calculated by first determining the lesser of 1) 2 percent compounded from the end of the year of retirement or 2) actual rate of inflation.
The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: EMPLOYEE RETIREMENT SYSTEM
98 ATTACHMENT 2
Miscellaneous
Hire Date
Classic Members
(Prior to
December 21, 2012)
Tier 2 (Between
December 21, 2012 and
January 1, 2013)
PEPRA
(On or after
January 1, 2013)
Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of eligible
compensation
2% to 2.7% 1.092% to 2.418% 1.0% to 2.5%
Required employee contribution rates 8.00% 7.00% 7.25%
Required employee cost share 4.50% 4.50% 7.00%/ 8.00%
Required City Council cost share 3.00% 3.00% 3.00%
Required employer contribution rates 40.66% 40.66% 40.66% Safety - Police
Hire Date
Classic Members
(Prior to
January 7, 2012)
Tier 2 (Between
January 7, 2012 and
January 1, 2013)
PEPRA
(On or after
January 1, 2013)
Benefit formula 3% @ 50 3% @ 55 2.7% @ 5.7
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 50 - 55 52 - 67
Monthly benefits, as a % of eligible
compensation
3% 2.4% to 3.0% 1.0% to 2.5%
Required employee contribution rates 9.00% 9.00% 12.25% Required employee cost share 5.50% 5.50% 4.50%
Required City Council cost share 5.50% 4.00% 3.00%
Required employer contribution rates 55.02% 55.02% 62.34% Safety - Fire
Hire date
Classic Members
(Prior to
August 11, 2012)
Tier 2 (Between
August 11, 2012 and
January 1, 2013)
PEPRA
(On or after
January 1, 2013)
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible
compensation
3% 2.4% to 3.0% 2.0% to 2.7%
Required employee contribution rates 9.00% 9.00% 12.25% Required employee cost share 3.00% 3.00% 0.00%
Required City Council cost share 5.50% 5.50% 5.50%
Required employer contribution rates 55.02% 55.02% 62.34%
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: EMPLOYEE RETIREMENT SYSTEM (CONTINUED)
99 ATTACHMENT 2
C. Employees Covered
At June 30, 2025 the following employees were covered by the benefit terms for each Plan:
Miscellaneous Plan Safety Plan Total
Active employees 313 127 440
Transferred and terminated employees 335 57 392
Retired employees and beneficiaries 513 241 754
Total 1,161 425 1,586
D. Contributions
Active Classic members in the plans are required to contribute 8% for miscellaneous employees or 9% for public safety employees of their annual covered salary. Active Tier 2 members are required to contribute 7% for miscellaneous employees or 9% for public safety employees of their annual covered salary. Active PEPRA plan members are required to contribute 50% of the total normal cost as actuarially calculated by CalPERS. The City of Napa is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rate for the year ended June 30, 2024 was 33.10% for miscellaneous employees and 52.29% for public safety employees. The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by CalPERS. For the year ended June 30, 2025, the City’s current year pension contributions were $24,059,875.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2023 valuation was rolled forward to determine the June 30, 2024 total pension liability, based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB Statement No. 68.
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return 6.80%
Mortality Rate Table Derived using CALPERS' Membership Data for all funds. The mortality table used was developed based on CALPERS' specific data. The table includes full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
Post Retirement Benefit Increase
Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter.
The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: EMPLOYEE RETIREMENT SYSTEM (CONTINUED)
100
ATTACHMENT 2
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:
New Strategic Real Return
Asset Class1 Allocation Years 1-102
Global Equity 30.0% 4.5%
Global Equity 12.0% 3.8%
Private Equity 13.0% 7.3%
Treasury 5.0% 0.3%
Mortgage-backed Securities 5.0% 0.5%
Investment Grade Corporates 10.0% 1.6%
High Yield 5.0% 2.3%
Emerging Market Debt 5.0% 2.5%
Private Debt 5.0% 3.6%
Real Estate 15.0% 3.2%
Leverage (5.0)% (0.6)%
1 In the CalPERS' ACFR, Fixed Income is included in Global Debt Securities; Leverage is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
2 An expected inflation of 2.30% used for this period.
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: EMPLOYEE RETIREMENT SYSTEM (CONTINUED)
101
ATTACHMENT 2
The amortization period differs depending on the source of the gain or loss:
Net difference between projected and actual
earnings on pension plan investments
5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period Changes in Net Pension Liability
The changes in the Net Pension Liability as of June 30, 2025 for each Plan follows:
Miscellaneous Plan
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 (Valuation Date) $ 317,030,924 $ 199,440,659 $ 117,590,265 Changes in the year:
Service cost 6,019,347 - 6,019,347
Interest on the total pension liabilities 21,783,944 - 21,783,944 Changes in benefit terms - - -
Changes in assumptions - - -
Differences between expected and actual experience 4,840,221 - 4,840,221 Benefit payments, including refunds of members contributions (18,342,949) (18,342,949) - Contributions-employer - 10,447,606 (10,447,606)
Contributions-employee - 4,316,750 (4,316,750)
Net investment income - 19,318,732 (19,318,732)
Net plan to plan resource movement - 5,489 (5,489)
Administrative expenses - (162,285) 162,285
Net Changes 14,300,563 15,583,343 (1,282,780)
Balance at June 30, 2024 (Measurement Date) $ 331,331,487 $ 215,024,002 $ 116,307,485 Safety Plan
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 (Valuation Date) $ 315,812,421 $ 202,769,420 $ 113,043,001 Changes in the year:
Service cost 6,691,619 - 6,691,619
Interest on the total pension liabilities 21,577,374 - 21,577,374 Changes in benefit terms - - -
Changes in assumptions - - -
Differences between expected and actual experience 2,437,470 - 2,437,470 Benefit payments, including refunds of members contributions (17,760,256) (17,760,256) - Contributions-employer - 11,930,838 (11,930,838)
Contributions-employee - 3,085,642 (3,085,642)
Net investment income - 19,559,826 (19,559,826)
Administrative expenses - (164,994) 164,994
Net Changes 12,946,207 16,651,056 (3,704,849)
Balance at June 30, 2024(Measurement Date) $ 328,758,628 $ 219,420,476 $ 109,338,152
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: EMPLOYEE RETIREMENT SYSTEM (CONTINUED)
102
ATTACHMENT 2
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City of Napa for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:
Plan's Aggregate Net Pension Liability/(Asset)
Discount Rate -1% Current Discount Discount Rate +1%
5.90% Rate 6.90% 7.90%
Miscellaneous $ 158,817,443 $ 116,307,485 $ 81,137,511
Safety 151,934,258 109,338,152 74,196,342
Total $ 310,751,701 $ 225,645,637 $ 155,333,853
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
E. Pension Expense and Deferred Outflows/Inflows of Resource Related to Pensions For the year ended June 30, 2025, the City’s recognized pension expense of $33,505,405. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Miscellaneous Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to measurement date $ 11,652,846 $ - Difference between projected and actual earnings on pension plan investments 2,846,182 -
Changes in assumptions 289,190 -
Differences between expected and actual experience 5,428,842 - Total $ 20,217,060 $ -
Safety Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to measurement date $ 12,407,029 $ - Difference between projected and actual earnings on pension plan investments 3,051,587 -
Changes in assumptions 2,545,784 -
Differences between expected and actual experience 4,974,673 22,596 Total $ 22,979,073 $ 22,596
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: EMPLOYEE RETIREMENT SYSTEM (CONTINUED)
103
ATTACHMENT 2
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to measurement date $ 24,059,875 $ - Difference between projected and actual earnings on pension plan investments 5,897,769 -
Changes in assumptions 2,834,974 -
Differences between expected and actual experience 10,403,515 22,596 Total $ 43,196,133 $ 22,596
The amount of $24,059,875 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Deferred Outflows/(Inflows) of Resources
Year Ended June 30, Miscellaneous Plan Safety Plan Total 2026 $ 3,119,543 $ 4,893,615 $ 8,013,158
2027 6,920,302 6,963,170 13,883,472
2028 (337,657) (289,343) (627,000)
2029 (1,137,974) (1,017,994) (2,155,968)
Total $ 8,564,214 $ 10,549,448 $ 19,113,662
F. Defined Contribution Plans
The City also provides defined contribution retirement benefits though IRS section 401(a) and 457 plans. The plans are administered by the Mission Square and Nationwide Retirement Solutions. Plan provisions and contribution requirements are established and may be amended by City Council through negotiation with employee associations. The City contributes from $50 to $100 per month to its non-safety and management employees, depending upon employee group. In addition, the City contributes $322 per month for executives and an additional $1,250 per month for City Manager. City Clerk, City Attorney and Assistant City Manager receive an additional $1,000 per month. During the year ended June 30, 2025, the City fully funded its required contributions of $414,988 to these plans.
G. Other Retirement Systems
The Omnibus Budget Reconciliation Act of 1990 (OBRA) mandates that public sector employees who are not members of their employer’s existing retirement system as of January 1, 1992, be covered by either Social Security or an alternative plan. The City contracts with the Public Agency Retirement Systems (PARS), to maintain a defined contribution plan that covers part-time, seasonal and temporary employees. Employer liabilities are limited to the amount of current contributions.
Under PARS, employees contribute 5.0% and the City contributes 2.5% of the employee’s salary each pay period.
For the fiscal year ended June 30, 2024, total contribution of $88,330 were based on a total amount of covered compensation of $1,177,707.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: EMPLOYEE RETIREMENT SYSTEM (CONTINUED)
104
ATTACHMENT 2
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
A. Plan Description and Eligibility
The City participates in the California Employer's Retiree Benefit Fund (CERBT), an agent multiple-employer defined benefit health care plan which provides post-retirement benefits to retired employees in accordance with the various Memorandums of Understanding and their date of hire. Spouses and dependents are eligible to enroll.
Benefits continue to surviving spouses for PEMHCA only.
Retirees are eligible for medical benefits if they retire at age 50+, with City service requirements that vary by hire date and bargaining group. A retiree is generally eligible for a fixed monthly payment or the number of payments is based on accrued sick-days at time of retirement.
B. Employees Covered by Benefit Terms
As of June 30, 2025, the benefit terms covered the following employees:
Active plan members 458
Inactive employees, spouses, or beneficiaries currently receiving benefit payments 179 Total 637
C. Contributions
The plan and its contribution requirements are established by memorandums of understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. Employees are not required to contribute to the plan. Contributions recognized by the plan from the employer for the year ended June 30, 2025 were $1,228,742.
D. Net OPEB Liability (Asset)
The City's net OPEB asset for the health care plan was measured as the total OPEB liability, less the OPEB plan’s fiduciary net position. The net OPEB asset of the plan was measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023. A summary of principal assumptions and methods used to determine the net OPEB asset is shown below.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
105
ATTACHMENT 2
Actuarial Assumptions - The total OPEB asset in the June 30, 2024 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry age normal, level percent of pay Amortization Method Closed period, level percent of pay Amortization Period 12 years
Actuarial Assumptions:
Mortality Derived using CalPERS Membership Data for all Funds Termination Rates Derived using CalPERS Membership Data for all Funds Disability Derived using CalPERS Membership Data for all Funds Retirement Derived using CalPERS Membership Data for all Funds Premiums Premiums used to develop aged claims
Grouping Employee Two-Party
Pre-Medicare Plans $11,492 $22,984
Medicare Plans 3,648 7,296
Annual Per Capital Claims Cost Developed using CalPERS experience to calculate age-related risk scores, but using the city's actual premiums for all other purpose. Assumed annual per capita claims costs follow:
Age Males Females
50 $14,652 $14,655
55 17,437 15,976
60-64 20,362 18,042
Average Per Capita Cost for Implicit
Subsidy Calculation
Developed based on premiums for the City's enrollment by plan, family demographics from CalPERS plans, and risk scores (both HMO and PPO) for the CalPERS population.
Aging or Morbidity Factors Based on actual CalPERS HMO and PPO population data.
Participant Contributions Based on service at retirement and employee group.
Salary Increases
Aggregate Payroll Growth: 2.80%
Individual Salary Increases: 2021 CalPERS Merit Salary Increases 2.30% Inflation Rate 2.30%
Marital Status Current Retirees: Actual spouse coverage is used.
Future Retirees: 70% assumed to be married.
Spouse Gender Current & Future Retires: Assumes spouse of opposite gender Spouse Age Difference Current retirees: actual spouse age is used.
Future retirees: assumes males are three years older than females.
Implicit Subsidy NPOA and PMU only.
Participation Current Retirees: Assume current elections continue until decrement.
Future Retirees: Election assumptions summarized
Benefit Type Service Retirement Disability Retirement
Police Chief 100.00 % 100.00 %
Elected/Executive 75.00 % 75.00 %
Other 70.00 % 70.00 %
Trend Rates Medical Long-Term Trends from Society of Actuaries "Long Term Healthcare Cost Trends Model v2023_1f" using baseline assumptions. Applied to both claims and premiums.
PEMHCA Information The NPOA and PMU are the only groups that participate in CalPERS plans. The PEMHCA minimum is assumed to trend at 3% per year. PEMHCA administration fees not material to valuation and excluded.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED) 106
ATTACHMENT 2
E. Changes in the Net OPEB Liability (Asset)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balance at June 30, 2023 $ 11,674,511 $ 10,212,439 $ 1,462,072 Changes recognized for the
measurement period:
Service cost 395,279 - 395,279
Interest on the total OPEB liability 722,860 - 722,860 Difference between expected and actual experience (29,231) - (29,231) Changes of assumptions (180,856) - (180,856)
Contribution from the employer - City's contribution - 1,098,842 (1,098,842) Contribution from the employer - implicit subsidy - 129,900 (129,900) Net investment income - 1,202,102 (1,202,102)
Administrative expenses - (5,495) 5,495
Implicit rate subsidy fulfilled (129,900) (129,900) - Benefit payments (803,919) (803,919) -
Other miscellaneous income/(expense) - (3,407) 3,407 Net Changes during July 1, 2023 to June 30, 2024 (25,767) 1,488,123 (1,513,890) Balance at June 30, 2024 $ 11,648,744 $ 11,700,562 $ (51,818) Sensitivity of the total and net OPEB Liability (Asset) to Changes in the Discount Rate The net OPEB liability (asset) of the City, as well as what the City's net OPEB liability (asset) would be if they were calculated using a discount rate that is one percentage point lower (5.40%) or one percentage point higher (7.40%) follows:
Plan's Net OPEB Liability (Asset)
Discount Rate -1% Current Discount Discount Rate +1%
5.40% 6.40% 7.40%
$ 1,083,407 $ (51,818) $ (1,027,575)
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Healthcare Cost Trend Rates The total net OPEB liability (asset) of the City, as well as what the City's net total OPEB liability (asset) would be if it were calculated using healthcare cost trend rates that are one percentage point lower (5.40%) or one percentage point higher (7.40%) than current healthcare cost trend rates follows:
Plan's Net OPEB Liability (Asset)
-1%
Healthcare Cost
Trend Rate 1%
$ (474,185) $ (51,818) $ 469,495
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED) 107
ATTACHMENT 2
F. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB For the report year ended June 30, 2025, the City recognized an OPEB expense of $316,108. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to the measurement date $ 1,274,748 $ - Differences between expected and actual experience 1,073,696 3,074,535 Changes of assumptions 1,065,049 333,556
Net difference between projected and actual earnings
on OPEB Plan investments - 214,124
Total $ 3,413,493 $ 3,622,215
The amount of $1,274,748 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2026.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Deferred
Outflows/(Inflows)
Year ended June 30, of Resources
2026 $ (340,053)
2027 39,464
2028 (288,990)
2029 (108,641)
2030 (34,925)
Thereafter (750,325)
Total $ (1,483,470)
G. Substantive Plan
Administrative, Managerial and Professional Employees
All Tiers
Eligibility On attainment of age 50, 10 years City of Napa Service time, and by either service retirement status or qualifying disability retirement status.
Duration of
coverage
Retiree's lifetime.
Spouse coverage Spouses and dependents are eligible to enroll, but the retiree pays 100% of the cost.
Medical plan
choices
The retiree may choose a City plan with either Kaiser Permanente or Western Health. After Medicare age, plans are only available through Kaiser Permanente.
Core benefit All retirees may covert their unused sick leave to CalPERS service time.
If the retiree meets eligibility, they receive up to $274 per month.
If the retiree was hired before July 1, 1984, the City will also pay life insurance premiums up to $2,500, until the retiree is age 70.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED) 108
ATTACHMENT 2
Napa City Employee's Association
Tier 1 - Hired before July 1, 1983
Eligibility On attainment of age 50, 10 years City of Napa Service time, and by either service retirement status or qualifying disability retirement status.
Duration of
coverage
Retiree's lifetime.
Spouse coverage Spouses and dependents are eligible to enroll, but the retiree pays 100% of the cost.
Medical plan
choices
The retiree may choose a City plan with either Kaiser Permanente or Western Health. After Medicare age, plans are only available through Kaiser Permanente.
Core benefit All retirees may covert their unused sick leave to CalPERS service time.
If the retiree meets eligibility, they receive up to $274 per month.
If the retiree was hired before July 1, 1984, the City will also pay life insurance premiums up to $2,500, until the retiree is age 70.
Tier 4 - Hired after July 1, 1983
Eligibility On attainment of age 50, 10 years City of Napa Service time, and by either service retirement status or qualifying disability retirement status.
Duration of
coverage
Retiree's lifetime.
Core benefit All retirees may covert their unused sick leave to CalPERS service time.
If the retiree meets eligibility, they receive up to $274 per month.
If the retiree was hired before July 1, 1984, the City will also pay life insurance premiums up to $2,500, until the retiree is age 70.
Executives - Department Heads
Tier 4
Eligibility On attainment of age 50, 10 years City of Napa Service time, and by either service retirement status or qualifying disability retirement status.
Duration of
coverage
Retiree's lifetime.
Spouse coverage Spouses and dependents are eligible to enroll, but the retiree pays 100% of the cost.
Medical plan
choices
The retiree may choose a City plan with either Kaiser Permanente or Western Health. After Medicare age, plans are only available through Kaiser Permanente.
Core benefit All retirees may covert their unused sick leave to CalPERS service time.
If the retiree meets eligibility, they receive up to $347 per month.
Police Chief Only
Eligibility Hired between July 1, 1984 and July 1, 1987, PMU member before July 1, 2007 and either service retirement status or qualifying disability retirement status.
Core benefit The City contributes the single party retiree monthly premium at the Kaiser health insurance rate.
Elected Officials
All Tiers
Eligibility On attainment of age 50, 8 years City of Napa Service time, and by either service retirement status or qualifying disability retirement status.
Duration of
coverage
Retiree's lifetime.
Spouse coverage Spouses and dependents are eligible to enroll, but the retiree pays 100% of the cost.
Medical plan
choices
The retiree may choose a City plan with either Kaiser Permanente or Western Health. After Medicare age, plans are only available through Kaiser Permanente.
Core benefit If the retiree meets eligibility, they receive up to $347 per month.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED) 109
ATTACHMENT 2
Napa City Firefighters Association
Tier 2 - Hired after August 1, 1982
Eligibility The retiree must opt out of HRA in order to receive this benefit and also attain either service retirement status or qualifying disbility status.
Duration of
coverage
Until the retiree runs out of unused sick leave converted to Retiree Single Party Health reimbursement (maximum of 180 months).
Spouse coverage Spouses and dependents are eligible to enroll, but the retiree pays 100% of the cost.
Medical plan
choices
The retiree may choose a City plan with either Kaiser Permanente or Western Health. After Medicare age, plans are only available through Kaiser Permanente.
Core benefit The retiree may make a one time, irrevocable choice at retirement. The retiree may choose to covert their unused sick leave up to 180 months in retiree singe party health reimbursement, where 8 hours is equivalent to 1 month of paid premiums. If employees is currently on a 56 hour schedule then sick leave hours are converted back to the 40 hours accrual before the using 8 hours is equivalent to 1 month. Otherwise, the retiree may choose convert their unused sick leave to CalPERS service time and opt for Tier 4 supplemental benefits.
Tier 4 - Supplemental Benefit
Eligibility On attainment of age 50 and by either service retirement status or qualifying disability retirement status.
Core benefit 50% of sick leave balance converted to HRA at 100% of the retiree's hourly pay rate. If employee is currently on a 56 hours schedule then sick leave hours are converted back to the 40 hours accrual before conversion to HRA. Remining 50% of sick leave balance converted to CalPERS service time.
Napa City Fire Officers
All Tiers
Eligibility On attainment of age 50, 10 years City of Napa Service time, and by either service retirement status or qualifying disability retirement status.
Duration of
coverage
Retiree's lifetime if supplemental payments
Spouse coverage Spouses and dependents are eligible to enroll, but the retiree pays 100% of the cost.
Medical plan
choices
The retiree may choose a City plan with either Kaiser Permanente or Western Health. After Medicare age, plans are only available through Kaiser Permanente.
Core benefit If the retiree meets eligibility an is not eligible for HRA, they receive up to $246 per month for retiree's lifetime. Option to convert unused sick leave to service credit.
If the retiree meets eligibility id not eligible for HRA, convert up to 180 days of unused sick leave into single-part health insurance at the rate of one day for one month's premium based on a 40 hour week. Otherwise, they have the option of converting unused sick leave to service credit. 50% of sick leave balance converted to HRA at 100% of the retiree's hourly pay rate. If employee is currently on a 56 hour schedule then sick leave hours are converted back to the 40 hour accrual before conversion to HRA. Remaining 50% of sick leave balance converted to CalPERS service time.
Napa Police Officers Association
Tier 1 - Eligible for retirement by July 1, 2012
Eligibility On attainment of the sum of age and years of service equal to at least 61, by either service retirement status or qualifying disability retirement status.
Duration of
coverage
Until the retiree runs out of unused sick leave converted to Retiree Single Party Health reimbursement (maximum of 180 months).
Spouse coverage Spouses and dependents are eligible to enroll, but the retiree pays 100% of the cost. Surviving spouses receives PEMHCA minimum, if applicable.
Medical plan
choices
Retiree may choose one of any medical plan provided through CalPERS.
The retiree may make a one time, irrevocable choice at retirement.
Core benefit The retiree may choose to convert their unused sick leave into retiree health premiums, where 8 hours is equivalent to 1 month of paid premiums at the single party rate set by Kaiser Permanente, up to a maxium of 180 months.
Otherwise, the retiree may convert their unused sick leave to CalPERS service time and opt into Tier 4 supplemental benefits.
Regardless of choice, the retiree receives at least the PEMHCA minimum from the City, as well as a contribution from the PORAC trust. The City of Napa is not a party to the agreement between the NPOA and the PORAC trust.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED) 110
ATTACHMENT 2
Tier 4 - Supplemental Benefit
Eligibility On attainment of 50 years of age and by either service retirement status or qualifying disability retirement status.
Core benefit All retirees may convert their unused sick leave to CalPERS service time. The retiree receives at least the PEMHCA minimum from the City.
Police Management Unit
Tier 1 - Hired between July 1, 1984 and July 1, 1987, and in Bargaining Group by July 1, 2007 Eligibility Attainment of either service retirement status or qualifying disability retirement.
Duration of
coverage
Retiree's lifetime
Spouse coverage Spouses and dependents are eligible to enroll, but the retiree pays 100% of the cost. Surviving spouse receives PEMHCA minimum, if applicable.
Medical plan
choices
Retiree may choose one of any medical plan provided through CalPERS.
Core benefit The City contributes the single party retiree monthly premium at the Kaiser health insurance rate.
Tier 2 - Hired after July 1, 1987, and in Bargaining Group by June 30, 2011 Eligibility Attainment of either service retirement status or by qualifying disability retirement.
Duration of
coverage
Until the retiree runs out of unused sick leave converted to Retiree Single Party Health reimbursement (maximum of 180 months). The retiree receives the PEMHCA minimum for life after the sick leave runs out.
Core benefit The retiree may make a one time, irrevocable choice at retirement. The retiree may choose to convert their unused sick leave into retiree single party health reimbursment, where 8 hours is equivalent to 1 month of paid single party rate medical premiums up to a maxium of 180 months.
Otherwise, the retiree may convert their unused sick leave to CalPERS service time and opt for a supplemental payment by the City toward the member's retiree medical coverage of $237 per month.
The retiree receives at least the PEMHCA minimum from the City.
Tier 3 - Member of Bargaining Group as of June 30, 2012, or promoted from NPOA on or after June 1, 2013 Eligibility Attainment of either service retirement status or by qualifying disability retirement.
Core benefit The retiree may make a one time, irrevocable choice at retirement. The retiree may choose to convert their unused sick leave into retiree single party health reimbursment, where 8 hours is equivalent to 1 month of paid single party rate medical premiums up to a maxium of 180 months.
Otherwise, the retiree may convert their unused sick leave to CalPERS service time and opt for Tier 4 supplemental benefits.
The retiree receives at least the PEMHCA minimum from the City.
Tier 4
Eligibility On attainment of 50 years of age and by either service retirement status or qualifying disability retirement status.
Duration of
coverage
Retiree's Lifetime
Core benefit All retirees may convert their unused sick leave to CalPERS service time.
If the retiree meets eligibility, they receive up to $237 per month.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED) 111
ATTACHMENT 2
NOTE 14: RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City carries commercial insurance. The City has established a limited risk management program for these types of risks. Premiums are paid into the internal service fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program.
Under this program the City is completely self-insured for unemployment insurance and is self-insured for workers’ compensation and general liability insurance claims up to $300,000 per occurrence and $150,000 per occurrence, respectively. Claims in excess of these amounts are insured through CSAC Excess Insurance Authority up to the statutory limit and $25,000,000, respectively. There were no settlements that exceeded coverage for each of the past three fiscal years. In addition the City has also put in place an insurance policy covering them from earthquakes in the amount of $40,000,000 per occurrence, with a deductible of 7.5%.
The City has retained an independent actuary to perform an analysis of the City’s potential liability for the City’s self- insured portions of the general liability and workers’ compensation programs. The amount recorded as a liability represents the specific reserves for individual known claims or lawsuits not covered under the general liability or the workers’ compensation insurance program and estimates for incurred but not reported claims. The actuarial analysis uses a rate of 5% for general liability and workers’ compensation to discount future investment earnings. The claims liability has been recorded as expected.
Below is a reconciliation of changes in the aggregate liabilities for claims for the fiscal years beginning and ending June 30, 2025, 2024, and 2023:
Year
Beginning of
Fiscal Year
Liability
Current Year Claims
and Changes in
Estimates
Claim
Payments
Balance at
Fiscal Year
End
Due Within
One Year
2025 $ 14,324,000 $ 6,703,205 $ (5,550,204) $ 15,477,001 $ 3,889,740 2024 10,758,000 7,211,963 (3,645,963) 14,324,000 3,659,231 2023 13,696,000 18,333,476 (21,271,476) 10,758,000 3,801,600 NOTE 15: NAPA VALLEJO WASTE MANAGEMENT AUTHORITY
(FORMERLY SOUTH NAPA VALLEY WASTE MANAGEMENT AUTHORITY) On March 16, 1993, the City of Vallejo and the County of Napa formed the South Napa Valley Waste Management Authority (the “Authority”), a separate legal entity, for the purpose of collectively managing the waste disposal needs of the communities they represent. The City of Napa resolved to join the Authority on March 18, 1993. In August, 1993, the City of Napa officially became a member of the Authority. The Authority has purchased the American Canyon Landfill site and accepted responsibility for its closure. State and federal laws and regulations require the Authority to place a final cover on this landfill site and to perform certain maintenance and monitoring functions at the site for 30 years after closure.
The City has no ongoing financial interest in the Authority. Closure and related costs will be paid through tipping fees assessed by the Authority at its Waste Transfer Facility. This Transfer Facility serves the waste disposal needs of the communities represented by the Authority. The tipping fees are paid by the citizens of these communities through rate assessments for waste pickup and disposal.
Financial information related to the Authority can be obtained from the Napa Vallejo Waste Management Authority located in Napa, California.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 14: RISK MANAGEMENT
112
ATTACHMENT 2
NOTE 16: COMMITMENTS AND CONTINGENCIES
A. Commitments
The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds.
Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to encumber that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as assigned fund balance in the General Fund since they do not constitute expenditures or liabilities.
Resources in other governmental funds are classified as restricted and encumbrances are included in those restricted fund balances. Re-appropriations in the subsequent year provide authority to complete these transactions as expenditures. Encumbrances outstanding in governmental funds as of June 30, 2025, were as listed below:
Governmental Funds
General Fund $ 1,957,795
Other Governmental Funds 11,958,449
Total $ 13,916,244
B. Claims and Litigation
The City is involved in several claims and lawsuits. In the opinion of the City’s management, it is unlikely that these claims and lawsuits will have a material adverse effect on the accompanying financial statements.
C. Federal and State Grants
The City has received federal and state grants for specific purposes that are subject to reviews by the grantor agencies. Such reviews could lead to requests for reimbursements to the grantor agency for expenditures disallowed under the terms of the grant. The amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time, although management expects such amounts, if any, to be immaterial.
D. Tax Sharing Agreements
The City has entered into a Sales Tax Revenue Sharing Agreement with SNC TRA, LLC. The agreement calls for the City to share Incremental Sales Tax Revenue in exchange for capital improvements to the common area.
Payments will be made to Town Center Shops, LLC in an amount not to exceed the lesser of $5,000,000 or the amount of capital expenditures made by the Developer on Common Area Improvements. Incremental Sales Tax Revenue is defined as the Sales Tax generated by the sale of taxable items within the project site that exceeds the Base Sales Tax (defined as the Sales Tax received by the City for taxable sales within the project site for the 12-month period ending June 30, 2012 and increased by 3% each year after FY12). $32,739 payments were made on this agreement in fiscal year 2025 due to the Sales Tax Revenue not exceeding the Base Sales Tax amount.
E. Construction Contracts
The City has a number of material construction contracts that are in process or are in production. The total of these contracts as of June 30, 2025, is $18,609,844.
F. North Bay Aqueduct
The City has a water supply contract with the Napa County Flood Control and Water Conservation District (NCFCWCD) that is linked to a master contract between the NCFCWCD and the State of California Department of Water Resources (DWR). Under these contracts, the State of California built the North Bay Aqueduct and peripheral infrastructure and allocated the costs to the benefiting municipalities. The contract calls for an annual payment that includes capital and operating components as well as a charge for water that varies widely each year based on the amount of consumption which is a function of climate, availability of other water supplies and pumping. The contract is non-cancelable and expires in the year 2035.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 16: COMMITMENTS AND CONTINGENCIES
113
ATTACHMENT 2
The components of the payments are as follows:
1. Capital Cost Component contains the conservation and transportation capital cost components for the use of the infrastructure and water rights and related debt obligation.
2. Conservation and transportation minimum Operation, Maintenance, Power & Replacement (OMP&R) components. Additionally, there is an obligation to pay an OMP&R component based on the water entitlement, which is not dependent on the quantity of water actually delivered.
3. Transportation variable OMP&R component is dependent upon the quantities of water actually delivered to the City.
4. Delta Water Charge is split into two components; (a) a capital piece for the initial conservation facilities, and (b) a minimum OMP&R component.
a. The capital cost component of the Delta Water Charge became applicable in 2013, and is paid in two semi-annual installments due January 1 and July 1 of each year. These payments are used to fund the initial conservation facilities and are partially offset by a rate management credit provided to agencies (including NCFCWCD) who have executed the Monterey Amendment which focuses on water shortage issues.
b. The minimum OMP&R component of the Delta Water Charge is paid monthly in 12 equal installments.
The total obligation of the City of Napa Water Fund for fiscal year 2025 was $8,818,002.
The total estimated obligation of the City of Napa Water Fund over the next five years and thereafter, are presented in the table below:
Fiscal Year
Estimated Total
Payment
2025 $ 5,859,476
2026 5,829,096
2027 5,861,533
2028 5,774,422
2029 5,793,388
2030-2034 27,616,189
2035 28,077,801
NOTE 17: PUBLIC PRIVATE SERVICE CONCESSION ARRANGEMENT During the year ended June 30, 2013, the City entered into an agreement with Napa Golf Course, LLC under which the company will operate and collect user fees from the Napa Municipal Golf Course for the next ten (10) years. The company will pay the City installment payments over the course of the arrangement; the present value of these installment payments is estimated to be $463,333. The company will also pay the City a percentage of the revenues it earns from the operation of the golf course (percentage rent based on tiers set forth in the agreement). The company is required to operate and maintain the golf course in accordance with the Agreement.
The City plans to use the proceeds from the installment payments to offset the deficit net position of the golf course fund, with any additional revenues to be used to fund golf course improvements. The City reports the golf course and related equipment as a capital asset with a carrying amount of $380,294 at June 30, 2025, and reports a receivable and deferred inflow of resources in the amount of $46,572 at June 30, 2025, pursuant to the service concession arrangement.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 16: COMMITMENTS AND CONTINGENCIES (CONTINUED)
114
ATTACHMENT 2
NOTE 18: PRIOR PERIOD ADJUSTMENTS AND RESTATEMENT OF FUND BALANCE/NET POSITION A. Change in Accounting Principle
For fiscal year ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences, which updated the recognition and measurement guidance for compensated absences, to align recognition and measurement under a single unified model to better meet the needs of financial statement users; refer to note 1.
The effect of the implementation of the change in accounting principle is shown in the table below.
B. Changes to or within the Reporting Entity
The Measure T fund was previously reported as a nonmajor governmental fund during the prior fiscal year. Due to a significant increase in assets of the fund during the year, it met the requirements of being presented as a major fund, in accordance with GASB Statement No. 34 during the fiscal year ended June 30, 2024. The effects of that change to or within the financial reporting entity are shown in the table below.
C. Error Correction
The Water Utility fund recorded adjustments to beginning net position to properly reflect the outstanding FEMA grant receivables at June 30, 2024.
June 30, 2024
As Previously
Reported
Changes to or
within the
Reporting
Entity
Error
Correction
Changes in
Accounting
Principle
June 30, 2024
As Restated
Government-wide
Governmental activities $ 463,140,421 $ - $ - $ (624,744) $ 462,515,677 Business-type activities $ 148,944,312 $ - $ (2,145,935) $ (130,012) $ 146,668,365 Total government-wide $ 612,084,733 $ - $ (2,145,935) $ (754,756) $ 609,184,042 Governmental funds
Major funds
General fund $ 48,480,366 $ - $ - $ - $ 48,480,366
Development Fees 26,321,131 - - - 26,321,131
HOME Program 799,244 - - - 799,244
Housing 5,703,463 - - - 5,703,463
Measure T - 2,469,759 - - 2,469,759
City Capital Projects 80,462,108 - - - 80,462,108
Nonmajor funds 24,660,306 (2,469,759) - - 22,190,547 Total governmental funds $ 186,426,618 $ - $ - $ - $ 186,426,618 Proprietary funds
Major funds
Water Utility $ 119,657,162 $ - $ (2,145,935) $ (130,012) $ 117,381,215 Solid Waste and
Recycling 29,287,150 - - - 29,287,150
Total proprietary funds $ 148,944,312 $ - $ (2,145,935) $ (130,012) $ 146,668,365
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 18: PRIOR PERIOD ADJUSTMENTS AND RESTATEMENT OF FUND BALANCE/NET POSITION 115
ATTACHMENT 2
NOTE 19: SUBSEQUENT EVENTS
On August 5, 2025, City Council approved and authorized the City Manager to execute a Joint Exercise of Powers Agreement between the Industrial Development Authority and the City of Napa, establishing the City of Napa Joint Public Finance Authority and the City of Napa, establishing the City of Napa Joint Public Finance Authority under the Joint Powers Law. On August 13, 2025, City of Napa and the City of Napa Industrial Development Authority formed a joint powers authority under the provisions of Article 1 (commencing with Section 6500) of Chapter 5, Division 7, Tile 1 of the Government Code of the State of California (the “joint Powers Law”) for the purpose of creating a public agency which can provide financial assistance to the Industrial Development Authority and the City in connection with the construction of public capital improvements and other purposes specified in the Joint Powers Law.
CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 19: SUBSEQUENT EVENTS
116
ATTACHMENT 2
This page left intentionally blank.
117
ATTACHMENT 2
Required Supplementary Information
118
ATTACHMENT 2
Note 1: Budgetary Information
The budget process is an ongoing cycle that serves as the foundation of the City of Napa’s financial planning and control. City Council meets at the beginning of the calendar year to set focus areas for the upcoming fiscal year.
Then City staff works to put together plans that match those focus areas, and then hold a Capital Improvement Program (CIP) Workshop and an Operating Budget Workshop in April for initial Council feedback. This is followed by public hearings in June to review and adopt the finalized budget. The new budget goes into effect on July 1 of each year.
The City typically follows a biennial budgeting process, which enhances efficiency by reducing the staff time required to prepare the budget in the second year and allows for long-term financial planning. Because the City’s Charter requires the Council to adopt a budget annually, the Council adopts the first year of the biennial budget and approves the budget plan for the second year at the same time. Council then adopts the second-year budget the following year. The City annually adopts the biennial appropriated budget for the General Fund, Development Fees Fund, HOME Program Fund, Housing Fund, Measure T Fund, and for all nonmajor special revenue funds (except for the Opioid Settlement Fund) and Capital Project Fund. The City also annually adopts the biennial appropriated budget for the proprietary funds. Budget comparison for these funds are not legally mandated and thus are not presented in these financial statements.
The budget is prepared by fund and by program within each department. Department managers may make transfers of appropriations within a department, except for personnel-related budgets, which require City Manager approval. Budget adjustments between funds or for CIP projects require City Council approval. The level of budgetary control, the level at which expenditures cannot legally exceed the appropriated amount, is established at the fund level. The budgets are adopted on a basis substantially consistent with generally accepted accounting principles (GAAP). Expenditures above the appropriated amount require approval by the City Council.
CITY OF NAPA, CALIFORNIA
Required Supplementary Information
Notes to Required Supplementary Information
For the Year Ended June 30, 2025
Note 1: Budgetary Information
119
ATTACHMENT 2
Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund and Major Special Revenue Funds 120
ATTACHMENT 2
General Fund
REVENUES
Taxes $ 105,742,850 $ 110,721,850 $ 112,722,891 $ 2,001,041 Licenses and permits 8,022,420 10,272,420 9,387,575 (884,845) Intergovernmental 1,140,860 15,565,022 11,793,309 (3,771,713) Charges for services 7,990,870 9,610,332 10,116,625 506,293 Investment income (loss) 1,300,000 2,800,000 5,316,245 2,516,245 Miscellaneous 6,500 339,958 311,749 (28,209)
Total revenues 124,203,500 149,309,582 149,648,394 338,812
EXPENDITURES
Current:
General government
City council 360,400 346,232 358,522 (12,290)
City clerk 1,490,410 1,500,492 1,394,893 105,599
City manager 6,798,180 7,126,192 5,453,329 1,672,863 Finance 5,715,300 5,719,381 4,636,949 1,082,432
City attorney 1,848,090 2,054,372 1,679,215 375,157 Human resources 2,581,280 2,794,273 2,208,431 585,842 General services 7,117,120 14,747,694 12,365,114 2,382,580 Public safety
Police 39,072,500 41,794,786 39,173,307 2,621,479
Fire 26,739,210 29,707,126 28,007,216 1,699,910
Community development 6,231,360 8,662,309 6,417,328 2,244,981 Parks and recreation 10,488,000 11,657,307 11,162,142 495,165 Public works 16,958,470 17,596,152 16,307,200 1,288,952 Capital outlay 50,500 699,389 3,400,904 (2,701,515) Debt service:
Principal 122,560 215,644 1,898,965 (1,683,321)
Interest and fiscal charges 6,000 3,541 140,222 (136,681) Total expenditures 125,579,380 144,624,890 134,603,737 10,021,153 Excess (deficiency) of revenues over (under)
expenditures (1,375,880) 4,684,692 15,044,657 10,359,965
OTHER FINANCING SOURCES (USES)
Transfers in 7,094,560 5,594,560 5,161,976 (432,584) Transfers out (5,886,523) (20,439,709) (12,162,335) 8,277,374 Lease issuance - - 802,222 802,222
SBITA Issuance - - 1,924,028 1,924,028
Total other financing sources (uses) 1,208,037 (14,845,149) (4,274,109) 10,571,040 Net change in fund balances $ (167,843) $ (10,160,457) 10,770,548 $ 20,931,005 Fund balances - beginning 48,480,366
Fund balances - ending $ 59,250,914
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
CITY OF NAPA, CALIFORNIA
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund
For the Year Ended June 30, 2025
121
ATTACHMENT 2
Development Impact Fees Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services $ 2,553,620 $ 2,553,620 $ 4,440,569 $ 1,886,949 Investment income (loss) 522,260 522,260 2,250,213 1,727,953 Total revenues 3,075,880 3,075,880 6,690,782 3,614,902
EXPENDITURES
Current:
Public Safety
Fire 500 500 48 452
Community development 255,170 7,548,325 180,568 7,367,757 Parks and recreation 17,120 17,120 7,277 9,843
Public works 12,120 12,120 4,442 7,678
Debt service:
Interest and fiscal charges 57,000 57,000 45,631 11,369 Total expenditures 341,910 7,635,065 237,966 7,397,099 Excess (deficiency) of revenues
over (under) expenditures 2,733,970 (4,559,185) 6,452,816 11,012,001
OTHER FINANCING SOURCES (USES)
Transfers in - - 6,860,676 6,860,676
Transfers out (562,280) (617,846) (62,280) 555,566
Total other financing sources (uses) (562,280) (617,846) 6,798,396 7,416,242 Net change in fund balances $ 2,171,690 $ (5,177,031) 13,251,212 $ 18,428,243 Fund balances - beginning 26,321,131
Fund balances - ending $ 39,572,343
CITY OF NAPA, CALIFORNIA
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Development Fees Special Revenue Fund
For the Year Ended June 30, 2025
122
ATTACHMENT 2
HOME Program Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services $ 800,000 $ 800,000 $ 5,831 $ (794,169) Investment income (loss) 3,500 3,500 38,529 35,029
Total revenues 803,500 803,500 44,360 (759,140)
EXPENDITURES
Current:
Community development 849,340 1,763,060 422,721 1,340,339 Total expenditures 849,340 1,763,060 422,721 1,340,339 Net change in fund balances $ (45,840) $ (959,560) (378,361) $ 581,199 Fund balances - beginning 799,244
Fund balances - ending $ 420,883
CITY OF NAPA, CALIFORNIA
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual HOME Program Special Revenue Fund
For the Year Ended June 30, 2025
123
ATTACHMENT 2
Housing Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 21,176,940 $ 22,073,583 $ 22,380,202 $ 306,619 Charges for services 1,202,150 1,502,150 2,022,984 520,834 Investment income (loss) 70,410 40,410 282,444 242,034 Total revenues 22,449,500 23,616,143 24,685,630 1,069,487
EXPENDITURES
Current:
General government 1,800 1,800 - 1,800
Community development 22,774,090 24,160,733 23,488,827 671,906 Debt service:
Principal 110,000 110,000 114,185 (4,185)
Interest and fiscal charges 39,000 39,000 24,568 14,432 Total expenditures 22,924,890 24,311,533 23,627,580 683,953 Excess (deficiency) of revenues
over (under) expenditures (475,390) (695,390) 1,058,050 1,753,440
OTHER FINANCING SOURCES (USES)
Transfers in - 4,719 - (4,719)
Transfers out (618,290) (623,009) (618,290) 4,719
Total other financing sources (uses) (618,290) (618,290) (618,290) - Net change in fund balances $ (1,093,680) $ (1,313,680) 439,760 $ 1,753,440 Fund balances - beginning 5,703,463
Fund balances - ending $ 6,143,223
CITY OF NAPA, CALIFORNIA
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Housing Special Revenue Fund
For the Year Ended June 30, 2025
124
ATTACHMENT 2
Measure T Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 10,472,500 $ 10,472,500 $ 10,079,315 $ (393,185) Investment income (loss) 5,000 5,000 649,542 644,542 Total revenues 10,477,500 10,477,500 10,728,857 251,357
EXPENDITURES
Current:
Public works 4,500 4,500 862 3,638
Total expenditures 4,500 4,500 862 3,638
Excess (deficiency) of revenues
over (under) expenditures 10,473,000 10,473,000 10,727,995 247,719
OTHER FINANCING SOURCES (USES)
Transfers in - - 17,944,855 17,944,855
Transfers out (10,350,000) (11,216,545) (1,000,000) 10,216,545 Total other financing sources (uses) (10,350,000) (11,216,545) 16,944,855 28,161,400 Net change in fund balances $ 123,000 $ (743,545) 27,672,850 $ 28,416,395 Fund balances - beginning 2,469,759
Fund balances - ending $ 30,142,609
CITY OF NAPA, CALIFORNIA
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure T Special Revenue Fund
For the Year Ended June 30, 2025
125
ATTACHMENT 2
Schedules of Changes in the Net Pension Liability and Related Ratios 126
ATTACHMENT 2
Miscellaneous Plan
2025 2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020
TOTAL PENSION LIABILITY
Service cost $ 6,019,347 $ 5,470,586 $ 5,270,491 $ 4,911,446 $ 5,156,236 Interest on total pension liability 21,783,944 20,827,852 19,825,780 19,225,627 18,650,486 Changes of benefit terms - 330,010 - - -
Changes of assumptions - - 8,964,908 - -
Difference between expected and actual
experience 4,840,221 5,318,189 554,714 (1,173,173) 2,417,623 Benefit payments, including refunds of
employee contributions (18,342,949) (16,770,298) (15,873,165) (14,918,789) (14,015,652) Net change in total pension liability 14,300,563 15,176,339 18,742,728 8,045,111 12,208,693 Total pension liability-beginning 317,030,924 301,854,585 283,111,857 275,066,746 262,858,053 Total pension liability-ending (a) 331,331,487 317,030,924 301,854,585 283,111,857 275,066,746
PLAN FIDUCIARY NET POSITION
Contributions-employer 10,447,606 9,468,142 9,384,902 8,238,930 7,711,417 Contributions-employee 4,316,750 3,313,794 3,967,159 3,359,408 3,511,723 Net investment income 19,318,732 11,922,631 (15,947,113) 39,512,419 8,464,735 Benefit payments, including refunds of
employee contributions (18,342,949) (16,770,298) (15,873,165) (14,918,789) (14,015,651) Net plan to plan resource movement 5,489 (2,071) - - - Administrative expense (162,285) (140,930) (130,972) (174,046) (237,961) Net change in fiduciary net position 15,583,343 7,791,268 (18,599,189) 36,017,922 5,434,263 Plan fiduciary net position - beginning 199,440,659 191,649,391 210,248,580 174,230,658 168,796,395 Plan fiduciary net position - ending (b) 215,024,002 199,440,659 191,649,391 210,248,580 174,230,658 Net pension liability/(asset) (a) - (b) $ 116,307,485 $ 117,590,265 $ 110,205,194 $ 72,863,277 $ 100,836,088 Plan fiduciary net position as a
percentage of the total pension liability 64.9% 62.9% 63.5% 74.3% 63.3% Covered payroll $ 29,961,114 $ 30,274,411 $ 28,351,218 $ 29,044,625 $ 29,531,709 Plan net pension liability/(asset) as a
percentage of covered payroll 394.9% 388.4% 388.7% 250.9% 341.5% Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the measurement date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes of Assumptions: None in 2020-2022. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2018, the discount rate was reduced from 7.65% to 7.15%. In 2017, there were no changes. In 2016, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2015, amounts reported were based on the 7.50% discount rate.
CITY OF NAPA, CALIFORNIA
Required Supplementary Information
Schedule of Changes in the Net Pension Liability/(Asset) and Related Ratios Miscellaneous Plan
As of June 30, for the Last Ten Fiscal Years
127
ATTACHMENT 2
2020 2019 2018 2017 2016
Measurement Date 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
TOTAL PENSION LIABILITY
Service cost $ 4,975,607 $ 4,920,518 $ 4,826,160 $ 4,213,795 $ 4,112,737 Interest on total pension liability 17,819,000 16,908,565 16,196,594 15,821,321 15,200,893 Changes of benefit terms - - - - -
Changes of assumptions - (1,572,075) 12,983,137 - (3,558,449) Difference between expected and actual
experience 3,663,735 2,317,801 (2,352,965) (519,311) (1,074,702) Benefit payments, including refunds of
employee contributions (13,331,060) (12,242,939) (11,473,139) (11,047,519) (10,421,831) Net change in total pension liability 13,127,282 10,331,870 20,179,787 8,468,286 4,258,648 Total pension liability-beginning 249,730,771 239,398,901 219,219,114 210,750,828 206,492,180 Total pension liability-ending (a) 262,858,053 249,730,771 239,398,901 219,219,114 210,750,828
PLAN FIDUCIARY NET POSITION
Contributions-employer 6,757,515 5,945,310 6,213,552 6,130,369 5,512,619 Contributions-employee 3,302,773 3,213,934 2,799,363 1,862,326 1,795,051 Net investment income 10,605,765 12,968,924 15,559,671 756,491 3,179,657 Benefit payments, including refunds of
employee contributions (13,331,060) (12,242,939) (11,473,139) (11,047,519) (10,421,831) Net plan to plan resource movement - (376) - 162 - Administrative expense (114,928) (688,371) (205,942) (86,463) (159,717) Net change in fiduciary net position 7,220,065 9,196,482 12,893,505 (2,384,634) (94,221) Plan fiduciary net position - beginning 161,576,330 152,379,848 139,486,343 141,870,977 141,965,198 Plan fiduciary net position - ending (b) 168,796,395 161,576,330 152,379,848 139,486,343 141,870,977 Net pension liability/(asset) (a) - (b) $ 94,061,658 $ 88,154,441 $ 87,019,053 $ 79,732,771 $ 68,879,851 Plan fiduciary net position as a
percentage of the total pension liability 64.2% 64.7% 63.7% 63.6% 67.3% Covered payroll $ 27,545,846 $ 26,369,336 $ 25,097,036 $ 23,856,617 $ 22,861,241 Plan net pension liability/(asset) as a
percentage of covered payroll 341.5% 334.3% 346.7% 334.2% 301.3%
CITY OF NAPA
Required Supplementary Information
Schedule of Changes in the Net Pension Liability/(Asset) and Related Ratios (Continued) Miscellaneous Plan
As of June 30, for the Last Ten Fiscal Years
128
ATTACHMENT 2
Safety Plan
2025 2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020
TOTAL PENSION LIABILITY
Service cost $ 6,691,619 $ 5,866,401 $ 5,777,577 $ 5,347,720 $ 5,333,938 Interest on total pension liability 21,577,374 20,744,894 19,812,748 18,892,723 18,263,895 Changes of benefit terms - 118,243 - - -
Changes of assumptions - - 10,183,136 - -
Difference between expected and actual
experience 2,437,470 4,332,860 3,804,489 (474,512) 651,239 Benefit payments, including refunds of
employee contributions (17,760,256) (17,032,614) (16,120,374) (14,950,834) (13,719,993) Net change in total pension liability 12,946,207 14,029,784 23,457,576 8,815,097 10,529,079 Total pension liability-beginning 315,812,421 301,782,637 278,325,061 269,509,964 258,980,885 Total pension liability-ending (a) 328,758,628 315,812,421 301,782,637 278,325,061 269,509,964
PLAN FIDUCIARY NET POSITION
Contributions-employer 11,930,838 10,259,867 10,064,144 8,949,140 8,220,126 Contributions-employee 3,085,642 2,525,085 3,376,840 2,840,085 2,818,016 Net investment income 19,559,826 11,991,172 (16,170,119) 40,267,200 8,626,342 Benefit payments, including refunds of
employee contributions (17,760,256) (17,032,614) (16,120,374) (14,950,834) (13,719,992) Net plan to plan resource movement - - - - -
Administrative expense (164,994) (143,518) (133,404) (177,036) (241,803) Net change in fiduciary net position 16,651,056 7,599,992 (18,982,913) 36,928,555 5,702,689 Plan fiduciary net position - beginning 202,769,420 195,169,428 214,152,341 177,223,786 171,521,097 Plan fiduciary net position - ending (b) 219,420,476 202,769,420 195,169,428 214,152,341 177,223,786 Net pension liability/(asset) (a) - (b) $ 109,338,152 $ 113,043,001 $ 106,613,209 $ 64,172,720 $ 92,286,178 Plan fiduciary net position as a
percentage of the total pension liability 66.7% 64.2% 64.7% 76.9% 65.8% Covered payroll $ 20,338,612 $ 19,666,111 $ 19,245,761 $ 19,264,122 $ 18,854,501 Plan net pension liability/(asset) as a
percentage of covered payroll 571.5% 574.8% 554.0% 333.1% 489.5% Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
Benefit Changes : The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the measurement date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes of Assumptions: None in 2020-2022. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2018, the discount rate was reduced from 7.65% to 7.15%. In 2017, there were no changes. In 2016, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2015, amounts reported were based on the 7.50% discount rate.
CITY OF NAPA, CALIFORNIA
Required Supplementary Information
Schedule of Changes in the Net Pension Liability/(Asset) and Related Ratios Safety Plan
As of June 30, for the Last Ten Fiscal Years
129
ATTACHMENT 2
2020 2019 2018 2017 2016
Measurement Date 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
TOTAL PENSION LIABILITY
Service cost $ 5,167,684 $ 4,965,402 $ 4,799,141 $ 4,178,301 $ 3,960,625 Interest on total pension liability 17,540,129 16,689,850 15,961,113 15,474,590 14,805,107 Changes of benefit terms - - - - -
Changes of assumptions - (950,228) 12,839,680 - (3,500,073) Difference between expected and actual
experience 2,815,814 2,402,452 (427,692) 585,472 (1,927,286) Benefit payments, including refunds of
employee contributions (12,919,138) (12,441,282) (11,765,683) (11,084,633) (10,332,611) Net change in total pension liability 12,604,489 10,666,194 21,406,559 9,153,730 3,005,762 Total pension liability-beginning 246,376,396 235,710,202 214,303,643 205,149,913 202,144,151 Total pension liability-ending (a) 258,980,885 246,376,396 235,710,202 214,303,643 205,149,913
PLAN FIDUCIARY NET POSITION
Contributions-employer 7,160,145 6,391,405 6,839,074 6,305,994 5,843,451 Contributions-employee 2,714,537 2,470,596 2,118,901 1,625,840 1,676,253 Net investment income 10,735,955 13,091,025 15,775,920 737,312 3,233,619 Benefit payments, including refunds of
employee contributions (12,919,138) (12,441,282) (11,765,683) (11,084,633) (10,332,611) Net plan to plan resource movement - (382) - - -
Administrative expense (116,614) (700,820) (210,211) (88,298) (163,038) Net change in fiduciary net position 7,574,885 8,810,542 12,758,001 (2,503,785) 257,674 Plan fiduciary net position - beginning 163,946,212 155,135,670 142,377,669 144,881,454 144,623,780 Plan fiduciary net position - ending (b) 171,521,097 163,946,212 155,135,670 142,377,669 144,881,454 Net pension liability/(asset) (a) - (b) $ 87,459,788 $ 82,430,184 $ 80,574,532 $ 71,925,974 $ 60,268,459 Plan fiduciary net position as a
percentage of the total pension liability 66.2% 66.5% 65.8% 66.4% 70.6% Covered payroll $ 18,097,296 $ 17,135,667 $ 16,493,027 $ 15,896,143 $ 14,861,631 Plan net pension liability/(asset) as a
percentage of covered payroll 483.3% 481.0% 488.5% 452.5% 405.5%
CITY OF NAPA
Schedule of Changes in the Net Pension Liability/(Asset) and Related Ratios (Continued) Safety Plan
As of June 30, for the Last Ten Fiscal Years
130
ATTACHMENT 2
Schedule of Changes in the Net OPEB Liability
2025 2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020
TOTAL OPEB LIABILITY
Service cost $ 395,279 $ 374,843 $ 280,571 $ 270,359 $ 261,827 Interest on total pension liability 722,860 898,608 964,150 802,954 797,189 Changes of benefit terms (180,856) (107,627) 1,610,933 (108,857) 10,519 Difference between expected and actual
experience (29,231) (2,996,807) (178,410) 1,966,781 21,776 Benefit payments, including refunds of
employee contributions (933,819) (1,040,885) (1,039,638) (1,031,127) (1,014,004) Net change in total OPEB liability (25,767) (2,871,868) 1,637,606 1,900,110 77,307 Total OPEB liability-beginning 11,674,511 14,546,379 12,908,773 11,008,663 10,931,356 Total OPEB liability-ending (a) 11,648,744 11,674,511 14,546,379 12,908,773 11,008,663
PLAN FIDUCIARY NET POSITION
Contributions-employer 1,098,842 1,034,510 994,117 1,297,178 1,324,459 Contributions-employee 129,900 209,218 186,838 180,676 171,156 Net investment income 1,202,102 696,702 (1,547,206) 2,379,405 284,673 Benefit payments, including refunds of
employee contributions (933,819) (1,040,885) (1,039,638) (1,031,127) (1,014,004) Administrative expense (8,902) (2,882) (2,865) (3,265) (3,835) Net change in fiduciary net position 1,488,123 896,663 (1,408,754) 2,822,867 762,449 Plan fiduciary net position - beginning 10,212,439 9,315,776 10,724,530 7,901,663 7,139,214 Plan fiduciary net position - ending (b) 11,700,562 10,212,439 9,315,776 10,724,530 7,901,663 Net OPEB liability/(asset) (a) - (b) $ (51,818) $ 1,462,072 $ 5,230,603 $ 2,184,243 $ 3,107,000 Plan fiduciary net position as a
percentage of the total OPEB liability 100.4% 87.5% 64.0% 83.1% 71.8% Covered payroll $ 48,286,632 $ 44,169,385 $ 41,910,541 $ 39,693,902 $ 37,565,896 Plan net OPEB liability/(asset) as a
percentage of covered payroll -0.1% 3.3% 12.5% 5.5% 8.3% Notes to Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios:
Benefit Changes: None
Changes in Assumptions: None
1 Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown.
CITY OF NAPA, CALIFORNIA
Required Supplementary Information
Schedule of Changes in the Net OPEB Liability
As of June 30, For the Last Ten Fiscal Years1
131
ATTACHMENT 2
2020 2019 2018
Measurement Date 6/30/2019 6/30/2018 6/30/2017
TOTAL OPEB LIABILITY
Service cost $ 371,113 $ 362,272 $ 352,148
Interest on total pension liability 908,149 884,055 860,289 Changes of benefit terms (93,590) 22,335 -
Difference between expected and actual
experience (1,892,659) - -
Benefit payments, including refunds of
employee contributions (930,237) (918,163) (902,868) Net change in total OPEB liability (1,637,224) 350,499 309,569 Total OPEB liability-beginning 12,568,580 12,218,081 11,908,512 Total OPEB liability-ending (a) 10,931,356 12,568,580 12,218,081
PLAN FIDUCIARY NET POSITION
Contributions-employer 1,261,435 1,299,596 1,043,887 Contributions-employee 116,007 - -
Net investment income 467,868 430,264 554,574
Benefit payments, including refunds of
employee contributions (930,237) (918,163) (902,868) Administrative expense (1,484) (3,194) (2,680)
Net change in fiduciary net position 913,589 808,503 692,913 Plan fiduciary net position - beginning 6,225,625 5,417,122 4,724,209 Plan fiduciary net position - ending (b) 7,139,214 6,225,625 5,417,122 Net OPEB liability/(asset) (a) - (b) $ 3,792,142 $ 6,342,955 $ 6,800,959 Plan fiduciary net position as a
percentage of the total OPEB liability 65.3% 49.5% 44.3% Covered payroll $ 42,081,119 $ 40,954,860 $ 39,726,214
Plan net OPEB liability/(asset) as a
percentage of covered payroll 9.0% 15.5% 17.1%
CITY OF NAPA, CALIFORNIA
Required Supplementary Information
Schedule of Changes in the Net OPEB Liability (Continued) As of June 30, For the Last Ten Fiscal Years1
132
ATTACHMENT 2
Schedules of Plan Contributions
Miscellaneous Agent, Multiple-Employer Pension Plan
2025 $ 11,652,846 $ 11,652,846 $ - $ 29,449,816 39.6%
2024 10,446,809 10,446,809 - 29,961,114 34.9%
2023 9,747,685 9,747,685 - 30,274,411 32.2%
2022 9,105,370 9,105,370 - 28,351,218 32.1%
2021 5,676,210 5,676,210 - 29,044,625 19.5%
2020 5,159,972 5,159,972 - 29,531,709 17.5%
2019 4,472,807 4,472,807 - 27,545,846 16.2%
2018 3,797,781 3,797,781 - 26,369,336 14.4%
2017 3,705,781 3,705,781 - 25,097,036 14.8%
2016 3,297,550 3,297,550 - 23,856,617 13.8%
Safety Agent, Multiple-Employer Pension Plan
2025 $ 12,407,029 $ 12,407,029 $ - $ 19,130,458 64.9%
2024 11,930,838 11,930,838 - 20,338,612 58.7%
2023 10,653,029 10,653,029 - 19,666,111 54.2%
2022 9,670,982 9,670,982 - 19,245,761 50.2%
2021 8,949,140 8,949,140 - 19,264,122 46.5%
2020 8,220,126 8,220,126 - 18,854,501 43.6%
2019 7,160,145 7,160,145 - 18,097,296 39.6%
2018 8,497,880 8,497,880 - 17,135,667 49.6%
2017 6,839,074 6,839,074 - 16,493,027 41.5%
2016 6,305,994 6,305,994 - 15,896,143 39.7%
Single Employer OPEB Plan
2025 $ 875,131 $ 1,274,748 $ (399,617) $ 57,894,837 2.2% 2024 448,946 1,034,510 (585,564) 48,286,632 2.1%
2023 512,400 1,180,955 (668,555) 41,910,541 2.8%
2022 631,388 1,477,854 (846,466) 41,910,541 3.5%
2021 615,280 1,297,178 (681,898) 39,693,902 3.3%
2020 930,210 1,324,459 (394,249) 37,565,896 3.5%
2019 968,028 1,377,442 (409,414) 42,081,119 3.3%
2018 935,278 1,204,094 (268,816) 40,954,860 2.9%
Covered/ Contribution as a
Fiscal Year Actuarially Actual Contribution Covered- % of Covered/ Ending Determined Employer Deficiency Employee Covered Employee June 30, Contribution Contributions (Excess) Payroll Payroll Notes to Schedule of Plan Contributions:
1 Historical information is required only for measurement for which GASB 68 and GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation for GASB 75, therefore only eight years are shown.
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023-24 were derived from the June 30, 2021 funding valuation report, available on the CalPERS' website.
Actuarial Cost Method: Entry Age Normal
Amortization Method/Period: For details, see June 30, 2021 Funding Valuation Report Asset Valuation Method: Fair value of assets, for details, see June 30, 2021 Funding Valuation Report Inflation: 2.30%
Salary Increases: Varies by entry age and service
Payroll Growth: 2.80%
Investment Rate of Return: 6.90%
Retirement Age: For details, see June 30, 2021 Funding Valuation Report Mortality: For details, see June 30, 2021 Funding Valuation Report
CITY OF NAPA, CALIFORNIA
Required Supplementary Information
Schedules of Plan Contributions
As of June 30, For the Last Ten Fiscal Years1
133
ATTACHMENT 2
Supplementary Information
134
ATTACHMENT 2
Nonmajor Governmental Funds
All governmental funds not defined as major funds for the Fund Financial Statements are consolidated in one column entitled “Other Governmental Funds”. These non-major funds are identified and included in this supplemental section and includes all the City’s non-major Special Revenue Funds.
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The City does not adopt a budget for Public Infrastructure Program Fund, Opioid Settlement Fund, and Departmental Funds related to state and federal grants.
Assessment District Fund
Tourism Improvement District Fund
Community Development Block Grant Fund
Traffic Fund
Parking Fund
CalHome Grant Fund
Public Safety Program Fund
Parks and Recreation Trust Programs
Public Infrastructure Program
Business District Fund
Property and Business Improvement Fund
Damage Reimbursement Fund
Permanent Local Housing Allocation Fund
Road Maintenance and Rehabilitation Act Fund
Gas Tax Fund
Measure F Fund
Encampment Resolution Grant
Golf Course Fund
Enhanced Infrastructure Financing District
Opioid Settlement
Departmental Special Revenue
135
ATTACHMENT 2
Combining Balance Sheet
ASSETS
Cash and investments $ 9,771,024 $ 1,181,651 $ 387,398 $ 867,090 Receivables (net of allowance for uncollectibles):
Accounts 8,668 232,183 100 43,549
Interest 12,552 1,654 519 1,178
Federal, state and other governments - - 346,811 -
Loans - - 4,608,949 -
Prepaid items - - 1,073 7,562
Total assets $ 9,792,244 $ 1,415,488 $ 5,344,850 $ 919,379
LIABILITIES
Accounts payable and accrued liabilities $ - $ 40,693 $ 102,508 $ 29,490 Deposits payable - - - -
Due to other funds 3,122 - 642,621 -
Unearned revenue - - 54,063 -
Advances from other funds - - - -
Total liabilities 3,122 40,693 799,192 29,490
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - 4,747,227 -
Lease-related - - - -
Total deferred inflows of resources - - 4,747,227 -
FUND BALANCES (DEFICITS)
Nonspendable - - 1,073 7,562
Restricted 9,789,122 1,374,795 - 882,327
Unassigned (deficit) - - (202,642) -
Total fund balances (deficits) 9,789,122 1,374,795 (201,569) 889,889 Total liabilities, deferred inflows of resources and
fund balances (deficits) $ 9,792,244 $ 1,415,488 $ 5,344,850 $ 919,379 Special Revenue Funds
Assessment
District
Tourism
Improvement
District
Community
Development
Block Grant Traffic
CITY OF NAPA, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
136
ATTACHMENT 2
ASSETS
Cash and investments $ 8,305,116 $ 160,772 $ 42,678 $ 205,873 Receivables (net of allowance for uncollectibles):
Accounts 51,750 - - -
Interest 11,105 239 61 293
Federal, state and other governments - - - -
Loans - 1,663,914 - -
Prepaid items - 261 - -
Total Assets $ 8,367,971 $ 1,825,186 $ 42,739 $ 206,166
LIABILITIES
Accounts payable and accrued liabilities $ 26,882 $ 1,221 $ - $ - Deposits payable - - - -
Due to other funds - - 110 -
Unearned revenue - - - -
Advances from other funds - - - -
Total liabilities 26,882 1,221 110 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 1,663,915 - -
Lease-related 2,353,750 - - -
Total deferred inflows of resources 2,353,750 1,663,915 - -
FUND BALANCES (DEFICITS)
Nonspendable - 261 - -
Restricted 5,987,339 159,789 42,629 206,166
Unassigned (deficit) - - - -
Total fund balances (deficits) 5,987,339 160,050 42,629 206,166 Total liabilities, deferred inflows of resources
and fund balances (deficits) $ 8,367,971 $ 1,825,186 $ 42,739 $ 206,166 Special Revenue Funds
Parking CalHome Grant
Public Safety
Programs
Parks and
Recreation Trust
Programs
CITY OF NAPA, CALIFORNIA
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
137
ATTACHMENT 2
ASSETS
Cash and investments $ 250,283 $ 7,347 $ 835 $ 137,205
Receivables (net of allowance for uncollectibles):
Accounts - 5,699 1,440 47,513
Interest 356 39 100 195
Federal, state and other governments - - - -
Loans - - - -
Prepaid items - - - -
Total Assets $ 250,639 $ 13,085 $ 2,375 $ 184,913
LIABILITIES
Accounts payable and accrued liabilities $ - $ 5,699 $ 1,440 $ 24,958 Deposits payable - - - -
Due to other funds - 2,077 1,051 -
Unearned revenue - - - -
Advances from other funds - - - -
Total liabilities - 7,776 2,491 24,958
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - -
Lease-related - - - -
Total deferred inflows of resources - - - -
FUND BALANCES (DEFICITS)
Nonspendable - - - -
Restricted 250,639 5,309 - 159,955
Unassigned (deficit) - - (116) -
Total fund balances (deficits) 250,639 5,309 (116) 159,955 Total liabilities, deferred inflows of resources and
fund balances (deficits) $ 250,639 $ 13,085 $ 2,375 $ 184,913 Special Revenue Funds
Public
Infrastructure
Program Business District
Property and
Business
Improvement
Damage
Reimbursement
CITY OF NAPA, CALIFORNIA
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
138
ATTACHMENT 2
ASSETS
Cash and investments $ 12,006 $ 4,282 $ 6,033,769 $ 10,268,391 $ 5,068,281 Receivables (net of allowance for uncollectibles):
Accounts - 374,710 179,810 471,801 -
Interest 72 336 2,121 13,874 7,816
Federal, state and other governments 63,061 - - - - Loans - - - - -
Prepaid items - - - 332 1,050,000
Total Assets $ 75,139 $ 379,328 $ 6,215,700 $ 10,754,398 $ 6,126,097
LIABILITIES
Accounts payable and accrued liabilities $ 75,139 $ - $ - $ 938 $ 419,709 Deposits payable - - - - -
Due to other funds - 97,488 - - -
Unearned revenue - - - - 5,706,388
Advances from other funds - - - - -
Total liabilities 75,139 97,488 - 938 6,126,097
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 63,061 - - - -
Lease-related - - - - -
Total deferred inflows of resources 63,061 - - - -
FUND BALANCES (DEFICITS)
Nonspendable - - - 332 1,050,000
Restricted - 281,840 6,215,700 10,753,128 -
Unassigned (deficit) (63,061) - - - (1,050,000)
Total fund balances (deficits) (63,061) 281,840 6,215,700 10,753,460 - Total liabilities, deferred inflows of resources
and fund balances (deficits) $ 75,139 $ 379,328 $ 6,215,700 $ 10,754,398 $ 6,126,097 Special Revenue Funds
Permanent
Local Housing
Allocation
Road
Maintenance
and
Rehabilitation
Act Gas Tax Measure F
Encampment
Resolution
Grant
CITY OF NAPA, CALIFORNIA
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
139
ATTACHMENT 2
Special Revenue Funds
Golf Course
Enhanced
Infrastructure
Financing
District
Opioid
Settlement
Departmental
Special
Revenue
Total
Nonmajor
Funds
ASSETS
Cash and investments $ - $ 428,560 $ 489,128 $ 286,219 $ 43,907,908 Receivables (net of allowance for uncollectibles):
Accounts 46,572 - - 75,000 1,538,795
Interest - 345 - - 52,855
Federal, state and other governments - - - 321,350 731,222 Loans - - - - 6,272,863
Prepaid items - - - 150,526 1,209,754
Total Assets $ 46,572 $ 428,905 $ 489,128 $ 833,095 $ 53,713,397
LIABILITIES
Accounts payable and accrued liabilities $ 12,044 $ - $ - $ 105,761 $ 846,482 Deposits payable 10,000 - - - 10,000
Due to other funds 64,247 - - 307,178 1,117,894
Unearned revenue 46,572 - 489,128 - 6,296,151
Advances from other funds 1,341,450 - - - 1,341,450 Total liabilities 1,474,313 - 489,128 412,939 9,611,977
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - 129,721 6,603,924
Lease-related - - - - 2,353,750
Total deferred inflows of resources - - - 129,721 8,957,674
FUND BALANCES (DEFICITS)
Nonspendable - - - 150,526 1,209,754
Restricted - 428,905 - 139,909 36,677,552
Unassigned (deficit) (1,427,741) - - - (2,743,560) Total fund balances (deficits) (1,427,741) 428,905 - 290,435 35,143,746 Total liabilities, deferred inflows of resources
and fund balances (deficits) $ 46,572 $ 428,905 $ 489,128 $ 833,095 $ 53,713,397
CITY OF NAPA, CALIFORNIA
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
140
ATTACHMENT 2
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue Funds
Assessment
District
Tourism
Improvement
District
Community
Development
Block Grant Traffic
REVENUES
Taxes $ - $ - $ - $ -
Intergovernmental - - 512,538 -
Charges for services 890,426 1,240,224 214,123 252,886 Investment income (loss) 463,031 71,726 - 47,837
Miscellaneous - - - -
Total revenues 1,353,457 1,311,950 726,661 300,723
EXPENDITURES
Current:
General government
City council - - - -
Public safety
Police - - - 127,036
Community development - 1,384,811 651,009 -
Parks and recreation 55,588 - - -
Public works 5,107 - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 60,695 1,384,811 651,009 127,036 Excess (deficiency) of revenues
over (under) expenditures 1,292,762 (72,861) 75,652 173,687
OTHER FINANCING SOURCES (USES)
Transfers in 828,580 - - -
Transfers out (10,930) - - (680)
Total other financing sources (uses) 817,650 - - (680) Net change in fund balances 2,110,412 (72,861) 75,652 173,007 Fund balances (deficit) - beginning 7,678,710 1,447,656 (277,221) 716,882 Restatements - changes in reporting entity - - - -
Fund balances (deficit) - beginning, as restated 7,678,710 1,447,656 (277,221) 716,882 Fund balances (deficit) - ending $ 9,789,122 $ 1,374,795 $ (201,569) $ 889,889
CITY OF NAPA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
141
ATTACHMENT 2
Special Revenue Funds
Parking CalHome Grant
Public Safety
Programs
Parks and
Recreation Trust
Programs
REVENUES
Taxes $ - $ - $ - $ -
Intergovernmental - - - -
Charges for services 668,915 - - -
Investment income (loss) 446,194 15,042 2,396 9,436 Miscellaneous 105,000 - - 22,027
Total revenues 1,220,109 15,042 2,396 31,463
EXPENDITURES
Current:
General government
City council - - - -
Public safety
Police - - 1,621 -
Community development 647,240 104,251 - -
Parks and recreation - - - 98
Public works - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 647,240 104,251 1,621 98
Excess (deficiency) of revenues
over (under) expenditures 572,869 (89,209) 775 31,365
OTHER FINANCING SOURCES (USES)
Transfers in 562,112 - - -
Transfers out (68,370) (3,130) - -
Total other financing sources (uses) 493,742 (3,130) - - Net change in fund balances 1,066,611 (92,339) 775 31,365 Fund balances (deficit) - beginning 4,920,728 252,389 41,854 174,801 Restatements - changes in reporting entity - - - -
Fund balances (deficit) - beginning, as restated 4,920,728 252,389 41,854 174,801 Fund balances (deficit) - ending $ 5,987,339 $ 160,050 $ 42,629 $ 206,166
CITY OF NAPA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
142
ATTACHMENT 2
Special Revenue Funds
Public
Infrastructure
Program Business District
Property and
Business
Improvement
Damage
Reimbursement
REVENUES
Taxes $ - $ - $ - $ -
Intergovernmental - - - -
Charges for services - 255,563 536,318 69,228
Investment income (loss) 13,613 1,516 7,334 8,974
Miscellaneous - - - -
Total revenues 13,613 257,079 543,652 78,202
EXPENDITURES
Current:
General government
City council - - - 60,663
Public safety
Police - - - -
Community development - 255,582 537,229 -
Parks and recreation - - - -
Public works 128 - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 128 255,582 537,229 60,663
Excess (deficiency) of revenues
over (under) expenditures 13,485 1,497 6,423 17,539
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances 13,485 1,497 6,423 17,539 Fund balances (deficit) - beginning 237,154 3,812 (6,539) 142,416 Restatements - changes in reporting entity - - - -
Fund balances (deficit) - beginning, as restated 237,154 3,812 (6,539) 142,416 Fund balances (deficit) - ending $ 250,639 $ 5,309 $ (116) $ 159,955
CITY OF NAPA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
143
ATTACHMENT 2
Special Revenue Funds
Formerly
Nonmajor
Permanent Local
Housing
Allocation
Road
Maintenance and
Rehabilitation Act Gas Tax Measure T
REVENUES
Taxes $ - $ - $ - $ -
Intergovernmental 1,038,886 2,126,367 2,110,166 -
Charges for services 29,400 - - -
Investment income (loss) 967 81,282 163,159 -
Miscellaneous - - - -
Total revenues 1,069,253 2,207,649 2,273,325 -
EXPENDITURES
Current:
General government
City council - - - -
Public safety
Police - - - -
Community development 493,876 - - -
Parks and recreation - - - -
Public works - 215 776 -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 493,876 215 776 -
Excess (deficiency) of revenues
over (under) expenditures 575,377 2,207,434 2,272,549 -
OTHER FINANCING SOURCES (USES)
Transfers in - - 4,516,773 -
Transfers out - (2,315,900) (1,354,270) -
Total other financing sources (uses) - (2,315,900) 3,162,503 - Net change in fund balances 575,377 (108,466) 5,435,052 - Fund balances (deficit) - beginning (638,438) 390,306 780,648 2,469,759 Restatements - changes in reporting entity - - - (2,469,759) Fund balances (deficit) - beginning, as restated (638,438) 390,306 780,648 - Fund balances (deficit) - ending $ (63,061) $ 281,840 $ 6,215,700 $ -
CITY OF NAPA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
144
ATTACHMENT 2
Special Revenue Funds
Measure F
Encampment
Resolution Grant Golf Course
Enhanced
Infrastructure
Financing District
REVENUES
Taxes $ 2,544,911 $ - $ - $ 296,901
Intergovernmental - 4,441,292 - -
Charges for services - - 52,691 -
Investment income (loss) 442,061 274,837 - 8,021
Miscellaneous - - - -
Total revenues 2,986,972 4,716,129 52,691 304,922
EXPENDITURES
Current:
General government
City council - - - -
Public safety
Police - - - -
Community development 40,231 2,585,294 - 95
Parks and recreation - - 34,551 -
Public works - - - -
Capital outlay - 29,440 - -
Debt service:
Principal - 2,016,704 - -
Interest and fiscal charges - 83,296 - -
Total expenditures 40,231 4,714,734 34,551 95
Excess (deficiency) of revenues
over (under) expenditures 2,946,741 1,395 18,140 304,827
OTHER FINANCING SOURCES (USES)
Transfers in 233,642 - - -
Transfers out (25,340) - - (50,170)
Total other financing sources (uses) 208,302 - - (50,170) Net change in fund balances 3,155,043 1,395 18,140 254,657 Fund balances (deficit) - beginning 7,598,417 (1,395) (1,445,881) 174,248 Restatements - changes in reporting entity - - - -
Fund balances (deficit) - beginning, as restated 7,598,417 (1,395) (1,445,881) 174,248 Fund balances (deficit) - ending $ 10,753,460 $ - $ (1,427,741) $ 428,905
CITY OF NAPA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
145
ATTACHMENT 2
Special Revenue Funds
Opioid Settlement
Departmental
Special Revenue
Total
Nonmajor
Funds
REVENUES
Taxes $ - $ - $ 2,841,812
Intergovernmental - 474,157 10,703,406
Charges for services - - 4,209,774
Investment income (loss) - - 2,057,426
Miscellaneous - 160,000 287,027
Total revenues - 634,157 20,099,445
EXPENDITURES
Current:
General government
City council - 71,355 132,018
Public safety
Police - 450,251 578,908
Community development - - 6,699,618
Parks and recreation - 16,000 106,237
Public works - - 6,226
Capital outlay - - 29,440
Debt service:
Principal - - 2,016,704
Interest and fiscal charges - - 83,296
Total expenditures - 537,606 9,652,447
Excess (deficiency) of revenues
over (under) expenditures - 96,551 10,446,998
OTHER FINANCING SOURCES (USES)
Transfers in - 193,884 6,334,991
Transfers out - - (3,828,790)
Total other financing sources (uses) - 193,884 2,506,201 Net change in fund balances - 290,435 12,953,199
Fund balances (deficit) - beginning - - 24,660,306
Restatements - changes in reporting entity - - (2,469,759) Fund balances (deficit) - beginning, as restated - - 22,190,547 Fund balances (deficit) - ending $ - $ 290,435 $ 35,143,746
CITY OF NAPA, CALIFORNIA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
146
ATTACHMENT 2
Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Nonmajor Special Revenue Funds
147
ATTACHMENT 2
Assessment District Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services $ 676,800 $ 676,800 $ 890,426 $ 213,626 Investment income (loss) 44,480 44,480 463,031 418,551 Total revenues 721,280 721,280 1,353,457 632,177
EXPENDITURES
Current:
Parks and recreation 97,670 97,670 55,588 42,082
Public works 14,760 14,760 5,107 9,653
Total expenditures 112,430 112,430 60,695 51,735
Excess (deficiency) of revenues
over (under) expenditures 608,850 608,850 1,292,762 580,442
OTHER FINANCING SOURCES (USES)
Transfers in - - 828,580 828,580
Transfers out (10,930) (10,930) (10,930) -
Total other financing sources (uses) (10,930) (10,930) 817,650 828,580 Net change in fund balances $ 597,920 $ 597,920 2,110,412 $ 1,512,492 Fund balances - beginning 7,678,710
Fund balances - ending $ 9,789,122
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Assessment District Special Revenue Fund
For the Year Ended June 30, 2025
148
ATTACHMENT 2
Tourism Improvement District Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services $ 1,215,000 $ 1,215,000 $ 1,240,224 $ 25,224 Investment income (loss) 5,200 5,200 71,726 66,526
Total revenues 1,220,200 1,220,200 1,311,950 91,750
EXPENDITURES
Current:
Community development 1,659,510 1,684,349 1,384,811 299,538 Total expenditures 1,659,510 1,684,349 1,384,811 299,538 Net change in fund balances $ (439,310) $ (464,149) (72,861) $ (207,788) Fund balances - beginning 1,447,656
Fund balances - ending $ 1,374,795
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Tourism Improvement District Special Revenue Fund
For the Year Ended June 30, 2025
149
ATTACHMENT 2
Community Development Block Grant Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 644,620 $ 2,213,602 $ 512,538 $ (1,701,064) Charges for services 150,000 150,000 214,123 64,123 Total revenues 794,620 2,363,602 726,661 (1,636,941)
EXPENDITURES
Current:
Community development 828,570 1,952,415 651,009 1,301,406 Total expenditures 828,570 1,952,415 651,009 1,301,406 Net change in fund balances $ (33,950) $ 411,187 75,652 $ (335,535) Fund balances - beginning (277,221)
Fund balances - ending $ (201,569)
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Community Development Block Grant Special Revenue Fund
For the Year Ended June 30, 2025
150
ATTACHMENT 2
Traffic Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services $ 160,000 $ 660,000 $ 252,886 $ (407,114) Investment income (loss) 10,500 10,500 47,837 37,337 Total revenues 170,500 670,500 300,723 (369,777)
EXPENDITURES
Current:
Public safety
Police 60,700 720,507 127,036 593,471
Capital outlay 37,500 37,500 - 37,500
Total expenditures 98,200 758,007 127,036 630,971
Excess (deficiency) of revenues
over (under) expenditures 72,300 (87,507) 173,687 (1,000,748)
OTHER FINANCING SOURCES (USES)
Transfers out (680) (680) (680) -
Total other financing sources (uses) (680) (680) (680) - Net change in fund balances $ 71,620 $ (88,187) 173,007 $ 261,194 Fund balances - beginning 716,882
Fund balances - ending $ 889,889
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Traffic Special Revenue Fund
For the Year Ended June 30, 2025
151
ATTACHMENT 2
Parking Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services $ 708,670 $ 742,670 $ 668,915 $ (73,755) Investment income (loss) 49,940 49,940 446,194 396,254 Miscellaneous - - 105,000 105,000
Total revenues 758,610 792,610 1,220,109 427,499
EXPENDITURES
Current:
Community development 776,280 810,280 647,240 163,040 Total expenditures 776,280 810,280 647,240 163,040
Excess (deficiency) of revenues
over (under) expenditures (17,670) (17,670) 572,869 264,459
OTHER FINANCING SOURCES (USES)
Transfers in 12,000 12,000 562,112 550,112
Transfers out (68,370) (68,370) (68,370) -
Total other financing sources (uses) (56,370) (56,370) 493,742 550,112 Net change in fund balances $ (74,040) $ (74,040) 1,066,611 $ 1,140,651 Fund balances - beginning 4,920,728
Fund balances - ending $ 5,987,339
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Parking Special Revenue Fund
For the Year Ended June 30, 2025
152
ATTACHMENT 2
CalHome Grant Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services $ 100,000 $ 100,000 $ - $ (100,000) Investment income (loss) 6,790 6,790 15,042 8,252
Total revenues 106,790 106,790 15,042 (91,748)
EXPENDITURES
Current:
Community development 104,490 358,112 104,251 253,861 Total expenditures 104,490 358,112 104,251 253,861
Excess (deficiency) of revenues
over (under) expenditures 2,300 (251,322) (89,209) (345,609)
OTHER FINANCING SOURCES (USES)
Transfers out (3,130) (3,130) (3,130) -
Total other financing sources (uses) (3,130) (3,130) (3,130) - Net change in fund balances $ (830) $ (254,452) (92,339) $ 162,113 Fund balances - beginning 252,389
Fund balances - ending $ 160,050
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual CalHome Grant Special Revenue Fund
For the Year Ended June 30, 2025
153
ATTACHMENT 2
Public Safety Programs Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment income (loss) $ 1,000 $ 1,000 $ 2,396 $ 1,396 Total revenues 1,000 1,000 2,396 1,396
EXPENDITURES
Current:
Police 5,200 5,200 1,621 3,579
Total expenditures 5,200 5,200 1,621 3,579
Net change in fund balances $ (4,200) $ (4,200) 775 $ 4,975 Fund balances - beginning 41,854
Fund balances - ending $ 42,629
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Public Safety Programs Special Revenue Fund
For the Year Ended June 30, 2025
154
ATTACHMENT 2
Parks and Recreation Trust Programs Special Revenue Fund Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment income (loss) $ 3,120 $ 3,120 $ 9,436 $ 6,316 Miscellaneous 22,500 22,500 22,027 (473)
Total revenues 25,620 25,620 31,463 5,843
EXPENDITURES
Current:
Parks and recreation 22,500 124,464 98 124,366
Total expenditures 22,500 124,464 98 124,366
Net change in fund balances $ 3,120 $ (98,844) 31,365 $ 130,209 Fund balances - beginning 174,801
Fund balances - ending $ 206,166
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Parks and Recreation Trust Programs Special Revenue Fund For the Year Ended June 30, 2025
155
ATTACHMENT 2
Public Infrastructure Program Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment income (loss) $ 500 $ 500 $ 13,613 $ 13,113
Total revenues 500 500 13,613 13,113
EXPENDITURES
Current:
Public works - - 128 (128)
Total expenditures - - 128 (128)
Net change in fund balances $ 500 $ 500 13,485 $ 12,985 Fund balances - beginning 237,154
Fund balances - ending $ 250,639
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Public Infrastructure Program Special Revenue Fund
For the Year Ended June 30, 2025
156
ATTACHMENT 2
Business District Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services $ 309,660 $ 309,660 $ 255,563 $ (54,097) Investment income (loss) 100 100 1,516 1,416
Total revenues 309,760 309,760 257,079 (52,681)
EXPENDITURES
Current:
Community development 309,690 309,690 255,582 54,108 Total expenditures 309,690 309,690 255,582 54,108
Net change in fund balances $ 70 $ 70 1,497 $ 1,427
Fund balances - beginning 3,812
Fund balances - ending $ 5,309
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Business District Special Revenue Fund
For the Year Ended June 30, 2025
157
ATTACHMENT 2
Property and Business Improvement Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services $ 506,150 $ 506,150 $ 536,318 $ 30,168 Investment income (loss) 1,040 1,040 7,334 6,294
Total revenues 507,190 507,190 543,652 36,462
EXPENDITURES
Current:
Community development 506,660 506,660 537,229 (30,569) Total expenditures 506,660 506,660 537,229 (30,569) Net change in fund balances $ 530 $ 530 6,423 $ 5,893
Fund deficit - beginning (6,539)
Fund deficit - ending $ (116)
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Property and Business Improvement Special Revenue Fund
For the Year Ended June 30, 2025
158
ATTACHMENT 2
Damage Reimbursement Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services $ 100,000 $ 100,000 $ 69,228 $ (30,772) Investment income (loss) 2,000 2,000 8,974 6,974
Total revenues 102,000 102,000 78,202 (23,798)
EXPENDITURES
Current:
General government 400 73,611 60,663 12,948
Total expenditures 400 73,611 60,663 12,948
Net change in fund balances $ 101,600 $ 28,389 17,539 $ (10,850) Fund balances - beginning 142,416
Fund balances - ending $ 159,955
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Damage Reimbursement Special Revenue Fund
For the Year Ended June 30, 2025
159
ATTACHMENT 2
Permanent Local Housing Allocation Special Revenue Fund Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 495,920 $ 1,591,050 $ 1,038,886 $ (552,164) Charges for services - - 29,400 29,400
Investment income (loss) - - 967 967
Total revenues 495,920 1,591,050 1,069,253 (521,797)
EXPENDITURES
Current:
Community development 496,770 954,324 493,876 460,448 Total expenditures 496,770 954,324 493,876 460,448
Net change in fund balances $ (850) $ 636,726 575,377 $ (61,349) Fund deficit - beginning (638,438)
Fund deficit - ending $ (63,061)
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Permanent Local Housing Allocation Special Revenue Fund For the Year Ended June 30, 2025
160
ATTACHMENT 2
Road Maintenance and Rehabilitation Act Special Revenue Fund Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 1,986,480 $ 1,986,480 $ 2,126,367 $ 139,887 Investment income (loss) 8,000 8,000 81,282 73,282
Total revenues 1,994,480 1,994,480 2,207,649 213,169
EXPENDITURES
Current:
Public works 2,000 2,000 215 1,785
Total expenditures 2,000 2,000 215 1,785
Excess (deficiency) of revenues
over (under) expenditures 1,992,480 1,992,480 2,207,434 211,384
OTHER FINANCING SOURCES (USES)
Transfers out (1,715,900) (2,315,900) (2,315,900) - Total other financing sources (uses) (1,715,900) (2,315,900) (2,315,900) - Net change in fund balances $ 276,580 $ (323,420) (108,466) $ 214,954 Fund balances - beginning 390,306
Fund balances - ending $ 281,840
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Road Maintenance and Rehabilitation Act Special Revenue Fund For the Year Ended June 30, 2025
161
ATTACHMENT 2
Gas Tax Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 2,066,710 $ 2,066,710 $ 2,110,166 $ 43,456 Investment income (loss) - - 163,159 163,159
Total revenues 2,066,710 2,066,710 2,273,325 206,615
EXPENDITURES
Current:
Public works 500 500 776 (276)
Total expenditures 500 500 776 (276)
Excess (deficiency) of revenues
over (under) expenditures 2,066,210 2,066,210 2,272,549 206,891
OTHER FINANCING SOURCES (USES)
Transfers in - - 4,516,773 4,516,773
Transfers out (1,329,270) (1,929,270) (1,354,270) 575,000 Total other financing sources (uses) (1,329,270) (1,929,270) 3,162,503 5,091,773 Net change in fund balances $ 736,940 $ 136,940 5,435,052 $ 5,298,112 Fund balances - beginning 780,648
Fund balances - ending $ 6,215,700
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2025
162
ATTACHMENT 2
Measure F Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 2,505,000 $ 2,505,000 $ 2,544,911 $ 39,911
Investment income (loss) 82,500 82,500 442,061 359,561 Total revenues 2,587,500 2,587,500 2,986,972 399,472
EXPENDITURES
Current:
Community development 59,870 4,254,540 40,231 4,214,309 Total expenditures 59,870 4,254,540 40,231 4,214,309 Excess (deficiency) of revenues
over (under) expenditures 2,527,630 (1,667,040) 2,946,741 (3,814,837)
OTHER FINANCING SOURCES (USES)
Transfers in - - 233,642 233,642
Transfers out (25,340) (25,340) (25,340) -
Total other financing sources (uses) (25,340) (25,340) 208,302 233,642 Net change in fund balances $ 2,502,290 $ (1,692,380) 3,155,043 $ 4,847,423 Fund balances - beginning 7,598,417
Fund balances - ending $ 10,753,460
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure F Special Revenue Fund
For the Year Ended June 30, 2025
163
ATTACHMENT 2
Encampment Resolution Grant Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ - $ - $ 4,441,292 $ 4,441,292
Investment income (loss) - - 274,837 274,837
Total revenues - - 4,716,129 4,716,129
EXPENDITURES
Current:
Community development - 7,936,924 2,585,294 5,351,630 Capital outlay - 110,757 29,440 81,317
Debt service:
Principal - - 2,016,704 (2,016,704)
Interest and fiscal charges - - 83,296 (83,296)
Total expenditures - 8,047,681 4,714,734 3,332,947
Net change in fund balances $ - $ (8,047,681) 1,395 $ 8,049,076 Fund deficit - beginning (1,395)
Fund deficit - ending $ -
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Encampment Resolution Grant Special Revenue Fund
For the Year Ended June 30, 2025
164
ATTACHMENT 2
Golf Course Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services $ 41,000 $ 41,000 $ 52,691 $ 11,691 Total revenues 41,000 41,000 52,691 11,691
EXPENDITURES
Current:
Parks and recreation - - 34,551 (34,551)
Capital outlay 27,000 27,000 - 27,000
Total expenditures 27,000 27,000 34,551 (7,551)
Net change in fund balances $ 14,000 $ 14,000 18,140 $ 4,140 Fund deficit - beginning (1,445,881)
Fund deficit - ending $ (1,427,741)
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Golf Course Special Revenue Fund
For the Year Ended June 30, 2025
165
ATTACHMENT 2
Enhanced Infrastructure Financing District Special Revenue Fund Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 384,630 $ 384,630 $ 296,901 $ (87,729)
Investment income (loss) 520 520 8,021 7,501
Total revenues 385,150 385,150 304,922 (80,228)
EXPENDITURES
Current:
Community development 25,500 25,500 95 25,405
Total expenditures 25,500 25,500 95 25,405
Excess (deficiency) of revenues
over (under) expenditures 359,650 359,650 304,827 (105,633)
OTHER FINANCING SOURCES (USES)
Transfers out (50,170) (50,170) (50,170) -
Total other financing sources (uses) (50,170) (50,170) (50,170) - Net change in fund balances $ 309,480 $ 309,480 254,657 $ (54,823) Fund balances - beginning 174,248
Fund balances - ending $ 428,905
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Enhanced Infrastructure Financing District Special Revenue Fund For the Year Ended June 30, 2025
166
ATTACHMENT 2
Departmental Special Revenue Special Revenue Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ - $ 1,923,153 $ 474,157 $ (1,448,996) Miscellaneous - 85,000 160,000 75,000
Total revenues - 2,008,153 634,157 (1,373,996)
EXPENDITURES
Current:
City council - 1,262,042 71,355 1,190,687
Police - 854,995 450,251 404,744
Parks and recreation - 75,000 16,000 59,000
Fire - 10,000 - 10,000
Total expenditures - 2,202,037 537,606 1,664,431
Excess (deficiency) of revenues
over (under) expenditures - (193,884) 96,551 (3,038,427)
OTHER FINANCING SOURCES (USES)
Transfers in - 193,884 193,884 -
Total other financing sources (uses) - 193,884 193,884 - Net change in fund balances $ - $ - 290,435 $ 290,435
Fund balances - beginning -
Fund balances - ending $ 290,435
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Departmental Special Revenue Special Revenue Fund
For the Year Ended June 30, 2025
167
ATTACHMENT 2
Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Capital Project Funds
168
ATTACHMENT 2
City Capital Projects Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 22,592 $ 2,476,453 $ 396,947 $ (2,079,506) Charges for services - - 13,219 13,219
Miscellaneous - 242,176 30,000 (212,176)
Total revenues 22,592 2,718,629 440,166 (2,278,463)
EXPENDITURES
Current:
Public works 6,203,750 6,580,938 9,717,174 (3,136,236) Capital outlay 14,372,592 98,089,223 20,171,322 77,917,901 Total expenditures 20,576,342 104,670,161 29,888,496 74,781,665 Excess (deficiency) of revenues
over (under) expenditures (20,553,750) (101,951,532) (29,448,330) (77,060,128)
OTHER FINANCING SOURCES (USES)
Transfers in 23,655,830 39,213,720 16,606,451 (22,607,269) Transfers out (3,925,000) (5,180,030) (31,222,731) (26,042,701) Total other financing sources (uses) 19,730,830 34,033,690 (14,616,280) (48,649,970) Net change in fund balances $ (822,920) $ (67,917,842) (44,064,610) $ 23,853,232 Fund balances - beginning 80,462,108
Fund balances - ending $ 36,397,498
CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual City Capital Projects Fund
For the Year Ended June 30, 2025
169
ATTACHMENT 2
Internal Service Funds
The Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis.
The concept of major funds does not extend to internal service funds. For the Statement of Activities, the net revenues and expenses of each internal service fund are eliminated by netting them against the operations of the City departments that generated them. The remaining balance sheet items are consolidated with these same funds in the Governmental Activities Statement of Net Position. However, internal service funds are still presented separately in the Fund Financial Statements.
RISK MANAGEMENT FUND
The Risk Management Fund is an internal service fund established to account for resources and uses related to the City’s self-insurance program. The City’s self-insurance retention amounts are $150,000 for general liability claims, $300,000 for workers’ compensation claims and 100% of unemployment claims. The risk management function is funded by charges to the various City departments.
FLEET FUND
The Fleet Management Fund provides full-service, lifetime management of the vehicles and equipment used by all City operations. This begins with specification development and replacement scheduling, transitioning to in- service preparation, then performing regular repairs and scheduled maintenance and inspections. Also included in Fleet services are regulatory compliance, fuel data capture, decommissioning, and ultimately the disposal of said assets. The Fleet Management Division also administers the two City motor pools.
INFORMATION TECHNOLOGY REPLACEMENT FUND
The Information Technology (IT) Replacement Fund provides for the replacement of IT and telephone infrastructure throughout General Fund departments as necessary to maintain staff productivity.
POST-EMPLOYMENT BENEFIT FUND
The Postemployment Benefits Fund is established to collect contributions to cover the cost of retiree benefits for current and past employees. Expenditures from this fund includes payments for current retirees’ benefits earned in prior years and contributions to an irrevocable trust to provide resources from which future retiree benefits will be paid.
EQUIPMENT REPLACEMENT FUND
The Equipment Replacement Fund was established for the replacement of capital equipment as it becomes unserviceable, obsolete, or reaches a predetermined service life. 170
ATTACHMENT 2
Combining Statement of Net Position - Internal Service Funds Risk
Management Fleet
Information
Technology
Replacement
Post
Employment
Benefits
Equipment
Replacement
Total
Internal
Service
Funds
ASSETS
Current assets:
Cash and investments $ 29,038,104 $ 14,395,639 $ 2,369,758 $ 2,355,177 $ 1,095,763 $ 49,254,441 Receivables (net of uncollectibles):
Accounts - 32,303 - - - 32,303
Interest 37,408 20,257 3,406 - 1,591 62,662
Federal, state and other governments - - - 803,479 - 803,479 Prepaid items - - 144,705 - - 144,705
Restricted:
Restricted cash and investments - - - 10,092,414 - 10,092,414 Net OPEB asset 364 460 - 43,830 - 44,654
Total current assets 29,075,876 14,448,659 2,517,869 13,294,900 1,097,354 60,434,658 Noncurrent:
Capital assets, net - 15,073,613 - - - 15,073,613 Total noncurrent assets - 15,073,613 - - - 15,073,613 Total assets 29,075,876 29,522,272 2,517,869 13,294,900 1,097,354 75,508,271
DEFERRED OUTFLOWS OF RESOURCES
Pension-related 159,492 338,236 - - - 497,728
OPEB-related 23,979 30,280 - 2,887,307 - 2,941,566 Total deferred outflows of resources 183,471 368,516 - 2,887,307 - 3,439,294
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 393,191 469,584 34,799 (8,047) - 889,527 Due to other funds - 1,217,821 - - - 1,217,821
Compensated absences 35,205 33,058 - - - 68,263
Current portion of long-term debt - 17,312 - - - 17,312 Claims payable 3,889,740 - - - - 3,889,740
Total current liabilities 4,318,136 1,737,775 34,799 (8,047) - 6,082,663 Noncurrent liabilities:
Compensated absences 13,415 9,814 - - - 23,229
Noncurrent claims 11,587,261 - - - - 11,587,261
Net pension liability 917,549 1,945,849 - - - 2,863,398 Total noncurrent liabilities 12,518,225 1,955,663 - - - 14,473,888 Total liabilities 16,836,361 3,693,438 34,799 (8,047) - 20,556,551
DEFERRED INFLOWS OF RESOURCES
OPEB-related 25,445 32,131 - 3,063,855 - 3,121,431 Total deferred inflows of resources 25,445 32,131 - 3,063,855 - 3,121,431
NET POSITION
Net investment in capital assets - 15,056,301 - - - 15,056,301 Restricted - - - 10,137,068 - 10,137,068
Unrestricted 12,397,541 11,108,918 2,483,070 2,989,331 1,097,354 30,076,214 Total net position $ 12,397,541 $ 26,165,219 $ 2,483,070 $ 13,126,399 $ 1,097,354 $ 55,269,583
CITY OF NAPA, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
171
ATTACHMENT 2
Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds Risk
Management Fleet
Information
Technology
Replacement
Post
Employment
Benefits
Equipment
Replacement
Total Internal
Service
Funds
OPERATING REVENUES
Charges for services $ 15,849,188 $ 5,741,437 $ 374,520 $ 1,141,739 $ - $ 23,106,884 Miscellaneous - 16,884 - - - 16,884
Total operating revenues 15,849,188 5,758,321 374,520 1,141,739 - 23,123,768
OPERATING EXPENSES
Employee services and benefits 566,708 470,569 67,600 (825,392) - 279,485 Materials and services 2,180,113 1,471,372 630,178 1,243,720 545 5,525,928 Depreciation and amortization - 2,570,149 - - - 2,570,149 Insurance premiums and claims 11,568,443 - - - - 11,568,443 Total operating expenses 14,315,264 4,512,090 697,778 418,328 545 19,944,005 Operating income (loss) 1,533,924 1,246,231 (323,258) 723,411 (545) 3,179,763
NONOPERATING REVENUES
(EXPENSES)
Investment income (loss) 1,180,984 782,771 197,635 807,945 46,661 3,015,996 Interest and fiscal charges - (14) - - - (14)
Gains (losses) on sale of capital asset - 204,272 - - - 204,272 Total nonoperating revenues (expenses) 1,180,984 987,029 197,635 807,945 46,661 3,220,254 Income (loss) before transfers 2,714,908 2,233,260 (125,623) 1,531,356 46,116 6,400,017 Transfers in 262,257 60,000 100,000 1,000,000 150,000 1,572,257 Transfers out (41,580) - - - (60,000) (101,580)
Change in net position 2,935,585 2,293,260 (25,623) 2,531,356 136,116 7,870,694 Net position - beginning 9,461,956 23,871,959 2,508,693 10,595,043 961,238 47,398,889 Net position - ending $ 12,397,541 $ 26,165,219 $ 2,483,070 $ 13,126,399 $ 1,097,354 $ 55,269,583
CITY OF NAPA, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2025
172
ATTACHMENT 2
Combining Statement of Cash Flows - Internal Service Funds Risk
Management Fleet
Information
Technology
Replacement
Post
Employment
Benefits
Equipment
Replacement Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund charges $ 15,849,188 $ 5,710,965 $ 374,520 $ 1,141,739 $ - $ 23,076,412 Payments to suppliers and service providers (13,855,295) (1,224,014) (631,727) (1,251,272) (545) (16,962,853) Payments to employees for salaries and
benefits (623,313) (956,915) (67,600) - - (1,647,828) Other receipts (payments) 1,153,001 16,884 - - - 1,169,885 Net cash provided by (used for)
operating activities 2,523,581 3,546,920 (324,807) (109,533) (545) 5,635,616
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds 262,257 60,000 100,000 1,000,000 150,000 1,572,257 Transfers to other funds (41,580) - - - (60,000) (101,580) Receipts to other funds on interfund
borrowings - 1,217,821 - - - 1,217,821
Operating grants and contributions - - - 440 - 440 Net cash provided by (used for)
noncapital financing activities 220,677 1,277,821 100,000 1,000,440 90,000 2,688,938
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from capital debt - - - - - -
Acquisition and construction of capital assets - (5,083,239) - - - (5,083,239) Principal paid on capital debt - (22,514) - - - (22,514) Interest paid on capital debt - (14) - - - (14)
Net cash provided by (used for)
capital and related financing activities - (5,105,767) - - - (5,105,767)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 1,182,957 786,325 198,367 807,945 46,778 3,022,372 Net cash provided by (used for)
investing activities 1,182,957 786,325 198,367 807,945 46,778 3,022,372 Net increase (decrease) in
cash and cash equivalents 3,927,215 505,299 (26,440) 1,698,852 136,233 6,241,159 Cash and cash equivalents-beginning 25,110,889 13,890,340 2,396,198 10,748,739 959,530 53,105,696 Cash and cash equivalents-ending $ 29,038,104 $ 14,395,639 $ 2,369,758 $ 12,447,591 $ 1,095,763 $ 59,346,855
CITY OF NAPA, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
173
ATTACHMENT 2
Risk
Management Fleet
Information
Technology
Replacement
Post
Employment
Benefits
Equipment
Replacement Totals
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) $ 1,533,924 $ 1,246,231 $ (323,258) $ 723,411 $ (545) $ 3,179,763 Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense - 2,570,149 - - - 2,570,149 (Increase) decrease in accounts receivable - (30,472) - - - (30,472) (Increase) decrease in prepaid items 6,120 - (4,571) - - 1,549 Increase (decrease) in accounts payable
and accrued liabilities (112,859) 247,358 3,022 (7,552) - 129,969 Increase (decrease) in compensated
absences 6,431 (4,803) - - - 1,628
Increase (decrease) in claims and
judgments 1,153,001 - - - - 1,153,001
Increase (decrease) in pension and related
items (55,906) (463,181) - - - (519,087)
Increase (decrease) in OPEB and related
items (7,130) (18,362) - (825,392) - (850,884)
Total adjustments 989,657 2,300,689 (1,549) (832,944) - 2,455,853 Net cash provided by (used for)
operating activities $ 2,523,581 $ 3,546,920 $ (324,807) $ (109,533) $ (545) $ 5,635,616
CITY OF NAPA
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2025
174
ATTACHMENT 2
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175
ATTACHMENT 2
STATISTICAL SECTION
176
ATTACHMENT 2
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177
ATTACHMENT 2
Contents
Financial Trends Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 1: Net Position by Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 2: Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 3: Fund Balance of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 4: Changes in Fund Balance of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 Revenue Capacity Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 5: Assessed Value and Estimated Actual Value of Taxable Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 6: Direct and Overlapping Property Taxes Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 7: Principal Property Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 8: Property Tax Levies and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Debt Capacity Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 9: Ratios of Outstanding Debt by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 10: Direct and Overlapping Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 11: Legal Debt Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 12: Pledged Revenue Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 Demographic and Economic Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 13: Demographic and Economic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 14: Principal Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 15: Full-Time Equivalent City Government Employees by Function/Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Operating Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 16: Operating Indicators by Function/Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 17: Capital Asset Statistics by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
CITY OF NAPA, CALIFORNIA - STATISTICAL SECTION (UNAUDITED) 178
ATTACHMENT 2
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179
ATTACHMENT 2
Financial Trends Information
180
ATTACHMENT 2
Net Position by Component 1: Net Position by Component Last Ten Fiscal Years
(Accrual basis accounting, in thousands)
Fiscal Year
2025 2024 2023 2022 2021
Governmental Activities
Net investment in capital assets $ 373,101 $ 359,880 $ 352,519 $ 357,052 $ 364,600 Restricted 145,308 76,246 81,709 128,514 91,843
Unrestricted (deficit) (26,330) 27,014 3,856 (67,586) (71,626) Total governmental activities net position 492,079 463,140 438,084 417,980 384,817 Business-type Activities
Net investment in capital assets 84,855 70,800 69,439 68,321 69,287 Restricted 8 1 2 - -
Unrestricted 79,509 78,143 77,020 75,591 60,621
Total business-type activities net position 164,372 148,944 146,461 143,912 129,908 Primary Government
Net investment in capital assets 457,956 430,680 421,762 425,373 433,887 Restricted 145,316 76,247 81,710 128,514 91,843
Unrestricted (deficit) 53,179 105,157 81,073 8,005 (11,005) Total primary government activities net position $ 656,451 $ 612,084 $ 584,545 $ 561,892 $ 514,725 Source: City of Napa - Finance Department
CITY OF NAPA, CALIFORNIA - FINANCIAL TRENDS INFORMATION 181
ATTACHMENT 2
Net Position by Component (Continued)
Last Ten Fiscal Years
(Accrual basis accounting, in thousands)
Fiscal Year
2020 2019 2018 2017 2016
Governmental Activities
Net investment in capital assets $ 378,521 $ 358,507 $ 369,603 $ 351,563 $ 351,129 Restricted 78,781 82,878 83,834 43,100 41,722
Unrestricted (deficit) (54,455) (55,165) (57,495) (33,037) (41,524) Total governmental activities net position 402,847 386,220 395,942 361,626 351,327 Business-type Activities
Net investment in capital assets 70,385 70,082 71,873 73,653 75,328 Restricted - - 12,398 12,667 724
Unrestricted 44,300 33,891 14,499 25,684 37,519
Total business-type activities net position 114,685 103,973 98,770 112,004 113,571 Primary Government
Net investment in capital assets 448,906 428,589 441,476 425,216 426,457 Restricted 78,781 82,878 96,232 55,767 42,446
Unrestricted (deficit) (10,155) (21,274) (42,996) (7,354) (4,005) Total primary government activities net position $ 517,532 $ 490,193 $ 494,712 $ 474,629 $ 464,898 Source: City of Napa - Finance Department
Note: 1The significant decrease in Unrestricted Net Position in FY2015 and FY2018 is due to the implementation GASB Statement Nos. 68 and 75 respectively.
CITY OF NAPA, CALIFORNIA - FINANCIAL TRENDS INFORMATION 182
ATTACHMENT 2
Changes in Net Position 2: Changes in Net Position
Last Ten Fiscal Years
(Accrual basis accounting, in thousands)
Fiscal Year
2025 2024 2023 2022 2021
Expenses:
Governmental activities
General government $ 36,426 $ 32,532 $ 24,416 $ 15,415 $ 16,051 Public safety 70,914 65,896 62,732 51,549 60,348
Public works 36,835 32,374 31,086 31,716 36,010
Parks & recreation 12,669 11,211 9,746 8,365 6,797 Community development 37,705 34,847 35,898 24,337 25,787 Interest on long-term debt 206 227 454 - -
Total Governmental activities expenses 194,755 177,087 164,332 131,381 144,992 Business-type activities
Water 36,104 38,640 33,097 29,899 32,044
Solid waste and recycling 44,022 43,518 44,355 34,503 32,941 Housing - - - - -
Total business-type activities expenses 80,126 82,158 77,452 64,402 64,985 Total Primary government expenses $ 274,881 $ 259,245 $ 241,784 $ 195,783 $ 209,977 Source: City of Napa - Finance Department
CITY OF NAPA, CALIFORNIA - FINANCIAL TRENDS INFORMATION 183
ATTACHMENT 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual basis accounting, in thousands)
Fiscal Year
2020 2019 2018 2017 2016
Expenses:
Governmental activities
General government $ 19,195 $ 12,251 $ 15,239 $ 14,341 $ 15,519 Public safety 60,967 57,304 49,743 44,774 39,402
Public works 8,455 32,576 30,825 23,840 19,689
Parks & recreation 8,928 8,634 10,576 9,378 8,874
Community development 27,095 24,738 25,322 5,809 8,538 Interest on long-term debt - - - - -
Total Governmental activities expenses 124,640 135,503 131,705 98,142 92,022 Business-type activities
Water 32,327 28,060 27,174 27,553 25,133
Solid waste and recycling 34,339 30,475 27,328 23,373 21,425 Housing - - - 14,846 12,623
Total business-type activities expenses 66,666 58,535 54,502 66,772 59,181 Total Primary government expenses $ 191,306 $ 194,038 $ 186,207 $ 163,914 $ 151,203 Source: City of Napa - Finance Department
CITY OF NAPA, CALIFORNIA - FINANCIAL TRENDS INFORMATION 184
ATTACHMENT 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual basis accounting, in thousands)
Fiscal Year
2025 2024 2023 2022 2021
Program Revenues:
Governmental activities
Charges for Services
General Government $ 9,026 $ 7,357 $ 9,672 $ 9,932 $ 6,229 Public Safety 9,625 7,500 5,925 9,147 8,353
Public Works 4,674 4,734 2,814 2,819 1,627
Parks & Recreation 2,359 1,668 2,266 3,933 1,084
Community Development 10,219 8,565 8,205 11,048 7,230 Operating grants and contributions 37,795 33,226 23,773 18,663 20,523 Capital grants and contributions 14,553 15,726 14,652 15,734 10,631 Total governmental activities program revenues 88,251 78,776 67,307 71,276 55,677 Business type activities
Charges for Services
Water 48,110 38,531 37,753 34,909 39,512
Materials Diversion 48,337 43,103 44,477 42,836 39,219 Housing - - - - -
Operating grants and contributions 180 524 2,913 2,325 2,678 Capital grants and contributions 357 2,873 1,181 1,504 1,274 Total business-type activities program revenues 96,984 85,032 86,325 81,575 82,684 Total Primary government revenues $ 185,235 $ 163,808 $ 153,632 $ 152,851 $ 138,361 Net (expense)/revenue
Governmental activities $ (106,504) $ 78,776 $ (97,026) $ (60,106) $ (89,315) Business-type activities 16,858 85,031 8,872 17,172 17,698 Total Primary government net expense $ (89,646) $ 163,807 $ (88,154) $ (42,934) $ (71,617) Source: City of Napa - Finance Department
CITY OF NAPA, CALIFORNIA - FINANCIAL TRENDS INFORMATION 185
ATTACHMENT 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual basis accounting, in thousands)
Fiscal Year
2020 2019 2018 2017 2016
Program Revenues:
Governmental activities
Charges for Services
General Government $ 14,604 $ 8,237 $ 9,387 $ 10,303 $ 7,129 Public Safety 8,515 8,153 8,530 7,587 7,617
Public Works 3,141 2,059 1,840 1,407 1,378
Parks & Recreation 2,065 2,300 1,423 2,008 1,323
Community Development 9,092 7,829 14,334 8,962 5,959 Operating grants and contributions 15,858 15,822 16,222 3,264 4,652 Capital grants and contributions 8,583 14,388 28,028 3,950 5,359 Total governmental activities program revenues 61,858 58,788 79,764 37,481 33,417 Business type activities
Charges for Services
Water 41,559 33,209 30,687 26,849 26,980
Materials Diversion 34,472 28,584 28,625 26,963 26,487 Housing - - - 1,337 1,236
Operating grants and contributions 1,262 3,200 365 12,298 11,860 Capital grants and contributions 1,375 803 2,189 1,072 3,195 Total business-type activities program revenues 78,668 65,796 61,866 68,519 69,758 Total Primary government revenues $ 140,526 $ 124,584 $ 141,630 $ 106,000 $ 103,175 Net (expense)/revenue
Governmental activities $ (62,782) $ (76,715) $ (51,942) $ (60,660) $ (58,606) Business-type activities 12,001 7,261 7,365 2,747 10,577 Total Primary government net expense $ (50,781) $ (69,454) $ (44,577) $ (57,913) $ (48,029) Source: City of Napa - Finance Department
CITY OF NAPA, CALIFORNIA - FINANCIAL TRENDS INFORMATION 186
ATTACHMENT 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual basis accounting, in thousands)
Fiscal Year
2025 2024 2023 2022 2021
General revenues and other changes in net position
Governmental activities
Taxes
Property taxes $ 52,285 $ 50,441 $ 48,642 $ 42,180 $ 41,128 Franchise taxes 2,146 2,227 2,222 2,043 1,970
Sales taxes 28,514 22,659 22,593 20,360 17,557
Transient cccupancy 33,396 31,905 34,666 32,245 12,670 Investment earnings - - 4,364 (9,771) 70
Sale of capital assets - - - - 240
Use of money and property** 13,610 10,367 - - -
Other** 629 501 - - -
Transfers 5,485 5,269 3,803 3,623 3,013
Total governmental activities 136,065 123,368 116,289 90,679 76,649 Business -type activities
Investment earnings - - (2,529) 455 538
Sale of capital assets - - - - -
Use of money and property 5,859 4,333 - - -
Other 471 546 - - -
Transfers (5,485) (5,269) (3,803) (3,623) (3,013)
Total business-type activities 845 (390) (6,332) (3,168) (2,475) Total primary government 136,910 122,978 110,957 87,511 74,174 Special Items (Transfer to Successor Agency Trust) - - - - - Extraordinary Items - Governmental activities - - - - - Change in net position
Governmental activities 29,561 25,057 19,264 (6,346) 16,542 Business-type activities 17,703 (390) 78,699 5,704 14,697 Total primary government $ 47,264 $ 24,667 $ 97,963 $ (641) $ 31,239 Source: City of Napa - Finance Department
Note: In FY2024, two additional categories were added under general revenue: use of money and property, and other.
CITY OF NAPA, CALIFORNIA - FINANCIAL TRENDS INFORMATION 187
ATTACHMENT 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual basis accounting, in thousands)
Fiscal Year
2020 2019 2018 2017 2016
General revenues and other changes in net position
Governmental activities
Taxes
Property taxes $ 35,816 $ 35,256 $ 31,478 $ 28,684 $ 28,431 Franchise taxes 1,991 2,019 2,070 2,057 2,014
Sales taxes 15,751 18,153 16,778 16,059 15,947
Transient cccupancy 18,098 23,530 20,076 19,460 18,233 Investment earnings 2,058 2,085 (158) 99 574
Sale of capital assets 2,476 61 268 - -
Use of money and property** - - - - -
Other** - - - - -
Transfers 3,222 3,951 4,149 4,408 4,334
Total governmental activities 79,412 85,055 74,661 70,767 69,533 Business -type activities
Investment earnings 1,934 1,853 318 93 544
Sale of capital assets - 40 - - 16
Use of money and property - - - - -
Other - - - - -
Transfers (3,222) (3,951) (4,149) (4,408) (4,334)
Total business-type activities (1,288) (2,058) (3,831) (4,315) (3,774) Total primary government 78,124 82,997 70,830 66,452 65,759 Special Items (Transfer to Successor Agency Trust) - - - - 19 Extraordinary Items - Governmental activities - - - - - Change in net position
Governmental activities (9,904) 22,273 22,718 19,016 11,688 Business-type activities 16,410 9,943 3,534 (1,567) 6,803 Total primary government $ 6,507 $ 32,216 $ 26,252 $ 17,449 $ 18,491 Source: City of Napa - Finance Department
CITY OF NAPA, CALIFORNIA - FINANCIAL TRENDS INFORMATION 188
ATTACHMENT 2
Fund Balance of Government Funds 3: Fund Balance of Governmental Funds Last Ten Fiscal Years
(Accrual basis accounting, in thousands)
Fiscal Year
2025 2024 2023 2022 2021
General Fund
Nonspendable $ 3,294 $ 3,626 $ 3,773 $ 2,691 $ 3,148
Restricted 6,082 354 316 5,151 317
Committed 25,946 16,635 15,522 15,396 15,396
Assigned - 2,995 1,882 8,563 6,424
Unassigned (deficit) 23,928 24,871 20,352 (7,678) 5,490 Total general fund 59,250 48,481 41,845 24,123 30,775 All other governmental funds
Nonspendable 1,230 5,333 61 13 13
Restricted 129,088 56,484 52,995 85,586 69,369
Committed 20,245 78,498 69,552 29,795 22,462
Assigned - - - - -
Unassigned (deficit) (2,744) (2,369) (2,152) (1,626) (1,597) Total all other governmental funds $ 147,819 $ 137,946 $ 120,456 $ 113,768 $ 90,247 Source: City of Napa - Finance Department
CITY OF NAPA, CALIFORNIA - FINANCIAL TRENDS INFORMATION 189
ATTACHMENT 2
Fund Balance of Government Funds (Continued)
Last Ten Fiscal Years
(Accrual basis accounting, in thousands)
Fiscal Year
2020 2019 2018 2017 2016
General Fund
Nonspendable $ 3,466 $ 4,002 $ 3,411 $ 1,275 $ 537
Restricted 263 195 125 73 51
Committed 15,396 13,554 13,004 2,422 500
Assigned 4,600 12,114 7,771 21,043 18,874
Unassigned (deficit) 7,008 6,116 4,107 1,724 3,051 Total general fund 30,733 35,981 28,418 26,537 23,013 All other governmental funds
Nonspendable 12 11 - 675 -
Restricted 63,482 56,870 51,282 43,465 38,181
Committed 22,466 25,997 32,552 28,057 31,698
Assigned - - - 208 1,589
Unassigned (deficit) (1,593) (1,611) (1,615) (1,609) (1,662) Total all other governmental funds $ 84,367 $ 81,267 $ 82,219 $ 70,796 $ 69,806 Source: City of Napa - Finance Department
CITY OF NAPA, CALIFORNIA - FINANCIAL TRENDS INFORMATION 190
ATTACHMENT 2
Changes in Fund Balances of Governmental Funds 4: Changes in Fund Balance of Governmental Funds Last Ten Fiscal Years
(Modified accrual basis accounting, in thousands)
Fiscal Year
2025 2024 2023 2022 2021
Revenues
Taxes $ 115,565 $ 106,485 $ 107,354 $ 79,477 $ 57,006
Licenses and permits 9,388 8,537 7,744 7,310 7,881 Intergovernmental 55,353 51,315 40,557 56,412 49,564 Charges for services 20,809 19,880 14,186 18,694 11,272 Investment income (loss) 10,594 8,170 5,190 (9,155) 249 Miscellaneous 629 501 510 471 279
Contribution from owners (Gasser CFD) - - - - -
Total Revenues 212,338 194,888 175,541 153,209 126,251 Expenditures
General government
City Council 359 341 303 313 293
City Clerk 1,363 1,163 1,071 1,155 1,029
City Manager 5,514 6,856 1,786 1,549 1,253
Finance 4,637 4,362 8,261 7,357 6,873
City Attorney 1,679 1,499 1,448 1,269 1,000
Human Resources 2,208 2,361 1,924 1,451 1,173
General Services 12,436 9,583 7,753 4,063 2,874
Public safety
Police 39,752 37,645 35,062 33,566 31,498
Fire 28,007 24,896 23,386 23,305 21,702
Community Development 37,209 34,521 35,511 25,058 25,297 Parks & Recreation 11,276 10,511 8,987 8,625 6,416 Public Works 26,036 21,240 20,323 15,753 11,932
Capital Outlay 23,602 22,292 7,695 9,232 10,939
Debt Service
Principal 4,030 3,439 851 407 216
Interest and fiscal charges 294 254 264 52 48
Total Expenditures 198,402 180,966 154,628 133,154 122,542 Excess of revenues over/(under) expenditures 13,936 13,923 20,914 20,056 3,710 Other financing sources (uses)
Transfer in 52,909 34,164 63,961 29,958 14,981
Transfer out (48,894) (32,811) (60,534) (30,449) (12,765) Lease issuance 802 5,904 283 82 -
Subscription issuance 1,924 2,942 60 - -
Sale of capial assets - - - - -
Total Other Financing Sources 6,741 10,199 3,770 (409) 2,216 Extraordinaary Items (Transfer to/from Successor Agency Trust) - - - - -
Net Change in fund balances $ 20,677 $ 24,122 $ 24,684 $ 19,647 $ 5,926 Debt service as a percentage of non-capital expenditures 2% 2% 1% 0% 0% Source: City of Napa - Finance Department
CITY OF NAPA, CALIFORNIA - FINANCIAL TRENDS INFORMATION 191
ATTACHMENT 2
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
(Modified accrual basis accounting, in thousands)
Fiscal Year
2020 2019 2018 2017 2016
Revenues
Taxes $ 59,358 $ 64,379 $ 56,992 $ 53,173 $ 51,555
Licenses and permits 6,667 6,350 6,462 6,082 5,753 Intergovernmental 40,542 48,581 37,860 20,693 24,078 Charges for services 13,465 11,184 24,272 13,961 11,651 Investment income (loss) 4,565 4,317 97 173 1,238
Miscellaneous 2,903 554 1,094 3,196 681
Contribution from owners (Gasser CFD) - - 18,005 - - Total Revenues 127,500 135,365 144,783 97,279 94,956 Expenditures
General government - -
City Council 375 311 291 307 317
City Clerk 950 1,012 824 983 795
City Manager 1,728 1,236 1,217 1,228 1,185
Finance 7,032 6,561 6,285 6,168 5,351
City Attorney 1,197 1,037 1,100 1,038 928
Human Resources 1,255 1,121 1,200 1,154 1,146
General Services 2,765 2,960 3,274 1,960 1,907
Public safety
Police 32,244 30,124 28,797 27,061 25,786
Fire 19,553 19,327 18,248 17,113 15,818
Community Development 26,157 23,790 25,123 7,536 7,203 Parks & Recreation 8,495 8,291 10,210 9,373 8,855
Public Works 11,974 11,209 12,411 9,443 10,047
Capital Outlay 18,473 18,064 32,006 13,987 10,900
Debt Service
Principal 211 206 200 373 320
Interest and fiscal charges 54 59 64 13 23
Total Expenditures 132,460 125,308 141,250 97,737 90,581 Excess of revenues over/(under) expenditures (4,960) 10,057 3,534 (458) 4,375 Other financing sources (uses)
Transfer in 27,211 21,679 23,770 12,902 21,936
Transfer out (26,787) (19,354) (19,574) (8,010) (17,495) Lease issuance - - - - -
Subscription issuance - - - - -
Sale of capial assets 2,392 - 155 79 2,933
Total Other Financing Sources 2,816 2,325 4,351 4,971 7,374 Extraordinaary Items (Transfer to/from Successor Agency Trust) - - - 19 2,173
Net Change in fund balances $ (2,144) $ 12,382 $ 7,885 $ 4,532 $ 13,922 Debt service as a percentage of non-capital expenditures 0% 0% 0% 0% 0% Source: City of Napa - Finance Department
CITY OF NAPA, CALIFORNIA - FINANCIAL TRENDS INFORMATION 192
ATTACHMENT 2
Revenue Capacity Information
ATTACHMENT 2
Assessed Value and Estimated Actual Value of Taxable Property 5: Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(in millions)
Fiscal Year Real Property Personal Property
Total Taxable
Assessed Value
Net Increase /
(Decrease)
Amount
Net
Increase % Direct Tax Rate
2016 $ 10,056 $ 265 $ 10,321 $ 618 6% 0.20484%
2017 10,696 291 10,993 672 7% 0.20636%
2018 11,403 308 11,711 718 7% 0.20786%
2019 12,044 321 12,365 654 6% 0.20757%
2020 12,964 337 13,301 936 8% 0.21005%
2021 13,582 361 13,943 642 5% 0.21091%
2022 14,171 357 14,528 585 4% 0.21075%
2023 15,245 359 15,604 1,076 7% 0.19242%
2024 16,376 416 16,792 1,188 8% 0.19168%
2025 16,944 463 17,408 616 4% 0.19222%
Source: HdL, Coren & Cone as of FY25
Note: Table has been restated from previous years to comply with GASB Statement No. 44
CITY OF NAPA, CALIFORNIA - REVENUE CAPACITY INFORMATION 194
ATTACHMENT 2
Direct and Overlapping Property Tax Rates 6: Direct and Overlapping Property Taxes Rates Last Ten Fiscal Years
Fiscal Year County City Education
Lake Park
Maintenance
District
River Park
Maintenance
District Total
2016 1.0000% 0.0150% 0.0889% 0.1125% 0.1688% 1.3852%
2017 1.0000% 0.0150% 0.1396% 0.1125% 0.1688% 1.4359%
2018 1.0000% 0.0150% 0.1261% 0.1125% 0.1688% 1.4224%
2019 1.0000% 0.0150% 0.1217% 0.1125% 0.1688% 1.4180%
2020 1.0000% 0.0150% 0.1103% 0.1125% 0.1688% 1.4066%
2021 1.0000% 0.0150% 0.1061% 0.1125% 0.1688% 1.4024%
2022 1.0000% 0.0150% 0.1061% 0.1125% 0.1688% 1.4024%
2023 1.0000% 0.0150% 0.1007% 0.1125% 0.1688% 1.3970%
2024 1.0000% 0.0150% 0.0951% 0.1125% 0.1688% 1.3914%
2025 1.0000% 0.0150% 0.0945% 0.1125% 0.1688% 1.3908%
Source: Napa County Auditor data, HdL, Coren & Cone as of FY2025.
CITY OF NAPA, CALIFORNIA - REVENUE CAPACITY INFORMATION 195
ATTACHMENT 2
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196
ATTACHMENT 2
Principal Property Taxpayers 7: Principal Property Taxpayers Last Ten Fiscal Years
(Accrual basis accounting, in thousands)
2025 2016
Taxpayer Assessed Value Rank
Percentage of
Total Assessed
Valuation Assessed Value Rank
Percentage of
Total Assessed
Valuation
Meritage Resort LLC $ 266,467,710 1 1.53 % $ 92,854,818 2 0.95 % SRGA Resort LP 193,383,847 2 1.11 % - 0.00 %
Fairfield Napa Phase I/II LLC 156,658,125 3 0.90 % - 0.00 % KHP V Napa LLC 104,241,885 4 0.60 % - 0.00 %
Mani NVR Napa (DE) LLC 92,952,450 5 0.53 % - 0.00 % Napa LW Hotel Associates LP 89,083,239 6 0.51 % - 0.00 % TC Hawthorne LLC ET AL 82,053,777 7 0.47 % - 0.00 % IA Lodging Napa First LLC 71,401,767 8 0.41 % 68,733,238 4 0.70 % South Napa Fee LLC 68,175,614 9 0.39 % 51,486,446 6 0.53 % Prime Spain Glen Drive LLC AL 63,657,147 10 0.37 % - 0.00 % Kaiser - 0.00 % 270,490,811 1 2.76 %
Inland American Lodging Napa Solano LLC - 0.00 % 73,372,381 3 0.75 % Hawthorn Village Limited Partnership - 0.00 % 54,931,686 5 0.56 % Chelsea Financing Partnership LP - 0.00 % 45,445,695 7 0.46 % Shell Owners Association West - 0.00 % 41,420,180 7 0.42 % First Napa Acquisition LLC - 0.00 % 39,237,859 9 0.40 % Napa Crossing Soth LLC - 0.00 % 33,956,535 10 0.35 % Total $ 1,188,075,561 6.82 % $ 771,929,649 7.88 %
Source: HdL, Coren & Cone as of FY2025
Note: FY25 excluding industrial general fund
CITY OF NAPA, CALIFORNIA - REVENUE CAPACITY INFORMATION 197
ATTACHMENT 2
Property Tax Levies and Collections 8: Property Tax Levies and Collections Last Ten Fiscal Years
Collected within the Fiscal Year
of the Levy
Fiscal Year ended
June 30
Total Tax Levy for
Fiscal Year1 Amount Percentage of Levy
2016 $ 17,253,718 $ 17,253,718 100%
2017 17,959,034 17,959,034 100%
2018 19,708,417 19,708,417 100%
2019 22,306,678 22,306,678 100%
2020 22,930,519 22,930,519 100%
2021 25,138,080 25,138,080 100%
2022 30,579,862 30,579,862 100%
2023 29,556,237 29,556,237 100%
2024 32,925,230 32,925,230 100%
2025 34,445,604 34,445,604 100%
1 Information from Tyler Munis general ledger
Note: 1Levy does not include ERAF or RDA pass through.
CITY OF NAPA, CALIFORNIA - REVENUE CAPACITY INFORMATION 198
ATTACHMENT 2
Debt Capacity Information
ATTACHMENT 2
Ratios of Outstanding Debt by Type 9: Ratios of Outstanding Debt by Type Last Ten Fiscal Years
Governmental Activities
Fiscal
Year
Ended
June 30
Housing Authority
Debt Capital Debt Lease Liability1
Subscription
Liability2
Total Governmental
Activities
2016 $ - $ 1,335,322 $ - $ - $ 1,335,322
2017 - 1,219,889 - - 1,219,889
2018 1,225,210 1,103,299 - - 2,328,509
2019 1,137,375 985,540 - - 2,122,915
2020 1,045,727 866,626 - - 1,912,353
2021 949,602 746,494 - - 1,696,096
2022 848,972 625,159 11,236,565 - 12,710,696
2023 735,484 502,887 11,266,392 1,286,534 13,791,297 2024 626,804 378,836 5,691,759 3,124,157 9,821,556 2025 512,681 253,814 4,293,456 3,526,172 8,586,123 Notes:
1Lease Liability has been added as of FY22 due to the implementation of GASB 87 2Subscription Liability has been added as of FY23 due to the implementation of GASB 96
CITY OF NAPA, CALIFORNIA - DEBT CAPACITY INFORMATION
200
ATTACHMENT 2
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Business Type Activities
Fiscal
Year
Ended
June 30
Water Revenue
Bonds
Solid Waste
Revenue Bonds Lease Liability1
Subscription
Liability2
Loans & Notes
Payable
Total Business
Type Activities
2016 $ 47,989,710 $ - $ - $ - $ 1,389,321 $ 49,379,031
2017 44,060,559 12,432,687 - - 1,309,114 57,802,360 2018 44,046,408 12,436,427 - - - 56,482,835
2019 41,947,257 11,895,167 - - - 53,842,424
2020 39,753,108 11,348,906 - - - 51,102,014
2021 37,458,956 10,797,646 - - - 48,256,602
2022 35,069,807 10,236,385 - - - 45,306,191
2023 32,752,448 9,668,944 - 262,539 - 42,683,930
2024 30,336,411 9,087,487 1,090,477 385,594 - 40,899,968 2025 27,815,374 8,496,031 896,454 315,451 - 37,523,310 Notes:
1Lease Liability has been added as of FY22 due to the implementation of GASB 87 2Subscription Liability has been added as of FY23 due to the implementation of GASB 96
CITY OF NAPA, CALIFORNIA - DEBT CAPACITY INFORMATION
201
ATTACHMENT 2
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Fiscal
Year
Ended
June 30
Total Primary
Government
Percentage of
Personal Income Debt Per Capita
2016 $ 50,714,353 2.07% $ 629
2017 59,022,249 2.29% 732
2018 58,811,344 2.17% 731
2019 55,965,339 1.92% 704
2020 53,014,367 1.73% 669
2021 49,952,698 1.56% 629
2022 58,016,887 1.77% 749
2023 56,475,227 1.59% 735
2024 50,721,524 1.32% 655
2025 46,076,111 1.12% 581
CITY OF NAPA, CALIFORNIA - DEBT CAPACITY INFORMATION
202
ATTACHMENT 2
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CITY OF NAPA, CALIFORNIA - DEBT CAPACITY INFORMATION
203
ATTACHMENT 2
Direct and Overlapping Debt 10: Direct and Overlapping Debt As of June 30, 2025
City Assessed Valuation $ 17,408,270,000
Total Debt at
June 30, 2025
Percentage
Applicable1
Estimated Share of
Overlapping Debt
Direct and Overlapping Tax and Assessment Debt
Napa Joint Community College District $ 66,429,752 31.27 % $ 20,769,926 Napa Valley Unified School District 427,769,855 46.73 % 199,879,742 City of Napa Community Facilities District No. 2017-1 17,310,000 100.00 % 17,310,000 School Facilities Imprrovment District No. 1 80,000,000 58.80 % 47,040,800 School Facilities Imprrovment District No. 2 25,000,000 0.32 % 79,750 California Statewide Development Authority 1915 Act Bonds 1,448,680 100.00 % 1,448,680 Seminary Street Loan 177,092 100.00 % 177,092
Laurel Manor Rehabilitation Loan 335,587 100.00 % 335,587 Total Direct and Overlapping Tax and Assessment Debt 287,041,577 Direct and Overlapping General Fund Obligation Debt
City of Napa Capital Lease $ 253,816 100.00 % $ 253,816 Napa County Board of Education Certificates of Participation 10,885,000 31.53 % 3,432,149 Napa Valley Unified School District General Fund Obligations 1,440,000 46.73 % 672,854 Total Overlapping General Fund Obligation Debt 4,358,819 Total Direct Debt 766,495
Total Overlapping Debt 290,633,901
Total Direct and Overlapping Debt 2 $ 291,400,396
Source: California Municipal Statistics, Inc
Note:
1 Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that if within the boundaries of the city divided by the district's total taxable assessed value. 2 Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non-bonded lease obligations.
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ATTACHMENT 2
Legal Debt Margin 11: Legal Debt Margin
Last Ten Fiscal Years
(in thousands)
Fiscal Year
2025 2024 2023 2022 2021
Assessed valuation $ 17,408,270 $ 16,792,113 $ 15,603,505 $ 14,528,006 $ 13,943,261 Conversion percentage 25 % 25 % 25 % 25 % 25 %
Adjusted assessed valuation 4,352,068 4,198,028 3,900,876 3,632,002 3,485,815 Debt limit percentage 15 % 15 % 15 % 15 % 15 %
Debt limit 652,810 629,704 585,131 544,800 522,872 Legal debt margin $ 652,810 $ 629,704 $ 585,131 $ 544,800 $ 522,872 Total debt applicable to the limit
as percentage of debt limit 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Source: Napa County Assessment Roll - Cities
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ATTACHMENT 2
Legal Debt Margin (Continued)
Last Ten Fiscal Years
(in thousands)
Fiscal Year
2020 2019 2018 2017 2016
Assessed valuation $ 13,301,265 $ 12,450,453 $ 11,775,669 $ 11,078,940 $ 10,406,262 Conversion percentage 25 % 25 % 25 % 25 % 25 %
Adjusted assessed valuation 3,325,316 3,112,613 2,943,917 2,769,735 2,601,566 Debt limit percentage 15 % 15 % 15 % 15 % 15 %
Debt limit 498,797 466,892 441,588 415,460 390,235 Legal debt margin $ 498,797 $ 466,892 $ 441,588 $ 415,460 $ 390,235 Total debt applicable to the limit
as percentage of debt limit 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Source: Napa County Assessment Roll - Cities
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ATTACHMENT 2
Pledged Revenue Coverage 12: Pledged Revenue Coverage
Last Ten Fiscal Years
Water
Debt Service
Fiscal Year
Ended June
30 Gross Water
Revenues Less Expenses
Net Available
Revenues Principal Interest Notes Payable
City System
Coverage
2016 $ 30,174,654 $ 25,132,975 $ 5,041,679 $ - $ 419,545 $ 391,537 6.22 2017 28,051,071 24,095,608 3,955,463 1,680,000 1,736,050 391,537 1.04 2018 30,686,645 25,535,076 5,151,569 1,765,000 1,637,342 - 1.51 2019 37,725,405 26,718,269 11,007,136 1,850,000 1,568,380 - 3.22 2020 45,930,824 26,718,269 19,212,555 1,945,000 1,455,092 - 5.65 2021 43,920,412 34,643,772 9,276,640 2,045,000 1,357,008 - 2.73 2022 38,733,045 24,444,292 14,288,753 2,140,000 1,253,967 - 4.21 2023 37,153,597 33,936,885 3,216,712 2,160,000 1,164,800 - 0.97 2024 45,696,018 33,645,926 12,050,092 2,180,000 1,056,800 - 3.72 2025 53,653,569 31,108,595 22,544,974 2,285,000 947,800 - 6.97 Solid Waste Revenue Bonds
Debt Service
Fiscal Year
Ended June
30 Gross Solid
Waste
Revenues Less Expenses
Net Available
Revenues Principal Interest Notes Payable
City System
Coverage
2016 $ 26,536,033 $ 21,425,404 $ 5,110,629 $ - $ - $ - - 2017 27,070,203 22,789,573 4,280,630 - 91,520 - 46.77 2018 28,624,734 26,758,912 1,865,822 - 567,544 - 3.29 2019 30,935,739 29,848,450 1,087,289 545,000 323,239 - 1.25 2020 34,669,468 35,853,679 (1,184,211) 550,000 314,169 - (1.37) 2021 39,300,430 33,354,538 5,945,892 555,000 306,237 - 6.90 2022 43,295,704 32,749,610 10,546,094 565,000 297,124 - 12.23 2023 45,202,288 45,879,648 2,160,000 (677,360) 570,000 291,028 - (0.79) 2024 44,213,648 41,863,707 2,160,000 2,349,941 585,000 279,643 - 2.72 2025 49,661,606 42,343,847 7,317,759 595,000 267,044 - 8.49 Note:
For FY2024, the amounts reported in the Water Fund for the revenue and expenses categories were updated.
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ATTACHMENT 2
Demographic and Economic Information
ATTACHMENT 2
Demographic and Economic Statistics 13: Demographic and Economic Statistics Last Ten Years
Year
Population
(1)
Personal Income
(in thousands)
(2)
Per Capita
Income
School
Enrollment
(3)
Unemployment
Rate
(4)
2016 80,576 2,448,373 30,385 20,817 4.1 %
2017 80,628 2,572,773 31,909 20,562 4.0 %
2018 80,403 2,710,863 33,715 18,093 3.2 %
2019 79,490 2,914,797 36,668 17,849 2.3 %
2020 79,278 3,061,788 38,620 17,666 12.6 %
2021 79,397 3,195,711 40,249 17,240 6.1 %
2022 77,480 3,274,857 42,267 19,012 2.7 %
2023 76,821 3,556,309 46,293 16,441 3.6 %
2024 77,492 3,848,944 49,873 16,393 4.3 %
2025 79,246 4,127,515 53,096 16,381 4.2 %
(1) Population projections are provided by United States Census Bureau (2) From FY 2015-2023, personal income is derived from HdL Coren & Con; for FY2025, the data is derived from EDD's Bureau of Labor Statistics Department.
(3) School Enrollment is provided by the CA Department of Education; student enrollment reflects the total number of students enrolled in the Napa Valley Unified School District; other school district within the City are not accounted for in this statistic. (4) Unemployment Rate is provided by the EDD's Bureau of Labor Statistics Department.
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ATTACHMENT 2
Principal Employers 14: Principal Employers
Last Year and Nine Years Ago
2025 2016
Employer Name1
Number of
Employees1 Rank
Percentage of
Total City
Employment
Number of
Employees Rank
Percentage of
Total City
Employment
Napa Valley Unified School District 1,716 1 3.67% 1,900 1 4.50% County of Napa 1,480 2 3.17% 1,248 3 2.96%
Queen of the Valley Hospital 1,245 3 2.67% 1,365 2 3.23% Napa Valley College 825 4 1.77% 290 6 0.69%
City of Napa 667 5 1.43% 458 1.09%
St Joseph Health 354 6 0.76% - 0.00%
Walmart Supercenter 300 7 0.64% 250 0.59%
Newton Vineyard LLC 200 8 0.43% - 0.00%
Artisan Bakers 194 9 0.42% - 0.00%
Meadows of Napa Valley 193 10 0.41% 214 0.51%
Target - 0.00% 292 5 0.69%
Kohl's Department Store - 0.00% 200 9 0.47%
Meritage Resort and Spa - 0.00% 190 10 0.45%
Total Top 10 Employers 7,174 11.69% 6,407 10.68%
Total City Labor Force2 46,700 42,200
Source:
1 Workforce Alliance of the North Bay
2 Labor Force data is provided by the EDD's Bureau of Labor Statistics Department.
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ATTACHMENT 2
Full Time Equivalent City Government Employees by Function/Program 15: Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
Fiscal Year
Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Governmental Activities
General government 83 65 63 60 62 63 59 59 57 57
Public safety
Police 131 131 129 129 131 132 139 138 132 132
Fire 77 74 74 74 74 74 76 74 70 69
Public works 85 86 85 83 83 83 86 79 77 73
Parks and recreation 40 40 41 43 39 39 62 70 65 64
Community development and
housing 29 47 44 44 41 41 40 38 38 38
Business type Activities
Water utility 69 69 66 66 68 68 67 63 61 60
Solid waste and recycling 8 8 8 7 7 7 8 8 7 7
TOTAL 522 520 510 506 505 506 537 530 508 501
Source: City of Napa's Adopted Budget Book - Appendix A
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ATTACHMENT 2
Operating Information
ATTACHMENT 2
Operating Indicators by Function/Program 16: Operating Indicators by Function/Program Last Ten Fiscal Years
Fiscal Year
Function/Program 2025 2024 2023 2022 2021
Police
Physical arrests 1,831 1,867 2,087 2,009 1,724
Parking violations 7,479 7,959 6,398 5,570 4,377
Traffic violations 6,041 6,478 4,040 2,089 503
Fire
Number of calls answered 11,778 11,448 11,098 10,199 9,702 Inspections 2,604 2,908 2,817 1,710 1,211
Highways and streets
Street resurfacing (miles) 32 15 5 6 4
Potholes repairs 4,477 1,200 1,500 1,327 972
Solid Waste and Recycling
Refuse collected (tons/day) 93 91 91 - 93
Recyclables collected (tons/day) 61 67 65 - 77
Green Waste collected (tons/day) 79 77 74 - 65
Culture and recreation
Athletic field permits issued 15 31 12 11 11
Water
New connections 86 62 36 35 23
Water Main breaks 1 55 61 66 53 59
Average daily consumption
(per thousand gallons) 12 12 11 11 13
Source: City of Napa
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ATTACHMENT 2
Operating Indicators by Function/Program (Continued)
Last Ten Fiscal Years
Fiscal Year
Function/Program 2020 2019 2018 2017 2016
Police
Physical arrests 2,305 2,414 2,943 2,933 3,803
Parking violations 4,787 5,970 5,184 5,367 2,953
Traffic violations 3,156 2,933 3,095 5,152 4,835
Fire
Number of calls answered 10,347 9,987 9,894 8,996 8,969 Inspections 1,650 2,045 1,275 1,689 1,598
Highways and streets
Street resurfacing (miles) 9 4 5 10 10
Potholes repairs 1,903 2,348 363 467 320
Solid Waste and Recycling
Refuse collected (tons/day) 89 94 93 95 93
Recyclables collected (tons/day) 69 78 71 71 76
Green Waste collected (tons/day) 75 71 72 74 75
Culture and recreation
Athletic field permits issued 9 12 15 12 8
Water
New connections 55 49 115 62 62
Water Main breaks 1 51 51 40 57 68
Average daily consumption
(per thousand gallons) 13 12 12 11 11
Source: City of Napa
1 233 of the 272 water main breaks in 2015 were related to the August 24, 2014 South Napa Earthquake
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ATTACHMENT 2
Capital Asset Statistics by Function 17: Capital Asset Statistics by Function Last Ten Fiscal Years
Fiscal Year
Function/Program 2025 2024 2023 2022 2021
Police
Police Stations 1 1 1 1 1
Police Vehicles 70 54 54 46 47
Police Motorcycles 4 4 4 4 4
Fire
Fire stations 5 5 5 5 5
Fire Apparatus 13 15 11 11 11
Highways and Streets
Streets (miles)1 223 248 222 244 243
Parks & Recreation
Parks 54 54 54 62 55
Parks (acreage) 955 955 955 940 814
Tennis Courts 2 2 2 2 2
Community Centers 2 2 2 2 3
Wastewater
Storm Drain (miles) 346 346 346 346 346
Water
Reservoirs 2 2 2 2 2
Materials Diversion Utility
Facility 1 1 1 1 1
Golf Course:
Napa Golf Course 1 1 1 1 1
Source: City of Napa
Note: 1 Street (centerline) miles within the City jurisdiction, excludes private-owned.
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ATTACHMENT 2
Capital Asset Statistics by Function (Continued)
Last Ten Fiscal Years
Fiscal Year
Function/Program 2020 2019 2018 2017 2016
Police
Police Stations 1 1 1 1 1
Police Vehicles 45 42 39 37 46
Police Motorcycles 4 4 4 4 4
Fire
Fire stations 5 5 5 4 4
Fire Apparatus 11 11 11 11 9
Highways and Streets
Streets (miles)1 243 243 240 239 237
Parks & Recreation
Parks 55 55 55 55 54
Parks (acreage) 816 816 816 815 814
Tennis Courts 2 2 2 2 2
Community Centers 3 3 3 3 3
Wastewater
Storm Drain (miles) 346 346 153 152 152
Water
Reservoirs 2 2 2 2 2
Materials Diversion Utility
Facility 1 1 1 1 1
`
Golf Course:
Napa Golf Course 1 1 1 1 1
Source: City of Napa
Note: 1 Street (centerline) miles within the City jurisdiction, excludes private-owned.
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ATTACHMENT 2
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ATTACHMENT 2
ATTACHMENT 2