End of Year and
Annual
Comprehensive
Financial Report
(ACFR)
FY 2024/25
ATTACHMENT 4
PURPOSE
• Update Council & Community on the Financial
Status
of the City as of June 30, 2025
• Present to Council and the Community on the
City
’s Annual Comprehensive Financial Report
(ACFR) as of Fiscal Year Ended June 30, 2025
• Council to accept and file the ACFR for Fiscal
Year E
nded June 30, 2025
• Council to provide direction to staff to return to
a futur
e meeting regarding the allocation of the
available General Fund unassigned fund
balance
2 ATTACHMENT 4
AUDITORS’ OPINION
• The City’s financial audit for fiscal year ended
June 30, 2025
was completed by independent
certified public accounting firm Lance, Soll and
Lunghard (LSL), LLP
• Second year of the agreement
• Auditors’ Opinion: Unmodified (clean)
3 ATTACHMENT 4
GFOA AWARD
Certificate of Achievement for Excellence in
Financial Reporting:
• Received the award for 11th consecut ive year
• Submitted for FYE 2024/25
4 ATTACHMENT 4
OVERVIEW OF FY 2024/25
• General Fund number s shown include Measure
G Sales Tax revenue and expenditures
• Overall City revenues hi gher than originally
projected
• Non-Measure G General Fun d revenues end the year $3.7 million overbudget
• Measure G General F und revenues end the year $0.6
overbudget
• General Fund expendit ures were under budget
• Non-Measure G General Fu nd expenditures end the year $3.7 million under budget after reserve contributions
• Measure G General Fund ex penditures end year $5.0
million under budget, however, are reserved for capital projects
5 ATTACHMENT 4
ECONOMIC OUTLOOK
• Sales Tax
• Projected lower gro wth rate for Sales Tax than budgeted in future years provided by consultant
• Transient Occupanc y Tax (TOT)
• Grew strongly in 4 th Quarter of FY 2024/25 which was projected to remain flat to prior fiscal year amounts
• Property Tax
• Came in at the proj ected budgeted amount in FY 2024/25 in line with future budgeted year growth rates
• Economic Uncert ainty
• Potential loss of Vehic le License Fees (VLF)
• Reduction of federal and s tate funding levels
6 ATTACHMENT 4
FY 2024/25 AUDITED
FINANCIAL STATUS REPORT
7 ATTACHMENT 4
GENERAL FUND
8 ATTACHMENT 4
General Fund Revenue
FY 2024/25
(in thousands)
9 Budget Actual YTD %
Taxes:
Property Tax 47,234$ 47,240$ 100%
Excess ERAF 3,000 3,000 100%
Sales T
ax 23,285 22,787 98%
Sales Tax - Measure G 5,140 5,696 111% Transient Occupancy Tax 29,453 30,913 105% Business License Tax 5,982 5,372 90% Other Taxes 2,692 2,644 98%
License and Permits 3,841 3,963 103% Charges for Services 7,716 7,969 103% Investment Earnings 2,800 4,763 170% Intergovernmental 1,912 1,556 81% Misc revenue (adjusted for GASB 87 and 96) 306 1,789 585% Transfer In 5,095 5,095 100%
Total Operating Revenue 138,454$ 142,787$ 103% ATTACHMENT 4
General Fund Revenue
FY 2024/25
Excluding Period 13
(in thousands)
10 Budget Actual YTD %
Tax
es:
Property Tax 47,234$ 47,240$ 100%
Excess ERAF 3,000 3,000 100%
Sales Tax 23,285 22,787 98%
Sales Tax - Measure G 5,140 5,696 111% Transient Occupancy Tax 29,453 30,913 105% Business License Tax 5,982 5,372 90%
Other Taxes 2,692 2,644 98%
License and Permits 3,841 3,963 103%
Charges for Services 7,716 7,945 103% Investment Earnings 2,800 3,638 130%
Intergovernmental 1,912 1,556 81%
Misc Revenue 306 274 89%
Transfer In 5,095 5,095 100%
Total Operating Revenue 138,454$ 140,122$ 101%
ATTACHMENT 4
General Fund Expenditures
FY 2024/25
(in thousands)
11 Budget Actual YTD %
Salaries, Wages, and Benefits 93,518$ 92,038$ 98.42% Materials, Supplies, Services, Misc 35,963 30,627 85.16% Debt Service 219 1,743 795.10% Capital Outlay (adjusted for GASB 96) 6 1,572 28585.01% Transfer Out 7,714 7,714 100.00% Transfer Out - Measure G 5,000 - 0.00% Transfer Out - Operating Reserves 2,129 - 0.00% Total Operating Revenue 144,549$ 133,693$ 92.49% ATTACHMENT 4
General Fund Expenditures
FY 2024/25
Excluding Period 13
(in thousands)
12 Budget Actual YTD %
Sal
aries, Wages, and Benefits 93,518$ 92,063$ 98% Materials, Supplies, Services, Misc 35,963 32,079 89% Debt Service 219 219 100% Capital Outlay 6 0 0% Transfer Out 7,714 7,714 100% Transfer Out - Measure G 5,000 - 0% Transfer Out - Operating Reserves 2,129 - 0% 144,549$ 132,075$ 91%
ATTACHMENT 4
General Fund Reserves
FY 2024/25
• Operating Reserve: $6.49 million
– Target: 5% of operating expenditures
• Emergency Reserve: $18.16 million
– Target: 14% of operating expenditures
• Contingency Reserve: $1.30 million
– Target: 1% of operating expenditures
13 ATTACHMENT 4
CASH AND INVESTMENTS
14 ATTACHMENT 4
ALL FUNDS
FY 2024/25
15 Fund
City of Napa
as of 6/30/25
Fiduciary
Funds
as of 6/30/25
Grand Total
as of 6/30/25
General Fund $21,808,895 $21,808,895
General Non-Recurring $8,909,361 $8,909,361
Measure G $1,305,849 $1,305,849
American Rescue Plan Act $1,315,821 $1,315,821
Special Revenue Funds $112,132,052 $112,132,052
CIP Funds $38,922,522 $38,922,522
Enterprise Funds $98,590,454 $98,590,454
Fiduciary Funds $2,362,475 $2,362,475
Housing Funds $9,907,140 $9,907,140
Internal Service Funds $58,892,881 $58,892,881
Payroll Clearing Account $1,000,767 $1,000,767
TOTAL CITY CASH &
INVESTED FUNDS $352,785,742 $ 2,362,475 $355,148,217 ATTACHMENT 4
AMERICAN RESCUE PLAN ACT
(ARPA) FUNDS
16 ATTACHMENT 4
ARPA Funds
17 Total
Received
Total
Obligations
Total
Expenditures Unexpended
$15,118,910 $15,118,910 $13,666,911 $1,451,999
ATTACHMENT 4
CIP PROJECT FUND
18 ATTACHMENT 4
CIP Reserves
FY 2024-25
• CIP Facilities Reserve
– $8.1 million ending balance for current and
future pr
ojects
• CIP General Reserve
– $3.3 million ending balance for current and
future pr
ojects
19 ATTACHMENT 4
PENSION & POST-
EMPLOYMENT BENEFITS FUND
20 ATTACHMENT 4
Section 115 Trust
• Created to help mitigate increases in future
pension cos
ts
• Balance at 6/30/25: $10.1 million
• Peak UAL Payment in FY 30/31 - $24.3 mil lion
21 -
5 10
15 20
25 30
CalPERS UAL Projection
All City Funds
264 - Miscellaneous Plan 265 - Safety Plan
ATTACHMENT 4
PENSION AND OTHER POST
EMPLOYMENT BENEFITS
(OPEB) LIABILITIES
22 ATTACHMENT 4
Pension
FY 2024-25
23 Net Pension Liability Governmental Business-Type Total CalPERS Misc. $92,378,001 $23,929,484 $116,307,485
Ca
lPERS Safety $109,338,152 $109,338,152
Total $ 201,716,153 $ 23,929,484 $ 225,645,637 ATTACHMENT 4
ENTERPRISE FUNDS
24 ATTACHMENT 4
Solid Waste and Recycling Operating
FY 2024-25
Excluding Period 13
(in thousands)
25 Budget Actual YTD %
Charges for Services 47,392$ 48,426$ 102% Intergov
ernmental 32 11 35% Investment Earnings 125 830 664% Financing Revenues - - 0% Misc Revenues 59 59 100% Transfers In - - 0% Total Revenues 47,608$ 49,326$
Salaries, Wages & Benefits 1,822$ 1,734$ 95% Materials, Supplies, and Serv 42,540 39,525 93% Debt Service 872 865 99% Capit
al Outlay 164 (0) 0% Transfers Out 4,426 4,931 111% Total Expenses 49,824$ 47,055$ 94%
ATTACHMENT 4
Water Utility Operating
FY2024-25
Excluding Period 13
(in thousands)
26 Budget Actual YTD %
Charges for
Services 42,985$
48,094$
112%
Intergovernmental 200 200 100%
Investment Earnings 572 4,051 708%
Financing Revenues 96 - 0%
Misc Revenues 162 138 85%
Total Revenues 44,015$ 52,483$
Salaries, Wages & Benefits 13,480$
11,242$
83%
Materials, Supplies, and Services 19,733 17,386 88%
Debt Service 3,332 3,238 97%
Capital Outlay 290 145 50%
Transfers Out 7,537 18,124 240%
Total Expenses 44,372$ 50,135$ 113% ATTACHMENT 4
Water CIP Fund
FY2024-25
Excluding Period 13
(in thousands)
27 Budget Actual YTD %
Charges for Services 1,700$ 470$ 28% Intergovernmental 6,017 60 1% Investment Earnings - (446) 0% Misc Revenues 360 - 0% Transfers In 4,300 14,887 346% Total Revenues 12,377$ 14,971$
Salaries, Wages & Benefits -$ 308$ 0% Materials, Supplies, and Services 39 80 207% Capital Outlay 52,563 17,103 33% Transfers Out 34 4,898 14367% Total Expenses 52,635$ 22,388$ 43% ATTACHMENT 4
OPERATING POSITION:
GENERAL FUND
&
NON-RECURRING GENERAL FUND
28 ATTACHMENT 4
General Fund
Operating Position
FY 2024/25
29 FY FY
2024/25 2024/25
Budget Actual
General Fund ($ in millions)
Total Revenues 138.5 142.8
- Operating Expenditures (144.6) (133.7)
- Contributions to General Fund Reserves (2.1) (2.1)
Operating Surplus / Deficit (6.1) 7.0
+ Fund Balance 7.0 6.4
- Fund Balance - Measure G (0.7)
- Fund Balance for Carryforwards (1.8)
- Fund Balance for Harvest Middle School Project (2.0)
Available Fund Balance 0.9 8.9
ATTACHMENT 4
Measure G
Operating Position
FY 2024/25
30 FY FY
2024/25 2024/25
Budget Actual
Measure G General Fund ($ in millions)
Total Revenues 5.1 5.7
- Operating Expenditures (5.0) -
- Committed for CIP (5.0)
Operating Surplus / Deficit 0.1 0.7
+ Fund Balance Appropriation - -
- Encumbrances -
Available Fund Balance 0.1 0.7
ATTACHMENT 4
NR General Fund
Operating Position
FY 2024/25
31 FY FY
2024/25 2024/25
Budget Actual
Non-Recurring General Fund ($ in millions)
Beginning Fund Balance 8.7 8.7
+ Revenues 8.0 7.9
- Expenditures (12.0) (6.2)
Ending Fund Balance 4.7 10.4
ATTACHMENT 4
Recommendations
• Harvest Recreational Site
– $5.0 million for demolition & preliminary
project
planning
• PERS UAL Mitigation
– $3.5 million to Section 115 Trust
• Reserves
– $0.4 million true up for current revised budget
32 ATTACHMENT 4
Questions and Comments
33 ATTACHMENT 4
Recommendation to Council
• Accept and file the Annual
Comprehensive F
inancial Report (ACFR)
f
or the Fiscal Year Ended June 30, 2025
• Provide direction to staff to return to a
f
uture Counci
l meeting regarding the
al
location of the available General Fund
unassi
gned fund balance
34 ATTACHMENT 4