Annual Comprehensive Financial Report fiscal year ended June 30, 2023 — Yountville City Council, December 5, 2023

Town of Yountville
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2023
"'The ¾eatt of the J.f apa o/a({ey"

ABOUT THE COVER
In the heart of Napa Valley sits Yountville, a renowned one of a kind town, with incredible natural surroundings, breathtaking views, wineries, fine cuisine, and most importantly a community that makes strolling around town inviting. The neighbors, workers, and businesses of Yountville have created a magical atmosphere that charms locals and visitors alike. Thanks to our community, Yountville is a beautiful place that our residents are proud to call home.

Town of Yountville
California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2023
Prepared by the Finance Department
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TOWN OF YOUNTVILLE

COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2023

TABLE OF CONTENTS

INTRODUCTORY SECTION
Transmittal Letter ..................................................................................................................... 1 Principal Officials .................................................................................................................... 9 Organizational Chart............................................................................................................... 10 GFOA Certificate ................................................................................................................... 11

FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................. 15 Management’s Discussion and Analysis (Required Supplementary Information) ...................... 21 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position............................................................................................. 37 Statement of Activities................................................................................................. 38 Fund Financial Statements
Governmental Funds:

Balance Sheet ......................................................................................................... 40 Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Financial Statement of Net Position............................. 41 Statement of Revenues, Expenditures and Changes in Fund Balances ...................... 42 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................................................................... 43 Proprietary Funds:

Statement of Net Position ....................................................................................... 46 Statement of Revenues, Expenses, and Changes in Fund Net Position ...................... 47 Statement of Cash Flows......................................................................................... 48 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ........................................................................ 50 Statement of Changes in Fiduciary Net Position ...................................................... 51

Notes to the Basic Financial Statements .................................................................................. 54

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis):

General Fund ............................................................................................................... 91 Measure T Fund ........................................................................................................... 92 Schedule of Pension Contributions.......................................................................................... 93 Schedule of Proportionate Share of Net Pension Liability ........................................................ 94 Schedule of OPEB Contributions ............................................................................................ 95 Schedule of Changes in Net OPEB Liability ............................................................................ 96 Schedule of PARS OPEB Trust Investment Returns................................................................. 97

TOWN OF YOUNTVILLE

COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2023

TABLE OF CONTENTS

SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis):

Capital Projects Fund ................................................................................................. 101 Debt Service Fund...................................................................................................... 102 Nonmajor Governmental Funds:

Combining Balance Sheet ................................................................................................ 105 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............. 109 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis):

Gas Tax Special Revenue Fund.................................................................................... 113 Public Education and Government Television Special Revenue Fund ................................. 114 Public Art Program Special Revenue Fund ..................................................................... 115 Housing Grant Program Special Revenue Fund .............................................................. 116 SB1 2017 Road Repair Act Special Revenue Fund .......................................................... 117 Measure T Equivalent Special Revenue Fund ................................................................. 118 Fire Services Impact Fee Special Revenue Fund ............................................................. 119 Disability Access Fee SB1186 Special Revenue Fund...................................................... 120 Utility Underground Impact Fee Fund ........................................................................................ 121 Housing Opportunity Special Revenue Fund .................................................................. 122 Measure S Special Revenue Fund................................................................................. 123 Upper Valley Disposal Service Franchise Fees Special Revenue Fund ...................... 124 Town of Yountville Community Foundation Special Revenue Fund ................................... 125 Tallent Lane Special Revenue Fund .............................................................................. 126 Mesa Court Drainage Special Revenue Fund .................................................................. 127 Measure A Maintenance Capital Project Fund ................................................................ 128 Facility Repair and Replacement Capital Project Fund..................................................... 129 Fleet, Tools, and Equipment Repair and Replacement Capital Project Fund ........................ 130 Comparative Statement of Water Enterprise Fund Net Position .............................................. 131 Comparative Statement Water Enterprise Fund Revenues, Expenses and Changes in Net Position .................................................................................................. 132 Comparative Statement of Wastewater Enterprise Fund Net Position ..................................... 133 Comparative Statement of Wastewater Enterprise Fund Revenues, Expenses and Changes in Net Position ............................................................................................ 134

STATISTICAL SECTION
Net Position by Component................................................................................................... 139 Changes in Net Position ........................................................................................................ 140 Fund Balances of Governmental Funds.................................................................................. 142 Changes in Fund Balances of Governmental Funds................................................................ 143 Transient Occupancy Tax Revenue Base Statistics........................................................................ 144

TOWN OF YOUNTVILLE

COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2023

TABLE OF CONTENTS
Transient Occupancy Tax – Principal Payers and Other Information ................................................ 145 Principal Transient Occupancy Taxpayers................................................................................... 146 Ratios of Outstanding Debt by Type...................................................................................... 147 Computation of Direct and Overlapping Debt ........................................................................ 148 Legal Debt Margin Information............................................................................................. 149 Pledged Revenue Coverage ................................................................................................... 150 Lease Revenue Bonds Continuing Disclosures ............................................................................. 151 Demographic and Economic Statistics................................................................................... 152 Principal Employers.............................................................................................................. 153 Number of Positions – City Government by Function .................................................................... 154 Operating Indicators by Function .......................................................................................... 155 Capital Asset Statistics by Function ...................................................................................... 156 OTHER INDEPENDENT AUDITOR’S REPORTS
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards........................................................ 158 This page is intentionally blank
Introductory Section
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TRANSMITTAL LETTER
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October 24, 2023
Honorable Mayor, Members of the Town Council, and Citizens of the Town of Yountville SUBJECT: Annual Comprehensive Financial Report – June 30, 2023 Town staff is pleased to present the Annual Comprehensive Financial Report (ACFR) for the Town of Yountville for the fiscal year ended June 30, 2023.

REPORT PURPOSE AND ORGANIZATION
State law requires that the accounts and fiscal affairs of all municipal entities be examined annually by an independent certified public accountant. The Town’s independent auditor, Chavan and Associates, LLP has audited the Town’s financial statements and issued an unmodified opinion that the financial statements for the year ended June 30, 2023, are fairly presented in conformity with Generally Accepted Accounting Principles (GAAP). This opinion, along with the basic financial statements, are hereby submitted as the ACFR for the Town of Yountville for the fiscal year ended June 30, 2023. The information included in the financial section of this report fulfills the above requirement.

The independent audit of the financial statements is also typically conducted in conjunction with the federally mandated Single Audit. The standards governing the Single Audit require the independent auditor to report on items beyond fair presentation of the financial statements, including internal controls and compliance with legal requirements involving the administration of federal awards. A single audit was not required or prepared for Fiscal Year 2022/2023 because the Town had less than $750,000 in federal grant expenditures.

The ACFR includes a complete set of audited financial statements and notes, together with supplemental and statistical information. The Town issues the ACFR within approximately six months after the close of each fiscal year to fully disclose its financial information in a timely and transparent manner and to maintain compliance with all state and federal regulations and bond covenants. Management assumes full responsibility for completeness, accuracy of data, and fairness of presentation, including all footnotes and disclosures. Management believes the data presented are accurate in all material respects and that they are presented in a manner designed to fairly set forth the financial position and results of operations of the Town. To provide a reasonable basis for making these representations, Town management has established a comprehensive framework of internal controls designed both to protect the Town’s assets from loss, theft, or misuse; and to compile sufficiently reliable information for the preparation of the Town’s financial statements in conformity with generally accepted accounting principles. Because the cost of internal controls should not exceed their benefits, the Town’s internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements are free of material misstatements.

Generally accepted accounting principles 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. The Town’s MD&A can be found in the Financial Section of this document, immediately following the report of the independent auditor.

TOWN OF YOUNTVILLE PROFILE
The Town is located in the heart of Napa Valley surrounded by the beautiful backdrop of the region’s vineyards and mountains. Yountville has small town charm and unique character, making it an ideal place to live, work or visit. With a population of approximately 2,778, we are a community that cares about its citizens and businesses. We also welcome our many visitors who come from the Bay Area, and around the world, to enjoy the numerous activities and events in the area, dine at our critically acclaimed restaurants and stay at one of the fine lodging establishments the Town has to offer.

Form of Government
The Town of Yountville was incorporated February 4, 1965 and operates under a council-manager form of government. Policymaking and legislative authority are vested in the Town Council consisting of the Mayor and four other elected Council members. The Council is responsible for, among other matters, approving and modifying ordinances, adopting the Town budget, appointing committee, and commission members, and hiring the Town Manager and Town Attorney. The Town Manager is responsible for ensuring compliance with the ordinances, implementing the policies and direction of the Town Council, appointing department heads, hiring employees, and managing daily operations of the Town.

The Council is elected on a non-partisan basis. Council members serve four-year staggered terms, with two members elected every two years. The Mayor is elected to serve a four-year term.

Town Services
The Town provides a full range of municipal services including fire/emergency services and law enforcement through contracts with Napa County; construction and maintenance of Town streets, storm drains, bridges, and similar infrastructure type assets; park maintenance; community recreation activities including seasonal camps and other recreation and leisure programs. The Town operates a modern community center facility that hosts community and recreation programs, in addition to being available for rent to groups and functions of all sizes, from small meetings and gatherings to large events and elegant wedding receptions and banquets.

In terms of business-type activities, the Town provides water and wastewater services through the operation of its utility enterprises. The Town has a partnership with the State of California, whereby the State agrees to supply water to the Town, and the Town, in turn, provides wastewater treatment for the California Veterans Home. The costs to provide these utility services, including the cost to purchase water, compliance with increasing state regulations, and maintaining the utility infrastructure have steadily increased over the last several years. Upon review of a comprehensive rate study and business plan, the Town Council conducted a public hearing and approved a five-year water/wastewater rate schedule in November 2022. The rate schedule was established to phase in the rate increases necessary to eliminate the utility enterprise operating deficits and provide funds needed for systems replacements. The fiscal year ending June 30, 2023 included revenue from rates that became effective January 1, 2023.

The ACFR includes all financial activities of the Town. Financial data for all funds through which services are provided by the Town have been included in this report based on the criteria adopted by the Governmental Accounting Standards Board (GASB), which is the authoritative body establishing U.S. Generally Accepted Accounting Principles (GAAP) for local governments.

Budgetary Policy and Control
The Town’s budgetary records are maintained on a modified accrual basis. Revenues are recorded when measurable and available; and expenditures are recorded when goods or services are received, and the liability incurred. The Town produces an annual budget, which serves as the foundation for the Town of Yountville’s financial planning and control. Based on the Town of Yountville Financial Policies, the Town is required to maintain a balanced operating budget; requiring current year operating expenses and transfers for debt service and capital expenditures to be fully funded by current year revenues and other designated available funding sources. In the budget development process, the Town Council and staff referenced the following strategic plan goals as a basis for budget development:
 Exceptional Town Services: The Town supports its talented staff who deliver high quality municipal programs and services while maintaining public infrastructure for the benefit of the community.  Engage Residents: The Town embraces our residents’ commitment to community as seen through volunteerism, civic engagement, and public participation that enhances the quality of life in Yountville.
 Responsible Fiscal Policy: The Town maintains its fiscal health through policies designed to maximize economic opportunities, manage expenses, and ensure prudent reserves.  Quality of Life: The Town enhances the livability of Yountville by providing well-maintained public facilities, parks and trails, and quality programs and events.  Premier Destination: The Town values its residents, rich history, natural environment, culinary excellence, arts, and distinguished businesses that make our home a place people love.  Visionary Leadership: The Town’s leadership maintains an open-minded, forward-thinking decisionmaking process. We value engagement and participation from all members of the community as we work together to create policies and plan for the future.

All departments of the Town submit requests for appropriations to the Town Manager each year; these requests serve as a starting point for developing a proposed budget. The Town Manager presents a proposed operating and capital budget to the Town Council each year. The Council holds public hearings, generally starting in May, to review and receive input on the proposed budget before formal adoption. The budget is adopted by fund, department, and account classification. During the year, the Town Manager may authorize budget transfers within departments and funds, but only the Town Council can approve additional appropriations. Staff provide monthly financial reports to the Council during the year and may prepare a comprehensive budget review at mid-year. The council approves adjustments to the original budget during the year to reflect changing conditions that impact revenues or expenditures.

Budget to actual comparisons are provided in this report for each governmental fund for which an appropriated annual budget has been adopted. The general fund budget to actual comparison is required supplementary information and is presented in a separate section of this report immediately following the notes to the financial statements. For the Town’s other governmental-type funds a budget to actual comparison schedule is presented as optional information in the section of this report containing combining financial statements and individual fund schedules.

FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is better understood when it is considered from the broader perspective of the environment in which the Town operates.

Local Economy
The Town is located sixty miles north of San Francisco in the Napa Valley, an area that attracts many visitors each year as they come to enjoy the scenic beauty, the local attractions and the many wineries and restaurants in the area. The Town of Yountville is a destination for tourists seeking a welcoming small-town environment while visiting the Napa Valley. The Town has been recognized in many well-known publications and continues to attract visitors from nearby urban areas, as well as other regions and countries. As a tourist destination, 70% of the Town’s general fund revenues for Fiscal Year 2022/2023 are from transient occupancy tax (TOT), restaurant and tasting room sales tax collections.

Given the reliance on tourism-based revenue, the Town has taken steps to ensure continued promotion as a tourist destination. The Town contracts with the Yountville Chamber of Commerce for promotional marketing and events. The Town is an active member of the Napa Valley Tourism Improvement District which assesses an additional 2% on all hotel room rents, of which 25% (one fourth) is managed by a Yountville Tourism Improvement Board to promote Yountville, sponsor events, and generate business during the slow months of the tourist season.

The Town has positioned itself to maintain a healthy and vibrant local economy with highly rated hotels and inns, award winning restaurants, wine tasting, boutique retail shops and a community art program all situated in a beautiful location that attracts many visitors. Yountville is also home to the Veterans Home of California, a historic community of and for veterans, dating back to the 1880’s.

The three major sources of General Fund revenue include Transient Occupancy Tax (TOT), Property Tax, and Sales Tax. An overview of these three taxes, which account for 88% of the Fiscal Year 2022/2023 General Fund revenues, is provided in the subsequent sections.

Transient Occupancy Tax
Transient Occupancy Tax is the Town’s largest source of revenue, representing 59% of all General Fund revenues. In Fiscal Year 2022/2023, the Town’s TOT revenues were $8.7 million. This is substantially less than the prior fiscal year when the Town experienced an unprecedented amount of TOT collections, but also more than pre-pandemic Fiscal Year 2018/2019.

Property Tax Revenues
This revenue source is stable and does not respond quickly to changes in the economy. Property taxes were 24% higher than the prior fiscal year. Yountville has experienced steady growth in property tax over the last few years due to the increase in property valuations as homes have been selling at higher prices, and due to the sale of a large commercial property in December 2021.

Sales Tax Revenues
Sales and Use Tax revenues represent the third largest share of General Fund revenues. The largest share of sales tax is generated from restaurants and the remainder of the business community is comprised of hotels and inns, wine tasting rooms, small retail shops, one grocery store, and one gas station. In Fiscal Year 2022/2023, sales tax growth began to slow as the inflation rate impacted the economy.

Long-Term Financial Planning
The Town Council adopted a balanced budget for Fiscal Year 2022/2023. The Town has a practice of using moderately conservative revenue projections and reviewing and adjusting, as needed, at mid-year. The -
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ACTUAL ACTUAL ACTUAL
2020/2021 2021/2022 2022/2023
Primary Revenues History
Property Tax, Sales Tax and Transient Occupancy Tax
Property Tax Sales Tax Transient Occupancy Tax
Town Council has funded an emergency reserve at 20% of general fund expenditures, a revenue stabilization reserve at 25% of Transient Occupancy Tax Revenue estimates or higher, and fund balances for general and legal contingencies as well as a self-insurance retention. The Town Council has also supported reserve funds for Facility, Repair and Replacement and Tools and Equipment Repair and Replacement to better prepare for funding repairs and replacement needs of the town.

The Town has taken several steps to ensure fiscal stability over the next several years and beyond. The Town has adopted a master fee schedule to manage and monitor charges for services. The master fee schedule is comprehensively reviewed and updated each year prior to the budget cycle to provide updated information for revenue projections and cost recovery targets, where applicable.

The Town Council adopted a water and wastewater utility rate study which includes a five-year enterprise business plan to raise rates for water and wastewater services. The new rates provide the resources needed to operate and maintain the Town’s utility systems and comply with new environmental and regulatory requirements.

The Town Council has established an IRC Section 115 Trust with PARS (Public Agency Retirement Services) for both OPEB (other post-employment benefits) and the CalPERS Unfunded Actuarially Accrued Liability.

Contributions to the OPEB portion of the trust are directed by the Town Council and have followed the actuarially determined contribution issued by the Town’s actuary. Contributions to the pension portion of the trust are at the Town Council’s discretion. These steps have been taken to protect the Town against future economic uncertainty.

Major Initiatives
Managing the increase cost of purchasing water
The Town purchases water from the Rector Reservoir, per a long-term contract with the State of California Veterans Home. The cost of water is calculated each year based on the Town’s proportionate share of Rector Reservoir cost of operations. In the 2018 Utility Rate Study it was estimated that the cost of water would increase approximately 7% in the next five years. However, the cost has proven to increase more than originally anticipated. When Rector Reservoir water is not available, the Town obtains water from the City of Napa, but at a much higher rate. Town staff continues to build on its working relationship with the Veterans Home and seek methods for managing these rising costs.

Managing Rising Pension Costs
The Town of Yountville, like many municipalities throughout the State, is facing rising CalPERS pension costs.

This is primarily related to the changes in CalPERS actuarial assumptions which include changes to discount rate, amortization policies, mortality rates, and the implementation of risk mitigation strategies. The Town has been disciplined to set aside money for our PERS UAAL Reserve Fund, which had a balance of $3.3 million on June 30, 2023. These dedicated reserve funds will aid the Town in meeting future pension obligations.

Pursuing Grant Funding
The Town has been successful in obtaining grants and low-cost financing for projects and will continue this practice to leverage Town resources and provide resources to complete capital projects. In 2014, the Town obtained a $3,465,362 State Revolving Fund Loan for the purpose of financing the Yountville Water Recycling Expansion Project. The loan is a draw down as costs are incurred type of loan. The town received $2,725,340 in loan proceeds. In February 2019, the Town was awarded $500,000 in a HOME Program Grant from the California Department of Housing and Community Development which provides funding for home improvement projects for low-income eligible residents to bring their homes up to current building code standards.

Increasing Affordable and Workforce Housing
On November 6, 2018, Yountville voters approved Measure S which increased the Transient Occupancy Tax (TOT) by one percent (1%) to support workforce and affordable housing efforts. This special tax went into effect as of January 1, 2019. On June 30, 2023, the balance of the Measure S Fund was $2.7million. The Town established a Measure S Workforce and Affordable Housing Committee that reviews fund activity to ensure proper use and apprise the Town Council of potential opportunities to utilize the funds to promote an increase of affordable housing within the Town.

Disaster and Emergency Preparedness Planning
Recent earthquake and fire experiences have clearly demonstrated the importance of the Town’s emergency preparedness and disaster response planning community education and outreach efforts. Work towards improvement continues as we partner with other cities in the county to update the Napa County Hazard Mitigation Plan. The Annual Emergency Preparedness Community workshop was hosted by the Town in September 2022.

Impact of the State Budget
In May 2018, the Associated Press indicated that the State of California has the fifth largest economy in the world. The main sources of uncertainty for California local governments are the economy and the impact from the State of California Budget that included the practice of state takeaways and unfunded mandates.

New legislation has insulated local governments from takeaways, while unfunded mandates and economic downturns remain as uncontrollable factors. The most recent California Department of Finance Bulletin (October 2023) reports unemployment of 3.8% in September 2023 which is 0.3% higher than September 2022. A great concern across the state continues to be increasing costs of housing that will impact a labor shortage. This is a theme shared across the Napa Valley. In response, Measure S (Measure I in Napa County) was passed in the November 2018 election, implemented as of January 1, 2019, and allowed Yountville to increase the hotel tax rate from 12% to 13% for the benefit of workforce housing. The Town developed the 2022/2023 budget assuming there would be no state takeaways or unfunded mandates and staff will continue to review updated economic forecasts and monitor state budget conditions.

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 Town of Yountville for its annual comprehensive financial report for the fiscal year ended June 30, 2022. This was the fourteenth consecutive year that the Town has achieved this prestigious award. To be awarded a Certificate of Achievement, a government agency must publish an easily readable and efficiently organized annual comprehensive financial report.

This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to GFOA to determine its eligibility for another certificate.

ACKNOWLEDGEMENTS
The preparation of this report would not have been possible without the year-round dedication and efficiency of the Town staff; and the support and efforts of the Town’s independent auditors.

We would also like to express thanks and appreciation to the Mayor and Members of the Town Council for their leadership and support, and commitment to fiscal sustainability and long-term financial planning.

Respectfully submitted,
Brad Raulston, Town Manager Celia King, Finance Director Principal Officials

TOWN COUNCIL
Marjorie “Margie” Mohler, Mayor
Eric Knight, Vice Mayor
Robin McKee-Cant, Council Member
Hillery Trippe, Council Member
Pamela Reeves, Council Member

TOWN ADMINISTRATION
Brad Raulston, Town Manager
Gary Bell, Town Attorney
Samantha Holland, Parks & Recreation Director
Celia King, Finance Director
Kyle Batista, Financial Analyst
John Ferons, Public Works Director
Rosalba Ramirez, Deputy Public Works Director
Erica Rodgers, Management Analyst
Irene Borba, Planning & Building Director
Eddy Gomez, Town Clerk
Hilary Gaede, Deputy Town Clerk
Bea Becerra, Management Fellow
Citizens of
Yountville
Town Attorney
Commissions, Boards
& Committees
Mayor and Town
Council
Town Manager
Deputy Director
HR & IT*
Code
Compliance
Manager
Parks and
Recreation
Director
Administrative
Assistant
Recreation
Coordinator (2)
Building
Attendants
(Part-Time)
Planning and
Building
Director
Public Works
Director
Deputy Public
Works Director
Utility
Operations
Manager
Engineering
Technician Utilities
Operator (3)
Municipal
Operations
Manager
Maintenance
Worker (4)
Water Systems
Maintenance
Worker
Facility and
Grounds
Worker
Maintenance
Assistant
(PT Seasonal)
Fiscal Year 2022-2023
Town Organizational
Chart
Marketing
Specialist
(Part-Time)
Recreation
Assistants
(Part-Time)
Recreation
Specialists
(Part-Time)
Finance
Director
Management
Analyst
Accounting
Assistant
(Part-Time)
Administrative
Assistant
Assistant
Planner
Planning
Manager
Financial
Analyst
Management
Fellow
Accounting
Assistant
Recreation
Supervisor
*formerly HR
Manager
Information
Technology
Manager
Town Clerk
Deputy Town
Clerk
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Yountville
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
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Financial Section
Management Discussion and Analysis,
Basic Financial Statements,
and
Notes to the Basic Financial Statements
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15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the Town Council
of the Town of Yountville
Yountville, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the Town of Yountville (the “Town"), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise Town’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, business-type activities, each major fund, and the aggregate remaining fund information of the Town of Yountville, as of June 30, 2023, 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 Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) 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 Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town 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 a Matter
As discussed in Note 1 lo the financial statements, for the year ended June 30, 2023, the Town adopted new accounting guidance, Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information Technology Arrangements. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Town 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 Town’s ability to continue as a

15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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 auditor’s 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 GAAS 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 GAAS 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 Town’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 Town’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 and other required supplementary information, as listed in 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 GAAS, 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.

15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The combining and individual fund financial statements and schedules 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 GAAS. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
The Town’s management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s 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 October 23, 2023 on our consideration of the Town’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 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 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 the Town’s internal control over financial reporting and compliance.

Chavan & Associates, LLP
Certified Public Accountants
October 23, 2023
Morgan Hill, California
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MANAGEMENT’S DISCUSSION

AND ANALYSIS
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Town of Yountville Management’s Discussion and Analysis

INTRODUCTION
As management of the Town of Yountville, we offer readers of the Town’s financial statements this narrative overview and analysis of financial activities of the Town of Yountville, for the fiscal year that ended on June 30, 2023. We encourage readers to consider the information presented here, in conjunction with additional information that we have furnished in our letter of transmittal. This information can be found on pages 1-8 of this report. The required components of the report are listed below.

Required Components of the Annual Financial Report
FISCAL YEAR 2022/2023 FINANCIAL HIGHLIGHTS
Government-Wide Highlights
 The assets and deferred outflows of resources of the Town of Yountville exceeded the liabilities and deferred inflows of resources at the close of the most recent fiscal year by $72.71 million (net position). Of this amount, net position included $38.34 million classified as net investment in capital assets; $9.97 million as restricted; and $24.41 million as unrestricted net position.  The Town’s net position increased by $6.23 million, and its change in net position decreased by $1.56 million, from $7.79 million, in FY 2022/2023. In the Governmental Activities, tax revenues decreased by $0.61 million, charges for services increased by $0.28 million and capital grants and contributions decreased by $0.36 million.
 In the Business-Type Activities, charges for services increased by $0.17 million and capital grants and contributions increased by $0.03 million.
 Deferred outflows of resources increased by $1.24 million while deferred inflows of resources decreased by $0.65 million mostly due to differences in expected and actual earnings, expected and actual experiences and changes in proportions. The Town’s pension liability in accordance with Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
Town of Yountville Management’s Discussion and Analysis GASB 68 as of June 30, 2023 was $5.16 million, while the net OPEB liability for the fiscal year ending June 30, 2023 was $0.07 million.
 The Town’s long-term debt decreased by $0.8 million, or 8%, in Fiscal Year 2022/2023 primarily from debt service payments made during the year.
 The Town’s net capital assets decreased by 0.51%, or $0.24 million, primarily as a result of depreciation.
 Capital projects expenditures totaled $0.98 million with approximately $0.59 million of ongoing maintenance and replacement projects. The table below shows details of significant projects.

Fund Highlights
 At the close of Fiscal Year 2022/2023, the Town of Yountville’s governmental funds reported combined fund balances of $29.91 million, an increase of $4.3 million in comparison with the prior year. Approximately 22%, or $6.5 million, was classified as unassigned fund balance and was available for spending at the government’s discretion.
 At the end of the Fiscal Year 2022/2023, the general fund’s unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) was $15.68 million, or 154% of total general fund expenditures, prior to transfers. The general fund’s unassigned fund balance was $6.5 million or 64% of total general fund expenditures, prior to transfers.  The General Fund balance increased by $1.46 million, with revenues of $15.42 million and expenditures of $10.23 million, prior to transfers out of $3.73 million. Revenues increased over the prior year by $0.28 million mostly due to an increase in property taxes, while expenses increased by $1.41 million.

OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the Town of Yountville’s financial statements. The Town of Yountville’s basic financial statements are comprised of (1) Government-wide Financial Statements (2) Fund Financial Statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Major Capital Projects are as follows: Budget Actual
Community Hall Generator Auto Switch 148,330 148,330
ADA Accessibility Improvements Program 116,000 114,400
Annual Street Maintenance Program 525,000 354,279
Joint Treatment Plant Office Modernization Project 803,000 171,276 Inflow and Infiltration Reduction Program (A-Line) 698,334 370,182 Emergency Recycled Water Line Repair 77,100 59,020
Total 2,367,764 1,217,487
Town of Yountville Management’s Discussion and Analysis Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the Town of Yountville’s finances, in a manner similar to a private-sector business. Government-wide financial statements are prepared on an accrual basis, which means they measure the flow of all economic resources of the Town as a whole. Government-wide financial statements consist of the Statement of Net Position and the Statement of Activities.

The Statement of Net Position presents financial information on all of the Town of Yountville’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town of Yountville is improving or declining.

The Statement of Activities presents information showing how the Town of Yountville’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. This is consistent with a full accrual concept, which may result in the reporting of revenues and expenses in the current fiscal year, with cash flows occurring in future fiscal periods (e.g., uncollected revenues; and earned but not used vacation leave).

Both of the government-wide financial statements distinguish functions of the Town of Yountville that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). An overview of the Town’s functions associated with each classification is listed below.

Governmental Activities – All of the Town's basic services are considered to be governmental activities. This includes law enforcement, fire and emergency services, planning and building, public works, parks and recreation, community center, community promotion, housing, and general administration. Transient occupancy taxes, sales taxes, property taxes, state, and federal grants finance most of these activities.

Charges for services, which include parks and recreation fees, are also used to help offset the costs of providing certain services.

Business-Type Activities – This Town’s enterprise activities include Waste and Wastewater operations.

Unlike governmental services, these services are fully supported by charges paid by users based on the amount of services they use.

The government-wide financial statements can be found on pages 37-38 of this report.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Fund financial statements provide detailed information about each of the Town's most significant funds, called major funds. Major funds are presented individually, with all non-major funds summarized and presented only in a single column. Subordinate schedules present the details of these non-major funds.

Major funds present the major activities of the Town for the fiscal year and may change from year to year as a result of changes in the pattern of the Town's activities. The Town's funds are segregated into three categories: governmental funds, proprietary funds, and fiduciary funds.

Town of Yountville Management’s Discussion and Analysis Governmental Funds
Governmental funds are used to account for essentially the same function reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. This represents a modified accrual basis of accounting, with capital assets, long-lived assets, and long-term liabilities excluded from the financial statements. Such information may be useful in evaluating the Town's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.

The Town maintains multiple governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Capital Projects Fund, Debt Service Fund, and the Measure T Fund.

These funds are considered to be major funds. Data from the other 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 in the combining and individual fund statements and schedules section of this report. A budgetary comparison statement has been provided as required supplementary information for the General Fund and Measure T fund to demonstrate compliance with this budget. The governmental fund financial statements can be found on pages 40-43 of this report.

Proprietary Funds
The Town of Yountville has the following two enterprise funds which are proprietary funds: Water and Wastewater Funds which are considered major funds for the Town of Yountville. Enterprise funds provide the same type of information as business-type activities in the government-wide statements.

The basic proprietary fund financial statements can be found on pages 46-48 of this report.

Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the Town.

Fiduciary funds are not reported in the Government-Wide financial statements because the resources of these funds are not available to support the Town of Yountville’s own programs. The accounting for fiduciary funds is much like that used for business type activities. The Town did maintain two fiduciary funds during Fiscal Year 2022/2023, the Other Postemployment Benefit Trust fund and the Napa Valley Tourism Improvement District custodial fund as noted in pages 50-51.

NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes can be found immediately following the fund financial statements.

Town of Yountville Management’s Discussion and Analysis

OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the Town of Yountville’s funding progress for its employee pension and OPEB benefit obligations. The required supplementary information can be found on pages 90-96 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information on pensions and OPEB as supplementary information. Combining and individual fund statements and schedules can be found on pages 101-134 of this report. The Town also provides comparative statements for its Water and Wastewater enterprise funds in the supplementary information section. An un-audited statistical section provides historical and current data on financial trends, revenue and debt capacity, demographic and economic information, and operating information. This information can be found on pages 139-156 of this document.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Over time, net position may serve as an indicator of a government’s financial position. In the case of the Town of Yountville, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $72.71 million at the close of the Fiscal Year 2022/2023. This represents an increase of $6.23 million over the prior year.

The following table summarizes the Town’s ending net position:

Net position of the Town’s governmental activities increased $4.53 million to $54.61 million. Approximately 31% of net position relating to governmental activities are unrestricted, and a significant portion, or $27.65 million, of the Town's net position reflects its investment in capital assets, (e.g., land, buildings, general government infrastructure, equipment, etc.), less accumulated depreciation and any outstanding that was debt used to acquire or construct those assets. Capital assets represent infrastructure which provide services to citizens and are not available for future spending. Although the Town‘s investment in capital assets is reported net of related debt, it should be noted that the resources to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate the liabilities. 2023 2022 2023 2022 2023 2022
Assets
Current and other assets $ 33.14 $ 27.43 $ 8.81 $ 7.73 $ 41.95 $ 35.16 Capital assets 36.56 37.02 11.28 11.07 47.85 48.09
Total Assets $ 69.70 $ 64.45 $ 20.10 $ 18.80 $ 89.80 $ 83.25 Deferred Outflows of Resources $ 2.21 $ 1.28 $ 0.67 $ 0.36 $ 2.88 $ 1.64 Liabilities
Current and other liabilities $ 1.67 $ 1.44 $ 0.57 $ 0.67 $ 2.24 $ 2.11 Noncurrent liabilities 12.46 10.89 1.76 1.26 14.23 12.14 Total Liabilities $ 14.14 $ 12.32 $ 2.33 $ 1.93 $ 16.47 $ 14.26 Deferred Inflows of Resources $ 3.17 $ 3.33 $ 0.33 $ 0.82 $ 3.50 $ 4.15 Net Position
Net investment in capital assets $ 27.65 $ 27.80 $ 10.68 $ 10.32 $ 38.34 $ 38.12 Restricted 9.97 7.45 - - 9.97 7.45
Unrestricted 16.99 14.83 7.42 6.08 24.41 20.91
Total Net Position $ 54.61 $ 50.08 $ 18.11 $ 16.41 $ 72.71 $ 66.48 Table 1 - Net Position
Governmental Activities Business-Type Activities Total
Town of Yountville Management’s Discussion and Analysis Total liabilities related to governmental activities increased by $1.81 million due to increases in long term debt as well as net pension and net OPEB liabilities. The Town’s net pension liability as of June 30, 2023 was $3.9 million. The Town’s net OPEB liability as of June 30, 2023 was $57,465. See Note 9 and Note 10 for detailed information related to pension plans and OPEB, along with the required supplementary information section of this report. Deferred Outflows of Resources and Deferred Inflows of Resources both increased, mostly due to pension and OPEB adjustments as well as the implementation of GASB 87 regarding Leases..

Total net position of the Town’s business-type activities increased $1.69 million, to $18.11 million. A business plan to eliminate ongoing deficits and provide the funding necessary for future infrastructure improvements was adopted in November 2022 and the first of five implementations was completed in January of 2023. No deficits were reported in 2023.

At the end of the current fiscal year, the Town of Yountville is able to report a positive balance for the government as a whole. The reasons for the overall financial changes are discussed in the following sections for governmental and business-type activities.

Governmental Activities
As shown in the following Statement of Changes in Net Position schedule, the net position for governmental activities increased from $50.076 million in the prior year to $54.608 million in the current fiscal year. This increase is mostly attributed to greater than expected Property Tax and Transient Occupancy Tax revenue collections and reduced departmental expenditures.

With total revenues for Fiscal Year 2022/2023 at $17.37 million and total expenses at $11.98 million, the change in net position for current activity yielded an increase of $4.53 million. An analysis of the changes in revenues and expenses by type of significant events follows:

Increase Increase
Functions/Programs 2023 2022 (Decrease) 2023 2022 (Decrease) Program Revenues
Charges for services $ 1.165 $ 0.889 $ 0.276 $ 4.193 $ 4.017 $ 0.175 Operating grants and contributions 1.456 1.662 (0.206) - - - Capital grants and contributions 0.852 1.217 (0.365) 0.246 0.216 0.031 Total Program Revenues 3.473 3.767 (0.294) 4.439 4.233 0.206 General Revenues
Taxes 13.319 13.872 (0.553) - - -
Investment earnings 0.555 (0.458) 1.012 0.133 (0.029) 0.163 Other revenues 0.026 0.094 (0.068) 0.002 0.010 (0.007)
Total Revenues 17.373 17.276 0.097 4.574 4.213 0.361
Expenses
General Government 3.973 3.519 0.453 - - -
Housing 0.100 0.452 (0.352) - - -
Public Safety 1.864 1.644 0.220 - - -
Public Works 3.314 2.904 0.410 - - -
Community Promotion 0.362 0.361 0.001 - - -
Parks and Recreation 2.097 1.688 0.409 - - -
Interest on fiscal charges 0.268 0.286 (0.018) - - -
Water Services - - - 1.518 1.434 0.084
Wastewater Services - - - 2.222 1.748 0.474
Total Expenses 11.976 10.853 1.123 3.741 3.182 0.558
Excess of Revenues Over Expenses 5.396 6.422 (1.026) 0.834 1.031 (0.197) Special items - 0.341 (0.341) - - -
Transfers (0.865) 0.023 (0.888) 0.865 (0.023) 0.888
Increase / (Decrease) in Net Position 4.532 6.786 (2.254) 1.698 1.008 0.690 Prior Period Adjustments - (0.003) 0.003 - - -
Net Position, Beginning of Year 50.076 43.294 6.783 16.408 15.400 1.008 Net Position, End of Year $ 54.608 $ 50.076 $ 4.532 $ 18.106 $ 16.408 $ 1.698 Table 2 - Statement of Changes in Net Position
Governmental Activities Business-Type Activities
Town of Yountville Management’s Discussion and Analysis Governmental Revenues
The following chart summarizes the changes in revenues by category during Fiscal Year 2022/2023:

Significant changes in governmental revenues consisted of the following:
 Charges for Services revenue increased by approximately $0.276 million or 31%. Parks & Recreation collected more Summer Camp revenue due to increased fees and higher enrollment, and higher revenue for park and facility rentals as more events are being held than prior post-COVID fiscal years.
 Tax revenue decreased by approximately $0.55 million or 4%, with changes primarily related to the following categories:
o Property tax revenue increased by $362,685 or 15.8%, due to continuing increases in property values.
o Transient Occupancy Tax revenue decreased by $945,743 or 9.8%. Fiscal Year 2022/2023 experienced lower room rates, yet higher occupancy rates, in comparison to the prior fiscal year in which there was a substantial post-COVID rebound in travel resulting in an unprecedented amount of TOT collections.
o Sales Tax revenues decreased by $89,234 or approximately 5.2% due to less consumer spending as a result of ongoing inflation pressures.
 Operating grants and contributions decreased by approximately $0.206 million or 12% since the Town received less Federal and state funding than it did in the prior fiscal year.  Capital grants and contributions decreased by approximately $0.365 million or 30% as the Town received less grant funding for capital projects.

Town of Yountville Management’s Discussion and Analysis Governmental Expenses
The Fiscal Year 2022/2023 expenses for Governmental Activities increased by $1.12 million, or 10%, as illustrated in the chart below:

Significant changes in governmental expenses primarily consisted of the following:
 General Government increased by $0.45 million primarily due to the approval of a discretionary contribution to the Pension Rate Stabilization Plan (PRSP) Trust.  Housing decreased by $0.35 million mostly due to the Town Council approved purchase of 6631 Oak Leaf Court which was then sold to Napa Valley Community Housing as a Deed Restricted Low Income Housing Unit in the prior fiscal year.
 Public Safety increased by $0.22 million due to an increase in contract costs for Sheriff services and Fire and Emergency Medical services.
 Public Works increased by $0.41 million partially due to salary increases approved in the most recently approved employee MOU’s and the approval of a discretionary contribution to the Pension Rate Stabilization Plan (PRSP) Trust.
 Parks and recreation increased by $0.41 million partially due to salary increases approved in the most recently approved employee MOU’s and the approval of a discretionary contribution to the Pension Rate Stabilization Plan (PRSP) Trust.

Business-Type Activities
The Town’s business type activities represent the water and wastewater utility enterprise operation.

The Town purchases water from the state Veterans Home for resale to approximately 834 customers.

The sewer collection system operated by the Town serves about 766 customers. The Town also operates the wastewater treatment plant and has a cost sharing agreement with the Veterans Home to provide services.

Total Program Revenue for business-type activities was $4.44 million comprised of $4.19 in charges for services and $0.25 million in capital grants. Total operating revenue from the prior year was $4.23 million.

Total expenses for business-type activities were $3.74 million, which was an increase of approximately $0.56 million when compared to the prior year.

Town of Yountville Management’s Discussion and Analysis The following chart is a summary of the changes in revenues and expenses for the Town’s businesstype activities from Fiscal Year 2021/2022 to 2022/2023:

Business-Type activities should generate enough revenue to cover the cost of operations and capital infrastructure. Major cost increases included the cost to purchase water for resale, general cost increases for operating supplies and services, and expenses related to projects required to maintain compliance with state regulations and replace aging infrastructure.

The Town Council approved a five-year water/wastewater rate schedule on November 15, 2022 to ensure the fiscal sustainability of the utility enterprises. The rate schedule was established to phase in the rate increases necessary to eliminate the utility enterprise operating deficits. The first annual rate increase was effective January 1, 2023 and will continue each January 1, through 2027.

FINANCIAL ANALYSIS OF THE TOWN’S GOVERNMENTAL FUNDS
As noted earlier, the Town of Yountville uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

The focus of the Town’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, the unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the Town itself, or a group or individual that has been delegated authority to assign resources for particular purposes by the Town of Yountville’s Council.

Town of Yountville Management’s Discussion and Analysis The following table summarizes the changes in fund balance of the Major Funds and Other Nonmajor Governmental Funds:

In fiscal year 2022/2023, General fund revenues exceeded expenditures by $5.19 million. As presented earlier in connection with governmental activities, Property Tax revenue increased due to higher assessed values. The total general fund expenditures, prior to transfers was $10.23 million. Savings on Napa County Fire services, along with some salary savings within general fund departments because of staff turnover account for the reduction of estimated expenses by approximately 16%.

Other nonmajor governmental funds reflected an aggregate increase to total fund balance. The Capital Projects fund had an increase in fund balance of $0.83 million as a number of planned projects continued into the following fiscal year.

Required debt service payments were covered by General Fund Transfers, and the Debt Service Funds ended Fiscal Year 2022/2023 with an increase to fund balance of $0.27 million. Measure T Fund ended the fiscal year with an increase to total fund balance of $0.34 million.

General Fund – Components of Fund Balance
The general fund is the chief operating fund of the Town of Yountville. At the end of the current fiscal year, the unassigned fund balance of the general fund was $6.5 million, and the total fund balance increased to $19.1 million. This is an increase to the total fund balance of $1.46 million, or 8%, from the prior year.

Capital Debt Nonmajor
General Projects Service Measure T Governmental
Fund Fund Fund Fund Funds Total
Total Revenues $ 0.04 15.42 $ $ 0.02 $ 0.69 $ 1.26 $ 17.43 Total Expenditures 0.31 10.23 0.90 0.35 0.48 12.27
Revenues Over (Under) Expenditures (0.27) 5.19 (0.88) 0.34 0.79 5.16 Other Financing Sources - - - - - -
Transfers In - 1.10 1.15 - 0.62 2.87
Transfers Out - (3.73) - - (0.00) (3.73)
Net Change in Fund Balances 0.83 1.46 0.27 0.34 1.40 4.30 Beginning Fund Balances 1.00 17.64 0.07 0.20 6.71 25.61 Prior Period Adjustment - - - - - -
Ending Fund Balances $ 1.83 19.10 $ $ 0.34 $ 0.54 $ 8.11 $ 29.91 Major Funds
Table 3 - Summary of Changes in Fund Balance - Governmental Funds Town of Yountville Management’s Discussion and Analysis The major components of the fund balance are shown below:

The following chart displays the fund balance allocations of the General Fund as of June 30, 2023:

Town of Yountville Management’s Discussion and Analysis The following chart displays the components of fund balance for governmental funds other than the General Fund:

CAPITAL ASSETS
The Town of Yountville’s investment in capital assets for its governmental and business-type activities as of June 30, 2023 amounts to $47.85 million (net of accumulated depreciation/amortization). This includes net capital assets from governmental activities of $36.56 million and net capital assets from business type activities at $11.28 million. The total decrease in the Town of Yountville’s capital assets during the current fiscal year was approximately $0.24 million. This includes a net decrease of $0.45 million related to Governmental Activities and a net increase of $0.21 million related to Business-type Activities.

The following table summarizes the Town’s capital assets at the end of the year:

Additional details and information on capital asset activity is described in the notes to the financial statements, Note 6.
2023 2022 2023 2022 2023 2022 % Change
Land $ 1.73 1.73 $ 0.01 $ 0.01 $ 1.73 $ 1.73 $ 0.00%
Construction-in-Progress 0.07 0.05 0.72 0.11 0.77 320.49% 0.18 Buildings 13.77 13.33 0.01 0.01 13.34 13.78 -3.18%
Improvements other than building 2.66 2.54 - - 2.54 -4.33% 2.66 Infrastructure 18.13 17.87 10.39 10.76 28.27 28.89 -2.18% Machinery and equipment 0.67 0.71 0.15 0.18 0.86 2.11% 0.85 Subscrition-based assets - 0.33 - - 0.33 100.00% -
Total Capital Assets, Net $ 37.02 36.56 $ 11.28 $ 11.07 $ 47.85 $ 48.09 $ -0.51% Table 4 - Capital Assets at Year End - Net
Governmental Activities Total Business-type Activities
Town of Yountville Management’s Discussion and Analysis

DEBT ADMINISTRATION
During the year, Long-Term Debt from governmental activities decreased by $0.65 million primarily due to debt service payments, while Long-Term Debt attributable to business type activities decreased by $0.15 million. The reductions resulted from debt service payments.

The following table summarizes the Town’s debt at the end of the year:

Additional detail and information on long-term debt activity is described in the notes to the financial statements, Note 7.

GENERAL FUND BUDGETARY HIGHLIGHTS
Changes from the Town's General Fund original budget to the final budget are detailed in the Required Supplementary Information section along with a comparison to actual activity for the year ended. In Fiscal Year 2022/2023, the Town originally estimated the general fund would have a surplus of $51,945 and would not need to drawdown from fund balance to maintain normal operations. Due to increased performance in revenues over the last two fiscal years, the Town had sufficient fund balance to transfer cash to other funds and programs to establish new reserves, fund existing reserves and repay loans.

Revenues
The General Fund adopted and final revenue budgets were $12.85 and $12.85 million. A review of the 2022/2023 budget shows actual revenues recorded were $15.42 million or 20% more than the Town’s original budget. This increase in revenues was mainly contributed to receiving 17% more in TOT collections and 23% more in property taxes than what was anticipated in the original and final budgets.

Expenditures
The General Fund adopted expenditure budget was $10.98 million and the final budget was $12.15 million. Actual expenditures totaled $10.23 million, which is 7% less than the Town’s original budget.

The bulk of general fund savings was generated by a lower cost for Napa County Fire services, salary savings from staff turnover, and less Contract Services activity than originally anticipated. 2023 2022 % Change
2017 Lease Revenue Refunding Bonds $ 7.14 $ 7.44 -4.03% Unamortized Premiums 0.33 0.35 -5.56%
2020 Financing Lease - Direct Borrowing 1.35 1.68 -19.34% CEC Loan - Direct Borrowing - 0.01 -100.00%
Total outstanding long-term debt $ 8.82 $ 9.48 -6.90%
2023 2022 % Change
State Revolving Loan 0.60 0.75 -20.11%
Total outstanding long-term debt $ 0.60 $ 0.75 -20.11%
Table 5 - Outstanding Long-Term Debt at Year End
Governmental Activities
Business-type Activities
Town of Yountville Management’s Discussion and Analysis ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The Town Council adopted a balanced budget for 2023/2024 on June 6, 2023. Key items include:
 General Fund revenues are estimated to be $13.45 million.  General Fund eexpenditures of $11.47 million are within the available revenue stream.  Proposed budget is largely status quo and maintains existing levels of service.  Employee count is 34 ffull-time employees.
 Implements the second year of a five year labor agreement with the employee groups and includes a 4.6% Cost of Living Adjustment (COLA) as of July 1, 2023.  Maintained and/or increased fund balances:
o Committed for Insurance and Claims Retention $50,000
o Assigned for Legal Contingency Reserve $250,000
o Assigned for Budget Contingency $573,667
o Assigned for Leave Buy Out $160,000
o Assigned for Workers Comp Self Insured Retention $20,000 o Assigned for Affordable Housing Opportunities $3,616,075 o Assigned for Purchase Orders $200,000
o Emergency Reserve Fund $2,857,761
o Revenue Stabilization Reserve Fund $2,865,569
o Utility Enterprise Capital Projects Reserve Fund $1,680,000 o Water Enterprise Drought Emergency Reserve Fund $2,016,208 Key infrastructure projects include: Shade Structure for Community Center, Town Hall Landscaping & Access, Electric Vehicle (EV) Fleet & Installation of EV Charging Stations, Annual Street Maintenance and Paving Program, Pump House Rebuild at Van de Leur Park, Vineyard Park Enhancement, Shade Structure at North Park, Washington Street Parking Lot Beautification, Utility Undergrounding Engineering & Design, Recycled Water Transmission Line Repair, and Joint Treatment Plant Office Modernization.

REQUEST FOR FINANCIAL INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the Town’s finances and to demonstrate the Town’s accountability for the money it receives and spends. If you have questions about this report or need additional financial information, contact the Finance Director, Town of Yountville, 6550 Yount Street, Yountville, CA 94599 or visit the Town’s website at: www.townofyountville.com.

BASIC FINANCIAL STATEMENTS
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Town of Yountville
Statement of Net Position
June 30, 2023
BusinessGovernmental Type
ASSETS Activities Activities Total
Current Assets:

Cash and investments $ 23,268,923 $ 8,218,176 $ 31,487,099 Restricted cash and investments with fiscal agents 3,342,582 - 3,342,582 Receivables:

Taxes receivable 1,962,319 - 1,962,319
Accounts receivable 30,122 541,863 571,985
Interest receivable 156,018 54,594 210,612
Lease receivable, current 183,981 - 183,981
Due from other governments 203,748 - 203,748
Total Current Assets 29,147,693 8,814,633 37,962,326
Noncurrent Assets:

Leases receivable 2,147,530 - 2,147,530
Loans receivable 1,844,131 - 1,844,131
Capital Assets:

Nondepreciable 1,777,873 726,560 2,504,433
Depreciable, net of accumulated depreciation 34,786,495 10,555,843 45,342,338 Total Capital Assets, Net 36,564,368 11,282,403 47,846,771 Total Noncurrent Assets 40,556,029 11,282,403 51,838,432 Total Assets $ 69,703,722 $ 20,097,036 $ 89,800,758

DEFERRED OUTFLOWS OF RESOURCES
Pension Adjustments $ 1,787,914 $ 608,833 $ 2,396,747
OPEB Adjustments 187,147 60,403 247,550
Deferred Loss on Refunding 238,761 - 238,761
Total Deferred Outflows of Resources $ 2,213,822 $ 669,236 $ 2,883,058

LIABILITIES
Current Liabilities:

Accounts payable $ 588,165 $ 392,057 $ 980,222
Other current liabilities 231,423 - 231,423
Interest payable 21,000 7,104 28,104
Compensated absences, due within one year 46,299 14,832 61,131 Long-term debt, due within one year 785,250 153,307 938,557 Total Current Liabilities 1,672,137 567,300 2,239,437
Noncurrent Liabilities:

Net pension liability 3,903,310 1,257,360 5,160,670
Net OPEB liability 57,465 18,548 76,013
Compensated absences, due in more than one year 138,896 44,497 183,393 Long-term debt and other liabilities - due in more than one year 8,364,851 444,288 8,809,139 Total Noncurrent Liabilities 12,464,522 1,764,693 14,229,215 Total Liabilities $ 14,136,659 $ 2,331,993 $ 16,468,652

DEFERRED INFLOWS OF RESOURCES
Leases $ 2,256,369 $ - $ 2,256,369
Pension Adjustments 127,052 73,513 200,565
OPEB Adjustments 789,177 254,707 1,043,884
Total Deferred Inflows of Resources $ 3,172,598 $ 328,220 $ 3,500,818

NET POSITION
Net investment in capital assets $ 27,653,028 $ 10,684,808 $ 38,337,836 Restricted for:

Streets 1,536,087 - 1,536,087
Housing 4,419,214 - 4,419,214
Cultural programs 205,674 - 205,674
Other 126,640 - 126,640
Pension stabilization 3,342,309 - 3,342,309
Debt service 337,134 - 337,134
Total Restricted 9,967,058 - 9,967,058
Unrestricted 16,988,201 7,421,251 24,409,452
Total Net Position $ 54,608,287 $ 18,106,059 $ 72,714,346 The accompanying notes are an integral part of these financial statements.

Town of Yountville
Statement of ActivitiesFor the Year Ended June 30, 2023 Operating Capital
Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Total Activities Activities TotalPrimary Government:

Governmental Activities:

General Government 3,972,698 $ 668,223 $ 311,280 $ - $ 979,503 $ (2,993,195) $ (2,993,195) $ Housing 99,541 -850,327 - 850,327 750,786 750,786
Public Safety 1,863,654 742 172,271 - 173,013 (1,690,641) (1,690,641) Public Works 3,314,473 23,164 12,630 851,668 887,462 (2,427,011) (2,427,011) Community Promotion 361,682 11,532 22,526 - 34,058 (327,624) (327,624) Parks and Recreation 2,096,806 461,435 87,299 - 548,734 (1,548,072) (1,548,072) Interest and fiscal charges 267,515 - - - - (267,515) (267,515) Total Governmental Activities $ 11,976,369 $ 1,165,096 $ 1,456,333 $ 851,668 $ 3,473,097 (8,503,272) (8,503,272) Business-Type Activities:

Water Services $ 1,518,282 $ 1,758,290 $ - $ 1,758,290 - $ $ 240,008 240,008 Wastewater Services 2,222,374 2,434,230 - 246,171 2,680,401 458,027 458,027 Total Business-Type Activities $ 4,192,520 3,740,656 $ -$ $ 246,171 $ 4,438,691 698,035 698,035 General Revenues:

Taxes:

Property taxes 2,657,168 2,657,168 -
Sales and use taxes 1,628,440 1,628,440 -
Transient occupancy taxes 8,750,591 8,750,591 -Franchise taxes 283,203 283,203 - Total taxes 13,319,402 13,319,402 -
Investment earnings (loss) 554,653 133,262 687,915
Other revenues 25,614 2,304 27,918
Total General Revenues 13,899,669 135,566 14,035,235
Transfers (864,528) 864,528 -
Total General Revenues and Transfers 13,035,141 1,000,094 14,035,235Change in Net Position 4,531,869 1,698,129 6,229,998 Net Position - Beginning of Year 50,076,418 16,407,930 66,484,348Net Position - End of Year $ 54,608,287 $ 18,106,059 $ 72,714,346 The accompanying notes are an integral part of these financial statements.

Program Revenues

GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund is the Town's primary operating fund. It accounts for all financial resources of general government, except those required to be accounted for in another fund.

Capital Projects Fund accounts for the resources accumulated for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary funds. Significant maintenance projects and major purchases of equipment are also accounted for in the capital projects fund.

Debt Service Fund is used to accumulate resources for repayment of the revenue bonds and capital lease arrangements.

Measure T Fund is used to account for revenue received from the Measure T Ordinance (Napa Countywide Road Maintenance Act) that collects a half cent sales tax going toward projects that improve streets, sidewalks, and related street infrastructure improvements.

Town of Yountville
Balance Sheet
Governmental Funds
June 30, 2023
Capital Debt Nonmajor Total
General Projects Service Measure T Governmental Governmental Fund Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 1,815,690 14,579,583 $ 333,669 $ 248,857 $ 6,291,124 $ 23,268,923 $ Cash with fiscal agent - 3,342,309 273 - - 3,342,582
Taxes receivable 1,677,360 - - 159,983 124,976 1,962,319 Accounts receivable 30,122 - - - - 30,122
Interest receivable 98,047 12,230 3,192 2,739 39,810 156,018 Due from other governments 67,390 - - 123,581 12,777 203,748 Due from other funds - - - - 1,215 1,215
Leases receivable 2,331,511 - - - - 2,331,511
Loans receivable - - - - 1,844,131 1,844,131
Total assets $ 22,126,322 $ 1,827,920 $ 337,134 $ 535,160 $ 8,314,033 $ 33,140,569

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:

Accounts payable $ 542,704 $ - $ - $ - $ 45,461 $ 588,165 Other liabilities 228,698 - - - 2,725 231,423
Due to other funds 1,215 - - - - 1,215
Total liabilities 772,617 - - - 48,186 820,803
Deferred Inflows of Resources:

Leases $ 2,256,369 $ - $ - $ - $ - $ 2,256,369
Unavailable revenues - - - - 157,425 157,425
Total deferred inflows of resources $ 2,256,369 $ - $ - $ - $ 157,425 $ 2,413,794 Fund Balances:

Nonspendable
Leases 75,142 - - - - 75,142
Restricted:

Streets - - - 535,160 1,000,927 1,536,087
Housing - - - - 4,419,214 4,419,214
Cultural programs - - - - 205,674 205,674
Other - - - - 126,640 126,640
Pension stabilization 3,342,309 - - - - 3,342,309
Debt service - - 337,134 - - 337,134
Total restricted 3,342,309 - 337,134 535,160 5,752,455 9,967,058 Committed:

Affordable housing opportunities 3,616,075 - - - - 3,616,075 Claims 50,000 - - - - 50,000
Capital projects 1,827,920 - - - - 1,827,920
Emergency reserve fund 2,855,601 - - - - 2,855,601
Utility enterprise capital projects 1,677,172 - - - - 1,677,172 OPEB and pensions 58,058 - - - - 58,058
Total committed 8,256,906 1,827,920 - - 10,084,826 -
Assigned:

Leave buy out 100,657 - - - - 100,657
Legal claims 145,000 - - - - 145,000
Workers compensation self-insurance retention 20,000 - - - - 20,000 Capital projects - - - - 2,355,967 2,355,967
Budget contingency 462,120 - - - - 462,120
Outstanding purchase orders 200,000 - - - - 200,000
Total assigned 927,777 - - - 2,355,967 3,283,744
Unassigned
Unanticipated tourism revenue deficits 2,855,127 - - - - 2,855,127 Unassigned 3,640,075 - - - - 3,640,075
Total unassigned 6,495,202 - - - - 6,495,202
Total fund balances 19,097,336 1,827,920 337,134 535,160 8,108,422 29,905,972 Total liabilities, deferred inflows of
resources and fund balances $ 22,126,322 $ 1,827,920 $ 337,134 $ 535,160 $ 8,314,033 $ 33,140,569 The accompanying notes are an integral part of these financial statements.

Major Funds
Town of Yountville
Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2023
Total Fund Balances - Total Governmental Funds $ 29,905,972 Amounts reported for governmental activities in the statement of net position were different because:

Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows:

Capital assets 53,370,801
Less: accumulated depreciation (16,806,433)
Total Capital Assets 36,564,368
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in Governmental Funds Balance Sheet. (21,000) The differences from benefit plan assumptions and estimates versus actuals are not included in the plan's actuarial study until the next fiscal year and are reported as deferred inflows or deferred outflows of resources in the statement of net position. 1,058,832 The difference between the carrying value of refunded debt and the reacquisition price is deferred and amortized over the shorter of the remaining life of the refunded debt or the refunding debt. 238,761 Liabilities were reported for certain revenues that were not available to pay current period expenditures and were reported as unearned in the fund statements. 157,425 Long-term obligations were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted as follows:

Long-term debt and other liabilities (9,150,101)
Compensated absences (185,195)
Net pension liability (3,903,310)
Net OPEB liability (57,465)
Total Long-Term Obligations (13,296,071)
Net Position of Governmental Activities $ 54,608,287
The accompanying notes are an integral part of these financial statements.

Town of Yountville
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2023
Capital Debt Nonmajor Total
General Projects Service Measure T Governmental Governmental Fund Fund Fund Fund Funds Funds

REVENUES
Property taxes $ 2,657,168 $ - $ - $ - $ - $ 2,657,168
Sales taxes 1,628,440 - - - - 1,628,440
Transient occupancy tax 8,750,591 - - - - 8,750,591
Other taxes 175,975 - - - 855,131 1,031,106
Licenses and permits 225,141 - - - 11,332 236,473
Fines and forfeitures 60,023 - - - - 60,023
Intergovernmental 257,362 14,010 - 687,914 270,600 1,229,886 Interest 449,117 28,367 15,119 5,255 115,961 613,819
Rent and concessions 378,789 - - - - 378,789
Charges for Services 487,620 1 - - 2,245 489,866
Other Revenue 346,265 - - - 9,508 355,773
Total Revenues 15,416,491 42,378 15,119 693,169 1,264,777 17,431,934

EXPENDITURES
Current:

General Government 3,719,402 - - - 29,381 3,748,783
Housing - - - - 99,241 99,241
Public Safety 1,858,032 - - - - 1,858,032
Public Works 2,346,409 - - - 29,499 2,375,908
Community Promotion 351,745 - - - 8,846 360,591
Parks and Recreation 1,794,711 - - - - 1,794,711
Capital outlay - 311,717 - 354,279 310,203 976,199
Debt service
Principal 155,512 - 624,000 - - 779,512
Interest and fiscal charges 2,447 - 272,474 - - 274,921 Total Expenditures 10,228,258 311,717 896,474 354,279 477,170 12,267,898 Excess (Deficiency) of Revenues over Expenditures (269,339) 5,188,233 (881,355) 338,890 787,607 5,164,036

OTHER FINANCING SOURCES (USES)
Transfers in 1,101,973 - 1,152,990 - 615,415 2,870,378
Transfers out - (3,732,933) - - (1,973) (3,734,906)
Total Other Financing Sources (Uses) 1,101,973 (3,732,933) 1,152,990 - 613,442 (864,528) Net Change in Fund Balances 1,455,300 832,634 271,635 338,890 1,401,049 4,299,508 Fund Balances Beginning 995,286 17,642,036 65,499 196,270 6,707,373 25,606,464 Fund Balances Ending $ 1,827,920 19,097,336 $ 337,134 $ 535,160 $ 8,108,422 $ 29,905,972 $ The accompanying notes are an integral part of these financial statements.

Major Funds
Town of Yountville
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities
For the Year Ended June 30, 2023
Net Change in Fund Balances - Total Governmental Funds $ 4,299,508 Amounts reported for governmental activities in the Statement of Activities and Changes in net position were different because:

Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in net position, the cost of those assets was allocated over their estimated useful lives as depreciation/amortization expense.

Capital outlay 986,176
Depreciation/amortization expense (1,440,603)
Compensated absences not required to be paid with current financial resources are not reported in the governmental funds, but are accrued as noncurrent liabilities in the Government Wide Statement Net Position. The change from prior year accrued compensated absences is reported in the applicable 32,808 program expense.

Certain revenues were not recorded or recorded as unearned revenue in the governmental funds because they did not meet the revenue recognition criteria of availability. However, they were included as revenue in the Government-Wide Statement of Activities under the full accrual basis. (59,166) The difference between the carrying value of refunded debt and the reacquisition price is deferred and amortized over the shorter of the remaining life of the refunded debt or the refunding debt. (14,045) In governmental funds, actual contributions to benefit plans are reported as expenditures in the year incurred. However, in the government-wide statement of activities, only the current year benefit expense as noted in the plans' valuation reports is reported as an expense, as adjusted for deferred inflows and outflows of resources. 219,368
Repayment of long-term debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position. 305,744 Premiums from the issuance of long-term debt are amortized over the life of the bonds in the Statement of Activities and reported as proceeds when issued in governmental funds. 19,451 Certain expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in the fund statements as follows:

Other postemployment benefits 180,628
Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and Changes in net position, but it did not require the use of current financial resources. Therefore, interest expense was not reported as expenditures in governmental funds. The following amount represented the net change in accrued interest from from prior year. 2,000
Change in Net Position of Governmental Activities $ 4,531,869 The accompanying notes are an integral part of these financial statements.

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PROPRIETARY FUND FINANCIAL STATEMENTS
Water Service Fund accounts for the activities associated with providing water services.

Wastewater Fund accounts for the wastewater treatment plant and wastewater pumping stations and collection systems.

Town of Yountville
Statement of Net Position
Proprietary Funds
June 30, 2023
Water Wastewater
Fund Funds Total
ASSETS
Current assets:

Cash and cash equivalents $ 3,114,908 $ 5,103,268 $ 8,218,176 Accounts receivable 168,289 373,574 541,863
Interest receivable 18,983 35,611 54,594
Total current assets 3,302,180 5,512,453 8,814,633
Noncurrent assets:

Capital assets:

Non-depreciable - 726,560 726,560
Depreciable, net 2,897,067 7,658,776 10,555,843
Total capital assets, net 2,897,067 8,385,336 11,282,403 Total noncurrent assets 2,897,067 8,385,336 11,282,403
Total assets $ 13,897,789 6,199,247 $ 20,097,036 $

DEFERRED OUTFLOWS OF RESOURCES
Pension adjustments 177,335 $ $ 431,498 $ 608,833
OPEB adjustments 17,577 42,826 60,403
Total deferred outflows of resources $ 194,912 $ 474,324 $ 669,236

LIABILITIES
Current liabilities:

Accounts payable $ 250,414 $ 141,643 $ 392,057
Interest payable - 7,104 7,104
Compensated absences, due within one year 6,510 8,322 14,832 Loans payable, due within one year - 153,307 153,307
Total current liabilities 256,924 310,376 567,300
Noncurrent liabilities:

Net OPEB liability 5,398 13,150 18,548
Net pension liability 366,314 891,046 1,257,360
Compensated absences, due in more than one year 19,530 24,967 44,497 Loans payable, due in more than one year - 444,288 444,288 Total noncurrent liabilities 391,242 1,373,451 1,764,693 Total liabilities $ 648,166 $ 1,683,827 $ 2,331,993

DEFERRED INFLOWS OF RESOURCES
Pension adjustments $ 21,433 $ 52,080 $ 73,513
OPEB adjustments 74,115 180,592 254,707
Total deferred inflows of resources $ 95,548 $ 232,672 $ 328,220

NET POSITION
Net Investment in capital assets $ 2,897,067 $ 7,787,741 $ 10,684,808 Unrestricted 2,753,378 4,667,873 7,421,251
Total net position $ 5,650,445 $ 12,455,614 $ 18,106,059 The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds
Town of Yountville
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2023
Water Wastewater
Fund Funds Total

OPERATING REVENUES
Charges for services $ 1,758,290 $ 2,434,230 $ 4,192,520 Other 2,304 - 2,304
Total operating revenues 1,760,594 2,434,230 4,194,824

OPERATING EXPENSES
Personnel services 532,444 916,578 1,449,022
Utilities 13,915 183,456 197,371
Purchased water 670,536 - 670,536
Supplies and materials 160,655 727,057 887,712
Insurance and claims 39,323 75,976 115,299
Depreciation 91,460 306,868 398,328
Total operating expenses 1,508,333 2,209,935 3,718,268
Operating income (loss) 252,261 224,295 476,556

NONOPERATING REVENUES(EXPENSES)
Interest expense (9,949) (12,439) (22,388)
Investment earnings 53,146 80,116 133,262
Total nonoperating revenues(expenses) 43,197 67,677 110,874 Income (loss) before operating transfers 295,458 291,972 587,430 Capital contributions - 246,171 246,171
Transfers in 891,593 2,925 894,518
Transfers out - (29,990) (29,990)
Net contributions and transfers 891,593 219,106 1,110,699 Change in net position 1,187,051 511,078 1,698,129
Total net position - beginning 4,463,394 11,944,536 16,407,930 Total net position - ending $ 5,650,445 $ 12,455,614 $ 18,106,059 The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds
Town of Yountville
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Water Wastewater
Fund Funds Total
Cash flows from operating activities:

Receipts from customers 1,745,951 $ 2,388,652 $ 4,134,603 $ Payments to suppliers (994,730) (980,900) (1,975,630)
Payments to employees (568,583) (1,024,481) (1,593,064) Net cash provided (used) by operating activities 182,638 383,271 565,909 Cash flows from noncapital financing activities:

Interfund transactions 891,593 (27,065) 864,528
Net cash provided (used) by noncapital financing activities 891,593 (27,065) 864,528 Cash flows from capital financing activities:

Acquisition of capital assets (608,396) - (608,396)
Proceeds from capital contributions 246,171 - 246,171
Principal payments on long-term debt (150,448) - (150,448) Interest paid on long-term debt (9,949) (14,213) (24,162) Net cash provided (used) by capital financing activities (9,949) (526,886) (536,835) Cash flows from investing activities:

Investment income (loss) 36,818 52,604 89,422
Net cash provided (used) by investing activities 36,818 52,604 89,422 Net increase (decrease) in cash and cash equivalents 1,101,100 (118,076) 983,024 Cash and cash equivalents - beginning 2,013,808 5,221,344 7,235,152 Cash and cash equivalents - ending $ 3,114,908 $ 5,103,268 $ 8,218,176 Reconciliation of operating income to net cash provided (used) by operating activities:

Operating income (loss) $ 252,261 $ 224,295 $ 476,556
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 91,460 306,868 398,328
Change in operating assets and liabilities:

Accounts receivables (14,643) (45,578) (60,221)
Deferred outflows of resources (89,271) (217,518) (306,789) Accounts payable (110,301) 5,589 (104,712)
Compensated absences 1,427 (16,369) (14,942)
Net OPEB liability (10,386) (25,307) (35,693)
Net pension liability 205,710 501,237 706,947
Deferred inflows of resources (143,619) (349,946) (493,565) Net cash provided (used) by operating activities $ 182,638 $ 383,271 $ 565,909 The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds

FIDUCIARY FUND FINANCIAL STATEMENTS
OPEB Trust Funds
Other Postemployment Benefit Trust Fund accounts for contributions made to the Town's established IRC section 115 irrevocable trust fund with PARS (Public Agency Retirement Services) created as part of the Town's OPEB (other postemployment benefits) funding policy.

Custodial Funds
Custodial Funds accounts for assets collected on behalf of the Napa Valley Tourism Improvement District.

Town of Yountville
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Napa Valley
Tourism
Other Improvement
Postemployment District
Benefit Custodial
Trust Fund
ASSETS
Cash and investments - $ 530,756 $
Assessments receivable - 193,573
Interest receivable - 3,206
Investments at fair value:

PARS Mutual Fund 5,698,124 -
Total assets $ 727,535 5,698,124 $

LIABILITIES
Accounts payable - $ 208,902 $
Total liabilities $ 208,902 - $

NET POSITION
Restricted for Napa Valley Tourism Imp. District - $ 518,633 $ Restricted for other postemployment benefits 5,698,124 - Total Net Position $ 518,633 5,698,124 $
The accompanying notes are an integral part of these financial statements.

Town of Yountville
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
Napa Valley
Tourism
Other Improvement
Postemployment District
Benefit Custodial
Trust Fund

ADDITIONS
Assessments $ - $ 1,458,432
Employer contributions 297,365 -
Investment income:

Net increase (decrease) in fair value and investment earnings 425,823 8,947 Investment fees (29,390) -
Net investment earnings (losses) 396,433 8,947
Total additions 693,798 1,467,379

DEDUCTIONS
Payment to Town to reimburse benefits paid 180,319 -
Payments of assessments to other governments - 1,392,897 Other deductions - 14,496
Total deductions 180,319 1,407,393
Change in net position 513,479 59,986
Total net position - beginning 5,184,645 458,647
Total net position - ending $ 5,698,124 $ 518,633
The accompanying notes are an integral part of these financial statements.

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NOTES TO THE BASIC

FINANCIAL STATEMENTS
Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the Town of Yountville, California, (the Town) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies.

The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the Town's accounting policies are described below.

A. Financial Reporting Entity
The Town of Yountville is a municipal corporation governed by an elected mayor and four-member council. The Town provides customary municipal services including general governmental activities, law enforcement, fire and emergency services, streets, maintenance, parks and recreation activities, water and wastewater utility services. Public safety police and fire services are provided to the Town through contractual arrangements with the County of Napa. Accordingly, the Town does not employ resident public safety personnel. The Town and State of California, Department of Veterans Affairs, have an agreement, which provides for the operation of a joint wastewater treatment facility. Under the agreement, the Town purchased the State’s then existing treatment plant and land for a price equal to 50 percent of its wastewater treatment plant and facility. Under the agreement, the Town’s plant is to provide capaTown in the treatment facility for a maximum daily flow capaTown not to exceed one million gallons per day originating from the Veterans Home of California. Under the agreement, the State of California is to pay an annual service charge to the Town for a pro rata share of the cost of operating and maintaining the Town’s treatment facility. The State of California is also to pay annually to the Town capital replacement charges, which are to be matched in an equal amount by the Town.

The Town and Veterans Home of California also have a water purchase agreement whereby the Town purchases water from the Veterans Home Rector Reservoir for use in the Town’s municipal water enterprise. The Town’s obligations to pay for purchased water are allowed to be offset against the obligations of the State of California to the Town for wastewater treatment services purchased by the State.

As required by GAAP, these basic financial statements present the Town and its component units, entities for which the Town is considered to be financially accountable. The Town Council acts as the governing board. In addition, the Town staff performs all administrative and accounting functions for these entities and these entities provide their services entirely to the Town. Blended component units, although legally separate entities are, in substance, part of the Town's operations and data from these units are combined with data of the Town. Discretely presented component units, on the other hand, are reported in a separate column in the government-wide financial statements to emphasize their legal separateness from the Town. Each blended component unit has a June 30 year-end. The following entities are reported as blended component units:

Yountville Financing Authority
The Yountville Financing Authority was established solely to assist the Town in the issuance of certain revenue bonds. It is controlled by and financially dependent on the Town; its financial activities were accounted for in the Debt Service Fund. The Town Council members serve as the Board of the Yountville Financing Authority.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Yountville Housing Authority
The Yountville Housing Authority was established to promote and assist in the development of affordable housing. It is controlled by and financially dependent on the Town; its financial activities were accounted for in the Housing Opportunity Fund. The Town Council members serve as the Board of the Yountville Housing Authority.

The Town of Yountville annually contracts with the City of Napa for Affordable Housing services. The Town's Housing Programs, which are required with the Town's General Plan Housing Element by the State of California, require subsidy from the General Fund to support mandatory and necessary operations.

Yountville Parking Authority
The Yountville Parking Authority was formed as a joint exercise powers agency (JPA) organized under the laws of the State of California. The Parking Authority is authorized to own, hold, and improve real or personal property and to purchase, lease, obtain an option upon, acquire by gift, grant, bequest, devise, or otherwise, any real or personal property or any interest in property and sell, lease, exchange, transfer, assign, pledge, or dispose of any real or personal property or any interest or right for the purpose of providing and maintaining parking facilities pursuant to the provisions of the California Streets and Highways Code. The Town Council serves as the Board of the Parking Authority. It is controlled by and financially dependent on the Town; its financial activities were accounted for in the Debt Service Fund.

Town of Yountville Community Foundation
The Town of Yountville Community Foundation was formed by reorganization of the Yountville School Foundation (Community Foundation). The Community Foundation provides cultural arts programs, music, visual, and performing arts programs, and other services to the Town of Yountville. The Town provides accounting services to the Foundation. The Town controls the appointment of members of the Community Foundation’s Board. The Community Foundation provides services entirely for the benefit of the Town.

Separate financial statements are not issued by the Town for these component units.

The Town applies all applicable GASB pronouncements for certain accounting and financial reporting guidance. In December of 2010, GASB issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.

GASB 62 incorporates pronouncements issued on or before November 30, 1989 into GASB authoritative literature. In June of 2015, GASB issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB 76 supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB 76 also amends GASB 62 and AICPA Pronouncements paragraphs 64, 74, and 82. The GAAP hierarchy sets forth what constitutes GAAP for all state and local governmental entities. It establishes the order of priority of pronouncements and other sources of accounting and financial reporting guidance that a governmental entity should apply. The sources of authoritative GAAP are categorized in descending order of authority as follows:
a. Officially established accounting principles—Governmental Accounting Standards Board (GASB) Statements (Category A)
b. GASB Technical Bulletins; GASB Implementation Guides; and literature of the AICPA cleared by the GASB (Category B).

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
If the accounting treatment for a transaction or other event is not specified by a pronouncement in Category A, a governmental entity should consider whether the accounting treatment is specified by a source in Category B.

Basis of Accounting and Measurement Focus
The accounts of the Town are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions, or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The Town's government-wide financial statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the Town. Fiduciary activities of the Town are not included in these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the Town's assets, deferred outflows of resources, liabilities, deferred inflows of resources, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment. Certain types of transactions are reported as program revenues for the Town in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

Certain eliminations have been made as prescribed by GASB Statement No. 34 in-regards-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 fund transactions have been eliminated; however, those Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Transfers in/Transfers out
The Town applies all applicable GASB Pronouncements including all Interpretations currently in effect.

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The Town has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to 90 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the Town, are property taxes, taxpayer-assessed tax revenues (sales taxes, transient occupancy taxes, etc.), licenses, grant revenues and earnings on investments. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the combined balance sheet and revenue is recognized.

The Town reports the following funds as major funds:

General Fund
The General Fund is the general operating fund of the Town. It is used for all financial resources except those required to be accounted for in another fund.

Capital Projects Fund
The Capital Projects Fund accounts for the resources accumulated for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary funds. Significant maintenance projects and major purchases of equipment are also accounted for in the capital projects fund.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Debt Service Fund
The Debt Service Fund is used to accumulate resources for repayment of the revenue bonds and capital lease arrangements.

Measure T Fund
The Measure T Fund is used to account for revenue received from the Measure T Ordinance (Napa Countywide Road Maintenance Act) that collects a half cent sales tax going toward projects that improve streets, sidewalks, and related street infrastructure improvements.

Additionally, the Town reports the following nonmajor fund types of governmental funds:

Special Revenue Funds
Special revenue funds account for and report the proceeds of specific revenue sources that are restricted, committed or assigned to specific purposes other than debt service or capital projects.

Capital Project Funds
Capital project funds account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets in governmental funds.

Proprietary Funds
In the fund financial statements, proprietary funds are presented using the accrual basis of accounting.

Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the “economic resources measurement focus”. This means all assets, deferred outflows of resources, liabilities (whether current or noncurrent) and deferred inflows of resources associated with their activities are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal value. Non-operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements.

The Town has the following enterprise funds that have been reported as major:

Water Fund
The Water Fund accounts for the activities associated with providing water services.

Wastewater Fund
The Wastewater Service Fund accounts for the wastewater treatment plant and wastewater pumping stations and collection systems.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. OPEB Trust Funds are used to report resources that are required to be Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
held in trust by the Town for the members and beneficiaries of defined benefit OPEB plans and defined contribution OPEB plans. Custodial funds are used by the Town to report activity relating to amounts collected and distributed by the Town for outside parties based on agreements. Fiduciary funds are accounted for using the accrual basis of accounting using the economic resources measurement focus.

The Town reports the following fiduciary funds:

Other Postemployment Benefit Trust Fund
The Other Postemployment Benefit Trust Fund accounts for assets held in trust for employee health benefits.

Tourism Improvement District Custodial Fund
The Tourism Improvement District Agency Fund accounts for assets held by the Town on behalf of the Napa Valley Tourism Improvement District.

B. Cash, Cash Equivalents and Investments
The Town pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms.

The Town's cash and cash equivalents are considered to be cash on hand, demand deposits, and shortterm investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. For the purpose of the statement of cash flows, the Town considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the Town as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The Town also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.

Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas: Interest Rate Risk, Overall Credit Risk, Custodial Credit Risk, Concentrations of Credit Risk, and Foreign Currency Risk.

Other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. The Town participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates.

Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining this amount, three valuation techniques are available:
 Market approach - This approach uses prices generated for identical or similar assets or liabilities.

The most common example is an investment in a public security traded in an active exchange such as the NYSE.
 Cost approach - This technique determines the amount required to replace the current asset. This approach may be ideal for valuing donations of capital assets or historical treasures.  Income approach - This approach converts future amounts (such as cash flows) into a current discounted amount.

Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs have been maximized in fair value measures, and unobservable inputs have been minimized.

C. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt, for acquisition and construction of capital projects, and to meet bond indenture debt reserve requirements. Cash and investments are also restricted for deposits held for others within the enterprise funds. Amounts held in Trust for pension stabilization are also reported as restricted cash and investments.

D. Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources. The Town considers all trade and property tax receivables to be fully collectible and therefore no allowance for uncollectible accounts is considered necessary.

E. Receivables
Billed, but unpaid, services provided to individuals or non-governmental entities are recorded as accounts receivable. Revenues earned but not collected by year-end are accrued. No allowance for uncollectible accounts receivable has been provided as management has determined that uncollectible accounts have historically been immaterial and the direct write-off method does not result in a material difference from the allowance method.

F. Loans Receivable
Under the Town’s housing opportunity program, loans are made to qualified individuals and businesses within prescribed project areas for the purpose of housing acquisition, housing rehabilitation and/or economic development. Repayments of the outstanding loans are classified as a revenue source in the applicable funds. The portion of loans receivable deemed to be unavailable have been offset by Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Unavailable Revenues in the accompanying financial statements, which is a part of deferred inflows of resources.

G. Leases Receivable
The Town’s lease receivable is measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable plus incentive payments received. The deferred inflow of resources is amortized on a straightline basis over the term of the lease. If there is no stated rate in the lease contract (or if the stated rate is not the rate the Town charges the lessee) and the implicit rate cannot be determined, the Town uses its own estimated incremental borrowing rate as the discount rate to measure lease receivables. The Town’s estimated incremental borrowing rate is based on its actual incremental borrowing rate for the most recent debt issuance.

H. Capital Assets
Capital assets used in governmental fund operations, including infrastructure assets (i.e. roads, curbs, gutters, bridges, sidewalks, drainage systems, lighting systems, and other assets) are reflected in the government-wide financial statements, along with related depreciation. Capital assets are defined by the Town as assets with an initial individual cost of more than $10,000 ($25,000 for infrastructure type assets and $50,000 for intangible assets) and an estimated life in excess of 1 year. Purchased capital assets are valued at historical cost or estimated historical cost. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are valued at acquisition value on the date donated. Capital assets acquired under financed or purchase agreements are capitalized when the Town accumulates an ownership equity in the assets acquired.

The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. Depreciation is provided using the straight-line method whereby the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:

Buildings 30 Years
Building improvements 15-20 Years
Public domain infrastructure 50 Years
System infrastructure 20-100 Years
Vehicles 7 Years
Office equipment 3-7 Years
Automobiles and Trucks 3-5 Years
Intangible right-to-use lease assets are amortized over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the Town has determined is reasonably certain of being exercised, then the lease asset is amortized over the useful life of the underlying asset.

Intangible right-to-use subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying information technology asset.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period.

I. Deferred Outflows/Deferred Inflows
In addition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

J. Interest Payable
In the government-wide and proprietary fund financial statements, interest payable of long-term debt is recognized as an incurred liability for governmental fund types. The Town has not allocated the interest on long-term debt to departments. In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. Interest on long-term debt is recorded in the fund statements when payment is made.

K. Compensated Absences
It is the Town’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the Town does not have a policy to pay any amounts when employees separate from service with the Town. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements or the Town believes it will have to use current resources to liquidate such obligations. Compensated absences in the governmental activities are liquidated primarily by using general fund resources.

L. Long-Term Liabilities
In the government-wide financial statements and proprietary fund statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental or business-type activities.

Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs are expensed in year incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
M. Subscription Based Information Technology Arrangements The Town recognizes subscription liabilities with an initial, individual value of $50,000 or more. The Town uses its estimated incremental borrowing rate to measure subscription liabilities unless it can readily determine the interest rate in the arrangement. The Town's estimated incremental borrowing rate is calculated as described in section G, Leases Receivable.

N. Benefit Plans
Pension Expense
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 Town’s California Public Employees’ Retirement System (CalPERS) plans (the 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 the benefit terms. Investments are reported at fair value.

Other Postemployment Benefit (OPEB) Expense
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense information about the fiduciary net position of the Town’s Retiree Benefits Plan (the OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the OPEB Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms.

Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date January 1, 2022
Measurement Date June 30, 2023
Measurement Period June 30, 2022 to June 30, 2023
O. Fund Balances
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and Governmental Fund Type Definitions, the Town classifies governmental fund balances as follows:

Nonspendable
Nonspendable fund balance represents balances set aside to indicate items that do not represent available, 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, leases receivable in excess of deferred inflows of resources 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.

Restricted
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 specific purpose.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.

Committed
The Town Council, as the Town’s highest level of decision making authority, may commit fund balance for specific purposes pursuant to the constraints imposed by formal actions taken, such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the Town Council removes or changes the specified use through the same type of formal action taken to establish the commitment. Town Council action to commit fund balance needs to occur within the fiscal reporting period; however the specific amounts can be determined subsequently. Encumbrances and nonspendable amounts subject to Council commitments are included along with spendable resources.  Emergency Reserve Fund
The Town’s General Fund balance committed for emergency reserves is established at a minimum of 20% of General Fund operating expenditures. The calculation and review of the 20% minimum will be part of the proposed budget each fiscal year. Use of the General Fund Emergency Reserve would be appropriate if the Town declared a state or federal emergency or declaration of a local emergency as defined in the Yountville Municipal Code Section 2.52.020:

2.52.020 Emergency defined:

As used in this chapter, “emergency” means the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within the Town caused by such conditions as air pollution, fire, flood, storm, epidemic, riot or earthquake, or other conditions, including conditions resulting from a labor controversy, which conditions are or are likely to be beyond the control of the services, personnel, equipment and facilities of the Town, requiring the combined forces of other political subdivisions to combat. (Ord. 225, 1991; Ord. 294-99).

Assigned
Assigned fund balances are amounts constrained by the Town’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the Town Council or its designee and may be changed at the discretion of the Town Council or its designee. This category includes encumbrances; nonspendable amounts, when it is the Town’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects, and Debt Service Funds, which have not been restricted or committed. The Town Council has not delegated the authority to make assignments of fund balance, and assign fund balance by majority vote.

Unassigned
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.

Flow Assumption / Spending Order Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the Town considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the Town considers amounts to be spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Town Council has directed otherwise.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
P. Net Position
In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets
This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that are attributed to the acquisition, construction, or improvement of the assets. In addition, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also are included in the net investment in capital assets component of net position
Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position
This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position." The detail of amounts reported for each of the above defined net position categories is reported in the government-wide Statement of Net Position.

Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the Town's policy is to apply restricted net position first.

Q. Interfund Transactions
Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers.

R. Property Taxes and Special Assessments
Property taxes are levied as of January 1 on property values assessed as of the same date. State statutes provide that the property tax rate be limited generally to one percent of market value, be levied by only the County, and be shared by applicable jurisdictions. The County of Napa collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to voter-approved debt.

Property taxes are due on November 1 and March 1, and become delinquent on December 10 and April

10. The Town receives property taxes pursuant to an arrangement with the County known as the “Teeter Plan”. Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the Town. The Town recognizes property tax revenues in the fiscal year in which they are due to the Town.

S. Budgetary Information
The Town adopts a budget annually for all governmental fund types. This budget is effective July 1 for the ensuing fiscal year. From the effective date of the budget, which is adopted at the fund level, the amounts stated therein as proposed expenditures become appropriations to the various Town departments.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
The legal level of budgetary control is the fund level. The Town Council may amend the budget by resolution during the fiscal year. The Town Manager has the authority to make adjustments to the operating budget between departments within the same fund. Transfers of operating budgets between funds, use of unappropriated fund balances, and significant changes in capital improvement project budgets require the approval of the Town Council. The Town’s basis of budgeting is the same as GAAP.

T. Encumbrances
Under encumbrance accounting, purchase orders, contract and other commitments for expenditures are recorded in order to commit that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all funds. All appropriations and encumbrances lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are re-appropriated and become part of the subsequent year’s budget pursuant to state regulations.

U. Unearned Revenue
Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied.

Grants and entitlements received before eligibility requirements are met are recorded as deferred inflows from unearned revenue. In the governmental fund financial statements, receivables associated with nonexchange transactions that will not be collected within the availability period have been recorded as deferred inflows from unavailable revenue.

V. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

W. Implementation of New Accounting Pronouncements
During the year, the Town implemented GASB Statement No. 96, Subscription-based Information Technology Arrangements. GASB Statement No. 96 is an accounting pronouncement issued by the Governmental Accounting Standards Board (GASB) that provides guidance on how the costs and investments for subscription-based information technology arrangements (SBITAs) are accounted for and disclosed by governmental entities. This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. As a result, the Town recorded intangible right of use subscription assets of $473,768 and corresponding subscription lease liabilities of $473,768. The details of the related assets and liabilities can be found in Notes 6 and 7.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Upcoming New Accounting Pronouncements
The Town is currently analyzing its accounting practices to determine the potential impact on the financial statements of the following recent GASB Statements:

GASB Statement No. 100, Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62, effective fiscal 2024.

This statement enhances accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. GASB 100 also requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature. And, GASB 100 addresses how information that is affected by a change in accounting principle or error correction should be presented in required supplementary information (RSI) and supplementary information (SI).

GASB Statement No. 101, Compensated Absences, effective fiscal 2025.

Updates the recognition and measurement guidance for compensated absences by:

1. Aligning the recognition and measurement guidance under a unified model

2. Amending certain previously required disclosures

3. Amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability

4. Supersedes GASB 16
NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2023, cash and investments were reported in the financial statements as follows:

Governmental
Activities
Business-Type
Activities Total
Cash and investments $ 23,268,923 $ 8,218,176 $ 530,756 $ 32,017,855 Restricted cash and investments 3,342,582 - - 3,342,582 PARS Pooled Investment funds - - 5,698,124 5,698,124
Total cash and investments $ 26,611,505 $ 8,218,176 $ 6,228,880 $ 41,058,561 Government Wide
Statement of Net Position Fiduciary Funds
Statement of Net
Position
Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Cash and investments consisted of the following as of June 30, 2023:

Deposits:

Cash on hand $ 425
Deposits with financial institutions 5,246,367
Total Deposits 5,246,792
Investments:

Local Agency Investment Fund 26,771,063
Total City Treasury 32,017,855
Restricted cash and investments:

Cash with fiscal agent 3,342,582
PARS Pooled Investment funds 5,698,124
Total cash and investments $ 41,058,561
A. Cash Deposits
The California Government Code requires California banks and savings and loan associations to secure the Town'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, and places the Town ahead of general creditors of the institution.

The fair value of pledged securities must equal at least 110 percent of the Town's cash deposits.

California law also allows institutions to secure Town deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the Town's total cash deposits. The Town has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC).

The bank balances before reconciling items totaled $6,069,900 at June 30, 2023 and were different from carrying amounts due to deposits in transit and outstanding checks. The amount uninsured was $5,819,900, which was collateralized by securities held by pledging financial institutions. The Town 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 earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances.

Interest income from cash and investments with fiscal agents is credited directly to the related fund.

B. Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques with three levels:
 Level 1 inputs are quoted prices in active markets for identical assets or liabilities.  Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable
 Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.

The Town’s investments were not subject to levelling.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
C. Investment Policies
Town Investment Policy
Under the provisions of the Town's investment policy, and in accordance with California Government Code, the following investments are authorized:

Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
One Issuer
Securities issued by the U.S. Treasury n/a No limit No limit U.S. Agency Securities and Instrumentalities n/a No limit No limit Local Agency Investment Fund n/a No limit No limit
Insured Savings Accounts n/a No limit No limit
California Asset Management Program (CAM n/a No limit No limit Banker's acceptances 180 Days 40% 5% of portfolio
Time Deposits n/a 25% 5% of portfolio
Money Market/Mutual Funds n/a 15% 5% of portfolio
Prime Commercial Paper 270 Days 25% 5% of portfolio
Medium-term Corporate Notes 5 Years 30% 5% of portfolio Negotiable Certificates of Deposit n/a 30% 5% of portfolio Authorized Investment Type
Investment income in all funds included investment income of $1,181,844.

The Town’s portfolio value fluctuates in an inverse relationship to any change in interest rate.

Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. Generally the Town’s practice is to buy and hold investments until maturity dates. Consequently, the Town’s investments are carried at fair value.

D. External Investment Pool
The Town's investments with LAIF at June 30, 2023, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes
These 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 asset-backed securities are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables.

LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The approved investments policy is listed on the LAIF website, located at http://www.treasurer.ca.gov/pmia-laif/.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
E. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the term of an investment’s maturity, the greater the sensitivity to changes in market interest rates. It is the Town’s practice to mitigate interest rate risk by limiting the average maturity of the Town’s portfolio to not to exceed three years.

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the Town’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the Town’s exposure to credit risks. As of June 30, 2023, the Town’s investments were in compliance with the ratings required by the Town’s investment policy and Government Code.

Concentrations of Credit Risk
The investment policy of the Town contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2023, the Town had no investments in any one issuer (other than U.S. Treasury securities, mutual funds and external investment pools) that represented 5% or more of the total Town investments.

Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Town will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The California Government Code and the Town's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

As of June 30, 2023, the Town’s investments had the following maturities:
12 Months or Less Fair Value
Local Agency Investment Funds $ 26,771,063 $ 26,771,063 Total Investments $ 26,771,063 $ 26,771,063
Investment Type
Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
F. Investments Held in Trust for Other Postemployment Benefits The Town established an irrevocable Section 115 OPEB Trust with Public Agency Retirement Services (PARS). As of June 30, 2023, the trust had a balance of $5,698,124. PARS’ policy for allocation of invested assets was as follows:

Asset Class
Percentage of
Portfolio
Fixed Income 35.00%
Public Equity 60.00%
Liquidity 5.00%
Total 100.00%
At June 30, 2023, PARS held no investments in any one organization that represented 5% of more of fiduciary net position.

Rate of return
For the year ended June 30, 2023, the annual money-weighted rate of return on investments, net of investment expenses, was 5%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

NOTE 3 - LEASES RECEIVABLE
In May of 2020, the Town entered into a lease with Restoration Hardware (the Company). Under the lease, the Company pays the Town $66,986 per year, plus annual CPI adjustments, for fifteen years to rent land for a parking lot. After cumulative CPI adjustments, the payment in the final year of the lease may be as much as $101,322. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 3%, which is the stated rate in the agreement.

In fiscal year 2023, the Town recognized $67,957 of lease revenue and $26,596 of interest revenue under the lease. The net present value of the lease receivable as of June 30, 2023 was $862,344 which was offset by a deferred outflow of resources of $815,484, net of amortization totaling $67,957.

In July of 2021, the Town entered into a lease with the United States Postal Office (USPS). Under the lease, USPS pays the Town $180,000 per year for five years with an option to extend the lease for an additional five years at $194,400 per year. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 3.127%, which is the Town’s incremental borrowing rate for this agreement. The lease commenced on July 1, 2022.

In fiscal year 2023, the Town recognized $160,098 of lease revenue and $48,184 of interest revenue under the lease. The net present value of the lease receivable as of June 30, 2023 was $1,469,167 which was offset by a deferred outflow of resources of $1,440,885, net of amortization totaling $160,098.

NOTE 4 - LOANS RECEIVABLE
The $1,844,131 in loans receivable held by the Town as of June 30, 2023, consists primarily of a $1,100,000 note related to an affordable housing project developed within the Town. The note bears no Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
interest and matures in 2066. The note is secured by a deed of trust and assignment of rents, and is subordinate to a first and second deed of trust from other parties having provided financing for the project. Housing notes totaling $406,525 consists of three notes with a principal balance of $203,500 plus earned interest of $157,425, all deferred and payable at maturity or upon transfer or sale of the underlying property, and one note with a principal balance of $45,600 due July 1, 2042, which is payable in monthly installments with zero interest. The remaining notes totaling $337,606, consists of two Measure S affordable housing loans with original principal issuances of $340,635. One of the Measure S loans bears interest at 2% per annum and the other bears no interest.

NOTE 5 - INTERFUND TRANSACTIONS
Inter-fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-term loans expected to be repaid in the next fiscal year. Advances to or from other funds are long-term loans between funds that are to be repaid in their entirety over several years. As of June 30, 2023, inter-fund receivables and payables consisted of the following:

Due from Due to
Fund Other Funds Other Funds
General Fund $ - $ 1,215
Nonmajor Funds 1,215 -
Total Due from/to $ 1,215 $ 1,215
During the year ended June 30, 2021, the Town loaned $1.1 million from the Drought Water Reserve Fund to the Water Capital Improvement Fund at 1% interest. The loan was fully paid during fiscal year 2022-23.

Transfers In/Out
With Council approval resources may be transferred from one fund to another. Transfers from the General Fund to the Debt Service Fund were to regular debt service activity of the Town. Transfers from the General Fund to other governmental funds were to provide funding to repair and replacement funds and to provide funding for Town programs. Transfers made from the Wastewater Enterprise Fund to the Debt Service Funds were to provide for debt service requirements.

The following summarizes transfers between funds during the fiscal year ended June 30, 2023:

Fund Transfer in Transfer out
General Fund $ - $ 3,732,933
Capital Projects Fund 1,101,973 -
Debt Service Fund 1,152,990 -
Nonmajor Funds 615,415 1,973
Water Fund 891,593 -
Wastewater Fund 2,925 29,990
Total transfers $ 3,764,896 $ 3,764,896
Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
NOTE 6 - CAPITAL ASSETS
Capital assets for governmental activities consisted of the following as of June 30, 2023:

Balance Balance
Governmental Activities July 1, 2022 Additions Deletions June 30, 2023 Non-depreciable:

Land $ 1,725,152 $ - $ - $ 1,725,152
Construction in progress 71,045 364,078 (382,402) 52,721 Total non-depreciable 1,796,197 364,078 (382,402) 1,777,873 Depreciable/amortizable:

Intangible assets:

Subscription assets - 473,768 - 473,768
Buildings 19,827,271 - - 19,827,271
Improvements other than building 4,439,620 - - 4,439,620 Infrastructure 24,548,779 382,403 - 24,931,182
Machinery and equipment 1,772,757 148,330 - 1,921,087
Total depreciable/amortizable 50,588,427 1,004,501 - 51,592,928 Less accumulated depreciation/amortization for:

Intangible assets:

Subscription assets - (143,285) - (143,285)
Buildings (6,060,798) (437,379) - (6,498,177)
Improvements other than building (1,782,395) (114,990) - (1,897,385) Infrastructure (6,417,665) (642,068) - (7,059,733)
Machinery and equipment (1,104,972) (102,881) - (1,207,853) Total accumulated dep/amort (15,365,830) (1,440,603) - (16,806,433) Total dep/amort capital assets, net 35,222,597 (436,102) - 34,786,495 Total governmental capital assets $ 37,018,794 $ (72,024) $ (382,402) $ 36,564,368 Depreciation/amortization expense for governmental activities was charged to the following programs during the year:

General Government $ 212,567
Public Works 931,374
Parks and Recreation 296,662
Total depreciation expense $ 1,440,603
Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Capital assets for business-type activities consisted of the following as of June 30, 2023:

Balance Balance
Business Type Activities July 1, 2022 Additions Deletions June 30, 2023 Non Depreciable
Land $ 5,091 $ - $ - $ 5,091
Construction in progress 113,071 608,398 - 721,469
Total Non-Depreciable 118,162 608,398 - 726,560
Depreciable:

Buildings 40,001 - - 40,001
Systems 18,467,037 - - 18,467,037
Machinery and rquipment 1,051,036 - - 1,051,036
Total Depreciable 19,558,074 - - 19,558,074
Less Accumulated Depreciation
Buildings (28,010) (1,333) - (29,343)
Systems (7,703,851) (369,441) - (8,073,292)
Machinery and equipment (872,041) (27,555) - (899,596)
Total accumulated depreciation (8,603,902) (398,329) - (9,002,231) Total depreciable capital assets, net 10,954,172 (398,329) - 10,555,843 Total business type capital assets $ 11,072,334 $ 210,069 $ - $ 11,282,403 NOTE 7 - NONCURRENT LIABILITIES
The Town's noncurrent liabilities consisted of the following as of June 30, 2023:

Due
Balance Balance Within One
Description July 01, 2022 Additions Deletions June 30, 2023 Year Lease Revenue Bonds:
2017 Lease Revenue Refunding Bonds $ 7,440,000 $ - $ 300,000 $ 7,140,000 $ 315,000 Unamortized Premiums 350,115 - 19,451 330,664 -
Subtotal Lease Revenue Bonds 7,790,115 - 319,451 7,470,664 315,000 2020 Financing Lease - Direct Borrowing 1,675,000 - 324,000 1,351,000 330,000 Subscription Liabilities - 473,768 145,331 328,437 140,250 CEC Loan - Direct Borrowing 10,181 - 10,181 - -
Net Pension Liability 1,712,933 3,063,902 873,525 3,903,310 - Net OPEB Liability 168,056 1,226,555 1,337,146 57,465 - Compensated Absences 218,003 316,951 349,759 185,195 46,299 Total Noncurrent Liabilities $ 11,574,288 $ 5,081,176 $ 3,359,393 $ 13,296,071 $ 831,549 Due
Balance Balance Within One
Business-Type Activities July 01, 2022 Additions Deletions June 30, 2023 Year Direct Borrowings:

State Revolving Loan $ 748,043 $ - $ 150,448 $ 597,595 $ 153,307 Net Pension Liability 550,413 986,964 280,017 1,257,360 - Net OPEB Liability 54,241 395,872 431,565 18,548 -
Compensated Absences 74,271 91,896 106,838 59,329 14,832 Total Noncurrent Liabilities $ 1,426,968 $ 1,474,732 $ 968,868 $ 1,932,832 $ 168,139 Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
2017 Lease Revenue Refunding Bonds
The Yountville Finance Authority issued $8,500,000 of 2017 Lease Revenue Refunding Bonds, entered into a Site Lease with the Town, and a Facilities Lease with the Town wherein the Town essentially agreed to make all principal and interest payments. The lease obligation payable and lease receivable between the Town and the Authority have been eliminated in the accompanying financial statements.

The bonds consist of $8,500,000 in serial bonds and bear interest at 2 to 5 percent that is payable June 1st and December 1st through 2039. The bonds are subject to optional early redemption without premium at the option of the Town. The Town has not pledged any specific revenues for repayment of the bonds. The Town has agreed to include the lease payments due to the Authority (and assigned by the Authority to the bond trustee) in its annual budgets and to make annual appropriations. The bond refunding resulted in an accounting deferred loss on refunding of $308,986, and an economic gain of $2,100,000 through final maturity in 2039.

The Town accounts for the bonds in its governmental activities and uses general fund resources to fund the principal and interest payments. Future debt service payments are as follows:

Fiscal Year Pricipal Interest Debt Service
2024 $ 315,000 $ 227,644 $ 542,644
2025 330,000 211,519 541,519
2026 350,000 194,519 544,519
2027 360,000 182,169 542,169
2028 365,000 174,691 539,691
2029-2033 2,020,000 680,825 2,700,825
2034-2038 2,355,000 349,041 2,704,041
2039-2042 1,045,000 32,889 1,077,889
Total $ 7,140,000 $ 2,053,297 $ 9,193,297
2020 Financing Lease
On June 1, 2020 the Town entered into a $2,303,000 lease agreement with the Yountville Finance Authority which was assigned to Westamerica Bank. The applicable interest rate is 1.66% per annum.

The agreement is a Site Lease and a Facilities Lease wherein the Town essentially agreed to make all principal and interest payments. The lease obligation payable and lease receivable between the Town and the Authority have been eliminated in the accompanying financial statements. The proceeds of the lease were used to defease the 2013 Lease Revenue Bonds resulting a deferred loss on refunding of $1,219 and an economic gain of $50,517 through the final maturity in 2027.

The Town accounts for the lease in its governmental activities and uses general fund resources to fund the principal and interest payments. Future debt service payments are as follows:

Fiscal Year Pricipal Interest Debt Service
2024 $ 330,000 $ 22,427 $ 352,427
2025 336,000 16,949 352,949
2026 337,000 11,371 348,371
2027 348,000 5,776 353,776
Total $ 1,351,000 $ 56,523 $ 1,407,523
Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Subscription-Based Information Technology Agreements
The Town has entered into certain subscription-based information technology arrangements that convey control of the right to use another entity's nonfinancial asset for a period of time in an exchange or exchange-like transaction. These are generally for software service contracts. These contracts, at times, include variable payments, residual value guarantees, or termination penalties that are not known or certain to be exercised at the time of the liability valuation. These are recognized as expenses in the period that they occur. There were no residual guarantee or termination payments expensed for the fiscal year ended June 30, 2023. Annual interest rates on the SBITAs range from .476% to 2.536%. The following schedule details minimum payments to maturity for subscription arrangements greater than $50,000:

Fiscal Year Pricipal Interest Total
2024 $ 140,250 $ 7,375 $ 147,625
2025 91,625 4,500 96,125
2026 47,676 2,449 50,125
2027 48,886 1,240 50,126
Totals $ 328,437 $ 15,564 $ 344,001
See Note 6 for the total amount of subscription assets and the related accumulated amortization.

CEC Loan
In fiscal year 2011, the Town entered into a loan arrangement with the California Energy Commission (CEC) for the purpose of obtaining financing for energy conservation improvements to Town facilities.

The original loan amount was $200,000, bears interest at 3 percent per annum, and matures December 22, 2022. The loan is payable in semi-annual installments of $10,334 due each June 22 and December 22.

This loan was fully repaid in fiscal year 2022-23.

Clean Water State Revolving Fund Loan
In fiscal 2014, the Town obtained a $3,465,362 State Revolving Fund Loan for the purpose of financing the Yountville Water Recycling Expansion Project. The proceeds are drawn down as costs are incurred and the Town has received $2,725,340 in loan proceeds. The loan and projects are accounted for in the Town’s wastewater enterprise fund. The loan has a term of 20 years, is repayable in annual installments, and bears interest at 1.9 percent. In November of 2019, the Town prepaid $1,091,109, reducing the loan terms and saving interest of $259,000. The loan matures in November 2026. The annual debt service requirements are as follows:

Fiscal Year Pricipal Interest Debt Service
2024 $ 153,307 $ 11,354 $ 164,661
2025 156,219 8,442 164,661
2026 159,188 5,473 164,661
2027 128,882 2,449 131,331
Total $ 597,596 $ 27,718 $ 625,314
Compensated Absences
Compensated absences comprise of unpaid vacation and are accrued as earned. The Town’s liability for compensated absences is recorded in various governmental funds only if they have matured. The liability for compensated absences is determined annually. The long-term portion of governmental activities compensated absences is liquidated primarily by the general fund.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Net Pension Liability and Net OPEB Liability
See Note 9 for pensions and Note 10 for other postemployment benefits.

NOTE 8 - RISK MANAGEMENT
The Town 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 Town obtains insurance coverages.

The Town is a member of the Public Agency Risk Sharing Authority of California, a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers compensation, and property claims. Under the program, the Town has a $10,000 retention limit similar to a deductible with the Authority being responsible for losses in excess of the Town’s self-insured retention. The Authority carries excess commercial liability policy of $34 million in excess of its $1 million retention limit to cover losses up to $34 million through affiliated risk management authorities. The Authority also provides one billion dollars aggregate per occurrence property coverage to its members with such coverage provided by purchased insurance. The Authority covers workers compensation claims up to its self-insurance limit of $500,000. The Local Agency Workers Compensation Excess Pool provides excess coverage for an additional $4.5 million.

The Authority purchases commercial coverage for an additional $45 million. The Town pays an annual premium to the Authority; the Town may share in any surplus revenues or may be required to pay additional assessments based upon the Authority’s operating results. The Town has a $10,000 deductible for workers compensation insurance coverage, all other losses are paid by the Authority on a first-dollar basis. The Town paid no material uninsured losses during the 2022-2023 fiscal year. Financial statements of the Risk Sharing Authority may be obtained from their administrative offices located at 1525 Response Road, Suite One, Sacramento, California 95815.

Liabilities of the Town are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards.

Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors.

The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate. Settlements have not exceeded coverages for each of the past three fiscal years.

There were no material unpaid and uninsured claims outstanding at the beginning or end of the last two fiscal years.

NOTE 9 - RETIREMENT PLANS
General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency CostSharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.

Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The Town sponsors three miscellaneous rate plans. Benefit provisions under the Plan are established by State statute and Town resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost 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. Members with five years of total service are eligible to retire at age 55 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employee’s Retirement Law. The general fund typically is used to liquidate pension liabilities for governmental funds.

The Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:

Tier 1 Tier 2 PEPRA
Benefit formula 2.7% @ 55 2% @ 55 2% @ 62
Benefit vesting schedule 5 Years 5 Years 5 Years
Benefit payments Monthly for Life Monthly for Life Monthly for Life Retirement age 55 55 62
Monthly benefits as a
% of eligible compensation 2.70% 2.00% 2.00%
Required employee contribution rates 8.00% 7.00% 6.75%
Required employer contribution rates 14.03% 10.87% 7.47% Miscellaneous
Employees Covered
At June 30, 2023, the following employees were covered by the benefit terms for the Plans:

Miscellaneous
Active 32
Transferred 11
Separated 9
Retired 39
Total 91
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rates are the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The Town is required to contribute Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2023, the Town’s contributions were $757,381.

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2023, the Town reported a net pension liability for its proportionate share of the net pension liability of the Plan of $5,160,670.

The Town’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans are measured as of June 30, 2022, and the total pension liability for the Plans used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The Town’s proportion of the net pension liability was based on a projection of the Town’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The Town’s proportionate share of the net pension liability for the Plans as of June 30, 2022 and 2023 was as follows:

Proportion - June 30, 2022 0.04185%
Proportion - June 30, 2023 0.04468%
Change - Increase/(Decrease) 0.00283%
For the year ended June 30, 2023, the Town recognized pension expense of $470,698.

At June 30, 2023, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions $ 528,818 $ -
Differences between Expected and Actual Experience 103,636 69,411 Differences between Projected and Actual Investment Earnings 945,298 - Differences between Employer's Contributions and
Proportionate Share of Contributions 16,206 128,213
Change in Employer's Proportion 45,408 2,942
Pension Contributions Made Subsequent to Measurement Date 757,381 - Total $ 2,396,747 $ 200,566
The Town reported $757,381 as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2024.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
$ 381,311
308,843
170,470
578,176
-
-
$ 1,438,800
2024
Total
2025
2026
2027
Thereafter
2028
Deferred
Outflows/
(Inflows) of
Resources
Fiscal Year Ending
June 30:

Actuarial Assumptions
The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age
Normal Cost
Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase (1)
Investment Rate of Return 6.9% (2)
Mortality (3)
(1) Varies by entry age and service
(2) Net of pension plan investment expenses, including inflation (3) Derived using CalPERS' membership data for all funds Discount Rate
The discount rate used to measure the total pension liability was 6.9 percent for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets.

Therefore, the current 6.9 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.9 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of 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 as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and longterm returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Assumed Long-Term
Asset Expected Real
Asset Class (a) Allocation Return (1)(2)
Global Equity Cap Weighted 30.00% 4.54%
Global Equity NonCap Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021-22 Asset Liability Study.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the Town’s proportionate share of the net pension liability for the Plans, calculated using the discount rate for the Plans, as well as what the Town’s proportionate share of the 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:

Miscellaneous
1% Decrease 5.90%
Net Pension Liability $ 8,062,747
Current 6.90%
Net Pension Liability $ 5,160,670
1% Increase 7.90%
Net Pension Liability $ 2,772,980
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

PARS Section 115 Trust
During fiscal year 2017-18, the Town established a Section 115 Trust Fund for Pension Costs with Public Agency Retirement Services (PARS). The amount in this trust is not included as part of the Town's net pension liability calculation.

NOTE 10 - OTHER POSTEMPLOYMENT BENEFITS PLAN
Plan Description
The Town of Yountville administers the Town’s retired employees health care plan, a single employer defined benefit health care plan. The plan provides medical benefits to eligible retired Town employees and their beneficiaries. The Town’s plan is affiliated with the State of California PERS (CalPERS) in so far as the Town’s health insurance premium payments are paid to the CalPERS. CalPERS through an aggregation of single-employer plans pools administrative functions in regard to purchases of commercial health care policies and coverage. Town regulations and resolutions assign authority to establish and amend plan provisions to the Town. A separate OPEB Trust has been established by the Town.

Employees Covered by Benefit Terms
At June 30, 2023 (the measurement date), the benefit terms covered the following employees:

Active employees 32
Inactive employees 22
Total employees 54
Contributions
The contribution requirements of Plan members and the Town are established and may be amended by the Town. The required contribution is based on projected pay-as-you-go financing requirements, with additional amounts to prefund benefits as determined annually by the Town Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Council. For the fiscal year ended June 30, 2023, the Town contributed $341,478. Plan members receiving benefits contributed no amounts of the total premiums.

Actuarial Assumptions
The following summarized the actuarial assumptions for the OPEB plan included in this fiscal year:

Valuation Date: January 1, 2022
Measurement Date: June 30, 2023
Actuarial Cost Method: Entry-Age Normal
Amortization Period: Open 30 year period
Asset Valuation Method:

Actuarial Assumptions:

Discount Rate 5.72%
Inflation 2.50%
Salary Increases 3.00%
Healthcare Trend Rate
Investment Rate of Return
Mortality
Retirement
Level percentage of payroll,

5.72%
CalPERS 2021 Experience Study
Rx PA Misc 2.7% @ 55
Rx PA Misc 2% @ 62

5.6 to 3.9%
Discount Rate
The discount rate used to measure the total OPEB liability was 5.72 percent. The projection of cash flows used to determine the discount rate assumed that Town contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Net OPEB Liability
The Town's net OPEB liability was measured as of June 30, 2023 (measurement date) and was determined by an actuarial valuation as of January 1, 2022 (valuation date) for the fiscal year ended June 30, 2023 (reporting date).

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Changes in the Net OPEB Liability
The following summarizes the changes in the net OPEB liability during the year ended June 30, 2023:

Fiscal Year Ended June 30, 2023
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
(Asset)
Balance at June 30, 2022 $ 5,184,645 5,406,941 $ 222,296 $ Service cost 273,145 - 273,145
Interest in Total OPEB Liability 318,482 - 318,482
Employer contributions - 341,478 (341,478)
Actual investment income - 96,524 (96,524)
Benefit payments (224,432) (224,432) -
Other 299,909 - (299,909)
Net changes 367,195 513,479 (146,284)
Balance at June 30, 2023 $ 5,774,136 $ 5,698,124 $ 76,012 Covered Employee Payroll $ 4,226,240
Total OPEB Liability as a % of Covered Employee Payroll 136.63% Plan Fid. Net Position as a % of Total OPEB Liability 98.68% Service Cost as a % of Covered Employee Payroll 6.46%
Net OPEB Liability as a % of Covered Employee Payroll 1.80% Deferred Inflows and Outflows of Resources
At June 30, 2023, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between actual and expected experience - $ 889,073 $ Difference between actual and expected earnings 247,550 - Change in assumptions 154,811 -
Totals $ 247,550 $ 1,043,884
Of the total amount reported as deferred outflows of resources related to OPEB, none were the result of Town contributions subsequent to the measurement date and before the end of the fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30,
2024 $ (182,318)
2025 (200,533)
2026 (35,604)
2027 (184,384)
2028 (151,173)
Thereafter (42,322)
Total $ (796,334)
Rate of Return
The long-term expected rate of return on OPEB plan investments was determined using a building- Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the table below.

Asset Class
Percentage of
Portfolio
Long-Term
Expected Rate of
Return
Fixed Income 35.00% 3.3% - 6.1%
Public Equity 60.00% 6.6% - 7.9%
Liquidity 5.00% 2.4%
Total 100.00%
OPEB Expense
The following summarizes the OPEB expense by source during the year ended June 30, 2023:

Service cost $ 273,145
Interest in TOL 318,482
Other (299,909)
Difference between actual and expected experience (191,913) Difference between actual and expected earnings 39,272
Change in assumptions (36,523)
OPEB Expense $ 102,554
The following summarizes changes in the net OPEB liability as reconciled to OPEB expense during the year ended June 30, 2023:
$ 76,012
(222,296)
(146,284)
Changes in deferred outflows 135,795
Changes in deferred inflows (228,435)
Employer contributions and implicit subsidy 341,478
OPEB Expense $ 102,554
Net OPEB liability ending
Net OPEB liability beginning
Change in net OPEB liability
Sensitivity to Changes in the Discount Rate
The net OPEB liability of the Town, as well as what the Town's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher, is as follows:
(1% Decrease ) 5.72% (1% Increase )
Net OPEB Liability (Asset) $ 880,739 $ 76,012 $ (586,156) Discount Rate
Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
Sensitivity to Changes in the Healthcare Cost Trend Rates The net OPEB liability of the Town, as well as what the Town's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates, is as follows:
(1% Decrease ) 5.6 to 3.9% (1% Increase )
Net OPEB Liability (Asset) $ (673,055) $ 76,012 $ 1,007,232 Trend Rate
NOTE 11 - COMMITMENTS AND CONTINGENCIES
Joint Wastewater Treatment Plant
Under its agreement with the State of California, the Town is obligated to provide capacity in its treatment facility for a maximum daily flow capacity not to exceed one million gallons per day originating from the Veterans Home of California. The annual operations and maintenance budget of the Town’s wastewater enterprise is subject to approval by the State. The State is also required to approve any expansion of the treatment facility.

The State shall annually pay to the Town an amount equal to the State’s share of the capital recovery cost of the joint wastewater treatment facility. The Town is obligated to contribute an annual capital recovery amount equal to the States share of the capital recovery cost of the joint wastewater treatment facility. The State’s contributions and related investment earnings are restricted for use only upon those portions of the treatment facilities that benefit the State.

The Town’s obligations to maintain, operate, and provide for replacement of the treatment facility are continuous subject to a three-year advance notice termination clause.

Contractor Commitments
As of June 30, 2023, the Town had outstanding commitments to contractors totaling $1,131,747, with an original contract amount of $1,354,047.

Lawsuits
The Town is subject to certain matters of litigation that may arise in the normal course of conducting Town business. Town management believes, based upon consultation with legal counsel, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the Town.

Additionally, Town management believes that the Town's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.

Federal and State Grant Programs
The Town participates in Federal and State grant programs. These programs are audited by the Town's independent accountants if required by and in accordance with the provisions of the Uniform Guidance and applicable State requirements. For Federal programs, the Town did not reach the level of qualifying expenditures during the current fiscal year that would require a single audit. Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The Town expects such amounts, if any, to be immaterial.

Town of Yountville
Notes to the Basic Financial Statements
June 30, 2023
NOTE 12 - JOINTLY FORMED ORGANIZATIONS
Jointly governed organizations are regional government or other multi-government arrangements that are jointly governed by representatives from each of the governments that create the organizations, but that are not joint ventures because the participants do not retain an ongoing financial interest or responsibility.

The Town is a participant in the following jointly governed organizations:

California Intergovernmental Risk Authority (CIRA)
The Town of Yountville is a member of California Intergovernmental Risk Authority. The Authority, under the terms of a Joint Powers Agreement with the Town of Yountville and several other cities and governmental agencies, provides insurance coverage for general liability, automobile liability, and workers compensation claims. Under the arrangement, the Authority purchases liability, automobile liability, and workers compensation insurance and charges participating cities and governmental agencies in amounts planned to match expenses of insurance premiums, estimated payments resulting from selfinsurance programs, and operating expenses. The Town’s obligations are limited to contributions to pay for related insurance premiums.

Napa Valley Housing Authority
The Town is a member of the Napa Valley Housing Authority created to provide subsidized public housing and related assistance. The Authority was created pursuant to a Joint Powers Agreement, and the Town’s obligations are limited to providing funds for a pro rata share of the Authority’s operating costs.

Upper Valley Waste Management Agency
The Town is a member of the Agency along with the City of Calistoga, City of St. Helena, and County of Napa. The Agency was formed to provide for economical regional waste management services including uniform rate reviews. Funding for operations is provided from a surcharge placed on landfill dumping fees.

Napa Valley Transportation Authority
The Town is a member of this Joint Powers Agency formed for the purpose of developing transportation planning throughout the County. The Town’s obligation is limited to serving on the Agency’s committees.

Transit Services Arrangement
The Town is party to an agreement with the City of Calistoga, City of Napa, County of Napa, and the Volunteer Center of Napa County (a private nonprofit organization) for the purpose of providing transit related services within the County. The Town’s funding requirement is met by assignment of its TDA transit fund allocation to the County of Napa.

Flood Protection Sales Tax Joint Powers Agreement
The Town is a member of the Joint Powers Agency for the purpose of establishing a plan for the use and equitable distribution of the 1/2% Flood Protection Sales Tax which was passed by voters in March 1998.

As a member the Town will receive allocations of the sales tax to be used for projects outlined in the agreement.

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Town of Yountville
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2023
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Property taxes $ 2,167,000 2,167,000 $ 2,657,168 $ 490,168 $ Sales taxes 1,640,000 1,640,000 1,628,440 (11,560)
Transient occupancy tax 7,500,000 7,500,000 8,750,591 1,250,591 Other taxes 133,000 133,000 175,975 42,975
Licenses and permits 215,250 215,250 225,141 9,891
Fines and forfeitures 8,000 8,000 60,023 52,023
Intergovernmental 150,000 150,000 257,362 107,362
Interest 30,600 30,600 449,117 418,517
Rent and concessions 356,000 356,000 378,789 22,789
Charges for Services 354,500 354,500 487,620 133,120
Other Revenue 299,600 299,600 346,265 46,665
Total Revenues 12,853,950 12,853,950 15,416,491 2,562,541

EXPENDITURES
Current:

General Government 4,314,692 5,352,206 3,719,402 1,632,804 Public Safety 1,991,895 1,991,895 1,858,032 133,863
Public Works 2,505,745 2,550,440 2,346,409 204,031
Community Promotion 411,143 411,143 351,745 59,398
Parks and Recreation 1,744,601 1,830,269 1,794,711 35,558 Debt service
Principal retirement 10,032 10,032 155,512 (145,480)
Interest and fiscal charges 154 154 2,447 (2,293)
Total Expenditures 12,146,139 10,978,262 10,228,258 1,917,881 Excess (Deficiency) of Revenues over Expenditures 1,875,688 707,811 5,188,233 4,480,422

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (3,741,268) (2,197,600) (3,732,933) 8,335 Total Other Financing Sources (Uses) (2,197,600) (3,741,268) (3,732,933) 8,335 Net Change in Fund Balance (3,033,457) (321,912) 1,455,300 4,488,757 Fund Balance Beginning 17,642,036 17,642,036 17,642,036 - Fund Balance Ending $ 17,320,124 $ 14,608,579 $ 19,097,336 $ 4,488,757 Town of Yountville
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Measure T Fund
For the Year Ended June 30, 2023
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 525,000 525,000 $ 687,914 $ 162,914 $ Interest 200 200 5,255 5,055
Total Revenues 525,200 525,200 693,169 167,969

EXPENDITURES
Capital outlay 525,000 525,000 354,279 170,721
Total Expenditures 525,000 525,000 354,279 170,721
Excess (Deficiency) of Revenues over Expenditures 200 200 338,890 338,690

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balance 200 200 338,890 338,690
Fund Balance Beginning 196,270 196,270 - 196,270
Fund Balance Ending $ 196,470 $ 535,160 196,470 $ 338,690 $ Town of Yountville
Schedule of Pension Contributions
June 30, 2023
(Last Ten Years)
Miscellaneous Plan
Plan Measurement Date 2014 2015 2016 2017 2018 2019 2020 2021 2022 Fiscal Year Ended 2015 2016 2017 2018 2019 2020 2021 2022 2023 Contractually Required Contributions $ 387,070 $ 428,289 $ 474,799 $ 524,489 $ 596,324 $ 691,306 $ 651,564 $ 673,383 $ 757,381 Contributions in Relation to Contractually
Required Contributions 387,070 428,289 474,799 524,489 596,324 691,306 651,564 673,383 757,381 Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 2,116,105 $ 2,310,300 $ 2,531,110 $ 2,791,647 $ 3,083,079 $ 3,374,258 $ 3,336,879 $ 3,308,529 $ 3,885,388 Contributions as a % of Covered Payroll 18.29% 18.54% 18.76% 18.79% 19.34% 20.49% 19.53% 20.35% 19.49% Town of Yountville
Schedule of Proportionate Share of Net Pension Liability June 30, 2023
(Last Ten Years)
Miscellaneous and Safety Plan
Plan Measurement Date 2014 2015 2016 2017 2018 2019 2020 2021 2022 Fiscal Year Ended 2015 2016 2017 2018 2019 2020 2021 2022 2023 Proportion of Net Pension
Liability (Safety and Misc) 0.03937% 0.04292% 0.04077% 0.04043% 0.03997% 0.04018% 0.04034% 0.04185% 0.04468% Proportion of Net Pension
Liability (Misc Plan Only) 0.09911% 0.10739% 0.10155% 0.10171% 0.10219% 0.10283% 0.10406% 0.11920% 0.11029% Proportionate Share of
Net Pension Liability $ 2,449,513 $ 2,946,171 $ 3,527,582 $ 4,009,560 $ 3,851,205 $ 4,117,728 $ 4,389,375 $ 2,263,347 $ 5,160,670 Covered Payroll $ 2,023,677 $ 2,116,105 $ 2,310,300 $ 2,531,110 $ 2,791,647 $ 3,083,079 $ 3,374,258 $ 3,336,879 $ 3,308,529 Proportionate Share of NPL
as a % of Covered Payroll 121.04% 139.23% 152.69% 158.41% 137.95% 133.56% 130.08% 67.83% 155.98% Plan's Fiduciary Net Position
as a % of the TPL 81.15% 76.29% 71.85% 72.01% 75.04% 75.67% 75.80% 88.29% 75.76% Town of Yountville
Schedule of OPEB Contributions
June 30, 2023
(Last Ten Years)
Fiscal Year Ended 2018 2019 2020 2021 2022 2023
Actuarially determined contribution (ADC) $ 359,315 $ 466,440 $ 480,409 $ 414,051 $ 425,804 $ 299,915 Less: actual contribution in relation to ADC (574,451) (1,102,044) (405,199) (46,833) (417,323) (341,478) Contribution deficiency (excess) $ (215,136) $ (635,604) $ 75,210 $ 367,218 $ 8,481 $ (41,563) Covered employee payroll $ 3,313,486 $ 3,083,079 $ 3,331,741 $ 3,594,064 $ 3,555,195 $ 4,226,240 Contrib. as a % of covered employee payroll 17.34% 35.74% 12.16% 1.30% 11.74% 8.08% Notes to Schedule:

Assumptions and Methods
Valuation Date:

Measurement Date:

Actuarial Cost Method:

Amortization Period:

Asset Valuation Method:

Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Healthcare Trend Rate
Investment Rate of Return
Mortality
Retirement
Other Notes
There were no changes in benefit terms.

January 1, 2022
June 30, 2022
Entry-Age Normal Cost
Open 30 year period
From FY2019 to FY2022, the discount rate increased from 5.65% to 5.72%, the inflation rate decreased from 2.75% to 2.5%, the salary increase rate decreased from 3.25% to 3%, and the rate of return increased from 5.65% to 5.72%.

5.72%
Level percentage of payroll
Rx PA Misc 2% @ 62
Rx PA Misc 2.7% @ 55
CalPERS 2021 Experience Study

5.6 to 3.9%

5.7%

2.5%

3.0%
GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available if less than ten years are available. GASB 75 was adopted as of June 30, 2018.

Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported.

Town of Yountville
Schedule of Changes in Net OPEB Liability
June 30, 2023
(Last Ten Years)
Fiscal Year Ended 2018 2019 2020 2021 2022 2023
Total OPEB liability
Service cost $ 313,121 $ 323,297 $ 333,804 $ 335,358 $ 345,419 $ 273,145 Interest 274,234 299,254 326,187 343,104 373,791 318,482 Differences between expected and actual experience - - (424,734) - (966,476) - Changes of assumptions - - (130,013) - (134,059) -
Benefit payments (158,101) (151,304) (161,410) (161,833) (192,323) (224,432) Net change in Total OPEB Liability 429,254 471,247 (56,166) 516,629 (573,648) 367,195 Total OPEB Liability - beginning 4,619,625 5,048,879 5,520,126 5,463,960 5,980,589 5,406,941 Total OPEB Liability - ending $ 5,048,879 $ 5,520,126 $ 5,463,960 $ 5,980,589 $ 5,406,941 $ 5,774,136 Plan fiduciary net position
Employer contributions $ 574,451 $ 1,102,044 $ 543,199 $ 46,833 $ 417,323 $ 341,478 Net investment income 174,585 236,316 181,024 1,102,353 (713,545) 96,524 Benefit payments (158,101) (151,304) (161,410) (161,833) (192,323) (224,432) Other - - - (138,000) - 299,909
Administrative expense (11,973) (8,263) (23,169) - - -
Net change in plan fiduciary net position 578,962 1,178,793 539,644 849,353 (488,545) 513,479 Plan fiduciary net position - beginning 2,526,438 3,105,400 4,284,193 4,823,837 5,673,190 5,184,645 Plan fiduciary net position - ending $ 3,105,400 $ 4,284,193 $ 4,823,837 $ 5,673,190 $ 5,184,645 $ 5,698,124 Net OPEB liability (asset) $ 1,943,479 1,235,933 640,123 307,399 222,296 76,012 Plan fiduciary net position as a percentage of the
total OPEB liability 61.51% 77.61% 88.28% 94.86% 95.89% 98.68% Covered Employee Payroll $ 3,313,486 $ 3,083,079 $ 3,331,741 $ 3,594,064 $ 3,555,195 $ 4,226,240 Net OPEB liability as a percentage of covered employee payroll 58.65% 40.09% 19.21% 8.55% 6.25% 1.80% Total OPEB liability as a percentage of covered employee payroll 152.37% 179.05% 164.00% 166.40% 152.09% 136.63% Other Notes
There were no changes in benefit terms.

GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available if less than ten years are available. GASB 75 was adopted as of June 30, 2018.

From FY2019 to FY2022, the discount rate increased from 5.65% to 5.72%, the inflation rate decreased from 2.75% to 2.5%, the salary increase rate decreased from 3.25% to 3%, and the rate of return increased from 5.65% to 5.72%.

Town of Yountville
Schedule of PARS OPEB Trust Investment Returns
June 30, 2023
(Last Ten Years)
Annual
Money-weighted
Rate of Return, Net
Fiscal Year of Investment Expenses
2017 9.38%
2018 7.16%
2019 5.36%
2020 5.61%
2021 10.16%
2022 5.29%
2023 5.57%
Note: Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

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Town of Yountville
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Capital Projects Fund
For the Year Ended June 30, 2023
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 358,400 160,000 $ 14,010 $ (344,390) $ Interest 1,500 1,500 28,367 26,867
Charges for Services - - 1 1
Other Revenue - - - -
Total Revenues 359,900 161,500 42,378 (317,522)

EXPENDITURES
Capital outlay 468,100 1,188,548 311,717 876,831
Total Expenditures 1,188,548 468,100 311,717 876,831
Excess (Deficiency) of Revenues over Expenditures (306,600) (828,648) (269,339) 559,309

OTHER FINANCING SOURCES (USES)
Transfers in 751,500 1,101,500 1,101,973 473
Transfers out - - - -
Total Other Financing Sources (Uses) 1,101,500 751,500 1,101,973 473 Net Change in Fund Balance 272,852 444,900 832,634 559,782 Fund Balance Beginning 995,286 995,286 - 995,286
Fund Balance Ending $ 1,440,186 $ 1,827,920 1,268,138 $ 559,782 $ Town of Yountville
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Debt Service Fund
For the Year Ended June 30, 2023
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Interest 400 $ 400 $ 15,119 $ 14,719 $
Total Revenues 400 400 15,119 14,719

EXPENDITURES
Debt service
Principal retirement 624,000 624,000 624,000 -
Interest and fiscal charges 272,924 272,924 272,474 450 Total Expenditures 896,924 896,924 896,474 450
Excess (Deficiency) of Revenues over Expenditures (896,524) (896,524) (881,355) 15,169

OTHER FINANCING SOURCES (USES)
Transfers in 852,991 1,152,991 1,152,990 (1)
Transfers out - - - -
Total Other Financing Sources (Uses) 1,152,991 852,991 1,152,990 (1) Net Change in Fund Balance 256,467 (43,533) 271,635 15,168 Fund Balance Beginning 65,499 65,499 - 65,499
Fund Balance Ending $ 21,966 $ 337,134 321,966 $ 15,168 $

NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Gas Tax Fund accounts for funds received from the State of California to use for street and highway related projects.

Public Education and Government Television Fund is used to account for public education and government fees.

Public Art Program Fund is used to account for certain monies paid by commercial applicants applying for building permits restricted for the acquisition, installation, improvement, and maintenance of physical artwork to be displayed in the Town for public view.

Housing Grants Program Fund is used to account for grant funds received for the CalHome Program from the California Department of Housing and Community Development that is restricted for the Owner-Occupied Rehabilitation Program to fund necessary home improvement projects for low income eligible residents to bring their home up to current building code standards.

SB1 2017 Road Repair Act Fund is used to account for SB 1 2017 Road Repair Act monies. Disability Access Fee SB1167 Fund is used to account for Disability Access fees.

Measure T Equivalent Fund is used to account for 6.67% of other monies to be spent for class 1 bicycle improvements, per the Measure T Ordinance (Napa Countywide Road Maintenance Act).

Fire Services Fund accounts for financial activities relating to the Fire Emergency Services Impact Fee that are restricted to be used to offset additional costs of personnel, facilities, and equipment required to meet demand on fire and medical services generated by new development.

Disability Access Fee SB1167 Fund is used to account for Disability Access fees.

Utility Underground Impact Fee Fund was established to pay for the undergrounding of existing overhead utilities along primary streets. Proceeds of each fee collected are to be allocated to the fund that finances approved utility undergrounding projects.

Housing Opportunity Fund is used to account for monies restricted for the development of affordable housing units.

Measure S Fund is used to account for revenue received from voter approved Measure S which increased transient occupancy tax by 1%. This special tax is for funding programs related to workforce and affordable housing.

Upper Valley Disposal Service Franchise Fees Fund is used to account for franchise fees collected for waste disposal services.

Town of Yountville Community Foundation Fund is used to account for the activities of the Town of Yountville Community Foundation.

Tallent Lane Drainage Fund accounts for the activities of the Tallent Lane Benefit District that was established to provide safer and improved access to properties fronting Tallent Lane.

Mesa Court Drainage Fund accounts for activities of the Mesa Court Drainage Benefit District that was established to correct drainage problems within the area of Mesa Court.

NONMAJOR GOVERNMENTAL FUNDS
Capital Projects Funds
Measure A Maintenance Fund is used to account for Measure A maintenance capital projects.

Facility Repair and Replacement Fund is used to accumulate resources for repair and replacement capital projects.

Fleet, Tools, and Equipment Repair and Replacement Fund is used to accumulate resources for repair and replacement capital projects.

Town of Yountville
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Public Public Housing SB1 2017
Gas Education Art Grants Road Repair
Tax and Gov't Program Program Act
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 136,882 $ 45,654 $ 25,909 $ 137,782 $ 145,607 $ Taxes receivable - - 3,811 - -
Interest receivable 882 348 180 902 921
Due from other governments 6,790 - - - 5,987
Due from other funds - - - - -
Loans receivable - - - - -
Total assets $ 144,554 $ 49,813 $ 26,089 $ 138,684 $ 152,515

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable $ 785 $ - $ 564 $ 1,332 $ -
Other liabilities - - 2,725 - -
Total liabilities 785 - 3,289 1,332 -
Deferred Inflows of Resources:

Unavailable revenues - - - - -
Fund Balances:

Restricted:

Streets 143,769 - - - 152,515
Housing - - - 137,352 -
Cultural programs - 49,813 22,800 - -
Other - - - - -
Assigned:

Capital projects - - - - -
Unassigned - - - - -
Total fund balances 143,769 49,813 22,800 137,352 152,515 Total liabilities, deferred inflows of
resources and fund balances $ 49,813 144,554 $ 26,089 $ 138,684 $ 152,515 $ Cont'd
Special Revenue Funds
Town of Yountville
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Taxes receivable
Interest receivable
Due from other governments
Due from other funds
Loans receivable
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Other liabilities
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Fund Balances:

Restricted:

Streets
Housing
Cultural programs
Other
Assigned:

Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Disability Utility
Measure T Fire Access Fee Underground Housing
Equivalent Services SB 1186 Impact Fee Opportunity
Fund Fund Fund Fund Fund
$ 32 37,657 $ 1,592 $ 112,836 $ 175,146 $
- - - - -
248 - 6 742 896
- - - - -
- - - - -
- - - - 1,506,525
$ 37,905 $ 32 $ 1,598 $ 113,578 $ 1,682,567
$ - $ - $ 145 $ - $ -
- - - - -
- - 145 - -
- - - - 157,425
37,905 - - 113,578 -
- - - - 1,525,142
- - - - -
- 32 1,453 - -
- - - - -
- - - - -
37,905 32 1,453 113,578 1,525,142
$ 37,905 $ 32 $ 1,598 $ 113,578 $ 1,682,567
Cont'd
Special Revenue Funds
Town of Yountville
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Taxes receivable
Interest receivable
Due from other governments
Due from other funds
Loans receivable
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Other liabilities
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Fund Balances:

Restricted:

Streets
Housing
Cultural programs
Other
Assigned:

Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Upper Valley Town of
Disposal Yountville Tallent Mesa
Service Community Lane Court
Measure S Franchice Fees Foundation Drainage Drainage
Fund Fund Fund Fund Fund
$ 100,167 2,307,550 $ 131,935 $ $ 18,212 $ 50,784
96,787 24,378 - - -
14,777 610 - 120 334
- - - - -
- - 1,215 - -
337,606 - - - -
$ 2,756,720 $ 125,155 $ 133,150 $ 18,332 $ 51,118
$ - $ - $ 89 $ - $ -
- - - - -
- - 89 - -
- - - - -
- - - 18,332 51,118
2,756,720 - - - -
- - 133,061 - -
- 125,155 - - -
- - - - -
- - - - -
2,756,720 125,155 133,061 18,332 51,118
$ 2,756,720 $ 125,155 $ 133,150 $ 18,332 $ 51,118
Cont'd
Special Revenue Funds
Town of Yountville
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Taxes receivable
Interest receivable
Due from other governments
Due from other funds
Loans receivable
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Other liabilities
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Fund Balances:

Restricted:

Streets
Housing
Cultural programs
Other
Assigned:

Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Fleet, Tools
Facility and Equipment Total
Measure A Repair and Repair and Nonmajor
Maintenance Replacement Replacement Governmental
Fund Fund Fund Funds
$ 1,153,171 480,548 $ 1,229,660 $ $ 6,291,124
- - - 124,976
3,162 7,591 8,091 39,810
0- - 12,777
- - - 1,215
- - - 1,844,131
$ 1,160,762 483,710 $ 1,237,751 $ $ 8,314,033
$ 42,546 - $ - $ $ 45,461
- - - 2,725
42,546 - - 48,186
- - - 157,425
- 483,710 - 1,000,927
- - - 4,419,214
- - - 205,674
- - - 126,640
1,118,216 - 1,237,751 2,355,967
- - - -
483,710 1,118,216 1,237,751 8,108,422
$ 483,710 $ 1,160,762 $ 1,237,751 $ 8,314,033
Concluded
Capital Projects Funds
Town of Yountville
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
Public Public Housing SB1 2017
Gas Education Art Grants Road Repair
Tax and Gov't Program Program Act
Fund Fund Fund Fund Fund

REVENUES
Other taxes $ - 18,687 $ $ - $ - $ -
Licenses and permits - - 11,332 - -
Intergovernmental 78,337 - - 120,857 71,406
Interest 2,163 1,141 696 2,402 2,300
Charges for Services - - - - -
Other Revenue - - - - -
Total Revenues 80,500 19,828 12,028 123,259 73,706

EXPENDITURES
Current:

General Government - 25,810 - - -
Housing - - - 35,041 -
Public Works - - 29,499 - -
Community Promotion - - - - -
Capital outlay 5,804 - - - -
Total Expenditures 5,804 25,810 29,499 35,041 -
Excess (Deficiency) of Revenues over Expenditures (5,982) 74,696 (17,471) 88,218 73,706

OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfers out - - - - -
Total Other Financing Sources (Uses) - - - - -
Net Change in Fund Balances 74,696 (5,982) (17,471) 88,218 73,706 Fund Balances Beginning 69,073 55,795 40,271 49,134 78,809 Fund Balances Ending $ 49,813 143,769 $ 22,800 $ 137,352 $ 152,515 $ Cont'd
Special Revenue Funds
Town of Yountville
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Other taxes
Licenses and permits
Intergovernmental
Interest
Charges for Services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General Government
Housing
Public Works
Community Promotion
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Disability Utility
Measure T Fire Access Fee Underground Housing
Equivalent Services SB 1186 Impact Fee Opportunity
Fund Fund Fund Fund Fund
$ - $ - $ - $ - $ -
- - - - -
- - - - -
716 1 25 2,145 2,950
- - 1,991 - 254
- - - - -
716 2,016 1 2,145 3,204
- - - - -
- - - - 64,200
- - - - -
- - - - -
- - - - -
- - - - 64,200
716 2,016 1 2,145 (60,996)
- - - - 64,200
- - (1,973) - -
- - (1,973) - 64,200
716 1 43 2,145 3,204
37,189 31 1,410 111,433 1,521,938
$ 37,905 $ 32 $ 1,453 $ 113,578 $ 1,525,142
Cont'd
Special Revenue Funds
Town of Yountville
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Other taxes
Licenses and permits
Intergovernmental
Interest
Charges for Services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General Government
Housing
Public Works
Community Promotion
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Upper Valley Town of
Disposal Yountville Tallent Mesa
Service Community Lane Court
Measure S Franchice Fees Foundation Drainage Drainage
Fund Fund Fund Fund Fund
$ 107,228 729,216 $ - $ - $ - $
- - - - -
- - - - -
1,236 42,767 - 347 965
- - - - -
- - 9,508 - -
108,464 771,983 9,508 347 965
3,571 - - - -
- - - - -
- - - - -
- - 8,846 - -
- - - - -
3,571 - 8,846 - -
104,893 771,983 662 347 965
- - 1,215 - -
- - - - -
- - 1,215 - -
771,983 104,893 1,877 347 965
1,984,737 20,262 131,184 17,985 50,153
$ 2,756,720 $ 125,155 $ 133,061 $ 18,332 $ 51,118
Cont'd
Special Revenue Funds
Town of Yountville
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Other taxes
Licenses and permits
Intergovernmental
Interest
Charges for Services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General Government
Housing
Public Works
Community Promotion
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Fleet, Tools
Facility and Equipment Total
Measure A Repair and Repair and Nonmajor
Maintenance Replacement Replacement Governmental
Fund Fund Fund Funds
$ - $ - $ - $ 855,131
- - - 11,332
- - - 270,600
9,133 23,597 23,377 115,961
- - - 2,245
- - - 9,508
9,133 23,597 23,377 1,264,777
- - - 29,381
- - - 99,241
- - - 29,499
- - - 8,846
- 304,399 - 310,203
- 304,399 - 477,170
9,133 (280,802) 23,377 787,607
- 350,000 200,000 615,415
- - - (1,973)
- 350,000 200,000 613,442
9,133 69,198 223,377 1,401,049
474,577 1,049,018 1,014,374 6,707,373
$ 483,710 $ 1,118,216 $ 1,237,751 $ 8,108,422
Concluded
Capital Projects Funds
Town of Yountville
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Other taxes $ - $ - $ - $ -
Licenses and permits - - - -
Intergovernmental 83,505 83,505 78,337 (5,168)
Interest 200 200 2,163 1,963
Rent and concessions - - - -
Charges for Services - - - -
Other Revenue - - - -
Total Revenues 83,705 83,705 80,500 (3,205)

EXPENDITURES
Current:

General Government - - - -
Housing - - - -
Public Works - - - -
Community Promotion - - - -
Parks and Recreation - - - -
Capital outlay 85,000 98,828 5,804 93,024
Total Expenditures 85,000 98,828 5,804 93,024
Excess (Deficiency) of Revenues over Expenditures (1,295) (15,123) 74,696 89,819

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances (1,295) (15,123) 74,696 89,819 Fund Balances Beginning 69,073 69,073 69,073 -
Fund Balances Ending $ 67,778 $ 53,950 $ 143,769 $ 89,819 Cont'd
Gas Tax Fund
Budgeted Amounts
Town of Yountville
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Other taxes
Licenses and permits
Intergovernmental
Interest
Rent and concessions
Charges for Services
Other Revenue
Total Revenues

EXPENDITURES
Current: