Town of Yountville
Staff Report
6550 Yount Street
Yountville, CA 94599
Agenda Item #: 11C
Yountville Town Council Staff Report
DATE: May 20, 2025
TO: Mayor and Town Council
FROM: Brad Raulston, Town Manager; Celia King, Administrative Service Director PREPARED BY: Celia King, Administrative Service Director
RECOMMENDATION
Adopt Resolution Number 25-4361 adopting the Mid-Cycle adjustments for budget year two of the Biennial Budget for Fiscal Year 2024/2025 and 2025/2026, Appropriations (Gann) Limit and salary ranges for Fiscal Year 2025/2026, approving $2,000,000 usage of Drought Water Reserve Fund 57 and $1,000,000 usage of the Water and Wastewater Utility Enterprise Capital Projects Restricted Fund 06 to support the 1 Million Gallon Water Storage Tank Project WA-0019, and reaffirming existing policies (General Finance Policy, Town Investment Policy, Fund Balance Policy, Use of Long-Term Debt Policy, OPEB Trust Investment Policy, Utility Enterprise Rate Policy, Use of Drought Water Reserve Policy, Use of Water and Wastewater Utility Enterprise Capital Projects Restricted Fund Policy).
DISCUSSION/BACKGROUND
On May 21, 2024, the Yountville Town Council adopted the Town of Yountville’s first Biennial Budget which includes revenue and expenditure estimates for Fiscal Year 2024/2025 and 2025/2026. On February 18, 2025, Town staff brought forward mid-year adjustments. Town staff now propose mid-cycle adjustments to revise forecasted revenues and expenditures, based on updated data and assumptions, in the upcoming fiscal year.
In all operating departments within the General Fund, Water Utility Enterprise Fund, and Wastewater Utility Enterprise Fund, the following updates to costs occurred:
• Salary costs were adjusted to reflect a 2.5% Cost of Living Adjustment (COLA) based on the January Consumer Price Index. This is a reduction from the previously assumed 5% which is the maximum amount per the current Memorandum of Understanding (MOU). • Liability, Worker’s Compensation, and Property Insurance premiums were revised based on the updated estimates received from California Intergovernmental Risk Authority (CIRA), the Town’s risk pool.
A summary of additional proposed changes is shown below by fund:
GENERAL FUND 01
• Revenues
o Transient Occupancy Tax is proposed to remain flat to the current fiscal year projection of $8,785,600 rather than assuming an increase. This is based on current year-to-date collections, industry information, and revenue trends.
o Sales Tax reduced by $67,000 to $1,675,000 as recommended by HdL, the Town’s sales tax auditing and consulting firm.
• Expenditures
o Yountville share of Regional Climate Action and Adaptation Plan moved from NonDepartmental to Upper Valley Disposal Franchise Fee Fund 29. o Town Clerk & Communications Department budget adjusted to reflect the removal of part-time position and addition of one full-time Deputy Director of Marketing and Economic Development.
o Law Enforcement Services costs decreased by $247,512 due to current countywide staffing levels and recruitment/retention challenges.
o Fire & Emergency Medical Services costs were reduced to assume a 5% increase rather than the original assumption of a 10% increase.
OTHER POST-EMPLOYMENT BENEFITS (OPEB) FUND 02
• Costs of retiree medical premiums increased based on updated data provided by CalPERS.
Transfer in from OPEB Trust, which covers these costs, also increased. • Department allocation funding source and corresponding contribution to the Section 115 Trust revised based on 2% of updated salary costs.
PERS UAAL RESERVE FUND 03
• Unfunded Actuarially Accrued Liability (UAAL) amount and transfer from Trust increased based on recent valuation from CalPERS.
• Department allocation funding source and corresponding contribution to the Section 115 Trust revised based on 5% of updated salary costs.
UTILITY ENTERPRISE CAPITAL PROJECTS RESTRICTED FUND 06
• Increased transfer into Water Capital Improvement Fund 60 by $1,000,000 to provide funding for the 1 Million Gallon Water Storage Tank Project WA-0019.
WATER ENTERPRISE FUNDS
• Drought Water Reserve Fund 57
o Added $2,000,000 transfer out to Water Capital Improvements Fund 60 to provide funding for the 1 Million Gallon Water Storage Tank Project WA-0019. ▪ Town Council may use this fund to pay for capital construction costs for water projects which are designed for the purpose of increasing the Town’s water storage capacity. Prior to use of the fund, staff will formalize a plan in accordance with the Use of Drought Water Reserve Policy for the Town Council to review and approve.
• Water Capital Improvement Fund 60
o Added $2,000,000 transfer in from Drought Water Reserve Fund 57. o Moved $30,000 of Webber Street Intertie Project WA-0020 from current fiscal year into Fiscal Year 2025/2026.
o Increased transfer in from Utility Enterprise Capital Projects Restricted Fund 06 by $1,000,000.
o Increased 1M Gallon Water Storage Tank Project WA-0019 by $3,000,000.
WASTEWATER ENTERPRISE FUNDS
• Wastewater Treatment Capital Improvement Fund 63
o Removed $2,000,000 of previously anticipated federal grant funding as it is not currently available.
o Moved $150,000 Clean Digester Project WW-0019 budget from current fiscal year into Fiscal Year 2025/2026.
o Moved $1,574,000 of budget for Emergency Recycled Water Transmission Main Repair WW-0042 from current year into Fiscal Year 2025/2026. o Moved $1,850,000 budget for Joint Treatment Plant Office Modernization Project WW0011 from current fiscal year into Fiscal Year 2025/2026. o Increased Plant Equipment Replacement Program WW-4026 by $500 up to $95,000. • Wastewater Collection Capital Improvement Fund 64
o Increased Town Pump Station Equipment Replacement Program WW-5026 by $500 up to $95,000.
SPECIAL REVENUE FUNDS
• Public Art Program Fee Fund 23
o Reduced transfer in from General Fund reduced by $16,500 down to $12,000 based on anticipated need.
• Measure T/U Transportation Improvement Fund 25
o Increased estimated revenues based on data provided by NVTA. o Increased project costs to $844,000 to match expected revenues. • Measure T/U Equivalent Fund 27
o Added $40,000 expenditure for Pedestrian & Bicycle Facility Project ST-0038. • Housing Opportunity Fund 70
o Increase to Fair Housing Napa Valley contribution of $4,000. • Measure S Affordable and Workforce Housing Fund 71
o Revenue estimates decreased slightly based on proposed Transient Occupancy Tax collections being revised to remain flat.
o Increased Yountville Commons planning phase costs by $800,000. • Measure A Maintenance Fund 75
o Increased Hydroflush Wiers and Floodwall Operation Program DF-3026 by $15,000. o Added $100,000 for the new Town-Wide Flood Management Assessment Project DF0021. o Added $75,000 for new Oak Circle Spillway and Warning System Improvements Project DF-0022.
TOURISM IMPROVEMENT DISTRICT ASSESSMENT FUND 22
• Revenue estimates decreased slightly based on proposed Transient Occupancy Tax collections being revised to remain flat.
DEBT SERVICE FUNDS
• 2017 Lease Revenue Bonds Debt Service Fund 54
o Transfer in from General Fund reduced by $20,000 to utilize interest income earnings and available fund balance.
• 2020 Direct Placement Financing Debt Service Fund 55
o Transfer in from General Fund reduced by $20,000 to utilize interest income earnings and available fund balance.
CAPITAL PROJECTS FUNDS
• Capital Projects Fund 50
o Increased the transfer in from General Fund by $200,000. o Added $75,000 of anticipated revenue from TDA-3 grant funding. o Added a $500,000 transfer in from Upper Valley Waste Disposal Franchise Fee Fund 29 to support waste related projects.
o Added $104,000 for Community Center Enhancements Project CF-0022. o Moved Vineyard Park Repair and Maintenance from Fiscal Year 2024/2025 to Fiscal Year 2025/2026, increased the project budget from $75,000 to $225,000, and updated the project number from PK-0032 to CF-0050.
o Added $75,000 for North Park Facility Enhancements Project CF-0051. o Added $75,000 for interior painting of Schmitt Hall Project CF-0052. o Added $50,000 for painting of the floor in Schmitt Hall project CF-0053. o Moved Energy Resiliency Project CP-0033 from Fiscal Year 2024/2025 to Fiscal Year 2025/2026, increased the project budget from $120,000 to $350,000, and renamed the Virtual Power Nodes Project.
o Added $200,000 for Workable 3-Bin Waste Sorting Project CP-0035. o Added $200,000 for YountFill Water Stations Project CP-0037. o Increased New Path Southern Loop Project ST-0034 by $75,000 up to $125,000. o Increased Surveys and Monuments Project ST-0004 by $4,500 up to $25,000. o Increased Traffic Calming Program ST-4026 by $4,500 up to $25,000. o Moved $200,000 for Mobility Plan & Wayfinding Project ST-0035 from Fiscal Year 2024/2025 to Fiscal Year 2025/2026.
o Moved $300,000 Washington Street South Parking Lot ST-0027 from Fiscal Year 2024/2025 to Fiscal Year 2025/2026.
• Facilities Repair and Replacement Fund 81
o Decreased Community Center/Hall Solar Panel Maintenance Project CF-0040 by $20,000.
o Increased Community Center/Hall Asphalt Repars Project CF-0041 by $25,000. o Increased Town Facilities Backflow Maintenance and Repair Program CF-2026 by $44,750.
• Fleet, Tools, and Equipment Repair and Replacement Fund 81 o Added $50,000 to ST-0037 for purchase of EV Lawn Mower.
OTHER MID-CYCLE BIENNIAL BUDGET UPDATE INFORMATION
Total Expenditure Budget for FY 2025/2026 including General Fund, Enterprise Funds, Special Revenue Funds, Capital Projects, and Debt Service is $34,699,283.
General Fund Reserve Fund Balance at the end of FY 2025/2026 is estimated to be $5,575,466. o This balance represents 40% of Fiscal Year 2025/2026 General Fund Expenditures. o Of this amount, $3,178,016 is categorized as available for emergency use as defined in the Yountville Municipal Code.
o The remaining amount ($2,398,450) is categorized as available for contingency use.
Gann Limit
In concert with the annual budget adoption process the Gann Limit calculations have been completed to ensure the Town is in compliance with and not exceeding the limit including its’ voter approved override. For the upcoming fiscal year, the Town is under the limit by 13.58%. Because this limit is driven by legislation governing the use of tax proceeds, staff have reviewed Article XIII B, California Constitution Government Spending Limit, and the League of California Cities 1991 Revenue Manual, to ensure all calculations were properly included.
Budget Completion
On or before July 1, the final Adopted Mid-Cycle Biennial Budget document will be available on the Town’s website. A physical public copy of the budget document will be kept at Town Hall and the Yountville Library.
ENVIRONMENTAL REVIEW
Exempt per California Environmental Act (CEQA) Guideline, Section 15061(b)(3).
FISCAL IMPACT
Is there a Fiscal Impact? Yes
Is it Currently Budgeted? No
Where is it Budgeted? N/A
Is it Mandatory or Discretionary? Mandatory
Is there a Staff Resource Impact? Yes
STRATEGIC PLAN GOAL
Is item Identified in Strategic Plan? Yes
ATTACHMENTS
1. Resolution No 25-4361
2. Mid-Cycle Update-Biennial Budget FY24-25 and 25-26