Yountville City Council
February 3, 2026

Fiscal Years 2026/27 – 2027/28
Proposed Biennial Budget
Preview
§Commitment to Fiscal Responsibility
§ Advancing Council-Adopted Priorities
§ Maintaining Core Services
§ Investing in Long-Term Sustainability
§ Purpose of this Budget Preview:
• Review Current General Fund Reserve
• Preview Upcoming Budget Highlights
• Opportunity for Town Council to Discuss Potential Budget Items Budget Goals
§ Balance Policy Minimum: 35% of General Fund expenditures § Current Reserves (based on FY25/26 budgeted expenditures) is 40%
§Two Section 115 Trusts
• Pension Obligations
• Other Post-Employment Benefits (OPEB)
Fund 07 - General Fund Reserve
§ 36 Full-Time Positions
§ ~60 Part-Time and Seasonal Staff
§ Cost of Living Adjustment (COLA) will be included in the biennial budget
§ Contracted Services
• Sheriff
• Fire
• Building/Planning
People Deliver Services
Town Council Priorities
§ Capital Projects Fund 50 – Focus on Yountville Commons § Water and Wastewater Capital Projects
• Based on Projects Outlined in the Five-Year Capital
Improvement Program
§ Sustainability Efforts
§ Maintain and Improve Streets
and Roads with Measure U funds
Capital Projects
§ Transient Occupancy Tax
• 57% of Revenues
§ Property Tax
• 18% of Revenues
• Upcoming Budget Assumes
2% Annual Increase
§ Sales Tax
• 11% of Revenues
• Upcoming Budget Assumes
HdL Projected Growth of 2.6%–3%
“Big 3” General Fund Revenues
§ Total Compensation 46% of General Fund Expenditures
§ Upcoming CPI Release will drive increase to salary costs § Law Enforcement Services, Fire & Emergency Services,
and Other Contract Services
§ Cost Allocation Plan - New Line Item in Each Department General Fund Expenditures
§ State Water Resources Control Board Loan
• Final payment of $131,331 in November 2026 (Wastewater Fund) §2017 Lease Revenue Bond for Community Center Project
• ~$550,000 annual payment (General Fund)
• Matures November 2039
§2020 Direct Placement Financing for Town Hall and Madison/Yount Sewer Lateral Project
• ~$350,000 annual payment (mostly General Fund)
• Matures June 2027 – unless Town Council decides to pay off early Existing Debt Service
§ Town Council Discussion and potential direction to staff § Preparation for April 2026 budget workshop
Next Steps