Revenue
The Town recognizes that its primary revenue sources are locally generated, especially TOT and sales tax revenue, and for the most part this revenue is largely generated by non-residents. Efforts to ensure continued reliability in these revenue sources must be maintained and to develop and diversify other revenue sources as applicable.
The Town will actively establish a practice of monitoring, auditing and collecting all locally generated taxes.
The Town will establish and maintain all user fees and charges based on the cost of providing services and shall establish, where appropriate, a cost recovery target for those programs which are subsidized by General Fund revenues. The Town will review and update, as appropriate, the Master Fee Schedule annually at the beginning of the budget development cycle.
Budgeting and Expenditures
The Town Council shall adopt an annual balanced budget effective from July 1 to June 30 each fiscal year. A balanced budget requires 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.
Fund Balance Reserves will be used only for non-recurring “one-time” and capital projects and not for on-going operations. The use of reserves must be approved by Town Council.
Use of long-term debt shall be limited to capital projects or special projects that cannot be financed from current revenues.
The Town Manager is authorized to implement the programs as approved in the adopted budget. Within a specific fund the Town Manager may transfer appropriations between categories, departments, projects and programs as needed to implement the adopted budget, as long as it does not increase the full time equivalent (FTE) personnel, increase overall appropriations, or decrease appropriations for capital outlay.
Personnel costs (salaries and benefits) will be budgeted in the Town’s primary operating funds: General Fund, Water Enterprise and Wastewater Enterprise.
The annual budget will include a nominal $45,000 Designated Contingency for non-recurring, unanticipated expenditures. The Town Manager may approve expenditures from this contingency if needed during the fiscal year. The contingency will be transferred to the appropriate account to fund the approved expenditures.
A capital outlay (fixed asset) purchase will be any single item or piece of equipment which costs more than $10,000 and has an expected useful life exceeding one year.
Regular budget reports and updates shall be presented to the Town Council to provide information on the status of the Town’s financial condition. Budget adjustments may be made during the year by Council resolution if necessary to reflect changes to revenues and/or expenditure projections.
The Town shall post on its website current budget reports and updates, sales tax and TOT reports and other financial information for the public to review.
Capital Improvements
Capital Improvement Program (CIP) projects will be funded by the following revenue sources:
Available General Fund Reserves
Available Capital Project Fund balances
Impact Fee Fund balances Water and Wastewater revenues (for Water and Wastewater projects) Grant fundings Other State and Federal funding sources as available The Town will annually develop and update a multi-year plan for capital improvements. Future capital expenditures will be projected annually for a rolling 5-year period based on projections of available funding, changes in the community and needed replacement of infrastructure.
The Town will coordinate development of the Five Year Capital Improvement Program (CIP) in advance of the development of the operating budget.
The annual funding for the current year of the Capital Improvement Plan shall be approved as part of the operating budget. Budgets are approved by project with the understanding that projects may span fiscal years and the appropriations will carry forward to the following fiscal year; the amounts carried forward will be shown in the budget for information and transparency.
Capital projects financed by bonds or other debt instruments shall be paid back within a period not to exceed the useful life of the project.
The Town Manager is authorized to implement the projects as approved in the adopted Capital Improvement Program. Within a specific fund, the Town Manager may transfer appropriations between projects as needed to implement the adopted Capital Improvement Program.
Powered by OpenGov
Town of Yountville Biennial Budget Fiscal Years 2026/2027 and 2027/2028 Town of Yountville Financial Policies
1. Policy
It is the policy of the Town of Yountville to invest public funds in a manner that will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the Town and conforming to all California laws and local statutes governing the investment of public funds.
2. Scope
This investment policy applies to all the funds and investment activities under the direct authority of the Town of Yountville as accounted for in the Annual Comprehensive Financial Report (ACFR). Policy statements outlined in this document focus on the Town of Yountville’s pooled funds, but will also apply to all other funds under the Town Treasurers’ span of control unless specifically exempted by statue or ordinance.
This policy is applicable, but not limited to, all funds listed below:
General Fund
Enterprise Funds
Special Revenue Funds
Capital Project Funds
Debt Service Funds
Agency Funds
Excluded funds are those held with a fiscal agent, which has their own specific “permitted investments” section in the bond covenants and OPEB and PRSP funds invested in a IRC section 115 irrevocable trust (see separate policy).
3. Prudence
Investments shall be made with judgment and care -- under circumstances then prevailing -- which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
The standard of prudence to be used by the Town’s investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. The Town Treasurer and/or Town Manager, acting within the intent and scope of the investment policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations that result in a loss of principal are reported to the Town Manager immediately, and to the Town Council at their next meeting addressing appropriate actions to be taken to control adverse developments.
4. Objective
The primary objectives in priority order of the Town of Yountville’s investment activities shall be:
4.1. Safety: Safety of principal is the foremost objective of the investment program. Investments of the Town of Yountville shall be undertaken in a manner that seeks to ensure that capital losses are avoided, whether from securities default, broker-dealer default, or erosion of market value. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.
4.2. Liquidity: The Town of Yountville’s investment portfolio will remain sufficiently liquid to enable the Town to meet all operating requirements that might be reasonably anticipated.
4.3. Return: The Town of Yountville’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the Town’s investment risk constraints and the cash flow characteristics of the portfolio.
Town of Yountville Biennial Budget Fiscal Years 2026/2027 and 2027/2028 Town of Yountville Investment Policy
5. Delegation of Authority
Authority to manage the Town’s investment program is derived from the California Government Code. Management responsibility for the investment program is hereby delegated to the Treasurer, who shall establish written procedures for the operation of the investment program consistent with this investment policy. Procedures shall include, but not limited to, references to: safekeeping, wire transfer agreements, collateral/depository agreements, banking services contracts, local banking preferences, and other investment-related activities. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer.
The Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinates. Delegation of authority shall expire one year from the date of adoption of this policy as required by State Law.
6. Ethics and Conflicts of Interest
The Town Council, Town Manager and Town Treasurer shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Council Members, Town Manager and Town Treasurer shall disclose to the Town Attorney any material financial interests in financial institutions that conduct business within the jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the Town’s portfolio. The Town Attorney and Treasurer shall review all disclosures made to insure there are no conflicts with any planned investment.
7. Authorized Financial Dealers and Institutions
The Treasurer will maintain a list of financial institutions and primary dealers authorized to provide investment services. Primary dealers include those that regularly report to the Federal Reserve Bank and should qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule).
All financial institutions, dealers and cash managers who desire to become qualified bidders for investment transactions must supply the Town with the following: audited financial statements, proof of National Association of Security Dealers certification when applicable, completed questionnaire and certification of having read the Town of Yountville’s investment policy and depository contracts.
8. Authorized Investments and Limitations on Investments Investment of Town funds is governed by the California Government Code Sections 53600 et seq. Within the context of the limitations, the following investments are authorized, as further limited herein:
United States Treasury Bills, Bonds, and Notes or those for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio that can be invested in this category.
1. Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.
2. Local Agency Investment Fund (LAIF) which is a State of California managed investment pool may be used up to the maximum permitted by LAIF.
3. 4. Insured savings accounts are permitted without limitations.
Investments detailed in items 5 through 10 are further restricted to 5% of the purchase value of all investments and cash accounts (the portfolio), in any one issuer name. The total value invested in any one issuer shall also not exceed 5% of the issuer’s net worth.
5. Bills of exchange or time drafts drawn on and accepted by commercial banks, otherwise known as banker’s acceptances are permitted. Banker's acceptances purchased may not exceed 180 days to maturity or 40% of the cost value of the portfolio.
6. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided by Moody’s Investor Services, Inc., Standard & Poor’s, or Fitch Financial Services, Inc. Commercial paper shall be issued by domestic corporations having assets in excess of $500,000,000 and having a “AA” or better rating on its long-term debentures as provided by Moody’s, Standard & Poor’s, or Fitch. Purchases of eligible commercial paper may not exceed 270 days to maturity nor represent more than 10% of the outstanding paper of the issuing corporation. Purchases of commercial paper may not exceed 25% of the Town’s portfolio.
7. Negotiable certificates of deposit issued by nationally or state chartered banks or state or federal savings institutions. Purchases of negotiable certificates of deposit may not exceed 30% of total portfolio.
8. Time deposits, non-negotiable and collateralized in accordance with the California Government Code, may be purchased through banks or savings and loan associations. Since time deposits are not liquid, no more than 25% of the investment portfolio may be invested in this investment type.
9. Medium Term Corporate Notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Securities eligible for investment shall be rated “AA” or better by Moody’s or Standard & Poor’s rating services. Purchase of medium term notes may not exceed 30% of the purchase value of the portfolio and no more than 5% of the purchase value of the portfolio may be invested in notes issued by one corporation.
10. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940. To be eligible for investment pursuant to this subdivision these companies shall either: (1) attain the highest ranking letter or numerical rating provided by not less than two of the three largest nationally recognized rating services or (2) have an investment advisor registered with the Securities and Exchange
11. Commission with not less than five years of experience investing in securities and obligations authorized by Government Code section 53601 and with assets under management in excess of $500,000,000. The purchase price of shares shall not exceed 15% of the investment portfolio.
12. California Asset Management Program (CAMP).
9. Ineligible Investments
The Town shall not invest any funds in inverse floaters, range notes, or interest-only strips that are derived from a pool or mortgages, or in any security that could result in zero interest accrual if held to maturity, or any other investment not listed in this policy.
10. Safekeeping and Custody
All securities owned by the Town, including collateral for repurchase agreements, shall be held in safekeeping by the Town’s custodian bank or a third party bank trust department, acting as agent for the Town under the terms of a custody or trustee agreement executed by the bank and by the Town. All securities will be received and delivered using standard delivery-versus-payment (DVP) procedures.
11. Percentage Limitations
Where a section specifies a percentage limitation for a particular category or investments, that percentage is applicable only at the date of purchase. Where a section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the Town Council has granted express authority to make that investment either specifically or as a part of an investment program approved by the Town Council no less than three months prior to the investment.
12. Reporting Requirements
The Treasurer shall annually render to the Town Council a statement of investment policy, which the Council shall review and approve at a public meeting. The Council at a public meeting shall also review and approve any changes to the policy.
The Treasurer shall render a monthly transaction report to the Town Council. The Treasurer shall render a quarterly investment report to the Council within 60 days after the end of the subject quarter. They year end quarterly report shall be available after the audit is completed.
The quarterly report shall include for each individual investment:
Description of investment instrument
Issuer name Maturity date
Purchase price
Par value
Current market value and the source of the valuation. The quarterly report also shall; (I) state compliance of the portfolio to the investment policy, or manner in which the portfolio is not in compliance, (II) include a description of any of the Town’s funds, investments or programs that are under the management of contracted parties, including lending programs, and (III) include a statement denoting the ability of the Town to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may not be available.
Powered by OpenGov
The Town recognizes that it may need to enter into long-term financial obligations to meet the demands of providing a high-quality level of government services to our community. The following long-term debt policy sets the considerations for issuing debt and provides guidance in the timing and structuring of long-term debt commitments by the Town.
General Practices
The Town will strive to maintain good relations with credit rating agencies, investors of the Town’s long-term financial obligations and those in the financial community that participate in the Town’s financings. The Town also will strive to maintain and improve its bond rating in order to minimize borrowing costs and preserve access to credit.
Bond issue proposals are to be accompanied by an analysis defining how the new issue, combined with current debt, impacts the Town’s debt capacity and conformance with Town debt policies. Such analysis shall include identification of the funding source, an assessment of the ability to repay the obligation, the impact on the current budget, commitments to future budgets, maintenance and operational impact of the facility or asset and the impact on the Town’s credit rating, if any.
Town Council must review such analysis, including existing debt level, ability to pay debt service, impact on Town services, and make a finding that use of debt is appropriate.
Debt service costs (COP, Lease Purchase Agreements and other contractual debt which are backed by General Fund Operating Revenues) are not to exceed 25% of the Town’s General Fund operating revenues.
Projects financed by a non-general fund revenue source such as utility rate revenue and specific voter approved authorizations such as Measure A Sales Tax for flood control are not subject to the 25% of general fund revenue maximum debt service limit.
The Town will consider the issuance of long-term obligations under the following conditions:
The Town will use debt financing only for one-time capital improvement projects and specific nonrecurring equipment purchases, and only under the following circumstances: When the project is included in the Town’s adopted five-year capital improvement program (CIP) and is in conformance with the Town’s adopted General Plan. When the project is not included in the Town’s adopted five-year capital improvement program (CIP), but the project is an emerging critical need whose timing was not anticipated in the five-year capital improvement program, or it is a project mandated by State or Federal requirements. When the project’s useful life, or the projected service life of the equipment, will be equal to or exceed the term of the financing. When there are designated General Fund revenues sufficient to service the debt, whether from project revenues, other specified and/or reserved resources, or infrastructure cost-sharing revenues.
Debt financing (other than tax and revenue anticipation notes) is not considered appropriate for any recurring purpose such as current operating and maintenance expenditures.
The Town will follow all State and Federal regulations and requirements related to bonds and debt financing instruments regarding bond provisions, issuance, taxation and disclosure.
Costs incurred by the Town, such as bond counsel and financial advisor fees, printing, underwriter’s discount, and project design and construction costs, will be charged to the bond issue to the extent allowable by law.
The Town will monitor compliance with bond covenants and adhere to federal arbitrage and disclosure regulations.
The Town shall continually review outstanding obligations for opportunities to achieve debt service savings through refunding and shall pursue refinancing when economically feasible and advantageous.
Town of Yountville Biennial Budget Fiscal Years 2026/2027 and 2027/2028 Town of Yountville Use of
Long-Term Debt Policy
Powered by OpenGov
Town Council initially adopted an OPEB funding policy and multi-year financing plan approving a funding rate schedule with the adoption of Resolution Number 2962-08 on June 24, 2008. The policy established the OPEB funding allocation percentage, calculated on full-time salaries, and each fiscal year considered allocating additional allocations to fund the Town’s OPEB liability.
The Town Council approved an updated OPEB funding policy with the adoption of Resolution Number 3006-11 on December 6, 2011 approving the following payroll allocation rates and funding:
Fiscal Year 2012/13: 8% of full-time salaries.
Fiscal Year 2013/14: 9% of full-time salaries.
Fiscal Year 2014/15: 10% of full-time salaries.
Town Council may consider approval of additional funding allocations to OPEB at the time unassigned funds become available.
In June 2014 Council approved Resolution Number 3188-14 adopting the current OPEB funding policy. The policy statement is to fully fund the ARC (annual required contribution) each fiscal year. The policy establishes the following procedure:
Each fiscal year staff will present the proposed budget with the payroll allocation funding rate required to fully fund the ARC.
Town Council will review and approve and/or modify the rate during the budget review process each year.
Powered by OpenGov
Town of Yountville Biennial Budget Fiscal Years 2026/2027 and 2027/2028 Town of Yountville OPEB (Other PostEmployment Benefits) Funding Policy (Adopted June 17, 2014 by Resolution Number 3188-14)
Overview
The purpose of this Investment Guidelines document (IGD) is to assist you and your Portfolio Manager in effectively supervising, monitoring and evaluating the investment of your portfolio. Your investment program is defined in the various sections of the IGD by:
Stating in a written document your attitudes, expectations, objectives and guidelines for the investment of all assets.
Setting forth an investment structure for managing your portfolio. This structure includes various asset classes, investment management styles, asset allocation and acceptable ranges that, in total, are expected to produce an appropriate level of overall diversification and total investment return over the investment time horizon.
Encouraging effective communications between you and your Portfolio Manager.
Complying with all applicable fiduciary, prudence and due diligence requirements experienced investment professionals would utilize, and with all applicable laws, rules and regulations from various local, state, and federal entities that may impact your assets Diversification
Your Portfolio Manager is responsible for maintaining the balance between fixed income and equity securities based on the asset allocation.
The following parameters shall be adhered to in managing the portfolio:
Fixed Income
The long-term fixed income investments (greater than seven-years in maturity) shall constitute no more than 25%, and as little as 0% of the total Plan assets.
The intermediate-term fixed income investments (between three-seven years in maturity) shall constitute no more than 60%, nor less than 25% of the total Plan assets.
The high-yield portion of the Plan shall constitute no more than 10%, and as little as 0% of the total Plan assets.
The convertible bond exposure shall constitute no more than 10%, and as little as 0% of the total Plan assets.
The short-term fixed income investments (between one-three years in maturity) shall constitute no more than 25%, and as little as 0% of the total Plan assets.
Equity
The domestic large cap equity investments of the Plan shall constitute no more than 45% nor less than 15% of the total Plan assets.
The domestic mid-capitalization equity investments of the Plan shall constitute no more than 10%, and as little as 0% of the total Plan assets.
The domestic small capitalization equity investments of the Plan shall constitute no more than 15% nor less than 0% of the total Plan assets.
The international equity investments of the Plan shall constitute no more than 15% and as little as 0% of the total Plan assets.
The real estate investments of the Plan shall constitute no more than 10% and as little as 0% of the total Plan assets.
Permitted Asset Classes and Security Types
The following asset classes and security types have been approved by HighMark for use in client portfolios:
Asset Classes
Fixed Income
Domestic Bonds
Non-U.S. Bonds
Equities
Domestic
Non-U.S.
Emerging Markets
Real Estate Investment Trust (REITs)
Cash and Cash Equivalents
Town of Yountville Biennial Budget Fiscal Years 2026/2027 and 2027/2028 Town of Yountville OPEB Trust Fund Detailed
Information For Investment Guidelines
Document
(Adopted June 21, 2011 by Resolution Number 2974-11)
Security Types
Equity Securities
Domestic listed and unlisted securities
Equity and equity-related securities of non-US corporations, in the form of American Depository Receipts (“ADRs”) Equity Mutual Funds
Large Cap Core, Growth and Value Mid Cap Core, Growth and Value Small Cap Core, Growth and Value
International and Emerging Markets
REITs
Exchange Traded Funds (ETFs)
Fixed Income Securities
Government/Agencies Mortgage Backed Bonds
Corporate Bonds and Notes
Fixed Income Mutual Funds
Corporate
Government
High Yield
International and Emerging Market
Convertible
Preferred
Closed end funds
Cash and Cash Equivalents Money Market Mutual Fund
Commercial Paper
CDs and Bankers Acceptance
Prohibited Assets
Precious metals
Venture Capital
Short sales
Purchases of Letter Stock, Private Placements, or direct payments Leveraged Transactions
Commodities Transactions Puts, calls, straddles, or other option strategies, Purchases of real estate, with the exception of REITs
Derivatives, with exception of ETFs
Rebalancing Procedures
From time to time, market conditions may cause your asset allocation to vary from the established target. To remain consistent with the asset allocation guidelines established by this Investment Guidelines document, your Portfolio Manager will rebalance the portfolio on a quarterly basis.
Duties and Responsibilities of Portfolio Manager
Your portfolio manager is expected to manage your portfolio in a manner consistent with this Investment Guidelines document and in accordance with State and Federal law and the Uniform Prudent Investor Act. HighMark Capital Management is a registered investment advisor and shall act as such until you decide otherwise.
Your portfolio manager shall be responsible for: Designing, recommending and implementing an appropriate asset allocation consistent with the investment objectives, time horizon, risk profile, guidelines and constraints outlined in this statement.
Advising the committee about the selection of and the allocation of asset categories.
Identifying specific assets and investment managers within each asset category. Monitoring the performance of all selected assets. https://controlpanel.opengov.com/stories/townofyountvilleca/story/622a471a8227bd15b6d2a076/preview Recommending changes to any of the above.
Periodically reviewing the suitability of the investments, being available to meet with the committee at least once each year, and being available at such other times within reason at your request.
Preparing and presenting appropriate reports.
Informing the committee if changes occur in personnel that are responsible for portfolio management or research.
You shall be responsible for:
The oversight of the investment portfolio.
Providing your portfolio manager with all relevant information on the Plan, and shall notify him or her promptly of any changes to this information.
Advising your portfolio manager of any change in the Plan’s circumstances, such as a change in the actuarial assumptions, which could possibly necessitate a change to your overall risk tolerance, time horizon or liquidity requirements; and thus would dictate a change to your overall investment objective and goals for the portfolio. Monitoring performance by means of regular reviews to assure that objectives are being met and that the policy and guidelines are being followed.
Communication
As a matter of course, your portfolio manager shall keep you apprised of any material changes in HighMark Capital’s outlook, recommended investment policy and tactics. In addition, your portfolio manager shall meet with you no less than annually to review and explain the portfolio’s investment results and any related issues. Your portfolio manager shall also be available on a reasonable basis for telephone communication when needed.
Any material event that affects the ownership of HighMark Capital Management or the management of the portfolio must be reported immediately to you.
Disclosures
Union Bank N.A. and HighMark Capital Management, Inc. are wholly owned subsidiaries of UnionBanCal Corporation. Investments are not deposits or bank obligations, are not guaranteed by any government agency, and involve risk, including loss of principal Powered by OpenGov
Background
Fund balance is a government accounting term that describes the difference between a government’s assets and its liabilities. That difference (i.e., assets in excess of liabilities) is a measure of a government’s additional financial capacity beyond the revenues that it raises each year. A local government should define how much fund balance (additional capacity) it will strive to maintain to: A) be prepared for unplanned, unavoidable financial losses, like natural disasters or recessions; B) have capacity for large, planned expenditures that are too large to be easily accommodated within a local government’s annual budget.
Not all of a local government’s assets are easily converted into cash that can be used should the need arise. Therefore, this policy only concerns the portion of fund balance that can practically and legally be converted into cash, should the need arise. This portion of fund balance is known as the “unrestricted” portion of fund balance.
Purpose
The purpose of this policy is to establish the Town’s formal commitment that a specific amount of the Town’s fund balance be set aside specifically for emergency contingencies and to offset other unplanned, unavoidable losses. It also provides guidelines for the acceptable uses of fund balance and authorization to use fund balances. The amount set aside by this policy is also known as the Town’s General Fund Reserve.
General Fund Reserve Fund and Acceptable Uses
The Town will maintain a fund balance sufficient to allow the Town to respond quickly and decisively to unplanned, unavoidable financial losses. Examples include, but are not limited to natural catastrophes, human-caused disasters, and recessions. The Town commits to holding reserves equal to a minimum of 35% of annual General Fund expenditures. This is intended to provide sufficient coverage to the Town for risks the Town is exposed to and also to cover the Town’s obligations to maintain the minimum amount necessary for retention associated with commercial insurance the Town purchases.
The General Fund Reserve is meant to address unexpected, nonrecurring costs. The General Fund Reserve should not be used for recurring annual operating costs. An exception is poor economic conditions or events that disrupt the Town’s revenues for an extended period of time. In such cases, General Fund Reserve fund balances may be used to provide short-term relief so that the Town can restructure its operations in an orderly manner.
The General Fund Reserve is intended to help the Town address unplanned, unavoidable costs or revenue losses. Below are two categories of potential uses of the reserve that this policy authorizes; Contingency – for unanticipated costs or revenue shortfalls that are experienced through a budget year. Also for one-time projects, programs, or extraordinary events that require a use of reserves.
Emergency – to cover a declared state, federal or local emergency as defined by the Yountville Municipal Code section 2.52.020.
Authority to Use General Fund Reserve
The Town Manager may propose the use of the Contingency category of the General Fund Reserve to the Town Council and the Town Council will vote to provide or withhold authorization. This provision should not be interpreted to prevent the Town Manager from taking emergency actions as may be necessary to protect the Town and that are in the Manager’s existing authority.
Use of the Emergency category of the General Fund Reserve requires a declaration of state, federal or local emergency as defined by the Yountville Municipal Code section 2.52.020 and must be approved via Resolution of the Town Council.
Administration of General Fund Reserve Fund Balance
The Town’s Finance Department will conduct an annual analysis to determine if the Town is likely to stay at or above the minimum target level of General Fund Reserve fund balance.
If the minimum General Fund Reserve fund balance is not likely to be maintained during the analysis period, Town finance staff will prioritize replenishing the reserve fund in the next budget cycle and develop a plan to bring the General Fund Reserve fund balance to the desired amount. This plan will be offered to the Town Council for consideration.
If the General Fund Reserve fund balance exceeds the minimum during the analysis period, the Town may spend the excess reserves.
Reserves should be treated as one-time revenue. A one-time revenue should be used for a nonrecurring expenditure. A nonrecurring [1]
[2]
Town of Yountville Biennial Budget Fiscal Years 2026/2027 and 2027/2028 Town of Yountville Fund Balance Policy
expenditure should not create an unaffordable obligation in future years. Examples of nonrecurring expenditures that the Town Council may assign excess reserves toward include paying down debts, refurbishing a capital asset, or transferring into the Town’s Capital Projects Fund for future capital projects.
Fund Balance Set Aside for Known Future Spending
The General Fund Reserve is for emergency declarations, one-time costs, and unplanned financial losses. In addition to this, there are future costs that are known and planned but are not due in the current fiscal year. Certain expenditures are large enough that it would place a large strain on the budget to fund within a single year. Fund balance allocations within the General Fund are a mechanism to accumulate funds over multiple years so that the Town can more easily cover these costs when the time comes. The Town has established the following to pay for known future spending.
General Fund Budget & Legal Contingency Allocation
The Town Council may assign a specific amount to be reserved for future appropriations to fund unexpected costs, revenue shortfalls, as well as legal and litigation costs that were not anticipated at the adoption of the Town’s operating budget. As of December 4, 2018, this amount has been established at 5% of planned expenditures.
General Fund Leave Buy Out Allocation
The Town Council may assign a specific amount to be reserved for future appropriations to fund unanticipated costs related to covering costs of employees retiring and or separating from the Town to cover funding the cost of accrued leave (management and vacation leaves).
Reporting and Recording of Fund Balance
The Town’s finance staff will report and record all fund balances in accordance with current accounting rules. Staff will observe any and all legal and contractual obligations of the Town in the way staff administers accounting policies. Further, the different fund balance uses described in this report should be easily distinguishable in reports produced by staff. [1] The Governmental Accounting Standards Board (GASB) defines how local governments should report fund balance. Here we are drawing a distinction between the “non-spendable and “restricted” categories defined by GASB and the “committed,” “assigned” and “unassigned” categories. The first two categories are practically or legally impractical or impossible to convert to cash to support near-term spending. So, when consider how much fund balance a government should maintain these two categories should be excluded from consideration. The last three categories are collectively known as “unrestricted” fund balance. [2] The Town is a member of CIRA (California Intergovernmental Risk Authority) for purposes of liability and claims coverage. The Town’s policy coverage requires a minimum reserve balance of $30,000.
Powered by OpenGov
Historical Background
The Town of Yountville operates both water and wastewater utility enterprise fund operations which serve the residents of the Town and, in the case of the water enterprise fund, an additional 32 accounts located along Yountville Cross Road. Enterprise Fund operations are designed by nature to operate more like a private sector business model as compared to general government services. For the past decade the Town has operated its water and wastewater utility enterprise funds in a manner which included a significant General Fund subsidy averaging $300,000 per year to cover water operating expenses and capital project expenses for both the water and wastewater utility enterprise funds.
On February 10, 2011 the Town Council adopted a five (5) year phased rate schedule that was designed to end the General Fund subsidization of these enterprise funds. The Town Council issued a policy statement that the enterprise funds should no longer be subsidized and requested a formal policy be brought back to the Council.
Purpose
The Town will establish Utility Enterprise Funds for Town services when the intent of the Town is that all costs of providing the service shall be recovered primarily through ratepayer charges.
General Policy Practices
Enterprise Funds will be established for Town-operated utility services such as the water and wastewater operations.
Enterprise Fund expenditures will be established at a level sufficient to properly maintain the fund’s infrastructure and provide for necessary capital improvements.
The Town Council will review and adopt utility rates as needed to appropriately cover the costs of all operations, including maintenance, depreciation, capital and debt service requirements, reserves as established by Town Council policy, and provide for an adequate level of working capital
Enterprise Fund services will establish and maintain reserves for general contingency and capital purposes consistent with those maintained for general governmental services.
Revenue bonds shall be issued only when projected operating revenues and reserves are insufficient for the timely completion of enterprise capital projects.
Town Council shall continue the five (5) year phased utility rate increase for water and wastewater approved on February 10, 2011 which is designed to end General Fund subsidy and operating deficits of each enterprise fund over the next five (5) years.
Powered by OpenGov
Town of Yountville Biennial Budget Fiscal Years 2026/2027 and 2027/2028 Town of Yountville Water & Wastewater Utility
Enterprise Fund Rate Philosophy
(Adopted June 21, 2011 by Resolution Number 2974-11)
Background
The Town has established a reasonable water supply through a combination of its long-term supply contract with the Californian Veterans Home for use of Rector Reservoir water and the completion of the Yountville Municipal Water Well to meet the community’s annual water needs. However, the Town recognizes that it may need to purchase additional water supply in long-term drought situations and has established this Drought Water Reserve Bank from the sale of its State Water Supply surplus water rights to potentially fund the purchase of drought supply water. The following policy sets the considerations for use of the Drought Water Reserve Bank by the Town.
General Practices
The Town will continue to develop and implement reasonable water conservation programs and educational programs to educate residential and business customers on how to use less water.
The Town will evaluate future water conservation rebate programs to see if their implementation may be appropriate. Continuation of the ultra low flow toilet and water saving appliance program and implementation of turf replacement with drought tolerant and native plants and alternative irrigation systems are examples of how to reduce water consumption are possibilities.
Town will review, update if necessary, and maintain a water usage pricing structure which encourages water conservation as allowed by state law.
The Town will implement voluntary water rationing and/or increase water rates to reduce water usage and evaluate what impact those mechanisms may have had on water consumption prior to use of mandatory water rationing practices and/or purchase of additional drought water supply.
Town Council must review such analysis, including existing available water resources, implementation of advisory and/or mandatory water conservation practices, available water production from emergency water well, and impact on Town services, and make a finding that use of drought water bank to purchase additional water supply is appropriate.
The purpose of the initial deposit amount into the Drought Water Reserve Bank is to provide future Town Council’s with available resources to make immediate single year drought supply water purchases on the open market.
Any use of the Drought Water Reserve Bank by the Town Council will require implementation and adoption of a plan to replenish the Bank by the same amount as used to purchase drought water supply so that the fund is available in the event of a future drought situation.
The Town will consider use of the Drought Water Reserve Bank under the following conditions:
The Town may use its Drought Water Reserve Bank for the purchase of additional water supply under the following circumstances:
The Town Council has declared a local Water Emergency after evaluating local water supply with needs in accordance with the Town Code, Chapter 13.24, Water Shortage Emergencies, Sections 13.24.020 through 13.24.050, or as may be amended in the future.
The Town Council has first implemented reasonable voluntary water conservation and rationing measures in accordance with Chapter 13.20, Water conservation or as may be amended in the future.
The Town Council has implemented mandatory water rationing program if appropriate.
The Town Council has developed and implemented a temporary water rate increase sufficient to replenish the amount of the draw down against the Drought Water Reserve Bank so that the Bank is available for future use if necessary.
The Town Council may use the interest earnings from the Drought Water Reserve Bank to annually fund rebate programs (existing or new programs) that help to reduce overall municipal water usage by the customer.
The Town Council may use interest earnings and fund balance from the Drought Reserve Bank to make water utility capital projects possible and reduce the impact to the rate payer while maintaining a strong fund balance.
The Town Council may use the fund to pay for capital construction cost for water projects which are designed for the purpose of increasing the Town’s water storage capacity or increase water production to meet drought water supply needs.
The Town shall continually review and work with its partner City of Napa to develop opportunities to achieve reduced water consumption through implementation of new technology, community education and implementation of appropriate water conservation programs when economically feasible and advantageous.
Powered by OpenGov
Town of Yountville Biennial Budget Fiscal Years 2026/2027 and 2027/2028 Town of Yountville Use of Drought Water Reserve
Bank Policy
(Adopted December 5, 2017 by Resolution Number 17-3448) Historical Background
The Town of Yountville operates both water and wastewater utility enterprise fund operations which serve the residents and business community of the Town, and, in the case of the water enterprise fund, an additional 32 accounts located along Yountville Cross Road.
Enterprise Fund operations are designed by nature to operate more like a private sector business model as compared to general government services which are funded by the General Fund.
On February 10, 2011, the Town Council adopted a five (5) year phased rate schedule that was designed to end the General Fund subsidization of these enterprise funds. The Town Council issued a policy statement that the enterprise funds should no longer be subsidized and requested a formal policy be brought back to the Council. For the prior decade the Town had operated its water and wastewater utility enterprise funds in a manner which included a significant General Fund subsidy averaging more than $300,000 per year to cover water operating expenses and capital project expenses for both the water and wastewater utility enterprise funds.
Due to strong overall management of revenues and controlling expenditures, the Town’s fiscal condition has improved significantly since 2011. The Town Council has been disciplined with its financial fund management and principally through use of the year end Unassigned Fund Balance allocation process the Town has been able to incrementally increase funding for its Emergency Reserve Fund, Revenue Stabilization Fund, and Capital Projects Fund 50, and to establish irrevocable OPEB and Pension UAL Reserve Funds, establish and fund Fleet & Equipment Reserve Funds, and set aside funding to support for affordable housing. On October 18, 2022, the Town Council created the Water and Wastewater Utility Enterprise Capital Projects Restricted Fund which could be funded by allocations from the General Fund Unassigned Fund Balance allocation process.
Purpose
Funds may only be used for the purpose of paying down utility enterprise fund capital debt expenses or to fund the costs of projected utility enterprise fund capital costs only and may not be used to pay for annual operating costs.
General Practices
Enterprise Funds will be established for Town-operated utility services such as the water and wastewater operations.
Enterprise Capital Fund expenditures will be established at a level sufficient to properly maintain infrastructure and provide for necessary capital improvements.
The Town Council will review and adopt utility rates as needed to appropriately cover the costs of all operations, including maintenance, depreciation, capital and debt service requirements, reserves as established by Town Council policy, and provide for an adequate level of working capital.
As a part of its periodic five (5) year phased utility rate review process, the Town Council may allocate and transfer funds from the General Fund Water and Wastewater Utility Enterprise Capital Projects Restricted Fund for the purposes of paying off debt or to pay for planned enterprise fund capital projects identified in the next five (5) year of planned capital projects thereby reducing impact to ratepayers.
Enterprise Fund services will establish and maintain reserves for general contingency and capital purposes consistent with those maintained for general governmental services.
Revenue bonds shall be issued only when projected operating revenues and reserves are insufficient for the timely completion of enterprise capital projects.
General Fund revenues are not to be used for annual operating expenses for the Water and Wastewater Utility Enterprise Funds.
Funding and Replenishment
This restricted fund could receive funding through a re-allocation of prior year General Fund Unassigned Fund Balance upon completion of the annual audit process if funds are available. Future contributions would either grow the existing fund balance or replenish funds that were used.
Powered by OpenGov
Town of Yountville Biennial Budget Fiscal Years 2026/2027 and 2027/2028 Town of Yountville Use of Water and Wastewater
Utility Enterprise Capital Projects Restricted
Fund Policy
(Adopted October 18, 2022 by Resolution Number 22-4155)