To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Community Resources & Development Director
Prepared By: Jennifer Owen, Economic Development Program Coordinator
TITLE:
Title
Napa Tourism Improvement District FY 2026-27 Budget and Work Plan
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution approving the Napa Valley Tourism Improvement District City of Napa Local Governing Committee Budget and Work Plan for Fiscal Year 2026-27.
Body
DISCUSSION:
Background
The Napa Valley Tourism Improvement District (“NVTID” or the “District”) is an assessment district that funds marketing and sales promotion efforts for assessed lodging businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The District was created in 2010 for a five (5) year term, renewed in 2015 for a ten (10) year term, and subsequently renewed in 2025 for a ten (10) year term through FY 2035.
The City Council consented to the formation of the countywide District within the City limits on March 16, 2010, and consented to the extended term on February 21, 2017 and most recently on November 19, 2024.
The City of Napa collects the two percent District assessment for lodging businesses within the City and transmits 74% of the revenue to Napa County (who transmits the funds to Visit Napa Valley, a non-profit corporation charged with managing the overall non-local destination tourist promotion and marketing activities). From the remaining revenues, the City retains 1% for administration costs and deposits the remaining 25% into the Napa Tourism Improvement District (“Napa TID”) fund. The Napa TID local funding is designed to support the local activities which promote and enhance locally based tourism efforts.
The Napa TID fund is managed by the City’s Economic Development Division, with the oversight of the Napa TID Local Governing Committee (“LGC”), as defined by the Management District Plan (“MDP”). The LGC is comprised of seven members; five of whom represent the lodging industry, one member who represents the City, and one member who holds an at-large seat representing a visitor-serving or destination-marketing entity. The current LGC membership consists of the following seven individuals:
• Chair, and Lodging Representative, Sara Brooks, Napa River Inn
• Co-Chair, and Lodging Representative, Jenny Toomer, River Terrace Inn
• Chair-Elect: Rachel Wilson, Napa Valley Marriott
• Lodging Representative, Maria Pelayo, Andaz Napa
• Lodging Representative, David Jessup, Senza
• At Large Representative, Bill La Liberte, Napa Downtown Association
• City Representative, Julie Lucido, Assistant City Manager
Annual Napa TID Budget and Work Plan
Each year the LGC works with City staff to develop a proposed budget and work plan for City Council consideration and approval. This proposed budget and work plan is developed to promote and enhance the City of Napa, with the specific objective of increasing hotel stays, a main requirement of the MDP, and was approved by the LGC at a Special Meeting on April 27, 2026.
Napa TID Revenue
The City’s Finance Department, in collaboration with Visit Napa Valley, studies Napa TID revenue trends and produces a projected revenue amount that the City of Napa expects to collect in the new fiscal year (see Exhibit “A” to Attachment 1). The table below shows the five-year Napa TID Revenue and percent change from the prior year, including the projected FY 2026-2027.
|
Year |
Napa TID Revenue |
Percent Change |
|
FY 2022-2023 |
$1,195,937.84 |
+24.31% |
|
FY 2023-2024 |
$1,206,807.49 |
+0.91% |
|
FY 2024-2025 |
$1,298,407.10 |
+7.59% |
|
FY 2025-2026 (projected) |
$1,237,000.00 |
-4.84% |
|
FY 2026-2027 (projected) |
$1,324,000.00 |
+6.79% |
FY 2026-2027 Budget and Workplan
The proposed corresponding Budget and Workplan (Exhibit A to Attachment 1) includes the following categories and expenditures:
• Administrative Support: $46,122. This category supports staff time associated with administration, coordination, financial oversight, reporting, and management of TID activities and programs. The proposed amount is consistent with the prior fiscal year’s budget.
• Materials & Services: $32,000. This category includes professional services and operational expenses necessary to implement TID categories. The proposed amount is consistent with the prior fiscal year’s budget.
• Advertising and Marketing: $862,000. This category funds destination marketing, advertising campaigns, branding initiatives, digital advertising, DoNapa website maintenance, public relations, and related tourism promotion activities. It includes major marketing agency contracts and a part-time Marketing Manager to support marketing planning and oversight. The proposed amount is a $52,000 increase from the prior fiscal year’s budget.
• Grants to Other Organizations: $400,000. This category provides funding support for partner organizations, tourism-related initiatives, and community programs that align with TID goals and promote visitation and economic activity. Grant examples include the Lighted Art Festival, Napa Marathon, and Napa Streamfest. The proposed amount is consistent with prior fiscal year’s budget.
FINANCIAL IMPACTS:
There is no financial impact on the City’s General Fund. The Napa Tourism Improvement District (NTID) was formed by Napa County through a two percent assessment of gross room rentals received from lodging businesses throughout the county. NTID funds are to be expended for tourism promotion in accordance with the approved Management District Plan. The City retains 25 percent of the assessment revenue collected within the City limits, to be used for promotion purposes as set forth in an annual work plan and budget prepared by the Napa TID and approved by City Council. The City also retains one percent of the assessment revenue as an administrative fee. No activities implemented as a part of the Napa TID budget are supported by the General Fund.
CEQA:
The Community Resources and Development Director has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution Adopting Napa TID FY 2026-2027 Budget and Work Plan
EX A - Napa TID FY 2026-2027 Budget and Work Plan
NOTIFICATION:
The Napa Tourism Improvement District Local Governing Committee has been notified of this agenda item and an agenda has been posted in publicly accessible locations as required by law.