To: Honorable Mayor and Members of City Council
From: Steve Potter, City Manager
Prepared By: Jessie Gooch, Budget Officer
TITLE:
Title
City of Napa FY 2023/24 and FY 2024/25 Proposed Budget Public Hearing
LABEL
RECOMMENDED ACTION:
Recommendation
Provide direction to staff to finalize the proposed FY 2023/24 and FY 2024/25 Budgets and present that document for final review and approval at the regularly scheduled meeting on June 20, 2023.
Body
DISCUSSION:
On April 4, 2023, the Council was provided an overview of the proposed list of Capital Improvement Program projects. On April 18, 2023, the Council received an overview of the FY 2023/24 and FY 2024/25 General Fund, Solid Waste and Recycling Fund, and Water Fund Proposed Budgets, along with proposed budget decision packages. The full proposed budget is now presented for City Council consideration and public input.
The Proposed City of Napa Budget for Fiscal Years 2023/24 and 2024/25 provides the City of Napa’s financial plan for City activities and programs for the next two years beginning July 1, 2023. The budget identifies the City’s organizational structure, includes program descriptions, provides an overview of the City’s financial condition and summarizes budget priorities and issues.
The Proposed Budget for all City funds totals $326.1 million in Fiscal Year 2023/24 and $310.7 million in FY 2024/25. The goal of this budget is to balance the need to be responsive in providing services to residents, businesses and visitors in our community with the need to operate within the limitation of available resources. The City Council priorities discussed in the January 2023 public workshop were a key consideration during development of these two annual budgets. The Proposed Budget reflects the following City Council priorities:
• Implementation of the General Plan
• Housing and Homelessness
• Climate Action & Sustainability
• Public Infrastructure
• Traffic Safety for All Modes of Travel
The proposed General Fund operating budget totals $122.1 million in Fiscal Year 2023/24 and represents a 5% increase in spending compared to the Fiscal Year 2022/23 budget. The FY 2024/25 budget totals $125.5 million, an increase of 2.8% from FY 2023/24. Sales Tax and Transient Occupancy Tax have both shown strong growth, and will continue to increase in the proposed budget. However, the increase in expenditure budget exceeds the growth in operating revenue. In order to balance the budget, $2.5 million of Excess ERAF has been budgeted in the General Fund to increase revenue in each fiscal year. Typically, this revenue source is budgeted in the Non-Recurring General Fund to be used for one-time projects. With these adjustments, the General Fund operating budget is balanced with sufficient revenue available to fund budgeted expenditures.
In addition to the General Fund, the Proposed Budget includes a number of other funding sources including Special Revenue Funds, Capital Project Funds, Proprietary Enterprise Funds and Internal Service Funds. The budget document also includes information on the Housing Authority of the City of Napa.
The Proposed Budget provides funding for 515 full-time positions and 5 limited-term positions in Fiscal Year 2023/24, and 516 full-time positions and 2 limited-term positions in Fiscal Year 2024/25. A detailed listing of current authorized staffing is provided in Appendix A in the Proposed Budget document, and includes the additions/deletions and new positions requested in the budget decision packages as listed in Appendix D.
The Capital Improvement Program budget includes additional funding for new and active projects totaling $32.4 million in FY 2023/24 and $20.9 million in FY 2024/25.
The Proposed Budget for Fiscal Years 2023/24 and 2024/25 provides funding to maintain General Fund and CIP reserves in accordance with City Council policies.
FINANCIAL IMPACTS:
None by this action. The purpose of the Public Hearing is to allow an opportunity for the public to comment on the proposed FY 2023/24 and FY 2024/25 budgets and for the City Council to offer any changes prior to the presentation of the Budget for final approval at the next City Council meeting.
CEQA:
The City Manager has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Proposed Operating & Capital Budget for Fiscal Years 2023/24 and 2024/25 (link to <https://www.cityofnapa.org/ArchiveCenter/ViewFile/Item/205>)
NOTIFICATION:
Publication of Legal Ad in the Napa Valley Register on Friday May 26th, 2023.