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
Downtown Business Promotions Tax Area - FY 2026-2027 Levy of Taxes
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution levying taxes in the Downtown Business Promotions Tax Area (DBPTA) for FY 2026-2027 in accordance with Napa Municipal Code Chapter 3.28; and determining that the actions authorized by this resolution are exempt from CEQA.
Body
DISCUSSION:
On June 2, 2026, the City Council adopted a Resolution of Intention to approve the FY 2026-2027 Annual Report and Budget for the Downtown Business Promotions Tax, authorized the City Clerk to schedule a public hearing on June 16, 2026, to levy the business license taxes in accordance with Napa Municipal Code Chapter 3.28. In accordance with the State of California Streets and Highways Code Sections 36000, et seq., and per the terms of City Agreement 9354, “Napa Downtown Association Agreement, Management of Assessment Districts,” with the Napa Downtown Association (NDA) a public hearing notice has been published and posted to notify the public of the availability for review of all documents relating to the improvements and activities of the Downtown Business Promotions Tax Area. The tax rate is set by ordinance and provided for in the Napa Municipal Code Chapter 3.28 “Napa Parking & Business Improvement Area No. 1, Benefit Zone 2”: a promotional marketing tax equal to 40 percent of the business license fee. This revenue is collected by the City and managed by NDA for administrative and marketing purposes to benefit the businesses within the DBPTA.
FINANCIAL IMPACTS:
The recommended action results in no financial City obligation or impact to its General Fund, but there are costs related to City staff time for financial accounting and preparation of staff reports and resolutions. The DBPTA tax revenue, equal to 40 percent of the business license tax, is collected by the Finance Department and remitted monthly to the NDA.
CEQA:
City staff recommends that the City Council determine that the Recommended Action is exempt from CEQA, pursuant to CEQA Guidelines Section 15323 (normal operation of facilities for public gatherings). City staff also recommends that the City Council determine, on a separate and independent basis, that the Recommended Action is exempt from CEQA pursuant to CEQA Guideline 15301 as the operation and maintenance of an existing business area with negligible expansion of use.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - FY 2026-2027 Annual Report DBPTA
ATCH 2 - FY 2026-2027 Budget for the DBPTA
NOTIFICATION:
City staff notified the Napa Downtown Association of this agenda item before the meeting date and a public hearing notice was published in the Napa Valley Register on June 4, 2026.