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
FY 2026-2027 Annual Report for the Downtown Napa Property and Business Improvement District (PBID) and Levy of Assessments
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution approving the FY 2026-2027 Annual Report for the Downtown Napa Property and Business Improvement District (“DNPBID”), levying assessments in the DNPBID, and determining that the actions authorized by this Resolution are exempt from CEQA.
Body
DISCUSSION:
The Napa Downtown Association (“NDA”) has submitted on behalf of the PBID Owners’ Association the annual budget, programs and promotional events, and roster of officers for the period July 1, 2026 to June 30, 2027, for the Downtown Napa Property and Business Improvement District (PBID). The PBID boundaries span the general area in the central Downtown Napa core and Oxbow area, along the Main Street corridor on the west side of Soscol, and along the First, Third and McKinstry Street corridors between Soscol and Silverado Trail, as shown on the map in Exhibit “A” to Attachment 1, and are split into two assessment zones, Zone 1 and Zone 2. Rates for each zone are included under Levy of PBID Assessments in this staff report.
The PBID was originally formed in 2005. It was renewed in 2010, 2015, and 2020 for additional five-year terms, and most recently in 2025 for a seven-year term with 92% ballot approval. Funds generated in one zone must be spent on promotions and activities in that particular zone. In accordance with the contract obligations contained in City Agreement 9354, “Napa Downtown Association Agreement, Management of Assessment Districts”, the NDA must prepare and file with the City an annual report which describes improvements and activities that will be performed by the NDA in the upcoming fiscal year using property taxes generated by the PBID in accordance with Streets and Highways Code Section 36650.
The City collects PBID property taxes from merchants within the PBID boundaries and pays those tax revenues to the NDA, and the NDA manages expenditures of the tax revenues for improvements and activities identified in the annual report, all under the terms of Agreement 9354.
Summary of Annual Report
A summary of the full annual report (See Exhibit “A” to Attachment 1) is as follows:
1. There have not been any boundary changes or proposed boundary changes for the 2026-2027 fiscal year. Some classifications have been changed, reflected on the use type column of the parcel list in Exhibit “B”, “Chart of Assessments to be Levied for 2026-2027.
2. The NDA plans to produce the following improvements and activities in FY 2026-2027:
Beautification, Maintenance & Infrastructure, Zones 1 and 2 $427,462.00
• Feasibility Study for Clinton Street Market Lights
• Hanging Flower Baskets on 300 Light Poles
• Christmas Holiday Lighting & Garland, Pre-Thanksgiving thru Week 1 January
• Oxbow Gateway Sign
Marketing __ ___ $213,730.99
• Ambassador Program, four 2-person teams providing personal assistance. direction and recommendations
• Sunday’s In the Park - Free Veterans Park Summer concerts
• Napa Table, Alfresco Dining down Main Street between First & Third Streets
• Production of Historic Downtown Napa Maps
• Lighted Art Festival
• Other Special Events
Administration_______________________ _ __$71,243.67
Perform day-to-day tasks and programming as directed by the PBID Owners’ Association
3. The NDA estimates it will cost $712,436.66 to manage, maintain, and promote PBID.
4. Assessments are based on the property size and use, location within Zone 1 or Zone 2, and are collected by the County via property taxes. This method was authorized under renewal of the PBID in 2025, as outlined in the Management District Plan. Assessment revenues are passed through to the City and onto the PBID. See Exhibit “sB” Chart of Assessments.
5. The carryover surplus from the 2025-2026 fiscal year is $158,554.66.
Levy of PBID Assessments
The City Council authorizes the levy of annual assessments on properties within the boundary of the PBID. Assessment rates are determined by the location, size and use of the property. If there is to be an annual increase to the assessment, those rates are calculated based on the percentage difference from year-to-year as determined by the Consumer Price Index (CPI) for All Urban Consumers, San Francisco/Oakland/San Jose Local Area Index, with a maximum annual increase of three percent. As required by the California Streets and Highways Code Section 36650 (b) (4), a chart of PBID properties showing the adjusted rates and assessments is attached as Exhibit “B”.
As noted in the attached Exhibit B, Chart of Assessments to be Levied for 2026-2027, PBID property assessments on 273 eligible properties will total $546,770. There is to be no rate increase from the prior fiscal year.
For FY 26-27, rates per property square-foot are as set forth in the Management District Plan:
Retail Non-Retail Parking Vacant
Zone 1 $0.2578 $0.1722 $0.0855 $0.0427
Zone 2 $0.0855 $0.0855 $0.0427 $0.0427
A breakdown of parcel count and projected revenue is as follows:
• Zone 1: 167 parcels
• 61% of PBID area is in Zone 1
• 66.4% of expected revenue to be generated from Zone 1: $363,546
• Zone 2: 106 parcels
• 39% of PBID is in Zone 2
• 33.5% of expected revenue to be generated from Zone 2: $183,224
Assessments levied by this action will be itemized on owners’ 2026/2027 property tax bill, collected by the Napa County Tax Assessor and forwarded to the City. The City Finance Department issues payment of these funds to the NDA/PBID Owners’ Association to fund work program.
FINANCIAL IMPACTS:
There are 25 properties in the PBID that are owned by various City entities, including the City of Napa, Housing Authority, and the Parking Authority. Twenty-one parcels contain parking lots or structures, and four are office buildings. The assessment on the City’s properties for the upcoming year will be approximately $62,460 which is part of the City’s budget.
CEQA:
City staff recommends that the City Council determine that the Recommended Action described in this Agenda Report is exempt from CEQA pursuant to CEQA Guidelines Section 15301 Existing Facilities (minor alterations of existing streets and sidewalks).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution 2026-27 PBID
EX A - Napa PBID FY2026-27 Annual Report
EX B - PBID Chart of Assessments to be Levied for FY 26/27
EX C - Napa PBID FY2025-2026 Budget to Actuals
EX D - Napa PBID FY2026-2027 Budget
NOTIFICATION:
The NDA and Napa PBID Owners’ Association were notified of this agenda item prior to the meeting date, a public hearing notice was published in the Napa Valley Register on June 4, 2026, and the agenda was posted in publicly accessible locations as required by law.