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 2026-27 Annual Report and Budget
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution approving the FY 2026-2027 Annual Report and Budget for the Downtown Business Promotions Tax Area; authorizing the City Clerk to schedule a Public Hearing on June 16, 2026 to levy taxes in accordance with Napa Municipal Code Chapter 3.28; and determining that the actions authorized by this resolution are exempt from CEQA.
Body
DISCUSSION:
The Napa Downtown Association (“NDA”) has submitted the annual budget, programs and promotional events, and roster of officers for the period July 1, 2026 to June 30, 2027, for the Downtown Business Promotions Tax Area (“DBPTA”), which is identified in the Napa Municipal Code Chapter 3.28 as the “Napa Parking & Business Improvement Area 1, Benefit Zone 2.” The DBPTA boundaries include the downtown core generally between Jefferson Street, Soscol Avenue, Yount Street and Division Street (see Exhibit “A” to Attachment 1).
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 tax revenues generated by the DBPTA.
The City collects DBPTA taxes from merchants within the DBPTA boundaries and transfers 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.
2. The NDA plans to produce the following events and activities in FY 2026-2027 (see Exhibit “A” to Attachment 1 for a full listing of events and activities):
• Sunday Afternoons in the Park - Four Sundays in July - The First Sunday is July 5th followed by the 12th 19th and 26th. Sundays in the Park will run from 1pm to 5pm and is a free event, open to the public and does not have alcohol sales. Guests are encouraged to bring food from Oxbow and Downtown merchants to be enjoyed while listening to two bands each afternoon.
• Hometown Halloween - October 31st, 2026, offers safe trick or treating at 100+ downtown businesses. In 2025 116 businesses participated and an estimated 2300 lbs. of candy was handed out. This is a community facing event and involves the Oxbow and Downtown districts.
• Napa Tree Lighting Ceremony - Nov. 25th, 2026, at 6 PM Held in Veterans Park the day before Thanksgiving, this free community event features entertainment from local children’s group and Mayor Sedgley, leading the children to countdown to the lighting of the Christmas Tree. No outside vendors and no street closures.
• Napa Christmas Parade - December 5th, 2026 at 5 PM This community event welcomes one and all, encouraging the community to either march along or come out and join their friends.
• Shop, Sip & Stroll - The third Wednesday of each month starting in June through September from 5 to 7 PM This promotion features retail locations paired with tasting rooms, sort of a Happy Hour shopping experience. Twenty plus merchants will participate each month, which does not close any public streets. Music will play at two locations in the event footprint and each month a different district of downtown will be featured. The four districts are First Street, Second and Third Streets, Oxbow District, and Main Street.
• Special Events Napa’s Table - June 5th, 2027 Originally a celebration of Napa’s 175th anniversary, this now-annual event features dinner for 350 at a long table. The event is held on Main Street between First and Third Streets. The event serves as a fundraiser for both the Downtown Napa Association and CANV Napa Food Bank.
• Event Sponsorship - The NDA has approved $40,000 to support third party events in the FY 26-27 budget. The NDA board has approved funding of $50,000 to support First Thursdays in the Oxbow Commons. First Thursdays will take place on the first Thursday of each month starting May 2nd 2026 through July 2nd, 2026. The NDA has approved funding of $7,500 for SoFi Battle of the Bands on July 26th, 2026, from this fund. As part of our sponsorship the NDA will also support these events by assisting in the permitting process and ABC licensing as needed.
3. The NDA estimates it will cost $855,622 to manage and promote the DBPTA and the Oxbow District. The DBPTA tax revenue of $272,470.02 funds approximately 30% percent of the overall program, the Oxbow BPAA tax revenue of $56,046.42 funds approximately 6%. The remaining 64% comes from TID and PBID grants as well as event sponsorships, fundraisers and PBID administration fees. The Oxbow and Downtown districts benefit from these additional funds through events targeting locals and visitors to shop, eat and drink locally.
4. The method and basis of levying taxes remains the same as prior years and equals 40 percent of the business license tax (imposed on each business pursuant to Napa Municipal Code Chapters 3.28 as the “Napa Parking & Business Improvement Area 1, Benefit Zone 2” and 5.04 Business Licenses Generally).
5. The carryover surplus from the 2025-2026 fiscal year is estimated to be $56,685.37.
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 to the NDA monthly.
CEQA:
City staff recommends that the City Council determine that the Recommended Action described in this Staff Report 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 also 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 2025-2026 Annual Report for the DBPTA + Oxbow Districts
EX B - FY 2025-2026 Budget for the DBPTA
NOTIFICATION:
City staff notified the Napa Downtown Association of this agenda item before the meeting date.