To: Members of the Measure G Citizen Oversight Committee
From: Donna Lee, Finance Director
Prepared By: Seth Anderson, Budget Officer
TITLE:
Title
Measure G Budgeted Revenues and Expenditures Tracking
LABEL
RECOMMENDED ACTION:
Recommendation
Receive a report from staff on tracking and reporting practices for Measure G revenues and expenditures to ensure accuracy and transparency.
Body
DISCUSSION:
On November 5, 2024, the electorate of the City of Napa passed Measure G approving a new one cent (1 cent) local transactions and use tax (TUT) until such time as it is ended by voters. The approval of Measure G increases the total of the state and local sales tax on purchases in the City from 7.75% to 8.75%. Measure G is expected to generate approximately $22 million annually.
Although Measure G is a general tax whereby the revenues may be spent for any governmental purpose as directed by the City Council, the City has taken great care to establish clear guidance on the budgeting and expending of the funds.
Budget
The Measure G budget is developed as part of the City’s annual budget process and serves as the workplan for how Measure G funds will be expended. Revenue estimates are provided by the City’s sales tax consultant, while expenditures are developed to align with ballot measure, community expectations, and the City Council’s direction. Public hearings are held as part of the budgeting process to provide an opportunity for public participation and to ensure transparency. The final adoption of the budget by City Council formalizes the workplan.
In addition, all expenditures are validated through project-level budgeting and reconciliation, with transfers and spending reviewed regularly to ensure accuracy, accountability, and alignment with the adopted budget.
Fund Accounting and Revenue Collection
Fund accounting is a long-standing governmental practice that separates financial resources into distinct funds to ensure they are managed and spent for their intended purposes with transparency and accountability. Although Measure G revenues are legally considered General Fund revenues, the City has taken steps to apply fund accounting principles to enhance public trust and financial clarity. To achieve this, the City established a dedicated Measure G sub-fund within the General Fund and implemented unique account coding to clearly segregate revenues and prevent any co-mingling with other City resources. This structure ensures that every Measure G dollar is traceable and used in alignment with approved City Council direction.
Project-Level Accountability
To ensure disciplined tracking of expenditures, Project Accounting has been applied assigning unique project identification numbers to each funded project, position, operating cost, and Capital Improvement Project. Funding from the Measure G sub-fund is facilitated through documented and trackable transfers out to these projects once expenditures are reconciled and validated on the individual project level. This practice maximizes transparency by showing total expenditures within the Measure G sub-fund as transfers out to other funds by project number.
Reporting and Transparency
The City will demonstrate a strong commitment to communication and public accountability by:
• Providing accurate and timely financial data to support the Annual Measure G Report
• Regularly reporting budget-to-actual performance to the City Council and the Measure G Oversight Committee
• Maintaining detailed project-level documentation to ensure expenditure transparency
• Undergoing independent annual audits and publishing the Annual Comprehensive Financial Report (ACFR)
• Sustaining public communication through established and expanded channels, including social media, the City’s website, press releases, community presentations, and direct mailers.
Summary of Controls
The City has established a comprehensive and disciplined framework to ensure Measure G revenues are managed with the highest standards of fiscal integrity and transparency. Through the use of fund accounting, dedicated sub-fund segregation, project-level tracking, and transfer-based expenditure control, every Measure G dollar is traceable from collection to project completion. Robust internal controls, regular budget monitoring, and reconciliation practices safeguard the accuracy of financial reporting, while public-facing reports, oversight committee review, and annual independent audits reinforce accountability. Together, these practices reflect the City’s commitment to expanding the delivery of services and projects, strengthening public trust, and ensuring responsible stewardship of Measure G funds.
FINANCIAL IMPACTS:
None.
CEQA:
The Finance Director 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 - Presentation
NOTIFICATION:
None.