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Posted on: June 26, 2020

Adopted Budget for FY 2020/21

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On June 16, 2020, the City Council adopted the City of Napa’s FY 2020/21 Operating and Capital Improvement Budget Update. You may read the full Budget Update document on the City’s website.

The City had to make drastic reductions in expenditures and tapped the Reserves fund to balance against our projected revenue shortfall due to the COVID-19 pandemic. Based on available data, including historical revenue, industry projections, and state/national economic information, we project a shortfall of $20 million for FY 2020/21, which equates to approximately 20% of the annual General Fund revenue. The use of $3.6 million in General Fund Emergency Reserves was required to close the gap.

"The reductions we have adopted are deep and every Department and resident of the City will feel their impact. But this community is strong and resilient. I believe in our City’s leadership and value our community’s commitment to listening to one another. As history has proven, we, the City of Napa, will navigate our way through this difficult time together toward a bright and solvent future. Thank you again to everyone who has contributed to seeking solutions as we work through these hardships together. We will need to continue to work together to find long-term solutions to the unprecedented impacts of COVID-19." - Steve Potter, Napa City Manager

Click/tap the image below to view a full-size version of this infographic. It explains how COVID-19 impacted our FY 2020/21 budget and what the City of Napa has already done to balance against the projected revenue decreases.

Infographic of Napa's FY 2020-21 budget

We will not know the full revenue collected in FY 2019/20 until this Fall. We will closely monitor our close-out of FY 2019/20 and first few months of FY 2020/21 revenue – historically, the City’s busiest visitor season – so the City can thoughtfully assess our short-term and long-term impacts. As City leadership continues to analyze our financial challenges for both FY 2019/20 and FY 2020/21, we will continue to provide our employees and the Napa community with informational updates. Please stay tuned to the City’s website at CityOfNapa.org, the Napa News email newsletter, and "cityofnapa" on Facebook, Twitter and Instagram.

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