On November 1, 2022, the City of Napa shared the City’s financial status as analysis of Fiscal Year 2021-22 is completed and Fiscal Year 2022-23 is underway. Throughout the past fiscal year, the City operated with an incredibly lean budget to proactively prepare for ripple effects from the pandemic. City staff worked to ensure that Napa continued to deliver necessary resources to residents and businesses to aid in economic recovery. Through this collective effort, the City ended FY 21-22 in a net positive position.
Conservative budgeting, along with higher-than-anticipated revenue overall, allowed the City to end FY 21-22 with a $12.4 million positive projected net position. The surplus is primarily driven by increased tourism, specifically through Transient Occupancy Tax (TOT) and Sales Tax revenue, as well as lower than budgeted expenditures due largely to significant staff vacancies.
“The City Council and City staff worked meticulously to ensure that the FY 21-22 budget was balanced and responsibly dispersed to continue delivering high-quality services to our residents,” said Mayor Scott Sedgley. “Between lean budgeting and higher revenues, we are pleased to end the year in a financially healthy position.”
Managing the budget is a multifaceted process, with City staff tracking revenue in categories such as Property Tax, Sales Tax, TOT, Licenses & Permits, Salaries & Wages, and External Services. Upon the FY 21-22 analysis, the City determined an increase in revenue–along with savings–in these categories. As FY 22-23 unfolds, the City is committed to continually monitoring revenue and identifying trends to preserve the City’s fiscal stability and provide residents with the highest quality of service.
“With a greater net position than expected, the City has more financial flexibility moving forward,” said City Manager Steve Potter. “We are confident that our financial position will allow us to invest in projects and improvements that will help Napa remain the thriving City it is.”
The City plans to use 44% of this surplus for Capital Improvement Projects (CIP) and software upgrade projects, one-time labor costs, fleet vehicle replacements, and projects that reflect the City’s priorities. The remaining 56% will be transferred to the CIP Facilities Reserve, as per the City’s Fiscal Policy.
Through these upgrade projects, the City can continue to provide residents with the highest quality of life through sound planning and strategic investments. Learn more about the City’s budget at https://www.cityofnapa.org/154/Budgets-Financial-Reports.