FY 2019/20 and FY 2020/21 Budgets
The City of Napa’s fiscal year begins each July 1, and the City operates on a two-year budget cycle. The City Council originally adopted the City’s two-year budget for FY 2019/20 and 2020/21 on June 18, 2019.
The novel coronavirus (COVID-19) pandemic has had a massive impact on the City’s sales and transient occupancy tax revenues, with hotel occupancy dropping by 90% and many businesses unable to operate due to shelter-in-place orders. On June 16, 2020, the City Council adopted the City of Napa’s Fiscal Year (FY) 2020/21 Operating and Capital Improvement Budget Update. You may read the full Budget Update document on the City’s website.
The City’s Budget Process ("Budget 101")
The fiscal year of the City government begins on July 1 and ends on June 30 the following year. Per the City’s Fiscal Policy (which you can view in the City’s Adopted Budget documents):
- The City will adopt a balanced two-year budget by June 30 of every other year. As a part of the bi-annual review, prior to the end of the two-year budget, the City Council will adopt the budget for the second year of the two-year budget.
- From approximately January to May, each Department Director may request additional funds for new positions, equipment or programs during the budget creation process. Requests are submitted as Decision Packages, and include a description of what the funds will be used for and estimated financial impact.
- On/before June 30 each year, the City Council adopts the budget with any revisions it advises. The City Council needs a majority vote (three out of five) to adopt the budget.
- An annual audit will be performed by an independent public accounting firm with the subsequent issue of an official Comprehensive Annual Financial Report (CAFR), including an audit opinion.
- Semi-annual financial reports will be submitted to the City Council and will be made available to the public.
- A 6-year financial forecast (called the "Long-Term Financial Forecast") shall be prepared annually projecting revenues and expenditures for the General Fund. This forecast shall be used as a planning tool in developing the following year’s operating budget.
- What are the projections for Fiscal Year (FY) 2019/20? Is the City expecting a surplus or a shortfall?
- What has the City done so far to address the FY 2019/20 revenue shortfall?
- When will the City know the final tally on revenues and expenses for FY 2019/20?
- What are the projections for revenue in FY 2020/21?