TO: Napa County Flood Control and Water Conservation District
FROM: Richard Thomasser - District Manager
REPORT BY: Sarah Geiss - Supervising Staff Services Analyst
SUBJECT: Open Fiscal Year 2025-26 Budget Hearings
RECOMMENDATION
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PUBLIC HEARING - Fiscal Year 2025-26 Napa County Flood Control and Water Conservation District Budgets
Open Public Hearing to accept testimony on the Fiscal Year 2025-26 Recommended Budget for a total appropriation of $65,776,866 and continue hearing for consideration to June 10, 2025, at 9:00 AM for adoption. (Fiscal Impact: $20,816,755 net expense; Flood Control and Water Conservation District; Discretionary)
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BACKGROUND
Submitted for Board consideration is the Fiscal Year 2025-26 proposed District budget. The District is accounted for under two Funds: Fund 8000 which includes five Divisions: Watershed Projects, Flood Control Project, Napa Flood Project Measure A, Flood Project Maintenance Measure A, and Water Supply Contracts; and Fund 8010 which has one Division: OVOK CFD.
Detailed explanations of the various budget components are in the following narrative and attached spreadsheets.
Fund 8000 Division 80005 - Watershed Projects
Division 80005 is comprised of the following four Subdivisions:
1. 80005-00 Countywide Watershed Management,
2. 80005-01 NPDES Storm Water Management,
3. 80005-02 Rutherford Maintenance, and
4. 80005-03 Oakville to Oak Knoll (OVOK) Community Facilities District (CFD) Services
Subdivision 80005-00 - Countywide Watershed Management:
Total requested appropriations for the Countywide Watershed Management Subdivision is $4,570,454. On May 13, 2025 a Resolution was adopted levying fiscal year 2025-26 assessments, which will result in an estimated $1,577,360 in new assessment revenue for various maintenance projects. Additional revenues include State and Federal grants and allocations from local jurisdictions, and interest earnings on fund balance totaling $3,170,000, for total revenues of $4,747,360
The proposed budget includes expenditures to continue managing and upgrading the Countywide Early Warning system, including verifying the calibration of flow gages and rating of streams to provide reliable data for hydraulic models, as well as improving emergency planning and response, which aids Napa County and its cities in flood prediction and response planning. Also funded is the continued maintenance of the District’s 13 miles of channel easements throughout the County. Assessment funds are proposed to be used to support Calistoga, St. Helena, Yountville, and the City of Napa with projects and studies involving the maintenance of tributaries and channels within city and town limits, both on public and private property. American Canyon has entered into a contract with the District to provide up to $110,000 annually on agreed upon stream maintenance activities. These services are provided on an as-needed basis based upon stream surveys conducted by District staff, as well as landowners' requests for assistance.
The streambank cost-share program remains popular and attracts applications for stream erosion protection from private property owners. These projects are approved on a first-come basis for projects meeting environmental and property protection goals. The District works with local partners to manage a native plant propagation facility to further support streambank restoration and the use of local native plant species. Match monies are included in the proposed budget for grants awarded by State and Federal agencies. These projects will remove non-native plants from portions of the watershed. Funds are also included in the budget for supporting ongoing Integrated Regional Water Management Plan (IRWMP) activities in both the Napa River Watershed and Putah Creek and Suisun Creek Watersheds.
The proposed budget continues support of the Countywide National Pollutant Discharge Elimination System (NPDES) (stormwater) program. The District's proposed contribution to the Countywide Stormwater Program Joint Powers Agreement (JPA) from assessment revenues equal half of the cost (approximately $117,000) of staff and administrative support to the JPA for a fulltime stormwater program manager. The cities and County cost-share the other half of these costs equally. The District also performs additional activities in support of the NPDES program, including volunteer coordination for creek cleanup activities and educational programs for landowners whose properties include creeks. The District also contributes to water quality education programs for Lake Berryessa.
The District is scheduled to begin construction of the Bale Slough-Bear Creek Restoration Project (Project) in the summer of 2025. Grants totaling $3,000,000 were awarded to the District by the Wildlife Conservation Board (WCB) - $1,600,000 and Environmental Protection Agency (EPA) - $1,400,000 in the fall of 2023 and spring of 2024 for restoration construction of the Group C restoration sites in support of implementation of the Project.
Subdivision 80005-01 - NPDES/Stormwater Management:
Total requested appropriations for the Countywide NPDES/Stormwater Management program is $593,470 and funds one full-time equivalent staff position plus additional educational outreach and support contracts. This program is funded by an Agreement between American Canyon, Napa, Yountville, Calistoga, St. Helena, the County, and the District with District staff facilitating and providing technical support for the program.
Subdivision 80005-02 - Rutherford Maintenance:
Total requested appropriations for Rutherford Maintenance are $185,300 to fund the maintenance of the Napa River and the adjacent riparian area between Zinfandel Lane and Oakville Cross Road in conjunction with the Rutherford Reach Restoration Project, which was built using grant funds and County Measure A funds between 2009 and 2014. This Subdivision is funded by assessments within the Rutherford Reach Special Benefit Zone as approved by the property owners in this area in 2008. No assessments for Fiscal Year 2025-2026 are being proposed for the properties within the Benefit Zone as a sufficient fund balance exists to carry out required annual maintenance and monitoring activities.
Subdivision 80005-03 - Oakville to Oak Knoll (OVOK) Maintenance:
Total requested appropriations for the OVOK Maintenance are $150,000. This Subdivision accounts for the expenditures associated with maintenance services for participants to fund maintenance of the Napa River and the adjacent riparian area in this reach in conjunction with the Oakville to Oak Knoll Reach Restoration Project, which is being built using grant funds and County Measure A funds and other participants who voluntarily have joined a Community Facilities District. This Subdivision is funded by special taxes, collected into Fund 8010 (see below) as approved by the property owners in this area in 2014.
Fund 8000 Division 80010 - Flood Control
Division 80010 is comprised of one Subdivision - 80010-00 Flood Control Project
Subdivision 80010-00 - Flood Control Project:
Total requested appropriations for the Napa River/Napa Creek Flood Protection Project (Project) are $23,648,271, with total revenues of $23,648,271 provided from Fund 8000, Division 80011 (Napa Flood Project Measure A) and Fund 8000, Division 80012 (Napa Flood Project Maintenance Measure A) in the amount of $22,950,364, and $697,907, respectively, as well as interest earnings.
The proposed budget for the Project is comprised of land acquisition and planning, engineering, and design (PED), construction, and construction management. The proposed budget related to land is $6,578,761 and includes right of way services, surveying, legal services, and staff time. Staff continues to work with the State on subvention reimbursement packages, and the City of Napa on land exchange and right of ways. Planning, engineering, design, construction, and construction management constitutes $4,983,785 in fiscal year 2025-26 to fund activities related to the Federal allocation of $48,300,000 to finish the remaining project elements that have Federal interest. Funds are budgeted for local design of the next phase of the flood project, including construction management is $1,387,818. The proposed budget related to construction of the flood wall is $10,000,000, construction is proposed to begin in the early Spring of 2026. There is budget for continued federal lobbying and support for the Flood Control Project as well as engineering consultant support for hydraulics and hydrology and Geotech as well as outside legal counsel. The proposed budget also includes District staff time related to design, construction, construction management, and coordination with USACE.
The District has assumed the operation and maintenance of the following completed Project elements: South Wetlands Opportunity Area, Contract 1A, Contract 1B from Kennedy Park to Imola, certain elements in Contract 2 East from Imola Avenue to Third Street, Contract 2 West from Hatt to First Street, Napa Creek, the Bypass Rail Bridge Relocation Project elements, and the Napa River Dry Bypass. Therefore, $697,907 (O&M) have been allocated in the proposed fiscal year 2025-26 budget to provide for the operations, maintenance and monitoring of the constructed flood features.
Subdivision 80011-00 - Napa Flood Project Measure A
Total requested appropriations for the Project are $22,950,364. This division was created in fiscal year 2018-19 upon the sunset of Measure A and acts as a non-operating special revenue fund which restricts the funds for the specific purpose of the Napa City and Vicinity Flood Project in accordance with Measure A. This subdivision currently has a fund balance of $41.0 million, and funds are drawn upon as reimbursements for future eligible Measure A expenditures within Subdivision 80010-00 in accordance with Amendment No. 1 of the Joint Powers Agreement, for the purpose of capital improvement costs on the Napa Flood Project.
Subdivision 80012-00 - Napa Flood Project Maintenance Measure A
Total requested appropriations for the Project are $697,907. This division was created in fiscal year 2018-19 upon the sunset of Measure A and acts as a non-operating special revenue fund which restricts the funds for the specific purpose of the Napa City and Vicinity Flood Project Maintenance. This Subdivision currently has a fund balance of approximately $13.0 million, and funds are drawn upon as reimbursements within Subdivision 80010-00 in accordance with Amendment No. 1 of the Joint Powers Agreement, for the purpose of operations and maintenance of the Napa Flood Project.
Subdivision 80015-00 - Water Supply Contracts
Total requested appropriations for Water Supply Contracts are $12,823,100. This Division accounts for the District's responsibility to ensure that Napa County's municipal, industrial and agricultural water needs are met. The District is the local contracting agency to the State of California, through their Department of Water Resources (DWR), for Municipal and Industrial water from the State Water Project (SWP). This relationship resulted in the extension of the North Bay Aqueduct (NBA) into Napa County. Offsetting revenues include the sale of water and various grants.
The District contracts with the U.S. Bureau of Reclamation (USBR) for water from Lake Berryessa for use in the Upper Putah Creek watershed in Napa County. The District, in turn, subcontracts for the sale of the water to local agencies and property owners District staff meets regularly with a Technical Advisory Committee (WATERTAC), consisting of the Public Works Directors and Water Managers of the Member Agencies (Cities), to obtain input and build consensus on matters relating to administration of the State Water Contract, additional water supply possibilities, and water supply reliability enhancements. Because Member Agencies pay for the District's services in this effort, WATERTAC advises staff, through a consensus-building process, as to the level of service and the various projects and programs that it desires.
Subdivision 80100-00 - Oakville to Oak Knoll Community Facilities District (OVOK CFD):
Total requested appropriations of the OVOK CFD are $158,000. This Division 80100 accounts for the District's special tax collection through the OVOK CFD, which was created through a vote of the involved landowners in 2014, principally to support long-term maintenance and monitoring of the Napa River Restoration-Oakville to Oak Knoll Reach Project. The CFD is open to voluntary participation of other landowners with stream or river frontage within the District boundaries, which encompasses the central Napa River Watershed from Zinfandel Lane to Oak Knoll Avenue. The CFD has been established to exist for 20 years (2015-2035). Each year, additional landowners with interest in stream or river restoration and maintenance may elect to annex into the District through a filing of their consent to such with the District. The budget for fiscal year 2025-26 of $121,010 reflects the revenues associated with baseline participants plus additional participants who have agreed to join the CFD for the coming year and interest earnings. Expenditures from this fund include the estimated $150,000 of services to be performed under Fund 8000 Sub-division 80005-03 (see above) and $8,000 for administrative and legal costs to maintain the CFD.
Fiscal year 2025-26 Capital Asset Appropriations
Subdivision 8001000:
• $5,000,000 - Land acquisition related to the floodwalls north of the Napa River Bypass.
Requested Actions:
1. Open fiscal year 2025-26 Budget Hearings.
2. Receive staff's presentation and accept public testimony on the attached budgets, including policy related
items.
Fund 8000, Division 80005 Watershed Projects - $5,499,224
Fund 8000, Division 80010 Flood Control - $23,648,271
Fund 8000, Division 80011 Flood Project, Measure A - $22,950,364
Fund 8000, Division 80012 Flood Project Maintenance - $697,907
Fund 8000, Division 80015 Water Supply Contracts - $12,823,100
Fund 8010, Division 80100 Oakville to Oak Knoll CFD - $158,000
3. Continue fiscal year 2025-26 Final Budget Hearings to June 10, 2025, for adoption of final budgets.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Mandatory |
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Is the general fund affected? |
No |
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Future fiscal impact: |
This item establishes the appropriation authority for Fiscal Year 2025-2026. |
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Consequences if not approved: |
No approval is needed at this time |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: : The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.