TO: Board of Supervisors
FROM: Tracy Schulze, Auditor-Controller
REPORT BY: Susan MacDonald, Internal Audit
SUBJECT: Napa Valley Tourism Improvement District Annual Report for Fiscal Year 2022-2023
RECOMMENDATION
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Accept and instruct Clerk of the Board to file the Napa Valley Tourism Improvement District Annual Report for Fiscal Year 2022-2023. (Fiscal Impact: None, Discretionary)
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BACKGROUND
On January 19, 2010, the Napa County Board of Supervisors adopted Resolution No. 2010-07 to begin proceedings “to form the Napa Valley Tourism Business Improvement District (NVTBID), in accordance with the Property and Business Improvement District Law of 1994”, as requested by tourism business owners providing lodging located throughout the unincorporated County and the cities of American Canyon, Calistoga, St. Helena, Napa, and the town of Yountville. The 1994 law allows for the creation of benefit assessments within specific geographic areas.
As a result of the request and passage of the 2010 Resolution, the Napa Valley Tourism Improvement District (NVTID) was established with a five-year term and regulated through the adoption of the Management District Plan by the Board of Supervisors, requiring the jurisdictions to collect a 2% assessment of gross short-term room rental revenues from the lodging establishments and then distribute the revenue according to the Management District Plan for the purpose of promoting tourism and providing services that increase room night sales. The Board of Supervisors renewed the NVTID in 2014 to extend from June 2015 - June 2025.
Per the Management District Plan (Plan), Section VII - Governance, the Napa County Auditor-Controller conducts an annual review of each jurisdiction’s reconciliation of TID collections and disbursements and presents the findings to the Board of Supervisors. The jurisdictions are requested to complete a single-page financial report which provides total Transient Occupancy Tax (TOT) collected, the total Tourism Improvement District (TID) assessment, and the TID distributions mandated by the Plan. Jurisdictions are required to submit accounting detail to support the data provided in the financial report.
The local governing committees (LGCs) are also required to provide a report for the 25% of TID retained by the jurisdictions, along with an annual budget/expense reconciliation and approvals in committee meeting minutes to demonstrate spending in accordance with the Plan.
Appendix A provides a summary of the jurisdictions’ reporting, while Appendix B represents the results of internal audit’s review based on the financial reports and documentation submitted by the jurisdictions and local governing committees.
Requested Action: Accept and file the report.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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 no applicable.