TO: Members of the Governing Board
FROM: Christopher Silke - District Engineer
REPORT BY: Annamaria Martinez - Assistant Engineer
SUBJECT: Fiscal Year 2026-27 Napa Berryessa Resort Improvement District Budget Hearing
RECOMMENDATION
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Conduct a Public Hearing to consider testimony on the Fiscal Year 2026-27 recommended budget for the Napa Berryessa Resort Improvement District for a total appropriation of $2,209,812. (Fiscal Impact: $5,999 Net Use of Fund Balance; Napa Berryessa Resort Improvement District; Discretionary)
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BACKGROUND
The Fiscal Year (FY) 2026-27 Recommended Budget for the Napa Berryessa Resort Improvement District budgets are submitted as follows:
Division 52400 NBRID Operating Budget
The requested appropriation for Division 52400 is $1,692,102. The recommended budget provides revenue collected through water and sewer user rates (35%), an availability charge (8%), a small portion of ad valorem property taxes (5%), miscellaneous revenue (2%), and new Special Tax Measure A that was approved by eligible voters in January 2026 (50%).
The proposed budget includes appropriations necessary to continue operation and maintenance of the water and wastewater systems in compliance with permits issued by the California Division of Drinking Water and the Central Valley Regional Water Quality Control Board.
Estimated appropriations include the following:
1. Sewer Collection, Treatment, and Disposal System expenses;
2. Water Treatment and Distribution System expenses;
3. District-wide administrative and related expenses including billing, engineering services, etc.;
4. Minor infrastructure maintenance projects as needed;
5. Minor equipment replacement/additions as needed;
6. Contingency for unexpected costs associated with operating water and wastewater facilities; and
7. Annual payment of $112,033 ($58,966 sewer, $53,067 water) into short-lived asset reserve accounts as required by the USDA loans that were used for the replacement of the water and wastewater treatment plants and the expansion of the treated wastewater storage ponds during FY 2012-2014.
In prior fiscal years all operations expenses for the water and sewer systems were included in subdivision 5240000. Staff utilized project costing methods to distinguish the water system and sewer system expenses. Starting with FY 2026-27, Division 52400 will utilize two previously unused subdivisions - subdivision 5240005 for Water and subdivision 5240010 for Sewer and will abandon subdivision 5240000. By isolating water system and sewer system revenue and expenses in separate subdivisions, staff will be able to better understand cost of service for the separate utilities (water and sewer) over time in the event user rates require adjustment. Additionally, as NBRID staff will be pursuing large-scale capital funding opportunities for both water and sewer systems in the near future, the separation of finances for the two utilities will be pivotal for completing applications from different funding agencies - both state and federal - that require water and sewer system budgets to be separate.
FY 2026-27 is the first year that a new Special Tax, Measure A, will be collected to help finance continued water and sewer services, including operating expenses, capital expenses and related reserves. Ballot Measure A was included as part of a special election held on January 20, 2026, and passage of the Measure was certified by the Registrar of Voters on February 17, 2026. Measure A is a 10-year special tax that will sunset in FY 2035-36 unless it is amended or repealed sooner by at least two-thirds of registered voters in the District.
Measure A requires the District Engineer to prepare and submit an annual report to the Governing Board detailing the collection of use of funds in accordance with Government Code Section 50075.3. The first annual report will be submitted in June 2027.
Division 52405 NBRID Capital Improvement Projects
Total appropriations requested is $0.
NBRID has three (3) currently active capital projects that will remain "in progress" and will roll to FY 2026-27 as needed:
Project 21071 - USDA Depreciation Reserve Wastewater Projects - estimated rollover $37,000
Project 21072 - USDA Depreciation Reserve Water Projects - estimated rollover $40,000
Project 25046 - Water and Wastewater SCADA Replacement Project - estimated rollover as of May 28, 2026 is $150,000.
NBRID has two (2) short-lived asset reserve accounts required by USDA loans, annual payment of $112,033 are paid to the two accounts as follows:
Project 16022 - USDA Bond-Wastewater Dpr Rsv - $58,966
Project 16023 - USDA Bond-Water Dpr Rsv - $53,067
Division 52410 NBRID Debt Service
Total appropriations requested are $517,710
In FY 2012-13, NBRID successfully issued $10,883,600 in Limited Obligation Improvement Bonds, comprised of $7,959,728 in Series A Bonds (Wastewater System Improvements) and $2,923,728 in Series B Bonds (Water System Improvements). The appropriations requested are to pay the debt service and expected regular administration fees currently scheduled for FY 2026-27. Additionally, FY 2026-27 will be the fourteenth year of assessment collections made from NBRID residents to repay the debt service for the bond. Final adoption of the budget will be on the June 23, 2026 consent calendar.
Procedural Requirements:
1. Open Public Hearing
2. Staff Report
3. Public Comment
4. Board Discussion
5. Close Public Hearing
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? |
Discretionary |
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Discretionary Justification: |
Establishing the Annual Budget |
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Is the general fund affected? |
No |
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Future fiscal impact: |
The budget is for FY 2026-27 only. |
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Consequences if not approved: |
Without the budget adoption, NBRID will not have the appropriate spending authority needed for FY 2026-27. |
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Strategic Initiative: |
Elevate County Service and Workforce Excellence |
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.