TO: Napa County Housing Commission
FROM: Jennifer Palmer, Executive Director
REPORT BY: Alex Carrasco, Project Manager
SUBJECT: Fiscal Year 2026-2027 Operating Budget for CSA No.4 Engineer’s Report
RECOMMENDATION
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Submit the proposed Napa County Housing Authority Farmworker Centers operating budget for fiscal year 2026-2027 to County Service Area No.4 consultant for an Engineer’s Report.
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BACKGROUND
In 2002, the Napa County Board of Supervisors established County Service Area No.4 (CSA No.4), a special district that funds the operation, maintenance, and development of public farmworker housing through an annual assessment of land containing at least one acre of planted vineyards. CSA No.4 currently acts as a funding mechanism to support the Napa County Housing Authority (NCHA) in operating the Calistoga, River Ranch, and Mondavi Farmworker Centers (Centers), which operate 330 days per calendar year and have a combined capacity of up to 180 daily lodgers. The Centers serve an essential role in housing a labor force that is at the core of the gross agricultural production in the Napa Valley.
The assessment is not conditional. Qualifying property owners cast their vote to reauthorize the assessment for a five-year period. The assessment was reauthorized in 2007, 2012, 2017, and most recently in 2022, valid through fiscal year 2026-2027. The per acre assessment was historically capped at $10.00 until 2017 when the State Legislature approved an amendment in Government Code Section 25210.74 to increase the maximum assessment from $10.00 to $15.00 per planted vineyard acre. If needed, the assessment can increase by $1.00 annually until the maximum assessment equals $15.00. In addition, as the assessment increases by $1.00 the tenant rental rate increases by $1.00. For fiscal year 2025-2026, the assessment is $14.00 and the tenant rate is $18.00.
Procedurally, the Housing Commission establishes an ad-hoc Budget Subcommittee and appoints one or two commissioners to work alongside county staff to finalize an operating budget for the Centers. For fiscal year 2026-2027, the subcommittee proposes the attached operating budget. Revenue estimates total $1.4 million including tenant and staff rents, state funding, laundry revenue, donations, and interest. The estimated expenses total $2.0 million, and include services such as onsite property management, meal and household expenses, utilities, and maintenance. The gap between revenue and expenses is offset by CSA No.4 funding.
The proposed operating budget is presented to a consultant (engineer), who then prepares a report (Engineer’s Report) for CSA No.4. The Engineer’s Report identifies each parcel of property subject to the assessment and the amount of the assessment pertaining to each parcel. Based upon the filed Engineer's Report, the Board of Supervisors holds a public hearing and determines the actual assessments for each parcel. The levied assessments are submitted to the County Assessor’s Office and are included on the property tax bills for the affected parcels, and the County updates its database of exiting planted vineyard acreage within CSA No.4.
Staff recommend submitting the proposed operating budget for fiscal year 2026-2027 to the CSA No.4 consultant for an Engineer’s Report.
PROCEDURAL REQUIREMENTS
1. Staff Report
2. Public comment
3. Motion, second, discussion and vote
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.