TO: Members of the Governing Board
FROM: Christopher Silke, District Engineer
REPORT BY: Anna Martinez, Assistant Engineer
SUBJECT: Adopt a Resolution Calling a Special Election by all-mailed ballots for January 20, 2026 that will enable voters to approve or reject Napa Berryessa Resort Improvement District Measure “A” and approving and submitting an argument in favor of the Measure.
RECOMMENDATION
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Adopt a Resolution calling a Special Election on January 20, 2026 enabling voters to approve or reject Napa Berryessa Resort Improvement District Measure “A” establishing an annual Special Tax of $1,560 on all parcels in the District with existing infrastructure available to connect to the water and sewer systems, and approving and submitting an argument in favor of Measure “A”. (Fiscal Impact up to $15,000, NBRID Fund; Budgeted; Discretionary)
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BACKGROUND
On October 29, 2024, the Napa Berryessa Resort Improvement District (NBRID) District Engineer in collaboration with Robert D. Niehaus, Inc. (RDN), NBRID’s financial consultant, presented an updated operations budget financial plan to the Board for their information along with options for increasing revenue to eliminate annual deficits, cease loan dependency from the County and transition to financial sustainability. Fiscal stability is a prerequisite for NBRID, recently designated as a disadvantaged community, to qualify for State and Federal grant assistance programs to perform necessary capital improvement projects on District utility assets.
As requested by the Board, staff presented the same material to customers and property owners in the District at a community meeting on November 13, 2024 at the Capell Valley Volunteer Fire Station and returned to the Board on December 17, 2024 to seek endorsement of one of the following funding scenarios - adjusted from those presented at the October 29, 2024 Board meeting and the November 13, 2024 community meeting to account for revised assumptions regarding the allocation of costs over the next 10 years. All but Scenario Zero includes a fund balance target of $1.2M at the end of 10 years.
Scenario Zero, or do nothing - Under this scenario, the current and future operating revenue neither fully funds operating expenses nor achieves the target fund balance, resulting in an approximate $500k deficit each year. The District operations budget will rely on County loans every two to three years if no action is taken or District customers/property owners reject all proposals.
Scenario A - Adjusts Water and Sewer User Rates upward by 105 percent over the course of five years, then annual 4% CPI increases for an additional five years through Fiscal Year 2034. The Governing Board previously opposed any further action on this approach.
Scenario B - Proposes a User Rate increase of 77 percent coupled with a 10-year Special Tax assessment of $560 for developed parcels and $160 for undeveloped parcels. The Special Tax will be in addition to the existing availability charge of $240 ($120 for water, $120 for sewer) that is currently collected on the tax roll for all parcels in the District.
Scenario C - Does not adjust user rates, but rather proposes a 10-year Special Tax assessment of $1,560 on all parcels with existing infrastructure available to connect to the water and sewer systems in the District service area. As with Scenario B, the Special Tax will be in addition to the existing availability charge of $240 ($120 for water, $120 for sewer) that is currently collected on the tax roll for all parcels in the District.
At the December 17, 2024 meeting, the Board gave staff direction to pursue Scenario C.
Elections Code Section 4108 permits the District, by resolution, to call a special election by all-mailed ballots in accordance with Elections Code Sections 4000 et seq. on a date prescribed in Elections Code Section 1500 or on any date other than an established election date. Staff coordinated with County Counsel and the Registrar of Voters and determined January 20, 2026 is the earliest date to which a special election can be conducted. If the resolution is approved, Measure “A”, the full text of which is included as Exhibit A to the resolution, will be submitted to the voters for approval.
Adoption of the proposed resolution calls for an all-mailed ballot special election to be held January 20, 2026. If approved by 2/3 of eligible voters, Measure “A” will levy an annual tax of $1,560 on all parcels with existing infrastructure available to connect to the water and sewer systems in the District. The duration of the tax is 10 years and would be effective July 1, 2026 through June 30, 2037.
Additionally, California Elections Code section 9162 authorizes the Governing Board of NBRID to submit a written argument for or against a ballot measure. Adoption of the resolution will also approve the argument in favor of NBRID Measure “A” attached as Exhibit “B” to the resolution and direct the Clerk of the Board to submit the argument to the Registrar of Voters on behalf of the Board for inclusion in the ballot materials.
Requested Actions:
1. Adopt a Resolution calling a Special Election on January 20, 2026 enabling voters to approve or reject Napa Berryessa Resort Improvement District Measure “A” establishing an annual Special Tax and approving and submitting an argument in in favor of Measure “A”.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
NBRID, Fund 5240 Operations, Division 52400 will reimburse the Elections Department for costs to conduct the election estimated at between $8,000 and $15,000. Final cost for the proposed election is still to be determined, but staff included provisions for this reimbursement in the budget that was adopted on June 24, 2025. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The District is facing financial hardship and proposes the special tax as a measure to bring the budget into balance for the purpose of qualifying for funding programs for necessary capital improvements to district facilities. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
None |
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Consequences if not approved: |
The District will need to pursue and enact other revenue increase mechanisms for operations. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: This proposed activity is not subject to CEQA pursuant to CEQA Guidelines section 15060(c)(3) because the activity is not a project pursuant to section 15378, and because it will not result in a direct or reasonably foreseeable indirect physical change in the environment pursuant to section 15060(c)(2).