TO: Board of Directors
FROM: Steven Lederer - Manager, UVWMA
REPORT BY: Kat Chambers - Staff Services Analyst II, UVWMA
SUBJECT: PUBLIC HEARING: Adoption of Fiscal Year 2026-2027 Budget
RECOMMENDATION
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PUBLIC HEARING: ADOPTION OF FISCAL YEAR 2026-2027 BUDGET
REQUESTED ACTION: Staff requests Approval and Adoption of Agency Resolution No. 26-01, adopting the proposed final budget for Fiscal Year 2026-2027.
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BACKGROUND
The Upper Valley Waste Management Agency (UVWMA) was formed in 1992 through a Joint Powers Agreement between Napa County, City of St. Helena, City of Calistoga, and the Town of Yountville. It coordinates and oversees solid waste, recycling, and organics services for the Upper Napa Valley by administering franchise agreements with private haulers, ensuring compliance with state waste reduction mandates, conducting rate and contract oversight, and supporting public outreach and education efforts.
The requested Fiscal Year 2026-2027 budget allocation would allow the Agency to continue meeting regulatory requirements, maintain effective program oversight, support regional waste diversion goals, and ensure reliable waste management services for residents and businesses.
The recommended Fiscal Year 2026-2027 budget is attached for Board approval:
Expenditures $1,268,350
Revenues $820,000
Use of Fund Balance $448,350
The anticipated total revenues of $820,000 are collected from franchise fees, grants, and interest earnings. Revenue is primarily provided through the UVDS Franchise Agreement, whereby the company provides the Agency funds in an amount equal to 3% of its gross revenue to the Agency. This is expected to generate approximately $560,000 in revenue for Fiscal Year 2026-2027. In addition, the budget assumes $25,000 in revenue from a CalRecycle grant to support recycling programs. The Agency also has a $300,000 SB 1383 grant recorded as deferred revenue, of which approximately ~$200,000 remains unearned and is expected to be expended during Fiscal Year 2026-2027.
Expenditures are projected to remain consistent with last year’s budget. The total requested appropriations are $1,268,350, which is a modest increase of $27,730 over last year's budget. Appropriations include $200,000 for SB 1383 grant related expenditures, including the purchase of compost to meet SB 1383 procurement requirements for all Agency members, as well as $300,000 allocated for community grants to support waste management-related projects conducted by UVA’s member jurisdictions.
When compared to last fiscal year, the most significant increase in appropriations is $50,000 in Consulting Services to fund the Waste Characterization Study. Additional increases include $10,000 for Administration Services to cover cost-of-living adjustments and $4,000 for Hazardous Waste Services due to anticipated rate increases. Offsetting these increases are reductions of $30,000 in Community Grants due to the discontinuation of food grants, and $7,000 in Printing and Binding as a result of reduced grant-related expenditures in that category.
The Agency is projected to begin Fiscal Year 2026-2027 with a fund balance of nearly $2 million and end the year with a balance of $1.5 million. The Board policy minimum fund balance requirement is
$35,000; thus, funding is available to support SB 1383 implementation projects, litter removal efforts, and other projects at the discretion of the Board.
BUDGET HEARING (Final Adoption)
1. Open Public Hearing.
2. Staff reports.
3. Public comment.
4. Close Public Hearing.
5. Motion, second, discussion and vote on the adoption of Resolution 26-01 approving the Budget for Fiscal Year 2026-27.
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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Where is it budgeted? |
Operating Revenues |
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Is it Mandatory or Discretionary? |
Discretionary |
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Is the general fund affected? |
Yes |
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Consequences if not approved: |
If the proposed budget is not approved, the District will not have an adopted budget for Fiscal Year 2026-2027 and, therefore, would be unable to carry out its responsibilities or fulfill its mission. |
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.