Review and approve the Fiscal Year 2026-27 Fiscal Strategy and Budget Policies; receive a presentation on the Fiscal Year 2025-26 mid-year fiscal review; and approve mid-year budget amendments. (Fiscal Impact: General Fund, $376,000; HHSA, $245,000; Roads Fund, $2,062,766; IHSS Authority, $117,000; Capital Improvement Fund, $55,150; Fleet Management Fund, $526,209; 5th Street Parking Garage, $7,000; Animal Shelter, $121,872; not budgeted; discretionary). [4/5 vote required]

The Napa County Board of Supervisors is reviewing and approving the Fiscal Year 2026-27 Fiscal Strategy and Budget Policies, which include a modification to how General Fund contributions are determined for non-General Fund departments. The primary change is shifting from automatic transfers to an annual analysis and discussion for contributions to the Roads, Housing and Community Services, and Fire Funds. The Board will also receive a presentation on the Fiscal Year 2025-26 mid-year fiscal review, which projects an ending General Fund balance of approximately $11.2 million, an increase of $799,225 from the adopted budget. This improved balance is due to lower-than-anticipated revenues (primarily property and sales taxes) offset by even larger decreases in expenditures, including significant reductions in transfers to the Fire Fund and Housing & Community Services due to sufficient fund balances in those areas. The review also identifies future stress factors on the General Fund, such as increasing insurance and health costs, the General Plan update, road repairs, and potential state/federal funding pressures.

Additionally, the Board is asked to approve mid-year budget amendments totaling $376,000 for the General Fund, primarily to cover new contractual obligations. These amendments are offset by the use of available fund balance. Amendments are also proposed for other funds, including increases for the Roads Fund ($2,062,766), Health and Human Services Agency ($245,000), IHSS Authority ($117,000), Capital Improvement Fund ($55,150), Fleet Management Fund ($526,209), 5th Street Parking Garage ($7,000), and Animal Shelter ($121,872).