Napa County faces the fiscal cliff when the cost of fire, insurance and infrastructure increases

Napa County's ability to finance new priorities quickly eroded. Within five years, it is expected that the once reliable financial pillow of the district will shrink from $ 36 million to $ 6 million. Leave little space for everything that goes beyond the most important services.

The increasing costs for fire protection, capital improvements and insurance aggravates the squeeze. In the fire brigade alone, ten million additional funds will require, while the insurance costs that are driven by natural disasters and climate change will increase at an alarming price.

The district managers warn that the current financing model is not sustainable, which forces difficult decisions about how NAPA remains financially stable.

The shrinking general fund amount

At the center of the problem is the general find of the district, which is currently a pot of 324 million US dollars that supports the core services.

While it is the 2023-24 financial year with a castle 36 million US dollars of non -assigned money – funds for investing in priorities such as fire protection – will be the balance, even if the income continues to increase. Projections will show a decline of $ 30 million and only $ 6 million by 2029-30 by 2025-26.

“For this reason, the general fund will have a fairly limited ability to absorb or will be much more absorbed in the coming years,” said Daniel Sanchez, a senior analyst for the district.

The district is already making major transfers from the general fund to cover the growth costs, including a transfer of $ 18 million in its fire brigade funds and a further $ 18 million to its capital Improvement. And the load does not loosen.

Three objects, Fire brigade, capital improvements and insurance companies are “now either 20 million US dollars or a short time 20 million US dollars a year,” said Sanchez.

Fire protection: A growing burden

The district's fire fund receives 15 million US dollars annually from land taxes, but that is no longer enough to cover bale costs.

Additional district funds help to bridge the gap that is due to increased vegetation management, the rising costs in the district of the district to the district of the district to the Napa County Fire Department and the growing capital requirements of the department.

“The general fund must necessarily subsidize the fire fund,” said Sanchez.

Officials previously applied for a long-term solution with a measure of 2022, a sales tax in a quarterly turnover, which would have generated $ 10 million for fire services annually. However, it could not reach the two third majority that was required for the approval.

Now the district managers say that the problem has to be visited again.

“As it is currently packaged, it is simply not sustainable and leads to you see here,” said Ryan Alsop, Executive Officer from Napa County. “If we had found a different way or another means, this table would look very different, and I think you would probably feel much better.”

Supervisor Belia Ramos said it was time for a serious discussion about the formation of a fire brigade district with the authority to raise a parcel tax and to avert the burden from the general fund. Supervisor Joelle Gallagher supported the idea and asked an ad hoc committee to explore fire financing options.

“We have to increase the income for fire prevention for the reduction and cannot do what we do,” said Gallagher. “As we said over and over again, this is not sustainable.”

Steep climb for insurance and capital improvements

In addition to fire protection, other financial prints are increasing.

The district has undertaken for a project of $ 140 million in order to partly move the district offices to the South Campus and requires an annual transfer of 10 million US dollars to the capital improvement fund plus an additional 9 million dollars per year for bond financing.

At the same time, the insurance costs have risen suddenly. What cost 2021-22 $ 6 million has already doubled, and by 2027 the district expects $ 20 million per year for liability and real estate cover.

“The inclination of the line becomes steeper and steeper, and it will not decrease so quickly,” said Sanchez as driving forces, citing climate change, natural disasters and market volatility. The January fires in Los Angeles will probably accelerate the trend.

The Federal Government's measures under President Donald Trump, including tariffs, deportations and federal program cuts, contribute to uncertainty. As a result, there can be a significant impact on the local budget, said Sanchez, but at the moment it is unclear what these effects would be.

Another problem is the potential loss of ten million annually from a complicated source of income: state funds that are paid to the district instead of vehicle license fees. Due to the decline in the Napa Valley school district, the change can be traced back to a “Basic AID” district due to the decline in enrollment, although the earliest that could happen is in the 2026-27 financial year.

What's next?

Napa County faces a financial settlement. Without a committed source of income for fire services, the leaders warn that the general fund will continue to be stretched thinly – and endangers its ability to support future needs.

The board of directors will soon have to decide: either new financing mechanisms or areas for deeper financial restrictions.

The upcoming decisions will define the future of the district. However, one thing is clear – without decisive measures, the financial security network of Napa could soon disappear.

You can reach the author Edward Booth at 707-521-5281 or Edward.booth@pressdemocrat.com.