Calistoga council adopts Measure D spending categories, keeps utility-subsidy level under annual review

The Calistoga City Council on Aug. 12 approved a policy-level framework for spending Measure D funds that allocates 50% of annual revenues to affordable and “missing middle” housing programs, 25% to land acquisition for housing projects, 15% to construction and rehabilitation programs, and 10% to utility-connection and permit-fee subsidies for qualified residents.

Planning and Building Director Greg Desmond told the council the Measure D fund has generated roughly $1 million a year since the measure’s adoption in February 2019 and that the city’s Measure D balance is just over $2.8 million through the end of the 2025–26 fiscal year. He reviewed past uses of the fund, including a $2 million loan to Lincoln Avenue Apartments (78 units), about $500,000 used to acquire parcels on Earl and Eddie streets for workforce housing, and a $400,000 acquisition loan to Burbank Housing for a four-unit conversion at 1405 Cedar Street. The fund also supports partnerships with the City of Napa Housing Authority and a local utility-bill subsidy program currently administered with Valley Family Centers.

The policy the council adopted is a guideline, not a binding ordinance; Council members emphasized that allocations can be adjusted during annual budget deliberations. Councilmember Giff moved to adopt the staff-suggested categories and to add an explicit direction that the utility-subsidy allocation be reviewed during the city’s annual budget process. The council voted unanimously on a roll call: Council member Eisenberg — aye; Council member Cooper — aye; Council member Giff — aye; Vice Mayor Lopez Ortega — aye; Mayor Williams — aye.

Council discussion centered on whether to shift an additional 5 percentage points from land acquisition into the utility-subsidy category. Councilmember Giff said increasing the utility subsidy would help households facing high water bills; Vice Mayor Lopez Ortega and other council members said the long-term intent of Measure D is to prioritize housing production and land acquisition but supported keeping the current split while formally reviewing the subsidy during the budget cycle. Councilmembers also noted the city will receive usage and allocation data from the Family Center in early 2026 that will inform any future changes.

Director Desmond said the staff report breaks the proposed allocations down against the current fund total and lists recommended program examples for each category. He described the utility-subsidy line as an existing $100,000 allocation that has already been committed to partnerships to assist households; council members asked staff to ensure the subsidy’s performance and need data are explicitly reviewed in next year’s budget workshops.

The council approved the staff-recommended categories and the procedural direction to review the utility-subsidy allocation as part of the next annual budget process. No changes to the percentages were made at the Aug. 12 meeting.

Votes at a glance

- Motion: Adopt Measure D spending categories as described in the staff report and review the utility-subsidy allocation during the annual budget process. Mover: not specified. Second: not specified. Outcome: approved. Roll-call votes recorded as all aye (Eisenberg, Cooper, Giff, Lopez Ortega, Williams).

What the vote means

The adopted framework provides staff with a policy guideline for distributing Measure D revenue across housing production, land acquisition, construction/rehab and a modest utility/permit subsidy. Specific projects and any year-to-year changes will be decided through the city’s normal budget process and can be adjusted by the council if priorities shift or if incoming data from implementing partners suggests different needs.

Next steps

Staff said it will continue administering the existing subsidies with Valley Family Centers and will return to council in the next budget cycle with implementation data and any recommended adjustments.