Saint Helena adopts biennial budget; council directs city manager to revise chamber welcome-center agreement

The City Council on June 10 adopted the Fiscal Years 2025-26 and 2026-27 biennial budget and directed the city manager to return with a revised contract for the Saint Helena Chamber of Commerce and the city's welcome center to reflect council direction on funding levels.

City Manager Justin Camillo and Director of Administrative Services (acting) presented updated budget figures and a series of adjustments since the council's budget review on May 13. Staff said the city faces structural pressures including rising pension obligations and other fixed costs. The presentation noted a near-term fiscal gap and $1.9 million in budget reductions made since the draft, and that the city would use approximately $1.4 million from reserves to balance FY 2025-26. Staff said the water and wastewater funds remain solvent but that debt coverage and reserve targets are being monitored.

Camillo described personnel and management adjustments: the assistant city manager and city clerk positions were held vacant for savings; the public works director will carry the assistant city manager title without additional compensation; the city clerk functions will be performed by existing staff pending recruitment. Staff also reported new projections for sales tax and other revenue adjustments and reminded the council that a number of longer-term studies (efficiency study, classification and compensation review, cost-allocation plan) will return with more information that may affect longer-range planning.

A substantial portion of the public discussion focused on the Chamber of Commerce contribution and operation of the city welcome center. The Chamber representatives said they view their role as a shared civic service rather than a pure subsidy and asked the city to continue funding the welcome center at a level that sustains daily operations and destination marketing. Marcus (board member) said the Chamber proposed a $160,000 two-year contract for the remaining lease term and that they had already offered a $25,000 voluntary reduction prior to May 13. Amy Corralba Salazar, CEO and president of the Saint Helena Chamber of Commerce, said the Chamber would continue operations with $125,000 if that is the final city contribution but warned that reduced funding would likely curtail other services such as destination marketing and seasonal attractions like the wine-barrel tree.

City Manager Camillo said his office recommended a one-year contract to allow time to create a joint marketing strategy with Visit Napa Valley and the local tourism-improvement district and to obtain accounting transparency and outcomes reporting from the Chamber. He said a one-year arrangement also aligns with council discretion over limited fiscal resources and the city's budgeting calendar. Councilmember Barrick moved to adopt the budget and then moved a separate direction asking staff to return with an amendment to the Chamber contract consistent with council guidance. The council voted unanimously on both motions.

Councilmembers discussed the possibility of setting aside funds to address pension liabilities but agreed to evaluate contributions after closing the current fiscal year and reviewing audit results and other studies that will be available later in the fiscal year. Staff said the council will receive midyear and audited results and that the finance committee will continue to work on revenue and liability strategies.

The council adopted the biennial budget as presented and directed the city manager to prepare the Chamber contract amendment reflecting council direction; staff said any contract adjustment would be processed as a budget amendment.