Council accepts year-end financial report, directs staff on fund allocations; unanimously approves city manager agreement

The Napa City Council voted to accept and file the fiscal year 2024–25 Annual Comprehensive Financial Report after presentations from Finance Director Donna Lee and Budget Officer Seth Anderson showing audited results with revenues above budget and expenditures below budget, leaving $8.9 million in available unassigned general fund balance. "Revenues came in above budget and expenditures were below budget resulting in $8,900,000 in available fund balance," Donna Lee said.

Staff proposed an initial allocation of the $8.9 million that would use $5,000,000 for demolition and preliminary planning of the Harvest recreational site, contribute $3,500,000 to the Section 115 trust to reduce unfunded accrued liabilities, and deposit $400,000 to true up operating reserves; staff asked the council to accept the report and direct staff to return with allocation recommendations. Councilmember Painter moved to accept and file the report and asked staff to return with recommendations on how to allocate the unassigned general fund balance; the motion carried.

On a separate item, Liz Hapkirk (city manager’s office) presented an amended and restated employment agreement for City Manager Steve Potter that removes expired references to pandemic-era pay reductions and keeps his overall compensation unchanged, per Potter’s request. Council members thanked Potter for his leadership; the council then moved and unanimously adopted a resolution approving the amended agreement.

The meeting adjourned to closed session for two litigation matters under Government Code section 54956.9(d)(1), with staff noting Councilmember Lourdes recused herself from one matter because of an affiliation with Blue Oak Schools.