The quaint town of Yountville in Napa County has the opposite problem of most communities with measures on the ballot this November: it has raised so much money through local taxes that it is now asking voters to raise its appropriations limit.
According to state law, municipalities are restricted in the total amount of tax revenue they can legally spend each fiscal year. The limit is adjusted annually using factors such as population changes and the cost of living.
Measure Y would update the town’s appropriations limit, sometimes referred to as the Gann Limit, for a period of four years. It requires a simple majority to pass.
Yountville reviewed the town’s limit and tax projections for the next four years and found it necessary to increase the current appropriations limit by $3 million, plus one-quarter of transit occupancy tax revenue — also known as money from tourists staying in town — to ensure these revenues can be spent on essential services, the town said.
According to the town, Yountville gets 88% of its revenue from TOT, property and sales taxes. Fifty-eight percent of general fund revenues come from the TOT.
“Local property tax revenues account for approximately 18% and are currently insufficient to cover the costs of contracted law enforcement, fire, and emergency medical services,” the town said on its information page about Measure Y.
Measure Y doesn’t create a new tax nor does it raise taxes. It would instead allow the town to appropriate revenues it has already received.
The town said raising the appropriations limit is necessary or Yountville will not be able to maintain levels of public service.
If passed, Measure Y will be the 11th appropriation limit override presented to voters since 1985, the town said.
The argument for Measure Y is written by the mayor and four councilmembers.
“Measure Y allows the Town to continue to use these revenues (without increasing local taxes) for services which make a difference in the quality of life for all Yountville residents,” reads the argument in favor of the measure.
The town has not released an official argument against the measure.
