Napa, California

TischlerBise conducted a two-phase Fiscal Equity Study for Napa County, California. A fiscal equity study is an examination of the relationship between taxes and other revenue paid for by residents and businesses to the County, and the services provided by the County in the unincorporated and incorporated areas of the County. The intent was to determine if the unincorporated County subsidized the cost of countywide services in the incorporated areas or if the opposite was true.

Phase I: Fiscal Equity Study was a high-level view of discretionary expenditures (“net County costs”) and revenues classified as either “countywide” or “municipal.” Countywide expenditures represent those costs incurred by the County to provide services throughout the County, including within the incorporated areas. Municipal expenditures are costs that the County incurs to provide municipal-type services in the unincorporated areas such as sheriff and planning. The purpose of the study was to determine whether there was an unincorporated area subsidy of countywide services or a City subsidy of municipal services. The overall finding of the Phase I analysis was that the unincorporated area subsidized countywide services.

Phase II: Fiscal Equity Study was a Service Incidence Study that used geographic information on the County’s expenditures and revenues to allocate costs and revenues to the unincorporated County and/or the incorporated areas. Unlike Phase I, this study included all expenditures, not just net County costs (i.e., those funded by discretionary revenues). It identified distinct services delivered by the County and allocated the expenditures for each service by geographic area—specifically by jurisdiction. The overall finding of the Napa County Service Incidence Study is that in total, the unincorporated area subsidized countywide services provided in the incorporated areas.