Napa County waives $5m utility debt to unlock grant funding for Berryessa upgrades

Napa County waives $5m utility debt to unlock grant funding for Berryessa upgradesThe Napa Berryessa Resort Improvement District is seeking $20 million to overhaul its struggling treatment systems, but needed to clear its balance sheet to qualify for state and federal assistance.

The Board of Supervisors unanimously approved forgiving $5 million in accumulated loans issued to the district since 2008.

Engineering Manager Chris Silk noted the district plans to execute $20 million in capital improvements over the next three to five years to address weak treatment plants and expand wastewater capacity.

The debt forgiveness follows a recently approved $1,560 parcel tax intended to balance the utility's budget.

Supervisors expressed concern over the long-term financial sustainability of the small water system, calling for discussions on transitioning it to a self-sustaining enterprise fund.

Napa County has forgiven $5 million in historical loan debt owed by the Napa Berryessa Resort Improvement District (NBRID) to clear the way for the utility to pursue state and federal infrastructure grants. The Board of Supervisors unanimously approved the waiver on June 2, removing a significant financial encumbrance that officials said would have disqualified the district from receiving grant funding. Engineering Manager Chris Silk described the move as a critical milestone in the "renaissance" of the district's utilities. With the debt cleared, staff plan to pursue $20 million in capital improvements over the next three to five years, with application assistance provided at no charge by the Rural Community Assistance Corporation. The capital push will target severe vulnerabilities in the district's infrastructure. Silk noted that the current water treatment process at the Steel Canyon facility is poorly equipped to handle emerging algal blooms, an issue that has "genuinely concerned" engineering staff. Furthermore, the district intends to expand its wastewater treatment capacity to accommodate potential future resort development. The planned upgrades will be designed as turnkey systems, featuring plug-and-play piping and instrumentation conduits. The debt forgiveness follows the recent passage of Measure A, which instituted a $1,560 parcel tax to augment user rates and balance the district's budget. Despite the unanimous approval, supervisors voiced strong concerns about the long-term financial viability of the small utility. Supervisor Ramos noted that the system has repeatedly required county bailouts due to a historical failure to establish a capital investment fund. "This should in fact run like an enterprise system. It should pay for itself," Ramos said, suggesting a future referral to the Local Agency Formation Commission (LAFCO) to review the management and sustainability of the county's small water systems. Supervisor Alessio echoed the need for the district to operate as a self-sustaining enterprise fund, though she supported the debt waiver as a necessary step to address the aging treatment systems.