The Town of Yountville is in line to receive $558,285 due to the rescue package passed by Congress and signed by the President last week. The Town can use the payment to offset lost revenue, and, as you know, the Town has sustained revenue loss from TOT and sales tax in the fiscal year 2020 and 2021 of over $3 million. So this will definitely help restore funding and lessen the potential impact of utilizing the Revenue Stabilization Fund. Of course, too early to tell yet; we will also need to see where TOT and sales tax ends the year, but a very encouraging payment.
Under the new law, $25 billion will be divided equally among states, while $169 billion will be allocated based on its unemployment rate. States can use the money for pandemic-related costs, offsetting lost revenues to provide essential government services and water, sewer, and broadband infrastructure projects. Entitlement or Non-Entitlement city designation means you are an entitlement city if you are eligible for direct HUD distributions and a non-entitlement city if you are not. The Town of Yountville, Calistoga, and St. Helena are non-entitlement entities, and payments were based on population primarily.
It does come with limitations/restrictions, but one primary use is to make up for lost revenue to ensure government services continue and not have local government suffer job losses. That will be easy to document as the Town has experienced approximately $3 million in combined TOT and sales tax losses compared to FY 18/19 this year. The funds will be paid half within 60 days and the other half next fiscal year.
See what funding will be coming to the other municipalities in Napa County.