American Canyon Budget Overview

Investing In The Future

American Canyon is a tight-knit and growing community of 21,714 residents, known for its strong sense of connection, natural beauty and high quality of life. The City is proud to provide essential services that keep the community safe, well-maintained and thriving. In the years ahead, the City's financial priorities focus on maintaining 911 response times and public safety, supporting fire mitigation efforts and investing in the future of parks and recreation. 

Financial Overview

The General Fund is the City’s main operating fund that pays for core services residents use every day, including public safety and 911 response, road maintenance, parks and recreation programs and other essential services. For Fiscal Year (FY) 2026/27, the City expects to receive $34.2 million in General Fund revenue. This revenue comes from several sources, including sales tax, property tax, Transient Occupancy Tax (TOT), also known as a hotel tax and permit fees. Sales tax is one of the largest revenue streams that generated 10% of General Fund revenue in FY 2026-27.

While FY 25/26 wraps up on June 30, the City expects to spend $34.2 million from the General Fund in FY 26/27. Because projected revenues and expenses are balanced, the City is able to continue maintaining current service levels for residents.

Although the budget is currently balanced, the City is growing and will need additional funding to keep up with expenses and long-term priorities such as community safety, fire mitigation and the future of parks and recreation. Within 2025, the City population increased by 2.9% and state housing estimates increased by 5%. For these reasons, the City is considering placing a 1% sales tax increase on the November ballot. 

Public Safety Investment 

Maintaining public safety is a top priority for the City of American Canyon. Law enforcement services are provided through a contract with Napa County Sheriff's Office, which was recently renewed in 2024 for a three-year term. 

The cost of providing public safety services continues to rise as American Canyon grows and demand for services increases. The General Fund Police Department budget for Fiscal Year 2026-27 is $11.5 million, representing 33.7% of the General Fund. Of this amount, $10.5 million funds the City's contract with the Napa County Sheriff's Office. This is reflects a 5.8% increase from last fiscal year. In 2025, American Canyon Police responded to 14,923 calls for service, a 3.5% increase from the previous year. While the contract runs through 2027, the City must plan ahead for inflation, the growing population and future service needs. 

In addition to funding police services, the City's General Fund contributes approximately $261,000 in support to the American Canyon Fire Protection District for Fiscal Year 2026-27. Of this amount, $50,000 pays for fire protection services for City-owned property located outside of the Fire District's service area. The remaining contribution supports the Fire District's financial, administrative, and facility needs, including treasury and investment management, payroll and accounts payable processing, and audit coordination. In addition, the City provides in-kind services through shared IT software applications, maintenance of the Council Chambers for Fire District meetings, and maintenance of the 911 Donaldson Way Public Safety Building, which houses both the American Canyon Police Department and the American Canyon Fire Protection District. These services are documented in the City's Annual Comprehensive Financial Report (ACFR)(PDF, 89MB)  and reflect the City's ongoing commitment to supporting coordinated public safety services for the community. 

Fire Mitigation Goals 

Managing fire risk is another local priority for all cities located in Napa County, including American Canyon. Large areas of American Canyon are labeled as "High" or "Very High" fire hazard zones, making local prevention and preparedness efforts especially important. The City has several strategies implemented to help mitigate risk and protect the community. This includes enforcing strict weed abatement requirements, using sheep and goat grazing to thin out dry vegetation, mowing and maintaining vegetation in high-risk areas, partnering with local ranchers to graze our open spaces like Newell Open Space Preserve, and deploying early-warning technology to ensure a fast response if a fire starts.

Since implementing these environmentally friendly and economically sustainable fire mitigation methods, the City has grazed an estimated 800 acres throughout American Canyon to reduce vegetation and wildfire fuel loads. The total annual cost of these fire mitigation efforts from the City's General Fund is approximately $158,000. Maintaining local funding through a sales tax increase allows the City to continue these proactive efforts in American Canyon.

Future of Parks and Recreation 

The City of American Canyon is home to more than 1400 acres of developed parkland, recreation facilities, and open space. These spaces play an important role in the City's community by providing places for residents to gather, exercise and enjoy time outdoors. 

Over the past year, the City has been developing a Parks and Recreation Master Plan to guide future investments in local parks, facilities and programs. The City worked with experts and community members to ascertain long-term needs and priorities, and the master plan was adopted by the City Council on June 16. 

The master plan includes several major future projects and park improvements, totaling more than $58 million to complete. Some of these projects include synthetic turf fields, fixing and enhancing the aquatics facility, and a new community center with gymnasium.  To have these projects come to fruition, the City will need to identify additional funding. New revenue would help American Canyon implement the Parks and Recreation Master Plan as envisioned by the community.  

Sales Tax Overview

Sales tax is one of the City's strongest revenue sources. In FY 2026-27, sales tax is projected to generate $3.5 million in revenue for the General Fund. 

To help address local funding needs, the City is considering placing a local 1% (or 1-cent) sales tax measure on the November 2026 ballot. The measure would bring American Canyon's overall sales tax rate from 7.75% to 8.75%. 

If approved by the voters, this measure is estimated to generate approximately $3.7 million annually. These funds would stay in American Canyon and remain under local control to support community priorities such as 911 response, fire mitigation, enhanced parks and recreation programs and maintenance of City services. 

American Canyon's sales tax rate is 7.75%, which is the lowest amongst its closest neighboring cities. The sales tax would apply to everyday items like clothes and gasoline. Essential goods, including groceries, utilities, medical products, baby formula and diapers, would remain exempt. 

Fiscal Challenges 

Like many cities across California, American Canyon is facing rising costs due to inflation, increased demand for emergency response, street maintenance, park maintenance and other essential services. As costs continue to grow, expenses are projected to outpace revenues starting in fiscal year (FY) 2029-30, resulting in a deficit of almost $1 million by FY 2032-33.

While the City may be able to use reserves to cover some of the costs in the short term, reserves are meant to be one-time funds and are not long-term solutions for ongoing services. The proposed 1% sales tax increase is intended to allow the City to plan ahead and cover the projected deficit. 

The Napa County Wildlife Preparedness Measure

In addition to the proposed 1% sales tax, Napa County citizens are currently exploring the Napa County Wildfire Preparedness, Watershed Protection and Open Space Preservation Act. This measure proposes a 0.5% county-wide sales tax. If passed, revenue from the countywide measure would be shared across Napa County. Because the funds would be distributed countywide, only a small portion would return to American Canyon. 

Even with the .5% proposed countywide tax, the City projects a deficit of $1 million by FY 32-3, which the proposed 1% City tax is intended to cover. The City tax will go toward City fire mitigation, parks and public safety needs. If both are passed, taxpayers will see a total sales tax rise of 1.5%.

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