City of Fort Bragg
Mid-Year Budget FY 2026
WATER ENTERPRISE FUND
The Water Enterprise is responsible for providing safe, clean, and reliable water at adequate pressures and volumes to serve residents, businesses, and public facilities throughout the City of Fort Bragg. The Water Department’s core services include raw water collection, water treatment, and the distribution of treated water for domestic and commercial use.
The current Water Enterprise rate structure continues to function as intended, fully supporting operational needs, maintaining the required operating reserve, and generating modest funding for infrastructure upgrades, replacements, and ongoing maintenance. To ensure long‑term financial sustainability and to provide more than modest funding for future operational and capital needs, a new rate structure is scheduled to take effect on July 1, 2026.
Fund reserves remain strong, totaling $3.82 million at the beginning of fiscal year 2026. These reserves provide stability for operations, support planned capital improvements, and help safeguard the system against unforeseen events.
While the Water Enterprise rate structure is operating as intended, supporting all operational needs, maintaining the operating reserve, and accumulating modest funds for infrastructure upgrades, replacements, and maintenance, a new rate structure will be implemented effective July 1, 2026 to ensure that adequate and not just modest funds are available for operations and infrastructure. Fund reserves remain strong at $3.82 million at the beginning of fiscal year 2026.
FY 2023/24
Actuals
FY 2024/25
Actuals
Adopted
Budget
Approved Net
Budget
Amendments
Amended
Budget
Pro Rated
Budget as of
12/31/2025
YTD Actual
12/31/2025
Mid-Year
Variance %
Variance
Budget vs.
Actual
Estimated Year
End
Forecast
Surplus/
(Shortfall)
Charges for services $ 2,950,767 $ 2,953,561 $ 2,959,574 $ 2,959,574 $ 1,479,787 $ 1,773,551 60% $ 293,763 $ 2,975,074 $ 15,500 Capacity Fees 20,600 28,261 20,000 20,000 10,000 11,101 56% 1,101 20,000 - Investment Interest 235,410 140,057 111,891 111,891 55,946 - 0% (55,946) 111,891 - Other revenue 85,096 68,610 41,000 41,000 20,500 18,318 45% (2,182) 41,000 - Total Revenue 3,291,872 3,190,488 3,132,465 - 3,132,465 1,566,233 1,802,970 58% 236,737 3,147,965 15,500 Personnel services $ 633,921 747,905 774,484 774,484 387,242 409,175 53% 21,933 776,628 (2,144) Operations 1,873,531 1,209,141 1,447,341 209,469 1,656,809 828,405 239,128 14% (589,277) 1,707,321 (50,512) Utilities 192,471 199,288 200,000 200,000 100,000 105,862 53% 5,862 192,000 8,000 Capital outlay 45,978 5,531 250,000 8,225 258,225 129,113 - 0% (129,113) 258,225 - Repairs & maintenance 45,584 74,557 67,000 - 67,000 33,500 23,007 34% (10,493) 57,000 10,000 Insurance 53,392 68,287 72,384 72,384 36,192 74,193 102% 38,001 72,384 - Interest/Debt service * 25,370 - - - - - - - -
Depreciation ** 353,968 338,922 - - - - - - -
Total Expenditures 3,224,216 2,643,630 2,811,209 217,694 3,028,903 1,514,452 851,366 28% (663,086) 3,063,559 (34,656) Net Revenue/(Expense) $ 67,656 $ 546,858 $ 321,256 $ (217,694) $ 103,562 $ 51,781 $ 951,604 $ 899,823 $ 84,406 (19,156) * Audited results do not include payment of principal which is not an expense in full accrual accounting $ 2,304,708 $ 576,177.03 ** Depreciation Expense is not budgeted and therefore not included in calculation of budget variance
WATER ENTERPRISE
At mid‑year, the Water Enterprise Fund is performing in line with expectations and is projected to finish the fiscal year with a slight surplus. The fund is fully supported by user fees, with total revenues through December reaching $1.80 million, or 58% of the prorated budget. Revenues are generally tracking as anticipated, and total year‑end revenues are estimated at $3,147,965.
Expenditures remain well below prorated levels at mid-year, with year‑to‑date spending of $851,366, or 28% of the prorated budget. Personnel services and utilities are tracking close to expectations, while underspending in operations, capital outlay, and repairs & maintenance reflects project timing and delayed procurement. Total expenditures are projected to end the year at $3,063,559.
Overall, the Water Enterprise Fund is expected to close the fiscal year with a modest surplus of approximately $84,406, effectively maintaining a near break‑even position. While this surplus supports ongoing operational needs, it is not sufficient to materially increase reserves, which remain stable but unchanged.
City of Fort Bragg
Mid-Year Budget FY 2025/26
WASTEWATER ENTERPRISE FUND
The Wastewater Enterprise, operated by Municipal Improvement District No. 1, is responsible for providing a safe and reliable sanitary sewer system to serve residents, businesses, and public facilities throughout the City of Fort Bragg. The Enterprise also operates the City’s wastewater treatment facility in full compliance with state and federal regulatory requirements. Core services include coordinating operations, monitoring, maintenance, and related activities for the wastewater treatment plant and sanitary pumping stations. The Enterprise provides both primary and secondary treatment of wastewater, as well as treatment and conditioning of solids, resulting in a high‑quality effluent suitable for ocean discharge.
The current Wastewater Enterprise rate structure continues to function as intended, fully funding core operations, maintaining required reserves, supporting debt obligations, and building resources for future infrastructure upgrades, replacements, and maintenance. To ensure long‑term financial sustainability and to provide more than modest funding for future operational and capital needs, a new rate structure will take effect on July 1, 2026.
Fund reserves remain strong, totaling $1.72 million at the beginning of fiscal year 2026. These reserves provide stability for operations, support planned capital improvements, and help safeguard the system against unforeseen events.
FY 2023/24
Actuals
FY 2024/25
Actuals
Adopted
Budget
Approved Net
Budget
Amendments
Amended
Budget
Pro Rated
Budget as of
12/31/2025
YTD Actual
12/31/2025
Mid-Year
Variance %
Variance
Budget vs.
Actual
Estimated Year
End
Forecast
Surplus/
(Shortfall)
Charges for services $ 3,416,929 $ 3,391,326 $ 3,411,845 $ 3,411,845 $ 1,705,922 $ 1,948,219 57% $ 242,297 $ 3,464,528 $ 52,683 Capacity Fees 18,928 21,487 53,395 53,395 26,698 4,837 0 (21,860) 10,000 (43,395) Investment Interest 164,443 95,696 51,000 51,000 25,500 - - (25,500) 60,000 9,000 Other revenue 190,782 146,336 193,610 193,610 96,805 78,109 40% (18,696) 218,610 25,000 Total Revenue 3,791,082 3,654,846 3,709,850 - 3,709,850 1,854,925 2,031,165 55% 176,240 3,753,138 43,288 Personnel services $ 821,413 1,470,930 1,044,127 1,044,127 522,064 614,784 59% 92,721 1,073,032 (28,904) Operations 2,049,989 1,682,155 1,123,553 143,750 1,267,302 633,651 333,827 26% (299,825) 1,192,363 74,940 Utilities 351,532 355,612 325,000 325,000 162,500 170,385 52% 7,885 315,000 10,000 Capital outlay 215,871 198,544 215,871 - 215,871 107,936 - 0% (107,936) 116,994 98,877 Repairs & maintenance 89,434 118,284 159,000 6,857 165,857 82,928 79,385 48% (3,543) 159,000 6,857 Insurance 113,349 150,154 152,814 152,814 76,407 156,529 102% 80,123 157,100 (4,286) Interest/Debt service * 92,010 90,130 185,675 185,675 92,838 - (92,838) 312,996 (127,321) Depreciation ** 816,971 814,971 - - - - - - -
Total Expenditures 4,550,568 4,880,781 3,206,040 150,606 3,356,646 1,678,323 1,354,910 40% (323,413) 3,326,484 30,162 Net Revenue/(Expense) $ (759,486) $ (1,225,935) $ 503,810 $ (150,606) $ 353,204 $ 176,602 $ 676,255 $ 499,653 $ 426,654 73,450 * Audited results do not include payment of principal which is not an expense in full accrual accounting ** Depreciation Expense is not budgeted and therefore not included in calculation of budget variance
WASTEWATER ENTERPRISE
At mid‑year, the Wastewater Enterprise Fund is performing steadily, with both revenues and expenditures trending toward a stable year‑end position. Total revenues through December reached $2.03 million, or 55% of the prorated budget, driven primarily by consistent Charges for Services. Year‑end revenues are projected at $3,753,138, slightly above the adopted budget.
Expenditures total $1,354,910 at mid‑year, or 40% of the prorated budget. Personnel costs are running higher than planned, while operations, capital outlay, and repairs & maintenance are underspent due to project timing and delayed procurement. Utilities are tracking close to budget, and Insurance is slightly above the prorated amount but expected to remain within the annual allocation. Total expenditures are projected to end the year at $3,326,484.
Overall, the fund is expected to close the fiscal year with a surplus of approximately $426,654, supported by strong charges for services revenue.
City of Fort Bragg
Mid-Year Budget FY 2026
CV STARR & PARKS & RECREATION DEPARTMENT
The C.V. Starr Community Center and Sigrid & Harry Spath Aquatic Facility (C.V. Starr Center) is a 43,000-square-foot, multi-use facility that serves as a vital recreational and wellness hub for the community. The Center offers an array of amenities, including an indoor water park, fitness and exercise rooms, weight rooms, and community meeting spaces. The surrounding grounds further enhance the facility’s offerings with a dog park, skateboard park, and petanque courts.
The City of Fort Bragg owns the C.V. Starr Center. Operational, maintenance, and capital improvement costs are partially offset by restricted sales and property tax revenues, which are specifically allocated to the C.V. Starr Enterprise Fund. This dedicated funding structure supports the long-term sustainability of the facility.
Historically, the City contracted with the Mendocino Coast Recreation and Parks District (MCRPD) for day-to-day operations and maintenance. However, in August 2023, the MCRPD Board issued formal notice to terminate the operating agreement, initiating a six-month transition period to allow for an orderly change in operations.
In response, the C.V. Starr Ad-Hoc Committee, in close coordination with City staff, developed a comprehensive transition plan to ensure continuity of services. As of February 2024, the C.V. Starr Center has officially transitioned to City operation. This strategic move ensures the uninterrupted delivery of high-quality recreational services and facilities, reinforcing the City’s commitment to promoting community well-being and quality of life.
FY 2023/24
Actuals
FY 2024/25
Actuals Adopted Budget
Approved Net
Budget
Amendments
Amended
Budget
Pro Rated
Budget as of
12/31/2025
YTD Actual
12/31/2025
Mid-Year
Variance %
Variance Budget
vs. Actual
Estimated Year
End
Forecast
Surplus/
(Shortfall)
Charges for services $ 680,071 $ 911,110 $ 873,021 $ 873,021 $ 436,510 $ 442,353 51% $ 5,842 $ 743,500 $ (129,521) Sales tax 1,169,582 1,350,872 1,230,000 1,230,000 615,000 415,052 34% (199,948) 1,230,000 - Property tax 309,827 326,804 311,647 311,647 155,823 186,552 60% 30,729 311,647 - Investment Interest 95,242 113,035 30,000 30,000 15,000 - 0% (15,000) 42,000 12,000 Other revenue (114,738) 13,592 20,771 20,771 10,386 32,501 156% 22,115 35,295 14,524 Total Revenue 2,139,985 2,715,413 2,465,439 - 2,465,439 1,232,719 1,076,457 44% (156,262) 2,362,442 (102,997) Personnel services $ 1,091,157 1,305,340 1,079,985 1,079,985 539,993 702,734 65% 162,741 1,120,975 (40,990) Operations 266,512 969,354 492,094 41,970 534,064 267,032 259,391 49% (7,641) 530,100 3,964 Utilities 354,859 410,100 420,000 420,000 210,000 205,155 49% (4,845) 385,000 35,000 Capital outlay 24,547 93,099 - 9,725 9,725 4,862 2,835 29% (2,027) - 9,725 Repairs & maintenance 56,270 94,114 40,000 26,795 66,795 33,398 5,666 8% (27,731) 66,795 - Insurance 211,248 - - - - - - 15,000 (15,000)
Interest/Debt service * - - - - - - - 144,842 (144,842) Depreciation ** 675,919 700,585 - - - - - - -
Total Expenditures 2,680,511 3,572,592 2,032,080 78,490 2,110,570 1,055,285 1,175,782 56% 120,497 2,262,713 (152,143) Net Revenue/(Expense) $ (540,527) $ (857,179) $ 433,359 $ (78,490) $ 354,869 $ 177,434 $ (99,324) $ (276,759) $ 99,729 (255,140) * Audited results do not include payment of principal which is not an expense in full accrual accounting ** Depreciation Expense is not budgeted and therefore not included in calculation of budget variance
CV STARR ENTERPRISE
The C.V. Starr Center and Parks and Recreation programs continue to demonstrate steady recovery and growth, despite operational challenges experienced during the fiscal year.
In FY 2024–2025 and continuing into the first half of FY 2025–2026, the City made significant investments to address deferred maintenance at the C.V. Starr Center. These improvements included critical upgrades to the HVAC system, skylight repairs, water slide repairs, leisure pool boiler, Ultra violet disinfection system and other facility maintenance projects necessary to ensure long-term functionality and user experience. As part City of Fort Bragg
Mid-Year Budget FY 2025/26
of this work, the pool was closed for more than two months during January and February, which had a direct impact on revenue performance during that period.
Despite these temporary disruptions, the Center has reported strong gains in membership growth. While revenues were partially offset by facility closures, the underlying trend reflects increased community engagement and demand for services. The Center is projected to end the year at $2.3 million, $102k under budget.
The City Manager and C.V. Starr Center
staff have made a concerted effort to
increase memberships through enhanced
marketing initiatives, community outreach,
and improved programming. As a result,
both membership revenues and general
admissions have shown a strong
recovery, reaching approximately 61% of
budgeted revenue by the end of the
second quarter.
Additionally, rate adjustments approved by the City Council in the second quarter—effective January 2025— are projected to generate approximately $90,000 in additional revenue for the remainder of the fiscal year, further strengthening the Center’s financial position.
Moving forward, with major maintenance projects largely completed and full facility access restored, the Center is well-positioned to continue rebuilding its membership base, increase program participation, and improve overall cost recovery. Parks and Recreation programming will also play a key role in expanding community engagement and maximizing use of City facilities.
Sales tax revenues allocated to the C.V. Starr Center are performing in line with quarterly budget projections, indicating the Center remains on track to achieve its overall FY 2025–2026 revenue target of approximately $1.2 million.
In addition, property tax allocations are projected to increase by approximately 6% and will be realized in the third quarter, consistent with typical timing. These revenues will provide an important boost to the Center’s financial position and support overall budget stability. Together, these revenue streams reinforce the Center’s improving financial outlook and align with the City’s broader strategy to ensure long-term operational sustainability.
EXPENDITURES
The City has implemented a series of strategic initiatives to enhance operational efficiency and drive membership growth at the C.V. Starr Center. A key step included consolidating fitness class offerings from 70 to 27 classes and temporarily closing the Center on Sundays to improve cost recovery and align programming with demand. Additionally, fitness instructors (excluding those participating in the Silver Sneakers program) have transitioned from employee status to independent contractors, maintaining service quality while improving cost-effectiveness. The City plans to expand class offerings under this revised model in the coming months.
Despite these efforts, the Center continues to face operational challenges, particularly in recruiting qualified lifeguards, with at least four part-time and two full-time positions remaining vacant. These positions are critical to maintaining full operational hours, including weekends and holidays, and ensuring safety standards are met. 0 1000
2000
3000
Active CVSCC Memberships
Jun-25 Jul-25 Aug-25 Sep-25 Oct-25
Nov-25 Dec-25 Jan-26 Feb-26
City of Fort Bragg
Mid-Year Budget FY 2026
Looking ahead, the City is building on its Strategic Plan by formally establishing a dedicated Parks and Recreation Department in July 2025. This effort is intended to bolster and complement the programs offered by the Mendocino Coast Recreation and Park District (MCRPD), while expanding City-led recreation opportunities across Fort Bragg. Key focus areas include activating the new Bainbridge Park, maximizing utilization of the C.V. Starr Center, and expanding youth programs and community events in partnership with the Police Department. As part of this expansion, expenditure increases include the addition of a full-time Parks and Recreation Coordinator position to support programming, event activation, and ongoing operations— particularly at Bainbridge Park. A budget amendment of $144,842 is been requested to account for 2025 solar equipment interest that wasn’t included in the current budget.
The C.V. Starr Center delivered a strong financial performance in FY 2024–2025, generating a surplus of approximately $1.2 million and increasing reserves to nearly $2.9 million.
For FY 2025–2026, the Center is projected to end the year with a more modest surplus of approximately $99,000, reflecting ongoing investments in facility improvements, programming, and operations.
The Center has identified approximately $1.6 million in Capital Improvement Program (CIP) needs over the next four years, which is expected to draw down these reserves. In response, the City is actively pursuing grant funding opportunities to offset capital costs and reduce reliance on reserve funds.
Collectively, these efforts reflect a strategic shift toward expanding recreation services, improving cost efficiency, and maximizing the use of City facilities to enhance community quality of life while maintaining longterm financial sustainability.
City of Fort Bragg
Mid-Year Budget FY 2025/26
BROADBAND ENTERPRISE FUND
FY 2023/24
Actuals
FY 2024/25
Actuals
Adopted
Budget
Approved Net
Budget
Amendments
Amended
Budget
Pro Rated
Budget as of
12/31/2025
YTD Actual
12/31/2025
Mid-Year
Variance %
Variance
Budget vs.
Actual
Estimated
Year End
Forecast
Surplus/
(Shortfall)
Charges for services $ - $ - $ 2,317,605 $ 2,317,605 $ 1,158,803 $ 1,333,394 58% $ 174,591 $ 2,256,567 $ (61,038) Other revenue - - - - - 12 12 - -
Total Revenue - - 2,317,605 - 2,317,605 1,158,803 1,333,405 58% 174,603 2,256,567 (61,038) Personnel services - - 988,663 988,663 494,332 475,300 48% (19,032) 872,857 115,806 Operations - - 1,212,402 1,212,402 606,201 565,409 47% (40,792) 1,506,343 (293,941) Utilities - - 116,540 116,540 58,270 6,148 5% (52,122) 12,000 104,540 Repairs & maintenance - - - - - 6,398 6,398 6,400 (6,400) Insurance - - - - - - - - -
Other operating - - - - - 17,838 17,838 30,046 (30,046) Interest/debt Service * - - - - - - - - -
Depreciation ** - - - - - - - - -
Total Expenditures - - 2,317,605 - 2,317,605 1,158,803 1,071,092 46% (87,711) 2,427,646 (110,041) Net Revenue/(Expense) $ - $ - $ - $ - $ - $ 262,313 $ 262,313 $ (171,079) (171,079) * Audited results do not include payment of principal which is not an expense in full accrual accounting ** Depreciation Expense is not budgeted and therefore not included in calculation of budget variance
BROADBAND ENTERPRISE
The City’s Broadband Enterprise represents a major strategic investment aligned with the City Council’s longterm vision to enhance economic development, improve service delivery, and build critical infrastructure for the future. The City is currently constructing a municipally owned fiber-optic network with a total investment of approximately $17.6 million. This initiative supports the City’s Strategic Plan by expanding access to highspeed, reliable internet, fostering business growth, enabling remote work opportunities, and strengthening overall economic competitiveness.
In FY 2024–2025, the City acquired Mendocino Community Network (MCN), with full integration into City operations effective July 1, 2025. To lead this effort, the City Manager appointed a Broadband Director in September 2025, establishing dedicated leadership to guide the transition and long-term success of the utility.
Due to construction delays, the initial rollout of fiber service within City limits is now anticipated in
Summer 2026. In the interim, the Broadband
Enterprise has focused on maintaining and
stabilizing existing MCN services while developing
a comprehensive transition plan for future fiber
customers. The City has also taken key steps to
position the Enterprise for long-term success,
including securing a lease on Elm Street for a new
broadband office, advancing rebranding efforts,
and developing a marketing strategy to support
customer acquisition upon service launch.
During the first two quarters of the fiscal year, the Enterprise has delivered steady and reliable revenue performance while identifying cost-saving opportunities across operations. The largest operational expense remains the resale utility agreement with Sonic. A budget amendment of $362,552 is requested to account for higher-than-anticipated costs associated with maintaining existing service levels. The original budget of $714,000 assumed a phased transition of customers to the City’s fiber network; however, due to construction delays, this transition has not yet occurred, requiring continued City of Fort Bragg
Mid-Year Budget FY 2026
reliance on resale services and adjustments to both expenditure and revenue projections.
Personnel costs, including salaries and benefits, are currently projected to come in under budget. To support ongoing operations and prepare for future service expansion, the Enterprise is proposing to convert an existing part-time position to full-time.
Looking ahead, Broadband Enterprise is focused on completing construction, launching fiber service, and executing a successful customer transition strategy. This initiative represents a transformative investment in the City’s infrastructure, with long-term benefits including increased local control, improved service reliability, competitive pricing, and enhanced economic development opportunities.