Discussion Item 3b
STAFF REPORT
City Council Discussion Item
DATE: May 1, 2025
TO: Honorable Mayor and Council Members
FROM: Measure E Independent Advisory Committee
THROUGH: Aaron Felmlee, Finance Director & Amy Nilsen, City Manager SUBJECT: Measure E Committee Recommendations to Council for Fiscal Year (FY) 2025- 26 Measure E Funds
STAFF RECOMMENDATION:
Receive report as an informational item.
EXECUTIVE SUMMARY:
For Fiscal Year 2025-26 the projected amount to be received from Measure E revenues is $1,884,000.
For reference the City projected to receive $1,933,000 last year. The City Council in previous fiscal years has approved expenditures in the amount of $1,533,533, presented in table 1 below, for additional positions and funds to cover the general fund deficit that the Measure E committee concurred did not need to come back for consideration in future funding years. This left the committee with $350,467 to allocate to Staff and Public recommended expenditures.
SOURCES:
Measure E Revenues $ 1,884,000
USES:
Pay and Benefits:
Parks and Recreation Director 121,218
Recreation Program Supervisor 86,541
Police Community Services Officer 111,499
(2) Police Officer - Detective 419,315
Police Records Clerk 84,960
Transfer to Other Funds
General Fund 100 (To Cover Deficit) 700,000
Transit Fund 590 (Medical Trips to Eureka) 10,000
Total Uses 1,533,533
Net Sources (Uses) $ 350,467
FY 2025-26 MEASURE E
PRIOR EXPENDITURES APPROVED BY COMMITTEE
Discussion Item 3b
The Measure E Committee held a Meeting on April 1, 2025 at 5:30 p.m. in the Council Chambers. City staff from various departments presented proposals generated by community input, public comments, and staff for use of the Fiscal Year 2025-26 Measure E funds for the Committee to review. The Measure E Committee voted unanimously on a motion to recommend the Fortuna City Council consider approving the uses outlined in Exhibit A “FY 2025-26 Measure E Summary”.
The Committee’s recommendation this year includes funding projects from reserves. The projects funded by reserves include Street Maintenance Projects, Storm Drain Maintenance Projects, half of the K-9 program expense, the River Lodge staining project, Bartow field renovations, and general park acquisition and improvements. All these projects were deemed by the Committee as good onetime projects and a good use of the reserves that have been built up over the last two years from Measure E revenues.
Currently, the City is estimating that Measure E will have contributed $2.925 million to General Fund Reserves at the end of fiscal year 2024-25. The Measure E Committee and City Council have previously given directions to keep reserves at 365 days of operating expenditures in the Measure E Fund which would be approximately $2,000,000. This leaves $925,000 that has been put into reserves by Measure E above and beyond the stated reserve goal. This year’s Measure E recommendation includes a column for projects to be funded utilizing a portion of those reserves. The reserve balance will be at an estimated $2.437 million after this year’s recommended projects from reserves are considered. Additional details on both General Fund and Measure E Fund reserves will be presented at the Special Budget Workshop.
A Committee Member has graciously volunteered their time to present the funding list to the City Council and be available for any questions the City Council may have in regard to the funding list.
RECOMMENDED COUNCIL ACTION:
Receive Measure E Committee recommendations for proposed use of FY 2025-26 Measure E Funds as an informational item.
ATTACHMENTS:
• Exhibit A: FY 2025-26 Measure E Summary