Consent Item 4e
STAFF REPORT
City Council Consent Item
DATE: June 16, 2025
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Finance Department Monthly Report for May 2025 STAFF RECOMMENDATION:
Receive report as an informational item.
EXECUTIVE SUMMARY:
Sales Tax Update:
Finance staff continue to closely monitor the City’s sales tax revenue streams. Sales tax revenue is the largest General Fund revenue source for the City and as such fluctuations in sales tax have the largest effect on the City’s fiscal health.
For sales tax receipts between October and December 2024 the City of Fortuna actual receipts, excluding reporting aberrations, were down 3.2% as compared to October to December 2023. For comparison the County realized a 1.3% increase and the State of California realized a 1.1% decrease. The reason the County far outpaced the City was because of one singular business in the City of Fortuna having an unsustainably high revenue quarter a year ago. This business was included in the Business and Industry category and during October through December 2024 had a more typical revenue quarter. If that business was removed all remaining businesses were close to the 1.3% increase the County realized. Additional information about how the City’s sales tax performed during the month of October to December 2024 can be found in attachment ‘B’.
New Fiscal Year:
With the close of fiscal year 2024-25 at the end of the month Finance staff are working diligently on both closing out fiscal year 2024-25 and preparing to open up next fiscal year 2025-26. The year-end process entails running numerous reports, making audit adjustment entries, reconciling accounts, and ensuring all invoices for the 2024-25 year are paid timely. The new fiscal year entails uploading the new budget, issuing open purchase orders, and updating payroll numbers to reflect the fiscal year 2025-26 rates for wages, Cal-PERS pension plans, Health, and other benefits.
Measure E Update:
The Measure E committee’s next regularly scheduled meeting is set for September 16, 2025 at 5:30pm. The primary purpose of this meeting will be for Staff to review with the Committee the list of Measure E funded projects that were included in the Council Adopted Budget for fiscal year 2025-26.
Consent Item 4e
List of Measure E items funded this month:
• (2) Police Detective Positions
• Police Community Services Officer Position
• Police Records Clerk Position
• Parks and Recreation Director Position
• Recreation Program Supervisor Position
• Transit Trips to Eureka for Seniors
• PT Code Compliance Officer Position
• K-9 Program
• Encampment Outreach and Cleanup Services
• Storm Drain Maintenance Projects
• Street Maintenance Projects
An activity log displaying important Finance data is attached for informational purposes.
RECOMMENDED COUNCIL ACTION:
Receive Finance Department Monthly Report. Consent Agenda vote.
ATTACHMENTS:
• Finance Staff Activity Log for May 2025
• Q4 2024 City of Fortuna Sales Tax Newsletter