Fortuna City Council
May 18, 2026

CITY OF FORTUNA

FORTUNA, CALIFORNIA

ANNUAL FINANCIAL REPORT
JUNE 30, 2025

TABLE OF CONTENTS
PAGE
i - iii
iv
v
1-3
4-12

INTRODUCTORY SECTION
Letter of Transmittal
List of Principal Officials
Organization Chart

FINANCIAL SECTION
Independent Auditors’ Report
Management’s Discussion and Analysis - Required Supplementary Information (Unaudited) Financial Statements:

Government-wide Financial Statements:

Statement of Net Position 13
Statement of Activities 14
Fund Financial Statements:

Governmental Funds - Balance Sheet 15
Governmental Funds - Statement of Revenues,
Expenditures, and Changes in Fund Balances 16
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds
to the Statement of Activities 17
Proprietary Funds – Statement of Net Position 18
Proprietary Funds - Statement of Revenues,
Expenses, and Changes in Fund Net Position 19
Proprietary Funds - Statement of Cash Flows 20
Statement of Fiduciary Net Position 21
Statement of Changes in Net Position – Private Purpose Trust Fund 22 Notes to Basic Financial Statements 23-45
TABLE OF CONTENTS (continued)
PAGE
REQUIRED SUPPLEMENTARY INFORMATION SECTION (Unaudited):

Statement of Revenues, Expenditures, and Changes in
Fund Balances – Budget and Actual – General Fund 46
Statement of Revenues, Expenditures, and Changes in
Fund Balances – Budget and Actual – City Housing Fund 47 Schedule of the Local Government’s Proportionate Share
of the Net Pension Liability – All Plans 48
Schedule of Contributions – All Plans 49

SUPPLEMENTARY SECTION
Combining Statements and Individual Fund Schedules - Nonmajor Funds:

Combining Balance Sheet - Nonmajor Governmental Funds 50-51 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds 52-53
Schedules of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Budgetary Basis) Nonmajor Governmental Funds 54-63 STATISTICAL SECTION (Unaudited)
Financial Trends Information:

Net Position by Component – Last Ten Fiscal Years 64
Changes in Net Position – Last Ten Fiscal Years 65-67
Fund Balances Governmental Funds – Last Ten Fiscal Years 68 Changes in Fund Balances – Governmental Funds - Last Ten Fiscal Years 69 Revenue Capacity Information:

Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 70
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 71 Principal Property Taxpayers - Current Year and Previous Nine Years 72 Property Tax Levies and Collections - Last Ten Fiscal Years 73 Sales Tax Revenue Base Data - Last Ten Fiscal Years 74
Principal Sales Taxpayers - In Alphabetical Order -
Current and Previous Nine Years Ago 75
TABLE OF CONTENTS (concluded)
STATISTICAL SECTION (concluded) PAGE
Transient Occupancy Tax Revenue Base Data - Last Ten Fiscal Years 76 Principal Transient Occupancy Taxpayers - In Alphabetical Order Last Ten Fiscal Years 77
Water and Sewer Rates - Last Ten Fiscal Years 78
Water Revenue Concentration Data - Last Ten Fiscal Years 79 Debt Capacity Information:

Ratio of Outstanding Debt by Type - Last Ten Fiscal Years 80 Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years 81 Direct and Overlapping Governmental Activities Debt - Current Year 82 Legal Debt Margin Information - Last Ten Fiscal Years 83 Pledged Revenue Coverage - Last Ten Fiscal Years 84
Demographic and Economic Information:

Demographic and Economic Statistics - Last Ten Fiscal Years 85 Principal Employers - Last Ten Fiscal Years 86
Operating Information:

Full Time Equivalent City Employees - Last Ten Fiscal Years 87 Operating Indicators - Last Ten Fiscal Years 88
Capital Asset Statistics - Last Ten Fiscal Years 89

INTRODUCTORY SECTION
May 5, 2026
Citizens of the City of Fortuna
Honorable Mayor and
Members of the City Council
We are pleased to submit the City of Fortuna’s Comprehensive Annual Financial Report for the fiscal year ended June 30, 2025. The city follows a policy of hiring a licensed certified public accountant to conduct an annual audit and to prepare a complete set of financial statements in conformity with generally accepted accounting principles (GAAP). This annual report is published to fulfill that policy for the fiscal year ended June 30, 2025.

Management of the City of Fortuna assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive frame-work of internal control that the city has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the city’s financial statements are free of material misstatements.

The firm of O’Connor & Company, has issued an unmodified independent auditor’s report on the City of Fortuna’s financial statements for the fiscal year ended June 30, 2025. The independent auditor’s report is located at the front of the financial section of this report.

Management’s Discussion and Analysis (“MD&A”) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.

PROFILE OF THE CITY AND ITS OPERATIONS
The City of Fortuna is located on the North Coast of California seven (7) miles inland from the Pacific Ocean to the west and 253 miles north of San Francisco on U.S. Route 101. Fortuna is surrounded by national, state and county redwood parks and is the gateway to the redwood forests of Northern California. The City has a large number of events and festivals including Art & Wine in the Park, the Annual Fortuna Rodeo, Redwood AutoXpo, Apple Harvest, Hops in Humboldt Festival, and the Fortuna Concert Series. There are many holiday events for both young and old including concerts and parades.

The City of Fortuna was incorporated in 1906 and is home to approximately 12,000 individuals. The city’s boundaries encompass 4.8 square miles with a population that has been growing by an average rate of one-percent (1%) annually over the last decade.

Education, health care, and government services are the largest employment categories followed by retail trade and construction. Timber harvesting and production is no longer the driving economic factor on the North Coast. Agriculture, health care, education, and government jobs have filled the void left by the timber industry with a mix of retail sales and hospitality services increasingly supporting our local economy.

The city operates under a council-manager form of government. Policy making and legislative authority are vested in the City Council consisting of the Mayor and four other elected Council members. The Council is responsible, among other matters, for passing ordinances, adopting the city budget, appointing committees, and hiring the City Manager. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the daily operations of the city, and for appointing other employees. The Council is elected to four year staggered terms, with 2-3 members elected every two years. The Mayor is selected by and serves at the pleasure of the City Council for a two-year term. i
May 5, 2026

The city provides a full range of municipal services including police protection; construction and maintenance of city streets; storm drains, and similar infrastructure; park maintenance; community recreation activities; water and wastewater utilities; and a transit system.

The annual budget serves as the foundation for the City of Fortuna’s financial planning and control system.

The budget process is the vehicle through which the city establishes goals and objectives, and prioritizes the desired programs or services that the city provides and which can be financed by the city’s anticipated revenue for the budget period. The annual budget is categorized by fund, function (e.g., supplies, services), and department (e.g., police, public works). The budget is the means through which policy decisions are made, effected, controlled and monitored. The City Manager is responsible for submitting and recommending an operating budget and a capital improvements budget for City Council consideration and adoption. Throughout the year, the budget serves as a financial management tool and an operational plan for the delivery of city services and capital projects.

In addition to the budget planning process the city maintains budgetary controls. The city’s objective in maintaining budgetary control is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The City Manager is authorized to transfer budgeted amounts within funds as deemed necessary in order to meet the city’s needs subject to policy defined in the city’s administrative regulations. The City Council may amend the budget by resolution during the fiscal year.

The city maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Purchase orders, contracts, and other commitments for expenditure of money are secured in order to reserve that portion of the applicable appropriation. Total expenditures of each fund may not exceed fund appropriations and total expenditures for each department may not exceed departmental appropriations.

Unencumbered amounts lapse at year-end and may be appropriated as part of the following year’s budget.

Financial statements contained in the Annual Comprehensive Financial Report (“ACFR”) include budget to actual comparisons that are required supplementary information. Comparisons are presented for the general fund and other major governmental funds for which an appropriated annual budget has been adopted. Budget to actual comparisons are also presented for the city’s non-major funds in the supplemental information section of this report.

LOCAL ECONOMY
The city’s general fund sales tax revenue recognized a loss this fiscal period. City-wide retail sales subject to tax decreased to $232 million over the year; a decrease of approximately $5 million over the previous fiscal year.

The unemployment rate for 2025 increased to 3.5% - the highest unemployment rate seen in the last 10 years was in 2021 when the unemployment rate was 7.9%. Property values remain stable with a slight increase as compared to the previous fiscal period. Looking forward, the city’s 2025-26 budget reflects a continued conservative approach. The city anticipates ongoing economic recovery and will carefully monitor revenue to match and prioritize city services within available revenues. ii
May 5, 2026

MAJOR INITIATIVES
Capital Projects
The City of Fortuna is committed to investing in the city’s future by improving and repairing essential water and sewer infrastructure projects, disability access improvements and more. Prior to fiscal year 2025 the city leveraged state grants, former Redevelopment Agency bond loan proceeds, and storm drainage funds to complete the nearly $6.5 million of improvements to the Rohner Creek Flood Control and Riparian Habitat Improvement Project. The project was successfully completed in fiscal year 2018. Upon the completion of that project the City was able to move forward with the almost $2.5 million Hillside Creek Flood Control Project which was completed in 2020. This project was 75% funded by a FEMA grant. Upon completion of these projects, in fiscal year 2021, the City submitted an updated Flood Mapping to FEMA and was successful in removing hundreds of homes out of the flood plain.

Redevelopment Dissolution
Pursuant to ABx 1 26 (“AB 26”), the Redevelopment Agency of the City of Fortuna (“Agency”) was dissolved on February 1, 2012. The former Agency is now administered by the Successor Agency to the Former Redevelopment Agency of the City of Fortuna. The Successor Agency continues to wind down the affairs of the former Redevelopment Agency. The City of Fortuna Oversight Board was dissolved and replaced by a Countywide Oversight Board pursuant to Health and Safety Code Section 34179 (j). The new Countywide Oversight Board continues to meet regularly to review and approve the annual Recognized Obligation Payments Schedule (ROPs) request submitted to the California Department of Finance, as well as other business activity related to the Successor Agency.

ACKNOWLEGEMENTS
The preparation of this report could not be accomplished without the efficient and dedicated service of the entire staff of the finance department, the auditing services of O’Connor & Company, and the cooperation of the various city departments. I would also like to acknowledge and thank the City Council and the City Manager for their continued support and leadership in responsibly managing the City of Fortuna’s financial operations.

Respectfully submitted,
Aaron Felmlee, Finance Director
iii
iv

CITY OF FORTUNA, CALIFORNIA
List of Principal Officials
June 30, 2025
City Council
Mayor Mike Johnson
Mayor Pro Tem Tami Trent
Council Member Kyle Conley
Council Member Carlos Diaz
Council Member Abe Stevens
Appointed Officials
City Manager Amy Nilsen
Finance Director Aaron Felmlee
Police Chief Matt Eberhardt
Public Works Director Brian Issa
Parks and Recreation Director Kaylyn Stainbrook
Community Development Director Vacant
City Clerk Siana Emmons
City of Fortuna
Organizational Chart
Deputy City Engineer
1 FTE
Engineering
Technician II
1 FTE
Residents & Businesses of Fortuna
Mayor & City Council
City Manager City Attorney
Public Works Director
(Department Head)
1 FTE
Laboratory Director
1 FTE
Senior Admin Assistant /
Deputy City Clerk
1 FTE
City Clerk / Human
Resources Manager
(Department Head)
1 FTE
Payroll / Benefits
Administrator
1 FTE
Finance Office
Supervisor
1 FTE
Accounting
Technician
1 FTE
Finance Director
(Department Head)
1 FTE
Account Clerk II
1 FTE
Community Development
Director
(Department Head)
1 FTE
Planner II
1 FTE
Building Official
1 FTE
Building Inspector
1 FTE
Chief of Police
(Department Head)
1 FTE
Lieutenant
(Division Head)
1 FTE
Sergeant assigned to
Supervise Dispatch
1 FTE
Administrative
Assistant III
1 FTE
Kennel Attendant (PT)
.50 FTE
Parks Maintenance
Worker II
3 FTE
Parks & Rec Director
(Funded by Measure E)
(Department Head)
1 FTE
Museum Curator (PT)
.58 FTE
River Lodge Conference
Center Manager
1 FTE
Conference Center
Coordinator
1 FTE
Conference Center
Worker (PT)
.87 FTE
Parks Maintenance
Worker III
1 FTE
Bus Driver II
1 FTE
Lead Parks
Maintenance Worker
1 FTE
Transit Dispatcher /
Office Assistant (PT)
.51 FTE
Administrative
Assistant II
1 FTE
WWTP Operator III /
Shift Supervisor
2 FTE
WW Chief Plant Operator
(Division Head)
1 FTE
Utility Maintenance
Worker III
2 FTE
Utility Shift Supervisor
1 FTE
General Services Superintendent (Division Head)
1 FTE
WWTP Operator II
3 FTE
WWTP Operator I /
OIT
2 FTE
Lead Vehicle &
Equipment Mechanic
1 FTE
Vehicle & Equipment
Mechanic
1 FTE
Street Maintenance
Worker III
1 FTE
Street Maintenance
Worker II
4 FTE
Lead Street Maintenance
Worker
1 FTE
Police Officer (Sworn)
9 FTE
Police Officer (Sworn) -
Funded by Measure Z
2 FTE
Sergeant (Sworn)
3 FTE
Police Officer (Sworn) -
Funded by Measure E
2 FTE
Administrative
Assistant I (PT)
.73 FTE
Bus Driver I (PT)

1.00 FTE
Code Compliance
Officer (PT) (Funded
by Measure E)
.46 FTE
Police Dispatcher II
5 FTE
Police Dispatcher I
(PT)
.50 FTE
Rec Program Supervisor
(Funded by Measure E)
1 FTE
Recreation Program
Coordinator (PT)
.58 FTE
Recreation Leader
(PT)

4.23 FTE
CSO (Funded by
Measure E)
1 FTE
Community Services
Officer (PT)
.73 FTE
Senior Administrative
Assistant (PW)
1 FTE
Parks Maintenance
Worker I (PT)

1.94 FTE
Records Clerk (Funded
by Measure E)
1 FTE
Utility Maintenance
Worker II
3 FTE
Facility Custodian
1 FTE
Utilities Superintendent
(Division Head)
1 FTE
City Carpenter III
1 FTE
v

FINANCIAL SECTION
- 1 -
INDEPENDENT AUDITORS’ REPORT
To the Honorable Members
of the City Council
City of Fortuna
Fortuna, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information, of the City of Fortuna, California as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City of Fortuna’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of City of Fortuna, as of June 30, 2025, and the respective changes in financial position and where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.

Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Fortuna, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about City of Fortuna’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the Unites States of America will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

1701 NOVATO BLVD, SUITE 302
NOVATO, CA 94947
PH. (415) 457-1215
FAX. (415) 457-6735
www.maocpa.com

Board of Directors
City of Fortuna - Page 2
- 2 -
In performing an audit in accordance with auditing standards generally accepted in the Unites States of America, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Fortuna’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City of Fortuna’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, which follows this report letter, and the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.

We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise City of Fortuna’s basic financial statements. The accompanying supplementary information, as listed in the Table of Contents, is presented for the purpose of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

Board of Directors
City of Fortuna - Page 3
- 3 -
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

O’Connor & Company
Novato, California
May 5, 2026

MANAGEMENT'S DISCUSSION AND ANALYSIS
- 4 -

INTRODUCTION
This section of the City of Fortuna’s (the City’s) annual financial report presents discussion and analysis of the City's financial performance during the fiscal year that ended on June 30, 2025. Please read this analysis in conjunction with the transmittal letter contained in the front of this report and the City’s financial statements, which follow this section.

Financial Highlights
 The City's total net position continued to improve during the 2024-25 fiscal year with an increase of $2.84 million at the end of the fiscal period. Net position is the difference between the City’s assets and liabilities.
● The Successor Agency (Former Redevelopment Agency) continues to move forward with the completion of “winding down” the City’s former redevelopment activities.  The City’s general funds earned $10.89 million in revenues during the 2024-25 fiscal year with $10.51 million in total expenditures, which resulted in an excess of revenues over expenditures of $382 thousand.  The citizens of Fortuna approved a ¾ cent sales tax measure, Measure E, on the November 8, 2016 ballot. Revenues from Measure E accounted for $1.92 million of the $10.89 million total general fund revenues. Measure E is a general tax that went into effect on April 1, 2017 and is set to terminate on March 31st, 2033.
 The fiscal period ending June 30, 2025, resulted in a general fund balance of $12.90 million with $5.4 million reported as unassigned (See pg. 14-15 for details). The City has designated about $7.5 million from the end of year fund balance as stabilization reserves for contingencies and cash flow shortfalls.  The City’s water and wastewater programs generated approximately $7.84 million in user fees. Utility fees continue to support daily operations, debt service, and capital improvement projects. The net position of the water enterprise increased by 4.39 percent to $17.4 million and the wastewater enterprise net position increased by 5.55 percent to $28.6 million indicating stable growth and management of the City’s vital utility services.

OVERVIEW OF THE FINANCIAL STATEMENTS
The City’s Annual Comprehensive Financial Report (“ACFR”) consists of four main components: (1) the independent auditor’s report and management’s discussion and analysis; (2) the basic financial statements and notes to the financial statements; (3) required supplementary information; and (4) combining fund financial statements. The basic financial statements include two types of statements that present different views of the City; the government-wide and the fund financial statements.  The government-wide financial statements provide both long-term and short-term information regarding the City’s overall financial status.
 The fund financial statements focus on individual parts of city government, reporting the City’s operations in more detail than the government-wide statements.

The basic financial statements also include notes that provide additional information essential to understanding the data contained in the government-wide and fund financial statements. The statements and notes are followed by required supplementary information, including budgetary comparison schedules for the general fund and other major governmental funds. In addition to these required elements, we have included combining statements and schedules that provide details about the City’s non-major funds.

MANAGEMENT'S DISCUSSION AND ANALYSIS
- 5 -
Figure A-1 summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements.

Figure A-1
Major Features of the City of Fortuna’s Government-Wide and Fund Financial Statements Fund Statements
Government-Wide
Statements
Governmental Funds Proprietary Funds
Scope Entire City government The activities of the City that is not proprietary or fiduciary,
such as the Police Dept. and
Parks & Recreation.

Activities the City operates similar to
private businesses: Water, sewer, and
transit.

Required
financial statements
● Statement of net position ● Balance sheet ● Statement of net position ● Statement of activities ● Statement of revenues,
expenditures, and changes
in fund balances
● Statement of revenues, expenditures,
and changes in net position
● Statement of cash flows
Accounting basis and
measurement focus
Accrual accounting and
economic resources focus
Modified accrual accounting
and current financial resources
focus
Accrual accounting and economic
resources focus
Type of asset/liability
information
All assets and liabilities, both
financial and capital, and shortterm and long-term
Only assets expected to be
depleted and liabilities that are
due and payable during the
fiscal year. No capital assets
are included.

All assets and liabilities, both financial
and capital, including short-term and
long-term liabilities.

Type of
inflow/outflow information
All revenues earned or
received; and expenditures
incurred during fiscal period,
regardless of when cash is
received or expended.

Revenues for which cash is
received during or soon after
the end of the year.

Expenditures when goods or
services have been received
and payment is due during the
fiscal year.

All revenues and expenditures
received/incurred during the fiscal year,
regardless of when cash is received or
expended.

Government-Wide Statements
Government-wide statements report information similar to those used by private-sector companies. Current year revenues and expenditures are accounted for in the statement of activities on a full accrual basis regardless of when cash is actually received or disbursed.

The government-wide financial statements provide a broad overview of the City’s activities as a whole.

These financial statements are comprised of the:
1) Statement of Net Position - Includes all of the City’s assets and liabilities and is used to measure total economic resources. Net position is the difference between the City’s assets and liabilities.

Over time, increases or decreases in the net position is an indicator of whether the City’s financial health is improving or deteriorating.
2) The Statement of Activities - Provides information regarding the City’s total revenues and full accrual expenses and is critical in measuring the net revenues and expenses (including depreciation) of each of the City’s programs.

MANAGEMENT'S DISCUSSION AND ANALYSIS
- 6 -
The government-wide financial statements of the City are divided into two categories:
 Governmental activities – The majority of the City's basic services are reported as governmental activities, including general government, police, streets, public works, parks and recreation. Activities are primarily financed with property taxes, sales taxes, transient occupancy taxes, user charges and fees, and state and federal grants.
 Business-type activities – The City's water, wastewater, and transit systems are reported as businesstype activities. These programs are financed with user fees and transit subsidies that are intended to cover the long-term costs of services including capital infrastructure and debt financing.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control and monitor resources that have been segregated or “restricted” for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. The concept of major funds, and the determination of which are major funds is established by the Governmental Accounting Standards Board (GASB).  Governmental funds – Most of the City's basic services are included in governmental funds which focus on (1) How cash and other financial assets can readily be converted to cash flow; and (2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, additional information is included at the bottom of the governmental funds statement, or on subsequent pages, that explain the relationship (or differences) between them.  Proprietary funds – Services for which the City charges customers a fee are generally reported in proprietary funds. Proprietary funds, like the government-wide statements, provide both long and shortterm financial information. Similarly, the City's enterprise funds (one type of proprietary fund) are essentially equal to its business-type activities, but provide more detail and information such as cash flow.

MANAGEMENT'S DISCUSSION AND ANALYSIS
- 7 -

FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
Net Position. The City’s total combined net position increased $2.84 million during the 2024-25 fiscal year.

See Table A-1 below:

The net position of the City’s governmental activities increased by 1.00 percent to $55.3 million during the 2024-25 fiscal year. The City currently does not have any long-term debt related to assets used in its governmental activities. Net capital assets for governmental activities increased to $26.1 million at yearend.

The net position of the City’s business-type activities increased by approximately $2.3 million this fiscal year to $46.1 million. Assets generated from business-type activities are restricted to supporting the continuing operations of the City’s utility and transit services.

Combined Revenues and Expenditures
City revenues increased overall by seven percent (7%), ending the year with a combined total of $26.3 million. In comparing revenues to the previous fiscal year, it is important to consider that there was an increase in charges for service revenue in the water and wastewater funds of $1.5 million from the previous fiscal year. This increase in water and wastewater revenues nearly accounted for the entire increase in overall revenues. (See Table A-2.)

Percentage
Change
2025 2024 2025 2024 2025 2024
$ 36,399 $ 36,018 $ 23,850 $ 23,053 $ 60,249 $ 59,071 2.0% 26,157 26,005 36,326 35,261 62,483 61,266 2.0%
62,556 62,023 60,176 58,314 122,732 120,337 2.0%
Deferred outflows 3,138 3,758 1,422 1,703 4,560 5,461 -16.5% 893 1,083 1,566 1,041 2,459 2,124 15.8%
7,975 7,819 13,644 14,724 21,619 22,543 -4.1%
8,868 8,902 15,210 15,765 24,078 24,667 -2.4%
Deferred inflows 1,570 2,168 239 399 1,809 2,567 -29.5% Net position:
26,110 25,935 24,686 24,451 50,796 50,386 0.8%
Restricted 5,494 4,875 - - 5,494 4,875 12.7%
Unrestricted 23,652 23,901 21,463 19,402 45,115 43,303 4.2% Total net position $ 55,256 $ 54,711 $ 46,149 $ 43,853 $ 101,405 $ 98,564 2.9% Total liabilities
Invested in capital assets
Current and other assets
Capital assets, net
Total assets
Current liabilities
Long-term liabilities
Table A-1
City of Fortuna’s Net Position
(in thousands of dollars)
Governmental Activities Business-type Activities Total

MANAGEMENT'S DISCUSSION AND ANALYSIS
- 8 -
The total cost of City programs and services increased by $2.4 million to $23.5 million during fiscal year ending 2025, an increase of twelve percent (12%). Costs cover a variety of services with approximately 43% of total costs attributed to business-type activities (water, wastewater, and transit) and the remaining 57% related to general government, public safety, streets, parks and recreation programs, and other services provided to the community.

MANAGEMENT'S DISCUSSION AND ANALYSIS
- 9 -
Contributions increased by seven percent (7%) during the 2024-25 fiscal year. Most of this increase was due to an increase in charges for service revenue in the water and wastewater funds. Business-type activities saw a total of $12.4 million in revenues finance operating costs of $10.1 million, which provided cash flow for principal payments on water and wastewater revenue bonds and continued investment in capital improvement projects to maintain the City’s water and wastewater infrastructure.

The cost of the City’s governmental activities this year was $13.3 million, an increase of $1.6 million or

13.2%, compared to last fiscal year as presented in Table A-2. The cost of the City’s business type activities this year was $10.1 million, an increase of $0.9 million or 9.0%, compared to last fiscal year as presented in Table A-2. Water and Wastewater expenses accounted for all of the $1.0 million increase. These increased costs were primarily for capital outlay and infrastructure improvements.

Percent
Change
2025 2024 2025 2024 2025 2024
Revenues
Program revenues
Charges for services $ 2,193 $ 2,177 $ 7,837 $ 6,301 $ 10,030 $ 8,478 18% Operating Grants - - 3,511 2,695 3,511 2,695 30%
Capital Grants 3,122 3,827 - - 3,122 3,827 -18%
General revenues
Taxes 7,181 7,151 - - 7,181 7,151 0%
Investment Earnings 1,082 1,085 1,084 1,087 2,166 2,172 0% Other 312 357 - - 312 357 -13%
Total revenues 13,890 14,597 12,432 10,083 26,322 24,680 7% Expenses
General government 2,497 1,814 - - 2,497 1,814 38%
Public safety 5,845 5,192 - - 5,845 5,192 13%
Streets 3,030 2,656 - - 3,030 2,656 14%
Parks and recreation 1,715 1,682 - - 1,715 1,682 2%
Sanitation 21 32 - - 21 32 -34%
Business development & housing 227 406 - - 227 406 -44% Water - - 3,333 3,779 3,333 3,779 -12%
Wastew ater - - 6,391 5,035 6,391 5,035 27%
Transit - - 422 419 422 419 1%
Total expenses 13,335 11,782 10,146 9,233 23,481 21,015 12% Increase (Decrease) 555 2,815 2,286 850 2,841 3,665
Transfers (10) (7) 10 7 - -
Change in net position 545 2,808 2,296 857 2,841 3,665 -22% Net Position, beginning, as restated 54,711 51,903 43,853 42,996 98,564 94,899 Prior Period Adjustment - - - - - -
Net Position, end of year $55,256 $54,711 $46,149 $43,853 $101,405 $ 98,564 3% Table A-2
Changes in the City’s Net Position
(in thousands of dollars)
Governmental
Activities Business-type Totals City Wide

MANAGEMENT'S DISCUSSION AND ANALYSIS
- 10 -

FINANCIAL ANALYSIS OF THE FUND STATEMENTS
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements and regulations. The fund financial statements focus on individual parts of city government to report city operations in more detail than the government-wide statements.

Governmental Funds
 The general fund, HOME fund, and city housing fund are reported as major governmental funds.

Other non-major governmental fund programs include gas tax(s), storm drain maintenance, federal and state grants, debt service, and capital projects.
 The general fund reported $10.9 million in tax, intergovernmental, fee and other revenues during the year. These revenues supported $5.4 million in public safety programs, $1.7 million to support parks and recreation programs and services, and the remainder supported streets, capital improvement projects, and general administration. The general fund had a fund balance of $12.9 million at year-end.
 The City’s HOME grant fund continues to administer an approximate $10.5 million portfolio of federally funded housing loans. No new loans were extended during the year.  The City continues to administer a $3.5 million portfolio of low-to-moderate income housing loans that were originally funded by Community Development Block Grants (“CDBG”) and by set-aside requirements of the former redevelopment agency. Administration of these assets is a result of the City’s ongoing commitment to support low and moderate income housing programs within city limits.

Business-Type Funds
 The water fund earned $3.1 million in user fees during the year to support operating costs, debt service, and capital improvements.
 The wastewater fund earned $4.7 million in user fees during the year to support operating costs, debt service, maintenance costs and investments in system improvements.  The nonmajor transit fund earned over $25,000 in fees during the 2024-25 fiscal period. Operating subsidies of over $447,000 combined with user fees supports the operating costs necessary to provided essential transportation services to city residents.

MANAGEMENT'S DISCUSSION AND ANALYSIS
- 11 -

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City continues to invest in improvements to maintain and improve the City’s infrastructure. At the end of 2025, the City has invested $62.4 million in a broad range of capital assets (net of accumulated depreciation) that support the essential services provided to the City’s residents and businesses. Assets include land, equipment, vehicles, buildings, park facilities, and water and wastewater systems. (See Table A-3) Additional information about the City’s capital assets can be found in Note 4, Section D, of the notes to the basic financial statements.

Governmental Activity Debt
The City ended the 2024-25 fiscal year with $10.9 million in principal owed for the City’s revenue bonds.

The following is a breakdown of the outstanding principal by fund:

Water Fund $ 3,890,000
Wastewater Fund 6,305,000
Subscriptions 46,565
City Total: $ 10,241,565

For further detail, see Notes to the Basic Financial Statements, Long-Term Debt, contained in the ACFR.

Percent
Change
2025 2024 2025 2024 2025 2024
Land 1,134 $ 1,134 $ 154 $ 154 $ 1,288 $ 1,288 $ 0%
5,232 2,761 4,394 3,164 7,155 8,396 -15%
- - 35,729 34,846 35,729 34,846 3%
- - 21,926 21,718 21,926 21,718 1%
93 46 - - 46 93 -51%
4,535 8,359 - - 8,359 4,535 84%
Equipment 1,859 1,807 2,510 2,483 4,369 4,290 2%
Vehicles 1,761 1,695 2,216 2,053 3,977 3,748 6%
Infrastructure 27,826 27,438 - - 27,826 27,438 1%
Improvements 2,317 2,226 - - 2,317 2,226 4%
Total Capital Assets $ 44,160 46,063 $ 66,929 $ 64,418 $ 112,992 $ 108,578 $ 4% Less:

Accumulated depreciation (19,948) (18,197) (30,603) (29,157) (50,551) (47,354) 7% Capital Assets, net of
Accumulated depreciation $ 25,963 26,115 $ 36,326 $ 35,261 $ 62,441 $ 61,224 $ 2% Table A-3
(in thousands of dollars)
Capital Assets (net of depreciation)
Governmental Activities Business-type Activities
Water plant & system
Total
Buildings
Construction in progress
Wastew ater plant & system
Intangible RTU Softw are

MANAGEMENT'S DISCUSSION AND ANALYSIS
- 12 -

PENSION ACCOUNTING MATTERS
The City’s overall actuarially determined net pension liability was $10.22 million at the end of fiscal year 2025. Compared to $10.44 million at the end of fiscal year 2024. Additional information on the City’s pension liability and related matters can be found in Note 5E to the CAFR.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Fortuna has weathered the economic impacts and reverberations of COVID-19 and unanticipated natural disasters. However, caution is needed in the years ahead. The City’s Measure P, which would have authorized an additional 0.75% sales tax, was not approved by the voters of Fortuna. This will severely limit the ability of the City to maintain City services in future years as the impacts of inflation continue to take grip on the City’s expenses.

Future year expenditures are expected to continue to face cost pressures in maintaining existing and essential services to city residents. In particular, energy, pension, and health benefit costs have increased significantly over the past decade and are projected to increase again in 2025-26 and beyond. As the City monitors budget results during the current fiscal period; Council and staff are mindful to be financially prudent when prioritizing the services that are sustainable with existing revenue streams such as property and sales tax, grants, and fees for services.

CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Director, City of Fortuna, 621 Eleventh Street, P.O. Box 545, Fortuna, California 95540.

Governmental Business Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments $ 16,530,616 $ 22,760,673 $ 39,291,289 Net receivables 2,624,412 888,085 3,512,497
Prepayments 1,900 - 1,900
Inventory - 200,650 200,650
Total current assets 19,156,928 23,849,408 43,006,336
Noncurrent assets:

Notes receivable-long term 15,173,580 - 15,173,580
Loan receivable successor agency 1,222,961 - 1,222,961
Lease receivable 845,784 - 845,784
Capital assets not being depreciated 3,936,346 4,548,097 8,484,443 Capital assets being depreciated, net 22,220,654 31,778,351 53,999,005 Total noncurrent assets 43,399,325 36,326,448 79,725,773 Total assets 62,556,253 60,175,856 122,732,109

DEFERRED OUTFLOWS OF RESOURCES
Pension related items 3,138,343 1,422,431 4,560,774

LIABILITIES
Current liabilities:

Accounts payable 621,068 667,740 1,288,808
Accrued liabilities 191,386 - 191,386
Compensated absences - 5,657 5,657
Deposits 57,835 69,190 127,025
Accrued interest payable - 114,249 114,249
Subscription liabilities due in one year 23,254 - 23,254 Leases and bonds due in one year - 709,245 709,245
Total current liabilities 893,543 1,566,081 2,459,624
Noncurrent liabilities:

Compensated absences 404,100 35,190 439,290
Subscription liabilities 23,311 - 23,311
Net pension liability 7,547,309 2,678,175 10,225,484
Revenue bonds due in more than one year - 9,550,000 9,550,000 Premium from sale of bonds, net - 1,381,301 1,381,301
Total noncurrent liabilities 7,974,720 13,644,666 21,619,386 Total liabilities 8,868,263 15,210,747 24,079,010

DEFERRED INFLOWS OF RESOURCES
Leases 787,166 - 787,166
Pension related items 783,004 238,626 1,021,630
Total deferred inflows 1,570,170 238,626 1,808,796

NET POSITION
Net investment in capital assets 26,110,435 24,685,902 50,796,337 Restricted for:

Safety programs 263,720 - 263,720
Affordable housing 856,302 - 856,302
Streets and storm drains 2,561,275 - 2,561,275
Economic development 1,812,365 - 1,812,365
Unrestricted 23,652,066 21,463,012 45,115,078
Total net position $ 55,256,163 $ 46,148,914 $ 101,405,077

STATEMENT OF NET POSITION
June 30, 2025
City of Fortuna
Primary Government
The accompanying notes are an integral part of these financial statements. - 13 -
Net (Expenses) Revenue and
Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental activities:

General government $ 2,496,729 $ - $ - $ - $ (2,496,729) $ - $ (2,496,729) Public safety 5,845,446 28,660 - - (5,816,786) - (5,816,786) Public works & streets 3,029,588 1,063,777 - 3,121,503 1,155,692 - 1,155,692 Parks and recreation 1,714,735 1,100,493 - - (614,242) - (614,242) Sanitation and recycling 21,176 - - - (21,176) - (21,176) Business development and housing 226,966 - - - (226,966) - (226,966) Total governmental activities 13,334,640 2,192,930 - 3,121,503 (8,020,207) - (8,020,207) Business-type activities:

Water 3,332,856 3,134,922 577,512 - - 379,578 379,578
Wastewater 6,391,042 4,676,425 2,486,327 - - 771,710 771,710 Transit 421,530 25,490 447,635 - - 51,595 51,595
Total business-type activities 10,145,428 7,836,837 3,511,474 - - 1,202,883 1,202,883 Total City government $ 23,480,068 $ 10,029,767 $ 3,511,474 $ 3,121,503 (8,020,207) 1,202,883 (6,817,324) General revenues and transfers:

Taxes:

Property taxes 762,942 - 762,942
Sales taxes 4,059,277 - 4,059,277
Transient occupancy taxes 710,119 - 710,119
Other taxes 29,997 - 29,997
Property tax in lieu VLF 1,618,514 - 1,618,514
Other income 312,018 - 312,018
Unrestricted investment earnings 1,082,294 1,083,715 2,166,009 Transfers (9,643) 9,643 -
Total general revenues and transfers 8,565,518 1,093,358 9,658,876 Change in net position 545,311 2,296,241 2,841,552
Net position, beginning 54,710,852 43,852,673 98,563,525 Net position, ending $ 55,256,163 $ 46,148,914 $ 101,405,077 City Government
City of Fortuna

STATEMENT OF ACTIVITIES
For the year ended June 30, 2025
Program Revenues
The accompanying notes are an integral part of these financial statements. - 14 -
Other Total
General HOME City Housing Governmental Governmental
Fund Grants Fund Funds Funds
ASSETS
Cash and investments $ 11,369,479 $ 268,802 $ 545,783 $ 4,346,552 $ 16,530,616 Accounts receivable 1,272,884 - - 512,353 1,785,237
Taxes receivable 839,175 - - - 839,175
Prepaid items 1,900 - - - 1,900
Notes receivable 1,320 10,569,354 3,495,209 1,107,697 15,173,580 Due from other funds - - - 270,439 270,439
Loan receivable from successor agency 1,222,961 - - - 1,222,961 Lease receivable 845,784 - - - 845,784
Land held for resale - - 41,716 - 41,716
Total assets $ 15,553,503 $ 10,838,156 $ 4,082,708 $ 6,237,041 $ 36,711,408

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 393,070 $ - $ - $ 227,998 $ 621,068
Accrued liabilities 191,386 - - - 191,386
Due to other funds - - - 270,439 270,439
Deposits 57,835 - - - 57,835
Total liabilities 642,291 - - 498,437 1,140,728
Deferred inflows of resources:

Lease 787,166 - - - 787,166
Long-term receivables 1,222,961 10,569,353 3,495,209 1,107,697 16,395,220 Total deferred inflows of resources 2,010,127 10,569,353 3,495,209 1,107,697 17,182,386 Fund balances:

Non-spendable 1,900 - - - 1,900
Restricted for Safety programs - - - 263,720 263,720
Restricted for economic development - - - 1,812,365 1,812,365 Restricted for affordable housing - 268,803 587,499 - 856,302 Restricted for streets and storm drains - - - 2,561,275 2,561,275 Assigned for contingencies 7,500,000 - - - 7,500,000
Unassigned 5,399,185 - - (6,453) 5,392,732
Total fund balances 12,901,085 268,803 587,499 4,630,907 18,388,294 Total liabilities, deferred inflows of
resources and fund balances $ 15,553,503 $ 10,838,156 $ 4,082,708 $ 6,237,041 $ 36,711,408 Total Governmental Fund Balances $ 18,388,294
Amounts reported for governmental activities in the
statement of net position are different because:

Capital assets used in governmental activities are not
financial resources and therefore are not reported in the funds 26,115,284 Long-term notes receivable do not provide current financial resources and are therefore reported as deferred inflows of resources 16,395,220 The net pension liability and related deferred outflows of resources and deferred inflows of resources do not provide or use current financial resources and are not reported in the funds (5,191,970) Some liabilities, including bonds, leases, compensated
absences, and accrued interest are not due and payable in the current period and are therefore not reported in the funds (450,665)
Net Position of Governmental Activities $ 55,256,163
City of Fortuna

GOVERNMENTAL FUNDS

BALANCE SHEET
June 30, 2025
The accompanying notes are an integral part of these financial statements. - 15 -
City Other Total
General HOME Housing Governmental Governmental
Fund Grants Fund Funds Funds

REVENUES
Property taxes $ 762,942 $ - $ - $ - $ 762,942
Sales taxes 4,059,277 - - - 4,059,277
Other taxes 29,997 - - - 29,997
Transient occupancy taxes 710,119 - - - 710,119
Property tax in lieu VLF 1,618,514 - - - 1,618,514
Licenses and permits 1,063,777 - - - 1,063,777
Fines and forfeits 28,660 - - - 28,660
Intergovernmental 833,647 - - 2,287,856 3,121,503
Interest 839,380 13,553 27,295 202,066 1,082,294
Charges for services 846,260 - 94,901 159,332 1,100,493 Miscellaneous 101,631 - 65,624 144,763 312,018
Total revenues 10,894,204 13,553 187,820 2,794,017 13,889,594

EXPENDITURES
Current:

General government 2,493,145 3,410 - - 2,496,555
Public safety 5,402,499 - - - 5,402,499
Public works & streets 785,901 - - 2,396,007 3,181,908
Parks and recreation 1,714,735 - - - 1,714,735
Sanitation and recycling - - - 21,176 21,176
Business development and housing - - - 226,966 226,966
Capital outlay 93,131 - - - 93,131
Debt service:

Principal 23,196 - - - 23,196
Interest 174 - - - 174
Total expenditures 10,512,781 3,410 - 2,644,149 13,160,340 Excess (deficiency) of revenues
over expenditures 381,423 10,143 187,820 149,868 729,254

OTHER FINANCING SOURCES (USES)
Subscriptions 93,131 - - - 93,131
Transfers in 370,056 - - 135,479 505,535
Transfers out (515,178) - - - (515,178)
Total other financing sources (uses) (51,991) - - 135,479 83,488 Net change in fund balances 329,432 10,143 187,820 285,347 812,742 Fund balances, July 1 12,571,653 258,660 399,679 4,345,560 17,575,552 Fund balances, June 30 $12,901,085 $ 268,803 $ 587,499 $ 4,630,907 $18,388,294 City of Fortuna

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES
For the year ended June 30, 2025

AND CHANGES IN FUND BALANCES
The accompanying notes are an integral part of these financial statements. - 16 -
Net change in fund balances - total governmental funds $ 812,742 The changes in net position reported for governmental activities in the statement of activities is different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays ($1,983,540) exceeds depreciation ($1,831,220) in the current period. 152,320

LONG-TERM LIABILITIES PROCEEDS AND PAYMENTS
Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. 23,196
The recording of accrued compensated absences does not require the use of current financial resources and, therefore, is not reported as expenditures in governmental funds. The liability is included in the statement of activities. (13,663)
Long-term receivables are deferred in the funds until collected and available for use. In the statement of activities, no revenues are recognized from the collection of receivables. (171,105)
The net change in pension expense either contributed to pension plan in current fiscal year not included on statement of activities; or expenses reported in statement of activities that do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (258,179) Changes in net position of governmental activities $ 545,311 City of Fortuna

RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES

OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2025
The accompanying notes are an integral part of these financial statements. - 17 -
Nonmajor
Water Wastewater Transit Fund Total
ASSETS
Current assets:

Cash and investments $ 8,434,398 $ 14,300,591 $ 25,684 $ 22,760,673 Net receivables 258,398 472,064 157,623 888,085
Inventory 186,895 13,755 - 200,650
Total current assets 8,879,691 14,786,410 183,307 23,849,408 Noncurrent assets:

Capital assets:

Capital assets not being depreciated:

Land 26,996 126,695 - 153,691
Construction in progress 654,781 3,739,625 - 4,394,406
Total capital assets not being depreciated 681,777 3,866,320 - 4,548,097 Capital assets being depreciated:

Collection system - 10,228,178 - 10,228,178
Pumping system - 1,137,677 - 1,137,677
Treatment system - 24,363,330 - 24,363,330
Distribution and treatment system 21,926,207 - - 21,926,207 Equipment 875,710 1,634,165 - 2,509,875
Vehicles 1,044,511 860,659 310,870 2,216,040
Less accumulated depreciation (10,867,460) (19,503,812) (231,684) (30,602,956) Total capital assets being depreciated 12,978,968 18,720,197 79,186 31,778,351 Total noncurrent assets 13,660,745 22,586,517 79,186 36,326,448 Total assets 22,540,436 37,372,927 262,493 60,175,856

DEFERRED OUTFLOWS OF RESOURCES
Pension plan deferrals 582,297 784,965 55,169 1,422,431

LIABILITIES
Current liabilities:

Accounts payable 108,057 558,660 1,023 667,740
Compensated absences 1,547 4,110 - 5,657
Deposits 69,190 - - 69,190
Accrued interest payable 38,319 75,930 - 114,249
Premium from sale of bonds, net 17,758 46,487 - 64,245
Bonds and Notes due within one year 250,000 395,000 - 645,000 Total current liabilities 484,871 1,080,187 1,023 1,566,081 Noncurrent liabilities:

Compensated absences 9,625 25,565 - 35,190
Net pension liability 1,075,488 1,449,799 152,888 2,678,175 Revenue bonds and notes 3,640,000 5,910,000 - 9,550,000 Premium from sale of bonds, net 381,799 999,502 - 1,381,301 Total noncurrent liabilities 5,106,912 8,384,866 152,888 13,644,666 Total liabilities 5,591,783 9,465,053 153,911 15,210,747

DEFERRED INFLOWS OF RESOURCES
Pension plan deferrals 95,826 129,177 13,623 238,626
Total deferred inflows of resources 95,826 129,177 13,623 238,626

NET POSITION
Net investment in capital assets 9,371,188 15,235,528 79,186 24,685,902 Unrestricted 8,063,936 13,328,134 70,942 21,463,012
Total net position $ 17,435,124 $ 28,563,662 $ 150,128 $ 46,148,914 City of Fortuna

STATEMENT OF NET POSITION
June 30, 2025
Enterprise Funds
Proprietary Funds
The accompanying notes are an integral part of these financial statements. - 18 -
Nonmajor
Water Wastewater Transit Fund Total

OPERATING REVENUES
Sales of water $ 2,828,737 $ - $ - $ 2,828,737
Service fees 219,418 4,651,992 24,929 4,896,339
Miscellaneous 86,767 24,433 561 111,761
Total operating revenues 3,134,922 4,676,425 25,490 7,836,837

OPERATING EXPENSES
Employee services 1,146,827 1,371,739 171,356 2,689,922 Contract services 433,111 2,144,303 214,271 2,791,685
Purchased power 298,698 373,426 - 672,124
Supplies and materials 714,766 1,513,426 27,446 2,255,638 Depreciation and amortization 583,179 821,246 6,464 1,410,889 Total operating expenses 3,176,581 6,224,140 419,537 9,820,258 Operating income (loss) (41,659) (1,547,715) (394,047) (1,983,421)

NON-OPERATING REVENUES (EXPENSES)
Operating subsidiaries 577,512 2,486,327 447,635 3,511,474 Interest expense (156,275) (166,902) (1,993) (325,170)
Interest and investment revenue 353,267 730,448 - 1,083,715 Net non-operating revenues (expenses) 774,504 3,049,873 445,642 4,270,019 Income (loss) before contributions and
transfers 732,845 1,502,158 51,595 2,286,598
Contributions and transfers:

Transfer in - - 9,643 9,643
Net contributions and transfers - - 9,643 9,643
Change in net position 732,845 1,502,158 61,238 2,296,241 Total net position, July 1 16,702,279 27,061,504 88,890 43,852,673 Total net position, June 30 $ 17,435,124 $ 28,563,662 $ 150,128 $ 46,148,914 City of Fortuna

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION Proprietary Funds
June 30, 2025
Enterprise Funds
The accompanying notes are an integral part of these financial statements. - 19 -
Nonmajor
Water Wastewater Transit Fund Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 3,097,411 $ 4,590,596 $ 45,464 $ 7,733,471 Payments to suppliers (1,410,980) (3,571,680) (282,447) (5,265,107) Payments to employees for services (1,250,213) (1,502,026) (192,618) (2,944,857) Net cash provided (used) by operating activities 436,218 (483,110) (429,601) (476,493)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating subsidiaries 577,512 2,486,327 447,635 3,511,474 Transfers in - - 9,643 9,643
Net cash provided (used) by noncapital financing activities 577,512 2,486,327 457,278 3,521,117

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Capital asset dispositions 34,418 - - 34,418
Payments on long-term debt principal (257,758) (421,488) - (679,246) Interest paid on long-term debt (159,275) (171,589) (1,993) (332,857) Purchases of capital assets (326,048) (2,184,732) - (2,510,780) Net cash provided (used) by capital
and related financing activities (708,663) (2,777,809) (1,993) (3,488,465)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 353,267 730,448 - 1,083,715
Net cash provided (used) by investing activities 353,267 730,448 - 1,083,715 Net increase (decrease) in cash and cash equivalents 658,334 (44,144) 25,684 639,874 Cash and equivalents, July 1 7,776,064 14,344,735 - 22,120,799 Cash and equivalents, June 30 $ 8,434,398 $ 14,300,591 $ 25,684 $ 22,760,673 RECONCILIATION OF OPERATING INCOME TO Water Wastewater Nonmajor NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Fund Fund Transit Fund Total Operating income $ (41,659) $ (1,547,715) $ (394,047) $ (1,983,421) Adjustments to reconcile operating income
to net cash provided (used) by operating activities
Depreciation and amortization expense 583,179 821,246 6,464 1,410,889 (Increase) decrease in deferred outflows of resources 114,964 154,977 10,892 280,833 Accounts receivable (37,511) (85,829) 19,974 (103,366)
Inventories (54,826) 1,650 - (53,176)
Due from other funds 40,047 - - 40,047
Increase (decrease) in accounts payable 45,404 457,825 (683) 502,546 Due to other funds - - (40,047) (40,047)
Compensated absences (2,874) 5,207 (1,522) 811
Deferred inflows of resources (64,420) (86,841) (9,158) (160,419) Net pension liability (151,056) (203,630) (21,474) (376,160) Customer deposits 4,970 - - 4,970
Net cash provided (used) by operating activities $ 436,218 $ (483,110) $ (429,601) $ (476,493) Noncash Transactions
Bond premium amortization $ 17,758 $ 46,487 $ - $ 64,245 City of Fortuna

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
For The Year Ended June 30, 2025
Business-Type Activities-Enterprise Funds
The accompanying notes are an integral part of these financial statements. - 20 -
Private-Purpose
Trust Fund
Successor
Agency
to the RDA
Fund
Assets
Cash and investments $ 798,894
Total assets 798,894
Liabilities
Accrued expenses 495,712
Long-term debt:

Due within one year 633,266
Due more than one year 7,652,512
Total liabilities 8,781,490
Net position (deficit):

Held in trust for private purposes $ (7,982,596)
City of Fortuna

STATEMENT OF FIDUCIARY NET POSITION

AGENCY FUNDS
June 30, 2025
The accompanying notes are an integral part of these financial statements. - 21 -
Private-Purpose
Trust Fund
Successor
Agency
to the RDA
Fund
Additions
Property tax $ 817,150
Investment earnings 474
Total additions 817,624
Deductions
Current
Principal 295,000
Interest & other charges 189,015
Total deductions 484,015
Increase (decrease) in net position 333,609
Net position - beginning (8,316,205)
Net position - ending $ (7,982,596)
City of Fortuna

PRIVATE PURPOSE TRUST FUND

STATEMENT OF CHANGES IN NET POSITION
For the year ended June 30, 2025
The accompanying notes are an integral part of these financial statements. - 22 -
City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 23 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Fortuna (the City) is a municipal corporation governed by an elected five-member City Council. The accompanying financial statements present the government and its blended component units, entities for which the City is considered to be financially accountable.

Blended Component Units - The Fortuna Public Financing Authority is a separate legal entity created for the purpose of improving the economic conditions of the City, making public improvements and providing financing for these purposes. This entity is governed by the City Council of the City of Fortuna and is therefore reported as if it was part of the City. The Authority is reported as part of the City’s special revenue, capital projects and debt service funds. The component unit redevelopment agency was dissolved effective February 1, 2012, and all residual assets and liabilities are reported as private purpose fiduciary funds.

B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all the non-fiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Fund Financial Statements - The underlying accounting system of the City is organized and operated based on separate funds, each of which is a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and how spending activities are controlled.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied.

Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Proprietary Funds - the City’s Enterprise Funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when the related goods or services are delivered.

City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 24 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Measurement Focus, Basis of Accounting and Basis of Presentation (continued) In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are available when they are collectible within the current period or soon enough thereafter to pay liabilities for the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

Property taxes, sales taxes, transient occupancy taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are measurable and available only when cash is received by the government.

The City reports on the following major funds:

General Fund - the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

HOME Grant Fund - To account for grants and loans related to multi-family affordable housing projects.

City Housing Fund - To account for low- and moderate-income housing programs, and the residual assets from the dissolution of the housing fund of the City’s dissolved redevelopment agency.

The City reports on the following major proprietary funds:

Water and Wastewater Funds – To account for the sewage treatment plant, sewage pumping stations and collection systems, and the water distribution system.

As a rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the government’s water and wastewater function and various other functions of the government.

Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 25 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Measurement Focus, Basis of Accounting and Basis of Presentation (concluded) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s water and wastewater enterprise funds are charges to the customers for sales and services.

The enterprise funds also recognize as operating revenue the portion of tap fees, connection fees and impact fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Bond Premiums and Discounts/Issuance Costs for government-wide financial statements and proprietary funds financial statements - issuance costs are recognized during the current period. Any bond premiums and discounts are capitalized and amortized over the life of the bonds. Bond proceeds, premiums and discounts are reported as other financing sources in the governmental fund financial statements.

Fiduciary Funds
Trust Funds and Agency Funds are used to account for assets held by the City as an agent or trustee for individuals, private organizations, and other governments. The Successor Agency Private-purpose Trust Funds account for receipt of incremental property tax and payment of enforceable obligations (debts) assumed by the Successor Agency from the former Redevelopment Agency. The financial activities of these funds are excluded from the Government-wide financial statements but are presented in separate Fiduciary Fund financial statements.

D. Assets, Liabilities, Net Position or Equity
Deposits and Investments
The City’s cash and cash equivalents are cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, repurchase agreements, the State Treasurer’s Investment Pool, the Humboldt County Treasurer’s Pool and other permitted investments.

Investments for the City are reported at fair value. The State Treasurer’s Investment Pool and the Humboldt County Treasurer’s Pool operate in accordance with appropriate state laws and regulations.

The reported value in the pools is the same as the fair value of the pool shares.

Investments Authorized by the California Government Code and the City’s Investment Policy Authorized Investment Type
Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment
in One
Issuer
Local Agency Investment Fund (State Pool) N/A None $75 million U.S. Treasury Obligations N/A None None
U.S. Government Agency Issues N/A None None
Medium-term Corporate Notes 5 years 30% None
Insured Passbook on Demand Deposits with Banks
and Savings and Loans N/A None $250,000
Certificates of Deposit 2 years None $250,000
Foreign/Domestic 180 days 40% None
Mutual Funds (must be comprised of eligible
securities permitted under this policy) N/A None None
Money Market Funds (must be comprised of eligible
securities permitted under this policy) N/A None None
City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 26 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, Net Position or Equity (continued) Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and property tax receivables are not shown net of an allowance for uncollectibles.

Expenditures for long-term notes receivable are reported in the fund statements when made; and the related receivable is recorded as an asset in the fund statements but is offset by deferred inflows of resources accounts until the receivables are realized by the funds. Long-term receivables are recorded as assets in the statement of net position when the transaction is consummated by the City and are not offset by deferred inflows of resources accounts.

Property Taxes
Property taxes are levied as of March 1 on property values assessed as of the same date. State statutes provide that the property tax rate be limited generally to one percent of market value, be levied by only the County, and be shared by applicable jurisdictions. The County of Humboldt collects the taxes and distributes them to taxing jurisdictions based on assessed valuations subject to voter-approved debt.

Property taxes are due on November 1 and March 1, and become delinquent on December 10 and April

10. The City receives property taxes pursuant to an arrangement with the County known as the “Teeter Plan”. Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City.

Leases Receivable
The City is a lessor for leases of ground space. The City recognizes leases receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses its estimated incremental borrowing rate as the discount rate for leases.

The lease term includes the non-cancellable period of the lease. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 27 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, Net Position or Equity (continued) Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 for equipment and vehicles and $10,000 for other capital assets having an estimated useful life more than one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.

Donated capital assets are recorded at estimated fair market value at the date of donation. Under the GASB 34 Implementation Rules, the City was not required to record infrastructure assets existing or acquired prior to July 1, 2003; and the City has not recorded such assets. The City may elect to record such infrastructure assets in the future. The costs of normal maintenance and repairs that do not add to the value of an asset or materially extend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the City are depreciated using the straight-line method over the following estimated useful lives:

Buildings and improvements 25 years
Public domain infrastructure 20 years
System infrastructure 15-50 years
Vehicles and equipment 5 years
Compensated Absences
The City adopted a new accounting pronouncement, GASB Statement No. 101, Compensated Absences, for the year ended June 30, 2025. The implementation of this new accounting standard did not have a material impact on the City’s financial statements but resulted in an updated presentation of the financial statements and related disclosures in the notes to the financial statements.

City employees earn vacation, compensatory time, floating holidays, and management leave in accordance with City policies. These balances are recorded when earned and are fully payable upon termination of employment. Employees also earn sick leave benefits in accordance with City policies. A liability is recognized for the portion of accumulated sick leave that is more likely than not to be used or paid. Management evaluates sick leave for employees to determine the amount that is probable to be used or paid, considering historical usage, forfeitures, payments, and City policies related to compensated absences. Compensated absences are measured at the estimated amount payable, including salary-related payments such as the employer’s share of Social Security and Medicare taxes.

Compensated absences activity is presented on a net increase (decrease) basis as permitted by GASB Statement 101.

Long-term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position.

City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 28 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, Net Position or Equity (continued) Bond Premiums Discounts/Issuance Costs for Governmental-wide Financial Statements and Proprietary Funds Financial Statements
Issuance costs are recognized during the current period. Any bond premiums and discounts are capitalized and amortized over the life of the bonds. Bond proceeds, premiums and discounts are reported as other financing sources in the governmental fund financial statements.

Deferred Outflows and Inflows of Resources
Pursuant to GASB Statement 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement 65, Items Previously Reported as Assets and Liabilities, the City recognizes deferred outflows and inflows of resources.

In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources is defined as a consumption of net position by the government that is applicable to a future reporting period.

In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. A deferred inflow of resources is defined as an acquisition of net position by the City that is applicable to a future reporting period.

Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the State of California Public Employees Retirement System (PERS) and additions to or deductions from the PERS fiduciary net position have been determined on the same basis as they are reported by the PERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Use of Estimates
The financial statements have been prepared in conformity with U.S. generally accepted accounting principles, and as such, include amounts based on informed estimates and judgments of management with consideration given to materiality. Actual results could differ from those amounts.

Net Position
GASB Statement 34 added the concept of Net Position, which is measured on the full accrual basis, to the concept of Fund Balance, which is measured on the modified accrual basis. Net Position is the excess of all City assets over its liabilities, regardless of fund. Net Position is divided into three captions under GASB Statement 34. These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below:

Net Investment in Capital assets describes the portion of Net Position that is represented by the current book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of Net Position that is restricted as to use by the terms and conditions of agreements outside parties, governmental regulations, laws, or other restrictions that the City cannot unilaterally alter. These principally include developer fees received for use on capital projects, debt service requirements, and redevelopment funds restricted to low- and moderate-income purposes.

Unrestricted describes the portion of Net Position that is not restricted as to use.

City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 29 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (concluded) D. Assets, Liabilities, Net Position or Equity (concluded) Net Position Flow Assumption
The City’s policy is to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available.

Fund Balances - Governmental Funds
Fund balances for governmental funds are reported in classifications based primarily on the extent to which the City is bound to honor constraints about the specific purposes for which amounts in those funds can be spent. These classifications include (1) non-spendable, (2) restricted, (3) committed, (4) assigned and (5) unassigned amounts.

Nonspendable amounts are generally items not expected to be converted into cash within a short period of time such that the cash would not be available to pay reported liabilities of the current period. These non-spendable items typically include inventories, prepayments, long-term receivables not offset by deferred revenue accounts, and advances by the City to its component unit redevelopment agency.

Restricted amounts include those where the constraints placed on the uses or resources are externally imposed by grantors, contributors, other governments or by laws and regulations. Committed amounts are those that can only be used for a specific purpose as determined by the City Council. Such committed amounts may be redeployed for other uses only by the direction of the City Council. Assigned amounts are fund balance amounts constrained by the City’s intent to be used for specific purposes as determined by the City’s Finance Director or City Manager. Assigned amounts can be redeployed for other uses by direction of the City Manager or Finance Director. Unassigned fund balance amounts are the residual amounts of the General Fund only or funds having deficit fund balances.

Fund Balance Flow Assumption
When expenditure is incurred for which both restricted and unrestricted (committed, assigned or unassigned) amounts are available, the City considers restricted amounts to have been spent first.

When expenditures are incurred for which any class of unrestricted fund balance could be used, the City considers committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts.

Fund Balance and Net Position Deficits
The following funds had deficit fund balances at June 30, 2025. Deficits will be covered by future revenues and/or General Fund transfers.

Special Revenue Funds
Fund 240 Abatement
The Special Revenue funds are expected to have their deficit eliminated through various government grant reimbursements and transfers from the General Fund.

NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position
The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds and net position — governmental activities as reported in the government-wide statements of net position. One element of that reconciliation explains that “capital assets are not financial resources and are not reported in the funds.” The details of this $26,115,284 difference are as follows:

City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 30 -
NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (concluded) A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position (concluded)
Another element of the reconciliation explains that “long-term liabilities” are not due and payable in the current period and are therefore not reported in the funds. The details of this $(450,665) difference are as follows:

NOTE 3 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year-end. On or before the end of each fiscal year, all agencies of the City submit requests for appropriations to the City Manager so that a budget may be prepared. By May 15 of each year, the proposed budget is presented to the Council for review. The Council holds public hearings, and a final budget must be prepared and adopted no later than June 30.

The appropriated budget is prepared by fund, function, and department. The City’s department heads may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the City Manager. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. The Council made no supplemental budgetary appropriations during the fiscal year. Encumbrance accounting is not employed in governmental funds. The General Fund expenditures were under appropriations by $830,858.

Elimination of Interfund Activity
During operations, the City has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds.

While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental funds and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities’ column. Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business-type activities column.

Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities’ column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included as internal balances in the business-type activities column.

Capital assets $ 46,062,729
Accumulated depreciation (19,947,445)
Net adjustment to increase fund balance — total governmental funds to arrive at net position – governmental activities $ 26,115,284 Long-Term Debt Obligations:

Subscriptions $ (46,565)
Unpaid vacation and sick leave (404,100)
Net adjustment to decrease fund balance — total governmental. funds to arrive at net position – governmental activities $ (450,665) City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 31 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS
A. Cash Equivalents and Investments
Deposits and investments consisted of the following at June 30, 2025:

Statement of net position:

Cash and investments $ 39,291,289
Successor Agency (Fiduciary Funds) 798,894
Total cash and investments $ 40,090,183
Cash and investments consist of the following:

Maturity 12
Months or Less
13-24
Months
25-60
Months
Cash on hand $ 1,615 $ - $ -
Deposits with financial institutions 5,279,795 1,025,000 8,486,688 Humboldt County 633,216 - -
Investments in LAIF 24,663,869 - -
Total cash and investments $ 30,578,495 $ 1,025,000 $ 8,486,688 Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City has a formal policy which limits City purchased investments to securities having a remaining maturity date from time of purchase to five years or less.

Credit Risk - The City’s investment policy limits investments in mutual and money market funds to the top two ratings issued by nationally recognized statistical ratings organizations. Investments in obligations explicitly guaranteed by the U.S. Government are not considered to have credit risk and do not require the disclosure of credit quality. The Local Agency Investment Fund and Humboldt County Treasurer’s Investment Pool are unrated. The JP Morgan Money Market Fund was rated AAA.

Concentration of Credit Risk - Investments explicitly guaranteed by the U.S. Government and investments in mutual funds, and external investment pools such as those held by the City are excluded from concentration of credit risk disclosures.

Custodial Credit Risk - Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for deposits and investments is the risk that, in the event of the failure of the counterparty (e.g., brokerdealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.

The California Government Code requires California banks and savings and loan associations to secure an entity's deposits by pledging government securities with a value of 110% of an entity's deposits.

California law also allows financial institutions to secure entity deposits by pledging first trust deed mortgage notes having a value of 150% of an entity’s total deposits. The entity's Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized agent of depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an agent of depository. These securities are physically held in an undivided pool for all California public agency depositors.

Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an agent of depositor has the effect of perfecting the security interest in the name of the local government agency. Accordingly, all collateral held by California agents of depository is held for, and in the name of, the local government.

City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 32 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
A. Cash Equivalents and Investments (concluded)
Fair Value Measurements - GASB Statement No. 72, Fair Value Measurements and Application, establishes a fair value hierarchy consisting of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs consist of inputs other than quoted prices that are observable for an asset or liability, either directly or indirectly, that can include quoted prices for similar assets or liabilities in active or inactive markets, or market-corroborated inputs, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability. The valuation method used for rental properties is the Leased Fee Market method, which is dependent on the income generated from the rental properties. The City did not have any investments subject to the recurring fair value measurements as of June 30, 2025.

B. Receivables
Receivables as of year-end for the government’s individual major and nonmajor funds in the aggregate, net of the applicable allowances for uncollectible accounts General
Fund
HOME &
City Housing
Funds
Nonmajor
Funds
Total
Governmental
Water
Enterprise
Wastewater
and Transit
Enterprise
Receivables:

Taxes $ 839,175 $ - $ - $ 839,175 $ - $ -
Accounts 1,272,884 - 512,353 1,785,237 258,398 629,687
Subtotal current 2,112,059 - 512,353 2,624,412 258,398 629,687 Loan receivable 1,222,961 - - 1,222,961 - -
Lease receivable 845,784 - - 845,784
Notes receivable 1,320 14,064,563 1,107,697 15,173,580 - - Net total receivables $ 4,182,124 $ 14,064,563 $ 1,620,050 $ 19,866,737 $ 258,398 $ 629,687 Revenues of the water and wastewater enterprises are reported as net of uncollectible amounts. Total uncollectible amounts related to revenues of the current period are not material at year-end.

Long-term notes receivable of $15,173,580 consists of two notes relating to affordable housing projects for $10,569,604 (with accumulated and unpaid interest) and various other notes for $4,602,906 relating to business development and redevelopment projects. The notes for $10,569,604 bear interest at 3 percent per annum, mature in 55 years, and are repayable annually to the extent that the housing projects have residual receipts with the unpaid balance due at maturity. The notes are secured by a deed of trust on the housing projects. The other notes are generally repayable in monthly installments of principal and interest at various rates and terms.

The loan receivable of $1,222,961 in the General Fund is the amount determined to be an enforceable obligation of the successor agency to the former redevelopment agency of the City. When the redevelopment agency was dissolved in fiscal year 2012, previously approved loans between the City and the former redevelopment agency were deemed to not be an enforceable obligation of the successor agency under the dissolution rules and were written off at that time. The Dissolution Act further provided that after a successor agency receives a Finding of Completion by the California Department of Finance, such previously disallowed loans may be deemed to be enforceable obligations of the successor agency and repayable to the City. The successor agency has received its Finding of Completion, and the Oversight Board has approved the loan agreement and its validity as an enforceable obligation.

The loan is repayable in semiannual installments to the extent that funds are available under the formulabased method specified in the dissolution rules which also contain a provision that 20 percent of any such repayment shall be placed by the City in its Low- and Moderate-Income Housing Fund.

City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 33 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
C. Leases Receivable
The City leases ground space to Verizon Wireless. The Lease began in July 1996 and has a term of 40 years and expires on June 30, 2036. Under the lease, Verizon pays the City $4,529 per month. Rent is increased every 12 months on July 1st by the change in the consumer price index.

The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 3%. The rate was determined using the estimated incremental borrowing rate.

In fiscal year 2025, the City recognized $62,351 of lease revenue and $832 of interest revenue under the leases. The expected future minimum lease payments to be received are as follows:

Fiscal Year End Principal Interest Total
6/30/26 $ 62,709 $ 867 $ 63,576
6/30/27 65,222 898 66,120
6/30/28 67,838 934 68,772
6/30/29 70,548 972 71,520
6/30/30 73,364 1,012 74,376
6/30/31 76,300 1,052 77,352
6/30/32 79,353 1,095 80,448
6/30/33 82,525 1,139 83,664
6/30/34 85,829 1,183 87,012
6/30/35 89,260 1,232 90,492
6/30/36 92,836 1,280 94,116
Total $ 845,784 $ 11,664 $ 857,448
Balance
7/1/24 Increases Decreases
Balance
6/30/25
Lease Deferred Inflows Amortization $ 858,734 $ - $ 71,568 $ 787,166 City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 34 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
D. Capital Assets
Capital asset activity for the year ended June 30, 2025 was as follows:

Balance
7/1/24 Increases Decreases
Balance
6/30/25
Governmental-type Activities
Capital assets not being depreciated:

Land $ 1,133,620 $ - $ - $ 1,133,620
Construction in progress 5,232,518 1,263,628 3,735,137 2,761,010 Total capital assets not being depreciated: 6,366,138 1,263,628 3,735,137 3,894,630 Capital assets being depreciated:

Buildings 4,535,329 3,882,546 58,928 8,358,947
Intangible RTU Software Arrangements 93,131 - 46,740 46,391 Improvements 2,225,769 91,243 - 2,317,012
Equipment 1,806,799 51,863 - 1,858,661
Vehicles 1,695,015 143,482 77,556 1,760,941
Infrastructure–primarily street systems 27,438,309 387,838 - 27,826,147 Total capital assets being depreciated: 37,794,351 4,556,972 183,224 42,168,099 Less accumulated depreciation for:

Buildings (3,689,186) (219,720) (50,278) (3,858,628)
Intangible RTU Software Arrangements (23,280) (23,285) - (46,565) Improvements (1,455,078) (76,776) - (1,531,854)
Equipment (1,581,800) (78,884) - (1,660,684)
Vehicles (1,415,476) (120,015) (31,023) (1,504,468)
Infrastructure (10,032,706) (1,312,540) - (11,345,246)
Total accumulated depreciation (18,197,526) (1,831,220) (81,301) (19,947,445) Net capital assets being depreciated 19,596,826 2,725,752 101,923 22,220,654 Total net capital assets –
Governmental-type activities $ 25,962,964 $ 3,989,380 $ 3,837,060 $ 26,115,284 Balance
7/1/24 Additions Deletions
Balance
6/30/25
Business-type Activities
Capital assets not being depreciated:

Land $ 153,691 $ - $ - $ 153,691
Construction in progress 3,164,107 1,435,444 205,145 4,394,406 Total capital assets not being depreciated: 3,317,798 1,435,444 205,145 4,548,097 Capital assets being depreciated:

Wastewater collection system 9,345,051 883,128 - 10,228,179 Wastewater pumping 1,137,677 - - 1,137,677
Wastewater treatment plant 24,363,330 - - 24,363,330
Water treatment and distribution 21,718,241 207,967 - 21,926,208 Equipment 2,483,359 26,516 - 2,509,875
Vehicles 2,053,169 162,872 - 2,216,041
Total capital assets, being depreciated: 61,100,827 1,280,483 - 62,381,310 Less accumulated depreciation for:

Wastewater system (18,682,567) (821,245) - 19,503,812)
Water system (10,249,864) (617,597) - (10,867,461)
Transit system (225,220) (6,464) - (231,684)
Total accumulated depreciation (29,157,651) (1,445,306) - (30,602,957) Net capital assets being depreciated 31,943,176 (164,823) - 31,778,353 Total net capital assets –
Business-type activities $ 35,260,974 $ 1,270,621 $ 205,145 $ 36,326,450 City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 35 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)

D. Capital Assets (concluded)
Depreciation was charged to functions/programs of the City as follows:

E. Inter-fund Transfers and Intergovernmental Expenditures The transfers out of the general fund were made for the purpose of providing debt service funds for repayment of long-term obligations.

The composition of inter-fund balances was as follows:

Transfer In Transfer Out
General Fund $ 370,056 $ 515,178
Transit 9,643 -
Abatement 5,000 -
Gas Tax 130,479 -
Total $ 515,178 $ 515,178
The above balances generally resulted from a time lag between the dates that inter-fund goods and services are provided, or reimbursable expenditures occur, transactions are recorded in the accounting system, and payment between funds are made.

The composition of Due To/Due From was:

Receivable Payable
Drainage facility $ 270,439 $ -
Gas tax 2105 - 24,469
STIP/TEA - 182,715
Abatement Fund - 6,453
Special grants - 56,802
Total $ 270,439 $ 270,439
These interfund transactions were done to offset negative cash balances.

F. Long-Term Debt
Water Revenue Bonds - During the 2007 fiscal year, the City’s Public Financing Authority issued $8,085,000 in water revenue bonds, series 2006 for the purpose of providing long-term financing for the water treatment plant project of the City. The Fortuna Public Financing Authority entered into an installment sale agreement with the City whereby the City agreed to pay debt service on the bonds in exchange for financing.

Government Activities:

Streets $ 1,831,220
Total depreciation expense – governmental activities $ 1,831,220 Business-type Activities:

Water $ 617,597
Wastewater 821,245
Transit 6,464
Total depreciation expense – business-type activities $ 1,445,306 City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 36 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
F. Long-Term Debt (continued)
The installment sale agreement between the City and its Public Financing Authority has been eliminated from these financial statements. The revenue bonds bear interest at rates from 3.375% to 5.0% and are payable each April 1 and October 1 through 2037. The bonds are secured by a pledge of the water system net revenues. These bonds were refunded by the Water Revenue Refunding Bonds, Series 2017.

Wastewater Revenue Bonds - During the 2007 fiscal year, the City’s Public Financing Authority issued $13,820,000 in wastewater revenue bonds, series 2006 for the purpose of providing long-term financing for the wastewater treatment plant project of the City. The Fortuna Public Financing Authority entered into an installment sale agreement with the City whereby the City agreed to pay the debt service on the bonds in exchange for the financing. These bonds were refunded by the Wastewater Revenue Refunding Bonds, Series 2017.

Wastewater Revenue Refunding Bonds, Series 2017 - In November 2017, the City issued $8,740,000 in Wastewater Revenue Refunding Bonds, Series 2017 with interest rates ranging from 2.0% to 5.0%.

The proceeds were used to refund the $11,010,000 of outstanding 2007 Wastewater revenue bonds which had interest rates ranging from 3.25% to 5.0%.

The net proceeds of $10,999,950 from the Wastewater Revenue Refunding Bonds, Series 2017 (including a $1,394,652 premium and after payment of $263,273 in underwriting fees and other issuance costs) were used to redeem the refunded bonds soon thereafter. The City refunded the 2007 Wastewater revenue bonds to obtain an economic gain (difference between the present value of debt service payments on the old and new debt) of $1,664,447.

Future debt service in the Wastewater Revenue Refunding Bonds, Series 2017 is as follows:

Water Revenue Refunding Bonds, Series 2017 - In November 2017, the City issued $5,405,000 in Water Revenue Refunding Bonds, Series 2017 with interest rates ranging from 2.0% to 5.0%. The proceeds were used to refund the $6,750,000 of outstanding 2007 Water revenue bonds which had interest rates ranging from 3.375% to 5.0%. The net proceeds of $6,798,087 from the Wastewater Revenue Refunding Bonds, Series 2017 (including a $532,742 premium and after payment of $218,020 in underwriting fees and other issuance costs) were used to redeem the refunded bonds soon thereafter. The City refunded the 2007 Water revenue bonds to obtain an economic gain (difference between the present value of debt service payments on the old and new debt) of $1,045,437.

Period Ending Principal Interest Total Service
10/1/2025 $ 395,000 $ 303,719 $ 698,719
10/1/2026 415,000 283,969 698,969
10/1/2027 440,000 263,219 703,219
10/1/2028 460,000 241,219 701,219
10/1/2029 485,000 218,219 703,219
10/1/2030 510,000 193,969 703,969
10/1/2031 535,000 168,469 703,469
10/1/2032 560,000 141,719 701,719
10/1/2033 585,000 113,719 698,719
10/1/2034 615,000 84,469 699,469
10/1/2035 635,000 65,250 700,250
10/1/2036 670,000 33,500 703,500
Total $ 6,305,000 $ 2,111,438 $ 8,416,438
City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 37 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (concluded)
F. Long-Term Debt (concluded)
Future debt service in the Water Revenue Refunding Bonds, Series 2017 is as follows:

Period Ending Principal Interest Total
10/1/2025 $ 250,000 $ 153,275 $ 403,275
10/1/2026 265,000 140,775 405,775
10/1/2027 275,000 127,525 402,525
10/1/2028 290,000 113,775 403,775
10/1/2029 305,000 99,275 404,275
10/1/2030 320,000 87,075 407,075
10/1/2031 335,000 74,275 409,275
10/1/2032 345,000 60,875 405,875
10/1/2033 360,000 47,075 407,075
10/1/2034 370,000 36,275 406,275
10/1/2035 380,000 24,713 404,713
10/1/2036 395,000 12,838 407,838
Total $ 3,890,000 $ 977,750 $ 4,867,750
On July 1, 2022, the City entered into a 48 month subscription for the use of OpenGov Reporting and Transparency Software. An initial subscription liability was recorded in the amount of $93,131. As of June 30, 2025, the value of the subscription liability is $69,761. The City is required to make annual fixed payments of $23,370. The subscription has an interest rate of 3%. The value of the right-to-use asset as of June 30, 2025 of $93,131 with accumulated amortization of $23,280 is included with Software on the Subscription Class activities table found below.

Period Ending Principal Interest Total
6/30/2026 $ 23,254 $ 116 $ 23,370
6/30/2027 23,311 59 23,370
Total $ 46,565 $ 175 $ 46,740
Changes in Long-term liabilities - Long-term debt activity for the 2025 fiscal year was as follows:

Governmental Type
Beginning
Balance Additions Reduction
Ending
Balance
Due Within
One year
Subscriptions $ 69,761 $ - $ 23,196 $ 45,565 $ 23,254
Compensated absences 390,437 13,663 - 404,100 -
Total $ 460,198 $ 13,663 $ 23,196 $ 450,665 $ 23,254
Business Type Beginning
Balance Additions Deductions
Ending
Balance
Due Within
One year
2017 Water Bonds $ 4,130,000 $ - $ 240,000 $ 3,890,000 $ 250,000 2017 Wastewater Bonds 6,680,000 - 375,000 6,305,000 395,000 Bond premiums 1,509,798 - 64,252 1,445,546 64,245
Compensated absences 40,036 811 - 40,847 5,657
Total $12,359,834 $ 811 $ 679,252 $11,681,393 $ 714,902 City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 38 -
NOTE 5 - OTHER INFORMATION
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City carries insurance. The City is a member of the Redwood Empire Municipal Insurance Fund, a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, property, and workers compensation claims. Under the program, the City has a $10,000 general liability retention limit similar to a deductible with the Fund being responsible for losses above that amount up to $500,000.

The Fund carries excess liability coverage to a total of $40 million in excess of its $500,000 retention limit per occurrence through the California Joint Powers Risk Management Authority and its excess insurers.

The Fund covers workers’ compensation claims up to its self-insurance limit of $1 million. A purchased excess policy insures the Fund for an additional $1 million to provide aggregate coverage of up to $2 million per claim. The City pays an annual premium to the Fund; the City may share in any surplus revenues or may be required to pay additional assessments based upon the Fund’s operating results.

The Fund also provides property coverage up to $300 million per occurrence. Financial statements of the JPA Fund may be obtained from their administrative offices located at 414 W. Napa Street, Sonoma, California 95476.

The liability of the City is reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards.

Accordingly, claims are evaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claim’s liability estimate. Settlements have not exceeded coverage for each of the past three fiscal years.

B. Contingencies and Commitments
Litigation - The City is involved in litigation incurred in the normal course of conducting City business.

City management believes that, based upon consultation with its counsel, these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City.

C. Jointly Governed Organizations
Jointly governed organizations are legal entities or other organizations that result from a contractual arrangement and that are owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control in which the participants retain an ongoing financial interest or ongoing financial responsibility. The City is a participant in the following organizations:

Redwood Empire Municipal Insurance Fund - The City is a member of the Insurance Fund. The Fund, under the terms of a Joint Powers Agreement with the City and several other cities and governmental agencies, provides insurance coverage for general liability, automobile liability, and workers compensation claims. Under the arrangement, the Fund purchases liability, automobile liability, and workers compensation insurance and charges participating cities and governmental agencies in amounts planned to match expenses of insurance premiums, estimated payments resulting from selfinsurance programs, and operating expenses. The City’s obligations are limited to contributions to pay for related insurance premiums.

City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 39 -
NOTE 5 - OTHER INFORMATION (continued)
D. Other Post-Employment Benefits
The City provides no post-employment benefits other than those associated with the Public Employees Retirement System.

E. Public Employee Pension Plans
Plan Description - The plans are a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees Retirement System (CalPERS). CalPERS is governed by a 13-member Board of Administration with six elected members, three appointed members and four ex officio members, who include the State Treasurer, the State Controller, the Director of the California Department of Human Services, and a designee of the State Personnel Board.

Benefits Provided - The CalPERS provides retirement, disability, and death benefits. Retirement benefits are defined as 2.5 percent of the employees final 12 months average compensation times the employee’s years of service (2.0 percent for safety employees) Employees with 10 years of continuous service are eligible to retire at age 55 (age 50 for safety employees). Employees are eligible for servicerelated disability benefits regardless of the length of service. Five years of service is required for nonservice-related disability eligibility. Disability benefits are determined in the same manner as retirement benefits but are payable immediately without an actuarial reduction. Pre-retirement death benefits equal an employee’s final full-year salary. Both plans provide for a 2 percent Cost of Living Adjustment (COLA). The public safety plan is closed to new entrants.

Contributions - Section 20814 of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employees be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - At June 30, 2025, the City reported a liability of $10,225,484 for its proportionate share of the net pension liability for all plans. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023.

The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating governments, actuarially determined. At June 30, 2025, the City’s proportion was 0.08432 percent compared to 0.08366 at June 30, 2024. For the June 30, 2025 fiscal year, the City recognized pension expense of $2,040,953. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

All Plans
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to the measurement date $ 2,038,512 $ - Differences between actual and expected experience 860,061 30,929 Changes in assumptions 257,545 -
Net differences between projected and actual earnings on plan investments 542,931 - Change in employer’s proportion 84,618 844,601
Change in proportions and differences between actual
contributions and proportionate share of contributions 777,107 146,100 Total $ 4,560,774 $ 1,021,630
City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 40 -
NOTE 5 - OTHER INFORMATION (continued)
E. Public Employee Pension Plans (continued)
The $2,038,512 reported as deferred outflows of resources is related to pensions from City contributions made after the measurement date and will be recognized as a reduction of the net pension liability in the fiscal year ended June 20, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ending June 30,
Deferred Outflows
(Inflows) of
Resources
2026 $ 469,777
2027 1,232,503
2028 (15,718)
2029 (185,930)
Thereafter -
Total $ 1,500,632
Actuarial Assumptions - For the measurement period ended June 30, 2024, the total pension liability was determined by rolling forward the June 30, 2023 total pension liability. The June 30, 2024 total pension liability was based on the following actuarial methods and assumptions:

The mortality table used was developed based on CalPERS’ specific data. Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2024 experience study report that can be found on the CalPERS website.

Changes of Assumptions – There were no changes of assumptions for measurement date June 30, 2024.

Discount Rate – The discount rate used to measure the total pension liability was 6.90% for each Plan.

To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90 percent discount rate is adequate, and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 6.90 percent will be applied to all plans in the Public Employees’ Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 section.

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.9%
Inflation 2.3%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table Derived using CalPERS membership data for all funds Post Retirement Benefit Increase Contract COLA up to 2.3% until Purchasing Power Protection Allowance Floor on Purchasing Power applies
City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 41 -
NOTE 5 - OTHER INFORMATION (continued)
E. Public Employee Pension Plans (continued)
In determining the long-term expected rate of return, CalPERS considered both short-term and longterm market return expectations as well as the expected pension fund (PERF) cash flows. Using historical returns of all the Public Employees Retirement Funds’ asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a buildingblock approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PERF fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits of cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:

The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).

Asset Class Assumed Asset Allocation Real Return Years 1-10 1,2 Global equity – cap-weighted 30.00% 4.54%
Global equity – non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%

1. An expected inflation of 2.30% used for this period.

2. Figures are based on the 2021-22 Asset Liability Management study.

All Plans
1% Decrease 5.90%
Net Pension Liability $16,940,497
Current Discount Rate 6.90%
Net Pension Liability $10,225,484
1% Increase 7.90%
Net Pension Liability $4,713,187
City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 42 -
NOTE 5 - OTHER INFORMATION (concluded)
E. Public Employee Pension Plans (concluded)
The EARSL for PERF C for the measurement period ending June 30, 2024, is 3.8 years, which was obtained by dividing the total service years of 630,177 (the sum of remaining service lifetimes of the active employees) by 166,163 (the total number of participants: active, inactive, and retired) in PERF C.

Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Pension Plan Fiduciary Net Position - Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

F. Restricted Net Position and Non-spendable Fund Balances Restricted Net Position
The $5,493,662 restricted amount for debt service, safety programs, affordable housing, streets and other in the governmental activities statement of net position represents amounts to be used only for specific purposes and for which restrictions are imposed by laws, formal agreements or other governments and primarily relate to housing funds restricted by law to only certain specified uses.

Non-spendable Fund Balances
The non-spendable fund balances in the governmental fund types represent amounts not available for immediate use to pay current liabilities and consist of:

Non-spendable Amounts General Fund Nonmajor Funds
Prepaid items $ 1,900 $ -
G. Successor Agency Trust for Assets of Former Redevelopment Agency The Dissolution Process - On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 (the Bill) that provides for the dissolution of all redevelopment agencies in the State of California.

This action impacted the financial reporting entity of the City of Fortuna that previously had reported a redevelopment agency within the financial reporting entity of the City as a blended component unit. The bill provides that upon dissolution of a redevelopment agency, either the city or another governmental unit of local government will agree to serve as the successor agency to hold assets until they are distributed to other units of State and local government.

The City Council of the City of Fortuna elected to have the City become the Successor Agency for the former redevelopment agency and to become the housing successor for the agency.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established Oversight Board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenues in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between the redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the Successor by the Bill.

City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 43 -
NOTE 5 - OTHER INFORMATION (continued)
G. Successor Agency Trust for Assets of Former Redevelopment Agency (continued) Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City (including the amounts disallowed by the State Department of Finance) and others are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on these issues is not a position of settled law and there is considerable legal uncertainty regarding these issues. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial or other authorized body that would resolve any of the dissolution matters unfavorable to the City. In accordance with the timeline set forth in the Bill (As modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

Enforceable Obligations
2007 Revenue Bonds - Successor Agency Obligations
The City and its former component unit redevelopment agency entered into a loan agreement with the Fortuna Public Financing Authority (also a component unit of the City), dated October 1, 2007, wherein the Authority sold $17,500,000 in its revenue bonds, series 2007. From the sale of the Authority’s Revenue bonds, $13,280,000 was loaned to the component unit redevelopment agency and $4,220,000 was loaned to the City.

The loans receivable and payable between the City and the City’s former redevelopment agency and the City’s component unit Financing Authority have been eliminated from the accompanying financial statements.

From the bond proceeds, the former redevelopment agency deposited $2,525,000 into an Escrowed Project Fund Account until October 15, 2010, of the escrow bonds which bonds are defined as the bonds maturing November 1, 2038 with an interest rate of 4.9 percent. On October 15, 2010 the Trustee shall transfer all amounts then on deposit in the Escrowed Project Fund to the Principal Fund, to be applied to the mandatory redemption on November 1, 2010 of Escrow Bonds pursuant to Section 4.07 of the Trust Agreement. Notwithstanding the foregoing, the former Agency may postpone such redemption to any later date identified in a certificate of the former Agency which sets forth the new date for the transfer of amounts in the Escrowed Project Fund to the Principal Fund to be used to redeem Escrow Bonds pursuant to Section 4.07 of the Trust Agreement and which is accompanied by cash in an amount which is certified by the former Agency as sufficient, together with the earnings thereon, to pay interest on the portion of the Escrow Bonds which represent the funds then on deposit in the Escrowed Project Fund from November 1, 2010 to the redemption date as identified in such certificate of the Agency. The former Agency exercised its option to postpone this redemption until November 1, 2011. The redemption of the $2,525,000 was completed in fiscal 2014 by the Successor Agency.

The 2007 revenue bonds mature each November 1, commencing November 1, 2008 through 2038, bear interest at rates from 3.75 to 5.0 percent and consist of $5,365,000 in serial bonds, $4,110,000 in term bonds due November 2031, $2,525,000 in term bonds due November 1, 2038 (the escrow bonds), and $5,500,000 in term bonds due November 1, 2038. The bonds are subject to early redemptions from certain prepayments, bonds maturing on or after November 1, 2018 are subject to optional early redemption, the escrow bonds are subject to mandatory early redemption on November 1, 2010 and the term bonds maturing November 1, 2031 and 2038 are subject to mandatory sinking fund redemptions on or after November 1, 2024 and 2032, respectively.

The former redevelopment agency had pledged future incremental property tax revenues to repay its $13,060,000 share of the 2007 revenue bonds. The Agency’s share of the revenue bonds was payable solely from the pledged tax increment revenues and from certain trust accounts held by the bond trustee. Total principal and interest remaining on the Successor Agency’s share of the bonds is $19,798,835. These bonds were refunded by the Tax Allocation Refunding Bonds, Series 2018.

City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 44 -
NOTE 5 - OTHER INFORMATION (continued)
G. Successor Agency Trust for Assets of Former Redevelopment Agency (continued) Successor Agency Tax Allocation Refunding Bonds, Series 2018 In February 2018, the City issued $8,635,000 in Tax Allocation Refunding Bonds, Series 2018 with interest rates ranging from 2.0% to 5.0%. The proceeds were used to refund the $9,760,000 of outstanding 2007 Revenue bonds which had interest rates ranging from 3.75% to 5.0%. The net proceeds of $10,075,743 from the Tax Allocation Refunding Bonds, Series 2018 (including a $303,756 premium and after payment of $367,169 in underwriting fees and other issuance costs) were used to redeem the refunded bonds soon thereafter. The City refunded the 2007 Revenue bonds to obtain an economic gain (difference between the present value of debt service payments on the old and new debt) of $1,451,235.

Future debt service in the Tax Allocation Refunding Bonds, Series 2018 is as follows:

Period Ending Principal Interest Debt Service
11/1/2025 $ 320,000 $ 233,263 $ 553,263
11/1/2026 340,000 226,863 566,863
11/1/2027 360,000 220,063 580,063
11/1/2028 390,000 202,063 592,063
11/1/2029 420,000 182,563 602,563
11/1/2030 455,000 161,563 616,563
11/1/2031 495,000 138,813 633,813
11/1/2032 520,000 123,963 643,963
11/1/2033 545,000 108,363 653,363
11/1/2034 560,000 92,013 652,013
11/1/2035 580,000 75,213 655,213
11/1/2036 600,000 57,813 657,813
11/1/2037 615,000 39,063 654,063
11/1/2038 635,000 19,844 654,844
$ 6,835,000 $ 1,881,456 $ 8,716,456
Loan City of Fortuna
On November 1, 2013, the City received from the State Department of Finance (DOF) a Finding of Completion Letter as regards the Successor Agency to the City’s former redevelopment agency that had been dissolved effective February 1, 2012. The DOF letter authorized the City to request a finding be made by the Oversight Board to the Successor Agency that the City’s loan agreements between the former redevelopment agency and the City be qualified as enforceable obligations of the Successor Agency under the laws governing the dissolution of the former agency. In addition, there is a requirement that the accumulated and unpaid interest on any such loans be recalculated using a DOF specified method, that any future repayments, if approved, are to be made subject to a specified formula, and that there will be amounts available pursuant to the formula that will enable the repayments to be made.

In addition, all such loan agreements, recalculations of interest, and formula-based repayments, are subject to approval of the Successor Agency’s Oversight Board and the DOF. The DOF had initially denied approval of this loan as an enforceable obligation of the Successor Agency, but on May 16, 2014, the DOF rescinded this denial, and the loan was approved as an enforceable obligation with an effective date of July 1, 2014, which date has approval of both the DOF and the Successor Agency’s Oversight Board. The City and the Successor Agency reinstated this loan for financial reporting purposes in fiscal 2015.

City of Fortuna

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
- 45 -
NOTE 5 - OTHER INFORMATION (concluded)
G. Successor Agency Trust for Assets of Former Redevelopment Agency (concluded) The original repayment schedule was as follows:

Year Ending June 30, Principal Interest Total
2026 $ 303,141 $ 53,694 $ 356,835
2027-2030 919,820 59,435 979,255
Total $ 1,222,961 $ 113,129 $ 1,336,090
The degree to which the above repayment schedule will be realized by the Successor Agency is not determinable at this time.

Changes in Long-Term Enforceable Obligations
Changes in long-term enforceable obligations for the year ended June 30, 2025 were:

Private Purpose Trust
Beginning
Balance Additions Deductions
Ending
Balance
Due Within
One year
2018 Tax Allocation Bonds $ 7,130,000 $ - $ 295,000 $ 6,835,000 $ 320,000 Bond premium 237,942 - 10,125 227,817 10,125
Loan City of Fortuna 1,497,197 - 274,236 1,222,961 303,141 Total $ 8,865,139 $ - $ 579,361 $ 8,285,778 $ 633,266-

REQUIRED SUPPLEMENTARY

INFORMATION SECTION
Variance
With Final
Budget
Original Final Actual Over (Under)

REVENUES
Property tax $ 601,200 $ 601,200 $ 762,942 $ 161,742
Sales tax 4,133,000 4,133,000 4,059,277 (73,723)
Other taxes 29,400 29,400 29,997 597
Transient occupancy taxes 740,000 740,000 710,119 (29,881) Property tax in lieu VLF 1,445,000 1,445,000 1,618,514 173,514 Licenses and permits 879,850 879,850 1,063,777 183,927
Fines and forfeitures 19,000 19,000 28,660 9,660
Intergovernmental 735,325 735,325 833,647 98,322
Investment earnings 362,498 362,498 839,380 476,882
Charges for services 1,142,400 1,142,400 846,260 (296,140) Miscellaneous 36,200 36,200 101,631 65,431
Total revenues 10,123,873 10,123,873 10,894,204 770,331

EXPENDITURES
General government 2,174,331 2,174,331 2,493,145 (318,814) Public safety 5,170,508 5,170,508 5,402,499 (231,991)
Public works and streets 1,777,021 1,777,021 785,901 991,120 Parks and recreation 2,221,779 2,221,779 1,714,735 507,044 Capital outlay - - 93,131 (93,131)
Debt service:

Principal - - 23,196 (23,196)
Interest - - 174 (174)
Total expenditures 11,343,639 11,343,639 10,512,781 830,858 Excess (deficiency) of revenues
over expenditures (1,219,766) (1,219,766) 381,423 1,601,189

OTHER FINANCING SOURCES (USES)
Subscriptions - - 93,131 93,131
Transfers in 1,341,583 1,341,583 370,056 (971,527)
Transfers out (1,540,767) (1,540,767) (515,178) 1,025,589 Total other financing sources and (uses) (199,184) (199,184) (51,991) 147,193 Net change in fund balance $ (1,418,950) $ (1,418,950) 329,432 $ 1,748,382 Fund balance - beginning (restated) 12,571,653
Fund balance - ending $ 12,901,085
Budgeted Amounts
City of Fortuna

GENERAL FUND

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2025
2025
- 46 -
Variance
With Final
Budget
Original Final Actual Over (Under)

REVENUES
Property tax $ - $ - $ - $ -
Sales tax - - - -
Other taxes - - - -
Licenses and permits - - - -
Fines and forfeitures - - - -
Intergovernmental - - - -
Investment earnings 1,000 1,000 27,295 26,295
Charges for services - - 94,901 94,901
Miscellaneous 65,624 65,624 65,624 -
Total revenues 66,624 66,624 187,820 121,196

EXPENDITURES
General government - - - -
Public safety - - - -
Public works and streets - - - -
Parks and recreation - - - -
Business development and housing - - - -
Debt service:

Community development 25,000 25,000 - 25,000
Recreation and leisure - - - -
Total expenditures 25,000 25,000 - 25,000
Excess (deficiency) of revenues
over expenditures 41,624 41,624 187,820 146,196

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total other financing sources and (uses) - - - -
Net change in fund balance $ 41,624 $ 41,624 187,820 $ 146,196 Fund balance - beginning 399,679
Fund balance - ending $ 587,499
Budgeted Amounts
City of Fortuna

CITY HOUSING FUND

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2025
2025
- 47 -
Fiscal Year End 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Measurement Date 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability 0.10900% 0.10756% 0.12932% 0.06509% 0.05737% 0.05650% 0.05732% 0.05653% 0.05635% 0.05626% Proportion share of the net pension liability $ 5,271,996 $ 5,378,476 $ 6,051,337 $ 3,520,361 $ 6,242,335 $ 5,789,728 $ 5,523,979 $ 5,606,420 $ 4,875,960 $ 3,861,523 Covered - employee payroll $ 3,323,233 $ 3,223,506 $ 2,859,670 $ 2,363,708 $ 2,354,031 $ 2,259,591 $ 2,183,738 $ 1,961,439 $ 1,956,851 $ 1,916,943 Proportionate share of the net pension liability
as percentage of covered-employee payroll 158.64% 166.85% 211.61% 148.93% 149.85% 145.84% 144.23% 164.81% 143.54% 117.12% Plan fiduciary net position as a percentage
of the total pension liability 79.91% 77.97% 78.19% 85.65% 42.44% 42.84% 42.91% 42.27% 42.67% 45.58% Fiscal Year End 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Measurement Date 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability 0.06794% 0.06767% 0.07592% 0.0526% 0.04416% 0.04277% 0.04322% 0.04151% 0.04146% 0.04050% Proportion share of the net pension liability $ 4,953,488 $ 5,058,204 $ 5,216,582 $ 2,844,891 $ 4,804,296 $ 4,382,118 $ 4,164,545 $ 4,117,086 $ 3,587,924 $ 2,779,976 Covered - employee payroll $ 1,425,335 $ 1,407,821 $ 1,236,595 $ 1,783,149 $ 1,811,735 $ 1,710,234 $ 1,646,327 $ 1,440,387 $ 1,439,929 $ 1,380,040 Proportionate share of the net pension liability
as percentage of covered-employee payroll 347.53% 359.29% 421.85% 159.54% 115.33% 110.39% 108.73% 121.02% 105.63% 84.32% Plan fiduciary net position as a percentage
of the total pension liability 76.66% 74.87% 75.53% 84.58% 32.66% 32.42% 32.35% 31.04% 31.39% 32.82% NOTES TO SCHEDULE:

Fiscal year 2015 was the 1st year of implementation.

Miscellaneous Risk Pool
Safety Risk Pool
City of Fortuna

SCHEDULE OF THE LOCAL GOVERNMENT'S PROPORTIONATE

SHARE OF THE NET PENSION LIABILITY - ALL PLANS
June 30, 2025
- 48 -
Fiscal Year End 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Miscellaneous Risk Pool
Contractually required contribution
(actuarially determined) $ 772,283 $ 666,946 $ 761,139 $ 751,290 $ 930,044 $ 663,266 $ 771,079 $ 510,867 $ 451,381 $ 427,550 Contributions in relation to the actuarially
determined contributions $(1,122,283) $ (666,946) (1,741,139) (1,886,886) (930,044) (663,266) (771,079) (510,867) (451,381) (427,550) Contribution deficiency (excess) $ (350,000) $ - $ (980,000) $(1,135,596) $ - $ - $ - $ - $ - $ - Covered - employee payroll $ 3,462,596 $ 3,323,233 $ 3,223,506 $ 2,334,871 $ 2,363,708 $ 2,354,031 $ 2,259,591 $ 2,183,738 $ 1,961,439 $ 1,956,851 Contributions as a percentage
of covered-employee payroll 32.41% 20.07% 54.01% 32.18% 39.35% 28.18% 34.12% 23.39% 23.01% 21.85% Safety Risk Pool 2025 2025 2024 2023 2022 2021 2020 2019 2018 2016 Contractually required contribution
(actuarially determined) $ 666,229 $ 614,268 $ 612,324 $ 566,762 $ 556,264 $ 468,825 $ 544,179 $ 369,424 $ 322,559 $ 296,164 Contributions in relation to the actuarially
determined contributions $ (916,229) $ (614,268) (1,032,324) (971,166) (556,264) (468,825) (544,179) (369,424) (322,559) (296,164) Contribution deficiency (excess) $ (250,000) $ - $ (420,000) $ (404,404) $ - $ - $ - $ - $ - $ - Covered - employee payroll $ 1,317,394 $ 1,425,335 $ 1,407,821 $ 1,761,394 $ 1,783,149 $ 1,811,735 $ 1,710,234 $ 1,646,327 $ 1,440,387 $ 1,439,929 Contributions as a percentage
of covered-employee payroll 69.55% 43.10% 73.33% 32.18% 31.20% 25.88% 31.82% 22.44% 22.39% 20.57% NOTES TO SCHEDULE:

Fiscal year 2015 was the 1st year of implementation.

City of Fortuna

SCHEDULE OF CONTRIBUTIONS - ALL PLANS
June 30, 2025
- 49 -

SUPPLEMENTARY SECTION
Unrestricted
Storm Trans- Business Business RSTP
Integrated Drain Drainage portation Engineering Gas Tax Improve- Revolving HSIP CDBG Waste Maintenance Facility Fund SB325 Fund 273 2105 RMRA-SB1 ment Loan and HCAOG Business Assets
Cash and investments $ 104,770 $ 10,532 $ 209,430 $ 941,608 $ - $ - $ 711,064 $ 43,533 $ 704,088 $ 184,453 $ 800,451 Receivables:

Accounts receivable 1,862 4,818 - - - 30,596 60,254 - 2,130 - - Notes receivable - - - 10,978 - - - - 357,621 - 739,098 Due from other funds - - 270,439 - - - - - - - -
Total assets $ 106,632 $ 15,350 $ 479,869 $ 952,586 $ - $ 30,596 $ 771,318 $ 43,533 $ 1,063,839 $ 184,453 $ 1,539,549 Liabilities
Liabilities
Accounts payable $ 102 $ 425 $ - $ - $ - $ 6,124 49,435 $ 555 $ - $ - $ - Unearned revenue - - - - - - - - - - -
Due to other funds - - - - - 24,469 - - - - -
Total liabilities 102 425 - - - 30,593 49,435 555 - - - Deferred inflows of resources
Long-term notes receivable - - - 10,978 - - - - 357,621 - 739,098 Fund balances
Restricted for:

Economic development - - - - - - - 42,978 706,218 - 800,451 Streets and storm drains 106,530 14,925 479,869 941,608 - 3 721,883 - - 184,453 - Unrestricted - - - - - - - - - - -
Total fund balances 106,530 14,925 479,869 941,608 - 3 721,883 42,978 706,218 184,453 800,451 Total liabilities & fund
balances $ 106,632 $ 15,350 $ 479,869 $ 952,586 $ - $ 30,596 $ 771,318 $ 43,533 $ 1,063,839 $ 184,453 $ 1,539,549 Special Revenue
City of Fortuna

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2025
- 50 -
HOPS,
Rodeo, &
CDBG McClean Police STIP/TEA Abatement Capital Proj. Special Unrestricted Small Parks FEMA Fund Fund Fund Fund Grants Totals Assets
Cash and investments $ 254,691 $ 14,359 $ - $ 263,720 $ - $ - 103,853 $ - $ 4,346,552 Receivables:

Accounts receivable - - - - 260,089 - 95,802 56,802 512,353 Notes receivable - - - - - - - - 1,107,697
Due from other funds - - - - - - - - 270,439
Total assets $ 254,691 $ 14,359 $ - $ 263,720 $ 260,089 $ - $ 199,655 $ 56,802 $ 6,237,041 Liabilities
Liabilities
Accounts payable $ - $ 6,332 $ - $ - $ 77,374 $ - $ 87,651 $ - $ 227,998 Unearned revenue - - - - - - - - -
Due to other funds - - - - 182,715 6,453 - 56,802 270,439 Total liabilities - 6,332 - - 260,089 6,453 87,651 56,802 498,437 Deferred inflows of resources
Long-term notes receivable - - - - - - - - 1,107,697
Fund balances
Restricted for:

Safety programs - - - 263,720 - - - - 263,720
Economic development 254,691 8,027 - - - - - - 1,812,365 Streets and storm drains - - - - - - 112,004 - 2,561,275 Unrestricted - - - - - (6,453) - - (6,453)
Total fund balances 254,691 8,027 - 263,720 - (6,453) 112,004 - 4,630,907 Total liabilities & fund
balances $ 254,691 $ 14,359 $ - $ 263,720 $ 260,089 $ - $ 199,655 $ 56,802 $ 6,237,041 Special Revenue
City of Fortuna

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2025
- 51 -
Unrestricted
Storm Trans- Business Business RSTP
Integrated Drain Drainage portation Engineering Gas Tax Improve- Revolving HSIP CDBG Waste Maintenance Facility Fund SB325 Fund 273 2105 RMRA-SB1 ment Loan & HCAOG Business Revenues
Intergovernmental $ - $ - $ - $ - $ - $ 360,856 $ 341,932 $ - $ - $ 82,672 $ - Charges for services 22,627 77,248 30,681 - - - - 4,400 24,376 - - Interest 5,147 629 23,777 48,429 - (6,902) 34,810 - 34,879 11,364 37,196 Miscellaneous - - - - - - - - - - 144,763
Total revenues 27,774 77,877 54,458 48,429 - 353,954 376,742 4,400 59,255 94,036 181,959 Expenditures
Current:

Public works & streets - 58,755 - 85,057 - 484,430 255,573 - - 145,221 - Economic development - - - - - - - 17,705 - - 168,669
Sanitation and recycling 21,176 - - - - - - - - - -
Capital outlay - - - - - - - - - - -
Debt service:

Principal - - - - - - - - - - -
Interest - - - - - - - - - - -
Total expenditures 21,176 58,755 - 85,057 - 484,430 255,573 17,705 - 145,221 168,669 Excess (deficiency) of
revenues over expenditures 6,598 19,122 54,458 (36,628) - (130,476) 121,169 (13,305) 59,255 (51,185) 13,290 Other financing sources
(Uses)
Transfers in - - - - - 130,479 - - - - -
Transfers out - - - - - - - - - - -
Total other financing
sources (uses) - - - - - 130,479 - - - - -
Net change in fund balances 6,598 19,122 54,458 (36,628) - 3 121,169 (13,305) 59,255 (51,185) 13,290 Fund balances, July 1 99,932 (4,197) 425,411 978,236 - - 600,714 56,283 646,963 235,638 787,161 Fund balances, June 30 $ 106,530 $ 14,925 $ 479,869 $ 941,608 $ - $ 3 $ 721,883 $ 42,978 $ 706,218 $ 184,453 $ 800,451 Special Revenue
City of Fortuna

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2025
- 52 -
HOPS,
Rodeo, &
CDBG McClean Police STIP/TEA Abatement Capital Proj. Parking In Special Unrestricted Small Parks FEMA Fund Fund Fund Fund Lieu Grants Totals Revenues
Intergovernmental $ - $ - $ - $ 163,794 541,916 $ - $ 739,884 $ - $ 56,802 $ 2,287,856 Charges for services - - - - - - - - - 159,332
Interest 12,737 - - - - - - - - 202,066
Miscellaneous - - - - - - - - - 144,763
Total revenues 12,737 - - 163,794 541,916 - 739,884 - 56,802 2,794,017 Expenditures
Current:

Public works & streets - - - - 541,916 - 825,055 - - 2,396,007 Economic development - 40,592 - - - - - - - 226,966
Sanitation and recycling - - - - - - - - - 21,176
Capital outlay - - - - - - - - - -
Debt service:

Principal - - - - - - - - - -
Interest - - - - - - - - - -
Total expenditures - 40,592 - - 541,916 - 825,055 - - 2,644,149 Excess (deficiency) of
revenues over expenditures 12,737 (40,592) - 163,794 - - (85,171) - 56,802 149,868 Other financing sources
(Uses)
Transfers in - - - - - 5,000 - - - 135,479
Transfers out - - - - - - - - - -
Total other financing
sources (uses) - - - - - 5,000 - - - 135,479
Net change in fund balances 12,737 (40,592) - 163,794 - 5,000 (85,171) - 56,802 285,347 Fund balances, July 1 241,954 48,619 - 99,926 - (11,453) 197,175 - (56,802) 4,345,560 Fund balances, June 30 $ 254,691 $ 8,027 $ - $ 263,720 $ - $ (6,453) $ 112,004 $ - $ - $ 4,630,907 City of Fortuna

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2025
Special Revenue
- 53 -
Variance
With Final
Budget
Original Final Actual Over (Under)
Revenues
Charges for services: $ 24,000 $ 24,000 $ 22,627 $ (1,373) Intergovernmental - - - -
Interest 500 500 5,147 4,647
Miscellaneous - - - -
Total revenues 24,500 24,500 27,774 3,274
Expenditures
Sanitation and recycling 61,142 61,142 21,176 39,966
Total expenditures 61,142 61,142 21,176 39,966
Excess (deficiency) of revenues
over expenditures (36,642) (36,642) 6,598 43,240
Other financing sources (uses)
Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses) - - - -
Net change in fund balances $ (36,642) $ (36,642) 6,598 $ 43,240 Fund balance - beginning 99,932
Fund balance - ending $ 106,530
Budgeted Amounts
City of Fortuna

INTEGRATED WASTE SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
- 54 -
Variance
With Final
Budget
Original Final Actual Over (Under)
Revenues
Charges for services: $ 46,000 $ 46,000 $ 77,248 $ 31,248 Interest - - 629 581
Total revenues 46,000 46,000 77,877 31,829
Expenditures
Public works and streets 83,199 83,199 58,755 24,444
Total expenditures 83,199 83,199 58,755 24,444
Excess (deficiency) of revenues
over expenditures (37,199) (37,199) 19,122 56,273
Other financing sources (uses)
Transfers in (out) - - - -
Net change in fund balance $ (37,199) $ (37,199) 19,122 $ 56,273 Fund balance - beginning (4,197)
Fund balance - ending $ 14,925
Budgeted Amounts
City of Fortuna

STORM DRAIN MAINTENANCE SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
- 55 -
Variance
With Final
Budget
Original Final Actual Over (Under)
Revenues
Charges for services: $ 24,000 $ 24,000 $ 23,777 $ (223) Interest - - 30,681 30,681
Total revenues 24,000 24,000 54,458 30,458
Expenditures
Sanitation and recycling - - - -
Total expenditures - - - -
Excess (deficiency) of revenues
over expenditures 24,000 24,000 54,458 30,458
Other financing sources (uses)
Transfers in (out) - - - -
Net change in fund balance $ 24,000 $ 24,000 54,458 $ 30,458 Fund balance - beginning 425,411
Fund balance - ending $ 479,869
Budgeted Amounts
City of Fortuna

DRAINAGE FACILITY SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
- 56 -
Variance
With Final
Budget
Original Final Actual Over (Under)
Revenues
Intergovernmental $ 9,630 $ 9,630 $ - $ (9,630)
Interest 8,000 8,000 48,429 40,429
Miscellaneous - - - -
Total revenues 17,630 17,630 48,429 30,799
Expenditures
Public works & streets 100,000 100,000 85,057 14,943
Total expenditures 100,000 100,000 85,057 14,943
Excess (deficiency) of revenues
over expenditures (82,370) (82,370) (36,628) 45,742
Other financing sources (uses)
Transfers in - - - -
Transfers (out) - - - -
Total other financing sources (uses) - - - -
Net change in fund balance $ (82,370) $ (82,370) (36,628) $ 45,742 Fund balance - beginning 978,236
Fund balance - ending $ 941,608
Budgeted Amounts
City of Fortuna
TRANSPORTATION SB325 SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
- 57 -
Variance
With Final
Budget
Original Final Actual Over (Under)
Revenues
Gas tax 2105 $ 77,733 $ 77,733 $ 77,925 $ 192
Gas tax 2106 56,849 56,849 57,036 187
Gas tax 2107 106,233 106,233 103,372 (2,861)
Gas tax 2107.5 3,000 3,000 3,000 -
Gas tax 2103 111,186 111,186 119,523 8,337
Interest - - (6,902) (6,902)
Total revenues 355,001 355,001 353,954 (1,047)
Expenditures
Public works and streets 539,185 539,185 484,433 54,752 Total expenditures 539,185 539,185 484,433 54,752
Excess (deficiency) of revenues
over expenditures (184,184) (184,184) (130,479) 53,705
Other financing sources (uses)
Transfers in 184,184 184,184 130,479 (53,705)
Transfers (out) - - - -
Total other financing sources (uses) 184,184 184,184 130,479 (53,705) Net change in fund balance $ - - $ - $ -
Fund balance - beginning 3
Fund balance - ending 3 $
Budgeted Amounts
City of Fortuna
GAS TAX 2105 SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
- 58 -
Variance
With Final
Budget
Original Final Actual Over (Under)
Revenues
Intergovernmental $ 320,442 $ 320,442 $ 341,932 $ 21,490 Interest - - 34,810 34,810
Miscellaneous - - - -
Total revenues 320,442 320,442 376,742 56,300
Expenditures
Public works & streets 500,000 500,000 255,573 244,427
Total expenditures 500,000 500,000 255,573 244,427
Excess (deficiency) of revenues
over expenditures (179,558) (179,558) 121,169 300,727
Other financing sources (uses)
Transfers in - - - -
Transfers (out) - - - -
Total other financing sources (uses) - - - -
Net change in fund balance $ (179,558) $ (179,558) 121,169 $ 300,727 Fund balance - beginning 600,714
Fund balance - ending $ 721,883
Budgeted Amounts
City of Fortuna
RMRA-SB1 SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
- 59 -
Variance
With Final
Budget
Original Final Actual Over (Under)
Revenues
Charges for service $ 26,000 $ 26,000 $ 24,376 $ (1,624) Interest - - 34,879 34,879
Miscellaneous - - - -
Total revenues 26,000 26,000 59,255 33,255
Expenditures
Public works & streets - - - -
Economic development 25,000 25,000 - 25,000
Total expenditures 25,000 25,000 - 25,000
Excess (deficiency) of revenues
over expenditures $ 1,000 $ 1,000 59,255 $ 58,255
Fund balance - beginning 646,963
Fund balance - ending $ 706,218
Budgeted Amounts
City of Fortuna

UNRESTRICTED BUSINESS REVOLVING LOAN SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
- 60 -
Variance
With Final
Budget
Original Final Actual Over (Under)
Revenues
Interest $ - $ - $ 37,196 $ 37,196
Miscellaneous - - 144,763 144,763
Total revenues - - 181,959 181,959
Expenditures
Economic development 85,000 85,000 168,669 (83,669)
Total expenditures 85,000 85,000 168,669 (83,669)
Excess (deficiency) of revenues
over expenditures $ (85,000) $ (85,000) 13,290 $ 98,290 Fund balance - beginning 787,161
Fund balance - ending $ 800,451
Budgeted Amounts
City of Fortuna

CDBG BUSINESS SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
- 61 -
Variance
With Final
Budget
Original Final Actual Over (Under)
Revenues
Interest $ - $ - $ 12,737 $ 12,737
Total revenues - - 12,737 12,737
Expenditures
Economic development 15,000 15,000 - 15,000
Total expenditures 15,000 15,000 - 15,000
Excess (deficiency) of revenues
over expenditures $ (15,000) $ (15,000) 12,737 $ 27,737 Fund balance - beginning 241,954
Fund balance - ending $ 254,691
Budgeted Amounts
City of Fortuna

CDBG UNRESTRICTED SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
- 62 -
Variance
With Final
Budget
Original Final Actual Over (Under)
Revenues
Intergovernmental $ 5,000 $ $ 5,000 - $ (5,000)
Interest - - - -
Total revenues 5,000 5,000 - (5,000)
Expenditures
Economic development - - 40,592 (40,592)
Total expenditures - - 40,592 (40,592)
Excess (deficiency) of revenues
over expenditures 5,000 5,000 (40,592) (45,592)
Other financing sources (uses)
Transfers in - - - -
Transfers (out) - - - -
Total other financing sources (uses) - - - -
Net change in fund balance $ 5,000 $ 5,000 (40,592) $ (45,592) Fund balance - beginning 48,619
Fund balance - ending $ 8,027
Budgeted Amounts
City of Fortuna

SMALL PARKS SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
- 63 -

STATISTICAL SECTION
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities:

Net investment in capital assets under both
governmental and business type activities
and under primary government: $ 8,883,363 $ 11,846,993 $ 17,722,340 $ 17,997,022 $ 21,272,422 $ 22,938,620 $ 22,324,159 $22,815,196 $ 25,934,919 $ 26,110,435 Restricted
Debt Service 1,252,512 1,363,828 - - - - - - - -
Capital projects 3,211,141 2,535,596 89 - - - - - - -
Safety Programs - - - - - - - 53,680 99,926 263,720
Affordable Housing 11,745,661 11,870,221 - - 351,981 420,783 435,819 559,900 658,339 856,302 Streets 2,090,484 1,913,382 1,734,818 1,967,334 1,672,003 1,486,961 1,494,209 1,993,133 2,335,734 2,561,275 Economic development 2,648,818 2,782,407 - - 1,409,696 1,649,497 1,662,770 1,743,976 1,780,976 1,812,365 Other purposes 10,774 10,558 - - - - - - - -
Unrestricted 2,991,176 2,957,739 18,854,650 20,316,152 18,125,213 20,164,380 22,900,113 24,737,533 23,900,958 23,652,066 Total governmental activities net position: $ 32,833,929 $ 35,280,724 $ 38,311,897 $ 40,280,508 $ 42,831,315 $ 46,660,241 $ 48,817,070 $ 51,903,418 $ 54,710,852 $ 55,256,163 Business-type activities:

Net investment in capital assets $ 18,127,850 $ 18,784,436 $ 22,091,082 $ 22,315,106 $ 22,073,693 $ 22,436,735 $ 23,162,546 $23,573,474 22,941,184 $ 24,685,902 Restricted
Debt Service 1,724,364 1,723,124 - - - - - - - -
Capital Projects - - - - - - - - - -
Unrestricted 18,282,153 18,962,159 18,007,098 18,512,484 19,360,266 19,296,574 18,994,292 19,422,333 20,911,489 21,463,012 Total business-type activities: $ 38,134,367 $ 39,469,719 $ 40,098,180 $ 40,827,590 $ 41,433,959 $ 41,733,309 $ 42,156,838 $ 42,995,807 $ 43,852,673 $ 46,148,914 Primary Government - City-Wide Totals
Invested in capital assets, net of related debt $ 27,011,213 $ 30,631,429 $ 39,813,422 $ 40,312,128 $ 43,346,115 $ 45,375,355 $ 45,486,705 $46,388,670 $ 48,876,103 $ 50,796,337 Restricted - - - - - - - - - -
Debt Service 2,976,876 3,086,952 - - - - - - - -
Capital Projects 3,211,141 2,535,596 89 - - - - - - -
Safety Programs - - - - - - - 53,680 99,926 263,720
Affordable Housing 11,745,661 11,870,221 - - 351,981 420,783 435,819 559,900 658,339 856,302 Economic Development 2,648,818 2,782,407 - - 1,409,696 1,649,497 1,662,770 1,743,976 2,335,734 2,561,275 Streets 2,090,484 1,913,382 1,734,818 1,967,334 1,672,003 1,486,961 1,494,209 1,993,133 1,780,976 1,812,365 Other purposes 10,774 10,558 - - - - - - - -
Unrestricted 21,273,329 21,919,898 36,861,748 38,828,636 37,485,479 39,460,954 41,894,405 44,159,866 44,812,447 45,115,078 Total primary government net position: $ 70,968,296 $ 74,750,443 $ 78,410,077 $ 81,108,098 $ 84,265,274 $ 88,393,550 $ 90,973,908 $ 94,899,225 $ 98,563,525 $ 101,405,077 Notes and Data Sources:

Statement of Net Position
City of Fortuna
Net Position by Component
Ten Year Analysis
(Accrual basis of accounting)
Fiscal Years Ending June 30
- 64 -

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses:

Governmental activities:

General government $ 1,056,456 $ 1,171,423 $ 948,148 $ 1,023,535 $ 1,551,022 $ 1,622,797 $ 2,411,874 $ 2,365,729 $ 1,813,813 $ 2,496,729 Public safety 3,071,641 3,613,537 4,054,483 4,673,569 4,901,665 4,171,065 4,082,365 3,840,329 5,191,420 5,845,446 Streets 664,188 2,117,875 3,677,131 1,369,760 2,594,420 4,071,600 2,767,529 2,832,697 2,656,035 3,029,588 Parks and recreation 1,221,248 1,247,103 966,252 1,291,958 1,201,330 1,027,191 1,697,162 1,700,784 1,682,388 1,714,735 Sanitation 43,095 25,147 606,909 577,716 204,152 414,414 63,515 84,005 32,392 21,176 Redevelopment and housing 94,393 75,724 310,856 - - - - - 405,962 226,966 Interest on long-term debt 73,164 111,894 76,131 976 - - - - - - Total governmental activities expenses 6,224,185 8,362,703 10,639,910 8,937,514 10,452,589 11,307,067 11,022,445 10,823,544 11,782,010 13,334,640 Business-type activities:

Water 2,206,878 2,213,797 2,754,457 3,265,841 2,820,380 2,963,179 3,418,851 3,472,676 3,779,241 3,332,856 Wastewater 3,331,929 3,391,969 3,980,231 4,099,072 4,213,456 4,691,028 4,256,162 4,347,518 5,035,336 6,391,042 Transit 344,951 306,147 318,957 332,764 352,824 369,082 385,274 437,571 418,798 421,530 Total business-type activities expenses 5,883,758 5,911,913 7,053,645 7,697,677 7,386,660 8,023,289 8,060,287 8,257,765 9,233,375 10,145,428 Total City government expenses $ 12,107,943 $ 14,274,616 $ 17,693,555 $ 16,635,191 $ 17,839,249 $ 19,330,356 $ 19,082,732 $ 19,081,309 $ 21,015,385 $ 23,480,068 Program Revenues:

Governmental activities:

Charges for services:

General government $ 371,856 $ 360,154 $ - $ - $ - $ - $ - $ - - $ - Public safety 504,948 575,304 44,667 75,145 44,610 30,773 30,896 33,658 34,345 28,660 Streets 83,551 75,645 796,693 760,656 742,421 777,428 951,453 912,502 1,008,735 1,063,777 Parks and recreation 458,292 421,856 814,528 865,276 697,775 1,036,462 872,212 1,195,070 1,134,353 1,100,493 Sanitation 53,873 23,039 - - - - - - - -
Redevelopment and housing 434,634 442,268 - - - - - - - - Operating grants and contributions 650,242 758,046 - - - - - - - - Capital grants and contributions 996,076 3,574,696 4,956,839 2,237,448 4,407,521 5,007,997 2,351,031 2,567,738 3,826,674 3,121,503 Total governmental activities program revenues: 3,553,472 6,231,008 6,612,727 3,938,525 5,892,327 6,852,660 4,205,592 4,708,968 6,004,107 5,314,433 City of Fortuna
Changes in Net Position
(Accrual Basis of Accounting)
Fiscal Years Ending June 30
- 65 -

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
City of Fortuna
Changes in Net Position
(Accrual Basis of Accounting)
Fiscal Years Ending June 30
Business-type activities:

Charges for services:

Water 2,402,085 2,319,601 2,621,238 2,394,356 2,398,729 2,504,339 2,469,628 2,537,279 2,558,279 3,134,922 Wastewater 3,536,519 3,513,379 4,023,978 3,646,004 3,512,378 3,717,201 3,788,723 3,661,972 3,725,962 4,676,425 Transit 14,796 26,279 17,390 21,169 16,815 17,674 15,377 17,127 16,857 25,490 Operating grants and contributions 279,140 290,697 880,162 1,796,450 1,395,602 2,018,214 2,485,727 2,418,049 2,694,553 3,511,474 Capital grants and contributions 393,468 987,984 - - - - - - - - Total business-type activities programs revenues 6,626,008 7,137,940 7,542,768 7,857,979 7,323,524 8,257,428 8,759,455 8,634,427 8,995,651 11,348,311 Total City government program revenues $ 10,179,480 $ 13,368,948 $ 14,155,495 $ 11,796,504 $ 13,215,851 $ 15,110,088 $ 12,965,047 $ 13,343,395 $ 14,999,758 $ 16,662,744 Net(Expense)Revenue:

Governmental activities $ (2,670,713) $ (2,131,695) $ (4,027,183) $ (4,998,989) $ (4,560,262) $ (4,454,407) $ (6,816,853) $ (6,114,576) (5,777,903) $ (8,020,207) Business-type activities 742,250 1,226,027 489,123 160,302 (63,136) 234,139 699,168 376,662 (237,724) 1,202,883 Total City government $ (1,928,463) $ (905,668) $ (3,538,060) $ (4,838,687) $ (4,623,398) $ (4,220,268) $ (6,117,685) $ (5,737,914) $ (6,015,627) $ (6,817,324) General Revenues and Other Changes in
in Net Position:

Governmental activities:

Taxes:

Property taxes $ 423,766 $ 419,613 $ 536,843 $ 485,385 $ 527,434 $ 611,929 $ 610,620 $ 694,633 722,063 $ 762,942 Sales taxes 1,834,956 2,271,213 3,369,282 3,397,522 3,504,126 4,295,714 4,339,191 3,973,992 4,145,631 4,059,277 Transient occupancy taxes 610,627 683,432 695,921 612,993 549,218 755,125 951,039 782,808 722,447 710,119 Other taxes 417,310 443,133 136,328 24,193 36,371 28,551 45,512 35,526 23,172 29,997 Property Tax in lieu VLF 1,050,708 1,062,434 1,111,193 1,166,134 1,251,984 1,305,039 1,354,606 1,443,652 1,537,780 1,618,514 Unrestricted investment earnings 98,452 8,917 77,605 323,693 311,147 230,087 (75,427) 547,915 356,492 312,018 Other general revenues - - 1,108,711 961,512 936,480 1,061,319 1,753,685 1,731,333 1,085,132 1,082,294 Transfers 10,597 10,559 22,478 (3,832) (5,691) (4,431) (5,536) (8,932) (7,378) (9,643) Total governmental activities 4,446,416 4,899,301 7,058,361 6,967,600 7,111,069 8,283,333 8,973,690 9,200,927 8,585,339 8,565,518 Business-type activities
Unrestricted investment earnings - - 161,816 565,280 663,814 60,780 (281,252) 453,375 1,087,212 1,083,715 Transfers (10,597) (10,559) (22,478) 3,832 5,691 4,431 5,536 8,932 7,378 9,643 Total business-type activities (10,597) (10,559) 139,338 569,112 669,505 65,211 (275,716) 462,307 1,094,590 1,093,358 Total City government $ 4,435,819 $ 4,888,742 $ 7,197,699 $ 7,536,712 $ 7,780,574 $ 8,348,544 $ 8,697,974 $ 9,663,234 $ 9,679,929 $ 9,658,876 - 66 -

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
City of Fortuna
Changes in Net Position
(Accrual Basis of Accounting)
Fiscal Years Ending June 30
Change in net position:

Governmental activities $ 1,775,703 $ 2,767,606 $ 3,031,178 $ 1,968,611 $ 2,550,807 $ 3,828,926 $ 2,156,837 $ 3,086,351 2,807,436 $ 545,311 Business-type activities 731,653 1,215,468 628,461 729,414 606,369 299,350 423,452 838,969 856,866 2,296,241 Total City government $ 2,507,356 $ 3,983,074 $ 3,659,639 $ 2,698,025 $ 3,157,176 $ 4,128,276 $ 2,580,289 $ 3,925,320 $ 3,664,302 $ 2,841,552 Notes and Data Sources:

Statement of Activities
- 67 -
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Reserved
Nonspendable $ 24,392 $ 26,445 $ 19,319 $ 2,003 $ 2,291 $ 3,968 $ 3,717 $ 3,011 $ 1,512 $ 1,900 Assigned for contingencies - - - - - - - - - 7,500,000
Unassigned 4,855,162 5,233,809 7,096,062 8,313,297 8,500,709 10,581,685 12,513,157 13,133,338 12,570,137 5,399,185 Total General Fund $ 4,879,554 $ 5,260,254 $ 7,115,381 $ 8,315,300 $ 8,503,000 $10,585,653 $12,516,874 $13,136,349 $12,571,649 $ 12,901,085 All Other Governmental Funds
Reserved
Nonspendable $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Restricted 8,089,918 7,295,951 3,369,065 3,757,244 3,122,511 3,557,241 3,592,798 4,350,689 4,874,975 5,493,662 Unassigned - - - - - (210,811) (62,201) (164,612) 128,920 (6,453) Total All Other Governmental Funds $ 8,089,918 $ 7,295,951 $ 3,369,065 $ 3,757,244 $ 3,122,511 $ 3,346,430 $ 3,530,597 $ 4,186,077 $ 5,003,895 $ 5,487,209 Total All Governmental Funds $12,969,472 $12,556,205 $10,484,446 $12,072,544 $11,625,511 $13,932,083 $16,047,471 $17,322,426 $17,575,544 $ 18,388,294 Notes and Data Sources:

Balance Sheet
City of Fortuna
Fund Balances - Governmental Funds
Ten Year Analysis
Fiscal Years Ending June 30
- 68 -
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues:

Taxes $ 3,287 $ 3,812 $ 5,790 $ 5,686 $ 5,868 $ 6,997 $ 7,301 $ 6,930 $ 7,151 $ 7,181 Licenses and permits 309 364 797 761 742 777 951 913 1,009 1,064 Fines and forfeits 57 47 44 75 45 31 31 34 34 29
Charges for services 993 967 815 865 698 1,036 872 1,195 3,827 3,122 Special assessments 55 253 60 - - - - - - -
Intergovernmental 2,654 5,029 4,957 2,237 4,408 5,008 2,351 2,568 1,134 1,100 Investment earnings 125 32 78 324 311 230 (75) 548 1,085 1,082 Other revenues 541 584 1,104 962 937 1,061 1,754 1,731 356 312 Total revenues: 8,021 11,088 13,645 10,910 13,009 15,140 13,185 13,919 14,596 13,890 Expenditures:

General government 1,146 1,045 719 1,023 1,551 1,623 2,411 2,366 1,814 2,497 Public safety 3,541 3,403 3,575 4,796 4,640 4,120 4,755 5,161 4,626 5,402 Parks and recreation 1,023 1,103 966 1,292 1,201 1,027 1,697 1,701 1,683 1,715 Highways and streets 578 741 2,423 1,575 5,817 5,722 2,121 3,315 5,752 3,182 Health and welfare 43 25 607 578 204 414 64 84 32 21
Economic development
and redevelopment 101 74 311 - - - - - 406 227
Capital outlay 2,281 4,333 4,749 - - - - - 93 93
Debt service:

Principal 316 323 2,313 53 37 - 16 8 23 23
Interest 125 116 76 1 - - - - - -
Total expenditures: 9,154 11,163 15,739 9,318 13,450 12,906 11,064 12,635 14,429 13,160 Excess of revenues
over(under)
expenditures (1,133) (75) (2,094) 1,592 (441) 2,234 2,121 1,284 167 730 Other Financing
Sources(Uses)
Capital Financing 370 - - - - - - - 93 93
Contribution from Successor - - - - - - - - - -
Transfers in 436 1,512 1,545 279 563 482 546 655 295 505 Transfers out (425) (1,501) (1,523) (283) (569) (486) (551) (664) (302) (515) Total other financing
sources(uses) 381 11 22 (4) (6) (4) (5) (9) 86 83
Net change in fund
balances $ (752) $ (64) $ (2,072) $ 1,588 $ (447) $ 2,230 $ 2,116 $ 1,275 $ 253 $ 813 Debt service as a
percentage of noncapital expenditures 6.42% 6.43% 21.74% 0.58% 0.28% 0.00% 0.14% 0.06% 0.16% 0.18% Notes and Data Sources:

Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds City of Fortuna
Changes in Fund Balances - Governmental Funds
Ten Year Analysis
(Thousands of Dollars)
(Modified accrual basis of accounting)
- 69 -
Estimated Assessed Value
Fiscal Total Direct Actual as a Percentage
Year Secured Unsecured Totals Tax Rate Taxable Value of Actual Value 2016 887,691 39,721 927,412 1.00% 2,275,972 40.75%
2017 917,470 42,235 959,705 1.00% 2,354,011 40.77%
2018 942,807 42,444 985,251 1.00% 2,417,652 40.75%
2019 985,818 43,128 1,028,946 1.00% 2,526,156 40.73%
2020 1,047,984 53,733 1,101,717 1.00% 2,696,721 40.85%
2021 1,093,129 56,232 1,149,361 1.00% 2,813,154 40.86%
2022 1,128,128 60,854 1,188,982 1.00% 2,907,254 40.90%
2023 1,204,033 64,747 1,268,780 1.00% 3,102,578 40.89%
2024 1,279,143 70,772 1,349,915 1.00% 3,298,960 40.92%
2025 1,350,301 67,052 1,417,353 1.00% 3,471,541 40.83%
Notes and Data Sources:

HdL, Coren & Cone, Humboldt County Assessor Combined Tax Rolls.

Assessed Taxable Values
Schedule 5
City of Fortuna
Assessed Value and Estimated Actual Value of Taxable Property Ten Year Analysis
(In thousands of dollars)
- 70 -
10-Year Detail of Taxpayer Rates for General Fund Tax Rate Area 005-0000 (direct rate agencies in bold) Agency 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 County of Humboldt General Tax District 0.1552 0.1627 0.1626 0.1626 0.1553 0.1532 0.1671 0.1545 0.1519 0.1513 County Library 0.0302 0.0302 0.0302 0.0302 0.0302 0.0299 0.0326 0.0302 0.0299 0.0299 County School Service 0.0147 0.0147 0.0147 0.0147 0.0147 0.0146 0.0159 0.0147 0.0146 0.0146 ERAF Share of County General Tax District 0.1660 0.1585 0.1586 0.1586 0.1659 0.1643 0.1793 0.1667 0.1655 0.1662 ERAF Share of Fortuna General Fund 0.0283 0.0266 0.0270 0.0270 0.0286 0.0284 0.0305 0.0285 0.0282 0.0276 Fortuna Cemetery District 0.0041 0.0041 0.0041 0.0041 0.0041 0.0041 0.0044 0.0041 0.0041 0.0040 Fortuna Fire Protection 0.0417 0.0417 0.0417 0.0417 0.0417 0.0412 0.0450 0.0417 0.0413 0.0413 Fortuna Union High School District 0.2134 0.2134 0.2134 0.2134 0.2134 0.2114 0.2306 0.2134 0.2114 0.2114 Fortuna School District 0.2196 0.2196 0.2196 0.2196 0.2196 0.2297 0.1598 0.2196 0.2297 0.2298 Fortuna General Fund 0.0450 0.0466 0.0463 0.0463 0.0447 0.0442 0.0487 0.0448 0.0445 0.0450 Humboldt Bay Harbor Recreation 0.0093 0.0093 0.0093 0.0093 0.0093 0.0092 0.0101 0.0093 0.0092 0.0090 Humboldt Flood Zone 1-1 0.0056 0.0056 0.0056 0.0056 0.0056 0.0035 0.0039 0.0056 0.0035 0.0036 Redwood Junior College District 0.0649 0.0649 0.0649 0.0649 0.0649 0.0643 0.0700 0.0649 0.0642 0.0643 Rohner Community Park & Recreation Dist. 0.0020 0.0020 0.0020 0.0020 0.0020 0.0020 0.0021 0.0020 0.0020 0.0020 Total Prop. 13 Rate 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 CR 2005/2007 Go Bond 0.0100 0.0080 0.0080 0.0080 0.0080 0.0050 0.0030 0.0050 0.0010 0.0010 Fortuna High Go Bonds 2000 0.0200 0.0170 0.0170 0.0160 0.0170 0.0150 0.0130 0.0130 0.0060 0.0030 Fortuna Elementary 0.0290 0.0330 0.0390 0.0720 0.0640 0.0680 0.0620 0.0550 0.0480 0.0510 Total Voter Approved Rate 0.0590 0.0580 0.0640 0.0960 0.0890 0.0880 0.0780 0.0730 0.0550 0.0550 Total Tax Rate 1.0590 1.0580 1.0640 1.0960 1.0890 1.0880 1.0780 1.0730 1.0550 1.0550 Notes and Data Sources:

Source: HDL Coren & Cone, and Humboldt County Assessor Tax Rate Tables In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are assessed for voter approved bonds.

Schedule 6
City of Fortuna
Direct and Overlapping Property Tax Rates
Ten Year Analysis
(Rates per $100 of assessed value)
- 71 -
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Rank Value
Redwood Memorial Hospital $ 16,163 1 1.74%
Gagliardi Bros 7,040 2 0.76%
HCP SH ELP 3 Properties LLC 6,937 3 0.75%
ARCP TS Fortuna California LLC 5,100 4 0.55%
Wendt Construction Company Inc. 4,870 5 0.53%
Safeway Inc. 4,462 6 0.48%
White Circle Commerce LLC 4,293 7 0.46%
Leonardo Logging and Construction Inc. 4,029 8 0.43%
Realty Income Corporation 4,022 9 0.43%
Carlos and Antonia Luna Trust 3,915 10 0.42%
Total $ 60,831 6.56%
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Rank Value
Bear River Band of Rohnerville Rancheria $ 15,393 1 1.09% Mercer Fraser Company 11,324 2 0.80%
Eretz Fortuna Properties LP 8,807 3 0.62%
White Circle Commerce LLC 8,356 4 0.59%
Bank of America NA & Donna Minardi 8,320 5 0.59%
Fortuna Hotel Venture LLC 7,629 6 0.54%
Dennis P and Tami B Fitze 6,143 7 0.43%
ARCP TS Fortuna California LLC 5,948 8 0.42%
Carlos and Antonia Luna Trust 5,704 9 0.40%
Travis L Schneider and Stephanie M Bode 5,698 10 0.40%
Total $ 83,322 5.88%
Notes and Data Sources:

HdL, Coren & Cone
(Dollar Amounts in Thousands)
2015-16
2024-25
Schedule 7
City of Fortuna
Principal Property Tax Payers - Top Ten Payers
Ranked In Order of Gross Assessed Values
Ten Year Analysis
- 72 -
Fiscal Year Percentage
Ended of
June 30 Taxes Levied Amount Levy
2016 423,766 423,766 100%
2017 419,613 419,613 100%
2018 487,024 487,024 100%
2019 444,411 444,411 100%
2020 491,394 491,394 100%
2021 546,042 546,042 100%
2022 552,367 552,367 100%
2023 647,718 647,718 100%
2024 666,815 666,815 100%
2025 714,413 714,413 100%
Notes and Data Sources:

City of Fortuna Tax Collection records and County of Humboldt Assessor's Office of The Levy
Schedule 8
City of Fortuna
Property Tax Levies and Collections
Ten Year Analysis
Collected Within The Fiscal Year
- 73 -
Total
City-Wide Retail City Revenue
Fiscal Retail Sales Sales Direct Recognized
Year Subject to Tax Tax Rate Tax Rate By the City
2016 183,495,600 8.00% 1.00% 1,834,956
2017 (1) 129,783,600 8.50% 1.75% 2,271,213
2018 192,530,400 8.50% 1.75% 3,369,282
2019 194,144,114 8.50% 1.75% 3,397,522
2020 200,235,771 8.50% 1.75% 3,504,126
2021 245,469,371 8.50% 1.75% 4,295,714
2022 247,953,771 8.50% 1.75% 4,339,191
2023 227,085,257 8.50% 1.75% 3,973,992
2024 236,893,200 8.50% 1.75% 4,145,631
2025 236,893,200 8.50% 1.75% 4,145,631
Notes and Data Sources:

The City's direct retail sales tax rate is established by the State of California.

Any increase in the City's direct tax rate requires voter approval by City residents. (1) In November, 2016 City voters approved Measure E, creating a new general use sales tax of 3/4%. This tax was implemented on April 1, 2017 and is effective for 16 years.

Schedule 8-A
City of Fortuna
Sales Tax Revenue Base Data
Ten Year Review
- 74 -
Business Name Business Category Business Name Business Category Ace Hardware & Garden Building Materials Ace Hardware & Garden Lumber/Building Materials Beverage Plus Foods Convenience Stores/Liquor Cigarette Payless Cigarette/Cigar Stores Burger King Quick-Service Restaurants Dollar General Variety Stores Eel River Brewing Casual Dining Eel River Brewing Casual Dining Eel River Hydroponics Garden/Agricultural Supplies Forbusco Lumber Lumber/Building Materials Eel Valley Appliance Electronics/Appliance Stores Fortuna Chevron Service Stations Forbusco Lumber Lumber/Building Materials Fortuna Gas 4 Less Service Stations Fortuna Chevron Service Stations Grocery Outlet Grocery Stores Fortuna Gas 4 Less Service Stations Hummel Tire & Wheel Automotive Supply Stores Hummel Tire & Wheel Automotive Supply Stores Les Schwab Tire Center Automotive Supply Stores L & M Renner Petroleum Prod/Equip McDonalds Quick-Service Restaurants Les Schwab Tire Centers Automotive Supply Stores Mercer Fraser Contractors McDonalds Restaurants No Alcohol O'Reilly Auto Parts Automotive Supply Stores Northcoast Horticulture Supply Garden/Agricultural Supplies Peterson Tractor Farm/Construction Equip O'Reilly Auto Parts Automotive Supply Stores Ray's Quality Cars Used Automotive Dealer Peterson Tractor Farm/Construction Equip Safeway Grocery Stores Liquor Rays Food Place Grocery Stores Liquor Sequoia Gas Service Stations Rite Aid Drug Stores Shell Service Stations
Riverwalk 76 Service Stations Sunbelt Rentals Repair Shop/Equip. Rentals Safeway Grocery Stores Liquor Tractor Supply Garden/Agricultural Supplies Sequoia Gas Service Stations United Petrol Service Stations Tractor Supply Garden/Agricultural Supplies Valley Pacific Petroleum Petroleum Products Village Sport & Cycle Sporting Goods/Bike Stores Village Sport & Cycle Sporting Goods/Bike Stores Walgreens Drug Stores Walgreens Drug Stores
Wyckoff Plumbing Plumbing/Electrical Services Wyckoff Plumbing Plumbing/Electrical Services

65.39% 64.89%
Period: January 2015 Thru December 2015 Period: January 2024 Thru December 2024 Notes and Data Sources:

HdL, Coren & Cone, California State Board of Equalization Percent of Calendar Year Total
Paid By Top 25 Accounts
Percent of Calendar Year Total
Paid By Top 25 Accounts
2015 2024
Schedule 8-B
City of Fortuna
Top 25 Sales Tax Producers
Comparison with
(In Alphabetical Order)
- 75 -
Revenue Base City Revenue
Fiscal Room Revenues Direct Recognized
Year Subject to Tax Tax Rate By the City
2016 $ 6,106,268 10.00% 610,627
2017 $ 6,821,250 10.00% 682,125
2018 $ 6,959,210 10.00% 695,921
2019 $ 6,129,930 10.00% 612,993
2020 $ 5,492,180 10.00% 549,218
2021 $ 7,551,250 10.00% 755,125
2022 $ 9,510,390 10.00% 951,039
2023 $ 7,828,080 10.00% 782,808
2024 $ 7,224,470 10.00% 722,447
2025 $ 7,101,190 10.00% 710,119
Notes and Data Sources:

Transient Occupancy Tax ("TOT") adoption requires a majority approval of voters.

Any subsequent changes to the established TOT rate requires a 2/3 voter approval.

Schedule 8-C
City of Fortuna
Transient Occupancy Tax Revenue Base Data
Ten Year Review
- 76 -
2021 2022 2023 2024 2025
Best Western Country Inn Best Western Country Inn Best Western Country Inn Best Western Country Inn Best Western Country Inn Comfort Inn & Suites Comfort Inn & Suites Comfort Inn & Suites Comfort Inn & Suites Comfort Inn & Suites Humboldt Redwood Inn Humboldt Redwood Inn Humboldt Redwood Inn Humboldt Redwood Inn Humboldt Redwood Inn Redwood Riverwalk Hotel Redwood Riverwalk Hotel Redwood Riverwalk Hotel Redwood Riverwalk Hotel Redwood Riverwalk Hotel Riverwalk RV Park Riverwalk RV Park Riverwalk RV Park Riverwalk RV Park Riverwalk RV Park Six Rivers Motel Six Rivers Motel Six Rivers Motel Six Rivers Motel Six Rivers Motel Super 8 Motel Super 8 Motel Super 8 Motel Super 8 Motel Super 8 Motel Travel Inn Travel Inn Travel Inn Travel Inn Travel Inn
2016 2017 2018 2019 2020
Best Western Country Inn Best Western Country Inn Best Western Country Inn Best Western Country Inn Best Western Country Inn Comfort Inn & Suites Comfort Inn & Suites Comfort Inn & Suites Comfort Inn & Suites Comfort Inn & Suites Humboldt Redwood Inn Humboldt Redwood Inn Humboldt Redwood Inn Humboldt Redwood Inn Humboldt Redwood Inn Redwood Riverwalk Hotel Redwood Riverwalk Hotel Redwood Riverwalk Hotel Redwood Riverwalk Hotel Redwood Riverwalk Hotel Riverwalk RV Park Riverwalk RV Park Riverwalk RV Park Riverwalk RV Park Riverwalk RV Park Six Rivers Motel Six Rivers Motel Six Rivers Motel Six Rivers Motel Six Rivers Motel Super 8 Motel Super 8 Motel Super 8 Motel Super 8 Motel Super 8 Motel Travel Inn Travel Inn Travel Inn Travel Inn Travel Inn
Notes and Data Sources:

City Data
Fiscal Years Ending June 30
Schedule 8-D
City of Fortuna
Principal Transient Occupancy Tax Payers
Ten Year Review
(In Alphabetical Order)
- 77 -
Monthly Rate Monthly Rate
Fiscal Base Per 100 Base Per 100
Year Rate Cubic Feet Rate Cubic Feet
2016 23.04 1.90 38.75 8.61
2017 23.04 1.90 38.75 8.61
2018 23.04 1.90 38.75 8.61
2019 23.04 1.90 38.75 8.61
2020 23.04 1.90 38.75 8.61
2021 23.04 1.90 38.75 8.61
2022 23.04 1.90 38.75 8.61
2023 23.04 1.90 38.75 8.61
2024 23.04 1.90 38.75 8.61
2025 27.65 2.28 50.38 11.19
Notes and Data Sources:

City of Fortuna Fee Schedule
Schedule 8-E
City of Fortuna
Water and Sewer Rates
Last Ten Fiscal Years
Water Sewer
- 78 -
Fiscal Revenue # of Revenue # of Revenue # of
Year In Dollars Connections In Dollars Connections In Dollars Connections 2016 $ 1,506,778 5016 $ 742,145 551 $ 2,248,923 5567
2017 $ 1,514,301 5025 $ 762,843 554 $ 2,277,144 5579
2018 $ 1,547,679 5077 $ 783,156 554 $ 2,330,835 5631
2019 $ 1,577,636 5141 $ 781,898 554 $ 2,359,534 5695
2020 $ 1,640,307 5155 $ 795,649 557 $ 2,435,956 5712
2021 $ 1,636,317 5181 $ 788,066 557 $ 2,424,383 5738
2022 $ 1,570,849 5231 $ 796,468 558 $ 2,367,317 5789
2023 $ 1,757,729 5256 $ 718,368 554 $ 2,476,097 5810
2024 $ 1,853,196 5265 $ 705,083 557 $ 2,558,279 5822
2025 $ 1,757,729 5266 $ 718,368 558 $ 2,476,097 5824
Wastewater Revenue Concentration Data
Residential Non-Residential Totals
Fiscal Revenue # of Revenue # of Revenue # of
Year In Dollars Connections In Dollars Connections In Dollars Connections 2016 $ 2,588,628 4764 $ 826,449 499 $ 3,415,077 5263
2017 $ 2,609,255 4771 $ 842,141 501 $ 3,451,396 5272
2018 $ 2,651,219 4806 $ 855,685 503 $ 3,506,904 5309
2019 $ 2,676,609 4870 $ 858,663 504 $ 3,535,272 5374
2020 $ 2,659,708 4885 $ 847,436 507 $ 3,507,144 5392
2021 $ 2,640,931 4907 $ 851,112 508 $ 3,492,043 5415
2022 $ 2,668,383 4957 $ 864,674 509 $ 3,533,057 5466
2023 $ 2,728,186 4979 $ 883,196 508 $ 3,611,382 5487
2024 $ 2,797,558 4988 $ 928,404 511 $ 3,725,962 5499
2025 $ 2,728,186 4989 $ 883,196 512 $ 3,611,382 5501
Residential Non-Residential Totals
Water Revenue Concentration Data
Schedule 8-F
City of Fortuna
Water and Sewer Rates
Last Ten Fiscal Years
- 79 -
Total
City Debt as Total
General Capital Total Percentage of City Debt Per Capita Fiscal Obligation Redevelopment Lease Revenue City Personal Per Personal Year Bonds Bonds Obligations Loans Bonds Debt Income Capita Population Income 2016 2,515 12,425 - - 18,310 33,250 12.96% $ 2,806 11,848 21,654 2017 2,260 12,240 - - 17,760 32,260 13.25% $ 2,691 11,989 20,302 2018 - 8,635 - - 14,145 22,780 9.27% $ 1,892 12,042 20,406 2019 - 8,450 - - 13,550 22,000 8.61% $ 1,821 12,084 21,149 2020 - 8,220 - - 13,040 21,260 7.90% $ 1,754 12,123 22,207 2021 - 7,970 - - 12,520 20,490 6.80% $ 1,718 11,926 25,257 2022 - 7,705 - - 11,970 19,675 6.34% $ 1,583 12,432 24,958 2023 - 7,425 - - 11,400 18,825 4.94% $ 1,536 12,256 31,117 2024 - 7,130 - - 10,810 17,940 4.40% $ 1,473 12,181 33,467 2025 - 6,835 - - 10,195 17,030 4.00% $ 1,396 12,198 34,882 Notes and Data Sources:

Population: California State Department of Finance, Unemployment data: California Development Department Income, Age and Education Date-US Census Bureau, most recent American Community Survey Source: Hdl, Coren & Cone
Government Activities Business-type Activities
Schedule 9
City of Fortuna
Ratios of Outstanding Debt By Type
Ten Year Review
(Dollars in Thousands except for Per Capita)
- 80 -
Percentage of
General Tax Actual Taxable
Fiscal Obligation Revenue Allocation Value of Per
Year Bonds Bonds Bonds Total Property Capita
2016 2,515 12,425 - 14,940 1.61% 1,261
2017 2,260 12,240 - 14,500 1.51% 1,209
2018 - 8,635 - 8,635 0.88% 717
2019 - 8,450 - 8,450 0.82% 699
2020 - 8,220 - 8,220 0.75% 678
2021 - 7,970 - 7,970 0.69% 668
2022 - 7,705 - 7,705 0.65% 620
2023 - 7,425 - 7,425 0.59% 606
2024 - 7,130 - 7,130 0.53% 585
2025 - 6,835 - 6,835 0.48% 560
Notes and Data Sources:

See schedule 5 for total assessed values of property.

General Bonded Debt Outstanding
(Dollars in Thousands except for Per Capita)
Schedule 10
City of Fortuna
Ratios of General Bonded Debt Outstanding
Ten Year Analysis
- 81 -
2024-25 Assessed Property Valuation: $ 1,417,702,299
City of Fortuna
Total Debt Applicable Share of Debt
Overlapping Tax and Assessment Debt 6/30/2025 Percentage 6/30/2025 Redwoods Joint Community College District $ 95,290,000 5.8% $ 5,501,092 Fortuna Union High School District 9,171,287 49.4% 4,526,489 Fortuna Elementary School District 16,425,473 83.0% 13,639,056 $ 120,886,760 $ 23,666,637
Direct and Overlapping General Fund Debt
Humboldt County General Fund Obligations $ 1,225,000 8.1% $ 99,299 Humboldt County Board of Education COP 5,558,221 8.1% 450,549 Redwoods Joint Community College District General Fund Obligation 7,285,000 5.8% 420,563 Total Direct and Overlapping General Fund Debt: $ 14,068,221 $ 970,411 Overlapping Tax Increment Debt (Successor Agency): $ 6,835,000 100% $ 6,835,000 Total Direct Debt: $ - $ -
Total Overlapping Debt: 141,789,981 31,472,048
Combined Total Debt: $ 141,789,981 $ 31,472,048
Ratios to 2024-25 Assessed Valuation:

Total Overlapping Tax and Assessment Debt…………………..1.670% Total Direct Debt ……...…………………………………….0.000%
Combined Total Debt……………………………………………………………………. 2.220%
Ratios to Redevelopment Incremental Valuation:

Total Overlapping Tax Increment Debt…………………………2.09%
Notes and Data Sources:
a. The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.

Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. b. Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue bonds and non-bonded capital lease obligations.

Source: Avenu Insights & Analytics; California Municipal Statistics, Inc.

Total Overlapping tax and Assessment Debt:

Schedule 11
Direct and Overlapping Governmental Activities Debt
As of June 30, 2025

CITY OF FORTUNA
- 82 -
Total Debt
Applicable
Total Debt To Limit as
Fiscal Debt Applicable Percentage
Year Limit To Limit of Debt Limit
2016 $ 139,111,800 - 0%
2017 $ 143,955,750 - 0%
2018 $ 147,787,650 - 0%
2019 $ 154,341,900 - 0%
2020 $ 165,257,550 - 0%
2021 $ 172,404,150 - 0%
2022 $ 178,347,300 - 0%
2023 $ 190,317,000 - 0%
2024 $ 202,487,250 - 0%
2025 $ 212,602,950 - 0%
Assessed value $ 1,417,353
Debt limit (15% of assessed value) 212,603
Less debt applicable to limit:

General obligation bonds -
Total debt applicable to limit -
Legal debt margin $ 212,603
Notes and Data Sources:

California finance law states that the city's outstanding general obligation bonded debt should not exceed 15 percent of total assessed property value.

Source of Assessed Taxable Values: HdL, Coren and Cone, Schedule 12
City of Fortuna
Legal Debt Margin Information
Ten Year Review
Legal Debt Margin Calculation for Fiscal Year 2025
- 83 -
Water Capital Less Net
Service Impact Other Operating Available
Year Revenues Fees Revenues Expenses Revenue Principal Interest *Ratio 2016 2,402,085 64,231 - 1,414,885 1,051,431 200,000 328,798 1.99 2017 2,319,601 110,734 - 1,417,440 1,012,895 210,000 319,548 1.91 2018 2,493,979 127,259 311,576 2,020,616 912,198 220,000 251,799 1.93 2019 2,296,469 97,887 974,166 2,559,467 809,055 225,000 206,750 1.87 2020 2,358,114 40,615 646,428 2,137,358 907,799 195,000 202,700 2.28 2021 2,417,383 86,956 487,773 2,288,834 703,278 200,000 195,725 1.78 2022 2,399,828 69,800 1,035,294 2,617,977 886,945 210,000 187,425 2.23 2023 2,480,469 56,810 1,549,025 2,753,190 1,333,114 220,000 178,725 3.34 2024 2,525,804 32,475 1,486,345 2,995,777 1,048,847 225,000 168,088 2.67 2025 2,501,469 56,810 1,549,025 2,753,190 1,354,114 240,000 156,275 3.42 Wastewater Capital Less Net
Service Impact Other Operating Available
Year Revenues Fees Revenues Expenses Revenue Principal Interest *Ratio 2016 3,526,664 157,956 - 2,045,983 1,638,637 325,000 536,073 1.90 2017 3,513,379 190,818 - 2,096,401 1,607,796 340,000 521,073 1.87 2018 3,785,399 238,579 453,208 2,700,738 1,776,448 355,000 439,470 2.24 2019 3,463,124 182,880 1,136,566 2,862,388 1,920,182 370,000 386,269 2.54 2020 3,400,290 112,088 1,119,387 3,105,133 1,526,632 315,000 379,694 2.20 2021 3,482,858 234,343 1,274,474 3,595,910 1,395,765 320,000 368,519 2.03 2022 3,592,984 195,739 826,623 3,053,114 1,562,232 340,000 355,119 2.25 2023 3,516,702 145,270 938,829 3,327,376 1,273,425 350,000 341,219 1.84 2024 3,604,994 120,968 1,857,749 4,024,694 1,559,017 365,000 326,281 2.26 2025 3,516,702 145,270 938,829 3,327,376 1,273,425 375,000 308,406 1.86 RPTTF
Year Revenue Principal Interest *Ratio
2016 778,067 150,000 473,099 1.25
2017 980,149 165,000 465,246 1.56
2018 1,092,080 185,000 422,369 1.80
2019 1,118,426 185,000 284,663 2.38
2020 722,031 230,000 277,283 1.42
2021 980,158 250,000 270,188 1.88
2022 850,606 265,000 265,038 1.60
2023 1,053,438 280,000 258,888 1.95
2024 1,013,698 295,000 251,700 1.85
2025 1,084,685 295,000 240,638 2.03
Notes and Data Sources:
a. *Ratio is determined by dividing Net Available Revenue by total payment (principle and interest) b. Minimum Debt Ratio Requirement is 1.25
c. Water & Wastewater revenues include operating revenues, interest revenues, and capital impact fees. d. Operating expenses exclude depreciation and amortization *The Successor Agency to the former Redevelopment Agency receives tax increment revenues only in the amount necessary to pay enforceable obligations. Any surplus tax is then redistributed to the taxing agencies.

Debt Service
Debt Service
Debt Service
Schedule 13
City of Fortuna
Pledged Revenue Coverage
Ten Year Review
Successor Agency Revenue Bonds*
Water Revenue Bonds
Wastewater Revenue Bonds
- 84 -
3 Per Capita 2 3
Fiscal 1 Personal Personal Unemployment Median
Year Population Income Income Rate Age
2016 11,848 256,553,000 $ 21,654 5.6% 38.1
2017 11,989 243,406,000 $ 20,302 4.9% 39.2
2018 12,042 245,724,000 $ 20,406 3.9% 39.4
2019 12,084 255,561,000 $ 21,149 4.2% 39.9
2020 12,123 269,218,000 $ 22,207 3.1% 39.9
2021 11,926 301,213,000 $ 25,257 7.9% 40.8
2022 12,432 310,275,000 $ 24,958 4.2% 40.3
2023 12,256 381,374,000 $ 31,117 3.0% 40.2
2024 12,181 407,667,000 $ 33,467 3.5% 37.5
2025 12,198 425,496,000 $ 34,882 3.5% 36.7
Notes and Data Sources:

Population for 2015 provided by State Department of Finance 1 Source: California State Department of Finance
2 Source: California Employment Development Department
3 Source: US Census Bureau, most recent American Community Survey Source: HdL, Coren & Cone
Schedule 14
City of Fortuna
Demographic and Economic Statistics
Ten Year Review
- 85 -
FYE 2025 FYE 2020
City of Fortuna City of Fortuna
Eel River Brewery Eel River Brewery
Emeitus Senior Living Eel River Disposal
Fortuna Rehab and Wellness Emeitus Senior Living
Fortuna Union Elementary School District Fortuna Rehab and Wellness Fortuna Union High School District Fortuna Union Elementary School District Ray's Food Place Fortuna Union High School District
Recology Eel River Ray's Food Place
Redwood Memorial Hospital Redwood Memorial Hospital
Safeway Safeway
FYE 2024 FYE 2019
City of Fortuna City of Fortuna
Eel River Brewery Eel River Brewery
Emeitus Senior Living Eel River Disposal
Fortuna Rehab and Wellness Emeitus Senior Living
Fortuna Union Elementary School District Fortuna Rehab and Wellness Fortuna Union High School District Fortuna Union Elementary School District Ray's Food Place Fortuna Union High School District
Recology Eel River Ray's Food Place
Redwood Memorial Hospital Redwood Memorial Hospital
Safeway Safeway
FYE 2023 FYE 2018
City of Fortuna City of Fortuna
Eel River Brewery Eel River Brewery
Emeitus Senior Living Eel River Disposal
Fortuna Rehab and Wellness Emeitus Senior Living
Fortuna Union Elementary School District Fortuna Rehab and Wellness Fortuna Union High School District Fortuna Union Elementary School District Ray's Food Place Fortuna Union High School District
Recology Eel River Ray's Food Place
Redwood Memorial Hospital Redwood Memorial Hospital
Safeway Safeway
FYE 2022 FYE 2017
City of Fortuna City of Fortuna
Eel River Brewery Eel River Brewery
Emeitus Senior Living Eel River Disposal
Fortuna Rehab and Wellness Emeitus Senior Living
Fortuna Union Elementary School District Fortuna Rehab and Wellness Fortuna Union High School District Fortuna Union Elementary School District Ray's Food Place Fortuna Union High School District
Recology Eel River Ray's Food Place
Redwood Memorial Hospital Redwood Memorial Hospital
Safeway Safeway
FYE 2021 FYE 2016
City of Fortuna City of Fortuna
Eel River Brewery Eel River Brewery
Eel River Disposal Eel River Disposal
Emeitus Senior Living Emeitus Senior Living
Fortuna Rehab and Wellness Fortuna Rehab and Wellness
Fortuna Union Elementary School District Fortuna Union Elementary School District Fortuna Union High School District Fortuna Union High School District Ray's Food Place Ray's Food Place
Redwood Memorial Hospital Redwood Memorial Hospital
Safeway Safeway
Schedule 15
City of Fortuna
Principal Employers (Ten Largest)
(In Alphabetical Order)
- 86 -
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program:

General government:

City Manager 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Finance 4.00 4.00 4.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Police 24.00 23.00 28.00 28.00 27.00 26.00 26.00 27.00 27.00 27.00 Community Development 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Public Works 30.00 30.00 31.00 31.00 31.00 30.00 28.00 29.00 29.00 30.00 Parks and Recreation 6.00 6.00 9.00 9.00 8.00 8.00 8.00 9.00 9.00 9.00 River Lodge Conference Center 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Transit 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Totals 74.00 73.00 82.00 83.00 81.00 79.00 77.00 80.00 80.00 81.00 Schedule 16
City of Fortuna
Full-Time Equivalent City Government Employees by Function/Program Ten Year Analysis
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Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Police:

Physical arrest 963 1039 1098 1134 751 887 686 756 745 674 Traffic violations 267 351 563 724 250 412 199 378 472 282 Planning:

Building permits issued 354 367 387 333 341 353 333 325 363 272 Public works:

Street lane miles resurfaced 1.60 1.60 0.25 1.25 2.05 0.50 1.77 0.36 0.67 0.98 Riverlodge/Monday Club:

Community Events (2) 347 335 326 346 253 57 303 336 186 158 Parks and Recreation:

Recreation Program
Admissions (1) 6,549 6,937 6,694 6,051 3,126 541 11,457 10,432 10,000 10,000 Water:

Number new connections 5 12 52 64 17 26 51 21 12 2
Daily average water
production in MGD 1.10 1.10 1.08 1.08 1.20 1.25 1.09 0.95 0.95 0.95 Daily average water
consumption in MGD 0.91 0.92 0.93 0.93 0.94 1.00 0.92 0.90 0.90 0.90 Wastewater:

Number new connections 15 9 37 65 18 23 51 21 12 2
Daily average treatment
in millions gallons(MGD) 1.03 1.60 1.42 1.42 1.15 1.14 1.05 1.13 1.13 1.13 (2) Includes just the Riverlodge starting in FY 2023-24 Schedule 17
City of Fortuna
Operating Indicators by Function/Program
Ten Year Analysis
(1) Recreation Program Admissions are calculated based on the number of people signed up for Recreation Programs. FYE 2024 and 2025 are estimated due to staff turnover.
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Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Police:

Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 15 15 15 15 15 15 15 15 15 15
Public Works:

Miles of streets 54 54 54 54 54 54 54 54 54 54
Streetlights 523 523 523 523 523 523 523 523 523 523
Traffic signals 5 5 5 5 5 5 5 5 5 5
Riverlodge/Monday Club
Community centers 2 2 2 2 2 2 2 2 2 2
Parks and Recreation:

Parks 2 2 2 2 2 2 2 2 2 2
Park acreage 85 85 85 85 85 85 93 93 93 93
Skate Pavilion 1 1 1 1 1 1 1 1 1 1
Museum 1 1 1 1 1 1 1 1 1 1
Water:

Number connections 5,567 5,579 5,631 5,695 5,712 5,738 5,789 5,810 5,822 5,824 Maximum plant capacity
in millions gallons 3.10 3.10 3.10 3.10 3.10 3.10 3.10 3.10 3.10 3.10 Wastewater:

Miles of sewers 42 42 42 42 42 42 42 42 42 42
Number connections 5,263 5,272 5,309 5,374 5,392 5,415 5,466 5,487 5,499 5,501 Maximum plant capacity
in millions gallons 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 Schedule 18
City of Fortuna
Capital Asset Statistics by Function/Program
Ten Year Analysis
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