Consent Agenda Item 3d
STAFF REPORT
Consent Agenda Item
DATE: July 20, 2026
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Finance Monthly Report
STAFF RECOMMENDATION:
Receive report as an informational item.
EXECUTIVE SUMMARY:
Community Development Block Grant (CDBG) / HOME Investment Partnerships Program:
Staff have been working with the County to ensure our fiscal year end Annual Monitoring Reports for the Fortuna Family Apartments are completed and submitted to the State. This project was originally funded by a grant the City received through the HOME Investment Partnerships Program that is run by the California Department of Housing and Community Development (HCD). Each year the City is required to obtain a clearance letter from HCD which certifies the City is in compliance with all conditions placed upon the project at the time the grant funds were given to the City. Getting clearance from the State allows the City to stay in good standing with HCD and continue to be eligible for grant funds. We do not anticipate any issues with receiving clearance for fiscal year end 2025.
Fiscal Year 2025-26 Financial Statement Audit:
July 1 signaled the start of a new fiscal year for the City. As such, staff is working on closing the previous fiscal year and preparing for the City’s annual financial statement audit. The Cities auditor will be Michael O’Connor from O’Connor and Company. Michael performed last year’s audit for the City as well. Michael and his staff are planning to come on site for a week to conduct interim audit work during the month of September.
Finance staff will be preparing for this interim audit work by preparing the necessary reconciliations, reports, adjustments and backup information that is required during the audit process. Having these documents ready prior to the auditors’ arrival has provided for a smooth audit process in past years.
Measure E Update:
The Measure E committee’s next regularly scheduled meeting is set for October 14, 2026, at 5:30pm. The primary purpose of this meeting will be for Staff to review with the Committee the list of Measure E funded projects that were included in the Council Adopted Budget for fiscal year 2026-27.
Consent Agenda Item 3d
List of Measure E items funded this month:
• (2) Police Detective Positions
• Police Community Services Officer Position
• Police Records Clerk Position
• Parks and Recreation Director Position
• Recreation Program Supervisor Position
• Transit Trips to Eureka for Seniors
• PT Code Compliance Officer Position
• K-9 Program
• Encampment Outreach and Cleanup Services
• Storm Drain Maintenance Projects
• Street Maintenance Projects
An activity log displaying important Finance data is attached for informational purposes.
RECOMMENDED COUNCIL ACTION:
Receive Finance Monthly Report. Consent Agenda vote.
ATTACHMENTS:
• Finance Staff Activity Log for June 2026