CITY OF FORTUNA
➢ Measure D
➢ Fortuna Essential Services Funding Measure
➢ Summer / Fall 2026
Why is the
City asking
voters to
consider
Measure D?
• City revenues have not kept pace with inflation and
rising costs.
• Sales tax and transient occupancy tax revenues have
declined by $483,000 since FY 2021-22, and are more
than $1.4 million below inflation-adjusted projections. • Liability insurance costs alone are projected to increase by more than $615,000 between FY 2021-22 and FY
2026-27.
• The City currently spends about $700,000 per year on
paving but has an estimated $2 million annual shortfall to properly maintain roads.
• The City has already included approximately $600,000, in reductions and cost-saving measures in the FY 2026-
27 budget.
• Further reductions could directly affect police, streets, parks, recreation, and other essential services.
Sales Tax: Fortuna is more than $1 million behind where revenues would be if they had kept pace.
3,750,000
4,000,000
4,250,000
4,500,000
4,750,000
5,000,000
5,250,000
FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Estimate
FY 2026-27
Estimate
Sales Tax (3% per year increase)
Sales Tax (actual inflation per year increase)
Actual Total City Sales Tax
Over
$1,000,000
Gap
Sales Tax and TOT Trends: the local revenue gap
Transient Occupancy Tax (TOT): Hotel tax revenue is roughly $400,000 below the inflation-adjusted trend.
Sales Tax and TOT Trends: the local revenue gap
400,000
600,000
800,000
1,000,000
1,200,000
FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Estimate
FY 2026-27
Estimate
TOT (3% per year increase) TOT (actual inflation per year increase) Actual TOT Revenue
Over
$400,000
Gap
Liability Insurance: Insurance costs have risen sharply, creating a gap of more than $500,000.
Rising Insurance and Inflationary Costs
400,000
600,000
800,000
1,000,000
1,200,000
FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Estimate
FY 2026-27
Estimate
Liability Insurance (3% per year increase)
Liability Insurance (actual inflation per year increase) Actual Liability Insurance Cost
Over
$500,000
Gap
What has
the City
done to
reduce
costs?
Already reduced or frozen:
• Street Maintenance Worker I Position - $57,300
• Part-time Community Services Officer Position -
$33,000
• Full-time Police Officer Position (will leave 2nd
Detective specialty position vacant) - $190,000
• Departments services and supplies reductions:
$75,000
• River Lodge staffing/transition savings: $180,000
• Eliminated business improvement budget: $20,000
• Museum Curator funding transition: $27,000
• Full-time Transit Supervisor position not
implemented: $70,000
These actions total approximately $600,000 in reductions and costsaving measures, in addition to use of reserves to balance the FY 2026-27 operating budget.
The City has taken steps to reduce costs first. Measure D is being considered because the remaining gap cannot be closed without direct impacts to the community.
What further reductions could look like
Cut 33% of Street
Maintenance/General
Services Staff, $187,500
Cut 25% of
Contracted Street
Paving Budget,
Cut 33% of
Police Patrol
Officers,
$480,000
Cut 33% of Park
Maintenance Staff,
$175,000
Cut 100% of Full-time
Recreation Staff,
$92,500
Positions that could be frozen/eliminated:
2 Police Officers
1 Dispatcher
1 Part-time Code Compliance Officer
3 Street Maintenance Workers
2 Park Maintenance Workers
1 Recreation Program Supervisor
9.5 Positions or approximately 10% of the City’s workforce What Fortuna voters told us
• A majority of Fortuna voters feel the City is generally going in the right direction:
61% right direction, 32% wrong track
• Two-thirds of voters rate the City’s overall job performance positively: 66% positive, 33% negative
• About two-thirds say the City has a need for more money for City services: 64% say there is a need, including 32% who say there is a great need • Voters’ top funding priorities include retaining and attracting small businesses, street repair, youth programs, public transit for seniors and people with disabilities, and public safety services
We listened, and we are taking action
The City has taken concrete steps before asking voters to consider additional local funding.
Community input Strategic focus Community partnership
Measure D supports the work already underway to strengthen Fortuna’s future.
Developed and approved a
new Strategic Plan for Fortuna
Aligned City priorities with
community-identified needs
Building progress measures
and accountability into
implementation
Completed community
listening sessions
Surveyed local businesses
Used public feedback to
identify economic priorities
Supported a community-led
working group focused on economic
priorities
City staff and Council are active
participants
Continuing collaboration with
residents and businesses
Engaging in collaborative
partnerships with regional
jurisdictions to foster regional
economic growth
Building Fortuna’s economic future
Measure D would help maintain essential services while the City continues work to strengthen the local economy.
Invest
Maintain essential services
Support local business
Strengthen accountability
Economic vision and brand
Advancing a clearer identity for Fortuna and its future.
Downtown revitalization
Creating a high-level action plan to guide structure, steps, and process for façade improvements and business loans.
Streamlined City services
Improving permitting and service processes to better support residents and businesses.
Preparing for economic future
Actively seeking resources, incentives and grants to attract and support new and existing businesses while engaging in collaborative partnerships to foster regional economic growth. Working to reduce development and redevelopment barriers by advancing critical infrastructure projects.
Community priorities reflected in Measure D
On May 4, the Fortuna City Council voted unanimously to place the tax measure on the ballot.
• Essential Services Supplemental Funding Measure - protecting public safety; increasing and restoring police officers; repairing aging/deteriorating streets and potholes; providing programs for seniors and youth; and keeping parks clean and safe.
• Measure D would authorize an additional ¾-cent transactions and use tax beginning April 1, 2027. Together with Measure E, the City rate would be 1.5 cents through March 31, 2033.
Local
Control and
Accountability
• Maintain locally controlled funding.
• The City of Fortuna prides itself on fiscal responsibility, and protecting your public safety, environment and quality of life.
• Measure D would provide a source of local funding to
maintain essential services that cannot be taken by the State.
63%
3%
10%
8%
16%
6.00%, State
of California
0.25%, County
Transportation
Funds
1.00%, City of
Fortuna
0.75%, City
of Fortuna
(Measure E)
1.50%, County of
Humboldt (Measure Z
and O)
What services
would Measure D
help maintain?
These essential services include:
• Playground / Parks safety improvements
• Park Maintenance
• Parks programming
• Summer Camps: Summer Fun and Rohner Ranges
(ages 4-12)
• Hot Shots Youth Basketball League (K-4
th grades)
• Community partnerships with other agencies
providing services (Fortuna Garden Club, Fortuna
Concert Series, Fortuna Kiwanis (Rodeo Pancake
Breakfast), Redwood Auto Expo
What services
would Measure D
help maintain?
These essential services include:
• Street maintenance
• Repair and maintenance of
deteriorating roads
• Storm drain maintenance
projects
• Paving projects
• Striping
What
essential
services will
Measure D
maintain?
These essential services include:
• Police services, enforcing laws that protect Fortuna
residents
• K9 Program, Special Needs Assistance Program
• Nuisance abatement
• Code Compliance Officer
• Illegal campsite identification, cleanup and
coordination
• Providing emergency communications for first
responders
• Recruitment and retention of police officers
• 911 emergency response times
• Emergency Calls for Service: 2min 48 sec
• Non-Emergency Calls for Service: 4 min 15 sec
What
essential
services will
Measure D
maintain?
What does Measure D cost?
• Measure D would increase an existing voter-approved ¾ cent sales tax by an additional ¾ cent, increasing City revenue by $1.8 million. • Taxable goods:
• $100 in taxable goods = 75 cents
• $1,000 in taxable goods = $7.50
• $10,000 in taxable goods = $75.00
What purchases are exempt?
• Measure D is not applied to prescription medicine or food purchased as groceries.
• Visitors to our city also pay the cost as well.
How would funds be accountable and locally
controlled?
Accountability:
• Annual financial audits, public disclosure, oversight, and local control • Measure E Independent Oversight Committee will continue to review Measure D funds to ensure they are spent efficiently on public priorities. • By law, all Measure D funding must be spent locally, and none can be taken by the State.
When is Measure D on the ballot and where can
residents learn more?
➢ Measure D is on the November 3, 2026 ballot
➢ To register to vote online and for more elections information, visit the Humboldt County Elections department at humboldtgov.org ➢ The City will continue to keep the community informed about Measure D ➢ For more information please call 725-7600