June 24, 2025
CITY OF POINT ARENA
451 School St. | PO Box 67 | Point Arena, CA 95468
(707) 882-2122 | pointarena.ca.gov
Honorable Members of the Point Arena City Council and Residents of Point Arena, City staff are pleased to present the Point Arena Fiscal Year 2025/26 Interim Budget, which represents projected revenues and expenditures to conduct day-to-day City operations. At this time, the Budget is interim because the FY 2024/25 revenues and expenditures do not include June, the last month of the fiscal year. Once the books are closed on the year, a final Budget for FY 2025/26 will be presented to the Council at a regularly scheduled meeting.
CONTINUING CHALLENGES
The Point Arena City Council and its community understands FY 2023/24 and FY 2024/25 presented serious financial challenges. In March 2024, the City had only $28,000 in its checking account- barely enough to make the next payroll. While the previous City Accountant recommended filing for bankruptcy, this was an untenable decision for the City Council to make, the City began deep cost-cutting measures including the following:
• Reduced Payroll by 50%
o In 2024, laid off or retired three field staff. In 2025, laid off an additional position. Total staffing has been reduced from 9 to 5 positions. o Reduced remaining staff hours by 20%, from 32 to 25 hours per week, including the Interim City Manager. Additionally, clerical support was reduced to 10 hours per week.
o Only essential expenditures – no travel, deferred capital maintenance, eliminated publications, memberships, and equipment purchases.
The City also approved new revenue sources:
• Sales Tax Increase: Projected to generate an additional $110,000 annually. • Indirect Administrative Fee of 15%: Apply indirect administrative costs to grants and other programs.
FUTURE WAYS TO ADDRESS BUDGET DEFICIT
City staff will also bring forward other initiatives over the next 12 months for further discussion and Council action, including:
• Fees - New and/or Adjustments for sewer, pier operations and new event fees. • Restructure Business License Tax
• Restructure or increase Transient Occupancy Tax
While all these measures have greatly reduced the City’s financial burden, we are not out of the woods yet. FY 2025/26 will be another lean year, and I ask for the community’s patience and understanding as we continue to navigate through difficult challenges.
NEW BUDGET ITEMS
The FY 2025/26 Budget continues to be very tight, but a few new activities are proposed. • Part-time Code Enforcement within Public Safety operations. • Complete the Windy Hollow road rehabilitation design.
Staff want to thank the City Council, and City residents, business owners, and community organizations who contributed their voices throughout the year. Together, we will rebuild the City that is more inclusive, equitable, and prepared for the challenges ahead. We encourage everyone to stay engaged and continue participating in shaping our future.
Sincerely,
Peggy Ducey