Fortuna council approves $37,500 for polling to test sales-tax options as budget gap grows

Fortuna — The Fortuna City Council voted 3-1 on June 3 to include $37,500 in the 2025–26 budget and to authorize staff to contract with polling firms to test voter support for possible sales-tax options, after staff presented figures showing limited revenue growth, rising costs and growing employee turnover.

City staff told the council the city’s estimated general fund revenue for the upcoming fiscal year is “a little over $8,000,000” while estimated general fund expenses are about $8,300,000, leaving a shortfall of roughly $235,000. Staff said turnover has accelerated; they estimated losing about 25 full‑time employees (roughly 30%) and 28 part‑time employees this fiscal year, a combined turnover near 50%.

The revenue-generation ad hoc committee, appointed by the council in April, recommended funding public-opinion research to determine whether Fortuna residents would support a new sales tax and, if so, what type. The staff report identified two broad options: a general sales tax (simple majority required) and a dedicated sales tax (two‑thirds voter approval required). The proposed polling contract names EMC Research and Team CivicX and would prepare the city to consider placing a measure on the November 2026 ballot.

“This is really important for understanding the community’s attitudes and preferences,” the staff presenter told the council, explaining that polling can show whether voters prefer a general tax or a tax dedicated to public safety or other services. The staff presentation detailed scenarios the ad hoc considered if the city chose to reallocate existing general‑fund dollars rather than seek new revenue. One scenario described a city‑wide 20% salary increase costing about $1 million (approximately $810,000 in salaries and $190,000 in benefits) and noted that funding such an increase through internal cuts would require eliminating services and laying off roughly 15.28 full‑time equivalents (about 18.9% of the workforce).

An alternate scenario that spread 20% cuts across departments would still require laying off an estimated 11.58 FTEs (about 14.3% of staff) and would include a 33% reduction to police patrol staff (three officer FTEs), an 83% reduction to recreation programs and cuts to parks and street maintenance. Staff warned that reducing police patrol staffing would reduce shift coverage, increase overtime, limit the department’s ability to investigate crimes and could force police to stop responding to non‑required medical aid calls.

Council members and public commenters debated the merits of polling versus spending the money directly on services. “I don’t see myself agreeing with spending $37,000 to get an opinion on the community when the community understands that the other option to cut essential services will be detrimental,” one council member said. Other council members, union representatives and a county supervisor urged the council to invest in polling to maximize the chance of passing a future ballot measure. Justin Freeman, representing the Fortuna Police Employees Association, said the association “fully support[s] the polling,” noting the cost of outreach and advertising if the city ultimately places a measure on the ballot.

Supervisor Bushnell (appearing remotely) told the council that recent successful regional measures benefited from polling and that selling a city asset would provide only one‑time revenue, not the sustained funding the city needs.

After discussion, a council member moved to approve the $37,500; the motion was seconded and carried on a 3‑1 voice vote. The motion authorized the city manager to execute a professional services agreement to fund public‑opinion research to gauge the feasibility of and inform a potential sales‑tax measure in November 2026.

Staff and members of the ad hoc committee said next steps will include working with the selected polling firm on survey questions and continuing to examine other revenue and cost options, including use of reserves or potential sale or repurposing of city assets such as the River Lodge. The council did not direct immediate layoffs or program eliminations; staff framed those as modeled options to illustrate the scale of cuts that would be necessary to fund across‑the‑board raises without new revenue.

The council’s decision to fund polling sets in motion community outreach and ballot‑language work in the coming year; the ad hoc committee remains active to develop potential revenue options and to coordinate with any polling contractor.