Fortuna council hears budget shortfall, forms ad hoc committee to study revenue options

Fortuna City Manager Amy Nelson told the Fortuna City Council on April 21 that the city faces constrained revenue growth and rising costs, leaving a projected gap of about $235,000, or roughly 3 percent, in the general fund for fiscal year 2025–26.

"Fortuna is experiencing limited revenue growth and rising costs," Nelson said. "Expenses are outpacing revenue by 235,000 or 3%." She told the council estimated general fund expenses for FY 2025–26 are about $8.3 million and noted an estimated $31,500 decrease in sales tax revenue.

The shortfall, Nelson said, has limited the city's ability to invest in services such as public safety and to offer cost-of-living pay increases; the city has instead relied on one-time stipends and other temporary measures. She described recruitment and retention challenges across multiple job classes, including police officers, sergeants and licensed positions in building inspection and building official roles. "Recruitment and retention of talented public sector staff remains a critical need and a challenge for the…