The Fortuna City Council voted Dec. 1 to authorize the city manager to execute a supplemental budget request for a $1,500,000 discretionary payment to the CalPERS pension trust and to waive the city’s 180‑day operating reserve policy for fiscal year 2025–26.

A staff presenter told the council the payment would be taken from general fund reserves and would reduce the city’s pension liability. "The $1,500,000 will be required to take out of from general fund reserves," the presenter said, and estimated the additional payment would produce roughly $1,250,000 in interest‑payment savings and about $130,000 in annual savings beginning in the next fiscal year.

Council members asked whether the payment would drop the city below its reserve target and whether that dip would occur before or after funds set aside for the general plan update were spent. Staff said the city had reserved about $1,000,000 for the general plan update and that the payment was proposed now because that set‑aside already exists.

Council member Diaz moved to authorize the payment and waive the reserve policy; the motion was seconded and approved by voice vote with no recorded opposition.

The council did not adopt any additional conditions in the motion; staff will implement the supplemental budget request and report back as appropriate.