Business Agenda Item 5i
STAFF REPORT
City Council Business Agenda Item
DATE: June 6, 2022
TO: Honorable Mayor and Council Members
FROM: Merritt Perry, City Manager
SUBJECT: Declare Council’s Intent to Levy the Fortuna Business Improvement District’s Assessment for Fiscal Year 2022-23, Resolution 2022-22
STAFF RECOMMENDATION:
Staff recommends that the Council discuss and consider adopting Resolution 2022- 22 declaring the Council’s intention to levy the Fortuna Business Improvement District (FBID) assessment for the 2022-2023 fiscal year.
EXECUTIVE SUMMARY
The Fortuna Business Improvement District was established in 1990 under the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code §§ 36500 et seq.) Under this law, the Council is required to adopt an annual resolution of intent for each fiscal year in which it levies the assessment.
The resolution of intent must be adopted after the Council reviews and approves the FBID Annual Report, which the Council will consider and approve during this meeting.
The resolution of intent is the first procedural step required to levy the annual assessment. The resolution of intent provides notice of a public hearing to occur on June 21, 2022, at which time business owners may submit written protests, as more particularly set forth in the resolution.
Pursuant to Section 36534 of the Streets and Highways Code, the annual resolution of intention must do all of the following:
(1) Declare the intention of the city council to change the boundaries of the parking and business improvement area, or in any benefit zone within the area, if the annual report proposes a change.
(No such change was proposed and, therefore, the resolution does not propose any boundary modification for this fiscal year.)
(2) Declare the intention of the city council to levy and collect assessments within the parking and business improvement area for the fiscal year stated in the resolution.
Business Agenda Item 5i
(No modification to the existing assessment amount is proposed for this fiscal year.)
(3) Generally describe the proposed improvements and activities authorized by the ordinance enacted pursuant to Section 36527 and any substantial changes proposed to be made to the improvements and activities.
(4) Refer to the parking and business improvement area by name and indicate the location of the area.
(5) Refer to the report on file with the clerk for a full and detailed description of the improvements and activities to be provided for that fiscal year, the boundaries of the area and any benefit zones within the area, and the proposed assessments to be levied upon the businesses within the area for that fiscal year. (6) Fix a time and place for a public hearing to be held by the city council on the levy of the proposed assessment for that fiscal year. The public hearing shall be held not less than 10 days after the adoption of the resolution of intention. (The public hearing is noticed for June 21, 2022, which is the date of the next regular meeting.)
(7) State that at the public hearing written and oral protests may be made.
Staff recommends that the Council adopt the Resolution to continue levying the assessment at the same rate as the last fiscal year.
FINANCIAL IMPACT:
FBID collects approximately $62,000 in assessments annually and the city contributes an equal amount for an approximate total $124,000 annually. Of that amount, the core areas receive approximately the following amounts:
Core Area Assessment Distribution to Core
Area (62%)
Citywide Share
(38%)
Citywide $34,500 0 $34,500
Downtown $13,000 $8,060 $4,940
Redwood Village $9,000 $5,580 $3,420
Strongs Creek $5,000 $3,100 $1,900
Total $61,500 $16,740 $44,760
If the Council adopts the resolution, there would be no fiscal impact from the prior years, as the assessment would be maintained at existing rates.
If the Council does not adopt the resolution, the annual assessment would not be authorized, resulting in the loss of the assessment revenue in the estimated amount of $62,000.
Business Agenda Item 5i
RECOMMENDED COUNCIL ACTION:
1. Receive staff presentation and review Council questions with staff
2. Open Public Comment
3. Close Public Comment
4. Motion to adopt Resolution 2022-22, and read by title only. Roll Call vote.
ATTACHMENTS:
Resolution 2022-22, A Resolution Of The City Council Of The City Of Fortuna Declaring Its Intention To Levy An Annual Assessment For 2022-2023 Fiscal Year For The Fortuna Business Improvement District And Fixing The Time And Place Of A Public Meeting And A Public Hearing Thereon And Giving Notice Thereof