FBID Annual Report 2024/2025
DRAFT FBID ANNUAL REPORT - 2024/2025
FBID Annual Report 2024/2025
1. Proposed Changes in the Boundaries of FBID or in any Benefit Zones There are no proposed changes to the boundaries during Fiscal Year 2024-25. However, there are recommended changes for Fiscal Year 2025-26 to dissolve the core areas (Downtown, Redwood Village, Strongs Creek) in favor of one overall citywide benefit zone.
2. Improvements and Activities to be Provided
Calendar Year 2024
March
• Approved $360 in a one-time expense for Downtown Merchants for annual rent of a storage unit.
May
• City Council voted to not levy an assessment for FBID for Fiscal Year 2024-25.
June
• Approved $1,001 for the Fortuna Fireworks and 3rd of July Festival • Approved $7,500 for the Fortuna Downtown Business Association.
October
• Created an Ad Hoc Committee with members Chris Mobley and Fred Robinson to work with City Manager on FBID By-Laws and to consider a flat assessment. • Approved $2,500 for the Al Gray Lighted parade.
• Staff deleted FBID social media accounts and Adopt-a-Block signs were removed.
3. Estimate of the Cost of Providing the Improvements and the Activities The amount collected through the assessments of Fortuna businesses for FY 24-25 was suspended for the fiscal year.
FBID Annual Report 2024/2025
Adopted Budget for Fiscal Year 2024-25 by Fortuna City Council:
FBID Detailed Budget for Fiscal Year 2024-25
Annual
REVENUE
FBID Assessments
Citywide $0.00
Total Revenue $0.00
EXPENSES
Office
Cell Phone Service $500.00
Financial Services
Audit $1,000.00
Professional Services
Attorney $1,000.00
Marketing & Promotion
Core Area Disbursements $7,500.00
Special Events/Functions
Lighted Parade $3,000.00
FBID Annual Report 2024/2025
Kids Free Movies $2,000.00
Shop Fortuna for the Holidays $1,000.00
LipSync or Music Event $2,000.00
Banners $4,000.00
Total Expenses $22,000.00
Net Annual Surplus/(Deficit) $(22,000.00)
Actual Financials (Year to date) 2024-2025
YTD
INCOME
FBID Assessments
Citywide $0.00
Total Revenue $0.00
EXPENSES
Office
Cell Phone Service $315.51
Marketing & Promotion
Core Area Disbursements –
Downtown Merchants
$7,500.00
Special Events/Functions
Lighted Parade $2,207.51
Kids Free Movies $0.00
Fireworks Festival Reimbursement $1,004.24
LipSync or Music Event $1,000.00
Apple Harvest $1,648.26
Banners $2,848.13
Total Expenses $16,523.65
Net Annual Surplus/(Deficit) $(16,523.65)
4. Method and Basis of Levying the Assessment in Sufficient Detail to Allow Each Business Owner to Estimate the Amount of the Assessment
The method of the assessment is consistent with the method specified within the Fortuna Municipal Code and is shown below. For Fiscal Year 2024-25 the assessment was suspended for the one year and not collected.
FBID Annual Report 2024/2025
5.40.030 Benefit assessment.
All businesses, trades and professions located within the boundaries shown on Exhibit A attached to the ordinance codified in this chapter and found on file in the office of the city clerk, shall, commencing July 1, 1990, pay a benefit assessment in addition to the city business license fee, in the amounts identified in Exhibit B as amended on March 18, 2002, and attached to the ordinance codified in this chapter and found on file in the office of the city clerk.
The benefit assessment shall be payable annually during each fiscal year, as provided in FMC 5.40.080. (Ord. 2002-636 § 2; Ord. 94-595 § 2; Ord. 90-550 § 1(B)).
5.40.080 Collection of benefit assessment.
The benefit assessment authorized by the ordinance codified in this chapter shall be billed by the city as of July 1st of each fiscal year and shall be paid within 30 days thereafter. Each billing shall represent 100 percent of the annual assessment. It shall be unlawful for any person to transact and carry on any business in the city without first having paid the required Fortuna business improvement district assessment. This obligation shall be enforced by the city, pursuant to the provisions of Chapter 1.08 FMC. (Ord. 2003-640 § 1; Ord. 2002-636 § 2; Ord. 90-550 § 2).
Exhibit A
FBID Annual Report 2024/2025
In addition, it is recommended the assessment for Fiscal Year 2025-26 be reinstated. However, instead of an assessment based on gross receipts it is recommended a flat assessment of $25.00 for all businesses within the City of Fortuna be assessed. There are approximately 660 businesses in Fortuna which would generate approximately $16,500 annually. This recommendation means the Fortuna Municipal Code will need to be amended to address the flat assessment of $25.00 and the removal of the core areas. The reinstatement of the benefit assessment as well as the amendments to the Fortuna Municipal Code will need to be approved by the City Council through a process designated by law.
It is also recommended to move to a tiered assessment in Fiscal Year 2026-27 when the City transitions to Invoice Cloud which would allow for a three-tiered assessment based on gross receipts. The process of moving to a tiered assessment would begin in early 2026.
5. Amount of Any Surplus or Deficit Revenues to be Carried Over from Previous Fiscal Year.
The amount of money generated by the FBID Assessment to be carried over from fiscal year 2023- 24 is approximately $17,750. It is anticipated that $0 revenue will be carried over from FY 2024- 25 as no assessment was charged. The FBID fund has a current balance of $39,750 from previous fiscal years with $6,350 reserved for funding in the Redwood Village Core Area and $3,150 reserved for funding in the Strongs Creek Core Area. This leaves $30,250 that can be spent with no Core Area restrictions. The previous FBID administrator left earlier than expected in FY 23- 24 and therefore there were salary savings which explains the higher than anticipated fund balance.
If any monies are remaining from previous fiscal years, the Fortuna business assessment funds will remain in the FBID account for the next fiscal year’s activities and expenditures. The assessment funds are to be used only for FBID budget, as they are not a tax and cannot be used for general City purposes.
6. Amount of any Contributions to be Made from Sources Other than Assessments Levied The events FBID hosts are open to collecting participation fees, such as booth fees for a marketplace event and entry fees to participate in the Al Gray Lighted Parade, to name a couple possible revenue building streams. These contributions from vendors assist with offsetting the cost of the event, but the amounts collected do not completely cover the cost of the event.