Business Item 5d
STAFF REPORT
City Council Business Item
DATE: April 7, 2025
TO: Honorable Mayor and Council Members
FROM: Amy Nilsen, City Manager
SUBJECT: Declare Council’s Intent to Levy the Fortuna Business Improvement District’s Assessment for Fiscal Year 2025-26, Resolution 2025-07
STAFF RECOMMENDATION:
Staff recommends that the Council discuss and consider adopting Resolution 2025-07 declaring the Council’s intention to levy the Fortuna Business Improvement District (FBID) assessment for Fiscal Year (FY) 2025-26 and setting a public hearing thereon for April 21, 2025.
EXECUTIVE SUMMARY
On March 3, 2025 the City Council approved the FBID Annual Report (Report) for FY 2024-25 as presented. Since no assessment was levied in FY 2024-25, the Report contained a recommendation to levy a simplified flat assessment of $25.00 per business for FY 2025-26. There are approximately 660 businesses in Fortuna and a flat $25.00 assessment would generate an estimated $16,500.
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 approved on March 3, 2025.
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 April 21, 2025, 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.
(Boundary change is not proposed, however, the dissolution of the benefit zones for a citywide benefit zone is proposed, the resolution does not propose any overall boundary modification for this fiscal year.)
Business Item 5d
(2) Declare the intention of the city council to levy and collect assessment within the parking and business improvement area for the fiscal year stated in the resolution. (A modification to the assessment amount is proposed for this fiscal year from no assessment to a flat assessment of $25.00 per business.) (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 April 21, 2025, which is the date of the second regular meeting in April.)
(7) State that at the public hearing written and oral protests may be made.
Staff recommends that the Council adopt the Resolution to declare its intention to levy the flat $25.00 assessment for FY 2025-26 and setting a public hearing thereon.
FINANCIAL IMPACT:
An FBID assessment of $25.00 per business would generate approximately $16,500 annually.
No assessment was levied for FY 2024-25. The total expenditures for Fiscal Year 2024-2025 yearto-date are $16,523.65. The FBID fund has a current balance of $39,750 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.
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 2025-07 and read by title only. Roll Call vote.
Business Item 5d
ATTACHMENTS:
• Resolution 2025-07, A Resolution Of The City Council Of The City Of Fortuna Declaring Its Intention To Levy An Annual Assessment For 2025-2026 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