STAFF REPORT
Business Agenda Item
DATE: March 16, 2026
TO: Honorable Mayor and City Council Members
FROM: Kaylyn Stainbrook, Parks & Recreation Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Approve a Memorandum of Understanding with Fortuna Union High School District for Shared Use of Facilities
STAFF RECOMMENDATION:
Receive staff presentation, approve the Memorandum of Understanding (MOU) between the City of Fortuna and the Fortuna Union High School District for shared use of facilities and authorize the City Manager to execute the MOU.
EXECUTIVE SUMMARY:
The proposed Memorandum of Understanding (MOU) between the City of Fortuna and the Fortuna Union High School District (FUHSD) supports continuity of a cooperative relationship for shared use of recreational and athletic facilities for community benefit. Traditionally, there has been no fee charged to either party for exchange of facility use.
However, this agreement proposes a change from the historical use of Shelton Field.
Historically, FUHSD utilized Shelton Field, located at the Dennis Wendt Sports Complex, Newburg Park. During their baseball season, February 1 through May 30, FUHSD’s staff maintained the field and landscaping that borders the field, dugouts, and concession stand.
In late 2025, FUHSD and City staff met several times to discuss the improvements needed to the Shelton Field. During one of the meetings, FUHSD Superintendent Clint Duey proposed that FUHSD could be willing to fund several of the improvements if the City were to lease the Shelton Field to FUHSD on a long-term, year-round basis for $1000 annually.
Staff urged that a $1000 annual payment would be a loss to the City in facility use revenue, and counter-proposed that FUHSD also pay the utility (water) bill for Shelton Field, which would increase the annual cost to FUHSD to $6493.84 (a 30% increase compared to Shelton Field revenue in 2025).
For the proposed agreement, FUHSD agrees to honor historical baseball use of the Shelton Field (American Legion and Humboldt Crabs Camp); However, FUHSD prefers to not have external Business Agenda Item 5b
soccer organizations using their outfield due to maintenance concerns. Instead, FUHSD intends to have their own soccer team utilize Shelton Field’s outfield, freeing up the regulation soccer field, Lesku Field, for other user groups to rent.
FISCAL IMPACT:
With the approval of this MOU between City of Fortuna and FUHSD, on an annual basis, the City will receive $1,000 for facility use of Shelton Field plus irrigation reimbursement annually (based on that year’s water rates).
For 2026, this would be an estimated revenue of $6493.84, which is $2,036.84 more than the $4,457 collected in year 2025.
Additionally, there would be savings in staff time for maintaining the property during FUHSD’s traditional “off-season”. Park Maintenance typically spends 13 staff hours per month on Shelton Field maintenance June through December (a cost of $3,000).
RECOMMENDED COUNCIL ACTION:
1. Receive staff report, presentation, and review Council questions with staff
2. Open Public Comment
3. Close Public Comment
4. Motion to approve and authorize the City Manager to execute an MOU between the City of Fortuna and the Fortuna Union High School District for shared use of facilities. Voice vote.
ALTERNATIVES TO STAFF RECOMMENDATION:
To not approve the Memorandum of Understanding with Fortuna Union High School District for Shared Use of Facilities, requiring parties to continue a seasonal-based agreement with no revenue generated and leaving needed improvements on a deferred maintenance list. This is not recommended.
ATTACHMENTS:
▪ Memorandum of Understanding with Fortuna Union High School District for Shared Use of Facilities
Memorandum of Understanding – Waiver of Facilities Use Fee(s) Fortuna High School District and the City of Fortuna
This is a Memorandum of Understanding (“Agreement”) between the Fortuna Union High School District (“School”) and the City of Fortuna (“City”).
Purpose
Compliant with the provisions of the Civic Center Act, this Agreement is to establish and maintain an effective working relationship between parties. In addition, each entity desires to accommodate facility needs for each in regard to community recreation and youth programs, beneficial to the community. To this end, the parties are interested in sharing facilities with one another on a waived fee basis.
Term
The term (“Term”) of this Agreement will be from February 1, 2026 to January 31, 2031.
Termination
This Agreement may be terminated by either party, with or without cause, upon thirty (30) days’ prior written notice to the other party. Notwithstanding the foregoing, the City may suspend or terminate this Agreement, in whole or in part, immediately upon written notice if the City determines that: (a) continued use presents a threat to public health or safety; (b) the facilities are needed for municipal operations, emergency response, repair, maintenance, or a City special event; (c) the School has failed to maintain required insurance or comply with applicable law; or (d) continued performance is no longer feasible due to field conditions, damage, or other operational necessity. Upon termination, neither party shall have any claim for consequential, incidental, or lost-profit damages arising from such termination. School’s sole remedy for any City termination under this Agreement shall be a refund of any prepaid, unused amounts, if any.
Process; Effect of Individual Facilities Use Agreements.
Each entity shall complete the standard facilities use agreement customarily required by the owning agency for each event, season, or series of events. Insurance certificates and endorsements required by the owning agency shall be provided in connection with each such facilities use agreement. To the extent a facilities use agreement imposes operational requirements specific to a particular use, those requirements shall apply only to that use. In the event of a conflict between this Agreement and an individual facilities use agreement, this Agreement shall control unless the parties expressly state in writing that the individual facilities use agreement supersedes a specific provision of this Agreement. Neither party shall be responsible for accidents, claims, losses, or damage occurring outside the dates, times, and areas expressly authorized in the applicable facilities use agreement.
Mutual Indemnity.
To the fullest extent permitted by law, each party (“Indemnifying Party”) shall defend, indemnify, and hold harmless the other party and its officers, officials, employees, agents, and volunteers (“Indemnified Parties”) from and against any third-party claims, demands, actions, damages, losses, liabilities, costs, and expenses, including reasonable attorneys’ fees, but only to the extent arising out of or relating to the negligent acts, errors, omissions, or willful misconduct of the Indemnifying Party or its officers, employees, agents, contractors, participants, invitees, or volunteers in connection with this Agreement.
Neither party shall be required to indemnify the other for the sole negligence or willful misconduct of the Indemnified Parties. The obligations of this section shall survive termination of this Agreement.
No Assignment or Transfer.
Neither party may assign, transfer, delegate, or otherwise convey its rights or obligations under this Agreement, in whole or in part, without the prior written consent of the other party; provided, however, that the City may administer or coordinate City facility scheduling through its officers, employees, and agents in the ordinary course of municipal operations.
No Exclusive Possession; No Vested Rights.
The parties acknowledge that City facilities subject to this Agreement remain public facilities. Except as expressly provided herein for coordinated use and scheduling, nothing in this Agreement grants School or any third party an exclusive possessory interest, easement, irrevocable license, or vested right to continued use of any City facility.
Field Control, Scheduling, and Use – Shelton Field (Hardball Field #1)
1. School Control of Field Use
The City shall retain ownership of Shelton Field, including the respective concession stand building and dugouts, and shall retain ultimate authority over municipal scheduling priorities, special events, public access restrictions, emergency closures, and compliance with law. Subject to the foregoing City rights, the School shall have primary day-to-day scheduling authority for School baseball-related programming at Shelton Field during the Term, including authority to determine routine practice and game schedules and whether the field is playable for School activities. The City shall retain the right to close, restrict, suspend, or reassign use of Shelton Field at any time for City special events, emergency response, repairs, maintenance, unsafe conditions, legal compliance, or other municipal purposes. The Newburg Park parking lot gate and restrooms shall remain subject to City control, and any opening or access outside normal City practices shall require City staff approval.
2. Approval of Outside Users
Any outside organization seeking to use Shelton Field, including historically recurring users such as American Legion or Humboldt Crabs Camp, must obtain prior written approval from both the City and the School through the applicable facilities use process. Historical use of Shelton Field shall not create any vested right, priority right, or guarantee of continued access.
City Agrees To
1. The City agrees to make Shelton Field (formerly “Hardball Field #1”), together with the respective concession stand building and dugouts, available for School use during the Term on the terms set forth herein, subject at all times to the City’s retained ownership, operational rights, special event needs, emergency needs, maintenance requirements, and approval rights described in this Agreement. School shall pay the City One Thousand Dollars ($1,000) annually, due on or before February 1 of each year. In addition, School shall pay the estimated water utility cost associated with irrigation of Shelton Field from May through October on the City’s regular irrigation schedule. This Agreement does not grant the School any exclusive possessory interest, easement, or vested right to use the field except as expressly stated herein.
2. Provide for use of Rohner Park for up to one single-day Cross Country event per year at no charge. Due to the Special Event nature of this event, school shall reserve any and all facilities that will not otherwise be rentable by the City (including facilities impacted by parking and traffic control). Facility Use agreement/application shall be submitted at least 60 days in advance and is subject to approval depending on other rentals in the park. This Agreement does not substitute a rental application and does not hold/reserve dates.
3. Provide for use of Rohner Park Cookshack/Picnic Area and Pavilion Field for up to one single-day FFA Greenhand event per year at no charge. Facility Use agreement/application shall be submitted at least 60 days in advance and is subject to approval depending on other rentals in the park. This Agreement does not substitute a rental application and does not hold/reserve dates.
4. Provide for use of Rohner Park Deep Pits for up to one single-day FFA Humboldt County Fair BBQ event per year at no charge. Facility Use agreement/application shall be submitted at least 60 days in advance and is subject to approval depending on other rentals in the park. This Agreement does not substitute a rental application and does not hold/reserve dates.
5. Provide School with any necessary facility orientations.
6. Complete a Facilities Use Agreement form for each season’s use of School facilities.
7. Track and maintain records of the number of hours City utilizes School facilities or sports fields.
8. Immediately notify School of any known or suspected damage to, or dangerous condition on, School property.
9. Leave School premises clean, in the manner in which it was prior to use.
10. Maintain workers’ compensation coverage as required by California law for its employees. To the extent permitted by law and commercially available, such coverage shall include a waiver of subrogation in favor of the Fortuna Union High School District..
11. Maintain automobile liability coverage, or a program of self-insurance or pooled risk coverage, for owned, hired, and non-owned vehicles used in connection with City operations, in amounts the City deems commercially reasonable and consistent with public-agency risk management practices. To the extent the City maintains commercial liability policies applicable to the use, the School may be named as an additional insured where appropriate and available by endorsement..
12. The City may satisfy any or all of its insurance obligations under this Agreement through self-insurance, joint powers authority coverage, risk pooling, or commercial insurance, as permitted by law. The City shall provide reasonable evidence of coverage upon request. The City shall use reasonable efforts to provide notice of any material reduction in coverage affecting this Agreement, but only to the extent such notice is available to the City under the terms of its coverage.
13. The City shall provide evidence of any required coverage, if applicable, prior to the commencement of a particular use, consistent with the requirements of the applicable facilities use agreement and the City’s lawful self-insurance or pooledrisk arrangements.
School Agrees To
1. Not utilize stadium lights without notifying City (additional fee may apply).
2. Be responsible, at School’s sole cost, for routine day-to-day maintenance of Shelton Field reasonably associated with School’s use, including infield and outfield upkeep, dugout housekeeping, concession stand building housekeeping, and ordinary baseballrelated field preparation, subject to City oversight and any standards reasonably established by the City. Capital improvements, permanent alterations, tree work, grading, irrigation modifications, structural repairs, or material changes to City property shall be performed with applicable permits. School shall promptly remove any maintenance-related debris or project debris generated by School from City property at School’s sole expense. Be responsible for maintaining Shelton field and respective dugouts, batting cages, stadium seating, etc. and all landscaping outside of the field from the northeast corner of the outfield and north until the creek as well as the southwest corner of the outfield and west until the creek. Any maintenance-related debris shall be removed from City property by School at School’s expense.
3. Any debris from projects and/or facility improvements shall be removed from City property at the expense of School.
4. Ensure that the City has access to all City-owned facilities located at Newburg Park at all times as reasonably necessary for municipal operations, inspection, repair, maintenance, public safety, and compliance purposes. School shall provide City with any keys, access credentials, or coordination reasonably necessary to preserve uninterrupted City access..
5. Comply with all state laws regarding building permits, materials storage, selling of food, fire codes, etc.
6. Complete a Facilities Use Agreement forms for each use of City facilities.
7. Provide all necessary utilities to facilitate use of School property.
8. Provide City with any necessary facility orientation of School property.
9. Track and maintain record of the number of hours City uses School facilities or sports fields.
10. Track and maintain records of the number of hours School utilizes City facilities or sports fields.
11. Immediately notify City of any known or suspected damage to, or dangerous condition on, City property.
12. Leave City premises clean, in the manner in which it was prior to use.
13. Provide the City reasonable access to Damon Gym and Logan Gym during dates and times requested by the City, subject to availability, School priority uses, previously approved uses, maintenance needs, and safety considerations. Nothing in this Agreement shall obligate School to displace regular School programming or previously approved uses, but School shall use good faith efforts to coordinate scheduling so as to accommodate City recreation programming where feasible..
14. Be responsible for maintaining School facilities. Agreement does not bind City to such requirements. School agrees to keep all rented facilities in working order, as required by the laws of the State of California.
15. Provide all necessary utilities to facilitate use of School property.
16. Maintain workers’ compensation insurance as required by California law for School employees participating in activities under this Agreement. To the extent permitted by law and commercially available, such coverage shall include a waiver of subrogation in favor of the City of Fortuna.
17. Maintain automobile liability coverage for owned, hired, and non-owned vehicles used in connection with School activities under this Agreement in an amount not less than One Million Dollars ($1,000,000) per accident, or such greater amount as may be required in the applicable facilities use agreement. The City of Fortuna, its officers, officials, employees, agents, and volunteers shall be named as additional insureds to the extent available by endorsement.
18. School may satisfy any portion of its insurance obligations through permissible selfinsurance or pooled coverage only if acceptable to the City in its reasonable discretion and documented to the City’s satisfaction. School shall provide certificates of insurance and required endorsements before commencement of use. School shall provide notice of cancellation, nonrenewal, or material reduction in coverage to the extent such notice is required or available under its policies.
19. School shall provide proof of all required insurance coverage and endorsements, both under this Agreement and under any applicable facilities use agreement, prior to the start of the applicable use period.
20. Maintain School property in working order, meeting all applicable local, County and State laws.
21. In considering requests from historically recurring seasonal users of Shelton Field, including American Legion and Humboldt Crabs Camp, the parties shall use good faith efforts to accommodate such users where feasible; however, no recurring user shall have any guaranteed right to access, priority scheduling, or continued seasonal use absent written approval under the then-applicable facilities use process.
22. Pick up trash and maintain neat and tidy fields.
23. Ensure no hazards are present on the premise.
Default.
A party shall be in default under this Agreement if it: (a) fails to perform any material obligation under this Agreement; (b) fails to maintain required insurance; (c) uses the other party’s facilities in violation of applicable law or material facility rules; or (d) causes or permits unsafe conditions and fails to promptly correct them after notice where correction is reasonably possible. Except for defaults involving immediate health, safety, insurance, or legal compliance concerns, the non-defaulting party shall provide written notice of default and the defaulting party shall have ten (10) days to cure, or such longer period as is reasonably necessary if cure is commenced within ten (10) days and diligently completed. For defaults involving immediate health, safety, insurance, or legal compliance concerns, the non-defaulting party may suspend use immediately pending cure or terminate this Agreement as provided herein.
No Consequential Damages.
In no event shall either party be liable to the other for any indirect, consequential, special, incidental, or punitive damages arising out of or relating to this Agreement, including loss of anticipated revenues, programs, or goodwill.
Address of Service
Any notice or other required elements under this Agreement or required facilities use agreements, shall be mailed to the party and address listed below.
Amy Nilsen Date
City Manager, City of Fortuna
PO Box 545
Fortuna, CA 95540
707-725-1409
Clint Duey Date
Superintendent, Fortuna Union High School District
379 12th Street
Fortuna, CA 95540
707-725-4461
Intended Annual Use of Facilities
While actual utilization may vary, the parties acknowledge that the following are nonbinding estimates of anticipated annual use for planning purposes only. Any additions, deletions, or changes to estimated use may be made through the ordinary facilities use approval process and do not require formal amendment of this Agreement unless the parties expressly agree otherwise in writing. Actual dates, times, and use areas shall be established only through approved facilities use agreements.
City Usage of School Property (265 hours estimated total) Fortuna Union High School Gymnasiums – Damon Gym and Logan Gym School Usage of City Property, excluding year-round use of Shelton Field (approximately 80 hours total)
Rohner Park Various Facilities for Cross Country Event (21 hours) o Picnic Area/Cookshack (7 hours)
o Pavilion Field (7 hours)
o Firemen’s Pavilion (7 hours)
Rohner Park Deep Pits for FFA Humboldt County Fair BBQ (45 hours) o Deep Pit #1 (15 hours)
o Deep Pit #2 (15 hours)
o Deep Pit #3 (15 hours)
Rohner Park Various Facilities for Greenhand FFA Conference (14 hours) o Picnic Area/Cookshack (7 hours)
o Pavilion Field (7 hours)
Business Agenda Item 5c
STAFF REPORT
Business Agenda Item
DATE: March 16, 2026
TO: Honorable Mayor and Council Members
FROM: Amy Nilsen, City Manager
SUBJECT: Receive and File Fortuna Business Improvement District’s Annual Report and By-Law Amendments
STAFF RECOMMENDATION:
Staff recommends the Council receive and file, with or without modification, the Fortuna Business Improvement District’s (FBID) Annual Report.
EXECUTIVE SUMMARY
The Fortuna Business Improvement District (“FBID”) was established by the City in 1990 under the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code §§ 36500 et seq.) to benefit and promote the City’s businesses. Under the enabling statute, the Council is required to approve an annual report that contains the following information:
(1) Any proposed changes in the boundaries of FBID or in any benefit zones within the area.
(2) The improvements and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements and the activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
(5) The amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The amount of any contributions to be made from sources other than assessments levied pursuant to this part.
The annual report (Attachment 1) is before your Council. The Council may approve the report as filed or may modify the report and approve it as modified.
As noted above, FBID was established by the City for the purpose of imposing benefit assessments and charges on businesses for certain identified purposes, including:
Business Agenda Item 5c
• Promote public events which are to take place on or in public places in the district; • Decorate public places in the district;
• Furnish music in public places in the district;
• General promotion of business activities in the district; and • Demonstrate to the District through a report the use of funds, attendance, and/or community benefit.
A. PROPOSED CHANGES IN THE FBID BOUNDARIES:
There are no proposed changes to the FBID boundaries.
B. SUMMARY OF ACTIVITIES FOR FISCAL YEAR 2025/2026:
Calendar Year 2025
April
• Approved $4,000 for the Fortuna Vintage Market
• Approved $1,000 for the Fortuna Christmas Music Festival May
• City Council voted to levy a flat assessment for FBID in the amount of $25 for Fiscal Year 2025-26
July
• Approved $1,004 for the Fortuna Fireworks and 3rd of July Festival • Approved $2,425 for the Fortuna Downtown Business Association. • Approved $4,000 to the Chamber of Commerce for Apple Harvest and the Al Gray Lighted Parade
C. BUDGET SUMMARY:
The FBID Advisory Committee reviewed and recommended that the Council accept the annual report and budget for FBID on January 27, 2026. FBID currently has a $25 flat assessment for all businesses for Fiscal Year 2025-26.
The total expenditures for Fiscal Year 2024-2025 year-to-date are $4,216.00. Total revenue for FY 2025-26 is $14,875. If the City Council approves the continuation of the flat assessment to be levied, FBID’s proposed budget for the next fiscal year will be approved with the City’s annual budget.
The FBID fund has an estimated balance of $16,280.
D. LEVY OF ASSESSMENT
For Fiscal Year 2025-26 a flat assessment of $25.00 for all businesses within the City of Fortuna was assessed.
Business Agenda Item 5c
It is the recommendation of the FBID Advisory Committee and staff that the Council make the following changes:
1. That, without changing the overall boundaries of the District and reassess the basis and method of collecting the assessment to a flat rate of $25 per business.
A change in the amount of the assessment and the elimination of the core areas would need to be memorialized in the Council’s annual resolution declaring its intention to levy the assessment and the resolution (following a public hearing) adopting the levy for the next fiscal year. Staff is seeking direction on the proposed levy from the Council to be able to bring forward the intent to levy the assessment and the resolution at an upcoming Council meeting.
FINANCIAL IMPACT:
If the continuation of an annual assessment is approved at a $25 flat fee approximately $16,500 would be generated annually.
The total expenditures for Fiscal Year 2025-26 year-to-date are $4,216. The FBID fund has a estimated year-end balance of $16,280.
RECOMMENDED COUNCIL ACTION:
1. Receive presentation of the FBID annual report and discuss.
2. Open Public Comment.
3. Close Public Comment.
4. Motion to receive and file the FBID Annual Report either (1) as presented or (2) with specified modifications and provide direction on the proposed changes to assessment.
Voice vote.
ATTACHMENTS:
• FBID 2025-26 Annual Report
FBID Annual Report 2024/2025
DRAFT FBID ANNUAL REPORT - 2025/2026
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 2025-26.
2. Improvements and Activities to be Provided
Calendar Year 2025
April
• Approved $4,000 for the Fortuna Vintage Market
• Approved $1,000 for the Fortuna Christmas Music Festival May
• City Council voted to levy a flat assessment for FBID in the amount of $25 for Fiscal Year 2025-26
July
• Approved $1,004 for the Fortuna Fireworks and 3rd of July Festival • Approved $2,425 for the Fortuna Downtown Business Association. • Approved $4,000 to the Chamber of Commerce for Apple Harvest and the Al Gray Lighted Parade
3. Estimate of the Cost of Providing the Improvements and the Activities The amount collected through the assessments of Fortuna businesses for FY 2025-26 is estimated at $16,500.
FBID Annual Report 2024/2025
Adopted Budget for Fiscal Year 2025-26 by Fortuna City Council:
FBID Detailed Budget for Fiscal Year 2025-26
Annual
REVENUE
Citywide Assessments $16,500
Total Revenue $16,500
EXPENSES
Marketing & Promotion
Core Area Disbursements $7,500
General Advertising $4,000
Publication Expense $500
Special Events/Functions
Lighted Parade $4,000
Fireworks Festival $1,000
Apple Harvest $2,000
Other Misc Events $13,500
Total Expenses $32,500
Net Annual Surplus/(Deficit) $(16,000)
Fund History 2025-26
Fund 250 Adopted
Beginning Available Fund Balance $ 32,280
Revenues:
City Wide Assessment Fee 16,500
Downtown Assessment Fee -
Redwood Village Assessment -
Strong's Creek Plaza Assessment -
Miscellaneous Revenue -
Transfer from Other Fund -
16,500
Operating Expenditures:
Pay and Benefits -
Service and Supplies 32,500
Capital Outlay -
32,500
Net Annual Activity (16,000)
Ending Available Fund Balance $ 16,280
FBID Annual Report 2024/2025
Actual Financials (Year to date) 2025-2026
YTD
INCOME
Citywide Assessments $14,875
Total Revenue $14,875
EXPENSES
Marketing & Promotion
Core Area Disbursements –
Downtown Merchants
$0
Special Events/Functions
Lighted Parade $0
Fireworks Festival $0
Apple Harvest $1,992
Christmas Music Festival $2,224
Other Misc Events $0
Total Expenses $4,216
Net Annual Surplus/(Deficit) $10,659
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 2025-26 a flat assessment of $25.00 for all businesses within the City of Fortuna was assessed.
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 authorized by the city council in accordance with the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code Section 36500 et seq.).
The benefit assessment shall be payable annually during each fiscal year, as provided in FMC
5.40.080. (Ord. 2025-774 § 3 (Exh. A); Ord. 2002-636 § 2; Ord. 94-595 § 2; Ord. 90-550 § 1(B)).
5.40.080 Collection of benefit assessment
FBID Annual Report 2024/2025
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
In addition, it is recommended the assessment for Fiscal Year 2026-27 remain at $25. There are approximately 660 businesses in Fortuna which would generate approximately $16,500 annually.
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 2024- 25 is $0 due to not having an assessment for FY 24-25. The FBID fund had a current beginning FY 25-26 balance of $42,977 with $6,350 reserved for funding in the Redwood Village Core Area and $3,150 reserved for funding in the Strongs Creek Core Area. After the FY 25-26 budgeted $16,000 deficit this leaves $17,477 that can be spent with no Core Area restrictions.
FBID Annual Report 2024/2025
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.