Business Agenda Item 4c
STAFF REPORT
Business Agenda Item
DATE: April 6, 2026
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 2026-27, Resolution 2026-09
STAFF RECOMMENDATION:
Staff recommends that the Council discuss and consider adopting Resolution 2026-09 declaring the Council’s intention to levy the Fortuna Business Improvement District (FBID) assessment for Fiscal Year (FY) 2026-27 and setting a public hearing thereon for May 4, 2026.
EXECUTIVE SUMMARY
On March 16, 2026, the City Council approved the FBID Annual Report (Report) for FY 2025-26 as presented. The Report contained a recommendation to continue to levy a flat assessment of $25.00 per business for FY 2026-27. 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 16, 2026.
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 May 4, 2026, 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.
(A boundary change is not proposed.)
(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.
Business Agenda Item 4c
(Continue 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 May 4, 2026, which is the date of the first regular meeting in May.)
(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 2026-27 and setting a public hearing thereon.
FINANCIAL IMPACT:
An FBID assessment of $25.00 per business would generate approximately $16,500 annually.
The total expenditures for Fiscal Year 2025-26 year-to-date are $4,216.00.
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 2026-09 and read by title only. Roll Call vote.
RECOMMENDED COUNCIL ACTION:
The City Council can choose not to adopt the resolution of intent and set the public hearing for May 4. This would leave FBID without ongoing funds to support community events such as Apple Harvest, Al Gray Lighted Parade, and the 3
rd of July Festival.
Business Agenda Item 4c
ATTACHMENTS:
• Resolution 2026-09, A Resolution of the City Council of the City of Fortuna Declaring its Intention to Levy an Annual Assessment for Fiscal Year 2026-2027 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