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
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
WHEREAS, in 1990, the City Council of the City of Fortuna established the Fortuna Business Improvement District (“FBID”) under the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code §§ 36500 et seq.); WHEREAS, FBID continues to confer a special benefit on those businesses subject to the annual assessment;
WHEREAS, on March 16, 2026, the Council received and filed the annual report of the FBID advisory board without modification;
WHEREAS, pursuant to Section 36534 of the California Streets and Highways Code, the City Council, by this Resolution, provides notice of its intent to levy the annual assessment for Fiscal Year (FY) 2026-27, as more particularly set forth below, and of the time and place for a public hearing on the levy of the proposed assessment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:
1. The recitals set forth above are true and correct.
2. The City Council does not propose a change to the boundaries of the Fortuna Business Improvement District.
3. The City Council intends to levy and collect a flat assessment in the amount $25 upon all businesses, trades and professions located within the boundaries of the District , as detailed in the Annual Report.
4. The activities and improvements authorized by section 5.40.070 of the Fortuna Municipal Code shall remain unchanged for FY 2026-27.
5. Reference is made hereto to the Annual Report approved by the Council on March 16, 2026, and on file with the City Clerk for a full and detailed description of the improvements and activities provided for in FY 2025-26, the boundaries of the area and the proposed flat assessment to be levied upon the businesses within the area for that fiscal year.
6. The time and place for a public hearing to be held by the City Council on the levy of the proposed flat assessment for FY 2026-27 are set for May 4, 2026, at 6:00 PM, at City Hall located at 621 11th Street, Fortuna, CA 95540. The clerk shall give notice of the public hearing by causing the resolution of intention to be published once in a newspaper of general circulation in the City not less than seven days before the public hearing.
7. At the time of the public hearing, written and oral protests may be made in the manner required by section 36524 and 36525 of the California Streets and Highways Code.
8. Every written protest shall be filed with the City Clerk at or before the time fixed for the public hearing. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the City as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest.
9. If written protests are received from the owners of businesses in the district area which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings to levy the proposed assessment for the 2026-2027 fiscal year shall be taken for a period of one year from the date of the finding of a majority protest by the City Council.
10. This Resolution shall take effect immediately upon adoption by the City Council.
PASSED and ADOPTED at a regular meeting of the City Council of the City of Fortuna, California, on this 6
th day of April, 2026 by the following vote:
AYES
NOES:
ABSENT:
ABSTAIN:
__________________________
Mike Johnson, Mayor
ATTEST:
__________________________
Siana L. Emmons, City Clerk