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Fortuna council approves $12,500 supplemental budget for EFID fiscal analysis
Summary
The council approved a $12,500 supplemental appropriation from general‑fund reserves to pay a consultant to conduct a fiscal impact analysis for a proposed enhanced infrastructure financing district to fund interchange and active‑transportation improvements.
THE CITY COUNCIL voted Aug. 18 to approve a supplemental budget appropriation of $12,500 and to authorize the city manager to execute a contract with a consultant to perform a fiscal impact analysis for a proposed Fortuna Enhanced Infrastructure Financing District (EFID).
Aaron Filmy, Fortuna’s finance director, told the council the analysis will estimate tax increments (property tax, sales tax, transient occupancy tax) and expenditures to determine whether an EFID is financially viable for the city and willing taxing entities. "An EFID is a special financing district that allows cities to fund public capital improvements without imposing new taxes," Filmy said, describing participation as voluntary for other taxing agencies.
Filmy said Fortuna’s most pressing infrastructure needs for the EFID concept are the U.S. 101 interchanges at Kenmar (Ken Mar in staff materials) and Twelfth Street, where congestion and limited pedestrian and bicycle access constrain development and riverfront reconnection. He said Caltrans has indicated willingness to help identify matching grant funds, but the city will still need local matching funds to pursue those grants.
Filmy described the requested $12,500 as a supplemental budget request drawn from general‑fund reserves; he reported total reserves of about $6.5 million, of which approximately $1 million is committed for a general‑plan update and about $250,000 remains unreserved and available for other uses.
A council member moved to approve the supplemental request and authorize the city manager to execute the contract with the consultant (Cosmont, as stated in the staff report). The motion passed unanimously among members present.
What happens next: The consultant will prepare the fiscal‑impact analysis to estimate projected revenues and costs and to test participation scenarios with Humboldt County and other taxing entities; staff indicated the analysis will inform whether an EFID is a viable mechanism to finance interchange and streetscape improvements.
