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Fortuna council adopts $25 flat assessment for business improvement district, amends FBID rules

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Summary

The City Council adopted a $25 flat annual assessment per qualifying business for the Fortuna Business Improvement District (FBID) for fiscal year 2025–26 and approved ordinance changes that dissolve three core areas and revise the advisory committee structure.

On May 5, 2025, the Fortuna City Council adopted Resolution 2025-12 to levy a flat $25 assessment per qualifying business for fiscal year 2025–26 and completed the second reading and adoption of Ordinance 2025-774 to amend the Fortuna Business Improvement District (FBID) regulations.

Staff reported there are approximately 660 qualifying businesses in Fortuna and that a flat $25 assessment would generate an estimated $16,500 for the FBID fund in 2025–26. The council opened and closed the public hearing without receiving oral protests and staff reported it had not received sufficient written protests to block the assessment.

Resolution 2025-12 authorizes the FY 2025–26 levy at the flat $25 rate. The roll-call vote read into the record was: Council Member Connolly — Aye; Council Member Stevens — Yes; Mayor Pro Tem Chen — Yes; Mayor Mike Johnson — Yes. The motion carried and the assessment was authorized.

On the ordinance, staff explained the amendments dissolve three previously defined benefit core areas (Downtown North Core area, Redwood Village Shopping Center core area and Strongs Creek Plaza core area), remove definitions no longer needed for an annual flat assessment, reduce the advisory committee from seven to five members and revise committee composition requirements (four members from specified industry groups and one City Council liaison). The amendment also removes the requirement to apportion funds to the three core areas and provides that funds may be used to promote the entire community while retaining the principal purpose of the district.

Council conducted the second reading and adopted Ordinance 2025-774. The roll-call vote was recorded as: Council Member Conley — Aye; Council Member Stevens — Aye; Mayor Pro Tem Trent — Yes; Mayor Mike Johnson — Yes.

Staff advised that future FBID work will consider a more detailed, tiered assessment once the city’s new finance system (NvoiceCloud) is fully online and that the flat rate approach is intended as a simplified first step for FY 2025–26.