Fortuna council adopts new fee schedule, shifts most building permits to valuation‑based system

The Fortuna City Council voted unanimously to adopt Resolution 20 26‑18 on May 18, 2026, establishing the city’s schedule of fees and charges for fiscal year 2026–27, including changes to building permit fees that move most permits to a valuation‑based model.

The change, explained by staff, raises a majority of building fees by 2.9% and introduces a valuation‑based fee structure for permits other than over‑the‑counter items. “We are lower than each of those two cities,” staff said in a comparison to nearby Arcata and Eureka, arguing the new approach improves transparency and aligns Fortuna with regional practice.

Why it matters: the valuation‑based approach changes how total permit costs are calculated for construction projects. Staff ran scenarios showing a typical single‑family home could see total permit costs rise roughly 10–15% under certain valuations, though outcomes vary by project value. Staff estimated the fee changes for the building department would generate approximately $8,500 and project building fee revenue of $332,325 against a projected department expense of $341,627, leaving an estimated general‑fund subsidy of $9,302.

Council members questioned how the new structure would affect homeowners and whether fee reductions in one area (for example parks and recreation) could be offset by cuts elsewhere or by future grant revenue. One council member urged the city to consider how future fee structures might support community priorities such as youth recreation and affordable housing.

The council opened a public hearing and heard comments from staff and council before moving and adopting the resolution by roll call vote: Council member Connolly — Aye; Council member Stevens — Yes; Mayor Pro Tem Trent — Yes; Mayor Johnson — Yes. The motion to adopt was made by a council member and seconded during the meeting.

The resolution removes duplicative per‑permit issuance fees listed under individual permit categories, simplifies the fee schedule, and authorizes the city to proceed with the FY2026–27 fee schedule as adopted. Implementation will follow existing departmental processes; staff said over‑the‑counter permits (for items such as roofing and water‑heater permits) were left largely unchanged and will increase only with the 2.9% CPI adjustment.

Next steps: the fee schedule will be incorporated into the city’s fiscal year documents and applied to permits issued under the adopted schedule. Council discussion noted any substantive changes later recommended by council would require budget adjustments to offset revenue effects.