Because of the recent forest fire, we voluntarily decided to cancel this year's fireworks festival.

Literal

Mountain-fire [attributive-の] after [because-なので] this-year [attributive-の] fireworks-festival [topic-は] voluntarily-[adverbial-に] cancellation [object-を] decided-[polite-ました].

A public announcement. 山火事 ('forest fire, wildfire,' literally 'mountain fire') is the standard word. 自主的に ('voluntarily, of one's own accord') uses the ~的に adverbial suffix. 花火大会 ('fireworks festival') is a summer tradition in Japan. The decision to cancel something voluntarily carries cultural weight — showing responsibility and consideration.