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HomeMy WebLinkAboutCC AG PKT 2007-04-23 #G e _ e AGENDA REPORT DATE: April 23, 2006 TO: Honorable Mayor and City Council TIiRU: Greg Beaubien, Interim City Manager FROM: Keith A. Evanoff, elMA, CRP, CRRA Director of Administrative Services/Treasurer SUBJECT: Business License CPI Adjustment SUMMARY OF REQUEST: That Council implement the annual CPI increase to the business license tax for Fiscal Year 2007- 08. BACKGROUND: The Municipal Code identifies the amount of the business license tax based on the type of business. There is a base tax that is used to determine the amount of business license tax depending on the type of business. The current flat base tax is $194. The Code provides the authorization to raise the base tax by the Consumer Price Index on an annual basis. The CPI factor is calculated based on the Los Angeles-Riverside-Orange County Index for All Urban Consumers on February for each comparative period. FISCAL IMPACT: The current flat base tax is $194. The increase in the Consumer Price Index is 3.5% resulting in an adjusted rate of $201. The net increase in annual business tax revenues is approximately $5,000 for fiscal year 2007/08. RECOMMENDATION: That Council implement the CPI increase to the business license tax for fiscal year 2007/08. Kci1{;:E:.~ Director of Administrative Servicesrrreasurer NOTED AND APPROVED: , Greg Beaul:)' Interim City anager Agenda Item~