HomeMy WebLinkAboutCC AG PKT 2006-04-24 #H
AGENDA REPORT
DATE:
April 24, 2006
TO:
Honorable Mayor and City Council
THRU:
John B. Bahorsk~ City Manager
FROM:
Keith A. Evanoff; CIMA, CRP, CRRA
Director of Administrative ServicesITreasurer
SUBJECT:
Business License CPI Adjustment
SUMMARY OF REOUEST:
That Council implement the annual CPI increase to the business license tax fur Fiscal Year 2006-
07.
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 $185.00. The Code provides the
option 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 fur All Urban Consumers
on February fur each comparative period.
FISCAL IMPACT:
The current flat base tax is $185. The increase in the Consumer Price Index is 5.1% resulting in
an adjusted rate of $194. The net increase in annual business tax revenues is estimated at
$60,000 fur fiscal year 2006/07.
RECOMMENDATION:
That Council implement the CPI increase to the business license tax fur fiscal year 2006/07.
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Director of Administrative ServiceslTreasurer
Agenda item 14
April 24, 2006
Business License Update
Agenda item