HomeMy WebLinkAboutCC AG PKT 2008-05-12 #G
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AGENDA STAFF REPORT
DATE:
May 12, 2008
TO:
Honorable Mayor and City Council
David Carmany, City Manager
THRU:
FROM:
Robbeyn Bird, CPA
Director of Administrative ServicesfTreasurer
SUBJECT:
BUSINESS LICENSE CPI ADJUSTMENT
SUMMARY OF REQUEST
That Council implements the annual CPI increase to the business license tax for Fiscal
Year 2008-09.
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 $201. 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 in February for each comparative
period.
FINANCIAL IMPACT
The current flat base tax is $201. The increase in the Consumer Price Index is 3.1 %
resulting in an adjusted rate of $207. The net increase in annual business tax revenues
is approximately $10,000 for fiscal year 2008/09.
RECOMMENDATION
That Council implements the CPI increase. to the business license tax for fiscal year
2008/09.
~~~~~J
Robbeyn ird, CPA
Director of Administrative Servicesrrreasurer
NOTED AND APPROVED:
6'~
David Carmany
City Manager
Agenda Item G