HomeMy WebLinkAboutCC AG PKT 2010-04-26 #EAGENDA STAFF REPORT
DATE: April 26, 2010
TO: Honorable Mayor and City Council
THRU: David Carmany, City Manager
FROM: Robbeyn Bird, CPA
Director of Administrative Services /City Treasurer
SUBJECT: BUSINESS LICENSE CONSUMER PRICE INDEX (CPI)
ADJUSTMENT
SUMMARY OF REQUEST:
That Council implement the annual Consumer Price Index (CPI) increase to the
business license tax for Fiscal Year 2010/11.
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 $207. The Code provides the authorization to raise the base tax by the
CPI 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.
FINANCIAL IMPACT:
The current flat base tax is $207. The increase in the Consumer Price Index is
1.4% resulting in an adjusted rate of $210. The net increase in annual business
tax revenues is approximately $5,500 for fiscal year 2010/11.
RECOMMENDATION:
Staff recommends that Council implement the CPI increase to the business
license tax for fiscal year 2010/11.
SUBMITTED BY:
9 A. "
Robbeyn Bird, CPA
Director of Administrative Services
NOTED AND APPROVED:
David Carmany
City Manager
Agenda Item E