AgdaPkt 2009-07-13 clsd and jnt - Laserfiche WebLink

Browse Search

7C Page 2 kept pace with inflation the City would be receiving about $650,000 in additional business license revenue annually. If the Council does not attach any restrictions upon the use of these revenues then approval by a simple majority of those voting will be required for the increase to become effective. At the February 9, 2009 meeting the Finance Committee expressed a preference for increasing the business license tax rates by 50% over a three year period commencing July 1, 2010 with the tax rates then increasing by changes in the above consumer price index in subsequent years. The Committee then directed staff to meet with key stakeholder groups in the community, such as the Chamber of Commerce (Chamber) and Downtown Business Group, to explain the favored approach and to gauge the receptivity of this possible tax increase. The Finance Director and City Manager met and discussed this concept with several committees at the Chamber of Commerce. The result was the Chamber's Economic Development Committee voting to recommend to the Chamber Board of Directors that the Board support the proposed increase in business license tax rates. On May 28th the Chamber Board of Directors voted to support the proposed increase in business license tax rates should the Council elect to place such an increase on the November ballot. Although staff is unaware of the Downtown Business Group taking a formal position on this matter we did not detect any strong or deep opposition to it. The Finance Director also presented this to the Board of Realtors and is uncertain whether this group will be taking a formal position on this proposal. The proposed ordinance increasing the City's business license tax rates is attached hereto as Attachment 1. The City Council will need to adopt a resolution submitting the proposed ordinance to the voters of Redwood City at the Consolidated General Municipal Election to be held on November 3, 2009. Attached hereto as Attachment 2 is the proposed resolution. FISCAL IMPACT Should the voters approve adoption of the proposed Business License Tax increase, the additional revenues to be received by the City of Redwood City are estimated to be approximately $650,000 per year by FY 2012-2013. "fy{rZ-- Brian Panty Finance Director lV/---~ Peter In ram City Manager ATTACHMENTS 1. Ordinance 2. Resolution RELATED DOCUMENTS IN CITY CLERK'S OFFICE NONE