1998 AGN FEB 03 I23 - Laserfiche WebLink

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CITY OF COLTON s AGENDA REPORT FOR COUNCIL MEETING OF FEBRUARY 3, 1998 APPROVAL: I FROM: I SUBJECT: DATE: Honorable Mayor and City Council rcia, City Community I Director First Reading of an Amendment to the Business License Ordinance, Implementing a $6,000 Annual CAP. inuary 27, 1998 ilm BACKGROUND: As Council may; recall, last year, staff was requested to re-examine the method the City used to calculate its business license tax, by comparing the implementation of a CAP or a Not to Exceed amount due on gross receipts. To determine what the projected financial impact would be to the City if a CAP were implemented, staff provided Council with an analysis for their review. DISCUSSION/ANALYSIS: After review and discussion of the projected analysis, the Council unanimously approved the implementation of a $6,000 annual CAP to the City's business license tax. FINANCIAL IMPACT: A review of the City's top 1,000 revenue-producing businesses reflects a significant amount of revenue generated by business License tax. To determine what the projected financial impact to the City would be if a CAP were implemented, staff performed the following analysis: CAP PROJECTED REVENUE LOSS PERCENTAGE $10,000 $ 7,372 1-5% $ 8,000 $ 14,535 6-11% $ 6,000 $ 29,015 12-18% $ 1,000 $206,829 65-77% The loss in revenue as projected above will have an immediate and significant impact if a CAP is implemented. The potential loss in revenue will also continue every year thereafter. Revenuesgenerated by the City reflect businesses located both within and outside of the City limits. Item # 23