Finance Highlights 2012 0406 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM DATE: April 6, 2012 TO: Finance Committee FROM: Chris Zapata, City Manager BY: James H. O'Leary, Interim Finance Director Mary Ann Perini, Budget and Compliance Manager SUBJECT: Discussion Regarding Proposed Ordinances Amending the Municipal Code Related to Annual Adjustments to Business License Fee, Emergency Communication System Access Tax, and Emergency Medical Services Tax SUMMARY AND RECOMMENDATION Staff recommends the Finance Committee approve the proposed adjustments to Business License fees, the Emergency Communication System Access Tax (9 -1 -1), and the Emergency Medical Services taxes in accordance with the San Leandro Municipal Code. Following the Finance Committee approvals, ordinance amendments for each of the three tax schedules will be presented to the City Council for approval as part of the 2012 -13 budget approval process. DISCUSSION As a part of the annual budget process, the City determines the annual change in the Consumer Price Index (CPI) and applies this increase to the business license fee schedule, the 9 -1 -1 access taxes and the EMS tax schedule as allowed by the San Leandro Municipal Code Sections 2 -13- 140, 2 -18 -210, and 2 -2 -500. If approved by the Finance Committee and adopted by the City Council, the following proposed adjustments to the City's fee and tax rate schedules for business licenses, 9 -1 -1 access taxes, and EMS taxes would be effective July 1, 2012. The change in the Consumer Price Index, distributed by the Bureau of Labor Statistics for the Consolidated Metropolitan Statistical Area (CMSA) covering San Francisco — Oakland — San Jose is the annual average change for 2011 (January through December) amounts to an increase of 2.6 %. In accordance with the Municipal Code, the tax schedules for business licenses, 9 -1 -1 access, and EMS will be adjusted by 2.6 %. The unit fee for retailing, wholesaling, and manufacturing will increase to $34.50 (per each owner and each employee) for business licenses, the single access line tax rate for 9 -1 -1 will increase to $2.15, and a benefit unit tax under the EMS will increase to $15.35.