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City of San Leandro <br />Meeting Date: June 6, 2022 <br />Staff Report <br />Agenda Section:File Number:22-261 PUBLIC HEARINGS <br />Agenda Number:11.b. <br />TO:City Council <br />FROM:Fran Robustelli <br />City Manager <br />BY:Susan Hsieh <br />Finance Director <br />FINANCE REVIEW:Susan Hsieh <br />Finance Director <br />TITLE:Ordinances that Amend Various San Leandro Municipal Codes to Annually <br />Adjust the Business License Tax, EMS Tax, and Emergency Communications <br />System Access Tax for 2022-2023 <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends the City Council approve by ordinances annual adjustments to the Business <br />License tax, EMS tax, and Emergency Communications System Access tax in accordance with <br />the San Leandro Municipal Code. Ordinances amending the three tax schedules are presented <br />to the City Council for adoption. <br />BACKGROUND <br />Annual adjustments to the tax rates are based on the percentage increase in the region’s <br />Consumer Price Index (CPI). The City determines the annual change in CPI and applies this <br />increase to the Business License tax, EMS tax, and Emergency Communications System <br />Access tax schedules as permitted by San Leandro Municipal Code Sections 2-2-500, 2-13-140, <br />and 2-18-210. Changes to the tax rate schedules become effective immediately upon adoption. <br />The new rate schedules will be implemented on July 1, 2022. <br />DISCUSSION <br />Business licenses are permits allowing an organization to conduct business in the City. <br />Organizations may be a sole proprietor, a company, or other business entity with a product or <br />service to sell. Depending on the business classification, business license fees are a flat annual <br />fee or a base fee and a per unit fee. <br />The Emergency Communications System Access tax requires subscribers to telephone service <br />in the City to pay for improvements and operation of the 911 communication (call processing and <br />call dispatch) system. The 911 communication system provides immediate access to emergency <br />services. The access tax is imposed on a per line basis-made up of single access lines, trunk <br />Page 1 City of San Leandro Printed on 6/1/2022