HomeMy WebLinkAboutAgenda Report - April 7, 2010 J-06AGENDA ITEM
On% CITY OF LODI
,. COUNCIL COMMUNICATION
AGENDA TITLE: Receive Presentation on a Proposed New Sales Tax (NST) Electric Rate
Discount and Provide Electric Utility Departmentwith Direction (EUD)
MEETING DATE: April 7,2010
PREPARED BY: Interim Electric Utility Director
RECOMMENDED ACTION: Receive a presentation on a proposed New Sales Tax (NST)
Electric Rate Discount and provide Electric Utility Department with
direction.
BACKGROUND INFORMATION: The Electric Utility Department has developed for City Council
consideration a new electric utility rate incentive: the New Sales Tax
(NST) Rate Discount. The proposed NST has three primary
objectives:
1) Enhance sales tax revenue to Lodi's General Fund;
2) Reduce the vacancy rate of commercial properties in Lodi, thus reducing the potential for property
neglect, vandalism and/or blight; and,
3) Strengthen Lodi's commitment to business growth and economic development during this
temporary national economic downturn.
As proposed, NST would be available to commercial customers (G I, G2, G3, G4 or G5 electric utility
rate) who generate at least $100,000 in sales tax or more per year for the City of Lodi pursuant to
Bradley Burns Sales Tax, and occupy a property that has been vacant for a minimum of three months.
As presented, the proposed rate discountwould be 10 percentthrough Fiscal Year 2010/11 and 5
percent through Fiscal Year 2011/12.
The proposed resolution would have the incentive expire at the end of June 2012 at which point staff
could assess whether economic conditions require renewal.
The discount could be in effect upon a customer occupancy date of July 1, 2010, with City Council
approval by ordinance.
FISCAL IMPACT: Unknown. Dependent upon the numb of p rticipants, and how many of those
would not occupy the vacant propeAywitWut the discount.
FUNDING: Not applicable.
I / I k-e4J�i
n 4Weisel
nter m Electric Utility Director
PREPARED BY: Rob Lechner, Manager, Customer Service and Programs
KAW/RUIst
APPROVED: X2�
Blai g, City Manager