A en p
December 5, 2022
TO:
FROM:
Honorable Mayor and City Council
Department of Finance
SUBJECT: ANNUAL ADJUSTMENTS TO THE FISCAL YEAR 2023 SCHEDULE OF
TAXES, FEES, AND CHARGES RELATED TO NEW YEAR'S DAY AND
THE ROSE BOWL
RECOMMENDATION:
It is recommended that the City Council:
1. Find that the proposed rate increases are exempt from the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines Section 15061 (b)(3); and
2. Approve the scheduled rate increases effective February 1, 2023, for the Grandstand Permit Application, the Rose Bowl Admission Tax, and forthe New Year's Day Related Business Grandstand Seat Surcharge as set forth in the body of this report.
BACKGROUND:
Pursuant to Pasadena Municipal Code (PMC) Section 1.08.060, the Rose Bowl Admission Tax, the Grandstand Seat Surcharge, and the Grandstand Permit Application Fee are to be presented to City Council no later than December 15th and adjusted on February 1st of each year. PMC also states that these taxes and fees are adjusted by an amount equal to the change in the Consumer Price Index (CPI) for the Los Angeles Long Beach-Anaheim metropolitan area for the preceding 12-month period ending October 1st. The change in CPI for all urban consumers in the Los Angeles-Long Beach-Anaheim metropolitan area increased by?.8108 percent between October 1, 2021 and October 1, 2022; accordingly, it is proposed that the Rose Bowl Admission Tax, the Grandstand Seat Surcharge, and the Grandstand Permit Application Fee be increased by a like amount on the Fiscal Year (FY) 2023 Revised Schedule of Taxes, Fees, and Charges as indicated below. ·
MEETING OF 12/05/2022 AGENDA ITEM NO. __ B __ _
Annual Adjustments to the Fiscal Year 2023 Schedule of Taxes, Fees, and Charges December 5, 2022
Municipal Code Section 3.12.040 - Grandstand Permit Application Tax This fee is charged for each seat in each grandstand designed or used for seating for a person viewing the Tournament of Roses parade.
Adopted Proposed
FY 2023 FY 2023
Rate Rate
Per Seat $0.78 $0.84
Minimum $49.75 $53.64
Municipal Code Section 4.48.040 - Amendment of Taxes - Rose Bowl Admission Tax
This tax is levied upon all admission tickets to the Rose Bowl.
Adopted Proposed
FY 2023 FY 2023
Rate Rate
Tax on first dollar of ticket price $0.08 $0.09*
Charge per each additional $1.00 or fractional $0.11 $0.12* part of a dollar on ticket price exceeding $1.00 Maximum Rate $1.91 $2.06
*CPI increase results in a change of greater than one half of one cent; therefore, the rate has changed.
Municipal Code Section 5.16.070-8 - New Year's Day Related Business - Grandstand Seat Surcharge
This is a special business license tax levied upon every vendor engaged in the current business of selling seats for viewing the Tournament of Roses parade.
Adopted Proposed
FY 2023 FY 2023
Rate Rate
Per Seat $6.66 $7.19
Annual Adjustments to the Fiscal Year 2023 Schedule of Taxes, Fees, and Charges December 5, 2022
COUNCIL POLICY CONSIDERATION:
The proposed actions are consistent with the City Council's strategic planning goals of maintaining fiscal responsibility, supporting and promoting the quality of life, and local economy.
ENVIRONMENTAL ANALYSIS:
This action is exempt from CEQA pursuant to State CEQA Guidelines Section 15061(b)(3), the General Rule. The General Rule can be applied when it can be seen with certainty that the activity will not have a significant effect on the environment. The proposed action is the modification of a tax or fee, and will not result in any new development or physical changes.
Annual Adjustments to the Fiscal Year 2023 Schedule of Taxes, Fees, and Charges December 5, 2022
FISCAL IMPACT:
In FY 2023, the additional revenue generated by the proposed rate adjustments will not have a material impact to the current Operating Budget. Also, there is no anticipated impact to other operational programs or capital projects as a result of this action.
Prepared by:
Admi.nistrative Analyst
Department of Finance
Approved by:
MIGUEL MARQUEZ
City Manager
Attachment: ( 1)
Respectfully submitted,
E. HAWKESWORTH
Director of Finance
1) Attachment A - Fiscal Year 2023 Schedule of Taxes, Fees, and Charges