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CIOSI Potential Reduction or Elimination of Food Tax November 8, 2022 2 Scope 1) A history of the FFHC tax, effective date; any sunset provision. 2) Information on which other cities have a tax on FFHC. 3) The amount collected for FFHC for the past five fiscal years. 4) The dollar amount of revenue lost for each .1% of a potential tax decrease. 3 Scope 5) The amount of sales tax generated by Construction Contracting for the past five fiscal years. 6) The amount of revenue generated by permitting fees for the past 5 fiscal years. 7) An analysis of what impact a reduction in the tax rate on FFHC would have on the budget and how the city could make up for it. 4 Steps • Data collection • Prepare Workshop with Council • Prepare second Workshop on Council priorities for budget cuts • Work with departments to determine budget cuts based on Council priorities 5 Steps - continued • Workshops with Council on budget cut options • Public outreach • Finalize budget cuts in a voting meeting 6 Timeline and Level of Effort • Estimated 27-31 weeks • Estimated 762 Manhours • Timeline would be significantly reduced if made part of the budget process, not a separate effort • Staff research approximately 80 hours 7 Questions/Consensus