HomeMy WebLinkAbout2001-04-10 - AGENDA REPORTS - AUTO SHOP LOCAL CAMPAIGN (2)CITY OF SANTA CLARITA
AGENDA REPORT
City Manager
Item to be present(
NEW BUSINESS
DATE:
April 10, 2001
SUBJECT: AUTOMOBILE SHOP LOCAL CAMPAIGN
DEPARTMENT: City Manager
RECOMMENDED ACTION
Approve participation in Public / Private Shop Local partnership with Santa Clarita
Valley Automobile Association.
Approve budget transfer of $30,000 from City Council Contin
BACK -
7401 to Economic Development account number 1811-
8110.
gency account 1240-
Sales tax revenues from auto sales represent between 20 to 30% of the City's total annual
tax revenues. However, past research conducted by the City indicates that about 48% of
local residents are making their auto purchases outside the Santa Clarita Valley.
In order to increase the number of new auto purchases by our local residents, a shop local
campaign is being proposed in conjunction with the Santa Clarita Valle
Association. This Shop Local campaign
be developed around a p would be targeted at local residents, nd would
message that shows the additional benefits to residents of
a local purchase. Additional sales tax revenues generated locally will be reinvested back
into our community in the form of increased public improvements and services, Tax
dollars are lost when purchases are made outside the valley.
The goal of this campaign will be to discourage the number of resident car
rchases
outside of the valley, and to increase the overall sales
within the valle performance le our l auto
y. The City will contribute $30,000 and the auto dealers will contribute
$126,000 for a period of 6 months.
n'� Agenda Item •
ALTERNATIVE ACTION
Other action as determined by City Council.
FISCAL L IMPACT
As proposed, this shop local campaign should have a positive fiscal impact to the
City by increasing overall auto sales and subsequent sales tax revenues to the City.
The City's investment would break-even at 120 new car purchases. The auto dealers
would benefit from additional car sales and local residents would benefit from
additional sales tax revenue, which can be reinvested back into the community.
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