HomeMy WebLinkAbout2001-11-27 - AGENDA REPORTS - AUTO SHOP LOCAL CAMPAIGN (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager
Item to be pre:
DATE: November 27, 2001
SUBJECT: AUTOMOBILE SHOP LOCAL CAMPAIGN
DEPARTMENT: City Manager
RECOMMENDED ACTION
Approve renewal in the public/private shop local partnership with the Santa Clarita Valley
Automobile Association.
Approve a budget transfer of $30,000 from City Council contingency account number 1240-7401
to Economic Development account number 1811-8110.
BACKGROUND
Currently, new motor vehicle sales represent approximately 23% of the City's annual sales tax
revenues. Yet our research shows that over 40% of Santa Clarita residents purchase their cars
outside of the valley.
In April, the City Council approved $30,000 for the Economic Development Division to implement
a 6 -month shop local advertising campaign in partnership with the Santa Clarita Valley
Automobile Association. The results of the campaign have been very promising with a 27%
increase in car sales and an estimated 17% increase in auto service department activity.
In order to sustain these increases and to further penetrate the 40% market share of outside
purchases, a 6 -month renewal of the $30,000 shop local campaign is being recommended for
consideration.
ALTERNATIVE ACTION
Other action as determined by the City Council.
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 sales tax revenue, which can be reinvested back into the community.
ccagenda/11-27-01/autodealers.doc
Agenda Item: 021