In February 2020, BERK Consulting gave the City Council a presentation on the City’s General Fund 8 year forecast, and identified some of the fiscal sustainability issues.  In March 2020 the Council participated in a Council retreat where they explored the reasons for the sustainability issues BERK presented.  They studied, in depth, several different strategies to remain financially proactive.  Based on the Council’s analysis, several strategies were identified and were built into the City’s 2021-2022 Biennial Budget, which was adopted on November 16, 2020.

Since this time Council has reviewed several different B&O models for consideration, and has reviewed the impact analysis of several different strategies on the February 22, 2021, March 22, 2021, and April 12, 2021 study sessions.  The final version of the Business and Occupation Tax Code for Council consideration is expected to generate approximately $5.3 million per year to support general fund operations and services.  The code includes the following main tenets:

1. A gross receipts tax applied to businesses that generate gross revenue in excess of $500,000 per calendar year;
2. A tiered gross receipts tax rate as follows: .05% for retail, .15% for services, .18% for wholesale, and .1% for manufacturing and other businesses;
3. A square foot tax for warehouse space exceeding 4,000 square feet, of $0.10 per square foot per quarter; and
4.  Tax credits available for new businesses and businesses within the Auburn Business Improvement Area