TO: Honorable Mayor and Members of the City Council
FROM: Jarad Hildenbrand, City Manager
1. SUBJECT
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Vehicle Incentive Program Discussion
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2. SUMMARY
The draft Vehicle Incentive Program (VIP) would provide rebates to Orange residents and businesses that purchase or lease vehicles from participating Orange auto dealerships. The program is intended to encourage residents and businesses to make large retail purchases locally in order to support local jobs, local dealerships, and the City's sales tax base.
3. RECOMMENDED ACTION
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1. Discuss the draft Vehicle Incentive Program.
2. If the City Council wishes to move forward with a Vehicle Incentive Program, direct City staff to prepare an economic development subsidy report and schedule a public hearing to consider approval of the Vehicle Incentive Program, contingent upon voter approval of any future transactions and use tax increase.
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4. FISCAL IMPACT
There is no fiscal impact associated with tonight's discussion. As proposed, the annual program would cost $1,600,000, with $1,550,000 allocated for rebates and $50,000 set aside for outreach and program administration. This draft program is entirely contingent upon Orange voters approving any potential transactions and use tax (sales tax) increase.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance Economic Development and Achieve Fiscal Sustainability.
6. DISCUSSION AND BACKGROUND
Shop local programs encourage residents to support local businesses by spending their dollars in Orange. By choosing to shop local, residents can support local jobs, local property investment, and local public services such as police, fire, parks, and libraries. Vehicle purchases are among the largest taxable retail purchases many residents make. Encouraging those purchases to occur within Orange can help retain local sales tax revenue that might otherwise be lost to neighboring jurisdictions or lost to neighboring jurisdictions and competing regional market...
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