(A) The City may offer annual performance-based cash incentives based upon a percentage of actual payroll withholdings for industrial and/or Advanced Technology Companies providing a minimum of thirty (30) new jobs and/or minimum payroll of $1.5 Million (Z). The incentive shall be recommended by the Economic Development Director and approved by a majority approval of the Mayor, Auditor and Law Director. Approval may be provided in person, electronically, or by telephone. The period/duration (Y) will be 1 to 10 years with an incentive range (X) of 10% to 50%.
(B) The City proposes annual incentive payments based upon a percentage (the Incentive Factor) of employee annual withholdings (2.20% of wages). The City proposed an Incentive Factor of (X%) on employee withholdings (net of refunds) for (Y) years. This offer assumes and requires a minimum (Y) year production term.
(Y) Period of 1 to 10 years
(X) Range of 10% to 50%
(Z) Minimum thirty (30) new jobs and/or a minimum payroll of $1.5 million
Year | Target Payroll | Target Withholdings | X% Payment |
20 | $ min. (Z) | 2.20% of Z | X% of Target Withholding |
20 | $ min. (Z) | 2.20% of Z | X% of Target Withholding |
20 | $ min. (Z) | 2.20% of Z | X% of Target Withholding |
20 | $ min. (Z) | 2.20% of Z | X% of Target Withholding |
20 | $ min. (Z) | 2.20% of Z | X% of Target Withholding |
20 | $ min. (Z) | 2.20% of Z | X% of Target Withholding |
20 | $ min. (Z) | 2.20% of Z | X% of Target Withholding |
20 | $ min. (Z) | 2.20% of Z | X% of Target Withholding |
20 | $ min. (Z) | 2.20% of Z | X% of Target Withholding |
20 | $ min. (Z) | 2.20% of Z | X% of Target Withholding |
TOTAL | $ Sum of this Column | ||
If the annual “Target Payroll” is exceeded in any given year, the annual incentive payment would increase based on the formula above. If the annual “Target Payroll” is missed in any particular year, no payment is made for that year; but does not preclude the company from receiving payments in other remaining years. (Ord. 32-23. Passed 11-27-23.)