Item Coversheet

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE AUTHORITY

Subject:Approve Agreement with Hinderliter, de Llamas and Associates (HdL) for Transactions and Use Tax (Measure “J”) Audit and Information Services And Approve Resolution No. 3917 Grant Authority To Examine State Board of Equalization Confidential City of Coalinga Transaction and Use Tax Records
Meeting Date:October 10, 2019
From:Marissa Trejo, City Manager
Prepared by:Jasmin Bains, Financial Services Director


I.    RECOMMENDATION:

Financial Services Director requests approval of agreement with Hinderliter, de Llamas and Associates (HdL) for Transaction and Use Tax (Measure “J”) Audit and Information Services and approve Resolution No. 3917 to grant authority to examine State Board of Equalization confidential City of Coalinga Transaction and Use tax records. 




II.    BACKGROUND:

HdL currently provides sales and use tax revenue management services for the City since 2000 and the reports are very helpful in revenue management and business license fee recovery.  HdL has been continually updating its review and analytic procedures and will provide staff with a wide variety of reports that are straight-forward and easy to use.  The firm has also enhanced its ability to provide information and analysis very quickly after the close of each quarter.




III.   DISCUSSION:

Services include verification of proper revenue allocations and payments to the City, and appropriate follow-up and recovery efforts when it appears there are errors or under-payments.  The databases HdL uses to perform these revenue management functions also generate economic activity reports can be used by City departments for budgeting and economic development efforts. 




IV.   ALTERNATIVES:

None.

V.    FISCAL IMPACT:

The fiscal impact to the general fund will be a contract price of $200 per quarter and 25% recovery fee of the initial amount of new transactions and use tax revenue received by the City as a result of audit and recovery work performed.  Given the different analytic resources employed by HdL, it is possible that the amount of transaction and use tax recovered could off set the cost of this contract. 


ATTACHMENTS:
File NameDescription
RESO#3917_HdL_Sales__Use_and_Transactions_Tax_Audit_and_Information_Services-Measure_J.pdfReso#3917 HdL Sales, Use and Transactions Tax Audit and Information Services-Measure J
Coalinga_2019_TT_Measure_J_Agreement.pdfHdL TT Measure J Agreement