I. RECOMMENDATION:
Financial Services Director requests approval of agreement with Hinderliter, de Llamas and Associates (HdL) for Sales and Use Tax Audit and Information.
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.
City Manager and Financial Services Director will meet with HdL staff quarterly to review the Sales and Use Tax reports for the quarter completed.
IV. ALTERNATIVES:
None.
V. FISCAL IMPACT:
The fiscal impact to the general fund will be a contract price of $525 per month and 15% recovery fee of the initial amount of new sales 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 sales and use tax recovered could off set the cost of this contract. |