Title
Recommendation to Authorize the City Manager to Execute a Five-Year Agreement with MuniServices, LLC in an Amount Not to Exceed a Total Five-Year Expenditure of $375,000 for Utility Users Tax Ordinance Implementation and Audit of Utility Users Tax Revenue. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Authorize the City Manager to Execute a Five-Year Agreement with MuniServices, LLC in an Amount Not to Exceed a Total Five-Year Expenditure of $375,000 for Utility Users Tax Ordinance Implementation and Audit of Utility Users Tax Revenue
BACKGROUND
The Utility Users Tax (UUT) is a general tax that was originally adopted in 1972 and applies to the consumption of electricity, gas, cable and telephone services. The rate is set at 7.5% and represents approximately 10 percent of the City's annual General Fund revenue. In 2016, the UUT Ordinance was revised and placed by the City Council on the November 2016 ballot and was successfully passed by the City of Alameda voters.
DISCUSSION
The Utility Users Tax is the City's third largest source of General Fund revenue. Utility Users Tax accounts for $9.5 million or 10% of General Fund revenue. The tax is imposed on the consumption of the utility services such as electricity, gas, cable television and telephone (including cell phones and prepaid phones).
MuniServices provides UUT audit services for over 70 municipal clients in California, representing approximately 70% of all UUT revenues collected in the state. With over 27 years' experience, MuniServices UUT services focus on all utility providers, and identifies and corrects errors and omissions that cause revenue deficiencies.
MuniServices also offers a dedicated Government Relations team to provide policy, regulatory and legislative consulting support and will provide revenue forecasts and management reports on an annual basis that outline the year's activities in re...
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