Title
Recommendation to Award a Five-Year Contract for an Amount not to Exceed a Total Five-Year Expenditure of $250,000, Subject to Budget Approvals, to Hinderliter de Llamas (HdL) for Review and Analysis of Sales and Use Tax Revenues. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Award a Five-Year Contract for an Amount not to Exceed a Total Five-Year Expenditure of $250,000, Subject to Budget Approvals, to Hinderliter de Llamas for Review and Analysis of Sales and Use Tax Revenues
BACKGROUND
Hinderliter de Llamas (HdL) has been performing Sales and Use Tax consulting services for the City for the past seven (7) years. HdL is a state-wide expert in Sales and Use Tax data analysis with 348 public agency clients for whom such services are performed and has the programs, equipment, data and personnel required to deliver the sales and use tax services. HdL performs continuous monitoring, identification, detailed analysis and reconciliation of Sales and Use Tax revenues of the Board of Equalization (BOE) records for the purpose of ensuring that the City receives the appropriate Sales and Use Taxes. Effectively managing the city's Sales and Use Tax helps the City in fiscal, economic and community development planning.
DISCUSSION
Sales and Use Tax is the City's second largest source of General Fund revenue. Sales and Use Tax accounts for $9.65 million or 11% of General Fund revenue. Sales and Use Tax is levied on retailers who sell or rent tangible personal property. The local share (Bradley-Burns 1%) is distributed to the jurisdiction where the sale is negotiated or the order is taken. The City of Alameda receives 95% of the 1% Bradley-Burns Sales and Use Tax. The remaining 5% goes to Alameda County. Sales Tax does not apply to the sale of real property or to services that do not result in a finished product.
The consulting services offered by HdL would include filing...
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