AgdaPkt 2019-01-14 Joint SA PFA - Laserfiche WebLink

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6.F. - Page 1 of 47 /<�ik Redwood CitylCallifornia Faunded 1867 Ago/ DATE: January 14, 2019 SUBJECT STAFF REPORT To the Honorable Mayor and City Council From the City Manager Implementation of new district transaction and use tax (local sales tax) approved by Redwood City voters on November 6, 2018 RECOMMENDATION 1. Waive second reading and adopt an ordinance of the City of Redwood City adding to the Redwood City Municipal Code Chapter 32, Article XI establishing a local transaction and use tax for general city purposes; and 2. Adopt a resolution authorizing the City Manager to execute the necessary agreements with the California Department of Tax and Fee Administration in order to prepare for and administer the City's Transactions and Use Tax Ordinance; and 3. Adopt a resolution authorizing the examination of Transactions and Use Tax Records; and 4. By motion, approve and authorize the City Manager to execute the Agreement for Preparation to Administer and Operate City's Transactions and Use Tax Ordinance with the California Department of Tax and Fee Administration; and 5. By motion, approve and authorize the City Manager to execute the Agreement for State Administration of City Transactions and Use Taxes with the California Department of Tax and Fee Administration. STRATEGIC INITIATIVE Government Operations BACKGROUND Redwood City has balanced its budget consistently for many years but faces a structural deficit in the years ahead. This deficit, driven primarily by state -mandated increases in pension costs, is projected to reach more than $12 million annually in five years. The City has taken a proactive approach to addressing this through staffing cuts, increased employee contributions to pensions and maximizing fees charged to City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 77