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

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6.F. - Page 3 of 47 b. The City Manager or Assistant City Manager to designate, in writing, any other position titles, the authority to examine the City's transactions and use tax records; c. The City Manager or Assistant City Manager to designate, in writing, that certain staff is able to examine transactions and use tax records for purposes related to specific governmental functions; and d. The City's Revenue Enhancement consultant, currently MuniServices, LLC, the authority to examine the City's transactions and use tax records. D. Agreement for Preparation to Administer and Operate District's Transactions and Use Tax Ordinance. In order to implement a newly -adopted transactions and use tax, the CDTFA must perform the appropriate preparatory work including developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the CDTFA's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance. The preparatory costs the City must cover shall not exceed $175,000. E. Agreement for State Administration of City Transactions and Use Taxes. This agreement between the City and the CDTFA states that the CDTFA will exclusively perform all functions incident to the administration and operation of the City Ordinance. The above resolutions and agreements, in the form prescribed by the CDTFA, must be approved by the City Council and returned to the CDTFA by February 1, 2019 so that the new tax can be implemented by April 1, 2019. The Transactions and Use Tax Ordinance must be adopted by the City Council and returned to the CDTFA by February 1, 2019 so that the new tax can be implemented by April 1, 2019. FISCAL IMPACT The CDTFA will bill the City for their preparatory costs periodically, with the final billing to occur within a reasonable time after the operative date of the Ordinance (April 1, 2019). The amount billed shall not exceed $175,000 pursuant to Revenue and Taxation Code Section 7272. This expenditure is not included in the FY 2018-19 Adopted Budget. A mid -year budget amendment for this amount will be submitted to the City Council in February 2019. In addition, due to the sales tax increase, it is estimated that additional sales tax revenue of approximately $2.0 million will be generated in the fourth quarter of FY 2018-19, or April through June 2019. This revenue is not included in the FY 2018-19 Adopted Budget. A mid -year budget amendment for this amount will be submitted to the City Council in February 2019. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. PUBLIC NOTICE Published notice of ordinance adoption on January 11, 2019 in the Palo Alto and Mid -Peninsula Daily Post. City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 79