TO: LINDA REICH, CITY MANAGER
FROM: ROB BURNS, DIRECTOR OF FINANCE
SUBJECT
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Administration and Examination of Records of the Local Transaction and Use Tax (Measure V).
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RECOMMENDATION
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Approve 1) Adopt Resolution No. 2024-015 authorizing the City Manager to execute agreements with the California Department of Tax and Fee Administration to implement a local transaction and use tax; 2) adopt Resolution No. 2024-016, rescinding Resolution No. 2003-32 and authorizing examination of sales or transactions and use tax by City officials and an independent contractor; 3) approve a contract between HdL Companies and the City of Chino for the administration of the City's 1% Transaction and Use Tax (Measure V); and 4) authorize the establishment of Fund 103 titled Measure V 2024.
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FISCAL IMPACT
The implementation of Measure V will result in approximately $28 million in revenue for the City's General Fund (Fund 103). There is an estimated cost of $175,000 payable to the California Department of Tax and Fee Administration (CDTFA) that was appropriated on November 21, 2023. Lastly, there is a cost of $2,400 annually with Hinderliter deLlamas & Associates (HdL Companies) for the administration of the Transaction and Use Tax.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City's values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
* Positive City Image
* Financial Stability
* Responsible Long-Range Planning
Revenue: 1031000-51310
Expenditure:
Transfer In:
Transfer Out:
BACKGROUND
On Tuesday, March 5, 2024, the voters of the City of Chino approved the local 1% sales tax increase (Measure V). This sales tax measure was a general-purpose tax taking effect on approximately July 1, 2024. This tax will generate approximately $28 million annually in revenues for the City's General Fund. The passage...
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