The Colusa County Board of Supervisors last week said the cost of a consultant to analyze sales tax allocations has already paid for itself.
A wary board approved the $7,200 per year contract with Hinderliter de Llamas and Associates for sales tax or other funding mechanism analysis last February, largely to help with the analysis needed to consider whether to put a sales tax measure before voters in November to fund ambulance services.
While the contract with HdL automatically renews each year, Chief Administrative Officer Wendy Tyler brought the option to terminate the agreement (with 120 days notice) to the board to consider, now that the analysis for the tax measure has been completed.
“They were very helpful in working the numbers for the Measure A – ambulance tax,” Tyler said. “They assisted with the review of the impartial analyses that were done by both the auditor and county counsel for the ballot measure.”
But officials said keeping the contract going has additional perks.
In the short time the county had HdL under contract, the company provided two quarterly reports on sales tax allocation, assisted with sales tax projections for the 2022/23 budget, and provided the county with data concerning the impacts pending legislation may have on Colusa County revenues, specifically AB 1951, which, if Gov. Gavin Newsom signs it into law by the Sept. 30 deadline to act on new bills, would result in the loss of sales tax (realignment) funding for public safety by exempting the local share of sales tax for manufacturing companies that buy equipment.
More importantly, officials said, HdL identified two businesses operating in California whose sales tax revenues were not being allocated correctly to Colusa County, resulting in a revenue increase annually in excess of $20,000.
“One of the things they bring to the table is they monitor, routinely, how sales taxes are remitted by businesses within the State of California to make sure jurisdictions are getting the correct amount of sales tax,” Tyler said. “It’s an ongoing process they go through.”
While the contract with HdL costs the county $600 a month, at a time when officials are looking to slash the 2022-2023 budget by nearly $2 million, the board agreed it was best to keep the contract in place to have the company provide those services.
“The $20,000 they found is ongoing, so they are paying for themselves already,” said Supervisor Kent Boes, who also acknowledged that Hdl could find taxes that came to Colusa County that were supposed to go to another jurisdiction, although the probability was not high.
Officials said because of the number of counties HdL contracts with, the company will also be able to notify Colusa County of trends and shifts in sales tax generation, which could be a useful “extra set of eyes.”
“I would like to see us continue this agreement…,” said Supervisor Denise Kalfsbeek Smith. “I think it is really important to have a third party looking over what we have coming in because we don’t have the resources ourselves to be able to do that.” ■