REPORT TO THE CITY COUNCIL
DATE: January 7, 2021
FROM: MICHAEL LIMA, Controller/Finance Director
Finance Department
SUBJECT
Title
Amendment to Agreement with Economic Planning & Systems, Inc. in the Amount of $10,230 for an Analysis of the City/County Property Tax Sharing Agreement
Body
RECOMMENDATION
Staff recommends that Council approve an amendment to the contract with Economic Planning & Systems, Inc. (EPS) in the amount of $10,230 for an analysis of the City/County Property Tax sharing agreement.
EXECUTIVE SUMMARY
The City of Fresno (City) and Fresno County (County) have been negotiating a new Property Tax sharing agreement over the past three years. As part of those negotiations, the City enlisted EPS to prepare an analysis which showed the monetary value of the services provided by the City and the County to residents within the Fresno city limits as compared to the Property Tax revenue each of those entities receives. The study showed that the County receives more in Property Tax revenue than it provides in services. In response to this study, the County commissioned a Property Tax study from DTA, Inc. (DTA). The DTA study showed the County was providing services to Fresno city residents at a monetary loss. In order to address the findings in the County's report, EPS has agreed to draft a response as an amendment to the original contract. As the proposed response would bring the total value of the engagement over the $50,000 threshold for consultant agreements, Council approval is needed for this amendment. Staff recommends approval of this amendment with EPS.
BACKGROUND
The City and the County have been negotiating a new Property Tax sharing agreement for the past three years. The previous tax sharing agreement, which was enacted in 2003 for a 15-year period, was extended while City and County staff continued negotiations. That agreement officially expired in August 2020 with the end of the final extension's term.
A major st...
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