Tag Archives: MuniServices

Ricardo Noguera Adds Economic Development Expertise to Avenu

Posted by ryder on

Ricardo Noguera has spent his career revitalizing urban areas spanning the United States, from Florida to Washington. His decades of local government experience have led to a key philosophy: Economic activity is the core of a community. Without this, a community has no heart, center or image. The following Q&A with Ricardo explains this idea.

How did you get into local government?

My father was a New York City police officer, so local government is the family business. During college I interned in various city planning departments and was drawn to community planning and development. There I saw a need to revitalize economically distressed communities.

What kept you in local government?

I get a thrill from seeing the impact of partnership between governments and businesses delivering results to communities. Watching revitalization happen requires patience, but the changes are dramatic and positively impact the lives of many within a community.

How does joining Avenu help you fulfill your personal and professional goals?

I get to solve many of the same challenges, just from a different angle. Helping communities maximize their revenues, strengthen their economies, revitalize distressed areas and attract and retain industry are the overall goals. Now, with Avenu the footprint in which I can make an impact is much larger. I work with multiple communities and city staff, and even mentor city staff where the opportunity presents itself. Plus, there are already some brilliant minds at Avenu who think deeply about local government revenues, so my internal partners on the team will make my work even stronger.

What are emerging economic development trends and issues in local governments?

On the negative side, there are fewer financing mechanisms in some areas. In California the loss of Community Redevelopment Agencies took away a great tool for revitalizing distressed neighborhoods and business districts. And states such as Texas offer many incentives to attract investment, which creates even more challenges for California.

A still-emerging issue is online sales tax reform. As Avenu explained in its recent webinar about the U.S. Supreme Court decision in Wayfair, Inc. vs South Dakota, implementation will take time as states issue guidelines and consider updating their legislation. Internet sales have been a longstanding challenge for traditional brick and mortar stores, and higher retail vacancy rates reflect that. I have even seen malls adding housing to better leverage infrastructure and create service demands for their retailers.

Regarding zoning, many cities encourage high-density residential and mixed-use developments. This revitalization strategy supports numerous restaurants, personal care and retail uses, and it dovetails with a trend toward urbanization. A 24-7 downtown community where people can live and work is very appealing to many high-tech firms and millennials.

However, other cities have different priorities, so their zoning policies may reflect industrial objectives, limited retail in a bedroom community or another focus. Economic development is about aligning the economics of a community with the goals of the community, whatever they are.

How does Avenu help local government address these trends or issues?

Avenu’s auditing solution ensures that public agencies collect the appropriate revenue and create a level playing field for all taxpayers. Economic development is a natural extension of that because we help governments maximize the value of their economic development efforts. We guide cities on zoning issues, show areas of opportunity, attract the right businesses, facilitate development, stay true to community objectives and generate sustainable revenue. In this way, Avenu is there to both help cities create taxpayers and help cities collect the taxes from taxpayers.

What are three best practices to support local businesses that lead to revenue enhancement?

First, agency staff need to get out and interact with business owners and entrepreneurs. The approach can’t be “them” and “us,” it has to be more “we.” Meeting at industry events, chamber meetings or downtown associations is important to understand and solve problems.

Second, obtain partnerships with educational institutions. College towns have received many benefits from the demand for higher education, but cities also can benefit from vocational schools and community colleges. Learning, refreshing skills and retooling a workforce is critical in a dynamic economy.

Third, partner with commercial real estate brokers and power players in the region. They know what is happening in a given location and are key influencers. Host regular events with that community and create a checklist of issues to address that may be barriers to businesses opening in your market.

What are the obstacles local agencies face in supporting local economic development activities?

Economic development requires the attention of private companies and location advisors. That requires a different skill set and attitude because cities traditionally have been monopolies that don’t need to sell to the public the water service or park access.

Also, cities tend to have more volatility at the elected official level. So, implementing a 20-year vision of economic development can hit obstacles when the city council changes members, such as going from “growth” to “no growth” policies.

Finally, platforms like Facebook and Nextdoor have greatly increased the spread of rumors and misinformation that gets neighborhood opposition more fired up and vocal. It is always important to work with stakeholders in a community when you are trying to revitalize an area, but it is also important that everyone agree on the facts of the plan or a program, rather than innuendo or falsehoods. This requires strong and proactive communications.

*

Ricardo has more than 27 years of experience in community economic development. He has represented communities throughout South Florida and, in California, Los Angeles, San Francisco, and the Central Valley.

 

 

 

Avenu Adds Local Government Executive to West Region

Posted by Melanie James on

Authored by: Avenu Insights & Analytics

Tracy Vesely Brings Experience, Leadership and Relationships

SACRAMENTO, Ca., April 23, 2018 — Tracy Vesely, a 27-year veteran of public sector leadership, has taken the next step in her career as director of client services at Avenu (formerly MuniServices). Vesely will lead Avenu in bringing the company’s revenue enhancement and administrative software and solutions to cities and counties.

Vesely’s local government experience in California includes roles in finance, economic development, policy and technology. As director of administrative services for the City of Walnut Creek her fiscal oversight brought a measure of stability during a time of transition. She also implemented an enterprise resource planning system while serving as director of finance for the City of Hayward with its $286 million budget. And in Kern County her budget oversight helped the board of supervisors make sound funding decisions that prepared the government for any volatile cycles.

“Tracy knows city and county government better than most, and she understands their growing needs to enhance revenue for communities,” says Doug Jensen, Avenu’s senior vice president. “She can offer Avenu clients insight on revenue strategies that will help them manage through the acute long-term budget challenges they face.”

Tracy’s long tenure in California jurisdictions and regular presence at industry events has led to many invitations from organizations needing her experience. For the League of California Citiesshe served as both president of the Fiscal Officers Division and as a member of the board of directors. She also has been on the economic development and capital planning committee for the Government Finance Officers Association, and has been active in the International City/County Management Association.

According to Avenu CEO Paul Colangelo, “What impresses me most about Tracy is her commitment to the colleagues and communities she serves. She is the perfect match for our relationship-based business.”

About Avenu
Avenu provides local governments with ways to achieve more predictable revenue that supports growth, fuels modernization and ensures compliance with mandated but underfunded programs. Avenu’s revenue enhancement and administrative solutions find and recover license, permit and other taxes that cities and counties struggle to collect. The insights and improved fiscal posture enables governments to deliver expected services and sustain a high quality of life for residents.

California 2018 Legislative Review

Posted by Melanie James on

With California’s legislature back from Spring Recess and in full swing, this edition, produced by MuniServices covers selected and relevant issues of importance, including those impacting local revenues.

Sales and Use Taxes/ District Taxes
Exemption (State and Local): Water Efficiency (AB 3170/ Friedman)
Exemption (State and Local): Charitable Thrift (SB 1484/ E. Hernandez)
Sales and Use Tax Credit: Bicycles: City of Santa Monica (AB 2938/ Bloom)
Sales and Use Tax: Revenue Allocation: Public Safety Services (SB 1366 and SB 1429/ Mendoza)
Exemptions: Information Required Prior to Adoption by the Legislature (SB 726/ Wiener) (Two-Year)
City of Berkeley: Transactions and Use Tax – Exclusion from 2% Cap (AB 2920/ Thurmond) Updated

To read or download the entire policy update click here. 

TOT Revenue Supports Cities in California

Posted by Melanie James on

Transient occupancy taxes (TOT) can provide tens, and even hundreds, of millions in revenue for some cities in the state. While the TOT remains an important source of revenue for local governments and often bolsters economic and community development projects, municipal leaders need to monitor and review this critical local revenue source.

MuniServices, the nation’s leading provider of local government revenue enhancement, understands this concern better than most outside of municipal staff. This year, they signed contracts with the cities of Tulare and West Sacramento to audit their TOT, and search for unreported or underreported payments from local lodging providers.

“Cities like Tulare and West Sacramento are starting another round of reviews of their lodging providers,” said Doug Jensen, senior vice president for MuniServices. “They have thriving economies, and hoteliers see the opportunities to meet the needs of business travelers who are working in the region.”

Last year, Tulare’s TOT generated more than $1.8 million in revenue. During the auditing process, MuniServices found few deficiencies in this compliance review. Minimal findings are usually a good thing. The lodging providers are doing things correctly in many cases. Like any compliance review, you never know until you do the review. But, more importantly, the hands-on training of local lodging operators helps avoid instances of underreporting in the future.

“We really have two goals in these type of contracts: 1) Find underreported and unreported revenue for our clients, and 2) Prevent underreporting in the future,” said Jensen. “Those two goals drive our engagements with municipal staff and lodging operators because they set our clients up for success now and into the future.”

West Sacramento is in a similar situation to Tulare. They are a major hub for farmers, food wholesalers and food buyers, so a good amount of their TOT revenue comes from business travelers. Because of the growth of the industry, their TOT revenue has almost doubled over the past nine years, from $872,000 in 2007 to $1.4 million in 2016. While the growth has been great for the City, it has left uncertainty about the accuracy of future TOT reporting.

“West Sacramento has made a lot of really good investments in developing their economy and community. As in the case of Tulare, MuniServices’ goal is to protect their revenue both now and in the future, so the City can continue to make those investments,” said Jensen. “In the end, it’s about dollars and cents, and every little bit helps when you have good goals and projects that you need to pay for.”

MuniServices is a leading provider of revenue enhancement and recovery for local municipalities. With over 900 cities, counties, special districts, and states as clients, MuniServices is the only firm in California and throughout the United States to offer proprietary revenue recovery, audit and administration services encompassing all general sources of municipal tax revenue. Learn more at muniservices.com.

MuniServices Welcomes Thomas Adams

Posted by Melanie James on

MuniServices has recruited Thomas Adams, a longtime employee of California municipalities, as its newest business development executive. 

Adams, immediate past economic development director for the City of San Rafael, will be a liaison between MuniServices and municipalities, connecting with new clients and building upon relationships with existing ones.

“I am fascinated by what makes cities similar to and different from each other, and I can’t wait to use MuniServices’ resources to learn what makes them tick from the perspective of revenue,” said Adams. “MuniServices has been building technology for the future: technology that considers the shrinking budgets that local governments must overcome to better serve their communities. I am honored to join the team.”

Adams will connect with cities throughout California to understand their standing, identify revenue streams and introduce technology solutions that can increase their revenue.

“We are thrilled to welcome Tom,” said Doug Jensen, senior vice president for MuniServices. “He has a deep appreciation of revenue models and understanding of the strife’s of local governments. I am confident in his ability to strengthen ties with the cities that MuniServices serves.”

Having worked in every department with the exception of public safety, Adams’ career spans the breadth of local government. Approximately 10 years of conducting quarterly sales tax audits ignited his fascination with the field.

Before joining MuniServices, the nation’s leading provider of local government revenue enhancement, Adams helped revitalize San Rafael’s downtown as the City’s economic development coordinator. He contributed to planning, public outreach, pre-development analysis, site selection assistance, recruitment and retention efforts to fill vacant building spaces and drive business to the community. As a senior management analyst for the City of Novato, he managed city-owned real estate assets and worked on redevelopment projects.

Adams, who began his career in municipal government as special assistant to the director for the City and County of San Francisco, also served the City of La Canada Flintridge as a management analyst. He holds a B.A. in history from the University of California, Berkeley, and and an M.P.A. in public administration from the University of Texas, Austin.

Collectively, his knowledge and experience in local government will contribute to his work at MuniServices.

“I am eager to learn about our clients’ concerns and needs,” continued Adams. “Every city is different, but with MuniServices’ range of services, we are certain to provide the right solutions and have a positive impact.”

Former L.A. Tax Auditor Continues Services at MuniServices

Posted by Melanie James on

For the past six years, Karo Aydindzhyan served as a tax auditor for the City of Los Angeles, and was deeply entrenched in how much the City collected tax revenue from. That experience and knowledge is being used to help municipalities across California as Karo recently made the jump from the City of Los Angeles to MuniServices, one of the nation’s leading providers of municipal revenue enhancements.

“My time with Los Angeles was very good and, my work was important. I oversaw field audits of corporations and individuals, and validated the accuracy of their tax payments. This work is extremely important in ensuring the City can operate effectively. While it was very fulfilling, joining MuniServices gave me the opportunity to continue my work in a greater capacity. I’m now able to help multiple cities and counties enhance the revenue they need to keep the lights on and police on the streets,” said Karo Aydinzhyan.

This in depth local tax experience was instrumental in the decision by MuniServices’ Senior Vice President Doug Jensen to hire Karo on as a client services manager. In the new role, Karo will represent the company throughout Southern California, and help more than 40 clients utilize the company’s range of financial management and revenue enhancement tools and services.

“During my experience working for the largest municipality in California, I was intrigued by the multitude of products and solutions MuniServices had to offer its clients,” said Karo. “From revenue auditing and forecasting, to its new line of revenue collections services, MuniServices is unmatched by any other company of its kind. But what really inspired me was that all of these services are vital for municipalities. They need this kind of help and I’m excited to be a part of that.”

MuniServices audits, administers and collects over 23 different types of taxes and fees for more than 500 municipal agencies. The company has had great success in helping municipalities recover more than $2.4 billion in tax and fee revenue, and has recently developed RevCollections, a new online platform that allows municipalities to issue electronic tax statements and collect payments through a web-based portal.

“We are very happy that Karo decided to join our team. We take pride in hiring talented people who have a great amount of experience and knowledge about financial management and municipal revenue. On top of that, Karo is a great guy to work with. He is a natural and good fit, and we know he will serve our clients extremely well,” said Doug Jensen.

“I know firsthand how important our work is. I want to build good relationships with our clients, and help them get the most value from us. But more importantly, I want to work with municipal leaders who need our help, and help them get the revenue and information they need to better serve their residents and business communities,” said Karo.

Enforcement Approach is the Key to Success in UUT Compliance Efforts

Posted by Melanie James on

Healthy profit margins are essential to the success of all businesses. Even non-profits and municipalities have a vested interest in protecting essential revenues. For more than 30 years, MuniServices, one of the nation’s leaders in maximizing municipal revenues, has helped client jurisdictions work with local utility providers to ensure the accuracy of utility user tax (UUT) revenues they receive.

Auditing financial data requires a great amount of time and technical knowledge for even seasoned professionals to complete. While coordinating document and data requests from external agencies may multiply this effort, a collaborative approach between local jurisdictions and utility providers is essential to a successful audit. This is also the highest priority for MuniServices when working on behalf of client jurisdictions.

“Utilities are understandably guarded about the information they give out, especially when it involves any financial data,” said Steve Quon, a utility user tax manager for MuniServices. “For many of our clients, we explain that utilities need time to get the information we request. Often, one request could touch a dozen people who collect, review and approve the information we need.”

To help set reasonable expectations, MuniServices recommends that cities and counties consider two guidelines in working with local utilities:

  1. Understand that utility providers have internal protocols to follow. It’s not unreasonable for them to protect their corporate interests. That means turning over any kind of financially binding documents will take extra time because they need to be reviewed by accounting, operations and legal departments.
  2. Municipalities need to be open to developing enforcement subpoenas, preliminary notices of determination or preliminary tax assessments as viable options in order to receive needed information. Often, we prepare preliminary tax projections based on available information. This also serves as an impetus for the utility provider to more thoroughly review the amount of UUT they owe, and prove what they owe is correct.

“The preliminaries act as a motivator for the utility to respond,” said Quon. “If they don’t, they would have to pay whatever the assessment states. The utility provider may see the preliminary tax assessment as overvalued which incentivizes them to communicate and work with our team. It becomes a higher priority to them.”

According to Quon, working with utility providers is always professional but requires continual two-way communications to minimize ambiguity and resolve issues as they arise.

“It always comes down to doing your due diligence to analyze and figure out if the utility provider is accurate in their reporting,” said Quon. “If we think they aren’t, then we have a set of tools to move the audit process along. But we always give them a reasonable amount of time to get it right.”

MuniServices, LLC. Renews Sponsorship of CCMF

Posted by Melanie James on

The California City Management Foundation announced that MuniServices, LLC. has renewed their commitment to supporting the state’s city management community with another year as a Corporate Benefactor sponsor. MuniServices, LLC. provides revenue compliance services to local government agencies throughout California and beyond. Cities partner with MuniServices to ensure fair and accurate collection of sales and use taxes, user utility taxes, property taxes, franchise fees and hotel taxes. The partnership results in increased revenue for the City and fair treatment for all businesses in the community without raising tax rates. MuniServices backs up its expertise with a government relations group that monitors, reports and seeks to address ruling and legislation coming from Sacramento that impact city revenues. MuniServices has been a proud partner of the California Contract Cities Association for many years.

“Thank you to our Board of Trustees member Fran Mancia and the rest of MuniServices for continuing its rock-solid support of the California City Management Foundation and its members. It is great to have a like-minded partner in our mission to empower the state’s local government leaders.” – Wade McKinney, CCMF President

CCMF corporate sponsors enjoy a number of benefits including sponsorship recognition on the CCMF website, access to the CCMF weekly electronic newsletter, and invitations to members-only activities and special events at the annual League of California Cities City Manager Department conference. Corporate membership fees start at just $1,250. Click/tap here to learn more.

MuniServices Helps Cities Surface Additional Financial Resources

Posted by Melanie James on

Brea, a commercial powerhouse with a “small town” feel, is an Orange County community of more than 42,000 located just southeast of Los Angeles. As local jobs begin to outnumber residents, the City, celebrating its Centennial in 2017, strikes a balance between upholding its prized, family-centered services and programs, and implementing innovative infrastructure upgrades that have attracted residents and businesses alike.

“Celebrating our Centennial has inspired us to acknowledge our interesting past, appreciate our present innovation and work toward a sustainable, successful future,” said Brea City Manager Bill Gallardo. “More than ever before, we recognize the need to draw upon as many financial resources as possible to fund beloved programs and services while supporting key infrastructure improvements.”
Second in sales tax per capita in Orange County, Brea draws nearly 40 percent of its General Fund Budget from sales tax. Brea is a full-service city that provides its own police, fire, water, street and sanitation services, in addition to robust community programs that support recreation, education and volunteerism. By identifying additional sources of sales tax income—in collaboration with MuniServices, a leading municipal tax auditor—the City is able to make the needed investments to ensure it operates smoothly.

“MuniServices is pleased to partner with the City of Brea to identify opportunities for increased sales tax revenue,” said Julia Erdkamp, Client Services Manager for MuniServices. “Brea is a very business-friendly City, so we work hard to create a win-win environment for the City, businesses, and this wonderful community.”

As the City’s sales tax consultant, MuniServices meets with city staff each quarter to audit sales tax receipts and provide economic updates, such as sales tax trends and information on potential legislation and untapped resources.
One way MuniServices helps the City bolster its budget is by identifying local businesses that incorrectly file sales tax receipts. MuniServices works with the State Board of Equalization to petition the identified account to update the business address and tax area code, ultimately correcting the misallocated fund.
The City uses MuniServices for its discovery services. Through its process, the auditor identifies unlicensed businesses that operate in the City and collects licensing fees, arrears and other additional fees that may be owed. Collectively, these efforts contribute to thousands of dollars in increased sales tax revenue.
MuniServices’ sales tax projections have helped guide the City’s budgeting, and are helping staff plan for economic expansions and contraction. By expanding the City’s General Fund Budget with additional sources of sales tax revenue, MuniServices’ work enables the City to provide crucial services and programs to the Brea community.
MuniServices is a leading provider of revenue recovery services. With over 900 cities, counties, special districts, and states as clients, MuniServices is the only firm in California and throughout the United States to offer proprietary revenue recovery, audit and administration services encompassing all general sources of municipal tax revenue. Learn more at muniservices.com.

“No One-Size Fits All” as State Leaders Discuss Cannabis in California

Posted by Melanie James on

Banking, taxes and marijuana were the topics of discussion as municipal and industry leaders gathered September 15 to talk about local impacts of the cannabis industry during the League of California Cities’ Annual Conference in Sacramento.

Fran Mancia, MuniServices’ vice president of government relations, along with California Board of Equalization Member Fiona Ma, CPA, and Hezekiah Allen, executive director of the California Growers Association, spoke to more than 120 people on how the State is working with the cannabis and financial services industries to bring conformity and consistency into the complex, and now legal, cannabis industry in California.

During the discussion, Board Member Ma detailed the difficulty cities have in auditing dispensaries, noting banks, credit unions and accountants will not work with the cannabis industry because of the drug’s status as a Schedule 1 narcotic. “They do not want to inadvertently find themselves being investigated by the U.S. Justice Department,” she said.

“The handling of cash seems to be one of the biggest concerns we see,” said Mancia, whose firm works with cities and counties to develop and implement cannabis ordinances. “The lack of banking and professional accounting has caused a lot of issues for the cannabis industry. Some dispensaries are still using pencil and paper to do their bookkeeping, and often keep tens of thousands of dollars in cash on hand because they have no business bank account.”

In addition to banking, the panel also raised the issues cities are having in determining what to allow and how much to tax and charge industry businesses.

“Cities need to develop ordinances and policies that are good for them,” said Mancia. “There is no one-size-fits-all. Every jurisdiction has to tailor their ordinances and determine how they want to tax and charge the industry.”

While fees and taxes are critically important in paying for industry enforcement and generating needed revenue for local municipalities, panelists reminded attendees not to overtax or over-burden the industry.

“Business license taxes have worked well. Gross receipts are another good way, but they do fluctuate,” said Mancia. “On the growth and manufacturing side, you could charge a tax for square feet of space, but be careful how much you tax. It’s very easy to tax businesses into the underground economy.”

“A 25-30 percent effective tax rate is the rate at which we see the industry start to be pushed back into the underground,” said Allen, whose association represents growers and independent businesses within California’s cannabis industry. “The State starts at a 22 percent rate, so cities do not have much wiggle room for what they can do before pushing the market back underground. We like the square-foot license and tax model, but cities could also look at the expected production of the business and tax them based on output.”

As Proposition 64’s January 1, 2018, deadline fast approaches, many cities are still struggling to develop enforceable ordinances to regulate the recreational cannabis industry. Since November 2016, some cities have proactively worked with their cannabis industry to curtail foreseeable issues. MuniServices has worked extensively with Cathedral City to help cannabis manufacturers, transporters and retailers comply with tax levies and municipal codes by helping them prepare for audits.

“In Cathedral City, we are showing dispensaries what we look for when we audit them and how to properly record and manage their inventory and sales so they do not run into issues,” said Mancia. “The goal is to make enforcement of the industry as easy and streamlined as possible so that our clients can dedicate their resources to enforcing bigger issues.”

“The starting point for regulation is getting to know each other. Build bridges and find common ground to create real policies to move forward,” said Allen.

MuniServices is a leading provider of revenue enhancement and recovery for local municipalities. With over 900 cities, counties, special districts, and states as clients, MuniServices is the only firm in California and throughout the United States to offer proprietary revenue recovery, audit and administration services encompassing all general sources of municipal tax revenue. Learn more at muniservices.com.