Laserfiche WebLink
<br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br /> <br />Ma 20 2002 <br /> <br /> <br />Agenda Date Requested: <br /> <br />Appropriation <br /> <br />Requested By: Cynthia Alpunder, nirector of Finance <br /> <br />Source of Funds: <br /> <br />Not Applicable <br /> <br />Department: <br /> <br />FINANCE <br /> <br />Account Number: <br /> <br />Report: <br /> <br />Resolution: <br /> <br />Ordinance: <br /> <br />xx <br /> <br />Amount Budgeted: <br /> <br />Exhibits: <br /> <br />Services Agreement <br /> <br />Amount Requested: <br /> <br />Exhibits: <br /> <br />Budgeted Item: YES <br /> <br />NO <br /> <br />Exhibits: <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />MBIA Inc. is the world's preeminent financial guarantor and a leading provider of specialized financial services. <br />MBIA MuniServices Company (MMC) is a subsidiary of MBIA that helps municipalities preserve, enhance and <br />manage their revenue bases, and currently provides innovative revenue enhancement services to over 190 public <br />sector clients around the country. <br /> <br />MMC pioneered the creation of revenue discovery for municipalities in 1978. Since then, MMC has established a <br />track record of consistently impressive results by producing more than $750 million of new revenue. MMC <br />commenced providing services to Texas cities with the inclusion of the City of Greenville as a client in December <br />2001. MBIA Insurance Corporation has a claims-paying rating of Triple-A from Moody's Investors Service, <br />Standard and Poor's Ratings Services and Fitch mCA. <br /> <br />Staff would like to enter into an agreement with MMC for revenue enhancement services including the review of <br />Sales and Use taxes. Examples of the Scope of Services include: detecting and validating qualifying business <br />activities within the City that are not paying sales and use taxes; and determining if they are unregistered for sales <br />and use taxes; and/or are remitting those taxes to the state with distribution to another jurisdiction. <br /> <br />These services will be provided on a self-funding basis without creating an expenditure impact on the City's budget. <br />We feel that this is risk free for the city because it is on a contingency fee basis. The company goes through a series <br />of recovery processes -identified taxes will be sent directly to us - we then pay them 35% of the recovered funds. <br />For a three-year period This proposal has been presented to the Finance/Audit Committee and received their <br />approval. We are entering into this agreement for a one-year period, with a 30-day termination clause by either <br />party. <br /> <br />Action Required bv Council: <br /> <br />Recommend that we enter into agreement with MBIA MuniServices Company for review and recovery of Sales and <br />Use taxes. <br /> <br />Approved for City Council Al!enda <br /> <br />G?~ T. \1-~ <br /> <br />Robert T. Herrera, City Manager <br /> <br />s- \L,.o2- <br />Date <br />