200 S. Anaheim Blvd.
Suite #643
Anaheim, CA 92805
Tel: (714) 765-5195
Fax: (714) 765-5260
www.anaheim.net
COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: APRIL 21, 2026
FROM: FINANCE DEPARTMENT
SUBJECT: AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
BETWEEN MUNISERVICES, LLC AND THE CITY OF
ANAHEIM FOR SALES AND USE TAX AUDITING AND
REPORTING SERVICES
ATTACHMENT (Y/N): YES ITEM # 21
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
The City Council, by Motion, approve the second amendment to the Professional Services Agreement with MuniServices, LLC, to provide auditing, reporting, monitoring, and analysis of sales and use tax revenues increasing the term by three years with three optional one-year renewals and the not to exceed amount from $300,000 to $450,000, and authorize the Finance Director to execute the Agreement on behalf of the City and to take actions necessary to implement and administer the Agreement.
DISCUSSION:
The City has contracted with MuniServices, LLC for sales tax reporting services since 2009 and for property tax reporting since 2012. The scope of services for the amended agreement reflects Sales and Use Tax only as they no longer provide property tax services. On a quarterly basis, MuniServices examines all sales, use, and transaction tax records of California Department of Tax and Fee Administration (CDTFA) pertaining to Anaheim. From this information, they generate reports and provide an analysis of the City’s sales, use, and transactions tax allocation composition, changes, and performance on both a quarterly and benchmark year basis. MuniServices has extensive expertise in the sales tax field and specific knowledge working with the CDTFA and has proven to be a valuable resource to City staff in the time we have worked with them.
The City pays approximately $20,000 per year for reporting, analysis, and information services. These services include quarterly meetings with the consultant and reports with business level detail showing current sales tax performance, quarterly and annual sales by sector and a five-year sales tax forecast by business category. The attached amendment extends the agreement for a three-year term with three optional one-year renewals and increases the not to exceed amount by $150,000 to $450,000.
Additionally, the City will pay MuniServices a 20% contingency fee for any findings that are identified and corrected with respect to misreported Sales and Use or Transactions Taxes according to the terms of the Agreement. Sales and Use Tax is the Amendment to Professional Services Agreement between MuniServices, LLC and the City of Anaheim for Sales and Use Tax Auditing and Reporting Services
April 21, 2026
second largest revenue source for the City. This Agreement helps to ensure the City is receiving all the revenue to which it is rightfully entitled.
IMPACT ON BUDGET:
Audit findings resulting in additional tax revenues to the City will offset the 20% contingency fee and maximize revenue to the General Fund. Annual costs of approximately $20,000 for Sales and Use Tax information systems are included in the Finance Department’s General Fund budget. Future years will be subject to Council’s approval of budget appropriations.
Respectfully submitted,
Deborah A. Moreno
Finance Director/City Treasurer
Attachment:
1. Second Amendment
2. Original Agreement with First Amendment