CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: October 15, 2025
To: Honorable Mayor and City Council Members
From: C. Jeannie Fortune, Interim Director of Finance & Management Services
Department: Finance & Management Services
Subject: Approve a Five (5) Year Professional Services Agreement with HdL Coren & Cone for Property Tax Consulting
Services in an amount not to exceed $121,180 (All Wards) Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve a Professional Services Agreement (PSA) with HdL Coren & Cone for Property Tax Consulting Services in an amount not to exceed $121,180 annually, for a term of five (5) years, plus contingent fees for revenue recovery services as outlined in the agreement.
Executive Summary
The City of San Bernardino’s property tax revenues are structured differently than most cities due to the 2016 annexation of fire services to the San Bernardino County Fire Protection District. As a result, the City no longer receives a direct share of the 1% ad valorem property tax levy. Instead, its discretionary revenues tied to property values come primarily from Property Tax in Lieu of Vehicle License Fees (VLF), one of the City’s largest General Fund revenues, which grows annually with assessed valuation.
The City also receives residual revenues from the former Redevelopment Agency.
HdL Coren & Cone has been the City’s property tax consultant since 2010, providing specialized expertise to protect and maximize these revenue streams. Their services include auditing County allocations, identifying and correcting misallocations, forecasting revenues for budget planning, and supporting redevelopment successor agency compliance. The proposed agreement ensures continuity of these critical services through June 30, 2030.
City Manager Comments
No Comments.
Background
HdL Coren & Cone has over 25 years of experience supporting California local governments in managing property tax revenues. Their proprietary software and familiarity with San Bernardino County Assessor and Auditor-Controller systems provide accurate and timely analysis that the City could not easily replicate in-house.
Since 2010, HdL has assisted the City by:
Identifying and correcting property tax misallocations. Reconciling County property tax rolls.
Forecasting revenues for annual and long-term budgets. Supporting redevelopment successor agency reporting and cash flow analysis.
Following the 2016 fire annexation, the City’s direct allocation of property tax revenues was shifted to the County Fire Protection District. In exchange, the City now receives Property Tax in Lieu of VLF, which remains tied to assessed valuation growth. HdL’s oversight has been essential in safeguarding this revenue stream and ensuring proper County distributions.
The proposed PSA continues the City’s partnership with HdL through FY 2029–30, updating the scope of services and establishing a clear cost structure to ensure fiscal continuity.
Discussion
Property tax–related revenues, particularly Property Tax in Lieu of VLF and residual redevelopment revenues, represent one of the City’s most significant and stable General Fund sources. Ensuring these revenues are correctly allocated, forecasted, and monitored is critical for fiscal sustainability.
HdL Coren & Cone brings specialized expertise, serving numerous California jurisdictions including nearby cities and both San Bernardino and Riverside Counties.
Their work for the City is organized into three core areas:
1. Audit & Error Correction (Contingent Fee)
a. Biennial audits of secured roll parcels to confirm correct tax rate area assignment.
b. Annual reconciliations of assessed valuation reports. c. Review of unsecured roll parcels for errors and misallocations. d. Audits of general fund and tax increment allocations.
2. Forecasting & Reporting (Fixed Fee)
a. Development of one- and five-year budget projections. b. Reports on top taxpayers, ownership transfers, new construction, and Proposition 8 parcel changes.
c. Historical valuation and sales price trend analysis. d. Gann Limit reporting and annual newsletter summaries. e. City-specific online property tax database updated monthly.
3. Successor Agency & Consultation (Fixed Fee)
a. Annual tax increment projections and cash flow analysis. b. Review of Redevelopment Obligation Payment Schedules (ROPS). c. Monitoring of pass-through and residual revenues.
d. Year-round staff consultation and technical support.
HdL also offers optional services (time-and-materials or negotiated fees), including specialized data reports, additional County research, and bond-related consulting.
The Agreement with HdL Coren and Cone for property tax consulting services is being brought forward for the Mayor and City Council's approval in accordance with Section
3.04.010 D.3. of the City's Municipal Code and Section V (e) of the City's Purchasing Policy (Attachment 11). As outlined in both the Municipal Code and Purchasing Policy, a purchase that is otherwise approved by the action of the Mayor and City Council in a public meeting is exempt from the City's Purchasing Policy. 2021-2025 Strategic Targets and Goals
Approval of a Professional Agreement with HdL Coren & Cone aligns with Goal 1.
Improved Operational & Financial Capacity.
Fiscal Impact
The annual cost for services consists of a fixed base annual fee with an adjustment by potential California Consumer Price Index (CCPI) of 4% per year, for a term of five (5) years with a total fiscal impact of $121,180. This cost is included in the FY 2025/26 Operating Budget, and future appropriations will be programmed through FY 2029/30.
HdL is also entitled to a 25% contingent fee on any new revenues directly recovered through audit efforts. These fees are cost-neutral since they are paid only when additional revenues are secured.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve a Professional Services Agreement (PSA) with HdL Coren & Cone for Property Tax Consulting Services in an amount not to exceed $121,180 annually, for a term of five (5) years, plus contingent fees for revenue recovery services as outlined in the agreement.
Attachments
Attachment 1 Attachment 1 - PSA with HdL Coren & Cone
Ward:
All Wards
Synopsis of Previous Council Actions:
October 10, 2010 The Mayor and City Council adopted Resolution No. 2010-350 and 2010-351 authorizing the execution of
an agreement with HdL.
CC: Eric Levitt, City Manager