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Costs and Sources of Funding. Costs for this action include in -kind staff time and fees paid to the Cirv's sales tax consultant. which are funded through the City General Fund. Generally. there is a net fiscal benefit to the City from employing sales tax consultant services. since the auditing activity returns more funds to the City than the City expends for the consultant services. Aside from this. annual staff costs for merchant outreach will be LOW. This aspect of the program will also operate with a goal of generating increased local sales tax allocations in excess of the staff costs. ` Action 3.5: Conduct Study of Non -Retail Sales Tax Activity in San Leandro Business -to -business sales of taxable goods is an important generator of sales taxes within the City of San Leandro. The Baseline Study determined that this non -retail sales activity has actually been declining, after adjusting for the effects of inflation. The purpose of this program is to study the non -retail sales activity in San Leandro and determine the cause of the declines. This task should first involve a general study of the types of businesses in San Leandro that generate non -retail sales tax revenues. and how that has chanted over time. The City should compare historic information about non -retail sales tax generators with information about non -retail sales tax generators present in San Leandro at this time. This type of information will help the City to understand which types of businesses generate taxable non -retail sales. and whether this has changed over time. A key question would be whether the declines can be traced to the loss of several major generators. or whether there were across-the-board declines that would be attributed to general economic trends. This portion of the analysis can help the City determine the most appropriate Police direction to take with regard to future non -retail sales activity. Once the Cite has a good understanding of its current and historical non -retail sales tax sources. the next step will be to develop a strong retention program targeted at those businesses that are currently contributing significantly to the tax base: and an attraction program focused on bringing more businesses non -retail sales tax-generatin businesses to San Leandro. This program could be carried out in conj° unction with the stud\ of potential industries or industn_ clusters for attraction to San Leandro recommended in Action 1.16. Roles and Responsibilities. Economic Development staff would coordinate this work. however this would be an appropriate task for completion b\ consultants. Consultants could be responsible for both conducting the analysis and developing recommendations regarding retention and recruitment. Priority: MEDIUM Costs and Sources of Funding. In addition to in -kind staff time. for project coordination. cost of consultant services for this task would range from $10.000 to 520.000. Based on this. the one-time costs for this action would be MEDIUM. 2 05 w 54