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Resolution Authorizing the Execution of Certain Documents Required by the California Board of <br />Equalization to Collect The City's Utility Users' Tax on Prepaid Wireless Service <br />August 18, 2015 <br />Page 2 <br />The BOE provided notification to local jurisdictions, via a press release on July 29, 2015, <br />requiring local public agencies to enter into a contract with the BOE by September 1, 2015 to <br />ensure uninterrupted collection of these local revenues. Additionally, as indicated by the BOE, <br />failure to enter into the contract would result in the City of Santa Ana Utility Users' Tax ( "UUT ") <br />imposed upon MTS not to be collected by the sellers. Consequently, the City will not receive the <br />Utility Users' Tax revenue from prepaid MTS providers. <br />Furthermore, if local jurisdictions fail to enter into the above - referenced contract by September 1, <br />2015, the next opportunity to enter into a contract with the BOE will be December 1, 2015. Delay <br />in entering into a contract would result in the BOE not collecting charges imposed upon MTS until <br />April 1, 2016. Thus, cities would forfeit revenues for the period January 1, 2016 through March <br />31, 2016. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item allows the City to meet Goal No. 4 City Financial Stability, Objective No. 3 <br />(Achieve a structurally balanced budget with appropriate reserve levels), Strategy A (Modernize <br />and adopt the City's utility user's tax ordinance by June 2014). <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />Francisco Gutierrez <br />Executive Director <br />Finance & Management Services Agency <br />Exhibit 1 <br />Resolution <br />Exhibit 2 <br />Local Charge Agreement <br />Exhibit 3 <br />Certification Statement <br />Exhibit 4 <br />California Board of Equalization Press Release <br />SV/WH <br />55B -2 <br />