DATE: October 4, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent. Assistant City Administrator/Chief Financial Officer
SUBJECT:
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Consideration of COF Contract Number 2017-0238, A Memorandum of Understanding (MOU) between Williamson County, Tennessee, the City of Brentwood, and the City of Franklin.
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the Memorandum of Understanding (MOU) between Williamson County, Tennessee, the City of Brentwood, and the City of Franklin regarding certain financial responsibilities for a hotel/motel tax audit.
Background
On a periodic basis, the City of Franklin partners with Williamson County for engagement of professional services to perform an audit of hotel/motel taxes due from such businesses located within the City of Franklin. The most recent audit was performed in 2014. For the 2017 study, the City of Brentwood chose to partner with Williamson County for preparation of audits of businesses located within their City. The Memorandum of Understanding for the 2017 audit incorporates cost sharing among Williamson County and the Cities of Brentwood and Franklin, respectively.
Financial Impact
The Memorandum of Understanding calls for the City of Franklin to reimburse Williamson County for half of the expense (not to exceed $750) for each hotel/motel audit prepared by the accounting firm of Allen McGhee and Associates. The estimated FY 2018 expense to the City of Franklin is $17,500 and was budgeted in the Hotel/Motel Fund.
Staff expects the audit reports to be completed by end of December 2017. Businesses identified as owing taxes to the City of Franklin will be invoiced in accordance with results of the audits.
Recommendation
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Staff recommends approval.