Read and Oo*nsi*dered

lhe City of Sonoma is seriously remiss in not chorging, collecting, reporting, or paying sales tox on tdngible items sold through the cemeteries, resulting in o liobility for the City. Response: We disagree partially with the finding, see response to R1.

Responsibility for manoging collection and payment of soles tox on cemeteries' tangible items is not delegoted to any stolf member or deportment, which hos contributed to the City's foilure to meet its responsibility to report ond pdy the soles tox obligdtion. Response: We disagree partially with the finding, see response to R1. The cemeteries hove been losing money Jor an undetermined number oI years and the operdtion expenses must be subsidized onnuolly by the Endowment Fund which is not invested to generate odequote income; 550,000 hos been tronsJerred for eoch of the post siven years ond presumably will continue, resulting in the eventual depletion of the Endowment Fund. Response: We agree with the finding.

Sonoma is undercharging for lettering services ond ring ond vose sets, resulting in finonciol loss to the Cemetery Enterprise Fund. Response: We agree with the finding.

The Cemetery Endowment fund is shrinking since the cemeteries ore neorly built out, therefore there ore limited opportunities to ossess endowment fees- The Fund does not oppeor to be invested bosed upon the financidl stotements. Response: We disagree partially with the finding. Based on the November 2022 City of Sonoma Cemeteries Planning Study by EDA Land Planning, there is room for increasing capacity in allthree city-owned cemeteries to generate additional revenue and increase the endowment fund. Further evaluation of the finances and investment strategy will help to assess the full extent of groMh and revenue that can be anticipated,

Recently, the City of Sonoma hos hod high turnover in severol senior manogement positions- No evidence of o policies and procedures monuol exists for ony of the cemeteries, nor does the City publish informotion on cemetery fee schedules; oll indicotinq neglect of cemetery operotions. Response: We disagree partially with the finding. Some procedures have been developed for sales and the process of working with customerc. Additional policies and procedures are needed and will be developed as mentioned in response to R3. The cemetery invoice forms do not hove a line item for colculoting soles tox for tangible items therefore, the occounting software progrom used by Sonomo does not report on their soles tox liability, resulting in loilure to chore, collecl report, or poy soles tax to the CDTFA. Response: We disa8ree partially with the findin& see response to R1. RESPONSE TO GRAND JURY RECOMMENDATIONS