Willows Fire Department

Recommendations 1

• R01-35

  Page 24
  In the interests of safety it is recommended that the upgrade of all communications equipment be completed as soon as possible. VI. RESPONSE REQUIRED: Willows Fire Department: (01-35) PUBLIC WORKS AND DEVELOPMENT SERVICES AGENCY I. PURPOSE: Response to a citizen inquiry. II. BACKGROUND: The Grand Jury received a letter from a citizen wishing verification that the heavy equipment purchased for the Glenn County landfill had in fact been handled through the vendor’s Willows facility. A portion of the sales tax is returned to the governing body for sales transactions occurring within its jurisdiction. The vendor in question has sales outlets in other jurisdictions within California. The Public Works and Development Services Agency Director had written a letter stating that the vendor had informed him that the sale had been handled through the Willows store. III. FINDINGS: · The Grand Jury contacted the City of Willows Finance Director for assistance in determining if in fact the above sales tax was being received by the City of Willows. The Finance Director with the assistance of the Glenn County Department of finance determined the following: The County entered into a lease agreement with Caterpillar Financial Services Corporation to lease/purchase both pieces of equipment. Sales tax is charged and collected ratably over the life of each lease. As such, as the County pays each annual installment, sales tax is collected by Caterpillar and paid to the California Board of Equalization. Since the sales tax is paid ratably, no significant “spike” in sales tax was noted in the Caterpillar account, nor will it be expected over the life of the lease.