HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/21/2000 - FIRST READING OF ORDINANCE NO. 174, 2000, APPROPRI AGENDA ITEM SUMMARY ITEM NUMBER: 21
DATE: November 21, 2000
FORT COLLINS CITY COUNCIL Frank Bruno
STAFF: Alan Krcmarik
SUBJECT:
First Reading of Ordinance No. 174, 2000, Appropriating Prior Year Use Tax Carryover
Reserves for the Manufacturer's Use Tax Rebate Program.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
The 2000 Manufacturers Rebate program (for tax year 1999) will require an appropriation from
the Sales and Use Tax Carryover Reserve of approximately$329,135.
EXECUTIVE SUMMARY:
In March 1996, City Council approved a temporary rebate program for use tax paid on
manufacturing equipment. The program was amended in February 1999 to include several
changes suggested by staff and the manufacturing community. The goal of the program is to
maintain the local economic base by providing modest tax relief to manufacturing concerns
located in Fort Collins. During 1999, the City of Fort Collins received $5,618,201 in use tax
receipts from eligible companies within the Standard Industrial Code classification for
manufacturers. This constitutes 71% of all use tax paid by local businesses in 1999.
BACKGROUND:
Thirty-three applications were sent to qualified manufacturers. Thirteen (13) rebate applications
requesting approximately $434,000 were returned. The eligible companies and the amounts of
their rebates are as follows:
DATE: November 21, 2000 2 ITEM NUMBER: 21
Company Rebate
Hewlett-Packard Company $34,398
Anheuser-Busch, Inc. 73,348
M &P Enterprises 27,329
Symbios Logic (Estimate) 144,927
Advanced Energy Industries 19,891
Atrix Laboratories, Inc. 11,987
New Belgium Brewing Company 12,498
Ion Tech,Inc. 1,635
Value Plastics 2,995
Directed Energy, Inc. 127
Total $329,135
SUMMARY:
The 1999 rebate reflects the new office building for LSI Logic and the completion of the
expansion of the Anheuser-Busch facility. While other companies may have experienced some
expansion, the impact on the program was minimal.
An Ordinance for extension of the Manufacturers Use Tax Rebate Program for 2001 will also be
presented. Staff will continue to provide the City Manager with updates on the status of the
program and the potential financial liability.
ORDINANCE NO. 174, 2000
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR USE TAX CARRYOVER RESERVES
FOR THE MANUFACTURERS USE TAX REBATE PROGRAM
WHEREAS, in March 1996, City Council approved a temporary rebate program for use
tax paid on manufacturing equipment; and
WHEREAS, that program has since been modified and continued, most recently for the
year 2000 (for tax year 1999) by Ordinance No. 178, 1999; and
WHEREAS, the goal of this program is to support the local economic base by providing
modest tax relief to manufacturing concerns located in Fort Collins; and
WHEREAS, in early 2000, thirty-three applications were sent to qualified manufacturers
for rebates for the 1999 tax year; and
WHEREAS, the City has received thirteen applications requesting rebates of 1999 use
taxes for a total of approximately$329,135 to be returned to the manufacturers; and
WHEREAS, the money to rebate these funds is available in the Sales and Use Tax fund
Use Tax Carryover Reserve; and
WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins permits the
City Council to appropriate by ordinance at any time during the fiscal year such funds for
expenditure as may be available from reserves accumulated in prior years, notwithstanding that
such reserves were not previously appropriated.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that there is hereby appropriated for expenditure from the Sales and Use Tax
Fund Use Tax Carryover Reserve, the sum of THREE HUNDRED TWENTY-NINE
THOUSAND ONE HUNDRED AND THIRTY FIVE DOLLARS ($329,135) for the
Manufacturer's Use Tax Rebate Program.
Introduced, considered favorably on first reading, and ordered published this 21st day of
November, A.D. 2000, and to be presented for final passage on the 19th day of December, A.D.
2000.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 19th day of December, A.D. 2000.
Mayor
ATTEST:
City Clerk