HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/19/2000 - SECOND READING OF ORDINANCE NO. 174, 2000, APPROP AGENDA ITEM SUMMARY ITEM NUMBER: 14
DATE: December 19, 2000
FORT COLLINS CITY COUNCIL Frank Bruno
FROM: Alan Krcmarik
SUBJECT:
Second 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 Second Reading.
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. Ordinance No. 174, 2000, was unanimously adopted on First Reading on
November 21, 2000.
AGENDA ITEM SUMMARY ITEM NUMBER: 21
DATE: November 21, 2000
FORT COLLINS CITY COUNCIL Frank Bruno
STAFF: Alan Kremarik
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 o CeOrdiiopieay
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.
COPY
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 anu turin commun'ty. he goal of the program is to
maintain the local economic ase ovi o t r ief to manufacturing concerns
located in Fort Collins. Du g 1999, e AF
Ci o Col received $5,618,201 in use tax
receipts from eligible corn ies 'n andard ustrial Code classification for
manufacturers. This constitutes o of all use tax paid by loc usinesses 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 Belg' Bre'llf Cc 12,498
Ion Tech, X 1,635
Value Plastics 2,995
Directed Energy, Inc. 127
Total $329,135
SUMMARY:
The 1999 rebate reflects the fic di and the completion of the
expansion of the Anheuser-B ch f i e the o es may have experienced some
expansion, the impact on the gram thin'
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.