HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/07/1999 - SECOND READING OF ORDINANCE NO. 190, 1999, APPROPR AGENDA ITEM SUMMARY ITEM NUMBER: 10
DATE: December 7, 1999
FORT COLLINS CITY COUNCIL STAFF: Frank W. Bruno
Alan J. Krcmarik
SUBJECT :
Second Reading of Ordinance No. 190, 1999, Appropriating Prior Year Reserves for the 1998
Manufacturer's Use Tax Rebate Program.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on Second Reading.
EXECUTIVE SUMMARY:
Ordinance No. 190, 1999, which was unanimously adopted on First Reading on November 16,
1999, appropriates prior year reserves for the 1998 Manufacturer's Use Tax Rebate Program.
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AGENDA ITEM SUMMARY ITEM NUMBER: 17
DATE: November 16, 1998
FORT COLLINS CITY COUNCIL STAFF Frank W. Bruno
Alan J. Krcmarik
SUBJECT:
First Reading of Ordinance No. 190, 1999, Appropriating Prior Year Reserves for the 1998
Manufacturer's Use Tax Rebate Program.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
The 1998 Manufacturers Rebate program w require an appropriation from the Sales and Use Tax
Carryover Reserve of approximately or:$ 24, 7.'
EXECUTIVE SUMMARY:
In March 1996, City Council approved a temporary rebate program for use tax paid on
manufacturing equipment. The program was amen�e�i ruary`n � J99 to include several changes
suggested by staff and the manafactunrig co�upe go*of the program is to maintain the
local economic base by providing modest tax, relief to manufacturing concerns located in Fort
Collins. During 1998,the City 0 f6 Coiiins4ecd5vLt$4,2982#1 in use tax receipts from eligible
companies within the Standard Industrial Code classification for manufacturers. This constitutes
72% of all use tax paid by local businesses in 1998.
BACKGROUND:
Twenty-seven applications were sent to qualified manufacturers. Ten (10) rebate applications
requesting approximately $620,000 were returned. An additional applicant requested an extension
but has not yet filed the paperwork for the rebate. The eligible companies and the amounts of their
rebates are as follows:
ATE: November 16, 1999 2 ITEM NUMBER: 17
Company Rebate 1
SA.600
Anheuser-Busch, Inc. 150,000
rases zce .,.„ 6.519'N
Svmbios Logic (Estimate) 25,000
Advanced Energy Industries 21,226
S_'Laborath .nc.
New Bel iums8rewin Com an ' ,. nr 5,933
p�. .:. &"9
O'Dell Brewing"4Com an w ,
LKed fn
Total $424,717
SUMMARY:
The 1998 rebate reflects the expansion of Anheuser-Busch,Inc. While other companies may have
experienced some expansion, al. Celestica of Colorado
requested a rebate for 1998 b ;; de ifq d bec d no ` 't the program requirement to be
manufacturing in Fort Collins "three,y to lie'el ible fora. bate. That provision was removed
from the program in February 1' 94 with ounei#approve i y
The Manufacturers Use Tax Rebate Program has been extended for tax year1999 and applications
for that program will be received in early 2000. Staff is also requesting that the program be extended
for 2000. Staff will continue to provide the City Manager with updates on the status of the program
and the potential financial liability.
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