HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/19/2002 - FIRST READING OF ORDINANCE NO. 173, 2002, APPROPRI AGENDA ITEM SUMMARY ITEM NUMBER:
DATE: November 19, �OQ"'
FORTCOLLINS CITY COUNCIL
STAFF:
Alan Krcn
SUBJECT:
First Reading 3f Ordinance No. 173, 2002, Appropriating Unanticipated Revenue in the `,,
and Use Tax Find for a Change in Accounting Practices.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
There is no fir ancial impact to the City by adoption of this Ordinance. The Ordinance proposes
a change in accounting practices recommended by the external auditors. While appropriations
and correspo ding expenditures will increase on the books, there will be no "real' money
collected or di tributed by the City.
EXECUTIVE SUMMARY:
Each year the City prepares an annual financial report that is audited by an independent firm. In
the 2001 Management Report from Bondi & Co LLP, the auditors recommended that collection
fees be included in the gross revenue of the City. Staff has made adjustments to account for the
collection fees that the Larimer County Treasurer retains in the collection of property taxes. In
further discussions with the auditors, the principle applies to other revenue sources. Businesses
retain a portion of sales taxes and the County Treasurer retains a portion of use taxes paid when
vehicles are registered. This Ordinance estimates the amount of these fees and appropriates
them to properly account for the transaction.
ORDINANCE NO. 173, 2002
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE SALES AND
USE TAX FUND FOR A CHANGE IN ACCOUNTING PRACTICES
WHEREAS, each year the City of Fort Collins prepares an annual financial report that is
audited by an independent auditing firm; and
WHEREAS, the City's independent auditing firm, Bondi & Co. LLP, has recommended a
change in accounting practices which affects how the City records sales and use tax revenue
received; and
WHEREAS,the change in accounting practices requires the City to record the gross amount
of revenue received and record any fees on this revenue as an expense; and
WHEREAS,this change in accounting practices requires an increase in appropriations which
is offset by an increase in the sales and use tax revenue collected,but does not change the net amount
of sales and use tax revenue received by the City; and
WHEREAS,Article V,Section 9, of the Charter of the City of Fort Collins permits the City
Council to make supplemental appropriations by ordinance at any time during the fiscal year,
provided that the total amount of such supplemental appropriations,in combination with all previous
appropriations for that fiscal year,does not exceed the then current estimate of actual and anticipated
revenues to be received during the fiscal year; and
WHEREAS, City staff has determined that the appropriation of the unanticipated revenue,
as described herein, will not cause the total amount appropriated in the Sales and Use Tax Fund to
exceed the current estimate of actual and anticipated revenues to be received in that fund during any
fiscal year.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that there is hereby appropriated from unanticipated revenue in the Sales and Use Tax
Fund the sum of ONE MILLION TWO HUNDRED SEVENTY THOUSAND DOLLARS
($1,270,000) for expenditure in the Sales and Use Tax Fund for a change in accounting practices.
Introduced and considered favorably on first reading and ordered published this 19th day of
November, A.D. 2002, and to be presented for final passage on the 17th day of December, A.D.
2002.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 17th day of December, A.D. 2002.
Mayor
ATTEST:
City Clerk