HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/18/2001 - SECOND READING OF ORDINANCE NO. 200, 2001, APPROPR AGENDA ITEM SUMMARY ITEM NUMBER: 9
DATE: December 18, 2001
FORT COLLINS CITY COUNCIL STAFF: Frank W. Bruno
110 Alan J. Krcmarik
SUBJECT:
Second Reading ofOrdinance No.200,2001,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. During 2000,the City of Fort Collins received$3,438,535 in use tax receipts from eligible
companies within the Standard Industrial Code classification for manufacturers. This constitutes
65% of all use tax paid by local businesses in 2000. Ordinance No. 200, 2001, was unanimously
adopted on First Reading on November 20, 2001.
AGENDA ITEM SUMMARY ITEM NUMBER: 11
DATE: November 20. 2001
FORT COLLINS CITY COUNCIL Frank W. Bruno
STAFF: Alan J. Krcmarik
SUBJECT:
First Reading of Ordinance No. 200, 2001. 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
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FINANCIAL IMPACT:
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The 2001 Manufacturers Rebate program (for tax yea¢?f000 rebates) will require an appropriation
from the Sales and Use Tax Carryover Reserve of aPPt �' ely $498.020.
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EXECUTIVE SUMMA*
In Mach 1996, City Councfr _ vpd a temporary rebate program for use tax paid on
manufacturing equipment. The pr `§ " 4 ended in February 1999 to include several changes
sug , ed by staff and the manufacturing community. The goal of the program is to maintain the
I( onomic base by providing modest tax relief to manufacturing concerns located in Fort
Collasl6 .During 2000,the City offort Collins received$3,438,535 in use tax receipts from eligible
com M ;$ within the Standard Industrial Code classification for manufacturers. This constitutes
65°/u o e tax paid by localYusinesses in 2000.
BACKGROUND.
Thirty-seven applications were sent to qualified manufacturers. Thirteen (13) rebate applications
requesting approximately $655,885 in rebates of tax year 2000 use taxes were received.The eligible
companies and the estimated amounts of their rebates are as follows:
DATE: November 20, 2001 2 I ITEM NUMBER: 11
Company Estimated Rebate
Advanced Energy Industries $ 61,640
Advanced Manufacturing 148
Agilent Technologies 48,624
Anheuser-Busch, Inc. 139,799
Atrix Laboratories. Inc. 321
Celestica Colorado 61,532
Directed Energy, Inc. 381
Ion Tech 2,969
LSI Logic/Symbios 159,458
New Belgium Brewing 17,981 ,
O'Dells Brewing 668 ;,
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Ranchway Feeds $.
Value Plastics R
Total $498,020
SUMMARY:
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The tax year 2000 rebate reflects the expansion ' Anheuser-Busch facility as well as new
equipment purchases for LSI, Inc. The estimated reb8fe`Qf$498,020 is over 50% more than the
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1999 rebate of$329,134. The me ase is due to strong during equipment purchases from
the major manufacturers. ' 6Y
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The Manufacturers Use Ta Rebate Program wa CXtkgded for 20013ui ate 2000. Staff will continue
to monitor the program ani to provide the City M r with updates on the status of the program
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and the potential financia%,ability.
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