Body
Department of Finance
Reference: Food Sales Tax Rebate
To: Mayor Kenneth J. Kreutzer and Members of City Council
Through: Philip A. Rodriguez, City Manager
Prepared By: Jean B. Starr, Interim Assistant Finance Director
Date Prepared: November 29, 2018
PURPOSE
Pursuant to Brighton Municipal Code Section 3-28-15 (d), to adopt by resolution that no additional amount be added to the Food Tax Rebate Account for the fiscal year, ending December 31, 2018.
STRATEGIC FOCUS AREA
Financially Responsible
BACKGROUND
Summary of Food Sales Tax Rebate Account Provisions
In 2001, the City Council approved, by Ordinance number 1764, an amendment to the Brighton Municipal Code Section 3-28-15(d), providing that all or a portion of the Food Sales Tax Revenue collected in the previous year may be placed in the Food Sales Tax Rebate Account and may be rebated back to the eligible tax-paying residents of Brighton. This rebate is not mandatory, and City Council may determine that insufficient revenues are available for rebate. The General Fund sales tax collected on food for home consumption is not placed in the Food Sales Tax Rebate Account until City Council approves the dollar amount. Once approved, determination of usage is made by City Council.
Summary of Last Three Years Adopted Resolutions
As of 12/31/15, $264,728 had been placed in the Food Sales Tax Rebate Account. On 4/30/16, the City Council approved a $39.00 Food Sales Tax Rebate, which was paid to 6,463 Brighton households a total of $252,057. After direct expenses of processing the rebate, the Food Sales Tax Rebate Account had a zero balance. On December 20, 2016 by resolution, $134,000 was approved to be transferred from the "General Fund Unassigned Balance" to the "Food Sales Tax Rebate Committed Account." On December 19, 2017 by resolution, zero amount was placed in the "Food Sales Tax Rebate Committed Account." Therefore, the current balance of the Food Sales Tax Rebate Account remains at $134,000.
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