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Home My WebLink About11316RESOLUTION NO. 11316 A RESOLUTION AUTHORIZING THE TRANSFER OF $6,921.05 FROM THE CONTINGENCIES ACCOUNT IN THE 2008 GENERAL FUND BUDGET TO THE OUT OF CYCLE REQUESTS TO REFUND THE BESSEMER HISTORICAL SOCIETY'S 2006 CITY PROPERTY TAX ASSESSMENT BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The transfer of $6,921.05 from the Contingencies Account in the 2008 General Fund budget to the Out of Cycle Requests Fund is hereby approved. SECTION 2_ Said funds shall be dispersed from the Out of Cycle Requests to refund the Bessemer Historical Society's 2006 City property tax assessment. INTRODUCED June 23, 2008 BY Vera Ortegon Councilperson I`81f I T' i ILim ATTEST D BY CLEW Re-s 1131E E I I Background Paper for Proposed RESOLUTION DATE: June 23, 2008 AGENDA ITEM # DEPARTMENT: OFFICE OF THE CITY MANAGER DAVE GALLI, CITY MANAGER DOUG FITZGERALD, ASSISTANT CITY MANAGER TITLE A RESOLUTION AUTHORIZING THE TRANSFER OF $6,921.05 FROM THE CONTINGENCIES ACCOUNT IN THE 2008 GENERAL FUND BUDGET TO THE OUT OF CYCLE REQUESTS TO REFUND THE BESSEMER HISTORICAL SOCIETY'S 2006 CITY PROPERTY TAX ASSESSMENT ISSUE Should the City Council refund the Bessemer Historical Society's 2006 City property tax assessment? BACKGROUND The Bessemer Historical Society (BHS) was required to pay property taxes after title was changed on their property in order to qualify for Historic Tax Credits and New Market Tax Credits. These two federal programs are going to bring close to $4 million to the renovation of historic CF &I properties. This change removed the tax - exempt status (501(c)(3) to an LLC) of BHS, and the organization was required to pay City property taxes in the amount of $6,921.05 in fiscal year 2006. Subsequently, the state assessor has agreed to hold tax payments in abeyance for this year and the following year until legislation (Senator Tapia is sponsoring this legislation) is passed by the Colorado Legislature to exempt property tax due to the sale of Historic Tax credits and New Market Tax credits for a 501(c)(3) use. The state will not exempt taxes assessed in 2006. Approval of the Resolution. FINANCIAL IMPACT Funds in the amount of $6,921.05 will be transferred from the Contingencies Account in the 2008 General Fund Budget (see attached spreadsheet for the balance in the contingencies account).