Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance topic
No spam. Unsubscribe anytime.
Council told city may owe about $300,000 in unpaid IRS taxes; amendment coming in June
Summary
City staff reported stronger-than-expected sales-tax receipts but told the council it may owe about $300,000 in federal taxes for 2018–2022; staff said a budget amendment will be presented in June to address the liability.
City staff explained the city's March financial update and warned of a multi-year federal tax liability that will require budget adjustments.
Staff reported $462,000 in PWA receipts for March and said combined restricted PWA and General accounts held $1.35 million at month-end; the city began the period with about $1.8 million, compared with a prior $1.6 million figure. Sales tax income is running about 12% above budget year-to-date, and a royalty uptick of about $56,000 over nine months was noted as part of the revenue improvement.
On liabilities, staff estimated the city may owe roughly $300,000 to the IRS for tax years 2018 through 2022, excluding interest and penalties. Auditors are continuing work on 2022 and are scheduled to appear at the May meeting. When the council asked about timing for a budget amendment, Tracey replied, "June."
