Minutes 06/28/2005 - Laserfiche WebLink

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June 28. 2005 Background: . The 2005 General Assembly amended the Code of Virginia Section 58.1-3916 to allow the governing body of any county, city, or town to impose penalty for the delinquent remittance of excise taxes on meals, lodging and admissions collected from consumers, not to exceed ten percent for the first month the taxes are past due, and five percent each month thereafter, not to exceed 25 percent of the taxes not remitted. . Under the existing City Code, the penalty for such delinquent remittance is limited to ten percent. Discussion: . The City Code Sections will be revised as of July 1, 2005. . The City Treasurer has recommended language amendments to the three referenced City Codes sections. These recommendations have been attached for review, along with the original version of the referenced Code Sections. . Financial Impact: The effect of the proposed amendments would raise the delinquent remittance limitation from ten percent to 25 percent. Historically, the City has been proactive in adopting changes to City Code based upon changes in State law. In addition, adopting this change will enhance the collection enforcement capability of the City Treasurer and increase revenue as well. Staff Recommends: Adoption of an ordinance requesting City Code amendments that will allow the Portsmouth City Council to impose a penalty for the delinquent remittance of excise taxes on meals, lodging and admissions collected from consumers, not to exceed ten percent for the first month the taxes are past due, and five percent each month thereafter, not to exceed 25 percent of the taxes not remitted. Vision Principle: A Robust and Prospering Economy. Next Steps Following Council Action: . The City Treasurer will submit the necessary programming changes to the Director of Information Technology for implementation, if approved. Motion by Mr. Moody, and seconded by Ms. Randall, to adopt the following ordinance, and was adopted by the following vote: "AN ORDINANCE TO AMEND CHAPTER 35 OF THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA (1988) BY AMENDING SECTIONS 35-381, 35-413, AND 35-447 THEREOF PERTAINING TO PENALTIES FOR DELINQUENT AMUSEMENT, RESTAURANT FOOD, AND GUEST LODGING TAXES." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None 05 - 289 - Adoption of an ordinance to accept a reimbursement grant from USDA for $488,769.92 and appropriating $488,769.92 in the Grants Fund for the USDA Summer Food Program. No City cash match required. Vision Principle: Neighborhood and Community Transformation. Background: . The City of Portsmouth has received a grant from USDA for the Summer Food Program for more than 25 years, administered by the Recreation Division. . Each year the program has grown to accommodate more churches, civic organizations, schools and recreation locations. . The program provides meals during the summer months when children are out of school and the free and reduced school lunch program is not available. Discussion: . The USDA Summer Food Program for 2005 will include 35 sites consisting of Summer School sites; faith based childcare programs, community organizations and City of Portsmouth Recreation sites. . It is estimated that the program will serve 4,107 breakfasts and 2,822 lunches per day during the summer months. . Financial Impact: There is no City cash match required. The grant is a total reimbursement grant based on the number of meals served.