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HomeMy WebLinkAbout1996-01-22 96-87 RESOLVECOUNCIL ACTION Date: 1-22-96 Item No 96-8] Item/Subject: RBSOLW, Making an Appropriation of Unanticipated Revenues to the City Assessor's Office for Purposes of Conducting a Partial Audit of Personal Property Tax Accounts Responsible Department: Assessing (:nNeGn[ery: At the recently held Assessor's Workshop, City Assessor Ben Birch reviewed with the Council his proposal to have G 6 A Associates perform selected audits of certain personal property accounts with questionable valuations. As noted in the Assessor's Workshop and as originally discussed with the Council during last year'a budget process, we are concerned u regarding the adequacy of the current personal property tax r records ailable in the Assessor's Office. Numerous businesses do not regularly report their personal property. In addition, questions exist regarding the accuracy of reports which are filed with the Assessor's Office. During last year's budget process, the need for such an audit was discussed. We estimate the full cast of auditing all personal property cards for the City of Bangor to be approximately $90,000. At that time, the Council discussed providing $15,000 to the Assessing Dept. to begin this process and to provide us with better information regarding what the affect of a full audit would be. At the last Finance Committee meeting, the Committee recommended that we proceed with this project. Funds are available from supplemental assessments which have been issued so far this year. In total, approximately $30,000 in supplemental asents have been issued this year. Approximately half of this amountissthe result of supplemental assessments and penalties levied against property owners who have removed their property from tree growth. )d2q:YYSIdPYY/Nd:'4 I would recommend that we proceed with this project. Based on the Assessor's r of the situation, we have the potential of realizing significant additional revenue by improving the accuracy of our personal property records. This audit will allow us to determine exactly how accurate these records are and give us a basis for projecting the impact which a full audit and review might have. /y n „_ , Associated Information: Resolve, Memorandum from the City Assessor Budget Approval: Legal Approval: CTT�YSOEICITOR _Introduced For Passage First Reading Paga_of_ Referral 96-8I eae-gaed co Councilor Blanetecre January 22, 1996 CITY OF BANGOR (TITLE.) �RCW&M ...........Making ....................._..._..._..._....U...n..a...n_t...i_c..i_p..a..t...e...d ...._....._...._..... ._..._.._ Revenues to the City Assessor's office for purposes of Conducting a Partial Audit of Personal property Tax Accounts By at(.bnnml of Wa at OfBoypor. AMOLVED, the amount of $15,000 is hereby appropriated to account number 1006-73010000 for purposes of funding a partial personal property record review. This appropriation shall be funded from certain unanticipated revenues which have resulted from supplemental tax assessments. Revenue account 1307-41010000 shall hereby be increased by $15,000. 96-8] 1N CITY COUNCIL q E$ Q 1. Y E January 22, 1996 First Reading Making an Appropriation of Unanticipated CITY CLEM Revenues to the City Assessor a Office for the Purpose of Conducting a Partial IN CITY COUNCIL Audit of Personal Property Into Accounts. February 12, 1996 Passed gm 4U' M--I/�/ CITY CLEAN e03 1�'- 96-87 at cin of „ly ni{>N, MAwE pECE1�Efl Manor SUFFlUE., p 30,01 SEP$INGOEPARTMENT,4,m Be,JrAawmsor EiianSmmfirpreinear EarlSherwood, AppairecM1. January 30, 1996 Ry S. Draw, ud/*. flhontla Jordan, Access Cieh TO: EB BARRETT e FROM: BEN BIRCH SUBJECT: MONIES APPROVED FOR PERSONAL PROPERTY AUDITS Per direction given at last night's Council Workshop, I am writing this to request the transfer of $15,000 into the Assessing Department's bud- get. As mentioned at the workshop, this amount was approved in the fiscal year 1996 budget to be used for audits of certain personal property accounts with questionable valuations. As this has not been a prior bud- geted line item, please advise what account number will be assigned. I indicated at the workshop, I would like to have G 6 A Associates perform the audits. I believe it was stated, in order for G S R to be selected and to have the work being as s possible, the Finance Committee would have to approve bypassing the requests for PFA'S route. If this is correct, will I need to prepare any special paperwork for this process to begin as soon as possible? Lastly, I have contacted G 6 R Associates and the following time sche- dule has been set up: March 1. 1996, on or about, Gail Gantick of G d R Associates will arrive in Bangor to assist in determining what partic- ular accounts will be audited. Also at this time signing of Paperwork (contract) will be finalized. April S. 1996, on or about, Gail Gantick of G S R Associates will return to cosmeence auditing businesses. May 15, 1996. Hopefully, the FY '97 personal property declara- tions forms will have been returned to the Assessing Dept. June 1. 1996, on or about, final figures should be in on the audited accounts to be used for the FY '97 assessment Period. Fail Bangor City Councilors