Laserfiche WebLink
MINUTES <br />CITY COUNCIL <br />AUGUST 13, 2014 <br />AUGUST 4, 2014 AS WELL AS THE TWO ADDITIONAL <br />COMPONENTS FOR TESTING SERVICES AND CONSTRUCTION <br />STAKING AS NOTED BY THE CITY ADMINISTRATOR <br />The foregoing resolution was duly seconded by McGraw. <br />Ayes (4). <br />Nays (0). Resolution declared adopted. <br />McGraw asked that the Construction Manager put together a budget <br />update for the project reflecting the bid/quote award amounts so that the <br />Council can review how project costs are tracking. <br />MN DEPT. OF The City Administrator reviewed his August 8, 2014 report relative to a <br />REVENUE settlement agreement arrived at with the MN Department of Revenue on <br />SETTLEMENT the issue of Solid Waste Management Tax. He reported that initially the <br />AGREEMENT Department of Revenue claimed the City owed $29,600.43 in solid waste <br />management tax related to the City's billing of refuse service pursuant to <br />the Organized Collection Contract. The Department of Revenue claimed <br />that since the City is billing for the service they are the provider of the <br />service. As the provider, the City must itemize the charges so charges <br />associated with tax exempt services (recycling) are evident. Given the <br />City's bills only indicated a total monthly charge, the Department of <br />Revenue was effectively claiming that tax was due on recycling which is <br />tax exempt. The City provided substantial documentation showing the <br />portion of the monthly charge associated with recycling which is tax <br />exempt, thus proving that the State had been paid all the tax it was entitled <br />to for refuse services. The City has since changed its billing methods to <br />break out the tax-exempt recycling charges. <br />The Administrator also pointed out that the City did have one area of <br />exposure related to its recycling fee. Given that not all the City's time is <br />associated with overseeing/managing the refuse accounts a portion of this <br />fee is taxable. Therefore, a settlement of $2,580 was reached with the <br />Department of Revenue. That amount reflects a proration of the recycling <br />fee between the taxable and tax exempt service elements. <br />The City Administrator recommended approval of the Solid Waste <br />Management Tax Settlement Agreement as presented. <br />Keis introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 2014-8-147 — APPROVING THE SOLID WASTE <br />MANAGEMENT TAX SETTLEMENT AGREEMENT WITH THE <br />MINNESOTA DEPARTMENT OF REVENUE AND AUTHORIZING <br />7 <br />