HomeMy WebLinkAboutord1990-051WHATCOM COUNTY COUNCIL AGENDA BILL NO. 90 -180
CLEARANCES' Initial Date Date Received in Council Office: Agenda Date: Assigned To:
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Originator- Executive
5/22/90 CounSil /Intro
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Division Head - _ 6/12/90 Finance /Council .
rN11 AY 16 1990
WHATCOM COUNTY
COUNCIL i
SUBJECT.•
Ordinance to establish an account in Auditor's Office to pay federal taxes
ATTACHMENTS:
Ordinance
Public Hearing Needed? Yes // No //
SUMMARY STATEMENT:
Due to new federal requirements, the County needs to have a special account with sufficient
cash in it to pay in a timely way any IRS employment - related taxes, bath for the county and
for any special districts it serves. This ordinance sets up such an account.
RECOMMENDED ACTION.'
Pass
COMMITTEE ACTION (including dates):
COUNCIL ACTION (including dates):
6 -12 -90 Passed
Related File Numbers. Ordinance or Resolution Number: 0 90 -51
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IRSRevFd.590 INTRODUCED BY: Consent
PROPOSED BY: Executive
'DATE: May 11, 1990
ORDINANCE NO. 90 -51
ESTABLISHMENT OF AN AUDITOR'S
REVOLVING CHECKING ACCOUNT
FOR PAYMENT OF FEDERAL TAXES
WHEREAS, the Internal Revenue Service has mandated a new requirement that
any employers with more than $100,000 in undeposited social security and withheld
income taxes must deposit the required amount by the end of the next following
work day; and
WHEREAS, this new requirement places a burden on the County to ensure all
the special districts and agencies have sufficient cash deposited with the
Treasurer to allow timely payment of these amounts withheld; and
WHEREAS, it is in the interest of the County to make timely payments of
all amounts due, both from the government itself and for the districts it serves;
and
WHEREAS, the establishment of a revolving checking account as a reserve
on Current Expense Balance will allow timely payment of these obligations;
NOW, THEREFORE BE IT ORDAINED the Whatcom County Council hereby authorizes
the Treasurer to establish a revolving checking account in the amount of $20,000
for the County Auditor to draw upon if and when necessary for ensuring timely
payment of IRS employment related tax obligations. The Treasurer will draw a
treasurer's check from the Current Expense Fund to establish the revolving
account. Any agencies or special districts not having sufficient cash to meet
these obligations or failing to submit the required documents to the County
Auditor on the date they are due shall pay a $10 penalty or 5% of the amount
advanced, whichever is greater. This penalty shall be credited to the Current
Expense Fund when paid. All advances for this purpose shall be repaid with
penalty within one week.
ADOPTED this 12th
ATTEST:
Ramona Reeves, Council Clerk
APPROVED AS TO FORM:
Civil Deputy Prosecutor
day of June , 1990.
WHATCOM
WHATCOM
Donald /,d. $jtnsey,
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NGTON
(✓j Approved ( ) Denied
,�U L
Shirley Van Zanten, Cexecutive
Date: �, -13 -1 0