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Home My WebLink About10092-11 Creating Morris Performing Arts Center/Palais Royale Ballroom Box Office Fund #725 O RD I NAN C E N o . 10092-�� Passed by the Common Council of the City of South Bend, Indiana May 23, 2011 Attest: City Clerk JOHN VOORDE Attest: President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana May 24, 2011 City Clerk JOHN VOORDE Approved and signed by me May 2 5 20 11 /�-�-�' May�r r � ._• ORDINANCE NO. l d b��`�, AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, CREATING A MORRIS PERFORMING ARTS CENTER/PALAIS ROYALE BALLROOM BOX OFFICE AGENCY FUND (#725) STATEMENT OF PURPOSE AND INTENT The Morris Performing Arts Center("Morris") and Palais Royale Ballroom ("Palais") collect certain revenue payments and deposits in advance of events at the facility. From these receipts, certain event expenses are paid to promoters and other vendors. Upon completion of the event, an event accounting settlement is prepared and the net revenue or profit is realized by the City and transferred to the General Fund or other appropriate City fund. During the recent audit of City by the State Board of Accounts, it was discussed with City Administration that it may be beneficial to set up a separate "agency" fund to account for these transactions. An agency fund is a common governmental fund type that is used to account for monies that are collected for and remitted to other entities (i.e. payroll tax withholding). An agency fund does not record revenue and expenditures and, thus, is not subject to annual appropriation. An agency fund records only cash and liability transactions. Thus, it is in the best interest of the City of South Bend to establish a Monis Performing Arts Center/Palais Royale Ballroom Box Office Agency Fund 725. The new fund 725 will be a non- reverting fund and may earn interest on outstanding cash balances which will be used to offset bank charges, with any remaining amounts distributed to the General Fund or other appropriate City fund. Fund 725 will not be subject to appropriation by the City of South Bend Common Council but will be reported in the City Controller's Cash Report, the City and Town Annual Report and other similar accounting reports. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA as follows: SECTION I . A Morris Performing Arts Cenfer/Palais Royale Ballroom Box Office Agency Fund 725 will be established effective June 1, 2011. This fund shall be non-reverting and may earn interest on outstanding cash balances. The fund will not be subject to appropriation by the City of South Bend Common Council. SECTION II. The City Controller shall be authorized to take all administrative steps necessary to establish this fund, including the cash transfer of monies held in the Palais Royale liability account in the General Fund to this new agency fund. SECTION III. This ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. � . • Member, South Bend Common Council Attest: City Clerk ' Presented by me to the Mayor of the City of South Bend, Indiana on the 2-`� ) day of _�� l �2�1.1 , at ',20 o'clock�.m. ^� � City lerk � ��-y``�"-� A�roved and signed by me on the �3�� day of , 2�� , at J o'clock,�.m. Mayor, City o uth Bend, Indiana F:\DATA\SHARE\Legal\Wpdata�AMD\Ordinances\Fund 211 CED Administration Fund 111610.doc F�� -....�...,,3�_, e � ��?��S ��'�� t st READING S�� M�Y . _t ` � ZOri � PUBLlC HEARING S Z-3 � � ' 3 rd READING S_.Z,�—�, .d�!„1�� '�-°._.. �.,! . NOT APPROYhD C�TMCE��K'��U�`�f$3EN�,tt� . REFERRE� "'�-----�m_,__,� � PASSEf1, S'Z3�� TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 26-11 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, CREATING A MORRIS PERFORMING ARTS CENTER/PALAIS ROYALE BALLROOM BOX OFFICE AGENCY FUND (#725) RespectFully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. This bill was heard by the Pares Committee. Timothy Rouse Chairperson, Committee of the Whole �o�soU Tx 8��\ r,� �� x� �V t��= w �,►� y , ��t �r�.°~';R a� 186� CITY OF SOUTH BEND STEPHEN J. LUECKE,MAYOR DEPARTMENT OF ADMINISTRATION & FINANCE GREGG D.ZIENTARA CONTROLLER May 4, 2011 Mr. Derek Dieter President, South Bend Common Council 4�h Floor, County-City Building South Bend, IN 46601 re: Ordinance to Create Agency Fund 725 Morris Performing Arts center / Palais Royale Ballromm Box Office Agency Fund Dear President Dieter: The Morris Performing Arts Center ("Morris") and Palais Royale Ballroom ("Palais") collect certain revenue payments and deposits in advance of events at the facility. From these receipts, certain event expenses are paid to promoters and other vendors. Upon completion of the event, an event accounting settlement is prepared and the net revenue or profit is realized by the City and transferred to the General Fund or other appropriate City fund. During the recent audit of City by the State Board of Accounts, it was discussed with City Administration that it may be beneficial to set up a separate "agenc�' fund to account for these transactions. An agency fund is a common governmental fund type that is used to account for monies that are collected for and remitted to other entities (i.e. payroll tax withholding). An agency fund does not record revenue and expenditures and, thus, is not subject to annual appropriation. An agency fund records only cash and liability transactions. Thus, it is in the best interest of the City of South Bend to establish a Morris Performing Arts Center/Palais Royale Ballroom Box Office Agency Fund 725. The new fund 725 will be a non-reverting fund and may earn interest on outstanding cash balances which will be used to offset bank charges, with any remaining amounts distributed to the General Fund or other appropriate City fund. Fund 725 will not be subject to appropriation by the City of South Bend Common Council but will be reported in the City Controller's Cash Report, the City and Town Annual Report and other similar accounting reports. Controller Zientara will present this Bill to the Common Council at the appropriate Council Committee meeting, public hearing and at the Council meeting. City Administration is available to discuss any matters concerning this Bill at the convenience of the Council. Regards �1��'� I� �+��t��';�u��W ��'�_� � k � Gregg t ra MAY �' �t ZUi I � i cc: St h n J. Luecke, Mayor of the City of South Bend ��;��;q'�y-�°"""` CIT'Y CLE�i�,��U r f��,qP� ' Count -Cit Buildin 227 West Jefferson Boulevard South Bend Indiana 46601-1830 � Y Y � ' �V� Phone:574/235-9216 Fax: 574/235-9928 TDD: 574/235-5567