Title
Consider adopting Ordinance No. 3757 approving an amendment to the City's Fiscal Year 2021-22 Budget to provide funds for expenses not originally anticipated at the time of adoption of the budget; and take appropriate action.
Body
BACKGROUND:
On February 1, 2022, the City Council approved Resolution No. 2022-017 authorizing the City Manager to enter into a firm services agreement with TexasCityServices LLC for sales and use tax analysis services. TexasCityServices LLC provides services on a contingent basis, as approved through Resolution No 2022-01, that has resulted in over $500,000 of revenue to the City during the first quarter of service to the city. The approved resolution did not provide for payments related to such service as an expenditure item and TexasCityServices LLC has since invoiced the City $150,000 for payments due as a result of services provided. The approved Resolution No. 2022-017 is attached, which includes the associated contract.
DISCUSSION:
Ordinance No. 3757 proposes to amend the Fiscal Year 2021-22 Budget to provide a means of paying for services as an expenditure item performed under the agreement with TexasCityServices LLC. The amount of funds needed is contingent upon the result of the work performed under the agreement and the impact to funds credited to the City for sales tax.
Staff is requesting that the expenditure budget be amended by $500,000 to provide for estimated future payment of services rendered under the agreement recognizing that payment of these expenditures is directly contingent upon the revenues received and collected by the City.
FISCAL IMPACT:
1. To Be Determined - Sales Tax Revenue will increase if expenditures are incurred.
DISTRICT:
All districts.
RECOMMENDATION:
City Administration recommends adopting Ordinance No. 3757 approving an amendment to the Fiscal Year 2021-22 Budget to provide funds for expenses not originally anticipated at the time of adoption of the budget.
POSSIBLE COUNC...
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