Title
An Ordinance approving Amendment No. 4 to the budget for the Fiscal Year ending June 30, 2021, as adopted by Ordinance No. 8905 and Ordinance No. 8906, by amending the authorized expenditures in the Business & Industry Fund for the City of Lee’s Summit, Missouri.
(Note: First reading by Council on December 15, 2020.)
Body
Issue/Request:
An Ordinance approving Amendment No. 4 to the Budget for the Fiscal Year ending June 30, 2021, as adopted by Ordinance No. 8905 and Ordinance No. 8906, by amending the authorized expenditures in the Business & Industry Fund for the City of Lee’s Summit, Missouri.
Key Issues:
The Business & Industry (B&I) Fund contains the expenditures for the Public Service Agreements (PSA). The revenue source for the B&I Fund is the Hotel/ Motel Tax. When the FY21 Budget was approved by the City Council, the decision was made to budget the hotel/ motel tax revenues for the full year and provide six months (half of the normal expenditure amount) of funding to the PSA organizations.
After presentations to the Finance and Budget Committee and the full City Council, direction was given to City staff to prepare an ordinance outlining extensions to the PSA contracts for the second half of the fiscal year. A budget amendment is needed to authorize the additional expenditures in the Business and Industry Fund.
This proposed budget amendment number 4 is for the Business and Industry Fund that will be allocated to the Downtown Lee’s Summit Main Street, Lee’s Summit Economic Development Council, and Velocity Lee’s Summit, Inc. pursuant to public service agreements.
Proposed City Council Motion:
I move for adoption of an Ordinance approving Amendment No. 4 to the Budget for the Fiscal Year ending June 30, 2021, as adopted by Ordinance No. 8905 and Ordinance No. 8906, by amending the authorized expenditures in the Business & Industry Fund for the City of Lee’s Summit, Missouri.
Background:
At the Finance and Budget Committee meeting on November 9, 2020, and the City Council meeting on December 1, 2020, information on the PSA contracts and the Business and Industry Fund was discussed. From those meetings direction was given by the City Council to bring forward the extensions to the PSA contracts, which caused the need for this budget amendment.
Impact/Analysis:
The budget amendment is a request to increase the authorized expenditures in the Business and Industry Fund by $99,015.06.
Other Information/Unique Characteristics:
The purpose of the budget amendment is to authorize additional funds for the extension of the PSA contracts.
Presenter
Steve Arbo, City Manager
Chris Clubine, Management Analyst
Recommendation
Staff recommends approval of the budget amendment.