Pearland to reallocate grant funds, delay vehicle payments after $10M budget shortfall error

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Pearland to reallocate grant funds, delay vehicle payments after $10M budget shortfall error
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Pearland City Council has given final approval to a budget amendment that adjusts for a...

, the 2023 budget general fund will collect $4.7 million less in property tax revenues. In addition, the city's debt service fund has decreased by $5.6 million.

The council also met in executive session on Monday to consult with the city attorney on what the meeting agenda described as"potential litigation and audit associated with Fiscal Year 2023 Tax Calculations," but took no action after reconvening.Pearland to hire legal counsel over $10.3M budget shortfall and begin search for city manager

Approval of the budget amendment came after Kamkar unsuccessfully proposed a $4.7 million budget cut from discretionary spending. His motion failed 2-4 with Owens voting with him to support it. "I would hate to make a move at the end of the second reading , without knowing what the implications are when you start moving around service funds, and it's not staff's recommendation," Carbone said in response to Kamkar's motion.PEARLANDMayor Kevin Cole has admitted the steps are a reaction to the immediate problem. He has said the city will likely have to look ahead to the 2024 and 2025 budgets to determine the long-term impacts of the current budget issue.

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