HomeMy WebLinkAboutInstructional Recreational Class Program Budget Amendment Council/Agency Meeting Held: &ZAO
Deferred/Continued to:
)I-Approved ❑ Conditionally Approved ❑ Denied City le 's S natur
Council Meeting Date: August 2, 2004 Department ID Number: CSO4-021
CITY OF HUNTINGTON BEACH 7 '� �r ' '�
REQUEST FOR COUNCIL ACTION
a
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL EMBERS
SUBMITTED BY: PENELOPE CU RET RAFT, City Admi for 'r;
PREPARED BY: JIM B. ENGLE, Director, Community Servic
SUBJECT: APPROVE INSTRUCTIONAL CLASS BUDG AMENDMENT
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: A budget amendment is necessary due to revenues and associated
expenses for recreational classes exceeding original budget projections.
Funding Source: An appropriation of $280,000 from the General Fund Unappropriated
Fund Balance into Instructional Classes-Other Contract Services Account #10045406.69450;
expenditures will be offset by $400,000 in revenue generated by instructional classes.
Recommended Action: Authorize the appropriation of $280,000 from the General Fund
Unappropriated Fund Balance into Instructional Classes-Other Contract Services Account
#10045406.69450 to pay recreation class instructors.
Alternative Action(s): Cancel classes and refund revenues to participants.
F
Analysis: The'lnstructional Recreational Classes Program has shown consistent growth for
the past decade. In fiscal year 98/99, revenues were $699,000; in 99/00 revenues were
$754,000; in 00/01 revenues were $820,000; in 01/02 revenues were $1,230,000 and, in
02/03 revenues were $1,530,000. In 2003/2004, revenues were originally projected to be
$1,330,000. Summer class registration has significantly surpassed projections. Also, with
the addition of classes at the Seniors' Center and the City Gym and Pool, and upward growth
at Edison and Murdy Community Centers, revenues for instructional classes are exceeding
optimistic projections by approximately $400,000 for a total revenue of $1,730,000. This
creates a budget shortfall of $280,000 to pay instructors out of the General Fund Other
Contract Services Account #10045406.69450. Instructors receive seventy percent of the
class revenue; city receives thirty percent of the revenue. If the public does not continue to
sign up at the rate projected, it would not be necessary to pay out the full amount of instructor
wages and the excess funds would be returned to the General Fund.
krQUEST FOR COUNCIL ACTIuN
MEETING DATE: August 2, 2004 DEPARTMENT ID NUMBER: CSO4-021
Council Policy regarding Requests for Appropriation of Funds: As adopted by City
Council in March, 1998, all requests for appropriation of funds must meet one of the following
criteria: (1) the request is for an unanticipated emergency, (2) the request is required to
implement labor negotiations, or (3) the request will be offset by related new revenues. The
new appropriation being requested will be offset by related new revenues from the
participation fees charged to the public for recreational classes. As noted above, the city
receives 30 percent of the revenue charged to the class; instructors are paid 70 percent of
the class fees. Expenses are projected to be $280,000 with $400,000 in new revenue.
Environmental Status: NIA
Attachment(s):
City Clerk's
Page Number No. Description
1. FIS
RCA Author: JBE:JL:cr
GARCA\2004\04-021 Instructional Classes Budget Amendment.doc -2-
7/22/2004 2:15 PM
ATTACHMENT # 1
LsOr/-o2/
CITY OF HUNTINGTON BEACH
T° INTERDEPARTMENTAL COMMUNICA TION
To: Penelope Culbreth-Graft, City Administrator
From: Clay Martin, Director of Administrative Services
Subject: FIS 2004 — 31 Approve Instructional Class Budget
Amendment
Date: July 22, 2004
As required by Resolution 4832, this Fiscal Impact Statement has
been prepared for "Approve Instructional Class Budget Amend"
If the City Council approves this action (total appropriation $280,000),
there will be no effect on the General Fund balance since the amount
is offset by new revenue.
a C4::�
Clay Marti
Director Administrative Services
RCA ROUTING SHEET
INITIATING DEPARTMENT: COMMUNITY SERVICES
SUBJECT: APPROVE INSTRUCTIONAL CLASS BUDGET
AMENDMENT
COUNCIL MEETING DATE: August 2, 2004
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Financial Impact Statement (Unbudget, over $5,000) Attached
Bonds (If applicable) Not Applicable
Staff Report (If applicable) Not Applicable
Commission, Board or Committee Report (If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FOR RDED
Administrative Staff ( } (
Assistant City Administrator (Initial) ( ) { }
City Administrator Initial
City Clerk ( )
EXPLANATION FOR RETURN OF ITEM:
(Beiow SpaceFor Only)
REQUEST FOR LATE SUBMITTAL
(To accompany RCA's submitted after Deadline
Department: Comm Serv. Subject Approve Instructional Classes Budget
Amendment
Council Meeting Date: 8/2104 Date of This Request: 7122/04
REASON (Why is this RCA being submitted late?): There has been a dramatic increase
in the summer recreation class registration over the past four weeks. We are
running out of funds to pay instructors. Revenue is projected to be $400,000 higher,
but 70% of revenue needed to be budgeted to pay instructors.
EXPLANATION (Why is this RCA necessary to this agenda?): Contract instructors
need to be paid, but there is insufficient funds budgeted. Seventy percent of projected
new revenue needs to be budgeted. Council approved required.
CONSEQUENCES (How shall delay of this RCA adversely impact the Ci ?):
City owes instructors money for work completed. For many of these instructors, this
is their only source of income to support themselves.
Signature: Approved O Denied
Department I leadr Penelope Culbret -Graft
City Administrator
FISCAL IMPACT STATEMENT QUESTIONNAIRE
1. Title of RCA: Approve Instructional Class Budget Amendment
2. Why is this budget amendment needed:
Summer classes are so successful that they are surpassing budgeted revenues and
expenses
A. Why was it not anticipated?
Community participation exceeded projections.
B. Why can't anticipated current year budget savings be used to fund this item?
No savings available
C. Why can't the Department re-prioritize current year expenses so that this item
can be funded instead of approved budget items?
Reprioritizing programs would negatively impact another segment of community.
3. What will be the cost?
Cost of $280,000 offsest by $400,000 in additional new revenue
A. Direct Cost:
Current Fiscal Year: $280,000
Future Years: 0
B. Indirect Cost: $0
4. Funding Source:
A. Fund: General Fund
B. Specific Revenue Source: Class registration fees from public
C. Alternative Funding Sources:
5. History:
See RCA attached.
Instrucitonal Class Budget Amendment 7/23/2004 10:40 AM