TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director
1. Subject
title
Appropriation of $77,592.10 in revenue from Recreation Classes and User Group Maintenance Fees.
body
2. Summary
Collected revenues are recommended to be appropriated for Fiscal Year 2023-2024 payments for contract class instructors for the City’s Recreation class programs and reimbursement from User Group Maintenance Fees to the City for sports field maintenance costs.
3. Recommended Action
recommendation
1. Accept into the City’s General Fund revenue budget $77,592.10 in recreation class revenue and user group maintenance fees to:
100.7001.46540.00000 Recreation Classes $54,055.40
100.7022.42480.00000 User Group Maintenance Fees $23,536.70
2. Authorize the General Fund appropriation of $61,375.48 to:
100.7011.51670.00000 Other Prof. & Consulting Services $37,838.78
100.7022.51424.00000 User Group Maintenance $23,536.70
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4. Fiscal Impact
There is no direct fiscal impact to the City. The additional revenue received from these programs will fund the expense for the programs
5. Strategic Plan Goals
Goal 2: Be a fiscally healthy community.
a: Expend fiscal resources responsibly.
Goal 3: Enhance and promote quality of life in the community.
b: Deliver high quality and safe recreational, social, environmental, educational, and cultural services.
6. Discussion and Background
Recreation Class Programs
The City offers recreational classes to the community through quarterly sessions conducted by contract instructors. Each contract instructor sets their class rates and agrees to a revenue sharing model (percentage split), wherein the City retains a portion of the revenue generated by class registration. Contract Class instructors are paid their revenue share through the General Fund (100) after the quarter is completed.
Historically, the City has budgeted both revenue and expenditures for the Recreation classes through the annual budget process. With the Community Services Department’s expansion of services and other programming, the City Council approved modifications to the contract class budget to direct limited resources to other programs without significantly impacting the General Fund (100). The Fiscal Year 2023-2024 (FY24) expenditure budget was reduced, and the revenue portion was not budgeted. Therefore, beginning FY24, staff periodically requests that the City Council accept unbudgeted revenue generated through the contract class program into the budget and appropriate a percentage of that revenue into the expenditure budget to pay the contract class instructors. This method allows the City to use program revenue to pay the contract class instructors, better linking the revenue to the corresponding expenditure and minimally impacting the existing General Fund (100) balance.
The winter 2024 contract class quarter, which generally encompasses January, February, and part of March, concluded on March 16, 2024. The winter class revenue received in FY24 is $54,055.40. At this time, staff is requesting that this revenue be accepted into the City’s FY24 budget. Additionally, staff is requesting $37,838.78 of the revenue be appropriated into the corresponding expenditure account to compensate the instructors for the quarter.
Sports Field Maintenance
The Community Services Department developed a cooperative program with ongoing youth sports groups to fund annual maintenance and renovation of sports fields, based on significant wear resulting from repetitive use. User groups reimburse the City based on a formula for multi-use fields, or actual amounts for work performed on a single-user field. This process allows for equitable contributions by each user group and avoids any potential liability issues that may arise from unauthorized contractors doing work on City property.
The City billed a total of $8,426.69 to six user groups for applicable field maintenance at El Modena Park this Fiscal Year to date. These groups are CSR, Olive Pony, Orange Lutheran High School, Oso Baseball, and Stars and Delta. Additionally, the City billed an additional $15,110 to South Sunrise Little League for recent infield renovations per their request at McPherson Athletic Facility. Therefore, staff is requesting that a total of $23,536.69 be accepted into the City revenue budget and then be appropriated into the corresponding expenditure account to cover these maintenance expenses.
The summary of revenue sources is below.
Summary of Revenue Sources
The total revenue appropriation request is $ $77,592.10
|
Revenue Source |
Total Collected |
Location |
|
Recreation Classes |
54,055.40 |
Various |
|
CSR |
3,537.35 |
El Modena Park |
|
Olive Pony |
3,531.72 |
El Modena Park |
|
Orange Lutheran High School |
1,126.35 |
El Modena Park |
|
Oso Baseball |
108.03 |
El Modena Park |
|
Stars and Delta |
123.25 |
El Modena Park |
|
South Sunrise Little League |
15,110.00 |
McPherson Athletic Facility |
|
Total |
$77,592.10 |
|
7. ATTACHMENTS
• None