TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director
1. Subject
title
Acceptance of $112,159.88 in revenue received from the Recreation class program, 2024 Special Events donations, User Group field costs, and various other donations; and appropriation of $89,812.52 of the revenue to support corresponding programs.
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2. Summary
Collected revenues of $112,159.88 are recommended to be accepted for Fiscal Year 2024-2025, including payments for contract class instructors for the City’s Recreation class program, donations for the 2024 Special Events, for User Group field costs, as well as donations received from Kinder Morgan and the Orange Dog Park Association. Staff is recommending the City Council appropriate a total of $89,812.52 of this revenue into expenditure accounts to support the corresponding programs.
3. Recommended Action
recommendation
1. Accept into the City’s General Fund revenue budget $112,159.88 in Recreation class program revenue, various donations, and User Group maintenance fees to:
100.7001.46540.00000 Recreation Classes $41,157.88
100.7015.48390.20543 Donations - 2024 Special Event Season $10,000
105.7015.48390.30254 Donations - Movies in the Park $11,000
105.7015.48380.17552 Other Misc Revenue - Tree Lighting $19,610
100.7001.48390.00000 Donations $7,600
100.7022.42480.00000 User Group Maintenance Fees $20,794
105.7022.42480.00000 User Group Maintenance Fees $1,998
2. Authorize the appropriation of $ 89,812.52 into the General Fund:
100.7011.51670.00000 Other Prof & Consulting Services $28,810.52
105.7015.51670.30254 Other Prof & Consulting Services Movies in the Park $11,000
105.7015.51670.17552 Special Events $19,610
100.7022.51401.00000 Repairs to Buildings and Fixed Equipment $7,600
100.7022.51424.00000 User Group Maintenance $20,794
100.7022.51424.00000 User Group Maintenance $1,998
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4. Fiscal Impact
The revenue received from these programs will offset or fund the costs of programs, projects, and services.
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 Program Revenue
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.
Staff periodically request that the City Council accept unbudgeted revenue generated through the Recreation class program into the budget and appropriate a percentage of that revenue into the expenditure budget to pay the contract class instructors. This 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 first quarter of contract classes encompasses the months of July, August, and September. The revenue received in quarter one of Fiscal Year 2024-2025 (FY25) was $41,157.88. Staff is requesting that this revenue be accepted into the City’s FY25 budget. Additionally, staff is requesting 70% or ($28,810.52) of the revenue be appropriated into the corresponding expenditure account to compensate the instructors for the quarter.
Community Partnership Program
The City’s annual Community Partnership Program for the 2024 Special Event season solicited donations to support Citywide special events. On June 25, 2024, the City Council voted to cancel all FY25 special events after July 4, 2024 and eliminate General Funds for the remaining events, unless a non-profit organization either fully sponsored the event or took over the event. Several Community Partners who had already donated to the 2024 Special Event season prior to June, elected to allow the City to keep their donations which were used towards several events that had happened in spring/early summer 2024. Dave & Buster’s, Inc. and St. John’s Lutheran School of Orange who each donated $5,000 opted to maintain their financial partnership. The City’s donation policy states that single donations greater than $5,000 may only be accepted by the City Council. Therefore, staff is requesting a total of $10,000 to be accepted into the General Fund.
Special Event Donations
Fall Movie in the Park
American Youth Soccer Organization (AYSO) made a donation of $11,000 to sponsor the fall Movie in the Park event in its entirety. Staff is requesting a total of $11,000 be accepted as revenue and appropriated into the corresponding Reimbursable (105) expenditure account to cover the full costs of the event.
Tree Lighting and Candlelight Choir Procession
The Community Foundation of Orange (CFO) has taken on the role of accepting donations for the 2024 Tree Lighting and Candlelight Choir Procession event on behalf of the Orange Community Master Chorale. As of October 17, 2024 they have received $19,610 in donations. Staff is requesting a total of $19,610 be accepted as revenue and appropriated into the corresponding Reimbursable (105) expenditure account. This is the first payment received for the event at this time.
Kinder Morgan Donation
Kinder Morgan owns or operates thousands of miles of pipeline across various states, including a section of pipeline through Grijalva Park. As such, they are committed to supporting the communities in which they operate through their Community and Municipal Partnership program. A payment in the amount of $7,600 was pledged to be used towards Grijalva Park in December 2019 but never received. The payment was reissued in September 2024. Staff is requesting a total of $7,600 be accepted as revenue into the City’s FY25 budget and appropriated into the corresponding expenditure account.
Sport User Group Costs
The City currently has a joint-use agreement with Rancho Santiago Community College District (District) for the use of two soccer fields located at Santiago Canyon College (SCC) for education and recreational activities benefiting the community. Per the terms of the agreement, the District and the City agree to pay a fair share of the maintenance and utility costs associated with the use of the fields. Annually, the District and the City confer regarding the cost attributable to each party’s use and the City is billed for its share of the costs by the District, which is then passed on to the approved user groups. The City’s costs for Fiscal Year 2023-2024 (FY24) was $20,794.90.
Orange Junior Soccer Club (OJSC), one of the City’s approved youth sports groups, is currently the sole group permitted to use the SCC soccer fields; as such, the City billed OJSC for maintenance and utility costs incurred during FY24. Staff is requesting a total of $20,794.90 to be accepted as revenue and appropriated into the corresponding expenditure account.
Dog Park At Yorba Park Steam Cleaning
As part of the FY25 budget reductions, the City Council voted to reduce the City’s steam cleaning services by 50%. As a result, the steam cleaning at the Dog Park at Yorba Park was reduced from weekly to bi-weekly. The Orange Dog Park Association (ODPA) requested to revert the service back to weekly and offered to pay the difference at a cost of $1,998 from September 2024 through June 2025. Staff is requesting a total of $1,998 be accepted as revenue and appropriated into the corresponding account.
7. ATTACHMENTS
• None