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 $109,530.60 in donations and revenue from the Community Partnership Program, Recreation class programs, Military Banners, and Community Garden plot fees.
body
2. Summary
Collected revenues of $109,530.60 are recommended to be appropriated for Fiscal Year 2023-2024, including donations through the Community Partnership Program, payments for contract class instructors for the City’s Recreation class programs, Military Banner Program, and fees for rental of garden plots in the City’s Community Garden. Staff is also recommending the City Council appropriate a total of $57,413.01 of this revenue into expenditure accounts to support the corresponding programs.
3. Recommended Action
recommendation
1. Accept into the City’s General Fund (100) revenue budget $109,530.60 in Recreation class revenue, garden plot fees, Military Banner donations, and special event donations through the Community Partnership Program to:
100.7001.46540.00000 Recreation Classes $ 72,705.30
100.7001.44210.20227 Garden Plot Fees $ 3,825.00
100.7001.48390.20054 Military Banner Program $ 3,000.30
100.7015.48390.20543 Donations - 2024 Special Event $ 30,000.00
2. Authorize the appropriation of $57,413.01 to General Fund (100):
100.7011.51670.00000 Other Prof. & Consulting Services $50,893.71
100.7001.51700.20227 Garden Plots $ 3,519.00
100.7001.51780.20054 Military Banner Program $ 3,000.30
end
4. Fiscal Impact
There is no direct fiscal impact to the City. The additional revenue received from these programs will offset costs of programs and/or 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
Community Partnership Program
The City’s annual Community Partnership Program solicits donations to support Citywide special events. The City’s donation policy states that single donations greater than $5,000 may only be accepted by the City Council.
Chapman University, Assemblymember Avelino Valencia, and Wilson Automotive became “Orange Tree” partners for the 2024 Special Event Season and each donated $10,000. Staff is requesting a total of $30,000 be accepted into the General Fund.
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 after the quarter is completed.
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 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 balance.
The spring 2024 contract class quarter, which generally encompasses March, April, and May, concluded on June 1, 2024. The spring revenue received in FY24 is $72,705.30. At this time, staff is requesting that this revenue be accepted into the City’s FY24 budget. Additionally, staff is requesting 70% or ($50,893.71) of the revenue be appropriated into the corresponding expenditure account to compensate the instructors for the quarter.
Community Garden Revenue
The City owns and operates 49 community garden plots located at 254 North Main Street. Registered gardeners are charged an annual lease fee of $75 per plot to cover the cost of utilities, infrastructure, and repairs of the community garden. Additionally, new gardeners are charged a $100 deposit to be returned if they clear their plot before vacating should they choose not to renew their lease. Community Garden revenue collected for 2024 to date totals $3,825.00. The City applies an 8% administrative cost to Community Garden revenue. Therefore, the revenue available for appropriation is $3,519.00.
Military Banner Donations
The Community Services Department offers a military banner program that honors active duty military Orange residents. The banners are funded by donations of $185 per banner and are posted on light poles throughout the Plaza and spoke streets. Donations received in the current fiscal year total $3,000.30 and need to be appropriated to the military banner expenditure account to purchase the banners.
The summary of revenue sources is below.
Summary of Revenue Sources
The total revenue appropriation request is $109,530.60
|
Revenue Source |
Total Collected |
Program/Location |
|
Chapman University |
10,000.00 |
Community Partnership |
|
Assemblymember Valencia |
10,000.00 |
Community Partnership |
|
Wilson Automotive |
10,000.00 |
Community Partnership |
|
Recreation Classes |
72,705.30 |
Various |
|
Garden Plot Rental Fees |
3,825.00 |
Community Garden |
|
Military Banner Program |
3,000.30 |
Various |
|
TOTAL |
109,530.60 |
|
7. ATTACHMENTS
• None