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HomeMy WebLinkAbout13 - Contract ClassesCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 13 December 12, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Wes Morgan, Director Recreation & Senior Services Department — 644 - 3157 - wmorgan(a),citv.newport- beach.ca.us SUBJECT: Budget Amendment — Contract Classes RECOMMENDATION Approve a budget amendment to increase Revenue by $378,000 and Expenditures by $332,968. BACKGROUND The PB &R Ad Hoc Budget Committee followed by the full PB &R Commission have each reviewed and approved the staff recommendation to City Council for this Budget Amendment. DISCUSSION Contract classes are expected to grow by 38% in FY 2006 /07 with increased enrollment in surf camps, specialty camps, sailing and pre - school programs. Staff could not have predicted such growth, and past years increases had been based on a 5% annual growth. The continued growth stems from the popularity of City summer program offerings, the great summer weather, as well as offering residents the opportunity to register in mid - February instead of May. Staff has also worked with local hotels, the Newport Beach Visitor & Conference Bureau, and stores to place the Summer Class and Camp Information in stores to give tourists an opportunity to participate. The majority of expenditures ($272,160) will cover the additional payments to contract instructors who provide the classes /camps. As programs increase in size, additional funding is needed to help off -set costs for additional facility maintenance and repair, mailing, office supplies, printing, and additional pages in the Newport Navigator. With the additional increase in customer service and supervision of the program, staff requests additional funding for part-time staffing which will include a part-time Recreation Clerk (providing customer service, registration, answering phones, and assisting customers with questions, etc.); part- time Senior Recreation Leader II to help with the "auditing of increased classes /camps and the assistance with the preparation of the summer and seasonal programs. A one -time expense of $5,000 (4330 -8250) will be used to purchase office equipment, computer and supplies for the start-up of the part-time employees and will be used in FY 2006/07. Revenue projections reflect an additional increase of $378,000 in FY 2006/07 budget. The revenue and expenditures will be ongoing for future budget years (expect 4330 -8250 funds) REQUESTED FUNDING BREAKDOWN Revenue • Increase Revenue acct. 4330 -5150 — Fee -Based Classes' 275,000 • Increase Revenue acct. 4330 -5158 — Surfing Classes 80,000 • Increase Revenue acct. 4330 -5160 — Sailing Classes 23.000 $378,000 Increase in revenue originates from the number of participants and camps offered in summer 2006, which included the 19th Street Wave Crashers, Ocean Adventures Science Camps, Destination Science Camps, and from classes offered through the Newport Navigator (Polynesian dance, digital photography, computer, violin, Baby Boot Camp Exercise Class, guitar, body sculpting, etc.). Budget Amendment — Contract Classes December 12, 2006 Page 2 Expenditures • Increase Expenditure acct. 4330 -8080 — Prof. & Tech. Services 272,160 • Increase Expenditure acct. 4330 -70xx— Salaries & Benefits 33,808 (Includes .60 FTE - PT Sr. Recreation Leader II &.50 FTE — PT Recreation Clerk) • Increase Expenditure acct. 4330-8100— Travel & Meetings 1000 • Increase Expenditure acct. 4330-8105— Training 750 • Increase Expenditure acct. 4330-8200— Special Department Supplies 3250 • Increase Expenditure acct. 4330-8250— Special Department (one -time cost) 5000 • Increase Expenditure acct. 4310-8050— Postage, Freight 2000 • Increase Expenditure acct. 4310-8030— Maintenance & Repair of Equipment 2000 • Increase Expenditure acct. 4310-8140— Office Supplies 7000 • Increase Expenditure acct. 4510-8250— Newport Navigator Printing 6000 Submitted by: Matthew Lohr, Recreation Manager Approved by: r)m /'� Wes Morgan, Director $332,968 City of Newport Beach NO. BA- 07BA -031 BUDGET AMENDMENT 2006 -07 AMOUNT: $33z,ge6.00 EFFECT ON BUDGETARY FUND BALANCE: X Increase Revenue Estimates Increase in Budgetary Fund Balance X Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance Transfer Budget Appropriations X No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations from additional estimated revenues NX from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To inc rev & exp to cover additional costs associated with increased enrollment in contract classes and recognize the additional revenue collected from the increased enrollment. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 010 3605 REVENUE ESTIMATES (3609) Fund/Division Account 4330 5150 4330 5158 4330 5160 EXPENDITURE APPROPRIATIONS (3603) vision Account 4330 8080 4330 7030 4330 7425 4330 7460 4330 8100 4330 81.05 4330 8200 4330 8250 4310 8050 4310 8030 4310 8140 4510 8250 Signed: Description General Fund - Fund Balance Description Fee Based Classes - Fee Based Classes Fee Based Classes - Surfing Classes Fee Based Classes - Sailing Classes Amount Debit Credit $45,032.00 $275,000.00 $80,000.00 $23,000.00 Description Fee Based Classes - Services: Prof & Tech $272,160.00 Fee Based Classes - Salaries: Temporary $32,137.00 Fee Based Classes - Medicare Fringes $465.86 Fee Based Classes - Retirement Part Time . $1,205.14 Fee Based Classes - Travel & Meetings $1,000.00 Fee Based Classes - Training $750.00 Fee Based Classes'- Special Dept Supplies $3,250.00 Fee. Based Classes - Special Dept Expense 5,000.00 Support Services - Postage, Freight $2,000.00 Support Services - Maint & Repair. Equip 2,000.00 Support Services - Supplies: Office $7,000.00 Rec & Sr Svcs Admin - Special Dept Exp $6,000.00 /-2 nisTrative�'dl;rvices Director Date City Manager Date Signed: City Council Approval:. City Clerk Date