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Home My WebLink About24 - Surfing-Sailing-Tennis Reserve AccountsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT ' Agenda Item No. 24 (February 26, 2008) TO: Mayor and Members of the City Council FROM: Recreation & Senior Services Department Wes Morgan, Director 949 - 644 -3157 — wmorgan(o ) citV.newport- beach.ca.us SUBJECT: Budget Amendment— Surfing /Sailing/Tennis Reserve Accounts DISCUSSION SURFING/TENNIS /SAILING RESERVE ACCOUNTS Each Fiscal Year, the Recreation & Senior Services Department prepares a City Council Report for the transfer of funds from the reserve accounts into the General Fund by City Council Policy B -2. City Council Policy B -2 states that Instructional Recreation Activities will provide 20% of the gross revenue derived from the instructional classes in surfing, tennis, and sailing be set aside annually for the purpose of purchasing or replacing equipment, refurbishing tennis courts or developing new recreational programs or facilities. This year, staff is requesting funds for projects list below, with more detail provided on page 4 of this report: • Funds from Surfing Reserve account ($67,500) will be used to purchase an additional computer and software licenses to handle the increased registration for surf camps and summer programs and to replace aging surfboards and equipment and provide the community with a summer camps brochure. The current balance in this reserve account is $ 161,810. • Funds from Tennis Reserve account ($26,780) will be used for tennis and basketball court resurfacing and to purchase tennis supplies and equipment. The current balance in this reserve account is $ 61,225. • Funds from Sailing Reserve account ($ 20,000) will be used for repair to 12 Sabots and 4 Lidos for the City sailing program. Also the City will replace 4 sabots this year. The current balance in this reserve account is $68,825. RECOMMENDATION Approve a budget amendment in the amount of $114,280. Please transfer funds from the following accounts (page 2) as these funds are necessary to enhance the City's recreational programs. Budget Amendment — Surfing /Sailing /Tennis Reserve Accounts Amount From To 24,025 010 -3742 - Tennis Reserve Acct 4330 -8080 2,755 010 -3742 —Tennis Reserve Acct 4330 -8200 $ 26,780 6,250 010 -3741 —Sailing Reserve Acct 4330 -8080 13,750 010 -3741 — Sailing Reserve Acct 4330 -8250 $ 20,000 5,000 010 -3740 — Surfing Reserve Acct 4330 -8050 6,750 010 -3740 — Surfing Reserve Acct 4330 -8080 7,500 010 -3740 — Surfing Reserve Acct 4330 -8200 32,500 010 -3740 — Surfing Reserve Acct 4330 -8250 6,500 010 -3740 — Surfing Reserve Acct 4340 -8200 5,750 010 -3740 — Surfing Reserve Acct 4340 -9010 3_,500 010 -3740 — Surfing Reserve Acct 4380 -8200 $ 67,500 $714,280 Prepared by: Submitted Matthew Lohr, Recreation Manager es Morgan, Recreation & Attachments: 1. Breakdown of Funds 2. Council Policy B -2 Page 2 Director Budget Amendment — Swfang/Satding/Tennis Reserve Accounts BREAKDOWN OF FUNDS Surfing Reserves Account 010 -3740 Printing of publication 20,000 Graphic Design Services (web) 2,500 Advertising & Marketing 10,000 Mailing 5,000 Tax & shipping estimate 2,500 $ 40,000 Computer for Pools 5,000 Rec -Ware Licenses 4,000 Tax & shipping estimates 11000 $10,000 Misc. Equip. & Supplies 9,000 (Summer Camp & Aquatic Programs) Taxes & Shipping 11000 $10,000 Surf Boards 6,500 Tax and Stripping 1000 $7,500 Sailing Reserves Account 010 -3741 20 0 0 4 New Sabots 12,000 Supplies for boats 6,000 Tax & Shipping 2,000 $ 20,000 Tennis Reserves Account 010 -3742 2 780 Park/Type of Court Resurfacing Las Arenas - Tennis 11,600 Las Arenas - Basketball 1,625 Bonita Creek - Basketball 2,850 San Miguel — Basketball 3,600 Newport Island — Basketball 1350 Contingency 3,000 $ 24,025 Tennis Supplies 2405 (Rol Dri Units, Nets, Balls, Signage) - Tax & shipping estimate 250 $ 2,755 Total Budget Amendment $114,280 Page 3 RE INSTRUCTIONAL RECREATION ACTIVITIES The instructional recreational programs for children and adults provided by the Recreation & Senior Services Department will be conducted on the basis of being at least self - supporting. Registration fees will be based on an amount sufficient to acquire independent contractors, class materials and the administrative overhead and a facility use fee. Occasionally, it may be necessary to conduct a specific class in which revenues are not sufficient to be self - supporting. However, each total recreation program, such as tennis, sailing, surfing, etc., will be at least self- supporting. The Recreation & Senior Services Director or designee is authorized to enter into agreements for securing independent contractors for approved instructional recreation activities. A sum of money equivalent to 20% of the gross annual revenues derived from the instructional classes in surfing shall be set aside and used for the purpose of purchasing new or replacement surfboards or development of aquatic and surf related activities. A total .of.20 %: of the registration fees from tennis instructional classes shall be set aside annually. for refurbishment or development of courts or development of new recreational.programs:or facilities. A total of 20% of the registration fees from the sailing. instructional classes and 100% of the proceeds from the agreement for the use of the 29th Street public dock shall be set aside annually for refurbishment and replacement of the recreation sail boat fleet and development of waterfront activities program. Adopted - October 1963 Amended - August 30,1966 Amended - November 25,1 968 Amended - March 1970 Amended - ApriI 12,1971 Amended - August 9,1971 Amended - February 14,1972 Amended - March 13,1972 Amended - November 11, 1974 Amended - March 24,1975 Formerly I-6 Formerly I -2 Amended - December 8,1975 Amended - November 27,1978 Amended - November 28,1988 Reassigned - January 24,1994 Amended - February 27,1995 Amended - December 14,1998 Amended - May 8, 2001 Amended - April 8, 2003 Amended - April 13, 2004 Amended - September 13, 2005 Amended - October 10, 2006 City of Newport Beach NO. BA- 08BA -051 BUDGET AMENDMENT . 2007 -08 AMOUNT: $11a,zao.00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase in Budgetary Fund Balance Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance PX Transfer Budget Appropriations PX No effect on Budgetary Fund Balance SOURCE: from existing budget, appropriations from additional estimated revenues from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To transfer budget appropriations to enhance the City's recreation programs. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Amount Fund Account Description Debit Credit 010 3740 General Fund - Surfing Reserve $67;500.00 010 3741 General Fund - Sailing Balance $20,000.00 * 010 3742 General Fund - Fund Balance $26,780.00 * REVENUE ESTIMATES (3601) Account Number 8250 Fund/Division Account Description 4340 EXPENDITURE APPROPRIATIONS (3603) Automatic Signed: Financial Approval: Administrativ Services Director Signed: Administrative App al: City Manager $37,025.00 $5,000.00 $10,255.00 $46,250.00 $6,500.00 $5,750.00 $3,500.00 `C)8 Date 'Zl.z-ola 'r Date/ Signed: City Council Approval: City Clerk Date Description Division Number 4330 Recreation - Fee Based Classes Account Number 8080 Services - Professional & Technical Account Number 8050 Postage, Freight, Express, etc. Account Number 8200 Special Department Supplies Account Number 8250 Special Department Expense Division Number 4340 Recreation - Aquatics Account Number 8200 Special Department Supplies Account Number 9010 Computer Equipment Division Number 4380 Recreation - Youth After School /Camps Account Number 8200 Special Department Supplies Automatic Signed: Financial Approval: Administrativ Services Director Signed: Administrative App al: City Manager $37,025.00 $5,000.00 $10,255.00 $46,250.00 $6,500.00 $5,750.00 $3,500.00 `C)8 Date 'Zl.z-ola 'r Date/ Signed: City Council Approval: City Clerk Date