HomeMy WebLinkAbout11 - Increase Revenue Estimates for Surfing Classes and OASIS Fitness CenterCTY OF
F
NEWPORT BEACH
City Council Staff Report
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May 12, 2015
Agenda Item No. 11
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Laura Detweiler, Recreation & Senior Services Director — (949) 644 -3157,
Ietweiler@newportbeachca.gov
Tam Ho, Budget Analyst
(949) 644 -3224
Budget Amendment to Increase Revenue Estimates and Expenditure Appropriations
for Private Surfing Classes and OASIS Fitness Center Personal Training Sessions
Recreation & Senior Services staff request approval of a budget amendment to increase revenue estimates
and expenditure appropriations associated with the increased participation of private surfing classes and
OASIS personal training sessions.
RECOMMENDATION:
Approve Budget Amendment No. 15BA -044 to increase surfing revenue estimates in account 4330 -5158
by $256,467 and related contract instructor expenditure appropriations for account 4330 -8380 by $205,174.
Additionally, increase OASIS Fitness Center personal training revenues in account 4415 -5167 by $72,000
and related contract instructor expenditures in account 4415 -8380 by $50,400 (Attachment A).
FUNDING REQUIREMENTS:
With approval of the budget amendment, sufficient funds offset by revenues will be available for increased
program participation in private surf lessons and at the OASIS Fitness Center for the balance of Fiscal Year
2015.
DISCUSSION:
The demand and growth for contract classes through the Recreation & Senior Services Department has
continued to rise this past fiscal year. Implementation of a new registration system in May of 2014,
MindBody Inc., has allowed for customer friendly walk -up registration for private surf lessons at the beach.
The new walk -up registration option has been a huge success, largely contributing to FY 2015 year to date
revenue from surfing classes exceeding forecasted revenue in the Adopted Budget by $237,467 thus far.
$460,000 -
$697,467 $237,467
$716,467 $256,467
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For the balance of FY 2015, staff estimates an additional $19,000 in revenues will be generated through
surf classes, translating into a year -end estimate of $716,467. For private surf lessons, the negotiated rate
for contract instructors is 80% of revenues generated; therefore, an additional $205,174 (80% of $256,467)
is requested for account 4330 -8380 to ensure sufficient funds for surf instructor payments.
Additionally, the popularity of the personal training sessions at the OASIS Fitness Center continues to
climb. Personal training hours have increased 31% versus prior year, peaking at 603 training sessions
taken in the month of March, 2015. FY 2015 year to date revenue from personal training represents over
92% of forecasted revenue.
$230,000
$212,215 ($17,785)
$302,000 $72,000
Staff estimates finishing FY 2015 at $302,000 in revenues from OASIS personal trainer fees, representing
a $72,000 increase from the Adopted Budget of $230,000. The negotiated payment rate to personal
trainers is 70% of revenues generated and therefore, an additional $50,400 (70% of 72,000) is requested
for account 4415 -8380 to ensure sufficient funds for personal trainer payments.
ENVIRONMENTAL REVIEW:
This action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060
(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in
physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at
which the City Council considers the item).
ATTACHMENTS:
Description
Attachment A - Budget Amendment
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ATTACHMENT A
City of Newport Beach
BUDGET AMENDMENT
2014 -15
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
Pq Increase Expenditure Appropriations
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
X from additional estimated revenues
from unappropriated fund balance
EXPLANATION:
NO. BA- 15BA•044
AMOUNT: $328,4s7.00
Increase in Budgetary Fund Balance
Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To increase revenue estimates and expenditure appropriations to account for additional revenues from private surf lessons
and Oasis Fitness personal training sessions offered by Recreation & Senior Services Department and to fund the
associated increase in contract instructor oavments.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE Amount
Fund Account Description Debit Credit
010 3605 General Fund - Fund Balance $72,893
REVENUE ESTIMATES (3601)
Fund /Division Account Description
4330 5158 Fee Based Classes - Surfing Classes $256,467.00
4415 5167 Oasis Fitness Center - Personal Trainer Fees $72,000.00
EXPENDITURE APPROPRIATIONS (3603)
Q�j / / ' Automatic System Entry.
9 7� ti — 2CI —) r—
Si
Signed: �
lEinancial Approval: Finance Direr or� Dale
Signed: 14 (® tI;
Adminis ive)Approval: City Manager Date
Signed:
City Council Approval: City Clerk
Date
11 -3
Description
Division N
Number 4
4330 F
Fee Based Classes
Account N
Number 8
8380 C
Contract Instructors $205,174.00
Division N
Number 4
4415 O
Oasis Fitness Center
Account N
Number 8
8380 C
Contract Instructors $50,400.00
Signed: �
lEinancial Approval: Finance Direr or� Dale
Signed: 14 (® tI;
Adminis ive)Approval: City Manager Date
Signed:
City Council Approval: City Clerk
Date
11 -3