Agenda Item
City Council
Item #: 3.5. 12/12/2023 File #: 23-0793
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director
1. SUBJECT
Appropriation of $59,134.76 in revenue from Recreation class programs.
2. SUMMARY
Collected revenues are recommended to be appropriated for Fiscal Year 2023-2024 payments for contract class instructors for the City’s Recreation class programs.
3. RECOMMENDED ACTION
1. Accept into the City’s Fiscal Year 2023-2024 revenue budget $59,134.76 in recreation class revenue into account 100.7001.46540.00000, Recreation Classes.
2. Authorize the appropriation of $41,394.33 in the Fiscal Year 2023-2024 expenditure account number 100.7011.51670.00000, Other Professional and Consulting Services.
4. FISCAL IMPACT
The revenue received funds the requested appropriation.
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
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.
Historically, the City has budgeted both revenue and expenditures for the Recreation classes through the annual budget process. With the Community Services Department’sexpansion of services and other programming, the City Council approved modifications to the contract class budget to direct limited resources to other programs without significantly impacting the General Fund (100). The City of Orange Printed on 12/7/2023Page 1 of 2
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Item #: 3.5. 12/12/2023 File #: 23-0793
limited resources to other programs without significantly impacting the General Fund (100). The Fiscal Year 2023-2024 (FY24) expenditure budget was reduced, and the revenue portion was not budgeted. Therefore, beginning FY24, 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 method 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 fall 2023 contract class quarter, which generally encompasses September, October, November, and part of December, concludes on December 16, 2023. The fall class revenue received in FY24 is $59,134.76. At this time, staff is requesting that this revenue be accepted into the City’s FY24 budget. Additionally, staff is requesting $41,394.33 of the revenue be appropriated into the corresponding expenditure account to compensate the instructors for the quarter.
7. ATTACHMENTS
· None
City of Orange Printed on 12/7/2023Page 2 of 2
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