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Home My WebLink About06 - Surfing-Sailing-Tennis Reserve AccountsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 March 24, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Recreation & Senior Services Department Laura Detweiler, Director 949- 644 -3157, Ietweiler @city.newport- beach.ca.us SUBJECT: Budget Amendment — Surfing 1 Sailing f Tennis Reserve Accounts ISSUE: Should the City Council approve a Budget Amendment in the amount of $49,310 to transfer funds from the surfing, sailing, and tennis reserve accounts into the General Fund per City Council Policy B-2 — Recreational Instructional Activities? RECOMMENDATION: Approve a budget amendment in the amount of $49,310 and transfer funds from the surfing, sailing and tennis reserve accounts into the General Fund. DISCUSSION: Each Fiscal Year, the Recreation & Senior Services Department prepares a City Council Report for the transfer of funds from reserve accounts into the General Fund per City Council Policy B -2 (Attachment A). City Council Policy B -2 states that 20% of gross revenue derived from surfing, sailing and tennis classes 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 listed below, (Attachment B provides a detailed breakdown): Funds from the Surfing Reserve account in the amount of $17,000 will be used to purchase an additional computer and software licenses to handle the increased registration for aquatic camps and summer programs. Funds will also be used to purchase aquatic equipment for summer programs. The current balance in this reserve account is $170,159. Budget Amendment — Surfing / Sailing I Tennis Reserve Accounts March 24, 2009 Page 2 • Funds from the Tennis Reserve account in the amount of $29,560 will be used for tennis, handball and basketball court resurfacing. The current balance in this reserve account is $45,442. Funds from the Sailing Reserve account in the amount of $2,750 will be used for repair to 12 Sabots and 4 Lidos for the City sailing program. The current balance in this reserve account is $61,425. ENVIRONMENTAL REVIEW: The City Council's approval of this Agenda Item does not require environmental review. PUBLIC NOTICE: 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). FUNDING AVAILABILITY: - There are sufficient funds available in the following accounts to transfer funds: Amount From To 9,000 010 -3740 — Surfing Reserve Acct 4330 -8080 3,500 010 -3740 — Surfing Reserve Acct 4380 -8200 4,500 010 -3740 — Surfing Reserve Acct 4330 -8200 $17,000 $29,560 010 -3742 - Tennis Reserve Acct 4330 -8080 $2,750 010 -3741 —Sailing Reserve Acct 4330 -8080 31 TOTAL Prepared by: Submitted by: Matt Lohr aura Detw le , Director Recreation Manager Recreation & enior Services Department Attachments: A: City Council Policy B -2 B. Breakdown of Funds C. Budget Amendment Attachment A B -2 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 25,1968 Amended - March 1970 Amended - April 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 1 -2 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 BREAKDOWN OF FUNDS Surfing Reserves Account 010 -3740 RecWare Licenses 4,000 (Registration software) Registration Computers & 3,500 Equipment Tax & shipping estimates 1.500 $9,000 Misc. Equip. & Supplies 3,000 (Summer Camp & Aquatic Programs) Portable Shade Structures for 4,000 Aquatic Camps & Classes Taxes & Shipping 11000 Sailing Reserves Account 010 -3741 Supplies /Repairs for boats Tax & Shipping 2,500 250 $2,750 Tennis Reserves Account 010 -3742 Park/Type of Court Resurfacing Grant Howald - Tennis 5,950 West Newport - Tennis 11,550 West Newport — Handball 2,780 West Newport — Basketball 1,790 Cliff Drive - Basketball 1,790 Carroll Beek - Basketball 3,200 Contingency 2,500 $29,560 Total Budget Amendment Requested Attachment B 17 000 2 750 29 560 $49,310 City of Newport Beach NO. BA- 09BA -043 BUDGET AMENDMENT 2008 -09 AMOUNT: $as,3lo.00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase in Budgetary Fund Balance Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance X 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 from Surfing, Sailing and Tennis Reserve accounts to the Recreation departments operating budget to enhance the City's recreation programs. ACCOUNTING ENTRY: BUDGETARYFUND BALANCE Amount Fund Account Description Debit Credit 010 3740 General Fund - Surfing Reserve $17,000.00 " 010 3741 General Fund - Sailing Balance $2,750.00 010 3742 General Fund - Fund Balance $29,560.00 ' REVENUE ESTIMATES (3601) Number 8200 Special Department Supplies Fund /Division Account Description EXPENDITURE APPROPRIATIONS (3603) Signed: Signed: Approval: Administrpdve Services Director City Manager City Council Approval: City Clerk $41,310.00 $4,500.00 $3,500.00 3 /6 -o9 Date �oG to Date Description Division Number 4330 Recreation - Fee Based Classes Account Number 8080 Services - Professional & Technical Account Number 8200 Special Department Supplies Division Number 4380 Recreation - Youth After SchooUCamps Account Number 8200 Special Department Supplies Signed: Signed: Approval: Administrpdve Services Director City Manager City Council Approval: City Clerk $41,310.00 $4,500.00 $3,500.00 3 /6 -o9 Date �oG to Date