5.5. SR 08-04-2008,/j
Elk REQUEST FOR ACTION
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To Item Number
Ci Council 5.5.
Agenda Section Meeting Date Prepared by
Administration Au ust 4, 2008 Lori Johnson, Ci Administrator
Item Description Reviewed by
Consider Boys and Girls Club Funding Request
Reviewed by
Action Requested
Consider a request from Boys and Girls Club for $10,330 in 2008.
Background/Discussion
At the July 21, 2008, Council meeting, the Council directed staff to identify any possible funding sources
for a contribution to the Boys and Girls Club in 2008. Attached is a memo from Finance Director Tim
Simon giving a brief summary of the current status of the General Fund. As he states, there is no money
available in the budget to fund this request. The logical place to fund it would be from other parks and
recreation programs. Possible cuts identified include eliminating warming houses in December and
eliminating December recreation programs. These cuts result in a savings of approximately $2,500. Cuts
of approximately $7,800 would need to come from other departments. It is very difficult to identify the
remaining $7,800 needed because all departments have already cut back in every area possible to offset
the reduced revenues and increased costs we are experiencing this .year. In addition, some budgeted
capital outlay purchases are being delayed or funded elsewhere and several positions remain unfilled.
If the Council chooses to fund the Boys and Girls Club request, the rental of gym spaces should be
elnninated as the City does not need additional gym space from the Boys and Girls Club. Instead that
funding could be used for additional teen programming. If approved, reimbursement to the Boys and
Girls Club would be made only after documentation of the teen programs is provided and acceptable to
the City.
Financial Impact
A reduction in City services or use of the General Fund balance is necessary to fund this request.
Attachments
^ Memo from Finance Director Tim Simon
Action Motion by Second by Vote
Follow Up
S:\Council\Lori\2008\Boys and Guls Club 08 04 2008.doc
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MEMORANDUM
TO: Mayor and City Council
FROM: Tim Simon, Finance Director
DATE: July 28, 2008
SUBJECT: 2008 Boys and Girls Club Funding Request
Per Council's request, I looked at the funding of the $10,330 in the 2008 budget. Currently
the 2008 budget is showing a deficit in the general fund, especially in the building permits
revenues. Departments are already monitoring their budgets to stay at or a little below the
2008 budgeted expenditures to help make up some of the differences. In addition, at this
time it looks like the council contingency and fund balance reserves may have to be used to
offset the shortfalls in some of the revenues for 2008. That is the current status, but things
could change as we move closer to year-end if revenues pickup or other departmental
expenditures make up the difference. The Council may want to consider waiting until closer
to year-end to review the current 2008 budget and revenues in making a decision.
The logical choice for a budget amendment would be in the Parks and Recreation
programming budget. The Parks and Recreation fall program guide has already been
published and any reductions to offset the Boys & Girls Club expenditure would have to
come from a reduction in winter programming and warming houses for December. In
addition, amending the Park and Recreation programming budget to offset the request
would also have to reduce our 2008 recreation revenues for the winter programming.
Another option would be to defer the request until later in the year when we do budget
amendments and if the financial condition improves use a portion of the council
contingency. Currently though, it looks like the contingency may have to be used to offset
the shortfalls in some of the current revenues.