02-07-2012 - General Fund Subsidy of 4th of July Celebration•
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City of West Covina
Memorandum
FM
FROM:
Andrew G. Pasmant, City Manager
and City Council
Chris Freeland, Deputy City Manager
AGENDA
ITEM NO. 1 Sd
DATE February 7, 2012
SUBJECT: GENERAL FUND SUBSIDY OF 4`h OF JULY CELEBRATION
RECOMMENDATION:
It is recommended that the City Council cancel the 2012 City of West Covina 4`h of July
Celebration.
On Thursday, December 29, 2011, the California Supreme Court upheld Governor Jerry Brown's
elimination of redevelopment agencies. The elimination of West Covina's Community
Development. Commission (CDC) will have an immediate impact on the City's budget. The
projected budget deficit of the City's General Fund budget for Fiscal Year 2012-2013 could increase
from $3.8 million to $8.6 million. In response to the recent court decision, the City is being forced
to reduce and eliminate programs funded by the General Fund in order to reduce the projected
budget deficit. Layoffs of City personnel may also be a future consideration.
For several years, the City of West Covina has partnered with the Muscular Dystrophy Association
(MDA) for the City's Annual 41h of July Celebration at Edgewood School. The MDA utilizes this
event as a fundraiser that raises thousands of dollars for the charity from food, crafts, vendor booths,
as well as a large carnival. The City sponsors the fireworks and entertainment show, provides
police personnel for security, restrooms, miscellaneous rentals, school district clean-up fees, etc.
The total cost to the City is approximately $65,000 ($46,700 in General Fund and $18,300 in Police
Grant funding). The City offsets approximately $6,000 of these costs from the $1.00 admission fee
charged to spectators wishing to watch the entertainment show from the school grounds.
City staff is recommending the cancellation of the 2012 41h of July Celebration, which will save the
City approximately $65,000 ($46,700 in General Fund and $18,300 in Police Grant funding).
ALTERNATIVES:
1) Authorize the 2012 4`h of July Celebration at a cost of $65,000 ($46,700 in General Fund and
$18,300 in Police Grant funding).
2) Provide alternate direction.
FISCAL IMPACT:
Annually the City of West Covina expends approximately $65,000 ($46,700 in General Fund and
$18,300 in Police Grant funding) for the 41h of July Celebration, with the potential to offset the cost
by $6,000 in admission fees for the celebration.
At this time, the City of West Covina will still be holding the 2012 EggCelebration and 2012
Memorial Day community events, which are both fully funded by a donation from the Castucci
Foundation.
Prepared by:
Chris Freeland
Deputy City Manager