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01-05-1999 - Addtional Appropriation: Rose Parade Float11 TO: City Council City Manager FROM: Patricia Bommarito Acting Community Services Director City of West Covina Memorandum AGENDA ITEM NO. B-6a DATE: January 5, 1999 PRINTED ON RECYCLED PAPER SUBJECT: ADDITIONAL APPROPRIATION: ROSE PARADE FLOAT SUMMARY: Fund raising activities for the West Covina Rose Parade float have concluded, however, expenditures related to these events are yet to post. In total, approximately $142,500 from BIT and $25,000 from Fee and Charge will have been spent, however, from these events, the Rose Parade Committee will have raised over $100,000 in hard cash to offset the funds. Further, an additional $50,000 will have been received in in -kind contributions. BACKGROUND On June 22, 1998, the City Council approved an appropriation of $117,500 against the Business Improvement Tax fund for the construction of the West Covina Rose Parade float. Of this amount, $100,000 was committed to the float builder, Charisma Floats, and the remaining amount was identified for the purchase of game and parade tickets. On September 1, 1998, after the inception of the Rose Parade Committee, and after considerable planning for fund raising efforts, the City Council also approved $25,000 against the Fee and Charge Fund. These monies would facilitate the advertising of events, the purchasing of memorabilia, the scheduling of activities, and other provisions related to the, float such as volunteer and sponsor recognition. Certainly, costs incurred from the fund raising activities would be offset by revenues received. At the time of this report, a total of $83,000 had been deposited, however, pending were several revenues from the VIP reception, merchandise sales, Movies at the Edwards, game/ parade tickets, and other donations. Optimistically,, at least $100,000 would be,in the City ledger by mid -February. This amount does not include the $50,000 already received in in -kind donations for printing, advertising, catering, etc. DISCUSSION Year to date, expenditures related to the float are almost at budget, totaling $140,723. Approximately $1,700 are left in the account, therefore, for post float expenditures. Post related expenditures are expected to include payment for the VIP Reception at the Rose Bowl, the float back to West Covina, parade photography, and final payment to Charisma Floats. The balance of $1,700, however, will not adequately support these commitments. (See Chart Below.) In fact, an estimated $25,000 in additional appropriations will be necessary to meet the shortfall. BUDGET FUNDING EXPENDITURE PENDING TOTAL ANTICIPATED SHORTFALL S SOURCE YTD EXPENDITURES EXPENDITURES $ 117,500 Bus Improvement Tax $ 113,321 $ 26,000 $ 139,321 $ (21,821) $ 25,000 Fee and Charge Fund $ 27,402 $ - $ 27,402 $ (2,402) $142,500 TOTAL 1 $ 140,723 $ 26,000 $ 166,723 $ (24,223) This shortfall is seemingly `not bad' when considering that the Rose Parade Committee could not have foreseen the magnitude of the float nor the commitment and activities needed to raise an enormous amount of funds. Quite successfully, however, they have realized a great deal of revenue with limited resources, people, and time. Further, they have provided to the community a very unique experience destined to bring West Covina increased visibility and business. \\JUPITER\CSRVS DOCS\Lucy's Stuff\MORE DOCUMENTS\My Documents\agenda reports\appropriation increasenumbertwo. rose parade.doc • 0 The support of the City Council for these activities have clearly provided the foundation to `make things happen'. Although some activities related to the float have not generated much revenue due to the nature of the activity (ie, Float Back to West Covina, Volunteer and Sponsor Recognition), they have nonetheless been important activities to undertake for the benefit of the community. FISCAL IMPACT Additional appropriations for the Rose Parade float ($25,000) are requested to be allocated against the Business Improvement Tax Fund. Currently, the account (118-320- 2430-6206) has a budget of $117,500, however, with this request, the allocation to BIT for Rose Parade activities will total $142,500. The $100,000 to be generated in revenues will be utilized, of course, to offset most of this expenditure. RECOMMENDATION It is recommended that the City Council approve an additional appropriation of $25,000 against the Business Improvement Tax Fund (118-320-2430-6206) for the payment of Rose Parade float related expenditures. Patricia Bommarito Acting Community Services Director \VUPITER\CSRVS DOCS\Lucy's Stuf \MORE DOCUMENTS\My Documents\agenda reports\appropriation increasenumbertwo. rose parade.doc