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.
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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
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