01-19-1999 - Addtional Appropriation: Rose Parade Float�. City of West Covina
Memorandum
AGENDA
TO: City Council and City Manager ITEM NO. F-1
DATE January 19, 1999
FROM: Patricia Bommarito, Acting Community Service ® PRINTED ON RECYCLED PAPER
SUBJECT: ADDITIONAL APPROPRIATION: ROSE PARADE FLOAT
SUMMARY: Staff brought to City Council on January 5, 1999 a request to appropriate and
additional $25,000 against the Business Improvement Tax (BIT) Fund for the
payment on Rose Parade float related expenditures. Because the Chamber had
not been involved in the decision to use this fund, Council directed staff to
research other sources of revenue and to bring it back to Council on January 19,
1999 for direction.
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 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.
During the five -month period of fund raising, the Rose Float Committee will have generated
,revenue in excess of $100,000. All of this revenue will be used to replenish the BIT fund. This
figure does not include the $70,000 of in -kind donations that were so essential in this endeavor.
With a budget of $142,5000 and anticipated expenditures of $166,723, staff anticipated a
shortfall of $24,223 and went to Council on January 5, 1998, requesting additional
appropriations of $25,000 from, the BIT for the payment of Rose Parade float related .
expenditures.
Because the Chamber of Commerce had not been a part of the decision to use BIT for this
appropriation, Council directed staff to pursue other funding sources. Staff was also to contact
the Chamber requesting direction.
DISCUSSION
Staff contacted the Chamber of Commerce asking for direction regarding the use of BIT as a
source of funds for the payment of float related expenditures.
At a meeting of the Board of Directs of the Chamber of Commerce on January 12, 1999, they
voted to approve and additional $25,000 from excess BIT funds be allocated to cover these
expenses (see attached).
Per Council direction, staff also identified an alternative funding source, utilizing monies from
the General Fund Reserves.
FISCAL IMPACT
Additional appropriations for the Rose Parade float ($25,000) are requested to be allocated
against:
a) The.Business Improvement Tax Fund. Currently, the account (118-320-2430-6206)
has budget of $117,500, however, with this request, the allocation to BIT for Rose
Parade activities will total $142,500,
or
b) the General Fund Reserves.
` I
RECOMMENDATION
It is. recommended that the City.Council approve an additional appropriation of $25,000 from
either 1) •the Business Improvement Tax Fund or 2) General Fund Reserves for the payment of
the 1999 Rose Parade .float related expenditures.
Patricia Bommarito
Acting Community Services Director
PB:sr
Z:AgendaReport 1-19:Additional Appropriation Rose Float
The Chamber of Commerce
of West Covina
811 South SunsetAve
West Covina, CA 91790
January 13,1999
West Covina City Council
City of West Covina
P.O. Box 1440
West Covina, Ca. 91793
TEL (626) 3W-8496
FAX (626) 960-0511
E-Mail wcovina Vixnetcom.com
Internet address http: (lwww. wcowna. org
Re: Use of Additional Excess BIT Funds for the Rose Float
Dear Members of the West Covina City Council:
The Board of Directors of the Chamber of Commerce of West Covina recently
met to discuss the use \ of additional BIT funds for the 1999 Rose Float. It is our
understanding that an additional amount of $25,000 is needed, to cover the
complete costs for the float. The Board of Directors has been and continues to be
supportive of the City's efforts to participate in the Rose Float parade, and
therefore approves that an additional $25,000 from excess BIT funds be allocated
to cover these expenses.
A special committee comprised of members from our Board of Directors will also
be meeting next Monday, January 1811, to discuss the possible use of excess BIT
funds for the. year 2000 float. We are looking forward to working with you on
this effort in the months to come.
Please feel free to contact me if you should have any questions.
Sincerely yours,
Dr. H. Lee Laue, D.C.
President
LL/rdh
WEST COVINA YOUR BUSINESS
Proudly Serving West Covina for Over 50 Years
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