Title
a. Receive and accept the FY 2014-15 Financial Status Report through March 2015 for Parks Enterprise Fund 452; and
b. Approve and authorize the Auditor-Controller to release $300,000 from the Laguna Seca Track Maintenance and Repairs Assignment - Fund 001 Balance Sheet Account 3129 and increase $300,000 in appropriations in General Fund CAO Other Financing Uses - Fund 001 Department 1050 Appropriation CAO017 Unit 8038. Transfer $300,000 from General Fund CAO Other Financing Uses - Fund 001 Department 1050 Appropriation CAO017 Unit 8038 Object 7614 to Parks Fund 452 Department 7500 Appropriation PAR004 Unit 8391 Object 5940 (4/5th vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive and accept the FY 2014-15 Financial Status Report through March 2015 for Parks Enterprise Fund 452; and
b. Approve and authorize the Auditor-Controller to release $300,000 from the Laguna Seca Track Maintenance and Repairs Assignment - Fund 001 Balance Sheet Account 3129 and increase $300,000 in appropriations in General Fund CAO Other Financing Uses - Fund 001 Department 1050 Appropriation CAO017 Unit 8038. Transfer $300,000 from General Fund CAO Other Financing Uses - Fund 001 Department 1050 Appropriation CAO017 Unit 8038 Object 7614 to Parks Fund 452 Department 7500 Appropriation PAR004 Unit 8391 Object 5940 (4/5th vote required).
SUMMARY/DISCUSSION:
Parks Enterprise Fund 452 continues to struggle with the impact low lake levels has on the profitability of both lakes. After receiving Operating Transfers In of $1,658,144, the fund is projected to end FY 2014-15 with a $1,683,583 loss versus a budgeted loss of $60,000, a deterioration of $1,623,584. Although revenues for FY 2014-15 are projected to fall short of budget by only $161,852, expenditures exceed budget by $1,461,732.
Two major factors contributed to the $1,461,732 increase in expenditures. The continued employment of 14 staff positions for nine months that were identified for layoffs during last year's budget process totals $1,019,868. The majority of the remaining increase is a result of keeping Lake San Antonio and the resort open this fiscal year.
The release of $300,000 from the Laguna Seca Track Maintenance and Repairs Assignment - Fund 001 Balance Sheet Account 3129 has not occurred because the wording in Board Order 14-946 was unclear as to the intent and steps to accomplish the transfer. The Parks Department intended to release and transfer $300,000 from Laguna Seca Track Maintenance and Repairs Assignment -Fund 001 Balance Sheet Account 3129, and not utilize General Fund contribution in the Parks General Fund Laguna Seca Track Operations, in order for the General Fund to subsidize Parks Enterprise Fund 452.
OTHER AGENCY INVOLVEMENT:
This report was received by the Board of Supervisor's Budget Committee on April 29, 2015.
FINANCING:
The release of $300,000 from the Laguna Seca Track Maintenance and Repairs Assignment - Fund 001 Balance Sheet Account 3129 will reduce the balance in the account to $3,063,794.
Prepared by: Nina DeMello, Parks Finance Manager
Approved by: Mark Mariscal, Director of Parks and Recreation
Attachments on file with Clerk of the Board:
Parks Fund 452 Q3 FYTD 2014-15 Financial Status Report