2005 AGN MAY 03 I14 - Laserfiche WebLink

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Item #14 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF May 3, 2005 TO: Honorable Mayor and City Council Members FROM: Bill Smith — Community Services Director SUBJECT: Consideration of Disposition of Colton Cares Program DATE: April 27, 2005 BACKGROUND: The Colton Cares Childcare Program has continued to struggle with budget issues since Proposition 10 State funding, upon which the program was founded, was discontinued at the end of fiscal year 2002-03. At the end of that fiscal year, the decision was made to make Colton Cares a full -pay, self-supporting facility. Unfortunately, for the past two fiscal years, the facility has been unable to support itself, and has required large subsidy transfers from the City's General Fund to remain open. In recent months, staff has worked diligently to find a solution to this problem. Expenses have been cut to the bare minimum, while maintaining safety and State licensing requirements. Staff has researched the possibility of enhancing enrollment and/or increasing fees to close the budget gap, however research has indicated that this method will have little if any impact to the budget shortfall. Supplemental revenue has also been sought in the form of grants, as well as the recovery of Proposition 10 money. To date, none of these methods has worked, and there is no indication that any financial assistance is forthcoming. There are approximately two months left in the current fiscal year, through which City Council has funded this program with another General Fund subsidy. Staff has kept families at Colton Cares well-informed of the budget situation in the form of several letters in recent months. During this time, families have been given resource information to seek alternate childcare options for their needs. There are currently less than 20 families registered in the Colton Cares program. Given the relatively short period of time remaining until budgeted funding runs out at Colton Cares, it is the opinion of staff that a decision is in order as to the future of this program. DISCUSSION/ANALYSIS: Given that there does not appear to be any outside funding assistance forthcoming, staff envisions only two options for the future of this program, heading into the next fiscal year. Option one is to continue the Colton Cares program into the next fiscal year. This decision would necessitate the approval of a General Fund transfer to the Childcare Fund, in an amount roughly equal to $150,000. Option two is to close the Colton Cares program, effective at the conclusion of the current fiscal year. Such a decision at this time would provide approximately two months notice for the few remaining families at Colton Cares to secure alternative childcare options. As previously mentioned, these families have been provided with these resources, and staff would further assist these families in any way feasible to minimize their inconvenience.