2005 AGN MAR 15 I19 - Laserfiche WebLink

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Item #19 CITY OF COLTON AGENDA REPORT a� C WkviCP1101 TO: Honorable Mayor and City Council Members FROM: Bill Smith — Community Services Directoy/ SUBJECT: Request Approval for Increase of Budget Appropriation to Continue Subsidy for Families to Attend Colton Cares Childhood Development Center DATE: March 1, 2005 BACKGROUND: During the CDBG process for fiscal year 2004-05 funding, City Council approved a $44,000 CDBG allocation to the Colton Cares Program, for the purpose of subsidizing families in need of childcare at the Colton Cares facility, who would not otherwise be able to afford such care. This subsidy program has been operating since July, 2004, and currently there are 15 families receiving this subsidy, which ranges from $60 to $120 per week. The current CDBG allocation of $44,000 will be sufficient to sustain childcare for these families until approximately April 15, 2005. There is no current funding allocated to continue the subsidy for these families for the remainder of the fiscal year. Under the current circumstances, these families will have to find alternate means to subsidize their childcare at Colton Cares, or withdraw their children from the program, effective on or about April 15, 2005. DISC USSION/ANALYSIS: On February 22, 2005, City Council approved an $82,000 transfer from the General Fund to the Childcare Fund in order to keep Colton Cares open for the remainder of this fiscal year. Staff is currently seeking alternate methods of funding for this facility, in order keep it operational beyond fiscal year 2004-05. This family subsidy program is not part of the operations budget for the facility, and in order for the families in question to continue to receive financial assistance for childcare, an additional transfer is necessary. The alternative to approving such a transfer is simply to allow the CDBG funding to expire without any supplement. In this case, staff would immediately notify the families currently receiving the subsidy, giving them approximately one month to consider their alternatives, without this financial assistance program. It is possible, under these circumstances, that many of these families would be forced to withdraw from the Colton Cares program. This could significantly reduce enrollment at the facility, and would necessitate a staff reduction due to the decreased attendance. FINANCIAL IMPACT: The "Transfer -in" account in the Childcare Fund (206-8101-100) will increase by $16,000, and the 'Transfer -out' account in the General Fund (100-8102-206) will also increase by $16,000. The amount to be transferred from the General Fund will be drawn from the Unreserved Fund Balance account (100-2790).