1994 AGN JUN 21 I25 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For Council Meeting of June 21, 1994 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Randy Anstine, Director of Recreation & Human Semk;; SUBJECT:Potential Closure of (2) Child Care Sites DATE: June 14, 1994 BACKGROUND: City audits have revealed that the Child Care Section, of the Recreation & Human Services Department, is operating in a deficit. This deficit is approximately $200,000. The program currently operates six facilities, and is projected to sustain a deficit of $100,000 for the current fiscal year. It would appear that the reason for the deficit is overstated revenues ($84,786.00), by the prior departmental administration, as well as issuing employee discounts to City and School District personnel. Additionally, in 1991 the Child Care Program, reclassified the Teachers and Site Supervisors, positions from part-time temporary, to permanent status. This action increased the cost of employee benefits. Since this time, the program has continued to sustain losses that have impacted the general fund balance. Staff has a professional obligation, to provide the City Council with realistic projections of revenue and expenditures, as well as, being accountable for program results and fiscal responsibilities. ANALYSIS: After consulting with departmental staff, it is recommended that Council consider taking action on the following options. • Approve increasing all Child Care fees across the board by 8 percent. This increase would bring the City of Colton in line with other cities, as well as the private sector of the Colton catchment area. However, exercising this option only, would still leave the program with a $67,000.00 deficit. • Closure of the Paul J. Rogers Center and the Cooley Ranch Center. This action would leave four other centers in operation, within the Colton Joint Unified School District. This action would provide a operating savings of $170,874. These two centers do not fall under the umbrella of the State Department of Education Grant that the City presently receives. The Paul J. Rogers site has an average daily attendance of 27 children. The Cooley Ranch Site has an average daily attendance of 12 children, with 20 more children preparing to enroll. Item No. 25