2005 AGN JUN 21 I01 - Laserfiche WebLink

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ITEM #1 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF June 21, 2005 TO: Honorable Mayor and City Council Members FROM: Bill Smith, Community Services Director,�y' SUBJECT: Request Approval of Resolution Amending the Fee Schedule for Childcare Services in the Childcare Division of the Community Services Department DATE: June 7, 2005 BACKGROUND: Current Childcare Division statistics reflect a non -subsidized family enrollment of approximately twenty-five percent (25%). These families pay for childcare services, and this revenue assists in offsetting staffing and operations costs associated with the Childcare Program. The current fee schedule has been in effect, without any rate increases, since 1999. DISC USSION/ANALYSIS: The Childcare Program is currently charging full -pay clients below the market rate. As recipients of funding from the State of California Department of Education, the Childcare Division is required to charge the current market rate for all full -pay childcare services. Failure to responsibly adjust rates, as needed, can result in sanctions from the State, including the loss of funding that assists families in need of low-cost childcare services. Since the fee schedule has not changed in more than five years, the pressure on the Childcare Program to meet its expenses has increased with rising costs due to staffing and operations. Based on recent surveys, conducted by staff, of comparable childcare rates in the immediate area, staff is recommending an adjusted fee schedule for childcare services in the Childcare Division. This schedule will make our rates comparable with those of similar services offered by private providers in the area, while keeping them affordable for our full -pay client base. Attachment A lists the current fee schedule for childcare services in the Childcare Division. Attachment B lists the proposed adjusted fee schedule. FINANCIAL IMPACT: The new fee schedule will positively impact revenue in the Childcare Division. It is difficult to predict the amount of increased revenue for fiscal year 2005-06, but a conservative estimate puts this increase at $10,000. This will positively impact the Division's ability to ensure that revenue meets expenses for the entire Childcare Program. ENVIRONMENTAL IMPACT: None CONFLICT OF INTEREST: None