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HomeMy WebLinkAbout1997-05-21 City CouncilBUDGET 1997-98 City of Palo C ty Manager’s Report TO:HONORABLE CITY COUNCIL FROM: ATTENTION: CITY MANAGER FINANCE COMMITTEE DEPARTMENT: Community Services DATE: SUBJECT: May 21, 1997 CMR: 226:97 Review of Community Services Fee Reduction Program RECOMMENDATION Staff recommends continuation of the Community Services Department Fee Reduction Program in the 1997/98 Fiscal Year. Staff also recommends that the Fee Reduction Income Scale be adjusted with each two-year budget, effective July 1, 1998. POLICY IMPLICATIONS This report does not recommend any changes to existing City policies. EXECUTIVE SUMMARY Background The former Disability Awareness Task Force (DATF) and the Human Relations Commission (HRC) asked staff to develop a fee reduction program for low-income and disabled residents, which would allow more citizens to participate in Community Services- sponsored recreational classes, day camps, theater and cultural classes. The request also asked that fees be waived for attendants required to accompany an individual with a disability to any of these activities. At the Finance Committee of May 30, 1996, the Committee recommended that Council approve the Community Services Fee Reduction Program on a one-year pilot basis. Council approved the program on June 24, 1996, and asked staff to return with a review of the program as part of the FY 97-98 budget process. Implementation The Office of Human Services (OHS) was asked to develop an eligibility scale and administer the pilot program. OHS utilized the Federal Community Development Block Grant (CDBG) income guidelines for the greater San Jose region, using the low-income guidelines for the low-income population and the median income figures for the disabled participants. These figures are reviewed annually and provide the best barometer to keep CMR:226:97 Page 1 of 4 up with the area’s changing economic indices. The eligibility scale for the program is as follows: INCOME GUIDELINES: Low Income Guidelines Size of Household 1 2 3 4 5 6 Each add’l person add Monthly $1,341 $1,341 $1,575 $1,891 $2,208 $2,525 $316 Yearly $16,100 $16,100 $18,900 $22,700 $26,500 $30,300 $3,800 Disability Income Guidelines Size of Household 100% Median Income 1 $47,200 2 $53,900 3 $60,700 4 $67,400 5 $72,800 6 $78,200 7 $83,600 8 $89,000 CMR:226:97 Page 2 of 4 The following programs are eligible for the 50 percent Fee Reduction Policy: Arts & Culture classes that charge $5.00/hr or more Recreation programs that charge $5.00/hr or more (Camps, Classes, Swim Lessons, Middle School Athletics, Therapeutic Classes and Lap Swim Coupon Book) Staff’s outreach program included two newspaper ads, development of 1,000 brochures distributed at all library branches and community centers, advertisements in the Enjoy Catalog, and an informational insert in the City’s utility bill. Participation Twenty-two residents applied for the Fee Reduction Program from September 1, 1996 through March 31, 1997. Of those, twenty-one have been certified and one was found ineligible. Twenty were certified based on meeting the low-income eligibility guidelines and one was certified based on the disability income guidelines. In the Recreation, Open Space and Sciences Division, assistance has been provided for a total of fifty-two classes and/or camps for thirteen families for an average benefit of approximately $35. Three to five families use the program repeatedly, while most of the remaining have signed up for only one or two programs. In staff’s review of registration histories, most of the extensive users of the Fee Reduction Program participated in City programs before the policy was implemented. Staff expects to see the total figures rise somewhat over the next few weeks because several families, who have signed up for summer camps in the past, have yet to register for this upcoming summer. Unless they have moved out of the. area, it is highly conceivable that they would apply for the reduction. FISCAL IMPACT Staffprojected (CMR 280:96), that a revenue loss of approximately $5,000 could result from the Program. However, as of April 1, 1997, the Recreation, Open Space and Sciences Division has experienced a revenue loss of $1,857, and the Arts and Culture Division reports a $47 loss of revenue. The breakdown is as follows: ® Children’s Summer Camps and Aquatic Programs: $908 Adult Classes, Swim Ticket Books, etc.: $531 Children’s Science and Art Classes, Middle School Athletics: $416 Projected costs to implement the program totaled $1,104 in outreach, equipment, and supplies. By sharing the Fire Department’s camera and laminator machine, staff was able to reduce start-up costs by $3,000. Staff believes that a request for a budget supplementation is not necessary to continue administration of this program. CMR:226:97 Page 3 of 4 Staff recommends that the Community Services Fee Reduction Income Scale for eligibility (listed on page two of this report) be adjusted every two years, effective July 1, 1998. ENVIRONMENTAL IMPACT This program is not a project as defined by the California Environmental Quality Act and is not subject to CEQA requirements. PREPARED BY: David F. Martin, Administrator, Office of Human Services DEPARTMENT HEAD REVIEW.~~ PAUL THILTGEN Director of Community Services CITY MANAGER APPROVAL: Manager Related CMRs: 235:95; 280:96 cc: Human Relations Commission CMR:226:97 Page 4 of 4