HomeMy WebLinkAbout09- Finance CrL Y. OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: DEBI BIGGS Subject: Budget Amendment for
DIRECTOR OF ANIMAL CONTROL Animal Control Contract
Dept: FINANCE License Canvassing.
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Date: November 12, 1997
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Synopsis of Previous Council action:
7/21/97 - Council adopted the FY 1997-98 Budget.
DEC 02 1997
Recommended motion:
That the Mayor and Common Council authorize the Director of Finance, for accounting
purposes only, to amend the Fiscal Year 1997-1998 Animal Control Budget for the
contract licensing program as outlined in the attached staff report in order to show
gross revenue and expenditure instead of net revenue.
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Contact person: Debi Biggs, Director of Animal Control Phone: x - 5275
Supporting data attached: staff report Ward:
FUNDING REQUIREMENTS: Amount:_ N/A No new funding-accounting adjustment onlv
Source: (Acct. No.)
Acct. Description)
_?° 17,
Finance s l t �
Council Notes: Accounting adjustment only-revenues and expenditures will be increased equally
resultine in a net impact of zero
Agenda Item No. 1
V15 97
STAFF REPORT
BACKGROUND
Included in the FY 1997-98 Animal Control Budget is $35,100 in net revenue (gross revenue
less contractor costs) anticipated to be received for contract animal license canvassing. As part
of their Council approved budget reduction proposal in FY 1996-97, Animal Control contracted
with Civic Collections Inc. for Animal license canvassing services. Revenue generated from this
program is in addition to revenue regularly generated by the Animal Control Department.
Originally, Animal Control had planned to have the contractor deduct their commission from the
gross revenue they collected and remit a check to the City for net revenue, this is why net
revenue was budgeted. The City has had agreements in the past with vendors where this type
of arrangement concerning payment of commission existed. However, Finance has been
reviewing these type of contracts and has determined that for purposes of clearly tracking gross
revenues and expenditures, contractors should remit gross collected revenues to the City and then
the City, upon reviewing collection statements, can issue payment to the vendor. The contract
with the vendor responsible for collecting paramedic fees now works this way, as well as the
contract for armored car services. Instead of the vendors retaining their fees or commissions
from gross revenues, invoices are now submitted to the City.
RECOMMENDATION
For the record-keeping purposes discussed above, the budget for this program needs to be
adjusted to reflect separately the gross revenue and expenditure, rather than the net revenue.
The net revenue figure of $35,100 (which is the figure included in the FY 1997-98 budget)
represents an estimated gross revenue of $78,000 less the contractor's cost of $42,900 (per
Council approved contract, contractor collects 55% of all revenue collected).
Net License revenues (124-000-4xxx) will be increased by $42,900 to reflect gross revenue and
contract expenditures (124-232-5502) will also be increased by $42,900 to reflect the cost of
the contract.
The net impact of this amendment is zero as revenue and expenditures are being increased
equally to properly record expenditures and gross revenues.