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(1) Discuss and Provide Input on Feasibility of Veterans Memorial Building Becoming an Enterprise Fund; (2) (If Desired) Discussion of the Creation of a Subcommittee; and (3) (If Desired) Appointment of Members to Such Subcommittee
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Meeting Date: June 14, 2017
Contact Person/Dept: Jeff Muir/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: []
Public Notification: (E-Mail) Meetings and Agendas - Finance Advisory Committee (06/08/2017)
Department Approval: Jeff Muir, Chief Financial Officer
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RECOMMENDATION
Staff recommends that the Finance Advisory Committee (FAC) (1) discuss and provide input on feasibility of Veterans Memorial Building becoming an Enterprise Fund; (2) (if desired) discussion of the creation of a subcommittee; and (3) (if desired) appointment of members to such subcommittee.
BACKGROUND/DISCUSSION
During the Parks, Recreation & Community Services (PRCS) Budget Session Hearing at the City Council Meeting on June 5, 2017, discussion ensued between the Council and PRCS Director, Daniel Hernandez, regarding revenue and expenses for Veterans Memorial Building (VMB). As the City considers options in light of the General Fund Financial Forecast, the Council expressed concerns regarding how to best demonstrate user fees’ coverage of VMB operations. Establishing VMB as an Enterprise Fund was offered as one recommendation, which requires additional research to determine if a viable solution with consideration of the above objective.
Enterprise Funds refer to a mechanism to separately finance and account for municipal services that are entirely or predominately self-supported by user charges.
The Council has transmitted this item to the FAC for formal review as an addition to its Work Plan.
ATTACHMENTS
None
MOTION
That the FAC:
1. Discuss Feasibility of Veterans Memorial Building Becoming an Enterprise Fund; and
2. (If Desired) Discussion of the Creation of a Subcommittee; and
3. (If Desired) Appointment of Members to Such Subcommittee.