HomeMy WebLinkAbout- - Budget Adjustment for OC Fairgrounds - 1/19/2010CITY COUNCIL AGENDA REPORT
MEETING DATE: JANUARY 19, 2010 ITEM NUMBER: 1
SUBJECT: APPROVAL OF BUDGET ADJUSTMENT FOR COSTS ASSOCIATED WITH PURCHASE
OF ORANGE COUNTY FAIRGROUNDS — 88 FAIR DRIVE
DATE: JANUARY 7, 2010
FROM: FINANCE DEPARTMENT, ADMINISTRATION DIVISION
PRESENTATION BY: BOBBY YOUNG, BUDGET AND RESEARCH OFFICER
FOR FURTHER INFORMATION CONTACT: BOBBY YOUNG AT (714) 754-5241
1) Approve budget adjustment #10-017 in the amount of $250,000 for costs associated with the
purchase and regulation of the Orange County Fairground site located at 88 Fair Drive.
BACKGROUND:
As the sale of the Orange County Fairground site by the State of California continues, the City has
begun incurring costs to 1.) stop the sale of the property, 2.) through a Memorandum Of
Understanding (MOU) with the County of Orange to submit a bid to purchase the Orange County
Fairground site and 3.) placement of a ballot initiative relating to the land use designation of the
Orange County Fairground site.
ANALYSIS:
Since the City has been incurring costs associated with the purchase and regulation of the OC
Fairgrounds, it is important to establish a budget for incurred and future expected costs. The City
entered into an MOU with the County for the purchase of the site, and in doing so, also
committed to sharing the expected costs necessary to complete the purchase. Such costs could
include legal, financial, and underwriting fees from consultants.
The Council is also determining the placement of a ballot initiative relating to the land use
designation of the OC Fairgrounds site. This initiative would be included on the June 8, 2010
election ballot. The Orange County Registrar of Voters estimates these costs to be approximately
$130,000.
ALTERNATIVES CONSIDERED
The Council could choose to not approve budget adjustment #10-017 and thereby not authorize any
expenditures or change the amount of the budget adjustment to increase or decrease authorization
of expenditures.
1
FISCAL REVIEW
The budget adjustment #10-017 in the amount of $250,000 is for the purpose of incurring costs
associated with the purchase and regulation of the Orange County Fairgrounds site at 88 Fair Drive.
While performing the annual audit, the City's auditors and Finance staff determined that deposits
made during the last couple of years should have actually been recorded as revenue. This
reclassification in the amount of $259,656 will occur in the 2009-10 fiscal year. Since this revenue
was not originally appropriated in FY 09-10, it may be appropriated at this time for the purpose
stated above.
LEGAL REVIEW
No legal review necessary for this item.
CONCLUSION:
Budget adjustment #10-017 in the amount of $250,000 is for the purpose of incurring costs
associated with the purchase and regulation of the Orange County Fairgrounds site at 88 Fair Drive.
Possible costs include: consultants for legal, financial, and underwriting related to the purchase of
the OC Fairgrounds site, as well as a ballot initiative relating to the land use designation of the
same site. The budget adjustment will also recognize revenue from reclassified deposits.
BOBBY YOUNG
Budget & Research Officer
Attachment 1: Budget Adjustment #10-017
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