HomeMy WebLinkAboutFY 07-08 Budget - Foundation for the RetardedCITY OF PALM DESERT
OFFICE OF THE CITY MANAGER
STAFF REPORT
REQUEST: That the City Council approve an addition to the 2007/08 Budget in the
amount of $50,000 for the Foundation For The Retarded Of The Desert
DATE: June 28, 2007
CONTENTS: Letter dated June 7, 2007 from the Foundation For The Retarded
SUBMITTED BY: Carlos L. Ortega, City Manager
Recommendation: By Minute Motion, add $50,000 to the 2007/08 budget to assist the
Foundation For The Retarded in providing services to Palm Desert residents served by the
Foundation.
Background: The City Manager received a letter from the Foundation For The Retarded
that indicates they will end fiscal year 2006/07 with a shortfall that will exceed $300,000.
They are requesting the City to assist in funding this shortfall.
The letter indicates that Supervisor Wilson will recommend a budget request for a $50,000
subvention to the Foundation from the County. Based on the number of participants in the
Foundation For The Retarded and the percentage of participants that reside in the City of
Palm Desert, it is recommended the City make a contribution of not Tess than $37,000.
I am recommending that the City match the County's contribution with the specific caveat
that the Foundation also make the same request of other cities whose residents it serves.
Submitted By:
CARLOS L. • ' TES COUNCIL ACTION: frAUL GIBSON
City Manager APPROVED DENIED Finance Director
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An organization
of Parents
and Friends
to help all
Mentally
Retarded
FOUNDATION
FOR THE
RETARDED
OF THE DESERT
June 7, 2007
The I lonorable Carlos Ortega
City Manager, City of Palm Desert
73-510 Fred Waring Drive
Palm Desert. CA 92760
Dear City Mana rtega: (Ic r 10 5 )
73-255 Country Club Drive
Palm Desert, CA 92260-2309
Phone: (760) 346-1611
Fax: (760) 773-0933
Toll Free: (888) 771-7784
www.desertarc.org
The purpose of this letter is to request financial support for the Foundation for the Retarded of
the Desert. The Foundation provides critical services for more than 700 people with
developmental disabilities, 87 of whom are residing within the City of Palm Desert. For the
most part they are unable to avail themselves of human services provided by city government.
The Foundation serves as the primary service provider for this population and their families.
The Foundation has undergone significant organizational changes and is in the process of
reinventing itself so it can become financially stronger and more effective. The Board of
Directors has added a number of new faces that bring new energy and talent to the Board. As we
complete the search for our new Executive Director, our interim management team (who have
strong local government experience) have been effective in developing a strategic financial plan
that will help our bottom line in the future by ensuring that our programs are operated cost-
effectively and that the Foundation is operated in a business -like way. The new Board is
committed to developing a comprehensive strategic plan to serve this ever-growing population of
people with developmental disabilities. The by-lawsnare in theprocess of being completely re-
written and the Board interhis to Change the narne since it 'has outdivcd in .
Notwithstanding the above, the Foundation has endured a tough year financially which to some
degree was affected by the changes since business enterprises have experienced a reduction in
work and fundraising has been dampened. The interim management team recently
recommended a financial plan that addresses this year's problem to the extent possible and puts
the Foundation in a position to eliminate its structural budget problems and cash flow shortfall in
the future assuming the state provides reasonable reimbursements for program costs. The latest
estimates project that the FY 06/07 shortfall will exceed $300,000 (of a $10,000,000 budget) due
to the recent arrival of some old billings for State Fund for audits covering FY 01/02 through FY
03/04. Since the Foundation has virtually no cash reserves, the funding of this deficit is a
daunting problem for the Foundation and some of its services are in jeopardy since state
reimbursements are inadequate to cover 100% of program costs.
A NON PROFIT ORGANIZATION • FEDERAL. lAX I D. NO. 95 6006700
We have been active in contacting foundations, potential donors, granting agencies, state elected
officials and some elected and appointed local government officials with some success. For
example, Supervisor Wilson recently recommended a budget request for a $50,000 subvention to
the Foundation. Supervisor Wilson strongly encouraged us to ask local governments for
matching funds. While we have made CDBG grants requests to several cities, these funds result
in enhanced levels of service but they do not really help the Foundation's bottom line since their
expenses are restricted to those purposes.
We respectively request that the City of Palm Desert provide the funding for this one-time
request. We recognize that the financial situation of desert cities varies considerably and that it
may be difficult to match the funds authorized by the Board of Supervisors but we would greatly
appreciate any financial help that you can provide.
On behalf of the Board of Directors,
Sincerely yours,
Chri tine Murphy,
President
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