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Report regarding a resolution approving Budget Amendment 26.003 appropriating $298,600 additional funding for the Westborough Pre-School Expansion Project. (Van Araujo, Finance Director)
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RECOMMENDATION
Staff recommends that City Council adopt a resolution approving Budget Amendment 26.003 appropriating up to $298,600 toward additional funding to the Westborough Pre-School Expansion Project.
BACKGROUND/DISCUSSION
The city is considering an expansion of the current Pre-School program given at Westborough to its own building located near the park. The expansion would add 40 students to the given count of 60 students, for a total of 100 students. Currently, resident students pay $734 a month while non-resident students pay $821 a month. For the whole year there will be an increase in revenue from 40 resident students by $293,600 or from 40 non-resident students an increase of $328,400. This total is accounting for the entire year.
FISCAL IMPACT
As of the current planning estimates, the total anticipated one-time cost for the building is currently approved at $9M and was discussed in detail in capital funding staff report 25-551. It has been shared that those costs could increase to as much as $12 million. If additional budget for capital costs are required, that amount will be requested in the future.
Along with the one-time building costs, the additional cost of finger-printing the staff would be $375 and the additional cost for permits will add up to $11,325. These permits will be an on-going cost. The cost of supplies and other enrichment activities is $2,340, this will be an on-going cost. Another on-going cost would be staff total cost will be the estimate of $578,000. The city general fund supplements each student the difference between revenue and budgeted expenditures.
RELATIONSHIP TO STRATEGIC PLAN
This action will allow the continuation of support to South City Youth that aligns with the Council’s Strategic Plan in the area of Quality Life by allowing for much-needed financial support to the expansion of childcare service for the community.
CONCLUSION
Staff recommends that the City Council approves the need for financial assistance to the expansion of Westborough Pre-School through the budget amendment, in order to continue the support of youth development.