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Item 20 - Appropriation of Additional Funds for Employee Computer Purchase Program - AGENDA REPORT CITY OF POW A Y This report is included on the Consent Calendar. There will ~ no separ~e discussion of the report prior to approval by the City Council unless members of the Council, staff or public ~eques.t It to be removed fr?":l ~e ~onsent Calendar and discussed separately. If you wish to have this report pulled for dlscus~lon, pl.ease fill out a slip indIcating the report number and give it to the City Clerk prior to the beginning of the City CounCIl meeting. TO: Honorable Mayor and Member~e City Council FROM: James L. Bowersox, City Man INITIATED BY: Peggy A. Stewart, Director of Administrative servic7~}) Peter Moote, Senior Management Analyst OATE: March 23,1993 SUBJECT: Appropriation of Additional Funds for Employee Computer Purchase ProQram ABSTRACT It is recommended that the City Council authorize the appropriation of an additional $30,000 for the Employee Computer Purchase Program. BACKGROUND On September 15, 1992, the City Council approved the establishment of an Employee Computer Purchase Program. Funds in the amount $50,000 are appropriated in the form of a loan from the Capital Replacement Fund for the program, which enables City employees to borrow up to $2,500 for the purchase of home computers and business software. All funds used for the program are recovered through repayment of the loans. FINDINGS The Employee Computer Purchase program has been highly successful in its first 5 months of operation. The program goal of encouraging City employees to purchase home PCs in order to increase their proficiency in the use of PCs and PC business software is being achieved. To date, 28 employees have participated in the program, and the original $50,000 appropriated for the program has been fully encumbered. Additional funding would permit the issuance of additional loans which would otherwise be delayed pending the return of funds through loan repayments. It is anticipated that no additional appropriations will be necessary based on the flow of loan payments now becoming available for reissue. ACTION: 1 of 2 Agenda Report March 23, 1993 Page 2 FISCAL IMPACT An additional appropriation of $30,000 from the Capital Replacement Fund is proposed. All funds appropriated for the program will be recovered through the repayment of employee loans which include interest payments sufficient to offset interest income earned through the City's investment portfolio. PUBLIC NOTIFICATION AND CORRESPONDENCE None RECOMMENDATION It is recommended that the City Council authorize the appropriation of $30,000 from the Capital Replacement Fund for the Employee Computer Loan Program. PM\PCADMIN\!='rLOAN2 2 of 2 MAR ;l. 3 1993 ITEM 20.1