Agenda Report
Fullerton City Council
MEETING DATE: MAY 3, 2022
TO: CITY COUNCIL / CITY MANAGER
SUBMITTED BY: JEFFREY W. COLLIER, ACTING CITY MANAGER
PREPARED BY: ALICE LOYA, DEPUTY DIRECTOR of PARKS AND RECREATION SUBJECT: THE PARKS AND RECREATION DEPARTMENT COST RECOVERY BLUEPRINT
SUMMARY
The Parks and Recreation Department has created an annual budget development blueprint for rebuilding the department to provide an efficient cost recovery program to restore and expand services to the community. The blueprint anticipates an increase in the department’s cost recovery, from the current 40% to 85%, within in the next four years.
RECOMMENDATION
Provide direction to develop and implement the Blueprint for Cost Recovery upon City Council approval.
FISCAL IMPACT
The Cost Recovery Blueprint will provide a reduction in General Fund support of up to 45% through increased fees and reduction in expenditures over the next four years.
DISCUSSION
The Parks and Recreation Department’s cost recovery blueprint will allow the department to rebuild funding and staffing to ensure the community receives a diversified menu of programs, services and events while covering all areas and populations of the City. The blueprint will escalate cost recovery over the next 4 years from 40% to 85%. This will repeat annually through the budget development process. The following outlines the process:
Capture all department costs: full and part time staffing and benefits; allocations from other departments (building costs, insurance, etc.).
Credit revenues generated by Parks and Recreation back to the department budget i.e., park leases and cell towers on park properties.
Create sub-programs within the adopted budget for specific programs and facilities to allow for improved cost awareness and more accurate fee structures.
Develop four program areas that will provide the revenue engines of the department. These areas could cover 100% of their direct cost and 85% of the overall department budget. These would include:
contract classes
fitness facility membership and a variety of pay as you go fitness classes toddler and pre-school classes and activities
building and park rentals.
Annually evaluate all fees to reflect appropriate adjustments to meet cost recovery percentage.
Staff will annually evaluate contracted facilities management and programs for the costs and benefits to the community and include the ongoing management of the cost recovery target percentage. These centers include:
Maple Center
Gilbert Center
Muckenthaler
Museum
Boys and Girls Club
FAST.
Evaluate use and access to pools and swim programs so Fullerton can maximize access to all segments of the community.
Introduce community special events and park activities back to the community upon increase in the department’s cost recovery, increased staffing availability, fees and sponsorship support.
Staff recommends developing the Cost Recovery Blueprint over the next couple of months for City Council review and approval. Staff further recommends beginning blueprint implementation as early as possible in the first quarter of FY 2022-23.
Cost Recovery Blueprint for Parks and Recreation
May 3, 2022 - Page 2