TO: NEIGHBORHOOD SERVICES FROM: Jon Cicirelli
& EDUCATION COMMITEE
SUBJECT: 2023 ANNUAL COMMUNITY DATE: February 26, 2024
IMPACT REPORT
Approved Date
3/7/24
COUNCIL DISTRICT: Citywide
RECOMMENDATION
Accept the Parks, Recreation and Neighborhood Services 2023 Community Impact Report.
SUMMARY AND OUTCOME
The annual report will inform the Neighborhood Services and Education Committee of the Parks, Recreation and Neighborhood Services Department’s performances, accomplishments, and results in achieving its goals during the 2022-2023 fiscal year.
BACKGROUND
The Parks, Recreation and Neighborhood Services Department continues to advance its mission and vision in alignment with the ActivateSJ strategic plan, which the City Council approved in December 2019. The plan is a people-first, service-driven strategy with five guiding principles:
stewardship, nature, equity & access, identity, and public life.
Guided by these goals, the Department works to facilitate a place where all people can thrive.
The City’s Parks, Recreation and Neighborhood Services Department works tirelessly to provide services and programs that anchor strong and vibrant neighborhoods, parks, and community centers. With the health and well-being of citizens at the forefront, the Department implements programs that center on mental and physical health. Likewise, it has been a priority to increase accessibility to these programs for all people, regardless of age, ability, or community.
This year’s Community Impact Report showcases the Department’s strides for progress and work to provide essential places, people, services, and community. The Department remains committed to creating an environment that is welcoming, inclusive, and supportive. This report also satisfies the Department’s obligation under Council Policy 1-21, Pricing and Revenue Policy, to issue a report about how it has fared in meeting the policy’s goal to establish a financially sustainable approach to delivering services.
NSE AGENDA: 03/14/2024
ITEM: (d)3
NEIGHBORHOOD SERVICES AND EDUCATION COMMITTEE
February 26, 2024
Subject: 2023 Annual Community Impact Report
ANALYSIS
2023 Community Impact Report
The 2023 Community Impact Report highlights the Department’s involvement in improving the lives of people who live, work, and spend time in San José. With the Department’s commitment to working for people and communities of the City, the Report’s theme is “2023 Wrapped” highlighting the Department’s record of facilitating community and breaking barriers to improve San José for everyone. This report is included with this memorandum as an attachment. 2022-2023 Financial Report
As in past years, the Department continues its focus on financial stewardship with a view towards equity and accessible costs to offer high-quality programs, services, and facilities. To that end, the Department regularly assesses and adjusts program pricing each year to remain affordably priced within the context of what other service providers offer in our local market. At the same time, the Department continues to emphasize the need to ensure equitable and affordable access for our community’s most vulnerable populations through various subsidies, scholarships, and pricing discounts.
In 2022-2023, the Department began its re-emergence from the pandemic with improved revenue and cost-recovery performance, relative to the prior two fiscal years of pandemic lock-down. The Department generated $30.7 million in various revenues streams including inter-fund transfers, fee activity programs, and other created revenue opportunities (such as sponsorships and grants).
In terms of cost recovery, the Department was able to offset 23.4% of its General Fund operating expenses. This compares to the 27.9% cost recovery in 2021-2022. In that, it is important to note that while the Department saw an increase in its program-generated revenues, overall operating expenses continued to climb, outpacing our ability to generate program revenue as we continue to return to pre-pandemic levels of program participation. Despite this structural issue, the Department continues its focus on ensuring that underserved children and youth have equitable and affordable access to our City programs. In that, the Department continued to leverage General Fund and other funding sources to extend 19,093 in duplicated scholarships (3,414 unduplicated scholarship recipients) totaling $3.76 million in 2022-2023.
Prospectively, the Department anticipates continued growth in revenue in the 2023-2024, as we return to ‘normal’ vacancy levels and seek to return to pre-pandemic participation levels in our revenue-generating programs and services.
Equity, Access and Scholarships
The Department remains committed to promoting access to vulnerable populations and residents, as evidenced by the $3.59 million in scholarships budgeted in 2023-2024. Looking toward 2024- 2025, the Department will need to work closely with the Budget Office to mitigate the ending of $1.162 million of American Rescue Act funding and $500,000 in one-time funding that will have been exhausted by the end of this fiscal year.
NEIGHBORHOOD SERVICES AND EDUCATION COMMITTEE
February 26, 2024
Subject: 2023 Annual Community Impact Report
CONCLUSION
The Department continues creating financially sustainable programs to offset costs with a strong emphasis on accessibility through a growing scholarship program. The Department also continues to innovate, offering a myriad of award-winning recreational activities and programs such as Viva CalleSJ. Considering severe weather events which caused the closure of 27 parks and trails, program participation continues in new and creative ways, as do the valuable efforts of our hardworking staff.
EVALUATION AND FOLLOW-UP
The next Community Impact Report will be shared with the Neighborhood Services and Education Committee and Parks and Recreation Commission in 2025.
COORDINATION
This memorandum has been coordinated with City Manager’s Budget Office and City Attorney’s Office.
PUBLIC OUTREACH
This memorandum will be included in the Parks & Recreation Commission meeting agenda on March 6, 2024 and the Neighborhood Services and Education Committee meeting agenda on March 14, 2024. It will be posted on the Parks & Recreation Commission’s City website, along with the Neighborhood Services and Education Committee’s City website.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
NEIGHBORHOOD SERVICES AND EDUCATION COMMITTEE
February 26, 2024
Subject: 2023 Annual Community Impact Report
/s/
JON CICIRELLI
Director of Parks,
Recreation, and Neighborhood Services
For questions, please contact Daniel Lazo, Public Information Manager, at [email protected].
Attachment: 2023 Community Impact Report