PARKS AND RECREATION COST RECOVERY POLICY
Purpose
Establishing a cost recovery policy provides the City’s Parks and Recreation Department with a tool for evaluating services and establishing appropriate fees for services. Standardizing cost recovery objectives enhances the Department’s ability to accomplish broad c itywide goals and objectives. Establishing a reasonable, transparent, and consistently applied policy is intended to:
Stretch taxpayer investment in parks and recreation services to optimize value received Promote program respect and ownership
Allow prices to reflect users’ investment in themselves based on individual benefit Develop deeper commitment to the programming users help support
Costs Considered When Evaluating Cost Recovery
To evaluate cost recovery , the Department will calculate the “full cost of service,” for programming, facility use, and services provided. The full cost of service will include components for:
The direct costs of service:
- The labor associated with the performance of service from all personnel involved in the activity - The services, supplies, and/or materials required to complete the activity A reasonable share of the indirect costs of service:
- The services, supplies, and materials which support the personnel involved in the activity - The maintenance of any facilities required to support the provision of service - The indirect management, administration, and support services associated with the City functions involved in the activity
- The central services, Cit y management and administration, and governmental oversight associated with the functions involved in the activity
Targeted Cost Recovery in Fees
Once the full cost of service is established for each activity, the City will apply a consistent set of guidelines for determining the amount of cost to be recovered in the final fee amount. A cost recovery percentage will be applied to the full cost of service to calculate the fee. Figure 1 describes the general criteria for assigning Departmental programming, facility use, and services to cost recovery tiers. The cost recovery threshold assigned to each fee-related service and program area will be identified in the periodic analysis and documentation supporting the ongoing and seasonally managed calculation of the City’s Parks and Recreation fees.
FIGURE 1 | COST RECOVERY GUIDELINES – PARKS AND RECREATION SERVICES
BENEFIT-BASED
RECOVERY TIER DESCRIPTION FEE BASED PROGRAM AREA
0% COST RECOVERY
Entirely Community
Benefit
Programs, facilities, and services that benefit the
community as a whole. The community generally
expects the City to offer these services and
supports paying for these through taxes.
• General, non-exclusive park,
playground, open space, trails,
restrooms, and facility
visitation and use
1-20% COST
RECOVERY
Mostly Community
Benefit
Programs, facilities, and services that provide
benefit to the individual user, but have more
fundamental goal of:
• Seeking to engage community with high
participation levels desirable
• Community problem solving (e.g., services
for vulnerable or underserved populations)
• Special events
• Senior Center Drop in, Senor
Nutrition, Senior Health &
Wellness
• Youth After school/daily drop-
in programs, Leader in Training
(teen leadership) Program
21-40% COST
RECOVERY
Considerable
Community Benefit
Programs, facilities, and services which promote
individual physical and mental well-being, and
provide recreation skill development. They may
have a community benefit but to a smaller group
of the community. Generally, costs of service are
offset by both a tax subsidy to account for
community benefit and participant fees to
account for individual benefit.
• Early Learners (preschool aged)
• Therapeutic Recreation
• Senior Fitness classes
41-70% COST
RECOVERY
Balanced Individual
and Community
Benefit
Programs, facilities, and services which promote
individual physical and mental well-being, and
provide recreation skill development. Program,
facility, and service use that benefits individuals
primarily, but the community receives some
benefit.
• Services which are specialized and/or similar
to private sector
• Comparable “market rates” for similar
services affect ability to recover a greater
percentage of costs
• Aquatics – e.g. Lessons &,
Recreational Swim, Lap swim
• Recreational Classes (not
vendor provided), RJJT
• Memberships, drop in activities
• Facility, field, and meeting
room rentals for resident non-
profit & community groups
• Community Garden
71-90% COST
RECOVERY
Considerable
Individual Benefit
Benefits individuals significantly more than the
community; Private sector or public agencies
offer similar services; Demand for service, facility
or program exceeds capacity
• Competition, meets and
tournaments
91-100% COST
RECOVERY
Exclusively
Individual Benefit
Benefit individuals; Commercial nature of
services; Enterprise funds expected to operate
without General Fund support
• Facility and field rentals for
non-resident groups (e.g.
group picnic areas) and
organizations
Additionally, Parks and Recreation cost recovery will be influenced by two additional considerations:
Where feasible and compatible with the service offered, the Department will establish a higher fee for non-resident participants than resident participants. Where feasible and compatible with the service offered, the Department will provide a discounted fee for eligible low-income participants identified through its established procedures.
Staff will seek to enhance and refine this policy over time.
*100%+ indicates minor exceptions where premiums above cost may be justified, such as market-based rents.
Parks and Recreation Fee Management
Most fees for Parks and Recreation services and programs will fluctuate seasonally as the Department manages offerings and provisions of service dynamically in line with capabilities and market conditions at the time schedules are developed. As such, establishing static fees within the Municipal Fee Schedule similar to most other City services is burdensome procedurally. The Cost Recovery Policy is intended to establish general targets for the Department wi thin which it can set most fees on that fluctuating basis within its periodic service catalogs.