CITY OF SANTA MARIA
2025 Cost of Services Study
for the City of Santa Maria
Recreation and Parks
Department
The Recreation and Parks Commission
reviewed and provided input on the report
and formally approved it on February 25,
2025.
Overview
•Conducted by Revenue & Cost Specialists
(RCS)
•Purpose: Assess actual costs of recreation
services and guide cost recovery strategies
•Approved by the Recreation and Parks
Commission on February 25, 2025
CITY OF SANTA MARIA
Study Objectives
•Identify direct and indirect costs of services
•Recommend cost recovery goals
•Provide data for fee structure decisions
CITY OF SANTA MARIA
Types of Costs Analyzed
•Direct Costs: Program salaries, supplies
•Indirect Costs: Citywide and departmental
overhead
•Maintenance & Operation Costs: Facilities,
utilities, services
CITY OF SANTA MARIA
Key Findings
•Programs operate at a subsidy, with varying
cost recovery levels
•Leisure services should target direct cost
recovery for clarity and competitiveness
•Market sensitivity and social policy are key
fee-setting considerations
CITY OF SANTA MARIA
Cost Recovery Pyramid: Guiding Program
Pricing & Resource Allocation
Overview
Programs and services are categorized using the Cost Recovery Pyramid, which helps prioritize resources and set pricing strategies.
Tiers range from:
• Exclusive Individual Benefit
• Substantial Individual Benefit
• Balanced Beneficiaries
• Community Benefit
• Community Benefit / Access
CITY OF SANTA MARIA
Exclusive Individual Benefit
75%-100% Cost Recovery
Substantial Individual Benefit
50%-75% Cost Recovery
Balanced Beneficiaries
25%-50% Cost Recovery
Community Benefit
0%-25% Cost Recovery
Community Benefit/Access
0% Cost Recovery
Exclusive Individual Benefit
(75%-100% Cost Recovery)
This level includes services that primarily
benefit individuals, such as hobbies or private
events, and limit community access. Fees are
set to recover most or all costs.
Examples: private party, pool, and ballfield
rentals.
CITY OF SANTA MARIA
CITY OF SANTA MARIA
Level 4: Substantial Individual Benefit
(50%-75% Cost Recovery)
This level mainly serve specific groups and provide
more benefit to individuals than the broader
community. Since similar services may be available
elsewhere, fees are set to recover a significant
portion of costs.
Examples: adult sports and recreation classes.
CITY OF SANTA MARIA
Level 3: Balanced Beneficiaries
(25%-50% Cost Recovery)
These programs benefit both individuals and the
community by supporting wellness, character
development, and enriching experiences. Fees
reflect the shared value provided.
Examples: youth sports, swim lessons, lap swim,
and pool activities.
CITY OF SANTA MARIA
Level 2: Community Benefit
(0%-25% Cost Recovery)
These programs offer significant community value by
promoting pride, life skills, education, and
involvement. They address community needs and
have little to no fees due to their broad public benefit.
Examples: youth and teen programs, senior services,
adaptive services, and general programs.
CITY OF SANTA MARIA
Level 1: Community Benefit/Access
(0% Cost Recovery)
This level represents core services that enhance
quality of life and reflect the City’s commitment to
community well-being. These programs are offered at
no cost to ensure broad access.
Examples: City special events and parks
programming.
CITY OF SANTA MARIA
• Adult Sports: 24.01% recovery
• Youth Sports: 9.2% recovery
• Recreation Classes: 18.0% recovery
• Teen, Youth, Senior, and Adaptive
Programs: 0%–1% recovery
• Swim Lessons: 10.75%
• Recreation/Lap Swim: 2.8%
• Private Pool Rental: 2.9%
• Facility & Ballfield Rentals: 21%
recovery
• Field Lights: 21%
Cost Recovery Performance
• Adult Sports: 40% recovery
• Youth Sports: 19% recovery
• Recreation Classes: 30% recovery
• Teen, Youth, Senior, and Adaptive
Programs: 0%–1% recovery
• Swim Lessons: 13.5%
• Recreation/Lap Swim: 5%
• Private Pool Rental: 4%
• Facility & Ballfield Rentals: 26-35%
recovery
• 100% of PG&E Cost and extended
maintenance
Current Commission Recommends
CITY OF SANTA MARIA
Recommendations
•Adopt the Cost Recovery Pyramid as the foundation for
setting prices
•Establish cost recovery targets by pyramid level—not per program
•Review fees from comparable public and private agencies to inform adjustments within each pyramid tier.
•Maintain subsidies for residents