Item 4G
Item 4G:
Approve the revised Recreation Activities Cost Recovery Policy
The Process
PORC
Ordinance
Policies
Management Study Recommendation from Matrix.
Staff reviewed previous criteria for determining fees.
Development of policy included:
analysis of current and estimated cost recovery
Review of other cities
Staff input
Staff organized expenditures and revenues into cost centers by recreation activities.
Used Pricing Pyramid Model to formulate policy.
Model helps determine:
programs with higher subsidy
benefit to the community or individual
type of program being offered (general vs. specialized).
A definition of levels:
Allowed for allocation of activities
Amount of cost recovery to increase as the levels increase.
The Pricing Pyramid Model
Cost recovery percentages
Pricing Pyramid Model
Cost Recovery Percentage
Key Elements of the Policy
Minimum cost recovery levels
Review activities that have achieved or exceeded their recovery levels
Strategies for achieving cost recovery levels
The Cost Recovery Policy shall include other specific fee considerations (e.g. benchmarking of surrounding cities)
New activities are assigned to a level according to the Pricing Pyramid Model
Recreation Financial Assistance Program
Parks Board reviewed and recommended approval (7-0) at their April 9, 2007 meeting
Staff seeks City Council direction and is available for questions.
Staff contact: Steve Polasek (817-748-8018)