Title
Discussion regarding Parks and Recreation Financial Sustainability Strategy and fees.
Summary
This item provides an overview of the Parks and Recreation Financial Sustainability Strategies developed in partnership with 110%, Inc., Parks and Recreation staff, and the Parks and Recreation Commission. Staff is seeking City Council's consideration of adopting The Monarch Financial Sustainability Strategy as the framework for establishing and adjusting fees, rather than adopting individual fees within the City's Master Fee Schedule. This is a timely request as staff anticipates pre-sales for memberships beginning in November. This approach establishes Council-approved cost recovery goals while providing staff the flexibility to make pricing decisions based on actual service costs, market conditions, and operational needs.
The strategies establish a consistent, data-driven approach to evaluating the full cost of recreational programs, services, and facilities. Services were organized into categories based on their level of community benefit versus individual benefit, with cost recovery goal ranges established using financial and operational data that account for both direct and indirect expenses, including materials, staffing, benefits, and contracted services.
For The Monarch, the strategy establishes nine service categories with cost recovery goals ranging from 0% for Human Services to 150-175% for Merchandise and Food & Beverages. Services providing greater community benefit have lower cost recovery expectations, while those providing greater individual benefit have higher expectations. For example, a Beginner Activity costing $1,000 to provide would be expected to generate $500-$700 in revenue under its 50-70% cost recovery goal, while a facility rental costing $1,000 would be expected to generate $1,200-$1,400 under its 120-140% goal. Revenue generated by higher-recovery services helps offset the costs of those with lower recovery expectations.
Because ...
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