65B - SERVICE FINANCIAL REPORT - Laserfiche WebLink

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EXECUTIVE SUMMARY As a publicly financed park and recreation system, the City of Santa Ana Parks, Recreation, and Community Services Agency (PRCSA or Agency) provides a basic level of services (such as social services) for the benefit of the community in exchange for tax dollars. Fees and charges and other methods to recover costs are considered a responsible and necessary means to supplement tax revenue to meet community demand; however, not at the expense of some of its most critical programs for the most at - risk populations. Cost recovery is not a philosophy; it is a strategy in the much larger context of securing and allocating resources that allows Santa Ana to maximize services. In an effort to continually improve and enhance services and overall organizational effectiveness, PRCSA staff and community members participated in a comprehensive and extensive process to address financial sustainability through the creation of a Resource Allocation and Cost Recovery Philosophy, Model, Policy, and a Services Assessment. This process and its outcomes will serve to guide PRCSA in evaluating service provision strategies to ensure they are running at optimal levels, and the system is sustainable in the long run. All of the components of the process, through a review and assessment of services, programs, and facilities, directly influenced recommendations for the development of tax investment allocation and cost recovery goals that inform future pricing strategies. The transforming process also included a market study, a consideration of alternative providers, service provision strategies, and programming methodologies. This report documents the concepts, process, and outcomes and will serve as a staff training tool as new staff come on board. THE URGENCY FOR SANTA ANA Santa Ana is a high -density community that relies heavily on city services and facilities. The parks system is heavily used, which reduces the useful life of facilities and increases the cost of maintenance. The recreation programs are in high demand, which require staffing and contracted services to adequately deliver and manage programs. Various services have a fee associated that covers the cost of the service; however, in most cases, the services are subsidized or free. The Agency in general requires a process by which it can sustain itself for the long-term, especially important during, and after, the current health pandemic as there will be a shortage of tax revenue. With the scarcity of resources, the PRCSA needs to review existing processes and services to determine its future and how best to proceed. The PRCSA has a commitment to its core services that includes a robust system of parks and recreation centers. It must support these core facilities while maximizing revenues to offset the cost of services that take place within them and other sites. This process seeks to implement a practice that will result in organizational sustainability through a logical resource allocation model and pricing strategies. Opt.'; 6513-11 r-'=