65B - SERVICE FINANCIAL REPORT - Laserfiche WebLink

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RECOMMENDATIONS The primary purpose of this undertaking has been to create a justifiable, fair, and equitable process for allocating and generating the Agency's resources. Established subsidy and cost recovery levels will guide if and when fees are employed, as well as the annual adjustment of fees and charges to sustain PRCSA for the long-term. A foundational piece of implementing the methodology is a Cost Recovery Policy Statement for consideration by City Council. The statement captures and articulates the underlying resource allocation and cost recovery philosophy to be used to apply fees and charges when desired or necessary. It does not dictate the amount of any fee. This statement is supported by the subsequent recommended detailed operational and financial strategies. It is anticipated that this policy statement be adopted by the City. Recommended Cost Recovery Policy Statement As a publicly financed park system, the PRCSA provides a basic level of service free to the public in exchange for tax dollars. However, fees and charges and other methods to recover costs are considered a responsible and necessary means to supplement tax revenue and regulate park use where appropriate. In establishing fees and charges, the Agency will determine the direct costs of providing services and establish goals to recover those costs. The appropriate level of cost recovery will be based on an assessment of who is benefiting from the service provided. If the benefit is to the community as a whole, it is appropriate to use taxpayer dollars to completely, or primarily, fund the service. Examples of services that primarily provide community benefits are hiking and biking trails, play areas, parks, and large natural areas. As the benefit is increasingly to an individual or select group of individuals, it is appropriate to charge fees for the service at an increasing rate of cost recovery. Supervised or instructed programs, facilities, and equipment visitors can exclusively use, and products and services that may be purchased, provide examples where user fees are appropriate. The PRCSA shall also consider available resources, public need, public acceptance, and the community economic climate when establishing fees and charges. In cases where certain programs and facilities are highly specialized by activity and design, and appeal to a select user group, the Agency shall additionally consider fees charged by alternative service providers or market rates. Fees and charges can be set to recover costs in excess of direct and indirect costs, where appropriate, as a method of subsidizing other services. The Agency may subsidize the cost recovery objective of services for persons with economic need or other targeted populations, as determined by policy of the City Council, through tax -supported fee reductions, scholarships, grants, or other methods. The City Council may also approve exceptional fees or fee waivers upon determination the fee arrangements will benefit the public interest. 14 65B-18