65B - SERVICE FINANCIAL REPORT - Laserfiche WebLink

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DOES "COST RECOVERY" MEAN COVERING ALL COSTS THROUGH FEES? No. In most cases where fees are appropriate, the cost recovery target will be set to recover a portion, or all, of the "direct" cost. In some cases, where the individual benefit is very high, the cost recovery target will be set to cover more than 100 percent of the direct cost. The fee will also recover some or all of the indirect cost of providing the program or services, as these are still very real costs that are caused by the program or activity. Cost recovery can also be accomplished through other forms of revenue such as grants, donations, sponsorships, etc. COST RECOVERY IN PUBLIC PARKS AND RECREATION Communities across the country vary in terms of how they allocate direct and indirect costs; qualifiers such as availability of resources, size, scope of services, community demand, and ability to pay have an impact. Therefore, different agencies must maintain cost recovery and tax investment levels appropriately based upon their own community's characteristics, values, and available funding. The Resource Allocation and Cost Recovery Philosophy, Model, and Policy provides a rational, thoughtful approach to allocating resources and setting fees for programs and services with the outcome of beginning to bring the PRCSA closer to what is occurring in the industry. COMPARING FEES WITH OTHER MUNICIPALITIES The process did not include comparing against other municipalities. Comparing against other municipalities is like comparing apples to oranges because each community has its own mission and values, and places a different emphasis on aspects of its service provisions, such as youth, senior citizens, protecting land, and tourism, and may also have different requirements or desires for how tax dollars are used. This comprehensive effort and approach to providing parks and recreation services is to introduce and implement strong "best practice" business tools. The overall goal of this plan is to initiate and sustain practices and examine policy and rules that affect overall desired outcomes of a healthy and vibrant community. The process is much more than determining fees and charges, it is providing a customized, yet tested operating tool that will change the way PRCSA carries out its business. This is a way of leveraging the current and potential financial and other resources of the Agency addressing both present and future circumstances. It not only considers financial resources, but encourages collaborative efforts, cost containment and avoidance, and service provision strategies, to best leverage all resources. The Cost Recovery Model provides a framework for discussion with the community and guidance for determining which facilities and services should be fee based, and will help ensure that services are priced at a level commensurate with the City Council's objective for cost recovery. The adoption of the model will help the PRCSA meet established goals for future cost recovery levels and budgeting. WHERE IS PRCSA TRYING TO GO? The PRCSA desires to develop a long-term strategy, structure, and system to provide for its fiscal health and sustainability and that is responsive to the community and economic conditions. This includes: • A philosophy for how to determine and implement fees. • A fair and equitable Cost Recovery Model based on the Recreation and Community Services Statement of Purpose. • A mechanism and consistent language for communicating how taxpayer funding is used. • A lessening of the Agency's dependence on tax funds by approaching, or even exceeding, cost recovery goals as determined through the process. Opt.'; 21 65B-25 r-'=