Laserfiche WebLink
II. THE COST RECOVERY PYRAMID METHODOLOGY <br />The Green Play Pyramid Methodology used in development of the Cost Recovery Model is built on a <br />foundation of understanding who is benefiting from park and recreation services to determine how the <br />costs for service should be paid. <br />The Cost Recovery Pyramid Model illustrates a pricing philosophy based on establishing fees <br />commensurate with the benefit received. Descriptions regarding each level of the pyramid are provided; <br />however, the model is intended as a discussion point and is very dependent on agency philosophies <br />to determine what programs and services belong on each level. Cultural, regional, geographical, and <br />resource differences play a large role in this determination. The resulting pyramid is unique to each <br />agency who applies this methodology. <br />Application of the pyramid methodology begins with the purpose of the organization, but must also <br />address other considerations: <br />• Who benefits from the service, the community in general or only the individual or group receiving <br />the service? <br />• Does the individual or group receiving the service generate the need, and therefore, the cost of <br />providing the service? An example of this type of service is a permitted activity in a park requiring <br />police presence above and beyond the norm. <br />• Will imposing the full cost fee pose a hardship on specific users? <br />• The ability to pay is different than the benefit and value of a program, activity, or service, and <br />therefore, should be dealt with during the implementation phase of pricing and marketing. <br />• Do community values support taxpayer investment for the cost of service for individuals with special <br />needs (for example, people with disabilities or low-income)? <br />• Will the level of the fee affect the demand for the service? <br />• Is it possible and desirable to manage demand for a service by changing the level of the fee? <br />• Are there competing providers of the service in the public or private sector? <br />The application of the model is broken down into the following steps: <br />Step 6 , <br />Steps Deme^mining <br />Step6 defining 0ired subsidy/cost <br />antl lntlireR remverykvels <br />5[cV9 Sorting [he Casts <br />Categories of <br />Step Developing an Service onto <br />egenry's fie Pyramid <br />Stepl Understanding Categories of <br />benefitfiiters Service <br />euildmg on <br />your a¢enNs <br />and community <br />priorities <br />65B-27 <br />&ppah� <br />Step) <br />Establishing for influential <br />subsidy/cast factors <br />reooverygpak <br />step 30 <br />srepg E.amamn <br />Implementetion <br />