65B - SERVICE FINANCIAL REPORT - Laserfiche WebLink

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MOSTLY INDIVIDUAL BENEFIT At the top of the Pyramid, the fifth level represents services that have potential to generate revenues above costs, may be in the same market Mostly space as the private sector, or may fall outside the core mission of the Individual agency. In this level, services should not be supported by subsidy, should Benefit be priced to recover full cost, and may generate revenue in excess of cost. Examples of these activities could include: Private lessons, company picnic rentals, other facility rentals for weddings or other services, concessions and merchandise for resale, etc. STEP 3: DEVELOPING THE ORGANIZATION'S CATEGORIES OF SERVICE Considering sheer volume, in order to avoid trying to determine the proper cost recovery for every facility, program, and service offered by the PRCSA, it was advantageous to "narrow down" facilities, programs, and services and place them in categories (groups of like or similar service) best fitting their descriptions. PRCSA's Categories of service can be found in Appendix A. During the first Cost Recovery workshop, the Project Team established category names and definitions reflecting the facilities, programs, and services currently offered, or likely to be offered in the future. Twenty-five (25) categories were identified. The charge to both Team Members and the public was to sort these categories onto appropriate levels of the pyramid model based on who they benefited (the benefit filter). Those categories ranged from mostly benefiting the Community as a Whole, to programs and services serving mostly an Individual benefit. There was also discussion of consideration of additional filters (discussed in Step 8 below), which often hold a secondary significance in determining placement on the Cost Recovery Pyramid. STEP 4: SORTING THE CATEGORIES OF SERVICE ONTO THE PYRAMID This step is critical to be completed with staff, governing bodies, and citizens in mind. The sorting process is where ownership is created for the philosophy, while participants discover the current and possibly varied operating histories, cultures, missions, and values of the organization. The process develops consensus and allows everyone to land on the same page — the page you write together. The effort must reflect the community and must align the thinking of policy makers. PRCSA brought together Team Members from across the agency as well as members of the public to sort existing categories into each level of the pyramid. The sorting process was a challenging step, and it was led by objective and impartial facilitators in order to hear all viewpoints. The process generated discussion and debate as participants discovered what others had to say about serving culturally and economically different parts of the community, about historic versus recreational parks, about adults versus youth versus seniors, about weddings and interpretive programs, etc. It was important to push through the "what" to the "why" to find common ground. The process enabled Team Members to lister and discover an appropriate philosophy for Santa Ana. The PRCSA Cost Recovery Pyramid Model (shown it Figure 1) shows how the categories of services were sorted onto the pyramid with input from the community. 26 65B-30