65B - SERVICE FINANCIAL REPORT - Laserfiche WebLink

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V. KEY FINDINGS The defining and placement of categories on the pyramid tiers provided the opportunity to question the purpose of each of the programs and services within each category, who they were serving, and how those programs and services are funded and delivered. During the first year of implementation, Team Members will have the opportunity to respond to the volume of information now available, allowing them to further refine definitions and re-evaluate early decisions made in this process. Throughout the series of workshops several key issues emerged, including: • Identifying costs accurately and defining which costs should be recovered and which should be considered indirect and a basic service. • Identifying fee strategies and how they may be applied. Other key findings are discussed below. COST RECOVERY Cost recovery targets could not be identified for each level of the Pyramid to assist in future planning and determination of appropriate pricing. These targets will need to be identified once PRCSA has established an effective way to track cost. As the Agency improves tracking and more precise calculations become available, it is possible some services may be better defined and moved to more appropriate categories. As soon as Tier targets are established, this approach will empower the Agency to use fees and charges to supplement the tax investment that allows it to affirm its priorities for investment. PRCSA is not a static operation and needs flexibility within a philosophically -based structure to appropriately carry out its business. This model will allow it to do so. FEES FOR SERVICE Fees for services should be reviewed annually and adjusted as necessary to meet cost recovery objectives and City policy. It is not expected that all fees will be immediately adjusted, but fees will be examined with each budget and marketing cycle for appropriate categorization, with a goal of implementing the Pyramid tier outcomes, as possible. It is recognized that market, historical, and political factors play a major role in any fee change, and sensitivity to these issues is paramount while the adjustments take place to meet the goals over time. It is in the purview of the PRCSA Director to adjust some minor program and service fees as needed, and others will be recommended at the appropriate time as part of the budgeting process. However, it should be noted that incremental annual increases appear to be more tolerable than larger increases less frequently, and this has become a best practice in parks and recreation agencies over time. There will be programs and/or facilities where cost recovery is different from that suggested by the Pyramid model exercise, simply based on the market rate, meaning the City simply can't charge what is indicated or no one will participate, or can charge more, because of the market rate and there is demand. There are valid reasons for charging "Market Rate." These programs should be identified and acknowledged for the role they play. Opt.'; 5 6513-39 r-'=