65B - SERVICE FINANCIAL REPORT - Laserfiche WebLink

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VI. RECOMMENDATIONS The main purpose of this endeavor has been to create a fair, equitable, and defensible cost recovery system for establishing and adjusting fees and charges having credibility with City Council, stakeholders, the public, and Team Members. As a result of the comprehensive process and impending results, as illustrated in the Cost Recovery Pyramid Model, the PRCSA will begin the process of tracking cost, implementing strategies and aligning financial resource allocation once cost recovery goals are developed. In order to identify cost recovery goals, the PRCSA will need to identify typical and measurable direct and indirect costs associated with providing programs and services. Only then will they be able to define categories of programs and services with associated target cost recovery minimums. These efforts are intended to guide goals and objectives, and decision -making proven to create service sustainability for the organization. RECOMMENDED COST RECOVERY POLICY STATEMENT PRESENT POLICY AND PRACTICE The PRCSA does not have a current cost recovery policy. Until now, there has not been a full understanding of cost recovery concepts, and there is inconsistent application of program and service costs. There is lack of adequate philosophy based on the mission of the PRCSA to establish adequate and non -conflicting cost recovery targets. An umbrella policy statement sets the underlying principles of the Cost Recovery Philosophy, and service pricing approach. Key elements include: a. Basic level of service is "free" (supported by tax revenues) b. Fees are a responsible and necessary supplement c. Community benefit = use of tax dollars d. Individual benefit = use of fees e. The greater the individual benefit = lower rate of tax subsidy f. The policy considers economic climate, alternative providers, and market rate g. Fee reductions available for economic need The following overall Statement of Policy recommendation is intended to provide support to the establishment of a specific policy or practice. This policy statement should be adopted by the City. RECOMMENDED STATEMENT OF POLICY 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. g 37 6513-41 r-'=