65B - SERVICE FINANCIAL REPORT - Laserfiche WebLink

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As the benefit is increasingly to an individual or select group of individuals, it is appropriate to charge fees for the service at an increasing rate of cost recovery. Supervised or instructed programs, facilities, and equipment visitors can exclusively use, and products and services that may be purchased, provide examples where user fees are appropriate. The PRCSA shall also consider available resources, public need, public acceptance, and the community economic climate when establishing fees and charges. In cases where certain programs and facilities are highly specialized by activity and design, and appeal to a select user group, the Agency shall additionally consider fees charged by alternative service providers or market rates. Fees and charges can be set to recover costs in excess of direct and indirect costs, where appropriate, as a method of subsidizing other services. The Agency may subsidize the cost recovery objective of services for persons with economic need or other targeted populations, as determined by policy of the City Council, through tax -supported fee reductions, scholarships, grants, or other methods. The City Council may also approve exceptional fees or fee waivers upon determination the fee arrangements will benefit the public interest. SERVICES AND FINANCIAL STRATEGIES RECOMMENDATION ONE: COST RECOVERY The intent of this focus area is to develop targets and a timeframe for identifying cost recovery goals. Over the past year Team Members have completed a very comprehensive and intense process of developing a best practice business tool, known as The Pyramid Methodology. This will now live within the PRCSA for ongoing use as an established underlying philosophy and provide direction for much more defensible and consistent application. This work was facilitated to ensure the integrity of the tool and challenge Team Members in its proper use. After an introduction and training, Team Members articulated and refined the menu of programs, services, and activities currently provided by the Agency; categorized those into like groupings; and worked with the public to sort each category of service into one of five pyramid levels, representing a well-defined continuum of a shifting balance of community and individual benefit. OBJECTIVES 1.1: The following tier targets are based on a first pass at estimating a possible cost recovery range. Detailed cost accounting for each program and service was not available in the detail needed to develop the subsidy level target ranges for the pyramid based on actual expenses verses revenue generated. This will need development and refinement over the first year of implementation, so these could be adopted as preliminary targets to be re-evaluated prior to year two. Team Members will need to work with Agency Leadership to identify a methodology for tracking program cost and to determine the typical and measurable direct and indirect costs that will be tracked. Tier Level Subsidy Level Target Range Tier 5 0% Tier 4 0-29% Tier 3 30-64% Tier 2 65-94% Tier 1 95-100% 38 Q 65B-42