Agenda - Parks and Recreation Commission - 11/14/2019

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o Considerable individual benefit — Specialized services that are targeted to specific groups who have the ability to pay for them. Some programs may be competitive, and fees are set to recover i00% of direct and indirect costs o Mostly individual benefit —These program have profit center potential and may be in the same market as the private sector. These programs are designed to recover all direct and indirect costs, as well as a profit margin Once programs and services are assigned a location on the pyramid, cost recovery goals must be established. Community needs and policy maker perspectives must be accounted for, but the organizations overarching financial goals and objectives must be understood. Besides the benefits filter, there are other influential factors to be considered: • Commitment — what is the intensity of the program, what is the commitment of the participant? • Trends — is the program traditional or is it a fad? • Marketing — what is the effect of the program in attracting customers? • Relative cost to provide — what is the cost per participant? • Economic conditions — what are the financial conditions of the community? • Financial goals — what are the financial goals? Fully subsidized programs or generate excess revenue? 'on- residents t:°1 It is common for parks and recreation agencies to offer a reduced rate for their residents. This encourages residents to participate in activities where they live, which helps develop community identity and increase engagement. For example, Elk River Parks & Recreation adds a $5 non-resident fee to programs under $49 and a sio fee for programs s o and over. ;.,;PaulI; arks .f ecre i .... adds a 5o% surcharge to the regular resident rate, which is much greater than other agencies. St. Paul has such a drastic difference due to the high demand of their programs and the fact they recently began allowing non-residents to participate in youth sports. E va ualoon Revenue and expenses should be recorded and analyzed regularly. This allows for comparison of budgeted and actual cash flows so that future budgets can be planned accordingly. For program fees that are set at the market rate, competitors' prices should be tracked accordingly. Fee As sistWA,ca.? Many agencies offer financial assistance to those who qualify, but there is not a uniform policy as communities have varying needs and available resources. Fee assistance is necessary to allow all users who want to participate in a program do so. Eliminating economic barriers is key to growing an involved community, as well as enriching people's lives through parks and recreation. Communities may fund these programs through community foundations, grants, sponsors, or other program revenues. Information on fee assistance programs in surrounding communities is below: Anoka -Hennepin Couu nuniLv Educ anion —Apply by calling the community education office of the desired program. • Youth —families who qualify for free or reduced -price meals may request fee assistance. • Adult — contact adult learning registration line to request assistance and eligibility information. • Early learners — ECFE activities, classes, and tuition are based on a sliding scale. ElkRiver„Parks & Recrea Lion — Fee assistance is available for Elk River residents. Please inquire when registering for more information. Frid€ey Parks & Recrda rion — Fee assistance is available to Fridley residents who meet the MN School District Free or Reduced Lunch Program guidelines. You must apply in person with proof of residency and Free/Reduced Lunch statement from the school. Call the Recreation office for more information.