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HomeMy WebLinkAboutResolution No. 4154, Amending the Recreation and Aquatic Fees Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Ron Dingman, Parks and Recreation Director Chuck Winn, Assistant City Manager SUBJECT: Resolution 4154 - Recreation and Aquatic Program Fees MEETING DATE: May 26, 2009 RECOMMENDATION: Staff recommends that the City Commission adopt Resolution No.4154 amending the fees charged for Recreation and Aquatic programs. BACKGROUND: On March 23, 2009 staff presented resolution 4154, Recreation and Aquatic fees, to the Commission. At that meeting the City Commission directed staff to: · Revise the proposed fee schedule for Swim Passes, taking current economy into consideration · Develop a Scholarship program for Recreation and Aquatic programs for low-income families · Increase the proposed percentage charge for non-resident patrons · Review rates for lockers and parties at the Swim Center and consider increases Single Swim Pass Fees: The proposed fees presented on March 23, 2009 included increases for Swim Passes based on a visit rate of 56 per year. Staff has revised the calculations for the Swim Passes to be based on 45 visits per year for the 1 year pass. The option of purchasing a pass for 1, 3, or 6 months has also been reinstated into the fee schedule to provide flexibility in payment. The value of dollars spent for time purchased increases with the length of the pass. Proposed increases to the costs are listed as follows; Single Swim Passes Length of pass 1 Year 6 Months 3 Months 1 Month Break Even 45 visits 29 visits 17.5 visits 10 visits Adult (15-59) $180.00 ($145) $115 ($100) $70 ($65) $40 ($40) Youth (3-14) & Seniors (60+) $135 ($105) $85 ($70) $50 ($45) $30 ($30) *Rates in parenthesis are current rates 69 Family Swim Pass: We are proposing increases to the family swim pass rate using the formula described below. This formula results in a good value for families while increasing revenue. The existing fee for a Family is $200, which is less than 2 Youth Annual passes at current rates- and does not limit the number of family members. Family Pass – 1 adult @ full price / each additional family member @ half applicable price Example: 2 adults and 2 youth = $405.00 1 year family of 4 pass $257.50 6 month family of 4 pass $155.00 3 month family of 4 pass $90.00 1 month family of 4 pass Swimming Pool General Admission: Daily admission for pools have remained the same with the exception of the Family fee increasing from $8.00 for unlimited number of family members to $10.00 for 4 family members, which includes Grandparents, and $1.00 for every additional family member. In 2008 both City pools combined generated $400,000 in revenue from swim lessons, groups, and admissions. An additional $20,000 was generated from locker rentals, parties, vending machines, and merchandise sales; for a total of $420,000 in revenues. Birthday Parties & Locker Rental: Birthday Party current and proposed fees are as follows: Package Guests Room & Cake Current Room Only Proposed Room & Cake Proposed 1 Up to 5 $30 $50 $68 2 6-10 $45 $69 $87 3 11-15 $60 $88 $111 4 16-25 $80 $107 $132 Rental of the Birthday Party room includes swimming for maximum number of guests in package. Cake prices increase slightly with size. Parties are for 50 minutes. Staff time includes picking up cake, cleaning room, setting table, and being available for assistance. Locker rental fees are currently $30 for 3 months, including a $15 key fee. Locker fees were increases in FY08 form $20 to $30 and staff is not recommending any increases for locker fees at this time. Swimming Lesson Fees: Swim Lesson fees have remained the same but classes have been reduced from 50 minutes to 30 minutes. This is also more reflective of national rates and class times. Research has shown that students learn best and classes are more productive when class length does not exceed 30 minutes. By reducing the class time, students receive more focused benefit and there is more time available for other programs such as lap swimming and water aerobics, which will increase revenue. Youth Scholarship Program: Over the years, free participation has been granted to children on a need basis without specific structure or tracking. Staff has researched existing youth scholarship programs for recreation in Montana and around the United States to help in developing a program for Bozeman’s Recreation and Aquatic programs. 70 The program included in your packet outlines a process for applying and qualifying for assistance. The program is intended to assist families who would otherwise be unable to enroll their child in a program and is based on annual household income and number of household members. A committee comprised of recreation staff members will review applications to determine eligibility and level of assistance based on comparisons to income studies for Montana. Recreation Program Fees: In FY09, recreation programs cost the City approximately $102 per hour of programming, averaging $6.40 per participant/hour (based on average class size of 16 participants in 2008.) We currently price Recreation Programs based on a cost of $2.50 per participant/hour with materials included in that charge. This is a general fund subsidy of $3.90 per participant/hour; or a subsidy of 60% of total costs. Staff is proposing an increase from $2.50 per hour to $3.50 per hour which would decrease the City’s subsidy of these programs from approximately 60% to 45%. The proposed fee schedule section for recreation programs has not changed from the March 23, 2009 proposal, which is included in your packet as well as on the revised proposed fee schedule. Non-Resident Fees: Additional charges for non-residents signing up for recreation programs have averaged around 20%. In an effort to make this non-resident charge more predictable and equitable we are recommending a percentage increase for all program fees for non-residents. On March 23 staff proposed a 20% increase for non-resident fees be adopted. With direction from the Commission to recover a higher percentage of program costs, staff has increased the recommendation to 40%. This would decrease the subsidy for non-residents from 50% to 23%. We have included a chart below to illustrate the differences and show the increase necessary to eliminate the subsidy entirely. Program cost per hour % of non- resident charge Dollar amount of cost recovery Dollar amount of subsidy Percentage of subsidy $6.40 20% $4.20 $2.20 34% $6.40 40% $4.90 $1.50 23% $6.40 83% $6.40 $0 0% A 100% cost recovery for programs, for non-residents, would require approximately 80% increase in the current proposed fees from what City residents would pay. Non-residents account for approximately more than 30% of the total participation in Recreation programs. In FY08 non-resident fees in Recreation generated about $150,000 in revenue. Staff believes that too large of an increase for non-residents may result in pricing some families out as well as significantly reducing participation and revenue generated by these programs. Recreation and Parks Advisory Board: The Recreation and Parks Advisory Board motion and voted at their February 12, 2009 meeting to approve the Recreation and Aquatic fee schedules as proposed on March 23, 2009. FISCAL EFFECTS: 71 If adopted, these fee increases would become effective on July 1st, 2009. Aquatic Fees: Based on historic swim pass sales, increasing pass fees as recommended is estimated to generate an additional $30,500 to the General Fund. General subsidy of Aquatics programs would decrease from approximately 47% to 43.4%. Recreation Fees: Based on 2008 program participation, increasing fees as recommended is estimated to generate an additional $19,000 plus approximately $6,000 in material costs to the General Fund. General Fund subsidy of Recreation Programs would decrease from approximately 60% to 45%. Non-resident fees: Based on 2008 non-resident participation in Aquatic and Recreation programs, increasing fees by 40% would result in an approximate increase of $30,000 in revenue and would decrease the City’s subsidy from 50% to 23%. ALTERNATIVES: As suggested by the City Commission. Attachments: *Proposed Fee schedule *Scholarship program *Aquatics revenue exhibit *March 23, 2009 Staff memo 72 Bozeman Recreation Division Fee Schedule – 2009 Recreation Program Fees Program fees based on - $3.50 per hour * Materials, equipment, supplies, and staff costs added when applicable Aquatic Program Fees Daily Admission Adults - $4.00 Youth (3-14) & Seniors (60+) - $3.00 Family of 4 (Grandparents included) - $10.00 *Additional family members - $1.00 each Swim Passes 1 Year 6 Months 3 Months 1 Month Adult (15-59) $180.00 $115 $70 $40 Youth (3-14) & Seniors (60+) $135.00 $85 $50 $30 Family Pass – 1 adult @ full price / each additional family member @ half applicable price Example: 2 adults and 2 youth = $405.00 1 year family of 4 pass $257.50 6 month family of 4 pass $155.00 3 month family of 4 pass $90.00 1 month family of 4 pass 12 Time Punch Cards (Transferrable) Adult - $40.00 Youth (3-14) & Seniors (60+) - $30.00 Swim Lessons Classes - $5.00 per class Private - $22.00 per class Recreation Program Fee Examples · Fall Preschool Program (8 program hours, includes $2.50 for materials) - $30.50 · Spring T-ball League (11 program hours, includes $6.75 for T-shirt) - $45.25 · Summer Youth Program (12 program hours, includes $3.00 for materials) - $45.00 73 Birthday Parties Package Number of Guests Room Only Room & Cake 1 Up to 5 $50 $68 2 6-10 $69 $87 3 11-15 $88 $111 4 16-25 $107 $132 Lockers 3 months - $30 ($15 charge for lost keys) *Non-resident fees additional 35% **Fees may be adjusted as necessary depending on program costs 74 - 1 - COMMISSION RESOLUTION NO. 4154 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING RECREATION AND AQUATIC FEES CHARGED FOR PROGRAMS. WHEREAS, the Recreation and Parks Advisory Board has submitted a recommendation for the establishment of a fee schedule for the City of Bozeman Recreation and Aquatic Programs; WHEREAS, the City Commission has approved the establishment of said fees; NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana: Section 1 That the fee schedule- attached hereto as Exhibit “A”- be established for recreation and aquatic programs; Section 2 The fee schedule shall be effective July 1, 2009. PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 26th day of May 2009. ___________________________________ KAAREN JACOBSON Mayor ATTEST: _____________________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 75 City of Bozeman Parks and Recreation Department Youth Scholarship Program The City of Bozeman, Parks & Recreation Department is dedicated to quality service and strives to provide affordable recreation opportunities for all youth within the City limits. Our Scholarship Program is designed to help individuals participate in activities that might otherwise be financially unfeasible. Youth Scholarship Statement: Any resident of Bozeman who wishes for their child to participate in a City of Bozeman sponsored recreation program, and is in need of financial assistance, may apply for aid through the Bozeman Recreation Division’s Youth Scholarship Program. All applicants are reviewed on a first come, first serve basis. All applicants must be a resident of Bozeman. Families that are eligible for scholarships can apply for 25% to 100% of program costs and for a maximum of three classes per household, during any fiscal year (July 1 - June 30). Applications will be reviewed by a committee to determine eligibility and scholarship amount. Completion of this application does not guarantee a scholarship from the City of Bozeman. The application must be completed, include necessary attachments, and be approved by the Recreation Division before programs may be attended. Steps for completing application: 1. Complete a scholarship application form. 2. Complete an activity registration form. 3. Send all completed forms to: Bozeman Recreation Division 409 N. Bozeman Ave. Bozeman, MT 59715 Application forms may be obtained at the Beall Recreation Center, the Swim Center, or online at www.bozeman.net If you have any comments, questions or concerns, please feel free to call the City of Bozeman, Recreation Division at 582-2290 76 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Ron Dingman, Park and Recreation Director Anna Rosenberry, Finance Director Chuck Winn, Assistant City Manager SUBJECT: Resolution No. 4154 Establishing Recreation and Aquatic Fees Charged MEETING DATE: March 23, 2009 RECOMMENDATION: Adopt Resolution No. 4154 BACKGROUND: We have evaluated charges for Recreation and Aquatic programs and determined that adjustments to two of the fees are necessary. Recommended Fee Changes: · Recreation Program Fees · Swim Center Pool Pass Fees No Fee Changes: · Swimming Pool General Admission Fees · Swimming Lesson Fees; change in class length. Recreation Programs Fees: In FY09, recreation programs cost the City approximately $102 per hour of programming, averaging $6.40 per participant/hour (based on average class size of 16 participants in 2008.) 78 Recreation Fee – Per participant, per program hour Current Rate $2.50 per participant/hr Proposed Rate $3.50 per participant/hr We currently price Recreation Programs based on a cost of $2.50 per participant/hour with materials included in that charge. This is a general fund subsidy of $3.90 per participant/hour; or a subsidy of 60% of total costs. Increasing the hourly charge to $3.50 puts the city’s subsidy at $2.90 per participant/hour, or 45% of total costs. For out-of-city residents, the charge increases 20%, to $4.20 per participant/hour, reducing the subsidy to $2.20 (35% subsidy.) See Exhibit 1. In the coming year, we will continue to improve on our recreation class “scholarships.” Over the years, free participation has been granted to children on a need basis without much structure or tracking. We will be developing a scholarship policy and program. We believe this is the appropriate method to ensure that children in need are not left out of important recreation opportunities, and will be tracking scholarship participation going forward. Swim Center Pool Passes: We are proposing a change to rates for 1-year Swim Passes; basing them on a standardized method of 56 uses per year at the applicable admission rate. These prices are more reflective of use and national charges for swim passes. 1-Year Adult Swim Passes Golden, CO = $385 Stiener, UT = $240 Reno, NV = $300 Bend, OR = $384 A pass holder is likely use the pool a minimum of 2 to 3 times per week, or 104 to 156 times per year. Current pass rates only recover the cost of approximately 40 visits. The proposed Family Annual Pass fees are priced as follows; 1st adult at full price / each additional family member at ½ price. The Family example is based on 2 adults and 2 youth. At the current family rate, and assuming 2 adults and 2 youth, we recover approximately 16 visits. 79 Swim Passes Adult Youth Seniors (60+) Family (of 4) Current $150 $110 $130 $230 Proposed $225 $170 $140 $508 Swimming Lesson Fees: Swim Lesson fees have remained the same but classes have been reduced from 50 minutes to 30 minutes. This is also more reflective of national rates and class times. By reducing the class time, students receive more focused benefit and there is more time available for other programs such as lap swimming and water aerobics, which will increase revenue. Swim Lessons Price per class, 30 minutes NO CHANGE in price, time reduced. $5.00 Swimming Pool General Admission Fees: Daily admission fees are proposed to remain the same as they are in line with other pool admission around Montana and the west. Admission – Daily Adult Youth Seniors (60+) Family (of 4) NO CHANGE $4.00 $3.00 $2.50 $10.00, with $2.00 for each additional member In 2008 both City pools combined generated $400,000 in revenue for swim lessons, groups, and admissions. An additional $20,000 was generated from locker rentals, parties, vending machines, and merchandise sales; for a total of $420,000 in revenues. Increasing the swim pass rates puts the city’s subsidy of Aquatics Programs at 42% of total costs. See Exhibit 2. 80 FISCAL EFFECTS: Recreation Programs: Based on 2008 program participation, increasing the fee as recommended is estimated to bring in an additional $19,000 plus approximately $6,000 in materials costs to the general fund. General Fund subsidy of Recreation program s would decrease from approximately 60% to 45%. Aquatics Programs: Based on historic pass sales, increasing swim pass fees as recommended is estimated to bring in an additional $42,000 to the general fund. General Fund subsidy of Aquatics programs would decrease from approximately 47% to 42%. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, _________________________________ ____________________________ Ron Dingman, Parks and Recreation Director Chuck Winn, Assistant City Manager Attachments: Exhibit 1 Exhibit 2 Resolution No. 4154 Report compiled on 3/17/09 81