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HomeMy WebLinkAboutReview Costs of Family Swim Passes.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Ron Dingman, Park and Recreation Director Chuck Winn, Assistant City Manager SUBJECT: Review Costs of Family Swim Passes MEETING DATE: November 16, 2009 AGENDA ITEM TYPE: Action RECOMMENDATION: Provide staff with direction on Family Swim Pass fee revision. BACKGROUND: On March 23, 2009, staff presented resolution 4154, establishing fees for Recreation and Aquatic programs to the commission. The commission approved that resolution. Since then, there has been some concern expressed over the new cost of a Family Swim Pass for the pool. Staff is seeking direction from the commission for making revisions to the resolution and possibly reducing the cost of the Family Swim Pass. FISCAL EFFECTS: Reduction in the Family Swim Pass fee will reduce revenue generated from the sales of these family passes. ALTERNATIVES: As suggested by the City Commission. Attachments: March 23, 2009 Commission Memo Report compiled on 11/10/09 218 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.) 219 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. 220 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. 221 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 3/17/09 222