04-20-1994 RACC RPTS - Laserfiche WebLink

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CITY OF RIVERSIDE INTEROFFICE MEMO TO: Recreation and Cultural Committee FROM: Barbara Stec Finance Direc DATE: April 20, 1994 Agenda Item No.: 1 SUBJECT: Recreation Program User Fee Policy Development Background: At the July 21, 1992 meeting, the City Council approved a request by the Park and Recreation Commission that the Council direct the Commission to develop policies and guidelines for recreation program user fees. Beginning in October 1992 and continuing through April 1993, staff met with members of the Recreation subcommittee to provide cost information, currently approved recovery levels, and existing fee information for recreation programs. Specific revenue information, program definitions, and comparisons with neighboring jurisdictions were presented during the discussions. Fee proposals were developed for three user groups defined as youth, seniors and adults using consistent recovery levels for each group. Questions were raised regarding the appropriateness of the full costing method used to determine user fees for recreation programs. It was suggested that various cost components be removed, including fixed asset replacement, park maintenance, and building maintenance costs. Removal of significant cost components is a departure from the method adopted by City Council with the original MSI study and each update. City Council review is recommended if revision of the costing method used to determine program costs is intended. Discussions were discontinued without reaching a consensus. Fees for recreation programs have not been adjusted since September 1991 because there is not an equitable user fee policy in place. The Park and Recreation Commission was also requested to determine a permanent implementation date for proposed annual fee adjustments. Historically, fee changes for recreation programs have been implemented on September or October 1 following heavy summer utilization of programs. The annual update of the cost of services (fees and charges) study has just been completed. This revised program cost information will be helpful for developing fee policy.