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~-/ L~) Falcon Heights Recreation Fees Problem The percentage of total program costs covered by user fees is lower than the north metro average. What explains this and how can we increase this percentage while still providing quality recreational services? Metro Standards The recreational programs that are offered by Falcon Heights are classified as youth recreational and playground programs. A study recently undertaken by the city of New Brighten indicates that the North metro average fee support for these type of programs is 48%. (See table 1) In 1995 the city of Maplewood hired the firm of David M. Griffith and Associates to do a cost/revenue analysis of their recreation programs. The youth recreation and playground programs had the lowest level of fee support, averaging 20%. The recommendation of that analysis was to reach 60% fee support through a combination of raising fees and dropping programs with low attendance. This goal has not been reached in all programs. Roseville Park Director Lonnie Brokke stated that youth and senior programs in Roseville average 50% fee support. • Falcon Heights Fee Support Since 1995 fee support for youth and playground programs in Falcon Heights has fluctuated between a high of 38% and a low of 24% (see chart 2) Reasons for Level of Fee Support • Prior to 2000 the supervisor's wages did not come out of the recreation special revenue fund. Charging these wages to the recreation special revenue fund gives a more accurate picture of the true cost of the program. • .Demand for programs is elastic and revenue can vary as much as 25% over a two-year period. • The recreation program has offered a scholarship for families that are unable to pay for youth recreation. This program was designed to be covered by donations. The cost of scholarships now exceeds the amount of donations. • The time in playground program and hotshots basketball have been offered at no cost as a means of introducing families to Falcon Heights recreation programs. Cost of these programs is approximately $2,400.00 per year. Options 1. Continue program as it is and subsidize youth recreation at a higher level than the north metro average. 2. Raise fees so that they cover the total cost of the program. 3. Use a combination of fee increases, cost cutting and selective cutting of • unprofitable programs to reach a 50% fee support level.