PRCAgenda_03Mar10 - Laserfiche WebLink

Home Browse Search

• Evaluation of Options Option 1 Continuing to subsidize the recreation programs at a level higher than neighboring cities will cost too much and doesn't subject the program to market efficiencies. Option 2 Any increases that raise our program fees higher than neighboring cities' fees will lead to loss of market share and will result in lost revenue. Option 3 A combination of fee increases, cost cutting, and dropping unprofitable programs that gets fee support to 50% will force the program to be more responsive to the marketplace, lead to more efficiency and be more responsive to the elastic demand. Recommendations • Increase fees for all programs by five dollars. • Initiate policy that cancels programs if enrollment fees will not meet the payroll of assigned coaches. This will synchronize our coaching payroll with demand. • Eliminate the Near-ball Plus and Teen Tennis programs because of low enrollment. • Add a beginner Lacrosse program. This fast growing sport has been added • by several cities recently and has been popular and profitable. • Begin charging for Hotshots Basketball-and the Time-In program. Hotshot's Basketball has been very popular as a no cost class and staff believes that people will be willing to pay for it. The Time-In playground program will be cut to four weeks instead of six and a fee of $10.00 per week will be charged. • Cut the budget for supplies and printing by $2,300. • Cap scholarships at the level of donations received from the previous year. In order to prevent any child from being excluded because of need, staff will increase efforts to raise awareness of this scholarship fund. Goal • Cut costs and raise revenues enough so that the recreation program fees equal 50% of the total program cost. This will put the recreation program at slightly above the north metro average. • Cut and add programs more aggressively so that the programs more accurately reflect market demand. • Foster a sense of community by providing quality recreation programming in a neighborhood setting that is competitive with surrounding communities. • Incremental implementation of these measures over the next two years. Budget Implications • Reduction of total program costs by $8,750 per year by 2004.