HomeMy WebLinkAbout04.13.11 Work Session Packet
City of Farmington
430 Third Street
Farmington, MN 55024
Mission Statement
Through teamwork and cooperation,
the City of Farmington provides quality
services that preserve our proud past and
foster a promisingfuture.
AGENDA
CITY COUNCIL WORKSHOP
APRIL 13, 2011
3:00 P.M.
CITY COUNCIL CHAMBERS
1. CALL TO ORDER
2. APPROVE AGENDA
3. DISCUSS PARKS AND RECREATION BUDGET
4. ADJOURN
PUBliC INFORMATION STATEMENT
Council workshops are conducted as an iriformal work session, all discussions shall be consideredfact-ftnding, hypothetical and unofficial critical thinking exercises.
which do not reflect an official public position.
Council work session outcomes should not be construed by the attending public and/or reporting media as the articulation of a formal City policy position. Only
official Council action normally taken at a regularly scheduled Council meeting should be considered as aformal expression of the City's position on any given matter.
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Per Capita Spending on Parks and Recreation Operation and Maintenance
2008 2009 ***2010
Population *21,343 *21,654 **21,086
Parks $22.68 $26.68 $28.76
Recreation $22.31 $13.22 $15.17
Rambling River Center $7.46 $7.88 $6.90
Arena $16.46 $16.65 $17.26
Outdoor Pool $6.98 $5.08 $5.25
Total $75.89 $69.51 $73.34
Tax Payer Support Per Capita Operation and Maintenance
2008 2009 ***2010
Population *21,343 *21,654 **21,086
Parks $22.50 $26.25 $28.47
Recreation $17.41 $8.44 $10.57
Rambling River Center $3.51 $6.34 $5.92
Arena $0.00 $0.00 $0.00
Outdoor Pool $0.00 $0.00 $0.00
Total $43.42 $41.03 $44.96
Spending on Park Improvements
2008 2009 ***2010
Population *21,343 *21,654 **21,086
Per Capita Spending $24.68 $1.88 $4.81
Taxpayer Support Per $0.00 $0.00 $0.00
Capita
* City staff estimate based on building permits issued
** 2010 Census
*** Pre-audit
-------- - ---
.
Farmington Parks and Recreation
Department's Strategic Revenue
Plan
Parks
Recreational
Programs
Recreational
Facilities
TABLE OF CONTENTS
Pag~
I. Introduction......... ................................................................................... ..2
][[. ])eflIlitiolls................................................................................................4
]][[. lJellefits ..................................................................................................6
IV. ])escriptioll of Services and Facilities............................................ ............. .......7
v. Pricing Services. ........................... .................. ........... ............................ .... ...12
VI. Cost Recovery Standards.............................................................. .............. .14
~. J\PI>>eneJix...............................................................................................16
Farmington Parks and Recreation Department's Strategic Revenue Plan
1
I. Introduction
A. Rationale
The purpose for developing a Strategic Revenue Plan is so that members of the Parks and
Recreation Department, Parks and Recreation Advisory Commission, City Council and
residents of Farmington have a better understanding of how fees are determined for services
provided by the Department. Without a Strategic Revenue Plan there is no clear direction about
what the level of expectation is for the amount of revenue that ought to be generated to offset
the costs to run programs and to operate and maintain facilities and parks. The City has a Fee
Ordinance but the ordinance does not provide any direction for what level of costs should be
recovered through fees charged. The Fee Ordinance only sets the fees that can be legally
collected by the City. Adopting this Strategic Revenue Plan then will provide the direction
needed for the Department to create a fee structure that identifies the level of costs recovered by
fees and the level of costs recovered by a subsidy.
B. Philosophy
A general philosophy that has been taken by the City of Farmington is that parks and recreation
is an important service for the community. The City's philosophy is very consistent with other
municipal governments meaning that it recognizes city government should provide recreational
programs, recreational facilities and parks to its residents. Parks and recreation can play an
important factor in improving the quality of life for individuals and the community collectively.
The greater question regarding the philosophy is what services should be offered by the Parks
and Recreation Department and how much should the City taxpayer's subsidize these services
versus how much the cost of these services should individuals and/or organizations be
responsible for covering.
c. Guiding Principles
The Strategic Revenue Plan should take into consideration that fees ought to be fair and
reasonable for the public. It also should take into consideration the direct and indirect costs that
ought to be covered by fees and charges. With this in mind, the following 10 Guiding Principles
were used to develop a Parks and Recreation Department Revenue Strategic Plan:
1. Provide and maintain public recreational facilities and parks by using alternative or
supplemental funding sources so that all residents are able to enjoy them.
2. As much as possible and to the extent required by law, provide equal opportunity
and access to programs, activities and events for all residents to enjoy.
3. Programs, facilities and parks should be staffed with trained and qualified workers
and the cost to provide such staff should be addressed when developing a fee pricing
structure.
4. Develop a target goal for a recovery rate at which the Parks and Recreation
Department's various divisions' total budget should be covered by fees and what
portion of the overall budgets should be covered by a subsidy.
Farmington Parks and Recreation Department's Strategic Revenue Plan
2
5. When developing pricing guidelines, identify who benefits from the service that is
received i.e. the community at-large or a specific organization or individual.
6. Determine why the service was needed and was the service specific to the group or
individual that required it i. e. supervision of or clean up after a softball tournament.
7. Determine whether the fee imposed will cause a hardship on the specific user.
8. Restraint should be used when considering the waiving of fees for an organization or
individual and should be an exception rather than the rule.
9. Fees that are set for programs, facilities and parks should be competitive with other
private and public markets.
10. When setting fees, determine what the appropriate level of direct and indirect costs
should be recovered by fees, by other funding sources and/or by tax payer subsidy.
Farmington Parks and Recreation Department's Strategic Revenue Plan
3
II. Definitions
Developing a Strategic Revenue Plan requires an explanation of language that is normally used
when describing fees, costs and customers.
A. Costs
There are certain costs associated with the service that is provided. Costs can be broken into two
areas direct cost and indirect cost. Following are definitions and some examples of what direct
and indirect cost means:
1. Direct Costs
These are costs that are specific to a program, facility or park. It is a cost for providing a
specific service. In recreation programs this would include such things as equipment,
supplies and materials purchased specifically for the program, personnel, contracted
service(s) and/or facility rental.
2. Indirect Costs
These are costs that are not specific to a program, facility or park but instead are overhead
costs that the Department has including: utilities, publicity, and/or other contractual services
not specific to the program but still needed for the program to run (contracted janitorial
services) successfully.
3. Administrative Costs
These are costs to offer the service such as administrative staff time for correspondence,
training, marketing, debt service and facility and grounds maintenance.
B. Fees
There are different methods for determining a fee that should be charged based on the cost
associated with the service provided.
1. No Cost Fee
This is a situation where no fee is charge to an individual or an organization, which means
the City will subsidize the direct and indirect cost of this service. A no fee cost is acceptable
when a situation occurs in which the entire community benefits from the service rather than
a specific individual or organization.
2. Partial Cost Fee
A fee that is charged to a group or individual to cover some portion of the entire cost but
covers less than the full direct and full indirect costs. In certain situations, this could be a
flat percentage charged for only the direct costs. It could also be a fee that is charged to
cover all of the direct costs but not any of the indirect costs. This generally means that there
Farmington Parks and Recreation Department's Strategic Revenue Plan
4
could and/or should be some level of subsidy for direct and/or indirect costs from other
funding sources such as City taxpayers, grants or dedicated funds to support the service.
3. Full Cost Fee
This is a fee charged to a group or individual to recover all of the direct and a portion of
indirect costs associated with providing a service. This normally means that there is no level
of subsidy by City taxpayers for direct costs but City taxpayers would cover some level of
the indirect costs. In a full cost fee situation a group or individual who benefits from the
service provided should cover all direct costs associated with the service provided and
should cover some portion of the indirect costs through a fee charged by the City. However
because there is some community benefit to the service provided, the City taxpayers should
also pay a portion of the indirect costs associated with the service provided.
4. Market Rate Fee
When there is a demand for a service, the fee is charged based on that demand, Generally
the market will dictate the fee based on what the competition is charging. Covering direct,
indirect and administrative costs is not the only reason for determining the fee to be charged.
The fee that is charged is based on what the market will bear for the service provided. Other
market providers such as private business, other governmental entities help set the market
rate fee. In this situation an organization or individual is the sole benefiting party and there
is no benefit to the community.
C. Customer Categories
1. Resident
A consumer who resides within the community's boundary from which the services are
provided and pays taxes for the services to be provided.
2. Non-Resident
A consumer who does not reside within the community's boundary from which the service
is provided and does not pay taxes in order for the service to be provided.
Farmington Parks and Recreation Department's Strategic Revenue Plan
5
III. Benefits
A. Value
Certain services or facilities have value to groups or individuals who use City facilities or access
City services. One of the benefits of developing a Strategic Revenue Plan is so that a value can
be placed on the various services provided by the City's Parks and Recreation Department.
B. Discipline and Control
If groups or individuals know that there is a certain value placed on a service or facility, it would
seem to allow for better control of groups or individuals who are paying a fee to access the
service or use a City facility. Charging a monetary fee would seem to allow the City to better be
able to discipline, control and hold accountable the participants.
C. Rationing
Creating a Strategic Revenue Plan should allow the City the ability to ration limited services and
facilities among a large number of users. The City must be careful that it does not prohibit
certain users groups from accessing a service or using a facility because of the fee or charge set.
It is a delicate balance between supply and demand. The City must make sure that the supply
does not exceed the demand or there will be services and facilities that may go unused. The City
must also make sure that the demand does not exceed the supply greatly as this will cause
frustration in users who may look somewhere else for a service or facility.
Farmington Parks and Recreation Department's Strategic Revenue Plan
6
IV. Description of Services and Facilities Provided by the
Farmington Parks and Recreation Department
A. Recreation
The City of Farmington is fortunate to have a wide diversity of programs, events and services
that it provides to its residents. City Recreation staff not only continues to provide standard
recreational programs but it also takes great pride in developing and implementing new
programs annually. Recreation staff offers programs, events and services in the following
programming areas:
1. Youth Programs
These programs serve participants under the age of 13 years. Some but not all example of
the types of programs that the Parks and Recreation Department offers include: sports, after
school programs, summer playground program, swim lessons and arts and crafts. The focus
on this group is to get participants into programs at an early age so that they learn about and
take an active interest in positive programs and hobbies rather than negative ones.
2. Teen Programs
These programs serve participants between the ages of 13 and 17 years. This is a difficult
age group to attract into programs offered by the Parks and Recreation Department. There
has been some limited success in developing a swim and jam event at the outdoor pool that
has resulted in the 13 and 14 year old age group participating in. High school students who
are 16-18 years of age are typically more independent with having the ability to acquire a
drivers license and thus are able to drive to more private based programs rather than public
based programs. The focus on these types of activities is to provide social opportunities
while promoting positive activities to participate in as opposed to negative activities to
participate in.
3. Adult Athletic Leagues
These programs serve participants between the ages of 18 and 55 years. The focus of this
type of program is to provide for a healthy outlet for adults from their work commitments
while promoting fitness, exercise and social interactions. Examples of leagues typically
offered by the Parks and Recreation Department includes: touch football, co-ree softball,
men's softball, co-rec soccer and co-rec volleyball.
4. Adult Programs
Like adult athletic leagues these programs are offered to participants between the ages of 18
and 55 years. These programs typically are offered to promote the development of a hobby
or satisfy the need for continued lifelong learning. Type of programs typically offered by
the Parks and Recreation Department includes: fitness, arts and crafts and individual sports
in a non-competitive but learning environment such as golf lessons.
Farmington Parks and Recreation Department's Strategic Revenue Plan
7
5. Senior Programs
These are programs that are geared towards adults 55 years and older. These programs
typically focus on promoting the following: development of a hobby, learning a new skill or
trade, social interaction and continued lifelong learning. Types of programs typically
offered by the Parks and Recreation Department includes: card playing, educational classes
on health and finance, fitness, day trips and extended trips/travel.
6. Adaptive or Special Needs
These are programs provided to participants of all ages who have abilities that differ from
other populations. Often it is attributed to a physical, mental or social condition. These
programs focus on providing social interactions, fitness, education and physical skill
development such as coordination and life skills such as personal hygiene. There are two
types of programs: adaptive and inclusive. Adaptive programs are specifically designed for
people with disabilities to participate in and are generally segregated activities. Programs
that are inclusive provide assistance or an accommodation for individuals with disabilities in
order for the individual to be integrated into general Parks and Recreation Department
programs. The Parks and Recreation Department provides limited programs that serve this
population category. Examples of some of the programs that could be offered are: arts and
crafts, sports, fitness and trips.
7. Scholarship Program
Members of the community who may want to participate in a program may not be able to
fmancially afford the registration fee. The goal of the scholarship program is to provide
fmancial assistance when needed in order to make all programs available to all members of
the community regardless of income. Appendix A contains an application form and
information about the guidelines/qualifications needing to meet in order to qualify for the
scholarship program.
8. Special Events
These are events sponsored by the City that are generally open to the public and geared for a
large group of people. The purpose of special events is to create a large event that
encourages social interactions between large numbers of people. An example in Farmington
of a special event is the Rambling River Days.
9. TripslTours
These are planned excursions that take advantage of private businesses primarily geared
towards leisure activities. The purpose of these types of activities is to create an awareness
of what is available in the community and in other communities beyond what the City's
Parks and Recreation Department offers.
B. Parks
The City has 23 parks containing 436 acres in its system. There are 42 miles of paved trails
that have been constructed over the years as a result of development. Park maintenance staff
Farmington Parks and Recreation Department's Strategic Revenue Plan
8
members have the responsibility to ensure that the parks, outdoor athletic fields and trails are
maintained at a safe and usable level. The areas of park and trail maintenance responsibilities
include the following:
1. Softball Fields
The City's Park Maintenance staff currently maintains two adult softball fields at Rambling
River Park. Routine annual maintenance work includes mowing, infield dragging,
fertilization, core aerating, top dressing, irrigating and spraying for weeds. The City also
paints lines to mark the fields for play. The City's Recreation staff organizes and schedules
several adult slowpitch softball leagues and an adult touch football league. In addition to
City sponsored leagues, the Farmington Men's Fastpitch organization also uses one of the
fields for league play.
2. Baseball Fields
The City's Park Maintenance staff currently maintains two youth baseball fields. One field
is located at Rambling River Park and a second field is located at Prameview Park. Routine
annual maintenance work on the two fields includes mowing, infield dragging, fertilization,
core aerating, top dressing, irrigating and spraying for weeds. The City also paints foul lines
to mark the fields for play. The Farmington Youth Baseball Association uses both of these
fields for play. The City also maintains 8 neighborhood ballfields some of which are used by
the Farmington Youth Baseball Association's In-House program for games and practices.
3. Picnic Shelters
The Farmington Parks and Recreation Department has thirteen picnic shelters that it
maintains. Shelters at Rambling River Park and Evergreen Knoll Park have restrooms with
running water and so staff members have more cleaning and maintenance work to perform
at these two shelters. Newer shelters that have been built in the past six years do not have
restrooms with running water. Routine maintenance performed at shelters includes removing
garbage, sweeping and washing down the concrete floors and picking up litter.
4. Soccer Fields
The City currently does not maintain any soccer fields,
5. Tennis Courts
The Farmington Parks and Recreation Department currently maintains two tennis courts at
Rambling River Park. Maintenance includes picking up litter and replacing light bulbs as
the two courts are lighted courts.
6. Lacrosse Fields
While lacrosse has emerged as a youth sport in Farmington, the City does not maintain any
lacrosse fields.
Farmington Parks and Recreation Department's Strategic Revenue Plan
9
6. Outdoor Hockey and Pleasure Skating Rinks
The City's Park Maintenance staff creates the ice surface and then maintains three outdoor
hockey rinks and six pleasure skating rinks. Maintenance for the three outdoor hockey rinks
includes painting lines prior to the initial flooding, regular flooding to maintain ice surface,
snow removal and sweeping. Maintenance of the pleasure skating rinks includes flooding
the initial base of the rink, regular flooding to maintain the skate-able surface, snow removal
and sweeping. Periodically and when there is time, staff members also will shave down the
surface of the ice in order to create a smoother skating surface.
c. Facilities
The City's Facility Maintenance Division not only maintains recreational facilities but is also
responsible for maintaining all City facilities. This means that staff makes sure that
light bulbs are changed, buildings are cleaned through a contractual service, windows are
cleaned, any broken items are repaired or placed, the water in the outdoor pool is being
properly sanitized and the ice surface at the arena is safe and in good skating condition.
Facility maintenance staff are responsible for maintaining the following recreational
facilities:
1. Outdoor Pool
The outdoor pool is located in Evergreen Knoll Park. The outdoor pool has two separate
aquatic components: a larger swimming pool with water that varies in depth from 3 feet to
13 feet and a small wading pool that is less than 2 feet in depth. Neither pool has zero depth
entrances. The larger pool features one meter and three meter diving boards, a small drop
slide, tables and chaise lounge chairs and four large shade funbrellas. The City utilizes the
outdoor pool for many programs including: swim lessons, open swim, family swim, private
rentals and special events. Each of these programs charges a fee with the type of program
driving the fee charged.
2. Schmitz-Maid Arena
The Schmitz-MaId Arena is a single sheet NHL size (85 feet wide by 200 feet long) indoor
ice rink. It has seating for 750 people and when standing room is included it is able to seat
up to 1,000 people. The City rents ice time to various user groups including but not limited
to the Farmington Youth Hockey organization, Farmington School District for the high
school boys and girl's hockey teams, senior men's hockey group and occasionally to other
communities youth hockey programs when time is available. The Parks and Recreation
Department also offers a leam-to-skate program and several open skate sessions for the
general public to access during the week. The facility includes six team rooms, a main lobby
area and a mezzanine that contains a concession stand. The City has an agreement with the
Farmington Youth Hockey organization that allows the organization to operate the
concession stand. The City provides a small sales office where tape, pucks and hockey sticks
are sold and a skate sharpening service for a fee is charged.
Farmington Parks and Recreation Department's Strategic Revenue Plan
10
3. Rambling River Center
The Rambling River Center is located at the intersection of Third and Oak Streets. The
Rambling River Center is a facility used for older adult programming and includes both
drop-in and planned programs. The Rambling River Center is also a facility that can be
rented by the public for meetings, gatherings and/or events. The building itself is quite old
and was converted from a private business use to an older adult center in 1982. A new
Rambling River Center will emerge in 2009 as the former City Hall is being remodeled into
a facility that will provide space for older adults, community rentals and in the future space
for teens. The future Rambling River Center will contain the following building spaces:
computer lab, multipurpose room, arts and crafts room, office space, meeting and classroom
space, fitness room, library and an increase in storage space. Rental of the facility can be set
up for a specific space or the entire facility can be rented out. Rental costs are currently
based on a base price for each space rented plus an hourly fee and group rates are based on
its non-profit or profit status.
4. Skate Park
A skate park was created inside an existing outdoor hockey rink. The skate park has a
limited number of ramps for participants. The ramps are three feet or less in height. No
paid supervision is provided at the skate park. It is open during the hours of 7 :00 a.m. until
sunset as no lighting is provided.
5. Warming House
The City owns, operates and maintains a warming house at the site of the two outdoor
hockey rinks and one pleasure rink in Rambling River Park. An additional warming house is
rented for the North Creek Park outdoor hockey and pleasure rinks. The warming house at
Rambling River Park has electricity, restroom facilities and can be heated in the winter. Paid
staff members supervise the warming house during the hours that it is open to the public.
The warming house is open in the winter generally from late December until mid-February
depending on weather conditions. During the summer months, the City's summer
playground program may use the warming house as a site.
Farmington Parks and Recreation Department's Strategic Revenue Plan
11
v. Pricing Services
A. Community Benefit
The City must determine what services that it wants to provide to the most people and at the
least cost to the participants. These services are generally more heavily subsidized by taxpayers
because they are of the greatest benefit to the entire community and therefore it is important to
provide the greatest amount of access to them. These services benefit the community through
increased property values and/or enhance the quality of life for all residents. The community
therefore generally pays for these services through taxes rather than fees. The services are
offered to the City's residents at little or no charge. Examples would include: trails, parks/open
space, special events, and scholarship program.
B. Individual/Organizational Benefit
Certain services.generally benefit an individual or organization more heavily than the
community because they promote the individual or organizations well-being more and the
community's well-being less. Services provided are specific to an individual or organization's
need rather than the community's need. Often it means exclusive use of a facility, park or
athletic field, which excludes the community from having access to use the facility, park or
athletic field. The individual or organization therefore generally pays for these services through
user fees or reservation fees. As the use of a facility, park or athletic field increases in
exclusivity with little or no community benefit, then it seems reasonable that little or no City
taxpayer subsidy should be given.
c. Pricing Guidelines
The Farmington Parks and Recreation Department offers many services to the community.
Table 1 below identifies pricing guidelines that the City should use when determining fees
charged for services provided either to the community, an individual or an organization
Farmington Parks and Recreation Department's Strategic Revenue Plan
12
Category Service Type of Fee Cost Recovery Rationale
Number Chan!ed Target Goal
One Rambling River Days No cost fee 0% cost recovery Community benefits as a
support, scholarship City subsidizes all whole from the service
program, outdoor skate direct, indirect and rather than an individual
park, puppet wagon administrative costs or organization. The
performances in the service is equally
community, swim bus, accessible to all
warming house, outdoor community members
hockey rinks, pleasure and the service is
skating rinks, tennis courts, primarily provided. by
trails and parks or other the public sector,
community wide interest
programs or events
sponsored by the City
Two Senior programs, picnic Partial cost fee 50% of all direct Community and
shelters, preparation of costs covered by individual and/or
athletic fields for a yonth individual and/or organizations benefit
sport organization's game or organization equally. The service is
practice and outdoor pool equally accessible to all
(City swim lessons, events community members.
and daily admissions) The service is primarily
provided by the public
sector,
Three City sponsored youth, teen Partial cost fee 100% oraIl direct Larger individual and/or
and adult programs (non- costs covered by organizational benefit
sport or non-athletic), City individual and/or but still some community
sponsored programs at the organization benefit.
Schmitz-Maid Arena,
preparation of athletic fields
for an adult sport
organization's game or
practice
Four City sponsored adult Partial cost fee 100% of direct costs Individual/organization
programs (sport or athletic), and additional 20% benefits significantly
Schmitz-Maid Arena, charge to an more than the
Rambling River Center individual and/or community.
building rentals, puppet organization to
wagon rental and outdoor cover a portion of
pool rental indirect costs
Five Exclusive use of City Market rate 100% of all direct Individual and/or
facilities, parks or athletic fee and additional organization benefits
fields and/or concessions for 100% charge to entirely and as a result
events, tournaments, or for- individual and the community receives
profit making fundraisers organization to no benefit and is
i,e. Schmitz-Maid Arena for cover indirect and prevented from having
dry floor shows administrative costs access.
Table 1. Pricing Guidelines for Parks and Recreation Department Services
Existing fees if currently under or over priced according to the categories identified in Table
1 will be adjusted gradually but by no more than 10% in anyone year.
Farmington Parks and Recreation Department's Strategic Revenue Plan
13
VI. Cost Recovery Standards
A. Background
The Farmington Parks and Recreation Department charges fees for services it provides.
However, nothing has been adopted on how much of the Department's annual expenditures
should be covered by fees and covered by tax payer support and/or other revenue sources. Table
2 shown below identifies over several years the amounts of expenditures and revenues for each
of the Department's various general and special revenue fund budgets. The table also identifies
by year the percentage of costs that were recovered by fees and the percentage of costs covered
by other means such as City tax dollars.
Recreation Schmitz- Rambling
Item Programs Parks Maid Outdoor River Center
Arena Pool
2002 Expenditures $268,084 $299,889 $256,349 $121,415 $114,620
2002 Revenues from $100,537 $0,00 $207,225 $53,681 $24,391
Fees
2002 Revenue $167,547 $299,889 $49,124 $67,734 $90,229
Shortage
% Expenses
Recovered 37.5% 0% 80.8% 44.2% 21.3%
from Fees
% Expenses not
Recovered by Fees 63.5% 100% 19.2% 55.8% 78.7%
2003 Expenditures $369,255 $334,036 $277,892 $125,066 $138,813
2003 Revenues from $122,334 $0.00 $205,821 $65,100 $25,771
Fees
,..-
2003 Revenue $246,921 $334,036 $72,071 $59,966 $113,042
Shortage
% Expenses
Recovered 33.1% 0% 74.1% 52.1% 18.6%
from Fees
% Expenses not
Recovered from 67.9% 100% 25.9% 47.9% 81.4%
Fees
2004 Expenditures $383,094 $325,928 $295,757 $133,667 $146,757
2004 Revenues from $129,030 $5,225 $208,714 $54,571 $34,567
Fees
2004 Revenue $254,064 $320,703 $87,043 $79,096 $112,190
Shortage .,
% Expenses
Recovered 33.7% 2% 70.6% 40.9% 24%
from Fees
% Expenses not
Recovered from 66.3% 98% 29.4% 59.1% 76%
Fees
Table 2. Park and Recreation Department Expenses, Revenues and Cost Recovery by Division
Farmington Parks and Recreation Department's Strategic Revenue Plan
14
2005 $383,647 $384,401 $295,084 $102,772 $141,005
Expenditures
2005 Revenues $118,500 $7,550 $237,523 $60,365 $29,049
from Fees
2005 Revenue $265,147 $376,851 $57,561 $42,407 $111,956
Shortage
% Expenses
Recovered 30.8% 2% 80.5% 58.7% 20.6%
from Fees
% Expenses not 69.2% 98% 19.5% 41.3% 79.4%
Recovered from
Fees
2006 $405,567 $449,404 $338,267 $106,471 $144,520
Expenditures
2006 Revenues $115,381 $4,697 $250,372 $65,149 $29,588
from Fees
2006 Revenue $290,186 $444,707 $87,895 $41,322 $114,932
Shortage
% Expenses
Recovered 28.4% 1% 74% 61.2% 20.5%
from Fees
% Expenses not 71.6% 99% 26% 38.8% 79.5%
Recovered from
Fees
2007 $452,599 $521,911 $261,329 $127,642 $156,253
Expenditures
2007 Revenues $135,844 $6,543 $257,934 $62,537 $35,741
from Fees
2007 Revenue $316,755 $515,368 $3,395 $65,105 $120,512
Shortage
% Expenses 30% 1% 98.7% 49% 22.9%
Recovered from
Fees
% Expenses not 70% 99% 1.3% 51% 77.1%
Recovered from
Fees
Table 2. Park and Recreation Department Expenses, Revenues and Cost Recovery by Division
B. Cost Recovery Guidelines
It is important to remember that these cost recovery standards are meant to provide broad budget
guidance to Parks and Recreation Department staff when determining the amount of revenue that
should be generated from fees charged for services that the Department provides. Table 3 below
shows a percentage of costs that should be recovered through fees and charges in each division of
the Parks and Recreation Department. These percentages are based on the general averages taken
from Table 2.
Farmington Parks and Recreation Department's Strategic Revenue Plan
15
Recreation Schmitz- Rambling
ProlUams Parks Maki Arena Outdoor Pool River Center
Cost
Recovery
Target from 33% 5% 75% 50% 25%
Fees
Table 3. Park and Recreation Department Cost Recovery Standards by Division
c. Strategic Revenue Plan Implementation and Review
Once the Strategic Revenue Plan has been approved by the City Council, it shall be
reviewed annually in conjunction with the Fee Ordinance. The strategic plan may be
amended but the following sequence should be used to do so:
1. Staff drafts amendments to the Strategic Revenue Plan and then distributes draft
amendments to the Park and Recreation Advisory Commission for review.
2. The Park and Recreation Advisory Commission reviews the draft amendments, makes
any further amendments to the Strategic Revenue Plan and then recommends approval to the
City Council.
3. The City Council reviews the draft amendments and either approves or does not approve
the Strategic Revenue Plan amendments.
Farmington Parks and Recreation Department's Strategic Revenue Plan
16
APPENDIX
Farmington Parks and Recreation Department's Strategic Revenue Plan 17
Pricing Worksheet for Category One Service
Includes: Rambling River Days support, scholarship program, outdoor skate park, puppet wagon
performances in the community, swim bus, warming house, outdoor hockey rinks, pleasure skating
rinks, tennis courts, trails and parks or other community wide interest programs or events sponsored
by the City
Target Goal: 0% cost recovery, City subsidizes all costs.
Program Name: Season & Year:
I. Direct Costs:
A. Program Staffing Costs (employee or contractual)
hrs/wk x _ wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
SUBTOTAL $
B. Supplies/Equipment Costs
quantity and description x $ per item $
quantity and description x $ per item $
SUBTOTAL $
C. Facility Costs
$ brx hrsx weeks $
. SUBTOTAL $
D. TransportationlEquipment Rental Costs
$
rental fee x
#of vehicles/equipment rented SUBTOTAL $
E. Total Direct Costs (A + B + C +D)
TOTAL $
n. Indirect Cost
A. Administrative Staffing Charge
total direct costs (D) x 100% administrative charge
TOTAL $
ID. Fee:
No fee charged for service.
Farmington Parks and Recreation Department's Strategic Revenue Plan 18
Pricing Worksheet for Category Two Service
Includes: senior programs, picnic shelters, preparation of athletic fields for a youth sport
organization's game or practice and outdoor pool (City swim lessons, events and daily admissions)
Target Goal: 50% of direct costs covered by individual and/or organization
Program Name: Season & Year:
I. Direct Costs:
A. Program Staffing Costs (employee or contractual)
hrs/wkx_ wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
SUBTOTAL $
B. Supplies/Equipment Costs
quantity and description x $ per item $
quantity and description x $ per item $
SUBTOTAL $
C. Facility Costs
$ hrx hrsx weeks $
SUBTOTAL $
D. Transportation/Equipment Rental Costs
$
rental fee x
#of vehicles/equipment rented SUBTOTAL $
E. Total Direct Costs (A. + B + C +D)
TOTAL $
n. Fee
$ total direct costs x .50 cost recovery divided by _min # participants =
$ fee per participant (rounded up to nearest half dollar or full dollar)
Farmington Parks and Recreation Department's Strategic Revenue Plan
19
Pricing Worksheet for Category Three Service
Includes: City sponsored youth, teen and adult programs (non-sport or non-athletic), City sponsored
programs at the Schmitz-Maid Arena, preparation of athletic fields for an adult sport organization's
game or practice
Target Goal: 100% of direct costs covered by individual and/or organization
Program Name: Season & Year:
Direct Costs:
A. Program Staffing Costs (employee or contractual)
hrs/wk x _ wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
SUBTOTAL $
B. Supplies/Equipment Costs
quantity and description x $
per item
$
$
quantity and description x $
per item
SUBTOTAL $
C. Facility Costs
$
hrx
hrsx
weeks
$
SUBTOTAL $
D. TransportationlEquipment Rental Costs
$
rental fee x
#ofvehicles/equipment rented SUBTOTAL $
E. Total Direct Costs fA + B + C +D)
TOTAL $
ll. Fee
$ total all direct costs divided by _ min# participants =
$ fee per participant (rounded up to nearest half dollar or full dollar)
Farmington Parks and Recreation Department's Strategic Revenue Plan
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Pricing Worksheet for Category Four Service
Includes: City sponsored adult programs (sport or athletic), Schmitz-Maki Arena, Rambling River
Center building rentals, puppet wagon rental and outdoor pool rental
Target Goal: 100% of direct costs and 20% indirect cost administrative charge covered by individual
and/or organization.
Program Name: Season & Year:
I. Direct Costs:
A. Program Staffing Costs (employee or contractual)
hrs/wk x _ wk(s) x # of stafIx $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of stafIx $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
quantity and description x $
SUBTOTAL $
per item $
per item $
SUBTOTAL $
weeks $
SUBTOTAL $
B. Supplies/Equipment Costs
quantity and description x $
C. Facility Costs
$
hrx
hrsx
D. TransportationlEquipment Rental Costs
$
rental fee x
#ofvehicles/equipment rented SUBTOTAL $
E. Total Direct Costs (A + B + C +D)
TOTAL $
n. Indirect Cost
A. Administrative Staffing Charge
total direct costs (D) x 20% administrative charge
TOTAL $
m. Fee
$
(total all direct costs) + $
(20% indirect cost administrative charge) divided by
min # participants/teams =
$ fee per participant/team (rounded up to nearest full dollar)
Farmington Parks and Recreation Department's Strategic Revenue Plan 21
Pricing Worksheet for Category Five Service
Includes: Exclusive use of City facilities, parks or athletic fields and/or concessions for events,
tournaments, or for-profit making fundraisers i.e. Schmitz-Maki Arena for dry floor shows
Target Goal: 100% of direct costs and 100% of indirect cost administrative charge covered by
individual and/or organization.
Program Name: Season & Year:
I. Direct Costs:
A. Program Staffing Costs (employee or contractual)
hrs/wkx_ wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
hrs/wk x wk(s) x # of staff x $ hr. $
SUBTOTAL $
per item $
per item $
SUBTOTAL $
weeks $
SUBTOTAL $
B, Supplies/Equipment Costs
quantity and description x $
quantity and description x $
C Facility Costs
$
hrx
hrsx
D. TransportationlEquipment Rental Costs
$
rental fee x
#ofvehicles/equipment rented SUBTOTAL $
E. Total Direct Costs (A + B + C +D)
TOTAL $
ll. Indirect Cost
A. Administrative Staffing Charge
total direct costs (D) x 100% administrative charge
TOTAL $
ID. Fee
$
(total all direct costs) + $
(total indirect cost administrative charge) =
$
total fee (rounded up to nearest dollar)
Farmington Parks and Recreation Department's Strategic Revenue Plan
22
Farmington Parks and Recreation Department's
Youth Scholarship Application Form
Please complete all information. We reserve the right to verify all information contained on this form.
Applicant's name: Date:
Address: City:
Home phone: Work phone:
including parent(s), living in household:
receiving scholarship funds:
Zip:
List number of family members,
List children's names and ages who would be
What classes or programs would you like to register for:
What is the total cost of the classes or programs that you are registering for? $
How much of the total cost are you able to pay? $
What is the total amount of scholarship funding that you are requesting? $
Applicants requesting scholarship funding must meet certain income limits. All applicants must show proof
of income by providing one of the following documents:
D Most recent monthly AFDC or TANF payment stub
D A verification letter from a public or private school that states that the applicant qualifies for
the Federal Government's Free or Reduced Hot Lunch Program
D A verification letter from the Dakota County Family Services Department that states the
applicant qualifies for scholarship funding based on income limits found on the next page.
D The most recent copy of the family's Federal Income Tax Form.
NOTICE: This scholarship funding is non-accumulative and cannot be carried from year to year. The
application period is during the calendar year. A new form must be completed each year in order to verify
that the applicant meets the current year income guidelines for the scholarship program. Scholarship funding
may not be available for all classes or programs. Please allow a period of at least two (2) business days to
determine scholarship eligibility
Acknowledgement of Correct Information:
I acknowledge that the information contained on this application is accurate and correct. I hereby give
permission to the Farmington Parks and Recreation Department to verify this information. I understand that
if any information on this application form is found to be incorrect, my privileges of applying for scholarship
funding could be revoked.
Signature of Applicant:
******************************************************************************
FOR OFFICE USE ONLY, APPLICANT DO NOT COMPLETE
Date and initials of staff person receiving application:
Request is: _Approved _Denied
coverage
_100% coverage
60%
Signature of Parks and Recreation Director or Designee
Date
Farmington Parks and Recreation Department's Strategic Revenue Plan
23
Farmimrton Parks & Recreation DeDariment's Youth ScholarshiD Proirram Guidelineg
1. Scholarships are given to youth 17 years and younger.
2. Scholarships can be used fot all lessons, programs and activities offered by Farmington Parks &
Recreation that require pre-registration. Scholarships will not cover daily admission fees to facilities.
3. Maximum amount given per calendar year will be $IOO/child.
4. Applicants must be residents living within the boundaries ofISD #192.
5. Applications must be completed and received in the Parks & Recreation Department Office located at
325 Oak Street, Farmington, MN.
6. All application and fmancial information provided are considered private data on individuals and is
subject to privacy of information provisions, pursuant to State Statute.
7. Farmington Parks & Recreation staff reserves the right to verify all information contained on the
application form in order to grant, deny or revoke any scholarship monies.
8. Applicants will be notified either in person, by mail or phone as to the outcome of their scholarship
request in a timely manner.
9. If approved the scholarship form must accompany the completed program registration along with
payment of remaining program fees or tuition vouchers from County or State financial aid programs.
10.Failure to attend an activity or program that has been paid through the scholarship program may
jeopardize future scholarship funding for the family.
11. Families eligible for the reduced hot lunch program income guidelines are eligible to have 60% of
their costs covered by the scholarship program.
12. Persons applying for scholarship funding must meet certain income limits to qualify for scholarship
funding. Applicant must show proof of income by attaching one of the following to the scholarship
application:
a. Most recent monthly AFDC or TANF payment stub.
b. Verification letter from a public or private school indicating the applicant qualifies for USDA
Free or Reduced Hot Lunch Program
c. Verification letter from the State of Minnesota or Dakota County Family Services Department or
another County (i.e. Hennepin, etc.) Family Services Department stating the applicant qualifies
for scholarship funding based on USDA Free or Reduced Hot Lunch Program income limits.
(See attached sheet for specific government programs in which enrolled participants would be
eligible to receive scholarship awards and to review current income limits.)
d. The most recent copy of the family's Federal Income Tax Form.
13. Income guidelines are based on the United States Department of Agriculture (USDA) Free and
Reduced Hot Lunch Program. The income guidelines for 2003-2004 are as follows:
Household Size Free MealsYearlv Income Reduced Meals Yearly Income
1 $11,518 $16,391
2 $15,522 $22,089
3 $19,526 $27,787
4 $23,530 $33,485
5 $27,534 $39,183
6 $31,538 $44,881
7 $35,542 $50,579
8 $39,546 $56,277
each additional family member add $ 4,004 $ 5,698
14. From time to time families may encounter some unforeseen and unfortunate circumstances, emotionally
or fmancially, that may cause disruption and discord in the family. During these times this program may
provide some scholarship assistance to assist the family. If you feel you are in need of scholarship
assistance and do not meet the income guidelines please attach a letter stating your circumstances. Special
circumstances will be handled on an individual basis.
15.Scholarships will be granted only iffunds are available. Questions about the Scholarship Program
should be directed to the Farmington Parks & Recreation office, 651/463-1850.
Farmington Parks and Recreation Department's Strategic Revenue Plan
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Farmington Parks and Recreation Department's Strategic Revenue Plan
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