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HomeMy WebLinkAbout1990-132-09/04/1990-CULTURAL LIBRARY RECREATION FEE POLICY RECREATIONAL SERVICES RESOLUTION 90-132 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING A NEW RECREATION FEE POLICY FOR THE RECREATION DIVISION OF CULTURAL, LIBRARY AND RECREATIONAL SERVICES OF THE CITY OF FORT COLLINS WHEREAS, pursuant to Resolution 80-131 passed on October 21, 1980, the City Council adopted a Fees and Charges Policy for the Department of Parks and Recreation of the City of Fort Collins; and WHEREAS, at direction of City Council , City staff has reviewed the current Fees and Charges Policy in order to revise it to provide for a more equitable distribution of the payment of recreational program costs by program users and the General Fund; and WHEREAS, City staff has drafted a new recreation fee policy, a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference (hereinafter "the Recreation Fee Policy") ; and WHEREAS, City Council finds that the Recreation Fee Policy provides for a more equitable distribution of the costs of recreational programs between program users and the General Fund and, therefore, desires to rescind the current Fees and Charges Policy adopted in 1980 and replace it with the Recreation Fee Policy. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the current Fees and Charges Policy adopted by City Council on October 21, 1980, pursuant to Resolution 80-131, is hereby rescinded and in its place City Council hereby adopts the Recreation Fee Policy attached hereto as Exhibit "A" . Passed and adopted at a regular meeting of the City Council held this 4th day of September, A.D. 1990. Mayor ATTEST: NNE City Clerk EXHIBIT A CITY OF FORT COLLINS CULTURAL, LIBRARY, AND RECREATIONAL SERVICES RECREATION DIVISION RECREATION FEE POLICY I. PURPOSE OF THE RECREATION DIVISION The purpose of the Recreation Division is to enrich the quality of life of all persons in the community by: A. Providing and promoting recreational , educational , and leisure activities; B. Advocating for health, well -being, and personal growth; and C. Facilitating the efforts of service providers in the community who share similar interests. II . STRUCTURE OF THE RECREATION FUND The Recreation Fund is divided into two portions: 1) a Program Portion that is supported by user fees and charges; and 2) a Community Good Portion that is supported by the General Fund. A. Program Portion -- Supported by Fees and Charges 1. This portion is made up of those costs directly associated with the recreation activities and facilities used by the citizens. 2. These are the costs of providing an activity or maintaining a facility that are a part of the users' direct experience. 3. Fees charged will not exceed the cost of the specific activity in which the person is participating. 4. It is not feasible in some programs to charge enough to cover the cost of participation. These are generally programs designed for special populations. The General Fund will cover the deficit in programs that cannot recover all their costs through fees. 5. Services associated with these costs include leagues; class instruction; drop-in activities at the pools, ice arena, gymnasium, and Farm; trips and tours; special events; concession operations; and facility and equipment rentals. Page 2 6. These costs include the following: a. Activity costs: 1) Part-time staff-- cashiers, guards, officials, teachers, supervisors, custodians. 2) Materials-- scoresheets, crafts supplies, food, handbooks, publicity fliers, t-shirts, table settings. 3) Equipment-- balls, bats, football uniforms, tape recorders. 4) Participant transportation. 5) Any other costs directly associated with conducting activities. b. Facility Costs: 1) Minor repairs-- pumps, boilers, filters, chillers, carpet, windows, touch-up painting, keys, door hinges, maintenance contracts on equipment. 2) Custodial equipment and supplies. 3) Building utilities-- gas, electricity, storm water. 4) Specialized items-- pool chemicals, freon, tools, light bulbs, plumbing and machine parts. 5) Telephone costs associated with activities and facility use. 6) Any other costs directly associated with operating the buildings. 7. This portion of the fund is under the same guidelines as a special revenue fund, with the ability to retain a fund balance. B. Community Good Portion -- Supported by the General Fund 1 . The General Fund will cover the deficit in programs that cannot recover all their costs through fees. 2. The General Fund will also cover costs associated with the centralized management of the recreation division, not including the costs of activities and facilities. These costs are usually not experienced directly by the users. 3. Services associated with community good costs include division management, planning, budget development and coordination, policy coordination and implementation, public relations, staff recruitment and management (ie. , supervision, training, evaluation, etc. ) , information and referral , response to citizen concerns and ideas, and the financial support of those unable to afford full fees for programs. Page 3 4. These costs include salaries and benefits for all full-time recreation staff, computer costs, telephone charges associated with office operation, training costs, dues and subscriptions, insurances, and office supplies and equipment. 5. This portion is under the same guidelines as all other General Fund budgets. III. REVENUE DISTRIBUTION A. Revenue support from the General Fund will be allocated to cover the Community Good portion of the fund's costs. B. The General Fund will be responsible for setting up an operating reserve, phased in over a four-year period. Once established, this reserve will be maintained year to year by the excess fund balance in the Program Portion of the fund. C. The General Fund will also support a reserve set aside to pay fees for those unable to afford full fees for programs. D. Fees and charges will not exceed the cost of the specific activities in which the person is participating. E. Excess fund balance will accumulate if program participation exceeds projections or if savings occur in expenditures for programs or facility operation. F. Excess revenue from fees and charges will be held in reserve in the Recreation Fund. IV. RESERVES A. Scholarship Reserve A scholarship reserve shall be established to pay fees for participants who are unable to afford full fees for programs. The target of this reserve shall be 3% of the Program Portion of the fund. This reserve shall be supported by the General Fund each year and phased in over four years. B. Operating Reserve The Recreation Fund will maintain an operating reserve of 7% of the Program Portion of the Fund, excluding one-time capital items and lease-purchase payments. This reserve will not be used unless revenues in a given year cannot support expenses. This reserve will be established initially by the General Fund and maintained on an ongoing basis by excess fund balance in the Program Portion of the fund. Page 4 C. Excess Fund Balance Any excess fund balance will be distributed within the following priorities: 1. Maintain the operating reserves. 2. Equipment and Repair needs: used for improvements and upkeep of facility infrastructure and equipment over what is budgeted. 3. Capital needs: used for purchase of one-time expenditures over what is budgeted to maintain safety and improve service delivery. 4. New Program needs: used for the start-up of new or the expansion of existing activities and services which require additional investments. V. IMPLEMENTATION PLAN FOR THIS POLICY The goal is to fully implement this policy by 1995. Based on available General Fund revenues, the funding balance required by this policy between user fees and charges and General Fund tax support may be implemented in equal increments each year, beginning in 1991 and ending in 1995.