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Page 1 of 5 <br />Item #5 <br /> <br />PARKS AND RECREATION <br />COMMISSION AGENDA REPORT <br /> <br /> <br />May 8, 2025 <br />Library and Recreation <br /> <br />TITLE: RECOMMEND CITY COUNCIL ADOPT A RESOLUTION UPDATING THE <br />MASTER FEE SCHEDULE SECTION VIII. RECREATION <br /> <br />SUMMARY <br />City staff recommends updating the Master Fee Schedule (MFS) and Fee Policy to a revised <br />cost recovery model, better aligning program fees with service purpose and community benefit. <br />The revised model introduces new service categories, establishes clear General Fund subsidy <br />thresholds, and provides a framework for long-term fiscal sustainability. <br /> <br />RECOMMENDATION <br />Recommend City Council adopt a resolution updating the Master Fee Schedule Section VIII. <br />Recreation. <br /> <br />BACKGROUND <br />In June 2022, City Council adopted a resolution to update the MFS VIII. Recreation <br />(Attachment 1). This update authorized staff to set fees for programs, classes, services, and <br />facility rentals based on actual costs to deliver programs and services, with cost recovery <br />guidelines. <br /> <br />The current MFS Section VIII. Recreation is based on a cost recovery model that includes 13 <br />recreation categories. Each category falls into a specific cost recovery tier, determined by the <br />level of community benefit it provides. Generally, the greater the community benefit, the lower <br />the expected cost recovery, and, consequently, the higher the subsidy from the General Fund. <br /> <br />Over the past three years, staff have undertaken a strategic, department-wide application of <br />the model. All recreation offerings were reviewed and categorized according to their public <br />versus individual benefit level. Fees have been adjusted incrementally to progress toward <br />target recovery levels while remaining mindful of regional market conditions and community <br />accessibility. Program design, staffing structures, and scheduling practices have been refined <br />to improve operational efficiency and reduce costs where possible. Additionally, the model has <br />guided the development of new programs and services, ensuring that fees reflect the intended <br />level of benefit from inception. <br /> <br />In Fall 2024, Library and Recreation staff reviewed the existing cost recovery targets alongside <br />actual results from Fiscal Year (FY) 2023/24 to assess whether the existing cost recovery <br />goals were being met. Staff found that most programs were within their cost recovery target <br />overall. In cases where a program or class did not meet cost recovery goals, staff reviewed the <br />offerings to identify opportunities for cost savings or revenue growth. Staff will re-evaluate <br />these programs at the conclusion of FY 2024/25. In some instances, staff concluded that cost <br />recovery was not feasible and discontinued the program. <br /> <br />Page 13 of 29