052825 PARKS AND RECREATION COMMISSION AGENDA PACKET

Page 4 of 5 Facility Use Fee A facility use fee allows for the purchase of replacement items associated with the use of facilities over time, such as sound systems, projectors, tables, and chairs. The facility use fee is only charged on programs offered in City facilities. The fee is small, at 2% of the program fee. For example, a $50 registration fee would incur a $1 facility use fee. Non-Resident Fee Staff recommends increasing non-resident fees for recreation programs, from 10% to 25%. This adjustment aligns with practices in many other cities. The City of Dublin charges a 20% non-resident rate, San Ramon 25%, Danville 20%, and LARPD 10%. The City of Pleasanton subsidizes many of its recreation programs through the General Fund, which is supported primarily by property taxes paid by Pleasanton residents. Since non- residents do not contribute to the City’s General Fund through property taxes, the increased fee helps ensure they pay an equitable share of the costs associated with the programs and services they use. This change will help the City maintain the financial sustainability of its recreational offerings while prioritizing access for residents. Late Payment Fees Payment plans may be offered to participants enrolled in certain high-cost programs. Failure to submit payment by the designated due date may result in an assessment of late fees. Cost Recovery Implementation & Evaluation To implement the updated cost recovery model, staff will utilize a phased and data-informed approach to integrate the new service categories and corresponding subsidy thresholds into day-to-day operations. Staff will thoroughly analyze each program's current subsidy level and revenue performance to determine its alignment with the newly defined subsidy targets. Where discrepancies exist, adjustments will be made by refining the program structure, increasing operational efficiencies, or adjusting fees to meet the intended subsidy level. Staff will also develop a routine evaluation system and set of metrics for all program revenues and expenditures to support decision-making and provide clarity. EQUITY AND SUSTAINABILITY Updating the categories within the Master Fee Schedule Section VIII. Recreation and balancing fees paid for service with General Fund investment allows staff to continue providing high-quality programs and services equitably and responsibly. OUTREACH No outreach has been done in advance of this item. STRATEGIC PLAN ALIGNMENT This recommendation aligns with the ONE Pleasanton Strategic Plan Goal, Funding Our Future: Fiscal Sustainability. Support financial health and sound fiscal policies through long- term planning, cost recovery, increased revenue, and cost containment. Page 16 of 29