HomeMy WebLinkAboutCOW 2022-08-22 Item 4B - Discussion - Parks and Recreation Revenue Recovery and FeesITEM INFORMATION
STAFF SPONSOR: PETER MAYER ORIGINAL AGENDA DATE: 8/22/22
AGENDA ITEM TITLE Framework for Parks and Recreation Revenue Recovery and Fees
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 8/22/22 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW
SPONSOR’S
SUMMARY Briefing on the considerations and framework informing parks and recreation program and
rental fees and cost recovery targets.
REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev.
LTAC Arts Comm. Parks Comm. Planning Comm.
DATE: COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $ Fund Source:
Comments: Discussion only
MTG. DATE RECORD OF COUNCIL ACTION
8/22/22 Committee of the Whole
MTG. DATE ATTACHMENTS
8/22/22 Slidedeck - PPT presentation
C OUNCIL AGENDA S YNOPSIS
----------------------------------Initials --------------------------------- I TEM N O.
Meeting Date Prepared by Mayor’s review Council review
8/22/22 PMM 4.B.
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Tukwila Parks & Recreation: Cost Recovery & Meeting Community Needs
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The mission of the Tukwila Parks and Recreation Department (TPR) is to enhance the quality of life for
residents, businesses and visitors through a quality system of public spaces, programs and events that
enhance and promote opportunities for health and fitness, personal growth, relaxation, community
connection, civic engagement, and environmental stewardship. Our slogan is: “good, healthy, fun”.
The mission of the Tukwila Parks and Recreation
Department (TPR) is to enhance the quality of life for
residents, businesses and visitors through a quality
system of public spaces, programs and events that
enhance and promote opportunities for health and
fitness, personal growth, relaxation, community
connection, civic engagement, and environmental
stewardship.
The Parks & Recreation Department is composed of multiple programs, services and
divisions. Major units include Administration, Parks, Recreation and Golf.
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About Recreation
Tonight’s focus is on Recreation and the fees and
cost recovery associated with its programs, rentals
and services.
* includes American Rescue Plan Act allocation
# includes reimbursement grants not yet received
Actuals
Expense Revenue % Recov
2019 $ 2,796,118 $ 992,971 35.5%
2021 $ 1,772,970 $ 394,720 22%*
Budget YTD Rev
2022 $ 2,521,195 $ 785,600 31%*#
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What Informs Our Decision -making
Parks & Recreation collects a variety of fees and charges for the services it
provides. Decisions regarding programming, facility rentals, cost recovery and
fee setting are guided by :
•Tukwila City Council
•Tukwila Municipal Code
•City of Tukwila Financial Policies
•Parks and Recreation Department Operating Policies and Procedures
•Cost Benefit Policy
•2020 Parks, Recreation and Open Space Plan
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Reflecting On Who & How We Serve
From the COVID-19 pandemic, to our national
reckoning on race and equity, to economic
instability, Parks & Recreation has assessed how
and who we serve.
PROS Plan-Community Feedback
•Some users find it challenging to access TCC -
particularly if relying on transit
•Cost cited as a barrier-recommendation to
expand affordable and/or free programming to
better meet the needs/interests of
participants of all ages & and communities of
color
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Reflecting On Who & How We Serve
“Summer Experiences & Enrichment for Kids” (SEEK)
program grant allowed Parks & Recreation to primarily
serve Tukwila residents for the first time. Our residents
had reported that, though discounted for Tukwila
residents, many of our programs in a typical year are still
out of reach.
Camp Tukwilly 2018 2022
Tukwila Residents 30 60
Total Participants 120 60
% Residents 25%100%
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Who benefits from the service -the community in general or only the individual or group receiving the
service? • Does the individual or group receiving the service generate the need (and therefore the cost) of
providing the service? • Will imposing the full cost fee pose a hardship on specific users? • Will the level
of the fee affect the demand for the service? • Are there competing providers of the service in the public
or private sector?
Considerations When Discussing Cost Recovery
•Who benefits from the service?
•Does the individual or group
receiving the service generate the
need (and therefore the cost) of
providing the service?
•Will imposing the full cost fee pose a
hardship on specific users?
•Will the level of the fee affect the
demand for the service?
•Are there competing providers of the
service in the public or private
sector?
•What cost components to include in
factoring recovery targets?
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Cost Recovery Philosophy and Goals
From 2020 PROS Plan:
“Cost recovery is a choice made by the
community (through decision makers such as
Tukwila’s City Council) about how to best use the
resources available. Charging for some (or all)
of the cost to provide a service can allow the City
to offer more programming, support free or low-
cost programs, or offset the cost for members of
the community who have fewer resources or
face other barriers. This set of decisions is
guided by an investment philosophy, defining
why the community invests in recreation”.
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Tukwila Community Center Utilization
•Significant majority of Tukwila Community
Center’s utilization hours are associated
with recreation programs and activities
•5 year average
•13,894 Program Hours
•2,856 Rental Hours
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Revenue Snapshot
•Major revenue drop between 2019
and 2020-over 75% reduction
•Throughout the pandemic, Parks
and Recreation provided limited
but high demand programs and
activities to meet reduced budget
levels.
•Building back revenues with greater
emphasis and reliance on grants and
philanthropic support-approximately
78% of 2022 revenues are from grants
and American Rescue Plan Act (ARPA)
funds
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PROS Plan and Staff Recommendation
To conduct a cost recovery and resource allocation study in the 2023 -24 biennium:
•to articulate and illustrate a comprehensive resource allocation philosophy
and cost recovery fiscal policy
•to ensure a sustainable system into the future by using tax revenues and
fees in the most appropriate ways
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Informing Our Direction:
How do we best serve our community in the next Biennium and beyond?
EQUITY FOCUSED REVENUE FOCUSED HYBRID
Primarily Community Benefit Primarily Individual Benefit Combination Individual/Community
Benefit
SERVICE APPROACH & TYPE Greater proportion of Free/Low -
cost Programs and Services and
Reduced Cost Social Core
Programs. Fewer facility rentals
Greater proportion of desirable programs,
specialized activities and business core
programs offered at market
rate.Increased rentals and events,
particularly for non-residents;
A blend of Free/Low -Cost programs and
services, activities that require subsidy and
specialized activities offered at market
rate. A mix of rentals and events with
greater proportion focused on residents
PURPOSE Services to vulnerable and
underserved populations to
enhance quality of life and
provide socialization and
activities that enhance health,
safety and livability
Generate revenue and meet the desires of
those that can pay for most services and
events based on demand.
Provide needed and desired services to
Tukwila residents while still enabling
revenue generation through rentals
COST RECOVERY RANGE 0% -25%50% -75%25% -50%
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Seeking Guidance from our Leaders
Questions for the Tukwila City Council to consider:
1.How might we increase recreation access and utilization by
Tukwila residents while also generating revenue (rentals;
program fees; grants; donations and other sources) to help
offset costs?
2.What other factors do you want staff to consider in developing
and implementing programs and facilitating TCC room rentals?’’
3.Difficult decisions need to be made due to the difficult budget
situation we find ourselves in. What are your top priorities for
Parks & Recreation?
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