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Memo Recreation Department BudgetingTO: Honorable Mayors and City Council Members THROUGH: City Managers, James Miller and Steven Mielke FROM: Joint Recreation Board f BY: Richard Wilson, Recreation Director 1' SUBJECT: Recreation Department - " Rebudgeting For 1991" DATE: February 6,1991 • • The Joint Recreation Board submits a "rebudgeting for 1991 ", consisting of some adjustments in recreation programs (and costs) but mainly an increase in many of the user fees associated with the recreation department. During the month of December 1990, several directives and proposals were received and discussed, that will effect the 1991 budget for recreation. Those that need an immediate response are as follows: 1. The Recreation Board desires that Shady Oak Beach remain open an additional 15 days in 1991. This is estimated to cost $8,060. 2. The Minnetonka City Council has directed that users fees be increased $50,000 annually. Because of the joint powers contractual arrangement between Minnetonka and Hopkins, providing for a division of two- thirds, one -third of financial arrangements, it is interpreted that the fees will need to be increased by $75,000 to benefit Minnetonka $50,000. 3. The City of Hopkins requires a contingency plan to preserve some of the tax budget, for a possible decision in June or July 1991, to reduce spending. 4. The City of Minnetonka requires a contingency plan to preserve up to 10% of the tax budget, for a possible decision in June or July 1991, to reduce spending. This amounts to $18,700. Staff and Board have attempted to address all of these issues in one study and recommendation. It consists mainly of increasing fees for existing services, but also includes some cost reductions and reduction in services. The attached report provides a brief description of the forecasted impact if these proposals are implemented, delineated by the City the adjustment will benefit. The significant changes proposed are: 1. Family Gardens: There will be a fee for every reservation. It will be $10.00. 2. Senior Citizens: - No free gardens. - No free beach permits. -Add $1 to each trip. 3. Shady Oak: - No free permits to group homes. - No reduced cost to Latch Key programs. - Increased all fees, family, daily admission and daily parking. - Extend the program fifteen days, to Labor Day. • • Memorandum "Rebudgeting For 1991" February 6, 1991 Page 2 4. Picnic Reservations: - Institute an application fee of $25 per picnic. -If over 100 people are anticipated the fee will be $50. -Fall special services at Burnes, might still be an additional $10 per hours. 5. Big Willow #4 - Scheduling service will increase per game from $10 or $15, an additional $10 per game. 6. Classes and Activities - There will be a variety of increases, ranging from .25, .50, $2.50, $5, $7, $10, etc. 7. Adult Sports Teams - Team fees will increase $25, $50, $75. 8. Initiate selling advertisement in the quarterly brochure. 9. Hopkins School District ball field reservations - to be discontinued. 10. Warminghouses - Close at 9:00 p.m., six nights weekly and at 6:00 p.m. Sundays. 11. Playground programs - discontinue selected portions. 12. Some programs, such as summer playgrounds, ice rink warminghouses, and Cops and Kids will be services without a user fee. There are several approaches to establishing fees and fee structures. They include basing charges on a traditional experience, based on actual costs, costs- plus, prevailing rates (including comparisons with other agencies, what the public will pay, etc.) This report is not restricted to any one approach. The proposed adjustments for Hopkins actually exceed the amount technically required. However, that is necessary because there is an assumption that some former participants in the recreation program will not continue. The estimates for increased revenue is based on 1990 activity registration, and does not necessarily reflect the public's reaction to increased fees. A ten or twenty percent decrease in enrollment /participation will significantly dilute increased fee revenues. Increased fees might also negatively affect the requests for scholarship assistance. That extent is unknown. The proposed adjustments for Minnetonka barely satisfy the increased needs. However, rather than to over react now, it is intended to reevaluate the status in June, or when /if the State reduces funding to cities. If additional need of fees, or reductions, are identified at that time, changes can be implemented. • Memorandum "Rebudgeting For 1991" February 6, 1991 Page 3 The new available funds needed are: Increased Fees Shady Oak Operation Hopkins Contingency Total: Minnetonka $50,000 $ 5,350 $55,350 *(1) Total funding made available: $55,150 Hopkins $2,650 $6,000 $8,650 $29,510 Free beach permits for senior citizens, group homes and school district latchkey programs are proposed to be discontinued. "Residency" status currently given to outside members of the three local school districts if they purchase beach permits, is proposed to be withdrawn. Many future user fees will be increased a proportionate amount of the seasonal increased cost of providing specific activities. This includes increased costs for game officials, instructional costs, supplies, etc. The Recreation Department will reduce its involvement in "field reservation" for Hopkins School District property. The department will restrict its involvement to requesting specific usage by the department. This will accomplish the following: III A. The Minnetonka School District is the sole scheduler of their school facilities. The Recreation Department is a facility user. The change will aid the department in being consistent. S. The Hopkins School District facility use procedures have recently reduced the discretionary role of the Recreation Department. In many cases, the District now instructs the Recreation Department as to who will get usage. C. The Hopkins School District has a system for centralized scheduling of their facilities. D. It is fair that the Recreation Department consider charging a fee for its services of scheduling /reserving ballfields. This will be difficult to do with youth leagues, etc. Therefore, it is best to reduce the involvement. The Recreation Department will continue to reserve City facilities, such as ballfields and ice rinks, for groups and associations, at no cost. The Recreation Department will strive to be cost effective in providing services to the public, such as reducing mailings, including the cost of preparing documents, the materials, duplication, etc., and postage. This must be off set with the attempt to maintain a quality program. 0 *(1) Unknown at this time is if the Minnetonka contingency of $18,770 will be necessary. • • • Memorandum "Rebudgeting For 1991" February 6, 1991 Page 4 Finally, adoption of the rebudgeting and new fee structure is not an exercise that will be completed in 1991. In addition to potential miscalculations in the public's interest, there is the factual realization that not all changes can be performed in 1991. The winter activities of adult sports, exercise classes, swim Classes, etc. were already advertised or underway when the department was directed to increase fees. Therefore the direct increase must be accumulated in less than a twelve month period. The recreation staff and Joint Recreation Board members are not completely in agreement to all parts of this proposal. Some recommendations are arbitrary and some contrary to certain individual's philosophy. However, these adjustments, or something similar, must be adopted to meet the goals of the cities. These financial changes must be monitored. This will require a renewed effort to record /document /trace expenses and receipts. RLW:lmb PROGRAM DESCRIPTION 1990 "PROFIT• REGISTRATION 1991 ADDITIONAL CHARGE MADE INDIVIDUAL OR CHARGE $ $ TEAM TOWARD TOWARD PROGRAM INCREASED COST FEES $ BASICALLY TAX SUPPORTED Administration e. General Services None None b. Ballfield Reservation's None None None c. Big Willow #4 Scheduling 10 -15 210 Assisgnments UK 10 d. Family Gardens 8 NTKA 86 2 (Seniors NOP 167 Free) e. Ice Rink Reservations None None (Organized programs & others) f. Picnic Reservations None None 260 None Z5 Groups g. Brochure h. Cops N Kids None 1000 None None REBUDGET 1991 PROPOSED ADJUSTMENTS AND CONCERNS None Cover letter explains changes in this service. None This includes a large tournament in August. 1400 There will be no *free gardens in 1991. 260 ALL garden rentals will cost S10.00 None Reservations are only required for groups 3000 of 25 or more. A basic charge of S25 per group for the cost of reserving is proposed. Groups 100 or larger will be charged 550. There will be a reduction to 200 in the number of reservations. Printing costs are about $12,000. A marketing firm might be able to raise 66,000 from advertising within the brochure. This is perhaps too ambitious and should be reduced to 66,000. No charges are anticipated. NEW REVENUE TO MINNETONKA ' HOPKINS $ $ 2650 None None 700 130 None 1500 1350 PROGRAM DESCRIPTION CHARGE PERCENTAGE ABOVE PROGRAM COSTS CLASSES - EXERCISE 1.50 per /hr. 900 INDIV. UK .25 per/hr One -half of the year's program for approx. (2.50) is advertised and in operation. 400 200 10 hrs. This is the most active of the (15.00) entire year. About one- fourth of the increases will be accomplished in 1991. 10X = 1,800 400 200 CLASSES - TENNIS Outdoor 12, 15 472 INDIV. UK 5 IIDIV. 1560 790 Indoors 20-28 Season is underway Tournament 8,11 or 16 175 1 120 60 FEE SUSTAINED PROGRAM COSTS YOUTH BASKETBALL Grade 3 -6 2nd Grade YOUTH BASEBALL Mighty Mite 20 72 T -Ball 15 239 Grocers 20 ' 71 YOUTH OPEN GYM NOTE YOUTH INTRODUCTION TO BALI. SKILLS YOUTH SOCCER 1990 - •PROFIT^ REGISTRATION 1991 ADDITIONAL CHARGE MADE INDIVIDUAL OR CHARGE S S TEAM TOWARD TOWARD PROGRAM INCREASED COST FEES S 10% = 1,130 1,680 750 31 Child 350 UK 5 IIDIV. 8 Clinic 25 150 INDIV. UK 5 INDIV. Fall 24 1163 UK 10 INDIV. Indoor 19 350 YOUTH VOLLEYBALL 10 IIDIV. 2,000 60 5 IRON. 75 T 125 IMDIV,I� 5 10 PROPOSED ADJUSTMENTS AND CONCERNS Possibly discontinue program Season is advertised. An increase rill be applied in 1992. Advertised MEW R E TO MINNETONKA HOPKINS S 1 S 1150 { 600 160 90 1,310 690 260 130 1600 800 0 0 1860 930 NONE NOME PROGRAM DESCRIPTION BASICALLY TAX SUPPORTED Adaptive Recreation a. Clubs b. Services (Integration) Senior Citizens a. Trips 8 Outings 8. Dances Ice Rink - Warminghouses 1990 "PROFIT" REGISTRATION 1991 ADDITIONAL CHARGE MADE INDIVIDUAL OR CHARGE S S TEAM TOWARD TOWARD PROGRAM INCREASED COST FEES S Varied Fee Sustained none none 1200 UK 1 none PROPOSED ADJUSTMENTS AND CONCERNS Staff is considering discontinuation of the adult program. Alternatives considered for 1991 -92 season are: - Close one week early in February - Reduce daily hours by 1/2 hour, closing at 9:00 p.m. - Close all sites Sunday evening at 6:00 p.m. - Combinations Adjustments proposed will not benefit 1991. Hours, weeks, salary, etc. are committed and presumably spent for January and February. The only flexibility that remains is for December, such as delaying opening for one week, (December 22 versus December 13) or not opening until January 1. HOPKINS: Opening on December 22 will save eight days of salary ($1,400). After December 22 will be paid from 1992, therefore there is no 1991 savings. MINNETONKA: The last 13 days of 1990 were charged to 1991. The last 10 days of 1991 will be charged to 1992. Savings by waiting to open December 22 is four days salary. P NEW REVENUE TO MINNETONKA ', HOPKINS s $ none 800 400 none 0 none none Proposed for 1992 adjustments are: - Close at 9:00 p.m. nightly saving 1/2 hour. Savings to Minnetonka S1,400, Hopkins $1,050 - Close Sundays at 6:00 p.m. Savings to Minnetonka $1,200 Hopkins $900. 0 PROGRAM DESCRIPTION BASICALLY TAX SUPPORTED Shady Oak Family Membership 13 1,300 Daily Parking 2 2,677 Daily Admission 1 13,568 FEE SUSTAINED PROGRAM COSTS BASICALLY TAX SUPPORTED Summer Playgrounds There is no charge for this program 1990 .PROFIT. REGISTRATION 1991 ADDITIONAL CHARGE MADE INDIVIDUAL OR CHARGE S S TEAM TOWARD TOWARD PROGRAM INCREASED COST FEES S 6,000 2 .25 .25 Swimming a. Winter Pool Lessons 15 -24 150 2 b. Winter Pool Splash .50 c. Summer Pool Lessons 15 -24 533 2 d. Summer Pool Splash .50 3,000 .50 e. Sumner Beach Lessons 16 255 2 PROPOSED ADJUSTMENTS AND CONCERNS - Senior citizens and group homes °free" permits will be discontinued. -The local public school's latch -key ' prices" will be discontinued. No new fees are anticipated by these actions. -All .increased fees" include the Minnesota admission tax. 1990 final week in August daily average 1,500 t i 750 receipts for parking, admission and con- cession, extended times 15 additional days. 6,850 3,400 Classes are underway. Activity is underway. In the future, Saturday splash will no longer be free. Discontinue one playmobile unit, including salary, rental, supplies and three locations. NEW REVENUE TO MINNETONKA • HOPKINS 1,750 ° 850 1,600 800 2,000 1,000 none none 650 700 350 1,700 4,250 none none 350 350 150 850 Discontinue the Teen Program 2,350 Close Central for 1991 only -in construction. 1,800 4,250 4,150 PROGRAM DESCRIPTION BASICALLY TAN SUPPORTED Park Bests Services Attendants FEE SUSTAINED PROGRAM COSTS Day Carp CHARGE PERCENTAGE A80V9 PR OGRA M COSTS Adult Sports - Basketball 5 Player 3 Player Open Gym Adult Sports - Braostmll 1990 •PROFIT• REGISTRATION 1991 ADDITIONAL CHARGE NUDE INDIVIDUAL OR CHARGE $ $ TEAM TOWARD TOWARD PROGRAM INCREASED COST FEES S 43 201 INDIY. UK 5 305 35/Teme 10% • 820 N on Resid. 1050 24 Teams uK 50/Ts UK None Season is advertised PROPOSED ADJUSTNENTS AND CONCERNS Central funds will be needed at Blake, or Oakes. Can not rely on facilities Mens 195 lateens UN 50 Season is uderwy. Increased fees Omens 110 5 Teams UK 50 to apply to 1992. collected in December Co-Rec 110 16 Teams UK 50 1991. Adult Sports - Football 10% • 675 N an Resid. 1400 7 Player 205 8 Teams La 50/Teem 5 Player 120 12 Tens UK 50/Team 10% a 265 Nan Resid. 650 • NEW REVENUE TO MINNETONKA HOPKINS \ 650 350 None E30 400 800 400 650 • PROGRAM DESCRIPTION CHARGE PERCENTAGE ABOVE, PROGRAM COSTS Adult Sports - Softball 30Z = 15,845 N an Resident = 14,575 =Other Bal. = 7,816 Adult Sports - Volleyball 1990 "PROFIT" REGISTRATION 1991 ADDITIONAL CHARGE MME INDIVIDUAL OR CHARGE S S TEAM TOWARD TOWARD PROGRAM INCREASED COST FEES $ Sumer "Single" 260 • 200 Teams UK Mon Resid. 75 - Sumer Co -Rec 105 • 50 Teams UK Man Resid. Fall 105 • 86 Team UK Nan Resid. 38,236 Fall 100 • 110 UK Man Resid. Winter 105 110 Mane Sumer 95 18 RAC 10Z = 1,800 N on Resident 3,920 Classes Cross Country Sking 15 -45 0 RAC Adult Sports - Soccer Sumer 17 162 Indiv. UK Indoor 19 -14 170 Indiv. None i 75/Ten Aasuiptions are that there rill be adequate 10,000 I 5,000 fields in 1991 and that team rill return. 50/Team 1,700 800 50/Teas 2,900 1,400 14,600 7,200 25/Ter Nave - 25/Tema 2 10/Eacb None PROPOSED ADJUSTMENTS AND CONCERNS Charges are 1302 plus non-resident fee. Charges are 1102 plus non - resident Season is underway. 1050 TOTAL: 55,150 NEW REVENUE TO MINNETONKA HOPKINS S S 1,800 ; 900 300 150 2,100 1,050 Class underway for 1991. Pane None Season is underway 1050 550 550 29,510