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Committee of the Whole - 19 Apr 2021 - Agenda - Pdf
CITY OF RENTON AGENDA - Committee of the Whole Meeting 6:00 PM - Monday, April 19, 2021 Videoconference 1. COMMUNITY SERVICES RECREATION UPDATE - STRATEGIC PLAN AND COST RECOVERY a) Presentation b) Cost Recovery Departmental Policy c) Draft Recreation and Neighborhoods Operational Strategic Plan Currently, due to the spread of COVID-19, all regularly-scheduled committee meetings will be held as necessary via video-conference. City Hall is closed to the public. If you would like to attend this week's meeting remotely, you can do so by going to https://us02web.zoom.us/j/86753290028?pwd=M2pOc09HWWNrY05uVnlIWnpGS1E4UT09 Zoom Meeting ID: 867 5329 0028, Passcode: 881839 You can call through Zoom at (253) 215-8782 and use the Meeting ID. Cost Recovery Update & Operational Strategic PlanApril 19, 2021AGENDA ITEM #1. a) Reasons for this project…•New recreation software –Perfect Mind•Retirements/Attrition •Cost Recovery Policy update needed•New management/staff•Limited resources •Competition •Aging facilities •Unknown at the time – but how to rebuild after a pandemic AGENDA ITEM #1. a) Project Milestones & TimelineProject kick offDetermination of critical success factors Q1‐Q22O19Summer programming took priority Resource allocation and evaluation of cost recovery modelQ3‐Q42019Participated in 3 interactive and engaging workshops held on Oct. 15th2019 88 Community MembersService Assessment –an intensive financial and market review of programs, services, and facilities Q12020COVID‐19 takes place, and our priorities and operations completely changeWe resume work during Q3Q2‐Q420YYDrafted and updated Cost Recovery Policy, and new Operation Strategic Plan ready for departmental approval and implementationLet’s Go!AGENDA ITEM #1. a) Cost RecoveryA tool to help determine how recreation programs and services can be priced, managed, and delivered to operate cost effectively. The intent is to balance and ensure resource allocation is reasonable and fees for programs and services are realistic and easy to explain to the public. Our process was built upon the 2014 approved Cost Recovery CS Departmental Policy, while taking a deeper dive into the assessment of services, and performance measures.AGENDA ITEM #1. a) AGENDA ITEM #1. a) Sorting Services ExerciseDo our priorities match that of our residents, customers and community partners? AGENDA ITEM #1. a) Adaptive Recreation AmeriCorps Vista Program Centro RenduCity Staff current & retired from various departmentsCommunities in Schools Park RunRANURenton ChamberRenton Neighborhood AssociationsRenton Police Community Engagement TeamRenton residents (47)Renton School DistrictRenton Technical College Renton Youth CouncilRenton: Planning, Library, Senior Advisory BoardYouth Sports OrganizationsWho Participated:AGENDA ITEM #1. a) Public Safety EducationInternal ServicesPartnered Social ServicesPublic Workshop ResultsAGENDA ITEM #1. a) Focus Area One: Vision for the FutureFocus Area Two: Program Distribution and DisparityFocus Area Three: Resource AllocationFocus Area Four: Service Assessment Focus Area Five: Evaluation and ImplementationOperational Strategic PlanAGENDA ITEM #1. a) With in the Operational Strategic PlanAction‐oriented plan, themed around “Let’s Go” 5 Focus Areas 44 strategic objectivesObjectives categorized into implementation timeframesAGENDA ITEM #1. a) Key FindingsTo increase the use of data and mapping to help prioritize allocation of resources and equity of services delivered and customers served Standardization of processes will allow for transparency of operations and service delivery, this will also allow for quality control and process improvements The recommended method of setting and changing fees is done so in a meaningful methodology that aligns resource allocation and pricing with community values.The divisions resources and efforts will need to remain nimble and adaptable to provide the most benefit to the community as done so during 2020The need for an operational guiding document and to update the document annually so that it is more so “living” version and relevant AGENDA ITEM #1. a) Next StepsAllprograms will be ran through the newly proposed Cost Recovery Model which may result in fee changes and or addition or elimination of programs Any fee changes in the City’s Fee Schedule will be submitted to Council for approval prior to the change occurringOnce approved we will begin to execute the objectives identified in the Operational Strategic PlanWe will host this fall another interactive community conversation like the 2019 workshops AGENDA ITEM #1. a) Thank youAGENDA ITEM #1. a) 1 H:\Recreation\Cost Recovery\Final Draft Cost Recovery and Program Pricing Guidelines.docx Community Services Department Recreation Division Cost Recovery and Program Pricing Guidelines Approved by Renton City Council on September 15, 2014 AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 2 EXECUTIVE SUMMARY The Cost Recovery and Program Pricing Guidelines were prepared to develop a methodology for determining the appropriate target of cost recovery for current and future services. This model provides guidance for determining which program services should be fee based, and provides a method to ensure that current services are priced at a level commensurate with Renton Results directives. This guide will help the Recreation Division determine how well aligned its current pricing practices are with cost recovery goals and establish a methodology for appropriately aligning current and future program services. Cost recovery refers to the amount of revenue that the Recreation Division takes in from fees, charges, and alternative funding in proportion to operational expenditures. Cost Recovery and Program Pricing Guidelines will provide direction to sustain quality program services in a growing community, while costs of doing business continue to rise. In the summer of 2011, the Recreation Division decided to examine Cost Recovery and Program Pricing issues and began work on addressing issues related to cost recovery and subsidy philosophies pertinent to how we deliver sustainable services. The Recreation Division identified direct and indirect costs associated with providing programs and services, and defined various fees and participant categories that pertained to the Cost Recovery Programming Tiers. They defined these terms specifically relating to Public Good and Private Good criteria which ultimately defined categories of programs and services associated with target cost recovery ranges. The Recreation Division determined the Cost Recovery and Program Pricing Guidelines were to be implemented beginning in the Winter/Spring programming of 2012. An annual review of the Cost Recovery and Program Pricing model is conducted to adjust to inflation, community input, and program evaluation recommendations. In the fall of 2013, the Recreation Division re-visited the guidelines and made recommendations to the model. The recommendations that have been implemented include: • Separating mid-range special events that have “community good” into their own cost recovery tier. • Re-allocating programs within the subsidy tiers. • Identifying exceptions to cost recovery and defining them. AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 3 TABLE OF CONTENTS Executive Summary ....................................................................................................................................... 2 Cost Recovery Guidelines.............................................................................................................................. 5 Section 1. Cost Recovery DEFINITION .......................................................................................................... 5 Cost Recovery Defined .......................................................................................................................... 5 Cost Recovery in Recreation ................................................................................................................. 5 Section 2: Vision, Mission, Goals, and Strategies......................................................................................... 7 Vision..................................................................................................................................................... 7 Mission .................................................................................................................................................. 7 Goals ..................................................................................................................................................... 7 Community Services Department Mission ........................................................................................... 8 Recreation Division Mission .................................................................................................................. 8 Livable Community Goals ..................................................................................................................... 8 Livable Community Strategies .............................................................................................................. 8 Section 3: Description of Benefits Continuum and Filters ......................................................................... 10 Who Benefits? ............................................................................................................................................. 10 Community Benefit/Individual Benefit Continuum ............................................................................ 10 Community Benefit ............................................................................................................................. 10 Individual Benefit ................................................................................................................................ 10 Mixed Benefit ...................................................................................................................................... 10 Cost Recovery Tier Definition ............................................................................................................. 10 Secondary Filters ................................................................................................................................. 11 Section 4: Sorting Services into Tiers ......................................................................................................... 13 Program Tier Descriptions .......................................................................................................................... 14 1. Full Subsidy Programs ................................................................................................................. 14 2. Mostly Subsidized Programs ....................................................................................................... 14 3. Partial Subsidy Programs ............................................................................................................ 14 4. Self-Sustaining Programs ............................................................................................................ 15 Section 5: Direct, Incremental, Ongoing and Overhead Cost Descriptions .............................................. 16 Direct Program Costs .................................................................................................................................. 16 Overhead Costs ........................................................................................................................................... 16 PROGRAM PRICING ..................................................................................................................................... 17 Pricing Guidelines........................................................................................................................................ 17 Recommended Fees............................................................................................................................ 17 Determining Program Pricing ............................................................................................................. 17 Fixed Incremental and Ongoing Costs for Renton Recreation Programming ..................................... 17 Applying Full-Time Employee Costs with Benefits .............................................................................. 18 Pricing Factors ..................................................................................................................................... 18 Instructor Payments............................................................................................................................ 19 AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 4 General Recreation Program Report .................................................................................................. 20 Refund Policy ...................................................................................................................................... 20 Appendix A Recreation Programming Target Outcomes ........................................................................... 21 Appendix B Program Proposal and Budget ................................................................................................ 23 Program Proposal ....................................................................................................................................... 23 Program Budget .......................................................................................................................................... 25 AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 5 COST RECOVERY GUIDELINES SECTION 1. COST RECOVERY DEFINITION Cost Recovery Defined Cost recovery at a basic level is a very easy to understand – it is the percentage of expenditures recovered by generating revenue for any undertaking. Having cost recovery goals is a concept very familiar to private sector and for-profit enterprises because their very existence depends on the ability to recover at least what they spend and generally to turn as much profit as possible. In the public sector, however, the concept of a specific cost recovery policy is fairly new. While there may have been revenue expectations for certain areas of the budget in a public sector agency, or even enterprise funds that have a full cost recovery expectation, the majority of services delivered by the public sector have focused on the expense budget which is determined by the amount of tax dollars collected. This has historically been the case with the field of Parks and Recreation where funding primarily comes from public subsidy and the services themselves were not expected to generate any significant revenue. Staying within budget by not overspending has typically been the mandated goal, where revenue generation was secondary. Cost Recovery in Recreation Applying explicit cost recovery policies to recreation departments is a relatively new idea and is not without resistance within the field. Many believe that providing recreation opportunities and services is a public service, and treating it like any other business undermines the core of its primary mission. Parks and recreation services provide immeasurable benefits to the entire community and aspire to be open and accessible to all. The goal is to serve as many as possible and have the greatest beneficial impact to the community. In private business the goal is to generate revenue, and the inability to pay limits access to services. Another source of resistance for cost recovery policies in recreation is that it has been historically free or low cost, and this is what citizens and recreation professionals have come to expect. Public recreation programs originated as social programs much the same as roads, fire, or police. There was no expectation to charge fees for programs and they were mostly supported by tax dollars. It has long been assumed that private business practices were not generally applicable to public recreation programs because the goal is not the same; the benefits of recreation are not measured in dollars. As resources shrink and the cost of providing services has grown, recreation departments across the country began adopting some business practices from the private sector, including creating cost recovery policies, and applying them to the field of public recreation services. The result is an array of AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 6 cost recovery models that help departments become better stewards of the public funds, while taking into account the public benefit of the services and recognizing the need for some level of public subsidy. Cost recovery in recreation is rarely about recovering the full cost of providing services or generating a profit. In fact, if public recreation departments were held to the same cost recovery standards as private businesses they would most likely fail and the programs that provide the greatest benefit to the community and those most in need would certainly not be offered. A sound cost recovery policy for public recreation should balance the social mission of recreation to provide opportunities and services that improve the quality of life for residents, and contributes to a more livable community with the reality of shrinking budgets, limited resources and the need to be more efficient and accountable by prioritizing services at levels that can be sustained by revenue. Generating revenue through user fees, sponsorships, partnerships, grants, and other funding sources helps recreation departments reduce taxpayer subsidy in order to continue providing services without having to make severe cuts. Through establishing a cost recovery policy that identifies what services are most beneficial to the community as a whole and merits a higher subsidy, as well as what services have the potential to generate higher revenue when equitably priced, recreation departments can continue to offer both. AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 7 SECTION 2: VISION, MISSION, GOALS, AND STRATEGIES The starting point for developing a cost recovery plan is to understand the mission of the organization and how the division supports that mission. It is important that the organizational values reflect the community mission and the division’s mission supports those goals, strategies, and values of the organization. In order to develop a clear and consistent policy that reflects the mission of the community, organization, department, and division it is helpful to understand how the mission at each level of the organization ties in to the others and becomes more specific and instructive as you go from city to department to division. The City of Renton Recreation Division is part of the Community Services Department within the City of Renton. The mission, vision, and goals for each level of the organization are not independent of each other, but rather refined, specific pieces of a consistent, overarching community vision. The Renton Business Plan spells out broad organizational goals and provides a “big picture” vision for Renton. Within the Renton Business Plan, five important goals are identified that help guide the future of the City as a whole, and help to define each department’s core services. While the Community Services Department is instrumental in fulfilling multiple goals in the Renton Business Plan, the vast majority of Recreation programs are designed to meet the service demands that contribute to the livability of the community, or simply put, “livable community.” Everything that the Recreation Department does should advance this goal through one of the five categories of strategies identified within “livable community.” The missions, visions, goals, and strategies follow. Vision Renton: The center of opportunity in the Puget Sound Region where families and businesses thrive. Mission The City of Renton, in partnership and communication with residents, businesses, and schools, is dedicated to: • Providing a healthy, welcoming atmosphere where citizens choose to live, raise families, and take pride in their community. • Promoting planned growth and economic vitality. • Valuing our diversity of language, housing, culture, backgrounds, and choices. • Capitalize on the diversity of the community to build stronger neighborhoods and ensure the availability of City services to all. • Creating a positive work environment. • Meeting service demands through innovation and commitment to excellence. Goals 1. Meet the service demands that contribute to the livability of the community. 2. Manage growth through sound urban planning. AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 8 3. Influence decisions that impact the City. 4. Promote strong neighborhoods. 5. Promote citywide economic development. Community Services Department Mission To provide to the citizens of Renton quality of life opportunities through leisure time activities and Human Services Programs. This includes maintaining parks, trails, facilities, a museum, and offering a variety of recreational activities for people of all ages. The Department also provides information and referral programs. Recreation Division Mission The Recreation Division of the Community Services Department promotes and supports a more livable community by providing opportunities for the public to participate in diverse recreational, cultural, athletic, and aquatic programs and activities. Livable Community Goals Meet the service demands that contribute to the livability of the community: • Prioritize services at levels that can be sustained by revenue. • Plan, develop, and maintain quality services, infrastructure, and amenities. • Respond to growing service demands while meeting the unique requirements of a diverse population through partnerships, innovation, and outcome management. Livable Community Strategies Provide avenues for residents to meet their social, educational, personal, and professional needs and foster community engagement and dialogue that: • Are inclusive of all ages, abilities, and cultures. • Welcome new participants and forge new relationships among residents. • Provide diverse recreational, intellectual, cultural, and artistic activities and programs. • Strengthen and encourage a sense of belonging through volunteerism and neighborhood involvement. • Provide opportunities for social interaction, shared experiences, and cultural exchange. Provide opportunities for learning and enrichment: • Provide diverse intellectual, cultural, artistic, and recreational activities and programs that meet the needs and interests of the public. • Promote opportunities for shared experiences, cultural exchange, social interaction, and volunteerism within the community. • Develop and maintain collections of materials and resources that support the intellectual and informational needs of the public. AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 9 • Incorporate public art into the design and creation of community spaces, and maintain it. • Support formal education, life-long learning, and personal growth. Create clean, safe, healthy, well-maintained, and accessible places: • Clean, safe, well-maintained, and accessible parks, open spaces, trails, facilities, right-of-ways, and other City properties. • Public and private developments that are accessible to all, are well-landscaped, and easily maintained. • Provide safe, accessible, well-maintained, and healthy recreational programming and facilities to engage, challenge, and bring together members of the community to promote personal well-being. • Incorporate sustainability in design of facilities to adapt to change and meet community needs. AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 10 SECTION 3: DESCRIPTION OF BENEFITS CONTINUUM AND FILTERS WHO BENEFITS? Community Benefit Individual Benefit Community Benefit/Individual Benefit Continuum – Foundation of all Programs As a whole, recreation programs span a continuum that encompasses programs that benefit the community as a whole through programs that serve primarily the individuals that take part in them. Community Benefit programs not only provide recreation opportunities but also meet a broader community goal. Senior programming or Specialized Recreation programs respond to a clear community goal to “fill in the gaps” within our community to serve underserved groups with limited resources and recreation opportunities. Community benefit programs are also characterized by their indivisible nature. Many people can take advantage of a trail, a beach, or drop-in activities at a community center without depleting the availability of that resource significantly. Their use of that facility or opportunity does not preclude use by others. Individual Benefit programs are designed to meet the expressed needs of participants for particular programs. Their benefit is primarily to the individual user and space and access to the program is limited in availability or selective in nature. Participation in the program by one user diminishes the availability of that program to other users, or in the case of rentals, reserving a particular space restricts access to that space by other members of the community. Mixed Benefit programs fall in the middle of the continuum. Rarely is a recreation program strictly community or individual benefit. Most of the recreation programs offered have some mix of both community benefit and individual benefit. One example is summer day camps for youth. The community has expressed a clear desire for programs that serve youth and families where they benefit by having a safe, structured program for their kids to participate in healthy activities when school is out. Day camp spaces, however, are limited in number and have significant cost in staffing and supplies. The public benefits by having youth programming available, especially when school is out, and the individual youth and families also benefit from these opportunities. To the extent that these programs benefit the community, they deserve some level of support and they are also candidates for some level of cost recovery by user fees. Cost Recovery Tier Definition – Cost Recovery Tiers establish the expectation that the Recreation Division will confirm or determine current cost recovery and subsidy allocation levels by program service area. This will include consideration of program revenues sources and services costs or expenses. The Cost Recovery Tiers are categorized into four programming tiers: 1) Full Subsidy, 2) Mostly Subsidized, 3) Partial Subsidy, and 4) Self-Sustaining. The programming tiers range from Public Good (Full Subsidy) to Private Good (Self-Sustaining), with most of the recreation programming being categorized on a continuum between public and private good. Example of Public Good would be Lifeguards at Coulon Beach Park because it benefits safety to many who swim there. Example of Private Good would be AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 11 private tennis lessons for someone who takes lessons on a one-on-one basis, because it only serves one person and occupies valuable court time. Cost Recovery Programming Tiers correct inconsistencies in program cost accounting that sometimes become difficult to determine when delivering a program. Results of the Programming Tiers will identify whether staff members know what it costs to provide services to the community; whether staff has the capacity or resources necessary to account for and track costs; whether accurate cost recovery levels can be identified; and whether general ledger line items align with how the Recreation Division may want to track these costs in the future. Secondary Filters – these can move a program from one tier into another: Evaluating a program based solely on the benefit continuum would nicely categorize programs that are strictly community or individual benefit, but does not adequately evaluate the majority of programs that are “mixed benefit.” The following additional filters help to place mixed benefit programs into one of the defined cost recovery tiers by taking into account additional factors such as time, cost, commitment, and targeted populations. A. Commitment (the intensity of work/resources to offer program) The level of commitment a program requires in order to be offered has to be considered when evaluating cost recovery goals. The higher the commitment, the more cost recovery will be necessary. B. Obligation (our role to provide) If we are obligated to provide a certain service, such as lifeguarding at beaches, that must be taken into account. Regardless of the place on the continuum, these programs will be offered so cost recovery goals are secondary to mandated services. C. Market (highly popular or small market?) Program and activity pricing should consider the market rate for similar services as well as the demand. A very popular program with limited space and a long waiting list may be a candidate for higher cost recovery if it is determined that demand exceeds supply or the price is significantly lower than the going market rate. Alternatively, a high community benefit program may require a price decrease because of market factors in order to be viable. D. Cost to provide (cost per participant, to run the program?) Cost is another factor when considering cost recovery goals. This is different from commitment because it deals exclusively with dollars, not necessarily resources or time. Programs with high cost and high community benefit may require higher cost recovery than low cost programs with comparable benefit. One example is specialized programs that may require expert instructors or expensive supplies. E. Who we serve (is this serving a targeted population as defined by community surveys and evaluations?) Targeted populations are the result of expressed desires by the community to serve certain groups by removing barriers to participation. One significant barrier to participation is cost. A program may be the exact same as another that is offered to the general public, but because it AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 12 is targeted to a certain population, the cost recovery goal and thus the price, may be lower because of who is served by the program. F. Are others in the community already doing it? This filter addresses the reality that park and recreation departments must be selective with limited resources. Many programs have considerable benefit to the community, but we do not offer them because the needs or market for that program is already being met by other providers within the community. If we decide to offer a program that is already offered within the community, cost and pricing should be consistent with the market rate at least, so as not to compete with other providers within our community. G. Is the program partnered with other agencies or organizations? Programs are more cost effective when partnered with other agencies and organizations. Examples include Aces Tennis, non-motorized boating programs, programs with the local YMCA, etc. AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 13 Mid-Range Recreation Division Special Events – Attendance of 100 and Above – Complements Our Community • Recover direct costs (part-time staffing, supplies, marketing, etc.) • Need to realize cause and effect of using other departments • Utilize partnerships or sponsors • Need to measure – pre- and post- reports • All new events need to be discussed by members of the Recreation Division to review feasibility, impact, uniqueness and appropriateness The PRO Plan (Parks, Recreation and Natural Areas Plan) identified special events as an area that the City of Renton could add or enhance within the mix of our recreational offerings. Current mid-size events include: Polar Bear Dip, Hoop Shoot, Daddy Daughter Dance, Flashlight Egg Hunt, Community Garage Sale, Fishing Kids, Family Fun and Films, Coulon Concert Series, Pooch Plunge or any HMAC Special Events, Holiday Bazaars, Halloween Events, K9 Fun Run, Thanksgiving Dinner. Cost Recovery Tiers 1. Full Subsidy Programs 2. Mostly Subsidized Programs 3. Partial Subsidy Programs 4. Self-Sustaining Programs $0 to nominal Cost Recovery expectations. Cover all incremental costs of the activity plus 20% of ongoing costs Cover all incremental costs of the activity plus 30% of all ongoing costs. Cover all incremental and ongoing costs of the program costs. Senior Activity Center Drop-In Senior Fitness Room Youth General Programs Aquatic Center Programs Neighborhood Center Drop-In Senior General Programs Preschool General Programs Facility Rentals Beaches – Lifeguarding Specialized Recreation Programs Day Camps Picnic Shelter Rentals City Use Facility Rentals Teen General Programs Field Rentals Renton Youth Council Parent/Child Programs Adult Programs Emergency Management Classes Youth Sports Field Rentals Adult Athletic Leagues Certification Classes Senior Trips Adult Fitness Youth Cultural Art Programs Preschool – Tuition Based Teen Day Trips AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 14 SECTION 4: SORTING SERVICES INTO TIERS PROGRAM TIER DESCRIPTIONS (See chart on page 13) 1. Full Subsidy Programs • Serve targeted populations Seniors Teens Specialized populations Low income residents (scholarships) • Basic health and safety • Relatively low cost to operate programs • Higher fees would be a barrier to access to programs that have high community benefit. • Contributes to the livability of the community by offering basic programs that have high community benefit and programs would likely not exist if the City of Renton did not offer them. 2. Mostly Subsidized Programs • Serve targeted populations • High benefit to community • Higher individual benefit than full subsidy programs • Additional resources required, for example - staffing, supplies, and equipment costs • Historically, fees have been charged for programs • Ensures availability of recreation and leisure activities to all by reducing barriers to participation 3. Partial Subsidy Programs • Primarily serve youth, teens, families and targeted populations • Focus on health, fitness, introductory skills and developing life-long recreation skills • Clear demand exists for programs and the demand cannot currently be met by other recreation providers in the area • Market pricing or customer's ability to pay prevents full cost recovery • May have higher staff and supply cost than Tier 2 programs • Programs are not specialized; open to all who want to participate • Benefit individuals and the community by providing access to programs and activities that promote healthy lifestyles and make Renton a more attractive place to live and raise a family AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 15 4. Self-Sustaining Programs • Meets a clear demand for recreation activity or program and improves livability in the Renton community. • Primary benefit is to the user or participant • May be competitive in nature as opposed to instructional • Does not specifically serve targeted populations in their program goals • May have high cost to offer programs or activities (staff time and supplies) • Specialized in nature • May be offered by private sector or other recreation providers nearby • Market and customer ability to pay allows for full cost recovery • Participation in these activities, programs, and rentals limits availability of resources to the general public AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 16 H:\Recreation\Cost Recovery\Final Draft Cost Recovery and Program Pricing Guidelines.docx SECTION 5: DIRECT, INCREMENTAL, ONGOING AND OVERHEAD COST DESCRIPTIONS DIRECT PROGRAM COSTS Direct program costs are those costs that are related to providing recreation classes, programs, or activities and would not be incurred if recreation programs, classes, or activities were not offered. There are two types of direct program costs: Incremental Program Costs • Incremental costs are specific to a program or activity and fluctuate up or down based on the number of offerings of that activity or program. These costs are variable and include program supplies plus contracted or part-time wages for staff that teach classes or supervise programs. Ongoing Program Costs • These costs are ‘fixed’ in that they stay relatively the same regardless of how many programs are offered. Ongoing program costs include full-time recreation staff that organize and supervise recreation programs, the recreation brochure, and related supplies and services. OVERHEAD COSTS Overhead costs are those costs that occur regardless if recreation classes, programs, or activities are offered. These costs include support, administration, information technology, ongoing maintenance costs and capital improvement costs. AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 17 PROGRAM PRICING PRICING GUIDELINES Recommended Fees The purpose of the fee guideline is not to only determine specific prices, but to guide the development of prices by the recreation staff members. It does this by creating cost recovery targets for separate Cost Recovery Tiers, or groups of programs with the same level of expected cost recovery. The recommended guideline is based on extensive discussions with the Recreation Manager and Recreation Supervisors, Recreation Coordinators, and our review of the 2011 cost recovery results. In 2011, the Division recovered 39% of its direct and overhead cost of all programs, events, staff, and rentals. The implementation of pricing for programs is based on the following pricing methods. Determining Program Pricing The steps to program pricing assist in determining direct costs consisting of ongoing and incremental costs with the associated overhead costs included. The process identifies the full-time staff and part- time staff costs with benefits, marketing costs, contracts, supplies, equipment, awards, facility room costs, vehicle usage, field usage, field light usage, and other associated direct costs. Additional information regarding fixed direct costs was determined through research on facility cost, power usage, and fleet costs. Fixed Incremental and Ongoing Costs for Renton Recreation Programming • Baseball/softball field preparation per occurrence = $20.00 • Soccer and other field preparations per occurrence = $35.00 • Ball field lighting charge per hour = $4.00 • Vehicle use per mile charge = $0.56 • Marketing costs for programs are based on the space in the Recreation Brochure at $400 per page. • Facility room charges per hour: 1) Large Room = $14.00/hour 2) Medium Room = $7.00/hour 3) Small Room = $3.00/hour Rooms were calculated based on an $8.94 per square foot per year calculation. For example: large rooms are Renton Community Center gyms and Carco Theatre; medium rooms are the Renton Community Center Banquet Room and the Senior Activity Center Auditorium; and small rooms are the classrooms at all facilities. • Part-time regular and PERS-eligible (Public Employee Retirement System) employee benefit percentage = 20% AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 18 Applying Full-Time Employee Costs with Benefits • Recreation Coordinator FTE = $96,000 per year (2014) • Recreation Supervisor FTE = $114,000 per year (2014) • Each Recreation Section allocates and distributes their time to programs, rentals, activities, and events. Recreation Coordinators and Recreation Supervisors use 20% and 25% respectively for administration, (staff meetings, budget meetings, etc.) • Each Recreation Supervisor uses a predetermined Facility Operations Cost (set by the Facility Division) for Renton Community Center, the Senior Activity Center, and Carco Theatre. • City-wide events (Fourth of July, Renton River Days, and Clam Lights) are supported by Recreation staff. These events are not expected to calculate cost recovery measures for staff time. The mid- range special events such as the Hoop Shoot, Polar Bear Dip, carnivals, etc. are applied to the cost recovery model in a separate category. See tiers under Section 4. Pricing Factors • Contractor and part-time instructor pricing should be based on direct and indirect costs and the ability to reach program minimums to meet the cost recovery goals. • Incentive pricing needs to continue for residents though preferred programming methods for early registration, season passes, and rental uses. The Resident and Non-Resident Policy should apply to all programs and events. • An Administration Fee of $3.00 will be assessed for all programs to be applied to Support Staff costs. • Efficient expense line management practices should be used to reduce the expense bottom line which assists in accomplishing the cost recovery expectation for a program and event. • All sponsorship/grant monies received will be credited as revenue against the overall cost recovery of the program and event. • Establishing partnerships is strongly encouraged to fill in identified gaps identified by the Parks, Recreation, Open Space and Natural Resources Plan. • Program life cycle continuum is described in stages of introduction/nurture, growth, maturity, and decline. If you are introducing a new program, you may want to price the program a little lower to generate interest. If the program is in the growth stage with waiting lists, the program price could be raised due to demand. If the program is in the decline stage, programmers should look at moving the program to a less expensive facility, or eliminate the program altogether. • Minimum and maximum participation levels need to be set at appropriate cost recovery expectations. A minimum number to hold a program is very important to covering all costs. Maximum participation levels may be limited by facility space or instructor availability. • Scholarships are fully supported by donations. A limited number of scholarships are available for low to moderate income families who would like to participate in recreation programming, but are unable to pay the program fees. To be eligible for a scholarship, total family income must not exceed 80% of the King County median income as specified by U.S. Housing and Urban Development. Please see the application for specific guidelines. Applications are available online or at the Renton Community Center. AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 19 • Resident and Non-Resident Fee Policy – The City Council voted to establish a 20% Non-Resident Fee on all Recreation Division programming and services beginning Winter Quarter, 2003. This action was taken to partially compensate for the support provided for these services by the citizens of Renton through their property taxes. Implementation of the Non-Resident Fee will decrease but not eliminate the amount of subsidy provided by the Renton taxpayers. The Non-Resident Fee is not charged on fees less than $10.00. The Non-Resident Fee cannot be more than double of the resident fee on Coulon Beach Park picnic shelters or Coulon Beach Park boat launch fees, due to the grant funding source that acquired the property. Instructor Payments Contract Instructors – The majority of instructors/contractors should be paid on a per student basis. This translates to a negotiated rate per student multiplied by the total number enrolled in the class. In determining the per student rate, the number of students should be based on the minimum number of students needed. All new instructors/contractors will be paid at or below a rate of 60% per student enrolled, unless there is a strong justification for a higher rate. (Note: An Administration Fee is assessed to assist in the cost recovery of support staff.) The advantages of paying an instructor or contractor on a per student rate encourages the instructor to fill the class. Hourly Instructors – There are few hourly instructors on staff that are paid by this method. The advantage of paying an hourly instructor is the ease of entering time in the payroll system. The disadvantage of hourly instructors is the lack of incentive to fill classes beyond a minimum. Ceiling Rate Instructors – These instructors are paid using a per student registration formula until the class enrollment reaches a pre-determined level of enrollment. Once the enrollment ceiling is established, student registrations beyond that point are not applied to the payment of instructor. The advantage of paying a ceiling rate instructor decreases the expense paid out to the instructor when a class enrollment is above the pre-determined ceiling for rate of pay. The disadvantage is much like that for an hourly instructor which does not give the instructor incentive to fill classes above the ceiling enrollment for the class. Instructor Increases – Increases in instructor pay must always be accompanied by an increase in price of the program. This means the cost of the class to the participant must increase for the instructor to receive an increase in pay. However, an increase in participation fees does not necessarily guarantee an increase in pay to the instructor. AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 20 General Recreation Program Report Recreation Program Budgets – need to follow the cost recovery guidelines to accurately reach the cost recovery goal. Pre-Program Proposal information, Post-Program Report information, and Program Summary Report information are required for all programs with supporting documents with CLASS and EDEN software reports. Pre-Program Proposals will be required to report the course/activity information marketing materials, goals and objectives, facility, contract fees, cost recovery tier, and proposed budget. Programs should use previous enrollment figures or minimum enrollment figures in the proposed budget calculations. Post-Program Report will be required to list all the final numbers of enrollment, registration fee, facility use, vehicle use, cost recovery tier marketing materials used, direct costs with staffing, revenue generated, and program targeted outcomes identified with supported documentation. Program Summary Report will require course activity information, cost recovery tier, revenue, enrollment, incremental expense, ongoing expense, and final financial information. This report will be supported by the Post-Program Report on documentation. Refund Policy • Full refunds will be made for any program cancelled by the City of Renton. • To be eligible for a refund, a written request must be received at least seven days prior to the start of the program. The refunded amount will be the class fee less a $10.00 Administrative Fee. • No refunds will be issued for any program fees of $10.00 or less. • If a request is made after the program has already begun, no refunds will be issued. • No refunds will be issued to athletic teams, league play, or tournament play, if the request is made after the schedules have been completed. • No refunds will be issued for inclement weather, unless it results in the closure of the facility during the time of the rental. • Picnic Shelter/Henry Moses Aquatic Center Canopy, and Group Reservation cancellations must be made at least 14 days in advance of the reservation date to be eligible for a refund. The amount refunded will be 50% of the reservation fee. • If the original payment method was cash or check, a check will be issued through the Finance Department, or a credit will be applied on the account. Credit card payments will be refunded to the account within seven to 14 days. AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 21 APPENDIX A RECREATION PROGRAMMING TARGET OUTCOMES In the box below, write the program or event being evaluated. Check off each planning outcome that is supported by this program or event. Questions for consideration are included below each outcome along with a space for your thoughts or comment on the particular outcome. PROGRAM/EVENT: Outcome: Encourage people to try new things, develop new skills, and/or maintain existing skills. • Is the class structured to teach beginners/novices or a mix of skill levels? • Is this a unique program that users cannot find elsewhere? • Is the program associated with a current or new trend in recreation? Outcome: Adding healthy activities to participant lifestyles. • Does the class involve healthy food (garden, prep, shop) or health education? • Does the class or event engage participants in fitness or exercise? Outcome: Fostering a connection to the natural environment. • Does the program support environmental education or nature interpretation? • Do participants interact with natural areas or observe wildlife? Outcome: Creating positive activities and fun environment for youth. • Does the class promote positive self-esteem and team building for youth? • Does the class engage youth in fitness or social activities? Outcome: Facilitating gatherings and bringing the community together. • Does the event have a community-wide, city-wide or regional audience? • Does this program/event appeal to diverse groups? • Does the program/event provide opportunities for multiple generations or families? Outcome: Promoting individual and community development. • Does the program provide or support life skills? • Does the program/event provide opportunities for interaction with other community members? • Does the program/event provide opportunities to connect with City officials? Outcome: Offering a range of options for different income levels and different abilities. • Does the event/program serve seniors, special needs, or other targeted vulnerable populations? • Is this program affordable for the people it is designed to serve? • Is this program offered where/when the users who need it can attend? AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 22 PROGRAM/EVENT: Outcome: Adapting to new demographics and preferences. • Does the event/program support diverse demographic and cultural groups in Renton? • Does this program support under-served demographic or cultural groups? • Is the program associated with a current or new trend in recreation? Outcome: Offering programs that are responsive to community demands or interest. • Do surveys or public input indicate the demand? • Does current program demand exceed availability? RETURN ON INVESTMENT In addition to supporting program outcomes, each program and event should maximize the impact of community resources invested in it. For each category, circle the appropriate response. Number of people served (or who benefit from program/event) Some Many Most Amount/Cost of Community Investment (Net of any user fees) Low Med High Facilities/Equipment Needed to Support Program/Event Existing New AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 23 APPENDIX B PROGRAM PROPOSAL AND BUDGET Program Name: PROGRAM PROPOSAL Program Details Program Name Program Supervisor Start Date End Date # of Weeks Age Grade Start Time End Time Facility/Location Min. # Participants Max # Participants Resident Fee Non Resident Fee Cost Recovery Tier Internet Registration Internet Display Program Description Program Goals and Objectives 1 2 3 Program Performance Measures 1 2 3 AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 24 Recreation Target Outcomes __ Outcome: Adding healthy activities to participant lifestyles. __ Outcome: Fostering a connection to the natural environment. __ Outcome: Creating positive activities and fun environments for youth. • Does the class involve healthy food (garden, prep, shop) or health education? • Does the class or event engage participants in fitness or exercise? • Does the program support environmental education or nature interpretation? • Do participants interact with natural areas or observe wildlife? • Does the class promote positive self-esteem and team building for youth? • Does the class engage youth in fitness or social activities? __ Outcome: Promoting individual and community development. __ Outcome: Facilitating gatherings and bringing the community together. __ Outcome: Adapting to new demographics and preferences. • Does the program provide or support life skills? • Does the program/event provide opportunities for interactions with other community members? • Does the program/event provide opportunities to connect with City officials? • Does the event have a community- wide, city-wide, or regional audience? • Does this program/event appeal to diverse groups? • Does the program/event provide opportunities for multiple generations or families? • Does the event/program support diverse demographic and cultural groups in Renton? • Does the program support under-served demographic or cultural groups? • Is the program associated with a current or new trend in recreation? __ Outcome: Encouraging people to try new things, develop new skills, and/or maintain existing skills. __ Outcome: Offering a range of options for different income levels and different abilities. __ Outcome: Offering programs that are responsive to community demands or interest. • Is this class structured to teach beginners/novices or a mix of skill levels? • Is this a unique program that users cannot find elsewhere? • Is the program associated with a current or new trend in recreation? • Does the event/program serve seniors, special needs, or other targeted vulnerable populations? • Is the program affordable for the people it is designed to serve? • Is this program offered where/when the users who need it can attend? • Do surveys or public input indicate the demand? • Does current program demand exceed availability? Summary/Comments/Recommendations AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 25 H:\Recreation\Cost Recovery\Final Draft Cost Recovery and Program Pricing Guidelines.docx Program Name: PROGRAM BUDGET Facility Estimate d Actual Comments and Notes Facility Fee Small $3/hr Note: Facility costs are based on $8.94/sq ft Facility Fee Med. $7/hr Facility Fee Lrge. $14/hr Baseball/Softball Field Prep $20/ea Soccer/Other Field Prep $35/ea Sports Field Lights $4/hr Total $0.00 $0.00 Part Time Staffing Estimate d Actual Part Time Staff Note: # staff @ $/hr. x hrs./wk. (x) # wks. Contracted Staff/Services Total $0.00 $0.00 Supplies Estimate d Actual Equipment Awards Miscellaneous Total $0.00 $0.00 Vehicle Estimate d Actual Note: Mileage based on $.56/mile Total $0.00 $0.00 Miscellaneous Estimate d Actual Total $0.00 $0.00 Marketing Estimate d Actual Brochure $400/page/Qtr Note: Marketing costs include brochure, flyers, reader board, etc. Total $0.00 $0.00 FT Employee Program Supervision Estimate d Actual Note: % of FT employee program duties: Tier #1 apply 0% Tier #2 apply 20% Total $0.00 $0.00 Tier #3 apply 30% Tier #4 apply 100% Total Expenses Estimate d Actual $0.00 $0.00 AGENDA ITEM #1. b) COST RECOVERY AND PROGRAM PRICING GUIDELINES 26 H:\Recreation\Cost Recovery\Final Draft Cost Recovery and Program Pricing Guidelines.docx Revenue Estimated Actual Comments and Notes Program Fees Note: Resident fee (x) # participants Sponsorships Non-resident fee (x) # participants Ticket Sales Miscellaneous Total $0.00 $0.00 Total Revenue Estimated Actual $0.00 $0.00 Cost Recovery Profit/Loss Summary Estimated Actual Comments and Notes Total Revenue $0.00 $0.00 Total expenses $0.00 $0.00 Total Program profit (or loss) $0.00 $0.00 AGENDA ITEM #1. b) DRAFT - APRIL 2021 City of Renton Recreation & Neighborhoods Strategic Plan Division AGENDA ITEM #1. c) 4 A Plan for Action A main driver of this endeavor is to create a transparent operational system that is rooted in analytics, best practices, and community input. As a result of this comprehensive process and impending results, the Division will begin the process of implementing strategies that fosters credibility with the public, and those who govern the City of Renton, or manages its resources. These efforts are intended to set direction while creating service sustainability for the organization. The Plan is organized into five overarching Focus Areas. There are 44 strategic objectives within the Plan; each has been developed specifically to address issues and opportunities identified to advance the Plan’s five Focus Areas. Each objective is categorized into one of the following implementation timeframes: Short-term Mid-term Long-term Ongoing Focus Area One: Vision for the Future Intended to set direction for the next decade through strengthening the Division mission and vision and defining strategic goals. Emphasis has been placed on supporting Renton livability goals by building community through engagement at a Division level. Focus Area Two: Program Distribution and Disparity Intended to identify policies and operational practices that ensure RND is being attentive and responsive to disparities in program delivery. As a focused part of the Plan, the Division sought to conduct a data-driven analysis to determine if any income, race, or age disparities in access to recreation facilities and recreation programming exist within the City of Renton. For the purposes of this assessment, disparity considers if there are differences in access to recreation services between population groups. Focus Area Three: Resource Allocation Intended to set direction to identify policies and procedures to revise or develop, allowing Team Members to achieve appropriate Resource Allocation targets. This will allow the Division to maximize revenue generation where appropriate and to shift taxpayer investment/subsidy to those areas more foundational on the pyramid. Focus Area Four: Services Assessment Intended to avoid duplicative services in over- saturated markets which exhaust resources; identify and develop niche markets in response to service area needs; and advance the market position of the RND where services are financially sustainable through an appropriate use of tax dollars, fees, and other forms of revenue. Focus Area Five: Evaluation and Implementation Intended to identify practices and analysis methods for effectively evaluating the implementation of the Plan. Monitoring and evaluation is key to supporting implementation, and to assessing whether the Plan has fulfilled its intent to set direction and to guide resource allocation and service provision. DRAF T DRAF T AGENDA ITEM #1. c) 5 I. Introduction Purpose of the Plan The Recreation and Neighborhoods Strategic Plan provides a roadmap for guiding RND facility and service decisions over the next 10 years. Specifically, this Plan has two purposes: to set direction and to guide resource allocation and service provision. It provides the necessary tools for future decision-making while allowing the City to be responsive to changing needs and demographics. The study provides a justifiable, articulated and agreed upon service delivery strategy and rationale that can be used to allocate resources that most effectively meet community needs. Most importantly it links strategic and tactical intents to overall goals and desired outcomes through an easily understood and implementable measurable approach. This plan seeks to: • Create transparency and trust • Provide tools that filter processes for unbiased decision making • Position the team to provide recommended solutions to challenges facing RND that are creative, while in alignment with the City’s goals • Allow for new ideas while being responsible of tax payer dollars • Provide documented and proven best practices and standards • Support informed decision making through information gathering and data analysis • Build intentional and strategic partnerships • Enhance engagement strategies and Strive for the IAP2 model In an effort to continually improve and develop its services and overall organizational effectiveness, the City of Renton, Recreation and Neighborhoods Division (RND) began an extensive process to create a Recreation and Neighborhoods Strategic Plan. Essential to development of the Recreation and Neighborhoods Strategic Plan was aligning community values with the development of RND’s vision for the future. The process included a review and assessment of services, programs, and facilities; categorization of departmental services based upon the level of community versus individual benefit; a market study; and consideration of service provision strategies. This process and its outcomes will maximize the effectiveness of the Division, assuring a framework for future planning, programming, budgeting, pricing, and resource allocation. DRAF T AGENDA ITEM #1. c) 7 What We Learned The RND staff are extremely dedicated to the Renton community and have made an admirable effort to provide a variety of high-quality services aimed at improving the health and vitality of residents. Staff efforts can be enhanced by addressing several key findings that emerged during the study, including: RND’s Mission statement needs to incorporate the value and importance of neighborhood engagement and its role in supporting the City of Renton’s livability goals. The current policy regarding pricing and cost recovery does not provide a meaningful methodology that aligns resource allocation and pricing with community values. Cost accounting at the activity level is challenging. Program codes are not used consistently to track expenses or labor. A greater emphasis on identifying fee strategies and how they may be applied is needed. Prior to completing the necessary steps of this project, the Divisions lacked consistent, defensible administrative processes to define and track direct costs of programs and services in both pre- planning and program evaluation. The method used to establish class minimums needs further evaluation for consistency throughout the Division. Limited understanding of the City’s budget process and the Divisions’ revenue goals by all staff exist. Non-resident rates are inconsistently applied across the Division. The value of non-resident rates as they relate to meeting program revenue goals and equitable application requires review. Setting fees artificially low and using tax dollars to cover costs of services with moderate and significant individual benefit can result in a disservice to the community over time, such as lack of fairness in assignment of fees as new services come into demand, with limited funding available. In addition, when an economic downturn occurs and there are artificially low fees, it is often necessary to cancel programs and services that could otherwise continue with minor adjustments. To assist with decision-making, a comprehensive program review process is needed that considers the best use of resources and market conditions. Additionally, a formal process to determine how programs and services align with the mission and values of the Division, and the overall benefit to the community, is needed. A guiding policy for the use of sponsorships, and partnerships is needed. DRAF T AGENDA ITEM #1. c) 8 A Plan for Action As a result of the comprehensive process and impending results, the Division will begin the process of implementing strategies and aligning resource allocation with newly developed objectives. These efforts are intended to set direction and to guide resource allocation and service provisions while creating service sustainability for the organization. The Plan is organized into five overarching Focus Areas: Focus Area One: Vision for the Future Focus Area Two: Program Distribution and Disparity Focus Area Three: Resource Allocation Focus Area Four: Services Assessment Focus Area Five: Evaluation and Implementation There are 44 strategic objectives within the Plan; each has been developed specifically to address issues and opportunities identified to advance the Plan’s five Focus Areas. Each objective is categorized into one of the following implementation timeframes: Short-term Mid-term Long-term Ongoing DRAF T DRAF T AGENDA ITEM #1. c) 9 II. Context The RND is responsible for a variety of services to the community including indoor and outdoor recreation programs, neighborhood grants and engagement, events and recreation building management. Its core services are essential in enhancing quality of life for the residents of Renton by providing facilities for self-directed and organized recreation, positive alternatives for youth, and activities that encourage social connections, human development, and lifelong learning. More than 200 unique programs annually serve over 15,000 registered participants. Many more are served through the numerous free and drop-in program options provided at RND managed buildings such as the Renton Community Center, the Henry Moses Aquatic Center, the Renton Senior Activity Center and the Highlands Neighborhood Center. Each of these assets provides the opportunity for development of body, mind, and spirit through open play and programmed activities. RND Financial Snapshot The City of Renton adopts a biannual budget, the most recent being FY 18-19 and 19-20. The General Fund is the primary operating fund, which accounts for all financial and general government revenues and expenditures. Provided below is a snapshot of the Division’s most recent general fund budget information. Table 1: FY16-20 Year Over Year Budget The RND actual total expenditures of for FY18 was $6.3 million. This is 20.1% of the total Department of Community Services operating expenditures. FY18 revenue actuals were $2.4 million. This represents a current cost recovery of 38 percent. Resource Allocation is particularly important now as the long-term effects of COVID-19 include a shortage of tax revenue that will eventually impact all agencies — some sooner than later. Informed resource allocation decisions give agencies flexibility and durability in evolving situations like the one we are in right now. Resource allocation must be done carefully, with information and insight, so that agencies can recover appropriate costs without compromising essential services to the widest public. Resource allocation needs to be thoughtful, deliberate and based on understanding — not reactionary. This plan aims to provide relief and stability that permeate all other processes. DRAF T AGENDA ITEM #1. c) 10 Today’s Resident Trends emerge from analyzing data, which can inform decision making and resource allocation strategies. This demographic profile was compiled in June 2020 from a combination of sources including the ESRI Business Analyst, American Community Survey, and U.S. Census. EDUCATION INCOME 8% No High School Diplomas 22% High School Graduate 31%39% Some College Bachelor’s, Grad/Prof Degree $80,422 $40,761 $119,957 Median Household Income Per Capita Income Median Net Worth Hispanic/Latino/Spanish White Black/African American Pacific Islander Two or More Races Asian Other 13.95% 48.25% 11.25% 25.63% .82% 6.4% 6.67%Unemployment Rate 65% 19% 17%Services Blue Collar White Collar 2019 RACE/ETHNICITY EMPLOYMENT 4.1% KEY FACTS 106,392 37.2 41,052$64,718 Population Median Age HouseholdsMedian Disposable Income Figure 1: Renton Demographic Overview Source: ESRI Business Analyst, U.S. Census DRAF T AGENDA ITEM #1. c) 11 POPULATION SUMMARY Growth rates can be a strong comparative indicator of an area’s potential for economic development. From 2010 to 2019, the population of Renton grew an average of 1.58 percent annually, slightly faster than the State of Washington at 1.34 percent. From 2019 to 2024, the growth rate for the City of Renton is projected to slow from 1.58 to 1.35 percent, still a projection of significant growth. If this projected growth rate of 1.35 percent continues, the population could reach 126,403 people in 2032. Figure 2: Projected Population Trends from 2000 to 2032 AGE DISTRIBUTION Between 2010 and 2024, the median age in the City of Renton is projected to increase from 35.3 years of age to 37.6. Looking at the population age breakdown by five-year increments in the Figure below, shows an evenly strong representation of children up to 15 years old, making up roughly 6.7 to 6.8 percent for each of the five-year age groups. The most populous age group are those between 35 and 39 years old, making up 8 percent of the population. Age representation continues to decline steadily after age 40. Figure 3: 2019 Age Distribution in RentonSource: ESRI Business Analyst, U.S. Census Source: ESRI Business Analyst, U.S. Census AGENDA ITEM #1. c) 12 RACE/ETHNIC CHARACTER In the United States, communities are generally becoming more diverse. Before considering this data, it is important to note how the U.S. Census classifies and counts individuals who identify as Hispanic. Hispanic origin can be viewed as the heritage, nationality, lineage, or country of birth of the person or the person’s parents or ancestors before arrival in the United States. People who identify as Hispanic, Latino, or Spanish are included in all of the race categories. Figure 4 reflects the approximate racial/ ethnic population distribution. • The City is made up of 48.6 percent White/Caucasian residents, more diverse than the State of Washington that is roughly 73.1 percent White/Caucasian. • Renton has a roughly 25.6 percent of residents that identify as Asian, and 11.3 percent identify as African American. About 14 percent identify with being of Hispanic Origin, irrespective of race. Figure 4: 2019 Racial/Ethnic Diversity of Renton HOUSEHOLD DATA • The median household income in Renton in 2019 was $80,422. • The median home value in Renton was $423,156, significantly higher than the median home value of Washington ($370,055) and the United States ($234,154). • The average household size was 2.58 in Renton, compared to 2.53 in Washington, and 2.6 in the United States. • Approximately 11.9 percent of households in Renton received food stamps in 2019, just below the rate in Washington at 13.28 percent. 10.27 percent of City residents are considered below the poverty level. • Approximately 20.5 percent of residents live with some sort of hearing difficulty, vision difficulty, cognitive difficulty, ambulatory difficulty, self-care difficulty, and/or independent living difficulty. This is just slightly lower than the national average (25%). Source: ESRI Business Analyst, U.S. Census DRAF T DRAF T AGENDA ITEM #1. c) 13 Table 2: Recreational Expenditures in City of Renton, Washington Recreation Behavior and Expenditures of Renton Households The changing pace of today’s world requires analyzing recreation trends from both a local and national level. Understanding the participation levels of city residents using data from the U.S. Census Bureau, combined with research of relevant national recreation trends, provides critical insights that help to plan for the future of parks and recreation. These new shifts of participation in outdoor recreation, sports, and cultural programs are an important component of understanding and serving community. See Appendix A for National Recreation Trends. Local Recreational Expenditures Data from the Bureau of Labor Statistics provides insights about consumer expenditures per household in 2019. The following information was sourced from ESRI Business Analyst, which provides a database of programs and services where City of Renton residents spend their money. The table below shows the average dollars spent on various recreational products/services. Money spent on fees and admissions related to entertainment and recreation generated the highest revenues of $36.5 million in the City of Renton. Source: ESRI Business Analyst DRAF T AGENDA ITEM #1. c) 14 Figure 5: Fitness and Wellness Participation of City of Renton compared to the State of Washington Fitness and Health Behavior The figure below shows household participation in various fitness activities. Participation was highest for the following activities: • Walking for Exercise (25.5%) • Swimming (16.8%) • Weight Lifting (12.2%) Team Sport Participation According to census data, households in City of Renton had the highest participation in basketball (8.7%), football (5.0%), and soccer (4.8%). Figure 6: Team Sport Household Participation in City of Renton compared to State of Washington Source: ESRI Business Analyst, U.S. Census Source: ESRI Business Analyst, U.S. Census DRAF T DRAF T AGENDA ITEM #1. c) 15 Outdoor Recreation Participation According to census data, households in City of Renton had the highest participation in jogging/running (14.7%), hiking (13.5%), and camping (12.3%). Figure 7: Outdoor Recreation Household Participation in City of Renton compared to State of Washington Source: ESRI Business Analyst, U.S. CensusDRAF T AGENDA ITEM #1. c) 16 THIS PAGE IS INTENTIONALLY LEFT BLANK DRAF T DRAF T AGENDA ITEM #1. c) 17 III. Vision for the Future An organization’s values are comprised of the City’s leadership values, staff values, and community values. Values direct the organization’s vision and help determine those community conditions the organization wishes to impact through the organizational mission. The organization’s mission helps guide management decisions, often substantiating difficult decisions, making them justifiable and defensible. The following Vision and Mission guide the City of Renton and the Community Services Department. These statements inform the process and frame the development of implementation goals for the short-term, mid-term, and long term. City of Renton VISION The center of opportunity in the Puget sound Region where families and businesses thrive MISSION The City of Renton, in partnership and communication with residents, businesses and schools, is dedicated to: • Providing a safe, healthy, welcoming atmosphere where people choose to live • Promoting economic vitality and strategically positioning Renton for the future • Supporting planned growth and influencing decisions that impact the city • Building an inclusive informed city with opportunities for all • Meeting service demands through high quality customer service, innovation, a positive work environment and a commitment to excellence Department of Community Services MISSION Promote and support a more livable Renton community by providing recreation, museum, human services programs, neighborhood and special events opportunities, golf course and modern parks and facilities, and undisturbed natural areas. RND Vision, Mission, Values, and Strategic Goals Thoughtful discussion, probing, and consideration of planning outcomes, led to a desire to refine the Division’s vision and mission, and the need to develop strategic goals. The value of neighborhood engagement and its role in supporting the City of Renton’s livability goals became key components in strengthening and defining RND’s direction for the future. The following Vision, Mission, Values and Strategic Goals are the result of input from a facilitated workshop with Division staff coupled with RND’s expressed desire to build community connections, improve quality of life for all Renton residents, leverage relationships and expand programming opportunities. DRAF T AGENDA ITEM #1. c) 18 Recreation and Neighborhood Services Division VISION Enhance our community’s quality of life, by connecting Renton’s diverse population through shared experiences. MISSION Develop and build an active, vibrant, and socially connected community through programming, opportunities, and well-managed resources, to help strengthen the well-being of our community. Tagline: Creating an active, vibrant, connected community. VALUES• Health and wellness • Accessibility • Equity • Creating memories • Partnerships • Play • Customer Service PROPOSED STRATEGIC GOALS • Steward the efficient and equitable use of financial resources • Provide effective, well-organized services to residents, backed by best practices, regardless of income, background, or ability • Adapt innovative programs and facilities to be reflective of public interests and relevant to current circumstances The Value of Community Engagement Meaningful engagement fosters community connections and contributes to a sense of wellbeing and inclusion. With an increasingly diverse and complex demographic in Renton, the importance of effective and genuine engagement and collaboration is essential. Recognizing service gaps, while building staff competencies and developing engagement resources is essential to understanding the needs of the community, ultimately to best serve them. For more than 20 years, the City of Renton Neighborhoods Program has focused on establishing relationships with neighborhoods. Over the years the program has faced a variety of hurdles and has had to reinvent itself. In 2018, the Neighborhoods Program was transferred to RND, where division staff and leadership recognized the opportunity to transform how the division engages with Renton’s wide variety of neighborhood communities. Today, The Neighborhood Program is committed to improving quality of life standards for all in Renton. Using a dedicated neighborhood grant budget, the Neighborhoods Program exists to implement and support initiatives that are designed to improve physical and social livability standards for all Renton communities. Through community collaboration, Neighborhood Program staff are dedicated to creating experiences that: • Make Renton a great place to live, work, and play • Create access to health and recreation opportunities • Celebrate our community through unique educational, cultural, and recreation-based programming, that connect all walks of life • Offer residents and neighborhood organizations an opportunity to be a part of and influence RNDs decision making processes • Create opportunities to improve neighborhood communities physical and social well-being • Support neighborhoods and its residents in the navigation of City government DRAF T DRAF T AGENDA ITEM #1. c) 19 Engagement Strategies Developing a standardized engagement model for RND is necessary to maintaining two-way, balanced and effective, high-quality, community engagement. The International Association for Public Participation (IAP2) is the leading professional organization advancing the practice of public participation globally. IAP2 has long offered valuable resources that demonstrate how and when to engage, and provide insight into the principles behind effective community engagement. IAP2 has developed the Spectrum of Public Participation to help clarify the role of the public in the project planning and decision-making process. Used in most community engagement manuals the IAP2 Spectrum has been a powerful tool used by engagement professionals for over 25 years. The framework differentiates between the various levels of participation depending on the project goals, time frames resources and level of concern or priority. The IAP2 spectrum includes five levels of public participation: Inform, Consult, Involve, Collaborate and Empower. Supporting Livability for All Well-designed, age-friendly communities foster economic growth and make for happier, healthier residents of all ages. Through two nationwide livability initiatives, the Network of Age-Friendly Communities and the Livability Index, AARP supports the efforts of neighborhoods, towns, and cities to become great places for people of all ages. As member of AARP Network of Age-Friendly Communities, the City of Renton is committed to providing a livable community where all generations have value, thrive and age with respect. The common thread among the enrolled communities is the belief that the places where we live are more livable, and better able to support its residents, when local leaders commit to improving the quality of life for the very young, the very old, and everyone in between. The AARP Livability Index helps communities measure how well they are meeting the needs of residents in the areas that impact quality of life. It scores neighborhoods and communities across the U.S. for the services and amenities that impact life the most. This important resource helps communities assess how well they’re meeting the needs of people as they age. The Livability Index is a web-based tool developed to measure community livability on a scale of 0 to 100, with higher scores representing greater livability. It scores communities on a broad range of community features and characteristics within seven categories: housing, transportation, neighborhood, environment, health, engagement, and opportunity. The index measures 40 metrics and 20 policies in every neighborhood and community across the country. The metrics tell a community’s story, giving a snapshot of current conditions, while policies show a community’s potential to improve its livability. Renton’s AARP’s livability score is 56. The average score for communities is 50. The overall livability score is important, but the key to understanding and using the index lies in how communities score within each category. The metrics for each category are averaged together, to calculate the score, and a bonus point is awarded for each policy in place. RND can directly influence and support four of the seven categories that comprise a community’s score: Neighborhood, Health, Engagement, and Opportunity. IAP2 Spectrum of Public Participation © IAP2 International Federation 2018. All rights reserved. 20181112_v1 To provide the public with balanced and objective information to assist them in understanding the problem, alternatives, opportunities and/or solutions. We will keep you informed. PUBLIC PARTICIPATION GOALPROMISE TO THE PUBLICINFORM To obtain public feedback on analysis, alternatives and/or decisions. We will keep you informed, listen to and acknowledge concerns and aspirations, and provide feedback on how public input influenced the decision. CONSULT To work directly with the public throughout the process to ensure that public concerns and aspirations are consistently understood and considered. We will work with you to ensure that your concerns and aspirations are directly reflected in the alternatives developed and provide feedback on how public input influenced the decision. INVOLVE To partner with the public in each aspect of the decision including the development of alternatives and the identification of the preferred solution. We will look to you for advice and innovation in formulating solutions and incorporate your advice and recommendations into the decisions to the maximum extent possible. COLLABORATE To place final decision making in the hands of the public. We will implement what you decide. EMPOWER IAP2’s Spectrum of Public Participation was designed to assist with the selection of the level of participation that defines the public’s role in any public participation process. The Spectrum is used internationally, and it is found in public participation plans around the world. DRAF T AGENDA ITEM #1. c) 20 Focus Area One Objectives: Vision for the Future This focus area is intended to set direction for the next five to ten years through strengthening the Division mission and vision and defining strategic goals. Emphasis has been placed on supporting Renton livability goals by building community through engagement at a Division level. Focus Area One: Vision for the Future 1.1 Consider updating Division title to adjust the emphasis on “Neighborhoods” to the broader designation “Community.” The term Community is a more comprehensive term which aims to encompass all Renton residents. 1.2 Adopt proposed Division Vision, Mission and Strategic Goals 1.3 Refine, reestablish, and integrate goals of the Neighborhoods section into Division workplan. Support Renton livability goals by building community through engagement as a Division wide effort. 1.4 Establish terms and concepts for community building and develop protocols for how and when engagement is leveraged and applied through the Division. 1.5 Establish terms and concepts for community building and develop protocols for how and when engagement is leveraged and applied through the Division. 1.6 Improve engagement in community areas that lack social connection. 1.7 Create unique opportunities for neighborhood revitalization initiatives designed to improve social and service environments. 1.8 Activate community areas including parks, neighborhoods, community centers, schools, etc., with health centric programs, events, and resources 1.9 Increase community partnerships to better support, assess, and assist with programs and initiatives that help improve neighborhood health conditions Table 3: Focus Area One Objectives DRAF T DRAF T AGENDA ITEM #1. c) 21 IV. Program Distribution & Disparity Providing access to parks and recreational opportunities to all members of a community is a critical opportunity for enhancing social sustainability within a community. As a concerted part of the Parks and Recreation Strategic Plan, the City sought to conduct a data-driven analysis to determine if RND’s current distribution of programs provides equitable access. To answer this question, gaps in recreation services must be identified. Addressing gaps ensures that all community members have access to the many great benefits that RND offers. Specifically, this assessment aims to provide knowledge which can be used to help minimize gaps in service over the next five to ten years by informing priority opportunities for programming. Data Collection and Methods of Assessment A program analysis was conducted using information gathered from the Services Assessment that was completed as part of this plan. The analysis is based on FY18 programs that required registration. The analysis does not consider how many times a program is offered, it instead evaluates the Category of Service, program location, and target audience. Registration does not require a person to provide household income or race demographic data. Therefore, only age-based assertions about differences in service levels can be recognized. Drop-in programs and public events were excluded from the analysis. The mapping patterns and trends found helped to understand relationships between access to recreation programs and age. This approach contributes new knowledge and awareness to the City’s understanding of where gaps exist within recreation programs. DRAF T AGENDA ITEM #1. c) 22 Program Distribution by Planning Area The City of Renton and its potential annexation areas are divided into ten geographically distinct Community Planning Areas. Community Planning Areas share community identity, schools, existing infrastructure, and physical features. One hundred and forty-two program types were sorted by Community Planning Area. Many of these programs are offered on an on-going or seasonal bases. Figure 8 represents the number of program types occurring in each Community Planning Area. Figure 8: RND Program Distribution Map DRAF T DRAF T AGENDA ITEM #1. c) 23 Table 4: Program Distribution by Community Planning Area Recreation programs are available in only six of the ten Community Planning Areas. Most programs are offered in RND operated facilities. This has limited RND’s reach beyond City Center, Cedar River and Highlands. Table 4 reflects the percentage of programs offered in Community Planning Areas. Program Distribution by Development Stage Between 2010 and 2024, the median age in the City of Renton is projected to increase from 35.3 years of age to 37.6. Population age breakdown shows children up to 18 years old, making up 25.8 percent of the population. The most populous five-year age group are those between 35 and 39 years old, making up 8 percent of the population. Age representation declines steadily after age 40. For the purposes of this study programs were sorted into nine age groups, or development stages. The 142 program types identified through the Services Assessment process were categorized into one of the following stages: • Two and under • Three to five • Six to twelve Table 5: Program Distribution by Development Stage • Teen • 18+ • 50+ • All Ages • Family Table 5 reflects the percentage of FY18, RND program types by age or development stage. Currently, 31 percent of RND program types are specifically designed for participants under 18, and 28 percent are designed for participants over 50. Incorporating Categories of Service and location into the analysis provides additional perspective on how and where participants are being served. The data shows most program opportunities for participants under 18 are offered in Cedar River or Highlands, while programs for participants over 50 are predominantly held in City Center. The most diverse portfolio of programs is in Cedar River. Table 6 represents the Categories of Service by Community Planning Area. Benson Cedar River City Center Highlands Kennydale Valley DRAF T AGENDA ITEM #1. c) 24 Table 6: Categories of Service by Community Planning Area 22 Count by Category of Service Benson 3 Adult Leagues 1 Adaptive Recreation 1 Programs for Youth 1 Cedar River 63 Adaptive Recreation 5 Adult Fitness 5 Adult Leagues 3 Adult Programs 3 Private Lessons 2 Programs for Infant to Pre-K 9 Programs for Seniors 2 Programs for Teens 5 Programs for Youth 24 Rentals 2 Youth Athletics 2 Youth Leagues 1 City Center 46 Adaptive Recreation 5 Adult Leagues 1 Adult Programs 1 Partnered Social Services 12 Programs for Seniors 27 Highlands 12 Adaptive Recreation 2 Programs for Teens 4 Programs for Youth 3 Summer Day Camps 1 Youth Athletics 2 Kennydale 18 Adult Fitness 2 Adult Programs 3 Aquatics - Beaches (Coulon and & Kennydale) 1 Programs for Infant to Pre-K 4 Programs for Youth 8 Valley 1 Adaptive Recreation 1 Grand Total 143 DRAF T DRAF T AGENDA ITEM #1. c) 25 Building an Inclusive City The growth of Renton’s minority populations (up 165% from 2000-2010) was a major “wakeup” call for city staff and elected leadership. In recognition of these changing demographics, top city officials, proposed “Building an Inclusive City,” an initiative that would ensure all constituents have equal access to city services and equal opportunity for civic engagement. The mission statement in the city’s strategic business plan has been revised to include inclusion and diversity and the following goals were added: Improve access to city services, programs, and employment Make residents and businesses aware of opportunities to be involved with their community Build connections with all communities that reflect the breadth and richness of the City’s diversity Promote understanding and appreciation of the city’s diversity through celebrations and festivals Provide critical and relevant information on a timely basis and facilitate 2-way dialogue between city government and the community To support these goals the RND must assess its own internal capabilities regarding inclusion. Through improving access to recreation programs and the development of a robust scholarship programs RND can support the City’s goal of ensuring fair access to City services. By utilizing technology and analyzing reports on which demographics are participating in which programs, RND will be better able to see what is needed to serve the entire community. Community Health and Wellness Understanding the conditions of the community’s health can help inform policies related to recreation and fitness. In 2019, the United Health Foundation’s America’s Health Rankings Annual Report ranked Washington as the 9th healthiest state nationally. The Robert Wood Johnson Foundation’s, County Health Rankings ranked King County second of 39 Washington Counties for Health Outcomes. In stark contrast to this, the 2019 Seattle-King County, State of Play study found on the whole that few area youth are active enough. The study conducted by the University of Washington’s Center for Leadership in Athletics in partnership with King County Parks and The Aspen Institute found that less than 19 percent of youth in King County meet the Centers for Disease Control (CDC) recommended 60 minutes of physical activity a day. This figure is well below the national average and expected to decline further. Nationally 35 percent of boys and 18 percent of girls meet the CDC’s recommendations for physical activity. As a result of the State of Play study, the King County Play Equity Coalition was formed. The King County Play Equity Coalition aims to increase the rates of King County youth meeting the CDC’s Physical Activity Guidelines through policies and programs. RND can support the Coalition’s work by further evaluating the percentage of community youth it is serving. Additional analysis that considers all program offerings, registration numbers and where current participants reside will provide a greater understanding on RND’s reach and how division resources should be allocated Program Delivery through Partnerships As Renton grows and develops, the demand for new facilities and services will continue to increase, along with constraints on resources. New partnership opportunities will need to be explored to address community needs and deliver services in a sustainable and cost-effective way. Cultivating partnerships will increasingly allow for opportunities to broaden services, leverage expertise, and expand reach into the community. Openness to innovative service delivery models and facility development approaches will offer flexibility and efficiencies. A sample Administrative Policy for Partnership and Partnership has been provided as a staff document. DRAF T AGENDA ITEM #1. c) 26 Focus Area Two Objectives: Program Distribution and Disparity Equitable access is grounded in the belief that everyone has the right to participate in and benefit from recreational opportunities. Barriers to recreation will be reduced through providing opportunities for people who are not currently participating, and by developing programs that are responsive to the needs of communities of people. Inevitably, there will be challenges to being able to accomplish the goals related to reducing disparity. In its 2018 Parks and Recreation Inclusion Report, the National Recreation and Parks Association found that the two highest ranked challenges to keeping services from being accessible to all were insufficient funding and inadequate staffing. Providing both financial and staffing resources to RND, supporting the development of a diverse portfolio of programs, and adopting administrative policies which give all residents opportunities to participate will improve access to quality programming for all residents within Renton for years to come. Focus Area Two: Program Distribution and Disparity 2.1 Expand recreational opportunities in new and existing locations beyond the core of the City to fill gaps in service and keep pace with future growth. 2.2 Identify and reduce participation barriers for youth and lower income households. Consider developing a scholarship fund and program with stream-lined eligibility requirements. 2.3 Develop an outdoor recreation program to offer more formal recreation and wellness services in parks. 2.4 Continue to evaluate the current scope of youth programing. Determine if growth, or the redirection of division resources will better serve the community in supporting the health and wellness needs of area youth. 2.5 Support program delivery through partnerships. Develop recreational programs through public agencies, non-profit organizations, and private businesses. 2.6 Provide meaningful opportunities for public engagement, particularly, with groups who are often underrepresented. 2.7 Expand the use of the recreation registration software system, PerfectMind, to gain additional information on current participants. This data will also assist in developing a profile of who is and is not being reached by RND services. This will provide a data driven, targeted approach to service delivery. Table 7: Focus Area Two Objectives DRAF T DRAF T AGENDA ITEM #1. c) 27 V. Resource Allocation Responsible stewardship of resources also includes the creation and maintenance of affordability, fairness, and equity in the system. This requires pro-active planning and a business tool designed around these principles, yet one that addresses a much more comprehensive picture than just pricing. Although fee adjustments are likely, the goal is not to simply generate new revenues through fees, but to ensure a sustainable system into the future by using tax revenues and fees in the most appropriate ways, supplemented where possible by grants, donations, partnerships, and other sources of alternative revenues. The Pyramid Methodology The Pyramid Methodology used in development of the model is built on a foundation of understanding who is benefiting from park and recreation services to determine how the costs for service should be funded. A full description of the pyramid model is found in Appendix B. The model illustrates a pricing philosophy for establishing fees commensurate with a target subsidy level based on the benefit received. Descriptions regarding each level of the pyramid are provided; however, the model was used initially as a discussion point and was very dependent on values of the Renton community to determine what programs and services belong on each level. Cultural, regional, geographical, and resource differences play a large role in this determination, making the resulting pyramid unique to each agency that applies this methodology. A consensus pyramid was created with each Category of Service placed in the appropriate tier of the pyramid based on the benefits filter and other filters. All Categories of Service with a full description and listing of programs and services within can be found in Appendix C. Current resource allocation percentages were calculated based on a specific and consistent definition of direct and indirect costs identified during this process. DRAF T AGENDA ITEM #1. c) 28 Figure 9 is the Renton model. Through the use of the Pyramid framework, the model is populated with Categories of Services that make up the service portfolio of the Division. Categories are then placed on Tier levels according to the perceived balance of community and individual benefit. Actual subsidy levels for each category of service based on FY 19 are reported on the model as well as target subsidy levels that have been determined through the study. Figure 9: Renton Pyramid Model - FY18 Subsidy Levels and Targets for the Future Private Lessons: 71% above cost Private Leagues: N/A Merchandise for Resale or Vending / Concessions: 31% above cost Future Tier Target: 0% Subsidy and Minimum 51% above cost Adult Fitness: 5% above cost Rentals: 207% above cost Adult Leagues: 42% above cost Creative Kids Preschool: 14% above cost Adult Programs: 14% Future Tier Target: Max 9% Subsidy and Up to 50% above cost Events - Organized by the City : 100% Events - Permitted by the City: 98% Neighborhood Programs - 100% Aquatics - Beaches (Coulon and & Kennydale):100% Future Tier Target: 90-100% Subsidy Public Safety Education: 100% Internal Services: 100% Partnered Social Services: 100% Future Tier Target: 60-89% Subsidy Programs for Youth (5-14 years): 8% Programs for Teens (13-19 years): 20% Programs for Infant to Pre-K: 35% Programs for Seniors: 58% Summer Day Camps: 15% Youth Athletics: 23% Youth Leagues: 25% Adaptive Recreation: 65% Drop-in Programs/One-time use: 38% Out of School Time Programs: 50% Future Tier Target: 10-59% Subsidy DRAF T DRAF T AGENDA ITEM #1. c) 29 RND Direct and Indirect Cost Definition No measurement of subsidy level or cost recovery is possible without a clear definition of what is being counted as “cost.” For the study, RND established definitions for direct and indirect costs of programs and services. DIRECT COST Includes all the specific, identifiable expenses (fixed and variable) associated with providing a service or program. These expenses would not exist without the program or service and often increase exponentially. 65% of all Recreation Supervisor salaries and benefits 75% of all full-time staff salaries and benefits from Recreation Coordinator down Supplemental staff Contractual services for coaches, officials, instructors, etc. Consumable equipment and supplies like ping pong balls, chalk, food, paper Uniforms, tee shirts, for participants and staff Non-consumable equipment purchased only for the program like yoga mats, blocks, bouncy balls, basketballs, low free weights, racquets and goggles Training specifically for the program or service like CPR and First Aid Transportation costs like van driver and mileage, parking, tolls, etc. Entry fees, tickets, admissions for participants and leaders/instructors Any other costs associated or attributed specifically with the program or service INDIRECT COST Includes expenses (fixed and variable) associated with providing a service or program but are shared expenses among programs and services. (Cannot be tied specifically to one program.) Full-time, part-time, and seasonal employees that primarily perform administrative duties for the department such as Director, Superintendent, etc., and corresponding benefits Other full-time, part-time, and seasonal employees that perform some support services for the department such as working on strategic planning initiatives (percentage directly related to support services) and corresponding benefits Utilities for the facility such as water, electric, and solid waste Other overhead costs as deemed appropriate Building alarm monitoring Safety equipment and supplies such as fire extinguishers, AEDs, and first aid Any other costs associated or attributed specifically with a facility or park General consumable equipment, office supplies and maintenance supplies like paper, toner, toilet paper, mops, cleaning supplies Repair or maintenance of department- wide equipment like copier maintenance agreement Various other appropriated costs DRAF T AGENDA ITEM #1. c) 30 Focus Area Three Objectives: Resource Allocation The intent of this focus area is to develop targets and a timeframe for identifying resource allocation goals. Over the past year Team Members have completed a very comprehensive and intense process of developing a best practice business tool, known as The Pyramid Methodology. This will now live within the RND for ongoing use as an established underlying philosophy and provide direction for much more defensible and consistent application. This work was facilitated to ensure the integrity of the tool and challenge Team Members in its proper use. After an introduction and training, Team Members articulated and refined the menu of programs, services, and activities currently provided by the Division; categorized those into like groupings; and worked with the public to sort each category of service into one of five pyramid levels, representing a well-defined continuum of a shifting balance of community and individual benefit. Specific objectives from this process follow: Table 8: Focus Area Three Objectives Focus Area Three: Resource Allocation 3.1 Seek approval of the proposed Resource Allocation Policy by the Parks Commission and City Council. Recommended policy language is provided in Appendix C. 3.2 Recognize the RND Resource Allocation Pyramid (Figure 1) as a fundamental component of the Resource Allocation philosophy. Using the specific definition of costs to be included in the measurement, the following targets ranges are recommended: 3.3 Ensure long-term sustainability by focusing taxpayer funding on those services producing the widest community benefit, using the pyramid. Consider return on investment, number of participants served, and cost per participant covered by tax revenues as criteria for evaluation of all services. 3.4 Explore available and potential tracking mechanisms and opportunities with the Finance and Human Resources Departments to expand ability to track expenses and labor at the program level. An administrative position to implement and maintain systems will be needed. This position would serve as a conduit between the Finance Department and RND, while working to strength business acumen with Division staff DRAF T DRAF T AGENDA ITEM #1. c) 31 3.5 Adjust fees to reflect the RND Resource Allocation philosophy, being sensitive to fee tolerance, and implementing over time, as necessary. Consider annual incremental price increases to keep up with rising costs, as necessary, allowing Team Members to respond to market conditions, opportunities, and service demands in a timely manner. Implement tier-specific recommendations keeping in mind that Cost Recovery is calculated only accounting for direct costs, which is not the full cost of providing any program or service. Tier 5: Mostly Individual Benefit (tier target Cost Recovery 151+%) • Considered increasing fees for Small Group Fitness to meet tier target. • Increase concession, vending, and merchandise for resale revenue 20 percent; 10 percent increase each year for two years. • If programming for Private Leagues is pursued ensure league is designed to meet tier target. Tier 4: Considerable Individual Benefit (tier target Cost Recovery 91-150%) • Some Adult Programs and Leagues fall below the tier target. Further evaluation of expenses and fees associated with these programs should be conducted. Incremental fee increases will likely be necessary if programs are continued. • Renton Sailing Club has no cost recovery. • Further assessment of the Rentals category is called for. Rentals in most cases are exceeding the tier target; however, better accounting of the direct cost incurred by other divisions is required to accurately identify the current cost recovery associated with this category. Tier 3: Balanced Individual and Community Benefit (tier target Cost Recovery 41%- 90%) • Most programs in the Senior Services category fall below the tier target. Incremental fees increase should be considered. • Overall cost recovery for youth programs, athletics, and leagues are meeting the tier targets. Incremental increases should be considered for programs falling under the 41% target. • Increase fees for Adaptive Recreation; three percent each year for the next four years. • Cost Recovery in Aquatics is high; however, further evaluation of employee cost and the direct cost incurred by other divisions is needed to accurately identify the cost recovery associated with the category. Tier 1: Mostly Community Benefit (tier target Cost Recovery 0%-10%) • Cost Recovery for the Permitted Special Events is 2%. Considered a tiered permit fee that is driven by estimated attendance. DRAF T AGENDA ITEM #1. c) 32 3.6 Review existing facility use policies, procedure and use applications to ensure consistency across the Division, to guarantee best practices are being used, and to assure full integration with the overall resource allocation philosophy. See Appendix I for examples of Facility Use Handbook. 3.7 Annually review all Intergovernmental Agreements (IGAs), Memorandums of Understanding (MOUs), rentals, and long-term Lease agreements to ensure compliance with Resource Allocation goals in relation to the direct cost to provide the service (the value) and the category of service level on the pyramid. Leverage negotiations and agreements based on actual costs and benefits. 3.8 Develop a Partnership Policy and philosophy to create equity and consistency while maximizing and leveraging resources of the Division. Distinguish partnerships from simple use agreements. The criteria for partnership should establish the premise of a true partnership with the Division with mutual goals and outcomes desired. Facility use costs should be addressed in the guidelines as a cost of the endeavor, and calculated as a value of what the City offers in the partnership. A partnership should not be represented first and foremost as a method of waiving or discounting fees. See Appendix H for Sample Administrative Policy for Partnership and Partnership Proposal Format. 3.9 Review the value of RND’s Resident Rate Policy and evaluate its application for consistency. Many agencies have found Resident Rate policies inhibit their ability to reach revenue goals or hinder participation numbers required to proceed with programs. If, the policy remains in place it is critical to ensure consistency in setting fees for program and service delivery to non-residents. 3.10 Implement the use of program planning sheets to identify subsidy based on class minimums. Subsidy level should align with associated tier target. 3.11 Engage the Facilities Department to explore tracking mechanisms, or reporting tools that will provide clarity on the direct cost associated with building and pool maintenance. This information is critical to understanding all cost associated with program delivery. DRAF T DRAF T AGENDA ITEM #1. c) 33 Suggested Policy Language for a Comprehensive Resource Allocation Policy As a publicly financed recreation system, the City of Renton, Recreation and Neighborhoods Division (RND) provides a basic level of recreation service for the public, funded by tax dollars. However, fees and charges and other methods to recover costs are considered a responsible and necessary means to supplement tax revenue. Critical to the success of service delivery is affordability, fairness, and equity. It is the intent of this policy to ensure that the approach in the use of tax dollars as well as alternative forms of revenue will result in these qualities. In establishing fees and charges, the RND will determine the costs of providing services based on an identified and consistently applied methodology including direct, indirect, and overhead costs. This calculated cost will be used to measure current and future levels of subsidy and to help establish appropriate subsidy goals to support services. The appropriate level of tax subsidy will be based on an assessment of who is benefiting from the service provided. If the benefit is to the community as a whole, it is appropriate to use taxpayer dollars to completely, or primarily fund the service. Examples of services that primarily provide community benefits are permitted events, events organized by RND, and beaches. The subsidy goals are used to establish and/or adjust fees to reach these goals. As the benefit is increasingly offered to an individual or select group of individuals, it is appropriate to charge fees for the service at a decreasing level of subsidy and an increasing rate of cost recovery. Supervised or instructed programs, facilities, and equipment that visitors can use exclusively, as well as products and services that may be consumed, provide examples where fees are appropriate. The Division shall also consider available resources, public need, public acceptance, and the community economic climate when establishing fees and charges. In cases where certain programs and facilities are highly specialized by activity and design, and appeal to a select user group, the Division shall additionally consider fees charged by alternative service providers or market rates. Fees and charges can be set to recover costs in excess of direct and indirect costs, where appropriate, as a method of subsidizing other services. The Division may further subsidize services for persons with economic need or other targeted populations, as determined by policy of the City Council, through tax-supported fee reductions, scholarships, grants, or other methods. The City Council may also approve exceptional fees or fee waivers upon determination the fee arrangements will benefit the public interest. DRAF T AGENDA ITEM #1. c) 34 THIS PAGE IS INTENTIONALLY LEFT BLANK DRAF T DRAF T AGENDA ITEM #1. c) 35 VI. Services Assessment The Public Sector Services Assessment is an intensive review of organizational services resulting in recommended provision strategies that can range from affirming or advancing market position, to enhancing service through investment, collaboration with others, and reducing or eliminating service. RND Team Members were trained by GreenPlay to use the Public Sector Services Assessment tool; to understand each service’s market segment and strength or weakness of its position within that market; and to identify alternative providers, core services, and optimal provision strategies. The Public Sector Services Assessment Based on the MacMillan Matrix for Competitive Analysis of Programs,1 the Public Sector Services Assessment is an intensive review of organizational services providing recommended provision strategies including, but not limited to, enhancement of service, reduction of service, collaboration, and advancing or affirming market position. This assessment includes an analysis of: each service’s relevance to values, vision, and mission; market position; other service providers in the area, including quantity and quality of provider; and the economic viability of the service. The Matrix is based on the assumption that duplication of existing comparable services (unnecessary competition) among public and non- profit organizations can fragment limited resources available, leaving all providers too weak to increase the quality and cost-effectiveness of customer services. It also assumes that trying to be all things to all people can result in mediocre or low-quality service. Instead, agencies should focus on delivering higher- quality service in a more focused (and perhaps limited) way. The Matrix helps organizations think about some very pragmatic questions. Q Is RND the best or most appropriate organization to provide the service? Q Is market competition good for the citizenry? Q Is RND spreading its resources too thin without the capacity to sustain core services and the system in general? Q Are there opportunities to work with another organization to provide services in a more efficient and responsible manner? 1 Alliance for Nonprofit Management Figure 10: Services Assessment MatrixDRAF T AGENDA ITEM #1. c) 36 Services Assessment Process The Division created a Service Menu listing each program, activity, or facility provided to the community. The next step in the process was to gather data about each program and service provided and research other providers of similar services in the market area for each service. This information was then used to answer questions to determine the fit, financial capacity, market position, and alternative providers for each service. This assessment allowed the determination of a recommended service provision strategy for each service. Identifying Core Services and Provision Strategies The Services Assessment required Team Members to answer a series of questions regarding “fit” with the mission and vision of the RND; community need; the “strength of its market position” for each of its services and programs; present credibility and capacity, and community awareness; the “financial capacity” of the service or program to be viable without the support of tax funding; and the presence of “alternative providers” in the market place. The resulting provision strategies for the Division identify: • Services to affirm or advance its market position. • Services to pursue collaboration. • Services for complementary development. • Services to invest in to change the market position. • Services to divest. Multiple strategies are sometimes highlighted through this process for particular services. This is because there are several variables at work potentially creating a weak market position an Agency may or may not be willing or able to change. Market position is determined by the current resources available (could the investment be increased?), the location of the service (could it be moved?), the track record and credibility of the Division (is there any momentum toward improvement?), technical skill (could training be provided?), and community awareness of the offering (could marketing efforts be increased?). An appropriate solution for some of the challenges might be collaboration, or it may be time for divestment. Provision Strategies Defined CORE SERVICE These services are “core” to satisfying the Division’s values and vision typically benefiting all community members, or are seen as essential to the lives of under-served populations. There are few if any alternative providers, yet the RND is in a strong market position to provide the service. However, there is not the financial capacity to sustain the service outside of taxpayer support, and the service is not deemed to be economically viable. AFFIRM MARKET POSITION The Services Assessment identified services in which a number of (or one significant) alternative provider(s) exists, yet the service has financial capacity, and the Division is in a strong market position to provide it to customers or the community. Affirming market position includes efforts to capture more of the market and investigating the merits of competitive pricing strategies. This includes investment of resources to realize a financial return on investment. Typically, these services have the ability to generate excess revenue. Niche positioning and messaging can be used as market strategy. ADVANCE MARKET POSITION The Services Assessment identified services in which a small number of (or no) alternative providers exist to provide the service, the service has financial capacity, and the Division is in a strong market position to provide the service. Primarily due to the fact that there are fewer, if any, alternative providers, advancing market position of the service is a logical operational strategy. This includes efforts to capture more of the market, investigating the merits of market pricing and various outreach efforts. Also, this service may be an excess revenue generator by increasing volume. DRAF T DRAF T AGENDA ITEM #1. c) 37 COMPLEMENTARY DEVELOPMENT The Services Assessment identified services in which the service is a good fit, a number of, or one, significant alternative provider(s) exists; the RND is in a strong market position to provide the service, yet it does not have financial capacity to fully develop the service. Complementary development encourages planning efforts avoiding duplication, yet broadening the reach of all providers. Although there may be perceived market saturation for the service due to the number of like services by alternative providers, demand and need exists, justifying the service’s continued place in the market. COLLABORATION The Services Assessment identified services in which the Division’s current market position is weak, and the service can be enhanced or improved through the development of a collaborative effort. Collaborative efforts, or partnerships, with other service providers (internal or external) can minimize or eliminate duplication of services while most responsibly utilizing Division resources. INVESTMENT The Services Assessment identified services where investment of resources is the Division’s best course of action as the service is a good fit with values and vision, and an opportunity exists to strengthen the current weak market position. DIVESTMENT The Services Assessment identified services where the Division has determined it is in a weak market position with little or no opportunity to strengthen its position. Further, the services are deemed to be contrary to the Division’s interest in the responsible use of resources, and are therefore being considered for divestment. Divestment not only includes the discontinuation of a program or service but perhaps a hand-off to another Division, or the purposeful nurturing of an entity to prepare to take on the service. DRAF T AGENDA ITEM #1. c) 38 Focus Area Four Objectives: Service Provisions The intent of this focus area is to avoid duplicative services in over-saturated markets which exhaust resources; identify and develop niche markets in response to service area needs; and advance the market position of the RND where services are financially sustainable through an appropriate use of tax dollars, fees, and other forms of revenue. The Division has pursued a best practice business tool, the Public Sector Services Assessment, for ongoing use within the Division. Working with an outside facilitator to challenge current thinking and make the best use of this tool, RND has, and will continue to consider service delivery mechanisms including affirming or advancing programs, complementing the efforts of other providers, collaboration and partnership, further investing, outsourcing, or divestiture to maximize efficiency, effectiveness, and best use of resources. Building on the introduction and training provided, Team Members identified their menu of programs and services, evaluated each for fit, financial capacity, market strength, and alternative coverage, and defined and identified “core services.” Ongoing efforts will include use of the tool on an ongoing basis to address changes in the marketplace and Division resources, and to evaluate provision of a potential new program, service, or activity. More specific objectives resulting from this evaluation follow: Table 9: Focus Area Four Objectives Program Distribution and Equity 4.1 Use the Public Sector Services Assessment as the foundation for business planning for programming efforts, articulating the philosophy and process in a Business Plan approach. Update the services assessment and review portfolio of services annually. Tie review appropriately to budget preparation schedule. 4.2 Establish and adhere to evaluation criteria, such as minimum enrollment, program lifecycle status, and waiting lists, for making decisions as to holding, continuing, or expanding a program and require annual reporting regarding that criteria, for longer term decision- making purposes. Monitor registration, attendance figures, and Resource Allocation goals on an ongoing basis. Cancel and replace under-performing services. • Forecast impacts of changes to be made to programs prior to decisions being made to do so, evaluating for economic, social, and environmental sustainability. This is particularly important when considering adding new programs during the budget process. • To ensure an apples-to-apples comparison, calculate cost per contact hour for both Division programs and those of alternate providers. DRAF T DRAF T AGENDA ITEM #1. c) 39 4.3 Implement service provision strategies identified through the Services Assessment. Core Services Continual evaluation for efficiencies and effectiveness in providing these services is paramount. RND Core Service’s include the following: • Nearly all programs in tier one and two of the RND Resource Allocation Pyramid were identified as a Core Services. Some tier three programs geared towards Seniors and Youth were identified as Core Services. Affirm Market Position Twenty-eight programs were identified as Affirm Market position. These programs were primarily tier three services. Affirming market position includes efforts to capture more of the market through existing sites and investigating the merits of competitive pricing strategies. This includes investment of resources to realize a financial return on investment. Typically, these services have the ability to generate excess revenue. Niche positioning and messaging can be used as market strategy. Advance Market Position A large number of RND services were identified as Advance Market Position. Advancing market position includes efforts to capture more of the market, investigating the merits of market pricing and various outreach efforts. Also, this service may be an excess revenue generator by increasing volume (particularly to fill current capacity). More specifically: • Capitalize on RND strong market position for these services by increasing offerings as demand dictates. Complementary Development Complementary development encourages planning efforts avoiding duplication, yet broadening the reach of all providers. Complementary development was indicated for the following programs: • Specialized Recreation - Bowling Club • Specialized Recreation - Flag Football • Specialized Recreation - Golf Club • Specialized Recreation - Soccer • Specialized Recreation - Track & Field • Water Aerobics • Basketball Leagues - Men’s • Kickball- Adult Leagues • Community Garage Sale • Open Swim - Beaches Collaboration, Investment or Divestment Collaborative efforts, or partnerships, with other service providers (internal or external) minimizing or eliminating duplication of services, while most responsibly utilizing Division resources are recommended. Investment may be in order if an opportunity exists to DRAF T AGENDA ITEM #1. c) 40 strengthen the current weak market position. Divestment may be in order if collaboration or investment are not considered or successful. This can occur by discontinuing a service or handing off the service to others. More specifically: • Collaborate, or Divest was identified for a number of Specialized Recreation programs. Services provided by the Specialized Recreation section have evolved over time. Clarity on the sections goals and objectives are necessary to determine which services are a good FIT for the division. • Collaborate or Divest was also identified for a small number of programs in various categories. DRAF T DRAF T AGENDA ITEM #1. c) 41 VII. Evaluation & Implementation As a result of the comprehensive process and impending results, as illustrated in the Resource Allocation Pyramid Model, RND will begin the process of implementing strategies and aligning financial resource allocation with newly developed goals. These efforts are intended to guide goals and objectives, and decision-making proven to create service sustainability for the division. This first-year implementation will allow communication of the philosophy and policy, and adjustment of fees as indicated by the Model. It will also allow for staff and City Council to see the implications on overall cost recovery; identify any currently unknown market, historical, and political filters; and allow staff to experience using the methodology. The best results come after frequent analysis of data, both short term and long term. Developing a Pricing Strategy Pricing of services must be done on a service-by-service basis. As the final step in the development of the comprehensive Resource Allocation Policy, pricing strategies were considered. This discussion should continue in the future, and the following topic areas should be included and applied. Understanding Financial Trends The increasing complexity and resulting shifts of our society’s economy have led to what can be deemed as constant fiscal change in government. Public sector administrators and managers must be prepared to respond to the fiscal realities that have resulted from these economic shifts. Trends impacting fiscal and pricing decisions include: • Increased governmental accountability • Increased demand for people’s “leisure dollar” • Ongoing or increased demand for services with no/limited additional funding, or decreased funding • Disinterest in service reductions or increased fees and charges • Increased operating expenses (utilities, fuel, personnel, supplies, etc.) DRAF T AGENDA ITEM #1. c) 42 Understanding the Budget Process and Fiscal Year Cycle Budgets are viewed as annual financial plans and include planning and forecasting, establishing priorities, and a way to monitor fiscal process. This overview allows for an abbreviated look at the process and how it is impacted by pricing. Understanding the Costs of Service Provision Prior to making pricing decisions, it is important to understand the different types of service provision costs. Having knowledge of the various types of costs allows staff to make better informed pricing decisions. The different types of service provision costs are as follows: • Direct costs Fixed costs Changing fixed costs Variable costs • Indirect Costs Understanding the Purpose of Pricing There are many reasons to develop service fees and charges. These include, but are not limited to, the following: • Recover costs • Create new resources • Establish value • Influence behavior • Promote efficiency Alternative Funding Sources In general, there has been a decrease in the amount of tax support available to public Parks, Recreation, and Senior Services agencies across the nation. The Divisions are forward thinking in their planning. As such, the need to look at alternative funding sources as a way to financially support services has become commonplace. Alternative funding sources are vast and can include: • Gifts • Grants • Donations • Scholarships • Sponsorships • Collaborations • Volunteer contributions DRAF T DRAF T AGENDA ITEM #1. c) 43 Examining the Psychological Dimensions of Pricing In addition to the social and environmental issues surrounding pricing, the human elements of pricing must be considered. Regardless of how logical a price may seem; customer reactions and responses are their own and can be vastly different than what one might expect. The psychological dimensions of pricing include: • Protection of self-esteem (pricing in such a way as to not offend certain users) • Price-quality relationship (value received for every dollar spent) • Establishing a reference point (worth of service in comparison to others) • Objective price (price has a basis in fact, is real, and impartial) • Subjective price (price is not biased or prejudiced) • Consistency of image (perception of the brand and identification with product or service) • Odd pricing (perception of arbitrary or incongruent pricing) Establishing Initial Price Establishing an actual price for a program can be based upon a variety of strategies including: • Arbitrary pricing: basing fees on a general provision such as raising all fees $.25 to meet budget goals which ignores market conditions and cost recovery goals. Arbitrary pricing is not encouraged, as it is impossible to justify. • Market pricing: a fee based on demand for a service or facility or what the target market is willing to pay for a service. The private and commercial sectors commonly use this strategy. One consideration for establishing a market rate fee is determined by identifying all providers of an identical service (Examples: private sector providers, municipalities, etc.), and setting the highest fee. Another consideration is setting the fee at the highest level the market will bear. • Competitive pricing: a fee based on what similar service providers or close proximity competitors are charging for services. One consideration for establishing a competitive fee is determined by identifying all providers of an identical service (Examples: private sector providers, municipalities, etc.), and setting the mid-point or lowest fee. • Cost recovery pricing: a fee based on cost recovery goals within market pricing ranges. Understanding Price Revisions Once a price is established, there may be the need to periodically review it and examine the need for revision. In some cases, “revised” may be viewed as “increased”; therefore, a systematic approach to pricing revision is important. Factors to consider in pricing revision include: • Customer tolerance: the degree to which small increases in price will not encounter client resistance. • Adjustment period: the period of time where the value of the service is assessed by the customer in relation to the price increase. The value of the service from the customer’s perspective must meet or exceed the impact of the increased cost. Adjustment periods may lead to diminished participation or termination of participation altogether based upon customer loyalty and other factors. • Customers’ perceived value of the service: the degree to which services including programs, facilities, and parks impact the public (individual and community), or in other words, the results or outcomes of services. Value is the judgment or perception of worth or the degree of usefulness or importance placed on a service by personal opinion. The intent or intention of a service is the purpose, aim, or end. DRAF T AGENDA ITEM #1. c) 44 The Pricing Process – Developing a Method Staff participating in the series of workshops engaged in interactive exercises that applied the cost recovery goals of their respective service areas. The workshops prompted discussions leading to recommended changes to selected current pricing practices with the intention of attaining recommended cost recovery and tax investment allocation goals and establishing a new method for setting fees and charges. This method is based upon using cost recovery goals as a primary pricing strategy, followed by either market pricing (for services with low alternative coverage – few if any alternative providers) or competitive pricing (for services with high alternative coverage – other alternative providers offer similar or like services). Criteria for Establishing Fees The following guideline provides criteria used to determine if a service should be included in the tier, keeping in mind that a service does not have to meet every condition. High or Full Tax Investment = Low or No Cost Recovery • The service is equally available to everyone in the community and should benefit everyone • Because the service is basic, it is difficult to determine benefits received by one user • The level of service attributable to a user is not known • Administrative costs of imposing and collecting a fee exceed revenue expected from the fee • Imposing the fee would place the agency at a serious competitive disadvantage • The service is primarily provided by the public sector Partial Tax Investment = Partial Cost Recovery • User fees may recover only partial cost for those services for which the agency desires to manage demand, from those individuals who cannot pay full cost due to economic hardship, and if competitive market conditions make a full cost fee undesirable. • Services benefit those who participate but the community at large also benefits • The level of service use attributed to a user is known • Administrative costs of imposing and collecting the fee are not excessive • Imposing a full cost fee would place the agency at a competitive disadvantage • The service may be provided by the public sector but may also be provided by the private sector Low Subsidy = High Cost Recovery User fees should recover a substantial portion of the cost of services benefiting specific groups or individuals, and for those services provided to persons who generate the need for those services. • The individual or group using the service is the primary beneficiary • The level of service use attributed to a user is known • Administrative costs of imposing and collecting the fee are not excessive • Imposing a substantial fee would not place the agency at a competitive disadvantage • The service is usually provided by the private sector but may also be provided by the public sector DRAF T DRAF T AGENDA ITEM #1. c) 45 No Tax investment = Full Cost Recovery User fees should recover the full agency cost, or more, for a service in order to offset other indirect costs necessary to support the service or to generate revenue above cost which may be used to support scholarship programs or other community benefits. • Individuals or groups benefit from the service and there is little community benefit • The level of service use attributable to a user is known • There is excess demand for the service; therefore, allocation of limited services is required • Administrative costs of imposing and collecting the fee are not excessive • The service is provided at market price by the private sector Focus Area Five Objectives: Evaluation and Implementation The intent of this focus area is to identify practices and analysis methods for effectively evaluating the implementation of the Plan. Monitoring and evaluation is key to supporting implementation, and to assessing whether the Plan has fulfilled its intent to set direction and to guide resource allocation and service provisions. Table 10: Focus Area Five Objectives Focus Area Five Objectives: Evaluation and Implementation 5.1 Continue to review internal management practices to identify cost savings. Expenses may be minimized through avenues such as restructuring of programs, management efficiencies, and partnering. 5.2 Subsidy level targets may need refinement over the first year of implementation, so preliminary targets should be re-evaluated prior to year two. These targets are set to be in addition to what is needed just to keep up with inflationary expenses and will have to be carefully considered in the wake of the impact of COVID-19. 5.3 Review all fees for annual adjustments at the staff level and provide an update to City Council through the budget process. All fees should be considered for an annual adjustment in order to keep up with the increasing cost of providing the service. 5.4 Continue to provide ongoing opportunities for community input through a variety of outreach efforts and keeping the input process current and reflective of changing demographics, interests, and economic conditions. 5.5 Identify collaborations opportunities with other agencies including state and regional agencies, neighboring municipalities, and non-profits, to collectively meet identified needs. 5.6 Explore alternative funding sources that strategically align with the Division’s mission including potential partnerships and grants. DRAF T AGENDA ITEM #1. c) 46 5.7 Engage program staff in budget development and discussion of annual revenue goals. Develop revenue goals for each program area and require monthly or quarterly progress reports from all programmers. Revenue goals should align with the pyramid and community values. 5.8 Use Resource Allocation and Resource Allocation Philosophy, Model, and Policy and the Services Assessment Tools as Team Member training tools. Incorporate specific recommendations for use of the tools and recommendations/decision making into annual Team Member work plans, holding Team Members responsible for taking appropriate steps each year to complete the Service Assessment and Alternative Provider Spreadsheets; recommend indicated service strategies and actions to achieve indicated Resource Allocation targets. 5.9 Establish program performance measures and base divisional work plans and individual goals on performance measures. DRAF T DRAF T AGENDA ITEM #1. c) 47 Appendix A: National Recreation Trends Baby Boomers As Baby Boomers enter and enjoy retirement, they are looking for opportunities in fitness, sports, outdoors, cultural events, and other activities that suit their lifestyles. With their varied life experiences, values, and expectations, Baby Boomers are predicted to redefine the meaning of recreation and leisure programming for mature adults. Boomers are second only to Generation X and Millennials in participation in fitness sports in 2019.2 Boomers will look to park and recreation professionals to provide opportunities to enjoy many life-long hobbies and sports. When programming for this age group, a customized experience to cater to the need for self-fulfillment, healthy pleasure, nostalgic youthfulness, and individual escapes are important. Recreation trends are shifting from games and activities that boomers associate with senior citizens. Activities such as bingo, bridge, and shuffleboard will likely be avoided because boomers relate these activities with old age. Generation X Many members of Generation X are in the peak of their careers, raising families, and growing their connections within the community. As suggested by the 2017 Participation Report from the Physical Activity Council, members of Generation X were “all or nothing” in terms of their levels of physical activity; with 37 percent reported as highly active, and 27 percent reported as completely inactive. As further noted in the Report, over 50 percent of Generation X was likely to have participated in fitness and outdoor sports activities. An additional 37 percent participated in individual sports. 2 Physical Activity Council, Participation Report, 2019: http://www.physicalactivitycouncil.com/pdfs/current.pdf The changing pace of today’s world requires analyzing recreation trends from both a local and national level. Understanding the participation levels of City residents using data from the U.S. Census Bureau, combined with research of relevant national recreation trends, provides critical insights that help to plan for the future of parks and recreation. These new shifts of participation in outdoor recreation, sports, and cultural programs are an important component of understanding and serving community. Generational Preferences Activity participation and preferences tend to vary based on a number of demographic factors, but can also differ based on generational preferences. According to the Pew Research Center, the following birth years identify generations into the categories below. Silent Generation 1928-45 Baby Boomers 1946-64 Generation X 1965-80 Millenial 1981-96 Generatiom Z 1997-Present Source: Pew Research Center Table 11: Generation by Age DRAF T AGENDA ITEM #1. c) 48 The Millennial Generation The Millennial Generation is generally considered those born between about 1981 and 1996, and in April 2016, the Pew Research Center reported that this generation had surpassed the Baby Boomers as the nation’s most populous age group.3 As Millennials tend to be more tech-savvy, socially conscious, achievement-driven age group with more flexible ideas about balancing wealth, work and play. They generally prefer different park amenities, and recreational programs, as opposed to their counterparts in the Baby Boomer generation. Engagement with this generation should be considered in parks and recreation planning. In an April 2015 posting to the National Parks and Recreation Association’s official blog, Open Space, Scott Hornick, CEO of Adventure Solutions suggests the following seven things to consider to make your parks millennial friedly:4 1. Group activities are appealing. 2. Wireless internet/Wi-Fi access is a must – being connected digitally is a millennial status-quo, and sharing experiences in real time is something Millennials enjoying doing. 3. Having many different experiences is important – Millennials tend to participate in a broad range of activities. 4. Convenience and comfort are sought out. 5. Competition is important, and Millennials enjoy winning, recognition, and earning rewards. 6. Facilities that promote physical activity, such as trails and sports fields, and activities like adventure races are appealing. 7. Many Millennials own dogs, and want places they can recreate with them. In addition to being health conscious, Millennials often look for local and relatively inexpensive ways to experience the outdoors close to home; on trails, bike paths, and in community parks.5 Generation Z As of the 2010 Census, the age group under age 18 forms about a quarter of the U.S. population. Nationwide, nearly half of the youth population is ethnically diverse and 25 percent is Hispanic. Characteristics cited for Generation Z, the youth of today, include:6 1. The most obvious characteristic for Generation Z is the widespread use of technology. 2. Generation Z members live their lives online and they love sharing both the intimate and mundane details of life. 3. They tend to be acutely aware that they live in a pluralistic society and tend to embrace diversity. 4. Generation Z tend to be independent. They don’t wait for their parents to teach them things or tell them how to make decisions, they Google it. With regard to physical activity, a 2013 article published by academics at Georgia Southern University noted that the prevalence of obesity in Generation Z (which they describe as individuals born since the year 2000) is triple that of Generation X (born between 1965 and 1981). It suggests that due to 3 Richard Fry, “Millennials overtake Baby Boomers as America’s Largest Generation”, Pew Research Center Fact Tank, April 25,2 016, http:// www.pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers/, accessed May 2015 4 Scott Hornick, “7 Ways to Make Your Park More Millennial Friendly”, Parks and Recreation Open Space Blog, August 19, 2015, http://www. nrpa.org/blog/7-ways-to-make-your-parks-millennial-friendly, accessed May 2016 5 “Sneakernomics: How The ‘Outdoor’ Industry Became The ‘Outside’ Industry”, Forbes, September 21, 2015, http://www.forbes.com/sites/ mattpowell/2015/09/21/sneakernomics-how-the-outdoor-industry-became-the-outside-industry/2/#50958385e34d, accessed May 2016 6 Alexandra Levit, “Make Way for Generation Z”, New York Times, March 28, 2015, http://www.nytimes.com/2015/03/29/jobs/make-way-for- generation-z.html, accessed May 2016 DRAF T DRAF T AGENDA ITEM #1. c) 49 increased use of technology, Generation Z spends more time indoors, is less physically active, and more obese compared to previous generations. The researchers noted that Generation Z seeks social support from peers more so than any previous generation. This is the most competent generation from a technological standpoint, but Generation Z also tends to fear, and often struggles with, some basic physical activities and sports. The 2019 Physical Activity Council Participation Report found that team sport participation in Generation Z declined over the past six years a 0.2 percent annually.7 National Healthy Lifestyle Trends The population of the United States is becoming more diverse. As demographics are experiencing an age and ethnic shift, so too are landscapes, daily lifestyles and habits changing. The number of adults over the age of 65 has increased, and lifestyle changes have encouraged less physical activity; collectively these trends have created profound implications for the way local governments conduct business. Below are examples of trends and government responses. More and more, local governments are accepting the role of providing preventative health care through park and recreation services. The following facts are from an International City/County Management local government survey:8 • 89% of respondents’ parks and recreation departments should take the lead in developing communities conducive to active living. • 84% had already implemented recreation programs that encourage active living in their community. • The highest priority selected for the greatest impact on community health and physical inactivity was a cohesive system of parks and trails and accessible neighborhood parks. Nationwide Fitness Activity Trends According to the Sports and Fitness Industry Asociation, high impact intensity training (HIIT) and cross- training style workouts, or CrossFit, are two of the top trending aerobic activities. CrossFit combines elements of gymnastics, weightlifting, running, rowing, and other sports to create a varied fitness regime. With regard to individual sports, off-road triathlons have seen almost 17 percent average annual growth for the last five years. These races, such as XTERRAs, consist of a competitive combination of swimming, mountain biking, and trail running. Pickleball, a paddle sport mixing badminton, tennis, and table tennis, is still trending, gaining an average 8ht percent growth each year according to the SFIA report. Growing even slightly faster is Cardio Tennis at 9.1 percent. Cardio Tennis is a fitness program that focuses on combining a full body workout with elements of tennis. Engaging non-participants is one of the challenges of parks and recreation agencies. According to the 2018 SFIA report, Income has been seen to impact activity rates; those households making under $50,000 are significantly less active than those making more. Data shows that having someone to join first time users will increase participation more than any other reason. 7 Physical Activity Council, Participation Report, 2019: Physical Activity Council, Participation Report, 2019: http://www.physicalactivitycouncil. com/pdfs/current.pdf 8 Active Living Approached by Local Government: Survey,” International City/County Management Association, http://bookstore.icma.org/ freedocs/Active%20Living%20and%20Social%20Equity.pdf, 2004. DRAF T AGENDA ITEM #1. c) 50 Table 12: Nationwide Sports and Fitness Trends Source: 2018 Sports, Fitness, and Leisure Activities Topline Participation Report, 2012 - 2017 Before and After School Care Programs Many park and recreation agencies offer before and after-school care programs. These programs may include fitness/play opportunities, healthy snack, and tutoring/homework services. According to an NRPA poll, 90 percent of U.S. adults believe that before-and after-school programs offered by local park and recreation agencies are important.9 Furthermore, according to a 2018 Out-of-School Time Report, approximately 55 percent of local parks and recreation agencies offer after-school programming. Parks and recreation professionals consider the top five benefits of afterschool programs provided to youth are:10 • Safe spaces to play outside of school • Free or affordable places for health and wellness opportunities • Opportunities to network and socialize with others • Experience nature and outdoors • Educational support and learning opportunities 9 Parks and Recreation: The Leaders in Before and Afterschool Care, National Recreation and Parks Association. Accessed December 2019. https://www.nrpa.org/publications-research/park-pulse/parks-and-recreation-the-leaders-in-before-and-after-school-care/ 10 2018 Out-of-School Time Report, National Recreation and Parks Association Accessed February 2020: https://www.nrpa.org/contentassets/ c76ea3d5bcee4595a17aac298a5f2b7a/out-of-school-time-survey-results-report-2018.pdf DRAF T DRAF T AGENDA ITEM #1. c) 51 Figure 11: Overview of NRPA Park Pulse Report on Before and After School Care DRAF T AGENDA ITEM #1. c) 52 Teen Programming Local parks and recreation agencies are often tasked with finding opportunities for teen programming beyond youth sports. As suicide is the second highest causes of deaths among United States teens, mental health continues to be a priority for this age group. Activities such as meditation, yoga, sports, art and civic engagement can help teens develop life skills and engage cognitive functions. Beyond interacting with those of their own age, many agencies are developing creative multi-generational activities which may involve seniors and teens assisting one another to learn life skills. Agencies that can help teens develop career development skills and continue their education are most successful in promoting positive teen outcomes and curbing at-risk behavior.11 Team Sport Participation According to the SFIA report, hockey, rugby, and lacrosse have all experienced an increase of participation nationwide. Although roller skating and ice skating have declined in participation, field hockey and ice hockey have both seen growth. Field hockey, from 2016 to 2017, grew 15.9 percent. Ice Hockey has grown 2.8 percent average annually for the last five years. Ultimate Frisbee, touch football, and fast pitch softball have seen a significant decline in the last five years Aquatics and Water Recreation Trends In 2018, the National Sporting Goods Association (NSGA) ranked swimming second nationwide in sports participation.12 However, in the past several years, a number of different aquatics trends have emerged that offer a new take on the traditional rectangle pool. Nationally, there is an increasing trend towards indoor leisure and therapeutic pools. This is important, as swimming for fitness was the top aspirational activity for “inactives” in all age groups, according to the Sports & Fitness Industry Association (SFIA) 2016 Sports, Fitness and Leisure Activities Topline Participation Report. Lazy rivers have become more common as a leisure pool element, but also for swim lessons, therapeutic reasons, and sports conditioning work.13 To add a fun aquatics element, agencies are experimenting with using large inflatables in pools. Most of these inflatables are related to challenge course elements, with slides, rock climbing elements, and other obstacles. In regards to pool design, zero-depth entry is considered more accessible for young children, seniors, and those with disabilities. Splash pad elements are also becoming more common in shallow waters. In addition, sometimes volleyball nets and basketball hoops can be installed to encourage play.14 Older Adults and Senior Programming Many older adults and seniors are choosing to maintain active lifestyles and recognize the health benefits of regular physical activities. With the large number of adults in these age cohorts, many communities have found a need to offer more programming, activities, and facilities that support the active lifestyle this generation desires. Public parks and recreation agencies are increasingly expected to be significant providers of such services and facilities. The American Academy of Sports Medicine issues a yearly survey of the top 20 fitness 11 Kardys, Jack “Park Afterschool Programs: A Vital Community Resource” National Recreation and Park Association. June 2019, https://www. nrpa.org/parks-recreation-magazine/2019/june/park-afterschool-programs-a-vital-community-resource/ 12 “2018 Sport Participation Snapshot,” National Sporting Goods Association, 2018. 13 “Sports, Fitness, and Leisure Activities Topline Participation Report,” Sports and Fitness Industry Association, 2016. 14 American College of Sports Medicine, “Survey Predicts Top 20 Fitness Trends for 2015”, http://www.acsm.org/about-acsm/media-room/ news-releases/2014/10/24/survey-predicts-top-20-fitness-trends-for-2015, accessed January 2015. DRAF T DRAF T AGENDA ITEM #1. c) 53 trends.15 It ranks senior fitness programs eighth among most popular fitness trends for 2015. Whether it’s Silver Sneakers, a freestyle low-impact cardio class, or water aerobics, more Americans are realizing the many benefits of staying active throughout life. According to the National Sporting Goods Association, popular senior programming trends include hiking, birding, and swimming. Community Events and Festivals In the context of urban development, from the early 1980’s there has been a process that can be characterized as “festivalization,” which has been linked to the economic restructuring of towns and cities, and the drive to develop communities as large-scale platforms for the creation and consumption of “cultural experience.” The success rate for festivals should not be evaluated simplistically solely on the basis of profit (sales), prestige (media profile), size (numbers of events). Research by the European Festival Research Project (EFRP)16 indicates there is evidence of local and city government supporting and even instigating and managing particular festivals themselves to achieve local or regional economic objectives, often defined very narrowly (sales, jobs, tourists). There is also a growing number of smaller, more local, community-based festivals and events in communities, most often supported by local councils that have been spawned partly as a reaction to larger festivals that have become prime economic-drivers. These community-based festivals often will re-claim cultural ground based on their social, educational, and participative value. For more information on the values of festivals and events, see the CRC Sustainable Tourism research guide17 on this topic. In 2014, festivals grew in popularity as economic drivers and urban brand builders. Chad Kaydo describes the phenomenon in the January 2014 issue of Governing Magazine: “Municipal officials and entrepreneurs see the power of cultural festivals, innovation-focused business conferences and the like as a way to spur short-term tourism while shaping an image of the host city as a cool, dynamic location where companies and citizens in modern, creative industries can thrive.”18 Outdoor Recreation Outdoor recreation has become a thriving economic driver, creating 7.6 million jobs in 2018 and generating $65.3 billion in federal tax revenue. Close to half of the US population six and older participated in at least one outdoor activity in 2017. The most popular activity was running – which included both jogging and trail running. Participation among Hispanics and Asians has increased by 1.0 percent and 0.9 percent in the last five years in outdoor recreation, respectively. In the State of Washington, the outdoor recreation economy generates: • 201,000 direct jobs • $26.2 billion in consumer spending • $7.6 billion in wages and salaries • $2.3 billion in state and local tax revenue 15 American College of Sports Medicine, “Survey Predicts Top 20 Fitness Trends for 2015”, http://www.acsm.org/about-acsm/media-room/ news-releases/2014/10/24/survey-predicts-top-20-fitness-trends-for-2015, accessed January 2015. 16 EFRP is an international consortium seeking to understand the current explosion of festivals and its implications and perspective. http://www.efa-aef.eu/en/activities/efrp/, accessed October 2012. 17 Ben Janeczko, Trevor Mules, Brent Ritchie, “Estimating the Economic Impacts of Festivals and Events: A Research Guide,” Cooperative Research Centre for Sustainable Tourism, 2002, http://www.sustainabletourismonline.com/1005/events/estimating-the-economic-impacts-of- festivals-and-events-a-research-guide, accessed October 2012. 18 Chad Kaydo, “Cities Create Music, Cultural Festivals to Make Money,” Governing, January 2014, http://www.governing.com/topics/finance/ gov-cities-create-mucis-festivals.html. DRAF T AGENDA ITEM #1. c) 54 Division Accreditation Parks and recreation agencies are affirming their competencies and value through accreditation. This is achieved by a Division’s commitment to 150 standards. Accreditation is a distinguished mark of excellence that affords external recognition of an organization’s commitment to quality and improvement. The National Recreation and Parks Association administratively sponsors two distinct accreditation programs: The Council on Accreditation of Parks, Recreation, Tourism and Related Professions (COAPRT) approves academic institutions, and the Commission for Accreditation of Parks and Recreation Agencies (CAPRA) approves agencies. It is the only national accreditation of parks and recreation agencies and is a valuable measure of a Division’s overall quality of operation, management, and service to the community. DRAF T DRAF T AGENDA ITEM #1. c) 55 Appendix B: The Pyramid Methodology The GreenPlay Pyramid Methodology, used in the development of the Subsidy and Resource Allocation Model, is built on a foundation of understanding who is benefiting from park and recreation services to determine how the costs for service should be paid. The Model illustrates a pricing philosophy based on establishing fees commensurate with the benefit received. Descriptions regarding each level of the pyramid are provided; however, the model is intended as a discussion point and is very dependent on agency philosophies to determine what programs and services belong on each level. Cultural, regional, geographical, and resource differences play a large role in this determination. The resulting pyramid is unique to each agency that applies this methodology. Application of the pyramid methodology begins with the mission of the organization, but must also address other considerations: • 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? (The ability to pay is different than the benefit and value of a program, activity, or service, and therefore, should be dealt with during the implementation phase of pricing and marketing.) • Do community values support taxpayer investment for the cost of service for individuals with special needs (for example, people with disabilities or low-income)? • Will the level of the fee affect the demand for the service? • Is it possible and desirable to manage demand for a service by changing the level of the fee? • Are there competing providers of the service in the public or private sector? The application of the model is broken down into the following steps: Step 2: Understanding the Pyramid Methodology, the benefits filter, and secondary filters Step 3: Developing the organization’s Categories of Service Step 4: Sorting the Categories of Service onto the Pyramid Step 5: Defining Direct and Indirect Costs Step 6: Determining (or confirming) current tax investment/cost Step 7: Establishing tax investment goals/subsidy level targets Step 8: Understanding and preparing for influential factors and considerations Step 9: Implementation Step 10: Evaluation DRAF T AGENDA ITEM #1. c) 56 Step 1: Building on Your Organization’s Values, Vision, and Mission Critical to this philosophical undertaking is the support and buy-in of elected officials and advisory board members, staff, and ultimately, citizens. Whether or not significant changes are called for, the organization should be certain that it philosophically aligns with its constituents. The financial resource allocation philosophy and policy is built upon a very logical foundation based upon the theory that those who benefit from parks and recreation services ultimately pay for them. Envision a pyramid sectioned horizontally into five levels: Step 2: Understanding the Pyramid Methodology and Filters The philosophy and policy are key components to maintaining an agency’s financial control, equitably pricing offerings, and helping to identify core services including programs and facilities. The principle of the Pyramid is the Benefits Filter. The base level of the pyramid represents the core services of a public parks and recreation system. Services appropriate to higher levels of the pyramid should only be offered when the preceding levels below are comprehensive enough to provide a foundation for the next level. The foundation and upward progression are intended to represent public parks and recreation’s core mission, while also reflecting the growth and maturity of an organization as it enhances its service offerings. DRAF T DRAF T AGENDA ITEM #1. c) 57 MOSTLY COMMUNITY BENEFIT Level one is the foundation of the pyramid and therefore the largest, and encompasses those services, including programs and facilities, that MOSTLY benefit the COMMUNITY as a whole. These services may increase property values, provide safety, address social needs, and enhance quality of life for residents. The community generally pays for these basic services via tax support and are generally offered to residents at a minimal charge or with no fee. A large percentage of the agency’s tax support funds this level. Examples of these services could include: the existence of the community parks and recreation system (park maintenance), the ability to visit facilities on an informal basis, park and facility planning and design. NOTE: All examples given are generic – individual agencies vary in their determination of which services belong on which level of the Pyramid based upon agency values, vision, mission, demographics, goals, etc. CONSIDERABLE COMMUNITY Benefit Level Two represents services that promote community and individual physical and mental well-being, and may begin to provide skill development. They are generally traditionally expected services and/or beginner instructional levels. These services are typically assigned fees based upon a specified percentage of direct (and may also include indirect) costs. These costs are partially offset by both a tax investment to account for CONSIDERABLE COMMUNITY benefit and participant fees to account for the Individual benefit received from the service. Examples of these services could include: staffed facility and park use, therapeutic recreation programs and services, adult recreation leagues, etc. BALANCED INDIVIDUAL/COMMUNITY Benefit Level Three represents services promoting individual physical and mental well-being and providing an intermediate level of skill development. There is a more balanced INDIVIDUAL and COMMUNITY benefit and should be priced accordingly. The individual fee is set to recover a higher percentage of cost than those services falling within lower Pyramid levels. Examples of these services could include: summer recreational day camp, youth sports leagues, year‐round swim team, etc. DRAF T AGENDA ITEM #1. c) 58 CONSIDERABLE INDIVIDUAL Benefit Level Four represents specialized services geared toward individuals and specific groups, and services that may have a competitive focus. These are not highly subsidized and may be priced to recover full cost, including all direct expenses. Examples of these services could include: Trips, advanced level classes, competitive leagues, etc. MOSTLY INDIVIDUAL Benefit At the top of the Pyramid, Level Five represents services that have potential to generate revenues above costs, may be in the same market space as the private sector, or may fall outside the primary mission of the agency. In this level, services should not be supported by subsidy, should be priced to recover full cost, and may generate revenue in excess of cost. Examples of these activities could include: Private lessons, company picnic rentals, other facility rentals for weddings or other services, concessions and merchandise for resale, restaurant services, etc. Step 3: Developing the Organization’s Categories of Service Prior to sorting programs and services onto the Pyramid, each must be reviewed, analyzed, and sifted through to create the agency’s Categories of Services, including definitions and examples. “Narrowing down” facilities, programs, and services and placing them in categories (groups of like or similar service) that best fit their descriptions, allows a reasonable number of items to be sorted onto the pyramid tiers using the Individual and Community Benefit filter. There is not a pre-determined number of categories, however, ultimately every program and service offered must fit within a category, so carefully naming, describing, distinguishing, and providing examples for each category is critical to a successful effort. DRAF T DRAF T AGENDA ITEM #1. c) 59 Step 4: Sorting the Categories of Service onto the Pyramid The sorting process is where ownership is created for the philosophy, while participants discover the current and possibly varied operating histories, cultures, missions, and values of the organization. The process develops consensus and allows everyone to land on the same page. The effort must reflect the community and align with the mission of the agency. The sorting process is a challenging step led by objective and impartial facilitators in order to hear all viewpoints. The process generates discussion and debate as participants discover what others have to say about serving the community; about adults versus youth versus seniors; about advanced versus intermediate and beginning programs; about special events; athletic fields; and rentals involving the general public, non-profit and for-profit entities; etc. It is important to push through the “what” to the “why” to find common ground. There is also the consideration of additional filters (discussed in Step 8), which often hold a secondary significance in determining placement on the Cost Recovery Pyramid. Step 5: Defining Costs The definition of direct and indirect costs can vary from agency to agency. The most important aspect is that all costs associated with directly running a program or providing a service are identified and consistently applied across the system. Direct costs typically include the specific, identifiable expenses associated with providing a service. These expenses would not exist without the service and may be fixed or variable costs. Indirect costs are costs shared among services. It is up to each agency to determine how best to allocate indirect costs, and the default is often the consequence of the agency’s accounting software’s ability to track and assign costs at the programmatic level. Step 6: Determining (or Confirming) Current Tax Investment/Subsidy Levels The agency will confirm or determine current subsidy allocation levels by category of services based upon the definition of costs. Results of this step identify what it costs to provide services to the community, whether staff has the capacity or resources necessary to account for and track costs, whether accurate cost recovery levels can be identified, and whether cost centers or general ledger line items align with how the agency may want to track these costs in the future. Staff may not be cost accounting consistently, and these inconsistencies become apparent. DRAF T AGENDA ITEM #1. c) 60 Step 7: Establishing Cost Recovery/Tax Investment Targets The steps thus far work to align who is benefiting from programs and services with the sources of funding used to pay for them. The tax investment is used in greater amounts at the bottom levels of the pyramid, reflecting the benefit to the Community as a whole. As the pyramid is climbed, the percentage of tax investment decreases, and at the top levels, it may not be used at all, reflecting the Individual benefit. Targets take into account current subsidy levels. As costing of services and matching revenues is a very revealing process, realistic and feasible targets are recommended to align with the pyramid model and also to meet specific financial objectives for recovery of direct and indirect cost. These targets will be identified for each tier of the agency’s Pyramid Model. Step 8: Understanding and Preparing for Influential Factors and Considerations Inherent to sorting programs onto the Pyramid Model using the Benefits and other filters is the realization that other factors come into play. This can result in decisions to place services in other levels than might first be thought. These factors can aid in determining core services versus ancillary services. These may include participant commitment, trends, political issues, marketing, relative cost to provide the service (cost per participant), current economic conditions, and financial goals. Step 9: Implementation The agency sets goals based upon its mission, stakeholder input, funding, and/or other criteria. Completion of steps 1-8 position the agency to illustrate and articulate where it has been and where it is heading from a financial perspective. Some recommendations are scheduled to occur immediately, and others will take time to put into place, while some will be implemented incrementally. It is important that fee change tolerance levels are considered. Step 10: Evaluation This process is undertaken to articulate a philosophy, train staff on a best practice ongoing approach to subsidizing services in public parks and recreation, and enhance financial sustainability. Performance measures are established through subsidy level targets, specific recommendations are made for services found to be out of alignment, and evaluation of goal attainment is recommended to take place annually. DRAF T DRAF T AGENDA ITEM #1. c) 61 Appendix C: RND Categories of Service Service Category Definition Examples Private Lessons One on one instruction to improve or learn specific skills with progressive learning and performance expected computer lessons, guitar lessons, tennis lessons, private swim lessons Private Leagues Competitive sports programs and leagues operated or managed by outside organizations. Participation based on selection process i.e. try outs. Not offered by recreation staff, but field rental and gym space provided to these types of organizations through our rental process such as club or select soccer, baseball, football, etc. Merchandise for Resale or Vending / Concessions Products intended for individual use Concessions such as food, goggles, swim diapers, t-shirts Tier 5 Service Category Definition Examples Adult Fitness Adult group fitness Boot camp, yoga, tai chi, cardio cross training, rowing, water aerobics at HMAC Adult Programs Enrichment programing geared towards adults Renton Sailing Club, Greenhouse Gardening Rentals Private rental use of city owned property or spaces, such classrooms, basketball gyms athletic field, entire facilities such as the Henry Moses Aquatic Center HMAC, picnic shelters Weddings, birthday parties, meetings, and tradeshows Adult Leagues Recreational athletic leagues and activities operated managed by the city through contract or city staff throughout the year Baseball, basketball, softball, volleyball, kickball, etc. Creative Kids Preschool Half day preschool for youth age 3-5 Creative Kids Preschool Tier 4 DRAF T AGENDA ITEM #1. c) 62 Service Category Definition Examples Programs for Youth 5-14 years Enrichment programs and activities to expose youth to a variety of art, drama, dance, civic engagement and gaming clubs lead or taught by city staff or contracted companies Steppin Together dance, art explorers Programs for Teens 13-19 years Enrichment programs and activities operated, taught, or managed by city staff or contracted company Learn and grow classes, art, dance, kindergarten readiness class, Little Movers indoor gym , intro to sports, tumbling classes, swim lessons, mommy and me classes Programs for Seniors Enrichment programs, activities, entertainment, and day trips lead by, taught, or managed by city staff Arts, crafts, dance, computer classes, yoga, sports, and luncheons Summer Day Camps Structured camps with a focus of fun, active, socialization, optional learning focuses or themes with weekly field trips to enhance the experience, with time frames and durations varying, staffed by either city staff or contracted companies Camp Discovery, Mighty Mites, Adventure Seekers and Explorers, robotics camps, kindergarten prep camps, cheer camp, cartooniversity, wilderness survival camps, Junior Lifeguard Day Camp, golf, Sports and Splash Youth Athletics Group introduction to a variety of sports to intermediate lessons of specific sports and clinics to improve skills further. Programming emphasis is exposure to sport fundamentals, sportsmanship, teamwork, and participation by all format. Swim lessons, gymnastics, cheerleading, tennis Youth Leagues Recreational leagues with structured team format, including umpires or referees, operated, taught, or managed by city staff or contracted company throughout a season. Participation open to all that register, no try outs required. Example: baseball, basketball, softball, volleyball, group swim lessons, youth, tennis classes, gymnastics, Tai Kwon Do, youth volleyball, cross country, track, cheerleading Tier 3 DRAF T DRAF T AGENDA ITEM #1. c) 63 Adaptive Recreation Recreation programs for multi-age individuals with developmental and physical challenges to provide social engagement, life enrichment and athletic program opportunities supported by city staff Special Olympics athletic programming, Club Thursdays, field trips, life skills classes, arts and culture classes. Drop-in Programs/One-time use Recreation buildings for all ages, either one time use or on-going during specific time blocks open basketball gym and fitness rooms, billiards room, racquetball rooms, specific exercise classes, speakers and entertainment at senior center, general open swim sessions at HMAC Renton Community Center, Senior Center, Highlands Neighborhood Center, and Henry Moses Aquatic Center Out of School Time Programs After school programs with a social, educational and recreational focus which may include field trips and school breaks STREAM Program Highlands Neighborhood Center, including mid-winter and spring break programs and classes Service Category Definition Examples Partnered Social Services Services provided by contracted companies and/or government agencies or service organizations that improve the community and individual well-being. Low cost senior lunch program, dental and foot care, free tax preparation, free legal services, transportation services, informational speakers, youth clothing bank Public Safety Education Programs that provide public safety and lifesaving skills to a variety of ages, and/or emergency management Emergency preparedness classes, cyber security, financial security, bike and helmet safety “Bike Rodeo” event, CPR/AED classes, learn to swim lessons, free life jacket program offered at Kennydale and Coulon beaches and HMAC Internal Services Coordination and delivery of event equipment, supplies, vehicles, and staffing for non- division events Ribbon cuttings, other city- department event support, sound and audiovisual support for city events, etc. Tier 2 DRAF T AGENDA ITEM #1. c) 64 Service Category Definition Examples Park and Trail Use Unmonitored access – use of any outdoor park space or park amenity for recreational purposes that does not require coordination or supervision of city staff Walking, jogging, dog walking, hiking, biking, outdoor basketball and tennis courts, use of outdoor exercise equipment, and playgrounds Aquatics – Beaches Lifeguarding of public beaches to ensure public safety and provide education on water safety and park information Daily guarded swim hours during the summer, free life jacket program, lifeguard training with Renton Fire Authority and Park staff Neighborhood Programs Provides grant matching dollars for neighborhood improvements, community engagement, projects and events. Supports projects developed and implemented by community members. Engaging, empowering and connecting geographic community groups to enhance their neighborhoods. Revitalization, Community Events, Beautification Tier 1 DRAF T DRAF T AGENDA ITEM #1. c) 65 Appendix D: Renton Service Portfolio Matrix Appendix F: Renton Service Portfolio Matrix DRAF T AGENDA ITEM #1. c) 66 DRAF T DRAF T AGENDA ITEM #1. c) 67 DRAF T AGENDA ITEM #1. c) 68 DRAF T DRAF T AGENDA ITEM #1. c) 69 DRAF T AGENDA ITEM #1. c)