HomeMy WebLinkAboutAgenda Item VII-C
C I T Y O F B O U L D E R
PARKS AND RECREATION ADVISORY BOARD AGENDA ITEM
MEETING DATE: December 16, 2013
AGENDA TITLE
: Plan and Timeline for Financial Strategy Discussion for 2015
Budget Process
PRESENTERS:
Kirk Kincannon, CPRP, Director, Parks and Recreation
Jeff Dillon, Interim Director
Alice Guthrie, Recreation Superintendent
Abbie Poniatowski, Business Services Manager
Teri Olander, Recreation Administrator
Alison Rhodes, Lead Facility Supervisor
INTRODUCTION
Boulder Parks and Recreation Department (BPRD) operates a portion of its $26.5 million
budget under the Recreation Activity Fund (RAF) as quasi-enterprise fund with the intent
to balance expenses for recreation programs and facilities with revenues from customers.
This is approximately a $10 million business function that receives approximately $1.5
million in tax payer subsidies to provide for essential recreations services for low income
and in need populations.
The BPRD master plan was accepted by the PRAB and Planning Board in 2013 and will
be presented to City Council for acceptance at the February 4, 2014 meeting through a
public hearing. Once accepted by City Council, this plan outlines financial strategies and
policies that build upon the 2010 Recreation Programs and Facilities Plan and will guide
department decision-making for service offerings over the next five years. The purpose of
this memo is to outline the business processes that have been in place and discuss
proposed changes in policies and practices that will impact the viability of the RAF.
Since the success of providing community recreation services is linked to the
department’s financial ability to provide low cost services to youth and families who are
not able to afford services it will be critical that PRAB provide guidance and direction on
what programs, services and facilities are subsidized and at what rates. The goal is that
these discussions will result in establishment of a fee policy that will create long-term
stability of the RAF and allow for subsidy of those programs and services determined by
the community to be essential for the health and well-being of residents and business
partners.
Agenda Item VII-C page 1
This approach will include three specific PRAB study sessions and meetings starting in
January and ending in advice from PRAB as to the financial direction for RAF by April.
The proposed key topics over the next four months include:
January – Overview of current policies, business models and financials of the RAF
February – Overview of programs and services in relation to financial sustainability
of the RAF
March – Analysis of the impacts and changes of the policies and determination of
program subsidy levels
April – Recommendations by PRAB through public hearing on the business model
and fee policies for 2015
ANALYSIS:
Before changes to department fees can be considered, it is important to understand the
financial status of the department and the various funding sources. The proposed plan for
the financial strategy discussions (Attachment A) starts with reviewing current goals,
policies and guiding principles that set the framework. Next, PRAB will discuss the
department’s portfolio of services in relation to the shift of service priorities outlined in
the master plan and the changes needed to implement the identified shifts. This would
include reviewing current pricing methodology and cost definition. It is important that the
PRAB understand the changes that may result from these types of shifts and provide
policy guidance to the department.
Based on the scope of the discussion, the information provided, and any additional work
that arises, a decision will need to be made at the February or March meeting regarding
whether or not any changes to department fees will be evaluated and recommended for
the 2015 budget. Due to impacts from the flood there may be limited staff resources to do
the in-depth analysis that is needed to develop sound business practices as outlined in the
master plan, but the department will make every effort to provide critical data in a timely
way.
Staff recommends using a pilot approach to identify one specific facility or set of services
to do a full analysis on for 2014 and use it as the model for future business management
practices. One advantage of this approach is that the city is adopting new financial
software that will update the current chart of accounts enabling additional tracking of
demographics and financial data. The design of this system and related chart of accounts
will be critical in the long-term analytical capacity of the department to manage the RAF
as a business unit.
At the November 16, 2013 PRAB meeting, members of the PRAB asked that information
be provided on several topics. As we move through the series of discussions, the
following information will be provided as it aligns with the expected outcomes:
History of fee increases (February)
Demographics of recreation center users (February)
Reduced rate
o
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Ages (adult/seniors/youth)
o
Resident/Non-resident
o
Off-peak pricing (e.g., Twilight pass) (February)
Market rate comparisons (March)
Additional questions that PRAB members have will also be incorporated into the
discussion, but with limited resources it will be important that the overall business model
be addressed. The pilot approach is anticipated to achieve the desired long-term goal of a
sustainable RAF that is data driven.
Questions for PRAB:
1.What questions does PRAB have on the proposed timeline and plan?
2.What changes does PRAB suggest for the financial strategy discussion?
3.Does PRAB support the pilot approach for the initial study?
NEXT STEPS:
The department will adjust the timeline based on input from the PRAB and schedule
study sessions to begin the financial strategy discussion.
ATTACHMENTS:
A.Draft Financial Strategy Discussion Timeline
Agenda Item VII-C page 3