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Parks and Recreation - 05/22/2001 APPROVED MINUTES EDEN PRAIRIE COMMUNITY PROGRAM BOARD TUESDAY, MAY 22, 2001 7:00 P.M., CITY CENTER Council Chambers 8080 Mitchell Road BOARD MEMBERS: Chair Munna Yasiri, Dick Brown, Therese Benkowski, Harry Davis, Jr., Jeffrey Gerst, Harry Moran, Susan Oswald and Kim Teaver BOARD STAFF: Laurie Obiazor, Staff Liaison and Carol Pelzel, Recording Secretary STUDENTS-AT-LARGE: Amanda Mount, Greg Swim and Steve Wang I. CALL TO ORDER AND ROLL CALL Chair Yasiri called the meeting to order at 7:00 p.m. Board members present included Munna Yasiri, Harry Davis, Jr., Therese Benkowski, Jeffrey Gerst, Harry Moran and Susan Oswald. Student-at-large representative present was Steve Wang. Board members absent were Dick Brown and Kim Teaver. II. APPROVAL OF AGENDA MOTION: Benkowski moved, seconded by Gerst, to approve the agenda as published. Motion carried, 5-0. III. APPROVAL OF APRIL 24, 2001 MINUTES MOTION: Davis moved, seconded by Benkowski, to approve the April 24, 2001, minutes as published. Motion carried,5-0. IV. OLD BUSINESS Davis questioned if the City is funding any trails or recreation facilities adjacent to ADC. Obiazor explained that there might be discussions regarding a joint partnership between the City and ADC for trail access to the park in that area. She indicated that she would check into this further and report back to him. V. NEW BUSINESS Community Program Board May 22, 2001 Page 2 VI. REPORTS OF STAFF A. Recreation Program Fee Policy Obiazor presented a general overview of the City's policy for recreation program fees. She presented the history of the program and the rationale for breaking down the services into four categories. Obiazor said she hoped this information would help the Board understand how the fees are established, what the expenditures are and how certain activities are subsidized. Obiazor reviewed with the Board the organization of the Parks and Recreation Services Area and presented an overview of the service area structure. Yasari asked that Board members be provided with a copy of the Parks and Recreation Services organization chart. Obiazor explained that approximately five years ago the City Council approved a policy for maximum subsidy for recreation programs. The policy has served the City well for the last five years and no amendments have been made to that policy. She explained that in the future there may be reasons to review this policy for possible changes. Obiazor stated that when a program does not meet its assigned subsidy level, they might look at increasing fees or reducing expenditures. In some cases they may need to take a year or two to fall within the approved subsidy percentage. In most cases, programs are meeting the subsidy level. Yasari asked that Obiazor clarify the meaning of subsidy level. Obiazor responded that the City's main source of revenue is tax dollars. Taxpayers assume that those dollars go toward subsidizing recreation programs to offer them at an affordable price. In some cases that is true, however, certain programs should not be subsidized. For example, a special interest program would not be subsidized. Obiazor explained that subsidy means any program that does not meet its direct costs will be subsidized by City tax dollars. A fee is usually charged for most programs and an additional 20 percent administrative fee is added to every program. Obiazor stated that subsidy is the amount the participants do not pay directly. Davis asked if a program is subsidized 50 percent, does the program have to generate 70 percent income to include the 20 percent administrative fee. Obiazor responded that the 20 percent administrative fee is included in the 50 percent subsidy. For example, open skating which has a maximum subsidy of 50 percent would include 20 percent indirect costs and 30 percent direct costs. Davis asked if this conflicts with the High School's fee schedule. Obiazor explained that the High School is separate from the City. Yasari asked if the City has looked at increasing fees for open gym, open skating or open swimming. Obiazor indicated that staff does survey adjacent communities with a similar population on a regular basis. They are also in the process of developing the 2002/2003 budget proposal, which gives them the opportunity to evaluate the fees to see if they are charging comparable rates. There are certain programs that could have fee increases while others would not bear increases. It depends on what the market can bear and how it would affect registrations. They do try to make the programs affordable. The policy is a guideline which City staff tries to work within the best they can. Obiazor reviewed the four subsidy categories explaining that the first category is basic services, which has a maximum subsidy level of 120 percent. Basic services are those that every taxpayer is entitled to receive and includes playground programs, drop-in recreation such as free skating and swimming beaches as well as services for seniors and the disabled. Community Program Board May 22, 2001 Page 3 The second category is enhanced services, which has a maximum subsidy level of 75 percent. This category includes special events or activities to which the community is invited without a fee. Staff does try to fund these programs through sponsors or contributors to pay for the direct costs. The third category is fee-assisted services, which has a maximum subsidy level of 20 percent. These services include programs that are slightly subsidized, such as preschool playground and some senior programs as well as programs with managed fee levels. The fourth and last category is fee supported services which has no subsidy. These services are provided at no cost to the taxpayers and in many cases show a profit. These programs include the majority of all adult and youth athletic and lesson programs. Obiazor said she hoped this general overview of the fee policy would provide the Board with a better understanding of the recreation program fee policy. It is also a good tool to help evaluate whether or not the City should be offering a specific program. Obiazor explained that when this policy was established, they developed a Program Planning Budget Worksheet. Staff is encouraged to use this worksheet prior to setting up a program and to use it to double check figures against estimated and actual costs. It also assists them in determining whether or not a program meets its subsidy level. Obiazor further explained that another tool they use is a program ending report. Once a program is completed staff completes a program ending report providing background information, number of participants, revenue breakdown, and expenditures for the program, administrative fee, etc. This report gives the balance and shows the actual subsidy amount for the program. This report provides a program recap and suggestions for the program for the next year. Once the reports are completed they are shared with the Recreation Manager. Much of the information is included in the Parks and Recreation Services annual report. Obiazor reported that when the annual report is completed she would be sure to provide the Board with copies of that report. Davis pointed out that since the 20 percent administrative fee is a given and if there are no direct costs for a program, the maximum subsidy would be 20 percent. However, under fee assisted services, preschool playground shows a maximum subsidy of 15 percent. Obiazor explained that 15 percent is an error and it should have a maximum subsidy of 20 percent. VII. FUTURE MEETINGS/EVENTS Benkowski expressed her disappointment in not being able to attend the May 1 joint City Council, Parks and Recreation Citizen Advisory Commission and Community Program Board meeting. She asked what took place at that meeting. Obiazor reported that the meeting was to discuss the community forum results and how the Community Program Board and the Parks and Recreation Commission should use that information. Obiazor said she would provide copies of the handouts from that meeting to Board members who were unable to attend. The next meeting of the Community Program Board is scheduled for Tuesday, June 26, 2001. VIII. ADJOURNMENT MOTION: Benkowski moved, seconded by Oswald, to adjourn the meeting. Motion carried, 5-0. The meeting was adjourned at 7:55 p.m.