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HomeMy WebLinkAbout3.B. Recreation Fires 3.~, CITY OF SHAKOPEE MEMORANDUM To: Mayor and City Council Mark McNeill, City Administrator From: Mark Themig, Facilities and Recreation DirectC?r Meeting Date: City Council Workshop, August 28, 2003 Subject: Township Recreation Fees In 2002, I proposed options to the Parks and Recreation Advisory Board and Townships that would revise the Township Recreation Fee program we have for Jackson and Louisville Township residents. The revised program was intended to better reflect City costs, help alleviate confusion that township residents frequently have regarding their non-resident status, and simplify the administration of the program. This spring, I met with representatives from both Louisville and Jackson Townships (Jerry Mareck and John Weckman) to discuss the proposal. Jackson Township indicated a willingness to streamline the non-resident fee billing process for recreation programs as proposed. Louisville Township was interested in continuing the current relationship. From my discussion, it appeared that neither township is interested in providing any additional support for park maintenance activities through their township contributions. However, Jackson Township did offer the use of their ball field for City activities, which the Baseball Association is considering. Also, neither township indicated an interest in the concept of providing a lump-sum amount in exchange for eliminating the non- resident fee for use of the Community Center, Skate Park, or Aquatic Park. One request that I did receive during these meetings was that we bill the townships in a timelier manner. In the past, invoices for the previous year were sent out in late summer or early fall. This year, invoices for the 2002 calendar year were issued in May. I did not attend a full township board meeting to more formally present these concepts, but would be willing to if Council and the Townships would find this desirable. ~~~~~ ~~ SHAKOPEE December 13, 2002 PARKS & RECREATION DEPARTMENT Mr. Jim Theis Louisville Township Board 956 - 150th Street West Shakopee, Minnesota 55379 Subject: Township Recreation Fees Dear Mr. Theis: I am writing to provide you with the invoice for the 2001 recreation program non-resident fees, and to discuss the future of the township fee program. 2001 Recreation Fees The attached report indicates a total of 245 program registrations, for a total payment of $2,450. Our Finance Department has included an invoice for you in this amount. Future of Township Fee Proqram As you may know, we have different non-resident fee agreements for (1) Jackson Township, (2) Louisville Township, (3) residents of the school district who live in'Prior Lake and Savage city limits, and (4) other non-residents of Shakopee. These agreements only apply to recreation program fees. Non-resident rates for Community Center memberships and daily admission, Skate Park daily admission, and Aquatic Park punch cards are assessed to anyone residing outside the Shakopee City limits, including your township residents. While the current agreements benefit residents of the townships, they have created issuesin administering the program. For example, we frequently encounter residents of the townships that don't understand why they are required to pay a non-resident fee when their address says "Shakopee". We have even had some who don't realize that they are not in the City limits. In a joint work session with City Council earlier this year, we discussed coming up with a new way to administer township non-resident fees. In my presentation at that meeting, I brought up the idea of having the townships pay a single charge for all recreation services that the City provides. This would give Louisville Township residents access to all our services at the resident rate, allow them to register at the same time as residents, and simplify the administration of the non-resident fee program. In June of this year, I presented this concept to our Parks and Recreation Advisory Board, with an analysis of general fund subsidy the City pays for Parks and Recreation Services, as well as a history of fees paid by the two townships (attached). The Parks and Recreation Advisory Board supported working with the Townships to come up with a single fee. However, they also indicated that the fee should reflect some amount to cover operational costs for park maintenance and Community Center/Aquatic Park/Skate Park operations, which are currently subsidized by City taxes. (The current COMMUNITY PRIDE SINCE 1857 1255 Fuller Street. Shakopee, Minnesota 55379-1351 · 952-233-3330 . FAX 952-233-3331 www.ci.shakopee.mn.us . parks@ci.shakopee.mn.us Township non-resident fee agreement doesn't provide for support of these services, which some of your residents use.) I would like to propose that we consider revising the current township fee agreement to implement the single fee concept. This fee would include some compensation for services the City provides related to park maintenance, Community Center/Skate Park operations, and Aquatic Park operations. For your consideration, I have calculated an amount for each of these services based on the actual number of households in your township that used these services in 2001 : Item 2003 Annual Charge Calculations/Comments Recreation $5,330 Fee based on total Louisville Township fees Program Fee collected in 2001, plus average annual increase between 1995-2001 of $185. Annual Increase = $185 Increase amount based on average annual increase between 1995-2001, Fee formula would be reviewed every five years and adjusted based on use. Park Maintenance $2,340 Fee based on 48 Louisville Township households Fee (approximately 12% of all township households) participating in programs that used park facilities during 2001, multiplied by the current per-household City subsidy for park maintenance services ($49.76). Annual Increase = 3% $70 Fee formula would be reviewed every five years and adiusted based on use. Community Center $2,990 Fee based on 12% of township households (from Skate Park above), multiplied by current per-household City Aquatic Park Fee subsidy for recreation services ($60.85) Annual Increase = 3% $90 Fee formula would be reviewed every five years and adiusted based on use. Total $10,660 *Fee would be paid by Township. No additional fees would be assessed to participants. By implementing a single fee concept as proposed (or with modifications), J believe that we can eliminate confusion among township residents, reduce administrative issues, and create a better partnership for the residents we serve. I would be interested in hearing your thoughts on this concept. I can be reached at 952-233-3837, bye-mail at mthemig@ci.shakopee.mn.us, or in writing at the above address. Thank you for your time. Sincerely, ~ ~'-~'\ 'v~ Mark Themig Facilities and Recreation Director Township Non-Resident Fee Analysis 2002 Shakopee Per Household General Fund Subsidy The following illustrates the tax subsidy provided for Parks and Recreation services in Shakopee, based on 2002 budgeted revenue and expenditures, and 2002 estimated households (8,340): Service Total Budgeted Fees and Subsidy Subsidy from Subsidy per Expenditures Charges Residential Household (Approx. 60%) (8,340) , Recreation $1,480,660 $634,830 $845,830 $507,498 $60.85 · Programs · Aquatic Park · Comm Ctr · Ice Arena · Park Services Park $691,600 0 $691,600 $414,960 $49.76 I Maintenance Total $2,172,260 $634,830 $1,537,430 $922,458 $110.61 Histo of Townshi Resident Fees* Township Pays Jackson Township: 15 and under $0 (Townshi a s the $21 non-resident fee.) Jackson Township: 16 and older $21 Louisville Township: all ages $11 Township pa s $10 of the non-resident fee. * According to staff, current non-resident fee was determined based on City subsidy amount, divided by an average of three registrations per household. Past Payment Historv: Jackson Township Year Number of Non-Resident Fee Non-Resident Fee Paid Total Charge Activities Paid Bv Township bv Participant 1995 224 $2,868 Not Available $2,868 1996 223 $4,683 Not Available $4,683 1997 264 $5,544 Not Available $5,544 1998 277 $5,796 $210 $6,006 1999 238 $5,292 0 $5,292 2000 231 $4,620 0 $4,620 2001 299 $6,279 $63 $6,342 Louisville Township Year Number of Non-Resident Fee Non-Resident Fee Paid Total Charge Activities Paid Bv Township bv Participant 1995 192 $1 ,920 $2,112 $4,032 1996 195 $1,950 $2,145 $4,095 1997 221 $2,210 $2,431 $4,641 1998 200 $1,940 $2,200 $4,140 1999 -189 $1,848 $2,079 $3,927 2000 151 $1,510 $1,661 $3,171 2001 245 $2,450 $2,695 $5,145 Theoretical Charge Based on the Number of Township Households and 2002 City of Shakopee Per Household Subsidy Township Number of Recreation Park Maintenance Total Subsidy Households* Subsidy Subsidy Charge ($60.85/household) ($49.76/household) Jackson 461 $28,051.85 $22,939.36 $50,991.21 Louisville 410 $24,948.50 $20,401.60 $45,350.10 *Based on 2000 Census data. ~ d~~~ _ ~-~CM- ~6 ~~~ SHAKOPEE ..... F-o--t.... ~' ~ ~ F~ PARKS & RECREATION DEPARTMENT - ~~Q&)~~eCemb~ ~ ~'T . Ms. Rosalyn Menke Jackson Township Board 920 Rosewood Circle Shakopee, Minnesota 55379 Subject: Township Recreation Fees Dear Ms. Menke: I am writing to provide you with the invoice for the 2001 recreation program non-resident fees, and to discuss the future of the township fee program. 2001 Recreation Fees The attached report indicates a total of 299 program registrations, for a total payment of $6,279. Our Finance Department has included an invoice for you in this amount. Future of Township Fee Proqram As you may know, we have different non-resident fee agreements for (1) Jackson Township, (2) Louisville Township, (3) residents of the school district who live in Prior Lake and Savage city limits, and (4) other non-residents of Shakopee. These agreements only apply to recreation program fees. Non-resident rates for Community Center memberships and daily admission, Skate Park daily admission, and Aquatic Park punch cards are assessed to anyone residing outside the Shakopee City limits, including your township residents. While the current agreements benefit residents of the townships and recognize our role in providing services to Township residents, they have created issues in administering the program. For example, we frequently encounter residents of the townships that don't understand why they are required to pay a non-resident fee when their address says "Shakopee". We have even had some who don't realize that they are not in the City limits. In a joint work session with City Council earlier this year, we discussed coming up with a new way to administer township non-resident fees. In my presentation at that meeting, I brought up the idea of having the townships pay a single charge for all recreation services that the City provides. This would give Jackson Township residents access to all our services at the resident rate, allow them to register at the same time as residents, and simplify the administration of the non-resident fee program. There seemed to be some level of support from the Jackson Township Board to explore this further. In June of this year, I presented this concept to our Parks and Recreation Advisory Board, with an analysis of general fund subsidy the City pays for Parks and Recreation Services, as well as a history of fees paid by the two townships (attached). The Parks and Recreation Advisory Board supported working with the Townships to come up with a single fee. However, they also indicated that the fee should reflect some amount to cover operational costs for park maintenance and Community Center/Aquatic COMMUNITY PRIDE SINCE 1857 1255 Fuller Street. Shakopee, Minnesota 55379-1351 . 952-233-3830 . FAX 952-233-3831 www,ci.shakopee.mn.us . parks@ci.shakopee.mn.us Park/Skate Park operations, which are currently subsidized by City taxes. (The current Township non~resident fee agreement doesn't provide for support of these services, which some of your residents use.) I would like to propose that we consider revising the current township fee agreement to implement the single fee concept. This fee would include some compensation for services the City provides related to park maintenance, Community Center/Skate Park operations, and Aquatic Park operations. For your consideration, I have calculated an amount for each of these services based on the actual number of households in your township that used these services in 2001 : Item 2003 Annual Charge Calculations/Comments Recreation $6,850 Fee based on total Jackson Township fees collected Program Fee in 2001, plus average annual increase between 1995-2001 of $580. ,Annual Increase = $580 Increase amount based on average annual increase between 1995-2001. Fee formula would be reviewed every five years and adjusted based on use. Park Maintenance $2,390 Fee based on 48 Jackson Township households Fee (approximately 10% of all township households) participating in programs that used park facilities during 2001, multiplied by the current per-household City subsidy for park maintenance services ($49.76). Annual Increase = 3% $70 Fee formula would be reviewed every five years and adiusted based on use. Community Center $2,800 Fee based on 10% of township households (from Skate Park above), multiplied by current per-household City Aquatic Park Fee subsidy for recreation services ($60.85) Annual Increase = 3% $80 Fee formula would be reviewed every five years and adiusted based on use. Total $12,040 *Fee would be paid by Township. No additional fees would be assessed to participants. By implementing a single fee concept as proposed (or with modifications), I believe that we can eliminate confusion among township residents, reduce administrative issues, and create a better partnership for the residents we serve. I would be interested in hearing your thoughts on this concept. I can be reached at 952-233-3837, by e~mail at mthemig@ci.shakopee.mn.us, or in writing at the above address. Thank you for your time. Sincerely, ~ \~~ \ '~ Mark Themig Facilities and Recreation Director Township Non-Resident Fee Analysis 2002 Shakopee Per Household General Fund SUbsidy The following illustrates the tax subsidy provided for Parks and Recreation services in Shakopee, based on 2002 budgeted revenue and expenditures, and 2002 estimated households (8,340): Service Total Budgeted Fees and Subsidy Subsidy from Subsidy per Expenditures Charges Residential Household (Approx. 60%) (8,340) Recreation $1,480,660 $634,830 $845,830 $507,498 $60.85 · Programs · Aquatic Park · Comm Ctr · Ice Arena · Park Services Park $691,600 0 $691,600 $414,960 $49.76 Maintenance Total $2,172,260 $634,830 $1,537,430 $922,458 $110.61 Histo of Townshi Resident Fees* Township Pays Jackson Township: 15 and under $0 (Township a s the $21 non-resident fee. Jackson Township: 16 and older $21 Louisville Township: all ages $11 Township pa s $10 of the non-resident fee. *According to staff, current non-resident fee was determined based on City subsidy amount, divided by an average of three registrations per household. Past Payment History: Jackson Township Year Number of Non-Resident Fee Non-Resident Fee Paid Total Charge Activities Paid By Township by Participant 1995 224 $2,868 Not Available $2,868 ...- 1996 223 $4,683 Not Available $4,683 cO'J 1997 264 $5,544 Not Available $5,544 1b,1J 1998 277 $5,796 $210 $6,006 ~ ~l- 1999 238 $5,292 0 $5,292 2000 231 $4,620 0 $4,620 I 2001 299 $6,279 $63 $6,342 ./ Louisville Township Year Number of Non-Resident Fee Non-Resident Fee Paid Total Charge Activities Paid By Township by Participant 1995 192 $1,920 $2,112 $4,032 1996 195 $1,950 $2,145 $4,095 1997 221 $2,210 $2,431 $4,641 1998 200 $1,940 $2,200 $4,140 1999 189 $1,848 $2,079 $3,927 2000 151 $1,510 $1,661 $3, 171 2001 245 $2,450 $2,695 $5,145 Theoretical Charge Based on the Number of Township Households and 2002 City of Shakopee Per Household Subsidy Township Number of Recreation Park Maintenance Total Subsidy Households* Subsidy Subsidy Charge ($60.85/household) ($49.76/household) Jackson 461 $28,051.85 . $22,939.36 $50,991.21 Louisville 410 $24,948.50 $20,401.60 $45,350.10 *Based on 2000 Census data.