Financing Municipal Recreation and Parks

1. Financing Municipal Recreation and Parks

2. Financing Overview • Historic Perspective • Revenue Sources

3. Financing Methods • User fees • Revenue generating facilities • Tapping community resources • Grant writing • Financing capital projects • Managing financial resources

4. Develop new facilities Offer new programs Non-public funded services Recover costs Reduce for-profit complaints Assess program Charge non-residents Measure appreciation Control vandalism Discourage abuse Reduce crowding Charging Fees PROS

5. Restrict participation Reduce funding support Decrease public’s willingness to pay Success measured by revenue produced not quality of programs Cost of collecting revenue Charging Fees CONS

6. Types of Fees • Entrance/Parking • Admission • Program • Sales • Permit/License • Rental • Facility Usage • Special Service

7. Setting Prices • Charge no fee • Charge nominal fee • Charge fee to recover: • direct costs • direct and indirect costs • all costs

8. Break-Even Formula P= I + O + RF + CS S • P-Price • I-Instructor’s fee • O-Overhead • RF-Rental fee • CS-Consumable supplies • S-Students

9. Increasing Revenue • Shorter time periods • Creative program names • Offer profit making programs • Offer unique programs • Use volunteers • No senior citizen discounts • Enlist staff help to meet goals • Implement non-resident fees

10. Research other agencies Be creative Explain your fees Create added values Do your homework Value priced Think like a business Revenue based split Base fee on minimum Know fee history Keep records Pricing Keys

11. Revenue-Producing Facilities • Existing facilities • Specialized facilities

12. Revenue-Producing Facilities • Feasibility study • Enterprise Fund Accounts

13. Revenue-Producing Facilities • Golf courses • Miniature golf courses • Ice rinks • Picnic pavilions • Street/In-line hockey rinks

14. Revenue-Producing Facilities • Batting cages • Driving ranges • Swimming pools & water activity areas • Recreation centers • Concessions/gift shops

15. Tapping Community Resources • New and additional Dollars • Friends groups • Establish support foundations • Adopt parks and trails • Gift catalogs • Fund raising activities

16. Tapping Community Resources • Increase volunteerism • Partnerships and collaborative ventures • Business sector • Advertising opportunities • Sponsorship

17. Grants • Supplement local funds • Land acquisition • Parks and recreation development projects

18. Grants • DCNR-Land and Water Conservation Fund • www.dcnr.state.pa.us

19. Grants • DEP-Growing Greener Fund • www.dep.state.pa.us/growgreen • PA Council on the Arts • www.pacouncilonthearts.org

20. Foundations • Directory of Pennsylvania Foundations • www.upenn.edu/research/Pafoundations.htm • Foundation News • www.foundationnews.org • Community Foundations for Pennsylvania • www.communityfoundations.org

21. Funding Proposal Timeline 12 + Weeks Research funding 10-12 Weeks Send inquiry letter 6-8 Weeks Call for interview 4-6 Weeks Initial interview 2-3 Weeks Write proposal Now Submit proposal 1 Week After Follow-up call 2 Weeks Later Follow-up visit 2-36 Weeks Later Get decision

22. Financing Capital Projects • Pay-as-you-go • Acquire funds before project without debt • Pay-as-you-use • Repay debt while project is being used

23. Why Pay-As-You-Go • Eliminate interest charges • Only spend available revenue • Evaluate capital projects before approval • Postpone projects to avoid increasing taxes • Easier raise funds to build than pay off debt • Debts not passed on to future generations

24. Why Pay-As-You-Use • Postponement of projects often increases costs • As per capita increases debt repayment represents a smaller share on income • Financial burden of project is placed on current, and future, residents • Families moving in help pay cost with tax dollars

25. Managing Resources • Planning ahead • Compare fees • Outside consultants • Current trends and issues • Weigh maintenance support • Design for lower maintenance and operational costs • Consider shared usage

26. Use in-house resources Storage space Consulting Catering contract Facility Rental Photo rights Limited Resources

27. Use in-house resources Agricultural land Cell towers Utility fees Forest products Maintenance services Limited Resources

28. Rethink who provides what Hosting interns Purchasing services Joint services Employment programs Limited Resources

29. Rethink who provides what Combine services Contract out Sell/give facilities away New taxes Limited Resources

30. Employ customer service practices Stay open longer Set high customer goals Use telephone Be friendly Marketing Tools

31. Employ customer service practices Serve refreshments Give gifts Be enthusiastic Be neat Marketing Tools

32. Promote programs and services Use visual tools Program guide Demonstrate Post cards Marketing Tools

33. Promote programs and services Take-out boxes Reach out Referrals Marketing Tools

34. Make it easier to purchase Accept credit cards Offer installment payments Give away free programs Offer gift certificates Marketing Tools

35. Use the written word Pursue free publicity Reprint newspaper stories Prove people appreciate services Use classified ads Transform business cards, letterheads, forms Marketing Tools

36. Cost Saving Strategies • Rethink Recurring Costs • Analyze attendance statistics • Shut down low usage, or damaged, facilities • Reduce, eliminate, non-break even programs • Institute safety programs, reduce injuries • Utilize staff management strategies • Merge staff departments • Computerize operations

37. Cost Saving Strategies • Analyzing Personal Costs • Examine part-time staff usage • Evaluate empty full-time staff positions • Consolidate positions/responsibilities • Streamline labor-intensive tasks • Purchase equipment w/ goal of saving costs • Increase staff productivity • Audit overtime • Invest in staff training

38. Cost Saving Strategies • Reduce Equipment Costs • Practice good preventative maintenance • Institute equipment replacement schedule • Install automatic timers • Reduce equipment use by staff • Look at lifecycle costing • Sell used equipment • Use lease-purchase agreements

39. Cost Saving Strategies • Reduce Equipment Costs (cont.) • Barter • Share equipment • Purchase surplus property • Purchase supplies jointly • Use competitive bidding • Pennsylvania Correctional Industries • Conserve energy

40. Cost Saving Strategies • Maintain Insurance • DCED Governor’s Center for Local Government Services-Risk Managers Insurance Guide • http://localgov.inventpa.com

41. Pennsylvania Department of Conservation and Natural Resources Bureau of Recreation and Conservation Rachel Carson State Office Building P.O. Box 8475 Harrisburg, PA 17105-8475 717.787.7672 Pennsylvania Recreation and Park Society, Inc. 2131 Sandy Drive State college, PA 16803 814.234.4272

42. Pennsylvania State Association of Township Supervisors 4855 Woodland Drive Enola, PA 17025 717.763.0930 Pennsylvania State Association of Boroughs