DEPARTMENT: Parks, Facilities, and Fleet Management
FILE TYPE: Regular Information
TITLE
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Review Of Parks Cost Recovery Framework And Discussion On Parks Funding Strategy
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PURPOSE/ACTION REQUESTED
Discuss the Parks Department's current cost recovery framework and the previously reviewed purpose and objectives of utilizing cost recovery metrics, particularly in the development of fees or to adapt service delivery to better align with County goals. Provide guidance on the continued use of the current cost recovery framework or direct staff to reevaluate. Discuss potential strategies to create consistent and reliable funding for the Parks Department and provide guidance to staff if all, some, or none of the options provided should be explored further.
SUMMARY
Cost Recovery Background: The Dakota County Parks Visitor Services Plan (VSP) was approved by the Dakota County Board of Commissioners by Resolution No. 17-541 (October 31, 2017). The VSP established goals to provide services that were relevant and accessible to more people, make the best use of investments in the park system, and provide services in a cost-effective, responsible manner. In particular, the plan included a recommendation to measure and track cost recovery levels. Since approval of the VSP, staff has also received feedback from the County Board regarding the need to evaluate Park user fees and charges.
Definition of Cost Recovery: Cost recovery is the amount of operational cost that is offset (i.e., recovered) by revenue other than taxes, such as user fees and charges. Measuring and tracking cost recovery levels does not necessarily create an initiative to generate more user fee revenue. Instead, the purpose is to:
* Identify the total cost of providing services;
* Determine the degree that the overall community benefits from each service versus the extent that specific users benefit; and
* Develop goals on how each service is funded in terms of the percentage of tax versus non-tax ...
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