MEMORANDUM

2009 BUDGET LEGISLATION FISCAL NOTE

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Parks and Recreation	Michele Finnegan/684-8005	Jennifer Devore/615-1328

Legislation Title: AN ORDINANCE relating to the Department of Parks and Recreation; establishing the 2009 and 2010 fee schedule for the use of park properties and other park and recreation facilities and services; superseding previous park and recreation fee schedules; and amending Section 18.28.010 of the Seattle Municipal Code.

· Summary of the Legislation:

This legislation establishes the Department of Parks and Recreation’s (DPR’s) 2009 and 2010 Fee and Charges Schedule.

· Background:

DPR’s fees and charges are necessary to provide financial support for the operation and maintenance of DPR programs, facilities, and park grounds. The 2009 and 2010 DPR Fee Schedule includes new or increased fees to address inflation and improved cost recovery.

The revenue generated by these fees constitutes approximately 15% of the funding used for operating and maintaining the Parks facilities, excluding revenue associated with the Golf Program, which is addressed in Ordinance No. 121351. All fees collected from DPR activities and concessions are used exclusively for the Parks facilities, with the exception of fees related to the Joint Athletic Field Use Agreement with the Seattle Public Schools (SPS). The City schedules and collects fees for use of both City and the Seattle Public Schools athletic fields, retains a portion of the collected fee for the cost of scheduling SPS fields, and remits the balance to SPS.

DPR evaluates its fees and charges on an annual basis as part of the City’s budget process. Attachment 2 to the Ordinance “Changes from 2008 Adopted Fees and Charges to Proposed 2009 and 2010 Fees and Charges” reflects DPR’s proposed fee changes between 2008 and calendar years 2009 and 2010. DPR’s fees are reviewed to determine whether fee increases, or changes to the fee structure, are warranted, particularly in cases where specific fees are no longer compatible with the implementation of DPR’s CLASS scheduling system. The CLASS computer system, which is still being refined, continues to improve customer service and financial accountability at 56 community centers, pools and other locations by modifying business practices and implementing a system that supports program registration, web based self-service for program registration, facility booking, admissions, point-of-sale and integrated accounting for revenue collection.

Customers of Parks' programs and services will also benefit as they will be able to find out information and transact business in any Department facility and eventually from their own home by logging onto the web. This recently implemented computer system allows for on-line registration and significant improvements in revenue collection. Certain fee structures cannot be used with this new system, such as partial hourly fees or percentages, which necessitates changes in fee structures that have no fiscal impact. Improved cost recovery is a consideration when developing fee increases and implementing cost of living adjustments, consistent with the City of Seattle Department of Finance’s inflation guidelines.

Additionally, the legislation restructures and simplifies certain fees, and corrects previous misprints or omissions. These changes are identified in Attachment 2 to the Ordinance.

Please check one of the following:

____ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

___X_ This legislation has financial implications. (Please complete all relevant sections that follow.)

Summary of Changes to Revenue Generated Specifically From This Legislation:

Revenue Source

2009 Proposed

2010 Proposed

Total Fees and Charges Resulting From Passage of This Ordinance

Income from User Fees

$424,412

$448,912

*Notes: See Attachment 2 to the Ordinance for a complete list of changes. This revenue excludes revenue from golf that is addressed in separate golf management contracts that were approved by Ordinance 121351, and which totaled $9.03 million in the 2008 budget and $9.65 million in the 2009 Proposed.

Anticipated Total Revenue from Entire Program, Including Changes Resulting From This Legislation:

Fund Name and Number

Revenue Source

Total 2009 Revenue

Total 2009 and 2010 Anticipated Revenue from Entire Program

Parks and Recreation Fund (10200)

Income from User Fees

$ 19,393,167

$ 39,385,234

TOTAL

$ 19,393,167

$ 39,385,234

· What is the financial cost of not implementing this legislation?

Not implementing this legislation as proposed would require reductions in services or programs within the DPR’s 2009 and 2010 proposed budgets. Such reductions would impact the Department’s ability to generate revenue that is used to pay for costs associated with maintaining its facilities.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives

DPR staff are not aware of additional funding sources. In adjusting its Fees and Charges Schedule, the Department has considered all known external funding resources, such as grants and other one-time funding sources.

· Is the legislation subject to public hearing requirements?

While public hearings are not required, this legislation will be subject to public hearings as part of the 2009-2010 Budget process. Notices will be posted throughout the Parks system to notify users of the proposed fee schedule.

· Other Issues

The changes contained in this proposal are part of a concerted effort on the part of DPR to improve its overall fee structure, maintain costs and, to the extent possible, increase cost recovery. DPR will continue to review its fee policies and schedules, in terms of the economy, changes in park and recreation services provided by other local jurisdictions, and other internal and external factors affecting the Department’s budget.