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Financing Municipal Recreation and Parks. Financing Overview. Historic Perspective Revenue Sources. Financing Methods. User fees Revenue generating facilities Tapping community resources Grant writing Financing capital projects Managing financial resources. Develop new facilities
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Financing Overview • Historic Perspective • Revenue Sources
Financing Methods • User fees • Revenue generating facilities • Tapping community resources • Grant writing • Financing capital projects • Managing financial resources
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
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
Types of Fees • Entrance/Parking • Admission • Program • Sales • Permit/License • Rental • Facility Usage • Special Service
Setting Prices • Charge no fee • Charge nominal fee • Charge fee to recover: • direct costs • direct and indirect costs • all costs
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
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
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
Revenue-Producing Facilities • Existing facilities • Specialized facilities
Revenue-Producing Facilities • Feasibility study • Enterprise Fund Accounts
Revenue-Producing Facilities • Golf courses • Miniature golf courses • Ice rinks • Picnic pavilions • Street/In-line hockey rinks
Revenue-Producing Facilities • Batting cages • Driving ranges • Swimming pools & water activity areas • Recreation centers • Concessions/gift shops
Tapping Community Resources • New and additional Dollars • Friends groups • Establish support foundations • Adopt parks and trails • Gift catalogs • Fund raising activities
Tapping Community Resources • Increase volunteerism • Partnerships and collaborative ventures • Business sector • Advertising opportunities • Sponsorship
Grants • Supplement local funds • Land acquisition • Parks and recreation development projects
Grants • DCNR-Land and Water Conservation Fund • www.dcnr.state.pa.us
Grants • DEP-Growing Greener Fund • www.dep.state.pa.us/growgreen • PA Council on the Arts • www.pacouncilonthearts.org
Foundations • Directory of Pennsylvania Foundations • www.upenn.edu/research/Pafoundations.htm • Foundation News • www.foundationnews.org • Community Foundations for Pennsylvania • www.communityfoundations.org
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
Financing Capital Projects • Pay-as-you-go • Acquire funds before project without debt • Pay-as-you-use • Repay debt while project is being used
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
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
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
Use in-house resources Storage space Consulting Catering contract Facility Rental Photo rights Limited Resources
Use in-house resources Agricultural land Cell towers Utility fees Forest products Maintenance services Limited Resources
Rethink who provides what Hosting interns Purchasing services Joint services Employment programs Limited Resources
Rethink who provides what Combine services Contract out Sell/give facilities away New taxes Limited Resources
Employ customer service practices Stay open longer Set high customer goals Use telephone Be friendly Marketing Tools
Employ customer service practices Serve refreshments Give gifts Be enthusiastic Be neat Marketing Tools
Promote programs and services Use visual tools Program guide Demonstrate Post cards Marketing Tools
Promote programs and services Take-out boxes Reach out Referrals Marketing Tools
Make it easier to purchase Accept credit cards Offer installment payments Give away free programs Offer gift certificates Marketing Tools
Use the written word Pursue free publicity Reprint newspaper stories Prove people appreciate services Use classified ads Transform business cards, letterheads, forms Marketing Tools
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
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
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
Cost Saving Strategies • Reduce Equipment Costs (cont.) • Barter • Share equipment • Purchase surplus property • Purchase supplies jointly • Use competitive bidding • Pennsylvania Correctional Industries • Conserve energy
Cost Saving Strategies • Maintain Insurance • DCED Governor’s Center for Local Government Services-Risk Managers Insurance Guide • http://localgov.inventpa.com
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
Pennsylvania State Association of Township Supervisors 4855 Woodland Drive Enola, PA 17025 717.763.0930 Pennsylvania State Association of Boroughs