Laserfiche WebLink
City Council <br />property tax revenue <br />Meeting Minutes November 6, 2019 <br />• FY21 budget General Fund property tax revenue could potentially face <br />significant constraints due to S132 -property tax cap and pending changes to <br />over 65 property tax <br />Setting fees based on cost recovery accomplishes the following: <br />• Diversifies revenue to reduce property tax dependency <br />• Utilizes tax dollar subsidies on community based programs <br />• Meets state mandates requiring all user fees be justifiable <br />• Moves toward self funding programs the community currently enjoys <br />Ms. Neel reminded the Council of the Cost Recovery Methodology. <br />Ms. Neel explained the fee calculation formula. (Direct Cost * Cost Recovery <br />target %) / # of participants <br />Direct & direct overhead: <br />• Staff leading programs, direct program supervision/support <br />• Supplies, transportation, insurance, utilities, contract services, direct facility <br />maintenance <br />Indirect cost (not allocated): Capital improvements, on-going facility <br />maintenance, director/assistant director, management, shared services, <br />professional development <br />Cost Recovery Target % <br />Each program has been assigned to a level within the cost recovery pyramid <br />with each level having a target cost recovery range. <br /># of Participants <br />The volume of participants has been based on actual usage. <br />Mr. Wells explained that once of the first things that Staff did after identifying <br />what the costs were associated with all of the Parks and Recreation programs <br />was conducting an evaluation of all of their programs and services. He then <br />explained that Staff reviewed the program and where it fell on a pyramid <br />ranking based on beneficiary. Staff evaluated if the programs were community <br />beneficial or more individually beneficial. <br />Mr. Wells reviewed the proposed Parks & Recreation Cost Recovery ,and <br />explained that the recommended target cost recovery for year one is $721,000 <br />which would cover 28% of the direct cost. <br />Mr. Wells provided that the Gap between target cost recovery and proposed <br />City of San Marcos Page 2 <br />