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City Council Meeting Minutes February 18, 2020 <br />Drew Well, Director of Parks and Recreation and Jamie Lee Case, Assistant <br />Director of Parks and Recreation led the presentation. <br />Mr. Wells discussed the General Fund FY20 Budget. <br />• Parks & Recreation Dept (PARD) operating budget consumes — $5.3M or 6% <br />of the FY20 budget <br />• PARD Programs generate $545K in revenue with $4.8M supported by sales & <br />property tax revenue <br />• FY21 budget General Fund property tax revenue could potentially face <br />significant constraints due to SB2-property tax cap and pending changes to <br />over 65 property tax. <br />Please See EXHIBIT A: Operating Budgets Compared to other Cities <br />(attached) <br />Setting fees based on cost recovery accomplishes the following: <br />• Diversifies revenue to reduce property and sales 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 />He explained fee calculation using the cost recovery pyramid methodology. <br />He provided the timeline on how we got to this point: <br />Nov. 6, 2019: Provided proposed assumptions in finalizing cost recovery <br />implementation for Parks and Recreation Programs and Services. <br />• Council provided direction to move forward with taking the proposed <br />assumptions to the Parks and Recreation Advisory Board for their <br />recommendation <br />Dec. 19, 2019: The Parks and Recreation Advisory Board created a committee <br />to review the proposed fees and to bring back a recommendation to the Board. <br />Jan 13, 2020: The Board received the committee's recommendation and <br />adopted a Recommendation Resolution recommending the proposed fees <br />within this presentation. <br />Summary of Changes: <br />• Simplify to only use "Resident" or "Non -Resident" fee categories. <br />City of San Marcos Page 2 <br />