title
Resolution Adopting a Parks and Recreation Programs & Services User Cost Recovery Policy
body
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Department: |
Parks & Recreation |
Meeting Date: |
6/3/2025 |
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Contact Name: |
Amy Beatty |
Public Hearing: |
No |
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Contact Phone: |
910-341-5838 |
Advertising Date/Advertised By: |
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Attachments: |
Draft Cost Recovery Policy; Fee Assistance Program Form |
PURPOSE:
The purpose of this policy is to authorize the City Manager to establish a Parks and Recreation programs and services user cost recovery policy applying a tiered fee structure, based on the extent of community versus individual benefit methodology.
BACKGROUND:
The 2023 Parks, Recreation and Open Space Comprehensive Plan (PROSCP) recommended Wilmington adopt a Parks & Recreation cost recovery best practice approach, using a tiered user-fee structure, which categorizes programs based upon the level of benefit to the individual or community of the service being offered. This is a common practice throughout North Carolina local governments as well as other states.
In 2024, the City of Wilmington hired MGT Consulting to perform a study to analyze Parks and Recreation’s services, fees, and revenues with the objective of developing cost recovery options and a draft cost recovery policy. The contract scope included a review of the philosophies overviewed in the PROSCP, an analysis of current programs, services and fees, operating costs and program and service user fees received, and a cost recovery/revenue options and policy.
The study report was presented to City Council on November 7, 2024, and an overview of the draft policy was presented at City Council’s March 31, 2025 budget work session.
The programs and services cost recovery policy will serve as a key component to distinguish services, recognize the value of equitable pricing, promote financial stability, and reduce the burden on property tax payers to fund all services.
The policy will adopt a five-tiered fee structure methodology ranging from community benefit to individual benefit with corresponding fees paid by users, and less reliance on the general fund as tiers escalate. Importantly, the policy will help the department achieve a 25% cost recovery goal for services provided, a national standard.
Along with the cost recovery policy, staff recommends the adoption of a user fee assistance program with the purpose of assisting individuals and families with limited financial means an opportunity to participate in programs they may otherwise not be able to afford.
budget
BUDGET IMPACT:
It is estimated that the policy will generate $100,000 in fiscal year 2026.
recommendation
RECOMMENDATION / ACTION REQUESTED:
Staff recommends adoption of the resolution.