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Council directs staff to adopt proposed Hogadon rates, drops preseason discount; sets 65% cost-recovery target and a 10% facility fee
Summary
After staff analysis, councilors directed staff to use the proposed rate schedule for the Hogadon ski area, end the preseason discount, set a cost-recovery goal of 65%, and approve a 10% facility fee to support capital needs including lift replacement.
City staff presented an analysis of proposed rate changes for the Hogadon ski area and recommended the council adopt staff rates, eliminate the preseason discount, set a higher recapture (cost-recovery) goal and approve a facility fee. Council discussion on July 20 resulted in council direction to adopt the staff proposal: no preseason discount for individual season passes, a 65% cost-recovery target, and a 10% facility fee.
Staff presenter Tom (filling in for Zalima) summarized market comparisons and internal modeling. He said comparable mountain facilities’ season-pass averages place Hogadon’s proposed adult season pass near the market median and that the local market is relatively inelastic — small price changes have limited impact on participation. Staff modeled three options; the primary revenue difference between the staff recommendation and a version keeping the preseason discount was roughly $27,000. The staff estimate included an assumed 8% demand destruction for the recommended change.
Councilors discussed tradeoffs: some councilors and residents said they valued the preseason discount because it lowers upfront cost and can protect customers against a poor snow year; others pointed out that preseason discounts reduce revenue that could support operations and capital needs. Brandy, a councilor who previously purchased a family pass at the preseason price, said she sometimes purchased early to save but had seasons with little snow.
By consensus, the council moved to: (1) adopt the staff-proposed rates (which eliminate the preseason discount for individual passes), (2) set the recapture goal at 65%, and (3) impose a 10% facility fee that councilors said would be used to support capital goals such as lift replacement. Staff said the facility fee revenue would be the mechanism to fund capital replacement (for example, a new lift); the cost-recovery percentage is for operating recapture and will not alone pay for lift replacement.
Staff committed to tracking demand and reporting outcomes after the season and to provide post-season analysis of the policy’s effects.
