Consultant lays out fee‑increase scenarios to stabilize Concord recreation funds

Concord — The Recreation Commission on June 25 received a financial sustainability presentation from Jesse Myatt of BerryDunn that warned the department’s revolving and BD enterprise funds could fall below full cost recovery over the next several fiscal years unless changes are made.

Myatt said the analysis examined closed fiscal years 2024 and 2025 and near‑complete 2026 results, then modeled forward. He reported that the revolving fund recovered slightly more than its direct expenses in recent years (about 104% and 102% on a direct‑cost basis) but that adding townwide indirect charges (HR, IT, administration) pushes cost‑recovery below 100% in some years.

"If we do nothing at the moment, we will see that continued downward trajectory over the next three or four fiscal years," Myatt said, recommending the commission consider scenarios to change the trajectory. He described a three‑option approach: a conservative adjustment (a one‑time ~5% increase), a middle path and a more aggressive one‑time increase. Myatt said the work is not an across‑the‑board percentage; the team proposes categorizing programs by community vs. individual benefit and targeting fees accordingly.

Myatt gave rough targets for additional annual revenue: about $300,000–$350,000 from a modest 5% option, roughly $400,000 to improve the BD enterprise fund, and up to $500,000 in additional annual revenue as a mid‑range goal for the revolving fund to restore a healthy reserve as out‑years grow more costly. "We re gonna be targeting about a half million dollars of additional annual revenue in the next three to four years," he said.

Select board liaison Paul Bohm asked whether the more favorable scenarios included indirect charges. Myatt answered that the "green" scenario shown in the slides was fully loaded and did include indirect town charges.

Commissioners pressed for detail on what was driving the expense increases; Myatt pointed to personnel additions, rising benefit costs and inflationary pressures for utilities and facility upkeep, and noted BD (the swim and fitness enterprise) is now about 20 years old and faces inevitable capital needs such as boilers and roofs.

Myatt and staff said they will not recommend measures that would create undue financial barriers: a steep fee hike could reduce participation and ultimately harm revenue. Instead, the consultant proposed a combination of targeted fee adjustments, expense levers and a phased approach, and emphasized soliciting commissioner and staff input.

Next steps: staff will email commissioners a worksheet to categorize programs (community benefit vs. individual benefit) and ask members to return it to staff (completed individually to avoid prohibited serial discussions). Staff will incorporate those inputs with updated FY26 actuals (expected after year close this summer) and present an updated model for discussion in August–September with a public‑engagement plan to follow.

The commission did not take a vote on fees at the meeting; commissioners agreed to review the next iteration before deciding whether to pursue public outreach or bring options to the select board or FinCom.