Parks staff proposes five‑level cost‑recovery pyramid, adds district overhead to program pricing

Parks and recreation staff presented a multi‑part proposal to standardize how the district sets program prices and measures cost recovery, urging the committee to review a five‑level "pyramid" that ties price ranges to community benefit and intended outcomes. "We have applied a district admin overhead allocation," the presenter said, noting the 15% administrative allocation will be combined with an existing 20% parks overhead to better reflect true program costs.

The presenter told the committee the approach separates direct program costs (personnel, materials, contractors) from indirect costs and capital, and that the pyramid will help staff and the board set recommended ranges for community, youth and adult programming. Staff said data pulled from 2024 post‑program financials shows wide variation across events: some special events posted roughly 14–16% cost recovery while programs such as Camp Sky and certain youth offerings reached substantially higher rates. "This is an evolution," the presenter said, asking the committee for feedback that will shape materials included in the board packet next week.

Committee members pressed staff to show both expense detail and revenue sources (grants, sponsorships and in‑kind donations) in future reports so the board can see full recovery, not just user fees and property tax support. One member urged treating some in‑kind gifts as sponsorship rather than implicit free use because donated labor and facilities still impose district costs. Staff committed to add the 15% allocation to the packet, flag programs that staff propose to reclassify, and return with a follow‑up meeting focused on business recreation operations and final recommended ranges.