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Home My WebLink About _ 4.6(a)--Approve changes to Council Policy 806 � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: June 3,2025 FROM: Travis Menne, Director of ITElVI NO. 4.6(a) Community Services ***APPROVED BY*** b Nri M ;�* xr.xk�� , , ��` � ��.�� ,�„ Tra��s ��nc, �r�c�r��`t��s�n�unit�5��°iccs 5€�2'�ti?�� te�r� �, ;� � �r� ��`28�'?C}�S tmenne@cityofredding.org btippin@cityofredding.org SUBJECT: 4.6(a)--Adopt Resolution and approve changes to Council Policy 806 Recommendation Adopt Resolution revising City Council Policy No. 806 (Recreation Classes and Program Fees), to include increased cost recovery and an additional 15 percent administrative fee, as recoinmended by the Community Services Advisory Commission at its regular meeting held on 1VIay 14, 2025. Fiscal Impact The combined proposed adjustments are projected to generate an additional $45,000 in revenue for Community Services Department's Recreation Division (Recreation), leading to a 3.7 percent annual reduction in anticipated General Fund expenses for the Fiscal Years 2025 to 202'7. Revenue targets for this period have also been raised to reflect additional program costs to align with the overall market conditions, increased program expenses, and rising staff costs. Alternative Action Ci2y Council (Council) could choose not to adopt the resolution or approve changes to Council Policy 806 and provide staff with alternate direction. Backg�ound/Analysis In J�uly 2001, the Council approved City Council Policy 806, establishing criteria for setting fees for recreation classes and programs. The policy was last updated in November 2019, and currently requires fees for classes and programs to be set at rates that recover a target percentage of the direct cost to provide the programs. The policy defines direct cost as materials, supplies, and part-time personnel costs required to conduct the specific class or program. Administration personnel, facilities, and overhead costs are not included in the cost recovery. The current target for youth classes and programs is 90 percent, and 105 percent for adults. Since adopting the Report to Redding City Council May 28,Z025 Re: 4.6(a)--Approve changes to Council Policy 806 Page 2 policy in 2001, Recreation has successfully met or exceeded the cost recovery targets for both youth and adult fee-based programs. As the City of Redding (City) works to balance its upcoming budget, staff is tasked with either generating additional revenues or reducing program costs. Recreation operates as a service to the community and does not fu11y recover all its costs. After accounting for a11 revenue, the annual cost to the City for these services is approximately $1.22 million. Increasing revenue is essential to maintain staffing and service levels consistent with prior budget years. To address this challenge, staff is proposing adjustments to Council Policy 806. For youth programming, this report recommends keeping the cost recovery percentage for City residents unchanged at 90 percent. For participants living outside of the City, however, the cost recovery percentage should be adjusted to 100 percent of direct costs in order to eliminate the subsidization of programming for non-residents. Furthermore, for al1 programs, it is recommended that an administrative fee of 15 percent of the program's cost be added to help recuperate some of the non-direct and overhead expenses of the department. In addition to the program fee, since November 2010, Recreation participants pay a Technology Surcharge Fee of five percent on all fee-based programs. This fee covers technology-related expenses including registration software and various marketing and design expenses. To gauge the palatability of these changes, staff compared Recreation's offerings to the 1oca1 market offerings. Summer camps are typically the program with the highest participant cost. Staff found other comparable camp programs charge between $230 (YlVICA) and $26'7 (Sun Oaks) per week, per participant. For a Redding resident in the 2026 season, staff anticipates increasing City-run camp programs would slightly increase from $205 to $225 for residents and $250 for non-residents. Staff believes the fees are reasonable given the additional services provided as opposed to comparable camps, which include weekly field trips and Aquatic Center visits. These costs wi11 fall within the reasonable market rate for camps in the Redding area. Updates to the policy wi11 be reflected in Recreation programs beginning in August 2025. Envi�^onmental Review This is not a project defined under the California Environmental Quality Act and no further action is required. Council P�^io�ity/City Manage� Goals • Budget and Financial Management — "Achieve balanced and stable 10-year Financial Plans for all Funds." Attachments ^Resolution ^Updated Council Policy 806_Clean ^Updated Council Policy 806_Strikethrough 2019_Dec 3 Staff Report Regarding Rec Fee Policy 2019 Dec 17 Staff Report Adopting Reso Confirming Revisions to Council Policy$06 RESOLUTION NO. 2025- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING ADOPTING REVISIONS TO CITY COUNCIL POLICY NO. 806, RECREATION CLASSES AND FEES WHEREAS, in January 2001 the City Council of the City of Redding adopted Resolution No. O1-108 establishing cost recovery targets when setting fees for recreation classes and programs; and WHEREAS, the Recreation Division sets program fees quarterly based on program expenses and participation levels; and WHEREAS,the State of California passed legislation in Apri12016 raising the minimum wage increinentally from$10 to$15 per hour by January 1,2022,for employers with 26 employees or more; and WHEREAS,in December 2019,policy was updated to be set at rates that recover a target percentage of the direct cost to provide the programs; and WHEREAS,implementation of this policy will provide staff with direction to update fees regularly to reflect existing conditions and exempts free programs; and WHEREAS, implementation of this policy will provide staff the ability to include an administrative fee and an increase to the cost recovery percentage to non-Redding residents to decrease general fund subsidy for programming; NOW, THEREFORE,TT IS HEREBY RESOLVED by the City Council of the City of Redding that revised City Council Policy No. 806, as attached hereto, is adopted. I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 3rd day of June, 2025, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: JACK MUNNS, Mayor ATTEST: FORM APPROVED: SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney u��p� CITY OF REDDING, CALIFORNIA �`""°"`'�� COLTNCIL POLICY SUBJECT RESOLUTION PO�ICY EFFECTIVE PAGE NUMBER NUMBER DATE Recreation Classes and Program Fees 01-108 806 6-5-01 1 BACKGROUND The City of Redding's Recreation Division of the Community Services Department offers more than 800 classes and programs to more than 16,000 participants annually. Changes in wages and participation rates directly affect the cost of providing these programs. In order to maintain a cost- recovery ratio that is reasonable, and within budgeted funds,flexibility is needed to make adjustments as needed. PURPOSE Establish a policy for the rate at which City recreation programs recover direct costs and to provide staff with authority to make adjustments to fees when program costs or revenues change. POLICY It is the policy of the City Council that: 1} For City of Redding residents,youth recreation class/program fees are set at a rate to target a ninety percent(90%} recovery of the direct costs associated with the program. 2) Youth recreation class/program fees for non-City residents will target one hundred percent (100%) recovery of the direct costs associated with the program. 3) Adult recreation class/program fees are set at a rate to target one hundred five percent (105%) recovery of the direct costs associated with the program. 4) A fifteen percent(15%) administrative fee shall be charged and included in the program cost to partially offset overhead costs for all programs, except free programs identified by this policy. 5) Free programs including those conducted at the Dr. Martin Luther King Jr. Center,the Junior Giants baseball program, open play at Fantasy Fountain, and fitness classes at the Senior Citizens Hall, are excluded. Direct costs are defined as materials, supplies, and part-time personnel costs required to conduct the specific class or program. Administration personnel, overhead costs, and facilities are not included. PROCEDURE As the class/program roster is established in the months prior to the schedule being published, staff will review attendance and costs of prior programs, evaluate current costs and set a class/program u��p� CITY OF REDDING, CALIFORNIA �`""°"`'�� COLTNCIL POLICY SUBJECT RESOLUTION PO�ICY EFFECTIVE PAGE NUMBER NUMBER DATE Recreation Classes and Program Fees 01-108 806 6-5-01 2 fee projected to recover the appropriate percentage based on activity. Quarterly, staff will review actual fee recovery experience to monitor compliance. u��p� CITY OF REDDING, CALIFORNIA �`""°"`'�� COLTNCIL POLICY SUBJECT RESOLUTION PO�ICY EFFECTIVE PAGE NUMBER NUMBER DATE Recreation Classes and Program Fees 01-108 806 6-5-01 1 BACKGROUND The City of Redding's Recreation Division caf th� �c�rrtra�t��°st�1 Ser�i��s �e�art�er�t offers more than �00 classes and programs to more than�, 16gQ00 participants annually. Changes in wages and participation rates directly affect the cost of providing these programs. In order to maintain a cost-recovery ratio that is reasonable, and within budgeted funds,flexibility is needed to make adjustments as needed. PURPOSE E�stablish a policy for the rate at which City recreation programs� �-��-recover�direct costs and to provide staff wit�authority to make adjustments to fees when program costs or revenues change. POLICY It is the policy of the City Council that: 1 Fc�r�st c�f fteddir� resid�r�ts ��outh recreation dass/program fees are set at a rate to target a ninety percent(90%) recovery of the direct costs associated with the program. ��Yc�uth r�cre�t�csn el�ss��s� r�rrt f�es fc�r r�c�rs-�ifi�r r�sider�ts�r'sll�ar �t c�r�� hundred ��rc�rat �1�C?°l�recc��rer�c�F t��dir��t ccasts�ssoe��d v,reth th� pro�rarr�. 3 Adult recreation class/program fees are set at a rate to target one hundred five percent (105%) recovery of the direct costs associated with the program. �°�,!��A fifte�r� �reerrt(1'�%a� adrraira�str�t6ar��shall ��ch��d �rad i�cl�ad�d ir�t�e �rca�r�r� cc�st �.,�s��il�;�.��v��P}=;��c� c�s�t��_��r a�E �rrc��;r�ms, �x��t Fr�e �r��r�rras ider�tiFi�d by this � olie . � m _� I ��Free programs including those conducted at the Dr, Martin Luther King Jr. Center,the Junior Giants baseball program, open play at Fantasy Fountain, and fitness classes at the Senior ICitizens Hall�are excluded. Direct costs are defined as materials, supplies, and part-time personnel costs required to conduct the specific class or program. Administration personnel, overhead costs, and facilities are not included. PROCEDURE As the class/program roster is established in the months prior to the schedule being published, staff will review attendance and costs of prior programs,evaluate current costs and set a class/program �;O�s�rs\barr�hart�\a��adata\res�rr�in�\i�rrr�2�rr�in�tets��\r�ddir� �it�lca�r�ddir��it�a��nie�rn2acar�Lv,r�rk� ttachm��ts\25310.dca�� u��p� CITY OF REDDING, CALIFORNIA �`""°"`'�� COLTNCIL POLICY SUBJECT RESOLUTION PO�ICY EFFECTIVE PAGE NUMBER NUMBER DATE Recreation Classes and Program Fees 01-108 806 6-5-01 2 fee projected to recover the appropriate percentage based on activity. Quarterly, staff will review actual fee recovery experience to monitor compliance. �o��s�rs\barr�hart�\a��datalrc��in�\i�rn2lmin�st�tr�q�r�ddir� �it�lea r�ddir��it�ac�nie�r�2ac�rr�\w�rl�`� ttachme�ts\25310.dca�� n� ; � �� " CITY OF REDDING � �� , � REPORT TO THE CITY COUNCIL MEETING DATE: December 3, 2019 FROM: Kim Niemer, Community ITElVI NO. 4.6(b) Services Director ***APPROVED BY*** btippin@cityofredding.org � � � �� isr��3ie xr, rt�'ar� ��at, �ct#vac;c�; . �r�ctc�r 1�I71?�119 kniemer@cityofredding.org SUBJECT: 4.6(b)--Approve revisions to City Council Policy 806: Recreation Classes and Fees Recommendation Approve revisions to City Council Policy: 806 — Recreation Classes and Program Fees that include increased cost recovery and exempting free programs from the policy. The Community Services Advisory Commission reviewed this proposal at its regular meeting on November 13, 2019 and recommends it for adoption. Fiscal Impact Should the City Council (Council} approve the revised Recreation Classes and Program Fees Policy, there will be no new expenses as the costs are currently being incurred. However, revenues to the General Fund may be less, estimated at $15,000 this fiscal year. Alte�native Action The Council could decline to approve the recommended revisions to City Council Policy 806 or provide staff with alternate direction. Backg�ound/Analysis In July 2001, the Council approved City Council Policy 806, establishing criteria for setting fees for recreation classes and programs. The current policy requires fees for classes and programs to be set at rates that recover a target percentage of the direct cost to provide the programs. The target for youth classes and programs is 85% and for adults, it is 100%. The policy defines direct costs as materials, supplies, and part-time personnel costs required to conduct the specific class or program. Administration personnel, facilities, and overhead costs are not included in the cost recovery. Since adopting the policy in 2001, the Recreation Division has successfully met or exceeded the cost recovery targets for both youth and adult fee-based programs. This report recommends ttivo Report to Redding City Council November 20,2029 Re: 4.6(b)--Approve Revision to City Council Policy 806 -Recreation Classes and Fees Page 2 major changes: an increase in the cost recovery percentage and exempting free programs from the policy. Fees and affordabilitv Affordable recreation programs are vitally important to establishing and maintaining the quality of life in a community for citizens who experience barriers that lirnit their opportunities. Community recreation programs provide a social outlet to seniors and provide a refuge of safety for at-risk youth. For generations, Redding Recreation has provided high qua]ity camps, sports leagues, and classes to Redding's youth, teens, adults, and seniors. In April of 2016, the State of California approved a $15 per hour minimum wage to be achieved with seven annual increases until arriving at $15 per hour in January 2022. As of January of 2020, minimum wages wi11 go to $13 per hour. In light of the increases in the minimum wage, an analysis of projected program expenses was conducted. The impact of the scheduled wage increases averages 8 percent annually. Since FYE 2015, direct labor costs for Recreation programs increased by $51,540 or approximately 17 percent, making it difficult to continue to meet policy targets without raising participant fees significantly and risking a decline in program participation. Raising participation fees by the same percentages would create a significant barrier to entry for many Redding residents. Reduced participation does not directly correlate to lower costs, as minimum staf�ng levels are required to run many programs and can lead to higher overall costs with a lower recovery rate. Multiple studies show that recreation programs positively impact communities in a variety of ways; from reduced youth crime rates, promotion of active and healthy lifestyles, and providing social connectivity in a safe environment for all age groups. Redding Recreation has built and earned a reputation for high quality, affordable programs over many decades. Cost recoverv percentage The policy calls for program fees to be set as a percentage of direct program costs. Direct program costs are defined specifically as the materials, supplies, and part-time personnel costs required to conduct the speci�c class or program. Administration personnel, facilities, and overhead costs are not included in the cost recovery. Staff is recommending a modest 5 percent increase in the cost recovery percentage for both youth and adults - from 85 to 90 percent for youth and 100 to 105 percent for adults. Conservative projections of anticipated direct costs and revenue for both youth and adult programs indicate that proposed policy targets can be met if the free programs described below are removed from the recovery calculations. In addition to the program fee, Recreation Divisian participants pay a Technology Surcharge Fee of 5 percent on a1] fee-based programs since its adoption in November 2010 which covers costs for technology-related expenses such as the registration software and various marketing and design expenses. Free programs Clearly, free programs don't generate revenue. However, the direct costs to provide free Report to Redding City Council November 20,2029 Re: 4.6(b)--Approve Revision to City Council Policy 806 -Recreation Classes and Fees Page 3 programs such as those at the Martin Luther King Jr. Center, the Junior Giants youth baseball, Fantasy Fountain spray park, and senior fitness classes at the Senior Citizens Hall have historically been included in the overall cost recovery calculations. • The Martin Luther King, Jr. Center has served the community since 1969. The Center serves disadvantaged and at-risk youth through an array of enrichment and academic programs. The annual cost is approximately $140,000. • Junior Giants provides a free, non-competitive and coed baseball program for youth ages 5- 13, offering equipment, uniforms, program incentives, and coaches training. Redding Recreation has offered this program since its inception in 1994, currently reaching over 450 youth annually. The San Francisco Giants Foundation provides a significant amount of in-kind materials to the program and requires that there be no fee to p]ay. The annual cost is approximately$12,000. • The exercise classes offered three times a week at the Senior Citizens Hall sees nearly 50 senior participants per class. The annual cost is approximately$4,000. • Fantasy Fountain is the community's free water spray park located in Enterprise Park. This open water attraction has multiple spray features and an erupting volcano, keeping kids active, entertained and cool during Redding's hot summer months. The cost is approximately$3,000. Council P�iority/City Manager Goals • Budget and Financial Management — "Achieve balanced and stable 10-year Financial Plans for all funds." • Government of the 21st Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." Attachmen�s City Council Policy 806-Fina1 City Council Policy 806-Redline �q°m CITY OF REDDING, CALIFORNIA c9<�Fow"`v COUNCIL POLICY SUBJECT RESOLUTION PO�ICY EFFECTIVE PAGE NUMBER NUMBER DATE Recreation Classes and Program Fees 01-108 806 6-5-01 1 BACKGROUND The City of Redding Recreation Division offers more than 350 classes and programs to more than 13,000 participants annually. Changes in wages and participation rates directly affect the cost of providing these programs. In order to maintain a cost-recovery ratio that is reasonable, and within budgeted funds,flexibility is needed to make adjustments as needed. PURPOSE To establish a policy for the rate at which City recreation programs should be recovering direct costs and to provide staff authority to make adjustments to fees when program costs or revenues change. POtiCY It is the policy of the City Council that: 1) Youth recreation class/program fees are set at a rate to target a ninety percent(90%) recovery of the direct costs associated with the program. 2) Adult recreation class/program fees are set at a rate to target one hundred five percent(105%) recovery of the direct costs associated with the program. 3) Free programs including, but not limited to,those conducted at the Martin Luther King Jr. Center,the lunior Giants baseball program,open play at Fantasy Fountain, and fitness classes at the Senior Citizens Hall are excluded. Direct costs are defined as materials, supplies, and part-time personnel costs required to conduct the specific class or program. Administration personnel,overhead costs, and facilities are not included. PROCEDURE As the class/program roster is established in the months prior to the schedule being published, staff will review attendance and costs of prior programs, evaluate current costs and set a class/program fee projected to recover the appropriate percentage based on activity. Quarterly, staff will review actual fee recovery experience to monitor compliance. C:\users\nboster\appdata\roami ng\iqm2\minutetraq\reddingcityca @reddingcityca.iqm2.com\work\att achments\11352.docx ,�� CITY OF REDDING, CALIFORNIA �`"�""� COUNCIL POLICY SUBJECT RESOLUTION POLICY EFFECTIVE PAGE NUMBER NUMBER DATE Recreation Classes and Program Fees 01-108 806 6-5-01 1 BACKGROUND The City of Redding Recreation Division offers more than 350 classes and programs to more than ��.�3,000 participants annually. Changes in wages and participation rates directly affect the cost of providing these programs. In order to maintain a cost-mmrecovery ratio that is reasonable,,and within budgeted funds,flexibility is needed to make adjustments as needed. !�°��.a��;�-<;��-,��;� ��-t=��-��_ � . _ _ _ , �: PURPOSE To establish a policy for the rate at which City recreation programs should be recovering direct costs and to provide staff authority to make adjustments to fees when program costs or revenues change. POLICY It is the policy of the City Council that: I 1) Youth recreation class/program fees be set at a rate to target a r7��o�-�'� . ' �percent (�t��%) recovery of the direct costs associated with the program. ( 2) Adult recreation dass/program fees be set at a rate to target one hundred fo�� percent(10.�m�%) recovery of the direct costs associated with the program. 3) F�r�� r�3 r��s i��l�e�� t rac;�t �6rr��t��c��A� �h�as��a�c�t�ct�ek �t:th�� :�rt�r� L�at�a�� I�i�� .�r. ��r�t�r� t��.��ar C�€�ra�� k��c�a�l� r� r�� a c� I� �t F��rat�� F��ar�l�i� ��c� Fit�tc�ss�I��s��t t�a� ��r��r�.i��s �I�II ��I�d�d. Direct costs are defined as materials, supplies, and part-time personnel costs required to conduct the � specific class or program. Administration personnel� overhead costs �nd f��lit��s are not included. PROCEDURE As the class/program roster is established in the months prior to the schedule being published, staff will review attendance and costs of prior programs, evaluate current costs and set a class/program fee projected to recover the appropriate percentage based on activity. C��rtr�rly, �t�Ff enril� r��ri��c��a�l �� r��c�v�re��ra��mm�ca rnc��e��r��rt��al��rw��,. S:\Recreation\Fee Policy\City Council Policy 806_Redline.docx ��n� ; � �� " CITY OF REDDING � �� , � REPORT TO THE CITY COUNCIL MEETING DATE: December 17, 2019 FROM: Kim Niemer, Community ITElVI NO. 4.6(a) Services Director ***APPROVED BY*** � �� „�� .r,��,x � � �.�_..__.._�...__..��... � isr�hii� xr, n�'�n r�at, �c�#v��;��; �rectcir l2,'�!?�ll�l v ��p��.(`i a�a� � 1?i�#'(�l, kniemer@cityofredding.org btippin@cityofredding.org SUBJECT: 4.6(a)--Adopt Resolution confirming revisions to City Council Policy 806 - Recreation Classes and Program Fees. Recommendation Adopt Resolution confirming revisions to City Council Policy No. 806—Recreation Classes and Program Fees as approved by the City Council at its meeting on December 3, 2019. Fiscal Impact Should the City Council (Council) adopt the resolution for the revised City Council Policy No. 806 Recreation Classes and Program Fees Policy, there will be no new expenses as the costs are currently incurred. Alternative Action The Council could decline to adopt the resolution modifying City Council Policy No. 806 or provide staff with alternate direction. Background/Analysis The City Council approved policy revisions to City Council Policy Na 806 Recreation Classes and Program Fees Policy on December 3, 2019. The revisions included a five percent increase in the cost recovery percentage for both youth and adult classes and programs to account for a portion of the indirect costs, and exempted free programs such as the Martin Luther King Jr. Center, the Junior Giants youth baseball program, Fantasy Fountain spray park, and senior fitness classes at the Senior Citizen Hall from the recovery calculations. To complete the action, a City Council resol�ution is required. The resolution is attached. Council PrioNity/City Manager Goals • Budget and Financial Management — "Achieve balaneed and stable 10-year Financial Plans for all funds." Report to Redding City Council December 12,2019 Re: 4.6(a)--Revisions to Council Policy 806 -Recreation Classes and Fees Page 2 • Government of the 21 st Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." Attachments Resolution City Council Policy 806-Final City Council Policy 806-Redline Previous Staff Report-December 3, 2019 (available online)