Report to / Rapport au :
Health, Recreation and Social Services
Committee /
Comité de la
santé, des loisirs et des services sociaux
and Council / et
au Conseil
14 April 2002 /
le 14 avril 2002
People Services
Department/Services aux citoyens
Contact/Personne-ressource:
Jocelyne St Jean Director of Community Services Branch/ Directrice des services
communautaires
724-4122 ext.
24365, Jocelyne.StJean@city.ottawa.on.ca
Ref No:
ACS2002-PEO-COM-0011 |
SUBJECT: RECREATION AND
CULTURE PRICING POLICY
OBJET : POLITIQUE D’ÉTABLISSEMENT DES TARIFS
DES LOISIRS ET DE LA CULTURE
REPORT RECOMMENDATIONS
That the Health, Recreation and Social
Services Committee recommend Council approve:
·
Pricing Policy Statement;
·
Pricing Policy Principles for Developing Procedures;
·
Values and Priorities for Pricing; and
·
Costing Process to Determine Price; and
·
That in the short-term the General Manager of People
Services review and adjust existing Recreation and Culture fees to reflect
harmonized prices for the service categories of admissions and memberships,
programs, rentals and other, as detailed in Annex A; and
·
That in the long-term, as part of the annual budget process
the General Manager of People Services review and recommend to Council
amendment of established fees to ensure ongoing adherence to this policy and to
ensure achievement of annual budget revenue guidelines as set by Council.
RECOMMANDATIONS DU
RAPPORT
Que le Comité de la santé, des
loisirs et des services sociaux recommande au Conseil d’approuver :
·
Énoncé de la politique d’établissement des tarifs;
·
Principes contenus dans la politique pour ce qui concerne l’élaboration des
procédures;
·
Valeurs et priorités aux fins de l’établissement des tarifs;
·
Processus d’établissement des coûts en vue de la détermination des prix.
·
Que, à court terme, le directeur général des Services aux citoyens
examine et révise les droits d’utilisation des services de loisirs et de
culture de manière qu’ils tiennent compte de l’harmonisation des prix pour les
différentes catégories de services (admission et adhésion, programme, location
et autres) décrites à l’annexe A;
·
Que, à plus long terme et dans le cadre de l’établissement du budget
annuel, le directeur général des Services aux citoyens examine et recommande au
Conseil la modification des tarifs établis afin d’assurer l’application
continue de la présente politique et le respect des lignes directrices sur les
recettes budgétaires annuelles fixées par le Conseil.
In August 2001, Council approved a recreation and culture service mandate for the City of Ottawa. The goals of the service mandate support community access, participation and overall health and well being through recreation and culture programs. Implementation of the service mandate requires a series of operational policies to support program delivery. The fee assistance policy was the first of these policies approved by Council in December 2001.
This report recommends a recreation and culture pricing policy that reflects the service mandate’s focus on:
· Ensuring an optimal level of access to introductory/general participation programs and services in all areas of the City and for all age groups;
· Providing a continuum of pricing options for access to programs that respond to varying community needs and encourage ongoing participation;
· Reducing or eliminating barriers to participation in recreation and cultural activities; and
·
Maintaining the existing revenue base derived from
recreation and culture fees.
It also provides examples of the procedures and processes required to fully implement the policy, a proposed time line for processes to be implemented, and the rationale for the various procedures that have been developed.
Prior to amalgamation, local municipalities provided recreation and culture programs and services, and attached fees to some of these services, within the mandates and policy frameworks that had been approved by their respective municipal Councils. Most municipalities attempted to recover all or a portion of the cost of offering programs from participants. Accordingly, the fees from these former Cities varied greatly depending on the different cost structures, philosophies and revenue expectations applied to their pricing processes. For the most part, the fees from these legacy municipalities are still in place today. This report is the first step towards providing the new City with a harmonized pricing policy that reflects the Recreation and Culture Programs and Services Mandate approved by City Council.
Currently, these fees generate $29,068,000 towards the
$64,832,000 operational cost of delivering recreation, cultural and park
services. This represents a 44%
recovery of costs through fees, with the remaining 56% ($35,764,000) coming
from the tax base to support facility maintenance and operations ($24,161,000), parks operations and
maintenance costs ($9,321,000) and grants and Purchase of Service agreements
($3,138,000).
If Centre of Expertise
overhead costs of 13% are added to operational costs the total costs increase
to $73,152,000. The percentage of
tax-based support increases to 60% ($44,084,000) and although revenues remain
constant at $29,068,000, the percent contribution of revenues decreases to 40%.
Finally if capital
costs, including life cycle replacement costs are included in this calculation,
the base dollar amount increases to $119,152,000. With the inclusion of capital costs, the total percentage of tax-based
support increases to 67% ($80,084,000).
Total revenues increase to $39,068,000 due to development charges,
however, the overall percentage of non-tax revenues decreases to 33%.
|
Tax Support |
Non-Tax Revenues* |
||
Budget Item |
Dollar Cost |
Percent Cost |
Dollar Cost |
Percent Cost |
Facility and Park Operations |
$35,764,000 |
56% |
$29,068,000 |
44% |
Operational Overhead |
$44,084,000 |
60% |
$29,068,000 |
40% |
Capital and Lifecycle Replacement |
$80,084,000 |
67% |
$39,068,000 |
33% |
* Non-tax revenues include: user fees,
sponsorships, grants, vending, concessions, and leases
In addition, given that a significant number of buildings and developed properties within the City support recreation and culture services, the demand for capital funds to support life cycle renewal is high. Furthermore, the growing age of this building and property portfolio is accelerating the demand for replacement budgets. For 2002, 40% of the available capital life cycle funds managed by Real Property Asset Management is designated for parks and recreation facilities. Although the assigned life cycle funds do not reflect industry standards, the amount of annual investment approaches $6.6 million. The Long Range Financial Plan is concerned with identifying a sustainable funding level for life cycle renewal work and is examining the viability of directing revenues acquired through recreation and culture fees toward a life cycle replacement reserve.
The work completed to date has examined the ratio of tax support to non-tax revenues used by various municipalities in the delivery of park, recreation and culture services. This research indicates that there is no best practice in Ontario nor in Canada. Rates are often established based on what is known to work in a local municipality, or based on historical rates. For this reason suggested rates for this Pricing Policy will be based upon objectives identified in the Long Range Financial Plan to ensure that the ratio of tax support to non-tax revenue established for City of Ottawa recreation and culture programs will meet long range financial goals and maintain the viability of this important service and benefit to the community.
This report has been developed in conjunction with the Community Services Branch Allocation Policy report to ensure that the manner in which groups are classified and priorities are established for access to City facilities is complimentary to the direction taken on attaching a fee to the use of these facilities.
DISCUSSION
1.
The
City will give priority for tax-based support of recreation and culture
services to those with:
a.
Broad
community benefits beyond the benefits to the individuals or groups
participating in the services.
b.
Relevance
to, and direct impact on, the achievement of Corporate and Departmental
objectives and priorities as identified in cyclical strategic and operational
planning processes.
2.
User
fees will be the primary source of funding for services that mainly meet the
needs of individuals or small groups, and that have limited benefits or
positive impacts on the broader community.
3.
The
categorization of services into introductory/general participatory,
intermediate and advanced will form the basis for assigning the relative
community value and benefit of programs for pricing purposes.
4.
Priority
for ensuring accessibility and affordability through pricing will be directed
at introductory level programs.
Scope of the Policy
This policy applies to fees for recreation programs and services operated directly by the City of Ottawa’s Community Services Branch at swimming pools, community centres, museums, arenas, sports fields, cultural facilities, etc. These include registration fees for a wide variety of instructional programs, admission fees to City facilities and activities, rental fees for short-term use of facilities and fields, membership fees, product sales and administration fees.
The policy does not apply to recreation and culture related services operated by other City Branches such as, Lansdowne Park, the baseball stadium, and Pineview Golf Course.
Pricing changes must balance participant beliefs about program benefits and the ability to financially accommodate these changes. Timing of price changes must correspond with logical cycles related to the activity. For example, changes to ice rental fees should be decided and communicated in advance of league registration periods so that community associations have an opportunity to modify registration fees to recover costs for ice time. Clear, timely communication with community organizations and participants about price changes, and adequate phase-in periods (at least one season) will help maintain the benefits and affordability balance.
iii) Harmonization. Many of the services that People Services offers across the City are relatively similar in terms of content and outcomes, but have different user fees related to legacy municipality. For example, participants in the AquaQuest 6 learn to swim program receive similar units of instruction that teach an identical level of aquatic skill, but the program is priced differently dependant upon where in the City it is offered. The pricing policy will ensure that equivalent program offerings receive equivalent prices.
iv) Choice. Clients want choice, and People Services is
committed to offering a menu of services that meets community needs. Where legitimate service level or program
content differences exist to provide selection these differences will be
respected and maintained.
v) Targeted services. People Services will offer a range of programming fees from free public swimming in low-income communities to high cost private instruction for those who can and wish to pay higher fees.
This grouping will facilitate the
review of similar categories and related services in a coordinated manner, over
parallel timeframes and by the same work groups. The implementation schedule for the
pricing guidelines will begin in September of 2002 with public swimming and
public skating admission and membership fees.
Other program areas will be phased-in starting in 2003 depending upon
each area’s programming cycle. An
implementation plan by program area is presented in Annex A. A detailed example of the application of the
pricing policy to the price harmonization process for public swimming is
provided in Annex B.
As part of the on-going
implementation plan the Community Services Branch will undertake an annual
stakeholder review process. Stakeholder
user groups will be invited by the Branch to participate in this process by
providing their input on their experiences during the season. The Branch will include staff from
Transportation Utilities and Public Works and Real Property Asset Management
who are responsible for maintenance of City facilities and parks. The information received from the community
will be used in the evaluation of the all Branch policies, processes and
programs. Branch staff will make
modifications as required to address issues identified throughout the annual
review process.
RURAL
IMPLICATIONS
The
pricing policy may have an impact on rural communities where City-wide
services, planned developed and delivered by City staff are expanded to rural
communities as part of the process to standardize service levels across the
City. Continued consultation with rural
communities will assist in the identification of the types of recreation and
culture programs and services that rural residents desire, preferred service
delivery methods (staff or volunteer) and preferred methods and points of
access for these services.
The
unique needs of rural communities and the high level of volunteer commitment
and contribution in these communities are recognized and valued by the
City. The pricing policy was
developed with the intention of continuing the strong partnership with
volunteers who have experience with and knowledge of their local communities.
The Community Services Branch has undertaken public consultation for the development of a recreation and culture pricing policy since the winter of 2002. A consultant was contracted to identify key elements and principles for the development of a pricing policy framework. The Branch conducted four consultations sessions, representing a broad range of recreation and culture services, two with community stakeholders and two with front-line recreation and culture staff. These sessions outlined the key policy directions being recommended by People Services and provided an opportunity to work with and apply the concepts to three different program areas. Information gathered through the community and staff consultations was used to refine the essential elements and principles for the pricing policy.
In April 2002, key elements and principles of the draft pricing policy were presented to the Parks and Recreation Advisory Committee. People Services received the Committee’s agreement that the recommended principles provide an equitable and consistent approach to pricing.
DISPOSITION
The
General Manager of People Services will implement the pricing policy according
to the implementation schedule outlined in Annex A.
FINANCIAL
IMPLICATIONS
The net
tax-based cost of providing recreation and cultural services will not be
impacted by the implementation of this policy.
Price adjustments brought about by the application of this policy will
be carried out within the net budget allocation for recreation and culture
services. Increases to the City’s input
costs (labour, materials, etc.) for services will be recovered through the
application of this policy to determine periodic price adjustments, alternate
sources of funding (sponsorships, grants), or through a report to Council with
a rationale for additional tax-based support.
ATTACHMENTS
Annex A
– Implementation Plan
Annex B
– General Admission and Membership Rates for Swimming
Annex A – Implementation Plan
|
Activity |
|||
Service Category
|
Procedure Development |
Staff Training |
Communication Strategy |
Harmonized Price Launch |
Admission and
Memberships |
||||
Public Swimming Admission |
July – August 2002 |
July – August 2002 |
July – August 2002 |
September 2002 |
Public Swimming Memberships |
July – August 2002 |
July – August 2002 |
July – August 2002 |
September 2002 |
Public Skating Admission |
July – August 2002 |
July – August 2002 |
July – August 2002 |
September 2002 |
Public Skating Memberships |
July – August 2002 |
July – August 2002 |
July – August 2002 |
September 2002 |
Fitness Memberships |
July – August 2002 |
July – August 2002 |
July – August 2002 |
September 2002 |
Drop-in Program |
July – August 2002 |
July – August 2002 |
July – August 2002 |
September 2002 |
Programs |
||||
Introductory/ General/ Participatory |
July – December 2002 |
July – December 2002 |
Seasonally from 2003 to early 2004 |
Seasonally from 2003 to early 2004 |
Intermediate |
July – December 2002 |
July – December 2002 |
Seasonally from 2003 to early 2004 |
Seasonally from 2003 to early 2004 |
Advanced |
July – December 2002 |
July – December 2002 |
Seasonally from 2003 to early 2004 |
Seasonally from 2003 to early 2004 |
Rentals |
||||
Community Halls and Gymnasiums |
July – October 2002 |
July – October 2002 |
June – August 2003 |
September 2003 |
Arenas (Ice and Slab) |
July – September 2002 |
July – September 2002 |
January – February 2003 |
February 2003 |
Ball Diamonds/ Sportsfields |
September – November 2002 |
September – November 2002 |
July – October 2003 |
November 2003 |
Indoor Aquatic Facilities |
July – October 2002 |
July – October 2002 |
June – August 2003 |
September 2003 |
Park Permits |
September – October 2002 |
September – October 2002 |
January – February 2003 |
March 2003 |
Arts and Heritage Facilities |
July – October 2002 |
July – October 2002 |
June – August 2003 |
September 2003 |
Other |
||||
Administration |
July – September 2002 |
July – September 2002 |
December 2002 |
January 2003 |
Sales |
July – September 2002 |
July – September 2002 |
December 2002 |
January 2003 |
Recoveries |
July – September 2002 |
July – September 2002 |
December 2002 |
January 2003 |
Annex B – General Admission and Membership Rates for Swimming
The City of Ottawa directly
operates 15 indoor swimming pools (plus Plant Bath which is expected to re-open
in 2003, 9 outdoor pools, 57 wading pools and 3 beaches. The general admission fees for swimming
pools vary (ranging from $0 to $6.60), the client classifications are
inconsistent, and the membership prices and packages differ.
The process of establishing new fees involves an examination of the facilities and amenities provided, a review of participation rates, a determination of user group classifications, establishment of revenue expectations based on past actuals and application of the pricing policy principles and values. The result is then a proposed fee schedule which provides value and choice, is sensitive to market rates, addresses accessibility, allows the continuation of promotional and “special” reduced or free swimming opportunities, and provides reduced rates to regular users through membership options. Revised fee schedules will ensure that the revenue generated through general admissions and membership sales will be maintained ($1.86 million). An essential component of the process is review of rates charged by purchase of service providers and subsequent adjustments to purchase of service agreements as required.
Swimming
Swimming pools have been
categorized into three groups, which recognize the difference in
amenities: Wave Pools, Leisure Pools
and Standard Pools. The fees for
admission to swimming are further divided into the following categories:
Tot: under 2 years of age
Child: 3 to 12 years
Youth: 13 to 18 years
Adult: 19 years and over
Family: a minimum of one adult and their child(ren)
Group: 10 or more individuals
Student: under 19 years of age or a full time student
Children under the age of 2 years and users of wading pools and beaches will continue to be admitted free. The application of the pricing policy also ensures that free summer swimming for children and youth will continue to be offered in each district based on the socio-economic indicators of the catchment area for each pool. Based on this proposed example, it is estimated that approximately 48,000 children and youth will swim free during the summer at the targeted pools, a slight increase from the present number of 45,000. This proposed fee schedule also ensures maintenance of current participation rates of 500,000 user-visits annually (pay-as-you-go) and of membership holders.
SWIMMING GENERAL ADMISSIONS |
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Existing
Fees (incl. GST) |
Wave |
Leisure |
Standard |
Outdoor |
|||||||||
Kanata |
Splash |
Kanata without waves |
Sportsplex & WBSC |
Goulbourn |
Splash without waves |
Clifford Bowey |
7 Ottawa Pools |
Sawmill & ORC |
3 Kanata |
1 Gloucester |
1 Vanier |
4 Nepean |
|
Child, Youth & Student |
$4.85 |
$4.10 |
$3.50 |
$2.10 |
$2.10 |
$2.00 |
$1.50 |
$1.20 |
$2.00 |
$2.30 |
$2.00 |
$0.00 |
$1.80 |
Senior |
$5.20 |
|
|
$1.85 |
$1.50 |
$2.00 |
|
||||||
Adult |
$6.60 |
$5.90 |
$4.80 |
$3.70 |
$3.70 |
$3.00 |
$2.35 |
$3.45 |
$2.70 |
||||
Family |
$4.85 |
$4.20 |
$3.50 |
$10.00 |
$10.00 |
$9.20 |
$7.30 |
$9.10 |
|
$8.10 |
|||
Group |
$3.50 |
$3.80 |
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Slide |
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|
$0.75 |
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Whirl/Steam |
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|
$4.80 |
$2.35 |
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Suggested
New Fees (incl. GST) |
Wave |
Leisure |
Standard & Outdoor |
||||||||||
Kanata |
Splash |
Kanata without waves |
Sportsplex & WBSC |
Goulbourn |
Splash without waves |
Clifford Bowey |
7 Ottawa Pools |
Sawmill & ORC |
3 Kanata |
1 Gloucester |
4 Nepean |
Vanier |
|
Child, Youth & Student |
$4.50 |
$2.25 |
$2.00 |
||||||||||
Adult |
$6.50 |
$4.00 |
$3.50 |
||||||||||
Family |
$4.50 |
$2.25 |
$2.00 |
||||||||||
Group |
$4.00 |
$2.00 |
$1.80 |
||||||||||
Slide |
incl. |
N/A |
$0.75 |
N/A |
N/A |
||||||||
Whirl/Steam |
incl. |
$3.00 |
N/A |
Assumptions: · The fees have been rounded · Children under 2 will be admitted free
· Free summer swimming for children and youth will be
offered in each district based on the socio-economic indicators
Central: Clifford Bowey, St. Laurent, Canterbury, Lowertown and
Plant East:
Vanier
South: Crestview West:
Pinecrest
SWIMMING MEMBERSHIPS
Suggested New Fees
All Pools
(except |
|
1 year |
6 months |
3 months |
1 month |
wave swims) |
|
||||
Adults |
|
$235 |
$130 |
$70 |
$35 |
Children, Youth
& |
|
$140 |
$75 |
$40 |
$20 |
Students |
|
||||
Family |
|
$485 |
$285 |
$165 |
$88 |
Wave Swim
tickets: 10 for the price of 9 |
|||
Adult |
|
|
$58.50 |
Child/Youth/Student |
$40.50 |
Assumptions:
·
Memberships will
be valid at all pools except wave swims
·
Wave swim
tickets will be available (10 for the price of 9)
·
Adults who
typically swim 3 times a week will gain a 17% discount by purchasing a 1 month
membership, 45% with a 3 month membership and 50% with an annual membership
·
The 3 month
membership is priced the same as two 1 month memberships to support summer use
·
A child who
attends 5 swim sessions per week during the summer receives a 60% discount on
the general admission fee
·
The membership
rates are built from the Standard and Outdoor General Admission rates