The URL can be used to link to this page

Home My WebLink AboutItem 05Memorandum To: Mayor, City Council & City Administrator From: Brett Altergott, Parks & Recreation Director Date: February 12, 2015 Subject: Lakeville Area Active Adult Fees City of Lakeville Parks & Recreation The Active Adults Advisory Committee has requested the City look into the possibility of reducing non-resident membership fees in an effort to increase non-resident membership to pre -2013 levels. Furthermore, the Advisory Committee requested the elimination of punch cards as a means for paying for program participation. Based upon the Advisory Committee's requests programming staff was directed to explore alternatives to the current membership fee structure and punch cards that did not result in a net reduction in revenue. The Recreation Supervisor and Recreation Program Coordinator's recommendations are outlined in the attached memorandum dated February 4, 2015. Recommendation: The Parks & Recreation Director recommends adjusting the Lakeville Area Active Adults membership fees and eliminating the punch cards in favor of a per program fee as outline in the memorandum dated February 4, 2015. City of Lakeville D~JfvA"n, f�'svjun Memo to: Brett Altergott, Parks & Recreation Director From: Patty Dexter, Recreation Supervisor Patty Ruedy, Recreation Program Coordinator Date: February 4, 2015 Subject: Lakeville Area Active Adults (LAAA) - Membership & Punch cards Staff is recommending an adjustment to LAAA membership fees and punch cards. Staff is proposing an increase in Lakeville resident annual membership fees and a decrease in non- resident fees: Lakeville Resident Single Lakeville Resident Couple Nan Lakeville Single Nan Lakeville Couple As you can see in the chart above there was a loss of 197 non -Lakeville members or 86% decrease from 2011-2012 to 2014-2015, a result of a 100% fee increase for these members. By decreasing non-resident fees, we are certain members that we lost due to the price increase will return. In addition, we are proposing to increase Lakeville resident fees slightly. Staff is proposing a modification of the punch card fee: In 2011/12 staff reviewed programs offered at the then Lakeville Senior Center that were of no cost to the participant (other than a membership fee). At that time, recommendation was made that these programs have a nominal fee associated with them. Each of these "free" programs would now cost .50 cents each time. This came in the form of a "Punch card". Punch cards were sold in 20 or 40 punches per card at a cost of $10 or $20 per card. Since the inception of punch card fees, we have seen approximately 3,000 less participants or a 27% decrease in member participation across all programs annually. Membership Actual YTD Proposed May 2011 -April 2012 May 2014 -April 2015 May 2015 -April 2016 Fee Ewallment Revenue Fee Enrol,ll l nt Revertue fee Enrollment Revenue $9 311 $2,799 $18 393 $7,074 $20 393 $7,860 $15 229 $3,435 $34 238 $8,092 $35 238 $8,330 $15 367 $5,505 $30 122 $3,660 $25 195 $4,875 $60 24 $1,440 $40 65 $2,600 907 $11739 1039 $20,266 1194 $23,665 As you can see in the chart above there was a loss of 197 non -Lakeville members or 86% decrease from 2011-2012 to 2014-2015, a result of a 100% fee increase for these members. By decreasing non-resident fees, we are certain members that we lost due to the price increase will return. In addition, we are proposing to increase Lakeville resident fees slightly. Staff is proposing a modification of the punch card fee: In 2011/12 staff reviewed programs offered at the then Lakeville Senior Center that were of no cost to the participant (other than a membership fee). At that time, recommendation was made that these programs have a nominal fee associated with them. Each of these "free" programs would now cost .50 cents each time. This came in the form of a "Punch card". Punch cards were sold in 20 or 40 punches per card at a cost of $10 or $20 per card. Since the inception of punch card fees, we have seen approximately 3,000 less participants or a 27% decrease in member participation across all programs annually. As noted in the chart below, there has been a decline in the purchase of these cards. They are also very time-consuming to manage. Punch card, $10 Punch card, $20 Punch Cards 2012 April - Dec 2013 Jan - Dec 2014 Jan - Dec Fee Enrollment Revenue $10 236 $2,360 $20 166 $3,320 402 $5,680 Fee Enrollment Revenue $10 340 $3,400 $20 123 $2,270 Fee Enrollment Revenue $10 240 $2,400 $20 85 $1,700 463 $5,670 325 $4,100 monthly average $631 $472 $341 Staff recommends that these "punch card" programs are applied a flat annual fee for participants. Fee would range from $5415, depending on program. This process will be easier to manage from the staff and volunteer level. With the adjustment in membership fees and modification to the punch card, staff is confident that LAAA will see an increase in non -Lakeville resident membership and an increase in program participation by members. With the implementation of both scenarios, a positive impact to the city budget will occur. 2015 Budget 2014 actual Membership $ 21,000 $ 20,450 Punchcards $ 5,700 $ 4,100 $ 26,700 $ 24,550 2015 estimate program fee replaces punchcard $ 3,505 (see attached for list of programs) proposed membership fee $ 23,665 $ 27,170 ustment $ 470 Programs Biking Health Angels Legal Advice Book Club Line Dancing Chess club Machine sewing group Classic Voices Chorus Mahjong Computer Class Motorcycle Creative Writing Oil painting Cribbage Party Bridge Dime Bingo Photography class Diners Club Pickleball Dominoes Ping Pong Duplicate Bridge Pinochle Euchre Poker Fitness Room Red Hat Chorus Friendly Folk Scrapbooking Golf (22 wks) men's Tatting Golf (22 wks) women's Texas Hold 'Em Hand & Foot Weight Loss / Walking Club Healthways Fitness Wii Bowling Knitting If we can be of further assistance, please contact Patty Dexter at pdexterglakevillemn.gov or 952-985-4610 or Patty Ruedy at pruedyolakevillemn.gov or 952-985-4622