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Home My WebLink About02-25-2020 FPAC Agenda Packet Committee Members Arlene Mitchell David Radziej Council Liaison Steve Scott Arden Hills Financial Planning and Analysis Committee Agenda February 25, 2020 6:00 pm 1245 W. Highway 96 Arden Hills, MN 55112 651.792.7800 www.ci.arden-hills.mn.us City Vision A strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well-maintained infrastructure, fiscal soundnes s, and our long-standing tradition as a desirable City in which to live, work, and play. CALL TO ORDER 1. APPROVAL OF THE AGENDA 2. MINUTES A. October 29, 2018 3. NEW BUSINESS A. Recreation Programs Review 4. UNFINISHED BUSINESS A. 5. COMMITTEE COMMENTS 6. ADJOURNMENT A quorum of the City Council may be present at this meeting. MINUTES City of Arden Hills 1245 West Highway 96 ▪ Arden Hills Minnesota 55112 Phone 651.792.7800 ▪ Fax 651.634.5137 www.ci.arden -hills.mn.us FINANCIAL PLANNING & ANALYSIS COMMITTEE Monday, October 29, 2018 4:00 P.M. Council Chambers Conference Room, Arden Hills City Hall CALL MEETING TO ORDER AND ROLL CALL The meeting was called to order by David Radziej at 4:01 pm. MEMBERS PRESENT : David Radziej; Arlene Mitchell; Brenda Holden, Council Liaison MEMBERS NOT PRESENT: Katy Peters OTHERS PRESENT : Gayle Bauman, Finance Director Call to Order 1. APPROVAL OF THE AGENDA Motioned: Arlene Mitchell Seconded: David Radziej 2. APPROVAL OF THE MINUTES Motioned: David Radziej Seconded: Arlene Mitchell 3. NEW BUSINESS 4. UNFINISHED BUSINESS A. Continue Discussion on Health Insurance Renewal Options Finance Director Bauman distributed information regarding costs of each of the plans the committee was looking at. They were at the point of comparing our current plan to the PEIP plan. Arlene Mitchell was in favor of looking at continuing the current plan in place. David Radziej favored the HSA plan offered by PEIP. The committee discussed the savings to the City by going with the PEIP plan over the current plan and ultimately decided the PEIP plan was what they were going to recommend as long as employees had access to health care they need without it being too cumbersome. Discussion then turned to employee and employer contributions toward premiums and HSA. Consensus was made for Single - 100% of the premium would be paid and $125 per month would be contributed to an HSA by the employer; Family - $900 of the premium would be paid and $125 per month would be contributed to an HSA by the employer for a total contribution of $1,025. There was discussion about whether the City should offer an additional amount for new employees to assist with medical costs they may have right when they start work. A thought was to maybe do something once they had passed their six month probationary period. No decision was made on this item. For Dental they decided to leave the policy as is. For individuals that have the Single health plan, 100% of the employee portion of dental would be paid by the employer. For individuals that have the Family health plan, no amount of dental would be paid by the employer. 5. COMMITTEE COMMENTS 6. ADJOURNMENT MINUTES City of Arden Hills 1245 West Highway 96 ▪ Arden Hills Minnesota 55112 Phone 651.792.7800 ▪ Fax 651.634.5137 www.ci.arden -hills.mn.us Motioned: Arlene Mitchell at 5:56 p.m. Seconded: David Radziej __________________________________ __________________________________ David Radziej, Chair Gayle Bauman, Finance Director AGENDA ITEM – 3A MEMORANDUM DATE: February 25, 2020 TO: Financial Planning and Analysis Committee FROM: Gayle Bauman, Finance Director SUBJECT: Recreation Programs Review Committee Should Consider Discuss Recreation Program revenues and expenditures and review the percentage of costs being covered by revenues. Make a recommendation on the cost coverage ratio for the City Council to consider. Discussion Information presented to the City Council at the January 21, 2020 Work Session is attached. Council requested that FPAC look at all the factors related to Recreation Programs and develop a recommendation on what percentage of costs should be covered by user fees. Attachments A. Agenda item from 01/21/20 Work Session B. Discussion on Recreation revenues prepared by Sara Knoll C. Discussion on Recreation trends prepared by Sara Knoll $50$100$150$200$250$3002011 2012 2013 2014 2015 2016 2017 2018 2019ThousandsOverhead CostsDirect CostsTOTAL REVENUESTOTAL COSTS Recreation Revenues Increased revenue is certainly a goal each year, but the department will need to balance the ability to increase revenue while maintaining the public’s trust and commitment to the services we provide. Determining cost recovery goals, ensuring affordable access, utilizing existing inventory, creating partnerships with other communities are all ways we can monitor the revenues/expenditures in the years to come. Why the revenue changes from year to year:  Demographics in the City and surrounding area. We have noticed an increase in the cities preschool programs and classes offered.  Offering different class options each season. Enrollment will vary from class to class.  Inadequate space/location  Having maximums on programs for safety  Schools will no longer allow us to advertise using flyers in the schools  New partnerships/contracts  Cost increases – space rentals, staff costs Ways to Increase Revenue:  Increase class fees  Increasing fees in the top five revenue producing programs  Cut expenditures  Staff/participant ratios  Parent and Me classes – Keeping the staff numbers down  Promoting classes – getting the word out (Newsletter, Parks and Recreation Guide, Facebook)  Late fee added to youth leagues and summer playground program (currently using)  Voucher system instead of refunds (currently using)  Volunteers – having volunteers help at some of the events  Sponsorships and donations  The City of Arden Hills offers a coaches discount for all of the youth leagues. This year we limited the number of coaches allowed per team.  The City needs to remain competitive with the fees that are set. Surrounding communities offer the same programs/leagues.  Scholarships for programs. The City of Arden Hills receives scholarship requests for programs. The Arden Hills Foundation has been providing scholarship money for families in need the last few years ($500). The Parks and Recreation Department has a very good reputation in our city. The programs that we offer are high quality and affordable. The City of Arden Hills offers a wide variety of programs that appeal to all ages in the community. I believe in our programs and the impact that they make on residents in Arden Hills and surrounding communities. Increasing registration fees for programs to boost revenue could negatively impact enrollment in the future. Parks and Recreation Programming Trends The decline in outdoor recreation participation is an alarming trend. Declines in participation reduce the number of Minnesotans who receive the benefits of outdoor recreation that can be attained from parks, trails and programming. Currently the state of Minnesota is seeing a decline in participation within the adult softball program. This is something staff has been monitoring for the last few years. The City of Arden Hills has partnered with surrounding cities to still offer the opportunity for adults to play softball in Arden Hills. Some cities have decided to cut the adult softball programs altogether or offer an alternative activity. Staff has noticed that if we cancel a league for a season, it is very challenging to get the league up and running again. Last year the City of Arden Hills had 6 adult softball teams registered. Different audiences seek different experiences when they sign up for recreation programs. In order to meet the needs of the community, the Parks and Recreation Department must seek new ways to reach those not currently using/taking programs, while at the same time ensuring that we are still meeting the needs of our current users. The Arden Hills Parks and Recreation Department has seen an increase in the preschool programs that are currently being offered. Families with young children look for ways to introduce their children to the outdoors and different programs in the community. The preschool programs that are offered through Parks and Recreation require more staff, capping the number of participants that are allowed in each program. The department follows the current trends, offering new and exciting classes to the youth in Arden Hills. Staff evaluates each class that is offered each season. As adults age their recreation needs and interests change. We have started offering more active adult activities to attract the 55+ community to participate in programs in Arden Hills. We have created a partnership with the City of Shoreview to offer day trips, history seminars and educational classes for the aging adult population. Providing high-quality programs and experiences to residents in Arden Hills and surrounding communities is the number one priority for the department. Sara Knoll Recreation Coordinator