DEPARTMENT OF RECREATION AND PARKS: TIERED FEE STRUCTURE

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DEPARTMENT OF RECREATION AND PARKS: TIERED FEE STRUCTURE

Problem Identification:
Failure to differentiate between city and non-city residents in the assessment of fees for use of the Department’s facilities and services represents a missed opportunity to increase existing revenues.

Recommended Action:
Explore the feasibility of a tiered fee structure for city and non-city residents.

Classification:
Revenue Enhancement and Service Improvement

Functional/Operational Area:
All Departmental Operations

Estimated Annual Impact:
$750,000

Estimated Implementation Costs:
None

Barriers to Implementation:
The Department’s staff might have limited ability to enforce a tiered fee structure.

Projected Implementation:

180 days

Next Steps:
Design a tiered fee structure. Focus initial efforts in areas with the most potential to increase revenue streams, such as the City’s municipal golf courses and the Department’s special facilities.

Analysis:
The Department’s facilities and services are utilized by both city and non-city residents. Charging non-city residents a premium to utilize Department facilities is a possible means to generate additional operational support for the Department’s programs and initiatives.

As an example, approximately 60,000 rounds of golf are played on each of the City’s golf courses every year. There are five courses maintained by the Baltimore Municipal Golf Corporation. Conservatively, half of the rounds are played by individuals from outside the city. Were these individuals charged a $10 premium and fee enforcement efforts were 50 percent successful, a $750,000 annual increase in revenues could be realized.

Additional fees can be collected for surcharges on driving range use and other services offered at golf courses. Other immediate opportunities for a tiered fee structure include the Department’s indoor soccer and basketball leagues.