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From Page 14 preciation ana respect for those facilities by all residents, whether they are users or not. They build in a sense of responsibility and ac- countability by the users to manage their own resources (for municipal resources do, in effect, "belong" to the residents). 4. Generally speaking, a fee system allows for identification of reasonable needs and re- quirements, whereas when facilities 'and/or programs are "free," (i.e. totally subsidized), unreasonable demands or expec- tations will almost inevitably arise. On the other hand, there are considerations that weigh against charging user fees, or at least very high user fees that might be intended to recover most of what is being expended: 1. If all costs were to be recovered through fees, a signifi- cant number of members of the community, those at the lower end of the income scale, would be unable to afford the expense in- volved and would, therefore, be effectively denied access to publicly-owned and operated recreation facilities and pro- grams. This consideration is par- ticularly important when the ser- vice being offered is at a very basic or introductory level, or when factors other than recrea- tional desirability are considered -- basic swimming lessons, for ex- ample, are considered by many jurisdictions to be so important from a safety point of view that they are offered at the lowest possible cost to participants; similarly, the expressed need for a community for youth programs might dictate a high level of com- munity funding; more sophisticated or "elite'"' pro- grams, however, could well be re- quired to be self-sufficient. 2. It should also be recognized that individuals or families who are financially able to pay high fees to private clubs, for special lessons, etc. These individuals are not, as a rule, interested in volunteering their services for the many necessary organizational and administrative tasks that ac- company these recreation programs. In the end, it is the responsibili- ty of those in charge of establishing public policy to weigh the various considerations, and to formulate a fee and cost- sharing policy that is fair to both the individual users and to the municipality. It is worth noting that, in recent years, the tendancy in most municipalities has been towards a somewhat higher level of user- pay fees and charges than was formerly the case. In particular, .- the Township may wish to con- sider charging out-ot-Township users a higher fee than that charged to residents, on the grounds that these people have inot contributed through their 'taxes, to the facility or program being used (unless some reciprocal arrangement is in place). Higher charges should also be considered for any profit-making venture that might use publicly- owned facilities. In this case, the Township may expect to recover not only all actual costs involved, but also a share of the profits from the venture, which will then be available to subsidize other recreational activities. E. CALCULATION OF COSTS In order to determine the full costs of operating and maintain- ing major Township recreation facilities, the Township's accoun- tants should establish a record- keeping system that will allow ross costs to be attributed to par- ticular activities. These costs can then be translated into unit costs appropriate for establishing ren- tal and users' fees. These costs will be available after the first year of operation of the facility; for the interim, we will suggest figures that can be used, based on costs in other multipurpose recreation centres in Ontario. This approach to establishing and paying for operating costs is us- ed successfully for many multipurpose recreation facilities in Ontario (e.g., City of Nepean; Carleton University). 1. Rental Fees Rents should be established on an hourly basis. This in turn means that all costs must be calculated on an hourly basis, but related only to those hours when the facility can normally be ex- pected to be rented. These hours can then be determined quite ac- --curately by examining statistics of a year's actual use (except for the first year of use in a new facility, when rates must be estimated). 2. Users' Fees For such activities as public swimming, or those requiring use of a particular building space, for example, a per-person fee can be calculated by examining a year's statistics to establish the average number of users per hour. This number is then divided into the total cost per hour that is required to operate and maintain the facili- ty; these are the indirect costs associated with programs and facilities. In addition, there are specific direct costs that can be attributed directly to a particular activity -- lifeguards, ticket sellers, extra control staff, administrative and supervisory costs, for example. F. A POLICY FOR SCUGOG Using the guidelines outlined above to calculate the costs of programs, and guided by the philosophical consideration presented, the Township can then set policies for the rate of cost recovery. In our view, the Township should aim for full recovery of all direct program costs and half of the indirect operating costs through user fees. : Note, however, that this is a consideration only of on-going operational and maintenance ° costs. It does not include recovery of the capital investment in any facility, nor do we feel it should. For the most part, the provision of recreational facilities is view- ed as a contribution by the public at large to the social fabric of the municipality, and to the "quality of life" of its residents. The portion of the indirect costs to be recovered should be based by policy on the nature of the pro- gram. As noted above, for exam- ple, very basic service programs may seek little recovery of in- direct costs from users, while sophisticated adult-oriented pro- grams (for which we predict there will be greater and greater demand as the adult portion of the population increases relative to that of young people) should be in- tended to recover virtually all in- direct costs. C DETERMINATION OF NET COSTS - METHODOLOGY We have not attempted to calculate revenues on the basis of individual programs, which is too speculative an approach for ac- curate long-range planning. Rather, the approach has been to set a general figure for the number of persons who can Scugog Recreation Centre fe reasonably be expected to use the facility for a full range of pro- grams (based on experience elsewhere) and to suggest a dollar figure over and above the amount that will be required to cover direct program costs (for instruc- tion, materials, etc.) that should be recovered, to pay for the in- direct costs (building control, heat, light, maintenance, etc.) that will be incurred to operate the facility. This approach allows maximum flexibility in terms of setting and adjusting individual program charges, by outlining the parameters that should be in place. We recommend that all direct costs of programming be calculated and recovered; in ad- dition, we recommend that a set amount, say $1.50 per visit, be recovered to cover indirect costs of operation, and to provide for reduction of the facilitiy's operating deficit. (Costs in other Located at 7 & 23 * Peat Loam * Top Soil (Sw Comer) * 4-Way 655-4542 Garden Mix | * Sand we 28 HWY. #7 * Gravel i * Limestone 3 $70 a ~ 2,6 BAKE SALE SATURDAY PORT PERRY STAR -- Tuesday, May 29, 1990 -- 19 centres vary from $1.00 to $2.00, 80 the $1.50 cost suggested here is about average; newer facilities tend to be more efficient, and therefore less expensive to operate). The amount can be ad- justed to keep pace with inflation and, once a full year's operating costs and participation figures are kriown, to reflect Scugog's situation more accurately. It should also be regarded as an average amount per user-visit. Some users will contribute more, others less, depending on the nature of the program. Youth asibility study groups, for example, are usually expected to contribute less to in- direct costs than are adults, and highly specialized programs (say scuba diving lessons, as opposed to learn-to-swim classes) should be charged at a higher rate of recovery. The length of a "visit" should be defined as four hours or less. In essence, this would mean that any full-day activity, say a sum- mer camp program, would be counted as two visits. A fitness class lasting three-quarters of an hour would constitute one visit. B.N.F. PERENNIAL NURSERY 40 Different Types of Perennials ... each 2.00 Now Also Available at Blackstock Country Hardware OPEN MONDAY to SUNDAY (during season) 1/4 Mile North of Nestleton Country Store on the North Nestleton Road NI YARD SALE. BAKE SALE CHARACTER THEME CAKES -- now available -- "Teenage Mutant Ninja Turtles" Select your favourite cartoon character or sports event from our cake book. 5 NN AR = me MEATING PLACE -- OPEN 7 DAYS-a WEEK -- In At Home of Len & Betty Somerville, Seagrave THURSDAY, FRIDAY, SATURDAY JUNE 14th, 15th, 16th Proceeds to ... Seagrave United Church 180 Queen St., Port Perry. 985-2818 WE NEED YOUR CONTRIBUTIONS If you have any items you wish to donate please contact Bill Barr 985-7239 or Fred Puckrin 985-2627. Proceeds for further church work. V