TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Mark Leyman, Parks and Recreation Director
Melissa McCollum, Senior Recreation Manager
Jesus Sandoval, Senior Recreation Supervisor
SUBJECT:Title
Afterschool REC Program Fee Update (Parks and Recreation Director Leyman).
(Estimated Time: 30 Min.)
DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council discuss and provide direction on the Afterschool REC Program fees for Fiscal Year (FY) 2022-2023 and FY 2023-2024.
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FISCAL IMPLICATIONS:
There is no fiscal implication associated with the recommended action at this time. Once the City Council directs staff on this matter, future funding appropriations and/or revenue adjustments may be required.
BACKGROUND:
The City’s Parks and Recreation Department established an afterschool program for children ages 6-12 in 1986 to provide a safe, positive, and fun environment during a period of time when many parents are not home from work. For the past 36 years, staff members have provided quality recreational and educational activities such as outdoor games, art activities, homework help, and skill building for thousands of local children.
Until FY 2008-2009, the City’s drop-in afterschool program was free for Manhattan Beach residents. In FY 2008-2009, staff started implementing program fees to help offset the cost of providing the afterschool program as well as expanded services including a new walking program to escort students from elementary schools to Live Oak Park and Manhattan Heights Park for the afterschool program.
The City’s Adopted Budget for FY 2022-2023 includes financial policies that the Parks and Recreation Department General Fund revenues equal at least 35 percent of total Department General Fund expenditures each year.
Staff regularly reviews actual and projected program expenditures and revenues for recreation programs. Due to increasing costs to provide the Afterschool REC Program, a desire to move to an all-inclusive billing model rather than charging separately for special programs, and reduced enrollment, Parks and Recreation staff announced a plan over the summer to raise the monthly fee from $389 per month to $549 per month to help meet department cost recovery targets. The monthly increase was based on increased part-time salaries, incorporating activities that were previously fee based, including Innovation Hour and Late Night REC, providing healthier snacks, and expanding specialty contract classes. The Adopted Annual Budget for FY 2022-2023 includes projected revenue of $326,000 for the Afterschool REC Program based on the fee of $549 per month for 66 participants.
Registration filled at this price prior to the start of the school year, but City Council and staff received community feedback from several families objecting to the change. Staff decided to revert to last year’s price of $389 per month to begin the school year, and distribute a survey to Afterschool REC Program parents and caregivers for input on the proposed fee change and other aspects of the program.
Eighty participants are currently enrolled in the Afterschool REC Program. If the monthly fee is not increased and remains at $389 per month, the adjusted projected revenue for the program is $280,000, resulting in a reduction of projected annual revenue of $45,920.
DISCUSSION:
Cost Comparison/Breakdown
Afterschool programs in the South Bay vary significantly in terms of hours and services provided as well as fees charged. A cost comparison of nearby programs is included below although it is worth noting that some municipalities paused afterschool programs or reduced the number of students served due to ongoing challenges of attracting and retaining enough staff to offer pre-pandemic service and program levels.
|
CITY/SCHOOL DISTRICT |
MONTHLY RESIDENT RATE |
|
MBUSD Extended Day Program |
$650 |
|
Manhattan Beach |
$389 |
|
Redondo Beach |
$200 |
|
Hermosa Beach |
$190 |
|
City of LA |
$100-$220 |
|
El Segundo |
No City Program |
|
Lawndale |
No City Program |
The City’s projected Profit and Loss for the Afterschool REC Program for FY 2022-2023 using a $389 per month rate for 80 participants is outlined below. The percentage for estimated recovery of direct costs is 88.4%
Monthly Revenue: $389 per month x 80 children = $31,120
Monthly Expenditures: $35,200
• Full-time staffing for two locations = $10,200
• Part-time staffing for two locations = $17,000
• Program equipment and supplies = $6,000
• Specialty workshops and programs = $2,000
Net: ($4,080) x 9 months = ($36,720)
Community Input
A survey was distributed to all Afterschool REC Program parents and caregivers in September 2022 to gather input on Afterschool REC Program services, activities, hours, staffing, and fees. Fifty-one respondents completed the online survey.
Survey highlights include:
• 56.86% prefer to keep the monthly fee the same ($389 per month)
• 17.6% prefer to lower the fee
• 7.84% prefer to increase the fee by 1-10% and 3.92% by 11-25% to help cover costs
• 3.92% prefer to reduce hours, services, and/or staffing to reduce overall expenses
• Respondents value the Afterschool REC Program’s outdoor activities, opportunities for physical activity, academic enrichment, holiday coverage, and walking program from schools to parks
• 86.28% rated their family’s overall experience with the Afterschool REC Program as very good or excellent and agree or strongly agree that the staff is enthusiastic and helpful
• 84.31% would recommend the Afterschool REC Program to a friend
Based on community feedback, staff recommends maintaining current programming and keeping the monthly resident rate of $389 per month for the 2022-2023 school year, resulting in a loss of $45,920 in budgeted revenue. Staff requests City Council to provide input regarding a possible rate increase for FY 2023-2024. Full direct cost recovery for the Afterschool REC Program serving 80 participants would require a rate increase of $51 per month for FY 2023-2024, equating to $440 per month.
PUBLIC OUTREACH:
A survey was distributed to all Afterschool REC Program parents and caregivers in September 2022. Fifty-one respondents completed the online survey during the two weeks it was open.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENT:
1. PowerPoint Presentation