CITY COUNCIL AGENDA PACKET - Laserfiche WebLink

Page 2 of 6 have been refined to improve operational efficiency and reduce costs where possible. In Fall 2024, Library and Recreation staff reviewed the existing cost recovery targets alongside actual results from Fiscal Year (FY) 2023/24 to assess whether the existing cost recovery goals were being met. Staff found that most programs were within their cost recovery target overall. In cases where a program or class did not meet cost recovery goals, staff reviewed the offerings to identify opportunities for cost savings or revenue growth. Staff will re-evaluate these programs at the conclusion of FY 2024/25. In some instances, staff concluded that cost recovery was not feasible and discontinued the program (Attachment 2). DISCUSSION Section V. Police Department Subsection B Special Permits To codify and honor the positive impact many special events have on the community, staff is proposing a percentage discount (or GF subsidy) on the special event fee for certain types of organizations, as described below. Category/Description % Discount to Actual Cost/General Fund Subsidy PUSD Co-Sponsored Groups 40% Non-Profit Organizations 30% Pleasanton Residents (Private Use) 20% Non-Residents (Private Use) Businesses 0% Section VIII. Recreation Cost Recovery Model Update Given the City’s current financial challenges, it is essential that the Recreation Division of the Library and Recreation Department adjust its cost recovery targets. These adjustments will help ensure the continued delivery of high-quality programs and services despite limited resources. By updating the recreation categories and more carefully balancing service fees with GF subsidies, the department can continue to serve the community in a responsible and equitable manner. As part of ongoing efforts to ensure fiscal sustainability and high-quality service delivery, staff re-evaluated the existing cost recovery model to account for new operational realities. Changes to program-related costs, including electricity usage and facility maintenance, along with a growing need to identify new revenue streams to help keep programs available to the community, necessitate updates to the MFS. The proposed MFS updates balance GF subsidies for programs and services with significant community impact, with higher fees for programs that bring more benefit to the individual participant rather than the community. The proposed updates to the MFS (Attachment 3) maintain the foundational principles of equity and community benefit while incorporating greater flexibility and clarity around how services are funded and supported. This updated framework will continue to serve as a key Page 139 of 864