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Recreation budget The town and village of
Potsdam share the cost of our joint recreation program. The recreation program is an important part of the quality of life in
Potsdam. Last year about 225 children participated in the Junior
hockey program and about 200 participated in the figure skating program.
About 273 children used our summer playground program. Over the years the recreation budget has grown significantly. The primary cost drivers are the utility costs in making ice and fringe benefits to employees. Also, there are substantial costs in equipment to make and maintain ice. In preparation for the planning next year's recreation budget, I have undertaken an analysis of budget trends since 2002. The complete analysis is available in spreadsheet form. A summary of the analysis is given below. In my mind, the primary issue is: How much of the program cost should be carried by users, and how much of the cost should be subsidized by taxpayers? The recreation program is a general benefit to our community. I believe it should receive some subsidy from all taxpayers. But what is the appropriate balance? As my analysis shows, in the 2007-2008 budget (the most recent year for which figures are available) the cost of the recreation program is:
Since 2002, the balance has shifted considerably toward the taxpayer subsidy. I believe this is out of balance. I am urging the town and village boards to increase user revenue generation and reduce the taxpayer subsidy.
Joint Potsdam Town/Village Recreation Program
budget—an overview Prepared by Steve
Yurgartis, Oct. 24, 2008 These
numbers are based on an analysis of the budgets from the fiscal years 2002
to 2008. The last year that data
on actual expenditures is available is the Village fiscal year 2007-2008
which ended in May 2008. Details
of the analysis are available in spreadsheet form, which also includes the
adopted budget for 2009 and the proposed budget for 2010. Overall In 2008 the recreation
program spent $483,480. Of that amount, there was $119,619 of revenue
generated. Net cost to the
town/village taxpayers was $363,861. Direct users of the recreation program
contributed 21% to the recreation program cost, with Town/Village taxpayers
contributing 75%, and the remaining 4% coming from other towns and state
aid. The proposed 2010 budget
would have a total recreation program expenditure of $505,075. From 2002 to 2008, the
recreation program cost to taxpayers (net recreation program cost) increased
by 67.3% From 2002 to 2008, the
average year-over-year (YOY) net recreation program cost increase in was
10.2%. In 2008 the net summer
program cost was about 1/3 of the total program cost, with the winter
program about 2/3 of the cost. Summer program In 2008 the summer
recreation program (beach and playground) spent $141,132.
From 2002 to 2008, the
summer recreation program expenditures increased by 17.1%. From 2002 to 2008, the
average YOY increase in the summer recreation program expenditures was 2.8%. Winter program In 2008 the winter
recreation program spent $342,348.
In 2008, ice rental
revenues were $97,089. From 2002 to 2008, the
winter recreation program expenditures increased by 83.1%. From 2002 to 2008, the
average YOY increase in the winter recreation program expenditures was
12.2%. From 2002 to 2008, the
average YOY increase in ice rental revenue was 4.5%. From 2002 to 2008, the
average YOY increase in the ice rental rate was 2.9%. The average fraction of
ice rental revenue-to-winter program expenses during the period 2002-2008
was 0.329. In 2008 the fraction
was 0.284. To return ice rental revenues to the historic average of 0.33
would require for 2010 an estimated increase of the current ice rate by 24%,
resulting in a prime rate of $105/hr and a junior hockey/figure skating rate
of $95/hr.
Complete recreation budget analysis spreadsheet link. Return to main page |
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