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LTC 257-2003 ... CITY OF MIAMI BEACH Office of the City Manager Letter to Commission No. ~~t - Q..{).<J3 m Subject: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez \~c. / City Manager 0 - 0 RECREATION FEE INCREASE Date: October 30, 2003 To: From: Attached please find a letter recently received by the Mayor and City Commission regarding increases in the cost of recreation programming. The letter specifically referenced the City's After Care Program. The After Care Program was very carefully analyzed as a specific offering during the recreation fee discussion. As indicated in the attached letter, the conclusions were that even at the increased cost that was approved by Commission and incorporated into the 2004 Fiscal Year Budget; the Program was well below the market for similar programs being offered in the region. The After School Program continues to offer a high quality experience for participants at a very reasonable fee. Also as indicated, we have advised the letter writer that she may avail herself of scholarship or fee reduction opportunities on an income eligible basis. JM ~.m F:~~~\RecreatiOnfeeltc.doC Attachment c: Robert C. Middaugh, Assistant City Manager Kevin Smith, Director of Parks & Recreation CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov Office of the City Manager Jorge M. Gonzalez Telephone 305 673-7010 Facsimile 305 673-7782 October 30,2003 Ms. Monica Plaza 1688 West Avenue, Apt. 903 Miami Beach, Florida 33139 Dear Ms. Plaza: Thank you for your recent letter regarding the increase in the recreation fees. The increase has already been approved by the City Commission and incorporated into the recently adopted 2004 fiscal year City Budget. The decision of the Mayor and City Commission to raise recreation fees was not one that was made lightly and only came in conjunction with a package of other fees that affected other service users and the business community. Overall the increase in user fees, which includes the recreation fees, was an integral and significant part of the budget adopted and key to helping the Mayor and City Commission balance the City's budget and offering of services to the community without an increase in property taxes. The process that lead to the recommendation and ultimate enactment of the fee increase was very thorough. The City's Administrative staff has been working with the independent auditing firm, KPMG, to do an assessment of the City's actual costs of providing services especially in our Recreation Division. Upon the conclusion of this cost allocation analysis, the Administrative staff went a step further and compared the service offerings and the fees charged by the City of Miami Beach to other communities within the region. What both levels of the analysis determined is that the City's fee structure for all recreational offerings was seriously under priced in relation to the market for the level of service that was offered. It is also important to note that recreation fees had not been increased for approximately a ten year period of time. One of the key components that the Mayor and City Commission insisted upon maintaining in our recreation fee structure is a policy that allows on an income illegible basis individuals to receive reductions or complete elimination of programmatic fee charges. The Mayor and City Commission were extremely concerned that individuals in our community not be priced out of our service offerings while still attempting to reach a balanced fiscal year budget. If you would like more detailed information about the fee reduction/scholarship opportunities available to residents, you may contact the Parks and Recreation Division directly and they will be pleased to provide you the scholarship details and to take your application if you wish to pursue one. . "' The analysis that was undertaken by the City went beyond simply dollars and cents and did also encompass services offered. In virtually all of our recreation offerings and particularly in the after school program which you referenced in your letter, it was clear that the City was offering a high quality service that even for the increased price represented a substantial bargain to the residents to the City of Miami Beach in comparison to fees charged in other parts of this region. Thank you again for your letter expressing your concern. We sincerely hope that you continue to avail yourself of the City's recreation services. Sincerely, \ ,,_Jl.......... L ..1 v' "y" , .':) ~~< ----... '- ~:; Jorge M. Gonzalez City Man er C: Robert C. Middaugh, Assistant City Manager Kevin Smith, Director of Parks and Recreation