Subsidy and Resource Allocation Study Background

In late 2019, the Hurst Parks, Recreation, and Senior Services Divisions began an extensive study to review its programs and services pricing and resource allocation. Focusing on community values and mission-based service, the Divisions created a Comprehensive Pricing Philosophy which will live on in the organization. It is flexible and responsive to changing conditions, allowing the Divisions to allocate resource wisely and provide valuable information for setting priorities for improvements to the system. The Subsidy and Resource Allocation report was presented to the Hurst City Council on December 8, 2020, and the following Comprehensive Pricing Policy was adopted.

Comprehensive Pricing Policy

As a publicly financed park system, the Hurst Parks, Recreation, and Senior Services Divisions provide a basic level of Parks, Recreation, and Senior Services for the public, funded by tax dollars. However, fees and charges and other methods to recover costs are considered a responsible and necessary means to supplement tax revenue and regulate park use where appropriate.

Critical to the success of service delivery is affordability, fairness, and equity. It is the intent of this policy to ensure that the approach in the use of tax dollars, as well as alternative forms of revenue, will result in these qualities.

In establishing fees and charges, the Parks, Recreation, and Senior Services Divisions will determine the costs of providing services based on an identified and consistently applied methodology including direct, indirect, and overhead costs. This calculated cost will be used to measure current and future levels of subsidy and to help establish appropriate subsidy goals to support services. The appropriate level of tax subsidy will be based on an assessment of who is benefiting from the service provided. If the benefit is to the community as a whole, it is appropriate to use taxpayer dollars to completely, or primarily fund the service. Examples of services that primarily provide the community benefits are hiking and biking trails, play areas, parks, and signature community events. The subsidy goals are used to establish and/or adjust fees to reach these goals.

As the benefit is increasingly offered to an individual or select group of individuals, it is appropriate to charge fees for the service at a decreasing level of subsidy and an increasing rate of cost recovery. Supervised or instructed programs, facilities, and equipment that visitors can use exclusively, as well as products and services that may be consumed, provide examples where fees are appropriate.

The Divisions shall also consider available resources, public need, public acceptance, and the community economic climate when establishing fees and charges. In cases where certain programs and facilities are highly specialized by activity and design, and appeal to a select user group, the Divisions shall additionally consider fees charged by alternative service providers or market rates. Fees and charges can be set to recover costs in excess of direct and indirect costs, where appropriate, as a method of subsidizing other services.

The Divisions may further subsidize services for persons with economic need or other targeted populations, as allowable, through tax-supported fee reductions, scholarships, grants, or other methods.