Improving your Cost Recovery CPRS Fall Forum 1

Today How to get started with determining appropriate levels of cost recovery How to make improvements if needed 2

Its all about the Policy Policy defines community values Policy establishes target levels Policies will vary across communities 3

Menlo Parks policy Three levels with criteria for each High cost recovery (70-100%) Low cost recovery (0-30%) Everything else is Mid-level (31- 69%) 4

High cost recovery programs Benefit the individual more than the community Generally have competition in the private sector Are readily available Can recover a fee easily 5

Low cost recovery programs Benefit the community, overall Generally have NO competition in the private sector May align with a Council or community goal Cannot recover a fee cost effectively 6

Cost analysis What data have you got? Can you keep track on your own if Finance can’t help? Do you know your overhead costs? 7

Know what you’re shooting for Direct costs? Budgeted costs? Indirect costs? Then set your target and time frame –Eat the elephant… –Know what’s realistic 8

Planning questions What are our priorities for improvements? What infrastructure do we need to develop? Are we ready to justify changes to our community? If so, how will we do it? 9

Menlo Park We got EVERYONE involved Lots of staff training Improved measuring and monitoring Held staff accountable (gently) 10

Sustainable services matrix Hard decisions about service mix and business models Helped determine where fee increases were appropriate 11

What really worked for us Changed our business model where needed Set achievable targets over time Community engagement 12