1. Trends & Historical Data Information for 2016/2017 Budget Development July 30, 2015

2. Outline  “Fee vs. Free” and “Existence Cost” Concepts  Data by Program Area  Aquatics  Tennis  Camps  Special Events  Walker Nature Center  RA’s Benchmarking Practice  Overall Cost Recovery  Board Decision Points 2

3. Programs & Events: Fee vs. Free 3 Fee: “Pay to Play” Members and non-residents must pay a fee to participate. Direct program costs are covered in full or in part by registration fees. Examples: Swim and tennis lessons Camps Leagues One-time events and programs Free: “Community Spirit” Members participate for free. Program costs are supported by the Annual Assessment. Examples: Community Cookouts Ice Cream Socials Senior Movie Day Multicultural Festival

4. Facilities & Amenities: Existence Cost  Existence Cost: The cost of owning, operating, maintaining, repairing and replacing a facility or amenity.  RA incurs “existence costs” for its facilities regardless of the program revenue earned at that facility and member usage of the facility. 4 Existence Costs Access Fees Capital RepairsFacility MaintenanceUtilitiesStaff Pool & Tennis Pass Sales

5. Data by Program Area  Program Areas:  Aquatics  Tennis  Camps  Special Events  Walker Nature Center  Data presented for each program area:  Program Area Summary  2016 Expenses, Revenues and Cost Recovery for Existence  2016 Expenses, Revenues and Cost Recovery for Programs 5

6. Aquatics Summary  15 outdoor pools dispersed throughout the community  One 50-meter pool, 2 heated pools  Open season longer than most HOAs (early May – late Sep.)  Annual open swim visits ranging from 150,000-170,000  Programs (swim lessons, certification classes, parties, etc.) serving approximately 1,300 participants annually  Approximately 650 hours of pool rental time to local day care operators and swim teams annually  In 2014, over 24,000 pool passes sold (adult and child) 6

7. 2016 Aquatics (Pools) Existence Costs  Lifeguard staff & management  Pool maintenance/repair  Utilities  Chemicals  Signage & code compliance  Pool pass printing 7 Supported by Annual Assessment = $45.59 per Unit Sales of Pool & Tennis Passes

8. 2016 Aquatics Programs & Rentals  Group Swim Lessons  Private Swim Lessons  Lifeguard Classes  Pool Parties  Pool Rentals (day care & swim teams) 8 Expenses: Primarily staff-related (operators, instructors) Net profitability of Programs = $18,960 Revenues = Registration/Rental Fees

9. Tennis Summary  52 tennis courts across 14 locations  26 lighted courts, 8 clay courts, & 6 courts designed for 8 and under play  Over 770 registrations for Junior Lessons (ages 3-17)  Over 360 registrations for Adult Classes  Tennis leagues serving over 350 people 9

10. 2016 Tennis (Court) Existence Costs  Staff: management, maintenance, court monitoring  Court maintenance/repair  Utilities  Court monitoring 10 Supported by Annual Assessment = $7.05 per Unit Sales of Pool & Tennis Passes, equipment sales

11. 2016 Tennis Programs & Rentals  Group Tennis Lessons  Private Tennis Lessons  Leagues  Birthday Parties 11 Expenses: Primarily staff-related (instructors) Net profitability of Programs = $22,082 Revenues = Registration/Rental Fees

12. Camps Summary  Over 1,600 camper registrations across 13 camps serving children ages 3-16  Offered over 60 camp scholarships in 2014  What makes RA camps special?  Currently in 41 st year of RA (formerly RHOA) camps  Longest running camp program in Reston  Staff to camper ratio of 1:6  Most other camps’ ratios are 1:10 - 1:12  Campers travel to multiple RA and non-RA destinations 12

13. 2016 Camps  Staff  Van rentals  Field trips  Program supplies  Licensing fees & training 13 Includes $29,460 in scholarships. Supported by Annual Assessment = $1.96

14. Special Events Summary  Offer both “fee” and “free” events and programs for all ages  Approximately 120 events and programs reaching 17,500 participants annually 14 FeeFree Children’s Events (e.g. Bruno’s Barnyard Bash, Pirate Parties, etc.) Reston Multicultural Festival Senior & Family Bus TripsBike to Work Day Community Yard SaleJuly 4 th Celebration Senior Wine TastingSenior Movie Day Wine & Design EventCommunity Cookouts Appraisal Road ShowBicycle Safety Rodeo Totally Trucks!

15. 2016 Special Events  Event and program supplies  Refreshments  Bus rentals  Entry fees for special trips (e.g. museum or theater tickets)  Event signage 15 Revenues = Ticket sales and registration fees Supported by Annual Assessment = $5.64 per Unit

16. Walker Nature Center Summary  72-acre property, including demonstration gardens, a wildlife pond, 1 mile of trails, wildlife management and a LEED-Gold Certified Nature House  Over 360 programs annually, including school/SOL field trips, scout/youth programs, adult classes and workshops.  Serves over 26,000 program participants and visitors annually, including walkers, bikers, wildlife watchers and native plant observers  Facility rentals (multipurpose room, campfire ring) 16

17. 2016 Walker Nature Center  Staff  Facility maintenance  Grounds maintenance  Program supplies  Exhibits, displays, and learning materials 17 Revenues = Program, event, and class registrations, facility rentals, donations, Supported by Annual Assessment = $15.17 per Unit

18. Benchmarking Process How often?At a minimum, every 2 years. Also done from time to time when a new program is piloted, or when a program is doing especially well or poorly. Who?Some of the organizations we benchmark against include Fairfax County Park Authority, Herndon & Reston Community Centers, Loudoun County, Arlington County, and the City of Alexandria. What?We benchmark specific program details such as price, length of time, number of participants per program, age range, and time of day for all our main program categories. Results?Changes to program design and fee structures. 18

19. Preliminary Conclusions from Biennial Benchmarking  Examples of new, tweaked, and scratched programs in 2015:  NEW: Pilot program for Triathlon Camp and Pop Golf Camp  NEW: Special short-court tennis class for seniors called 60’s Tennis  TWEAKED: Half day Hug-a-Tree is now full day Junior Day Camp  TWEAKED: Increased fees for Junior Team Tennis, Tennis Leagues and Tennis Lessons  SCRATCHED: Tennis ball machine rental  COMING: Additional conclusions from GMU Parks & Recreation Survey 19

20. Cost Recovery Benchmarking  How does RA compare to other recreation service providers in terms of cost recovery? Note: Overall, Reston Association has a high number of facilities per person compared to other local recreation service providers. Recreation Service ProviderBudgeted 2014 Cost Recovery Arlington County Parks & Recreation22.7% Reston Association Parks & Recreation (All Departments)26.9% Vienna Parks & Recreation40.0% City of Fairfax Parks & Recreation41.0% Fairfax County Park Authority58.8% 20

21. Recreation Programming Cost Recovery for 2016  Aquatics:  $833,189 Revenues  $1,799,815 Expenses  46.3% Overall Cost Recovery (Existence & Programming)  Tennis:  $332,747 Revenues  $463,115 Expenses  71.9% Overall Cost Recovery (Existence & Programming) 21

22. Recreation Programming Cost Recovery for 2016  Camps:  $409,196 Revenues  $451,466 Expenses  90.6% Overall Cost Recovery  Special Events:  $38,720 Revenues  $160,659 Expenses  24.1% Overall Cost Recovery  Walker Nature Center:  $83,346 Revenues  $411,202 Expenses  20.27% Overall Cost Recovery 22

23. Scholarships  Who?  Program participants who meet standard eligibility requirements, i.e. Free/Reduced Lunch, Tax Relief, etc.  What?  Camp enrollment  Swim lessons  Tennis lessons  How much?  Over $36,400 in 2016 23

24. RA Board Decision Points  Is the Board comfortable with operating and maintaining the current number of pool and tennis facilities we have?  Is the Board willing to increase pass fees to shift a greater share of the costs to the actual users?  Is the Board willing to reduce the number of facilities to reduce operating and capital costs?  At what level does the Board wish to fund scholarships for camps, swim lessons and tennis lessons?  What is the ideal role for the Friends of Reston in fundraising for scholarships?  Should the board collapse its Non-Resident offerings to draw in more non- resident revenue?  To increase sales of Non-Resident passes, should the board decrease fees? 24