Parks department outlines budget pressures and targeted fee and staffing proposals to sustain services

City of Boulder Parks and Recreation staff told the advisory board their operating funds face growing long-term pressure and outlined targeted revenue and staffing proposals intended to sustain current service levels.

Jackson Knight, business services manager, and Stacy Hopkins, presenting budget strategy, walked through three fund financials: the 0.25¢ sales tax fund, the permanent parks and recreation fund and the Recreation Activity Fund (RAF). Staff said the RAF is more enterprise-like and must increasingly rely on fee revenue. Hopkins summarized typical budget mechanics and reserves, noting the city requires an operating reserve at about 16.7 percent and that the department is examining base-cost increases and realignments before submitting enhancements.

On the Recreation Activity Fund, staff presented a multi-year projection that shows a positive 2026 position but moves into deficit in later out years if no changes are made. Hopkins said the RAF currently receives a general-fund subsidy that has been flat for years and a conditional transfer from the 0.25¢ sales tax fund that staff have been using to subsidize community-benefit programming.

The department listed targeted enhancement and revenue proposals to the board: additional nonstandard staffing dollars for aquatics (based on 2024 actual lifeguard staffing needs), a staffing conversion in business services from fixed-term to ongoing to retain capacity, marketing investments to drive revenue, and gymnastics staffing to meet demand (the gymnastics program generated about $1.2 million in the prior year and is projected to grow). The department also flagged golf-course rate increases and membership-structure changes as high-impact items because the course is in the bottom third of the market and could capture more revenue.

Board members pressed staff on how fee increases would affect participation. Staff said they would phase changes and use market comparisons and demand analysis to limit attrition. Staff gave a planning rule of thumb: community-benefit programs aim for lower cost recovery while services of individual benefit (private instruction) are projected to target higher recovery levels. As Allie Rhodes, director of Parks and Recreation, said during the meeting, “This board really struggled with the fee increases we had to pass to balance our budget,” noting the department had previously increased fees to maintain operations.

Staff said they plan to return with fuller dollar amounts and more specific fee scenarios next month and recommended board members review the packet in advance so the June meeting can focus on trade-offs.

No formal votes were taken; the board will consider a department budget submission in July as it enters the city’s executive budget review process.