Parks director flags risk of membership-price hikes as board reviews preliminary 2025 budget

The Park Advisory Board on Aug. 8 reviewed a preliminary 2025 budget that projects $2,242,856 in revenues and $2,349,603.54 in expenditures, leaving a $50,676.14 shortfall toward a stated goal of 100% cost recovery.

Parks & Recreation Director J.C. Kennedy told the board the proposal includes 5% increases in programming fees, rentals and membership fees and a goal to boost participation and memberships by 5% and 15%, respectively. "Increasing fees has a nominal effect on revenue generation," Kennedy said, "but raising membership fees even more has a very high potential of having a net negative effect on revenue as more people may find the facility too expensive, and the risk of moving past the tipping point for the demographic we serve is a real concern."

Kennedy said the Recreation Center is directly responsible for generating $56,071.40 in sales tax revenue and that the department will monitor the regional cost-of-living adjustment from the Department of Labor and Industries before finalizing wage and budget decisions. He told the board he had advised the City Council Finance Committee that the department needs "more evaluation and some patience" pending L&I guidance expected in October.

The board did not take a final vote on the budget at the meeting; Kennedy presented the figures for review and asked the board to consider options to close the remaining gap. The presentation included a historical comparison of tax-generated revenue from 2018 through 2023 and noted a $61,965.52 reduction in expected utilities expenses compared with 2023, offset by an additional $30,957.55 needed to fund utilities for the remainder of 2024.

Board members approved routine meeting business during the session, including the agenda and prior minutes; no formal budget adoption occurred. The board is expected to continue budget deliberations as staff refines estimates and awaits L&I guidance.