User Fee Review

Updated 9/28/2011

Per the proposed User Fee Policy, the following information should be used in review of changes to City-charged user fees.

Fee Reviewed:                     2012 Proposed Eagle Bend Golf Rates 

Area	Review Item	Response	Notes
Cost	How much does it cost the City to provide the service?	Annual budgeted operating and maintenance costs are $1,170,460 and are managed not to exceed generated yearly revenues.   However, the annual budget does not include the cost of city utility services (water, wastewater and solid waste services) or indirect costs (parks and recreation administration, human resources, payroll, accounts payable, etc.) The budget does not include approximately $285,000 annually in debt service payments, which are funded through the city’s share of the county-wide sales tax.  Debt service payments will be retired in 2016.
Service, Purpose, Users	What is the service?	Provide a top quality public golf course offering a driving range, individual and tournament play as well as individual and group lessons.
	Why does the City provide the service?	To provide affordable golf opportunities to the citizens of Lawrence and Douglas County.
	Who uses the service?	Citizens, businesses, visitors, youth, and school sports teams
Cost Recovery Goal	How much of the cost of service is subsidized by general tax revenue?	Operational and maintenance costs are funded solely through fees generated.  The county-wide sales tax funds debt service payments of approximately $285,000 annually.  Other indirect, administrative costs (HR, IS, finance, etc) are paid from the City’s General Fund, which is supported in part by general tax revenues.  The City leases the property from the federal government so there are no property taxes on the property.
	How much of the cost does the City intend to recover through fees and charges?	100%.  The goal is for fees charged for play in addition to revenues from charges for concession and pro shop items to cover the annual cost of operations and maintenance.
Level of Use or Demand	How many people or businesses use the service?	Approximately 20,000 rounds of golf are played annually.  This level is down from peak levels in the early 2000’s, due in part to changes in the economy as well as increased competition. Lessons, driving range visits and golf shop sales account for an additional 7,000 to 8,000 visitors per year.
Comparisons	How do the City’s fees compare with other cities or with private businesses?	The City compares itself to a number of regional courses. Lake Shawnee and Cypress Ridge public courses in Topeka are the most similar to Eagle Bend. Village Greens in Ozawkie is not considered to be the same quality but does provide competition in play time. Alvamar is a higher profile course Kansas City area courses are a different market.	See attached.
Other Fee Reviews	When did the City set the current rate?	Current rates were established in 2010, at which time weekend fees were increased.	Staff believes current weekday rates are too high in this economy.
	When did the City last review the fee?	Fees are reviewed annually. Throughout the year, staff monitors fees based on weather and prices of surrounding courses.  If the current situation is appropriate, specials may be run throughout the year, for example reduced rates during periods of extreme heat, back to school rates, winter rates, etc.
	When does the City plan to review the fee next?	Regular review is ongoing.
Stakeholder Input	How did the City seek input from stakeholders, such as users of the service?	Receiving customer feedback at the point of sale and after the round, about pricing.  Reviewing local, regional and national golf course trends.
	What input did stakeholders provide?	Players informing us about how they appreciate the lower prices and specials.  They seek out area courses that have adequate facilities and competitive pricing.
Authority	What part of the City Code or other legal authority guides the fee?	Chapter XV, Article 3, Section D of the Code of the City of Lawrence
Fee Collection Method	How will the City collect the fee?	Fees are collected through daily and annual passes and by charging for lessons and tournaments.  Fees collected are accounted for through the Golf Trac system.