Survey studies user fees

Last summer, Thompson Dyke and Associates, Ltd. of Northbrook surveyed public agencies in the Chicago metropolitan area that own and operate major recreational facilities which charge user fees. A summary of its findings is presented below.

By Thompson A. Dyke

The purpose of the survey was to determine if (1) revenues generated by these facilities exceed expenses and (2) there is a trend developing among recreational facilities to charge user fees greater than expenses. The survey concentrated on four types of recreation: golf, indoor tennis, outdoor swimming pools and indoor ice facilities.

Golf

According to the National Golf Federation, the United States has 130,000 public and private golf courses with almost 18 million players. This is more than the rest of the world combined. Great Britain is second with 2,000 courses and 2 million golfers.

In 1983, Thompson Dyke and Associates found 126 public golf courses in the Chicago area that charged a daily fee. The average weekday charge was $9.34 while the Sunday charge was $11.64 for 18 holes of golf. Five of these public courses were chosen for more definitive analysis, based on their 1982 fiscal reports.

These districts represented approximately 266,000 people. Together, they owned and maintained 99 holes of golf, or one hole of golf for each of the 2,692 people in their respective districts. A general analysis showed that each man, woman and child played golf once a year, as there was an average of 58,330 users per year for each district. The number of users ranged from 40,000 in the smallest district to 80,000 in the district that had 27 holes and 39,000 people.

Gross annual income averaged $520,000 while gross annual expenses averaged $530,000. However, four of the five districts averaged $90,000 in excess of expenses.

Indoor Tennis

The summer survey did not produce significant information to form conclusions, as only 2 out of 16 districts reported on their combined courts. Their income ranged from $287,000 to $353,000, while their expenses ranged from $186,000 to $455,000. One district was able to exceed expenses by $100,000. The other district spent $100,000 more than it took in during 1982. The facility with the most indoor courts received less incomes, but also spent the least money.

Outdoor Swimming Pools

Four park districts, with a total of nine outdoor swimming pools, were analyzed and found to have more than 257,000 users. This shows an average of 64,000 persons per district, or more than 28,500 users per pool during the summer of 1982. The annual income from user fees ranged from a low of $82,000 to a high of $132,000. This averaged to $109,000 per district or $48,400 per pool. Three of the four districts lost an average of $71,400 each, spending approximately $160,000 to operate and maintain their pools. The conclusion: user fees should be raised.

Indoor Ice Arenas

The survey of indoor ice facilities was limited to two districts for the 1982 season. The two districts combined have three arenas. The revenues received were slightly in excess of $1.3 million, or more than $436,000 per rink. Expenses were less than revenues by almost $100,000 (about $33,000 per rink). Indoor ice skating appears to be continuing in popularity and is paying its own way.

Other Questions

The public agencies responding to the survey were asked whether they are making long-term fee projections as a way to determine future budgets. Most indicated they were not doing so. Rather, they intend to project fees on an annual basis to cover expenses. When asked what percentage of their agencies' total budget was from user fees, the average amount was 35 percent. An average of 27 percent of total expenses is generated from user fee facilities. The average bonded indebtedness of districts surveyed was $2.4 million.

The final portion of the survey indicated that public agencies, forest preserves and park districts overwhelmingly believe that user fee facilities will become common in the years ahead.

ABOUT THE AUTHOR: Thompson A. Dyke is the founder and president of Thompson Dyke and Associates, Ltd., a professional design firm specializing in park planning and design. He is also a landscape architect and licensed planner with offices in North-brook, Ill.

Illinois Parks and Recreation 7 July/August 1984