Cost of Service Methodology

Cost of Service update revamps financial strategies for parks and recreation department

Why it matters: Redmond's approach to balancing public service with fiscal responsibility, utilizing Berry-Dunn's (formerly Greenplay) pyramid methodology sets a benchmark for adoption of a cost recovery policy. It emphasizes affordability, fairness, and compares community versus individual benefits and the pricing structure related to those benefits. The strategy includes comprehensive evaluations of program costs and benefits, aiming for sustainable financial management. This document also starts with the codified resolution that was adopted by City Council in April 2022.

Go deeper: A previous study conducted in 2017, laid out an ambitious vision that adopted an umbrella policy statement setting the underlying principles of the cost recovery and service pricing approach. An aggressive goal to recover 100% of direct costs for Tiers 2-5 by 2025, was eventually unsustainable which was exacerbated by the pandemic. The pyramid methodology "is built on a foundation of understanding who is benefiting from park and recreation services to determine how the costs for service should be funded. The model illustrates a pricing philosophy for establishing fees commensurate with a target Cost Recovery level based on the benefit received."

Population Size: 73,000