2023 NRPA Agency Performance Review | 21 AGENCY FUNDING Funding sources for park and recreation operations vary greatly by agency; however, support from the local jurisdiction’s general fund tax base is common. On average, park and recreation agencies derive slightly more than three-fifths of their operating expenditures from general fund tax support. However, the percentage of funding from general fund tax support tends to be lower for those agencies with larger operating budgets. The second-largest source of funding for most agencies is earned/generated revenue, accounting for an average of 22 percent of operating expenditures. In addition, many agencies have access to special, dedicated taxes that cover a part of their budgets, while others obtain much of their funding from tax levies dedicated to park and recreation purposes approved by citizen referenda. But as mentioned previously, many agencies generate funding from non-tax revenue (such as fees for special programming). The typical park and recreation agency generates nearly $1.3 million in non-tax revenues annually, although this amount can vary significantly based on agency size, the services and facilities offered by an agency and the mandate from agency leadership and policymakers. Agencies with annual operating budgets of less than $500,000 typically generate nearly $44,000 in non-tax revenues. In comparison, those with annual budgets greater than $10 million generate a median of slightly more than $5.9 million from nontax revenue sources. FIGURE 19: SOURCES OF OPERATING EXPENDITURES (AVERAGE PERCENTAGE DISTRIBUTION OF OPERATING EXPENDITURES) General fund tax support Earned/Generated revenue Dedicated levies Other dedicated taxes Other Grants Sponsorships 61% 22% 8% 3% 2% 3% 1% General fund tax support 61% Earned/Generated revenue 22 Dedicated levies 8 Other dedicated taxes 3 Other 3 Grants 2 Sponsorships 1 Youth who use wheelchairs participate in inclusive programming in Hopewell, Virginia. PHOTO COURTESY OF HOPEWELL RECREATION AND PARKS
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