22 | 2023 National Recreation and Park Association The typical park and recreation agency generates $21.71 in revenue annually per each resident in the jurisdiction it serves. Agencies operating in less densely populated areas generate less revenue than do those with a greater population density. The typical agency — serving a jurisdiction of fewer than 500 people per square mile — realizes $12.93 in revenue on a per capita basis per year compared to a median of $27.71 for agencies serving a jurisdiction of greater than 2,500 people per square mile. Small- and medium-sized park and recreation agencies generate more revenue per capita compared to large-sized ones. Agencies serving jurisdictions of less than 20,000 people generate $31.31 in per capita revenue per resident — nearly matching that generated by agencies serving jurisdictions with populations between 50,000 and 99,999, with a median of $32.91 in revenue per resident each year. In comparison, agencies serving populations of more than 250,000 generate $7.39 per capita in revenue, with the amount declining to $6.66 in jurisdictions with populations of more than 500,000 residents, matching the lower quartile amount for agencies overall. Another way to look at revenue generation is by examining cost recovery as a percentage of operating expenditures. The typical agency recovers 24.6 percent of its operating expenditures from non-tax revenues. The amount of cost recovery differs significantly among agencies based on an agency’s portfolio of facilities and programming, the demographics of the populace it serves, the agency’s mission and possible revenue mandates from the agency’s governing authorities. Agencies serving less than 500 people per square mile have a median percentage cost recovery of 25 percent. Cost recovery dips slightly to 22.1 percent of operating expenditures for agencies serving jurisdictions of between 1,000 and 2,500 people per square mile. Beyond day-to-day operations, park and recreation agencies have a median of $10 million in capital expenditures budgeted for the next five years. Not surprisingly, the larger the agency, the larger its five-year capital budget. The typical park and recreation agency serving a population of less than 20,000 has a median five-year capital budget of $1.5 million. Five-year capital budgets FIGURE 20: PARK AND RECREATION REVENUES PER CAPITA (BY JURISDICTION POPULATION) $35 $30 $25 $20 $15 $10 $5 0 PARK AND RECREATION REVENUES PER CAPITA All Agencies Less Than 20,000 20,000 to 49,999 50,000 to 99,999 100,000 to 250,000 More Than 250,000 All Agencies Less Than 20,000 20,000 to 49,999 50,000 to 99,999 100,000 to 250,000 More Than 250,000 Median $21.71 $31.31 $25.14 $32.91 $15.20 $7.39 Lower Quartile $6.66 $8.18 $9.13 $12.85 $5.14 $2.59 Upper Quartile $57.51 $83.28 $69.84 $77.41 $46.71 $21.78 FIGURE 21: REVENUES AS A PERCENTAGE OF OPERATING EXPENDITURES (COST RECOVERY) (PERCENTAGE OF OPERATING EXPENDITURES BY JURISDICTION POPULATION) 35% 30% 25% 20% 15% 10% 5% 0 REVENUES AS A PERCENTAGE OF OPERATING EXPENDITURES All Agencies Less Than 20,000 20,000 to 49,999 50,000 to 99,999 100,000 to 250,000 More Than 250,000 All Agencies Less Than 20,000 20,000 to 49,999 50,000 to 99,999 100,000 to 250,000 More Than 250,000 Median 24.6% 25.9% 25.7% 28.5% 22.0% 16.7% Lower Quartile 11.6 10.9 12.0 14.7 11.5 7.4 Upper Quartile 44.5 50.9 48.1 51.9 38.4 31.4
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