City of Morgan Hill Bikeways, Trails, Parks and Recreation Master Plan

REVENUE ANALYSIS

1) Parcel Tax: A parcel tax is either based on a flat per-parcel rate, calculated on the use, size and/or number of units on each parcel or an asset valuation. A parcel tax requires approval by two-thirds of city voters. 2) Sales Tax: Cities can generate revenue by increasing the 7.5% state sales tax to increase the general fund or to fund a specific purpose (e.g. parks and recreation). A sales tax increase dedicated to a specific purpose requires approval by two-thirds of city voters. 3) Real Estate Transfer Tax: A real estate transfer tax, is levied when there is a transfer of real property and when residential, commercial and industrial construction occurs. Adoption, and any increase or changes to a real estate transfer tax requires approval by two-thirds of city voters. FEES AND CHARGES Cost recovery through user fees is typically only used to offset General Fund maintenance and operations costs. Fees and charges create a direct connection between the funding source and the beneficiary of the service. This is a widely accepted way to provide services, however fees and memberships can keep lower income residents from participating in recreation programs. Equity concerns may be addressed when developing a pricing system to ensure that the City is providing its core services to all citizens.

TABLE A.1. TYPE OF RECREATION AND PARK FEE

Types of Recreation and Park Fees

Fee Type Entrance/ Parking

Description

Example

Charges to enter a developed recreation site at the patron’s first contact with the area; the area may contain facilities or activities for which fees are charged Charges to enter a building, structure or natural chamber where entry and exit are controlled and attendance is regulated. Charges for participation in an activity. Revenues obtained from stores, gift shops, restaurants and other retail

Large parks, gardens, wildlife preserves, historical areas.

Admission

Museums, historical buildings.

Programs

Lessons, camps, classes, leagues. Food and drink items, catering service, souvenirs, firewood, film, clothing.

Sales

BIKEWAYS, TRAILS, PARKS & RECREATION MASTER PLAN | A-3