Finance Committee Agenda and Packet 2018 03 12

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City Council Finance Committee Meeting Minutes 02/19/18 Page 5 of 7 City Manager Balser stated that the process is long, intensive, and requires many resources, but that before any such program could be implemented at the City of Louisville, the scope of such a project needs to be understood, and there needs to be a long-term strategic plan in place. Mayor Muckle and Member Lipton agreed that a high level overview of a Performance Management Program should be presented at a future City Council Study Session. Chairperson Maloney stated that he would meet with City Manager Balser to discuss how to best align the discussion for presentation. The reports and corresponding narrative can be located in the packet of the February 19, 2018 Finance Committee Meeting. RECREATION & SENIOR CENTER — COST CENTERS AND CORRESPONDING REVENUE Finance Director Watson presented to the Finance Committee examples of financial reporting available through the general ledger for discussion. Finance Committee Member Lipton stated that the finances for the Recreation Center construction and programs are areas of focus. Member Lipton stated that the reports provided do not get to the activity centers and the data cannot be matched. Member Lipton stated he is looking for a cost accounting structure that treats the Recreation Center as a profit center. Member Lipton stated that memberships, fees, and other operational costs need to be allocated so that pricing structures for cost recovery can be reviewed. Parks and Recreation Director Joe Stevens stated that the feasibility study provided and the related data used for the ballot question indicate appropriate cost recovery with compared with other Recreation Center revenue and expenses. City Manager Balser asked Director Stevens what is the normal cost recovery percentage for Recreation Centers? Director Stevens stated that the national average is 45-50%, and that the Louisville Recreation Center is doing better at 65- 70%. Director Stevens added that Recreation Center fees and charges also have to align with what the market will bear. Director Watson asked for clarification of the "cost centers" desired by the Finance Committee and how far down Members are wanting to drill into revenues and expenses. Mayor Muckle stated that the Sub -Programs have already been selected and that any additional reporting needs to be tailored to only those items of importance. Director Watson stated that the Expenditures can be expanded to provide line item detail. 6