TO: Mayor and City Council
FROM: Finance Committee of the Salem City Council and the Urban Renewal Agency of the City of Salem
SUBJECT:
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Adjustment to Community Service fees and increase certain youth recreation fee waivers
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance, Welcoming and Livable Community.
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SUMMARY:
summary
Over the past year, the Finance and Community Services Departments have worked with a consultant to analyze the City’s Community Services fees, determine the cost of providing fee-based services, and propose a minimum cost recovery framework. The resulting Community Services fee study led to staff proposed adjustments to the FY 2026 Fee Schedule. After multiple City Council Finance Committee meetings to consider staff’s recommendation, the Committee amended the proposal to increase and broaden the youth recreation fee waiver program and recommended the amended fee schedule adjustments to City Council.
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ISSUE:
Shall City Council adopt Resolution 2025-24 adjusting certain community service fees and increasing certain youth recreation fee waivers?
RECOMMENDATION:
recommendation
Adopt Resolution 2025-24 adjusting certain community service fees and increasing certain youth recreation fee waivers.
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FACTS AND FINDINGS:
Over the course of several months, the Community Services Department, in conjunction with the Finance Department, partnered with Matrix Consulting Group to review Community Services Department fees. The Community Services Fee Study (Attachment 3) included a review of current fees, minimum cost recovery goals of programs associated with those fees, and comparison of rates to similar jurisdictions. The findings of the study resulted in the following recommended methodology for minimum cost recovery goals. The goals are based on a community benefit pyramid model where programs with highly individual benefits have the highest cost recovery goals while programs with a larger community benefit have lower cost recovery goals. These goals express the minimum cost recovery the City would be targeting.
Resolution 2025-24, Exhibit A (Attachment 2) of this report demonstrates the revised Community Service Department Fee Schedule as recommended by the Finance Committee with changes from the current fee schedule indicated in red text. Some of the fees are not changing at all due to specific circumstances. For example, softball / kickball tournament fees increased significantly in the prior year, so Community Services staff suggested delaying another increase until FY 2027. The timing of this adjustment allows the City to use the new rates for the calendar year 2026 recreation season which typically starts in the spring.
Acknowledging that some of the greatest impacts of the revised fees would be felt in youth recreation programs, the Finance Committee amended the staff recommendation to include a fee waiver increase for youth recreation fees. Currently fee waivers are only provided for summer parks programs and youth sports camps at waiving 20% of the fee.
The Finance Committee recommendation increases the waiver to 50% and applies it to all youth recreation activities except contracted programming, the Salem Kids Relay, and Recreational Distance / Fun Runs. The Salem Kids Relay is a partnership with local schools who already provide support for participation in the event. Recreational Distance / Fun Runs are low-fee events and staff has not found that fees have been a barrier to participation.
BACKGROUND:
Historic fee data as well as current and proposed minimum cost recovery levels by fee are displayed in Attachment 4 of this report in response to the request for that data during Finance Committee deliberations.
Additionally, a display of current recreation fee waivers, fee waivers prior to 2024, and fee waiver utilization are shown below.
Prior to 2024
• 100% Fee waiver for Summer Parks Program and Jr. Ranger Program (60% utilization)
• 20% Fee waiver for contracted camps (6% utilization)
• 50% Fee waiver for sports camps (25% utilization)
Effective 2024
• 20% fee waiver for Summer Parks Program and Jr. Ranger Program (17% utilization)
• No fee waiver for contracted camps
• 20% fee waiver for sports camps (15% utilization)
At the August 18, 2025, Finance Committee meeting, members requested additional information about fee waiver options for youth recreation and the financial implications of higher fee waivers. Based on 2019 waiver participation numbers, the City would forego about $31,000 in revenue if the proposed youth recreation fees and a 50% fee waiver program were adopted. Due to the COVID-19 pandemic impact on recreation programs for years 2020 - 2022 and community concern around parks programing continuing in years 2023 -2024, the City does not have a more recent period to analyze.
The Committee also asked about a tiered waiver structure where waiver percentages are based on income level. The City has historically not offered tiered waiver and discount programs to the community due to the additional administrative and liability implications of collecting personal financial data necessary to implement such a system. With the current waiver program the City is able to quickly and easily identify if a community member qualifies for the waiver based on their existing participation in free and reduced lunch programs, Oregon Health Plan (OHP), or on Supplemental Nutrition Assistance (SNAP, also called EBT or Oregon Trail Card).
James Wharton-Hess
Sr. Fiscal Analyst
Attachments:
1. Resolution No. 2025-24
2. Resolution No. 2025-24, Exhibit A
3. Community Services Fee Study
4. Historic Fee Data and Cost Recovery Details