Revenue Report for Park Commission
CITY OF
CHANBASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
MEMORANDUM
TO:
Todd Hoffman, Park and Recreation Director
FROM:
Tom Knowles, Recreation Center Manager
DA TE:
January 16, 2007
SUBJ:
Revenue Report for Park Commission
The Recreation Center derives its revenue almost exclusively from user fees.
There are four main categories of user fees:
. Fitness: The Fitness category is made up of punch card sales, daily
drop-in fees, and group fitness class fees. Punch cards and daily drop-in
fees provide our customers with daily use of our fitness room or
gymnasium. The basic fee for a daily visit with either a punch card or
daily drop-in fee is $2.50 for a Chanhassen resident and $3.00 for a non-
resident (the actual per visit daily fee is further reduced when patrons
purchase a 20- or 40- punch card).
. Personal Training: The fees for Personal Training allow our customers
to work one-on-one with a personal trainer in developing a training
program geared to meet individual needs.
. Program Fees: Program fees cover the various programs offered by the
Recreation Center, the largest being our Dance for Fun program.
. Room Rental Fees: Room rental fees are paid by our customers when
renting meeting rooms or gymnasium space at the Recreation Center.
The rental rate for meeting rooms is $15/hour/room. The gymnasium
rents for $40/hour.
I have examined revenues at the Recreation Center for 2004, 2005, and 2006. I
chose 2004 as the starting point since it was the last year before Lifetime Fitness
opened in Chanhassen. Revenues have declined substantially at the Recreation
Center since 2004:
Total revenue 2004 - $165,221
Total revenue 2005 - $135,6140
Total revenue 2006 - $120, 388
The City of Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
Mr. Todd Hoffman
January 16, 2007
Page 2
Losses in revenue have been most noticeable in the Fitness and Personal
Training categories:
Revenues
Fi tness
Personal Training
2004
$72,003
$22,332
2005
$52,230
$ 4,972
2006
$39,116
$ 120
Revenues from Program Fees and Room Rental Fees have remained relatively
stable.
The implementation of new revenue producing programs is the primary goal for
us at the Recreation Center in 2007. Several possibilities are already being
explored. We are planning on bringing Jazzercise (a group fitness program) to
the Recreation Center in March. I have been working with a representative from
Fungos (www.fungos.ws) in bringing some youth sports and arts programming
to the Recreation Center. I am also working with a certified personal trainer and
golf professional to revive our personal training program and develop golf
instructional programs. I hope these initiatives will produce additional revenues
for the Recreation Center in 2007. I am also seeking additional revenue
enhancing ideas from all interested parties. I wish to thank the members of the
Park and Recreation Commission for the time they are spending at the
Recreation Center this month and invite them to share any ideas on this subject.