TO: Mayor and Members of City Council
THRU: Adam Lindsay, Assistant City Manager
FROM: Michael Gibson, Parks, Recreation and Maintenance Director
DATE: October 14, 2024
RE:
Title
Recreation District Cost Allocation & Funding
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal IV: Desirable Place to Live, Work and Recreate
Executive Summary:
The City and County are working towards an amendment to the 2004 Operating Agreement that led to the formation of the very successful consolidated City of Fayetteville and Cumberland County parks and recreations department. The principal reason for the City requesting a change is related to the $60,000 indirect cost that the County pays to the City, per the agreement. Because that charge has not kept up with inflation and other cost increases, the City and County are working out a new method that both elected bodies will need to approve.
Background:
Recreation services were consolidated in the City of Fayetteville and Cumberland County's Recreation District in 2004. The "recreation district" refers to those areas within the county of Cumberland that contribute their recreation tax to consolidated services. At the time of consolidation, the City and County entered into two agreements: an Interlocal Agreement and an Operation Contract. The Interlocal Agreement dictated the terms of the consolidation, to include the transfer of employees from the County to the City. The Operations Agreement defined responsibilities moving forward, to include the financial responsibility of $60,000 to be paid annually from the County to the City for indirect administrative costs. That amount has remained unchanged for 20 years and is being evaluated.
Indirect cost allocation involves distributing shared administrative expenses (like HR, IT, or finance) to various departments or programs that benefit from these services. Since these costs can't be directly linked to a single departm...
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