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General Fund The Parks, Recreation and Cultural Services Divisions have three cost categories within the General Fund for O&M: • Operating and maintenance includes expenditures for personnel, supplies, equipment and fleet and facilities maintenance. • Central administrative services are the City's central business functions, such as human resources. • Fleet acquisition costs are for new or replacement vehicles, and are included in the Fleet Fund. The Parks, Recreation and Cultural Services Divisions' General Fund operating and maintenance expenditures for Fiscal Year 2003 -2004 are about $14.8 million. But to show actual operating and maintenance costs associated with providing parks, recreation and cultural services in Eugene, some expenditures must be added on to the divisions' General Fund operating and maintenance expenditures, including indirect costs for Central Services and fleet acquisition costs. The allocation of Central Service costs is a department's share of the City's costs for central business functions. The City calculates the allocation for each department to estimate the frill cost of providing services. The City calculates departments' indirect costs by summing the Central Services Department's costs for indirect services and each department's administrative costs. Total administrative costs are then reallocated across departments. Because the allocation for indirect services includes department administrative costs, we do not include the LRCS and Public Works Departments' General Fund administrative costs before adding the indirect service allocation. The Central Services cost allocation for Parks, Recreation and Cultural Divisions' totals $1.5 million. Fleet acquisitions for General Fund purposes total an estimated $185,000 and are paid for with a transfer from the General Fund to the Fleet Fund. Because such fleet acquisition costs for parks, recreation and cultural services are paid for with a General Fund transfer we must add those costs to General Fund O&M expenditures to understand the full General Fund contribution to parks, recreation and cultural services. We have calculated total General Fund costs for parks, recreation and cultural services to be $16.5 million. Based on estimated total assessed value in Eugene we calculated that the City of Eugene expends the equivalent of $1.88 per $1,000 in assessed value for parks, recreation and cultural services O&M. Property taxes do not cover all costs for parks, recreation and cultural services. To calculate the actual property tax contribution to the provision of services we need to first reduce our calculation for total General Fund costs ($16.5 million) by the amount of revenue that a particular service contributes to the General Fund. In total, the Parks and Open Space, Recreation and Cultural Services Divisions contribute $5.4 million in revenue to the General Fund. Thus, General Fund costs that are not covered by revenue generated by parks, recreation and cultural services total $11.1 million. We calculated the property tax contribution to this amount by determining Page 7 -10 ECONorthwest October 2004 RR/SC Fiscal Analysis: Patios