Download - Improving your Cost Recovery
![Page 1: Improving your Cost Recovery](https://reader035.vdocuments.mx/reader035/viewer/2022062411/56816733550346895ddbded1/html5/thumbnails/1.jpg)
1
Improving your Cost Recovery
CPRS Fall Forum
![Page 2: Improving your Cost Recovery](https://reader035.vdocuments.mx/reader035/viewer/2022062411/56816733550346895ddbded1/html5/thumbnails/2.jpg)
Today
• How to get started with determining appropriate levels of cost recovery
• How to make improvements if needed
2
![Page 3: Improving your Cost Recovery](https://reader035.vdocuments.mx/reader035/viewer/2022062411/56816733550346895ddbded1/html5/thumbnails/3.jpg)
3
Its all about the Policy• Policy defines community values• Policy establishes target levels• Policies will vary across
communities
![Page 4: Improving your Cost Recovery](https://reader035.vdocuments.mx/reader035/viewer/2022062411/56816733550346895ddbded1/html5/thumbnails/4.jpg)
4
Menlo Parks policy• Three levels with criteria for each• High cost recovery (70-100%)• Low cost recovery (0-30%)• Everything else is Mid-level (31-
69%)
![Page 5: Improving your Cost Recovery](https://reader035.vdocuments.mx/reader035/viewer/2022062411/56816733550346895ddbded1/html5/thumbnails/5.jpg)
5
High cost recovery programs• Benefit the individual more than the
community• Generally have competition in the
private sector• Are readily available • Can recover a fee easily
![Page 6: Improving your Cost Recovery](https://reader035.vdocuments.mx/reader035/viewer/2022062411/56816733550346895ddbded1/html5/thumbnails/6.jpg)
6
Low cost recovery programs• Benefit the community, overall• Generally have NO competition in
the private sector• May align with a Council or
community goal• Cannot recover a fee cost effectively
![Page 7: Improving your Cost Recovery](https://reader035.vdocuments.mx/reader035/viewer/2022062411/56816733550346895ddbded1/html5/thumbnails/7.jpg)
7
Cost analysis
• What data have you got?• Can you keep track on your own if
Finance can’t help?• Do you know your overhead costs?
![Page 8: Improving your Cost Recovery](https://reader035.vdocuments.mx/reader035/viewer/2022062411/56816733550346895ddbded1/html5/thumbnails/8.jpg)
8
Know what you’re shooting for
• Direct costs?• Budgeted costs?• Indirect costs?• Then set your target and time frame
–Eat the elephant…–Know what’s realistic
![Page 9: Improving your Cost Recovery](https://reader035.vdocuments.mx/reader035/viewer/2022062411/56816733550346895ddbded1/html5/thumbnails/9.jpg)
9
Planning questions
• What are our priorities for improvements?
• What infrastructure do we need to develop?
• Are we ready to justify changes to our community? If so, how will we do it?
![Page 10: Improving your Cost Recovery](https://reader035.vdocuments.mx/reader035/viewer/2022062411/56816733550346895ddbded1/html5/thumbnails/10.jpg)
10
Menlo Park
• We got EVERYONE involved• Lots of staff training• Improved measuring and monitoring• Held staff accountable (gently)
![Page 11: Improving your Cost Recovery](https://reader035.vdocuments.mx/reader035/viewer/2022062411/56816733550346895ddbded1/html5/thumbnails/11.jpg)
11
Sustainable services matrix
• Hard decisions about service mix and business models
• Helped determine where fee increases were appropriate
![Page 12: Improving your Cost Recovery](https://reader035.vdocuments.mx/reader035/viewer/2022062411/56816733550346895ddbded1/html5/thumbnails/12.jpg)
12
What really worked for us
• Changed our business model where needed
• Set achievable targets over time• Community engagement