Village Board responds to fee dispute with not-for-profits




In May 2016, the Village adopted a plan (named the Strategic Plan – Phase 1) to renovate our playing fields and our recreational facilities. The plan was the result of numerous public meetings through the Department of Recreation and Parks and the Board of Commissioners of Cultural and Recreational Affairs. Numerous groups, including the GCAA Baseball, Centennials Soccer, Rams Football and Lacrosse groups were involved in the process. The plan can also be viewed on the Village website.

The Recreation Department’s Maintenance Division is responsible for the daily and preventive maintenance of approximately 30 buildings totaling approximately 110,000 square feet and the maintenance and upkeep of 100 acres of active park property, including 78 acres of natural turf athletic fields. Altogether our inventory of recreational facilities includes 16 baseball/softball fields, 17 soccer/lacrosse fields, 6 outdoor tennis courts, 9 basketball courts, and 7 playground systems.

The members of the Board of Trustees recognized, based on personal experience (several of us have children who play various sports) and as the result of input from the various groups who operate and run many of the sports leagues and cultural offerings in our Village and the voices of many of our neighbors, that it was past time to renovate many of these facilities. The Commission members, the sports groups, parents and the Board of Trustees felt that the facilities, especially some of the fields, were too dilapidated or worn, or soon would be, for our children to safely play on.

We have now completed several portions of the plan, including new artificial turf facilities at Community Park, new infields and sprinkler systems at most of our neighborhood park ballfields, and rehabilitation of the Fieldhouse and Cluett Hall at St. Paul’s. We have spent approximately $2,900,000 to date and there are more renovations to come during the 2018 and 2019 years. The new artificial multi-purpose field at Community Park will be completed in July, and that project will cost approximately $2,400,000.

For several years, the Village, through the Commission and at the Board level, has recognized that our facilities did not generate a level of revenue that facilities in other towns and villages were generating. It was decided that the fees we charge to use these facilities needed to be increased. Why? Because we have costs to renovate that must be paid back, we are trying to limit general tax increases and we are trying to utilize, when we can, principals that private businesses utilize to operate. Over several years we have increased these fees, in each case reviewing our costs to maintain these facilities, the fees charged by neighboring towns and villages and also the fees charged by private facilities such as Island Garden. We conducted market research to help us set rates. Many of us have children who participate in tournaments in other villages and towns, counties and states – we have direct experience with the fees charged in other venues outside the Village.

In the Strategic Plan we laid out a process and system for generating revenue to pay for the renovations. These fees were discussed in public many times and in private meetings with representatives of the various groups, including the not for profits. Some parties wanted all the costs to be absorbed as general costs of the Village and therefore added to the tax bills of homeowners. The Commission and the Board of Trustees chose a different system. In effect, we are utilizing a mixed system: some of the costs are borne by taxpayers generally, some are targeted end user fees ($15 per participant in soccer, lacrosse, baseball, football and performing arts in the last year) and a portion is to be paid by groups, whether private entities or not for profits, who want to rent our facilities. Approximately 85 percent of costs of these recently completed and future planned renovations are being paid by end users. Think about the Pool as an example, if you use it – you pay. If you do not – you do not pay.

Of course not everyone agreed with the assessment of fees – that is to be expected. The Andy Foundation (and other not for profits) has disputed the payment of the fees being charged to them. The Andy Foundation has utilized for several years the Fieldhouse at St. Paul’s for its “yard” sale.

Between 2007 and 2013, the Village charged the Andy Foundation between $1,900 and $1,400. In years 2014, 2015 and 2016, the Village charged the Andy Foundation the sum of only $450. These fees were well below any market rate. At the time, the Village, in being supportive of local groups, decided that it would charge local charities only 50 percent of direct Village costs.

For this year’s event, the Village originally requested a fee of $5,600 be paid. For the Andy Foundation, there is a setup day, the actual event day and then refuse removal. Village personnel are utilized to do the setup and breakdown. We cart away, at our cost, all the refuse and goods that are left behind. For a reference point, Island Garden charges $375 per hour for private rental for a three-court space. So for the same two-day event consumed time, we estimate that the Andy Foundation would have had to pay Island Garden approximately between $6,000 and $7,000. We have also been advised that Island Garden would not allow a two-day event.

The Village agreed to a lesser charge for 2017, charging a fee of $2,805. The Andy Foundation does not want to pay any fees. Given the tax cap limitations under state law, and our need to pay for the facility renovations under the Strategic Plan, we cannot continue to charge special or favoritism-based rates. Every time we make a special provision for a not for profit to utilize the Fieldhouse or one of our venues such as the playing fields at St. Paul’s that means that we are missing an opportunity for a full playing entity to rent the same facility, and also every tournament or special event means that residents cannot use the facility.

Further, the Andy Foundation has also questioned the rent paid by the Nursery School, which pays rent to the Village for its use of some of the cottages at the St Paul’s facility. The Nursery School rent was not increased this year, as it has been steadily paying increases of between 5 and 10 percent every year over the last 5 or so years. Currently, the Nursery School pays approximately $2,600 per month. Several years ago, the Board adopted the position, as with our other facilities, that we needed to charge more market driven rates for use of facilities. That included the Nursery School. At the time of this decision, the Village obtained a third party rental analysis for the Nursery School facilities, and this analysis formed part of the basis for increasing the rental fee (which was $1,000 for many years until 2012). Also considered was the fact that the Nursery School has spent over the years its own money (approximately $350,000) to renovate the premises, and its own money to pay all operating expenses – heat, electric, etc. This difference warrants attention. Unlike users of the Fieldhouse, the Nursery School pays its own operating costs and renovation costs. So users of the Fieldhouse need to pay, through user fees, a portion of the costs of operating and renovations.

This dispute is about protecting Village assets and taxpayers’ money. This is not an “anti-local charity” dispute. The Village, whether Commission members or Board of Trustees members, supports our local groups. We find them valuable to the community and applaud the people who started them, run them and also all the volunteers who help out. However, we are stewards of taxpayer assets. The not for profits who use our facilities were started years ago, and they raise more funds now than when they were started or even 3-4 years ago inclusive of our fees for usage – so we find it curious that a not for profit would claim that the increase in our fees would be the basis by the founders for shutting down the not for profit. If those who run the charity raised $45,000 five years ago and kept it going, and now raise $85,000, why is the imposition of a $5,000 fee an obstacle to continuing the charity?

And we cannot favor one charity over another – that is the law. That scenario would also, in our view, not be fair or right. You may want to support a particular charity and not another, and to have the Village give discounted rates to this charity and not another would violate that principal. In the extreme, there may be a charity that a majority of residents find reprehensible – yet they would be entitled to the same type of discounted rates. Alternatively, if a new charity comes along, shouldn’t it be treated on the same basis?

We submit for your consideration another relevant point in this conversation. Providing a discounted rate to not for profits would result in the other groups that are providing a portion of the funds for the Strategic Plan and ongoing to pay more. The money has to come from somewhere, and providing a discounted rate just shifts the costs to another group to make up the shortfall. So the group that has children playing soccer or baseball or lacrosse or in a dance program would be required to make up the shortfall.

Finally, we do intend on addressing the complaints made by the Andy Foundation about the cleanliness of bathrooms and the condition of the floor covering that was used to cover the new floor at the Fieldhouse. First, we are currently speaking to three companies to take over the cleaning of bathrooms at St Paul’s (indoors and out), the Pool and other parks. While our personnel strongly dispute that the requests for bathroom cleaning were ignored, it is of course unacceptable that bathrooms in any our facilities are not clean and kept clean. Longer term we expect to renovate many of the bathrooms at most of our facilities. They have not been renovated in decades, if ever. Second, it should be noted, the Fieldhouse is an athletic facility – not a convention center or exhibition hall. It was just renovated for sports usage and we have to protect the floor. Allowing events such as art shows or the Andy Foundation yard sale should be viewed as an exception and an accommodation. Regardless, we have also requested quotes on new easy to use floor coverings and expect to purchase a new covering system in the next 90 days (which, of course, involves another expense which, if we were running the Village on a pure business basis, would mean charging more).



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