EPRD Needs Better Cost Allocation Methods

• The table and graph below show the 2020 budget by category.

• Notice how some programs look profitable, whereas, others do not.

  • Example: Athletics is "profitable" and returns $1.79 of revenue for every $1.00 of expense.

  • Example: BuchananAquatics is "not profitable" and returns $0.30 or revenue for every $1 of expense.

• These results are misleading because many costs are buried in other categories such as "Park Operations" and "G&A."

• Better cost allocation is needed in order to assess the cost effectiveness of EPRD programs.

• Cost effectiveness is a key metric--but certainly not the only metric--to use when deciding where to invest scarce funds.