STAFF REPORT

Operations Committee, October 2, 2008

Scholarship Donation Program (PR09-13)
Consideration of PRCR Scholarship Program to be administered by CCA, Inc., funds raised through PRCR Advisory Board activities, and the appropriation of funds to initiate the scholarship account

Speaker:  Ms. Mary Henderson
 

From:  Mary G. Henderson, Director, PRCR
Prepared by:  Helen Stanfield, Recreation Projects Coordinator
Approved by:  William B. Coleman, Jr., Town Manager
Approved by:  Benjamin T. Shivar, Assistant Town Manager

 

Background

The PRCR Fees and Charges Policy provides for a Scholarship Program to ensure that Cary residents are not limited from participating in recreation programs due to the lack of ability to pay the program fee.  This represents a core philosophy that recognizes the quality of life benefits of recreation programs and the commitment to provide access to programs for all residents.

 

In 2007, The PRCR Advisory Board, confirming the importance of the Scholarship Program, established the enhancement of the Scholarship Program as an annual goal and continued the goal into 2008.  PRCR Advisory Board member, Sal Cammarata spearheads this initiative.  The intention is to establish funds through solicitation and fund-raising activities that cover the costs of the scholarship needs each year.  Over time, the Board intends to raise enough funds to establish an endowment for the Scholarship Program.

 

Existing Program

There are two issues related to the Scholarship Program to be addressed: 1) administering the program, and 2) funding the program.

 

Currently, the PRCR staff administers the program, including making decisions regarding the determination of scholarship awards.  The policy provides that residents must be able to substantiate proof of financial need to the PRCR Director or designee.  There are three options for consideration in the PRCR Scholarship Program:  1) scholarships may be awarded for full costs and all fees waived; 2) scholarships may be awarded with a reduction in fees with the citizen paying a portion and the remaining balance paid from the Scholarship fund; or, 3) a payment plan may be agreed upon between the citizen and the PRCR Department may be implemented.

 

Currently when scholarships are approved, either funds are transferred from the existing Scholarship Donation fund to cover the fees or, if there are not donations funds available, the fees are simply waived.  Each year there is a growing number of families that request consideration for reduced or waived fees.  In 2006, there were credits of $4,600 issued to participants, $8,300 in 2007 and since January 2008 the amount is up to $14,200.  A Scholarship Donation Account has been established to accept donations from program participants and others wanting to contribute to the scholarship program.  This provides an opportunity to participate for those with financial hardships.  The increased number of requests not only requires increased staff time to provide information and the appropriate level of customer service for each request, but also puts a greater level of decision making on determining financial need.

 

Recommended Program Changes

Since Christian Community in Action (CCA) currently administers the Town’s Oasis program, CCA was identified as a potential solution for conducting screenings and financial needs assessments for staff.  CCA is willing to work with the PRCR Scholarship Program very similar to the way CCA works with the Town’s Oasis program.  At no cost to the Town, as a social service organization, CCA will ensure Cary resident status of those seeking scholarships, complete a financial needs assessment, and notify PRCR staff of applicant eligibility.  This removes the determination of financial need from staff to those with a greater level of expertise.  CCA will provide a monthly summary of activity outlining full or partial scholarships and payment plans.

 

Due to the increased amount of scholarship needs, the Finance Department staff recommends that the Town appropriate funds specifically to cover the anticipated scholarship needs.  This provides for improved accounting of funds.  It is the goal of the PRCR Advisory Board to build funding through donations that will replace the appropriation as well as provide future funding for the Scholarship Program.

 

PRCR Advisory Board Recommendation

At the August 2008 meeting the Board unanimously approved the recommendation to contract with CCA, Inc., to administer the Scholarship program and to manage the fund through the Town.

 

Additional funding of $30,000 for PRCR Scholarships is necessary to ensure that the account is funded through FY09 with the intention of replacing these dollars with donations.

 

Staff Recommendation:  Staff recommends that staff be authorized to negotiate final contract with CCA, Inc., based on the general terms as described, and an appropriation of $30,000 from the General Fund fund balance for PRCR Scholarships.