Community Government Health & Wellness

PenMet Parks considering non-resident surcharge

The PenMet Parks board will vote on a pricing policy next week that would allow it to assess a surcharge on non-residents and offer priority registration to in-district participants.

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Out-of-district participants in fee-based programs and services offered after April 1 would pay an additional 20%. They would have to wait a week after registration opens to sign up.

30% from out of district

Thirty percent of PenMet’s participants in 2022 came from outside the district’s boundaries, according to a fee and services assessment conducted by consultant BerryDunn. People who live outside the district don’t pay property taxes to support PenMet.

Seventeen percent came from Gig Harbor, which has its own parks and isn’t included in the PenMet district. The other 13% were from Key Peninsula and surrounding areas, said spokeswoman Zemorah Murray.

The district’s recreation services committee reviewed the pricing policy on Sept. 12. The PenMet board discussed it at a Sept. 19 study session. Commissioners asked how the 20% fee difference and weeklong priority were arrived at — through feedback from the recreation services committee — and agreed they were reasonable, according to meeting minutes.

A first reading on the pricing policy was held during the Oct. 3 commissioners meeting. The second reading and vote will be Oct. 17 at Arletta Schoolhouse.

PenMet youth programs are in hot demand.

“PenMet Parks recognizes that people living within the district boundaries support, through taxes, the district’s parks and recreation programs, services and facilities,” Murray wrote in a response to questions from Gig Harbor Now. “After evaluating data, including demographics, an analysis of PenMet Parks’ existing program utilization, utilization of taxpayer dollars and comparable agency practices, the fees and services assessment recommended the pricing policy include criteria for assessing a non-resident surcharge and guidelines for priority registration.”

Surcharges not uncommon

A BerryDunn review of comparable park districts — Bainbridge Island, Federal Way, Puyallup, Chehalem, Ore., Gurnee, Ill. and Lombard, Ill. — found five of six assess a surcharge for non-residents, who pay 15-25% more than residents. Three of the six give priority registration to residents for their summer camp programs.

If PenMet programs could accommodate everybody who wants to participate, there would be no need for priority registration. However, the BerryDunn study found that 82% of those served by the district are youths. Their programs “are first-class and in high demand.” And across 181 programs in 2022, PenMet placed 1,500 youths on waiting lists.

PenMet is unique in that it surrounds a city and gets participants from outside areas such as Key Peninsula and South Kitsap, said Board President Steve Nixon.

“So it’s something we’ve been talking about for a while, trying to figure out,” he said. “I didn’t want to see us do anything until we had good information and some of our own internal data as to how many people we have participating in programs in or out of the district.

“It’s one of those things where popular camps and sports and programs fill up fast. If you’re not logged in and waiting to hit the button, you’re not going to get a spot. So I think it’s fair for the folks that pay taxes into the district. That’s (tax revenue) the backbone of what we do.”

Many kids are placed on waiting lists for programs.

The fee and services study stated PenMet could increase its reach by 25% if it had the capacity to serve those placed on waiting lists. Commissioners during the Sept. 19 study session asked if there were ways to overcome the lists.

Director of Recreational Services Tracy Gallaway said they’re the result of limited building, field and gym space.

More space needed

“That is one of our goals for 2024, to look for expanding programs by using other buildings,” she said. “We just completed a facility inventory, and an initiative in 2024 is a utilization analysis for opportunities available for programs and identifying gaps.”

The community recreation center that’s under construction will improve space issues. PenMet is looking at other facilities in the community it might use, Nixon said.

PenMet Parks notified the city about the fees and services assessment study and shared the report earlier in the year, said City Administrator Katrina Knutson. On Wednesday, parks staff shared information regarding the proposed pricing policy with city staff.

Knutson said the city appreciates the programs and services PenMet Parks provides to the greater Gig Harbor community and looks forward to learning more about the proposed policy and its potential impacts on city residents.

About 30% of participants come from outside the district.

The city charges a non-resident rate for paddle craft storage at Ancich Waterfront Park.

There has long been talk of the city being incorporated into the PenMet district. It would require Gig Harbor residents to vote a tax increase on themselves, and isn’t imminent. However, PenMet could explore intermediate partnering such as an interlocal agreement or contract to provide services to the city, Nixon said.

“I’m anxious to see what kind of feedback we get on it,” Nixon said of the pricing policy. “I’m sure there’ll be some folks who won’t be happy, especially the ones who don’t get into what they want because they have to wait a week (to register). But I think that’s fair. It’s as fair as it can feel at this point.”

Also on Tuesday’s agenda will be adopting the update of the district’s 2018 Parks, Recreation and Open Space Plan to reflect changing community needs and priorities for parks and recreation services.