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. e Center Rental Rate Increase, pg. 3 4. Summary and Recommendations Based on the estimated cost of operations outlined above in Section 2 and on the survey results outlined in Section 3, it is apparent that our rates for center rental need to be adjusted to reflect our increased cost of operation and to be more equitable compared to other facilities in the area. We propose the following rental rates for our centers for consideration: . $15 per hour for non-profit organizations, with a $200 deposit; minimum 2 hour rental · $25 per hour for all other rentals, with a $200 deposit; minimum 2 hour rental. Positive Impact: This rate puts us slightly lower than the average for rentals of comparable centers in the area. These rental rates would bring us close to recouping our costs for center rental for non-profit rentals, and somewhat more for other rentals, which would make up the difference. These rates should be sufficient to cover costs for the foreseeable future and assure a small profit margin for future cost increases should they materialize. Negative Impact: This level of increase may result in a reduction in demand for the use of our centers. We may also get some negative publicity, particularly from the non-profit organizations that use our facilities. Staff recommends that the proposed rates be adopted as the effective rate for rental of the City's recreation centers, beginning on January 1, 2001. Although it will not cover our costs of operation in every case, it will cover costs in most cases. It also allows room for future cost growth. over the next several years and should serve the City's interests well for the foreseeable future. As is the case for every rate increase, there will be some negative feedback from our customers, but certainly the rising cost of operation and the fact that we have held prices static for the last 10 years speaks for itself. If we are to charge higher rates, the City must assure customers the best possible service for their dollar when compared to the service of other cities in the area. We believe that we do provide an extra level of service to our customers and will continue to offer the best available rental facilities for the citizens of La Porte and others to enjoy.