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Delaware Division of Parks and Recreation

Fee Proposal Overview

Thank you for your interest in the fee proposal for Delaware State Parks. This is a very brief summary of the business aspects of
managing the parks, including the opportunities, challenges and barriers the Division faces as a self-funded model of operation.

Self-Funded Model

The Division is primarily self-funded (65%), which is unique within state government. The current fee
structure was established in 1971. The daily entrance fee at that time was $1 per vehicle; 43 years later, the
entrance fee is $3 for a Delaware resident. Adjusting for inflation, the cost for entering a park has declined
dramatically and does not provide adequate funding for the state park system.

Challenges

Being self-funded requires the Division to project and manage a budget of fixed expenses with a revenue
stream that fluctuates annually due to many variables outside our control, including:
Weather (i.e. rainy summer season, hurricanes, excessive heat, etc.)
High fuel costs that impact annual visitation
Economic downturns that affect the amount of discretionary money available for vacationers
Maximized revenue generating capacity within the current fee structure
Carrying capacity limitations at the largest revenue generating management units such as ocean parks

Operating Costs

Annual increases in operating expenses and unfunded mandates are covered through the existing fee structure
and revenue. Since entrance fees were last increased 10 years ago, there have been dramatic increases in
operating expenses. Several recent key increases include:
Minimum wage increase compliance of $1.00/hr. over a two-year period ( June 2014 and June 2015 Senate
Bill 6) = $341,586.10
Capital improvement project loans: annual debt service payment for Cape Henlopen and Lums Pond
infrastructure upgrades ( July 2014 and Summer 2015) = $282,200.80
Aggressive competition for seasonal staffing, particularly lifeguards at the ocean beach resorts. To ensure
the state park system is able to recruit and retain qualified employees, a salary-leveling increase was
implemented for ocean lifeguards ( June 2014) = $47,545.00
Conversion of 47 high-mileage, fully-depreciated vehicles (average 13 years old and 90,944 miles) to
annual fleet leases = $230,900.00

Fiscal Management

Being self-funded requires the Division to routinely hold critical positions vacant and implement self-imposed
operating budget reductions throughout the fiscal year. The state park system currently operates with 16%
fewer full-time employees than seven years ago (165 in FY 2014, compared to 197 in FY 2009).
Routine cost containment measures ensure that park expenditures do not exceed the amount of revenue
generated, and that adequate funding is available during the reduced revenue-generating months of the
year (October through March). The Division maximizes every opportunity to market and promote state park
programs and services in addition to the parks themselves, and is a recognized leader in state government with
the development of partnerships, Friends organizations, and the use of volunteers.
However, even the Divisions entrepreneurial business approach does not provide funding ($100M) for
deferred maintenance for aging infrastructure, most of which was built in the 1960s and 1970s, or for capital
improvement projects (utilities, surf fishing pier, roads and parking lots) throughout the park system.

Fee Increase Revenue

The additional revenue generated would address day-to-day operational expenses, in addition to providing
critical funding for deferred maintenance on building and utilities, replacement of aging equipment and to
sustain the park system into the future.

We want to hear from you!

After reviewing this document, please go to our online comment form to give us your thoughts about the
Delaware State Parks fee proposal.

TheVal
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