IBO: N.Y. City Athletic Fee Hikes Backfired

Fee increases for city operated athletic facilities produced far less revenue than anticipated, according to the New York City Independent Budget Office.

Mayor Michael Bloomberg expected a round of fee hikes in November 2010 to generate $6.3 million in additional revenue for fiscal 2012, but “in fact, revenue grew by just $1.1 million—a fraction of what had been expected,” the IBO said Thursday in a fiscal brief.

The fees covered tennis on city courts, memberships at city run recreation centers, and permits for using city ballfields. It marked the second set of increases since 2002.

The failure to achieve the expected revenue gains was the result of a greater-than-projected falloff in the number of permits sold for tennis and memberships for recreation centers following the price rise, according to the IBO.

The watchdog agency examined data on the sale of permits and memberships before and after the latest fee increases, along with revenue from related sources such as reservation fees, at the affected athletic facilities.

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New York
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