Cost Recovery
Recover costs and maximize revenue for sustainable, thriving recreation programs
Improve Cost Recovery for Parks and Recreation
Without centralized tools to track financial performance and hone pricing, departments risk lost revenue, administrative inefficiencies, and budget pushback. CivicPlus® Cost Recovery software provides real-time data and reporting tools to build sustainable programs—and executive and community support.
- 25% of operating costs on average are recovered through revenue.
- 81.3% of surveyed parks took action to reduce operating costs in 2024.
- 1 in 3 departments recover less than 40% of operating costs through revenue.
Explore Cost Recovery Software
Make the most of your resources and build self-sustaining programs with rec-specific expertise, automated workflows, and tools that connect all the dots between program participation, pricing, revenue, and performance.
Product Features
Make Informed Cost Recovery Decisions
Real-time reporting tools provide visibility into program fees, expenses, and other financials let you track performance, predict financial outcomes, and build defensible budgets.
Drive Consistent and Fair Revenue
With automated pricing models and cost recovery tools, you can analyze program demand, performance, and value to identify opportunities for pricing adjustments that help you meet financial goals.
Boost Efficiencies and Free Up Staff Time
Remote access, seamless collaboration, and automated workflows for cost recovery, pricing, and reporting allow staff to focus on more proactive, strategic work.
Inspire Strategic Buy-In
Expert guidance helps you develop and effectively communicate transparent, data-backed pricing strategies that meet residents’ expectations for programs, costs, and budget stewardship.
Power Long-Term Budget Planning and Program Sustainability
Monitor and predict financial health, budget risks, and future revenue potential, so you can proactively manage resources, adapt pricing, and jump on growth opportunities.
Key Software Features
- Cost Recovery Analysis: Use software to generate clear recovery rate comparisons by program.
- Price Modeling: Model price changes to guide planning such as pricing, community expectations, and affordability goals.
- Automation First: Dynamically adjust pricing based on demand, so you can recover costs while delivering the most value.
Frequently Asked Questions About Cost Recovery
What is an example of cost recovery?
Cost recovery involves using your organization’s historical data to determine current and projected:
- cost recovery for every service provided
- actual expense for every service provided; and
- actual fees and projected fees for every service provided. This work is most easily accomplished with purpose-built software, such as CivicPlus Cost Recovery.
What does “under cost recovery” mean?
“Under cost recovery” essentially means that you are subsidizing the service or running at loss. For example, if the expense of a service you offer costs $100.00 per person and your fee is $50.00, then you are at a 50% cost recovery goal, or under 100%.
What does cost recovery software do?
Cost recovery software, such as CivicPlus Cost Recovery, provides automated workflows and purpose-built tools for pricing updates, revenue tracking, and financial reporting. It’s designed to help optimize revenue, streamline processes, and build sustainable, affordable programs. Cost recovery software empowers your department to make data-driven decisions, reduce administrative overhead, and create transparent pricing strategies to foster community trust while maintaining consistent revenue to drive long-term sustainability.
What is the cost recovery method?
The cost recovery method, as used by CivicPlus, involves understanding the “full cost” of offering a service and then applying, if warranted, a cost recovery goal. This encompasses direct expenses (including facility expenses) as well as indirect expenses (including administrative expenses).
What is the cost recovery rate?
The cost recovery rate can mean different things. One way of thinking about cost recovery rates is to think about your cost recovery goals:
- Community goals: Does this service or program connect to an initiative the community is focusing on?
- Subsidizing vs. Revenue goals: Where does the program fall on the spectrum between subsidizing services and capturing revenue from them?
For example, imagine that serving underprivileged youth and families is a critical community priority, specifically including offering a youth swim class. A revenue-based goal might tell the agency to price the youth swim class at 120% cost recovery rate. However, the community may choose to price the swim class at the cost of service or below, therefore subsidizing the class.
CivicPlus can help local governments weigh these different factors and determine—in real-time—how they can most effectively and efficiently allocate financial resources and set the cost recovery rates that match their cost recovery goals.