Establishing a lake Manawa state park user fee pilot program and providing for a future repeal

Description

Senate File 306 establishes a State Park User Fee Pilot Program in the Department of Natural Resources (DNR). The Program allows the DNR to charge nonresidents who visit Lake Manawa State Park or Waubonsie State Park the following fees:

• One-day entrance fee of $5 per vehicle.
• Annual pass fee of $40 for one vehicle and the option to buy a second vehicle pass for a fee of $15.

The Bill allows the Department to establish separate fees for residents and nonresidents related to camping and shelter rentals.

Background

Lake Manawa State Park is located near Council Bluffs, Iowa, and is approximately 10 minutes from Omaha, Nebraska. Waubonsie State Park is in southwest Iowa and is located near Nebraska and Missouri. Although Missouri does not charge a state park user fee, the state of Nebraska charges residents a $6 one-day entrance fee to a state park, and nonresidents are charged $8. The annual fee is $30 for residents and $45 for nonresidents. A duplicate or second vehicle pass is $15 for residents and $22.50 for nonresidents. Since Iowa does not charge state park entrance fees, numerous Nebraska residents visit Lake Manawa State Park.

Assumptions

Lake Manawa State Park:

• There will be an estimated 720,000 nonresident visitors per year at Lake Manawa State Park. There will be four persons in each vehicle, so there will be 180,000 nonresident vehicles that enter the park.
• It is estimated that 60.0%, or 108,000 vehicles, will be repeat customers who visit 25 times per year. This equals 4,320 unique nonresident vehicles (108,000 vehicles/25 visits).
• It is estimated there will be a 30.0% decrease in attendance due to the fee, which reduces the number of unique vehicles of nonresidents who will purchase an annual pass to 3,024 in year one.
• There will be a 5.0% increase in attendance in year two, with annual passes sold for 3,175 vehicles of nonresidents.
• Up to 72,000 nonresidents will purchase a daily pass for their vehicles. It is estimated the first year will have a 30.0% decrease in attendance due to the fee, which will reduce the number of vehicles that enter the park to 50,400 in year one. In year two, the number of daily passes sold will increase by 5.0% to 52,920.

Waubonsie State Park:

• There will be 79,000 nonresident visitors per year at Waubonsie State Park. There will be four persons in each vehicle, so there will be 20,000 nonresident vehicles that enter the park.
• It is estimated that 60.0%, or 12,000 vehicles, are repeat customers who visit 25 times per year. This equals 470 unique nonresident vehicles (12,000 vehicles/25 visits).
• It is estimated there will be a 30.0% decrease in attendance due to the fee, which reduces the number of unique vehicles of nonresidents who will purchase an annual pass to 330 in year one.
• There will be a 5.0% increase in attendance in year two, with annual passes sold for 350 vehicles of nonresidents.
• Up to 7,900 nonresidents will purchase a daily pass for their vehicles. It is estimated the first year will have a 30.0% decrease in attendance due to the fee, which will reduce the number of vehicles that enter the park to 5,500 in year one. In year two, the number of daily passes sold will increase by 5.0% to 5,800.

The DNR estimates the following fees will be collected as summarized in Table 1: Both parks will require four self-service kiosk machines that will not need to be staffed. The estimated cost for the eight machines is $120,000. Other operating expenditures are detailed in Table 2:

Fiscal Impact

The estimated fiscal impact of SF 306 is summarized in Table 3:

Fees FY 2020 FY 2021 Annual Pass Fee 134,000$ 141,000$ Daily Pass Fee 280,000 294,000 Total Fees 414,000$ 435,000$ Table 1 – State Park User Fee Pilot Program Fees Collected Expenditures FY 2020 FY 2021 Purchase of Eight Kiosk Machines 120,000$ $ 0 Staff — Enforcement and Administration 54,000 57,000 Support and Supplies for Operations 20,000 21,000 Point of Sale Equipment for Pay Stations 25,000 26,000 Total Expenditures 219,000$ 104,000$ Table 2 – State Park User Fee Pilot Program Expenditures Description FY 2020 FY 2021 Revenue 414,000$ 435,000$ Expenditures 219,000 104,000 Total Net Revenue 195,000$ 331,000$ Table 3 – State Park User Fee Pilot Program Fiscal Impact

Source

• Department of Natural Resources