On Monday, the Philadelphia Parks Alliance released a report assessing the financial benefits of Philadelphia's park system. You can download the entire report from the Parks Alliance website by clicking here, but the basic message of the study is that Fairmount Park is a major municipal asset. According to the study, our park system is worth more than $2 billion.
The study broke down the benefits into two categories: direct and indirect. The city collects an additional $23 million every year in property taxes because of added value due to park proximity. Another $5 million goes into city coffers thanks to tax dollars generated from tourism. The report also estimates another $7 million in municipal savings from storm-water management, air pollution mitigation, and providing space for community activities. The indirect costs include an additional $729 million in wealth for those who own property close to the park system and $1.1 billion is savings due to health, recreation, and other benefits gained by using the system.
Estimating the financial benefits of parks and recreation is an interesting approach. Traditionally, conservation of natural resources is thought of as a altruistic enterprise. The report from the Parks Alliance shows that there are monetary benefits to planting trees. Who knew? This report should be a catalyst for rethinking how city government assess other municipal assets like libraries and recreation centers. For example, how much money does the city save by providing after school programs to youth who otherwise might be getting into trouble and filling up our prison system?
Of course, there is a political context behind the report from the Parks Alliance. City Council held hearings today about a bill that would combine Fairmount Park and the Department of Recreation into a single entity. This proposal has long been opposed by park advocates but has the support of Mayor Michael Nutter. I personally think combining the two makes a lot of sense (and is the approach of many other cities) because it can make the system more efficient by combining scarce resources.
Mayor Nutter's budget included a $2.5 million increase for Fairmount Park and additional money for the Recreation Department to maintain park facilities. This report seems to indicate that those dollars are a worthwhile investment that is likely to yield a healthy return for Philadelphia.