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Utah state parks overcharged for public amenities, fiscal analyst’s report finds

Utah’s Office of the Legislative Fiscal Analyst found DNR has charged more than state Legislature allows it to

The Utah agency that oversees state parks and natural resources has been overcharging the public to use them, a government review has found.

The Utah Division of Natural Resources has been posting fees outside of what the Utah Legislature allows it to do, said Ivan Djambov, an analyst with Utah’s Office of the Legislative Fiscal Analyst, who presented his office’s findings Tuesday to the Legislature’s Executive Appropriations Committee.

And by overcharging, the report found, some people who might be able to afford the use of public amenities at state-regulated costs could be priced out.

In some instances, Djambov said, DNR was charging higher fees than they should have — while in other cases, they were charging fees that were never supposed to exist.

“Both of those are violations of the Budgetary Procedures Act,” Djambov said.

Scott Strong, the director of the Utah Division of State Parks, told lawmakers that the agency has made several changes that — because of the timing of the report — were not included in the report.

“We’re committed to following the law,” he said. “I think we can do a lot better job at itemizing our fees.”

Djambov, in one example, showed how the DNR is authorized to charge Utah residents up to $200, and nonresidents $400, per night to stay in cottages in state parks.

At Sand Hollow State Park east of St. George, though, the DNR was charging everyone, Utahns and nonresidents alike, $500 per night — and required a two-night stay.

“We brought these issues to the division leadership, but they stated that they think that their charges are in line with the approved fees,” Djambov said.

He quoted statements he had received from DNR leadership, who said they believed fee discrepancies were due to things like entrance fees, amenities or taxes being included in the cost. Even so, he reported DNR leaders conceded that about $145 of the total nightly cost was an overcharge.

“We believe that the overcharge is closer to $300 per transaction,” Djambov said.

The division, Djambov said, told him and his team that $100 of their total charge was meant to give guests access to rental kayaks, though that never happened.

The division also told him that about $54 of the charge is for taxes, but he pointed out how the reservation website — which was changed before he presented the review — stated “displayed rates do not reflect discounts, fees, or taxes.” It was updated to exclude the word “taxes.”

As of Wednesday, the state park reservation website had been changed to show Sand Hollow’s cottage rentals cost $200 per night. Other state parks with cottages, however, still had listings that exceeded the limit.

Djambov also showed differences between what DNR is authorized to charge and what it is charging for things like group day-use areas or campsites. He said portions of the fees were explained as, among other things, extra parking — but Djambov questioned why parties weren’t given the option to not include such add-ons if they won’t need them.

He also pointed out several fees the Legislature didn’t authorize DNR to charge, including a $4,000-per-event fee for the Hailstone Event Center at Jordanelle Reservoir, a $250 beach pavilion fee, a $25 extra vehicle fee and a $14 golf spectator fee.

And, while DNR is overcharging or charging unauthorized fees in some areas, Djamkov said it’s charging significantly less than it is authorized to for long-term boat and R.V. storage at Bear Lake, even with extremely lengthy wait lists.

“We notified the division leadership of these issues in July, but as of Nov. 15, only a few of these things have been resolved,” he said. “Charging the public higher fees not only undermines legislative authority, but also could make these facilities less affordable to Utah residents.”

Among other recommendations, the FLA report suggested that overcharged fees be transferred into the state’s general fund, and that the Legislature create penalties to dissuade agencies who might overcharge the public.

The Executive Appropriations Committee voted to adopt the recommendations.