By Mike Lednovich
The Marina Advisory Board will discuss rates at its May 22 meeting. Meanwhile, the board asked Oasis Marina what rate schedule would make the operation self-supporting.
To accomplish that, Oasis responded, the rate for annual slip holders would have to be $39 per foot, not the current $25 per foot. And weekly slip rates would have to be $21 per foot, not the current $15. That would let the marina break even, according to the marina management company. Currently, the marina requires support from the city’s operating fund.
The forecast rates would pay for all marina expenses, including insurance, debt service payment, and bi-annual dredging.
The accomanying table assumes revenue derived from 71% transient boaters and 29% annual slip holders. All rates are per foot.
The calculations, provided by Oasis General Manager Cathy Chapman, are based on marina debt and expenses and do not necessarily reflect what the market will bear.
There are no current plans to raise the rates.
Mike thank you for your analysis.
Although the break-even analysis is interesting what is more critical is whether we are maximize the amount of revenue received by the city and whether we are overcharging or undercharging for slips at the current rate.
To determine what the proper rate should be is not difficult. If you currently have 100% of the slips filled and you have a waiting list or people who would want to use the slips then obviously you are under charging. However if you have major vacancies then you are overcharging. Do you have any information as to the availability of slips now and for the demand if there is one above our current capacity? Thanks