Commentary: Want to Cut Taxes? Look at Marina Subsidy

By Chip Ross

City Commissioner

Citizens want to cut taxes, but the subsidy of the Marina continues to consume approximately 2.2% of the general budget.

Currently the city taxpayers subsidize the city-owned Marina approximately $700,000 per year – approximately 2.2 % of the general budget. That subsidy is likely to increase in the coming years.

At present there are slips available for approximately 79 boats – 75% for transient slip holders and 25% for long-term slip holders. Transient slip holders pay significantly more than long-term slip holders.

The long-term slip holders consist of 24 commercial slip holders, 15 non-city resident slip holders and two city resident slip holders. Each commercial and recreational slip holder is currently subsidized approximately $3,360 per year – the difference between what it costs to operate the marina versus what the slip holders pay.

More than 80% of the commercial businesses’ customers are tourists. Without a sizable number of tourists, those businesses would cease to exist.

The capital needed for the Marina over the next five years will likely exceed 5 million dollars. Approximately $1 million will be needed to demolish Brett’s, $750,000 for new bathrooms, $400,000 to replace the aging boardwalk, $2-3 million to replace Brett’s with an open-air deck, and $400,000 to move the fuel lines when Brett’s is demolished.

The Centre Street Resturant Group [Brett’s] is currently demanding the city pay in excess of $600,000, for interruption of their business. No rent has been paid to the city for over a year. The lease ends in December 2025.

The Marina’s current attenuator insurance policy exceeds $500,000 per year. This will likely continue to increase.

The cost of dredging is currently over $900,000 per year. This will also likely increase. The Florida Inland Navigation District currently pays about a third of that cost. Whether that will continue is uncertain.

The operator wanted to increase the slip fees of both transient and annual slip holder fees to help cover costs. The Marina Advisory Board members and slip holders objected to the amount of the increases. The city commission, by a 4-1 vote, refused to raise the rates by the amount requested by the operator.

The current debt payment is about $700,000 per year. The debt will be paid off in 6 years.

Unless something changes, the Marina will require more than a million dollar a year subsidy, or approximately 3% of the city budget, for the near future.

The Marina Advisory Board is meeting at 5 p.m. on April 22, 2024 at City Hall to “workshop” this issue. Public attendance and participation is encouraged.