ITEM TITLE:
Discussion Item: Harbor Budget Trajectory
SUBMITTED BY: Sarah Von Bargen, Harbormaster
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
Staff is asking the Ports and Harbor Commission to review and discuss the current harbor budget, consider possible new revenue streams and identify areas for operational cost savings.
SUMMARY STATEMENT:
This agenda item is brought before the entire Commission to continue review of the harbor budget that was previously discussed by a small group of Commissioners on March 7, 2025. The focus of the discussion was to focus on possible new revenue streams and possible ways to decrease operational costs, without decreasing services if possible. Specific areas of discussion were the following:
• Tideland Lease Management
o Consideration of the Harbor Department taking over management of the tideland leases instead of Community Development
o Coordination with the City Clerk and City Manager to examine feasibility of taking over lease management
o Estimated additional revenue of $235,000 annually, based on Finance Department projections
• Short-Term Rental Opportunities
o Exploration of short-term rental spaces for commercial or recreational purposes
o Identification of viable locations within the existing harbors
o Discussion of potential fee structure and projected revenue
• Moorage Rates
o No increase to moorage rates at this time
§ General Fund to subsidize offset in revenue vs. expenses
o The previous Commission discussion expressed consensus against raising moorage rates
• Waterfront Lease Funding
o Review of current lease structures
o Potential for increased revenue through renegotiation or expanded lease opportunities
• Other Revenue Opportunities and Cost Savings
o Operational efficiencies or cost-cutting measures
o Grants or other funding sources that may support harbor operations
Staff is looking for feedback on the aforementioned items as well as any additional recommendations of alternative funding sources and further exploration or implementation of discussed opportunities. The outcome of this work session will next be presented in a joint work session with the City Council.