ITEM TITLE:
Valdez Harbor Financial Assessment and Revenue Strategy Update
SUBMITTED BY: Sarah Von Bargen, Harbormaster
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
Informational presentation and discussion: direction to staff regarding rate adjustments, revenue diversification, and long-term financial sustainability planning.
SUMMARY STATEMENT:
Harbor staff will present an overview of Valdez Harbor’s financial performance from 2019-2025, highlighting ongoing challenges in maintaining self-sustaining operations amid increasing reliance on the Raw Fish Tax and Shared Fisheries Business Tax revenues to support day-to-day operations, despite these funds being intended for major maintenance, replacement and capital improvement projects.
The presentation will compare total harbor revenues with and without fish tax revenues, illustrating the structural gap between operating income and operating expenses and reinforcing the need for proactive financial strategies.
Presentation Outline:
• Historical revenue trends from 2019-2025
• The financial impact of removing fish tax revenues from operating budgets
• The importance of continued moorage rate adjustments, including incentivizing annual contract
• Opportunities to diversify revenue through new or expanded services:
o Vending machines (ice, bagged and flaked) and (beverage/snack)
o Metered water and pressure washer rentals
o Gear storage and upland leases
o Additional laundry facilities
o Tiny home houseboats
o Potential operation of City campgrounds (estimated ~$130,000 annually)
• The value of increased marketing, trade show participation, and promotion of harbor services statewide
This presentation is informational only. No immediate fiscal action is requested at this time. However, future recommendations related to rate adjustments, new revenue services, or operational changes will be brought forward for Commission and Council consideration as appropriate.
Attached for additional background and current information are the 2026 forecasted revenues and expenses, annual report of primary revenue sources from 2008-2025 and the current rate comparison between Valdez and other Alaska harbors.