ITEM TITLE:
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2028 Cruise Ship Head Fee Increase
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SUBMITTED BY: Andrew Doherty – Port Operations MGR
FISCAL NOTES:
Expenditure Required: No direct expenditure is anticipated. Administrative costs associated with implementing and collecting the revised fee would be absorbed within the existing Ports and Harbors operating budget.
Unencumbered Balance: N/A
Funding Source: No expenditure funding is required. Revenue generated by the fee would be deposited into the applicable Ports and Harbors revenue account
RECOMMENDATION:
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Approve an increase in the City of Valdez cruise ship head fee from $3.00 to $6.00 - $10.00 per passenger, effective January 1, 2028, and direct staff to prepare the necessary amendment to the port tariff 100-26.
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SUMMARY STATEMENT:
The City of Valdez currently assesses a cruise ship head fee of $3.00 for each cruise ship passenger visiting Valdez. During the 2026 cruise season, the City collected head fees on 36,184 passengers, generating approximately $108,552 in revenue.
Based on an anticipated annual passenger count of approximately 35,000 to 40,000 passengers, the current $3.00 fee generates between $105,000 and $120,000 annually. Increasing the fee would generate the following estimated revenue.
Head Fee
Revenue at 35,000 Passengers
Revenue at 40,000 Passengers
Annual Increase Over Current Fee
Current - $3.00
$105,000
$120,000
-
$6.00
$210,000
$240,000
$105,000-$120,000
$7.00
$245,000
$280,000
$140,000-$160,000
$8.00
$280,000
$320,000
$175,000-$200,000
$9.00
$315,000
$360,000
$210,000-$240,000
$10.00
$350,000
$400,000
$245,000-$280,000
Using the actual 2026 passenger count of 36,184, the estimated revenue under each option would be:
Head Fee
Estimated Revenue
Increase Over Current Revenue
Current - $3.00
$108,552
-
$6.00
$217,104
$108,552
$7.00
$253,288
$144,736
$8.00
$289,472
$180,920
$9.00
$325,656
$217,104
$10.00
$361,840
$253,288
Alas...
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