DUNEDIN — Boaters who rent slips at the Dunedin Marina will pay 7% more starting Oct. 1, a smaller increase than the 10% a city rate study had called for.
City commissioners unanimously approved the increase. They credited a $3 million state appropriation for hurricane repairs with cutting it by 3 percentage points. Finance Director Les Tyler cautioned that the savings depend on FEMA fully reimbursing the city for replacing storm-damaged docks. So does a similar reduction the city hopes to make next year.
“As long as FEMA fully reimburses us, we know we have a really good plan,” Tyler said. “If they don’t fully reimburse us, we may have to look at adjusting the rates in the future, but right now we think it’s a good plan.”
The increase is the fourth in a series recommended by the city’s consultant, Raftelis, in a rate study the commission received Jan. 18, 2023. The study called for five 10% increases to keep the Marina Enterprise Fund financially self-sustaining.
The commission approved the first increase March 9, 2023, and it took effect April 1, 2023. Additional 10% increases followed Oct. 1, 2024, and Oct. 1, 2025. The study also recommended changes to other parts of the rate structure, and in July 2023 the commission set live-aboard and commercial surcharges at 50%, effective Aug. 1, 2023.
Tyler said the new revenue will cover the marina’s daily operating expenses, debt service and capital improvements while keeping its reserves healthy.
“Staff have forecasted the financial needs of the Marina Enterprise Fund, and we believe this 7% increase is necessary to keep the marina fund self-sustaining,” he said.
The state appropriation, for fiscal year 2026-27, will help pay for storm repairs to the marina’s Docks A and B. The city’s forecast assumes FEMA and the state will cover the full cost of replacing those docks with modern floating docks.
That is the risk, Tyler said. If FEMA does not approve paying the mitigation costs of floating docks, the marina fund would have to cover more than the forecast anticipates. The city would likely have to raise slip rates further in future years.
“This is a complex project,” Tyler said. “The scope of repairs may increase the cost of the project and may not all be eligible for FEMA reimbursement.”
Early city estimates put the cost of replacing Docks A and B at about $5 million. FEMA is expected to reimburse about 75% of that, or $3.75 million. The city also plans to replace the marina’s bulkhead for about $3.5 million and hopes FEMA will cover $2.625 million.
A third project would replace the hurricane-damaged fishing pier. It is expected to cost $2.3 million, and the city hopes for $1.725 million in FEMA funding. City staff said state and federal permitting agencies are holding up that project.
Commissioners praised staff for holding the increase down.
“Good job being able to reduce the 10% increase,” said Vice Mayor Robert Walker. He also asked staff for an update on the Marina Plan and the status of the marina’s facilities.
Commissioner Jeff Gow said, “It speaks volumes that we’re able to reduce the rates from 10 to 7.”
“I think this is wonderful news that we’re not having to go up 10%,” Commissioner Tom Dugard said. “Congratulations to everybody that got us here.” He added that some things still need to be worked out.
Commissioner Steve Sandbergen thanked staff for making the process smooth. He said a resident told him he couldn’t believe how much he gets at the marina for the price.