Wednesday, January 7, 2009

Norfolk County Proposed Marina Operations

The Corporation of Norfolk County

Normally, I finish each year by renewing my slip, paying my deposit for the next boating season. I have not done this yet, because I have not received the renewal forms. I have made inquiries to why, and have learned (through my efforts, not proactive measures by the Marina), that the reason I have not got my renewal forms, is because the Marina Board resigned. The County Government is going to run the Marina and is proposing a 20% increase for dock fees and a 5% increase for electricity. I have also learned that there is a town hall type meeting scheduled for Jan.13/09. My facts may be wrong, but I have not been given the courtesy of the Marina informing me of the correct facts even though I have been a customer for 10 years. If it were run like a proper business, a letter of intent would have been sent even if it were to say, we are reviewing our policies and will get back to you later.

I suppose the County Government strategy is to delay informing its customers of the proposed increased in the hopes of blindsiding boat owners, or perhaps they just not up to the task of running the marina? We recently had a large increase, is another one warranted due to the current economic circumstances? The members of the Port Dover Harbor Marina are primarily middle class families that struggle with the same issues as everyone else, rising gas prices, taxes etc, and have limited resources to dedicate to our boating activity. The Marina Board would know this if they studied their fuel sales for the last few years. The increase in fuel cost has limited the usage of boats. It appears the County Government is looking for more money, without taxing its voters. Well guess what? I vote with my wallet, in the stores and restaurants around Port Dover, and I have a limited amount of resources, if I didn’t then I would have a boat on Georgian Bay.

Suppose you increase the rates 20% and lose 20% of the boats,

Your net result:

  • to the Marina is loss of revenue of 4%,
  • but your costs don’t decrease, the grass still needs to be cut,
  • the community impact is far greater.

That is:

  • 20% less people at the Marina,
  • 20% less work for Bridge Marine, Dovercraft etc.
  • 20% less marina customers at the Restaurants, drinking establishments, theatre, shops, and the farmers market.

I would suggest that amount is far greater, even more because hardly a weekend goes by that we don’t have guests. The guests at times book hotel rooms, shop in the craft stores, and eat in the restaurants. Most other boaters have visitors as well.

For those that do stay, they have 20% less money to spend, perhaps they bring their food, don’t go out to see live entertainment, so it becomes a slippery slope. Businesses have fewer customers, need fewer employees, and it recesses from there. Is this the course the County Government wants to chart?

It is estimated that a dollar gets multiplied (some say up to 8 times in a community) so the loss to business could be much more substantial when you consider the three fold decrease:

  • less boats,
  • less visitors to boats,
  • less disposable income for those that stay.

A business needs to balance several items to maximize the net over all benefit to the shareholders, and this is a business. The County Government’s plan has not considered the net effect to the loss of revenue to the businesses and residents (the shareholders) of the town of Port Dover, they have missed the big picture.

So here is the big picture. The Marina is a cash cow which brings money into the community. The County Government needs to balance how they want to milk the cow, because their current course of action will kill the cow, and dead cows don’t give milk.

Geoff Sanders

Dock 1 of the PDHM

No comments: