Proposed revenues for Fiscal Year 2021 is slightly up, while total expenses are down.
LOS ANGELES—The Port of Los Angeles Board of Harbor Commissioners approved the annual budget for the operation of Cabrillo Way Marina by Westrec Marina Management, May 21. Westrec proposed a revenue of $6,527,055 for Fiscal Year 2021, a 0.5 percent increase from $6,496,578 for Fiscal Year 2020.
The proposed total expenses for Fiscal Year 2021 was $3,353,687, a 9.9 percent decrease from the approved expenses for Fiscal Year 2020 ($3,721,270). Expenses dropped, according to port district staff, “due to a majority of periodic maintenance and repairs being made during FY 2020, including lighting and materials for slip maintenance.”
Port district staff added the proposed net income for Fiscal Year 2021 was set at $3,173,368, a 14.3 percent increase over the previous year ($2,775,308).
“The resulting FY 2021 proposed net profit margin of 48.6 percent represents a 5.9 percent increase relative to the adjusted FY 2020 approved margin of 42.7 percent due to a combination of increased projected revenues and lower projected expenses,” port district staff stated.
Cabrillo Way Marina also experienced an increase in west slip occupancy – 468 to 526 – during Fiscal year 2019. The occupancy rate, accordingly, was 76 percent.
“Although this increase was less than the 577 projected, the 76.0 percent occupancy rate is consistent with the local market within the Port of Los Angeles marina, which ranges from 64 – 98 percent occupancy,” port district staff stated.
The commission will be paying attention to how Covid-19 affects all of the marinas within the Port of Los Angeles.
“With the recent Covid-19 pandemic affecting all marina operators and operations, the city of Los Angeles Harbor Department … will continue to monitor the situation,” port district staff stated. “If the need arises, staff may make mid-year adjustments to the FY 2021 Westrec budget, depending on an evolving situation that may affect budget items that cannot be quantified at this time.”
Annual rent revenues, according to port district staff, includes wet slip rent, dry boat storage rent, guest slip fees, liveaboard rent, coin-operated laundry, storage locker fees and vending machine income.