Barracuda Bay is a jewel for a community such as Riviera Beach. However it is expensive to operate. In an effort to maximize our revenue potential while not adversely affecting resident users we are proposing some slight rate increases.
At the same time staff is presenting a marketing plan for Council's information as well as a proposed redesign plan for the administrative offices and additional revenue space at Barracuda Bay.
Operating cost for Barracuda Bay is approximately $555,000.00 per year. Of the total budget 67% is labor, 11% utilities and 22% is operating cost such as equipment (pumps), maintenance and chemicals. The facility is aging which drive maintenance cost.
In FY17 the facility generated over $79,000.00 in revenue, the most revenue generated in the past 5 years. There is great potential at Barracuda Bay but at the rates charged and limited capacity the facility can only generate so much revenue.
Barracuda Bay realized an approximate 33% increase in revenues in FY17(over FY16). This is mostly due to increase in private rentals, however we did conduct over 800 swim lessons. Based on usage in FY17 with the rate increases proposed we would realize an projected 8.68% revenue increase in FY18.
The rate increases are:
1) Non resident entry fee from $4 to $5 each.
2) Swimming lessons from $25 to $30 (residents) and $40 (non residents)
Note: $30 is the amount that is available per the interlocal agreement with Palm Beach County voucher program
3) Swim team fees from $85 to $95 for non residents
4) Birthday Package activity fee for non residents from $65 to $85 for 10 attendees and from $7 each additional person to $10 each additional (non resident)
5) Private rental from (resident) $200 for four hours to $300 for four hours and nonresidents from $200 for four hours increased to $400 for four hours
6) Each additional hour on private rental raised from $50 to $75 (residents) and from $50 to $100 (non resident)
The proposed redesign of Barracuda Bay would provide more customer service space in the administrative offices but also includes the design of a party room on the west side of the facility. The party room would be a revenue generator for birthday parties, and other gatherings at the facility. While the party room would generate more revenue the cost to operate would be minimal.