City Dock fuel tank on capital list; finance outlines short‑term debt approach to limit operating strain

City staff presented a request to replace the City Dock fuel tank and make other dock improvements as part of the FY2025–26 proposed budget.

Public Works and Finance presented the dock as an enterprise operation. Interim Finance Director Stefan Massol summarized that the City Dock shows projected revenues of about $3,500,000, with fuel sales projected at roughly $2,500,000 and total operating expenses next year of about $2,800,000 (excluding the capital request). The proposed dock capital plan includes approximately $1,100,000 for a fuel‑tank replacement and Naples Landing improvements.

Massol said the enterprise fund can absorb the project but that a conservative financing approach is appropriate to manage cash flow. If the city proceeds with the capital work in 2025–26, the finance team proposed taking an interest‑only approach for two years on the associated debt so that the fund would maintain liquidity while the project is built and the debt issuance is finalized. Massol noted the city had been making extra principal payments in prior years and would remain several years ahead on the loan schedule even with an interest‑only interval.

Council members asked operational questions about the tank: staff said the existing tank is underground adjacent to the dock walkway and that replacement tanks typically have 20–25 years of service life. Staff also described on‑going resale efforts at the marina store, including additional apparel sales, to boost non‑fuel revenues.

Finance indicated that if state or grant funding becomes available for the dock work (or if the city otherwise reduces expected capital outlays) the short‑term financing approach could be revisited.