Oklahoma River Cruisers: $155 Per Passenger
Every now and then I like to get updates on the finances of the Oklahoma River Cruisers, which are operated by Hornblower Marine on behalf of the city, the Central Oklahoma Transportation and Parking Authority, and the Oklahoma Riverfront Redevelopment Trust.
The cruises are entering their third season, and it looks like the city is considering continuing its $700,000 annual subsidy of the operation.
In comparison, the city as of last year had a net PROFIT of $484,329.81 from a decade of operations of the canal water taxis. The water taxi’s exceed 100,000 passengers a year. The river cruisers carried a little over 19,000 passengers the first year – a number that plummeted last year – its second season. When you divide the $700,000 by 12 months, and divide that figure by the 397 passengers carried for April, the last available report for the river boats, you end up with the city spending $155 per passenger for a ride that was originally billed as public transit, but is now acknowledged to be a excursion cruise ride.
This $155 per passenger does not include capital costs paid for through federal taxpayer dollars. At yesterday’s city council meeting a budget for 2010/2011 was proposed that maintains current subsidies for the river boats but would cut bus service on routes that have seen increases in ridership.
Season 1:
What was the Operating budget?
FY 09 Budget – $2,019,264
Actual $1,033,090
How much of that came from private funding sources?
$100,000 for marketing efforts from Devon
What was the City’s subsidy?
$700,000
What was the Federal contribution? Were there any requirements for how this money had to be used?
None. Ferry Boat Discretionary Funds are for capital projects only.
What was the first season’s ending ridership for regular schedule?
19,397 plus charters
Season 2:
What was the Operating budget?
FY 10 Budget – $1,244,003
Since this fiscal year has not closed, we’re not able to calculate budget actuals at this time.
How much of that came from private funding sources?
None.
What was the City’s subsidy?
$700,000
What was the Federal contribution? Were there any requirements for how this money had to be used?
$200,000. Capital Cost of Contracting from Stimulus allows for a 40% recovery from the contracted operator expenditures.
Was there a service reduction? If so, how much and was there any savings due to the reduction?
Yes. 35% fewer trips. Savings were realized in crew costs and fuel.
What was the second season’s ending ridership?
11,979 plus charters
Season 3:
What was the Operating budget?
Proposed FY 2011 – $1,153,310
How much of that came from private funding sources?
None.
What was the City’s subsidy?
$700,000
What was the Federal contribution? Were there any requirements for how this money had to be used?
$280,000 budgeted. Capital Cost of Contracting from Stimulus allows for a 40% recovery from the contracted operators expenditures.
Was there a service reduction? If so, how much and was there any savings due to the reduction?
Yes. 21% fewer trips. Savings will be realized in crew costs and fuel.
What was the ridership up through May 31 of this season?
372 riders in April. Ridership from the operator for May has not yet been reported.
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Comments
I’m shocked there aren’t more riders interested in taking a cruise down the barren scenery of the Oklahoma River.
And I’m glad the city is continuing to support these “cruises” while they slash education budgets.
I say get rid of the boats and have canoe rentals on one portion and paddle boats on another portion.
The city is going to have a hard time admitting that they screwed up royaly by not going with river taxi on this deal. River Taxi is in business to make money – Metro Transit is not. That right there doomed this thing to fail.
Here’s how I think you fix this: 1) One price, ride all day. 2)Dump Meridian landing – go as far as Stockyards (Through only 1 lock) and thats it. 3) Run the boats in a circuit between Stockyards, Native American Center (When completed)Chesapeake Boathouse and the Park off of Walker. 4) Sell all three current boats and buy 2 new boats with a slick design that can operate in higher winds.
OKC probably won’t do any of this, but that’s my thought.
Mike, the City doesn’t “slash” education budgets. Maybe you should educate yourself on who does. I do agree with you about the river cruisers, they are 10 years ahead of their time, and not in a good way. The city would benefit much more by putting that money into better bus and trolley routes instead of boats to nowhere.
I agree with Jeffrey, the City should have privitized the river boats. Subsidizing was NOT the way to go on this one. #fail
Woah! Pretty darned interesting stuff, you write. I’ve saved a copy for later use and/or analysis … need to think a bit about this one.