The Chatter:
You may have heard that: the campground is a huge financial drain on the City and will
result in a significant increase in taxes for our residents.
The Reality
The campground was acquired by the city in order to provide reasonably
priced access to the island, to avoid the destruction of significant green space
and to help control population density.
Financially, the campground, under its current management, is exceeding the
financial expectations predicted at the time of purchase. The amount of subsidy
required by the city has decreased from more than $300,000 per year to
around $200,000. When the debt is paid, Tybee will have a significant revenue
producer in the campground.
There have been no tax increases because of the campground purchase.
You may have heard that: the campground is a huge financial drain on the City and will
result in a significant increase in taxes for our residents.
The Reality
The campground was acquired by the city in order to provide reasonably
priced access to the island, to avoid the destruction of significant green space
and to help control population density.
Financially, the campground, under its current management, is exceeding the
financial expectations predicted at the time of purchase. The amount of subsidy
required by the city has decreased from more than $300,000 per year to
around $200,000. When the debt is paid, Tybee will have a significant revenue
producer in the campground.
There have been no tax increases because of the campground purchase.
Tax increases have not been brought about by the campground purchase. |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
Around this time, every couple of years, folks on Tybee Island begin to be bombarded
with all kinds of myths, misstatements and downright wrong information. This is usually
related to local campaigns and is generally an attempt to create issues where there
may be none.
In an attempt to address some of the current topics that are out there, we have done
research and compiled the following information. We believe it states the myths and
the truth.
with all kinds of myths, misstatements and downright wrong information. This is usually
related to local campaigns and is generally an attempt to create issues where there
may be none.
In an attempt to address some of the current topics that are out there, we have done
research and compiled the following information. We believe it states the myths and
the truth.
The following article was published as a letter to the editor in 2009.
By Savannah Morning News
Created 2009-08-06 23:30
Three years ago, Tybee Island's City Council unanimously decided to purchase River's End
Campground. The decision was, in part, made to preserve the wooded area.
This was consistent with the City's Master Plan. Committing to our environment is a good
thing.
The campground has a debt service of about $600,000 a year for the next 17 years. The city
will pay this amount as long as we own the campground, whether it operates or not.
The campground generates over $800,000 in annual revenue while costing around
$550,000 in operating expense, exclusive of debt service and non-recurring capital
expenses.
If we close the campground we would still be paying the debt service each year. If we keep it
open, the campground revenues will continue to contribute to the debt service (an amount
equal to revenues minus operating expenses) between $250,000 and $300,000 each year.
While the campground isn't likely to produce enough income to pay its operating expenses
and the debt service, it is contributing a significant amount to that debt.
When the debt has been paid, future Tybee taxpayers will have an excellent source of
revenue for the city. Committing to our children and our grandchildren is a good thing.
If potential campers hear that River's End may close, we could be creating a self-fulfilling
prophecy. Campers who can't plan on this vacation destination will find another.
We also should consider the hidden revenues from thousands of campground visitors each
year - money spent locally for fuel, food, and other island offerings. National statistics on the
economic impact of a campground on a community tell us that River's End annually brings
more than $1.5 million dollars to our merchants.
This revenue adds taxes to the city's coffers. If the city subsidizes the campground by
$300,000 a year, and our businesses get four times that in return, that's an acceptable
investment. Committing to our local businesses is a good thing.
We own the campground. We can disagree about whether we should own it, but we do.
Everyone in a position to be fiscally responsible should do what they can to maximize income
and carefully manage expenses. No one should talk about shutting it down without an
immediate plan to replace the hundreds of thousands of dollars contributed to the city to
service the debt as well as the million plus dollars it brings to our local businesses.
I hope our citizens will get behind the campground and its capable management and show
support for this unique asset in this unique city. That, for sure, would be a very good thing.
| The article below was published in the Savannah Morning News in 2009 but the issues remain the same. Since the publication of this article the campground has reduced debt and increased income so is now an even better investment. |
| Forever Tybee Candidate Parties in the Park coming on November 4, 5, 6 |