Galveston city council members and Port of Galveston trustees told staffs to prepare options for both a one-time payment and a long-term funding arrangement that would send money from port operations to the city.

The joint discussion summarized current flows: passenger fees and parking fees at cruise terminals generate city revenue (notably a $0.25 per passenger “turn” fee and a $1-per-day parking fee), and the port transmits sales-tax revenue generated by port activity. Trustees said the wharves expected to send roughly $3 million to the city in the current fiscal year (figure provided as of November), and that the port’s receipts are expected to grow significantly when Cruise Terminal 16 becomes operational.

One-time request and project focus: Council had earlier passed a motion directing the Wharves Board to consider a one-time payment; at the meeting trustees discussed a possible $1 million contribution that would be tied to a capital project that benefits both entities. Council members and trustees repeatedly emphasized they preferred directing any one-time payment toward a specified infrastructure project — council suggested the 14th Street pump station — rather than an unrestricted transfer.

Long-term structure and timeline: Rather than immediate legislative or charter changes, both bodies agreed staffs should explore options including a percentage-of-gross model, recurring project-based allocations, or other contractual mechanisms. Council and port staff were asked to meet and return a menu of options and project proposals at the next joint meeting, scheduled for April 24, 2025. Staff options should include financial comparisons and any implications for the port’s bond covenants or debt service.

Why it matters: The port’s growing cruise and cargo business is producing new unrestricted revenue flows that could fund city services or capital projects. Council members said they sought a predictable, legally defensible structure that balances city needs and the port’s capital program (trustees stressed existing port capital commitments and debt).

Next steps: Port and city management were instructed to convene staff working groups, identify candidate projects, and present multiple funding mechanisms — and staff will present those options at the April 24 joint meeting.