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Port Commission adopts FY2014–15 and FY2015–16 biennial operating and capital budget
Summary
The Port Commission adopted the proposed biennial operating and capital budget after staff answered questions on assumptions, interest income (0.65% assumed), potential PG&E rent revenue and outstanding issues including pile removal obligations and vacancy at 501 Cesar Chavez.
Megan Wallace, the port’s budget manager, presented the proposed fiscal year 2014–15 and 2015–16 biennial operating and capital budget, noting no changes since the February informational item and that five attachments were provided to address prior commissioner questions.
Commissioners asked detailed questions about the city general fund backdrop, the assumptions behind revenue lines and the interest‑income forecast. Finance staff (Lawrence Brown) said the budget uses a conservative assumed yield on investments of 0.65% for the current and following years. Brown explained modest projected interest-income growth was conservatively treated given uncertainty in short‑term rate movements.
Commissioners highlighted potential one-time or contingent revenues, including a PG&E/Transbay-related transaction that staff said the Board of Supervisors had approved and which awaits the mayor’s signature. Port staff said that specific revenues from that transaction were not assumed in the current budget cycle but could be reflected in a subsequent cycle once the transaction documents are executed.
Other topics during the budget item included obligations and costs for pile removal on the southern waterfront (Pier 64 pilot; previous estimate roughly $2 million from prior exploratory work) and discussion of the South Beach Marina’s financial status and the large vacancy at 501 Cesar Chavez (17,000 sq ft) where staff said negotiations with a city agency may reduce vacancy.
The commission moved and voted to adopt the biennial budget. Staff said any surplus or additional realized funds would be brought back to the commission for appropriation or applied to capital funds per usual practice.
