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Port director outlines $1.6 billion deferred maintenance and a strained plan to devote 20% of operating revenue to capital
Summary
Monique Moyer told the Board’s Budget & Finance Committee the Port of San Francisco faces about $1.6 billion in deferred maintenance and is proposing a $3.8 million supplemental to meet a Port Commission policy dedicating 20% of operating revenues to capital; the committee tabled the full budget update for further consideration.
Monique Moyer, Director of the Port of San Francisco, told the Board of Supervisors’ Budget and Finance Committee that the Port’s 10-year capital plan identifies about $1,600,000,000 in deferred maintenance and a potential financing plan of roughly $1,000,000,000, leaving an estimated shortfall of $500,000,000. "We are on the second year of our two-year budget," Moyer said, and described five strategic priorities including preserving maritime tenants and uses, retaining production-distribution-repair (PDR) and nonprofit space, rehabilitating infrastructure and planning seawall work.
Moyer said the Port does not receive General Fund support, derives most operating revenue from commercial real estate leases and maritime activities, and is proposing modest changes within the 4% allowance to generate additional surplus. The Port proposes a $3,800,000 budget amendment, of which about $800,000 would be applied to principal and interest on new debt and the remainder to cash investment to help meet a 20% policy goal. "20% is a pretty big number for us," Moyer said, calling the target "a stretch" because many costs—personnel, debt service and work orders—are largely fixed.
She described specific uses for the supplemental funds, including lowering a peer-structures repair line item to create surplus, additional investment in the Port’s ADA transition plan and repairs to Pier 35’s roof; the presentation estimated about $14,000,000–$16,000,000 in capital investment for the next fiscal year if the adjustments are approved. Moyer also highlighted larger projects such as seawall rehabilitation, noting the seawall was built in 42 segments over 100 years and will be a multidecade effort.
Supervisor Mark Farrell asked whether dedicating 20% of operating revenue to capital is realistic; Moyer reiterated it would require difficult policy choices between cutting administrative operations and capital investment. The committee took public comment (none was offered) and then moved to table the Item 1 budget update for further consideration.
