Port Commission Adopts New Budget

The Redwood City Port Commission (June 25) has approved its fiscal year 2014-2015 budget, projecting operating revenues at $6,627,720 and operating expenses at $4,281,890. Operating income of $2.3 million is offset by $660,000 in net non-operating expenses, primarily due to the interest expense on the Port’s 1999 and 2012 revenue bonds.  Subvention of $398,000 to the City of Redwood City is included in the budget, resulting in a projected net income after subvention of $1.3 million.

The FY15 Budget includes $2.9 million for capital projects.  The major projects are “F” dock Marina dredging at an estimated cost of $600,000 and public access improvements between the Seaport Conference Center and the fishing pier estimated at a cost of $500,000.  There will be another installment for the Port’s cost share of the US Army Corps of Engineers Channel Deepening and Improvement Study of $800,000.

Port Executive Director Michael J. Giari said that the FY15 budget is based on an estimated 1,713,000 metric tons of cargo, an increase over the FY13 actual tonnage and FY14 tonnage forecast.  The tonnage is primarily composed of construction sand and aggregates imported from Canada and recycled scrap metal exported to Asia.

 Increased construction and building activity in the region has increased demand for construction materials and is the primary reason for the increase in tonnage for next year and the past two years.  Tonnage for scrap metal is expected to remain stable next year at 240,000 metric tons.  Demand for imported cement has not yet reached a level that exceeds domestic sources of supply.  However, ground slag, a cement additive, is expected to be shipped into the Port in relatively small volume, 32,000 metric tons.

A general rate increase of two percent will be applied next year to all rates and charges, other than those set by contract.  There will also be a new administrative fee of 10 percent added to the cost of providing security guard service while vessels are in the Port.

Recreational boating revenue of $535,000 is based on 90  percent occupancy forecast at the Marina which is the same as last year.  Commercial leases and temporary rentals show a revenue increase of 8 percent due to rent increases.  There are no new major commercial leases planned for next year. 

Port Commission Chair Lorianna Kastrop said, “The growth in tonnage and revenue at the Port will enable us to complete improvements to the waterfront public access areas and guest berthing for recreational and excursion boats. These improvements, estimated to cost approximately $1 million, will increase the use and enjoyment of the community's waterfront.”