TITLE
Recommendation to adopt resolution requesting that the Board of Harbor Commissioners approve the transfer of 5 percent of Fiscal Year 2015 (FY 15) gross operating revenue, from the Harbor Revenue Fund (HR 430) to the Tidelands Operations Fund
(TF 401), with a true-up adjustment if necessary, to reflect the final gross revenue amount upon issuance of the Harbor Department’s FY 15 audited financial statements. (Citywide)
DISCUSSION
City Charter Section 1209(c)(4) provides for the transfer of a maximum of 5 percent of Harbor gross operating revenue. The Charter provides that the City Council, by a vote of two-thirds (2/3) of all its members, expressed by Resolution, may request the transfer in order to meet the lawful obligations of the Tidelands Operating Fund. The provision requires a majority vote of the Harbor Board of Commissioners, expressed by Resolution, to enact the transfer, determining that the funds will not be needed for Harbor Department operations. The Harbor Department FY 16 Proposed Budget, approved by the Harbor Commission, will include a transfer amount calculated on 5 percent of FY 15 operating revenue, which is currently estimated at $17,700,000. Approval of the transfer to Tidelands will be considered by the Harbor Commission as a separate budget action in response to this formal request by the City Council.
Tidelands Fund Requirements
Department operating revenues generated in the Tidelands area (parking, leases, service agreements, etc.) and Tidelands base oil revenue are insufficient to fund Tidelands operations, particularly in light of the current oil revenue shortfall. The Harbor revenue transfer to Tidelands is a critical funding source necessary to support lifeguards, waterfront maintenance, the Convention Center, and Aquarium debt payments.
This matter was reviewed by City Attorney Charles Parkin on May 4, 2015 and by Budget Management Officer Victoria Bell on April 29, 2015.
TIMING CONSIDERATIONS
Authority to tran...
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