TITLE
Recommendation to adopt resolution requesting that the Board of Harbor Commissioners approve the Fiscal Year 2013 (FY 13) estimated transfer of $18,373,000, based on 5 percent of FY 13 estimated 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 13 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 2/3 vote 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 14 Proposed Budget, approved by the Harbor Commission on June 17, 2013, includes a transfer amount of $18.37 million, calculated on 5 percent of estimated FY 13 operating revenues of $367.45 million. 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. The Harbor revenue transfer to Tidelands is a critical funding source supporting Tidelands operations, and is necessary to support lifeguards, waterfront maintenance, the Convention Center, and Aquarium debt payments.
The passage of Measure D in 2010 clarified the City Charter with regard to the City Council’s complete jurisdictional oversight over all City-owned or controlled oil opera...
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