TITLE
Recommendation to adopt resolution requesting that the Board of Harbor Commissioners approve the transfer of 5 percent of Fiscal Year 2018 (FY 18) 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 18 audited financial statements. (Citywide)
DISCUSSION
City Charter Section 1209(c)(4) provides for the transfer of a maximum of 5 percent of Harbor Department gross operating revenue. The City Charter provides that the City Council, by a 2/3 vote expressed by resolution, may request the transfer to meet the lawful obligations of the Tidelands Operations 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 19 Proposed Budget, approved by the Harbor Commission, will include a transfer amount calculated on 5 percent of FY 18 operating revenue, which is currently estimated at $19,959,950. This amount is roughly 7 percent higher than the transfer amount received for the previous fiscal year. Approval of the transfer to Tidelands Operations Fund 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 oil revenue are insufficient to fund Tidelands operations, particularly in light of continuing lower oil production and oil prices. The Harbor Department revenue transfer is a critical funding source for Tidelands operations citywide, including support for lifeguards, waterfront maintenance and operations, the Convention Center, and Aquarium debt payments.
This matter was reviewed by De...
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