TITLE
Recommendation to adopt resolution requesting Board of Harbor Commissioners to approve the transfer in full of $12,423,706, based on 10 percent of the Fiscal Year 2009 change in net assets, from the Harbor Revenue Fund (HR) to the Tidelands Operating Fund (TF) effective immediately;
Approve the subsequent annual transfer on October 1, 2010 based on 80 percent of the Harbor Revenue Fund's unaudited change in net assets as of September 30, 2010, for $9,938,965, with the remaining 20 percent of $2,484,741 to be transferred after March 31, 2011 upon issuance of the Harbor Department's Fiscal Year 2010 audited financial statements, with a corresponding true-up adjustment, as necessary, to reflect the final audited amount; and
Consider the elimination of the previous year's transfer from the base upon which the annual transfer is calculated, effective with the Harbor Department's Fiscal Year 2010 audited financial statements, for an additional $1.2 million. (Citywide)
DISCUSSION
City Charter Section 1209(c)(4) provides for the transfer of 10 percent of the Harbor Department's change in net assets as shown by the most recent available independently audited financial statements, to the Tidelands Operating Fund.
Traditionally, the City has based its request for the annual Harbor transfer on the change in net assets from two fiscal years prior (e.g., the FY 10 transfer to the Tidelands Operating Fund was based on the FY 08 audited financial statements of the Harbor Department). As such, the transfer based upon the Harbor Department's FY 09 audited financial statements would typically occur in FY 11. Consistent with the City Auditor's report dated June 15, 2010, staff is recommending the City Council request the Board of Harbor Commissioners make the transfer in full of $12,423,706 to the Tidelands Operating Fund, based upon the FY 09 change in net assets of $124,237,060, effective immediately as the FY 09 audit is complete. The Harbor Department would retain a ...
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