The Oakland Board of Port Commissioners has adopted a $406.7 million operating and capital budget for its 2012-2013 fiscal year, which began July 1.
The Port of Oakland, which oversees the Oakland seaport, Oakland International Airport and 20 miles of waterfront, projects flat to modest growth in activity at the Port of Oakland in its adopted FY 2012-13 budget. Loaded container traffic at the port is expected to grow just two percent during FY 2012-13.
“While we anticipate modest growth in port revenues in FY 2012-13, our operating expenses are projected to grow faster than revenues,” port Chief Financial Officer Sara Lee noted.
FY 2012-13 budgeted operating revenues are about $311.5 million, a five percent increase compared to FY 2011-2012 budgeted revenues. However, operating expenses are projected to grow 8.2 percent in FY 2012-13, primarily due to rising costs in the areas of health care, pension, and regulatory compliance.
The port’s five-year capital needs assessment, which covers the 2013-2017 fiscal years, includes about $638 million of capital expenditures for projects the port deems critical to revenue maintenance and to keeping it competitive. For FY 2012-13, the Board of Port Commissioners adopted a capital budget of about $112 million; an additional $31 million of capital expenditures are anticipated in FY 2012-13, but haven’t yet been approved by the Board.
Additionally, starting with the fiscal year 2012-2013 budget, all port senior managers begin making a five percent contribution to their own retirement, and a five percent across the board reduction in Commission expenses has been implemented.
“This shared commitment helps the budget balance near-term operating needs with the strategic objectives of long-term financial sustainability and enhanced competitiveness,” Board President Pamela Calloway said.
Although port commissioners are all unpaid volunteers, the port budgets for their travel and other administrative expenses.
The port’s adopted operating and capital budgets are part of the port’s budget summary, which can be seen on the port’s website at http://www.portofoakland.com/portnyou/public.asp.