Port of Redwood City Currents Newsletter for May 2016

The Port Commission has approved introduction of the Port’s 2016-2017 Fiscal Year budget.  Final approval is scheduled for May 25.

Driven in part by a slowdown in what has been a very rapidly growing demand for construction materials, overall tonnage at the Port is projected to decrease next year by five percent compared to this year.  As a result, total operating revenue of $6.7 million in the FY 2027 budget is two percent lower than in FY 2016.   $4.8 million or 72 percent of the total operating revenue is generated by maritime operations.

A general rate increase of two percent will be applied next year to all rates and charges for wharfage, dockage, and services other than those set by contractor.  This will partially offset the revenue lost due to declining tonnage.  In additions several marine related leases that have expired will be renewed and rental revenue is expected to increase by 10 percent starting about at the end of the second quarter of 2017.

Recreational boating revenue at the Port Marina of almost $550.000 is based on a continued 10 percent vacancy factor, which is the same as this year. Commercial leases and temporary rents show a slight revenue increase of one to two percent due to rent increases.

The budget includes $4.8 million in operating expenses, two-thirds of which is attributed to operations and one-third to administration.  This is a nine percent increase, primarily due to salary/benefits for a newly-filled position of assistant manager of operations and administration, salary increases averaging two to three percent, and increase in benefit costs for retirement and medical insurance.

Operating income of $1.9 million is offset by $235,000 in net non-operating expenses, primarily due to the interest expenses on the Ports 2015 and 2012 revenue bonds. Subvention of $404,000 to the City of Redwood City is included in the budget, resulting in a projected net income after subvention of almost $1.3 million.

The FY 2017 budget includes $1.8 million for capital projects. The major projects are Wharves 3 & 4 fender system replacement and a few other projects, including an Interagency Operations Center for emergency response which will be partially funded by a federal grant.

Including investments for Port capital improvement projects, the FY 2017 budget cash flow is positive by $308,000.

Talk with anyone working to restore marshes and wetlands along San Francisco Bay, and they’ll say there’s no shortage of projects that are all but ready to go – except for the lack of funds.

If Measure AA passes on June 7, that job gets easier to the tune of roughly $25 million a year.

“This would be a huge benefit for us,” said John Bourgeois, project manager for the California State Coastal Conservancy’s efforts to convert 15,000 acres of South Bay salt ponds to a seminatural condition. “We own the property, we have the plan in place, and we know how to do this kind of restoration. The missing piece is money.”

	These funds would help complete large-scale restoration projects like the ones at Bair Island and the South Bay Salt Pond Restoration Project.

The measure would create a parcel tax across the Bay Area of $12 per parcel for the next 20 years. The money raised would be dispensed across the region on an annual basis to projects with measurable environmental benefits in terms of wildlife habitat, public access and “protecting communities from flood.” Like other such tax proposals in California, it needs a “yes” from two-thirds of voters to become law.

A nine-county measure of this sort is a first for the Bay Area. It also differs from such tax initiatives as countywide transportation improvements that spell out exactly who gets what down the road. The idea with Measure AA is to replenish a pool of money each year available for projects deemed worthy, whether it provides the final bit of cash for a restoration effort or helps attract federal and state funding.

The approach also makes sense, proponents say, given the huge body of water that would benefit – a placid-looking estuary that stretches from San Jose to Petaluma, the Golden Gate to the Sacramento-San Joaquin River Delta.

“People view the bay and its shoreline as a regional asset and a regional symbol,” said David Lewis, executive director of the advocacy group Save the Bay. “We all see it, and we all share it in that regard.”

The tax has long been a goal of local environmentalists eager for a guaranteed stream of financial support for restoration efforts, and the San Francisco Bay Restoration Authority was created by the state Legislature in 2008 to dispense funds should an ongoing source exist. But the recession put the initiative on hold.

Even now, given the novelty of the nine-county approach and the requirement of a “supermajority” of voter support, the pro-AA campaign is leaving nothing to chance. Extensive polling occurred before the $12 figure was chosen, as well as the decision to pursue a flat parcel tax rather than something keyed to the value of individual properties. Roughly $2.5 million has been raised for the campaign, and endorsements have been collected from more than 600 individuals, organizations and government bodies – a cross-section that ranges from U.S. Sen. Dianne Feinstein and the Oakland Chamber of Commerce to 57 environmental groups.

To read more of this article:  http://www.sfchronicle.com/bayarea/article/Measure-AA-seeks-Bay-Area-wide-parcel-tax-to-7386897.php