Board of Port Commissioners Approves $151.2 million 2008-09 Budget

Wednesday, 02 July 2008
Contact: John Gilmore (619) 686-6222

The Board of Port Commissioners has approved the 2008-09 budget for the Port of San Diego, with funds allocated for infrastructure maintenance, several environmental initiatives that are designed to protect and improve environmental conditions in San Diego Bay and development projects that will enhance San Diego's waterfront and the regional economy.

The $151.2 million budget for the fiscal year was approved by the commissioners on Tuesday, July 1, 2008, at the Board's monthly meeting.

"This budget ensures that the Port of San Diego will continue to generate temporary and permanent jobs and continue to be an economic engine for the San Diego Region," said Jeffrey McEntee, the Port's chief financial officer and treasurer.

Budgeted revenue is down slightly from the previous year, reflecting the downturn in the national and regional economy, and expenses are budgeted for a 7.8 percent increase.

The new budget includes money for such major projects as the North Embarcadero Visionary Plan that envisions major infrastructure improvements along the waterfront, including a 1.2-mile esplanade stretching along Harbor Drive from Grape Street to G Street, a new cruise ship terminal on Broadway Pier, an 800-room hotel at Lane Field, once home to the minor league San Diego Padres, and the nearly $1 billion hotel and convention center planned for the Chula Vista bay front.

The Port's Environmental Services Department will focus on several key programs, including efforts to reduce air pollution at Port operations, retrofitting or replacing trucks that frequently travel to and from the Port's two maritime terminals and providing shore-side power for ships.

A major portion of the Port's revenue comes from rents, fees and service charges. This year, the rent revenue that comes from the more than 600 tenants on tidelands property is projected to be about $88.6 million. Fee and service charges are expected to be about $35.1 million, which includes dock and wharfage fees and cruise ship passenger fees.

The Port of San Diego operates two marine cargo terminals, the Tenth Avenue Marine Terminal and the National City Marine Terminal. In addition, it operates a cruise ship terminal and oversees 16 public parks stretching from Shelter Island to Imperial Beach. The Port also has a police department that provides services on the tidelands. Port member cities are San Diego, National City, Chula Vista, Coronado and Imperial Beach.

The Port is a public benefit corporation and special government entity. Created in 1963 by an act of the California legislature, the Port manages San Diego harbor and administers the public lands along San Diego Bay. The Port has operated without tax dollars since 1970. It has been responsible for $1.5 billion in public improvements in its five member cities and its economic impact to the San Diego region is $10.6 billion.