7d Supp 1
ITEM NO. 7d_Supp_1 DATE OF MEETING Nov. 2, 2010 Tax Levy Discussion Follow-up November 2, 2010 Introduction Prior briefings on October 12 and 26, 2010 Applied current policies to updated information Policies Flat levy amount of $73.5 million G.O. debt service no greater than 75% of levy amount Levy supports Real Estate Division Seaport self funding going forward Levy pays Seaport related existing G.O. bonds Levy pays environmental expenses primarily legacy costs Funding gap due to: Environmental costs have increased significantly Real Estate CIP and operating expenses have increased 2 Preliminary 2011-2015 Tax Levy Forecast Presented on October 12, 2010 $'000 2011 2012 2013 2014 2015 LEVY USES G.O. DS - existing 40,438 40,442 40,444 40,442 30,746 Other uses Roads and Transportation Projects 9,100 5,050 600 - - School Construction & Noise Insulation 650 7,160 3,028 1,094 - Sea & RE Environmental expenditures - preliminary 11,559 23,985 18,348 3,952 10,009 Transportation & Infrastructure Fund 4,000 PortJobs 46 46 46 46 46 Subtotal Other 21,355 36,241 22,022 5,092 14,055 Real Estate Support RE Capital Total 20,357 20,477 12,109 11,455 11,395 RE Operating Subsidy 5,372 5,312 5,707 5,175 5,086 Subtotal RE Support 25,729 25,789 17,816 16,630 16,481 Total Uses 87,521 102,472 80,281 62,164 61,282 LEVY SOURCES Beginning Tax Levy Fund Balance 26,634 12,613 (16,359) (23,140) (11,805) Rail Corridor reimbursements less repayment of GF loan Annual levy 73,500 73,500 73,500 73,500 73,500 Total uses (87,521) (102,472) (80,281) (62,164) (61,282) Projected Ending Tax Levy Balance 12,613 (16,359) (23,140) (11,805) 413 Transportation & Infrastructure Fund Balance 13,000 13,000 13,000 13,000 17,000 3 Today's Briefing Based on Commission discussion, staff has developed scenarios for consideration All scenarios include the following assumptions: G.O. bond refunding savings - estimated Seaport funds Environmental expenditures classified as "operating" Costs associated with on-going operations vs. legacy costs Estimated at $1.5 million over 5 years $5 million for S. Park Bridge $300 million for SR 99 Tunnel Net of credit for FAST Most of funding provided in 2015 with G.O. bonds Total G.O. debt service in 2015 requires minimum $70 mil. levy Port receives remaining payments from rail corridor partners this year All scenarios have tax levy fund deficits in some years up to $12 million 4 Levy Scenarios Levy scenarios vary as to: Amount of levy Amount of Real Estate CIP deferral Scenarios #1 Fully fund Real Estate CIP #2 allow the tax levy to increase 1% per year 2a - Beginning in 2011 2b - Beginning in 2012 #3 Modest levy increase with $10 million CIP deferral Job and sales tax implications for deferred projects is being evaluated 5 Scenario Results Summary ($ million) 2011 Levy Future Levy RE CIP Deferral 1. Full Funding 76.3 76.3 (2012-2015) 0 2a. 1% Levy Increase 2011 74.2 increases annually 3 2b. 1% Levy Increase 2012 73.5 increases annually 6.5 3. Modest Levy increase 2012 73.5 74.5 (2012-2015) 10 6 Annual Levy Amounts 7 Levy Scenarios Compared to Max Levy 8 Real Estate Division 2011 Capital Budget Tax Levy Scenario Impact November 2, 2010 9 Real Estate 2011 Capital Budget Tax Levy Scenario 2a: Allow Tax Levy to Increase 1% Per Year Beginning in 2011 Result: Net Real Estate CIP Reduction of $3 million until at least after 2015. Impact to Real Estate Capital Business Plan Prospective Projects Defer $10 million of 2011-2013 projects until 2014 Defer $3 million of 2011-2013 projects until after 2015 10 Real Estate 2011 Capital Budget Business Plan Prospective Renewal/Enhancement Under Scenario 2a: 1% increase 2011 $'s in 000's 2011 2012 2013 2014 2015 11-15 Total RE: Contingency Renew & Replace (1) 0 0 0 9,000 5,000 14,000 FT Paving/Storm Upgrades 750 750 0 0 0 1,500 FT Net Shed Solution (2) 500 600 2,150 8,950 4,400 16,600 P66 Chiller Upgrades 350 0 0 0 0 350 FT C-15 Bldg Subsidence Improvement (3) 150 1,850 500 0 0 2,500 SBM Fuel Dock Building 100 900 0 0 0 1,000 T102 Bldg Roof Replacement 100 2,330 0 0 0 2,430 FT C2 Roof & HVAC Replacement 50 525 0 600 0 1,175 FT C14 (Downey) Bldg Improve 0 0 100 350 0 450 SBM Central Seawall Replace 0 0 915 0 0 915 Total 2,000 6,955 3,665 18,900 9,400 40,920 Original Total 5,000 11,955 8,665 8,900 9,400 43,920 Change (3,000) (5,000) (5,000) 10,000 0 (3,000) Note: Shading indicates projects that have been deferred or eliminated 11 Real Estate 2011 Capital Budget Tax Levy Scenario 2b: Allow Tax Levy to Increase 1% Per Year Beginning in 2012 Result: Net Real Estate CIP Reduction of $6.5 million until at least after 2015. Impact to Real Estate Capital Business Plan Prospective Projects Defer $6.5 million of 2011-2013 projects until 2014 Defer $6.5 million of 2011-2013 projects until after 2015 12 Real Estate 2011 Capital Budget Business Plan Prospective Renewal/Enhancement Under Scenario 2b: 1% increase 2012 $'s in 000's 2011 2012 2013 2014 2015 11-15 Total RE: Contingency Renew & Replace (1) 0 0 0 5,500 5,000 10,500 FT Paving/Storm Upgrades 750 750 0 0 0 1,500 FT Net Shed Solution (2) 500 600 2,150 8,950 4,400 16,600 P66 Chiller Upgrades 350 0 0 0 0 350 FT C-15 Bldg Subsidence Improvement (3) 150 1,850 500 0 0 2,500 SBM Fuel Dock Building 100 900 0 0 0 1,000 T102 Bldg Roof Replacement 100 2,330 0 0 0 2,430 FT C2 Roof & HVAC Replacement 50 525 0 600 0 1,175 FT C14 (Downey) Bldg Improve 0 0 100 350 0 450 SBM Central Seawall Replace 0 0 915 0 0 915 Total 2,000 6,955 3,665 15,400 9,400 37,420 Original Total 5,000 11,955 8,665 8,900 9,400 43,920 Change (3,000) (5,000) (5,000) 6,500 0 (6,500) Note: Shading indicates projects that would be eliminated/deferred 13 Real Estate 2011 Capital Budget Tax Levy Scenario 3: Reduce the Real Estate CIP by $10 million Result: Net Real Estate CIP Reduction of $10 million until at least after 2015. Impact to Real Estate Capital Business Plan Prospective Projects Defer $3 million of 2011-2013 projects until 2014 Defer $10 million of 2011-2013 projects until after 2015 14 Real Estate 2011 Capital Budget Business Plan Prospective Renewal/Enhancement Under Scenario 3: $10 million reduction in RE CIP $'s in 000's 2011 2012 2013 2014 2015 11-15 Total RE: Contingency Renew & Replace (1) 0 0 0 2,000 5,000 7,000 FT Paving/Storm Upgrades 750 750 0 0 0 1,500 FT Net Shed Solution (2) 500 600 2,150 8,950 4,400 16,600 P66 Chiller Upgrades 350 0 0 0 0 350 FT C-15 Bldg Subsidence Improvement (3) 150 1,850 500 0 0 2,500 SBM Fuel Dock Building 100 900 0 0 0 1,000 T102 Bldg Roof Replacement 100 2,330 0 0 0 2,430 FT C2 Roof & HVAC Replacement 50 525 0 600 0 1,175 FT C14 (Downey) Bldg Improve 0 0 100 350 0 450 SBM Central Seawall Replace 0 0 915 0 0 915 Total 2,000 6,955 3,665 11,900 9,400 33,920 Original Total 5,000 11,955 8,665 8,900 9,400 43,920 Change (3,000) (5,000) (5,000) 3,000 0 (10,000) Note: Shading indicates projects that would be eliminated/deferred 15 Appendix Background on Real Estate CIP presented September 28,2010 16 Real Estate 2011 Capital Budget Tax Levy Scenario Impacts Real Estate 2011 Capital Budget presented at September 28th Budget Workshop Total Capital Plan (Committed and Business Plan Prospective) is $75.8 million of which $36.2 million is for Fishermen's Terminal and the Maritime Industrial Center To show impact of Tax Levy scenarios, Capital Budget amounts shown by year for 2011-2015 in this presentation Projects and amounts are unchanged Categorization of projects are unchanged Impacts of the 3 tax levy scenarios shown separately 17 Real Estate 2011 Capital Budget Capital Budget Summary 2011-2015 $'s in 000's 2011 2012 2013 2014 2015 11-15 Total Committed 15,357 8,522 3,444 2,555 1,995 31,873 Bus Plan Prospective 5,000 11,955 8,665 8,900 9,400 43,920 20,357 20,477 12,109 11,455 11,395 75,7930 Other Prospective 0 2,026 10,435 20,000 21,950 54,411 Total 20,357 22,503 22,544 31,455 33,345 130,204 18 Real Estate 2011 Capital Budget Committed Capital Budget $'s in 000's 2011 2012 2013 2014 2015 11-15 Total Under Contract 186 0 0 0 0 186 Commission Auth 10,481 3,454 0 0 0 13,935 Division Pending 4,690 5,068 3,444 2,555 1,995 17,752 Total 15,357 8,522 3,444 2,555 1,995 31,873 19 Real Estate 2011 Capital Budget Committed-Under Contract $'s in 000's 2011 2012 2013 2014 2015 11-15 Total RE Maintenance Shop Solution 186 0 0 0 0 186 Total 186 0 0 0 0 186 20 Real Estate 2011 Capital Budget Committed-Commission Authorized $'s in 000's 2011 2012 2013 2014 2015 11-15 Total FT S. Wall Reconstruction Phase 4 4,668 0 0 0 0 4,668 FT NW Dock E Fender Sys Replace 3,350 0 0 0 0 3,350 MIC Seawall Replacement 2,123 0 0 0 0 2,123 FT C15 HVAC Improvements 340 3,454 0 0 0 3,794 Total 10,481 3,454 0 0 0 13,935 21 Real Estate 2011 Capital Budget Committed-Division Pending $'s in 000's 2011 2012 2013 2014 2015 11-15 Total Small Projects 992 500 500 500 500 2,992 P69 N Apron Piling Cathodic 1,400 1,503 0 0 0 2,903 Tenant Improvements -Capital 775 849 488 560 70 2,742 Bell Harb Lighting Ctrl Upgrade 650 0 0 0 0 650 RE Div: Green Port Initiative 200 1,050 200 0 50 1,500 Fleet Replacement 173 666 1,756 995 875 4,465 Other 500 500 500 500 500 Total 4,690 5,068 3,444 2,555 1,995 17,752 22 Real Estate 2011 Capital Budget Business Plan Prospective $'s in 000's 2011 2012 2013 2014 2015 11-15 Total Renewal/Enhancement 5,000 11,955 8,665 8,900 9,400 43,920 Total 5,000 11,955 8,665 8,900 9,400 43,920 23 Real Estate 2011 Capital Budget Business Plan Prospective Renewal/Enhancement $'s in 000's 2011 2012 2013 2014 2015 11-15 Total RE: Contingency Renew & Replace 3,000 3,000 3,000 3,000 5,000 17,000 FT Paving/Storm Upgrades 750 750 0 0 0 1,500 FT Net Shed Solution 500 2,100 4,650 4,950 4,400 16,600 P66 Chiller Upgrades 350 0 0 0 0 350 FT C-15 Bldg Subsidence Improvement 150 2,350 0 0 0 2,500 SBM Fuel Dock Building 100 900 0 0 0 1,000 T102 Bldg Roof Replacement 100 2,330 0 0 0 2,430 FT C2 Roof & HVAC Replacement 50 525 0 600 0 1,175 FT C14 (Downey) Bldg Improve 0 0 100 350 0 450 SBM Central Seawall Replace 0 0 915 0 0 915 Total 5,000 11,955 8,665 8,900 9,400 43,920 24
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