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




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