The Port of San Diego generated a $12.5 million surplus
during the 12 months ending June 30, 2014, the port’s Board of Port
Commissioners was told during it Oct. 14 meeting.
The port’s Fiscal Year 2014 revenue of $157.8 million
exceeded the budget of $150.4 million, while expenses of $133.3 million were
lower than the budgeted $139.3 million, which resulted in the surplus after
deducting $12 million in debt service, capital items and reserves.
The surplus is a turnaround from the most recent recession
and ongoing recovery period. Even during the recovery, the port has continued
to experience a decrease in revenues while faced with the increasing cost of
doing business. As a result, the port’s annual budget process has faced
challenges, as the Board and management grappled with resetting the agency for
long-term financial sustainability and future success.
Since 2009, the port has reduced employees nearly 20 percent
via attrition, but without layoffs. In 2009, the port was among the first
agencies in California to reform its retirement plan and health benefits and in
2011 the port began a multi-year reorganization that included an early
retirement incentive program, furloughs and a hiring freeze.
“In recent years, the Port of San Diego has been faced with
hard choices. Our strong budgetary performance for Fiscal Year 2014 shows that
we have achieved a financial recovery, providing us with additional resources
to support our stewardship of San Diego Bay,” Board of Port Commissioners Chair
Bob Nelson said. “This budget surplus reflects the combined efforts of port
staff, labor partners and the Board. We’re on our way out of this economic
downturn.”
The port’s management has said that as the economic recovery
continues, the port will continue developing its cruise, cargo and commercial
real estate business lines to generate revenue, while remaining vigilant about
cost control.
