On June 21, 2012, the Board of Port Commissioners adopted the Port of Oakland's Operating and Capital Budgets for Fiscal Year (FY) ending June 30, 2013. The objectives used to develop the FY 2013 Operating and Capital Budgets included: ensuring operating needs are met; supporting organizational priorities and strategic initiatives; planning for the long-term; and maintaining and improving the Port’s financial position.

“This budget reflects our focus on fiscal responsibility, while addressing core operational needs and ensuring adequate funding for strategic activities today and tomorrow,” said, Port of Oakland Executive Director Omar R. Benjamin. “To demonstrate our shared commitment to getting on a path toward long-term sustainability today, in FY13 all Senior Management including myself are going to begin making a 5% contribution to our own retirement, the same investment we are asking of all of our employees and assuming in the budget.”

“My fellow Commissioners and I felt that the Board of Port Commissioners should also share in the prudent efforts to reduce expenses, approving a 5% across the board reduction in Commission expenses.” said Port Board President Pamela Calloway, adding, “This shared commitment helps the budget balance near-term operating needs with the strategic objectives of long-term financial sustainability and enhanced competitiveness.” While the Commissioners are all unpaid volunteers, the Port budgets for travel, printing, and other administrative expenses for the Commission.

The Port’s adopted FY 2012-13 operating budget reflects flat to modest growth in activity at both Oakland International Airport and the Oakland seaport, in line with general economic conditions. Passenger traffic (enplanements) is expected to grow 1.5%. Cargo traffic (loaded containers) is expected to grow 2.0% in FY 2012-13.  Although office space at Jack London Square is nearly 90% occupied, attracting new commercial and industrial tenants continues to be a challenge for the Port’s commercial real estate business.

“Given that the Port’s revenue is not tied directly to activity levels at the Airport and Seaport, growth in activity does not necessarily translate into higher Port revenue,” noted Port Chief Financial Officer Sara Lee. “Furthermore, while we anticipate modest growth in Port revenues in FY 2012-13, our operating expenses are projected to grow faster than revenues,” added CFO Lee. 

FY 2012-13 budgeted operating revenues are approximately $311.5 million, a 5% increase compared to FY 2012 budgeted revenues. However, operating expenses are projected to grow 8.2% in FY 2012-13, primarily due to rising costs in the areas of health care, pension, and regulatory compliance. 

The Port’s updated 5-Year (FY 2013-2017) Capital Needs Assessment (CNA) includes approximately $638 million of capital expenditures for projects critical to revenue maintenance and keeping the Port competitive. For FY 2012-13, the Board of Port Commissioners adopted a Capital Budget of approximately $112 million; an additional $31 million of capital expenditures are anticipated in FY 2012-13, but not yet approved by the Board.  Key projects in the CNA include Oakland International Airport Terminal 1 Retrofit and Renovation, shore power infrastructure at the Oakland seaport, the BART – Oakland Airport Connector, and the redevelopment of the former Oakland Army Base.

The Port’s competitiveness is essential to supporting the Port’s viability and continued positive economic impact in Oakland and the region, which amounts to nearly $10 billion annually, and includes the following jobs and tax revenue benefits:

1. The Port receives no local tax revenue, and from its operations and those of its tenants—contributes more than $462 million in taxes to the City of Oakland, regional cities and counties, and the State of California. 

2. Through its operations and policies, and the business activities of its tenants and customers, the Port supports more than 73,000 jobs across the region, and is connected to approximately 827,000 jobs across the nation.

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