Santa Cruz Port District

Santa Cruz Port District Service and Sphere of Influence Review August 7, 2024 (Adopted Version) Local Agency Formation Commission of Santa Cruz County 701 Ocean Street, Room 318-D Santa Cruz, CA 95060 Website: www.santacruzlafco.org Phone: (831) 454-2055 TABLE OF CONTENT EXECUTIVE SUMMARY .......................................................................................................................2 Introduction .............................................................................................................................................. 2 Service Provision ....................................................................................................................................... 2 Key Findings .............................................................................................................................................. 4 Recommended Actions ............................................................................................................................. 5 DISTRICT OVERVIEW ..........................................................................................................................6 History ....................................................................................................................................................... 6 Service Area .............................................................................................................................................. 6 Services and Operations ........................................................................................................................... 6 Population and Growth ........................................................................................................................... 11 FINANCES ........................................................................................................................................ 12 Operating and Non-Operating Revenue ................................................................................................. 13 Operating and Non-Operating Expenditure............................................................................................ 14 Assets & Liabilities .................................................................................................................................. 15 Fund Balance / Net Position .................................................................................................................... 16 GOVERNANCE .................................................................................................................................. 19 Legal Authority ........................................................................................................................................ 19 Local Accountability & Structure ............................................................................................................ 19 Management Efficiencies ........................................................................................................................ 20 Challenges and Opportunities ................................................................................................................. 23 SPHERE OF INFLUENCE ..................................................................................................................... 24 Cortese-Knox-Hertzberg Act ................................................................................................................... 24 Current & Proposed Sphere Boundary ................................................................................................... 24 DISTRICT SUMMARY ........................................................................................................................ 27 SERVICE AND SPHERE REVIEW DETERMINATIONS ............................................................................. 28 Service Provision Determinations ........................................................................................................... 28 Sphere of Influence Determinations ....................................................................................................... 29 APPENDICES .................................................................................................................................... 30 Appendix A: “Harbor News” Newsletter (Spring 2024) .......................................................................... 30 Appendix B: Division-Based Election Map (November 2024) ................................................................. 30 Appendix C: Capital Improvement Plan (2024 to 2028) ......................................................................... 30 Santa Cruz Port District Service & Sphere Review Page 1 of 30 EXECUTIVE SUMMARY Introduction This Service and Sphere of Influence Review provides information about the services and boundaries regarding the Santa Cruz Port District (referred to as “SCPD” and “District”). The report will be used by the Local Agency Formation Commission (LAFCO) to conduct a statutorily required review and update process. The Cortese-Knox-Hertzberg Act requires that LAFCO conduct periodic reviews and updates of Spheres of Influence for all cities and special districts in Santa Cruz County (Government Code Section 56425). It also requires LAFCO to conduct a review of municipal services before adopting sphere updates (Government Code Section 56430). The last service review conducted for SCPD was adopted on August 7, 2019. The service review process does not require LAFCO to initiate changes of organization based on service review conclusions or findings; it only requires that LAFCO make determinations regarding the delivery of public services in accordance with Government Code Section 56430. However, LAFCO, local agencies, and the public may subsequently use the determinations and related analysis to consider whether to pursue changes in service delivery, government organization, or spheres of influence. Service and sphere reviews are informational documents and are generally exempt from environmental review. LAFCO staff has conducted an environmental review of the District’s existing sphere of influence pursuant to the California Environmental Quality Act (CEQA) and determined that this report is exempt from CEQA. Such an exemption is due to the fact that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment (Section 15061[b][3]). Service Provision The Santa Cruz Port District was formed in 1950 by petition of the voters to provide for and manage small craft harbor facilities in Santa Cruz County. The Santa Cruz Port District offers slip renter services including wet berthing and dry storage, as well as visitor services such as visitor berthing, launching and parking. The District also leases space for restaurants, retail, office, and marine commercial businesses. The District’s facilities are in-demand with an extensive wait list for all the slips and most dry storage spaces. The District’s jurisdictional boundary borders the Pacific Ocean and encompasses a 27.9 square mile area that includes the City of Santa Cruz. The service area for the Santa Cruz Harbor was defined by the United States Army Corps of Engineers after review of data provided by the United States Coast Guard and Collector of Customs. Figure 1 on page 3 provides a vicinity map showing the location of the District on the central coast of Santa Cruz County. Santa Cruz Port District Service & Sphere Review Page 2 of 30 Figure 1: Vicinity Map Santa Cruz Port District Service & Sphere Review Page 3 of 30 Key Findings The following are key findings of the 2024 Service and Sphere of Influence Review for the Santa Cruz Port District: 1. The District provides harbor services to a population beyond its borders. The Santa Cruz Port District encompasses 27.9 square miles consisting of the vast majority of the City of Santa Cruz and surrounding unincorporated territory. However, the District also serves a larger regional area that includes the San Francisco Bay area and the San Joaquin Valley. The Santa Cruz Harbor is considered a regional resource and, per the terms of the original agreement to construct the harbor with use of state and federal funding, the District must provide equal boating opportunities to all residents of the state, not just Port District residents. As a result, there is a constant demand for small craft harbor space. Based on staff’s analysis, there will be a continued need for services and facilities offered by the District. 2. The District is financially sound. The Santa Cruz Port District’s financial ability to provide services is well established. The District has successfully kept costs below its revenue stream since 2013. Audited financial statements from Fiscal Years 2013 to 2023 indicate that the increase in net position has ranged from $170,000 to as high as $6.6 million. As of March 31, 2023, the District is operating with a net position of approximately $35 million and current assets (ex. cash and cash equivalents) of approximately $16 million. 3. The District has an active joint agreement with the County and City of Santa Cruz for over 30 years. Since 1991, the District has redirected its property taxes towards the cost of municipal services provided by the County and the City of Santa Cruz. In exchange for the property tax redistribution, the two local agencies provide police, fire, traffic control, and street maintenance services within the harbor area. While the agreement is automatically extended on an annual basis, it may be beneficial for the affected agencies to review the agreement and make any necessary updates, if warranted. 4. The District’s website is a model of accountability and transparency. Senate Bill 929 was signed into law in September 2018 and requires all independent special districts to have and maintain a website by January 1, 2020. It outlines minimum website data requirements agencies must provide including contact information, financial reports, and meeting agendas/minutes. The Santa Cruz Port District maintains a comprehensive website that exceeds the minimum requirements outlined in SB 929. LAFCO recommends that the District include a copy or link of the latest service and sphere review on their website for additional transparency. 5. The District needs a sphere update. LAFCO originally adopted a coterminous sphere for the District in December 1988. The sphere has remained the same without activity for almost 40 years. Based on LAFCO’s analysis, the sphere boundary should be amended to address existing discrepancies, including but not limited to small portions of the City of Santa Cruz being excluded in the current sphere. State law prohibits “dividing a municipal corporation” (Harbors and Navigation Code Section 6210). LAFCO recommends amending the sphere to include previously excluded portions of the City of Santa Cruz. Santa Cruz Port District Service & Sphere Review Page 4 of 30 Recommended Actions Based on the analysis and findings in the 2024 Service and Sphere of Influence Review for the Santa Cruz Port District, the Executive Officer recommends that the Commission: 1. Find that pursuant to Section 15061(b)(3) of the State CEQA Guidelines, LAFCO determined that the sphere of influence review is not subject to the environmental impact evaluation process because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment and the activity is not subject to CEQA; 2. Determine, pursuant to Government Code Section 56425, the Local Agency Formation Commission of Santa Cruz County is required to develop and determine a sphere of influence for the Santa Cruz Port District, and review and update, as necessary; 3. Determine, pursuant to Government Code Section 56430, the Local Agency Formation Commission of Santa Cruz County is required to conduct a service review before, or in conjunction with an action to establish or update a sphere of influence; and 4. Adopt a Resolution (LAFCO No. 2024-15) approving the 2024 Service and Sphere of Influence Review for the Santa Cruz Port District with the following conditions: a. Amend the District’s sphere of influence to include the previously excluded portions of the City of Santa Cruz; and b. Direct the Executive Officer to distribute a copy of the adopted service and sphere review to the Santa Cruz Port District representatives and any other interested or affected parties, including but not limited to the County and the City of Santa Cruz. Santa Cruz Port District Service & Sphere Review Page 5 of 30 DISTRICT OVERVIEW History The Santa Cruz coast area was first surveyed in the early 1900s by the United States Army Corps of Engineers for the purpose of establishing a safe harbor in this portion of the Monterey Bay. The harbor was re-surveyed in the Fall of 1949 and, after extensive field studies and numerous meetings with affected local, state, and federal agencies, it was concluded that the Santa Cruz area was an appropriate location for a harbor. The Santa Cruz Port District was then established in 1951 to provide management during the construction phase of the Santa Cruz Harbor. The south (lower) harbor was completed in 1964 and has 390 designated docking areas for vessels known as “slips.” The north (upper) harbor was completed in 1973 and has 586 slips. The Port District continued to operate after construction was complete. Today, the District provides year-round services and operations, specifically through seven programs: (1) Harbor Patrol, (2) Marina Management, (3) Rescue Services, (4) Parking Services, and (5) Events, (6) Fuel Services, and (7) Boatyard. The District also publishes a free newsletter to inform the public about its ongoing operations, upcoming events, and status reports on a periodic basis. Appendix A provides a copy of the latest newsletter (Spring 2024). Service Area The District boundaries encompass a 27.9 square mile area that includes the majority of the City of Santa Cruz and unincorporated area to the north and east of the city. The service area for the Santa Cruz Harbor was defined by the United States Army Corps of Engineers after review of data provided by the United States Coast Guard and Collector of Customs. The boundaries of the Port District encompass almost one-sixth the total area of Santa Cruz County. The lower harbor, south of the Murray Street and Southern Pacific Railroad bridges, was completed in 1964. The upper harbor, north of the bridges, was completed in 1973. Figure 1 shows the District’s jurisdictional and sphere of influence boundaries. Services and Operations The Santa Cruz Harbor is a commercial fishing and full-service small craft harbor. It is bordered by Seabright Beach, Harbor Beach and Twin Lakes State Beach southwest and southeast of the jetties, residential development on the east and west, and the Arana Gulch greenbelt, owned by the City of Santa Cruz on the north. Permanent jetties placed along the east and west sides of the Harbor’s entrance channel provide year-round access to the Monterey Bay and Pacific Ocean. At present, the Santa Cruz Port District encompasses approximately 38 acres of land and 52 acres of water area, and offers an array of services including wet berthing, dry storage, visitor berthing, launching, and over 1,000 parking spaces. The District owns the land within its jurisdictional boundary and leases space for restaurant, retail, office, and marine commercial businesses. The Santa Cruz Port District also accommodates non‐profit foundations, such as the O’Neill Sea Odyssey, Save Our Shores, and Clean Oceans International. Though the majority of boat use within the District is for recreational purposes, Santa Cruz Harbor provides berthing for a small Santa Cruz Port District Service & Sphere Review Page 6 of 30 commercial fishing fleet, numerous commercial charter operations, the marine education foundation O’Neill Sea Odyssey, the U.S. Coast Guard, the California Air National Guard, and a commercial vessel towing service. As a result, the District’s facilities are in high demand and require maintaining a wait list for all of the slips and most dry storage spaces. Tables A and B show the approximate wait time for each harbor slip. Slips can range from 20 to 60-feet long. Table A – Approximate Wait Time for Harbor Slips South Harbor 24-Foot Slip 5 Years 30-Foot Slip 22 Years 40-Foot Slip 23 Years 50-Foot Slip 23 Years 60-Foot Slip 16 Years Table B – Approximate Wait Time for Harbor Slips North Harbor 20-Foot Slip 2 Years 25-Foot Slip 3 Years 30-Foot Slip 3 Years 35-Foot Slip 5 Years 40-Foot Slip 5 Years 45-Foot Slip 5 Years As of June 1, 2024, the District has over 1,000 names on the wait list. The approximate wait time for a slip to become available varies but on average it takes around 20 years for south harbor locations and around six years for slips in the north harbor area. In addition to harbor slips, there are also approximately 275 dry-stored vessels spaces available and over 200 storage spaces for kayaks and dory-type vessels with minimal wait time. Table C on page 8 provides a listing of the District’s current fees and rate for all services. Dredging Servies The Port District’s dredging operation occurs between November and April of each year. This has occurred each year since the harbor was first constructed in 1964. Sand, which moves downcoast through the process of littoral drift, becomes trapped in the harbor entrance channel. The dredging operation picks up the sand deposited in the entrance and places it downcoast, bypassing the east jetty, so it can continue to provide replenishment and protection downcoast of the harbor. Why is this important? The District supports a wide array of commercial and recreational activities that have a significant impact on our local economy. Without the ability to perform annual maintenance dredging, shoaling occurs and closes the facility. In other words, dredging is what makes the Port District a harbor. The Port District is the only small craft harbor that has agreed to assume responsibility for and share in the cost of dredging a federal navigation channel. The Port District maintains a cooperative agreement with the US Army Corps of Engineers, which sets the Corps’ reimbursement rate at 35% of actual average annual expenses based on actual expenditures for the previous 5-year period. Accordingly, the annual federal reimbursement was set at $525,000 for the period 2020-2024. The Port District’s current annual dredging expenses equate to approximately $1,700,000. Santa Cruz Port District Service & Sphere Review Page 7 of 30 Table C – District Rates and Fees Rates & Fees Description South Harbor Single Side $15.00/foot Double Side $16.51/foot AA Dock $25.50/foot ABC Dock $30.00/foot North Harbor 20' (Including Inside-Ties) $13.47/foot 25'/30' $14.19/foot 35'/40' $14.58/foot Wide 45' $16.74/foot Dory-Tie $72.64/month Dry Storage 7th & Brommer Gravel Lot $138.36/month North Harbor Paved Lot $148.04; $178.49; $193.70/month Catamaran Storage $69.16/month Kayak Rack Storage $65.03/month Additional Fees Gate, Restroom, Shower Key $20 (non-refundable for first 3)/$80 (non-refundable for 4+) Unattended Electrical Use $38 for 30 AMP/$54 for 50 AMP Annual Waiting List $125/year Annual Slip Leave Option $300/year Other Fees $250 application fee; Monthly Per Person Cost (age 16 and older): $135; Monthly Variable Utilities Fee: Liveaboard Fees 30% of Slip Rent Liveaboard privileges are subject to Harbormaster approval and will not be granted to individuals possessing a temporary one-year slip license agreement. A $250 application fee is required for all liveaboard applications. Pets are not permitted to liveaboard. Monthly Partnership Fee: 1 Partner 5% of Slip Rent 2 Partners 10% of Slip Rent Partnership Fee 3 Partners 15% of Slip Rent Vessels held in partnerships or limited liability companies are acceptable as long as the original slip licensee remains financially involved, and personally active in the vessel. Harbormaster approval is required before transferring a vessel into a partnership or limited liability company. Monthly Sublease Fee: South Harbor: 30% of Slip Rent; North Harbor: 15% of Slip Rent Sublease Fee Slip licensees are permitted to enter into a sublease agreement for their slip for a maximum period of up to six months. If a sublease agreement is made, both parties must register with the harbor office. The regular slip licensee will be billed monthly as usual and will remain responsible for all bad debts. A late fee of $25 is assessed on balances due after the 20th of each month. Late Fees & Interest Charges Interest in the amount of .833% is assessed to all outstanding balances on the last day of each month. The late fee and interest amounts charged are established and may be changed from time to time by the Port District and as published on the Port District’s fee schedule. Santa Cruz Port District Service & Sphere Review Page 8 of 30 Santa Cruz Harbor Patrol The Harbor Patrol, with the assistance of contract operators, currently provides security and enforcement of Port District ordinances, California Harbors and Navigation Codes, and Penal and Vehicle Codes. Deputy Harbormasters provide site security and traffic control, make arrests, prepare incident reports and provide mutual aid response to other law enforcement agencies if requested. In addition to law enforcement duties, Deputy Harbormasters perform vessel search and rescue services, and a wide range of program management and customer services. In FY 2022-23, 8 full-time employees were assigned to Harbor Patrol with a budget of approximately $807,000. Staffing levels have remained static under the current fiscal year (FY 2024-25). The District has 8 full-time employees assigned in this program with a current budget of approximately $884,000. The County of Santa Cruz does not maintain its own marine search and rescue unit, and instead relies on the Santa Cruz Harbor Patrol vessel and crew to provide first responder marine search and rescue services within the County’s jurisdiction. Rescues performed are conducted under the Coastal Incident Response Plan in coordination with City, County and State resources. The County of Santa Cruz provides financial support for the Rescue Services and Harbor Patrol programs which was increased in the County’s 2019- 20 budget from approximately $24,000 per year to $50,000 per year. The United States Coast Guard staffs its Santa Cruz station in the harbor on various weekends between Memorial Day and Labor Day. The Harbor Patrol and Coast Guard coordinate joint efforts on those days. Marina Management Deputy Harbormaster and Operations staff manage and assigns berths and dry storage space, monitors docks and dry storage areas for safety, staff the front counter 362 days per year, administer invoicing and payment processes, monitor vessel use and confirm current registration, perform vessel serviceability checks and electrolysis checks on an as needed basis, manage the wait list, develop delinquency reports, conduct lien sales, and provide customer service. In FY 2022-23, 1.5 full-time employees were assigned to Marina Management with a budget of approximately $543,000. Staffing has remained static under the current fiscal year (FY 2024-25). The District has 1.5 full-time employees assigned in this program with a current budget of approximately $633,000. Rescue Services Rescue services are provided by the Harbor Patrol aboard two patrol vessels. Vessel maintenance and harbor patrol staffing for the marine search and rescue program are funded out of two budget programs: Harbor Patrol and Rescue Services. As noted above, the County of Santa Cruz provides annual financial support for this program. The Port District had previously contracted with the City of Santa Cruz to provide staffing and oversight of the Harbor Beach lifeguard program. The Port District presently contracts with State Parks to provide lifeguard service. In FY 2022-23, full-time harbor patrol staff provided oversight and administration of the Rescue Services program with a budget of approximately $108,000. Staffing has remained static under the current fiscal year (FY 2024-25), with harbor patrol staff providing oversight of this program with a budget of approximately $154,000. Santa Cruz Port District Service & Sphere Review Page 9 of 30 Parking Services Parking services encompass year-round staffing of the concession parking lot serving 2222 East Cliff Drive, the Crow’s Nest and its Beach Market (Café el Palomar), the SUP Shack and Harbor Beach; beach parking permit sales; slip licensee and employee parking permits; launch ramp parking and permits; water taxi and shuttle van services, and parking ordinance enforcement. Revenues from parking meters, pay stations, permit sales and concession lot receipts are used to fund parking services. In FY 2022-23, the equivalent of 1.5 full-time employees were assigned to Parking Services with a budget of approximately $389,000, and up to 20 part-time, seasonal personnel as well. Under the current fiscal year (FY 2024-25), the District has the equivalent 1.5 full-time employees assigned in this program and up to 20 part-time, seasonal personnel with a budget of approximately $409,000. Fuel Services The Port District took over operation and maintenance of the harbor’s only fuel dock in July 2010. The program is managed by the Deputy Harbormaster staff. Recurring program costs include full and part-time staff, fuel purchases, taxes, storage tank fees, maintenance and insurance, inspections, training, regulatory compliance and spill prevention equipment and supplies. In FY 2022-23, full and part-time employees were assigned to Fuel Services with a budget of approximately $806,000. Under the current fiscal year (FY 2024-25), the District has the equivalent of 5 full-time employees assigned in this program with a budget of approximately $523,000. Events This program is jointly managed by the District’s Operations and Administrative Department, and comprises permitting, transportation and security for special events such as the Crow’s Nest Thursday night beach barbecues, beach volleyball tournaments, regattas, and other community events. In FY 2022-23, the equivalent of .4 full-time employees were assigned to Events with a budget of approximately $23,000. Under the current fiscal year (FY 2024-25), the District has the equivalent of .4 full-time employees assigned in this program with a budget of approximately $34,000. Santa Cruz Harbor Boatyard The Port District took over operation and maintenance of the boatyard on February 1, 2014 and opened on April 7, 2014 as a Do‐It‐Yourself (DIY) facility. Boaters may perform their own work or hire contractors from a list of registered contractors authorized to work in the yard. Recurring program costs include staff, fuel purchases, taxes, storage tank fees, inspections, permitting and environmental compliance, spill prevent equipment, supplies, stormwater filtration costs, and equipment maintenance. In FY 2022-23, 2 full- time and 1 part-time employees were assigned to the Harbor Boatyard with a budget of approximately $365,000. Staffing has remained static under the current fiscal year (FY 2024-25). The District has 2 full-time and 1 part-time employees assigned in this program with a budget of approximately $431,000. Santa Cruz Port District Service & Sphere Review Page 10 of 30 Population and Growth The Association of Bay Area Governments (ABAG) and the Association of Monterey Bay Area Governments (AMBAG) provide population projections for cities and counties in the Coastal Region. In general, the Coastal Region is anticipated to have a slow growth over the next twenty years. Based on this slow growth trend, the population for unincorporated lands is expected to increase by 0.86% and 5.18% for the City of Santa Cruz. While official growth projections are not available for special districts, the population for the City of Santa Cruz, which is located within SCPD, was estimated to be around 64,000 in 2020. Based on staff’s analysis, the population of SCPD in 2020 was approximately 99,000. Table D shows the anticipated population within SCPD. Population Projection Based on the projections for Santa Cruz County, LAFCO was able to develop a population forecast for the Santa Cruz Port District. LAFCO staff increased the District’s 2020 population amount by 3.34% each year: the average between the growth rate for the County (0.86%) and the City (5.18%). Under this assumption, our projections indicate that the entire population of SCPD will be approximately 113,000 by 2040. Table D: Projected Population Average Rate 2020 2025 2030 2035 2040 of Change Santa Cruz County 136,891 137,896 139,105 140,356 141,645 0.86% (unincorporated area) City of Santa Cruz 64,424 68,845 72,218 75,257 78,828 5.18% Santa Cruz 98,945 101,964 106,072 109,193 112,853 3.34% Port District Disadvantaged Unincorporated Communities State law requires LAFCO to identify and describe all “disadvantaged unincorporated communities” (DUCs) located within or contiguous to the existing spheres of influence of cities and special districts that provide fire protection, sewer, and/or water services. DUCs are defined as inhabited unincorporated areas with an annual median household income that is 80% or less than the statewide annual median household income. In 2020, the California statewide annual median household income was $78,672, and 80% of that was $62,938. LAFCO staff utilized the ArcGIS mapping program to locate potential DUCs in Santa Cruz County. It is important to note that the Santa Cruz Port District is not subject to SB 244 because it does not provide water, sewer, or fire service, and therefore, no further analysis is required. Santa Cruz Port District Service & Sphere Review Page 11 of 30 FINANCES This section will highlight the District’s financial performance during the most recent fiscal years. Fiscal Year 2022-23 is the latest audited financial statement available. LAFCO evaluated the District’s financial health from 2013 to 2022. A comprehensive analysis of SCPD’s financial performance during the past 10 years is shown in Tables G and H on pages 17-18. At the end of Fiscal Year 2022-23, total revenue collected was approximately $15 million, representing a 21% increase from the previous year ($12 million in FY 21- 22). Total expenses for FY 2022-23 were approximately $11.2 million, which increased from the previous year by 1% ($11 million in FY 20-21). SCPD has ended with a surplus each year for the past decade, as shown in Figure 2. LAFCO staff believes this positive trend may continue as the District mostly relies on charges for services rather than property taxes or other stagnant revenue streams. $14,482,681 Santa Cruz Port District Service & Sphere Review Page 12 of 30 992,566,01$ 838,433,9$ 467,710,9$ 163,378,9$ 697,412,01$ 090,555,01$ 083,990,01$ 405,533,21$ $14,950,486 787,848,7$ 922,138,7$ 898,768,7$ 922,748,8$ 138,139,8$ 358,912,9$ 354,496,9$ 042,965,9$ 063,170,11$ 432,451,11$ Figure 2: Statement of Revenues & Expenditures $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) Total Revenue Total Expenditure Operating and Non-Operating Revenue Operating Revenue The Santa Cruz Port District’s primary source of revenue is from Charges for Berthing & Services. The rates for berthing and other harbor-related services are reviewed annually, and any proposed increases are approved through a public process. In FY 2022-23, Charges for Berthing and Services totaled $9 million, representing approximately 61% of the total revenue stream for that fiscal year. Earnings in Rent and Concessions were estimated at $2 million, representing 14% of total revenue in FY 2022-23. Overall, operating revenue represents 75% of the District’s entire revenue stream. Table E highlights the operating revenue funds for FY 2022-23. Non-Operating Revenue In FY 2022-23, the District collected approximately $3.8 million in non-operating revenue. Non-cash pension income ($1 million), grants related to the 2022 tsunami damage ($887,000), and dredging reimbursement ($525,000) are the largest contributors to the non-operating revenue stream. Federal and state grants for the construction, acquisition, improvement of capital assets, or assistance for dredging costs are recorded as capital contributions. Revenues for reimbursement grants are recorded when allowable expenditures are made. Since 1986, the District has taken over responsibility for maintenance dredging of the federal entrance channel from the United States Army Corps of Engineers (Corps) under a Cooperative Agreement. In November 2015, the District entered into an agreement with the Corps to reimburse the District for a portion of the actual dredging costs, only if federal funds are specifically appropriated for that purpose. The agreement terminates on April 1, 2025. Due to the uncertainty of the availability of federal funding, reimbursement funds are recorded when received. Table E highlights the non-operating revenue funds for FY 2022-23. Table E: Fiscal Year 2022-23 Revenue Breakdown (audited data) Operating Revenues: ($) (%) Charges for Berthing & Services $9,060,943 60.61% Rent & Concessions $2,111,024 14.12% Non-Operating Revenues: County Revenues for Public Services $50,000 0.33% Grants $32,393 0.22% Grants (Tsunami Damage) $887,363 5.94% Dredging Reimbursement $525,000 3.51% Interest Income $668,274 4.47% Non-Cash Pension Income $1,010,262 6.76% Other Income $605,227 4.05% Total Revenue $14,950,486 100.00% Santa Cruz Port District Service & Sphere Review Page 13 of 30 Operating and Non-Operating Expenditure Operating Expenditure Total expenditure for FY 2022-23 was approximately $11 million. Operating expenditures represent 96% of the District’s total expenditure with Depreciation & Amortization ($2.2 million), and Dredging Operations ($1.5 million) being the top two expenses. The remaining operating expenditures include but are not limited to grounds maintenance, administrative services, harbor patrol, boatyard operations, rescue services, and capital projects. Figure 3 outlines all operating expenditures for FY 2022-23. Non-Operating Expenditure In FY 2022-23, the District’s non-operating expenditure only included two expense categories: Tsunami Expense ($10,500) and Interest Expense ($394,000). It is important to note that the District previously experienced tsunami expenses totaling $28,000 and $17,000 in FY 2015-16 and FY 2016-17 respectively to address the aftermath of the 2011 tsunami. In 2022, tsunami damages and expenses again affected the District’s operation, services, and infrastructure. An analysis of the tsunami and other natural disasters will be discussed later in the report. Figure 3: Expenditure Line Items Capital Projects $36 Tsunami Expense $10,486 Ice Production/Fishery Support $12,014 Events $22,570 Aeration Program $37,456 Port Commission Support $55,713 Non-Cash OPEB Liability $95,254 Utilites Maintenance $103,385 Rescue Services $107,898 Environmental & Permitting $145,693 Finance & Purchasing $184,083 Boatyard Operations $364,793 Building Maintenance $387,540 Parking Services $388,936 Interest Expense $394,410 Docks, Piers, Marine Structures $502,201 Marina Management $542,949 Property Management $686,549 Fuel Services $805,610 Harbor Patrol $806,715 Administrative Services $902,926 Grounds Maintenance $909,106 Dredging Operations $1,503,071 Depreciation and Amortization $2,184,840 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Santa Cruz Port District Service & Sphere Review Page 14 of 30 Assets & Liabilities District Assets As of March 31, 2023, the District has approximately $66 million in total assets. This represents an increase of approximately $16 million or 31% from FY 2021-22’s total assets of $52 million. Total assets can be categorized into three types: Current Assets, Restricted Assets, and Capital Assets. In FY 2022-23, current assets were approximately $16 million, restricted assets were approximately $1 million, and capital assets were approximately $49 million (less accumulated depreciation). As shown in Figure 4, capital assets represent 74% of total assets. Figure 4: Total Assets (FY 2022-23) Current Assets $16,053,582 (24%) Capital Assets Restricted Assets $48,651,443 (74%) $1,029,556 (2%) District Liabilities As of March 31, 2023, the District had approximately $19 million in total liabilities. This represents an increase of $1.1 million or 6% from FY 2021-22’s total liabilities of $18 million. Total liabilities can be categorized into three types: Current Liabilities, Long-term Debt, and Other Long-term Liabilities. In FY 2022-23, current liabilities were approximately $3 million, long-term debts were approximately $9.6 million, and other long-term liabilities were approximately $6 million. As shown in Figure 5, long-term debt represents 51% of total liabilities. Figure 5: Total Liabilities (FY 2022-23) Current Liabilities $2,978,914 (16%) Other Long-term Liabilities $6,224,972 (33%) Long-Term Debt $9,549,108 (51%) Santa Cruz Port District Service & Sphere Review Page 15 of 30 Fund Balance / Net Position As of March 31, 2023, the total fund balance projection was approximately $35 million. The following table highlights the Fund Balance from 2015 to 2020. As Table F shows below, the District has experienced an increase in total reserves each year. On average, total reserves has increased by approximately $1.6 million or 5% since FY 2018-19. Table F: Fund Balance / Net Position FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 (Audited) (Audited) (Audited) (Audited) (Audited) Net Position $28,714,311 $29,574,948 $30,105,088 $31,369,232 $35,165,484 Change ($) $860,637 $530,140 $1,264,144 $3,796,252 Change (%) 3% 2% 4% 12% Reserve funds are not available for use to offset any expenditures that exceed total appropriations. Reserve funds may only be used as approved by the Port Commission. Intended uses and timeframes for reserve funds are summarized as follows: • Dredge Fund: Funding for dredge equipment and maintenance needs is authorized by the Port Commission as part of the annual budget. Annual spending may fully extinguish the fund balance, or result in a carryover, reducing funding requirements the following year. • Reserve Fund: Intended to strengthen the financial stability of the District against economic uncertainty, unexpected situations such as natural or man-made disasters, unanticipated drop in revenues, and other unforeseen emergencies or extraordinary circumstances. There is no specified timeframe for expenditure of reserve funds. The Port District strives to hold in reserve an amount equal to 25% of the District's annual operating expenses in the current fiscal year's adopted general budget, though the reserve fund balance may fluctuate. • Capital Improvement Fund: Funding for capital improvement projects identified in the 5-Year Capital Improvement Plan (CIP), which is reviewed and adopted each year by the Port Commission as part of the annual budget. The timeframe for project-related expenditures is prioritized by the Port Commission as part of the CIP review and adoption. • Election Fund: Funding is set aside as part of the annual budget adoption to pay the estimated biennial costs billed by the County for Port Commission election costs. • PNC Reserve Restricted Fund: Restricted reserve fund to satisfy debt covenant requirements of its long-term debt financing with PNC Bank (previously BBVA). Santa Cruz Port District Service & Sphere Review Page 16 of 30 Table G – Total Revenues & Expenditures Santa Cruz Port District - Financial Review (Fiscal Years 2013-14 to 2022-23) FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) REVENUE Operating Revenues: Charges for Berthing and Services $ 6 ,323,993 $ 6,767,201 $ 6 ,898,905 $ 6 ,799,847 $ 7,181,501 $ 7,372,983 $ 7 ,920,084 $ 7 ,886,323 $ 8,864,120 $ 9,060,943 Rent and Concessions $ 1,642,193 $ 1 ,644,354 $ 1 ,732,017 $ 1 ,694,869 $ 1 ,889,238 $ 1 ,838,345 $ 1 ,893,576 $ 1 ,635,555 $ 2,023,819 $ 2 ,111,024 Sub-total $ 7 ,966,186 $ 8,411,555 $ 8 ,630,922 $ 8 ,494,716 $ 9,070,739 $ 9,211,328 $ 9 ,813,660 $ 9 ,521,878 $ 10,887,939 $ 11,171,967 Non-Operating Revenues: County Revenues for Public Services $ 12,493 $ 37,478 $ 2 4,985 $ 11,243 $ 36,228 $ 12,493 $ 49,985 $ 50,000 $ 50,000 $ 50,000 Grants $ 364,066 $ 10,702 $ 11,164 $ 65,560 $ 140,189 $ 111,403 $ 37,826 $ 23,801 $ 619,189 $ 32,393 Grants recognized (related to tsunami damage) $ 6 ,055,067 $ 2,086,757 $ - $ - $ - $ - $ - $ - $ - $ 887,363 OE3 Pension Liability Settlement Adjustment $ - $ 100,447 $ - $ - $ - $ - $ - $ - $ - $ - Dredging Reimbursement $ - $ - $ 591,000 $ 400,000 $ 485,000 $ 449,000 $ 385,000 $ 385,000 $ 665,000 $ 525,000 Interest Income $ 31,681 $ 18,360 $ 3 0,007 $ 46,245 $ 96,293 $ 242,056 $ 265,810 $ 80,131 $ 30,375 $ 228,918 Interest Income on Leases $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 439,356 Non-cash Pension Income $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,010,262 Other Income $ 5 3,188 $ - $ 4 6,760 $ - $ 4 4,912 $ 1 88,516 $ 2 ,809 $ 38,570 $ 8 3,001 $ 6 05,227 Sub-total $ 6 ,516,495 $ 2 ,253,744 $ 7 03,916 $ 5 23,048 $ 8 02,622 $ 1 ,003,468 $ 7 41,430 $ 5 77,502 $ 1 ,447,565 $ 3 ,778,519 Total Revenue $1 4,482,681 $1 0,665,299 $ 9 ,334,838 $ 9 ,017,764 $ 9 ,873,361 $1 0,214,796 $1 0,555,090 $1 0,099,380 $1 2,335,504 $1 4,950,486 EXPENDITURE Operating Expenses: Depreciation and Amortization $ 1 ,430,269 $ 1,722,204 $ 1 ,647,651 $ 1 ,781,839 $ 1,824,754 $ 1,830,080 $ 1 ,954,934 $ 2 ,159,280 $ 2,187,657 $ 2,184,840 Dredging Operations $ 819,751 $ 852,520 $ 1 ,029,556 $ 1 ,259,287 $ 1,234,002 $ 1,232,182 $ 1 ,369,670 $ 1 ,357,222 $ 1,324,630 $ 1,503,071 Grounds Maintenance $ 578,337 $ 584,124 $ 590,664 $ 656,439 $ 633,063 $ 750,251 $ 727,772 $ 733,457 $ 790,109 $ 909,106 Administrative Services $ 607,274 $ 623,503 $ 784,443 $ 1 ,016,517 $ 632,156 $ 653,783 $ 759,880 $ 753,848 $ 663,892 $ 902,926 Harbor Patrol $ 498,556 $ 573,539 $ 581,583 $ 621,569 $ 627,790 $ 641,569 $ 683,549 $ 669,826 $ 712,258 $ 806,715 Marina Management $ 385,748 $ 341,554 $ 366,449 $ 461,217 $ 492,804 $ 544,303 $ 434,290 $ 483,428 $ 495,234 $ 542,949 Non-Cash Pension Liability $ - $ - $ - $ - $ 4 89,486 $ 313,404 $ 338,085 $ 190,116 $ 805,728 $ - Property Management $ 412,992 $ 401,920 $ 430,550 $ 429,040 $ 403,528 $ 474,209 $ 480,408 $ 515,497 $ 669,573 $ 686,549 Parking Services $ 303,391 $ 281,834 $ 294,859 $ 345,904 $ 360,565 $ 357,156 $ 341,396 $ 248,637 $ 352,771 $ 388,936 Fuel Services $ 554,830 $ 472,246 $ 342,096 $ 331,742 $ 350,664 $ 413,682 $ 536,061 $ 427,765 $ 740,950 $ 805,610 Docks, Piers, Marine Structures $ 219,302 $ 208,181 $ 206,915 $ 263,642 $ 317,187 $ 270,617 $ 237,013 $ 269,258 $ 320,346 $ 502,201 Building Maintenance $ 311,959 $ 237,033 $ 223,292 $ 238,023 $ 259,087 $ 322,642 $ 323,550 $ 323,175 $ 321,331 $ 387,540 Boatyard Operations $ 64,561 $ 280,911 $ 216,665 $ 239,953 $ 221,938 $ 254,419 $ 274,979 $ 303,551 $ 326,087 $ 364,793 Finance & Purchasing $ 180,263 $ 178,125 $ 170,536 $ 170,809 $ 165,863 $ 170,690 $ 181,208 $ 194,674 $ 183,581 $ 184,083 Environmental & Permitting $ 116,999 $ 147,984 $ 162,413 $ 156,750 $ 131,817 $ 143,423 $ 174,318 $ 139,893 $ 95,646 $ 145,693 Utilities Maintenance $ 102,937 $ 98,475 $ 104,864 $ 84,314 $ 107,964 $ 87,508 $ 85,665 $ 86,067 $ 97,358 $ 103,385 Rescue Services $ 91,876 $ 66,713 $ 6 7,005 $ 90,519 $ 97,308 $ 95,508 $ 99,549 $ 84,414 $ 104,968 $ 107,898 Port Commission Support $ 36,029 $ 39,303 $ 3 9,306 $ 50,183 $ 48,164 $ 45,923 $ 52,156 $ 56,586 $ 107,746 $ 55,713 Aeration Program $ 99,678 $ 80,991 $ 3 9,944 $ 42,498 $ 44,900 $ 36,840 $ 38,467 $ 40,795 $ 49,913 $ 37,456 Events $ 26,392 $ 64,171 $ 2 6,359 $ 32,531 $ 32,313 $ 30,682 $ 30,440 $ - $ 1 3,111 $ 22,570 Capital Projects $ 32,600 $ 8,581 $ 2,453 $ 1,024 $ 9 ,716 $ 1 ,022 $ 6,812 $ 1 ,630 $ 54 $ 36 Debt Issuance Costs $ 193,568 $ - $ - $ - $ - $ - $ - $ - $ - $ - Non-Cash OPEB Liability $ - $ - $ - $ - $ - $ 70,313 $ 67,186 $ 81,221 $ 101,318 $ 95,254 Ice Production/Fishery Support $ 17,418 $ 6,783 $ 3 ,495 $ 5,042 $ 2 ,452 $ 2 ,762 $ 5 ,680 $ 5,064 $ 8 ,588 $ 1 2,014 Sub-total $ 7 ,084,730 $ 7,270,695 $ 7 ,331,098 $ 8 ,278,842 $ 8,487,521 $ 8,742,968 $ 9 ,203,068 $ 9 ,125,404 $ 10,472,849 $ 10,749,338 Non-Operating Expenses: Tsunami Expense $ - $ - $ 27,864 $ 17,088 $ - $ - $ - $ - $ 1 87,859 $ 10,486 Interest Expense $ 764,057 $ 558,591 $ 508,936 $ 476,817 $ 444,310 $ 476,885 $ 491,385 $ 443,836 $ 410,652 $ 394,410 Other Expense $ - $ 1,943 $ - $ 7 4,482 $ - $ - $ - $ - $ - $ - Sub-total $ 764,057 $ 560,534 $ 536,800 $ 568,387 $ 444,310 $ 476,885 $ 491,385 $ 443,836 $ 598,511 $ 404,896 Total Expenditure $ 7,848,787 $ 7 ,831,229 $ 7 ,867,898 $ 8 ,847,229 $ 8 ,931,831 $ 9 ,219,853 $ 9 ,694,453 $ 9 ,569,240 $1 1,071,360 $1 1,154,234 Surplus/(Deficit) $ 6 ,633,894 $ 2,834,070 $ 1 ,466,940 $ 170,535 $ 941,530 $ 994,943 $ 860,637 $ 530,140 $ 1,264,144 $ 3,796,252 Net Position - Beginning Balance $ 18,136,699 $ 24,770,593 $ 25,416,357 $ 26,883,297 $ 27,053,832 $2 7,719,368 $ 28,714,311 $ 29,574,948 $ 30,105,088 $ 31,369,232 Net Position - Ending Balance $ 24,770,593 $ 27,604,663 $ 26,883,297 $ 27,053,832 $ 27,995,362 $2 8,714,311 $ 29,574,948 $ 30,105,088 $ 31,369,232 $ 35,165,484 Santa Cruz Port District Service & Sphere Review Page 17 of 30 Table H – Total Assets & Liabilities Santa Cruz Port District - Assets & Liabilities (Fiscal Years 2013-14 to 2022-23) FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) CURRENT ASSETS Cash and Cash Equivalents $ 8,330,788 $ 8,712,223 $ 7,969,968 $ 7,952,713 $ 9,737,760 $ 13,095,489 $ 10,070,823 $ 10,991,416 $ 12,526,327 $ 14,712,539 Trade Receivables $ 132,762 $ 176,018 $ 177,408 $ 148,668 $ 138,015 $ 110,480 $ 245,550 $ 180,128 $ 193,065 $ 370,963 Grants Receivables $ 108,188 $ 9 ,356 $ 9 ,356 $ 39,776 $ 129,666 $ 48,639 $ - $ - $ - $ - Interest Receivable $ 4 ,668 $ - $ - $ - $ 32,411 $ 75,887 $ 48,223 $ 10,841 $ 8 ,896 $ 90,362 Interest Receivable, Leases $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 36,735 Inventory $ - $ - $ - $ 4 ,597 $ 7 ,256 $ 6 ,944 $ 10,263 $ 8 ,781 $ 16,324 $ 15,832 Lease Receivable $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 704,378 CalEMA Receivable $ 3,331,369 $ 2,392,054 $ 1,328,812 $ - $ 51,916 $ - $ - $ - $ - $ - Prepaid Expenses $ 23,522 $ 28,476 $ 33,469 $ - $ - $ 27,784 $ 34,577 $ 45,562 $ 91,525 $ 122,773 Total Current Assets $ 11,931,297 $ 11,318,127 $ 9,519,013 $ 8,145,754 $ 10,097,024 $ 13,365,223 $ 10,409,436 $ 11,236,728 $ 12,836,137 $ 16,053,582 RESTRICTED ASSETS Cash and Cash Equivalents $ 3,350,140 $ 706,444 $ 725,384 $ 725,685 $ 726,601 $ 1,015,386 $ 1,016,571 $ 1,017,050 $ 1,017,008 $ 1,029,556 Total Restricted Assets $ 3,350,140 $ 706,444 $ 725,384 $ 725,685 $ 726,601 $ 1,015,386 $ 1,016,571 $ 1,017,050 $ 1,017,008 $ 1,029,556 CAPITAL ASSETS Lease Receivable, Net of Current $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 13,210,399 Nondepreciable Assets: Land $ 1,349,360 $ 1,349,360 $ 1,349,360 $ 1,349,360 $ 1,349,360 $ 1,349,360 $ 1,349,360 $ 1,349,360 $ 2,201,360 $ 2,201,360 Construction in Progress $ 2,775,421 $ 3,152,161 $ 3,581,567 $ 484,401 $ 605,977 $ 874,128 $ 3,197,517 $ 570,268 $ 574,372 $ 998,052 Depreciable Assets: Structures and Improvements $ 26,401,652 $ 26,546,747 $ 29,244,137 $ 29,336,818 $ 29,405,675 $ 29,477,120 $ 29,668,008 $ 30,057,168 $ 30,705,762 $ 30,720,555 Docks $ 19,502,369 $ 21,562,506 $ 21,562,506 $ 21,562,506 $ 21,562,506 $ 22,600,115 $ 24,113,526 $ 27,023,464 $ 27,122,552 $ 27,161,298 Equipment $ 6,362,594 $ 6,518,939 $ 6,999,115 $ 10,977,716 $ 10,873,439 $ 11,335,516 $ 11,864,219 $ 10,884,518 $ 11,510,070 $ 11,361,555 Office Equipment $ 110,452 $ 138,565 $ 134,833 $ 140,960 $ 140,960 $ 153,680 $ 153,680 $ 73,114 $ 63,621 $ 54,374 Sub-total $ 56,501,848 $ 59,268,278 $ 62,871,518 $ 63,851,761 $ 63,937,917 $ 65,789,919 $ 70,346,310 $ 69,957,892 $ 72,177,737 $ 85,707,593 Less Accumulated Depreciation $ 23,723,951 $ 25,329,848 $ 26,945,428 $ 27,203,247 $ 28,746,000 $ 30,532,350 $ 32,425,173 $ 33,304,731 $ 35,269,591 $ 37,056,150 Total Capital Assets $ 32,777,897 $ 33,938,430 $ 35,926,090 $ 36,648,514 $ 35,191,917 $ 35,257,569 $ 37,921,137 $ 36,653,161 $ 36,908,146 $ 48,651,443 TOTAL ASSETS $ 48,059,334 $ 45,963,001 $ 46,170,487 $ 45,519,953 $ 46,015,542 $ 49,638,178 $ 49,347,144 $ 48,906,939 $ 50,761,291 $ 65,734,581 Deferred Outflows of Resources Deferred Amount from Pension Plans $ 56,292 $ - $ 656,139 $ 1,129,715 $ 1,242,383 $ 948,686 $ 927,507 $ 897,876 $ 829,012 $ 2,146,081 Deferred Amount from OPEB Plans $ - $ - $ - $ - $ - $ 3 ,883 $ 10,797 $ 174,391 $ 207,298 $ 191,486 Total Deferred Outflows of Resources $ 56,292 $ - $ 656,139 $ 1,129,715 $ 1,242,383 $ 952,569 $ 938,304 $ 1,072,267 $ 1,036,310 $ 2,337,567 TOTAL ASSETS AND DEFERRED OUTFLOW OF RESOURCES $ 48,115,626 $ 45,963,001 $ 46,826,626 $ 46,649,668 $ 47,257,925 $ 50,590,747 $ 50,285,448 $ 49,979,206 $ 51,797,601 $ 68,072,148 CURRENT LIABILITIES Accounts Payable and Accrued Expenses $ 656,922 $ 296,249 $ 247,820 $ 186,999 $ 286,052 $ 395,293 $ 169,131 $ 213,884 $ 300,949 $ 316,941 Accrued Interest $ 198,370 $ 113,906 $ 106,610 $ 99,012 $ 91,117 $ 101,615 $ 92,380 $ 82,466 $ 72,508 $ 62,257 Payroll Liabilities $ 174,606 $ 188,124 $ 259,146 $ 310,493 $ 315,187 $ 219,891 $ 210,982 $ 229,613 $ 239,105 $ 284,338 Line of Credit $ 511,629 $ - $ - $ - $ - $ - $ - $ - $ - $ - Current Portion of Long-term Debt $ 3,452,851 $ 949,245 $ 982,015 $ 1,015,120 $ 1,048,837 $ 1,254,451 $ 1,299,163 $ 1,274,163 $ 1,329,940 $ 1,366,974 Current Portion of Unearned Revenue $ 66,544 $ 66,544 $ 66,544 $ 66,544 $ 66,544 $ 66,544 $ 66,544 $ 66,544 $ 66,544 $ 278,546 Tsunami CalEMA Advance Liability $ 422,550 $ 422,550 $ - $ - $ - $ - $ - $ - $ - $ - Prepaid Slip Rents $ 137,377 $ 159,474 $ 167,629 $ 154,165 $ 181,220 $ 189,780 $ 191,985 $ 258,639 $ 251,346 $ 246,859 Deposits $ 354,392 $ 401,429 $ 388,002 $ 414,913 $ 437,363 $ 431,179 $ 438,411 $ 445,946 $ 455,603 $ 422,999 Total Current Liabilities $ 5,975,241 $ 2,597,521 $ 2,217,766 $ 2,247,246 $ 2,426,320 $ 2,658,753 $ 2,468,596 $ 2,571,255 $ 2,715,995 $ 2,978,914 LONG-TERM DEBT Long-term Debt, less current portion $ 16,478,578 $ 14,963,538 $ 13,981,522 $ 12,965,317 $ 11,917,360 $ 13,858,644 $ 12,563,188 $ 11,292,731 $ 10,912,376 $ 9,549,108 Total Long-Term Debt $ 16,478,578 $ 14,963,538 $ 13,981,522 $ 12,965,317 $ 11,917,360 $ 13,858,644 $ 12,563,188 $ 11,292,731 $ 10,912,376 $ 9,549,108 OTHER LONG-TERM LIABILITIES Unearned Revenue, less current portion $ 848,436 $ 781,892 $ 715,348 $ 648,804 $ 582,260 $ 515,718 $ 449,174 $ 382,630 $ 316,086 $ - Net OPEB Liability $ - $ - $ - $ - $ - $ 484,557 $ 483,228 $ 728,518 $ 776,506 $ 807,791 Net Pension Liability $ - $ - $ 2,745,051 $ 3,509,957 $ 4,052,992 $ 3,990,879 $ 4,338,392 $ 4,674,819 $ 2,908,996 $ 5,417,181 Total Other Long-term Liabilities $ 848,436 $ 781,892 $ 3,460,399 $ 4,158,761 $ 4,635,252 $ 4,991,154 $ 5,270,794 $ 5,785,967 $ 4,001,588 $ 6,224,972 TOTAL LIABILITIES $ 23,302,255 $ 18,342,951 $ 19,659,687 $ 19,371,324 $ 18,978,932 $ 21,508,551 $ 20,302,578 $ 19,649,953 $ 17,629,959 $ 18,752,994 DEFERRED INFLOW OF RESOURCES Tsunami CalEMA deferred admin allowance $ 42,778 $ 15,387 $ 10,419 $ - $ - $ - $ - $ - $ - $ - Deferred Amounts from OPEB $ 2 ,434 $ 73,078 $ 65,263 $ 136,821 $ 165,758 Deferred Amounts from Leases / Rent $ - $ - $ 56,250 $ - $ - $ - $ - $ - $ - $ 13,527,701 Deferred Amounts from Pension Plans $ - $ - $ 216,973 $ 224,512 $ 283,631 $ 365,451 $ 334,844 $ 158,902 $ 2,661,589 $ 460,211 Total Deferred Inflows of Resources $ 42,778 $ 15,387 $ 283,642 $ 224,512 $ 283,631 $ 367,885 $ 407,922 $ 224,165 $ 2,798,410 $ 14,153,670 NET POSITION Net Investment in Capital Assets $ 11,931,488 $ 17,177,211 $ 20,180,661 $ 21,952,729 $ 21,576,916 $ 19,562,212 $ 23,543,068 $ 23,637,093 $ 24,283,200 $ 24,246,416 Restricted for Debt Service $ 3,350,140 $ 706,444 $ 725,384 $ 725,685 $ 726,601 $ 1,015,386 $ 1,016,571 $ 1,017,050 $ 1,017,008 $ 1,029,556 Unrestricted $ 9,488,965 $ 9,721,008 $ 5,977,252 $ 4,375,418 $ 5,691,845 $ 8,136,713 $ 5,015,309 $ 5,450,945 $ 6,069,024 $ 9,889,512 Total Net Position $ 24,770,593 $ 27,604,663 $ 26,883,297 $ 27,053,832 $ 27,995,362 $ 28,714,311 $ 29,574,948 $ 30,105,088 $ 31,369,232 $ 35,165,484 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION $ 48,115,626 $ 45,963,001 $ 46,826,626 $ 46,649,668 $ 47,257,925 $ 50,590,747 $ 50,285,448 $ 49,979,206 $ 51,797,601 $ 68,072,148 Santa Cruz Port District Service & Sphere Review Page 18 of 30 GOVERNANCE Legal Authority The Santa Cruz Port District is governed by the California Harbors and Navigation Code. Code Section 6290-6311 outlines the District’s powers, which include but are not limited to, the ability to acquire, purchase, takeover, construct, maintain, operate, develop, and regulate wharves, docks, warehouses, grain elevators, bunkering facilities, belt railroads, floating plants, lighterage, lands, towage facilities, and any and all other facilities, aids, or public personnel, incident to, or necessary for, the operation and development of ports, waterways, and the district. In 1987, following the enactment of Senate Bill 947, the California Harbors and Navigation Code also added specific language for the Santa Cruz Port District: “The Legislature finds and declares that this section is necessary to meet a serious danger to the public safety within the Santa Cruz Port District caused by surfriding activities within the harbor entrance area (HNC 6302.5[a]). No person shall swim or surfride, or use any watercraft or device to surfride, on ocean waters within a harbor entrance area, as prescribed by the Santa Cruz Port District by ordinance (HNC 6302.5[b]). For the purposes of this section, "surfride" includes traveling to or from a surfriding staging area and activities in the staging area which are preparatory or preliminary to, or connected with, riding the surf (HNC 6302.5[c]). Every person who violates this section is guilty of a misdemeanor, and shall be punished by a fine not to exceed five hundred dollars (HNC 6302.5[d]).” Local Accountability & Structure The first port commissioners were elected in 1950. The five present commissioners are shown below. The chairmanship rotates annually. The commissioners do not receive financial compensation for their services. The District has transitioned from at-large to division-based elections, effective with the November 2024 election. Table I – Current Commissioners Commissioner Term of Office Years of Service: Reed Geisreiter 2022-2026 14 years (since 2009) Darren Gertler 2020-2024 8 years (since 2016) Toby Goddard 2022-2026 18 years (since 2006) Stephen Reed 2020-2024 12 years (since 2012) Dennis Smith 2020-2024 16 years (since 2008) The District is maintained under the direction of Holland MacLaurie, Port Director. The district office is staffed seven days a week, 24 hours per day. Current employees are staffed throughout three primary departments: (1) Administration, (2) Operations, and (3) Facilities Maintenance & Engineering. Regular meetings of the commission are scheduled for 5:30 p.m. on the fourth Tuesday of each month. Santa Cruz Port District Service & Sphere Review Page 19 of 30 Management Efficiencies As part of this service and sphere review, LAFCO staff analyzed the internal operations of the Santa Cruz Port District. The following is a summary of several key management efficiencies currently in place. Transition to District-Based Elections The Santa Cruz Port District has transitioned from at-large to district-based elections for its commissioners commencing with the General Election in November 2024. After a robust and deliberate public process, SCPD selected a final map indicating where the District’s boundary will be split into five geographic divisions (districts) for future elections. Appendix B illustrates the adopted division map. Voters within the identified divisions will vote only for candidates residing within the same division. Voters will not be able to vote for candidates outside of their own division. This transition was a result of multiple public hearings, outreach efforts, and extensive evaluation. More information about the entire transition process is available online: https://www.santacruzharbor.org/transition- to-district-based-elections Capital Improvement Plan In February 2024, the District adopted its latest 5‐Year Capital Improvement Plan (CIP). Appendix C provides a copy of the latest CIP Plan. The previous plan was adopted in 2019. The CIP is updated as part of each budget adoption cycle. Funding for the projects is derived primarily from the operating budget. CIP projects are budgeted and reported within the Capital Improvement Fund. The vast majority of expenses within the Capital Improvement Fund are capitalized upon project completion and include force account labor where applicable. The latest CIP lists projects for the current fiscal year (FY 2024-25) and provides capital needs forecasts extending out through 2028. The plan identifies over 30 different projects, which are assigned under one of six categories: (1) Docks, Piers & Marine Structures, (2) Buildings, (3) Landslide Infrastructure, (4) Utility Systems, (5) Planning Projects & Studies, and (6) Other/Miscellaneous. Table J showcases the anticipated costs for the capital improvement projects by category. Table J: Five-Year Capital Improvement Plan (Proposed Cost Breakdown) FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Total Docks, Piers & Structures $500,000 $155,000 $250,000 $585,000 $150,000 $1,640,000 Buildings $80,000 $365,000 $150,000 $165,000 $125,000 $885,000 Landside Infrastructure $125,000 $85,000 $100,000 $130,000 $80,000 $520,000 Utility Systems $280,000 $185,000 $220,000 $120,000 $90,000 $895,000 Planning Projects/Studies $95,000 $85,000 $110,000 $5,000 $5,000 $300,000 Misc. Projects $340,000 $212,000 $200,000 $12,000 - $764,000 Total Cost $1,420,000 $1,087,000 $1,030,000 $1,017,000 $450,000 $5,009,004 Website Requirements Senate Bill 929 was signed into law in September 2018 and requires all independent special districts to have and maintain a website by January 1, 2020. SB 929 identifies several components that must be found within an agency’s website. Additionally, the Special District Leadership Foundation (SDLF), an independent, non-profit organization formed to promote good governance and best practices among California’s special Santa Cruz Port District Service & Sphere Review Page 20 of 30 districts, has also outlined recommended website elements as part of its District Transparency Certificate of Excellence. This program was created as an effort to promote transparency in the operations and governance of special districts to the public. LAFCO conducted a thorough review of the District’s website based on SB 929’s criteria and the recommendations set by the SDLF. Table K summarizes staff’s findings on whether their website is meeting the statutory requirements. At present, SCPD meets all benchmarks. Overall, the District has a transparent website filled with useful information and resources that are easily accessible, which is why it has maintained its Certificate of Excellence from the Special District Leadership Foundation since 2016. Table K: Website Transparency Website Components Status (Yes = √) Required Items (SB 929 Criteria and SDLF Benchmarks) 1. Names and Contact Information of Board Members* √ 2. Board Member Term Limits √ 3. Names of Key Staff, including General Manager √ 4. Contact Information for Staff √ 5. Election/Appointment Procedure & Deadlines √ 6. Board Meeting Schedule* √ 7. Mission Statement √ 8. Description of District's Services/Functions and Service Area √ 9. Authorizing Statute/Enabling Act √ 10. Adopted District Budgets* √ 11. Financial Audits* √ 12. Archive of Board Meeting Agendas & Minutes* √ 13. Link to State Controller's Webpages for District's reported Board √ Member and Staff Compensation 14. Link to State Controller's Webpages for District's reported Financial √ Transaction Report 15. Reimbursement & Compensation Policy / Annual Policies √ 16. Home Page Link to Agendas/Board Packets √ 17. SB 272 - Compliance-Enterprise Catalogs √ 18. Machine Readable/Searchable Agendas √ 19. Recipients of Grant Funding or Assistance √ 20. Link or Copies of LAFCO’s Service & Sphere Reviews √ Total Score (out of a possible 20) 20 (100%) Santa Cruz Port District Service & Sphere Review Page 21 of 30 Marine Rescue Service Program The County of Santa Cruz has provided annual monetary support to the Santa Cruz Harbor’s marine rescue service since the early-1990’s. In 1991, the Port District, the County and City of Santa Cruz entered into a Joint Administrative Agreement which resulted in 45% of the Port District’s property tax funding being distributed to the County, while the remaining 55% went to the City of Santa Cruz. In exchange for the property tax redistribution, the two local agencies agreed to provide police, fire, traffic control, and street maintenance services within the harbor area. This agreement is automatically extended on an annual basis. While the annual funding contribution remained at $24,000 for many years, the County, in recognition of both its responsibility to provide services and the public benefits that derive from the Port District’s existing marine rescue service program, increased its annual contribution to $50,000 in 2019. The annual contribution has not been adjusted since that time. The Santa Cruz Harbor Patrol vessel and crew support other maritime emergency agencies and are an integral part of the County of Santa Cruz’ Coastal Incident Response Plan. Agencies supported by the Port District’s marine rescue service include the U.S. Coast Guard, the County of Santa Cruz Sheriff’s Department and other local law enforcement agencies, Santa Cruz County Office of Emergency Services, City of Santa Cruz Lifeguard Service / Marine Rescue Unit, State Parks lifeguards and rangers, Capitola City lifeguards, Santa Cruz County Fire marine rescue swimmers, Central Fire District (formally Aptos-La Selva Fire District) marine rescue swimmers, and others. As noted in the County’s Coastal Incident Response Plan, “The Santa Cruz Harbor Patrol has no jurisdictional responsibility in Santa Cruz County other than the Small Craft Harbor itself. The Harbor Patrol receives funding from Santa Cruz County to perform search and rescue missions within the three nautical mile line, which extends in Santa Cruz County to three nautical miles offshore including the Monterey Bay. If needed, the Harbor Patrol may extend beyond that boundary.” Despite having no jurisdictional responsibility, the Santa Cruz Harbor Patrol performed 33 marine search and rescue missions from 2020 to 2023 and saved 219 lives. If the County Sheriff Department or another local agency had to provide this marine rescue program, it would need to bear the full cost and responsibility for acquiring a patrol vessel and year-round crew available 24/7, ongoing crew training, acquiring and maintaining lifesaving equipment, vessel and equipment maintenance and replacement, fuel, berthing costs, dispatch, insurance, liability, and program administration. LAFCO Staff Recommendation: LAFCO encourages the District to coordinate with the County to determine if the annual reimbursement amount of $50,000 is aligned with the marine rescue services being provided. Santa Cruz Port District Service & Sphere Review Page 22 of 30 Challenges and Opportunities The Santa Cruz Port District is significantly affected by changes in State laws and regulations that can arise from time to time and add complexities and/or costs. For example, changes in California’s Clean Water Act’s list of impaired water bodies, maintained by the State Water Resources Control Board, may result in the development of Total Maximum Daily Load (TMDL) requirements. TMDL’s are intended to improve and restore impaired water bodies. Regulations related to fishing and other ocean resources can also affect commercial and recreational fishing, with potential impacts to District activities. Sea level rise, predicted as a result of climate change, may also force the District to make expensive adaptations in the near future. In 2015, the California Legislature passed AB 691 requiring trustees of granted public lands to assess the impacts of sea level rise on these lands and to provide this assessment to the State Lands Commission by July 1, 2019. Another challenge that the District has faced and may experience again is the aftermath of natural disasters. On March 11, 2011, a tsunami that originated in Japan destroyed the District’s “U” dock and severely damaged docks throughout the harbor. The destruction brought on by the tsunami resulted in a Major Disaster Declaration by then President Obama. The estimated repair cost for all tsunami-related damages to the District was approximately $19.7 million. State and federal government grant funding covered approximately 94% of the total tsunami-related costs. The final recovery project related to the tsunami disaster, replacing the south harbor electrical service at an approximate cost of $2.6 million, was completed in April 2015. Unfortunately, another tsunami hit the Santa Cruz Port District in 2022. The Tonga Hunga-Tonga Ha'apai volcano erupted on January 14, 2022, and generated tsunami waves that impacted the west coast of the United States on the morning of January 15, 20221. At that time, the District estimated that $6.5 million would be needed to fix the damaged infrastructure. During these types of occurrences, the District should continue to consider partnering with neighboring agencies and businesses to address unpredictable yet inevitable natural disasters. Historically, the District has collaborated with agencies and organizations within the Harbor to repair seawalls and other infrastructure. In 2015, the District partnered with Aldo’s Harbor Restaurant to address needed repairs to a failing seawall. This collaboration allowed the restaurant to continue operating in temporary quarters on the harbor’s west side while a long- term plan was developed to replace the seawall. 1 USGC Website: https://www.usgs.gov/data/observations-tsunami-and-runup-heights-santa-cruz-harbor-and-surrounding-beaches-2022-hunga Santa Cruz Port District Service & Sphere Review Page 23 of 30 SPHERE OF INFLUENCE Cortese-Knox-Hertzberg Act City and special district spheres of influence define the probable physical boundaries and service area of a local agency, as determined by the Commission (Government Code Section 56076). The law requires that spheres be updated at least once every five years either concurrently or subsequently to the preparation of Municipal Service Reviews. Spheres are determined and amended solely at the discretion of the Commission. In determining the sphere of influence for each local agency, the Commission is required by Government Code Section 56425(e) to consider certain factors, including: ➢ The present and planned uses in the area, including agricultural and open-space lands; ➢ The present and probable need for public facilities and services in the area; ➢ The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide; ➢ The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency; and ➢ For an update of a sphere of influence of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, that occurs pursuant to subdivision (g) on or after July 1, 2012, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. Current & Proposed Sphere Boundary LAFCO originally adopted a coterminous sphere for the District in 1988, as shown in Figure 6 on page 25. Prior to the sphere reaffirmation in the early-1990s, an agreement among the County, City of Santa Cruz, and the District resulted in all three parties supporting a coterminous sphere boundary with the notion that the District would eventually become a full enterprise district by foregoing property tax revenue. Today, the District relies on enterprise (business-related) revenue sources to fund operations and has fulfilled its commitment to the 1991 agreement. For the past 36 years, the sphere boundary has remained unchanged. Based on LAFCO’s analysis, the sphere should be amended to address existing discrepancies, specifically small portions of the City of Santa Cruz being excluded from the current sphere. State law prohibits “dividing a municipal corporation” (Harbors and Navigation Code Section 6210). The proposed amendment would result in added clarity and consistency among the existing jurisdictional boundaries. Therefore, staff is recommending that the sphere be amended to include the previously excluded portions of the City of Santa Cruz, as shown in Figure 7 on page 26. Such inclusion does not automatically trigger annexation. Further analysis would be required if annexation is considered and initiated by the affected parties. Santa Cruz Port District Service & Sphere Review Page 24 of 30 Figure 6: Current Sphere Map Santa Cruz Port District Service & Sphere Review Page 25 of 30 Figure 7: Proposed Sphere Map Santa Cruz Port District Service & Sphere Review Page 26 of 30 DISTRICT SUMMARY Santa Cruz Port District Formation California Harbors and Navigation Code, section 6000 et seq. Five members, elected at-large to four-year terms Board of Directors (Transition to division-based election starting in November 2024) Port Director Holland MacLaurie Employees 29 Full-Time Employees Appx. 1,200 wet berths; 275 dry-stored vessels; visitor Facilities berthing; and launching District Area 27.9 square miles Current Sphere: Coterminous with Service Area Sphere of Influence Proposed Sphere: Larger than Service Area Total Revenue = $14,950,486 FY 2022-23 Audit Total Expenditure = $11,154,234 Projected Net Position (Beginning Balance) = $35,165,484 Mailing Address: 135 5th Avenue, Santa Cruz CA 95062 Phone Number: (831) 475-6161 Contact Information Email Address: scpd@santacruzharbor.org Website: www.santacruzharbor.org Meetings are typically held on the fourth Tuesday of each Public Meetings month at 5:30 p.m. The primary mission of the Santa Cruz Port Commission is to ensure that Santa Cruz Harbor is a viable operational and Mission Statement financial entity, providing a full array of boating and marine related opportunities for the public. Santa Cruz Port District Service & Sphere Review Page 27 of 30 SERVICE AND SPHERE REVIEW DETERMINATIONS The following service and sphere review determinations fulfill the requirements outlined in the Cortese-Knox-Hertzberg Act. Service Provision Determinations Government Code Section 56430 requires LAFCO to conduct a municipal service review before, or in conjunction with, an action to establish or update a sphere boundary. Written statements of determination must be prepared with respect to each of the following: 1. Growth and population projections for the affected area. The District encompasses unincorporated county territory as well as the vast majority of the City of Santa Cruz. It is estimated that approximately 99,000 residents currently live within the District’s jurisdiction. Based on LAFCO’s projections, the District’s population may reach 113,000 by the year 2040. 2. The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence. In 2020, the California statewide median household income was $78,672, and 80% of that was $62,938. Based on LAFCO’s analysis, there are no disadvantaged unincorporated communities within or contiguous to the District’s sphere boundary. 3. Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. The District does not provide water, sewer, or fire protection within its service area. 4. Financial ability of agencies to provide services. The District operates with revenues covering expenditures on an annual basis. As of March 31, 2023, the District is operating with a net position of approximately $35 million and total assets of approximately $66 million. The District is funded primarily through service charges. The District does not receive any tax revenue. 5. Status of, and opportunities for, shared facilities. The District provides emergency ocean rescue and law enforcement services when requested to assist the US Coast Guard, local marine rescue agencies, and law enforcement agencies within the County. The District is part of a Joint Powers Authority with the California Maritime Infrastructure Authority and has MOUs with the US Army Corps of Engineers for dredging and the City and County for tax reallocation. 6. Accountability for community service needs, including governmental structure and operational efficiencies. The Santa Cruz Port District is governed by a five-member board. The District has transitioned from at-large to division-based elections, effective with the November 2024 election. 7. Any other matter related to effective or efficient service delivery, as required by commission policy. No additional local LAFCO policies are specifically relevant to this service and sphere review. Santa Cruz Port District Service & Sphere Review Page 28 of 30 Sphere of Influence Determinations Government Code Section 56425 requires LAFCO to periodically review and update spheres of influence in concert with conducting municipal service reviews. Spheres are used as regional planning tools to discourage urban sprawl and encourage orderly growth. Written statements of determination must be prepared with respect to each of the following: 1. The present and planned land uses in the area, including agricultural and open- space lands. State law limits the square miles of the Santa Cruz Port District such that it does not include the entire County and there can only be one municipal corporation in the District (Harbors and Navigation Code Section 6210). The District’s boundary contains the vast majority of the City of Santa Cruz and an area of unincorporated land. This area includes a wide range of land uses, including but not limited to, agriculture, community commercial, parks and open space, and residential. 2. The present and probable need for public facilities and services in the area. The District experiences an ongoing need for harbor services, which is demonstrated by the current wait list for harbor slips. The longest approximate wait time ranges from 1 year for a 20-foot slip up to 23 years for a 40-foot slip. All slip assignments are based on chronological precedence of requests. Only one size slip may be requested. The District provides a monthly waiting list report which can be accessed on their website. 3. The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. The District has consistently demonstrated a capacity to provide harbor services to the large population it serves. A strong local demand for harbor services is effectively constrained by the spatial limitations of the harbor’s physical site. 4. The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. There are no District-relevant social or economic communities of interest in the area served. Staff’s analysis does highlight that District’s recent transition from at-large to division-based elections. This transition will provide more equal representation within the District’s jurisdictional boundary and on its governing board. 5. For an update of a sphere of influence of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, that occurs pursuant to subdivision (g) on or after July 1, 2012, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. The Santa Cruz Port District does not provide services related to sewers, municipal and industrial water, or structural fire protection. Therefore, this determination is not applicable. Santa Cruz Port District Service & Sphere Review Page 29 of 30 APPENDICES Appendix A: “Harbor News” Newsletter (Spring 2024) Appendix B: Division-Based Election Map (November 2024) Appendix C: Capital Improvement Plan (2024 to 2028) Santa Cruz Port District Service & Sphere Review Page 30 of 30 APPENDIX A: “Harbor News” Newsletter (Spring 2024) SANTA CRUZ PORT DISTRICT PORT COMMISSIONERS 135 5th Avenue Toby Goddard Santa Cruz, CA 95062 Dennis Smith 831.475.6161 Reed Geisreiter scpd@santacruzharbor.org Stephen Reed www.santacruzharbor.org Darren Gertler HARBOR NEWS SANTA CRUZ SMALL CRAFT HARBOR SPRING 2024 Since its dedication on April 18, 1964, the Santa Cruz Harbor has been a cornerstone of the Santa Cruz community, offering a wide range of commercial and recreational marine-related activities for residents and visitors alike. Guided by the mission of the Santa Cruz Port Commission, the harbor has remained a vibrant and financially sustainable entity, providing a wide array of boating and marine related opportunities for the public. As we celebrate this milestone, we invite you to browse the Port District’s archive and celebrate the collective efforts that have shaped the Santa Cruz Harbor into the valuable marine asset it is today. Here’s to 60 years! “…And thus it goes. Our harbor is a living thing as vital as the air we breathe and as eternal as the tides and winds which are a part of us.” ~ ED LARSON Aviator, Artist, Author, and Beloved Friend of the Harbor 1 2023 FISHERIES 2024 SALMON CONGRESSMAN DISASTER SEASON UPDATE PANETTA DECLARATION On April 11, 2024, the Pacific SITE VISIT Fisheries Management Council On February 1, 2024, the Secre- Congressman Panetta was onsite made the determination to close tary of Commerce announced the on February 23, 2024, to meet recreational and commercial allocation of $20.6 million for with staff and tour the harbor. ocean salmon fishing statewide in the fishery resource disaster that 2024. The action to close salmon Congressman Panetta is familiar occurred in the 2023 Sacramento fishing for a second straight year with the Port District’s dredging River Fall Chinook fishery. The comes after the continuation of operation and has been instrumen- State of California and the Pacif- low stock abundance forecasts. tal in coordinating congressional ic Fisheries Management Coun- support for the District’s annual cil will have until June 1, 2024, dredge reimbursement from the to submit a spend plan to Nation- U.S. Army Corps of Engineers. al Oceanic and Atmospheric Ad- ministration (NOAA Fisheries) The Port District is extremely ap- before funds are released to preciative of the ongoing support those affected by the 2023 salm- received from local and state leg- MILE BUOY on fishery closure. islators. SAVED FROM USACE REMOVAL! LTC SHEBESTA SITE VISIT On Friday, March 29, 2024, the Coast Guard announced that the Santa Cruz Lighted Whistle Buoy, On Wednesday, March 27, 2024, commonly known as Mile Buoy, LTC Timothy Shebesta of the will not be removed. The an- U.S. Army Corps of Engineers nouncement came after over- (USACE) toured the harbor and whelming public support in favor reviewed the District’s dredge of the buoy remaining in our local operation. Chair Reed, Commis- waters. The Coast Guard has indi- sioner Goddard, and staff led an cated that every ten years, Aids to informative visit, which high- Navigation are evaluated for their lighted the successful partnership utility, so it’s another proposal for that exists between the Port Dis- removal will occur in the future. trict and the Corps. 2 UPCOMING MEETINGS NATIONAL SAFE BOATING WEEK - MAY 18-24, 2024 Regular monthly Commission meetings are held on the fourth Tuesday of each month Join the Port District in promoting safe boating during at 5:30 PM. Items for the agenda must be National Safe Boating Week at the Santa Cruz Harbor submitted to the Port District by the launch ramp. Tuesday prior to the meeting date of each month. Stay tuned for more information! Please join us in person or virtually! For more information visit our website. CONCESSION PARKING LOT TEMPORARILY CLOSED SPECIAL CLOSED MEETING: Please be advised that the concession parking lot will be April 23, 2024, 4:30 PM closed from Monday, April 22 to Friday, April 26, 2024. The Port District recently awarded a contract to Granite REGULAR PUBLIC MEETING: Construction to facilitate much needed paving work in the April 23, 2024, 5:30 PM concession parking lot. The concession parking lot and all access points will be closed for the duration of the project. REGULAR PUBLIC MEETING: Free parking will be available for patrons in the launch May 28, 2024, 5:30 PM ramp parking lot (adjacent to the concession parking lot). Click here for more information. SANTA CRUZ COUNTY CLEANUP DAY O'Neill Sea Odyssey will be hosting a Community Cleanup on May 11, 2024. MEET: 616 Atlantic Avenue (near the en- trance to the West Jetty Walkway) TIME: 9:00 AM – 11:00 AM Click here for more information on how to participate in an upcoming cleanup event. 3 Historical Photograph Credit to Les Long. 4 Historical Photograph Credit to Les Long. 5 ANCHORS BOATYARD BOATYARD AWEIGH! SUPERVISOR CREW KEVIN MELROSE NICK HENNING PETER REPLOGLE After 8 years with the Port The Port District is pleased to The Port District would like to District, Kevin Melrose, the announce that Nick Henning has welcome Peter Replogle to the District’s Boatyard Supervisor been promoted to the position of operations team as the new full- set sail into retirement on March Boatyard Supervisor. time Boatyard Crew member. 31, 2024. Nick has worked at the boatyard Peter has worked in the boating We extend our sincere since 2021, and has extensive industry since 2015, and is a appreciation for his contributions experience hauling vessels and graduate of The Northwest School and wish him well in his participating in the oversight of of Wooden Boat Building in Port endeavors. the day-to-day operations of the Townsend, Washington. He also yard. served eight years in the Army as Join us in congratulating Kevin an electronics technician. on his well-deserved retirement! We look forward to having Nick in this supervisory position, so Please join us in welcoming Peter please join us in congratulating to the team! him on his recent promotion! MARINE FLARE DISPOSAL SURVEY Calling All Seafarers & Coastal Guardians! Are you a boater, sailor, or ocean enthusiast in Santa Cruz County? Your input about Marine Flare The Santa Cruz Harbor Boatyard is gearing up for the busy season. use, and disposal is needed! Be sure to schedule your haulout soon! TAKE THE SURVEY NOW! Call Today! (831) 475-3002 6 SELF-GUIDED TOUR STATIONS Throughout the Santa Cruz Harbor there are interpretive panels which detail many facets of the harbor’s eco-systems, economics, and history. These panels were created by Ed Larson decades ago and offer a colorful and informative way to learn about the environment and the role Santa Cruz Harbor plays in our community. Most panels are located at the water’s edge and are easy to find by the bright yellow and blue metal signs with rounded tops which denote their location. 2023-24 DREDGE OPERATIONS The 2023-24 dredge season has proven to be challenging. The crew has been working hard to combat rough weather, a large influx of sand, and several unanticipated equipment failures that have resulted in extended work stoppages. The dredge crew has been working hard to address the entrance channel shoaling and has made significant progress deepening the center channel. An extension to the dredge season through May 24, 2024, has been requested. Final approval from all regulatory agencies is pending. Cheers to 25 years! Arturo Acevedo (left) and Jorge Lopez (right), recently celebrated their 25th anniversary of working for the Port District’s Maintenance Department. Both starting in 1998, each have provided a tireless commitment to the Port District’s grounds and infrastructures. Thank you! 7 WATER TAXI OPERATION The free inner-harbor water taxi is scheduled to begin operation over Memorial Day Weekend! Beginning Saturday, May 25, 2024, the water taxi will be operating on weekends and holidays from 11:00 AM to 6:00 PM. In addition to weekend service, the water taxi will operate on Thursday evenings during the Crow's Nest beach barbecues from 5:00 PM to 9:00 PM. Passengers may be picked up and dropped off at the following locations: • X1 Gate (northeast harbor) • AA Dock (southwest harbor) • Launch Ramp (southeast harbor) 8 APPENDIX B: Division-Based Election Map (November 2024) Felton Scotts Valley Paradise Park Pasatiempo v Ri o e nz B Soquel a n L or r a n c S if o r t e D 2 Aptos r Soquel Dr 1 Capitola B a y S t High M S i s t si o n L St aure S l a n S ta t Cruz O c e a n S W t ater St 3 F r e d e r ic k S t Ar a n a G u 7 l t c h h A v C e apitola R d 1 7 t h A v e L 5 ive Oak Seacliff 4 Twin Lakes A lm Pleasure Point a r A v e National Demographics Corporation, May 24, 2023 �2021 CALIPER APPENDIX C: Capital Improvement Plan (2024 to 2028) SANTA CRUZ PORT DISTRICT FIVE-YEAR CAPITAL IMPROVEMENT PLAN FISCAL YEAR 2024 - FISCAL YEAR 2028 SANTA CRUZ PORT DISTRICT FY24 Budget CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program and fund balance propose $500,000 in new funding for capital improvement projects in FY24, and assignment of $920,000 in existing Unallocated CIP Funds18 in support of identified projects. The proposed 5-Year Capital Improvement Program follows. 18 The Port District received approximately $922,761 in net insurance proceeds for damages related to the January 15, 2022, tsunami. This funding was received and recognized in FY23 and allocated to the CIP Reserve Fund (Unallocated CIP), pending Commission review and allocation as part of the FY24 budget process. Receipt of this one-time funding is intended to cover costs for tsunami-damaged items, including but not limited to dredge equipment repair and replacement, north harbor transformer repair, pile repair and replacement, etc. This funding may be utilized for any purpose designated by the Commission. 30 SANTA CRUZ PORT DISTRICT FY24 Budget INTRODUCTION This 5-year Capital Improvement Plan (CIP) presents the Santa Cruz Port District’s plan for development, maintenance, improvement, and acquisition of infrastructure assets to benefit Santa Cruz Harbor’s users, businesses, and visitors. It is intended to serve as a guidance document for planning, scheduling, and implementing capital improvements and planning projects over the next 5 years. The 5-year CIP serves as a tool for prioritizing and selecting future projects, and provides an overview of works in progress. The CIP highlights the District’s investments in infrastructure development and maintenance (i.e., capital improvements) and other significant capital expenditures. Studies of less than $5,000, and capital expenditures for equipment, vehicles and vessels are typically not included in the CIP, though there are exceptions (e.g., previous water taxi and patrol vessel procurements). CAPITAL IMPROVEMENT PLAN DEVELOPMENT Annual updating of the 5-year CIP is an integral part of the budget process. The CIP is presented with the budget to provide time for review by the public and the Port Commission prior to consideration and incorporation into the final budget. Prior to FY13, many capital improvements were budgeted and completed within line items in the operating budget, such as Pavement Repairs (F006), Building Restoration (F011), Restroom Building Rehabilitation (F012) and Dock Upgrades(F008). Those items are now presented as separate projects within the 5-year CIP with recommended funding amounts for ongoing rehabilitation and repair. Each year, the Commission will adopt an updated 5-year CIP that will include prioritized short and long-term projects. The prioritized list will be used by staff in the development of the annual operating budget. The 5- year CIP will be published in advance of and discussed during a public meeting prior to adoption of the annual budget. FUNDING THE CAPITAL IMPROVEMENT PLAN Each year, funding is allocated to various large and small projects within the CIP. Non-specific CIP funding is contained in the Unallocated CIP Funds (F099), which is also referred to as the CIP Reserve Fund. In FY16, the Port Commission adopted a Reserve Policy, which established funding goals for reserves and for the 5-year CIP. The Commission initially elected to contribute $500,000 to the CIP fund each year, whenever practicable. The CIP fund would be allowed to grow over time so that large-scale projects could be planned and accomplished without impacting either the Reserve Fund or operations. In February 2020, the Commission increased the CIP funding goal to $750,000 annually, whenever practicable. While the annual funding goal remains at $750,000, several FY24 budget impacts, including increased personnel services costs and increased insurance premiums (premiums are anticipated to rise 114% or $602,934 over the FY23 budget), pose a significant challenge to reaching the $750,000 funding level. 31 SANTA CRUZ PORT DISTRICT FY24 Budget As a result, a $500,000 contribution is proposed in conjunction with utilizing $920,000 of Unallocated CIP Funds19 to establish funding in the amount of $1,420,000 for identified project needs. PROJECT DEVELOPMENT AND SELECTION PROCESS The projects proposed in the FY24 CIP were derived from a variety of sources, including recommendations from Port District staff, Commission and public input, and projects identified in the Port District Priorities for 2023. Although not typically included as capital improvements, planning studies may be included in the CIP as part of the planning effort. Studies of less than $5,000 or capital expenditures for vehicles, equipment and vessels are typically funded in the operating budget. Twelve (12) previously identified projects are proposed for funding in FY24. This total includes two (2) projects that were added mid-fiscal year (North Harbor Transformer Project and 2222 East Cliff Deck Replacement). Four (4) projects are proposed for closeout (i.e., removal from the list), and there is one (1) new project proposed for funding in FY24. A CIP Summary sheet outlining projects and funding levels is included as Appendix A. Not including the CIP Reserve Fund, the Fund Balance projection as of April 1, 2023, has 28 identified projects with some level of available funding. PROPOSED PROJECTS Several of the proposed projects in this CIP address ongoing infrastructure or facility maintenance needs and are typically programmed on an annual basis. Examples include Pavement Repairs (F006), Building Restoration (F011), and Restroom Building Rehabilitation (F012). The following attachments provide additional detail regarding future funding needs and project descriptions: • Appendix B: Capital Improvement Plan Detail – 5-year funding projections • Appendix C: Capital Improvement Plan Detail – Project Descriptions (funded and unfunded) ENVIRONMENTAL REVIEW The development of this 5-year plan is not a project, as defined in the California Environmental Quality Act (CEQA), and an environmental review is not required for its adoption. Individual projects listed herein may be subject to CEQA and environmental reviews will be conducted during project implementation. 19 The Port District received approximately $922,761 in net insurance proceeds for damages related to the January 15, 2022, tsunami. This funding was received and recognized in FY23 and allocated to the CIP Reserve Fund (Unallocated CIP), pending Commission review and allocation as part of the FY24 budget process. Receipt of this one-time funding is intended to cover costs for tsunami-damaged items, including but not limited to dredge equipment repair and replacement, north harbor transformer repair, pile repair and replacement, etc. This funding may be utilized for any purpose designated by the Commission. 32 SANTA CRUZ PORT DISTRICT FY24 Budget CAPITAL IMPROVEMENT PLAN DETAIL APPENDIX A – CIP SUMMARY The table below summarize FY23 CIP funding contributions, including mid-year transfers to individual funds. CIP FUNDING SUMMARY Beginning Balance as of April 1, 2022 $1,894,053 Transfer In – Westside Seawall Design (PC Approval 6/7/22) $4,292 Transfer In – North Harbor Transformers (PC Approval 9/27/22) $207,000 Transfer In – 2222 East Cliff Deck (PC Approval 12/13/22) $825,000 Transfer In – Murray Street Bridge (Escrow Funding rec’d XXXXXX) $400,000 Transfer In – Insurance Proceeds (January 15, 2022, Tsunami) $922,761 Total: $4,253,060 Anticipated FY23 Expenditures through March 31, 2023 ($345,427) $3,907,633 33 SANTA CRUZ PORT DISTRICT FY24 Budget CAPITAL IMPROVEMENT PLAN DETAIL APPENDIX A – CIP SUMMARY (CONT.) The table below summarizes the FY24 CIP funding contributions (and reallocations) and details projected balances for individual funds as of April 1, 2023. Beginning FY23 FY23 FY24 FY24 Projected Project Name Number Balance April Projected Contribution/ Proposed Funding Balance 1, 2022 Expenditures Reallocation Reallocation Contribution April 1, 2023 CF Marine Services Center F003 10,000 0 $10,000 Harbor Security Upgrades HO01 12,404 (12,182) 12,000 $12,222 Sanitary Sewer Lift Stations F004 364,986 (22,545) $342,441 Piling Replacement F005 30,000 85,000 500,000 $615,000 Pavement Repairs F006 52,716 (44,200) 100,000 $108,516 Dock Upgrades F008 82,097 0 $82,097 Pier Rehabilitation F009 129,322 (20,842) (85,000) $23,480 Building Restoration F011 205,630 (18,118) 20,000 $207,512 Restroom Building Rehabilitation F012 275,000 (24,396) 50,000 $300,604 Sidewalk & Plaza Restoration F013 33,000 $33,000 Storm Drain System F014 30,000 0 $30,000 Water & Sewer System F015 44,139 0 $44,139 Parking Pay Station F018 15,000 (14,981) 0 $19 Aeration System Upgrades F019 31,304 0 $31,304 Ice Machine F020 19,222 0 $19,222 West Jetty Walkway J001 799 0 $799 7th and Brommer Recon F021 134,467 (42,258) 25,000 $117,209 SH Revetment & Seawall F022 98,499 (63,760) 21,500 $56,239 Murray Street Bridge F024 (42,960) (22,961) 400,000 $334,079 Unallocated CIP Funds F099 17,209 909,982 (920,000) 150,000 $157,191 Aldo's Seawall Replacement F027 188,441 $188,441 Parking Upgrades F028 46,321 (627) 25,000 $70,694 Patrol Vessel Replacement F033 2,182 0 (2,182) Close Out Boatyard Marine Ways Insp. F035 8,000 (5,753) (2,247) 0 Close Out Harborwide Refuse Study F039 10,000 (8,000) 3,000 $5,000 Water Taxi F040 0 0 0 0 Close Out Maint Work Boat Replacement F041 0 0 0 0 Close Out Embankment Assessment F042 6,274 70,000 $76,274 Fuel System Upgrades F043 40,000 (6,461) 55,000 $88,539 January 22 Tsunami Fund F044 50,000 (14,527) (35,473) Close Out NH Transformer F045 (20,328) 207,000 225,000 $411,672 2222 East Cliff Deck Replacement F046 (3,488) 825,000 10,000 $831,512 Twin Lakes Haul (New in FY24) F047 35,473 175,000 $210,473 TOTAL: $1,894,053 $ (345,427) $2,359,053 $920,000 $1,420,000 $4,407,679 34 SANTA CRUZ PORT DISTRICT FY24 Budget CAPITAL IMPROVEMENT PLAN DETAIL APPENDIX B – 5-YEAR FUNDING PROJECTIONS Projects within the Capital Improvement Program are categorized into one of the six following categories: • Docks, Piers & Marine Structures • Buildings • Landside Infrastructure • Utility Systems • Planning Projects & Studies • Miscellaneous Projects The tables below summarize anticipated funding needs for each identified project / project category for the period FY24 to FY28. The proposed FY24 CIP contribution totals $1,270,000 (comprised of $920,000 in insurance proceeds and $350,000 from the operating budget). DOCKS, PIERS & MARINE STRUCTURES FY24 FY25 FY26 FY27 FY28 Total Piling Replacement 500,000 75,000 125,000 250,000 50,000 $1,000,000 Dock Upgrades - 20,000 125,000 250,000 50,000 $445,000 Pier Rehabilitation - 20,000 - - 50,000 $90,000 BY Marine Ways Upgrades - 40,000 - 85,000 - $125,000 $500,000 $155,000 $250,000 $585,000 $150,000 $1,640,000 NOTABLE FY24 DOCKS, PIERS & MARINE STRUCTURE PROJECTS • Replacement of approximately 35-40 critical piles throughout the north and south harbor during the June 15 to Nov 30, 2023, • Sleeve 2 previously identified piles at the boatyard marine ways. 35 SANTA CRUZ PORT DISTRICT FY24 Budget BUILDINGS FY24 FY25 FY26 FY27 FY28 Total Building Restoration 20,000 75,000 25,000 50,000 50,000 $220,000 Restroom Rehabilitation 50,000 150,000 100,000 100,000 75,000 $475,000 2222 East Cliff Deck 10,000 - - 5,000 - $15,000 2222 East Cliff Repaint20 - 50,000 - - - $50,000 2218 East Cliff Roof21 - 75,000 - - - $75,000 Lighthouse Repaint - 15,000 15,000 - - $30,000 Harbor Office Updates - 10,000 10,000 - $20,000 $80,000 $365,000 $150,000 $165,000 $125,000 $885,000 NOTABLE FY24 BUILDING PROJECTS • Replacement of second story deck at 2222 East Cliff Drive. • Renovation of I-Dock restroom and shower facility. LANDSIDE INFRASTRUCTURE FY24 FY25 FY26 FY27 FY28 Total Pavement Repairs 100,000 75,000 75,000 75,000 75,000 $400,000 Parking Pay Stations - 5,000 5,000 25,000 - $35,000 Parking Upgrades 25,000 5,000 5,000 5,000 5,000 $45,000 Sidewalk and Plaza - - 15,000 25,000 - $40,000 Restoration $125,000 $85,000 $100,000 $130,000 $80,000 $520,000 NOTABLE FY24 LANDSIDE INFRASTRUCTURE PROJECTS • Anticipated paving repairs include storm-damaged concrete walkway near 493 Lake Avenue, fishery pier, and concession lot exit lanes. • Travel path upgrades in concession lot (paid for from Parking Upgrades). 20 Previous funding for this project in the amount of $10,000 is allocated in the Building Restoration fund balance. 21 Previous funding for this project in the amount of $50,00 is allocated in the Building Restoration fund balance. 36 SANTA CRUZ PORT DISTRICT FY24 Budget UTILITY SYSTEMS FY24 FY25 FY26 FY27 FY28 Total Sanitary Sewer Upgrades - 75,000 200,000 75,000 75,000 $425,000 Fuel System Upgrades 55,000 - - 10,000 10,000 $75,000 Aeration Syst. Upgrades - 10,000 - 10,000 - $20,000 Storm Drain Maintenance - - 5,000 - 5,000 $10,000 Water & Sewer Maint. TBD TBD TBD TBD TBD TBD NH Transformers 225,000 100,000 TBD TBD TBD $325,000 - - 15,000 25,000 - $40,000 $280,000 $185,000 $220,000 $120,000 $90,000 $895,000 NOTABLE FY24 LANDSIDE INFRASTRUCTURE PROJECTS • Replacement of G-Dock sanitary sewer lift station. • Fuel System upgrades (new dispensers and hoses) • Replacement of 6 tsunami-damaged transformers in the north harbor. PLANNING PROJECTS & STUDIES FY24 FY25 FY26 FY27 FY28 Total Comm. Fishery Upgrades TBD TBD TBD TBD TBD TBD West Side Master Plan - - 85,000 - - $85,000 7th & Brommer Site 25,000 TBD TBD TBD TBD $25,000 SH Revetment. & Seawall TBD TBD TBD TBD TBD TBD Harbor Wi-Fi - - 25,000 5,000 5,000 $35,000 East Side Embankment $70,000 TBD TBD TBD TBD $70,000 Arana Gulch Grade - 85,000 - - - $85,000 Control Feasibility Study $95,000 $85,000 $110,000 $5,000 $5,000 $300,000 NOTABLE FY24 PLANNING PROJECTS AND STUDIES • Continued planning for the repair and replacement of the west side seawall (SH Revetment & Seawall) • Contract for engineering services to determine repair/replacement options for the storm-damaged east side embankment. 37 SANTA CRUZ PORT DISTRICT FY24 Budget MISCELLANEOUS PROJECTS FY24 FY25 FY26 FY27 FY28 Total CIP Reserve Fund TBD TBD TBD TBD TBD TBD Refuse / Recycling Study 3,000 - - - - $3,000 Harbor Security Upgrades 12,000 12,000 - 12,000 - $36,000 West Jetty Walkway TBD TBD TBD TBD TBD TBD Twin Lakes Haul 175,000 200,000 200,000 - - $575,000 Unallocated CIP 150,000 $340,000 $212,000 $200,000 $12,000 - $764,000 NOTABLE FY24 PLANNING PROJECTS AND STUDIES • Refuse receptable upgrades at beach plaza. • Installation of additional security cameras. • Set-aside funding for Twin Lakes haulout. TOTAL 5-YEAR CIP FUNDING NEEDS FY24 FY25 FY26 FY27 FY28 Total Docks, Piers & Structures $500,000 $155,000 $250,000 $585,000 $150,000 $1,640,000 Buildings $80,000 $365,000 $150,000 $165,000 $125,000 $885,000 Landside Infrastructure $125,000 $85,000 $100,000 $130,000 $80,000 $520,000 Utility Systems $280,000 $185,000 $220,000 $120,000 $90,000 $895,000 Planning Project/Studies $95,000 $85,000 $110,000 $5,000 $5,000 $300,000 Miscellaneous Projects $340,000 $212,000 $200,000 $12,000 - $764,000 $1,420,000 $1,087,000 $1,030,000 $1,017,000 $450,000 $5,009,004 38 SANTA CRUZ PORT DISTRICT FY24 Budget CAPITAL IMPROVEMENT PLAN DETAIL APPENDIX C – PROJECT DESCRIPTIONS FUNDED PROJECTS F003 CF HARBOR SECURITY MARINE SERVICES CENTER Status: Project on Hold This project would involve improvements to the facilities located at 493 and 495 Lake Avenue, buildings that currently house H&H Fresh Fish, Johnny’s Harborside Restaurant, and the Santa Cruz Harbor Boatyard. The first phase of the project will involve outreach and preliminary planning for ice production and storage, evaluation of the expansion potential for the restaurant facility, and potential upgrades to serve the commercial fishery. Additional work will involve identification of funding sources/partners, and use of the boatyard during the City of Santa Cruz’s upcoming Murray Street Bridge Rehabilitation project. HO01 HARBOR SECURITY UPGRADES Status: Ongoing – funding recommended in FY24 for acquisition of additional security cameras This project was approved to provide for increased security systems throughout the harbor to reduce unauthorized uses, and to improve monitoring and law enforcement capabilities. Cameras and recording devices with remote monitoring capabilities have been installed at key locations and expansion of the camera system is recommended. Fencing and lighting upgrades were previously completed in the north harbor dry storage and dredge yard. Previously completed projects include restroom door and gate rekeying in FY16, FY17 and FY19, and acquisition of electronic system components in FY19. Fabrication of dock gates to support the new electronic key system were funded as separate project (Dock Upgrades F008). Security cameras were installed in FY20, FY21, FY22, and FY23 (. Additional funding planned in FY24 is for additional cameras. F004 SANITARY SEWER LIFT STATIONS Status: Ongoing – adequate funding available for first phase of replacement (G-Dock lift station) This project will continue to involve development of construction documents for upgrades or replacements as required, and coordination with the City of Santa Cruz and the County of Santa Cruz for future maintenance. Priority tasks previously identified include replacing the lift station control panels and performing ultrasound inspections of existing steel tubing, replacing, or relining existing tanks and upgrading access to pumps for maintenance. A comprehensive assessment of the nine existing sanitary sewer lift stations was performed in FY22. As a result of that assessment, construction documents for upgrades or replacements as required were drafted in FY23. Replacement of the G-Dock lift station will be placed out to bid in late FY23 or early FY24. F005 PILING REPLACEMENT Status: Ongoing - funding needed for critical piling replacements in FY24. The Port District maintains approximately 700 piles to support its docks and piers. Over the last 5 years, approximately 225 piles have been repaired and/or replaced. Funding is requested in FY24 to address pile replacement needs in the north and south harbor (some damage attributed to tsunami and storm events). F006 PAVEMENT REPAIRS Status: Ongoing – funding recommended in FY24. Ongoing project to maintain, resurface and restripe harbor parking lots and roads. Funding in FY24 is requested to repave storm-damaged concrete walkway near 493 Lake Avenue, fishery pier, and concession lot exit lanes. 39 SANTA CRUZ PORT DISTRICT FY24 Budget F008 DOCK UPGRADES Status: Ongoing – no funding recommended in FY24. The 30 distinct docks that make up the Santa Cruz Harbor provide berthing for over 800 vessels, fulfilling the mission of being a federal and state harbor of refuge. This funding provides for small projects involving repairs or upgrades to the existing docks and appurtenant structures such as gates, brow piers, ramps, etc. Fabrication of new aluminum dock gates supporting conversion to electronic key system for dock gates and restrooms was completed in FY19. Southeast harbor brow pier repairs completed in FY19; installation of new aluminum gangways acquired in FY21 for southeast harbor brow piers was completed in FY22. F009 PIER REHABILITATION Status: Ongoing – adequate funding available for proposed FY24 work. The harbor’s three piers require periodic inspection and maintenance to ensure they remain safe for public access and serviceable for their various uses. This ongoing project provides periodic funding for inspections, repairs, and upkeep. In 2020, 10 piles supporting the east public pier were deemed to be in critical condition and in need of repair. In FY21, a repair project was completed in which 3 of the 10 piles were jacketed and filled with cementitious grout. Of the remaining piles, 4 were programmed for repair in FY22, and 3 were scheduled for repair in FY23. The planned project in FY22 was delayed, and as a result, 7 east public pier piles were jacketed in FY23 by in-house crews, which resulted in considerable cost savings. Two piles supporting the boatyard marine ways will be jacketed by in-house crews in FY24. As a result of in-house crews performing this work, $85,000 is proposed to be transferred from Pier Rehabilitation to Piling Replacement. F011 BUILDING RESTORATION Status: Ongoing – funding recommended in FY24. Projects to be programmed on an annual basis include minor improvements that extend the useful life of systems and equipment in District-owned buildings that are rented out to various tenants. Future projects (FY24 and beyond) include 333 Lake Avenue rewiring and submetering, roofing and stairway replacement; re-roofing the concession lot restroom structure; roofing repairs at 2218 East Cliff Drive; exterior painting of 2222 East Cliff Drive; and other necessary maintenance and repair projects. F012 RESTROOM BUILDING REHABILITATION Status: Ongoing – funding recommended in FY24. FY24 funding and ongoing funding recommended to facilitate phased rehabilitation of restroom facilities. Projects are planned on an annual basis to extend the useful life of the District’s 11 restroom buildings. After 4 of the 11 restroom buildings sustained flood damage as a result of the January 2022 tsunami, expediting repair work in FY23 was initiated. In FY24, demolition and replacement of the I-Dock restroom and shower facility is planned. F013 SIDEWALK AND PLAZA RESTORATION Status: Ongoing - no projects planned in FY24 No major restoration of sidewalks or plazas was completed in FY23. No additional funding recommended in FY24. 40 SANTA CRUZ PORT DISTRICT FY24 Budget F014 STORM DRAIN SYSTEM Status: Ongoing – no funding recommended in FY24. This ongoing project involves maintenance, repairs and cleaning of the harbor’s storm drainpipes, inlets and catch basins, and upgrades needed to comply with the State of California Industrial Stormwater Permit. F015 WATER & SEWER SYSTEMS Status: Ongoing – no funding recommended in FY24. This ongoing project funds upgrades, improvements and major replacement / repair to the harbor’s water and sewer services. F018 PARKING PAY STATION UPGRADES Status: Ongoing – no funding recommended in FY24. This ongoing project funds replacement of the aging parking meters with pay stations throughout the harbor, beginning on the west side. Future projects anticipate pay station replacement and rehabilitation. F019 AERATION SYSTEM UPGRADES Status: Ongoing – no funding recommended in FY24. Annual maintenance of the aerator motors and floats is performed as part of the Aeration program. This project differs from the annual program as it provides for replacement of aerators worked beyond their rated capacity. F020 ICE MACHINE Status: Ongoing – no funding recommended in FY24. This project was initially funded to add cold storage and/or an ice delivery system to serve the commercial fishing fleet following replacement of the former Sunwell ice system. The resident buyer has a concept for improving ice production and delivery which may be an appropriate use of this funding subject to Port Commission review and approval. J001 WEST JETTY WALKWAY Status: Project on Hold A Phase 1 project to complete resurfacing of the west jetty walkway was completed in 2012, utilizing grant funding provided by the Coastal Conservancy. Phase 2, which will complete an accessible walkway between AA-dock and Walton Lighthouse featuring donor-funded amenities including benches, plazas, a gateway and overlooks, is on hold pending completion of the Aldo’s restaurant building replacement, and subsequent West Side Master Plan. F021 7th & BROMMER RECON Status: Ongoing – funding recommended in FY24 Site assessment and engineering work for future development of the Port District’s property in the area of 7th and Brommer, and coordination and interface with other opportunities in the area to ensure Port District and community interests are served. Site assessment of the Port District-owned parcel on northwest parcel was initiated in FY21 and continues. A marketing and feasibility study to consider opportunities that may be available to the Port District on County-owned property located on the southwest corner of 7th and Brommer is ongoing. 41 SANTA CRUZ PORT DISTRICT FY24 Budget F022 SOUTH HARBOR REVETMENT & SEAWALL Status: Ongoing – no funding recommended in FY24. Originally funded in FY15, this project was for engineering assessment and recommendations involving the seawall along the harbor’s west side. The seawall at 616 Atlantic Avenue was replaced in FY20 and is similar vintage to the west side seawall. FY23 funding initiated a comprehensive engineering assessment of the seawall including a dive inspection. The final assessment report is pending. Additional funding in future years will be needed to undertake replacement of the seawall. F024 MURRAY STREET BRIDGE Status: Ongoing – no funding recommended in FY24. Funding for this project will be made available by the City of Santa Cruz upon completion of necessary right-of-way certifications. In FY23, the Port District received a draw of escrow funding in the amount of $400,000 to cover project related costs for the preliminary design and replacement of FF, Rowing, and Boatyard Docks. Port District coordination with the City of Santa Cruz on the Murray Street bridge reconstruction project. Contract services for engineering oversight and legal counsel will be needed. F027 ALDO’S SEAWALL REPLACEMENT PROJECT Status: Ongoing – no funding recommended in FY24. Construction of a new seawall was completed by Granite Construction in FY20. The project was partially funded by financing obtained in FY19. All loan funding has been expended. Approximately $188,441 remains in the CIP following project close-out, to provide funding for any future District costs associated with accessway improvements and Tenant reconstruction of the restaurant structure. F028 PARKING UPGRADES Status: Ongoing – funding recommended in FY24. The Santa Cruz Harbor Parking Management Plan completed during FY16 included several recommendations for upgrading ADA parking facilities throughout the harbor. This project involves assessing current inventory and adding new accessible spaces in key locations. In FY21 one additional ADA space was added in the concession parking lot and existing spaces were relocated and reconfigured to bring them to current ADA standards. In FY22, funding to assess necessary upgrades to bring the path of travel between the concession lot public restroom and the beach plaza / concession area to current standards was completed. Work to complete the necessary path of travel upgrades is planned in FY24. Recently acquired bids for the improvement work indicate additional funding is necessary in FY24. F039 HARBORWIDE REFUSE / RECYCLING STUDY Status: Ongoing – funding recommended in FY24. A harborwide refuse and recycling study was completed in FY23. While the final report pends Commission review, additional funding is being allocated in FY24 to address recommended improvements, like new/improved receptacles along the beach plaza. 42 SANTA CRUZ PORT DISTRICT FY24 Budget F042 EMBANKMENT ASSESSMENT Status: Ongoing – funding recommended in FY24. The embankment area at the site of the crane pad on the east access road adjacent to Twin Lakes’ off-season mooring has visible erosion, which was accelerated further by the January 2022 tsunami and again by the January 2023 winter storms. Funding was designated in FY22 to inspect the area, assess the significance of the erosion, and develop a repair plan suitable to support the crane and associated activities. A comprehensive assessment was completed in FY22, and an additional review of the area was performed by engineers after the tsunami event. Since considerable erosion occurred during the January 2023 storm events, funding in FY24 will be required to determine adequate repair / replacement options. The crane pad is currently compromised and cannot be used at full capacity. Costs associated with this project may be reimbursable by FEMA / CalOES. F043 FUEL SYSTEM UPGRADES Status: Ongoing – funding recommended in FY24. The Santa Cruz Port District operates a full-service fuel dock 7 days a week. Ensuring that adequate funding is available for future equipment repair is critical to ensuring a serviceable operation. In FY24, the Port District will facilitate replacement of all four fuel dispensers and hose reels. F045 NORTH HARBOR TRANSFORMER Status: Ongoing – funding recommended in FY24. As a result of the January 15, 2022, tsunami, 6 electrical transformers in the north harbor were submerged and damaged. Replacement is required. In FY23, the Commission allocated $207,000 to facilitate the design and replacement of the transformers. Design work is currently underway, and additional FY24 funding is required to procure new transformers and complete installation. Additional funding may be needed in future fiscal years if a phased installation plan is developed. F046 2222 EAST CLIFF DECK REPLACEMENT Status: Ongoing – funding recommended in FY24. In October 2022, the Commission allocated $825,000 from the reserve fund to facilitate the repair and replacement of the second story deck at 2222 East Cliff Drive. Additional funding is recommended in FY24 to cover any construction administration or oversight for this project. F046 TWIN LAKES HAUL Status: Ongoing – funding recommended in FY24. The District’s dredge, Twin Lakes, has been in service for approximately 7 years. Bi-annual inspections are routinely performed by a contracted third party knowledgeable in dredge operations and equipment. A recommendation has been made to haul the dredge (for comprehensive inspection and maintenance) within the next 1-3 years. FY24 funding is recommended as a partial set-aside. 43 SANTA CRUZ PORT DISTRICT FY24 Budget UNFUNDED PROJECTS WIFI SYSTEM This project involves design and installation of a Wi-Fi system available to harbor customers and tenants. Installation costs are presumed to be borne by a Wi-Fi vendor to be selected through a public bidding process, though there are numerous other options researched by Port District staff which may impact the type of service provided, installation costs, ongoing monthly costs, vendor-provided support, maintenance and customer service, fee-based upgrade options, etc. A feasibility study by an outside consultant is recommended to identify and assess available options. Any Wi-Fi system should include comprehensive vendor-provided support as a top priority. Should the Commission direct staff to pursue the project following completion of a feasibility study, subsequent development of an RFP for installation of a Wi-Fi system by a qualified consultant is recommended. ARANA GULCH GRADE CONTROL STRUCTURE FEASIBILITY STUDY (FEMA HAZARD MITIGATION GRANT APPLICATION) This project would involve developing a grant proposal to fund engineering design and construction of several sediment- reduction measures in Arana Gulch, upstream of the north harbor. Work on this project commenced in FY 11 with a preliminary application submitted on the Port District's behalf. The application process was suspended because the Port District is not eligible to serve as lead agency for the grant and cooperative agreements had not been executed with the City of Santa Cruz and the County of Santa Cruz for extraterritorial work sponsored by the Port District. WEST SIDE MASTER PLAN Master Plan study to follow reconstruction of a new restaurant at 616 Atlantic Avenue for the purposes of completing accessible public improvements along the walkway and jetty area between AA Dock and Walton Lighthouse, as envisioned in the 2008 West Jetty Walkway project. The West Side Master Plan needs to seamlessly tie in access to any future replacement of the SH Revetment and Seawall (F022). ELEVATOR REPLACEMENT FUND Fund for future replacement of Port District elevator(s). ELECTRIC VEHICLE CHARGING STATION Identification of location(s) for placement of electric vehicle charging station(s) throughout the harbor, including assessment of power requirements and ongoing utility costs and maintenance. 44 SANTA CRUZ PORT DISTRICT FY24 Budget ATTACHMENT A – DEBT SERVICE DETAIL & COVERAGE RATIOS 45 Santa Cruz Port District Historical Revenues and Expenses Debt Service Coverage Projection 2021 2022 2023 2023 2024 Audited Audited Budgeted Projected Budgeted Operating Revenues Charges for berthing and services $ 7,886,323 $ 8,864,120 $ 8,141,535 $ 9,058,058 $ 8,786,475 Rent and concessions $ 1,635,555 $ 2,023,819 $ 2,020,000 $ 2,149,892 $ 2,054,400 Total Operating Revenues $ 9,521,878 $ 10,887,939 $ 10,161,535 $ 11,207,950 $ 10,840,875 Operating Expenses Depreciation and Amortization $ 2,159,280 $ 2,187,657 $ - $ - $ - CalPERS Net Pension Liability (Non-cash) $ 190,116 $ 805,728 $ - $ - $ - OPEB Liability (Non-cash) $ 81,221 $ 101,318 $ - $ - $ - Dredging Operations $ 1,357,222 $ 1,324,630 $ 1,569,037 $ 1,462,202 $ 1,653,480 Administrative Services $ 753,848 $ 663,892 $ 826,625 $ 754,329 $ 889,563 Grounds $ 733,457 $ 790,109 $ 838,072 $ 905,822 $ 865,519 Fuel Services $ 427,765 $ 740,950 $ 493,291 $ 872,878 $ 516,338 Harbor Patrol $ 669,826 $ 712,258 $ 807,951 $ 791,242 $ 863,451 Property Management $ 515,497 $ 669,573 $ 555,579 $ 700,053 $ 842,315 Marina Management $ 483,428 $ 495,234 $ 563,149 $ 548,964 $ 611,835 Buildings $ 323,175 $ 321,331 $ 410,949 $ 395,717 $ 465,185 Parking Services $ 248,637 $ 352,771 $ 373,217 $ 405,159 $ 384,271 Docks, Piers, Marine Structures $ 269,258 $ 320,346 $ 340,916 $ 510,122 $ 679,068 Debt issuance costs $ - $ - $ - $ - $ - Finance & Purchasing $ 194,674 $ 183,581 $ 227,216 $ 193,473 $ 239,618 Environmental & Permitting $ 139,893 $ 95,646 $ 192,405 $ 169,068 $ 189,158 Utilities $ 86,067 $ 97,358 $ 104,396 $ 103,090 $ 109,072 Aeration $ 40,795 $ 49,913 $ 57,385 $ 40,513 $ 59,229 Rescue Services $ 84,414 $ 104,968 $ 125,105 $ 113,541 $ 144,756 Boatyard Operations $ 303,551 $ 326,087 $ 361,913 $ 358,203 $ 408,535 Port Commission Support $ 56,586 $ 107,746 $ 78,145 $ 65,990 $ 78,653 Capital Projects $ 1,630 $ 5 4 $ 9,819 $ 262 $ 8,186 Events $ - $ 13,111 $ 34,399 $ 25,670 $ 33,179 Fishery Support $ 5,064 $ 8,588 $ 16,027 $ 14,004 $ 17,024 Tsunami Expense $ - $ 187,859 $ - $ 188 Total Expenses $ 9,125,404 $ 10,660,708 $ 7,985,596 $ 8,430,491 $ 9,058,436 Non-Operating Revenue (Expenses) County revenues for public services $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Grants and Other Income $ 23,801 $ 619,189 $ 42,000 $ 33,472 $ 24,000 Dredging Reimbursement USACE $ 385,000 $ 665,000 $ - $ 525,000 $ 525,000 Interest Income $ 80,131 $ 30,375 $ 50,000 $ 132,714 $ 125,000 Interest Expense $ (443,836) $ (410,652) $ (456,980) $ (397,629) $ (355,317) Other Income (Expenses) $ 38,570 $ 83,001 $ 60,000 $ 124,573 $ 95,000 Total Non-Operating Income (Expenses) $ 133,666 $ 1,036,913 $ (254,980) $ 468,131 $ 463,683 Debt Service Coverage Calculation (+) Gross Revenues $ 9,521,878 $ 10,887,939 $ 10,161,535 $ 11,207,950 $ 10,840,875 (-) Maintenance and operating expenses $ (9,125,404) $ (10,660,708) $ (7,985,596) $ (8,430,491) $ (9,058,436) (+) Depreciation and Amortization $ 2,159,280 $ 2,187,657 $ - $ - $ - (+) CalPERS Unfunded Liability (Non-cash) $ 190,116 $ 805,728 $ - $ - $ - (+) OPEB Liability (Non-cash) $ 81,221 $ 101,318 $ - $ - $ - (=) Net Operating Income $ 2,827,091 $ 3,321,934 $ 2,175,939 $ 2,777,460 $ 1,782,439 (+) Interest Income $ 80,131 $ 30,375 $ 50,000 $ 132,714 $ 125,000 (+) Non-operating Income $ 38,570 $ 83,001 $ 60,000 $ 124,573 $ 95,000 (+) Grants $ 73,801 $ 669,189 $ 92,000 $ 83,472 $ 74,000 (+) Dredging Reimbursement USACE $ 385,000 $ 665,000 $ - $ 525,000 $ 525,000 (=) Net Revenues Available for Debt Service $ 3,404,593 $ 4,769,499 $ 2,377,939 $ 3,643,219 $ 2,601,439 (+) Current Portion Long Term Debt $ 1,274,163 $ 1,329,940 $ 1,329,940 $ 1,319,377 $ 1,329,940 (+) Interest Expense $ 443,836 $ 410,652 $ 456,980 $ 397,629 $ 355,317 (=) Total Debt Service $ 1,717,999 $ 1,740,592 $ 1,786,920 $ 1,717,006 $ 1,685,257 Debt Service Coverage Ratio (DSCR) 1.98x 2.74x 1.33x 2.12x 1.54x Required DSCR 1.25x 1.25x 1.25x 1.25x 1.25x SANTA CRUZ PORT DISTRICT FY24 Budget ATTACHMENT B – REVENUE, EXPENSE, & NON-OP SUMMARY SHEET 46 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET OPERATING INCOME User 000-000-000-0000-4000 Slip Rent Permanent $4,804,000 $4,796,098 $5,030,700 User 000-000-000-0000-4002 Slip Rent Visitors $160,000 $296,139 $210,000 User 000-000-000-0000-4003 Annual Slip Rent Discount ($1,225) ($984) ($1,225) Conc Rent 000-000-000-0000-4006 Tenant Concession Rent $1,885,000 $2,149,892 $2,054,400 Conc Rent 000-000-000-0000-4008 Misc. Tenant Rent (Sewer) $135,000 $126,697 $135,000 User 000-000-000-0000-4010 Launch Fees $150,000 $174,790 $155,000 User 000-000-000-0000-4012 Liveaboard $70,000 $88,000 $75,000 User 000-000-000-0000-4014 Catamaran Storage $26,000 $27,749 $26,000 User 000-000-000-0000-4016 North Harbor Dry Storage $185,000 $192,470 $195,000 User 000-000-000-0000-4018 7th Ave Dry Storage $116,000 $121,662 $122,000 User 000-000-000-0000-4020 Waiting List $120,000 $139,800 $120,000 User 000-000-000-0000-4024 Slip Leave Option $3,000 $3,500 $3,000 User 000-000-000-0000-4026 Partnership Fees $27,500 $31,273 $30,000 User 000-000-000-0000-4028 Sublease Fees $28,500 $44,259 $35,000 User 000-000-000-0000-4030 Variable/Utility Fees $197,500 $210,090 $207,250 User 000-000-000-0000-4032 Late Fees $50,000 $53,428 $50,000 Fines 000-000-000-0000-4036 Citations $93,000 $120,171 $98,000 Other / Misc 000-000-000-0000-4040 Credit Card Convenience Charges $22,000 $27,243 $22,000 User (Pkg) 000-000-000-0000-4100 Parking - Concession Lot $855,000 $899,636 $880,000 User (Pkg) 000-000-000-0000-4102 Parking - Launch Area User (Pkg) 000-000-000-0000-4104 Parking - Southwest User (Pkg) 000-000-000-0000-4106 Parking - North User (Pkg) 000-000-000-0000-4108 Parking - Southeast User (Pkg) 000-000-000-0000-4118 Meter Permits User (Pkg) 000-000-000-0000-4120 Slip Renter Parking Permits $25,000 $31,159 $26,000 User 000-000-000-0000-4122 RV Parking $185,000 $204,631 $195,000 Fuel 000-000-000-0000-4200 Fuel Sales Gasoline $285,000 $438,707 $345,000 Fuel 000-000-000-0000-4202 Fuel Sales Diesel $405,000 $581,885 $465,000 Other / Misc 000-000-000-0000-4204 Fuel Service Call Back Charges $10 $10 User 000-000-000-0000-4210 Wash Rack $6,250 $10,362 $6,500 BY 000-000-000-0000-4220 Boatyard Retail $11,500 $22,497 $16,500 BY 000-000-000-0000-4225 Boatyard Labor $1,000 $500 $750 BY 000-000-000-0000-4230 Boatyard Rental $2,500 $4,795 $3,000 BY 000-000-000-0000-4235 Boatyard Misc. $30,000 $41,310 $32,000 BY 000-000-000-0000-4240 Lay Days/Storage $122,000 $189,392 $140,000 BY 000-000-000-0000-4245 Vessel Haulout $130,000 $139,926 $132,000 BY 000-000-000-0000-4250 Vessel Berthing $32,000 $40,865 $32,000 000-000-000-0000-4299 Unallocated Revenue OPERATING INCOME $10,161,535 $11,207,950 $10,840,875 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET EXPENSE SUMMARY BY PROGRAM Administrative Services (110) $826,625 $754,329 $889,563 Finance & Purchasing (120) $227,216 $193,473 $239,618 Property Management (130) $555,579 $700,053 $842,315 Environmental & Permitting (140) $192,405 $169,068 $189,158 Port Commission Support (190) $78,145 $65,990 $78,653 Harbor Patrol (210) $807,951 $791,242 $863,451 Marina Management (220) $563,149 $548,964 $611,835 Rescue Services (230) $125,105 $113,541 $144,756 Parking Services (240) $373,217 $405,159 $384,271 Events (250) $34,399 $25,670 $33,179 Fuel Services (280) $493,291 $872,878 $516,338 Docks, Piers, Marine Structures (310) $340,916 $510,122 $679,068 Utilities (320) $104,396 $103,090 $109,072 Buildings (330) $410,949 $395,717 $465,185 Grounds (340) $838,072 $905,822 $865,519 Aeration (350) $57,385 $40,513 $59,229 Fishery Support (360) $16,027 $14,004 $17,024 Capital Projects (390) $466,799 $397,891 $363,503 Dredging Operations (400) $1,569,037 $1,462,202 $1,653,480 Boatyard Operations (500) $361,913 $358,203 $408,535 OPERATING EXPENSES $8,442,576 $8,827,931 $9,413,753 OPERATING PROFIT $1,718,959 $2,380,019 $1,427,122 NON OPERATING INCOME/(EXPENSE) Other / Misc 000-000-000-0000-4300 Harbor Services Charge $10,000 $1,000 $10,000 Other / Misc 000-000-000-0000-4308 Interest Income $50,000 $132,714 $125,000 Other / Misc 000-000-000-0000-4310 Other Income $50,000 $119,989 $85,000 Intergov 000-000-000-0000-4375 USACE Reimbursement $525,000 $525,000 Grants 000-000-000-0000-4400 Grants - State $11,472 Grants 000-000-000-0000-4405 Grants - DBAW $30,000 $10,000 $12,000 Intergov 000-000-000-0000-4406 County Rescue Contribution $50,000 $50,000 $50,000 Grants 000-000-000-0000-4408 Waste Oil Grant $12,000 $12,000 $12,000 Other / Misc 000-000-000-0000-4500 Gain/(Loss) on Asset Disposal $3,940 000-000-000-0000-4600 Cash Over/Under ($356) Election Expense Principal Debt Payments ($1,329,940) ($1,319,377) ($1,365,818) Capital Improvement Program ($382,000) ($2,741,053) ($500,000) Capitalized Expenses & DIF ($195,151) ($230,119) ($212,500) Depreciation ($1,680,020) NET INCOME/(LOSS) $13,868 ($2,724,790) $167,804 NCOME PROJECTION NET OF DEPRECIATION / CAP EXP Capital Improvement Program $2,790,292 Capitalized Expenses / Dredge Intermediate $230,119 Depreciation $1,680,020 PROJECTED NET INCOME FY23 $1,975,641 FY24 Projected Reserve Fund Contributio ($310,651) FY24 Projected Election Fund Contributio ($50,000) Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET ADMINISTRATIVE SERVICES (110) 100-100-110-0000-5000 Salaries - Regular $289,179 $252,736 $314,128 100-100-110-0000-5005 Salaries - Overtime $500 $250 $500 100-100-110-0000-5010 Wages - Part Time/Temporary $1,000 $500 $5,000 100-100-110-0000-5020 Salaries - Vacation Pay $5,000 $8,672 $6,000 100-100-110-0000-5025 Salaries - Holiday Pay $1,199 100-100-110-0000-5055 Unemployment Insurance (SUI) $1,800 $2,106 $2,266 100-100-110-0000-5060 FICA Medicare/Social Security $19,905 $18,504 $20,217 100-100-110-0000-5075 Auto Allowance $2,400 $2,400 $2,400 100-100-110-0000-5105 Workers' Compensation $8,850 $6,315 $10,443 100-100-110-0000-5110 CalPERS Employer Share $31,433 $28,058 $35,590 100-100-110-0000-5112 CalPERS Unfunded Liability $53,992 $54,444 $53,992 100-100-110-0000-5115 Health Insurance $48,548 $46,554 $50,850 100-100-110-0000-5120 Dental Insurance $3,351 $3,134 $3,351 100-100-110-0000-5125 Long Term Disability/Life/AD&D $867 $1,415 $956 100-100-110-0000-5200 Printing & Newsletter $14,000 $13,431 $14,000 100-100-110-0000-5202 Legal Notices $1,000 $500 $1,000 100-100-110-0000-5204 Advertising $3,000 $5,000 $3,000 100-100-110-0000-5206 Postage $10,000 $9,720 $10,500 100-100-110-0000-5208 Promotional Expense $11,000 $2,426 $11,000 100-100-110-0000-5214 Office Supplies $14,000 $15,750 $14,300 100-100-110-0000-5217 Supplies $1,000 $750 $1,000 100-100-110-0000-5240 Miscellaneous Employee Training $2,000 $1,000 $2,000 100-100-110-0000-5242 Pre-Employment Physicals $1,000 $500 $1,000 100-100-110-0000-5256 Equipment Rental $1,000 $500 $500 100-100-110-0000-5262 Insurance Premiums $27,500 $37,695 $56,571 100-100-110-0000-5264 Insurance Claims $5,000 $1,500 $5,000 100-100-110-0000-5266 Memberships, Dues, Subscriptions $14,000 $13,500 $14,000 100-100-110-0000-5268 Meetings & Training $5,000 $5,985 $5,000 100-100-110-0000-5270 Books $300 100-100-110-0000-5282 Bank Service Charges $16,000 $14,000 $15,000 100-100-110-0000-5284 Credit Card Fees $40,000 $40,072 $41,000 100-100-110-0000-5288 Employee Recognition $3,000 $3,658 $3,000 100-100-110-0000-5290 Miscellaneous Expenses $1,000 $500 $1,000 100-100-110-0000-5298 Interest Expense $2,000 100-100-110-0000-5310 Telephone & Alarms $26,000 $16,806 $22,000 100-100-110-0000-5415 Miscellaneous Professional Services $12,000 $9,600 $12,000 100-100-110-0000-5416 Legal Consultation $40,000 $34,000 $35,000 100-100-110-0000-5420 Technical Services $21,000 $18,500 $21,000 100-100-110-0000-5425 Contract Services $12,000 $19,200 $16,000 100-100-110-0000-5450 Other Services $10,000 $9,624 $12,000 100-100-110-0000-5465 Software License & Application $31,000 $22,873 $31,000 100-100-110-0000-5470 LAFCO Assessment $14,000 $11,359 $14,000 100-100-110-0000-5500 Mileage Reimbursement $1,000 $500 $1,000 100-100-110-0000-5510 Meetings & Seminars $3,000 $1,500 $3,000 100-100-110-0000-5694 Office Equipment R&M $10,000 $5,000 $10,000 100-100-110-0000-5698 Equipment/Equipment R&M $8,000 $12,000 $8,000 100-100-110-CO19-5000 COVID-19 Labor $405 100-100-110-TSUN-5000 2022 Tsunami Labor $188 100-100-110-TSUN-6300 2022 Tsunami Expenses TOTAL ADMINISTRATIVE SERVICES $826,625 $754,329 $889,563 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET FINANCE & PURCHASING (120) 100-100-120-0000-5000 Salaries - Regular $113,606 $91,042 $123,407 100-100-120-0000-5005 Salaries - Overtime $500 $500 100-100-120-0000-5010 Wages - Part Time/Temporary $1,000 $1,000 100-100-120-0000-5055 Unemployment Insurance (SUI) $957 $431 $957 100-100-120-0000-5060 FICA Medicare/Social Security $8,678 $5,489 $8,810 100-100-120-0000-5105 Workers' Compensation $3,740 $2,669 $4,413 100-100-120-0000-5110 CalPERS Employer Share $8,177 $7,299 $9,259 100-100-120-0000-5112 CalPERS Unfunded Liability $14,046 $14,164 $14,046 100-100-120-0000-5115 Health Insurance $20,329 $18,325 $21,006 100-100-120-0000-5120 Dental Insurance $1,416 $1,324 $1,416 100-100-120-0000-5125 Long Term Disability/Life/AD&D $367 $368 $404 100-100-120-0000-5214 Office Supplies $750 $350 $750 100-100-120-0000-5266 Memberships, Dues, Subscriptions $500 $500 $500 100-100-120-0000-5268 Meetings & Training $2,000 $2,000 $2,000 100-100-120-0000-5272 Software $500 $500 $500 100-100-120-0000-5290 Miscellaneous Expenses $1,000 $1,000 $1,000 100-100-120-0000-5420 Technical Services $2,000 $2,000 $2,000 100-100-120-0000-5460 Accounting & Auditing $46,000 $44,862 $46,000 100-100-120-0000-5465 Software License & Application $500 $500 $500 100-100-120-0000-5500 Mileage Reimbursement $150 $150 $150 100-100-120-0000-5698 Equipment/Equipment R&M $1,000 $500 $1,000 TOTAL FINANCE & PURCHASING $227,216 $193,473 $239,618 PROPERTY MANAGEMENT (130) 100-100-130-0000-5000 Salaries - Regular $18,443 $6,509 $20,034 100-100-130-0000-5055 Unemployment Insurance (SUI) $100 $25 $100 100-100-130-0000-5060 FICA Medicare/Social Security $1,811 $500 $1,825 100-100-130-0000-5105 Workers' Compensation $390 $278 $460 100-100-130-0000-5110 CalPERS Employer Share $2,411 $2,152 $2,729 100-100-130-0000-5112 CalPERS Unfunded Liability $4,141 $4,175 $4,141 100-100-130-0000-5115 Health Insurance $2,047 $1,967 $2,117 100-100-130-0000-5120 Dental Insurance $148 $138 $148 100-100-130-0000-5125 Long Term Disability/Life/AD&D $38 $109 $42 100-100-130-0000-5204 Advertising $1,500 $1,000 $1,500 100-100-130-0000-5262 Insurance Premiums $128,800 $281,897 $412,969 100-100-130-0000-5268 Meetings & Training $750 $500 $750 100-100-130-0000-5290 Miscellaneous Expenses $3,000 $1,500 $2,000 100-100-130-0000-5300 Gas & Electricity $83,500 $90,696 $85,000 100-100-130-0000-5305 Water, Sewer & Garbage $180,000 $181,174 $182,000 100-100-130-0000-5310 Telephone & Alarms $7,500 $3,679 $5,500 100-100-130-0000-5315 Sanitary Dist Charges $115,000 $93,703 $110,000 100-100-130-0000-5416 Legal Consultation $6,000 $30,052 $11,000 TOTAL PROPERTY MANAGEMENT $555,579 $700,053 $842,315 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET ENVIRONMENTAL & PERMITTING (140) 100-100-140-0000-5000 Salaries - Regular $14,016 $5,685 $12,554 100-100-140-0000-5005 Salaries - Overtime $3,000 $3,000 $3,000 100-100-140-0000-5010 Wages - Part Time/Temporary $42,000 $32,668 $40,000 100-100-140-0000-5055 Unemployment Insurance (SUI) $1,000 $508 $294 100-100-140-0000-5060 FICA Medicare/Social Security $3,392 $2,591 $3,432 100-100-140-0000-5105 Workers' Compensation $1,150 $821 $1,357 100-100-140-0000-5110 CalPERS Employer Share $3,427 $3,059 $3,880 100-100-140-0000-5112 CalPERS Unfunded Liability $5,886 $5,936 $5,886 100-100-140-0000-5115 Health Insurance $6,036 $5,666 $6,244 100-100-140-0000-5120 Dental Insurance $435 $407 $435 100-100-140-0000-5125 Long Term Disability/Life/AD&D $113 $154 $124 100-100-140-0000-5217 Supplies $1,000 $500 $1,000 100-100-140-0000-5235 Vehicle & Equipment Fuel $500 $500 $500 100-100-140-0000-5268 Meetings & Training $500 $250 $500 100-100-140-0000-5276 Permit Fees $8,000 $8,583 $8,000 100-100-140-0000-5292 Uniform Cleaning/Laundry $250 $290 $250 100-100-140-0000-5420 Technical Services $90,000 $90,000 $90,000 100-100-140-0000-5500 Mileage Reimbursement $500 $250 $500 100-100-140-0000-5625 Signage $200 $200 $200 100-100-140-0000-5665 Vehicle Maintenance $2,000 $1,500 $2,000 100-100-140-0000-5696 Permits & Inspections $2,500 $1,000 $2,500 100-100-140-0000-5698 Equipment/Equipment R&M $6,500 $5,500 $6,500 TOTAL ENVIRONMENTAL & PERMITTING $192,405 $169,068 $189,158 PORT COMMISSION SUPPORT (190) 100-100-190-0000-5000 Salaries - Regular $39,098 $34,698 $45,142 100-100-190-0000-5005 Salaries - Overtime $500 100-100-190-0000-5010 Wages - Part Time/Temporary $1,000 100-100-190-0000-5055 Unemployment Insurance (SUI) $302 $75 $302 100-100-190-0000-5060 FICA Medicare/Social Security $2,454 $2,283 $2,496 100-100-190-0000-5105 Workers' Compensation $1,180 $842 $1,392 100-100-190-0000-5110 CalPERS Employer Share $3,663 $3,270 $4,148 100-100-190-0000-5112 CalPERS Unfunded Liability $6,292 $6,345 $6,292 100-100-190-0000-5115 Health Insurance $6,193 $5,994 $6,407 100-100-190-0000-5120 Dental Insurance $447 $418 $447 100-100-190-0000-5125 Long Term Disability/Life/AD&D $116 $165 $127 100-100-190-0000-5214 Office Supplies $200 $200 $200 100-100-190-0000-5217 Supplies $100 $100 $100 100-100-190-0000-5268 Meetings & Training $6,000 $6,000 $6,000 100-100-190-0000-5270 Books $100 $100 $100 100-100-190-0000-5294 Commission Expenses $500 $500 $500 100-100-190-CVRA-6300 CVRA Expenses $10,000 $5,000 $5,000 TOTAL PORT COMMISSION SUPPORT $78,145 $65,990 $78,653 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET HARBOR PATROL (210) 100-200-210-0000-5000 Salaries - Regular $367,622 $383,128 $399,337 100-200-210-0000-5005 Salaries - Overtime $10,000 $12,183 $10,000 100-200-210-0000-5010 Wages - Part Time/Temporary $2,500 $500 100-200-210-0000-5015 Salaries - Comp. Time $3,075 100-200-210-0000-5020 Salaries - Vacation Pay $4,000 $2,025 $4,000 100-200-210-0000-5025 Salaries - Holiday Pay $5,000 $4,039 $5,000 100-200-210-0000-5040 Salaries - Call Back $1,500 $2,000 $1,500 100-200-210-0000-5045 Salaries - Call Ready $4,000 $5,933 $5,000 100-200-210-0000-5050 Salaries - Night Differential $5,000 $1,583 $4,000 100-200-210-0000-5055 Unemployment Insurance (SUI) $3,840 $2,787 $3,840 100-200-210-0000-5060 FICA Medicare/Social Security $34,067 $32,850 $34,596 100-200-210-0000-5100 Uniform Allowance $6,500 $6,500 $6,500 100-200-210-0000-5105 Workers' Compensation $15,000 $10,704 $17,700 100-200-210-0000-5110 CalPERS Employer Share $44,621 $39,302 $50,521 100-200-210-0000-5112 CalPERS Unfunded Liability $76,645 $76,263 $76,645 100-200-210-0000-5115 Health Insurance $84,325 $68,377 $87,040 100-200-210-0000-5120 Dental Insurance $5,680 $5,312 $5,680 100-200-210-0000-5125 Long Term Disability/Life/AD&D $1,470 $2,009 $1,620 100-200-210-0000-5217 Supplies $2,500 $2,000 $2,500 100-200-210-0000-5218 Tools $1,000 $500 $1,000 100-200-210-0000-5220 Harbor Patrol Supplies $3,000 $2,000 $3,000 100-200-210-0000-5224 Almar Maintenance $2,500 $1,913 $2,500 100-200-210-0000-5235 Vehicle & Equipment Fuel $8,000 $7,400 $8,000 100-200-210-0000-5236 Harbor Patrol Training $12,000 $8,500 $12,000 100-200-210-0000-5238 Harbor Patrol Misc. Expense $6,500 $5,600 $6,500 100-200-210-0000-5244 Background Investigations $3,000 $1,550 $3,000 100-200-210-0000-5262 Insurance Premiums $4,681 $11,278 $16,971 100-200-210-0000-5278 Booking Fees $2,000 $3,500 $2,000 100-200-210-0000-5415 Miscellaneous Professional Services $3,500 $3,300 $2,500 100-200-210-0000-5450 Other Services $78,000 $81,180 $82,000 100-200-210-0000-5500 Mileage Reimbursement $1,500 $150 $1,000 100-200-210-0000-5510 Meetings & Seminars $2,000 $1,000 100-200-210-0000-5665 Vehicle Maintenance $4,000 $4,000 $4,000 100-200-210-0000-5692 Communications Maintenance $2,000 $300 $2,000 100-200-210-0000-6100 Capital Outlay $24,500 TOTAL HARBOR PATROL $807,951 $791,242 $863,451 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET MARINA MANAGEMENT (220) 100-200-220-0000-5000 Salaries - Regular $309,343 $272,494 $336,031 100-200-220-0000-5005 Salaries - Overtime $500 $750 $500 100-200-220-0000-5010 Wages - Part Time/Temporary $24,000 $15,465 $23,500 100-200-220-0000-5020 Salaries - Vacation Pay $7,765 100-200-220-0000-5025 Salaries - Holiday Pay $2,500 $3,460 $2,500 100-200-220-0000-5055 Unemployment Insurance (SUI) $2,117 $1,475 $2,117 100-200-220-0000-5060 FICA Medicare/Social Security $18,920 $22,035 $19,212 100-200-220-0000-5105 Workers' Compensation $8,270 $5,901 $9,759 100-200-220-0000-5110 CalPERS Employer Share $42,234 $40,199 $47,819 100-200-220-0000-5112 CalPERS Unfunded Liability $72,545 $73,152 $72,545 100-200-220-0000-5115 Health Insurance $43,404 $41,425 $44,901 100-200-220-0000-5120 Dental Insurance $3,131 $2,929 $3,131 100-200-220-0000-5125 Long Term Disability/Life/AD&D $810 $1,902 $893 100-200-220-0000-5217 Supplies $5,000 $5,500 $5,000 100-200-220-0000-5222 Scout Maintenance $2,500 $2,510 $2,500 100-200-220-0000-5224 P/B Kinnamon Maintenance $5,000 $6,418 $5,000 100-200-220-0000-5262 Insurance Premiums $8,775 $13,435 $22,628 100-200-220-0000-5279 Bad Debt Expense $10,000 $5,000 $10,000 100-200-220-0000-5280 Lien Sale Expenses $2,500 $27,000 $2,500 100-200-220-0000-5465 Software License & Application $1,000 $1,000 100-200-220-0000-5500 Mileage Reimbursement $600 $150 $300 TOTAL MARINA MANAGEMENT $563,149 $548,964 $611,835 RESCUE SERVICES (230) 100-200-230-0000-5000 Salaries - Regular $28,770 $21,312 $31,252 100-200-230-0000-5005 Salaries - Overtime $1,000 $1,361 $1,000 100-200-230-0000-5010 Wages - Part Time/Temporary $1,000 $500 100-200-230-0000-5040 Salaries - Call Back $3,000 $2,097 $2,500 100-200-230-0000-5045 Salaries - Call Ready $16,000 $15,751 $16,000 100-200-230-0000-5055 Unemployment Insurance (SUI) $440 $370 $440 100-200-230-0000-5060 FICA Medicare/Social Security $4,327 $2,601 $4,388 100-200-230-0000-5105 Workers' Compensation $1,720 $1,227 $2,030 100-200-230-0000-5110 CalPERS Employer Share $2,576 $2,449 $2,917 100-200-230-0000-5112 CalPERS Unfunded Liability $4,425 $4,462 $4,425 100-200-230-0000-5115 Health Insurance $9,027 $7,744 $9,339 100-200-230-0000-5120 Dental Insurance $651 $609 $651 100-200-230-0000-5125 Long Term Disability/Life/AD&D $169 $116 $186 100-200-230-0000-5212 Safety Supplies $2,000 $2,000 $2,000 100-200-230-0000-5217 Supplies $500 $200 $500 100-200-230-0000-5222 Scout Maintenance $2,500 $2,500 $2,500 100-200-230-0000-5224 P/B Kinnamon Maintenance $4,500 $3,500 $4,500 100-200-230-0000-5226 Boat Fuel - Patrol Boats $7,000 $10,300 $8,000 100-200-230-0000-5236 Harbor Patrol Training $6,000 $6,000 100-200-230-0000-5238 Harbor Patrol Miscellaneous Expense $1,000 $750 $1,000 100-200-230-0000-5262 Insurance Premiums $6,500 $16,191 $22,628 100-200-230-0000-5425 Contract Services $22,000 $18,000 $22,000 TOTAL RESCUE SERVICES $125,105 $113,541 $144,756 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET PARKING SERVICES (240) 100-200-240-0000-5000 Salaries - Regular $79,426 $68,332 $86,278 100-200-240-0000-5005 Salaries - Overtime $500 $4,283 $500 100-200-240-0000-5010 Wages - Part Time/Temporary $90,000 $91,069 $90,000 100-200-240-0000-5025 Salaries - Holiday Pay $133 100-200-240-0000-5030 Salaries - Sick Pay $1,000 $750 $1,000 100-200-240-0000-5040 Salaries - Call Back $88 100-200-240-0000-5055 Unemployment Insurance (SUI) $3,500 $2,576 $445 100-200-240-0000-5060 FICA Medicare/Social Security $11,323 $11,868 $11,384 100-200-240-0000-5105 Workers' Compensation $1,740 $1,242 $2,053 100-200-240-0000-5110 CalPERS Employer Share $5,129 $9,325 $5,807 100-200-240-0000-5112 CalPERS Unfunded Liability $8,809 $18,094 $8,809 100-200-240-0000-5115 Health Insurance $9,132 $8,295 $10,147 100-200-240-0000-5120 Dental Insurance $523 $616 $659 100-200-240-0000-5125 Long Term Disability/Life/AD&D $135 $231 $188 100-200-240-0000-5212 Safety Supplies $500 $490 $500 100-200-240-0000-5217 Supplies $10,000 $12,031 $10,000 100-200-240-0000-5218 Tools $100 $100 100-200-240-0000-5231 Boat Fuel - Free Ride $600 $600 $600 100-200-240-0000-5235 Vehicle & Equipment Fuel $2,500 $4,000 $3,000 100-200-240-0000-5240 Miscellaneous Employee Training $1,000 $500 100-200-240-0000-5254 Rent & Leases $8,000 $9,600 $8,000 100-200-240-0000-5284 Credit Card Fees $50,000 $60,220 $50,000 100-200-240-0000-5292 Uniform Cleaning/Laundry $1,000 $624 $1,000 100-200-240-0000-5425 Contract Services $42,000 $43,200 $44,000 100-200-240-0000-5450 Other Services $32,000 $46,360 $32,000 100-200-240-0000-5465 Software License & Application $500 $500 100-200-240-0000-5500 Mileage Reimbursement $468 100-200-240-0000-5610 Water Taxi Maintenance $3,000 $2,750 $5,000 100-200-240-0000-5625 Signage $1,000 $1,213 $1,000 100-200-240-0000-5635 Parking Meters R&M $1,800 $1,500 $1,800 100-200-240-0000-5665 Vehicle Maintenance $3,000 $1,200 $3,000 100-200-240-0000-5698 Equipment/Equipment R&M $5,000 $4,000 $6,000 TOTAL PARKING SERVICES $373,217 $405,159 $384,271 EVENTS (250) 100-200-250-0000-5000 Salaries - Regular $9,344 $8,137 $10,150 100-200-250-0000-5005 Salaries - Overtime $1,000 $266 $500 100-200-250-0000-5010 Wages - Part Time/Temporary $3,000 $500 100-200-250-0000-5055 Unemployment Insurance (SUI) $100 $353 100-200-250-0000-5060 FICA Medicare/Social Security $899 $598 $948 100-200-250-0000-5105 Workers' Compensation $1,380 $985 $1,628 100-200-250-0000-5110 CalPERS Employer Share $1,205 $1,076 $1,365 100-200-250-0000-5112 CalPERS Unfunded Liability $2,070 $2,088 $2,070 100-200-250-0000-5115 Health Insurance $7,243 $6,680 $7,493 100-200-250-0000-5120 Dental Insurance $523 $489 $523 100-200-250-0000-5125 Long Term Disability/Life/AD&D $135 $54 $149 100-200-250-0000-5217 Supplies $3,500 $3,119 $3,500 100-200-250-0000-5256 Equipment Rental $1,000 $655 $1,000 100-200-250-0000-5290 Misc. Expenses $2,500 $1,524 $2,500 100-200-250-0000-5625 Signage $500 $500 TOTAL EVENTS $34,399 $25,670 $33,179 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET FUEL SERVICES (280) 100-200-280-0000-5000 Salaries - Regular $9,344 $5,297 $10,150 100-200-280-0000-5010 Wages - Part Time/Temporary $22,000 $21,364 $22,000 100-200-280-0000-5030 Salaries - Sick Pay $300 $300 100-200-280-0000-5055 Unemployment Insurance (SUI) $310 $103 $310 100-200-280-0000-5060 FICA Medicare/Social Security $2,516 $1,730 $2,559 100-200-280-0000-5105 Workers' Compensation $1,210 $863 $1,428 100-200-280-0000-5110 CalPERS Employer Share $1,134 $1,263 $1,284 100-200-280-0000-5112 CalPERS Unfunded Liability $1,949 $1,965 $1,949 100-200-280-0000-5115 Health Insurance $6,351 $5,855 $6,570 100-200-280-0000-5120 Dental Insurance $458 $429 $458 100-200-280-0000-5125 Long Term Disability/Life/AD&D $119 $51 $131 100-200-280-0000-5217 Supplies $1,000 $1,000 $1,000 100-200-280-0000-5218 Tools $100 $100 $100 100-200-280-0000-5245 Fuel Dock Gasoline $195,000 $340,000 $205,000 100-200-280-0000-5246 Fuel Dock Diesel $225,000 $460,000 $235,000 100-200-280-0000-5250 Fuel Dock Equipment & Supplies $1,000 $250 $1,000 100-200-280-0000-5252 Underground Storage Tank Maintenance $7,000 $9,200 $8,500 100-200-280-0000-5262 Insurance Premiums $4,000 $1,980 $4,000 100-200-280-0000-5276 Permit Fees $4,000 $3,978 $4,100 100-200-280-0000-5284 Credit Card Fees $8,000 $11,500 $8,000 100-200-280-0000-5607 Fueling Equipment R&M $2,500 $5,950 $2,500 TOTAL FUEL SERVICES $493,291 $872,878 $516,338 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET DOCKS, PIERS, MARINE STRUCTURES (310) 100-300-310-0000-5000 Salaries - Regular $90,246 $105,608 $109,517 100-300-310-0000-5005 Salaries - Overtime $1,000 $750 100-300-310-0000-5010 Wages - Part Time/Temporary $2,000 $1,000 100-300-310-0000-5055 Unemployment Insurance (SUI) $658 $645 $658 100-300-310-0000-5060 FICA Medicare/Social Security $8,201 $7,976 $8,291 100-300-310-0000-5105 Workers' Compensation $2,570 $1,834 $3,033 100-300-310-0000-5110 CalPERS Employer Share $9,099 $6,012 $10,302 100-300-310-0000-5112 CalPERS Unfunded Liability $15,629 $11,667 $15,629 100-300-310-0000-5115 Health Insurance $14,188 $11,218 $14,653 100-300-310-0000-5120 Dental Insurance $973 $910 $973 100-300-310-0000-5125 Long Term Disability/Life/AD&D $252 $410 $278 100-300-310-0000-5212 Safety Supplies $1,000 $1,000 $1,000 100-300-310-0000-5214 Office Supplies $250 $100 $250 100-300-310-0000-5217 Supplies $1,000 $750 $1,000 100-300-310-0000-5218 Tools $2,500 $2,500 $2,500 100-300-310-0000-5230 Boat Fuel - Odd Job Big Red $500 $150 $500 100-300-310-0000-5235 Vehicle & Equipment Fuel $2,500 $2,290 $2,500 100-300-310-0000-5240 Miscellaneous Employee Training $5,000 $1,200 $4,000 100-300-310-0000-5256 Equipment Rental $2,000 $500 $2,000 100-300-310-0000-5262 Insurance Premiums $145,000 $330,310 $463,883 100-300-310-0000-5268 Meetings & Training $1,000 $1,000 100-300-310-0000-5290 Miscellaneous Expenses $750 $250 $750 100-300-310-0000-5292 Uniform Cleaning/Laundry $600 $325 $600 100-300-310-0000-5430 Engineering Services $3,000 $2,483 $3,000 100-300-310-0000-5500 Mileage Reimbursement $500 $100 $500 100-300-310-0000-5605 Piers & Marine Structures R&M $15,000 $13,736 $15,000 100-300-310-0000-5615 Maintenance Work Boat R&M $1,000 $750 $1,000 100-300-310-0000-5620 Paint & Supplies $3,000 $500 $2,500 100-300-310-0000-5625 Signage $1,000 $1,200 $1,500 100-300-310-0000-5665 Vehicle Maintenance $3,000 $750 $3,000 100-300-310-0000-5698 Equipment/Equipment R&M $5,000 $3,750 $5,000 100-300-310-0000-5725 Welding Supplies $2,500 $1,200 $2,500 TOTAL DOCKS, PIERS, MARINE STRUCT $340,916 $510,122 $679,068 UTILITIES (320) 100-300-320-0000-5000 Salaries - Regular $31,229 $42,613 $33,924 100-300-320-0000-5005 Salaries - Overtime $750 $750 100-300-320-0000-5010 Wages - Part Time/Temporary $1,000 $1,000 100-300-320-0000-5055 Unemployment Insurance (SUI) $750 $174 $758 100-300-320-0000-5060 FICA Medicare/Social Security $2,146 $3,264 $2,250 100-300-320-0000-5105 Workers' Compensation $2,960 $2,112 $3,493 100-300-320-0000-5110 CalPERS Employer Share $5,838 $5,211 $6,610 100-300-320-0000-5112 CalPERS Unfunded Liability $10,027 $10,111 $10,027 100-300-320-0000-5115 Health Insurance $15,535 $14,535 $16,071 100-300-320-0000-5120 Dental Insurance $1,121 $1,048 $1,121 100-300-320-0000-5125 Long Term Disability/Life/AD&D $290 $263 $320 100-300-320-0000-5212 Safety Supplies $3,000 $750 $3,000 100-300-320-0000-5217 Supplies $1,000 $500 $1,000 100-300-320-0000-5240 Miscellaneous Employee Training $3,000 $3,000 100-300-320-0000-5290 Miscellaneous Expenses $250 $50 $250 100-300-320-0000-5650 Storm Drain Maintenance $5,500 $8,200 $5,500 100-300-320-0000-5665 Vehicle Maintenance $3,000 $750 $3,000 100-300-320-0000-5670 Utility Maintenance $12,000 $9,682 $12,000 100-300-320-0000-5698 Equipment/Equipment R&M $5,000 $3,826 $5,000 TOTAL UTILITIES $104,396 $103,090 $109,072 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET BUILDINGS (330) 100-300-330-0000-5000 Salaries - Regular $72,787 $71,169 $79,066 100-300-330-0000-5005 Salaries - Overtime $1,000 $349 $1,000 100-300-330-0000-5010 Wages - Part Time/Temporary $5,000 $6,000 100-300-330-0000-5015 Salaries - Comp. Time $1,000 $1,000 100-300-330-0000-5020 Salaries - Vacation Pay $1,000 $1,000 100-300-330-0000-5025 Salaries - Holiday Pay $107 100-300-330-0000-5040 Salaries - Call Back $500 $1,306 $500 100-300-330-0000-5045 Salaries - Call Ready $5,000 $3,639 $5,000 100-300-330-0000-5055 Unemployment Insurance (SUI) $750 $495 $758 100-300-330-0000-5060 FICA Medicare/Social Security $6,156 $6,032 $6,260 100-300-330-0000-5105 Workers' Compensation $2,960 $2,112 $3,493 100-300-330-0000-5110 CalPERS Employer Share $7,516 $4,599 $8,509 100-300-330-0000-5112 CalPERS Unfunded Liability $12,909 $8,924 $12,909 100-300-330-0000-5115 Health Insurance $19,735 $16,758 $19,571 100-300-330-0000-5120 Dental Insurance $1,121 $1,048 $1,121 100-300-330-0000-5125 Long Term Disability/Life/AD&D $290 $338 $320 100-300-330-0000-5212 Safety Supplies $2,000 $1,800 $2,000 100-300-330-0000-5216 Janitorial Supplies $30,000 $40,213 $32,000 100-300-330-0000-5217 Supplies $4,000 $2,250 $4,000 100-300-330-0000-5218 Tools $2,500 $1,641 $2,500 100-300-330-0000-5235 Vehicle & Equipment Fuel $3,000 $3,192 $3,000 100-300-330-0000-5240 Miscellaneous Employee Training $2,500 $500 $2,500 100-300-330-0000-5256 Equipment Rental $500 $500 100-300-330-0000-5262 Insurance Premiums $23,775 $43,252 $62,228 100-300-330-0000-5266 Memberships, Dues, Subscriptions $250 $250 100-300-330-0000-5268 Meetings & Training $1,000 $250 $1,000 100-300-330-0000-5290 Miscellaneous Expenses $1,000 $750 $1,000 100-300-330-0000-5292 Uniform Cleaning/Laundry $3,200 $1,918 $3,200 100-300-330-0000-5305 Water, Sewer & Garbage $62,000 $63,181 $64,000 100-300-330-0000-5308 Hazmat Disposal $3,500 $1,000 $1,500 100-300-330-0000-5412 Custodial Contract $65,000 $66,702 $72,000 100-300-330-0000-5430 Engineering Services $5,000 $1,575 $3,000 100-300-330-0000-5450 Other Services $1,500 $1,000 $1,500 100-300-330-0000-5500 Mileage Reimbursement $204 100-300-330-0000-5600 Building Repairs & Maintenance $38,000 $34,053 $38,000 100-300-330-0000-5620 Paint & Supplies $5,000 $1,250 $5,000 100-300-330-0000-5625 Signage $1,000 $200 $1,000 100-300-330-0000-5645 Street Maintenance $4,000 $500 $4,000 100-300-330-0000-5660 Street Light Maintenance $2,500 $1,500 $2,500 100-300-330-0000-5665 Vehicle Maintenance $3,500 $3,273 $3,500 100-300-330-0000-5698 Equipment/Equipment R&M $7,000 $7,436 $7,000 100-300-330-0000-5725 Welding Supplies $1,500 $1,200 $1,500 100-300-330-0000-6100 Capital Outlay $45,000 TOTAL BUILDINGS $410,949 $395,717 $465,185 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET GROUNDS (340) 100-300-340-0000-5000 Salaries - Regular $219,590 $251,376 $238,534 100-300-340-0000-5005 Salaries - Overtime $4,500 $5,000 $4,500 100-300-340-0000-5010 Wages - Part Time/Temporary $15,000 $16,343 $15,000 100-300-340-0000-5015 Salaries - Comp. Time $450 $450 100-300-340-0000-5020 Salaries - Vacation Pay $1,500 $4,206 $1,500 100-300-340-0000-5025 Salaries - Holiday Pay $2,456 100-300-340-0000-5030 Salaries - Sick Pay $250 100-300-340-0000-5040 Salaries - Call Back $2,500 $7,013 $2,500 100-300-340-0000-5045 Salaries - Call Ready $7,500 $11,489 $8,000 100-300-340-0000-5055 Unemployment Insurance (SUI) $3,251 $1,928 $3,251 100-300-340-0000-5060 FICA Medicare/Social Security $17,312 $23,093 $17,760 100-300-340-0000-5105 Workers' Compensation $12,700 $9,062 $14,986 100-300-340-0000-5110 CalPERS Employer Share $19,616 $17,510 $22,210 100-300-340-0000-5112 CalPERS Unfunded Liability $33,695 $33,977 $33,695 100-300-340-0000-5115 Health Insurance $66,654 $60,825 $68,953 100-300-340-0000-5120 Dental Insurance $4,809 $4,498 $4,809 100-300-340-0000-5125 Long Term Disability/Life/AD&D $1,245 $883 $1,372 100-300-340-0000-5210 Hazmat Supplies $7,500 $5,200 $7,500 100-300-340-0000-5212 Safety Supplies $3,000 $2,875 $3,000 100-300-340-0000-5217 Supplies $4,000 $3,971 $4,000 100-300-340-0000-5218 Tools $2,500 $3,000 $3,000 100-300-340-0000-5235 Vehicle & Equipment Fuel $5,000 $10,034 $6,000 100-300-340-0000-5240 Miscellaneous Employee Training $2,500 $2,991 $2,500 100-300-340-0000-5256 Equipment Rental $3,000 $2,800 $3,000 100-300-340-0000-5266 Memberships, Dues, Subscriptions $500 $500 100-300-340-0000-5276 Permit Fees $2,500 $750 $1,500 100-300-340-0000-5292 Uniform Cleaning/Laundry $4,000 $2,525 $3,500 100-300-340-0000-5300 Gas & Electricity $215,000 $248,774 $220,000 100-300-340-0000-5305 Water, Sewer & Garbage $95,000 $105,308 $97,000 100-300-340-0000-5308 Hazmat Disposal $10,000 $13,291 $10,000 100-300-340-0000-5405 Landscaping $10,000 $5,389 $8,000 100-300-340-0000-5425 Contract Services $5,000 $675 $2,500 100-300-340-0000-5500 Mileage Reimbursement $500 $89 $500 100-300-340-0000-5620 Paint & Supplies $5,000 $3,500 $5,000 100-300-340-0000-5625 Signage $4,000 $4,850 $4,000 100-300-340-0000-5630 Parking Lot R&M $10,000 $6,467 $10,000 100-300-340-0000-5645 Street Maintenance $2,500 $2,257 $2,500 100-300-340-0000-5665 Vehicle Maintenance $5,000 $2,500 $5,000 100-300-340-0000-5672 Other Repairs & Maintenance $3,500 $5,300 $3,500 100-300-340-0000-5696 Permits & Inspections $2,500 $250 $1,000 100-300-340-0000-5698 Equipment/Equipment R&M $10,000 $11,496 $10,000 100-300-340-0000-5800 Fish Removal Expenses $2,500 $2,000 100-300-340-0000-5805 Waste Oil Disposal/Recycle $12,500 $11,871 $12,500 TOTAL GROUNDS $838,072 $905,822 $865,519 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET AERATION (350) 100-300-350-0000-5000 Salaries - Regular $12,295 $3,083 $13,356 100-300-350-0000-5055 Unemployment Insurance (SUI) $75 $195 100-300-350-0000-5060 FICA Medicare/Social Security $1,581 $238 $1,607 100-300-350-0000-5105 Workers' Compensation $760 $542 $897 100-300-350-0000-5110 CalPERS Employer Share $2,694 $2,405 $3,051 100-300-350-0000-5112 CalPERS Unfunded Liability $4,628 $4,667 $4,628 100-300-350-0000-5115 Health Insurance $3,989 $3,751 $4,126 100-300-350-0000-5120 Dental Insurance $288 $269 $288 100-300-350-0000-5125 Long Term Disability/Life/AD&D $75 $121 $82 100-300-350-0000-5217 Supplies $1,000 $150 $1,000 100-300-350-0000-5300 Gas & Electricity $20,000 $22,786 $20,000 100-300-350-0000-5698 Equipment/Equip. R&M $10,000 $2,500 $10,000 TOTAL AERATION $57,385 $40,513 $59,229 FISHERY SUPPORT (360) 100-300-360-0000-5000 Salaries - Regular $9,344 $10,210 $10,150 100-300-360-0000-5055 Unemployment Insurance (SUI) $68 $38 100-300-360-0000-5060 FICA Medicare/Social Security $312 $744 $317 100-300-360-0000-5105 Workers' Compensation $150 $107 $177 100-300-360-0000-5110 CalPERS Employer Share $685 $612 $776 100-300-360-0000-5112 CalPERS Unfunded Liability $1,177 $1,187 $1,177 100-300-360-0000-5115 Health Insurance $787 $743 $814 100-300-360-0000-5120 Dental Insurance $57 $53 $57 100-300-360-0000-5125 Long Term Disability/Life/AD&D $15 $31 $16 100-300-360-0000-5675 Ice Equipment R&M $3,500 $250 $3,500 TOTAL FISHERY SUPPORT $16,027 $14,004 $17,024 CAPITAL PROJECTS (390) 100-300-390-0000-5000 Salaries - Regular $4,426 $250 $4,808 100-300-390-0000-5055 Unemployment Insurance (SUI) $15 100-300-390-0000-5060 FICA Medicare/Social Security $178 $12 $178 100-300-390-0000-5276 Permit Fees $2,500 $1,500 100-300-390-0000-5290 Miscellaneous Expenses $500 $500 100-300-390-0000-5298 Interest Expense $456,980 $397,629 $355,317 100-300-390-0000-5416 Legal Consultation $2,000 $1,000 100-300-390-0000-5500 Mileage Reimbursement $200 $200 100-300-390-0000-6200 Principal Debt Payments $1,329,940 $1,319,377 $1,365,818 TOTAL CAPITAL PROJECTS $466,799 $397,891 $363,503 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET DREDGING OPERATIONS (400) 100-300-400-0000-5000 Salaries - Regular $591,638 $541,326 $631,193 100-300-400-0000-5005 Salaries - Overtime $25,000 $39,767 $25,000 100-300-400-0000-5010 Wages - Part Time/Temporary $20,000 $42,609 $20,000 100-300-400-0000-5015 Salaries - Comp. Time $1,500 $1,500 $1,500 100-300-400-0000-5020 Salaries - Vacation Pay $2,000 $4,936 $2,000 100-300-400-0000-5025 Salaries - Holiday Pay $1,500 $1,124 $1,500 100-300-400-0000-5030 Salaries - Sick Pay $2,177 100-300-400-0000-5055 Unemployment Insurance (SUI) $6,193 $3,489 $6,193 100-300-400-0000-5060 FICA Medicare/Social Security $50,307 $47,628 $51,160 100-300-400-0000-5105 Workers' Compensation $24,190 $17,261 $28,544 100-300-400-0000-5110 CalPERS Employer Share $36,325 $32,425 $41,129 100-300-400-0000-5112 CalPERS Unfunded Liability $62,396 $62,918 $62,396 100-300-400-0000-5115 Health Insurance $131,858 $120,906 $136,236 100-300-400-0000-5120 Dental Insurance $9,159 $8,567 $9,159 100-300-400-0000-5125 Long Term Disability/Life/AD&D $2,371 $1,636 $2,613 100-300-400-0000-5210 Hazmat Supplies $3,000 $1,750 $3,000 100-300-400-0000-5212 Safety Supplies $6,500 $9,758 $6,500 100-300-400-0000-5217 Supplies $8,000 $6,307 $8,000 100-300-400-0000-5218 Tools $10,000 $14,958 $10,000 100-300-400-0000-5232 Boat Fuel - Dredge Skiff $1,000 $250 $1,000 100-300-400-0000-5233 Boat Fuel - Twin Lakes $105,000 $106,300 $105,000 100-300-400-0000-5234 Boat Fuel - Dauntless $10,000 $4,800 $10,000 100-300-400-0000-5235 Vehicle & Equipment Fuel $11,000 $15,868 $12,000 100-300-400-0000-5240 Miscellaneous Employee Training $10,000 $500 $10,000 100-300-400-0000-5256 Equipment Rental $32,000 $5,500 $32,000 100-300-400-0000-5262 Insurance Premiums $14,000 $27,154 $45,257 100-300-400-0000-5266 Memberships, Dues, Subscriptions $500 $975 $500 100-300-400-0000-5268 Meetings & Training $2,000 $1,000 $2,000 100-300-400-0000-5270 Books $100 $100 100-300-400-0000-5276 Permit Fees $10,000 $8,200 $10,000 100-300-400-0000-5290 Miscellaneous Expenses $5,000 $4,660 $5,000 100-300-400-0000-5292 Uniform Cleaning/Laundry $6,500 $6,867 $6,500 100-300-400-0000-5308 Hazmat Disposal $5,000 $4,631 $5,000 100-300-400-0000-5418 Freight $2,500 $2,200 $2,500 100-300-400-0000-5440 Environmental Services $10,000 $5,000 100-300-400-0000-5445 Dredge Consulting $15,000 $15,000 100-300-400-0000-5450 Other Services $5,000 $2,500 $5,000 100-300-400-0000-5500 Mileage Reimbursement $1,000 $1,000 100-300-400-0000-5620 Paint & Supplies $5,000 $6,300 $6,000 100-300-400-0000-5665 Vehicle Maintenance $5,000 $3,908 $5,000 100-300-400-0000-5672 Other Repairs & Maintenance $2,000 $6,696 $3,000 100-300-400-0000-5685 Safety Equipment R&M $1,500 $1,500 $1,500 100-300-400-0000-5698 Equipment/Equipment R&M $45,000 $36,000 $45,000 100-300-400-0000-5700 Maint/Lube Inner Harbor Dredge $20,000 $21,806 $20,000 100-300-400-0000-5705 Maint/Lube Dredge Twin Lakes $120,000 $123,754 $120,000 100-300-400-0000-5707 Maint/Lube - Ancilliary Equipment $65,000 $41,000 $65,000 100-300-400-0000-5710 Maint/Lube Dredge Workboat Dauntless $30,000 $28,688 $30,000 100-300-400-0000-5715 Dredge Paint/Coatings $18,000 $21,000 $19,000 100-300-400-0000-5720 Booster Pump R&M $10,000 $7,500 $10,000 100-300-400-0000-5725 Welding Supplies $10,000 $11,602 $10,000 100-300-400-0000-6105 Capitalized Equip Xfer to 1100 $191,151 $226,269 $143,000 TOTAL DREDGING OPERATIONS $1,569,037 $1,462,202 $1,653,480 Santa Cruz Port District FY24 BUDGET February 23, 2023 Category Account Description FY23 BUDGET FY23 PRJXN FY24 BUDGET BOATYARD OPERATIONS (500) 100-500-500-0000-5000 Salaries - Regular $149,262 $128,452 $162,139 100-500-500-0000-5005 Salaries - Overtime $1,000 $750 $1,000 100-500-500-0000-5010 Wages - Part Time/Temp. $15,500 $6,367 $20,000 100-500-500-0000-5015 Salaries - Comp. Time $300 $319 $300 100-500-500-0000-5025 Salaries - Holiday Pay $102 100-500-500-0000-5040 Call Back $500 $97 $500 100-500-500-0000-5055 Unemployment Insurance (SUI) $2,324 $1,877 $2,324 100-500-500-0000-5060 FICA Medicare/Social Security $13,483 $10,148 $13,804 100-500-500-0000-5105 Workers' Compensation $9,080 $6,479 $10,714 100-500-500-0000-5110 CalPERS Employer Share $8,555 $7,637 $9,687 100-500-500-0000-5112 CalPERS Unfunded Liability $14,696 $14,819 $14,696 100-500-500-0000-5115 Health Insurance $49,055 $43,908 $50,699 100-500-500-0000-5120 Dental Insurance $3,438 $3,215 $3,438 100-500-500-0000-5125 Long Term Disability/Life/AD&D $745 $385 $981 100-500-500-0000-5204 Advertising $525 $719 $525 100-500-500-0000-5210 Hazmat Supplies $500 $500 100-500-500-0000-5212 Safety Supplies $500 $300 $500 100-500-500-0000-5217 Supplies $2,500 $2,000 $2,500 100-500-500-0000-5218 Tools $1,000 $1,300 $1,000 100-500-500-0000-5235 Fuel - Travelift $1,500 $3,500 $2,000 100-500-500-0000-5240 Miscellaneous Employee Training $1,200 $1,250 $1,200 100-500-500-0000-5256 Equipment Rental $1,000 $1,000 100-500-500-0000-5262 Insurance Premiums $7,450 $16,191 $22,628 100-500-500-0000-5276 Permit Fees $2,500 $935 $2,000 100-500-500-0000-5284 Credit Card Fees $6,000 $7,876 $7,000 100-500-500-0000-5290 Misc. Expenses $1,500 $1,500 $1,500 100-500-500-0000-5292 Uniforms $600 $1,484 $1,200 100-500-500-0000-5300 Gas & Electricity $17,000 $15,755 $17,000 100-500-500-0000-5305 Water, Sewer, Garbage $13,000 $11,500 $13,000 100-500-500-0000-5308 Hazmat Disposal $5,500 $10,000 $5,500 100-500-500-0000-5310 Telephone & Alarms $2,000 $795 $1,500 100-500-500-0000-5425 Contract Services $500 $992 $500 100-500-500-0000-5430 Engineering Services $500 $500 100-500-500-0000-5450 Other Services $3,500 $3,500 $3,500 100-500-500-0000-5465 Software License & Application $500 $500 100-500-500-0000-5500 Mileage Reimbursement $200 $100 $200 100-500-500-0000-5625 Signage $250 $200 $250 100-500-500-0000-5694 Office Equipment $250 $250 $250 100-500-500-0000-5698 Equipment R&M $7,500 $28,000 $10,000 100-500-500-0000-7000 Filtration System R&M $2,500 $2,500 $3,000 100-500-500-0000-7005 Filtration System Supplies $4,000 $9,000 $9,000 100-500-500-0000-7020 Cost of Goods Sold $10,000 $14,000 $10,000 100-500-500-0000-6100 Capital Outlay $4,000 $3,850 TOTAL BOATYARD OPERATIONS $361,913 $358,203 $408,535 SANTA CRUZ PORT DISTRICT FY24 Budget ATTACHMENT C – FINANCIAL POLICIES Reserve Policy Investment Policy Unfunded Accrued Liability Policy (including CalPERS’ Employer Contribution Rates) 47 Santa Cruz Port District General Fund Reserve Policy Adopted November 24, 2015 Reserve Policy Objectives To strengthen the financial stability of the District against economic uncertainty, unexpected situations such as natural or man-made disasters, unanticipated drop in revenues, and other unforeseen emergencies or extraordinary circumstances that the Port District may face that are infrequent in occurrence. Target Amount Held in Reserve The Port District will strive to hold in reserve an amount equal to 25 percent of the District’s annual operating expenses in the current fiscal year’s adopted general fund budget. The District recognizes that reserve fund amount may fluctuate and may need to be rebuilt over time as needed. Funding Sources The reserve fund will generally come from one-time revenue and from excess revenues over expenditures. Examples of one-time revenue include infrequent sales of Port District assets, infrequent revenues from development and grants, or other sources that are typically non-recurring in nature. Conditions on Use of Reserves The use of reserves shall generally be limited to unanticipated, non-recurring needs. Reserve fund balances shall not be used for normal or recurring annual operating expenditures. The Port Director shall make recommendations to the Port Commission for use of reserves. Appropriations from this reserve fund shall require a resolution approved by the Port Commission. Requests for use of reserves shall occur only after exhausting the current year’s budgetary flexibility. The Port Director shall, within six months of its use, present to the Port Commission a plan and timeline for replenishing the reserve fund. .