Finance: Los Angeles, Palm Beach
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Fiscal Year 2017/18 $1.17 Billion Budget Adopted by Port of Los Angeles
The Los Angeles Board of Harbor Commissioners has approved a $1.17billion fiscal year (FY) 2017/18 annual budget for the Port of Los Angeles that focuses on infrastructure improvements, supply chain efficiency, strong financial performance and stakeholder engagement.
The port’s fiscal year begins July 1.
For FY 2017/18, cargo volumes are expected to grow by 5.6 percent relative to the prior-year adopted budget Container throughput at the Port of Los Angeles reached a record 8,856,782 TEUs in calendar year 2016 and increased 10 percent from a year ago during January-April 2017.
"Our unprecedented cargo volumes over the last 15 months are evidence that our focus on supply chain efficiency and cargo handling improvements are paying off," said Port Executive Director Gene Seroka. "We continue to earn the confidence of shippers and are encouraged by the strength of our supply chain partners. This budget will help us stay laser-focused on targeted infrastructure improvements, technology solutions and strategic resource use to ensure that we are meeting the needs of our marine terminal customers and the carriers they serve."
Operating receipts—the principal mechanism for funding day-to-day port operations—are projected to total $475.4 million, an increase driven largely by shipping service revenue growth and other cargo-related activities. Shipping service revenues are expected to account for approximately 83.4 percent of operating receipts.
The FY 2017/18 Capital Improvement Program (CIP) budget of $97.7 million is lower than in prior years, due to less spending on major terminal and transportation-related projects that have been largely completed, including improvements at the TraPac and Yusen (YTI) terminals.
Among terminal Improvements slated for FY 2017/18 are an $11.2 million World Cruise Center Alternative Maritime Power® (AMP®) upgrade, $8.1 million for improvements at YTI (including a rail expansion of the terminal’s intermodal container transfer facility), and $2.0 million for environmental document preparation and the design of infrastructure improvements and terminal reconstruction at EverPort.
Public Waterfront and enhancement projects are budgeted at $18.2 million and will include such projects as the Harbor Boulevard Roadway Improvement Project and design of the Wilmington Waterfront Promenade near Banning’s Landing.
FY 2017/18 operating expenses are expected to be $256.5 million, a 3.0% increase from the previous fiscal year, driven mostly by increases in salaries and benefits, as well as city services.
According to the port, the approved budget enables it port to meet important financial metrics, including maintaining its AA debt rating, surpassing a 2.0 times debt service coverage, generating at least a 45 percent operating margin and preserving a level of cash reserves that is consistent with an AA-rated port.
Palm Beach Port Net Revenues at 10-year High, Cargo Tonnage Up 17 Percent in Fiscal 2015/16
The Port of Palm Beach’s comprehensive financial report for Fiscal Year 2015/16 shows the port’s total net position increased by 4 percent or $4.3 million, compared to FY 2014-15. That includes $1.8 million of income before capital contributions and $2.5 million of grants from federal, state and private sources. At the end of FY 2015/16, the unrestricted net position was 186 percent of cash operating expenses and the return on the unrestricted net position was 11 percent.
September/October is the port’s fiscal year.
Net operating revenues reached a 10-year high of $16.6 million, up 10 percent from the prior year and $5.5 million above their FY 2008/09 low, thanks mainly to increases in wharfage and dockage revenues. Operating expenses, excluding depreciation and amortization, which totaled $8.8 million in FY 2015/16, grew by inched upward at average of 3/10 of 1.0 percent annually during the past decade. Net contribution in 2016 increased to $1.8 million, up from $1.6 million in fiscal years 2013/14 and 2014/15.
Cargo throughput jumped 16.5 percent to just over 2.5 million short tons, bolstered by hefty gains by breakbulk (+84.5 percent), fuel oil (+85.4 percent), recycled steel (+39.5 percent, and sugar (+43.8 percent). Vessel calls also increased, by 24.7 percent. With Bahamas Paradise Cruise Line’s 1,800-passenger Grand Celebration calling every other day, the port’s passenger count jumped 43.3 percent to 502,876 for the full fiscal year.
During the last decade, the port refinanced three of its four debt issues, and long-term debt was reduced by 35 percent or $18 million. Interest payments fell from $2.8 million in FY 2005/06 to $1.5 million in FY 2015/16. In that same period capital asset investments totaled $60 million, net equity increased from $79 million to $111 million, and available cash more than doubled, from $12 million in FY 2005/06 to $25 million in 2015/16.
The Los Angeles Board of Harbor Commissioners has approved a $1.17billion fiscal year (FY) 2017/18 annual budget for the Port of Los Angeles that focuses on infrastructure improvements, supply chain efficiency, strong financial performance and stakeholder engagement.
The port’s fiscal year begins July 1.
For FY 2017/18, cargo volumes are expected to grow by 5.6 percent relative to the prior-year adopted budget Container throughput at the Port of Los Angeles reached a record 8,856,782 TEUs in calendar year 2016 and increased 10 percent from a year ago during January-April 2017.
"Our unprecedented cargo volumes over the last 15 months are evidence that our focus on supply chain efficiency and cargo handling improvements are paying off," said Port Executive Director Gene Seroka. "We continue to earn the confidence of shippers and are encouraged by the strength of our supply chain partners. This budget will help us stay laser-focused on targeted infrastructure improvements, technology solutions and strategic resource use to ensure that we are meeting the needs of our marine terminal customers and the carriers they serve."
Operating receipts—the principal mechanism for funding day-to-day port operations—are projected to total $475.4 million, an increase driven largely by shipping service revenue growth and other cargo-related activities. Shipping service revenues are expected to account for approximately 83.4 percent of operating receipts.
The FY 2017/18 Capital Improvement Program (CIP) budget of $97.7 million is lower than in prior years, due to less spending on major terminal and transportation-related projects that have been largely completed, including improvements at the TraPac and Yusen (YTI) terminals.
Among terminal Improvements slated for FY 2017/18 are an $11.2 million World Cruise Center Alternative Maritime Power® (AMP®) upgrade, $8.1 million for improvements at YTI (including a rail expansion of the terminal’s intermodal container transfer facility), and $2.0 million for environmental document preparation and the design of infrastructure improvements and terminal reconstruction at EverPort.
Public Waterfront and enhancement projects are budgeted at $18.2 million and will include such projects as the Harbor Boulevard Roadway Improvement Project and design of the Wilmington Waterfront Promenade near Banning’s Landing.
FY 2017/18 operating expenses are expected to be $256.5 million, a 3.0% increase from the previous fiscal year, driven mostly by increases in salaries and benefits, as well as city services.
According to the port, the approved budget enables it port to meet important financial metrics, including maintaining its AA debt rating, surpassing a 2.0 times debt service coverage, generating at least a 45 percent operating margin and preserving a level of cash reserves that is consistent with an AA-rated port.
Palm Beach Port Net Revenues at 10-year High, Cargo Tonnage Up 17 Percent in Fiscal 2015/16
The Port of Palm Beach’s comprehensive financial report for Fiscal Year 2015/16 shows the port’s total net position increased by 4 percent or $4.3 million, compared to FY 2014-15. That includes $1.8 million of income before capital contributions and $2.5 million of grants from federal, state and private sources. At the end of FY 2015/16, the unrestricted net position was 186 percent of cash operating expenses and the return on the unrestricted net position was 11 percent.
September/October is the port’s fiscal year.
Net operating revenues reached a 10-year high of $16.6 million, up 10 percent from the prior year and $5.5 million above their FY 2008/09 low, thanks mainly to increases in wharfage and dockage revenues. Operating expenses, excluding depreciation and amortization, which totaled $8.8 million in FY 2015/16, grew by inched upward at average of 3/10 of 1.0 percent annually during the past decade. Net contribution in 2016 increased to $1.8 million, up from $1.6 million in fiscal years 2013/14 and 2014/15.
Cargo throughput jumped 16.5 percent to just over 2.5 million short tons, bolstered by hefty gains by breakbulk (+84.5 percent), fuel oil (+85.4 percent), recycled steel (+39.5 percent, and sugar (+43.8 percent). Vessel calls also increased, by 24.7 percent. With Bahamas Paradise Cruise Line’s 1,800-passenger Grand Celebration calling every other day, the port’s passenger count jumped 43.3 percent to 502,876 for the full fiscal year.
During the last decade, the port refinanced three of its four debt issues, and long-term debt was reduced by 35 percent or $18 million. Interest payments fell from $2.8 million in FY 2005/06 to $1.5 million in FY 2015/16. In that same period capital asset investments totaled $60 million, net equity increased from $79 million to $111 million, and available cash more than doubled, from $12 million in FY 2005/06 to $25 million in 2015/16.
"The port’s continuing growth and increased financial strength over the past decade can be attributed to our board of commissioners’ unwavering commitment to securing new business for the port, partnering with our existing tenants by supporting their operational needs at the port, and maintaining a focused effort on controlling the port’s costs," said Blair J. Ciklin, chairman of the port district’s board of commissioners.
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