Bill Mongelluzzo, Associate Editor | Jul 20, 2012 2:19PM EDT
Port of Oakland executives will begin making a 5 percent contribution to their retirement programs under the newly adopted fiscal year 2012-13 budget. Also, the Board of Port Commissioners approved a 5 percent across-the-board reduction in the commission’s expenses.
“This budget reflects our focus on fiscal responsibility, while addressing core operational needs and ensuring adequate funding for strategic activities today and tomorrow,” said Omar Benjamin, Oakland’s executive director.
Benjamin said he will join all senior management in making a 5 percent contribution to their retirement programs, which is the same investment that all port employees are being asked to make.
Members of the Board of Port Commissioners are not paid, but the commission said it will take steps to reduce overall expenses by 5 percent in areas such as travel, printing and various administrative expenses.
The port authority, which operates the seaport and Oakland International Airport, adopted a budget that projects flat to modest growth at both departments. Loaded container volumes are expected to increase 2 percent in the fiscal year ending June 30, 2013, and passenger traffic at the airport is expected to grow 1.5 percent.
Operating revenues are projected to increase 5 percent compared to fiscal year 2011-12. However, operating expenses are projected to increase 8.2 percent due to rising costs in areas such as health care, pensions and regulatory compliance.
Oakland’s updated five-year capital needs program includes $638 million in capital expenditures at the airport and seaport, including installation of shore power infrastructure and redevelopment of the former Oakland Army Base at the seaport.
Contact Bill Mongelluzzo at bmongelluzzo@joc.com. Follow him on Twitter @billmongelluzzo.