PORT OF STOCKTON

Port of Stockton Officials Adopt $52.9 Million Budget

June 9, 2016

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pos_skylineSTOCKTON — Port officials approved Monday a conservative budget for the fiscal year that began this month, projecting net income of $13.5 million on revenues of $52.9 million, up slightly from what is thought to be net income of $13.2 million on $51.4 million in revenue for the year past.

Michelle Bowling, port controller, said the agency anticipates $17.4 million in capital improvement projects for 2016-17, down from $24.3 million in capital outlays for the past fiscal year.

This coming year’s projects include the widening of Navy Drive, related to the Crosstown Freeway extension, as well as a new Navy Drive bridge, port dredging operations, utility improvements and security upgrades.

Most of the port’s revenue growth will come from lease payments on port warehousing or grounds, $26.1 million for the 2016-17 year, compared to $25 million last year.

“(Some) of our existing tenants are planning expansions,” port Director Richard Aschieris said. “There will be opportunities to bring in additional tenants as well.”

He noted that the port’s stock of more than 5 million square feet of warehousing space is 93 percent leased.
“We’re very close to being full,” he said.

“The good news is we have about 500 acres or so (of open land) that can still be developed,” Aschieris added.

Most of that land and warehousing is on the former Rough and Ready Island naval base, which the port acquired in 2000.

One of the biggest changes is expected to come in the port’s cash accounts. It expects to boost its cash holdings by fiscal year’s end by $4.4 million to total $22.5 million.

Following approval of the budget, commissioners also gave port administrators the go-ahead to borrow $8.2 million to pay for a recently completed rail expansion project.

The port will get the loan from Western Alliance Bank at about 5 percent interest.

Diane Baker, finance director, said the agency had initially sought funding from the Federal Railroad Administration, but that the commercial bank loan would better suit the port’s needs.

— Contact reporter Reed Fujii at (209) 546-8253 or rfujii@recordnet.com. Follow him on Twitter @ReedBiznews.

 

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