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Por t of Anacor tes
DRAFT
2021 Operat ing Budget & Capital Improvement Plan
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Table of Contents
Introduction MESSAGE FROM THE EXECUTIVE DIRECTOR 2 WHO WE ARE/WHAT WE DO 3 ORGANIZATIONAL CHART 4 COMMISSIONERS 5 COMMISSIONER DISTRICT MAP 6 THE BUDGET PROCESS 7 COVID-19 RESPONSE & IMPACTS 9
Operating Budget FINANCIAL OVERVIEW 11 2021 BUDGET SUMMARY INCOME STATEMENT 12 AIRPORT 13 MARINA 15 MARINE TERMINAL 17 PROPERTIES 19 2021 COMBINED OPERATING BUDGET 21
Capital Improvement Plan (CIP) OVERVIEW 23 CIP CONSOLIDATED SUMMARY 24 2021 CIP 25 2021 CAPITAL PURCHASES 29
Environmental Program ENVIRONMENTAL STEWARDSHIP 30 ENVIRONMENTAL SITES 31
Cash Flow Projections DEFINITIONS & ASSUMPTIONS 32 CASH FLOW PROJECTIONS 2021-2025 33
Long-Term Debt LONG-TERM DEBT 38
Property Tax TAX LEVY: TYPES & USES 40 2021 TAX AT A GLANCE 41
Supplemental Information 2021 BUDGET – SUPPLEMENTAL COMPARISONS 42
Cover Photos: (Top Left) Anacortes Airport runway aerial (Photo by Steve Berentson), (Top Right) Cap Sante Marina Harbor Office (Photo by Karla DeCamp), (Bottom Left) Aerial view at Marine Terminal Pier 2 (Photo by Dan Crookes), (Bottom Right) Waterfront Festival Dinner at Port Transit Shed (Photo by Karla DeCamp)
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Message from the Executive Director
Message from the Executive Director
Thank you for your interest in the Port of Anacortes’ 2021 budget. From our 1,000 slip Cap Sante Marina, to our deep water Marine Terminal, to our general aviation
commercial services Airport, to our Port Properties, the Port of Anacortes is a driver of regional economic vitality in the community. With this budget, you will see that the
Port has three overarching priorities that are evident in all of our endeavors:
1) Economic Benefits. The Port of Anacortes is not only a facilitator of domestic and international trade, but also a vital economic institution in and of itself. Despite
the economic challenges posed by COVID-19, the Port plans to invest nearly $15 million in its Capital Improvement Plan in 2021, completing a number of projects
permitted, bid, and started in 2020.
2) Environmental Stewardship. The Port is a committed environmental steward, rising above standards and leading the way across all lines of business. We do this
through our environmental clean-ups, voluntary Green Marine membership at the Marine Terminal, and successful implementation of the Clean Marina and
EnviroStars programs at our Marina. In partnership with the Washington State Department of Ecology, the Port anticipates completing over $6.5 million in
environmental remediation and monitoring activities across its six environmental cleanup sites in 2020 and 2021.
3) Community Leader and Convener. The Port of Anacortes is a mission-driven and responsible operator with Commissioners and dedicated staff leadership who bring
the community, stakeholders and tribal partners together to build partnerships that benefit the community.
In 2020, the Port continued to pursue our North & West Basin Redevelopment project. To that end, the Port has a Memorandum of Understanding with the City of Anacortes
to work collaboratively to achieve a long-range vision for the Marina Uplands, benefiting all of Anacortes and its residents, and to provide for maximizing the highest and
best uses of our Marina properties and the return of the Transit Shed to industrial marine usage.
Despite the impacts of COVID throughout the world, Cap Sante Marina continues its growth as the premier destination marina in the Pacific Northwest. A slow spring was
followed by a record setting summer, keeping Cap Sante as the busiest public marina in the state. It continues to be a hub of activity and economic driver in the Anacortes
community, hosting the first virtual boat show in the United States, the NMTA Anacortes Boat & Yacht Show. In 2020, the Port started procurement and reconstruction of
A-Dock, anticipating a new world-class commercial dock in spring of 2021.
The Marine Terminal was hardest hit in 2020 due to the drop in crude oil prices nationally. Petroleum coke and prilled sulfur remain the primary cargoes shipped from Pier
2, the largest of our shipping terminal piers at the Marine Terminal. In 2020, the Port commissioned a Marine Terminal Modernization Study that will help identify key areas
to pursue and recapitalize in the future to help land other bulk product and diverse cargoes that require deep-water access. Two major repair projects were started in 2020,
including Curtis Wharf corrosion repairs and steel piling cathodic protection and Pier 1 piling and decking repairs.
The Port achieves a great deal in cooperation with our valued partners, including the City of Anacortes, the Anacortes Chamber of Commerce, the Northwest Marine Trades
Association, Pacific Northwest Waterways Association, the Washington Public Ports Association, the Anacortes Waterfront Alliance, the Economic Development Alliance of
Skagit County, Port tenants, Tribes, Skagit County, the Port of Skagit and the residents of our Port district.
If you have any questions or comments regarding the Port, please call me at (360) 293-3134.
Daniel C. Worra
Executive Director
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Who We Are/What We Do
Who We Are/What We Do
Who We Are The Port of Anacortes is a municipal corporation of the State of Washington, created in 1926 under provision of the Revised Code of Washington (RCW Title
53 et seq.), to provide for the development and maintenance of harbors and terminals, promote tourism and foster economic activity in its district. With
one of eight natural deep water marine terminal facilities in Puget Sound, its nearly 1,000 slip marina, and its roughly 80 acres of commercial properties,
the Port is instrumental to the success and economic development of the community. The Port is independent from other local or state governments and
has geographic boundaries that consist of Fidalgo, Guemes, Cypress, Sinclair, and neighboring islands, and a small strip of land bordering Padilla Bay up to
and including Samish Island.
A five-member Board of Commissioners elected for four-year terms by Port District voters governs the Port. The Commission delegates administrative
authority to an Executive Director and staff to conduct operations of the Port. The County levies and collects taxes on behalf of the Port as determined by
the Board of Commissioners and acts as treasurer for the Port as defined under RCW 53.36.010.
Industrial Development Corporation of the Port of Anacortes. The Industrial Development Corporation, a public corporation, is authorized to facilitate the
issuance of tax-exempt nonrecourse revenue bonds to finance industrial development within the corporate boundaries of the Port. Revenue bonds issued
by the Corporation are payable from revenues derived as a result of the industrial development facilities funded by the revenue bonds. The bonds are not
a liability or contingent liability of the Port or a lien on any of its properties or revenues other than industrial facilities for which they are issued.
The Port of Anacortes’ five member Port Commission serves as the Board of Directors for the Industrial Development Corporation.
What We Do
The Port provides quality jobs, international trade connections, a strong industrial land base, and economic stability by producing revenue for state and
local services. The Port is authorized by Washington law (RCW Title 53.08) to provide and charge rentals, tariffs and other fees for docks, wharves and similar
harbor facilities, including associated storage and traffic handling facilities for waterborne commerce. The Port may also provide freight and passenger
terminals and transfer and storage facilities for other modes of transportation, including air, rail and motor vehicles. The Port may acquire and improve
lands for sale or lease for industrial or commercial purposes, and may create industrial development districts.
Mission Statement: In partnership with public agencies and private business, develop and manage facilities and services which stimulate private job creation
and commerce, while protecting the quality of life, needs and desires of area residents.
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Organizational Chart
Organizational Chart
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Commissioners
Commissioners
Ken Goodwin Commission President 2020 District 1 Term Expires: December 31, 2021 Commissioner Goodwin was elected Port Commissioner in 2017 and began his term in January 2018. A graduate of the University of Washington, with
bachelor’s and master’s degrees in business administration and accounting, Mr. Goodwin’s career includes 40 years as a Certified Public Accountant,
owner/operator of a chain of retail stores in remote Alaska, Director of Finance for the Alderwood Water and Wastewater District, and Commissioner of
the Woodinville Water District for 17 years. He is a Vietnam veteran and served on the Port’s Marina Advisory Committee before becoming Commissioner.
Jon Petrich Commission Vice President 2020 District 2 Term Expires: December 31, 2021 Commissioner Petrich was elected Port Commissioner in 2017 and began his term in January 2018. Commissioner Petrich is employed as a Project
Supervisor and licensed Lead Vessel Operator at National Response Corporation (NRC). He has two bachelor’s degrees from Eastern Washington University
in finance and economics.
Joe Verdoes Commissioner 2020 District 3 Term Expires: December 31, 2023 Commissioner Verdoes was initially elected Port Commissioner in 2015, and began his term in January 2016. Mr. Verdoes was subsequently re-elected in
2019 and began his second term in 2020. Mr. Verdoes is self-employed as a Puget Sound commercial fisherman and local businessman. He has a bachelor’s
degree in business administration from the University of Washington and a master’s degree in developmental studies from Deakin University, Geelong,
Australia. Mr. Verdoes was a member of the Port’s Marina Advisory Committee for seven years. Before becoming a commercial fisherman in 1994, he was
employed as an Economic Development Officer for a small Australian community and operated a dairy farm locally.
Bonnie Bowers Commission Secretary 2020 District 4 Term Expires: December 31, 2023 Commissioner Bowers was elected Port Commissioner in 2019 and began her term in January 2020. Commissioner Bowers is a graduate of Washington
State University and the FBI National Academy. She retired as Police Chief in Anacortes after a 33 year career in public safety. She has a keen interest in
economic development and green industry. Commissioner Bowers is a longtime member of the Anacortes Rotary Club.
Katherine “Kathy” Pittis Commissioner 2020 District 5 Term Expires: December 31, 2021 Commissioner Pittis was elected Port Commissioner in 2017 and began her term in January 2018. Commissioner Pittis had a 21-year career at the Port of
Anacortes, serving in various leadership roles. She served on the Anacortes School Board and on numerous community and regional committees, including
the Governor’s Southern Resident Killer Whale Task Force. Commissioner Pittis is currently serving as the Vice President of the Washington Public Ports
Association Executive Committee.
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Commissioner District Map
Commissioner District Map
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The Budget Process
The Budget Process
The budget has several major purposes. It converts the Port’s policies and plans, including its Strategic and Comprehensive plans, into services and future
capital improvement projects. It serves as a vehicle to communicate these plans to the public, and once adopted by the Commission, becomes the work
plan to be accomplished during the next fiscal year.
The annual operating and capital budgets are a forecast of expected resources and the purposeful distribution of those resources. This includes the rate of
taxation for the coming fiscal year. Typically, the operating budget is developed based on historical trends in revenue and expenses, information from
customers and tenants, market projections, and key economic and regulatory assumptions. The 2021 budget was developed in much the same way,
however, the outbreak of the 2019 novel coronavirus (“COVID-19”) is a significant event that has had and will have ongoing, material effects on the finances,
operations, and economy of the Port. (Please see the COVID-19 Response & Impacts section of this document for information and expectations about the
effects of COVID-19, including projected revenues of the Port.) While the Port’s current financial outlook remains positive, the Port cannot predict the
duration and extent of the COVID-19 public health emergency, or quantify the magnitude of the impact on the regional and local economy. This economic
uncertainty as a result of the current global pandemic, shifts in markets (especially those affecting our local refineries), considerable capital requirements
for the Port’s aging infrastructure and development
plans, continued regulatory requirements and
environmental risks remain challenging.
Citizen involvement and understanding of the
budget is a major part of the review process. The
Budget Calendar on the following page provides an
overview of the budget process and important dates
regarding its review and adoption.
Jill R. Brownfield, CPA Director of Finance & Administration
Photo: Cap Sante Marina (Photo by Rakan AlDuaij)
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The Budget Process
BUDGET CALENDAR July
16 Regular Commission Meeting - 2nd Quarter Financial Results 22 Mid-Year Update & Budget Kick-Off
August
6
Regular Commission Meeting 10
Departments submit draft budgets to Finance
11-14
Departmental budget workshops 20
Regular Commission Meeting
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5 Year Draft CIP submitted to Finance 28 Preliminary 5 Year Cash Flow complete 31 Directors/Project Managers budget workshop CIP/Cash Flow
September
3 Regular Commission Meeting - Tax Levy Discussion 9 Final 5 Year CIP and Cash Flow complete
17 Regular Commission Meeting - Budget Assumptions 18 Draft budget available to Commission
October
1 Special Commission Meeting - Budget Study Session 7 Budget revisions from Study Session complete 9 Preliminary budget available to public
15 Regular Commission Meeting - 3rd Quarter Financial Results 21-22 1st public notice; budget hearing scheduled 28-29 2nd public notice; budget hearing scheduled
November
5 Regular Commission Meeting - Budget Public Hearing & Adoption 6 Certify to County Assessor amount of taxes levied; publish final budget 9 Adopted budget available to public
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COVID-19 Response & Impacts
COVID-19 Response & Impacts
Background The COVID-19 pandemic is affecting many parts of the world, including the State, the County, and the Port. Beginning January 31, 2020, and continuing
through the early part of March, federal, state and county officials declared states of emergency in response to the COVID-19 pandemic. On March 19, 2020,
the Port Commission adopted Resolution No. 1361, declaring COVID-19 a civic public health emergency, and therefore giving the Executive Director authority
to exercise emergency powers to ensure the continued operation of the Port and its facilities in response to COVID-19. The State Governor has issued a
series of proclamations designed to limit social interactions, including orders requiring or encouraging individuals, governments and businesses to take
certain precautionary measures designed to prevent the spread of COVID-19. On March 23, 2020, the State Governor issued a statewide “Stay Home, Stay
Healthy” proclamation, requiring individuals to stay home except for essential activities, banning social and other gatherings, and closing all businesses with
certain exceptions for essential businesses. Washington State currently is following a phased re-opening approach. As of the budget adoption date, Skagit
County is in Phase 2 of the re-opening phases. The Port has and continues to coordinate its
response to the pandemic with the Washington State Department of Health, as well as the
local county public health department.
Operations Ensuring maximum protection for the health and safety of Port stakeholders has been the
Port’s top priority during this public health emergency. On March 20, 2020, the Port closed
its Main Port Office and Harbor Masters Office to the public, maintaining normal business
hours to serve customers via phone or email. All administrative and other staff who could
feasibly perform their duties remotely, were sent home to do so. Facilities, outside Marina
operations, and security staff were deemed essential to keep Port operating areas open and
responsive to the needs of the Port’s tenants, customers and guests. All meetings, including
regular and special Commission meetings, became virtual as of March 19, 2020.
The Port believes it has a critical role in assisting the community continue through the phased reopening and safely advancing toward the “new normal.” In
July 2020, Port Commissioners and staff adopted a Start Safe Return Plan, aligned with Washington state guidance, which is an implementation tool that
ensures Coronavirus Prevention Practices are deployed to safeguard all stakeholders from biological hazards and address known hazards at all Port facilities.
Key elements include education, social distancing, cleaning and disinfecting, hand washing, and rigid protocol around sick and exposed employees. The Port
continues communicating to customers, visitors, and stakeholders, the importance of staying safe, such as: practicing good hygiene (hand washing, use of
disinfectants, avoiding hand shaking), social distancing, wearing a mouth and nose covering when around groups of people in public and staying home if
feeling sick or unwell.
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COVID-19 Response & Impacts
Potential Financial Impacts The Port did not formally amend its 2020 adopted budget, but anticipates a potential net adverse impact of approximately $0.6 million as a result of lost
operating income and additional expenses, net of Federal relief. (Please see the Supplemental Information section of this document which estimates 2020
results alongside 2020 budget.) Despite this, the Port currently estimates a positive net operating income in 2020 of approximately $2.3 million (before
depreciation) and has continued to move forward with its capital improvement initiatives as originally planned.
The Port has experienced direct expenses associated with COVID-19 primarily as a result of information technology purchases including additional software
licenses and hardware purchases (to support remote work), temporary essential personnel additional pay (in excess of their regular pay rates) for employees
who were unable to telework, personal protective equipment, a cleaning contract with an outside vendor, and a business tenant rent relief program. The
Port’s 2021 budget forecasts continued expenses related to personal protective and safety equipment, increased cleaning and sanitation, and anticipates
the addition of a full-time custodian position.
The Port has also seen individual revenue streams impacted by COVID-19, primarily as a result of restrictions placed on people to stay home, avoid travel,
not gather, etc. In particular, the price of oil has fallen as a result of a significant decline in global demand. As local refineries decrease production, the Port
anticipates decreased exports of refinery by-products, petroleum coke and sulfur. While, the ultimate impacts of COVID-19 on bulk product exports is
unknown at this time, the Port has estimated a 40% reduction in 2020 of its original budgeted 359,000 metric tons. In 2021, the Port assumes similar results
to that of 2020, and has forecast 238,800 metric tons of petroleum coke and sulfur exports.
Restrictions on gatherings resulted in event cancellations beginning in mid-March 2020 and are currently anticipated to continue into 2021. All of the Port-
hosted community events for 2020 were cancelled impacting both direct venue rental revenue and sponsorship revenues. The Port has not experienced
and does not currently anticipate any material lease defaults among its tenants.
The impacts to the Marina include reduction in guest moorage, use of boat launches, RV nights and fuel sales. Permanent moorage at the Marina has not
been impacted thus far by the pandemic. Guest moorage, which made up 18% of total moorage in 2019, saw a decline of about 25% in guest boater nights
through July 31, 2020, but has since shown signs of recovery.
Due to revenues derived from property and ground leases and T-hangar rentals, the Port predicts that Airport revenues will not be negatively impacted.
Additionally, the Port received $30,000 in Federal Aviation Administration funding award through the Coronavirus Aid, Relief and Economic Security (CARES)
Act, which will offset any potential decrease in Airport revenues.
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Financial Overview
Financial Overview
Revenues
The 2021 budget reflects total operating revenues of $15.150 million, a decrease of approximately 15% from the 2020 adopted budget. As discussed in the
previous pages, the COVID-19 public health emergency has had and will have ongoing, material effects on the finances, operations, and economy of the
Port. While the full impact of the COVID-19 pandemic on the Port and the regional economy is uncertain, the Port anticipates a continued reduction in
demand for oil, thus decreasing the price of fuel and export volumes of petroleum coke and sulfur. Restrictions on travel and social gatherings are also
anticipated to impact event venue rentals and Port-sponsored events. Conversely, Marina activity shows signs of full recovery and the Port maintains a
current waitlist of over 250 customers seeking permanent moorage. Recent property acquisitions and environmental remediation efforts provide
opportunities for increased property lease and marine terminal business. This, along with sufficient debt capacity, is contributing to aggressive future cash
flow projections and capital improvement initiatives. 55% of the total projected 2021 operating revenue is from the Marina, 31% is from the Marine
Terminal, 11% from Properties and the remaining 3% from the Airport.
Non-operating revenues consist primarily of property tax collections. As directed by the Port Commission, property tax levies fund property acquisition,
industrial development including environmental costs, debt service for general obligation bonds, and public access improvements. The budgeted levy of
$1.673 million reflects a rate of $0.21 per $1,000 of the Port district’s preliminary total assessed value.
Expenses
Similar to the reduction in operating revenues, the 2021 budget projects operating expenses of $15.104 million, a 13% decrease from the 2020 budget.
Since not all costs are fixed, increases or decreases in revenues will have a similar effect on operating expenses. On the other hand, while the rate of inflation
has slowed as a result of the global pandemic, some costs, such as insurance have continued to increase. Further, the Port remains committed to process
improvement and providing safe, productive facilities with excellent customer service. The 2021 budget reflects increased expenses associated with
additional communications outreach, facilities maintenance staffing, records retention efforts, and proactive maintenance across all operating areas.
Included in total operating expenses is approximately $2.436 million in depreciation, general and administrative (G&A) expenses of $3.096 million, and
facilities expenses of $1.054 million. G&A expenses are allocated to each operating area as a percentage of total operating expenses. Facilities expenses
are allocated based on direct labor hours.
The 2021 non-operating expenses consist primarily of interest expense on general obligation bonds. The Port has two outstanding general obligation bonds,
totaling $10.385 million. Annual debt service payments in 2021 total $1.572 million, and are anticipated to be paid from operating funds.
Net Income The 2021 budget reflects a net income, before environmental and capital grants, of $1.630 million, a slight improvement over the Port’s revised expectations
for 2020 of $1.379 million.
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2021 Budget Summary Income Statement
2021 Budget Summary Income Statement
Photo: MV Bluefin Research Support Vessel Berthed at Pier 2 (Photo by Port Staff)
OPERATING REVENUES Airport $ 430,637 Marina 8,392,800 Marine Terminal 4,737,524 Properties 1,589,288
Total Operating Revenues 15,150,249 OPERATING EXPENSES Airport 567,430 Marina 6,796,661 Marine Terminal 3,877,869 Properties 1,426,699
Total Operating Expenses 12,668,659 Net Operating Income Before Depreciation 2,481,590
Total Depreciation 2,435,800
NET OPERATING INCOME 45,790
Non-Operating Revenues 1,821,860 Non-Operating Expenses (237,963)
NET NON-OPERATING 1,583,897
Net Income Before Environmental 1,629,687
Environmental Grants and Recoveries 1,828,126 Environmental Expenses (2,481,533)
NET ENVIRONMENTAL (653,407) Capital Grants 2,440,800
NET INCOME $ 3,417,080
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2021 Operating Budget: Airport
Airport
Overview: The Anacortes Airport serves as a vital link for postal, commercial, recreational and passenger services, primarily to the San Juan Islands. The
Airport is also strategically located for emergency services in the case of natural disasters in and around the surrounding areas.
Building and property leases, hangar rentals and fuel sales comprise the majority of Airport revenues. While significant declines in the price of oil and State-
imposed travel restrictions due to the COVID-19 global pandemic contributed to reduced gross fuel sales in 2020, other Airport revenue streams have been
unaffected.
The Port owns and leases forty hangars. A consistent waitlist over the past few years indicates steady demand for this hangar space, despite statistics, which
show decreasing numbers of private pilots in the United States. Core building and property tenants, most of which are in long-term lease agreements, are
Micro AeroDynamics, Aeronautical Services, Northwest Marine Technology, Inc., Rugby Aviation DBA San Juan Airlines, and 48 Degrees North Aviation. Of
note, Northwest Marine Technology, Inc. recently signed a new 30-year lease agreement and constructed a 7,900 square foot building, including a hangar,
enabling eight new full-time employees. In recognition of their business expansion, they were selected as the Port’s Economic Development Partner Award
for 2020.
Budgeted revenues in 2021 total $431,000, an approximate 2% increase over 2020-budgeted revenues. Based on the downturn in the economy as a result
of COVID-19 and current Consumer Price Index (CPI) data, no CPI increases have been factored into any of the Port’s long-term leases in 2021. Due to
consistent demand, 10% rate increases have been forecast in hangar rentals. Fuel sales have been forecast conservatively, using a trailing twelve month
average of fuel cost, reduced by nearly 20% to reflect volume decreases through July 31,
2020.
2020 Improvements and 2021 Significant Initiatives:
In 2020, the Port, in cooperation with the FAA, completed a comprehensive obstruction
survey to enable future projects within the Airport Improvement Plan. In response to
the COVID-19 pandemic, Congress adopted the Coronavirus Aid, Relief, and Economic
Security (CARES) Act. As part of this act, the Port was awarded $30,000 in grant monies
administered through the FAA, which were used to fund parking area pavement
improvements. In 2021, the Port will wrap-up stormwater management feasibility work
and begin pre-construction elements on the selected approach to improvements.
Utilizing FAA grant awards, the Port will complete north tie down apron improvements,
and lastly, the Port will complete additional pavement or asphalt improvements outside
the operational fence.
Photo: Airport Asphalt Project (Photo by Port Staff)
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2021 Operating Budget: Airport
Photos: (Top) Airplane Flying Over the San Juans, (Bottom) Airport Fog Seal Project (Photo by Port Staff)
OPERATING REVENUES Building & Ground Leases $ 153,544
T Hangar Storage 121,943
Fuel Sales 143,750
Other 11,400
Total Operating Revenues 430,637
OPERATING EXPENSES Fuel for Resale 125,000
Facilities & Operations 301,225
G&A Allocation 141,205 Total Operating Expenses 567,430
Net Operating Loss Before Depreciation (136,793)
Depreciation 311,751
NET OPERATING LOSS $ (448,544)
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2021 Operating Budget: Marina
Marina
Overview: Located in Fidalgo Bay and containing nearly 1,000 boat slips, Cap Sante Marina is one of the Northwest’s premier boating destinations as well
as home to many local commercial fishermen, tour companies, yacht brokerage firms, and other commercial marine businesses. Proximity to the downtown
corridor, exemplary customer service, competitive fuel pricing, and quality amenities result in thousands of visiting boaters from early spring to late fall each
year. Typically, events such as the Anacortes Chamber of Commerce’s Waterfront Festival, the NMTA Anacortes Boat and Yacht Show, and the Summer
Concert Series draw numerous visitors and community members to the Marina and downtown Anacortes businesses. Based on the COVID-19 pandemic
restrictions and guidance, the Port cancelled all community events scheduled in 2020, with the largest impact being on Marina revenues in the months of
April, May, and June.
Moorage revenues and fuel sales comprise over 90% of the Marina’s total revenues. Significant declines in the price of oil and travel restrictions due to
COVID-19 contributed to reduced gross fuel sales in 2020, as well as declines in guest moorage nights. However, permanent moorage, which represents
80% of total moorage, was not affected. As of July 31, 2020, the waitlist for permanent moorage numbered more than 250 customers, and those seeking
slips larger than 36 feet in length can expect a 12-24 month wait. The remaining 10% of Marina revenues consists of items such as; boat launch fees, boat
trailer and recreational vehicle parking, web locker and outside gear storage rent, and retail sales. While many of these categories were impacted by COVID-
19 in the spring and early summer of 2020, the reopening of commercial and recreational crabbing and families seeking outdoor activities such as boating
contributed to typical volumes in July and August.
Budgeted revenues in 2021 total $8.393 million. While the original 2020 budget forecast revenues of about $9.223 million, revised revenues as a result of
COVID-19 are estimated at $7.996 million. Thus, the 2021 budget is an increase of about 5% over projected 2020 results. Key assumptions include;
recreational permanent moorage rate increases of 3-6%, depending on slip size, 3% guest moorage rate increases, and no increase for commercial moorage
customers. Fuel volumes are expected to return to pre-COVID amounts, but at prices of only about 5% ahead of 2020 averages and the Port anticipates
partial closure of its RV parking area due to redevelopment planned for 2021.
2020 Improvements and 2021 Significant Initiatives:
The Marina underwent many small, but crucial, process improvements and maintenance projects in 2020, including electrical work on North-end docks to
the addition of fiber optics for greater connectivity and reliability in processing transactions to remote offices and a Marina-wide Wi-Fi upgrade of
infrastructure originally installed in 2013. The Port also completed a pier expansion at the entrance to P and Q docks for pedestrian and small boat launch
users’ safety.
The much-anticipated A-Dock recapitalization project is underway with completion slated for spring 2021. The Port also anticipates completing electrical
service upgrades at B-dock, primarily used by commercial fishermen and other commercial marine businesses, and to install an additional high speed fuel
dispenser at the fuel dock. The north basin docks, specifically O, P & Q docks, as well as T-Dock, are the next in line for recapitalization and funds for planning,
permitting, and remedial repairs in the short-term, round out the Port’s 2021 capital plans.
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2021 Operating Budget: Marina
OPERATING REVENUES Moorage $ 5,052,895
Fuel Sales 2,553,842
Operating Grants 3,780
Other 782,283
Total Operating Revenues 8,392,800
OPERATING EXPENSES
Wages & Benefits 1,065,371
Fuel for Resale 2,000,660
Facilities & Operations 2,070,080
G&A Allocation 1,660,550
Total Operating Expenses 6,796,661
Net Operating Income Before Depreciation 1,596,139
Depreciation 965,692
NET OPERATING INCOME $ 630,447
Photos: (Left) Cap Sante Marina voted 2020 Best Moorage Facility, (Right) Cap Sante Marina’s Fuel Dock, Fido’s Fuel
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2021 Operating Budget: Marine Terminal
Marine Terminal
Overview: The Port’s Marine Terminal facility consists of three deep-water working piers, Pier 1, Pier 2, and Curtis Wharf. The Marine Terminal achieves its
revenues through cargo shipments, short and long- term lease of dock space, other ground leases and transient dockage revenue from berthing of vessels,
barges and tugboats.
Pier 1 houses the Port’s historic Transit Shed, currently used as a community events center and administrative offices, as well as providing moorage for a
variety of vessels. In addition, Dakota Creek Industries, a primary tenant of the Port, uses Pier 1 for its floating dry dock in support of its shipbuilding and
repair operations while M&M Seafood operates a seafood processing area.
Pier 2, the primary use of which is exporting dry bulk cargoes, is the most active part of the Port’s Marine Terminal. At 37 ½ feet draft, it is the Port’s deepest
pier. Pier 2 has 14 acres of paved asphalt-cement surfacing, a self-contained stormwater management system, a 460-foot concrete cement frontage pier,
and a stationary ship loader. Currently, the Port’s primary bulk product commodities are petroleum coke and prilled sulfur; both of which are by-products
of the refining process.
Curtis Wharf is a working wharf and dock providing periodic vessel moorage to a range of commercial users, including the American Spirit and American
Constellation cruise ships, which visit throughout the spring, summer, and fall, as well as home to a seafood processing facility.
Budgeted revenues in 2021 total $4.738 million. As mentioned previously, the COVID-19 global pandemic has had a devastating effect on oil prices as a
result of plummeting demand. While the true impact is unknown at this time, the Port estimates bulk product exports of 220,000 metric tons in 2020,
roughly 40% less than originally forecast. In 2021, bulk product shipments are conservatively estimated at 238,800 metric tons. Tariff increases for other
Marine Terminal activity, such as dockage, has been estimated at 3%, to be adjusted mid-year. The Port expects to welcome back American Cruise Lines to
Curtis Wharf for the 2021 sailing season based on recent berthing reservations.
2020 Improvements and 2021 Significant Initiatives:
In 2020, the Port received final permitting and commenced construction on Pier 1 Piling Repairs and Curtis Wharf Corrosion Repairs and Cathodic Protection.
Both projects are anticipated to be complete by year-end. The Port also completed a Marine Terminal Modernization Feasibility Study, which was funded in
part by a Community Economic Revitalization Board grant. Recommendations and findings from the study will help to guide the Commission and staff on
future capital investments.
The 2021 Capital Improvement Plan forecasts about $1 million in infrastructure improvements to various Marine Terminal facilities, including Phase 2 of
Corrosion Repairs and Cathodic Protection on Curtis Wharf, paving the street and entrance to Curtis Wharf, a Port Maintenance Building Extension to protect
critical assets from the elements and Pier 2 cleat design and replacement.
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2021 Operating Budget: Marine Terminal
OPERATING REVENUES Terminal Services $ 1,528,128
Handling 2,265,226
Ground Leases 536,386
Other 407,784
Total Operating Revenues 4,737,524
OPERATING EXPENSES
Wages & Benefits 32,784
Longshore/Stevedoring 2,266,126
Facilities & Operations 633,529
G&A Allocation 945,430 Total Operating Expenses 3,877,869
Net Operating Income Before Depreciation 859,655
Depreciation 835,980
NET OPERATING INCOME $ 23,675
Photos: (Bottom) Lakeside Industries Marine Terminal Asphalt Repairs in May 2020 Supporting DCI, Transpac & Cortland Tenants, (Top) MV Nord Madeira First Port of Call Celebration in February 2020
19
2021 Operating Budget: Properties
Properties
Overview: Properties consists of building and ground leases not associated with the other three operating areas, rental of the Port’s Transit Shed and
Seafarers’ Memorial Park Building, and revenue and expense related to Port-sponsored events.
Over 90% of Properties’ revenues are determined by already negotiated lease rates (many long-term) with increases set by CPI or by a fixed rate. Concerns
for Port tenants and their businesses at the onset of the COVID-19 pandemic resulted in a Commission-adopted rent deferral program in March 2020. The
program, which offered deferment of up to three months’ worth of rent (exclusive of leasehold tax) to year-end, penalty-free, received low participation
indicating financial strength and business continuity amongst Port tenants. However, CPI increases have virtually disappeared as a result of the slowdown
in the economy. The Port has assumed no major lease defaults and assumed no CPI increases in its lease rates for 2021 budgetary purposes.
The remainder of Properties’ revenues comes from venue rentals and sponsorship and ticket sales for Port-sponsored events. State-mandated restrictions
on social gatherings and community events resulted in the cancellation of all events beginning in mid-March 2020. It is anticipated that these cancellations
continue throughout year-end. Rental activity for 2021 is assumed to resume in the 3rd quarter.
Because most Port-sponsored events occur in the latter half of the year, the Port anticipates
hosting all of its typical events in 2021, though with reduced sponsorship revenues.
2020 Improvements and 2021 Significant Initiatives:
In 2020, the Port continued North and West Basin Redevelopment planning efforts. This project,
which involves repurposing the Transit Shed to a marine industrial use and moving the Port’s
Events Center and Administrative Offices to the Marina’s North and West Basin, also includes
an RV Park (with full amenities), establishment of a ground lease pad for potential future
developments, and enhancement of waterfront public access areas. The Port is working towards
100% design and plans to begin the first phase of development, to include the redevelopment
of the RV Park, an RV Park Restroom Facility, and improved vehicle parking near J-K-L Docks in
2021.
Developing properties to the highest and best use remains a top priority for the Port. In 2019,
the Port purchased three properties; the Rockwell site, consisting of nearly 7 acres of zoned
light manufacturing property near the Airport, the N Avenue/3rd Street property near Curtis
Wharf, and the Bartholomew property, consisting of over 4 acres of zoned heavy manufacturing
property including five warehouses and office buildings. In 2020, the N Avenue/3rd Street property was renovated in order to relocate an existing Port tenant
and the Bartholomew property has been 60% leased to various business enterprises. The Port’s 2021 capital plan includes preparation of the Rockwell site
for future development for which the Port is already receiving inquiries from potential tenants. Photo: RV Park Aerial
20
2021 Operating Budget: Properties
OPERATING REVENUES Property Rents $ 1,487,384
Venue/Event Revenues 50,770
Operating Grants 12,000
Other 39,134
Total Operating Revenues 1,589,288
OPERATING EXPENSES
Wages & Benefits 532,657
Facilities & Operations 544,892
G&A Allocation 349,150 Total Operating Expenses 1,426,699
Net Operating Income Before Depreciation 162,589
Depreciation 322,377
NET OPERATING LOSS $ (159,788)
Photos: (Top) Bartholomew Property Acquisition, (Bottom Left) Port of Anacortes Summer Concert Series voted 2020 Best Live Entertainment Venue (Bottom Right) Anthony’s at Cap Sante Marina, Anthony’s Cabana, and Port of Anacortes Esplanade Tables
21
2021 Combined Operating Budget
2021 Combined Operating Budget
Airport Marina Marine
Terminal Properties Non-Op Totals
OPERATING REVENUES T Hangar Storage $ 121,943 $ - $ - $ - $ - $ 121,943
Fuel Sales 143,750 2,553,842 - - - 2,697,592
Moorage - 5,052,895 - - - 5,052,895
Terminal Services - - 1,528,128 - - 1,528,128
Handling - - 2,265,226 - - 2,265,226
Building & Ground Leases/Rents 153,544 - 536,386 1,487,384 - 2,177,314
Venue & Event Revenues - - - 50,770 - 50,770
Operating Grants - 3,780 - 12,000 - 15,780
Other 11,400 782,283 407,784 39,134 - 1,240,601
TOTAL OPERATING REVENUES 430,637 8,392,800 4,737,524 1,589,288 - 15,150,249
OPERATING EXPENSES Wages & Benefits - 1,065,371 32,784 532,657 - 1,630,812
Longshore/Stevedoring - - 2,266,126 - - 2,266,126
Fuel for Resale 125,000 2,000,660 - - - 2,125,660
Facilities & Operations 301,225 2,070,080 633,529 544,892 - 3,549,726
G&A Allocations 141,205 1,660,550 945,430 349,150 - 3,096,335
TOTAL OPERATING EXPENSES 567,430 6,796,661 3,877,869 1,426,699 - 12,668,659
NET OPERATING INCOME (LOSS) BEFORE DEPRECIATION (136,793) 1,596,139 859,655 162,589 - 2,481,590
Depreciation 311,751 965,692 835,980 322,377 - 2,435,800
NET OPERATING INCOME (LOSS) $ (448,544) $ 630,447 $ 23,675 $ (159,788) $ - $ 45,790
22
2021 Combined Operating Budget (continued)
Airport
Marina Marine
Terminal Properties Non-Op Totals
NON-OPERATING Revenues $ - $ - $ - $ - $ 1,821,860 $ 1,821,860
Expenses - - - - (237,963) (237,963)
NET NON-OPERATING - - - - 1,583,897 1,583,897
NET INCOME (LOSS) BEFORE ENVIRONMENTAL (448,544) 630,447 23,675 (159,788) 1,583,897 1,629,687
ENVIRONMENTAL ACTIVITY Grants and Recoveries - - - - 1,828,126 1,828,126
Expenses - - - - (2,481,533) (2,481,533)
NET ENVIRONMENTAL ACTIVITY - - - - (653,407) (653,407)
Capital Grants 440,800 500,000 - 1,500,000 - 2,440,800
NET INCOME (LOSS) $ (7,744) $ 1,130,447 $ 23,675 $ 1,340,212 $ 930,490 $ 3,417,080
23
Capital Improvement Plan Overview
Overview
Port Commissioners and Staff developed the 2021 Capital Improvement Plan (CIP) through a robust scoring effort in 2019 for budget years 2020-2021. This biennial process involves identifying all potential projects, including previously unfunded or backlogged projects, some new, and several ongoing projects. Some of the projects date back to the Port’s 2008 Comprehensive Plan. The project inventory is reevaluated and prioritized every other year to best meet the Port’s priorities. The 2021 CIP continues to focus on deferred maintenance across all operating areas, along with new redevelopment opportunities within the Marina and newly acquired properties. At the Airport, the Port will continue planning efforts towards the maintenance and improvement of the stormwater detention pond, north tie down apron improvements including pavement rehabilitation and installation of subsurface edge drains. Additionally, pavement improvements outside the operational fence will complete the pavement rehabilitation project started in 2020. At the Marina, work will continue on the A-Dock Recapitalization project. First estimated to be completed by 2019, the intensive permitting process delayed the project, which is now on-track for completion in 2021. The Port also anticipates completing upgrades to electrical service at B-Dock and installing an additional high speed fuel dispenser at the fuel dock to increase capacity. As a follow-on to a recent condition report and stakeholder outreach, 2021 will include a focused feasibility planning effort for T-Dock Reconfiguration and Replacement. The North Basin docks, specifically O, P & Q docks, are next in line for recapitalization and repairs in the short-term, pending procurement of necessary permits, round out the Port’s 2021 capital plans for the Marina. While a recently completed Marine Terminal Modernization Feasibility Study will help to guide the Commission and staff on future capital investments at the Marine Terminal, 2021 will see a continuation of four in-progress projects. Port staff will proceed with the final phase of Curtis Wharf corrosion repairs and cathodic protection system. Pier 2 cleat design will explore additional cleat additions to increase safety and efficiency during loading events. The Port maintenance building extension will provide a covered area for storage of the Port’s equipment that currently are exposed to outdoor elements and Curtis Wharf entrance paving will improve access for upland services that support marine trade activity. Within Properties, the newly acquired Rockwell property will see design and site development construction efforts. Planning efforts continue on the North and West Basin Redevelopment with significant investments in design and permitting in the North Basin anticipated in 2021, These components include a fully upgraded Cap Sante Marina RV Park which will create a first-rate RV Park with 25 spaces (2 ADA compliant) complete with dedicated utilities, green spaces, privacy hedges, and a restroom facility. Reconfiguration and paving of the parking lot area that serves J-K-L Docks, will also be included in the North Basin upgrades in 2021. 2021 Capital Procurement primarily includes equipment purchases to replace assets at the end of their useful lives. Included in planned purchases in 2021 are new signs at the Airport and Bartholomew Properties, MT Acrulog for sulfur monitoring at the Marine Terminal, Brivia Access Controls at the Marina, additional Wi-Fi capacity at the Marina and flooring overlay at the Seafarers’ Memorial Park Building.
24
2021 CIP Consolidated Summary
CIP Consolidated Summary
Cost Center Prior Year(s) Project Carry
Forward
Current Year Project Budget
Current Year Cash Expenditures
Future Year(s) Project Spend
TOTAL PROJECT FUNDING
PORT GRANTS
Dollars Dollars
Airport $ 90,000 $ 534,000 $ 624,000 $ - $ 183,200 $ 440,800
Marina 6,711,800 575,000 7,286,800 - 6,786,800 500,000
Marine Terminal 500,000 485,000 985,000 - 985,000 -
Properties 735,000 5,020,000 5,755,000 - 4,255,000 1,500,000
Capital Procurement - 96,200 96,200 - 96,200 -
Total for All Projects $ 8,036,800 $ 6,710,200 $ 14,747,000 $ -
$ 12,306,200 $ 2,440,800
25
2021 Airport CIP
2021 CIP Airport CIP
Project Title Project
Type
Prior Year(s) Project Carry
Forward
Current Year Project Budget
Current Year Cash
Expenditures
Future Year(s) Project Spend
TOTAL PROJECT FUNDING
PORT GRANTS
Source Dollars Source Dollars
Airport Stormwater Improvements (Pre-construction)
Facility M&R
$ 90,000 $ - $ 90,000 $ - Tax Fund $ 90,000 --- $ -
North Tie Down Apron Improvements
Facility M&R
- 464,000 464,000 - General
Fund 23,200
FAA / WSDOT
440,800
Outside Operational Fence Pavement Improvement
Facility M&R
- 70,000 70,000 - General
Fund 70,000 --- -
Total Airport Projects $ 90,000 $ 534,000 $ 624,000 $ -
--- $ 183,200 --- $ 440,800
26
2021 Marina CIP
Marina CIP
Project Title Project Type
Prior Year(s) Project Carry
Forward
Current Year
Project Budget
Current Year Cash
Expenditures
Future Year(s) Project Spend
TOTAL PROJECT FUNDING
PORT GRANTS
Source Dollars Source Dollars
A-Dock Demolition and Replacement
Economic Development
$5,611,800 $ - $5,611,800 $ - General
/ Tax Fund
$5,111,800 .09
Skagit County
$500,000
B-Dock Electrical Upgrades
Facility M&R 625,000 - 625,000 - General
Fund 625,000 --- -
North Basin Docks O-P-Q Float Rehab (Construction)
Facility M&R 475,000 325,000 800,000 - General
Fund 800,000 --- -
T-Dock Reconfiguration (Feasibility)
Economic Development
- 150,000 150,000 - Tax
Fund 150,000 --- -
Additional High Speed Fuel Dispenser (Construction)
Economic Development
- 100,000 100,000 - General
Fund 100,000 --- -
Total Marina Projects $6,711,800 $ 575,000 $7,286,800 $ -
--- $6,786,800 --- $ 500,000
27
2021 Marine Terminal CIP
Marine Terminal CIP
Project Title Project Type
Prior Year(s) Project Carry
Forward
Current Year Project Budget
Current Year Cash
Expenditures
Future Year(s) Project Spend
TOTAL PROJECT FUNDING
PORT GRANTS
Source Dollars Source Dollars
Curtis Wharf Corrosion Repairs and Cathodic Protection system (Phase 2 of 2)
Facility M&R $ 500,000 $ - $ 500,000 $ - General Fund
$ 500,000 --- $ -
Pier 2 Cleat Design
Facility M&R - 150,000 150,000 - General
Fund 150,000 --- -
Port Maintenance Building Extension
Facility M&R - 200,000 200,000 - General
Fund 200,000 --- -
Curtis Wharf Entrance Paving
Facility M&R - 135,000 135,000 - General
Fund 135,000 --- -
Total Marine Terminal Projects $ 500,000 $ 485,000 $ 985,000 $ -
--- $ 985,000 --- $ ---
28
2021 Properties CIP
Properties CIP
Project Title Project Type
Prior Year(s) Project Carry
Forward
Current Year
Project Budget
Current Year Cash
Expenditures
Future Year(s) Project Spend
TOTAL PROJECT FUNDING
PORT GRANTS
Source Dollars Source Dollars
Cap Sante Marina RV Park Redevelopment
Economic Development
$ - $3,470,000 $3,470,000 $ - General Fund
$1,970,000
RCO & .09
Skagit County
$1,500,000
Cap Sante Marina RV Park Restroom Facility
Economic Development
- 660,000 660,000 - General
Fund 660,000 --- -
N/W Basin Redevelopment (Planning)
Community Development
400,000 140,000 540,000 - Tax
Fund 540,000 --- -
Rockwell Site Development (Pre-Construction)
Economic Development
335,000 - 335,000 - Tax
Fund 335,000 --- -
N/W Basin Development - Cap Sante Marina Parking Lot (JKL)
Community Development
- 750,000 750,000 - Tax
Fund 750,000 --- -
Total Properties Projects $735,000 $5,020,000 $5,755,000 $ -
--- $4,255,000 --- $1,500,000
29
2021 Capital Purchases
2021 Capital Purchases
Project Title Project Type
Prior Year(s) Project Carry
Forward
Current Year
Project Budget
Current Year Cash
Expenditures
Future Year(s) Project Spend
TOTAL PROJECT FUNDING
PORT GRANTS
Source Dollars Source Dollars
Miscellaneous Capital Purchases within Executive Director Authority
Equipment $ - $ 96,200 $ 96,200 $ - General
Fund $ 96,200 --- $ -
Total Capital Procurement Projects $ - $ 96,200 $ 96,200 $ -
--- $ 96,200 --- $ -
Photos: (Top Left) Quiet Cove Before Project Began, (Bottom Left) Quiet Cove Project Progress in September 2020 (Right) Quiet Cove COVID-Style, Social-Distancing Groundbreaking by Executive Director, Dan Worra
30
Environmental Program
Environmental Stewardship
Environmental Stewardship
The Port of Anacortes is committed to protecting and enhancing the natural environment through implementation of a proactive environmental program
of prevention, remediation and education. Our strategies encompass:
The development and implementation of preventative measures to lessen the possibility of environmental damage or degradation.
The identification and rehabilitation of environmental damages or degradation on Port properties.
The orientation and education of staff, tenants and the general public regarding environmental requirements and issues.
Participation in voluntary environmental stewardship programs and certifications.
After three consecutive years at the silver level, the Port of Anacortes was awarded the Northwest Clean Air Agency (NWCAA) Partners for Clean Air Gold
Award. The Gold Award recognizes business in Island, Skagit and Whatcom counties that demonstrate at least three consecutive years of compliance with
air quality regulations and implemented additional clean air practices. Of more than 490 businesses registered with NWCAA, the Port is one of only 6
businesses in Skagit County to earn the Gold Award in 2020.
Clean Marina
Cap Sante Marina is EnviroStars certified under Clean Marina Washington which is an incentive-based certification program in which marinas assess their
operations and implement improvements to better protect the environment. Clean Marina Washington provides marina best management practices (BMPs)
that are practical and affordable actions that can reduce pollution at the source. By effectively implementing BMPs, marinas and marina tenants may be
able to avoid more expensive and restrictive measures being placed on the boating public by regulatory agencies.
Green Marine
To benchmark and further improve its environmental performance, the Port’s Marine Terminal became a Green Marine participant in 2019 and underwent
self-evaluation with external verification in 2020. Green Marine is an environmental certification program for the North American marine industry dedicated
to advancing environmental excellence. The program stems from a voluntary initiative by the maritime industry to exceed regulatory requirements. Green
Marine is a rigorous, transparent and inclusive program that targets prioritized environmental issues such as greenhouse gases, community impacts, and
water and land pollution.
Voluntary Cleanup Program: Wyman’s Aquatic Habitat Mitigation Site
In 2014, the Port embarked on a cleanup project on the far east end of the Port’s Marine Terminal. This project provides compensatory mitigation for
adjacent development. Through cooperation with DOE’s Voluntary Cleanup Program, the Port excavated 13,550 cubic yards of upland and intertidal material
to provide high quality intertidal habitat along the Guemes Channel. Post construction monitoring continues, with consistent evidence that the site is
meeting its established functional objectives.
31
Environmental Program
Environmental Sites
Environmental Sites
The Port of Anacortes has identified six contaminated sites on various Port properties that require investigation, and potential remediation, in order to
comply with state environmental laws and regulations. Since 2008, the Port, in partnership with the Washington State Department of Ecology (DOE), current
and former tenants and their insurance carriers, former site operators, and the Port’s own historical insurance carriers, has completed in excess of $60
million in clean-up actions.
To date, clean-ups have occurred and are significantly completed at the Cap Sante Marine site, the in-water portion of Dakota Creek Industries Shipyard
(DCI), the former Scott Paper Mill site, and the former Shell Tank Farm site. The former Scott Paper Mill site was completed in 2011 and the Port plans to
complete the DOE required 10-Year Sediment Sampling and Mitigation Monitoring work in 2021. In total, the Port has forecast $188,000 in post-construction
monitoring costs associated with these sites in its 2021 non-operating budget.
The remaining sites, which are in various stages of remedial investigation, feasibility studies, alternative analysis or remediation activities, include the
uplands portion of DCI, the former Pier 2 Log Haul Out site (also known as “Log Pocket”), and the Quiet Cove site. The latter, purchased in 2013, is located
adjacent to Curtis Wharf. To fast-track economic development, the Port in cooperation with its funding partners, including DOE, developed an interim action
for remediation activities which commenced in August 2020. This $3.5 million project is anticipated to be substantially complete by year-end and the Port
estimates roughly $360,000 in closeout and post-construction monitoring expense in 2021.
Also in 2021, the Port anticipates commencement of remediation activities on the uplands portion of DCI, pending acceptance by the Port and DOE of an
approved clean-up action plan. Continued remedial investigation and alternatives analysis on the Log Pocket site round out the 2021 environmental cost
budget.
Model Toxics Control Act (MTCA)
Critical to the ongoing success of the environmental remediation program is the funding of clean-up activities by the Model Toxics Control Act (MTCA),
which is funded through several different mechanisms, including a tax assessed on hazardous materials. In recent years, MTCA fund balances were
significantly overspent (due to a variety of factors including reduced revenues from historically low prices on petroleum products), but through concerted
efforts at the state level, shortfalls were covered with bond packages and the Port has continued to receive necessary awards to advance clean-up projects
each biennium. The Port currently has over $5.5 million in grant awards, guaranteed through June 30, 2021. MTCA funding continues to be a legislative
priority for the Port.
32
Cash Flow Projection: Definitions & Assumptions
Definitions & Assumptions
Port Funding Sources
General Fund: Non-restricted cash fund derived from Port operations and used for the daily operation of the Port.
Construction Fund: Non-restricted cash fund used to collect money for future construction projects. Capital projects outlined in the Capital
Improvement Plan to be funded by the General Fund are financed with cash from this source.
Property Sales Proceeds Fund: Restricted cash fund derived from proceeds from the sale of surplus Port properties. The Port Commission restricts
the use of this fund for property acquisition and/or industrial development.
Environmental Fund: Non-restricted cash fund which is an accumulation of cash receipts related to cost recovery settlements with third parties
regarding environmental remediation costs. These funds are set aside to be used for current and future environmental remediation and cleanup
costs. The Port is currently teaming with the Washington State Department of Ecology on “Focus Fidalgo” which includes long-term post-
construction monitoring and clean-up of six sites in the Port District over the next few years.
Property Tax Fund: Restricted cash fund which is an accumulation of property tax revenues received. Uses of this fund are property acquisition,
industrial development including environmental costs, debt service for general obligation bonds and public access, as established by the Port
Commission.
Estimated Cash from Operations: Estimated cash from operations is the result of Net Operating Income less Depreciation plus capitalized and reclassified
wages. Net Operating Income is the result of operations from the Port’s operating areas: Airport, Marina, Marine Terminal and Properties. In general, these
operating areas are expected to generate sufficient revenues to pay for operating costs including normal maintenance and repair, allocation of general and
administrative costs and debt service on capital projects.
Interest Earned on Investments: Interest income is budgeted conservatively for 2021. Estimated interest earnings in future years were calculated based upon estimated average investment balances and current interest rates of less than 1%.
Operating Reserve: Operating reserve is established by Commission resolution and is currently based upon a three-month average of historical monthly expenditures.
33
Cash Flow Projections 2021-2025
Cash Flow Projections 2021-2025
Totals General Fund Construction
Fund Property
Sales Proceeds Fund Environmental Fund Property Tax Fund
2021 Beginning Cash/Investment Balance $ 15,247,940 $ 4,776,917 $ 7,889,605 $ 37,656 $ 884,662 $ 1,659,100
Estimated Cash from Operations 2,304,625 2,304,625 - - - -
Estimated Cash from Non-Operating:
Tax Levy 1,673,000 - - - - 1,673,000 Interest Income 114,360 35,827 59,172 282 6,635 12,443
Other Non-Operating 30,600 30,600 - - - -
Environmental Projects & Mitigation:
Dakota Creek Shipyard Cleanup Project (1,649,000) - - - (1,649,000) -
Former Pier 2 Log Haul Out Cleanup Project (284,333) (284,333) - - - -
Quiet Cove Cleanup Project (360,200) (360,200) - - - -
Post-Construction Monitoring (Completed Sites) (188,000) - - - (188,000) -
Environmental Recoveries 1,828,127 640,434 - - 1,187,693 -
Debt Service Payments (1,571,923) (1,571,923) - - - -
Interfund Loans and/or Transfers: 2010 Loan - Anthony's Parking Lot - (22,600) - - - 22,600 2019 Loan - Bartholomew Acquisition - - 300,000 - - (300,000)
Surplus Property Sales (PY Receipts) - (4,000) - 4,000 - -
CIP Funding - (1,680,000) 1,680,000 - - -
Operating Reserve (2,892,000) (2,892,000) - - - -
Cash Available for Capital Expenditures $ 14,253,196 $ 973,347 $ 9,928,777 $ 41,938 $ 241,990 $ 3,067,143
2021 Comp. Plan Expenditures:
Airport CIP (See Page 25) (624,000) - (534,000) - - (90,000)
Marina CIP (See Page 26) (7,286,800) - (6,587,830) - - (698,970)
Marine Terminal CIP (See Page 27) (985,000) - (985,000) - - -
Properties CIP (See Page 28) (5,755,000) - (4,130,000) - - (1,625,000)
Capital Procurement (See Page 29) (96,200) - (96,200) - - -
Capital Grants 2,440,800 - 2,440,800 - - -
2021 Comp. Plan Expenditures Net (12,306,200) - (9,892,230) - - (2,413,970)
Ending Cash/Investment Balance 1 $ 1,946,996 $ 973,347 $ 36,547 $ 41,938 $ 241,990 $ 653,173
1 Exclusive of $2,892,000 Operating Reserve.
34
Cash Flow Projections 2021-2025 (continued)
Totals General Fund Construction
Fund Property
Sales Proceeds Fund Environmental Fund Property Tax Fund
2022 Beginning Cash/Investment Balance $ 1,946,996 $ 973,347 $ 36,547 $ 41,938 $ 241,990 $ 653,173
Estimated Cash from Operations 3,372,317 3,372,317 - - - -
Estimated Cash from Non-Operating: Tax Levy 1,709,730 - - - - 1,709,730
Interest Income 94,360 75,374 713 818 4,719 12,737
Other Non-Operating 31,518 31,518
Environmental Projects & Mitigation: Former Pier 2 Log Haul Out Cleanup Project (424,667) (424,667) - - - -
Quiet Cove Cleanup Project (280,000) (280,000) - - - -
Post-Construction Monitoring (Completed Sites) (87,000) - - - (87,000) -
Environmental Recoveries 766,667 704,667 - - 62,000 -
Debt Service Payments (1,575,850) (1,575,850) - - - -
Interfund Loans and/or Transfers:
2019 Loan - Bartholomew Acquisition - - 150,000 - - (150,000)
CIP Funding - (1,740,000) 1,740,000 - - -
Additional Operating Reserve (86,000) (86,000) - - - -
Cash Available for Comp. Plan Exp. $ 5,468,072 $ 1,050,707 $ 1,927,260 $ 42,756 $ 221,709 $ 2,225,640
2022 Comp. Plan Expenditures:
Capital Project Expenditures (3,291,000) - (781,000) - - (2,510,000)
Capital Grants (Potential) 630,250 - 183,750 - - 446,500
2022 Comp. Plan Expenditures Net (2,660,750) - (597,250) - - (2,063,500)
Ending Cash/Investment Balance 2 $ 2,807,322 $ 1,050,707 $ 1,330,010 $ 42,756 $ 221,709 $ 162,140
2 Exclusive of $2,978,000 Operating Reserve.
35
Cash Flow Projections 2021-2025 (continued)
Totals General Fund Construction
Fund Property
Sales Proceeds Fund Environmental Fund Property Tax Fund
2023
Beginning Cash/Investment Balance $ 2,807,322 $ 1,050,707 $ 1,330,010 $ 42,756 $ 221,709 $ 162,140
Estimated Cash from Operations 3,698,487 3,698,487 - - - -
Estimated Cash from Non-Operating: Tax Levy 1,746,827 - - - - 1,746,827
Interest Income 112,833 78,579 25,935 834 4,323 3,162
Other Non-Operating 32,464 32,464 - - - -
Environmental Projects & Mitigation: Former Pier 2 Log Haul Out Cleanup Project (2,575,000) (2,575,000) - - - -
Quiet Cove Cleanup Project (225,000) (225,000) - - - -
Post-Construction Monitoring (Completed Sites) (85,000) - - - (85,000) -
Environmental Recoveries 2,842,500 2,800,000 - - 42,500 -
Debt Service Payments (1,581,050) (1,581,050) - - - -
Interfund Loans and/or Transfers: 2020 – Property Acquisition - - 150,000 - - (150,000)
CIP Funding - (2,160,000) 2,160,000 - - -
Additional Operating Reserve (89,000) (89,000) - - - -
Cash Available for Comp. Plan Exp. $ 6,685,384 $ 1,030,188 $ 3,665,945 $ 43,590 $ 183,532 $ 1,762,129
2023 Comp. Plan Expenditures: Capital Project Expenditures (3,310,000) - (1,825,000) - - (1,485,000)
Capital Grants (Potential) 100,000 - - - - 100,000
2023 Comp. Plan Expenditures Net (3,210,000) - (1,825,000) - - (1,385,000)
Ending Cash/Investment Balance3 $ 3,475,384 $ 1,030,188 $ 1,840,945 $ 43,590 $ 183,532 $ 377,129
3 Exclusive of $3,067,000 Operating Reserve.
36
Cash Flow Projections 2021-2025 (continued)
Totals General Fund Construction
Fund Property
Sales Proceeds Fund Environmental Fund Property Tax Fund
2024
Beginning Cash/Investment Balance $ 3,475,384 $ 1,030,188 $ 1,840,945 $ 43,590 $ 183,532 $ 377,129
Estimated Cash from Operations 3,809,441 3,809,441 - - - -
Estimated Cash from Non-Operating: Tax Levy 1,784,296 - - - - 1,784,296
Interest Income 127,596 79,915 35,898 850 3,579 7,354
Other Non-Operating 33,438 33,438 - - - -
Environmental Projects & Mitigation: Post-Construction Monitoring (Completed Sites) (63,000) - - (63,000) -
Environmental Recoveries 63,000 - - - 63,000 -
Debt Service Payments (1,569,050) (1,569,050) - - - -
Interfund Loans and/or Transfers:
2019 Loan - Bartholomew Acquisition - - 150,000 - - (150,000)
CIP Funding - (2,220,000) 2,220,000 - - -
Additional Operating Reserve (92,000) (92,000) - - - -
Cash Available for Comp. Plan Exp. $ 7,569,105 $ 1,071,932 $ 4,246,843 $ 44,440 $ 187,111 $ 2,018,779
2024 Comp. Plan Expenditures: Capital Project Expenditures (13,415,000) - (3,415,000) - - (10,000,000)
Capital Grants (Potential) 1,355,000 - 555,000 - - 800,000
Capital Loans (Potential) 14,000,000 - - - - 14,000,000
2024 Comp. Plan Expenditures Net 1,940,000 - (2,860,000) - - 4,800,000
Ending Cash/Investment Balance4 $ 9,509,105 $ 1,071,932 $ 1,386,843 $ 44,440 $ 187,111 $ 6,818,779
4 Exclusive of $3,159,000 Operating Reserve.
37
Cash Flow Projections 2021-2025 (continued)
Totals General Fund Construction
Fund Property
Sales Proceeds Fund Environmental Fund Property Tax Fund
2025 Beginning Cash/Investment Balance $ 9,509,105 $ 1,071,932 $ 1,386,843 $ 44,440 $ 187,111 $ 6,818,779
Estimated Cash from Operations 3,923,725 3,923,725 - - - -
Estimated Cash from Non-Operating: Tax Levy 1,822,139 - - - - 1,822,139
Interest Income 247,048 82,523 27,043 867 3,649 132,966
Other Non-Operating 34,441 34,441 - - - -
Environmental Projects & Mitigation: Post-Construction Monitoring (Completed Sites) (50,000) - - (50,000) -
Environmental Recoveries 50,000 - - - 50,000 -
Debt Service Payments (1,375,450) (425,450) - - - (950,000)
Interfund Loans and/or Transfers:
2020 – Property Acquisition - - 150,000 - - (150,000)
CIP Funding - (3,300,000) 3,300,000 - - -
Additional Operating Reserve (95,000) (95,000) - - - -
Cash Available for Comp. Plan Exp. $ 14,066,006 $ 1,292,170 $ 4,863,887 $ 45,307 $ 190,760 $ 7,673,883
2025 Comp. Plan Expenditures Capital Project Expenditures (10,275,000) - (3,275,000) - - (7,000,000)
Capital Grants (Potential) 500,000 - 500,000
2025 Comp. Plan Expenditures Net (9,775,000) - (3,275,000) - - (6,500,000)
Ending Cash/Investment Balance5 $ 4,291,006 $ 1,292,170 $ 1,588,887 $ 45,307 $ 190,760 $ 1,173,883
5 Exclusive of $3,254,000 Operating Reserve.
38
Long-Term Debt
Long-Term Debt
Limited Tax General Obligation Bonds Limited Tax General Obligation (LTGO) bonds are general obligations of the Port payable from general (ad valorem) taxes, subject to certain constitutional
and statutory limitations. The Port plans long-term debt issuance to finance its capital program based on its cash flow needs, sources of revenue, capital
construction periods and market conditions. Borrowings by the Port mature over a term that does not exceed the economic life of the improvements that
they finance.
In September 2020, the Port closed on its $8.185 million sale of LTGO bonds to refinance existing debt and provide funding for future capital projects. $2.89
million refinanced the Port’s 2010 Build America Bonds, saving the Port over $190,000 in interest payments over the next four years. The remaining $5.295
million funded elements of its 2020-2021 capital improvement plan, including the demolition and replacement of A-Dock. The Port’s strong “Aa3” LTGO
bond rating and favorable market conditions at the time of the sale allowed the Port to achieve a historically low true interest cost of 1.91% over the 20-
year life of the bonds.
Outstanding Limited Tax General Obligation Bonds: $10,385,000 LTGO bonds will remain outstanding at December 31, 2020.
Obligation Purpose Final Maturity Original Issue Balance at 12/31/2020
2012 LTGO Bonds Refunding 2024 $ 4,500,000 $ 2,200,000
2020 LTGO Bonds Capital Improvement & Refunding 2040 8,185,000 8,185,000
Total Bond Amount $ 12,685,000 $ 10,385,000
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2018 2019 2020 2021 2022 2023 2024 2025
Principal Outstanding - LTGO Bonds
2010 LTGO Bonds
2012 LTGO Bonds
2020 LTGO Bonds
39
Long-Term Debt
Indebtedness Limitation (RCW 53.36.030) Under Washington State law the Port may incur indebtedness payable from ad valorem taxes in an amount not exceeding one-fourth of one percent of the
value of the taxable property in the district without a vote of the people. With the assent of three-fifths of the voters voting thereon, the district may incur
additional general obligation indebtedness provided the total indebtedness of the Port at any time shall not exceed three-fourths of one percent of the
value of the taxable property in the district. The following estimates the 2021 debt limit. The Port does have debt capacity to issue additional general
obligation bonds.
Value of Taxable Property (2021 Collection Year - Preliminary) $ 7,974,541,563
Limited Tax General Obligation Debt Capacity (Non-Voted)
0.25% of Assessed Value 19,936,354
Less: Outstanding LTGO Debt at 12/31/2020 (10,385,000)
Remaining Capacity (Non-Voted) $ 9,551,354
Revenue Bonds Revenue bonds are obligations of the Port payable solely from the Port’s
net operating revenues. The Port plans long-term debt issuance to finance
its capital program based on its cash flow needs, sources of revenue, capital
construction periods and market conditions. Borrowings by the Port mature
over a term that does not exceed the economic life of the improvements
that they finance.
Outstanding Revenue Bonds: Currently there are no outstanding
revenue bonds.
Image: A-Dock Replacement Project Plan
40
Tax Levy Types & Uses
Tax Levy: Types & Uses
Regular Tax Levy The County Treasurer acts as an agent to collect property taxes levied in the County for all taxing authorities. Taxes are levied annually on January 1 on prior year property values. Assessed values are established by the County Assessor at 100% of fair market value. Taxes are due in two equal installments on April 30 and October 31. Collections are distributed to the Port by the County Treasurer. The Port is permitted by law to levy up to $0.45 per $1,000 of Assessed Valuation for general Port purposes. The levy may go beyond the $0.45 limit to provide for General Obligation debt service. The rate may be reduced for either of the following reasons:
Washington State Law in Revised Code of Washington 84.55.010 limits growth of regular property taxes to 1% per year, after adjustments for new construction.
If the assessed valuation increases by more than 1% due to revaluation, the levy rate will be decreased.
Special Tax Levies Special levies approved by the voters are not subject to the above limitations. The Port can levy property taxes for dredging, canal construction, leveling or filling upon approval of the majority of voters with the Port District, not to exceed $0.45 per $1,000 of Assessed Value of taxable property within the Port District.
Industrial Development District Tax Levies The Port may also levy property taxes for Industrial Development Districts (under a comprehensive scheme of harbor improvements), for two multiyear levy periods only. The levy may not exceed the sum of $2.70 per $1,000 of Assessed Value for taxable property in the Port District for taxes collected in the base year and the maximum allowable amount that could have been collected under RCW 84.55.010 for the first six collection years of the levy period. The levy period may not exceed twenty years from the date the initial levy is made, and the levy rate in any year may not exceed $0.45 per $1,000 of Assessed Value. If a Port District intends to levy this tax over a second multiyear levy period, the Port must publish notice of intent to impose such a levy, and if signatures of at least eight percent (8%) of the voters protest the levy, a special election must be held with a majority approval required. The Port District has not levied this tax.
Tax Levy Uses The Port Commission has directed that the funds collected by the tax levy will be used for property acquisition, industrial development including environmental costs, debt service for general obligation bonds and public access improvements as directed. The Commission further has established a fund with the Skagit County Treasurer to collect these taxes and hold them separate from the General Funds of the Port. The 2021 budget allows the available tax monies to be utilized for new projects authorized by the Port Commission.
41
2021 Tax at a Glance
2021 Tax at a Glance
The preliminary total assessed value for the Port District for 2021, as of budget adoption, is $7,974,541,563. Total proposed general levy rate for 2021 is
$0.21/$1,000 of assessed valuation, which calculates to a regular tax levy of $1,673,000.
As described on the previous page, the Port is permitted to levy the lesser of the statutory maximum dollar rate allowed by State law ($0.45 per $1,000 of
assessed valuation) or the regular certified levy rate as calculated by the County Treasurer. The 2021 proposed general levy is equal to the maximum regular
certified levy available.
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Taxy Levy
Maximum Levy Available Taxes Actually Levied Projected Tax Levy
42
2021 Budget: Supplemental Comparisons - Combined
2021 Budget – Supplemental Comparisons Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
OPERATING REVENUES Airport $ 430,637 $ 569,624 $ 422,024 $ 820,171 $ 383,159
Marina 8,392,800 7,995,892 9,222,928 9,176,568 8,431,854
Marine Terminal 4,737,524 4,262,745 6,623,767 6,630,622 5,865,317
Properties 1,589,288 1,524,427 1,591,821 1,576,577 1,598,914
Total Operating Revenues 15,150,249 14,352,688 17,860,540 18,203,938 16,279,244
OPERATING EXPENSES
Airport 567,430 734,543 600,966 953,708 543,817
Marina 6,796,661 6,224,667 7,698,968 7,004,037 7,038,386
Marine Terminal 3,877,869 3,671,359 5,480,633 5,012,529 4,610,136
Properties 1,426,699 1,394,900 1,326,229 1,320,926 1,199,363
Total Operating Expenses 12,668,659 12,025,469 15,106,796 14,291,200 13,391,702
Net Operating Income Before Depreciation 2,481,590
2,327,219
2,753,744
3,912,738
2,887,542
Depreciation 2,435,800 2,314,418 2,177,200 2,514,362 2,368,600
NET OPERATING INCOME 45,790 12,801 576,544 1,398,376 518,942
Non-Operating Revenues 1,821,860 1,779,987 1,886,439 1,364,144 1,838,395
Non-Operating Expenses (237,963) (413,477) (300,420) (319,552) (374,140)
NET NON-OPERATING 1,583,897 1,366,510 1,586,019 1,044,592 1,464,255
Net Income Before Environmental 1,629,687 1,379,311 2,162,563 2,442,968 1,983,197
Environmental Grants & Recoveries 1,828,126 4,166,136 4,120,589 372,467 434,700
Environmental Expenses (2,481,533) (4,358,380) (5,148,460) (502,622) (584,000)
GASB 49 Costs Previously Accrued - - 3,080,407 4,785,509 302,000
NET ENVIRONMENTAL (653,407) (192,244) 2,052,536 4,655,354 152,700
Capital Grants - All Departments 2,440,800 526,250 352,450 - 546,153
NET INCOME $ 3,417,080 $ 1,713,317 $ 4,567,549 $ 7,098,322 $ 2,682,050
43
2021 Budget: Supplemental Comparisons - Airport
Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
OPERATING REVENUES Building and Ground Leases $ 153,544 $ 151,771 $ 150,966 $ 149,665 $ 146,109
T Hangar Storage 121,943 110,333 110,858 104,741 113,000
Fuel Sales 143,750 131,973 149,800 172,187 115,500
Parking and Tie-Downs 10,200 9,875 9,500 9,857 7,750
Miscellaneous 1,200 1,217 900 708 800
Operating Grants - 164,455 - 383,013 -
Total Operating Revenues 430,637 569,624 422,024 820,171 383,159
OPERATING EXPENSES
Water/Sewer/Garbage 14,700 13,261 13,200 12,794 13,000
Power 12,000 12,453 12,000 12,430 14,000
Storm Sewer Assessment 363 311 9,000 257 9,000
Permit Compliance 4,316 3,936 4,120 3,249 4,815
Repair & Maintenance 30,719 110,994 84,055 486,163 93,250
Fuel for Resale 125,000 109,574 140,000 153,800 105,000
Bank/Card Fees 4,450 3,737 4,605 5,046 1,500
Operating & Other Supplies 13,300 504 350 786 500
Office & Computer Supplies 15,810 13,750 9,525 10,183 13,915
Safety 500 1,200 1,200 546 2,000
Legal Services 2,000 4,521 6,000 1,594 6,825
Other Outside Services 4,000 159,280 17,600 35,518 5,000
Environmental Services 1,110 313 - 1,244 -
Telephone - 334 - 949 900
Travel & Other Business Expenses 3,536 - 1,000 3,536 1,850 Promotional Hosting & Trade/Business/Community Dev -
-
-
87
-
Marketing/Events - - - 389 -
Membership Dues/Publications 250 250 250 332 500
Insurance 35,000 28,946 29,000 24,350 24,000
44
2021 Budget: Supplemental Comparisons - Airport
Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
OPERATING EXPENSES (continued) Business Taxes $ 1,200 $ 1,172 $ 1,300 $ 1,221 $ 1,000
Facilities Payroll 99,168 52,598 94,630 36,483 88,977
Facilities Allocation 58,803 33,252 53,937 57,896 51,264
G&A Allocation 141,205 184,157 119,194 104,855 106,521
Total Operating Expenses 567,430 734,543 600,966 953,708 543,817
Net Income (Loss) Before Depreciation (136,793)
(164,919)
(178,942)
(133,537)
(160,658)
Depreciation 311,751 293,835 289,385 304,187 301,940
NET LOSS $ (448,544) $ (458,754) $ (468,327) $ (437,724) $ (462,598)
45
2021 Budget: Supplemental Comparisons - Marina
Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
OPERATING REVENUES
Moorage $ 5,052,895 $ 5,019,091 $ 4,935,588 $ 4,877,235 $ 4,787,666
Fuel Sales 2,553,842 2,197,515 3,454,642 3,488,363 2,870,040
Boat Launches 124,500 121,640 146,400 135,351 117,000
Electricity Sales 306,884 319,967 311,507 304,841 315,000
Web Locker & Outside Storage 101,891 104,962 95,990 93,229 93,020
Vehicle Parking 25,200 30,445 28,000 30,546 20,000
Overnight Camping/RV Parking 37,000 39,674 45,000 47,997 40,000
Laundry/Showers 38,393 30,341 35,000 43,589 34,400
Passenger Fees 15,000 7,723 30,000 25,927 35,000
Pumpout Fees 40,500 37,260 32,400 30,115 17,100
Environmental Fees 25,200 25,089 25,200 25,556 25,200
Reservation & Wait List Fees 29,740 29,100 28,685 31,010 26,000
Retail Sales 19,545 16,307 22,091 21,742 18,000
Miscellaneous 18,430 13,404 17,800 18,372 24,428
Operating Grants 3,780 3,375 14,625 2,695 9,000
Total Operating Revenues 8,392,800 7,995,892 9,222,928 9,176,568 8,431,854
OPERATING EXPENSES
Wages 747,941 713,090 731,943 642,969 818,513
Payroll Taxes 85,776 89,308 112,043 76,302 146,466
Employee Benefits 229,754 198,403 245,222 191,325 239,992
Hiring Expense 1,900 2,246 800 1,813 -
Total Salary Related Expenses 1,065,371 1,003,046 1,090,008 912,409 1,204,971
Equipment Rent 500 2,075 1,000 3,029 -
Water/Sewer/Garbage 140,730 142,321 150,700 132,244 166,293
Power 254,249 285,137 293,500 258,476 285,346
Storm Sewer Assessment 36,650 32,565 4,500 25,151 4,500
Pumpout 37,500 36,026 30,000 30,009 15,300
Repair & Maintenance 231,300 380,362 355,900 415,579 351,500
46
2021 Budget: Supplemental Comparisons - Marina
Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
OPERATING EXPENSES (continued)
Fuel for Resale $ 2,000,660 $ 1,669,974 $ 2,925,120 $ 2,786,442 $ 2,428,000
Bank/Card Fees 192,000 183,856 214,000 203,564 193,000
Damage Claims 4,500 4,500 4,500 2,643 3,000
Operating & Other Supplies 127,050 118,681 129,800 114,737 94,100
Retail Items for Resale 18,500 15,303 16,000 15,282 15,400
Office & Computer Supplies 48,485 54,669 69,425 42,612 46,625
Laundry & Uniform 7,800 8,970 8,400 4,066 1,000
Safety 9,560 14,242 9,825 6,106 9,900
Legal Services 6,000 10,774 9,000 1,398 4,850
Other Outside Services 13,500 8,540 7,500 67,092 62,150
Environmental Services 25,714 15,334 20,725 17,901 25,700
Telephone 11,020 16,141 14,200 14,171 12,600
Travel & Other Business Expenses 21,397 5,588 12,000 17,630 10,000
Training 13,250 5,718 13,930 12,793 13,725
Trade/Business/Community Dev 10,000 - 25,000 - -
Marketing/Events 64,000 27,944 61,500 72,483 71,500
Membership Dues/Publications 725 265 715 265 715
Insurance 195,000 164,944 158,000 137,407 135,000
Bad Debts - 7,455 - 1,349 -
Lease Payments 17,640 18,659 17,640 17,748 19,000
Business Taxes 39,500 30,173 43,400 43,296 41,475
Facilities Payroll 330,561 231,466 315,430 174,714 296,592
Facilities Allocation 212,949 160,100 195,690 206,702 184,281
G&A Allocation 1,660,550 1,569,839 1,501,560 1,266,739 1,357,263
Total Operating Expense 6,796,661 6,224,667 7,698,968 7,004,037 7,038,386
Net Income before Depreciation 1,596,139 1,771,225 1,523,960 2,172,531 1,393,468
Depreciation 965,692 893,251 882,065 960,729 948,693
NET INCOME $ 630,447 $ 877,974 $ 641,895 $ 1,211,802 $ 444,775
47
2021 Budget: Supplemental Comparisons – Marine Terminal
Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
OPERATING REVENUES
Handling $ 2,265,226 $ 1,852,548 $ 3,467,375 $ 3,414,146 $ 3,000,053
Dockage 422,556 398,756 730,056 754,531 634,524
Wharfage 536,052 469,595 683,040 730,960 646,520
Service & Facilities 569,520 495,655 662,300 783,316 627,480
Environmental Fees 122,928 108,291 218,040 91,649 198,750
Security Revenue 40,500 36,700 91,125 109,125 88,875
Building & Ground Leases 536,386 512,354 530,191 491,855 491,196
Storage & Lay Down 227,416 306,621 166,960 217,990 139,669
Miscellaneous 16,940 32,226 24,680 37,050 38,250
Operating Grants - 50,000 50,000 - -
Total Operating Revenues 4,737,524 4,262,745 6,623,767 6,630,622 5,865,317
OPERATING EXPENSES
Wages 25,399 35,589 91,603 76,511 -
Payroll Taxes 4,087 6,126 23,812 13,020 -
Employee Benefits 3,298 8,307 11,793 11,527 -
Employee Hiring - - - - -
Total Salary Related Expenses 32,784 50,022 127,208 101,058 -
Longshore/Stevedoring 2,266,126 1,861,254 3,463,555 3,410,567 3,012,053
Equipment Rent 4,400 3,386 3,800 2,229 500
Water/Sewer/Garbage 89,750 84,853 75,400 77,758 73,594
Power 44,125 45,153 39,960 37,828 35,166
Storm Sewer Assessment 14,820 12,420 48,525 10,852 39,960
Permit Compliance 10,632 10,934 9,850 5,254 9,550
Repair & Maintenance 62,000 217,844 157,100 121,919 115,800
Operating & Other Supplies - 3,741 - 428 300
Office & Computer Supplies 23,800 19,073 11,500 14,130 12,300
Laundry & Uniform - - - 217 -
48
2021 Budget: Supplemental Comparisons – Marine Terminal
Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
OPERATING EXPENSES (continued)
Safety $ 1,000 $ 1,399 $ 2,500 $ 115 $ 2,500
Legal Services 10,000 23,580 15,000 7,678 1,825
Other Outside Services 14,700 141,798 141,200 58,558 120,800
Environmental Services 25,600 17,258 28,800 19,942 19,385
Telephone - 1,087 1,260 1,196 1,260
Travel & Other Business Expenses 7,300 - 7,300 604 7,000
Training 5,000 1,335 4,000 1,060 5,000 Promotional Hosting & Trade/Business/Community Dev -
79
-
154
1,000
Marketing/Events 1,500 - - 500 16,500
Membership Dues/Publications 13,300 8,870 9,700 8,960 11,800
Insurance 186,000 158,126 149,000 131,499 126,000
Business Taxes 10,900 9,449 16,200 17,083 14,500
Facilities Payroll 66,112 31,670 63,086 30,774 59,318
Facilities Allocation 42,590 29,325 39,138 47,422 36,856
G&A Allocation 945,430 938,703 1,066,551 904,744 887,169
Total Operating Expenses 3,877,869 3,671,359 5,480,633 5,012,529 4,610,136
Net Income before Depreciation 859,655 591,386 1,143,134 1,618,093 1,255,181
Depreciation 835,980 822,779 842,963 1,019,407 927,785
NET INCOME (LOSS) $ 23,675 $ (231,393) $ 300,171 $ 598,686 $ 327,396
49
2021 Budget: Supplemental Comparisons – Properties
Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
OPERATING REVENUES Building & Ground Leases $ 1,487,384 $ 1,491,585 $ 1,430,452 $ 1,399,350 $ 1,441,480
Venue Rentals 45,270 8,695 89,375 81,895 89,700
Event Sponsorships 5,500 - 39,000 37,960 33,000
Utilities Sales 8,704 9,825 8,994 10,615 10,734
Miscellaneous 30,430 14,322 12,000 34,757 12,000
Operating Grants 12,000 - 12,000 12,000 12,000
Total Operating Revenues 1,589,288 1,524,427 1,591,821 1,576,577 1,598,914
OPERATING EXPENSES
Wages 378,446 376,065 365,935 348,658 338,753
Payroll Taxes 31,542 30,417 31,538 27,420 29,350
Employee Benefits 122,669 112,789 138,169 122,255 134,323
Employee Hiring - - - 47 -
Total Salary Related Expenses 532,657 519,271 535,642 498,380 502,426
Equipment Rent 5,000 10,004 7,500 3,611 -
Water/Sewer/Garbage 23,100 52,475 16,900 19,678 13,900
Power 23,727 30,695 19,744 19,794 20,974
Storm Sewer Assessment 9,450 7,263 - 6,410 -
Repair & Maintenance 104,620 81,775 33,585 78,754 94,255
Bank/Card Fees 905 138 1,700 1,153 2,000
Operating & Other Supplies 8,500 2,003 7,400 14,133 -
Tenant Relocation/Demolition - 300 - 5,605 -
Office & Computer Supplies 4,300 3,109 5,500 7,664 5,800
Laundry & Uniform - - - 123 -
Safety - 400 400 80 2,200
Legal Services 20,000 22,098 23,000 17,595 16,000
Other Outside Services 20,886 127,294 110,266 83,889 40,037
Telephone 4,000 2,200 3,800 2,000 2,560
50
2021 Budget: Supplemental Comparisons – Properties
Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
OPERATING EXPENSES (continued)
Travel & Other Business Expenses 3,000 1,236 7,500 8,095 6,000
Training 3,000 452 3,000 3,462 2,500 Promotional Hosting & Trade/Business/Community Dev -
-
3,000
53
1,000
Marketing/Events 77,650 2,384 74,000 71,952 66,000
Membership Dues/Publications 500 488 500 872 500
Insurance 72,000 59,241 58,000 50,731 45,000
Bad Debts - - - 1,305 -
Business Taxes 1,200 337 2,200 2,114 2,200
Facilities Payroll 99,168 61,164 94,630 85,229 88,977
Facilities Allocation 63,886 47,723 58,707 98,272 55,285
G&A Allocation 349,150 362,850 259,255 239,972 231,749
Total Operating Expenses 1,426,699 1,394,900 1,326,229 1,320,926 1,199,363
Net Income before Depreciation 162,589 129,527 265,592 255,651 399,551
Depreciation 322,377 304,553 162,787 230,039 190,182
NET INCOME (LOSS) $ (159,788) $ (175,026) $ 102,805 $ 25,612 $ 209,369
51
2021 Budget: Supplemental Comparisons – General & Administrative
Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
OPERATING EXPENSES Wages $ 1,700,305 $ 1,667,542 $ 1,591,530 $ 1,501,789 $ 1,371,217
Capitalized Labor (176,964) (158,733) (150,546) (74,840) (144,036)
Payroll Taxes 156,461 146,593 167,860 131,119 133,199
Employee Benefits 646,592 529,537 636,355 386,991 582,698
Hiring Expense 2,000 187 2,400 - 5,000
Total Payroll Related Expenses 2,328,394 2,185,126 2,247,599 1,945,059 1,948,078
Water/Sewer/Garbage 1,400 1,919 1,200 1,450 8,400
Power 14,000 12,430 16,000 16,258 16,181
Permit Compliance 8,024 9,263 12,900 6,920 18,000
Repair & Maintenance 6,500 25,263 21,800 4,693 7,665
Bank/Card Fees 600 856 3,000 1,031 -
Operating & Other Supplies 1,000 10,211 3,500 3,226 7,000
Office & Computer Supplies 132,880 136,921 122,580 98,158 119,370
Laundry & Uniform 500 1,461 1,800 1,602 1,416
Safety 52,575 40,331 3,405 1,423 3,700
Legal Services 35,000 89,662 39,500 14,040 13,700
Other Outside Services 142,213 128,217 125,500 71,613 145,570
Environmental Services 5,062 4,656 4,700 4,326 4,100
Telephone 21,830 22,296 17,750 17,277 17,250
Travel & Other Business Expenses 60,900 34,062 85,540 93,131 63,500
Training 27,190 22,644 31,610 24,995 25,840 Promotional Hosting & Trade/Business/Community Dev 60,000
30,051
35,000
720
1,000
Marketing/Events 19,000 26,858 19,000 13,923 32,000
Membership Dues/Publications 53,761 49,607 38,725 47,918 42,148
Insurance 31,000 25,511 28,000 21,738 25,000
Lease Payments 13,280 11,201 12,000 12,506 11,250
Business Taxes 500 648 449 1,000
52
2021 Budget: Supplemental Comparisons – General & Administrative
Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
OPERATING EXPENSES (continued) Facilities Payroll $ 33,056 $ 74,512 $ 31,543 $ 64,072 $ 29,659
Facilities Allocation 47,670 111,769 43,908 49,782 40,876
Total G&A before Depreciation 3,096,335 3,055,475 2,946,560 2,516,310 2,582,703
Depreciation 59,800 74,033 76,500 135,731 121,700
TOTAL G&A EXPENSES $ 3,156,135 $ 3,129,508 $ 3,023,060 $ 2,652,041 $ 2,704,403
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53
2021 Budget: Supplemental Comparisons – Facilities
Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
OPERATING EXPENSES Wages $ 584,959 $ 465,817 $ 533,444 $ 474,990 $ 498,361
Payroll Taxes 76,162 65,396 97,416 66,683 94,821
Employee Benefits 200,681 150,632 177,628 153,947 170,851
Hiring Expense 750 150 615 701 -
Total Payroll Related Expenses 862,552 681,995 809,103 696,321 764,033
Equipment Rent 500 325 - 197 14,200
Water/Sewer/Garbage 8,300 9,530 10,000 8,322 4,200
Power 4,325 5,832 4,100 4,074 9,950
Permit Compliance - - - 272 -
Repair & Maintenance 33,159 37,413 34,800 37,329 24,000
Operating & Other Supplies 52,100 31,355 39,500 40,720 14,500
Office & Computer Supplies 24,600 15,226 16,650 17,988 7,500
Laundry & Uniform 1,800 3,612 4,400 1,896 500
Safety 4,403 4,130 6,850 2,314 4,300
Legal Services 5,000 - - 1,039 -
Other Outside Services 1,200 1,835 2,500 1,979 16,850
Telephone 12,050 9,537 9,450 8,862 24,150
Travel & Other Business Expenses 8,825 1,450 10,000 3,556 7,500
Training 14,150 13,992 25,346 11,569 17,402
Lease Payments - - - 351 15,000
Insurance 21,000 17,321 18,000 14,558 8,000
Total Facilities before Depreciation 1,053,964
833,553
990,699
851,347
932,085
Depreciation 50,800 51,049 47,700 46,067 40,200
TOTAL FACILITIES EXPENSES $ 1,104,764 $ 884,602 $ 1,038,399 $ 897,414 $ 972,285
54
2021 Budget: Supplemental Comparisons – Non-Operating
Budget Projected Budget Actual Budget
2021 2020 2020 2019 2019
NON-OPERATING REVENUES Taxes Levied $ 1,673,000 $ 1,616,866 $ 1,588,000 $ 1,552,517 $ 1,550,000
Other Taxes 7,500 6,334 9,000 17,222 7,500
Miscellaneous Revenues - - - 145 -
Interest Income 114,360 73,845 218,000 227,568 197,720
Build America Bonds Subsidy - 65,939 63,439 69,930 73,175
Sale of Scrap and Waste 4,500 3,350 - 4,203 -
Gain (Loss) on Disposal of Assets - - - (531,062) -
Late Charges/Rebates 22,500 13,653 8,000 23,621 10,000
Total Non-Operating Revenues 1,821,860 1,779,987 1,886,439 1,364,144 1,838,395
NON-OPERATING EXPENSES
GO Bond Interest Expense 234,063 277,314 300,420 315,206 349,890
Bond Issue Costs - 124,999 - - -
Election Costs - 7,732 - - 24,000
Business Taxes 300 230 - 399 250
Fees Paid to the County 3,600 3,202 - 3,947 -
Total Non-Operating Expenses 237,963 413,477 300,420 319,552 374,140
NET NON-OPERATING INCOME 1,583,897 1,366,510 1,586,019 1,044,592 1,464,255
ENVIRONMENTAL ITEMS
Environmental Grants Received 1,089,517 2,117,167 2,148,536 212,665 240,000
Environmental Costs Recovered 738,609 2,048,969 1,972,053 159,802 194,700
Environmental Expenses (2,481,533) (4,358,380) (5,148,460) (502,622) (584,000)
GASB 49 Costs Previously Accrued - - 3,080,407 4,785,509 302,000
NET ENVIRONMENTAL ACTIVITY $ (653,407) $ (192,244) $ 2,052,536 $ 4,655,354 $ 152,700
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