DRAFT … · 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

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

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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


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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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.


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


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.


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


OPERATING EXPENSES

Wages & Benefits 32,784

Longshore/Stevedoring 2,266,126


G&A Allocation 945,430 Total Operating Expenses 3,877,869

Net Operating Income Before Depreciation 859,655


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.


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


OPERATING EXPENSES

Wages & Benefits 532,657


G&A Allocation 349,150 Total Operating Expenses 1,426,699

Net Operating Income Before Depreciation 162,589


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 Cash

Expenditures



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


Forward

Current Year

Project Budget

Current Year Cash

Expenditures



PORT GRANTS


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)


- 150,000 150,000 - Tax

Fund 150,000 --- -

Additional High Speed Fuel Dispenser (Construction)


- 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



Forward


Current Year Cash

Expenditures



PORT GRANTS


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


Fund 200,000 --- -

Curtis Wharf Entrance Paving


Fund 135,000 --- -

Total Marine Terminal Projects $ 500,000 $ 485,000 $ 985,000 $ -

--- $ 985,000 --- $ ---

28

2021 Properties CIP

Properties CIP



Forward

Current Year

Project Budget

Current Year Cash

Expenditures



PORT GRANTS


Cap Sante Marina RV Park Redevelopment


$ - $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


- 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)


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



Forward

Current Year

Project Budget

Current Year Cash

Expenditures



PORT GRANTS


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)


Fund Property


2022 Beginning Cash/Investment Balance $ 1,946,996 $ 973,347 $ 36,547 $ 41,938 $ 241,990 $ 653,173


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) - - - -



Environmental Recoveries 766,667 704,667 - - 62,000 -


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


35



Fund Property


2023

Beginning Cash/Investment Balance $ 2,807,322 $ 1,050,707 $ 1,330,010 $ 42,756 $ 221,709 $ 162,140



Interest Income 112,833 78,579 25,935 834 4,323 3,162


Environmental Projects & Mitigation: Former Pier 2 Log Haul Out Cleanup Project (2,575,000) (2,575,000) - - - -



Environmental Recoveries 2,842,500 2,800,000 - - 42,500 -


Interfund Loans and/or Transfers: 2020 – Property Acquisition - - 150,000 - - (150,000)

CIP Funding - (2,160,000) 2,160,000 - - -



2023 Comp. Plan Expenditures: Capital Project Expenditures (3,310,000) - (1,825,000) - - (1,485,000)

Capital Grants (Potential) 100,000 - - - - 100,000


Ending Cash/Investment Balance3 $ 3,475,384 $ 1,030,188 $ 1,840,945 $ 43,590 $ 183,532 $ 377,129


36



Fund Property


2024

Beginning Cash/Investment Balance $ 3,475,384 $ 1,030,188 $ 1,840,945 $ 43,590 $ 183,532 $ 377,129



Interest Income 127,596 79,915 35,898 850 3,579 7,354


Environmental Projects & Mitigation: Post-Construction Monitoring (Completed Sites) (63,000) - - (63,000) -

Environmental Recoveries 63,000 - - - 63,000 -



2019 Loan - Bartholomew Acquisition - - 150,000 - - (150,000)

CIP Funding - (2,220,000) 2,220,000 - - -



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


37



Fund Property


2025 Beginning Cash/Investment Balance $ 9,509,105 $ 1,071,932 $ 1,386,843 $ 44,440 $ 187,111 $ 6,818,779



Interest Income 247,048 82,523 27,043 867 3,649 132,966


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)


2020 – Property Acquisition - - 150,000 - - (150,000)

CIP Funding - (3,300,000) 3,300,000 - - -



2025 Comp. Plan Expenditures Capital Project Expenditures (10,275,000) - (3,275,000) - - (7,000,000)

Capital Grants (Potential) 500,000 - 500,000


Ending Cash/Investment Balance5 $ 4,291,006 $ 1,292,170 $ 1,588,887 $ 45,307 $ 190,760 $ 1,173,883


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


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


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


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 -


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


46

2021 Budget: Supplemental Comparisons - Marina


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


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


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


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



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


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 - -


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


Power 44,125 45,153 39,960 37,828 35,166

Storm Sewer Assessment 14,820 12,420 48,525 10,852 39,960



Operating & Other Supplies - 3,741 - 428 300


Laundry & Uniform - - - 217 -

48

2021 Budget: Supplemental Comparisons – Marine Terminal


2021 2020 2020 2019 2019


Safety $ 1,000 $ 1,399 $ 2,500 $ 115 $ 2,500

Legal Services 10,000 23,580 15,000 7,678 1,825



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



G&A Allocation 945,430 938,703 1,066,551 904,744 887,169


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


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


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 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 -


Power 23,727 30,695 19,744 19,794 20,974

Storm Sewer Assessment 9,450 7,263 - 6,410 -


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 -


Laundry & Uniform - - - 123 -

Safety - 400 400 80 2,200

Legal Services 20,000 22,098 23,000 17,595 16,000


Telephone 4,000 2,200 3,800 2,000 2,560

50

2021 Budget: Supplemental Comparisons – Properties


2021 2020 2020 2019 2019



Training 3,000 452 3,000 3,462 2,500 Promotional Hosting & Trade/Business/Community Dev -

-

3,000

53

1,000



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



G&A Allocation 349,150 362,850 259,255 239,972 231,749


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


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


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


Power 14,000 12,430 16,000 16,258 16,181



Bank/Card Fees 600 856 3,000 1,031 -



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



Telephone 21,830 22,296 17,750 17,277 17,250


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


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


2021 2020 2020 2019 2019

OPERATING EXPENSES (continued) Facilities Payroll $ 33,056 $ 74,512 $ 31,543 $ 64,072 $ 29,659


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

Get to know your Port of Anacortes…

Employee of the Year 2020

Jenkins Dossen

Marina Operations, New Full-Time Hire

Justin Parkins

Executive Assistant, New Full-Time Hire

Jennifer Tottenham

53

2021 Budget: Supplemental Comparisons – Facilities


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


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


Power 4,325 5,832 4,100 4,074 9,950

Permit Compliance - - - 272 -




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 -


Telephone 12,050 9,537 9,450 8,862 24,150


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


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

Documents

DRAFT … · 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