Port of Long Beach. Legislation Text

Transcription

1 Port of Long Beach 4801 Airport Plaza Drive Long Beach, CA Legislation Text File #: HD , Version: 1 DATE: 8/27/2018 TO: Board of Harbor Commissioners FROM: Don Kwok, Acting Director of Finance SUBJECT: Financial Review Summary for the period of October 2017 to June 2018 (through the Third Quarter of FY 2018) Executive Summary..Title In June 2017, the Board of Harbor Commissioners adopted the annual budget for FY On a quarterly basis, the Finance Division reviews and compares actual revenues and expenditures of the Port to monitor the performance against the budget, and against the same period of the prior fiscal year. Key Points..Body Operating revenues totaled $305.2 million, which was $25.4 million or 9.1% higher than the prorated budget; and $30.8 million or 11.2% higher than the same period of the prior year Non-operating revenues totaled $55.5 million, which was $33.8 million or 37.8% lower than the prorated budget Operating expenses totaled $98.5 million, which was $18.5 million or 15.8% lower than the prorated budget Capital Program expenditures totaled $166.1 million, which was 51.5% lower then the prorated budget Net income totaled $117.2 million, which was a $20.6 million or 21.3% increase over the same period last year, primarily attributed to the higher year-over-year operating revenues Recommendation It is recommended that the Board of Harbor Commissioners receive and file the financial summary report through the third quarter (October 2017-June 2018) of FY Financial Impact There is no financial impact associated with this item. Background Each fiscal year, the budget amounts have historically been developed at the annual level. Most categories in the schedule comparing budgeted vs. actual results use a straight-line allocation of the year over twelve months, with the prorated budget representing nine months or 75% of the fiscal year. The prorated budget for Operating Revenues has been updated to take into account various lease terms, including when breakpoints are met. The prorated budget for the Sale of Assets has been updated to better approximate the timing of when transactions are recognized. Port of Long Beach Page 1 of 5 Printed on 8/28/2018 powered by Legistar

2 File #: HD , Version: 1 This financial summary is unaudited. The Statement of Revenues, Expenses, and Changes in Fund Net Position is reported on a full accrual basis, net of certain allowances for bad debt and incentives. The Budget vs Actual schedules are presented in a combination of accrual and cash basis accounting methods. Grant revenues are recognized when eligible and reimbursable project expenditures are incurred. In order to meet a Board ordinance, the Port needs to maintain 600 days of unrestricted operating cash on-hand, or a minimum cash balance of $234.5 million on-hand at all times in FY As of June 30, 2018, the unrestricted cash balance was $430.4 million, an equivalent to 1,101 days of operating expenses. Revenues (in thousands) FY 2018 Budget vs. Actual The following table provides an overview of operating and non-operating revenue through the third quarter of FY 2018: FY 2018 Pro-rated FY 2018 Thousands of dollars ($000s) Adopted Budget Actuals Budget Oct - June Oct - JuneVariance $Variance OPERATING REVENUES TERMINALS 364, , ,742 23, % RENTALS 12,419 9,892 11,135 1, % MISCELLANEOUS 2,557 1,917 2, % TOTAL OPERATING REVENUES 379, , ,155 25, % NON-OPERATING REVENUES INTEREST INCOME 6,036 4,527 6,980 2, % ICTF 2,500 2,500 2,000 (500) -20.0% CLEAN TRUCK PROGRAM FEES 2,020 1,515 1,331 (184) -12.1% GRANT REVENUE 106,362 79,772 44,090 (35,682) -44.7% TOTAL NON OPERATING REVENUES 116,918 88,314 54,401 (33,913) -38.4% SALE OF ASSETS 26,000 1,000 1, % TOTAL REVENUE 522, , ,654 (8,469) -2.3% Budgeted operating revenues for the nine months period were $279.8 million, while actual revenues were $305.2 million. This positive $25.4 million variance in operating revenues was primarily attributed to 1) container terminal revenue exceeding budget by $20.0 million or 9.3%, given the conservative budget assumptions used for a particular terminal; combined with 2) revenues at dry bulk facilities being $4.3 million or 18.4% higher than budget due to better than expected volume growth. Actual revenue for all other facility types were comparatively flat to their prorated budgets. Non-operating revenues (including sale of assets) through the third quarter totaled $55.5 million or $33.8 million lower than the budget primarily due to a lower amount of grant revenues being recognized, which was Port of Long Beach Page 2 of 5 Printed on 8/28/2018 powered by Legistar

3 File #: HD , Version: 1 a result of construction delays on the grant-funded Gerald Desmond Bridge Replacement Project. FY 2018 vs. FY 2017 Compared to the same nine-month period of FY 2017, Operating Revenues of $305.2 million was $30.8 million or 11.2% higher than the $274.3 million in FY This positive year-over-year variance is almost entirely driven by the ongoing strong performance of container terminal revenue. In addition, revenue at dry bulk facilities was $2.0 million higher than the previous year, which helped to offset negative variances in Petroleum and Breakbulk terminal revenue. Operating Expenses (in thousands) FY 2018 Budget vs. Actual Operating expenses through the third quarter of FY 2018 totaled $98.5 million, representing a favorable budget variance of $18.5 million. Stated differently, the year-to-date expenditures were at 63.1% of the $156.0 million annual operating expenses budget. The following table provides an overview of Budgeted vs. Actual operating expenses with explanations provided immediately thereafter: Thousands of dollars ($000s) FY 2018 Pro-rated FY 2018 Adopted Budget Actuals Budget Oct - JuneOct - Ju Variance $Varianc EXPENDITURES FOR FISCAL YEAR PERSONNEL SERVICES 67,322 50,492 46,876 (3,616) -7.2% NON-PERSONNEL SERVICES Port Operations 48,181 36,136 22,395 (13,740) Interdepartmental Charges 38,906 29,180 28,798 (382) -1.3% Furniture, Fixtures, and Equipment 1,553 1, (768) NON-PERSONNEL SERVICES 88,640 66,480 51,590 (14,890) TOTAL OPERATING EXPENSES 155, ,972 98,466 (18,506) Personnel Services totaled $46.9 million through June 2018, which was $3.6 million or 7.2% lower than the prorated budget. The favorable variance was mainly attributable to $7.2 million in vacancies, with the average number of open positions through the first nine months totaling approximately 72. Partially offsetting this favorable variance was the under allocated credits of $3.6 million from internal labor costs charged to capital, as the capital project expenditures are running behind the prorated budget. Non-personnel Port Operations expenses totaled $22.4 million, which was $13.7 million or 38.0% lower than prorated budget primarily due to a combination of project delays, canceled projects, and the timing of planned expenditures for consulting services within the Environmental Planning, Program Management, Executive Offices, Tenant Services and Finance divisions. Interdepartmental Charges totaled $28.8 million, running in-line with the prorated budget. These were transfers made to various City Departments for services provided, such as Fire and Police. Port of Long Beach Page 3 of 5 Printed on 8/28/2018 powered by Legistar

4 File #: HD , Version: 1 Furniture, Fixtures, and Equipment expenditures were $0.8 million below the prorated budget. This variance was due in large part to spending for auto fleet purchases, budgeted at $0.7 million with $0.1 million incurred through June. FY 2018 vs. FY 2017 Operating expenses, excluding depreciation, through the third quarter of fiscal year 2018 were $3.4 million, or 3.8% higher than the same period in the prior fiscal year. Some of the more significant drivers of this variance include the following: An increase of approximately $2.2 million for services provided by the City of Long Beach Fire and Police Departments because of higher FY 2018 MOU amounts. The reclassification of $1.2 million from construction-in-progress to expense for the Pier A West Storm Water and Re-Vegetation project. No assets were constructed and the project is not going forward with construction. An increase of $1.7 million in costs related to the new Citywide ERP project with no such expenses being incurred last year. Costs are accrued monthly with the FY 2018 total at year-end projected to be $2.2 million. An increase of approximately $0.6 million due to more underground wet utility work being performed versus last fiscal year. Debt Service For annual budgeting and quarterly reporting purposes, debt service consists of the sum of monthly transfers from the Operating Fund to the Debt Service Fund, to provide for payment of: 1. Bond Interest 2. Bond Principal 3. Administrative costs for Banking and Financial institutions Debt service amounts are accrued as monthly expenses, with payments due in November and May of each fiscal year. Debt service expense for through the third quarter totaled $71.7 million or $0.3 million higher than the prorated budget. This variance will be zero as an accounting true up occurs at year-end when the remaining scheduled debt service payments are made. Capital Program Summary Capital program expenditures through June 30, 2018 totaled $166.1 million, which was $176.3 million or 51.5% lower than the prorated capital budget. This amount represents 36.4% of the $456.5 million annual capital program budget. Significant projects that comprise approximately 80% of total capital budget underrun include the following: Gerald Desmond Bridge Replacement Project: The FY 2018 adopted budget for this project totals $215.0 million, with the prorated amount totaling $161.2 million. Actual expenditures through the third quarter were $83.7 million, or $77.5 million under the prorated budget. This underrun is predominately due to construction delays on the project. Middle Harbor Redevelopment Project: The FY 2018 adopted budget for this project totals $91.8 million, with the prorated amount totaling $68.9 million. Actual expenditures through the third quarter were $41.6 million, or $27.3 million under the prorated budget. This underrun was expected and is largely due to 1) the current Port of Long Beach Page 4 of 5 Printed on 8/28/2018 powered by Legistar

5 File #: HD , Version: 1 forecast at completion being less than the budget; 2) intentionally delaying the award of a construction contract in order to determine that the bids received for a separate contract were in-line with expectations; 3) a delay in finalizing insurance documentation; and 4) delayed invoicing. Sewer, Street, Water and Stormwater Programs: The FY 2018 adopted budget for this collective program totals $48.2 million, with the prorated amount totaling $36.1 million. Actual expenditures through the third quarter were $9.2 million, or $26.9 million under the prorated budget. This underrun was largely driven by projects being delayed due to construction conflicts with larger projects such as the Gerald Desmond Bridge Replacement project and the related traffic safety concerns for Port operations. In addition, some of the infrastructure projects included in this portfolio are being reprogrammed and combined with other projects in a given area to reduce overall costs and construction impacts. Back Channel Deepening (NRG Intake Forebay Demolition): The FY 2018 adopted budget for this project totals $14.4 million, with the prorated amount totaling $10.8 million. Actual expenditures through the third quarter were approximately $445,000, or $10.3 million under the prorated budget. Bidding for this project, which involves demolition work, has been delayed due to a delay in finalizing a necessary Demolition Access Agreement. Capital Budget Transfers and Authorizations for Spending The budget to actual comparisons in this analysis are based on the 2018 Capital Program Budget adopted by the Board. During the budget year, the Board approves authorizations for spending for capital projects/programs; sets a baseline project budget for the projects/programs that typically have completed 30% of design; and approves transfers from projects that incur surpluses to those requiring additional funds. These transfers and authorizations for spending approved by the Board do not change the total dollar amount of the Capital Program Budget. Attachments: Attachment A - Summary - Budget versus Actual Attachment B - Revenues - Budget versus Actual Attachment C - Capital - Budget versus Actual Attachment D - Statement of Revenues, Expenses and Changes in Fund Net Position Attachment E - Statement of Net Position Port of Long Beach Page 5 of 5 Printed on 8/28/2018 powered by Legistar

6 Harbor Department Summary - Budget versus Actual Fiscal Year For the period of October June 2018 Attachment A REVENUES AND EXPENDITURES FY 2018 Pro-rated FY 2018 Adopted Budget Actuals Budget Oct - June Oct - June Variance $ Variance % UNRESTRICTED SOURCES OF FUNDS AVAILABLE ($000) REVENUES FOR FISCAL YEAR OPERATING REVENUES 379, , ,155 25, % SALE OF ASSETS 26,000 1,000 1, % NON-OPERATING REVENUES 116,918 88,314 54,401 (33,913) -38.4% CASH AVAILABLE THROUGH NEW DEBT CASH AVAILABLE THROUGH EXISTING DEBT 225, ,750 - (168,750) N/A ,917 14,917 N/A FROM FUND BALANCE N/A TOTAL SOURCES OF FUNDS AVAILABLE 747, , ,571 (162,302) -30.2% UNRESTRICTED USES OF FUNDS ($000) EXPENDITURES FOR FISCAL YEAR PERSONNEL SERVICES 67,322 50,492 46,876 (3,616) -7.2% NON-PERSONNEL SERVICES Port Operations 48,181 36,136 22,395 (13,740) -38.0% Interdepartmental Charges 38,906 29,180 28,798 (382) -1.3% Furniture, Fixtures, and Equipment 1,553 1, (768) -65.9% NON-PERSONNEL SERVICES 88,640 66,480 51,590 (14,890) -22.4% TOTAL OPERATING EXPENSES 155, ,972 98,466 (18,506) -15.8% TIDELANDS TRANSFERS 18,662 13,996 13, % DEBT SERVICE 95,211 71,408 71, % PORT HEADQUARTERS/CIVIC CENTER 5,482 4,112 2,389 (1,723) -41.9% CAPITAL EXPENDITURES 451, , ,688 (174,606) -51.6% PENSION LIABILITY & RETIREE MEDICAL LIABILITY 5, N/A TO FUND BALANCE 16, ,312 25,312 N/A TOTAL USES OF FUNDS 747, , ,571 (169,210) -31.1%

7 Harbor Department Revenues - Budget versus Actual Fiscal Year For the period of October June 2018 Attachment B FY 2018 Pro-rated FY 2018 Thousands of dollars ($000s) Adopted Budget Actuals Budget Oct - June Oct - June Variance $ Variance % OPERATING REVENUES FACILITIES CONTAINER TERMINALS 295, , ,864 20, % PETROLEUM AND LIQUID BULK TERMINALS 17,991 14,696 13,989 (708) -4.8% DRY BULK TERMINALS 31,279 23,597 27,936 4, % BREAKBULK TERMINALS 20,093 14,850 14, % TOTAL FACILITIES 364, , ,742 23, % RENTALS 12,419 9,892 11,135 1, % MISCELLANEOUS 2,557 1,917 2, % TOTAL OPERATING REVENUES 379, , ,155 25, % CLEAN TRUCK PROGRAM FEES 2,020 1,515 1,331 (184) -12.1% NON OPERATING REVENUES INVESTMENT INCOME INTEREST INCOME 6,036 4,527 6,980 2, % ICTF 2,500 2,500 2,000 (500) -20.0% TOTAL INVESTMENT INCOME 8,536 7,027 8,980 1, % FUNDS FROM OTHER GOVERNMENTAL AGENCIES OTHER GRANTS 14,362 10,772 2,994 (7,778) -72.2% GDB GRANT REIMBURSEMENT 92,000 69,000 41,096 (27,904) -40.4% TOTAL REV. FROM OTHER GOVERNMENTAL AGENCIES 106,362 79,772 44,090 (35,682) -44.7% TOTAL NON OPERATING REVENUES 116,918 88,314 54,401 (33,913) -38.4% SALE OF ASSETS 26,000 1,000 1, % TOTAL REVENUE 522, , ,654 (8,469) -2.3%

8 Attachment C Harbor Department Capital Expenditures Fiscal Year For the period of October June 2018 (Stated in Dollars) FY 2018 Pro-rated FY 2018 DESCRIPTION Adopted Budget Actual Budget Oct - June (Oct - June) Variance Variance % TERMINAL PROJECTS Middle Harbor (Piers D/E/F) 91,833,600 68,875,200 41,581,173 (27,294,027) -39.6% Pier G Wharf Improvement Project 2,926,500 2,194, ,295 (1,446,580) -65.9% Berth G215 Bollard Replacement 301, ,900 - (225,900) % Pier J Berths J245-J247 Landside Rail Crane Girder Upgrades 15,215,700 11,411,775 5,078,551 (6,333,224) -55.5% Tesoro Facility Improvement - - 2,736 2,736 N/A Tesoro Facility Improvement Phase 2 2,983,800 2,237,850 - (2,237,850) % TOTAL TERMINALS PROJECTS 113,260,800 84,945,600 47,410,755 (37,534,845) -44.2% RAILWAYS Pier B On-Dock Rail Support Facility Program. 8,936,300 6,702,225 1,376,052 (5,326,173) -79.5% Portwide Rail Portfolio (excluding Pier B) 4,097,900 3,073,425 1,983,943 (1,089,482) -35.4% TOTAL RAILWAYS 13,034,200 9,775,650 3,359,995 (6,415,655) -65.6% BRIDGES Gerald Desmond Bridge Replacement 214,987, ,240,250 83,737,617 (77,502,633) -48.1% TOTAL BRIDGES 214,987, ,240,250 83,737,617 (77,502,633) -48.1% DREDGING Back Channel Deepening 14,376,300 10,782, ,967 (10,338,258) -95.9% West Basin Approach Borrow 1,350,500 1,012,875 3,744,390 2,731, % TOTAL DREDGING 15,726,800 11,795,100 4,188,358 (7,606,742) -64.5% SEWER, STREET, WATER, AND STORM WATER Street Improvement 19,360,600 14,520,450 6,191,779 (8,328,671) -57.4% Storm Water Improvement 14,388,200 10,791, ,836 (10,116,314) -93.7% Sewer Improvement 9,564,300 7,173,225 1,970,176 (5,203,049) -72.5% Water Improvement 4,850,600 3,637, ,566 (3,289,384) -90.4% TOTAL SEWER, STREET, WATER, AND STORM WATER 48,163,700 36,122,775 9,185,357 (26,937,418) -74.6% PORT FACILITIES Old Administration Building 6,519,200 4,889,400 67,568 (4,821,832) -98.6% Port Headquarters / Civic Center 5,481,500 4,111,125 2,388,996 (1,722,129) -41.9% Harbor Plaza Facilities Sitework PH 1-2 3,254,200 2,440,650 4,199,947 1,759, % Marine Maintenance Dock Facilities at Berth D48 2,659,500 1,994,625 2,208, , % Temporary Headquarters (IAO) 7,500 5,625 - (5,625) % TOTAL PORT FACILITIES 17,921,900 13,441,425 8,865,258 (4,576,167) -34.0% ENVIRONMENTAL PROJECTS Environmental Mitigation Projects 5,000,000 3,750,000 - (3,750,000) % Environmental Pilot Demonstration Projects 4,500,000 3,375, ,248 (2,926,752) -86.7% Pier A West Storm Water Management and Re-Vegetation 2,636,900 1,977,675 28,343 (1,949,332) -98.6% Middle Harbor - Mitigation Program 2,019,100 1,514,325 - (1,514,325) % Zero Emissions Infrastructure 250, ,500 - (187,500) % TOTAL ENVIRONMENTAL PROJECTS 14,406,000 10,804, ,591 (10,327,909) -95.6%

9 Attachment C FY 2018 Pro-rated FY 2018 DESCRIPTION Adopted Budget Actual Budget Oct - June (Oct - June) Variance Variance % PORT-WIDE SECURITY & SAFETY PROJECTS New Fire Station/Fire Boats 8,171,000 6,128,250 1,575,752 (4,552,498) -74.3% Firestation No. 6 Security Fence - - (31,618) (31,618) N/A Security Projects (Federal grant funded) 5,050,000 3,787,500 3,439,628 (347,872) -9.2% TOTAL PORT-WIDE SECURITY & SAFETY PROJECTS 13,221,000 9,915,750 4,983,762 (4,931,988) -49.7% IMFORMATION MANAGEMENT PROJECTS Applications Upgrade & Enhancement (Unifier, CRM, Ports, etc) 2,515,000 1,886, ,784 (1,181,466) -62.6% IM Security & Infrastructure Upgrade & Enhancement 1,650,000 1,237, ,076 (420,424) -34.0% TOTAL IMFORMATION MANAGEMENT PROJECTS 4,165,000 3,123,750 1,521,860 (1,601,890) -51.3% MISCELLANEOUS PROJECTS Heavy Machinery Replacement , ,379 N/A Navy Mole Road Reconstruction/Storm Surge Damage Repair 843, , , , % Rock Dike Replacements 175, , (130,609) -99.5% Outer Harbor Sediment Placemt & Ecosystem Rest. (OSHPER) Site 591, ,850 13,339 (430,511) -97.0% Fill Under Heim Bridge on Pier A 42,800 32,100 - (32,100) % Other Engineering Projects , ,479 N/A TOTAL MISCELLANEOUS PROJECTS 1,653,300 1,239,975 2,347,206 1,107, % TOTAL CAPITAL EXPENDITURES 456,539, ,404, ,076,759 (176,328,016) -51.5% * The capital expenditure amounts presented in this schedule do not include capitalized interest

10 Attachment D THE HARBOR DEPARTMENT OF THE CITY OF LONG BEACH STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITIONS FOR FISCAL YEARS 2018 AND 2017 YTD 9 Mons YTD 9 Mons $ % CHANGE CHANGE PORT OPERATING REVENUES BERTHS AND SPECIAL FACILITIES 291,741, ,435,343 30,306, % RENTAL PROPERTIES 11,135,321 10,717, , % MISCELLANEOUS 2,277,833 2,156, , % 1 TOTAL PORT OPERATING REVENUES 305,155, ,309,070 30,846, % PORT OPERATING EXPENSES FACILITY MAINTENANCE 4,473,972 3,459,352 1,014, % INFRASTRUCTURE MAINTENANCE 12,006,352 10,313,418 1,692, % FIRE & SAFETY 35,835,105 29,325,686 6,509, % OTHER INDIRECT OPERATING 11,418,567 8,407,198 3,011, % GENERAL & ADMINISTRATIVE 28,682,905 37,499,288 (8,816,383) -23.5% PORT OPERATING EXPENSES BEFORE DEPRECIATION AND AMORTIZATION 92,416,901 89,004,942 3,411, % 1 DEPRECIATION & AMORTIZATION 110,268, ,974,924 1,293, % 1 TOTAL OPERATING EXPENSES 202,685, ,979,866 4,705, % 1 INCOME FROM PORT OPERATIONS 102,469,425 76,329,204 26,140, % 1 NON-OPERATING INCOME (EXPENSE): 1 INTEREST EXPENSE x (22,870,761) (18,581,714) (4,289,048) 23.1% INTEREST INCOME 6,980,056 1,533,055 5,447, % GAINS ON SALE OF ASSETS 98,019 42,180 55, % INVESTMENT EQUITY INCOME (EXPENSE) % CLEAN AIR ACTION PLAN 458,306 (566,978) 1,025, % MISCELLANEOUS 1,556, , , % TOTAL NON-OPERATING INCOME (EXPENSE) (13,777,861) (16,869,245) 3,091, % GRANTS 1 GRANT REVENUES 44,089,700 51,221,346 (7,131,646) -13.9% PASS-THROUGH GRANT EXPENSES (342,176) - (342,176) 0.0% TOTAL GRANTS 43,747,525 51,221,346 (7,473,822) -14.6% OTHER OPERATING TRANSFER TO CITY - (349,915) 349, % TRANSFERS TO CITY TIDELANDS FUND (15,257,756) (13,715,454) (1,542,303) 11.2% TRANSFER TO CITY - POLB NEW HQ LAND % CAPITAL CONTRIBUTION - POLB NEW HQ LAND % TOTAL OPERATING TRANSFER (EXPENSE) (15,257,756) (14,065,369) (1,192,388) 8.5% NET INCOME 117,181,332 96,615,937 20,565, %

11 Attachment E THE HARBOR DEPARTMENT OF THE CITY OF LONG BEACH STATEMENT OF NET POSITION FOR FISCAL YEARS 2018 AND 2017 QTR ending June QTR ending June YEAR-TO-DATE YEAR-TO-DATE VARIANCE (%) ASSETS CURRENT ASSETS UNRESTRICTED CASH 430,438, ,567,317 95,871, % IMPREST CASH / CHANGE FUNDS % MARK TO MARKET N/A INTEREST RECEIVABLES (LEHMAN SETTLEMENT) N/A PREPAID 1,302,691 1,434,797 (132,106) -9.2% ACCOUNTS RECEIVABLE 72,070,220 51,541,679 20,528, % GRANTS RECEIVABLE 27,192,386 51,364,590 (24,172,204) -47.1% INVENTORY OF SUPPLIES AT AVERAGE COST 678, , , % CURRENT ASSETS - UNRESTRICTED SUB-TOTAL 531,683, ,409,711 92,273, % RESTRICTED ASSETS - HARBOR REVENUE BOND FUNDS & OTHER FUNDS POOLED CASH - DEBT SERVICE FUND 10,127,970 12,185,074 (2,057,104) -16.9% POOLED CASH - BOND RESERVE & CONSTRUCTION FDS 24,229,019 24,158,045 70, % NON POOLED CASH - BOND RESERVE & CONSTRUCTION FDS 103,999, ,213,011 (78,214,001) -42.9% TOTAL CURRENT ASSETS 670,039, ,965,841 12,073, % NON CURRENT ASSETS CAPITAL ASSETS LAND 1,219,282, ,935, ,347, % STRUCTURES & FACILITIES 1,593,373,181 1,566,508,895 26,864, % FURNITURE & EQUIPMENT 85,835,280 57,993,826 27,841, % CONSTRUCTION IN PROGRESS 1,563,521,475 1,667,326,241 (103,804,766) -6.2% PURCHASED RIGHTS OF WAY 207,031, ,031, % SUBTOTAL 4,669,044,068 4,450,795, ,248, % OTHER ASSETS LONG TERM RECEIVABLE - CITY DEPARTMENTS 1,300,000 1,300, % INVESTMENTS IN JOINT VENTURES 3,373,665 3,211, , % ENVIRONMENTAL MITIGATION BANK 39,351,253 41,162,274 (1,811,021) -4.4% RESTRICTED NON POOLED INVESTMENTS 42,602,821 58,290,702 (15,687,881) -26.9% OTHER NON CURRENT ASSETS 6,996,148 7,972,710 (976,562) -12.2% SUBTOTAL 93,623, ,936,982 (18,313,095) -16.4% TOTAL NON CURRENT ASSETS 4,762,667,955 4,562,732, ,935, % TOTAL ASSETS 5,432,707,417 5,220,698, ,008, % DEFERRED OUTFLOWS ON DEBT REFUNDING 3,281,062 4,073,141 (792,079) -19.4% DEFERRED OUTFLOWS ON NET PENSION LIABILITY 38,213,742 37,216, , % TOTAL ASSETS AND DEFERRED OUTFLOWS ON DEBT REFUNDING 5,474,202,221 5,261,988, ,213, % LIABILITIES CURRENT LIABILITIES PAYABLE FROM CURRENT ASSETS ACCOUNTS PAYABLE & ACCRUED EXPENSES (29,141,129) (23,348,087) (5,793,041) 24.8% DUE TO CITY (28,447,222) (26,547,227) (1,899,994) 7.2% DEFERRED CREDITS & CUSTOMER DEPOSITS AND FEES (5,292,787) (5,297,160) 4, % CONTINGENT LIABILITY - (1,000,000) 1,000, % CURRENT LIABILITIES PAYABLE FROM CURRENT ASSETS TOTAL (62,881,137) (56,192,475) (6,688,662) 11.9% CURRENT LIABILITIES PAYABLE FROM RESTRICTED ASSETS CURRENT PORTION OF BOND INDEBTEDNESS (45,965,000) (47,190,000) 1,225, % ACCRUED INTEREST PAYABLE (5,834,261) (5,128,154) (706,106) 13.8% CURRENT LIABILITIES PAYABLE FROM RESTRICTED ASSETS TOTAL (51,799,261) (52,318,154) 518, % LONG TERM LIABILITIES 1998 HARBOR REFUNDING BONDS - (16,600,000) 16,600, % PLUS: UNAMORTIZED BOND PREMIUM (559,745) (1,199,455) 639, % SUB-TOTAL (559,745) (17,799,455) 17,239, % 2010A HARBOR REVENUE BONDS (97,475,000) (111,185,000) 13,710, % PLUS: UNAMORTIZED BOND PREMIUM (5,609,119) (6,979,555) 1,370, % SUB-TOTAL (103,084,119) (118,164,555) 15,080, %

12 THE HARBOR DEPARTMENT OF THE CITY OF LONG BEACH STATEMENT OF NET POSITION FOR FISCAL YEARS 2018 AND 2017 Attachment E QTR ending June QTR ending June YEAR-TO-DATE YEAR-TO-DATE VARIANCE (%) 2010B HARBOR REFUNDING BONDS (109,200,000) (124,855,000) 15,655, % PLUS: UNAMORTIZED BOND PREMIUM (5,797,180) (6,999,320) 1,202, % SUB-TOTAL (114,997,180) (131,854,320) 16,857, % 2014A HARBOR REFUNDING BONDS - AMT N/A PLUS: UNAMORTIZED BOND PREMIUM - (0) % SUB-TOTAL - (0) % 2014B HARBOR REFUNDING BONDS - NON AMT (11,700,000) (11,700,000) - 0.0% PLUS: UNAMORTIZED BOND PREMIUM (1,642,367) (1,996,792) 354, % SUB-TOTAL (13,342,367) (13,696,792) 354, % 2014C HARBOR SHORT TERM NOTES (325,000,000) (325,000,000) - 0.0% PLUS: UNAMORTIZED BOND PREMIUM (9,225,247) (21,433,916) 12,208, % SUB-TOTAL (334,225,247) (346,433,916) 12,208, % 2015A HARBOR REFUNDING BONDS - AMT (33,115,000) (33,115,000) - 0.0% PLUS: UNAMORTIZED BOND PREMIUM (2,808,062) (3,767,021) 958, % SUB-TOTAL (35,923,062) (36,882,021) 958, % 2015B HARBOR REFUNDING BONDS - AMT (20,130,000) (20,130,000) - 0.0% PLUS: UNAMORTIZED BOND PREMIUM (3,317,346) (3,842,808) 525, % SUB-TOTAL (23,447,346) (23,972,808) 525, % 2015C HARBOR BONDS - AMT (66,085,000) (66,085,000) - 0.0% PLUS: UNAMORTIZED BOND PREMIUM (7,541,627) (8,130,617) 588, % SUB-TOTAL (73,626,627) (74,215,617) 588, % 2015D HARBOR BONDS - AMT (66,865,000) (66,865,000) - 0.0% PLUS: UNAMORTIZED BOND PREMIUM (7,707,650) (7,958,762) 251, % SUB-TOTAL (74,572,650) (74,823,762) 251, % 2017A HARBOR BONDS - AMT (101,610,000) (101,610,000) - 0.0% PLUS: UNAMORTIZED BOND PREMIUM (17,953,166) (18,813,349) 860, % SUB-TOTAL (119,563,166) (120,423,349) 860, % 2017B HARBOR GREEN BONDS - AMT (25,985,000) (25,985,000) - 0.0% PLUS: UNAMORTIZED BOND PREMIUM (4,024,822) (4,123,641) 98, % SUB-TOTAL (30,009,822) (30,108,641) 98, % 2017C HARBOR BONDS - NON AMT (42,660,000) (42,660,000) - 0.0% PLUS: UNAMORTIZED BOND PREMIUM (7,377,537) (7,523,783) 146, % SUB-TOTAL (50,037,537) (50,183,783) 146, % 2016 LINE OF CREDIT N/A COMPENSATED ABSENCES - LONG TERM (8,799,763) (10,882,741) 2,082, % NET OPEB LIABILITY (3,249,532) (3,102,924) (146,608) 4.7% NET PENSION LIABILITY (129,892,623) (124,169,593) (5,723,030) 4.6% UNEARNED REVENUE - LONG TERM (1,974,880) (3,000,937) 1,026, % ENVIRONMENTAL REMEDIATION LIABILITY (3,800,000) - (3,800,000) N/A OTHER LONG TERM LIABILITY (182,350,850) (86,361,990) (95,988,860) 111.1% LONG TERM LIABILITIES TOTAL (1,303,456,515) (1,266,077,204) (37,379,310) 3.0% TOTAL LIABILITIES (1,418,136,913) (1,374,587,834) (43,549,079) 3.2% DEFERRED INFLOWS ON DEBT REFUNDING (1,657,976) (2,117,251) 459, % DEFERRED INFLOWS ON NET PENSION LIABILITY (11,089,362) (8,640,796) (2,448,566) 28.3% TOTAL LIABILITIES AND DEFERRED INFLOWS (1,430,884,251) (1,385,345,881) (45,538,370) 3.3% NET POSITION INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT (3,617,301,498) (3,526,657,895) (90,643,604) 2.6% RESTRICTED RESTRICTED FOR DEBT SERVICE (4,293,709) (7,056,919) 2,763, % RESTRICTED FOR CAPITAL PROJECTS (39,351,253) (41,162,274) 1,811, % SUB-TOTAL RESTRICTED (43,644,962) (48,219,193) 4,574, % UNRESTRICTED (382,371,510) (301,765,457) (80,606,054) 26.7% TOTAL NET POSITION (4,043,317,971) (3,876,642,544) (166,675,426) 4.3%