2009 L.T.G.O. Bond Fund...36 BUDGET IN BRIEF. Revenue Bond Debt Service Fund Budget Format..6 Revenue Bond Reserve Fund..

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1 2017 FINAL BUDGET

2 TABLE OF CONTENTS INTRODUCTION SPECIAL FUNDS BUDGET Message from the Chief Executive Officer.. 2 Willow Grove Park Fund About Your Port....3 Property Tax Fund Organizational Chart Consolidated Debt Service...34 The Budget Process L.T.G.O. Bond Fund L.T.G.O. Bond Fund...36 BUDGET IN BRIEF Revenue Bond Debt Service Fund Budget Format..6 Revenue Bond Reserve Fund..38 Budget Summary by Business Line.. 9 General Reserve Fund Operating Revenue vs Expense by Business Line...10 Schedule of Long Term Debt 40 Cash Basis Budget by Fund CAPITAL BUDGET GENERAL FUND BUDGET Consolidated Summary Summary.. 12 Port Wide Projects/Equipment Non-Departmental Leased Marine Terminals.. 44 Board of Commissioners Operating Marine Terminals Administration Non-Marine Industrial Business Development.. 19 Community External Affairs Operations.. 23 PROPERTY TAX Environmental, Planning & Safety Tax Levy History Facilities/Engineering Taxes and Their Use Non-Operating Loan Schedule..31 Page 1

3 MESSAGE FROM THE CHIEF EXECUTIVE OFFICER Norm Krehbiel, CEO On behalf of the Port of Longview, I am pleased to present to you our 2017 Budget. Throughout the document you will notice significant changes designed to better communicate the Commission s priorities and increase financial transparency. Many of the improvements to this year s budget are driven by the Port s Strategic Business Plan. Adopted by the Board of Commissioners last summer, this plan establishes goals and supporting priorities that will drive key business decisions over the next three to five years. Most notably, this budget focuses on the Port s lines of business. With a sizeable asset portfolio and diverse cargo and leased property operations, the newly established budget format increases the detail to which Port business can be analyzed to ensure the highest and best return on our investments. Also underway, and a driver of the newly structured budget, is a suite of financial policies that ensure the Port remains in good financial health. These new policies guide financial decisions that increase transparency and accountability across all departments. The Commission and staff have worked tirelessly to produce a budget that, in combination with the Strategic Business Plan, outlines a clear and successful path forward. Sincerely, STRATEGIC BUSINESS PLAN HIGHLIGHTS Identify and improve operating cost efficiencies. Analyze and determine which commodities result in the highest margin of return. Continue the transition of Berth 2 to the Leased Terminal Portfolio. Continue efforts in preparing Barlow Point for development for a long term lease. Conduct an evaluation of the physical conditions of buildings to assess needed improvements and overall viability. Develop and maintain a forecast of operating and capital needs for the park facilities and funding strategy that considers use of property tax. Norm Krehbiel Chief Executive Officer Page 2

4 ABOUT YOUR PORT The Port of Longview is a premiere West Coast cargo handling facility serving as the transfer point for cargos moving across the globe. The Port is the first full-service operating port on the deep-draft Columbia River, 66 miles from the Pacific Ocean in Southwest Washington State. As the Gateway to the Pacific, the Port provides direct connections to all major modes of transportation rail, roadway, river and runway. With eight marine terminals, warehouses, rolling stock and waterfront industrial property spanning 835 acres, the Port s portfolio offers cargo handling services second-to-none. Foresight and strategic investments have readied the Port to meet diverse cargo needs and expanding international markets. The Port is a regional economic engine driving economic development and job creation for the benefit of our community. Bob Bagaason, Dist. 3 President Governance The Port is governed by a board of three, non-partisan elected commissioners. The Port Commission establishes the overall goals and direction for the Port through policy, which drives development, growth and cargo operations across the Port's facilities. The Chief Executive Officer is the sole employee of the Commission, who s role is to execute Commission policy and manage overall Port operations. Formation of the Port of Longview 1911 Port district allows geographical areas to form ports for the economic benefit of their community 1921 Established as Port of Kelso on the Cowlitz river by vote of citizens 1925 Relocated to the current location at the end of Oregon Way 1926 First grain elevator began construction, which closed in Renamed Port of Longview Doug Averett, Dist. 2 Vice-President Jeff Wilson, Dist. 1 Secretary Page 3

5 ORGANIZATIONAL CHART Board of Commissioners (3) Auditor Counsel Chief Executive Officer Executive Assistant/ Commission Coordinator Chief Financial Officer Chief Operating Officer (vacant) Chief Administration Officer Controller Contracts & PurchasingManager Director of Business Development (vacant) Director of Terminal Operations (vacant) Director of Facilities & Engineering Director of Planning & Environmental Director of External Affairs Human Resources Manager Payroll Specialist Contracts Administrator Manager of Business Development Manager of Terminal Operations Project Manager Environmental Manager Communications Associate Systems Administrator Accounts Payable Specialist Procurement Specialist (vacant) Business Development Associate Senior Terminal Superintendent Project Engineer (2) (1 vacant) Environmental Field Manager EHS Specialist Communications Coordinator Systems Analyst Accounts Receivables Specialist Business Development Assistant Terminal Superintendents (3) Facilities Superintendent Environmental Technician Records Officer/ Admin Assistant Longshore Steady Labor Maintenance Crew Admin Assistant/ Receptionist November 2016 Outside Security Park Host 34 Full Time Admin Employees 26 Maintenance Crew 27 Longshore Steady Labor Page 4

6 THE BUDGET PROCESS The Port of Longview s budget process began in earnest in September. The first step of the process involved a series of meetings with the Commission to develop a set of comprehensive financial policies that will guide the Port in budget development and overall fiscal management of the Port s resources. At the same time, Port staff developed a series of new budget reporting formats that are designed to incorporate the recommendations contained within the 2016 Strategic Business Plan adopted by the Commission earlier in the year. The Strategic Business Plan identified the Port s various lines of business and developed specific goals for each. For 2017, the budget is reported by business line as well as by fund with the goal of providing the Commission and the community with a more complete picture of the Port s financial condition. Each department within the organization prepared its budget with the strategic goals in mind. The Board of Commissioners held budget workshops on October 18 th and 19 th to review budget requests and provide direction to staff on preparing the proposed budget. Additional budget presentations were given during the Commission s October 27 th and 31 st meetings. A public hearing was conducted on November 8 th for the purpose of reviewing the proposed budget and establishing the property tax levy for On November 22 nd, the Commission adopted the final budget. Page 5

7 2017 BUDGET FORMAT The Port s 2017 Budget looks completely different from prior year budget presentations. We have attempted to provide greater clarity and understanding of the Port s financial condition by preparing a number of new report formats. Hopefully, these new reports will allow the Commission and the community to have a more robust view of the Port s operating results and its available cash balances. Outlined below is a description of the new budget formats and the order in which each is presented BUDGET SUMMARY BY BUSINESS LINE Page 9 of the Budget document summarizes the 2017 Net Operating Income (Loss) Before Depreciation by business line. This presentation is designed to meet the Port s Strategic Business Plan recommendation to reflect the Port s net profit or loss for its leased terminals, operating terminals, non-marine industrial properties, and community (Willow Grove Park). The budget for 2017 anticipates that the leased terminal business line will generate a $4.2 million net profit before depreciation. The operating terminal business line is expected to incur a net loss before depreciation primarily due to the major maintenance projects that will be performed in Willow Grove Park will require a subsidy from the General Fund to cover the costs of its operations and capital budget. Combined, the budget by business line reflects net operating income before depreciation of $3.1 million. Page 10 is a graphic depiction of the results of each business line. CASH BASIS BUDGET BY FUND For 2017, the Port s budget is also divided into six separate funds which are reflected on page 11 of the budget document. A fund is an accounting structure that reports revenues and expenses in accordance with a specific purpose, either defined by the Commissioners or by external requirements such as bond covenants. Two of the many benefits of fund accounting are the ability to clearly reflect the uses of the Port s revenue streams and the ending cash balance in each fund. The six new funds and the purposes of each are: 1. General Fund. This fund accounts for all non-restricted revenue and expenses of the Port. All the Port s operating activities from its marine and non-marine industrial properties are accounted for in the General Fund. In prior years, this fund was called the Maintenance Fund. Page 6

8 2017 BUDGET FORMAT 2. Capital Projects Fund. This fund accounts for the Port s capital expenditures. This is a new fund that is designed to separately capture capital outlays and show the funding mechanisms for these projects. For 2017, the capital budget is $4,452,285 which includes $831,160 in carryforward projects from As can been seen on this report, the capital projects fund is funded by transfers from the General Fund and the Property Tax Fund. 3. Willow Grove Park Fund. This fund accounts for the revenue and expense of Willow Grove Park. For 2017, the majority of the funds revenue comes in the form of a subsidy of $466,910 from the General Fund. 4. Debt Service Fund. The Port has several outstanding bond issues in the form of both limited tax general obligation debt and revenue bonds. The Debt Service Fund shows the annual principal and interest payments on these outstanding bonds for It also serves a particularly important function by clearly indicating the Port s requirement under its outstanding bond covenants to maintain a specific cash balance in the fund. For 2017, the Port is required to maintain approximately $2.2 million in reserve to comply with the terms of the Port s revenue bond covenants. The debt service on the outstanding limited tax general obligation bonds is funded through a transfer of approximately $1.5 million from the property tax fund and a General Fund transfer of approximately $1.5 million to pay the debt service on the revenue bonds. 5. Property Tax Fund. The creation of this fund will allow the Commission and the public to see how property tax revenues are used by the Port. In the past, there have been concerns that property tax revenues were used to support the general operations of the Port because there was no mechanism in place to show the use of these revenues. For 2017, the property tax revenue would be used to pay the debt service on the outstanding limited tax general obligation bonds and the remainder would be dedicated to capital projects. 6. General Reserve Fund. In 2013, the Commission established this fund by resolution to set aside funds for capital projects and other lawful purposes. The goal of this fund is to accumulate sufficient cash for the potential purchase of the Skyline building upon the expiration of Skyline s lease in The 2017 Budget by Fund incorporates all the changes the Commission has made during its budget workshops. After inclusion of these changes, the General Fund s ending working capital will fall below the targeted level established in the draft financial policies. The desired ending working capital level based on four months operating expenses is approximately $11 million. The ending working capital level in the final budget is $10.6 million, which is $400,000 below the target. Page 7

9 2017 BUDGET FORMAT GENERAL FUND BUDGET Page 12 of this document is the 2017 Budget for the General Fund. It summarizes all operating and non-operating revenues and expenses for this fund. GENERAL FUND DEPARTMENT BUDGETS Beginning on page 13, detailed budgets for each of the Port s departments are shown. Each department budget includes a narrative explanation of the department s purpose and identifies significant initiatives that the department plans to achieve during SPECIAL FUND BUDGETS The itemized budgets for the Willow Grove, Property Tax, Debt Service and General Reserve Funds begin on page 32. For 2017, the Commission has decided to levy property taxes at an amount substantially below the highest lawful level. The amount to be levied is approximately $2.6 million representing a rate of $ per $1,000 of assessed valuation. CAPITAL BUDGET The 2017 Capital Budget begins with a summary of all capital projects by business line on page 41. Following the summary, a detailed budget by business line is included. Page 8

10 2017 BUDGET SUMMARY BY BUSINESS LINE Operating Revenues Leased Terminals Operating Terminals Non-Marine Industrial Community Economic Development Totals Dockage $11,359,036 $1,639,114 $0 $0 $0 $12,998,150 Wharfage 783,657 1,813, ,597,518 S & F 1,580, , ,087,802 Storage 120,750 1,132, ,253,531 All Handling -Longshore Labor 6,932,916 4,343, , ,481,660 Stevedoring 1,472, , ,059,746 Environmental 151, , ,468 Security 369, , ,182 Equip Rent 96,391 1,375, ,472,008 Property Rental 418,457 4, , ,205,678 Misc 18, , ,988 Willow Grove Park , ,000 Total Revenues $23,304,163 $12,184,810 $988,759 $60,000 $0 $36,537,732 Operating Expenditures Longshore Labor 4,285,197 2,491, ,645 6,946,335 Longshore Benefits 3,305,868 1,925, ,417 5,362,407 Stevedoring 1,361, , ,043,731 Operations Expenses 2,469,001 1,632,051 83,695 4,184,747 Environmental Expenses 1,155, ,792 39,169 1,958,442 Facility & Engineering Expenses 3,205,439 3,353, ,150 6,847,523 G&A Allocations 3,321,518 2,195, , ,910 6,056,601 Total Operating Expenditures $19,104,381 $13,043,826 $824,670 $426,910 $0 $33,399,787 Net Operating Income (Loss) Before Depreciation $4,199,782 ($859,016) $164,089 ($366,910) $0 $3,137,946 Capital Outlay by Business Line $950,000 $1,205,000 $180,000 $100,000 $0 $2,435,000 Capital Outlay - Portwide Capital 1,186,125 Total Capital Outlay $3,621,125 Page 9

11 2017 OPERATING REVENUE VS EXPENSE BY BUSINESS LINE $ Millions 10 5 Revenue Assigned Oper. Exp. Net before OH & Depreciation Net after OH before Depreciation 0-5 Leased Marine Terminals Operating Marine Terminals Non-Marine Industrial Community Page 10

12 Cash Cash Basis Basis Budget Budget by by by Fund Fund 2017 CASH BASIS BUDGET BY FUND Capital Willow Grove Debt Property General Total General Projects Park Service Tax Reserve All Fund Fund Fund Fund Fund Fund Funds Estimated Beginning Working Capital $ 12,522,319 $ 2,415,907 $ - $ 2,788,028 $ - $ 3,312,909 $ 21,039,163 Operating Activity: Operating Revenues 36,477,732 36,477,732 Operating Expenditures (32,972,877) (32,972,877) Willow Grove Park Revenue 60,000 60,000 Willow Grove Park Expenditures (426,910) (426,910) Total Operating Net Income (Loss) 3,504,856 - (366,910) ,137,946 Non-Operating Activity: Revenues: Property Tax Levy 2,606,196 2,606,196 Interest Income 48,500 9,000 10,000 67,500 Other Non-Operating Income 146, ,000 Expenditures: - Potential ILA Commitment (65,000) (65,000) Special Projects - CR O&M (79,116) (79,116) Special Projects - CR O&M/CMP (66,000) (66,000) Special Projects - BCRTP Grant (45,000) (45,000) Loan Payments (1,299,176) (1,299,176) Other Miscellaneous Expenditures (74,500) (74,500) Revenue Bond Payments (2,074,477) (2,074,477) LTGO Bond Payments (1,504,598) (1,504,598) Total Non-Operating Income (Loss) (1,434,292) - - (3,570,074) 2,606,196 10,000 (2,388,171) Capital Expenditures: Capital Grants 223, ,875 Port Wide Capital Projects/Equipment (1,410,000) (1,410,000) Leased Marine Terminals (970,000) (970,000) Operating Marine Terminals (1,185,000) (1,185,000) Non-Marine Industrial (180,000) (180,000) Community (100,000) (100,000) 2016 Carryforward Projects (831,160) (831,160) Total Capital Expenditures - (4,352,285) (100,000) (4,452,285) Fund Transfers: To Capital Projects from General Fund (BP Environ. Fee) (400,000) 400,000 - To Capital Projects from General Fund (434,780) 434,780 - To Capital Projects from Property Tax 1,101,598 (1,101,598) - To Debt Service Fund (LTGO's) from Property Tax Fund 1,504,598 (1,504,598) - To Debt Service Fund (Revenue Bonds) from General Fund (1,496,518) 1,496,518 - To Willow Grove from General Fund (466,910) 466,910 - To General Reserve Fund from General Fund (1,200,000) 1,200,000 - Total Fund Transfers (3,998,208) 1,936, ,910 3,001,116 (2,606,196) 1,200,000 - Estimated Ending Working Capital $ 10,594,674 $ - $ - $ 2,219,069 $ - $ 4,522,909 $ 17,336,653 Page 11

13 2017 GENERAL FUND BUDGET: SUMMARY Budget Projected Budget Estimated Beginning Working Capital $14,355,959 $14,355,959 $12,522,319 Revenues: Operating Revenue $38,426,388 $38,337,086 $36,477,732 Non-Operating Revenue 192, , ,500 Total Revenues $38,618,388 $38,455,586 $36,672,232 Operating Expenditures: Non-Departmental $1,193,921 $1,080,389 $1,370,916 Commission 446, , ,982 Administration 2,466,005 2,568,893 2,634,560 Business Development 618, , ,656 External Affairs 590, , ,577 Operations 19,255,955 19,023,914 18,537,220 Environmental/Planning 1,450,327 1,289,213 1,958,442 Facilities/Engineering 5,455,663 4,877,680 6,847,523 Total Operating Expenditures $31,477,364 $30,093,475 $32,972,877 Total Non-Operating Expenditures $9,410,556 $10,195,751 $5,627,000 Total Expenditures $40,887,920 $40,289,226 $38,599,877 Excess (Deficit) (2,269,532) (1,833,640) (1,927,645) Estimated Ending Working Capital $12,086,427 $12,522,319 $10,594,674 Page 12

14 2017 GENERAL FUND BUDGET: NON-DEPARTMENTAL Description For 2017, a new cost center entitled non-departmental is included in the budget. This cost center is designed to capture the General Fund costs that are not specific to a particular department and are not controllable by an individual department. The major costs included in nondepartmental are the anticipated costs of legal expense relating to special projects and the on-going environmental litigation. Additionally, the Port s organization wide memberships and insurance costs are budgeted here. There are no staff costs included in the non-departmental budget. Budget Highlights No new programs or initiatives are anticipated in the non-departmental budget. Page 13

15 2017 GENERAL FUND BUDGET: NON-DEPARTMENTAL Actual Actual Budget Projected Budget NON-DEPARTMENTAL EXPENDITURES: Janitorial Expenses $26,675 $25,157 $25,000 $23,145 $25,000 Legal Expense - Projects 328, , ,000 58, ,000 Insurance Recovery Expense 749, , , , ,000 Telephone/Fax 40,231 50,714 42,000 42,654 45,000 Outside Services-Longview Fire Protection 104,631 70,400 70,400 66,700 70,000 Membership Dues and Fees 147, , , , ,916 Insurance & Bonds 490, , , , ,000 TOTAL EXPENDITURES $1,887,626 $1,608,594 $1,193,921 $1,080,389 $1,370,916 Page 14

16 2017 GENERAL FUND BUDGET: BOARD OF COMMISSIONERS Description For 2017, costs relating to the Board of Commissioners have been removed from the Administration budget and separated into a new budget cost center. The purpose of this change is to provide greater transparency in the Port s budget. Commissioner compensation expense includes a monthly stipend of $635 and a $114 per diem rate for attendance at official meetings of the Port district or in performance of other service on behalf of the district. The per diem compensation is subject to an annual maximum amount of $10,944 (96 meetings) for each commissioner. Commissioners and their dependents are eligible for medical, dental, vision and life insurance benefits. As part of the their governance role, the Commissioners attend training events and other functions offered by organizations devoted to the Port industry including the Washington Public Ports Association, Pacific Northwest Waterways Association, American Association of Port Authorities and others. The anticipated costs of attendance at these event functions are budgeted under the Conferences/Travel line item. A budget of $10,000 has been included for miscellaneous expenses that may be incurred over the course of the budget year. Page 15

17 2017 GENERAL FUND BUDGET: BOARD OF COMMISSIONERS Actual Actual Budget Projected Budget COMMISSION EXPENDITURES: Commissioner Compensation $44,856 $46,105 $105,112 $55,692 $55,692 Commissioner Benefits 28,298 39,366 56,694 59,290 Commissioner Conferences/Travel 5,978 13,786 30,000 22,500 25,000 Legal Expense - General Counsel 207, , , ,000 Commission Expense 4,275 10,261 11,000 9,643 10,000 TOTAL EXPENDITURES $83,407 $317,511 $446,112 $350,952 $354,982 Page 16

18 2017 GENERAL FUND BUDGET: ADMINISTRATION Description The Administration Budget captures the costs of the Port s internal support services. The departments and functions included in this budget are: the Office of the Chief Executive Officer, Finance and Procurement, Human Resources, Information Technology and General Administrative services. For 2017, the Administration Budget includes funding for 16 full time employees including the currently vacant position of Chief Operating Officer. In total, the Administration Budget represents approximately 8% of the total operating budget. Budget Highlights The 2017 Administration Budget continues the Port s employee wellness program, and for the first time tracks the costs of public record requests. In all other respects, the budget maintains the current level of support services as in past years. No new programs or new positions are included Budget Initiatives The 2017 initiatives for the internal support functions align with the Commission s newly adopted Strategic Plan. The initiatives include: Reimplementation of the Port s financial software to include a new chart of accounts that will facilitate reporting of the financial condition of each business line. Develop the requirements for a computerized maintenance management system (CMMS) including graphical information system (GIS) to facilitate the creation of reliable information to make informed decisions on the maintenance and replacement of the Port s assets. Develop a model to facilitate full costing of the Port s business lines. Bring the Port s bond reporting requirements into compliance. Page 17

19 2017 GENERAL FUND BUDGET: ADMINISTRATION Actual Actual Budget Projected Budget ADMINISTRATION EXPENDITURES: Salaries $1,097,515 $1,217,737 $1,314,855 $1,416,259 $1,407,664 Benefits 574, , , ,445 $734,646 Employee Relations 14,357 15,000 11,350 5,000 Office Furniture 4,282 8,182 24,000 7,708 10,000 Office Equipment 7,259 13,819 14,561 11,000 Hardware/Software & Maintenance 52,859 57,421 84,000 73,723 76,000 Connection/Hosting Services 27,379 28,691 36,000 34,000 42,000 Legal Expense - Public Record 16,513 51,486 75,000 Legal Expense - Employment 35, ,382 25,000 Office Expenses 43,753 51,172 42,000 42,000 42,000 Outside Professional Services 47, ,450 82,000 79, ,000 Publications/Public Notices 3,736 4,552 3,000 1,812 3,000 Employee Training/Conferences/Travel 76,810 92,297 76,300 38,607 50,000 Employee Wellness Program 2,232 6,953 15,000 9,177 12,000 Regulatory Expense (WA State Audit) 21,122 17,175 18,000 21,436 21,250 Auto Allowance 7,847 7,800 9, Misc. General Expense 8,978 12,744 10,000 10,000 10,000 Admin Fee Credit (1,477) (3,224) (820) Uncollectible Accounts 1,440 0 TOTAL EXPENDITURES $1,974,367 $2,394,019 $2,466,005 $2,568,893 $2,634,560 Page 18

20 2017 GENERAL FUND BUDGET: BUSINESS DEVELOPMENT Description The Business Development Budget captures the costs of the Port s marketing and business development efforts for all lines of business that was adopted in the 2016 Strategic Plan. The functions included in this budget are: Trade Promotion, Trade Exhibitions, Business Travel, and Promotional Hosting. For 2017, the Business Development Budget includes funding for 3 full time employees. In total, the Business Development Budget represents approximately 1.9% of the total operating budget. Budget Highlights The 2017 Business Development Budget will focus on the completion of the Bridgeview Terminal RFP, a land value evaluation, the start of the Barlow Point RFI, and developing Berth 4 RFP for leased terminals lines of business. The focus for Operating Terminals will be to look for a longterm customer and to meet or exceed operating expense Budget Initiatives The 2017 initiatives for the Business Development functions align with the Commission s newly adopted Strategic Plan. The initiatives include: Completion of Bridgeview Terminal Lease Port Land Value Evaluation to support leased terminal negotiations. Barlow Point RFI Process. Berth 4 RFI Process. Strive to find long-term customers for operating berths and to meet or exceed operating costs. Page 19

21 2017 GENERAL FUND BUDGET: BUSINESS DEVELOPMENT Actual Actual Budget Projected Budget BUSINESS DEVELOPMENT EXPENDITURES: Salaries $192,839 $212,217 $226,644 $192,617 $289,070 Benefits 106, , , , ,086 Trade Promotion 43,773 48,257 65,000 20,637 50,000 Trade Exhibitions 36,653 35,858 55,000 31,599 45,000 Trade Travel 23,222 24,486 65,200 17,500 55,000 Auto Allowance 4,800 4,800 4,800 4,800 Promotional Hosting 9,794 13,546 25,000 6,286 15,000 Outside Professional Services 47,762 44,269 40,000 54,779 35,000 Office Furniture 1,500 Employee Training/Conferences/Travel 5,394 2,299 10,000 1,072 6,500 Misc. General Expense 4, , ,500 TOTAL EXPENDITURES $475,465 $499,838 $618,459 $437,428 $663,656 Page 20

22 2017 GENERAL FUND BUDGET: EXTERNAL AFFAIRS Description The Office of External Affairs (OEA) acts as the conduit between the Port of Longview and our many stakeholders. Functions included in this department include community relations, business development communications and government affairs. For 2017, the External Affairs budget includes funding for 3 full-time employees. In total, this department s budget represents approximately 1.8% of the total operating budget. Budget Highlights The 2017 External Affairs budget has realigned categories to increase transparency and better identify fund uses. Most notably, the former community relations category has been divided into three new categories advertising, public education and community partnership/promotion. Also new this year and to better align duties with budgets, the Business Development advertising budget has been moved under the OEA overall budget Budget Initiatives The 2017 initiatives for the communications functions include: Expand Summer Tour Series to meet growing community demand Develop multiple promotional videos/ visuals to communicate port operations Develop and execute a new Business Development communications campaign Complete new website to improve functionality and user experience Purchase & training of drone technology to improve record of unique operations and facilities for promotional purposes Page 21

23 2017 GENERAL FUND BUDGET: EXTERNAL AFFAIRS Actual Actual Budget Projected Budget EXTERNAL AFFAIRS EXPENDITURES: Salaries $118,951 $97,330 $210,462 $159,284 $199,769 Benefits 69,638 63, ,335 77,864 94,458 Advertising - Community 62,494 64,284 60,000 70,000 50,000 Advertising - Trade 83, , ,000 79, ,000 Public Education 14,227 12,377 20,000 15,000 50,000 Community Partnership/Promotion 21,901 4,680 1,000 15,000 Government Relations 4,914 17,370 25,000 18,000 25,000 Outside Professional Services 77,307 23,692 50,000 30,000 50,000 Office Furniture 2,151 1,000 Publications/Public Notices Employee Training/Conferences/Travel 8,039 10,039 13,625 11,425 15,000 Misc. General Expense 1, ,000 TOTAL EXPENDITURES $461,980 $403,779 $590,922 $465,006 $605,577 Page 22

24 2017 GENERAL FUND BUDGET: OPERATIONS Description The Operations Department is responsible for managing all cargo activity for the Port s operating berths and certain leased berths. Nearly every category in the Operations Budget is commodity driven, including longshore wages and benefits, cargo handling expenses, equipment rental, safety supplies, fuels and security costs. The budget includes funding for the Department s five full time administrative employees and for the approximately 27 longshore positions that provide mechanic, millwright and utility duties under Port management on a full time basis. These steady longshore positions are accounted for under the Bulk Handling Equipment-Wages and Other Equipment and Vehicles-Wages line items. All other longshore positions are hired based on vessel activity and are accounted for under the Longshore Wages and Benefits line items. In total, the Operations Department represents approximately 56% of the operating budget. Budget Highlights For 2017, the Operations Budget is based on a cargo projection that assumes 153,500 metric tons of import activity and 7.5 million metric tons of export activity Budget Initiatives The 2017 initiatives for the Operations Department align with the Commission s newly adopted Strategic Business Plan. The initiatives include: Identify and improve operating cost efficiencies Coordinate the development of a preventative maintenance plan for berth 5 Page 23

25 2017 GENERAL FUND BUDGET: OPERATIONS Actual Actual Budget Projected Budget OPERATIONS EXPENDITURES: Administrative Salaries $578,389 $666,686 $561,060 $492,234 $454,582 Administrative Benefits 254, , , , ,496 Longshoremen Wages 5,410,690 6,311,641 6,009,668 5,453,778 5,516,091 Bulk Handling Equipment - Wages 766, , , , ,703 Other Equipment and Vehicles - Wages 682, , , , ,541 Longshoremen Fringe Benefits 5,632,972 5,997,628 5,930,316 5,632,850 5,362,407 Bulk Handling Equipment - Materials 199, , , , ,000 Other Equipment and Vehicles - Materials 254, , , , ,000 Cargo Handling Exp 120 6,782 18,000 21,081 20,000 Demurrage 1,425 23,025 20,250 20,000 Over/Short and Damage Claims - Cargo Related 2,633 10,000 Overweight Penalty 2,800 9,825 6,550 Contract Stevedoring 2,030,387 2,056,092 1,990,044 2,024,909 2,043,731 MFSA First Arrival Fee (Pass Through) 16,095 17,090 26,145 18,550 Laundry Expense - Cargo Related 17,390 27,635 18,000 18,630 19,189 Operating Supplies - Cargo Related 24,675 86,431 22,150 36,182 27,137 Waste Disposal - Cargo Related 36,795 68,278 60,000 68,991 51,743 Outside Services - Cargo Related 7,602 15,218 7,900 30,723 25,000 Outside Services - Security 946,153 1,010, , , ,000 Equipment Rental - Cargo Related 581, , , , ,000 Equipment Expense - Fuel, etc. 322, , , , ,000 Truck (licensed) Expense - Fuel, etc. 96,290 71,551 75,000 56,311 75,000 Equipment Rental - Non Cargo Related 14,367 11,041 5,500 44,236 18,000 Page 24

26 2017 GENERAL FUND BUDGET: OPERATIONS (continued) Actual Actual Budget Projected Budget OPERATIONS EXPENDITURES: Water/Sewer $243,210 $294,697 $665,000 $344,544 $375,000 Electricity 437, , , ,000 Operating Supplies - General 113, ,229 95,000 70,971 95,000 Small Tools & Tool Repairs 13,653 35,027 20,000 41,461 29,000 Safety Equip & Supplies 90, , ,000 78, ,000 Janitor Supplies - Outside 9,602 11,704 7,500 16,042 15,000 Claims & Damages 19,310 33,397 15,000 15,000 15,000 B&O Taxes and Assessments 115, , , , ,000 Tug & Pilot Service 26,193 10,000 10,000 Office Furniture 298 Publications/Public Notices Employee Training/Conferences/Travel 3,353 10,869 9,925 11,711 12,000 Misc. General Expense 5,887 6,703 9,000 2,457 5,000 Admin Fee Credit (8,371) (13,066) (3,864) TOTAL EXPENDITURES $18,944,887 $20,541,918 $19,255,955 $19,023,914 $18,537,220 Page 25

27 2017 GENERAL FUND BUDGET: PLANNING, ENVIRONMENTAL & SAFETY Description The Planning, Environmental, Health and Safety (PEHS) Budget captures the costs of the Port s PEHS support services. The department s functions included in this budget are: planning efforts related to Comprehensive Scheme of Harbor Improvements, master planning functions of port properties, industrial water system, rail infrastructure, business continuity, property development, grants, and local, state, and federal agency coordination; environmental functions of the port related to environmental stewardship, wastewater treatment, stormwater management, spill response, air emissions, site contamination cleanup, permitting, and hazardous waste management; and, health and safety functions related to safety culture program development, policy and procedure development, implementation of the Port s accident and prevention program, rail safety planning, training, and education. For 2017, the PEHS Budget includes funding for five full time employees. In total, the PEHS Budget represents approximately 6% of the total operating budget. Budget Highlights The 2017 PEHS Budget continues to make measured progress in planning efforts to ready the Port for future development, advance environmental programs to ensure the Port is consistent with regulatory requirements, and continuing the Port s efforts regarding environmental stewardship. Additionally, the health and safety department is developing a program to enhance and promote safety throughout the Port. In all other respects, the budget maintains the current level of support services as in past years. Health and safety was transitioned back into this department mid 2016; no other new positions are included Budget Initiatives The 2017 initiatives align with the Commission s newly adopted Strategic Plan. The initiatives include: Continuation of planning efforts to prepare properties and infrastructure for new economic opportunities. Invest in our stormwater, wastewater, and air emission infrastructure to guarantee regulatory compliance. Promote a safe and healthy work environment. Partnership with local, state, and federal agencies to ensure the Port s freight network (road, rail, and waterway) is optimal for commerce. Page 26

28 2017 GENERAL FUND BUDGET: PLANNING, ENVIRONMENTAL & SAFETY Actual Actual Budget Projected Budget ENVIRONMENTAL/PLANNING EXPENDITURES: Environmental: Salaries $241,710 $353,119 $326,085 $326,625 $397,164 Benefits 116, , , , ,778 Environmental Expense - General 83,784 48, ,800 87,553 80,500 Wastewater Conveyance & Treatment Facilities 155, , , , ,000 Stormwater Conveyance & Treatment Facilities 79,741 72, ,000 85,925 41,000 On-site Remediation 18, ,000 9,243 60,000 Legal Expense - Environmental 35,712 40,800 Outside Professional Services 598,500 Employee Training/Conferences/Travel 7,338 15,182 13,000 12,000 15,800 Misc. General Expense 729 2,303 2,500 1,500 2,500 Planning: Outside Professional Services (15,492) 587, , , ,000 Planning 31,155 17,265 30,000 10,000 Employee Training/Conferences/Travel 2,263 4, Misc. General Expenses 1,062 2,272 12,500 6,111 1,500 Safety: Outside Professional Services 25,000 Employee Training/Conferences/Travel 6,400 Misc. General Expenses 1,000 TOTAL EXPENDITURES $719,712 $1,454,597 $1,450,327 $1,289,213 $1,958,442 Page 27

29 2017 GENERAL FUND BUDGET: FACILITIES/ENGINEERING Description The Department of Facilities and Engineering is responsible for maintaining the Port s investment in docks, buildings, utility infrastructure, roadways and railroad tracks. This department is staffed by 5 full time administrative positions, which includes a presently unfilled Project Engineer position. Total cost for these positions is the sum of two budget line items, Administrative Salaries and Administrative Employee Benefits. The Department also maintains a steady maintenance crew of 26 workers, which includes pilebucks, carpenters, laborers, equipment operators, electricians, plumbers, painters and sprinkler fitters. Cost for the steady maintenance crew is budgeted under the Wages and Benefits line item. In total, the Department of Facilities and Engineering represents 21% of the operating budget. Budget Highlights For 2017, the Department of Facilities and Engineering will be undertaking several major maintenance and capital improvement projects that will support the Port s lines of business. These projects include, but are not limited to installing doors and additional lighting at Warehouses 10 and 11, replacing the Warehouse 10 north roof, constructing a truck loadout building at Berth 7, expanding wastewater containment at the Berth 7 backup area, the, Port-wide paving project, the rail maintenance project and the biennial fender pile maintenance project Budget Initiatives The 2017 initiatives for the Department of Facilities and Engineering align with the Port Commission s newly adopted Strategic Business Plan. The initiatives include: A condition assessment of all docks and transit sheds. Development of a more in-depth project estimating program to provide more accurate engineer s estimates especially regarding labor hours. Incrementally replace the Port s existing water distribution system to increase water flow and pressure. Incrementally replace/repair the Port s sprinkler systems beginning at the docks, transit sheds and other critical facilities. Incrementally replace/repair electrical systems based on strategic decisions and critical facilities. Page 28

30 2017 GENERAL FUND BUDGET: FACILITIES/ENGINEERING Actual Actual Budget Projected Budget FACILITIES/ENGINEERING EXPENDITURES: Administrative Salaries $365,374 $416,748 $631,200 $378,323 $412,292 Administrative Benefits 167, , , , ,531 Wages & Benefits 2,178,755 2,211,309 2,928,500 2,700,000 3,625,000 Materials 483, , , ,000 1,400,000 Security for Port Facilities (Keys/Fencing) 1,595 8,008 7,000 7,500 Operating Supplies (General) 118, , , ,000 Janitorial Supplies - Outside 6,014 6,344 5,000 5,000 Equipment Rental 33,023 63,983 50,000 31,000 65,000 Dredging 94, , ,000 40,000 Small Tools & Tool Repairs 34,115 41,801 50,000 36,570 50,000 Safety Equip & Supplies 22,464 32,543 55,000 18,000 40,000 Laundry Expense 4,167 8,148 10,000 7,500 8,000 Non-Marine Leased Property Maintenance 12,938 22,392 20,000 52, ,000 Outside Services 511, , , , ,000 Office Furniture 1,000 Publications/Public Notices 381 1,000 Employee Training/Conferences/Travel 14,250 21,975 23,000 8,000 15,000 Misc. General Expense 1,156 1,232 2, ,200 Admin Fee Credit (2,462) (4,811) (1,171) TOTAL EXPENDITURES $3,951,733 $4,266,234 $5,455,663 $4,877,680 $6,847,523 Page 29

31 2017 GENERAL FUND BUDGET: NON-OPERATING Actual Actual Budget Projected Budget NON-OPERATING EXPENDITURES: Potential ILA Commitment $65,000 $90,000 $76,000 $76,000 $65,000 Special Projects - CR O&M 96, ,980 $90,000 46,021 79,116 Special Projects - CR O&M/CMP 66,000 Special Projects - Mt. Solo Landfill 9,500 0 Special Projects - Fastlane Grant Application 6,698 0 Special Projects - Stern Bouys 159,583 0 Special Projects - BCRTP Grant 0 45,000 Diking Assessment 64,748 63,385 $65,337 57,038 60,000 Election Expense 16, ,000 15,391 0 Personal Property Tax Expense 11,244 11,000 Misc. Non-Operating Expense 48,215 12,249 3,200 10,946 3,500 Long-Term Debt Payments 853,674 1,104,641 1,485,827 1,485,827 1,299,176 Transfers to Willow Grove 641, ,910 Transfers to Capital Fund 4,400,000 4,400, ,780 Transfers to Revenue Bond Debt Service Funds 2,284,920 2,294,190 2,076,192 2,076,192 1,496,518 Transfers to General Reserve Fund 600, ,000 1,200,000 1,200,000 1,200,000 TOTAL EXPENDITURES $4,029,958 $4,593,445 $9,410,556 $10,195,751 $5,627,000 Page 30

32 2017 GENERAL FUND BUDGET: LOAN SCHEDULE Actual Actual Projected Budget LONG-TERM DEBT PAYMENTS: PRINCIPAL PAYMENTS: CERB Loan 006 $60,735 $63,407 $66,197 $69,109 CERB Loan ,297 60,900 61,509 62,124 CERB Loan ,429 County Loan 16,510 17,012 17,515 18,062 WSDOT Rail Loan 46,560 46,560 46,560 46,560 Volvo Loader Loan 149, , ,572 40,375 Liebherr Crane Capital Lease 385, , , , Case Backhoe Capital Lease 9,867 20,642 21,916 Genie Manlift Capital Lease 36,483 55,145 57, Volvo L180H Wheel Loader Capital Lease 27,992 88,002 94, Volvo L180H Wheel Loader Capital Lease 36,452 87,505 TOTAL PRINCIPAL PAYMENTS $719,420 $951,131 $1,109,980 $1,154,273 INTEREST PAYMENTS: CERB Loan ,905 15,232 12,442 9,530 CERB Loan 157 7,647 7,044 6,435 5,820 CERB Loan ,778 40,000 County Loan 6,445 5,943 5,440 4,892 WSDOT Rail Loan Volvo Loader Loan 12,760 8,307 3, Liebherr Crane Capital Lease 89,498 98,786 74,324 48, Case Backhoe Capital Lease 3,277 5,645 4,372 Genie Manlift Capital Lease 4,896 5,165 2, Volvo L180H Wheel Loader Capital Lease 10,025 26,049 19, Volvo L180H Wheel Loader Capital Lease 3,848 9,214 TOTAL INTEREST PAYMENTS $134,254 $153,510 $375,846 $144,903 TOTAL LONG-TERM DEBT PAYMENTS $853,674 $1,104,641 $1,485,827 $1,299,176 Page 31

33 2017 WILLOW GROVE PARK BUDGET Actual Budget Projected Budget WILLOW GROVE PARK EXPENDITURES: Administrative Salaries $37,987 Administrative Benefits 23,603 Maintenance Wages & Benefits $171,500 $203, ,000 Materials 73,500 72,000 35,000 Dredging 250, ,000 10,000 Equipment Rental/Operating Expense 15,000 10,000 Small Tools & Equipment 1,600 5,000 Security Services 25,133 Water/Sewer 24,866 40,000 Electricity 2,278 12,000 Waste Disposal 22,258 36,000 Janitorial Supplies 1,484 30,000 Safety Equip/Supplies & Expense Telephone Expense 1,005 2,460 Legal Expense 2,685 39,336 40,000 Office Expense Connection/Hosting Services 1,995 Publications/Public Notices 360 Planning 3,216 Merchant Credit Card Fees 613 1,360 Misc. General Expense 1,628 2,500 TOTAL EXPENDITURES $2,685 $495,000 $666,455 $426,910 Page 32

34 2017 PROPERTY TAX FUND BUDGET Actual Projected Proposed BEGINNING CASH ON HAND $0 $0 $0 RESOURCES: Tax Levy 3,150,380 3,086,877 2,606,196 TOTAL RESOURCES $3,150,380 $3,086,877 $2,606,196 DISBURSEMENTS: 2008 L.T.G.O. Bond Fund 689, , , L.T.G.O. Bond Fund 597, , ,398 Capital Projects Fund 1,863,184 1,647,700 1,101,598 TOTAL DISBURSEMENTS $3,150,380 $3,086,877 $2,606,196 ENDING CASH ON HAND $0 $0 $0 Page 33

35 CONSOLIDATED DEBT SERVICE FUNDS Actual Projected Budget Beginning Cash on Hand $2,575,967 $2,761,830 $2,788,030 RESOURCES: Transfers from Property Tax Fund 1,339,854 1,439,177 1,504,598 Transfers from General Fund 2,294,190 2,076,192 1,496,518 Misc Tax Collections 126,787 76,000 0 Interest on Investments 6,364 12,600 9,000 TOTAL RESOURCES $3,767,195 $3,603,969 $3,010,116 DISBURSEMENTS: Principal Payments 2,625,000 2,705,000 2,800,000 Interest Payments 956, , ,074 TOTAL DISBURSEMENTS $3,581,332 $3,577,769 $3,579,074 ENDING CASH ON HAND $2,761,830 $2,788,030 $2,219,072 *This is a consolidation of the following debt service and debt reserve funds: 2008 LTGO Bond Fund 2009 LTGO Bond Fund Revenue Bond Debt Service Fund Revenue Bond Reserve Fund Page 34

36 2008 LTGO BOND FUND Actual Projected Budget BEGINNING CASH ON HAND $214,243 $311,235 $323,069 RESOURCES: Tax Levy (Collected) 718, , ,200 Misc. Tax Collections 67,678 44,000 0 Interest on Investments 779 2,000 0 TOTAL RESOURCES $786,792 $918,034 $908,200 DISBURSEMENTS: Principal Payments 465, , ,000 Interest Payments 224, , ,200 TOTAL DISBURSEMENTS $689,800 $906,200 $908,200 ENDING CASH ON HAND $311,235 $323,069 $323,069 Page 35

37 2009 LTGO BOND FUND Actual Projected Budget BEGINNING CASH ON HAND $16,008 $99,616 $104,286 RESOURCES: Tax Levy 621, , ,398 Misc. Tax Collections 59,108 32,000 0 Interest on Investments TOTAL RESOURCES $680,951 $600,042 $596,398 DISBURSEMENTS: Principal Payments 315, , ,000 Interest Payments 282, , ,398 TOTAL DISBURSEMENTS $597,343 $595,373 $596,398 ENDING CASH ON HAND $99,616 $104,286 $104,286 Actual Projected Budget LONG-TERM DEBT PAYMENTS: PRINCIPAL PAYMENTS: 2009 LTGO Series A $315,000 $325,000 $340, LTGO Series B LTGO Series C TOTAL PRINCIPAL PAYMENTS $315,000 $325,000 $340,000 INTEREST PAYMENTS: 2009 LTGO Series A 62,448 50,478 36, LTGO Series B 159, , , LTGO Series C 60,750 60,750 60,750 TOTAL INTEREST PAYMENTS $282,343 $270,373 $256,398 TOTAL LONG-TERM DEBT PAYMENTS $597,343 $595,373 $596,398 Page 36

38 REVENUE BOND DEBT SERVICE FUND Actual Projected Budget BEGINNING CASH ON HAND $667,895 $673,159 $682,854 RESOURCES: Cash Transfers from General Fund 2,294,190 2,076,192 1,496,518 Interest on Investments 5,263 9,700 9,000 TOTAL RESOURCES $2,299,453 $2,085,892 $1,505,518 DISBURSEMENTS: Principal Payments 1,845,000 1,680,000 1,730,000 Interest Payments 449, , ,477 TOTAL DISBURSEMENTS $2,294,189 $2,076,197 $2,074,477 ENDING CASH ON HAND $673,159 $682,854 $113,895 Actual Projected Budget LONG-TERM DEBT PAYMENTS: PRINCIPAL PAYMENTS: 2011A Revenue Bonds $155,000 $160,000 $170, A Revenue Refunding Bonds 1,690,000 1,520,000 1,560,000 TOTAL PRINCIPAL PAYMENTS $1,845,000 $1,680,000 $1,730,000 INTEREST PAYMENTS: 2011A Revenue Bonds $206,831 $199,469 $191, A Revenue Refunding Bonds 188, ,428 99, B Revenue Refunding Bonds 54,300 54,300 54,300 TOTAL INTEREST PAYMENTS $449,189 $396,197 $344,477 TOTAL LONG-TERM DEBT PAYMENTS $2,294,189 $2,076,197 $2,074,477 Page 37

39 REVENUE BOND RESERVE FUND Actual Projected Budget BEGINNING CASH ON HAND $1,677,821 $1,677,821 $1,677,821 RESOURCES: None TOTAL RESOURCES $0 $0 $0 DISBURSEMENTS: None TOTAL DISBURSEMENTS $0 $0 $0 ENDING CASH ON HAND $1,677,821 $1,677,821 $1,677,821 Page 38

40 GENERAL RESERVE FUND Actual Projected Budget BEGINNING CASH ON HAND $1,201,140 $2,103,409 $3,312,909 RESOURCES: Cash Transfers from General Fund 900,000 1,200,000 1,200,000 Interest on Investments 2,270 9,500 10,000 TOTAL RESOURCES $902,270 $1,209,500 $1,210,000 DISBURSEMENTS: None TOTAL DISBURSEMENTS $0 $0 $0 ENDING CASH ON HAND $2,103,409 $3,312,909 $4,522,909 Page 39

41 2017 SCHEDULE OF LONG TERM DEBT L.T.G.O. BONDS REVENUE BONDS OTHER DEBT 2008A 2009A 2009B 2009C TOTAL TOTAL WhiteHouse CERB Equipment TOTAL YEAR Limited Tax Limited Tax Limited Tax Limited Tax L.T.G.O. Bond Revenue Rev Ref Rev Ref Revenue Renovation CERB Debt OTHER TOTAL Gen Oblig Gen Oblig Gen Oblig Gen Oblig Debt A' A' B' Debt Loan CERB DEBT Ref Bonds Bonds Bonds Bonds PRIN & INT Bonds Bonds Bonds PRIN & INT (County) WADOT PRIN & INT 2017 $908,200 $376,502 $159,145 $60,750 $1,504,597 $361,069 $1,659,108 $54,300 $2,074,477 $22,955 $304,573 $971,650 $1,299,177 $4,878, , , ,145 60,750 1,504, ,169 1,448, ,300 2,072,189 22, , ,693 1,214,363 4,791, ,600 84, ,145 60,750 1,172, ,569 1,714,050 2,075,619 22, , , ,298 3,965, , ,345 60,750 1,503, , ,919 22, , , ,189 2,230, , ,745 60,750 1,500, , ,569 22, ,505 56, ,880 2,153, , ,545 60,750 1,501, , ,169 22, , ,603 2,093, ,745 60, , , ,719 22, , ,746 1,187, ,823 60, , , ,869 22, , ,328 1,136, ,030 60, , , , , ,516 1,111, ,368 60, , , ,569 85,714 85,714 1,038, , , , , ,706 82,857 82,857 1,036, , , ,000 80, , , , ,143 77, , ,286 74,286 74,286 $5,104,200 $836,364 $4,947,870 $1,967,250 $12,855,684 $3,953,282 $3,107,828 $2,032,650 $9,093,760 $183,639 $2,473,342 $2,442,117 $5,099,099 $27,048,543 White House: County Loan-final pmt June 2024 * Brown Strauss Whse: CERB Loan- final pmt Jan 2019 * Rail Line #2: Dept of Commerce CERB-final pmt Jan 2025 * Berth 9 Ship Dock: CERB Loan-1st pmt Jan 2016 & final pmt Jan 2030 * Rail Loop Connection : WADOT loan-1st pmt July 2014 final pmt July 2023 Equipment Debt Includes: 2012 Volvo Wheel Loader 2013 Liebherr Crane 2015 Case Backhoe 2015 Genie 85' Manlift 2015 Wheel Loader 2016 Wheel Loader Page 40

42 2017 CAPITAL BUDGET: CONSOLIDATED SUMMARY Number of Projects Business Line 2016 Carry Forward 2017 Project Budget 2017 Cash Expenditures Funding for New Projects Port Grants 14 Port Wide Capital Projects/Equipment $0 $1,410,000 $1,410,000 $1,186,125 $223,875 6 Leased Marine Terminals 439, ,000 1,389,160 1,389, Operating Marine Terminals 392,000 1,205,000 1,597,000 1,597, Non-Marine Industrial 0 180, , ,000 0 Community 0 100, , ,000 0 Total Dollars for All Projects $831,160 $3,845,000 $4,676,160 $4,452,285 $223,875 Page 41

43 2017 CAPITAL BUDGET: PORT WIDE PROJECTS/EQUIPMENT Project Title Project Type 2016 Carry Forward 2017 Project Budget 2017 Cash Expenditures Funding for New Projects Port Capital Grants Fund Safety Items Health, Safety & Security $50,000 $50,000 $50,000 Preventative Maintenance Software Accounting Software Re- Implementation Additional Hardware/Server Storage Hydraulic Breaker for Backhoe Administrative 50,000 50,000 50,000 Administrative 185, , ,000 Administrative 30,000 30,000 30,000 Facility Equipment 25,000 25,000 25,000 Scissor Lift (Slimline) Facility Equipment 45,000 45,000 45, ft Boom Manlift Facility Equipment 210, , ,000 Dump Truck Facility Equipment 70,000 70,000 70,000 Page 42

44 2017 CAPITAL BUDGET: PORT WIDE PROJECTS/EQUIPMENT (cont d) Project Title Project Type 2016 Carry Forward 2017 Project Budget 2017 Cash Expenditures Funding for New Projects Port Capital Grants Fund 4 - Pickup Trucks Vehicles $104,000 $104,000 $104, Sprinter Vans Vehicles 70,000 70,000 70,000 Trailer Mounted Air Compressor Trailer Mounted Water Valve Exerciser Facility Equipment 47,500 47,500 47,500 Facility Equipment 25,000 25,000 25,000 Sample Point 1 FEMA Grant - Generators Regulatory Requirements Health, Safety & Security 200, , , , ,500 74, ,875 Total Dollars for Port Wide Capital Projects/Equipment $0 $1,410,000 $1,410,000 $1,186,125 $223,875 Page 43

45 2017 CAPITAL BUDGET: LEASED MARINE TERMINALS Project Title Water Rights - Industrial Water System Plan & Implementation Berth 4 Gangway Landing IRC Rail Expansion B2/B7 Wastewater Treatment - Discharge Meter/Sample Station Project Type Regulatory Requirements Opportunities/ Potential Revenue Generator Opportunities/ Potential Revenue Generator Regulatory Requirements 2016 Carry Forward 2017 Project Budget 2017 Cash Expenditures $160,000 $160,000 $160, , , , , , , ,000 20,000 20,000 20,000 Funding for New Projects Port Capital Grants Fund Automatic Oiler at Fibre Way Overpass Bulks/Breakbulk 100, , ,000 Berth 4 Layberth Opportunities/ Potential Revenue Generator 194, , ,160 Total Dollars for Leased Marine Terminals Capital $439,160 $950,000 $1,389,160 $1,389,160 $0 Page 44

46 2017 CAPITAL BUDGET: OPERATING MARINE TERMINALS Project Title Project Type 2016 Carry Forward 2017 Project Budget 2017 Cash Expenditures Funding for New Projects Port Capital Grants Fund Berth 7 Loadout Regulatory Requirements $350,000 $350,000 $350,000 Bag Houses (2) Regulatory Requirements 400, , ,000 Skid Steer Bulk - Equipment 35,000 35,000 35,000 Warehouse 10/11 Doors Air Emissions Berth 6/7 Containment B2/B7 Wastewater Treatment - Discharge Meter/Sample Station Regulatory Requirements Regulatory Requirements Regulatory Requirements Regulatory Requirements 400, , ,000 72,000 72,000 72, , , ,000 20,000 20,000 20,000 Total Dollars for Operating Marine Terminals Capital $392,000 $1,205,000 $1,597,000 $1,597,000 $0 Page 45

47 2017 CAPITAL BUDGET: NON-MARINE INDUSTRIAL Project Title Project Type 2016 Carry Forward 2017 Project Budget 2017 Cash Expenditures Funding for New Projects Port Capital Grants Fund Warehouse 20 Sprinklers Regulatory Requirements $180,000 $180,000 $180,000 Total Dollars for Non-Marine Industrial Capital $0 $180,000 $180,000 $180,000 $0 Page 46

48 2017 CAPITAL BUDGET: COMMUNITY Project Title Project Type 2016 Carry Forward 2017 Project Budget 2017 Cash Expenditures Funding for New Projects Port Willow Grants Grove Park Willow Grove Park $100,000 $100,000 $100,000 Total Dollars for Community Capital $0 $100,000 $100,000 $100,000 $0 Page 47

49 TAX LEVY HISTORY Valuation Rate Tax LEVY 2016/COLLECT 2017 $7,575,314,578 LTGO Bond Debt Service $ $1,504,598 Capital Projects ,101,598 TOTAL TAX RATE & COLLECTIONS $ $2,606,196 LEVY 2015/COLLECT 2016 $7,390,247,553 LTGO Bond Debt Service $ $1,439,177 Capital Projects ,647,700 TOTAL TAX RATE & COLLECTIONS $ $3,086,877 LEVY 2014/COLLECT 2015 $7,331,264,916 LTGO Bond Debt Service $ $1,287,199 Capital Projects ,863,727 TOTAL TAX RATE & COLLECTIONS $ $3,150,926 LEVY 2013/COLLECT 2014 $6,907,310,717 LTGO Bond Debt Service $ $909,762 Capital Projects ,198,528 TOTAL TAX RATE & COLLECTIONS $ $3,108,290 Page 48

50 2017 TAXES AND THEIR USE Revenue 6.7% 93.3% Operating Revenue Taxes Taxes Used for % 42.3% Capital Projects Debt Page 49