2012_Final_Budget

November 3, 2011November 3, 2011

Operating Budget & Capital Operating Budget & Capital Improvement PlanImprovement Plan

1

TTaabbllee ooff CCoonntteennttss

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 Operating Budget FINANCIAL OVERVIEW 8 2012 BUDGET SUMMARY INCOME STATEMENT 9 2012 OPERATING BUDGET 7-YEAR TRENDS 10 AIRPORT 12 CAP SANTE BOAT HAVEN 13 MARINE TERMINAL 14 PROPERTY RENTALS 15 2012 COMBINED OPERATING BUDGET 16 Capital Improvement Plan (CIP) OVERVIEW 18 CIP GLOSSARY OF TERMS 19 CIP CONSOLIDATED SUMMARY 20 2012 CIP 21

Capital Purchases 2012 CAPITAL PURCHASES 26 Cash Flow Projections DEFINITIONS & ASSUMPTIONS 27 CASH FLOW PROJECTIONS 2010-2014 27 Property Tax 2012 TAX AT A GLANCE 33 2012 TAX LEVY 34 DISTRICT PROPERTY TAX DISTRIBUTION 35 2011 CLASS A PORT TAX LEVY COMPARISONS 36 Supplemental Information 2012 BUDGET – SUPPLEMENTAL COMPARISONS 37 TREASURER’S REPORT 49 SCHEDULE OF SALARY GRADES FOR FULL-TIME POSITIONS 51

Cover Photo: Port Staff at the new Anthony’s Restaurant (Photo by Steve Berentson)

2

MMeessssaaggee ffrroomm tthhee EExxeeccuuttiivvee DDiirreeccttoorr

Message from the Executive Director Thank you for your interest in the Port of Anacortes’ 2012 Budget. The Port of Anacortes is in the midst of executing its 20-plus year Comprehensive Plan for growth. This year’s focus will be on renewal of the Port’s older facilities and building systems.

Over 140 slips in the Cap Sante Boat Haven will be vastly improved with the long awaited replacement of 1960’s vintage E & F Docks. This $7 million capital project will replace dilapidated creosoted wood piles and floats with a state of the art concrete monolithic and steel pile system. The Harbormaster’s office complex will receive a new energy efficient heating, ventilating and air conditioning system to replace the 20-year old system still in operation.

At the Marine Terminal, the Port will begin in earnest the export of prilled sulfur from the Marsulex Company prilling plant in Mount Vernon. The Port’s Transit Shed complex will receive some new pile supports, as well as a fire protection system in the common area. The Port administrative offices will receive a new energy efficient heating and ventilating system, as well as some interior office space upgrades. The 1960’s vintage long shore workers building at Pier 2 will be replaced and relocated, which will make way for future cargoes.

At the Anacortes Airport, the Port will begin a 2-year process to update the Airport’s 1994 Master Plan.

Environmental cleanup efforts will include work on the former Shell Site at 13th Street and Q Avenue, as well as at the Port’s Log Pocket area adjacent to Pier 2.

In connection to our community the Port will again host the PassageMaker Magazine Trawlerfest, Waterfront Festival, the Cap Sante Marina Summer Concert Series, summer performers on the Central Pier of the Boat Haven, and the Puget Sound Anglers Salmon Derby at the Cap Sante Boat Haven, as well as the popular Anacortes Workboat Races, now entering its fourth year.

The 2012 budget also provides resources for targeted marketing efforts for the Port to increase transient boat traffic, rendezvous and cruising groups, and permanent moorage. 2012 will see the Port having a continued presence at the Seattle Boat Show, local festivals, as well as a much more active role in the community.

Furthering our partnerships, 2012 will be a year in which the Port will continue to work collaboratively and synergistically with the City of Anacortes, Chamber of Commerce, the Anacortes Futures Project, the Marine Trades Association, the Anacortes School District, Port tenants, local Tribes, the Port of Skagit, Skagit County, and the community to create living wage jobs and commerce while enhancing the quality of life in our local community.

2012 looks to be yet another exciting year for the Port of Anacortes. If you have any questions or would like a tour of the Port, please call me at 360.293.3134.

Robert W. Hyde Executive Director

3

WWhhoo WWee AArree//WWhhaatt WWee DDoo

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 (R.C.W. Title 53 et seq.). The Port is authorized by statute of the State of Washington to provide for the development and maintenance of harbors and terminals, promote tourism and foster economic activity in its district. 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 the Revised Code of Washington 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 is authorized by Washington law (R.C.W. 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.

4

OOrrggaanniizzaattiioonnaall CChhaarrtt

Organizational Chart

5

CCoommmmiissssiioonneerrss

Commissioners

Steve Hopley Commissioner 2011 District 3 Term Expires: December 31, 2011 Commissioner Hopley was initially elected Port Commissioner in 2003. Mr. Hopley’s career included commercial fishing and fishing/vessel management. Mr. Hopley has a B.A. in Chemistry from the University of Washington and an MA from University of Washington College of Forest Resources. Mr. Hopley is retired. Mrs. Hopley is a part-time employee at Sonofresco, a local coffee roaster manufacturer.

Pat D. Mooney Commission Vice-President 2011 District 4 Term Expires: December 31, 2011 Commissioner Mooney was initially elected Port Commissioner in 1999. Mr. Mooney is a life-long Anacortes resident. He and wife, Betty, opened Piston Service Auto Parts in 1967, now run by their son, Patrick and son-in-law, Kenth. The Mooneys enjoy community service, travel and spending time with their active family. Mr. and Mrs. Mooney are retired.

Ray Niver Commission Secretary 2011 District 1 Term Expires: December 31, 2013 Commissioner Niver was initially elected Port Commissioner in 2001. Mr. Niver received a B.S. degree from the University of Washington. He is a retired systems analyst with experience in both the private and public sector.

Keith Rubin Commission President 2011 District 5 Term Expires: December 31, 2013 Commissioner Rubin was initially elected Port Commissioner in 2005. Mr. Rubin's careers include work on ferries, dredging, commercial fishing and seafood processing management. He has owned and run several successful small businesses. Mr. Rubin is retired and spends time promoting sustainability in order to build a stronger community with emphasis on public policy and how those policies affect food, energy and transportation. Mr. Rubin is a lifelong boater and is a volunteer with the Sea Scouts. Mr. Rubin is landlord of a single residential rental property and boards horses on his local farm. Mrs. Rubin is retired.

William L. Short Commissioner 2011 District 2 Term Expires: December 31, 2013 Commissioner Short was initially elected Port Commissioner in 2001. Mr. Short’s career included experience as a design engineer, aircraft administrator, college level business and economic professor, restaurant operator/owner and finally as an independent stockbroker of his own firm for 18 years. Mr. Short retired to Anacortes in 1996. Mr. Short has a BBA degree in Business Administration and an MBA, both from California Western University. Mr. Short enjoys sailing and is active in the Kiwanis Club’s Thrift Store. Mrs. Short is also retired.

6

CCoommmmiissssiioonneerr DDiissttrriicctt MMaapp

Commissioner District Map

7

TThhee BBuuddggeett PPrroocceessss

The Budget Process The budget has several major purposes. It converts the Port’s plans and policies into services and future capital improvement projects. It serves as a vehicle to communicate these plans to the public, shows the costs of Port services and projects and outlines the revenues that will support these services and projects, including the rate of taxation for the coming fiscal year. Once the Commission has adopted the budget, it becomes the work plan to be accomplished during the next fiscal year. The budget process began in mid-summer with a “Call for Projects” meeting attended by the Port’s Managers and Directors. Based on guidelines and goals established by the management team, Managers prepared individual budgets for their departments that were initially discussed and reviewed with each department’s Director. The Executive Director and Director of Finance and Administration met with management staff individually and as a team several times between September and October to discuss budget issues and priorities for the year 2012 and beyond. The 2012 preliminary budget was reviewed and refined by staff and then a copy was provided to the Commission on September 16, 2011 in anticipation of the budget study session. On October 6, 2011, a study session was held regarding the various components of the budget. Legal Notices were placed in the local papers on October 19, 20, and 27, 2011, advising the preliminary budget would be available on October 27, 2011, and noting the Public Hearing date. Citizen involvement and understanding of the budget is a key part of the review process. Upon request, staff is available to answer questions and provide explanations. A Public Hearing will be held on November 3, 2011 for the Commission to hear public comment regarding the 2012 Budget. The budget is scheduled for adoption at that hearing, with a special budget hearing continuation meeting if necessary. Chris Johnson Director of Finance and Administration

Photo: Fidalgo Island Aerial View (Photo by Steve Berentson)

8

FFiinnaanncciiaall OOvveerrvviieeww

Financial Overview

Operating Revenues (Excluding Operating Grant Revenues) The 2012 budget reflects total operating revenues of $13.7 million, which an increase of 19.1% from the 2011 budget. Overall, the Port’s revenues are spread throughout the operating units with Airport providing 2%, Cap Sante Boat Haven 47%, Marine Terminal 41% and Property Rentals 10% of operating revenues.

Operating Expenses Port wide operating expenses are budgeted to be $12.8 million in 2012, a 20.7% increase from the 2011 budget. General and administrative expenses total $2.6 million, or 20.3% of total operating expenses, and are allocated to each operating segment as a percentage of total operating expenses.

Operating Income The 2012 budget reflects a net operating income of $911,294, a 5.1% increase when compared to the 2011 budget.

Non-Operating Revenues & Expenses The 2012 budget reflects a $530,000 tax levy, which was the same amount levied each year for the last five years. Interest income is budgeted conservatively at $50,200 for 2012, as it is the Port’s expectation to use available General, Construction, and Environmental Fund cash balances towards our 2012 budgeted capital and environmental projects. Included in the 2012 environmental items are expenses and grants related to continued environmental activities principally at the South Basin Property and the Port’s Log Pocket area adjacent to Pier 2.

Net Income The 2012 budget reflects a net income of $1.1 million, a decrease when compared to the budgeted net income for 2011. This decrease is primarily related to non-operating environmental activities.

9

22001122 BBuuddggeett SSuummmmaarryy IInnccoommee SSttaatteemmeenntt

2012 Budget Summary Income Statement

Photo: 3rd Annual Port of Anacortes Workboat Races (Photo by Steve Berentson)

OPERATING REVENUES Marine Terminal $ 5,578,820

Cap Sante Boat Haven 6,416,750 Airport 275,300 Properties 1,440,167

-

TOTAL OPERATING REVENUES 13,711,037

OPERATING EXPENSES Marine Terminal 3,126,893

Cap Sante Boat Haven 3,655,863 Airport 99,321 Properties 256,902 G&A 2,595,517 Operations 776,982

-

SUBTOTAL 10,511,478

Depreciation 2,288,265

-

TOTAL OPERATING EXPENSE 12,799,743

NET OPERATING INCOME $ 911,294

=

Non-Operating Revenues 681,962 Non-Operating Expenses (749,253)

-

NET NON-OPERATING (67,291) Capital Grants - All Departments $ 942,500

-

NET INCOME BEFORE ENVIRONMENTAL 1,786,503

ENVIRONMENTAL ACTIVITY Environmental Grants and Recoveries 483,050

Environmental Expenses (1,518,049) GASB 49 Costs Previously Accrued 334,025

-

NET ENVIRONMENTAL (700,974)

-

NET INCOME $ 1,085,529

10

22001122 OOppeerraattiinngg BBuuddggeett:: RReevveennuuee && EExxppeennssee TTrreennddss

2012 Operating Budget 7-Year Trends

11

22001122 OOppeerraattiinngg BBuuddggeett:: OOppeerraattiinngg RReevveennuuee ppeerr FFTTEE**

*Full Time Equivalent Employee

12

22001122 OOppeerraattiinngg BBuuddggeett:: AAiirrppoorrtt

Airport Overview: Overall, airport revenue in 2012 is expected to remain flat. The high cost of fuel as well as the current economic climate has resulted in fewer passengers and flights coupled with continued hangar vacancies. However, the majority of the airport revenues are secured with long term leases. 2012 Significant Initiatives:

• The Port Commission will begin 20 year Master Plan Process • No major Capital Improvement projects are planned for

2012. • Port staff will continue to work with businesses and

individuals who have expressed interest in negotiating leases and constructing hangars.

• The Port staff will continue to facilitate a public process for addressing compatibility, noise and safety issues at the Anacortes Airport through the Anacortes Airport Advisory Committee.

Revenues: T-Hangars $ 105,000

Properties 159,000 Operations 11,300

Total Operating Revenues 275,300

Expenses: Wages & Benefits -

Operations & Maintenance 184,056 G&A Allocation 64,670 Depreciation 372,698

Total Operating Expenses 621,424

Net Operating Income (346,124)

Capital Grant -

Net Loss $ (346,124)

Photo: Anacortes Airport

13

22001122 OOppeerraattiinngg BBuuddggeett:: CCaapp SSaannttee BBooaatt HHaavveenn

Cap Sante Boat Haven Overview: The Boat Haven’s permanent moorage revenues are expected to slightly decrease during the reconstruction of E & F docks but will rise again in the summer season when E & F are reopened. Moorage rates are projected to increase by 3%, effective in July 2012. Transient moorage rates will increase by $0.05 to $1.15 a linear foot. Fuel cost will continue to fluctuate but the margin will move with the market. Aggressive pricing will maintain 2011 volume levels. A full year of rental revenue from the Seafarers Memorial Park building is projected. 2012 Significant Initiatives:

• Staff will demolish and replace “E” and “F” docks. • West Basin Redevelopment – The Boat Haven staff will

assist, as appropriate, in the ongoing upland development efforts for the West Basin.

• The Boat Haven will continue to actively support premier community events such as the Waterfront Festival, Trawlerfest, Anacortes Salmon Derby, sailing regattas as well as the Spring and Fall Floating Boat Shows.

• Staff will market the Boat Haven to yacht clubs and boat owner organizations as a rendezvous destination.

• Staff will also work with the community organizations to sponsor the Friday Night Concert Series.

• Cap Sante Boat Haven Marina Advisory Committee - The Port staff will continue to facilitate a public process for addressing policies, procedures, pricing, development and safety issues at the Marina.

Revenues:

Moorage $ 3, 522,200 Fuel Dock/Flowage 2,430,750 Other 463,800

Total Operating Revenues 6,416,750

Expenses: Wages & Benefits 715,359

Operations & Maintenance 3,389,051 G&A Allocation 1,442,189 Depreciation 869,656

Total Operating Expenses 6,416,255

Net Operating Income 495

Capital Grant 367,500

Net Income $ 367,995

14

22001122 OOppeerraattiinngg BBuuddggeett:: MMaarriinnee TTeerrmmiinnaall

Marine Terminal Overview: Shipping of petroleum coke and sulfur continues to be the primary revenue-generating activity at the Marine Terminal. Petroleum coke shipments are expected to remain similar to 2011 levels. No major changes in the Port’s coke handling operations are anticipated in 2012. Sulfur export tonnage is estimated to be 100,000 metric tons. Dockage revenue from berthing of barges is expected to remain constant in 2012.

2012 Significant Initiatives:

• Security – Staff will continue to implement the Marine Terminal Homeland Security Plan.

• Planned Capital Projects include a new rest room facility, Main Gate access controls with cameras, and cathodic protection for the mooring dolphins.

• Marketing – Staff will continue to aggressively market the Port’s terminal facilities:

o Negotiate a new petroleum coke export contract effective June 2013.

o To secure new export volumes. o To secure new marine cargo opportunities such as

“Heavy Lifts” for Pier 2. o To increase additional docking revenues for barges. o To market Curtis Wharf in response to the needs of

the local shipping community.

Revenues: Handling $ 2,463,100

Terminal Services 2,457,450 Other 658,270


Expenses: Wages & Benefits 2,572,045

Operations & Maintenance 677,160 G&A Allocation 1,141,646 Depreciation 697,058

Total Operating Expenses 5,087,909

Net Operating Income 490,911

Capital Grants 575,000

Net Income $ 1,065,911

15

22001122 OOppeerraattiinngg BBuuddggeett:: PPrrooppeerrttyy RReennttaallss

Property Rentals Overview: The majority of Property Rentals revenues are determined by an already negotiated lease rate with increases either set by Consumer Price Index (CPI) or by a fixed rate. For 2012, the Property Rentals operating revenues are budgeted to reflect 2% CPI increases. Due to the popularity of the Transit Shed for event hosting, revenues are expected to increase by 5% in 2012 for that facility.

2012 Significant Initiatives:

• The Puget Sound Rope new office building will be ready for occupancy in December of 2011.

• The port will continue to acquire properties within the Port’s Comprehensive Plan when available and affordable.

• The “O” Avenue Mitigation Site annual monitoring began in 2011. Annual mitigation site monitoring for the Fidalgo Bay Eelgrass Mitigation Site began in 2010. Both are required by the permitting agencies for Project Pier 1. Expenses for both sites are slightly below $100,000 per year and are reflected in the Property Rentals Operating Budget. The required years for monitoring for the Fidalgo Bay site are 2012, 2013 & 2017. The required years for monitoring for the “O” Avenue site are 2012, 2014 & 2016.

Revenues: Rentals $ 1,440,167


Expenses: Wages & Benefits 58,449

Operations & Maintenance 252,943 G&A Allocation 109,530 Depreciation 253,234

Total Operating Expenses 674,156

Net Income $ 766,011

Image: Puget Sound Rope Building Concept Drawing (Underwood & Associates, LLC.)

16

22001122 CCoommbbiinneedd OOppeerraattiinngg BBuuddggeett

2012 Combined Operating Budget

Airport

Cap Sante Boat Haven

Marine Terminal Properties G&A Non-Op Totals

OPERATING REVENUES

Handling $ - $ - $ 2,463,100 $ - $ - $ - $ 2,463,100

Terminal Services - - 2,457,450 - - - 2,457,450 Moorage - 3,522,200 - - - - 3,522,200 Fuel - 2,430,750 - - - - 2,430,750 T Hangars 105,000 - - - - - 105,000 Property Rentals 159,000 - - 1,440,167 - - 1,599,167 Other 11,300 463,800 658,270 - - - 1,133,370

TOTAL OPERATING REVENUES 275,300 6,416,750 5,578,820 1,440,167 - - 13,711,037

OPERATING EXPENSES

Wages and Benefits - 715,359 - 58,449 1,817,657 - 2,591,465

Operations 184,056 3,389,051 3,249,205 252,943 882,829 - 7,958,084 Depreciation 372,698 869,656 697,058 253,234 57,548 - 2,250,194

SUBTOTAL 556,754 4,974,066 3,946,263 564,626 2,758,034 - 12,799,743

General & Administrative Allocations 64,670 1,442,189 1,141,645 109,530 (2,758,034) - -

NET OPERATING INCOME (LOSS) $ (346,124) $ 495 $ 490,912 $ 766,011 $ - $ - $ 911,294

17

22001122 CCoommbbiinneedd OOppeerraattiinngg BBuuddggeett ((ccoonnttiinnuueedd))

Airport

Cap Sante Boat Haven

Marine Terminal Properties G&A Non-Op Totals

CAPITAL GRANTS $ - $ 367,500 $ 575,000 $ - $ - $ - $ 942,500

NON-OPERATING Revenues - - - - - 681,962 681,962

Expenses - - - - - (749,253) (749,253)

NET NON-OPERATING - - - - - (67,291) (67,291)

ENVIRONMENTAL ACTIVITY Grants and Recoveries - - - - - 483,050 483,050

Expenses - - - - - (1,184,024) (1,184,024)

NET ENVIRONMENTAL ACTIVITY - - - - - (700,974) (700,974)

TOTAL NET INCOME(LOSS) $ (346,124) $ 367,995 $ 1,065,912 $ 766,011 $ - $ (768,265) $ 1,085,529

Photo: E & F Dock Replacement Progress (Photo by Steve Berentson)

18

CCaappiittaall IImmpprroovveemmeenntt PPllaann OOvveerrvviieeww

Overview The 2012 Capital Improvement Plan (CIP) is the result of a planning process conducted by Port staff and Commissioners throughout much of 2011. The process involved identifying all potential projects, some from a list of previously unfunded or backlogged projects, some new, and several ongoing projects. Many of the projects on the list originated from the Port’s 2000 Comprehensive Plan. A formal project inventory was developed that described each project and also included information such as a budget worksheet and estimated cost, funding source (including grant funding), required permits, and potential impacts to the environment and the community. Port Commissioners evaluated and ranked the potential projects, prioritizing those that could be funded and best met the Port’s mission statement. The resulting Project Inventory notebook has become a valuable resource tool for both Commissioners and staff alike. Projects in the CIP have been categorized as follows:

• Economic Development • Community Development • Health and Safety • Facility Maintenance and Repair

The 2012 CIP focuses on renewal of the Port’s older facilities and building systems. Over 140 slips in the Cap Sante Boat Haven will be vastly improved with the long awaited replacement of 1960’s vintage E & F Docks. This $6.5 million capital project will replace dilapidated creosoted wood piles and floats with a state of the art concrete monolithic and steel pile system. The Harbormaster’s office complex will receive a new energy efficient heating, ventilating and air conditioning system to replace the 20-year old system still in operation. The Port’s Transit Shed complex will receive some new pile supports, as well as a fire protection system in the common area. The Port administrative offices will receive a new energy efficient heating and ventilating system, as well as some interior office space upgrades. The 1960’s vintage longshore workers building at Pier 2 will be replaced and relocated, which will make way for future cargoes. At the Anacortes Airport, the Port will begin a 2-year process to update the Airport’s 1994 Master Plan.

19

CCIIPP GGlloossssaarryy ooff TTeerrmmss

CIP Glossary of Terms

PORT FUNDING SOURCES • Property Sales Proceeds Fund

Cash fund which is an accumulation of proceeds from the sale of surplus Port properties. The Port Commission has restricted the use of this fund to projects that meet the criteria of property acquisition and/or industrial development.

• General Fund Non-restricted cash fund derived from Retained Earnings.

• Tax Fund Cash fund that 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 amenities, as established by the Port Commission.

• Environmental Fund Cash fund that is an accumulation of environmental cost recovery actions. The uses of this fund are focused on analytical investigations and clean up actions. Property acquisition for the purpose of environmental cleanup is eligible for this funding source.

• Construction Fund Cash fund that is funded primarily from the General Fund for construction projects.

GRANT/OTHER FUNDING SOURCES • ARRA

The American Recovery and Reinvestment Act of 2009

• BIG Boating Infrastructure Grant

20

22001122 CCIIPP CCoonnssoolliiddaatteedd SSuummmmaarryy

CIP Consolidated Summary

Number of

Projects Cost Center 2011 Carry

Forward 2012 Project

Budget

TOTAL FUNDING FOR NEW PROJECTS

PORT GRANTS

Source Dollars Source Dollars

1 Airport $ 0 $ 40,000 - - - $ 40,000 - - - $ 0

5 Cap Sante Boat Haven 1,320,000 365,000 - - - 365,000 - - - 0

7 Marine Terminal 575,000 915,000 - - - 915,000 - - - 0

0 Property Rentals 0 0 - - - 0 - - - 0

1 Port Wide 0 480,000 - - - 120,000 - - - 360,000

14 Total Dollars for All Projects $ 1,895,000 $ 1,800,000

- - - $ 1,440,000

- - - $ 360,000

21

22001122 AAiirrppoorrtt CCIIPP

2012 CIP

Project Number Project Title Project Type 2011 Carry


Budget


PORT GRANTS


ARP-21 Airport Master Plan Regulatory $ 0 $ 40,000 General Fund $ 40,000 - - - $ 0

Total Dollars for Airport Projects $ 0 $ 40,000

- - - $ 40,000

- - - $ 0

Photo: Anacortes Airport

22

22001122 CCaapp SSaannttee BBooaatt HHaavveenn CCIIPP



Budget


PORT GRANTS


CSBH-08d E&F Replacement, Construction Facility M&R $1,320,000 $ 0 - - - $ 0 - - - $ 0

CSBH-05 North Breakwater Replacement (Scoping)

Facility M&R 0 20,000 Tax Fund 20,000 - - - 0

CSBH-22 West Basin Building HVAC Replacement Facility M&R 0 275,000

General Fund 275,000 - - - 0

0

CSBH-27 A Dock Access Ramp (Scoping) Facility M&R 0 20,000 Tax Fund 20,000 - - - 0

0

CSBH-28 M,N,O Dock Maintenance Dredging (Scoping)

Facility M&R 0 50,000 General

Fund 50,000 - - - 0

Total Dollars for Cap Sante Boat Haven $1,320,000 $ 365,000

- - - $ 365,000

- - - $ 0

23

22001122 MMaarriinnee TTeerrmmiinnaall CCIIPP



Budget


PORT GRANTS


MRT-13 Pier 2 Security Improvements Regulatory $ 575,000 $ 0 - - - $ 0 - - - $ 0

MRT-04 MPO Fire Suppression System Health & Safety 0 200,000

General Fund 200,000 - - - 0

MRT-16 Pier I Replacement (Scoping) Facility M&R 0 25,000 Tax Fund 25,000 - - - 0

MRT-08 MPO Pile Replacement Facility M&R 0 50,000 Tax Fund 50,000 - - - 0

MRT-18 MPO Remodel - Scoping and Design Facility M&R 0 200,000

General Fund 200,000 - - - 0

MRT-02 Cathodic Protection for Dolphins Facility M&R 0 255,000

General Fund 255,000 - - - 0

MRT-20 Longshore Building Replacement Facility M&R 0 185,000

General Fund 185,000 - - - 0

Total Dollars for Marine Terminal Projects $ 575,000 $ 915,000

- - - $ 915,000

- - - $ 0

24

22001122 PPrrooppeerrttyy RReennttaallss CCIIPP



Budget


PORT GRANTS


$ 0 $ 0 - - - $ 0 - - - $ 0

Total Dollars for Property Rentals Projects $ 0 $ 0

- - - $ 0 - - - $ 0

Photo: Seafarers’ Memorial Park Improvements (Photo by Steve Berentson)

25

22001122 PPoorrtt WWiiddee CCIIPP



Budget


PORT GRANTS


GEN-09 Port Security Improvements Health & Safety $ 0 $ 480,000

General Fund $ 120,000 Homeland

Security $ 360,000

Total Dollars for Port Wide Projects $ 0 $ 480,000

- - - $ 120,000

- - - $ 360,000

26

22001122 CCaappiittaall PPuurrcchhaasseess

2012 Capital Purchases

Asset Scheduled Use Amount

Operations Shed Facility M&R $ 15,000

Stage Transit Shed Events 5,000

Bobcat Facility M&R 34,000

Hydraulic Lift Facility M&R 10,000

Portable Gen-Set Safety & Welfare/Events 99,544

Vactron Regulatory 100,000

Total Dollars for Capital Purchases $ 263,544

The Port of Anacortes capitalizes all asset purchases over $5,000 with a useful life of greater than one year.

27

CCaasshh FFllooww PPrroojjeeccttiioonn:: DDeeffiinniittiioonnss && AAssssuummppttiioonnss

Definitions & Assumptions

Sources & Uses of Cash Net Operating Income: Net Operating Income is the results of operations from the Port’s operating units: Airport, Cap Sante Boat Haven, Marine Terminal, and Property Rentals. In general these operating units 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. Net Increases are conservatively estimated to increase at 1% per year.

Tax Levy: The 2012 budget represents a tax levy of $530,000. The same amount is projected for all future years.

Other Non-Operating: Includes late fee charges on customer accounts, leasehold excise tax receipts and election costs. A constant level is assumed for these items.

Interest Earned on Investments: Interest income is budgeted conservatively for 2012, as it is the Port’s expectation to use available General, Construction, and Environmental Fund cash balances towards our 2012 budgeted capital and environmental projects. Estimated interest earnings in future years were calculated based upon estimated average investment balances, using a rate of .3% in year one, .5% in year two, 1% in year three, 2% in year four, and rising to 3% in year five.

Capitalized & Reclassified Wages : The costs of employees’ wages, payroll taxes and benefits that are capitalized as project costs are estimated to increase 5% per year, the effect of salary grade implements, COLA adjustments and benefits cost increases.

Environmental Expenses: These costs are for activities the Port has undertaken that currently will not generate any revenues. The Port is currently teaming with the Washington State Department of Ecology on “Focus Fidalgo” which includes clean-up of five sites in the Port District over the next few years.

Debt Service on Revenue Bonds: Principal and interest payments for 2012-2016 are amounts due for outstanding issues. All debt service is paid out of cash generated from operations.

Capital Expenditures: Investments in the Capital Improvement Plan are financed with either cash reserves or cash generated from operations as well as financed capital projects.

28

CCaasshh FFllooww PPrroojjeeccttiioonnss 22001122--22001166

Cash Flow Projections 2010-2014

Totals General

Construction Fund

Property Sales Environmental

Property Taxes GO Bonds Debt Service Bond Reserve

2012 Beginning Cash/Investment Balance $ 12,449,016 $ 3,492,061 $ 3,033,366 $ 1,841,933 $ 993,884 $ 1,767,834 $ 97,292 $ 396,968 $ 825,678

Estimated Cash from Operations 3,199,559 3,199,559 - - - - - - - Capitalized & Reclassified Wages (237,918) (237,918) - - - - - - - Tax Levy 530,000 - - - - 530,000 - - - Interfund Loans

Fuel Dock - (258,026) - 258,026 - - - - - Anthony's Parking Lot - (22,600) - - - 22,600 - - - Stormwater - (786,000) - 786,000 - - - - -

Environmental Projects & Mitigation Former Shell Tank Farm Cleanup Project (250,000) - - - (250,000) - - - -

Dakota Creek Shipyard Cleanup Project (110,000) - - - (110,000) - - - - Wymans (590,000) - - - (590,000) - - - - East Pier 2 (40,000) - - - (40,000) - - - -

Environmental Recoveries 305,000 - - - 305,000 - - - -

Interest Income 28,248 10,476 - 5,526 2,982 5,304 292 3,668 - Fund Transfers - (2,705,773) 850,000 - - - 511,263 1,344,510 - Debt Service (1,859,733) - - - - - (511,555) (1,348,178) - Grants

Homeland Security - Pier ll 551,500 551,500 - - - - - - - Homeland Security - CSBH 367,500 367,500 - - - - - - - BIG Grant - E&F 507,000 507,000 - - - - - - -

Total Grants 1,426,000 1,426,000 - - - - - - -

Operating Reserve (2,705,962) (2,705,962) - - - - - - - Cash Available for Capital Expenditures $ 12,144,210 $ 1,411,817 $ 3,883,366 $ 2,891,485 $ 311,866 $ 2,325,738 $ 97,292 $ 396,968 $ 825,678

2012 Comp. Plan Expenditures E&F Construction (1,268,500) - (1,268,500) - - - - - -

Homeland Security - Pier ll (539,500) (539,500) - - - - - - - Homeland Security - CSBH (485,000) (485,000) - - - - - - - Puget Sound Rope Office (21,000) - - (21,000) - - - - - New Projects (1,800,000) - (1,685,000) - - (115,000) - - -

Capital Purchases (263,544) (263,544) - - - - - - -

2012 Comp. Plan Expenditures (4,377,544) (1,288,044) (2,953,500) (21,000) - (115,000) - - -

Ending Cash Balance $ 7,766,666 $ 123,773 $ 929,866 $ 2,870,485 $ 311,866 $ 2,210,738 $ 97,292 $ 396,968 $ 825,678

29

CCaasshh FFllooww PPrroojjeeccttiioonnss 22001122--22001166 ((ccoonnttiinnuueedd))

Totals General

Construction Fund



2013

Beginning Cash/Investment Balance $ 7,766,666 $ 123,773 $ 929,866 $ 2,870,485 $ 311,866 $ 2,210,738 $ 97,292 $ 396,968 $ 825,678

Estimated Cash from Operations 3,231,555 3,231,555 - - - - - - -

Capitalized & Reclassified Wages (249,814) (249,814) - - - - - - -

Tax Levy 530,000 - - - - 530,000 - - -

Interfund Loans

Anthony's Parking Lot - (22,600) - - - 22,600 - - -

Environmental Projects & Mitigation

Former Shell Tank Farm Cleanup Project (1,512,000) - - - (1,512,000) - - - -

Dakota Creek Shipyard Cleanup Project (310,000) - - - (310,000) - - - -

Wymans (450,000) - - - (450,000) - - - -

Environmental Recoveries 1,667,000 - - - 1,667,000 - - - -

Other Non-Operating (exc. Interest) 20,000 20,000 - - - - - - -

Interest Income 52,357 14,144 4,649 14,352 1,559 11,054 486 6,113 -

Fund Transfers - (3,116,646) 970,000 - 291,575 - 511,069 1,344,002 -

Debt Service (1,861,670) - - - - - (511,555) (1,350,115) -

Cash Available for Comp. Plan Exp. $ 8,884,094 $ 412 $ 1,904,515 $ 2,884,837 $ - $ 2,774,392 $ 97,292 $ 396,968 $ 825,678

2013 Comp. Plan Expenditures

Port-wide (1,800,000) - (1,200,000) - - (600,000) - - -

2013 Comp. Plan Expenditures (1,800,000) - (1,200,000) - - (600,000) - - -

Ending Cash Available $ 7,084,094 $ 412 $ 704,515 $ 2,884,837 $ - $ 2,174,392 $ 97,292 $ 396,968 $ 825,678

30


Totals General

Construction Fund



2014

Beginning Cash Available $ 7,084,094 $ 412 $ 704,515 $ 2,884,837 $ - $ 2,174,392 $ 97,292 $ 396,968 $ 825,678



Tax Levy 530,000 - - - - 530,000 - - -

Interfund Loans


Environmental Projects

Dakota Creek Shipyard Cleanup Project (1,992,506) - - - (1,992,506) - - - -

Former Pier 2 Log Haul Out Cleanup Project (320,000) - - - (320,000) - - - -

Project Pier 1 Mitigation at Wyman’s (25,000) - - - (25,000) - - - -

Environmental Recoveries 1,156,253 - - - 1,156,253 - - - -


Interest Income 97,890 27,054 7,045 28,848 - 21,744 973 12,226 -

Fund Transfers - (3,026,374) - - 1,181,253 - 510,582 1,334,539 -

Debt Service (1,858,320) - - - - - (511,555) (1,346,765) -

Cash Available for Comp. Plan Exp. $ 7,693,977 $ 59 $ 711,560 $ 2,913,685 $ - $ 2,748,736 $ 97,292 $ 396,968 $ 825,678


Port-wide (1,310,000) - (710,000) - - (600,000) - - -

2014 Comp. Plan Expenditures (1,310,000) - (710,000) - - (600,000) - - -

Ending Cash Available $ 6,383,977 $ 59 $ 1,560 $ 2,913,685 $ - $ 2,148,736 $ 97,292 $ 396,968 $ 825,678

31


Totals General

Construction Fund



2015

Beginning Cash Available $ 6,383,977 $ 59 $ 1,560 $ 2,913,685 $ - $ 2,148,736 $ 97,292 $ 396,968 $ 825,678



Tax Levy 530,000 - - - - 530,000 - - -

Interfund Loans






Project Pier 1 Mitigation at East Pier 2 (250,000) - - - (250,000) - - - -



Interest Income 181,780 54,101 31 58,274 - 42,975 1,946 24,453 -

Fund Transfers - (3,064,871) 550,000 - 678,125 - 774,609 1,062,137 -

Debt Service (1,863,145) - - - - - (776,555) (1,086,590) -

Cash Available for Comp. Plan Exp. $ 7,595,578 $ 7,779 $ 551,591 $ 2,971,959 $ - $ 2,744,311 $ 97,292 $ 396,968 $ 825,678


Port Wide (1,150,000) - (550,000) - - (600,000) - - -

2015 Comp. Plan Expenditures (1,150,000) - (550,000) - - (600,000) - - -

Ending Cash Available $ 6,445,578 $ 7,779 $ 1,591 $ 2,971,959 $ - $ 2,144,311 $ 97,292 $ 396,968 $ 825,678

32


Totals General

Construction Fund



2016

Beginning Cash Available $ 6,445,578 $ 7,779 $ 1,591 $ 2,971,959 $ - $ 2,144,311 $ 97,292 $ 396,968 $ 825,678



Tax Levy 530,000 - - - - 530,000 - - -

Interfund Loans






Project Pier 1 Mitigation at East Pier 2 (150,000) - - - (150,000) - - - -



Interest Income 274,469 81,383 - 89,159 - 64,329 2,919 36,679 -

Fund Transfers - (2,215,826) 1,200,000 - 422,125 - 1,495,686 (76,307) (825,678)

Debt Service (1,855,945) - - - - - (1,498,605) (357,340) -

Cash Available for Comp. Plan Exp. $ 8,032,261 $ 911,020 $ 1,201,591 $ 3,061,118 $ - $ 2,761,240 $ 97,292 $ - $ -


Port Wide (1,800,000) - (1,200,000) - - (600,000) - - -

2016 Comp. Plan Expenditures (1,800,000) - (1,200,000) - - (600,000) - - -

Ending Cash Available $ 6,232,261 $ 911,020 $ 1,591 $ 3,061,118 $ - $ 2,161,240 $ 97,292 $ - $ -

33

22001122 TTaaxx aatt aa GGllaannccee

2012 Tax at a Glance Total proposed general levy rate for 2012 is $530,000. The total assessed value for the Port District was not available from Skagit County prior to publication of the preliminary Budget. The Tax Fund monies will be used for new projects selected by the Port Commission. The proposed general levy is significantly below the maximum allowable general levy. The statutory maximum dollar rate by State law for the taxing district is $0.45.

34

22001122 TTaaxx LLeevvyy

2012 Tax Levy

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 twelve years only, not to exceed $0.45 per $1,000 of Assessed Value of taxable property within the Port District. If a Port District intends to levy this tax for one or more years after the first six years, 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 public access improvements, 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 2012 budget allows the available tax monies to be utilized for new projects authorized by the Port Commission.

35

22001111 PPoorrtt DDiissttrriicctt PPrrooppeerrttyy TTaaxx DDiissttrriibbuuttiioonn**

District Property Tax Distribution

*Levy rate per $1,000 of assessed value of taxable property within the Port District.

36

22001111 CCllaassss AA PPoorrtt TTaaxx LLeevvyy CCoommppaarriissoonnss

2011 Class A Port Tax Levy Comparisons

37

22001122 BBuuddggeett:: CCoommbbiinneedd SSuupppplleemmeennttaall CCoommppaarriissoonnss wwiitthh 22001122 BBuuddggeett,, 22001111 BBuuddggeett,, && 22001100 AAccttuuaall

2012 Budget – Supplemental Comparisons

Budget

Budget

Actual (Unaudited)

2012 2011 2010

OPERATING REVENUES Marine Terminal $ 5,578,820

$ 3,961,600

$ 2,490,939

Cap Sante Boat Haven 6,416,750

5,813,584

6,055,949 Airport 275,300

271,000

275,412

Properties 1,440,167

1,405,429

1,476,519 TOTAL OPERATING REVENUES 13,711,037

11,451,613

10,298,819

OPERATING EXPENSES Marine Terminal 5,087,908

3,748,885

2,749,308

Cap Sante Boat Haven 6,416,255

5,707,655

5,681,877 Airport 621,424

607,221

594,581

Properties 674,156

521,099

445,060 TOTAL OPERATING EXPENSES 12,799,743

10,584,860

9,470,826

NET OPERATING INCOME BEFORE GRANTS 911,294

866,753

827,993

Operating Grants - All Departments -

-

1,062,601 Operating Grant Expenses -

-

(1,125,970)

NET OPERATING GRANT -

-

(63,369)

NET OPERATING INCOME 911,294

866,753

764,624

Non-Operating Revenues 681,962

582,000

615,836 Non-Operating Expenses (749,253)

(769,524)

(590,969)

NET NON-OPERATING (67,291)

(187,524)

24,867

Capital Grants - All Departments 942,500

2,515,000

300,352 NET INCOME BEFORE ENVIRONMENTAL 1,786,503

3,194,229

1,089,843

ENVIRONMENTAL ACTIVITY Environmental Grants & Recoveries 483,050

2,791,818

22,367,053

Environmental Expenses (1,518,049)

(3,239,318)

(22,051,604) GASB 49 Costs Previously Accrued 334,025

1,169,195

1,685,057

NET ENVIRONMENTAL ACTIVITY (700,974)

721,695

2,000,506

NET INCOME $ 1,085,529

$ 3,915,924

$ 3,090,349

38

22001122 BBuuddggeett:: AAiirrppoorrtt SSuupppplleemmeennttaall CCoommppaarriissoonnss wwiitthh 22001122 BBuuddggeett,, 22001111 BBuuddggeett,, && 22001100 AAccttuuaall

Budget

Budget

Actual (Unaudited)

2012 2011 2010

OPERATING REVENUES Tie-Downs - Monthly $ 1,800

$ 2,000

$ 1,868

Tie-Downs - Daily 1,000

1,000

916 Airport Building Rent 159,000

150,000

156,585

T Hangar Rent 105,000

105,000

106,845 Parking 5,000

10,000

5,796

Fuel Flowage Fee 3,500

3,000

3,401 Total Operating Revenues 275,300

271,000

275,411

OPERATING EXPENSES FBO Services 500

500

473

Water/Sewer/Garbage 5,000

5,600

4,761 Power 14,000

13,000

14,066

Storm Drainage 7,000

6,900

7,061 Stormwater Compliance 2,000

3,750

1,431

Operating Supplies 1,500

1,000

1,050 Facility Repair and Maintenance 35,250

24,700

17,723

Equipment Repair & Maintenance 3,250

3,550

1,124 Office Supplies 100

100

199

Safety 750

-

642 Legal Services 300

-

(624)

Other Outside Services 5,250

300

1,670 Environmental Services 100

100

-

Telephone 1,800

1,200

1,600 Travel & Other Business Expenses 1,500

500

305

Training 150

100

- Promotional Hosting 50

50

-

Marketing/Advertising 2,500

200

3,034 Membership Dues/Publications 300

100

70

Insurance 17,916

16,287

16,350 Business Taxes 105

120

104

Miscellaneous -

500

- Operations Payroll 50,397

-

-

Operations Allocation 34,338

83,296

65,621 Total Operating Expenses 184,056

161,853

136,660

Net Income before Depreciation and G&A Allocation $ 91,244

$ 109,147

$ 138,751

39

22001122 BBuuddggeett:: AAiirrppoorrtt SSuupppplleemmeennttaall CCoommppaarriissoonnss wwiitthh 22001122 BBuuddggeett,, 22001111 BBuuddggeett,, && 22001100 AAccttuuaall

Budget

Budget

Actual (Unaudited)

2012 2011 2010

Depreciation $ 372,698

$ 388,530

$ 397,731 General & Admin Allocation 64,670

56,838

60,189

Total Depreciation and G&A Allocations 437,368

445,368

457,920

NET OPERATING LOSS ($346,124)

($336,221)

($319,169)

Capital Grant -

-

154,352

NET INCOME/(LOSS) $ (346,124)

$ (336,221)

$ (164,817)

40

22001122 BBuuddggeett:: CCaapp SSaannttee BBooaatt HHaavveenn SSuupppplleemmeennttaall CCoommppaarriissoonnss wwiitthh 22001122 BBuuddggeett,, 22001111 BBuuddggeett,, && 22001100 AAccttuuaall

Budget

Budget

Actual (Unaudited)

2012 2011 2010

OPERATING REVENUES Moorage $ 3,522,200

$ 3,295,014

$ 3,341,177

Misc Revenues 66,800

62,600

65,253 Electricity Sales 225,000

214,770

192,501

Park Revenues 9,000

3,800

- Boat Launch 70,500

70,000

70,439

Outside Storage 8,000

7,900

6,342 Web Locker Rent 52,000

52,000

51,891

Parking 32,500

32,500

27,949 Fuel Flowage Fee 4,500

3,000

4,572

Fuel Dock 2,426,250

2,072,000

2,295,825 Total Operating Revenues 6,416,750

5,813,584

6,055,949

OPERATING EXPENSES Wages 484,045

477,677

448,390

Payroll Taxes 53,245

52,543

42,376 Employee Benefits 176,069

150,111

108,922

Hiring Expense 2,000

1,500

1,473 Total Salary Related Expenses 715,359

681,831

601,161


90,700

94,728 Power 205,321

210,760

200,828


3,443

3,510 Facility Repairs and Maintenance 174,036

136,500

112,556

Equipment Repairs & Maintenance 19,554

20,400

15,737 Equipment Fuel 1,222

100

562

Damage Claims 1,943

3,000

413 Operating & Other Supplies 51,918

42,516

37,600

Fuel Dock Fuel 2,053,217

1,798,000

2,011,373 Bank Card Fees 92,884

87,500

92,493

Cash (Over) Short -

-

(47) Computer Expense & Office Supplies 16,621

31,175

12,526

Laundry 1,173

2,000

835 Safety 3,422

3,500

3,545

Legal Services 2,444

3,830

1,545 Other Outside Services 6,023

5,000

17,858

Environmental Services 3,422

14,100

8,458 Telephone 11,732

12,450

11,097

Travel & Other Business Expenses 4,889

4,200

3,123 Training 4,889

6,500

4,646

41

22001122 BBuuddggeett:: CCaapp SSaannttee BBooaatt HHaavveenn SSuupppplleemmeennttaall CCoommppaarriissoonnss wwiitthh 22001122 BBuuddggeett,, 22001111 BBuuddggeett,, && 22001100 AAccttuuaall

Budget

Budget

Actual (Unaudited)

2012 2011 2010

OPERATING EXPENSES (continued) Promotional Hosting $ -

$ 100

$ -

Marketing/Advertising 17,599

31,600

16,891 Membership Dues/Publications 1,369

1,500

1,390

Insurance 102,172

96,034

97,780 Bad Debts 24,443

4,000

75,000

Automobile Repair & Maintenance 3,666

1,500

1,266 Automobile Fuel 1,173

-

217

Lease Payments 10,755

7,900

9,561 Business Taxes 28,312

26,443

26,600

Operations Payroll 259,540

-

- Operations Allocation 189,007

431,625

385,043

Total Operating Expense 4,104,410

3,758,207

3,848,295

Net Income before Depreciation and G&A Allocation 2,312,340

2,055,377

2,207,654

Depreciation 869,656

629,682

634,989 General & Admin Allocation 1,442,189

1,319,766

1,198,593

Total Depreciation and G&A Allocations 2,311,845

1,949,448

1,833,582

NET OPERATING INCOME 495

105,929

374,072

Operating Grant -

-

4,069

NET OPERATING GRANT EXPENSES -

-

4,069


1,500,000

-

NET INCOME $ 367,995

$ 1,605,929

$ 378,141

42

22001122 BBuuddggeett:: MMaarriinnee TTeerrmmiinnaall SSuupppplleemmeennttaall CCoommppaarriissoonnss wwiitthh 22001122 BBuuddggeett,, 22001111 BBuuddggeett,, && 22001100 AAccttuuaall

Budget

Budget

Actual (Unaudited)

2012 2011 2010

OPERATING REVENUES Dockage $ 649,750

$ 393,600

$ 417,660

Wharfage 869,000

602,100

341,220 Service & Facilities 868,000

610,000

347,997

Handling 2,463,100

1,974,000

1,110,170 Line Handling 70,700

40,000

54,114

Leases-Ground 99,800

123,000

115,986 Environmental Fee 450,000

180,000

-

Storage 45,000

200

47,557 Miscellaneous Revenues 63,450

38,100

55,873

Fuel Flowage Fee 20

600

362 Total Operating Revenues 5,578,820

3,961,600

2,490,939

OPERATING EXPENSES Longshore/Stevedoring 2,572,045

1,851,100

1,243,397


16,720

12,450 Power 22,000

21,000

13,599


31,000

31,713 Stormwater Compliance -

32,755

48,590

Facilities Repairs & Maintenance 29,950

15,750

15,494 Equipment Repairs & Maintenance 11,000

14,126

2,135

Equipment Fuel -

125

- Operating & Shop Supplies -

200

(641)

Office Supplies 520

-

35 Safety 1,000

100

605


2,200


1,650

3,650


140,350

6,340 Telephone 600

600

601

Travel 5,000

2,500

- Training 1,500

400

600

Promotional Hosting 1,500

1,000

- Marketing/Advertising 400

1,200

381

Membership Dues/Publications 1,110

1,000

989 Insurance 71,500

62,721

64,392

Bad Debts 5,000

5,000

20,000 Automobile -

200

76

Business Taxes 15,998

11,326

17,955 Operations Payroll 79,990

-

-


143,875

109,922 Total Operating Expenses $ 3,249,205

$ 2,356,898

$ 1,638,192

43

22001122 BBuuddggeett:: MMaarriinnee TTeerrmmiinnaall SSuupppplleemmeennttaall CCoommppaarriissoonnss wwiitthh 22001122 BBuuddggeett,, 22001111 BBuuddggeett,, && 22001100 AAccttuuaall

Budget

Budget

Actual (Unaudited)

2012 2011 2010

Net Income before Depreciation and G&A $ 2,329,615

$ 1,604,702

$ 852,747


564,317

551,104 General & Administrative Allocation 1,141,646

827,670

560,010

Total Depreciation and G&A Allocations 1,838,704

1,391,987

1,111,114

NET OPERATING INCOME 490,911

212,715

(258,367)


1,015,000

-

NET INCOME/(LOSS) $ 1,065,911

$ 1,227,715

$ (258,367)

44

22001122 BBuuddggeett:: PPrrooppeerrttyy RReennttaallss SSuupppplleemmeennttaall CCoommppaarriissoonnss wwiitthh 22001122 BBuuddggeett,, 22001111 BBuuddggeett,, && 22001100 AAccttuuaall

Budget

Budget

Actual (Unaudited)

2012 2011 2010

OPERATING REVENUES Property Rents $ 1,407,667

$ 1,381,429

$ 1,383,890

Property Rents-Ground Leases 22,500

17,000

21,450 Miscellaneous Revenues 10,000

7,000

71,179


1,405,429

1,476,519

OPERATING EXPENSES Wages 49,428

45,414

47,743

Payroll Taxes 5,437

4,996


3,022

2,535

Total Salary Related Expenses 58,449

53,432

54,065

Water/Sewer/Garbage -

900

- Power 15,351

17,507

9,606

Facility Repairs and Maintenance 24,700

27,550

20,422 Equipment and Office Supplies 4,800

2,500

784

Safety -

-

369

20,000

24,500

12,721


28,000


100,000

46,610

Environmental Services 500

500

- Telephone 250

250

50

Travel & Other Business Expenses 500

500

223 Training 3,500

3,000

1,323


18,057

18,991 Marketing/Advertising 452

340

1,538

Insurance 24,130

-

- Business Taxes 11,111

-

-


30,289

37,199 Total Operating Expenses before Depreciation 311,392

307,325

255,262

Net Income before Depreciation and G&A Allocations 1,128,775

1,098,104

1,221,257


105,851

103,320 General & Administrative Allocation 109,530

107,923

86,477

Total Depreciation and G&A Allocations 362,764

213,774

189,797

NET OPERATING INCOME $ 766,011

$ 884,330

$ 1,031,460

45

22001122 BBuuddggeett:: PPrrooppeerrttyy RReennttaallss SSuupppplleemmeennttaall CCoommppaarriissoonnss wwiitthh 22001122 BBuuddggeett,, 22001111 BBuuddggeett,, && 22001100 AAccttuuaall

Budget

Budget

Actual (Unaudited)

2012 2011 2010

Operating Grant $ -

$ -

$ 1,058,533 Operating Grant Expenses -

-

(1,125,970)

NET OPERATING GRANT INCOME -

-

(67,437)

Capital Grant -

-

146,000

NET INCOME $ 766,011

$ 884,330

$ 1,110,023

46

22001122 BBuuddggeett:: GGeenneerraall && AAddmmiinniissttrraattiivvee SSuupppplleemmeennttaall CCoommppaarriissoonnss wwiitthh 22001122 BBuuddggeett,, 22001111 BBuuddggeett,, && 22001100 AAccttuuaall

Budget

Budget

Actual (Unaudited)

2012 2011 2010

OPERATING EXPENSES Commission Wages $ 49,440

$ 49,440

$ 36,960

Administrative Wages 1,338,130

1,418,217

1,302,227 Reclassified Labor (230,418)

(485,717)

(518,340)


161,443


441,153

380,801


1,500

518 Total Payroll Related Expenses 1,817,657

1,586,036

1,322,722

Office Supplies 43,250

36,650

41,304 Safety/Medical Supplies 5,500

2,300

3,388


2,500

3,242 Stormwater Compliance 15,500

-

17,240

Power 20,750

15,600

18,465 R&M-Office Facility 40,000

32,500

5,529

Computer Supplies & Services 104,322

83,650

55,717 Laundry 1,250

1,200

970


24,000


133,500

79,535


2,750

5,195 Telephone 23,500

19,100

19,326

Travel & Other Business Expenses 23,800

19,500

19,596 Training 57,600

42,900

14,730


4,000

1,250 Marketing/Advertising 51,000

57,500

50,499

Membership Dues 27,500

29,160

28,505 Publications 200

100

260

Insurance 38,788

36,367

35,262 Audit 30,000

30,000

18,875

Automobile 4,000

5,500

2,556 Lease Payments 3,000

24,500

(16,025)

Business Taxes 400

-

370 Miscellaneous Expenses 1,000

50

-

Operations Payroll 58,849

-

3,877 Operations Allocation 46,120

68,151

60,817

Total General & Administrative before Depreciation 2,700,486

2,257,514

1,810,648

Depreciation 57,548

54,683

94,621

TOTAL GENERAL & ADMINISTRATIVE EXPENSES $ 2,758,034

$ 2,312,197

$ 1,905,269

47

22001122 BBuuddggeett:: OOppeerraattiioonnss SSuupppplleemmeennttaall CCoommppaarriissoonnss wwiitthh 22001122 BBuuddggeett,, 22001111 BBuuddggeett,, && 22001100 AAccttuuaall

Budget

Budget

Actual (Unaudited)

2012 2011 2010

OPERATING EXPENSES Wages $ 481,186

$ 444,707

$ 432,698


48,918


133,458

103,236


1,500

929 Reclassified Labor (7,500)

(13,095)

(5,613)

Total Payroll Related Expenses 709,778

615,488

579,015

Water/Sewer/Garbage -

1,750

1,801 Power -

8,000

4,853

Telephone -

5,300

6,432 R&M-Maintenance Shop -

15,000

580

R&M-Miscellaneous -

150

- R&M-Equipment 1,200

2,100

1,078

Operating Supplies 9,000

10,000

7,489 Shop Supplies 5,500

4,500

5,045

Office Supplies -

-

63 Safety/Medical Supplies 4,500

5,000

3,410

Office Facility Maintenance 500

500

- Computer Supplies 5,500

4,900

1,718

Laundry 2,500

2,500

1,491 Other Outside Services -

7,500

-

Travel & Other Business Expenses -

2,000

780 Training -

3,500

2,816

Insurance 16,500

14,830

14,003 Automobile 22,000

22,450

13,027

Business Taxes -

-

34 Total Operations before Depreciation 776,978

725,468

643,635

Depreciation 38,071

31,768

19,356

TOTAL OPERATIONS EXPENSES $ 815,049

$ 757,236

$ 662,991

48

22001122 BBuuddggeett:: NNoonn--OOppeerraattiinngg IInnccoommee && EEnnvviirroonnmmeennttaall AAccttiivviittyy SSuupppplleemmeennttaall CCoommppaarriissoonnss wwiitthh 22001122 BBuuddggeett,, 22001111 BBuuddggeett,, && 22001100 AAccttuuaall

Budget

Budget

Actual (Unaudited)

2012 2011 2010

NON-OPERATING INCOME Taxes Levied $ 530,000

$ 530,000

$ 530,000

Other Taxes 3,000

4,000

2,200 Miscellaneous Revenues 500

-

576

Interest Income 50,200

30,000

34,241 Build America Bonds Subsidy 78,012

-

9,626

Sale of Scrap and Waste -

-

11,121 Late Charges 20,000

18,000

27,469

Bad Accounts Recovered 250

-

604 Total Non-Operating Revenues 681,962

582,000

615,837

NON-OPERATING EXPENSES GO Bond Interest Expense 511,555

497,785

316,652

Revenue Bond Interest Expense 198,178

239,092

270,235 Amortized Bond Issuance Costs 25,179

28,323

23,425

Election Costs -

4,000

- Business Taxes 324

324

657

Loss on Disposal of Assets 14,017

-

(20,000) Total Non-Operating Expenses 749,253

769,524

590,969

NET NON-OPERATING INCOME (EXPENSE) ($67,291)

($187,524)

$24,868

ENVIRONMENTAL ACTIVITY Environmental Grants Received 291,525

1,507,159

10,310,586

Environmental Costs Recovered 191,525

1,284,659

12,056,467 Environmental Clean Up Costs (1,518,049)

(3,239,318)

(22,051,604)

Environmental Costs Accrued GASB 49 334,025

1,169,195

1,685,057

NET ENVIRONMENTAL ACTIVITY $ (700,974)

$ 721,695

$ 2,000,506

49

TTrreeaassuurreerr’’ss RReeppoorrtt

Treasurer’s Report NOVEMBER 3, 2011 PORT OF ANACORTES REVIEWED AND CONFIRMED THIS 3rd DAY OF NOVEMBER, 2011 BY THE COMMISSION OF THE PORT OF ANACORTES SUGGESTED MOTION: I MOVE THAT WE, THE UNDERSIGNED BOARD OF COMMISSIONERS FOR THE PORT OF ANACORTES, DO HEREBY ACCEPT THE SEPTEMBER 2011 TREASURER’S REPORT TOTALING $15,228,093.77.

This Section to be completed by Port Commission

Keith Rubin William L. Short Ray Niver Pat D. Mooney Steve Hopley

50

TTrreeaassuurreerr’’ss RReeppoorrtt

PORT OF ANACORTES The following investments and transfers were made by the Skagit County Treasurer as directed by the Port of Anacortes

Auditor or the Port of Anacortes Executive Director, pursuant to Resolution No 502, during the period September 1 - 30, 2011.

Interest earned this month on investments was

$ 1,597.09

Summary of Investments held at September 30, 2011 Non-Restricted Funds

General Fund Money received from Port operations and used for the daily operation of the Port and transferring

money to restricted debt service fund. State Pool

3,006,457.44 Construction Fund

Money in this fund is being set aside to be used for contributing to E and F Dock construction. State Pool

6,562,698.86 Environmental Remediation Fund

Money in this fund is from cash receipts related to cost recovery settlements with 3rd parties regarding environmental remediation costs and is being set aside to be used for current and future environmental remediation and clean-up costs.

State Pool

96,397.06 Property Sales Proceeds Fund

Money in this fund has been from the sale of surplus property and is restricted by Commission action to be used for the acquisition of property and industrial development.

State Pool

3,882,895.25 Tax Fund

Money in this fund is from taxes levied and is restricted by Commission action to be used for the acquisition of property and industrial development. There is no capital reserve in this fund.

State Pool

708,526.44 Total Non-Restricted Funds

$ 14,256,975.05

Restricted Funds Revenue Bond Debt Service Fund

Used for collecting funds for bond principal and interest payments due March 1st and September 1st of each year.

State Pool

105,329.74 GO Bond Debt Service Fund

Used for collecting funds for bond principal and interest payments due March 1st and September 1st of each year.

State Pool

40,110.98 Revenue Bond Reserve Fund

Money in this fund is required by bond covenant and is restricted from use until the bonds are paid in full. It can be decreased as the bonds are retired.

State Pool

825,678.00 Total Restricted Funds

$ 971,118.72

TOTAL FUNDS $ 15,228,093.77

51

SScchheedduullee ooff SSaallaarryy GGrraaddeess ffoorr FFuullll--TTiimmee PPoossiittiioonnss** EEffffeeccttiivvee JJaannuuaarryy 11,, 22001122

Schedule of Salary Grades for Full-Time Positions

Salary Grades Positions 30 29 28 27 26 25 Dir. Engineering, Dir. Finance & Admin, Dir. Operations & Facilities 24 23 22 Project Manager 3 21 20 Accounting Manager, Harbormaster, IS Administrator 19 Project Manager 2 18 17 Environmental Administrator, Operations Supervisor 16 Accountant, Asst. Harbormaster, Engineering Office Manager 15 Operations 4 14 Project Manager 1 13 12 Executive Assistant 11 Human Resources Generalist/Events Coordinator 10 Accounts Receivable Specialist, Operations 3 9 8 Operations 2, Marina Customer Service Representative 7 6 Operations 1 5 Office Assistant 4 3 2 1

52

SScchheedduullee ooff SSaallaarryy GGrraaddeess ffoorr FFuullll--TTiimmee PPoossiittiioonnss** EEffffeeccttiivvee JJaannuuaarryy 11,, 22001122

Salary Grades

Salary Steps 1 2 3 4 5 6

30 $ 122,247 $ 125,913 $ 129,690 $ 133,580 $ 137,588 $ 141,715 29 $ 116,425 $ 119,918 $ 123,515 $ 127,221 $ 131,037 $ 134,968 28 $ 110,880 $ 114,206 $ 117,633 $ 121,162 $ 124,796 $ 128,540 27 $ 105,602 $ 108,769 $ 112,032 $ 115,393 $ 118,856 $ 122,420 26 $ 100,571 $ 103,589 $ 106,697 $ 109,898 $ 113,196 $ 116,590 25 $ 95,782 $ 98,656 $ 101,615 $ 104,665 $ 107,804 $ 111,037 24 $ 91,222 $ 93,958 $ 96,777 $ 99,678 $ 102,669 $ 105,750 23 $ 86,877 $ 89,484 $ 92,168 $ 94,933 $ 97,781 $ 100,715 22 $ 82,740 $ 85,223 $ 87,780 $ 90,413 $ 93,126 $ 95,919 21 $ 78,800 $ 81,164 $ 83,599 $ 86,107 $ 88,690 $ 91,351 20 $ 75,049 $ 77,300 $ 79,620 $ 82,008 $ 84,468 $ 87,002 19 $ 71,475 $ 73,617 $ 75,828 $ 78,102 $ 80,446 $ 82,859 18 $ 68,072 $ 70,113 $ 72,217 $ 74,382 $ 76,613 $ 78,911 17 $ 64,830 $ 66,774 $ 68,778 $ 70,840 $ 72,967 $ 75,157 16 $ 61,743 $ 63,594 $ 65,501 $ 67,467 $ 69,491 $ 71,576 15 $ 58,802 $ 60,566 $ 62,383 $ 64,255 $ 66,183 $ 68,170 14 $ 56,002 $ 57,682 $ 59,414 $ 61,195 $ 63,031 $ 64,922 13 $ 53,336 $ 54,935 $ 56,583 $ 58,281 $ 60,029 $ 61,830 12 $ 50,796 $ 52,319 $ 53,890 $ 55,506 $ 57,171 $ 58,886 11 $ 48,377 $ 49,828 $ 51,322 $ 52,862 $ 54,449 $ 56,082 10 $ 46,072 $ 47,457 $ 48,878 $ 50,345 $ 51,855 $ 53,410 9 $ 43,878 $ 45,195 $ 46,552 $ 47,947 $ 49,384 $ 50,867 8 $ 41,789 $ 43,042 $ 44,334 $ 45,663 $ 47,034 $ 48,445 7 $ 39,799 $ 40,994 $ 42,223 $ 43,490 $ 44,792 $ 46,137 6 $ 37,904 $ 39,042 $ 40,212 $ 41,418 $ 42,660 $ 43,942 5 $ 36,099 $ 37,182 $ 38,298 $ 39,446 $ 40,629 $ 41,848 4 $ 34,381 $ 35,411 $ 36,475 $ 37,569 $ 38,696 $ 39,857 3 $ 32,744 $ 33,724 $ 34,736 $ 35,779 $ 36,853 $ 37,957 2 $ 31,184 $ 32,120 $ 33,083 $ 34,076 $ 35,098 $ 36,152 1 $ 29,699 $ 30,591 $ 31,508 $ 32,452 $ 33,426 $ 34,428

* 2% CPI Increase, Salary grade increments = 5% vertical, Salary step increments = 3% horizontal

2012_Final_Budget

Documents

budget process

port of anacortes

combined operating budget

port staff

port tax levy comparisons

cap sante boat haven

year old system

capital purchases