March 14, 2022

The Port of Hood River’s current financial condition is summarized in this overview of financial performance and activities for the Fiscal Year ending June 30, 2021. Two government-wide statements report the Port’s Net Position and changes from prior years, both helpful measures of the Port’s financial health. Net Position is the difference between assets and liabilities. Government-wide financial statements of the Port are divided into two categories:

Governmental funds – The Port maintains two governmental funds: the General Fund and the Bridge Repair and Replacement Fund. The General Fund records transactions related to policy making and strategic planning based on the Port’s mission and values, and support services. The Bridge Repair and Replacement fund is a Special Revenue Fund used for capital improvements, planning, inspections, repairs and replacement activity associated with the bridge, as well as debt-related activities.

Business-type funds – Business type activities are used to distinguish operating revenues and expenses from non-operating items. The Port maintains an enterprise Revenue Fund which records fees and receipts from: bridge tolls; leased property; marina boat slip and airport hangar rent; and recreational events, parking and programs.

Statement of Net Position

Net Position serves as a useful indicator of a government’s financial position especially when viewed over multiple time periods. The Port’s Net Position on June 30, 2021 was $50,242,269, representing a $3,601,050 increase over the prior year.

Table 1 depicts an increase in total assets of $1,413,128, primarily attributable to capital outlay of $2,264,345, offset by a reduction of $851,217 in current assets. Capital assets increased with the completion of the north apron at the airport amounting to $2,220,147, in the Revenue Fund. Receivables decreased by $1,092,930 due to grant reimbursements accrued last year but reimbursed in the current year, as well as tenants paying their off their lease balances.

The largest portion of the Port’s Net Position, at 77%, are invested in capital assets (e.g. bridge, land, buildings, and equipment) and reported net of accumulated depreciation less any outstanding related debt. The Port uses these capital assets to provide services to the public; thus, they do not represent resources available for future spending. A Restricted Net Position of $286,300 represents cash and investments that are legally restricted for debt service related to the marina flex lease debt and a taxable general revenue bond. Finally, the remaining $11,056,974 is unrestricted, meaning it is available for meeting the Port’s ongoing obligations. The decrease in unrestricted net position of $948,225 from last year, is attributable to the use of cash and investments for the capital projects incurred during the year.

As with the statement of Net Position, the Port reports financial activities by its two distinct fund types: Governmental and Business-type. Table 2 illustrates the Port’s total Net Position increased by increased by $3,601,050, or 7.7% compared to the prior year.

Governmental Activities – The Net Position for governmental activities increased $581,079, or 6.4% from the prior year. This increase is primarily due to higher inter-fund transfers from the enterprise fund to the governmental funds for bridge planning and reimbursements from a State of Oregon grant which funded the final environmental impact studies for bridge replacement efforts.

Financial highlights of governmental fund activities for the year include:

•          Personnel cost decreased slightly ($8,583) with less staff time dedicated to the bridge replacement planning and legislative advocacy.

•          Higher interfund transfers by $1,261,030.

•          Higher personnel and consulting costs as the Port pursued grant opportunities at the state and federal levels for the bridge project.

Business-type Activities – Business type activities generated a $3,019,971 (8%) increase in the Port’s Net Position. The financial results for this year include a $351,034 increase in toll revenues (6.6%) from the prior year. Bridge traffic showed a slight increase in travelers (8,563). Lease revenues from industrial and commercial properties decreased $107,069 (4.7%) due to deferred or waived lease payments to businesses impacted by the pandemic. Recreation revenue increased by $98,470 due to more visitors and a 31% increase in parking fees. Capital grants continued to play an integral role to the Port as $1,389,445 was received for the north apron airport project. Capital grants of $2,549,283 played an integral role to the Port with $2,513,283 related to the airport north apron development.

The Revenue Fund increased $55,720 due to capital grants, interest earnings, other sources and transfers. Federal Aviation Administration and Oregon Connect VI grants for the north apron development projects were offset by interfund transfers of $2,070,880, related primarily to replacement bridge efforts recorded in the Bridge Repair & Replacement fund. Expenditures were mostly flat with a slight increase of $76,163, primarily attributable to higher pension and OPEB expenses over the prior year.

The Port is involved in a variety of activities that contribute to the economic health and vitality of the community. The major source of funds for Port operations continues to be the toll bridge, accounting for 60% of operating revenues, excluding grants. Lease revenues and fees continue to improve diversification, with a 95% occupancy rate at year-end.

The Port receives property taxes that account for 1% of total revenues. Capital grants continue to play a vital role in how the Port develops its properties, including the airport and waterfront. The Port receives a marina operating grant from the Oregon State Marine Board. The Port continues to develop light industrial properties that may result in new tenants and jobs, while undeveloped land at the waterfront (Lot 1) will hold future opportunities.

The Port looks at its business units in the following categories: Bridge, Leased Properties, Undeveloped Property, Recreation, Marina, Airport and Economic Factors. Request for Information – A full Financial State of the Port with more detail can be found online at portofhoodriver.com. If you have questions about this report or would like additional information, please contact the Port of Hood River at info@portofhoodriver.com or (541) 386-1645.