Spring 2021 Annual Report

Financial State of the Port

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, 2020. 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, 2020 was $46,641,219, representing a $2,197,208 increase over the prior year.

Table 1 depicts an increase in total assets of $4,462,915, primarily attributable to the timing of a balloon payment of $1,834,630 deferred until July, 2020, and the refinance of that balloon debt payment of $1,860,534 that occurred before the end of the Fiscal Year. The remaining increase is due to the increase in grants receivable of $908,846 for the airport north apron project and bridge replacement environmental impact process. Capital assets decreased $24,331 from the prior year.

The largest portion of the Port’s Net Position, at 74%, 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. The Port issued a taxable general revenue bond to replace the balloon payment of an outstanding note payable deferred until July 2020. Finally, the remaining $12,005,199 is unrestricted, meaning it is available for meeting the Port’s ongoing obligations.

Statement of Activities

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 $2,197,208 or 5% compared to the prior year. 

Governmental Activities – The Net Position for governmental activities decreased $479,080 or 5% from the prior year. This decrease is primarily due to lower 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:

•          Reimbursements amounting to $1,397,655 from a $5 million legislative grant for final environmental impact studies for bridge replacement.

•          Higher interfund transfers by $1,688,822.

•          Property taxes continue to increase about 5% as projected.

•          Higher investment earnings due to higher reserves.

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

Business-type Activities – Business type activities generated a $2,676,287 (8%) increase in the Port’s total Net Position. The financial results for this year include a $570,782 decrease in toll revenues (10%) due to the COVID-19 pandemic. Bridge traffic showed a 8% decrease (334,998 travelers) over the prior year. Lease revenues from industrial and commercial properties decreased $105,196 (4%) due to deferred or waived lease payments to businesses impacted by the pandemic. Recreation revenue decreased by $10,365 due to fewer visitors and lower street parking use. Capital grants continued to play an integral role to the Port as $1,389,445 was received for the north apron airport project. The Revenue Fund increased by $2,203,292, primarily due to the increase in capital grants for airport projects. Expenditures increased by $723,864, attributable to higher operating and maintenance costs for the bridge ($331,707), as well as an increase of $123,647 for waterfront industrial property professional services related to the possible acquisition of land. 

Financial Analysis and Outlook:

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 63% of operating revenues, excluding grants. Lease revenues and fees continue to improve diversification, with a 95% occupancy rate at year-end. The Port’s purchase of Lower Mill for future industrial uses is in the final steps to shovel ready development.

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 airport improvements. 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’s Chief Financial Officer Fred Kowell at fkowell@portofhoodriver.com.

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January

The ports of Hood River and Cascade Locks held a joint session on January 30th in Cascade Locks to share information and discuss shared concerns and opportunities related to tolling, real estate development, lobbying, and economic development. The Bridge of the Gods implemented Breezeby electronic tolling earlier in the month.

A contract with Brown Roofing was ratified for siding and roof replacement of the Hood River – White Salmon Bridge Toll House.

The Airport Advisory Committee met January 23rd to discuss multiple airport improvement projects, noise issues, and T-hangar leases.

FEBRUARY

As part of the process to develop its 2021-2026 Strategic Business Plan, the Port hosted an Open House Public Meeting to receive public comment on Port operations and community priorities for the future. Over 1,000 people completed online and paper surveys distributed throughout the Hood River and White Salmon communities to give input on the Hood River waterfront, bridge, Ken Jernstedt Airfield, Hood River Marina, real estate and economic development priorities, and other Port operations.

The OneGorge Advocacy Group hosted its annual “Gorgeous Nights” in Olympia on February 5 and in Salem on February 19 in partnership with state legislators. The receptions helped raise awareness of Gorge area needs and priorities with legislators and their staff in the capitols.

Kevin Greenwood chats with Rep. Daniel Bonham at the Gorgeous Night in Salem 2020

Willamette Cultural Resources was contracted to finish the Cultural Resources Report for the bridge replacement Final Environmental Impact Statement (EIS) and Level 2 work on the one archaeological site, as well as to complete the report to ODOT/FHWA standards.

MARCH

Port Commissioner Kristi Chapman and Bridge Replacement Project Director Kevin Greenwood attended the Pacific Northwest Waterways Association’s annual Mission to Washington D.C., meeting with numerous legislators and agency representatives, including Congressman Greg Walden, regarding the effort to replace the bridge.

PNWA mission to Washington, DC

A five-year permit was granted to American Cruise Lines, Inc., by the Port for exclusive use of the north side of the Marina jetty and non-exclusive use of the gravel access road area.

The Port of Hood River announced steps to respond to the COVID-19 outbreak based on direction from the Hood River County Health Department and Oregon Health Authority. Steps included daily spray sanitization of regular contact surfaces, supply of hand sanitizer at all employee desks, the toll booth and public areas, and ordering a stockpile of sanitizer, gloves, and masks and other PPE.

APRIL

Longtime toll staff member Roger Benn retired on April 3. The Port Commission proclaimed May 14th, 2020 as Roger Benn Day to show its appreciation of nearly six years of service.

The Port Commission and Budget Committee held its Spring Planning meeting on April 7, an important step in the annual budget preparation process.

Tapani Inc. completed the first phase of work for the ConnectOregon VI project at the airport. This work consisted of installing irrigation pipe and fittings provided by Farmers Irrigation District and disconnecting existing pipes.

Airport irrigation installation

MAY

In response to the COVID-19 pandemic, the Port accelerated the planned implementation of its All-Electronic Tolling system in May, with the activation of a license plate recognition system and DMV interface for billing unpaid tolls.

JUNE

Following the implementation of proper sanitation, PPE, and workspace distancing protocols, the toll booth reopened for normal operations on June 1 after being closed since March 18th.

All large events planned at the Event Site were cancelled due to COVID-19 restrictions. The Marina Park picnic shelter was also closed.

Activity at the Ken Jernstedt Airfield continued  with a crack seal project on Air Museum Drive, pre-construction work for the North Apron Rehabilitation project, and the ConnectOregon VI project work nearing 40% completion.

The Port Commission heard a final report for a Waterfront Traffic Study, commissioned by the Port in January and developed by DKS Associates, Inc.

JULY

Like most Independence Day traditions, the 4th of July fireworks show was cancelled due to the COVID-19 pandemic.

Access to Sandbar cleared of brush.

The biennial Fracture Critical Inspection of the bridge was conducted the week of July 6th, requiring up-close inspection and photography of every structural member of the bridge by a climbing crew from David Evans & Associates.

Facilities crews removed a significant amount of brush and opened up a much wider opening from the east end of the Event Site to the Sandbar to help alleviate crowding conditions for kiters.

Port crews completed repairs on a long section of guardrail near the lift span of the bridge that had been damaged by a truck impact.

Bridge guardrail repair

The new access ramp and reconfiguration of the Nichols Basin Dock was completed, adding significantly more usable area.

Nichols Basin access ramp

Facilities staff carried out a major repair with 28 cubic yards of riprap next to the Jensen Building where a wash out occurred along the riverbank.

Rip rap repair near the Jensen Building

AUGUST

In an effort to reduce crowding at popular waterfront areas and mitigate risk of COVID-19 spread in the community, the Port closed the Event Site parking lot to all but annual pass holders, closed Lot 1 completely, closed off parking along the eastern curb of N. 1st Street, and closed the Nichols Basin dock to the public.

COVID-19 restrictions at the Event Site

The entire Hood River waterfront community mourned the tragic deaths by drowning of two visitors near Marina Beach on August 5th. In response, Port staff installed additional signage warning of the dangerous currents at multiple locations along the beach.

A memorial service for Montana-based helicopter pilot Tom Duffy, who lost his life battling the White River fire on August 17, was held at the Ken Jernstedt Airfield on August 27th.

Pilot Tom Duffy

The ConnectOregon VI project was reported as over 67% complete. Paving activities for the North Apron project also began after resolution of the sub-grade issues, and was 80% complete by month’s end.

A positive 2020 Fracture Critical Inspection report was received.

SEPTEMBER

The Port worked to adopt new Oregon OSHA workplace rules to mitigate the risk of COVID-19 spread in various work environments.

Summer intern Beto Rojas (R) with Fred Kowell

Summer interns Jose Santillan and Beto Rojas completed their analysis of property owned by the Port in Wasco County, and presented their findings and recommendations to the Commission on September 15.

The Big 7 Building Re-Roof Project was completed by Competitive Commercial Roofing.

In response to reports of large numbers of evacuees fleeing the Clackamas County wildfires, the Port opened Lot 1 for free RV and trailer parking for evacuees.

Port Bridge Project Director Kevin Greenwood reported to the Port Commission that the agency was about 75% complete with the Final Environmental Impact Statement contract with WSP.

OCTOBER

Marcela Diaz

Marcela Diaz was promoted to Finance Specialist in recognition of exceptional work in Accounts Receivable and Customer Service.

A motorized gate for the north end of Orchard Road was installed, and the concrete pad for the fuel tank was poured at the Airport.

The Commission approved a construction contract with DKB Limited for construction of the community-funded Steve Gates Remembrance Project near Frog Beach on the waterfront.

Event Site concessions up and running

The Port had high response to its call for seasonal concessions permits for food concession businesses at the Event Site Dock and for kiteboard, windsurf, and SUP schools and rentals, authorizing nine agreements for five years.

The Commission approved the FAA-required Disadvantaged Business Program Agreement for the Ken Jernstedt Airfield.

The ConnectOregon VI project and the North Apron Rehabilitation Project were both completed.

The Port Commission approved the Hood River Area Multi-Jurisdictional Parks, Recreation and Open Space Master Plan.

The Port Commission approved the Bi-State Working Group Memo of Understanding (MOU) on Oct. 27th, with the cities of Hood River, White Salmon and Bingen, plus Hood River and Klickitat counties agreeing to the MOU.

NOVEMBER

The Port Commission held its annual Fall Planning Work Session on November 10.

A new storm line connection from the Halyard Building to the City’s storm line was successfully installed. Zeller Excavating and the City of Hood River’s contractor were able to coordinate the challenging project well.

The Commission approved the 2021 parking rate schedule with no changes to hourly paid parking rates, daily Event Site parking and season pass prices.

A contract was approved for bi-annual bridge deck welding with Bulldog Welding.

A seasonal parking agreement was authorized for Columbia Area Transit to provide skier shuttle parking at the Event Site for the 2020-21 season.

DECEMBER

A public hearing on the Draft EIS was held December 3rd. Comments on the Supplemental DEIS were taken during this month on changes made to the original Draft EIS published 10 years ago.

The audit for Fiscal Year ending June 30th, 2020 was approved by the Port Commission.

The Port Commission signed a Proclamation of Commendation and Appreciation for U.S. Representative Greg Walden for his long public service and contributions to the Port District.

Jon Davies (L) and Michael McElwee (R) at one of many meeetings over the years with Greg Walden

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This year’s message is unsurprisingly mixed. COVID-19 impacts dominated 2020, and I expect 2021 will be characterized by recovery. I am especially proud of how our Port staff responded and adapted to circumstances that were unforeseen and unknowable.

Staff worked with public health agencies at the County and State levels to initially respond to the immediate needs of our community. One simple example is the Port’s pre-purchase of toilet paper for the entire 2020 summer season. The Port donated much of its stock to the local food bank at a time when toilet paper was in extremely short supply. It was particularly difficult to figure out how to handle operations at the toll booth while keeping staff safe from exposure to the virus. Official Zoom meetings were quickly implemented.

It was the Port’s talented staff who made modifications while doing their jobs to keep the waterfront semi-open as well as sustain the less obvious things the Port does. Two large projects were completed at the Ken Jernstedt Airfield in 2020: the FAA-funded North Apron Rehabilitation project and the ODOT-funded Aviation Technology and Emergency Response Center infrastructure project. An important step in bridge replacement was accomplished with the formation of a Bi-State Working Group consisting of the cities of Hood River, Bingen and White Salmon, Hood River and Klickitat counties, plus the Port. We were successful, in a joint application with Klickitat County, in obtaining a $5 million federal grant to advance bridge replacement. The Lower Hanel Mill project is completed, transformed from an industrial clean-up site to shovel-ready light industrial land for sale.

I anticipate this year we will be getting back to normal. Though Zoom won’t be going away, I hope a lot of things will be coming back.

John Everitt,

Port Commission President

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