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, 2022. 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, 2022 was $51,347,142, representing a $1,104,873 increase over the prior year.
Table 1 depicts an increase in total assets of $13,602,005, primarily attributable to receipt of a $5,000,000 BUILD grant from the US Department of Transportation for the bridge replacement effort. Leases added $6,711,075 lease receivable to assets. Capital outlay increased by $820,404 related to capital improvements to the existing bridge to keep it safe and functioning while the bridge replacement effort continues.
The largest portion of the Port’s Net Position, at 75%, 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 $12,697,117 is unrestricted, meaning it is available for meeting the Port’s ongoing obligations. The decrease in unrestricted net position of $1,640,143 from last year is attributable to the use of cash and investments for the capital projects incurred during the year.
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 $1,104,873, or 2.2%, compared to the prior year.
Governmental Activities – The Net Position for governmental activities increased $1,061,943, or 11.1%, 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:
• Higher interfund transfers by $815,255
• Lower capital improvements as compared to prior years on the existing bridge.
Business-type Activities – Business type activities generated a $42,930 increase in the Port’s Net Position. The financial results for this year include a $331,865 increase in toll revenues (5.8%) over the prior year. Lease revenues from industrial and commercial properties increased $327,768. Recreation revenue increased by $32,843. Marina and Airport tenants incurred a rate increase that amounted to $59,715 over the prior year. Operating grants increased by $470,698, mostly from reimbursement from the American Rescue Plan Act for tolling losses that occurred during the pandemic. Capital grants decreased by $2,471,746 due to the Airport north apron construction being completed in the summer of 2021.
The Revenue Fund showed a $42,945 improvement in interest earnings, while Other Sources decreased $604,980 due mostly to lower levels of other revenues and market value of investments. Operating expenses were slightly higher by $350,666 due to payroll, benefits and depreciation contributing to this higher level of costs. Higher levels of payroll and capital improvements in the General Fund and Bridge Repair & Replacement Fund, respectively, drove the change in Transfers by $815,550.
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 and fee revenues showed higher revenues, with a 95% occupancy rate at year’s 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. It continues to develop light industrial properties that may result in new tenants and jobs, while undeveloped land at the waterfront (Lot 1) holds 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 firstname.lastname@example.org or (541) 386-1645.