AAPA Seaports Advisory
 

Finance: Everett, Los Angeles

Print Print this Article | Send to Colleague

Everett: Port Earns 19th Consecutive Clean Financial Audit

The Port of Everett demonstrated its high financial standards once more by achieving another clean audit, marking the 19th consecutive year with no findings reported by the Washington State Auditor’s Office (WSAO).

During a visit to the port this April, representatives from the auditor’s office reviewed financial documents for calendar year 2015. The audit focused on public meetings act compliance, disbursements, financial condition, and procurement card and travel activity.

"Congrats to the entire port team for being good stewards of public resources," said Port CEO Les Reardanz. "This is a very impressive achievement and one we should all take pride in."

The WSAO audits the Port of Everett to ensure it is being fiscally accountable, transparent, and complying with laws and regulations. View the 2014 and 2015 reports.

Los Angeles Adopts $1.17 Billion Fiscal Year 2016-17 Budget

The Los Angeles Board of Harbor Commissioners has approved a $1.17 billion FY 2016-17 budget for the Port of Los Angeles.

The budget allocations support the four key objectives of the port’s 2012-2017 strategic plan: (1) development of a world-class infrastructure that promotes growth; (2) implementation of an efficient, secure and environmentally sustainable supply chain; (3) improved financial performance of port assets; and (4) strengthened relationships with port stakeholders.

It anticipates operating receipts totaling $452.8 million in operating receipts, a 5.7 percent increase from the prior year budget, largely due to anticipated growth in cargo volumes and related shipping service revenues.

Cargo volumes have been on the upswing since service levels returned to normal during the first half of 2015.    According to the port, implementation of a chassis pool program by its three major chassis providers, a "peel-off" program, and "continued supply chain optimization efforts" are also showing positive results in terms of cargo velocity. Container traffic is projected to grow by 1.9 percent to approximately 8.5 million TEUs in FY 2016-17.

With many capital improvement programs wrapping up in FY 2015-16, the port’s newly approved $146.1 million capital improvement plan (CIP) anticipates a 24 percent decrease relative to the prior year budget. Completed CIP projects in FY 2015-16 include the TraPac Intermodal Container Transfer Facility, TraPac terminal buildings and main gate, the John S. Gibson Intersection/Northbound Interstate-110 ramp access improvements, as well as Interstate-110/State Route 47 connector improvements.

Budgeted to continue in FY 2016-17 are TraPac backland improvements, Yusen Terminals, Inc. berth redevelopment, electrical infrastructure at the World Cruise Center, wharf rehabilitation at the WWL Vehicle Services terminal, and liquid bulk terminal wharf improvements.

The FY 2016-17 budget includes operating expenses of $249.0 million, a 3.6 percent increase driven primarily by increases in salaries and benefits and a reduction in capitalized expenditures. Salaries and benefit allocations to the construction and maintenance division, as well as to port police, are expected to comprise more than 40 percent of gross salaries and benefits approved for FY 2016-17.

The port says that approved budget will enable it to maintain a AA debt rating by surpassing a 2.0 times debt service coverage, generating at least a 45 percent operating margin and preserving a prudent level of cash reserves that is consistent with an AA-rated port.  It also says FY 2016-17 budget will support the creation of 3,940 jobs within the region.
 

Back to AAPA Seaports Advisory

Share on Facebook Share on Twitter Share on LinkedIn