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2014-15 Adopted Budget

Table of Contents

Budget Summary .............................................................................................................................................. 1

Executive Director’s Message ....................................................................................................................... 3

Budget Overview ......................................................................................................................................... 7

A Look at the Port of Portland ....................................................................................................................... 13

The Port of Portland Commission .................................................................................................................. 15

Fund Appropriations ....................................................................................................................................... 16

5-Year Capital Forecast By Program ............................................................................................................. 17

How to Trace Port Dollars .............................................................................................................................. 19

Summary of Operating Budget by Division .................................................................................................... 20

Summary of Resources and Requirements By Fund..................................................................................... 21

Summary Highlights (Budget Basis) .............................................................................................................. 22

General Port Operations .................................................................................................................................. 25

General Fund .................................................................................................................................................... 27

Resources & Requirements – General Fund ................................................................................................. 28

Marine ........................................................................................................................................................... 31

Requirements Summary – Marine ............................................................................................................. 33

Personnel Services – Marine ..................................................................................................................... 34

Industrial Development ............................................................................................................................... 35

Requirements Summary – Industrial Development ................................................................................... 36

Personnel Services – Industrial Development ........................................................................................... 37

General Aviation ........................................................................................................................................... 39

Requirements Summary – General Aviation ............................................................................................. 40

Personnel Services – General Aviation ..................................................................................................... 41

Development Services and Information Technology ............................................................................... 43

Requirements Summary – Development Services and Information Technology ....................................... 47

Requirements Summary – Engineering ..................................................................................................... 48

Personnel Services – Development Services and Information Technology .............................................. 49

Navigation ..................................................................................................................................................... 51

Requirements Summary – Navigation ....................................................................................................... 52

Personnel Services – Navigation ............................................................................................................... 53

Corporate Administration ........................................................................................................................... 55

Requirements Summary – Corporate Administration ................................................................................ 56

Personnel Services – Corporate Administration ........................................................................................ 57

Bond Construction Fund ................................................................................................................................. 59

Resources and Requirements – Bond Construction Fund............................................................................. 60

Capital Outlay Summary by Project – Bond Construction Fund .................................................................... 61

Aviation ............................................................................................................................................................. 67

Airport Revenue Fund ...................................................................................................................................... 69

Resources & Requirements - Airport Revenue Fund ..................................................................................... 70

Requirements Summary– Commercial Aviation ............................................................................................ 72

Personnel Services – Commercial Aviation ................................................................................................... 73

Airport Construction Fund .............................................................................................................................. 75

Resources and Requirements – Airport Construction Fund........................................................................... 76

Capital Outlay Summary by Project – Airport Construction Fund .................................................................. 77

Airport Revenue Bond Fund ............................................................................................................................ 85

Resources and Requirements – Airport Revenue Bond Fund ....................................................................... 86

Debt Service Requirements – Airport Revenue Bond Fund........................................................................... 86

Customer Facility Charge (CFC) Fund ........................................................................................................... 87

Resources and Requirements – CFC Fund ................................................................................................... 88

Passenger Facility Charge (PFC) Fund .......................................................................................................... 89

Resources and Requirements – PFC Fund ................................................................................................... 90

PFC Bond Fund ................................................................................................................................................ 91

Resources and Requirements – PFC Bond Fund.......................................................................................... 92

Debt Service Requirements – PFC Bond Fund ............................................................................................. 92

Appendix ........................................................................................................................................................... 93

Property Tax Levy and Collection Estimates .................................................................................................. 95

Personnel Services Summary........................................................................................................................ 96

Employee Benefit Tables ............................................................................................................................... 97

Statement of Indebtedness (Port of Portland Obligation) .............................................................................. 98

Interfund Transfers ......................................................................................................................................... 99

Risk Management Insurance Plan ................................................................................................................. 100

Glossary of Terms .......................................................................................................................................... 102

2014-15 Adopted BudgetPort of Portland

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Budget Summary

2014-15 Adopted Budget Port of Portland

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As our region continues its slow but steady climb out of the recession, public and private investments are yielding short and long term employment opportunities and economic benefits for the region.

Nowhere is this more evident than at the Port of Portland’s (Port) aviation, marine and industrial land holdings. The fiscal year (FY) 2014-15 budget marks a period of a slow and steady return to growth. Through strategic and prudent capital investment over the next few years, we and our tenants and customers are positioning our organizations to take advantage of new market realities and opportunities for advancement. As with prior years, we are staying true to our two key strategic objectives: retaining and growing key marine and aviation service and serving as a regional leader in industrial land acquisition and development to spark job growth.

Aviation

Owing to the improvement in the local economy and new investments by our airline partners in nearly two dozen nonstop route improvements, passenger volume has been increasing at Portland International Airport (PDX). In 2013, the airport reached an all-time record of 15 million passengers with projections for another million more in FY 2014-15.

This growth, combined with changes in technology for everything from ticketing to baggage handling to security procedures, signals the need for a renewed focus on capital improvements at PDX. Hence, this budget and capital projections over the next couple of years include funds designated for ticket lobby redesign, replacement of nearly 14 acres of carpet and other improvements to our terminal and concourses. These ambitious projects will accommodate the latest technological advancements while maintaining and enhancing the customer experience.

We’ll be refreshing our award-winning retail and restaurant offerings ensuring a wide selection of home-grown favorites. We’ll open a new USO center for military personnel and continue to develop our art and entertainment programs.

Marine

With growing established markets and new, emerging markets in Asia, Columbia River maritime trade is poised for tremendous growth. Ports up and down the river are making investments that position them to take full advantage of the resurgence. Examples in recent years include $200 million invested at the Port of Longview for the EGT grain export facility; $137 million at the Port of Vancouver USA for its West Vancouver Freight Access rail project and Terminal 5 development; and $36 million at the Port of Kalama for a new grain cleaner building, loading belt and silos.

At the Port’s own facilities, our tenants are showing their commitment to our region with new investments that will help move export cargo more effectively and efficiently. For example, at Terminal 4 Kinder Morgan has invested $9.5 million in a new ship loader for soda ash and is planning a new $20 million storage dome and rail scale. At Terminal 5, Columbia Grain is investing $40 million in an expansion. Portland Bulk Terminals/Canpotex is investing in a new $30 million ship loader as well as a potential $25 to $150 million expansion for the export of potash, used in fertilizer. At Terminal 6, Auto Warehousing Company has invested in a $2.8 million project to expand its processing building, and our container terminal operator, ICTSI Oregon, Inc., continues to invest in their equipment and operations.

The Port of Portland is also making investments of its own—removing antiquated equipment and storage facilities and building new pipeline rack systems, maintaining and deepening berths, modernizing cranes and making road and rail improvements.

Our bulks, break-bulk and auto business lines show strong promise over time and, while our container operations continue to face challenges, we remain committed to the long term operation and viability of Oregon’s only container terminal. Containers continue to play a critical role in our regional economy

Executive Director’s Message


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both in terms of supporting Oregon’s economic strength in exports and in terms of creating local jobs. It is estimated that more than 637 direct jobs and more than $33 million in annual personal wages are related to Hanjin shipping line’s calls to Terminal 6. We believe that over time the recent challenges at the container terminal will be resolved allowing this mission-critical facility to build an ever-stronger niche in the container market and to maintain and grow access to global markets for regional businesses well into the future.

Land for Jobs

As the economy recovers, businesses seeking to expand or relocate will be looking for options that offer the right mix of land size and “shovel-readiness,” access to transportation infrastructure, and a skilled workforce to meet bottom-line goals. As one of the largest industrial land holders in the state, the Port seeks to help meet this regional need.

We are seeing increased private investment from tenants and other businesses at our five business parks and an improving market for land sales. In Rivergate Industrial District, Archer Daniels Midland Company constructed a new sweetener terminal, and Ajinomoto North America added a 9,000 square foot consumer foods division office and a research and development center. At Portland International Center, the first phase of a three-building, 833,360 square foot state-of-the-art logistics park is currently under construction. At Swan Island, the Port amended a lease agreement and worked closely with Business Oregon and Portland Development Commission to help land Daimler Trucks North America’s new headquarters project on Swan Island. It will house up to 1,200 employees and prompt an estimated $150 million in private investment to construct the building. The project will bring at least 350 new high salary jobs.

In addition, the Port continues to develop and market Troutdale Reynolds Industrial Park – home to a FedEx Ground regional distribution hub – and Gresham Vista Industrial Park. Gresham Vista joined Oregon’s Certified Industrial Lands program, and will be an eco-industrial district fostering sustainable design and operational practices. An 11,000-square-foot clinic for Fresenius Medical Care North America was the first new construction on one of the only commercially zoned lots.

Looking at industrial options for future growth, we encountered a set-back in FY 2013-14 when we chose to withdraw consent to annex West Hayden Island. It had become clear that the City’s mitigation requirements were not proportionate to potential development impacts and would price any developable land out of the market. The result is less industrial land, lost jobs and missed tax revenue for our city and region, as well as missed opportunity to take advantage of economic recovery as other ports up and down the river have already done.I still have faith that the day will come when wise people in the region will move this project forward. Until then, the Port will reassess options and continue to manage West Hayden Island for uses supporting our strategic objectives including eventual development of marine terminal facilities. We strongly believe that given its ideal location and unique attributes, future annexation and development prospects are possible.

Inside the Port

Internally, we remain focused on cost containment. The rapidly rising costs of healthcare have been factored into our budget but we are also aggressively working to reduce those costs through innovative wellness programs and a restructuring of our healthcare benefit programs. These actions will continue to effectively lower the rate of increase in these costs.

Looking ahead, we are turning to you, our stakeholders and business partners, for input as we develop our 2015-2020 Strategic Business Plan. Our outreach efforts include work sessions with expert panelists, research into community views and ongoing outreach to those most impacted by our operations and business decisions.


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As we move forward our public mission remains our guide and our motivation. Each of our talented staff members are committed to the highest standards of customer service, environmental stewardship and civic engagement.

As always, it is an honor for all of us at the Port of Portland to serve our community, our state and our region.

Bill Wyatt

Executive Director


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Budget OverviewThe budget for Fiscal Year (FY) 2014-15 allocates resources to improve the long term competitive position of the Port of Portland (Port) and to assist the Port in promoting the economic health of the region. The budget is developed annually to help meet our mission and achieve our strategic goals and objectives while preserving and building upon the Port’s financial stability and viability.

We continue to be encouraged by the economic progress and the improvements in many of our business lines this past year. We recognize there are still many challenges ahead, including continued volatile fuel prices for our customers and business partners, as well as other regional, national, and global economic forces. Over the next year, we have budgeted and allocated resources to address the challenges and opportunities in this complex marketplace including the maintenance and enhancement of our facilities, future industrial land sales, waterfront labor disputes, the Portland Harbor Superfund Site cleanup process in the Willamette River, and the increasing costs of health care. As we diligently work to address these challenges and maximize our opportunities, we are ever mindful of maintaining competitive costs for our customers and value for the communities we serve.

Aviation

Travel at Portland International Airport (PDX) continues to increase. Nearly 16 million passengers are expected to travel through PDX in FY 2014-15, setting an all-time record. This growth has been spurred by new and expanded air service by nearly all airlines serving PDX. We are pleased to report that PDX ranked No. 1 in the nation, according to a Travel+Leisure’s World Best Awards reader poll in October 2013. The popular travel magazine rated 68 domestic airports in eight categories: business travel; family travel; flight delays; design; food and drink; shopping; check-in; and location.

With the significant infrastructure investments made over the past several years (the long-term parking garage, installing the in-line baggage screening system, rehabilitating the Airport’s 11,000-foot south run-way, and completing the deicing system enhancement project), our focus continues to be on maintaining our assets and infrastructure. Our FY 2014-15 capital program therefore includes a number of airfield maintenance and rehabilitation projects as well as several terminal efficiency improvement projects. Our focus is to efficiently and effectively utilize our facilities to meet the needs of our record setting passengers and maintain PDX’s position as one of the world’s best airports.

Marine

Activity at our marine terminals continues to be mixed with regional, national, and global economic forc-es impacting the Port’s marine division more heavily than our other divisions. In particular, local forces continue to have a profound impact at our Terminal 6 container facility. While the FY 2014-15 container volume is forecast to be 192,500 twenty-foot equivalent units (TEUs), which is 8.3 percent lower than our FY 2013-14 Adopted Budget, it is 13.1 percent higher than our FY 2012-13 actuals of 170,177 TEUs. The forces driving the lower volume primarily include lingering labor issues reducing productivity and subse-quently increasing terminal prices. Despite these challenges, we are optimistic that the Weighted Volume Container Carrier Incentive Program, approved by the Port Commission in February 2014, will result in additional cargo based on higher per vessel container volumes than with existing services. This program was developed to help sustain the mission-critical container franchise for shippers in Oregon and through-out the region. It is limited to calendar year 2014 with a cost not to exceed $4.0 million ($2.0 million is included in our FY 2014-15 budget and the rest is attributable to the current FY 2013-14). The cost of this program is funded by the annual rent paid by International Container Terminal Services Oregon (ICTSI), the Port’s container facility operator, which is budgeted at $4.8 million in FY 2014-15.

In spite of the challenges at the Terminal 6 container facility, activity at our other marine facilities has been improving. Portland continues to be the second largest auto import gateway on the U.S. West Coast, and is fifth in the nation for auto imports. The auto forecast for FY 2014-15 is a decrease of 8.4 percent com-pared to our FY 2013-14 Adopted Budget as a result of lower Honda imports. This is a result of Honda


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shifting the production of their Fit model from Japan to their Mexico facility as well as their move to tran-sition Portland from a national to a regional hub. Toyota volumes are expected to remain flat, while the volumes handled by Auto Warehousing Company (AWC) are expected to increase. AWC Hyundai imports remain very strong with imports forecast at 75,000 vehicles next year. The highlight, however, is AWC Ford exports to China and Korea. Exports are forecast at nearly 40,000 vehicles in FY 2014-15. Their new auto processing facility, in part funded with a ConnectOregon IV state grant, is currently fully utilized after only three months of operation. AWC is looking to expand from one to two shifts at the facility to allow for increased capacity.

With additional facility expansion and improvements at Terminal 4, mineral bulk volumes including potash and soda ash, are forecast to increase nearly 7.0 percent over our FY 2013-14 Adopted Budget. Howev-er, despite the completion of Columbia Grain’s $35 million expansion project in FY 2014-15, the forecast for grain activity is a decrease of nearly 8.0 percent compared to our FY 2013-14 Adopted Budget. This decrease is a result of the overall increased grain capacity and competition along the Columbia River, in particular the Export Grain Terminal in Longview, Washington. However, as EGT enters their fifth year of operation, we expect their market share to stabilize and future opportunities for Columbia Grain, with their expanded facilities, look good as the world-wide grain demand is expected to increase.

Finally, the forecast for breakbulk activity is a decrease of nearly 29 percent as a result of Union Pacific Railroad’s decision to import steel rail through a central California port due to changes in the rail dimen-sions and related, issues at Terminal 2. While the steel rail volume is expected to decrease, we anticipate handling nearly 50,000 short tons of barite ore as well as some smaller dimension steel rail and other spot cargo (i.e., granular urea fertilizer, manganese, etc.) through the facility, for a total of nearly 110,000 short tons in FY 2014-15.

Looking forward, the Port intends to continue making the most efficient and effective use of our marine facilities. We remain committed to growing sustainably, enhancing our surrounding communities, and improving the livability within the region.

Industrial Land Development

At the time our FY 2013-14 budget was developed, there was a high level of interest in property at our business parks. Consequently, we optimistically budgeted land sales at nearly $24 million. As the fiscal year has progressed, we reduced that forecast to $1.5 million due to market and regulatory uncertainties with key transactions. While those transactions remain active, the process and schedule for closing is less certain than anticipated at the outset of the 2013-14 budget. Our forecasts for FY 2014-15 are more conservative at $6.2 million; however, we are cautiously optimistic that as the market continues to improve it will lead to more transactions taking less time to complete.

To ensure the properties at our business parks are ready when our customers are ready, our FY 2014-15 budget includes the continuation of phase two development at the Troutdale Reynolds Industrial Park (TRIP), as well as improvements at the Gresham Vista Business Park.

Finally, our FY 2014-15 budget does not include resources to continue with the annexation process of West Hayden Island. In January we formally withdrew our consent to annex West Hayden Island into the City of Portland. Annexation of this property would have preserved 500 acres as open space for habitat restoration and recreational amenities and 300 acres for future marine industrial development supporting local jobs and private investment.

While we were agreeable to mitigation exceeding state and federal requirements, the City’s proposed an-nexation terms simply made the 300 acres unviable in the marketplace. Given the substantial costs and conditions, we determined that the investment of any additional time and money into the process is not justified at this time.


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As activity across the Port’s business lines continues to improve, we are cautiously optimistic. We are excited about the opportunities, but are cognizant of the continued challenges impacting our customers and business partners in the transportation industry. Our focus continues to be on quality, performance, and customer service. The businesses we serve are becoming more complex and price sensitive. We continue to work with our stakeholders, customers, and business partners focusing on developing creative solutions to operate more efficiently and effectively, and where possible, to reduce costs and maximize revenues. Our goal is for all customers, whether they are passengers, airlines, shippers, tenants, policy makers or stakeholders, to view the Port as sustainable, efficient, innovative, and responsibly managed.

* Container activity is a part of ICTSI lease. Container information is provided as reference; the Port and ICTSI are working collaboratively to expand container service in a continuing effort to meet the region’s shipping needs.

Budget Volume Assumptions

PDX

FY 2012-13 FY 2013-14 FY 2014-15Actual Budget Forecast

Total Passengers(in millions)

Landed Weight(lbs in millions)

Marine


Containers*(TEU)Autos(Units)Breakbulk(Short Tons)Grain Bulk(Short Tons)Mineral Bulk(Short Tons)

4,996,121

154,773 154,324 110,321

3,615,868 4,188,783 3,858,090

4,861,192 5,198,500

(28.5%)

(7.9%)

6.9%

9.3 9.6 9.9 3.1%

Change

170,177 210,000 192,500

270,795 280,000 256,500

(8.3%)

(8.4%)

Description

Description

Change

14.7 15.5 15.9 2.6%


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Capital Investments

The Port’s total capital expenditure program for FY 2014-15 (including staff time), is estimated at $208.1 million. Approximately $147.8 million is for improvements at PDX (to be paid from the Airport Construction Fund), while $60.2 million is targeted for the Port’s General Fund (to be paid from the Bond Construction Fund – the capital program for Marine, Industrial Development, General Aviation, Navigation, and Admin-istrative divisions).

Major capital expenditures for PDX include:

• $29.0 million for the Terminal Efficiency Improvement Program

• $18.5 million for the Terminal post security concessions redevelopment program

• $10.1 million for the Terminal carpet replacement program

• $ 7.8 million for the Rehabilitation of taxiway T

• $ 5.0 million for the Access control replacement program

• $ 4.8 million for the Rehabilitation of taxiway E

• $ 4.6 million for the Rehabilitation of the Mt. Hood Ave ramps

• $ 4.5 million for the Redevelopment of the ticket lobby exit ways

Major capital expenditures for the Port’s General Fund include:

• $ 21.2 million for phase II improvements at TRIP (Troutdale Reynolds Industrial Park)

• $ 7.1 million for Hillsboro runway construction

• $ 4.0 million for construction of the Rivergate overcrossing

• $ 2.0 million for the purchase and installation of a rail scale at Terminal 2

Operating Projections

FY 2014-15 marine operating revenues are budgeted to increase approximately 6.1 percent, or $1.8 mil-lion from the FY 2013-14 Adopted Budget primarily due to annual rent increases on ground leases for the container, auto, mineral and grain bulk business lines. Industrial Development land sales are budgeted to decrease $17.5 million from $23.7 million in FY 2013-14 to $6.2 million in FY 2014-15 due to a slower than anticipated industrial land market.

The General Fund FY 2014-15 operating expenditures (Personnel Services and Materials and Services) are budgeted to increase approximately 4.3 percent, or $3.8 million, from the FY 2013-14 Adopted Budget due to administrative and represented employee salary increases as well as increased health care benefit costs.

General and Bond Construction Fund balances need to be prudently managed to ensure our strategic goals and objectives are met and to preserve and build upon the financial stability and viability of the Port. Adequate resources need to be maintained to provide for continued operations, to fund long-term capital expenditures anticipated for marine and industrial land development, and to meet the Port’s obligations related to the clean-up of the Portland Harbor Superfund Site in the Willamette River.


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PDX operating revenues (including airline, rental car, parking, and concession revenues) for FY 2014-15 are budgeted to increase approximately 6.2 percent, or $11.8 million, from the FY 2013-14 Adopted Budget. This increase is primarily is a result of higher passenger volumes and an increase to the parking daily rate maximum amount implemented in the short and long term parking garages in April 2014. Op-erating expenditures (Personnel Services and Materials and Services) for FY 2014-15 are budgeted to increase approximately 5.0 percent, or $4.2 million, from the FY 2013-14 Adopted Budget primarily due to administrative and represented employee salary increases as well as increased health care benefit costs. Total Port FTEs (Full Time Equivalents – a measure of workforce size) are budgeted to increase 3.5 from the FY 2013-14 Adopted Budget of 785.7 to 789.3 in FY 2014-15.

Accounting Basis

This Budget document illustrates the expected financial performance of the Port of Portland for the com-ing fiscal year. In conformance with Oregon Revised Statutes, the Budget shows operations of the Port on a fund basis (Resources and Requirements). All Port Funds are budgeted on an accrual basis except for certain expenses including some environmental expenses which are budgeted on a working capital basis.

The Port maintains, and continuously seeks to improve, a system of financial controls and processes which are in place to ensure the public of informed decision-making and fiscal accountability.

Cynthia A. Nichol

Chief Financial Officer and Budget Officer


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A Look at the Port of Portland

Located in Portland, Oregon, the Port of Portland is the bridge that connects Oregon to the world. The Port manages marine and airport facilities that link to intermodal transportation systems connecting rela-tively isolated local markets with each other, the nation, and beyond.

History

The Port of Portland was created by the Oregon Legislature in 1891 to dredge a shipping channel from Portland 100 miles to the sea. Today, the Port is charged with promoting aviation, maritime, commercial and industrial interests within Clackamas, Multnomah, and Washington counties (including the City of Portland). The scope of Port services extends beyond this immediate metropolitan area to include farmers and other industries from inland regions of the Northwest. The Port is directed by a nine-member com-mission, whose members are appointed by the Governor of the State of Oregon and confirmed by the Oregon Senate.

The Port’s location at the confluence of two navigable rivers, two transcontinental railroads, and two inter-state freeways has been a factor in the development of facilities and the commodities we ship. Portland’s population size and economic history have dictated our export dominance in trade. It has also influenced the development of distribution facilities that serve markets beyond our geographic boundaries.

Facilities and Services

The Port owns four marine terminals, Oregon’s primary commercial airport, two general aviation airports (Hillsboro and Troutdale), and oversees six industrial/business parks. The Port also owns and operates the dredge OREGON to help maintain the shipping channel on the lower Columbia River.

Operating an award-winning, world-class airport allows cargo and passenger air carriers and a host of vendors to be successful in their businesses, and in turn, millions of passengers and tons of air cargo have ready access to destinations around the globe. Streamlined marine terminals and prime industrial properties offer shippers, ocean carriers and about 1,000 area businesses an opportunity to compete in international markets.

The Port plays a major role in the region’s economy. In the Port’s most recent economic impact study, based on the calendar year 2011 data, the Port’s economic impact model estimates that:

• More than 26,000 jobs, $1.7 billion in wages, salaries, and consumption impacts, and nearly $164 million in state and local taxes were generated by activities at the Port’s marine and aviation facili-ties.

• More than $4.5 billion of business revenue was received by firms providing goods and services to support the activities at the marine terminals and airports.


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• The Port generates more than $6 in tax revenue for every $1 it collects in property taxes.

• Visitor industry impacts at PDX add an additional 36,000 jobs, nearly $600 million in personal in-come, and $1.8 billion in business revenue.

• The Port’s industrial and business parks are home to more than 300 firms, which generate 31,000 jobs and $138 million in state and local tax revenue across the region.


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The Port of Portland Commission

Port of Portland Comissioners are appointed by the Governor of the State of Oregon and serve a four year term.

Port of Portland Senior Management

The Port’s senior management structure is shown below. Working in concert with, and under the policy direction of, the Board of Commissioners, the Port represents a unique blend of government and private enterprise.

Jim Carter PresidentPaul A. Rosenbaum Vice-PresidentDiana Daggett SecretaryPeter Bragdon TreasurerTom Chamberlain CommissionerBruce A. Holte CommissionerRobert Levy CommissionerLinda M. Pearce CommissionerTom Tsuruta Commissioner

Deputy Executive Director

Curtis Robinhold

Chief Operating Officer

Vince Granato

Chief Commercial Officer

Sam Ruda

General Counsel

Daniel Blaufus

Director of Development Services and Information Technology

Stan Watters

Director of Human Resources

Bobbi Stedman

CFO and Director of Financial & Administrative Services

Cindy Nichol

Director of Public Affairs

Kristen Leonard

Executive Assistant

Pam Thompson

Executive Director

Bill Wyatt


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Fund AppropriationsAdopted Proposed Approved Adopted

Fund Actual Actual Budget Budget Budget Budget

2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Operating Funds

General Fund $277,039,489 $238,759,917 $257,884,245 $205,380,565 $205,233,582 $207,273,430

Airport Revenue Fund 277,826,563 243,452,091 227,308,654 282,139,269 282,040,108 282,092,811

SubTotal Operating Funds $554,866,052 $482,212,009 $485,192,899 $487,519,834 $487,273,691 $489,366,241

Construction Funds

Bond Construction Fund $62,374,020 $37,090,700 $62,622,758 $67,063,788 $70,226,193 $70,226,193

CFC Fund - - - 19,930,039 19,982,561 19,982,561

PFC Fund 117,943,112 57,472,779 61,348,240 59,477,496 59,477,496 59,477,496

Airport Construction Fund 128,429,697 129,014,880 135,403,887 202,474,349 202,568,892 202,511,260

SubTotal Construction Funds $308,746,829 $223,578,359 $259,374,885 $348,945,672 $352,255,142 $352,197,509

Port Debt Service Funds

Airport Revenue Bond Fund $97,393,525 $69,451,721 $75,071,139 $84,379,870 $84,379,870 $84,379,870

PFC Bond Fund 34,796,825 114,703,920 29,805,414 30,112,028 30,112,028 30,112,028

SubTotal Debt Service Funds $132,190,350 $184,155,641 $104,876,553 $114,491,898 $114,491,898 $114,491,898

Total* $995,803,231 $889,946,008 $849,444,337 $950,957,404 $954,020,730 $956,055,649

* Resources = Requirements

For accounting purposes, all Port funds are accounted for on an accrual basis. For budgetary purposes, all Port funds are budgeted on an accrual basis, except some environmental expenses.


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5-Year Capital Forecast by Program

Fiscal Year Ending June 30

Division / Line of Business SummaryFY13-14 FY14-15 FY15-16 FY16-17 FY17-18

Budget Budget Forecast Forecast Forecast

HIO - Hillsboro Airport $14,834,950 $10,388,785 $3,370,545 $20,508,622 $11,309,333

TTD - Troutdale Airport 2,967,515 3,722,885 6,595,594 6,518,152 194,076

AGA - General Aviation Total $17,802,465 $14,111,670 $9,966,139 $27,026,774 $11,503,409

AVI - Aviation AAD - Aviation Administration $65,000 $793,000 $121,000 $- $-

AIR - Airfield 29,597,890 19,244,725 26,202,300 36,660,475 22,721,088

ARF - Rescue 2,131,725 2,627,725 237,530 760,010 1,418,700

ARS - Airside 513,000 - - - -

CAR - Cargo 15,895,885 4,258,500 1,500,000 3,226,300 11,545,000

ENV - Environmental 436,100 89,600 1,072,060 1,172,040 146,800

GTO - Ground Transportation 6,517,250 15,007,900 46,730,200 142,208,600 107,486,600

HQN - HQ Rent & Revenue Sharing 185,000 555,000 555,000 - -

MAI - Maintenance 2,590,000 6,047,000 2,417,000 629,000 173,000

NON - Non-Aviation 510,000 370,520 1,543,080 1,734,400 355,000

OPS - Operations - 75,000 - - -

OTH - Other Aviation 1,049,000 3,506,000 5,482,000 6,604,000 216,000

POL - Police 5,137,500 6,422,274 28,606,000 7,705,000 250,000

SYS - Systems 4,467,921 550,000 915,000 3,053,000 6,516,000

TER - Terminals 13,082,616 88,300,053 107,408,125 70,766,000 72,965,250

AVI - Aviation Total $82,178,887 $147,847,297 $222,789,295 $274,518,825 $223,793,438

MAR - Marine $8,124,324 $4,516,000 $10,695,084 $19,000,000 $32,290,000

NAV - Navigation 7,668,764 8,903,178 14,956,600 8,605,000 50,000

PND - Industrial Development 15,982,705 27,363,845 34,601,818 14,330,955 3,848,928

FNA - Finance & Admin 3,034,500 3,415,000 3,755,000 3,061,500 1,710,000

LUP - Land Use Planning - 1,400,500 11,950,000 - -

PUB - Public Affairs - 406,000 - - -

ENR - Environmental - 100,000 - - -

Grand Total $134,791,645 $208,063,490 $308,713,936 $346,543,054 $273,195,775


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How to Trace Port Dollars

The financial structure of the Port is defined by certain dedicated Funds that are restricted to certain pur-poses and/or supported by specific business activity.

The Marine, Industrial Development, Navigation, Development Services & Information Technology and and Corporate Administration divisions are accounted for in the General and Bond Construction Funds.

The Aviation Division consists of Commercial Aviation (Portland International Airport) and General Aviation (Hillsboro and Troutdale airports). General Aviation is accounted for entirely in the General and Bond Con-struction Funds, while the Commercial Aviation division is accounted for entirely in the Airport Revenue, Airport Revenue Bond, Airport Construction, Customer Facility Charge, Passenger Facility Charge and Passenger Facility Charge Bonds Funds.

Operating Business Operating Divisions Enterprises Funds

Marine, Marine Terminals General FundIndustrial & Industrial Parks Bond Construction FundDevelopment

Navigation Dredge Oregon

Aviation General Aviation Airport Funds:Portland International Airport Revenue FundAirport (PDX) Airport Construction Fund

Airport Revenue Bond Fund

Customer Facility Charge(CFC) Fund:

CFC Fund

Passenger Facility Charge (PFC) Funds:

PFC FundPFC Bond Fund


20

Port

of Po

rtland

Ope

ratin

g Bud

get: A

dopte

d Bud

get 2

014-

15Su

mmar

y of O

pera

ting R

even

ues,

Perso

nal S

ervic

es an

d Mate

rial &

Ser

vices

Exp

endit

ures

by D

ivisio

n (1)

(Total

Por

t, not

divide

d by F

und s

tructu

re)

Mater

ials &

Ser

vices

Total

Oper

ating

Perso

nal

Long

shor

eCo

ntrac

ts &

Mater

ials &

Eq

uip R

ents,

Ma

nage

ment

Oper

ating

Reve

nues

Servi

ces

Labo

rPr

of. S

vcs.

Supp

lies

Utilit

iesRe

pair &

Fue

lIns

uran

ce&

Trav

elOt

her (

4)Ex

pend

iture

s

Oper

ating

Divi

sions

PDX

$201

,857,1

39

$44,2

27,17

4 $-

$2

7,948

,011

$4,34

1,070

$9

,229,8

64

$1,54

3,315

$1

,827,0

39

$1,30

0,183

$(

1,901

,370)

$88,5

15,28

7

Gene

ral A

viatio

n 3,

589,2

91

983,9

60

- 93

2,779

74

,446

206,8

00

135,4

96

41,72

8 18

,896

149,7

33

2,54

3,838

Marin

e 31

,633,8

88

10,93

9,674

2,

873,7

21

5,24

8,970

89

4,326

1,

114,9

30

366,8

14

604,9

16

921,7

60

2,44

6,018

25

,411,1

29

Indus

trial D

evelo

pmen

t 9,

747,4

17

2,82

3,233

-

1,61

4,871

59

,164

252,7

91

29,63

6 32

,233

162,5

76

419,3

98

5,39

3,902

Navig

ation

14,43

7,639

5,

156,4

83

- 85

3,536

95

0,092

57

,447

2,52

2,946

68

7,775

15

,204

13,40

0 10

,256,8

82

SubT

otal: O

pera

ting D

ivisio

ns $2

61,26

5,374

$6

4,130

,524

$2,87

3,721

$3

6,598

,167

$6,31

9,098

$1

0,861

,832

$4,59

8,207

$3

,193,6

91

$2,41

8,619

$1

,127,1

79

$132

,121,0

39

Corp

orate

Adm

inistr

ation

Exec

utive

Adm

inistr

ation

- 1,

278,9

28

- 10

,368

840

2,37

0 -

392,6

54

140,8

20

- 1,

825,9

79

Envir

onme

ntal A

ffairs

- 1,

367,5

17

- 1,

148,8

00

1,50

0 -

- -

138,1

35

85,47

7 2,

741,4

29

Publi

c Affa

irs -

3,35

6,295

-

606,4

99

10,35

0 -

- -

407,1

00

77,15

0 4,

457,3

94

Huma

n Res

ource

s -

2,16

5,806

-

1,00

8,674

5,

560

- -

4,34

2 46

3,463

35

2,650

4,

000,4

95

Lega

l -

2,41

9,283

-

115,0

04

5,10

4 8,

100

252

- 10

2,613

1,

008

2,65

1,364

Finan

cial &

Adm

inistr

ative

Ser

vices

(2)

85,00

0 7,

124,9

17

- 80

9,735

41

,922

5,09

2 12

,430

660

256,4

41

2,44

7,950

10

,699,1

47

SubT

otal: C

orpo

rate

Admi

nistra

tion

$85,0

00

$17,7

12,74

6 $-

$3

,699,0

80

$65,2

76

$15,5

62

$12,6

82

$397

,656

$1,50

8,572

$2

,964,2

35

$26,3

75,80

8

Deve

lopme

nt Se

rvice

s & In

forma

tion T

echn

ology

Engin

eerin

g $-

$1

0,119

,275

$-

$278

,104

$19,0

96

$996

$1

1,000

$-

$1

26,09

5 $9

22,40

8 $1

1,476

,974

Infor

matio

n Tec

hnolo

gy -

6,89

1,481

-

1,31

7,575

24

5,656

20

1,520

40

3,780

-

119,8

22

1,27

8,664

10

,458,4

98

Deve

lopme

ntal S

ervic

es A

dmini

strati

on -

758,7

66

- 17

2,550

98

4 -

- -

17,04

0 25

,000

974,3

40

SubT

otal: D

evelo

pmen

t Ser

vices

& IT

$-

$17,7

69,52

2 $-

$1

,768,2

29

$265

,736

$202

,516

$414

,780

$-

$262

,957

$2,22

6,072

$2

2,909

,812

SubT

otal

$261

,350,3

74

$99,6

12,79

2 $2

,873,7

21

$42,0

65,47

5 $6

,650,1

10

$11,0

79,91

0 $5

,025,6

69

$3,59

1,347

$4

,190,1

48

$6,31

7,486

$1

81,40

6,659

Othe

r Divi

sions

Othe

r Env

ironm

ental

(3)

$-

$-

$-

$2,82

2,403

$-

$-

$-

$-

$-

$-

$2

,822,4

03

SubT

otal: O

ther D

ivisio

ns $-

$-

$-

$2

,822,4

03

$-

$-

$-

$-

$-

$-

$2,82

2,403

Total

$2

61,35

0,374

$9

9,612

,792

$2,87

3,721

$4

4,887

,878

$6,65

0,110

$1

1,079

,910

$5,02

5,669

$3

,591,3

47

$4,19

0,148

$6

,317,4

86

$184

,229,0

62

(1)E

xpen

ditur

es ex

clude

inter

depa

rtmen

tal tr

ansfe

rs, al

locate

d sup

port

servi

ces,

capit

alize

d cos

ts, de

prec

iation

and c

osts

of pr

oper

ty so

ld.

(2)R

even

ue w

ithin

Finan

cial &

Adm

inistr

ative

Ser

vices

is pr

imar

ily de

rived

from

contr

ibutio

ns fr

om ot

her lo

cal g

over

nmen

ts pa

rticipa

ting i

n the

Por

t’s D

BE/M

entor

prog

ram

and o

pera

ting g

rants

.

(3)“O

ther E

nviro

nmen

tal” in

clude

s cos

ts wh

ich ar

e not

direc

tly at

tributa

ble to

spec

ific P

ort fa

cilitie

s or w

hich p

ertai

n to d

iscon

tinue

d ope

ratio

ns.

(4)“O

ther”

expe

nses

inclu

de re

nt, so

ftwar

e and

hard

ware

, PDX

drain

age f

ees a

nd po

st-re

tireme

nt be

nefits

.


21

Summ

ary o

f Res

ource

s and

Req

uirem

ents

by F

und

Oper

ating

Fun

dsCo

nstru

ction

Fun

dsDe

bt Se

rvice

Fun

ds

Reso

urce

s & R

equir

emen

tsTo

tal -

Airp

ort

Bond

Airp

ort

Airp

ort

All F

unds

Gen

eral

Reve

nue

Cons

tructi

onCo

nstru

ction

CFC

PFC

Reve

nue B

ond

PFC

Bond

Reso

urce

s

Begin

ning B

alanc

e $3

15,27

9,363

10

7,627

,547

$77,8

00,44

3 $1

0,000

,000

$51,1

08,45

9 $-

$2

7,827

,301

$25,4

39,57

7 $1

5,476

,035

Oper

ating

Rev

enue

261,3

50,37

4 59

,493,2

34

201,8

57,13

9 -

- -

- -

-

Gran

ts/Int

eres

t Inco

me/O

ther

79,06

7,043

1,

405,8

12

512,2

36

20,09

3,986

11

,586,7

97

13,76

4,113

31

,650,1

95

22,78

8 31

,116

Prop

erty

Taxe

s 9,

890,0

76

- -

9,89

0,076

-

- -

- -

Bond

and O

ther D

ebt P

roce

eds

107,5

00,00

0 -

- -

100,0

00,00

0 -

- 7,

500,0

00

-

SubT

otal -

Reso

urce

s $7

73,08

6,855

16

8,526

,594

$280

,169,8

19

$39,9

84,06

2 $1

62,69

5,256

$1

3,764

,113

$59,4

77,49

6 $3

2,962

,365

$15,5

07,15

1

Tran

sfers

from

Othe

r Fun

ds $1

82,96

8,793

38

,746,8

37

$1,92

2,992

$3

0,242

,131

$39,8

16,00

3 $6

,218,4

48

$-

$51,4

17,50

5 $1

4,604

,877

Total

Res

ource

s $9

56,05

5,649

20

7,273

,430

$282

,092,8

11

$70,2

26,19

3 $2

02,51

1,260

$1

9,982

,561

$59,4

77,49

6 $8

4,379

,870

$30,1

12,02

8

Requ

ireme

nts

Expe

nditu

res (

by di

vision

)FT

E(To

tal)

(Ope

ratin

g)(C

apita

l)

Admi

nistra

tion

273.5

$5

3,206

,621

49,28

5,621

$-

$3

,921,0

00

$-

$-

$-

$-

$-

Marin

e 84

.0 29

,927,1

29

25,41

1,129

-

4,51

6,000

-

- -

- -

Indus

trial D

evelo

pmen

t 23

.0 34

,158,2

47

5,39

3,902

-

28,76

4,345

-

- -

- -

Navig

ation

38.5

19,16

0,060

10

,256,8

82

- 8,

903,1

78

- -

- -

-

Gene

ral A

viatio

n 8.

0 16

,655,5

08

2,54

3,838

-

14,11

1,670

-

- -

- -

Comm

ercia

l Avia

tion

362.3

23

6,362

,584

- 88

,515,2

87

- 14

7,847

,297

- -

- -

Capit

alize

d Lab

or -

(11,6

85,04

8) -

- (3

,064,5

51)

(8,62

0,498

) -

- -

-

SubT

otal -

Expe

nditu

res

789.3

$3

77,78

5,101

92

,891,3

73

$88,5

15,28

7 $5

7,151

,642

$139

,226,7

99

$-

$-

$-

$-

Othe

r Req

uirem

ents

Tran

sfers

to Ot

her F

unds

$182

,968,7

93

23,68

8,343

$1

14,37

2,525

$3

,074,5

51

$14,1

20,49

8 $1

2,650

,000

$15,0

62,87

7 $-

$-

Othe

r Env

ironm

ental

2,82

2,403

2,

822,4

03

- -

- -

- -

-

Othe

r 1,

520,0

00

5,00

0 5,

000

- 1,

500,0

00

- 10

,000

- -

Debt

Servi

ce P

ayme

nts 77

,109,9

57

11,03

3,671

-

- -

- -

51,44

0,293

14

,635,9

93

Conti

ngen

cy 26

5,433

,782

76,83

2,640

79

,200,0

00

10,00

0,000

47

,663,9

63

7,33

2,561

44

,404,6

19

- -

Unap

prop

riated

End

ing B

alanc

e 48

,415,6

12

- -

- -

- 32

,939,5

77

15,47

6,035

Total

Req

uirem

ents

$956

,055,6

49

207,2

73,43

0 $2

82,09

2,811

$7

0,226

,193

$202

,511,2

60

$19,9

82,56

1 $5

9,477

,496

$84,3

79,87

0 $3

0,112

,028


22

Summary Highlights (Budget Basis)Adopted Proposed Approved Adopted

Resources & Requirements Actual Actual Budget Budget Budget Budget Percent

2011-12 2012-13 2013-14 2014-15 2014-15 2014-15 Change

Beginning Balance $318,268,084 $345,747,114 $296,046,124 $315,279,363 $315,279,363 $315,279,363 6%

Operating Revenue 233,355,942 236,267,631 262,758,963 259,419,411 259,333,440 261,350,374 (1%)

Grants/Interest Income/Other 82,299,119 64,106,953 53,524,276 58,919,641 79,067,043 79,067,043 48%

Property Taxes 9,581,987 9,703,183 9,744,994 9,890,076 9,890,076 9,890,076 1%

Bond and Other Debt Proceeds 119,465,334 86,715,829 50,600,000 107,500,000 107,500,000 107,500,000 112%

SubTotal $762,970,466 $742,540,710 $672,674,358 $751,008,491 $771,069,921 $773,086,855 15%

Transfers $232,832,765 $147,405,299 $176,769,979 $199,948,913 $182,950,809 $182,968,793 4%

Total Resources $995,803,230 $889,946,008 $849,444,337 $950,957,404 $954,020,730 $956,055,649 13%

Adopted Proposed Approved Adopted

Summary Of Requirements - All Funds Actual Actual Budget Budget Budget Budget Percent

2011-12 2012-13 2013-14 2014-15 2014-15 2014-15 Change

Expenditures

General Fund $81,288,486 $81,742,251 $89,065,196 $92,004,559 $91,574,602 $92,891,373 4%

Airport Revenue Fund 75,976,052 78,267,650 84,314,286 88,412,209 88,480,287 88,515,287 5%

Bond Construction Fund 46,012,555 15,177,382 49,858,683 53,989,237 57,151,642 57,151,642 15%

Airport Construction Fund 51,409,330 60,162,268 73,710,798 138,376,799 139,226,799 139,226,799 89%

SubTotal $254,686,423 $235,349,551 $296,948,964 $372,782,805 $376,433,330 $377,785,101 27%

Transfers $232,832,765 $147,405,299 $176,769,979 $199,948,913 $182,950,809 $182,968,793 4%

System Devel Charges / Other 53,263,649 467,715 45,000 15,000 1,515,000 1,520,000 3278%

Other Environmental 5,880,542 3,996,354 3,905,346 2,822,403 2,822,403 2,822,403 (28%)

Debt Service Payments 95,674,738 148,742,732 63,960,941 66,076,286 66,076,286 66,076,286 3%

Long - Term Debt Payments 7,717,998 10,005,336 10,225,125 11,033,671 11,033,671 11,033,671 8%

Contingency - - 256,673,369 249,862,713 264,773,619 265,433,782 3%

Unappropriated Balance 345,747,116 343,979,023 40,915,612 48,415,612 48,415,612 48,415,612 18%

Total Requirements $995,803,230 $889,946,008 $849,444,337 $950,957,404 $954,020,730 $956,055,649 13%

Percent Change Compares Adopted Budget 2013-14 to Adopted Budget 2014-15

FY 2014-15 Summary Of Operating and Capital Requirements By Fund:

Operating Capital

Expenditures Expenditures Total

General Fund $92,891,373 $- $92,891,373

Airport Revenue Fund 88,515,287 - 88,515,287

Bond Construction Fund - 57,151,642 57,151,642

Airport Construction Fund - 139,226,799 139,226,799

Total Port $181,406,659 $196,378,442 $377,785,101


23

Summary Highlights (Budget Basis)Adopted Proposed Approved Adopted

Operating Contributions by Division Actual Actual Budget Budget Budget Budget

2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Marine $8,855,584 $5,406,370 $3,625,625 $4,432,948 $5,349,713 $5,876,753

Industrial Development (1,521,995) 627,950 22,435,303 5,051,467 9,747,417 9,747,417

Navigation 3,352,338 2,435,128 2,809,645 4,060,055 4,060,055 4,180,757

Commercial Aviation 104,949,264 108,407,758 105,728,446 113,478,480 113,324,432 113,341,853

General Aviation 854,566 892,539 1,244,742 1,045,453 1,045,453 1,045,453

Administration (Operating Revenues Only) 85,352 130,236 153,000 85,000 85,000 85,000

Administration (Operating Expenditures Only) (40,483,705) (41,642,250) (46,617,280) (49,150,761) (49,285,621) (49,285,621)

Total $76,091,403 $76,257,730 $89,379,481 $79,002,643 $84,326,449 $84,991,612


Administrative Operating Expenditures Actual Actual Budget Budget Budget Budget

by Division 2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Engineering $10,625,136 $9,901,503 $10,885,506 $11,476,974 $11,476,974 $11,476,974

Development Services & Information Technology 9,034,964 9,201,191 10,856,357 11,424,827 11,432,838 11,432,838

Administrative 20,823,605 22,539,556 24,875,417 26,248,960 26,375,808 26,375,808

Total Administration $40,483,705 $41,642,250 $46,617,280 $49,150,761 $49,285,621 $49,285,621


24


25

General Port Operations

From a financial perspective, the Budget document reflects two primary divisions, General Port Opera-tions and Aviation. The distinction is a financial one rather than operational, but it serves to help explain the Port’s Budget and financial information.

General Port Operations include the following: Marine, Industrial Development, Navigation, Development Services and Information Technology, and the Corporate Administration Divisions. The primary resources for General Port Operations are from Marine and Industrial Development operating revenues, property sales and leases, and the Port’s property tax levy.

Aviation is comprised of Portland International Airport (PDX) and two General Aviation reliever airports located in Hillsboro and Troutdale. The General Aviation reliever system is included in the Port’s General Fund.

PDX resources cannot be commingled with any other resources of the Port, and are restricted for use at Aviation facilities in accordance with FAA regulations and Airport Revenue Bond Ordinances. PDX re-sources can be used to fund the General Aviation reliever system in certain circumstances and a transfer of resources is made from the Airport Revenue Fund to the Port’s Bond Construction Fund for that pur-pose.


26


27

General Fund

The General Fund is used to account for the general operations of the Port. Subject to the restrictions of local budget law, its assets may be transferred to another fund for any authorized Port purpose.

The following summary shows the principal resources and requirements for the General Fund, as well as information on specific Port operations. The Port manages all General Fund activities as a portfolio designed to fulfill the Port’s mission while balancing financial resources and requirements.

While the Port’s General Aviation airports are part of the General Fund, from a financial perspective, the Airport Revenue Fund subsidizes General Aviation activities that are not funded by General Aviation op-erations or FAA grants. This funding is accomplished by a transfer from the Airport Revenue Fund to the Bond Construction Fund.

The General Fund summary is followed by specific information on Marine, Industrial Development, Gener-al Aviation, Development Services and Information Technology, Navigation, and Corporate Administration. Capital requirements for these areas are shown in the Bond Construction Fund.

General Fund Revenues are primarily generated in the Marine and Industrial Development divisions. The forecast for General Fund operating revenue is based on assumptions of transactions closing as well as the timing of those transactions; changes in either set of assumptions can have a material impact on the actual financial results accomplished.


28

General Fund - ResourcesAdopted Proposed Approved Adopted

Resources & Requirements Actual Actual Budget Budget Budget Budget

2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Resources

Beginning Working Capital $170,679,108 $147,908,350 $148,147,409 $107,627,547 $107,627,547 $107,627,547

Operating Revenue (by Division)

General Aviation

Operating Revenue $980,878 $924,435 $1,067,204 $1,071,204 $1,071,204 $1,071,204

Service Revenue 24,407 17,188 16,240 16,240 16,240 16,240

Rental & Concessions/Other Revenue 1,987,850 2,109,648 2,269,009 2,501,847 2,501,847 2,501,847

Total General Aviation $2,993,135 $3,051,271 $3,352,453 $3,589,291 $3,589,291 $3,589,291

Marine

Operating Revenue $10,384,801 $9,666,815 $9,567,189 $9,371,326 $9,371,326 $9,371,326

Service Revenue 210,163 218,086 244,600 284,960 284,960 284,960

Rental & Concessions 18,523,858 19,526,693 14,876,242 15,300,181 15,300,181 15,300,181

Other Revenue 243,499 561,980 5,113,821 5,950,381 5,950,381 6,677,421

Total Marine $29,362,321 $29,973,573 $29,801,852 $30,906,848 $30,906,848 $31,633,888

Industrial Development

Operating Revenue $473,115 $496,102 $622,169 $622,169 $622,169 $622,169

Service Revenue 7,526 5,312 32,117 32,117 32,117 32,117


Land Sale Proceeds - 1,528,970 23,675,408 6,182,000 6,182,000 6,182,000

Other Revenue 182,895 177,652 145,318 155,318 155,318 155,318

Total Industrial Development $2,881,750 $4,683,093 $27,037,438 $9,747,417 $9,747,417 $9,747,417

Navigation


Other Revenue 16,161 - - - - -

Total Navigation $17,108,069 $11,754,050 $12,371,488 $13,200,166 $13,200,166 $14,437,639

Corporate Administration

Other Revenue $85,352 $130,236 $153,000 $85,000 $85,000 $85,000

Total Administration $85,352 $130,236 $153,000 $85,000 $85,000 $85,000

Total Operating Revenue $52,430,627 $49,592,223 $72,716,231 $57,528,722 $57,528,722 $59,493,234


29

General Fund - Resources (Cont’d)

Note: As a part of revisions adopted by Commission during the 2012/13 fiscal year, Property Taxes are now budget-ed and accounted for in the Port’s Bond Construction Fund.



2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Resources (Continued)

Other Resources

Fixed Asset Sales/Other $7,247 $709,017 $- $- $- $-

Interest On Investments 2,513,779 1,003,227 1,291,050 1,405,812 1,405,812 1,405,812

Bonds and Other Debt Proceeds 5,135,698 1,184,698 - - - -

Federal/State Grants/Other 21,317 94,598 - - - -

Total Other $7,678,042 $2,991,540 $1,291,050 $1,405,812 $1,405,812 $1,405,812

Interfund Reimbursements-from

Airport Revenue Fund $20,623,392 $24,707,921 $22,545,025 $25,167,448 $25,020,465 $25,095,801

Bond Construction Fund 4,229,986 4,981,885 2,731,763 3,044,775 3,044,775 3,044,775


Total Interfund Reimbursements $33,264,114 $38,133,189 $32,620,846 $35,574,217 $35,427,235 $35,502,570

Cash Transfers from Other Funds:

Airport Revenue Fund $3,405,612 $134,615 $3,108,708 $3,244,267 $3,244,267 $3,244,267

Total Cash Transfers from Other Funds $3,405,612 $134,615 $3,108,708 $3,244,267 $3,244,267 $3,244,267

Limited Tax Pension Bonds

Taxes

Property Taxes $9,545,987 $- $- $- $- $-

Interest On Taxes 36,000 - - - - -

Total Taxes $9,581,987 $- $- $- $- $-

Total Resources $277,039,489 $238,759,917 $257,884,245 $205,380,565 $205,233,582 $207,273,430


30

General Fund - RequirementsAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Requirements

Expenditures By Division

Administration $40,483,704 $41,642,250 $46,617,280 $49,150,761 $49,285,621 $49,285,621

Marine 20,506,737 24,567,204 26,176,228 26,473,899 25,211,129 25,411,129

Industrial Development 4,403,745 4,055,144 4,602,135 4,695,949 5,393,902 5,393,902

Navigation 13,755,731 9,318,922 9,561,843 9,140,112 9,140,112 10,256,882

General Aviation 2,138,569 2,158,732 2,107,711 2,543,838 2,543,838 2,543,838

Operating Expenditures $81,288,486 $81,742,251 $89,065,196 $92,004,559 $91,574,602 $92,891,373

Interfund Reimbursements-to

Airport Revenue Fund $93,023 $433,016 $312,718 $484,087 $484,087 $484,713

Total Interfund Reimbursements $93,023 $433,016 $312,718 $484,087 $484,087 $484,713

Operating Expenditures & Reimbursements $81,381,510 $82,175,267 $89,377,915 $92,488,647 $92,058,689 $93,376,086

Other Requirements

Other Environmental $5,880,542 $3,996,354 $3,905,346 $2,822,403 $2,822,403 $2,822,403

Long-Term Debt Payments 7,717,998 10,005,336 10,225,125 11,033,671 11,033,671 11,033,671

System Devel Charges / Other - 173,212 30,000 - - 5,000

Total Other Requirements $13,598,540 $14,174,901 $14,160,471 $13,856,074 $13,856,074 $13,861,074

Cash Transfers to Other Funds

Bond Construction Fund $34,000,000 $5,000,000 $20,822,989 $40,021,307 $23,203,630 $23,203,630

Airport Revenue Fund 151,089 369,106 322,687 13,534 345 -

Total Cash Transfers to Other Funds $34,151,089 $5,369,106 $21,145,675 $40,034,841 $23,203,975 $23,203,630

Total Other Req & Cash Transfers $47,749,629 $19,544,007 $35,306,146 $53,890,915 $37,060,049 $37,064,704

Contingency $- $- $133,200,183 $59,001,003 $76,114,844 $76,832,640

Ending Fund Balance $147,908,351 $137,040,643 $- $- $- $-

Total Requirements $277,039,489 $238,759,917 $257,884,245 $205,380,565 $205,233,582 $207,273,430

Long -Term Debt Payments

City Of Portland L.I.D. $853,535 $854,890 $828,702 $843,263 $843,263 $843,263

Connect Oregon 200,000 942,700 824,230 942,700 942,700 942,700

State Of Oregon Notes: OBDD 425,764 879,293 374,965 837,287 837,287 837,287

Limited Tax Pension Bonds 6,056,421 6,326,599 6,308,204 6,584,413 6,584,413 6,584,413

Dredge Oregon Repower Loan - 839,123 1,437,094 1,402,692 1,402,692 1,402,692

Ramp Barge Loan / Capital Lease 182,278 162,731 451,930 423,317 423,317 423,317

Total Long-Term Debt Payments $7,717,998 $10,005,336 $10,225,125 $11,033,671 $11,033,671 $11,033,671


31

Marine

The Port owns four marine terminals handling a diverse mix of cargo, including grain, mineral bulk, liquid bulk, automobiles, project cargo, breakbulk cargo, and containers. All four terminals are in close proximity to major rail, highway, and inland barge connections, offering world-class intermodal transportation flexibility.

In May 2010, the Port entered into a 25-year lease with International Container Terminal Services, Inc. (ICTSI Oregon Inc.) for the operation of the 200 acre container facility at Terminal 6. The lease includes the intermodal yard and the slab-steel bulk operation.

All of the Port’s major marine customers are currently under long-term lease agreements.

The Port’s goal is to use its waterfront marine acreage to achieve its highest and best use in order to meet the Port’s public cargo mission. In doing so, the Port seeks to establish longterm customer relationships with entities that have sustainable business models and who are committed to environmental stewardship of their respective leaseholds and adjacent waterways.

Business Plan Initiatives

Marine Marketing and Operations

• Work collaboratively with ICTSI Oregon, Inc. (ICTSI) to increase Terminal 6 container throughput by retaining and growing existing liner services and by attracting new services to ports that currently are underserved. Areas of focus include increased transpacific import and export capacity dedicated to ports in Japan, Korea, China, Southeast Asia and West Asia.

• Continue to improve efficiency and cost effectiveness of maintenance and security services provid-ed to ICTSI under the terms of the lease.

• Work with existing bulk and auto tenants to increase volumes through active planning in longterm facility design & capacity-expanding improvements and efficient rail access.

• Develop new business at Terminals 2 and 4, focusing on project cargos, liquid and dry bulks, roll-on/roll-off cargo (ro-ro) and steel.

• Working with business stakeholders and up-river interests, develop and/or facilitate the develop-ment of neardock and offdock container transload facilities in support of international import and export cargo.


32

Infrastructure Development

• As the Oregon non-Federal sponsor to the U.S. Army Corps of Engineers, participate in the man-agement and maintenance of the 43-foot Columbia River navigation channel, and the planning & design for the future 43- foot navigation channel on the Willamette River.

• Maintain marine terminal berths to their authorized depths.

• Complete a series of Terminal 6 infrastructure projects related to gantry crane rehabilitation.

• Implement the updated rail master plan by completing a grade separation project on North Rivergate Blvd. as one of the highest priority projects to support Port growth over the next 10 to 20 years.

• Continue development of an asset management program targeted on primary marine terminal infra-structure asset classes.


Marine


Containers*(TEU)Autos(Units)Breakbulk(Short Tons)Grain Bulk(Short Tons)Mineral Bulk(Short Tons)

4,996,121

154,773 154,324 110,321

3,615,868 4,188,783 3,858,090

4,861,192 5,198,500

(28.5%)

(7.9%)

6.9%

Change

170,177 210,000 192,500

270,795 280,000 256,500

(8.3%)

(8.4%)

Description


33

Marine - Requirements SummaryAdopted Proposed Approved Adopted

Fund: General Actual Actual Budget Budget Budget Budget

2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Requirements Summary:

Personal Services $9,811,739 $10,202,702 $11,105,750 $11,563,634 $10,939,674 $10,939,674

Materials and Services 10,694,998 14,364,502 15,070,477 14,910,266 14,271,455 14,471,455


Interfund Reimbursements $44,195 $313,457 $188,212 $346,005 $346,005 $346,005


Materials and Services Requirements

Longshore Labor $1,765,340 $1,812,464 $1,978,150 $2,873,721 $2,873,721 $2,873,721

Contract & Consulting Services 4,147,852 5,078,965 6,133,338 5,653,970 5,048,970 5,248,970

Materials and Supplies 818,839 860,066 1,104,435 898,022 894,326 894,326

Utilities 1,035,275 1,101,224 1,119,939 1,121,938 1,114,930 1,114,930

Equipment, Fuel and Lubricants 255,568 293,575 397,826 370,318 366,814 366,814

Insurance 596,123 992,982 720,283 623,523 604,916 604,916

Management & Travel Expenses 598,338 542,128 853,712 922,756 921,760 921,760

Miscellaneous Expenses* 1,477,663 3,683,096 2,762,794 2,446,018 2,446,018 2,446,018

Total Materials & Services $10,694,998 $14,364,502 $15,070,477 $14,910,266 $14,271,455 $14,471,455

Interfund Reimbursements



* Includes: Rent, Equipment Repairs,Drainage Assessments, Software, Expense, Postage, Bad Debts, Discounts, etc.


34

Marine - Personnel ServicesFull Time Full Time

Equiv Adopted Equiv Adopted

Position Actual Actual Positions Budget Positions Budget

Grade Title 2011-12 2012-13 2013-14 2013-14 2014-15 2014-15

Marine

80-82 Administration $1,408,785 $1,648,584 15.0 $1,633,440 12.0 $1,391,309

75-79 Admin Professional/Tech 982,915 884,665 14.0 1,090,771 15.0 1,326,164

71-74 Admin Support Staff 108,488 103,291 2.0 92,558 3.0 147,681

-- Interns - 4,578 - 8,960 - 9,603

-- Boilermakers/Machinist 132,469 119,719 2.0 145,711 2.0 149,968

-- Carpenters 131,032 135,509 2.0 139,430 2.0 143,497

-- Electrical Foreman 213,368 162,280 2.0 166,972 2.0 171,734

-- Electricians 788,107 908,458 13.0 1,002,564 13.0 1,032,717

-- Laborers 343,529 416,072 7.0 457,350 6.3 431,497

-- Landscape Gardners 319,064 318,790 6.0 326,108 - -

-- Operating Engineers 18,471 37,847 - - 0.7 49,616

-- Painters 69,200 53,518 1.0 71,009 1.0 73,034

-- Plumbers 203,825 205,315 3.0 222,025 3.0 228,571

-- Security 1,366,759 1,425,047 25.0 1,464,782 24.0 1,391,104

Subtotal Marine $6,086,012 $6,423,674 92.0 $6,821,681 84.0 $6,546,494

Total Overtime $613,122 $620,158 - $732,385 - $698,541

Accrued Labor 35,526 527 - 33,309 - 98,888

Fringe Benefits 3,077,080 3,158,343 - 3,518,375 - 3,595,751

Total Marine $9,811,739 $10,202,702 92.0 $11,105,750 84.0 $10,939,674


35


The Port is one of the largest developers of industrial property in the region. Within its 10,000 acres of prop-erty holdings, the Port oversees five business and industrial parks: Rivergate Industrial District, Portland International Center, Swan Island Industrial Park, Troutdale Reynolds Industrial Park (TRIP), and Gresham Vista Business Park.

Business Plan InitiativesReal Estate

• Continue to proactively market Port real estate assets in the Rivergate Industrial District, Swan Is-land Industrial Park, Portland International Center, Troutdale Reynolds Industrial Park (TRIP) and Gresham Vista Business Park with a focus on attracting traded sector businesses.

• Begin implementing the first phase of the North Airport Way redevelopment plan, which includes the removal of obsolete buildings in order to focus on economically viable business aviation facilities at PDX.

• Manage property transactions to support both Aviation and Marine lines of business.

• Work with Metro, Portland Development Commission, Greater Portland Inc., Business Oregon, and other public and private entities to create alignment around an economic development plan that identifies priority industrial sites of significance for manufacturing, transportation and trade-related uses.

• Advocate for public resources, including regulatory tools, to stimulate brownfield redevelopment projects.

• Identify and, as appropriate, acquire strategic industrial property that supports the region’s traded sector economy.

Infrastructure Development

• Continue to work with the Oregon Department of Transportation and the City of Troutdale on I-84 Interchange and TRIP-related road improvements.

• Expand partnership with the City of Gresham to support their efforts to create a wetland mitigation bank, which will provide mitigation credits for Port development and construction projects at PDX, Troutdale Airport and Gresham Vista Business Park.

Facility and Land Use Planning

• Continue executing the TRIP multi-year development plan to secure necessary natural resource permits for roadway and lot improvements, which will bring 183 acres of industrial property to market by 2017.


36

Industrial Development - Requirements SummaryAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15








Contract & Consulting Services $1,513,206 $1,409,521 $1,619,121 $1,584,871 $1,614,871 $1,614,871

Materials and Supplies 48,868 53,101 51,768 55,468 59,164 59,164

Utilities 245,011 229,917 250,032 245,783 252,791 252,791


Insurance 16,886 15,852 17,634 13,627 32,233 32,233


Miscellaneous Expenses* 350,058 267,625 418,129 419,398 419,398 419,398







37

Industrial Development - Personnel ServicesFull Time Full Time



Grade Title 2011-12 2012-13 2013-14 2013-14 2014-15 2014-15


80-82 Administration $492,065 $462,622 4.0 $474,985 4.0 $500,378

75-79 Admin Professional/Tech 553,326 567,098 7.0 580,909 8.0 686,816

71-74 Admin Support Staff - 18,799 1.0 50,324 1.0 52,589

-- Landscape Gardners - - - - 6.0 335,840

-- Interns - - - - - 11,000

Subtotal Industrial Development $1,045,392 $1,048,520 12.0 $1,106,218 19.0 $1,586,622

Total Overtime $- $- - $- - $-

Accrued Labor 5,248 857 - 4,487 - 22,286

Fringe Benefits 475,155 431,182 - 473,221 - 684,941

Total Industrial Development $1,525,794 $1,480,559 12.0 $1,583,926 19.0 $2,293,849

2,293,849

Land Use Planning

80-82 Administration $92,864 $99,361 1.0 $101,390 1.0 $105,445


71-74 Admin Support Staff - 6,276 - - - -

-- Interns 11,239 11,562 - 21,840 - 22,464

Subtotal Land Use Planning $389,160 $336,683 4.0 $349,066 4.0 $371,262


Accrued Labor 2,890 (145) - 1,417 - 4,957

Fringe Benefits 196,498 152,447 - 162,210 - 153,165

Total Land Use Planning $588,547 $488,985 4.0 $512,693 4.0 $529,384

529,384

Subtotal Industrial Development & LUP $1,434,552 $1,385,203 16.0 $1,455,284 23.0 $1,957,884


Accrued Labor 8,138 712 - 5,905 - 27,243

Fringe Benefits 671,652 577,603 - 635,431 - 838,106

Total Industrial Development & LUP $2,114,342 $1,963,518 16.0 $2,096,620 23.0 $2,823,233


38


39

General Aviation

The role of the General Aviation airports is to function as a reliever system to Portland International Air-port (PDX). By serving the needs of corporate and private aircraft customers, the airports help preserve capacity for commercial operations at PDX. The Port of Portland owns two General Aviation airports: Hillsboro (HIO) and Troutdale (TTD).

Capital requirements shown in the Bond Construction Fund for these airports are funded through a com-bination of earnings from General Aviation operations, FAA grants and transfers from the Airport Revenue Fund.


FacilitiesGeneral Aviation will develop and maintain high quality airport facilities while ensuring capacity for future growth. Facility development programs will rely on and incorporate information from established master plans, capacity preservation measures, environmental policies, and sustainability goals as a guide for growth. Upon receiving FAA approval, construction of the HIO parallel runway (12L/30R) will begin, in accordance with the master plan and recent environmental assessment and analysis.

FinancialGeneral Aviation will continue to work across a broad front to increase existing lease revenues, develop new revenue sources, control operational costs and update the rates & charges fee structure at both HIO and TTD.

EnvironmentalGeneral Aviation works to meet or exceed all applicable federal, state and local environmental regulations and carries forward its commitment to environmentally responsible and sustainable operations. Initiatives include the following:

• Mitigate for low-quality wetlands removed during the construction of the HIO parallel runway by part-nering with Oregon Department of Transportation (ODOT) and Jackson Bottom Wetland Preserve to create and enhance high-quality wetlands at Jackson Bottom (compensatory mitigation).

• Implement aircraft and pavement de-icing policies and procedures in accordance with the most re-cent storm water permit for Hillsboro Airport.


40

General Aviation - Requirements SummaryAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15


Personal Services $930,136 $887,992 $965,990 $983,960 $983,960 $983,960






Contract & Consulting Services $395,401 $469,608 $500,990 $932,779 $932,779 $932,779


Utilities 236,411 238,512 218,200 206,800 206,800 206,800


Insurance 48,465 (41,038) 46,149 41,728 41,728 41,728


Miscellaneous Expenses* 218,494 323,519 149,752 149,733 149,733 149,733







41

General Aviation - Personnel ServicesFull Time Full Time



Grade Title 2011-12 2012-13 2013-14 2013-14 2014-15 2014-15

General Aviation

80-82 Administration $99,662 $102,132 1.0 $105,102 1.0 $109,306


71-74 Admin Support Staff - - - - - -

-- Interns 30,624 4,876 - 33,280 - 15,080

-- Maintenance 260,042 261,643 4.0 260,621 4.0 265,827

Subtotal General Aviation $588,412 $577,595 8.0 $612,822 8.0 $625,315

Total Overtime $30,302 $25,174 - $30,000 - $30,000

Accrued Labor 3,426 (53) - 2,770 - 8,889

Fringe Benefits 307,997 285,276 - 320,398 - 319,756

Total General Aviation $930,136 $887,992 8.0 $965,990 8.0 $983,960


42


43

Development Services and Information TechnologyDevelopment Services and Information Technology are responsible for the Engineering, Information Tech-nology, Development Services Administration and Navigation Divisions (see Navigation).

Engineering The Engineering Division provides three major services to the Port capital construction program: project management, professional engineering design services, and construction contract management. In addi-tion, the Engineering Division provides technical support for the physical asset infrastructure of the Port.

Staffing changes to accommodate the capital program include expansion of the project management and facility engineering groups. Contracted services will supplement in-house resources to meet the varying capital requirements. Ongoing evaluation of the need for staff resources versus contracted resources will occur to best meet the needs of the Port’s capital program.

Industry Outlook

External factors that will significantly influence the division’s business environment and impact major pro-grams include:

• Trends in Aviation and Marine businesses continue to affect the capital program. Emphasis on cost highlights the need to push for further improvements in project planning and delivery. Opening proj-ects in a timely manner is essential to effective utilization of engineering staff resources.

• The concept of sustainability will continue to be incorporated into Port facility development design and construction as appropriate.

• Construction costs, which decreased due to the soft economy, may increase due to the volatility of fuel and material costs. This volatility creates a challenging cost management environment, espe-cially for budgeting early in the project development phase. As activity in the construction industry increases and the economy rebounds, prices for construction work will likely increase.

• Encouraging and developing a diverse and sustainable workforce and increasing DMWESB partici-pation on Port projects will continue to be incorporated into design and construction contracts.

• Portfolio management continues to develop as a mechanism by which projects are prioritized and sequenced to meet strategic plans, resource requirements and availability.

• Asset preservation projects continue to be prominently represented within the portfolio. Maintaining existing assets to serve core mission objectives will remain a priority.

Capital Program Assumptions

Aviation:

• Construction of runway and taxiway improvement projects at Hillsboro will continue.

• The parallel runway at Hillsboro Airport will be under construction.

• The expansion of concourse E and balancing of airline loads in the terminal will be in design.

• A new rental car quick turnaround (QTA) facility will be in design.


44

• Design and construction for the redevelopment of PDX concession and common spaces will be underway.

• Several PDX apron and roadway pavement rehabilitation projects will be underway or complete.

• Cascade overpass reconstruction, terminal roadway rehabilitation and Airport Way micro surfacing will be complete.

• Several Port facility roof rehabilitations will be underway or complete.

• Design and bidding for airfield pavement rehabilitation projects will be complete, and construction will be underway.

• Taxiway E North rehabilitation will be under construction.

• Terminal carpet replacement project will be under construction.

• Design for the PDX access control system replacement project will be complete, and construction will be underway.

Marine and Industrial Development:

• Planning and design of Phase II Troutdale Reynolds Industrial Park infrastructure improvements will be complete. Swigert Way extension and improvement of Graham and Sundial Roads will be complete.

• Master planning for Gresham Vista Business Park will be complete, and some site development may be underway.

Navigation:

• Pending final approval from the U.S. Army Corps of Engineers, the Port will replace the scow B-22 barge and reconfigure the Ivanoff.

Seismic Vulnerability & Emergency Preparedness

• The Port will assess the seismic vulnerability of its facilities and complete development of a portfolio of seismic retrofit projects for critical facilities.

• The engineering department will complete an emergency preparedness and business continuity plan.

• Key engineering staff will be trained and certified to assess facilities following a seismic event.


45

Information Technology

The Information Technology (IT) department contributes to the Port’s success by delivering effective tech-nology solutions and providing information services. The department has four primary program areas: Technology Operations, Business Solutions, Information Management and Information Security. The IT department provides services that support all internal Port business units as well as the Port’s customers, partners and vendors.

Industry Outlook

External factors that will significantly impact the department’s business environment and program areas include:

• Increasing cyber security threats and regulatory requirements involving the protection of highly sen-sitive Port information and technology systems.

• The growing demand to integrate new consumer oriented and employee owned technologies into the corporate environment.

• Opportunities to reduce capital expenditures and quickly implement new innovative solutions by leveraging maturing “cloud computing” technologies.

• The need to increase access to Port data and systems for the Port’s mobile workforce.

Capital Program Assumptions

General Fund:

• Product selection and the implementation of an enterprise project and portfolio management system will begin.

• An upgrade to the technology infrastructure used to backup critical Port electronic data will be com-plete.

• Lifecycle replacements of the Port’s voice and data network systems required to maintain vendor support will be complete.

• A large quantity of out-of-warranty desktop and laptop computers will be replaced.

• Enhancements and replacements to the audio/visual equipment in the Port’s headquarters building will be complete.

• An upgrade to the case management software used by the Port’s Legal department will be complete.

Aviation:

• Technology enhancements to the Port’s Communications Center providing dispatch services for emergency response will be complete.

• Upgrades to the parking revenue control system and associated field equipment will be complete.

• The deployment of flat panel displays to provide new advertising opportunities and support public access to timely flight information will be complete.


46

• An automated vehicle identification system will be implemented to modernize the tracking, billing and access control for the commercial roadway and employee lot.

• IT will provide support to major Aviation-sponsored capital projects, including the new access control system and terminal efficiency improvement program.

Operating Projects

• The Information Security program will be assessed to influence future direction and priorities.

• Preparation and planning will be completed for projects involving disaster recovery, electronic re-cords management, customer contact management and migration of internally hosted services to the cloud.

• A new IT Master Plan will be developed to inform the direction of technology strategy at PDX for the next five years.

• Building Information Modeling (BIM) technologies will be introduced to the Engineering department to assist in the planning, design, construction, and management of Port facilities.

Development Services AdministrationDevelopment Services is responsible for the Project Portfolio Initiative that when completed will result in a Project Portfolio Office that will be responsible for the centralized management and reporting of all capital projects from initiation through project completion.


The Project Portfolio Office (PPO) will continue its commitments to improve the Port’s project portfolio management and project management methodologies and systems. Fine tuning of existing processes as well as development of further aspects of portfolio management (e.g. resource management) will enhance the existing foundation by which the Port now manages its portfolios of projects.

Specific enhancements include the following:

• Review project governance for opportunities and challenges related to the capital planning cycle and recommend improvements for the following year’s capital planning cycle.

• Secure a Project and Portfolio Management tool that will support grant and funding management, portfolio management, project management and construction management. The software will meet already developed business requirements, with implementation to be assisted by a consultant team. This will be a multi-year project, with this first year focused on planning, phasing and early work modules for implementation.

• Continue business process improvement work related to project definition, master scheduling, proj-ect change management, resource management, project estimating and project gate reviews. Stan-dardized processes will be put into place, and workflows will be developed to capture specific meth-odologies and roles and responsibilities for portfolio, project and fund management.

• PPO will continue to analyze project contingency to better understand the amount of contingency Port projects maintain and explore potential alternative uses for excess contingency.

• PPO will also partner with Engineering to make improvements in the project close-out phase.


47

Development Services & Information Technology - Requirements SummaryAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15





Interfund Reimbursements $- $- $- $- $- $-



Contract & Consulting Services $947,996 $909,128 $1,429,366 $1,490,125 $1,490,125 $1,490,125


Utilities 199,351 193,535 206,320 201,520 201,520 201,520


Insurance (35,653) 35,954 - - - -


Miscellaneous Expenses* 978,790 1,105,705 1,313,459 1,303,664 1,303,664 1,303,664



Airport Revenue Fund $- $- $- $- $- $-

Total Interfund Reimbursements $- $- $- $- $- $-



48

Engineering - Requirements SummaryAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15





Interfund Reimbursements $- $- $- $- $- $-



Contract & Consulting Services $280,856 $80,943 $348,104 $278,104 $278,104 $278,104


Utilities 689 727 996 996 996 996


Insurance 8,870 4,454 - - - -


Miscellaneous Expenses* 1,045,876 864,397 905,218 922,408 922,408 922,408



Airport Revenue Fund $- $- $- $- $- $-

Total Interfund Reimbursements $- $- $- $- $- $-



49

Development Services & Information Technology - Personnel ServicesFull Time Full Time



Grade Title 2011-12 2012-13 2013-14 2013-14 2014-15 2014-15

Development Services Admin

80-82 Administration $375,287 $390,795 3.0 $400,287 3.0 $397,807


71-74 Admin Support Staff - - - - - -

-- Interns - - - - - -

Subtotal DSA Admin $511,527 $548,267 5.0 $561,751 5.0 $565,296

Information Technology*

80-82 Administration $938,910 $1,309,420 12.0 $1,346,272 12.0 $1,404,377

75-79 Admin Professional/Tech 2,670,329 2,665,673 37.2 3,011,887 38.5 3,273,085


-- Interns - - - 40,000 - -

Subtotal Information Technology $3,741,690 $4,110,975 52.2 $4,537,173 53.5 $4,821,089

Total Overtime $7,303 $15,469 - $8,001 - $8,001

Accrued Labor 26,045 (2,448) - 17,142 - 71,292

Fringe Benefits 2,047,488 1,704,158 - 2,060,373 - 2,184,569

Total DS Admin and IFT $6,334,053 $6,376,421 57.2 $7,184,440 58.5 $7,650,247

7,650,247

Engineering

80-82 Administration $1,449,972 $2,153,153 20.0 $2,275,962 14.0 $1,581,491



-- Interns 47,330 74,015 2.5 93,001 3.5 93,000

Subtotal Engineering $6,112,949 $6,199,759 76.0 $6,508,165 82.5 $6,987,211

Total Overtime $27,647 $34,015 - $35,000 - $35,000

Accrued Labor 34,579 293 - 25,989 - 92,975

Fringe Benefits 2,992,488 2,612,879 - 2,909,139 - 3,004,090

Total Engineering $9,167,664 $8,846,946 76.0 $9,478,293 82.5 $10,119,276


50


51

Navigation

Operation of the Dredge Oregon

The Navigation division provides management, equipment, and technical expertise to support the Port’s sponsorship obligations to assist in the maintenance of the Columbia and Willamette River navigation channels. The Navigation division also assists as needed with Port berth dredging projects. Operations and maintenance of the Dredge Oregon – along with the attendant plant and equipment – are governed by a cost-reimbursment agreement with the U. S. Army Corps of Engineers (USACE). The current five-year contract will last through September 2016.

Key Assumptions

The need for dredging will continue in order to maintain the channel’s authorized width and depth at 600 feet by 43 feet, respectively.

Fiscal Year 2014-15 Objectives

The primary goal is to provide safe, environmentally responsible, cost-effective dredging services to the USACE while maintaining the navigation channel. Navigation also supports the Marine department and other down-river ports by maintaining effective channel depths and supporting related port development. Navigation works with the USACE and regulatory agencies to improve and/or develop dredging methods to enhance water quality protections.

Significant capital projects include the following:

• Reinforce the cracked and fatigued spud carriage on the stern of the Dredge Oregon.

• Rebuild the aging swing gearbox to prevent failure.

• Dry dock and inspect the hull of Sea Mule.

• Reconfigure the Ivanoff and replace scow B-22, pending final approval by the USACE.


52

Navigation - Requirements SummaryAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15





Interfund Reimbursements $- $269 $- $- $- $-



Contract & Consulting Services $1,165,906 $785,340 $517,696 $631,836 $631,836 $853,536

Materials and Supplies 1,271,696 740,177 1,061,492 950,092 950,092 950,092

Utilities 63,349 50,125 63,327 57,447 57,447 57,447

Equipment, Fuel and Lubricants 3,317,347 1,891,687 1,966,446 1,859,946 1,859,946 2,522,946

Insurance 1,296,581 919,852 686,245 687,775 687,775 687,775


Miscellaneous Expenses* 85,272 (57,229) 103,400 13,400 13,400 13,400



Airport Revenue Fund $- $269 $- $- $- $-

Total Interfund Reimbursements $- $269 $- $- $- $-



53

Navigation - Personnel ServicesFull Time Full Time



Grade Title 2011-12 2012-13 2013-14 2013-14 2014-15 2014-15

Navigation

80-82 Administration $399,297 $410,602 4.0 $419,379 4.0 $430,729



-- Dredge/Navigation 2,957,824 2,447,910 34.0 2,583,939 31.5 2,458,640

-- Interns - - - - - -

Subtotal Navigation $3,525,617 $2,990,421 41.0 $3,181,227 38.5 $3,070,743

Total Overtime $1,089,044 $520,513 - $469,794 - $547,000

Accrued Labor 20,836 1,619 - (31,654) - 47,146

Fringe Benefits 1,906,608 1,466,552 - 1,530,567 - 1,491,593

Total Navigation $6,542,104 $4,979,105 41.0 $5,149,933 38.5 $5,156,483


54


55


Functions have been centralized to better manage costs by consolidating certain services to individual op-erating divisions, and to provide needed controls of certain processes. Corporate Administration consists of the office of the Executive Director, Public Affairs, Human Resources, Legal, and Financial & Adminis-trative Services (F&A). Public Affairs includes Media & Government Relations, Corporate Marketing, and Environmental Affairs.

F&A, the largest of the Administrative Divisions, includes the office of the CFO and the functions of Risk Management, Administrative Services, Business & Financial Services, Financial Analysis & Projects, Con-troller & Cash Management, Internal Audit, Research & Market Information.


56

Corporate Administration - Requirements SummaryAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15





Interfund Reimbursements $- $- $4,562 $4,562 $4,562 $4,699



Longshore Labor $- $- $- $- $- $-

Contract & Consulting Services 3,333,356 4,160,034 5,557,376 5,302,309 5,467,309 5,467,309


Utilities 204,802 202,718 222,104 218,078 218,078 218,078


Insurance 132,424 198,439 299,884 397,656 397,656 397,656

Management & Travel Expenses 1,157,064 1,085,926 1,388,618 1,771,529 1,771,529 1,771,529

Miscellaneous Expenses* 4,836,153 4,708,370 5,173,072 5,190,307 5,190,307 5,190,307



Airport Revenue Fund $- $- $4,562 $4,562 $4,562 $4,699

Total Interfund Reimbursements $- $- $4,562 $4,562 $4,562 $4,699



57

Corporate Administration - Personnel ServicesFull Time Full Time



Grade Title 2011-12 2012-13 2013-14 2013-14 2014-15 2014-15


Executive Administration

80-82 Administration $521,020 $537,367 3.0 $531,516 4.0 $841,594

75-79 Admin Professional/Tech - - - - - -


Subtotal Executive Administration $640,366 $660,346 6.0 $657,522 7.0 $971,367

Legal

80-82 Administration $302,577 $389,868 2.0 $310,257 4.0 $634,359


71-74 Admin Support Staff 25,723 - - - - -

-- Interns 12,235 21,539 - 34,320 - 37,440

Subtotal Legal $1,537,184 $1,665,682 14.8 $1,706,960 14.5 $1,765,816

Human Resources

80-82 Administration $541,752 $705,689 5.0 $654,946 6.0 $732,932



-- Interns 11,010 15,224 - 33,281 - 25,200

Subtotal Human Resources $1,258,921 $1,461,774 16.9 $1,474,716 16.9 $1,530,063

Public Affairs (including Environmental)

80-82 Administration $1,077,710 $1,598,909 13.6 $1,693,816 7.0 $968,931



-- Interns 45,766 52,630 - 66,880 - 67,174

Subtotal Public Affairs (including Environmental) $3,024,678 $3,090,196 35.6 $3,260,079 35.6 $3,370,988

Subtotal Executive $6,461,149 $6,877,999 73.3 $7,099,277 74.0 $7,638,233

Subtotal Overtime $3,538 $3,064 - $- - $-

Subtotal Accrued Labor 38,555 4,405 - 27,497 - 99,214

Subtotal Fringe Benefits 2,821,400 2,645,665 - 2,753,277 - 2,850,381

Total Executive $9,324,642 $9,531,133 73.3 $9,880,051 74.0 $10,587,828


58

Corporate Administration - Personnel Services (Cont’d)Full Time Full Time



Grade Title 2011-12 2012-13 2013-14 2013-14 2014-15 2014-15

Corporate Administration (Continued)

Financial & Administrative Services

80-82 Administration $1,819,324 $1,852,988 16.0 $1,868,122 17.0 $2,016,986



-- Interns 4,565 21,917 - 46,001 - 16,641

Subtotal Financial & Admin Services $4,291,651 $4,538,169 60.0 $4,746,013 62.0 $4,967,492

Subtotal Overtime $1,061 $200 - $- - $-



Total Financial & Admin Services $6,270,262 $6,264,333 60.0 $6,728,780 62.0 $7,124,917

5,703,208 9,531,133 9,880,051 10,587,828

Subtotal Corporate Administration $10,752,800 $11,416,168 133.3 $11,845,290 136.0 $12,605,725

Subtotal Overtime $4,976 $3,264 - $- - $-



Total Corporate Administration $14,678,225 $15,795,466 133.3 $16,608,831 136.0 $17,712,746


59

Bond Construction Fund

This fund accounts for the acquisition, construction, expansion, and improvement of new and existing structures and facilities. Its resources are generated from transfers from the General Fund and Airport Revenue Fund and interest on investments. This fund accounts for capital requirements of Marine & In-dustrial Development, Navigation, Engineering, General Aviation and Corporate Administration.

General Aviation capital requirements are funded through a combination of earnings from General Avia-tion operations, FAA grants and a transfer of resources from the Airport Revenue Fund.


60

Bond Construction Fund - Resources & RequirementsAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Resources


Interest Income 67,084 40,685 94,725 103,140 103,140 103,140

Federal/State Grants/Other 11,403,555 $8,349,757 16,191,866 1,776,366 19,990,846 19,990,846

Taxes

Property Taxes $- $9,658,014 $9,744,994 $9,890,076 $9,890,076 $9,890,076

Interest on Taxes - 45,169 - - - -


General Fund $34,000,000 $5,000,000 $20,822,989 $40,021,307 $23,203,630 $23,203,630

Airport Revenue Fund 2,950,036 $1,891,619 5,768,184 5,272,899 7,038,501 7,038,501

Total Cash Transfers from Other Funds $36,950,036 $6,891,619 $26,591,173 $45,294,206 $30,242,131 $30,242,131

Total Resources $62,374,020 $37,090,700 $62,622,758 $67,063,788 $70,226,193 $70,226,193

Requirements

Capital Outlay $46,012,555 $15,177,382 $49,858,683 $53,989,237 $57,151,642 $57,151,642


General Fund $4,229,986 $4,981,885 $2,731,763 $3,044,775 $3,044,775 $3,044,775

Airport Revenue Fund 26,023 48,182 22,312 19,776 19,776 19,776


General Fund $- $- $- $- $- $-

Airport Revenue Fund - 871,134 10,000 10,000 10,000 10,000


Contingency $- $- $10,000,000 $10,000,000 $10,000,000 $10,000,000

Ending Balance $12,105,456 $16,012,117 $- $- $- $-



61

Bond Construction Fund - Capital Project Outlay Summary by Project

DIV-LOB Summary Project Number Summary Project Name Summary

Parent Project Number

Status Summary

FY11-12 Actual

FY12-13 Actual

FY13-14 Budget

FY 14-15 Budget

HIO - Hillsboro Airport 100232 HIO Center Tie-Down Reseal - Open $- $- $190,800 $-

100548 HIO Construct RW 12L30R 700073 Open 4,203,965 250,799 6,433,000 7,050,405

100649 HIO OPS Vehicle - Closed 46,085 - - -

100657 HIO TW to NW Corp Center - Candidate - - - -

101025 HIO RW 2-20 Reloc & Ext TW B - Open 1,313,818 2,789,099 7,500,000 -

101035 HIO RW 12-30 Threshold Rehab - Closed 555,907 - - -

101235 HIO Construct East Access Road - Candidate - - - 1,886,000

101554 HIO RW 13R/31L Rehab - Candidate - - - 250,000

101559 HIO Jackson Bottom Mitigation - Open 63,913 115,353 55,000 40,000

101732 GA Replace Mower HIO - Open - 20,716 - -

101961 HIO Terminal Building - Open - - 167,400 -

101962 HIO Terminal Ramp - Closed - 22,500 195,500 -

101963 HIO West Tie-Down Rehab - Open - - 293,250 -

102133 Gen Aviation Vehicles 14/15 - Candidate - - - 80,000

101874 HIO MX Bldg HVAC Upgrades - Open - - - 6,400

102166 HIO Perimeter Road Rehab - Candidate - - - 770,000

102204 HIOStormwater Zinc Mitigation - Candidate - - - 200,000

101073 AM HIO Terminal Bldg - Candidate - - - 105,980

HIO - Hillsboro Airport Total $6,183,688 $3,198,467 $14,834,950 $10,388,785

TTD - Troutdale Airport 100282 TT Relocate TW B Ph 1 & Demo 700063 Closed $3,536 $- $- $-

101038 TTD Rehab TW A - Candidate - - - 2,000,000

101039 TTD Reconstruct RW 7-25 - Open - 252,693 2,653,000 1,500,000

101733 GA Replace Mower TTD - Open - 20,716 - -

101782 HIO-TTD Energy Consev 700149 Open - - 60,000 70,000

101814 TTD Taxiway B Slurry Seal - Open - 56,232 - -

102024 TTD Bld 1123 Renovation/Energy - Candidate - - - 151,450

102025 TTD Bldg 920 FBO Renov Ph 1 - Open - - 97,650 -

102030 TTD Hangar 520 Renov Ph 1 - Open - - 156,865 -

101133 AM Bldg 920 (1977) - Candidate - - - 1,435

TTD - Troutdale Airport Total $3,536 $329,641 $2,967,515 $3,722,885

MAR - Marine 100219 T6-Remote PGE Power Monitoring - Closed $11,619 $- $- $-

100352 SRG - Rail Expansion-Phase 1 - Open 4,967,432 253,262 - -

100606 Ramsey Rail Improvements 700107 Closed 40,238 825 - -

100830 T4-Berth 410/411 Steel Pile - Closed 119,710 - - -

100861 T5-Berth 503 Deepening - Closed (45,571) - - -

101249 Columbia Grain Bonds - Open 31,584 27,788 - -

101353 T6-B604-605 Wharf Modernizat’n - Closed 4,956,057 114,960 - -

101356 T6 Crane 6378 Elec Drive Rehab 700104 Closed 111,032 - - -

101360 Ramsey Rail Lead Construction 700107 Closed 580,645 - - -

101361 Ramsey Rail Yard Construction 700107 Closed (482) - - -

101363 MAR-Term Equip Replace Prgm - Candidate - - 133,500 151,000

101366 T6-Reroof CDC 700130 Open 26,141 350,488 435,000 -

101426 T6- Crane 6378 Purch Headblock - Closed 9,565 - - -

101497 T6Cranes73&74FeedEquipUpgrades 700111 Closed 632,213 8,850 - -

101498 T6 Crane 6379 Headblock 700111 Open 1,717 1,006 - -

101499 T6 Load Cells 6373,6374,6375 700111 Open 37,729 67,531 - -


62




Status Summary

FY11-12 Actual

FY12-13 Actual

FY13-14 Budget

FY 14-15 Budget

101500 T6 Twin Twenty SpreaderBeam 700111 Open 15,270 7,759 - -

101501 T6 Cranes 73&75 CabReplacement 700111 Open 10,820 14,910 - -

101502 T6 Crane 6379 PLC&IO Replace 700111 Open 776,114 341,169 - -

101635 T6 IT Network Upgrades 700112 Closed 72,055 - - -

101636 T4 Rail Upgrades - Closed 1,278,302 3,761 - -

101651 T6 Feeder 413P Replacement - Open 119,252 2,010 - -

101654 MAR Gearlocker Vehicle - Closed 5,084 - - -

101655 MAR Operations Vehicle - Closed 24,015 - - -

101667 T2 Stormwater Improvements - Candidate - - - -

101674 T6 Radio Narrowbanding - Closed 54,865 - - -

101675 Marine Sec Utility Vehicle - Closed 34,831 - - -

101676 Marine Sec Manager Vehicle - Closed 28,946 - - -

101682 T6 ITCSI Lease Deficiencies - Open 245,257 25,139 - -

101690 T4 Phone Line Replacement - Closed 276,404 34,684 - -

101706 MAR Fender Sys Rehab FY12 700124 Closed 201,860 166,127 - -

101709 MAR Fender Sys Rehab 14-15 700124 Candidate - - - 250,000

101715 T2 B203 & 204 Yard Pave Rehab - Open 105 139,414 - -

101729 MAR VehicleReplacement M06296 - Closed 31,058 33 - -

101730 MAR VehicleReplacement E196465 - Closed 32,045 - - -

101731 MAR VehicleReplacement M06292 - Closed 30,554 33 - -

101739 T4 Pier 1 Site Improvements - Closed 21,368 197,169 - -

101740 Cranes 3,4,5 CMS Upgrades 700154 Open - 5,145 1,200,000 -

101756 MAR Roof Rehab FY14/15 700130 Candidate - - - 150,000

101758 MAR Pavement Rehab FY11/12 700132 Open - 68,794 - -

101759 MAR Pavement Rehab FY12/13 700132 Open - 265,334 965,000 -

101761 MAR Pavement Rehab FY14/15 700132 Candidate - - - 800,000

101763 PBT T5 Expansion 2011 - Closed 201 32,858 1,400,000 -

101783 Marine Energy Consev 700149 Open - - 150,000 125,000

101786 MAR Term Security Vehicle Van - Closed - 27,987 - -

101787 MAR VehicleReplace MFM - Closed 43,126 5,483 - -

101788 MFM Asphalt Hot Box - Closed - 33,311 - -

101789 MAR Term Security SUV - Closed - 26,492 - -

101821 T6FuelIsland&CDCAccessControl - Open - 103,503 269,750 -

101834 T2 SPCC Upgrades - Open - 14,846 - -

101842 Landscape Shop Wash Pad - Open - 30,286 - -

101851 MAR Brush Chipper - Closed - 3,276 - -

101852 MAR Asphalt Crack Sealer - Closed - 97 - -

101853 MAR UTV Mule - Closed - 7,477 - -

102052 T4 DD B410 411 RailYard Improv 700151 Closed - - 500,000 -

102080 Gen Fund Marine Vehicles 13/14 - Open - - 335,000 -

102085 Gen Fund Marine Vehicles 14/15 2 Candidate - - - 700,000

102103 T4 DD B410 411 RailYard Scale 700151 Closed - 8,969 661,000 -

700000 CD-Improve River Miles 3-106.5 700000 Open (2,690,045) 3,382 - -

810056 T4 Dravo Removal - Open 3,702 427,865 125,000 -

810057 T6 Crane 76 & 77 Removal - Open - 59,917 598,000 -

102141 T2 Rail Scale - Candidate - - - 2,000,000


63




Status Summary

FY11-12 Actual

FY12-13 Actual

FY13-14 Budget

FY 14-15 Budget

101858 T6 Crane Travel Improvements 700154 Open - 34,782 - -

101891 T6Crane6373/6374DrvElectronics - Candidate - - - 340,000

101708 MAR Fender Sys Rehab 13-14 - Candidate - - 500,000 -

101755 MAR Roof Rehab FY13/14 - Candidate - - 220,000 -

101760 MAR Pavement Rehab FY13/14 - Candidate - - 632,074 -

MAR - Marine Total $12,094,818 $2,916,722 $8,124,324 $4,516,000

NAV - Navigation 100467 Heavy Duty Equip Ramp Barge - Closed $11,252 $- $- $-

100569 NAV-Misc Capital Needs - Candidate - - 250,000 250,000

101063 1000ft Steel Pipe Replacement - Open - 89,860 - -

101324 Suction Pipe Mouth Casting - Open 1,220 - - -

101325 30InchDischarge Elbow w-Flange - Open 915 1,107 - -

101327 Rebuild Engine - Williams - Closed 101,517 - - -

101328 Rebuild Engine - Clackamas - Closed 42,315 - - -

101329 Reskin Clackamas Hull - Closed 51,444 - - -

101330 Dyno-Matic Control - Closed 105,000 - - -

101335 Dredge Oregon Dry-Dock 2013 700157 Open - 22,099 1,500,000 -

101338 D8T - Engine Rebuild - Candidate - - - 55,000

101339 D8R-Transmission Final Rebuild - Candidate - - - 80,000

101344 Pontoons - 1st Set - Open - 146,910 - 229,778

101345 Pontoons - 3rd Set - Candidate - - - -

101346 Replace Line Scow 13A - Candidate - - - 185,000

101455 Ivanoff Rudder Modification - Open 16,981 34,997 - -

101457 Dredge Oregon Repowering - SY1 700157 Open 1,974,779 8,423,761 4,033,764 -

101508 Clackamas Genset Replace-40KW - Closed 5,952 - - -

101510 Satellite Broadband CommSystem - Candidate - - 75,000 75,000

101511 30 Ton Hydraulic Crane - Closed - 67,032 - -

101569 Electronic Comm Stations - Closed 20,224 - - -

101604 Portable Welder for NAV-2010 - Closed 10,105 - - -

101606 Dredge Oil Water Separator - Closed 25,300 1,286 - -

101607 Sounding Depth Equip Upgrade - Closed 11,331 - - -

101640 NAV Flat Bed Trailer - Closed - - 25,000 -

101642 Lever House Egress Upgrade - Open 34,951 - - -

101643 Overhead Crane for WeldingShop - Candidate - - - 100,000

101673 NAV Personal Locating Beacons - Closed 90,994 - - -

101779 Navigation Office Renovation - Open - 189,600 - -

101790 Replace Scow B-22 - Open - - 740,000 760,000

101792 Dredge Spud Keeper Rehab - Candidate - - 150,000 150,000

101795 Replace Dredge Bull Rail - Candidate - - 100,000 -

101798 Dredge Velocity Gauge - Candidate - - - 50,000

101799 966G - Engine Rebuild (Loader) - Candidate - - - 35,000

101803 Replace Dredge Genset 350kw - Closed - 205,592 - -

101804 Portable Welder for NAV-2012 - Open - - 20,000 -

101805 Rebuild Waterfall Winch - Candidate - - - 250,000

101807 Bow Rubber Williams - Candidate - - 25,000 -

101808 Replace Dredge Deck Crane - Candidate - - 125,000 -

101811 Clackamas-Fire suppression sys - Open - 30,907 - -


64




Status Summary

FY11-12 Actual

FY12-13 Actual

FY13-14 Budget

FY 14-15 Budget

101832 WilliamsRudder&WheelReplcment - Closed - 112,331 - -

101840 Navigation Energy Conservation 700149 Open - - 5,000 8,400

102070 Pipe Barge Drydock (B34.500) - Candidate - - 200,000 200,000

102071 Work Barge Drydock (B-38.500) - Candidate - - - 400,000

102072 Navigation Yard Ramp - Open - - - -

102075 Booster Pump Repower - Candidate - - - 1,000,000

102076 SeaMule Drydock - Candidate - - 250,000 250,000

102078 Spud Carriage Reinforcement - Candidate - - - 2,000,000

102118 Anchors (10) - Candidate - - - 150,000

102137 Cutter Shaft Bearings - Candidate - - - 800,000

101337 D8R Engine Rebuild - Candidate - - - 50,000

102114 DeliveranceRebuildEngine/Trans - Candidate - - - 150,000

102110 DredgeEngineRoomNoiseMitigatn Study 700167 Candidate - - - 200,000

101885 DredgeEngineRoomNoiseMitigatn 700167 Candidate - - - 800,000

102145 DredgeSoftware&EquipUpgrades - Candidate - - - 75,000

102113 Rebuild Swing Gear Box - Candidate - - - 300,000

102112 Replace Dredge Spud - Candidate - - - 300,000

101509 Replace Shop Welders&Feeders - Candidate - - 25,000 -

101644 Portable Welders (two) for NAV - Candidate - - 25,000 -

101646 Replace Dredge Weld Machines - Candidate - - 20,000 -

101796 Dredge Spud Evaluation - Candidate - - 100,000 -

NAV - Navigation Total $2,504,280 $9,325,482 $7,668,764 $8,903,178

PND - Industrial 100370 WHI Land Acquisition - Open $- $5,458 $- $-

Development 100482 Reynolds-Phase 1 Improvements 700018 Closed (99,095) - - -

100544 Reynolds-Development Planning 700018 Closed 272 - - -

101047 TRIP-Contamination Clean Up 700018 Open 156,609 250,503 204,857 249,589

101657 WHI Public Access - Open - - 25,000 -

101659 TRIP II Lots 6-11, OS, Sundial 700018 Open 722,553 535,245 457,000 9,300,000

101660 TRIP II Lots 4, 5 700018 Open 32,773 23,298 119,000 10,000

101661 TRIP II JPA 700018 Open 145,406 177,195 24,300 10,000

101662 TRIP II Subdivision 700018 Open 30,311 39,988 - 18,016

101663 TRIP 2 Graham Swigert Reimburs 700018 Open - 65,453 1,370,520 7,353,990

101664 TRIP II Mitigation Planting 700018 Candidate - - - 1,788,000

101713 GIP Land Acquisition 700125 Closed 26,532,779 - - -

101743 GVBP Land Division 700125 Open 34,966 40,142 - -

101744 GVBP Mitigation 700125 Open - - 25,000 -

101745 GVBP Onsite Infrast - East 700125 Open 20,804 25,596 400,000 -

101746 GVBP Onsite Infrast - West 700125 Open - 12,684 760,000 -

101747 GVBP Half St Improve 223rd 700125 Candidate - - 100,000 670,000

101748 GVBP Half St Improve Glisan 700125 Open - - 800,000 -

101818 GP RailCrossingDriveway Rehab - Open - 70,862 - -

101844 TRIP 2 Graham Swigert Port 700018 Open - 8,805 321,480 2,422,500

102062 Business Park Monuments - Candidate - - 165,600 -

102064 General Fund Land Acquisition - Candidate - - 10,000,000 -

102066 Fairview Creek Mitigation Bank - Candidate - - 200,000 682,500

102068 SW Sidewalk Replacement - Open - 301 230,000 -


65




Status Summary

FY11-12 Actual

FY12-13 Actual

FY13-14 Budget

FY 14-15 Budget

102069 TRIP 40 Mile Loop 700018 Open - - 579,948 580,000

810027 North Lombard Widening - Closed 7,576 - - -

810030 Columbia/Lombard Frght Imprvmt - Candidate - - - 115,000

101868 FAA Wildlife Safety Work - Candidate - - - 155,250

102150 Rivergate Overcrossing - Candidate - - - 4,009,000

102063 Swan Island Redevelopment - Candidate - - 200,000 -

PND - Industrial Development Total $27,584,954 $1,255,530 $15,982,705 $27,363,845

FNA - Finance & Admin 100292 IT Help Desk Track&Asset Mgmt 700143 Open $1,709 $389,947 $- $-

100797 Fileserver Replacement 14/15 700119 Candidate - - 125,000 125,000

100798 Workstation Replacements 14/15 700119 Candidate - - 200,000 650,000

100799 Printer/PeripheralReplace14/15 700119 Candidate - - 25,000 100,000

100846 Network Equipment FY 10-11 - Open 206,246 71,370 - -

100847 Network Equipment FY 14-15 700119 Candidate - - - 350,000

100892 IT Storage Network Solution - Closed 131,565 - - -

100901 Avantis Upgrade 700118 Open - - 540,000 -

100946 OS-Office Upgrade 700119 Closed - 461,724 - -

100947 JDE Upgrade 700118 Closed - 825,114 - -

100950 GIS Upgrade 700117 Closed 317,776 - - -

101269 Document Management Solution 700116 Closed 218,215 - - -

101273 TRC Replacement/Conversion 700116 Closed 9,991 1,666 - -

101274 Budget Application Replacement 700118 Closed 303,996 667,940 - -

101276 PCI Remediation - Closed 65,250 - - -

101302 Network Management System 700114 Open - 140,752 - -

101312 Voicemail Hdwr-Sfwr Upgrade 700119 Candidate - - - 75,000

101314 VoIP PBX Hdwr-Sfwr Upgrade 700119 Candidate - - - 350,000

101319 Network Applic Recog-Routing 700114 Open - - 400,000 -

101322 Network Intrusion Detection 700114 Closed 63,524 31,367 - -

101565 Fileserver Replacement 10-11 - Closed 17,642 - - -

101566 Workstation Replacement 10-11 - Closed 6,148 - - -

101681 SW License Management System 700143 Closed 150 (150) - -

101684 JDE-AP Migration 700118 Closed 319,360 66,808 - -

101703 PrinterPeripheralReplace 11-12 700119 Closed 10,876 - - -

101704 Workstation Replacement 11-12 700119 Closed 9,124 4,448 - -

101705 Fileserver Replacement 11-12 700119 Closed 136,144 29,227 - -

101714 Admin FleetVehicle-Nissan Leaf - Closed 35,934 - - -

101736 Survey Vehicle Replacement - Closed 43,638 865 - -

101741 Replace Analog Radios-gen fund 700133 Closed - 69,933 - -

101766 Cable Management System - Candidate - - 150,000 150,000

101780 Mobile Device Exchange Servers - Open - - 75,000 -

101785 Project Portfolio Mgmt Tool - Open - - - 1,000,000

101829 Fileserver Replacement 12-13 700119 Closed - 113,975 - -

101830 Workstation Replacement 12-13 700119 Closed - 198,097 - -

101831 PrinterPeripheralReplace 12-13 700119 Closed - 477 - -

101835 Replacement Van Pool Fleet - Closed - 20,926 - -

101841 Call Management System Upgrade - Closed - 25,587 - -

101848 Admin Vehicles 2012-13 - Open - 58,587 - -


66




Status Summary

FY11-12 Actual

FY12-13 Actual

FY13-14 Budget

FY 14-15 Budget

101855 Network Equipment 12/13 - Open - 2,947 200,000 -

102038 Electronic Records Mgt Sys JC 700169 Candidate - - - -

102039 GIS Upgrade to 10.1 - Open - - 516,000 -

102043 Mobility Solutions - Open - - 150,000 -

102045 Port Asset Management System - Candidate - - - -

102047 Tape / Backup System - Candidate - - 310,500 350,000

102048 Windows OS Upgrade - Candidate - - - -

102079 Gen Fund Admin Vehicles 13/14 - Open - - 233,000 -

102084 Gen Fund Admin Vehicles 14/15 - Candidate - - - 140,000

102148 Tablet Computing Initiative - Candidate - - - 125,000

100505 Communications Test Equipment - Candidate - - 50,000 -

100848 PBX Software/Hardware - Candidate - - 60,000 -

FNA - Finance & Admin Total $1,897,288 $3,181,607 $3,034,500 $3,415,000

LUP - Land Use Planning 102151 DD-Drive Rebuild - Candidate $- $- $- $1,300,000

102152 DD-Tree Mitigation-Phase 1 - Candidate - - - 100,500

LUP - Land Use Planning Total $- $- $- $1,400,500

PUB - Public Affairs 101876 Public Website Replacement - Open $- $- $- $406,000

ENR - Environmental 102142 Summation Upgrade - Candidate - - - 100,000

Other Total $- $- $- $506,000

Grand Total $50,268,564 $20,207,449 $52,612,758 $60,216,193

Total Bond Contruction Fund $50,268,564 $20,207,449 $52,612,758 $60,216,193

Capitalized Labor (4,256,009) (5,030,067) (2,754,075) (3,064,551)

Capital Outlay $46,012,555 $15,177,382 $49,858,683 $57,151,642


67

Aviation

The Aviation Division is responsible for the ownership and operation of a system of airports to meet the air transportation needs of the community. The airports are Portland International Airport (PDX), and two General Aviation reliever airports located at Hillsboro (HIO) and Troutdale (TTD). Budgetary information for the General Aviation airports is included in the General Aviation section of the General Fund.

The Aviation Division manages and provides facilities for the airlines and other airport tenants. Planning and budgeting is done by business line. The business lines are key areas of commercial operations where significant revenues, expenses, capital expenditures and customer service elements merge. There are five primary business lines: Terminal, Airfield, Landside Operations, Airside–Landside Properties, and General Aviation. Aviation primarily generates revenues from automobile parking fees, facility rentals, aircraft landing fees, and concession agreements.

Under the terms of the Airline and Cargo operating agreements at PDX, the signatory airlines serving PDX guarantee that revenues are equal to the cost of operations and maintenance and 130 percent of debt service costs for the Airfield and Terminal cost centers at PDX. The Port has the financial responsibility for all other airport facilities.

Airport capital improvements are funded by income from Airport operations, Revenue Bonds, Federal and State Grants, Passenger Facility Charges, and Customer Facility Charges (CFC).

The mission of the Aviation Division is to operate, maintain and promote an airport system that satisfies the air transportation needs of our customers by providing competitive cargo and passenger access to regional, national and international markets.

In support of this mission, the following five year business line goals and metrics have been established reflecting the Port’s strategic plan and Aviation key areas of focus:

• Meet or exceed safety, security and operational requirements (FAA and TSA inspections)

• Meet or exceed customer service goals (survey)

• Meet or exceed environmental goals and metrics (reduce waste, emissions and energy use)

• Cost-effectively maintain assets

• Focus on maintaining and increasing non-airline revenues

• Aggressively manage operating costs

• Maintain competitive airline rates (landing fee, terminal net requirement)


68


PDX


Total Passengers(in millions)

Landed Weight(lbs in millions)

9.3 9.6 9.9 3.1%

Description Change

14.7 15.5 15.9 2.6%


69

Airport Revenue Fund

This Fund is required to be administered by the Port as long as any PDX Revenue Bonds are outstanding. The money deposited in this Fund is not commingled with any other money of the Port, and is used and applied only in the manner specified in Section 13, Ordinance No. 155 and Section 6, Ordinance No. 323. PDX operations are accounted for in this Fund. Principal revenue sources include facility rentals, aircraft landing fees, automobile parking fees and concession agreements.

(Information on revenue or expenditures attributable to General Aviation may be found in the General Fund, and is not included in the Airport Revenue Fund. However, a transfer of resources is made from the Airport Revenue Fund to the Bond Construction Fund to pay for General Aviation capital requirements not funded by earnings from General Aviation operations or by FAA grants.)


70

Airport Revenue Fund - ResourcesAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Resources


Operating Revenue


Service Revenue 665,964 540,505 509,067 530,979 530,979 530,979


Other Revenue 353,543 697,910 635,078 640,133 640,133 640,133

Total Operating Revenue $180,925,316 $186,675,408 $190,042,732 $201,890,690 $201,804,718 $201,857,139

Interest On Investments $551,751 $364,819 $474,175 $512,236 $512,236 $512,236

Other 1,647,822 125,322 - - - -

Interfund Reimbursements-from

General Fund $93,023 $433,016 $312,718 $484,087 $484,087 $484,713

Airport Construction Fund 908,290 1,113,278 1,124,030 1,258,503 1,258,503 1,258,503

Bond Construction Fund 26,023 48,182 22,312 19,776 19,776 19,776


Cash Transfers from Other Funds

General Fund $151,089 $369,106 $322,687 $13,534 $345 $-

Bond Construction Fund - 871,134 10,000 10,000 10,000 10,000

CFC Fund - - - 150,000 150,000 150,000

PFC Fund 51,228,035 - - - - -

Airport Construction Fund 2,301 - - - - -

Total Cash Transfers from Other Funds $51,381,425 $1,240,240 $332,687 $173,534 $160,345 $160,000

Total Resources $277,826,563 $243,452,091 $227,308,654 $282,139,269 $282,040,108 $282,092,811


71

Airport Revenue Fund - RequirementsAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Requirements


Other Requirements

Sys Dev Chgs/Line Of Credit/Other $52,660,669 $90 $5,000 $5,000 $5,000 $5,000


General Fund $20,623,392 $24,707,921 $22,545,025 $25,167,448 $25,020,465 $25,095,801




Airport Revenue Bond Fund $48,433,705 $48,377,256 $47,410,637 $45,917,505 $45,917,505 $45,917,505


General Fund 3,405,612 134,615 3,108,708 3,244,267 3,244,267 3,244,267

Bond Construction 2,950,036 1,891,619 5,768,184 5,272,899 7,038,501 7,038,501

CFC Fund - - - 6,218,448 6,218,448 6,218,448


Contingencies $- $- $36,500,000 $79,200,000 $79,200,000 $79,200,000

Ending Balance $53,451,828 $76,048,948 $- $- $- $-



72

Commercial Aviation - Requirements SummaryAdopted Proposed Approved Adopted

Fund: Airport Revenue Actual Actual Budget Budget Budget Budget

2011-12 2012-13 2013-14 2014-15 2014-15 2014-15





Interfund Reimbursements $20,623,392 $21,112,835 $22,545,025 $25,167,448 $25,020,465 $25,095,801



Contract & Consulting Services $25,908,653 $28,401,047 $27,547,264 $27,895,679 $27,948,011 $27,948,011

Materials and Supplies 3,727,192 3,592,537 4,055,366 4,341,070 4,341,070 4,341,070

Utilities 7,103,814 6,949,285 8,362,669 9,229,864 9,229,864 9,229,864

Equipment, Fuel and Lubricants 1,457,790 1,324,840 1,624,739 1,543,315 1,543,315 1,543,315

Insurance 1,758,799 1,597,114 1,979,331 1,827,039 1,827,039 1,827,039

Management & Travel Expenses 986,171 1,034,293 1,149,463 1,300,183 1,300,183 1,300,183

Miscellaneous Expenses* (3,702,815) (4,170,062) (2,538,102) (1,936,370) (1,936,370) (1,901,370)



General Fund $20,623,392 $21,112,835 $22,545,025 $25,167,448 $25,020,465 $25,095,801




73

Commercial Aviation - Personnel ServicesFull Time Full Time



Grade Title 2011-12 2012-13 2013-14 2013-14 2014-15 2014-15

Commercial Aviation

80-82 Administration $4,388,694 $4,572,043 43.0 $4,686,242 47.0 $5,218,200


71-74 Admin Support Staff 897,321 966,615 24.0 1,057,846 24.0 1,091,253

-- Interns - 18,523 - 28,600 - 72,360

-- PDX Fire 2,860,946 3,034,290 47.7 3,058,686 47.3 3,220,819

-- PDX Maintenance 5,927,996 6,085,735 91.0 6,227,026 91.0 6,376,070

-- PDX Police/Security 4,260,053 4,463,592 65.5 4,761,617 67.0 4,911,593

Subtotal Commercial Aviation $24,685,896 $25,311,740 362.2 $26,561,451 362.3 $27,386,431

Total Overtime $1,781,248 $1,836,957 - $1,895,092 - $2,236,554

Accrued Labor 137,877 13,626 - 123,756 - 405,892

Fringe Benefits 12,131,428 12,597,488 - 13,553,257 - 14,198,298

Total Commercial Aviation $38,736,449 $39,759,811 362.2 $42,133,556 362.3 $44,227,174


74


75

Airport Construction Fund

The money credited to this Fund is used and applied solely to pay for additions, expansions, and improve-ments to the Airport in accordance with Section 12, Ordinance No. 155 and Section 8, Ordinance No. 323. Its principal resources are interest earned on investments, capital grants, Airport Revenue Bond proceeds and transfers from the Airport Revenue Fund, the Passenger Facility Charge Fund and the Customer Facility Charge Fund.


76

Airport Construction Fund - Resources & RequirementsAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Resources


Interest On Investments 504,212 135,477 337,725 367,740 367,740 367,740

Federal/State Grants/Other 32,447,699 23,790,056 6,153,671 9,338,657 11,219,057 11,219,057

Bond and Other Debt Proceeds 9,507,421 - 46,200,000 100,000,000 100,000,000 100,000,000



CFC Fund - - - 12,500,000 12,500,000 12,500,000

PFC Fund 18,554,925 23,366,314 21,089,250 458,000 458,000 458,000

Total Cash Transfers from Other Funds $38,880,194 $37,390,307 $48,746,064 $41,659,493 $39,873,636 $39,816,003

Total Resources $128,429,697 $129,014,880 $135,403,887 $202,474,349 $202,568,892 $202,511,260

Requirements

Capital Outlay $51,409,330 $60,162,268 $73,710,798 $138,376,799 $139,226,799 $139,226,799

Bond Issue Costs/Other $- $- $- $- $1,500,000 $1,500,000


General Fund $8,410,736 $8,443,383 $7,344,058 $7,361,995 $7,361,995 $7,361,995

Airport Revenue Fund 910,591 1,113,278 1,124,030 1,258,503 1,258,503 1,258,503


Airport Revenue Bond Fund $- $- $2,200,000 $5,500,000 $5,500,000 $5,500,000

PFC Fund - - - - - -


Contingencies $- $- $51,025,000 $49,977,052 $47,721,595 $47,663,963

Ending Balance $67,699,040 $59,295,951 $- $- $- $-



77

Airport Construction Fund - Capital Project Outlay Summary by Project

Project Number Summary Project Name Summary Parent Project

NumberStatus

SummaryFY11-12 Actual

FY12-13 Actual

FY13-14 Budget

FY14-15 Budget

100125 PDX In-Line Bag Screen Improve 700028 Open $7,852,759 $3,031,940 $- $-

100246 PDX Install Solar PV System - Closed 309 (11,876) - -

100271 Deicing System Enhancements 700031 Closed 5,293,431 1,599,148 - -

100334 NREX Final Design & Const 700052 Open (102,386) 33,560 - -

100335 Noise System Upgrade (PDX) 700061 Closed 338 - - -

100455 Purch 2 Glycol Recov. Vehicles - Closed - 853,805 - -

100469 Equip Triage/Trtmt Veh TR-881 - Closed 13,973 - - -

100508 MX 7111/7119 Seismic Upgrade 700166 Candidate - - - 500,000

100536 Slurry Seal ARFF Parking & RDS 700138 Open - - 86,000 -

100538 Safety Equip Upgrades Ph 2 - Candidate - - 20,000 -

100586 PDXMaintVehicleReplace 07-09 - Closed 8 - - -

100594 Replace Structural Truck 890 - Closed 12,973 - - -

100609 Access Control System Upgrade - Closed 19,466 67,566 - -

100675 ATC Pavement Rehab Phase 1 700123 Closed 487,234 1,051 - -

100680 PDX ITS-AVI Technology - Open 54,082 217,801 133,550 -

100689 Replace 6 2004 Shuttle Buses 700141 Open - 28,900 - -

100690 Replace 6 2006 Shuttle Buses 700141 Candidate - - - 3,100,000

100692 Replace Toyota Detective’s Vehicle - Open - 36,282 - -

100694 Replace 6 Patrol Cars #24460 - Closed - 248,562 - -

100698 First Responder Radio Replace 700133 Open 1,490,132 80,401 - -

100706 Replace K9 Vehicles - Closed 29,860 16,650 - -

100736 Replace Confined Space Monitor - Candidate - - 50,000 -

100739 Slurry Seal Economy Blue Lot 700138 Candidate - - 97,300 97,300

100740 Slurry Seal ECO East Parking - Closed 89,895 161,997 - -

100756 Fire Department Entry Rd Rehab 700139 Open - - 200,000 -

100763 Flight Info Paging-Technology 700094 Closed 14,333 346 - -

100778 Replace WildlifeVehicle #16117 - Closed 44,418 1,147 - -

100785 Replace Protective Vests 10-11 - Closed 20,909 250 - -

100815 Maint Compound Rds Slurry Seal 700138 Open - - 80,000 -

100816 GA Apron & Parking West Rehab - Closed 417,133 - - -

100825 ReplaceSecurityBadgePrinters - Closed - 19,257 - -

100827 Realign Inbound Airport Way 700043 Closed 419,235 - - -

100828 HQP2CompleteDesign&Constr 700043 Closed 85,029 - - -

100865 EnplaningRdCurbsideSlurrySeal 700138 Closed - 10,291 - -

100871 NE Cargo Parking & Roads Rehab - Closed 235 - - -

100874 CUP Roads Slurry Seal 700138 Closed 6,824 4,122 - -

100875 Transport Way Rehab 700139 Candidate - - 512,665 103,000

100878 Mt Hood Ave Ramps Rehab 700139 Open - 78,138 - 4,635,000

100884 PDX Irrigation Pump VFD - Candidate - - - 25,000

100886 Slurry Seal Taxi Staging Lot 700138 Closed - 9,296 75,000 -

100888 Slurry Seal Economy Red Lot 700138 Open - - 480,000 -

100898 PDX Parking Lot Landscaping - Closed 12,853 - - -

100922 Taxiway C Rehabilitation East 700127 Open 898,043 10,783,287 21,085,890 -

100923 Rwy 3-21 & Twy M Rehab & RSA - Candidate - - - 1,320,000

100942 Deicing II LT Environmental 700031 Closed 76,416 37,636 - -

100973 DD-GA East Redevelopment - Candidate - - 150,000 -


78



NumberStatus


FY12-13 Actual

FY13-14 Budget

FY14-15 Budget

100977 TEIP-Post-Security Conc Redev - Open - - - 18,500,000

100986 Replace ARFF Vehicle T-86 - Open - 26,249 1,100,000 -

100989 Replace 3VehicleDefibrillators - Closed 20,288 - - -

100990 EQ Replace Term Defibrillators - Candidate - - 100,000 100,000

101000 EQ Replace Upgrade PPE - Candidate - - - 30,000

101001 EQ Repl/Upgr Police Handguns - Candidate - - - 30,000

101004 Replace Access Control System 700158 Open - 627,157 4,530,000 4,951,000

101005 Replace Security OPS Vehicle - Closed 33,722 - - -

101052 TW A East Rehab - Closed 1,958 - - -

101053 TW E North Rehab - Open - - 1,200,000 4,800,000

101161 Common Use Gate Improv 2010 - Closed 579,005 17,597 - -

101176 PDX Wetland Mitigation Develop - Candidate - - 250,000 -

101178 Upgrade CUP 15KV and 5 KV - Open - 226,033 1,875,000 100,000

101181 Term Substation Upgrade - Candidate - - - 800,000

101182 Parallel Existing Em Generatrs - Open - 833 181,450 -

101184 P1 Parking Structure Rehab - Closed 1,368,065 - - -

101185 Revenue Control System Upgrade - Candidate - - - 975,000

101195 Taxiway T-K Centerline Lights - Open - 16,874 516,000 2,980,000

101208 Slurry Seal CCA & CCB Ramp - Closed 81,118 28,334 - -

101211 Twy T Southwest Rehab - Open - 161,699 3,200,000 7,770,000

101220 TW E South &E xits - Open 5,615,089 7,696,362 - -

101225 GA Taxilane Rehab - Candidate - - - 60,000

101241 Twy C1 Rehab 700108 Closed 554,312 - - -

101260 Rental Car Service Cntr Rehab2 - Open 7,625 317,818 - -

101303 IT HQ AV System Replacement - Candidate - - - 300,000

101304 IT HQ AV System Expansion - Candidate - - - 210,000

101332 HQP2 - Phone System 700043 Open 19,088 (6,996) - -

101364 CUP Boiler&Fuel Oil SysUpgrade - Closed 246,525 1,835,934 - -

101400 BHS Maint Support Facility 700028 Closed 33,550 - - -

101404 SRWY Construction 700108 Closed 23,812,071 195,688 - -

101419 P2 Parking Guide System - Open 281,124 2,534,402 865,000 -

101424 Wildlife Hazing Access North - Closed 258,054 - - -

101425 Wildlife Hazing Access South - Closed 219,739 - - -

101431 PDX Water System Upgrades - Open 137,853 513,836 1,320,000 -

101434 N. Term Heating Water Upgrades - Open 1,972 271,447 1,414,544 39,478

101436 MX 7113 Fire System - Closed - 906 - -

101437 Data Phone Lines to RC Shop - Open - 101,609 - -

101439 CNG Backup Pump - Candidate - - 366,000 366,000

101440 CCTV Escalators Bag Clm & Tun - Open - 185,658 25,000 -

101444 Lift Net Monitoring System - Closed - 16,844 - -

101458 North Apron Rehab - Open 543,954 5,901,410 - -

101460 DD-RON North Apron Expansion - Candidate - - - 594,000

101468 RAC QTA Expansion - Open - - - 500,000

101491 Hangar K-Roof Replace - Open 2,290 82,563 - -

101492 North Cargo-Roof Replace - Candidate - - 601,000 138,000

101493 CUP Chillers 3,4,7 Rebuild - Open 183,636 180,947 - -


79



NumberStatus


FY12-13 Actual

FY13-14 Budget

FY14-15 Budget

101516 Common Use Self Service Kiosk 700062 Closed 43,704 - - -

101519 OANG Aircraft Arresting System 700108 Open (1,366,635) (51,051) - -

101524 Long Term Parking Road Rehab 700139 Open - - 35,000 -

101525 Solar PV System/Blue Sky Grant - Closed 309,865 - - -

101526 SW Apron Reconstruction - Open - 163,098 1,250,000 -

101527 7115/7113 Roof & Seismic - Open - 45,552 310,000 -

101528 CCA Replace Lower Rooftop Unit 700140 Closed 294,780 451,768 - -

101535 ARFF Bay Floor Epoxy Install - Candidate - - 148,400 -

101536 MX 7111 HVAC Replacement 700166 Candidate - - 600,000 3,000,000

101537 MX 7111/7119 Roof Replacement 700166 Candidate - - 1,240,000 1,564,000

101541 Police Flooring & Cell Reno - Closed 218,738 25,032 - -

101542 Lighting Control Upgrade - Open - - 435,100 -

101551 CAD-Next Computer Aided Disp - Open 24,799 73,632 - -

101553 TW F South Rehabilitation - Open 4,207,327 2,074,800 - -

101560 Terminal Furniture Acq - Open 37,972 162,319 - -

101562 North Admin Office Remodeling - Closed (88,023) - - -

101563 HQ Fitness Center 700043 Closed 2,463 - - -

101571 Replace Remote Cannon System - Closed 16,954 - - -

101572 Govt Island Grassland Mit-Ph 1 700129 Open - 38,541 41,100 89,600

101574 Replace 16 BOD Meters* - Open - 1,129,314 2,050,000 -

101575 PIC Ditch Benching - Candidate - - 300,000 -

101576 RepairNEElrodRdDitchCrossings* - Candidate - - 150,000 -

101578 MX Covered Waste Mgmt Area - Candidate - - - 173,000

101579 EV Charging Stations* - Closed 47,592 109,369 - -

101586 Pub Safety&Security Garage Exp - Open - 17,532 526,000 2,107,325

101587 ARFF Kitchen & Bath Remodel* - Open 88,972 512,466 - -

101588 Concessions Term Furniture* - Closed - 4,000 - -

101592 CCA HVAC Capacity Upgrade* 700140 Closed 292,699 466,146 - -

101593 Service Corridor Refurb* - Closed 1,707 248,745 30,000 -

101594 Term Carpet Replace Program* 700086 Open 36,642 772,140 1,380,000 10,055,000

101595 IT Wi-Fi Operational Upgrade* - Open - - 375,000 -

101608 WaterLineUpgrade-7640AirportWy - Closed 2,123 - - -

101610 CUPPS Upgrade* - Open - 230 - -

101611 IT EQ Common Use Equip Upgr - Candidate - - 500,000 500,000

101612 Airtrans Waterline Upgrade* - Closed 69,545 - - -

101614 IRNE - Fiber Diversity/Loop* - Open - 8,022 450,000 240,774

101615 P1 Lighting Upgrade* - Open 16,217 215,135 - -

101616 Levee Ditch Drainage* - Closed - - 380,000 -

101617 UpperRdwyExpan Joint Replace* 700139 Closed 12,319 - - -

101620 Concourse Connector Auto Start - Closed 9,821 - - -

101634 CUP Chiller #5 Rehab - Closed 596 - - -

101649 Pavement Temp Sensor System 700134 Closed 176,201 658,306 - -

101650 Airfield Hybrid Vehicles 700108 Closed 11,907 - - -

101656 PDX Series 21 Bond ALCC - Closed 34,768 - - -

101666 Skylights Rehab Program - Open 3,484 93,695 370,000 1,360,000

101671 PDX HVAC Controls Upgrade - Open 49,053 1,660,985 1,091,471 -


80



NumberStatus


FY12-13 Actual

FY13-14 Budget

FY14-15 Budget

101672 HQ Office Furniture - Open 44,267 - - -

101685 MX Vehicle Program FY10/11 700122 Closed 300,069 381,272 - -

101686 MX Vehicle Program FY11/12 700122 Open 253,636 315,201 - -

101687 MX Vehicle Program FY12/13 700122 Open - 233,382 - -

101688 MX EQ Program FY 13/14 700122 Open - - 360,000 -

101689 MX EQ Program FY 14/15 700122 Candidate - - - 810,000

101694 South Apron PCC Joint Rehab 700121 Open 6,795 14,953 211,720 225,000

101695 Terminal Apron PCC Joint Rehab 700121 Open - 254,790 - -

101696 HQP2 Measure & Verification 700043 Closed (55,739) 91,574 - -

101698 ATC Pavement Rehab Phase 2 700123 Open 481,240 7,096,860 - -

101699 ATC Pavement Rehab Phase 3 700123 Open 38,640 3,922,810 11,497,000 -

101700 ATC Pavement Rehab Phase 4 700123 Open - 21,652 710,000 -

101717 CUP Feed Water VFD - Closed 31,182 32,186 - -

101721 NE 33rd Wildlife Fencing - Closed 34,286 - - -

101722 CCA Roof Rehab 700126 Open 2,620 6,019 100,000 1,080,000

101723 CCB Roof Rehab 700126 Open - 43,648 400,000 -

101724 CCD Ext Roof Rehab 700126 Candidate - - - 130,000

101725 Central Term Roof Rehab 700126 Candidate - - - 130,000

101726 CCE Roof Rehab 700126 Candidate - - - 331,875

101727 N Term Excl N Node Roof Rehab 700126 Candidate - - - 1,800,000

101728 Taxiway C Rehabilitation West 700127 Open 3,626,819 4,041,607 - -

101734 Police Records Mgmt Sys Up - Open - 6,941 157,500 62,500

101735 System Furniture - HR - Closed 11,092 - - -

101742 Parking Servers Upgrade - Closed 34,799 17,163 - -

101749 Pavement Temp Sensor Port Cost 700134 Closed 22,499 226,230 - -

101768 HQP2 Slurry Seal 700138 Closed - 14,978 - -

101769 P1 Ticket Gate PavementReplace 700139 Closed - 23,094 - -

101770 Upper Outer Rd PCC Seal 700139 Closed 8,316 113,177 - -

101771 Economy Lot Rehab 700139 Open 2,901 48,969 364,000 777,000

101772 Terminal Roadway Rehab 700139 Open - 178,815 575,000 2,775,000

101773 Red Lot NW Corner Reconstruct 700139 Open 5,094 430,531 2,311,800 -

101774 Blue Lot Bus Route Rehab 700139 Open 2,740 48,481 422,000 839,000

101775 North Vendor Gate Access Road 700139 Open - - 56,000 -

101776 East Economy Lot Bus Route 700139 Open 2,901 47,376 290,000 618,500

101777 Airport Way Rehabilitation 700139 Open - 73,050 620,000 805,000

101781 PDX Energy Conservation 700149 Open - - 400,000 290,000

101809 NREX28G GlideslopeDitchGrading 700052 Closed 6,105 32,152 - -

101810 Replace ARFF Extrication Equip - Open 23,554 3,498 - -

101813 S. Atrium Roof Ladder Replace - Closed - 133,236 - -

101815 Wildlife Access South Phase 2 - Open - 204,827 - -

101816 OfficeFurnReplaceforFireChief - Closed - 10,281 - -

101820 FY12/13 PavementMicrosurfacing - Open - 55,143 - -

101823 Common Use Gate Improv 2012 700144 Open - 379,690 - 400,000

101826 Carpet Repl Rental Car Center 700086 Open - - 50,000 80,000

101827 Elevator Replacement Motor - Closed - 34,570 - -

101828 FIS Improvements Project - Open - - 378,972 -


81



NumberStatus


FY12-13 Actual

FY13-14 Budget

FY14-15 Budget

101833 Series 2012B PFC Refund Bonds - Open - (29,632) - -

101836 Resource Management System 700144 Open - 1,761 - -

101838 DD-Central Apron E Joint Rehab - Open - - 113,000 202,000

101839 Replace Air Compressors - Open - 26,569 - -

101845 HQ-P2 Fire Sprinkler MIC Mitig - Open - 29,012 185,000 -

101846 Airfield Vehicles 2012-13 - Open - 103,842 - -

101849 Terminal Vehicles 2012-13 - Open - 77,671 - -

101901 Airfield Microsurfacing 2015 - Candidate - - - 100,000

101905 A/L Prop Microsurfacing 13/14 700152 Open - - 40,000 -

101906 A/L Prop Microsurfacing 14/15 700152 Candidate - - 14,500 202,500

101917 IT Alternate Carrier Access - Candidate - - - -

101919 ARFF Fire Alrm Sys Imprv 13/14 - Open - - 46,325 185,400

101924 Capstone Wetland Mitigation 700150 Open - - - -

101929 Comm Infrastructure Upgrades - Open - 23,613 102,000 36,700

101933 Deicing CST 1 Coating - Open - - 38,000 147,000

101935 Economy Exit Plaza Rehab 14/15 - Candidate - - - 300,000

101936 Economy Lot E-Zone Convrsn - Open - 16,451 215,000 491,000

101937 Food Court Trsh/Recyclng Upgrd - Candidate - - 320,000 -

101938 Force Avenue Tree Bank - Candidate - - - -

101939 Landside Microsurfacing 13/14 700156 Open - 30,122 370,000 -

101941 Microsurfce Fire Dept Entry Rd 700159 Candidate - - - 5,600

101942 Rehab Employee Parking Bus Route 700163 Candidate - - - 200,000

101944 Rehab Airtrans Way 700164 Candidate - - - 135,000

101949 IT GRE Equip Upgrade - Candidate - - - 75,000

101956 Hangar H & K Hangar Doors - Candidate - - 53,000 -

101979 ORANG Parcel C Modifications - Open - 12,811 630,000 1,670,000

101980 P2-Rental Car 1st Flr Sealing - Closed - - 167,600 -

101982 PDX Cargo Center Ext Rehab - Open - - 40,000 160,000

101987 PDX N Cargo Rehab - Candidate - - 97,000 -

101992 P1 Alarm System Upgrade - Candidate - - - -

101994 Perimeter Road Rehabilitation - Candidate - - 300,000 300,000

101995 IT Power Monitoring Systm Upgr - Candidate - - - 100,000

101996 Rehab Deicing Pumps - Candidate - - - 100,000

101997 Rehab Ecn/EmplyBusShltrs 14/15 - Candidate - - - 1,130,000

102006 SW Quad Drainage Rehab - Open - - 60,000 240,000

102010 IT PDX Network Core Upgr - Candidate - - - 500,000

102011 IT Comm Center Renewal - Open - - - 700,000

102018 IT EQ Term Monitors Replace - Candidate - - 767,000 767,000

102022 Terminal Grease Separation 700153 Open - 60,066 250,000 1,900,000

102023 TEIP-Ticket Lobby Exitways - Open - - 1,875,000 4,480,000

102081 VE Airport Vehicles 13/14 - Candidate - - 405,000 -

102082 VE Port Vehicles 13/14 - Open - - 30,000 -

102083 VE Shared Vehicles 13/14 - Open - - 113,000 -

102086 VE Airport Vehicles 14/15 - Candidate - - - 35,000

102087 VE Port Vehicles 14/15 - Candidate - - - 125,000

810009 I-205 AW Big Fix - Open 4,245 3,545,163 - -


82



NumberStatus


FY12-13 Actual

FY13-14 Budget

FY14-15 Budget

810013 Alderwood&CornF-47th Trans Imp - Closed 47,040 - - -

810020 Alderwood Columbia Cully (TIP) - Candidate - - - -

810058 MarDr LeveeDredgeSleeveDecom* - Closed - 106,061 - -

810059 Alderwood Path Rehab* - Open 1,426 44,332 - -

102164 7303 Roof & HVAC Replacement - Candidate - - - 80,520

101778 Air Cargo Rd Rehab 700139 Candidate - - - 200,000

101861 Airfield Signage Replacement - Candidate - - - 61,725

102160 AirfieldLgtngEmergGnrtrRplcmnt - Candidate - - - -

102169 Canopy Netting Replacement - Candidate - - - 216,000

102108 CCC New Freight Elevator 700147 Candidate - - - 200,000

101870 Consolidate Badging & Training 700158 Open - - - 853,000

102187 Cully Feeder Upgrade - Candidate - - - 260,000

102194 CUP VFD Replacement - Open - - - 450,000

102161 DD-GA West Redevelop Phase 1 - Candidate - - - 1,410,000

101875 Deicing Plant Condensate Tank - Candidate - - - 50,000

102155 Deicing Plant WL Mitigation - Candidate - - - 50,000

102168 East Landside SW Enhancements - Candidate - - - 200,000

102195 EQ Term VFD Replacement - Candidate - - - 150,000

102105 FIS Escalators 700147 Open - 18,213 - 2,717,000

102163 Fueling Station Mitigation - Candidate - - - 50,000

102185 HQ IT Training Rm Upgrades 700165 Candidate - - - 45,000

102188 IT Bag Claim LED Replacement - Candidate - - - 970,000

102203 IT EQ ARFF AV Upgrade - Candidate - - - 60,000

102198 IT EQ IVR Upgrade - Candidate - - - 75,000

102201 IT EQ Term EOC AV Upgrade - Candidate - - - 75,000

102158 IT Fire Crash Phone - Candidate - - - 50,000

102159 IT Fire Station Alarm Tapout - Candidate - - - 125,000

102189 IT Term Advertising Infra Imp - Candidate - - - 950,000

102172 Microsurfce Delta RD/RDCON-02 700159 Candidate - - - 13,000

102107 Parking Elevators 700147 Closed - 822 - -

102126 Parking Structure Elevators 700147 Open - - - 100,000

101856 PDX Shared Energy Conservation 700149 Open - - - 93,000

102182 RehabMaintenanceAnnexParking 700163 Candidate - - - 37,500

102165 Revenue Control Space Mods - Candidate - - - 250,000

102134 Shared Vehicles 14/15 - Candidate - - - 255,000

810062 Sleeve B7 Pipe to Slough-MCDD - Candidate - - - 300,000

102196 T1612 HVAC Improvement - Candidate - - - 30,000

101888 TEIP Terminal Balancing-Core 700170 Open - - - 15,660,000

101889 TEIP Terminal Balancing-TI 700170 Open - - - 13,340,000

102202 TEIP-CCD West HVAC Replace - Candidate - - - 2,600,000

102199 TEIP-Energy Consv Prgm-PDXTerm - Candidate - - - 778,000

101857 Term Concourses GGI 700153 Candidate - - - 1,860,000

102106 Terminal Elevators 700147 Open - 1,359 - -

100519 PDX AS400 Upgrade 10-11 - Candidate - - 65,000 -

100772 Waste Reduction Equipment - Candidate - - 75,000 -

100895 Terminal Info-Monitors Renewal - Candidate - - 500,000 500,000


83



NumberStatus


FY12-13 Actual

FY13-14 Budget

FY14-15 Budget

101064 AM ARFF-Critical - Candidate - - 125,000 -

101837 Concession Redevelopment - Candidate - - 830,000 20,000

101900 Airfield Microsurfacing 2014 - Candidate - - 500,000 700,000

101931 DD - PrimeView TW Y & Perm Rd - Candidate - - 772,000 2,978,000

102019 Term People Movers Program - Candidate - - 2,000,000 965,000

101899 PDXNext Term Infrastructure - Candidate - - - 515,000

Grand Total $60,730,657 $69,728,929 $82,178,887 $147,847,297

Total Airport Contruction Fund $60,730,657 $69,728,929 $82,178,887 $147,847,297

Capitalized Labor (9,321,327) (9,566,661) (8,468,089) (8,620,498)

Capital Outlay $51,409,330 $60,162,268 $73,710,798 $139,226,799


84


85

Airport Revenue Bond Fund

The Airport Revenue Bond Fund accounts for the principal and interest payments due on Airport Revenue Bonds. Resources consist of transfers from the Airport Revenue Fund; bond sale proceeds and interest income. In certain years, there are also transfers from the Airport Construction Fund to pay for interest expense while bond-financed assets are being constructed. There are no property taxes associated with Airport Revenue Bonds.


86

Airport Revenue Bond Fund - Resources & RequirementsAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Resources


Bond and Other Debt Proceeds 28,914,347 - 4,400,000 7,500,000 7,500,000 7,500,000




Airport Construction Fund - - 2,200,000 5,500,000 5,500,000 5,500,000

Total Resources $97,393,525 $69,451,721 $75,071,139 $84,379,870 $84,379,870 $84,379,870

Requirements

Principal Payments $53,126,613 $25,880,772 $25,760,000 $25,585,000 $25,585,000 $25,585,000

Interest Payments 23,227,335 22,473,898 23,871,562 25,855,293 25,855,293 25,855,293

Unappropriated Ending Balance 21,039,577 21,097,052 25,439,577 32,939,577 32,939,577 32,939,577


Airport Revenue Bond Debt Service RequirementsAdopted Proposed Approved Adopted

Principal & Interest Actual Actual Budget Budget Budget Budget

2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Principal

PDX Bond Principal: Series 15 $28,741,613 $- $- $- $- $-

PDX Bond Principal: Series 18 5,820,000 7,315,772 7,970,000 9,710,000 9,710,000 9,710,000




PDX Bond Principal: Future Issuances - - - - - -

Total Principal Payments $53,126,613 $25,880,772 $25,760,000 $25,585,000 $25,585,000 $25,585,000

Interest

PDX Bond Interest: Series 15 $5,707,083 $- $- $- $- $-

PDX Bond Interest: Series 18 181,038 5,657,253 5,760,631 5,237,887 5,237,887 5,237,887

PDX Bond Interest: Series 19 6,754,788 6,637,288 6,514,038 6,410,638 6,410,638 6,410,638



PDX Bond Interest: Future issuance - 2,200,000 5,500,000 5,500,000 5,500,000

Total Interest Payments $23,227,335 $22,473,898 $23,871,562 $25,855,293 $25,855,293 $25,855,293


87

Customer Facility Charge (CFC) Fund

The Customer Facility Charge Fund accounts for activity relating to CFCs derived from Portland Interna-tional Airport (PDX).

In December 2013, the Port of Portland Commission approved Ordinance No. 448 authorizing the es-tablishment of a Customer Facility Charge on rental car transactions commencing at PDX. The CFCs collected under Ordinance No. 448 are used to fund rental car related projects and programs. The CFC Fund requirements include transfers to the Airport Revenue and Airport Construction Funds (or any other applicable Fund of the Port) to pay for those project and program costs.


88

CFC Fund - Resources & RequirementsAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Resources

Beginning Working Capital $- $- $- $- $- $-

Customer Facility Charge - - - 13,711,591 13,711,591 13,711,591

Interest and Other - - - - 52,522 52,522


Airport Revenue Fund $- $- $- $6,218,448 $6,218,448 $6,218,448

Total Resources $- $- $- $19,930,039 $19,982,561 $19,982,561

Requirements

Cash Transfers to Other Funds:

Airport Revenue Fund $- $- $- $150,000 $150,000 $150,000

Airport Construction Fund - - - 12,500,000 12,500,000 12,500,000

Total Cash Transfers to Other Funds $- $- $- $12,650,000 $12,650,000 $12,650,000

Contingencies $- $- $- $7,280,039 $7,332,561 $7,332,561

Ending Balance $- $- $- $- $- $-

Total Requirements $- $- $- $19,930,039 $19,982,561 $19,982,561


89

Passenger Facility Charge (PFC) Fund

The Passenger Facility Charge Fund accounts for activity relating to PFCs derived from Portland Interna-tional Airport (PDX).

PFCs are fees authorized by the Aviation Safety and Capacity Expansion Act of 1990 (the PFC Act) and administered by the Federal Aviation Administration (FAA). The PFC Act requires air carriers and their agents to collect the PFCs and to remit collection to the airport once a month. The use of PFCs is regulat-ed by the PFC Act and the FAA to certain types of airport projects.

The PFC Fund requirements include transfers to the Airport Construction Fund (or any other applicable Fund of the Port) to pay for the costs of projects or portions of projects that have been approved for PFC use by the FAA. The requirements also include transfers to the PFC Bond Fund for debt service pay-ments and other costs relating to outstanding PFC Revenue Bonds.


90

PFC Fund - Resources & RequirementsAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Resources


Passenger Facility Charge 27,686,267 29,339,099 28,882,964 31,613,275 31,613,275 31,613,275

Bond and Other Debt Proceeds 76,594,566 - - - - -

Interest and Other 234,910 66,850 48,600 36,920 36,920 36,920


Airport Construction Fund $- $- $- $- $- $-

Total Resources $117,943,112 $57,472,779 $61,348,240 $59,477,496 $59,477,496 $59,477,496

Requirements

Other Requirements

Letter Of Credit / Other Bond Fees $602,980 $294,413 $10,000 $10,000 $10,000 $10,000

Cash Transfers to Other Funds:

PFC Bond Fund $19,490,343 $13,643,597 $14,300,804 $14,604,877 $14,604,877 $14,604,877

Airport Construction Fund 18,554,925 23,366,314 21,089,250 458,000 458,000 458,000

Airport Revenue Fund 51,228,035 - - - - -


Contingencies $- $- $25,948,186 $44,404,619 $44,404,619 $44,404,619

Ending Balance $28,066,829 $20,168,455 $- $- $- $-



91

Passenger Facility Charge (PFC) Bond Fund

The Passenger Facility Charge (PFC) Bond Fund accounts for principal and interest payments relating to the PFC Revenue Bonds at Portland International Airport (PDX).

Activity in the Fund includes transfers from the PFC Fund to meet debt service requirements on the PFC Revenue Bonds, interest income on the money held therein, and the debt service reserve for the PFC Revenue Bonds.


92

PFC Bond Fund - Resources & RequirementsAdopted Proposed Approved Adopted


2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Resources



Bond and Other Debt Proceeds 4,449,000 85,531,131 - - - -


PFC Fund $19,490,343 $13,643,597 $14,300,804 $14,604,877 $14,604,877 $14,604,877

Total Resources $34,796,825 $114,703,920 $29,805,414 $30,112,028 $30,112,028 $30,112,028

Requirements

Principal Payments $12,195,000 $91,970,000 $5,600,000 $6,160,000 $6,160,000 $6,160,000

Interest Payments 7,125,790 8,418,062 8,729,379 8,475,993 8,475,993 8,475,993

Unappropriated Ending Balance 15,476,035 14,315,857 15,476,035 15,476,035 15,476,035 15,476,035


PFC Bond Fund - Debt Service RequirementsAdopted Proposed Approved Adopted

Principal & Interest Actual Actual Budget Budget Budget Budget

2011-12 2012-13 2013-14 2014-15 2014-15 2014-15

Principal Payments

PFC Issue: Series 1999 A & B $11,350,000 $33,400,000 $- $- $- $-

PFC Issue: Series 2009 A1 & A2 (replaces 1999A) 90,000 90,000 - - - -

PFC Issue: Series 2011 755,000 755,000 1,475,000 1,505,000 1,505,000 1,505,000

PFC Issue: Series 2012A (replaces 2009 A1 & A2) - 57,725,000 100,000 105,000 105,000 105,000

PFC Issue: Series 2012B (replaces 1999B) - - 4,025,000 4,550,000 4,550,000 4,550,000

Total Principal Payments $12,195,000 $91,970,000 $5,600,000 $6,160,000 $6,160,000 $6,160,000

Interest Payments

PFC Issue: Series 1999 A & B $2,074,787 $558,029 $- $- $- $-

PFC Issue: Series 2009 A1 & A2 (replaces 1999A) 2,875,913 2,796,860 - - - -

PFC Issue: Series 2011 2,175,091 3,764,525 3,721,775 3,677,525 3,677,525 3,677,525

PFC Issue: Series 2012A (replaces 2009 A1 & A2) - 459,500 3,873,604 3,865,718 3,865,718 3,865,718

PFC Issue: Series 2012B (replaces 1999B) - 839,149 1,134,000 932,750 932,750 932,750

Total Interest Payments $7,125,790 $8,418,062 $8,729,379 $8,475,993 $8,475,993 $8,475,993


93

Appendix


94


95

Discount Cancellation & Property Tax Allowed Adjustments Revenue

Budget 2012-13 10,199,790$ (254,995)$ (407,992)$ 9,536,804$ (2.5%) (4.0%) 93.5%

Budget 2013-14 10,422,454$ (260,561)$ (416,898)$ 9,744,994$ (2.5%) (4.0%) 93.5%

Budget 2014-15 10,868,218$ (271,705)$ (706,435)$ 9,890,078$ (2.5%) (6.5%) 91.0%

Estimated Actual Estimated Actual

FY 2012-13 145,503,430,321$ 144,865,503,296$ 2.9% 2.1%FY 2013-14 148,679,811,998$ 150,552,316,892$ 2.5% 3.9%FY 2014-15 155,038,775,935$ 2.6%

Estimated Actual per TSCC Difference Assessed Value

FY 2012-13 10,199,790$ 10,155,072$ (44,718) 0.0701FY 2013-14 10,422,454$ 10,553,717$ 131,263 0.0701FY 2014-15 10,868,218$

Estimated Actual Tax Revenue Estimated Actual

FY 2012-13 9,536,804$ 9,536,804$ 0.94FY 2013-14 9,744,994$ -$ 0.94FY 2014-15 9,890,078$ 0.91

Property Tax Levy and Collection Estimates

Assessed Value Assessed Value Growth

Tax Levy

Taxes Received % of Taxes Received

Levy Rate per $1,000

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year Tax Levy


96

Personnel Services Summary

Adopted Proposed Approved AdoptedFull Time Equivalent (FTE) Positions Budget Budget Budget BudgetFY Budget to FY Budget 2013-14 2014-15 2014-15 2014-15

Operating Divisions

Commercial Aviation (1) 362.2 362.3 362.3 362.3 General Aviation 8.0 8.0 8.0 8.0 Marine (2) 92.0 91.0 84.0 84.0 Industrial Development 16.0 16.0 23.0 23.0 Navigation Division 41.0 38.5 37.4 38.5Total Operating Divisions 519.2 515.8 514.7 515.8

Administration Divisions

Engineering 76.0 79.0 79.0 79.0 Development Services and Information Technology 57.2 58.5 58.5 58.5 Corporate Administration 133.3 136.0 136.0 136.0Total Administration Divisions 266.5 273.5 273.5 273.5

Total Port Employees 785.7 789.3 788.2 789.3

Ratio: Admin. to Operating 0.51 0.53 0.53 0.53

(1) Firefighters were re-stated to reflect a 2080 hour basis. Presently they work 2,750 hours annually.

(2) Excludes Longshore employees


97

Employee Benefit Tables

Benefit Cost - Annual Cost by Benefit Type (Total Port)Adopted Proposed Approved Adopted

Benefit Type Actual Budget Budget Budget Budget2012-13 2013-14 2013-14 2014-15 2014-15

FICA 4,627,231 4,832,725 5,028,778 5,027,500 5,033,833 PERS 8,771,381 9,285,745 9,653,755 9,657,014 9,667,761 Health (Medical, Dental & Vision) 12,231,613 13,964,607 14,316,217 14,326,480 14,345,492 Life, Disability, Other 831,987 572,611 594,790 594,918 595,654

Total 26,462,212 28,655,689 29,593,540 29,605,912 29,642,740

Benefit Cost as a Percentage of Total Salary (Total Port)Adopted Proposed Approved Adopted

Benefit Type Actual Budget Budget Budget Budget2012-13 2013-14 2013-14 2014-15 2014-15

FICA 7.46% 7.38% 7.69% 7.30% 7.29%PERS 14.14% 14.18% 14.77% 14.02% 14.00%Health (Medical, Dental & Vision) 19.72% 21.33% 21.90% 20.80% 20.78%Life, Disability, Other 1.34% 0.87% 0.91% 0.86% 0.86%

Total 42.65% 43.76% 45.27% 42.99% 42.94%


98

Statement of Indebtedness (Port of Portland Obligation)

July 1 July 1 July 1 July 12012 2013 2014 2015

Bonds Outstanding

Bonded Debt

Port ObligationLimited Tax Pension Bonds Series 2002 50,359,573$ 49,567,305$ 48,738,665$ 47,892,565$ Limited Tax Pension Bonds Series 2005 18,945,000 18,510,000 18,000,000 17,410,000 Subtotal Port Obligation 69,304,573$ 68,077,305$ 66,738,665$ 65,302,565$

PDX DebtRevenue Bonds 458,295,000$ 432,385,000$ 406,625,000$ 488,540,000$ Passenger Facility Charge (PFC) Bonds 162,170,000 153,800,000 148,200,000 142,040,000 Subtotal PDX Debt 620,465,000$ 586,185,000$ 554,825,000$ 630,580,000$

Subtotal Bonded Debt 689,769,573$ 654,262,305$ 621,563,665$ 695,882,565$

Other Debt

City of Portland L.l.D. 6,766,041$ 6,285,692$ 5,779,156$ 5,245,005$ Connect Oregon 8,042,302 8,284,300 7,341,600 6,398,900 State of Oregon Notes: OBDD 11,019,844 10,600,749 10,170,983 9,730,289 Dredge Oregon Repower Loan - 15,031,745 14,308,064 13,551,138 Capitalized Leases 2,879,016 2,583,070 2,281,079 - Subtotal Other Debt 28,707,203$ 42,785,556$ 39,880,883$ 34,925,332$

Total Port Indebtedness 718,476,776$ 697,047,861$ 661,444,548$ 730,807,897$

Industrial Development Revenue Bonds(Obligation of Lessee or Owner of Facility)Columbia Grain Inc. 38,100,000$ 38,100,000$ 38,100,000$ -$ Horizon Air lndustries, Inc. 17,300,000 17,300,000 17,300,000 17,300,000 Portand Bulk Terminals, L.L.C. Series 2006 71,000,000 71,000,000 71,000,000 71,000,000 Total 126,400,000$ 126,400,000$ 126,400,000$ 88,300,000$


99

In

terfu

nd T

rans

fers

Gene

ral F

und

Desc

riptio

n

Marin

eInd

ustria

l De

velop

ment

Gene

ral

Aviat

ionNa

vigati

on

Admi

nistra

tion

Othe

rAi

rpor

t Rev

e-nu

e Fun

dBo

nd C

on-

struc

tion F

und

Airp

ort C

on-

struc

tion F

und

CFC

Fund

PFC

Fun

dTo

tal(A

lloca

ted

Supp

ort)

Othe

r Env

iro-

menta

l

Alloc

ated S

uppo

rt Se

rvice

s & In

trafun

d Tra

nsfer

s

Alloc

ated S

uppo

rt Se

rvice

s

Allo

catio

n $5

,309,5

93

$1,89

8,192

$9

15,94

1 $2

,182,1

31

$-

$1,18

0,341

$-

$2

3,845

,630

$-

$-

$-

$-

$35,3

31,82

7

E

xecu

tive

- -

- -

(13,7

97,37

8) -

- -

- -

- -

(13,7

97,37

8)

F

inanc

e & A

dmini

strati

on -

- -

- (2

1,534

,449)

- -

- -

- -

- (2

1,534

,449)

Total

Allo

cated

Sup

port

Servi

ces

$5,30

9,593

$9

15,94

1 $2

,182,1

31 $

(35,3

31,82

7) $1

,180,3

41

$-

$23,8

45,63

0 $-

$-

$-

$-

$-

Inter

fund &

Cas

h Tra

nsfer

s

Inter

fund T

rans

fers T

o:

Gene

ral F

und

$-

$-

$-

$-

$-

$-

$-

$25,0

95,80

1 $3

,044,7

75

$7,36

1,995

$-

$-

$3

5,502

,570

Airp

ort R

even

ue F

und

346,0

05

36,85

7 97

,153

- 4,

699

- -

- 19

,776

1,25

8,503

-

- 1,

762,9

92

Total

Inter

fund T

rans

fers

$346

,005

$36,8

57

$97,1

53

$-

$4,69

9 $-

$-

$2

5,095

,801

$3,06

4,551

$8

,620,4

98

$-

$-

$37,2

65,56

2

Cash

Tran

sfers

To:

Gene

ral F

und

$-

$-

$-

$-

$-

$-

$-

$3,24

4,267

$-

$-

$-

$-

$3

,244,2

67

Bond

Con

struc

tion F

und

- -

- -

- -

23,20

3,630

7,

038,5

01

- -

- -

30,24

2,131

Airp

ort R

even

ue F

und

- -

- -

- -

- -

10,00

0 -

150,0

00

- 16

0,000

Airp

ort C

onstr

uctio

n Fun

d -

- -

- -

- -

26,85

8,003

-

- 12

,500,0

00

458,0

00

39,81

6,003

Airp

ort R

even

ue B

ond F

und

- -

- -

- -

- 45

,917,5

05

- 5,

500,0

00

- -

51,41

7,505

CFC

Fund

- -

- -

- -

- 6,

218,4

48

- -

- -

6,21

8,448

PFC

Bond

Fun

d -

- -

- -

- -

- -

- -

14,60

4,877

14

,604,8

77

Total

Cas

h Tra

nsfer

s $-

$-

$-

$-

$-

$-

$2

3,203

,630

$89,2

76,72

4 $1

0,000

$5

,500,0

00

$12,6

50,00

0 $1

5,062

,877

$145

,703,2

31

Total

Inter

fund &

Cas

h Tra

nsfer

s $3

46,00

5 $3

6,857

$9

7,153

$-

$4

,699

$-

$23,2

03,63

0 $1

14,37

2,525

$3

,074,5

51

$14,1

20,49

8 $1

2,650

,000

$15,0

62,87

7 $1

82,96

8,793


100

Risk Management Insurance Plan

EXECUTIVE SUMMARY

The Port funds its exposure to losses arising out of the Port’s business operations through an insurance plan consisting of a combination of self-insured and commercially insured programs. The plan is de-signed to self-insure predictable losses arising from normal business activities and transfer catastrophic loss potentials to commercial insurers.

The goals of the insurance plan are to:

• Maintain the types, amounts and combination of commercial insurance and self-insurance nec-essary to protect the Port against financial loss arising from its business activities;

• Maintain the types and amounts of insurance required by any applicable laws and ordinances;

• Manage/reduce impacts to the Port’s budget from changes in insurance market conditions.

To the extent that commercial insurance is available at reasonable and economical costs or required by law, the Port’s Insurance Plan will include the following types of commercial insurance:

• Comprehensive General Liability Insurance covering the legal and contractual liability of the Port for bodily injury and property damage with respect to the Port’s ownership, development, oper-ation or other interest in owned or leased premises;

• Workers’ Compensation Insurance covering obligations under the Workers’ Compensation Law;

• Commercial Property Insurance and business interruption insurance covering physical loss or damage to insurable Port property;

• Hull and Machinery Insurance and Protection and Indemnity Insurance covering physical loss or damage to scheduled vessels, including liability of the Port under the Jones Act;

• Commercial Crime Insurance or surety bonds to protect the Port against loss of assets from disappearance, dishonesty or destruction;

• Public Officials and Employee Liability Insurance covering damages that the Port becomes le-gally obligated to pay as a result of any wrongful act of directors, officers, employees, and/or Commissioners; committed by performing or failing to perform duties of the Port.


101

To the extent that self-insurance is reasonable, economical and allowed by law, the Port may self-insure some or all of the following exposures:

• Workers’ Compensation Liability;

• Automobile Liability and Automobile Physical Damage.

To the extent that commercial insurance is not available in the market or is not reasonable and econom-ically priced, the Port may not purchase insurance or amounts purchased may be less than predictable exposure to loss. This may apply to the following types of insurance:

• Gradual Environmental/Pollution Liability;

• War and Terrorism Liability;

• Earthquake and Flood Insurance.

Premiums associated with insured programs and costs associated with the self-insured workers’ compen-sation program are included in the operating departments’ budgets. Other costs associated with self-in-sured programs are paid from working capital.


102

Glossary of Terms

Administrative Divisions

Generally defined as Engineering, Executive Administration, Public Affairs (Media & Government Relations, Environ-mental Affairs, and Corporate Marketing) Financial & Administrative Services, Information Technology, Development Services Administration, Human Resources, and Legal.

Allocated support service expenseAdministrative expenses (not including Engineering) distributed to operating divisions for recovery purposes based on an established formula.

Beginning working capitalThe estimated beginning balance of the fund.

Bond sale proceedsMoney received from bond sales.

Candidate ProjectInternally, two types of Capital projects are in the proposed or development stage. Candidate Yes projects which have been given the approval to utilize resources to further develop the business case, scope, budget estimate, project plan to a point where it can be considered by the approval committee to open the project. Candidate No projects which are not actively being developed, but placed on the list as a future need.

Capital outlayMajor expenditures which result in the acquisition of, or, additions to fixed assets, including land, land improvements, buildings and additions, other structures, machinery, and equipment.

Citation RevenueRevenue generated through the issuance of citations at Portland International Airport.

Consolidation pool revenueRevenue obtained from combining container cargo from different steamship lines to obtain favorable rail rates on containers shipped east of Denver.

ContingenciesEstimates for expenditures which cannot be foreseen and planned for in the budget either because of the occurrence of some unplanned event or because of insufficient data at the time the budget is compiled.

Corporate AdministrationCorporate Administration is comprised of Executive Administration, Public Affairs (Media & Government Relations, Environmental Affairs, and Corporate Marketing) Financial & Administrative Services, Information Technology, Devel-opment Services Administration, Human Resources, and Legal.

Cost allocationEngineering Division costs are charged directly to projects when the service is provided. The Administrative divisions also charge direct costs to users. The remaining indirect costs in the Administrative divisions are allocated to the op-erating divisions as allocated support service expense.


103

Direct transfer capitalized costsDirect in-house services provided for capital projects.

Ensuing yearThe budget year; in this case, it’s Fiscal Year 2014-15.

Equipment fuel and lubricantsExpenses for fuel or lubricants used in the operation of equipment.

Fiscal Year (FY)A 12-month period beginning July 1 and ending June 30.

Fixed chargesExpenses for insurance, rent, and property taxes.

Full-time equivalent position (FTE)One FTE equates to 2,080 working hours in a year; excludes overtime hours.

GrantsEstimated grants to be received from federal and state government sources.

Interest on investmentsInterest earned through investment of cash balances.

Interfund transfersPayment for services provided to a division in a different fund.

Land sale proceedsRevenues generated by land sales.

Longshore contract servicesSalaries, wages, and other payroll expenses paid to International Container Terminal Services, Oregon (ICTSI, Ore-gon) for longshore contract services.

Management and travel expensesExpenses for memberships, dues, subscriptions, promotional, employee education, local and out of town travel, and miscellaneous management activities.

Materials and suppliesPurchase of materials and supplies which have a short life and are usually low in cost.

Miscellaneous expensesExpenses not accounted for elsewhere, including bad debts.

Open ProjectA category of capital projects which are in process to some degree. Costs are being incurred.


104

Operating DivisionThe operating divisions are Marine & Industrial Development, Commercial Aviation, General Aviation, and Navigation divisions.

Operating revenueRevenue resulting from sales or service to customers

Other revenueMiscellaneous operating revenue not specifically defined.

Outside service expenseExpenditures for services procured from outside the Port.

Personnel servicesSalaries, wages, benefits and other payroll expenses paid to Port employees (does not include longshore contract services).

Rental and concession revenueRevenue generated through space rentals and percentage of concessionaire revenues.

RevenuesMonies earned through the operation or use of Port land facilities or services.

Second ensuing yearThe fiscal year immediately following the budget year.

Services providedCredits for specific and direct services provided to another Port division.

Services receivedCharges for specific and direct services received from another Port division.

Service revenueRevenue generated by performing a specific service, generally equipment oriented, including rental.

Total project costTotal cost of a project.

Unappropriated Ending BalanceThe estimate intended to provide working capital or cash balance to finance activities for the period between July 1 of the ensuing fiscal year and the time when sufficient new revenues become available to meet cash flow needs of the fund.

UtilitiesCost of electricity, water, telephone, natural gas, sewer, etc…

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