Port of Grays Harbor

Special Commission Meeting

October 6, 2017

The Port of Grays Harbor Special Commission Meeting on October 6, 2017 was called to order at 1:04 p.m.

Art Blauvelt, Legal Counsel, led the meeting in the Pledge of Allegiance.

Those in attendance at the meeting were as follows:

COMMISSION AND STAFF

Chuck Caldwell - Commissioner
Stan Pinnick - Commissioner
Jack Thompson - Commissioner
Arthur Blauvelt - Legal Counsel
Gary Nelson - Executive Director
Mary Nelson - Director of Finance & Administration
Leonard Barnes - Deputy Executive Director
Mike Johnson - Contract and Project Manager
Alissa Shay - Manager of Business Development
Molly Bold - Westport Business Manager
Shannon Anderson - Business & Trade Development Assistant
Keya Bernhardt - Communication and Administration Coordinator
Lisa Benn - Accounting Manager

VISITORS
Shelli Hopsecger - Coast Controls & Automation, Inc.

Items discussed are as follows:

WORKSHOP: 2018 Preliminary Budget
2018 Preliminary Budget & Capital Investment Plan
Mary Nelson presented the draft 2018 proposed preliminary budget and capital investment plan. She pointed out priorities included in the budget that help Grays Harbor stay competitive, and the importance of focusing on current customer relations and services. Many other important decisions for balancing debt service and maintenance projects have contributed to financial stability. Another important priority is to make sure we are staying the course with our strategic plan.

Business development strategies have resulted in long-term customer partnerships including; private facility investments, diversity of commodities and industries, and a greater diversity in Port operations. The 2018 Budget growth and strategic planning focuses on managing new activity level, infrastructure needs, and service requirements. Partnering with long-term business ventures will ensure success.

The draft 2018 preliminary budget includes total revenues of $36 million including $28 million from operations, and $4.8 million in grants for financing capital improvement projects. Budgeted expenses total $38 million, including $10 million in capital projects, and $2.5 million in debt service payments. The Port’s cash balance is expected to be $18 million at the end of 2018.

Mary Nelson reported that the property tax levy has been included in the budget at an amount of $2,495,000 which is an increase of 1% over the prior year. This proposed property tax levy would result in the levy rate going down by 2.2% to $0.403. The proposed property tax would be used solely for investment in Port infrastructure, and be a key resource to leverage private investment in PGH facilities in order to create new jobs for the Grays Harbor community. It would also meet bond rating expectations to maximize the Port’s ability to respond to economic development priorities through bond financing. Further discussion focused on the status of the Port’s banked levy capacity, capital needs particularly in light of the continued delay to pass a State Capital Budget, and the possibility of reinstating the banked capacity with the Port’s 2018 property tax levy.

Mary Nelson mentioned there will be another review of the budget and the 2018 Preliminary Budget will be made available to the public next week at the regular Commission meeting on October 10th.

Each Commissioner commended staff on the excellent budget strategies that have improved the Port’s financial position over the years.

The Special Meeting adjourned at 2:48 p.m.