In the black
First year of port operation under new board described as ‘very good year’
The Port of Sydney Development Corp. finished its first year of operation under its new board of directors in the black, well above its budgeted surplus, its annual general meeting heard Wednesday.
According to its audited financial statements, the port finished the 2016-2017 fiscal year with a surplus of $172,743, which was up from a surplus of $127,758 a year earlier. It had budgeted for a surplus of $14,665, but was buoyed by higher than anticipated revenues in areas including passenger tax, berthage rentals and events.
Expenses were down from last year but higher than budgeted.
On the expense side, salaries and benefits were $738,136, up from the $686,481 that had been budgeted as the port hired a business development manager.
Darren Chiasson of auditor MGM Associates said there was a deficit of $199,425, adding that is because revenue the port received to fund some of its assets was already recorded and was parked in the port’s surplus, but will be drawn down on an amortization charge over time.
“That’s largely due to accounting rules and timing of government funding versus when you can expense your capital assets,” he said.
Chiasson called it “a very good year.”
The port’s total financial assets for 2017 were $609,780 compared with financial liabilities of $1,631,953, which was down from $1,790,205 a year earlier.
Its non-financial assets — capital assets including the wharf — stood at $5,933,812 at the end of 2017.
“The accumulated surplus of $4.9 million, that is the result largely of the accounting for accounting funding, as you can see in the assets there’s not $4.9 million sitting in a bank account anywhere,” Chiasson said.
The port made a $200,000 payment to the CBRM for its lease arrears last March 31 and will make another payment of $165,000 by March 31 this year, said port CEO Marlene Usher.
Dist. 6 Coun. Ray Paruch asked about the trust fund comprised of money left over from the dredge of Sydney harbour. There was $203,537 spent from it during 2016-17 including $84,694 to monitor the contained disposal field, $87,300 for the HATCH rail study, $25,974 for consulting fees and $5,569 for legal fees. Usher said there is currently about $1.1 million left in that fund.
When discussing the coming year’s $157,000 capital budget, Usher said planned projects are a secondary lift pump system, adding to kiosks, a security shelter and marina composite docks.
“There are a lot of capital potential projects for the port and the pavilion and as you can imagine we have to manage those with both government funding and cash,” she said.
A large upcoming capital project will be on the south dock where there is a small sinkhole. Usher said they are working with CBRM engineering and estimated it could cost upwards of $2 million.
“It’s not discretionary, it’s essential and some of the funds for that would be included in the second berth but not all of them,” Usher said.
She said it poses no immediate risk but they don’t allow visitors to park there and it does need to be repaired.
Under the 2018-19 operating budget, they have budgeted for $2,183,169 in revenues and $2,249,363 in expenses. For the first time, that includes the portion of Usher’s salary and benefits not covered under its deal with Atlantic Canada Opportunities Agency, which was previously covered by the CBRM.
Before the new board took over last April 1, members of council sat on an interim board.
When it came time to vote to approve agenda items Wednesday, the lone member — the mayor and council — could individually ask questions and discusse among themselves, then reached consensus on whether to approve the motion.
The Port of Sydney Development Corp. was established in 2015, replacing the Sydney Ports Corp. Its mandate includes managing and operating the port, supporting and promoting its development, developing infrastructure, promotion and carrying out its business.