MANAGEMENT’S DISCUSSION AND ANALYSIS Financial Statements (Continued) Total fiscal year 2021 operating expenses of the Authority were $397,267 or 15.7% greater than fiscal year 2020 expenses of $343,323. Fiscal year 2020 expenses were 5.5% greater than fiscal year 2019 expenses of $325,548. The net expense increase during the past two years was primarily attributable to operating activities from increased cargo volumes. Operating incomes of $218,162 and $138,405 for fiscal years 2021 and 2020, respectively, were the result of the different growth rates in revenues and expenses. Non-operating income / (expense) for fiscal years 2021 and 2020 includes investment income, gain/(loss) on sale / impairment of capital assets, and expense for harbor deepening costs, as well as repayments of capital contributions to the State of Georgia. During fiscal year 2021, loss on disposal of capital assets was $7,889 resulting from the disposal of six Ship-to-Shore Cranes and the demolition of Container Berth 1, which compared to the fiscal year 2020, gain on disposal of capital assets of $422, and fiscal year 2019, when Georgia Ports Authority sold 5 parcels within the Savannah River International Trade Park resulting in a gain of $39,245. In fiscal years 2021, 2020 and 2019 respectively, $10,871, $25,000 and $0 were received from the State of Georgia for G.O. Bond non-capital contributions. Capital contributions during fiscal years 2021 and 2020 included capital contributions from the Federal government, which were $21,047 and $5,753. Capital Asset and Debt Administration Capital Assets: The Authority’s investment in capital assets was $1,589,653 as of June 30, 2021 representing an 8.8% increase for the year, and $1,460,779 as of June 30, 2020 representing a 11.5% increase over the prior year. These investments in capital assets include land, buildings, improvements, and machinery. Major capital investments during the past two fiscal years included the following: • Purchase and upgrade Ship-to-Shore Container Cranes • Purchase and upgrade Rubber-Tired-Gantry Cranes • Properties acquisitions • Dock and Berth upgrades at Ocean Terminal • Rail additions at Garden City Terminal • Purchase Rail Mounted Gantry Cranes • Dock and Berth upgrades at Garden City Terminal • Colonel’s Island paving and berth improvements Additional information on the Authority’s capital assets can be found in Note 3 to the financial statements. 11
