MANAGEMENT’S DISCUSSION AND ANALYSIS Financial Statements (Continued) Total fiscal year 2020 operating expenses of the Authority were $343,323 or 5.5% greater than fiscal year 2019 expenses of $325,548. Fiscal year 2019 expenses were 11.5% greater than fiscal year 2018 expenses of $291,963. The net expense increase during the past two years was primarily attributable to operating activities from increased cargo volumes. Operating incomes of $138,405 and $148,071 for fiscal years 2020 and 2019, respectively, were the result of the different growth rates in revenues and expenses. Non-operating income / (expense) for fiscal years 2020 and 2019 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 2020, gain on disposal of capital assets was $422, which compared to the fiscal year 2019, when Georgia Ports Authority sold 5 parcels within the Savannah River International Trade Park resulting in a gain of $39,245, and fiscal year 2018 impairment loss of capital assets of $5,491 due to the ceased operation at the Colonel’s Island Bulk Facility. In fiscal years 2020, 2019 and 2018 respectively, $25,000, $0 and $2 were received from the State of Georgia for G.O. Bond non-capital contributions. Capital contributions during fiscal years 2020 and 2019 included capital contributions from the Federal government, which were $5,753 and $21,047. Capital Asset and Debt Administration Capital Assets: The Authority’s investment in capital assets was $1,460,779 as of June 30, 2020 representing a 11.5% increase for the year, and $1,310,360 as of June 30, 2019 representing a 14.8% 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: Rail additions at Garden City Terminal Purchase and upgrade Ship-to-Shore Container Cranes Purchase and upgrade Rubber-Tired-Gantry Cranes Purchase Rail Mounted Gantry Cranes Dock and Berth upgrades at Garden City Terminal Dock and Berth upgrades at Ocean Terminal Colonel’s Island paving and land improvements Properties acquisitions Purchase Empty Handlers Additional information on the Authority’s capital assets can be found in Note 3 to the financial statements. 11
