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Revenue is projected to be higher partly because of some upward adjustments to long-term leases, as well as a few more ship visits at the marine terminal and potentially some new business for the marine terminal and the port’s peninsula properties, finance director Kevin Ferguson said. That potential new business won’t be disclosed until the port gets a deal in place, he said.
The port had projected $8.6 million in operating revenue for 2011, but that now is expected to fall to $8.3 million by year’s end because of some state Department of Transportation-related work that did not materialize this year. The port had been in the running as a possible building site for large, concrete pontoons that would be used as part of the new state Route 520 floating bridge over Lake Washington in King County. It’s not entirely clear if the port is completely out of the running, and Executive Director Ed Galligan said there’s still a chance the port might be able to capture some of that business.
The port divides its operations into four divisions: Olympia Regional Airport and New Market Industrial Campus; Swantown Marina and Boatworks; the marine terminal; and peninsula properties such as East Bay and NorthPoint.
Of the $8.73 million in total projected revenue for 2012, the marine terminal is expected to kick in the largest share at $3.2 million. The marine terminal has been central to the port’s operations of late as tenants such as Weyerhaeuser and Pacific Lumber and Shipping continue to export logs to Japan, China and South Korea. About 20 ships a year are calling on the port, and three more ships are expected to arrive in December.
A busy marine terminal, though, means slightly higher expenses for more dockworker labor. Total port operating expenses for next year are projected at $5.2 million, up from $4.7 million this year. To control expenses, the port is focused on periodic maintenance of its facilities to avoid large capital costs and it expects no new hiring next year, keeping its staff in the range of 42 to 45 people, Ferguson said.
“We’re growing revenue, we’re staying focused on limiting expenses, and we’re trying to be aware that new maintenance projects will allow us to save on big future capital expenses,” he said.
The port also has 32 capital projects set for next year. Some of these are the design and engineering work for a new marine fueling station, airport taxiway renovations and a new water treatment plant for the Cascade Pole site at the north end of the port peninsula.
The port also projects $8.6 million in grant revenue, $4.7 million in property tax revenue and $3.1 million in depreciation costs. The port’s property tax levy rate is about 15 cents per $1,000 of assessed valuation. Port districts are allowed by law to collect up to 45 cents per $1,000 of assessed value, and every port district in the state – there are 75 – does except the Port of Kalama on the Columbia River, because its tax base is too small. The Port of Olympia uses its tax revenue for environmental cleanup and to pay down bonds. A public hearing on the budget is set for Nov. 14, and the commission is expected to adopt it Nov. 28.
Rolf Boone: 360-754-5403
rboone@theolympian.com
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