Port of Seattle Posts Net Gain in 1999

Revenues Increase Despite Asian Economic Troubles

SEATTLE -- The Port of Seattle reported a net gain for 1999 despite a downturn in exports to Asia, and a rise in depreciation expenses from major new capital investment.

Port executives are scheduled to present the year's financial figures to Commissioners at a work session today at 1 p.m.

In 1999, Port revenues increased 12.2 percent to $273 million from $243 million in 1998. Net operating income before depreciation rose 5.7 percent to $95 million from $89.9 million in 1998.

The Port posted a net gain of $1.9 million after depreciation and without counting the tax levy or passenger facilities charges. In 1998, the Port reported net income of $3.1 million after depreciation. Depreciation rose in 1999 because of several new capital investments. The Port invested $295 million in new capital during the year.

"We were able to post a net gain in such economically challenging times for our major trading partners, and still lower the tax levy rate. This shows that we are still a strong conduit for growth in our community," said Tom Tierney, chief administrative and chief financial officer for the Port. "Asia's economies are rebounding, and we fully anticipate this recovery to be reflected in this current year's figures."

The Commissioners voted in 1999 to levy $35.6 million in taxes, the same amount levied for the past eight years. In effect, this lowers the actual rate that King County taxpayers contribute to the Port. In 1998, the levy on a $200,000 house was $53; last year it was $48, and this year it has dropped to $44.

Aviation Division revenues increased 13 percent to $174.4 million from $154.3 million in 1998. Net income before depreciation rose 20 percent to $66 million from $54.8 million the previous year. After depreciation, the division reported net income of $27.1 million in 1999. In 1998, the division reported net income after depreciation of $20.6 million. The Aviation Division does not use money from the tax levy.

Marine Division revenues increased 10.8 percent to $98.3 million, up from $88.7 million in 1998. As was expected, due to large capital investments for the past several years, the Division did not achieve positive net revenues after depreciation.

"By providing world-class marine and aviation facilities and services, the Port is helping to build trade flows and expand economic opportunity in the region," Port Commission President Jack Block said. "Our investments in the community pay for themselves many times over by creating stable, family-wage jobs and increased business revenue."