Port Proposes Record Million Capital Budget for 2001

Commissioners Set to Review Plan That Includes Significant Cut in Tax Rate

The Port of Seattle Commission has begun its review of the preliminary 2001 budget, a package that sets the stage for some of the most ambitious projects the Port has initiated in decades.

The capital budget of $504 million represents the committed first year of the Port's 2001-2010 capital improvement plan of $3.3 billion. The budget includes major expansion work at Seattle-Tacoma International Airport, plus the Port's continued commitment to environmental and noise mitigation. It also targets new business development opportunities, like the Port's new eBusiness strategy.

The Port anticipates a record $324 million in total operating revenues next year, a 7.6 percent increase over the 2000 budget. Net operating income after depreciation is budgeted at $44.4 million, up 8.2 percent over 2000.

"We are entering the most intense period of growth and redevelopment the Port has ever seen," said Port Executive Director Mic Dinsmore. "This preliminary budget, while providing the Port with the necessary funding to carry out many important initiatives, remains fiscally responsible."

Capital improvement projects slated for 2001 include more than $435 million in projects at Sea-Tac. Scheduled projects include continued construction of the third runway, construction of a new concourse with more gates, and replacing the airport's subway train system. Major projects slated for the Seaport in 2001 include the continued redevelopment and expansion of Terminal 18 to speed cargo handling; a complete electrical system upgrade at Fishermen's Terminal in Ballard; and expanding the Bell Street Pier Cruise Terminal at Pier 66.

The proposed budget includes an 11 percent drop in the Port's tax rate for King County property owners. The Port proposes to collect $35.6 million in property taxes next year, the same amount collected in each of the previous eight years. Holding the levy dollar amount flat drops the levy rate from $.22 per $1,000 in assessed value in 2000 to $.19 in assessed value in 2001. For example, the proposed levy would cost the owner of a $200,000 home $38.36 next year. This year, the levy on a $200,000 home is $43.21. This analysis doesn't consider potential impacts Initiative 722 might have.

"The Port Commission's decision to seek a lower levy rate has resulted in a reduction of more than 50 percent over the past decade, and a savings of $185 million to King County taxpayers," said Commission President Jack Block.

"I'm proud of the fact that we've been able to keep money in the taxpayer's pockets, while at the same time building, maintaining, and improving a regional commerce infrastructure that is responsible for hundreds of thousands of jobs and billions in business revenues and income," he said.

Nearly 70 percent of the 2001 levy is proposed to go toward the current year's debt service on general obligation bonds. Proposed uses for the remaining levy funds include funding for the Freight Action Strategy for the Seattle-Tacoma (FAST) Corridor projects which hold promise in reducing some of the region's worst traffic tie-ups. FAST Corridor projects set for Port funding contributions in 2001 include the Royal Brougham-Alaskan Way (SR 519) project, a grade separation project in Auburn, and improvements to the East Marginal Way Overpass.

The Port's strong financial condition was reflected earlier this year when financial analysts at Moody's gave a Port bond sale the highest rating a U.S. transportation infrastructure revenue bond has ever received.

Another important project recently launched by the Port is a five-year, $20 million eBusiness strategy. When fully implemented, the plan will position Seattle as the world's foremost Port in providing eBusiness solutions to the diverse global businesses involved in international trade.

The strategy is expected to be carried out in three phases, including an initial assessment of the Port's current technology infrastructure and making necessary changes to that platform, followed by implementation of eBusiness applications built upon the infrastructure developed through the first phase.

Commissioners are expected to approve a final 2001 Port budget at their Nov. 28 regular meeting.