Port's 2003 Budget Includes Tax Levy Increase

Investments Will Bolster Local Economy

The Port of Seattle Commission has adopted a 2003 budget that reflects reduced operating costs, increased spending on security and a commitment to capital investments that bolster the local and regional economy. The budget approved November 26 includes an increase in the Port's property tax levy from 19 cents to 26 cents per $1,000 assessed valuation.

"While tax increases are hard to accept, especially in light of the weak economy, the Port has a record of good stewardship of tax dollars," said Commission Chair Bob Edwards. "We've steadily reduced the levy rate for 10 years and we have used the funds primarily for marine capital projects and environmental improvements."

The Port's capital budget for 2003 is $733.7 million, a 27.6 percent increase over 2002. The bulk of that money - $607.4 million - will be invested at Seattle-Tacoma International Airport. Major projects include ongoing work on the Third Runway, reconstruction of Concourse A and the Central Terminal, and rebuilding the subway to the satellite terminals. No tax levy monies are used to fund capital improvements at the airport.

The Seaport's $113.3 million capital program for 2003 includes construction of a second cruise terminal and funding for transportation and freight-mobility projects, upgrades to Fishermen's Terminal, renewal of two cargo-handling facilities and dredging. The Seaport will spend about $10 million next year on security and law enforcement.

"These times demand that we make the steady investments in projects that create jobs and generate business and tax revenue, as well as maintain a good credit rating," said Port of Seattle Commission Vice Chair Patricia Davis. "These investments will help keep our Port globally competitive."

In order to maintain the Port's capital investment program and its financial standing, the Commission approved a 2003 tax levy rate of 26 cents per $1,000 assessed valuation.

At that level, the total Port tax on a $250,000 home in King County will be $65. The total amount raised by the levy will be $58 million.

The $313.8 million overall operating budget was reduced by 5.8 percent compared to 2002. Within the Seaport Division, 2003 operating expenses were cut by 18.3 percent.

"We've tightened our belts," said Port of Seattle Chief Executive Officer M. R. Dinsmore. "It's no secret that 2002 was a tough year for us, especially at the Seaport. We made some hard choices that included eliminating 220 positions."

While overall operating expenses are down, expenditures related to security will increase.

"Ensuring the safety and security of our passengers, cargo and community is critical," Dinsmore said. "We'll be implementing some of the programs funded by the $4.7 million federal security grant we received and working with the federal government, our customers and other private partners in programs designed to ensure the security of cargoes from their point of origin to their final point of distribution."

"I think this budget recognizes the constraints we face and the hard economic times we're in, but it also stays the course on the strategic capital investments that will keep us competitive in the future," said Davis.