Record Growth Drives Capital Investments in Port's 2005 Budget - Levy Rate Remains Flat

Investments to support record growth at Seattle's airport and seaport as well as critical regional infrastructure projects such as the Alaskan Way Viaduct are part of the nearly-$1 billion budget approved today by the Port of Seattle Commission.

The budget includes $954 million worth of planned operating and capital expenditures. The capital budget, at $739 million, includes ongoing work on the Third Runway at Seattle-Tacoma International Airport and completion of the airport's Central Terminal Expansion project. Sea-Tac is on course to handle a record 28.7 million passengers in 2004 and more growth is expected next year.

Seaport cargo volumes reached an all-time high this week, beating the old record of 1.58 million containers with five weeks left in the year. Cargo growth for 2005 is projected at between four and eight percent. The Port's cruise ship business also set records in 2004 with 562,000 passengers and 150 vessel calls. A total of 700,000 passengers and 170 cruise ship stops are expected in 2005.

"The business growth we see in our two major operating divisions is the direct result of making the right investments at the right time," said Port of Seattle Commission President Paige Miller. "In order to maintain the momentum we have to continue to invest in our own facilities and in the region's transportation network. With this budget the Port becomes the first local jurisdiction to prepare to participate financially in fixing the Alaskan Way Viaduct."

No dollar figure was set for the Port's contribution to replacing the viaduct, but the Commission took steps to reserve future capital capacity that could be used to support the viaduct, other transportation projects and capital costs associated with seaport security.

Commissioners voted Nov. 17 to eliminate several projects from the 2005 capital budget, including: participation in the City of Bellevue's expansion of Meydenbauer Center, a fourth cruise ship berth and a role for the Port in the Washington State Ferries' redevelopment of Colman Dock. The projects were eliminated because they did not meet the Port's criteria for return on investment and to reserve capital capacity for the viaduct.

"These are difficult decisions to make," Miller said, "but we are staying the course on capital projects that are expected to provide the greatest economic benefit for the region. That's the Port's job."

"As economies around the world recover and grow, we need to be ready to meet the challenge and opportunity that brings us," said Port of Seattle CEO Mic Dinsmore. "Investing in our trade and transportation infrastructure is essential to our success as a Port and as a region, competing in a global economy."

The Port's capital projects are supported in part by a tax levied on all properties in King County. The commission set the levy at $62.7 million with the aim of keeping the levy rate flat in 2005 at 25.39 cents per $1,000 assessed valuation. At that rate the owner of a home assessed at the county median value of $293,000 will pay $74 in Port taxes in 2005. In 2004 the owner of a home assessed at the median value of $280,000 paid $71.13 in Port taxes.

By Commission policy tax levy money is used primarily to pay for and service debt associated with capital improvements at the seaport. Some levy money also pays for capital projects with broader community benefits, such as environmental restoration and regional transportation. No tax levy funds are used for operational expenses at the seaport or airport.