Port of Seattle budget sees record revenues, lower tax rate

Record revenues and a reduced tax rate are highlights of a 2006 budget approved by the Port of Seattle Commission today.

Total operating revenues are expected to reach $421 million, an all-time record and an increase of 4.5 percent over 2005.

"The increase in revenues reflects new and expanded facilities we've opened at the airport and seaport recently as well as projected increases in passenger and cargo volumes," said Port of Seattle Commission President Bob Edwards. "We also are expecting higher income from our marine terminals and other revenue sources such as concessions at the airport."

New revenue generating facilities that opened in 2005 include the Central Terminal at the airport and a refurbished Terminal 25 at the seaport.

"While those facilities opened in 2005 we'll see an even greater financial impact in 2006 because they'll generate a full year's worth of revenues," Edwards said.

The Port's tax levy rate will drop in 2006 to 23.4 cents per $1,000 assessed valuation and raise a total of $62.7 million - the same as in 2005. The 2005 levy rate was 25.3 cents per $1,000 assessed valuation. New construction and an increase in the value of properties throughout King County allowed the Port to drop the rate while maintaining the same level of tax revenues.

"The commission continues to make judicious use of the tax levy," Edwards said. "The 2006 levy rate is four-and-a-half cents lower than it was in ten years ago and every tax dollar we collect generates three more dollars in taxes to support schools and other public services. Port investments and activities also bring 194,000 jobs and more than $6.7 billion in payroll to our region."

The Port's tax levy is used primarily for capital investments at the seaport and for paying off bonds issued to finance capital expenditures. A small amount of the levy goes toward sound insulation projects in the Highline School District. No levy money is used for general operating expenses.

The Port's 2006 capital budget envisions a total $552 million in committed projects. The single largest item is work on the Third Runway at Sea-Tac Airport with projected '06 expenditures of $141 million. Other major airport projects scheduled for 2006 include $65.2 million worth of terminal improvements and $61.3 million in airfield security upgrades. The total capital budget for the airport is $418.6 million.

Seaport capital projects next year will include $56.1 million in upgrades at Terminals 18, 25, 91 and 115. Another $27 million will be invested in dock replacement projects at Fishermen's Terminal and Shilshole Bay Marina. The Seaport's total 2006 capital budget is $118.5 million.

Another $14.9 million in capital expenditures is planned by the Economic Development and Professional and Technical Services divisions.

The Port's 10-year capital improvement plan (CIP), a look at long-term anticipated capital expenses presented to the Commission with the budget each year, for the first time includes the potential for the Port to participate financially in the replacement of the Alaskan Way Viaduct.

"We put in a figure of $200 million, assuming a tunnel option is selected, which could be appropriated over a 10-year period beginning in 2008 or 2009." Edwards said. "It's not a guarantee of funding for the viaduct but it is a demonstration of our interest in maintaining access to the waterfront and freight capacity on the Highway 99 corridor." The commission still would have to vote to appropriate money for viaduct replacement at a later date, he said.

"We're coming off of one of the best years in recent history at the Port," Edwards said. "We've seen 24 percent growth in cargo volumes at the seaport, solid increases in passenger numbers at Sea-Tac, and key construction projects are moving ahead. The Port of Seattle will continue to contribute to this region's economic vitality."