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2015 Port Budget Funds Critical Investments, Holds Tax Levy Stable

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November 25, 2014

Port of Seattle Commissioners today approved the Port’s 2015 budget, which projects significant growth at Seattle-Tacoma International Airport, stable revenue in the seaport division, and continuing recovery in the real estate business.

“The port is a powerful economic engine that helps create more than 200,000 jobs across the region,” said Commission Co-President Courtney Gregoire. “This budget reflects our priorities of making critical investments to sustain and grow these jobs in the long-term while ensuring King County taxpayers get the best value for their money.”

Anticipating continued business growth in most of the port’s divisions and strong property values, the approved budget keeps the tax levy stable at $73 million while reducing the tax rate from $0.2151 to $0.1896 per $1,000 of assessed value. Tax levy funds are used mainly for General Obligation (G.O.) bonds debt service, local transportation, and Seaport and Real Estate environmental clean-up efforts.

The Port’s 2015 operating revenues are budgeted at $551.8million, a $14.4 million or 2.7% increase from the 2014 budget. Operating expenses are budgeted at $332.9 million, a $9.5 million or 2.9% increase compared to 2014 budget. Net Operating Income before Depreciation is budgeted to be $218.9 million, a $4.8million or 2.3% increase.

The Port’s capital budget is $373.8 million for 2015 and $2.2 billion for the next five years. Major capital projects for 2015 include:

For the airport:

  • North Satellite improvements at Sea-Tac.
  • Begin work on a new International Arrivals Facility
  • Baggage Recapitalization/Optimization
  • Center runway reconstruction

For the seaport:

  • Terminal 5 modernization, making it ‘big ship ready’ to handle 13 – 14, 000 TEU container ships
  • Terminal 46 development to increase ‘big ship’ handling capacity
  • Dedicated funding to support Seaport Alliance formation

For real estate:

  • Fishermen’s Terminal net shed roof replacement.

Here are the budget numbers by division:

Aviation Division

The Aviation Division operates Seattle-Tacoma International Airport, the 14th busiest in the United States as measured by total number of passengers in 2013.

(Dollars in millions) 2015
Operating revenues $427.2
Operating expenses $248.1
Net operating income before depreciation $179.1

 

Seaport Division

The Seaport Division oversees the marketing, strategic development and management of three cargo and two cruise terminals, one grain terminal, a barge terminal and industrial properties connected with these businesses, and is the 10th largest U.S. port in terms of cargo containers in 2013.

(Dollars in millions) 2015
Operating revenues $91.6
Operating expenses $43.6
Net operating income before depreciation $48.0

 

Real Estate Division

The Real Estate Division oversees the development and management of various port assets and Fisherman’s Terminal, marina facilities at Harbor Island, Fisherman’s Terminal, Pier 66 and Shilshole, and 24 public parks and public access points.

(Dollars in millions) 2015
Operating revenues $32.5
Operating expenses $39.4
Net operating income before depreciation ($6.9)
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