Financial Information

Approved Operating Budgets and Capital Improvement Plans

The annual operating and capital budgets are developed through a transparent budgeting process, which includes public review and Commission approval.

Each fall, Port staff reviews projected revenues and expenses against the Port’s goals and objectives for the coming year and develops a preliminary budget. In early October, staff presents the preliminary budget to the Board of Commissioners at a budget study session, held during a Special Commission meeting open to the public. Following that study session, the draft budget is made available on the Port’s website or in hard copy from the main Port office. A public hearing is held on the preliminary budget at its first regularly scheduled Commission meeting in November, followed by a Commission decision on the Port’s final budget.

The final budget has several major purposes. It converts the Port’s policies and plans, including its Strategic and Comprehensive plans, into services and future capital improvement projects. It serves as a vehicle to communicate these plans to the public and becomes the work plan to be accomplished in the next fiscal year.

The 2022 budget reflects total operating revenues of $16.929 million, an increase of approximately 12% from the 2021 adopted budget. While export volumes of petroleum coke and sulfur remain slightly depressed, demand for outdoor recreation has increased significantly, positively impacting Marina revenues and Airport fuel sales. The 2022 revenue projections assume the trends of 2021 will continue, however, the full impact of the COVID-19 pandemic on the Port and the regional economy is uncertain. Consequently, the Port has not been aggressive with Marine Terminal estimated volumes nor with additional revenue streams.

In 2022, the Port anticipates hiring additional staff to support customer service and Information Technology needs and is also conscious of economic factors outside its control that could increase the cost of operations. These include supply chain issues, rising inflation, increasing insurance premiums driven by marketplace factors, and increased demand for infrastructure. As a result, the 2022 budget projects operating expenses of $16.715 million, an 11% increase over the 2021 adopted budget.

Capital projects are anticipated to total over $11 million in 2022. The Port has continually invested in its extensive infrastructure to maintain facilities, improve operations and support future jobs and economic benefit for Anacortes. Significant initiatives include Marina dock repairs and upgrades, including O, P & Q docks, a fully upgraded RV Park complete with dedicated utilities, green spaces, privacy hedges and a restroom facility, automated gates at Pier 2 and Wyman’s Ramp, and final design and site development work for the Rockwell property (newly acquired commercial property adjacent the Airport).

Rounding out the 2022 budget is the Port’s ongoing program to identify and address environmental contamination from prior operations on Port properties. In 2022, the Port anticipates investing $2.63 million in continued cleanup and restoration work at the Dakota Creek Industries and Quiet Cove sites, and continued remedial investigation and analysis on the former Pier 2 Log Haul Out site

The Port issues an annual financial report following the end of each calendar year. This report is audited by the State Auditor’s Office. The report includes a summary of the year, known as Management’s Discussion and Analysis, along with the financial statements and notes to those statements. The Port of Anacortes has been recognized by the Washington State Auditor for having an exemplary audit track record, for staff’s excellent communication and transparency in regards to financial information, and for their proactive approach to internal audit functions to best protect Port assets and resources.

In addition to the annual financial statement audit, the State Auditor’s Office, in accordance with RCW 43.09.260, performs an accountability audit involving the review of the Port’s uses of public resources, compliance with state laws and regulations and its own policies and procedures, and internal controls over such matters.

Audit reports for prior years can be found at the Washington State Auditor’s Office website by doing a search. http://portal.sao.wa.gov/ReportSearch

The Port is permitted by law to levy up to $0.45 per $1,000 of assessed value of taxable property within the district for general purposes. Today, the Port receives about 22 cents per $1,000 of assessed value.

The average Port district taxpayer pays about $94 per year to the Port for property valued at $425,000.

How are the taxes used?

An account, which is separate from the Port’s general operating account, handles tax proceeds.  The Commission has directed that the funds collected by the tax levy will be used for property acquisition, industrial development including environmental costs, debt service, and public access improvements.

Improving Port facilities to create more jobs and encourage business growth for the community is one of the Port’s top priorities. The existing tax levy helps to ensure the Port’s ability to remain nimble to new business opportunities, to acquire new properties, and for borrowing money towards capital improvements. Commission oversight and guidance relative to tax proceeds ensures decisions are driven by benefits to the community and environmental stewardship, and not just to bottom line results.

How are the taxes not used?

Tax proceeds do not pay for the operating costs, including salaries and benefits, for the Port.

Do I live in the Port district?

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