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 regularly scheduled Commission meeting open to the public. Following that study session, the draft budget is made available on the Port’s website as well as 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 2021 budget reflects total operating revenues of $15.150 million, a decrease of approximately 15% from the 2020 adopted budget. Typically, the operating budget is developed based on historical trends in revenue and expenses, information from customers and tenants, market projections, and key economic and regulatory assumptions. The 2021 budget was developed in much the same way, however, the outbreak of the 2019 novel coronavirus (“COVID-19”) is a significant event that has had and will have ongoing, material effects on the finances, operations, and economy of the Port. While the full impact of the COVID-19 pandemic on the Port and the regional economy is uncertain, the Port anticipates a continued reduction in demand for oil, thus decreasing the price of fuel and export volumes of petroleum coke and sulfur. Restrictions on travel and social gatherings are also anticipated to impact event venue rentals and Port-sponsored events. Due to these same factors, the 2021 budget projects operating expenses of $15.104 million, a 13% decrease from the 2020 budget.

The 2021 capital budget of just over $14.7 million continues to  focus on long-term deferred maintenance across all operating areas, along with planning and design for new redevelopment opportunities within the Marina and newly acquired properties.

While the Port’s current financial outlook remains positive, the Port cannot predict the duration and extent of the COVID-19 public health emergency, or quantify the magnitude of the impact on the regional and local economy.  This economic uncertainty as a result of the current global pandemic, shifts in markets (especially those affecting our local refineries), considerable capital requirements for the Port’s aging infrastructure and development plans, and continued regulatory requirements and environmental risks remain challenging.

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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