Port of Anacortes Commission approves 2022 budget

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November 5, 2021 | Archive

PRESS RELEASE

Nov. 5, 2021

FOR IMMEDIATE RELEASE

Contact:  Jill Brownfield, Director of Finance and Administration, 360-299-1807

Port of Anacortes Commission approves 2022 budget

Conservative budget focuses on maintaining operations and facilities, supporting ongoing demand

ANACORTES, WA – The Port of Anacortes Board of Commissioners approved the Port’s 2022 Budget after a public hearing on Nov. 4. The 2022 budget outlines a year of modest growth due to increasing demand for all the Port’s services and facilities, and continued investment in the properties and equipment that make the Port an economic engine for Anacortes.

“We had a successful year in 2021 in terms of weathering COVID and are currently exceeding expected budget goals,” said Commission President Jon Petrich. “The 2022 budget builds on this, and we continue to be conservative while knowing that we must also keep investing in critical infrastructure and environmental initiatives to be successful for the future of the Port and community.”

The Port anticipates $16.929 million in operating revenues and $16.715 million in operating expenses for 2022. The Port also anticipates investing more than $11 million in Port and grant funding for capital improvements for the airport, marina, marine terminal, industrial properties, and equipment.

2022 revenue

The Port projects a 12% revenue increase from the 2021 adopted budget, mainly due to continued demand for use of Cap Sante Marina and Anacortes Airport. The Port based its 2022 projections on a combination of factors, including current and historical market trends and projections, information from customers and tenants, and an uncertain economy as the world heads into the third year of the COVID-19 pandemic.

“In 2021 we budgeted conservatively because we just didn’t know how the pandemic was going to affect the Port and community,” said Jill Brownfield, Port Director of Finance and Administration. “What we’ve actually seen in 2021 is consistently strong demand at the marina and airport, and significant increases in the Consumer Price Index, used for annual lease adjustments, which is generating more revenue than expected. Even so, we want to continue to be cautious as we plan for next year to help protect the Port in 2022 and beyond.”

The revenue projection also includes a Commission-approved 1% tax levy increase, exclusive of new construction, to an estimated 20 cents per $1,000 assessed value. At this levy rate, a property in the Port district valued at $500,000 would pay about $100 in annual taxes to the Port. The Port Commission has directed that these funds be used only for property acquisition, industrial development (including environmental costs), debt service for general obligation bonds, and public access improvements. With the inclusion of new construction, the total tax levy amount in the 2022 budget is $1.709 million, bringing the total levy increase amount to 3%.

2022 expenses

Expenses are projected to increase 11% from the 2021 budget. 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 in 2022. These include supply chain issues, rising inflation, increasing insurance premiums driven by marketplace factors, and increased demand for infrastructure.

The Port also continues to service debt from two general obligation bonds and will provide timely payment of $1.576 million in 2022. These bonds total $9.18 million in outstanding debt. They funded improvements at Cap Sante Marina, including modernization of A, C and D docks, relocation and replacement of the fuel dock, and installation of the trailer boat launch.

Capital improvements

The Port has continually invested in its extensive infrastructure to maintain facilities, improve operations, and support future jobs and economic benefit for Anacortes. In 2022 the Port plans to invest $9.486 million in Port funds and $1.530 million in grant funds for several projects to improve the airport, marina, docks, industrial facilities, and equipment. Capital projects in 2022 include:

  • Airport stormwater facilities
  • Marina dock repairs and upgrades, including at O, P and Q docks
  • Addition of an electric vehicle charging station at the marina
  • Fiber optic installation at the marina’s C, D, E and F docks
  • Complete renovation of the RV park, including utilities, landscaping, and new, dedicated restrooms
  • Paving work and protective measures for the piers at Curtis Wharf
  • Automated gates at Pier 2 and Wyman’s Ramp
  • Final design and site development work for the Rockwell property
  • Planning for NW Basin Building 5 to determine best use of this property
  • Replacing equipment used to maintain Port facilities and provide high-quality customer service

Environmental program

The Port of Anacortes has a robust 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 Shipyard and Quiet Cove sites, and continued remedial investigation and analysis on the former Pier 2 Log Haul Out Site.

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The Port of Anacortes was formed in 1926 to promote economic development for Anacortes and the surrounding area. The Port district is led by a board of five elected commissioners: Bonnie Bowers, Ken Goodwin, Jon Petrich, Kathy Pittis and Joe Verdoes. Public meetings are held the first and third Thursdays of the month at 7:00 p.m. in the Commission Meeting Room of the Port Transit Shed, 100 Commercial Avenue, Anacortes, WA. For more information, visit www.portofanacortes.com