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Finance: Seattle

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The 2014 Budget and Draft Plan of Finance approved by the Port of Seattle commission on November 19 forecasts total operating revenues for 2014 of $538.1 million, expenses of $323.4 million, and net operating income before depreciation of $214.7 million.

Seattle Port Commission Approves 2014 Budget

The Port of Seattle will continue investing in services and facilities, while maintaining conservative budgeting across the organization. The 2014 Budget and Draft Plan of Finance approved by the port commission on November 19 forecasts total operating revenues for 2014 of $538.1 million, expenses of $323.4 million, and net operating income before depreciation of $214.7 million.
 
The port’s operating income helps finance a total capital budget for 2014 of $295 million. The seaport will continue to invest in capital projects that support the port’s long-term competitiveness, including channel and berth deepening, dock upgrades and dredging. Sea-Tac will launch three projects to improve the customer experience, reduce congestion and add capacity to accommodate future growth: 
  • NorthSTAR, the north terminal expansion program;
  • a new international arrivals facility; and
  • a major update to the baggage system
Growth at Sea-Tac is forecast at 3 percent to more than 35 million passengers, above the long-term growth average of 2.2 percent. Both international and domestic enplanements will rise in 2014. Income is expected to grow from parking, rental cars and airport concessions. Revenues at the port’s commercial and recreation marinas will also rise due to higher occupancy.

Grain terminal shipments, container terminal lease rates and conference center revenues are responsible for most of the expected revenue declines in 2014. Earlier this year, the port revised the 2013 budget to reduce expenses by delaying hires, reducing travel and cutting contracted services. The port will continue to pursue cost-savings measures, including finding new efficiencies in existing processes and energy reductions.

The port’s 2014 tax levy remains unchanged at $73 million. Due to the increase in property values in King County, the levy rate will decrease from $0.2326 to $0.2153 per $1,000 of assessed value. Levy funds support habitat restoration and environmental cleanup projects primarily of the lower Duwamish River, debt service on seaport investments, freight mobility and regional transportation projects and Fisherman’s Terminal, home of the Northwest Pacific fishing fleet.
The Aviation Division operates Sea-Tac International Airport, the 15th largest in the United States as measured by total number of passengers in 2012.

The Seaport Division oversees the marketing, strategic development and management of four cargo and two cruise terminals, one grain terminal, a barge terminal and industrial properties connected with these businesses.

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.
 

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