The Port of Port Townsend commissioners approved their operating and capital budgets for 2025 on Nov. 13, along with a rate increase and two tax levies to fund ongoing operations.

Connie Anderson, the port’s finance director, noted that there were no significant changes to the draft presented to the commissioners on Oct. 7.

“The theme for the 2025 budget is to maintain a conservative approach with a long planning horizon,” wrote the Port’s executive director, Eron Berg, in the budget’s cover letter. “As the Port enters its 101st year, we intend to manage and plan for a Port that intends to celebrate its 200th birthday, too.” 

The 2025 budget forecasts $8.8 million in revenues, $8.2 million in expenses and a net operating income of $644,058, meeting the commission’s recommended $500,000 net baseline.

The budget reflects an 8% increase in revenues and a 9% increase in expenditures from the Ports 2024 budget. 

A 3.8% port rate and fee increase after Jan. 1, new revenue streams at the Short Farm and Point Hudson and new passenger fees on cruise ships drove the revenue jump.

Regular and recurring operating expenses, along with capital costs, are expected to rise due to inflation and market uncertainty. The increases, along with a 3.8% cost-of-living adjustment for all port staff, contributed to the overall rise in expenditures. Liability and property insurance costs are also increasing.

The 2025 budget includes $1.2 million in the general property tax levy, an increase of 2% from 2024. The Industrial Development District levy will remain at $2.6 million for the fourth consecutive year, maintaining the port’s reserve for capital projects.

The $16.6 million capital project budget is spread across 45 planned projects, with the largest funding sums allocated toward improvements at Boat Haven ($9.1 million), Jefferson County International Airport ($2.1 million), Point Hudson ($1.8 million) and the Quilcene Marina ($575,000).

Most of the capital project funding has been secured and consists of grants, capital reserves, the IDD levy and mitigation credits. Approximately $716,000 remains to be secured.

“The unfunded $716,000 will be addressed with final bid amounts, project timing as well as additional potential funding opportunities,” Berg wrote. “Capital projects are dynamic and in the context of the 2025 capital budget, this amount will be addressed by the reasons already listed as well as potential new allocations of the IDD and/or cash reserves.”