PORT TOWNSEND — Port of Port Townsend commissioners will not see a draft of the 2025 budget until next month, but they got a picture of trends in expenses and income that will inform their decision-making.
Connie Anderson, the port’s director of finance and administration, presented a preview Wednesday of the proposed draft budget that will appear on the Sept. 25 workshop agenda, which will include the capital improvement plan, proposed rates and fees for next year and Consumer Price Index (CPI) adjustments.
Among the anticipated impacts are rising insurance rates for the marinas and Jefferson County International Airport, increased employee and benefit expenses and next summer’s stormwater construction project that will temporarily disrupt some areas of the boatyard.
Anderson recommended the port not try to overcorrect in balancing the budget, but remain careful and “stay the course.”
The year-to-date finance report Anderson presented showed the port’s revenues holding steady at 1.3 percent higher than last year but below what it had anticipated and falling behind expenses that were 15.5 percent higher. Some of it is related to the purchase of materials and supplies to address delayed maintenance projects.
Activity at the port’s marine facilities has been relatively steady in the first half of 2024, although it appears to be declining, Harbormaster Kristian Ferrero told commissioners.
The number of haulouts at the boatyard over the first seven months of the year is on track to meet expectations, he said, but vessels are not staying as long.
“We’re expecting August to be a low month. It’s traditionally been low, and we’re hoping if our trends continue the way they have in the past, they’ll spike in September,” Ferrero said. “But overall I think it will be less than at least the previous two years.”
Nightly stays at Boat Haven are down significantly from last year, and RV camping and moorage occupancies at Hudson Point Marina are lagging as well.
The port’s 2024 budget anticipated growth, but the flattening of revenue has resulted in net operating income that is half of what it expected.
“We’ve seen some million-dollar years, and now we’re seeing something significantly different,” Commissioner Pete Hanke said. “As we look at next year’s budget, do we pick a bottom-line number and aim for that?”
Anderson said yes.
“If you have something in mind where you would like to see the net operating income end next year, knowing that we’re in this time in investing in the port, that’s really helpful,” Anderson said.
Also at the meeting, commissioners Hanke and Pam Petranek voted to approve the purchase of a new Skid Steer for no more than $80,000 that will be used in the boatyard, airport and Short’s Farm. (Commissioner Carol Hasse had an excused absence from the meeting.)
In other port news, the Elmore, an 1890 tugboat with a long history in the Pacific Northwest and Alaska, did not receive a bid at public auction Aug. 5. If no one steps forward to buy the vessel within 10 days of the auction, ownership of the Elmore will be forfeited to the port.
Ferrero said the port has no plans yet for what it might do with the vessel.
A young red-footed booby that showed up in Port Townsend in late July is still hanging around, preening and fishing. The rare tropical visitor continues to draw birders laden with long lenses and binoculars.
The Point Hudson moorage office will be closed Tuesday as it moves to its new home in the Cupola House, 380 Jefferson St.
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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.
