PORT ANGELES — Port of Port Angeles commissioners reviewed the preliminary 2026 budget, a September financial report and approved an addition to its memorandum of understanding with the North Olympic Peninsula Recompete Coalition.
Jennifer Baker, the port’s director of finance and administration, walked commissioners through updates to the budget on Tuesday, outlining revisions to the agency’s organizational chart, capital projects, long-term financial planning, cash flow summary, property maps, projected revenue and expenses and the capital improvement plan.
“There may or may not be some amendment to this as we continue the discussions through the budget process,” she said. “But if there are changes, we’ll let you know.”
An adjusted cash-reserve forecast showed the port’s balance dipping below its $10 million reserve target in 2028 when it could decrease to $9.9 million.
“There’s been a lot of internal conversations in regard to once we saw how this was going to pan out over the next five years, the things that we could do in order to make sure we don’t go below this $10 million,” Director of Engineering Chris Hartman said. “We’re looking at grants going forward, we’re looking at low-interest loans, and we’re looking at bonds.”
Hartman said the port would need to decide “whether to take on debt earlier rather than later,” but emphasized that any borrowing would be considered only after commissioners review potential risks and repayment options.
The port is budgeted to have a cash reserve of $16 million next year.
Among the projects planned for 2026 but likely not completed is construction of a hangar at William R. Fairchild International Airport.
“That’s based on where we are with design and FAA coordination,” Hartman said. “So, you’re only seeing half that project cost this year and half next year.”
There will be a 1 percent increase in the 2026 port levy rate. The estimated rate will be $0.1069 per $1,000 of assessed property value. The current rate is $0.10892 per $1,000 assessed value.
The port’s levy rate remains well below the statutory maximum of $0.45 per $1,000 of assessed value.
“We’re a quarter of what we could be actually assessing, but we’re not anticipating we’re going to increase that,” said Paul Jarkiewicz, the port’s executive director.
A homeowner with property valued at $415,000 and who paid $45.20 in port taxes in 2025 will pay $44.35 in 2026. The total projected property tax revenue of $1.88 million represents a $72,842 increase over 2025.
In the September financial report, Baker said most business lines remain stable despite increased maintenance and payroll costs. Administrative spending also rose, in part because of spending that included new email cybersecurity software.
The last public hearing for the 2026 budget will take place at a special meeting on Nov. 17, after which the commissioners will vote to adopt it and the tax levy rate. The regular Nov. 16 meeting has been canceled because it falls on Veterans Day.
Commissioners also discussed an update to the port’s MOU with Recompete, which outlines the port’s scope of work for the job creation initiative which is funded through the U.S. Economic Development Administration.
They had requested at their Oct. 14 meeting that staff prepare a scope of work to be added as an attachment that detailed its commitments, including purchasing three barges and working with cargo stakeholders, like the Makah Tribe.
“We want to make sure this document doesn’t hold us to other organizations’ standards,” said Katharine Frazier, the port’s grants and government affairs manager. “We want to be sure that, at the end of the project, we can say we accomplished what we set out to do.”
Commissioners Connie Beauvais and Steve Burke approved the measure; commissioner Colleen McAleer abstained from voting due to her signature authority on behalf of the Clallam Economic Development Council, for which she is executive director.
In other business, commissioners adopted a resolution to update the county’s hazard mitigation plan. The resolution ensures the port remains eligible for FEMA disaster funding and future grants.
Commissioners also approved submitting a $2 million request to the governor’s capital budget for funding for design and permitting for a 20,000-square-foot multi-user marine trades building at the Port Angeles Boatyard. Three bays would be available for long-term leases and the fourth bay would be dedicated for activities like spray painting, vessel blasting and prep.
In response to a public comment regarding transparency, the port confirmed it would making previous years’ budgets and financials readily accessible on its website.
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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.
