PORT TOWNSEND — Port of Port Townsend commissioners got their first look this week at the $56.2 million five-year capital improvement plan and budget considerations for 2026.
The port has slated about $15.8 million in capital projects next year, with about half of the allocated funds ($7.44 million) dedicated to Boat Haven. The projects include the repair and reconstruction of the main breakwater ($3.1 million) and stormwater improvement ($1.4 million).
The port ($1.3 million) and city of Port Townsend ($600,000) are partnering in the second phase of the Sims Gateway and Boat Haven expansion project that will involve the removal by Jefferson County PUD of Italian poplars so it can underground necessary electrical infrastructure.
Matt Klontz, the port’s director of engineering, said although there had been public pressure to complete a spur to the Larry Scott Trail next year, the $250,000 project has been pushed to 2027 in consideration of a three-year, $300,000 project to upgrade the electrical grid in the boat yard.
“That is critical, because we don’t have enough power in the yard,” port commissioner Pete Henke said. “This is going to help us be safer, and it keeps us focused on what our business is.”
At Jefferson County International Airport, improvements include replacement of fuel tanks ($950,000) and project design ($60,000) and road construction ($700,000) at the industrial park.
Klontz said the $1.1 million in improvements at Herb Beck Marina in Quilcene involve construction of a bathroom, boat launch and parking lot.
On the schedule is the construction of pads at the Quilcene campground in 2028.
Upgrades to the Commander’s Beach House ($536,000), maintenance on the Sail Loft Building ($100,000) and improvements to other historic buildings at Point Hudson also are planned.
Commissioners will review a revised list of projects, including funding sources for each, at their next regular meeting at 5:30 p.m. Sept. 24.
A complete list of projects in the port’s five-year capital improvement plan can be found at tinyurl.com/yew2shjb.
Draft budget
Connie Anderson, the port’s director of finance, discussed with commissioners some of the elements that would impact revenue and expenses in the 2026 draft budget. Among them were across-the-board increases in health insurance and other employee benefits, utilities, materials and supplies and other operational expenses.
She offered for their consideration strategies for retiring some of the port’s debt and allocating cash reserves. Among the possibilities were paying off a limited tax general obligation bond early — in January 2026, rather than in March 2027 — and combining an operational reserve ($1.6 million) and an emergency fund reserve ($500,000) into a single fund.
The port is looking at decreases in the funds it collects from property owners in 2026 and the following years, said Jefferson County assessor Jeff Chapman, who provided an update on the port’s property and industrial development district tax levies.
Due to a statutory 1 percent annual cap on property tax revenue increases, rising property values and declines in new construction values in the county, the port’s levy rate — thus, its revenue collection — is going to continue to drop, Chapman said.
The port’s property tax collection also was being diluted by other taxing districts, like East Jefferson Fire Rescue, the Brinnon Fire Department and Port Townsend and Chimacum school districts, which have sought higher levies. A voter-approved levy lid left is the only viable option for the port to increase revenue, Chapman said.
The port has almost $4 million in unspent funds from the Industrial Development District (IDD) levy voters approved in 2019. The port could allocate the balance for spending in 2026 or choose to divide the amount between its 2026 and 2027 budgets.
Farm tour
Short’s Farm in Chimacum will be part of the 23rd annual Jefferson County Farm Tour this weekend. The 253-acre farm that the Port of Port Townsend purchased in 2023 also will host Chimacum Valley Grainery, One Straw Ranch and the Community Boat Project. It will be open from 10 a.m. to 4 p.m. Sunday at 1594 Center Road, Chimacum.
Vietnam memorial
The Wall That Heals, a three-quarter scale replica of the Vietnam Veterans Memorial in Washington, D.C., is on display around the clock at the airport through 2 p.m. Sunday.
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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.
