PORT TOWNSEND — The Port of Port Townsend reported stronger-than-expected finances through the first 10 months of the year, supported by solid revenues and lower operating costs.
Connie Anderson, the port’s director of finance and administration, told commissioners on Wednesday that the port recorded about $7.7 million in operating revenue, roughly 86 percent of its annual budget, while expenses totaled about $6.5 million, or 80 percent of budget, through the end of October.
The gap produced a net operating income more than $400,000 higher than projected.
Anderson said the surplus was largely the result of staffing changes and vacancies earlier in the year that reduced salary, benefit and payroll tax costs.
The port also completed the full payoff of its remaining long-term debt on Dec. 1, which will be reflected in year-end financial statements.
With the debt retired, the port’s only borrowing is a revolving line of credit used to manage cash flow during capital construction projects while awaiting reimbursement, Anderson said.
In his report to commissioners, harbormaster Kristian Ferrero said the 75-ton yard posted a record year, with 770 haul-outs through November and an anticipated 800 by the end of December, surpassing all previous annual totals.
“That’s a record high for us,” Ferrero said.
Average occupancy at the 75-ton yard was about 85 percent.
The 300-ton yard, however, experienced a record low number of haul-outs, with 113 vessels through November and about 130 expected by year’s end — well below historic norms.
Ferrero attributed the decline to construction in the yard and longer vessel storage periods that reduced turnover.
The 300-ton yard dipped to about 65 percent occupancy during the summer before it increased to about 85 percent in the fall. Ferrero said ideal occupancy for the yards is about 90 percent, which allows for flexibility in moving vessels in and out.
Long-term moorage at Boat Haven was at nearly 97 percent occupancy. Transient and commercial moorage nights exceeded 2024 totals, Ferrero said, but they remained below peak levels immediately after the pandemic.
Commissioners addressed a request related to the port’s newly approved 2026 rate card for the 300-ton yard. A tenant with a 34-foot vessel told commissioners the new 80-foot minimum-size charge would result in a lease increase of more than 70 percent, or nearly $1,000 per month, while his boat remained in the yard for repairs.
He called the increase “pretty significant” and asked the board to consider relief.
The new rate card is scheduled to take effect Jan. 1, but commissioners voted to delay implementation of the minimum-size requirement to July 1 for the two tenants who are affected.
Commissioners also ratified the purchase of tidelands for $14,500 to the north of Point Hudson.
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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.
