From left, Port of Port Townsend Commissioners Steve Tucker, Chair Bill Putney and Pete Hanke deliberate the 2020 operating and capital budget before unanimously approving it Wednesday morning. (Brian McLean/Peninsula Daily News)

From left, Port of Port Townsend Commissioners Steve Tucker, Chair Bill Putney and Pete Hanke deliberate the 2020 operating and capital budget before unanimously approving it Wednesday morning. (Brian McLean/Peninsula Daily News)

Port of Port Townsend passes 2020 budget

Agency includes five-year capital projects plan

PORT TOWNSEND — Port of Port Townsend commissioners approved a combined operating and capital budget for 2020 with an eye toward gradually building net revenues to tackle a long list of projects in the coming years.

The three commissioners unanimously passed the budget Wednesday with nearly $6.4 million in operating revenues, a 3 percent increase over 2019, and $5.1 million in operating expenses, a 1.4 percent bump from last year.

The port’s net operating income of about $1.3 million is an increase of 11 percent over 2019.

“Going through this was pretty amazing,” Commissioner Pete Hanke said.

“I remember we were just commenting up here about budgets of the past, and we went through a phase where we didn’t even get a physical budget.

“That was very disturbing and frustrating.”

All three commissioners praised port staff for projecting a five-year capital needs assessment, both identifying estimated costs and potential funding sources.

The 33-page document includes a breakdown of each of the port’s facilities, from the Boat Haven moorage and yard operations, plus the managed properties, to the Point Hudson Marina and RV park, Quilcene’s Herb Beck Marina, Jefferson County International Airport and various boat ramp use.

Commissioner Steve Tucker, whose second four-year term will end Dec. 31, said this was the best-prepared budget of all eight he’s seen.

“Our operations are looking a lot better than they have in a long time,” he said. “To me, it’s showing that we’re on the right track and should give the general populace the confidence that, yeah, we can trust these guys with our tax money.”

Commission Chair Bill Putney talked about the progress the agency has made in regard to public transparency, an effort to compile a capital projects list that totals $14.6 million and to identify that the port’s revenues aren’t sufficient to fund those infrastructure needs.

“We’ve really made some progress, I think, of being open and available, not just by public records requests but proactively,” discussing the port’s operations, Putney said.

Commissioners held an open hearing on the budget following previous public workshops during which they went through the process line by line.

No public comment was offered Wednesday. About a dozen people attended.

Finance Director Abigail Berg said a 3 percent increase based on Consumer Price Index (CPI).was instituted across the board.

An additional $5,500 adjustment will be needed in union employees’ health insurance benefits, Berg said.

Interim Executive Director Jim Pivarnik told commissioners some additional changes they might make to rates or fees in the coming weeks will be small.

“It’s not going to affect the budget in any substantial way,” he said.

“We tried to be as fair as possible across the board.”

Hanke said his only area of concern is a five-month process next year when Pivarnik and a new executive director will be on board at the same time. Pivarnik’s contract runs through June 2020.

“That’s probably our biggest outlier, our biggest unknown,” Hanke said.

Pivarnik said the budget accounts for the overlap.

Among some of the expenses were cost-of-living adjustments, including health care and pension contributions, plus a new leasing and contracts administrator position. A director of operations and business development position was eliminated.

The port expects about $807,000 in net operating revenue from Boat Haven moorage operations and $139,000 in net operating revenue from the work and shipyard.

Point Hudson, including the RV park, is expected to bring about $440,000 in net revenue.

Those areas are expected to make up for net losses in Quilcene Marina and RV operations, boat ramp operations and the airport.

The airport runway reconstruction project highlights the capital budget, with more than $2.9 million in construction and $340,000 in construction administration costs.

The port has a grant from the Federal Aviation Administration to cover almost $3.3 million for the runway project, plus $7,800 from the state Department of Transportation for a taxiway connector.

Smaller capital projects estimated in 2020 include the Boat Haven breakwater repair for $300,000, and $250,000 for the Point Hudson jetty repair.

The total estimated capital project expenditures are $4.25 million for 2020.

The port’s cash flow projection lists numbers for the next five years, including a reserve fund at 25 percent of annual operating expenses — estimated to be $1.5 million — that should be fully funded by 2024.

________

Jefferson County Managing Editor Brian McLean can be reached at 360-385-2335, ext. 6, or at bmclean@peninsuladailynews.com.

More in News

Ben Hecht, a geologist with environmental consulting firm Landau Associates, takes a sample of raw drinking water taken at the city of Port Angeles’ ranney collector on Saturday at the Elwha River, downstream from Friday’s tanker crash that dumped petroleum products into Indian Creek west of Port Angeles. (Keith Thorpe/Peninsula Daily News)
‘Do not drink’ order given for Port Angeles water customers

Bottled water available Sunday at two locations

Foundation donates $1 million to hospital

Recipients include residency program, scholarships and cancer care center

A former teacher, Larry Jeffryes moved to Sequim with his wife in 2013. He was appointed to the Sequim School Board in September 2019, elected by voters in November of that year and was elected again in 2023. Before his resignation, Jeffryes’ term was set to go through November 2027. (Larry Jeffryes)
Sequim school board director resigns after six years in seat

District opens process to apply for position

Members of the musical group Soupbones, from left, Ed Schmid of Port Angeles, Ron Munro of Sequim, Carly List of Port Angeles and Hugh Starks of Sequim, perform at a Good Trouble community gathering and picnic on Thursday at Erickson Playfield in Port Angeles. Organizers of the event, one of numerous gatherings across the United States, decided to forego conventional politics while commemorating the life of civil rights activist John Lewis. (Keith Thorpe/Peninsula Daily News)
Good trouble rally

Members of the musical group Soupbones, from left, Ed Schmid of Port… Continue reading

State funds to benefit coastal habitat

Clallam, Jefferson awarded $1.6M

Artists Heather Sparks, left, and Zeo Boekbinder set up a stencil of a fern leaf in an effort to decorate an otherwise-drab concrete roadside divider along Race Street south of Lauridsen Boulevard on Wednesday in Port Angeles. The divider work was part of a larger project to beautify the Race Street corridor from Eighth Street to Hurricane Ridge Road, which included improved traffic lanes, pedestrian and bicycle lanes and decorative lighting. Long-term plans call for similar improvements to Race Street, extending to First and Front streets. (Keith Thorpe/Peninsula Daily News)
A touch of color

Artists Heather Sparks, left, and Zeo Boekbinder set up a stencil of… Continue reading

A tanker truck overturned into Indian Creek west of Port Angeles, according to the State Patrol and the state Department of Transportation. U.S. Highway 101 was closed Friday afternoon at milepost 238 near Herrick Road, and traffic was being diverted to state Highway 112. (Katherine Weatherwax via X)
Highway 101 reopens after tanker truck overturns into creek

Port Angeles asks utility customers to conserve water

Lisa Hansen of Port Angeles, center, takes a cellphone photo of her son, Cooper Hansen, 3, as Hansen’s mother, Tracy Hansen, right, looks on during a warm day at Hollywood Beach on the Port Angeles waterfront on Wednesday. The trio were enjoying a sunny summer afternoon next to the water. (Keith Thorpe/Peninsula Daily News)
Picture perfect

Lisa Hansen of Port Angeles, center, takes a cellphone photo of her… Continue reading

Claim against First Fed alleges $100M fraud

First Fed plans to ‘vigorously defend’ loans

Olympic Medical Center CEO says Medicaid cuts will hit hard

Darryl Wolfe tells board entire state will feel impact

Joseph Wilson, left, and Kevin Streett.
Jefferson PUD names new general manager

Wilson comes with 30 years of experience