While some governments are talking about raising taxes and tapping reserves, the Port of Seattle has done the opposite. In our 2010 budget, we cut taxes and set up a new transportation/infrastructure reserve fund to start covering known, future liabilities.
During 2009, the port commission emphasized the need for the port to maintain net operating income despite falling revenues.
To accomplish that, in 2009, the commission and port CEO Tay Yoshitani:
• implemented zero based budgeting
• eliminated programs that didn’t meet current needs
• required two week unpaid furloughs
• cut payroll 6% (110 positions)
• revised the medical program to require employees to contribute more
• cut an additional 5.6% from the budget throughout 2009.
These were not easy decisions, but we are not there to make easy decisions; we are there to solve problems and set policies that will help our port be a competitive, environmentally sustainable, job generating engine for our region.
On November 23rd, the port commission did that by passing another fiscally responsible budget. This 2010 budget adds to environmental reserves, creates a new $40 million+ infrastructure and transportation reserve AND CUTS PROPERTY TAXES.
The 2010 reduced port property tax will be spent as follows:
• A little over $40 million on bond debt service for previous dredging, terminal expansion and Fisherman’s Terminal seawall renewal projects
• Over $15 million on road projects including expansion of Spokane Street viaduct, overpasses near Safeco Field, East Marginal Way improvements and freight projects in the Kent Valley
• About $13 million into transportation & infrastructure reserves
• Over $8 million into environmental projects
• Over $9 million for new school construction in the Highline School District (near SeaTac)
• Over $19 million on projects including seawall replacement, dock repair and improvements, storm water upgrades, and environmental initiatives.
Just as important, from 2010 forward, the seaport will cover its capital costs from its own net operating income and will not rely on property taxes.
Bill Bryant is president of the King Co./Seattle Port Commission. He is also founder and chairman of BCI, an investor in Deneki Outdoors, and lives in Seattle with his wife Barbara.