Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
7c
BRIEFING ITEM
Date of Meeting
November 13, 2018
DATE: October 5, 2018
TO: Stephen Metruck, Executive Director
FROM: Elizabeth Morrison, Director Corporate Finance
SUBJECT: Briefing on the Tax Levy and Draft Plan of Finance for 2019-2023
EXECUTIVE SUMMARY
This briefing is intended to inform the Commission’s decision on the amount of the tax levy for
the 2019 budget year and to inform the Commission on the Port’s funding of its 2019-2023
Capital Improvement Plan (CIP) - the Draft Plan of Finance.
BACKGROUND
Ports in Washington State have authority to levy taxes on property within the port district,
within certain statutory limits; the Port may use this strategic resource for any allowable port
purpose (other than the payment of revenue bond debt service). As part of the Port’s budget
process, the Commission establishes the amount of taxes to be levied within the Port district
for the budget year. Staff will provide information on the uses of the tax levy and will seek
Commission guidance on the establishment of the 2019 tax levy amount. The Preliminary
Budget referenced a 2019 tax levy of $72 million, the same as the 2018 levy. Staff recommends
that the 2019 levy be set at $74.16 million, a three percent increase.
As part of the annual budget process, staff provides a Draft Plan of Finance that is updated each
year for the subsequent five-year CIP and provides information on the funding sources available
to support the CIP. The Draft Plan of Finance is intended to illustrate the Port’s capacity to fund
projects based on the projected available resources and results in a recommendation to adjust
funding from the tax levy. Staff has developed a Draft Plan of Finance for the Airport which is a
self-funding enterprise. The Port’s non-Airport operations – Maritime, Economic Development
and the Port’s participation in the Northwest Seaport Alliance - share funding resources. For the
2019-2023 periods, the full CIP exceeds available funding resources. Staff has undertaken a
funding prioritization process and deferred certain capital projects. The Draft Plan of Finance
illustrates that even with project deferral, the $72 million levy in the Preliminary Budget is
insufficient and leads to the recommendation to increase the tax levy to $74.16 million.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation slides –Tax Levy and Draft Plan of Finance 2019-2023
COMMISSION AGENDA – Briefing Item No. 7c Page 2 of 2
Meeting Date: November 13, 2018
Template revised September 22, 2016.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 7, 2018 – The Commission held a special budget session on Maritime and EDD
Capital Budgets.
October 25, 2018 – The 2019 Preliminary Budget Document was released to the public.
October 23, 2018 – The Commission received the 2019 Preliminary Budget Document.
October 10 and 23, 2018 – The Commission was briefed on 2019 Operating Division
Budgets.
September 25, 2018 – The Commission was briefed on the 2019 Central Services
Preliminary Budget.
July 24, 2018 – The Commission was briefed on the 2019 Economic Development Division
Business Plan and Budget Development.
July 24, 2018 – The Commission held a pre-budget study session (Maritime and Economic
Development CIP and Capital Funding).
July 10, 2018 – The Commission was briefed on the 2019 Maritime Business Plan and
Budget Development.
June 26, 2018 – The Commission was briefed on the 2019 Aviation Business Plan and Budget
Development.
May 22, 2018 – The Commission was briefed on the 2019 Budget Process and Development.
