Even the losses shown above, by business unit, understate the real losses for each unit.
The Port continues to conceal the actual extent of their financial losses in each business unit.
The table in this story does not include interest on the debt the Port has incurred for capital projects. The Port owes about $30 million in debt, incurred for capital facilities that help generate revenue.
That's fine, but it's important to attribute the debt service paid by the Port to the various functions for which the debt is incurred.
The Port Budget, on page 127 (see link below) shows annual interest expense for 2024 as $1.1 million. But they lump it all together, rather than showing that debt service by business unit.
What happens to these net-losses for each business unit if that interest is spread between the businesses on the same basis as depreciation (interest and depreciation are both costs associated with recovering the capital investment, but not necessarily in precise proportions).
If that $1.1 million in interest expense was distributed among the categories above, on the same basis as depreciation expense, it would:
a) add about $600,000/year in red ink to the Marine Terminal. Meaning the "real" budgeted loss for the Marine Terminal is more like $1.7 million.
b) About another $300,000 would be attributed to the airport, meaning an $800,000 loss.
c) About $200,000 in interest attributable to Swantown, meaning a $500,000 loss.
d) Finally, about $100,000 attributable to the properties, meaning a $350,000 loss.
That's a lot of red ink. I understand why the Port is trying to conceal this: it looks bad. But we have three new Commissioners taking office soon, and I hope they demand more transparency in the Port budget and quarterly financial reports than has been the practice in the past under now-departed manager Sam Gibboney.
It's time to turn the page at the Port of Olympia, and see honest budgeting, honest financial reporting, and respectful treatment of the public and our taxes.
The full budget can be viewed at https://portolympia.com/wp-content/uploads/2023/11/2024-DRAFT-Budget.pdf
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