Friday, October 2, 2026
The Port of Olympia Commission adopted its 2026 budget at a meeting on Monday, Nov. 24.
The budget projects the port’s cash balance starting at $24.7 million and declining to $13.6 million at the end of 2026.
The port’s operating budget is expected to run in the green, but debt service payments and costs for capital projects should continue to put downward pressure on cash reserves.
The budget includes a $15.6 million capital expenditure plan, which mostly contains continuing projects.
The only new item in the plan is a possible dewatering facility in the marine terminal, which could cost around $500,000.
Port Executive Director Alex Smith said the project would only continue if the port could secure a certain customer for the facility.
In commenting on the budget, Commissioners Amy Evans Harding and Jasmine Vasavada expressed approval of the port’s direction.
Evans Harding praised Smith’s leadership for reducing employee turnover and improving contract efficiency. Vasavada echoed the same sentiments and took note of debts that are set to retire in the coming years.
A copy of the 2026 budget is available for viewing here.
Before adopting the budget, the commission listened to comments from the audience. A number of people spoke during that portion of the meeting, as well as during the regular public comment segment, which happened before the budget discussion.
One budget item that was of particular interest was a $6.5 million line item for a second warehouse on the marine terminal.
According to the port’s capital investment plan, the port has so far spent $500,000 on the design of the structure and plans to spend additional money on construction in 2026.
According to presentations to the commission in 2024, the structure would be built beside an existing warehouse. It would cover 70,000 square feet and feature a metal frame covered by ripstop fabric.
The warehouse would be used to store additional cargo from Suzano, a Brazilian pulp manufacturer and paper producer.
During public comments, six people spoke specifically about the marine terminal, with two longshoremen being in favor and four residents against.
Many in the opposition, including Commissioner-elect Krag Unsoeld, were particularly concerned about investing in the facility when the port does not have a contract with Suzano.
Resident Lee Reiner claimed the port gave Suzano a “sweetheart deal” to secure their business when the Port of Grays Harbor could have been an easier route for the company.
Longshoreman Lee Rose quickly came to the podium after Reiner to rebuke her allegation, saying the Port of Grays Harbor didn’t want the cargo.
Vasavada also dismissed Reiner’s comments as speculation and advised people who regularly engage with the port “to testify using germane facts and evidence.”
She acknowledged the risks associated with the warehouse project, but noted the port is pursuing it based on staff’s expert input.
“For me, we have a marine terminal director Afsin Yilmaz ... who has spent 15 years in the marine services and cargo trade. And based on his advice and briefing, he sees this as an opportunity,” Vasavada said.
“The reason that the cargoes are here is not because we provided any sweetheart deal, but I do believe it's because we have a really skilled workforce.”
Vasavada added the commission has been advised that there are not many marine warehouses available, which could position the port to acquire new business in the future.
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BobJacobs
(1) The third paragraph of this article indicates that the JOLT needs to find some reporters who understand finance.
(2) The cost estimate for the second warehouse seems to have ballooned rather quickly. This project is highly risky and thus inappropriate for a government investment [the Port of Olympia is a special purpose local government with elected port commissioners and taxing authority.]
Bob Jacobs
Wednesday, November 26, 2025 Report this
jimlazar
Leave it to the Port of Olympia staff to describe a year in which they start with $24 million in the bank, collect over $8 million in taxes, and end with $13 million as "running in the green."
Sorry: before taxes, they are $19 million worse off at the end of the year than the beginning. The taxes have nothing to do with Port operations -- they are just a subsidy from the rest of us to Weyerhaeuser, people with yachts, and people with airplanes.
The Port loses money nearly every year on nearly every one of its operations. Once all costs -- debt service, depreciation, administrative costs, and operating costs are considered -- the marine terminal loses a couple million dollars a year, the airport about one million, and the marina, fuel terminal, and the stormwater facility (which should be counted as part of the marine terminal) all lose money as well.
But the Port hides this by improperly excluding interest expense in most of their computations of "in the green" and including taxes in their bottom line. That's not right. Properly computed, they lose money on everything.
The Port of Olympia holds over a half-billion dollars (>$500 million) in public assets, mostly real estate appraised annually by the County Assessor. Most corporations with a half-billion of assets, and less than $50 million in debt (a 90% equity ratio) would be profitable, and would pay dividends to their shareholders (us) every year. A 4% dividend would mean about $20 million in tax refunds every year; instead we pay $8 million in taxes TO the Port every year.
It's time for the Port to stop investing in things that lose money (the new warehouse is a prime example, as they don't have a long-term lease to a tenant. The last time the Port built a warehouse it was to store stuff from a Russian shipping company -- which disappeared within months of the completion of the warehouse. The Port's response to that mistake is to double-down and build another warehouse without a reliable tenant.
The Port of Olympia is an embarrassment to this community of thoughtful, creative, and hard-working taxpayers.
Thursday, November 27, 2025 Report this