Port of Olympia Q1 finance report shows environmental cost effects

The Port of Olympia reported its financial report for the first quarter 2024.

Finance Director Tad Kopf presented the report to the Port Commission on Monday, June 2024. In contrast to past reports, it showed how environmental costs affect the port’s bottom line.

For the first quarter, the port generated an income of around $3.36 million, which was ahead of its estimates of around $181,000.

Kopf attributed the difference to better-than-projected revenues and reduced operating maintenance expenses.

The total income does not account for debt service payments, but another table showed that the port paid around $308,000 in interest payments for the first quarter. Kopf said in May that the port needs to pay $4.62 million in debt service payments this year.

The port’s income is mainly derived from non-operating revenues, which include property taxes, interest income, and proceeds from property sales.

Kopf said that property taxes totaled $1.96 million, while interest income was around $164,000, which came from the Thurston County investment pool. Sales proceeds totaled $2.73 million, which mostly came from the sale of the Commerce Building Center, which was $2.65 million.

The port also earned around $80,000 from selling two buildings at Cleanwater Center.

Non-operating revenues totaled $4.88 million, offset by non-operating expenses of $1.59 million.

Business lines

Finance Director Tad Kopf presented a slide showing the income statement of the Port of Olympia’s four business lines and two cost centers for …

Per business line, only the airport and marine terminal saw profits at around $56,000 and $87,000, respectively.

The airport saw higher land rents but lower space and hangar rents. Operating salaries were up due to an unbudgeted new position, while maintenance salaries were down but will pick up later this year.

The marine terminal benefited from elevated loading fees as more ships came in than expected. Kopf said the trend will likely continue due to the situation in Suez Canal.

The marine terminal also benefited from higher labor and rental fees, offset by higher costs from outside professional services that cover the work of longshoremen.

Meanwhile, the marina and boatyard lost around $299,000, while the properties segment lost $3,000.

The marina saw decreased moorage, collection fees, and space rentals.

The properties segment saw higher general and administrative costs due to increased insurance costs, offset by higher land and space rental and lower depreciation costs due to the sale of the Commerce Building Center.

Outside these segments, the port also spent $1.20 million on environmental expenses and around $103,000 in commission-related expenses.

Kopf noted that costs were evenly averaged across the year despite some expenses being associated with seasonal activities. The director said that in the future, they will consider allocating expenses per quarter by the weighted average to better reflect each quarter's financial situation.