Contact: Martha Richmond 503.415.6061

FOR IMMEDIATE RELEASE

PORTLAND, ORE. (April 8, 2013) – Port of Portland Begins Budget Process

The Port of Portland Commission will begin discussion of the (FY) 2013-14 budget at a public hearing during their regularly scheduled Commission meeting Wednesday, April 10 at 9:30 a.m. at the Port’s headquarters building, 7200 N.E. Airport Way.

The following month, on May 8, Port Commissioners will consider preliminary approval of the FY 2013-14 budget which allows for review by the Multnomah County Tax Supervising and Conservation Commission. The TSCC will hold a public hearing on the budget June 12, and the Port Commission will consider final adoption of the budget at a special Commission meeting on June 21.

The budget, which begins July 1, reflects a conservative approach based on continued slow economic recovery and flat to modest revenue increases across the Port’s aviation, marine and commercial real estate business lines.

Total Port operating revenues and operating expenditures are budgeted at $264.8 million and $189.5 million respectively for FY 2013-14, compared to the Adopted FY 2012-13 budget of $248.6 million and $162.1 million.

“The Port of Portland's FY 2013-14 budget reflects our continuing strong focus on retaining and growing key marine and aviation service as well as being a regional leader in industrial land acquisition and development,” said Port Executive Director Bill Wyatt.  “It recognizes that there are challenges ahead, but emphasizes our efforts to keep costs low for our customers, provide the services and facilities that get people and products where they need to go and increase our region’s ability to attract and retain jobs.”

Ninety-six percent of Port revenues come from user-based fees for service including airline, rental car, parking and concessions revenue as well as land sales and leases and marine terminal leases and fees. Approximately $9.5 million of the Port’s budget comes from property taxes or about 7 cents per thousand assessed value.

Aviation

Portland International Airport (PDX) FY 2014 operating revenues, including airline, rental car, parking, and concession revenues, are budgeted to increase 3 percent or $5.6 million from the FY 2013 adopted budget. 

Travel at PDX has been on the rise.  Approximately 14.8 million passengers are expected to travel through PDX in FY 2014, nearing a peak of almost 15 million passengers in FY 2008.  This growth has been spurred by a new airline—Virgin America-- and many new route options for our travelers including Alaska Airlines’ Ronald Reagan Washington National Airport service.  In addition, Spirit Airlines, jetBlue, Frontier, and Southwest also expanded air service. 

Air cargo volumes have also been on the rise and are expected to increase approximately

2 percent in FY 2014.  This growth is a result of Asiana Cargo Airline’s nonstop service connecting PDX with Korea and beyond, filling a strategic need for regional businesses.

Marine

FY 2014 marine operating revenues are budgeted to decrease approximately 3.6 percent or $1.1 million from the FY 2013 adopted budget.

Activity in the marine division has been mixed, and the forecast for FY 2014 looks to be much of the same across the marine business lines.  Over the past year, regional, national, and global economic forces have impacted the Port more heavily at its marine terminals.  In particular, continuing labor issues have had a profound impact at the Terminal 6 container facility.  The FY 2014 container volume is forecast to be 190,000 twenty-foot equivalent units which is 9.5 percent lower than the FY 2013 adopted budget. 

Mineral bulks are forecast to be approximately 2.6 percent lower than the FY 2013 adopted budget due to a forecasted potash decline of nearly 28 percent, partly offset by a projected increase in soda ash activity.

The forecast for breakbulk activity is an increase of approximately 5.7 percent representing growth in services at the Terminal 2 facility related to irregular breakbulk cargo shipments such as barite ore, granular urea fertilizer, manganese, and timber logs. Grain activity is forecasted to remain flat compared to the FY 2013 Adopted Budget. 

Portland continues to be the second largest auto import gateway on the U.S. West Coast, and fifth in the nation for auto imports.  The forecast for auto volumes is an increase of 12 percent in FY 2014 driven primarily by Toyota. 

Industrial Land Development

In support of the Port’s strategic focus on being a regional leader in industrial land acquisition and development, the FY 2014 budget includes $10 million for the purchase of additional industrial land as well as land sales at the Port’s Troutdale Reynolds Industrial Park and Rivergate Industrial Park.  The budget also includes several improvement projects at the Port’s Gresham Vista Business Park and further development of nine lots at TRIP. 

Capital Projects

With the recent completion of several large infrastructure projects, the current focus is on maintaining existing assets and infrastructure.  The FY 2014 total Port capital budget at

$134.8 million is significantly lower than peak expenditures of $262.7 million in FY 2009.  Major projects include taxiway and other pavement rehabilitation projects at PDX, runway construction at the Hillsboro and Troutdale airports, repowering of the dredge Oregon and a new PDX access control system.

“While we are encouraged by the economic progress in many of our business lines this past year, we have budgeted resources to address both the challenges and the opportunities ahead including future industrial land sales, continuing the West Hayden Island annexation process, waterfront labor disputes, the Portland Harbor Superfund Site cleanup process and the rapidly rising costs of healthcare and the Oregon Public Employees Retirement System,” said Port Chief Financial Officer Cindy Nichol.  “As an example we have committed to accomplishing the projects and programs set forth in our budget without increasing our workforce.”

Copies of the Port of Portland Proposed FY 2013-14 budget can be found on the Port website.


Contact: Martha Richmond 503.415.6061



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