Contact: Martha Richmond 503.415.6061

FOR IMMEDIATE RELEASE

PORTLAND, ORE. (April 7, 2014) – Port Commission to Kick Off FY 2014-15 Budget Discussion

The Port of Portland Commission will begin discussion of the Fiscal Year 2014-15 budget at a public hearing during the regularly scheduled meeting Wednesday, April 9 at 9:30 a.m. at the Port’s headquarters building, 7200 N.E. Airport Way.

On May 14, Port Commissioners will consider preliminary approval of the FY 2015 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 11, and the Port Commission will consider final adoption of the budget at a special meeting on June 19.

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 $259.4 million and $180.4 million respectively for FY 2015, compared to the Adopted FY 2014 budget of $262.8 million and $173.4 million.  The operating revenue decrease is due to lower industrial land sales budgeted for FY 2015, as a result of a slower than anticipated industrial land market.

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 $9.9 million of the Port’s budget comes from property taxes or about 7 cents per thousand in assessed value.

Aviation

Travel at Portland International Airport is on the rise.  Approximately 16 million passengers are expected to travel through PDX in FY 2015.  This growth is spurred by nearly two dozen new nonstop service improvements among airlines serving PDX.

The PDX FY 2015 operating revenues, including airline, rental car, parking, and concessions revenues, are budgeted to increase 6.2 percent or $11.8 million from the FY 2014 adopted budget. 

Marine

FY 2015 marine operating revenues are budgeted to increase approximately 3.7 percent or $1.1 million from the FY 2014 adopted budget.

Activity in the marine division has been mixed, and the forecast for FY 2015 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 affected the Terminal 6 container facility.  While the FY 2015 container volume is forecast to be 192,500 twenty-foot equivalent units (TEUs), which is 8.3 percent lower than the FY 2014 Adopted Budget, it is 13.1 percent higher than the FY 2013 actuals of 170,177 TEUs. 

Mineral bulks are forecast to increase nearly 7 percent over the FY 2014 adopted budget as a result of additional facility expansion and improvements at Terminals 4 and 5.  These facility improvements are expected to help further increase record high soda ash volumes.  In addition, lower pricing agreements with China are expected to help increase potash export volumes through Portland.

The forecast for breakbulk activity is a decrease of approximately 29 percent and the forecast for auto volumes is a decrease of 8.4 percent in FY 2015. Portland continues to be the second largest auto import gateway on the U.S. West Coast, and fifth in the nation for auto imports. 

Lastly, the forecast for grain activity is a decrease of nearly 8 percent compared to the FY 2014 Adopted Budget.  This decrease is a result of the overall increased grain capacity and competition along the Columbia River.  With the global demand for grain continuing to increase, the future opportunities for Columbia Grain, with their expanded facilities, look good as market shares are expected to stabilize.

Capital Projects

Due to the impacts of the region’s slow but steady economic recovery, the current focus is slowly returning to a period of new asset growth while continuing investments in maintaining existing assets and infrastructure.  The FY 2015 total Port capital budget at $192.4 million (excluding staff time) is higher than last year, but significantly lower than the peak expenditures of $262.7 million in FY 2009.  Major projects at PDX include terminal building improvements such as post security concessions redevelopment and carpet replacement, as well as airfield taxiway rehabilitation projects.  In addition, to ensure the business park properties are ready when customers are ready, the capital budget includes the continuation of phase two development at the Troutdale Reynolds Industrial Park (TRIP), as well as improvements at the Gresham Vista Business Park.

Beginning Wednesday, April 9, copies of the Port of Portland Proposed FY 2015 budget will be posted on the Port website www.portofportland.com.


Contact: Martha Richmond 503.415.6061



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