ORE. (April 7, 2014) – Port Commission to Kick Off FY 2014-15 Budget Discussion
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
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.
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.
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.
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
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 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.
2015 marine operating revenues are budgeted to increase approximately 3.7
percent or $1.1 million from the FY 2014 adopted budget.
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.
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.
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.
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 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.
Wednesday, April 9, copies of the Port of Portland Proposed FY 2015 budget will
be posted on the Port website www.portofportland.com.