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Port reports improved reserves and borrowing capacity; breakwater project schedule still tied to federal steps
Summary
Port finance staff reported year-end 2024 results showing operating variances across airport, industrial park and marinas, a rise in cash and investments and available borrowing capacity; commissioners discussed the breakwater project schedule and contingency options including bonding if federal funding delays occur.
Port of Bremerton finance staff presented a detailed year-end review for 2024, reporting operating variances across the airport, industrial park and marinas, improved reserves and a large remaining capacity to borrow for capital projects.
James, the presenter, said the port closed 2024 with about $20.3 million in cash and investments, up from roughly $17.1 million the prior year, after internal capital funding and operations. He described nearly $11.3 million in restricted reserves and capital commitments and said the port held about $4.5 million in additional reserves considered available for capital or unplanned needs. "We were at 9,900,000 and now we're at 11,300,000," he said, describing restricted amounts set aside for committed projects and stormwater funds.
On operations, the airport missed full cost recovery and ended the year with an operating loss but beat budgeted revenues due to CPI-based rent increases and higher miscellaneous sales such as assessed late fees. The industrial park outperformed budget largely because expenses were lower than planned and occupancy was stronger than the conservative vacancy assumptions. Marinas also beat budget on revenues after a midyear tariff increase and higher electric sales, though electricity costs rose in parallel.
Staff highlighted maintenance, payroll and insurance as the largest expense drivers across business units. James said maintenance backlogs partly explain yearly variance and that preventative maintenance is a continuing priority. Commissioners asked about overtime controls; managers described weekly or biweekly review of timecards and approvals for unplanned overtime.
On capital projects, staff updated the breakwater project timeline: permitting and federal funding steps have introduced schedule risk but, as James summarized, federal representatives have indicated funding remains in place. The port expects off-site prefabrication and a construction window for in-water work generally between July 15 and Feb. 15 of a given year, and staff said they are aiming for bid activity this year with construction over multiple years thereafter.
Staff also reviewed debt capacity: the port has the ability to borrow up to about $54.7 million given assessed value but currently carries only about $1.1 million in outstanding debt, or roughly 2% of capacity. James said borrowing or bonding would be an option if grant funding were delayed and the port needed to move forward on major capital work.
No formal action was taken on operating budget figures during the presentation; commissioners praised staff for strengthening reserves and asked staff to continue monitoring operating expenses and maintenance priorities.
