Budget for Port hits $23 million
The budget was $10.8 million. New tenants have added revenue, as will bonds for big projects.
By Vicki Hillhouse of the Union-Bulletin
A flood of new projects has increased the Port of Walla Walla's annual budget to one of its largest dollar amounts ever.
Pending purchase of a 1,900-acre fiber farm from Boise Cascade, development of a water system for Tyson Foods and a possible office expansion for Key Technology are among the latest projects proposed.
In response, Port commissioners on Thursday approved a supplemental budget that reflects a swell from about $10.8 million to $23.5 million.
``In your 30 years of on-and-off service here did you ever think you'd see a $23 million budget?'' Commissioner Michael Fredrickson asked Commissioner Fred Bennett before the unanimous vote of approval Thursday.
``In a sense I did, but maybe not this great this fast,'' Bennett replied.
Port Executive Director Jim Kuntz called the new budget ``substantially different'' than that approved by commissioners last December.
The change is attributed to a gamut of economic development opportunities that have been presented.
``It's a very exciting time for the Port around here,'' Kuntz said.
Several new tenants have helped add revenue to the budget. But major projects for which the Port anticipates issuing bonds are also part of the plan.
``To accomplish our aggressive capital investment strategy we are going to have to go into the debt market and issue a combination of debt,'' Kuntz said this morning.
If all of the proposed acquisitions and expansions move forward, he said the Port could use a combination of general obligation and revenue bonds for financing about $7.75 million in projects.
In a general obligation bond, the Port would be backed by its credit and taxing power. A revenue bond is supported by revenue from a specific project.
Among the Port's additional expenses are legal fees anticipated to climb from an estimated $50,000 to $150,000. Kuntz said the increase is due to representation needed as part of a major business recruitment project.
Legal fees also account for one of the larger increases in the airport budget. The airport legal budget is expected to increase from $20,000 to $55,000. Kuntz said the increase is due to representation in the Port's ongoing issues with the Federal Aviation Administration and purchase of the Olson farm.
The largest change in the airport budget is the addition of about $500,000 expected from the state for construction of two more winery incubator buildings. The Port also expects to fund another roughly $150,000 of that project.
As development takes place, Kuntz said this supplemental budget may be just the first of more to come this year. Port districts are allowed to have as many supplemental budgets as needed on account of their ongoing economic development activity.
Kuntz said Thursday the changes are reflective of the entrepreneurial nature of the Port.
``This is the road map for the remainder of the year,'' he said.
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