PORT ANGELES — Port of Port Angeles commissioners adopted a $42 million budget for 2026, approved the annual property tax levy and adopted updates to the port’s comprehensive scheme.
The budget, which was approved Monday, includes $11.7 million in operating revenue and $10.6 million in operating expenses, producing a $1.04 million operating surplus before depreciation. Cash reserves are projected to fall from $21.6 million to $16.5 million by year’s end, reflecting $36.14 million in capital construction planned for next year. More than three-quarters of that spending — $27.44 million — will be supported by federal and state grants.
Major projects for next year include $13.8 million for cofferdam improvements at the log yard, $6.5 million for rehabilitation of Taxiway A at William R. Fairchild International Airport and $1.5 million for a new airport hangar.
Work will continue at Marine Trade Center planning, along with infrastructure improvements at Port Angeles Boat Haven and John Wayne Marina.
Revenue at the marine terminal revenue is projected to rise, aided by the likelihood of securing a U.S. Department of Transportation Maritime Administration Ready Reserve Force contract. The port anticipates activity at the log yard to increase, while rental property revenue is expected to decline due to vacancies and some rate-structure changes.
Expenses also are expected to climb next year. Marine Terminal costs will rise due to security staffing and new federal cybersecurity requirements, while both marinas will face higher IT security and maintenance needs.
Commissioners approved a 1 percent property tax levy on Monday totaling $1.88 million. The estimated levy rate will be $0.10687 per $1,000 of assessed value, meaning the owner of a $415,000 home will pay about $44.35 next year.
The increase — the maximum allowed under state law — represents an additional $18,107.90 compared with last year. Levy revenue is not used for daily operations but supports capital projects, debt service, environmental cleanups and economic development work.
Commissioners also adopted updates to the port’s comprehensive scheme of harbor improvements — a long-range planning document required by state law. The updated scheme reflects the port’s evolving project list, environmental obligations, waterfront development priorities and long-range financial projections, including more than $100 million in capital needs through 2030 and another $136 million estimated from 2031 to 2046.
Commissioners also approved several actions related to Executive Director Paul Jarkewicz’s performance review, including raising his salary from $195,890 to $220,000 and changing his title to chief executive officer. The changes align his compensation with similarly sized ports and reflect the scope of the port’s expanding workload, commissioners said.
Jarkiewicz was hired on July 25, 2023.
“I’m extremely pleased with the progress that we’ve made under Paul’s leadership. We’ve made just phenomenal changes at quite a rapid speed,” Commissioner Connie Beauvais said.
“There is not a single tax dollar that is used for your salary. All that comes out of the operating funds of the Port of Port Angeles. I’m really proud to say that this special taxing district is able to support its own operations for the services that it provides, not just to our tenants, but for our employees, too.”
Commissioner Steve Burke added that the port has “the strongest team” he has seen since he was elected.
“You have ability to really bridge divides and connect with other local agencies, state agencies and federal agencies,” he said.
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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.
