Regional Port reviews 2027 budget with $32 million in capital spending

WENATCHEE – The Chelan Douglas Regional Port Authority is weighing which projects to add to a preliminary 2027 budget that already includes about $32 million in capital spending, largely for work carried forward from prior years.

At their Nov. 4 retreat, commissioners reviewed a list of proposed additions. Staff estimated that moving ahead with all the projects it identified as priorities would require drawing about $1.4 million from reserves. The amount will depend on which projects commissioners include in the final budget.

Finance and Administration Director Monica Lough projected the Port would enter 2027 with about $14.9 million in unrestricted funds, depending on how much it pays out on capital projects before the end of 2026. The Port’s reserve policy calls for keeping enough cash to cover six months of operating expenses.

Commissioners supported moving ahead with financial modeling for a possible parking overhaul at Pangborn Memorial Airport. Staff identified about $45,000 for that work in the proposed budget. At the Trades District, design work for the second phase is already funded, and staff said construction was unlikely to begin in 2027.

The budget discussion also covered how the Port uses its property tax levy. Staff estimated about 47% of the levy would be available for capital projects in 2027. Port CEO Jim Kuntz said that share has declined over time and identified a closer look at the Port’s long-term finances as a priority for the coming year.

One source of revenue will taper off as construction wraps up. The Port expects about $1.3 million in fees for managing Microsoft projects in 2027, a smaller amount in 2028 and none in 2029. Microsoft pays a 5% management fee in addition to reimbursing the Port for project costs.

The Port has overseen Microsoft-funded work in Malaga that includes new wells, reservoirs and water mains for the Malaga Water District, as well as construction of the separate industrial cooling water disposal facility.

Kuntz also identified filling vacant buildings and hangars as a priority for 2027. At the Cashmere Mill District, commissioners discussed whether smaller spaces could attract contractors serving the Upper Valley. Staff said it receives inquiries for spaces of about 3,000 to 5,000 square feet. Commissioners wanted to assess demand and see how the buildings could be divided before spending money on renovations.

Andrew Simpson: 509-433-7626 or andrew@ward.media