The Port of Centralia will not enact an increase in local property taxes this year after leadership declined to take either an administrative refund or the allowed 1% annual property tax revenue increase.
The Centralia Port Commission voted unanimously against enacting any of the allowed property tax increases during a twice monthly meeting on Wednesday, Nov. 4. The commissioners cited aspirations for the port to rely less on property tax revenue and a responsibility to not take increases when possible.
Of the two avenues for property tax revenues, taking an administrative refund was the more significant of the two options. Due to a tax refund settlement between Lewis County and Sierra Pacific, the port could have recouped up to $58,522.01 that it was required to pay back to the company, according to Port of Centralia documents. Administrative refunds are recouped by taxing districts by raising property tax levies.
The 1% property tax increase would provide the port district an additional $12,501.28. Without it, the port district will still see an increase in property tax revenue thanks to revenue from newly constructed buildings.
The port's newest commissioner, Joel Cummins, said he was taking guidance from general election results in Lewis County, where voters were against the Timberland Regional Library levy lid lift. Cummins said he considered it a local mandate against increasing property taxes.
“They did not want to approve the rate increase on the library, if I'm correct, and so that is a signal to me that they are not looking, the citizens of Centralia, Lewis County in general, are not jumping up and down about more taxes,” Cummins said.
The levy lid lift did pass by a significant margin, counting votes from all five counties that it serves. Lewis County was the only county to count more votes against the levy lid lift than in favor.
Port of Centralia Commissioner Ally Pickard argued the port, as a for-profit entity, had an obligation to avoid property tax increases when possible, especially considering that other local governments and tax districts do not have other sources of revenue outside of tax levies.
“I understand that there are other taxing districts that have to do that. I imagine, you know, the school district and the city and things like that,” Pickard said. “I am very adamant that we take option four of not raising any taxes and not going into our citizens' pockets for the refund.”
The Centralia City Council recently took its allowed 1% tax increase as part of its own budgeting process.
Pickard aired frustration over the major tax refund going to Sierra Pacific, referring to other recent significant tax refunds to major businesses, the most recognizable of them being Darigold in Chehalis.
Port of Centralia Director Amy Graber had presented four levy options to the Port of Centralia Commission, which included all possible combinations of accepting or declining the two possible increases.
The final decision on a property levy was the final step in the port's yearly budget process before the commission holds a final budget hearing during its next business meeting scheduled for Wednesday, Nov. 18.
Unlike cities and counties, port districts, such as the Port of Centralia, are subject to less strict budget rules and do not have to approve a preliminary budget or conduct nearly as many budget hearings. However, Graber did present a preliminary budget to the Centralia Port Commission during a public meeting at the beginning of last month.
The most recently published version of the preliminary budget available to the public is viewable on the Port of Centralia website in the meeting packet for the commission's Oct. 21 meeting. To access the port's meeting agendas, minutes and packets, visit https://tinyurl.com/y5af2xkz.
The roughly hour-and-a-half informational session on the 20217 budget was relatively uneventful. While some feedback was given and questions were asked, the commissioners did not make any requests for significant changes to the preliminary budget.
According to the preliminary budget presented late last month, the Port of Centralia expects to bring in approximately $10.6 million in revenue next year, which includes roughly $1.26 million in property tax revenue, $8.1 million in revenue from the sale of property and around $1.1 million in lease revenue. It also addresses a number of significantly smaller revenue sources ranging between $500 and $50,000.
On the other side, the port is expecting to spend approximately $2.1 million on a range of expenses. The most significant expenses are staff salaries and benefits as well as property maintenance. The port also discussed contributing more to three local members based groups: the Centralia Downtown Association, the Economic Alliance of Lewis County and the Centralia-Chehalis Chamber of Commerce. Commissioner Pickard advocated for contributing $5,000 to each.
The port took in significantly less in property sale revenue in 2026 than expected. That is in part due to the delay of sales for Logistics Property Company LLC and Wilco, which is expected to construct a new location in Centralia Station, as well as Chipotle backing out of a purchase in Centralia Station.
The projected 2027 revenue from sales of more than $8 million accounts only for the sale of land to Logistics Property Company LLC.
Also noteworthy, the 2027 budget includes payments on just one debt owed by the port, with port leadership expecting to finish paying off two other debts by the end of the year.
“Pretty close to debt free,” Graber remarked.
“As close to debt free as we can be,” Pickard responded.
The final loan owed by the port includes a non-prepayment clause barring the port from paying it off early. According to Graber, that loan is “fairly minimal” at around $240,000.
