ITEM NO:       6c_Supp_2___ 
DATE OF MEETING: November 8,2016 
Port of Seattle 
2017 Preliminary Budget 
First Reading & Public Hearing 
Commission Briefing 
November 8, 2016 

1

Outline 
2017 Budget Process Recap 
2017 Budget Overview 
5 Year Net Operating Income Forecast 
2017 Operating Budget 
2017 Comprehensive Op & Non-Op Budget 
2017 FTE Summary 
2017-2021 Capital Budget 
2017 Sources and Uses of Funds 
2017 Proposed Tax Levy 
Remaining 2017 Budget Schedule 

2

2017 Budget Process 
Jun. 14       Strategic Positioning for Growth (SPG) Budgeting Initiative Briefing 
Jul. 26       Long Range Plan Update and Budget Considerations beyond the Long Range Plan Briefing 
Aug. 9       Commission approval of Long Range Plan 
Aug. 19      Memo to Commission regarding key budget assumptions for 2017 
Sept. 13      2017 Budget Overview and Key Assumptions Briefing 
Sept. 27      2017 Corporate Operating and Capital Budgets Briefing 
Oct. 10       2017 Division Operating and Capital Budgets Briefing 
Oct. 18       Preliminary Budget document to the Commission 
Oct. 20       Preliminary Budget document released to the public 
Nov. 8        Preliminary Tax Levy and Draft Plan of Finance Briefing 
Nov. 8        First Reading & Public Hearing of the Preliminary Budget 
Nov. 22       Second Reading & Final Passage of the Preliminary Budget 
Dec. 2        File Statutory Budget with King County 
Dec. 15      Release the Final Budget and Draft Plan of Finance 
Budget driven by Long Range Plan 
3

2017 is a Growth Year 
Port is expanding its efforts to create jobs in line with the Century Agenda: 
Expanded outreach with cities and counties across the state 
Meeting with businesses (current and new) to spur additional development 
Interfacing with community stakeholders to create workforce development opportunities 
Expanded public outreach, education and awareness regarding Port initiatives 
Airport is growing: 
44% growth, 7.6% compounded annual rate, since 2012 
Entering phase of significant capital development 
Maritime is growing: 
Expecting 8.8% growth in cruise in 2017 to over 1 million passengers 
Major capital asset renewal and replacement needs 
Economic Development is poised for growth: 
Des Moines Creek Business Park expansion 
Preparing Lora Lake site for development 
Real estate strategy will identify significant future development opportunities 
Planning for growth and expanded outreach in 2017 
4

2017 Key Initiatives/Budget Drivers 
Enhance public outreach to increase awareness of Port contributions to
regional economic vitality and workforce development 
Expand the Port's internship program to increase career opportunities
for local students 
Accommodate the growth of core businesses, improve customer service
and meet operational challenges 
Implement 100% employee screening at the airport 
Support the airport capital development program 
Complete the Sustainable Airport Master Plan (SAMP) 
Strengthen Centers of Expertise to leverage capabilities Portwide 
2017 budget is driven by Portwide initiatives and strong growth 
5

5 Year Net Operating Income Forecast 
($ in 000's)                                                                                          Compound
Budget  Forecast  Budget             Forecast             Growth
OPERATING BUDGET            2016   2016   2017   2018   2019   2020   2021  2017 - 2021
Aeronautical Revenue                  $ 261,019  253,226  277,379  $ 297,314  $ 343,885  $ 365,489  $ 407,033      9.3%
Non-Aeronautical Revenue                275,305  295,271  298,774  $ 309,594  $ 314,991  $ 332,191  $ 340,919      4.4%
NWSA Distributable Revenue               51,829   55,136   46,708    46,328    56,359    55,170    51,394     -0.2%
SLOA III Incentive Straight Line Adj            (3,576)   (3,576)        (3,576)             0        0        0        0    -100.0%
Total Operating Revenues              584,578  600,057  619,285   653,236   715,236   752,849   799,346      6.5%
Total Operating & Maintenance Expenses    335,943  338,934  381,581   390,515   405,277   420,040   437,025     5.4%

Net Operating Income Before Depreciation     248,635  261,123  237,704   262,722   309,959   332,809   362,321     7.8%

Steady growth projected 
6

2017 Budget Highlights 
Operating revenues are budgeted at $619.3M, $34.7M or 5.9% higher
than 2016 budget 
Operating expenses are budgeted at $381.6M, $45.6M or 13.6%
increase from 2016 budget 
Net Operating Income is budgeted at $237.7M, $10.9M or 4.4% below
2016 budget 
The 2017 capital budget is $651.6M and the 5-year capital spending
plan is $2.7 billion 
The proposed tax levy for 2017 is $72 million 
The 2017 budget reflects the Port's growth and continued investments for the region 
7

Budget Changes Since 10/10/16 
Aviation Division 
Aeronautical revenues reduced by $721K due to lower operating expenses. 
Non-aeronautical revenues increased by $77K due to $100K additional revenue from Employee Parking,
slightly offset by lower revenue from Ground Transportation. 
Operating expenses reduced by $1.4M due to $1.2M refinement of Full Employee Screening costs and a
$100K reduction of a maintenance contract in the Fire Department. 
Maritime Division 
Cruise revenue reduced by $48K due to a cancelled sailing. 
Economic Development Division 
Added $257K for elevator work at Bell St Garage. 
Corporate 
Expenses increased by a net $54K due to additional Commission Office FTEs and removal of ICT Risk
Assessment outside services by Internal Audit. 
Storm Water Utility refined internal charge calculation resulting in a $128K expense reduction. 
NWSA Distributable Revenue decreased by $199K to $46.7M. 
The net change is a $418K increase in NOI 
8

2017 Operating Budget 
2015    2016    2016    2017  Budget Change Budget vs Forecast
($ in '000s)                        Actual   Budget  Forecast   Budget       $ %        $ %
Operating Revenues
Aeronautical                 229,624  261,019  253,226  277,379  16,360   6.3%    24,153   9.5%
SLOA III Incentive Adj.             -3,576    -3,576    -3,576    -3,576 -       0.0% -       0.0%
Non-Aeronautical              196,844  208,321  225,702  226,681  18,361   8.8%      979   0.4%
Aviation                        422,892   465,764   475,352   500,484  34,720   7.5%    25,132    5.3%
Maritime                      47,268   49,314   49,801   51,830   2,516   5.1%    2,029   4.1%
Economic Development            18,164   13,745   15,409   16,030   2,285  16.6%     621   4.0%
NWSA Distributable Revenue         61,401   51,829   55,136   46,708  -5,122  -9.9%    -8,428  -15.3%
Stormwater Utility                    2,808    3,581    4,014    3,845     264   7.4%      -169   -4.2%
Other                          491     345     345     388     44  12.6%      44   12.6%
Total                       553,023  584,578  600,057  619,285  34,707   5.9%    19,228   3.2%
Operating Expenses
Aviation                        238,140   267,791   271,683   301,796  34,005  12.7%    30,113   11.1%
Maritime                      33,443   42,467   41,052   46,469   4,001   9.4%    5,417   13.2%
Economic Development            19,206   23,446   24,176   28,939   5,493  23.4%    4,763  19.7%
Licensed NWSA Assets           18,077     121     300    1,128   1,007 833.6%     828  275.9%
Stormwater Utility                    2,440    1,759    1,378    2,882   1,123  63.9%     1,504  109.2%
Corporate                      543     359     345     367      8   2.1%      22   6.5%
Total                       311,850  335,943  338,934  381,581  45,638  13.6%    42,647  12.6%
Net Operating Income            241,173  248,635  261,123  237,704  -10,931  -4.4%   -23,419   -9.0%
A record $619M of operating revenues for 2017 
9

2017 Budget for Tourism 
Economic Development Tourism Initiatives ($721K total):
$245K for UK Marketing Core Communication 
$165K for Other International/Visit Seattle 
$150K for Tourism Grant program 
$50K for World Trade Market & Familiarization Trips 
$39K for Consultant Services related to tourism events 
$35K for Program Marketing Cruise & Stay 
$37K for Advertising and other 
Tourism Development Department Office expenses 
$564K for staffing and other expenses in 2017 
Maritime Tourism Initiatives: 
$300K for Best in Class 
$157K for Destination Awareness 
$1.7 million budgeted to support Tourism program 
10

2017 Budget for Interns 
Human Resources budgeted for 82 new high school intern
positions and a High School Internship Program Manager. 
Workforce Development budgeted for 30 intern positions in the
High School Career Exploration and Intern Program Development
Program (public private partnership). 
Individual departments budgeted 44 college and graduate interns. 
A total of 156 intern positions in the 2017 budget. 

Internship program provides career opportunities for local students 
11

2017 Comprehensive Budget Summary 
2015    2016    2016    2017    Budget Change  Budget vs Forecast
($ in '000s)                              Actual   Budget  Forecast   Budget        $ %        $ %
Revenues
1. Aeronautical Revenues                  229,624   261,019   253,226   277,379    16,360     6.3%   24,153     9.5%
2. SLOA III Incentive                      (3,576)   (3,576)   (3,576)   (3,576) -     0.0% -     0.0%
3. Other Operating Revenues               326,975   327,135   350,407   345,482    18,348     5.6%   (4,925)    -1.4%
4. Tax Levy                            72,819   72,000   72,000   72,000 -     0.0% -     0.0%
5. PFCs                              79,209   84,650   85,586   89,087     4,437     5.2%    3,501     4.1%
6. CFCs                              23,540   24,963   24,963   26,300     1,337     5.4%    1,337     5.4%
7. Fuel Hydrant                          6,957    7,098    7,098    7,024      (74)    -1.0%     (74)    -1.0%
8. Non-Capital Grants and Donations            5,358    3,566    3,566    8,595     5,028   141.0%    5,028   141.0%
9. Capital Contributions                    22,804   23,406   18,531   15,000    (8,406)   -35.9%   (3,531)   -19.1%
10. Interest Income                       9,091    8,537    12,535   10,822     2,285    26.8%   (1,712)   -13.7%
Total Revenues                     772,801  808,799  824,336  848,113    39,314    4.9%   23,777    2.9%
Expenses
1. O&M Expense                        311,850   335,943   338,934   381,581    45,638    13.6%   42,647    12.6%
2. Depreciation                         163,338   162,451   164,451   166,300     3,849     2.4%    1,849     1.1%
3. Revenue Bond Interest Expense            110,128   121,423   116,476   122,026      603     0.5%    5,550     4.8%
4. GO Bond Interest Expense                10,490   14,726    9,808    17,714     2,988    20.3%    7,906    80.6%
5. PFC Bond Interest Expense                5,584    5,302    5,302    4,985     (317)    -6.0%     (317)    -6.0%
6. Non-Op Environmental Expense             2,888    5,000    5,000    5,441      441     8.8%      441     8.8%
7. Public Expense                        5,023    8,898    8,898    2,488    (6,410)   -72.0%   (6,410)   -72.0%
8. Other Non-Op Rev/Expense               23,498    3,319    10,335     (257)    (3,577)  -107.7%   (10,592)  -102.5%
Sub-Total                         632,800  657,064  659,204  700,278    43,215    6.6%   41,074     6.2%
Revenues over Expenses            140,001  151,736  165,132  147,835   (3,901)   -2.6%  (17,297)  -10.5%
9. Special Item                         120,000   147,700   147,700 -   (147,700)  -100.0%  (147,700)  -100.0%
10. Retro Adj to Net Position                  77,342 - - - -      n/a -      n/a
Total Expenses                     830,142  804,764  806,904  700,278  (104,485)   -13.0%  (106,626)   -13.2%
Change In Net Assets               (57,341)   4,036   17,432  147,835   143,799  3563.3%  130,403  748.1%
A strong financial position for the Port in 2017 
12

10 Year Comparison of FTEs to Revenues 


The annual compound growth rate is 1.0% for FTEs compared to 3.1% for operating revenues from 2007 to 2016. 
Moderate FTE growth for the past 10 years 
13

FTE Summary for 2017 
Aviation Maritime  Econ Dev Corporate    Total
2016 Approved FTE's        892.8       184.3         33.8        745.4      1,856.3 
Mid Year Approval - -      1.0      9.0     10.0 
Eliminated               (0.3) -         (1.0)         (2.0)        (3.3) 
Net Transfers (note 1)       (50.2)        (30.3)           0.7         79.7         (0.0) 
Adjusted 2016 FTE's         842.4        154.0          34.5        832.1       1,863.0 
2017 Budget
Eliminated               (5.0) - -         (1.3)        (6.3) 
Transfer - -    (1.5) -   (1.5) 
New FTE's (note 2)        117.5         7.3         3.0        37.9       165.7 
Total 2017 Changes          112.5         7.3         1.5        36.6       157.9 
Proposed 2017 FTE's       954.9       161.3         36.0       868.7      2,020.8 
Notes:
1) Net transfers include all the FTE transfers resulted from Phase II re-org.
2) Includes 85 new FTEs for the Screening Function in Aviation and 82 (or 16.4 FTEs) for new High School Interns positions in HR.
FTEs driven by budget priorities and growth initiatives 
14

Capital Budget Summary 
Capital Budget Summary by Division 
$'s in 000's                2017    2018    2019    2020    2021    2017-2021
Aviation                 590,498  663,351  498,316  354,778  294,193   2,401,136 
Maritime                35,020  44,340  48,775  14,862  21,638    164,635
Economic Development      15,950  23,952  33,465   4,120   4,130    81,617
Stormwater Utility             2,140   1,650    1,650    2,150   2,150      9,740
Corporate and Other         7,969   9,152   9,002   9,511   9,692    45,326
Total                 651,577  742,445  591,208  385,421  331,803  2,702,454

The Port continues to invest in the region with a 5-year capital plan of $2.7 billion 
15

Sources of Funds 


The Port has diversified funding sources 
16

Uses of Funds 


Capital spending comprises nearly half of Port expenditures 
17

2017 Tax Levy 
Tax Levy Amount: 
Levy amount established by the Commission each
year as part of the budget process 
The proposed levy for 2017 is $72 million 
The maximum allowable levy for 2017 is estimated to
be $98.7 million 
Projected rate change from $0.1704 to $0.1544 
The Port has managed the tax levy prudently 
18

2008-2017 Tax Levy & Millage Rate 


The Port has gradually reduced tax levy amount since 2009 
19

2017 Tax Levy 
Proposed 2017 Tax Levy Uses: 
General Obligation (G.O.) Bond Debt Service 
Regional Transportation projects 
Environmental remediation 
Capital improvements at Pier 66 
Capital projects in support of the fishing industry 
Other capital projects and initiatives meeting specified criteria
endorsed by the Commission 
Economic development initiatives including workforce development and
Economic development partnership program 
Tax levy uses include strategic initiatives 
20

Remaining Budget Schedule 
Second Budget Reading               Nov. 22, 2016 
File Statutory Budget with King County      Dec. 2, 2016 
Release the Final Budget Document        Dec. 15, 2016 

Statutory budget to be filed with the County on December 2 
21

Port of Seattle 
2017 Preliminary Budget 
First Reading & Public Hearing 
Commission Briefing 
November 8, 2016 

22