Item No. 7c_supp_1 
Date:   October 28, 2014 

2015-2019 Draft Plan of Finance 

October 28, 2014

Topics 
Background and Assumptions 
2015-2019 Capital Funding 
Forecasted Debt Service Coverage 
Finance Activity for 2015 



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Draft Plan of Finance 2015-2019 
Each year at the end of the budget process, staff provides a summary
five-year Port-wide capital funding plan (The Draft Plan of Finance).
The 2015-2019 Plan is based on: 
CDD & Corporate Division capital improvement plans (CIPs) and
operating budgets discussed with the Commission on September
30, 2014. 
Aviation Division capital improvement plans (CIPs) and operating
budget discussed with the Commission on October 7, 2014. 
Seaport & Real Estate Division capital improvement plans (CIPs)
and operating budgets discussed with the Commission on October
14, 2014. 
2015 operating budgets are the basis of the 5-yr forecast of operating
cash flow available for capital funding. 

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Financial Policies 
The Plan is developed to adhere to the Port's financial
management policies for prudent cash reserves and
leverage 
Operating funds maintain a minimum of 9 months O&M: 
6 months operating and maintenance (O&M) expenses in the general
fund 
10 months O&M expenses in the airport development fund 
Maximum 75% of tax levy used to pay General Obligation bonds
debt service 
Net income provides Revenue bonds coverage: 
1.50x debt service for Seaport debt 
1.25x debt service for Airport debt 
Tax levy is sufficient to fund levy planned levy uses 
These policies have been in place for 10 years 
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Funding Sources 
Port capital funding is primarily derived from cash flow generated by
business operations 
Cash flow can pay costs directly or pay debt service for bond
funded assets 
The Draft Plan of Finance includes funding from: 
Net operating income (after payment of revenue bond debt service) 
Operating fund balances (above minimum requirement) 
Existing and future revenue bond proceeds 
Passenger Facility Charges 
Grants 
Tax levy 

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Aviation Capital Funding 2015-2019 
The Airport is a self-funding operation 
2015-2019
Aviation Funding Sources                      ($million)
Net income                              206.4 
Operating funds
(1)
Tax levy                                    4.5 
Grants                                  171.8 
Passenger Facility Charge                        183.4 
Customer Facility Charge                         - 
Existing revenue bond proceeds                     - 
Future bond proceeds                        1,153.3 
TOTAL                       1,719.4 
Total Aviation CIP                               1,719.4 
(1) Highline Schools noise insulation

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Seaport Funding Shortfall 
Seaport funding shortfall over 5 year period is ~$110 million. 
Funding shortfall is the result of the competitive pressures in the
container terminal business. Specific changes: 
Reduction of container revenues as a result of the terminal
leases amendments effective in 2013 (Most Favored Nations). 
Reduction of Terminal 5 revenues as a result of its planned
shutdown. 
Increased capital spending forecast associated with the
redevelopment of Terminal 5 to accommodate large ships, e.g.
EEE class. 


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Seaport Capital Funding 2015-2019 
Seaport can fund much of its capital program, but a funding shortfall is
forecast 
2015-2019
($million)
Seaport Funding Sources
Net income                              97.9 
Operating funds                            118.0
Grants                                  20.6 
(1)
Tax levy                                    1.0
Existing revenue bond proceeds                     3.7
Future revenue bond proceeds                    14.2 
TOTAL                        255.4
Total Seaport CIP                                365.1
Funding Shortfall                              (109.7) 
(1) Argo Yard Roadway capital spending (excludes public expense spending by tax levy)

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Real Estate Capital Funding 2015-2019 
Real Estate forecast assumes funding from net income and general fund
balance for certain self-sustaining businesses including recreational
marinas 
2015-2019
($million)
Real Estate Funding Sources
Tax levy                             47.0 
(1)
Net Income and General Fund Balance         17.1 
(1)
ADF Fund Balance                     1.5
Existing revenue bond proceeds               0.6
TOTAL                    66.2 
Total Real Estate CIP                             66.2 
(1) Includes funding from Seaport & Aviation division operating funds for allocated
Pier 69 capital spending


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Corporate Capital Funding 2015-2019 
Primarily technology investments and small capital. Spending is allocated
to the operating divisions and cash funded. 
2015-2019
($million)
Corporate Funding Sources
Airport                                   33.7 
Seaport                                   7.8
Real Estate                                    2.2
TOTAL                        43.7 
Total Corporate CIP                               43.7 


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Revenue Bond Debt Service Coverage 
2015-2019 Port-Wide Forecast 
Revenue Bond Debt Service Coverage 
7.0
5.90 
Income Available/revenue debt service  6.0                              5.45 
5.10 
5.0                                                         4.65 
4.15 
4.0
3.0
1.54                                      1.43           1.45 
1.42          1.39 
2.0
1.0
0.0
2015        2016        2017        2018        2019

First Lien               All Revenue Bond Debt


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Current Bond Ratings 
Rating Agency
A solid capital funding
Fitch  Moody's  S&P
plan is critical to the
General obligation bonds            AAA   Aa1   AAA
Port's investors, rating
First lien revenue bonds              AA    Aa2    AA-
agencies and credit
Intermediate lien revenue bonds        A+     A1    A+
providers 
Subordinate lien revenue bonds         A     A2     A
Passenger Facility Charge revenue bonds   A     A1    A+
Fuel Hydrant Special Facility bonds             A2     A-

Noted Credit Strengths: 
Diverse asset and revenue base 
Airport's market position and enplanement levels 
Solid coverage and liquidity levels 
Conservative debt structure 
Pro-active Port Commission and deep and experienced staff 
Vibrant and resilient area economy 
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2015 Planned Finance Activity 
G.O. bonds to fund $120 million of the Port's contribution to the SR99
project due May 1, 2015 
Airport bond issue to fund project spending 
$400 - $500 million 
First new money issuance since 2010 
Monitor existing debt for refunding opportunities 
2005 Intermediate Lien Revenue bonds 
Funded Airport projects 
Callable in March 2015 and currently show savings 
Evaluate options for extending and/or replacing letters of credit (LOCs)
expiring in 2015/2016 
LOCs provide credit and liquidity enhancement for the Port's
variable rate debt, resulting in lower cost of capital 

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Appendix: Revenue Bond Coverage Calculation 
Calculation of coverage on all     $ million                2015 Forecast
revenue bonds 
Net Operating Income                         220.1 
Management tool 
Adjustments for non-pledged revenues and non-ops        (7.6)
Not a legal requirement          Pledged net revenues                 212.5 
Operating divisions meet their
management coverage        Tax Levy available to off-set operating expenses     40.1
Available for debt service                          252.6 
targets 
Tax levy after G.O. debt        First Lien                   60.9
service can legally be used to     Intermediate Lien                 134.6 
pay operating expenses        Subordinate Lien                22.5
Total Revenue Bond Debt Service                 218.0 
regardless of how the levy is
actually used                 PFC & CFC applied to pay debt service         (54.1)
PFCs and CFCs are used to     Net Revenue Bond Debt Service          163.9 
pay revenue bond debt
Total Revenue Bond Coverage                    1.54
service reducing the debt
service paid from revenue 

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