Item No. 7d_supp 
Date:   Sept 30, 2014 

Corporate 
2015 Preliminary Budget
Briefing 
September 30, 2014

2015 Corporate Budget Overview 
Continued focus on managing Corporate cost growth 
'  Overall increase of 0.8% vs. 2014 budget 
'  Adjusting for budget transfers to other divisions and one-time
items in the 2014 budget, baseline budget increase is 2.3%. 
'  New budget additions for 2015 total $501K. 
Net reduction of 0.3 FTEs 
Key Expense Drivers: 
'  Baseline payroll increases 
'  Payroll increases partially offset by $709K one-time items in the
2014 budget. 


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2015 Corporate Budget Summary 
Description                       Amount  %   Notes
($ in '000)
2015 Preliminary Budget                  81,267
2014 Approved Budget                 80,637
Increase from 2014 Approved Budget          630  0.8%
Adjusted for Budget Transfers               549  0.7% PLA Group & 1.0 FTE from PA
Adjusted for One-time Items                 709  0.9% Exculde the one-time items in the 2014 budget
Increase from Baseline                   1,889  2.3%




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2015 New Budget Additions 
No. Dept       Description                              Amount
1 HR&D      OD/Metrics Analyst                          95,376
2 HR&D      Sr. Total Comp Analyst                       109,880
3 F&B       Financial Analyst I (6 months)                    57,068
4 AFR       Critical Year-end Workload Coverage                20,000
5 AFR       Billing Invoices/Statements Mailing Service  Centrally Budget   28,600
6 Internal Audit  Contracted Services for Construction Auditing Program       60,000
7 Internal Audit  Software                                15,000
8 Internal Audit  Peer Review by Association of Local Government Auditors     15,000
9 Contingency   Increase in Portwide Contingency                  100,000
TOTAL                         500,924



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2015 Corporate Budget By Expense Type 
2014   2015  '15-'14 Bud Chg
($ in 000's)                   Budget  Budget      $ %            Explanations
Payroll Expenses
Total Payroll Expenses            59,992  61,112   1,120    1.9% New FTEs and pay & benefits increases
Non-Payroll Expenses
Equipment Expense              1,216   1,118    (98)   -8.1% Purchases for Airport Jobs in 2014 budget
Supplies & Stock                 551    453    (99)  -17.9% Reduced office and other supplies
Outside Services                11,326  11,215   (111)   -1.0% Removal of EIS and Disparity Study
Travel & Other Employee Expense     2,653   2,603    (50)   -1.9%
Promotional Expense              466    346   (119)  -25.6% Moved Int'l Tourism Promo to Outside Svcs
Telecommunications              642    628    (14)   -2.2%
Insurance Expense               2,300   2,350     50    2.2% Higher insurance cost expected for 2015
Contingencies                   450    550    100   22.2% Related to implementation of Res. 3694
Other                       1,040    892   (148)  -14.2%
Total Non-Payroll Expenses       20,645  20,155   (490)   -2.4%
TOTAL             80,637  81,267   630  0.8%


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2015 Corporate Budget By Department 
2013    2014    2014    2015  Budget Change
(in $ 000's)                         Actual    Budget   Forecast    Budget       $ %
REVENUES
Total Operating Revenues             479     155     269     340    185 119.1%
EXPENSES
Executive                       1,728     1,818     1,818     1,798     -19   -1.1%
Commission                   1,013    1,645    1,645    1,565    -80   -4.9%
Legal                          3,545     3,264     3,141     3,156    -108   -3.3%
Risk Management                 2,901    3,173    3,138    3,249     77   2.4%
Health & Safety                    1,078     1,190     1,185     1,190      0    0.0%
Public Affairs                       5,890     6,069     5,946     5,937     -132   -2.2%
Human Resources & Development        5,259    5,655    5,513    5,958    303   5.4%
Labor Relations                     1,151     1,319     1,282     1,024    -295  -22.3%
Information & Communications Tech.      20,323    20,850    20,850    21,435     585   2.8%
Finance & Budget                  1,543     1,856     1,848     1,713    -143   -7.7%
Accounting & Financial Reporting         5,724     7,081     6,805     7,350     269    3.8%
Internal Audit                       1,201     1,422     1,500     1,552     131    9.2%
Office of Social Responsibility            1,644     2,187     2,291     1,910     -278  -12.7%
Contingency                       266      450      250      550     100   22.2%
Police                          22,458    22,658    22,474    22,879     221    1.0%
Total Operating Expenses          75,731    80,637    79,686    81,267    630   0.8%

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2015 Corporate FTE Summary 
FTE's
2014 Approved Budget              453.4
Changes in 2014:
Mid-Year Approvals                 4.1
Eliminated                        -4.6
Internal Transfer to Aviation              -1.0
2014 Baseline                      451.9
2015 Budget Changes:
Eliminated                        -2.0
Internal Transfers                     -3.5
Propposed New FTEs               5.2
Change in FTEs for 2015               -0.3
Proposed FTEs for 2015              451.6


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Potential Budget Additions 
Office of Social Responsibility and Public Affairs have requested
funding for expansion of Workforce Development and Tourism
programs in line with Century Agenda strategies 
These are not currently included in the Preliminary Budget beyond
baseline amounts 
Internal Audit has requested an additional FTE for a Construction
Auditor. The Preliminary Budget assumes $60K in Outside Services
in lieu of hiring an FTE in 2015funding the full FTE would require
an additional $43K 
'  This is subject to Audit Committee review/recommendation 


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Proposed Expansion of Tourism and Workforce
Development Programs 
Tourism 
$50K - Provide grant funding to community applicants to promote
statewide tourism 
$500K  Expand outreach in existing and new international markets;
develop cruise workshop for local businesses doing business with the
cruise industry 
$75K  Contribution to Washington Tourism Alliance 
Workforce Development 
$1.7 million  First year of multi-year contract for expanded workforce
development program in the Aviation, Maritime and Construction sectors 
$34K  Expanded internships and other internal Port programs 


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Program Funding Considerations 
Proposed program expansion
represents significant increases
Tourism               ($ in '000)
to baseline budgets 
2015 Baseline Budget      981
Staff recommends funding both
Additional Request       625
programs, including baseline,
Total            1,606       with the Port's Tax Levy 
Workforce Development                  Reduces allocations to
2015 Baseline Budget      767         operating divisions 
Additional Request      1,692         Mitigates concerns
Total            2,459          regarding airport revenue
diversion 
Broad community
benefitsappropriate for
levy funding 

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Capital Development Division 
2015 Preliminary Budget
Briefing 
September 30, 2014

Priority CDD Goals 
Deliver projects to operating division customers on time, within
budget, meeting agreed scope, and with minimal and mutuallyagreed
impacts on operations 
Support divisions beyond projects: including budget plan
development; business planning; asset management and reporting;
community outreach; negotiations; and technical support and
assistance. 
Provide contracting services. 
Be prepared for emergencies. 
Develop the talent, capabilities, motivation and well-being of CDD 
employees. 
Keep Port staff and contractor personnel working safely. 

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CDD Budget Comparisons 
2014 YE 
2013 Actual    2014 Budget     Forecast     2015 Budget 
FTE                   274.3        285.1        289.1        300.1 
Total Salaries & Benefits   $29,415,599    $ 35,156,665    33,785,162    $ 37,868,837 
On-site consultants       $2,091,198    $ 6,268,910    4,914,393    $ 6,307,400 
Small Works Constr 
Contracts             $1,045,682     $ 744,750    740,983     $ 1,796,400 
Total Before Capital
Charges (+ Int. Trfs)       $ 35,698,726    $ 46,134,430   43,380,765    $ 50,612,167 
Sal/Wag to Capital      $ (13,591,527)   $ (17,027,657)   (16,785,062)   $ (17,866,998) 
Capital Projects
Overhead           $ (5,730,328)   $ (8,809,619)   (8,051,369)    $ (8,243,478) 
On-site consultants to
Capital               $ (1,908,658)    $ (3,297,039)    (3,153,325)    $ (6,307,400) 
Total Charges to Capital   $ (21,144,696)   $ (29,134,316)  (27,989,756)    $ (32,417,876)
Total Operating Expense   $ 14,554,030    $ 17,000,114   15,391,009     $ 18,194,21 

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CDD 2015 Operating Budget 
In 000 dollars       2013   2014    2014    2015      Budget
Actual  Budget  Forecast   Budget      Change 
$     % 
AVPMG         1,157   2,601    2,311    4,582  1,981   76.2 
CPO           3,351   3,608    3,281    3,119  (489)  (13.6) 
ENG           4,999   5,490    4,718    5,637   147   3.7 
PCS            3,390   3,310    3,532    3,609   299   9.0 
SPM            1,276   1,587    1,155     828  (759)  (47.8) 
CDD Admin         380    404     394     419    15   3.7 
Total         14,553  17,000   15,391   18,194  1,194    7.0 


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CDD 2015 New FTEs 
Dept.       Position       FTE   Budget    %              Notes 
Exp 
AVPMG  Capital PM I  ADR        1.0     $85,000  17%   Eff. 4/14. If not approved, on-site consultant
expense must be increased. 
AVPMG  Capital PM III  ADR       1.0     $145,000  17%   Eff. 4/14. If not approved, on-site consultant
expense must be increased. 
AVPMG  Program Controls Manager    1.0     $145,000  11%   Eff. 4/14. If not approved, on-site consultant
expense must be increased. 
AVPMG  Management Analyst       1.0     $110,000  30%   Eff. 4/14. If not approved, on-site consultant
expense must be increased. 
AVPMG  Senior Administrative      1.0     $65,000  5%    Eff. 4/14. If not approved, workload must be
Assistant                                       redistributed to current staff. 
AVPMG  AVPMG Cost Estimator      1.0     $105,000  11%   Eff. 4/14. If not approved, workload must be
redistributed to current staff. 
AVPMG  Cost Engineer #1         1.0     $81,000  11%   Eff. 4/14. If not approved, on-site consultant
expense must be increased. 
AVPMG  Cost Engineer #1         1.0     $81,000  11%   Provides a development opportunity for
students. 
CPO    Senior Contracts         1.0      $98,408  90%    Eff. 4/15. If not approved, increased workload
Administrator / CPI LEAN                         (from major capital program growth and
Specialist                                        increased demand for services) must be
redistributed to current staff, and will
negatively impact implementation of
Procurement Efficiency recommendations. 
ENG    ENG Asset, Facility &      1.0      $68,124  100%   Eff. 4/14. If not approved, operating costs
Financial Specialist                                increase, efficiency decreases, and potential
policy non-compliance may occur. 
Total                  10.0 

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CDD 2015 Expense Projects 
Division    Impact                    Projects 
Construction Logistics Expansion              S. 160th GT Lot Expansion - ERL 
Aviation         $5,268,311 
2014 AF facilities                          Activation 
Main Garage Fire Damage                   PLB Removal; eGSE Installation 
RAC Remediation                          Landside operations support 
TI Work: 2014 RCF Landside/AV Terminal        Domestic Piping Branch Replacement 
Air Cargo Road Safety Improvements           Signage 
South Link                               Arc Flash Study/Mitigation 
Dining/Retail Concession Development         NSAT Utilities Support PSE, CNN, etc. 
2014 Concessions Tenant                    RMM  Baggage Handling System 
Concessions Communication                 Fdr 101 Taps/Fire Station Elect-Training 
South Satellite Interior Renovations         Airfield pavement management system 
EXP-Vert Conv MTEE Maintenance           AV small jobs 
GC/CM Early Work Support                AV O&M 
Roof Replacement - ERL                     plus Capital Projects with Expense
Components 
T-5 Crane Sales                           North Argo Express Access Elem II 
Seaport          $378,390 
T-5 Maintenance Dredging                   EMWGS II 
T-18 Maintenance Dredging                  Viaduct project 
T-18 Remove IHI Cranes                     SP small jobs 
P91 E. Cruise Maintenance Dredging           SP O&M 
Argo Element III Gate 
Real Estate       $1,066,048   FT Net Shed code compliance         RE small jobs 
FT Net Sheds                            RE O&M 
AVPMG $1,874,000  CPO $502,060  ENG  $705,620
Total CDD       $6,712,749   PCS $3,507,500   SPM $123,569 

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