Item No: 8c_supp 
Meeting Date: November 27, 2018 
Port of Seattle 
2019 Budget Reading & Final Adoption 
Commission Meeting 
November 27, 2018 

1

Outline 
2019 Operating Budget 
2019 Comprehensive Operating & Non-Operating Budget 
2019-2023 Capital Improvement Plan (CIP) 
2019 Staffing Summary 
2019 Sources and Uses of Funds 
2019 Proposed Tax Levy 
Remaining 2019 Budget Schedule 

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2019 Key Initiatives 
Serve regional demand and maintain our global gateway.



Serve regional demand       Continue to improve         Support Cruise passenger        Build capabilities through
for air service at Sea-Tac          safety & security                  growth                                process improvement 
Support the airport           Continue to improve          Advance real estate              Strengthen the Port's
capital improvement           customer service               development projects             Centers of Expertise
program 
Serving increased demand is a key budget driver 
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2019 Key Initiatives 
Create equitable opportunities throughout the region and invest in healthy communities
and environment. 


Diversity in Contracting     Workforce development        EPA Grant for work with        Promote economic
and WMBE              Continue internship program    near-Port communities         development for the region 
Equity Program              and expand career            Energy and Sustainability      Expand tourism
Priority Hire                   connected learning               grants                            opportunities 
Expand stakeholder        Supporting Fair Works         Sustainable Aviation
engagement                Center at the Airport           Fuels 
Budget resources support community priorities 
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2019 Budget Highlights 
Operating revenues are budgeted at $753.3M, $82.8M or 12.3%
higher than 2018 budget, and $67.7M or 9.9% above 2018 forecast 
Operating expenses are budgeted at $453.9M, $31.0M or 7.3%
increase from 2018 budget, and $34.4M or 8.2% above 2018 forecast 
Net Operating Income is budgeted at $299.4M, $51.8M or 20.9%
above 2018 budget, and $33.2M or 12.5% above 2018 forecast 
The 2019 capital budget is $1.0 billion and the 5-year capital
spending plan is over $3.1 billion 
The proposed tax levy for 2019 is $74.2M 
The 2019 budget reflects the Port's growth and continued investments for the region 
5

Additional Budget Change 
As noted in the first budget reading, a Environmental Program
Manager position was approved for Public Affairs after we submitted
the briefing package. 
This is a limited duration hire (for one year and nine months) to
support the Airport Community Ecology (ACE) Fund program and near-
Port Environmental Justice (EJ) communities stakeholder
engagement. 
For the 2018 new hire, the total budget is $137K for 2019. 

Additional change made to the budget 
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2019 Operating Budget - Port wide 
2016     2017      2018      2018      2019    Budget Change  Budget vs Forecast
($ in '000s)                           Actual     Actual     Budget    Forecast     Budget          $ %            $ %
Operating Revenues              598,467   632,031   670,479   685,592   753,255   82,776   12.3%     67,663    9.9%
Operating Expenses              325,285   372,982    422,885    419,417    453,861   30,976    7.3%     34,444    8.2%
Net Operating Income            273,182   259,049    247,594    266,175    299,395   51,800   20.9%     33,220   12.5%

A record $753M of operating revenues for 2019 
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2019 Comprehensive Budget 
2017       2018       2018       2019       Budget Change
($ in 000s)                             Actual     Budget    Forecast     Budget       $ %                            Explanations
Revenues
1. Aeronautical Revenues (Net)          264,114     301,082    303,769     365,604     64,522    21.4%    Cost recovery under SLOA IV.
2. Other Operating Revenues            367,917     369,398    381,823     387,651     18,254    4.9%     Higher revenue from the Airport, Maritime & EDD businesses.
3. Tax Levy                           71,702      72,000     72,000      74,160       2,160    3.0%     Increased by 3% in 2019.
4. PFCs                               88,389      91,787     93,095      95,185       3,398    3.7%     Higher enplanement forecast for 2019.
5. CFCs                               25,790      22,161     22,161      23,482       1,321    6.0%     Increase due to more for debt service cost.
6. Fuel Hydrant                         7,000       7,023      7,023       7,022         (2)    0.0%     Essentially the same as 2018.
7. Non-Capital Grants and Donations       6,705       5,504      3,000       2,655     (2,849)   -51.8%    Less state grant in 2019.
8. Capital Contributions                  30,112      41,379     41,379      49,345       7,966   19.3%    More TSA grant for the Checked Baggage Screen Project.
9. Interest Income                      12,174      15,713     25,670      30,903     15,190    96.7%    Slight increase in rates and higher cash balances.
Total                              873,902     926,047    949,920   1,036,007    109,961   11.9%
Expenses
1. O&M Expense                      372,982     422,885    419,417     453,861     30,976    7.3%     New budget initiatives and average pay increase.
2. Depreciation                        165,021     163,309    163,309     168,676      5,367    3.3%     More new assets come into service in 2019.
3. Revenue Bond Interest Expense        97,748     122,544    105,000     129,429      6,886    5.6%     More bond issuance assumed in 2019 increased interest expense.
4. GO Bond Interest Expense             13,891      13,501     13,501      12,689       (812)   -6.0%    Decreased debt service on GO bonds through amortization.
5. PFC Bond Interest Expense             4,931       4,437      4,437       3,606       (831)   -18.7%    Decreased debt service on PFC bonds through amortization.
6. Non-Op Environmental Expense         4,464       2,250     40,147       5,000      2,750   122.2%    Revise costs estimates for ERL balance and superfund sites.
7. Public Expense                        4,588      10,794     11,200      21,009     10,215    94.6%    Safe & Swift, Seattle Heavy Haul, Vanderlande Screening Lanes.
8. Other Non-Op Rev/Expense            10,441         473      1,200       1,415        942   199.4%
Total                              674,066     740,193    758,212     795,685     55,492    7.5%
Revenues over Expenses            199,836     185,854    191,709     240,322     54,468   29.3%
A strong financial position for the Port in 2019 
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Capital Plan Summary 
Capital Plan Summary by Division 
$ in 000's                       2018 Fcst    2019       2020      2021      2022      2023     2019-2023
Aviation                          574,425    935,454   576,576   515,061   394,108   278,868    2,700,067 
Maritime                         28,638     33,455    70,415   149,853    12,713    14,936      281,372
Economic Development          3,777     8,221   29,796   21,350    3,960    3,830      67,157
Stormwater Utility                   1,913       1,800     2,550     2,319     2,150     2,150        10,969
Central Services and Other       11,848     22,507    10,917    11,872    11,740    33,813       90,849
Total                          620,601  1,001,437   690,254   700,455   424,671   333,597    3,150,414

Capital projects have been prioritized by staff. 
The capital plan does not include Port share of the NWSA capital spending between 2019 and 2023. 
The Port continues to invest in the region with a 5-year capital plan of over $3 billion 
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FTE Summary 
Central
Aviation Maritime   Econ Dev.    Services      Total
2018 Approved FTE's            1,040.4            171.0             36.0           907.1         2,154.5 
Mid Year Approval                  8.0 -              1.0            13.0            22.0 
Eliminated - -      (2.0)      (1.5)     (3.5) 
Net Transfers                        3.0            1.0 -             (4.0)             - 
Adjusted 2018 FTE's (note 1)        1,051.4              172.0               35.0             914.6           2,173.0 
2019 Budget
Eliminated -     (1.0) -     (0.8)     (1.8) 
Transfer -    (1.0) -     1.0    - 
New FTE's (note 2)                 54.4             3.0              1.0            25.5            83.9 
Total 2019 Changes                   54.4             1.0             1.0            25.8            82.1 
Proposed 2019 FTE's            1,105.8            173.0             36.0           940.4         2,255.1 
Notes:
1) Includes 1.0 FTE for Stormwater Utility in Maritime Division.
2) Includes 1.0 new FTE for Stormwater Utility in Maritime Division.
FTEs driven by Commission priorities and growth initiatives 
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Sources of Funds 
Rental Car Customer    Fuel Hydrant
Passenger Facility
Facility Charges          Receipts 
Charges 
1.5%              0.5% 
6.1% 
Other Receipts 
Tax Levy                                              0.2% 
4.8% 
82% of funding
Grants and Capital
Contributions                                                                                                        sources come from
3.3%                                                                                               bond proceeds and
Operating Revenues                                    operating income. 
48.3%                                      The tax levy makes
Proceeds from Bond                                                                up less than 5% of
Issues 
33.4%                                                                   the funding sources
in 2019. 


Interest Receipts 
2.0%           Total Sources: $1,559.2M 
The Port has diversified funding sources 
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Uses of Funds 
Operating Expenses 
23.4% 
Plan to spend more
Capital Expenditures                        Bond Redemptions                       than half of our
51.6%                                9.8%                           funds on capital
Interest Payments                                 projects in 2019. 
9.5%                                  Operating expenses
are less than a
quarter of total
expenditures in
2019. 

Other Expenses 
Payment to NWSA                              0.5% 
for Capital                     Public Expense 
Expenditures                        1.1%                Total Uses: $1,941.9M 
4.2% 
Capital spending comprises more than half of Port expenditures 
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2010-2019 Tax Levy & Millage Rate 



The Port has gradually reduced the tax levy amount from 2010 to 2018 
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Actual vs. Maximum Allowable Levy 



The Port has forgone $521M in tax revenue since 1991 
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Remaining Budget Schedule 

File Statutory Budget with King County         Dec. 3, 2018 
Release the 2019 Final Budget Document       Dec. 14, 2018 


Statutory budget to be filed with the County on December 3 
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Port of Seattle 
2019 Budget Reading & Final Adoption 
Commission Meeting 
November 27, 2018 

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