9c. 2018 Financial Performance report

Item No: 9c_attach 
Meeting Date: March 12, 2019 

PORT OF SEATTLE 

2018 FINANCIAL & PERFORMANCE REPORT 

AS OF DECEMBER 31, 2018

TABLE OF CONTENTS 

Page 
I.          Portwide Performance Report                                                  3-6 

II.         Aviation Division Report                                                        7-15 

III.       Maritime Division Report                                                      16-20 

IV.       Economic Development Division Report                                   21-24 

V.        Central Services Division Report                                         25-30 












2

I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/18 
EXECUTIVE SUMMARY 
Financial Summary 
The Port's operating results for 2018 were very strong  a record year for both the operating revenues and net
operating income. Total operating revenues were $689.4M, which is $18.9M above budget and $57.4M higher
than 2017. Excluding Aeronautical revenues, which are based on cost recovery, other operating revenues were
$398.1M, $28.7M above budget and $30.2M higher than the 2017 actuals primarily due to higher revenues from
Public Parking, Rental Cars, Airport Dining & Retail, Ground Transportation, Fishing Operations and Conference
& Event Centers. Total operating expenses were $397.6M, $25.2M below budget mainly due to staffing vacancies,
outside services and a $15.6M Washington State Department of Retirement Systems (DRS) Pension True-up
credit. Operating income before depreciation was $291.8M, $44.2M above budget and $32.7M higher than the
2017 actuals. The Port-wide capital spending is $617.7M for 2018, 70.6% of the 2018 budget. 
Operating Summary 
Sea-Tac Airport had a record year with 49.8 million passengers in 2018 and is now the 8th busiest U.S. airport by
passengers count. The total enplanement growth for 2018 was 6.2% compared to 2017. This number is comprised
of enplanement growth rate of 6.3% for domestic passengers and 5.8% for international passengers. The total
landed weight for 2018 was 6.8 % higher than 2017 while total air cargo metric tons were 1.5% higher than 2017. 
For the Maritime division, cruise passengers also reached a record of over 1.1 million in 2018, 4.0% higher than
2017. The occupancy rate at Shilshole Bay Marina increased to 96.4% compared to 94.9% in 2017. For the 
Economic Development division, Terminal 91 Industrial has remained at a 100% building occupancy for both
2018 and 2017. Building occupancies for Terminal 106, Central Harbor, and Marina Office and Retail have
remained relatively steady in 2018. 
Key Business Events 
The Port Commission approved funds to address the shortage of local construction workers and to broaden access
to training and jobs for underrepresented populations in the industry in 2018. The Port obtained Congressional
authorization for Seattle Harbor Deepening Project with the U.S. Army Corps of Engineers. The Port hosted an
event to celebrate the 10 year anniversary of the Port's Veteran Fellow Program. The Port is collaborating with
Puget Sound Restoration Fund and the Washington State Department of Natural Resources on a Blue Carbon
program to build habitat and a native oyster bed at the north end of Smith Cove in Seattle's Elliott Bay. The Port
also celebrated 20 years of serving the cruise industry with over one million revenue passengers two years in a
row. Additionally, the Port welcomed three international airlines to the Sea-Tac Airport and launched SEA Visitor
Pass pilot program that would allow visitors past security at the Airport; visitors can now sign up for a pass giving
them the opportunity to attend Airport events and enjoy other Airport amenities without having to buy an airline
ticket. In December, the Port Commission authorized the fourth annual round of funding for the Tourism
Marketing Support Program that provides matching funds to organizations in Washington State to promote
tourism. 
Major Capital Projects 
The Port celebrated the "Topping Off" ceremony for the International Arrivals Facility (IAF) as the final structural
roof beam was put in place. Additionally, IAF project design was submitted to the U.S. Green Building Council in
the last quarter of 2018. The IAF project is rapidly progressing and is scheduled to open in the fall of 2020.
Taxiway improvements for the Airport's longest runway (16L/34R) were completed nine days ahead of schedule;
this runway was closed in September 2018 and reopened end of November 2018. Several construction projects
were placed on closeouts including Concourse B Gate Improvements; Wi-Fi Enhancement for Concourses A, B, D
and South Satellite; Alternate Utility Facility; ACL and Service Facility (Restroom Renovation Enabling Phase 1);
T18 Storm Water Outfalls; South Satellite Communications Equipment Relocations; Dynamic Display Signs Zone
3, and Delta In-Flight Regulated Materials Support. Permits were received for the Terminal 5 Berth Modernization 
project and the Pier 69 solar project, and removal of North Harbor Crane is also in progress.

3

I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/18 
PORTWIDE FINANCIAL SUMMARY 
Fav (UnFav)      Incr (Decr)
2016     2017     2018     2018    Budget Variance Change from 2017
$ in 000's                               Actual     Actual     Actual    Budge t        $ %       $ %
Aeronautical Revenues                 244,235            264,114            291,268           301,082    (9,814)           -3.3%  27,154    10.3%
Airport Non-Aero Revenues            221,021            236,803            257,707           244,786    12,921      5.3%  20,904     8.8%
Other Port Operating Revenues          133,211            131,114            140,415            124,612    15,803     12.7%   9,301           7.1%
Total Operating Revenues           598,467           632,031           689,390          670,479   18,910     2.8%  57,359    9.1%
Total Operating Expenses               325,285            372,982            397,638           422,885    25,247      6.0%  24,656     6.6%
NOI before Depreciation            273,182   259,049   291,752   247,594   44,158    17.8%  32,703   12.6%
Depreciation                             164,336    165,021    164,362   163,309    (1,053)            -0.6%    (659)    -0.4%
NOI after Depreciation              108,846     94,028   127,390    84,285   43,105    51.1%  33,362   35.5%

MAJOR OPERATING REVENUES SUMMARY 
Fav (UnFav)      Incr (Decr)
2016      2017     2018     2018   Budget Variance Change from 2017
$ in 000's                                   Actual     Actual    Actual    Budge t       $ %        $ %
Aeronautical Revenues                     244,235   264,114    291,268   301,082    (9,814)  -3.3%   27,154          10.3%
Public Parking                               69,540    75,106     80,212    78,572     1,640    2.1%    5,106          6.8%
Rental Cars - Operations                     37,082     35,051     37,306    35,294     2,012    5.7%    2,255           6.4%
Rental Cars - Operating CFC                 12,122    10,641     16,263    15,563       700   4.5%    5,622         52.8%
Rental Cars - Total                           49,203     45,691     53,569    50,857     2,713    5.3%    7,878         17.2%
ADR & Terminal Leased Space             57,253    58,980    64,323    59,087    5,236   8.9%    5,343         9.1%
Ground Transportation                      12,803    15,684     18,772    16,884     1,888  11.2%    3,088         19.7%
Employee Parking                           9,329     9,617     10,269     9,457      813   8.6%     652        6.8%
Airport Commercial Properties                9,992    18,042     15,434    14,706       727   4.9%   (2,608)  -14.5%
Airport Utilities                               7,233      7,018      7,206      7,556      (350)  -4.6%      189         2.7%
Clubs and Lounges                           3,028     5,041      6,802     5,630     1,171  20.8%    1,761         34.9%
Cruise                                     15,422    17,596     18,880    18,150       730   4.0%    1,284          7.3%
Recreational Boating                        10,255    11,086     12,529    12,166       362   3.0%    1,443         13.0%
Fishing & Operations                         9,108      9,297      9,763     8,388     1,375  16.4%      465        5.0%
Grain                                     5,382     5,427      5,167     5,163        4   0.1%     (260)   -4.8%
Maritime Portfolio Management              10,255    10,787     11,305    11,169       136   1.2%      518        4.8%
Central Harbor Management                  6,920     8,634      9,018     8,951       66   0.7%     384        4.4%
Conference & Event Centers                  8,022     9,133     11,703     9,537     2,166  22.7%    2,570         28.1%
NWSA Distributable Revenue               61,584    54,925     55,992    46,647     9,345  20.0%    1,067         1.9%
Other                                        8,902      5,854      7,177     6,477       700  10.8%    1,324         22.6%
Total Operating Revenues (w/o Aero)     354,232   367,917    398,122   369,398    28,724   7.8%  30,205           8.2%
TOTAL                     598,467  632,031  689,390  670,479  18,910  2.8%  57,359       9.1%





4

I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/18 
MAJOR OPERATING EXPENSES SUMMARY 
Fav (UnFav)      Incr (Decr)
2016     2017    2018    2018  Budget Variance Change from 2017
$ in 000's                                Actual     Actual   Actual  Budge t       $ %      $ %
Salaries & Benefits                      102,873    112,837  127,575   135,982    8,407     6.2%   14,738            13.1%
Wages & Benefits                     99,917    108,041  108,381   122,544  14,163   11.6%     340      0.3%
Payroll to Capital Projects                  21,744      25,708   28,329    28,964      635     2.2%    2,621      10.2%
Equipment Expense                      7,106     11,118   10,622     8,212   (2,411)        -29.4%    (495)          -4.5%
Supplies & Stock                          8,792     10,238   10,781     8,800   (1,981)         -22.5%      542      5.3%
Outside Services                         70,116     83,603   99,885   112,292   12,407    11.0%   16,282            19.5%
Utilitie s                                     21,123      23,529   25,552    24,219   (1,334)           -5.5%    2,024       8.6%
Travel & Other Employee Expenses        4,200      4,767    4,848     6,398   1,550   24.2%      81         1.7%
Promotional Expenses                     1,178      1,408    1,956     2,341     385   16.4%     548     38.9%
Other Expenses                         25,118     36,483   31,911    28,045   (3,867)        -13.8%   (4,572)    -12.5%
Charges to Capital Projects              (36,880)    (44,750)  (52,203)   (54,910)   (2,707)           4.9%   (7,453)     16.7%
TOTAL                    325,285   372,982 397,638  422,885  25,247   6.0%  24,656         6.6%

The 2018 actuals are $24.7M higher than the 2017 actuals primarily due to the following: 
Payroll: $15.0M higher mainly due to the addition of new FTEs and pay for performance increase; partially offset by a
$15.6M DRS pension True-up credit. 
Outside Services: $16.3M higher largely due to more consultant expenses, more capital and expense projects, and some
capital to expense write-offs. 
Other Expenses: $4.6M lower due to environmental liability expenses ($4.0M). 
TOTAL OPERATING AND NON-OPERATING REVENUES AND EXPENSES 
Fav (UnFav)
2016     2017     2018     2018    Budget Variance
($ in 000's)                                 Actual      Actual     Actual     Budge t         $ %
Revenues
1. Operating Revenues                   598,467     632,031     689,390     670,479     18,910       2.8%
2. Tax Levy                                71,678       71,702       71,771      72,000       (229)     -0.3%
3. PFCs                                    85,570       88,389       94,070      91,787       2,283       2.5%
4. CFCs                                    24,715       25,790       21,802      22,161       (359)     -1.6%
5. Fuel Hydrant                              6,992        7,000        6,942       7,023         (82)     -1.2%
6. Non-Capital Grants & Donations         6,284        6,705        1,573       5,504      (3,931)           -71.4%
7. Capital Contributions                    18,108       30,112       43,650      41,379       2,271       5.5%
8. Interest Income                           8,448       12,174       26,287      15,713     10,573     67.3%
Total                               820,262             873,902             955,484            926,047    29,438             3.2%
Expe ns e s
1. O&M Expense                         325,285     372,982     397,638     422,885     25,247       6.0%
2. Depreciation                           164,336     165,021     164,362     163,309      (1,053)             -0.6%
3. Revenue Bond Interest Expense       105,567       97,748     100,432     122,544     22,111     18.0%
4. GO Bond Interest Expense               9,765       13,891       13,414      13,501          88       0.6%
5. PFC Bond Interest Expense              5,251        4,931        4,368       4,437          69       1.5%
6. Public Expense                           8,560        4,588        5,269      10,794       5,525     51.2%
7. Non-Op Environmental Expense           280        4,464       10,600       2,250      (8,350)          -371.1%
8. Other Non-Op Rev/Expense            12,087       10,441        3,217         473      (2,744)          -580.5%
Total                               631,131             674,066             699,299            740,193    40,893             5.5%
Special Item                        147,700          -       34,923       -       (34,923)     0.0%
Retro Adjustment to Net Position          -           -         2,736      -        (2,736)            0.0%
Increase In Net Position                 41,431            199,836             218,526            185,854    32,673            17.6%
5

I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/18 
Major Budget Variance Explanations: 
Non-Capital Grants & Donations: $3.9M lower than budget mainly due to less DOE grants. 
Interest Income: $10.6M higher than budget as budget did not include interest earnings on new bond proceeds. 
Revenue Bond Interest Expense: $22.1M favorable to budget mainly due to savings from new revenue bond and lower
cost of issuance than budgeted. 
Public Expense: $5.5M less than budget due to Safe & Swift and Heavy Haul did not take place as budgeted. 
Non-Op Environmental Expense: $8.4M higher than budget mainly due to Environmental Remediation Liabilities
increase for T91, Lower Duwamish Superfund, South Park Marina, EWW Superfund, T30 and T5. 
Special Item Expense: $34.9M higher than budget due to T25 NRD restoration project. 
KEY PERFORMANCE METRICS 
Fav (UnFav)       Incr (Decr)
2017   2018    2018   Budget Variance  Change from 2017
Actual  Actual  Budge t   Chg.      %       Chg.       %
Enplanements (in 000's)             23,416    24,894    24,654      240       1.0%    1,479       6.3%
Landed Weight (lbs. in 000's)        28,431    30,350    29,203     1,147             3.9%    1,919       6.8%
Passenger CPE (in $)               10.52          10.79          11.63     0.84      7.2%     0.27      2.6%
Grain Volume (metric tons in 000's    4,363     4,379     4,146            233       5.6%       16       0.4%
Cruise Passenger (in 000's)           1,072     1,115     1,081             34       3.2%       43       4.0%
Shilshole Bay Marina Occupancy    94.9%   96.4%    95.9%    0.5%      0.6%    1.5%      1.6% 
CAPITAL SPENDING RESULTS 
2017     2018    2018   Budget Variance
$ in 000's                             Actual     Actual   Budge t       $ %
Aviation                             294,497    579,135   795,883    216,748   27.2%
Maritime                            20,489     25,091    46,449     21,358   46.0%
Economic Development              3,739     2,066     6,099     4,033   66.1%
Central Services & Other (note 1)      5,798     11,456    26,779     15,323   57.2%
TOTAL               324,523  617,748 875,210  257,462 29.4%
Note:
(1) "Other" includes $1.7M Stormwater Utility capital projects.
PORTWIDE INVESTMENT PORTFOLIO 
During the fourth quarter of 2018, the investment portfolio earned 2.13% versus the benchmark's (the Bank of
America Merrill Lynch 1-3 Year US Treasury & Agency Index) 2.53%. Over the last twelve months the portfolio
and the benchmark have earned 1.86% and 2.54%, respectively. Since the Port became its own Treasurer in 2002,
the life-to-date earnings of the Port's portfolio and the benchmark are 2.46% and 1.83%, respectively




6

II.  AVIATION DIVISION PERFORMANCE REPORT 12/31/18 
FINANCIAL SUMMARY 
Fav (UnFav)           Incr (Decr)
2016      2017      2018       2018      Budget Variance      Change from 2017
$ in 000's                            Actual     Actual     Actual     Budget       $ %          $ %
Operating Revenues:
Gross Aeronautical Revenues             247,811           267,690           291,268            301,082     (9,814)    -3.3%        23,578     8.8%
SLOA III Incentive Straight Line Adj (1)       (3,576)     (3,576)         -  -           -     0.0%         3,576   -100.0%
Aeronautical Revenues                  244,235           264,114           291,268            301,082     (9,814)    -3.3%        27,154    10.3%
Non-Aeronautical Revenues               221,021           236,803           257,707            244,786     12,921     5.3%        20,904     8.8%
Total Operating Revenues               465,256    500,916    548,975     545,867      3,107     0.6%        48,058     9.6%
Total Operating Expense                 261,226           299,114           318,849            334,856     16,007     4.8%        19,735     6.6%
Net Operating Income                  204,030    201,802    230,126     211,011     19,114     9.1%        28,324    14.0%
Capital Expenditures                   153,887    293,785    579,135     796,200    217,065  27.3%         285,350  97.1%
(1) Annual non-cash amortization of $17.9M lease incentive related to the 5 year SLOA III agreement which ended in 2017.
Division Summary 2018 Actuals vs. 2018 Budget 
Net Operating Income for 2018 is $19.1M higher than budget (9.1% favorable) 
o   Operating Revenue is ($3.1M) higher than budget (0.6% favorable) primarily due to higher revenue in
Non-Aeronautical Revenues, driven by strong performance in Airport Dining & Retail despite unit
closures for lease transition, Rental Car, Public Parking, Port-owned Clubs, and Ground Transportation
which has continued strong growth in TNC activity.
o   Operating Expenses are $16.0M lower than budget (4.8% favorable) primarily due to a year-end pension
credit adjustment to the Airport $5.5M and savings from other divisions $19.7M which included the
airport's allocated share ($7.2M) of the year-end pension credit adjustment affecting other divisions,
partially offset by higher than anticipated Environmental Remediation Liability cost increase ($2.2M)
associated with remediation required for IAF & NSAT mega projects, and Capital to Expense write offs
($6.9M).
Division Summary 2018 Actuals vs. 2017 Actuals 
Net Operating Income for 2018 is $28.3M higher than prior year (14.0% favorable) 
o   Operating Revenue is $48.1M higher than prior year (9.6% favorable)  primarily due to higher
Aeronautical revenue of which $23.6M of the increase is driven by higher rate-based costs and lower
revenue sharing. Non-Aero revenue increased by $20.9M due to increased activities in the Landside
business, primarily in Airport Dining & Retail, Ground Transportation, and Clubs and Lounges. 
O   Operating Expenses are $19.7M higher than prior year (6.6% variance)  due to higher payroll of $10.9M
(net of the 2018 year end pension credit adjustment) due to staffing that increased between 2017 and 2018,
higher outside services expense of $6.6M which was primarily due to non-recurring expenses focused on
addressing strategic initiatives throughout the airport, and higher Capital to Expenses of $4M. These 2018
Total Operating Expenses are partially offset by the one-time amortization for prepaid frontage fees in
2017 of $3.6M. 





7

II.  AVIATION DIVISION PERFORMANCE REPORT 12/31/18 
A.  BUSINESS EVENTS 
Safety: Below targets: 
o   2018 Airfield Composite Safety Score of 12 vs. goal of 29 
o   2018 Occupational injury rate of 5.9 vs. goal of 4.61 
o   2018 days away severity rate of 90.84 vs. goal of 65.10 
Innovation & Efficiency: Achieved goal of at least 2 in each department. Highlights include: 
o   SEA Visitor Pass pilot program implemented in Q4 
o   Installed dynamic ticket counter signage in Zone 1. 
o   Completed Lean Lift for traffic congestion 
Asset Management: Completed asset management gap assessment in Q3. 
Social Responsibility: Mixed results: 
o   Achieved Disadvantaged Business Enterprise (DBE) share of total Airport Improvement Project (AIP)
funded construction contracts of 15.43% vs. goal of 8% 
o   Achieved ACDBE share of ADR gross sales of 19.9% vs. goal of 22% 
Customer Service: Below targets. Airport Service Quality scores below 2017 in all 6 categories.
Environment and Sustainability: 
o   SAF: Commission approved sustainable aviation fuel strategic plan in Q3 
o   Sound insulation: 20 homes not insulated, but gained FAA grant to fund work in 2019 
o   Stormwater: completed regional stormwater assessment in Q4. 
Financial Performance: Achieved both goals. 
o   2018 Non-aero NOI of $150 million vs. budget of $127 million 
o   2018 CPE of $10.79 vs. adjusted budget of $11.63 
Capital Project, Planning & SAMP:  Achieved most milestones: 
o   Completed SAMP near term projects scoping for Environmental Review in Q3 
o   IAF: Completed design, sterile corridor Pod A, structural steel, bridge foundations 
o   NSAT: on track to achieve opening of phase 1A in January 2019 
o   Baggage Optimization: Phase 1: completed 74% of construction; Phase 2 completed 90% of design 
o   SSAT Renovation: on hold 
o   Concourse D Hardstand Terminal: facility completed, activated and operational 
o   Restroom Upgrades: Phase 1 enabling work in construction 

B.  KEY PERFORMANCE METRICS 
% Change
2016           2017          2018       from 2017
Total Passengers (000's)
Domestic                                40,871          41,804        44,422      6.3%
International                               4,866           5,130         5,428       5.8%
Total                                     45,737          46,935        49,850       6.2%
Operations                             412,170         416,124       438,391      5.4%
Landed Weight (In Millions of lbs.)
Cargo                                    1,888           2,323         2,471      6.4%
All other                                  25,387          26,107        27,879       6.8%
Total                                     27,276          28,431        30,350       6.8%
Cargo - Metric Tons
Domestic freight                          194,754                 242,271              241,397              -0.4%
International freight                        114,350                 123,934              133,274              7.5%
Mail                                     57,326                59,651              57,644            -3.4%
Total                                    366,430         425,856       432,315       1.5%

8

II.  AVIATION DIVISION PERFORMANCE REPORT 12/31/18 
C.  Key Performance Measures 
Fav (UnFav)        Incr (Decr)
2016    2017     2018     2018   Budget Vairance   Change from 2017
Actual   Actual   Actual   Budge t     $ %        $ %
Key Performance Metrics
Cost per Enplanement (CPE)                  10.10         10.52      10.79     11.63     0.84     7.2%      0.26      2.5%
Non-Aeronautical NOI (in 000's)             128,727   133,101    149,959   126,607    23,352    18.4%    16,858      12.7%
Other Performance Metrics
O&M Cost per Enplanement          11.46      12.77   12.81   13.58   0.77   5.7%   0.03    0.3%
Non-Aero Revenue per Enplanement            9.70    10.11      10.35      9.93     0.42     4.3%      0.24      2.4%
Debt per Enplanement (in $)                    104      114        133      116      (17)       -14.8%        19      16.3%
Debt Service Coverage                        1.53     1.57       1.66      1.51      0.15    9.7%      0.08      5.3%
Days cash on hand (10 months = 304 days)       416      379        235      304       -69   -22.6%      (144)    -37.9%
Aeronautical Revenue Sharing ($ in 000's)     (37,395)  (42,311)    (36,863)          (35,799)   (1,065)    -3.0%     5,447      12.9%
Activity (in 000's)
Enplanements                              22,796    23,416     24,894    24,654            240     1.0%     1,479       6.3%
Key Performance Metrics  2018 Actual compared to 2018 Budget: 
Cost per Enplanement (CPE): 
o   Adjusted CPE Budget is 11.63 (as shown above) based on 40% Revenue Sharing per SLOA IV agreement
bringing the adjusted CPE to $0.84 favorable to budget. The 2018 Actual reflects 40% Revenue Sharing as
negotiated in the SLOA IV agreement, which was not known when the 2018 Budget was approved. 
o   Note: CPE $0.56 favorable to original budget of $11.35 - 2018 Budget assumed 50% Revenue Sharing.
o   CPE increase of $0.26 compared to prior year  due to increase in rate base costs and decrease in revenue
sharing percentage under SLOA IV. 
Non-Aero NOI: 
o   Non-Aero NOI 2018 Actual is $23.4M favorable to 2018 budget due primarily to increased Ground
Transportation activity, increased transactions in Public Parking, and stronger performance in Airport
Dining and Retail. 
o    Non-Aero NOI 2018 Actual is $16.9M higher than prior year due primarily to increased Ground
Transportation activity, increased transactions in Public Parking, and stronger performance in Airport
Dining and Retail. 








9

II.  AVIATION DIVISION PERFORMANCE REPORT 12/31/18 
D.  OPERATING RESULTS 
Division Summary 
Fav (UnFav)       Incr (Decr)
2016     2017      2018      2018    Budget Variance  Change from 2017
$ in 000's                                Actual    Actual     Actual     Budge t      $ %       $ %
Operating Revenues:
Gross Aeronautical Revenues (1)               247,811    267,690     291,268     301,082    (9,814)    -3.3%   23,578           8.8%
SLOA III Incentive Straight Line Adj (2)           (3,576)     (3,576)          -  -          -     0.0%    3,576   100.0%
Aeronautical Revenues                       244,235    264,114     291,268     301,082    (9,814)            27,154          10.3%
Non-Aeronautical Revenues                   221,021    236,803     257,707     244,786    12,921           5.3%   20,904           8.8%
Total Operating Revenues                 465,256   500,916    548,975    545,867    3,107     0.6%  48,058     9.6%
Operating Expenses:
Payroll                                    101,879    114,463     125,341     132,156     6,815     5.2%   10,878           9.5%
Outside Services                             37,863     41,055      47,638           52,532     4,895     9.3%    6,583    16.0%
Utilitie s                                     14,690     16,374      18,237           17,320     (918)         -5.3%    1,864    11.4%
Other Airport Expenses                       20,655     28,292      25,125           19,776    (5,349)   -27.0%   (3,168)   -11.2%
Total Airport Direct Charges               175,087   200,184    216,341    221,784    5,443     2.5%  16,157     8.1%
Environmental Remediation Liability               4,463           8,812            6,233      4,030         (2,203)   -54.7%   (2,579)   -29.3%
Capital to Expense                              129      2,856            6,891      -     (6,891)     0.0%    4,035   141.3%
Total Exceptions                            4,592    11,668     13,124      4,030   (9,094) -225.7%   1,456    12.5%
Total Airport Expenses                   179,679   211,852    229,465    225,814   (3,651)   -1.6%  17,613     8.3%
Police Costs                                 18,183     17,652      19,231           22,174     2,944    13.3%    1,579     8.9%
Capital Development                           9,319          14,701      12,607           23,092    10,485          45.4%   (2,094)   -14.2%
Other Central Services                        50,099     51,004      53,121           58,265     5,144     8.8%    2,117     4.1%
Maritime/Economic Development                3,946           3,904            4,425      5,511         1,086    19.7%     520    13.3%
Total Charges from Other Divisions          81,547    87,262     89,384    109,042   19,658    18.0%   2,122     2.4%
Total Operating Expense                  261,226   299,114    318,849    334,856   16,007     4.8%  19,735     6.6%
Net Operating Income                     204,030   201,802    230,126    211,011   19,114     9.1%  28,324    14.0%
CFC Surplus                                 (4,899)     (2,750)      (7,724)     (7,142)     (582)         -8.1%   (4,974)  -180.9%
Net Non-Operating Items in / out from ADF (3)      2,160           3,481            3,167      4,406         (1,239)   -28.1%     (314)         -9.0%
SLOA III Incentive Straight Line Adj             3,576           3,576               -  -          -     0.0%   (3,576)  -100.0%
Debt Service (4)                            (133,982)   (131,060)    (136,218)           (136,075)     (143)         0.1%   (5,159)    -3.9%
Adjusted Net Cash Flow                    70,885    75,050     89,351     72,200   17,150    23.8%  14,301    19.1%
(1) Aero revenues are net of revenue sharing.
(2) Annual non-cash amortization of $17.9M lease incentive related to the SLOA III agreement for the 5 year period from 2013-2017.
(3) Per SLOA III definition of Net Revenues.
(4) 2018 Budget debt service amount inadvertently understated by the $2.1M debt service exclusion adjustment which impacts Aero Rate Based Revenues only. Total 2018
Aeronautical debt service obligation is reflected in the 2018 Actual column.






10

II.  AVIATION DIVISION PERFORMANCE REPORT 12/31/18 
Operating Expenses  2018 Actuals compared to 2018 Budget: 
Total Operating Expenses are lower than the 2018 Budget by $16 million due to the net of the following: 
Aviation Direct Charges are lower than the 2018 Budget by $5.4 million due to the following: 
Positive Variance of $11.7M                                      Negative Variance of $6.3M
Payroll - vacancies & hiring delays                             $6.8M   Utilitie s                                         $0.9M
Year Pension Credit Adjustment                       5.5M            IWTP overflow event                    0.6M
Vacancies & hiring delays                           1.3M            Garbage disposal compact failures           0.3M
Outside Services                                          $4.9M   Other Aviation Expenses                            $5.4M
Delays in Environmental Assessments                   1.5M            Equipment Rental & General Expenses        1.2M
Delays of the On-Call Project Planning and EPM          0.5M            Maintenance Equipment & Supplies          1.4M
Delays in Prepaid Parking System, ACDBE Disparity Study  1.1M            All other Aviation Expense                 2.8M
Delays in AV Biofuels Partnership Fund & Carbon Initiatives 0.2M
All other Outside Services                           1.6M

Aviation Operating Expense Exceptions are higher than budget by $9.1 million due to the following: 
Positive Variance - no material variance                              Negative Variance of $9.1M
Environmental Remediation Liability                    $2.2M
IAF soil contamination increase          3.8M
NSAT asbestos increase               1.0M
Obligating events not expected until 2019   (2.6M)
Capital to Expense Write-Offs                        $6.9M
SSAT Renovation                       3.5M
Renewable CNG Busses                  0.4M
C3 Holdroom                          0.9M
Other                                2.1M

Operating Expense charges from Central Services and other divisions are lower than budget by $19.7 million
due to the following: 
Positive Variance of $19.7M                                       Negative Variance - none
Central Services savings                                     $2.3M
P olic e                                                  ($0.2M)
Maritime/Economic savings                                  $1.1M
CDD savings (projects delayed/deffered)                        $9.3M
Aviation PMG                                 5.8M
PCS                                   2.3M
Engineering                                   1.0M
Other CDD                                   0.2M
Year End Pension Credit Adjustment                           $7.2M
Central Services                               2.8M
P olic e                                       3.1M
CDD                              1.3M






11

II.  AVIATION DIVISION PERFORMANCE REPORT 12/31/18 
Operating Expenses  2018 Actuals compared to 2017 Actuals: 
Total Operating Expenses are higher than 2017 Actuals by $19.7 million due to the net of the following: 
Aviation Direct Charges are higher than 2017 Actuals by $16.2 million due to the following: 
Increase of $19.4M                                                Decrease of $3.2M
Payroll                                                   $10.9M  Other Aviation Expenses                         $3.2M
Increased Staffing                                  14.0M            One-time amortization frontage fees      3.3M
Year Pension Credit Adjustment                       (3.1M)           Litigated & Non-litigated damages       0.2M
Outside Services                                            $6.6M     All other Aviation Expenses            (0.3M)
Janitorial Contract started in 2017                       1.6M
SAMP and Advanced Planning                        1.0M
Utility Master Plan, Civil/Structural Standards, EPM         1.1M
SAMP Environrmental Assessment                     0.2M
Curbside Assistance/Wheelchair Valet, CONRAC Reimburs.  0.5M
Customer Service Contracts                           0.3M
All other Outside Services increases                     1.9M
Utilitie s                                                   $1.9M
Operating Expense Exceptions are higher than 2017 Actuals by $1.5M due to the following: 
Increase of $4.0M                                                 Decrease of $2.5M
Capital to Expense Write-Offs                                  $4.0M  Environmental Remediation Liability                 $2.5M
SSAT Renovation                                   3.5M            IAF Soils                           2.7M
Renewable CNG Busses                             0.4M            IAF Asbestos                      (1.3M)
C3 Holdroom                                      0.9M            NSAT Asbestos                     2.1M
Other                                           (0.8M)           Other                            (1.0M)


Operating Expense charges from Central Services and other divisions are higher than 2017 Actuals by $2.1
million due to the following: 
Increase of $2.1M                                                 Decrease - no material amount
Police                                                    $1.6M
Police Service                                     4.7M
2018 Year End Pension Credit Adjustment               (3.1M)
CDD                                      ($2.1M)
CDD Savings                                     (0.8M)
2018 Year End Pension Credit Adjustment               (1.3M)
Other Central Services                                       $2.1M
Other Central Services                               4.9M
2018 Year End Pension Credit Adjustment               (2.8M)
Maritime/Economic Development divisions                        $0.5M





12

II.  AVIATION DIVISION PERFORMANCE REPORT 12/31/18 
Aeronautical Business Unit Summary 
Fav (UnFav)       Incr (Decr)
2016     2017     2018     2018    Budget Variance  Change from 2017
$ in 000's                           Actual    Actual     Actual    Budge t      $ %        $ %
Revenues:
Movement Area                    94,725    108,638    116,703    125,422    (8,720)    -7.0%    8,064     7.4%
Apron Area                         14,028     16,771           15,627           15,979           (352)    -2.2%   (1,144)    -6.8%
Terminal Rents                      155,852            155,431    169,318    171,854    (2,536)    -1.5%   13,888      8.9%
Federal Inspection Services (FIS)       11,227     18,612            16,226            13,413           2,813     21.0%    (2,386)   -12.8%
Total Rate Base Revenues       275,832   299,452   317,874   326,668   (8,794)           -2.7%  18,422     6.2%
Commercial Area                     9,379     10,574           10,257           10,212             45     0.4%     (317)    -3.0%
Subtotal before Revenue Sharing  285,211   310,026   328,131   336,880   (8,749)           -2.6%  18,106     5.8%
Revenue Sharing                     (37,395)    (42,311)            (36,863)            (35,799)           (1,065)    -3.0%    5,447     12.9%
Other Prior Year Revenues                (5)           (26)              -  -          - 0.0%       26   100.0%
Total Aeronautical Revenues      247,811   267,690   291,268   301,082   (9,814)          -3.3%  23,578     8.8%
Total Aeronautical Expenses      168,932   195,414   211,101   216,931    5,830     2.7%  15,688     8.0%
Net Operating Income             78,879           72,276    80,167    84,151   (3,984)          -4.7%   7,891    10.9%
Debt Service (1)                      (89,130)    (86,564)            (91,673)            (90,323)           (1,350)    -1.5%   (5,109)    -5.9%
Net Cash Flow                  (10,251)          (14,288)   (11,506)    (6,173)  (5,333)         -86.4%   2,782    19.5%
(1) 2018 Budget debt service amount inadvertently understated by the $2.1M debt service exclusion adjustment which impacts Aero Rate Based Revenues
only. Total 2018 Aeronautical debt service obligation is reflected in the 2018 Actual column.
Airline Rate Base Cost Drivers 
Fav (UnFav)        Incr (Decr)
2016      2017      2018       2018     Budget Variance    Change from 2017
$ in 000's                         Actual    Actual     Actual      Budget       $ %        $ %
O&M                 165,427  192,188   206,076   210,433   (4,357)      -2.1%   13,888   7.2%
Debt Service Gross                 118,641    113,832     115,419     120,555     (5,135)         -4.3%      1,588    1.4%
Debt Service PFC Offset            (32,831)   (33,057)     (32,987)     (33,015)        28   -0.1%         70       -0.2%
Amortization                        28,215     29,654      32,371            32,373               (2)   0.0%      2,717    9.2%
Space Vacancy                      (2,638)    (2,264)      (2,132)      (2,650)       518      -19.5%       132    -5.8%
TSA Operating Grant and Other         (982)      (901)       (873)      (1,028)       155      -15.1%        28       -3.1%
Rate Base Revenues               275,832   299,452     317,874            326,668            (8,794)        -2.7%     18,422    6.2%
Commercial area                     9,379     10,574      10,257            10,212               45   0.4%       (317)        -3.0%
Total Aero Revenues              285,211   310,026     328,131            336,880            (8,749)         -2.6%     18,106    5.8%
(1) O&M, Debt Service Gross, and Amortization do not include commercial area costs or the international incentive expenses
Aeronautical  2018 Actuals vs. 2018 Budget 
Aeronautical net operating income is $4.0M lower than budget (4.7% unfavorable). 
o   Aeronautical revenues are $9.8M lower than budget (3.3% unfavorable)  primarily due to decreases in
Debt Service flowing through Rates in the Movement and Terminal Rents areas. 
o   Aeronautical operating expenses is $5.8M lower than budget (2.7% favorable) driven primarily by a yearend
pension credit adjustment with a favorable impact of $12.2M (of which $5.5M impacted the Aviation
division and $7.5M impacted other divisions). 
Aeronautical  2018 Actuals vs. 2017 Actuals 
Net Operating Income for 2018 is $7.9M higher than prior year (10.9% favorable) 
13

II.  AVIATION DIVISION PERFORMANCE REPORT 12/31/18 
o   Operating Revenue is $23.6M higher than prior year (8.8% favorable) due to higher rate-based costs to
support increased airline activity and lower revenue sharing due to reduction in revenue sharing percentage
(from 50% down to 40%) under new airline agreement. 
o   Operating Expenses are $15.7M higher than prior year (8.0% variance) due to higher airport direct
operating expenses to support increased airline activity and higher charges from other divisions. 
Non-Aero Business Unit Summary 
Fav (UnFav)        Incr (Decr)
2016       2017       2018       2018     Budget Variance    Change from 2017
$ in 000's                              Actual     Actual     Actual      Budget     $ %        $ %
Non-Aero Revenues
Rental Cars - Operations                     37,082           35,051           37,306     35,294     2,012     5.7%     2,255     6.4%
Rental Cars - Operating CFC                 12,122           10,641           16,263     15,563       700        4.5%     5,622    52.8%
Public Parking                             69,540           75,106           80,212     78,572     1,640     2.1%     5,106     6.8%
Ground Transportation                      12,803     15,684           18,772     16,884     1,888    11.2%     3,088    19.7%
Airport Dining & Retail & Leased Space        57,253     58,980           64,323     59,087     5,236     8.9%     5,343     9.1%
Commercial Properties                       9,992     18,042           15,434     14,706       727        4.9%     (2,608)   -14.5%
Utilities                                   7,233      7,018           7,206      7,556      (350)    -4.6%       189     2.7%
Employee Parking                           9,329      9,617          10,269      9,457       813        8.6%       652     6.8%
Clubs and Lounges                          3,028      5,041           6,802      5,630     1,171    20.8%     1,761    34.9%
Other                                     2,639      1,624           1,119      2,036      (917)   -45.0%      (505)   -31.1%
Total Non-Aero Revenues                 221,021    236,803    257,707    244,786    12,921    5.3%    20,904     8.8%
Total Non-Aero Expenses                   92,294    103,702    106,435    117,925    11,490    9.7%     2,733     2.6%
Net Operating Income                    128,727    133,101    151,271    126,861    24,411   19.2%    18,171    13.7%
Less: CFC (Surplus) / Deficit (1)               (4,899)     (2,750)     (7,724)     (7,142)      (582)    -8.1%     (4,974)  -180.9%
Adjusted Non-Aero NOI                   123,828    130,351    143,548    119,719    23,829   19.9%    13,197    10.1%
Debt Service (1)                           (43,984)    (44,495)    (44,545)    (45,752)     1,207     2.6%       (50)        -0.1%
Net Cash Flow                            79,844     85,856     99,002     73,967    25,035   33.8%    13,147    15.3%
(1) CFC excess and Debit service are forecasted/budgeted on an annual basis only. Thus, quarterly data is not available.
Non-Aeronautical  2018 Actuals vs. 2018 Budget 
Non-Aeronautical net operating income is $24.4M higher than budget (19.2% favorable). 
o   Non-Aeronautical revenues is $12.9M higher than budget (5.3% favorable): 
Airport Dining & Retail - favorable $5.2M reflects strong performance in Food and Beverage despite
transitions to new leases, Retail Sales growth driven by increased "grab'n'go" food offering, and
increased revenue from Advertising. 
Commercial Properties - favorable $0.7M due to earlier than anticipated occupancy of DMCBP Phase
II building. 
Utilities  unfavorable ($0.3M) due to reduced tenant billings while garbage program undergoes
process improvement planning. 
o   Non-Aeronautical operating expenses are $11.5M lower than budget (9.7% favorable)  primarily due to
lower than anticipated charges from other divisions due to AVPMG terminal project delays, and Non-Aero
share of year-end pension credit. 
Non-Aeronautical  2018 Actuals vs. 2017 Actuals 
Net Operating Income for 2018 is $18.2M higher than prior year (13.7% favorable) 
o   Operating Revenue is $20.9M higher than prior year (8.8% favorable) primarily due to increased Landside
business activity and strong performance in Airport Dining & Retail and Clubs & Lounges, which more
than offsets the year-over-year decrease ($5.3M) due to the one-time lump sum frontage fee
reimbursement received in Commercial Properties in 2017. 
o   Operating Expenses are $2.7M higher than prior year (2.6% variance) due to higher payroll costs related to
increase in staffing, higher outside services expense primarily due to non-recurring expenses focused on
addressing strategic initiatives throughout the airport, and higher charges from other divisions, partially
offset by higher pension credit in 2018.
14

II.  AVIATION DIVISION PERFORMANCE REPORT 12/31/18 
E.  CAPITAL RESULTS 
Capital Variance 
$ in 000's                                     2018          2018       Budget Variance
Description                         Actual      Budget       $ %
International Arrivals Facility (1)                        223,714        324,221    100,507   31.0%
ASL Conversion at Checkpoints (2)                    1,593        16,800     15,207   90.5%
NS NSAT Renov NSTS Lobbies (3)               169,018      140,738   (28,280)  -20.1%
N. Terminals Utilities Upgrade (4)                         417         8,200      7,783   94.9%
Add'l Baggage Makeup Space IAF (5)                1,187       15,998    14,811   92.6%
Additional STS Cars (6)                                    3         6,525      6,522   100.0%
2018 Taxiway Improvement Project (7)               30,495        36,250      5,755   15.9%
SSAT Infrastructure HVAC                         819        4,910     4,091   83.3%
Concourse D Hardstand Holdroom                 25,757       27,986     2,229   8.0%
Holdroom Seatings for Conc B& C                    1,115         6,950      5,835   84.0%
Terminal Security Enhancements                     1,888         5,925      4,037   68.1%
All Other                                            123,128       201,380     78,252   38.9%
Total Spending                        579,135             795,883          216,748   27.2%
(1)   Foundations and structural steel delayed and then proceeded at a slower pace than expected. 
(2)   $8.7M of capital budget deemed to be public expense as the equipment will be transferred to TSA. 1 of 3 lanes have been installed; remaining lanes
pushed out to Q4 2019. 
(3)   2018 Budget included a reclass of $8.7M to non-operating public expense for the non-Port owned equipment to be turned over to the TSA. When
Baseline was set in early 2018, Construction was lagging. Construction level of effort is now matching and exceeding initial expectations as schedule
end dates have not slipped. 
(4)   Early works construction cancelled and combined with main construction phase due to better coordination with adjacent projects. 
(5)   Foundations and structural steel delayed and then proceeded at a slower pace than expected. Additionally, a major payment (~$9M) scheduled for
Dec-18 was delayed one month by GMP negotiation and settlement and will apply in Jan-19. 
(6)   Project has been delayed until 2020. 
(7)   Favorable bids on the project. 










15

III. MARITIME DIVISION PERFORMANCE REPORT 12/31/18 
FINANCIAL SUMMARY 
Fav (UnFav)           Incr (Decr)
2016     2017     2018     2018     Budget Variance    Change from 2017
$ in 000's                     Actual     Actual     Actual    B udg e t         $ %        $ %
Total Revenues             50,810    54,183    57,575    55,053     2,522        5%     3,391        6%
Total Operating Expenses    40,384    42,164    43,252    49,578      6,326       13%     1,088        3%
Net Operating Income       10,426    12,020    14,323     5,475     8,848     162%     2,303      19%
Depreciation              17,351    17,410    18,022    17,868      (154)       -1%      612        4%
Net Income                 (6,924)    (5,390)    (3,699)   (12,394)     8,695      70%     1,691      31%
Capital Expenditures          5,746    20,489    25,091    46,449    21,358       46%     4,602       22%
Division Summary 2018 Actuals vs. 2018 Budget 
Operating Revenues $2,522K above budget due to favorable moorage revenue, and more cruise passengers. 
Operating Expenses $6,326K below budget from underspend in Cruise, Recreational Boating, Other Maritime,
and Central Services payroll. 
Net Operating Income $8,848K above budget. 
Capital spending for full year 2018 is $25.1 million or 54% of the approved budget of $46.4 million. 
Division Summary 2018 Actuals vs. 2017 Actuals 
Operating Revenues $3,391K above 2017 primarily due to higher tariff rates. 
Operating Expenses $1,088K greater than 2017 due primarily to increased maintenance wage rates, Cruise Port
Valet, and acquisition of Salmon Bay Marina. 
Net Operating Income is $2,303K higher than 2017. 
Net Operating Income before Depreciation by Business 
Fav (UnFav)          Incr (Decr)
2016     2017     2018     2018    Budget Variance   Change from 2017
$ in 000's                       Actual     Actual     Actual     B udg e t         $ %       $ %
Fishing & Operations            (3,149)     (1,451)     (1,586)     (3,299)     1,714       52%      (135)      -9%
Recreational Boating              1,016       1,305       2,262         505      1,756      347%       957       73%
Cruis e                            8,326       8,599       9,029       5,332     3,697       69%       430        5%
Bulk                            4,215       4,030       3,430       3,324       105        3%     (600)     -15%
Maritime Portfolio                  249         167       1,098         278       820     -295%       931      559%
All Other                          (232)       (630)         90        (666)      756      114%       720      114%
Total Maritime               10,426     12,020     14,323      5,475     8,848     162%    2,303      19%

A.  BUSINESS EVENTS 
Cruise  Record setting passenger counts at over 1.1M. Inaugural sailing of the Norwegian Bliss. Successful Port
Valet program with costs coming in well under budget. Continued profitability. 
Recreational Boating  Incorporated Salmon Bay Marina. Shilshole Bay Marina occupancy was 2% higher than
2017 due to process improvements reducing turnaround times. Third year in a row with zero injuries. 

16

III. MARITIME DIVISION PERFORMANCE REPORT 12/31/18 
Fishing and Commercial Operations  Christened the Global Provider, a new 126 foot tanker vessel at
Fishermen's Terminal. Doubled occupancy at Pier 34 dolphins and extended agreements at Pier 46 North with
WSDOT and Washington State Ferries. 
Maritime Portfolio Management Added new marina-wide Wi-Fi and completed Electric Vehicle Charging Pilot
Project at Shilshole Bay Marina. 
Stormwater Utility  Rehabilitated 6.4 miles of stormwater infrastructure and assessed 33.3 miles exceeding
target. Received confirmation from DOE on termination of Industrial SW permit, saving $32K annually. 

B.  KEY PERFORMANCE METRICS 
Grain Volume  Metric Tons in 000's 

700
600
500
2017 Actuals
400
300                                                                            2018 Budget
200                                                                            2018 Actuals
100
0
Jan   Feb   Mar   Apr  May   Jun   Jul   Aug   Sep   Oct   Nov  Dec

Cruise Passengers in 000's

300
250
200                                                                             2017 Actuals
150                                                                             2018 Budget
100                                                                             2018 Actuals
50
0
Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct   Nov   Dec




17

III. MARITIME DIVISION PERFORMANCE REPORT 12/31/18 
C.  OPERATING RESULTS 
Fav (UnFav)           Incr (Decr)
2016     2017     2018     2018     Budget Variance     Change from 2017
$ in 000's                            Actual     Actual     Actual    B udg e t        $ %        $ %
Fishing & Operations                    9,108      9,297      9,763      8,388      1,375       16%       465        5%
Recreational Boating                   10,255     11,086     12,529     12,166       362        3%      1,443       13%
Cruis e                                15,422     17,596     18,880     18,150       730        4%      1,284        7%
Bulk                                  5,382      5,427      5,167      5,163         4        0%      (260)       -5%
Maritime Portfolio Management          10,255     10,787     11,305     11,169       136        1%       518        5%
Other                                  388         (9)       (69)        17        (86)     -502%       (60)     -692%
Total Revenue                        50,810    54,183    57,575    55,053      2,522        5%     3,391        6%
Expenses
Fishing & Operations                  4,308      4,599      4,702      4,641        (61)       -1%       104        2%
Rec Boating                          3,164      3,813      3,688      4,595       907       20%      (126)       -3%
Cruis e                               2,600      2,674      2,677      4,748      2,071       44%         3        0%
Other Maritime                         781        462        259      1,399      1,140       81%      (203)      -44%
Maintenance Expenses                 9,900     10,420     11,416     11,261       (156)       -1%       996       10%
Portfolio Management                 3,367      3,507      3,726      3,750        23        1%       219        6%
Other ED Expenses                      420        665        621        833        212       25%       (44)       -7%
Total Maritime & EDD expenses     24,540    26,140    27,089    31,226      4,137       13%       949        4%
Enviromental & Sustainability           1,358      1,125      1,588      2,168       580       27%       463       41%
CDD Expenses                       1,010       748       823      1,212       389       32%        75       10%
Police Expenses                       3,921      3,756      4,041      4,209       168        4%       285        8%
Other Central Services                 9,300      9,869      9,564     10,641      1,077       10%      (305)       -3%
Aviation Division                       139        138        148        123        (24)      -20%        10        7%
Total Central Services & Aviation    15,728    15,635    16,163    18,352      2,189       12%       528        3%
Envir Remed Liability                    115        389         0         0         0        NA      (389)     -100%
Total Expense                        40,384    42,164    43,252    49,578      6,326       13%     1,088        3%
NOI Before Depreciation              10,426    12,020    14,323      5,475      8,848     162%     2,303       19%
Depreciation                           17,351     17,410     18,022     17,868       (154)       -1%       612        4%
NOI After Depreciation                (6,924)    (5,390)    (3,699)   (12,394)     8,695       70%     1,691       31%

2018 Actuals vs. Budget 
Operating Revenues were $2,522K higher than budget: 
o   Fishing and Operations $1,375K higher than budget due to better utilization of recreational boating at
Fishermen's Terminal while the fishing boats are at sea. 
o   Recreational boating $362K favorable to budget from faster turnaround of moorage slips resulting in a 2% 
increase in vacancy rates. 
o   Cruise revenue $730K above budget from higher passenger counts than budgeted. 
o   All other revenue nets to $55K 
Operating Expenses were $6,326K favorable than budget: 
o   Rec Boating $907K below budget due to open positions and general underspend. 
o   Cruise $2,071K lower than budget due to timing and savings of Port Valet, consulting, and marketing
programs. 
o   Other Maritime $1,140K lower than budget from Marketing open FTEs and Habitat expenses applied to
non-operations and capital. 
o   Environment and Sustainability $580K lower than budget due to vacant positions and capital/expense mix. 
o   Capital Development (CDD) $389K below budget due to fewer contractors than expected. 
o   Other Central Services $1,071K lower than budget primarily due to lower charges from IT $251K, Public
Affairs $148K, Human Resources $222K, Accounting $192K, Finance $74K, and Exec $143K. 
o   All other expenses net to $168K lower than budget. 
Net Operating Income was $8,848 above budget.
18

III. MARITIME DIVISION PERFORMANCE REPORT 12/31/18 
2018 Actuals vs. 2017 Actuals 
Operating Revenues were $3,391 higher than 2017 actual due to increased moorage rates, improved occupancy
at Shilshole Bay Marina, increased cruise passenger fees, and longer than anticipated occupancy by fishing
vessels at Terminal 91. 
Operating Expenses were $1,088K higher than 2017 actual: 
o   Marine Maintenance $996K greater than 2017 due to increased wages and increased project completion. 
o   Portfolio Management $219K greater than 2017 due to higher utility expense. 
o   Environmental and Sustainability $463K higher than 2017 due to migration of costs from habitat business. 
o   Police expenses increased $285K related to new officers at the airport and associated allocations. 
o   Other Central Services ($305K) decrease from 2017 related to lower allocation rate. 
o   Environmental Remediation ($389K) below 2017. 
o   All other Expenses net to $181K above 2017. 
Net Operating Income was $2,303K above 2017 actual. 

D.  CAPITAL RESULTS 
2018      2018     Budget Variance
$ in 000's                                      Actual     Budge t        $ %
Salmon Bay Marina ACQ                 15,724     15,804        80        1%
SBM Restrms/Service Bldgs Rep              221      7,162      6,941       97%
FT Gateway Building                          868      2,700      1,832       68%
P91 South End Fender                       2,056      2,202        146         7%
Maritime Fleet Replacement                  1,422      2,158        736        34%
Contingency Renewal & Replace.                0      2,000      2,000      100%
SBM Paving                             136     1,673     1,537       92%
Cruise Terminal Tenant Improv                 343      1,531      1,188        78%
Salmon Bay Marina Uplands                    46      1,505      1,459       97%
FT Docs 3,4,5 Fixed Pie                         174       1,424       1,250        88%
Restoration                                     109       1,140       1,031        90%
All Other Projects                              3,992       7,150       3,158        44%
Total Maritime                               25,091     46,449     21,358        46%
Comments on Key Projects: 
In 2018, Maritime spent 54% of the annual approved capital budget. 





19

III. MARITIME DIVISION PERFORMANCE REPORT 12/31/18 
Projects with significant changes in spending were: 
SBM Restrooms/Service Buildings Rep  Construction Delay, scope of work change. 
FT Gateway Building  Change of scope. 
Contingency Renewal and Replace - $850k used for Portwide Radio System Upgrade. 
SBM Paving  Construction Delay. Moved to Q2 2019. 
Cruise Terminal Tenant Improvements  moved to expense. 
FT Docs 3,4,5 Fixed Pie  Design phase extended. 
Restoration  Project delayed until 2020. 

















20

IV. ECONOMIC DEVELOPMENT DIVISION PERFORMANCE REPORT 12/31/18 
FINANCIAL SUMMARY 
Fav (UnFav)           Incr (Decr)
2016     2017     2018     2018     Budget Variance    Change from 2017
$ in 000's                     Actual     Actual     Actual    B udg e t         $ %        $ %
Total Revenues             15,902    17,791    20,705    18,522     2,182      12%     2,914      16%
Total Operating Expenses    20,983    25,396    27,651    28,751      1,101        4%     2,255        9%
Net Operating Income       (5,080)    (7,605)    (6,946)   (10,229)     3,283      32%      659       9%
Depreciation               3,682     3,863     3,992     4,156       164        4%      129        3%
Net Income                 (8,763)   (11,469)   (10,938)   (14,385)     3,447      24%      531       5%
Capital Expenditures          4,757      3,739      2,066      6,099      4,033       66%    (1,673)     -45%
Division Summary 2018 Actuals vs. 2018 Budget 
Operating Revenues $2,182K above budget primarily due to higher than expected Conference and Event
Center activity. 
Operating Expenses $1,101K below budget primarily due to EDD Initiative programs. 
Net Operating Income $3,283K above budget. 
Capital spending $2.01M or 34% of the approved budget of $6.1M. 
Division Summary 2018 Actuals vs. 2017 Actuals 
Operating Revenues are expected to be $2,914K above 2017 primarily due to stronger sales at Bell Harbor
Conference Center. 
Operating Expenses $2,255K greater than 2017 primarily due to increased volumes at Conference and Event
Centers, EDD Initiatives, and Maintenance. 
Net Operating Income $659K greater than 2017. 
Net Operating Income before Depreciation by Business 
Fav (UnFav)          Incr (Decr)
2016     2017     2018     2018    Budget Variance   Change from 2017
$ in 000's                       Actual     Actual     Actual     B udg e t         $ %       $ %
Portfolio Management           (3,925)     (5,236)     (3,741)     (4,308)      567       13%     1,494       29%
Conference & Event Centers        538        762         45      (1,200)     1,245      104%      (716)      94%
Tourism                      (1,117)     (1,265)     (1,439)     (1,486)      47       3%     (174)     -14%
Workforce Development          (517)     (1,113)      (973)     (2,275)    1,303      57%      140      13%
EDD Grants                      (22)      (753)      (838)      (960)      122      13%      (85)      NA
Env Grants/Remed Liab/ERC        (37)        (1)         0         (0)        0     100%        1     -100%
Total Econ Dev                (5,080)     (7,605)     (6,946)    (10,229)    3,283      32%      659           9%




21

IV. ECONOMIC DEVELOPMENT DIVISION PERFORMANCE REPORT 12/31/18 
E.  BUSINESS EVENTS 
Workforce Development  Participated in Joint RFP for construction worker training and retention services. The
first Port-funded Ironworkers pre-apprenticeship cohort graduated. Partnered with the Regional Public Owners
group to complete a construction workforce supply demand study. Planned and held a highly successful Project
LIFT event to highlight aviation career opportunities. Launched an Airport Career Connected Learning
partnership with King County International Airport to increase awareness of airport-related career pathways in
middle and high schools. 
Small Business  Established New Diversity in Contracting program by helping divisions establish 2019 WMBE
utilization goals and finalizing 2019 internal/external outreach plans. Offered six PortGen training sessions with
over 300 disadvantaged businesses and prime contractors attended these events to learn about Port opportunities.
Staged outreach event at Airport Minority Advisory Council (AMAC) Conference where over 200 primes and
WMBE businesses speed dated and discussed partnership opportunities. Established first ever Disadvantaged
Business Enterprise (DBE) race conscious goal airport runway project and achieved 19% DBE utilization. 
Tourism  Conducted 34 travel/media FAMS tours which resulted in $550K in-kind contributions and $7.5
million earned media value. Approved 34 applicants and awarded $200K to 26 recipients of the 2018 Tourism
Marketing Support Program which offers marketing organizations partnering to promote their Washington State
destination to out-of-state visitors while promoting the use of Port facilities. Awarded 72 recipients of the
Spotlight Advertising Program which reserves 18 advertising locations at Sea-Tac airport to promote their
destinations to 49 million travelers. Coordinated a China Sales Mission with Holland America Line to promote
Alaska cruising and pre/post experiences to cruise tour operators and media. 
Portfolio Management  With one third of leases rolling over in EDD and Maritime portfolios in 2018, we
maintained 94% occupancy with average 11% increase in rates. Successfully concluded the market rate reset
negotiations with City ice/Lineage Logistics total 9% increase in lease revenue. Completed critical Central
Waterfront capital and maintenance projects (elevators and HVAC). Completed 90% design and submitted
permits for Bell Harbor Modernization. 
F.  KEY PERFORMANCE METRICS 
Building Occupancy by Location: 
100%
95%
90%                                                           Central Harbor
T-91 Uplands
85%
Marina Office & Retail
80%                                                           T-91 Industrial
T-106 Warehouse
75%
70%
Q4 2017     Q1 2018     Q2 2018     Q3 2018     Q4 2018


22

IV. ECONOMIC DEVELOPMENT DIVISION PERFORMANCE REPORT 12/31/18 
G.  OPERATING RESULTS 
Fav (UnFav)           Incr (Decr)
2016     2017     2018     2018     Budget Variance     Change from 2017
$ in 000's                            Actual     Actual     Actual    B udg e t        $ %        $ %
Revenue                            7,880      8,658      9,002      8,985        17        0%      344        4%
Conf & Event Centers                   8,022      9,133     11,703      9,537      2,166       23%      2,570       28%
Total Revenue                        15,902    17,791    20,705    18,522      2,182       12%     2,914       16%
Expenses
Portfolio Management                 3,425      3,875      3,571      3,778       207        5%      (304)       -8%
Conf & Event Centers                  6,932      7,639      9,889      8,465     (1,424)      -17%      2,251       29%
P69 Facilities Expenses                   180        206        235        289        54       19%        30       14%
RE Dev & Planning                     595        214        149        211        62       29%       (65)      -30%
EconDev Expenses Other                620        776        785      1,227       442       36%         9        1%
Maintenance Expenses                 2,783      3,666      3,915      3,055       (860)      -28%       249        7%
Maritime Expenses (Excl Maint)            31        52        166        344        178       52%       114      217%
Total EDD & Maritime Expenses     14,566    16,427    18,711    17,370     (1,341)      -8%     2,283       14%
Small Business                          21        64        132        140         8        6%        68      105%
Workforce Development                 522        850        702      1,992      1,290       65%      (148)      -17%
Tourism                            1,093      1,234      1,408      1,460        51        4%       174       14%
EDD Grants                             20        751        838        960        122       13%        87       12%
Total EDD Initiatives                1,656      2,900      3,080      4,552      1,472       32%       180        6%
Environmental & Sustainability            62        260        281        398        117       29%        21        8%
CDD Expenses                         212       387       283       329        46       14%      (104)      -27%
Police Expenses                        157        51        (76)       158        234      148%      (127)     -248%
Other Central Services                  4,222      5,257      5,259      5,816       557       10%         1        0%
Aviation Division                       107        113        113        127        14       11%         1        1%
Total Central Services & Aviation     4,761      6,068      5,860      6,829       969      14%      (209)      -3%
Envir Remed Liability                      0         0         0         0         0        NA         0        NA
Total Expense                        20,983    25,396    27,651    28,751      1,101        4%     2,255        9%
NOI Before Depreciation               (5,080)    (7,605)    (6,946)   (10,229)     3,283       32%       659        9%
Depreciation                           3,682      3,863      3,992      4,156       164        4%       129        3%
NOI After Depreciation                (8,763)   (11,469)   (10,938)   (14,385)     3,447       24%       531        5%
2018 YTD Actuals vs. Budget 
Operating Revenues were $2,182K higher than budget due to unplanned leases at T91 and higher volumes at
the conference and event center. 
Operating Expenses were $1,101K lower than budget: 
o   Conference and Event Center costs $1,424K unfavorable due to higher volumes. 
o   Workforce Development $1,290K lower than budget due to lower than planned spending for Construction
Trades - Regional Partnership, K-12 Career Connected Learning, Maritime Initiative, and Airport Career
Pathways implementation. 
o   EconDev Other $442K lower than budget due to unspent Opportunity Fund and delayed hiring. 
o   EDD Grants $122K favorable to budget due to unclaimed funds and Tourism $51K favorable to budget
due to lower than planned spending related to marketing and advertising 
o   Maintenance cost unfavorable to budget by $860K due to unbudgeted HVAC repairs at Bell Street
common areas and T91 work that should have been charged to Maritime. 
o   Other Central Services $557K lower than budget primarily due to lower charges from IT $147K, Public
Affairs $126K, and Human Resources $125K 
o   All other expenses net to $923K lower than budget. 
Net Operating Income was $3,283K above budget. 

23

IV. ECONOMIC DEVELOPMENT DIVISION PERFORMANCE REPORT 12/31/18 
2018 YTD Actuals vs. 2017 YTD Actuals 
Operating Revenues were $2,914K higher than 2017 actual due to stronger sales resulting from the completion
of the Pier 66 Cruise Terminal Expansion Project that increased additional capacity to offer larger events with
customized menus. 
Operating Expenses were $2,255K higher than 2017 actual: 
o   Conference and Event Center $2,251K greater than 2017 due to higher sales activity at Bell Harbor
International Conference Center. 
o   Portfolio Management lower $304K from one-time elevator modernization and T102 tenant expense work
in 2017. 
o   Maintenance Expenses $249K greater than 2017 due to Maintenance at P66 Common Area. 
o   EDD Grants $87K higher than 2017 due to increased allocated funds and claims. 
o   Workforce Development $148K lower than 2017 due to lower than prior year spending for Career
Pathways and Skills Center Feasibility Study. 
o   All other Expenses net to $120K above 2017. 
Net Operating Income was $659K above 2017 actual. 

H.  CAPITAL RESULTS 








Comments on Key Projects: 
Economic Development spent 34% of the annual approved capital budget. 
Projects with significant changes in spending were: 
T91 Upland Pre-Development  Project delayed due to capital planning. 
T-102 Outdoor Lighting  Project cost refinement based on final design. 
Central Waterfront Elevator Modernization Scope reduction and shift of work to 2019/2020. 
Bell Harbor International Conference Center Modernization  Shift of work to 2019/2020. 


24

V. CENTRAL SERVICES FINANCIAL & PERFORMANCE REPORT 12/31/18 
FINANCIAL SUMMARY 
Fav (UnFav)      Incr (Decr)
2016     2017     2018     2018    Budget Variance  Change from 2017
$ in 000's                               Actual     Actual     Actual    Budge t        $ %       $ %
Total Operating Revenues             1,330              68         (500)      182     (682)      -375.4%    (569)  -832.8%
Core Central Support Services             69,196            71,071            73,576            80,367     6,791      8.4%   2,505             3.5%
P olic e                                    23,045            22,095            23,908            27,065     3,157     11.7%   1,813             8.2%
Capital Development                     12,218     17,370            15,501            26,289    10,788    41.0%   (1,869)   -10.8%
Environment & Sustainability               8,824      6,975            8,770           11,504     2,735     23.8%   1,795           25.7%
Total Operating Expenses           113,284           117,511           121,755           145,225   23,470    16.2%   4,244           3.6%

Division Summary 2018 Actuals vs. 2018 Budget 
Operating Revenues were $-500K, $682K lower than budget due to a $863K special funding LEOFF 2
received from the Washington State Department of Retirement Systems (DRS). 
Operating Expenses were $23.5M favorable to budget mainly due to the latest estimate from the State Actuary
current funding of the DRS Pension Plans exceeded the future liabilities; also due to vacant positions, projects
spending delay and lower Outside Services costs. 
Capital spending was $9.7M, 39.9% of the 2018 budget. 
Division Summary 2018 Actuals vs. 2017 Actuals 
Operating Revenues were $569K below 2017 mainly due to a special funding LEOFF 2 received from the
DRS. 
Operating Expenses were $4.2M higher than 2017 mainly due to higher Payroll expenses and Outside Services
costs, partially offset by a $9.5M DRS Pension True-up credit. 
A.  BUSINESS EVENTS 
The Port Commission established policy directives on Diversity in Contracting, Priority Hire, Construction
Labor Practices in 2018. 
The Port Commission approved funds to address the shortage of local construction workers and to broaden
access to training and jobs for underrepresented populations in the industry. 
Obtained Congressional authorization for Seattle Harbor Deepening Project with the U.S. Army Corps of
Engineers. 
Received a regional Food Recovery Challenge Award from the U.S. Environmental Protection Agency for
outstanding accomplishments in preventing and diverting wasted food at the airport. 
Broadened awareness with multi-cultural communities through first multi-lingual boat tour with 200 attendees.
Developed the 2019 Safety Engagement Award to recognize employees that take action to ensure every
employee goes home safely. 
Developed, administered, received and reviewed full Employee Engagement survey results analysis. 
Hosted event to celebrate 10 year anniversary of the Port's Veteran Fellow Program. 
Expanded mobile safety performance apps to track all leading indicators including near miss and hazard
reporting, safety plans, permits, inspections and audits. 
Completed another successful summer High School internship program. Began to develop year-round High
School internship program.
Received the "Certificate of Achievement for Excellence in Financial Reporting" and the 2018 Distinguished
Budget Presentation Award from the Government Finance Officers Association (GFOA) of the United States
and Canada.
Issued Intermediate Lien Revenue Bonds of $555,564,000 to finance or refinance capital improvements to
aviation facilities. 
25

V. CENTRAL SERVICES FINANCIAL & PERFORMANCE REPORT 12/31/18 
B.  KEY PERFORMANCE METRICS 
Key Performance Indicators/Measures                          2018             2017/Notes 
A. Century Agenda Strategies 
1.   Small Business Participation  Annual / Small Works (portwide
)                                                           42.8%             69.0% 
2.   Small Business Participation  Annual / Major Construction
(port-wide) including Mega projects                               24.6%             25.3% 
3.   Small Business Participation  Annual / Goods & Services
(port-wide)                                                        22.1%              22.7% 
4.   Small Business Participation  Service Agreements (port-wide) - 
Annual (including Legal department Service Agreements)         36.5%             27.5% 
5.   Minority/Women-Owned Business Participation in Capital
Development Contracts                                        10.5%             7.3% 
B. High Performance Organization - Customer Satisfaction 
1.   Respond to Public Disclosure Requests                               657                  519, increased by
138 
2.   Information and Communication Technology System               99.5%               99.5% 
Availability 
3.   Customer Survey for Police Service Excellent or Very Good        90%                 83% 
4.   Oversee Implementation and Administration of CBAs               122                  99 
agreements 
535               590, decreased by
5.   Number of Jobs Openings 
55 
6.   Percent of annual audit work plan completed each year             94%                 100% 
7.   Request of information and guidelines for integrity & business     311                  263 
conduct 
C. High Performance Organization - Talent Development & Safety 
14 classes, 128     21 classes, 151 
1.   MIS and Clarity Training 
attendees           attendees 
1765              7084, decreased
2.   Employee Development Class Attendees/Structured Learning 
by 5319 
3.   Required Safety Training                                               94%                 95% 
4.   Occupational Injury Rate                                               4.87                 4.26 
5.   Days Away Severity Rate                                              61.44                N/A 
D. Financial Performance 
1.   Corporate costs as a % of Total Operating Expenses                 30.6%              31.5% 
2.   Construction Soft Costs - Total Soft Costs (36 months avg.)         18%                 28% 
3.   Clean independent CPA audits involving AFR                       yes                  yes 
4.   Timely process disbursement payment requests                      4 days               3 days 
5.   Keep receivables collections 85% current (within 30 days)          87%                 96% 
6.   Investment Portfolio Yield                                             2.13%               1.51% 
7.   Litigation and Claim Reserves (in $ thousand)                        $1,632               $928 



26

V. CENTRAL SERVICES FINANCIAL & PERFORMANCE REPORT 12/31/18 
C.  OPERATING RESULTS 
Division Summary 
Fav (UnFav)      Incr (Decr)
2016     2017     2018     2018    Budget Variance  Change from 2017
$ in 000's                               Actual     Actual     Actual    Budge t        $ %       $ %
Total Operating Revenues             1,330              68         (500)      182     (682)      -375.4%    (569)  -832.8%
Core Central Support Services             69,196     71,071            73,576            80,367     6,791      8.4%   2,505             3.5%
P olic e                                    23,045     22,095            23,908            27,065     3,157     11.7%   1,813             8.2%
Capital Development                     12,218     17,370            15,501            26,289    10,788    41.0%   (1,869)   -10.8%
Environment & Sustainability               8,824            6,975            8,770           11,504     2,735     23.8%   1,795           25.7%
Total Operating Expenses           113,284           117,511           121,755           145,225   23,470    16.2%   4,244           3.6%

2018 Actuals vs. 2018 Budget 
Operating Revenues were $682.2K unfavorable to budget due to lower miscellaneous revenues because of the
special funding LEOFF 2 received from the State of Washington Department of Retirement Systems (DRS). 
Operating Expenses were $23.5M favorable to budget due primarily to recording the annual DRS Pension Plan
True-up Expense based on the actuarial report on pension asset/liability at year-end, vacant positions, hiring
delays, and lower Outside Services Costs. 
2018 Actuals vs. 2017 Actuals 
Operating Revenues were $568.8K lower than 2017 level. 
Operating Expenses were $4.2M higher than last year primarily due to higher Payroll and Outside Services
Costs. 










27

V. CENTRAL SERVICES FINANCIAL & PERFORMANCE REPORT 12/31/18 
Fav (UnFav)       Incr (Decr)
2016     2017     2018     2018     Budget Variance   Change from 2017
$ in 000's                                      Actual    Actual    Actual   Budge t      $ %        $ %
Total Revenues                              1,330       68      (500)     182         (682)  -375.4%     (569)  -832.8%
Executive                                       2,185     1,287     2,136     2,001           (135)    -6.8%       849     66.0%
Commission                                1,569     1,685     1,848    1,984           136     6.9%      163      9.7%
Legal                                            3,365     3,741     3,948     3,617           (331)    -9.1%       207      5.5%
Public Affairs                                    6,033     7,112     7,362     8,308            946     11.4%       250      3.5%
Human Resources                              7,001     8,418     8,430    9,689          1,259    13.0%       12      0.1%
Labor Relations                                  1,268     1,678     1,079     1,371            293     21.3%      (599)    -35.7%
Internal Audit                                    1,455     1,603     1,521     1,828            307     16.8%       (83)         -5.1%
Accounting & Financial Reporting Services         6,550     6,751     6,842     8,148          1,306     16.0%        91      1.3%
Information & Communication Technology         20,158    21,633    21,961    23,308           1,347      5.8%       327      1.5%
Finance & Budget                                4,810     4,998     5,593     5,828            235      4.0%       595     11.9%
Maritime Finance                             1,212     1,229     1,445     1,478             33      2.2%       216     17.6%
Finance & Budget                             1,647     1,871     1,843     1,955            112      5.7%       (28)         -1.5%
Aviation Finance & Budget                     1,950     1,897     2,305     2,395             90      3.8%       408     21.5%
Business Intelligence                             1,004     1,211     1,323     1,543            220     14.3%       112      9.2%
Risk Services                                    3,202     3,077     3,095     3,322            227      6.8%        18      0.6%
Office of Strategic Initiatives                      1,393     1,882     1,596     2,265            669     29.5%      (286)    -15.2%
Central Procurement Office                        6,963     3,861     4,630     4,511           (119)    -2.6%       770     19.9%
Security and Preparedness                        1,420     1,754     2,027     2,394            366     15.3%       273     15.6%
Contingency                                      369       381       185      250           65     25.9%      (196)    -51.3%
Capital to Expense                                 450        -          -  -          -        0.0%       - 0.0%
Core Central Support Services                69,196    71,071    73,576    80,367           6,791      8.4%     2,505      3.5%
Police                                          23,045    22,095    23,908    27,065            3,157     11.7%     1,813      8.2%
Total Before Cap Dev & Environment         92,241    93,166    97,484  107,432            9,948     9.3%     4,318      4.6%
Capital Development
Engineering                                   4,493     5,284     5,477     7,841          2,364     30.1%       193      3.7%
Port Construction Services                      3,488     3,709     3,522     5,685          2,164     38.1%      (187)     -5.1%
Aviation PMG                             2,823     6,942     4,876   10,977          6,101    55.6%    (2,066)   -29.8%
Seaport PMG                               999     1,007     1,052    1,178           127    10.7%       44      4.4%
Capital Development Admin                     416       428       574      607           33      5.5%       146     34.2%
Sub-Total                                  12,218    17,370    15,501    26,289          10,789     41.0%     (1,869)    -10.8%
Environment & Sustainability
Aviation Environmental                        5,857     3,779     5,006     6,503          1,497     23.0%     1,227     32.5%
Maritime Environmental & Planning             2,098     2,157     2,418     3,046            628     20.6%       261     12.1%
Noise Programs                               722       670       722      742           20      2.7%        52      7.7%
Environment & Sustainability                     148       368       624     1,214            590     48.6%       255     69.3%
Sub-Total                                   8,824     6,975     8,770    11,504            2,735     23.8%     1,795     25.7%
Total Expenses                             113,284   117,511   121,755  145,225           23,470    16.2%     4,243      3.6%




28

V. CENTRAL SERVICES FINANCIAL & PERFORMANCE REPORT 12/31/18 
2018 Actuals vs. 2018 Budget 
Operating Expenses were $23.5M below budget due primarily to: 
o   Executive  unfavorable variance is due to Legal Expenses. 
o   Commission  favorable variance is due to the annual DRS Pension Plan True-up Expense and lower
Travel Expenses. 
o   Legal  unfavorable variance is due to Legal Expenses. 
o   Public Affairs  favorable variance is due to the annual DRS Pension Plan True-up Expense, vacant
positions, lower Outside Services, Travel and General Expenses. 
o   Human Resources  favorable variance is due to the annual DRS Pension Plan True-up Expense, several 
vacant positions and savings in Travel Expenses, Outside Services and Property Rentals. 
o   Labor Relations  favorable variance is due to the annual DRS Pension Plan True-up Expense, ,two 
vacant positions which one has been filled and credit received for a litigation reserve. 
o   Internal Audit  favorable variance is due to the annual DRS Pension Plan True-up Expense, vacant
positions of which one has been filled and savings in Outside Services. 
o   Accounting and Financial Reporting Services  favorable variance is due to the annual DRS Pension
Plan True-up Expense, 3 vacant positions, credit card rebates, charging more to capital projects than
originally anticipated and Travel Expenses. The savings in Salaries and Benefits have been used to cover
retro-active pay for positions recently converted to Non-Exempt and to backfill a vacant position with a
temporary employee. 
o   Information & Communication Technology  favorable variance is due to the annual DRS Pension Plan
True-up Expense and savings in Travel and Telecommunications Expenses. 
o   Finance & Budget  favorable variance is due primarily to the annual DRS Pension Plan True-up 
Expense. 
o   Business Intelligence  favorable variance is due to vacant positions and the annual DRS Pension Plan
True-up Expense. 
o   Risk Services  favorable variance is due to the property insurance renewal and broker fees being lower 
than anticipated and to the annual DRS Pension Plan True-up Expense. 
o   Office of Strategic Initiative  favorable variance is due to two vacant positions and to the annual DRS
Pension Plan True-up Expense. 
o   Central Procurement Office  unfavorable variance is due to intra-department allocation expense. 
o   Security and Preparedness  favorable variance is due to the annual DRS Pension Plan True-up Expense,
a vacant position, savings in Outside Services due to cancellation of a project and Travel Expenses. 
o   Contingency used fewer funds than anticipated. 
o   Police  favorable variance is due primarily to the annual DRS Pension Plan True-up Expense. 
o   Capital Development  favorable variance is due to hiring fewer contractors than budgeted, delayed
project, change in design and scope of the South Satellite project and due to the annual DRS Pension Plan
True-up Expense. 
o    Environment & Sustainability  favorable variance is due to vacant positions, the annual DRS Pension
Plan True-up Expense and savings in Outside Services due to delayed in SAMP and the Energy &
Sustainability and Forterra Assessment funds. 
2018 Actuals vs. 2017 Actuals 
Operating Expenses were $4.2M higher than prior year primarily due to higher Payroll and Outside Services
Costs. 
o   Executive  expenses were $849K above 2017: 
Due to charges to Legal Expenses. 
o   Information & Communication Technology  expenses were $327K above 2017: 
Due to higher payroll costs primarily, the addition of a new position that was transferred from another
department. 

29

V. CENTRAL SERVICES FINANCIAL & PERFORMANCE REPORT 12/31/18 
o   Finance and Budget  expenses were $595K above 2017: 
Due to higher payroll costs primarily, the addition of two new positions. 
o   Central Procurement Services  expenses were $770K above 2017: 
Due to higher payroll costs primarily, the addition of three new positions. 
o   Police  expenses were $1.8M above 2017: 
Added 3 K-9 Handlers in mid-2017 (and the 2018 number reflects the full-year costs). 
Added 12 Police Officers requested by the airlines in 2018. 
More overtime in the first quarter of 2018. 
o   Capital Development  expenses were $1.9M below 2017: 
Due to more Charges to Capital Projects than in the prior year. 
o   Environment & Sustainability  expenses were $1.8M over 2017 due to the following: 
SAMP Environmental Review expenses were $438K for 2018 compared only to $169K in 2017 (the 
budget for 2017 was $2.3M). Total budget variance is $1.3M for 2018. 
More spending in ACE fund, Energy & Sustainability fund for 2018 ($337K), while spending very
little last year (less than $40K). 
Added 3 new FTEs in the 2018 Environment & Sustainability budget. 
Added $175K for Aviation Biofuel Partnership Fund Development Project in the 2018 budget. 
Added $140K for terminals/facilities waste audits and reports for Maritime ENV in the 2018 budget. 
Included $110K for emission inventory update and three ports Salish Sea water initiative in the 2018
budget. 
D.  CAPITAL RESULTS 
2018    2018    Budget Variance
$ in 000's                             Actual   Budge t      $ %
Infrastructure - Small Cap               786     1,500       714     47.6%
Services Tech - Small Cap              225     1,150       925     80.4%
Project Cost Mgmt System             430      600      170     28.3%
Supplier Database System              349      450      101     22.4%
Corporate Firewall                       66       922       856     92.8%
PeopleSoft Financials Upgrade         2,025     3,100     1,075     34.7%
Radio System Upgrade               3,866    12,000     8,134     67.8%
Police Records Mgmt System            0      700      700    100.0%
CDD Fleet Replacement              768     1,210      442     36.5%
Corporate Fleet Replacement           726     1,180       454     38.5%
Other (note 1)                           466     1,526     1,060     69.5%
TOTAL                 9,707  24,338  14,631   60.1%
Note:
(1) "Other" includes remaining ICT projects and small capital projects/acquisitions.




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