Building on Strong Fundamentals
Commission Budget Retreat
Stephen P. Metruck
June 3, 2021

Agenda
Planning Timeline
Port wide SWOT Analysis
Context for budget development
Budget Guiding Principles
Strategies
Process Overview
Calendar
Upcoming retreats/ public presentations

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Port-wide Planning Timeline

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Port-wide Budget & Planning Timeline
Q1 - Review & Assess             Q2  Business Planning            Q3 - Budget formulation              Q4  Goal setting
Port-wide review of prior year's              SWOT Analyses               Strategic Resource Allocation           Set 2022 Biz Priorities
performance                  Business planning         Commission CA/Budget Reporting          Finalize Budget
ED Priorities identified                ED Priorities Reviewed             Finalize 2022 ED Priorities
2021  Q1                     Q2                      Q3                      Q4
Disseminate 2021 Portwide Priorities
Port-Wide SWOT analyses
Strategic   Planning                       Annual Strategic Plans Developed
Gathering CA KPI data
Reporting on CA KPIs    Sep 28
Review 2021 Accomplishments/2022 Priorities
2022 Biz Priorities set
Budget Retreat 1    Jun 3
Budgets formulated
Budget                                                    Budget Retreat 2   Jul 29
Commission Budget Briefings
Budget Adoption    Nov 16
2021 ED Priorities approved
Priorities                                           Initial 2022 ED priorities submitted
ED                                    Initial 2022 ED Priority Review
Revised 2022 ED Priority Review
Finalize 2022 ED Priorities

SWOT Analysis Overview

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SWOT Analysis

In 2020, the Port began assessing the overall health of the organization and
overall strategic planning priorities through a Port-wide SWOT analysis.
Each Operating Division, COE and Central Services Department submits its
review of current Strengths, Weaknesses, Opportunities and Threats.
They are then synthesized into a high-level, comprehensive snapshot of the
factors that will drive strategic planning and resource allocation for the
organization.

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Port-wide Strengths
Port has an adaptable knowledgeable workforce
Knowledgeable, highly-trained, specialized staff well versed in the Knowledge, Skills and Abilities necessary to
be effective and efficient across all departments
Our diverse portfolio of assets and essential businesses
SEA (Both hub airlines are recovering well in comparison to their peers), recreational boating, commercial
fishing, new and updated facilities (IAF, NSAT, Bell Harbor)
Diversity of locations and increased demand for real estate held by the Port
Relationships, Reputation & Community Support
Positive reputation, great partnerships and relationships with tenants, customers and regulatory agencies
Strong partnerships with external stakeholders and public support for initiatives (FlyHealthy@SEA, public
support for COVID initiatives, public support for E&S work)
Adaptability
Internal processes adapted quickly to COVID with functional and efficient teleworking; productivity remains
high despite challenges of global pandemic

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Port-wide Weaknesses
Field work impacting customer service and maintenance suffering
Construction negatively impacting customer service at SEA;
Lack of capacity to take on new projects and maintain existing ones; starting to get behind on critical
infrastructure maintenance
Inefficient processes/competing priorities
Internal systems are overly complex making collaboration with some external partners difficult
Unplanned and shifting priorities divert resources from established workplans
Decreased/uncertain capital capacity
In recovery from COVID, POS is experiencing fluctuating debt service coverage and cash balances
Facility/business growth capacity is diminishing
Some SEA and MT properties not designed for customer needs or volumes; growth and customer needs
exceed financial resources
Staffing challenges
Current operational demands are exceeding staff capacity to meet the need
Multiple vacancies, inability to hire and pre-COVID reliance on consultants is creating large gaps in the Port's
ability to be productive; existing employees are over-worked
Need to improve skill redundancy among staff, plan for natural attrition and maintain institutional knowledge
Resiliency
Lack of comprehensive port-wide mitigation strategies for all potential threats to the Port including, natural
disasters, climate change, cyber attacks and more
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Port-wide Opportunities
Innovation
Technological advancements such as new digital communications techniques, banking technologies,
automation and more can be leveraged to aid in productivity and serve customer needs
Cruise
Rebound of a more sustainable cruise industry; increased safety protocols could feed regional COVID recovery
Pause of Cruise Terminal development creates opportunity to rethink development into a multi-use facility
COVID regional recovery has opened new doors
More competitive construction costs
Increased real estate investment opportunities
Multiple opportunities to apply for grant funding for infrastructure, COVID recovery and more
Virtual teleworking environments opens new strategic possibilities
Reduced commute time, emissions, costs to the Port
Increased staff satisfaction, marketability for hiring, participation in training and development, efficient use of
unused workspaces
Increase diversity
The Port can prioritize increasing the diversity of its workforce and infuse EDI into its day-to-day operations
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Port-wide Threats
Uncertain Costs and Revenue Projections
Ongoing COVID related uncertainty in the travel industry
Escalation & inflation high, probability of big variability in construction pricing for raw materials
Slower rebound of cruise and travel industry is constraining key resources to continue operations
Slower and inequitable regional recovery impacts Port ability to collaborate externally; influence "return to better"
Staff, the Port's greatest asset, is increasingly overworked and under-resourced
Aging workforce, unexpected attrition, hiring challenges, understaffed, overworked
Reduced person-to-person contact is creating challenges with morale, on- and off-boarding, mental health
COVID economic situation makes hiring and staff capacity uncertain for the foreseeable future
Climate Change moves inexorably forward
Impact on fisheries from sea temperature changes and acidification and port infrastructure is inevitable
Cyber Security must be a priority
Malicious cyber activity has increased dramatically during the pandemic
In a telework environment, staff and the Port are more vulnerable to attack

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Port of Seattle
2022 Budget Planning
Building on Strong Fundamentals

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2022 Budget Guiding Principles
Continue to focus on the health and safety of employees,
customers and the public with increased utilization of Port facilities
Ensure the efficient operation of Port business gateways as
business volumes recover
Support regional equitable economic recovery through advancing
the Port's capital improvement plan and continued investment in
community programs
Assess the longer-term effects of COVID-19 on Port operations and
facility needs
Invest in employee development, retention, and recruitment
Need to be adaptable and flexible to the changing business
environment
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2022 Budget Strategies
Maintain expense growth in line with projected revenue
growth
Reassess staffing needs considering projected increases in
business activity
Restore merit pay increases for non-represented staff and
increase expenditures for training and development
Begin to incorporate an equity lens in developing and
reviewing budgets and operational plans
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2022 Budget Process Overview
Environmental Assessment
Assess business environment and needs
Update operating and capital forecasts
Conduct SWOT analysis
Budget Preparation
Develop budget assumptions and drivers
Identify key financial metrics and budget targets
Issue budget calendar and departmental guidelines
Prepare operating and capital budgets in accordance with principles and guidelines
Budget Reviews and Approvals
Conduct internal department and division budget reviews
Publish the preliminary budget document to the public
Commission review and approval of budgets/capital plans
Final Steps
File the Statutory Budget with King county
Publish the final budget document to the public
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2022 Budget Calendar
(Commission Items in Blue)
5/21  2022 Budget Planning Discussion with ELT
6/03  Commission Budget Retreat
7/13  2022 Budget Process and Schedule Commission Briefing
7/14  2022 Budget Guidelines available
7/29  Commission Budget Retreat
8/06  Central Services Department new budget requests due to F&B
8/18  08/25: Executive review of Central Services Department Budgets/New Requests
9/01  Executive review of combined Central Services Budget
9/13  Executive review of Maritime and EDD Operating & Capital Budgets
9/14  2022 North Harbor Budget to the NWSA
9/15  Executive review of Aviation Operating & Capital Budgets

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2022 Budget Calendar
(Commission Items in Blue)
09/28  Central Services Budget and Port wide Budget Overview Commission briefing
10/12  Operating Divisions Commission Budget Study Session
10/15  POS/NWSA ILA Service Directives due to the NWSA
10/19  2022 Preliminary Budget Document available to Commission
10/21  2022 Preliminary Budget Document available to the public
10/26  Tax Levy & Draft Plan of Finance Commission briefing
10/28  NWSA Budget study session with Managing Members
11/09  NWSA Budget adoption by Managing Members
11/09  Introduction of preliminary 2022 Budget and public hearing
11/16  Adoption of 2022 Budget
12/01  File the 2022 Statutory Budget with King county
12/15  Publish the 2022 Final Budget to the public

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