11a. Attachment
2023 Financial Performance Briefing
Item Number: 11a_attach 1
Meeting Date: March 26, 2024
PORT OF SEATTLE
Q4 2023 FINANCIAL PERFORMANCE REPORT
AS OF DECEMBER 31, 2023
Q4 2023 FINANCIAL & PERFORMANCE REPORT 12/31/23
TABLE OF CONTENTS
PAGE
I. Portwide Performance Report 3-8
II. Aviation Division Report 9-18
III. Maritime Division Report 19-23
IV. Economic Development Division Report 24-27
V. Central Services Division Report 28-32
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I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/23
I. PORTWIDE
EXECUTIVE SUMMARY
The Port’s overall 2023 financial performance was strong and continues reflect economic recovery from the
pandemic. Airport passenger volume grew 10.7% higher than 2022 and was only 1.8% lower than pre-pandemic
volumes in 2019. Non-Aeronautical revenues were $30.5M over budget due to higher revenues in most lines of
business.
The 2023 cruise season culminated on October 30th with a record 1,777,984 revenue passengers and 291 sailings.
Each homeported vessel brings in over $4 million to the local economy each time it provisions at the dock. The
Port continues provide shore power connections to vessels allowing them to turn off diesel engines while at the
dock, which reduces air pollution and greenhouse gas emissions.
Cruise, Fishing, and Maritime Portfolio Management were above budget while grain volume was below budget
due to lower demand from China. Additionally, conference center volume was below budget due to events and
conference cancellations this year.
Overall, operating revenues were $15.6M or 1.6% above budget while expenses were $16.3M or 2.8% below
budget due to non-cash expense credit related to the Port's public pension plans. Excluding the credit, the operating
expenses were $12.4M over budget.
PORTWIDE FINANCIAL SUMMARY
Actual vs. Budget Change from 2022
2021 2022 2023
Variance Incr (Decr)
$ in 000's Actual Actual Actual $ % $ %
Aeronautical Revenues 317,513 402,540 479,697 (25,251) -5.0% 77,157 19.2%
Airport Non-Aero Revenues 183,819 256,613 326,592 30,490 10.3% 69,980 27.3%
Non-Airport Revenues 120,689 150,977 162,991 10,358 6.8% 12,014 8.0%
Total Operating Revenues 622,020 810,130 969,281 15,597 1.6% 159,151 19.6%
Total O&M Expenses w/o Pension True-up 422,372 491,377 585,858 (12,427) -2.2% 94,481 19.2%
DRS Pension True-up Exp (57,716) (15,638) (28,709) 28,709 0.0% (13,071) 83.6%
Total O&M Expenses with Pension True-up 364,656 475,739 557,149 16,282 2.8% 81,410 17.1%
Depreciation 190,683 232,236 250,644 (42,694) -20.5% 18,408 7.9%
NOI After Depreciation w/o Pension True-up 8,965 86,517 132,778 (39,524) -22.9% 46,261 53.5%
NOI After Depreciation with Pension True-up 66,681 102,155 161,487 (10,815) -6.3% 59,332 58.1%
2023 Actuals vs. 2023 Budget:
• Airport Non-Aero Revenues were up $30.0M compared to budget mainly due to higher Public Parking, Rental
Car, and Airport Commercial Properties revenues.
• Non-Airport Operating Revenues were up $10.4M compared to budget mainly due to higher NWSA
Distributable revenue and Cruise; partially offset by lower Grain and Conference & Event Centers.
• Total Operating Expenses were $12.4M higher than budget due to higher Payroll, Equipment Expense, Supplies
& Stock, Other Expenses, and lower charges to Capital Projects; offset by lower Outside Services, Travel &
Other Employee Expenses, and Third-Party Management Operating Expenses.
2023 Actuals vs. 2022 Actuals:
• Total Operating Revenues were up $159.2M due to higher passenger volumes compared to 2022; higher
revenues in non-aero lines of businesses (Public Parking, Rental Cars, ADR & Terminal Leased Space, Ground
Transportation, Airport Commercial Properties, and Clubs & Lounges), Cruise, and NWSA Distributable
Revenue.
• Total Operating Expenses was $94.5M higher compared to 2022 due to higher Payroll, Outside Services,
Supplies & Stock, and Other Expenses.
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I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/23
NON-AIRPORT FINANCIAL SUMMARY
Actual vs. Budget Change from 2022
2021 2022 2023
Variance Incr (Decr)
$ in 000's Actual Actual Actual $ % $ %
Aeronautical Revenues 317,513 402,540 479,697 (25,251) -5.0% 77,157 19.2%
Airport Non-Aero Revenues 183,819 256,613 326,592 30,490 10.3% 69,980 27.3%
Non-Airport Revenues 120,689 150,977 162,991 10,358 6.8% 12,014 8.0%
Total Operating Revenues 622,020 810,130 969,281 15,597 1.6% 159,151 19.6%
Total O&M Expenses w/o Pension True-up 422,372 491,377 585,858 (12,427) -2.2% 94,481 19.2%
DRS Pension True-up Exp (57,716) (15,638) (28,709) 28,709 0.0% (13,071) 83.6%
Total O&M Expenses with Pension True-up 364,656 475,739 557,149 16,282 2.8% 81,410 17.1%
Depreciation 190,683 232,236 250,644 (42,694) -20.5% 18,408 7.9%
NOI After Depreciation w/o Pension True-up 8,965 86,517 132,778 (39,524) -22.9% 46,261 53.5%
NOI After Depreciation with Pension True-up 66,681 102,155 161,487 (10,815) -6.3% 59,332 58.1%
2023 Actuals vs. 2023 Budget
• Non-Airport Operating Revenues were up $10.4M compared to budget mainly due to higher NWSA
Distributable revenue and Cruise; partially offset by lower Grain and Conference & Event Centers.
• Non-Airport Operating Expenses were $1.0M higher than budget because of higher Payroll, Supplies & Stock,
Equipment, and lower charges to Capital Projects; offset by project spending delays and timing of tenant
improvements and maintenance.
Actuals vs. 2022 Actuals
• Non-Airport Operating Revenues were $12.0M higher compared to 2022 because of higher revenues from
Cruise, NWSA Distributable Revenue, Recreational Boating, Fishing Operations, and Central Harbor
Management; partially offset by lower Grain, and Maritime Portfolio Management revenues.
• Non-Airport Operating Expenses were $17.5M higher than 2022 due to higher Payroll and Outside Services;
offset by lower General Expenses and higher charges to Capital Projects.
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I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/23
MAJOR OPERATING REVENUES SUMMARY
Actual vs. Budget Change from 2022
2021 2022 2023 2023 Variance Incr (Decr)
$ in 000's Actual Actual Actual Budge t $ % $ %
Aeronautical Revenues 317,513 402,540 479,697 504,948 (25,251) -5.0% 77,157 19.2%
Public Parking 64,104 88,899 110,990 96,768 14,222 14.7% 22,091 24.8%
Rental Cars - Operations 32,722 44,302 46,506 39,353 7,153 18.2% 2,204 5.0%
Rental Cars - Operating CFC 2,018 12,171 16,954 14,477 2,478 17.1% 4,784 39.3%
ADR & Terminal Leased Space 41,607 43,126 74,246 73,360 886 1.2% 31,120 72.2%
Ground Transportation 11,947 20,804 24,878 24,324 554 2.3% 4,074 19.6%
Employee Parking 9,006 10,645 10,574 10,462 112 1.1% (71) -0.7%
Airport Commercial Properties 12,520 16,747 20,370 16,959 3,411 20.1% 3,623 21.6%
Airport Utilities 6,350 7,943 8,666 8,541 125 1.5% 723 9.1%
Clubs and Lounges 3,478 8,688 11,710 9,859 1,851 18.8% 3,022 34.8%
Cruise 9,517 30,469 41,726 34,445 7,281 21.1% 11,258 36.9%
Recreational Boating 12,851 13,978 15,505 15,591 (86) -0.6% 1,527 10.9%
Fishing & Operations 9,859 10,566 11,640 9,809 1,831 18.7% 1,073 10.2%
Gra in 6,112 5,792 3,356 5,814 (2,458) -42.3% (2,436) -42.1%
Maritime Portfolio Management 10,392 10,550 10,263 10,192 71 0.7% (287) -2.7%
Central Harbor Management 7,561 8,791 10,465 9,699 766 7.9% 1,674 19.0%
Conference & Event Centers 1,910 8,914 6,738 12,479 (5,741) -46.0% (2,176) -24.4%
NWSA Distributable Revenue 55,998 55,353 57,685 50,305 7,380 14.7% 2,333 4.2%
Other 6,555 9,851 7,311 6,297 1,013 16.1% (2,540) -25.8%
Total Operating Revenues (w/o Aero) 304,507 407,590 489,584 448,736 40,848 9.1% 81,994 20.1%
TOTAL 622,020 810,130 969,281 953,684 15,597 1.6% 159,151 19.6%
MAJOR OPERATING EXPENSES SUMMARY
Actual vs. Budget Change from 2022
2021 2022 2023 2023 Variance Incr (Decr)
$ in 000's Actual Actual Actual Budge t $ % $ %
Salaries & Benefits 144,953 159,305 187,197 184,979 (2,219) -1.2% 27,893 17.5%
Wages & Benefits 134,738 146,887 167,928 156,181 (11,748) -7.5% 21,041 14.3%
Payroll to Capital Projects 28,979 27,020 32,448 44,563 12,115 27.2% 5,428 20.1%
Outside Services 99,482 116,790 145,095 165,506 20,411 12.3% 28,305 24.2%
Utilitie s 26,236 31,202 31,226 30,529 (698) -2.3% 24 0.1%
Equipment Expense 6,863 12,477 13,046 10,487 (2,559) -24.4% 568 4.6%
Supplies & Stock 9,368 11,549 12,956 8,994 (3,963) -44.1% 1,407 12.2%
Travel & Other Employee Expenses 2,031 4,400 5,511 7,344 1,833 25.0% 1,111 25.3%
Third Party Mgmt Op Exp 4,994 8,985 10,930 14,144 3,214 22.7% 1,945 21.6%
B&O Taxes 4,120 5,406 6,431 6,874 443 6.4% 1,025 19.0%
Other Expenses 15,640 21,475 39,947 26,525 (13,422) -50.6% 18,472 86.0%
Charges to Capital Projects/Overhead Alloc (55,031) (54,120) (66,857) (82,692) (15,835) 19.1% (12,737) 23.5%
TOTAL w/o DRS Pension True-up 422,372 491,377 585,858 573,431 (12,427) -2.2% 94,481 19.2%
DRS Pension True-up Credit (57,716) (15,638) (28,709) - 28,709 0.0% (13,071) 83.6%
TOTAL w/ DRS Pension True-up 364,656 475,739 557,149 573,431 16,282 2.8% 81,410 17.1%
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I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/23
PORTWIDE COMPREHENSIVE FINANCIAL SUMMARY
Actual vs. Budget
2021 2022 2023 2023
Variance
$ in 000's Actual Actual Actual Budget $ % Explanation
Revenues
1. Operating Revenues 622,020 810,130 969,281 953,684 15,597 1.6%
2. Tax Levy 78,311 80,785 82,313 82,657 (344) -0.4% In line with budget
3. PFCs 72,845 88,284 95,681 94,122 1,559 1.7% higer enplanements than budget
4. CFCs 24,271 24,461 24,657 24,658 () 0.0%
5. Fuel Hydrant 7,010 7,451 6,681 7,023 (342) -4.9% In line with budget
6. Non-Capital Grants & Donations 103,206 153,764 19,192 17,101 2,092 12.2% More Non-capital federal grants than budgeted
7. Capital Contributions 47,632 38,116 36,309 44,377 (8,069) -18.2% Less Capital federal grants than budgeted
8. Interest Income (5,386) (50,735) 94,541 64,128 30,413 47.4% Mainly from Unrealized Gain on Investments
Total 949,911 1,152,256 1,328,655 1,287,749 40,906 3.2%
Expenses
1. O&M Expense 422,372 491,377 585,858 573,431 (12,427) -2.2% Mainly due to higher Env Remediation Exp.
2. DRS Pension True-up Credit (57,716) (15,638) (28,709) - 28,709 0.0% Unbudgeted DRS pension credit
3. Depreciation 190,683 232,236 250,644 207,951 (42,694) -20.5% More new assets came into service
4. Revenue Bond Interest Expense 132,925 140,838 146,686 171,294 24,608 14.4% Did not issue new bonds as budgeted
5. GO Bond Interest Expense 11,004 11,877 10,162 10,562 400 3.8% In line with budget
6. Public Expense 9,769 8,282 20,869 11,309 (9,560) -84.5% Mainly due to higher Non-Construction Contri.
7. Non-Op Environmental Expense 7,495 1,296 10,056 10,500 444 4.2% In line with budget
8. Other Non-Op Rev/Expense 18,419 58,489 268 (14,916) (15,184) 101.8% Less Harbor Maintenance Tax than budgeted
Total 734,952 928,756 995,834 970,131 (25,704) -2.6%
Special Item 34,907 - - - - 0.0%
Change In Net Assets 180,053 223,500 332,820 317,619 15,202 4.8%
* Operating revenues & expenses include certain GASB 87 (Leases) accounting adjustments that will be accounted for as non-operating in
the Port's audited financial statements. The Port implemented GASB 87 in 2022.
KEY PERFORMANCE METRICS
Fav (UnFav) Incr (Decr)
2022 2023 2023 Act vs. Budget Change from 2022
Variance
Actual Actual Budge t Chg. % Chg. %
Total Passengers (in 000's) 45,964 50,885 48,887 1,998 4.1% 4,921 10.7%
Landed Weight (lbs. in millions) 29,079 32,064 30,226 1,838 6.1% 2,986 10.3%
Passenger CPE (in $) 16.09 17.52 19.29 1.77 9.2% 1.43 8.9%
Cruise Passenger (in 000's) 1,309 1,778 1,430 348 24.3% 469 35.8%
Shilshole Bay Marina Occupancy 97.6% 98.1% 97.5% 0.6% 0.6% 0.5% 0.5%
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I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/23
COMMUNITY PROGRAMS
Fav (UnFav) Incr (Decr)
Actual vs. Budget Change from 2022
2021 2022 2023 2023 Variance
Program ($ in $000) Actual Actual Actual Budget $ % $ %
1) Energy & Sustainability Fund 160 35 34 120 86 72.0% (2) -4.6%
2) Airport Community Ecology (ACE) Fund 154 89 27 40 13 31.5% (61) -69.2%
3) South King County Community Impact Fund (SKCCIF) 1 848 1,111 1,758 2,214 456 20.6% 647 58.2%
4) Duwamish Valley Community Equity Program 304 545 492 462 (30) -6.5% (53) -9.7%
5) EDD Partnership Grants 771 102 1,283 850 (433) -50.9% 1,181 1155.3%
6) Tourism Marketing Support Program 2 1,917 1,743 1,540 1,830 290 15.8% (202) -11.6%
7) Airport Spotlight Ad Program 3&4 269 322 362 466 105 22.4% 40 12.5%
8) City of SeaTac Community Relief 3 1,400 1,400 1,400 1,400 - 0.0% - 0.0%
9) Maritime Blue (formerly Maritime Innovation Center) 118 145 120 150 30 20.0% (25) -17.2%
10) Workforce Development 2 4,031 3,122 4,242 5,186 944 18.2% 1,120 35.9%
a. Youth Career Launch Program (formerly OYI) 1,721 3 689 1,000 311 31.1% 686 26521.3%
11) High School Internship Program 317 317 277 457 180 39.4% (40) -12.6%
12) Diversity in Contracting 2 1,092 1,382 1,906 2,299 393 17.1% 523 37.9%
a. Small Bus. Accelarator (DIC) 5 243 188 212 250 38 15.3% 24 12.9%
13) Equity, Diversity & Inclusion 2 1,149 1,284 1,319 1,767 449 25.4% 35 2.7%
14) Sustainable Aviation Fuels & Air Emissions Program - 116 103 100 (3) -3.4% (13) -11.0%
15) Low Carbon Fuel Standard Support 87 29 40 150 110 73.3% 11 37.3%
16) Community Biz Connector (Regional Small Biz Partnerships) - - 25 350 325 92.9% 25 0.0%
17) Public Market Study - - 175 100 (75) -75.0% 175 0.0%
18) Seattle Aquarium Partnership 1,100 1,000 (100) -10.0% 1,100 0.0%
TOTAL w/o DRS PensionTrue-up Credit 12,375 11,554 15,991 18,691 2,700 14.4% 4,437 38.4%
DRS Pension Credit True Up (532) (218) (331) - 331 0% (113) 51.8%
TOTAL w/ DRS PensionTrue-up Credit 11,843 11,336 15,660 18,691 3,031 16.2% 4,324 38.1%
Notes:
1) Budget shows grants only, excludes payroll.
2) DRS Pension credit excluded from dept totals.
3) Budgeted as Non-ops Expenses.
4) Free advertising space provided at the Airport. FAA requires that lost revenue be reimbursed to the Airport.
5) A portion of the SKCCIF budget is in Diversity in Contracting; adjusted to avoid double counting.
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I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/23
KEY BUSINESS EVENTS
The 2023 cruise season ended with the departure of the Norwegian Cruise Line’s Norwegian Sun from Bell Street
Pier Cruise Terminal at Pier 66 on October 30. The 2023 cruise season welcomed a record 1,778,193 revenue
passengers and 291 sailings. Each homeported cruise ship at berth is estimated to bring $4 million in economic
impact to the region and nearly $900 million during a cruise season. More than one-third of cruise ships utilized
shore power at Smith Cove Cruise Terminal, setting a record number of plug-ins for a Seattle cruise season. The
Port was one of the first ports to provide shore power plug-in capability for two vessels at once and the first
homeport to offer shore power. Work is currently underway to make Pier 66 capable of supplying electrical power
for the 2024 cruise season.
The Port established a new Environmental Legacy Fund, a dedicated account into which the Port will deposit
property tax dollars for use in addressing historical industrial pollution on its properties. This new fund will start
with a $30 million investment of already collected tax levy dollars. The fund will be used to invest in research,
investigation, design, and cleanup actions. Eventually, some of the expenses may be covered responsible parties,
state grants, and insurance. To date, the Port has completed a substantial amount of cleanup and has also gained
national and international recognition for its innovative and community-centered approaches. Currently, the Port is
actively working on 18 environmental remediation projects to improve water quality, support salmon and marine
mammal recovery, and restore habitat. Many of these projects are collaborations with other governments and
organizations.
The Port and Busan Port Authority reaffirmed their sister port agreement at the 11th Annual Busan International
Port Conference on November 28. In 1981, the Port and Port of Busan entered into the original sister port
agreement and in 2003, the Port of Busan was reformed to become the Busan Port Authority. The two entities
share a commitment to sustainability and to increase efficiency through technology, equipment, and process
improvement.
Six new Oscars, AI waste-sorting technology, will help visitors sort their waste items into compost, recycling, or
trash bins. Four has been installed at SEA, one at Bell Harbor Conference Center, and one at Pier 66 in the
Norwegian Cruise Lines Terminal. When users walk up to the machine, they place an item in front of a camera for
the system to analyze. Oscar then tells the user which bin to use to dispose of the item. Oscars are designed so their
cameras do not capture or store identifying information about users, just the waste items they present for sorting.
The installation of these new AI units is one of the ways the Port is fulfilling its goal to be the greenest and most
energy-efficient port in North America.
The airport launched SEA Access, the new name for its accessibility program. The goal of the program is to create
a safe, welcoming, and easy travel experience for all. This is an interdepartmental collaboration that supports the
accessibility needs of customers and workers at SEA Airport through accessible facilities, customer service
resources, and community engagement.
SEA will welcome Delta Air Lines for new international daily service to Taipei (TPE) in June 2024. This
continues SEA’s increase of international services since the pandemic and the rapid success of the new
International Arrivals Facility (IAF) to welcome the world to the Puget Sound region.
SEA’s Central Terminal's dining and retail partners Salty’s and BrewTop Social have achieved the United States
Green Building Council’s Leadership in Energy and Environmental Design (LEED) Certification. The locations
are the first tenant project at SEA Airport to achieve LEED Certification. Additionally, these locations were part of
the $21.8 million renovation of the Central Terminal to elevate the customer experience with more dining options,
seating, charging stations, and ADA accessibility improvements.
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I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/23
CAPITAL SPENDING SUMMARY
2023 2023 2023 Budget Variance
$ in 000's Actual Budget POF $ %
Aviation 444,072 485,572 663,877 41,500 8.5%
Maritime 21,935 32,313 40,805 10,378 32.1%
Economic Development 6,136 8,086 6,737 1,950 24.1%
Central Services & Other (note 1) 8,925 15,371 14,424 6,446 41.9%
TOTAL 481,068 541,342 725,843 60,274 11.1%
Note:
(1) "Other" includes 100% Port legacy projects in the North Harbor and Storm Water Utility Small Capital projects.
Total capital spending was $481.1M for 2023, 88.9% of the budget due to delay in projects: C Concourse
Expansion, Perimeter Intrusion Detection, Checked Bag Recap/Optimization, MT Low Voltage Sys Upgrade,
International Arrivals Facility, Concourse A Building Expansion, and Engineering Fleet Replacement.
PORTWIDE INVESTMENT PORTFOLIO
During the fourth quarter of 2023, the investment portfolio earned 3.70% versus the benchmark’s (the Bank of
America Merrill Lynch 1-3 Year US Treasury & Agency Index) of 4.34%. Over the last twelve months, the
portfolio and the benchmark have earned 3.31% and 4.66%, respectively. Since the Port became its own Treasurer
in 2002, the life-to-date earnings of the Port’s portfolio and the benchmark are 2.35% and 1.89%, respectively.
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II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
II. AVIATION DIVISION
FINANCIAL SUMMARY
Actual vs. Budget Incr/(De cr)
Financial Summary 2021 2022 2023 2023 Variance Change from 2022
($ in 000's)
Actual Actual Actual Budge t $ % $ %
Operating Revenue
Aeronautical Revenues 317,513 402,540 479,697 504,948 (25,251) -5.0% 77,157 19.2%
Non-Aeronautical Revenues 183,819 256,613 326,592 296,102 30,490 10.3% 69,980 27.3%
Total Operating Revenues 501,332 659,153 806,289 801,051 5,239 0.7% 147,136 22.3%
Total Operating Expenses w/o Pension True-U 341,679 394,990 471,946 460,535 (11,410) -2.5% 76,956 19.5%
DRS Pension True-Up Expense (47,462) (12,286) (23,572) 23,572 (11,286) 91.9%
Total Operating Expenses w/ Pension True-Up 294,217 382,704 448,374 460,535 12,162 2.6% 65,670 17.2%
Net Operating Income w/ Pension True-Up 207,114 276,449 357,916 340,515 17,400 5.1% 81,466 29.5%
CPE 15.93 16.09 17.52 19.29 1.77 9.2% 1.43 8.9%
Non-Aero NOI ($ in 000s) 135,483 180,983 180,983 150,386 (30,597) -20.3% - 0.0%
Enplaned passengers (in 000s) 18,073 22,966 25,371 24,444 (928) -3.8% 2,405- 10.5%
Capital Expenditures (in 000s) 389,051 311,631 444,072 485,572 41,500 8.5% 132,441 42.5%
2023 Actuals vs. 2023 Budget
• Net Operating Income (NOI) was $17.4M or 5.1% higher compared to the budget, driven by:
o Non-Aeronautical revenues were $30.5M or 10.3% higher. Landside revenues recovered strongly
throughout the year, especially in Parking, Rental Car, and GT due to high demand from returning
passengers. Concessions still required Federal Relief of $1.9M.
o Aeronautical revenues were ($25.3M or 5%) lower due primarily to a large under spend in Outside
Services due to delays in capital programs, and due to receiving a pension credit of approximately $3M
which offset Aeronautical costs in 2023.
o Total Operating Expenses were $12.2M or 2.6% lower than budget driven primarily by the total pension
credit of approximately $24M to Aviation. Without the pension credit, operating expenses were ($11.4M
or 2.5%) over-run.
2023 Actuals vs. 2022 Actuals
• Net Operating Income for 2023 was $81.5M or 29.5% higher than prior year primarily driven by:
o Operating Revenues $147M or 22.3% higher compared to prior year was due to passenger levels
improving with only being down by 1.8% compared to 2019.
o Operating Expenses $65.7M or 17.2% higher compared to prior year was primarily driven by higher
Payroll, Outside Services, and Charges from Other Divisions compared to 2023.
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II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
A. BUSINESS EVENTS
• 2023 passenger levels were 1.8% lower than 2019.
• Aero Revenue $479.7M
o Lower than budget by $25.3M primarily driven by Aero share of pension credit and lower debt service
charged to Aero rates due to capital project schedule delays.
• Non-Aero Revenue $326.6M
o Exceeded budget by $30.5M primarily driven by strong performance in Landside lines of businesses.
B. KEY PERFORMANCE METRICS
% Change
2021 YE 2022 YE 2023 YE from 2022
Total Passengers (000's)
Domestic 34,483 41,582 45,090 8.4%
International 1,669 4,382 5,796 32.3%
Total 36,152 45,964 50,885 10.7%
Ope rations 374,510 401,351 422,508 5.3%
Landed Weight (In Millions of lbs.)
Cargo 2,920 2,745 2,748 0.1%
All other 26,333 26,333 29,317 11.3%
Total 29,253 29,079 32,064 10.3%
Cargo - Metric Tons
Domestic freight 366,312 335,512 305,141 -9.1%
International & Mail freight 132,428 120,777 111,983 -7.3%
Total 498,740 456,289 417,124 -8.6%
*Mail weight for 2021 forward is incorporated in freight
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II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
Key Performance Measures
2021 2022 2023 2023 Actual vs. Budget Incr/(Decr)
Variance Change from 2022
Actual Actual Actual Budget
$ % $ %
Key Performance Metrics
Cost per Enplanement (CPE) 15.93 16.09 17.52 19.29 1.77 9.2% 1.43 8.9%
Non-Aeronautical NOI (in 000's)1 93,175 131,145 180,983 150,386 30,597 20.3% 49,838 38.0%
Other Performance Metrics
O&M Cost per Enplanement 16.28 17.20 18.60 18.84 0.24 1.3% 1.40 8.2%
Non-Aero Revenue per Enplanement 10.17 11.17 12.87 12.11 0.76 6.3% 1.70 15.2%
Debt per Enplanement (in $) 198 193 166 154 (12) -7.6% (27) -13.9%
Debt Service Coverage 1.69 2.64 2.02 1.87 0.15 8.0% (0.62) -23.5%
Days cash on hand (10 months = 304 days) 423 457 507 457 50 11.0% 50 11.0%
Activity (in 000's)
Enplanements 18,073 22,966 25,371 24,444 928 3.8% 2,405 10.5%
Total Passengers 36,154 45,964 50,885 48,887 1,998 4.1% 4,921 10.7%
Key Performance Metrics
2023 Actuals vs. 2023 Budget
• Cost per Enplanement (CPE):
o CPE was $1.77 or 9.2% favorable than budget.
o Non-Aero NOI was $30.6M or 20.3% favorable due to Landside revenues continuing to recover strongly,
especially in Parking, Rental Car, and GT due to high demand from returning passengers.
2023 Actuals vs. 2022 Actuals
• CPE was $1.43 higher compared to prior year due to Increases due to higher divisional allocations, changes in
ERL & Capital to Expense adjustments, IAF Smarte Carte, IAF CBP Expenses, and rebalancing of VIP
Hospitality focus areas.
• Non-Aero NOI was $49.8M higher than prior year due to projection of improved revenues compared to prior
year across the Non-Aeronautical businesses.
12
II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
C. OPERATING RESULTS
Division Summary – Actuals
Actual vs. Budget Incr/(Decr)
Total Airport Expense Summary 2021 2022 2023 2023 Variance Change from 2022
($ in 000's)
Actual Actual Actual Budget $ % $ %
Operating Expenses
Payroll 157,207 168,389 193,130 189,477 (3,653) -1.9% 24,741 14.7%
Outside Services 62,382 75,700 89,551 109,249 19,698 18.0% 13,850 18.3%
Utilities 20,175 22,880 23,285 22,321 (965) -4.3% 406 1.8%
Other Expenses 1,519 15,141 17,679 4,296 (13,383) -311.5% 2,537 16.8%
Total Airport Direct Charges 241,284 282,110 323,645 325,342 1,697 0.5% 41,535 14.7%
Environmental Remediation Liability 1,583 (1,274) 13,017 7,120 (5,897) -82.8% 14,291 -1121.3%
Capital to Expense 1,254 2,356 480 - (480) (1,876) -79.6%
Total Exceptions 2,837 1,081 13,497 7,120 (6,377) -89.6% 12,415 1148.2%
-
Total Airport Expenses 244,121 283,191 337,142 332,462 (4,680) -1.4% 53,950 19.1%
-
Corporate 71,550 80,452 96,213 92,679 (3,534) -3.8% 15,761 19.6%
P olice 23,473 27,660 33,750 30,264 (3,487) -11.5% 6,090 22.0%
Maritime/Economic Development/Other 2,536 3,687 4,840 5,131 291 5.7% 1,154 31.3%
Total Charges from Other Divisions 97,558 111,799 134,804 128,074 (6,730) -5.3% 23,005 20.6%
-
Total Operating Expenses w/o Pension True-Up 341,679 394,990 471,946 460,535 (11,410) -2.5% 76,956 19.5%
DRS Pension True-up Exp (47,462) (12,286) (23,572) - 23,572 (11,286) 91.9%
Total Operating Expenses w/ Pension True-Up 294,217 382,704 448,374 460,535 12,162 2.6% 65,670 17.2%
Operating Expenses – 2023 Actuals compared to 2023 Budget
• Full Year 2023 operating expenses were closely aligned to the Budget, ending the year 2.8% lower than budget
primarily due to the $24M pension credit.
• Operating expenses were 2.3% higher than budget before the pension credit, driven primarily by:
o Payroll over spent by $3.7M driven by increased overtime in the Fire and Maintenance Departments.
o Non-Payroll net over-ran by 7.7M with the major drivers that included: $6M higher spending in
Environmental Remediation Liability reserve adjustments, $6.7M higher spending from other Divisions
allocated to Aviation, lower Charges to Capital resulting in higher operating expenses by $8.5M due to
position vacancies (staffing capacity) and schedule changes in capital program work, and $6M higher
spending in other expenses. These over-runs were offset by under spending in Outside Services of approx.
$19.7M.
Operating Expenses – 2023 Actuals compared to 2022 Actuals
• Total Operating Expenses were $65.7M or 17.2% higher than prior year primarily driven by higher Payroll,
Outside Services, and Charges from Other Divisions.
13
II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
Aeronautical Business Unit Summary – Actuals
Actual vs. Budget Incr/(De cr)
Aeronautical NOI 2021 2022 2023 2023 Variance Change from 2022
($ in 000's)
Actual Actual Actual Budge t $ % $ %
Rate Base Revenues
Airfield Movement Area 88,061 118,240 142,797 141,938 859 0.6% 24,557 20.8%
Airfield Apron Area 17,146 17,211 26,118 29,330 (3,212) -11.0% 8,907 51.8%
Terminal Rents 184,625 220,399 251,892 270,513 (18,622) -6.9% 31,493 14.3%
Federal Inspection Services (FIS) 10,978 29,347 41,214 46,317 (5,103) -11.0% 11,866 40.4%
Total Rate Base Revenues 300,810 385,197 462,020 488,098 (26,078) -5.3% 76,823 19.9%
Airfield Commercial Area 16,702 17,343 17,677 16,850 826 4.9% 333 1.9%
Total Aeronautical Revenues 317,513 402,541 479,697 504,948 (25,251) -5.0% 77,156 19.2%
Total Aeronautical Expenses 203,573 261,574 310,451 320,649 10,198 3.2% 48,877 18.7%
Aeronautical NOI 113,940 140,967 169,246 184,300 (15,053) -8.2% 28,280 20.1%
Debt Service (80,554) (101,159) (146,807) (152,649) 5,842 -3.8% (45,648) 45.1%
Net Cash Flow 33,385 39,808 22,439 31,650 (9,211) -29.1% (17,369) -43.6%
Note: Aeronautical Expenses includes the DRS Pension Credit
Aeronautical – 2023 Actuals vs. 2023 Budget
• Net Operating Income was $15.1M or 8.2% lower than budget driven by under spending in Outside Services
and receiving a sizeable pension credit.
Aeronautical – 2023 Actuals vs. 2022 Actuals
• Net Operating Income was $28.3M or 20.1% higher than prior year’s primarily due to increased passenger
activity.
14
II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
Airline Rate Base Cost Drivers
Impact on Aero
Revenues
2023 2023 Budget vs Budget
$ in 000's Budget Actual $ %
O&M (1) 310,618 303,919 (6,699) -2.2%
Debt Service Before Offsets 234,463 221,864 (12,599) -5.4%
Debt Service PFC Offset (89,720) (85,598) 4,121 -4.6%
Federal Relief Grants Debt Service - (5,930) (5,930) 0.0%
Net Debt Service 144,743 130,336 (14,407) -10.0%
Amortization 35,561 35,353 (208) -0.6%
Space Vacancy (2,066) (1,512) 554 -26.8%
TSA Operating Grant and Other (758) (6,076) (5,317) 701.3%
Rate Base Revenues 488,098 462,020 (26,078) -5%
Commercial area 16,850 17,677 826 5%
Total Aero Revenues 504,948 479,697 (25,251) -5%
(1) O&M, Debt Service Gross, and Amortization do not include commercial area costs or
the international incentive expenses
2023 Actuals to 2023 Budget
• Rate Based Revenue $26.1M lower than budget:
o O&M – $6.7M lower primarily due to lower payroll costs including the Aero rate-based share of the 2023
pension credit as well as lower Outside Services spending, partially offset by higher Environmental
Remediation Liability expense related to Aero rate-based capital projects.
o Net Debt Service – $14.4M lower than budget in 2023 due to changes in capital project schedules (which
meant that certain new rate-based assets have not yet been placed into service), as well as the benefit of the
remaining available Federal Relief grants. These reductions in debt service were partially offset by slightly
lower than planned PFC offset.
o TSA Operating Grant and Other – $5.3M lower reflects higher offset to Aero revenue from insurance
reimbursement for property damage claims.
15
II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
Non-Aero Business Unit Summary - Actuals
Actual vs. Budget Incr/(De cr)
Non-Aeronautical NOI 2021 2022 2023 2023 Variance Change from 2022
($ in 000's)
Actual Actual Actual Budge t $ % $ %
Non-Aeronautical Revenues
Public Parking 64,104 88,899 110,990 96,768 14,222 14.7% 22,091 24.8%
Rental Cars 34,740 56,473 63,460 53,830 9,631 17.9% 6,988 12.4%
Ground Transportation 11,947 20,804 24,878 24,324 554 2.3% 4,074 19.6%
Airport Dining & Retail 35,565 36,581 65,952 64,270 1,682 2.6% 29,371 80.3%
Other 37,463 53,856 61,312 56,910 4,402 7.7% 7,456 13.8%
Total Non-Aeronautical Revenues 183,819 256,613 326,592 296,102 30,490 10.3% 69,980 27.3%
Total Non-Aeronautical Expenses 90,644 121,130 137,923 139,887 1,964 1.4% 16,793 13.9%
Non-Aeronautical NOI1 93,175 135,483 188,669 156,216 32,454 20.8% 53,186 39.3%
Less: CFC Surplus (6,834) - (7,686) (5,829) (1,857) 31.9% (7,686)
Adjusted Non-Aeronautical NOI 86,341 135,483 180,983 150,386 30,597 20.3% 45,500 33.6%
Debt Service (33,065) (27,096) (39,997) (34,094) (5,903) 17.3% (12,901) 47.6%
Net Cash Flow 53,276 108,387 140,986 116,293 24,693 21.2% 32,599 30.1%
Note: Non-Aeronautical Expenses includes the DRS Pension Credit
Non-Aeronautical – 2023 Actuals vs. 2022 Budget
• Non-Aeronautical net operating income (before reduction of CFC Surplus) was $32.5M or 20.8% higher than
budget primarily due to the improved performance in the Landside business areas, particularly in Parking with
strong performance due to higher tariff rates than prior year. Rental Car strong revenue performance reflects
higher rental rates due to continued shortage in rental vehicle availability.
Non-Aeronautical – 2023 Actuals vs. 2022 Actuals
• Non-Aeronautical net operating income (before reduction of CFC Surplus) was $53.2M or 39.3% higher
compared to prior year due to passenger levels improving to only down by 1.8% compared to 2019.
16
II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
D. CAPITAL RESULTS
Capital Variance
2023 2023 2023 Bud vs. Actual
$ in 000's Actual Budget POF $ %
C concourse Expansion (1) 33,654 49,625 31,996 15,971 32.2%
Perimeter Intrusion Detection (2) 11,093 22,312 20,978 11,219 50.3%
SEA Gateway (3) 64,070 53,747 152,567 (10,323) -19.2%
Checked Bag Recap/Optimization (4) 92,878 102,855 131,600 9,977 9.7%
MT Low Voltage Sys Upgrade (5) 15,907 24,000 24,425 8,093 33.7%
International Arrivals Fac-IAF (6) 3,288 10,700 11,479 7,412 69.3%
Concourse A Expansion (7) 25,576 32,455 46,110 6,879 21.2%
Fire Dept Apparatus Replace (8) - 5,000 2,500 5,000 100.0%
Airline Realignment (9) 8,923 4,272 18,948 (4,651) -108.8%
Art Pool (10) 601 5,250 5,250 4,649 88.6%
Upgrades STS Train Control (11) 15,735 20,342 28,422 4,607 22.6%
All Other 172,347 232,873 310,361 60,526 26.0%
Subtotal 444,072 563,432 784,636 119,360 21.2%
CIP Cashflow Mgmt Reserve - (77,860) (120,759) (77,860) 100.0%
Total Spending 444,072 485,572 663,877 41,500 8.5%
1. Cash flow has been updated to reflect GCCM design and construction phasing sequencing.
2. Delayed due to long lead items. Savings on bid quantities.
3. Alaska has caught up on invoice review/submission. Invoices that were assumed for 2024 were paid in 2023. Therefore,
NMTRP spent more in 2023 than budget.
4. SSAT work was delayed, reducing payments; Baseline assumed completion in Feb 2024, now Jun 202.
5. Electrical Equipment manufacturing delays, resulting in Contractor payment delays; Contractor not able to perform
work in the Central Power Center and adjacent spaces due to the delay in Lumen scope.
6. Projected Clark 2023 billing not realized, significant scope deductions and billing delays.
7. Negotiation delays. And TRA submittals are less than anticipation.
8. Fire apparatus procurement has been pushed out to future year. Other options are being reviewed.
9. Additional Design costs are anticipated due to additional design scope than planned at time of yearly budget
development, this caused a higher than anticipated cost for 2023.
10. Delays in contract execution with artists.
11. U00638-STS Fiber Project Delay due to Surety takeover of Fiber Contract due to Fiber Proj Contractor Insolvency, also
impacting U00535-STS ATC Contractor, thus 2023 spent was lower than 2023 baseline cashflow.
17
III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
III. MARITIME DIVISION
FINANCIAL SUMMARY
2021 2022 2023 2023 Actual vs. Budget Change from 2022
Vari ance
$ in 000's Ac tual Ac tual Ac tual Budget $ % $ %
Total Revenues 48,331 71,534 82,410 75,875 6,534 9% 10,875 15%
Total Operating Expenses 47,784 59,556 70,402 66,121 (4,281) -6% 10,846 18%
Net Operating Income 546 11,978 12,008 9,755 2,253 23% 29 0%
NOI Including Pension Adj 7,616 14,375 15,657 9,755 5,902 61% 1,282 9%
Capital Expenditures 18,923 21,949 21,935 32,313 10,378 32% (14) 0%
2023 Actuals vs. 2023 Budget
• Operating Revenues were $6.5M higher than budget:
o Grain $2.5M lower from reduction in volumes. Cruise $7.2M and Marinas $1.7M higher from increased
occupancy.
• Operating Expenses $4.3M higher than budget from $3.3M in unbudgeted one-time expense and higher legal,
equipment, and supplies expenses than budgeted.
• Net Operating Income $2.3M favorable to budget or $5.9M including favorable pension adjustment.
• Capital Spending were at 68% of $32.3M budget.
2023 Actuals vs. 2022 Actuals
• Operating Revenues were $10.9M higher than 2022 with higher Cruise occupancy & rates, partially offset by
lower grain volumes.
• Operating Expenses were $10.8M higher than 2022 actual driven primarily by increased represented and non-
represented wage rates and a net $2.1M increase in one-time expenses.
• Net Operating Income was $29K higher than 2022 actual.
Net Operating Income before Depreciation by Business
2022 2023 2023 Actual vs. Budget Change from 2022
Vari ance
$ in 000's Ac tual Ac tual Budget $ % $ %
Ship Canal Fishing & Operations (3,271) (3,771) (4,550) 778 17% (501) -15%
Elliott Bay Fishing & Commercial Operations (1,038) (2,827) (2,749) (79) -3% (1,790) NA
Recreational Boating (82) (507) 294 (801) -272% (424) 516%
Cruise 17,408 25,601 18,094 7,507 41% 8,193 47%
Grain 4,344 1,235 3,863 (2,628) -68% (3,109) -72%
Maritime Portfolio (3,954) (5,408) (5,143) (264) -5% (1,454) -37%
All Other (1,600) (2,226) (1,354) (872) 64% (626) -39%
Total Maritime 11,808 12,097 8,457 3,641 -43% 289 2%
18
III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
A. KEY PERFORMANCE METRICS
Cruise Passengers in 000’s
500
400 2022 Actual
300 2023 Budget
200 2023 Actual
100
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Grain Volume – Metric Tons in 000’s
700
600
2022 Actual
500
400 2023 Budget
300
2023 Actual
200
100
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
19
III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
B. OPERATING RESULTS
2021 2022 2023 2023 Actual vs. Budget Change from 2022
Vari ance
$ in 000's Ac tual Ac tual Ac tual Budget $ % $ %
Ship Canal Fishing & Operations 4,240 4,592 5,076 4,555 521 11% 484 11%
Elliott Bay Fishing & Commercial Operations 5,618 5,975 6,564 5,253 1,310 25% 589 10%
Recreational Boating 12,851 13,978 15,505 15,591 (86) -1% 1,527 11%
Cruise 9,517 30,469 41,726 34,445 7,281 21% 11,258 37%
Grain 6,112 5,792 3,356 5,814 (2,458) -42% (2,436) -42%
Maritime Portfolio Management 10,392 10,550 10,263 10,192 71 1% (287) -3%
Other 7 10 9 24 (15) NA (0) -5%
Pension Revenue Adjustment (408) 170 (90) 0 (90) NA (260) NA
Total Revenue 48,331 71,534 82,410 75,875 6,534 9% 10,875 15%
Expenses
Maritime (Excl. Maint) 13,951 17,669 18,691 18,200 (491) -3% 1,023 6%
Environmental Remediation 0 79 2,975 0 (2,975) 2,897 3678%
Economic Development 4,559 5,710 4,971 6,366 1,395 22% (739) -13%
Total Direct 18,510 23,458 26,638 24,566 (2,071) -8% 3,180 14%
Maintenance Expenses 11,326 13,213 15,830 14,087 (1,742) -12% 2,617 20%
Envir Services & Planning 2,018 3,078 3,814 3,853 39 1% 735 24%
Seaport Finance & Cost Recovery 1,163 1,087 1,291 1,342 52 4% 204 19%
Seaport Project Management 342 1,007 1,819 2,489 670 27% 812 81%
Total Support Services 14,849 18,385 22,753 21,771 (981) -5% 4,368 24%
IT 2,695 3,223 3,705 3,725 21 1% 481 15%
Police Expenses 3,064 3,662 5,348 4,781 (567) -12% 1,686 46%
External Relations 1,222 1,552 1,731 2,045 314 15% 179 12%
Other Central Services 7,109 8,908 10,019 8,869 (1,150) -13% 1,110 12%
Aviation Division / Other 336 368 209 363 153 42% (159) -43%
Total Central Services / Other 14,426 17,714 21,012 19,783 (1,228) -6% 3,298 19%
Total Expense before Pension Adjustment 47,784 59,556 70,402 66,121 (4,281) -6% 10,846 18%
Pension Expense Adjustment (7,070) (2,396) (3,649) 0 3,649 NA (1,253) -52%
Total Expense 40,714 57,160 66,753 66,121 (632) -1% 9,593 17%
NOI excluding Pension Adjustments 546 11,978 12,008 9,755 2,253 23% 29 0%
NOI Before Depreciation 7,616 14,375 15,657 9,755 5,902 61% 1,282 9%
Depreciation 17,718 17,980 18,193 17,456 (737) -4% 213 1%
NOI After Depreciation (10,101) (3,606) (2,536) (7,701) 5,165 67% 1,070 30%
2023 Actuals vs. 2023 Budget
• Operating Revenues were $6,534K higher than budget driven by:
o Ship Canal favorable $521K from higher occupancy related to the cancellation of Alaskan Crab Season.
o Elliott Bay Fishing higher by $1,310K due to favorable unplanned moorage.
o Recreational Boating $186K unfavorable.
o Cruise $7,281K higher from increased occupancy.
o Grain $2,458K unfavorable from lower volumes flowing to China.
o Maritime Portfolio Management $15K lower.
• Operating Expenses were $4,281 higher than budget:
o Direct Expenses were $2,071K higher than budget
Unbudgeted remediation costs of $2,975K related to construction at T91 berths 6&8 and the Maritime
Innovation Center.
Portfolio Management under budget by $1,270K from unspent tenant improvement and broker fees.
Cruise $190K over related to higher passenger counts driving up Port Valet expense.
Maritime Security was $423K lower from over-budgeted cruise-related activities and lack of special
events at T-91.
Maritime Marketing $438K below budget due to timing of spending and unspent Sea-trade booth.
20
III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
Elliott Bay Fishing and Commercial $227K under budget due to lower utility costs.
Divisional contingency open headcount vacancy factor created a $1,298K unfavorable variance.
Unbudgeted Capital to Expense of $327K
All other Direct Expenses net to $361K under budget.
o Total Support Services were $981K higher than budget due to significant increases in Marine Maintenance
equipment and materials cost as well as some unplanned apprenticeships.
o Total Central Services / Other were $1,228K higher than budget.
• Net Operating Income was $2.3M higher to budget or $5.9M higher when factoring in the pension credit.
2023 Actuals vs. 2022 Actuals
• Operating Revenues were $10.9M higher than 2022 due large increase in Cruise occupancy and increased rates
at marinas, offset by to lower Grain volumes & a change in Cruise P66 lease from expense to contra revenue.
• Operating Expenses were $10.8M higher than 2022 actual driven primarily by payroll increases at the support
and central services level and a net $2.1M increase in one-time expenses.
• Net Operating Income excluding pension impact was flat to 2022 actual.
C. CAPITAL RESULTS
2023 YTD 2023 Budget vs Forecast
2023 POF
Actual Budge t
$ %
$ in 000's
P66 Shore Power 10,770 8,817 15,390 (1,953) -22%
P66 Fender Overhaul 1,942 3,227 3,939 1,285 40%
MD Reserve 0 2,000 2,000 2,000 100%
Maritime Video Camera Pro 209 1,800 1,800 1,591 88%
T117 Restoration 988 1,263 30 275 22%
T91 Berth 6 & 8 Redev 945 1,193 734 248 21%
FT Maritime Innovation Center 778 1,103 3,297 325 29%
Cruise Upgrades COVID19 0 1,000 0 1,000 100%
MD Fleet 1,645 6,555 4,790 4,910 75%
MD Small Projects 834 3,368 1,443 2,534 75%
All Other Project 3,824 8,983 20,668 6,040 67%
Subtotal 21,935 39,309 54,091 18,255 46%
CIP Cashflow Mgmt Reserve 0 (6,996) (13,286) (6,996) 100.0%
Total Maritime 21,935 32,313 40,805 11,259 34.8%
% of Capital Budget 68% 100%
Note: POF (Plan of Finance) is the total estimated during the budget process.
Comments on Key Projects with Significant Variances
• P66 Fender Overhaul – Completion of NTP for construction took longer than expected, pushed cash flows to
2024.
• MD Video Camera – Design delayed to 2024 to continue investigation of Port's camera ecosystem to
determine best path forward.
• P66 Shore Power– Accelerated civil duct work and mobilization have shifted cash flows from 2024 into
current year. Overall project cost has not increased.
21
IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
IV. ECONOMIC DEVELOPMENT DIVISION
FINANCIAL SUMMARY
2021 2022 2023 2023 Actual vs. Budget Change from 2022
Vari ance
$ in 000's Ac tual Ac tual Ac tual Budget $ % $ %
Total Revenues 9,294 17,799 17,215 22,201 (4,986) -22% (584) -3%
Total Operating Expenses 20,560 24,213 26,661 30,149 3,488 12% 2,449 10%
Net Operating Income (11,266) (6,414) (9,446) (7,948) (1,498) -19% (3,033) 47%
NOI Including Pension Adj (8,870) (5,784) (8,279) (7,948) (330) -4% (2,494) -43%
Capital Expenditures 9,314 4,311 6,136 8,086 1,950 24% 1,825 42%
2023 Actual vs. 2023 Budget
• Operating Revenues $5M unfavorable to budget due to lower volumes at the Conference & Event Center.
• Operating Expenses $3.5M below budget due to variable cost impact of lower Conference Center volumes,
delayed hiring, and timing of tourism, offset by grant spending.
• Net Operating Income $1.5M below budget or $330K when including pension adjustment.
• Capital Spending was 76% of $8.1M budget.
2023 Actuals vs. 2022 Actuals
• Operating Revenues were $1.2M higher than 2022 with increases in Conference & Event Center along with
increased concession revenue at the Bell Street garage.
• Operating Expenses $2.7M higher than 2022 due to payroll increases and Conference & Event Center volumes
and change in the EDD Grants from 1yr to 2yr cycle.
• Net Operating Income was $1.5M lower than 2022 actual.
Net Operating Income before Depreciation by Business
2022 2023 2023 Actual vs. Budget Change from 2022
Vari ance
$ in 000's Ac tual Ac tual Budget $ % $ %
Portfolio Management (3,701) (2,173) (2,991) 817 27% 1,528 41%
Conference & Event Centers (501) (3,697) (1,994) (1,703) -85% (3,196) -637%
To ur is m (769) (1,026) (1,580) 554 35% (257) -33%
EDD Grants (105) (1,491) (1,500) 9 1% (1,387) 1326%
Env Grants/Remed Liab/ERC (708) 109 116 (7) -6% 817 115%
Total Econ Dev (5,784) (8,279) (7,948) (330) -4% (2,494) -43%
22
IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
A. OPERATING RESULTS
2021 2022 2023 2023 Actual vs. Budget Change from 2022
Vari ance
$ in 000's Ac tual Ac tual Ac tual Budget $ % $ %
Revenue 7,384 8,886 10,477 9,722 755 8% 1,592 18%
Conf & Event Centers 1,910 8,914 6,738 12,479 (5,741) -46% (2,176) -24%
Total Revenue 9,294 17,799 17,215 22,201 (4,986) -22% (584) -3%
Expenses
Portfolio Management 3,737 3,653 3,713 3,905 192 5% 59 2%
Conf & Event Centers 3,124 6,563 6,632 10,769 4,137 38% 69 1%
P69 Facilities Expenses 268 230 254 221 (33) -15% 24 10%
RE Dev & Planning 231 299 340 294 (46) -16% 41 14%
EconDev Expenses Other 736 1,058 1,736 1,200 (536) -45% 678 64%
Maintenance Expenses 3,769 3,836 3,498 3,303 (195) -6% (338) -9%
Maritime Expenses (Excl Maint) 862 1,223 1,501 1,811 310 17% 278 23%
Total EDD & Maritime Expenses 12,727 16,862 17,674 21,503 3,829 18% 811 5%
Diversity in Contracting 253 186 268 250 (18) -7% 82 44%
To ur is m 1,877 1,737 1,540 1,830 290 16% (197) -11%
EDD Grants 889 105 1,491 1,150 (341) -30% 1,387 1326%
Total EDD Initiatives 3,019 2,028 3,300 3,230 (70) -2% 1,272 63%
Environmental & Sustainability 24 30 53 83 30 36% 23 76%
Police Expenses 205 240 288 258 (30) -12% 48 20%
Other Central Services 4,408 4,906 5,206 4,938 (268) -5% 300 6%
Aviation Division 177 147 141 138 (3) -2% (5) -4%
Total Central Services & Aviation 4,814 5,323 5,688 5,417 (271) -5% 365 7%
0
Total Expense before Pension Adjustment 20,560 24,213 26,661 30,149 3,488 12% 2,449 10%
Pension Expense Adjustment (2,396) (629) (1,168) 0 1,168 NA (538) -86%
Total Expense 18,164 23,584 25,494 30,149 4,655 15% 1,910 8%
NOI Before Depreciation (8,870) (5,784) (8,279) (7,948) (330) -4% (2,494) -43%
Depreciation 3,841 3,954 4,132 3,982 (150) -4% 179 5%
NOI After Depreciation (12,711) (9,738) (12,411) (11,930) (481) -4% (2,673) -27%
2023 Actuals vs. 2023 Budget
• Operating Revenues were $4,986K unfavorable to budget due primarily to unexpected cancellations at the
Conference and Event Center, partially offset by favorable concession revenue at Bell Street Garage.
• Operating Expenses were $3,488 below budget:
o Portfolio Management $192K lower from open positions.
o Conference and Event Center $4,137K below from lower activity.
o Economic Dev. Other over budget $536K from $225K Maritime Blue budgeted in EDD grants and the
headcount vacancy factor.
o Maintenance expenses $195K higher due to higher cost of equipment and supplies.
o Maritime $310K lower from project deferrals.
o EDD Initiatives $70K above budget due to timing of Tourism and EDD Grant spending along with $225K
budgeted in EDD Grants but booked in Economic Dev. Other
o Other Central Services $268K above budget due to legal and corporate contingencies.
o All other expenses net to $82K over budget.
• Net Operating Income was $1,498K below budget excluding pension adjustment.
2023 Actuals vs. 2022 Actuals
• Operating Revenues were $584K lower than 2022 actual from increased competition in the conference and
event centers.
• Operating Expenses were $2,449K higher than 2022 actual:
o EDD Other expenses up $678K from studies, full staff, and Maritime Blue.
o EDD Grants up $1,387K from second year of two-year cycle change.
23
IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
o Tourism $197K lower than 2022 due to prior year payment for Washington Tourism Alliance program.
o Central services up $365K from increased payroll
o All other Expenses net to $216K higher than 2022.
• Net Operating Income was $3,033K lower than 2022 actual when adjusting for pension credit.
B. CAPITAL RESULTS
2023 2023
2023 POF Budget vs. Actual
Actual Budge t
$ in 000's $ %
T91 Uplands Dev Phase I 1,631 2,204 1,682 573 26%
WTCW Roof Replacement 1,659 1,841 1,003 182 10%
P69 Underdock Utility Rpl 1,787 999 547 (788) -79%
CW Bridge Elev Modernizat 261 480 7 219 46%
P66 Roof Upgrades 157 341 556 184 54%
P66 BHICC Interior Modern 0 276 0 276 100%
P69 3rd Floor Terrace Rep 0 262 262 262 100%
P69 and P66 Public Video 33 250 250 217 87%
Tenant Improvements - Capi 0 202 300 202 100%
T91 Ped Path and Bike Bri 38 150 300 112 75%
All Other Projects 570 3,274 3,780 2,709 83%
Subtotal 6,136 10,279 8,687 4,148 40%
CIP Cashflow Mgmt Reserve 0 (2,193) (1,950) (2,193) 100%
Total Economic Development 6,136 8,086 6,737 1,955 24%
% of Capital Budget 76% 100%
Note: POF (Plan of Finance) is the total estimated during the budget process.
Comments on Key Projects
• T91 Uplands - Cash flows pushed out to 2024 due to design contract delays.
• P69 BHICC– $276k for pending claim resolution no longer needed.
• All Other Projects - Mostly small cap projects pushed out to 2024 (PM constraints, LED projects).
24
V. CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
V. CENTRAL SERVICES DIVISION
FINANCIAL SUMMARY
$ in 000's Actual Budge t Variance
Revenues (216) 155 (371)
Core Central Services 115,169 109,752 (5,417)
P olic e 41,164 36,673 (4,490)
Engineering/PCS 14,241 16,478 2,237
Total O&M Expenses w/o Pension True-up 170,574 162,903 (7,671)
DRS Pension True-up Credit (14,479) - 14,479
Total O&M Expenses with Pension True-up 156,094 162,903 6,809
Capital Spending 8,250 13,178 4,928
2023 Actuals vs. 2023 Budget
• Operating Revenues unfavorable by $324K primarily due to L2 Pension Contra Revenue.
• Operating Expenses $7.7M unfavorable to budget mainly due to higher Outside Legal Expense, unanticipated
Litigated Injuries & Damages, and less Charges to Capital Projects.
2023 Actuals vs. 2022 Actuals
• Operating Revenues $2.8M below 2022 primarily due to L2 Pension Contra Revenue.
• Operating Expenses $29.0M higher than 2022 mainly due to higher Payroll, Outside Services, Promotional
Expenses; offset by and higher charges to Capital Projects.
A. BUSINESS EVENTS
• Sponsored key community and business events including Eastside Leadership Conference, Sports Commission
Women in Leadership Breakfast, Eastside Economic Forecast Summit, Pacific Marine Expo Economic
Forecast Breakfast, Kirkland Chamber Awards, Visit Seattle Holiday Brunch, and Propeller Club Holiday
Luncheon.
• Hosted community engagement events to further Port objectives including South Seattle Community/Multi-
Agency Roundtable, End of Cruise Season Celebration with CLIA, Land Stewardship/Tree Replacement
Webinar, Green Corridor First Movers in-person meeting, and a Community Tree Planting work party near
SEA.
• Held numerous Career Awareness Programs including RAHS Career Panel and Airfield Tour, Aeronautical
Science Pathways Build Your Own Airport, Young Entrepreneur Challenge with HSD, Lake WA Adventure
School Airport Tour.
• Launched an escalator safety campaign via owned and earned media to promote safe escalator use at SEA.
• Hosted a South Seattle Multi-Agency Community Roundtable in Beacon Hill.
• Attended and delivered remarks at the Seattle Chamber Regional Leadership Conference.
• Attended AWB Trade Mission to Mexico with Lt. Governor
• Convened a government-to-government meeting with the Muckleshoot Indian Tribal Council.
• Supported Commissioners at NW Offshore Wind Supply Chain Summit
• Hosted graduation event for the inaugural Youth Maritime Career Launch class of 37 youth.
• Police Department successfully completed the Y2 CALEA assessment review. The Port of Seattle Police
Department is one of eight police departments to be accredited through CALEA.
• Held several workshops, including Addressing Anti-Semitism in the Workplace, Understanding Transgender
Equity, Implicit Bias & Microaggressions, A Conversation about the Impacts of Gaza, Parts 1 and 2.
25
V. CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
KEY PERFORMANCE METRICS
Century Agenda Strategic Objectives 2021 2022 2023
Responsibly Invest in the Economic Growth of the Region and all its Communities
A. Job seekers placed in jobs at SEA Airport through the Employment Center 1,211 1,479 1,594
B. Number of SEA Airport tenants supported in finding employees 80 94 93
C. Employment Center training completions 166 573 1,012
D. K-12 Career Connected Learning: WFD engagement with teachers/faculty 1,600 0 12
E. Community members entering employment in construction, maritime and
42 53 70
environmental sustainability
F. Number of Job Openings Posted 441 355 336
G. Job applications received 10,355 13,990 18,830
H. Number of job interviews conducted 1,533 2,461 2,333
I. Number of new employees hired 317 557 495
J. Number of interns 114 104 133
K. Number of Veteran Fellows 5 6 5
L. Number of employees participating in Tuition Reimbursement 37 25 15
Become a Model for Equity, Diversity and Inclusion
A. Employee participation in OEDI programming (Caucuses, Book Clubs,
1879 2229 2,907
Town Halls, etc.)
Be a Highly Effective Public Agency
A. Central Services costs as a % of Total Operating Expenses 25.5% 27.8% 27.4%
B. Investment portfolio earnings versus the benchmark (the Bank of America 0.67%/ 2.62%/ 3.70%/
Merrill Lynch 1-3 Year US Treasury & Agency Index) 0.69% 4.5% 4.34%
C. Comply with Public Disclosure Act and respond in a timely manner 637 803 1,204
D. Percent of annual audit work plan completed each year 100% 100% 100%
E. Employee Development Class Attendees/Structured Learning 2,423 2,868 3,289
F. Total Recordable Incident Rate (previous Occupational Injury Rate) 4.8 3.72 4.16
G. Lost Work Day Rate (previously Days Away Severity Rate) 62.50 79.47 72.41
H. Customer Survey for Police Service Excellent or Above Average 100% 90% TBD
26
V. CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
B. OPERATING RESULTS
Financial Summary
Actual vs. Budget Change from 2022
2021 2022 2023 2023 Variance Incr (Decr)
$ in 000's Actual Actual Actual Budge t $ % $ %
Total Revenues (233) 2,538 (216) 155 (371) -239.3% (2,754) -108.5%
Executive 2,472 2,218 3,307 3,678 371 10.1% 1,089 49.1%
Commission 2,093 2,360 2,623 2,905 282 9.7% 263 11.1%
Legal 7,718 8,540 10,887 5,079 (5,808) -114.3% 2,347 27.5%
External Relations 8,037 9,215 10,781 12,333 1,552 12.6% 1,566 17.0%
Equity Diversity and Inclusion 5,180 4,406 5,641 6,953 1,312 18.9% 1,235 28.0%
Human Resources 10,335 11,921 14,914 16,049 1,135 7.1% 2,993 25.1%
Labor Relations 1,373 1,177 1,417 1,600 183 11.4% 240 20.4%
Internal Audit 1,646 2,565 2,120 2,047 (72) -3.5% (445) -17.4%
Accounting & Financial Reporting Services 8,699 8,672 9,891 10,344 453 4.4% 1,219 14.1%
Information & Communication Technology 24,162 27,535 30,682 30,419 (263) -0.9% 3,147 11.4%
Information Security 1,636 1,703 2,312 2,794 483 17.3% 608 35.7%
Finance & Budget 2,292 2,499 2,868 2,765 (103) -3.7% 370 14.8%
Business Intelligence 1,130 1,496 1,773 2,072 298 14.4% 277 18.5%
Risk Services 4,165 5,144 5,890 5,749 (141) -2.5% 746 14.5%
Office of Strategic Initiatives 893 974 1,396 1,471 75 5.1% 421 43.3%
Central Procurement Office 4,986 6,494 7,728 8,021 293 3.6% 1,235 19.0%
Contingency (123) (268) (251) (6,579) (6,328) 96.2% 17 -6.4%
Core Central Support Services 86,694 96,652 113,979 107,702 (6,278) -5.8% 17,327 17.9%
P olic e 28,678 33,487 41,164 36,673 (4,490) -12.2% 7,676 22.9%
Total Before Cap Dev & Environment 115,372 130,140 155,143 144,375 (10,768) -7.5% 25,003 19.2%
Capital Development
Engineering 5,403 6,654 8,254 9,497 1,244 13.1% 1,600 24.0%
Port Construction Services 3,988 3,939 5,987 6,980 993 14.2% 2,048 52.0%
Sub-Total 9,391 10,593 14,241 16,478 2,237 13.6% 3,649 34.4%
Environment & Sustainability
Environment & Sustainability 758 795 1,189 2,050 861 42.0% 394 49.5%
Sub-Total 758 795 1,189 2,050 913 44.5% 394 49.5%
Industrial Development Corporation - - 1 - (1) 0.0% 1 0.0%
Capital to Expense - 56 - - - 0.0% (56) -100.0%
TOTAL w/o DRS Pension True-up 125,521 141,583 170,574 162,903 (7,671) -4.7% 28,991 20.5%
DRS Pension True-up Credit (29,768) (6,666) (14,479) - 14,479 0.0% (7,814) 117.2%
TOTAL w/ DRS Pension True-up 95,753 134,917 156,094 162,903 6,809 4.2% 21,177 15.7%
27
V. CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
2023 Actuals vs. 2023 Budget
Excluding the DRS Pension Credit, Operating Expenses for 2023 were $7.7M above Budget due primarily to:
• Executive – favorable variance of $371K primarily due to lower Payroll of $457K and Outside Services of
$23K; partially offset by higher Promotional Expenses of $138K.
• Commission – favorable variance of $282K primarily due to lower Payroll of $331K; offset by higher Outside
Services of $35K and Travel of $21K.
• Legal – unfavorable variance of $5.8M due to higher Outside Services of $3.9M, Payroll of $188K, General
Expenses of $1.8M, and less charges to Capital Projects of $150K.
• External Relations – favorable variance of $1.6M primarily due to lower Outside Services of $766K, Payroll
of $392K, Travel of $135K, General Expenses of $158K, and Promotional Expenses of $137K.
• Equity, Diversity, and Inclusion – favorable variance of $1.3M primarily due to lower Outside Services of
$785K, Payroll of $513K, and General Expenses of $53K; partially offset by higher Promotional Expenses of
$39K.
• Human Resources – favorable variance of $1.1M primarily due to lower Payroll of $1.5M, Outside Services
of $106K and Travel of $213K; offset by higher General Expenses of $1.0M.
• Labor Relations – favorable variance of $183K primarily due to lower Payroll of $158K and Travel of $17K.
• Internal Audit – unfavorable variance of $72K primarily due to higher General Expenses of $237K and lower
charges to Capital Projects of $139K; partially offset by lower Payroll of $215K and Outside Services of
$79K.
• Accounting and Financial Reporting Services – favorable variance of $453K primarily due to lower Payroll
of $447K.
• Information & Communication Technology – unfavorable variance of $263K due to lower charges to
Capital Projects of $909K and higher Outside Services of $77K; offset by lower Payroll of $470K, Equipment
of $222K, and Travel of $79K.
• Information Security – favorable variance of $483K primarily due to lower Payroll of $100K, Outside
Services of $331K, and Travel of $32K.
• Corporate Finance & Budget – unfavorable variance of $103K primarily due to higher Payroll of $82K and
Travel of $33K.
• Business Intelligence – favorable variance of $298K primarily due to lower Payroll of $55K, Outside Services
of $175K, and Travel of $67K.
• Risk Services – unfavorable variance of $141K due to higher Insurance Expense of $234K; partially offset by
lower Outside Services of $83K.
• Office of Strategic Initiative – favorable variance of $75K primarily due to lower Payroll of $33K, Outside
Services of $22K, and Travel of $16K.
• Central Procurement Office – favorable variance of $293K primarily due to lower Payroll of $112K,
Supplies of $39K, Travel of $95K, and General Expenses of $94K; partially offset by higher Equipment
Expense of $60K.
• Police – unfavorable variance of $4.5M primarily due to higher Payroll of $2M, Outside Services of $1.6M,
Equipment of $389K, Supplies of $357K, and General Expenses of $658K; partially offset by lower Travel of
$184K, and Worker’s Comp of $189K.
• Engineering – favorable variance of $1.2M primarily due to lower Payroll of $1.2M, Outside Services of
$1.4M, Property Rentals of $758K, and Travel of $142K; partially offset by higher General Expenses of
$673K, and Lower charges to Capital Projects of $1.8M.
• PCS – favorable variance of $993K primarily due to lower Payroll of $2.0M, Equipment Expense of $58K,
and General Expenses of $51K; partially offset by higher Outside Services of $807K and Supplies of $284K.
• Environment & Sustainability Admin – favorable variance of $861K primarily due to lower Outside
Services of $703K and Payroll of $159K; partially offset by higher Travel of $40K.
• Contingency – unfavorable variance of $6.3M due to Vacancy Factor actuals in departments.
28
V. CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/23
2023 Actuals vs. 2022 Actuals
• Operating Expenses without DRS Pension True-up for 2023 were $29.0M higher than 2022 actuals mainly due
to:
o Core Central Support Services – $17.7M higher than 2022 primarily due to: higher payroll for current
employees and new positions as well as full year salaries for mid-year 2022 positions; contractual
increases; addition of new initiatives to support growing needs of the organization.
o Police – $7.7M above 2022 due to: increase in salary and benefits for represented groups based on new
contracts, new positions, vacant positions in 2022, and addition of new initiatives to enhance the safety and
security of the public.
o Capital Development – $3.6M higher than 2022 primarily due to higher payroll and addition of new
positions as well as contractual increases to support the capital program.
C. CAPITAL RESULTS
2023 2023 2023 Budget Variance
$ in 000's Actual Budget POF $ %
Engineering Fleet Replacement 585 3,065 1,600 2,480 80.9%
Corporate Fleet Replacement 1,063 1,836 1,274 773 42.1%
Infrastructure - Small Cap 726 1,865 1,500 1,139 61.1%
Services Tech - Small Cap 1,377 1,500 1,500 123 8.2%
Enterprise Network Refresh 1,190 1,603 2,000 413 25.8%
Office Wi-Fi Refresh 361 964 1,077 603 62.6%
Phone System Upgrade 710 862 120 152 17.6%
Radio Microwave Redund. Loop 227 760 1,000 533 70.1%
Storage Area Network Refresh 481 750 750 269 35.9%
Other (note 1) 1,530 5,573 6,738 4,043 72.5%
Subtotal 8,250 18,778 17,559 10,528 56.1%
CIP Cashflow Adjustment - (5,600) (5,600) (5,600) 100.0%
TOTAL 8,250 13,178 11,959 4,928 37.4%
Note:
(1) "Other" includes remaining ICT projects and small capital projects/acquisitions.
29
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