6b supp

Item No.:              6b_Supp_1 
Meeting Date:          November 24, 2015 
Port of Seattle 
2016 Preliminary Budget 
Second Reading & Final Passage 
November 24, 2015

Outline 
2016 Budget Process Recap 
2016 Budget Highlights 
2016 Key Budget Drivers 
Changes made since the first budget reading 
Proposed 2016 Operating Budget 
Proposed 2016 Comprehensive Op & Non-Op Budget 
Proposed 2016 FTEs Summary 
Proposed 2016-2020 Capital Budget 
Proposed 2016 Sources and Uses of Funds 
Proposed 2016 Tax Levy 
Remaining 2016 Budget Schedule 

2

2016 Budget Process 
May 12    2016 Business Plan and Budget Process Briefing 
May 26   2016 Aviation Division Business Plan Discussion 
Jul. 9      2016 Maritime Division Business Plans Discussion 
Sept. 8     2016 Economic Development Division Business Plan Discussion 
Sept. 8     2016 Key Budget Assumptions Briefing 
Sept. 22   2016 Corporate Budget Briefing 
Oct. 13    2016 Operating Division Budgets Briefing 
Oct. 20    Preliminary Budget Document to the Commission 
Oct. 22    Preliminary Budget released to the Public 
Oct. 27    Preliminary Tax Levy and Draft Plan of Finance Briefing 
Nov. 10    First Reading & Public Hearing of the Preliminary Budget 
Nov. 24    Second Reading & Final Passage of the Preliminary Budget 
Dec. 3     File Statutory Budget with King County 
Dec. 11    Release the Final Budget and Draft Plan of Finance 

A long and challenging budget process this year due to re-org and the new NWSA. 
3

2016 Budget Highlights 
Operating revenues are budgeted at $584.6M, $32.8M or 5.9% higher
than 2015 budget 
Operating expenses are budgeted at $336.0M, $3.1M or 0.9% increase
from 2015 budget (largely due to transfer of some expenses to the
NWSA) 
Net Operating Income is budgeted at $248.6M, $29.7M or 13.6% above
2015 budget 
The 2016 capital budget is $408.4M and the 5-year capital spending
plan is $2.2 billion 
The proposed tax levy for 2016 is $72.0M, $1.0M reduction from 2015. 

The 2016 budget reflects strong growth and continued investments for the region. 
4

2016 Key Budget Drivers - Aviation 
Finalizing the Airport Master Plan (SAMP), initiating environmental
review, and planning for new projects 
Increasing janitorial services due to strong passenger growth 
Land development to generate additional revenue 
5 year capital spending of $2 billion, including NorthSTAR Program,
International Arrivals Facility, Baggage Recapitalization/
Optimization, Runway 16C/34C Reconstruction, and the new South
Satellite Project 


The 2016 key initiatives support strong growth at the Airport and continued
investments for the region. 
5

2016 Key Budget Drivers  Maritime & EDD 
Additional funding for Real Estate Strategic Plan, Opportunity Fund,
and Small Business development 
Expanded Workforce Development initiatives, including Airport Career
Pathways, Core Plus, and Small Business Generator program 
Increased Tourism funding 
New Storm Water Utility operational model and infrastructure
assessment 
5 year capital spending of $136 million including expansion of the P66
Cruise Terminal, new restrooms at Shilshole Bay Marina, and $34
million of renewal and replacement projects at Fishermen's Terminal 

The 2016 key initiatives reflect continued support for the community and
investments for the region. 
6

2016 Workforce Development Budget 
$'s Thousands
Office of Social Responsibility 
'16-'15
2015 Budget    2016 Budget      Change
New Requests
1. Comprehensive Career Pathways - Strategic Investments                   0        1,025       1,025
1a.   Airport Career Pathways Mapping & Strategy                      0          75         75
1b.  Airport Career Pathways Implementation (Year 1)                  0         100        100
1c.   Maritime Workforce Development Initial Strategy                    0          150         150
1d.  Core Plus (High School to Industry/Post Secondary Transition           0         200        200
1e.   Trades Regional Partnership                                0          350        350
1f.   Manufacturing Industry/Truck Driving                               0           150         150
2. Port Jobs Six Month Contract Extension                             100          50        (50)
Continuing
Workforce Development Airport Sector                           410         450        40
Workforce Development Construction Sector                       200         260        60
Total                                                     710         1,785       1,075

Developing capable employees for key industries. 
7

2016 Key Budget Drivers - Corporate 
High Performance Organization/Operational Excellence 
Purchasing optimization initiative 
Increased resources for LEAN/CPI program 
Talent Management initiative, implementation of new ePerformance 
System 
Expanded Strategic communications and outreach 


The 2016 budget includes key initiatives for high performance organization and
The 2016 budget reflects strong growth and continued investments for the region. 
operational excellence. 
8

Changes from the First Budget Reading 
Updated the budget to reflect the 6 month extension of the Port Jobs
contract for the Apprenticeship Opportunity Program ($100K). 
Revised funding of Workforce Development initiatives to the Tax Levy,
resulting in lower cost allocations to other divisions. 
Reduced the tax levy from $73.0M to $72.0M for 2016. 



Reduce tax levy to $72M per Commission direction. 
9

2016 Operating Budget 
2014    2015    2015    2016   Budget Change
($ in '000s)                        Actual    Budget  Forecast    Budget       $ %
Operating Revenues
Aeronautical                 228,864   242,352   232,534   261,019  18,667   7.7%
SLOA III Incentive Adj.              -3,576    -3,576    -3,576    -3,576      0   0.0%
Non-Aeronautical             180,791  188,465  194,832  208,321  19,855  10.5%
Aviation                      406,079   427,242   423,790   465,764  38,522   9.0%
Maritime                    43,790   47,264   44,864   49,314   2,050   4.3%
Economic Development           16,267   16,108   17,029   13,745  -2,363  -14.7%
Licensed NWSA Assets             68,413   60,812   66,712      0  -60,812 -100.0%
NWSA Distributable Revenue            0      0      0   51,829  51,829   N/A
Other                        389     340    3,159    3,926   3,586 1056.0%
Total                        534,938   551,766   555,554   584,578  32,812   5.9%
Operating Expenses
Aviation                      230,704   248,141   239,564   268,216  20,075   8.1%
Maritime                    31,854   36,683   34,661   42,261   5,577  15.2%
Economic Development           23,546   21,188   20,078   23,309   2,120  10.0%
Licensed NWSA Assets             22,840   26,562   27,262     121  -26,441  -99.5%
Other                        389     340    2,040    2,103   1,764 519.4%
Total                        309,334   332,914   323,605   336,010   3,096   0.9%
Net Operating Income             225,605  218,852  231,949  248,568  29,716  13.6%
NOI in the proposed 2016 budget is $29.7M or 13.6% higher than 2015 budget. 
10

2016 Comprehensive Budget Summary 
2014    2015    2016   Budget Change
($ in '000s)                        Actual   Budget   Budget        $ %                   Explanations
Revenues
1. Aeronautical Revenues             228,864   242,352  261,019   18,667    7.7% Cost recovery under SLOA III.
2. SLOA III Incentive                  (3,576)   (3,576)   (3,576)       ()   0.0%
3. Other Operating Revenues          309,650   312,989  327,135   14,145    4.5% Mainly due to higher revenues from the Airport.
4. Tax Levy                        72,801   73,000   72,000   (1,000)  -1.4% Reduced to $72M per the Commission's direction.
5. PFCs                           69,803   73,752   84,650   10,898   14.8% Higher enplanements in 2016.
6. CFC Non-Op Revenue for Debt Service   19,889   23,614   24,963    1,349    5.7% Driven by increased debt service on 2009B bond.
7. Fuel Hydrant                      6,935    7,202    7,098     (104)  -1.4%
8. Non-Capital Grants and Donations      10,158    6,263    3,566   (2,697)  -43.1% Lower grants for Clean Truck Program in 2016.
9. Capital Contributions               16,746   40,949   23,406   (17,543)  -42.8% Lower due to the $25M 16C LOI will be fully claimed in 2015.
10. Interest Income                 11,202    7,094    8,537    1,443  20.3%
Total                       742,473        783,639  808,799         25,160   3.2%
Expenses
1. O&M Expense                   309,334   332,914  336,010    3,096    0.9% New initiatives and average pay increase.
2. Depreciation                    166,337   162,082  162,451     370       0.2%
3. Revenue Bond Interest Expense       108,910   133,468  121,423   (12,045)  -9.0% 2015 revenue bond interest expense budgeted conservatively.
4. GO Bond Interest Expense            9,475   14,706   14,726      20    0.1%
5. PFC Bond Interest Expense            5,906    5,633    5,302     (331)  -5.9%
6. Non-Op Environmental Expense        9,142    5,600    5,000     (600)  -10.7%
7. Public Expense                     6,854    9,572    8,898     (674)  -7.0% Driven by final year of Clean Truck Program.
8. Other Non-Op Rev/Expense          (2,110)    3,657    3,319     (338)  -9.2%
Subtotal                     613,849  667,632  657,130  (10,502)  -1.6%
9. Special Item - -  147,700  147,700    n/a Second installment for AWV contribution.
Total                       613,849        667,632  804,830        137,198  20.5%
Change In Net Assets             128,624        116,007    3,969  (112,039) -96.6%
2016 budget includes a $147.7M second installment for AWV contribution. 
11

FTEs Summary 
Aviation   Seaport Real Estate Corp&CD    Total
2015 Budget                    877.0     59.7       166.0   750.7   1,853.4
A. Reorganization - 
External Transfers To NWSA -     (19.0)    - (1.0)     (20.0)
Internal Transfers                  (2.0)    144.5    (135.5)     (7.0)    - 
Subtotal                      875.0    185.2     30.5       742.7   1,833.4
Adjusted Organizational Structure       Aviation  Maritime     EDD Corp&CD     Total
875.0    185.2     30.5       742.7   1,833.4
B. Mid Year Changes in 2015
1 Mid Year Approvals           16.0     4.5     1.0     6.2       27.7 
2 Eliminated FTE's             (10.2)    (6.1)    (1.0)    (2.0)   (19.3)
Subtotal                     5.8     (1.6)    - 4.2        8.4
C. 2016 Changes
1 Eliminated FTE's             (2.0)    (1.0)    - (11.0)       (14.0)
2 New FTE's                14.0     1.0     3.3     9.5       28.8 
Subtotal                    12.0    - 3.3        (1.5)     14.8 
2016 Budget*                   892.8    183.6     33.8       745.4   1,856.6
*Note: The 2016 proposed budget includes one new FTE for Stormwater Utility.
Moderate FTEs growth driven mainly by the strong traffic growth at the Airport. 
12

Capital Budget Summary 
Capital Budget Summary by Division 

$'s in 000's          2016      2017      2018      2019      2020     2016-20
Aviation          360,064   456,890   453,575   416,085   363,074  2,049,688
Maritime          27,480   21,112   24,621   24,637   13,796   111,646 
Economic Dev.     12,458    3,650    2,285    2,104    4,104    24,601
Corporate         8,443    8,686    8,707    8,307    8,230    42,373
Total            408,445   490,338   489,188   451,133   389,204  2,228,308

The Port continues to invest in the region with a 5-year capital plan of $2.2 billion. 

13

Capital Budget Summary 
Capital Budget Summary by Category 
$'s in 000's                      2016    2017    2018    2019    2020    2016-20
Commission Authorized/Underway  319,638  382,542  396,504  334,148  182,714  1,615,546
Pending 2015/2016 Authorization    28,017  17,669        8,030    250     -     53,966 
Pending Future Authorization        4,956       13,148       24,358       28,343       18,880         89,685 
Small Capital Projects             15,062   13,753        11,997        11,662        12,650         65,124 
Total                      367,673  427,112  440,889  374,403  214,244  1,824,321
Allowance CIPs and Other*        40,772  63,226       48,299       76,730      174,960   403,987
Total                      408,445  490,338  489,188  451,133  389,204  2,228,308
* Allowance CIPs represent undesignated future spending for future new projects and 
potential budget increases for existing projects in Aviation division.

14

Sources of Funds 
Rental Car Customer   Fuel Hydrant Receipts 
Passenger Facility                                Other Receipts 
Facility Charges            0.8% 
Charges                                    0.1% 
2.8% 
9.4% 
Grants and Capital
Contributions      Tax Levy 
3.0%         8.0% 

Proceeds from Bond
Issues 
10.0%                          Operating Revenues 
65.0% 

Interest Receipts 
0.9% 


Tax Levy is 8.0% of the $900 million total sources of funds in 2016 budget. 
15

Uses of Funds 
Capital Expenditures 
32.2% 
Total Operating Expenses 
26.5% 

Interest Payments 
12.1% 
Special Item 
11.7%                 Bond Redemptions 
13.0% 


Public Expense 
0.7% 
Total Uses : $1,266.8M 
NWSA Contributions   Other Expenses 
3.1%            0.7% 

The Port continues to invest in capital projects and infrastructure for the region. 
16

Net Operating Income Comparison 



A record high of $248.6M Net Operating Income in the 2016 budget. 
17

2016 Tax Levy 
Tax Levy Amount: 
Levy amount established by the Commission each year
as part of the budget process 
The maximum allowable levy for 2016 is estimated to be
$96.4 million 
The levy for 2016 is proposed to be $72.0 million 
Projected rate change (from $0.1891 to $0.1704) 


Tax levy was flat at $73M for 4 years and proposed to lower it to $72M for 2016. 
18

2016 Tax Levy 
Proposed 2016 Tax Levy Uses: 
General Obligation (G.O.) Bonds Debt Service 
Legacy Environmental Remediation 
Highline School NOISE Mitigation 
Pier 66 Redevelopment for cruise growth 
Capital projects in support of the fishing industry 
Additional Deposit to the Transportation & Infrastructure Fund for Regional
Transportation & Freight Mobility projects - $21.3 million 
Heavy Haul Corridor projects 
Other regional transportation initiatives (FAST II, E. Marginal Way, Argo Access) 
Workforce Development funding - $1.5 million in 2016 


Tax levy uses include strategic initiatives 
19

2016 Tax Levy Sources & Uses 
2016 Tax Levy Sources & Uses ($ mil.)
Sources                             2016 Budget
Beginning Balance                         57.7
Annual Levy                             72.0
Tsubota Sale                              8.0
Total                                137.7 
Uses
G.O. Debt Service - existing                      34.5
G.O. Debt Service - SR99 Tunnel                  3.6
Environmental Remediation                   7.0
Transportation & Infrastructure Contribution         21.3
Workforce Development                    1.5
Highline Schools Noise Mitigation                 -
Approved CIP - P66 Cruise                     12.0
Proposed CIP - Fishing Industry                    4.0
Total                                 83.9
Ending Fund Balance                            53.8
Tax levy is reduced to $72 million in 2016 
20

Remaining Budget Schedule 
Statutory Budget Filed with King County     Dec. 3, 2015 
Release the Final Budget Document        Dec. 11, 2015 



21

Port of Seattle 
2016 Preliminary Budget 
Second Reading & Final Passage 
November 24, 2015

Limitations of Translatable Documents

PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.