CIP and Capital Funding
Pre-Budget Study Session Maritime and Economic Development CIP and Capital Funding July 24, 2018 1 2019-2023 Capital Improvement Plan (CIP) Process and Guidance Purpose Inform on Maritime and EDD capacity Opportunity to provide guidance Topics Funding Capacity Elizabeth Morrison Prioritization Process Tyler Cooley Summarization and feedback 2 Non-Airport Financial Trends Non-Airport NOI (before depreciation) has generally been trending downwards, leaving less cash flow available for investment after payment of revenue bond debt service NWSA is principal source of cash flow Maritime and EDD combined currently produce negative NOI 3 Cash Flow 2019-2023 Continues to be Challenged Operating Income NWSA is the primary source of Cash Flow after Debt Service 2019-2023 ($ mil.) net income Income from NWSA 269 Maritime net income 46 Revenue bond debt service is EDD net income (56) Debt service and adjustments (167) paid prior to capital investments Available for capital 92 Preliminary based on the 2018 budget forecast 4 Forecast Tax Levy* Uses 2019-2023 The Port anticipates investing nearly $100 million in a number of community investments and more than $300 million in capital investments for facilities that support the maritime industries * Based on $72 million annual tax levy 5 Preliminary* Estimate of $200 million for Maritime and EDD Capital Investment 2019-2023 (1) Includes potential Airport obligations not eligible for Airport Funds * Preliminary based on 2018 budget forecast 6 Capital Prioritization Process EDD and Maritime ($ in millions) $261M of projects considered Projects Underway Small Does not include other Projects/Fleet prospective projects Contingency Prioritization Process Funding Gap, $61 Projects Scored Century Agenda Higher Rated Renewal/Replacement On the bubble Projects Potential for New Revenue Following Initial Assessment Assumes $200M funding capacity $261 Million Total Leaves $61M of projects unfunded Note: Assumes current revenue and levy projections 7 2019 to 2023 Capital: Initial Assessment EDD and Maritime ($ in millions) Higher Rated Projects ($112.5M): Projects Small T91 Uplands Development Underway, $8.2 Projects/Fleet, T91 Berths 6 and 8 Lower Rated $12.8 Projects, $39.2 T117 Restoration Contingency, $11.7 FT Docks 3,4,5 Upgrade On the bubble - New T91 Cruise Gangway Shortfall, $21.8 "On the bubble" ($76.6M Total) ($54.8M Funded + $21.8 Shortfall) FT Redevelopment Phase I Higher Rated BHICC Interior Modernization On the bubble- Projects, Funded, $112.5 SaBM Docks D&E Replacement $54.8 P66 Shore Power Lower Rated Projects ($39.2M): Salmon Bay Uplands Development $261 Million Total T10 Dolphins Note: Assumes current revenue and levy projections Smaller projects not listed 8 2019 to 2023 CIP: Project Matrix Initial Assessment Criteria Additional Considerations Cost Century Renew/ Potential New Community & Waterfront Innovation Project Name ($m) Agenda Replace Revenue Environment Strategy District T91 Uplands Development $45.6 X X X X T-91 Berth 6 & 8 Redev $35.0 X X X FT Redevelopment Phase 1 $33.5 X X X X Salmon Bay Marina Uplands $20.5 X X T117 Restoration $17.9 X X X X X P66 Shore Power $15.0 X X X BHICC Interior Modernization $9.9 X X SaBM Docks DE Replacement $5.9 X X FT Docks 3,4 5 Fixed Pier Imp $4.9 X X X New Cruise Gangway at T91 $4.5 X X X Projects under $4M $35.6 Contingency/Fleet/Small Cap $32.7 Total $261 9 Tax Levy History Since 2008 2018 tax levy is $72 million flat or declining since 2008 Due to inflation since 2008, the real value of the tax levy is now worth $59 million Levy decreases and inflation reduced purchasing power since 2008 by $100 million Local inflation in 2017 was 3% 10 Discussion 11 2019 to 2023 Capital: Waterfront Strategy EDD and Maritime ($ in millions) Waterfront Strategy Projects Projects Small ($169.9M): Underway, $8.2 Projects/Fleet, $12.8 T91 Uplands Development Contingency, $9.1 T91 Berths 6 and 8 FT Redevelopment Phase I Unfunded Projects, $61 T117 Restoration P66 Shore Power FT Docks 3,4,5 Upgrade SaBM Docks D&E Replacement Waterfront P66 Shore Power Strategy Projects, New T91 Cruise Gangway $169.9 Unfunded Projects ($61M): BHICC Interior Modernization $261 Million Total Salmon Bay Uplands Development Note: Assumes current revenue and levy projections Smaller projects not listed 12 2019 to 2023 Capital: Renew & Replace EDD and Maritime ($ in millions) Renew & Replacement Projects Projects Small Underway, $8.2 Projects/Fleet, ($99.5M): $12.8 T91 Berths 6 and 8 Contingency, $11.7 T117 Restoration BHICC Interior Modernization Unfunded Projects, $61 FT Docks 3,4,5 Upgrade SaBM Docks D&E Replacement Renewal & Replacement Potentially Unfunded: Projects, Available for $99.5 Other Projects, T91 Uplands Development $67.8 FT Redevelopment Phase I Salmon Bay Uplands Development P66 Shore Power $261 Million Total New T91 Cruise Gangway Note: Assumes current revenue and levy projections Smaller projects not listed 13 2019 to 2023 Capital: Potential New Revenue* EDD and Maritime ($ in millions) Potential New Revenue*($139.5M): Projects Small T91 Uplands Development Underway, $8.2 Projects/Fleet, $12.8 FT Redevelopment Phase I Contingency, Salmon Bay Uplands Development $11.7 T117 Restoration Unfunded BHICC Interior Modernization Projects, $61 New T91 Cruise Gangway Available for Potentially Unfunded: Other Projects, $27.8 Potential New T91 Berths 6 and 8 Revenue Projects*, FT Docks 3,4,5 Upgrade $139.5 SaBM Docks D&E Replacement P66 Shore Power $261 Million Total *Financial returns dependent on strategy and are not expected to have a material impact on funding capacity in the next 10 years. Note: Assumes current revenue and levy projections **Smaller projects not listed 14 2019 to 2023 Capital: Scoring Criteria $15M Century Agenda $87.2M $44.6M $17.9M Potential Revenue $9.9M Renewal $24.5M & Replace $21.9M 15
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