Aviation Operating Budget Presentation
Aviation Division 2021 Preliminary Budget Commission Presentation October 13, 2020 Outline for Presentation Strategic priorities Operating budget summary Expense changes and budget requests CARES Act grant use plan PFC use plan Revenues and NOI: aeronautical and non- aeronautical Financial Forecast Appendix with budget details and reports 2 2021 Aviation Division Budget Timeline 2021 Business CommissionBudget Budget BriefingOperating and First Reading &First Reading & 2nd Read2nd Read ing &ing & Plan G uidance DevelopmentBudget Capital Budget Public HearingPublic Hearing Final Pass Final Pass age ofage of an d CIP BriefingRetreats for 2021 Budgetfor 2019 Budget 2019 Bu 2021 Bu dgetdget Devel opment Briefings (July 29 & (Sept 22 & (July 10) (Oct 9) (Mid-November) (Late Nove mber) (J une) Aug 6) Oct 13) (Nov 10) (Nov 1 7) 3 Strategy To Budget Process Century Agenda g Vision/Goals in 5- 10 Years n SWOT gic Plan Gap Strate Objectives & KPIs 3 5 Years n 2021 Business Plan tatio n e 2021 Budget Annual m le p 2021 Performance Plans Im 4 Century Agenda Drives Division Plans and Budgets CENTURY AGENDA OBJECTIVES Position the Puget Sound Region as a Premier International Logistics Hub Advance this Region as a Leading Tourism Destination and Business Gateway Responsibly Invest in the Economic Growth of the Region and all its Communities Be the Greenest and Most Energy Efficient Port in North America Become a Model for Equity, Diversity and Inclusion Be a Highly Effective Public Agency AV Priorities and Alignment with Century Agenda CA Goal/Objectives AV Priority/Initiatives Objective/KPI Goal 2: Advance this Region as a Leading Customer Experience Tourism Destination and Business Gateway Fly Healthy@SEA Objective 3: Continuously improve Leverage SEA brand Attain Skytrax 4 star rank by 2025 operational efficiency and customer Accessibility experience at SEA Goal 2: Advance this Region as a Leading Capital Delivery Tourism Destination and Business Gateway Complete and open IAF Thirty (30) year-round international Objective 4: Strengthen the Lounge expansion and upgrades services of over 2,000 miles by 2025 competitiveness of SEA in the regional and C-1 Building global marketplace SSAT Renovation Goal 2: Advance this Region as a Leading Capital Delivery Tourism Destination and Business Gateway Complete and open NSAT Phase 2 Objective 5: Meet the region's air Complete relocation of Checkpoint 1 Achieve level of service Optimal at peak for transportation needs by delivering vital Expand/reconfigure Checkpoint 3 FIS, Gates, Checkpoints and Restrooms by facilities and infrastructure in a sustainable Renovate Zone 6&7 of Ticketing and 2025 and cost-effective manner Checkpoint 5 Complete Restroom Renovations 6 SEA Strategic Priorities: Vision/Goals AV Priorities Vision/Long-term Goals 1. Health and Safety Annually reduce major ground incidents by 5% 100% of employees go home safely, achieve 95% safety evaluation score annually 2. Security Zero discrepancies on TSA audit Zero breaches, zero discovery of prohibited items in sterile area, zero incidents of intentional harm 3. Employees 75% of Aviation employees measure high engagement scores 4. Community All Part 150 commitments met, additional noise reduction measures explored and implemented 5. Innovation Lean and process improvements are ingrained in Port's culture 6. Social Responsibility Sustainable share of Port economic opportunities going to disadvantaged businesses 7. Customer Skytrax 5-Star ranking; Top 10 ASQ U.S. mega-hub airports (25 in pool) Experience 45 minutes from clocktower through security checkpoint Reduce international to domestic minimum connect times to 75 minutes 30 year-round int'l services over 2,000 miles by 2025 8. Environment & Achieve Port goals for green house gas emissions for 2030 and 2050 Sustainability Sustainable Aviation Fuel 10% of jet fuel used at SEA by 2028 9. Financial Port can operate, maintain and upgrade facilities to accommodate regional demand while Sustainability maintaining competitive CPE, manageable debt levels, and adequate debt service coverage 10. Asset Management Provide facilities to meet demand for passenger and cargo service Capital Development Achieve critical asset uptime of 99% & Delivery Provide optimum level of service (at peak times) 7 2020 SWOT: Industry/Business Context OPPORTUNITIES THREATS Pandemic impact on demand for travel Regional economy -historically resilient, timing and extent of recovery uncertain may bounce back sooner? Airlines in financial trouble focus on cost Construction costs and delivery may be cutting, reduced airport costs, retired more competitive, less constrained by aircraft reduce supply airport congestion, opportunity to catch up Technology video conferencing and Technology:touchless, video-conferencing, teleworking could reduce demand for air teleworking, innovation travel Federal support for airports Opposition to airport expansion Construction costs uncertain due to Covid- 19 restrictions Non-aero business model paradigm shift 8 2020 SWOT: Sea-Tac Airport STRENGTHS WEAKNESSES Finances have deteriorated lower debt Two hub airlines:Alaska and Delta service coverage, lower cash balance, lower New facilities will open, adding capacity: capital capacity IAF and NSAT Current facilities not designed for Port of Seattle staff, ability to adapt and passenger/traffic levels; physical distancing; innovate aging infrastructure SEA brand, FlyHealthy@SEA strategy, tenant Construction impacts customer service engagement Port processes:design review process, Support creation/maintenance of jobs hiring, commission review & approval Staffing constraints, retirements, challenges filling key positions Organizational focus to support declining businesses 9 Passenger Recovery Forecast Annual Change Vs. 2019 2020 -61.0% -61.0% 2021 79.5% -30.0% 2022 25.7% -12.0% 2023 9.1% -4.0% 2024 4.2% 0.0% 2025 2.5% 2.5% International passenger recovery expected to lag domestic in 2021 10 SEA Responding to Unique Challenges in 2021 Challenges: Response: 30% reduction in passengers vs. 2019 Long-term view on capital program: Path of recovery uncertain keep CIP going, be ready for rebound Non-aero Revenues down $80 million Fund strategically critical initiatives vs. 2019 Reduce operating expenses by: Opening IAF and NSAT adding costs Freezing 102 open positions Covid-19 and FlyHealthy@SEA No pay increases for non-represented staff Payroll vacancy factor of 1.5% Airlines pressing for reduced rates Cut non-essential travel and training while costs are increasing and activity Maintain programs/services/initiatives at is down reduced levels Capital investment needs growing Save portion of CARES act grant for 2021 to bolster debt service coverage, reduce airline costs 11 2021 Budget Priorities Wildly Important Goals Customer Experience: Achieve four goals of FlyHealthy@SEA: Maintain a healthy, safe airport environment Restore confidence in air travel Renew enthusiasm for travel Return passenger volumes and economic vitality Employees: Maintain score of 70% or higher on surveys for employee engagement and morale Financial: Achieve debt service coverage > 1.25x Community: Continue South King County Fund, accelerate noise program New Facilities: Successfully open and operate International Arrivals Facility and North Satellite, Phase 2 12 Highlights of Proposed Budget Additions Amount Opening of IAF and NSAT Phase 2 Description ($000) drive new costs New facilities (IAF, NSAT Ph 2) 5,247 Many continuing initiatives are SAMP Environmental Review 900 Utility Master Plan 1,200 re-approved annually to manage Planning 1,600 scope and cost Asset Management 500 Pest Management & Wildlife 787 Virtual queuing included in Consolidated Support Services 3,468 FlyHealth@SEA FlyHeathy@SEA 880 Renewable Natural Gas 979 Unfrozen FTEs most planned New FTEs (unfreezing 18 and 2 new) 1,179 hiring in second half of year Other 1,994 Total 18,734 13 Frozen FTEs Key to Budget Savings FTEs 120 Vacant FTEs when 2021 Budget Adjusted approved FTEs start of Budget 1,245.3 process began: 102 vacant FTEs will remain Frozen FTEs at start of Budget -120.3 frozen and unfunded in 2021 Budget FTES to add back in 2021 18.0 18 positions from the vacant list were identified to "unfreeze" for New FTE requests 2.0 hiring in 2021 Only 2 new FTEs for key functions: Total FTEs in 2021 Budget 1,145.0 Art program coordinator Biometric Analyst Net reduction 8.2% 14 Budget Summary Inc/(Dec) from 2020 2019 2020 2020 2020 2021 Budget Summary Approved Budget ($ in 000's) Approved Revised Proposed Actual Budget Budget Forecast Budget $ Change % Change Operating Revenue Aeronautical Revenues 357,598 401,342 401,342 296,566 389,342 -12,000 -3.0% Non-Aeronautical Revenues 269,037 283,167 135,074 116,394 191,637 -91,530 -32.3% Total Operating Revenues 626,636 684,510 536,416 412,960 580,980 -103,530 -15.1% Total Operating Expenses 355,245 377,306 348,826 342,508 338,475 -38,831 -10.3% Net Operating Income 271,390 307,203 187,589 70,452 242,504 -64,699 -21.1% CPE 12.86 13.92 13.92 27.43 19.73 5.81 0.42 Non-Aero NOI ($ in 000s) 143,028 150,531 17,315 4,741 85,601 -64,931 -43.1% Enplaned passengers (in 000s) 25,874 26,667 26,667 10,172 18,216 -8,451 -31.7% Capital Expenditures 573,598 513,131 489,182 535,937 464,234 -48,897 -9.5% 15 Aviation Operating Budget Changes Note: Aviation division costs only this chart does not include direct charges or allocations from other divisions. 16 Summary of Budget Requests 2021 Budget Requests (in $000's) # of Non- Budget Request Category FTEs Baseline Total Requests Recurring Health and Safety 8 1.0 273 215 488 Security 3 0.0 152 8 159 Employee Engagement 0 0.0 - - - Community 4 2.0 176 43 219 Innovations and Efficiencies 2 1.0 152 - 152 Social Responsibility 1 0.0 - 55 55 Customer Experience 16 7.0 4,328 560 4,888 Environment and Sustainability 4 0.0 979 945 1,924 Financial Sustainability 6 2.0 249 450 699 Asset Management, Capital Development and Delivery 32 7.0 6,468 3,682 10,150 2021 Budget Requests - Total Proposed 76 20.0 $ 12,777 $ 5,957 $ 18,734 2021 Budget Requests - Initial Requested 121 38.65 $ 18,156 $ 12,612 $ 30,768 17 Restored FTEs and New FTE Requests AV Priority Purpose/Outcome FTEs Health and Safety 1 Airfield Operations Specialist 1.0 1 Noise Program Manager Community 2.0 1 Art Program Coordinator (new) Innovations and Efficiencies 1 Biometric Analyst (new) 1.0 5.5 Bus drivers (Rental Car & Employee Parking) Customer Experience 7.0 1.5 Public parking cashiers 1 Sr. Manager, Airport Dining & Retail Financial Sustainability 2.0 1 Sr Manager, Aviation Properties 1 Director of AV Facilities and Capital Programs 3 Engineering positions in the Facilities & Maintenance depts Asset Management, Capital 1 Fire Protection Engineer 7.0 Development and Delivery 1 Baggage Systems Specialist 1 Laborer Parking/Fueler/Cleaner Total 20.0 18 Total Airport Expense Summary Inc/(Dec) from 2020 2019 2020 2020 2020 2021 Total Airport Expense Summary Approved Budget ($ in 000's) Approved Revised Proposed Actual Budget Budget Forecast Budget $ Change % Change Operating Expenses Payroll 144,051 160,340 156,826 157,377 153,324 -7,016 -4.4% Outside Services 68,162 79,889 70,401 70,640 63,638 -16,252 -20.3% Utilities 18,180 21,180 20,642 15,787 20,244 -936 -4.4% Other Expenses 14,721 5,224 -1,682 581 1,498 Total Airport Direct Charges 245,114 266,634 246,187 244,384 238,704 -27,930 -10.5% Environmental Remediation Liability 15,900 2,648 878 -1,967 2,001 -647 -24.4% Capital to Expense 2,089 0 0 32 0 0 Total Exceptions 17,989 2,648 878 -1,935 2,001 -647 -24.4% Total Airport Expenses 263,104 269,282 247,065 242,449 240,705 -28,577 -10.6% Corporate 65,729 77,460 71,646 69,601 69,726 -7,734 -10.0% Police 22,290 26,233 26,122 26,122 23,946 -2,287 -8.7% Maritime/Economic Development/Other 4,123 4,332 3,994 4,335 4,098 -234 -5.4% Total Charges from Other Divisions 92,141 108,025 101,761 100,058 97,771 -10,254 -9.5% 0 Total Operating Expenses 355,245 377,306 348,826 342,508 338,475 -38,831 -10.3% 19 CARES Act Grant and PFCs Key to Achieving Financial Targets and Managing Customer Rates Airport Financial Priorities Strategy Maintain debt service coverage > 1.25x Use CARES to boost debt service coverage Increase cash balance target: for 2020 and 2021 12 months O&M for 2021 Target CARES to airline and non-airline 18 months O&M by 2025 cost centers for O&M and debt service to Reduce 2020 year-end airline deficit (for mitigate rate impacts year-end true-up) Includes RCF debt service Mitigate airline rate increases in 2021 Use income to build cash balance Mitigate amount of needed Rental Car Use PFCs to pay debt service to maximize Customer Facility Charge increase current airline rate benefit Use PFCs by cost center to manage airline rates 20 CARES Act Grant Use Plan Impacts Aero Revenues in $000s 2020 Budget 2020 Fcst 2021 Bud Debt service coverage Aero revenues 401,340 296,566 389,342 > 1.25x assures no Aero debt service coverage - - - Non aero revenues 283,167 116,684 191,637 coverage surcharge Total operating revenues 684,507 413,250 580,979 CARES Act grant: Operating expense 377,306 342,508 338,475 Net operating income 307,201 70,742 242,504 $153.9M in 2020 CARES grant O&M 53,000 3,500 $33.2M in 2021 CARES grant Debt Service - 105,901 29,732 Net operating income after CARES 307,201 229,643 275,736 Cash balance ~ 11 months O&M, can Key Measures Debt service coverage 1.80 1.36 1.35 supplement with Cash (ADF) Balance ($000) 314,000 280,000 321,303 Airline surplus/(deficit) ($000) - (5,384) N/A commercial paper CPE $ 13.23 $ 26.21 $ 19.69 21 CARES Act Grant By Cost Center 60,000 50,000 $ in 000's Total Airfield 71,500 40,000 Terminal 36,803 FIS 27,830 30,000 Non-Airline 56,000 Total 192,133 20,000 10,000 Non-aero use includes $15 million for RCF - debt service to boost Airfield Terminal FIS Non-Airline Customer Facility 2020 2021 Charge fund 22 PFC Use Plan: Background and Strategy Commission motion in May of 2015: Established funding plan for International Arrivals Facility Goal of preserving "level playing field" across airline rates Maintain competitive FIS rate (international arrivals fee) vs. peer airports Maintain competitive Landing fee and CPE 2019 Study of peer airport FIS rates LAX at top with $11 - $12 2020 and 2021: Airline rate "triage" given passenger decline Peer airport comparisons not meaningful and/or not available Proposed plan recognizes activity-based rates (rather than square-foot based rates) are most stressed and need most mitigation Plan for 2023 and beyond will strive to manage rate increases in balanced manner 23 PFC Alternative Use Plans Balanced Rate Growth Scenario 1 (FIS, AF, TERM) Scenario 2 (AF, TERM,FIS) Scenario 3 (TERM, AF,FIS) In $000's 2020 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 Available PFC $ 51,273 $ 73,061 $ 92,019 $ 101,234 $ 73,061 $ 92,019 $ 101,234 $ 73,061 $ 92,019 $ 101,234 $ 73,061 $ 92,019 $ 101,234 Use of PFCs: PFC back bond - 3rd Runway 8,018 18,766 18,770 10,792 18,766 18,770 10,792 18,766 18,770 10,792 18,766 18,770 10,792 In-line Baggage 5,000 5,000 5,000 5,000 Revenue Bond PFC DS Offset (3RW) 26,412 19,875 18,898 10,655 15,777 20,924 17,177 26,296 20,924 17,177 25,058 20,924 17,177 PFC DS Offset (Terminal) - - 9,315 28,931 - 221 15,405 21,192 32,918 35,399 22,429 32,918 35,399 PFC DS Offset (IAF) 11,845 27,674 36,201 37,093 31,709 43,585 43,589 - 10,888 23,594 - 10,888 23,594 Total Debt Service Offset 38,257 47,549 64,414 76,679 47,486 64,730 76,171 47,487 64,730 76,171 47,487 64,730 76,171 PFC Ending Balance $ 4,999 $ 6,746 $ 8,835 $ 8,764 $ 6,809 $ 8,519 $ 9,271 $ 6,808 $ 8,519 $ 9,271 $ 6,808 $ 8,519 $ 9,271 How best to use PFCs to manage rates consistent with 2015 Commission motion? Scenario 1 reflects what is currently in the 2021 preliminary budget Prioritize FIS Balanced Rate Growth plan is the proposed plan: Higher FIS fee, but lower Landing fee for 2021 and 2022 Aim for balanced rate growth for 2023 and beyond Consistent with essence of 2015 Commission motion? Will seek airline input 24 PFC Proposed Use Plan Rates Impact Balanced Rate Growth Scenario 1 (FIS, AF, TERM) Scenario 2 (AF, TERM,FIS) Scenario 3 (TERM, AF,FIS) 2020 Rate Rate Category (budget) 2021 Rate 2022 Rate 2023 Rate 2021 Rate 2022 Rate 2023 Rate 2021 Rate 2022 Rate 2023 Rate 2021 Rate 2022 Rate 2023 Rate Landing Fee 4.08 4.88 4.39 4.60 5.06 4.33 4.39 $ 4.61 $ 4.33 $ 4.39 $ 4.67 $ 4.33 $ 4.39 Terminal Rental Rate 141.88 144.34 161.82 172.81 144.34 167.43 181.16 $ 130.43 $ 147.24 $ 168.81 $ 129.62 $ 147.24 $ 168.81 FIS Fee 8.69 19.00 21.13 22.12 15.34 17.14 18.64 $ 44.08 $ 34.81 $ 29.36 $ 44.08 $ 34.81 $ 29.36 Landing Fee 20% -10% 5% 24% -14% 1% 13% -6% 1% 14% -7% 1% Terminal Rental Rate 2% 12% 7% 2% 16% 8% -8% 13% 15% -9% 14% 15% FIS Fee 119% 11% 5% 77% 12% 9% 407% -21% -16% 407% -21% -16% DS coverage 1.35 1.40 1.45 1.35 1.40 1.44 1.38 1.43 1.45 1.38 1.43 1.45 CPE 19.70 19.21 19.21 19.68 19.68 19.12 19.99 19.44 19.31 20.00 19.44 19.31 ADF/Cash Ending Balance 321,303 396,882 498,218 321,303 394,782 492,958 325,866 406,975 509,981 353,689 435,285 538,787 Balanced Rate Growth performs "Triage" 2021-2022 until activity normalizes 2021: FIS Fee Target is $19 in order to keep the landing fee below $5 2022: Landing Fee adjusted down to partially offset 20% prior year growth 2023+: Comparable annual rate changes among cost centers Scenarios 1-3: Disparity among annual rate changes Debt structure or future debt creates volatility in future years 25 Non-Aero Revenue By Business Unit Total Non-Aero Revenues Non-Aero Revenues per Enplanement 300,000,000 4.00 3.50 250,000,000 3.00 200,000,000 Revenue 2.50 150,000,000 2.00 100,000,000 1.50 1.00 50,000,000 Revenue Per Enplanement 0.50 - - 2019 2020 2020 2021 2019 2020 2020 2021 Actual A. Budget Forecast P. Budget Actual A. Budget Forecast P. Budget Public Parking Rental Cars Ground Transportation Public Parking Rental Cars Ground Transportation Airport Dining & Retail Commercial Properties Other Non-Aero Airport Dining & Retail Commercial Properties Other Non-Aero Non-Aero Revenue overview: Non-Aero revenue based on concession fees or transaction volume (Parking, Rental Car, GT, ADR, Clubs & Lounges, In-flight Kitchens) are closely aligned with the change in passenger volume Commercial Properties and other Non-Aero line of business with revenue from space rent for real estate leases were relatively unaffected by the COVID-19 decline in enplanements 26 Non-Aero NOI 2019 2020 2020 2020 2021 Inc/(Dec) from 2020 Non-Aeronautical NOI Approved Budget ($ in 000's) Approved Revised Proposed Actual Budget Budget Forecast Budget $ Change % Change Non-Aeronautical Revenues Public Parking 82,125 89,485 40,813 33,598 59,597 -29,888 -33.4% Rental Cars 52,567 51,149 19,209 15,363 28,947 -22,203 -43.4% Ground Transportation 20,765 22,299 11,092 7,701 13,628 -8,671 -38.9% Airport Dining & Retail 61,615 66,145 27,753 25,545 45,951 -20,193 -30.5% Other 51,966 54,089 36,207 34,187 43,514 -10,575 -19.6% Total Non-Aeronautical Revenues 269,037 283,167 135,074 116,394 191,637 -91,530 -32.3% Total Non-Aeronautical Expenses 118,286 128,508 113,631 111,653 106,037 -22,471 -17.5% Non-Aeronautical NOI 150,752 154,660 21,443 4,741 85,601 -69,059 -44.7% Less: CFC Surplus 0 0 0 0 0 0 Adjusted Non-Aeronautical NOI 150,752 154,660 21,443 4,741 85,601 -69,059 -44.7% Debt Service -49,299 -50,064 -50,064 -28,998 -53,025 -2,961 5.9% Net Cash Flow 101,453 104,596 -28,621 -24,257 32,576 -72,020 -68.9% 27 Aeronautical Cost Drivers Impact on Aero Impact on Aero Revenues Revenues 2020 2020 2021 Budget Change Budget vs Forecast $ in 000's Budget Forecast Budget $ % $ % O&M (1) 242,981 223,820 225,094 (17,887) -7.4% 1,273 0.6% CARES Grant O&M - (33,000) (3,500) (3,500) 29,500 -89.4% Net O&M 242,981 190,820 221,594 (21,387) -8.8% 30,773 16.1% Debt Service Gross 174,455 169,107 193,302 18,847 10.8% 24,195 14.3% Debt Service PFC Offset (62,998) (38,363) (47,216) 15,783 -25.1% (8,852) 23.1% CARES Grant Debt Service - (69,157) (24,732) (24,732) 44,426 -64.2% Net Debt Service 111,457 61,586 121,355 9,898 8.9% 59,769 97.0% Amortization 32,326 32,493 32,681 355 1.1% 188 0.6% Space Vacancy (490) (1,099) (1,141) (651) 133.0% (42) 3.8% TSA Operating Grant and Other (1,028) (3,728) (758) 270 -26.3% 2,970 -79.7% Rate Base Revenues 385,246 280,072 373,730 (11,515) -3.0% 93,658 33.4% Commercial area 16,097 16,493 15,612 (485) -3.0% (881) -5.3% Total Aero Revenues 401,343 296,566 389,342 (12,000) -3.0% 92,777 31.3% (1) O&M, Debt Service Gross, and Amortization do not include commercial area costs or the international incentive expenses O&M increased costs offset by reductions based on activity and focus on mission critical items. Capital costs driven by debt service on new facilities. Aero Portion of CARES Grant current usage for 10/13/20 Commission Presentation is $102K in 2020 and $28K in 2021 within DS and O&M 28 Aeronautical NOI Inc/(Dec) from 2020 Approved 2019 2020 2020 2020 2021 Aeronautical NOI Budget ($ in 000's) Approved Revised Proposed Actual Budget Budget Forecast Budget $ Change % Change Rate Base Revenues Airfield Movement Area 123,436 132,128 132,128 76,857 122,884 -9,245 -7.0% Airfield Apron Area 22,016 22,011 22,011 14,430 20,775 -1,237 -5.6% Terminal Rents 205,283 212,943 212,943 184,334 212,861 -82 0.0% Federal Inspection Services (FIS) 12,321 18,162 18,162 4,452 17,211 -951 -5.2% Total Rate Base Revenues 363,057 385,245 385,245 280,072 373,730 -11,515 -3.0% Airfield Commercial Area 11,687 16,097 16,097 16,493 15,612 -485 -3.0% Subtotal before Revenue Sharing 374,744 401,342 401,342 296,566 389,342 -12,000 -3.0% Revenue Sharing -17,146 0 0 0 0 0 Total Aeronautical Revenues 357,598 401,342 401,342 296,566 389,342 -12,000 -3.0% Total Aeronautical Expenses 236,959 248,799 235,196 230,854 232,439 -16,360 -6.6% Aeronautical NOI 120,639 152,544 166,147 65,711 156,904 4,360 2.9% Debt Service -110,945 -121,410 -121,410 -65,444 -130,749 -9,339 7.7% Net Cash Flow 9,694 31,134 44,737 267 26,155 -4,979 -16.0% 29 2021 Budget Open Issues The following items are not yet reflected in the 2021 Budget: SAMS (Surface Area Management System) new airfield software licensing costs ~$1.1M Existing software licensing contracts transferred from ICT budget, but not yet added to Aviation division ~$520K Pending contract negotiations with Smarte Carte for new luggage carts and cart service in IAF ~ $670K 30 2020 Operating Budget Risks Recovery path; impact on non-aero revenues; uncertainty Managing recovery: Physical distancing and limited space pre-security Health screening? New requirements, new costs? Achieving labor savings No contingency in budget 31 Financial Forecast 2020 - 2025 In $000's Forecast Budget Forecast Forecast Forecast Forecast Forecast assumes: 2020 2021 2022 2023 2024 2025 Airline Revenue $ 296,566 $ 389,342 $ 469,671 $ 517,527 $ 564,576 $ 597,673 Recovery to 2019 Non-Airline Revenue 116,394 191,637 241,627 264,112 276,874 288,017 Total Revenue $ 412,960 $ 580,980 $ 711,298 $ 781,639 $ 841,450 $ 885,689 passenger levels in Operating Expense 342,508 338,475 377,552 394,886 406,733 418,935 2024 Net Operating Income $ 70,452 $ 242,504 $ 333,746 $ 386,752 $ 434,717 $ 466,754 CARES grant Non-Op Revenue 53,000 3,500 - - - - Maintaining adequate Net Non-Operating Income/Expense 4,741 2,543 7,032 9,167 10,654 10,909 debt service coverage CFC Excess* - - (3,909) (7,041) (6,682) (5,755) Available for Debt Service $ 128,193 $ 248,548 $ 336,869 $ 388,878 $ 438,690 $ 471,908 Plan to increase Gross Debt Service (net of cap i) $ 252,602 $ 279,880 $ 321,647 $ 374,145 $ 429,480 $ 471,459 targeted cash balance CFC Offset (13,928) (19,153) (24,411) (24,659) (26,905) (29,152) from 10 to 18 months PFC Offset (38,363) (47,216) (64,414) (76,564) (81,437) (97,887) CARES grant debt service offset (105,901) (29,732) - - - - of O&M by 2025. Will Net Debt Service $ 94,409 $ 183,779 $ 232,822 $ 272,921 $ 321,138 $ 344,420 adjust cash funded Net Cash Flow $ 33,784 $ 64,768 $ 104,046 $ 115,957 $ 117,551 $ 127,489 capital budget and/or Key Measures (not in $000's) issue commercial Debt Service Coverage 1.36 1.35 1.45 1.42 1.37 1.37 paper to achieve Passenger Airline CPE $ 27.43 $ 19.69 $ 19.22 $ 19.56 $ 20.49 $ 21.18 Debt per Enplaned Passenger $ 336 $ 198 $ 180 $ 184 $ 201 $ 211 target. Cash Balance - Months of O&M 9 12 14 16 18 18 * CFC collection in excess of CFC debt service/O&M is restricted and cannot be used for other revenue bond debt service 32 Budget Summary Conservative operating budget Preserve jobs Fund strategic priorities Plan to review and adjust budget (up or down) quarterly based on recovery Continue to invest in airport capital improvements, support the economic recovery Plan for bond issue in 2021 to fund capital program, achieve refunding savings 33 APPENDIX AVIATION DIVISION 34 Aviation Appendix Contents Operating Budget Explanation of Baseline Budget Changes ERL summary 2021 Budget Request detail listing FTE summary of key changes Operating Expense summary Non-aeronautical revenue budgets by business unit Capital Budget 35 BUDGET MANAGEMENT: BASELINE BUDGET CHANGES 36 SUMMARY OF 2021 BUDGET CHANGES Removed 2020 non-recurring expense (23,335) Baseline transferred to Central Svcs (511) 2021 Reductions/Savings in baseline budget (35,664) 2021 Increases in Charges to Capital 4,728 2021 Increases to baseline budget 8,100 Exceptions: Change in Regulated Materials (647) Budget Reduction before new Budget Requests (47,327) Proposed 2021 additions (baseline) 12,777 Proposed 2021 additions (non-recurring) 5,957 Subtotal - new Budget Requests 18,734 Incremental Budget Change - Total O&M (28,593) 37 Change in Charges to Capital 2021 Charges to Capital Increase from 2020 Approved Budget: $000's Higher estimated Charges to Capital AVPMG increased Charges to Capital 3,545 CSS increased Charges to Capital 805 AVM increased Charges to Capital 332 All other Aviation increases in Charges to Capital 46 Total Increase in Charges to Capital 4,728 38 Cost Reductions 2021 Baseline Cost Reductions/Savings: $000's Payroll Savings (before new FTE requests) Vacant positions (102.3) frozen & unfunded in 2021 Budget 10,336 Vacant positions (18) unfunded prior to Budget Request to "unfreeze" 2,289 Reduction in overtime assumption for 2021 1,163 All other payroll savings 174 Total Payroll Decreases 13,962 Non-Payroll Savings (zero based budgeting) Reduction in AVPMG recurring outside services costs 5,224 AV Maintenance non-payroll cost reductions 2,770 VIP Hospitality/FSS service contract removed (new budget request) 2,670 Reduction in Clubs & Lounges operating expenses due to lower activity 2,002 Reduction in utility expense (before RNG Budget Request) 1,909 Reduction in Travel & Other Employee expenses 1,816 Reduction in Furniture & Equip Acquisition expense 756 Reduction in Credit Card Fees related to lower revenue 731 AV Environmental non-payroll cost reductions 673 Reduction in Workers Compensation expense 314 Other non-payroll savings (zero based budgeting) 2,836 Total Non-Payroll Baseline Savings 21,702 Total 2021 Baseline Cost Reductions 35,664 39 Cost Increases 2021 Baseline Cost Increases compared to 2020 Approved Budget: $000's Payroll Increases (before new FTE requests) Payroll Vacancy (1.5% vacancy assumption in 2021 Budget after leaving 102 FTEs 2,100 vacant/unfunded vs. 3.0% vacancy assumption in 2020 Budget) Annualized new FTE's approved in the 2020 Budget 1,721 Pay increase from Represented labor contracts executed after 2020 Budget approved 1,293 Annualized new FTE's approved mid-year 2020 265 All other Grade/Equity Changes - Non-Represented 467 All other Grade/Equity Changes - Represented 202 All other payroll increase/adjustments 8 Total Baseline Payroll Increases 6,055 Non-Payroll Baseline Increases (before new Budget Requests) Janitorial contractual increase 1,545 Required IAF connectivity cost for U.S. Customs & Border Protection 309 All other non-payroll increase/adjustments 191 Total Baseline Non-Payroll Increases 2,045 Total 2020 Baseline Cost Increases 8,100 40 Environmental Remediation Liability Expense Budget Change 2021 Budget vs. ERL Expense 2018 2019 2020 2020 2020 2021 2021 B v 2020 A Bud 2020 Forecast Org Basis (in 000's) Actual Actual A. Budget R. Budget Forecast Budget $ % $ % North Satellite Asbestos 1,029 10,744 (15) - n/a 15 -100.0% Contaminated Soils 70 3,585 (1,364) - n/a 1,364 -100.0% NSAT - ERL Expense 1,099 14,329 - - (1,378) - - n/a 1,378 -100.0% South Satellite SSAT - Structural 517 0 - n/a - n/a SSAT - HVAC Infrastructure Upgrade 4,323 - n/a - n/a SSAT - ERL Expense 517 4,323 - - - - - n/a - n/a International Arrivals Facility Asbestos 1,337 (767) - n/a - n/a Contaminated Soils 2,465 (1,092) 264 265 230 (264) n/a (230) -100.0% IAF - ERL Expense 3,802 (1,860) 264 265 230 - (264) n/a (230) -100.0% Airport Employee Services Ctr 1,067 1,067 - n/a 1,067 n/a Terminal - window bomb blast glazing 500 - n/a - n/a Baggage Optimization Phase 2 316 316 n/a 316 n/a Phase 2 eGSE charging stations 477 300 502 25 5.2% 502 n/a Lora Lake (lake parcel) (120) (1,066) (1,893) - n/a 1,893 -100.0% All other RMM expense 434 174 840 313 1,074 116 (724) -86.2% (958) -89.2% Total ERL Expense 6,233 15,900 2,648 878 (1,967) 2,001 (647) -24.4% 3,968 -201.7% 41 BUDGET REQUESTS 42 Summary of Proposed Budget Additions Requests Approved Category Number Amount Expense Items Musts 20 4,749 Number 121 76 WIGs 32 10,549 Cost ($000) 30,768 18,734 PIGs 22 3,377 Other 2 59 FTEs Total 76 18,734 Unfreeze 36.4 18.0 New 2.0 2.0 Total 38.4 20.0 WIGs = Wildly important goals (top strategic priorities) PIGs = Pretty important goals (other strategic priorities) 43 New Requests vs. Restored/Continuation of work Budget Request Classification Budget Request Description FTE Baseline Non-Recurring Total Restore baseline Unfreeze vacant FTEs 18.0 1,048 1,048 Restore RNG baseline reduced in 2020 Revised Budget 659 659 All other restored baseline 603 603 Restore baseline Total 18.0 2,310 - 2,310 New baseline Airport Consolidated Contract Support Services 3,468 3,468 IAF - New Custodial Service 3,600 3,600 NSAT - New Custodial Service 750 750 NSAT Elevator/Escalator Preventive Maint Contract 596 596 Unified Pest Management Contract Support 627 627 Renewal Natural Gas - increase to baseline 320 320 Terminal Hand Sanitizer Refills 300 300 See Say Airport Security App 128 128 New FTEs 2.0 130 130 All other new baseline 549 549 New baseline Total 2.0 10,467 - 10,467 Non-recurring funding continuation On-Call Planning - defined expense project work 1,600 1,600 Utility Master Planning 1,200 1,200 SAMP near-term project environmental review 900 900 Asset Management Program Development 500 500 2021 New Air Service Incentive - specified routes 450 450 All other non-recurring funding continuation 675 675 Total Non-Recurring Funding Continuation 5,325 5,325 Total New Non-recurring Budget Requests 632 632 Total 2021 Budget Requests 20.0 12,777 5,957 18,734 44 Summary of Budget Requests 2021 Budget Requests # of Non- Budget Request Category FTEs Baseline Total Requests Recurring Health and Safety 8 1.0 272,557 215,000 487,557 Security 3 0.0 151,500 7,500 159,000 Employee Engagement 0 0.0 - - - Community 4 2.0 176,482 42,500 218,982 Innovations and Efficiencies 2 1.0 152,477 - 152,477 Social Responsibility 1 0.0 - 55,000 55,000 Customer Experience 16 7.0 4,327,975 559,540 4,887,515 Environment and Sustainability 4 0.0 978,842 945,000 1,923,842 Financial Sustainability 6 2.0 249,214 450,000 699,214 Asset Management, Capital Development and Delivery 32 7.0 6,468,092 3,682,325 10,150,417 2021 Budget Requests - Total Proposed 76 20.0 $ 12,777,139 $ 5,956,865 $ 18,734,004 2021 Budget Requests - Initial Requested 121 38.65 $ 18,155,604 $ 12,612,472 $ 30,768,076 45 Budget Requests: Health and Safety 2021 Budget Requests AV Priority Problem/Need/Opportunity Solution Non- FTEs Baseline Total Recurring Airfield Behavior Based Safety Training Program - Propulo - 151,120 - 151,120 Annual Membership Fee for Global Biorisk Advisory - 10,000 - 10,000 Council (GBAC) Accreditation Cargo Facilities Fire Code Consulting - - 35,000 35,000 Maintain and Improve Safety of Fire Department - Bunker Gear Replacement - - 80,000 80,000 Health and Airport Operations Area Safety Fire Department - Live Fire Training - 50,000 - 50,000 Hire Airfield Ops Specialist backfill 1.0 59,037 - 59,037 Fire Department - Live Fire Training - prop rental - 2,400 - 2,400 Reduce Wildlife Strikes New Consolidated Wildlife Management Contract - - 100,000 100,000 Health and Safety Total 1.0 $ 272,557 $ 215,000 $ 487,557 46 Budget Requests: Security 2021 Budget Requests AV Priority Problem/Need/Opportunity Solution Non- FTEs Baseline Total Recurring Regulatory "No Fly" monitoring contract - 24,000 - 24,000 Maintain and Enhance Overall Security SEA Safety Act Certification Application Maintenance - - 7,500 7,500 Security at the Airport See Say Airport Security App - 127,500 - 127,500 Security Total 0.0 $ 151,500 $ 7,500 $ 159,000 47 Budget Requests: Community 2021 Budget Requests AV Priority Problem/Need/Opportunity Solution Non- FTEs Baseline Total Recurring Ground Noise Study - - 37,500 37,500 Airport Noise Mitigation Hire a Noise Program Manager 1.0 121,982 - 121,982 Community Engage an Art Consultant - - 5,000 5,000 Maintain Airport Art Hire an Art Coordinator 1.0 54,500 - 54,500 Community Total 2.0 $ 176,482 $ 42,500 $ 218,982 48 Budget Requests: Innovations and Efficiencies 2021 Budget Requests AV Priority Problem/Need/Opportunity Solution Non- FTEs Baseline Total Recurring Biometric Air Exit Vendor Support - 76,725 - 76,725 Innovations Passenger Processing and Safety and Efficiencies Hire a Biometrics Analyst 1.0 75,752 - 75,752 Innovations and Efficiencies Total 1.0 $ 152,477 $ - $ 152,477 49 Budget Requests: Social Responsibility 2021 Budget Requests AV Priority Problem/Need/Opportunity Solution Non- FTEs Baseline Total Recurring Social Need to comply with FAA ACDBE Hire ADR consultant to assist with preparation of Triannual - - 55,000 55,000 Responsibility requirements report and review of joint venture agreements Social Responsibility Total 0.0 $ - $ 55,000 $ 55,000 50 Budget Requests: Customer Experience 2021 Budget Requests AV Priority Problem/Need/Opportunity Solution Non- FTEs Baseline Total Recurring Electronic Restroom Alert - - 15,840 15,840 Optiqo Quality Control Systems - - 23,700 23,700 FlyHealthy Terminal Hand Sanitizer Refills - 300,000 - 300,000 Touchless CUSS Kiosk Bag Tag Printing - 58,500 - 58,500 Customer Virtual Queuing - - 300,000 300,000 Experience BAGS INC - Rental Car Curbside Assistance - 180,000 - 180,000 Hire 3 bus drivers 3.0 112,700 - 112,700 Support Recovery of Operations Hire Bus Drivers - Employee Parking 2.5 99,239 - 99,239 Hire Cashiers (PSRR) - Public Parking 1.5 55,036 - 55,036 Continued on next slide 51 Budget Requests: Customer Experience, ctd. 2021 Budget Requests AV Priority Problem/Need/Opportunity Solution Non- FTEs Baseline Total Recurring ACCS - Airport Consolidated Contract Support Services - - 332,500 - 332,500 Ground Transportation Portion Consolidation of existing contracts ACCS - Airport Consolidated Contract Support Services - to gain flexibility with contract - 1,567,500 - 1,567,500 International Arrival Facility Portion employee staffing ACCS - Airport Consolidated Contract Support Services - Customer - 1,567,500 - 1,567,500 Terminal Portion Experience, ctd. Cruise season wheelchair assistance - 55,000 - 55,000 Processing Passengers Maul Foster & Alongi - Taxi Outreach - - 50,000 50,000 Quality Assurance : Confidential Customer Program - - 140,000 140,000 Strategic Customer Experience Improvements Skytrax 2021 Terminal Audit - - 30,000 30,000 Customer Experience Total 7.0 $ 4,327,975 $ 559,540 $ 4,887,515 52 Budget Requests: Environment & Sustainability 2021 Budget Requests AV Priority Problem/Need/Opportunity Solution Non- FTEs Baseline Total Recurring RNG for Boiler and CNG Operations - 659,167 - 659,167 Be the Greenest and Most Energy- Efficient Port in North America RNG for Boiler and CNG Operations - New Baseline - 319,675 - 319,675 Environment and Flight Corridor Safety Program Site Restoration - - 45,000 45,000 Sustainability Environmental Compliance Sustainable Airport Master Plan (SAMP) Near-Term - - 900,000 900,000 Projects (NTP) environmental review Environment and Sustainability Total 0.0 $ 978,842 $ 945,000 $ 1,923,842 53 Budget Requests: Financial Sustainability 2021 Budget Requests AV Priority Problem/Need/Opportunity Solution Non- FTEs Baseline Total Recurring New Air Service Incentive Program - Existing Eligible - - 250,000 250,000 Services (Cathay Pacific & Singapore) Air Service Development New Air Service Incentive Program - American Airlines - - 200,000 200,000 (London) Financial Hire a Senior Manager ADR 1.0 106,149 - 106,149 Sustainability Hire a Senior Manager Aviation Properties 1.0 53,065 - 53,065 Increase Non-Aeronautical Revenue Multi-prong SEA revenue advertising via Pre Booking - 60,000 - 60,000 System Advertising channels Parking advertising - 30,000 - 30,000 Financial Sustainability Total 2.0 $ 249,214 $ 450,000 $ 699,214 54 Budget Requests: Asset Management, Capital Development and Delivery 2021 Budget Requests AV Priority Problem/Need/Opportunity Solution Non- FTEs Baseline Total Recurring Cable Television System Asset Renewal and Critical Spares - - 24,825 24,825 Cargo Facilities Small Works Contracting - - 100,000 100,000 Civil System Support - 50,000 - 50,000 Controls service for new systems installed for Baggage - 20,000 - 20,000 Optimization Project Controls service for new systems installed for the - 38,000 - 38,000 Asset International Arrivals Facility Management, Meet the Maintenance Needs and Hire a Baggage Systems Specialist 1.0 69,498 - 69,498 Capital Standards of the Existing Facilities Hire a Fire Protection Engineer 1.0 23,204 - 23,204 Development Hire a Laborer Parking/Fueler Cleaner 1.0 51,362 - 51,362 and Delivery Hire a Operating Maint Engineer 1.0 39,088 - 39,088 Replace Vitra Glides on Holdroom Seats - - 24,500 24,500 Terminal Waste Receptacles for NSTAR - 118,000 - 118,000 Air Cargo Road Traffic Signal Annual Maintenance - 15,000 - 15,000 Hire AV F&I Prinicpal Engineer 1.0 47,810 - 47,810 Hire AV F&I Senior Engineer - Civil 1.0 86,025 - 86,025 Continued on next slide 55 Budget Requests: Asset Management, Capital Development and Delivery, ctd. 2021 Budget Requests AV Priority Problem/Need/Opportunity Solution Non- FTEs Baseline Total Recurring IAF Contractor Move & Relocate Furniture, etc. - - 20,000 20,000 IAF Custodial Service for 2021 - 3,600,000 - 3,600,000 NSAT Elevator Escalator Preventive Maint Contract - 596,000 - 596,000 Promo Hosting - IAF Grand Opening - - 50,000 50,000 Operate and Maintain New Facilities Asset Promo Hosting - NSAT Grand Opening - - 50,000 50,000 Management, VMS and Access Control for CBP - IAF - 25,048 - 25,048 Capital Zone 2 North Satellite Custodial Service for 2021 for Development - 750,000 - 750,000 NSTAR expansion and Delivery, Hire a director of Facilities and Capital Programs 1.0 124,057 - 124,057 ctd. On-Call Planning - - 1,400,000 1,400,000 Planning for Future Facilities Needs On-Call Planning - - 200,000 200,000 Transoft Increase - - 3,000 3,000 Utility Master Planning - - 1,200,000 1,200,000 Continued on next slide 56 Budget Requests: Asset Management, Capital Development and Delivery, ctd. 2021 Budget Requests AV Priority Problem/Need/Opportunity Solution Non- FTEs Baseline Total Recurring Implement Operational Readiness CITRI ORAT Software Renewal (Amortized) - 163,000 - 163,000 and Airport Transition (ORAT) IWS Lagoon Liner Condition Assessment and Repair Meet or Exceed Requirements for - - 50,000 50,000 Program Asset Stormwater Leaving Port-Owned or Management, Operated Facilities Light Rail Stormwater Vault Treatment Cleaning - 25,000 - 25,000 Capital Development and Delivery, Unified Pest Management Contract Support - 627,000 - 627,000 ctd. Pest Control and Waste Management Unified Pest Management Coordinator Consultant Funding - - 60,000 60,000 Q1/Q2 Strategic Asset Management Asset Management Program Development - - 500,000 500,000 Asset Management, Capital Development and Delivery Total 7.0 $ 6,468,092 $ 3,682,325 $ 10,150,417 57 FTE SUMMARY AND DETAILED REQUESTS 58 2021 FTE Reconciliation 2021 Proposed Budget FTEs FTEs % 2020 Approved Budget Aviation division FTEs 1,207.28 Central Services FTE's transferred to Aviation division (Aviation COE positions) 43.25 2020 Approved Budget in AV presentation 1,250.53 2020 Changes in FTEs during the year 2020 mid-year FTE additions - AV division 2.00 Intern FTEs transferred to HR/Central Services (7.25) 2020 Mid-year Changes in FTEs (5.25) 2020 Adjusted Aviation FTEs prior to 2021 Budget process 1,245.28 Vacant FTEs frozen in 2020 & unfunded in 2021 Budget (120.30) -9.7% FTEs in 2021 Baseline Budget BEFORE Budget Requests 1,124.98 Proposed Additional FTEs in 2021 Budget: Unfreeze existing vacant FTEs for hiring 18.00 1.4% New FTEs - strategic functions 2.00 0.2% Proposed Increase in 2021 Budget FTEs 20.00 1.6% FTEs in Proposed Aviation 2021 Budget 1,144.98 91.9% Net FTEs to remain frozen (unfunded) in 2021 Budget (102.30) -8.2% Note: percent changes compared to 2020 Adjusted Aviation FTEs prior to 2021 Budget process 59 New FTEs for 2021 Position List Sum of FTE 2021 BUDGET ASK DeptID Dept Name Job Title Total NEW FTE REQUEST 4100 Aviation Director's Office Art Coordinator 1.0 4120 Airport Innovation Biometrics Analyst 1.0 NEW FTE REQUEST Total 2.0 UNFREEZE FTE 3320 Airfield Operations Airfield Operations Specialist 1.0 3360 Noise Programs Noise Program Manager 1.0 3420 Public Parking Parking Services & Revenue Rep (Cashier) 1.5 3430 Rental Cars RCF Bus Driver Relief 2.5 RCF Bus Driver Part-time 0.5 3440 Employee Parking Employee Parking Bus Driver 2.5 3610 Aviation Properties Sr Mgr Aviation Properties 1.0 3650 Airport Dining and Retail Sr Manager Airport Dining & Retail 1.0 4100 Aviation Director's Office Director AV Fac and Capital Prog 1.0 4400 Fire Department Fire Protection Engineer 1.0 4560 AV Facilities & Infrastructure AV F&I Prinicpal Engineer 1.0 AV F&I Senior Engineer 1.0 4593 Facility, Fleet, Sys & Grounds Laborer Parking/Fueler/Cleaner 1.0 4595 AV Mechanical Systems Baggage Systems Specialist 1.0 Mechanical Maint Engineer 1.0 UNFREEZE FTE Total 18.0 Grand Total 20.0 60 NON-AERONAUTICAL BUSINESS 61 Non-Aero Revenue Airport Dining & Retail - 75-80% of units closed in late March 2020 due to operating restrictions and dramatic decline in passengers. Units have gradually reopened as passenger volumes began to return in mid- 2020. 2021 Budget assumes continued ADR revenue growth consistent with the gradual return in passenger volumes. Parking - activity declined in 2020 consistent with the decline in passenger volume, partially mitigated by customer preference toward driving to and parking at the airport, rather than ride- share transportation options. Rental Car activity declined consistent with decline in passenger volume, partially mitigated by customer preference for private car rental rather than share-ride options. Ground Transportation GT trips impacted by both decline in passengers and customer preference away from share-ride transportation options. On-demand taxi operations experiencing significant operating loss. Commercial Properties In-flight Kitchen revenue impacted in proportion with decline in passengers. Other Non-Aero space rent not impacted by decline in passenger volume. Airport lounges both lounges closed during Q2 2020 due to COVID activity restrictions. One lounge re-opened in mid-2020. Second lounge expected to re-open in early 2021. Resumed operations include occupancy restrictions and stringent social distancing protocols which impacts revenue potential during recovery period. 62 Non-Aero NOI 2019 2020 2020 2020 2021 Inc/(Dec) from 2020 Non-Aeronautical NOI Approved Budget ($ in 000's) Approved Revised Proposed Actual Budget Budget Forecast Budget $ Change % Change Non-Aeronautical Revenues Public Parking 82,125 89,485 40,813 33,598 59,597 -29,888 -33.4% Rental Cars 52,567 51,149 19,209 15,363 28,947 -22,203 -43.4% Ground Transportation 20,765 22,299 11,092 7,701 13,628 -8,671 -38.9% Airport Dining & Retail 61,615 66,145 27,753 25,545 45,951 -20,193 -30.5% Other 51,966 54,089 36,207 34,187 43,514 -10,575 -19.6% Total Non-Aeronautical Revenues 269,037 283,167 135,074 116,394 191,637 -91,530 -32.3% Total Non-Aeronautical Expenses 118,286 128,508 113,631 111,653 106,037 -22,471 -17.5% Non-Aeronautical NOI 150,752 154,660 21,443 4,741 85,601 -69,059 -44.7% Less: CFC Surplus 0 0 0 0 0 0 Adjusted Non-Aeronautical NOI 150,752 154,660 21,443 4,741 85,601 -69,059 -44.7% Debt Service -49,299 -50,064 -50,064 -28,998 -53,025 -2,961 5.9% Net Cash Flow 101,453 104,596 -28,621 -24,257 32,576 -72,020 -68.9% 63 Public Parking Revenue following passengers Public Parking - Revenue Detail Fav (UnFav) Incr (Decr) 2019 2020 2020 2020 2021 B to FCST Variance Change from 2019 $ in 000's Actual A Budget R Budget Forecast Budget $ % $ % Parking Garage Revenue to Port General Parking/Terminal Direct 73,562 81,300 36,050 27,000 48,510 21,510 79.7% (25,052) -34.1% Prebooking 217 - 640 2,220 5,570 3,350 150.9% 5,353 2469.9% Revenue to Port - General Parking 73,779 81,300 36,690 29,220 54,080 24,860 85.1% (19,699) -26.7% Other Garage Revenue Premier Corporate Parking 1,415 1,360 820 410 850 440 107.3% (565) -39.9% Passport Parking Program 3,582 3,570 1,720 2,700 2,790 90 3.3% (792) -22.1% Revenue to Port - Parking Programs 4,997 4,930 2,540 3,110 3,640 530 17.0% (1,357) -27.2% Total Parking Garage Revenue 78,776 86,230 39,230 32,330 57,720 25,390 78.5% (21,056) -26.7% Other Parking Revenue Concession Rent - Doug Fox off-site parking 3,292 3,200 1,560 1,230 1,981 751 61.1% (1,311) -39.8% All Other Parking Revenue 56 55 23 18 18 - 0.0% (38) -68.1% Total Parking Revenue 82,125 89,485 40,813 33,578 59,719 26,141 77.9% (22,406) -27.3% Public Parking revenue recovery slightly better than enplanement gains Offsite parking recovery slightly slower, due to customer preference for self-parking at the airport, rather than shuttle bus transportation options. 64 Parking Revenue & O&D Enplanements as % of 2019 Actuals 120% Parking Overview: 104% 100% 100% Public Parking revenue 68%, O&D Enplanements recovery tracking closely 80% with change in passenger volumes 60% 50% Parking programs recovering more quickly than 40% enplanements 37% Doug Fox (offsite lot) recovering slightly slower 20% than enplanements, likely due to customer preference 0% for self-parking at the 2019 Actual 2020 A Budget 2020 R Budget 2020 Forecast 2021 Budget airport, rather than shuttle O&D Enplanements Parking Garage bus transportation options. Doug Fox off-site parking 65 Public Parking RPE strong on reduced O&D passengers Parking Revenue Metrics Fav / (UnFav) Incr / (Decr) 2019 2020 2020 2020 2021 B to FCST Variance Change from 2019 in 000's Actual A Budget R Budget Forecast Budget # % # % Total Enplanements 25,875 26,667 12,777 10,172 18,216 8,044 79.1% (7,659) -29.6% O&D % 70.2% 71.0% 71.0% 66.0% 68.0% 2.0% 3.0% -2.2% -3.1% O&D Enplanements 18,164 18,933 9,072 6,714 12,387 5,673 84.5% (5,777) -31.8% Revenue per O&D Enplanement Metrics Public Parking $ 4.06 $ 4.29 $ 4.04 $ 4.35 $ 4.37 $ 0.01 0.3% $ 0.30 7.5% Premier Corporate Parking $ 0.08 $ 0.07 $ 0.09 $ 0.06 $ 0.07 $ 0.01 12.4% $ (0.01) -11.9% Passport Parking Program $ 0.20 $ 0.19 $ 0.19 $ 0.40 $ 0.23 $ (0.18) -44.0% $ 0.03 14.2% Total Garage Revenue per O&D Enplanement $ 4.34 $ 4.55 $ 4.32 $ 4.82 $ 4.66 $ (0.16) -3.2% $ 0.32 7.4% Concession Rent - Doug Fox off-site parking $ 0.18 $ 0.17 $ 0.17 $ 0.18 $ 0.16 $ (0.02) -12.7% $ (0.02) -11.8% All Other Parking Revenue $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ (0.00) -45.8% $ (0.00) -53.2% Total Parking per O&D Enplanement $ 4.52 $ 4.73 $ 4.50 $ 5.00 $ 4.82 $ (0.18) -3.6% $ 0.30 6.6% O&D passenger percentage declined in 2020, reflects increase in connecting passengers from airline flight changes. Expected to rebalance in 2021/2022. Parking revenue per passenger higher from remaining passenger volume, reflects customer preference for self- parking. 66 Rental Car recovery slower than enplanements Rental Car - Revenue Detail Fav / (UnFav) Incr / (Decr) 2019 2020 2020 2020 2021 B vs FCST Variance Change from 2019 $ in 000's Actual A Budget R Budget Forecast Budget $ % $ % Total Enplanements 25,874 26,667 12,777 10,172 18,216 8,044 79.1% (7,658) -29.6% O&D % 71.1% 71.0% 71.0% 66.0% 68.0% 2.0% 3.0% -3.1% -4.4% O&D Enplanements 18,396 18,933 9,072 9,072 12,387 3,315 36.5% (6,010) -32.7% Gross Sales by Operators 328,156 335,405 153,455 115,000 205,160 90,160 78.4% (122,996) -37.5% Total Transactions 1,414 1,369 653 500 892 392 78.4% (522) -36.9% Average Ticket $232.06 $ 245.00 $ 235.00 $ 230.00 $ 230.00 $0.00 0.0% ($2.06) -0.9% Average Length of Stay 4.49 4.59 4.50 4.65 4.60 (0.05) -1.1% 0.11 2.3% Transactions/O&D Enplanements 7.69% 7.23% 7.20% 7.45% 7.20% -0.25% -3.4% -0.49% -6.3% CFC Revenue Summary Total Transaction Days 6,356 6,284 2,939 2,325 4,103 1,778 76.5% (2,253) -35.4% CFC Rate per Transaction Day $6.00 $6.00 $6.00 $6.00 $7.00 $1.00 16.7% $1.00 16.7% CFC Revenue Earned 38,137 37,700 17,630 13,950 28,721 14,771 105.9% (9,416) -24.7% Other CFC Collections (9) 0 - - - - N/A 9 -100.0% Total CFC Revenue 38,128 37,700 17,630 13,950 28,721 14,771 105.9% (9,407) -24.7% Debt Service Reserve Requirement (23,655) (23,914) (23,914) (24,153) (24,273) (120) 0.5% (618) 2.6% Reserve Fund Release (bond maturation) 1,300 - - - - - N/A (1,300) -100.0% Net Debt Service (22,355) (23,914) (23,914) (24,034) (24,153) (120) 0.5% (1,798) 8.0% Residual - CFC Operating Revenue 15,773 13,786 - - 4,568 4,568 N/A (11,205) -71.0% Rental Car - Revenue Summary Fav / (UnFav) Incr / (Decr) 2019 2020 2020 2020 2021 B vs FCST Variance Change from 2019 $ in 000's Actual A Budget R Budget Forecast Budget $ % $ % RCF Concession Revenue to Port 32,870 33,500 15,346 11,500 20,516 9,016 78.4% (12,354) -37.6% Residual - CFC Operating Revenue: 15,773 13,786 - - 4,568 4,568 N/A (11,205) -71.0% Land Rent/Space Rent/Other 3,924 3,863 3,863 3,863 3,914 51 1.3% (10) -0.2% Total Rental Cars Operating Revenue 52,567 51,149 19,209 15,363 28,998 13,635 88.8% (23,569) -44.8% 67 Rental Car Key Metrics as % compared to 2019 Actuals 120% 100% 100% 103% 100% 80% 67% 97% Total Transactions, 63% 60% 49% 46% 36% 40% 35% 20% 0% 2019 Actual 2020 A 2020 R 2020 2021 Budget 2019 Actual 2020 A 2020 R 2020 2021 Budget Budget Forecast Budget Budget Forecast Budget Total Transactions Average Ticket O&D Enplanements Concession Revenue Average Length of Stay Transactions/O&D Enplanements Rental Car concession fee revenue and transaction volume follows enplanement recovery pattern Some volatility in key metrics that impact Rental Car revenue, with overall revenue impact slightly slower than enplanements 68 CFC Fund Balance benefits from CARES grant Customer Facility Charge (CFC) 2019 2020 2020 2020 2021 Fav (UnFav) Incr (Decr) Cash Basis, Figures in 000's Actual A Budget R Budget Forecast Forecast B vs FCST Variance Change from 2019 O&D Percentage of Total Enplanements 71.1% 71.0% 71.0% 66.0% 68.0% 2.0% 3.0% -3.1% -4.4% O&D Enplanements 18,396 18,933 9,072 6,714 12,387 5,673 84.5% (6,010) -32.7% Transaction/O&D Enplanement 7.69% 7.23% 7.20% 7.45% 7.20% -0.3% -3.4% -0.5% -6.3% Total Transactions 1,414 1,369 653 500 892 392 78.4% (522) -36.9% Average Length of Stay 4.49 4.59 4.50 4.65 4.60 (0.05) -1.1% 0.11 2.3% Total Transaction Days 6,356 6,284 2,939 2,325 4,103 1,778 76.5% (2,253) -35.4% CFC Rate per Transaction Day 6.00 6.00 6.00 6.00 7.00 1.00 16.7% 1.00 16.7% CFC Beginning Fund Balance 16,951 21,729 23,605 23,605 10,358 (13,247) -56.1% (6,593) -38.9% Inflows of Funds CFC Collections & Other 39,067 37,700 17,634 13,950 28,721 14,771 105.9% (10,346) -26.5% Uses of Funds Current Year CFC-eligible Operating Costs 8,794 9,658 9,000 9,000 8,911 (89) -1.0% 117 1.3% Total Capital Expenditures 1,264 9,212 6,221 4,268 11,626 7,357 172.4% 10,361 819.4% Net Debt Service 22,355 23,914 23,914 23,928 24,153 225 0.9% 1,798 8.0% Total Uses 32,414 42,784 39,135 37,197 44,690 7,493 20.1% 12,276 37.9% New Commercial Paper Funding 1,000 CARES Act Grant Replenishment - - 10,000 10,000 5,000 Net Incremental change to CFC fund balance 6,654 (5,084) (11,501) (13,247) (10,969) Ending Fund Balance after CARES Act Grant 23,605 16,645 12,104 10,358 389 (9,969) -96.2% (23,216) -98.4% 69 GT revenue & trip recovery slower than enplanements Fav (UnFav) Incr (Decr) Ground Transportation - Revenue Detail 2019 2020 2020 2020 2021 B vs FCST Variance Change from 2019 $ in 000's Actual A Budget R Budget Forecast Budget $ % $ % Ground Transportation Revenues Transportation Network Companies 12,982 14,794 7,492 5,016 8,700 3,684 73.4% (4,282) -33.0% On Demand Taxis 3,578 3,321 1,504 1,057 1,851 794 75.2% (1,727) -48.3% On Demand Limos 837 837 411 289 - (289) -100.0% (837) -100.0% Belled In Taxis (Annual Permit) 27 24 12 12 19 7 60.0% (8) -30.1% Pre-Arranged Limos (Annual Permit) 611 581 278 110 516 406 370.3% (95) -15.5% Courtesy Cars (cost recovery) 2,019 1,984 951 871 2,160 1,289 147.9% 141 7.0% All other Operators (cost recovery) 418 466 250 138 188 50 36.5% (230) -55.0% Other Misc Revenues 293 294 194 224 194 (30) -13.4% (99) -33.8% Total GT Revenue 20,765 22,299 11,092 7,716 13,628 5,912 76.6% (7,137) -34.4% Trip Activity Fav / (UnFav) Incr / (Decr) 2019 2020 2020 2020 2021 B vs FCST Variance Change from 2019 in 000's Actual A Budget R Budget Forecast Budget # % # % Ground Transportation Trips Transportation Network Companies 2,172 1,929 864 845 1,450 605 71.6% (722) -33.2% On Demand Taxis 616 696 207 176 309 132 75.2% (307) -49.9% On Demand Limos 65 67 22 21 - (21) -100.0% (65) -100.0% Belled In Taxis (Annual Permit) 13 18 3 3 5 2 74.0% (8) -61.9% Pre-Arranged Limos (Annual Permit) 340 344 122 116 192 76 65.7% (148) -43.6% Courtesy Cars (cost recovery) 1,236 1,160 558 527 900 373 70.7% (336) -27.2% All other Operators (cost recovery) 74 57 22 15 27 12 78.5% (47) -63.7% Total GT Trip Activity 4,240 4,271 1,796 1,709 2,882 1,174 68.7% (1,358) -32.0% GT revenue reduction reflects compound impact: passenger decline and shift away from shared ride options 70 GT Trip Count Trend 2,500 2,000 GT Overview: Trips for all Ground Transportation operator types have declined due 1,500 to decline in passenger volume. Passenger preference appears to 1,000 be shifting away from shared ride alternatives, at least near term. Trip volume will be closely 500 monitored to determine if demand increases as passenger volume recovers. - 2019 Actual 2020 A Budget 2020 R Budget 2020 Forecast 2021 Budget TNC remains highest trip activity TNC On Demand Taxis Courtesy Cars All Other Operators within GT operator types. 71 GT Trips & O&D Enplanements as % of 2019 Actuals 120% 1 00% 103% 100% 80% Trip volumes for on- demand taxi and "all 60% 49% 36% O&D Enp lanements, 67% other" GT operator categories are 40% recovering slower 20% than the recovery in enplanements 0% 2019 Actual 2020 A Budget 2020 R Budget 2020 Forecast 2021 Budget TNC On Demand Taxis Courtesy Cars All Other Operators O&D Enplanements 72 On-Demand Taxi NOI Taxi trips and taxi revenue declined significantly while direct taxi expenses remained relatively fixed, resulting in net operating loss in 2020. Net Operating Loss for taxi operations expected to continue into 2021. 73 On-Demand Taxi NOI On-Demand Taxi On-Demand Taxi Overview: Revenue & Expense 2019 2020 2020 2020 2021 $ in 000's Actual A Budget R Budget Forecast Budget Taxi operations in GT experiencing Income net operating loss starting in 2020 as Revenue 3,578 3,321 1,504 1,057 1,851 Expense 3,214 3,685 3,531 3,120 3,529 revenue declines, most operating NOI 363 (364) (2,027) (2,063) (1,678) expenses are fixed Activity Total Enplanements 25,874 26,667 12,777 10,172 18,216 O&D % 71.1% 71.0% 71.0% 66.0% 68.0% Comparison 2021 Budget to 2019 Actuals O&D Enplanements 18,422 18,933 9,072 6,714 12,387 Revenue decreased 48% On-Demand Taxi Trips 616 696 207 176 309 Growth % & Metrics Operating Expenses increased 10% O&D Enplanement Growth % 3.9% 2.8% -50.8% -63.6% -32.8% Net loss of $1.7M anticipated in 2021 Trip Growth % -14.9% 13.0% -66.4% -71.4% -49.9% O&D Enplanement & Trips delta -18.8% 10.3% -15.7% -7.8% -17.1% Trips per O&D Enplanement 3.3% 3.7% 2.3% 2.6% 2.5% Primary contributing factors Expense Growth % N/A 14.7% 9.9% -2.9% 9.8% Expense Detail COVID related decline in passengers Landside Salary/Wage/Benefits 602 686 627 564 692 Customer preference shift away from Maintenance Wage/Benefits 106 48 48 37 47 Curbside Assistance 1,700 2,000 1,950 1,800 1,800 shared-ride transportation options, Other Direct O&M 160 102 102 102 151 especially taxis Subtotal Direct O&M 2,568 2,836 2,727 2,503 2,691 Divisional Allocations 395 351 321 221 307 Taxi curbside assistance contract is a fixed Corporate Allocations 148 295 280 193 248 monthly amount, not scaled to increase or Asset Ammortization 104 204 204 204 283 Total Expenses 3,214 3,685 3,531 3,120 3,529 decrease with passenger demand or taxi Taxi pilot program ends Oct 2021 and new proposals are under development. Budget assumes operations continues to YE. trip volume 74 Airport Dining & Retail Revenue 2021 Airport Dining & Retail (3650) 2019 2020 2020 2020 2021 2021 Bud vs 2020 Fcst Incr / (Decr) from 2019 ORG Basis (in 000's) Actual A Budget R Budget Forecast Budget $ % $ % ADR Revenue Food & Beverage 26,314 28,077 10,371 8,725 18,456 9,731 111.5% (7,858) -29.9% Retail 16,313 17,398 8,496 5,853 13,360 7,507 128.3% (2,953) -18.1% Duty Free 6,189 6,709 2,173 1,917 3,599 1,682 87.7% (2,590) -41.8% Personal Services 3,847 3,966 1,900 1,519 3,900 2,381 156.8% 53 1.4% Advertising 7,326 8,103 4,176 5,048 5,153 105 2.1% (2,173) -29.7% Space Rental - Terminal 1,298 1,371 1,349 1,269 1,203 (66) -5.2% (94) -7.3% All other revenue 328 520 464 265 278 14 5.1% (50) -15.2% Total ADR Revenue 61,615 66,145 27,753 24,597 45,951 21,355 86.8% (15,663) -25.4% Overall, Total ADR Rev is recovering slightly faster than enplanements, driven by faster recovery in Retail and Services as those businesses are adjusting well to the changing demand and requirements Food & Bev is recovering line with enplanements Duty Free is recovering more slowly as international passenger volume recovery is slow 75 ADR Revenue aligned with passenger volume 76 3650 ADR Revenue per Enplanement (RPE) 2021 Airport Dining & Retail 2019 2020 2020 2020 2021 2021 Bud vs 2020 Incr / (Decr) from ORG Basis (in 000's) Actual A Budget R Budget Forecast Budget $ % $ % Rev per Enplanement RPE - Food & Beverage 1.02 1.05 0.81 0.86 1.01 $ 0.16 18.1% $ (0.00) -0.4% RPE - Retail Sales 0.63 0.65 0.66 0.58 0.73 $ 0.16 27.5% $ 0.10 16.3% RPE - Duty Free 0.24 0.25 0.17 0.19 0.20 $ 0.01 4.8% $ (0.04) -17.4% RPE - Personal Services 0.15 0.15 0.15 0.15 0.21 $ 0.06 43.4% $ 0.07 44.0% RPE - All Other Revenue 0.35 0.37 0.47 0.65 0.36 $ (0.28) -43.7% $ 0.02 5.3% RPE - Airport Dining & Retail $ 2.38 $ 2.48 $ 2.17 $ 2.42 $ 2.52 $ 0.10 $ 0.04 $ 0.14 $ 0.06 Overall, Rev per Enplanement (RPE) is up 5.9% from 2019 base year, driven by strong purchasing in Food & Bev and Retail categories from remaining passenger volume. Duty Free RPE declined, compounding deep decline in international passengers Personal Services RPE also declined significantly, partially due to governor mandate for continued closure of spa-like businesses. 77 ADR - Revenue per Enplanement Airport Dining & Retail Revenue per Enplanement: While we are seeing fewer passengers, these passengers are spending more money on a per passenger basis. Revenue per enplanement is up $0.14, or 6%, driven by Retail and Food & Beverage sales, partially offset by RPE declines in Personal Services and Duty-Free categories. 78 3630 Commercial Properties Revenue 2021 Commercial Properties 2019 2020 2020 2020 2021 2021 Bud vs Incr / (Decr) ORG Basis (in 000's) Actual A Budget R Budget FCST Budget $ % $ % Revenue In-Flight Kitchen Revenue 10,053 9,974 5,106 4,123 7,078 2,955 71.7% (2,975) -29.6% Land/Space Rents 5,122 6,120 6,120 6,221 6,022 (198) -3.2% 900 17.6% All Other Revenue 597 566 628 576 613 37 6.4% 15 2.6% Comm Properties Revenue: 15,773 16,660 11,854 10,920 13,713 2,793 25.6% (2,060) -13.1% In-Flight Kitchen revenue strongly impacted by decline in passenger volume, is recovering in line with enplanements. Land and Space Rents are fixed rate per sq ft and therefore are impervious to the drop in enplanements and grow as planned in 2021. 79 Commercial Properties Revenue Commercial Properties overview: In-flight Kitchen Concession Fee Revenue impacted by decline in enplanements. Expected to recover on similar timeline as enplanement recovery. Space rent remains relatively stable, as real estate leases based on rent per square footage are not impacted by the decline in enplanements. 80 3645 Terminal Leased Space Revenue 2021 Terminal Leased Space 2019 2020 2020 2020 2021 2021 Bud vs 2020 Fcst Incr / (Decr) from 2019 Org Basis (in 000's) Actual A Budget R Budget Forecast Budget $ % $ % Revenue Maintenance Service Fees 238 266 11 10 30 20 204.8% (209) -87.6% AlClear 1,536 1,682 1,004 1,053 1,170 117 11.1% (366) -23.8% US Gen Svcs Admin 2,555 1,735 2,110 2,396 1,981 (415) -17.3% (574) -22.5% All Other Space Rental 2,068 2,017 2,028 2,068 2,069 1 0.0% 1 0.0% Space Rental - Terminal 6,159 5,434 5,142 5,517 5,220 (297) -5.4% (939) -15.2% All other ORG 3645 revenue 1 - 0 22 0 (22) -100.0% (1) -100.0% Terminal Leased Space Revenue 6,398 5,700 5,152 5,549 5,249 (299) -5.4% (1,149) -18.0% TSA Maintenance Service Fees removed in 2020 lease amendment. AlClear pays a 10% concession fee on gross sales. Decline in revenue not as severe as decline in enplanements. USGS lease was amended in early 2020 which included a reduction in leased area. Remaining space rent lease terms are generally not tied to enplanement volume, and therefore remains fairly consistent between 2019 and 2021. Majority of space rent inside the terminal are tied to AERO rate based terminal lease rate, and is adjusted annually as that rate changes. 81 3690 Clubs & Lounges Revenue & Expense Clubs & Lounges Expenses (3690) 2019 2020 2020 2020 2021 2021 Bud vs 2020 Fcst Incr / (Decr) from 2019 Org Basis (in 000's) Actual A Budget R Budget Forecast Budget $ % $ % Clubs & Lounges Revenue 10,274 10,536 4,441 3,443 6,221 2,778 80.7% (4,053) -39.5% Clubs & Lounges Expenses 0 Base Management Fee 182 182 287 292 406 114 38.9% 224 122.6% Incentive Management Fee 243 266 250 331 41 (289) -87.5% (201) -83.0% Total Management Fee 425 448 536 623 448 (176) -28.2% 23 5.3% 3rd Party Direct Operating Expenses 3,331 3,917 1,911 1,911 2,534 623 32.6% (798) -23.9% B&O taxes 153 158 74 74 109 34 46.3% (44) -28.7% All other Clubs & Lounges expenses 55 (0) - 0 - (0) -100% (55) -100.0% Clubs & Lounges Expenses 3,964 4,523 2,521 2,608 3,090 482 18.5% (874) -22.1% Income from Operations 6,309 6,013 1,920 834 3,131 2,296 275.2% (3,179) -50.4% Club activity growth is directly tied to enplanements; with a significant portion of club activity from international passengers. International enplanements are recovering more slowly than domestic volume. Social distancing requirements limit passenger volume inside clubs, and therefore impact revenue recovery in 2021. 82 Clubs & Lounges: Revenue & Expense Clubs & Lounges overview: While Income from Operations remains positive and improves in 2021, there is a decline in profitability given current limitations on Lounge capacity, as well as the slow return of international enplanements Revenue is down (40%) vs base year, 2019; while, expenses are down (22%) vs the base year of 2019. 83 3690 Clubs & Lounges Activity Projections 2019 2020 2021 YOY % Change (Actual) (Forecasted) (Forecasted) (2020 - 2021) Guest Visits Airlines 87,844 13,306 37,306 180% Priority Pass 309,070 92,502 210,698 128% Day Pass/Other 4,231 1,312 2,786 112% Total Guest Visits 401,145 107,120 250,790 134% Revenue Airlines $ 2,689,296 $ 52,866 $ 1,038,468 1864% Priority Pass $ 7,440,756 $ 2,849,122 $ 5,056,756 77% Day Pass/Other $ 143,452 $ 66,657 $ 125,377 88% Total Revenue $ 10,273,504 $ 2,968,645 $ 6,220,601 110% NOI $ 6,309,000 $ 834,000 $ 3,146,143 277% Enplanement forecast information provided by Business Intelligence, Airline Service Development, Airport Dimensions 84 CAPITAL BUDGET AND DEBT SERVICE COVERAGE 85 Capital Projects- Summary Cash Flows (Figures in $000s) 2020 2021 - 25 Capital Projects CIP FCST 2021 2022 2023 2024 2025 TOTAL Construction Authorized (Status 5-6) NS NSAT Renov NSTS Lobbies C800556 156,246 93,014 32,956 - - - 125,970 International Arrivals Fac-IAF C800583 185,340 57,679 - - - - 57,679 Checked Bag Recap/Optimization C800612 19,748 95,000 100,000 113,500 111,000 96,429 515,929 2021-25 AFLD Pvmnt&Spprt Infr C800930 2,149 40,500 37,106 19,934 30,568 19,079 147,187 N. Terminals Utilities Upgrade C800717 8,538 8,577 8,344 5,280 4,941 - 27,142 Other Construction Authorized Capital Projects Multiple 125,451 128,497 75,651 36,483 20,889 5,885 267,405 Total - Construction Authorized 497,472 423,267 254,057 175,197 167,398 121,393 1,141,312 Design Authorized (Status 4) Widen Arrivals Roadway C800866 2,020 1,254 1,514 3,539 15,491 16,221 38,019 Checkpoint 1 Relocation C801093 989 3,600 29,306 3,564 - - 36,470 Perimeter Intrusion Detect Sys C800844 189 4,300 6,700 10,000 7,215 - 28,215 Condo Sound Insulation C200095 878 2,609 4,929 7,651 6,890 163 22,242 Other Design Authorized Capital Projects Multiple 26,145 64,567 61,053 85,621 111,698 143,283 466,222 Total - Design Authorized 30,221 76,330 103,502 110,375 141,294 159,667 591,168 Pending Authorization (Status 2-3) MT Infrastructure Upgrades C801202 277 3,222 4,070 3,788 3,817 18,772 33,669 South Satellite Improvement C801203 750 10,000 20,000 34,000 140,000 122,800 326,800 Apartment Sound Insulation C200096 - 64 6,218 13,554 11,342 20,547 51,725 Zone 6&7 Reconfiguration C801204 - 5,000 30,000 30,000 25,000 10,000 100,000 Other Pending Capital Projects Multiple 7,217 31,044 217,917 273,040 303,024 238,891 1,063,916 Total - Pending Authorization 8,244 49,330 278,205 354,382 483,183 411,010 1,576,110 Subtotal 535,937 548,927 635,764 639,954 791,875 692,070 3,308,590 CIP Cashflow Adj Reserve C801141 - (84,693) 50,816 33,877 - - - Grand Total 535,937 464,234 686,580 673,831 791,875 692,070 3,308,590 * Cash flows and budgets are preliminary and may substantially change 86 Debt Service Coverage Debt Service Coverage per SLOA in $000's 2020 Budget 2020 Fcst 2021 Bud Revenues Aero 401,340 296,566 389,342 Non-aero 283,167 116,684 191,637 Total Revenues 684,507 413,250 580,979 O&M 377,306 342,508 338,475 NOI 307,201 70,742 242,504 CARES grant non-op revenue 53,000 3,500 Other net non-operating 1,027 5,038 2,543 Available for debt service 308,228 128,780 248,547 Debt Service Gross debt service (net of cap i) 262,479 252,654 279,886 CFC offset (23,657) (13,928) (19,153) Port-wide coverage for 2019 was 1.95X and the average PFC offset (67,348) (38,258) (47,216) of the past five-years 2015-2019 has been 1.79x CARES grant debt service offset - (105,901) (29,732) Net Debt Service 171,474 94,566 183,786 Debt Service Coverage 1.80 1.36 1.35 CARES grant used for debt service treated as offset per SLOA. 87
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