7b Supp

Item No.:                    7b_supp 
Meeting Date:           October 7, 2014 
Aviation Division 
2015 Operating and Capital
Budget Briefing 
October 7, 2014 

1

2015 Budget Highlights 
Activity growth:        Cost Containment 
2014 Enplanements      O&M +3.7% vs. 2014
+7.1% vs. 2013            Budget 
2015 Enplanements      CPE Down 7% vs. 2014
+4.0% vs. 2014 fcst.         budget 
Non-Aero Revenue     Bottom line
Growth:             Improvement 
2014 +9.7% vs. 2013      Net cash flow +$13.2
2015 +6.7% vs. 2014       million vs. 2014 budget 
forecast                D/S coverage 1.40x vs.
2014 budget of 1.30x 
2

Enplanement Growth Higher 
25.0
2.5%
2.5%
2.5%
Enplaned passengers in Millions                                   2.5%
3.0%  3.0%
3.0%
20.0                                                         3.0%
3.0%
4.0%
7.1%
4.7%
2.7%          4.0% 1.2%
15.0       4.5%       -3.0%  1.0%

10.0

5.0

0.0
2006  2007  2008  2009  2010  2011  2012  2013  2014  2015  2016  2017  2018  2019  2020  2021  2022  2023  2024
Fcst   BUD
2015 Budget Forecast          2014 Budget Forecast          SAMP Forecast
2015 Budget Forecast                2014 Budget Forecast                Sustainable Airport Master Plan 
2013 actual:  4.7%                 2013 forecast: 4.2%                 2014-2018: 3.8% 
2014 forecast: 7.1%                 2014 budget:  3.0%                 2018-20123: 3.2% 
2015 forecast: 4.0%                 2015  2023:  2.2%                 2023-2024:  2.6% 
2016  2020:  3.0% 
2021  2024:  2.5% 
3

2015 Expense Summary 
Budget approach: 
in $000's
Identify and segregate
2014 Approved Budget            164,028 
major non-recurring
Less: 2014 exceptions to baseline:        (6,008) A
costs as exceptions from
2014 Baseline Budget             158,020 
baseline budget 
2015 Baseline Budget:
Cost increases                    6,793 B          Manage growth of
Savings/budget cuts                 (6,726) C             baseline budget 
Proposed 2015 budget requests         5,152 D
Budget based on actual
2015 Proposed Baseline Budget       163,239        3.3%
spending needs, not
2015 Exceptions to Baseline Budget      6,820 E            prior budget 
2015 Proposed Budget            170,059       3.7%
Baseline budget growth
driven by airport
growth 

4

2014 Budget Exceptions (A) 
Sustainable airport master
plan is a multi-year study that
in $000's                            2014
supports the Century Agenda
Exceptions to Baseline Budget                  objective of meeting the
Sustainable Airport Master Plan (CA)       2,300      region's air transportation
needs at Sea-Tac for the next
Regulated Materials                  2,356      25 years 
International Incentive (CA)                902     Regulated material costs are
ADR Master Plan & Implementation        450      driven by capital projects 
Total Exceptions to Baseline Budget      6,008    International incentives are
contractual obligations based
on an existing program. This
supports the Century Agenda
objective of doubling the
number of international
flights and destinations 
The ADR master plan and
implementation is a multiyear
program 

5

2015 Budget Expense Drivers 
Baseline Cost Increases (B) 
2015 Baseline Cost Increases:                  in $000's         Payroll detail: 
Payroll Increases (before new FTE requests)                              Additional FTE's in 2014: 
(4) Additional FTE's during 2014            298
(4) Firefighters to reduce overtime 
Other adjustments for existing FTE's        497
2015 Budget - standard payroll increase     2,564                           Other payroll increases: 
Total Payroll Increase (before new FTE's)          3,359                  Job evaluation outcomes 
Contractual Increases                                                  (1) FTE transfer from Corporate 
Janitorial contract                       873                               Annualized impact of 2014 mid-year
FIS Management contract (CISS)         396                           hires (new in 2014 budget) 
Parking System - Scheidt Bachmann       150
Other contract increases                187
Total Contractual Increases                  1,606         Utilities: 
Utility cost increases                                                Natural gas increase 
Natural Gas increase                  623
Projected 9.7% increase in natural 
Electricity increase                     187
gas consumption 
Garbage disposal increase              237
Expected increase in fixed cost per
Other Utility increases                   152
therm 
Total Utility Cost Increases                    1,199
Non-Aero costs related to revenue growth
B&O tax increase                   192
Increase in credit card fees               175
VIP lounge expenses                 262
Total Non-Aero Cost Increases                 629
Total 2015 Baseline Cost Increases                6,793
6

2015 Budget Expense Drivers 
Baseline Budget Savings (C) 
2015 Baseline Budget Savings:                in $000's      Other Payroll Savings  $1,004 
Reverse one-time items in 2014 Budget               2,641          $155K  lower new hire rates 
$157K  (3) positions eliminated 
Increased Payroll Charges to Capital (existing FTE's)       1,107
$505K  represented employee contract
Payroll Savings - repurpose (13.9) FTE's                550           budget corrections 
Other Payroll savings/cuts (zero based budgeting)        1,004          $168K  revised overtime assumptions 
Reduction in B&O tax (loading bridges)                 298          $19K  other payroll savings 
Other Non-Payroll savings/cuts (zero based budgeting)     1,125
Other Non-Payroll Savings - $1,125 
Total 2015 Baseline Budget Savings              6,726
$348K reduce RCF expenses to reflect
trend in actuals 
$211K reduced demand for building
management services, due to (3)
buildings single tenant occupied 
$167K  reduction in Outside Services
reflects changing Environmental program
needs 
$150K  remove Financial Consultant,
revised amount in 2015 Budget Requests 
$100K  remove ADR "Thanks Again"
program 
$60K  remove Parking Consultant,
revised amount in 2015 Budget Requests 


7

2015 Budget Expense Drivers 
Baseline Budget Requests (D) 
Budget Request detail: 
2015 Baseline Budget Requests:          in $000's     Capital Program Support: 
$664K  (14) additional FTE's 
Capital Program Support                    664
Safe, Secure Airport: 
Airport Strategies:                                        $280K  (3) additionalramp controllers 
Safe, Secure Airport                     300       Customer Needs/Capacity: 
$242K  (3) additionalFTE 
Customer Needs/Capacity               423         $100K  On-call gate planningsupport 
$50K  Curbside Traffic Mitigation Study 
Asset Management                 1,527
Asset Management: 
Customer Service                     288          $400K  Arc Flash phase II study 
$539K  (6) additionalFTE 
Environmental Innovation                   30 
$146K  manual encoder contract for C60 baggage
Airline Cost Management                 100          system 
$442K  other Asset Management 
Non-Airline Revenue Development           1,010       Customer Service: 
$288K  Quality Jobs impact on CISS contract 
Employee/Organizational Development         172
Non-Aero Revenue Development: 
Community Partnership                 150         $250K  Garage Facility Improvements 
$125K  Music Initiative 
Other                              487
$183K  parking initiatives (pre-booking, parking
Total 2015 Baseline Budget Requests         5,152         consultant,search engine marketing) 
$200K  real estate development: owners liaison
costs (reimbursable) 
$252K  other Non-Aero 
Community Partnership: 
$150K  Noise program (2) feasibility studies
(apartment building and church) 

8

2015 Budget Expense Drivers 
Exceptions to Baseline (E) 
in $000's                            2014     2015
Exceptions to Baseline Budget
Sustainable Airport Master Plan (CA)       2,300    2,900
Regulated Materials                  2,356    2,642
International Incentive (CA)                902      378
ADR Master Plan & Implementation        450     450
Grant funded portion - Burien NERA 3               450
Total Exceptions to Baseline Budget      6,008    6,820
Commitments under international incentive program are less in 2015 
2015 budget includes $500K for land development pilot program with FAA.
Included as an exception are the amounts to be reimbursed from the FAA
and the City of Burien totaling $450K 

9

FTE Changes 
2015 Proposed Budget FTEs                          FTEs   %
2014 Approved Budget                             858.5
Firefighters - Grade D (to reduce overtime)                      4.0
Airport Parking Marketing Manager (transfer in from Public Affairs)     1.0
Airport Security Operations Supervisor (position eliminated)         (1.0)
2014 Baseline                                 862.5  0.5%
2015 Budget Changes:
Vacant Positions Repurposed in 2015:                    (13.9) -1.6%
New FTE's Driven by Capital Program:                    14.0  1.6%
New FTE's Driven by Operational and Strategic Needs:           14.4  1.7%
Net Change in FTEs:                               14.5  1.7%
2015 Budget Proposed FTEs                          877.0
Capital program driving increase in FTEs 

10

Expense Summary 
2013    2014    2014    2015   Budget Change
in $000's                      Actual    Budget   Forecast   Budget     $ %
Operating Expenses:
Payroll                             92,998     99,709     96,099   104,191      4,481        4.5%
Outside Services                     33,996     31,603    32,980    32,534           931    2.9%
Utilities                                  12,937      13,650      14,348     14,796            1,146         8.4%
Other Airport Expenses                22,281    18,884    20,325    18,375          (509)   -2.7%
Airport O&M Expenses          162,211       163,846       163,753       169,895    6,049   3.7%
Corporate                        35,590    42,718    41,996    43,715           996   2.3%
Police Costs                        16,581     16,982     16,982    17,413           431    2.5%
Capital Development/Other Expenses       11,538    15,437    13,982    16,922          1,486       9.6%
Costs from other Divisions           63,709         75,137         72,960        78,050    2,913   3.9%
Total Operating Expense           225,920        238,983        236,713        247,945    8,962   3.8%
2015 Payroll costs include new FTEs 
CDD costs include project costs charged to expense, e.g., South Satellite
Interior Improvements project 

11

Non-Aeronautical NOI 
2013     2014     2014     2015      Budget Change
in $000's                        Actual     Budget    Forecast    Budget       $ %
Non-Aero Revenues
Rental Car                          39,839     41,167     44,909      44,998      3,831          9.3%
Public Parking                         52,225      52,138     56,103      58,925       6,788         13.0%
Airport Dining and Retail                   41,551      43,714      45,489      49,883       6,170          14.1%
International Clubs and Lounges               1,051       1,200      1,800       1,966        766     63.9%
Ground Transportation                    7,958      7,881      7,988       8,481       600      7.6%
Employee Parking                     5,461      6,292      6,292      7,115       824     13.1%
Utilities                                      6,332        6,891        6,427         8,377        1,486            21.6%
Other                            6,657      7,170      7,648      8,812      1,641         22.9%
Total Non-Aero Revenues            161,075    166,453   176,655    188,558          22,106    13.3%
Non-Aero Expenses
RCF Operating Expense                  7,049      8,506      8,020      8,011      (495)     -5.8%
Operating Expense                     64,204     73,136          71,222      80,280           7,144          9.8%
Share of terminal O&M                 20,055     22,547     22,225      23,002       456      2.0%
Less utility internal billing                     (17,294)            (18,307)     (18,307)             (20,334)       (2,027)      11.1%
Operating Expense                 74,014    85,882    83,161     90,960     5,079     5.9%
Net Operating Income               87,061    80,571    93,495     97,598    17,027    21.1%
Less: CFC Surplus 1                      (4,594)     (4,623)     (5,927)      (4,309)       314      -6.8%
Adjusted Non-Aero NOI             82,466    75,948    87,567     93,289    17,342    22.8%
Debt Service                         46,434     46,504          45,892      44,035          (2,469)     -5.3%
Net Cash Flow 2                  36,032    29,444    41,675     49,254    19,810    67.3%
Note:
(1) $3M in commercial paper will be paid down in 2015, which reduces both CFC Operating Revenues and the related CFC surplus.
(2) Non-Aero cash flow is the primary source of airline revenue sharing. Strong growth in Non-Aero revenue is reflected in 2015 increase
in airline revenue sharing.

12

Aeronautical NOI 
2013     2014     2014     2015    Budget Change
in $000's                    Actual     Budget    Forecast    Budget      $ %
Revenues:
Movement Area                 77,028         74,590         74,442         78,706     4,117   5.5%
Apron Area                     7,909         10,214         10,210         11,351     1,136   11.1%
Terminal Rents                   147,339     144,641     144,668     153,003      8,362    5.8%
Federal Inspection Services (FIS)          7,771           8,617           8,726          10,294      1,677   19.5%
Total Rate Base Revenues         240,047    238,063    238,047    253,354          15,292   6.4%
Commercial Area                  8,487          9,517         7,761         8,445        (1,072)  -11.3%
Subtotal before Revenue Sharing     248,534    247,580    245,807    261,799          14,220   5.7%
Revenue Sharing                  (9,901)     (6,136)    (11,140)         (19,267)         (13,131)  214.0%
Total Airline Revenues           238,633    241,443    234,667    242,532           1,089   0.5%
Operating Expense                 151,906     153,101     153,552    156,985      3,884    2.5%
Net Operating Income            86,727     88,342    81,115    85,547         (2,795)       -3.2%
Debt Service Rate Base              80,654      80,631     80,209     83,284      2,653    3.3%
Debt Service Exclusion                 743       1,604          1,604          1,539       (64)   -4.0%
Net Cash Flow                 5,330     6,108      (697)     724       (5,384)      -88.1%


13

Budget Summary 
2013    2014    2014    2015    Budget Change
in $000's                       Actual    Budget   Forecast   Budget     $ %
Operating Revenues:
Aeronautical Revenues                238,633    241,443    234,667   242,532     1,089       0.5%
SLOA III Incentive Straight Line Adj         14,304     (3,576)         (3,576)         (3,576)      - 0.0%
Non-Aeronautical Revenues             161,075    166,453   176,655   188,558    22,106   13.3%
Total Operating Revenues           414,011        404,320        407,747        427,514   23,194   5.7%
Total Operating Expense            225,920        238,983        236,713        247,945    8,962   3.8%
Net Operating Income             188,092        165,337        171,034        179,569   14,232   8.6%
CFC Surplus                       (4,594)         (4,623)        (5,927)        (4,309)     314   -6.8%
Net Non-Operating items paid from ADF       1,353     2,331     2,152     1,504     (828)  -35.5%
SLOA III Incentive Straight Line Adj        (14,304)     3,576     3,576     3,576       - 0.0%
Debt Service                      (127,831)   (128,738)   (127,705)   (128,858)           (120)   0.1%
Adjusted Net Cash Flow             42,716        37,883        43,130        51,482    13,599  35.9%
Key Measures
Cost per Enplanement (CPE)              11.85         12.68         11.88         11.79     (0.89)  -7.0%
O&M per Enplanement               13.00        13.42        12.72        12.81     (0.61)  -4.5%
Non-Aero Revenue per Enplanement         9.27     9.34     9.49     9.74        0.40   4.3%
Debt per Enplanement                 146.59         133.72         133.72         129.25     (4.47)  -3.3%
Debt Service Coverage                  1.33      1.30      1.34     1.40      0.10   7.8%


14

Capital Budget Overview 
Four major programs or projects continue to dominate
capital budget: 
NorthSTAR  four projects including expanded NSAT 
Runway 16C  construction will start in 2015 
Baggage Optimization  design progressing 
International Arrivals Facility (IAF)  updating cost estimate 
Exercising caution until cost of IAF is known: 
31 projects presented to AV Investment Committee 
12 eliminated or deferred 
8 proposed for inclusion in capital budget 
11 with compelling justifications, but not included in budget 

15

Capital Budget Summary 
Cash Flows (Figures in $000s)          2015-19
CIP Categories               Projects   2014    2015    2016    2017    2018    2019    Total
A. Commission Authorized/Underway        96  196,305   278,222        349,630  310,052  211,360   172,274       1,321,538
B. Pending 2014/2015 Authorization         12    1,635   26,135   32,250         8,372    2,515    1,298    70,570
C. Pending Future Authorization             5      70      30     10,110         9,441    6,500    6,500    32,581
D. Small Projects                      8    5,468    5,200    5,200    4,000    4,000    4,390    22,790
Total                               121   203,478   309,587         397,190   331,865   224,375   184,462        1,447,479
Proposed New Projects              8    350    9,195   22,199       10,705        1,800    -      43,899
Allowance CIPs                  2   3,000   10,000   24,000       34,000       43,000       117,000        228,000
Total Proposed CIP                131  206,828  328,782       443,389  376,570  269,175  301,462       1,719,378

"Authorized" line includes total project budgets for projects with at least partial
commission authorization 
Proposing 8 new projects for inclusion in budget 
Allowance CIPs represent undesignated future spending for future new projects and
potential budget increases for existing projects 
2015  2019 will have sustained high levels of spending as major projects will be
under construction 

16

Capital Budget Summary 
With Major Projects Broken Out 
$500,000

$450,000

$400,000

$350,000
$300,000
$250,000

$200,000

$150,000

$100,000

$50,000

$0
2015         2016         2017         2018         2019
Existing projects       Four Major Projects       New Projects       Allowance CIPs           17

Large Projects 
International Arrivals Facility                NorthSTAR 







18

Large Projects 
Baggage Optimization               Runway 16C/34C Reconstruction 






19

A. Projects Authorized/Underway 
Cash Flows (Figures in $000s)          2015-19
A. Commission Authorized/Underway   CIP    2014    2015    2016    2017    2018    2019    Total
NorthSTAR program             5 CIPs     21,583        43,420   72,854       110,025  107,223   92,491   426,013
International Arrivals Facility           C800583     8,654    51,748   134,050   123,799    23,683           1,939    335,219
Baggage Recapitalization/Optimization   C800612     4,287    20,000   45,000        50,000        60,000        50,000   225,000
Runway 16C/34C Reconstruction      C800406    2,046   56,000   37,503        3,675                  97,178
SSAT HVAC, Lights, Ceiling         C800376     346     220   - 6,000       10,000        16,000    32,220
Highline School Insulation            C200007    11,369          7,256   15,681                 3,394             26,331
Main Term Low Voltage Sys Upgrade   C800061     576    7,500    9,048    2,388                  18,936
GSE Electrical Charging Stations      C800335     3,140    13,802                                   13,802
Vertical Conveyance Modernization     C800251    1,608    4,986    5,986    2,084                   13,056
CCTV Camera/Data Improvement      C800642     387    2,000    5,000    3,612                 10,612
Airfield Pavement Replacement       C102573    4,809    7,874                                  7,874 
Single Family Home Insulation        C200093    3,276    3,010    3,183                            6,193 
Parking Garage Lights             C800581      185    2,000    2,000    1,000     550     501     6,051 
Aircraft RON Parking USPS         C800254    33,027         4,558                                 4,558 
2014-2015 Roof Replacement        C800637     145    4,000     270                          4,270 
Central Plant Preconditioned Air       C800238     4,090    3,064    1,000                             4,064 
Other projects (76)                          96,777         46,784   18,055         7,469    6,510    11,343    90,161
Total                                    196,305   278,222         349,630   310,052   211,360   172,274        1,321,538
Four largest projects (highlighted in yellow) account for 82% of total 
Estimated cost for International Arrivals Facility is under review 
SSAT HVAC may be delayed/canceled based on master plan outcomes 

20

B. Projects Pending 2014/2015
Authorization 
Cash Flows (Figures in $000s)          2015-19
B. Pending 2014/2015 Authorization    CIP     2014    2015    2016    2017    2018    2019    Total
Emergency Backup Power         C800538     200   15,000   21,080                            36,080
ADR Infrastructure                C800638      384    2,000    5,000    2,000    1,515            10,515
Main Terminal HVAC Upgrade        C800240            500    4,000    3,875                  8,375 
Passenger Loading Bridges         C800653     752    1,250    1,000    1,000    1,000    1,298     5,548 
Air Cargo Road Safety Improvements    C102162      124     403    1,020    1,497                    2,920 
Domestic Water Piping            C800657     100    1,750     100                          1,850 
Fuel System Modifications          C800692      25    1,075                                   1,075 
Cargo 4 (UAL Freight Bldg.)          C800645             1,000                                    1,000 
Security Checkpoint Wayfinding       C800388             857                                    857
IWS Segregation Meters           C800655      50     800      50                           850
Replace Emergency Power Switch     C800587            850                                 850
Concourse A Bridge Level           C800638             650                                    650
-
Total                                     1,635    26,135   32,250          8,372    2,515     1,298     70,570




21

Proposed New Projects 
Cash Flows (Figures in $000s)          2015-19
CIP    Description               Budget   2015   2016   2017   2018   2019   Total
1 C800717 North Loop Interconnect Piping      11,950    200   3,950   6,000   1,800        11,950 
2 C800724 New Power Center, Conc. C        9,850   2,238   2,957   4,655               9,850
3 C800699 Automated Electrical Switching      9,600   2,000   7,600                     9,600
4 C800688 Construction Logistics Expansion     6,400   3,600   2,400     50               6,050
5 C800702 Roof Replacement, Conc. C        3,820    267   3,553                     3,820
6 C800716 Central Term Mezz Stairways       1,250    300    950                     1,250
7 C800706 Grease Interceptor              939       250    689                      939
8 C800648 Emergency Phones              440       340    100                      440
TOTAL                 44,249   9,195  22,199      10,705       1,800    -    43,899 

1.    North loop piping will expand piping for chilled water and steam supply to North Satellite from
Central Mechanical plant. Necessary for North Satellite expansion. Helps prevent service outages. 
2.    Concourse C power supply is at capacity. Can't meet tenant growth needs without upgrade. 
3.    Automated system allows for remote operation of electric (12.5 kv, 480 v) switch gear to prevent arc
flash hazards. Aides employee safety. Required by new electrical code. 
4.    Construction Logistics Expansion project needed to support major capital projects 
5.    Concourse C roof must be replaced, skylights also. Roof is 23 years old.
6.    Center terminal mezzanine level needs additional stairs to provide required egress to permit leasing
currently unoccupied space for which there is customer demand 
7.    Need additional grease interceptor to allow additional restaurant on Concourse C 
8.    Emergency phones in garage 

22

New Projects  Delay Approval 
Cash Flows (Figures in $000s)          2015-19
CIP    Description               Budget   2015   2016   2017   2018   2019   Total
1 C800690 B2 Building Expansion          18,200   1,450   9,500   6,900    350        18,200 
2 C800697 Restroom Room Upgrades B,C,D     10,750    750   3,700   4,300   2,000        10,750 
3 C800722 Central Terminal HVAC Upgrade      4,900    500   2,000   2,400               4,900
4 C800695 C3 Holdroom Expansion          3,300   3,300                           3,300
5 C800701 Hardening Serv Tunnel Entrance      1,953    391    781    781               1,953
6 C800727 Cargo Hardstand IWS Improvements    1,850   1,850                           1,850
7 C800709 Term Wide Voice Paging System     1,500   1,500                           1,500
8 C800705 Fire Dept ARFF Vehicle          1,450   1,450                           1,450
9 C800711 A14 Ramp                 1,400   1,400                           1,400
10 C800708 S. Util. Tunnel Steam Piping Upgrade   1,000   1,000                           1,000
11 C800712 Additional APC Kiosks            500       500                             500
-
TOTAL                 46,803  14,091      15,981      14,381       2,350    -    46,803 

All projects have compelling justifications 
Projects will be re-evaluated in Q1 2015 for possible mid-year approval 

23

Capital Budget Affordability 
Affordability determined by two comparative
measures with peer airports. Goal is to be
within middle third: 
Cost per enplaned passenger 
Debt per enplaned passenger 
Using full budget, cost increases to existing
projects to be "managed" within existing
program budget through use of Allowance
CIPs, savings and deferrals. 
24

CPE Comparison  Most Recent 
2013 CPE For 22 Peer Airports
$30.00

$25.00

$20.00

$15.00
27.29
26.06 25.46

$10.00            20.39
17.61
16.87
15.68 15.27
13.16
12.37 12.34 11.94 11.90 11.45 11.17
$5.00                                                     10.52 10.16 9.79
7.20  6.76
5.53
3.84
$0.00
IAD JFK EWR MIA SMF LGA SFO ORD BOS PHL LAX SJC SEA DEN PDX IAH SAN DTW DFW MSP PHX SLC     25

Debt/Enpl. Passenger - Most Recent 



26

Spending "Cushion" Allowing for
New Projects/Cost Increases 
Five-year capital plans tend to be optimistic. 
Historically, have not spent above 70% of five year capital budget. 
Project savings, deferrals or changing customer needs cause project
spending to be less than plan. 
Intent is to absorb any IAF cost increase within existing capital plan limits.
$000s   2015-19
Total
Calculation of Possible Underspending
Capital spending ($000)                  1,719,378
Less NSTAR, IAF, 16C                 (858,410) 
Subtotal                             860,968 
Spending reduction factor (10 - 25%)             22%
Projected underspending                 188,600 
Five-Year Theoretical Capacity
Projected underspending                 188,600 
Allowance CIPs                      228,000 
Total                                 416,600 

27

Financial Forecast 
In $000's
2014 Bud 2015 Bud  2016    2017    2018    2019
Airline Revenue                241,443    242,532   266,064   288,618   302,236   298,400
Non-Airline Revenue            166,453    188,558   194,046   199,489   203,919   211,242
Total Revenue                407,896    431,090   460,110   488,107   506,155   509,642
Operating Expense             238,983    247,945   255,275   261,799   268,593   275,525
Net Operating Income           168,913    183,145   204,835   226,308   237,562   234,116
Net Non-Operating Income/Expense    2,769     1,504    2,836    2,906    2,988    3,073
CFC Excess*               (4,623)    (4,309)   (3,598)   (3,235)   (2,734)   (2,239)
Available for Debt Service         167,059    180,340   204,073   225,980   237,816   234,950
Net Debt Service              128,738    128,858   148,011   168,768   179,261   174,268
Net Cash Flow                38,321    51,482    56,062    57,212    58,554    60,682
Key Measures
Debt Service Coverage             1.30      1.40     1.38     1.34     1.33     1.35
Revenue Sharing                6,136    19,267    19,059    15,019    13,739    17,115
Passenger Airline CPE            12.68     11.79    12.58    13.28    13.53    12.94
Debt per Enplaned Passenger        142.0     129.2    136.5    142.4    141.6    143.6
* CFC collections in excess of CFC debt service/O&M are restricted and cannot be used for other revenue bond
debt service
28

CPE Comparison - Future 
$35.00
SEA Future CPE in 2021
$30.00

$25.00
CPE   Future CPE
$20.00

$15.00

$10.00

$5.00

$0.00
IAD JFK EWR ORD LAX MIA SFO SMF LGA BOS SEA DFW DEN PHL PDX SJC SAN DTW IAH MSP SLC PHX     29

Debt Per Enplanement - Future 
$400
Blue represents other airports in 2013
$350  343  340
Green represents SEA in 2019
$300          293

249
$250
230

198
$200
170  166
$150                                  144
129
115  115  115
$100                                                      93   89   88   84
69
$50

$0
0
SJC  IAD  MIA  SMF  ORD  DFW  DEN  SFO  SEA  DTW  LAX  BOS  SAN  IAH  PHL  MSP  PDX  PHX  SLC
2019
30

Past and Future Debt Levels 
Sea-Tac Airport 



31

Balanced Use of PFCs 
Historical Use of PFCs            1992 - 2013      Percent
Airfield (including Noise)         558,726,500          57%
Terminal                  413,462,500        43%
FIS -  0%
Total                       972,189,000
Total Use of PFCs              1992 - 2049      Percent
Airfield (including Noise)        2,037,244,255          43%
Terminal                 2,212,791,428        47%
FIS                         464,613,442          10%
Total                      4,714,649,125
PFCs are used to fund capital improvements and pay debt service on PFC
eligible projects. Costs paid by PFCs are excluded from airline rate base. 
"Balance" in use of PFCs requires long-term view of use by cost center 
$8.50 PFC level would generate approximately $70 million in additional
PFC revenue annually beginning in 2017. 
Could cash fund capital improvements or pay debt service on approximately $800
million in new capital spending. 
32

Next Steps 
IAF scope and cost estimate will be updated 
Will analyze forecasted rate impacts by cost
center, determine optimal deployment plan for
PFCs 
"Delayed" new projects will be reviewed and
proposed for approval in 2015 if prudent 
Funding plan will require revenue bond issue in
early 2015 
Will develop PFC application to FAA in 2015 for
future use on IAF and North Satellite 
33

APPENDIX  SUPPLEMENTARY
SLIDES 
34

Non-Aeronautical Key Indicators 
2013     2014     2014    2015     Budget Change
Actual    Budget   Forecast   Budget      $ %
Revenues per Enplanement
Parking                                3.01      2.93      3.01      3.04      0.12    4.0%
Rental Cars (excludes CFCs)                   1.64       1.61       1.67      1.69      0.08    4.9%
Ground Transportation                        0.46       0.44       0.43      0.44      0.00   -1.0%
Airport Dining and Retail                        2.39       2.45       2.44      2.58       0.12    5.0%
Other                                1.78      1.91      1.94      1.99      0.08    4.3%
Total Revenues                       9.27      9.34      9.49     9.74     0.40    4.3%
Primary Concessions Sales / Enpl             11.23     11.52     11.65     11.88      0.37   3.2%

Revenues per enplanement for all major categories increasing in 2015,
reflecting real growth in passenger spending 

35

Aeronautical Cost Drivers 
2013     2014     2014     2015     Budget Change
$ in 000's                         Actual (1)     Budget     Forecast    Budget       $ %
O&M             147,209   146,068  146,623      152,932   6,864  4.7%
Debt Service                      77,909           77,791     77,414     80,863          3,072    3.9%
Amortization                      18,959           20,001     20,029     24,393          4,392   22.0%
Space Vacancy                  (3,734)     (4,529)    (4,693)    (4,118)     410     -9.1%
TSA Grant & Other                 (296)         (1,269)    (1,326)      (715)         553     -43.6%
Total Rate Base Revenue Requirement    240,047     238,063    238,047          253,354    14,738   6.2%
(1) Based on 2013 financial statements, not revenue requirement in the final 2013 settlement.
Operating Expenses: 
Terminal - $1.4m increase in utilities expenses, $0.7m increase in janitorial services, $0.7m increase in
ERL, $0.6m increase in small works construction services (mostly SSAT renovation project), $0.6m
increase in divisional & corporate allocations, $0.5m increase due to non-aero space allocation
percentage decrease. 
FIS -$1m increase in contracted services. 
Debt Service: 
Increase to existing debt service amortization 
Amortization (use of ADF): 
FIMS/FIDS $1.2M, PeopleSoft Financial Upgrade $0.6M, SharePoint $0.5M
Vacancy - less publicly-accessible vacant space. 

36

Operating Budget Summary 
Airport growth driving growth in capital
program 
Expense growth and FTE growth are
moderate in comparison 
All key measures trending positive (see
following slides) 

37

Airport FTEs - Trend 


Growth in FTEs since 2011 driven by Rental Car busing and capital program 
Baseline FTEs essentially flat since 2012 

38

FTE Growth due to Operational &
Strategic Needs 
2015 Proposed Budget FTEs                               FTEs
New FTE's Driven by Operational and Strategic Needs:
Ground Transportation Controller                               1.0
Airline Systems Resource Coordinator                            1.0
Baggage Operations Systems Specialist                           1.0
Lean Practioner - Continuous Process Improvement (CPI)                1.0
Call Research Field Worker Position - increased hours                    0.3
Financial Analyst III - Finance & Budget                            1.0
Facility Master Record Drawing Manager                          1.0
Senior Infrastructure System Engineers (4 yr limited duration)               2.0
Lease Administration Specialist                                  1.0
Aviation Property Manager 2                                 1.0
Airport Dining & Retail Specialist                                  1.0
Electronic Technicians                                       3.0
Community Partnerships Highschool Interns - increased hours             0.2
Total Operational and Strategic FTEs       14.4
Less Repurposed FTE's (currently vacant)                        (13.9)
Incremental Increase to Operational and Strategic FTEs                0.5
Non-capital FTEs are largely absorbed in existing head count by
repurposing open positions 

39

FTE Growth due to Capital Program 
2015 Proposed Budget FTEs                             FTEs
New FTE's Driven by Capital Program:
Capital Project Liaison Manager, Baggage Optimization                 1.0
Maintenance Manager - Capital Program Support                   1.0
Operating Maintenance Engineer - Capital Program Support             1.0
Conveyance System - Capital Program Support                     1.0
Electricians - Capital Program Support                             2.0
Electronic Technicians - Capital Program Support                     2.0
Maintenance - Capital Support Specialist                          1.0
Art Program Coordinator                                  1.0
Architect 4                                              1.0
Building Department Assistant Manager                        1.0
Operations Program Development Manager, Runway 16C              1.0
Operations Program Development Manager, IAF & NorthStar            1.0
Total Capital Program FTEs       14.0
Capital program support requires additional staff for design
reviews and coordinating construction around operations 
40

O&M Expense per Enplanement 



41

O&M Expense Per Enplanement vs.
Peer Airports - 2013 



42

Non-Aero Revenue Per Enplanement 



43

CPE Trends 



44

Debt per Enplanement 



45

Debt Service Coverage 
New Airline Agreement in
2013 with Revenue
Sharing 





46

Projects Driven by Century Agenda 
Triple air cargo volume to 750,000 metric tons: 
Will complete Cargo 2 and 6 facility improvements in late 2014 
Make Sea-Tac Airport the west coast "Gateway of Choice"
for international travel and double the number of
international flights and destinations: 
South Satellite Interior Renovations (ongoing) 
New International Arrivals Facility (ongoing) 
Meet the region's air transportation needs for the next 25
years 
Baggage Recapitalization/Optimization (ongoing) 
Expand North Satellite to add gates (ongoing) 

47

Projects Driven by Century Agenda 
Meet all increased energy needs through conservation and
renewable sources: 
Stage 3 Mechanical Infrastructure Improvements (ongoing) 
Parking Garage Area Lighting Improvements (ongoing) 
Meet or Exceed Agency Requirements for Storm Water: 
IWS Segregation Meters (ongoing) 
Reduce air pollutants and carbon emissions: 
Pre-conditioned Air project (ongoing) 
Electrical ground service infrastructure and charging stations (ongoing) 


48

Projects Driven by Airport Strategies 
1. Operate a World Class Airport 
a. Safe and Secure 
o CCTV Camera/Data Improvements (ongoing) 
b. Anticipate/meet needs of airlines, tenant, travelers 
o NorthSTAR program (ongoing) 
c. Manage our Assets to Minimize Long Term Costs 
o Reconstruct Runway 16C/34C (ongoing) 
o Service Tunnel renewal and replacement (ongoing) 
o Roofing Project (New) 
2.Top 10 Customer Service Airports 
o SSAT Interior Renovations (ongoing) 

49

Projects Driven by Airport Strategies 
3. Lead in Environmental Innovation 
o IWS Segregation Meters(ongoing) 
o Garage Area Lighting (ongoing) 
4. Reduce Airline Costs
o Mechanical Energy Conservation (ongoing) 
5. Maximize Non-aero operating income 
o Concessions Infrastructure (ongoing)
6. Invest in Employee Development, Organizational 
Improvement, and Business Agility
o 2015 items within operating budget 
7. Develop Community Partnerships 
o Complete existing noise insulation projects 
50

C. Projects Pending Future
Authorization 
Cash Flows (Figures in $000s)          2015-19
C. Pending Future Authorization      CIP    2014    2015    2016    2017    2018    2019    Total
Airfield Ramp Pavement Replacement   C800483      30           5,900    6,500    6,500    6,500    25,400
Vertical Conveyance - Garage        C800398                           2,941                    2,941 
Fire Station Improvements           C800425                    2,280                            2,280 
South Access Property Acquisition     C800143                    1,500                           1,500 
Water Rights Supply Development     C800493      40      30       430                            460
-
Total                                       70       30      10,110          9,441    6,500     6,500     32,581

Airfield pavement replacement project succeeds existing
CIP for airfield pavement replacement 

51

D. Small Projects 
Cash Flows (Figures in $000s)          2015-19
D. Small Projects                CIP     2014    2015    2016    2017    2018    2019     Total
Aviation Small Capital              C100157        2                                       190       190
Aviation Small Jobs               C800017     2,388    2,086                                    2,086 
Aviation Small Capital              C800018      929      131                                       131
AV/IT Small Capital               C800066     1,249    1,200    1,200                            2,400 
Aviation Small Capital              C800099      900     1,369    1,500    1,500     731              5,100 
Aviation Small Jobs               C800100      -       414    2,500    2,500    2,500    2,086    10,000
Aviation Small Jobs               C800751                                             514      514
Aviation Small Capital              C800752                                      769     1,600     2,369 
-
Total                                     5,468     5,200    5,200    4,000    4,000     4,390     22,790

Small capital is primarily for vehicles and equipment under $300,000 
Small jobs is for construction projects less than $300,000 

52

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