ITEM NO: 7a_Supp_2____ _ 
DATE OF 
MEETING October 23, 2012 

2013-2017 Draft Plan of Finance 

October 23, 2012

Topics 
Background and Assumptions 
2013-2017 Capital Funding 
Forecasted Debt Service Coverage 
Finance Activity for 2013 



2

Draft Plan of Finance 2013-2017 
Each year at the end of the budget process, staff provides a
summary five-year Port-wide capital funding plan (The Draft Plan of
Finance). The 2013-2017 Plan is based on: 
Division capital improvement plans (CIPs) discussed with the
Commission on October 2, 2012 
Division operating budgets discussed with the Commission on
October 9, 2012 
Airport is a self-funding operation 
Seaport operating income supports its CIP 
Real Estate is supported by the tax levy 


3

Debt Service Coverage 
The Plan is developed to adhere to the Port's financial
management policies for prudent cash reserves and
leverage 
Operating funds maintain a minimum of 9 months O&M: 
6 months operating and maintenance (O&M) expenses in the general
fund 
10 months O&M expenses in the airport development fund 
Maximum 75% of tax levy used to pay General Obligation bonds
debt service 
Net income provides Revenue bonds coverage of: 
1.50x debt service for Seaport debt 
1.25x debt service for Airport debt 
Tax levy is sufficient to fund levy planned levy uses 

4

Funding Sources 
The Draft Plan of Finance includes funding from: 
Net operating income 
Operating fund balances (above minimum requirement) 
Existing and future revenue bond proceeds 
Passenger Facility Charges 
Customer Facility Charges 
Grants 
Tax levy 



5

Aviation Capital Funding 2013-2017 
The Airport funding plan is based on the current airline agreement 
2013-2017
Aviation Funding Sources                       ($mil.)
Net income                            243
Operating funds                           49
(1)
Tax levy                                 10
Grants                                102
Passenger Facility Charge                      106
Existing revenue bond proceeds                  72
Future bond proceeds                       872
TOTAL                      1,454
Aviation CIP
Committed                         597
Business Plan Prospective                      857
TOTAL                      1,454
(1) Highline capital spending (excludes public expense spending by tax levy)
6

Seaport Capital Funding 2013-2017 
Funding forecast is based on
continuation of the current                                                2013-2017
lease agreements at all                                                ($mil.)
container terminals.          Seaport Funding Sources
Capital spending capacity is:        Net income                                 120
$296 million  5yrs.              Operating funds                                     74
$718 million  10 yrs.            Grants                                             3
(1)
Tax levy                                 2
Potential modification to the
lease structure based on         Existing revenue bond proceeds                  12
tenant negotiations could         Future revenue bond proceeds                   85
significantly reduce capital          TOTAL                                    296
capacity. 
Seaport CIP
Compared to baseline
Committed                         56
scenario capital spending
capacity declines to:             Business Plan Prospective                       240
$174 million - 5-yrs               TOTAL                                           296
$281 million - 10-yrs 
(1) Argo Yard Roadway capital spending (excludes public expense spending by tax levy)

7

Real Estate Capital Funding 2013-2017 
2013-2017
($mil.)
Real Estate Funding Source
Tax levy                          68
Existing revenue bond proceeds            1
TOTAL                  69
Real Estate CIP
Committed                    37
Business Plan Prospective                32
TOTAL                  69

8

Corporate Capital Funding 2013-2017 
2013-2017
($mil.)
Corporate Funding Sources
Airport Net Income                     30
Seaport Net Income                     12
Real Estate General Fund                   2
(1)
Tax levy                              1
TOTAL                    45
Corporate CIP
Committed                       26
Business Plan Prospective                   19
TOTAL                    45
(1) Corporate capital spending allocated to the Real Estate division after the Real Estate
general fund no longer meets minimum fund balance requirement.

9

Port-wide Revenue Bond Debt Service Coverage
2013-2017  Forecast 
Revenue Bond Debt Service Coverage 

5.5                                                           5.13 
4.97 
Income Available/revenue debt service  5.0
4.43 
4.5
4.0
3.45               3.49 
3.5
3.0
2.5
2.0         1.57               1.56               1.63               1.54               1.47 
1.5
1.0
2013           2014           2015           2016           2017


First Lien                      All Revenue Bond Debt

10

2013 Planned Finance Activity 
Proceed with economic refundings as appropriate 
Possible refunding candidates: 
2003B First Lien Revenue bonds  Airport 
2004A GO bonds  Seaport & Real Estate 
2003 Special Facility (Fuel Facility) Revenue bonds  Airport 
Airport bond issue to fund project spending 
2013/2014 issuance 
$200 - $300 million 
Evaluate options for extending/replacing letters of credit
expiring in 2013/2014 

11