ITEM NO.   7a Supp 
DATE OF 
MEETING October 25, 2011 

2012-2016 Draft Plan of Finance 

October 25, 2011

Topics 
Background and Assumptions 
2012-2016 Capital Funding 
Forecasted Debt Service Coverage 
Seaport Capital Deferrals 
Refunding Savings Contribution to tax Levy Scenario 



2

Draft Plan of Finance 2012-2016 
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 2012-2016 Plan is based on: 
Division capital improvement plans (CIPs) discussed with the
Commission on September 27, 2011 
Division operating budgets and forecasts discussed with the
Commission on October 4, 2011. 
Airport is a self-funding operation 
Seaport operating income supports its CIP 
Real Estate CIP is supported by the tax levy 
The tax levy assumption is $73.5 million per year 2012-2016 

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: 
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: 
1.5x debt service for Seaport debt 
1.25x debt service for Airport debt 

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 2012-2016 
2012-2016
Aviation Funding Sources                 ($mil.)
Net income                      222
Operating funds                     28
(1)
Tax levy                          10
Grants                          72
Passenger Facility Charge                53
Customer Facility Charge (2)              57
Existing revenue bond proceeds           109
Future bond proceeds                 543
TOTAL                  1,094
Aviation CIP
Committed                    444
Business Plan Prospective               651
TOTAL                  1,094
(1) Highline capital spending (excludes expense spending by tax levy)
(2) Includes proceeds of CFC-paid bonds

6

Seaport Capital Funding 2012-2016 
2012-2016
($mil.)
Seaport Funding Sources
Net income                      40
Operating funds                     22
Grants                           2
Existing revenue bond proceeds            5
Future revenue bond proceeds            201
TOTAL                  271
Seaport CIP
Committed                    42
Business Plan Prospective               254
TOTAL                  296
Funding Shortfall                      (25)

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Seaport Capital Funding 2012-2016 
Total of $25 million in project spending deferred beyond 2016 
$73 million needs to be deferred over the next three years due to
pile cap repairs 
Timing and cost of the repair are still uncertain 
Changes to the pile cap assumption will affect amount and
timing of deferrals 
A portion can be funded in 2015 
2012    2013     2014    2015    2016    Total 
Original CIP         31       49      60      76      80     296 
Change to CIP      (3)      (44)     (26)     48      0     (25) 
Final CIP          28       5       34      124     80     271 

8

Real Estate Capital Funding 2012-2016 
2012-2016
($mil.)
Real Estate Funding Source
Tax levy                          54
TOTAL                  54
Real Estate CIP
Committed                    21
Business Plan Prospective                33
TOTAL                  54

9

Corporate Capital Funding 2012-2016 
2012-2016
($mil.)
Corporate Funding Sources
Seaport Net Income                  17
Real Estate General Fund                5
Airport Net Income                   42
TOTAL                  64
Corporate CIP
Committed                    25
Business Plan Prospective                39
TOTAL                  64

10

Port-wide Revenue Bond Debt Service Coverage
2012-2016  Forecast 
Revenue Bond Debt Service Coverage 

2.8
2.58 
2.6
Income Available/revenue debt service                                                            2.45 
2.4                                          2.28 
2.2                         2.07 
2.01 
2.0
1.8
1.6        1.50                                                1.49 
1.44                                                  1.48 
1.40 
1.4
1.2
1.0
2012           2013           2014           2015           2016


First Lien                   All Revenue Bond Debt

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Seaport 2012-2016 Capital Budget Deferrals 
Seaport 2011 Capital Budget presented to Commission
on September 27th with follow-up on October 4th. 
Funding capacity analysis has determined that ~$73
million in projects must be deferred from 2012-2014 into
later years. 
Required deferral represents 50% of capital dollars
budgeted for those years: 
Delays projects that will extend the useful life of Seaport
assets 
Reduces ability to capitalize on opportunities to secure
new business 
Reduces ability to collaborate with industry to reduce
environmental impacts 
12

Seaport 2012-2016 Capital Budget Deferrals 
Following slides show projects most likely to be deferred
as indicated by gray shading.
Actual deferrals likely to vary due to new information and
changing circumstances. 
Project dollars left in Contingency Renewal and Replace
in 2014 to cover projects determined to be most critical. 



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Seaport 2012-2016 Capital Budget 

Capital Budget Summary  Prior to Deferrals 
$'s in 000's                         2012       2013       2014     2015     2016     2012-16
Commission Authorized/Underway     11,636     3,190    1,400      0       0   16,226
Pending 2012 Authorization          17,538     2,990     2,300    3,000     2,878   28,706
Pending Future Authorization            0     42,070    54,780   72,100    76,300  245,250
Small Projects                   1,400     1,200     1,333    1,025     1,000    5,958
Total                         30,574     49,450    59,813   76,125    80,178   296,140





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Seaport 2012-2016 Capital Budget 
Pending 2012 Authorization - Deferrals 

$'s in 000's                         Priority   2012      2013      2014      2015      2016     2012-16
P66 Apron Pile Wrap                2       500      500      500      500      378    2,378
Container Terml Strm Water Imp (Pilot)     2      1,000      300        0        0        0     1,300
T- 86 Grain Facility - Cathodic Protection    2        900      100        0        0        0     1,000
T104 Site Improvements              3      1,000     1,000     1,000       0       0     3,000
Total                                3,400     1,900     1,500      500      378     7,678



Shaded amounts represent spending deferrals 

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Seaport 2012-2016 Capital Budget 

Pending Future Authorization - Deferrals 
$'s in 000's                         Priority   2012      2013      2014      2015      2016     2012-16
T91 Substation Upgrades             2        0     1,000     1,000      500       0     2,500
Container Support Yd-3.5M TEU's #1      2        0    30,000       0       0       0    30,000
P66 Shore Power                 3        0    1,000    7,700    5,000       0    13,700
Second Gangway per Berth @ T91       3        0    1,000    3,500       0       0    4,500
T- 91 Railroad Spur Upgrade            3         0      150      960        0       0     1,110
T-115 Railroad Spur Upgrade            3         0      150      900       0       0     1,050
New Warehouse at Tank Farm          3        0       0    10,800    11,100       0    21,900
Contingency Renewal & Replace.        3        0    8,500    10,000    10,000    10,000    38,500
Total                                   0    41,800    34,860    26,600    10,000   113,260


Shaded amounts represent spending deferrals 

16

Refunding Savings Contribution to Tax Levy  
scenario for discussion 
Commission meeting October 11  request to evaluate the impact of a Seaport
contribution of  the savings from refunding the Terminal 18 Special Facility
bonds to reduce future tax levies 
Savings calculated based on current rates plus a cushion  present value
savings approximately $20 million 
Contribution would be made annually based on  the savings amount
realized in that year (old debt service minus new debt service) 
Contribution would pay costs otherwise funded with the tax levy, so the tax
levy can be reduced in those years 
Annual savings vary due to restructuring of debt service 
Total savings 2012  2016 estimate is $8 million; contribution is $4 million 
Seaport would have to defer an additional $4 million of projects to
accommodate the contribution 
$million       2012      2013      2014      2015      2016 
Levy reduction      1.1       1.2        1.2       0.4       0.2 
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Seaport 2012-2016 Capital Budget 

Additional Deferrals 

$'s in 000's                Priority   2012      2013      2014      2015      2016     2012-16
Seaport Green Port Initiative     1        470     1,090      800     2,500     2,500     7,360
Total                          470     1,090      800     2,500     2,500     7,360



Shaded amounts represent spending deferrals. 


18

2012 Planned Finance Activity 
Proceed with economic refundings as appropriate 
Currently meet savings target 
2001 First Lien Revenue bonds  Airport 
Other Potential candidates 
A portion of 2003 First Lien Revenue bonds  Airport 
1999 Sub lien Revenue bonds  Airport 
Airport bond issue to fund project spending 2012/2013 
Evaluate options for extending/replacing letters of credit
expiring in 2013 

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