Item 9a Supp-1 REVISED
ITEM NO. 9a Supp -1 DATE OF MEETING October 8, 2009 Port of Seattle 2010 Preliminary Budget Port-wide Total October 8, 2009 1 2010 Preliminary Budget 2008 2009 2010 '09 Bud to '10 Bud ($ in thousands) Actual Budget Budget Var $ Var % Operating Revenues 488,996 486,367 480,336 (6,031) -1.2% Operating Expenses 280,266 277,862 284,650 (6,788) -2.4% Net Operating Income bef. Depr. 208,730 208,506 195,686 (12,819) -6.1% Depreciation 144,208 157,036 158,575 (1,540) -1.0% Net Operating Income aft. Depr. 64,521 51,470 37,111 (14,359) -27.9% 2 2010 Preliminary Budget (without Environmental Expense) 2008 2009 2010 '09 Bud to '10 Bud ($ in thousands) Actual Budget Budget Var $ Var % Operating Revenues 488,996 486,367 480,336 (6,031) -1.2% Operating Expenses 280,266 277,862 284,650 (6,788) -2.4% Less: Environmental Expense (8,889) (5,687) (24,471) 18,784 -330.3% Adjusted Operating Expenses 271,378 272,175 260,179 11,995 4.4% Income before Depreciation 217,618 214,193 220,157 5,964 2.8% Depreciation 144,208 157,036 158,575 (1,540) -1.0% Income after Depreciation 73,410 57,157 61,581 4,424 7.7% 33 Net Operating Income Comparison Operating Revenues, Operating Expenses and NOI 600 500 400 In Millions of Dollars Revenues 300 Expenses NOI Before Depr. 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 09 Bud 10 Bud 4 Port-wide FTEs Summary Aviation Seaport Real Estate Capital Dev Corporate Totals 2009 Approved FTE's 833.1 61.8 151.1 271.3 472.7 1790 Mid Year Approval 2.0 1.6 1.0 3.7 2.0 10.3 Eliminated -14.0 -6.0 -3.0 0.0 0.0 -23.0 Transfers -1.0 0.0 0.0 -2.0 3.0 0.0 Adjusted 2009 FTE's 820.1 57.4 149.1 273 477.7 1777.3 2010 Budget Eliminated -76.2 0.0 -2.3 -5.0 -31.0 -114.5 Transfer 0.0 1.0 0.0 0.0 -1.0 0.0 New FTE's 2.5 2.0 8.0 0.0 4.5 17.0 Total 2010 Changes -73.7 3.0 5.7 -5.0 -27.5 -97.5 Proposed 2010 FTE's 746.4 60.4 154.8 268.0 450.2 1679.8 55 Port of Seattle 2010 Preliminary Budget for Corporate Professional & Technical Services October 8, 2009 6 2010 Corporate Budget Target Description Amount Notes 2009 Approved Budget 73,571,678 Add: Budget Transfers from the Airport 507,365 1.0 FTE, PLA, Airport Jobs, and ORCA Less: One-time Items in 2009 (289,262) Add: Approved Budget Adjustments 404,040 Items approved after 2009 budget was finalized. 2009 Baseline Budget 74,193,821 Less: Budget Reduction (4,675,080) 6.4% reduction from the 2009 approved budget. Add: Pay for Performance Increase 2,078,480 $1.18M contractual increase from Police. 2010 Prelim. Corp. Budget Target 71,597,220 2010 New Budget Additions 1,266,237 2010 Proposed Corp. Budget Target 72,863,457 7 Budget Cuts Summary Department Amount FTEs Public Affairs/Government Relations 600,000 -3.8 Economic & Trade Dev 1,870,631 -6.2 Human Resources & Development 144,968 -1.0 Information & Comm. Technology 572,060 -14.0 Finance & Budget 270,622 -1.0 Accounting & Financial Reporting 71,812 -1.0 Internal Audit 60,000 -1.0 Office of Social Responsibility 86,940 -1.0 Police Department 998,934 -2.0 TOTAL* 4,675,967 -31.0 * This equals to a 6.4% reduction from the 2009 approved budget. 8 2010 Budget Major Changes Major Budget Change from 2009 Budget (bef. New Request Items) Amt Change % 1) Estimated Payroll Reduction Estimated Pay for Performance/Wages Increase for 2010 2,078,480 OPEB Increase 98,820 Payroll Budget Reduction (VSP & Layoff) (1,339,956) -2.4% Net Payroll Reduction (837,344) -1.5% 2) Non-Payroll Reduction Supplies & Stock (80,572) -11.6% Outside Services (573,637) -5.2% Travel & Other Employee Expense (157,272) -7.8% Promotional Expense (149,612) -33.9% Worker's Compensation 68,721 54.5% Insurance Expense (154,203) -7.0% Advertising (286,913) -57.7% Charge to Capital (PLA) 260,879 7.8% Other (125,226) -4.0% Total Non-Payroll Expenses (1,719,592) -10.2% Total Budget Reduction (2,556,936) -3.5% 9 2010 Budget Additions 2010 Budget Additions Amount Port Centennial Planning 250,000 Workplace Responsibility Program 210,000 2 FTEs in HR&D for HCM Support 164,625 PCI Compliance Mandatory Audit 300,000 Self Funding Benefits Broker 150,000 Deferred Compensation Third Party Admininstrator 80,000 Other New Requests 111,612 Total 1,266,237 10 2010 Corporate Budget 2008 2009 2010 '09 Bud to '10 Bud In $ Thousands Actual Budget Budget $ % TOTAL REVENUES 1,727 1,470 1,527 57 3.9% EXPENSES Executive 1,599 1,540 1,550 9 0.6% Commission 899 867 894 28 3.2% Legal 3,012 2,703 2,753 49 1.8% Risk Services 2,768 2,861 3,026 164 5.7% Health & Safety 996 985 1,122 137 13.9% Public Affairs 4,356 4,270 4,143 (127) -3.0% Government Relations 1,097 1,347 1,422 75 5.6% Economic & Trade Development 1,645 2,099 - (2,099) -100.0% Human Resources & Development 3,973 4,165 5,122 957 23.0% Labor Relations 677 731 804 73 10.0% ICT 14,577 19,658 19,392 (266) -1.4% Finance & Budget 1,667 1,719 1,556 (163) -9.5% Accounting & Financial Reporting 5,863 6,541 6,876 335 5.1% Internal Audit 734 1,211 1,136 (76) -6.2% Office of Social Responsibility 1,246 1,647 1,478 (169) -10.2% Regional Transportation 402 498 508 10 2.0% Police 19,484 19,979 20,334 355 1.8% Contingency 4,200 750 750 - 0.0% Total Corporate Costs 69,196 73,572 72,865 (707) -1.0% Adjust for Airport Jobs 199 176 - 176 n/a Total Corporate Cost (adj. for Airport Job) 69,395 73,748 72,865 (883) -1.2% 11 2010 Corporate FTE Summary FTEs 2009 Approved Budget 472.7 2009 Transfers from Aviation Division 3.0 Health & Safety 1.0 Labor Relations (PLA) 2.0 2009 Mid-Year Approval (PLA) 2.0 Adjusted 2009 Total 477.7 Eliminated FTEs -31.0 Transfer one FTE to Seaport -1.0 2010 Proposed New FTEs 4.5 HR&D Technology Manager 1.0 HRMS Compensation & Benefits Specialist 1.0 Workplace Responsibility Program Manager 1.0 Admin Assistant 0.5 Admin Staff Assistant 1.0 Proposed FTEs for 2010 450.2 12 Risks Economic conditions remain uncertain SAO Performance Audit Insurance premiums on renewal Unexpected litigation or claims Unanticipated event & TSA mandates 13 Corporate 5 Year Capital Budget (In Thousands) Est. Act. 2010-2014 2009 2010 2011 2012 2013 2014 5 Yr Total Information & Communication Tech. ICT Infrastructure & Telephony 5,786 5,880 2,500 2,500 - 10,880 Applications 8,603 8,665 5,725 3,725 - 18,115 IT Future Renewal Replacement - - 4,500 4,500 10,500 10,650 30,150 Sub-total 14,389 14,545 12,725 10,725 10,500 10,650 59,145 Small Capital Acquisition 982 100 100 100 100 100 500 TOTAL CORPORATE CIP 15,371 14,645 12,825 10,825 10,600 10,750 59,645 14 Corporate Capital Projects 2010 Project Name (In Thousands) Spending INFRASTRUCTURE - Small Cap 2,500 SERVICES TECH - Small Cap 2,000 ID Badge Software Upgrade 2,000 Business Continuity 1,780 Network Switch Replacements 1,000 Net RMS Replacement 1,000 Maximo 690 PeopleSoft Financials Upgrade 500 Port Contractor Roster 450 Enterprise Project Delivery System 400 Windows 7 OS Upgrade 400 P2000 Access Control Upgrade 350 Propworks Upgrade 325 Network Firewalls 300 Records and Document Mgmt 300 Cyber Security Info & Event Manager 300 Enterprise GIS-Small Cap 250 Small Capital Acquistions 100 TOTAL 14,645 15 Remaining Schedule October Draft Plan of Finance & Tax Levy (10/13) Preliminary Budget Document to the Commission (10/20) Release of Preliminary Budget & Draft Plan of Finance (10/29) November First reading of budget resolution (11/10) Second reading of budget resolution (11/24) December Statutory budget filed (12/1) 16 Port of Seattle 2010 Budget Workshop October 8, 2009
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