Port of Seattle 
Century Agenda Roundtable: 
Funding our Strategic Goals 
November 8, 2011 



1


25 Year Strategic Goals 
Add 100,000 new jobs to the existing 200,000 jobs in the region that are
attributable to the economic activity created by the Port of Seattle. 
Moving Cargo Goals: 
• Position the Puget Sound region as a premier international logistics hub. 
• Grow seaport annual container volume in a sustainable manner to more than
3.5 million TEUs. 
• Triple air cargo volume to 750,000 metric tons. 
• Triple the value of our export cargo to over $50 billion. 
Moving People Goals: 
• Fully meet the region’s air transportation needs for the next 25 years 
• Make Seattle-Tacoma International Airport the west coast “Gateway of
Choice” for international travel 
• Double the number of international flights and destinations 
• Double the economic value of cruise traffic to Washington State 
• Be a catalyst for establishing this region as a premiere destination for tourists
from Asia, Europe, and other targeted international areas                      2


25 Year Strategic Goals 
Environmental Goals: 
Be the cleanest, greenest, most energy efficient port in the United States. 
• Reduce air pollutant emissions by 50% from 2005 levels. 
• Lead our industry's greenhouse gas (GHG) reduction strategies by
reducing carbon emissions from all Port operations by 50% from 2005
levels and reducing aircraft-related GHG emissions at Sea-Tac by 25%. 
• Meet future growth in energy usage through conservation and renewable
sources.
• Restore, create, and enhance 40 additional acres of habitat in the
Green/Duwamish watershed and Elliott Bay. 
• Prevent sprawl in less developed areas of Puget Sound by anchoring our
region's urban industrial land use. 
• Ensure all stormwater leaving Port operated facilities will meet or exceed
agency requirements and create partnerships that lead our industry in
stormwater quality improvements. 
3


25 Year Strategic Goals 
Community Values Goals: 
• Increase the proportion of funds spent by the Port with qualified
small businesses firms on construction, goods and services to 25%
of the eligible dollars spent. 
• Increase workforce training, job and business opportunities for
local communities in trade, travel and logistics. 
• Reflect the worker diversity of our region in the Port workforce at
all levels. 
• Benefit the neighborhoods surrounding our facilities through
community partnerships, economic opportunities and
environmental initiatives. 
4


Century Agenda 2008
Guiding Principles 
• The Port should be primarily funded through the self-sustaining enterprises
that are at the core of its mission. Revenues from the Port’s tax levy should
be used for activities that are not fully self-sustaining and cannot be funded
in another manner. These activities should directly support the Port’s core
mission, provide for critical infrastructure investments, or provide
environmental mitigation that cannot be funded through its enterprises. 
• The Port should demonstrate to the public that it has managed its financial
resources as a disciplined steward of the public interest, guided by priorities
set forth in its core mission statement and strategic plan. 
• The Port should foster a culture of partnership and collaboration in pursuing
public and private funding partnerships for investments that apply to the
Port’s core mission, that reap shared benefits to all its partners, and that no
single entity can achieve independently. 
5


Port Revenues By Source 
Port Resources - 2010 
Total $418 million 
($ million) 
Airport net income,
Tax Levy, $74 , 18%                              $161 , 38% 
Seaport Grants,
$11 , 3% 
Seaport net income,
$58 , 14% 
Customer Facility
Charges, $23 , 5%
Airport Grants,                       Passenger Facility
$32 , 8%                          Charges, $60 , 14%
6


Capital Funding Sources 2012-2016 
$1.5 billion 
Future Revenue                         ($ million) 
bond proceeds,
$746 , 50% 
Net Income &
Operating Funds,
$386 , 26% 


Tax levy, $64 , 4%

Grants, $74 , 5%

Passenger Facility
Charge, $53 , 3% 

Customer Facility
Charge $57 , 4%
Existing revenue
bond proceeds,
$114 , 8%                                                 7


Potential Additional Sources 
of Investment Capital 
Other potential available sources include: 
• Sale of non-strategic assets 
• Public/private partnerships 
• Industrial Development District Levy (IDD) 
• Local Improvement District funding 
• Local Infrastructure Financing Tool (LIFT) 

8


Recent Major Investments 
Port needs to retain sound financial management policies, but also
may need capital that’s available for future investment for growth.
Examples of major prior investments include: 
• Container terminal expansion and redevelopment ($800+ million) 
• 3rd Runway ($1.1 Billion) 
• Cruise terminal(s) ($100+ million) 
• Fishing docks ($100+ million) 

9


Financial Management Policies 
Port’s policies for prudent cash reserves and leverage ratios support
flexibility, strong credit ratings and capital market access 
• Operating cash reserves - maintain a minimum of: 
o 6 months operating and maintenance (O&M) expenses in the general fund 
o 10 months O&M expenses in the airport development fund 
• Maximum 75% of tax levy used to pay General Obligation
bond debt service 
• Net income provides revenue bond debt service coverage of: 
o 1.5x debt service for Seaport debt 
o 1.25x debt service for Airport debt 

10


Airport Funding 
• The Airport is comprised of two major business segments: 
o Aeronautical – airfield and terminal facilities used by airlines under lease
or operating agreement; operates on full cost recovery basis 
o Non-aeronautical – other business operations including parking,
concessions, rental car, etc. managed by airport 
• All Airport revenues are restricted for airport use, some is further restricted 
o Airport operating income 
o Federal grants – may fund up to 80% of eligible costs for noise mitigation,
safety, security, capacity enhancement 
o Passenger Facility Charges (PFCs) – passenger fee collected by airlines;
use is similar to federal grants 
o Customer Facility Charges (CFCs) – fee on rental car customers; restricted
for construction and operation of rental car facility 
11


Seaport & Real Estate Funding 
Seaport: 
• Income generated principally through: 
o long-term container leases, cruise operations 
o industrial property leases 
o some federal grants for security initiatives 
• Previous investments funded partly by tax levy and operating revenues 
Real Estate: 
• Income generated through: 
o Rents on commercial and industrial properties 
o Slip leases at fishing and recreational marinas 
• Operates at a loss primarily due to Fishermen’s Terminal 

12


Tax Levy Funding and Uses 
Funding source: levy on King County property owners 
• Available for “general Port purposes;” amount and use governed by Commission
annual decision; annual collection limited by statute 
• Funds may be leveraged to finance General Obligation (G.O.) Bonds 
Funding uses: 
• Real Estate operations and capital investments 
• Existing G.O. bond debt service, including previous Seaport investments, that
funded major container terminal expansion and renovation 
• Environmental remediation costs for “legacy” uses 
• Port share of regional transportation initiatives 
o  Freight Mobility investments 
o  Eastside rail corridor 
o  South Park bridge 
o  SR99 tunnel 
• Highline School noise mitigation/construction that is ineligible for Airport funding 
• Port Jobs – workforce initiatives                                             13


Statutory levy limits vs. 
Commission set annual levy amount 
• Annual levy well below statutory maximum 
• Current Commission guidance is to maintain flat dollar amount for planning purposes 

Tax Levy
Levy Amount vs. Estimated Maximum
Actual 2006-2011, Preliminary 2012, Projections 2013-2016
100.0
95.7
94.2
95.0                                                                                                                        92.7
91.3
90.1
88.7
90.0                                                                87.2
85.4
85.0                                    82.6
80.4
$ million   80.0        78.1
75.9          75.9
73.5          73.5          73.5          73.5          73.5          73.5          73.5
75.0
68.8
70.0
65.0        62 .8
60.0
2006         2007         2008         2009         2010         2011         2012         2013         2014         2015         2016
Maximum levy      Tax levy

14


Key Questions 

• How do we use net income from our business lines to reinvest in
strategic initiatives? 
• What is the best long term funding strategy for supporting the
Port's mission? 
• What guidance would you give the Port on future levy policy? 
• How should we seek to employ Federal/State funding assistance? 
• What role might public/private partnerships play in financing
Port needs? 
Continued onto next page 
15


Key Questions 
Continued from previous page 
• How much should the Port bow to market pressures to make
financially attractive deals to attract tenants and business
partners? 
• What should be the Port's general attitude toward risk (e.g. RCF
contract suspension, constructing facilities in the absence of
guaranteed tenants)? 
• What is a defensible relationship between public cost and job
creation/retention?
• What margin of returns should we demand of our various lines of
business? 
16

               Century Agenda: 
Proposed 2011 Calendar 



17 
6/14/11