6d Supp

ITEM NO.: _    6d_______
DATE OF MEETING:    11/23/2010

Port of Seattle
2011 Preliminary Budget
Second Reading/Public Hearing
November 23, 2010

1

Overview
2011 Budget Process
Operating Budget
Comprehensive Budget
Capital Budget
Tax Levy
Public Hearing
2

2011 Budget Process
Jun. 8     Budget Process Briefing
Aug. 17    Budget Assumptions Briefing
Aug. 17    Business Plan and Capital Plan Briefing
Sept. 28   Capital Budget Briefing
Oct. 5      Preliminary Operating Budget Briefing
Oct. 12    Preliminary Tax Levy Commission Discussion
Oct. 26    Draft Plan of Finance & Tax Levy Discussion
Nov. 2     Tax Levy Discussion and Preliminary Budget Update
Nov. 9     First Reading & Public Hearing, Preliminary Budget
Nov. 23    Final Reading & Public Hearing, Preliminary Budget
Dec. 2     Statutory Budget Filed with King County and Assessor
Dec. 15    Release Final Budget and Draft Plan of Finance
3

2011 Preliminary Budget Summary
2009      2010      2011
($ in 000s)                                   Actual     Budget      Budget  Change $Change %
Aeronautical Revenues              182,534    210,367    217,200     6,833     3.2%
Revenues w/o Aero               266,901   266,417   283,437    17,020     6.4%
Total Operating Revenues           449,435    476,784    500,637    23,853     5.0%
Total Operating Expenses            245,767    262,829    285,844    23,016     8.8%
Net Operating Income              203,668    213,955    214,792      837     0.4%
NOI w/o Capital Policy Change *    203,668    213,955    218,032     4,077     1.9%
* Without the capital policy change, O&M costs are estimated to be $5M lower and aeronautical revenues are expected to be
$1.8M lower. Net NOI impact is estimated to be $3.2M.

4

Comprehensive Budget Summary
Revenues            ($ in 000s)                2010 Budget   2011 Budget   Change $Changes %
Operating Revenues                                       476,784        500,636      23,852              5.0%
Tax Levy                                              73,500         73,500       - 0.0%
PFCs                                         58,535       60,379      1,844          3.2%
CFCs                                      22,475       22,237      (238)    -1.1%
Non-Capital Contributions                                     2,209           8,494        6,286           284.6%
Capital Contributions                                           50,152           32,106      (18,046)    -36.0%
Interest Income                                                24,489          13,654      (10,835)    -44.2%
Total                                                        708,144         711,006        2,863              0.4%
Expenses
O&M Expense                                  262,829       285,844     23,015           8.8%
Depreciation                                               158,575         160,491        1,916             1.2%
Revenue Bond Interest Expense                             150,070        148,206       (1,864)     -1.2%
GO Bond Interest Expense                                 14,432         13,781         (651)     -4.5%
PFC Bond Interest Expense                                 10,497         10,191         (306)     -2.9%
Non-Op Environmental Expense                            20,000          6,200     (13,800)    -69.0%
Public Expense                                              39,464          17,205      (22,259)    -56.4%
Misc. Non-Op Rev/Expense                               2,217          2,521         304         13.7%
Total                                                        658,084         644,439      (13,645)      -2.1%
Change In Net Assets                                       50,060          66,568      16,508             33.0%

5

2011 Capital Budget Summary
($ in millions)                     Aviation      Seaport    Real Estate  Corporate (1)      Total
Committed                      $231.4      $29.5       $15.4       $12.1     $288.3
Business Plan Prospective          $71.8      $18.6        $5.0        $1.4       $96.8
Total                             $303.2       $48.1        $20.4        $13.5      $385.1
(1) Includes $0.5 million for CDD



6

5-Year Capital Plan by Division
The 5-year capital plan from 2011-2015 is $1.49 billion
Aviation Committed Projects                $487.5M
Seaport Committed Projects               $ 88.2M
Real Estate Committed Projects            $ 31.9M
Corporate & CDD Committed Projects      $ 24.2M
Total Committed Projects                $631.8M
Aviation Business Plan Prospective*        $564.8M
Seaport Business Plan Prospective*        $214.4M
Real Estate Business Plan Prospective*     $ 43.9M
Corp & CDD Business Plan Prospective*    $ 37.9M
Total Business Plan Prospective*         $861.0M
*The preliminary numbers may change pending outcome of tax Levy discussions


7

Tax Levy Sources and Uses
$'000                                                       2011
LEVY USES
G.O. DS - existing                                              40,438        2011 tax levy is
$73.5 million
Other uses
Roads and Transportation Projects                            9,100       2011 maximum levy
School Construction & Noise Insulation                         650
Sea & RE Environmental expenditures - preliminary          11,559            is estimated to be
PortJobs                                                      46           $88.3 million
Subtotal Other                                            21,355
The levy fund
Real Estate Support
balance excludes
RE Capital Total                                                20,357
RE Operating Subsidy                                       5,372           $13 million in the
Subtotal RE Support                                        25,729
Transportation &
Total Uses                                                 87,521            Infrastructure Fund
LEVY SOURCES
Beginning Tax Levy Fund Balance                         26,634
Seaport reimbursement for environmental exp.             500
Annual levy                                            73,500
Total uses                                                  (87,521)
0.0%
Projected Ending Tax Levy Balance                           13,113
8

Port of Seattle
2011 Preliminary Budget
Second Reading/Public Hearing
November 23, 2010

9

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