Budget Guiding Principles
Maintain solvency
Prioritize spending on investments with long-term, sustainable community and
economic benefits
Commitment to continuity of POS workforce
Focus investments in achieving excellence in aviation and maritime gateways
Prioritize programs and projects that generate revenue
Continue to assess short- and long-term effects of COVID-19 on Port industries
and markets
Maintain a long-term strategic view of capital improvements
Continued commitment to equity and diversity
Continued commitment to environment and sustainability, prioritizing spending
on mitigating direct Port impacts for 2020-21
1

2020 Operating Budget Reductions - by Division
Total        Non-
Payroll   Payroll to    Payroll     Payroll   Total O&M
(in thousands)      (Operating)   Capital   Reduction*  Reduction  Reduction**
(a)              (b)          (c)=(a)+(b)          (d)          (e)=(a)+(d)
Aviation                  2,109         795         2,904       18,271        20,380
Maritime                  126        -              126        1,808         1,934
EDD               -       -          -       3,106      3,106
Central Services           1,697        2,006         3,703        8,313        10,010
TOTAL            3,932     2,801      6,733     31,498     35,430

Note:
* Total Payroll Reduction includes another $7.4M net reduction for the 3% vacancy factor.
** Total O&M Reduction includes $741K allocated to the NWSA.

2

2020 Operating Budget Reductions  by Account
2020       2020
2019  Approved    Revised   Cost Reductions
Expenses by Category (in $000)           Actual     Budget     Budget     $        %
Salaries & Benefits                         138,000     152,684     148,694      3,990     2.6%
Wage & Benefits                        121,000    135,368    135,426       (58)    0.0%
Payroll to Capital Projects                    29,570       37,410       34,609      2,801     7.5%
Outside Services                          108,000     126,827     112,155     14,673    11.6%
Utilities                                           25,855       29,066       28,521         545      1.9%
Equipment Expense                       11,343       9,158      10,066      (908)    -9.9%
Supplies & Stock                          11,909       9,989       7,963      2,026    20.3%
Travel & Other Employee Expense          5,462       7,029       3,752     3,277   46.6%
Third Party Mgmt Op Exp                 13,329      12,699       8,494     4,205   33.1%
B&O Taxes                          4,856      5,007      3,949     1,058   21.1%
Other Expenses                            38,581      24,199      18,316      5,883    24.3%
Charges to Capital Projects               (56,000)     (70,296)     (68,233)    (2,063)     2.9%
TOTAL                    451,000   479,142   443,712   35,430   7.4%

3

2020 CIP Deferrals Summary

2020 CIP
(in thousands)              Deferrals
Aviation                       23,902
Maritime & EDD             12,300
Central Services                  4,422
TOTAL               40,624


4

Workforce Development Programs Summary
2020
Cost             2020
2019    2019    2020 Re ductio Revised     YTD
Workforce Development Program (in $000)                   Budge t   Actual  Budge t         n  Budge t  Spe nding
Maritime Secondary Education                                          -         -      100          -       100          -
Youth Maritime Initiative/Transportation/Bus Charters                    252       102       152         50       102          50
Engagement and Strategic Plan                                          -         -      200        100       100          -
Airport Career Pathways Implementation                              251       43      101          -       101         10
Career Advancement Center (formerly Fair Work Center)                 -         -      300          -       300          -
Construction Trades - Regional Partnership Services, Pre-App            710       548       650          -       650        114
Airport Employment Center/Employment Cont. Pool                    910      819      979          -       979        252
Workforce Dev. General Services/Other expenses                       88       17       97         66        31          -
Salary & Benefits, & Worker's Compensation                          298      205      540          -       540        146
K-12 Career Connected Learning                                    401       13        -          -         -         31
Events/Other                                                        10       25         -          -         -          5
TOTAL                                 2,920  1,771  3,119    216   2,903    608


5

Diversity in Contracting Programs Summary
2019     2019     2020  2020 Cost   Revised 2020 YTD
Diversity in Contracting Programs (in $000)         Budget    Actual   Budget  Reduction    Budget  Spending
Construction Incubator/Contracting Resource Center         60        29        50          10         40           -
Mentor Protg                                            -         -        80         80          -           -
Marketing/Communications/Design Services                5         -        10         10          -           -
Port Gen                                               75        49        50         40        10          -
Tabor 100 (Hub/A&E)                                 -         -         -       (30)        30          -
Linda Kennedy (CPS Technical Writing)                     -         -         -        (13)        13          4
WMBE Best Practice & Implementation                   50         -         -          -         -          -
Miscellaneous expenses                                  18         -         6           -         6         11
TOTAL                            208     78    196      97    100      16


6

2020 Enhancements Recommendation
Uncertainty and Affordability:
Overriding principle is caution given continued uncertainty around our key lines of business.
Continue with 2020 capital improvements but revisit longer-term projects as part of 2021 budget.
Continue existing programs and target short-term additional investments in tourism and workforce development
based on priority needs, financial capability
Continue discussion on longer-range stimulus efforts.
Two-phase approach:
Phase #1:
$1.5 million for Workforce Development
$1.5 million for Tourism
Funded through the Port tax levy.
If possible, utilize existing contracts to accelerate implementation
Phase #2: Re-evaluate expenditures in fall budget process and consider revisions based on outcome with workforce
and tourism programs

Community Programs Enhancements
2020 Cost   2020 Revised   2020 YTD  Enhanced
Program ($000)                         2020 Budget  Re duction      Budge t      Spe nding     2020      Total
Airport Community Ecology (ACE) Fund              522             -            522           47          -        522
Duwamish Valley Community Equity Program          292             -            292            9          -        292
South King County (SKC) Fund                    1,500             -          1,500             -          -       1,500
EDD Partnership Grants                               960             -            960          (27)          -         960
Tourism Program                                 1,536          194          1,342          256     1,500       2,842
Workforce Development                          3,119          216         2,903          608     1,500      4,403
TOTAL                         7,930       410      7,520       892   3,000    10,520



8