11c. Presentation 2020 Financial Performance Briefing
Item No. 11c_supp Meeting Date: March 9, 2021 Port of Seattle 2020 Financial Performance Report March 9, 2021 2020 Key Financial Highlights The COVID-19 pandemic caused major disruption across Port business lines. Significantly reduced airline passengers, loss of the Alaskan cruise season, a sharp reduction in conference activity and reduced parking volumes led to a substantial loss of budgeted revenues. The Port responded with across-the-board cost reductions including a hiring freeze, reduced discretionary spending, deferred capital spending and cuts in contracted services to mitigate the loss of revenues. In June, the Commission approved a revised 2020 budget and included $3 million of targeted funding for regional economic recovery. SEA was awarded $192 million in CARES Act funding, $147 million of which was applied in 2020. 2020 operating expenses were offset by a $17.2 million state pension credit. 2 Aviation Division 2020 Financial Performance Report Drop in Passengers Defined 2020 Financial Challenge Total Passengers by Month for 2020 vs 2019 Passengers (millions) 2019 Actual 51.8 2020 Budget 53.3 2020 Actual 20.1 61% compared to 2019 4 Keys to Financial Results: CARES grant, Wise Spending Financial Summary Business Highlights Variance Activity: Revised Approved Actual vs Actual Budget Budget Revised Operations: -34.3% Figures in $000s YE 2020 YE 2020 YE 2020 Budget Cargo metric tons: +0.2% Revenues Aeronautical 297,909 401,342 401,342 (103,433) Achieved all revised financial goals: Non-Aeronautical 116,473 135,074 283,167 (18,601) Total 414,382 536,416 684,510 (122,034) Debt service coverage > 1.25x O&M expense 329,680 348,826 377,306 19,146 O&M spending < revised budget NOI 84,702 187,589 307,203 (102,887) Non-aero revenues > $113 .6M CARES Grant 147,148 - - 147,148 NOI (After CARES Grant) 231,850 187,589 307,203 44,261 ADF capital spending < $55M Key Measures Used CARES Act grant to: Non-Aero NOI (in $000s) 6,671 21,443 154,660 (14,772) Minimize2020 airline settlement (expect CPE ($) 26.50 13.93 13.93 (12.57) surplus ~$1M) Debt Service Coverage 1.40 1.80 1.80 (0.40) Other Information Restored cash balance (ADF) to within $20M ADF Balance 295M 314.4M 314.4M (24.2M) of target Capital Spending (in $000s) 504,073 489,182 513,131 (14,891) Retained $45M of $192M CARES for 2021 5 Financial Actions for COVID-19 Response in 2020 Accelerated Leadership meetings throughout to Claimed $73M of CARES 2019 Airlines Provided Non-Aero actively address challenging for O&M and Debt Tenant Relief Service Settlement Deferred environment and execute solutions $31.2M Surplus Aero Billings $15.5M Provided 2nd Round $37.5M ADR Tenant Relief $5M Avoided hikes in Airlines Rates/Fees for Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 Settlement Claimed $74M CARES Reduced 2020 reimbursement for Debt Budget, O&M Service Deferred 2008 VRBD Maintain Debt Service by $28M, $9.2M principal Coverage at 1.39 Capital by Performed Multiple Forecast Scenarios based on payments, Liquidate PFC $24M updated enplanement assumptions $10M reserves 6 Financial Performance Snapshot Down 24% Down 43% (after CARES) Without CARES NOI Down 72% Note: Revenues above includes Operating and Non-Operating (CFC and PFC collections) 2020 Total Budgeted CFC collections = $37.7M less 13.8M Operating CFC = $23.9M Non-Ops CFC Budgeted Collections 7 Total Operating Expenses Summary $47M or 12% favorable vs. Original Budget (or $19.1M or 5.5% favorable to Revised Budget) Major Favorable Variance Drivers to Original Budget: Reduced O&M Expenses by $28M in April 2020 to get to the Revised Budget Received Pension Credit of $14M (6.9M hit Direct Airport, $7.1M from Corporate Allocations) Underspend in Environmental Remediation Liability (ERL) $3.2M 8 Aeronautical Revenue Requirement Original Budget $401M 29% Actuals $298M Applied $101M of CARES grant to offset revenue requirements (aka costs to recover from Airlines) 9 Aero Rate Base Revenue Requirements How was Received $94M in CARES CARES $71.7M to lower applied? Debt Service Received CARES $22.5M to lower O&M Preliminary Airline Settlement Billings $269.0M YE Requirement $267.8M Surplus $1.2M * YE Requirement for Settlement excludes Non- Settlement items (Other Movement Area, * Airfield Commercial is excluded from Aero Rate Base RON/Hardstand, Other Terminal, and Airfield Commercial Revenues. 10 Non-Aeronautical Revenues Original Budget $283M 59% Actuals $116M Passenger Volume down 61% O&D Passenger Volume down 65% Most Non-Aero activity closely aligned with % decline in PAX volume 11 Non-Aeronautical NOI 61% (after CARES grant) Without CARES, Non-Aero NOI would have been down 96% 12 Tenant Relief Rent Payment Deferral Status Aviation Tenant Relief Summary (in $000's) Status as of 2/28/2021 # Participants Total Relief Outstanding Granted (as Billed) Balance Owed as of as of 2/28/2021 2/28/2021 Aeronautical Tenant Relief 2nd Non-Aero Tenant Airline - rate base payment deferrals 30 37,584 0 Relief program for ADR Combined Aero/Non-Aero Tenant Relief Concessionaires only is Airline Service Providers 9 2,308 1,843 still in progress. Non-Aeronautical Tenant Relief Airport Dining & Retail 36 8,874 4,875 "Total Relief Granted" will Rental Cars 9 4,376 1,080 increase by ~$3M as Jan- Ground Transportation - trip fees (taxi only) 124 91 77 March ADR rents are Ground Transportation - trip fees (all other) 120 196 7 Ground Transportation - space rent 3 12 9 billed. GT - STILA only 1 52 51 In-flight Kitchens 3 1,379 532 Doug Fox 1 294 250 Employee Parking 3 2 1 Subtotal - Non-Aero Tenant Relief 300 15,276 6,882 Total Aviation Tenant Relief 339 55,168 8,725 13 Aviation FTE & Position Vacancy YE Status Total FTEs in 2020 Approved Budget 1,250.53 Vacant FTEs - YE status by AV dept 2020 mid-year FTE additions - AV division 2.00 AVM 6.00 Intern FTEs transferred to Central Services/HR (7.75) Landside 9.50 FTE positions FROZEN as of year-end 2020 (120.34) Security 4.00 Adjusted Total FTEs at year-end 2020 1,124.44 Terminal Ops 4.00 ADD BACK in 2021 - Unfreeze existing vacant FTEs for hiring 18.00 Fire Dept 3.00 ADD NEW in 2021 - New FTEs - strategic functions 2.00 AVPMG 2.00 Total FTEs in 2021 Approved Budget 1,144.44 AVFB 1.00 Vacant - existing FTEs 29.50 Filled FTEs at 2020 year-end 1,097.44 Unfrozen/New FTEs 17.50 Vacant FTEs at 2020 year-end 47.00 Total Vacant @ 12/31/2020 47.00 Total FTEs as of YE 2020 / in 2021 Approved Budget 1,144.44 Confirmed: All 102 FROZEN FTEs are currently vacant (not included in tables above) 14 Strategic use of CARES grant to exceed debt service coverage minimum in $000's 2020 Budget 2020 Actual Variance 2020 debt payment of Revenues $287M, $10M less than Aero 401,340 297,909 (103,431) Non-aero 283,167 116,473 (166,694) budget includes deferral of Total Revenues 684,507 414,382 (270,125) 2008 variable rate bond O&M 377,306 329,680 47,626 principal payment and lower NOI 307,201 84,702 (222,499) CARES grant non-op revenue 43,257 43,257 interest rate. Other net non-operating 1,027 5,604 4,577 2020 includes liquidated PFC Available for debt service 308,228 133,562 (174,666) Debt Service debt service reserve of $10M Gross debt service (net of cap i) 262,479 249,555 12,924 which provided capacity for CFC offset (23,657) (13,601) (10,056) PFC offset (67,348) (36,390) (30,958) PFC offset. CARES grant debt service offset - (103,891) 103,891 Net Debt Service 171,474 95,673 (75,802) Debt Service Coverage 1.80 1.40 (0.40) 15 Federal COVID Relief: CARES & CRRSAA Use $160.0 CRRSAA - Concessions $147.1 CRRSAA - Airport $140.0 $20.8 O&M Non-aero $120.0 $22.5 O&M Aero $100.0 DS Non-aero $ in Millions $87.7 $32.1 DS Aero $80.0 $5.5 $60.0 $37.3 $37.9 $3.5 $40.0 $71.8 $5.0 $20.0 $45.0 $29.4 $- 2020 Actual 2021 Budget 2021 Forecast 16 2020 Capital Spending 17 Capital Spending by Funding Sources $504M $491M 500,000 12,874 9,364 2020 capital spending 450,000 3,472 funded by existing bond of 400,000 $477M 207,589 350,000 CFC ADF capital spending 300,000 Tax Levy $10M which is net $43M 250,000 477,257 Future Bonds 67,717 reimbursement from Grants 200,000 Existing Bonds bonds 150,000 ADF 2021 Annual Approved 179,229 100,000 Budget (APV) requires new 50,000 bond proceeds - 10,237 22,810 2020 Actual 2021 APV 18 Airport Development Fund Balance 2020 ending balance at $295M, $19M below target. March through July declined due to airline and tenant deferrals. $44M of ADF reimbursement in June. 19 2021 Capital Spending 2021 POF 2021 APV Change Six Major Projects NS NSAT Renov NSTS Lobbies 93,014 96,408 3,394 International Arrivals Fac-IAF 57,679 86,500 28,821 Checked Bag Recap/Optimization 95,000 86,100 (8,900) 2021-25 AFLD Pvmnt&Spprt Infr 40,500 29,560 (10,940) Highline School Insulation 6,138 21,948 15,810 SSAT Infrastructure HVAC 10,320 11,505 1,185 Subtotal - Six Major Projects 302,651 332,020 29,369 Other Capital Projects 240,373 196,134 (44,239) SAMP Preliminary Planning / Design 5,903 5,025 (878) CIP Cashflow Adj Reserve (84,693) (41,978) 42,715 Total Capital Budget 464,234 491,202 26,968 20 Non-Aviation Divisions 2020 Financial Performance Report Non-Aviation Performance Summary Fav (UnFav) Revised Budget 2020 2020 2020 Fcst vs. Revised Revised Approved Budget Variance Revenue below budget due to COVID $ in 000's Actual B udg e t B udg e t $ % impacts on Cruise and Conference Revenues Event Centers. Maritime 42,111 42,581 62,938 (470) -1% NWSA Joint Venture distributable Economic Development Division 9,470 15,658 19,110 (6,188) -40% income below due to $5M reserve Joint Venture* 37,563 40,322 40,322 (2,760) -7% related to lease cancellation pmt. Total Revenue 89,144 98,561 122,370 (9,418) -10% Lower revenue volumes offset by Expenses expense savings. Maritime 53,500 52,191 54,396 (1,309) -3% Economic Development Division 20,611 27,222 29,368 6,611 24% Joint Venture 1,063 836 837 (228) -27% Expenses favorable due to variable Total Expense 75,175 80,250 84,601 5,075 6% costs NOI Before Stormwater Utility 13,969 18,312 37,769 (4,343) -24% Stormwater Utility Revenues 6,374 6,270 6,270 104 2% Approved Budget Stormwater Utility Expenses 4,742 5,394 5,513 652 12% No Cruise sailings driving down revenue Stormwater Utility NOI 1,632 876 757 756 86% NOI excluding Stormwater down Total Non-Aviation Business NOI 15,601 19,188 38,526 (3,587) -19% $23.8M *Note Based on 50% of Distributable Income from NWSA Tightened Expenses offset Revenue Reductions 22 Maritime Division 2020 Financial Performance Report Maritime Division Financial Summary Business Highlights No return to the Cruise Business in 2020. Revised Approved Variance Figure in $000s Actual Budget Budget to Revised Fishing, Commercial and Recreational Marinas along with Revenues Leasing revenue seeing smaller impact. Fishing, Commercial, & Recreational Marinas 23,067 22,743 22,747 323 Demand for corn and soybeans driving higher Grain Cruise 3,824 5,909 26,261 (2,085) revenue. Maritime Portfolio Mgmt. 10,074 10,428 10,428 (355) Grain / Other 5,147 3,501 3,501 1,646 Total 42,111 42,581 62,938 (470) Favorable pension credit of $2M offset by $4M in capital to O&M Expense expense and $3.3M in lease payment reserves. Direct 24,039 22,035 22,637 (2,005) Support Services 15,828 15,051 16,110 (777) Central Services and Other 13,633 15,106 15,650 1,473 T117 restoration advancing as planned & Shilshole Bay Total 53,500 52,191 54,396 (1,309) Marina service buildings to be completed. NOI (11,389) (9,610) 8,541 (1,779) Recovered over $30M in Environmental Remediation Capital Spending 19,698 19,712 14 through PRPs, insurance, and grants (Non-Operating Income). Ma rinas, Leasing Portfolio, and Grain ho lding, Cruise driving variance 24 2020 Maritime Achievements Recreational Boating Completed customer service facilities at SBM. Established Customer Moorage Deferral program for financially distressed customers. Updated COVID processes with Q4 occupancy exceeding pre-pandemic levels. Elliott Bay Fishing and Commercial Operations Design work underway for P91 NW Fender. Ship Canal Fishing & Operations Summer Recreational Boating exceeded expectations. Due to COVID-19 many key events at Fishermen's Terminal were cancelled including the 92nd annual Blessing of the Fleet and the Fishermen's Fall Festival. Cruise The Cruise team is working with cruise lines, CLIA, AAPA, CDC, and other stakeholders to plan for and implement new health protocols at T91 and P66, as well as developing a strategy and community communication plan in preparation of recommencing cruise operations for the 2021 cruise season. Moving programs forward, ada pting to COVID-19 25 Maritime 2020 Financial Highlights Net Operating Income is $1.8M unfavorable to revised budget and $22M below 2019 Revenue is $470K below revised budget and $17.2M below 2019, primarily from Cruise cancellation. Expenses $1.3M unfavorable to revised budget driven by capital projects getting expensed, lease payment reserves, offset by favorable pension credit. Expenses up $4.9M Y/Y including the addition of $1.9M in T46 lease payments to NWSA. Capital spending was $19.7M (100% of budget). Stormwater Utility Fav (UnFav) Incr (Decr) revenue on budget 2018 2019 2020 2020 2020 Actual vs. Revised Change from 2019 Revised Appr ove d Budget Variance and expenses $ in 000's Actual Actual Actual B udg e t B udg e t $ % $ % Total Revenues 57,575 59,289 42,111 42,581 62,938 (470) -1% (17,178) -29% tracking favorable Total Operating Expenses 43,252 48,644 53,500 52,191 54,396 (1,309) -2% 4,856 10% to budget. Net Operating Income 14,323 10,644 (11,389) (9,610) 8,541 (1,779) -21% (22,034) -207% Depreciation 18,022 17,627 17,624 17,249 17,244 (376) -2% (3) 0% Net Income (3,699) (6,982) (29,013) (26,859) (8,703) (2,154) -25% (22,031) 316% Expenses above Revis ed Budget due to Capital Projects gett ing expensed and lease payment reserves 26 Northwest Seaport Alliance Summary NWSA TEU Data NWSA Operating Income Fav (UnFav) Incr (Decr) Full-year 2020, there was a total of 65 void sailings due to a combination Before GASB 87 Adjustment 2019 2020 Budget Variance Change from 2019 of the lingering trade dispute with China and the pandemic. Tariffs and $ in 000's Actual Actual B udg e t $ % $ % COVID-19 show the risk of single-country sourcing. Many shippers are Operating Revenue 195,022 184,326 197,475 (13,149) -7% (10,696) -5% looking to diversify manufacturing and sourcing activities to SE Asia or Operating Expense 100,504 107,605 115,231 7,626 7% 7,101 7% other countries, which may have longer term implications for the Operating Income 94,518 76,721 82,244 (5,523) -7% (17,797) -19% gateway as these origins may be better served by east coast ports due to shorter transits. NWSA total international TEUs are down 13.8% for the Cargo TEUs 3,775,379 3,320,379 (455,000) -12% Cargo Volume (Metric Tons) 29,982,608 26,764,655 (3,217,953) -11% year while total TEUs are down 12.1%. Exports (YTD Nov 2020 vs. YTD Nov 2019): Note: GASB 87 Accounting impact and Non-Operating Totals available on NWSA Site Japan, Korea, China, Taiwan and Indonesia were our top trading Revenue $13.1M below budget from lower cargo volumes. partners. Exports to Japan, Korea, China, Taiwan and Indonesia declined 12.6%, 19.7%, 3.8%, 25.8% and 2.5%, respectively. Expenses $7.6M favorable to budget. Operations costs were Exports are down 14.8% YTD Nov. below budget: Volume related variable expenses from lower volumes. Imports (YTD Nov 2020 vs. YTD Nov 2019): Reduced Infrastructure, Commercial, and Administrative China, Vietnam, Japan, Taiwan and Korea were our top trading costs through initiatives. partners. Offset by: Imports from China, Japan, Taiwan and Korea are down 15.0%, Timing of the crane T5 cranes. Cost was to be $6M in 2021. 28.6%, 6.2% and 15.6%, respectively. The new deal with SSA resulted in only $2.8M in expenses Imports from Vietnam are up 44.9%, 36,373 TEUs. which was applied in 2020. Lease Payment Reserve. Imports are down 10.1% YTD Nov. *Export and import data source PIERS, full international V olumes and operating expenses belo w budget 27 Joint Venture Fav (UnFav) Home Port Activities 2018 2019 2020 2020 2020 Actual vs. Revised Revised Approve d Budget Variance Revenues: $ in 000's Actual Actual Actual Budge t Budge t $ % Re ve nue Joint Venture below budget due to lower Joint Venture Revenue 55,992 47,979 38,782 41,935 41,935 (3,153) -8% volumes at NWSA Contra Joint Venture Revenue - - (1,913) (1,913) (1,913) (0) 0% Subtotal Distributable Revenue from NWSA 55,992 47,979 36,869 40,022 40,022 (3,153) -8% Other Service Revenue higher than budget due to tenant reimbursable Maintenance Other Service Revenue Tenant Reimbursements 1,630 3,006 443 301 301 142 47% work Port Revenue from NWSA Facilities - - 251 - - 251 NA Port Revenue from NWSA Facilities Total Revenues 57,622 50,986 37,563 40,322 40,322 (2,760) -7% temporary moorage on the northwest face Expe ns e s JV Direct 2,540 3,439 626 28 28 (598) -2116% of T46 Maintenance Expenses 102 1,012 500 707 707 207 29% Environmental & Sustainability 154 126 22 1 1 (21) -1482% Expenses Other Central Services 275 102 (52) 71 71 122 173% Maintenance lower than budget due to Seaport Project Management 52 20 (33) 29 29 62 212% - - - departmental reductions Total Expenses 3,123 4,699 1,063 836 837 (228) -27% JV Direct - SWU Fees at T46 (Not in NOI Before Depreciation 54,499 46,287 36,499 39,487 39,486 (2,987) -8% Legacy Depreciation for NWSA Facilities 17,028 16,298 15,203 15,227 15,227 24 0% Budget) NOI After Depreciation 37,472 29,989 21,297 24,260 24,259 (2,963) 12% 28 Stormwater Utility Expenses are under budget based on pandemic stay home order affecting maintenance team Moving improvements forward while working with customers 29 Stormwater Utility Accomplishments 100% compliance for all Port properties subject to stormwater permit while accommodating staffing complications due to COVID-19. Improved stormwater education and outreach of Port employees and tenants through standard practices, materials and trainings . Reviewed 130 stormwater treatment technologies from around the world. 30 Environmental Accomplishments Completed the Northwest Ports Clean Air Strategy continuing strong international partnership to address GHG and air quality. Completed the Quiet Sound program recommendation to reduce adverse effects of large vessels on Orcas. Received WPPA award. Broke ground on construction at Terminal 117, to create a 13-acre habitat restoration and public access site. First port to join the International Ocean Acidification Alliance. Implemented the new Sustainable Evaluation Framework to assess environmental features as part of capital project delivery (screened 204 projects). 31 Environmental Accomplishments Secured over $30 Million of outside revenue through insurance claims, settlements, grants, and rebates. Signed three new agreed orders to start contaminated site cleanup process at maritime properties. Two new solar arrays at SBM. Bringing the total Port solar production to over 120,000 kWh of renewable electricity. Disposed of 8 derelict vessels. Maintained Green Marine and Salmon Safe certifications. Formed an Environmental Justice internal working group. 32 Economic Development Division 2020 Financial Performance Report Economic Development Division Financial Summary Business Highlights COVID-19 Driven Revised Approve d Variance BHICC cancellations and reduced Bell Street Figure in $000s Actual Budge t Budge t to Revised Garage revenues driving $6.2M revenue Revenues 9,470 15,658 19,110 (6,188) variance. O&M Expense EDD & Maritime 9,334 12,207 14,805 2,872 Expenses $6.6M below budget from port-wide Maintenance 3,042 3,476 3,819 434 cost reductions & pension adjustment, Tourism Diversity in Contracting 103 151 197 48 program spend timing, and variable expenses Tourism 954 2,842 1,536 1,888 EDD Grants 778 1,110 1,110 332 tied to conference centers. Central Services and Other 6,401 7,437 7,901 1,036 Total 20,611 27,222 29,368 6,611 NOI (11,141) (11,564) (10,258) 423 Bell Harbor Conference Center Modernization Capital Spending 9,314 10,699 1,385 completed. Conference and Event Center Volum es Driving the P&L 34 Economic Development Financial Highlights 2020 Net Operating Income $.4M favorable to revised budget and $5.1M lower than 2019 Revenue unfavorable to revised budget by $6.2M and $11.7M lower than 2019 driven primarily by COVID- 19 cancellations and construction at the Conference and Event Centers. Expenses favorable to revised budget by $6.6M driven by less conferences, timing of Tourism initiatives, and a favorable pension credit. Expenses are lower by $6.5M Y/Y due to variable cost associated with lower Conference & Event Center volumes. EDD spent 87% of Fav (UnFav) Incr (Decr) revised capital 2018 2019 2020 2020 2020 Actual vs. Revised Change from 2019 Revised Appr ove d Budget Variance budget in 2020 with $ in 000's Actual Actual Actual B udg e t B udg e t $ % $ % most attributed to Total Revenues 20,705 21,151 9,470 15,658 19,110 (6,188) -40% (11,681) -55% the Bell Harbor Total Operating Expenses 27,028 27,155 20,611 27,222 29,368 6,611 24% (6,544) -24% Conference Center Net Operating Income (6,323) (6,004) (11,141) (11,564) (10,258) 423 4% (5,138) -86% Depreciation 3,948 3,647 3,611 3,392 3,389 (220) -6% (35) -1% Modernization. Net Income (10,271) (9,651) (14,753) (14,956) (13,647) 203 1% (5,102) -53% 35 2020 EDD Program Advancements Provided relief to 40+ waterfront tenants impacted by pandemic related operating restrictions. Maintained 94% occupancy across real estate portfolio despite COVID pandemic challenges. Advanced design work on T91 Uplands and Fishermen's Terminal buildings and formalized funding partnership with WA Department of Commerce to support Maritime Innovation Center development. Surpassing 2020 Port WMBE utilization (non-construction) goal through Q3 (16.92% actual vs. 14% goal). Worked with Maritime Blue to launch successful inaugural Maritime innovation accelerator program that included cohort of 11 emerging maritime companies. 36 Central Services 2020 Financial Performance Report Central Services Financial Summary Financial Highlights 2020 2020 2020 Act vs Rvsd Operating revenues $2.9M favorable due Figures in $000s Actual Rvsd Bud Appr. Bud Variance to unbudgeted revenue from Police and Revenues 2,927 40 40 2,887 Derelict Vessel Reimbursements. Core Central Support Services 84,705 91,594 93,604 6,889 Operating expenses $10.1M favorable P olic e 27,538 31,312 31,444 3,774 Capital Development 9,096 8,611 12,513 (485) largely due to DRS Pension Plan credit of Environment & Sustainability 10,433 10,399 12,866 (33) $9.4M. O&M Expenses 131,772 141,916 150,427 10,144 Capital spending $6.3M lower than the Capital Spending 6,347 12,691 6,344 revised budget. 38 Central Services Business Events Placed a total of 30 interns with private maritime employers and nonprofits in 2020 under the Youth Maritime Collaborative. Partnered with four non-profits to provide paid internships and professional training opportunities in Port-related industries to nearly 200 low-income youth and youth of color under the Opportunity Youth Initiative. Hosted three Career Awareness events with Highline School District: Boeing Academy for STEM Learning, POS Fire Department, and ICT. Began the process of Police Assessment in the following categories: Use of Force, Oversight, Accountability, Racial Equity, Civil Rights, and Mutual Aid. Announced the first round of the South King County Fund economic recovery grants. Continued to work with City of Seattle in support of West Seattle Bridge, traffic detours, and low bridge access. Held 6-part Caucusing for Change series in Oct and Nov, included guest speakers from King County, JustLead WA, and Port employees sharing their personal experiences with race and racism. Held virtual events for 2020 Community Giving Campaign with 11 speakers from 11 different nonprofits /communities. 39 Central Services Financial Highlights Fav (UnFav) Incr (Decr) 2018 2019 2020 2020 2020 Actual vs. Revised Change from 2019 Revised Approve d Budget Variance $ in 000's Actual Actual Actual Budge t Budge t $ % $ % Total Operating Revenues (500) 1,282 2,927 40 40 2,887 7218.3% 1,645 128.3% Core Central Support Services 74,419 79,276 84,705 91,594 93,604 6,889 7.5% 5,429 6.8% P olic e 23,908 27,793 27,538 31,312 31,444 3,774 12.1% (255) -0.9% Capital Development 8,999 10,038 9,096 8,611 12,513 (485) -5.6% (942) -9.4% Environment & Sustainability 8,770 10,748 10,433 10,399 12,866 (33) -0.3% (315) -2.9% Total Operating Expenses 116,097 127,855 131,772 141,916 150,427 10,144 7.1% 3,917 3.1% 2020 Total Operating Expenses $10.1M favorable to the Revised Budget due to: DRS Pension Plan credit of $9.4M. Lower Payroll of $4.6M due to vacancies and frozen positions. Less Charges to Capital Projects of $2.9M due to project delays. 2020 Total Operating Expenses $3.9M higher than 2019 due to: Higher payroll costs due to merit increases. Additional FTEs and funding to support Port Wide goals and initiatives. Increase in Outside Services costs in 2020. 40 Port Wide 2020 Financial Performance Report Port Wide Financial Highlights 2020 Actuals vs. 2020 Revised Budget: o Operating Revenues: $128.9M or 20.1% unfavorable to the revised budget. o Operating Expenses: $26.1M or 6.0% below the revised budget. o Net Operating Income before Depreciation: $102.8M or 51.0% unfavorable to the revised. o Total capital spending: $540.1M, 100.8% of the total revised budget. 2020 Actuals vs. 2019 Actuals: o Operating Revenues: $253.3M or 33.2% lower than 2019. o Operating Expenses: $31.1M or 7.0% lower than 2019. o Net Operating Income before Depreciation: $222.2M or 69.2% lower than 2019. 42 Port Wide Financial Performance Trends Airport Non-Aero Revenues Aeronautical Revenues Non-Airport Revenues Total Operating Expenses NOI In 000s Operating Revenues are $128.9M unfavorable to 900 the revised budget due to lower airline activity, 800 cancelled cruise season, and reduced operations 700 at Port facilities. 600 Total Operating 500 Expenses are $26.1M below the revised 400 budget due to: o DRS Pension credit 300 o Hiring freeze reduced payroll expenses 200 o Savings in Outside 100 Services, Travel and Other Employee - Expenses, and 2016 2017 2018 2019 2020 Act 2020 2020 Bud Promotional Hosting Rvsd_Bud 43 Comprehensive Financial Summary Fav (UnFav) 2018 2019 2020 2020 2020 Act/Rvsd Bud Var ($ in 000's) Actual Actual Actual Rvsd Bud Appr. Bud $ % Explanation Revenues 1. Operating Revenues 689,390 764,174 510,828 639,717 811,616 (128,890) -20.1% See operating revenue slides for details 2. Tax Levy 71,771 73,801 76,196 76,385 76,385 (189) -0.2% In line with budget 3. PFCs 94,070 100,004 34,637 99,505 99,505 (64,868) -65.2% Lower enplanement than budgeted 4. CFCs 21,802 22,355 15,429 17,630 23,914 (2,201) -12.5% Less rental car transactions than budgeted 5. Fuel Hydrant 6,942 6,742 6,886 7,022 7,022 (136) -1.9% In line with budget 6. Non-Capital Grants & Donations 1,573 2,880 150,143 2,551 2,551 147,592 5785.7% $147M CARES grant for 2020 7. Capital Contributions 43,650 17,736 20,909 48,010 48,010 (27,101) -56.4% Lower TSA OTA and FAA grants 8. Interest Income 26,287 54,078 41,406 27,669 27,669 13,737 49.6% Unrealized gain on investments Total 955,484 1,041,771 856,433 918,490 1,096,672 (62,057) -6.8% Expe ns e s 1. O&M Expense 397,638 443,089 411,954 438,081 469,769 26,127 6.0% See operating expense slides for details 2. Depreciation 164,362 174,971 179,807 179,056 179,056 (751) -0.4% More new assets came into services 3. Revenue Bond Interest Expense 100,432 105,601 133,149 157,231 157,231 24,082 15.3% Lower interest rates than budgeted 4. GO Bond Interest Expense 13,414 12,493 11,850 12,003 12,003 153 1.3% In line with budget 5. PFC Bond Interest Expense 4,368 3,547 2,670 2,740 2,740 70 2.6% In line with budget 6. Public Expense 5,269 12,986 6,658 19,233 19,233 12,575 65.4% Safe & Swift/Heavy Haul delay 7. Non-Op Environmental Expense 10,600 118 5,971 5,000 5,000 (971) -19.4% In line with budget 8. Other Non-Op Rev/Expense 3,217 21,959 22,033 2,905 2,905 (19,128) -658.4% Assets retirements Total 699,299 774,765 774,091 816,249 847,937 42,158 5.2% Special Item 34,923 - - - - - 0.0% T25 NRD restoration project special item Retro Adjustment to Net Position 2,721 - - - - - 0.0% Net of GASBs 75 and 86 adjustments Change In Net Assets 218,541 267,007 82,342 102,241 248,735 (19,899) -19.5% 44 Community Programs Summary The pandemic affected the Fav (UnFav) Incr (Decr) implementation of several programs, 2019 2020 2020 2020 Actual vs. Revised Change from 2019 ACE grants, E&S projects, HS Revised Approved Budget Variance internship, Tourism Marketing Program (in $000) Actual Actual Budget Budget $ % $ % Support, etc. 1) Airport Community Ecology (ACE) Fund * 260 168 522 522 354 67.8% (92) -35.4% 2) Duwamish Valley Community Equity Program - 272 292 292 20 7.0% 272 - The bulk of the SKC Fund spending is 3) South King County Support Program * - 80 1,500 1,500 1,420 94.7% 80 - planned for 2021 to jumpstart 4) EDD Partnership Grants 763 865 960 960 95 9.9% 101 13.3% economic recovery, support small 5) City of SeaTac Community Relief *1 1,400 1,400 1,400 1,400 - - - - business development, and continue 6) Airport Spotlight Ad Program 1 & 2 934 327 1,148 1,148 821 71.5% (607) -65.0% 7) Energy & Sustainability Fund * 283 5 150 250 145 96.9% (278) -98.3% funding environmental initiatives. 8) Maritime Blue (formerly Maritime Innovation Center) - - 150 150 150 100.0% - - 2020 spending is tied to Small 9) Tourism Marketing Support Program 1,338 952 2,842 1,536 1,890 66.5% (385) -28.8% Business recovery initiative. 10) Workforce Development 1,771 3,755 4,403 3,119 648 14.7% 1,984 112.0% a. Opportunity Youth Initiative 3 - 1,338 1,500 - 162 10.8% 1,338 - Opportunity Youth Initiative was 11) Diversity in Contracting 883 1,025 1,331 1,520 307 23.0% 142 16.1% successfully launched in the summer 12) High School Internship Program 529 295 632 657 337 53.3% (234) -44.2% providing employment and valuable 13) Equity, Diversity & Inclusion 565 919 925 1,346 7 0.7% 353 62.5% on-the-job skills to youth in 14) Sustainable Aviation Fuels & Air Emissions Program - - 40 40 40 100.0% - - underserved communities. The Port 15) Low Carbon Fuel Standard Support - 118 105 150 (13) -12.4% 118 - partnered with 4 local non-profit TOTAL 8,726 10,180 16,401 14,590 6,221 37.9% 1,454 16.7% organizations spending a total of $1.34M. Notes: 1) Budgeted as Non-ops Expenses. Airport Spotlight program spending 2) Free advertising space provided at the Airport. FAA requires that lost revenue be reimbursed to the Airport. reflect the current Fair Market Value 3) Youth Opportunities Initiative was added mid-year in 2020 and included in WFD. of the ad space, lower than originally * Program with total designated funding limit. anticipated. 45 Port Wide Capital Spending 2020 Capital spending: $540.1M, 100.8% of the Revised Budget. 46 2021 Capital Budget Update Capital Budget presented Draft Plan of Budget (year- Division (in $ Finance end update) during the 2021 budget and plan of finance Airport 548,927 533,179 briefings is updated each Ma ritime 35,185 33,450 quarter. Economic Development 9,440 7,502 The 2020 Q4 update Central Services 9,244 12,658 establishes the approved Subtotal - Capital Projects 602,796 586,789 capital budget for 2021 incorporating the final CIP Cash Adjustment (99,564) (54,088) capital spending in 2020 Total Proposed CIP 503,232 532,701 into the forecast for 2021. 47 Aviation Division Appendix 2020 Financial Performance Report Aviation Accomplishments Health & Safety: Rate of major ground incidents 16.9 vs. goal of < 18.2; 98% safety evaluation score vs. target of 90% Security: Completed specialized emergency management training in December Employee Engagement: November pulse survey all responses 76% positive (or greater) Community: Completed design of 5 single family homes; new positions approved in 2021 budget to facilitate acceleration of noise insulation program Innovation: Completed 4 Shark Tank events Social Responsibility: WMBE spending on non-public works at 17.2% vs. goal of 15%; DBE spending of 8.8% vs. goal of 8% Customer Experience: Completed draft of long-term FlyHealthy@SEA planning document; Achieved ACI Health Accreditation; Active implementation of SEA brand Environment & Sustainability: Began using renewable natural gas in October Financial Sustainability: Achieved revised 2020 targets for debt service coverage, O&M spending, non-aero revenues and ADF-funded capital spending Asset Management and Capital/Planning: Completed asset inventory for Main Terminal and Concourse A; on track to open IAF and NSAT in 2021. 49 Capital Spending Expected to Top Budget Major 2020 Variances: IAF = $44M NSAT = ($26M) Bag Opt. ($24M) Other = $24M 50 Airport Activity % Change Passenger Activity 2018 YE 2019 YE 2020 YE from 2019 Change Airline 2019 v. 2020 2020 Market Share Total Passengers (000's) Alaska -63.3% 57.7% Domestic 44,422 46,101 18,690 -59.5% Delta -71.0% 20.8% International 5,428 5,728 1,371 -76.1% American -56.9% 5.8% Total 49,850 51,829 20,062 -61.3% United -66.9% 5.6% Southwest -71.3% 5.0% Operations 438,391 450,487 296,048 -34.3% Landed Weight (In Millions of lbs.) 2020 Year End: Cargo 2,471 2,485 2,713 9.2% Passengers All other 27,879 29,078 17,549 -39.6% YTD passenger reduction of Total 30,350 31,562 20,262 -35.8% Cargo - Metric Tons 61% is due to impact of Domestic freight 241,397 252,671 351,352 39.1% COVID-19 on travel starting International & Mail freight 190,918 200,878 103,232 -48.6% in March 2020 Total 432,315 453,549 454,584 0.2% 51 Aviation Financial Summary Fav(UnFav) Actual vs. Revised Incr/(Decr) Financial Summary 2018 2019 2020 2020 2020 Budget Variance Change from 2019 Revised Approved ($ in 000's) Actual Actual Actual Budget Budget $ % $ % Operating Revenue Aeronautical Revenues 291,268 357,598 297,909 401,342 401,342 (103,433) -25.8% (59,689) -16.7% Non-Aeronautical Revenues 257,707 269,037 116,473 135,074 283,167 (18,601) -13.8% (152,564) -56.7% Total Operating Revenues 548,975 626,636 414,382 536,416 684,510 (122,034) -22.7% (212,254) -33.9% Total Operating Expenses 318,849 356,635 329,680 348,826 377,306 19,146 5.5% (26,955) -7.6% Net Operating Income 230,126 270,001 84,702 187,589 307,203 (102,887) -54.8% (185,299) -68.6% CPE 10.79 12.85 26.50 13.92 13.92 (12.58) (0.90) 13.65 106.2% Non-Aero NOI ($ in 000s) 149,959 150,752 6,671 21,443 154,660 (14,772) -68.9% (144,081) -95.6% Enplaned passengers (in 000s) 24,894 25,874 10,044 26,667 26,667 (16,623) -62.3% (15,830) -61.2% - Capital Expenditures (in 000s) 579,135 573,598 504,073 489,182 513,131 (14,891) -3.0% (69,525) -12.1% 52 Key Performance Measures Fav(UnFav) 2018 2019 2020 2020 2020 Actual vs. Revised Incr/(Decr) Budget Variance Change from 2019 Revised Approved Actual Actual Actual Budget Budget $ % $ % Key Performance Metrics Cost per Enplanement (CPE) 10.79 12.86 26.50 13.92 13.92 (12.58) -90.4% 13.64 106.1% Non-Aeronautical NOI (in 000's) 149,959 150,752 6,671 21,443 154,660 (14,772) -68.9% (144,081) -95.6% Other Performance Metrics O&M Cost per Enplanement 12.81 13.78 16.41 13.08 14.15 (3.33) -25.5% 2.63 19.1% Non-Aero Revenue per Enplanement 10.35 10.40 5.80 5.07 10.62 0.73 14.5% (4.60) -44.2% Debt per Enplanement (in $) 133 133 163 123 123 (40) -32.8% 30 22.7% Debt Service Coverage 1.66 1.68 1.40 1.80 1.80 (0.40) -22.1% (0.28) -16.6% Days cash on hand (10 months = 304 days) 235 314 327 332 332 -5 -1.6% 12 3.9% Aeronautical Revenue Sharing ($ in 000's) (36,863) (17,146) 1 - - 1 0.0% 17,147 100.0% Activity (in 000's) Enplanements 24,894 25,874 10,044 26,667 26,667 (16,623) -62.3% (15,830) -61.2% Total Passengers 49,789 51,748 20,087 53,334 53,334 (33,246) -62.3% (31,660) -61.2% 53 Aviation Expense YE Summary Fav(UnFav) Actual vs. Revised Incr/(Decr) Total Airport Expense Summary 2018 2019 2020 2020 2020 Budget Variance Change from 2019 Revised Approved ($ in 000's) Actual Actual Actual Budget Budget $ % $ % Operating Expenses Payroll 133,999 147,076 152,895 156,826 160,340 3,930 2.5% 5,820 4.0% Outside Services 65,475 68,801 63,922 70,401 79,889 6,479 9.2% (4,878) -7.1% Utilities 18,306 18,180 15,695 20,642 21,180 4,947 24.0% (2,485) -13.7% Other Expenses 3,966 12,272 3,341 (1,682) 5,224 (5,023) 298.7% (8,931) -72.8% Total Airport Direct Charges 221,746 246,329 235,854 246,187 266,634 10,333 4.2% (10,475) -4.3% Environmental Remediation Liability 6,233 15,900 (2,361) 878 2,648 3,239 368.9% (18,261) -114.8% Capital to Expense 6,891 2,089 2,588 - - (2,588) 498 23.8% Total Exceptions 13,124 17,989 227 878 2,648 651 74.2% (17,763) -98.7% Total Airport Expenses 234,870 264,318 236,081 247,065 269,282 10,984 4.4% (28,237) -10.7% Corporate 60,659 65,671 68,316 71,646 77,460 3,330 4.6% 2,644 4.0% Police 19,231 22,290 22,150 26,122 26,233 3,972 15.2% (140) -0.6% Maritime/Economic Development/Other 4,088 4,355 3,134 3,994 4,332 860 21.5% (1,221) -28.0% Total Charges from Other Divisions 83,979 92,316 93,599 101,761 108,025 8,162 8.0% 1,283 1.4% - Total Operating Expenses 318,849 356,635 329,680 348,826 377,306 19,146 5.5% (26,955) -7.6% C OVID19 Impact drives the reduction in Expenses 54 Aeronautical Business YE Lower Aero Revenues driven by 61% in enplanements and other airline activity Fav(UnFav) Actual vs. Revised Incr/(Decr) Aeronautical NOI 2018 2019 2020 2020 2020 Budget Variance Change from 2019 Revised Approved ($ in 000's) Actual Actual Actual Budget Budget $ % $ % Rate Base Revenues Airfield Movement Area 116,703 123,436 84,906 132,128 132,128 (47,223) -35.7% (38,530) -31.2% Airfield Apron Area 15,627 22,016 15,146 22,011 22,011 (6,865) -31.2% (6,870) -31.2% Terminal Rents 169,318 205,283 171,607 212,943 212,943 (41,336) -19.4% (33,676) -16.4% Federal Inspection Services (FIS) 16,226 12,321 8,616 18,162 18,162 (9,546) -52.6% (3,706) -30.1% Total Rate Base Revenues 317,874 363,057 280,275 385,245 385,245 (104,970) -27.2% (82,782) -22.8% Airfield Commercial Area 10,257 11,687 17,633 16,097 16,097 1,536 9.5% 5,945 50.9% Subtotal before Revenue Sharing 328,131 374,744 297,908 401,342 401,342 (103,434) -25.8% (76,836) -20.5% Revenue Sharing (36,863) (17,146) 1 - - 1 17,147 -100.0% Total Aeronautical Revenues 291,268 357,598 297,909 401,342 401,342 (103,433) -25.8% (59,689) -16.7% Total Aeronautical Expenses 236,630 238,349 219,878 235,196 248,799 15,318 6.5% (18,471) -7.7% Aeronautical NOI 54,638 119,249 78,031 166,147 152,544 (88,115) -53.0% (41,218) -34.6% Debt Service (91,673) (110,945) (62,607) (121,410) (121,410) 58,802 -48.4% 48,337 -43.6% Net Cash Flow (37,035) 8,305 15,424 44,737 31,134 (29,313) -65.5% 7,119 85.7% 55 Aero Cost Drivers 2020 Forecast to 2020 Budget Impact on Aero Revenues O&M $29.2M lower primarily driven by 2020 2020 Budget vs Actuals two main factors: $ in 000's Budget Actual $ % COVID budget cost reductions O&M 242,981 213,775 (29,205) -13.7% $13.6 CARES Grant O&M - (22,507) (22,507) 100.0% $2.3M YE Aero Pension Credit Net O&M 242,981 191,268 (51,712) -27.0% Additional savings from added Debt Service Gross 174,455 166,848 (7,607) -4.6% Debt Service PFC Offset (62,998) (36,390) 26,608 -73.1% vacancies, contract savings and CARES Grant Debt Service - (71,763) (71,763) 100.0% ERL Net Debt Service 111,457 58,694 (52,762) -89.9% Debt Service Gross $7.6M lower due to Amortization 32,326 32,359 33 0.1% deferring 2008 VRBD principal payment, Space Vacancy (490) (1,083) (593) 54.8% overlaid by Capitalized interest. TSA Operating Grant and Other (1,028) (960) 68 -7.1% PFC Offset $26.6M lower due to applied Rate Base Revenues 385,246 280,279 (104,967) -37.5% PFC's reduced in Terminal, Baggage & FIS - Commercial area 16,097 17,633 1,536 8.7% adding $26M back to rate base Total Aero Revenues 401,343 297,912 (103,431) -34.7% TSA Grant Other - $960K O&M Offset for ACTUAL YEAR END SETTLEMENT TSA Police Grant & FEMA Grant Rate Based Revenues (Billed) 268,985 Rate Based Revenues Requirement 267,789 CARES Grant Aero Portion: 2020 Settlement Surplus - Prior to Leasehold Tax 1,196 Payroll Impact (O&M) Removing *Excludes Non-Settlement Items - Other Movement Area Revenues, $22.5M from Rate Base RON/Hardstand, Other Terminal Revenues & Airfield Commercial Area Debt Service Impact - Removing $71.7M from Rate Base Aero ra te base revenues based o n cost recovery formulas 56 Non-Aeronautical Business YE Passenger Volume down 61% 2020 Actuals to 2019 Actuals O&D Passenger Volume down 65% Non-Aero Revenue: All Non-Aero lines of business Most Non-Aero activity closely aligned with % decline in PAX volume impacted by COVID-19. Parking passenger preference for close in self-parking reflected in Fav(UnFav) parking revenue decline not as deep Actual vs. Revised Incr/(Decr) as O&D passenger decline. Non-Aeronautical NOI 2018 2019 2020 2020 2020 Budget Variance Change from 2019 Revised Approved Rental Car deeper decline due to ($ in 000's) Actual Actual Actual Budget Budget $ % $ % lower CFC collections. Concession Non-Aeronautical Revenues revenue decline was less than the Public Parking 80,212 82,125 34,502 40,813 89,485 (5,085) -12.5% (46,397) -56.5% O&D passenger decline. Rental Cars 53,569 52,567 16,637 19,209 51,149 (3,846) -20.0% (37,204) -70.8% ADR revenue decline was less than Ground Transportation 18,772 20,765 6,557 11,092 22,299 (3,391) -30.6% (13,064) -62.9% the decline in passengers, despite Airport Dining & Retail 59,021 61,615 25,418 27,753 66,145 (2,208) -8.0% (36,070) -58.5% partial year closures and severe Other 46,132 51,966 33,359 36,207 54,089 (2,485) -6.9% (18,244) -35.1% restaurant operating restrictions. Total Non-Aeronautical Revenues 257,707 269,037 116,473 135,074 283,167 (17,014) -12.6% (150,978) -56.1% Non-Aero space rent real estate Total Non-Aeronautical Expenses 82,219 118,286 109,802 113,631 128,508 4,229 3.7% (8,884) -7.5% lease revenue not directly impacted Non-Aeronautical NOI 175,488 150,752 6,671 21,443 154,660 (12,785) -59.6% (142,093) -94.3% by decline in passenger volume Less: CFC Surplus (7,724) (6,834) - - - - 6,834 -100.0% Non-Aero Expenses: Adjusted Non-Aeronautical NOI 167,764 143,917 6,671 21,443 154,660 (12,785) -59.6% (135,259) -94.0% Lower spending reflects cost cutting Debt Service (44,545) (49,299) (33,065) (50,064) (50,064) 16,999 -34.0% 16,234 -32.9% measures implemented to mitigate Net Cash Flow 123,219 94,619 (26,394) (28,621) 104,596 4,214 -14.7% (119,026) -125.8% pandemic impacts. 57 Non-Aero Revenue By Business Unit Total Non-Aero Revenues Non-Aero Revenues per Enplanement 300,000,000 4.50 4.00 250,000,000 3.50 200,000,000 3.00 Revenue 2.50 150,000,000 Revenue Per Enplanement 2.00 100,000,000 1.50 1.00 50,000,000 0.50 - - 2019 2020 2020 2020 2019 2020 2020 2020 Actual Actual R Budget A Budget Actual Actual R Budget A Budget Public Parking Rental Cars Ground Transportation Public Parking Rental Cars Ground Transportation Airport Dining & Retail Commercial Properties Other Non-Aero Airport Dining & Retail Commercial Properties Other Non-Aero Non-Aero Revenue overview: Overall Non-Aero Revenue decline closely aligned to -61% decline in passenger volume 2020 Non-Aero revenue from concession fees or transaction volume (Parking, Rental Car, GT, ADR, Clubs & Lounges, In-flight Kitchens) are closely aligned with the decline in passenger volume Commercial Properties and other Non-Aero line of business with revenue from space rent for real estate leases were relatively unaffected by the COVID-19 decline in enplanements 58 Public Parking outperformed O&D passenger decline Passenger Volume down 61% 2020 Actuals vs. 2019 Actuals O&D Passenger Volume down 65% General Garage Parking (includes pre-booking program) Garage Public Parking - Revenue Detail Fav (UnFav) Incr (Decr) parking activity decline less than 2019 2020 2020 2020 Act to R Bud Var Change from 2019 the -65% decline in O&D passenger $ in 000's Actual A Budget R Budget Actual $ % $ % volume, which reflects passenger Parking Garage Revenue to Port preference for self-parking over General Parking/Terminal Direct 73,562 81,300 36,050 27,157 (8,893) -32.7% (46,406) -63.1% other modes of transportation. Prebooking 217 - 640 2,935 2,295 78.2% 2,718 1254.0% Revenue to Port - General Parking 73,779 81,300 36,690 30,092 (6,598) -21.9% (43,688) -59.2% Premier Corporate decline Other Garage Revenue reflects compound impact of O&D Premier Corporate Parking 1,415 1,360 820 449 (371) -82.7% (966) -68.3% passenger decline and 2020 Passport Parking Program 3,582 3,570 1,720 2,738 1,018 37.2% (844) -23.6% program allowing Employee Parking Revenue to Port - Parking Programs 4,997 4,930 2,540 3,187 647 20.3% (1,810) -36.2% customers to park in the main Total Parking Garage Revenue 78,776 86,230 39,230 33,278 (5,952) -17.9% (45,498) -57.8% garage (rather than NEPL), which Other Parking Revenue continued through year-end. Concession Rent - Doug Fox off-site parking 3,292 3,200 1,560 1,186 (374) -31.5% (2,106) -64.0% All Other Parking Revenue 56 55 23 37 14 38.0% (19) -34.3% Passport program remained relatively strong during 2020, as Total Parking Revenue 82,125 89,485 40,813 34,501 (6,312) -18.3% (47,624) -58.0% significant portion of usage is from airport tenant employees. Doug Fox revenue decline closely aligned with decline in O&D passenger volume. 59 Public Parking metrics reflect preference for close in self-parking Parking Revenue Metrics Fav / (UnFav) Incr / (Decr) 2019 2020 2020 2020 Act to R Bud Var Change from 2019 in 000's Actual A Budget R Budget Actual # % # % Total Enplanements 25,874 26,667 12,777 10,044 (2,733) -27.2% (15,830) -61.2% O&D % 70.2% 71.0% 71.0% 64.0% -7.0% -10.9% -6.2% -8.8% O&D Enplanements 18,163 18,933 9,072 6,428 (2,644) -41.1% (11,735) -64.6% Revenue per O&D Enplanement Metrics Public Parking $ 4.06 $ 4.29 $ 4.04 $ 4.68 $ 0.64 13.6% $ 0.62 15.2% Premier Corporate Parking $ 0.08 $ 0.07 $ 0.09 $ 0.07 $ (0.02) -29.5% $ (0.01) -10.4% Passport Parking Program $ 0.20 $ 0.19 $ 0.19 $ 0.43 $ 0.24 55.5% $ 0.23 116.0% Total Garage Revenue per O&D Enplanement $ 4.34 $ 4.55 $ 4.32 $ 5.18 $ 0.85 16.5% $ 0.84 19.4% Concession Rent - Doug Fox off-site parking $ 0.18 $ 0.17 $ 0.17 $ 0.18 $ 0.01 6.8% $ 0.00 1.8% All Other Parking Revenue $ 0.00 $ 0.00 $ 0.00 $ 0.01 $ 0.00 56.1% $ 0.00 85.7% Total Parking per O&D Enplanement $ 4.52 $ 4.73 $ 4.50 $ 5.37 $ 0.87 16.2% $ 0.85 18.7% Public Parking Key Metrics - 2020 Actuals vs. 2019 Actuals: General Garage Parking (includes pre-booking) revenue per enplanement increased during pandemic O&D passenger decline, which indicates passenger preference for close in self-parking Premier Corporate metric slight decline due to both COVID impacts of fewer passengers and offsetting benefit for Employee Parking customers able to park in the main garage at no additional cost (rather than parking at NEPL and utilizing shuttle bus) Passport parking programs metric increased due to continued demand from airport tenant employees who continued to utilize during COVID impacts due to preference for close in self-parking 60 Rental Cars YE Rental Car - Revenue Detail Fav / (UnFav) Incr / (Decr) 2019 2020 2020 2020 Act vs R Bud Var Change from 2019 2020 Actuals vs. 2019 $ in 000's Actual A Budget R Budget Actual $ % $ % Actuals Total Enplanements 25,874 26,667 12,777 10,044 (2,733) -27.2% (15,830) -61.2% O&D % 70.2% 71.0% 71.0% 64.0% -7.0% -10.9% -6.2% -8.8% Rental Car Concession O&D Enplanements 18,396 18,933 9,072 6,428 (2,644) -41.1% (11,968) -65.1% Revenue decline was less Gross Sales by Operators 328,156 335,405 153,455 122,372 (31,083) -25.4% (205,784) -62.7% than the O&D passenger Total Transactions 1,414 1,369 653 519 (134) -25.7% (895) -63.3% decline. During 2020 , car Average Ticket $232.06 $ 245.00 $ 235.00 $ 235.57 $0.57 0.2% $3.50 1.5% Average Length of Stay 4.49 4.59 4.50 4.93 0.43 8.7% 0.43 9.6% rental appeared to be the 2nd Transactions/O&D Enplanements 7.69% 7.23% 7.20% 8.08% 0.88% 10.9% 0.39% 5.1% preferred transportation CFC Revenue Summary option, following the primary Total Transaction Days 6,356 6,284 2,939 2,560 (379) -14.8% (3,796) -59.7% preference for close in self- CFC Rate per Transaction Day $6.00 $6.00 $6.00 $6.00 $0.00 0.0% $0.00 0.0% parking in the Public Parking CFC Revenue Earned 38,137 37,700 17,630 15,362 (2,268) -14.8% (22,776) -59.7% Garage. Other CFC Collections (9) 0 - - - N/A 9 -100.0% Total CFC Revenue 38,128 37,700 17,630 15,362 (2,268) -14.8% (22,767) -59.7% CFC Operating Revenue - CFC Debt Service Reserve Requirement (23,655) (23,914) (23,914) (24,019) (105) 0.4% (364) 1.5% collections declined in 2020 Reserve Fund Release (bond maturation) 1,300 - - - - N/A (1,300) -100.0% to a level below current year Net Debt Service (22,355) (23,914) (23,914) (24,019) (105) 0.4% (1,664) 7.4% Residual - CFC Operating Revenue 15,773 13,786 - - - N/A (15,773) -100.0% debt service. Since CFC Fav / (UnFav) Incr / (Decr) Operating Revenue is a Rental Car - Revenue Summary 2019 2020 2020 2020 Act vs R Bud Var Change from 2019 residual (only after covering $ in 000's Actual A Budget R Budget Actual $ % $ % current year debt service), in RCF Concession Revenue to Port 32,870 33,500 15,346 12,531 (2,815) -22.5% (20,339) -61.9% 2020 CFC operating revenue Residual - CFC Operating Revenue: 15,773 13,786 - - - N/A (15,773) -100.0% was zero. Land Rent/Space Rent/Other 3,924 3,863 3,863 4,106 243 5.9% 182 4.6% Total Rental Cars Operating Revenue 52,567 51,149 19,209 16,637 (2,572) -15.5% (35,930) -68.4% Broad and severe impact to Landside re venue from COVID-19 61 Ground Transportation YE Revenue Detail Fav (UnFav) Incr (Decr) 2020 Actuals vs. 2019 Actuals 2019 2020 2020 2020 Act vs R Bud Var Change from 2019 $ in 000's Actual A Budget R Budget Actual $ % $ % Ground Transportation Revenues Ground Transportation revenues and GT Transportation Network Companies 12,982 14,794 7,492 4,032 (3,460) -85.8% (8,950) -68.9% operators severely impacted by On Demand Taxis 3,578 3,321 1,504 857 (647) -75.4% (2,720) -76.0% compounding pandemic factors: On Demand Limos 837 837 411 371 (40) -10.7% (466) -55.6% COVID-19 declines in O&D passenger Belled In Taxis (Annual Permit) 27 24 12 12 - 0.0% (15) -56.3% Pre-Arranged Limos volumes (Annual Permit) 611 581 278 209 (69) -33.3% (402) -65.9% Courtesy Cars (cost recovery) 2,019 1,984 951 877 (74) -8.4% (1,141) -56.5% Customer preference away from All other Operators (cost recovery) 418 466 250 86 (164) -190.4% (332) -79.4% shared ride transportation options Other Misc Revenues 293 294 194 113 (81) -72.4% (181) -61.6% during this pandemic. Total GT Revenue 20,765 22,299 11,092 6,557 (4,535) -69.2% (14,208) -68.4% Trip Activity Fav / (UnFav) Incr / (Decr) TNC trip decline of 69% was deeper than 2019 2020 2020 2020 Act vs R Bud Var Change from 2019 the decline in O&D passengers (65%) in 000's Actual A Budget R Budget Actual # % # % Ground Transportation Trips Taxi trip declined (76%) even more deeply Transportation Network Companies 2,172 1,929 864 672 (192) -28.6% (1,500) -69.1% On Demand Taxis 616 696 207 150 (57) -37.9% (466) -75.7% than TNCs. On Demand Limos 65 67 22 12 (10) -79.1% (53) -81.4% On-demand Limos (STILA) made the Belled In Taxis (Annual Permit) 13 18 3 2 (1) -54.5% (11) -84.7% Pre-Arranged Limos (Annual Permit) 65 344 122 87 (35) -40.3% 22 33.1% decision to cease operations at SEA. This Courtesy Cars (cost recovery) 1,236 1,160 558 557 (0) -0.1% (678) -54.9% long term GT operator agreement had All other Operators (cost recovery) 74 57 22 16 (6) -35.7% (58) -78.5% Total GT Trip Activity 4,240 4,271 1,796 1,496 (301) -20.1% (2,744) -64.7% been in holdover. Total Enplanements 25,874 26,667 12,777 10,044 (2,733) -27.2% (15,830) -61.2% All other GT operators impacted to varying O&D % 70.2% 71.0% 71.0% 64.0% -7.0% -10.9% -6.2% -8.8% degrees. O&D Enplanements 18,422 18,933 9,072 6,428 (2,644) -41.1% (11,994) -65.1% Rev per O&D Enplanement TNC 11.8% 10.2% 9.5% 10.5% 0.9% 8.9% -1.3% -11.3% T axi 3.3% 3.7% 2.3% 2.3% 0.1% 2.3% -1.0% -30.3% All other 23.0% 22.6% 19.8% 23.3% 3.5% 14.9% 0.3% 1.1% Total Trips per O&D Enplanement 23.0% 22.6% 19.8% 23.3% 3.5% 14.9% 0.3% 1.1% 62 Airport Dining & Retail YE Forecast 2020 Forecast vs. 2019 Actuals COVID-19 impacts to Airport Dining & Retail revenue has been severe, and compounded by passenger volume decline, significant unit closures during the year, restrictions on in-unit dining, and a prohibition on alcohol sales near year-end. Sales per Enplanement (SPE) on Food & Beverage and Retail grew slightly on a much declined passenger volume partially due to fewer food offerings on flights as airlines adjusted to changed operating conditions. Revenue per Enplanement (RPE) declined as tiered rents didn't reach higher tiers. 63 Non-Aero Commercial Properties Land Rent stable, but In-Flight Kitchen revenue negatively impacted by COVID-19 2020 Actuals vs. 2019 Actuals COVID-19 impacts to Non-Aero Commercial Properties revenue is primarily limited to In-Flight Kitchen concession revenue. In-Flight Kitchen Revenue decline is closely aligned with the decline in passenger volumes Land/Space Rent revenues are primarily fixed rates per sq.ft., and were therefore relatively unaffected by COVID-19 impacts 64 Clubs & Lounges Impacted by closures and passenger volume decline 2020 Forecast vs. 2019 Actuals COVID-19 impacts to Port-owned common use Clubs & Lounges reflects overall decline in passenger volume. As a result, both the South Satellite lounge and the Concourse A lounges were closed in mid-March 2020 due to the decline in passengers and in response to social distancing requirements. South Satellite Lounge was able to reopen on July 1st, 2020 with new safety protocols and is experiencing a steady increase in passenger activity using this lounge. A Concourse Lounge unfortunately remained closed through year-end 2020 and isn't expected to reopen until mid-2021 due to low passenger volumes. 65 2020 Capital Expenditures (1) The construction of the IAF has been delayed by a year from what had been planned at the 2020 2020 Budget Variance beginning of 2020. Substantial completion was June 2020. Now the pedestrian walkway is scheduled for YTD Revised completion in May 2021. $ % $ in 000's Actual Budget (2) $25.7M Increase due to added construction costs associated with work pulled forward (Operation International Arrivals Facility (1) 171,414 215,000 43,586 20.3% Silver Cloud) that would have been performed in 2021. NS NSAT Renov NSTS Lobbies (2) 160,268 134,528 (25,740) -19.1% (3) MII Rejection at the beginning of the year led to uncertainty whether the project would be rebid, so the spending was pushed out of the baseline. The contract has been executed and spending was Checked Bag Recap/Optimization (3) 38,437 14,500 (23,937) -165.1% accelerated. Remote Aircraft Deicing (4) 6,517 15,058 8,541 56.7% (4) New estimate has significant reduction as a result of value engineering, and bid came in lower than Terminal Security Enhancements Ph 2 (5) (611) 6,916 7,527 108.8% engineering estimate AFLD Pvmnt Program 2016-2020 (6) 18,390 13,133 (5,257) -40.0% (5) Cancellation of bollard purchase and major works contract have deferred work. And, $1M of project costs have been moved from capital to expenses given changes in procurement approach Restroom Upgrades Conc B, C, D (7) 8,977 5,400 (3,577) -66.2% (6) Construction was expedited to take advantage of downturn in air traffic operation, and tranfer of PLB Renew & Replace Phase 2 (8) 2,356 5,654 3,298 58.3% scope from 2025 Pavement Improvement program ARC Flash Hazard Mitgation (9) 172 3,405 3,233 94.9% (7) Bid overage for Phase 3 construction, increased construction costs for phase 2 with impacts from RCF Pavement Remediation (10) 3,538 6,198 2,660 42.9% COVID-19 as a factor contributed to higher than anticipated costs for 2020. Main Terminal Low Voltage Upgrade (11) 1,278 3,961 2,683 67.7% (8) Delayed work. 2 bridge installations have been moved to 2021 (9) Constructability reviews caused design delays, which pushed construction into 2022 Central Terminal Infrastructure & HVAC (12) 4,565 7,250 2,685 37.0% (10) Construction suspended and delayed one year due to Covid-19 Service Tunnel Renewal/Replace (13) 3,329 5,529 2,200 39.8% Sound Insulation Projects (14) 1,287 16,764 15,477 92.3% (11) 1 year behind schedule due to delays in getting designer and general contractor onboard All Other 84,156 107,888 23,732 22.0% (12) Project came under budget (13) Project is in closeout and savings on soft costs due to efficient construction, and contingency Subtotal 504,073 561,182 57,109 10.2% budget was not spent. CIP Cashflow Mgmt Reserve - (72,000) (72,000) 100.0% (14) Commission directed acceleration of the sound insulation projects in Q1 2020. However, they are Total Spending 504,073 489,182 (14,891) -3.0% projected to start in 2021. Highline insulation is funded by 67% AIP grants, 16% tax levy, and 17% airport funds. Forecast spen ding variances primarily due to COVID-19 impact 66 Maritime Division Appendix Q4 2020 Financial Performance Report Maritime 2020 Financial Summary Fav (UnFav) Incr (Decr) 2018 2019 2020 2020 2020 Actual vs. Revised Change from 2019 Variance from Revised Revised Appr ove d Budget Variance Budget $ in 000's Actual Actual Actual B udg e t B udg e t $ % $ % Ship Canal Fishing & Operations 3,502 3,929 4,704 4,264 4,264 440 10% 775 20% Revenue $470K lower due Elliott Bay Fishing & Commercial Operations 6,755 6,095 5,752 5,119 5,123 633 12% (344) -6% to no cruise season. Recreational Boating 12,035 12,484 12,611 13,361 13,361 (750) -6% 127 1% Cruis e 18,880 22,410 3,824 5,909 26,261 (2,085) -35% (18,586) -83% Direct Expenses Gra in 5,167 4,266 5,142 3,490 3,490 1,652 47% 876 21% Unfavorable due to Maritime Portfolio Management 11,305 10,108 10,074 10,428 10,428 (355) -3% (34) 0% $4M Capital to Other (69) (3) 4 11 11 (6) -59% 7 -247% Total Revenue 57,575 59,289 42,111 42,581 62,938 (470) -1% (17,178) -29% expense and 3.3M Expenses lease payment Maritime (Excl. Maint) 11,326 13,789 19,529 16,408 16,881 (3,120) -19% 5,740 42% Economic Development 4,347 4,987 4,511 5,626 5,756 1,115 20% (476) -10% reserve. Total Direct 15,673 18,776 24,039 22,035 22,637 (2,005) -9% 5,264 28% Overall Maintenance Expenses 11,416 12,186 12,029 12,426 13,073 397 3% (157) -1% Pension True up Envir Services & Planning 1,553 2,250 2,739 2,295 2,681 (444) -19% 489 22% $2.1M favorable. Seaport Project Management 295 175 1,061 330 356 (731) -221% 886 507% Total Support Services 13,265 14,611 15,828 15,051 16,110 (777) -5% 1,217 8% IT 2,558 2,685 2,719 2,895 2,906 176 6% 33 1% Police Expenses 4,041 4,086 2,865 3,368 3,382 503 15% (1,220) -30% External Relations 1,379 1,564 1,200 1,501 1,635 300 20% (363) -23% Other Central Services 6,117 6,645 6,534 6,974 7,481 441 6% (111) -2% Aviation Division / Other 220 278 315 368 245 53 14% 37 13% Total Central Services / Other 14,315 15,258 13,633 15,106 15,650 1,473 10% (1,625) -11% Total Expense 43,252 48,644 53,500 52,191 54,396 (1,309) -3% 4,856 10% NOI Before Depreciation 14,323 10,644 (11,389) (9,610) 8,541 (1,779) -19% (22,034) -207% Depreciation 18,022 17,627 17,624 17,249 17,244 (376) -2% (3) 0% NOI After Depreciation (3,699) (6,982) (29,013) (26,859) (8,703) (2,154) -8% (22,031) -316% 68 Cruise Q4 Financials Fav (UnFav) Incr (Decr) 2019 YTD 2020 YTD 2020 YTD 2020 YTD Change from Variance from Budget Budget Variance 2019 $ in 000's Actual Actual Revised Budget Approved Budget $ % $ % Revenue $2.1M lower due to no cruise T-91 & Bell St Cruise Operations 22,332 3,796 5,880 26,233 (2,084) -35% (18,536) -83% season Bell Street Vessel Operations 78 28 28 28 (0) -1% (50) -64% $3.3M lease reserve, $1.4M capital to Total Revenue 22,410 3,824 5,909 26,261 (2,085) -35% (18,586) -83% operating expense due to New Cruise Expenses Maritime (Excl. Maint) 3,771 8,521 5,304 5,825 (3,217) -61% 4,750 126% Terminal pause Economic Development 409 396 440 461 44 10% (13) -3% Total Direct 4,180 8,917 5,744 6,286 (3,173) -55% 4,737 113% Variance from 2019 Revenue $18.6M lower at T91 and P66 Maintenance Expenses 2,871 2,596 2,683 2,941 87 3% (275) -10% Envir Services & Planning 479 778 523 640 (254) -49% 299 62% due to no cruise calls in 2020 Seaport Project Management 64 877 104 112 (773) -742% 813 1272% ~$1.9 NWSA lease payment in 2020 Total Support Services 3,414 4,251 3,311 3,693 (940) -28% 837 25% IT 608 707 719 719 11 2% 100 16% COVID-19 Impact to 2020 Police Expenses 1,219 963 1,036 1,041 73 7% (256) -21% Revenue significantly impacted due to External Relations 462 383 557 598 174 31% (79) -17% no 2020 cruise season Other Central Services 1,917 2,333 2,102 2,258 (231) -11% 415 22% Reduction in travel expenses and Port Aviation Division / Other 96 111 128 91 18 14% 15 16% Total Central Services / Other 4,302 4,497 4,542 4,707 44 1% 195 5% Valet to mitigate revenue impacts Total Expense 11,896 17,665 13,597 14,686 (4,069) -30% 5,769 48% NOI Before Depreciation 10,514 (13,841) (7,688) 11,575 (6,154) -80% (24,355) -232% Depreciation 6,212 6,060 5,885 5,884 (175) -3% (152) -2% NOI After Depreciation 4,301 (19,902) (13,573) 5,691 (6,329) -47% (24,203) -563% 69 Recreational Boating Q4 Financials Fav (UnFav) Revis ed Inc (Dec) 2019 2020 Year-to-Date Budget Variance Change from 2019 Variance from Revised Budget Revisde Revenue $750K lower due to lower guest $ in 000's Actual Actual B udg e t $ % $ % moorage occupancy as we expected at SBM and Berthage and Moorage & Concession Services 11,483 11,604 12,331 (727) -6% 121 1% Utility Sales Revenue 489 504 498 6 1% 14 3% BHM partially related to COVID-19 business Other Service Revenue 425 399 431 (31) -7% (25) -6% disruptions as well as processing delays Other 86 103 101 2 2% 17 20% Operation expenses ~($32K) unfavorable to the Total Revenue 12,484 12,611 13,361 (750) -6% 127 1% Expenses revised budgeted in YTD contributed by $269K Maritime (excl Maint) 4,160 4,416 4,696 280 6% 255 6% favorable in Maritime direct charges, $189K Economic Development 223 309 298 (11) -4% 86 38% favorable in Central Services due to lower Total Direct 4,384 4,725 4,993 269 5% 341 8% allocation, and offset by ($489K) unfavorable in Maintenance Expenses 2,584 2,703 2,272 (430) -19% 119 5% Envir Services & Planning 421 372 363 (9) -3% (49) -12% Support Service Seaport Project Management 49 114 64 (50) -78% 65 132% Variance from 2019 Total Suport Service 3,054 3,188 2,699 (489) -18% 134 4% Revenue $127K higher due to 5% rate increase IT 766 762 769 7 1% (3) 0% Police Expenses 944 690 742 52 7% (254) -27% in 2020, offset by lower occupancy from 2019 External Relations 358 273 301 28 9% (85) -24% Operation expenses ~($6K) decrease in 2020 Other Central Services 1,593 1,447 1,540 92 6% (145) -9% due to by $255K increase in Maritime (excluding Aviation Division/Other 60 67 77 10 13% 7 11% Total Central Services/Other 3,721 3,240 3,428 189 6% (481) -13% Maintenance) expenses, $134K increase in Total Expense 11,159 11,153 11,121 (32) 0% (6) 0% Support Service, and offset by ($481K) decrease NOI Before Depreciation 1,325 1,458 2,240 782 35% 133 10% in Central Services Depreciation 2,763 2,874 2,910 35 1% 112 4% COVID-19 Impact to 2020 NOI After Depreciation (1,438) (1,416) (669) (747) 112% 21 -1% Revenue was reduced due to event cancellations and reduced demand for slips Includes Shilshole Bay Marina, Bell Harbor Marina, and Harbor Island Marina. 70 Ship Canal Fishing & Ops Q4 Financials Fav (UnFav) Revis ed Inc (Dec) 2019 2020 Year-to-Date Variance from Budget Budget Variance Change from 2019 Revisde Revenue $440K higher than the revised budget $ in 000's Actual Actual B udg e t $ % $ % primarily due to Derelict Vessels project payments, as Berthage and Moorage & Concession Services 3,483 3,859 3,708 152 4% 376 11% well as Ballard Lock closures by the US Army Corps Space Rental 234 186 298 (112) -38% (47) -20% Engineers (February April & October - December) Utility Sales Revenue 74 117 83 34 41% 43 58% Other 138 542 174 367 211% 403 292% Operation expenses ~$94K favorable to the revised Total Revenue 3,929 4,704 4,264 440 10% 775 20% budgeted YTD contributed by $399K favorable in Expenses Maritime direct charges, $94K favorable in Central Maritime (excl Maint) 2,844 2,615 3,000 385 13% (229) -8% Services due to lower allocation, and offset by ($479K) Economic Development 44 51 65 14 21% 7 17% Total Direct 2,888 2,666 3,065 399 13% (221) -8% unfavorable in Support Services mainly related to Derelict Vessels project expense Maintenance Expenses 1,698 1,903 1,857 (47) -3% 205 12% Envir Services & Planning 245 653 215 (439) -204% 408 166% Variance from 2019 Seaport Project Management 13 42 48 6 13% 29 224% Revenue $775K or 20% higher due to Derelict Vessels Total Suport Service 1,957 2,599 2,120 (479) -23% 642 33% project payments, 5% rate increase in 2020, and a IT 335 350 354 4 1% 15 5% better performance in moorage related to Ballard Lock Police Expenses 405 270 291 20 7% (134) -33% External Relations 153 107 118 11 9% (46) -30% closures from Feb to April and Oct to Dec Other Central Services 682 573 629 56 9% (108) -16% Operation expenses ~$149K increase in 2020 related to Aviation Division/Other 21 23 26 3 11% 2 9% $642K increase in Support Service, and offset by Total Central Services/Other 1,596 1,324 1,418 94 7% (272) -17% ($225K) decrease in Central Services allocation and Total Expense 6,440 6,589 6,603 14 0% 149 2% ($221K) decrease in Maritime direct charges NOI Before Depreciation (2,512) (1,886) (2,340) 454 -19% 626 -25% Depreciation 2,185 2,320 2,136 (184) -9% 135 6% COVID-19 Impact to 2020 NOI After Depreciation (4,697) (4,205) (4,475) 270 -6% 492 -10% Expense projects either delayed or cancelled Includes Fishermen's Terminal, Maritime Industrial Center, and Salmon Bay Marina. 71 Elliott Bay Fishing & Commercial Ops Q4 Financials Fav (UnFav) Revis ed Inc (Dec) 2019 2020 Year-to-Date Variance from Budget Budget Variance Change from 2019 Revisde Revenue $633K or 12% favorable primarily due to new $ in 000's Actual Actual B udg e t $ % $ % agreement with Golden Alaska Seafood and more Berthage and Moorage & Dockage 3,588 3,366 2,514 852 34% (222) -6% dockage fees due to COVID-19 and Ballard Lock closure, Space Rental 1,619 1,558 1,776 (218) -12% (61) -4% Utility Sales Revenue 548 533 511 21 4% (16) -3% partially offset by events cancellations due to COVID-19. Other 340 295 317 (22) -7% (45) -13% Operation expenses ~$973K favorable to the budgeted Total Revenue 6,095 5,752 5,119 633 12% (344) -6% YTD related to $313K favorable in Utilities expenses, Expenses Maritime (excl Maint) 2,406 2,210 2,753 543 20% (196) -8% $276K favorable in Maintenance expenses Economic Development 99 145 172 27 16% 47 47% Variance from 2019 Total Direct 2,504 2,355 2,925 570 19% (149) -6% Revenue $344K or 6% lower primarily due to 680' Ocean Maintenance Expenses 1,353 1,454 1,730 276 16% 101 7% Envir Services & Planning 191 187 225 38 17% (4) -2% phoenix left in Q3 2019 and replaced by new lease Seaport Project Management 10 44 35 (8) -24% 33 321% agreement with 305' Golden Alaska in 2020, as well as Total Suport Service 1,555 1,684 1,990 306 15% 129 8% 2019 had project related moorage, like EBM floats and IT 267 376 377 0 0% 110 41% Pacific Legacy. Police Expenses 373 380 408 29 7% 6 2% External Relations 142 149 164 15 9% 7 5% Operation expenses ~$332K increase in 2020 Other Central Services 606 824 872 48 6% 218 36% contributed by higher allocation expenses from Central Aviation Division/Other 20 31 36 6 16% 11 57% Services. Total Central Services/Other 1,408 1,759 1,857 98 5% 352 25% COVID-19 Impact to 2020 Total Expense 5,466 5,798 6,772 973 14% 332 6% NOI Before Depreciation 629 (47) (1,653) 1,606 -97% (676) -107% Terminal 91 getting more dockage requests than normal Depreciation 3,341 3,323 3,299 (23) -1% (18) -1% Expense projects either delayed or cancelled NOI After Depreciation (2,712) (3,369) (4,952) 1,583 -32% (658) 24% Includes Terminal 91 (waterside non-Cruise), Terminal 46 Docks, Kellogg Island, Terminal 25, Terminal 18 Dolphins, Pier 69 Vessels, Pier 28 Docks, Pier 34 Dolphins, Pier 2 Docks, and Terminal 108 Moorage. 72 Maritime Portfolio Management Q4 Financials Fav (UnFav) Revised Incr/(Decr) Variance from Revised Budget 2019 YTD 2020 Year-to-Date Budget Variance Change from 2019 Revenue $355K unfavorable to revised Revised $ in 000's Actual Actual Budge t $ % $ % budget due to lower than anticipated Marina Office & Retail 3,706 3,601 3,933 (332) -8% (104) -3% utility sales and concession rents Maritime Industrial 4,132 4,335 3,959 375 9% 203 5% partially offset by higher than anticipated Utilities 2,270 2,138 2,536 (398) -16% (132) -6% space rental revenue mainly from Lineage Total Revenue 10,108 10,074 10,428 (355) -3% (34) 0% Expenses $349K lower than revised PM Direct 3,313 3,931 3,934 3 0% 618 19% EDD PM Direct 248 288 344 57 20% 40 16% budget due to favorable utilities and EDD Other 608 458 320 (139) -30% (150) -25% maintenance expenses. MD Direct 414 474 438 (36) -8% 60 15% Total Direct 4,584 5,152 5,036 (115) -2% 568 12% Variance from 2019 Maintenance Expenses 3,134 2,914 3,214 300 10% (220) -7% Enviromental & Sustainability 355 263 302 39 15% (93) -26% Revenue down $34K due to lower than Seaport Project Management 25 48 58 10 22% 23 92% prior year utility sales. Total Support Services 3,514 3,225 3,574 349 11% (289) -8% Expenses down $70K due to lower than Police Expenses 894 647 696 49 8% (247) -28% prior year utilities and maintenance Other Corp Expenses 2,447 2,345 2,411 66 3% (102) -4% expense. Total Central Services/Other 3,341 2,992 3,107 115 4% (349) -10% Total Expense 11,438 11,368 11,717 349 3% (70) -1% NOI Before Depreciation (1,331) (1,294) (1,289) (6) 0% 36 3% COVID-19 Impact to 2020 Depreciation 2,560 2,503 2,480 (23) -1% (57) -2% Expense projects either delayed or NOI After Depreciation (3,891) (3,797) (3,768) (29) -1% 93 2% cancelled. Includes uplands of Shilshole Bay Marina, Terminal 91 (Industrial), Fishermen's Terminal, Maritime Industrial Center, Salmon Bay Marina, T-115, T-108, and T-106. 73 Grain Terminal Q4 Financials Fav (UnFav) Incr (Decr) Variance from Budget 2019 2020 2020 2020 Actual vs. Revised Change from 2019 Revised Appr ove d Budget Variance Revenue higher than budget with $ in 000's Actual Actual B udg e t B udg e t $ % $ % greater demand for feedstock from Lease Revnue 4,266 5,142 3,490 3,490 1,652 47% 876 21% Total Revenue 4,266 5,142 3,490 3,490 1,652 47% 876 21% China. Expenses Expenses lower than budget due to Maritime (Excl. Maint) 157 199 218 234 19 9% 42 26% Economic Development 43 51 53 55 1 3% 8 19% organizational cost cutting initiatives. Total Direct 201 250 271 289 21 8% 50 25% Maintenance Expenses 436 365 642 642 277 43% (71) -16% Variance from 2019 Envir Services & Planning 97 75 86 107 11 13% (21) -22% Grain Volumes increased 836K metric Seaport Project Management 7 11 10 11 (1) -15% 4 59% Total Support Services 540 451 738 760 286 39% (89) -16% tons (25%) from 2019. IT 106 104 103 103 (1) -1% (2) -2% Police Expenses 289 181 195 196 14 7% (108) -37% External Relations 109 71 78 86 7 9% (38) -35% Other Central Services 441 372 404 433 32 8% (69) -16% Aviation Division / Other 14 12 17 10 5 28% (2) -13% Total Central Services / Othe r 960 740 797 827 57 7% (220) -23% Total Expense 1,700 1,442 1,806 1,877 364 20% (258) -15% NOI Before Depreciation 2,566 3,700 1,684 1,614 2,016 120% 1,134 44% Depreciation 552 530 526 525 (5) -1% (22) -4% NOI After Depreciation 2,014 3,170 1,159 1,088 2,011 174% 1,156 57% 74 Maritime Capital 2020 2020 Budget Variance T117 Restoration costs moved forward with 2020 Revised Actual $ % expedited schedule from contactor. $ in 000's Budge t SBM Restrms/Service Bldgs Rep 8,867 9,400 533 6% SBM Restrooms/Buildings - Foundation work T117 Restoration 5,885 5,000 (885) -18% completed, reducing amount of project contingency. MD Small Projects 964 3,099 2,135 69% SBM Paving 1,636 1,810 174 10% T91 Northwest Fender Construction moved from Q4 MD Fleet 949 1,957 1,008 52% 2020 to Q3 2021 based on operational concerns. New Cruise Terminal (1,107) 1,259 2,366 188% T91 Northwest Fender 98 785 687 88% T91 Berth 6&8 Design contract execution in Q4 2020 FT Gateway Building 17 700 683 98% resulted in design start later than planned last year. FT Maritime Innovation Center 663 700 37 5% FT Docs 3,4,5 Fixed Pier 528 510 (18) -4% All Other Projects 1,198 (5,508) (6,706) 122% New Cruise Terminal project placed on hold. Will be Total Maritime 19,698 19,712 14 0% evaluating post-COVID-19 effects on cruise. 75 Maritime 2021 Capital Spending 2021 POF 2021 APV Change T91 Berths 6 & 8 Redevelopment 1,200 1,025 (175) T117 Restoration 7,687 8,809 1,122 P66 Shore Power 950 765 (185) Other Capital Projects 23,348 22,588 (760) Subtotal - Capital Projects 33,185 33,187 2 CIP Reserves 2,000 263 (1,737) Subtotal 35,185 33,450 (1,735) CIP Cash Management Reserve (8,805) (7,255) 1,550 Total Proposed CIP 26,380 26,195 (185) 76 Economic Development Division Appendix 2020 Financial Performance Report EDD 2020 Financial Detail Fav (UnFav) Incr (Decr) Variance from Revised Budget 2018 2019 2020 2020 2020 Actual vs. Revised Change from 2019 Revised Appr ove d Budget Variance Revenue unfavorable to revised $ in 000's Actual Actual Actual B udg e t B udg e t $ % $ % budget due to Conference & Events Revenue 9,002 8,912 7,808 8,824 9,124 (1,017) -12% (1,105) -12% Conf & Event Centers 11,703 12,239 1,662 6,833 9,985 (5,171) -76% (10,577) -86% Centers' revenue and Bell Street Total Revenue 20,705 21,151 9,470 15,658 19,110 (6,188) -40% (11,681) -55% Garage. Expenses Expenses lower than revised budget Portfolio Management 3,571 3,732 3,073 3,988 4,008 915 23% (659) -18% Conf & Event Centers 9,889 10,218 4,440 6,703 8,902 2,264 34% (5,779) -57% due to variable conference center P69 Facilities Expenses 235 215 232 226 230 (6) -3% 17 8% costs, favorable pension adjustment, RE Dev & Planning 149 136 209 145 208 (64) -44% 73 53% and deferred Washington Tourism EconDev Expenses Other 785 930 938 632 932 (306) -48% 8 1% Maintenance Expenses 3,914 3,145 3,042 3,476 3,819 434 12% (104) -3% Alliance spend. Maritime Expenses (Excl Maint) 281 253 442 512 524 70 14% 189 75% Total EDD & Maritime Expenses 18,824 18,630 12,376 15,682 18,624 3,306 21% (6,254) -34% Diversity in Contracting 132 152 103 151 197 48 32% (49) -32% Variance from 2019 Tourism 1,408 1,337 954 2,842 1,536 1,888 66% (384) -29% Bell Harbor International Conference EDD Grants 838 785 778 1,110 1,110 332 30% (7) -1% Center (BHICC) revenue significantly Total EDD Initiatives 2,378 2,274 1,834 4,103 2,843 2,269 55% (440) -19% Environmental & Sustainability 281 344 211 260 323 49 19% (133) -39% declined due to COVID-19 and Police Expenses (76) 61 64 232 233 168 73% 3 5% construction. Other Central Services 5,466 5,731 5,965 6,752 7,223 787 12% 234 4% Aviation Division 155 114 161 193 123 32 16% 47 41% Parking Revenues down from office Total Central Services & Aviation 5,825 6,251 6,401 7,437 7,901 1,036 14% 150 2% closures, Clipper & Cruise shutdown, Envir Remed Liability 0 0 0 0 0 0 NA 0 NA and general lower downtown traffic. Total Expense 27,028 27,155 20,611 27,222 29,368 6,611 24% (6,544) -24% NOI Before Depreciation (6,323) (6,004) (11,141) (11,564) (10,258) 423 4% (5,138) -86% Expenses down from BHICC volumes. Depreciation 3,948 3,647 3,611 3,392 3,389 (220) -6% (35) -1% NOI After Depreciation (10,271) (9,651) (14,753) (14,956) (13,647) 203 1% (5,102) -53% 78 Portfolio Management Q4 Financials Fav (UnFav) Revised Incr (Decr) Variance from Revised Budget 2019 YTD 2020 Year-to-Date Budget Variance Change from 2019 Revenue unfavorable to revised budget due to Revised $ in 000's Actual Actual Budge t $ % $ % Conference & Events Centers' revenue decline as a Central Harbor 7,312 6,143 7,281 (1,138) -16% (1,169) -19% result of COVID-19 social distancing requirements T-91 Uplands 1,587 1,648 1,512 136 9% 61 4% and on-going operational restrictions. Conference & Events Centers 12,239 1,662 6,833 (5,171) -76% (10,577) -636% Expenses lower than revised budget due to favorable Foreign Trade Zone 35 30 30 0 0% (5) -17% Total Revenue 21,173 9,483 15,656 (6,173) -39% (11,689) -123% maintenance expenses and lower BHICC volumes. PM Outside Services 623 406 810 404 50% (217) -53% PM Direct 13,327 7,106 9,881 2,775 28% (6,221) -88% Variance from 2019 EDD Other 1,434 1,472 1,322 (150) -11% 38 3% Bell Harbor International Conference Center (BHICC) MD Direct 192 341 445 103 23% 149 44% Total Direct 15,575 9,326 12,458 3,132 25% (6,250) -67% revenue significantly declined due to COVID-19 Maintenance Expenses 3,144 3,041 3,474 433 12% (103) -3% social distancing requirements between March 13 Enviromental & Sustainability 320 181 229 48 21% (139) -77% and June 30. Closing ala carte lunch service and Seaport Project Management 61 117 68 (50) -73% 56 48% event space at WTC Seattle. Total Support Services 3,525 3,339 3,770 432 11% (186) -6% Police Expenses 82 215 232 17 7% 133 62% Expenses down from BHICC volumes. Other Corp Expenses 5,115 5,312 5,601 289 5% 197 4% Total Central Services/Other 5,197 5,527 5,833 306 5% 331 6% COVID-19 Impact to 2020 Total Expense 24,297 18,192 22,061 3,870 18% (6,105) -34% BHICC events initially rescheduled into 3rd & 4th NOI Before Depreciation (3,124) (8,708) (6,405) (2,303) -36% (5,584) 64% Depreciation 3,642 3,608 3,389 (219) -6% (34) -1% quarter continue to get cancelled and rescheduled NOI After Depreciation (6,767) (12,316) (9,794) (2,522) -26% (5,550) 45% due to the longer than expected re-opening. Expense projects either delayed or cancelled. Includes non-alliance & upland real-estate at Tsubota, T-91 (General), T-86, P-69, Bell Street Garage, Smith Cove Conference Center, Bell Harbor International Conference Center, World Trade Center, Foreign Trade Zone, Pier 2, T-34, and T-102. 79 EDD Capital 2020 2020 Budget Variance 2020 T-91 Upland Development Unanticipated Revised Actual $ in 000's $ % delays in the finalization of the design Budge t BHICC Interior Modernization 7,483 8,358 875 10% contract. Tenant Improvements -Capital 0 1,150 1,150 100% EDD Small Projects 467 541 74 14% BHICC Modernization Completed initial T91 Uplands Dev Phase 1 325 1,000 675 68% scope. Project has encountered unforeseen EDD Reserve 0 54 54 100% site conditions, additional effort required to P66 HVAC Systems Upgrade 380 912 532 58% execute change orders. CW Bridge Elev Modernization 185 350 165 47% WTC HVAC Replacement 277 260 (17) -7% EDD Technology Projects 0 0 0 NA P66 HVAC Transition from Maintenance to P69 Underdock Utility Rpl 109 0 (109) NA SPM was delayed until October 5th 2020. All Other Projects 88 (1,926) (2,014) 105% Cost in 2020 delayed due to building Total Economic Development 9,314 10,699 1,385 13% engineering system method of procurement which requires an RFP to be developed. 80 EDD 2021 Capital Spending 2021 POF 2021 APV Change T91 Uplands Development Phase I 800 800 - Other Capital Projects 7,640 6,702 (938) Subtotal - Capital Projects 8,440 7,502 (938) CIP Reserves 1,000 - (1,000) Subtotal 9,440 7,502 (1,938) CIP Cash Management Reserve (3,566) (1,855) 1,711 Total Proposed CIP 5,874 5,647 (227) 81 Central Services Appendix 2020 Financial Performance Report Central Service Financial Summary Fav (UnFav) Incr (Decr) 2018 2019 2020 2020 2020 Actual vs. Revised Change from 2019 Revised Approve d Budget Variance $ in 000's Actual Actual Actual Budge t Budge t $ % $ % Total Operating Revenues (500) 1,282 2,927 40 40 2,887 7218.3% 1,645 128.3% Core Central Support Services 74,419 79,276 84,705 91,594 93,604 6,889 7.5% 5,429 6.8% P olic e 23,908 27,793 27,538 31,312 31,444 3,774 12.1% (255) -0.9% Capital Development 8,999 10,038 9,096 8,611 12,513 (485) -5.6% (942) -9.4% Environment & Sustainability 8,770 10,748 10,433 10,399 12,866 (33) -0.3% (315) -2.9% Total Operating Expenses 116,097 127,855 131,772 141,916 150,427 10,144 7.1% 3,917 3.1% 83 Central Services Expense by Category Fav (UnFav) Incr (Decr) 2018 2019 2020 2020 2020 Actual vs. Revised Change from 2019 Revised Approve d Budget Variance $ in 000's Actual Actual Actual Budge t Budge t $ % $ % Salaries & Benefits 71,935 76,259 81,576 82,709 84,406 1,134 1.4% 5,317 7.0% Wages & Benefits 16,551 19,652 19,048 30,426 30,426 11,378 37.4% (604) -3.1% Payroll to Capital Projects 17,571 17,677 18,430 19,590 21,596 1,160 5.9% 752 4.3% Equipment Expense 3,985 2,994 2,260 2,155 2,568 (105) -4.9% (734) -24.5% Supplies & Stock 1,261 1,493 942 1,279 1,415 337 26.4% (551) -36.9% Outside Services 27,754 31,413 36,004 35,752 39,095 (252) -0.7% 4,591 14.6% Travel & Other Employee Expenses 2,425 2,741 1,517 1,892 3,585 375 19.8% (1,224) -44.6% Insurance Expense 2,145 2,276 2,550 2,307 2,307 (243) -10.6% 274 12.0% Litigated Injuries & Damages (82) - 719 - - (719) 0.0% 719 0.0% Other Expenses 2,274 4,169 3,386 3,359 4,097 (27) -0.8% (783) -18.8% Charges to Capital Projects/Overhead Alloc (29,722) (30,819) (34,660) (37,553) (39,068) (2,893) 7.7% (3,841) 12.5% TOTAL 116,097 127,855 131,772 141,916 150,427 10,144 7.1% 3,917 3.1% Payroll savings due to Staff vacancies/hiring freeze. Wages favorable due to lower Overtime for Police due to cancellation of cruise season and vacancies. DRS Pension True-up of $9.4M in 2020. Charge to Capital unfavorable to budget due to delay of Capital Projects. 84 Central Services Capital Spending 2020 2020 Actual/Rvsd Budget Revised $ % $ in 000's Actual Budge t Infrastructure - Small Cap 1,179 2,100 921 56.1% Services Tech - Small Cap 1,721 1,350 (371) 127.5% Radio System Upgrade 532 3,687 3,155 14.4% New Budget System 302 583 281 51.8% Regional Workforce Tracking - 500 500 0.0% Learning Management System - 400 400 0.0% Maximo Upgrade 289 462 173 62.6% Phone System Upgrade 60 900 840 6.7% Customer Relationship Mgmt 1,015 1,400 385 72.5% CDD Fleet Replacement 502 1,644 1,142 30.5% Corporate Fleet Replacement 243 1,065 822 22.8% CIP Cashflow Adjustment - (3,000) (3,000) 0.0% Other (note 1) 504 1,600 1,096 31.5% TOTAL 6,347 12,691 6,344 50.0% Note: (1) "Other" includes remaining ICT projects and small capital projects/acquisitions. 85 Portwide Appendix 2020 Financial Performance Report Portwide Financial Summary Fav (UnFav) Incr (Decr) 2018 2019 2020 2020 2020 Actual vs. Revised Change from 2019 Revised Approve d Budget Variance $ in 000's Actual Actual Actual Budge t Budge t $ % $ % Aeronautical Revenues 291,268 357,598 297,909 401,342 401,342 (103,433) -25.8% (59,689) -16.7% Airport Non-Aero Revenues 257,707 269,037 116,473 135,074 283,167 (18,601) -13.8% (152,564) -56.7% Non-Airport Revenues 140,415 137,538 96,446 103,302 127,106 (6,856) -6.6% (41,093) -29.9% Total Operating Revenues 689,390 764,174 510,828 639,717 811,616 (128,890) -20.1% (253,346) -33.2% Total Operating Expenses 397,638 443,089 411,954 438,081 469,769 26,127 6.0% (31,136) -7.0% NOI before Depreciation 291,752 321,085 98,874 201,637 341,847 (102,763) -51.0% (222,211) -69.2% Depreciation 164,362 174,971 179,807 179,056 179,056 (751) -0.4% 4,836 2.8% NOI after Depreciation 127,390 146,114 (80,933) 22,581 162,791 (103,514) -458.4% (227,047) -155.4% 87 Non-Airport Financial Summary Fav (UnFav) Incr (Decr) 2018 2019 2020 2020 2020 Actual vs. Revised Change from 2019 Revised Approve d Budget Variance $ in 000's Actual Actual Actual Budge t Budge t $ % $ % NWSA Distributable Revenue 55,992 47,979 38,782 41,935 41,935 (3,153) -7.5% (9,197) -19.2% Maritime Revenues 57,575 59,289 42,111 42,585 62,938 (474) -1.1% (17,178) -29.0% EDD Revenues 20,705 21,151 9,470 15,658 19,110 (6,188) -39.5% (11,681) -55.2% SWU & Other 6,143 9,119 6,083 3,123 3,123 2,960 94.8% (3,036) -33.3% Total Operating Revenues 140,415 137,538 96,446 103,302 127,106 (6,856) -6.6% (41,093) -29.9% Total Operating Expenses 78,789 86,455 82,274 89,254 92,463 6,981 7.8% (4,181) -4.8% NOI before Depreciation 61,626 51,084 14,172 14,047 34,643 125 0.9% (36,912) -72.3% Depreciation 40,159 38,737 37,674 37,062 37,095 (613) -1.7% (1,063) -2.7% NOI after Depreciation 21,467 12,347 (23,502) (23,014) (2,451) (488) 2.1% (35,849) -290.4% Non-Airport Operating Revenue lower than budget by $6.9M due to less revenues from Cruise, Conference & Event Centers, and NWSA Distributable Revenues, partially offset by unbudgeted Police Revenues. Expenses $7M lower than budget due cost savings measures which include hiring freeze, delay in implementing program initiatives, cutting travel and other employee expenses, and DRS Pension True-up credits. 88 Portwide Operating Revenues Summary Fav (UnFav) Incr (Decr) 2018 2019 2020 2020 2020 Actual vs. Revised Change from 2019 Revised Approve d Budget Variance $ in 000's Actual Actual Actual Budge t Budge t $ % $ % Aeronautical Revenues 291,268 357,598 297,909 401,342 401,342 (103,433) -25.8% (59,689) -16.7% - - - - Public Parking 80,212 82,125 34,502 40,813 89,485 (6,311) -15.5% (47,623) -58.0% Rental Cars - Operations 37,306 36,793 16,637 19,209 37,363 (2,572) -13.4% (20,157) -54.8% Rental Cars - Operating CFC 16,263 15,773 - - 13,786 - 0.0% (15,773) -100.0% ADR & Terminal Leased Space 64,323 68,013 31,234 32,905 71,845 (1,670) -5.1% (36,778) -54.1% Ground Transportation 18,772 20,765 6,557 11,092 22,299 (4,535) -40.9% (14,208) -68.4% Employee Parking 10,269 10,438 8,848 5,100 10,137 3,748 73.5% (1,590) -15.2% Airport Commercial Properties 15,434 15,773 10,766 11,854 16,660 (1,089) -9.2% (5,007) -31.7% Airport Utilities 7,206 7,431 5,672 8,831 8,831 (3,159) -35.8% (1,759) -23.7% Clubs and Lounges 6,802 10,274 2,043 4,441 10,536 (2,398) -54.0% (8,230) -80.1% Cruise 18,880 22,410 3,824 5,909 26,261 (2,085) -35.3% (18,586) -82.9% Recreational Boating 12,035 12,484 12,611 13,361 13,361 (750) -5.6% 127 1.0% Fishing & Operations 10,257 10,024 10,456 9,386 9,386 1,069 11.4% 432 4.3% Gra in 5,167 4,266 5,142 3,490 3,490 1,652 47.3% 876 20.5% Maritime Portfolio Management 11,305 10,108 10,074 10,428 10,428 (355) -3.4% (34) -0.3% Central Harbor Management 9,018 8,899 7,791 8,793 9,093 (1,001) -11.4% (1,108) -12.4% Conference & Event Centers 11,703 12,239 1,662 6,833 9,985 (5,171) -75.7% (10,577) -86.4% NWSA Distributable Revenue 55,992 47,979 38,782 41,935 41,935 (3,153) -7.5% (9,197) -19.2% Other 7,177 10,783 6,318 3,995 5,390 2,323 58.2% (4,466) -41.4% Total Operating Revenues (w/o Aero) 398,122 406,576 212,919 238,375 410,274 (25,457) -10.7% (193,657) -47.6% TOTAL 689,390 764,174 510,828 639,717 811,616 (128,890) -20.1% (253,346) -33.2% 89 Portwide Operating Expense Summary Fav (UnFav) Incr (Decr) 2018 2019 2020 2020 2020 Actual vs. Revised Change from 2019 Revised Approve d Budget Variance $ in 000's Actual Actual Actual Budge t Budge t $ % $ % Salaries & Benefits 127,056 137,052 147,623 148,368 152,358 744 0.5% 10,572 7.7% Wages & Benefits 108,379 119,942 119,831 134,877 134,819 15,047 11.2% (112) -0.1% Payroll to Capital Projects 28,329 27,844 29,759 34,529 37,330 4,770 13.8% 1,915 6.9% Outside Services 99,673 107,188 103,637 114,501 126,169 10,864 9.5% (3,551) -3.3% Utilitie s 25,552 25,838 22,017 28,491 29,036 6,473 22.7% (3,821) -14.8% Equipment Expense 10,621 11,869 10,331 7,944 9,970 (2,387) -30.1% (1,537) -13.0% Supplies & Stock 10,780 11,200 9,894 9,990 9,082 95 1.0% (1,306) -11.7% Travel & Other Employee Expenses 4,837 5,461 2,764 3,752 7,029 988 26.3% (2,697) -49.4% Third Party Mgmt Op Exp 11,660 13,329 5,201 8,494 12,699 3,293 38.8% (8,128) -61.0% B&O Taxes 4,488 4,859 3,332 3,949 5,007 616 15.6% (1,527) -31.4% Other Expenses 19,391 33,154 15,078 11,959 17,105 (3,119) -26.1% (18,076) -54.5% Charges to Capital Projects/Overhead Alloc (53,130) (54,647) (57,515) (68,772) (70,835) (11,257) 16.4% (2,867) 5.2% TOTAL 397,638 443,089 411,954 438,081 469,769 26,127 6.0% (31,136) -7.0% Payroll expenses were $20.6M below budget primarily due to DRS Pension Plan True-up credit of $17.2M, hiring freeze offset by higher Maintenance wages and new Police contracts paying out Holiday pay in January instead of December. Outside Services were $10.9M favorable to budget due to project delays related to COVID-19 cost-reduction measures. Travel & Other Employee Expenses were $988K lower than budget due to cutting/eliminating non-essential business travel and training. Other Expenses were $3.1M higher than budget mainly due to unbudgeted Litigated Injuries & Damages and Bad Debt Expense offset by Environmental Remediation Liability. 90 Portwide Capital Spending Summary 2020 2020 Budget Variance YTD Revised $ % $ in 000's Actual Budge t Aviation 504,073 489,182 (14,891) -3.0% Maritime 19,698 19,712 14 0.1% Economic Development 9,314 10,699 1,385 12.9% Central Services & Other (note 1) 6,984 15,991 9,007 56.3% TOTAL 540,069 535,584 (4,485) -0.8% Note: (1) "Other" includes 100% Port legacy projects in the North Harbor and Storm Water Utility Small Capital projects 91
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