11a. Presentation
2021 Financial Performance Briefing
Item No. 11a_supp Meeting Date: March 8, 2022 Port of Seattle 2021 Financial Performance Report Key Highlights • Prudent budgeting and careful cost management positioned the Port well for 2021 despite the major disruption caused by the pandemic • 2021 SEA passenger levels were in line with budget (30% lower than 2019) • Federal relief funds have improved the financial outlook for the Aviation division • Cruise line of business safely hosted 82 ship calls and approximately 229,000 revenue passengers between July and October • Operating expenses were significant below budget mainly due to a $57.7M noncash expense credit related accounting for the Port's public pension plans through the Department of Retirement Systems (DRS). Without the credit, operating expenses were just $1.0M under budget. • There was also a $5.4 million non-cash operating revenue reduction related to accounting for the LEOFF 2 (law enforcement/fire fighters) pension plan • Many tables exclude the pension expense credit for greater transparency of actual performance 2 Aviation Division 2021 Financial Performance Report Passenger Growth Rebounding by Month for 2021 vs 2019 Passengers (millions) 2019 Actual 51.7 2020 Actual 20.1 2021 Budget 36.4 2021 Actual 36.1 29.6% compared to 2019 4 Federal Relief Grants Strengthen Financial Performance Actual Budget Total O&M Expense NOI 317,513 183,819 501,332 341,679 (47,462) 294,217 207,114 386,668 189,548 576,215 339,908 339,908 236,308 (69,155) (5,729) (74,884) (1,771) 47,462 45,691 (29,193) Federal Relief Federal Relief (Concessions) NOI (After Federal Relief) 95,065 5,355 307,534 37,899 274,207 57,166 5,355 33,327 Key Measures Non-Aero NOI (in $000s) CPE ($) Debt Service Coverage 93,175 15.94 1.69 82,742 19.62 1.36 10,433 3.67 0.33 Other Information ADF Balance 341M 340M 1M 389,051 491,202 102,151 Figures in $000s Revenues Aeronautical Non-Aeronautical Total Revenues O&M Expense Pension Credit Capital Spending (in $000s) 2021 2021 Variance Business Highlights • Q4 passenger growth reduced due to delta variant: 30% lower than 2019 • Achieved primary financial goals • Two factors greatly impacted 2021: – Additional federal relief – Pension net credit of $42.7 million: • Expense: credit of $47.5 million • Revenue: contra subsidy of -$4.8 million • Due to pension credit, shifted some federal relief grants to 2022 (or 2023) • ARPA concession pass through grant will be claimed in 2022 • Achieved Skytrax 4-star rating for customer service 5 Operating Expenses Summary Note: The Actuals for Operating Expenses includes the DRS Pension Credit $45.7M or 13.4% Favorable Note: The Actuals for Operating Expenses includes the DRS Pension Credit Main driver of under-run is due to the Pension Credit of $47.5M – without the Pension Credit, Payroll costs would have been $5.2M over the budget, driven by over-run in Fire and Maintenance departments. Without the Pension Credit, over-run of approx. $1.8M over-run is mainly due to the snow removal impact in December 2021. 6 Aero Rate Base Revenue Requirements Drivers to lower Aeronautical Revenue are: • Federal Relief $59M to lower Debt Service • Pension Credit of approx. $28M applied to O&M * Airfield Commercial is excluded from Aero Rate Base 7 Aeronautical Revenue Budget $387M 18% Actual $318M Applied $59M of Federal Relief grants and Pension Credit of approx. $28M which lowered revenue requirements (aka costs to recover from Airlines) 8 Non-Aero Revenue Concessions Grant Impact $183.8M includes Concessionaire Relief CRRSAA Grant of $5.4M , and Pension Contra Revenue of $2.8M Federal concessionaire relief grants will be recognized as Non-operating Revenue (means lower operating revenue, but cash neutral) Note: ARPA $21.4M federal Concessionaire Relief grant now expected to fund in 2022. 9 Non-Aeronautical Revenues Most Non-Aero activity closely aligned with PAX volume recovery Budget $189.5M 3% Actual $183.8M Actuals include Concessionaire Relief CRRSAA Grant of $5.4M and Pension Contra Revenue of $2.8M. 10 Strategic use of Federal Relief Grants to Achieve Debt Service Coverage Target Revenues in $000's 2020 Actual 2021 Budget 2021 Actual Variance Aero Non-aero Total Revenues 297,909 116,473 414,382 386,668 189,548 576,216 317,513 183,819 501,332 (69,155) (5,729) (74,884) O&M 329,680 339,908 294,217 45,691 NOI Federal Relief Grants Non-op Concession Rent Relief Grants CFC Excess Other net non-operating 84,702 43,257 5,604 236,308 3,500 2,543 207,115 3,390 5,354 (2,018) 2,925 (29,193) (110) 5,354 (2,018) 382 Available for debt service 133,562 242,351 216,766 (25,585) Debt Service Gross debt service (net of cap i) CFC offset PFC offset Federal Relief Grants DS offset 249,555 (13,601) (36,390) (103,891) 279,880 (19,159) (47,549) (34,399) 288,361 (14,168) (54,076) (91,675) (8,481) (4,991) 6,527 57,276 95,673 178,772 128,442 50,330 1.40 1.36 1.69 0.33 Net Debt Service Debt Service Coverage Note: DS Coverage is "airport only debt service coverage, calculated in accordance with airline agreement". • Aero revenues 2021 actual is lower due to additional CRRSAA and ARPA grants not in the budget. • Non-aero revenues is net after the concession rent relief. • Gross debt service includes CP principal paydown. • Higher PFC offset available from the PFC backed bond refunding to revenue bonds. • Lower CFC offset due to the use of Federal Relief grants to offset RCF debt service. 11 2021 Capital Spending: 79% of Budget $600 ($ in millions) $500 $400 $300 $491.2 NSAT, $96.4 $389.1 IAF, $86.5 NSAT, $73 Checked Bag, $86.1 $200 $100 $0 Others, $192.6 2021 Budget IAF, $57 AFLD Pvmnt 20212025, $29.6 Checked Bag, $98 AFLD Pvmnt 20212025, $24 Others, $138 2021 Actual 12 2021 Airport Development Fund Balance $400 $350 $ in millions $300 $250 $200 $150 $100 $50 $- • 2021 ending balance at $281M $341m, slightly PFC & CFC Offsets above target of $58M CARES Deposit $340M (12 $45M months of O&M) ADF reimbursement in 2021. $43M CRRSAA deposits $40M • Decision to move ARPA Deposits $12.7M ADF reimbursement more of ARPA $70M grant to 2022 CRRSAA deposit $2M ADF Ending upon higher Balance pension credit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Target reducing 2021 airline settlement Actual surplus. Target: $340M $341M 13 Federal Relief Bolstering Key Financial Metrics SEA Grant Summary $ in millions Grants Received: $383.9 CARES CRRSA ARPA $192.1 $37.4 $154.4 *excludes concessions grants 2020 Actual 2021 Actual 2022 Budget Total Airline Benefits 94.3 61.5 71.8 227.5 Non-Airline Benefit ** 52.9 33.5 26.2 112.7 Total Federal Funding Applied $147.1 $95.1 $98.0 $340.2 Cumulative Remaining $45.0 $141.7 $43.7 $43.7 Airline Benefit 64% 36% 65% 35% 73% 27% 67% 33% $103.9 $43.3 $91.7 $3.4 $82.8 $15.2 $278.4 $61.8 21.4 5.4 21.4 $119.4 $410.6 Grants Applied Non-Airline Benefit ** Grant Usage Debt Service O&M Total • Total Federal Relief Grants used in 2021 was $100.4M o $61.5M used to reduce airlines rates and charges o $33.5M used for non-aero debt service o $5.4M reduced concessions billings • 2022 Budget includes: • $98M Federal Relief grants • $21.4M to reduce concessions billings • Remaining $43.7 million can be used in 2022 or 2023 ** Grants are shown after allocations Concessions 5.4 CRRSAA ARPA GRAND TOTAL: COVID RELIEF $147.1 $100.4 14 Seaport 2021 Financial Performance Report Seaport Performance Summary $ in 000's Revenues Maritime Economic Development Division Joint Venture Total Revenue Expenses Maritime Economic Development Division Joint Venture Total Expense *NOI Before Stormwater Utility Stormwater Utility Revenues Stormwater Utility Expenses Stormwater Utility NOI Total Non-Aviation Business NOI *Includes $10M favorable pension adjustments in 2021 Incr (Decr) Change from 2020 Budget Fav (UnFav) Actual vs. Budget Variance $ % $ % 48,331 9,294 54,577 112,202 45,280 13,348 40,825 99,453 3,051 (4,054) 13,752 12,749 7% -30% 34% 13% 6,219 (176) 17,014 23,058 15% -2% 45% 26% 50,228 20,611 1,063 71,902 17,242 40,714 18,164 1,708 60,586 51,615 50,243 21,413 1,377 73,033 26,420 9,529 3,249 (331) 12,446 25,196 19% 15% -24% 17% 95% (9,514) (2,447) 645 (11,315) 34,373 -19% -12% 61% -16% 199% 5,839 5,233 606 6,374 4,740 1,635 6,260 4,544 1,716 6,464 5,958 506 (204) 1,414 1,209 -3% 24% 239% (114) (195) 81 -2% -4% 5% 51,551 18,876 53,331 26,926 26,405 98% 34,454 183% 2019 2020 2021 2021 Actual Actual Actual 59,289 21,151 50,986 131,426 42,111 9,470 37,563 89,144 48,644 27,137 4,699 80,480 50,945 Change from 2020 Budget Variance • • Favorable NWSA Distributable Income of $13.4M & Cruise/Grain/Fishing, unfavorable Conference Revenue. Pension Adjustment – Revenue $0.4M unfavorable, Expenses $10M favorable. • • • • A V-shaped recovery in Cargo. Return of Cruise. Pandemic cost-cutting initiatives. Pension Adjustment - $7M Y/Y. Seaport returning to pre-pandemic results. 16 Maritime Division 2021 Financial Performance Report Maritime Division Business Highlights Financial Summary Figure in $000s Revenues Fishing, Commercial, & Recreational Marinas Cruise Maritime Portfolio Mgmt. Grain / Other Total before Pension Impact Pension Revenue Adjustment Total after Pension Adjustment Actual Budget Variance 22,710 9,517 10,392 6,119 48,738 (408) 48,331 21,559 8,558 10,259 4,903 45,280 0 45,280 1,151 959 133 1,216 3,459 (408) 3,051 O&M Expense Direct Support Services Central Services and Other Total before Pension Impact Pension Expense Adjustment Total after Pension Adjustment 18,510 14,849 14,426 47,784 (7,070) 40,714 20,904 15,028 14,311 50,243 0 50,243 2,394 180 (115) 2,458 7,070 9,529 NOI before Pension Adjustments 954 (4,963) 5,917 NOI after Pension Adjustments 7,616 (4,963) 12,580 Capital Spending 18,923 26,195 7,272 • • • • Fishing, Commercial and Recreational Marinas exceeding revenue goals in the face of COVID. Successful Cruise season with 82 calls and 229K passengers. Grain Volumes up 11% Y/Y. Support Service Groups Completed: – – – – – – – – Waterfront Project Management Transition. Constructed Phase 1 of T5 Berth Modernization (North Berth). Stabilization of T30 Bulkhead completed. Stormwater outfall replacements at T18. First Marine Stormwater Utility Strategic Plan. Port’s first ever Sustainable Fleet Plan. Collection of $3M in grants, insurance, and MOAs. Negotiated 5-year Vessel Coordination Agreement with Suquamish Tribe & Muckleshoot Indian Tribes. Major accomplishments while exceeding budget target. 18 Maritime 2021 Financials Excludes Pension Adjustments Net Operating Income is $5.9M favorable to budget and $11.2M above 2020 • Revenue is $3.5M above budget driven by higher-than-expected Cruise occupancy, grain volumes, and unanticipated T-91 dockage. Revenue increase from 2020 driven primarily by the return of Cruise passenger revenue. • Expenses $2.5M or 5% favorable to budget driven by payroll savings, tenant improvements timing, consulting costs, and maintenance. Expenses down $4.6M Y/Y from lower Capital to Expense and Support Services. Fav (UnFav) Incr (Decr) • Capital spending was $18.9M or 72% of $26.2M budget. 2019 2020 2021 2021 $ in 000's Total Revenues Actual 59,289 Actual 42,111 Actual 48,738 Budget 45,280 Total Operating Expenses 50,609 52,357 47,784 50,243 Net Operating Income 8,680 (10,246) 954 Depreciation 17,627 17,624 Net Income (8,947) (27,870) Actual vs. Budget Variance $ % 3,4590 8% Change from 2020 2,458 (4,963) 17,718 (16,764) $ 6,627 % 16% 5% (4,573) -9% 5,917 119% 11,200 109% 16,899 (819) -5% 94 1% (21,862) 5,099 23% 11,106 40% Note: Totals excluding impact of pension adjustment Maritime achieved positive NOI in the face of a pandemic 19 Stormwater Utility Tracking to Budget $ in 000's Revenue NWSA Tenants Revenue Port Non-tenants Revenue Total Revenues Expenses SWU Direct Maintenance Expenses Seaport Project Management Environmental & Sustainability Other Central Services Total Expenses NOI Before Depreciation Depreciation NOI After Depreciation • • Fav (UnFav) Incr (Decr) Actual vs. Revised Change from 2020 Budget Variance $ % $ % 2019 2020 2021 2021 Actual Actual Actual Budget 1,206 3,293 1,340 5,839 1,422 3,171 1,781 6,374 1,662 3,159 1,439 6,260 1,503 3,508 1,452 6,464 158 (349) (14) (204) 11% -10% -1% -3% 240 (12) (342) (114) 17% 0% -19% -2% 994 3,039 32 319 850 5,233 606 1,209 (603) 1,372 2,460 56 21 831 4,740 1,635 1,240 395 1,052 2,631 47 5 809 4,544 1,716 1,285 431 1,377 3,636 56 18 872 5,958 506 1,267 (761) 325 1,005 9 12 63 1,414 1,209 (17) 1,192 24% 28% 15% 71% 7% 24% 239% -1% -157% (320) 171 (9) (16) (22) (195) 81 45 36 -23% 7% -15% -76% -3% -4% 5% 4% 9% Revenue under due to changes in tenant footprints. Expenses are under due to changes in maintenance allocation and COVID-19 impacts. Moving improvements forward 20 Northwest Seaport Alliance Summary NWSA Operating Income Before GASB 87 Adjustment $ in 000's Operating Revenue Operating Expense* Operating Income* 2020 Actual 184,327 93,795 90,532 Cargo TEUs Cargo Volume (Metric Tons) 3,320,379 36,115,724 2021 Actual Budget 202,466 192,042 89,221 94,782 113,245 97,260 Fav (UnFav) Budget Variance $ % 10,424 5% 5,561 6% 15,985 16% 3,736,206 37,653,477 Incr (Decr) Change from 2020 $ % 18,139 10% (4,574) -5% 22,713 25% 415,827 1,537,753 13% 4% *Excludes Depreciation Revenue – $10.4M above budget and $18.1M higher than 2020 driven by higher intermodal and equipment revenue of $3.1 million, rent over MAG at T18 and the APL/CMA CGM Modification Agreement payment, offset by the delay in T5 opening which was budgeted for July 2021. Operating Expenses – $5.6M favorable to budget from a combination of lower administrative costs, deferred project/major repairs spending, and capitalization of budgeted expenses related to T5 reefer-plugs. Volumes exceeding 2020 21 Joint Venture 2021 Financials $ in 000's Revenue NWSA Distributable Revenue Contra Joint Venture Revenue Subtotal Distributable Revenue frm NWSA 2019 2020 2021 2021 Actual Actual Actual Budget Incr (Decr) Fav (UnFav) Actual vs. Budget Change from 2020 Variance $ % $ % 47,979 47,979 38,782 (1,913) 36,869 55,732 (1,952) 53,781 42,273 (1,952) 40,322 13,459 0 13,459 32% 0% 33% 16,951 (38) 16,912 44% 2% 46% 3,006 427 268 366 430 503 - (137) 430 -27% (61) 163 -14% 61% Total Revenues Expenses Maintenance Expenses JV Direct Capital to Expense Security Environmental & Sustainability Cost Recovery Waterfront Project Management Central Services / Other 50,986 37,563 54,577 40,825 13,752 34% 17,014 45% 1,012 3,439 127 30 20 71 500 626 22 45 (33) (96) 570 1,157 140 74 147 105 (171) (314) 587 180 333 144 10 123 (17) -3% 977 543% 140 74 (186) -56% (40) -27% (181) -1791% (437) -355% 70 531 140 74 125 60 (138) (217) 14% 85% 563% 135% 423% 225% Total Expenses NOI Before Depreciation Legacy Depreciation for NWSA Facilities NOI After Depreciation 4,699 46,287 16,204 30,083 1,063 36,499 15,187 21,313 1,708 52,869 14,997 37,872 1,377 39,448 15,113 24,335 645 16,370 (190) 16,559 61% 45% -1% 78% Other Service Revenue Tenant Reimbursements Port Revenue from NWSA Facilities 331 13,421 (116) 13,537 24% 34% -1% 56% Increased distributable income. Home Port Activities Revenues: • NWSA Distributable Revenue favorable to budget. • Other Service Revenue below budget due to timing of tenant reimbursable Maintenance work. • Port Revenue from NWSA Facilities– temporary moorage on the northwest face of T46. Expenses • JV Direct – $620K Environmental reserve booked for June tied to contamination discovered during the crane rail work. • Pension adjustment of $682K 22 Maritime Achievements • Cruise – Re-started the cruise business after a year off. Cruise lines agreed not to discharge wash water from their exhaust gas cleaning systems un the Puget Sound. • Recreational Boating– Bell Harbor Marina hosted the return of Classic Weekend, an annual public event sponsored by the Classic Yacht Association with a full marina buyout as evidence of Guest moorage rebounding from pandemic. Moorage deferral program ended after helping 33 customers maintain their monthly moorage. • Elliott Bay Fishing and Commercial Operations - Welcomed the newly built 261’ fishing vessel North Star to Terminal 91 and increased utilization of small cruise and research vessels; Exceeded budget by $1.1M (25%). • Ship Canal – Successful summer boating program bought in 88 monthly recreational customers to Fishermen’s Terminal to use docks while fishing customers are out working. • Grain Terminal– Demand for corn, soybeans, and sorghum generated decade high volumes of over 4.7M metric tons. 23 Economic Development Division 2021 Financial Performance Report Economic Development Division Financial Summary Figure in $000s Actual Budget Variance Revenues 9,294 13,348 (4,054) O&M Expense EDD & Maritime Maintenance Diversity in Contracting Tourism *EDD Grants Central Services and Other Total before Pension Adj. Pension Adjustment Total Expenses 8,958 3,769 253 1,877 889 4,814 20,560 (2,396) 18,164 10,591 2,537 142 2,481 1,060 4,603 21,413 0 21,413 1,633 (1,232) (111) 603 171 (211) 853 2,396 3,249 NOI (8,870) (8,065) (805) Business Highlights • • • Slow recovery in Conference Centers. Maintained 95% occupancy despite ongoing COVID-19 challenges. Rent Deferrals: o 51 Applications o 37 Executed agreements o 34 Paid Off as of 12/31/21 o 3 Currently in program Capital Spending 4,311 5,647 1,336 *Includes $150K for Maritime Innovation in Budget and Actuals COVID-19 Recovery: Holding for leases, slow for Conference Centers 25 Economic Development Financial Highlights Excludes Pension Adjustment 2021 Net Operating Income $3.2M unfavorable to budget and $646K higher than 2020 • Revenue unfavorable to budget by $4.1M and $176K lower than 2020 driven primarily by COVID-19 cancellations at the Conference and Event Centers and no variable concession revenue at Bell St Garage until June. • Expenses favorable to budget by $0.9M driven by less conferences and Tourism spend, offset by impact of Maintenance allocation change. Expenses are lower by $0.8M Y/Y due to variable cost associated with lower Conference & Event Center volumes and reduced Central Service allocation expenses, offset by higher Maintenance costs and Washington Tourism Alliance. • Capital spending was $4.3M or 76% of $5.6M budget. Fav (UnFav) Actual vs. Budget Variance $ % (4,054) -30% 2019 2020 2021 2021 $ in 000's Total Revenues Actual 21,151 Actual 9,470 Actual 9,294 Budget 13,348 Total Operating Expenses 27,841 21,382 20,560 21,413 853 Net Operating Income (6,690) (11,912) (11,266) (8,065) Depreciation 3,647 3,611 3,841 Net Income (10,337) (15,523) (15,107) Incr (Decr) Change from 2020 $ (176) % -2% 4% (822) -4% (3,201) -40% 646 5% 3,216 (625) -19% 229 6% (11,281) (3,826) -34% 417 3% Note: Totals excluding impact of pension adjustment Revenue unfavorable, Expenses favorable to budget 26 EDD Program Advancements • Real Estate Management – Maintained 95 percent occupancy across portfolio of economic development and maritime properties. • Real Estate Development – Executed ground lease for T-106 redevelopment • Diversity in Contracting - Invested 11.2 percent of total Port spend in WMBE businesses and utilized 285 WMBE enterprises (through Q3 2022). • Tourism – International marketing efforts generated $1.9+ million in earned media. Created webinars in collaboration with U.S. Commercial Service, Visit USA Committees, CLIA, tour operators and travel trade publications to broadcast Washington tourism opportunities. • Economic Development and Innovation City grant partners helped over 1000 pandemic impacted businesses. Worked with Maritime Blue to support 2nd and 3rd Innovation Accelerator cohorts. 27 Central Services 2021 Financial Performance Report Central Services Financial Summary Figures in $000s Operating Revenues L2 Pension Subsidy Revenues Core Central Support Services Police Engineering/PCS O&M Expenses w/o DRS Pension True-up DRS Pension True-up Credit O&M Expenses w/DRS Pension True-up Capital Spending Business Highlights Actual Budget Variance 3,432 (3,665) (233) 181 181 3,251 (3,665) (414) 87,451 28,678 9,391 125,521 (29,768) 95,753 85,678 28,317 9,199 123,194 123,194 (1,773) (361) (192) (2,327) 29,768 27,441 5,436 9,658 4,222 • Announced a new partnership with the Seattle Aquarium, committing $5M over five years for the development of the Aquarium’s Ocean Pavilion project. • Held tree planting events in SeaTac, Burien, and Des Moines as part of the Green City Partnerships. • Acquired a new cybersecurity awareness platform and defense solution by transitioning to artificial intelligence integrated anti-phishing, spam filtering, and cybersecurity training tool. 29 Operating Expenses Summary $2.3M or 1.9% Unfavorable Charges to Capital Projects: $3.5M less than budget Outside Services: $836K over budget Other Expense: $269K below budget 30 Central Services Financial Highlights 2021 Total Operating Expenses are $2.3M unfavorable to the budget due to: • Lower charges to Capital Projects • Unbudgeted Outside Legal Services, partially offset by delays in contract spending 2021 Total Operating Expenses are $542K lower compared to 2020 due to: • Lower Outside Services costs due to project delays in 2021 • Lower Equipment spending in 2021 due to slow start of PC Refresh and unplanned higher spend in 2020 • Lower Travel and Other Employee Expenses • Lower 2021 spending is partially offset by higher Insurance Expense and lower charges to Capital Projects 31 Port Wide 2021 Financial Performance Report Port Wide Financial Summary • Total Operating Revenues: $59.1M lower than budgeted mainly due to applying Federal Relief grants to offset Aero revenue requirements. • Total Operating Expenses: $1.0M favorable to budget mainly due to delay in Outside Services spending, vacant positions, and lower Utilities and Third-Party Management Operating Expense. • NOI before Depreciation: $58.1M unfavorable to the budget (but $114.5M higher than 2020) In 000’s 33 Comprehensive Financial Summary ($ in 000's) Revenues 1. Operating Revenues 2. Tax Levy 3. PFCs 4. CFCs 5. Fuel Hydrant 6. Non-Capital Grants & Donations 7. Capital Contributions 8. Interest Income Total Actual Actual Actual Budget Fav (UnFav) Actual vs. Budget Variance $ % 764,174 73,801 100,004 22,355 6,742 2,880 17,736 54,078 1,041,771 510,828 76,196 34,637 15,429 6,886 149,913 20,909 41,406 856,203 621,755 78,311 72,845 24,271 7,010 105,988 47,632 (5,386) 952,428 680,861 78,676 67,990 24,168 7,022 40,908 74,911 13,158 987,694 (59,106) (365) 4,855 103 (12) 65,080 (27,278) (18,544) (35,266) -8.7% Lower Aero revenues due to federal relief grants -0.5% In line with budget 7.1% Actual included true-up from 2020 0.4% In line with budget -0.2% In line with budget 159.1% More federal relief grants -36.4% Less TSA OTA grants -140.9% Unrealized loss on investments -3.6% Expenses 1. O&M Expense (w/o Pension Credit) 2. DRS Pension True-up Credit 3. Depreciation 4. Revenue Bond Interest Expense 5. GO Bond Interest Expense 6. PFC Bond Interest Expense 7. Public Expense 8. Non-Op Environmental Expense 9. Other Non-Op Rev/Expense Total Special Item Change In Net Assets 458,112 (16,412) 174,903 105,601 12,493 3,547 12,986 118 19,536 1,212,585 (170,814) 425,904 (17,223) 180,086 133,149 11,850 2,670 6,658 5,971 22,033 1,179,779 (323,576) 422,372 (57,716) 190,683 132,925 11,004 1,041 9,769 7,495 19,469 1,101,699 34,907 (184,178) 423,412 176,509 155,990 11,268 2,539 10,144 10,200 2,413 1,215,887 (228,193) 1,040 57,716 (14,173) 23,066 264 1,498 375 2,705 (17,056) 114,189 (34,907) 44,016 0.2% In line with budget 0.0% Unbudgeted DRS pension credit -8.0% More new assets came into service 14.8% Lower rates and issuance costs than budgeted 2.3% In line with budget 59.0% Lower rates than budgeted 3.7% In line with budget 26.5% Due to project delay -707.0% Retired C1 Baggage System & Water Systems 9.4% 0.0% Env Reserve for T-25 Clean-up & Habitat Restoration -19.3% 2019 2020 2021 2021 Explanation 34 Community Programs Summary Fav (UnFav) Actual vs. Budget Variance $ % Incr (Decr) Change from 2020 Program ($ in $000) 2019 Actual 2020 Actual 2021 Actual 2021 Budget $ % 1) Energy & Sustainability Fund * 2) Airport Community Ecology (ACE) Fund * 3) South King County Community Impact Fund (SKCCIF)* 4) Duwamish Valley Community Equity Program 5) EDD Partnership Grants 283 260 763 5 168 80 272 865 160 154 848 304 771 373 212 2,000 275 910 213 58 1,152 (29) 139 57.0% 27.5% 57.6% -10.4% 15.3% 156 (14) 768 32 (94) 3311.8% -8.5% 960.4% 11.8% -10.9% 6) Tourism Marketing Support Program 1 1,374 989 1,917 2,481 563 22.7% 928 93.8% 934 (327) 269 382 113 29.5% 596 -182.5% 9) Maritime Blue (formerly Maritime Innovation Center) 1,400 - 1,400 45 1,400 118 1,400 150 32 0.0% 21.1% 73 0.0% 163.1% 10) Workforce Development 1 7) Airport Spotlight Ad Program 2&3 8) City of SeaTac Community Relief * 2 1,793 3,774 4,031 4,682 651 13.9% 257 6.8% 4 a. Opportunity Youth Initiative 11) High School Internship Program 529 1,338 295 1,721 317 2,000 500 279 184 13.9% 36.7% 383 21 28.6% 7.3% 12) Diversity in Contracting 1 & 5 928 - 1,084 80 1,092 243 1,510 180 418 (63) 27.7% -34.7% 8 163 0.8% 203.1% 14) Sustainable Aviation Fuels & Air Emissions Program 15) Low Carbon Fuel Standard Support 568 - 964 118 1,149 87 1,062 250 75 (88) 250 (12) -8.2% 100.0% -15.7% 186 (31) 19.3% n/a -26.5% TOTAL w/o DRS PensionTrue-up Credit DRS Pension Credit True Up TOTAL w/ DRS PensionTrue-up Credit 8,833 (107) 8,725 9,652 (160) 9,492 12,375 (532) 11,843 16,081 16,081 3,706 532 4,238 23.0% n/a 26.4% 2,724 (372) 2,352 28.2% 232.3% 24.8% a. Small Bus. Accelarator (DIC) 13) Equity, Diversity & Inclusion 1 • • • • The pandemic affected the implementation of several programs: ACE grants, E&S projects, SAF, and SKCCIF. $2.0M Opportunity Youth Initiative budget was added in May 2021 following the successful inaugural launch in 2020. Duwamish Valley Community Equity Program funded the opening of the Community Hub in the Duwamish Valley. Airport Spotlight program spending reflect the current Fair Market Value of the ad space, lower than originally anticipated. Notes: 1) DRS Pension True-up Credit excluded from department actuals. 2) Budgeted as Non-ops Expenses. 3) Free advertising space provided at the Airport. FAA requires that lost revenue be reimbursed to the Airport. 4) OYI Budget of $2.0M was added in May 2021; rolls up to Workforce Development total. 5) A portion of the SKCCIF budget is in Diversity in Contracting for 2021. Budget/Actual adjusted to avoid double counting. * Program with total designated funding limit. 35 Port Wide Capital Spending • Total 2021 capital spending was $420.3M, 78.3% of the budget 36 Aviation Division Appendix 2021 Financial Performance Report Airport Activity Total Passengers (000's) Domestic International Total Operations Landed Weight (In Millions of lbs.) Cargo All other Total Cargo - Metric Tons Domestic freight International & Mail freight Total 2019 YE 2020 YE 2021 YE % Change from 2020 46,101 5,728 51,829 18,689 1,357 20,045 34,485 1,669 36,154 84.5% 23.0% 80.4% 450,487 296,048 374,510 26.5% 2,485 29,078 31,562 2,713 17,485 20,198 2,920 23,664 26,584 7.6% 35.3% 31.6% 306,669 146,879 453,548 351,339 101,157 452,496 366,312 132,428 498,740 4.3% 30.9% 10.2% 2021 Year End Passenger volume: • 2021 Year End passenger volume is 30.2% lower than Year End 2019 pre-pandemic levels, and 80.3% higher than 2020. 38 Aviation Financial Summary 2019 2020 2021 2021 Fav(UnFav) Actual vs. Budget Variance Actual Actual Actual Budget $ 357,598 269,037 626,636 297,909 116,473 414,382 317,513 183,819 501,332 386,668 189,548 576,215 (69,155) (5,729) (74,884) -17.9% -3.0% -13.0% 19,604 67,346 86,950 6.6% 57.8% 21.0% 235,854 (2,361) 2,588 93,599 329,680 218,644 1,583 1,254 72,736 294,217 240,071 2,001 97,836 339,908 21,427 418 (1,254) 25,099 45,691 8.9% 20.9% Total Operating Expenses 245,114 15,900 2,089 92,141 355,245 25.7% 13.4% (17,210) 3,943 (1,334) (20,863) (35,463) -7.3% -167.0% -51.5% -22.3% -10.8% Net Operating Income 271,390 84,702 207,114 236,308 (29,193) -12.4% 122,412 144.5% CPE Enplaned passengers (in 000s) 12.86 6,671 25,874 26.50 93,175 10,044 15.94 92,132 18,073 19.62 82,742 18,216 3.67 9,390 (143) 0.19 11.3% -0.8% (10.56) (1,043) 8,029- -39.8% -1.1% 79.9% Capital Expenditures (in 000s) 573,598 573,598 389,051 491,202 102,151 20.8% (184,547) -32.2% Financial Summary ($ in 000's) Incr/(Decr) Change from 2020 % $ % Operating Revenue Aeronautical Revenues Non-Aeronautical Revenues Total Operating Revenues Operating Expenses Airport Direct Charges Environmental Remediation Liability Capital to Expense Charges from Other Divisions Non-Aero NOI ($ in 000s) Note: The Actuals for Operating Expenses includes the DRS Pension Credit 39 Key Performance Measures 2019 2020 2021 2021 Actual Actual Actual Budget Fav(UnFav) Actual vs. Budget Variance $ % Incr/(Decr) Change from 2020 $ % Key Performance Metrics Cost per Enplanement (CPE) 1 Non-Aeronautical NOI (in 000's) Other Performance Metrics O&M Cost per Enplanement Non-Aero Revenue per Enplanement Debt per Enplanement (in $) Debt Service Coverage Days cash on hand (10 months = 304 days) Aeronautical Revenue Sharing ($ in 000's) Activity (in 000's) Enplanements Total Passengers 12.86 143,917 26.50 6,671 15.93 93,175 19.62 82,742 3.68 10,433 18.8% 12.6% (10.57) 86,504 -39.9% 1296.8% 13.73 10.40 133 1.68 314 (17,146) 32.82 11.60 326 1.40 327 1 16.28 10.17 198 1.69 423 - 18.66 10.41 171 1.36 369 - 2.38 (0.23) (27) 0.33 54 - 12.8% -2.3% -16.1% 24.7% 14.7% 0.0% (16.55) (1.43) (128) 0.29 96 (1) -50.4% -12.3% -39.3% 20.7% 29.5% 100.0% 25,874 51,748 10,044 20,087 18,073 36,146 18,216 36,432 (143) (286) -0.8% -0.8% 8,029 16,058 79.9% 79.9% 40 Aviation Expense YE Summary Total Airport Expense Summary Fav(UnFav) Actual vs. Budget Variance Incr/(Decr) Change from 2020 2019 2020 2021 2021 Actual Actual Actual Budget $ Payroll Outside Services Utilities Other Expenses Total Airport Direct Charges 144,051 68,162 18,180 14,721 245,114 152,895 63,922 15,695 3,341 235,854 134,567 62,382 20,175 1,519 218,644 153,293 65,174 20,244 1,359 240,071 18,726 2,792 69 (160) 21,427 12.2% (18,328) (1,540) 4.3% 4,480 0.3% -11.7% (1,822) 8.9% (17,210) Environmental Remediation Liability Capital to Expense Total Exceptions 15,900 2,089 17,989 (2,361) 2,588 227 1,583 1,254 2,837 2,001 2,001 418 (1,254) (836) 20.9% Total Airport Expenses 263,104 236,081 221,481 242,072 20,591 8.5% (14,600) -6.2% Corporate Police Maritime/Economic Development/Other Total Charges from Other Divisions 65,729 22,290 4,123 92,141 68,316 22,150 3,134 93,599 56,711 13,916 2,110 72,736 69,767 23,964 4,105 97,836 18.7% (11,605) 41.9% (8,233) 48.6% (1,024) 25.7% (20,863) -17.0% -37.2% -32.7% -22.3% Total Operating Expenses 355,245 329,680 294,217 339,908 13,057 10,047 1,995 25,099 45,691 13.4% (35,463) -10.8% ($ in 000's) % $ % Operating Expenses -41.8% -12.0% -2.4% 28.5% -54.5% -7.3% 3,943 -167.0% (1,334) -51.5% 2,610 1150.9% Note: The Actuals for Operating Expenses includes the DRS Pension Credit 41 Aeronautical Business YE 2019 2020 2021 2021 Fav(UnFav) Actual vs. Budget Variance Actual Actual Actual Budget $ 123,436 22,016 205,283 12,321 363,057 84,906 15,146 171,607 8,616 280,275 88,061 17,146 184,625 10,978 300,810 115,037 21,418 213,147 21,454 371,056 (26,976) (4,272) (28,522) (10,475) (70,245) -23.4% -19.9% -13.4% -48.8% -18.9% 3,155 2,000 13,018 2,362 20,536 3.7% 13.2% 7.6% 27.4% 7.3% 11,687 374,744 17,633 297,908 16,702 317,513 15,612 386,668 1,090 (69,155) 7.0% -17.9% (931) 19,605 -5.3% 6.6% Total Aeronautical Revenues (17,146) 357,598 1 297,909 317,513 386,668 (69,155) -17.9% (1) 19,604 -100.0% 6.6% Total Aeronautical Expenses 236,959 219,878 203,573 233,102 29,528 12.7% (16,304) -7.4% Aeronautical NOI 120,639 78,031 113,940 153,566 (39,626) -25.8% 35,908 46.0% Aeronautical NOI ($ in 000's) Incr/(Decr) Change from 2020 % $ % Rate Base Revenues Airfield Movement Area Airfield Apron Area Terminal Rents Federal Inspection Services (FIS) Total Rate Base Revenues Airfield Commercial Area Subtotal before Revenue Sharing Revenue Sharing Note: The Actuals for Aeronautical Expenses includes the DRS Pension Credit 42 Aero Cost Drivers 2020 Actual 2021 Budget 2021 Actual Impact on Aero Revenues Budget vs Actual $ % O&M Federal Relief Grants O&M Net O&M Debt Service Before Offsets Debt Service PFC Offset Federal Relief Grants Debt Service Net Debt Service Amortization Space Vacancy TSA Operating Grant and Other Rate Base Revenues Commercial area 213,775 (22,507) 191,268 166,848 (36,390) (71,763) 58,694 32,359 (1,083) (960) 280,279 17,633 227,420 (3,500) 223,920 193,302 (47,549) (29,399) 116,354 32,681 (1,141) (758) 371,056 15,612 198,065 (2,571) 195,494 187,134 (54,076) (58,878) 74,180 32,511 (1,102) (687) 300,397 16,702 (29,356) 929 (28,426) (6,168) (6,527) (29,478) (42,173) (170) 40 71 (70,659) 1,090 -12.9% -26.6% -12.7% -3.2% 13.7% 100.3% -36.2% -0.5% -3.5% -9.4% -19% 7% Total Aero Revenues 297,912 386,668 317,099 (69,569) -18% $ in 000's (1) 2021 Actual to 2021 Budget O&M – $29M lower primarily due to Aero portion of pension credit (Movement, Terminal, Apron, Baggage & FIS) plus additional FIS savings due IAF opening delay offset by small variances in other areas. If not for Pension Credit, O&M amount would be very close to budget. Debt Service before Offsets: 3rd runway PFC debt was refunded with revenue bond which increased debt service and offset with refunding savings. PFC Offset $7M higher due to refunding of PFC debt with revenue bond which allows more capacity to use PFC collections for debt service offset. Federal Relief Grants Aero Portion: – O&M Impact - Reducing $2.6M from Rate Base – Debt Service Impact - Reducing $59M from Rate Base Aero rate base revenues based on cost recovery formulas 43 Non-Aeronautical Business YE (Includes Federal Concessionaire Relief grants) Passenger Volume is up 80.4% compared to prior year O&D Passenger Volume forecasted to be up 96.4% compared to prior year Non-Aeronautical NOI Fav(UnFav) Actual vs. Budget Variance 2019 2020 2021 2021 Actual Actual Actual Budget $ Public Parking Rental Cars Ground Transportation Airport Dining & Retail Other Total Non-Aeronautical Revenues 82,125 52,567 20,765 61,615 51,966 269,037 34,502 16,637 6,557 25,418 33,359 116,473 64,104 34,740 11,947 35,565 37,463 183,819 59,597 26,880 13,628 45,936 43,506 189,548 4,507 7,860 (1,681) (10,371) (6,043) (5,729) Total Non-Aeronautical Expenses 118,286 109,802 90,644 106,806 Non-Aeronautical NOI1 150,752 (6,834) 143,917 6,671 6,671 93,175 93,175 82,742 82,742 ($ in 000's) % 2021 Actuals to 2020 Actuals Incr/(Decr) Change from 2020 $ % 7.6% 29.2% -12.3% -22.6% -13.9% -3.0% 29,602 18,104 5,389 10,147 4,104 67,346 85.8% 108.8% 82.2% 39.9% 12.3% 57.8% 16,162 15.1% (19,159) -17.4% 10,433 10,433 12.6% 86,504 86,504 1296.8% Non-Aeronautical Revenues Less: CFC Surplus Adjusted Non-Aeronautical NOI Note: The Actuals for Non-Aeronautical Expenses includes the DRS Pension Credit 12.6% 1296.8% Non-Aero Revenue: • All Non-Aero lines of business were impacted by COVID-19, with NonAero businesses experiencing different rates of recovery in the pandemic environment. • Parking revenue recovery is more closely aligned with change in passenger volumes. • Rental Car strong revenue reflects shortage of fleet size, and corresponding increase in rental rates. • GT – slower recovery reflects delay in passenger returning to shared ride options. • ADR revenue recovery reflects shortage of labor and impact of slower recovery in international passenger volumes. 44 Non-Aero Revenue By Business Unit Non-Aero Revenue overview: • 2021 Non-Aero revenue results from concession fees or transaction volume (Parking, Rental Car, GT, ADR, Clubs & Lounges, In-flight Kitchens) reflects the unequal business recovery being experienced by Non-Aeronautical businesses during pandemic recovery cycle. • 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 45 Parking Revenue & O&D Enplanements as % of 2019 Actuals Parking Overview: • • Public Parking revenue recovery performing better than change in passenger volumes Doug Fox (offsite lot) recovering inline with O&D enplanements. 46 Public Parking forecast recovers with O&D passenger increase Passenger Volume forecasted to be up 81.4% compared to prior year O&D Passenger Volume forecasted to be up 98.2% compared to prior year 2021 Forecast vs. 2020 Actuals General Garage Parking (includes pre-booking program) – Garage parking activity is closely aligned with the return of O&D passenger volume. Passport program – demand is relatively stable, not closely aligned with passenger volumes. Significant portion of usage is from airport tenant employees. Doug Fox – revenue recovering stronger than O&D passenger volume, possibly due steeper declines in prior year due to customer preference away from parking with shared ride shuttles. 47 YE Public Parking metrics expected to reflect continued preference for close in self-parking Public Parking Revenue Metrics 2019 2020 2021 in 000's Total Enplanements O&D % O&D Enplanements Revenue per O&D Enplanement Metrics General Parking/Pre-Book/Premier Corporate Passport Parking Program Revenue per O&D Enplanement Concession Rent - Doug Fox off-site parking All Other Parking Revenue Total Parking per O&D Enplanement Actual 25,874 70.2% 18,163 Actual 10,037 65.9% 6,614 Actual 18,073 72.0% 13,013 4.14 0.20 4.34 0.18 0.00 4.52 4.62 0.41 5.03 0.18 0.01 5.22 4.55 0.21 4.77 0.20 0.00 4.97 $ $ $ 2021 Fav / (UnFav) Incr (Decr) Budget Variance Prior Year Actuals Budget # % $ % 18,216 (143) -0.8% 8,036 80.1% 68.0% 4.0% 5.9% 6.1% 9.3% 12,387 626 5.1% 6,398 96.7% $ 4.42 0.23 4.65 0.16 0.00 4.81 0.13 (0.01) 0.12 0.03 0.00 $ 0.16 0.03 (0.06) (0.06) (0.20) 0.03 (0.27) 0.21 0.02 0.44 (0.00) 3.2% $ (0.25) Incr (Decr) 2019 Actuals $ % (7,801) -30.1% 1.8% 2.6% (5,151) -28.4% -1.4% 0.41 -48.8% 0.01 -5.3% 0.43 11.2% 0.02 -63.5% (0.00) -4.8% $ 0.45 10.0% 7.5% 9.9% 10.0% -32.7% 9.9% Public Parking Key Metrics – 2021 Forecast vs. 2020 Actuals: • General Garage Parking (includes pre-booking) – revenue per enplanement retained much of increase experienced during pandemic O&D passenger decline, based on continued passenger preference for close in self-parking. • Passport parking programs – metric tracking closer to pre-pandemic levels. Significant portion of usage is from airport tenant employees. • Doug Fox off-site parking – metric forecasted slightly higher than pre-pandemic levels, due to increasing demand for close in parking. 48 Rental Car Key Metrics as % compared to 2019 Actuals • • Rental Car concession fee revenue similarly following enplanement recovery pattern Volatility in key metrics that impact Rental Car revenue • Average Ticket Price driven higher by shortages in rental vehicles and Transactions conversely impacted. 49 Rental Cars YE 2021 Forecast vs. 2020 Actuals Rental Car Concession Revenue Strong recovery reflects shortage of vehicles in rental car fleets, due to vehicle divestitures during the pandemic. Strong passenger demand for rental cars has driven up the rental rate, while the level of transactions remains low. CFC Operating Revenue - CFC collections are expected to exceed the debt service requirement by year-end, but are expected to be lower than the 2021 Budget due to the shortage of rentable vehicles this year which results in lower transaction activity. Broad and severe impact to Landside revenue from COVID-19 50 Ground Transportation GT Trips & O&D Enplanements as % of 2019 Actuals • • • GT Trip Totals Trips for all Ground Transportation operator types have not recovered as fast as enplanements as a shift to Public Parking is still holding. Passenger preference appears to be shifted away from shared ride alternatives. Trip volume will be closely monitored to determine if demand increases as passenger volume recovers. TNC remains highest trip activity within GT operator types. 51 Ground Transportation – Revenue YE 2021 Forecast vs. 2020 Actuals Passenger Volume forecasted to be up 81.4% compared to prior year O&D Passenger Volume forecasted to be up 98.2% compared to prior year Ground Transportation - Revenue Detail 2019 2020 2021 2021 $ in 000's Actual Actual Actual Budget 12,982 12,982 3,578 837 27 611 2,019 418 293 20,765 4,032 4,032 857 371 12 209 877 86 113 6,557 2,246 5,739 7,986 1,588 10 301 1,879 188 32 11,947 8,700 8,700 1,851 19 516 2,160 188 194 13,628 18,163 6,428 13,013 12,387 Ground Transportation Revenues TNC Drop-offs TNC Pick-ups TNC Total On Demand Taxis On Demand Limos Belled In Taxis (Annual Permit) Pre-Arranged Limos (Annual Permit) Courtesy Cars (cost recovery) All other Operators (cost recovery) Other Misc Revenues Total GT Revenue O&D Enplanements Fav (UnFav) Incr (Decr) Budget Variance Prior Year Actuals $ % 2,246 N/A (2,961) -34.0% (714) -8.2% (263) -14.2% N/A (10) -49.7% (215) -41.6% (281) -13.0% 0.0% (162) -83.3% (1,681) -12.3% 723 5.8% $ % GT Revenue Incr (Decr) 2019 Actuals $ % 2,246 N/A 1,707 42.3% 3,953 98.0% 731 85.2% (371) -100.0% (2) -19.5% 93 44.4% 1,001 114.2% 102 118.6% (80) -71.2% 5,389 82.2% 2,246 N/A (7,243) -55.8% (4,997) -38.5% (1,989) -55.6% (837) -100.0% (18) -64.8% (310) -50.7% (140) -6.9% (230) -55.0% (261) -88.9% (8,818) -42.5% 6,585 (5,151) 102.4% -28.4% Ground Transportation recovery remains slower than the recovery in O&D enplanements as customer preference away from shared ride transportation options continues during this pandemic recovery period. TNC revenue – continues to recover at a slower rate than the recovery in O&D enplanements. On-demand Taxi trip recovery is much slower than recovery in O&D enplanements. On-demand Limos (STILA) made the decision to cease operations at SEA in late-2020. Other GT operators impacted to varying degrees. 52 Ground Transportation – Trips YE GT Trip Activity & Metrics 2019 2020 2021 2021 in 000's Ground Transportation Trips TNC Drop-offs TNC Pick-ups TNC Total On Demand Taxis On Demand Limos Belled In Taxis (Annual Permit) Pre-Arranged Limos (Annual Permit) Courtesy Cars (cost recovery) All other Operators (cost recovery) Total GT Trip Activity Actual Actual Actual Budget 2,704 2,103 4,808 616 65 13 65 1,236 74 6,876 787 640 1,427 150 12 2 87 557 16 2,251 1,154 957 2,111 265 3 118 782 27 3,299 1,450 1,450 309 5 192 900 27 2,882 1,154 (493) 661 (44) (2) (74) (118) 417 N/A -34.0% 45.6% -14.2% N/A -38.5% -38.7% -13.1% 0.0% 14.5% 46.7% 367 49.4% 316 47.9% 683 76.7% 115 (12) -100.0% 53.4% 1 35.7% 31 224 40.3% 11 68.6% 1,048 46.5% Total Enplanements O&D % O&D Enplanements Trips per O&D Enplanement TNC Drop-offs TNC Pick-ups TNC Total Taxi All other Total Trips per O&D Enplanement 25,874 10,037 18,073 18,216 18,163 6,428 13,013 68.0% 12,387 (143) 4.0% 626 -0.8% 5.9% 5.1% 80.1% 8,036 6.1% 9.3% 6,585 102.4% (7) 4.0% 723 0.0% 5.9% 5.8% 12.2% 10.0% 22.2% 2.3% 10.5% 35.0% 8.9% 7.4% 16.2% 2.0% 7.1% 25.4% 0.0% 11.7% 11.7% 2.5% 9.1% 23.3% 8.9% -4.4% 4.5% -0.5% -2.0% 2.1% N/A -37.2% 38.6% -18.3% -21.8% 9.0% -3.4% -27.5% -2.6% -26.2% -6.0% -27.0% -0.3% -12.7% -3.4% -32.3% -9.7% -27.6% 8.0% -5.0% 3.0% -0.5% -2.1% 0.5% N/A -42.4% 26.0% -21.1% -22.7% 2.0% 70.2% 14.9% 11.6% 26.5% 3.4% 8.0% 37.9% 65.9% 72.0% Fav (UnFav) Incr (Decr) Budget Variance Prior Year Actuals % % $ $ Incr (Decr) 2019 Actuals % $ (1,550) -57.3% (1,147) -54.5% (2,697) -56.1% (351) -57.0% (65) -100.0% (10) -76.6% 80.7% 53 (454) -36.7% (47) -63.7% (3,577) -52.0% 2021 Forecast vs. 2020 Actuals GT Trip Activity Ground Transportation revenues and GT operators severely impacted by compounding pandemic factors: • COVID-19 declines in O&D passenger volumes • Customer preference away from shared ride transportation options during this pandemic. TNC trip volume includes drop-off trips starting in 2021. Overall TNC trip activity continues to recover at a slower rate than the recovery in O&D enplanements. On-demand Taxi trip recovery is much slower than recovery in O&D enplanements. On-demand Limos (STILA) made the decision to cease operations at SEA in late-2020. Other GT operators impacted to varying degrees. 53 Airport Dining & Retail YE Actuals Fav/(UnFav) Budget Variance Inc/(Dec) from Prior Year Actuals 2019 2020 2021 2021 Actual Actual Actual Budget $ Var % Var $ Change % Change Operating Revenue Duty Free Food & Beverage Retail Services Advertising All Other Total Operating Revenues 6,189 26,314 16,313 3,847 7,326 1,625 61,614 1,842 9,709 6,328 1,728 4,285 1,527 25,418 548 16,979 11,865 2,060 3,237 1,227 35,916 3,599 18,456 13,360 3,900 5,153 1,466 45,936 (3,052) (1,477) (1,496) (1,840) (1,916) (239) (10,020) -84.8% -8.0% -11.2% -47.2% -37.2% -16.3% -21.8% (1,294) 7,270 5,537 332 (1,048) (300) 10,498 -70.3% 74.9% 87.5% 19.2% -24.5% -19.6% 41.3% Total Enplanements International Enplanements 25,874 2,858 10,037 664 18,039 818 18,216 1,643 (177) (825) -1.0% -50.2% 8,002 154 79.7% 23.3% Revenue Summary (in $000s) Org(s): 3650-Airport Dining and Retail, Class: Top Level 2021 Actuals vs. 2020 Actuals Some components of ADR are recovering more quickly than others. ADR revenues tied closely to international passenger volumes are lagging due to the slower recovery of international travel. • Duty Free: Reflects the slower recovery in international enplanements and lower MAG/percentage rent structure of the new lease. • Food & Beverage and Retail: Strong demand drives recovery in line with, and in many cases better than returning passenger volume. • Advertising: This line of business is less closely tied to changing passenger volumes and is experiencing lower demand in 2021. 54 Airport Dining & Retail YE Actuals Sales Per Total Enplanement (SPE) Summary Org(s): 3650-Airport Dining and Retail, Class: Top Level Duty Free Food & Beverage Retail Services SPE - ADR Revenue Per Total Enplnaement (RPE) Summary Org(s): 3650-Airport Dining and Retail, Class: Top Level Duty Free Food & Beverage Retail Services RPE - ADR Fav/(UnFav) Budget Variance 2019 2020 2021 2021 Actual Actual Forecast Budget $ Var % Var 0.77 7.56 3.99 0.80 13.12 0.47 7.84 4.15 0.49 12.95 0.31 8.02 4.56 0.35 13.24 0.65 8.18 4.79 0.56 14.18 (0.34) (0.16) (0.23) (0.21) (0.94) -51.8% -2.0% -4.8% -38.2% -6.6% Fav/(UnFav) Budget Variance 2019 2020 2021 2021 Actual Actual Forecast Budget $ Var % Var 0.24 1.02 0.63 0.15 2.04 0.18 0.97 0.63 0.17 1.95 0.03 0.94 0.66 0.11 1.74 0.20 1.01 0.73 0.21 2.16 (0.17) (0.07) (0.08) (0.10) (0.41) -84.6% -7.1% -10.3% -46.7% -19.2% Inc/(Dec) from Prior Year Actuals $ Change % Change (0.16) 0.18 0.42 (0.15) 0.29 -33.3% 2.3% 10.0% -29.6% 2.3% Inc/(Dec) from Prior Year Actuals $ Change % Change (0.15) (0.03) 0.03 (0.06) (0.21) -83.5% -2.7% 4.3% -33.7% -10.7% 2021 Actuals vs. 2020 Actuals Sales per Enplanement (SPE) on Food & Beverage and Retail are improving as passenger volumes return. SPE growth is slower for Duty Free and Passenger Services, as these revenues are tied more closely to international passenger volume, which is recovering more slowly than domestic travel. Revenue per Enplanement (RPE) • Retail RPE is increasing as tiered rent reach higher tiers in 2021. • Duty Free and Foreign Currency (Services) leases reflect lower RPE due to renegotiated leases with a lower MAG / Percentage Rent Structures. 55 Non-Aero Commercial Properties Land Rent stable, but In-Flight Kitchen revenue negatively impacted by COVID-19 Fav/(UnFav) Budget Variance Inc/(Dec) from Prior Year Actuals 2019 YE 2020 YE 2021 YE 2021 YE Org(s): 3630-Non-Aero Commercial Properties, Class: Top Level Actual Actual Actual Budget $ Var % Var Operating Revenue Land Rental Space Rental In-Flight Kitchen Revenue Other Service Revenues Operating Grant Revenues Total Operating Revenues 4,658 464 10,053 548 49 15,773 5,267 942 3,990 566 0 10,765 5,208 836 5,989 613 0 12,646 5,222 800 7,078 613 0 13,713 (14) 36 (1,089) (0) 0 (1,066) -0.3% 4.5% -15.4% 0.0% 0.0% -7.8% (59) (106) 1,999 47 0 1,881 -1.1% -11.3% 50.1% 8.3% 0.0% 17.5% Total Enplanements International Enplanements 25,874 2,858 10,037 664 18,039 818 18,216 1,643 (177) (825) -1.0% -50.2% 8,002 154 79.7% 23.3% Revenue Summary (in $000s) $ Change % Change 2021 Actuals vs. 2020 Actuals COVID-19 impacts+ to Non-Aero Commercial Properties revenue is primarily limited to In-Flight Kitchen concession revenue. Despite domestic enplanements returning, In-Flight Kitchen revenue continues to lag. We now believe this revenue is more closely aligned to international passenger volume than previously understood. Land/Space Rent revenues are primarily fixed rates per sq.ft. and were therefore relatively unaffected by COVID-19 passenger volume declines/recovery. 56 Clubs & Lounges Impacted by lounge closures and passenger volume decline Fav/(UnFav) Budget Variance Inc/(Dec) from Prior Year Actuals 2019 YE 2020 YE 2021 YE 2021 YE Actual Actual Actual Budget $ Var % Var Operating Revenue Space Rental Total Operating Revenues 10,274 10,274 2,043 2,043 3,477 3,477 6,221 6,221 (2,743) (2,743) -44.1% -44.1% 1,434 1,434 70.2% 70.2% Total Enplanements International Enplanements 25,874 2,858 10,037 664 18,039 818 18,216 1,643 (177) (825) -1.0% -50.2% 8,002 154 79.7% 23.3% Revenue Summary (in $000s) Org(s): 3690-Club International Lounge, Class: Top Level $ Change % Change 2021 Actuals vs. 2020 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. A Concourse Lounge unfortunately remained closed through year-end 2020 and reopened in June 2021 due to low passenger volumes. 57 2021 Capital Expenditures 2021 YTD Actual 57,017 $ in 000's International Arrivals Facility (1) 2021 Budget Budget Variance $ % 86,500 29,483 34.1% 24.8% NSAT Renovation (2) 72,452 96,408 23,956 Checked Baggage (3) 97,633 86,100 (11,533) -13.4% 2,210 9,899 7,689 77.7% 576 6,744 6,168 91.5% 24,271 29,560 5,289 17.9% 392 5,215 4,823 92.5% Restroom Upgrades Conc B,C,D North MT Redevelopment 2021-25 AFLD Pvmnt (4) (5) (6) Concourse A Expansion (7) (1) IAF was expected to hit substantial completion in Q3 2021 with a summer opening. Challenges on the pedestrian walkway, issues with low voltage systems, smoke control, commissioning, and general issues with the design builder have yielded ongoing delays. (2) Variance due to construction costs that were pulled forward in 2020 that would have been performed in 2021 (Operation Silver Cloud) and project savings. (3) Accelerated schedule for SSAT Temp Maint Shop (4) Underspent due to close-out of earlier phases and the money remaining will be spent in later phases. (5) Underspent due to the delay in executing TRA 1, which was not fully executed until December 2021 RCF Security Improvements (8) 976 4,934 3,958 80.2% SSAT Infrastructure HVAC (9) 8,086 11,505 3,419 29.7% (6) Bid result for 2021 pavement project came lower than Engineer's estimates by $4.7M. 5,634 8,763 3,129 35.7% 469 3,479 3,010 86.5% (7) 2021 baseline was set previous to Notebook approval (03/05/21), whereas the project budget went from $60M to 71.4M 727 3,441 2,714 78.9% (8) The Construction Bid came in lower than Engineer's estimate 118,608 389,051 389,051 180,632 533,180 (41,978) 491,202 62,024 144,129 (41,978) 102,151 34.3% 27.0% 100.0% 20.8% (9) Returned $5M savings in Q1 and design delays have caused underspending C Concourse Expansion (10) Terminal Security Enhancements Phase 2 (12) Electric Utility SCADA All Other Subtotal CIP Cashflow Mgmt Reserve Total Spending (11) (10) Commission Authorization delays, due to re-evaluating financial impacts with COVID-19. (11) Cash flow based upon previous procurement that was cancelled, revised cash flow was based on DB procurement and did not being include 3 month delay to request Best and Final Offers (BAFO) from DB teams and execute contract. (12) SCADA Bid Opening Delayed and additional delay in NTP; Bids significantly under Engineers Estimate, returned savings last quarter Forecast spending variances primarily due to COVID-19 impact 58 Federal Relief Bolstering Key Financial Metrics SEA Grant Summary $ in millions Grants Received: $383.9 CARES CRRSA ARPA $192.1 $37.4 $154.4 *excludes concessions grants Grants Applied 2020 Actual 2021 Actual 2022 Budget Total Airline Benefits $32.3 7.7 22.4 12.9 10.4 4.2 4.3 94.3 $21.8 7.3 8.0 18.3 3.8 1.5 0.8 61.5 $16.0 $11.5 $18.0 $16.6 $5.0 $2.8 $1.8 71.8 $70.1 26.6 48.5 47.7 19.2 8.5 6.9 227.5 Non-Airline Benefit ** 52.9 33.5 26.2 112.7 Total Federal Funding Applied $147.1 $95.1 $98.0 $340.2 Cumulative Remaining $45.0 $141.7 $43.7 $43.7 Airline Benefit 64% 36% 65% 35% 73% 27% 67% 33% $103.9 $43.3 $91.7 $3.4 $82.8 $15.2 $278.4 $61.8 21.4 5.4 21.4 $119.4 $410.6 Airfield Movement Area Airfield Apron Area Terminal Building ** Federal Inspection Services ** Baggage System Gate Utilities Others Non-Airline Benefit ** Grant Usage Debt Service O&M Total • Total Federal Relief Grants used in 2021 was $100.4M o $61.5M used to reduce airlines rates and charges o $33.5M used for non-aero debt service o $5.4M reduced concessions billings • 2022 Budget includes: • $98M Federal Relief grants • $21.4M to reduce concessions billings • Remaining $43.7 million can be used in 2022 or 2023 ** Grants are shown after allocations Concessions 5.4 CRRSAA ARPA GRAND TOTAL: COVID RELIEF $147.1 $100.4 59 Maritime Division Appendix 2021 Financial Performance Report Maritime 2021 Financial Summary Incr (Decr) Change from 2020 Budget 4,135 4,509 12,915 8,558 4,903 10,259 0 0 45,280 Fav (UnFav) Actual vs. Budget Variance $ % 105 3% 1,110 25% (64) 0% 959 11% 1,209 25% 133 1% 7 NA (408) NA 3,051 7% $ (464) (133) 240 5,693 970 318 3 (408) 6,219 % -10% -2% 2% 149% 19% 3% 65% NA 15% 13,951 4,559 18,510 15,539 5,365 20,904 1,588 806 2,394 10% 15% 11% (2,725) 10 (2,715) -16% 0% -13% 12,353 2,947 1,072 1,144 17,518 11,326 2,018 1,163 342 14,849 11,595 2,140 977 316 15,028 268 123 (186) (26) 180 2% 6% -19% -8% 1% (1,027) (930) 91 (803) (2,669) -8% -32% 8% -70% -15% 2,850 4,387 1,604 6,189 279 15,309 2,888 3,131 1,242 6,035 318 13,614 2,695 3,064 1,222 7,109 336 14,426 2,853 3,118 1,347 6,749 243 14,311 159 54 125 (360) (93) (115) 6% 2% 9% -5% -38% -1% (193) (68) (20) 1,074 19 811 -7% -2% -2% 18% 6% 6% Total Expense before Pension Adjustment Pension Expense Adjustment 50,609 (1,965) 52,357 (2,129) 47,784 (7,070) 50,243 0 2,458 7,070 5% NA (4,573) (4,941) -9% 232% Total Expense NOI excluding Pension Adjustments NOI Before Depreciation Depreciation NOI After Depreciation 48,644 8,680 10,644 17,627 (6,982) 50,228 (10,246) (8,117) 17,624 (25,741) 40,714 954 7,616 17,718 (10,101) 50,243 (4,963) (4,963) 16,899 (21,862) 9,529 5,917 12,580 (819) 11,761 19% 119% 253% -5% 54% (9,514) 11,200 15,733 94 15,639 -19% 109% 194% 1% 61% 2019 2020 2021 2021 Actual 3,929 6,095 12,484 22,410 4,266 10,108 (3) 0 59,289 Actual 4,704 5,752 12,611 3,824 5,142 10,074 4 0 42,111 Actual 4,240 5,618 12,851 9,517 6,112 10,392 7 (408) 48,331 14,179 5,032 19,211 16,676 4,549 21,225 Maintenance Expenses Envir Services & Planning Seaport Finance & Cost Recovery Seaport Project Management Total Support Services 12,458 2,443 953 236 16,090 IT Police Expenses External Relations Other Central Services Aviation Division / Other Total Central Services / Other $ in 000's Ship Canal Fishing & Operations Elliott Bay Fishing & Commercial Operations Recreational Boating Cruise Grain Maritime Portfolio Management Other Pension Revenue Adjustment Total Revenue Expenses Maritime (Excl. Maint) Economic Development Total Direct Variance from Budget • Revenue $3.1M favorable: • Cruise – higher passengers than budgeted. • Grain – Increase Volumes. • Elliott Bay Fishing & Commercial from small cruise, research vessels restarting in 2021, new customer North Star in 2021, as well as utility sales. • Operating exp. $9.5M favorable: • Direct – Payroll, Utilities, Tenant Improvements, Cruise Consulting. • Support Services – Open FTEs & Maintenance Allocation change. • Central Services –Higher legal costs than budgeted. 61 Cruise 2021 Financials Fav (UnFav) Incr (Decr) Budget Variance Change from 2020 2020 2021 2021 $ in 000's Actual Actual Budget $ T-91 & Bell St Cruise Operations 3,796 9,387 8,520 Bell Street Vessel Operations 28 130 38 3,824 9,517 Total Revenue % $ % 867 10% 5,591 147% 92 241% 102 364% 8,558 959 11% 5,693 149% Expenses Maritime (Excl. Maint) 5,293 3,989 5,557 1,568 28% (1,304) -25% Economic Development 397 542 387 (155) -40% 145 37% Total Direct 5,690 4,531 5,944 1,413 24% (1,159) -20% Maintenance Expenses 2,600 2,213 2,084 (128) -6% (387) -15% Envir Services & Planning 780 243 360 117 33% (537) -69% Seaport Finance & Cost Recovery 271 180 231 50 22% (91) -33% Seaport Project Management 879 84 94 10 10% (795) -90% Total Support Services 4,529 2,720 2,769 49 2% (1,809) -40% IT 709 606 640 34 5% (103) -15% Police Expenses 963 765 779 14 2% (198) -21% External Relations 383 305 344 38 11% (78) -20% Other Central Services 2,064 1,786 1,670 (117) -7% (278) -13% Aviation Division / Other 111 112 81 (30) -37% 1 1% Total Central Services / Other 4,231 3,575 3,514 (61) -2% (656) -16% Pension Adjustment (51) (156) 0 156 105 205% Total Expense 14,399 10,670 12,226 1,557 13% (3,729) -26% NOI Before Depreciation (10,575) (1,153) (3,668) 2,515 69% 9,422 89% Depreciation 6,060 5,986 5,880 (106) -2% (74) -1% NOI After Depreciation (16,635) (7,139) (9,548) 2,409 25% 9,497 57% Variance from Budget • Cruise revenue variance is $959k more than budget due to great uncertainty when developing 2021 revenue budget. Budgeted 2021 using 25% of 2019 actual revenue + NCL preferential use and lease fee payment. • Expenses $1.6M less than budget due primarily to unspent consulting costs. Variance from 2020 • More revenue in 2021 due to partial cruise season vs no cruise season in 2020. • Expenses $7.2M less in 2021: • Capital to expense for T46 $1.4M less. • Outside services - $1.2M less. • Allocations - $942K less. • Bad debt from NCL payment $3.3M less. 62 Recreational Boating 2021 Financials 2020 2021 Year-to-Date $ in 000's Actual Actual Budget Berthage and Moorage & Concession Services Fav (UnFav) Budget Variance $ % Inc (Dec) Change from 2020 $ % 11,604 11,805 11,930 (125) -1% 200 2% Utility Sales Revenue 504 497 477 19 4% (7) -1% Other Service Revenue 399 464 440 23 5% 64 16% Other Total Revenue 103 86 107 (21) -20% (17) -17% 12,611 12,851 12,955 (104) -1% 240 2% -6% Expenses Maritime (excl Maint) 4,572 4,285 4,534 249 5% (287) Economic Development 309 332 295 (37) -13% 23 7% Total Direct 4,881 4,617 4,829 212 4% (264) -5% Maintenance Expenses 2,703 2,406 2,829 423 15% (297) -11% Envir Services & Planning 372 404 310 (94) -30% 32 9% Seaport Finance & Cost Recovery 193 179 227 48 21% (14) -7% Seaport Project Management 114 97 67 (30) -45% (16) -14% Total Suport Service 3,382 3,086 3,433 347 10% (295) -9% IT 760 720 770 50 7% (40) -5% Police Expenses 690 754 768 14 2% 64 9% External Relations 273 300 329 29 9% 27 10% Other Central Services 1,233 1,722 1,686 (36) -2% 489 40% Aviation Division/Other 67 75 52 (23) -45% 8 12% Total Central Services/Other 3,023 3,571 3,605 33 1% 548 18% Total Expense before Pension Adjustment Pension Adjustment Expense Impact 11,285 (147) 11,275 (474) 11,867 592 474 5% NA (11) (327) 0% 222% Total Expense 11,138 10,801 11,867 1,066 9% (337) -3% 39% NOI Before Depreciation 1,473 2,050 1,088 (962) -88% 577 Depreciation 2,874 3,251 2,640 (612) -23% 377 13% NOI After Depreciation (1,402) (1,201) (1,552) 350 -23% 200 -14% Variance from Budget • Revenue $104K lower due to lower monthly moorage occupancy than expected at SBM and BHM partially related to COVID-19 business disruptions • Operation expenses ~$1.1M favorable to budget related to 2021 Pension Adjustments $474K per GASB 68, $423K favorable in Maintenance expenses, $212K favorable in in Maritime direct charges which relate to utilities and bad debt expenses. Variance from 2020 • Revenue $240K higher relate to increasing boating interest at SBM and BHM. • Operation expenses ~$337K decrease in 2021 due to $327K increase in 2021 Pension Adjustment, $264K decrease in Maritime (excluding Maintenance) expenses, $297K decrease in Maintenance expenses; the decreases were partially offset by $489K increase in Other Central Services through Corp allocation • Includes Shilshole Bay Marina, Bell Harbor Marina, and Harbor Island Marina. 63 Ship Canal Fishing & Ops 2021 Financials Fav (UnFav) Budget Variance Inc (Dec) Change from 2020 2020 2021 Year-to-Date Actual Actual Budget Berthage and Moorage & Concession Services 3,859 3,786 3,736 50 1% (73) -2% Space Rental 186 136 192 (56) -29% (50) -27% $ in 000's $ % $ % Utility Sales Revenue 117 173 84 89 106% 56 48% Other 542 145 123 22 18% (397) -73% 4,704 4,240 4,135 105 3% (464) -10% Maritime (excl Maint) 2,706 2,478 2,531 53 2% (228) -8% Economic Development 51 231 70 (160) -229% 179 349% Total Direct 2,758 2,709 2,601 (107) -4% (49) -2% Maintenance Expenses 1,903 1,771 1,642 (129) -8% (132) -7% Envir Services & Planning 653 168 222 54 24% (485) -74% Seaport Finance & Cost Recovery 76 80 101 22 21% 3 4% Seaport Project Management 42 55 34 (21) -63% 13 31% 2,675 2,074 1,999 (74) -4% (602) -22% IT 350 371 419 48 11% 21 6% Police Expenses 270 337 343 6 2% 67 25% External Relations 107 134 146 13 9% 27 25% Other Central Services 489 814 740 (74) -10% 325 67% 23 1,240 34 1,690 18 1,667 (15) (22) -84% -1% 10 450 45% 36% 6,673 (84) 6,472 (264) 6,268 (204) 264 -3% NA (201) (180) -3% 216% Total Revenue Expenses Total Suport Service Aviation Division/Other Total Central Services/Other Total Expense before Pension Adjustment Pension Adjustment Expense Impact Total Expense 6,589 6,209 6,268 59 1% (381) -6% NOI Before Depreciation (1,886) (1,969) (2,133) 164 -8% (83) 4% Depreciation 2,320 2,366 2,351 (14) -1% 46 2% NOI After Depreciation (4,205) (4,334) (4,484) 150 -3% (129) 3% Variance from Budget • Revenue $105K favorable to the budget mainly related $89K favorable in Utility sales, $87K favorable in Moorage; the favorable results was partially offset by $56K unfavorable in Space rental and $37K unfavorable in Concession services • Operation expenses ~$59K favorable to the budgeted YTD contributed by $264K from 2021 Pension Adjustments per GASB 68; the favorable results was partially offset by $107K unfavorable in Total Direct charges, $129K in Maintenance Variance from 2020 • Revenue $464K or 10% lower contributed to mainly $404 received Derelict Vessels project in 2020 • Operation expenses ~$381K decrease in 2021 related to $180K increase in 2021 Pension Adjustment, $485K decrease in Envir Service & Planning related to Derelict Vessels project in 2020, $132K decrease in Maintenance Expenses, and offset by $450K increase in Central Services allocation • Includes Fishermen’s Terminal, Maritime Industrial Center, and Salmon Bay Marina. 64 Elliott Bay Fishing & Commercial Ops 2021 Financials Fav (UnFav) Budget Variance Inc (Dec) Change from 2020 2020 2021 Year-to-Date Actual Actual Budget Berthage and Moorage & Dockage 3,366 3,227 2,328 900 39% (138) -4% Space Rental 1,558 1,464 1,523 (59) -4% (94) -6% Utility Sales Revenue 533 706 505 201 40% 173 33% Other 295 221 155 66 43% (74) -25% 5,752 5,618 4,510 1,108 25% (133) -2% Maritime (excl Maint) 2,262 2,213 2,702 489 18% (49) -2% Economic Development 145 270 316 46 15% 125 86% 2,407 2,484 3,019 535 18% 77 3% $ in 000's Total Revenue $ % % $ Expenses Total Direct 1,454 1,213 1,159 (54) -5% (240) -17% Envir Services & Planning 187 153 195 43 22% (34) -18% Seaport Finance & Cost Recovery 136 104 133 29 22% (32) -23% Seaport Project Management 44 23 40 17 43% (21) -47% 1,820 1,493 1,528 35 2% (327) -18% IT 375 352 380 28 7% (23) -6% Police Expenses 380 370 378 8 2% (9) -2% External Relations 149 150 164 14 9% 1 1% Other Central Services 676 848 837 (11) -1% 172 25% Maintenance Expenses Total Suport Service 31 33 20 (13) -63% 2 6% Total Central Services/Other 1,610 1,752 1,780 27 2% 142 9% Total Expense before Pension Adjustment Pension Adjustment Expense Impact 5,838 (43) 5,729 (137) 6,326 597 137 9% NA (108) (93) -2% 215% 5,794 5,593 6,326 734 12% (202) -3% (43) 26 (1,816) 1,842 -101% 68 -160% Aviation Division/Other Total Expense NOI Before Depreciation Depreciation NOI After Depreciation 3,323 3,283 3,258 (25) -1% (39) -1% (3,365) (3,258) (5,075) 1,817 -36% 107 -3% Variance from Budget • Revenue $1.1M favorable related to small cruise, research vessels restarting in 2021, new customer North Star in 2021, as well as utility sales. • Operation expenses ~$734K favorable to the budgeted YTD. Utility expenses contributed $476K of the favorable, and $137K favorable from 2021 Pension Adjustments per GASB 68 Variance from 2020 • Revenue $133K or 2% lower primarily related to $122K decrease in Berthage & Moorage due to OTB right sized PNW operations and did not renew T-18 lease as of April 2021 • Operation expenses ~$202K decrease in 2021 contributed by $240K decrease in Maintenance expenses, $93K increase in 2021 Pension Adjustments per GASB 68; offset by $142K increase in Central Services allocation • 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. 65 Maritime Portfolio Management 2021 Financials $ in 000's Marina Office & Retail Maritime Industrial Utilities Total Revenue Expenses PM Direct EDD PM Direct EDD Other MD Direct Total Direct Maintenance Expenses Enviromental & Sustainability Seaport Finance & Cost Recovery Seaport Project Management Total Support Services Police Expenses Other Corp Expenses Total Central Services/Other Total Expense before Pension Adjustment Pension Expense Adjustment Total Expense NOI Before Depreciation Depreciation NOI After Depreciation 2020 Actual 2021 Actual 2021 Budget Fav(UnFav) Budget Variance $ % (547) 197 483 133 -14% 5% 24% 1% 3,952 300 459 1,604 6,315 2,918 263 217 48 3,446 647 2,133 2,779 12,541 (51) 12,490 (2,416) 2,503 (4,919) 2,718 255 144 413 3,529 2,500 228 198 50 2,976 678 2,429 3,107 9,612 (145) 9,467 925 2,501 (1,575) 3,762 314 175 341 4,592 3,116 254 237 63 3,670 689 2,411 3,100 11,363 0 11,363 (1,103) 2,446 (3,549) 1,107 95 31 (54) 1,179 633 26 43 14 716 11 (10) 1 1,751 145 1,896 2,029 (55) 1,974 29% 30% 18% -16% 26% 20% 10% 18% 21% 20% 2% 0% 0% 15% NA 17% 184% -2% 56% 3,601 4,335 2,138 10,074 3,460 4,422 2,510 10,392 4,006 4,225 2,028 10,259 Incr/(Decr) Change from 2020 $ % (142) 87 373 318 -4% 2% 17% 3% (1,276) (68) (315) (1,201) (2,860) (431) (35) (22) 2 (487) 31 293 324 (2,929) 94 (3,023) 3,341 (2) 3,344 -32% -24% -69% -75% -46% -15% -13% -10% 4% -14% 5% 14% 12% -23% 183% -24% 138% 0% 68% Variance from Budget • Revenue $133K favorable; Utilities and Space Rental at T106, partially offset by lower occupancy than expected at MIC and at FT. • Expenses $1,896K lower than budget due to favorable Utilities $720K, Maintenance Expenses $633K, and 2021 Pension Expense Adjustments $145K per GASB 68. Variance from 2020 • Revenue up $318K; Utilities and Space Rental at T106, partially offset by lower Space Rental at MIC and FT due to either relocation or reduction in square footage. • Expense down $3,023K; lower than prior year Small Work Construction $501K and Dept Expense Charged $436K related to Capital Project to Expense Write-offs, Maintenance Expenses $431K, and Utilities $185K. • 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. 66 Grain Terminal 2021 Financials Fav (UnFav) Actual vs. Budget Variance $ % 1,209 25% 1,209 25% Incr (Decr) Change from 2020 Variance from Budget • Revenue driven by higher corn volumes. • Expenses tracking lower than budget due to change in maintenance allocation policy. 2020 2021 2021 Actual 5,142 5,142 Actual 6,112 6,112 Budget 4,903 4,903 199 52 251 238 38 276 191 46 237 (47) 8 (39) -25% 18% -16% 39 (14) 24 19% -27% 10% Maintenance Expenses Envir Services & Planning Seaport Finance & Cost Recovery Seaport Project Management Total Support Services 365 75 50 11 501 294 44 39 9 386 748 58 48 10 864 455 14 9 1 478 61% 24% 19% 8% 55% (71) (31) (12) (2) (115) -20% -41% -23% -15% -23% IT Police Expenses External Relations Other Central Services Aviation Division / Other Total Central Services / Other 104 181 71 322 12 690 86 159 63 348 8 664 80 162 69 341 8 659 (6) 3 6 (7) (0) (5) -7% 2% 9% -2% -4% -1% (18) (22) (8) 26 (4) (26) -17% -12% -12% 8% -33% -4% Pension Adjustment (1) (3) 0 3 2 290% 1,000,000 Total Expense NOI Before Depreciation Depreciation NOI After Depreciation 1,442 3,700 530 3,170 1,323 4,789 317 4,472 1,761 3,143 311 2,832 438 1,646 (6) 1,640 (119) 1,089 (213) 1,302 -8% 29% -40% 41% 500,000 $ in 000's Lease Revnue Total Revenue Expenses Maritime (Excl. Maint) Economic Development Total Direct 25% 52% -2% 58% $ 970 970 % 19% 19% Variance from 2020 • Revenue and volumes up from 2020 with a 11% increase in metric tons. 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 0 2019 Soybeans 2020 Corn 2021 Sorghum 67 Maritime Capital 2021 $ in 000's T117 Restoration T91 Northwest Fender MD Small Projects MD Fleet FT Maritime Innovation Center T91 Berth 6&8 Redev P91 Pass Term Upgrade COV P66 Shore Power SBM Restrms/Service Bldgs Rep FT Gateway Building All Other Projects Total Maritime 2021 YTD Actual 7,959 5,402 668 484 464 1,139 0 483 380 316 1,628 18,923 2021 Budget 8,809 7,761 3,383 3,201 1,475 1,025 1,000 765 665 600 (2,489) 26,195 Budget Variance $ % 850 10% 2,359 30% 2,715 80% 2,717 85% 1,011 69% (114) -11% 1,000 100% 282 37% 285 43% 284 47% (4,117) 165% 7,272 28% T91 Northwest Fender – Construction bid well under Engineer's Estimate. Have reduced forecast accordingly. FT Maritime Innovation Center – Budget increase due to unexpected increased design costs, risk mitigation measures, and recent wage inflation. Spending has been delayed due to limited availability of geothermal drilling for site testing. MD Fleet – supply chain issues related to materials, electronics, and manufacturing have delayed nearly all new purchases. MD Small Projects– Projects moved to large capital (T91 Lighting, EV charging stations, T91 waterline, Energy Smart Metering) Cruise COVID Updates – Implemented signage in 2020, other modifications were completed under expense budget 68 Economic Development Division Appendix 2021 Financial Performance Report EDD 2021 Financials Fav (UnFav) Actual vs. Budget Variance $ % (929) -11% (3,125) -62% (4,054) -30% Incr (Decr) Change from 2020 2019 2020 2021 2021 $ in 000's Revenue Conf & Event Centers Total Revenue Expenses Portfolio Management Conf & Event Centers Actual 8,912 12,239 21,151 Actual 7,808 1,662 9,470 Actual 7,384 1,910 9,294 Budget 8,313 5,035 13,348 3,806 10,218 3,143 4,440 3,737 3,124 3,401 4,920 (336) 1,796 -10% 37% 594 (1,316) 19% -30% P69 Facilities Expenses 249 268 268 222 (46) -21% (0) 0% RE Dev & Planning 152 230 231 154 (77) -50% 1 1% EconDev Expenses Other Maintenance Expenses Maritime Expenses (Excl Maint) Total EDD & Maritime Expenses Diversity in Contracting Tourism EDD Grants Total EDD Initiatives Environmental & Sustainability Police Expenses Other Central Services Aviation Division Total Central Services & Aviation 963 3,155 1,088 19,631 198 1,374 785 2,357 29 224 5,486 114 5,853 974 3,055 1,117 13,227 162 991 778 1,931 33 215 5,815 161 6,225 736 3,769 862 12,727 253 1,877 889 3,019 24 205 4,408 177 4,814 835 2,537 1,060 13,128 142 2,481 1,060 3,683 31 209 4,242 120 4,603 99 (1,232) 198 401 (111) 603 171 663 7 4 (166) (57) (211) 12% -49% 19% 3% -78% 24% 16% 18% 23% 2% -4% -47% -5% (238) 714 (255) (500) 91 886 112 1,089 (9) (10) (1,408) 16 (1,411) -24% 23% -23% -4% 56% 89% 14% 56% -26% -5% -24% 10% -23% Total Expense before Pension Adjustment Pension Expense Adjustment Total Expense NOI Before Depreciation Depreciation 27,841 (703) 27,137 (5,986) 3,647 21,382 (771) 20,611 (11,141) 3,611 20,560 (2,396) 18,164 (8,870) 3,841 21,413 0 21,413 (8,065) 3,216 853 2,396 3,249 (805) (625) 4% NA 15% -10% -19% (822) (1,625) (2,447) 2,271 229 -4% 211% -12% 20% 6% NOI After Depreciation (9,633) (14,752) (12,711) (11,281) (1,430) -13% 2,041 14% $ (424) 248 (176) % -5% 15% -2% Revenue Variance from Budget • Lower Parking Revenues at Bell Street Garage • Lower Conference Center events Expense Variance Budget • Conference and Event center volumes driving reduced variable expenses. • Change in the Maintenance allocation methodology. • Moving $350K of Washington Tourism Alliance costs to 2022. • EDD Grants contain $150K for Maritime Blue. 70 Portfolio Management 2021 Financials $ in 000's Central Harbor T-91 Uplands Conference & Events Centers Foreign Trade Zone Total Revenue Expenses PM Outside Services PM Direct EDD Other MD Direct Total Direct Maintenance Expenses Enviromental & Sustainability Seaport Finance & Cost Recovery Seaport Project Management Total Support Services Police Expenses Other Corp Expenses Total Central Services/Other Total Expense before Pension Adjustment Pension Expense Adjustment Total Expense NOI Before Depreciation Depreciation NOI After Depreciation 2020 Actual 6,143 1,648 1,662 30 9,483 2021 Actual 6,320 1,241 1,910 25 9,496 2021 Budget 6,752 1,526 5,035 35 13,348 Fav(UnFav) Incr/(Decr) Budget Variance Change from 2020 $ % $ % (432) -6% 177 3% (286) -19% (408) -25% (3,125) -62% 248 15% (10) -29% (5) -17% (3,852) -29% 12 0% Variance from Budget • Revenue unfavorable to budget due to Conference & Events Centers’ revenue decline as a result of the ongoing COVID-19 restrictions on meetings and events. • Expenses lower than budget due to lower BHICC volumes. 406 7,174 1,472 341 9,393 3,054 183 466 119 3,823 215 4,852 5,067 18,283 (91) 832 6,018 1,031 282 8,163 3,753 137 334 97 4,321 205 4,596 4,801 17,285 (268) 522 7,798 1,450 307 10,078 2,534 267 420 66 3,286 209 4,366 4,576 17,940 0 (310) 1,976 419 25 2,110 (1,178) 133 93 (21) (973) 4 (218) (214) 655 268 -59% 25% 29% 8% 21% -46% 50% 22% -33% -30% 2% -5% -5% 4% NA Variance from 2020 • Uptick in business activity at Conference & Events Centers (BHICC & WTCS) after the restrictions lifted; WA State re-opening process has been slow moving due to waves of COVID-19. This is partially offset by lower occupancy at T-91 Uplands as a result of decreased demand for car storage amid the COVID-19 pandemic. • Expenses down from BHICC volumes. (4,591) 3,213 (7,805) (2,930) (623) (3,553) -64% -19% -46% 18,192 (8,708) 3,608 (12,316) 17,017 (7,521) 3,836 (11,357) 17,940 923 5% 426 (1,284) (441) (59) (1,358) 671 (47) (137) (30) 457 (10) (263) (274) (998) 176 105% -18% -30% -17% -15% 22% -26% -30% -25% 12% -5% -5% -5% -5% 193% 1,187 228 959 14% 6% 8% (1,175) -6% COVID-19 Impact to 2021 • Loss of revenues from BHICC & WTCS due to the ongoing COVID-19 restrictions on meetings and events. • 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. 71 EDD Capital 2021 $ in 000's BHICC Interior Modernization P69 Underdock Utility Rpl CW Bridge Elev Modernization WTC HVAC Replacement T91 Uplands Dev Phase 1 P66 Roof Upgrades EDD Small Projects Tenant Improvements -Capital EDD Technology Projects P66 HVAC Systems Upgrade All Other Projects Total Economic Development 2021 Actual 2021 Budget 514 205 539 2,200 438 213 45 0 0 0 157 1,990 1,028 943 848 800 544 522 289 250 185 (1,752) 4,311 5,647 Budget Variance $ 1,476 823 404 (1,352) 362 331 477 289 250 185 (1,909) 0 1,336 % 74% 80% 43% -159% 45% 61% 91% 100% 100% 100% 109% N BHICC Modernization – Approved annual 2021 budget incorrectly included expense portion of project. P69 Under Dock Utility Replacement – City of Seattle and Army Corps permitting approval process is taking longer than expected. WTC HVAC Replacement– Work accelerated work to compensate for future weather delays. T-91 Upland Development – Lower 2021 spending due to the need to procure new service agreement for design after terminating contract with former design consultant . 24% 72 Central Services Appendix 2021 Financial Performance Report Central Services Business Events • Announced new partnership with the Seattle Aquarium, committing $5M over five years for the development of the Aquarium’s Ocean Pavilion project. This partnership will support marine conservation efforts and promote tourism. • Held tree planting events in SeaTac, Burien, and Des Moines as part of the Green City Partnerships. • Acquired a new cybersecurity awareness platform and defense solution by transitioning to artificial intelligence integrated anti-phishing, spam filtering, and cybersecurity training tool. • Implemented the GASB No. 87, Lease Accounting. Accounting and Financial Reporting (AFR) reviewed and vetted over 180 leases against this new accounting standard. • Held a Police Assessment Town Hall with staff from the Task Force on Port Policing and Civil Rights presented the findings of the assessment and its recommendations. • Hosted Eastside Business SEA Access Workshop with the Bellevue Downtown Association and gathered input from the Kirkland Chamber Transportation Committee and Eastside Transportation Forum as part of the Ground Transportation Access Plan goals. • Amended to HR-8, Talent Acquisition to allow employees who resigned due to the vaccine requirement to be rehired without a competitive hiring process if they are fully vaccinated. 74 Central Services Financial Highlights $ in 000's Total Operating Revenues Core Central Support Services Police Engineering/PCS TOTAL w/o DRS Pension True-up Credit DRS Pension True-up Credit TOTAL w/ DRS Pension True-up Credit 2021 Actual 2021 Budget 181 (233) 2019 Actual 1,282 2020 Actual 2,512 80,217 30,555 11,408 122,181 85,386 30,071 10,606 126,063 87,451 28,678 9,391 125,521 85,678 28,317 9,199 123,194 (8,290) (8,588) (29,768) - 113,891 117,476 95,753 123,194 2021 Total Operating Expenses are $2.3M unfavorable to the budget due to: • Delay in contract spending and delays in hiring vacant positions, offset by unbudgeted outside legal services and lower charges to Capital Projects 2021 Total Operating expenses are $542K lower compared to 2020 due to: • Lower Outside Services costs due to project delays in 2021 • Lower Equipment spending in 2021 due to slow start to PC Refresh and unplanned higher spend in 2020 • Lower Travel and Other Employee Expenses • Lower 2021 spending is partially offset by higher Insurance Expense and less charges to Capital Projects 75 Central Services Expense by Category $ in 000's Salaries & Benefits Wages & Benefits Payroll to Capital Projects Equipment Expense Supplies & Stock Outside Services Travel & Other Employee Expenses Insurance Expense Litigated Injuries & Damages Other Expenses Charges to Capital Projects/Overhead Alloc TOTAL w/o DRS Pension True-up Credit DRS Pension True-up Credit TOTAL w/ DRS Pension True-up Credit 2019 2020 2021 2021 Actual 66,708 28,648 16,714 2,869 1,369 26,553 2,548 2,276 3,787 (29,291) 122,181 (8,290) 113,891 Actual 71,672 28,384 17,325 2,219 888 30,687 1,437 2,550 719 3,109 (32,926) 126,063 (8,588) 117,476 Actual 71,603 27,981 16,737 1,627 812 29,301 1,038 3,344 200 3,015 (30,136) 125,521 (29,768) 95,753 Budget 72,029 26,802 19,248 1,858 876 28,465 1,378 3,022 3,172 (33,655) 123,194 123,194 Incr (Decr) Fav (UnFav) Actual vs. Budget Variance Change from 2020 $ % $ % 426 0.6% (69) -0.1% (1,179) -4.4% (403) -1.4% 2,511 13.0% (588) -3.4% 231 12.4% (592) -26.7% 64 7.3% (76) -8.5% (836) -2.9% (1,387) -4.5% 340 24.7% (399) -27.8% (322) -10.7% 794 31.1% (200) 0.0% (519) -72.2% 156 4.9% (94) -3.0% (3,519) 10.5% 2,790 -8.5% (2,327) -1.9% (542) -0.4% 29,768 0.0% (21,180) 246.6% 27,441 22.3% (21,722) -18.5% • Wages unfavorable due to vacancy factor in in the budget. • Outside Services unfavorable to budget due to unbudgeted outside legal expenses. • Charges to Capital unfavorable to budget due to delay of some capital projects. 76 Central Services Capital Spending $ in 000's Infrastructure - Small Cap Services Tech - Small Cap Radio System Upgrade Office Wi-Fi Refresh Phone System Upgrade Environmental MIS projects CDD Fleet Replacement Corporate Fleet Replacement Other (note 1) Subtotal CIP Cashflow Adjustment TOTAL 2021 2021 Budget Variance Actual Budget $ 805 1,242 2,062 32 426 4 230 247 388 5,436 5,436 1,911 1,226 2,955 1,350 840 600 1,123 685 1,968 12,658 (3,000) 9,658 % 1,106 57.9% (16) -1.3% 893 30.2% 1,318 97.6% 414 49.3% 596 99.3% 893 79.5% 438 63.9% 1,580 80.3% 7,222 57.1% (3,000) 100.0% 4,222 43.7% Note: (1) "Other" includes remaining ICT projects and small capital projects/acquisitions. 77 Port wide Appendix 2021 Financial Performance Report Port Wide Financial Summary $ in 000's Aeronautical Revenues Airport Non-Aero Revenues Non-Airport Revenues Total Operating Revenues Total Operating Expenses NOI before Depreciation Depreciation NOI before Depreciation w/o DRS Pension True-up DRS Pension True-up Credit NOI after Depreciation w/ DRS Pension True-up • • • 2019 2020 2021 2021 Actual 357,598 269,037 137,538 764,174 458,112 306,062 174,903 131,159 (16,412) 147,571 Actual 297,909 116,473 96,446 510,828 425,904 84,923 180,086 (95,163) (17,223) (77,939) Actual Budget 317,513 386,668 183,819 189,548 120,423 104,645 621,755 680,861 422,372 423,412 199,383 257,448 190,683 176,509 8,700 80,939 (57,716) 66,416 80,939 Fav (UnFav) Incr (Decr) Actual vs. Budget Change from 2020 Variance $ % $ % (69,155) -17.9% 19,604 6.6% (5,729) -3.0% 67,346 57.8% 15,778 15.1% 23,978 24.9% (59,106) -8.7% 110,927 21.7% 1,040 0.2% (3,532) -0.8% (58,065) -22.6% 114,459 134.8% (14,173) -8.0% 10,597 5.9% 72,239 89.3% 103,863 -109.1% 57,716 0.0% (40,493) 235.1% (14,523) -17.9% 144,355 -185.2% Total Operating Revenues: $59.1M unfavorable to the budget and $110.9M higher than 2020 Total Operating Expenses: $1.0M favorable to the budget and $3.5M lower than 2020 without the DRS Pension Credit. NOI before Depreciation: $58.1M unfavorable to the budget and $114.5M higher than 2020 without the Pension Credit. 79 Non-Airport Financial Summary 2019 $ in 000's NWSA Distributable Revenue Maritime Revenues EDD Revenues SWU & Other Total Operating Revenues Total Operating Expenses NOI before Depreciation Depreciation NOI before Depreciation w/o DRS Pension True-up DRS Pension True-up Credit NOI after Depreciation w/ DRS Pension True-up • • Actual 47,979 59,289 21,151 9,119 137,538 89,266 48,272 38,737 9,536 (2,811) 12,347 Fav (UnFav) Incr (Decr) 2020 2021 2021 Actual vs. Budget Change from 2020 Variance Actual Actual Budget $ % $ % 38,782 55,732 42,273 13,459 31.8% 16,951 43.7% 42,111 48,331 45,280 3,051 6.7% 6,219 14.8% 9,470 9,294 13,348 (4,054) -30.4% (176) -1.9% 6,083 7,066 3,744 3,322 88.7% 983 16.2% 96,446 120,423 104,645 15,778 15.1% 23,978 24.9% 82,117 80,693 83,505 2,812 3.4% (1,424) -1.7% 14,328 39,730 21,140 18,590 87.9% 25,402 177.3% 37,674 37,841 36,496 (1,345) -3.7% 166 0.4% (23,346) 1,890 (15,355) (17,245) 112.3% 25,236 -108.1% (3,116) (10,254) (20,230) 12,143 (15,355) 27,499 -179.1% 32,373 -160.0% Non-Airport Operating Revenue is $15.8M favorable due to higher revenues from Grain, NWSA Distributable Revenues, and unbudgeted Police Revenues partially offset by lower revenues from Cruise and Conference & Event Center. Non-Airport Operating Expenses are $2.8M lower than budget due cost savings measures which include hiring freeze, delay in implementing program initiatives, and travel and other employee expenses. 80 Port Wide Operating Revenues Summary Fav (UnFav) Actual vs. Budget Variance $ % (69,155) -17.9% Incr (Decr) Change from 2020 $ % 19,604 6.6% 2019 2020 2021 2021 $ in 000's Aeronautical Revenues Actual 357,598 Actual 297,909 Actual 317,513 Budget 386,668 Public Parking Rental Cars - Operations Rental Cars - Operating CFC ADR & Terminal Leased Space Ground Transportation Employee Parking Airport Commercial Properties Airport Utilities Clubs and Lounges Cruise Recreational Boating Fishing & Operations Grain Maritime Portfolio Management Central Harbor Management Conference & Event Centers NWSA Distributable Revenue Other Total Operating Revenues (w/o Aero) 82,125 36,793 15,773 68,013 20,765 10,438 15,773 7,431 10,274 22,410 12,484 10,024 4,266 10,108 8,899 12,239 47,979 10,783 406,576 34,502 16,637 31,234 6,557 8,848 10,766 5,672 2,043 3,824 12,611 10,456 5,142 10,074 7,791 1,662 38,782 6,318 212,919 64,104 32,722 2,018 41,607 11,947 9,006 12,520 6,350 3,478 9,517 12,851 9,859 6,112 10,392 7,561 1,910 55,732 6,555 304,242 59,597 24,379 2,501 51,184 13,628 9,688 13,713 7,568 6,221 8,558 12,915 8,644 4,903 10,259 8,278 5,035 42,273 4,848 294,193 4,507 8,343 (483) (9,576) (1,681) (682) (1,193) (1,218) (2,743) 959 (64) 1,215 1,209 133 (717) (3,125) 13,459 1,706 10,049 7.6% 34.2% -19.3% -18.7% -12.3% -7.0% -8.7% -16.1% -44.1% 11.2% -0.5% 14.1% 24.7% 1.3% -8.7% -62.1% 31.8% 35.2% 3.4% 29,602 16,086 2,018 10,373 5,389 158 1,754 678 1,435 5,693 240 (597) 970 318 (230) 248 16,951 237 91,323 85.8% 96.7% 0.0% 33.2% 82.2% 1.8% 16.3% 12.0% 70.2% 148.9% 1.9% -5.7% 18.9% 3.2% -3.0% 14.9% 43.7% 3.8% 42.9% TOTAL 764,174 510,828 621,755 680,861 (59,106) -8.7% 110,927 21.7% 81 Port Wide Operating Expense Summary Fav (UnFav) Actual vs. Budget Variance $ % 2,405 1.6% (4,513) -3.5% 4,131 12.5% 4,477 4.3% 1,765 6.3% (105) -1.6% (777) -9.0% 378 15.7% 2,715 35.2% 389 8.6% (2,022) -14.8% (7,803) 12.4% 1,040 0.2% Change from 2020 $ % (2,671) -1.8% (2,316) -1.7% (780) -2.6% (4,154) -4.0% 4,218 19.2% (3,468) -33.6% (526) -5.3% (733) -26.5% (207) -4.0% 788 23.6% 3,834 32.5% 2,483 -4.3% (3,532) -0.8% - 57,716 0.0% (40,493) 235.1% 423,412 58,756 13.9% (44,025) -10.8% 2019 2020 2021 2021 $ in 000's Salaries & Benefits Wages & Benefits Payroll to Capital Projects Outside Services Utilities Equipment Expense Supplies & Stock Travel & Other Employee Expenses Third Party Mgmt Op Exp B&O Taxes Other Expenses Charges to Capital Projects/Overhead Alloc TOTAL w/o DRS Pension True-up Credit Actual 135,913 136,451 25,832 106,463 25,838 11,865 11,197 5,449 13,329 4,859 33,553 (52,636) 458,112 Actual 147,623 137,054 29,759 103,637 22,017 10,331 9,894 2,764 5,201 3,332 11,806 (57,515) 425,904 Actual 144,953 134,738 28,979 99,482 26,236 6,863 9,368 2,031 4,994 4,120 15,640 (55,031) 422,372 Budget 147,358 130,225 33,110 103,959 28,000 6,758 8,591 2,409 7,709 4,509 13,618 (62,834) 423,412 DRS Pension True-up Credit (16,412) (17,223) (57,716) TOTAL w/ DRS Pension True-up Credit 441,700 408,681 364,656 Incr (Decr) • Payroll expenses were $2M below budget primarily due to vacant positions. • Outside Services were $4.5M favorable to budget due to project delays. • Travel & Other Employee Expenses were $378K lower than budget due to cutting/eliminating non-essential business travel and training. • Charges to Capital Projects were lower by ($7.8M) due to delays in Capital Projects 82 Port Wide Capital Spending Summary $ in 000's Aviation Maritime Economic Development Central Services & Other (note 1) TOTAL 2021 Actual 389,051 18,924 4,311 8,019 420,305 2021 Budget 491,202 26,195 5,647 13,605 536,649 Budget Variance $ % 102,151 20.8% 27.8% 7,271 1,336 23.7% 41.1% 5,586 116,344 21.7% Note: (1) "Other" includes 100% Port legacy projects in the North Harbor and Storm Water Utility Small Capital projects. 83
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