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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