11c. Attachment
Q1 2022 Financial Performance Briefing
Item No. 11c_attach Meeting Date: May 24, 2022 PORT OF SEATTLE Q1 2022 FINANCIAL PERFORMANCE REPORT AS OF MARCH 31, 2022 Q1 2022 FINANCIAL & PERFORMANCE REPORT 03/31/22 TABLE OF CONTENTS PAGE I. Portwide Performance Report 3-8 II. Aviation Division Report 9-18 III. Maritime Division Report 19-23 IV. Economic Development Division Report 24-28 V. Central Services Division Report 29-33 2 I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 03/31/22 I. PORTWIDE EXECUTIVE SUMMARY The Port's first quarter results still reflect the effects of COVID-19 with lines of businesses showing different rates of recovery. Airport passenger volume continue to rebound and expected to be 7.6% lower than 2019. Federal relief funds allow the airport to extend relief to concession tenants and improve the financial outlook for the Aviation division. The 2022 cruise schedule was announced in February with a record 295 scheduled sailings and an estimated 1.26 million revenue passengers. Grain volumes is up 6% year over year and is expected to exceed budget while Conference and Event Centers is experiencing a slower rate of recovery. The Port continues to implement planned initiatives and programs to help communities hardest hit by the pandemic. This includes the launch of the second year of funding under the Environmental Grants Program. Eighteen organizations will receive grants to support projects related to urban forest restoration, park trails maintenance, youth environmental stewardship, community garden improvements, and installation of a public bicycle skills track. PORTWIDE FINANCIAL SUMMARY Fav (UnFav) Incr (Decr) 2020 YTD 2021 YTD 2022 YTD 2022 YTD Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual Actual Budget $ % $ % Aeronautical Revenues 86,284 61,313 87,213 88,140 (927) -1.1% 25,901 42.2% Airport Non-Aero Revenues 49,956 26,930 50,944 30,915 20,029 64.8% 24,013 89.2% Non-Airport Revenues 25,313 24,658 28,488 26,599 1,889 7.1% 3,830 15.5% Total Operating Revenues 161,553 112,901 166,645 145,654 20,991 14.4% 53,744 47.6% Total Operating Expenses 103,591 94,866 105,002 119,102 14,099 11.8% 10,137 10.7% NOI before Depreciation 57,962 18,036 61,643 26,552 35,091 132.2% 43,608 241.8% Depreciation 43,728 44,829 51,021 45,996 (5,025) -10.9% 6,192 13.8% NOI after Depreciation 14,233 (26,794) 10,622 (19,444) 30,066 -154.6% 37,416 -139.6% 2022 YTD Actuals vs. 2022 YTD Budget: Airport Non-Aero Revenues were up $20.0M compared to budget mainly due to timing of applying the Concessionaire Relief Grant and higher Public Parking revenue, partially offset by lower revenue from Rental Cars. Non-Airport Revenues were $1.9M above budget mainly due to higher NWSA Distributable revenue. Total Operating Expenses are $14.1M lower than budget due to delays in hiring and implementing projects/initiatives. 2022 YTD Actuals vs. 2021 YTD Actuals: Total Operating Revenues were up $53.7M due higher passenger volumes compared to 2021; higher revenues in non-aeronautical lines of businesses (Public Parking, ADR & Terminal Leased Space, Rental Cars, Ground Transportation, Clubs & Lounges, Airport Commercial Properties) and NWSA Distributable Revenue. Total Operating Expenses was $10.1 M higher compared to 2021 due to higher Payroll, Utilities, Outside Services, and General Expenses. 3 I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 03/31/22 NON-AIRPORT FINANCIAL SUMMARY Fav (UnFav) Incr (Decr) 2020 YTD 2021 YTD 2022 YTD 2022 YTD Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual Actual Budget $ % $ % NWSA Distributable Revenue 10,730 11,343 14,030 12,360 1,670 13.5% 2,687 23.7% Maritime Revenues 9,340 9,539 10,511 9,969 542 5.4% 972 10.2% EDD Revenues 3,277 2,002 2,580 3,338 (758) -22.7% 578 28.9% SWU & Other 1,966 1,774 1,367 931 435 46.8% (407) -23.0% Total Operating Revenues 25,313 24,658 28,488 26,599 1,889 7.1% 3,830 15.5% Total Operating Expenses 18,425 16,778 19,736 23,480 3,745 15.9% 2,958 17.6% NOI before Depreciation 6,888 7,881 8,753 3,119 5,634 180.7% 872 11.1% Depreciation 9,423 9,510 9,452 9,098 (354) -3.9% (59) -0.6% NOI after Depreciation (2,535) (1,630) (699) (5,979) 5,280 -88.3% 930 -57.1% 2022 YTD Actuals vs. 2022 YTD Budget Non-Airport Operating Revenues were up $1.9M compared to budget due to higher NWSA Distributable Revenue, Grain, Fishing and Operations, Stormwater Utilities (SWU), Maritime Portfolio Management, and unbudgeted police forfeitures which were offset by lower volumes at the Conference and Event Center. Non-Airport Operating Expenses were $3.7M lower than budget because of delays in hiring, project spending delays, timing of tenant improvements, and maintenance costs offset by higher Utilities and General Expenses. 2022 YTD Actuals vs. 2021 YTD Actuals Non-Airport Operating Revenues were $3.8M higher compared to 2021 because of higher revenues from Conference and Event Centers, Maritime Portfolio Management, Grain, NWSA Distributable Revenue, Recreational Boating, Fishing and Operations, and unbudgeted police forfeitures offset by lower Cruise revenue. Non-Airport Operating Expenses were $3.0M higher than 2021 due to higher Payroll, Outside Services, Equipment Expense, Insurance Expense, and other General Expenses. 4 I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 03/31/22 MAJOR OPERATING REVENUES SUMMARY Fav (UnFav) Incr (Decr) 2020 YTD 2021 YTD 2022 YTD 2022 YTD Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual Actual Budget $ % $ % Aeronautical Revenues 86,284 61,313 87,213 88,140 (927) -1.1% 25,901 42.2% Public Parking 16,720 9,330 18,872 17,121 1,752 10.2% 9,542 102.3% Rental Cars - Operations 6,928 3,484 6,705 7,384 (679) -9.2% 3,221 92.4% Rental Cars - Operating CFC - - 566 1,971 (1,405) -71.3% 566 0.0% ADR & Terminal Leased Space 12,376 6,297 11,374 (9,025) 20,398 -226.0% 5,076 80.6% Ground Transportation 3,931 1,459 3,551 3,536 14 0.4% 2,091 143.3% Employee Parking 2,623 2,144 2,447 2,617 (170) -6.5% 303 14.1% Airport Commercial Properties 3,641 2,557 3,807 3,306 501 15.1% 1,250 48.9% Airport Utilities 1,606 1,297 1,801 1,941 (140) -7.2% 504 38.9% Clubs and Lounges 1,714 175 1,057 1,738 (682) -39.2% 882 505.3% Cruise 114 48 (66) 59 (125) -211.5% (114) -237.5% Recreational Boating 3,134 3,125 3,443 3,377 66 2.0% 318 10.2% Fishing & Operations 2,501 2,203 2,488 2,222 267 12.0% 285 13.0% Grain 1,048 1,719 1,874 1,753 122 6.9% 155 9.0% Maritime Portfolio Management 2,541 2,443 2,765 2,554 211 8.3% 322 13.2% Central Harbor Management 2,158 1,870 1,962 1,984 (21) -1.1% 92 4.9% Conference & Event Centers 1,115 127 618 1,347 (729) -54.1% 491 386.9% NWSA Distributable Revenue 10,730 11,343 14,030 12,360 1,670 13.5% 2,687 23.7% Other 2,391 1,967 2,137 1,268 869 68.6% 170 8.7% Total Operating Revenues (w/o Aero) 75,269 51,589 79,432 57,514 21,918 38.1% 27,843 54.0% TOTAL 161,553 112,901 166,645 145,654 20,991 14.4% 53,744 47.6% MAJOR OPERATING EXPENSES SUMMARY Fav (UnFav) Incr (Decr) 2020 YTD 2021 YTD 2022 YTD 2022 YTD Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual Actual Budget $ % $ % Salaries & Benefits 35,987 35,317 37,033 37,228 195 0.5% 1,717 4.9% Wages & Benefits 34,133 31,551 32,529 35,049 2,520 7.2% 978 3.1% Payroll to Capital Projects 6,497 6,398 5,556 8,669 3,112 35.9% (842) -13.2% Outside Services 20,420 19,135 20,451 35,166 14,715 41.8% 1,316 6.9% Utilities 6,871 6,658 8,149 6,894 (1,255) -18.2% 1,491 22.4% Equipment Expense 2,160 1,248 1,946 3,153 1,207 38.3% 699 56.0% Supplies & Stock 2,503 2,127 1,980 2,364 383 16.2% (147) -6.9% Travel & Other Employee Expenses 1,101 445 672 1,628 956 58.7% 227 50.9% Third Party Mgmt Op Exp 2,445 886 1,466 2,344 878 37.4% 580 65.5% B&O Taxes 1,086 764 974 1,084 110 10.1% 210 27.5% Other Expenses 3,989 2,270 5,711 3,985 (1,726) -43.3% 3,441 151.6% Charges to Capital Projects/Overhead Alloc (13,602) (11,933) (11,466) (18,461) (6,994) 37.9% 467 -3.9% TOTAL 103,591 94,866 105,002 119,102 14,099 11.8% 10,137 10.7% 5 I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 03/31/22 PORTWIDE FINANCIAL YEAR-END FORECAST SUMMARY Fav (UnFav) Incr (Decr) 2020 2021 2022 2022 Fcst vs. Budget Change from 2021 Variance $ in 000's Actual Actual Forecast Budget $ % $ % Aeronautical Revenues 297,909 317,513 385,706 394,963 (9,257) -2.3% 68,193 21.5% Airport Non-Aero Revenues 116,473 183,819 239,404 240,820 (1,415) -0.6% 55,586 30.2% Non-Airport Revenues 96,446 120,689 137,373 131,072 6,302 4.8% 16,685 13.8% Total Operating Revenues 510,828 622,020 762,484 766,854 (4,370) -0.6% 140,464 22.6% Total Operating Expenses 408,681 364,656 494,450 499,146 4,696 0.9% 129,794 35.6% NOI before Depreciation 102,147 257,364 268,033 267,708 325 0.1% 10,670 4.1% Depreciation 180,086 190,683 196,757 196,757 - 0.0% 6,074 3.2% NOI after Depreciation (77,939) 66,681 71,277 70,952 325 0.5% 4,596 6.9% Year-End Forecast Total Operating Revenues are expected to be $4.4M lower than budget but $140.5M higher than 2021; the federal relief helps offset $77M of the Aeronautical revenues for 2022. Total Operating Expenses are expected to be $4.7M favorable to the budget and $129.8M higher than 2021. It would have only been $72.1M higher than 2021 after adjusting for $57.7M state pension credit in 2021. NOI before depreciation forecast to be $325K favorable to the budget and $10.7M higher than 2021. KEY PERFORMANCE METRICS Fav (UnFav) Incr (Decr) 2021 YTD 2022 YTD 2021 2022 2022 Fcst vs. Budget Change from 2021 Variance Actual Actual Actual Fore cas t Budge t Chg. % Chg. % Total Passengers (in 000's) 4,868 9,015 36,146 47,819 48,517 (698) -1.4% 11,673 32.3% Landed Weight (lbs. in millions) 5,266 6,430 26,584 29,448 29,448 - 0.0% 2,864 10.8% Passenger CPE (in $) N/A N/A 15.93 14.44 14.82 0.38 2.6% (1.49) -9.4% Grain Volume (metric tons in 000's) 1,393 1,480 4,720 4,613 4,500 113 2.5% (108) -2.3% Cruise Passenger (in 000's) - - 229 1,300 907 - 0.0% - 0.0% Shilshole Bay Marina Occupancy 93.1% 96.9% 94.5% 96.3% 96.3% 0.0% 0.0% 1.8% 1.9% 6 I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 03/31/22 KEY BUSINESS EVENTS The Port welcomed the first two women of color to the Commission and for the first time in the Port's 110-year history. One of the new commission's first agenda for 2022 was the briefing on the results of the Port-wide equity assessment. The goals of the assessment were to identify strengths, weaknesses, and barriers to equity; establish a baseline to track the Port's progress in becoming a more equitable organization; and develop strategies and actions to build a more equitable, anti-racist Port. A progress report will be presented to the commission in December of 2022. The Port expanded its investment in equitable recovery programs with approval of $3.9 million in funding for the Youth Career Launch Program (formerly Opportunity Youth Initiative) and Economic Development Partnership. The Youth Career Launch Program was originally launched in 2020 to help mitigate the impacts of the pandemic. The program provided internship training opportunities in Port-related jobs and careers in aviation, construction, green jobs, and maritime to 280 youth of color and from economically distressed zip codes in 2021. This year's grants will continue to focus on projects that advance equitable economic recovery. The Port has selected 25 grant applicants to receive a total of $200,000 Port funds under the 2022 Tourism Marketing Support Program (TMSP). Projects spearheaded by awardees will support equity, cultural tourism values, ecotourism, responsible travel, and increase the number of visitors and visitor expenditures within Washington. Additionally, the Port awarded 18 organizations serving communities around Seattle-Tacoma International Airport (SEA) with environmental grants totaling $687,000. The Port offered multi-year awards of up to 3 years to allow groups to invest in long-term planning and implementation of projects geared in addressing noise mitigation, environmental health, and sustainability. The Port Commission authorized the Memorandum of Understanding (MOU) with the City of Seattle that will contribute $5.5 million to the East Marginal Way Corridor Improvement project. This project will improve safety, support freight loads by rebuilding East Marginal Way to heavy haul standards, promote efficiency through signal modifications, and improve wayfinding and lighting. The project will commence this year and is estimated to wrap up in 2025. The Port hosted a special event to reveal Seattle-Tacoma International Airport (SEA)'s brand-new International Arrivals Facility (IAF), which is the most complex capital project in the Port's history. It will dramatically improve travelers' experience and advance the Puget Sound region as a leading tourism and business gateway. Construction consisted of nearly three million labor hours including nearly one million minority labor hours (35%), over 500,000 apprentice hours (19%), and more than 139,000 (5%) labor hours by women. In addition, SEA became the only second large hub U.S. airport to earn the travel industry's prestigious Skytrax 4-Star Airport Rating. Key improvements that led to this high rating include wayfinding and customer information improvements, seating and furniture upgrades, seat power rollout, and substantive upgrades to the dining experience. The Port shared the 2022 preliminary cruise schedule with 295 scheduled sailings and an estimated 1.26 million revenue passengers through the two cruise ship terminals. The Port partnered with the cruise line to host cruise a job fair at the Port's Community Hub in South Park. The Port is one of the most environmentally progressive cruise homeports in North America, setting new standards that go beyond regulatory compliance. The Port continues to work closely with the industry to minimize the climate change and air quality impacts by requiring shore power capable ships to use shore power. A new shore power connection at Bell Street Pier Cruise Terminal is expected to be completed in 2023. 7 I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 03/31/22 CAPITAL SPENDING SUMMARY 2022 2022 2022 2022 Budget Variance $ in 000's YTD Actual Fore cas t Budget POF $ % Aviation 58,342 449,817 527,917 514,812 78,100 14.8% Maritime 2,357 21,950 23,521 23,408 1,571 6.7% Economic Development 1,179 10,811 10,483 10,515 (328) -3.1% Central Services & Other (note 1) 1,157 11,210 12,889 11,013 1,679 13.0% TOTAL 63,035 493,788 574,810 559,748 81,022 14.1% Note: POF (Plan of Finance) is the total estimated during the budget process. (1) "Other" includes 100% Port legacy projects in the North Harbor and Storm Water Utility Small Capital projects. Total capital spending is forecast to be $493.8M for 2022, 85.9% of the budget due to delay in projects: P66 Shore Power, North MT Redevelopment, C1 Building Floor Expansion, Office Wi-Fi Refresh. PORTWIDE INVESTMENT PORTFOLIO During the first quarter of 2022, the investment portfolio earned 0.81% versus the benchmark's (the Bank of America Merrill Lynch 1-3 Year US Treasury & Agency Index) of 2.22%. Over the last twelve months, the portfolio and the benchmark have earned 0.87% and 0.86%, respectively. Since the Port became its own Treasurer in 2002, the life-to-date earnings of the Port's portfolio and the benchmark are 2.31% and 1.67%, respectively. 8 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 II. AVIATION DIVISION FINANCIAL SUMMARY Fav(UnFav) Actual vs. Budget Incr/(Decr) Financial Summary 2020 2021 2022 2022 Variance Change from 2021 ($ in 000's) Actual Actual Fo recast Budget $ % $ % Operating Revenue Aeronautical Revenues 297,909 317,513 385,706 394,963 (9,257) -2.3% 68,193 21.5% Non-Aeronautical Revenues 116,473 183,819 239,404 240,820 (1,415) -0.6% 55,586 30.2% Total Operating Revenues 414,382 501,332 625,110 635,783 (10,672) -1.7% 123,779 24.7% Operating Expenses Airport Direct Charges 235,854 218,644 283,514 285,197 1,684 0.6% 64,869 29.7% Environmental Remediation Liability (2,361) 1,583 791 985 194 19.7% (792) -50.0% Capital to Expense 2,588 1,254 - - - (1,254) -100.0% Charges from Other Divisions 93,599 72,736 112,527 111,440 (1,087) -1.0% 39,790 54.7% Total Operating Expenses 329,680 294,217 396,831 397,622 791 0.2% 102,614 34.9% Net Operating Income 84,702 207,114 228,279 238,160 (9,881) -4.1% 21,165 10.2% CPE 26.50 15.93 14.44 14.82 0.38 2.6% (1.49) -9.4% Non-Aero NOI ($ in 000s) 93,175 21,521 110,779 114,047 (3,268) -2.9% 89,258 414.8% Enplaned passengers (in 000s) 10,044 18,073 23,909 24,259 (349) -1.4% 5,836 32.3% - Capital Expenditures (in 000s) 573,598 389,051 449,817 527,917 78,100 14.8% 60,766 15.6% 2022 Forecast vs. 2022 Budget Net Operating Income (NOI) for 2022 which includes Federal Relief grants is forecasted to be (-$9.9M or - 4.1%) unfavorable to the budget, driven primarily by: o Lower Aeronautical revenue (-$9.3M or -2.3%) is primarily due to savings in cost from the delays in the Airline Realignment timing and IAF and with more grants applied in the forecast compared to what was in the budget. See the Airline Rate Base Cost Drivers table for more details. o Non-Aeronautical revenue is (-1.4M or -0.6%) unfavorable primarily due to the shortage of labor and impact of slower recovery in international passenger volumes, along with the delay of opening the new Salty's Restaurant, delay of the AMEX Lounge opening and lower lounge visits so far this year, partially offset by strong performances in In-Flight Kitchens and AlClear. o Total Operating Expenses are projected to be closely aligned to budget at ($791K or 0.2%) favorable. 2022 Forecasts vs. 2021 Actuals Net Operating Income for 2022 is projected to be ($21.2M or 10.2%) higher than prior year primarily driven by: o Higher Operating Revenue ($123.8M or 24.7%) compared to prior year is due to passenger levels improving with a forecast of being down only 7.5% compared to 2019 vs. 29.6% down in 2021 when compared to 2019. o Higher Operating Expenses ($102.6M or 34.9%) compared to prior year were primarily driven by higher Payroll, Outside Services, and Charges from Other Divisions compared to 2021. 2021 was the first year of recovery, but spending was still lower than normal due to directives to spend less due to the business environment related to the pandemic. 9 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 A. BUSINESS EVENTS Expected passenger levels is projected to be 7.6% lower than 2019. Federal relief continues to improve bottom line, and helps customers: o $118.8 million for ARPA o $21.4 million for tenant concessions relief (CRRSAA) o Planning to reserve $22.9 million for 2023 Soft opening of IAF in April 2022 B. KEY PERFORMANCE METRICS % YTD Change YTD 2020 YTD 2021 YTD 2022 from 2021 Total Passengers (000's) Domestic 8,205 4,662 8,338 78.9% International 1,004 205 677 229.5% Total 9,209 4,868 9,015 85.2% Operations 99,983 75,878 89,018 17.3% Landed Weight (In Millions of lbs.) Cargo 606 709 691 -2.5% All other 6,283 4,557 5,739 25.9% Total 6,889 5,266 6,430 22.1% Cargo - Metric Tons Domestic freight 75,866 84,502 82,797 -2.0% International & Mail freight 25,795 25,223 32,145 27.4% Total 101,661 109,725 114,942 4.8% *Mail weight for 2021 forward is incorporated in freight 10 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 Key Performance Measures Fav(UnFav) 2020 2021 2022 2022 Actual vs. Budget Incr/(De cr) Variance Change from 2021 Approved Actual Actual Fore cas t Budget $ % $ % Key Performance Metrics Cost per Enplanement (CPE) 26.50 15.93 14.44 14.82 0.38 2.6% (1.49) -9.4% Non-Aeronautical NOI (in 000's)1 6,671 93,175 110,779 114,047 (3,268) -2.9% 17,604 18.9% Other Performance Metrics O&M Cost per Enplanement 32.82 16.28 16.60 16.39 (0.21) -1.3% 0.32 2.0% Non-Aero Revenue per Enplanement 11.60 10.17 10.01 9.93 0.09 0.9% (0.16) -1.6% Debt per Enplanement (in $) 326 198 142 140 (2) -1.5% (56) -28.2% Debt Service Coverage 1.40 1.69 2.29 2.03 0.26 12.8% 0.60 35.5% Days cash on hand (10 months = 304 days) 327 423 411 426 -15 -3.6% (12) -2.9% Aeronautical Revenue Sharing ($ in 000's) 1 - - - - 0.0% - 0.0% Activity (in 000's) Enplanements 10,044 18,073 23,909 24,259 (349) -1.4% 5,836 32.3% Total Passengers 20,087 36,146 47,819 48,517 (698) -1.4% 11,673 32.3% (1) Assumes Federal Relief for Concessions applied in the 2022 Forecast Key Performance Metrics 2022 Forecast vs. 2022 Budget Cost per Enplanement (CPE): o CPE is ($.38 or 2.6%) favorable driven primarily by the Federal Relief to help lower the Aeronautical costs to recover. o Non-Aero NOI is (-$3.3M or -2.9%) unfavorable to budget primarily due to shortage of labor and impact of slower recovery in international passenger volumes, along with the delay of opening the new Salty's Restaurant. 2022 Forecast vs. 2021 Actuals CPE is $1.49 lower compared to prior year due to more Federal Relief offsetting the costs compared to prior year. Non-Aero NOI is $17.6M higher than prior year due to projection of improved revenues compared to prior year across the Non-Aeronautical businesses. 11 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 C. OPERATING RESULTS Division Summary YTD Actuals Fav(UnFav) Actual vs. Budget Incr/(Decr) Total Airport Expense Summary 2020 YTD 2021 YTD 2022 YTD 2022 YTD Variance Change from 2021 ($ in 000's) Actual Actual Actual Budget $ % $ % Operating Expenses Payroll 39,071 37,305 38,499 39,668 1,169 2.9% 1,193 3.2% Outside Services 14,011 13,477 14,781 25,625 10,844 42.3% 1,304 9.7% Utilities 4,884 5,060 5,529 4,723 (806) -17.1% 469 9.3% Other Expenses 3,061 24 2,502 (565) (3,066) 543.1% 2,478 10515.5% Total Airport Direct Charges 61,027 55,865 61,310 69,450 8,141 11.7% 5,444 9.7% Environmental Remediation Liability - - - - - - Capital to Expense - 75 - - - (75) -100.0% Total Exceptions - 75 - - - (75) -100.0% Total Airport Expenses 61,027 55,940 61,310 69,450 8,141 11.7% 5,370 9.6% Corporate 16,791 15,891 17,627 18,321 693 3.8% 1,736 10.9% P olice 6,509 5,537 5,562 6,910 1,348 19.5% 25 0.5% Maritime/Economic Development/Other 838 720 767 940 173 18.4% 47 6.6% Total Charges from Other Divisions 24,139 22,148 23,957 26,171 2,214 8.5% 1,809 8.2% Total Operating Expenses 85,166 78,088 85,267 95,621 10,355 10.8% 7,179 9.2% Expenses 2022 YTD Actuals vs. 2022 YTD Budget Operating Expenses were ($10.4M or 10.8%) favorable driven primarily by the underspend in Charges from other Divisions of $2.2M, and in Outside Services of $10.8M across multiple business areas. The bulk of the under-run is in the Aviation Project Management Group with delays in the Airline Realignment work and Custodial Contract in Maintenance due to late invoices, and under-runs in Facilities and Infrastructure due to timing of when service directives are executed. Also, there were $2.2M under-run in Charges from Other Divisions. 12 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 Division Summary YE Forecast Fav(UnFav) Actual vs. Budget Incr/(Decr) Total Airport Expense Summary 2020 2021 2022 2022 Variance Change from 2021 ($ in 000's) Actual Actual Fo recast Budget $ % $ % Operating Expenses Payroll 152,895 134,567 168,162 167,505 (657) -0.4% 33,594 25.0% Outside Services 63,922 62,382 95,565 101,757 6,193 6.1% 33,182 53.2% Utilities 15,695 20,175 21,308 21,008 (300) -1.4% 1,133 5.6% Other Expenses 3,341 1,519 (1,521) (5,074) (3,553) 70.0% (3,040) -200.1% Total Airport Direct Charges 235,854 218,644 283,514 285,197 1,684 0.6% 64,869 29.7% Environmental Remediation Liability (2,361) 1,583 791 985 194 19.7% (792) -50.0% Capital to Expense 2,588 1,254 - - - (1,254) -100.0% Total Exceptions 227 2,837 791 985 194 19.7% (2,046) -72.1% Total Airport Expenses 236,081 221,481 284,305 286,182 1,878 0.7% 62,824 28.4% Corporate 68,316 56,711 79,902 78,940 (962) -1.2% 23,191 40.9% P olice 22,150 13,916 27,767 27,658 (108) -0.4% 13,850 99.5% Maritime/Economic Development/Other 3,134 2,110 4,858 4,842 (16) -0.3% 2,749 130.3% Total Charges from Other Divisions 93,599 72,736 112,527 111,440 (1,087) -1.0% 39,790 54.7% - Total Operating Expenses 329,680 294,217 396,831 397,622 791 0.2% 102,614 34.9% Operating Expenses 2022 YE Forecast compared to 2022 YE Budget ($398K or 0.1% favorable) Total Operating Expenses is forecasted to be under-run to Budget by $791K driven by projected savings at year-end primarily due to the delays in the Airline Realignment work within the Aviation Project Management Group and delays in the opening of IAF in Q1, partially offset overruns due to less charges to capital versus expenses, vacancy savings target that has not been fully met, and more allocations from Central Services. 13 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 Aeronautical Business Unit Summary YTD Actuals Fav(UnFav) Actual vs. Budget Incr/(Decr) Aeronautical NOI 2020 YTD 2021 YTD 2022 YTD 2022 YTD Variance Change from 2021 ($ in 000's) Actual Actual Actual Budget $ % $ % Rate Base Revenues Airfield Movement Area 25,223 15,396 23,669 23,700 (31) -0.1% 8,272 53.7% Airfield Apron Area 5,360 4,302 4,119 3,691 428 11.6% (183) -4.3% Terminal Rents 47,756 35,605 50,680 51,922 (1,243) -2.4% 15,075 42.3% Federal Inspection Services (FIS) 4,019 1,869 4,662 4,679 (17) -0.4% 2,794 149.5% Total Rate Base Revenues 82,357 57,172 83,130 83,993 (863) -1.0% 25,958 45.4% - Airfield Commercial Area 3,927 4,139 4,084 4,148 (64) -1.5% (55) -1.3% Subtotal before Revenue Sharing 86,284 61,311 87,213 88,140 (927) -1.1% 25,903 42.2% Revenue Sharing - - - - - - Total Aeronautical Revenues 86,284 61,311 87,213 88,140 (927) -1.1% 25,903 42.2% - Total Aeronautical Expenses 50,268 54,141 58,283 65,628 7,344 11.2% 4,142 7.7% Aeronautical NOI 36,016 7,169 28,930 22,513 6,417 28.5% 21,761 303.5% Aeronautical 2022 YTD Actuals vs. 2022 YTD Budget Net Operating Income was ($6.4M or 28.5%) favorable to budget driven by lower operating expenses in Outside Services and Charges from Other Divisions. Aeronautical 2022 YTD Actuals vs. 2021 YTD Actuals Net Operating Income was ($21.8M or 303.5%) higher than 2021 Q1 because aeronautical revenues in 2022 were based on increased passenger activity compared to the same last year when it was only the first year of recovery where activity levels were still low. Aeronautical Business Unit Summary - YE Forecast Fav(UnFav) Actual vs. Budget Incr/(Decr) Aeronautical NOI 2020 2021 2022 2022 Variance Change from 2021 ($ in 000's) Actual Actual Fo recast Budget $ % $ % Rate Base Revenues Airfield Movement Area 84,906 88,061 118,704 118,291 413 0.3% 30,643 34.8% Airfield Apron Area 22,016 17,146 15,197 16,439 (1,242) -7.6% (1,950) -11.4% Terminal Rents 205,283 184,625 212,017 220,174 (8,157) -3.7% 27,393 14.8% Federal Inspection Services (FIS) 8,616 10,978 23,280 23,468 (188) -0.8% 12,302 112.1% Total Rate Base Revenues 320,821 300,810 369,198 378,373 (9,174) -2.4% 68,388 22.7% Airfield Commercial Area 17,633 16,702 16,508 16,590 (82) -0.5% (194) -1.2% Subtotal before Revenue Sharing 338,454 317,513 385,706 394,963 (9,257) -2.3% 68,193 21.5% Revenue Sharing 1 - - - - - Total Aeronautical Revenues 338,455 317,513 385,706 394,963 (9,257) -2.3% 68,193 21.5% Total Aeronautical Expenses 219,878 203,573 268,206 270,850 2,643 1.0% 64,633 31.7% Aeronautical NOI 118,577 113,940 117,500 124,113 (6,613) -5.3% 3,560 3.1% 14 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 Airline Rate Base Cost Drivers Impact on Aero Revenues 2021 2022 2022 Budget vs Forecast $ in 000's Actual Budge t Fore cas t $ % O&M (1) 198,065 263,372 260,645 (2,727) -1.0% Federal Relief Grants O&M (2,571) (12,700) (9,300) 3,400 -26.8% Net O&M 195,494 250,672 251,345 673 0.3% Debt Service Before Offsets 187,134 235,151 234,475 (676) -0.3% Debt Service PFC Offset (54,076) (79,803) (79,903) (100) 0.1% Federal Relief Grants Debt Service (58,878) (58,975) (68,180) (9,205) 15.6% Net Debt Service 74,180 96,373 86,392 (9,981) -10.4% Amortization 32,511 33,699 33,699 - 0.0% Space Vacancy (1,102) (1,613) (1,585) 28 -1.7% TSA Operating Grant and Other (687) (758) (735) 23 -3.1% Rate Base Revenues 300,397 378,373 369,116 (9,257) -2% Commercial area 16,702 16,590 16,590 - 0% Total Aero Revenues 317,099 394,963 385,706 (9,257) -2% (1) O&M, Debt Service Gross, and Amortization do not include commercial area costs or the international incentive expenses 2022 Forecast to 2022 Budget O&M $2.7M lower due primarily to delays in Airline Realignment work and IAF opening later, partially offset by small increases in Airfield Movement and Terminal cost centers. Federal Relief Grants Aero Portion: o Payroll Impact (O&M) Reducing $9.3M from Rate Base o Debt Service Impact Reducing $68.2M from Rate Base 15 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 Non-Aero Business Unit Summary YTD Actuals Fav(UnFav) Actual vs. Budget Incr/(Decr) Non-Aeronautical NOI 2020 YTD 2021 YTD 2022 YTD 2022 YTD Variance Change from 2021 ($ in 000's) Actual Actual Actual Budget $ % $ % Non-Aeronautical Revenues Public Parking 16,720 9,330 18,872 17,121 1,752 10.2% 9,542 102.3% Rental Cars 6,928 3,484 7,272 9,355 (2,083) -22.3% 3,787 108.7% Ground Transportation 3,931 1,459 3,551 3,536 14 0.4% 2,091 143.3% Airport Dining & Retail 10,680 4,865 9,794 (10,448) 20,243 -193.7% 4,929 101.3% Other 11,697 7,791 11,455 11,351 104 0.9% 3,664 47.0% Total Non-Aeronautical Revenues 49,956 26,930 50,944 30,915 20,029 64.8% 24,013 89.2% Total Non-Aeronautical Expenses 24,307 23,947 26,983 29,994 3,011 10.0% 3,036 12.7% Non-Aeronautical NOI 25,649 2,984 23,961 921 23,040 2501.5% 20,977 703.1% Less: CFC Surplus - - - - - - Adjusted Non-Aeronautical NOI 25,649 2,984 23,961 921 23,040 2501.5% 20,977 703.1% Debt Service - - - - - - Net Cash Flow 25,649 2,984 23,961 921 23,040 2501.5% 20,977 703.1% Non-Aeronautical 2022 YTD Actuals vs. 2022 YTD Budget Net Operating Income is ($23M or 2501.5%) favorable to budget driven by: o Timing of $21.4M of Concessionaire Relief Grant assumed in the Airport, Dining, and Retail (ADR) budget in Q1 resulting in lower budgeted revenues at end of Q1, while the actuals for the corresponding Concessionaire Relief Grant has not been realized yet. Without the Concessionaire Relief Grant in the budget, the actuals would be closer aligned to budget in total Non-Aeronautical revenues. o Public Parking revenue is improving and more closely aligned with changes in passenger volumes, while there is slower recovery in the Commercial Management operations, particularly in ADR due to lower enplanements, coupled with the delay of the Salty's Restaurant opening is driving ADR revenue down in 1Q. o Non-Aeronautical operating expenses were ($3M or 10%) favorable. Non-Aeronautical 2022 YTD Actuals vs. 2021 YTD Actuals Net Operating Income was ($21M or 703.1%) higher than 2021 driven by: o Increasing passenger levels and activity when compared to Q1 2021 when it was still early in the first year of recovery from the pandemic. 16 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 Non-Aero Business Unit Summary - YE Forecast Fav(UnFav) Actual vs. Budget Incr/(Decr) Non-Aeronautical NOI 2020 2021 2022 2022 Variance Change from 2021 ($ in 000's) Actual Actual Fo recast Budget $ % $ % Non-Aeronautical Revenues Public Parking 34,502 64,104 81,028 81,028 - 0.0% 16,924 26.4% Rental Cars 16,637 34,740 52,138 52,138 - 0.0% 17,398 50.1% Ground Transportation 6,557 11,947 18,242 18,242 - 0.0% 6,295 52.7% Airport Dining & Retail 25,418 35,565 37,170 37,829 (660) -1.7% 1,605 4.5% Other 33,359 37,463 50,827 51,582 (756) -1.5% 13,364 35.7% Total Non-Aeronautical Revenues 116,473 183,819 239,404 240,820 (1,415) -0.6% 55,586 30.2% Total Non-Aeronautical Expenses 109,802 90,644 128,625 126,773 (1,852) -1.5% 37,981 41.9% Non-Aeronautical NOI1 6,671 93,175 110,779 114,047 (3,268) -2.9% 17,604 18.9% Less: CFC Surplus (6,834) - - - - - Adjusted Non-Aeronautical NOI (163) 93,175 110,779 114,047 (3,268) -2.9% 17,604 18.9% Debt Service (33,065) (27,096) (24,474) (33,372) 8,898 -26.7% 2,622 -9.7% Net Cash Flow (33,229) 66,079 86,305 80,676 5,630 7.0% 20,227 30.6% Non-Aeronautical 2022 Forecast vs. 2022 Budget Non-Aeronautical net operating income is forecasted to be (-$3.3M or -2.9%) unfavorable primarily in Commercial Management where ADR revenue is forecasted unfavorable to budget driven by enplanements down (1.4%), the delay in the opening of the new Salty's Restaurant, partially offset by slightly lower average percentage rent to the Port. Duty Free is forecasted unfavorable ($324K) as this group continues to suffer from a slow recovery in international enplanements as travel restrictions continue and we see sluggish international flying. This is compounded by lower sales per enplanement and lower average percentage rent rate to the Port. Food & Beverage is forecasted to be ($781K) unfavorable to budget due to the delay of the Salty's Restaurant opening from Q1 2022 to Q3 2022. Non-Aeronautical 2022 Forecast vs. 2021 Actuals Net Operating Income for 2022 is forecasted to be ($17.6M or 18.9%) higher compared to prior year due to passenger levels improving with a forecast of being down 7.6% compared to 2019 vs. 29.6% down in 2021 compared to 2019. 17 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 D. CAPITAL RESULTS Capital Variance 2022 2022 2022 2022 Bud vs. Fcst YTD Year-End Budget POF $ % $ in 000's Actual Forecast North MT Redevelopment (1) 2,390 80,444 97,849 38,575 17,405 17.8% C1 Building Floor Expansion (2) 2,778 20,746 31,576 50,155 10,829 34.3% Checkpoint 1 Relocation (3) 365 4,778 14,122 20,388 9,344 66.2% Concourse A Expansion (4) 957 8,816 17,138 13,986 8,323 48.6% SSAT Infrastructure HVAC (5) 533 1,467 7,719 6,077 6,252 81.0% Checked Baggage (6) 25,937 125,412 130,600 104,000 5,188 4.0% Upgrades STS Train Control (7) 261 13,222 17,278 15,117 4,056 23.5% Conc HVAC renewal & replace (8) - 374 4,326 2,537 3,953 91.4% NSAT Renovation (9) 1,196 15,560 19,270 27,347 3,710 19.3% Apartment Sound Insulation (10) 59 2,933 6,270 4,656 3,336 53.2% GSE Electrical Chrg Stations (11) 612 6,031 9,209 9,411 3,178 34.5% International Arrivals Facility (12) 4,356 19,556 16,700 20,509 (2,856) -17.1% All Other 18,898 198,272 223,284 297,864 25,011 11.2% Subtotal 58,342 497,612 595,341 610,622 97,729 16.4% CIP Cashflow Mgmt Reserve - (47,795) (67,424) (95,810) (19,629) 29.1% Total Spending 58,342 449,817 527,917 514,812 78,100 14.8% Note: POF (Plan of Finance) is the total estimated during the budget process. 1. Underspent due to the delay in executing TRA 1, which was not fully executed until December 2021. 2. Commission Authorization delays, due to re-evaluating financial impacts with COVID-19. 3. Design required more effort than originally projected delaying start of construction. 4. Potential delay due to recent request from the tenant. 5. Returned $5M savings in Q1 and design delays have caused underspending. 6. SSAT work has been delayed by approximately 6 months due to delay in IAF opening. 7. Significant 4-5 month delay in negotiating/executing contract with the STS manufacturer and revised schedule has deferred cashflows. 8. Delayed start of the project due to PM resources. 9. Under-run due to delays finalizing Dec 2021 Contractor invoice, final construction contract audit and reduced Port staff engagement. 10. Clarity on project scope shifts cost out and identifies likely savings. 11. Contract for Phase 2B came under estimate. 12. Flood recovery costs added to 2022. Opening delayed from March to May. Extended LOE for closeout & litigation support for PM/CM teams. 18 III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 III. MARITIME DIVISION FINANCIAL SUMMARY (Excludes Pension Adjustments) Fav (UnFav) Incr (Decr) 2020 2021 2022 2022 Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual Forecast B udg e t $ % $ % Total Revenues 42,111 48,738 67,920 59,137 8,783 15% 19,182 39% Total Operating Expenses 52,357 47,784 58,862 57,865 (997) -2% 11,078 23% Net Operating Income (10,246) 954 9,058 1,272 7,786 -612% 8,104 -849% NOI Including Pension Adj (8,117) 7,616 9,058 1,272 6,789 -534% 1,442 19% Capital Expenditures 19,698 18,923 21,949 23,521 1,572 7% 3,026 16% 2022 Forecast vs. 2022 Budget Operating Revenues are forecasted $8.8M higher than budget driven by occupancy rates and the expectation of a full cruise season. Operating Expenses forecasted $1.0M unfavorable to budget from capital to expense of the Gateway Building at Fishermen's Terminal. Net Operating Income forecasted $7.8M favorable to budget. Capital Spending forecasted at 93.3% of $23.5M budget. 2022 Forecast vs. 2021 Actuals Operating Revenues expected $19.2M higher than 2021 due to full season of cruise business. Operating Expenses forecasted $11.1M higher than 2021 actual driven by higher payroll cost and elimination of pandemic austerity measures. Net Operating Income forecasted $8.1M above 2021 actual. Net Operating Income before Depreciation by Business Fav (UnFav) Incr (Decr) 2021 YTD 2022 YTD 2022 YTD Actual vs. Budget Change from 2020 Variance $ in 000's Actual Actual B udg e t $ % $ % Ship Canal Fishing & Operations (372) (494) (774) 280 36% (122) -33% Elliott Bay Fishing & Commercial Operations (261) (351) (613) 262 43% (90) NA Recreational Boating 304 259 60 200 333% (44) -15% Cruis e (2,517) (2,819) (3,163) 344 11% (301) -12% Gra in 1,431 1,572 1,390 182 13% 140 10% Maritime Portfolio 88 (393) (1,062) 669 63% (481) 546% All Other (71) 8 120 (112) 93% 79 -111% Total Maritime (1,398) (2,218) (4,043) 1,826 45% (820) -59% 19 III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 A. KEY PERFORMANCE METRICS Grain Volume Metric Tons in 000's Cruise Passengers in 000's 20 III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 B. OPERATING RESULTS Fav (UnFav) Incr (Decr) 2020 YTD 2021 YTD 2022 YTD 2022 YTD Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual Actual B udg e t $ % $ % Ship Canal Fishing & Operations 1,082 1,067 1,180 1,076 104 10% 113 11% Elliott Bay Fishing & Commercial Operations 1,418 1,136 1,308 1,145 163 14% 172 15% Recreational Boating 3,134 3,125 3,443 3,377 66 2% 318 10% Cruis e 114 48 (66) 59 (125) -212% (114) -238% Gra in 1,048 1,719 1,874 1,753 122 7% 155 9% Maritime Portfolio Management 2,541 2,443 2,765 2,554 211 8% 322 13% Other 3 1 6 5 2 NA 5 598% Total Revenue 9,340 9,539 10,511 9,969 542 5% 972 10% Expenses Maritime (Excl. Maint) 3,724 3,576 3,957 3,825 (132) -3% 381 11% Economic Development 1,314 1,059 1,589 1,775 186 10% 530 50% Total Direct 5,038 4,635 5,546 5,600 54 1% 910 20% Maintenance Expenses 2,671 2,357 2,720 3,372 652 19% 363 15% Envir Services & Planning 447 359 140 601 461 77% (218) -61% Seaport Finance & Cost Recovery 227 237 210 257 47 18% (28) -12% Seaport Project Management 43 76 171 149 (22) -15% 95 124% Total Support Services 3,387 3,029 3,241 4,380 1,139 26% 212 7% IT 689 651 751 798 48 6% 100 15% Police Expenses 842 722 752 884 132 15% 30 4% External Relations 305 281 365 414 49 12% 83 30% Other Central Services 1,340 1,549 1,987 1,873 (114) -6% 439 28% Aviation Division / Other 59 71 88 64 (24) -38% 18 25% Total Central Services / Other 3,236 3,273 3,943 4,033 90 2% 670 20% Total Expense 11,661 10,937 12,729 14,013 1,283 9% 1,792 16% NOI Before Depreciation (2,321) (1,398) (2,218) (4,043) 1,826 45% (820) -59% Depreciation 4,395 4,464 4,464 4,219 (244) -6% (0) 0% NOI After Depreciation (6,715) (5,862) (6,682) (8,263) 1,581 19% (820) -14% 2022 YTD Actuals vs. 2022 YTD Budget Operating Revenues were $542K higher than budget driven by: o Ship Canal favorable $104K from higher occupancy and favorable utility sales. o Elliott Bay Fishing higher by $163K due to favorable moorage and heavy lift truck rental. o Recreational Boating 66K favorable from occupancy and electrical sales. o Cruise $125K lower due to invoice timing. o Grain $122K favorable from higher volumes. o Maritime Portfolio Management $211 higher from favorable temporary leases. Operating Expenses were $1,283K lower than budget: o Direct Expenses were $54K lower than budget Rec Boating $11K higher than budget due to utilities expenses. Ship Canal Fishing and Operations $79K higher due to utilities expenses. Elliot Bay Fishing and Commercial $95K over from litigation reserve. Cruise $203K under from timing of outside services and open FTE. Maritime Security $20K lower than budget. Maritime Marketing $116K below budget due to timing of spend. Maritime Portfolio Management $192K below budget due to timing tenant improvements. Divisional contingency open headcount vacancy factor created a $314K unfavorable variance. All other Direct Expenses net to $22K under budget. o Total Support Services were $1,139K favorable to budget due to significant open FTEs in both Maintenance and Environmental along with saving from project deferrals. 21 III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 o Total Central Services / Other were $90K favorable to budget. Net Operating Income was $1,826K favorable to budget. 2022 YTD Actuals vs. 2021 YTD Actuals Operating Revenues were $1.0M higher than 2021 due to increased rates at marinas and commercial properties. Operating Expenses were $1.8M higher than 2021 actual driven by higher utilities, increased wage rates, and removal of austerity measures. Net Operating Income was $.8M lower than 2021 actual. Fav (UnFav) Incr (Decr) 2020 2021 2022 2022 Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual Forecast B udg e t $ % $ % Ship Canal Fishing & Operations 4,704 4,240 4,361 4,211 150 4% 121 3% Elliott Bay Fishing & Commercial Operations 5,752 5,618 4,917 4,717 200 4% (701) -12% Recreational Boating 12,611 12,851 13,831 13,731 100 1% 980 8% Cruis e 3,824 9,517 28,574 20,574 8,000 39% 19,057 200% Gra in 5,142 6,112 6,022 5,900 122 2% (90) -1% Maritime Portfolio Management 10,074 10,392 10,197 9,986 211 2% (196) -2% Other 4 7 19 19 0 NA 12 164% Pension Revenue Adjustment 0 (408) 0 0 0 NA 408 NA Total Revenue 42,111 48,331 67,920 59,137 8,783 15% 19,590 41% Expenses Maritime (Excl. Maint) 16,676 13,951 17,672 16,022 (1,650) -10% 3,721 27% Economic Development 4,549 4,559 6,065 6,065 0 0% 1,506 33% Total Direct 21,225 18,510 23,737 22,087 (1,650) -7% 5,227 28% Maintenance Expenses 12,353 11,326 14,399 14,624 225 2% 3,073 27% Envir Services & Planning 2,947 2,018 2,317 2,542 225 9% 300 15% Seaport Finance & Cost Recovery 1,072 1,163 1,096 1,096 0 0% (67) -6% Seaport Project Management 1,144 342 712 712 0 0% 370 108% Total Support Services 17,518 14,849 18,525 18,975 450 2% 3,676 25% IT 2,888 2,695 3,349 3,349 0 0% 655 24% Police Expenses 3,131 3,064 3,380 3,495 115 3% 316 10% External Relations 1,242 1,222 1,357 1,654 297 18% 135 11% Other Central Services 6,035 7,109 8,230 8,021 (209) -3% 1,121 16% Aviation Division / Other 318 336 285 285 0 0% (51) -15% Total Central Services / Other 13,614 14,426 16,601 16,804 203 1% 2,175 15% Total Expense before Pension Adjustment 52,357 47,784 58,862 57,865 (997) -2% 11,078 23% Pension Expense Adjustment (2,129) (7,070) 0 0 0 NA 7,070 -100% Total Expense 50,228 40,714 58,862 57,865 (997) -2% 18,148 45% NOI excluding Pension Adjustments (10,246) 954 9,058 1,272 7,786 612% 8,104 849% NOI Before Depreciation (8,117) 7,616 9,058 1,272 7,786 612% 1,442 -19% Depreciation 17,624 17,718 17,510 17,510 0 0% (208) -1% NOI After Depreciation (25,741) (10,101) (8,452) (16,238) 7,786 48% 1,650 16% 2022 Forecast vs. 2022 Budget Operating Revenues are forecasted $8.8M higher than budget: o Cruise $8.0M higher based on more sailings than budgeted with the reduction of COVID-19 issues. o Fishing, Commercial, and Boating Marinas are $450K higher due to better pier utilization and occupancy. Operating Expenses forecasted $1.0M unfavorable to budget from a capital to expense classification of the discontinued Fishermen's Terminal Gateway building. Net Operating Income Planned $7.8M favorable to budget. 22 III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 2022 Forecast vs. 2021 Actuals (Excludes Pension Adjustment) Operating Revenues expected $20.0M higher than 2021 with resumption of Cruise, higher Grain volumes, and rate increases. Operating Expenses forecasted $11.1M higher than 2021 actual driven primarily by increased represented and non-represented wage rates. Net Operating Income forecasted $8.1M better than 2021 actual. C. CAPITAL RESULTS 2022 Year- 2022 YTD 2022 Budget vs Forecast End 2022 POF Actual Budge t Fore cas t $ % $ in 000's P66 Shore Power 45 5,342 7,582 7,500 2,240 30% T117 Restoration 1,283 5,208 5,346 2,502 138 3% MD Video Camera Pro 0 1,400 1,400 1,400 0 0% T91 Berth 6&8 Redev 111 1,019 1,235 1,334 216 17% FT Maritime Innovation Center 132 1,222 1,222 1,317 0 0% FT ADA Compliance 68 1,138 1,138 1,385 0 0% SBM Dock X Pier Replacement 48 975 1,000 833 25 3% P90E Timber Pile Caps 9 55 909 837 854 94% MD Fleet 200 2,870 2,670 2,085 (200) -7% MD Small Projects 126 2,396 2,445 2,246 49 2% All Other Project 334 6,483 7,371 11,544 888 12% Subtotal 2,356 28,108 32,318 32,983 4,210 13% CIP Cashflow Mgmt Reserve 0 (6,159) (8,797) (9,775) (2,638) 30.0% Total Maritime 2,356 21,949 23,521 23,208 1,572 6.7% Note: POF (Plan of Finance) is the total estimated during the budget process. Comments on Key Projects P66 Shore Power Significant project schedule and budget reset to account for permitting concerns, continuing supply chain delays, and construction cost escalations. P90E Timber Pile Caps Construction delayed for one year due to Construction Management resource constraint. 23 IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL SUMMARY Fav (UnFav) Incr (Decr) 2020 2021 2022 2022 Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual Forecast B udg e t $ % $ % Total Revenues 9,470 9,294 14,470 18,769 (4,299) -23% 5,176 56% Total Operating Expenses 21,382 20,560 25,332 28,301 2,969 10% 4,773 23% Net Operating Income (11,912) (11,266) (10,862) (9,532) (1,330) -14% 404 -4% NOI Including Pension Adj (11,141) (8,870) (10,862) (9,532) 1,639 17% (1,992) 22% Capital Expenditures 9,314 4,311 10,811 10,483 (328) -3% 6,500 151% 2022 Forecast vs. 2022 Budget Operating Revenues forecasted to $4.3M unfavorable to budget due to lower volumes at the Conference & Event Center. Operating Expenses $3.0M favorable to budget due to variable cost impact of lower Conference Center volumes ($2.8M), delayed hiring, and Maintenance Expenses. Net Operating Income forecasted at $1.3M below budget. Capital Spending forecasted at 103.1% of $10.5M budget. 2022 Forecast vs. 2021 Actuals Operating Revenues forecasted $5.2 M higher than 2021 with $4.1M increase in Conference & Event Center along with increased concession revenue at the Bell Street garage. Operating Expenses $4.8M higher than 2021 due to payroll increases and Conference & Event Center volumes. Net Operating Income forecasted $.4M better than 2021 actual, but $2.0M worse when factoring in the pension adjustments. Net Operating Income before Depreciation by Business Fav (UnFav) Incr (Decr) 2021 YTD 2022 YTD 2022 YTD Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual B udg e t $ % $ % Portfolio Management (845) (1,056) (1,166) 109 9% (211) -25% Conference & Event Centers (1,030) (928) (953) 24 3% 102 10% Tourism (169) (146) (289) 142 49% 23 13% EDD Grants 21 26 (113) 138 123% 5 23% Env Grants/Remed Liab/ERC (23) (364) 83 (447) -538% (340) -1467% Total Econ Dev (2,047) (2,469) (2,436) (32) -1% (422) -21% 24 IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 A. KEY PERFORMANCE METRICS Building Occupancy by Location: 100% 100%100% 100% 100%100% 100% 100%100% 100% 100%100% 100% 95% 90% 88% 88% Central Harbor 87% 86% T-91 Uplands 85% Marina Office & Retail 82% 80% 80% T-91 Industrial 80% 78% T-106 Warehouse 75% 70% Q2 2021 Q3 2021 Q4 2021 Q1 2022 Key Building Vacancies Central Harbor T-102 Corporate Center mainly Suite A-205 (9,061sf), Suite A-105 (4,191sf), Suite A-203 (3,745sf), and Suite A-104 (2,212sf). World Trade Center West Suite 130 (11,388sf) and Suite 230 (5,777sf). Marina Office & Retail Maritime Industrial Center mainly Building A1 Suite 300 (15,651sf) and Suite 301 (11,657sf). Fishermen's Terminal mainly Building C-2 Suite D (4,967sf) and Building C-15 Suite 315 (4,811sf). 25 IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 B. OPERATING RESULTS Fav (UnFav) Incr (Decr) 2020 YTD 2021 YTD 2022 YTD 2022 YTD Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual Actual B udg e t $ % $ % Revenue 2,163 1,875 1,962 1,991 (29) -1% 87 5% Conf & Event Centers 1,115 127 618 1,347 (729) -54% 491 387% Total Revenue 3,277 2,002 2,580 3,338 (758) -23% 578 29% Expenses Portfolio Management 899 839 1,011 915 (96) -10% 172 21% Conf & Event Centers 1,557 545 888 1,624 735 45% 343 63% P69 Facilities Expenses 55 47 51 68 17 25% 4 8% RE Dev & Planning 41 48 75 49 (26) -53% 27 57% EconDev Expenses Other 291 187 249 176 (73) -42% 62 33% Maintenance Expenses 635 847 809 978 169 17% (38) -5% Maritime Expenses (Excl Maint) 244 235 229 302 72 24% (6) -3% Total EDD & Maritime Expenses 3,722 2,748 3,313 4,111 798 19% 565 21% Diversity in Contracting 25 26 26 32 5 17% 1 3% Tourism 207 167 496 281 (215) -76% 329 197% EDD Grants (57) (21) (26) 113 138 123% (5) 22% Total EDD Initiatives 175 172 497 426 (71) -17% 325 189% Environmental & Sustainability 8 5 5 6 1 16% 1 13% Police Expenses 58 48 49 58 9 15% 1 2% Other Central Services 1,244 1,041 1,142 1,143 1 0% 101 10% Aviation Division 29 35 43 31 (12) -39% 8 24% Total Central Services & Aviation 1,339 1,129 1,240 1,238 (1) 0% 111 10% Envir Remed Liability 0 0 0 0 0 NA 0 NA Total Expense 5,236 4,049 5,049 5,775 726 13% 1,000 25% NOI Before Depreciation (1,959) (2,047) (2,469) (2,436) (32) -1% (422) -21% Depreciation 909 958 938 891 (48) -5% (19) -2% NOI After Depreciation (2,867) (3,005) (3,407) (3,327) (80) -2% (403) -13% 2022 YTD Actuals vs. 2022 YTD Budget Operating Revenue were $758K unfavorable to budget due primarily to lower than anticipated Conference and Event Center from a slow recovery threatened by COVID-19 variants. Operating Expenses were $726K favorable to budget: o Conference and Event Center $735K favorable from lower activity. o Maintenance Expenses $169K favorable due to open positions. o EDD Initiatives $71K below budget. o All other expenses net to $107K below budget. Net Operating Income was $32K below budget. 2022 YTD Actuals vs. 2021 YTD Actuals Operating Revenues were $578K higher than 2021 actual Operating Expenses were $1,000K higher than 2021 actual: o Conference and Event Centers $343K higher than 2021 due to variable costs associated with higher Conference and Event Center volumes. o Maintenance Expenses $38K lower than 2021 due to open positions. o Central Services $111K higher than 2021. o All other Expenses net to $584K higher than 2021. Net Operating Income was $422K below 2021 actual. 26 IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 Fav (UnFav) Incr (Decr) 2020 2021 2022 2022 Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual Forecast B udg e t $ % $ % Revenue 7,808 7,384 8,470 8,470 0 0% 1,086 15% Conf & Event Centers 1,662 1,910 6,000 10,299 (4,299) -42% 4,090 214% Total Revenue 9,470 9,294 14,470 18,769 (4,299) -23% 5,176 56% Expenses Portfolio Management 3,143 3,737 3,905 3,905 0 0% 168 5% Conf & Event Centers 4,440 3,124 6,318 9,018 2,700 30% 3,194 102% P69 Facilities Expenses 268 268 228 228 0 0% (39) -15% RE Dev & Planning 230 231 246 246 0 0% 15 7% EconDev Expenses Other 974 736 842 842 0 0% 106 14% Maintenance Expenses 3,055 3,769 4,101 4,201 100 2% 332 9% Maritime Expenses (Excl Maint) 1,117 862 1,279 1,279 0 0% 417 48% Total EDD & Maritime Expenses 13,227 12,727 16,919 19,719 2,800 14% 4,193 33% Diversity in Contracting 162 253 168 168 0 0% (85) -34% Tourism 991 1,877 1,750 1,750 0 0% (127) -7% EDD Grants 778 889 1,500 1,500 0 0% 611 69% Total EDD Initiatives 1,931 3,019 3,418 3,418 0 0% 399 13% Environmental & Sustainability 33 24 55 59 4 7% 31 128% Police Expenses 215 205 221 229 8 3% 16 8% Other Central Services 5,815 4,408 4,592 4,749 157 3% 184 4% Aviation Division 161 177 128 128 0 0% (49) -28% Total Central Services & Aviation 6,225 4,814 4,996 5,165 169 3% 181 4% Total Expense before Pension Adjustment 21,382 20,560 25,332 28,301 2,969 10% 4,773 23% Pension Expense Adjustment (771) (2,396) 0 0 0 NA 2,396 -100% Total Expense 20,611 18,164 25,332 28,301 2,969 10% 7,168 39% NOI Before Depreciation (11,141) (8,870) (10,862) (9,532) (1,330) -14% (1,992) -22% Depreciation 3,611 3,841 3,741 3,741 0 0% (100) -3% NOI After Depreciation (14,752) (12,711) (14,603) (13,273) (1,330) -10% (1,892) -15% 2022 Forecast vs. 2022 Budget Operating Revenues forecasted to $4.3M unfavorable to budget due to lower volumes at the Conference & Event Center. Operating Expenses $3.0M favorable to budget due to variable cost impact of lower Conference Center volumes ($2.8M), delayed hiring, and Maintenance Expenses. Net Operating Income forecasted at $1.3M below budget. 2022 Forecast vs. 2021 Actuals (Excludes Pension Adjustments) Operating Revenues forecasted $5.2M higher than 2021 with $4.1M increase in Conference & Event Center along with increased concession revenue at the Bell Street garage. Operating Expenses $4.8M higher than 2021 due to payroll increases and Conference & Event Center volumes. Net Operating Income forecasted $.4M better than 2021 actual. 27 IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 C. CAPITAL RESULTS 2022 Year- 2022 YTD 2022 2022 End Budget vs Forecast Actual Budge t POF Fore cas t $ in 000's $ % P69 Underdock Utility Rpl 64 2,678 2,678 2,600 0 0% CW Bridge Elev Modernization 167 2,352 2,352 2,000 0 0% P66 Roof Upgrades 339 1,553 1,559 752 6 0% T91 Uplands Dev Phase 1 20 1,513 1,404 1,484 (109) -8% WTCW Roof Replacement 22 1,099 1,099 1,570 0 0% WTC HVAC Replacement 537 1,020 1,020 2,739 0 0% Tenant Improvements -Capital 0 501 501 300 0 0% BHICC Interior Modernization 8 168 310 4 142 46% EDD Technology Projects 0 250 250 250 0 0% EDD Small Projects 11 670 669 620 (1) 0% All Other Projects 11 1,055 1,046 1,750 (9) -1% Subtotal 1,179 12,859 12,888 14,069 29 0% CIP Cashflow Mgmt Reserve 0 (2,048) (2,405) (3,554) (357) 15% Total Economic Development 1,179 10,811 10,483 10,515 (328) -3% Note: POF (Plan of Finance) is the total estimated during the budget process. Comments on Key Projects As of Q1, 2022 Economic Development Capital Spending is forecasted to slightly exceed budget. Favorable resolution of claim at BHICC offset by increased cost on all other projects. 28 V. CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 V. CENTRAL SERVICES DIVISION FINANCIAL SUMMARY Fav (UnFav) Incr (Decr) 2020 YTD 2021 YTD 2022 YTD 2022 YTD Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual Actual Budget $ % $ % Total Operating Revenues 907 956 165 47 118 253.6% (791) -82.8% Core Central Support Services 19,359 18,743 21,471 22,691 1,220 5.4% 2,728 14.6% Police 7,908 6,748 6,756 8,200 1,444 17.6% 8 0.1% Engineering/PCS 2,158 1,965 1,923 2,793 869 31.1% (41) -2.1% Total Operating Expenses 29,425 27,455 30,150 33,683 3,533 10.5% 2,695 9.8% 2022 YTD Actuals vs. 2022 YTD Budget Operating Revenues favorable by $118K due primarily to Police forfeiture. Operating Expenses $3.5M favorable to budget mainly due to staffing vacancies, and project spending delays offset by lower charges to Capital Projects. 2022 YTD Actuals vs. 2021 YTD Actuals Operating Revenues $791K below 2021 mainly due to higher Police forfeiture seizures in 2021. Operating Expenses $2.7M higher than 2021 mainly due to higher Payroll, Equipment Expense, Outside Services, Travel & Other Employee Expenses, and General Expenses. A. BUSINESS EVENTS Port partnered with WorkSource to host the Job and Resource Fair for newly arrived Afghan refugees Developed and implemented an electronic daily self-check health survey for consultants/contractors Reviewed and finalized the budget for the WMBE goals Received the GFOA Financial Reporting Excellence Award for the 16th consecutive year Finalized the banking services procurement; ongoing work to ensure smooth implementation/transition Conducted the Equitable Disruption event and Strengths, Weaknesses, Opportunities, and Threats (SWOT) training Designed and led a Rapid Improvement project to assist with ACH Vendor Payment Improvements Hosted the International Arrivals Facility VIP and online "reveal" events Completed the Evidence Management System that will allow Port police to efficiently manage physical/digital evidence and property associated with calls for service, incidents, and cases Police Assessment Implementation Team (PAIT) reviewed the 52 recommendations highlighted by the consultant and identified resources for implementation Acquired a new boat to assist the POS Police Marine Unit in providing required waterside security Communicated the results of the port-wide Equity Assessment and Women of Color Assessment; shared the equity performance goal requirements and new hiring process requirements Physical Completion issued for the Pier 66 Interior Modernization and South Satellite Infrastructure Upgrade projects Substantial completion achieved on: Main Terminal Space Conversion Phase II, ADA access controls at C4 area, and Concourse Info Hub 29 V. CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 B. KEY PERFORMANCE METRICS YTD YTD YTD Century Agenda Strategic Objectives 2020 2021 2022 Responsibly Invest in the Economic Growth of the Region and all its Communities A. Job seekers placed in jobs at SEA Airport through the Employment Center 366 166 300 B. Number of SEA Airport tenants supported in finding employees 56 49 59 C. Employment Center training completions 107 48 87 D. K-12 Career Connected Learning: WFD engagement with teachers/faculty 1,800 0 0 E. Community members entering employment in construction, maritime and 0 9 10 environmental sustainability F. Number of Job Openings created 201 66 100 G. Job applications received 2,855 2,276 2722 H. Number of job interviews conducted 351 171 487 I. Number of new employees hired 95 24 122 J. Number of interns 25 1 1 K. Number of Veteran Fellows 0 0 0 L. Number of employees participating in Tuition Reimbursement 27 40 36 Become a Model for Equity, Diversity and Inclusion A. Employee participation in OEDI programming (Caucuses, Book Clubs, N/A 178 63 Town Halls, etc.) B. Port employees and supervisors completing required racial equity N/A N/A 548 orientations/trainings. Be a Highly Effective Public Agency A. Central Services costs as a % of Total Operating Expenses 27.8% 28.3% 28.1% B. Investment portfolio earnings versus the benchmark (the Bank of America 2.16%/ 1.33%/ 0.81%/ Merrill Lynch 1-3 Year US Treasury & Agency Index) 0.21% 0.19% 2.22% C. Comply with Public Disclosure Act and respond in a timely manner 135 153 227 D. Percent of annual audit work plan completed each year 100% 100% 100% E. Employee Development Class Attendees/Structured Learning 1,100 492 573 F. Total Recordable Incident Rate (previous Occupational Injury Rate) 4.28 5.49 2.33 G. Lost Work Day Rate (previously Days Away Severity Rate) 35.38 32.69 19.18 H. Customer Survey for Police Service Excellent or Above Average 84% 100% 90% 30 V. CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 C. OPERATING RESULTS Financial Summary (Year-End Forecast) Fav (UnFav) Incr (Decr) 2020 2021 2022 2022 Actual vs. Budget Change from 2021 Variance $ in 000's Actual Actual Forecast Budget $ % $ % Total Revenues 2,512 (233) 334 186 148 79.3% 568 -243.2% Executive 2,263 2,051 2,759 2,738 (21) -0.8% 708 34.5% Commission 1,755 1,773 2,454 2,486 32 1.3% 681 38.4% Legal 6,290 7,054 5,248 5,105 (143) -2.8% (1,806) -25.6% External Relations 7,481 6,827 9,438 10,874 1,436 13.2% 2,611 38.2% Equity Diversity and Inclusion 4,676 4,937 6,306 5,756 (550) -9.6% 1,369 27.7% Human Resources 8,380 8,675 13,141 13,126 (15) -0.1% 4,465 51.5% Labor Relations 1,286 1,110 1,402 1,444 41 2.9% 293 26.4% Internal Audit 1,540 1,296 2,608 1,868 (740) -39.6% 1,312 101.2% Accounting & Financial Reporting Services 8,165 6,967 9,326 9,418 92 1.0% 2,358 33.9% Information & Communication Technology 24,732 19,944 27,597 27,597 () 0.0% 7,653 38.4% Information Security 1,656 1,328 2,311 2,449 138 5.6% 983 74.0% Finance & Budget 2,177 1,801 2,478 2,525 47 1.9% 677 37.6% Business Intelligence 1,181 904 1,930 1,953 23 1.2% 1,026 113.6% Risk Services 3,349 4,047 4,890 4,688 (202) -4.3% 842 20.8% Office of Strategic Initiatives 934 713 1,156 1,231 75 6.1% 443 62.2% Central Procurement Office 4,280 3,633 6,479 6,678 200 3.0% 2,846 78.3% Contingency (190) (123) (3,763) (5,000) (1,238) 24.8% (3,640) 2959.8% Core Central Support Services 79,956 72,936 95,759 94,936 (823) -0.9% 22,823 31.3% Police 27,538 17,194 31,686 32,746 1,060 3.2% 14,492 84.3% Total Before Cap Dev & Environment 107,494 90,130 127,445 127,682 237 0.2% 37,315 41.4% Capital Development Engineering 4,959 1,626 6,935 7,428 493 6.6% 5,309 326.4% Port Construction Services 4,138 3,321 4,499 4,906 407 8.3% 1,178 35.5% Sub-Total 9,096 4,948 11,434 12,334 900 7.3% 6,486 131.1% Environment & Sustainability Environment & Sustainability 692 676 1,660 1,741 81 4.7% 984 145.5% Sub-Total 692 676 1,660 1,741 81 4.7% 984 145.5% Industrial Development Corporation - - - - - 0.0% - 0.0% Capital to Expense 193 - - - - 0.0% - 0.0% Total Expenses 117,476 95,753 140,538 141,756 1,218 0.9% 44,785 46.8% 31 V. CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 2022 Forecast vs. 2022 Budget Operating Expenses for 2022 are forecasted to be $1.2M below Budget due primarily to: Executive unfavorable variance of ($21K) primarily due to higher Payroll. Commission favorable variance of $32K due to lower Payroll $45K offset by higher General Expenses of ($15K). Legal unfavorable variance of ($143K) due to higher Outside Services ($165K) offset by lower Payroll of $23K. External Relations favorable variance of $1.4M primarily due to reduced Outside Services of $1.4M and Promotional Expenses of $101K offset by higher Payroll of ($46K). Equity, Diversity, and Inclusion unfavorable variance of ($550K) primarily due to the increase of Property Rentals of ($1.1M) offset by lower Outside Services of $538K. Human Resources unfavorable variance of ($15K) primarily due to higher Payroll of ($134K) and General Expenses ($46K) offset by lower Equipment $42K, Outside Services $58K and Travel of $64K. Labor Relations favorable variance of $41K due to lower Payroll. Internal Audit unfavorable variance of ($740K) primarily due to unplanned General Expense of ($739K) and lower charges to Capital Projects ($90K) offset by lower Outside Services $90K. Accounting and Financial Reporting Services favorable variance of $92K primarily due to lower Payroll of $68K, General Expenses $26K, and Travel of $8K offset by higher Telecommunications of ($9K). Information & Communication Technology plans to be on target. Information Security favorable variance of $138K primarily due to lower Outside Services of $132K and lower Payroll of 5K. Corporate Finance & Budget favorable variance of $47K primarily due to lower Payroll. Business Intelligence favorable variance of $23K primarily due to lower Payroll. Risk Services unfavorable variance of ($202K) due to higher Insurance Expenses of ($253K) offset by lower Payroll of $44K. Office of Strategic Initiative favorable variance of $75K due to lower Payroll of $67K and Outside Services of 7K. Central Procurement Office favorable variance of $200K primarily due to more charges to Capital Projects $261K offset by higher Payroll of ($55K) and Outside Services of ($6K). Police favorable variance of $1.1M primarily due to lower Payroll of $1.5M offset by higher General Expenses of ($491K). Engineering favorable variance of $493K primarily due to lower Payroll of $2.1M offset by less charges to Capital Projects of ($1.7M). PCS favorable variance of $407K primarily due to lower Payroll of $468K, Outside Services of $163K, and Supplies & Stock $57K offset by lower charges to Capital Projects of ($366K). Environment & Sustainability Admin favorable variance of $81K due to lower Payroll. Contingency unfavorable variance of ($1.2M). Adjusted forecast for Vacancy Factor actuals. 32 V. CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/22 2022 Forecast vs. 2021 Actuals Operating Expenses for 2022 are forecasted to be $15.0M higher than 2021, after adjusting for $29.8M state pension credit in 2021 actuals, mainly due to: o Core Central Support Services $10.0M higher than 2021 primarily due to: higher payroll for current employees and new and unfrozen positions as well as full year salaries for mid-year 2021 positions; contractual increases; addition of new initiatives to support growing needs of the organization. o Police $3.0M above 2021 due to: increase in salary and benefits for represented groups based on contracts; new and unfrozen positions; addition of new initiatives to enhance the safety and security of the public. o Capital Development $2.0M higher than 2021 primarily due to higher payroll and addition of new and unfrozen positions as well as contractual increases to support the capital program. D. CAPITAL RESULTS 2022 2022 2022 2022 Budget Variance YTD Year-End Budget POF $ % $ in 000's Actual Fore cas t Engineering Fleet Replacement 267 2,127 2,065 1,465 (62) -3.0% Services Tech - Small Cap 313 1,992 1,500 1,500 (492) -32.8% Infrastructure - Small Cap 43 1,493 1,500 1,500 7 0.5% Phone System Upgrade 54 1,414 1,414 1,000 0 0.0% Radio Microwave Redund. Loop 0 1,040 1,040 1,040 0 0.0% Office Wi-Fi Refresh 39 229 1,039 1,300 810 78.0% Corporate Fleet Replacement 165 799 901 645 102 11.3% Other (note 1) 18 4,484 5,830 4,844 1,346 23.1% Subtotal 899 13,578 15,289 13,294 1,711 11.2% CIP Cashflow Adjustment 0 (3,800) (4,400) (3,900) (600) 13.6% TOTAL 899 9,778 10,889 9,394 1,111 10.2% Note: POF (Plan of Finance) is the total estimated during the budget process. (1) "Other" includes remaining ICT projects and small capital projects/acquisitions. 33
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