Item No.: 11b_SUPP
Meeting Date: July 26, 2022
Port of Seattle
2023 Budget Development Briefing
July 26, 2022


1

                  Agenda
• Environmental Scan
• Business Forecast
• 2023 Budget Principles/Strategies
• 2023 Budget Considerations
• 2023 Budget Calendar

2

               Environmental Scan
• Continued recovery in the Airport and Cruise businesses
• Economic & pandemic uncertainties (recession, supply chain
disruptions)
• Inflation at a 40-year high
• Great Resignation and competitive job market
• Increased regulation/external policy changes
• Increased focus on community related issues
• More staff needs for operations and capital projects delivery

3

           Passenger Recovery Forecast
Annual
Change  Vs. 2019
2020   -61.2%   -61.2%
2021    79.1%   -30.5%
2022    29.4%   -10.1%
2023     8.2%    -2.8%
2024     2.6%    -0.2%
2025     2.5%     2.3%
2026     2.5%     4.8%
2027     2.0%     6.9%
•  Achieve 2019 passenger
level by 2024
4

         Cruise Operations 1999-2022   2022 Estimate
1.3M Passengers
296 Ship Calls












5

           2023 Budget Guiding Principles
•  Maintain continued vigilance on the health and safety of
employees, customers and the public as pandemic uncertainties
continue
•  Ensure the efficient operation of Port business gateways with the
potential for nearly full recovery in Port business volumes
•  Support regional equitable economic recovery through advancing
the Port’s capital improvement plan and continued investment in
community programs
•  Continue to invest in employee recruitment, retention and
development
6

               2023 Budget Strategies
•  Maintain expense growth in line with projected revenue growth
•  Carefully evaluate the need for additional FTEs as current recruiting
resources are stretched thin with a large backlog of new and replacement
FTEs
•  Incorporate expectations for continued high inflation into operating and
capital plans
•  Utilize realistic assumptions regarding the ability to execute our five-year CIP
when estimating project completion dates and the timing of projected cash
flows
•  Continue to refine opportunities to incorporate an equity lens in developing
and reviewing budgets and operational plans
•  Strengthen the focus on sustainability and resiliency in spending and
business plans

7

          Key 2023 Budget Considerations
• Economic and pandemic uncertainties
• Balancing expenses with projected revenues, approach to
expense targets
• Pay increase assumptions
• General and construction cost inflation
• Ability to fill vacant/new FTEs
• Incorporating resiliency initiatives
• Advancing Equity in Budgeting

8

                 2023 Budget Calendar
(Commission Items in Blue)
5/20 – 2023 Budget Planning Discussion with ELT
6/14 – Commission Retreat: Budget and Organizational
7/12 – 2023 Budget Guidelines available
7/26 – 2023 Budget Process and Schedule Commission Briefing
8/01 – Commission Budget Retreat
8/05 – Central Services Department new budget requests due to F&B; Commission Priorities due to ED
8/15 – 08/23: Executive review of Central Services Department Budgets/New Requests
9/12 – Executive review of combined Central Services Budget
9/14 – Executive review of Maritime and EDD Operating & Capital Budgets
9/15 – 2023 North Harbor Budget to the NWSA
9/15 – Executive review of Aviation Operating & Capital Budgets

9

                 2023 Budget Calendar
(Commission Items in Blue)
09/27 – Central Services Budget and Port wide Budget Overview Commission briefing
10/11 – Operating Divisions Commission Budget Study Session
10/14 – POS/NWSA ILA Service Directives due to the NWSA
10/18 – 2023 Preliminary Budget Document available to Commission
10/20 – 2023 Preliminary Budget Document available to the public
10/25 – Tax Levy & Draft Plan of Finance Commission briefing
10/27 – NWSA Budget study session with Managing Members
11/07 – NWSA Budget adoption by Managing Members
11/08 – Introduction of preliminary 2023 Budget and public hearing
11/15 – Adoption of 2023 Budget
12/01 – File the 2023 Statutory Budget with King county
12/15 – Publish the 2023 Final Budget to the public

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                  Port of Seattle
2023 Budget Development Briefing
Q&A’s

11