Item No.         10e_supp
Date of Meeting     November 29, 2022
Introduction and Adoption of Resolution
No. 3809 Amending the Authorization for
Passenger Facility Charges (PFCs) –
effective January 1, 2023

                Importance of PFCs
•  PFCs are collected from passengers by airlines and submitted to airports
for use as approved by application to the Federal Aviation Administration.
•  Costs paid by PFCs are excluded from airline rate bases, thus lowering
airline costs (CPE).
•  SEA has been collecting PFCs since 1992. Resolution No. 3464 (2001)
included an expiration date of 12/31/2022.
•  Proposed action will permit the Port to continue collecting PFCs until the
Port Commission decides to terminate collection.
•  SEA anticipates collecting approximately $95 million in PFCs in 2023.
Without these PFCs in 2023:
– CPE would increase by $3.69
– Debt service coverage (calculated per terms of airline lease agreement) would
decrease by .31

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         Annual PFC Collections $94+ Million
Projected PFC Collections 2022-2031
$120.0
$105.8        $107.9
$99.7        $101.7        $103.7
$100.0       $93.9         $94.1                       $95.8         $97.7
$93.5

$80.0
$ in Millions   $60.0
$40.0

$20.0

$-
2022         2023         2024         2025         2026         2027         2028         2029         2030         2031

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      Primary PFC Usage is Debt Service Offset
Projected PFC Usage 2022-2031
$120
$109
$104
$101         $103         $103
$100                                   $99
$100                                 $96                                                                                        $96
$93

$80
$ in Millions   $60
$40

$20

$-
2022         2023         2024         2025         2026         2027         2028         2029         2030         2031
Third Runway    Baggage    STS/STEP    IAF    NSAT    PAYGO    Total

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           PFC History of Approval & Use
Approved for       PFC
Year   Application
Use      Expenditures
1992  Application 1 (Closed)                                        $27.9       $27.9
1994  Application 2 (Closed)                                         48.8        48.8
1996  Application 3 – Passenger Conveyance System (STS)                292.9       257.4
1998  Application 4                                             1,642.1      1,007.8
•   Third Runway
•   Concourse A Expansion (STEP)
2011  Application 7 – In-line Baggage                                155.7        56.6
2017  Application 8                                             1,674.5      252.6
•   International Arrivals Facility (IAF)
•   North Satellite
TOTAL                                                        $3,841.9      $1,651.1

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                  Background
Previous Resolutions Adopted by Commission:
• September 25, 2001 – Resolution No. 3464 – expiring December 31, 2022
• October 28, 1997 – Resolution No. 3253
• July 25, 1995 – Resolution No. 3199
• May 25, 1993 – Resolution No. 3143
• December 10, 1991 – Resolution No. 3099



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