Item No: 9a_supp . Meeting Date: May 22, 2018 Port of Seattle 2019 Budget Process and Development Briefing 1 Century Agenda 25 year Goals Long Range Plan 5 year Strategic Plans Identify/Refine Objectives, Priority Actions and Milestones for LRP 2019 Business Planning (Including 2019 Priorities) 2019 Operating Budget New Capital Projects and 5-Year Capital Plan 2019 Budget: Key Focus Areas • Manage operating expenses to increase Net Operating Income in a sustainable way • Seek new revenue and efficiency opportunities where possible • Obtain Commission input early in process regarding priorities and desired outcomes • Prioritize capital projects to align with projected funding resources • Refine funding plans for major programs, e.g. SAMP, NWSA (including T5), Waterfront Vision • Ensure alignment of budgets with Long Range Plan objectives Aligning the budget with the Port's strategic objectives and priorities 3 2019 Budget Process Overview Strategic Initial Budget Planning: • • • Assess business environment and industry conditions Update five-year division business operating and capital forecasts Update Long Range Plan Budget Preparation: • • • Develop key budget assumptions, drivers and targets Issue budget calendar and departmental guidelines Prepare 2019 operating and capital budgets Budget Reviews and Approvals: • • • Conduct department and division budget reviews Publish the preliminary budget document to the public Commission review and approve budgets/capital plans Final Steps: • • File the Statutory Budget with King county Publish the final budget document to the public Many steps in budget development process 4 2019 Budget Calendar Strategic Initial Budget Planning: • • • • • • 05/22 - 2019 Commission budget process briefing; seek guidance and input on budget development and Commission priorities 06/26 - Aviation division Commission briefing on 2019 key initiatives/budget drivers 07/10 - Maritime division Commission briefing on key initiatives/budget drivers 07/24 - Economic Development division Commission briefing on key initiatives and budget drivers 08/14 - Long Range Plan Commission Briefing 08/14 - Commission budget priorities discussion Early engagement with Commission for budget input and development 5 2019 Budget Calendar - Con't. Budget Preparation: • 08/01 - 2019 Budget Guidelines available to budget support staff (formal budget entries begin in early August). • 08/20 to 09/13 - Executive team reviews of department/division budgets • 08/28 - 2019 key budget assumptions memo to the Commission • 09/11 - Second Quarter Financial Performance Commission briefing Executives examine, scrutinize and evaluate proposed budgets 6 2019 Budget Calendar - Con't. Commission Budget Reviews and Approvals: • • • • • • • 09/25 - Central Services budget Commission briefing 10/04 - Last day for changes to be incorporated into the 2019 Preliminary Budget document 10/09 - Operating division budgets Commission briefing 10/18 - Last day for changes to be incorporated into the first reading of the 2019 Budget on 11/13 10/23 - Tax Levy & Draft Plan of Finance Commission briefing 10/23 - 2019 Preliminary Budget document available to Commission 10/25 - 2019 Preliminary Budget document available to the public Commissioners review and provide input on preliminary budget 7 2019 Budget Calendar - Con't. Commission Budget Reviews and Approvals (Con't): • 10/30 - NWSA Budget study session by Managing Members • 11/13 - NWSA Budget adoption by Managing Members • 11/13 - First reading of budget resolution and public hearing • 11/15 - Last day for changes to be incorporated into the second reading of the 2019 Budget • 11/27 - Second reading and final passage of 2019 Budget Commissioners review and provide input on preliminary budget 8 2019 Budget Calendar - Con't. Final Steps: • 12/03 - File the 2019 statutory budget with King county • 12/14 - Publish the 2019 Final Budget to the public Port required to file a statutory budget with the County under state law 9