Pre-Budget Study Session
Maritime and Economic Development
CIP and Capital Funding
July 24, 2018

1

2019-2023 Capital Improvement Plan (CIP)
Process and Guidance
• Purpose
- Inform on Maritime and EDD capacity
- Opportunity to provide guidance

• Topics
- Funding Capacity - Elizabeth Morrison
- Prioritization Process - Tyler Cooley

• Summarization and feedback
2

Non-Airport Financial Trends

•
•
•

Non-Airport NOI (before depreciation) has generally been trending downwards, leaving less cash flow
available for investment after payment of revenue bond debt service
NWSA is principal source of cash flow
Maritime and EDD combined currently produce negative NOI

3

Cash Flow 2019-2023 Continues to be
Challenged
Operating Income
Cash Flow after Debt Service 2019-2023 ($ mil.)
Income from NWSA
Maritime net income
EDD net income
Debt service and adjustments
Available for capital

269
46
(56)
(167)
92

• NWSA is the primary source of
net income
• Revenue bond debt service is
paid prior to capital investments

Preliminary based on the 2018 budget forecast

4

Forecast Tax Levy* Uses 2019-2023

The Port anticipates investing nearly $100 million in a number of
community investments and more than $300 million in capital
investments for facilities that support the maritime industries
* Based on $72 million annual tax levy
5

Preliminary* Estimate of $200 million for Maritime
and EDD Capital Investment 2019-2023

(1)

Includes potential Airport obligations not eligible for Airport Funds

* Preliminary based on 2018 budget forecast

6

Capital Prioritization Process
EDD and Maritime ($ in millions)
Projects
Underway

Small
Projects/Fleet
Contingency

Funding Gap,
$61

On the bubble

• $261M of projects considered
• Does not include other
prospective projects

• Prioritization Process
- Projects Scored

Higher Rated
Projects

• Century Agenda
• Renewal/Replacement
• Potential for New Revenue

- Following Initial Assessment
$261 Million Total
Note: Assumes current revenue and levy projections

• Assumes $200M funding capacity
- Leaves $61M of projects unfunded
7

2019 to 2023 Capital: Initial Assessment
EDD and Maritime ($ in millions)
Projects
Underway, $8.2
Lower Rated
Projects, $39.2

Small
Projects/Fleet,
$12.8
Contingency,
$11.7

On the bubble Shortfall,
$21.8

Higher Rated Projects ($112.5M):
T91 Uplands Development
T91 Berths 6 and 8
T117 Restoration
FT Docks 3,4,5 Upgrade
New T91 Cruise Gangway

"On the bubble" ($76.6M Total)
On the bubble Funded,
$54.8

Higher Rated
Projects,
$112.5

($54.8M Funded + $21.8 Shortfall)
FT Redevelopment Phase I
BHICC Interior Modernization
SaBM Docks D&E Replacement
P66 Shore Power

Lower Rated Projects ($39.2M):
$261 Million Total
Note: Assumes current revenue and levy projections

Salmon Bay Uplands Development
T10 Dolphins
Smaller projects not listed
8

2019 to 2023 CIP: Project Matrix
Initial Assessment Criteria
Cost
Project Name
($m)
T91 Uplands Development
$45.6
T-91 Berth 6 & 8 Redev
$35.0
FT Redevelopment Phase 1
$33.5
Salmon Bay Marina Uplands
$20.5
T117 Restoration
$17.9
P66 Shore Power
$15.0
BHICC Interior Modernization
$9.9
SaBM Docks DE Replacement
$5.9
FT Docks 3,4 5 Fixed Pier Imp
$4.9
New Cruise Gangway at T91
$4.5
Projects under $4M
$35.6
Contingency/Fleet/Small Cap
$32.7
Total $261

Century
Agenda
X
X
X

Renew/
Replace

X
X

X

X
X

Potential New
Revenue
X

X

X
X
X

X
X
X

Additional Considerations
Community & Waterfront Innovation
Environment
Strategy
District
X
X
X
X
X
X
X
X
X
X

X

X

X
X
X

9

Tax Levy History Since 2008
• 2018 tax levy is $72 million -
flat or declining since 2008
• Due to inflation since 2008,
the real value of the tax levy
is now worth $59 million
• Levy decreases and inflation
reduced purchasing power
since 2008 by $100 million
• Local inflation in 2017 was 3%

10

Discussion

11

2019 to 2023 Capital: Waterfront Strategy
EDD and Maritime ($ in millions)
Projects
Underway, $8.2

Small
Projects/Fleet,
$12.8
Contingency,
$9.1

Unfunded
Projects, $61

Waterfront
Strategy
Projects,
$169.9

Waterfront Strategy Projects
($169.9M):
T91 Uplands Development
T91 Berths 6 and 8
FT Redevelopment Phase I
T117 Restoration
P66 Shore Power
FT Docks 3,4,5 Upgrade
SaBM Docks D&E Replacement
P66 Shore Power
New T91 Cruise Gangway

Unfunded Projects ($61M):
$261 Million Total
Note: Assumes current revenue and levy projections

BHICC Interior Modernization
Salmon Bay Uplands Development
Smaller projects not listed
12

2019 to 2023 Capital: Renew & Replace
EDD and Maritime ($ in millions)
Projects
Underway, $8.2

Small
Projects/Fleet,
$12.8
Contingency,
$11.7

Unfunded
Projects, $61

Available for
Other Projects,
$67.8

Renewal &
Replacement
Projects,
$99.5

$261 Million Total
Note: Assumes current revenue and levy projections

Renew & Replacement Projects
($99.5M):
T91 Berths 6 and 8
T117 Restoration
BHICC Interior Modernization
FT Docks 3,4,5 Upgrade
SaBM Docks D&E Replacement

Potentially Unfunded:
T91 Uplands Development
FT Redevelopment Phase I
Salmon Bay Uplands Development
P66 Shore Power
New T91 Cruise Gangway
Smaller projects not listed
13

2019 to 2023 Capital: Potential New Revenue*
EDD and Maritime ($ in millions)
Projects
Underway, $8.2

Small
Projects/Fleet,
$12.8
Contingency,
$11.7

Unfunded
Projects, $61

Available for
Other Projects,
$27.8

Potential New Revenue*($139.5M):
T91 Uplands Development
FT Redevelopment Phase I
Salmon Bay Uplands Development
T117 Restoration
BHICC Interior Modernization
New T91 Cruise Gangway

Potentially Unfunded:
Potential New
Revenue
Projects*,
$139.5

$261 Million Total
Note: Assumes current revenue and levy projections

T91 Berths 6 and 8
FT Docks 3,4,5 Upgrade
SaBM Docks D&E Replacement
P66 Shore Power
*Financial returns dependent on strategy and are not expected to have a
material impact on funding capacity in the next 10 years.
**Smaller projects not listed
14

2019 to 2023 Capital: Scoring Criteria
$15M

Century
Agenda
$44.6M

$87.2M

Potential
Revenue
$24.5M

$17.9M
$9.9M

Renewal
& Replace
$21.9M

15