Agenda Item No: 11a_supp
Date of Meeting: September 23, 2025

Proposed 2026 Central
Services Budget and
Preliminary Port-wide Roll-up
Commission Briefing
9/23/2025

Overview
• 2026 Budget Timeline
• Strategy to Budget Process
• Key Budget Drivers & Considerations
• Portwide Budget Rollup
• Central Services Operating budget
• Equity in Budgeting
• Central Services CIP
• Remaining Budget Schedule
2

2026 Budget Timeline

2026 Business
Plan and CIP
Development

2026 Budget
Development

Budget Briefings

Introduction of
2026 Budget &
Public Hearing

(May/June)

(June-Aug)

(Sept/Oct)

(Mid-November)

Adoption of
2026 Budget
(Late
November)

3

Strategy to Budget Process
Century Agenda

Implementation

Strategic
Planning

Vision/Goals

5- 10 Years

SWOT
Gap
Objectives & KPIs

3-5
Years

2026 Business Plan
2026 Budget

Annual

2026 Performance Plans

4

Long-term Success Requires Strategic Budgeting
• Feedback Loop: Century Agenda drives budget development; financial
results determine the Port's ability to achieve its goals
• Approximately $1 million of added expense = $10 million less capital
capacity
• Slow operating expense growth in order to build funding capacity
• Improve capital capacity to manage substantial known needs
(environmental remediation and aging facilities) and shield from slower
revenue growth

5

2026 Budget Guiding Principles
Take an extremely conservative approach to budgeting due to economic
and political uncertainties and need to build capital
Safeguard the efficient operation of mission critical business functions to
maintain regional economic activity
Assess geopolitical, political and regulatory risks on an ongoing basis
Identify, protect and enhance operating and capital investments focused
on asset preservation and long-term growth and revenue production
Focus on retaining key talent and developing staff through training and
upskilling
Prioritize implementation of current programs and initiatives

6

Key 2026 Budget Drivers & Considerations
Managing Expense Growth to Prepare for the Future

•
•
•
•
•
•

Maintaining sustainable expense growth
Economic and geopolitical uncertainties
General and construction cost inflation
Commission Priorities alignment
Capital investment program and growing operational needs
Investment in Environmental Sustainability, Workforce Development &
Community Programs
• Equity Budgeting and Spending (ESAP)

7

7

2026 Port-wide
Budget Rollup

8

8

2019-26 Port-wide O&M Budget Summary

9

2026 Proposed Port-wide Budget Summary
2026
Inc/(Dec) from 2025
Proposed
Approved Budget
Budget
$ Change % Change
9.2%
615,497
51,661
(1.6%)
(5,787)
366,493
173,495
(9,982)
(5.4%)
3.2%
1,155,485
35,892
0.0%
24,791
24,791
5.4%
1,180,276
60,683

2023

2024

2025

Actuals
479,697
326,592
162,991
969,281
0
969,281

Actuals
520,942
348,212
174,395
1,043,549
0
1,043,549

Budget
563,836
372,280
183,476
1,119,593
0
1,119,593

Operating Expenses
Lease Interest Expense
3
SBITA Interest Expense
Operating Exp plus Lease Interest Exp
Depreciation
NOI w/o Lease Interest Income/Expense

550,899
98
578
551,575
256,740
161,642

652,642
74
932
653,648
277,917
112,990

678,288
17
412
678,717
267,028
174,277

729,091
7,915
606
737,612
308,110
118,283

50,803
7,898
194
58,895
41,082
(55,993)

47.0%
8.7%
15.4%
(32.1%)

NOI with Lease Interest Income/Expense

160,965

111,984

173,848

134,553

(39,295)

(22.6%)

DESCRIPTION (in $000's)
Aeronautical Revenues
Airport Non-Aero Revenues
Seaport Revenues
Operating Revenues
1
Lease Interest Income
Operating Rev plus Lease Interest Income
2

7.5%

Notes:
1. Lease Interest Income actuals (under Non-Operating account) were $15.7M and $21.7M in 2023 and 2024, respectively.
2. Payroll Expenses include DRS pension credits in the 2023 and 2024 actuals.
3. SBITA (Subscription-Based IT Arrangement) is defined as a contract that conveys control of the right to use another party's IT software as specified in
the contract for a period of time in an exchange or exchange-like transaction.

10

Port Community Programs
Maritime High School

South King County Partners meeting

*

* Detailed list included in the Appendix.
11

2026 Port Community Program Funding by Activity
Economic Development

•
•
•
•
•

*

2026
Proposed
Budget:
$21.5M

Diversity in Contracting -$2.2M
Tourism Marketing Support - $2.2M
EDD Partnership Grants - $950K
Spotlight Advertising - $518K
Maritime Blue - $180K

Workforce Development
• Workforce Development Department - $5.0M
• High School Interns - $523K

Equity, Diversity & Inclusion
•
•
•
•
•

South King and Port Communities Fund - $2.2M
OEDI Department - $2.5M
Friends of the Waterfront- $2.0M
Staff Costs supporting DVCEP & SKCCIF - $848K
Duwamish Community Equity program (DVCEP) - $617K

•

$1.4M

SeaTac Community Relief
* Detailed list included in the Appendix.

12

Central Services
Proposed 2026 Budget

13

13

2019-26 Central Services O&M Budget Comparison

14

2026 Baseline Budget Development
Start with 2025
Approved Budget

Remove 2025 OneTime Items

Adjust and
annualize for 2025
new FTEs

Add payroll
increase
assumptions

Adjust for nondiscretionary
contractual
increases

Adjust for mid-year
approvals

15

Key Baseline Budget Drivers
• Investment in Workforce

- 4% COLA and pay for performance increase for non-represented
- Represented pay increases based on negotiated contracts

• Other payroll increases

- Annualized payroll for 2025 new FTEs
- Annualized payroll for 6.2 mid-year approved new FTE

• Non-discretionary contractual increases

- Property Insurance
- ICT Software License & Maintenance Agreements
- Other Contractual Increases
16

2026 Operating Expense Budget Changes

17

Central Services Proposed Budget Highlights
• Total operating expense is $204.7M, $8.8M or 4.5% higher
compared to the 2025 Budget
- Total Payroll budget increased by $6.9M or 4.5% due to:
• 4.0% COLA and Average Pay for Performance Increase
• Annualized new FTEs approved in the 2025 budget
• Added 7.0 new FTEs

- Non-payroll increased by $1.8M or 4.3% mainly due to:
• Higher on-site consultant costs, Insurance Expense, and other contractual
increases.

18

2026 New Budget Requests Summary
20%,
Proposed
Payroll,
750K

Total Requests:
36 at $3,817K O&M
Total Proposed:
35 at $3,681K O&M

Proposed
O&M
3,681K

New FTEs: 7.0
80%,
Proposed
Non Payroll,
2,930K

* Detailed list included in the Appendix.

19

New Budget Requests by Category

Implement and
support Port
initiatives and goals
848 K

Public Safety and
Online Security
1,302 K

Proposed
O&M
3,681K

Organizational Needs
and Division Priorities
1,126 K

Regional economic
priorities and
engagement with
surrounding
communities
405 K

* Detailed list included in the Appendix.

20

2026 New Budget Request by Dept

Proposed O&M
$3.681K
7.0 FTEs

* Detailed list included in the Appendix.
21

Selected Major Budget Additions
ICT: Security & Operational
• $292K for additional FTEs to enhance cybersecurity and ensure coordinated,
efficient use of technology
• $940K to refresh computers, implement conference room audio upgrades, deploy
ADA testing and call center software for the service desk to enhance overall
accessibility and efficiency
Info Security: Security
• $214K for additional FTEs specializing in Operational Technology and Industrial
Control Systems (OT/ICS) cybersecurity and identity access management.
• $375K for CheckPoint Harmony email security and consultant-led risk and
penetration testing
22

Selected Major Budget Additions
Police: Public Safety
• $200K for Crowd Management Unit staffing overtime in support of the World Cup
• $263K for comprehensive public safety improvements spanning technology,
training, and equipment
CPO: Operational/Workforce
• $330K for new integrated electronic procurement solution to support the Port's
future projects and procurement needs
Portwide Contingency:
• 500K to support World Cup and the nation's Semi-Quincentennial Anniversary
events in 2026

23

Selected Major Budget Additions
OEDI: Program Enhancement
• $238K for Anti-Human Trafficking initiatives, Maritime High
School and Core Plus programs
Executive: Organizational Efficiency
• $150K for an Objectives and Key Results (OKR) system to
improve goal tracking and drive measurable results
AFR: Operational/Workforce
• $94K to fund an additional Capital Services Accounting
Systems Analyst FTE to support capital operations and
financial systems
24

2026 Central Services Proposed FTEs Summary
976.8

983.0

985.0

• 2025 Approved Budget was 976.8

• 6.2 Mid-Year added
• 2025 Adjusted Baseline is 983.0
• 7.0 New FTEs proposed
• 5.0 Seasonal to be eliminated
• 2026 Proposed Budget is 985.0

25

Uncertainties/Budget Risks
• Unprecedented political and economic uncertainty
• Effects of trade, immigration and other policy actions
• Cuts in federal climate change programs and funding
• Increased inflation due to tariffs on operating, capital and
environmental costs
• Ability to execute on a growing number of programs and
initiatives, including capital plan
• Rapid technological advances including Artificial Intelligence
and growing sophistication of cyber threats
• Vacancy rate assumed at 4% in budget
26

ESAP/Budgeting
With Equity
Summary

27

27

Central Services Equity Spending Trend

* Equity spending criteria and definition are included in the Appendix
28

2026 Central Services Equity Spending Highlights
• Workforce Development Programs ($3,173K)
- Airport Employment Center ($1,653K)
- Youth Career Launch Program ($670K)
- Construction Pre-Apprenticeship Program ($750K)
- Maritime High School ($100K)

• South King and Port Communities Fund ($1,954K)
- Total SKPCF is $2,195K if including $250K in Diversity in Contracting in EDD

• Duwamish Valley Community Equity Program ($617K)

29

2026 Central Services Equity Spending Highlights Cont.
• Veteran's Program ($361K)
• High School Internship Program ($290K)
• Language Access Fund ($134K)
• Equity Assessment Part 2 ($100K)
• Taxi Driver Employment Navigator ($65K)
• Immigration Rapid Response Contract ($30K)
• Employee Resource Groups ($20K)

30

Central Services
CIP

31

Central Services Capital Projects Summary
Five Year Capital Plan ($000's) *
Commission Authorized Projects
Projects Pending Authorization
Small Capital
CIP Cashflow Management Reserve
Total

2026
7,738
7,340
5,514
(6,400)
14,192

2027
1,329
5,450
5,260
12,039

2028
1,329
3,500
4,319
2,133
11,281

2029
1,329
3,000
5,035
2,133
11,497

2030
1,329
3,000
5,160
2,133
11,622

2026-2030
Total
13,054
22,290
25,288
60,632

* Excludes ICT projects budgeted within operating divisions as well as ICT portions of PMG led projects.

32

Commission Authorized Projects
Five Year Capital Plan ($000's)
Commission Authorized Projects
2025 Police Axon Contract (capital portion)
PeopleSoft Financial System Upgrade
Phys Access Contrl System Refresh
Radio Microwave Redundancy Loop
Public Safety Dispatch & Police
Enterprise Network Refresh
Contract Management System Replacement
ID Badge System Upgrade
Specification Document Management Software
Total

*
N
U
U
U
N
U
U
U
N

2026
1,329
1,474
979
953
827
712
650
478
336
7,738

2027

2028

2029

2030

2026-2030
Total

1,329
1,329

1,329
1,329

1,329
1,329

1,329
1,329

6,645
1,474
979
953
827
712
650
478
336
13,054

* N = New System or Function U = System Upgrades or Replacements

33

Projects Pending Authorization
Five Year Capital Plan ($000's)
Projects Pending Authorization
IT Renewal/Replacement
Private Cellular Network (LTE)
Fleet Management Software
Property Management System Upgrade
Web Accessibility Compliance
Maximo Software System Upgrade
SEA SQL ESX Refresh
Tierpoint ESX Refresh
SEA Prod ESX Refresh
Fire Alarm Monitoring System
Nexus Improvements
2026 Police ROV purchase
Total

*

2026

2027

2028

2029

2030

U
U
N
U
U
U
U
U
U
U
U
N

2,000
850
140
500
600
600
600
600
500
500
450
7,340

2,500
2,000
700
250
5,450

2,500
1,000
3,500

3,000
3,000

3,000
3,000

2026-2030
Total
11,000
5,000
850
840
750
600
600
600
600
500
500
450
22,290

* N = New System or Function U = System Upgrades or Replacements

34

Small Capital Projects
Five Year Capital Plan ($000's)
Small Capital
Technology Infrastructure
Technology Business Applications
Corporate Fleet Replacement *
Engineering/PCS Fleet Replacement
Enterprise GIS Small Capital
Corporate Police Small Capital
Engineering Small Capital
Corporate Small Capital
Total
CIP Cashflow Management Reserve
CIP Reserve - Central Services

2026

2027

2028

2029

2030

2026-2030
Total

1,500
1,388
1,144
560
250
432
140
100
5,514

1,500
1,500
1,000
600
250
100
210
100
5,260

1,500
1,283
761
240
250
100
85
100
4,319

1,500
1,500
1,190
165
250
100
230
100
5,035

1,500
1,500
1,290
290
250
100
130
100
5,160

7,500
7,171
5,385
1,855
1,250
832
795
500
25,288

(6,400)

-

2,133

2,133

2,133

-

* Mainly Police fleet purchases

35

Remaining 2026 Budget Schedule
•
•
•
•
•
•
•
•
•
•

Operating division proposed budget briefings (10/14)
2026 Tax Levy & Draft Plan of Finance Commission Briefing (10/28)
2026 proposed Budget Document Available to the Commission (10/21)
2026 proposed Budget Document Available to the Public (10/23)
NWSA Budget Adoption by Managing Members (11/05)
Introduction and Public Hearing of the 2026 Budget (11/11)
Commission Approval of the 2026 ILA between POS and the NWSA (11/11)
Adoption of the 2026 Budget (11/18)
Filing of 2026 Statutory Budget with King County Council & Assessor (11/28)
Release of 2026 Budget to the Public (12/5)

36

Appendix

37

37

2026 Proposed Port-wide Budget Rollup
• Total Operating Revenue is $1,155.5M, $35.9M or 3.2% above 2025
budget
• Have not received the NWSA Distributable Income - currently assume same as 2025

• Total Operating Expense is $729.1M, $50.8M or 7.5% higher than 2025
budget
- Total Payroll budget increased by $31.0M or 7.3% due to:
• 4.0% COLA and Average Pay for Performance increase
• Annualized new FTEs approved in the 2025 budget
• Added new FTEs

- Non-payroll increased by $19.8M or 7.7% mainly due to:

• Higher on-site consultant costs and other contractual increases.

38

Central Services Overview
• Central Services provides a large number of essential services to
the Port's three operating divisions and to the Northwest Seaport
Alliance (NWSA) per service agreements.
• The departments of Central Services are vital to the success of the
operating divisions and the NWSA and benefit the public in
general.
• Central Services include 20 departments, including Accounting,
Human Resources, External Relations, Legal, Police, Engineering,
Port Construction Services, Information & Communication
Technology, etc.
• Central Services expenses are allocated to the operating divisions
and the NWSA or, in some cases, funded by the Tax Levy.
39

Environmental Scan
• Unprecedented political and economic uncertainty
• Effects of trade, immigration and other policy actions
• Risk of federal funding reductions and reduced operating revenues
• Cuts in federal climate change programs and funding
• Impact of increased inflation due to tariffs on operating, capital and
environmental costs
• Rapid technological advances including Artificial Intelligence and growing
sophistication of cyber threats
• Strong relationships with industry partners
• Continued local commitment to equity and environmental justice
• Organizational stress and fatigue

40

2026 Budget Strategies
• Develop a very conservative budget and create contingency and
scenario planning to address revenue risks
• Focus on increasing Net Operating Income by limiting expense growth
• Limit new FTEs and outside services
• Assess affordability of capital plans considering increased inflation and
revenue risks
• Strengthen the focus on sustainability, adaptability and resiliency in
spending and business plans
• Monitor early warning indicators that may trigger budget recalibration
and take actions as necessary
41

2026 New Budget Items Summary
35 Items proposed $3,681K (O&M):
• 7.0 FTEs: $550K Pay and $49K FTE related Non-payroll
costs (ICT, Info Sec, & AFR)
• $940K Computer Refresh, ADA and Call Center
Software, Conference room audio improvements (ICT)
• $500K World Cup (Portwide Contingency) and $200K
Crowd Management unit staffing (Police)
• $375K Email filtering and Consultant for Risk
Assessment and Penetration testing (Info Security)
• $330K Integrated electronic procurement systems
(CPO)
• $263K Equipment and supplies for Police
• $150K Strategic Planning Software (Exec)
• $100 Maritime High School and $50K for Core Plus
curriculum run by Muckleshoot and Suquamish Tribes
(WFD)
• $88K Anti-Human Trafficking (EDI)
• $60K Employee Resource Group funding and
Leadership conference (HR)
• $25K Manufacturing Maritime Industrial Association
(MMIA) membership split with Economic Development
42

2026 New Budget Items
Category

Purpose/Outcome
Seattle will be one of the host cities for the 2026 Fédération Internationale de Football Association (FIFA) World Cup. This
funding would allow the Port to showcase to the world how Seattle champions sustainability, equity, and economic
development. This supports the Port's goal to provide positive passenger experiences at airports and event terminals,
thereby propelling economic growth.
Provide ongoing support for Maritime High School that launched in Fall 2021. The school is operated by the Highline School
district and includes curricula focused on Port-related industries, including maritime and green jobs. This funding is to make
maritime careers more visible to BIPOC communities which is in line with the Port's values of equity and accessibility.

ADA Testing Software to scan the Port's website and content to ensure compliance with Web Content Accessibility
Implement and
Guidelines (WCAG) 2.1 Level AA by April 2027. Implementation of this software supports the port goal to become a model of
support Port
initiatives and goals equity, diversity, and inclusion by ensuring that the Port's data content can be accessed by all.
Anti-Human Trafficking (AHT) funding will support the ongoing effort to raise awareness of the signs and behaviors of human
trafficking and how to report it. This funding will include annual breakfast and AHT Awareness month efforts; app and QR
code; training program for port staff; conference for AHT workgroup; and additional funds for FIFA World Cup.

2026
Requests
500,000

100,000

100,000

88,000

(1) Employee Resource Group funding provides employees with learning and development opportunities which enforces the
Port's goal of fostering an inclusive and engaging work environment. (2) The Leadership Conference will bring leaders
together for a strategic conversation across the organization. This is essential in fostering an environment of transparency,
accountability, respect, leadership, and fairness to give Port staff the tools to be exceptional public servants.

60,000

Subtotal

848,000

43

2026 New Budget Items
Category

Advance work on
regional economic
priorities and
enhance
engagement with
surrounding
communities

Purpose/Outcome
Central Procurement Office (CPO) Technology Solution will support the Port's future projects and procurement needs.
This integrated electronic procurement system will streamline the bidding process by providing templates and
checklists to the bidders, built in reminders, technical assistance, and reliable technology. This system will make it easier
for firms (especially WMBE, small businesses, and disadvantaged firms) to do business with the Port. This approved item
aligns with the Port's goal of enhancing community engagement with partners and surrounding communities.

2026
Requests

330,000

Core Plus Maritime curriculum funding will support the pilot program in near-port and tribal schools managed by
Muckleshoot and Suquamish Tribes. The curriculum will combine hands-on, high-end learning in Science, Technology,
Engineering and Math (STEM) with global merchant marine safety Standards of Training Certification and Watchkeeping
(STCW). This funding advances the Port's goal of continued support for surrounding communities.

50,000

The Manufacturing Maritime Industrial Association (MMIA) is a nonprofit organization dedicated to strengthening
Washington's maritime, manufacturing, logistics, and industrial sectors. Becoming a member and having a seat on the
board of directors will assist the Port in fostering its goal of continued support for surrounding communities by
protecting industrial lands, prioritizing investment, advocating for supportive policies, and implementing strategies that
drive growth, resilience, and long-term sustainability.

25,000

Subtotal

405,000

44

2026 New Budget Items
Category

Purpose/Outcome
Computer Refresh program will replace aging equipment across the organization. Industry recommendations are to
replace employees' computers every 3 years to ensure efficiency and security. Replacing aging equipment will increase
reliability and efficiency as well as allow for smooth roll-out of security and critical new software upgrades.
Implementing a Strategic Planning Reporting Software will enhance organizational alignment, improve goal tracking,
and drive measurable outcomes. This will provide a structured framework for setting and monitoring objectives.
Through the implementation of this new technology solution, leaders will have access to real-time insights, improving
decision-making and overall performance. Additionally, this solution ensures transparency, fosters collaboration, and
integrates seamlessly with existing workflows, enabling teams to stay focused and adapt to evolving priorities.

2026
Requests
782,000

150,000

(1) Conference Room Audio Improvements will provide enhanced microphone pickup and additional speaker volume
Organizational
thereby resolving audio challenges during hybrid meetings; (2) Telecom Infrastructure Engineer will ensure critical
Needs and Division
communications links function properly. This new position will support expanding capital construction projects, smart
Priorities
technology deployments, and growing operational maintenance demands at the Airport and Seaport; (3) Call Center
Software for Service Desk will replace the call queue and the IVR (interactive voice response) that were wiped out by the
cyber-attack. Adopting Webex Contact Center aligns with our strategic goals of improving customer satisfaction,
increasing operational efficiency, and supporting future growth.

100,683

As the Port continues to grow, with new assets being acquired and older assets replaced, the demand on Capital
Services to maintain these systems and their underlying data has expanded significantly in recent years. The addition of
a Capital Services Business System Analyst will assist in enhancing oversight of financial reporting, streamlining
automation efforts, and strengthening data governance frameworks.

93,522

Subtotal

1,126,205

45

2026 New Budget Items
Category

Public Safety &
Online Security

Purpose/Outcome
(1) The addition of two new positions in Information Security department: Cybersecurity Specialist and Identity and
Access Management (IAM) Specialist will assist in strengthening the Port's overall security framework to protect critical
infrastructure and assets. (2) Consultant Risk Assessment and Penetration Testing will assist in measuring current risk
exposure and providing prioritized recommendations to reduce organizational cyber risk. (3) The implementation of
Check Point's Harmony Email Filtering will protect the Port's systems against zero-day threats, phishing, business email
compromise (BEC), account takeover, and internal data leakage.

2026
Requests

588,924

ICT will add three positions: Network Engineer will ensure that the Port's network operates efficiently and securely;
Windows Server Engineer will support the VMWare, Windows based Services, and Azure administration as well as the
related security of each system; Enterprise Cloud Architect will oversee and align the Port's enterprise system
architecture across departments with the Port's security framework. These positions will strengthen the Port's systems
to protect against our cyber threats and ensure coordinated, efficient technology use.

249,196

(1) The Police department's crowd management unit will increase staff time to ensure the safety of participants and
spectators during the 2026 World Cup. (2) Police's crowd management staff will attend a dialogue course to assist
officers in communicating and managing larger crowd anticipated during the World Cup. (3) Police will acquire the Axon
DeDrone City Wide App, a notification system that will alert the department of the presence of drones. This is especially
important with the upcoming World Cut due to a projected increase in drone activity before and during the event.

235,943

46

2026 New Budget Items
Category

Public Safety &
Online Security

Purpose/Outcome
Police will purchase necessary equipments: (1) Homeland Security Unity uniforms and advanced equipment and
weapons storage (2) new plate carriers for the Bomb Disposal Unit. These equipments will ensure that Police officers are
well-equipped to protect themselves and the public during high-threat situations. Police will acquire (3) Explosive Odor
Recognition K9s that will provide immediate deployable threat detection, enhancing overall safety and security of the
Port and its facilities. Moreover, Police will upgrade (4) bikes for the Crowd Management Unit (CMU), the team
responsible for responding to civil unrest. Police will purchase (5) supplies and computers for the dive team which will
improve the team's ability to conduct safe, effective underwater operations in the Port's complex and high-traffic
maritime environment
Police will increase (1) Public Defender contract per agreement with the City of SeaTac court in compliance with the
Supreme Court's provisional order concerning caseload standards for public defense services. Police will increase the
budget for (2) the Basic Law Enforcement Academy (BLEA) which is a required training for all entry level Police Officers to
gain their state certification. Police will purchase (3) a 3D Crime Scene Mapping Tool that will enable the unit to create
highly immersive, dimensionally accurate 3D models of complex crime scenes, ensuring more effective investigations
and enhanced evidence presentation. This tool will reduce processing times and minimizes the risk of contamination or
loss of critical evidence, reinforcing the Port's commitment to public safety and justice.
Subtotal

Grand Total

2026
Requests

132,500

95,000

1,301,563
3,680,768

47

2026 New FTEs Summary

7.0 FTEs: $550K Pay and $49K FTE related Non-payroll costs
• ICT: 4.0 FTEs- Infrastructure Engineer, Server Engineer, Network Engineer, Enterprise Cloud Architect
• Info Sec: 2.0 FTEs- Identity and Access Management (IAM) Specialist, OT/ICS Cybersecurity Specialist
• AFR: 1.0- Capital Services Business System Analyst
48

2026 Proposed Budget Summary
2022

2023

2024

2025

(in $000's)

Actuals

Actuals

Actuals

Budget

2026
Proposed
Budget

Inc/(Dec) from 2025
Approved Budget
$ Change % Change

Total Payroll Costs (with Capital)
Total Non-Payroll Costs (with Capital)
Total Costs (with Capital)

118,460
47,250
165,710

133,577
57,601
191,178

158,995
91,422
250,417

179,721
65,819
245,540

188,376
72,876
261,252

8,655
7,057
15,712

4.8%
10.7%
6.4%

Sal/Wage-Cap/Govt/Envrs Proj
Dept Expense Charged - CapProj
Cap/Govt/Envrs Projects OH
OnsiteConsult-Cap/Gov/Env Proj
Total Charges to Capital

(16,628)
25
(7,172)
(7,018)
(30,793)

(19,886)
1
(8,731)
(10,409)
(39,025)

(20,441)
147
(10,438)
(13,563)
(44,296)

(27,432)
0
(6,801)
(15,396)
(49,630)

(29,160)
0
(9,470)
(17,925)
(56,555)

(1,728)
0
(2,668)
(2,529)
(6,925)

6.3%
0.0%
39.2%
16.4%
14.0%

Total Payroll Expenses
Non-Payroll O&M Expense
O&M Expenses
Lease Interest Expense
SBITA Interest Expense

101,832
33,085
134,917
0
0

113,690
38,462
152,153
91
246

138,553
67,567
206,121
63
603

152,288
43,622
195,910
17
185

159,216
45,481
204,697
18
425

6,928
1,860
8,787
1
240

4.5%
4.3%
4.5%
5.8%
130.2%

O&M EXP plus LEASE INTEREST EXP

134,917

152,490

206,786

196,111

205,140

9,028

4.6%

* Payroll Expenses include DRS pension credits in the 2022, 2023 and 2024 actuals.
49

Central Services Proposed Budget by Account
Actuals

Budget

2026
Proposed
Budget

TOTAL OPERATING REVENUE
OPERATING EXPENSE
Salaries & Benefits
Wages & Benefits
Payroll to Cap/Govt/Envrs Proj
TOTAL SALARIES & BENEFITS

2,538

(216)

403

183

259

76

78,779
23,053
16,628
118,460

92,338
21,352
19,886
133,577

108,585
29,968
20,441
158,995

112,845
39,443
27,432
179,721

117,574
41,641
29,160
188,376

4,729
2,198
1,728
8,655

4.2% 4% pay increase and more charges to capital
5.6% Contractual increase in POL+4% COLA
6.3%
4.8%

Equipment Expense
Utilities
Supplies & Stock
Outside Services
Travel & Other Employee Exps
Promotional Expenses
Telecommunications
Property Rentals
Worker's Compensation Expense
General Expenses
Overhead Allocations
TOTAL NON-PAYROLL EXPENSES

2,982
33
992
31,079
1,950
540
654
478
642
7,899
0
47,250

2,400
58
1,551
39,407
2,589
1,806
780
598
664
7,816
(69)
57,601

3,025
98
1,107
43,408
2,766
6,409
780
828
763
32,214
24
91,422

2,568
48
906
48,241
3,982
850
813
262
731
7,417
(0)
65,819

3,054
88
1,132
52,918
3,865
1,385
753
127
947
8,607
0
72,876

486
40
225
4,677
(117)
535
(61)
(135)
217
1,189
0
7,057

18.9% Due to decreases mainly in ER, ENG, HR, ICT & POL
84.6% Due to $27.5K Utilities increase in PCS
24.9%
9.7% Mainly due to increase in ENG, PCS, ICT & Info Sec
(2.9%) Reduction in some depts
62.9% Mainly due to Friends of the Waterfront
(7.4%)
(51.4%) STOC purchasing
29.6% Based on estimate from AFR
16.0% Mainly due to $473K increase in insurance
(244.8%)
10.7%

TOTAL COSTS BEFORE CAPITAL CHARGES

165,710

191,178

250,417

245,540

261,252

15,712

6.4%

59900-Sal/Wage-Cap/Govt/Envrs Proj
68700-Dept Expense Charged - CapProj
68750-Cap/Govt/Envrs Projects OH
68760-OnsiteConsult-Cap/Gov/Env Proj
Charges to Cap/Govt/Envrs Projects

(16,628)
25
(7,172)
(7,018)
(30,793)

(19,886)
1
(8,731)
(10,409)
(39,025)

(20,441)
147
(10,438)
(13,563)
(44,296)

(27,432)
0
(6,801)
(15,396)
(49,630)

(29,160)
0
(9,470)
(17,925)
(56,555)

(1,728)
0
(2,668)
(2,529)
(6,925)

6.3%
0.0%
39.2%
16.4%
14.0%

Operating Expenses
Lease Interest Expense
SBITA Interest Expense
OPERATING EXP plus LEASE INTEREST EXP

134,917
0
0
134,917

152,153
91
246
152,490

206,121
63
603
206,786

195,910
17
185
196,111

204,697
18
425
205,140

8,787
1
240
9,028

4.5%
5.8%
130.2%
4.6%

DESCRIPTION (in $000's)

2022

2023

2024

2025

Actuals

Actuals

Inc/(Dec) from 2025
Approved Budget
$ Change % Change

Notes

41.3%

50

Central Services Proposed Budget by Dept
2022

2023

2024

2025

Departments (in $000's)
O0001-Port of Seattle General Org
O1100-Executive
O1200-Commission Office
O1310-Legal
O1330-Risk Services
O1400-External Relations
O1460-Equity, Diversity and Inclusion
O1500-Business Intelligence
O1600-Engineering
O1700-Port Construction Services
O1800-Human Resources
O1810-Labor Relations
O1900-Information & Comm. Technology
O1980-Information Security
O2110-Finance & Budget
O2200-Accounting/Financial Reporting
O2280-Internal Audit
O2400-Offic of Strategic Initiatives
O2700-Environment & Sustainability
O2790-Industrial Development Corp
O2900-Corporate Contingencies
O2999-Corporate Capital to Expense
O4300-Police Department
O9200-Central Procurement Office

Actuals

Actuals

Actuals

Budget

0
2,029
2,206
8,213
5,078
8,651
4,283
1,395
5,053
3,651
11,087
1,085
25,693
1,571
2,279
7,914
2,406
893
763
(268)
56
35,064
5,816

0
3,147
2,448
10,315
5,756
10,154
5,475
1,609
6,263
5,644
13,543
1,292
25,914
2,040
2,602
9,032
1,944
1,291
1,137
1
(251)
36,422
6,376

6
6,025
3,042
10,312
7,395
14,379
6,449
1,888
8,581
7,063
16,099
1,541
30,410
2,613
3,075
10,003
1,935
1,125
1,479
21,534
499
43,591
7,079

0
2,779
3,589
6,255
8,016
14,211
7,435
2,543
15,131
7,777
17,817
1,933
31,482
2,968
3,179
12,059
2,267
1,557
2,544
(2,655)
45,860
9,165

Operating Expenses
Lease Interest Expense
SBITA Interest Expense
OPERATING EXP plus LEASE INTEREST EXP

134,917
0
0
134,917

152,153
91
246
152,490

206,121
63
603
206,786

195,910
17
185
196,111

2026
Inc/(Dec) from 2025
Proposed
Approved Budget
Budget
$ Change % Change
Notes
0
0
0.0%
3,407
628
22.6%
3,671
82
2.3%
6,863
608
9.7% Mid-year new FTE
8,642
626
7.8% $473K increase in insurance
15,858
1,646
11.6% Added $1.25M for Friends of Waterfront
7,513
78
1.0% Removed $250K one-time item
2,633
90
3.5%
13,764
(1,367)
(9.0%) More charges to capital
8,123
347
4.5% Increase in Small Works and Worker's Comp
18,972
1,155
6.5% Mainly due to increase in payroll
1,923
(9)
(0.5%)
34,080
2,598
8.3% Contractual increases
4,612
1,645
55.4% 2 mid-year new FTEs and unbudget new contracts
3,371
192
6.0% Increase in SymPro contract and Alteryx licenses
12,807
749
6.2% 2 mid-year new FTEs
2,448
181
8.0% Mainly due to increase in payroll
1,731
174
11.2% Mainly due to increase in payroll
2,306
(238)
(9.4%)
0.0%
(6,184)
(3,529)
132.9% Removed $5.1M Comp Project budget
0.0%
48,401
2,541
5.5% Contractual increase in POL+4% COLA & court fee
9,756
590
6.4%
204,697
18
425
205,140

8,787
1
240
9,028

4.5%
5.8%
130.2%
4.6%

51

2026 Proposed Community Programs
Program (in $000)
1) Energy & Sustainability Fund
2) Airport Community Ecology (ACE) Fund
3) South King and Port Communities Fund
4) Duwamish Valley Community Equity Program
5) EDD Partnership Grants
6) Tourism Marketing Support Program
7) Airport Spotlight Ad Program*
8) City of SeaTac Community Relief*
9) Maritime Blue (formerly Maritime Innovation Center)
10) Workforce Development
1
a. Maritime Workforce Investments (formerly YMCL)
b. Airport Employment Center
11) High School Internship Program
2
12) Diversity in Contracting
2
a. Small Bus. Accelerator under SKCCIF
b. DBE/ACDBE/WMBE Training Consultants & Outreach
13) Equity, Diversity & Inclusion
14) Seattle Aquarium Partnership
15) Friends of the waterfront
Sub Total
Payroll charged to the Levy
Grand Total

3

2026
Funded
by the levy
2,195
617
950
920
518
1,400
180
3,827
670
507
290
300
250
50
230
400
2,000

% of the 2026
Budget
Funded
by the levy
0.0%
0.0%
100.0%
100.0%
100.0%
42.3%
100.0%
100.0%
100.0%
77.0%
100.0%
30.7%
55.4%
12.2%
100.0%
100.0%
9.1%
100.0%
100%

2023
Budget
120
40
2,214
462
850
1,830
466
1,400
150
5,186
1,000
1,517
457
2,299
250
50
1,767
1,000

2024
Budget
40
2,214
471
950
1,875
466
1,400
175
5,077
900
1,517
486
2,304
250
50
2,065
1,000

2025
Budget
40
2,205
619
950
2,154
518
1,400
175
4,976
750
1,517
520
2,356
260
50
2,459
750

2026
Proposed
Budget
2,195
617
950
2,177
518
1,400
180
4,972
670
1,653
523
2,463
250
50
2,540
400
2,000

18,691

18,803

19,591

20,686

13,577

66%

433
19,124

589
19,392

781
20,372

848
21,535

848
14,426

100%
67%

Notes:
1 Maritime Workforce Investments (formerly YMCL) budget rolls up to Workforce Development total (item 10).
2 $250K Small Business Accelerator under DIC is included in DIC total (Item 12) and SKCCIF (item 3).
3 2026 Payroll only for CPO & Ext. Rel. Other payroll from HS Interns, WFD, EDI are included in the individual items above.
* Non-Operating Accounts

52

Community Programs Funded by Tax Levy
Program (in $000)
1) South King and Port Communities Fund
2) Duwamish Valley Community Equity Program
3) EDD Partnership Grants
4) City of SeaTac Community Relief*
5) Maritime Blue (formerly Maritime Innovation Center)
6) Workforce Development
1
a. Youth Career Launch Program (formerly OYI)
b. Airport Employment Center
7) High School Internship Program
2
8) Diversity in Contracting
a. Small Bus. Accelerator under SKCCIF 2
b. DBE/ACDBE/WMBE Training Consultants & Outreach
9) Equity, Diversity & Inclusion
10) Seattle Aquarium Partnership
11) Friends of the waterfront
12) Other
Total
Payroll charged to the Levy
Grand Total

3

2023 Budget
Funded
by the levy
2,214
462
850
1,400
150
3,785
1,000
303
252
300
250
50
138
1,000

2024 Budget
Funded
by the levy
2,214
471
950
1,400
175
3,863
900
303
259
300
250
50
203
1,000
806
11,772

2025
Funded
by the levy
2,205
619
950
1,400
175
3,762
750
303
280
310
260
50
226
750
1,608
12,404

2026
Funded
by the levy
2,195
617
950
1,400
180
3,827
670
507
290
300
250
50
230
400
2,000
1,438
13,577

1,108
11,760
433
12,193

580
12,352

781
13,185

848
14,426

Notes:
1 Maritime Workforce Investments (formerly YMCL) budget rolls up to Workforce Development total (item 6).
2 $250K Small Business Accelerator under DIC is included in DIC total (Item 5) and SKCCIF (item 3).
3 2026 Payroll only for CPO & Ext. Rel. Other payroll from HS Interns, WFD, EDI are included in the individual items above.
* Non-Operating Accounts

Inc/(Dec) from 2025
Approved Budget
$ Change
% Change
(10)
-0.5%
(2)
-0.4%
N/A
N/A
5
2.8%
66
1.7%
(80)
-11.9%
204
40.2%
10
3.5%
(10)
-3.3%
(10)
-4.0%
N/A
4
1.9%
400
100.0%
1,250
62.5%
(170)
-11.8%
1,173
8.6%
67
1,240

7.9%
8.6%

53

2025 One-Time Items
Org

Dept

Description

1330 Risk Mgmt
Laptop/Cell Phone for new FTE
Risk Mgmt
Vertikal Insurance Certificate Tracking Platform
1400 External Relations Laptop/Cell Phone for new FTE
External Relations Waterfront Strategy and Outreach
1460 OEDI
Laptop/Cell Phone for new FTE
OEDI
Maritime High School
1500 BI
Laptop/Cell Phone for new FTE
BI
Business Intelligence Strategy Plan Update
1600 Engineering
Laptop/Cell Phone/Furniture for new 7 FTEs
Engineering
Survey Datum & Coordinate System Update
1700 PCS
Metal Fabrication Machine
PCS
PC Air Physical Changes for F&I
PCS
2025 Training Facilitated Learning Session
PCS
8 iPads for CM's and 8 Laptops for Crew
PCS
Professional Development Program (Negotiation Skills)
PCS
Professional Development Program (Strategic Project Mgmt)
PCS
Service Directives-IDIQ for Leadership Coaching Athena Group
1800 HR
Laptop/Cell Phone/Furniture for new FTEs
HR
Employee Resource Group Miscellaneous Fund
HR
HR Request/Inquiry Ticketing System Implementation
HR
LMS Consulting Services; Onboarding Consulting Services
HR
Peoplesoft-Taleo Consulting Services
1810 LR
Laptop/Cell Phone for new FTE
LR
Phone Service for new FTE
1900 ICT
Laptop/Cell Phone/Furniture for new FTEs
ICT
Microsoft Windows Server 2012 Support Extended
2100 F&B
Economic Impact Study
4300 Police
Laptop/Cell Phone/Furniture for new FTEs
Police
EDI Guest Speakers
9200 CPO
Procurement Workforce Analysis
CPO
Bluebeam RevuCAD - 1 New License = $300
TOTAL

Amount
3,500
11,200
3,500
100,000
3,500
250,000
3,500
75,000
37,900
310,000
30,000
295,000
10,000
29,016
2,990
2,990
15,000
11,000
20,000
10,000
30,000
10,000
3,500
600
20,965
120,000
38,000
32,500
40,000
75,000
300
1,594,961

54

2025 Mid-Year Approvals Summary
Item

Org

Description

1
2
3
4
5
6
7
8
9
10

1980 Info Sec
1311 Legal
1420 Ext Rel
1980 Info Sec
1980 Info Sec
2240 AFR
1980 Info Sec
1980 Info Sec
9205 CPO
2260 AFR

SIEM Expansion
Records Program Specialist
Duwamish River Cmnty Hub Coordinator
1Password
Checkpoint
Supplier Management Ops Supervisor
Azure Cloud Security Architect Lead
Resiliency Analyst
Procurement Officer IV_LTD3
General Ledger Business System Analyst

77,095
20,113

TOTAL

Amount in 2025
Payroll Non-Payroll

Amount in 2026
Payroll Non-Payroll
133,363
131,135

78,254
17,647
30,743
30,743
85,149

194,690
6,290
11,426
269,714
3,800
16,550
7,300
3,850
2,500

157,578
206,904
183,400
183,400
171,012

194,690
1,540
600
11,426
269,714
600
12,600
4,300
300
-

339,744

516,120

1,166,792

495,770

55

2026 Contractual Increases Summary
Item
1
2
3
4

Org
4300
1400
2100
1800

Dept Account
Description
Police
64370 City of SeaTac Court Fees ILA increase
External Re 64370 Friends of Waterfrount
F&B
64740 Emphasys/SymPro Portfolio Management
Elimination of the B&O Tax Credit
HR

TOTAL

Amount in Amount in
2026
2025

Change

421,000

720,000

299,000

750,000

2,000,000

1,250,000

25,000

55,350

30,350

-

17,849

17,849
-

2,793,199

1,597,199

1,196,000

56

Equity Spending Criteria
If an investment meets one of the definitions, then it must also meet at least one of the key
criteria:
A. Advances diversity for the Port.
B. Removes systemic barriers for BIPOC or structurally excluded communities to participate
in the Port.
C. Programs and funding that were developed through direct engagement with
communities, and/or communities been consulted in design of the program.
D. Has a demonstrable impact in quality of life for BIPOC or structurally excluded
communities.
E. Was intentionally designed to have a positive impact in BIPOC or structurally excluded
communities .
F. Achieves our environmental justice goals and removes barriers for BIPOC or structurally
excluded communities to live and enjoy a healthy environment.

57

Equity Spending Definition
The Port of Seattle defines equity spending as Port investments that:
1) Invest directly in targeted communities, either through grants, contracts, programs,
sponsorships, or dedicated facilities; OR
2) Invests in businesses and individuals outside the Port to help us realize our internal
and external equity priorities; OR
3) Invests in Port staff whose essential work functions were designed to primarily focused
on advancing equity work.

58

GASBs 87 Lease and 96 SBITA Accounting Changes
• Require to report part of the lease payments from tenants (except
for leases related to aeronautical revenues) as non-operating
interest income, instead of operating revenues.
• No impact to the Port's overall Changes in Net Position.
• Treat leases more like a long-term financing arrangement, similar to
a loan for our tenants to use the Port facilities, with part of the lease
payments representing interest income on that financing
arrangement.
• Conversely, when the Port makes lease or subscription payments to
vendors (for the use of land, facilities, equipment, or subscriptionbased IT services) a portion of those payments is now classified
as non-operating interest expense.
59