Item No. ___11c_supp ____ Date of Meeting: October 28, 2025_ Draft Plan of Finance 2026-2030 and Tax Levy Briefing October 28, 2025 1 Overview • Tax Levy • Draft Plan of Finance • Appendix 2 2026 Budget Process 2026 Budget Development (June-August) Budget Briefings (SeptemberOctober) Plan of Finance and Tax Levy Briefing Introduction & Public Hearing for 2026 Budget (October 28) (November 11) Adoption of 2026 Budget (November 18) Operating and Capital Budget Reviews roll-up into Plan of Finance and Port-wide Budget 3 Tax Levy Background and Update 2026 Preliminary Budget October 28, 2025 Bottom Line Up Front • Stay the Course in 2026: - Maintain steady levy increase to improve position for future needs - No extraordinary needs in 2026 • Prepare for the Future: - Monitor and plan for environmental remediation - Continue to use the levy as a strategic credit strength for access to capital markets 5 Tax Levy Background • Port establishes dollar amount of tax levy annually up to the statutory maximum • Maximum levy increases an estimated 2% per year • Levy can be used for any Port purpose except paying revenue bonds debt service - Commission can limit levy uses • General Obligation (G.O.) bonds can be used instead of levy cash - G.O. bond debt service is the first claim on the levy Port Levy Details 2025 2026 Assumption Levy amount $88.4M $90.2M Maximum levy 117.9M 120.2M Percent of total levies in King County (est.) 1.1% N/A 6 Responsibly Managing the Tax Levy • Levy Uses focus on spending that returns community benefits rather than financial benefits - Environment - Community - Regional transportation - Capital investments Levy Policies Annual levy set at 75% of maximum levy Retain 25% of annual levy as cash G.O. Bond debt service no more than 75% of annual levy 7 Tax Levy & Related Funds • In addition to the tax levy fund, the Commission has established other related funds that are funded by the tax levy • These funds are restricted by Port policy, not law, and currently include: - Environmental Legacy Fund (ELF) - established in 2023 to provide funding for legacy environmental liabilities. Will be used in combination with G.O. Bonds - Transportation & Infrastructure Fund (TIF) - established in 2010 to provide funding for the Port's various regional transportation commitments. TIF is a stand-alone fund that fully funds current obligations • The Port is also able to issue General Obligation (G.O. Bonds). The proceeds of the bond sale can be used in lieu of levy cash - GO Bond debt service is paid from tax levy fund 8 Sources of Tax Levy & Related Funding 2026-2030  Future tax levy collections based on ~2% annual levy growth; annual levy set at 75% of maximum allowable  $113M of existing GO Bond proceeds from issuances in 2022 and 2024  Forecasts assume $261M of additional GO Bonds issue over the next 5 years to support capital investments and rising environmental costs Note: Excludes TIF funds 9 Uses of Tax Levy & Related Funding 2026-2030  Existing GO Bonds DS includes both Seaport capital investments and SR-99 tunnel contribution  Environmental costs are projected to continue well past 2030, but are fully funded with levy resources including G.O. bonds  Assumes continuation of levy funded Community Programs at ~$13M annually Note: Excludes TIF spending 10 The Environment and the Tax Levy Legacy Costs and the Tax Levy • Commission Order established the ELF in 2023 to provide funding for legacy environmental liabilities; $62 million deposited to date • Staff recommends 2026 ELF deposit of $5M from Levy - $4M from reduced Levy funding need due to Maritime Innovation Center Grant - $1M due to 2025 Interest Earnings in the Levy fund (unbudgeted) • Legacy liabilities funding plan - The expected need is fully funded - ELF funding will be combined with G.O. bonds due to recent accounting rule changes that make bond funding advantageous Port Businesses Invest in the Environment • Operating revenues and grants fund many environmental initiatives, such as: - Airport industrial waste - Seaport stormwater management - Shore power • Many capital projects include environmental components, e.g. LEED standards, asbestos removal • Tax levy also supports: - Airport environmental programs ineligible for Airport funding: • Sustainable aviation fuels and Insulation Repair and Replacement Pilot Program 11 Tax Levy Summary and Recommendations • Continue to manage the tax levy in a way that provides financial resilience and supports the Port's strong credit over the long-term • Increase the 2026 tax levy to $90.18 million • Contribute additional $5 million to ELF from the Tax Levy fund in 2026 12 Draft Plan of Finance 2026-2030 2026 Preliminary Budget October 28, 2025 Bottom Line Up Front • Financial Stewardship: Managing within established financial policies provides a foundation for the future; supports strong credit ratings and access to capital • Future Resiliency: Decisions today affect the Port's future • Prioritize interests: . The Port can have anything (1) it wants, but not everything it wants (1) Within its legal limitations 14 The Draft Plan of Finance The Draft Plan of Finance is a funding plan for the Port's five-year Capital Improvement Program (CIP) • A tool for the Commission to inform the budget process and longterm capital investment decisions • Flexible tool that is updated as circumstances change • Plan is developed based on a sustainable financial model • An important tool for investors • Gauge the future financial health of the Port • Provides insight into Port's approach to financial stewardship 15 Funding Resiliency • Establish financial guardrails to manage uncertainty • Provides a cushion for income variability Minimum Fund Balance Airport Minimum Revenue Bond Debt Service Coverage 1.40x (1) Seaport 1.80x 12 months 18 months (1) Calculation for rates and charges may differ from the calculation for bond compliance 16 Seaport Capital Spending (2026-2030) • Maritime $608M - 58% in design or construction - $55M (9% of CIP) reserves • NWSA $340M includes - Port's 50% share of NWSA CIP $228M - Projects related to NWSA $113M • 2025-2029 CIP was $945 million • Stormwater Utility is self-funded and not included in the Draft Plan of Finance Approximately $50M of the Seaport CIP may need to be deferred due to funding constraints 17 Seaport Capital Funding (2026-2030) • 55% of funding from operating sources: - Includes cash funding and revenue bonds paid from operating cash - Decrease in existing revenue bond debt service provides funding capacity • 35% is from tax levy related sources: - Tax levy cash - G.O. bonds paid by the tax levy (some bonds will be used to fund environmental liabilities) • 10% from other sources including grants and Harbor Maintenance Tax (HMT)/WRRDA - Funding sources limited to eligible projects 18 Airport Capital Spending (2026-2030) • Airport is a self-supporting enterprise • 84% in design or construction • $132M (3.5% of CIP) in reserves for unanticipated needs 19 Airport Capital Funding (2026-2030) • 91% funded from operating cash flow and revenue bonds • $310M capital grants (AIP, AIG, ATP) - S Concourse Evolution, Noise insulation projects, airfield pavement, others • Other funding includes: - Customer Facility Charges after the payment of CFC eligible debt service • Most PFC's are used to pay revenue bond debt service; remaining PFCs are available to cash fund capital 20 Port-wide Revenue Bond Debt Service Coverage Forecast • Represents all net income of the Port (including Airport and Seaport) divided by all revenue bond debt service • Tax levy after payment of G.O. bond debt service adds to coverage • Coverage informs debt and capital management and provides a measure of financial sustainability and is critical to investors and rating agencies • Decreasing Port-wide DS coverage is driven by large Airport capital spending but is consistent with the Port's strong credit rating 21 Managing for a Successful Port of the Future Risks to the Plan • • • • • • Business disruptions - pandemic, recession Regulatory and legal requirements Federal funding uncertainty Aging infrastructure and unanticipated investments Limited flexibility to the CIP Looking beyond 2030 - Airport and Seaport capital plans assume lower spending levels - Airport debt service coverage is at or below 1.40x Mitigations • Conservative budgeting provides upside potential • Continued Demand for Airport and Cruise businesses • Greater Cost certainty - Environmental Liabilities are being settled - Airport mega projects are being completed • Resilient financial metrics • Begin efforts to increase capital capacity Risk of over-optimism is greater than the risk of pessimism 22 Increasing Financial Capacity for the Port of the Future • Operating Expenses - continue efforts to reduce growth • Operating Revenues - explore opportunities to generate revenues (without significant capital investments) • Capital Development - review prioritization and delivery methods • Financial Management - maintain strong credit and cost-effective debt issuance - ensure rigorous evaluation of investments 23 2026 Finance Initiatives • Issue revenue bonds to continue funding Airport CIP as needed - Including potential variable rate debt • Monitor need for new G.O. bonds to support Seaport capital needs • Monitor debt for refunding opportunities to generate savings - Potentially refund outstanding commercial paper issued to fund International Place office complex acquisition • Renewal or replacement of expiring letter of credit 24 Appendix 2026 Preliminary Budget October 28, 2025 Contents Pages 27 Additional Tax Levy Information 45 Industrial Development District Levy & Tax Increment Financing Information 49 Airport and Seaport CIP and Funding 52 Revenue Bond Debt Service Coverage and Credit Ratings 26 Port's Taxing Authority Port taxing limitations: Port is limited by the most restrictive - currently the 1% limit • 1% limit - The maximum levy is increased each year by the 1% limit factor - Prior year's maximum is increased by the lessor of 1% or inflation - New construction is added - The maximum levy for 2026 is estimated to be ~$120.2 million • 45 cent limit - The amount of the tax levy in any given year is limited to 45 cents per $1000 of assessed value - For 2026, this limit would translate to ~$406.7 million - Excludes the amount needed to pay G.O. bond debt service 27 Levy History 28 Current Levy Policies and Practices • Manage General Obligation (G.O.) debt service to no more than 75% of the annual levy • Capital investment criteria • Pay for legacy environmental costs • Limited Airport use - costs ineligible for Airport funding per FAA • Retain tax levy flexibility - The difference between the actual levy and the maximum reserves "dry powder" for future resiliency - Supports Port's strong credit ratings 29 Commission Established Levy Use Criteria for Capital Investments Uses: Established in 2015, updated in 2018 Operating Cash Tax Levy Business income sufficient to support investments Economic benefit Strategic Initiatives Short payback/ Self funding No or long payback Location South Harbor North Harbor Asset Renewal 30 2015-2026 Tax Levy & Millage Rate (1) (1) Millage rate represents the amount per every $1,000 of assessed valuation 31 Taxpayer Impact 2025 2026 preliminary Tax Levy ($ million) 88.4 90.2 Estimated millage rate ($/1000) 0.1012 0.1000 Median home value ($) (1)(2) 844,000 850,000 $85 $85 Estimated median home Port tax ($) (1) (2) 2025 per King County; 2026 data is not yet available 2024 median assessed value was $761,000 • The Port's levy increases by 2.0% in 2026; preliminary assessed valuation for 2026 is ~$904 billion (increase of 3.5%) thus the millage rate decreased slightly • The Port's levy was approximately 1.1% of total property taxes levied in King County in 2025 32 Overall Taxpayer Impact - 2025 • Of the $7.7 billion of property taxes paid in King County, about 1.1% goes to the Port • In 2025, the median homeowner paid $7,465 in total property tax with $85 going to the Port 33 Transportation and Infrastructure Fund (TIF) TIF ($ million) Beginning Balance Transportation Investments Ending Balance Transportation Investments ($ million) Seattle Heavy Haul Network Fast Corridor II Safe and Swift Puget Sound Gateway (SR 509) TOTAL 2026 $ $ $ 3.3 $ $ 1.2 4.5 $ 2027 2.0 $ $ 15.0 17.0 $ 2026-2030 Post 2030 $ 47.0 $ 18.7 (28.3) (6.2) 18.7 12.5 2028 2.0 $ 0.8 $ 2.8 $ 2029 2.0 $ $ 2.0 $ 2030 2026-2030 Post 2030 2.0 $ 2.0 $ 11.3 $ 0.8 1.2 15.0 28.3 $ 6.2 6.2 TIF has provided funding for other regional transportation efforts, including: • West Seattle Bridge • FAST Corridor I • South Park Bridge • East Marginal Way Grade Separation 34 Environmental Legacy Fund (ELF) ELF ($ million) Beginning Balance Additional Contribution (1) Environmental Remediation Liabilities Environmental Grant Receipts (2) Ending Balance 2026-2030 Post 2030 $ 50.2 $ 5.0 (61.4) (6.1) 6.2 - 6.1 - • ELF was established in 2023 to provide funding for legacy environmental liabilities • Funded an estimated $21.1 million of Seaport environmental remediation efforts through 2025 • Environmental efforts include, but are not limited to: • Lower Duwamish Superfund • T-108 Chiyoda site • Terminal 25 South • Terminal 115 (Boeing Plant 1) (1) (2) Assumes recommended $5M contribution from the tax levy fund in 2026. Additional contributions will be reviewed on an annual basis. Does not represent all assumed environmental costs during the forecast period. Additional environmental liabilities assumed to be funded with tax levy fund upon depletion of ELF. 35 Tax Levy Sub Fund Balances Established by the Commission to Prepare for Future Obligations Millions Millions * For future commitments, currently forecast at $6.2M 36 Environmental Spending * Based on known liabilities only. Includes spending from tax levy, ELF and G.O. bond proceeds. Additional environmental remediation spending is expected beyond 2030 37 2026 Port Community Program Funding by Activity Economic Development • Diversity in Contracting -$2.2M • Tourism Marketing Support - $2.2M • EDD Partnership Grants - $950K • Spotlight Advertising - $518K • Maritime Blue - $180K Workforce Development * 2026 Proposed Budget: $21.5M • 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 SeaTac Community Relief - $1.4M Detailed list included in the Appendix. 38 2026 Proposed Community Programs 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 Sub Total 18,691 18,803 19,591 20,686 13,577 66% Payroll charged to the Levy 3 Grand Total 433 19,124 589 19,392 781 20,372 848 21,535 848 14,426 100% 67% 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 a. Maritime Workforce Investments (formerly YMCL) 1 b. Airport Employment Center 11) High School Internship Program 12) Diversity in Contracting 2 a. Small Bus. Accelerator under SKCCIF 2 b. DBE/ACDBE/WMBE Training Consultants & Outreach 13) Equity, Diversity & Inclusion 14) Seattle Aquarium Partnership 15) Friends of the waterfront 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 39 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 a. Youth Career Launch Program (formerly OYI) 1 b. Airport Employment Center 7) High School Internship Program 8) Diversity in Contracting 2 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 3 Grand Total 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% 40 Major Capital Projects Funded with Levy/G.O. bonds • T91 Berths 6&8 redevelopment and dock rehabilitation • T91 Uplands development • Fishermen's Terminal - docks, buildings and site improvements Funding flexibility supports financial resilience - Projects may be funded with either tax levy or G.O. bonds depending on funding availability - Future funding availability may result in some projects being funded with the General Fund or Revenue Bonds • East and West Waterway deepening • NWSA North Harbor projects - 50% share 41 2025 Tax Levy Fund Sources and Uses ($ million) SOURCES OF TAX LEVY FUNDS 2025 Beginning Levy Fund Balance Annual Tax Levy Grants & Reimbursements Investment Income Total Sources 2025 $ 39.4 88.4 3.8 0.9 $ 132.4 USES OF TAX LEVY FUNDS G.O. bond debt service (existing) Transfer to ELF Non-Airport Capital Investments Community Programs NWSA Membership Interest Contribution - net Other Total Uses Projected Ending 2025 Levy Fund Balance $ $ 45.5 32.0 15.6 14.2 5.0 1.5 113.8 $ 18.6 Note: Excludes ELF and TIF 42 5-year Tax Levy Fund Sources and Uses ($ million) SOURCES OF TAX LEVY & RELATED FUNDS Beginning Balance - Tax Levy Beginning Balance - ELF Tax Levy Collections Existing GO Bond Proceeds Future GO Bond Proceeds Environmental Grant Receipts Total Sources 2026-2030 $ 19 50 467 113 261 6 $ 916 USES OF TAX LEVY & RELATED FUNDS G.O. Bond Debt Service (existing) G.O. Bond Debt Service (new) Environmental Remediation Liability (Non-Airport) 2026-2030 $ 187 60 276 Seaport Capital Investments Sound Insulation Community Programs Total Uses $ 318 7 69 916 Note: Excludes TIF 43 Airport and Seaport Benefit from the Tax Levy Airport Seaport Certain Noise Mitigation Projects* Legacy Environmental Remediation City of Seatac Safety Payment under ILA (expires 2027) Capital Investments (including G.O. Bonds) Tourism Tourism Certain Community Programs Certain Community Programs Public Expense/Transportation Project Public Expense/Transportation Project Supports Revenue Bond Debt Service Coverage Supports Revenue Bond Debt Service Coverage Airport Spotlight program * Includes Sound Insulation Repair and Replacement Pilot Program & Highline School District NOISE spending not eligible for airport funding 44 IDD Levy - Background • Port can levy property tax within an Industrial Development District (IDD) - In addition to regular property tax - A port can form multiple districts • Coextensive with port district, or • Smaller area within the Port district - The Port already has two Industrial Development Districts • Port can implement the levy twice - Port of Seattle implemented first round in 1963 • Purpose is to provide for harbor improvements or industrial development of marginal lands - Broadly defined - Includes areas of poor planning or declining tax receipts 45 IDD Levy - Implementation • Port may implement a second round based on a new formula - Maximum of ~$2.5 billion over a period of up to 20 years • Average amount = ~$125 million (for 20 years) - Port can establish a smaller IDD or collect a lesser amount, but cannot bank the unused capacity • Process to implement - Publish notice by April 1 to begin collecting the next year - If within 90 days, a petition of 8% of voters (voting in the most recent gubernatorial election) opposes, the Port must hold a special election to approve the levy 46 IDD Levy Information: "Marginal lands" are defined to include property subject to the following (RCW 53.25.030) conditions: 1. An economic dislocation, deterioration, or disuse resulting from faulty planning. 2. The subdividing and sale of lots of irregular form and shape and inadequate size for proper usefulness and development. 3. The laying out of lots in disregard of the contours and other physical characteristics of the ground and surrounding conditions. 4. The existence of inadequate streets, open spaces and utilities. 5. The existence of lots or other areas which are subject to being submerged by water. 6. By a prevalence of depreciated values, impaired investments, and social and economic maladjustment to such an extent that the capacity to pay taxes is reduced and tax receipts are inadequate for the cost of public services rendered. 7. In some parts of marginal lands, a growing or total lack of proper utilization of areas, resulting in a stagnant and unproductive condition of land potentially useful and valuable for contributing to the public health, safety and welfare. 8. In other parts of marginal lands, a loss of population and reduction of proper utilization of the area, resulting in its further deterioration and added costs to the taxpayer for the creation of new public facilities and services elsewhere. 9. Property of an assessed valuation of insufficient amount to permit the establishment of a local improvement district for the construction and installation of streets, walks, sewers, water and other utilities. 10. Lands within an industrial area which are not devoted to industrial use but which are necessary to industrial development within the industrial area. 47 Tax Increment Financing • RCW 39.114 allows certain jurisdictions to form Tax Increment Areas (TIA) • Maximum area is $200 million of assessed value • Port taxes on any increase in assessed value goes to the TIA and not to the Port • Approximately 40 jurisdictions can form TIAs within the Port's boundaries • There are currently two active TIAs within King County; a third is being formed • City of Bellevue is planning to form a TIA at $500 million assessed value Impact on Port Tax Levy Port tax levy Budget Year Diverted to TIAs $ 2024 7,974 2025 12,436 2026 11,596 Total 32,006 48 Seaport CIP and Funding Seaport CIP Maritime NWSA - 50% Share (North & South Harbor) NWSA - Reserve & Port Projects Total Allocated Central Services CIP Total Seaport Funded CIP 2026-2030 ($ million) $ (1) $ $ 2026-2030 ($ million) Seaport Funding Sources 608.1 227.9 113.0 949.1 11.8 960.9 (1) Includes N. Harbor channel deepening and other 100% Port legacy costs in N. Harbor. Note: totals may not add due to rounding (1) Operating Cash Grants Harbor Maintenance Tax (HMT) Tax Levy & Future GO Bond Proceeds Existing G.O. bond proceeds Future revenue bond proceeds Total Seaport Funded CIP $ 402.4 46.7 42.5 (2) 204.6 113.5 101.2 910.9 $ (1) Includes non-airport income available after payment of revenue bond debt service. (2) Annual levy forecasted at 75% of the Port's maximum annual allowable levy. Note: totals may not add due to rounding Based on current forecast, approximately $50M of the Maritime CIP may need to be deferred due to funding constraints 49 Airport CIP and Funding 2026-2030 ($ million) Airport CIP S Concourse Evolution Baggage Optimization 2026-2030 AFLD PVMNTS Main Terminal Improvement C Concourse Expansion SEA Gateway Other Capital Projects SAMP Preliminary Planning/Design(1) Proposed New Projects CIP Reserves TOTAL Allocated Central Services CIP Total Airport Funded CIP $ $ $ 1,065.4 582.6 387.1 250.8 131.4 116.8 906.4 113.6 10.3 131.7 3,696.1 48.8 3,744.9 2026-2030 ($ million) Airport Funding Sources Operating Cash (1) Grants Passenger Facility Charge (PFC) Customer Facility Charge (CFC) Existing revenue bond proceeds Future revenue bond proceeds Total Airport Funded CIP $ $ 488.5 310.4 27.0 18.2 505.5 2,395.2 3,744.9 (1) Includes airport income available after payment of revenue bond debt service. Note: totals may not add due to rounding (1) Sustainable Airport Master Plan Note: totals may not add due to rounding 50 Airport Spending Cycles 51 Revenue Bond Debt Service Coverage • Key metric of income available to pay debt service Coverage Calculation Airport & Non-Airport Revenues - Net income/debt service • Management targets provide financial resilience - Airport 1.40x - Seaport 1.80x • Legal obligation to investors • Use of PFCs and CFCs to pay debt service improves coverage Minus Expenses adjusted for tax levy (1) Equals Available for debt service Divide Debt service net of payment from PFCs and CFCs Equals Debt Service Coverage (1) Tax levy net of G.O. bond debt service is deemed to reduce expenses 52 Existing Revenue Bond Debt Service Structured to Provide Future Flexibility 53 Current Credit Ratings General Obligation Bonds First Lien Revenue Bonds Intermediate Lien Revenue Bonds Subordinate Lien Revenue Bonds Fuel Hydrant Special Facility Bonds Fitch AAAA AAAA- Moody's Aaa Aa2 Aa3 A1 A1 S&P AA AA AAA+ A+ In 2025 Moody's upgraded the Port's Intermediate and Subordinate Lien credits to Aa3 and A1, respectively Noted Credit Strengths: • Diverse asset and revenue base • Airport's market position and enplanement levels • Strong balance-sheet liquidity levels • Conservative debt structure and healthy debt service coverage ratios • Prudent management of the Tax levy including maintaining a cushion • Strong governance and management • Long-range strategic and sustainability plans • Vibrant and resilient area economy 54