Item No. 10a supp
Date of Meeting: November 11, 2025

Introduction & Public
Hearing of the
Preliminary 2026
Budget
Date: November 11, 2025

Outline
• Changes after the Prelim Budget Doc
• 2026 Operating Budget Highlights
• 2026 Commission Priorities
• 2026-2030 Capital Plan
• 2026 Sources and Uses of Funds
• 2026 Budgeting with Equity
• 2026 Proposed Tax Levy
• Remaining 2026 Budget Schedule

2

Changes after the Preliminary Budget Published
• Aviation Division - OPERATING EXPENSE increased $1.1M:
•

$1.1M to support increased coverage needs in the preliminary STAC &
TSA exit lane contract

• Aviation Division - OPERATING REVENUE increased $2.3M
- Aeronautical revenues
•
•
•

$1.1M increase to recover costs for increased coverage in the
preliminary STAC & TSA exit lane staffing contract
$853K increase to incorporate the recently approved Building 156A
lease agreement with Amazon.com Services, LLC
Net of $0.4M from other cost recovery adjustments

STAC - Seattle-Tacoma Airline Consortium

TSA - Transportation Security Administration

LLC - Limited Liability Company3

Changes after the Preliminary
Budget was Published
• Maritime Division
- No change

• Economic Development Division
- No change

• Central Services
- No change

• NWSA/Joint Venture
- No change

4

2026 Operating Budget Highlights
($ in '000s)

Inc/(Dec)
Change from 2025
$
%
39,302
3.5%
24,791
0.0%
64,093
5.7%

2023

2024

2025

Operating Revenues
Lease Interest Income
Total Operating Rev plus Lease Interest Income

Actual
969,281
969,281

Actual
1,043,549
1,043,549

Budget
1,119,593
1,119,593

2026
Proposed
Budget
1,158,895
24,791
1,183,686

O&M Expenses w/o Pension Credit
DRS Pension Credit
O&M Expenses with Pension Credit

579,607
(28,709)
550,899

675,431
(22,790)
652,642

678,288
678,288

731,141
731,141

52,853
52,853

7.8%
0.0%
7.8%

Lease Interest Expense
SBITA Interest Expense
Total Operating Exp plus Lease Interest Exp

98
578
551,575

74
932
653,648

17
412
678,717

7,915
606
739,662

7,898
194
60,945

46899.4%
47.0%
9.0%

Net Operating Income (with Pension Credit)

418,382

390,907

441,305

427,754

(13,551)

-3.1%

Notes

• Operating revenues plus Lease Interest Income up 5.7% to $1,184 million from 2025 Budget
• Operating expenses plus Lease & SBITA Interest Expenses up 9.0% to $740 million from 2025 Budget
• Net Operating Income down -3.1% to $428 million from 2025 Budget

5

2026 Key Budget Drivers
• Payroll
- 4.0% average pay increase for non-represented employees
- Wage increases for represented groups based on contracts
- Annualize new mid-year FTEs approved in 2025, which carry over into 2026
- Added a net increase of 12.0 FTEs for 2026, focused on strategic objectives and
supporting critical operations
- 4.0% vacancy factor
• Non-Payroll
- Growing operational needs and capital investment program
- Increase in contractual costs
- Maintenance costs for new facilities
- Added resources for customer service and safety & security for the travelling public
- Additional resources for Environmental Review, Community Programs, and World Cup
events
6

2026 Major New Non-Payroll Items
Description

Total ($000s)

TSA Exit Lane Staffing
Expense Components Related to Capital Projects
N06478 FCSP/Flight Corridor Safety Program - Port Property
Onsite Consultants to Tenant Expense

$4,600
$2,605
$2,002
$2,000

On Call Planning - Airfield Study

$1,725

Zone 2 - Custodial Service Contract New RFP
Lounge Operating Expense Increase
Computer Refresh Program
SEA Moves: Contractor Support
Part 150 Noise and Land Use Compatibility Study
2026 New Air Service Incentive Program
Checked Baggage Technical Contract for Onsite Support
SAMP NTP Environmental Review (SEPA)
World Cup and the nation's Semi-Quincentennial Anniversary Events
SEA Building Information Modeling

$1,650
$1,200
$782
$769
$750
$700
$670
$550
$500
$500
7

Commission 2026 Budget Priorities (Aviation)
Investments in SEA Moves - Per Commission Order 2024-13 To implement an
external-facing SEA employee transportation resource and benefits program by
forming a Transportation Management Association (TMA). $500K will be funded by
Tax Levy. (SEA)
$25K for Connector/Offsite Check-in Feasibility Study - Feasibility study to
explore a landside bus service/offsite security check-in opportunity between
Seattle-Tacoma International Airport and Paine Field.

8

Commission 2026 Budget Priorities (Maritime)
$400K for Propeller Siting - One propeller to be installed;
assessing location of second ferry propeller.
$30K Sea Lion Mitigation - Seeking new & innovative
ways to address this difficult challenge.
$12K ORCA Kiosks - To install an interpretive kiosk to
educate public at Shilshole Bay Marina regarding whale
sitings.

9

Commission 2026 Budget Priorities (EDD)
$150K Business & Economic Development Plan - To develop a comprehensive
business strategy and tactical action plan for business and economic development.
$100K Shipbuilding Readiness - To conduct a comprehensive landscape analysis of
workforce readiness, industry scalability, regulatory impacts, energy needs, and
competitiveness, with the goal of becoming a "shipbuilding ready" center by 2026.
$100K SAF (Sustainable Aviation Fuels) - Invest in Cascadia Sustainable Aviation
Institute as an active member of the board. Co-sponsor with Environmental &
Sustainability Dept.
State of WA Rural Tourism Support Program (RTS) - Develop a new program in
2026 that launches with funding in 2027 that continues to focus on sustainable rural
tourism development New grant program to start in 2027.
Rewriting the Map for Equitable Tourism (RMET) Program Engaging historically
redlined communities in tourism opportunities ahead of FIFA. (included in Existing
Programming)
Economic Development Strategic Planning Align economic development objectives
to real estate strategy update.
10

Commission 2026 Budget Priorities (Central Services)
$670K for expanded Maritime Workforce Investments (formerly
Youth Maritime Career Launch Program) - To provide career
opportunities for youths in the Maritime industry.
$618K Duwamish Valley Community Equity Program - To
support green jobs, and programs that promote community-port
collaboration.
$200K Strengthen ESOL Pathway - Increase access to classes for
English language learners to support them in workforce
development programs that require English language fluency.
$100K for Language Access Program - To increase language
access for speakers with limited English proficiency.
$100K for I-BEST Pilot Development/Partnership - Pilot program
to invest in Basic Education and Skills Training.
11

Commission 2026 Budget Priorities (Central Services)
$100K Maritime High School - To support curricula focused on
Port-related industries, including maritime and green jobs.
$88K for Anti-Human Trafficking - To complete the Port's 3year anti-human trafficking campaign efforts. The airport's share
of the Port-wide costs is $38K. Maritime and Corporate's share is
$25K each.
$50K CorePlus - To support the pilot program in near-port and
tribal schools managed by Muckleshoot and Suquamish Tribes.
$50K IMO Mentorship Program - To support exploration of
programs that move toward decarbonization.
$32K Port U: Port 101 Adult Education Series - To increase
awareness of Port programs, initiatives, and facilities.
12

2026 Community Programs
$21.5 million is being invested in 13 programs supporting equitable economic
opportunities throughout the region and healthy communities and environment.

• Diversity in Contracting
and DBE/WMBE Training
• Equity, Diversity and
Inclusion
• City of SeaTac Community
Relief

•
•
•
•
•

Airport Employment Center
• South King and Port
Internship program
Communities Fund
Maritime High School
• Duwamish Valley
Maritime Workforce Investments
Community Equity Program
Construction Trades Pre• Friends of the Waterfront
Apprenticeship Training and
support

• Economic Development
Partnership Program
• Tourism Marketing Support
Program
• Community Advertising
Program

13

Port Community Programs
Maritime High School

South King County Partners meeting

*
* Detailed list included in the Appendix.

14

2026 Port Community Program Funding by Activity
Economic Development
•
•
•
•
•

Diversity in Contracting -$2.5M
Tourism Marketing Support - $2.1M
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.

15

2026-2030 CIP Summary
2026
Budget

($ in 000's)
Committed Capital Projects
Aviation Division
Maritime Division
Central Services
Other
Total Committed

Notes
1)
$

% of 2026 Total
Committed

2026-2030
CIP

$

931,831 $
99,067
10,536
1,096
1,042,530 $

3,143,039
401,097
29,690
26,708
3,600,534

Business Plan Prospective Projects

$

66,783 $

799,361

CIP Cashflow Adjustment Reserve

$

(176,381) $

0

Total CIP

$

932,933 $

4,399,895

89.4%
9.5%
1.0%
0.1%
100.0%

CAPSUM.xslx

Notes:
1) Includes the Stormwater Utility and NWSA Joint Venture

16

2026 Sources and
Uses of Fund

2026 Sources of Funds
Operating Revenues without
NWSA

45.3%

Proceeds from Bond Issues

35.8%

Passenger Facility Charges

4.2%

Tax Levy

3.7%

NWSA Distributable Cash

3.1%

Interest Receipts

3.1%

Grants and Capital
Contributions

2.3%

Other Receipts

1.2%

Rental Car Customer Facility
Charges

1.0%

Fuel Hydrant Receipts

0.3%

• 45.3% of funding sources
comes from operating
revenues w/o NWSA
• 35.8% of funding sources
comes from bond
proceeds

Total Uses: $2,431 million

• The tax levy makes up
3.7% of total funding
sources in 2026

18

2026 Uses of Funds
Capital Expenditures

40.9%

Total Operating Expenses

11.2%

Bond Redemptions

10.6%

Payment to NWSA for Capital
Expenditures

Public Expense

Plan to spend about
40.9% of total funds
on capital projects
in 2026

•

32.1% of total
expenditures on
operating expenses

32.1%

Interest Payments

Other Expenses

•

3.4%

1.6%

Total Uses: $2,281 million

0.3%

19

2026 Budgeting With
Equity Summary

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.

Port Wide Equity Spending as a Percentage of Total OpEx

22

2026 Tax Levy

Bottom Line Up Front
• Recommend 2026 tax levy increase based on 75% of maximum
- ~ 2.0% increase

• Develop and analyze levy scenarios for Commission consideration
at the 2026 budget retreat including:
- Assessment and prioritization of additional needs
- Other funding opportunities
- Appropriate communication with stakeholders - taxpayers, rating agencies
and investors
- Incorporating broader context of Port resilience
24

Levy History

Maximum levy is based on an estimated 2% annual increase: 1% levy limit plus new construction
25

Recent History
Budget Year

Levy Change

Approach

2019

3%

Preserve buying power

2020

3%

Preserve buying power

2021

3%

Preserve buying power

2022

3%; decreasing to 2% in
subsequent years

Preserve buying power for 2022, preserve levy cushion
thereafter

2023

2%

Maintain levy cushion

2024

4.8%

Establish levy cushion at 25% of maximum

2025

2%

Maintain levy cushion at 75% of maximum

2026
2%; assess levy scenarios for 2027
Recommendation

Maintain levy cushion at 75% of maximum

26

Potential Levy Scenarios for Consideration

Amount

% Increase Additional 2026 % of Max in
from 2025 Levy collections
2026
-

Estimated
Homeowner
Impact

2025 Tax Levy

$ 88,385,601

0%

$

73.5%

75% Levy

$ 90,180,054

2.0%

$

1,794,453

75.0%

$85

Inflation rate increase

$ 92,274,567

4.4%

$

3,888,966

76.7%

$87

1990 Inflation catch-up

$ 97,955,722

10.8%

$

9,570,121

81.5%

$92

27

Scenarios - Pros and Cons
2026 Levy Scenario

Pros

Cons

Flat levy

Taxpayer relief

May require larger increase later

75% of Max in 2026,
Evaluate alternatives for
2027 - recommended

Maintains a steady increase
Maintains cushion that supports
high credit quality

May not keep up with inflation

Inflation rate increase
Provides additional levy dollars
(4.4% based on King County with a moderate increase
forecast)

Inflation catch-up (based
on 1990 starting point)

Maintains buying power
Adds additional dollars to levy
collection and may reduce the
need for future G.O. bond funding

Does not provide significant additional levy dollars
Reduces cushion
If inflation exceeds 2%, cushion will be fully eroded
over time
Changes levy approach without sufficient analysis
Increases taxpayer burden
Reduces cushion
If inflation exceeds 2%, cushion will be fully eroded
over time
Changes levy approach without sufficient analysis

28

Recommendation - Stay the Course for 2026
• Staff recommendation provides for full funding of the Port's legacy
environmental clean-up obligation based on current best estimates
• Taxpayers are experiencing tax increases as well as inflationary cost increases
and softening economic growth
• Recommendation balances tax levy as a funding source and as support for a
strong revenue bond rating
• 2026 has no funding constraints: levy projected to have a $24 million surplus
balance in 2026
• Fundamental problem is the 1% levy limit per RCW
29

Further Recommendations - Evaluate Alternatives
• 2026 - Focus on resource conscious approach to add funding capacity
- Manage expense growth
- Increase revenues
- Prioritize and value engineer capital spending
• Continue monitoring environmental liabilities and adjust strategy as needed to
ensure full funding
• Monitor additional capital needs
• Develop scenarios and analysis for Commission consideration
• Evaluate levy approaches that consider Port-wide resources and financial
resiliency

30

Remaining 2026 Budget Schedule
• Adoption of 2026 Budget

Nov. 18, 2025

• File the Statutory Budget with King County

Nov. 26, 2025

• Release the 2026 Final Budget Document

Dec. 5, 2025

31

Appendix

32

2026 Budget Process Recap
Jun 26

Commission Budget Retreat

Jul 23

2026 Budget Development Briefing

Sept 23

2026 Central Services Operating and Capital Budgets Briefing and Port Wide Rollup

Oct 14

2026 Aviation Division Operating Budget Briefing

Oct 14

2026 Maritime and EDD Operating and Capital Budgets Briefing

Oct 21

Preliminary 2026 Budget Document provided to the Commission

Oct 21

Preliminary 2026 Budget Document released to the public

Oct 28

2026 Aviation Division Capital Budget Briefing

Oct 28

Tax Levy & Draft Plan of Finance Commission Briefing

Nov 11

Introduction & Public Hearing of the Preliminary 2026 Budget

Nov 18

Adoption of the 2026 Budget

Nov 26

File the 2026 Statutory Budget with King County

Dec 5

Release the 2026 Final Budget and Draft Plan of Finance

33

2026 Business Activity Forecasts
Aviation Division:
• Passenger volumes for 2026 projected to be 54.1M, 1.7% higher than 2025
forecast
• Long-term focus on capital planning and projects
Maritime Division:
• Cruise forecasts a record 330 vessel sailings with over 2.0 million passengers
and 102% occupancy rate
• Grain volume budgeted at 3.2 million metric tons, a 9.3% decrease from the
2025 budget
Economic Development Division:
• Commercial Properties target 90% occupancy rate at the end of 2026
34

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
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
Sustainable Aviation Fuels & Air Emissions Program
Carbon Initiative
Community Biz Connector (Regional Small Biz Partnerships)
Public Market Study
14) Seattle Aquarium Partnership
Green Economy
15) Friends of the waterfront
Sub Total
Payroll charged to the Levy
Grand Total

3

2026
Proposed
Budget
2,195
617
950
2,134
518
1,400
180
4,972
670
1,653
523
2,463
250
50
2,540
-

% of the 2026
Budget
Funded
by the levy
0.0%
0.0%
100.0%
100.0%
100.0%
43.1%
100.0%
100.0%
100.0%
77.0%
100.0%
30.7%
55.4%
12.2%
100.0%
100.0%
9.1%
0.0%
0.0%
0.0%
0.0%
100.0%
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
100
150
350
100
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
150
380
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
300
380
50
750

2,000

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

18,691

18,803

19,591

20,642

13,577

66%

433
19,124

589
19,392

781
20,372

848
21,491

848
14,426

100%
67%

400

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

35

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
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%

36

2026 Operating Budget for Aviation
($ in '000s)

2023

2024

2024

2025

Actual

Actual

Budget

Budget

Inc/(Dec)
Change from 2025
$
%

Operating Revenues
Aeronautical
Airport Non-Aero Revenues
Total
Lease Interest Income
Total Operating Rev plus Lease Interest Income

479,697
326,592
806,289
806,289

520,942
348,212
869,154
869,154

563,836
372,280
936,117
936,117

617,786
367,381
985,167
9,872
995,039

53,950
(4,899)
49,050
9,872
58,922

9.6%
-1.3%
5.2%
0.0%
6.3%

O&M Expenses w/o Pension Credit
DRS Pension Credit
O&M Expenses with Pension Credit

469,263
(23,572)
445,691

548,405
(18,577)
529,828

553,222
553,222

588,135
588,135

34,913
34,913

6.3%
0.0%
6.3%

Lease Interest Expense
SBITA Interest Expense
Total Operating Exp plus Lease Interest Exp

4
384
446,079

8
352
530,187

254
553,476

7,897
203
596,235

7,897
(51)
42,759

0.0%
-19.9%
7.7%

Net Operating Income (with Pension Credit)

360,598

339,326

382,895

397,032

14,138

3.7%

37

2026 Operating Budget for Seaport
($ in '000s)

2023

2024

2024

2025

Inc/(Dec)
Change from 2025
$
%

Actual

Actual

Budget

Budget

Operating Revenues
Maritime
Economic Development
NWSA/Joint Venture
1)
Stormwater Utility/ELIM
Central Services
Total
Lease Interest Income
Total Operating Rev plus Lease Interest Income

99,648
(24)
57,636
5,192
539
162,991
162,991

106,811
8
61,406
5,635
534
174,395
174,395

118,111
3
56,920
8,260
183
183,476
183,476

110,425
16
56,972
6,057
259
173,728
14,919
188,647

(7,686)
13
52
(2,203)
76
(9,749)
14,919
5,170

-6.5%
423.8%
0.1%
-26.7%
41.3%
-5.3%
0.0%
2.8%

Operating Expenses
Maritime
Economic Development
Joint Venture
Stormwater Utility/ELIM
Central Services
O&M Expenses w/o Pension Credit
DRS Pension Credit
O&M Expenses with Pension Credit

93,596
3,351
3,466
4,726
5,205
110,345
(5,137)
105,208

101,991
2,951
2,354
5,953
13,777
127,026
(4,212)
122,814

103,748
3,890
1,763
5,574
10,092
125,067
125,067

115,962
3,344
5,154
5,661
12,885
143,007
143,007

12,214
(546)
3,391
88
2,793
17,940
17,940

11.8%
-14.0%
192.3%
1.6%
27.7%
14.3%
0.0%
14.3%

Lease Interest Expense
SBITA Interest Expense
Total Operating Exp plus Lease Interest Exp

95
194
105,496

67
580
123,460

17
158
125,241

18
402
143,427

1
244
18,185

5.8%
154.7%
14.5%

Net Operating Income (with Pension Credit)

57,784

51,581

58,410

30,721

(27,689)

-47.4%

Notes:
1) Includes NWSA Distributable Revenue

38

2026 Comprehensive Budget
(Combined Operating & Non-Operating Items)
($ in 000s)

2023

2024

2025

Actual

Actual

Budget

2026
Proposed
Budget

Revenues
1. Operating Revenues
2. Tax Levy
3. Passenger Facilities Charges
4. Customer Facilities Charges
5. Fuel Hydrant
6. Non-Capital Grants and Donations
7. Capital Contributions
8. Interest Income
9. Lease Interest Income
Total

969,281
82,313
95,681
24,657
6,681
19,192
36,309
94,541
1,328,655

1,043,549
85,885
99,364
24,896
6,389
3,491
94,282
81,374
1,439,231

1,119,593
88,390
100,944
25,057
6,985
4,884
53,329
72,631
1,471,812

1,158,895
90,180
102,054
25,327
6,986
2,209
54,699
74,857
24,791
1,539,997

39,302
1,790
1,110
270
1
(2,675)
1,369
2,226
24,791
68,185

3.5%
2.0%
1.1%
1.1%
0.0%
-54.8%
2.6%
3.1%
0.0%
4.6%

Higher operating revenues from each division
Proposed a 2.0% increase in 2026
Higher enplanements than 2025 budget
Slightly increase from 2025 budget

Expenses
1. Operating Expenses
2. Depreciation
3. Revenue Bond Interest Expense
4. GO Bond Interest Expense
5. Non-Op Environmental Expense
6. Public Expense
7. Other Non-Op Rev/Expenses
8. Special Item Income/Expense
Total

550,899
256,740
146,686
10,162
10,056
20,869
944
996,356

652,642
277,917
150,434
14,365
3,072
11,150
13,425
91,107
1,214,112

678,288
267,028
182,905
15,323
14,800
7,597
(18,295)
1,147,646

731,141
308,165
210,147
17,309
14,800
6,263
17,150
1,304,976

52,853
41,137
27,242
1,986
(1,334)
35,445
157,329

7.8%
15.4%
14.9%
13.0%
0.0%
-17.6%
-193.7%
0.0%
13.7%

Higher operating expenses from each division
More new assets coming to service
New bond issuances in 2026
Higher Debt Insurance Costs in 2026

Revenues over Expenses

332,299

225,118

324,166

235,021

(89,145)

-27.5%

Inc/(Dec)
Change from 2025
$
%

Explanations

Lower Non-Capital Federal Grant in 2026
Higher Capital Federal Grant in 2026
Higher interest rates and fund balance in 2026
Due to new GASB 87

Lower Public Expenses in 2026
Significant decrease in HMT

39

2026 FTE Summary
Aviation

Maritime Econ Dev.

Central
Services

Total

2025 Approved FTE's
Mid Year Approval
Eliminated
Net Transfers
Adjusted 2025 FTE's 1
2026 Budget
Eliminated
Transferred
New FTE's
Total 2026 Changes

1,381.4
3.0
(7.0)
1,377.4

321.5
3.0
324.5

18.0
18.0

976.8
6.2
983.0

2,697.6
12.2
(7.0)
2,702.8

10.0
10.0

-

-

(5.0)
7.0
2.0

(5.0)
17.0
12.0

Proposed 2026 FTE's

1,387.4

324.5

18.0

985.0

2,714.8

• Propose a net
increase of 12.0 FTEs
for 2026
• 10.0 for Aviation
• 2.0 for Central
Services

Notes:
1) Includes FTEs from Stormwater Utility in Maritime Division.
40

Equity in Budgeting
Highlights by
Division

41

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.

2026 Port Wide Equity Spending by Category

43

Port Wide Equity Spending Funded by Tax Levy

44

2026 Equity Spending Highlights
• Workforce Development Programs ($4,173K)
- Airport Employment Center ($1,653K)
- Maritime Workforce Investments ($670K)
- Construction Pre-Apprenticeship Program ($750K)
- Maritime High School ($100K)
• South King and Port Communities Fund ($1,945K)
- Total SKPCF is $2,195K if including $250K in Diversity in Contracting in EDD
• Noise Part 150 Study ($750K)
• Transportation Pilot for SEA workers "SEA Moves" ($750K)
• Duwamish Valley Community Equity Program ($617K)

45

2026 Equity Spending Highlights - Cont.
• Veteran's Program ($361K)
• Childcare Initiative Implementation ($350K)
• High School Internship Program ($290K)
• Language Access Fund - Port wide ($229K)
• Maritime Blue ($180K)
• Equity Assessment Part 2 ($100K)
• Taxi Driver Employment Navigator ($65K)
• Immigration Rapid Response Contract ($30K)
• Employee Resource Groups ($20K)
46

2026 levy Sources and Uses
($ million)
SOURCES OF TAX LEVY FUNDS
2026 Beginning Levy Fund Balance
Annual Tax Levy
Total Sources
USES OF TAX LEVY FUNDS
G.O. bond debt service (existing)
Non-Airport Capital Investments
Community Programs
Aviation NOISE
Total Uses
Projected Ending 2026 Levy Fund Balance

2026
$
18.6
90.2
$ 108.8

$

$

38.9
25.4
15.5
5.0
84.8

$

24.0

47

3%, 4%, 5% Annual Levy Increase Reference

75% Levy
3% Levy Increase
4% Levy Increase
5% Levy Increase

$
$
$
$

Amount
90,180,054
91,037,169
91,921,025
92,804,881

% Increase Additional 2026
from 2025 Levy collections
2.0% $
1,794,453
3.0% $
2,651,568
4.0% $
3,535,424
5.0% $
4,419,280

% of Max in
2026
75.0%
75.7%
76.4%
77.2%

Estimated
Homeowner
Impact
$85
$86
$86
$87

48

3%, 4%, 5% Annual Levy Increase Reference

49

Tax Levy Summary
• Levy amount is approved annually by the Commission
• Levy can be leveraged by issuing General Obligation (G.O.)
bonds
• Current Levy uses:
- G.O. bond debt service
- Environmental remediation and sustainability
- Regional transportation mobility
- Community: equity, workforce, economic development
- Investments in seaport infrastructure

• The Port may approve a levy amount up to the maximum
allowable within statutory limits ($120.2 million in 2026)
• 2026 levy proposed to be $90.2 million
50

2015-2026 Tax Levy & Millage Rate (1)

(1) Millage rate represents the amount per every $1,000 of assessed valuation

51

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

52

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 nonoperating interest expense.
53