Item No.
___11a_attach 1 ____
Date of Meeting: September 9, 2026

PORT OF SEATTLE
Q2 2026 FINANCIAL PERFORMANCE REPORT

AS OF JUNE 30, 2026

I.

PORTWIDE FINANCIAL & PERFORMANCE REPORT 06/30/26

TABLE OF CONTENTS
PAGE
I.

Portwide Performance Report

3-7

II.

Aviation Division Report

8-16

III.

Maritime Division Report

17-21

IV.

Economic Development Division Report

V.

Central Services Division Report

22
23-27

2

I.
I.

PORTWIDE FINANCIAL & PERFORMANCE REPORT 06/30/26
PORTWIDE

EXECUTIVE SUMMARY
For 2026 financial reporting, the Port created the 2026 revised budget ledger in compliance with the new
Governmental Accounting Standards Board (GASB)103 that redefined operating and non-operating revenues
and expenses. Using the revised budget and forecast will help provide a better apple-to-apple comparison
with the 2026 actuals. The implementation of this rule resulted in a $23.2M reduction in Operating Revenues
and $27.3M increase in Operating Expenses (and $50.5M reduction in NOI) in the 2026 revised budget.
Airport passenger volume for the second quarter of 2026 was 0.1% higher than the same period in 2025.
Domestic passenger volume was down 0.4% while international passengers increased by 2.9%. Passenger
growth for 2026 is expected to be 0.8% higher compared to 2025 actual with approximately 53.1M passengers
expected at Seattle-Tacoma International Airport (SEA) in 2026. Non-Aeronautical revenues are anticipated to
be above the revised budget by $13.8M or 4.0% mainly due to projected higher revenues in Public Parking,
Rental Cars, Flight Kitchens, and Airport Dining & Retail.
For the second quarter of the year, total operating revenues were $1.6M or 0.3% above revised budget and
$29.0M or 5.6% increase compared to the same period in 2025 while total operating expenses were $14.6M or
3.9% lower than revised budget and $34.4M or 10.7% over the same period in 2025. Net operating income
before depreciation was $16.2M or 9.1% above revised budget and $5.4M or 2.7% below 2025.
For the full year, we are projecting operating revenues to be $11.0M above revised budget and $25.1M or 2.2%
higher than 2025. Operating expenses are expected to be $479K above revised budget and 86.7M or 12.9%
over 2025. Excluding the $26.0M DRS pension credit and $21.8M in legal settlement credit in 2025, total
operating expenses are projected to be $38.9M or 5.4% higher than 2025. The net income before depreciation
is expected to be $10.5M above revised budget.
PORTWIDE FINANCIAL SUMMARY

$ in 000's
Aeronautical Revenues
Airport Non-Aero Revenues
Seaport Revenues
Operating Revenues
GASB 87_96_103 Revenues
Total Operating Revenues GASB Comparable Basis
O&M Expenses
GASB 87_96_103 Expenses
Total Operating Expenses GASB Comparable Basis
NOI before Depreciation
Depreciation
NOI after Depreciation

2024 YTD

2025 YTD

2026 YTD

Actual
252,437
154,536
78,665
485,638
1,875
487,513
289,103
2,499
291,602
196,535
130,832
65,703

Actual
273,752
166,188
80,616
520,555
6,969
527,524
321,204
(4,995)
316,209
199,352
142,924
56,428

Actual
302,116
165,737
81,686
549,539
14,485
564,024
355,574
4,523
360,097
193,965
157,292
36,672

2026 YTD

2026 YTD

Budget
Revsd_Bud
301,475
301,855
172,005
164,133
81,912
81,962
555,392
547,950
4,573
12,395
559,966
560,345
360,470
370,138
13,922
4,251
374,392
374,388
194,923
177,812
154,578
154,578
40,345
23,235

Actual vs. Revsd_Bud
Variance
$
%
262
0.1%
1,604
1.0%
(276)
-0.3%
1,589
0.3%
2,090
16.9%
3,679
0.7%
14,563
3.9%
(272)
-6.4%
14,291
3.8%
16,153
9.1%
(2,715)
-1.8%
13,438
57.8%

Change from 2025
Incr (Decr)
$
%
28,364
10.4%
(451)
-0.3%
1,070
1.3%
28,984
5.6%
7,516
107.9%
36,500
6.9%
34,371
10.7%
9,518
-190.6%
43,888
13.9%
(5,387)
-2.7%
14,369
10.1%
(19,756)
-35.0%

2026 YTD Actuals vs. 2026 YTD Revised Budget:
• Total Operating Revenues: $1.6M higher than revised budget due to higher revenues in Aeronautical
Revenues, Public Parking, Airport Utilities, and Conference & Event Centers.
• Total Operating Expenses: $14.6M below revised budget mainly due to delay in Outside Services spending,
less Equipment purchases, Travel & Othe Employee expenses, and B&O Taxes.
• NOI before Depreciation: $16.2M above revised budget.

3

I.

PORTWIDE FINANCIAL & PERFORMANCE REPORT 06/30/26

2026 YTD Actuals vs. 2025 YTD Actuals:
• Total Operating Revenues were $29.0M higher compared to 2025 mainly due to higher revenues in all lines
of businesses, except Rental Cars and NWSA Distributable Revenue.
• Total Operating Expenses were $34.4M higher compared to 2025 due to higher expenses in Payroll, Outside
Services, and Other Expenses.
MAJOR OPERATING REVENUES SUMMARY
2024 YTD

2025 YTD

2026 YTD

2026 YTD

2026 YTD

$ in 000's
Aeronautical Revenues

Actual
252,437

Actual
273,752

Actual
302,116

Budget
Revsd_Bud
301,475
301,855

Public Parking
Rental Cars - Operations
Rental Cars - Operating CFC
ADR & Terminal Leased Space
Ground Transportation
Employee Parking
Airport Commercial Properties
Airport Utilities
International Place
Clubs and Lounges
Cruise
Recreational Boating
Fishing & Operations
Grain
Maritime Lease Portfolio
Conference & Event Centers
NWSA Distributable Revenue
Other
Operating Revenues (w/o Aero)
Total Operating Revenues
GASB 87_96_103 Revenues
Total Operating Revenues GASB Comparable Basis

58,986
15,832
6,916
35,435
11,853
5,223
7,900
4,513
6,753
18,415
8,321
5,471
2,355
8,341
3,687
29,664
3,535
233,201
485,638
1,875
487,513

58,697
17,557
8,145
36,331
11,784
6,272
8,926
5,287
4,143
8,859
15,716
9,130
6,115
2,933
8,182
3,867
32,221
2,638
246,804
520,555
6,969
527,524

59,817
18,264
39,230
11,392
6,764
8,539
5,529
6,029
8,916
19,232
9,570
5,849
2,652
9,090
4,619
27,023
4,910
247,423
549,539
14,485
564,024

57,030
17,226
8,378
40,662
12,179
6,959
9,526
4,985
5,775
8,633
19,820
9,497
5,657
2,212
9,099
4,069
29,201
3,008
253,917
555,392
4,573
559,966

57,030
17,226
40,921
12,179
6,959
9,526
4,985
5,775
8,633
19,820
9,497
5,657
2,212
9,099
4,069
29,201
3,306
246,095
547,950
12,395
560,345

2024 YTD

2025 YTD

2026 YTD

2026 YTD

2026 YTD

Actual
103,497
88,341
18,260
63,807
17,162
4,852
5,686
2,827
6,110
3,027
13,261
(37,726)
289,103
2,499
291,602

Actual
118,613
98,903
18,373
64,213
18,235
4,367
6,204
3,129
9,669
2,924
14,149
(37,576)
321,204
(4,995)
316,209

Actual
122,618
103,307
21,098
79,647
16,909
5,722
5,994
2,802
11,808
3,998
26,893
(45,222)
355,574
4,523
360,097

Budget Revsd_Bud
121,288
121,288
102,669
102,669
26,056
26,056
95,635
93,864
17,508
17,508
7,486
7,486
5,688
5,688
5,342
5,342
11,177
11,177
5,794
5,800
13,051
24,483
(51,225)
(51,225)
360,470
370,138
13,922
4,251
374,392
374,388

Actual vs. Revsd_Bud
Variance
$
%
262
0.1%
2,787
4.9%
1,038
6.0%
0.0%
(1,692)
-4.1%
(786)
-6.5%
(195)
-2.8%
(987)
-10.4%
544
10.9%
253
4.4%
283
3.3%
(588)
-3.0%
73
0.8%
192
3.4%
440
19.9%
(10)
-0.1%
549
13.5%
(2,177)
-7.5%
1,604
48.5%
1,328
0.5%
1,589
0.3%
2,090
16.9%
3,679
0.7%

Change from 2025
Incr (Decr)
$
%
28,364
10.4%

Actual vs. Revsd_Bud
Variance
$
%
(1,330)
-1.1%
(638)
-0.6%
4,958
19.0%
14,217
15.1%
599
3.4%
1,763
23.6%
(305)
-5.4%
2,541
47.6%
(631)
-5.6%
1,802
31.1%
(2,410)
-9.8%
(6,003)
11.7%
14,563
3.9%
(272)
-6.4%
14,291
3.8%

Change from 2025
Incr (Decr)
$
%
4,005
3.4%
4,404
4.5%
2,725
14.8%
15,434
24.0%
(1,326)
-7.3%
1,355
31.0%
(210)
-3.4%
(328)
-10.5%
2,139
22.1%
1,074
36.7%
12,745
90.1%
(7,646)
20.3%
34,371
10.7%
9,518
-190.6%
43,888
13.9%

1,120
707
(8,145)
2,898
(391)
492
(387)
242
1,886
56
3,515
440
(266)
(280)
908
752
(5,198)
2,272
619
28,984
7,516
36,500

1.9%
4.0%
-100.0%
8.0%
-3.3%
7.8%
-4.3%
4.6%
45.5%
0.6%
22.4%
4.8%
-4.4%
-9.6%
11.1%
19.4%
-16.1%
86.1%
0.3%
5.6%
107.9%
6.9%

MAJOR OPERATING EXPENSES SUMMARY

$ in 000's
Salaries & Benefits
Wages & Benefits
Payroll to Capital Projects
Outside Services
Utilities
Equipment Expense
Supplies & Stock
Travel & Other Employee Expenses
Third Party Mgmt Op Exp
B&O Taxes
Other Expenses
Charges to Capital Projects/Overhead Alloc
O&M Expenses
GASB 87_96_103 Expenses
Total Operating Expenses GASB Comparable Basis

4

I.

PORTWIDE FINANCIAL & PERFORMANCE REPORT 06/30/26

PORTWIDE FINANCIAL YEAR-END FORECAST SUMMARY
2024

2025

2026

Actual
520,942
340,360
160,537
1,021,838
29,671
1,051,509
652,642
6,731
659,373

Actual
545,307
363,215
213,924
1,122,446
12,567
1,135,013
672,311
4,698
677,009

Forecast
613,884
357,877
175,747
1,147,508
24,791
1,172,299
758,963
8,521
767,484

NOI before Depreciation

369,196

450,135

388,545

427,754

Depreciation
NOI after Depreciation

277,917
91,279

298,355
151,780

308,165
80,380

308,165
119,588

$ in 000's
Aeronautical Revenues
Airport Non-Aero Revenues
Seaport Revenues
Operating Revenues
GASB 87_96_103 Revenues
Total Operating Revenues GASB Comparable Basis
O&M Expenses
GASB 87_96_103 Expenses
Total Operating Expenses GASB Comparable Basis

2026

Fcst vs. Revsd_Bud
Variance
$
%
(4,681)
-0.8%
13,790
4.0%
1,920
1.1%
11,029
1.0%
0.0%
11,029
0.9%
(479)
-0.1%
0.0%
(479)
-0.1%

Change from 2025
Incr (Decr)
$
%
68,577
12.6%
(5,338)
-1.5%
(38,177)
-17.8%
25,062
2.2%
12,224
97.3%
37,285
3.3%
86,652
12.9%
3,823
81.4%
90,475
13.4%

377,995

10,550

2.8%

(61,590)

-13.7%

308,165
69,830

10,550

0.0%
15.1%

9,811
(71,400)

3.3%
-47.0%

2026

Budget
Revsd_Bud
617,786
618,565
367,381
344,087
173,728
173,827
1,158,895 1,136,479
1,596
24,791
1,160,491 1,161,270
731,141
758,484
35,864
8,521
767,005
767,004

Year-End Forecast
• Total Operating Revenues are expected to be $11.0M above revised budget due to higher Airport NonAero Revenues and Maritime Revenue.
• Total Operating expenses are expected to be $479K below revised budget mainly due to higher Payroll and
Outside Services.
• Net Operating Income before Depreciation is expected to be $10.5M above revised budget.
KEY PERFORMANCE METRICS

Total Passengers (in 000's)
Landed Weight (lbs. in millions)
Passenger CPE (in $)
Grain Volume (metric tons in 000's)
Cruise Passenger (in 000's)
Shilshole Bay Marina Occupancy

2025
YTD
Actual
24,899
15,885
N/A
2,952
747
97.2%

2026
YTD
Actual
24,912
16,112
N/A
3,009
776
96.5%

2025

2026

2026

Actual
Forecast Budget
52,641
53,122
53,474
32,806
33,138
32,916
19.06
21.43
21.19
5,157
4,120
3,210
1,898
2,027
2,027
97.2%
97.0%
97.7%

5

Fav (UnFav)
Forecast vs. Budget
Chg.
(352)
222
0.2
910
-0.7%

%
-0.7%
0.7%
1.1%
28.3%
0.0%
-0.7%

Incr (Decr)
2026 Forecat vs.
2025 Actual
Chg.
%
481
0.9%
332
1.0%
2.4
12.4%
(1,037)
-20.1%
129
6.8%
-0.2%
-0.2%

I.

PORTWIDE FINANCIAL & PERFORMANCE REPORT 06/30/26

KEY BUSINESS EVENTS
Earlier this year, the Port welcomed the 2026 Alaska cruise season with 330 vessel calls and 2.1 million revenue
passengers, the highest in Port history. MSC Cruises and Virgin Voyages joined the lineup, expanding the
number of homeport vessels to 16. Eleven Seattle-based ships will connect to shore power this year, with
additional connections planned at Pier 91 in 2027. The Port also approved a long-term lease amendment with
Norwegian Cruise Line Holdings (NCLH), extending their homeport partnership through 2035, with a possible
extension to 2045 based on sustainability progress. This agreement supports stable passenger volumes,
advances environmental initiatives, and strengthens community benefits. NCLH will homeport four ships at
Pier 66 in 2026, reinforcing Seattle's role as a leading Alaska cruise gateway.
Seattle-Tacoma International Airport (SEA) celebrated Alaska Airlines' new nonstop flights to London and
Reykjavik, further expanding its international network. Alaska also launched its first European route with
summer-season service to Rome, strengthening Seattle's global connectivity. SEA now offers 62 international
options to 36 destinations on 29 airlines, including new services from Cathay Pacific and Delta.
Eighteen community-led organizations will receive $850,000 to support environmental improvement projects
in neighborhoods surrounding Seattle-Tacoma International Airport (SEA), including Beacon Hill, Rainier Valley,
Kent Valley, and the Duwamish Valley. This marks the largest group funded to date through the South King and
Port Communities Fund Environmental Improvements Program. These projects will expand access to green
spaces, restore habitats, and enhance environmental education in historically underserved communities.
The Port also awarded more than $600,000 to 35 tourism-related projects through the 2026-27 Tourism
Marketing Support Program, following a record number of applications. These grants will help nonprofit and
civic organizations promote visitor spending, support local jobs, and strengthen communities across King
County and Washington state. The program emphasizes equity by supporting under-resourced partners and
elevating lesser-known destinations where tourism can drive meaningful economic growth.
Additionally, the Port released the draft EIS for its Sustainable Airport Master Plan and opened it for public
comment. The analysis reviews 31 proposed projects, including a second terminal, an elevated busway, new
cargo facilities, and $40 million in road improvements.
The Port celebrated Earth Month by announcing its Sustainable Century and Fly Quiet Award winners. These
awards recognize partners for environmental leadership, innovation, education, equity, and noise reduction.
The Sustainable Century Awards recognizes voluntary efforts that support the environment and equitable
communities across four categories. Fly Quiet promotes airline noise-abatement by evaluating flight
procedures and aircraft noise levels. It honors airlines with the strongest performance in these areas.
The Port launched a summer of global soccer events at SEA with surprise performances and themed activities,
supported by extensive preparation to ensure smooth travel. SEA brought on hundreds of volunteers and
installed temporary banners, decals, digital signage, and a Big Screen Spectator Zone throughout the airport.
SEA also completed the C Concourse Expansion, adding 145,000 square feet of bright, nature-inspired space
with new dining and retail options, SEA Sparks kiosks, the Tree at C, and the Grand Stairs. New traveler
amenities include prayer, sensory, and nursing rooms, a performance area, and The Lookout at C. This project is
the first to fully apply the Port's Sustainable Evaluation Framework.

6

I.

PORTWIDE FINANCIAL & PERFORMANCE REPORT 06/30/26

CAPITAL SPENDING SUMMARY

$ in 000's

2026

2026

2026

2026

YTD Actual

Forecast

Budget

Plan of Finance

Budget Variance
$

%

Aviation

365,909

658,616

658,954

835,887

338

Maritime

55,611

98,488

93,384

80,958

(5,104)

-5.5%

Central Services & Other (note 1)

4,430

14,817

19,817

16,088

5,000

25.2%

425,950

771,921

772,155

932,933

234

0.0%

TOTAL

0.1%

Note:
(1) "Other" includes 100% Port legacy projects in the North Harbor and Storm Water Utility Small Capital projects.

Total capital spending is projected to be $771.9M, 100.0% of the budget for the year.
PORTWIDE INVESTMENT PORTFOLIO
During the second quarter of 2026, the investment portfolio earned 3.40% versus the benchmark's (the Bank of
America Merrill Lynch 1-3 Year US Treasury & Agency Index) of 4.16%. Over the last twelve months, the
portfolio and the benchmark have earned 3.50% and 3.78%, respectively. Since the Port became its own
Treasurer in 2002, the life-to-date earnings of the Port's portfolio and the benchmark are 2.48% and 2.11%,
respectively.

7

II.
II.

AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26
AVIATION DIVISION

FINANCIAL SUMMARY
Fcst vs. Rvsd_Bud Change from 2025
Incr(Decr)
Variance

2024

2025

2026

2026

2026

Figures in ($ in 000's)

Actual

Actual

Forecast

Budget

Revsd_Bud

$

%

$

%

Operating Revenue
Aeronautical Revenues
Non-Aeronautical Revenues
Total Operating Revenue
GASB 87_96_103 Revenues

520,942
340,360
861,301
15,948

545,307
363,215
908,522
(7,646)

613,884
357,877
971,761
9,872

617,786
367,381
985,167
(13,422)

618,565
344,087
962,652
9,872

(4,681)
13,790
9,109
-

-1%
4%
1%
0%

68,577
(5,338)
63,239
17,518

13%
-1%
7%
-229%

Total Operating Revenues GASB Comparable Basis

877,249

900,876

981,633

971,745

972,524

9,109

1%

80,757

9%

Total Operating Expenses 1
GASB 87_96_103 Expenses
Total Operating Expenses GASB Comparable Basis

529,828
2,033
531,861

537,028
5,167
542,195

590,810
8,101
598,911

588,135
9,800
597,935

589,858
8,101
597,958

953

0%

53,783

10%

953

0%

56,716

10%

Net Operating Income w/o GASB Comparable Basis
Net Operating Income GASB Comparable Basis

331,473
345,388

371,495
358,681

380,951
382,722

397,032
373,810

372,795
374,566

8,157
8,157

2%
2%

9,456
24,041

3%
7%

Debt Service Coverage
ADF Balance (in 000's)
CPE

1.89
743,355
18.26

1.90
828,716
19.06

1.60
882,596
21.43

1.64
882,204
21.16

1.62
882,204
21.19

(0.02)
392
0

-1%
0%
1%

(0.30)
53,880
0

-16%
7%
12%

Non-Aeronautical NOI ($ in 000's)2
Enplanned Passengers (in 000's)

178,268
26,295

184,831
26,317

157,488
26,514

170,452
27,031

146,253
27,031

11,235
(517)

8%
-2%

(27,344)
197

-15%
1%

Capital Expenditures (in 000's)

684,442

840,459

658,616

658,954

658,954

(338)

0% (181,843)

-22%

1

Payroll expenses include DRS pension credits in 2024 and 2025

2

Unadjusted - not including CFC Surplus or GASB Comparable

2026 Forecast vs. 2026 Revised Budget
Total Operating Revenues are forecasted at $972M, an increase of $9M, 1%, above the Revised Budget,
primarily driven by higher non-aeronautical revenues.
• Aeronautical Revenue is forecasted to be $4.7M below the Revised Budget, primarily due to a 3.2%
($5.8M) decrease in net debt service resulting from the delayed in-use date of Concourse A Expansion,
partially offset by a $1.2M increase in expenses.
• Non-Aeronautical Revenue is forecasted to be $13.8M above the Revised Budget, reflecting higher
revenues from Public Parking, Lounges, Rental Cars, Commercial Properties and Flight Kitchens. The
South Concourse Lounge construction delay adds approximately three months of incremental
operating revenue.
Operating Expenses are forecasted to be $953K above the Revised Budget.
• Payroll is forecasted to be $4.6M under budget, primarily due to vacancies and lower charges to capital
on filled positions.
• Outside Services are forecasted to be $2.1M over budget, primarily due to a $6.1M capital-to-expense
adjustment for the South Concourse Evolution (SCE) Cargo 7 Hardstand/Holdroom design work and
$1.6M in on-site consultant costs related to the accelerated SCE project schedule, partially offset by
$5.1M in projected savings in professional services, janitorial, and contract other equipment expenses.
• Other Expenses are forecasted to be $895K over budget, primarily due to $1.8M in maintenance
materials, partially offset by savings in training and travel and lower charges to capital.
• Other Division Charges are forecasted to be $2.2M over budget, primarily from Central Services due to
anticipated higher costs for Legal, External Relations, and Port Construction Services, partially offset by
lower charges from Human Resources, Information & Communication Technology, Risk Management,
and divisional allocations.

8

II.

AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

A. BUSINESS EVENTS
• Cathay Pacific resumed non-stop service to Hong Kong
• Seattle Chocolate and Hudson closed temporarily and reopened
• C Concourse Expansion opened June 11, 2026
B. KEY PERFORMANCE METRICS

Key Performance Measures

Key Performance Metrics
Cost per Enplanement (CPE)

2024

2025

2026

2026

Actuals

Actuals

Forecast

Budget

Fcst vs Rsvd_Bud Change from 2025
Variance
Incr(Decr)
Revsd_Bud
$
%
$
%
2026

18.26

19.06

21.43

21.16

21.19

(0.24)

-1.1%

Non-Aeronautical NOI ($ in 000's)1

178,268

184,831

157,488

170,452

146,253

11,235

7.7%

(27,344) -14.8%

Other Performance Metrics 2
O&M Cost per Enplanement
Non-Aero Revenue per Enplanement
Debt per Enplanement (in $)
Debt Service Coverage
Days cash on hand (18 months = 547 days)

20.15
12.94
157.12
1.89
512.10

20.41
13.80
182.47
1.90
563.25

22.30
13.50
173.21
1.60
544.96

21.76
13.59
165.46
1.64
547.50

21.82
12.73
165.46
1.62
545.90

(0.47)
0.77
(7.75)
(0.02)
(0.94)

-2.2%
6.0%
-4.7%
-1.2%
-0.2%

9.3%
1.89
(0.30) -2.2%
(9.25) -5.1%
(0.30) -15.8%
(18.29) -3.2%

Airport Activity
Total Enplanements (in 000's)
Total Passengers

26,295
52,641

26,317
52,715

26,514
53,116

27,031
54,062

27,031
54,062

(517)
(947)

-1.9%
-1.8%

2.37

197
401

12.4%

0.7%
0.8%

1

Unadjusted - not including CFC Surplus or GASB Comparable

2

Includes DRS pension credit

Key Performance Metrics - 2026 Forecast vs. 2026 Revised Budget
• Non-Aeronautical NOI is forecasted to be $11.2M (7.7%) above the Revised Budget, driven by higher nonaeronautical revenues.
• Debt Service Coverage is forecasted to be 1.60.
9

II.
•
•

AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26
Non-Aeronautical Revenue is forecasted to be $13.8M above the Revised Budget, reflecting higher
revenues from Public Parking, Lounges, Rental Cars, Commercial Properties and Flight Kitchens.
Total passenger volume is forecasted to decrease by 1.8%, with a higher forecasted cost per enplanement
at $21.43.

C. OPERATING RESULTS
Division Summary - YTD Actuals
Total Airport Expense Summary (Q2)

Figures in ($ in 000's)
Operating Expenses
Payroll
Outside Services
Utilities
Other Expenses
Total Airport Direct Charges

Change from 2025
Incr(Decr)

2024 YTD
(Q2)

2025 YTD
(Q2)

2026 YTD
(Q2)

2026 YTD
(Q2)

2026 YTD
(Q2)

Actual vs. Rvsd_Bud
Variance

Actual

Actual

Actual

Budget

Revsd_Bud

$

%

$

%

102,225
42,557
13,220
5,593
163,596

117,688
43,919
13,570
11,573
186,748

123,360
51,665
12,512
8,022
195,557

124,973
59,975
12,472
10,508
207,929

124,973
59,971
12,472
10,538
207,955

1,614
8,306
(39)
2,517
12,398

1%
14%
0%
24%
6%

5,672
7,747
(1,058)
(3,551)
8,809

5%
18%
-8%
-31%
5%

1,308
1,566

1,609
2,184

1,748
2,450

1,667
1,667

1,667
1,667

(81)
(783)

-5%
-47%

139
266

9%
12%

Total Airport Expenses
Corporate
Police
Maritime/Economic Development/Other
Total Charges from Other Divisions

164,904
48,404
18,735
2,586
69,724

188,358
52,966
19,705
3,118
75,789

197,306
56,664
20,177
3,471
80,312

209,596
56,075
20,585
3,679
80,339

209,622
56,907
20,585
3,679
81,170

12,316
243
408
208
858

6%
0%
2%
6%
1%

8,949
3,698
472
353
4,523

5%
7%
2%
11%
6%

Total Operating Expenses
DRS Pension True-up Exp
Total Operating Expenses w/Pension True-Up
GASB 87_96_103 Expenses
Total Operating Expenses GASB Comparable Basis

234,629
234,629
1,024
235,653

264,146
264,146
1,799
265,945

277,617
277,617
4,189
281,806

289,935
289,935
4,908
294,843

290,793
290,793
4,059
294,851

13,175
13,175
(130)
13,045

5%

13,472
13,472
2,390
15,862

5%

Environmental Remediation Liability
Total Exceptions

5%
-3%
4%

5%
133%
6%

2026 YTD Actuals vs. 2026 YTD Revised Budget
Total Operating Expenses are $13M, 5%, under budget, primarily driven by the following:
•
•

•

•

Payroll is $1.6M under budget, primarily due to vacancy savings.
Outside Services are $8.3M under budget, including $8.2M in underspending for Professional Services
due to timing differences between budget and actuals and missed accruals. This is partially offset by
$1.3M in overspending for on-site consultants related to the South Concourse Evolution, Emergency
Repair of an Electrical Feeder, C Concourse Expansion, and North Main Terminal projects, as well as
support for the Flight Corridor Safety Program and tenant projects.
Other Expenses are $2.5M under budget, primarily due to lower spending on equipment, training and
travel, and general expenses, partially offset by higher spending on supplies and stock driven by
maintenance materials and capital-to-expense transfers.
Charges from Other Divisions are $858K under budget, primarily due to lower direct non-payroll and
wage costs, partially offset by higher allocated costs.

2025 YTD Actuals vs. 2026 YTD Actuals
Total Operating Expenses were $13.4M, 5%, higher compared to the same time period in 2025, primarily driven
by the following:
•
•
•

Payroll increased by $5.7M due to salaries and benefits increase year over year.
Non-payroll increased by $3.2M due to $7.7M in higher on-site consultant costs related to accelerated
schedule and timing of capital projects, along with $2.4M higher in equipment and other expenses,
partially offset by $5.7M in charges to capital projects.
Charges from other divisions increased by 6% or $4.5M due to higher Central Services allocated costs.

10

II.

AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26
Total Airport Expense Summary

Figures in ($ in 000's)
Operating Expenses
Payroll
Outside Services
Utilities
Other Expenses
Total Airport Direct Charges

2024

2025

2026

2026

2026

Fcst vs. Rvsd_Bud
Variance

Change from 2025
Incr(Decr)

Actual

Actual

Forecast

Budget

Revsd_Bud

$

%

$

%

223,027
104,086
25,543
22,150
374,806

243,179
115,992
26,959
24,957
411,087

248,847
126,149
26,992
20,612
422,600

253,455
124,030
26,936
19,657
424,077

253,455
124,030
26,936
19,717
424,138

4,609
(2,120)
(56)
(895)
1,538

2%
-2%
0%
-5%
0%

5,667
10,158
33
(4,345)
11,513

2%
9%
0%
-17%
3%

2,600
3,153

2,693
14,477

2,587
9,398

2,267
2,267

2,267
2,267

(320)
(7,131)

-14%
-315%

(106)
(5,079)

-4%
-35%

Total Airport Expenses
Corporate
Police
Maritime/Economic Development/Other
Total Charges from Other Divisions

377,406
124,058
39,709
7,232
170,999

413,780
93,940
42,925
7,493
144,358

425,187
118,661
39,248
7,714
165,623

426,344
114,558
39,200
8,033
161,790

426,405
116,220
39,200
8,033
163,453

1,218
(2,441)
(49)
319
(2,170)

0%
-2%
0%
4%
-1%

11,407
24,721
(3,677)
221
21,265

3%
26%
-9%
3%
15%

Total Operating Expenses w/o Pension True-Up
DRS Pension True-up Exp
Total Operating Expenses w/Pension True-Up
GASB 87_96_103 Expenses
Total Operating Expenses GASB Comparable Basis

548,405
(18,577)
529,828
2,033
531,861

558,138
(21,111)
537,028
5,167
542,195

590,810
590,810
8,101
598,911

588,135
588,135
9,800
597,935

589,858
589,858
8,101
597,958

(953)
(953)
(953)

0%

32,672
21,111
53,783
2,933
56,716

6%
-100%
10%
57%
10%

Environmental Remediation Liability
Total Exceptions

0%
0%
0%

2026 Forecast vs. 2026 Revised Budget
Total Operating Expense is forecasted to be $953K over Revised Budget, driven by the following:
•
•

•
•

Payroll under budget by $4.6M mostly due to vacancies and lower charges to capital on filled positions
Outside Service over budget by $2.1M mostly due to $6.1M change of capital to expense for South
Concourse Evolution (SCE) project Cargo 7 Hardstand/Holdroom and $1.6M onsite consultants mostly due
to accelerated schedule for the SCE project, offset by projected under budget in professional, janitorial and
contract other equipment expenses by $5.1M
Other Expenses over budget by $895K due to maintenance material over by $1.8M, offset by savings in
training and travels and lower charges to capital
Other Division Charges are forecasted to be $2.2M over budget, primarily from Central Services due to
anticipated higher costs for Legal, External Relations, and Port Construction Services, partially offset by
lower charges from Human Resources, Information & Communication Technology, Risk Management, and
divisional allocations.

Aeronautical Business Unit Summary - YTD Actuals
Aeronautical NOI (Q2)

Figures $ in 000's

2024 YTD
(Q2)

2025 YTD
(Q2)

2026 YTD
(Q2)

2026 YTD
(Q2)

2026 YTD
(Q2)

Actual vs. Revsd_Bud
Variance

Change from 2025
Incr(Decr)

Actual

Actual

Actual

Budget

Revsd_Bud

$

%

$

%

Rate Base Revenues
Airfield Movement Area
Airfield Apron Area
Terminal Rents
Federal Inspection Services (FIS)
Total Rate Base Revenues

74,894
13,414
134,447
19,948
242,702

80,564
15,960
140,124
24,042
260,690

89,039
16,749
156,944
25,875
288,607

88,976
17,129
156,639
25,843
288,587

89,170
17,142
156,797
25,857
288,966

(130)
(393)
147
17
(359)

0%
-2%
0%
0%
0%

8,476
789
16,820
1,832
27,917

11%
5%
12%
8%
11%

Airfield Commercial Area
Total Aeronautical Revenues
GASB 87_96_103 Revenues
Total Aeronautical Revenues GASB Comparable Basis

9,735
252,437
4
252,441

13,062
273,752
293
274,045

13,509
302,116
302,116

12,888
301,475
301,475

12,888
301,855
301,855

621
262
262

5%
0%
0%

447
28,364
(293)
28,071

3%
10%
-100%
10%

Total Aeronautical Expenses
GASB 87_96_103 Expenses
Total Aeronautical Expenses GASB Comparable Basis

162,767
150
162,917

180,612
146
180,759

181,616
144
181,760

194,455
88
194,543

194,864
88
194,951

(13,248)
56
(13,192)

-7%
64%
-7%

1,003
(2)
1,001

1%
-1%
1%

Aeronautical NOI GASB Comparable Basis

89,524

93,286

120,356

106,932

106,903

13,453

13%

27,070

29%

Aeronautical - 2026 YTD Actuals vs. 2026 YTD Revised Budget
Aeronautical operating expenses are $13.2M, or 7%, under budget due to lower year-to-date spending across
total operating expenses. Aeronautical revenues are in line with the Revised Budget, coming in $262K above
budget, resulting in Net Operating Income of $13.5M, or 13%, above budget for YTD Q2.
11

II.

AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

Aeronautical - 2026 YTD Actuals vs. 2025 YTD Actuals
Year-to-date Q2 2026 Aeronautical expenses were $1.0M, or 1%, higher compared to Q2 2025, primarily driven
by higher payroll costs of $1.9M, increased Outside Services costs of $1.0M, higher General and Promotional
Expenses of $1.0M, and Other Expenses of $2.0M, partially offset by lower allocation costs of $4.9M.
Aeronautical Net Operating Income increased by $27M, or 29%, compared to 2025, primarily due to higher
revenues from terminal rent and Airfield Movement Area charges.
Aeronautical Business Unit Summary - YE Forecast
2024

2025

2026

2026

2026

Fcst vs. Rvsd_Bud
Variance

Change from 2025
Incr(Decr)

Figures in ($ in 000's)

Actual

Actual

Forecast

Budget

Revsd_Bud

$

%

$

%

Rate Base Revenues
Airfield Movement Area
Airfield Apron Area
Terminal Rents
Federal Inspection Services (FIS)
Total Rate Base Revenues

170,821
32,270
279,722
15,206
498,019

164,804
33,404
271,462
48,849
518,520

180,891
34,892
320,057
52,257
588,097

183,818
35,416
319,223
53,542
591,999

184,220
35,443
319,543
53,571
592,777

(3,328)
(552)
514
(1,314)
(4,681)

-2%
-2%
0%
-2%
-1%

16,087
1,487
48,595
3,407
69,577

10%
4%
18%
7%
13%

Airfield Commercial Area
Total Aeronautical Revenues
GASB 87_96_103 Revenues
Total Aeronautical Revenues GASB Comparable Basis

22,922
520,942
7
520,949

26,787
545,307
415
545,722

25,787
613,884
613,884

25,787
617,786
617,786

25,787
618,565
618,565

(4,681)
(4,681)

0%
-1%
-1%

(1,000)
68,577
(415)
68,162

-4%
13%
-100%
12%

Total Aeronautical Expenses
GASB 87_96_103 Expenses
Total Aeronautical Expenses GASB Comparable Basis

367,736
250
367,986

358,644
315
358,959

390,421
163
390,584

391,206
163
391,369

392,023
163
392,186

1,603
1,603

0%
0%
0%

(31,777)
152
(31,625)

-9%
48%
-9%

Aeronautical NOI GASB Comparable Basis

152,956

186,348

223,300

226,417

226,378

(3,078)

-1%

36,952

20%

Debt Service
Net Cash Flow

(157,518)
(4,562)

(176,250)
10,098

(201,468)
21,833

(202,992)
23,426

(202,992)
23,387

1,524
(1,554)

-1%
-7%

(25,217)
11,735

14%
116%

Aeronautical NOI

Aeronautical - 2026 Forecast vs. 2026 Revised Budget
Aeronautical expenses are forecasted to be $1.6M lower compared to budget. Aeronautical revenues are
forecasted to be $4.7M lower compared to budget.

12

II.

AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

Airline Rate Base Cost Drivers

2026 Forecast vs. 2026 Revised Budget
Total Aeronautical Revenue is forecasted to be $4.7M below the revised budget, driven primarily by higher
operating costs, offset by lower net debt service. Operating and Maintenance (O&M) expenses are forecasted
to be $1.2M above budget, mainly due to $6M of capital-to-expense transfers impacting the terminal area,
partially offset by savings across other areas. Net Debt Service is forecasted to be $5.8M below the revised
budget due to the postponed in-use date of the Concourse A Expansion and changes in capitalized interest
across several airfield projects, while amortization increased slightly due to a higher aeronautical allocation for
Terminal B following Q2 space updates.
Non-Aero Business Unit Summary - YTD Actuals
Non-Aeronautical NOI (Q2)

Figures ($ in 000's)

2024 YTD
(Q2)

2025 YTD
(Q2)

2026 YTD
(Q2)

2026 YTD
(Q2)

2026 YTD
(Q2)

Actual vs. Rvsd_Bud
Variance

Actual

Actual

Actual

Budget

Revsd_Bud

Non-Aeronautical Revenues
Public Parking
Rental Cars
Ground Transportation
Airport Dining & Retail
Other

58,986
22,748
11,853
31,931
29,018

58,697
25,702
11,784
32,319
37,686

59,817
18,264
11,392
34,955
41,310

57,030
25,604
12,179
36,378
40,814

57,030
17,226
12,179
36,637
41,062

Total Non-Aeronautical Revenues
GASB 87_96_103 Revenues
Total Non-Aeronautical Revenues GASB Comparable Basis

154,536
(2,855)
151,680

166,188
(3,286)
162,902

165,737
6,889
172,626

172,005
(3,183)
168,822

164,133
4,936
169,069

$
2,787
1,038
(786)
(1,682)
248
1,604
1,953
3,557

Total Non-Aeronautical Expenses
GASB 87_96_103 Expenses
Total Non-Aeronautical Expenses GASB Comparable Basis
Non-Aeronautical NOI GASB Comparable Basis

71,861
24
71,886
79,795

83,534
861
84,395
78,507

96,003
4,045
100,047
72,579

95,480
3,971
99,451
69,371

95,929
3,971
99,900
69,170

74
74
148
3,409

%

Change from 2025
Incr(Decr)

1%
40%
2%

$
1,120
(7,438)
(391)
2,636
3,624
(451)
10,175
9,724

0%
-310%
6%

0%
2%
0%
5%

12,469
3,184
15,653
(5,929)

15%
370%
19%
-8%

5%
6%
-6%
-5%
1%

%
2%
-29%
-3%
8%
10%

Non-Aeronautical Revenue - 2026 YTD Actuals vs. 2026 YTD Budget
YTD Q2 2026 Non-Aeronautical Revenues are higher than budget by $1.6M, or 1%. The performance compared
to budget is highlighted by the 2025 SeaTac Office Center (STOC) acquisition at the end of Feb 2025, which
annualized in Q1 2026. In addition, Public Parking, Rental Cars, and Flight Kitchens all performed well against
13

II.

AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

budget but were partially offset by Airport Dining and Retail (lower due to monthly seasonality, which will
normalize by the end of the year).
Non-Aeronautical Revenue - 2026 YTD Actuals vs. 2025 YTD Actuals
YTD Q2 2026 Non-Aeronautical Revenues are lower than 2025 by ($0.5M), or (0%). The decline is due to the
accounting change for GASB 103, which has reclassified CFC operating revenue (under Rental Cars) to nonoperating income. Excluding $8.2M in 2025 CFC revenue, YTD Q2 2026 Non-Aeronautical Revenues are up
$7.6M, or 5%. The growth is highlighted by the 2025 SeaTac Office Center (STOC) acquisition at the end of Feb
2025, which was annualized in Q1 2026. In addition, Public Parking, Rental Cars, Airport Dining and Retail, and
Flight Kitchens all showed solid growth YTD vs. 2025.
YTD Q2 2026 Non-Aero Expenses are higher due to allocations and annualization of STOC operating expenses
(offset by revenue).
Non-Aero Business Unit Summary - YE Forecast

Non-Aeronautical NOI

Figures in ($ in 000's)

2024

2025

2026

2026

2026

Fcst vs. Rvsd_Bud
Variance

Change from 2025
Incr(Decr)

Actual

Actual

Forecast

Budget

Revsd_Bud

$

%

$

%

Non-Aeronautical Revenues
Transportation Mgmt Association
Public Parking
Rental Cars
Ground Transportation

116,535
64,434
23,946

116,870
67,479
24,376

717
118,419
45,624
23,758

717
114,531
67,862
24,896

717
114,531
43,555
24,896

3,889
2,069
(1,138)

0%
3%
5%
-5%

717
1,549
(21,854)
(618)

1%
-32%
-3%

Employee Parking1
Landside Total

10,462
215,376

12,532
221,256

14,092
202,610

14,138
222,144

14,138
197,837

(46)
4,773

0%
2%

1,560
(18,646)

12%
-8%

Airport Dining & Retail1
Tenant Marketing
AOB Conference Center
Commercial Management Total

72,234
902
252
73,388

73,777
1
205
73,983

77,948
1,919
200
80,067

77,078
503
228
77,809

77,596
503
228
78,327

352
1,416
(28)
1,740

0%
281%
-12%
2%

4,170
6%
1,918 279778%
(5)
-3%
6,084
8%

Non-Aero Commercial Properties
International Place (STOC)
Clubs and Lounges
Non-AirlineTerminal Leased Spc
AV Business & Properties Total
Utilities
Other
Total Non-Aeronautical Revenues
GASB 87_96_103 Revenues
Total Non-Aeronautical Revenues GASB Comparable Basis

17,639
16,709
7,559
41,907
9,578
110
340,360
(12,757)
327,603

18,625
10,174
19,528
8,584
56,911
10,837
228
363,215
(10,962)
352,253

22,786
12,214
19,292
9,481
63,773
10,551
876
357,877
9,872
367,749

20,475
11,712
16,153
8,157
56,497
10,551
381
367,381
(13,917)
353,464

20,475
11,712
16,153
8,157
56,497
10,551
876
344,087
9,872
353,959

2,311
503
3,139
1,324
7,276
0
(0)
13,790
13,790

11%
4%
19%
16%
13%
0%
0%
4%
0%
4%

4,161
2,041
(236)
897
6,862
(286)
648
(5,338)
20,834
15,496

22%
20%
-1%
10%
12%
-3%
284%
-1%
-190%
4%

Total Non-Aeronautical Expenses
GASB 87_96_103 Expenses
Total Non-Aeronautical Expenses GASB Comparable Basis

162,092
79
162,170

178,384
5,084
183,468

200,390
7,938
208,327

196,929
7,938
204,867

197,834
7,938
205,772

(2,555)
(2,555)

-1%
0%
-1%

22,006
2,854
24,859

12%
56%
14%

Non-Aeronautical NOI

178,268

184,831

157,488

170,452

146,253

11,235

8%

(27,344)

-15%

Less: CFC Surplus2
Adjusted Non-Aeronautical NOI

(10,174)
168,094

(9,385)
175,446

157,488

(11,702)
158,750

146,253

11,235

8%

9,385
(17,958)

-100%
-10%

Non-Aeronautical NOI GASB Comparable Basis

165,433

168,785

159,422

148,597

148,187

11,235

8%

(9,364)

-6%

Debt Service
Net Cash Flow

(43,887)
124,206

(33,957)
141,489

(57,802)
99,686

(57,369)
101,381

(57,369)
88,884

(433)
10,801

1%
12%

(23,845)
(41,803)

70%
-30%

1

Includes lease payments from tenants as non-operating interest income instead of operating revenues

2

The implementation of GASB 103 has reclassified CFC revenue from operating to non-operating, which is reflected in 2026 Forecast and Revised Budget

Note: Lease payments from tenants treated as non-operating interest income and lease interest expenses

14

II.

AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

Non-Aeronautical Revenue - 2026 Forecast vs. 2026 Budget
• Non-aero revenue forecast is $13.8M above revised budget, reflecting higher revenues across Public
Parking, Rental Cars, and Flight Kitchens. The South Concourse Lounge construction delay also adds
approximately three months of incremental operations revenues.
• Non-Aero Expenses are forecasted to be higher than budget by ($2.6M), with NOI higher than budget by
$11.2M or 8%. Expenses are driven by higher allocations and additional operating expenses from the South
Concourse Lounge remaining open for an additional three months.

15

II.

AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

D. CAPITAL RESULTS
2026
YTD Actual

2026
Budget

43,778

2026
Year-End
Forecast
72,633

96,994

41,918

82,829

83,689

2026
POF

Bud vs. Fcst
$

%

96,470

24,360

25.1%

69,256

137,762

(13,573) -19.6%

115,689

108,970

119,813

(6,719)

22,147

41,579

35,377

39,040

(6,202) -17.5%

13,770

34,012

38,287

71,507

4,275

11.2%

52,253

106,891

110,207

120,752

3,316

3.0%

3,308

9,092

11,499

12,412

2,407

20.9%

196

2,796

5,081

6,472

2,285

45.0%

5,230

6,615

4,558

915

203

644

2,382

2,867

1,737

72.9%

All Other

99,417

235,835

252,696

394,832

16,861

6.7%

Subtotal
CIP Cashflow Mgmt Reserve

365,909
-

708,616
(50,000)

735,307
(76,353)

1,002,842
(166,955)

26,691
(26,353)

3.6%
34.5%

Total Spending

365,909

658,616

658,954

835,887

338

0.1%

$ in 000's
(1)
SEA Gateway
S Concourse Evolution

(2)

C Concourse Expansion

(3)

Post IAF Airline Realignment
2026-2030 AFLD PVMNTS

(4)

(5)

Checked Bag Recap/Optimization
Upgrades STS Train Control

(7)

Perimeter Intrusion Detect Sys
Airfield Snow Equipment

(9)

Biffy Facility Improvement

(10)

(8)

(6)

1.
2.

-6.2%

(2,057) -45.1%

Actuals lower due to increase in projected savings.
Design services effort heavier/front loaded than forecasted as the scheduled accelerated. And, $4M airfield 2026
contract work transferred to SCE.
3. The 2026 Q2 actual costs brought the project costs aligned with planned cost. Nearly $6M in unanticipated change
orders for NSS spent in 2026 utilizing transferred program contingency caused overspending for the year.
4. Increased construction spending to support turnovers ahead of FIFA and unforeseen conditions and abatement
work increased cost. United Airlines lounge project updated estimates show higher costs. This increase is projecting
more spending in 2026 than anticipated.
5. $4M of SCE part of bid originally captured in this project was transferred to SCE.
6. Anticipate spending 98% of 2026 Baseline Forecast. Returning some savings from Phase 2.
7. Testing was delayed, including delays in static and dynamic testing, resulting in lower than projected invoiced
amounts than planned.
8. Schedule delay because of delayed testing due to faulty equipment.
9. During budget, estimated 80% of the invoice to be spent in 2026 until the vendor completed the work to meet the
requirements. Vendor is now on track to complete it in 2026.
10. Delays to the design periods - Construction costs pushed out along with final design costs.

16

III.

MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

III.

MARITIME DIVISION

A. FINANCIAL SUMMARY (Excludes Pension Adjustments)
2023

2024

2025

$ in 000's
Total Revenues

Actual
99,738

Actual
106,809

Total Operating Expenses

93,596

Net Operating Income

2026

Actual
116,917

2026
Revised
Forecast Budget
126,589 125,344

Actual vs. Revised
Budget Variance
$
%
1,245
-1%

Change from 2025

101,991

111,643

120,474

124,728

4,254

3%

8,831

9%

6,142

4,818

5,274

6,115

616

5,499

892%

842

14%

NOI Incl. GASB/Pension

(12,519)

(15,905)

(31,534)

(51,053)

(57,272)

6,219

11%

(19,520)

156%

Capital Expenditures

26,246

84,842

93,859

98,488

93,384

5,104

5%

4,629

18%

$
9,672

%

8%

2026 Forecast vs. 2026 Revised Budget
• Operating Revenues forecasted at $1.2M above $125.3M from increased Cruise and Grain forecast.
• Operating Expenses forecasted $4.3M lower than revised budget from deferred T91 demolition costs.
• Net Operating Income forecasted $5.5M above revised budget.
• Capital Spending forecasted 105% of $93.4M revised budget.
2026 Forecast vs. 2025 Actuals
• Operating Revenues forecasted $9.6M higher than in 2025 from higher Cruise rates and volumes.
• Operating Expenses forecasted $8.8M higher than 2025 actual from higher payroll and increased ERL
projects.
• Net Operating Income forecasted $0.8M higher than 2025 actual.
Net Operating Income before Depreciation by Business
2025 YTD 2026 YTD 2026 YTD

Actual vs. Revised

Change from 2025

Budget Variance
$ in 000's

Actual

Actual

Budget

$

%

$

%

Ship Canal Fishing & Operations

(1,948)

(5,041)

(3,440)

(1,601)

-47%

(3,093)

-159%

Elliott Bay Fishing & Commercial Operations

(1,310)

(597)

(1,219)

623

51%

713

54%

Recreational Boating

710

(52)

(291)

238

82%

(762)

-107%

Cruise

9,144

10,686

9,428

1,258

13%

1,542

17%

Grain

2,672

2,535

1,981

554

28%

(137)

-5%

Maritime Portfolio

(4,697)

(4,014)

(6,426)

2,412

38%

683

15%

All Other

(664)

(949)

212

(1,161)

-547%

(285)

-43%

Total Maritime

3,907

2,567

246

2,322

946%

(1,339)

-34%

17

III.

MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

B. KEY PERFORMANCE METRICS
Cruise Passengers in 000's

Grain Volumes in 000's

18

III.

MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

C. OPERATING RESULTS
2023 YTD 2024 YTD 2025 YTD 2026 YTD 2026 YTD
Revised
$ in 000's
Actual
Actual
Actual
Actual
Budget
Ship Canal Fishing & Operations
2,651
2,650
3,027
2,443
2,513
Elliott Bay Fishing & Commercial Operations
2,829
2,872
3,132
3,397
3,167
Recreational Boating
7,751
8,321
9,130
9,547
9,497
Cruise
15,437
19,027
19,994
23,236
23,787
Grain
1,964
3,079
3,643
3,342
2,905
Conference & Event Centers
3,377
3,687
3,867
4,619
4,069
Leasing Portfolio
10,180
11,272
11,122
11,897
11,876
Other
19
6
(10)
(6)
0
Total Revenue
44,209
50,915
53,905
58,474
57,814

Actual vs. Budget
Variance
$
%
(69)
-3%
230
7%
51
1%
(551)
-2%
437
15%
549
13%
20
0%
(6)
660
1%

Change from 2025
$

(584)
265
418
3,242
(301)
752
775
4
4,569

%
-19%
8%
5%
16%
-8%
19%
7%
37%
8%

Expenses
Total Direct
Total Support Services
Total Central Services / Other
Total Expense
NOI Before Depreciation
Depreciation
NOI After Depreciation

16,176
13,082
12,092

18,074
14,006
13,588

19,987
15,454
14,557

22,298
18,009
15,600

21,222
20,830
15,517

(1,076)
2,821
(83)

-5%
14%
-1%

2,311
2,555
1,043

12%
17%
7%

41,350
2,859
11,183
(8,324)

45,668
5,247
11,132
(5,885)

49,998
3,907
11,897
(7,990)

55,907
2,567
13,498
(10,931)

57,568
246
13,539
(13,294)

1,662
2,322
41
2,363

3%
946%
0%
18%

5,909
(1,339)
1,601
(2,941)

12%
-34%
13%
-37%

(7,973)
(52)
136

(7,469)
5,801
171

(7,414)
7,950
77

55
2,149
(93)

1%
27%
-121%

504
5,854
35

6%
11167%
25%

(16,047)

(24,372)

(28,735)

(4,363)

-15%

(8,325)

-52%

GASB/Pension/ Legacy ERL Impacts
Total Revenue
Total Operating Expenses*
Total Depreciation
NOI After Depreciation with GASB

(8,324)

(5,885)

2026 YTD Actuals vs. 2026 YTD Revised Budget
• Operating Revenues were $660K higher than revised budget:
o Ship Canal $69K lower due to unexpected customer vacancy at Fishermen's Terminal.
o Elliott Bay Fishing $244K higher due to increased activity at T91, as well as P28 and P34 dolphins.
o Recreational Boating $73K higher than budget due to utility sales revenue timing at Shilshole Bay
Marina.
o Cruise $555K lower due to early season, lower occupancies. Occupancies will increase in Q3.
o Grain $437K higher due to soybean volumes rebounding.
o Leasing Portfolio $20K higher due to higher rates from subtenant to direct lease conversions.
o Conference and Event Centers are $549K higher due to returning customers/programs, higher shortterm booking rates, and upselling activity.
• Operating Expenses were $1.7M below revised budget:
o Direct Expenses were $1.1M higher than revised budget due to environmental remediation expenses.
o Support Services $2.8M below revised budget from timing of Maintenance and small works projects.
Projects to be completed Q2-Q4.
o Central Services/Other $83K above revised budget.
• Net Operating Income after Depreciation was $2.4M higher than revised budget.
2026 YTD Actuals vs. 2025 YTD Actuals
• Operating Revenues were $4.6M higher than 2025 due to returning customers to Conference & Event
Centers, returning demand for soybeans for Grain, and increased Elliott Bay Fishing & Commercial activity.
• Operating Expenses were $5.9M higher than 2025 from increased ERL, utilities, and derelict vessels as well
as higher central services costs.
• Net Operating Income after Depreciation was $2.9M lower than 2025 actual from higher depreciation and
one time ERL and Derelict Vessel expenses.
19

III.

MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

Forecast vs. Budget
Variance
$
%
0
0%
0
0%
0
0%
0
0%
0
0%
(1,855)
-16%
0
0%
0
(1,855)
-1%

Change from 2025

Actual
Forecast
5,562
4,503
6,963
6,148
18,058
20,000
48,853
63,821
6,442
5,136
8,654
9,430
22,432
23,123
(47)
0
116,917
132,160

2026
Revised
Budget
4,503
6,148
20,000
63,821
5,136
11,285
23,123
0
134,015

$
(1,059)
(815)
1,942
14,968
(1,306)
776
691
47
15,243

%
-19%
-12%
11%
31%
-20%
9%
3%
100%
13%

36,595
33,193
32,202

47,675
36,354
27,614

44,619
45,264
30,591

43,119
50,564
31,045

(1,500)
5,300
454

-3%
10%
1%

(3,056)
8,910
2,977

-6%
25%
11%

93,596
6,142
22,421
(16,279)

101,991
4,818
23,850
(19,032)

111,643
5,274
24,727
(19,453)

120,474
11,686
27,033
(15,346)

124,728
9,287
27,033
(17,745)

4,254
2,399
0
2,399

3%
26%
0%
14%

8,831
6,413
2,306
4,106

8%
122%
9%
21%

170
(2,561)

(90)
(3,850)

(18)
(3,145)

(15,889)
(4,092)
284

(14,828)
15,180
128

(14,828)
15,900
128

0
720
0

0%
5%
0%

1,061
19,272
(156)

7%
471%
-55%

(11,748)

(12,519)

(15,905)

(31,533)

(45,482)

(48,601)

(3,119)

-6%

(13,949)

44%

2022

2023

2024

2025

Actual
4,592
5,975
13,978
30,469
5,792
8,914
19,367
10
89,095

Actual
5,076
6,564
15,505
41,726
3,356
6,738
20,764
10
99,738

Actual
5,169
6,602
16,555
43,145
5,920
7,490
21,920
8
106,809

33,680
24,948
22,972

37,061
29,939
26,596

Total Expense
NOI Before Depreciation
Depreciation
NOI After Depreciation

81,600
7,495
21,974
(14,479)

GASB/Pension Credit Impacts
Total Revenue
Total Op Expenses, Pension Adj
Total Depreciation
NOI After Depreciation with GASB

$ in 000's
Ship Canal Fishing & Operations
Elliott Bay Fishing & Commercial Operations
Recreational Boating
Cruise
Grain
Conference & Event Centers
Leasing Portfolio
Other
Total Revenue

2026

Expenses
Total Direct
Total Support Services
Total Central Services / Other

2026 Forecast vs. 2026 Revised Budget
• Operating Revenues forecasted at $1.2M above $125.3M from increased Cruise and Grain forecast.
• Operating Expenses forecasted $4.3M lower than revised budget from deferred T91 demolition costs.
• Net Operating Income forecasted $5.5M above revised budget.
• Capital Spending forecasted 105% of $93.4M revised budget.
2026 Forecast vs. 2025 Actuals
• Operating Revenues forecasted $9.6M higher than in 2025 from higher Cruise rates and volumes.
• Operating Expenses forecasted $8.8M higher than 2025 actual from higher payroll and increased ERL
projects.
• Net Operating Income forecasted $0.8M higher than 2025 actual.

20

III.

MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

D. CAPITAL RESULTS
2026
Actual

2026 YE
Forecast

$ in 000's
T91 Berth 6 & 8 Redev
P66/P91 Shore Power Extension
T91 Uplands Dev Phase I
MIC Electrical Replacements

19,289
6,941
1,277
5,150

25,931
19,121
5,518
9,308

P66 Grand Staircase Replc
FT Maritime Innovation Center
Technology Project
T91 Shore Power System Purchas
T91 New Cruise Gangway
Fleet
All Other Projects

4,147
3,162
928
3,600
1,609
1,247
8,261

4,856
4,450
2,148
3,600
2,086
6,929
27,202

2026
2026 POF Budget vs Actual
Budget
$
%
13,654
(276)
-1%
26,207
17,100
9,540
2,021
12%
11,000
16,524
(5,482)
-50%
10,759
9,683
(1,451)
-13%
4,872
4,058
4,250
3,600
2,300
6,928
24,840

5,560
2,700
4,250
0
2,446
6,648
41,890

(16)
392
(2,102)
0
(214)
1
2,362

0%
10%
-49%
0%
-9%
0%
10%

Subtotal
55,611
111,149 115,914
CIP CashFlow Mgt
0
(12,661) (22,530)
Total Maritime
55,611
98,488
93,384
% of Capital Budget w/out CF Mgt
48%
96%
% of Capital Budget including CF Mgt
60%
105%
Note: POF (Plan of Finance) is the total estimated during the budget process.

112,895
(31,937)
80,958

(4,765)
9,869
5,104

-4%
-43.8%
5%

Comments on Key Projects with Significant Variances
• T91 Berth 6&8 - Decrease reflects drop of risk after settlement with contractor.
• Shore Power Ext - Overall increase of $58M. DU2902 and structural slab. Further refinement of means
and method.
• T91 Uplands - No change overall. Delayed billing and procurement pushed out to 2027.
• MIC Electrical- Substantial completion date pushed out, delayed billings.
• Technology- Video Camera pushing out contingencies.
• Elliott Bay Connections- Requests for reimbursement from EBC have been slower than anticipated.

21

IV.

ECONOMIC DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

IV.

ECONOMIC DEVELOPMENT DIVISION

FINANCIAL SUMMARY
2023

2024

2025

Actual
24

Actual
(8)

Actual
21

Total Operating Expenses

3,351

2,951

2,663

Net Operating Income

(3,328)

(2,959)

(2,643)

(3,374)

NOI Incl. GASB/Pension

432

168

(1,873)

(3,374)

$ in 000's
Total Revenues

Forecast vs. Revised
Budget Variance
$
%
0
0%

2026

2026
Revised
Forecast Budget
16
16
3,390

3,390

Change from 2025
$

(5)

%
-25%

727

22%

0

0%

(3,374)

0

0%

(732)

-22%

(3,374)

0

0%

(1,501)

-347%

OPERATING RESULTS

$ in 000's
Total Revenue

2023 YTD 2024 YTD 2025 YTD 2026 YTD 2026 YTD
Revised
Actual
Actual
Actual
Actual
Budget
8
9
11
6
8

Actual vs. Budget
Budget Variance
$
%
(2)
1%

Change from 2025
$
1,440

%
9%

414%

Expenses
Division Admin
Re Dev & Planning
Small Business
Workforce Development
Tourism
Total EDD

184
0
0
0
524
707

66
0
0
0
558
624

36
(0)
0
34
757
827

185
25
0
2
733
945

77
(0)
25
0
902
1,004

(108)
(25)
25
(2)
169
59

-139%

19%
6%

149
25
0
(32)
(24)
118

Maritime / Maintenance
Central Services / IT
Total Support Services

10
14
24

11
14
25

22
14
37

13
31
44

13
37
50

(0)
6
6

0%
16%
12%

(9)
17
7

-42%
120%
20%

Total Expense
NOI Before Depreciation
Depreciation
NOI After Depreciation

731
(723)
6
(729)

648
(640)
5
(645)

864
(853)
7
(861)

989
(983)
14
(997)

1,054
(1,046)
11
(1,057)

65
63
(3)
59

6%
6%
-30%
6%

125
(130)
7
(137)

15%
-15%
91%
-16%

100%

2026 YTD Actuals vs. 2026 YTD Revised Budget
• Operating Revenues on budget from rental income at the Duwamish Hub.
• Operating Expenses were $65K below revised budget from timing of outside services. Economic
Development Grants and Tourism spending.

22

3%
-95%
-3%
14%

V.

CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

V. CENTRAL SERVICES DIVISION
FINANCIAL SUMMARY
2026 YTD

2026 YTD

Actual
735
735
735

Actual vs. Revsd_Bud
Variance
Budget
Revsd_Bud
$
%
72
72
663
918.7%
0.0%
72
72
663
918.7%
297
0.0%
369
72
663
918.7%

65,648
24,640
11,050
101,338
355
101,693

64,607
25,318
10,755
100,681
2,474
103,155

66,099
25,318
10,755
102,172
204
102,376

2024 YTD

2025 YTD

2026 YTD

$ in 000's
Operating Revenues
Pension Contra Revenue
Operating Revenues
GASB 87_96_103 Revenues
Total Operating Revenues GASB Comparable Basis

Actual
145
145
252
397

Actual
119
119
421
541

Core Central Support Services
Police
Engineering/PCS
Operating Expenses
GASB 87_96_103 Expenses
Total Operating Expenses GASB Comparable Basis

57,866
22,275
6,607
86,747
1,251
87,998

60,674
23,145
8,687
92,506
1,631
94,136

451
678
(294)
835
(151)
683

0.7%
2.7%
-2.7%
0.8%
-74.2%
0.7%

Change from 2025
Incr (Decr)
$
%
616
516.4%
0.0%
616
516.4%
(421)
-100.0%
195
36.0%
4,974
1,495
2,363
8,832
(1,276)
7,556

8.2%
6.5%
27.2%
9.5%
-78.2%
8.0%

2026 YTD Actuals vs. 2026 YTD Revised Budget
• Operating Revenues favorable by $663K, primarily due to a cybersecurity insurance adjustment.
• Operating Expenses favorable by $835K, mainly due to lower Outside Services, Equipment Expense, Travel
& Employee Expenses, and Other Expenses, partially offset by lower charges to Capital Projects, higher
Payroll, and Litigated Injuries & Damages.
2026 YTD Actuals vs. 2025 YTD Actuals
• Operating Revenues $616K higher than 2025 mainly due to a cybersecurity insurance adjustment.
• Operating Expenses $8.8M higher than 2025 mainly due to higher Payroll, Equipment Expense, Outside
Services, Insurance Expense, Litigated Injuries & Damages, and Other Expenses; partially offset by higher
charges to Capital Project.
A. BUSINESS EVENTS
• Launched on site contract monitoring in June, with the Urban League of Metropolitan Seattle receiving
the first visit. This new practice was developed in partnership with the Economic Opportunities
program for SKPCF.
• Hosted and sponsored annual events including the Duwamish Alive Community Cleanup at Haapoos
Park, the Multi Lingual Boat Tour of the Duwamish River, the Terminal 5 Bus Tour with NWSA, and the
Maritime Industry Breakfast and Awards Ceremony.
• Produced career awareness tours, programming, and presentations for Highline Schools District 7th
grade classes, Aeronautical Science Pathways, Chief Sealth High School, Rainier Beach High School,
Duwamish Valley youth, and the Aviation High School Environmental Challenge. Also held the Port
Pathways Hiring Fair with WFD, which drew more than 250 attendees.
• Executed two CFO Roadshow Breakfasts to share the Port's economic and financial outlook with
Eastside and South King County elected officials, city staff, and Chamber of Commerce executives.
• Supported SAMP SEPA outreach through presentations to StART, ECOSS, Front & Centered, World
Relief, and the Congolese Integration Network.
• Held the South King and Port Communities Partner Meeting for 18 newly contracted organizations
through the Environmental Improvements Program.
• Collaborated with staff from the National Caucus of Environmental Legislators to host 20 state
legislators from across the country for a briefing on the Port of Seattle, focusing on the Port's energy
and environmental programs and sustainable economic development initiatives.
• Organized FIFA related events with international dignitaries, including officials from Belgium, Australia,
Egypt, and Bosnia & Herzegovina. Supported a K pop group visit for a South Korean Consulate watch
party, hosted Team Belgium in Seattle, conducted a day of business engagements with Australian
representatives, and represented the Port at Bosnia & Herzegovina community events.
23

V.

CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

B. KEY PERFORMANCE METRICS
YTD
2024
Responsibly Invest in the Economic Growth of the Region and all its Communities

YTD
2025

YTD
2026

A. Job seekers placed in jobs at SEA Airport through the Employment Center

503

230

344

B. Number of SEA Airport tenants supported in finding employees

84

88

155

C. Employment Center training completions

267

220

126

D. K-12 Career Connected Learning: WFD engagement with teachers/faculty

10

11

12

E. Community members entering employment in construction, maritime and
environmental sustainability

48

32

27

F. Number of Job Openings Posted

111

20

54

G. Job applications received

5,937

11,583

15,397

H. Number of job interviews conducted

659

1,271

1,373

I. Number of new employees hired

157

181

187

J. Number of interns

109

108

106

K. Number of Veteran Fellows

1

5

0

L. Number of employees participating in Tuition Reimbursement

17

11

15

2,907

3,368

5,990

Century Agenda Strategic Objectives

Become a Model for Equity, Diversity and Inclusion
A. Employee participation in OEDI programming (Caucuses, Book Clubs, Town
Halls, etc.)
Be a Highly Effective Public Agency
A. Central Services costs as a % of Total Operating Expenses
B. Investment portfolio earnings versus the benchmark (the Bank of America
Merrill Lynch 1-3 Year US Treasury & Agency Index)

29.4% 28.1% 27.8%
3.82%/ 3.53%/ 3.40%/
4.37%

3.51%

4.16%

C. Comply with Public Disclosure Act and respond in a timely manner

381

827

863

D. Employee Development Class Attendees/Structured Learning

1,655

4,496

18,045

E. Total Recordable Incident Rate (previous Occupational Injury Rate)

4.09

3.92

4.29

F. Lost Work Day Rate (previously Days Away Severity Rate)

16.73

73.37

40.75

G. Customer Survey for Police Service Excellent or Above Average

TBD

TBD

TBD

24

V.

CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

C. OPERATING RESULTS
Financial Summary (Year-End Forecast)
2024

2025

2026

$ in 000's
Operating Revenues
GASB 87_96_103 Revenues
Total Operating Revenues GASB Comparable Basis

Actual
403
281
684

Actual
14
1,435
1,449

Forecast
934
934

Budget Revsd_Bud
259
259
594
0
853
259

Executive
Commission
Legal
External Relations
Equity Diversity and Inclusion
Human Resources
Labor Relations
Internal Audit
Accounting & Financial Reporting Services
Information & Communication Technology
Information Security
Finance & Budget
Business Intelligence
Risk Services
Office of Strategic Initiatives
Central Procurement Office
Contingency
Environment & Sustainability
Core Central Support Services

6,025
3,042
10,312
14,379
1,922
16,099
1,541
1,935
10,003
30,410
2,613
3,075
1,888
7,395
1,125
7,079
21,534
1,479
141,854

2,771
3,137
8,395
14,365
1,975
16,506
1,598
2,066
11,173
31,476
3,633
3,076
2,235
7,144
1,353
7,588
(22,019)
1,968
98,441

3,502
5,334
8,457
16,254
2,488
17,960
1,932
2,415
12,789
33,507
4,506
3,541
2,559
8,206
1,684
9,588
(2,340)
2,373
134,755

3,407
3,671
6,863
15,858
2,540
19,160
1,923
2,448
12,807
34,080
4,612
3,371
2,633
8,642
1,731
9,756
(6,184)
2,306
129,624

Police
Total Before Cap Dev & Environment
Capital Development
Engineering
Port Construction Services
Sub-Total
Industrial Development Corporation
Capital to Expense
O&M Expenses
GASB 87_96_103 Expenses
Total Operating Expenses GASB Comparable Basis

•
•

2026

2026

3,407
5,516
7,328
15,858
2,540
19,160
1,923
2,448
12,807
34,080
4,612
3,527
2,633
8,642
1,731
9,756
(5,666)
2,306
132,607

Fcst vs. Revsd_Bud
Variance
$
%
675
260.9%
0.0%
675
260.9%
(95)
182
(1,129)
(397)
52
1,200
(9)
33
19
573
107
(14)
74
436
47
168
(3,326)
(67)
(2,148)

-2.8%
3.3%
-15.4%
-2.5%
2.1%
6.3%
-0.5%
1.3%
0.1%
1.7%
2.3%
-0.4%
2.8%
5.0%
2.7%
1.7%
58.7%
-2.9%
-1.6%

Change from 2025
Incr (Decr)
$
%
920
6809.7%
(1,435)
-100.0%
(515)
-35.6%
731
2,197
62
1,889
513
1,453
334
349
1,616
2,031
872
465
324
1,062
332
2,000
19,679
405
36,314

26.4%
70.0%
0.7%
13.1%
26.0%
8.8%
20.9%
16.9%
14.5%
6.5%
24.0%
15.1%
14.5%
14.9%
24.5%
26.4%
-89.4%
20.6%
36.9%

43,591

46,327

48,296

48,213

48,213

(83)

-0.2%

1,970

4.3%

185,445

144,768

183,051

177,837

180,821

(2,231)

-1.2%

38,283

26.4%

8,581
7,063
15,644

9,407
8,849
18,256

13,789
8,451
22,240

13,764
8,123
21,887

13,764
8,123
21,887

(25)
(328)
(352)

-0.2%
-4.0%
-1.6%

4,381
(398)
3,984

46.6%
-4.5%
21.8%

499
201,593
3,227
204,820

1
163,025
1,131
164,156

205,291
443
205,734

199,724
4,983
204,707

202,708
443
203,151

(2,583)
(2,583)

0.0%
0.0%
-1.3%
0.0%
-1.3%

(1)
42,266
(688)
41,578

-100.0%
0.0%
25.9%
-60.9%
25.3%

Total Operating Expenses are projected to be $2.6M or 1.3% over revised budget and $41.6M or 25.3% over 2025.
Excluding the $13.2M DRS pension credit and $21.8M in legal settlement credit in 2025, total operating expenses are projected to
be $6.6M or 3.3% increase from 2025.

25

V.

CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

2026 Forecast vs. 2026 Revised Budget
Operating Expenses for 2026 are forecasted to be $1.0M over revised budget due primarily to:
• Executive - unfavorable variance of ($95K) primarily due to higher Travel & Other Employee Expenses
($90K), Promotional Expenses ($58K), and Payroll ($33K); partially offset by lower Outside Services $89K.
• Commission - favorable variance of $182K primarily due to lower Payroll $157K and Travel & Other
Employee Expenses $25K; partially offset by higher General Expenses ($22K).
• Legal - unfavorable variance of ($1.1M) primarily due to higher Outside Legal Services ($1.2M); partially
offset by lower Payroll $92K.
• External Relations - unfavorable variance of ($397K) primarily due to higher Outside Services ($328K)
and Payroll ($246K); partially offset by lower Promotional Expenses $76K, General Expenses $64K, and
Travel & Other Employee Expenses $34K.
• Equity, Diversity, and Inclusion - favorable variance of $52K primarily due to lower Payroll $61K and
Travel & Other Employee Expenses $17K; partially offset by higher Outside Services ($31K).
• Human Resources - favorable variance of $1.2M primarily due to lower Payroll $793K, Outside Services
$260K and Travel & Other Employee Expenses $104K.
• Labor Relations - unfavorable variance of ($9K) primarily due to higher Payroll ($39K); partially offset
by lower Travel & Other Employee Expenses $26K.
• Internal Audit - favorable variance of $33K primarily due to lower Payroll $33K.
• Accounting and Financial Reporting Services - favorable variance of $19K primarily due to lower
Outside Services $65K, Travel & Other Employee Expenses $58K, and higher charges to Capital Projects
$30K; partially offset by higher Payroll ($136K).
• Information & Communication Technology - favorable $573K due to by lower Outside Services
$881K, Equipment Expense $220K, and Payroll $92K; partially offset by lower charges to Capital Projects
($649K).
• Information Security - favorable variance of $107K primarily due to lower Payroll $70K and Outside
Services $29K; partially offset by higher General Expenses ($7K).
• Corporate Finance & Budget - unfavorable variance of ($14K) primarily due to higher Payroll ($77K):
partially offset by lower General Expenses $39K and Travel & Other Employee Expenses $51K.
• Business Intelligence - favorable variance of $74K primarily due to lower Outside Services 63K and
Travel & Other Employee Expenses $15K; partially offset by higher Equipment Expense ($7K).
• Risk Services - favorable variance of $436K primarily due to lower General Expenses $513K; partially
offset by higher Outside Services ($73K).
• Office of Strategic Initiative - favorable variance of $47K primarily due to lower Payroll $47K and
Travel & Other Employee Expenses $44K; partially offset by higher Outside Services ($61K).
• Central Procurement Office - favorable variance of $168K primarily due to lower Payroll of $658K;
partially offset by lower charges to Capital Projects ($467K) and higher General Expenses ($28K).
• Environment & Sustainability Admin - unfavorable variance of ($67K) primarily due to higher Payroll
($67K).
• Police - unfavorable variance of ($83K) primarily due to higher Supplies & Stock ($196K) and Outside
Services ($87K); partially offset by lower Travel & Other Employee Expenses $148K and Worker's
Compensation Expense $89K.
• Engineering - unfavorable variance of ($25K) primarily due to lower charges to Capital project ($2.9M)
and higher General Expenses ($111K); partially offset by lower Payroll $1.0M, Equipment Expense $83K
and Outside Services $1.8M.
• Port Construction Services - unfavorable variance of ($328K) primarily due to higher General
Expenses ($1.1M), Payroll ($48K), Outside Services ($23K), and Equipment Expense ($20K); partially
offset by higher charges to Capital project $602K, lower Worker's Compensation Expense $180K, and
Travel & Other Employee Expenses $39K.
• Contingency - unfavorable variance of ($3.6M) due to vacancy factor.
26

V.

CENTRAL SERVICES DIVISION FINANCIAL & PERFORMANCE REPORT 06/30/26

2026 Forecast vs. 2025 Actuals
• Operating Expenses for 2026 are forecasted to be $41.6M higher than 2025 actuals, mainly due to:
o Core Central Support Services - $36.3M higher than 2025 actuals primarily due to an actual credit
adjustment in legal settlement for FY25 that is reflected a higher increase for 2026.
o Police - $2.0M higher than 2025 actuals due to increase in salary and benefits for represented groups
based on new contracts, new positions, and vacant positions in 2025.
o Capital Development - $4.0M higher than 2025 primarily due to higher payroll and addition of new
positions as well as contractual increases to support the capital program.
D. CAPITAL RESULTS
2026
$ in 000's
Corporate Fleet Replacement
Engineering Fleet Replacement
Police Small Cap and Axon Contract
Police IT System Upgrades
Services Tech - Small Cap
Infrastructure - Small Cap
PeopleSoft Financial System Upgrade
Physical Access Control System Refresh
Radio Microwave Redund. Loop
Private Cellular Network (LTE)
Maximo Software System Upgrade
Other (note 1)
Subtotal
CIP Cashflow Adjustment
TOTAL

YTD Actual
1,344
247
178
185
458
417
453
49
5
0
195
581
4,112
4,112

2026
Year-End
Forecast
3,205
1,316
2,360
835
854
2,060
1,153
319
1,350
0
645
2,910
17,007
(4,900)
12,107

2026

2026
Plan of
Budget
Finance
4,503
1,144
1,331
560
2,371
2,211
1,687
827
1,500
1,388
1,500
1,500
1,530
1,474
1,473
979
1,350
953
1,250
2,000
1,200
600
3,945
6,956
23,640
20,592
(6,800)
(6,400)
16,840
14,192

Note:
(1) "Other" includes remaining ICT projects and small capital projects/acquisitions.

27

Budget Variance
$

%

1,298
15
11
852
646
(560)
377
1,154
0
1,250
555
1,035
6,633
(1,900)
4,733

28.8%
1.1%
0.5%
50.5%
43.1%
-37.3%
24.6%
78.3%
0.0%
100.0%
46.3%
26.2%
28.1%
27.9%
28.1%