Item No.

___11a_supp ____

Date of Meeting: October 27, 2026_

Draft Plan of Finance 2027-2031
and Tax Levy Briefing
October 27, 2026

Overview
• Tax Levy
• Draft Plan of Finance
• Appendix

2

2027 Budget Process

2026 Budget
Development
(June-August)

Budget Briefings
(SeptemberOctober)

Plan of Finance
and Tax Levy
Briefing

Introduction &
Public Hearing for
2027 Budget

(October 27)

(November 17)

Adoption of 2027
Budget
(November 23)

Operating and Capital Budget Reviews roll-up into Plan of Finance and Port-wide Budget
3

Tax Levy Background and Update
2027 Preliminary Budget
October 27, 2026

Managing the Levy Using a Balanced Approach
GOAL
Manage the levy to provide financial
financial resilience and to support
support the region, today and for
for the long term

RECOMMENDATION

2027 ACTIONS

Move from 75/75 to 80/70
• Levy at 80% of the maximum
maximum
• Cap G.O. debt service at 70% of
70% of the annual levy

Set the 2027 levy at $97.59M

5

Context of the Levy Discussion
2026 Levy Discussion
•

In the 2026 Tax Levy Discussion,
the Commission charged
Corporate Finance with
examining multiple levy
scenarios.

March Retreat
•

Those scenarios were previewed
at the March retreat, as well as
a new approach for increasing
capacity without increasing
debt.

Proposal
•

The new approach previewed
in March is today's baseline
staff proposal.

6

Levy Background: A Tool Managed with Discipline
1911

1961

King County voters State expands the
create the Port as a Port's taxing
public port district authority

2010

2015

2023

2027

Transportation &
Infrastructure Fund
created for regional
commitments

Commission sets
levy use criteria for
for capital (updated
(updated 2018)

Environmental
Legacy Fund
created; $62M
deposited to date

Proposed: 80/70 to
fund resilience and
revenue

Throughout, the levy has funded projects that promote resiliency and community benefit: environmental cleanup,
cleanup, community programs, regional transportation (including the SR-99 tunnel) and public waterfront assets. The
waterfront assets. The Commission has chosen to keep it well below the legal maximum.

7

2026
2027 Est.

2025

2024

2023

2022

2021

2020

2019

2018

2017

$50

2016

2015

2014

2013

$75

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

$100

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

Levy History

$ Millions

$125

Maximum Allowable Levy
Actual Levy
Levy Tied to Inflation
(beginning 1990)

$25

$0

8

A small share of the property tax bill

1.1%

$87

$90.2M

of the $8.5B in King County property
property taxes went to the Port in
in 2026

Port share of a median homeowner's
homeowner's $8,204 total property
property tax bill (2026)

2026 levy: 75% of the $120.2M
maximum; up 2.0% from $88.4M

Because assessed value grew faster than the levy in 2026 (~3.5% vs. 2.0%), the millage rate edged down, from $0.1012 to
$0.0980 per $1,000.

9

Two levers set how the levy is used
Lever 1 · How much we levy
A percentage of the statutory maximum. The gap below
below the maximum is "dry powder" for future needs.
needs.

Lever 2 · How much we leverage
The share of the levy committed to G.O. bond debt
debt service. The rest is cash for capital and programs.
programs.

THE RULES
• Commission sets the levy each year, up to the legal
maximum
• The maximum grows about 2% a year (1% limit plus new
construction); 2027 max ≈ $122.0M
• Usable for any Port purpose except revenue bond debt
service
• G.O. bond debt service is the first claim on the levy
• Commission can further restrict uses by policy

10

The levy punches above its weight
Direct value to the region

Indirect value: our credit

• Legacy environmental cleanup: Duwamish, T-108, T-25, T-115
• Community programs, about $13M a year
• Regional transportation, including SR-99
• Public waterfront capital investments

• Levy net of G.O. debt service boosts revenue bond coverage
• Diversifies revenue beyond airport and maritime business
• Rating agencies cite "prudent management of the tax levy,
including maintaining a cushion"

Up to $25M

Added debt service from a credit downgrade (5-25 bp) on the new airport debt planned from 2027-2031

11

Our needs are outpacing the current approach
Infrastructure upgrades & modernization

Aging and at-risk assets

Mission opportunities

• T-91 Electrical System Modernization
• Updating Infrastructure for Future fuels
• Waterfront Clean Energy Strategy Implementation
• Enhancing Infrastructure Resiliency

• Seismic upgrades
• Pier 69 renewal
• Mooring dolphins
• FT North West Dock
• Salmon Bay Investments
• Bulkhead replacements

• Habitat acquisition
• Real Estate Acquisition
• Financial sustainability projects
• Needs beyond 2031, when capital
plans assume lower spending

12

From 75/75 to 80/70: more cash, not more debt
2027, at the ~ $122.0M m axim um

C urrent 75/75

Pro p o sed 80/70

C hang e

75%

80%

+ 5 p ts

Levy am o unt

$91.5M

$97.6M

+ $6.1M

H ead ro o m b elo w m axim um

$30.5M

$24.4M

G .O . d eb t service cap (75% vs. 70% )

$68.6M

$68.3M

−$6.1M

Levy cash after m axim um G .O . d eb t service

$22.9M

$29.3M

Levy as % of m axim um

−$0.3M
+ $6.4M

Debt capacity stays flat. The proportion of our capital funded with cash increases, mitigating growth in interest costs.

13

The Step Today: 80/70
O p tio n

Taxpayer lens

Investo r lens

A d d ed capacity

C urrent 75/75

M o d est annual increases; fund s key
initiatives

Flexib ility fro m m anag ing levy and
leverag e

Baseline

Pro p o sed 80/70

M o d erate increase; value d ep end s
o n use

Flexib ility m aintained thro ug h levy
and leverag e lim its

$67M , 2027-2035

Because the levy base grows each year, the added capacity compounds, while the cushion below the maximum stays in place.

The Long-Term Commitment
Hold the Levy at this level and shape the capital plan to accommodate.

14

What it means for a typical homeowner
2026 PORT TAX

2027 Proposal (ESTIMATE)

$87

≈$95

median home, levy $90.2M

median home, levy $97.59M

+$8 a year
About 67¢ a month. The levy rises
rises 8.2% in 2027, then returns
returns to ~2% annual growth
growth with the maximum

Estimate assumes the median home's assessed value moves with the countywide total. Based on the preliminary assessed value the estimated median
home price for 2027 is $850,000.

15

The credit strengths investors value stay intact
Governance

Cushion kept

Less leverage

Commission policy and
use criteria still direct
every levy dollar

20% of capacity, about
$24M a year, stays
untapped

G.O. debt service cap
More levy net of G.O. debt
tightens from 75% to 70% service supports revenue
of the levy
bond coverage

Coverage up
up

16

Sources of Tax Levy & Related Funding: 2027-2031
Total Sources - $904M


2027 levy set at 80% of maximum allowable



Future tax levy collections based on ~2% annual
levy growth



$78M of existing GO Bond proceeds from issuances
in 2022 and 2024



Forecasts assume $250M of additional GO Bonds
issue over the next 5 years to support capital
investments and environmental costs
Note: Excludes TIF funds

17

Uses of Tax Levy & Related Funding: 2027-2031
Total Uses - $904M


Existing GO Bonds DS includes both Seaport
capital investments and SR-99 tunnel
contribution



Environmental costs are projected to continue
well past 2031, but are fully funded with levy
resources including G.O. bonds



Assumes continuation of levy funded
Community Programs at ~$13M annually

Note: Excludes TIF spending

Every Additional Use of the Tax Levy for Operations Has an Opportunity Cost, Reducing Maritime Capital

18

Managing the Levy Using a Balanced Approach
GOAL

RECOMMENDATION

2027 ACTIONS

Manage the levy to provide
financial resilience and support the
support the region, today and for
for the long term

Move from 75/75 to 80/70
• Levy at 80% of the maximum
maximum
• Cap G.O. debt service at 70% of
70% of the annual levy

Set the 2027 levy at $97.59M

20

Draft Plan of Finance 2027-2031
2027 Preliminary Budget
October 27, 2026

The Draft Plan of Finance
The Draft Plan of Finance is a funding plan for the Port's five-year Capital Improvement
Program (CIP)
• A tool for the Commission to inform the budget process and long-term capital
investment decisions
• Flexible tool that is updated as circumstances change
• Plan is developed based on a sustainable financial model
• An important tool for investors
• Gauge the future financial health of the Port
• Provides insight into Port's approach to financial stewardship

22

Funding Resiliency
• Establish financial guardrails to manage uncertainty
• Provides a cushion for income variability

Airport
Seaport

Minimum Revenue Bond
Debt Service Coverage
1.40x (1)
1.80x

Minimum Fund Balance
18 months
12 months

(1) Calculation for rates and charges may differ from the calculation for bond compliance

23

Seaport Capital Spending (2027-2031)
• Maritime $682M
- 44% in design or construction
- $50M (7% of CIP) reserves

• NWSA $353M includes
- Port's 50% share of NWSA CIP
$263M
- Projects related to NWSA $90M

• 2026-2030 CIP was $961 million
• Stormwater Utility is self-funded and
not included in the Draft Plan of
Finance

24

Seaport Capital Funding (2027-2031)
•

62% of funding from operating sources:
- Includes cash funding and revenue bonds
paid from operating cash
- Decrease in existing revenue bond debt
service provides funding capacity

•

30% is from tax levy related sources:
- Tax levy cash
- G.O. bonds paid by the tax levy

•

7% from other sources including grants
and Harbor Maintenance Tax
(HMT)/WRDA
- Funding sources limited to eligible projects

25

Airport Capital Spending (2027-2031)
• Airport is a self-supporting enterprise
• 78% in design or construction
• $213M (5.1% of CIP) in reserves for
unanticipated needs

26

Airport Capital Funding (2027-2031)
•

93% funded from operating cash flow and
revenue bonds

•

$273M capital grants (AIP, AIG, ATP)
- S Concourse Evolution, Noise insulation
projects, airfield pavement, others

•

Other funding includes:
- Customer Facility Charges after the
payment of CFC eligible debt service

•

Most PFC's are used to pay revenue bond
debt service; remaining PFCs are available to
cash fund capital

27

Port-wide Revenue Bond Debt Service Coverage Forecast
• Represents all net income of the Port
(including Airport and Seaport) divided
by all revenue bond debt service
• Tax levy after payment of G.O. bond
debt service adds to coverage
• Coverage informs debt and capital
management and provides a measure
of financial sustainability and is critical
to investors and rating agencies
• Decreasing Port-wide DS coverage is
driven by large Airport capital
spending but is consistent with the
Port's strong credit rating

28

2026 Finance Accomplishments
 Refresh of the Port's Subordinate Lien
- Adoption of Master Resolution and amendment of (2) Series Resolutions
 Extension of LOC supporting the Ports 2008 Variable Rate Demand Bonds (VRDBs)
 2026 First & Intermediate Lien Revenue Refunding Bonds
- Par Value: $251.9 million; resulted in $16.4 million of NPV debt service savings
 2026A Subordinate Lien Revenue Bonds (VRDBs)
- Par Value: $225 million; proceeds used to fund Airport CIP
 2026B Subordinate Lien Revenue Bonds (Direct Bank Loan)
- Par Value: $120 million; proceeds used to pay off outstanding commercial paper

29

2027 Finance Initiatives
• Issue revenue bonds to continue funding Airport CIP
• Monitor need for new G.O. bonds to support Seaport capital needs
• Monitor opportunities to refund debt for interest savings

- Port has outstanding Revenue and G.O. Bonds that will be callable in 2027
- Refunding subject to market conditions and achieving Port debt service savings
targets per policy

• Renewal or replacement of expiring letter of credit

30

Increasing Financial Capacity for the Port of the Future
• Operating Expenses

- continue efforts to reduce growth

• Operating Revenues

- explore opportunities to generate revenues (without significant capital
investments)

• Capital Development

- review prioritization and delivery methods

• Financial Management

- maintain strong credit and cost-effective debt issuance
- ensure rigorous evaluation of investments

31

2027 Budget Process: Next Steps

2026 Budget
Development
(June-August)

Budget Briefings
(SeptemberOctober)

Plan of Finance
and Tax Levy
Briefing

Introduction &
Public Hearing for
2027 Budget

(October 27)

(November 17)

Adoption of 2027
Budget
(November 23)

Operating and Capital Budget Reviews roll-up into Plan of Finance and Port-wide Budget
32

Appendix
2027 Preliminary Budget
October 27, 2026

Contents
Pages
35

Additional Tax Levy Information

54

Industrial Development District Levy & Tax Increment Financing Information

59

POF Support: Airport and Seaport CIP and Funding

61

Credit Ratings

34

Port's Taxing Authority
Port taxing limitations: Port is limited by the most restrictive - currently the 1%
limit
• 1% limit
- The maximum levy is increased each year by the 1% limit factor
- Prior year's maximum is increased by the lessor of 1% or inflation
- New construction is added
- The maximum levy for 2027 is estimated to be ~$122.0 million
• 45 cent limit
- The amount of the tax levy in any given year is limited to 45 cents per $1000 of
assessed value
- For 2026, this limit would translate to ~$395.0 million
- Excludes the amount needed to pay G.O. bond debt service
35

Levy Policies and Practices - 2027 Update
• Manage General Obligation (G.O.) debt service to no more than 70% of the
annual levy
- Prior practice was limit G.O. debt service to 75% of annual levy

• Capital investment criteria
• Pay for legacy environmental costs
• Limited Airport use - costs ineligible for Airport funding per FAA
• Retain tax levy flexibility - levy below the statutory maximum

- 2026 levy at 75% of the maximum; 2027 recommendation at 80% of the maximum
- The difference between the actual levy and the maximum reserves "dry powder" for
future resiliency
- Supports Port's strong credit ratings

36

Optimizing Financial Flexibility - A Range of
Options that Balance the two Levers of Flexibility
Leverage (% levy used to pay G.O. Bonds)
40
60
80
100

% of Maximum Levy
100
90
80
70
60

37

Tax Levy Use Criteria for Capital Investments
Uses: Commission established in 2015; updated in 2018
Operating Cash

Tax Levy

Business income sufficient to
support investments

Economic benefit

Strategic Initiatives

Short payback/
Self funding

No or long payback

Location

South Harbor

North Harbor

Asset Renewal

38

2016-2027 Tax Levy & Millage Rate (1)

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

39

Taxpayer Impact
2026

2027
preliminary

Tax Levy ($ million)

90.2

97.6

Estimated millage rate ($/1000)

0.0980

0.1112

Median home value ($) (1)(2)

887,000

850,000

$87

$95

Estimated median home Port tax ($)
(1)
(2)

2026 per King County; 2027 data is not yet available
2025 median assessed value was $844,000

•

The Port's levy was approximately 1.1% of total property taxes levied in
King County in 2026

40

Overall Taxpayer Impact - 2026
• Of the $8.5 billion of
property taxes paid in King
County, about 1.1% goes
to the Port
• In 2026, the median
homeowner paid $8,204 in
total property tax with $87
going to the Port

41

Tax Levy & Related Funds
• In addition to the tax levy fund, the Commission has established other related funds that are funded
by the tax levy
• These funds are restricted by Port policy, not law, and currently include:
- Environmental Legacy Fund (ELF) - established in 2023 to provide funding for legacy
environmental liabilities. Will be used in combination with G.O. Bonds
- Transportation & Infrastructure Fund (TIF) - established in 2010 to provide funding for the
Port's various regional transportation commitments. TIF is a stand-alone fund that fully funds
current obligations
• The Port is also able to issue General Obligation (G.O. Bonds). The proceeds of the bond sale can be
used in lieu of levy cash
- GO Bond debt service is paid from tax levy fund
42

Transportation and Infrastructure Fund (TIF)
TIF ($ million)
Beginning Balance
Transportation Investments
Ending Balance
Transportation Investments ($ million)
Seattle Heavy Haul Network
Fast Corridor II
Safe and Swift
Puget Sound Gateway (SR 509)
TOTAL

2027
$

$

2.5 $
1.5
15.0
19.0 $

2027-2031
Post 2031
$
45.7 $
17.9
(27.8)
(4.0)
17.9
13.9

2028

2029
2.0 $
0.8
2.8 $

2030
2.0 $
2.0 $

2031
2.0 $
2.0 $

2027-2031
2.0 $
2.0 $

Post 2031

10.5 $
0.8
1.5
15.0
27.8 $

4.0
4.0

TIF has provided funding for other regional transportation efforts, including:
• West Seattle Bridge
• FAST Corridor I
• South Park Bridge
• East Marginal Way Grade Separation
43

Environmental Legacy Fund (ELF)
ELF ($ million)
Beginning Balance
Additional Contribution (1)
Environmental Remediation Liabilities
Environmental Grant Receipts (2)
Ending Balance

2027-2031 Post 2031
$
31.2 $
(34.9)
(8.0)
3.7
8.0
-

• ELF was established in 2023 to provide funding for legacy environmental liabilities
• Funded an estimated $50.7 million of Seaport environmental remediation efforts through 2026 (including
2026 forecast)
• Environmental efforts include, but are not limited to:
• Lower Duwamish Superfund
• T-108 Chiyoda site
• Terminal 25 South
• Terminal 115 (Boeing Plant 1)
(1)
(2)

No contribution currently assumed for 2027. Additional contributions will be reviewed on an annual basis.
Does not represent all assumed environmental costs during the forecast period. Additional environmental liabilities assumed to be funded with tax levy fund upon
depletion of ELF.
44

Tax Levy Sub Fund Balances
Established by the Commission to Prepare for Future Obligations
Millions

Millions

* For future commitments, currently forecast at $4M
45

Environmental Spending

* Based on known liabilities only. Includes spending from tax levy, ELF and G.O. bond proceeds (if needed). Additional environmental
remediation spending is expected beyond 2031

46

2027 Port Community Program Funding by Activity
Economic Development
•
•
•
•

Diversity in Contracting -$2.4M
Tourism Marketing Support - $2.1M
EDD Partnership Grants - $950K
Maritime Blue - $100K

Workforce Development
*
2027
Proposed
Budget:
$19.6M

• Workforce Development Department - $5.0M
• High School Interns - $550K

Equity, Diversity & Inclusion
•
•
•
•
•

OEDI Department - $4.4M
South King and Port Communities Fund - $2.6M
Friends of the Waterfront- $750K
Staff Costs supporting DVCEP & SKCCIF - $776K
Duwamish Community Equity program (DVCEP) - $627K

•

$1.4M

SeaTac Community Relief
* Detailed list continued on next slides

47

2027 Proposed Community Programs
2027
Proposed
Budget
2,648
627
950
2,124
1,400
100
5,018
550
2,388
4,404
750

% of the 2027
2027
Budget
Funded
Funded
by the levy
by the levy
2,648
100.0%
627
100.0%
950
100.0%
870
41.0%
0.0%
1,400
100.0%
100
100.0%
3,873
77.2%
299
54.4%
300
12.6%
2,127
48.3%
750
100.0%

2024
Budget
2,214
471
950
1,875
466
1,400
175
5,077
486
2,304
2,065

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

2026
Revised
Budget
2,195
617
950
2,134
518
1,400
180
4,972
523
2,463
2,540
2,000

Sub Total

18,803

19,591

20,642

18,811

11,796

63%

Payroll charged to the Levy 4
Grand Total

589
19,392

781
20,372

848
21,491

776
19,587

776
12,572

100.0%
64.2%

Program (in $000)
1) South King and Port Communities Fund 1
2) Duwamish Valley Community Equity Program
3) EDD Partnership Grants
4) Tourism Marketing Support Program
5) Airport Spotlight Ad Program*
6) City of SeaTac Community Relief*
7) Maritime Blue (formerly Maritime Innovation Center)
8) Workforce Development
9) High School Internship Program
2
10) Diversity in Contracting
11) Equity, Diversity & Inclusion 3
12) Friends of the waterfront

Notes:
1) SKPC budgeted under Ext Rel, EDI, and DIC
2) $250K Small Business Accelerator under DIC is part of item 1 SKPC
3) $1.9M for Economic Opportunities for Communities (EOC) under EDI is part of item 1 SKPC
4) 2027 Payroll only for CPO & Ext. Rel. Other payroll from HS Interns, WFD, EDI are included in the individual items above
* Non-Operating Accounts

48

Community Programs Funded by Tax Levy
Program (in $000)
1) South King and Port Communities Fund 1
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
7) High School Internship Program
2
8) Diversity in Contracting
9) Equity, Diversity & Inclusion 3
10) Friends of the waterfront
11) Other
Total
Payroll charged to the Levy 4
Grand Total

2024
Funded
by the levy

2025
Funded
by the levy

2026
Funded
by the levy

2027
Funded
by the levy

Inc/(Dec) from 2026
Revised Budget
$ Change
% Change

2,214
471
950
1,400
175
3,863
259
300
203
806
11,772

2,205
619
950
1,400
175
3,762
280
310
226
750
1,608
12,404

2,195
617
950
1,400
180
3,827
290
300
230
2,000
1,438
13,577

2,648
627
950
1,400
100
3,873
299
300
2,127
750
870
11,796

453
10
(80)
46
9
1,897
(1,250)
(568)
(1,781)

17.1%
1.6%
0.0%
0.0%
-80.0%
1.2%
3.0%
0.0%
89.2%
-166.7%
-65.3%
-15.1%

580
12,352

781
13,185

848
14,426

776
12,572

(72)
(1,854)

-9.3%
-14.7%

Notes:
1) SKPC budgeted under Ext Rel, EDI, and DIC
2) $250K Small Business Accelerator under DIC is part of item 1 SKPC
3) $1.9M for Economic Opportunities for Communities (EOC) is part of item 1 SKPC
4) 2027 Payroll only for CPO & Ext. Rel. Other payroll from HS Interns, WFD, EDI are included in the individual items above
* Non-Operating Accounts

49

Major Capital Projects Funded with Levy/G.O. bonds
• T91 Berths 6&8 redevelopment
and dock rehabilitation
• T91 Uplands development
• Fishermen's Terminal - docks,
buildings and site
improvements

Funding flexibility supports financial
resilience
- Projects may be funded with either tax levy or
G.O. bonds depending on funding availability
- Future funding availability may result in some
projects being funded with the General Fund
or Revenue Bonds

• East and West Waterway
deepening
• NWSA North Harbor projects -
50% share

50

2026 Tax Levy Fund Sources and Uses
($ million)
SOURCES OF TAX LEVY FUNDS
2026 Beginning Levy Fund Balance
Annual Tax Levy
Investment Income
Total Sources

2026
$
25.0
90.2
0.7
$ 115.9

USES OF TAX LEVY FUNDS
G.O. bond debt service (existing)
Community Investments
Seaport Capital Investments
Transfer to ELF
Aviation NOISE
Other
Total Uses

$

Projected Ending 2026 Levy Fund Balance

$

38.9
15.2
14.3
5.0
4.0
0.4
77.8

$

38.1

Note: Excludes ELF and TIF
51

5-year Tax Levy Fund Sources and Uses
($ million)
SOURCES OF TAX LEVY & RELATED FUNDS
Beginning Balance - Tax Levy
Beginning Balance - ELF
Tax Levy Collections
Existing GO Bond Proceeds
Future GO Bond Proceeds
Environmental Grant Receipts
Total Sources

2027-2031
$
38
31
502
78
250
4
$
903

USES OF TAX LEVY & RELATED FUNDS
G.O. Bond Debt Service (existing)
G.O. Bond Debt Service (new)
Environmental Remediation Liability (Non-Airport)
Seaport Capital Investments
Sound Insulation
Community Programs
Total Uses

2027-2031
$
180
73
263
318
7
63
$
904

Note: Excludes TIF
52

Airport and Seaport Benefit from the Tax Levy
Airport

Seaport

Certain Noise Mitigation Projects*

Legacy Environmental Remediation

City of Seatac Safety Payment under ILA (expires 2027) Capital Investments (including G.O. Bonds)
Tourism

Tourism

Certain Community Programs

Certain Community Programs

Public Expense/Transportation Project

Public Expense/Transportation Project

Supports Revenue Bond Debt Service Coverage

Supports Revenue Bond Debt Service Coverage

* Includes Sound Insulation Repair and Replacement Pilot Program & Highline School District NOISE spending not eligible for airport funding
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IDD Levy - Background
• Port can levy property tax within an Industrial Development District (IDD)
- In addition to regular property tax
- A port can form multiple districts
• Coextensive with port district, or
• Smaller area within the Port district
- The Port already has two Industrial Development Districts
• Port can implement the levy twice - Port of Seattle implemented first round in 1963
• Purpose is to provide for harbor improvements or industrial development of marginal lands
- Broadly defined
- Includes areas of poor planning or declining tax receipts

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IDD Levy - Implementation
• Port may implement a second round based on a new formula
- Maximum of ~$2.4 billion over a period of up to 20 years
• Average amount = ~$125 million (for 20 years)
- Port can establish a smaller IDD or collect a lesser amount, but cannot bank the
unused capacity

• Process to implement
- Publish notice by April 1 to begin collecting the next year
- If within 90 days, a petition of 8% of voters (voting in the most recent gubernatorial
election) opposes, the Port must hold a special election to approve the levy

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IDD Levy Information: "Marginal lands" are defined to include property
subject to the following (RCW 53.25.030) conditions:
1. An economic dislocation, deterioration, or disuse resulting from faulty planning.
2. The subdividing and sale of lots of irregular form and shape and inadequate size for proper usefulness and development.
3. The laying out of lots in disregard of the contours and other physical characteristics of the ground and surrounding
conditions.
4. The existence of inadequate streets, open spaces and utilities.
5. The existence of lots or other areas which are subject to being submerged by water.
6. By a prevalence of depreciated values, impaired investments, and social and economic maladjustment to such an extent
that the capacity to pay taxes is reduced and tax receipts are inadequate for the cost of public services rendered.
7. In some parts of marginal lands, a growing or total lack of proper utilization of areas, resulting in a stagnant and
unproductive condition of land potentially useful and valuable for contributing to the public health, safety and welfare.
8. In other parts of marginal lands, a loss of population and reduction of proper utilization of the area, resulting in its further
deterioration and added costs to the taxpayer for the creation of new public facilities and services elsewhere.
9. Property of an assessed valuation of insufficient amount to permit the establishment of a local improvement district for the
construction and installation of streets, walks, sewers, water and other utilities.
10. Lands within an industrial area which are not devoted to industrial use but which are necessary to industrial development
within the industrial area.

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Tax Increment Financing
• RCW 39.114 allows certain
jurisdictions to form Tax Increment
Areas (TIA)
• Maximum area is $200 million of
assessed value
• Port taxes on any increase in
assessed value goes to the TIA and
not to the Port
• Approximately 40 jurisdictions can
form TIAs within the Port's
boundaries

• There are currently four active TIAs
within King County
• City of Bellevue formed TIA in 2026 -
Legislature increased maximum
assessed value to $500 million
Impact on Port Tax Levy

Year
2024
2025
2026

Port Tax Levy
Diverted to TIAs ($)
5,537.98
5,893.00
11,232.79

Total

22,663.77
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Managing for a Successful Port of the Future
•
•
•
•
•
•

Risks to the Plan

Mitigations

Business disruptions - pandemic, recession
Regulatory and legal requirements
Federal funding uncertainty
Aging infrastructure and unanticipated
investments
Limited flexibility to the CIP
Looking beyond 2031
- Airport and Seaport capital plans assume
lower spending levels

• Conservative budgeting provides upside potential
• Continued Demand for Airport and Cruise
businesses
• Greater Cost certainty
- Environmental Liabilities are being settled
- Airport mega projects are being completed
• Resilient financial metrics
• Begin efforts to increase capital capacity
• HMT

Risk of over-optimism is greater than the risk of pessimism
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Seaport CIP and Funding
Seaport CIP
Maritime
$
NWSA - 50% Share (North & South Harbor)
NWSA - Reserve & Port Projects (1)
Total
$
Allocated Central Services CIP
Total Seaport Funded CIP
$

2027-2031
($ million)
681.9
263.4
90.3
1,035.6
13.8
1,049.4

(1) Includes N. Harbor channel deepening and other 100% Port legacy
costs in N. Harbor.
Note: totals may not add due to rounding

2027-2031
($ million)

Seaport Funding Sources
Operating Cash (1)
Grants
Harbor Maintenance Tax (HMT)
Tax Levy & Future GO Bond Proceeds (2)
Existing G.O. bond proceeds
Future revenue bond proceeds
Total Seaport Funded CIP

$

$

469.2
26.7
50.2
240.0
78.5
184.8
1,049.4

(1) Includes non-airport income available after payment of revenue bond
debt service.
(2) Annual levy forecasted at 80% of the Port's maximum annual allowable
levy.
Note: totals may not add due to rounding

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Airport CIP and Funding
2027-2031
($ million)

Airport CIP
S Concourse Evolution
Baggage Optimization
2026-2030 AFLD PVMNTS
Main Terminal Improvement
SEA Gateway
C Concourse Expansion
Other Capital Projects
SAMP Preliminary Planning/Design(1)
Proposed New Projects
CIP Reserves
TOTAL
Allocated Central Services CIP
Total Airport Funded CIP

$

$
$

1,579.4
449.0
353.2
195.8
35.1
9.5
782.9
161.9
308.4
213.2
4,088.4
59.5
4,147.9

2027-2031
($ million)

Airport Funding Sources
Future revenue bond proceeds
Operating Cash (1)
Grants
Existing revenue bond proceeds
Customer Facility Charge (CFC)
Total Airport Funded CIP

$

$

2,870.6
803.0
273.4
183.3
17.7
4,147.9

(1) Includes airport income available after payment of revenue bond
debt service.
Note: totals may not add due to rounding

(1) Sustainable Airport Master Plan
Note: totals may not add due to rounding

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Current Credit Ratings
General Obligation Bonds
First Lien Revenue Bonds
Intermediate Lien Revenue Bonds
Subordinate Lien Revenue Bonds
Fuel Hydrant Special Facility Bonds

Fitch
AAAA
AAAA-

Moody's
Aaa
Aa2
Aa3
A1
A1

S&P
AA
AA
AAAAA+

Noted Credit Strengths:
• Diverse asset and revenue base
• Airport's market position and enplanement
levels
• Strong balance-sheet liquidity levels
• Conservative debt structure and healthy debt
service coverage ratios
• Prudent management of the Tax levy including
maintaining a cushion
• Strong governance and management
• Long-range strategic and sustainability plans
• Vibrant and resilient area economy

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