Item No.

__10a_supp _____

Date of Meeting: November 17, 2026

Introduction & Public Hearing
of the Preliminary 2027 Budget
11/17/2026

Overview
• Changes after the Prelim Budget Doc
• 2027 Operating Budget Highlights
• 2027 Commission Priorities
• 2027 Major Budget Request Items
• 2027 Community Programs
• 2027 Budgeting with Equity
• 2027-2031 Capital Plan
• 2027 Sources and Uses of Funds
• 2027 Proposed Tax Levy
• Remaining 2027 Budget Schedule
2

Changes after the Preliminary Budget Published
Aviation Division - Operating Revenue decreased $1.2M or -0.1%
• Aeronautical revenues decreased ($149K):

o ($149K) - decrease resulting from updated cost recovery calculation

• Non-Aeronautical revenue increased $68K:

o $68K - increase to refine cost recovery for non-airline terminal lease
space

• Non-Operating, GASB 103 Adjustment:

o ($1,076K) - reclass Account Receivable Interest Income from Op to
Non-op

3

Changes after the Preliminary Budget Published
Aviation Division - Operating Expense increased $1.7M or 0.4%:
• $758K - increase for new collective bargaining agreement for
Electrical Workers and Electronic Technicians (contingent upon
Commission approval of agreement) and Utility Workers (contingent
upon Commission approval of agreement)
• $500K - Airport Dining & Retail cost of doing business study
• $300K - increase in Siemens Direct Digital Controls system contract
(contingent upon Commission approval of contract)
• $162K - increase in SmartCarte contractual rate increase
• $3K - B&O Adjustments based on Revenue changes
• ($50K) - Reduction of Childcare Bridge Strategy to $200K
• ($15K) - Baseline reduction refinements

4

Changes after the Preliminary
Budget was Published
• Maritime Division
-
-
-

Reclass $207K revenue from Op to Non-Op (GASB 103
Accounts Receivable Interest Income adjustment)
$38K increase in O&M mainly due to SWU
$245K reduction in NOI

-

No change

-

No change

-
-
-

$164K increase in Revenue due to the rate increase
$15K increase in O&M due to utility tax
$149K increase in NOI

-

$3.6K increase in O&M due to SWU

• Economic Development Division
• Central Services
• Storm Water Utilities

• NWSA/Joint Venture

5

Environmental Scan Summary
Unprecedented political and
economic uncertainty

Cuts in federal climate change
programs and funding

Effects of trade, immigration and
other policy actions

Impact of increased inflation
due to tariffs on operating,
capital and environmental costs

Post pandemic growth moderating
Multiple years of rapid expense
growth
Federal funding reductions and
weakening operating revenues

Rapid technological advances
including Artificial Intelligence
and growing sophistication of
cyber threats

6

2027 Budget Strategies
• Review and prioritize operational needs to limit expense growth
• Review the needs to fill all the vacant positions
• Limit new FTEs to roles that support revenue growth, economic
development, or efficiency measures
• Assess affordability of capital plans considering increased
inflation and revenue risks
• Strengthen the focus on sustainability, adaptability and
resiliency in spending and business plans

7

2027 Operating Budget Highlights
($ in thousands)
2027
Proposed
Budget

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

2024 Actual

2025 Actual

2026 Revised
2026 Budget
Budget

1,021,838

1,122,446

1,158,895

1,135,885

1,225,404

89,520

7.9%

28,945

11,611

1,002

24,791

27,343

2,552

10.3%

1,050,783

1,134,057

1,159,897

1,160,676

1,252,747

92,072

7.9%

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

675,431
(22,790)

698,282
(25,970)

731,141
-

758,484
-

786,717
-

28,234
-

3.7%
0.0%

O&M Expenses with Pension Credit

652,642

672,311

731,141

758,484

786,717

28,234

3.7%

6,731

4,698

35,864

8,521

8,795

274

3.2%

Total Operating Expenses GASB Comparable Basis

659,373

677,009

767,005

767,004

795,512

28,507

3.7%

Net Operating Income (with Pension Credit)

369,196

450,135

427,754

377,401

438,687

61,286

16.2%

Operating Revenues
GASB 87_96_103 Revenues
Total Operating Revenues GASB Comparable Basis

GASB 87_96_103 Expenses

• Operating revenues up 7.9% to $1,225 million from 2026 revised budget
• Operating expenses up 3.7% to $787 million from 2026 revised budget
• Net Operating Income up 16.2% to $439 million from 2026 revised budget
8

Commission 2027 Budget Priorities (Aviation)
•

$200K Childcare Bridge Strategy to support SEA childcare policy implementation efforts
in partnership with External Relations and Office of Equity, Diversity, and Inclusion.

•

$500K Airport Dining & Retail Cost of Doing Business Study to assess tenant
competitiveness, passenger behavior, and the full cost of doing business at SEA, with the
first report to the Aviation Committee by end of Q2 2027.

•

Continue to make progress on preconditioned air equipment maintenance, replacement,
and usage.

9

Commission 2027 Budget Priorities (Maritime)
$81K Duwamish Hub/Environmental Outreach to support
operations of the community resource space, collaborate with
residents on local restoration efforts, and advance
environmental stewardship and green initiatives.
$50K Sea Lion Mitigation to find new & innovative ways to
address this issue.
$50K Cruise Alternative Fuel Tariff Assessment to explore an
alternative fuel tariff that could help accelerate low-carbon fuel
adoption by offsetting cost barriers for cruise operators; the Port
will conduct legal and economic analysis to understand its
feasibility and potential impacts. In Legal Budget.

10

Commission 2027 Budget Priorities (EDD)
$200K English for Speakers of Other Languages
(ESOL) Pathways- (included in baseline budget) to
support English language learners in accessing
workforce development programs that require
English proficiency.
$100K Green Economy (included in baseline
budget) to advance the Port' sustainability goals.
$50K Advancing Sustainable Fuels (included in
baseline budget) to advocate for sustainable fuel
development, industry collaboration, and
decarbonization objectives.

$50K Phase II: Small Business Contract
Readiness (included in baseline budget) to
implement outreach and technical assistance
initiatives to help small business partners.
$50K Core Plus Maritime Funding (included in
baseline budget) to promote curriculum program in
near-port and tribal schools managed by
Muckleshoot and Suquamish Tribes.

11
11

Commission 2027 Budget Priorities (Central Services)
$546K Duwamish Valley Community Equity Program to support
green jobs, and programs that promote community-port
collaboration.
$134K for Language Access Program to increase language access
for speakers with limited English proficiency.
$88K for Anti-Human Trafficking to support the Port's antihuman trafficking campaign efforts.
$37K Port U: Port 101 Adult Education Series to increase
awareness of Port programs, initiatives, and facilities.

12

2027 Major Budget Request Items
Description

Total ($ in thousands)

STAC/TSA Staffing - Exit Lane Coverage & Divesting (AV)

$4,830

Expense Items with Capital Projects (AV)

$2,181

Tenant Project Manager Support - Tenant/ADR (AV)

$1,855

Part 150 Noise and Land Use Compatibility Study (AV)

$1,400

Self Contained Breathing Apparatus (SCBA) Replacement (AV)

$750

Clean Buildings Energy Efficiency Measures (AV)

$700

Pavement Management Plan (AV)

$460

New Air Service Incentives (AV)

$350

13

13

2027 Major Budget Request Items
Description

Total ($ in thousands)

Outside Services for Derelict Vessels Support (MD)

$350

Public Defenders Office and King County Jail Contract (CS)

$185

Green Economy, Energy Sandbox, and T91 DOE Grant (EDD)

$177

Police Portable Radios, Marine Patrol Unit dive equipment & other items (CS)

$144

WPPA, SnoValley Heritage Trail & Multi sector sponsorships (EDD)

$115

Computer Replacement (CS)

$100

Data Modernization & Group Policy Management tool (CS)

$95

Mental Health and Wellness Program (CS)

$71

Construction outreach, training, placement and retention program (EDD)

$50

14
14

Port Community Programs
Duwamish Valley Job Fair

SKPC EIP Meeting

*

* Detailed list included in the Appendix.
15

2027 Port Community Program Funding by Activity
Economic Development

• Diversity in Contracting -$2.2M (excludes the $250K for
SKPC)
• Tourism Marketing Support - $2.1M
• EDD Partnership Grants - $950K
• Maritime Blue - $100K

*

2027
Proposed
Budget:
$19.6M

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

Equity, Diversity & Inclusion

• OEDI Department - $4.4M (includes $1.9M for SKPC)
• South King and Port Communities Fund - $750K without
the $1.9M from EDI (shown above). Total for the whole
program $2.6M
• Friends of the Waterfront- $750K
• Staff Costs supporting DVCEP & SKCCIF - $776K
• Duwamish Community Equity program (DVCEP) - $627K

SeaTac ILA
•

$1.4M

* Detailed list included in the Appendix.
16

2027 Port Community Program funded by the levy
Economic Development
•
•
•
•

EDD Partnership Grants - $950K
Tourism Marketing Support - $870K
Maritime Blue - $100K
Diversity in Contracting -$50K

Workforce Development
• Workforce Development Department - $3.9M
• High School Interns - $299K

Equity, Diversity & Inclusion

• OEDI Department - $2.1M (includes $1.9M for SKPC)
• South King and Port Communities Fund - $750K without
the $1.9M from EDI (shown above). Total for the whole
program $2.6M
• Staff Costs supporting DVCEP & SKCCIF - $776K
• Friends of the Waterfront- $750K
• Duwamish Community Equity program (DVCEP) - $627K

SeaTac ILA
•

*

$1.4M

* Detailed list included in the Appendix.

2027 Proposed Budget funded by the levy: $12.6M
17

2027 Budgeting With
Equity Summary

18

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

19

Port Wide Equity Spending as a Percentage of Total OpEx

20

2027-2031 CIP

21

2027-2031 CIP Summary
2027
Budget
Committed Capital Projects
Aviation Division
Maritime Division
Central Services
Other
Total Committed
Business Plan Prospective Projects
CIP Cashflow Adjustment Reserve
Total CIP

896,343
185,633
13,598
647
1,096,221
101,617
(180,902)
1,016,936

2027-2031
CIP
3,177,858
418,731
33,272
27,535
3,657,396
1,223,241
0
4,880,638

% of 2027 Total
Committed
81.8%
16.9%
1.2%
0.1%
100.0%

Notes:
1) Definitions and details of the capital budget can be found in Section IX.
2) Includes the Stormwater Utility and NWSA Joint Venture

22

2027 Sources and
Uses of Funds

23

2027 Sources of Funds
Operating Revenues
without NWSA

45.9%

Proceeds from Bond Issues

34.4%

Passenger Facility Charges

3.9%

Tax Levy

3.8%

Interest Receipts

3.1%

NWSA Distributable Cash

3.0%

Grants and Capital
Contributions

2.2%

Rental Car Customer
Facility Charges

2.0%

Other Receipts

1.5%

• 45.9% of funding sources
comes from operating
revenues w/o NWSA
• 34.4% of funding sources
comes from bond
proceeds

Total Sources: $2,546 million

• The tax levy makes up
3.8% of total funding
sources in 2027

24

2027 Uses of Funds
Capital Expenditures

41.5%

Total Operating Expenses

•

Plan to spend about
41.5% of total funds
on capital projects
in 2027

•

32.1% of total
expenditures on
operating expenses

32.1%

Interest Payments

11.4%

Bond Redemptions

10.7%

Payment to NWSA for Capital
Expenditures

3.1%

Public Expense

0.9%

Other Expenses

0.4%

Total Uses: $2,451 million

25

2027 Tax Levy

Context of the Levy Discussion
2026 Levy Discussion
•

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

March Retreat
•

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

Proposal
•

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

27

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

28

Levy Scenarios
Taxpayer Lense

Investor Lense

Current - 75/75

Modest annual increases, funds Provides financial flexibility by
key initiatives
managing levy amount and
leverage

Maximum levy - rainy
day fund

Sharp increase in the levy, no
immediate benefit

Concern that levy will remain
high and rainy-day fund will be
spent

Change in Resource
Capacity 2026-2030

$33 million one time

Maximum levy - invest Sharp increase in the levy,
value depends on use

Concern that levy will remain
$33 million one time
high, reason on investment will
be an issue

Adjusted current -
e.g., 80/70

Provides financial flexibility by
managing levy amount and
leverage

Moderate increase in the levy,
value depends on use

$67 million 2027-2035

29

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

30

2027 Est.

2026

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

31

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
capital (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
assets. The Commission has chosen to keep it well below the legal maximum.

32

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.

33

Our needs are outpacing the current approach
Infrastructure upgrades & modernization

Aging and at-risk assets

Mission opportunities

• T- 91 Electrical System M o d ernizatio n
• U p d ating Infrastructure fo r Future fuels
• Waterfro nt C lean Energ y Strateg y
Im p lem entatio n
• Enhancing Infrastructure Resiliency

• S eism ic up g rad es
• Pier 69 renewal
• M o o ring d o lp hins
• FT N o rth West D o ck
• S alm o n Bay Investm ents
• Bulkhead rep lacem ents

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

34

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.

35

Remaining 2027 Budget Schedule
o Adoption of 2027 Budget on Nov. 23, 2026
o File the Statutory Budget with King County by Nov. 30, 2026
o Release the 2027 Final Budget Document on Dec. 4, 2026

36

Appendix

37

2027 Budget Process Recap
Jun 23

Commission Budget Study Session (Commission Priorities)

Jul 14
Sept 22

Commission Budget Study Session (Commission Priorities) & 2027 Budget
Development Briefing
2027 Central Services Operating and Capital Budgets Briefing and Port Wide Rollup

Oct 13

2027 Aviation Division Operating Budget Briefing

Oct 13

2026 Maritime and EDD Operating and Capital Budgets Briefing

Oct 20

Preliminary 2027 Budget Document provided to the Commission

Oct 22

Preliminary 2027 Budget Document released to the public

Oct 27

Tax Levy & Draft Plan of Finance Commission Briefing

Nov 17

Introduction & Public Hearing of the Preliminary 2026 Budget

Nov 23

Adoption of the 2026 Budget

Nov 30

File the 2026 Statutory Budget with King County

Dec 4

Release the 2026 Final Budget and Draft Plan of Finance
38

2026-7 Business Activity Forecasts
Aviation Division:
• Passenger volumes for 2027 projected to be 53.8M, 1.3% higher than 2026 forecast
• Funding operating needs and capital program:
o Manage growth of costs
o Deliver consistent growth through innovation in non-aeronautical revenues
Maritime Division:
• Cruise forecasts 329 vessel sailings with over 2.0 million
• Grain volume budgeted at 3.5 million metric tons, a 9.0% increase from the 2026 budget
• Commercial Properties target 90% occupancy rate at the end of 2026
• Conference and Event Center expects a 20.6% revenue increase from the 2026 revised
budget, driven by waterfront revitalization
Economic Development Division:
• Investing in regional economic growth through key initiatives. Expand the talent pipeline to
address labor shortages and workforce needs in the maritime, aviation, and construction
sectors
39

2027 Proposed Community Programs
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 ILA*
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
Sub Total
Payroll charged to the Levy
Grand Total

4

2027
Proposed
Budget
2,648
627
950
2,124
1,400
100
5,018
550
2,438
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
12.3%
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

18,803

19,591

20,642

18,861

11,796

63%

589
19,392

781
20,372

848
21,491

776
19,637

776
12,572

100.0%
64.0%

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

40

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 ILA*
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

41

2027 Operating Budget for Aviation
($ in thousands)
2024 Actual 2025 Actual

2026
Budget

2026
Revised
Budget

2027
Proposed
Budget

Inc/(Dec)
Inc/(Dec)
from 2026 from 2026
Revised
Revised
Budget($) Budget(%)
65,235
10.5%
11,871
3.5%
77,105
8.0%
3,323
33.7%
80,429
8.3%

Aeronautical Revenues
Airport Non-Aero Revenues
Total Operating Revenue
GASB 87_96_103 Revenues
Total Operating Revenues GASB Comparable Basis

520,942
340,360
861,301
15,287
876,588

545,307
363,215
908,522
(8,407)
900,116

617,786
367,381
985,167
(13,917)
971,250

618,565
343,592
962,157
9,872
972,029

683,800
355,463
1,039,262
13,195
1,052,457

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

548,405
(18,577)
529,828

558,138
(21,111)
537,028

588,135
588,135

589,858
589,858

604,041
604,041

14,183
14,183

2.4%
0.0%
2.4%

GASB 87_96_103 Expenses
Total Operating Expenses GASB Comparable Basis

2,033
531,861

5,167
542,195

9,800
597,935

8,101
597,958

8,265
612,306

165
14,348

2.0%
2.4%

Net Operating Income (with Pension Credit)

331,473

371,495

397,032

372,299

435,221

62,922

16.9%

42

2027 Operating Budget for Seaport
($ in thousands)
2024 Actual 2025 Actual

2026
Budget

2026
Revised
Budget

2027
Proposed
Budget

Inc/(Dec)
Inc/(Dec)
from 2026 from 2026
Revised
Revised
Budget($) Budget(%)
11,992
10.9%
(16)
-100.0%
(1,029)
-1.8%
1,359
22.4%
107
41.4%
12,414
7.1%
(771)
-5.2%
11,643
6.2%

Maritime
Economic Development
Joint Ventures 1
Stormwater Utility/ELIM
Central Services
Operating Revenues
GASB 87_96_103 Revenues
Total Operating Revenues GASB Comparable Basis

92,952
8
61,406
5,635
534
160,537
13,658
174,195

101,085
1
105,850
6,525
463
213,924
20,018
233,941

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

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

122,417
55,943
7,416
366
186,142
14,148
200,290

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

101,991
2,974
2,354
5,953
13,754
127,026
(4,212)
122,814

111,423
2,663
11,516
6,338
8,203
140,143
(4,860)
135,284

115,962
3,390
5,154
5,661
12,839
143,007
143,007

140,628
3,390
5,564
5,688
13,357
168,626
168,626

142,437
4,372
17,711
7,003
11,154
182,676
182,676

1,809
981
12,147
1,315
(2,203)
14,051
14,051

1.3%
28.9%
218.3%
23.1%
-16.5%
8.3%
0.0%
8.3%

GASB 87_96_103 Expenses
Total Operating Expenses GASB Comparable Basis

4,698
127,512

(469)
134,814

26,063
169,070

420
169,046

529
183,205

109
14,159

25.9%
8.4%

Net Operating Income (with Pension Credit)

37,723

78,640

30,721

5,102

3,465

(1,636)

-32.1%

Table Notes:
1) Includes NWSA Distributable Revenue

43

2027 Comprehensive Budget

($ in thousands)

(Combined Operating & Non-Operating Items)
2024 Actual 2025 Actual

2026
Budget

2026
Revised
Budget

2027
Proposed
Budget

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

Explanations

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

1,021,838
85,885
99,364
24,896
6,389
3,491
94,282
81,374
25,110
21,711
1,464,341

1,122,446
87,841
98,144
24,821
6,561
3,052
40,308
117,805
2,952
26,964
1,530,894

1,158,895
90,180
102,054
25,327
6,986
2,209
54,699
74,857
2,923
24,791
1,542,920

1,135,885
90,180
102,054
49,634
6,986
2,209
54,699
74,857
2,923
24,791
1,544,217

1,225,404
97,588
100,350
51,947
6,986
3,417
53,390
78,812
2,974
27,343
1,648,211

89,520
7,408
(1,704)
2,313
()
1,208
(1,309)
3,955
51
2,552
103,994

7.9%
8.2%
-1.7%
4.7%
0.0%
54.7%
-2.4%
5.3%
1.7%
10.3%
6.7%

Higher operating revenues from each division
A 8.2% increase proposed in 2027
Lower enplanements than 2027
Higher CFC revenue in 2027

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

652,642
277,917
150,434
14,365
11,150
41,608
91,107
1,239,222

672,311
298,355
174,153
15,184
4,320
(46,161)
1,118,162

731,141
308,165
210,147
17,309
6,263
34,873
1,307,899

758,484
308,165
210,147
17,309
6,263
8,048
1,308,416

786,717
342,538
222,468
20,848
20,999
7,744
1,401,314

28,234
34,372
12,321
3,539
14,736
(304)
92,898

3.7%
11.2%
5.9%
20.4%
235.3%
-3.8%
0.0%
7.1%

Higher operating expenses from operating divisions
More new assets coming to service
New bond issuances and higher interest rates in 2027
Higher Go Bonds Interest Expense in 2027
Higher Public Expenses in 2027 mainly due to WSDOT Gateway Program
Higher SBITA and Lease interest expenses offset by Acct Recv Interest

225,118

412,732

235,021

235,800

246,897

11,096

4.7%

Revenues over Expenses

Higher Non-Capital Federal Grant in 2027
Lower Capital Federal Grant in 2027
Higher interest rates and fund balance in 2027
In line with the 2026 budget
Higher GASB 87 lessor lease interest income in 2027

44

2027 FTE Summary
Aviation

Maritime Econ Dev.

Central
Services

Total

2026 Approved FTE's
Mid Year Approval
Eliminated
Net Transfers
Adjusted 2026 FTE's 1
2027 Budget
Eliminated
Transferred
New FTE's
Repurposed
Total 2027 Changes

1,387.4
1,387.4

324.5
324.5

18.0
5.0
23.0

985.0
1.5
(4.6)
(5.0)
976.9

2,714.8
1.5
(4.6)
2,711.8

(45.3)
(45.3)

(2.0)
(2.0)

-

(39.0)

-

2.0
(2.0)
(39.0)

(86.3)
2.0
(2.0)
(86.3)

Proposed 2027 FTE's

1,342.1

322.5

23.0

937.9

2,625.5

Notes:
1) Includes FTEs from Stormwater Utility in Maritime Division.
45

Equity in Budgeting
Highlights

46

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

47

2027 Port Wide Equity Spending by Category

Supplier Diversity

1,590,500
1,562,143
10,868,213

Removing Systemic Barriers

Environmental Justice

Engagement

9,711,515
1,698,690

'27 Budget

1,186,174

'26 Budget

1,187,675
1,135,925
8,954,235

Community Investments

Advancing Diversity

8,566,156
3,039,091
3,032,330

48

Port Wide Equity Spending Funded by Tax Levy
39.6%

39.6%

37.6%

38.2%

28.5%
22.7%

21.0%

2019

29.4%

2020

2021

2022

2023

2024

2025

2026 Bud

49

2027 Equity Spending Highlights
• Workforce Development Programs ($3,974K)
- Airport Employment Center ($1,145K)
- Youth Career Launch Program ($670K)
- Taxi Driver Employment Navigator ($375K)
- Construction Pre-Apprenticeship Services ($375K)
• South King and Port Communities Fund ($2,398K)
- Total SKPCF is $2,648K if including $250K in Diversity in Contracting in EDD
• Noise Part 150 Study ($1,397K)
• Transportation Pilot for SEA workers "SEA Moves" ($1,500K)
• EDD Partnership Grants ($950K)

50

2027 Equity Spending Highlights - Con't
• Duwamish Valley Community Equity Program ($626K)
• ADR Rental Equity Study ($500K)
• Veteran's Program ($378K)
• High School Internship Program ($299K)
• Childcare Bridge Strategy ($200K)
• Language Access Fund ($134K)
• Clean Fuel Policy Advocacy and Coalition Building ($100K)
• Anti-Human Trafficking ($83K)
• Equity Assessment Implementation ($50K)*
• Equity Index ($50K)
• Employee Resource Groups ($32K)

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

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

53

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

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.

54

The Step Today: 80/70
O p tio n

Taxp ayer lens

Investo r lens

A d d ed cap acity

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.

55

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

56

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

57

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

• The Port may approve a levy amount up to the maximum
allowable within statutory limits ($122.0 million in 2026)
• 2027 levy proposed to be $97.6 million
58

2016-2027 Tax Levy & Millage Rate (1)

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

59

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

60

GASBs 87 Lease and 96 SBITA Accounting Changes
• Require to report part of the lease payments from tenants (except for
leases related to aeronautical revenues) as non-operating interest
income, instead of operating revenues.
• No impact to the Port's overall Changes in Net Position.
• Treat leases more like a long-term financing arrangement, similar to a
loan for our tenants to use the Port facilities, with part of the lease
payments representing interest income on that financing
arrangement.
• Conversely, when the Port makes lease or subscription payments to
vendors (for the use of land, facilities, equipment, or subscriptionbased IT services) a portion of those payments is now classified as nonoperating interest expense.
61