1 Q Update & 2010 – 2014 Preliminary Plan of Finance Commission Meeting November 5, 2009

2 Agenda Budget Schedule Cargo Forecast Preview Q Update Preliminary Budget –Tax Levy Review –CIP Review –Operating Budget Review –Plan of Finance –Financial Goals

3 Budget Schedule November 5 - Today Preliminary Budget Presentation –2009 Forecast – Capital Program –2010 Statutory Operating Budget –2010 Tax Levy – Plan of Finance November 12 Study Session to review the proposed: –2010 – 2014 Cargo Forecast –2010 – 2014 Capital Program –2010 Statutory Operating Budget –2010 Tax Levy – Plan of Finance November 23 –Public Hearing –Adopt 2010 Statutory Operating Budget & 2010 Tax Levy

4 Cargo Forecast Preview - TEUs

5 Cargo Forecast Preview – Intermodal Lifts

6 Changes from Original 2009 budget to Q3 Update Operating Income down by $4.8 Million –Revenue down by $10.3 million Volume driven –Operating expenses before depreciation decreased by $3.4M Variable revenue related expenses down $2.0M –Depreciation expenses decreased by $2.0M Non Operating Expenses increased by $23.5M –Partial write-down of Blair Hylebos Peninsula Design Effort & Port Property –Increase in grant income –Decreased interest expense

budget compared to Q Update $ millions

compared to Q Update $ millions

Program Budget Spending BHP development suspension reduced 2009 expenditures by $64.6 million 2009 program budget expenditures also decreased by moving crane purchase to projected Lincoln Avenue Grade Separation (LAGS) bridge construction was added based on receiving grant funding

Preliminary Budget & Proposed 2010 Tax Levy

Tax Levy $ millions *2009 Debt service Includes an additional $2.2 million in called bonds

12 Tax Levy Limit Unutilized Levy

Yr Total Capital includes capitalized projects, land purchases, mitigation, and dredging $ millions Preliminary Capital Projects

Preliminary Non Capital Projects Yr Total $ millions

15 CIP Five-Year Planned Environmental Projects $ millions

Statutory Cash Budget

Budget Forecast – Plan of Finance $ millions

18 Financial Goal: Return on Revenue Actuals Projections

19 Financial Goal: Revenue Bond Debt Service Coverage

20 Financial Goal: Operating Cash Flow Actuals Projections $ millions

21 Financial Goal: Return on Assets

22 Acknowledgements Team Effort Operational budget process requires participation of 40+ non- finance personnel ranging from Executives to Administrative support 2009 budget process required significant effort from many including: –Al Cleaves – Operating budget and headcount –Ester Abenojar – Program budget & Port Revenue –Darren Arakaki - Non operating budget –Lien Dam – Non operating budget –Nicole Henry – Non operating budget –Rick Selvage – Plan of Finance