# 2014 Budget February 19, 2014

# MISSION

To identify and meet the critical trans portation infrastruc ture needs of the bistate region’s businesses, residents, and visitors: prov iding the highest quality, most efficient transportat ion and port commerce facilities and services that move people and goods within the regi on, providing access to

the rest of the nation and to the w orld, while strengthening the economic competitiveness of the New York-N ew Jersey Metropolitan Region.

## TABLE OF CONTENTS

Message from the Chairman of the Committee on Finance and the Executive Director

................. 3

2014 Budget Summary

.................................................................................................................... 5

2014 Budget Summary by Line Department

.................................................................................. 19

a. Aviation

....................................................................................................................... 21

b. Tunnels, Bridges and Terminals

................................................................................. 29

c. Port Authority Trans

- Hudson (PATH)

......................................................................... 37

d. Port Commerce

.......................................................................................................... 45

e. Real Estate and Dev elopment

.................................................................................... 53

f. World Trade Center

.................................................................................................... 59

2014 Budget Schedules

................................................................................................................. 65

a. Readers Guide

........................................................................................................... 67

b. Summary of 2014 Budget

........................................................................................... 68

c. Sources

....................................................................................................................... 72

d. Uses

............................................................................................................................ 76

e. Budget Support Schedules

......................................................................................... 82

f. Outstanding Obligations and Financing

..................................................................... 88

g. Staffing

........................................................................................................................ 90

h. Activity Highlights

....................................................................................................... 92

2014 Capital Budget

....................................................................................................................... 95

a. Summary by Depart ments

.......................................................................................... 97

b. Sorted by Department, Facility and Program

............................................................. 98

Appendices

................................................................................................ .................................. 111

a. Appendix A: Agency Overview

........................................................................... 113

b. Appendix B: Economic Outlook

......................................................................... 118

c. Appendix C: Budget Process and Fi nancial Policies

......................................... 122

d. Appendix D: Strategic Performance and Operational Performance

.................. 127

e. Appendix E: Glossary

......................................................................................... 130

# 2014 Budget Summary

February 19, 2014

## THE NUMBERS AT A GLA NCE

 **Revenues of $4.4 billion**  are $186 million higher when compared to the 2013 budget. This 4.4%

increase is due to higher tolls and fares from the scheduled increases, higher parking revenues

from short

- term rate increases, and increased flight fees mainly related to enhanced Aircraft

Rescue and Fire Fighting (ARFF) services

.

 **Core operating expenses**  **are flat at 1**  **.1%** over last year’s budget, which is less than the

expected regional rate of inflation of 2.1%, and represent a $28 million increase for:

o H igher insurance premium costs of $18 million in a post

- Sandy market and $9 million for

enhanced security guard services at the airports.

o Overall, the rest of the budget remained flat as the Port Authority has continued to

demonstr ate fiscal discipline in large part due to it continuous improvement initiatives and

cost

- cutting measures.

o Escalations in contrac ts and labor costs were offset with reductions in energy usage and

utilities costs, as well as human resources strategies around continued benefits reforms

and overtime reduction targets.

This year’s increase to the agency’s core operating budget as well as those of the last seven

years is as follows:

2014: 1.1% 2010: 0%

2013: 0.6% 2009: 0%

2012: 1.2% 200 8: 0.9%

2011: 0% 2007: 1.1%

 **New World Trade Center costs of $93 million** r elated to transitioning the World Trade Center

from a construction site to a symbol of renewal and as well as providing greater security and

safety to the public. These are for the operations, maintenance and management of World Trade

Center site

- wide facilities, as well as for policing, security and vehicle screening in anticipation of

opening a place of business for thousands of workers.

 **Enhanced Aircraft Rescue and Fire Fighting for $**  **61 million** provides a new FAA mandated

staffing model , which will require deployment of an additional 201 police officers, of which $59

million of cost will be offset by flight recovery fees

.

###  **Newly established Chief Security & Command Struct**  **ure is supported by $28 million**  to

centralize and enhance existing security , policing and public safety functions, programs and

resources, include cyber security and provide for a new recruit class to fill vacancies created by

transferring officers to the dedicated ARFF cadre and priority posts

. Security operating costs,

including policing for public safety, in the 2014 budget totals $652 million. When combined with

the $ 282 million for capital security projects

, we will spend close to $1 billion on secu rity in 2014,

bringing the agency’s total investment in security to $8.4 billion since the terrorist attacks on

September 11, 2001.

 **Record capital budget of $4.4 billion** for critical investment in our transportation assets to

replace and modernize bridges and terminals, invest in state of good repair of existing assets,

enhance capacity at our airports, seaports and rail system, and deliver the World Trade Center

.

## BUDGET SUMMARY

Sources of Funds

The Port Authority relies upon its own creditworthiness to access the capital markets to raise the

necessary funds for the financing of its capital programs. It is not dependent on state or local taxes from

New York or New Jersey and has no power to levy its own taxes or assessments. The agency generally

fund s its operating and capital expenditures through operating revenues generated by its facilities, the

issuance of bonds, notes and other obligations, receipt of grants, insurance proceeds and other

contributions, financial income earned on its investments, and the collection of Passenger Facility

Charges (PFCs) at its airports. In 2014, the sources of all funds are anticipated to be $8.2 billion,

including $4.4 billion in gross operating revenues

, $1.5 billion in bonds, $1.4 billion in other sources, $559

m illion in grants and contributions and $208 million in PFCs.

Gross Operating Revenues

Gross operating revenues in the 2014 budget are expected to increase by $186 million to $4.4 billion.

Projected gross operating revenues by category include $1.6 billion for tolls and fares, $1.7 billion in fixed,

variable and percentage rentals, $738 million in flight fees, $247 million for parking and $177 million in

miscellaneous revenues such as net leases and cargo facility charges.

Uses of Funds

The 2014 budget totals $8.2 billion and provides for $2.8 billion to operate the agency’s facilities, $4.4

billion in capital expenditures to build and improve upon the region’s transportation capacity and invest in

projects to advance economic growth in the region, $92 0 million for debt service on the agency’s Rentals

37% Tolls and Fares

36% Aviation Fees

17%

Parking

6%

Other

4% 

## 2014 GROSS OPERATING REVENUES

$4.4 BILLION

### outstanding bonds, notes and other obligations, and $113 million for other expenditures, which are

deferred and amortized in future periods.

Operating Expenses

The combination of $2.6 billion of core expenses and the $93 million for new costs as the World Trade

Center comes on line, $61 million of enhanced ARFF services and $28 million of centralized Chief

Security and Command Structure costs, results in a 2014 Budget operating budget of

$2.8 billion. When arrayed along our programmatic expense categories that show the functions on which

we spend our dollars, our operating expenses are anticipated to be $865 million for facility operations,

$634 million for security, $458 million for maintenance, $388 mill ion in management services, $319 million

in rent and $123 million in operating expenses associated with debt expense of special project bonds and

operating asset obligations.

Net Income

The facilities that generate net income - such as the airports, tunnels and bridges - along with financial

income - help pay for those facilities that have been operating at a loss - primari ly the mass transit

oriented operations, such as PATH, regional ferry services, and the bus terminals, as well as port

operations . For 2014, World Trade Center is also anticipated to operate at a net loss during this first year

of a multi

- year phase

- in pe riod of operational expenses being ahead of positive returns, and wh en

aggregated as an agency , net income is projected to be lower than last year

. Operations

31% Security

23% Maintenance

16%

Management Services

14%

Rent

12% Debt Expense

4% 2014 OPERATING EXPENSES BY CATEGORY $2.8 BILLION

### The following graph illustrates this split and compares anticipated 2014 net income to 2013:

*

- excludes non

- operating revenues, such as grants, contributions and PFC’s.

Capital Expenditures

In 201 4

, capital expenditures are planned to be $4.4 billion

. Spending for capital projects in the current

plan will be $1.4 billion for revenu e producing projects, $1 b il lion for mandated projects, $1.1 billion for

state of good repair projects, $282 million for security, $5 68 million for system enhancing projects and

$ 48 million for regional programs

. In addition, the capital budget includes $172 milli on for certain

provisions and contingency to enable projects to be either accelerated or delayed depending upon our

projections and forecasts. The charts below show the planned capital expenditures in these categories

as well as by the different lines of business. $338 $795

($401) ($116) ($108) ($171) ($183) $154 $385 $893

($379) ($111) ($94)

($467) ($140) $87



## ($600) ($450) ($300) ($150) $0 $150 $300 $450 $600 $750 $900 Port Authority of New York & New Jersey Comparison of 2014 and 2013 Budget Net Income/(Loss) From Operations (in millions)

Airports Bridges &

Tunnels PATH Bus

Terminal/Station Ports World Trade Regional,

Ferries &

Other Total

2013 Budget 2014 Budget

### State of Good

Repair

24% System
Enhancing

13% Revenue
Producing

31% Security

6%

Mandatory

25%

Regional

1% 

## 2014 CAPITAL EXPENDITURES BY CATEGORY

$4.4 BILLION

Aviation

13% Development

0.5%

PATH

4% Port

Commerce

4% Tunels

Bridges &

Terminals

19% Agency

Provisions

4% Regional

1%

World Trade

Center Site

55% 

## 2014 CAPITAL EXPENDITURES BY DEPARTMENT

$4.4 BILLION

### 20 14 Ca pital Plan Major Projects

The 2014 capital plan reflects a number of critical initiatives at the Port Authority’s ports, airports,

PATH sy stem, tu nn els

, bridges and te rmi na ls and the Wo rl d Trade Center

. Some of the maj or

project s and spending i nc luded are as fo ll ow s:

Aviation - $55 9 million capital budget includes :

• $241 million

-- Airport Runway and Taxiway Reconstruction

• $125 million

-- Airport Terminal Development and Modernization

• $ 46 million

-- Security Improvements to P rotect Terminal Frontage

Interstate Transportation - $994 million :

Tunnels, Bridges & Terminals - $ 813 million capital budget includes:

• $246 million

-- Lincoln Tunnel Access Infrastructure Enhancements

• $234 million

-- Bayonne Bridge Navigational Clearance Program

• $ 52 million

-- George Washington Bridge Bus Station Development

• $ 51 million

-- Goethals Bridge Modernization

• $ 26 million

-- George Washington Bridge Upper Level Structural Steel

Port Authority Trans

- Hudson (PATH) - $ 181 million capital b udget includes :

• $ 38 million

-- PATH Safety and Security Projects

• $ 31 million

-- PATH Station and Modernization Program

Port Commerce - $213 million capital budget includes :

• $ 79 million

-- Port Jersey Development

• $ 63 million

-- Infrastructure Improvements including Berths and Wharfs

• $ 51 million

-- Greenville Yards

World Trade Center Redevelopment - $2.4 billion capital budget includes :

• $709 million

-- World Trade Center Site

• $666 million

-- One World Trade Center

• $552 million

-- Transportation Hub

• $400 million

-- Retail Redevelopment

### Capital Financing and Debt Management

The Port Authority relies on its strong credit rating and access to the capital markets in order to finance its

long

- term investments in its transportation and infrastructure network. The Port Authority currently has

approximately $19.5 billion in total bonded debt outstanding. In 2013, the Port Authority issued

approximately $ 1.9 billion in debt partially to refund approximately $1.3 billion in debt outstanding. Much

of the debt has been executed at attractive rates given a historically low interest rate market environment,

demonstrating the continued support of investors in the Port Authority. In 2014, debt service costs are

expected to increase due to higher levels of borrowing, with approximately $9 20 million of operating debt

service, and $1.3 billion in total debt service when capitalized interest from ongoing construction projects

are included.

The debt service spikes in 2019, 2024 and 2029 shown in the graph below are the result of issuing

taxable consolidated debt during the depths of the economic recession under extremely unfavorable bond

market conditions. To mitigate these spikes, the 2013 bond refundings were structured to generate

savings on an aggregate basis while reducing debt service in those years.

The Port Authority monitors the capital markets in terms of swings and developments closely as they

affect our ability, and the cost at which, we can finance our programs. While we have successfully

ac cessed historically low interest

- rate financing for the last two years, the low rate, post

- recessionary

market has also negatively impacted the Port Authority in that we have earned lower interest income from

our cash reserve balances than before, and the appetite for certain variable rate and structured debt

instruments has eroded.

$1,283 $1,320 $1,320

$700 $900 $1,100 $1,300 $1,50020132014201520162017201820192020202120222023202420252026202720282029203020312032203320342035 

### Actual Debt Service on Current Outstanding Bonds

($ in millions)

### Staffing

Seventy percent of Port Authority staff, in the functional areas of operations, security and maintenance,

are represented by unions through the collective bargaining process. The remaining non

- represented

staff consists of engineering, technical, and management workforce. Port Authority staffing levels for

2014 increases by 201 permanently authorized positions to 6,978. The entire increase is in the area of

Public Safety and related to the new AARF coverage required and the associated rescue training.

Otherwise, the Port Authority continues to be vigilant in restructuring staff functions, streamlining

operations, leveraging technology, and reallocating positions to priority projects.

Police Staffing - Safety and Security Continues to be a Top Police Priority

In furtherance of the establishment of a new security department, the Office of the Chief Security Officer

(CSO) organizational structure will centralize and enhance existing security and public safety functions,

programs, resources and personnel to include the Port Authority Police Department, WTC Security, the

Office of Emergency Management, Security Project Management Department, as well as Lin e

Department security management. In addition to the consolidation of existing security functions, the CSO

is instituting new security management disciplines, including critical infrastructure protection, security

policy and planning, intelligence, quality assurance and inspections, cyber security, and security

technology and communications. Under this new structure, the Port Authority’s security and safety

posture will be further enhanced through consistency and collaboration across the agency’s business

l ines. Staff Services

16%

Operation

Services

6%

Engineering

8%

Police

26% Operating Line

Departments

44% 

## 2014 STAFFING LEVELS

### The Federal Aviation Administration (FAA) issued a memorandum to the Port Authority mand ating a list of

reforms to the Aircraft Rescue and Fire Fighting (ARFF) function at our airports, including the formation of

a new unit solely responsible for A RFF. Under our existing model of providing ARFF support at our

airports, efficiencies are realized by the Port Authority Police performing dual roles in both police and

ARFF functions. We anticipate redeploying approximately 280 officers from patrol to solely staff the ARFF

cadre at the airports (excluding Stewart and Atlantic City Airports).

The proposed 2014 Budget includes provision for a new recruit class to replenish the officers in the Public

Safety Police Department who will be redeployed to the ARFF cadre as well as adequately provide

security coverage at the World Trade Center as it transitions from a construction site to a fully operational

campus

. As security concerns have risen since 9/11, so has the police force increased. Since then, the

ag ency has maintained a police force of over 1,600 uniformed officers. However, with the reforms

related to ARFF as noted above, the number of uniformed officers in 2014 will rise to 1,835, an increase

of 201 positions.

1,330 1,395 1,395 1,417 1,418 1,660 1,660 1,660 1,660 1,634 1,634 1,634 1,634 1,835

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 

# Police Staffing

Years

### Maintaining Non

- Police Staff ing Levels

Non

- police staffing levels for 2014 remains constant at 5,143. Our ability to maintain our non

- police staff

levels flat is the culmination of a cost containment effort that began in 2004 and has been able to reduce

the number of non

- police, mos tly professional and managerial positions, by 707 positions or by 12% of

the non

- police workforce. These reductions resulted from process improvements such as streamlining

operations, reducing administration through automation and leveraging technology, restructuring staff

functions. We are carrying that effort through our current Continuous Improvement program, where we

are generating costs savings in targeted areas to provide for the reallocations of resources to priority

projects and initiatives

. The agency has also reallocated resources to priority projects, such as the PATH

modernization program and World Trade Center redevelopment and key

- to

- key operational needs to help

meet new overtime reduction targets. The following chart shows the decline in n on

- police staffing levels:

Government Finance Officers Association

The 2014 budget process and budget book has been developed , as in previous years, in accordance with

standards promulgated for governmental entities by the Government Finance Officers Association’s

(GFOA) for preparing high quality budgets. The Port Authority has been consistently recognized by the

GFOA for its distinguished budget presentations and ongoing commitment to ensuring public

transparency and adherence to the highest govern mental accountability and standards. 5,863 5,840 5,839 5,850 5,776

5,521 5,468 5,467 5,467 5,343

5,143 5,143 5,143 5,143

4,600 4,800 5,000 5,200 5,400 5,600 5,800 6,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 

# Non - Police Staffing

Years

# 2014 Budget Summary by Line Department

February 19, 2014

# 2014 Budget Summary by Line Department

AVIATION

February 19, 2014

### 2014 BUDGET SUMMARY BY LINE DEPARTMENT

AVIATION

Mission

Aviation’s mission aligns with the Port Authority’s at large, recognizing and accepting its charge to

achieve regional prosperity through a unified system of airport facilities that has unsurpassed capacity

and quality and that moves people and goods through its five airports as efficiently as possible, with a

commitment to safety, security, customer service, environmental sustainability, and community

involvement

.

Facilities

 John F. Kennedy International Airport (JFK)

 LaGuardia Airport (LGA)

 Newark Liberty International Airport (EWR)

 Stewart International Airport (SWF)

 Teterboro Airport (TEB)

Core Functions

Aviation manages five airport facilities within the region that serve as vital gateways to the world. In

addition, under a management agreement entered into in 2013, the Port Authority is providing general

management services to the South Jersey Transportation Authority (SJTA) in connection with Atlantic City

International Airport (ACY). The se facilities provide a global connection for passengers and cargo,

generating approximately 5% of regional GDP in 2012. As a steward of this regional impact, the Aviation

Department strives to realize its vision of being the unsurpassed regional, national and global gateway for

passengers and cargo. These efforts result in agency earnings, regional economic activity in the form of

jobs, wages and sales, and direct financial investment in local communities in support of agency

initiatives. The combined impact of Aviation operations, capital spending, and tourism resulted in 511,000

jobs, $26 billion in wages, and $71.9 billion in sales in 2012.

The Aviation Department’s core functions include:

• Developing, managing, and maintaining passenger terminals, runways, and cargo facilities in

compliance with FAA regulatory standards

• Negotiating agreements and handling tenant relationships with airlines that rent passenger

terminal gates, hangars, and cargo space, as well as retail merchants and concession

agreements

• Supervising outsourced contract services for various operational and maintenance activities

• Managing security and coordinating with the Transportation Security Administration (“TSA”)

### Activity Levels

In 2014, approximately 114.2 million people are projected to use the Port Authority’s aviation facilities

compared to the revised estimate of 111.3 million in 2013. The anticipated increase in 2014 passenger

levels is approximately 2.9 million, or 2.6%, and 2.8 million or 2.5% higher than the projection of 111.4

million passengers stated in the 2013 budget. The U.S. economy is expected to grow at a slightly

stronger pace than it did in 2013, and international economic growth, especially in Europe, is anticipated.

Domestic passengers are anticipated to increase by 1.2 million, or 1.6%, while international passenger

activity is expected to increase by 1.6 million, or 4.3%.

Staffing

Aviation has 1,217 staff, of which 782 (64%) are dedicated to operating, maintaining and managing the

airports.

Operations (289)

O perations staff at JFK (110), EWR (108), LGA (63), SWF (5) and TEB (3) operate and manage the

aeronautical, landside, security and customer care functions, including compliance with Federal Aviation

Administration rules and regulations.

Maintenance (493)

The maintenance staff at JFK (198), EWR (164), LGA (131) provide craft

- based maintenance programs to

ensure that the structural integrity of the facilities’ assets, infrastructure and equipment are operating at a

high level of performance, including code and regulatory compliance.

Management Services (151)

The remaining management services staff (151) provide the functions that support the facilities and line

business operations, including capital program delivery; asset management; property and revenue

management; strategic, business planning and financial functions; airspace modernization; security and

environmental management; as well as facility management and departmental oversight.

Security - Airport Rescue and Fire Fighting (ARFF) (284)

Operators of Part 139 Airports must provide Aircraft Rescue and Fire Fighting (ARFF) services during air

carrier operations that require a Part 139 certificate.

Revenues and Expenses

Aviation’s 2014 projected revenues of $2.4 billion are up $79 million from the 2013 budget mainly due to

higher ARFF recovery fees. Significant revenue sources include fixed rentals from leases for airline

terminals, hangars and cargo facilities, concessions and aircraft services; flight fees from cost recovery

agreements with airlines; fees and charges, such as the AirTrain’s farebox revenues, utilities and fuel

fees; and other airport activities such as parking.

### 2012 2013 2013 2014

Revenues By Category (In thousands) 

### Actual Budget Estimate Budget

Fixed Rent $719,045 $737,867 $695,999 $725,294

Percentage & Other Rentals 587,004 596,856 626,444 609,675
Flight Fees 633,018 671,605 657,944 737,701
Parking 214,196 218,524 226,523 235,213

Other 122,755 116,073 118,641 111,578

Total $2,276,018 $2,340,925 $2,325,551 $2,419,462

Operating expenses total $1.5 billion. Expenses for the Aviation department in the 2014 budget total $1.4

billion, including payroll, technology services, rent, contract services, and utilities. Allocated and Other

expense total $179 million. Aviation has significantly cut costs over the last several years by lowering

energy expenditures, consolidating contracts, mothballing/demolishing vacant buildings, using resources

more efficiently, and reducing fees paid. However, the savings associated with these activities no longer

offset the necessary contractual and inflationary increases, as well as significant anticipated increases in

Aircraft Fire Fighting and Rescue expenses. Flight Fees

30% Fixed Rent

30% Percentage

& Other

Rentals

25%

Parking

10%

Other

5% 

## Aviation 2014 Revenue by Categories

### 2012 2013 2013 2014

Operating Expenses by Category (In thousands) 

### Actual Budget Estimate Budget

Operations $427,449 $431,499 $431,026 $433,602
Security 231,435 237,442 251,896 308,429

Maintenance 197,513 218,788 218,087 212,977
Management Services 63,314 75,633 69,000 70,670

Rent 240,966 240,029 240,421 240,405
Debt Management 108,163 103,186 103,587 98,141

Sub

- total Operating & Maintenance 1,268,838 1,306,577 1,314,017 1,364,224

Allocated & Other 141,235 151,676 170,669 178,916

Total Operating Expenses $1,410,073 $1,458,253 $1,484,686 1,543,140

2014 Capital Budget Overview

The 2014 Aviation capital budget provides for $559 million in expenditures. A total of $ 234 million , will be

used to maintain the agency’s airport assets in a state of good repair. A large part of the capital budget

will also be dedicated to enhance overall system capacity and security, $ 82 million and $46 million,

respectively. The 2014 capital priorities focus on addressing current challenges that include aging

infrastructure, safety and security, congestion/delays and federal caps on flights per hour imposed by the

FAA, and customer expectations. Management

Services

5% Maintenance

16% Operations

32% Rent

18%

Security

22%

Debt Expense

7% 

### Aviation 2014 Operating & Maintenance Expenses

### 2014 Capital Budget Highlights

Project Description/Purpose 2014 Budget Operational Impacts

1 JFK Runway 4L

- 22R

Reconstruction Finalize design, property acquisition, and finalize construction staging to minimize operational impacts $28 M Lower pavement maintenance costs, enhanced system capacity, reduced delays, accommodation of larger (Group VI) aircraft.

2 EWR Rehabilitation of Runway 4L

- 22R Rehabilitate the runway and construct three (3) multi

- entrance taxiways and one crossover taxiway $28 M Restores runway to a state

- of

good

- repair.

3 LGA Redevelopment Planning Upgrade airside and landside infrastructure (including central electrical substation and CHRP replacement to accommodate projected passenger demand $12 M Improved customer service and accommodation of projected passenger growth.

4 LGA East End Substation (EES) Construct foundation and site utilities for the

new EES to be housed in a 3

- story structure including 27KV and 5KV switchgears powered by six (6) 27KV Con Edison feeders to provide

24MVA. $18 M Replaces obsolete central substation, spreads electrical

loads to the east side of the airport, enhances electrical power distribution within the facility.

5 SWF Rehabilitation of Runways 9

- 27 and 16

- 34 A full depth rehabilitation of runways 9

- 27 and

16

- 34 including shoulders, drains and electrical systems. $31 M Restores runways to a state of good repair. 

## Mandatory

16%

Revenue

Producing

20%

Security

8% State of Good

Repair

41% 

## System

Enhancing

15% 

# 2014 AVIATION CAPITAL BUDGET

# 2014 Budget Summary by Line Department

February 19, 2014 

# TUNNELS,

BRIDGES

AND

TERMINALS

### TUNNELS, BRIDGES& TERMINALS (TB&T)

Mission

The TB&T mission is to connect the road networks of New York and New Jersey with tunnels, bridges

and bus terminals that permit people and goods to move safely, efficiently and conveniently. TB&T does

this by: operating facilities that are safe, secure, reliable, well maintained and easy to use; providing

service levels that instill customer confidence and satisfaction; coordinating with other agencies to ensure

integrated transportation systems; and improving traffic flow, efficiency and travel reliability through

technology and new work practices thereby strengthening the region’s economic competitiveness.

Facilities

 Bayonne Bridge

 Goethals Bridge

 George Washington Bridge (GWB)

 George Washington Bridge Bus Stat ion (GWBBS)

 Holland Tunnel

 Lincoln Tunnel

 Outerbridge Crossing

 Port Authority Bus Terminal (PABT)

Core Functions

TB&T manages and maintains six interstate vehicular crossings and two interstate bus terminals that are

at the foundation of the transportation network that drives the economic engine of the New York & New

Jersey region. These facilities serve as the critical links, combined with PATH, in the Interstate

Transportation Network that unifies the economies of the two states into a single world

- class economic

center, and fosters a quality of life and competitive cost of doing business that sets the region apart.

TB&T’s core functions include:

 Manage the Port Authority Bus Terminal (PABT), the world’s busiest bus terminal, which

accommodates approximately 250,000 passenger trips and 8,000 bus moments on its nearly 200

loading positions on a typical weekday. Operating the Terminal requires maintaining aging structures,

cleaning heavily

- used public spaces, providing customer service to the passengers, coordinating the

operations of dozens of individual bus carriers while managing general traffic, and administering the

agreements with the bus carriers.

 Operate and maintain four long span bridges and two trans

- Hudson tunnels that accommodated

approximately 232 million car, bus, and truck trips in 2012, serving as a critical links for the movement

of people and goods within the region.

 Design and deliver a robust capital program to enhance safety and security across TB&T facilities;

rehabilitate assets to extend useful life; and replace assets and systems beyond their useful life; and

modernize infrastructure to address safety, mobility, and service quality objectives.

###  Provide for continuous toll collection services including providing for round the clock cash collection

operations and a complex electronic toll collection system requiring regular monitoring and

maintenance.

Activity Levels

TB&T’s facilities are expected to handle 116.3 million eastbound vehicles in 2014. Relative to 2013

traffic, this represents a decrease in traffic of 1.0 million vehicles, or 0.8% due to structural changes to the

regional economy since the Great Recession, coupled with other factors including changes in attitudes to

driving and mode choice, how goods move between New York and New Jersey, increasing toll rates and

gas price volatility, closures for Pulaski Skyway construction, and the continued sluggish economy. Auto

traffic is projected to decrease by 800,000, or 0.8%, bus traffic to in crease by 50,000, or 1.7% and truck

traffic is expected to decrease by 0.2 million or 3.0%

. Looking ahead, TB&T anticipates moderate growth

in long

- term traffic volumes.

Staffing

TB&T has a total of 873 staff, of which 785 (90%) are dedicated to facilit y- based management,

operations, and maintenance.

Operations (521)

Facility management has staff at GWB (126), Holland Tunnel (127), Lincoln Tunnel (135), PABT (48),

Staten Island Bridges (77) and department wide operations (8) who direct operations and m aintenance

staff responsible for toll collection, traffic management, incident and emergency response, bus and

passenger operations at bus terminals, and preventative maintenance and construction programs that

ensure integrity of assets, infrastructure and equipment, as well as code and regulatory compliance.

Maintenance (265)

Maintenance staff at GWB (45), Holland Tunnel (67), Lincoln Tunnel (69), PABT (50) and Staten Island

Bridges (34) provide daily maintenance activities at the facilities including preventative maintenance,

critical emergency response and capital maintenance support. The routine maintenance includes general

maintenance of the structure, including plumbing, electrical requirements, paving condition response,

building maintenance, and general condition repairs in the course of our operations. Positions in this

category include Structural Mechanics, Electricians, Plumbers, General Maintainers, and Watch

Engineers to safeguard ou r facilities.

Management (87)

TB&T employs 87 management services staff responsible for managing business programs and facility

support functions including capital program delivery; asset management; development programs at

facilities and department properties; operations, transportation and business planning; financial services

and analysis; revenue program management including the operations and maintenance of the toll

### collection system and customer service contracts; a variety of operating and maintenance agreements;

and department

- wide administrative services.

Revenues and Expenses

TB&T forecasts 2014 revenues of $1.5 billion, 96% of which consists of projected toll revenues from the

bridge and tunnel crossings, along with rentals from the bus terminals, advertising and parking revenues.

2012 2013 2013 2014

Revenues By Category (In thousands) 

### Actual Budget Estimate Budget

Rentals $38,571 $40,401 $42,307 $44,019

Tolls 1,210,955 1,341,232 1,320,233 1,430,068
Parking 8,323 9,651 9,851 10,353

Other 275

- 26

-
Total $1,258,125 $1,391,285 $1,372,417 $1,484,441

Operating expenses total $491 million. TB&T’s tota l 2014 operating expense is $399 .2 million, including

$156.9 million toward operations, $120 .4 million f or security and policing and $84.7 million for

maintenance. Allocated and Other expenses total $92 million. The total expenses are allocated as

follows: Tolls

96% Rentals

3%

Parking

1% 

### TB&T 2014 Revenue by Categories

### 2012 2013 2013 2014

Operating Expenses by Category (In thousands) 

### Actual Budget Estimate Budget

Operations $158,183 $145,252 $155,544 $157,149
Security 121,515 117,412 124,939 120,409

Maintenance 76,192 86,016 87,068 84,719
Management Services 25,488 31,305 29,979 35,647

Rent 1,293 1,447 1,275 1,236

Sub

- total Operating & Maintenance 382,671 381,431 398,805 399,159

Allocated & Other 85,591 91,627 94,084 92,141

Total Operating Expenses $468,262 $473,058 $492,889 $491,300

2014 Capital Budget Overview

The 2014 TB&T capital program provides for expenditures totaling $813 million, $488 million, which is

geared toward rehabilitating and maintaining the facilities in a state of good repair, which also funds

portions of the Lincoln Tunnel Access projects such as Pulaski Skyway. The major System Enhancing

project is the Bayonne Bridge Navigational Clearance Projec t with a $234 million budget. Management

Services

9% Maintenance

21% Operations

39% Rent

1%

Security

30% 

### TB&T 2014 Operating & Maintenance Expenses

### 2014 Capital Budget Highlights

Project Description 2014 Budget Operational Impacts

1 Bayonne Bridge Navigational Clearance Project (BBNCP) The BBNCP raises the existing air draft

clearance to 215 feet from the current 151 feet and includes replacement of the existing main span deck, suspender ropes, both the NY and NJ approach structures and access ramps as well as limited necessary strengthening of the Arch structure. The project is also allows for future Mass Transit options. $234 M Single lane operation during construction; hard barriers to be completed by January

2014.

2 Lincoln Tunnel

Access: Pulaski Skyway Infrastructure This project consists of the design and construction of improvements to the existing bridge structure and approaches, including replacement of the entire concrete deck of the bridge and ramp structures, repairing/replacing all deteriorated

structural steel memb ers and connections, repainting after the existing lead paint is removed, rehabilitating/replacing the

substructure and other elements of the bridge such as safety, security, lighting and intelligent transportation systems as needed. The work also includes retrofitting

the structure to withstand seismic loads. $181 M Scheduled In

- bound closure of the Pulaski Skyway to take place on 3/1/14.

3 Lincoln Tunnel

Access: Route 7 Wittpenn Bridge

Infrastructure This project consists of the replacement of the Route 7 Wittpenn Bridge over the Hackensack River and the realignment of

Fish House Road on the west side of the river. The new bridge will be located north of the existing bridge. The existing Wittpenn Bridge is a vertical lift bridge with 35 feet of clearance in the closed position. The new Wittpenn Bridge will be a vertical lift bridge

with a minimum vertical clearance of 70 feet above Mean High Water in the closed position. The replacement of the exi sting $60 M Contract 3A work is scheduled to start construction by 3 rd quarter 2014.

Cont ract 4 work is scheduled to start design by 1 st quarter 2014. 

## System

Enhancing

30%

Security

4%

Revenue

Producing

7% Mandatory

0% State of Good

Repair

59% 

# 2014 TB&T CAPITAL BUDGETbridge has been designed to address the major needs and goals of the project which

are: Replacement of the structurally deficient bridge, meet current design criteria and improve traffic operation and safety, improve regional traffic flow, increase

vertical clearance over the Hackensack River in the closed position to reduce vehicular and marine traffic conflicts, and

reduce maintenance costs and traffic disruptions.

4 Goethals Bridge

Modernization The program scope of work includes the replacement of the existing Goethals Bridge in its entirety with a new 900

- ft cable stayed bridge and approach viaducts. The development, design, construction, financing, and maintenance over a 35

- year period will be undertaken by the selected developer. The Authority will retain ownership and responsibility for toll operations. The new roadway will include the following components: Six 12

- ft wide lanes (three lanes in each direction), a 12

- ft
wide outer shoulder in each direction, a 5

- ft wide inner shoulder in each direction, a 10

- ft wide bikeway/walkway along the northern edge of the westbound roadway, and a

corridor to accommodate future mass

transit. $51 M Complete ROW acquisitions for NJ properties by 1 st quarter 2014, and for NY properties by

2 nd quarter 2014.

Construction (NTP 2) is scheduled to begin in

the 1 st quarter of 2014.

5 GWB Bus Station Redevelopment The redevelopment initiative is a bus station modernization and retail development project at the GWBBS valued at approximately $180 million. The public private project includes modernization of bus operations on the upper level of the existing GWBBS, as well as retail development of approximately 120,000 SF that will provide a revenue stream for the Agency. $51 M Commence construction early 1 st quarter 2014. Schedule dates are soft targets on this project and fully dependent on satisfactory resolution of all design and business issues.

6 GWB Upper Level

Structural Steel

Rehabilitation Provide for the rehabilitation of the structural steel of the Upper Level roadway deck and support structure, to maintain structural integrity and state of good repair. The main focus of this project will be replacing six

- foot sections of deteriorating deck adjacent to the deck joints with a modified deck system that will extend the useful life of the deck 15 to 20 years. $26 M Installation of the 632 structural deck panels and finger joint rehabilitation is scheduled for completion in the 1 st quarter 2014.

# 2014 Budget Summary by Line Department

February 19, 2014 

# PORT

AUTHORITY

TRANSHUDSON

(PATH)

### PORT AUTHORITY TRANS

- HUDSON ( PATH )

Mission

PATH’s mission is guided by the Port Authority’s goals to excel in the delivery of a safe, reliable, and

cost

- effective transportation service that operates as a critical link in the regional transportation network

PATH contributes to regional mobility and economic development and serves as a steward of the regional

environment by providing efficient mass transit service and effectively managing energy resources.

Facilities

 PATH Rail Transit System

Stations in New York Stations in New Jersey

9 th 

### Street Exchange Place

14 th 

### Street Grove Street

23 rd 

### Street Harrison

33 rd 

### Street Hoboken

Christopher Street Journal Square

World Trade Center Newark Penn Station

Newport

 Journal Square Transportation Center

Core Functions

Port Authority Trans

- Hudson (PATH) operates and maintains a rapid transit railroad serving Newark

,
Harrison

, Hoboken and Jersey City in metropolitan northern New Jersey and Manhattan in New York City

. PATH trains run 24 hours a day, seven days a week – one of the few 24

- hour systems in the world.

Since the early 20th Century, PATH and its predecessor, the Hudson & Manhattan Railroad, have carried

passengers between New Jersey and points in Midtown and Lower Manhattan, serving as a key link in

the region’s transportation network and as a catalyst for continued residential, commercial and

employment growth. PATH’s core functions include:

 Operating and Maintaining a Rail Transit System and Bus Transportation Terminal

 Compliance with federal safety and environmental rules and regulations

 Continue to improve service and address customer demands

 Ensuring Sustainability/Environmental Enhancements

### Activity Levels

PATH ridership is expected to be 78.8 million passenger trips in 2014. This represents an decrease of

3.1 million passengers, or 3.8% below the 2013 budget. The projected decrease is due to changes in

commuting patterns after Superstorm Sandy combined with scheduled weekend closures for system

repairs. Significant ridership growth is projected for the 2016

- 2020 period because of the build

- out of

the WTC area in Lower Manhattan and the phasing in of a number of large development projects in the

region. The close proximity of PATH’s stations to many of these development projects will stimulate

considerable ridership demand in the long

- term.

Staffing

PATH has a staff of 1,073 permanent employees, of which 1,013 (94%) are dedicated to operating and

maintaining a full service rail transit system and bus terminal.

Operations (423)

The operations staff operate and manage the dispatching and movement of trains in and out of the

stations and yards, develop and maintain train schedules, and provide passenger information and

customer care programs throughout the stations, including compliance with Federal Railroad

Administration rules and regulations.

Maintenance (590)

The maintenance staff includes Car Equipment (207), Way and Structures (214) and Power, Signals and

communication (169). These Divisions ensure that the railcars are inspected and repaired to provide for

a reliable performance; maintain and replace track, station structures and operating equipment; and

service the signals, power distribution and communications equipment systems to ensure safe, reliable

and efficient train movement.

Management (60)

The remaining management services staff provide the functions that support the facilities and line

business operations, including capital program delivery; asset management; rail operations planning;

property and revenue management; strategic business planning and financial functions; security and

environmental management; and facility management and departmental oversight.

Revenues and Expenses

PATH projects 2014 gross revenues to reach $179 million, which is a $13 million increase over the 2013

budget . This increase in gross revenues is attributable to a projected $12 million increase in fare

revenues due primarily to the impact of the 2013 and 2014 scheduled fare increases. Non

- fare revenues

are expected to increase by approximately $1 .0 million mai nly in rentals for additional planned advertising

revenues.

### 2012 2013 2013 2014

Revenues By Category (In thousands) 

### Actual Budget Estimate Budget

Rentals $6,721 $6,214 $6,858 $7,181

Fares 126,028 157,590 142,584 169,583
Parking 1,237 949 1,300 1,326

Other 667 550 496 540

Total $134,654 $165,303 $151,238 $178,630

Operating expenses total $330 million. The PATH operating expense budget for 2014 is $2 59 million,

which represents a $10. 9 million increase from PATH’s 2013 operating budget. A total of $110 million will

be devoted to PATH operations, $77 million to maintenance and $52 million to security and policing costs.

Allocated and Other expenses total $71.5 million

. Fares

95% Percentage &

Other

Rentals

4%

Parking

1% 

## PATH 2014 Revenue by Categories

Management

Services

7% Maintenance

30% Operations

42% Rent

0.5%

Security

20% 

## PATH 2014 Operating & Maintenance Expenses

### 2012 2013 2013 2014

Operating Expenses by Category (In thousands) 

### Actual Budget Estimate Budget

Operations $124,652 $101,428 $120,851 $110,214
Security 55,110 56,073 54,795 51,817

Maintenance 65,999 73,602 53,845 76,756
Management Services 17,333 15,536 16,027 18,598

Rent 1,105 984 1,064 1,143

Sub

- total Operating & Maintenance 264,199 247,623 246,582 258,528

Allocated & Other 65,736 69,149 70,026 71,506

Total Operating Expenses $329,935 $316,772 $316,608 $330,034

2014 Capital Overview

The 2014 PATH capital budget provides for a total of $181 million in expenditures. A large portion of the

expenditures contributes towards post

- Sandy recovery and resiliency efforts as well as continuation of the

PATH modernization program. The total impact of Superstorm Sandy continues to grow in magnitude as

the longer term effects manifest themselves. PATH has completed an assessment of the storm damages

and financial implications and developed a comprehensive list of capital projects that need to be

completed to restore the system and provide future storm related resiliency. In addition, capital work

continues on the PATH Modernization Program including work implementing a new signal system,

upgrading PATH stations and ongoing state of good repair work on PATH’s aging infrastructure.

System Enhancing

19%

Security

21% State of Good Repair

60% 

# 2014 PATH CAPITAL BUDGET

### 2014 Capital Budge t Highlights

Project Purpose 2014 Budget Operational Impacts

1 State of Good Repair Program Ensure the integrity of the infrastructure by maintaining the functionality of PATH assets. $40 M Improved service reliability (e.g., on

- time performance). New, upgraded, and well

- maintained tracks, communications equipment, and facilities to ensure service reliability and safety. Minimize service disruptions by maintaining railcars, substations and support

structures.

2 Safety and Security Projects Enhan ce system access control and overall operational safety to protect

the PATH infrastructure

. $39 M Safe and effective operation of entire system.

3 Signal System Replacement Program Replace outdated current signal system with a modern computerized
system and Positive train Control (PTC). $38 M Increased capacity to meet growing ridership demand. The signal system will provide the capability to increase the system capacity by approximately 20% by permitting trains to run safely in close proximity to one a nother.

4 Station Improvements Enhance safety and quality as well as increase passenger capacity. $33 M Improved customer safety and service through increased capacity by extending platforms, allowing for longer trains and increased capacity to meet the anticipated future demands for passenger growth.

5 Substation Upgrades Improve reliability and maintain substation equipment by upgrading and replacing aging equipment. $18 M Enhanced reliability, maintainability, security and quality of

service to PATH customers.

# 2014 Budget Summary by Line Department

February 19, 2014 

# PORT

COMMERCE

### P ORT COMMERCE

Mission

Port Commerce activities support the Port Authority’s mission to develop and maintain secure,

competitive port infrastructure and services for New York and New Jersey, expediting the movement of

international cargo and supporting the regional economy in a financially sound manner. Port Commerce

also aims to minimize the impact to the environment, conserve natural resources and support sustainable

growth, particularly with respect to reducing pollutant air and greenhouse gas emissions.

Facilities

 Port Newark

 Elizabeth – Port Authority Marine Terminal

 Brooklyn – Port Authority Marine Terminal

 Howland Hook Marine Terminal

 Greenville Yard
– Port Authority Marine Terminal

 Port Jersey – Port Authority Marine Terminal

 Red Hook Container Terminal

 Cross Harbor (NY/NJ Railroad)

Core Functions

The Port Commerce Department operates the Port of New York and New Jersey, the third largest

container port facility by volume in the United States. The Port is a major component of the regional

economy of the northeast United States, providing more than 280,000 direct and indirect jobs and

generating $11.6 billion in personal income, in port

- related activities to the states of New York and New

Jersey. One of the reasons for this economic activity is because shippers using the port are able to reach

20% of the U.S. population within eight hours of leaving the port footprint, and can reach 30% within 48

hours.

The department leases space to tenants in the international shipping industry including terminal

operators, warehouse operators and bulk cargo companies who process cargo. The department also

builds, improves, and maintains most of the terminals’ facilities and underlying infrastructure . This

includes much of the Port’s transportation connections, including rail and road connections to the

surrounding highways, and interstates, deep channels, berths and wharfs, etc. In addition to the provision

of rail infrastructure, the department oversees the operation of the Authority’s wholly owned subsidiary,

New York New Jersey Rail, LLC that operates the Cross Harbor rail float system.

More specifically, the department’s responsibilities include:

• Operations and maintenance of common areas, market development, security, environmental

compliance and asset management at all Port facilities

### • The leasing and administration of port property

• The planning, development, management and delivery of all capital programs related to PA port

property. This includes provision of project support and technical assistance for marine terminal

development in tenant and common areas as well as Port

- wide rail facilities and operations

• The development and implementation of environmental policy and initiatives; and

• Promotion of port as premier destination for cargo including Beneficial Cargo Owner (BCO) outreach

and liaise with all major ocean c arriers

Activity Levels

The 2013 estimate is an anticipated decrease of 0.3 million containers, or 8.3 %, from the 2013 Budget

which has been updated to reflect activity that was lower than forecast for 2013. In 2014, the agency's

port facilities are projected to handle 3. 4 million containers. This is an anticipated increase of 130,000

containers, or 4 % . Auto Activity is expected to be lower in 2014 by 100,000, or 19.3%

, mainly due to the

loss of a major auto tenant.

Staffing

Port Commerce has a total of 169 permanent positions, of which 104 are dedicated to operating and

maintaining the marine terminals and port system.

Operations (27)

The operations staffs at the NJ Marine Terminals (21) and NY Marine Terminals (6) are dedicated to

ensuring that the marine terminals’ berths, waterways, roadways, rail facilities, multi

- tenant properties,

and common utilities are operated in a manner that allows for the safe and efficient movement of

international cargo to and from our facilities. The operations staff also ensures compliance with all

security regulations and preparedness for multi

- hazards.

Maintenance (77)

The maintenance staffs at the NJ Marine Terminals (56) and NY Marine Terminals (21) are dedicated to

maintaining the marine terminals and port system and ensuring compliance with applicable codes and

regulations.

Management (65)

The remaining staff are management and clerical employees who support the facilities including capital

program delivery; asset management; terminal properties and waterways management; cargo and

revenue management; strategic analysis; maintenance of industry relations; business planning and

financial functions; port security and emergency management programs; environmental programs

management; as well as facility and rail management and overall departmental oversight.

### Revenues and Expenses

Port Commerce anticipates $244 million in gross revenues in 2014, which represents a decrease of $2.3

million from the 2013 budget. 68% of these revenues consist primarily of land and building rentals related

to containers, autos, warehouse operations and bulk storage. The remaining sources of revenue are from

percentage and other rentals derived from container throughput, cost recovery of cargo facility charges

(CFCs), as well as dockage and wharfage.

2012 2013 2013 2014

Revenues By Category (In thousands) 

### Actual Budget Estimate Budget

Fixed Rent $158,314 $167,180 $164,992 $166,226

Percentage & Other Rentals 61,736 45,837 66,619 45,748
Parking 430 200 456

- Other 29,129 32,829 29,244 31,804

Total $249,609 $246,047 $261,311 $243,778

Operating expenses total $174 million. The 2014 Port Commerce operating expense budget is $ 160.8

million, $44 million wi ll be spent on operations, $34 million on maintenance and $18 million on security.

Allocared and Other expenses total $13.6 million. The total will be allocated as follows: Fixed Rent

68% Percentage

& Other

Rentals

19% Other

13% 

## Port Commerce 2014 Revenue by Categories

### 2012 2013 2013 2014

Operating Expenses by Category (In thousands) 

### Actual Budget Estimate Budget

Operations $73,836 $36,006 $62,793 $44,256
Security 22,948 17,058 18,656 17,931

Maintenance 26,995 35,917 34,456 33,615
Management Services 26,804 40,702 33,016 38,687

Rent 25,167 26,314 26,860 26,334

Sub

- total Operating & Maintenance 175,750 155,997 175,781 160,823

Allocated & Other 14,292 12,648 14,638 13,653

Total Operating Expenses $190,042 $168,645 $190,419 $174,476

2014 Capital Budget Overview

The Port Commerce 2014 capital plan of $213 million includes the necessary investments that will enable

the Port Authority to sustain port growth over the next decade. This investment includes an improved

transportation infrastructure that will alleviate truck traffic and port congestion and deepen channels and

berths, allowing for more cost

- efficient and environmentally conscious transportation of cargo. Management

Services

24% Maintenance

21% Operations

28%

Rent

16%

Security

11% 

## Port Commerce 2014 Operating & Maintenance Expenses

### 2014 Capital Budget Highlights

1 Global Terminal Development of n e w a nd existing marine $ 58 M Ongoing improvements for Global Terminal Development t erminal prop e rties. Program facilities will improve overall Port operations

w ill increase capacity f o r accom m odating and provide for more efficient cargo movement

international mar i ne cargo. through the port.

2 Greenville Yards Increases capacity for accommodating $51.5 M Facilitate and improve the movement of goods into Project international marine cargo and reduces and through the Greenville Yard. Development of congestion and pollution on the on

- dock rail facilities for Terminals located at Bayonne peninsula. Port Jersey.

3 Port Ivory Development of existing marine $3.3 M

Intermodal Terminal t erminal prop e rties. Program

w ill increase capacity f o r accom m odating

international mar i ne cargo.

4 Express Rail/Corbin Continue constr u ction of a compr e hensive rail $10 .6 M Completion of this project will increase rail
Street Intermodal Rail s y stem t h roug ho u t the Port. Posi t ions the rail capacity to 250,000 lifts hereby achieving Support Project Port to optimal l y service the mid

- w est m a rket departmen t al sustainability goals b y re d ucing the

-- - a m ar k e t tha t i s be c om i n g mor e v u l nerab le carbon foot p r int associated w ith t he transport of

because of increasing pressure from port cargo while providing increased revenues to competing ports such as Norfolk and various the PA. When t h e present inter m odal rail program Canadian p o rts. is completed by t he end of 2 0 16, an additional

50% in intermo d al rail capacity w i ll be added.

5 Berth 3 Wharf Maintain Port C o mmerce assets to ensure a $9.4 M Reduces costs associated w ith pr i ori t y and

Reconstruction state of good re p air. Ensures the long

- term emergen c y repa i r w ork in op e rati n g and capital reliability of Port Commerce and reduces d a y

- major w orks pro g rams and assur e s that assets

to

- d a y mainten a nce costs. w ill be ret u rned t o a state of good repair.

6 Port Street & Improve and e x p and capaci t y of t he port $5 M Increases s y st e m capacity a nd reduces

Brewster Road marine terminal roa d w a y s y stem. Reduces congestion and a ccidents. Average peak hour Connector Project roa d w a y conges t ion and pollution and ne t w ork

- w ide in t eraction del a y s should be improves roa d w a y safe t y

. reduced and speeds should increase b y

a pproximate l y 7 %

. 

## Mandatory

5% Revenue

Producing

58% Security

System

Enhancing

14%

State of Good

Repair

23% 

# 2014 PORT COMMERCE CAPITAL BUDGET

# 2014 Budget Summary by Line Department

February 19, 2014 

# REAL ESTATE

AND

DEVELOPMENT

### REAL ESTATE AND DEVE LOPMENT

Mission

To identify and advance strategic business initiatives that enhance the Port Authority’s financial capacity;

stimulate private investment in its facilities and host communities; promote real estate best practices;

leverage the value of Port Authority property; promote sustainable regional economic growth and

increase revenue opportunities in order to support expansion of an efficient, high quality regional

transportation system; as well as enhance the productivity of Port Authority staff via an efficient, functional

and environmentally sensitive work environment.

Faciliti es

• Bathgate Industrial Park

• Essex County Resource Recovery Facility

• Industrial Park at Elizabeth

• Newark Legal and Communications Center *

• The Teleport

• Waterfront Development

• 

### Queens West Waterfront Development

• 

### The South Waterfront at Hoboken

* The 2014 Budget provides for the phased transfer of the Newark Legal and Communications Center’s net lease.



### Core Functions

Real Estate Services oversees most of the Port Authority’s major real estate developments and other

components of its extensive real estate portfolio. The Port Authority real estate portfolio encompasses

over 12,000 acres of land and 45 million square feet of office, industrial, retail and technical space, and

includes many of the busiest and most important transportation links in the New York/New Jersey region.

Real Estate and Development’s core functions include:

• Identifying revenue enhancement opportunities, such as identifying additional advertising locations; new

or renewed retail and industrial space leasing; executing property transactions that include the sale of air

rights and easements, as well as investigating the disposition of facilities that are no longer essential to

P ort Authority operations, including the monetization of future revenue streams.

• Continuing to support development and redevelopment activities in, and surrounding, Port Authority

facilities through property acquisitions ( e.g., Bayonne Bridge Navigational Clearance Program/ Goethals

Bridge Modernization Project); agreements with private developers and local and state governments

( e.g

., George Washington Bridge Bus Station Redevelopment , PATH and the Hudson

- Rar itan Estuary

Resources Program); and the provision of real estate advisory services.

### • Reevaluating and analyzing the centralization/office consolidation of Port Authority staff in New York and

New Jersey in order to decrease the need for total office space, reduce total occupancy costs, as well as

reprogramming the space. We are currently preparing for occupancy of approximately 1,600 PA

employees at 4 World Trade Center. We had purchased and now are improving 2 Montgomery Street in

Jersey City.

• Continuing the Port Authority’s outreach to local communities in New York and New Jersey by providing

economic development expertise and tangible resources, such as surplus equipment.

Staffing

Real Estate and Development has a total of 50 staff dedicated to managing the Port Authority’s major re al

estate assets, including office space; other components of its commercial real estate portfolio and

additional programs aimed at optimizing financial return to the agency and supporting regional economic

growth.

Operations (6)

Facility staff operates the Teleport and Bathgate as well as owned buildings (e.g., Montgomery Street )

and leased space that is not the responsibility of each property owner

.

Maintenance (20)

The maintenance staff maintains th e properties and also provides supervisory oversight on multiple

maintenance contracts.

Management Services (24 )

Management support services are provided for these same properties including overseeing of rental

payments for leased space, as well as allocating these rental costs to appropriate departments . In

addition, Office Space staff are currently working to consolidate Port Authority corporate offices in 2

Montgomery Street in Jersey City and the future Port Authority headquarters at 4 World Trade Center

(WTC). During 2014, management support staff is focus ing on completing the “fit

- out” for Port Authority

offices in 4 WTC, completing improvements to 2 Montgomery Street and begin ning staff relocation to 4

WTC from various Port Authority facilities.

Rev e nues and Ex pen s es
Project ed 20 14 rev e nue s f or Rea l Estat e a nd De v elopment’ s op e rat i ng faci l ities are $ 29. 2 mi llio n, a de c re a se of

$ 2. 8 millio n compared to t he 201 3 bu dget attributed mainly to restructuring the net lease of the Newark Legal

and Communications Center

. Fixed rents are expected to generate $17.2 million in revenue and variable

electricity is targeting $11.8 million in revenue. The distribution of all revenues is shown in the chart that

follows

.

### 2012 2013 2013 2014

Revenues By Category (In thousands) 

### Actual Budget Estimate Budget

Gate/Tipping Fees $42,202 $0 $0 $0
Variable/Electricity 28,056 13,638 9,834 11,628

Fixed Rent 15,092 15,650 16,851 17,157

NLC Net Lease 2,171 2,740 2,416 403

Total $87,521 $32,028 $29,101 $29,188

Operating expenses total $18.5 million. Real Estate and Development expense budget for 2014 is $ 20

million , including $10.9 million in operations and $5.7 million for maintenance. Allocated and Other

expenses total $598 thousand. Fixed Rent

59% Variable/ Electricity

41% 

## Real Estate and Development 2014 Revenue by Categories

### 2012 2013 2013 2014

Operating Expenses by Category (In thousands) 

### Actual Budget Estimate Budget

Operations $70,477 $12,516 $9,615 $10,615
Security 1,057 992 690 747

Maintenance 1,564 2,747 2,865 3,651
Management Services 896 878 854 834

Rent 5,119 1,681 1,646 2,107

Sub

- total Operating & Maintenance 79,112 18,814 15,670 17,954

Allocated & Other 480 413 484 598

Total Operating Expenses $79,593 $19,227 $16,153 $18,552 Management

Services

5% Maintenance

20% Operations

59%

Rent

12%

Security

4% 

## Real Estate and Development 2014 Operating & Maintenance Expenses

# 2014 Budget Summary by Line Department

February 19, 2014 

# WORLD

TRADE

CENTER

### WORLD TRADE CENTER

Mission

To redevelop and operate the World Trade Center site
– a 16 acre site comprised of five commercial

office towers totaling roughly 10 million square feet, a 365,000 square foot retail facility, the National

September 11 Memorial and Museum, a performing arts center, and extensive supportive infrastructure
– to create a financially successful and physically integrated complex that anchors the revitalization of

Lower Manhattan, supports regional prosperity, enhances the Port Authority’s financial capacity, and

provides visitors, tenants, the community and the region with a safe, secure, environmentally sens itive

complex while honoring those lost on 9/11.

Core Functions

WTC core functions range from completing the design and construction of the various mega projects at

the site, including coordination with private development and governmental entities to property

management of the campus including security functions, to management of Sitewide operations,

negotiation and implementation of joint venture agreements for office and retail developments, and

financial functions including capital and operating forecasting and accounts management. The WTC

group is structured as a best

- in

- class development organization encompassing development, construction

and operational roles, while maintaining public agency priorities. To fulfill its mis sion, the WTC

departments are staffed with professionals experienced in all aspects of development including

construction, operations, property management, leasing, finance and management.

Specific functions include:

 Oversight of Master Plan components controlled by the Agency and by third parties;

 Completion of construction of key site elements, including 3 million square feet of office space in 1 WTC,

the observation deck and the antenna; construction of the 365,000

- square

- foot retail space complex; a nd

core site infrastructure.

 Business Management: implementation of complex agreements and financings between the Port

Authority and its business partners and site stakeholders including The Durst Organization (Durst),

Silverstein Properties (SPI), Westfield, and the WTC Memorial Foundation; building consensus with

external and internal stakeholders and public entities; and planning for eventual development of Tower 5

and other related assets.

 WTC Retail Development: Manage delivery of retail asset to Westfield per the terms of the recently

completed business agreements;

 Site

- Wide Operations: Physical operation and maintenance management of the entire WTC site including

management of contract with Cushman and Wakefield for property management services and oversight

of security operations for the entire site and design and development of certain facilities such as the site

wide property management office

.

### Staffing

World Trade Center employs 117 staff, of which 101, or 86% are dedicated to rebuilding the WTC Site.

Capital (1 01)

Staff dedicated to rebuilding the WTC Site manage the design guidelines, contract for and construct

capital program elements and oversee the numerous construction managers and contractors on the si te.

Management Services ( 16 )

A staff of 16 manages all real estate issues and business relationships associated with development of

the entire site.

Revenues and Expenses

World Trade Center projected revenues for 2014 are $54.6 million, which primarily consist of World Trade

Center leases, intercompany rent and rentals. Revenue estimates are based on terms of existing

agreements and amendments to existing agreements agreed to in principle.

2012 2013 2013 2014

Revenues By Category (In thousands) 

### Actual Budget Estimate Budget

WTC Leases $29,210 $29,210 $29,210 $32,651

Fixed Rent 10,907 14,284 12,689 14,562
Percentage & Other Rentals 9,860 5,190 8,451 7,397

Total $49,977 $48,684 $50,349 $54,610 Fixed Rent

27%

Percentage

& Other

Rentals

13% WT Leases

60% 

## World Trade Center 2014 Revenue by Categories

### Operating expenses total $$189.7 million. World Trade Center expenses for 2014 total $174 million,
which includes management services, maintenance, operations and security expenses during the
rebuilding of the WTC site. Allocated and Other expenses total $15.3 million.

2012 2013 2013 2014

Operating Expenses by Category (In thousands) 

### Actual Budget Estimate Budget

Operations $6,637 $18,313 $12,241 $76,637
Security 23,430 26,549 27,459 43,088

Maintenance 12,209 14,479 15,591 18,154
Management Services 12,086 11,049 18,408 17,008

Rent 16,582 15,148 11,576 19,478

Sub

- total Operating & Maintenance 70,944 85,538 85,276 174,365

Allocated & Other 11,073 11,153 13,190 15,313

Total Operating Expenses $82,017 $96,692 $98,465 $189,678

2014 Capital Budget Overview

The 2014 World Trade Center capital budget provides for expenditures totaling $2.4 billion to support the

WTC rebuilding effort and is broken down as follows : Management

Services

10% Maintenance

10% Operations

44% Rent

11%

Security

25% 

## World Trade Center 2014 Operating & Maintenance Expenses

### 201 4 Capital Budget Highlights

Project Description 2014 Budget Operational Impacts

1 One World Trade

Center Construction of signature office tower containing 3 million square feet of office space on 71 office floors, a grand public lobby, and an observation deck offering unparalleled views of the region $666 M 1 WTC will add world

- class commercial office space to the real estate market, reasserting downtown Manhattan’s preeminence as a business center while establishing a new architectural icon fo r the city.

2 WTC Transportation

Hub Construction of a new 800,000 square foot facility that will provide access to 11 subway lines, PATH, ferries, the World Trade Financial Center, retail, and a range

of amenities. $552 M The Hub will increase capacity to accommodate over 200,000 daily

commuters.

3 WTC Common

Site Infrastructure Underground parking, Chiller Plant, and

other site

- wide mechanical, electric, plumbing, and utilities; the construction of Greenwich and Fulton Streets; restaging Route 9A, security infrastructure and contingencies; and foundation excavation among other site

- wide infrastructure. $574 M Investment in the common infrastructure is required to support the massive development with significant interdependence.

4 WTC Retail Development of approximately 365,000 square feet of world

- class retail and restaurant space to be available throughout the complex. $400 M Successful retail will support revival of the Lower Manhattan economy and contribute to a healthy, well

- rounded growth in the regional economy.

5 WTC Vehicular Safety Center (VSC) and Tour Bus Parking Facility Construction of a secure screening facility of buses, trucks, and cars entering the

WTC site and its facilities. $206 M The VSC is a critical component of the site’s comprehensive police, security and operational plan.



### 1 WTC

29%

Tower 4

3% WTC Retail

16% WTC

Transportation

Hub

23% WTC Site

Infrastructure

29%

Tower 2

0% 

## 2014 WORLD TRADE CENTER CAPITAL BUDGET

# 2014 Budget Schedules

February 19, 2014

# A Reader’s Guide

The $8.2 billion 2014 Budget that will be presented to the Port Authority Board on February 19, 2014,

proposes a virtually flat increases in core expenses to pay for higher insurance costs and enhanced

security guard services at our airports – the eighth consecutive year of flat growth in operating

expenses. Beyond the 1.1% increase in core expenses, the 2014 Budget also includes incrementa l costs

associated with transitioning the World Trade Center from a construction site to a symbol of renewal

and hope reinvigorating Lower Manhattan; additional resources and restructuring of Port Authority

security forces to further fortify efforts that k eep the Port Authority’s customers, commuters, and

employees safe; and provides for infrastructure investment pivotal to the region’s stability and growth.

In line with the agency’s commitment to transparency and public accountability, the 2014 Budget

pack age provides the following budgetary and financial information:

• A budget summary of sources and uses highlighting core expense growth at well below regional

inflation; impacts of new cost areas; and $4.4 billion in planned capital spending at our airports,

tunnels, bridges, seaports, and PATH system, the largest one

- year capital budget in the agency’s

history;

• A closer look at the Port Authority’s sources of revenues by facility and major revenue category

including rentals, tolls and fares, aviation fees, a nd parking;

• A closer look at the Port Authority’s use of funds by facility and program category including

operations, security, maintenance, management services, rent, and debt expense;

• A summary of capital investment by facility that includes projects rel ated to permanent repairs

and resiliency measures resulting from Superstorm Sandy, the redevelopment of the WTC site,

major upgrades and modernization of tunnels, bridges and terminals, redevelopment of critical

port facilities, improvements to the PATH rail system to expand capacity and improve service,

and initiatives to enhance security;

• A forward look at the agency’s five years of forecasted revenues, expenses and capital

investment funding as used to develop the Agency ’s capital plan and monitor internal and

external long

- term trends; and

• The 2014 capital project listing that is geared to vitalize and expand our facilities and was

developed using a comprehensive planning process and risk

- based prioritization.

# SUMMARY OF 2014 BUDGET

(In Millions)

2013 2014 %

SOURCES: Budget Budget Variance Change

Gross Operating Revenues $4,225 $4,411 $186 4.4%

Consolidated Bond Issuances 1,360 1,550 190 14.0%

Other Sources 1,364 1,479 115 8.4%

Grants and Contributions, Insurance 457 559 102 22.3%

and Miscellaneous Revenues

Passenger Facility Charges 223 208 (15) -6.7%

Total $7,629 $8,207 $578

Significant Highlights/Challenges:

 

## Gross operating revenues are expected to increase by $186 or 4.4% due to:
- Tolls and fares increase of $101 million due to scheduled increases.
- Flight Fees increase of $66 million mainly related to Aircraft Rescue and Fire Fighting costs.
- Parking revenues increase of $18 million due to rate increases.

 

## Other Sources include proceeds available from previous bonds issuances, and capital contributions in aid of construction from third parties, and financial income.

 

## Grants and contributions, insurance and miscellaneous revenues are expected to be higher mainly for Superstorm Sandy reimbursements from the FTA for WTC and PATH

 

## Passenger Facility Charges are expected to be lower by 6.7% due to the timeline for spending on PFC eligible capital projects.

2013 2014 %

USES: Budget Budget Variance Change

Expenses (Core) $2,576 $2,605 $28 1.1%

New Expenses / Items

World Trade Center - Transition to Operations 93 93

Dedicated Aircraft Rescue and Firefighting 61 61
(Net impact after cost recoveries - $2M)

28 28

Debt Service 886 920 34 3.9%

Deferred & Other Expenses 69 113 44 63.8%

Gross Capital Expenditures 4,098 4,387 289 7.1%

Total $7,629 $8,207 $578

Significant Highlights/Challenges:

 

## Core operating expense budget remains relatively flat for the eight consecutive year reflecting a slight increase of 1.1% or $28 million, which is below inflation levels.

- Continues to invest in capacity planning for future air and bus travel demands.

- Provides investment in sustainability & conservation initiatives.

- Invests in staff succession and development programs.

- Invests in maintenance resources to ensure reliable facility systems

- Continues to support small, local, minority & women owned business.

- Provides robust customer service support at our facilities. Chief Security Office, Command Structure & Police

###  

## Includes $93 million for World Trade Center cost as it transitions to operations this year and includes:
Site management, maintenance, janitorial, utilities and security for common infrastructure and One WTC.

 

## Provides net increase of $2 million after recovery of $59 million to staff a dedicated Aircraft Rescue
and Fire Fighting cadre in support of the Federal Aviation Administration regulations for JFK, LGA EWR and Teterboro Airports.

 

## Increased authorized permanent position levels to 6,978, an increase of 201 positions to support the new Aircraft Rescue and Fire Fighting staffing structure.

 

## $652 million in security operating expenses including an increase of $28M to support an enhanced
Chief Security Office and command structure, and a new police class.

 

## The increase in Debt Service is due to higher scheduled interest and principal payments on outstanding debt.

 

## Deferred & Other Expenses provides for technology infrastructure to replace aging systems and improve efficiency through technology, building fit-out costs for 4 WTC, Aircraft Fueling trucks and vehicle replacements vital to operating and building our facilities.





## - Provides $812 million in capital investment for Tunnel Bridges and Terminals contribute to state of good repair,
roadway access, major rehabilitation of our vital crossings, and the building of new bridge structures. - $180 million investment in PATH’s modernization and Sandy recovery programs include the signal replacement,
station rehabilitation, and power station upgrade projects. - Aviation’s capital budget of $559 million advances infrastructure improvements, including new terminal development and runway/taxiway projects that support reduction in flight delays and increase airfield efficiency and capacity. - $213 million for Port Commerce facilities to increase efficiency through roadway improvements and enhance intermodal systems as well as supports initiatives that promote sustainably. - The WTCC’s $2.4 billion capital budget enables the opening of the Vehicle Security Center, activation of site wide infrastructure and opening of One World Trade Center. - Supports Regional Programs by allocating $48 million to improve transportation infrastructure
throughout the Port District. Capital spending for 2014 totals $4.4 billion. Major investments to the Region includes:

## Uses: $8.207 Billion Sources: $8.207 Billion Summary of Sources and Uses - 2014 Budget

Gross Operating

Revenues:

54% Consolidated Bond

Issuances:

19%

Other Sources:

18%

Grants and Contributions,

Insurance and

Miscellaneous

Revenues:

7% PFCs:

2%

Operating Expenses:

34% Debt Service - Operations and

Reserves:

11% Deferred & Other Expenses:

1% Capital Expenditures:

54%

# THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

(Including its related entities)


# 2014 BUDGET

(In Thousands)

Personal Materials Total

Item Services & Services Expenditures

Audit $10,877 $1,886 $12,763

Aviation 166,802 596,656 763,458 Aircraft Rescue and Fire Fighting 68,853 6,070 74,923 Chief Compliance Officer 268 130 398 Chief, Capital Planning 1,354 208 1,562

Chief Financial Officer 670 2,876 3,546 Chief Operating Officer 2,724 5,717 8,441

Chief of Public & Government Affairs 349 42 391 Chief, Real Estate & Development 2,162 569 2,731 Chief Security Officer 3,399 7,611 11,010 Rescue Training Center 11,275 2,417 13,692 Capital Security Projects 4,397 3,966 8,363 WTC Security 934 5,943 6,877 Comptroller's 11,807 572 12,379 Engineering 90,643 196,645 287,288 Capital Construction Contracts

- 784,765 784,765

Executive Offices 2,430 342 2,772 Ferry Program

- 2,272 2,272 Government and Community Affairs 2,858 1,910 4,768

Human Resources 14,783 6,693 21,476

Medical Services 2,910 1,929 4,839 Inspector General 12,989 9,166 22,155

Labor Relations 1,205 465 1,670

Law 18,735 26,866 45,601 Management and Budget 7,244 1,093 8,337 Marketing 3,864 7,714 11,578

Media Relations 2,259 217 2,476
Office of Business Diversity and Civil Rights 2,935 2,438 5,373 Office of Emergency Management 3,617 7,519 11,136 Office of Environmental & Energy Programs 2,694 2,155 4,849 Office of Financial Analysis 1,243 244 1,487 Office of the Secretary 2,376 2,088 4,464 Transparency 518 400 918

Operations Services 67,382 42,388 109,770 (1)

Planning 3,411 1,386 4,797

Port Commerce 27,893 136,117 164,010

Procurement 13,142 2,142 15,284 (1)

Project Management Office 2,151 4,671 6,822 Public Safety 393,360 37,532 430,892

Rail Transit 204,333 80,630 284,963

Real Estate & Development 8,097 117,701 125,798 (1)

Technology Services 19,509 49,487 68,996 (1)

Corporate Enterprise Systems

- 23,681 23,681 Treasury 6,080 24,187 30,267 Tunnels, Bridges & Terminals 129,615 507,009 636,624

WTC Construction 24,736 1,646,165 1,670, 901 WTC Redevelopment 5,724 391,304 397,028

Other: Amounts in Connection with Operating Asset Obligations

- 23,837 23,837 Bi-state Dredging Program

- 4,300 4,300 Debt Service - Operations

- 920,545 920,545 Debt Service - Capital

- 325,655 325,655

Insurance

- 217,981 217,981 Municipal Rents and Amounts in Lieu of Taxes

- 268,211 268,211 Port Authority Insurance Captive Entity, LLC

- 4,991 4,991 Capital Contingency

- 150,000 150,000 Capital Agency Provisions

- 22,000 22,000 Regional Programs - Operating 738 7,482 8,220 Regional Programs - Capital

- 47,592 47,592 Management of Vacancies (2,809)

- (2, 809) Special Project Bonds Debt Service

- 98,141 98,141 Total Port Authority Budget $1,362,536 $6,844,719 $8,207,255

(1) Net after charges to other dapartments

# Sources

## SOURCES
(In Millions)

2012 2013 2013 2014

Actual Budget Estimate Budget

Revenues:
Gross Operating Revenues:

Rentals $1,630 $1,643 $1,652 $1,650

Tolls and Fares 1,337 1,499 1,463 1,600

Aviation Fees 633 672 658 738
Parking 224 230 238 247

Other 232 181 180 177

Total Gross Operating Revenues 4,056 4,225 4,190 4,411

Consolidated Bond Issuances 1,506 1,360 355 1,550

Other Sources 531 1,364 1,157 1,479

Grants and Contributions, Insurance

and Miscellaneous Revenues 681 457 529 559

Allocated Passenger Facility Charges 110 223 168 208

Total Sources $6,884 $7,629 $6,399 $8,207 ($100) $400 $900 $1,400 $1,900 $2,400 $2,900 $3,400 $3,900 $4,400 $4,900

2012 Actual 2013 Budget 2013 Estimate 2014 Budget



### Total

Revenues Consolidated

Bond Issuances Other Sources PFCs, Grants and Contributions, Insurance

and Misc. Revenues

# GROSS OPERATING REVENUES BY FACILITY

(In Thousands)

2012 2013 2013 2014

Actual Budget Estimate Budget

Aviation
LaGuardia Airport $334,828 $343,936 $351,634 $372,260
John F. Kennedy International Airport 1,115,567 1,131,641 1,125,609 1,113,833
Newark Liberty International Airport 780,081 819,462 803,170 887,806
Teterboro Airport 37,100 36,967 36,776 36,964 Stewart International Airport 8,442 8,919 8,362 8,599

Total - Aviation 2,276,018 2,340,925 2,325,551 2,419,462

Tunnels, Bridges & Terminals

Holland Tunnel 157,184 174,897 168,549 175, 784

Lincoln Tunnel 196,885 224,313 210,604 228, 531
George Washington Bridge 548,486 646,091 595,445 649, 555 George Washington Bridge Bus Station 1,600 1,608 1,618 1,621
Bayonne Bridge 33,333 34,719 38,061 41,477
Goethals Bridge 151,170 133,866 165,661 180, 145 Outerbridge Crossing 132,143 134,290 150,015 162, 941
Port Authority Bus Terminal 37,324 41,500 42,466 44,387
Total - Tunnels, Bridges & Terminals 1,258,125 1,391,284 1,372,419 1,484,441

Rail
PATH Rapid Transit 130,604 160,989 146,662 173, 755
Journal Square Transportation Center 4,050 4,314 4,576 4,875

Total - Rail 134,654 165,303 151,238 178, 630

Port Commerce

Port Newark 78,928 76,439 86,317 75,508

Elizabeth - PA Marine Terminal 117,869 122,167 122,939 121, 062
Brooklyn - PA Marine Terminal 6,450 7,090 4,586 5,841

Red Hook Container Terminal 15,690 1,692 11,510 1,708

Howland Hook Marine Terminal 13,210 14,857 13,620 13,947

Greenville Yard 351 351 354 361 New York & New Jersey Rail, LLC 1,784 2,068 2,377 2,958
Port Jersey - Port Authority Marine Terminal 15,327 21,383 19,608 22,393

Total - Port Commerce 249,609 246,047 261,311 243,778

Development Essex County Resource Recovery Facility 57,110

- 1 423

PA Industrial Park at Elizabeth 1,070 1,627 1,372 1,479
Bathgate Industrial Park 4,624 4,588 4,832 4,919 Ferry Transportation Services 254 198 257 209
Teleport 14,438 16,527 12,688 14,084 Newark Legal & Communications Center 2,171 2,740 2,415 403

Hoboken Waterfront 7,840 6,008 6,952 7,038

Queens West Waterfront 268 537 841 842
Total Development 87,775 32,225 29,358 29,397

World Trade

41,474 43,679 48,217 51,845

WTC Site 2,634 5,005 2,132 2,765

WTC Retail LLC 5,869

- - -

Total World Trade 49,977 48,684 50,349 54,610

Regional & Other 0 0 208 500

Total Gross Operating Revenues $4,056,158 $4,224,468 $4,190,434 $4,410,818

## Operating Revenues by Major Category
(In Thousands)

Tunnels, Bridges Rail Port Develop- World

Total Aviation & Terminals Transit Commerce ment Trade

Rentals $1,649,596 $1,334,969 $44,019 $7,181 $211,974 $29,494 $21,959

Tolls and Fares 1,599,651

- 1,430,068 169,583

- - - Aviation Fees 737,701 737,701

- - - - - Parking 246,892 235,213 10,353 1,326

- - - Other 176,978 111,578

- 540 31,805 403 32,651

Total $4,410,818 $2,419,461 $1,484,440 $178,630 $243,779 $29,897 $54,610

Rentals - The Port Authority charges a rental fee for the use of its various facilities. There are primarily two types of rentals: Fixed Rentals, which are generated from leases; and Percentage Rentals, which are mostly generated by a percentage fee that is charged to all companies providing goods and services (mostly at our Aviation facilities).

Tolls and Fares - These revenues are a result of tolls imposed at tunnels and bridges and fares charged to passengers of the Port Authority Trans-Hudson railroad system.

Aviation Fees - These fees are based on cost recovery agreements with airlines and are calculated on the basis of direct and allocated costs of operating and maintaining public aircraft facilities and the weight of aircraft using the

runways.

Parking - The Port Authority charges an hourly or daily rate for the use of parking lots located at the airports and

bus terminals.

Other - This includes World Trade Center rent, and facility rentals related to Special Project Bonds. Rentals

37%

Tolls and Fares

36% Aviation Fees

17% Parking

6% Other

4%

# Uses

## USES
(In Millions)

2012 2013 2013 2014

Actual Budget Estimate Budget

Expenses:
Operating Expenses:
Operations $870 $776 $824 $865
Security 520 534 562 634

Maintenance 487 482 440 458
Management Services 322 347 375 388

Rent 312 309 306 319
Debt Expense (special project bond interest and
operating asset financings) 137 130 130 123
Total Expenses 2,648 2,576 2,637 2,787

Debt Service Charged to Operations & Reserves:
Interest on Bonds and Other Obligations 627 656 598 692

Debt Maturities and Retirements 224 215 204 226
Repayment of Asset Financing Obligations 17 15 16 2

Total Debt Service 868 886 817 920

Deferred & Other Expenses 40 69 45 113

Capital Expenditures: Line Departments (including PFCs) 951 1,404 1,230 1,768

World Trade Center 2,371 2,686 1,669 2,400 Regional and Capital Contingency 7 8 1 48 Agency Provisions

- - - 172 Total Gross Capital Expenditures 3,328 4,098 2,899 4,387

Total Uses $6,884 $7,629 $6,399 $8,207

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000

2012 Actual 2013 Budget 2013 Estimate 2014 Budget

Total Expenses Debt Service to Operations and Reserves Deferred & Other Expenses Gross Capital Expenditures

# EXPENSES BY FACILITY

(In Thousands)

2012 2013 2013 2014

Actual Budget Estimate Budget

Aviation
LaGuardia Airport $220,571 $235,327 $248,277 $260,801

John F. Kennedy International Airport 674,254 682,056 690,001 698,974
Newark Liberty International Airport 392,345 414,801 413,529 439,783
Teterboro Airport 22,243 18,756 21,779 27,189
Stewart International Airport 14,408 19,606 16,868 20,100

Downtown Manhattan Heli 4 21

- - PFC Program 5,035

- - -

Total - Aviation 1,328,860 $1,370,567 1,390,454 1,446,847

Tunnels, Bridges & Terminals

Holland Tunnel 62,717 66,945 71,138 71,179

Lincoln Tunnel 86,141 86,200 88,975 89,980
George Washington Bridge 103,567 99,709 112,608 104,740
George Washington Bridge Bus Station 7,590 7,276 5,688 7,844
Bayonne Bridge 21,811 14,979 22,895 16,468
Goethals Bridge 20,581 23,628 23,971 23,023
Outerbridge Crossing 21,278 23,725 20,620 25,042
Port Authority Bus Terminal 91,783 94,058 90,595 97,269

Total - Tunnels, Bridges & Terminals 415,468 416,520 436,490 435,545

Rail
PATH Rapid Transit 271,883 259,702 258,614 269,811
Journal Square Transportation Center 13,779 11,287 11,245 12,050

Total - Rail 285,662 270,989 269,859 281,861

Port Commerce

Port Newark 79,898 74,947 75,978 77,955

Elizabeth - PA Marine Terminal 21,923 29,337 26,689 27,769
Brooklyn - PA Marine Terminal 8,902 11,020 11,361 10,231

Red Hook Container Terminal 30,773 8,560 25,821 9,703

Howland Hook Marine Terminal 12,271 10,683 9,694 11,958

Greenville Yard 3 6 6 5
New York & New Jersey Rail, LLC 4,049 3,623 4,643 4,666 

### Port Jersey - Port Authority Marine Terminal 23,594 22,491 27,760 23,799

Total - Port Commerce 181,413 160,667 181,952 166,086

Development
Essex County Resource Recovery Facility 64,838 50 39 403

PA Industrial Park at Elizabeth 106 165 235 134
Bathgate Industrial Park 1,549 2,231 2,090 3,126
Ferry Transportation Services 252 5,174 3,856 2,695

Teleport 12,714 15,723 13,096 14,557
Newark Legal & Communications Center (130) 390 12 54

Hoboken Waterfront 224 384 414

- Total Development 79,553 24,117 19,742 20,969

World Trade

World Trade Center 70,133 88,618 90,575 180,192

WTC Retail LLC 6,047 2,442 1,414 1,643

Total World Trade 76,180 91,060 91,989 181,835



### Regional & Other Programs 31,149 8,158 3,847 8,220 

### Port Authority Insurance Captive Entity, LLC 4,238 4,463 4,412 4,991 

### Total Operating & Maintenance Expenses 2,402,524 2,346,541 2,398, 745 2,546, 354



### Allocated Expenses 193,063 203,900 212,591 216,733 

### Total Operating Expenses 2,595,587 2,550,441 2,611, 336 2,763, 087 

### Operating Asset Obligations 27,956 26,005 25,933 23,837

Total Expenses $2,623,543 $2,576,446 $2,637,268 $2,786,923

## Operating Expenses by Major Category
(In Thousands)

Tunnels, Bridges Rail Port Develop- World Allocated

Total Aviation & Terminals Transit Commerce ment Trade & Other (1)

Operations $865,311 $433,351 $156,899 $110,214 $44,256 $10,940 $76,637 $32,514 Security 633,605 308,429 120,409 51,817 17,931 747 43,088 91,184

Maintenance 458,155 212,977 84,719 76,756 33,615 5,651 18,154 26,283 Management Services 388,089 70,670 35,647 18,598 38,687 1,186 17,008 206,293

Rent 319,169 240,405 1,236 1,143 26,334 2,125 19,478 28,448 Debt Expense 122,594 98,141 0 0 0 0 0 24,457

Total $2,786,923 $1,363,973 $398,910 $258,528 $160,823 $20,649 $174,365 $409,179

Operations - Non-maintenance operations spending, including customer service, facility management, facility
operations, leases, revenue collection costs, and utilities.

Security - Providing safe and secure transportation services to the region and nation by vigilance over potential threats, investment in infrastructure and new technology, and employment of best practices in security and emergency preparedness operations.

Maintenance - Costs incurred to keep property, facility structures and equipment operating at a high level of performance, including conforming with applicable codes and regulations, thereby preventing injury to life and damage to property. Activities include Electrical, General Maintenance (Elevators and Escalators, Tunnel Subway Pump, Automotive Maintenance and Servicing, etc.), Inspections, Mechanical, Janitorial/Grounds Keeping, Snow and Ice Removal, Structural (inspections)

Management Services - Reflects functions that support line business operations as well as agency-wide management, including costs related to agency oversight, departmental management, audit, financial services, human resources management, insurance, legal services, planning, public and government affairs, technology support, and training.

Rent - Payments made periodically to governmental agencies and other landlords in return for the use of land, buildings, offices,
or other property.

Debt Expense - Includes interest on special project bonds and operating asset obligations.

Allocated & Other (1) is comprised of police headquarters, staff department and development expenses which are allocated to

facilities. Operations

31%

Security

23% Maintenance

16% Management Services

14% Rent

12% Debt Expense

4%

# ALLOCATED EXPENSES

(In Thousands)

2012 2013 2013 2014 Department / Office Actual Budget Estimate Budget

Audit $9,054 $10,472 $9,878 $9,628

Chief Administrative Officer 694 - - - Chief, Capital Planning 1,630 1,406 2,289 2,153

Chief Compliance Officer - 673 - 398
Chief Engineer 2,952 2,910 2,828 2,617

Chief Financial Officer 5,480 4,746 4,667 3,546
Chief Operating Officer 4,229 3,252 2,579 4,240

Chief of Public & Government Affairs 179 555 26 391

Comptroller's 9,839 10,652 10,158 9,955
Chief, Real Estate & Development 2,627 2,843 2,745 2,731

Executive Offices 2,782 2,837 2,881 2,772
Government & Community Affairs 3,918 4,461 4,192 4,768

Human Resources 18,582 20,344 22,421 24,641

Inspector General 8,345 8,278 10,602 8,537

Labor Relations 1,473 1,670 1,533 1,670

Law 20,173 20,671 19,576 20,497

Management and Budget 7,148 7,679 7,026 7,398

Marketing 5,696 5,868 5,872 5,833

Media Relations 2,117 2

, 394 2,180 2,476
Office of Business Diversity and Civil Rights 3,379 3,972 3,291 5,373

Office of Environmental and Energy Programs 4,547 4,269 4,338 4,849

Office of Financial Analysis 1,657 1,755 1,474 1,487
Office of the Secretary 4,580 5,313 5,245 5,382
Office of Strategic Initiatives 803 870 - - Operation Services 5,338 5,308 5,529 5,248
Planning & Regional Development 5,049 5,805 4,853 4,797

Procurement 9,005 9,007 8,822 8,976

Real Estate 7,99 2 11,091 7,790 18,050

Technology Services 47,825 57,907 54,801 60,448
Corporate Enterprise Systems 12,809 14,437 14,392 20,496

Treasury 9,929 10,592 17,270 10,898

WTC Construction 3,300 3,360 3,360 3,404

Other (Revenue, Reclassifications, etc.) (159) (567) (397) (3,312)

Sub-total General Administrative 222,970 244,828 242,220 260,349

Allocated Expenses: *

Less General Administrative allocated to Capital (34,414) (47,497) (35,606) (49,206)

General Administrative Allocated to Operations 188,556 197,331 206,614 211,143

Development Expenses Allocated to Operations 4,479 6,569 5,977 5,590
Total Allocated Expenses $193,036 $203,901 $212,591 $216,733

* Allocated Expenses reflects General Administrative Expenses (less amount allocated to capital), plus Development

Expenses. Development Expenses are general expenses which includes certain studies and initiatives which

support the Port District.

## CAPITAL EXPENDITURES BY FACILITY, including 5-Year Look Forward
(In Thousands)

2012 2013 2014 2015 2016 2017 2018

Actual Estimate Budget Plan Plan Plan Plan

Aviation (including PFCs) LaGuardia Airport $57,871 $95,341 $186,221 $356,102 $461,355 $388,998 $429,881
John F. Kennedy International Airport 90,808 154,865 195,905 249,520 184,575 171,035 125,720
Newark Liberty International Airport 164,221 130,450 110,021 152,198 154,245 121,603 242,590
Teterboro Airport 14,752 39,423 23,481 7,844 7, 578 3, 500 12, 548 Stewart International Airport 10,284 32,643 43,699 46,717 18, 776 11, 927 8, 392

Total - Aviation 337,936 452,722 559,328 812,381 826,530 697,063 819,131

Tunnels, Bridges & Terminals

Holland Tunnel 14,507 15,481 29,977 30,693 59, 074 41, 873 28, 762

Lincoln Tunnel 67,063 139,528 297,814 352,049 361,821 387,045 275,365 George Washington Bridge 32,018 59,107 90,339 97,308 160 ,717 1 79,360 176,156 George Washington Bridge Bus Station 4,105 3,838 51,565 6,239 5, 823 1, 409 2, 021 Bayonne Bridge 41,840 102,509 245,348 330,398 308,366 218,560 72,934 Goethals Bridge 20,611 53,487 56,279 46,070 93, 511 107 ,755 1 79,965 Outerbridge Crossing 1,999 14,557 12,587 11,036 15, 690 16, 838 14, 329
Port Authority Bus Terminal 21,114 27,685 28,662 24,019 26, 740 28, 253 16, 969 Total - Tunnels, Bridges & Terminals 203,257 416,192 812,569 897,811 1,031, 742 981, 092 766,500

Rail
PATH Rapid Transit 143,805 171,646 179,647 177,666 220,306 566,668 487,303 Journal Square Transportation Center 5,634 6,270 1,299 110

- - 872

Total - Rail 149,439 177,916 180,946 177,776 220,306 566,668 488,174

Port Commerce

Port Newark 66,063 52,743 57,151 66,457 51, 154 25, 332 48, 890

Elizabeth - PA Marine Terminal 49,364 9,617 6,683 4,402 2, 500 3, 000 10, 392
Brooklyn - PA Marine Terminal 6,678 7,043 6,326 2,089 2, 175

- 8 2

Red Hook Container Terminal 1,590

- - - - - 2,026

Howland Hook Marine Terminal 6,645 8,284 12,443 11,031 4, 500 8, 500 29, 584

NY and NJ Rail LLC 7,868 3,132 35,112 51,339 38, 200 23, 500 19, 500
Port Jersey - Port Authority Marine Terminal 36,303 100,602 94,996 55,147 40, 774 28, 300 15, 477

Total - Port Commerce 174,511 181,421 212,710 190,465 139,304 88,632 1 25,951

Development Ferry Transportation Services 70 70

- - - - - Teleport 34 296 1,165

- - - - Bathgate Industrial Park 106 231

- - - Total - Development 210 597 1,165

- - - -

World Trade Center
WTC Transportation Hub 563,835 423,434 552,129 272,208 114,399

- - WTC Retail LLC 273,300 260,254 400,000 393,488 149,916 49,817 2 2,328

One World Trade Center 587,892 502,253 666,297 111,434 75,924 2 8,298 5, 078 WTC Site (including infrastructure, memorial and VSC) 943,488 481,135 779,772 744,943 372,434 118,168 43,577

Total - World Trade Center 2,368,515 1,667,076 2,398,198 1,5 22,073 712, 673 196,283 70,983

Net Capital Expenditures - Line Departments 3,233,868 2,895,924 4,164,917 3,6 00,507 2,9 30,555 2,5 29,738 2,2 70,739

Regional & Other Programs:
Regional Infrastructure Renewal Program

- - 30,000 30,000 30,000 30, 000 30, 000 Other Regional Programs 6,697 3,151 17,592 11,996 7, 395 3, 588 2, 000 Total - Regional & Other Programs 6,697 3,151 47,592 41,996 37, 395 33, 588 32, 000

Capital Contingency

- - 150,000 50,000

- - - Agency Provisions

- - 22,000 22,000 22,000 22,000 65,514 Total Net Capital Expenditures 3,240,565 2,899,075 4,384,509 3,7 14,503 2,9 89,950 2,5 85,326 2,3 68,253

Add Back - Financial Income 87,577 2,315 2,482 2,691 3, 109 2, 020 3, 020

Total Gross Capital Expenditures $3,328,142 $2,901,390 4,386,991 $3,717,194 $2,993,05 8 $2,587,346 $2,371,273

Capital Funding Sources: Capital Paid with Reserves 942,142 2,541,390 2,836,991 1,8 92,194 1,6 63,058 1,6 62,346 1,2 71,273 Capital Paid with Debt 2,386,000 360,000 1,550,000 1,8 25,000 1,3 30,000 925, 000 1,100, 000 Total Capital Funding Sources $3,328,142 $2,901,390 $4,386,991 $3,717,194 $2,993,058 2,587,346 $2,371,273

# Budget Support 

# Schedules

# Revenues, Expenses and Changes in Net Position, including 5-Year Look Forward

Prepared in accordance with Generally Accepted Accounting Principles (In Thousands)

2012 2013 2014 2015 2016 2017 2018

Actual Estimate Budget Plan Plan Plan Plan

Gross Operating Revenues $4,056,157 $4,190,430 $4,410,818 $4,703,514 $4,980,609 $5,190,223 $5,329,272

Expenses: Operating & Maintenance Expenses (2,402,525) (2,398,744) (2,546,353) ( 2,687,817) ( 2,769,299) ( 2,818,135) ( 2,877,705)

Allocated Expenses (193,063) (212,591) (216,733) (254, 513) (246, 701) (208, 052) (205,36 1)

Total Operating Expenses (2,595,588) (2,611,335) (2,763,086) ( 2,942,331) ( 3,016,000) ( 3,026,186) ( 3,083,066)

Operating Asset Obligations (27,956) (25,933) (23,837) (21,496) (19,421) (18,457) (16,128)

Net (Expenses) Recoverables related to Sandy (30,000) 25,000

- - - -

Total Expenses (2,653,544) (2,612,267) (2,786,922) ( 2,963,827) ( 3,035,421) ( 3,044,643) ( 3,099,194)

Net Operating Revenues 1,402,613 1,578,163 1,623,896 1,7 39,687 1,9 45,188 2,1 45,580 2,2 30,078

Depreciation & Amortization (866,575) (842,226) (878,510) (1,004,322) ( 1,075,677) ( 1,068,748) ( 1,066,888)

Financial Income:

Interest Income 26,969 24,104 13,589 15,693 36,514 79,044 100,598 Net increase/(decrease) in fair value of investments 2,151

- - - - -

Interest and Other Expenses (605,455) (598,630) (672,021) (739,562) (852,449) (918,602) (1,030,722)

Net Assets before Restricted Grants, Contributions

and PFCs (40,297) 161,411 86,955 11,495 53,577 237,274 233,066

Net PFC Program 127,232 125,449 134,291 141,786 155,218 165,073 174,626

Net Grants and Contributions in Aid of Construction 1,047,608 528,490 558,468 461,412 345,218 390,793 154,583

Increase in Net Position $1,134,543 $815,350 $779,713 $614,693 $554,013 $793,140 $562,275

Net Position, January 1 $11,725,891 $12,860,434 13,675,784 $14,455,498 $15, 070,191 $15,624,204 $16,417,344

Net Position, December 31 12,860,434 13,675,784 14,455,498 15,070, 191 15,624,20 4 16,417,344 16,979,619

Increase in Net Position $1,134,543 $815,350 $779,713 $614,693 $554,013 $793,140 $562,275

# Consolidated Statement of Net Position

(In Thousands)

2012 2013 2013 2014

Actual Budget Estimate Budget

ASSETS:

Cash and Investments 5,930,425 $ 4,539,254 $ 5,447, 091 $ 4,249, 411 $

Receivables, net 589,035 412,181 497,026 453,452

Restricted Receivables 35,476 43,887 34,396 47,109 Deferred charges and other noncurrent assets 1,727,376 1,736,250 1,626, 158 1,643, 122 Amounts receivable - Special Project Bonds 1,656,350 1,584,611 1,587, 468 1,513, 891 Amounts receivable - 4 WTC Bonds Projects 1,249,309 1,248,673 1,248, 697 1,513, 891 Unamortized costs for regional programs 549,161 1,091,843 405,260 378,650
Facilities, net 25,551,503 27,047,509 27,632, 436 31,207, 110

Total assets 37,288,635 37,704,208 38,478,531 41,006,636

LIABILITIES:
Accounts payable 886,862 1,020,076 1,029,589 1,419,067 Accrued interest and other liabilities (including PAICE) 883,927 1,140,616 930,404 1,215,077 Accrued pension and other employee benefits 653,131 560,810 631,968 548,643 Amounts Payable - Special Project Bonds 1,656,350 1,584,611 1,587,468 1,513,891 Amounts Payable - 4 WTC Bonds Projects 1,249,309 1,248,673 1,248, 697 1,225, 520 Bonds and other asset financing obligations 19,098,622 19,069,206 19,374,621 20,628,941

Total liabilities 24,428,201 24,623,992 24,802,747 26,551,139

NET ASSETS $12,860,434 $13,080,216 $13,675,784 $14,455,497

Net assets are composed of: Retained Earnings: Invested in capital assets, net of related debt 10,010,966 $ 10,352,812 $ 11,048,057 $ 12,054, 604 $

Restricted: Restricted Passenger Facility Charges 132,228 25,000 181,358 207,805 PA Insurance Captive Entity - PAICE 160,161 156,571 173,921 160,172 Minority Interest in Tower 1 Joint Venture, LLC 100,000 100,000

Unrestricted 2,457,079 2,545,833 2,172,448 2,032,916

Total Net assets 12,860,434 $ 13,080,216 $ 13,675,784 $ 14,455, 497 $

### INFORMATION ON PORT AUTHORITY OPERATIONS BY FACILITY

Prepared in accordance with Generally Accepted Accounting Principles

(In Thousands)

Net Income Grants, 2014 2013 2012

Gross Depreciation Net Before Grants Contributions, Budget Estimate Actual

Operating O&M Allocated & Interest Contributions Insurance Net Income/ Net Income/ Net Income/

Revenues Expenses Expenses Amortization & Other Exp. & PFCs & PFCs (Loss) (Loss) (Loss)

Aviation

LaGuardia Airport $372,260 $260,801 $24,539 $49,991 $21,684 $15,245 $5,666 $20,911 $21,171 $30,935

John F. Kennedy International Airport 1,113,833 698,974 36,406 147,144 67,995 163,314 10,622 173,936 169,149 190,383

Newark Liberty International Airport 887,806 439,783 32,273 117,750 56,308 241,692 8,650 250,342 182,561 178,653

Teterboro Airport 36,964 27,189 2,562 16,880 7,304 (16,972) 10,115 (6,857) 10,375 267

Stewart International Airport 8,599 20,100 512 4,176 2,242 (18,431) 2,013 (16,419) (8,221) (5,445)

Total - Aviation 2,419,462 1,446,847 96,292 335,942 155,533 384,849 37,066 421,914 375,035 394,793

Tunnels, Bridges & Terminals

Holland Tunnel 175,784 71,179 10,256 16,700 7,470 70,178 316 70,494 59,884 58,890

Lincoln Tunnel 228,531 89,980 12,596 39,474 13,522 72,959 379 73,339 54,732 48,916

George Washington Bridge 649,555 104,739 12,974 30,879 22,059 478,904 354 479,258 407,458 368,503

George Was hington Bridge Bus Station 1,621 7,844 1,025 1,872

- (9,120) 38 (9,082) (6,419) (8,517)

Bayonne Bridge 41,477 16,468 1,855 5,295 5,670 12,189 63 12,252 (40) (3,301)

Goethals Bridge 180,145 23,023 2,770 18,091 5,238 131,023 70 131,093 113,712 104,553

Outerbridge Crossing 162,941 25,042 3,004 4,758 1,899 128,237 82 128,319 119,403 96,515

Port Authority Bus Terminal 44,387 97,269 11,275 24,376 13,839 (102,372) 335 (102,036) (100, 078) (105,350)

Total - Tunnels, Bridges & Terminals 1,484,441 435,545 55,755 141,445 69,697 781,998 1,638 783,637 648,652 560,209

Rail

PATH Rapid Transit 173,755 269,811 47,917 154,911 63,721 (362,605) 433,000 70,395 2,116 13,366

Journal Square Transportation Center 4,875 12,050 256 6,255 2,627 (16,313)

- (16,313) (16,080) (20,617)

Total - Rail 178,630 281,861 48,173 161,166 66,348 (378,918) 433,000 54,082 (13,964) (7,251)

Port Commerce

Port Newark 75,508 77,956 4,612 28,814 21,102 (56,977) 369 (56,608) (46,209) (51,300)

Elizabeth - PA Marine Terminal 121,062 27,769 1,471 36,275 30,863 24,684 38 24,722 16,880 18,577

Brooklyn - PA Marine Terminal 5,841 10,231 769 772 1,527 (7,457) 25 (7,432) (9,673) (2,327)

Howland H ook Mar i ne Terminal 13,947 11,958 512 17,001 12,297 (27,822)

- (27,822) (29,844) (32,235)

Greenville Yard 361 5

- - - 356

- 356 348 348

Port Jersey - Port Authority Marine Terminal 22,393 23,799 769 2,313 9,853 (14,341) 44 (14,297) (20,966) (20,405)

New York & New Jersey Rail, LLC 2,958 4,666

- 409 1,545 (3,662) 25,119 21,457 (101) 1,447

Red Hook Container Terminal 1,708 9,703 256 467

- (8,719)

- (8,719) (15,100) (14,281)

Total - Port Commerce 243,779 166,086 8,390 86,053 77,187 (93,937) 25,596 (68,341) (104,666) (100,177)

Development

Essex County Resource Recovery Facility 423 403

- 1,405 120 (1,505)

- (1,505) (1,680) (9,653)

PA Industrial Park at Elizabeth 1,479 134 6 286 214 840

- 840 562 353

Bathg at e Industrial Park 4,919 3,126

- 1,268 115 409

- 409 1,153 1,268

Ferry Transportation Services 209 2,695

- 5,291 3,587 (11,364)

- (11,364) (3,265) (10,214)

Teleport 14,084 14,556 256 1,870 322 (2,920)

- (2,920) (1,367) (1,301)

Newark Legal & Communications Center 403 54

- 2,877 531 (3,060)

- (3,060) (13,692) (1,748)

Hoboken Water front 7,038

- 17 2,841 2,370 1,811

- 1,811 557 1,745

Queens West Waterfront 842

- - 605 1,388 (1,151)

- (1,151) (1,549) (1,925)

Total Development 29,397 20,969 279 16,443 8,647 (16,940)

- (16,940) (19,282) (21,474)

World Trade Center

World Trade Cente r 51, 845 71,593 413 6,215 222,216 (248,592) 4,698 (243,894) 1,457 31,365

WTC Site 2,765 108,598 7,431 20,523

- (133,787) 56,471 (77,317) (68,806) 272,220

WTC Retail LLC 0 1,643

- 36,161 46,535 (84,339)

- (84,339) (18,695) 93,313

World Trade Center 54,610 181,835 7,844 62,899 268,751 (466,719) 61,168 (405,550) (86,044) 396,898

Regional and Other 500 8,220

- 74,562 36,105 (118,387)

- (118,387) (130,417) (174,641)

Port Authority Insurance Captive Entity, LLC 4,991

- (4,991)

- (4,991) (4,412) (2,710)

Net Expenses (Recoverables) related to Sandy

- - - - (0) 0

- 0 25,000 (30,000)

Sub-total 4,410,818 2,546,353 216,732 878,510 682,268 86,955 558,468 645,423 689,902 1,015,646

PFC Progra m

- - - 94,344

- (94,344) 228,635 134,291 125,449 118,897

Total Port Authority $4,410,818 $2,546,353 $216,732 $972,854 $682,268 (7,390) $787,103 $779,713 $815,351 $1,134, 543

# Revenues and Reserves

Prepared pursuant to Port Authority bond resolution 

### (In Thousands)

2012 2013 2013 2014

Actual Budget Estimate Budget

Gross Operating Revenues $4,056,158 $4,224,468 $4,190,434 $4,410,818

Expenses: Operating & Maintenance Expenses 2,402,526 2,346,541 2,398,745 2,546,354

Allocated Expenses 193,063 203,900 212,591 216,733

Total Operating Expenses 2,595,589 2,550,441 2,611,336 2,763,087

Operating Asset Obligations 27,956 26,005 25,933 23,837

Net expenses related to Hurricane Sandy 30,000 (25,000)

Total Expenses 2,653,545 2,576,446 2,612,268 2,786,923

Net Operating Revenues 1,402,613 1,648,022 1,578,166 1,623,895

Financial Income:

Interest Income 26,970 9,952 24,104 13,589 Net increase/(decrease) in fair value of investments 2,151

- - -
Restricted Net Assets - Port Authority Insurance Captive Entity, LLC 2,710 885 (88) 491

Grants and contributions in aid of construction 565,976 420,298 491,830 553,770

1 WTC / WTC Retail Insurance Proceeds 17,962

- - -
Application of 4 WTC Associated Payments 65,293 36,660 36,660 4,698

Allocated Passenger Facility Charges 110,015 222,897 167,781 208,011

Net Revenues Available for Debt Service and Reserves 2,193,690 2,338,714 2,298,453 2,404,454

Debt Service: Interest on Bonds and Other Obligations 627,200 655,148 597,629 691, 858

Debt Maturities and Retirements 224,405 214,786 204,000 226, 205

Repayment of Asset Financing Obligations 16,514 15,671 15,671 2,482

Total Debt Service 868,119 885,605 817,300 920,545

Increase in Reserves from Operations

& Financial Income 1,325,571 1,453,109 1,481,153 1,483,909

Direct Investment in Facilities (691,079) (1,688,028) (979,750) ( 1,942,362)

Appropriation to / (from) Reserves for Self-Insurance 37,547

- - -
Net Increase / (Decrease) in Reserves for Year 672,039 (234,919) 501,403 (458,453)

Reserves, beginning of year 2,705,036 3,512,056 3,377,075 3,878,478

Reserves, end of year $3,377,075 $3,277,137 $3,878,478 $3,420,025

# ASSETS AND LIABILITIES

**(Pursuant to Port Authority Bond Resolutions)** 

## (In Thousands)

2012 

### 2013 2013 2014

Actual Budget Estimate Budget

Assets

Invested In Facilities $40,818,087 $44,623,593 $43,717,161 $48,101,672



### Cash and Investments 5,930,424 4,539,254 5,447,091 4,249,411



### Other Assets 5,258,395 5,040,672 4,994,714 5,142,403



### Total Assets 52,006,906 54,203,519 54,158,966 57,493,486



### Liabilities

Consolidated Bonds 18,076,497 18,886,502 18,260,318 19,887,870



### and Notes Other Obligations 3,827,948 3,689,237 3,668,061 3,480,483 

### Accounts Payable

and Other Liabilities 2,555,384 2,806,550 2,998,357 3,182,787



### Total Liabilities 24,459,829 25,382,289 24,926,736 26,551,140



### Net Assets $27,547,077 $28,821,230 $29,232,230 $30,942,346



### Net Assets Are Composed Of:

Facility Infrastructure Investment $24,131,488 $25,472,519 $25,315,239 $27,483,807



### Reserves:

General Reserve Fund 2,026,605 2,096,617 2,040,826 2,164,305



### Consolidated Bond Reserve Fund 1,350,470 1,180,520 1,837,652 1,255,720



### Total Reserve Funds 3,377,075 3,277,137 3,878,478 3,420,025



### Appropriated Reserves for Self-insurance 38,514 71,574 38,514 38,514



### Net Assets $27,547,077 $28,821,230 $29,232,231 $30,942,346

# Outstanding Obligations and Financing

## SUMMARY OF DEBT TYPE

(In Thousands)



### 2012 Issued/ Repaid/ Issued/ Repaid/
Type: Actual Accreted Refunded Estimate Accreted Refunded Budget

Consolidated Bonds $18,076,497 $1,850,201 ($1,714,635) $18,212,063 $2,796,857 ($1,507,990) $19,500,930

Commercial Paper 384,625 927,515 (964,030) 348,110 175,000 (100,000) 423,110

Variable Rate Master Notes 77,900

- - 77,900

- - 77,900

PA Equipment Notes 49,565

- (2,640) 46,925

- (15,425) 31,500

Fund Buy-out Obligation 336,453 25,836 (51,212) 311,077 23,699 (51,214) 283,562

MOTBY Obligation 78,060 4,269 (30,000) 52,329 925 (5,000) 48,254

4 WTC Net Lease Obligation 1,225,520

- - 1,225,520

- - 1,225,520

Sub-total $20,228,620 $2,807,821 ($2,762,517) $20,273,924 $2,996,481 ($1,679,629) $21,590,776

Special Project Bonds 1,656,350

- (68,882) 1,587,468

- (73,577) 1,513,891

Total Obligations $21,884,970 $2,807,821 ($2,831,399) $21,861,392 $2,996,481 ($1,753,206) $23,104,667

Notes on Limitations of Outstanding Obligations

Limitations applicable to Port Authority debt are not, unless otherwise indicated, "legal limits" established by State constitutions or laws but, rather, are

set forth in, or calculated in accordance with, the contracts with the holders of such obligations, as adopted by the Port Authority's Board of

Commissioners. Subject to the issuance tests and limitations contained in the various resolutions and policies established by the Port Authority.

Consolidated Bonds: (which includes Consolidated Notes) established pursuant to the Consolidated Bond Resolution of October 9, 1952, under

which additional bonds may not be issued except under one or another of three conditions, each of which requires that a certain future calendar

year's debt service is met at least 1.3 times by certain revenues.

Commercial Paper: These obligations are issued to provide interim financing for authorized projects at Port Authority facilities and may be

outstanding until December 31, 2015. The maximum aggregate principal amount that may be outstanding at any one time is $300 million for Series A

and $200 million for Series B.

Variable Rate Master Notes: These notes may be issued in aggregate principal amounts outstanding at one time not to exceed $400 million.

Port Authority Equipment Notes: These notes may be issued in aggregate amounts outstanding at any one time not to exceed $250 million.

Fund Buy-Out Obligation: Represents the present value of amounts due to the States of New York and New Jersey upon the termination, in 1990,

of the Fund for Regional Development.

MOTBY Obligation: Represents the present value of amounts due to the Bayonne Local Redevelopment Authority for the purchase of the Marine

Ocean Terminal at Bayonne Peninsula.

4 WTC Net Lease Obligations: Represents the principal amount due on the New York Liberty Development Corporation Liberty Revenue Bonds,

Series 2011, for the 4 World Trade Center Project.

Special Project Bonds: Neither the full faith and credit of the Port Authority, not the General Reserve Fund, nor the Consolidated Bond Reserve

Fund are pledged to the payment of the principal and interest on special project bonds. Each series of Special Project Bonds is to be issued under a

separate resolution and may be issued in one or more installments as the Port Authority may determine. 

### 2013 2014

# Staffing

## BUDGETED PERMENANT POSITIONS

2012 2013 2014

DEPARTMENT Actual Estimate Budget

CHIEF OF HUMAN CAPITAL Human Resources (including Medical Services) 71 75 75

Labor Relations 10 6 6

CHIEF, CAPITAL PLANNING 2 5 5 Project Management Office 8 8 8 Office of Business Diversity and Civil Rights 14 14 15 Office of Environmental & Energy Programs 12 12 12 Planning & Regional Development 20 22 22 WTC Redevelopment 17 16 16

WTC Construction 110 110 101

CHIEF ENGINEER/Engineering 538 538 538

CHIEF FINANCIAL OFFICER 3 3 3 Comptroller's 98 98 98 Management and Budget 38 36 36 Operations Standards 6 6 5 Office of Financial Analysis 8 7 7 Priority Programs 6 4 4 Technology Services 104 103 103 Treasury 42 42 42

CHIEF OPERATING OFFICER 7 7 9

Aviation 929 933 933 Aircraft Rescue and Fire Fighting

- - 284

Port Commerce 169 169 169

Rail Transit 1,070 1,073 1,073 Tunnels, Bridges & Terminals 882 873 873 Operations Services (including Facility Construction Support) 423 424 423

CHIEF, PUBLIC & GOVERNMENT AFFAIRS 2 2 2 Government and Community Affairs 13 13 13

Media Relations 9 10 10 Marketing 25 24 24

CHIEF, REAL ESTATE & DEVELOPMENT 11 11 11

Real Estate Services 39 39 39

EXECUTIVE OFFICES 8 8 8

GENERAL COUNSEL

Law 128 127 127

Procurement 91 92 92

INSPECTOR GENERAL 50 50 47

Audit 74 74 77

OFFICE OF THE SECRETARY 19 16 16 Transparency Office

- 2 2

CHIEF SECURITY OFFICER

- 6 10 Rescue Training Center

- - 14 Capital Security Projects 22 21 21 Office of Emergency Management 16 17 17 Public Safety 1,680 1,679 1,586

CHIEF COMPLIANCE OFFICER

- 2 2

CHIEF OF ADMINISTRATION 3

- -

TOTAL BUDGETED PERMANENT POSITIONS 6,777 6,777 6,978

# Activity Highlights

## ACTIVITY HIGHLIGHTS

2006 - 2012 ACTUAL, 2013 ESTIMATE AND 2014 BUDGET
(in thousands)

Tunnels, Bridges & Terminals
(Eastbound Vehicular Movements)

Autos Buses Trucks Total

2006 * 115,506 3,140 8,374 127,020

2007 115,349 3,139 8,516 127,004

2008 112,176 3,158 8,391 123,725

2009 110,755 3,119 7,626 121,500

2010 110,482 3,122 7,602 121,206

2011 108,428 3,111 7,611 119,150

2012 105,895 2,957 7,401 116,253

2013 Estimate 105,841 2,907 7,345 116,093

2014 Budget 105,969 3,006 7,295 116,270

Aviation - Passengers

International Domestic Total

2006 30,969 73,164 104,133

2007 33,523 75,546 109,069

2008 34,635 71,579 106,214

2009 33,514 68,956 102,470

2010 35,377 69,258 104,635

2011 36,465 69,053 105,518

2012 37,687 71,328 109,015

2013 Estimate * 38,531 72,782 111,313

2014 Budget 39,660 74,576 114,236

PATH - Passengers

2006 66,966

2007 71,592

2008 74,954

2009 72,277

2010 73,911

2011 * 76,600

2012 72,563

2013 Estimate ** 73,387

2014 Budget 78,814

Port Commerce - Containers

2006 2,988

2007 3,100

2008 3,069

2009 2,652

2010 3,076

2011 3,197

2012 3,211

2013 Estimate * 3,235

2014 Budget 3,373

* Represents the highest activity year.

** Reflects declined passenger ridership due to recovery efforts from Superstorm Sandy. 100,000 104,000 108,000 112,000 116,000

'06 '07 '08 '09 '10 '11 '12 '13E 14B

64,000 68,000 72,000 76,000 80,000 84,000

'06 '07 '08 '09 '10 '11 '12 '13E 14B

2,000 2,500 3,000 3,500 4,000

'06 '07 '08 '09 '10 '11 '12 '13E 14B TB&T - All Vehicles

Port Commerce - Containers Aviation - Total Passenger Traffic

PATH - Passengers 110,000 115,000 120,000 125,000 130,000

'06 '07 '08 '09 '10 '11 '12 '13E 14B

# 2014 Capital Budget

February 19, 2014

## 2014

BUDGET

Aviation 559,328 $

Development 1,165

PATH 180,946

Port Commerce 212,710

Regional Capital Programs 47,592

Tunnels, Bridges & Terminals 812,569

World Trade Center 2,398,198

Provisions 172,000



## Total 4,384,508 $

Category Designations

Mandatory (MAND)

Revenue Producing Projects (RPP)

Security (SEC)

State of Good Repair (SGR)

System Enhacement Projects (SEP)

State & Regional Projects (SRP)

Stages Designations

Conceptual Design (Stage 1)

Preliminary Design (Stage 2)

Contract Documents (Stage 3)

Construction (Stage 4)

CMWP Capital Major Works Program



# THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING2014

PROJECT ID TITLE CATEGORY STAGE BUDGET

AVIATION

CA02-LaGUARDIA AIRPORT

AERONAUTICAL

CA02-127 REHABILITATION OF RUNWAY DECK PRIORITY STRUCTURAL ELEMENTS - I SGR 4 888

CA02-128 TRANSFER OF RUNWAY DECK ELECTRICAL CIRCUITS SGR 4 2,397

CA02-129 REHABILITATION OF RUNWAY DECK STRUCTURAL ELEMENTS - 2 SGR 1 1,079

CA02-368 REALIGNMENT OF WESTSIDE TAXIWAYS Y, CY, AA, BB, F, D AND RVSR MAND 4 1,161

CA02-401 REHABILITATION OF RUNWAY 13-31 AND ASSOCIATED TAXIWAYS SGR 1 835

CA02-417 RUNWAY 13 & 22 DECKS SAFETY OVERRUN MAND 4 31,872

CA02-423 REHABILITATION OF TAXIWAYS WEST OF RUNWAY 4-22 SGR P 2,845

CA02-445 REHABILITATION OF TAXIWAYS A, M, AND ZA SGR 4 6,945

CA02-466 REHABILITATION OF TAXIWAY "A" FROM ("L" TO "B") AND TAXIWAY "B" (FROM "G" TO "CY") SGR P 507

CA02-470 REPLACEMENT OF RUNWAY 4 & 31 ENGINEERED MATERIALS ARRESTOR SYSTEM SGR 4 12,047

60,578

INFRASTRUCTURE

CA02-053 SCHOOL SOUNDPROOFING - PHASE 3 MAND 4 5,560

CA02-328 UPGRADE PUMPS IN PUMP HOUSE 4 SGR 4 3,703

CA02-454 FEEDER UPGRADE AND REDISTRIBUTION FOR DELTA 2013 EXPANSION OF DELTA AIRLINES SEP 4 832

CA02-460 WEST END 5KV DUCTBANK INFRASTRUCTURE UPGRADE SEP 3 9,313

CA02-461 EAST END SUBSTATION FOUNDATION AND SITE UTILITIES SGR 3 2,202

CA02-486 LAGUARDIA AIRPORT FLOOD CONTROL AND RESILIENCY IMPROVEMENTS SEP 1 2,400

24,010

LANDSIDE

CA02-360 REHABILITATION OF EAST END LGA ROAD PAVEMENT SGR 4 1,773

CA02-388 CMWP - REHABILITATION OF CENTRAL TERMINAL ROAD SGR 3 421

CA02-429 DEVELOPMENT OF INGRAHAM'S MOUNTAIN SEP 1 8,135

CA02-451 CMWP - TRAFFIC AND INTERSECTION SAFETY IMPROVEMENTS - PHASE 1 MAND 4 964

11,292

SECURITY

CA02-037 PHYSICAL PROTECTION OF TERMINAL BUILDING GLASS SEC P 247

C A 02-045 INSTALLATION OF CCTV AT SELECT AOA ACCESS DOORS SEC P 419

CA02-114 INSTALLATION OF BOLLARD AT TENANT TERMINALS SEC 4 972

CA02-117 UPGRADE OF GUARD POST VEHICLE BARRIER CONTROL PANELS SEC 4 211

CA 02-231 PERIMETER INTRUSION DETECTION SYSTEM SEC 4 5,940

CA02-246 AIRPORT CHECKPOINT DIGITAL CCTV SYSTEM ENHANCEMENTS SEC 3 250

CA02-447 800MHZ SIMULCAST TRUNKED RADIO SYSTEM UPGRADE SEC 3 1,349

9,389

TERMINALS

CA02-434 CTB WATER DAMAGE REMEDIATION PHASE - 2 SGR 4 1,614

CA02-435 CTB CONCOURSE PLANK REHABILITATION SGR 4 786

2,401

CAPITAL INFRASTRUCTURE PROGRAM

CA02-442 CTB REDEVELOPMENT PROGRAM - AIR TERMINAL HIGHWAY EAST OF GUARD POST 1 SEP P 580

CA02-440 CTB REDEVELOPMENT PROGRAM - REPLACEMENT OF UTILITIES EAST OF GUARD POST 1 SGR P 13,082

CA02-444 CTB REDEVELOPMENT PROGRAM - HANGARS 2 & 4 SITE REUTILIZATION SEP P 11,825

CA02-469 CTB REDEVELOPMENT PROGRAM - EAST END SUBSTATION BUILDING, EQUIPMENT AND FEEDERS SGR 3 15,583

CA02-482 CTB REDEVELOPMENT PROGRAM - FINAL PLANNING & DESIGN RPP M 11,092

CA02-443 CTB REDEVELOPMENT PROGRAM - SURFACE AND STRUCTURE PARKING PROGRAM SEP P 11,276

CA02-474 CTB REDEVELOPMENT PROGRAM - EAST PARKING GARAGE SEP 1 13,846

CA02-339 CTB REDEVELOPMENT PROGRAM PLANNING & DESIGN - PHASE 2 RPP M 1,267

78,551

CA02-LaGUARDIA AIRPORT 186,221 THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING

SORTED BY DEPARTMENT, FACILITY AND PROGRAM

(In thousands)2014

PROJECT ID TITLE CATEGORY STAGE BUDGET THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING

SORTED BY DEPARTMENT, FACILITY AND PROGRAM

(In thousands)

CA03-JFK INTERNATIONAL AIRPORT

AERONAUTICAL

CA03-032 REHABILITATION OF TAXIWAYS FA & FB SGR 4 4,166

CA03-168 REHABILITATION OF RUNWAY 4L-22R SGR 3 27,798

CA03-243 RUNWAY 13L-31R RUNWAY SAFETY AREA COMPLIANCE MAND 1 1,915

CA03-529 REHABILITATION OF TAXIWAY Q AND QG SGR 1 3,192

CA03-576 RELOCATION OF RESTRICTED VEHICLE SERVICE ROAD BRIDGE - J2 SEP 4 2,320

CA03-614 REHABILITATION OF TAXIWAY B (TAXIWAY N TO TAXIWAY TB) SGR 4 10,314

CA03-616 NORTH BOUNDARY ROAD REALIGNMENT MAND 3 5,785

CA03-618 RELOCATION OF RESTRICTED VEHICLE SERVICE ROAD BRIDGE - J8 SEP 4 5,488

CA03-621 REPLACEMENT OF 5KV FEEDERS SGR 3 9,775

CA03-760 ENGINEERED MATERIAL ARRESTOR SYSTEM MAND 3 9,250

CA03-516 REHABILITATION OF RUNWAY 4R-22L SGR P 368

CA03-565 CONSTRUCTION OF CENTRALIZED DE-ICING FACILITY - PHASE 2 RPP 1 350

80,721

INFRASTRUCTURE

CA03-016 EMERGENCY FUEL SHUTOFF SYSTEM MAND 4 266

CA03-017 REPLACEMENT OF GEOCOMPOSITE LINERS AT BULK FUEL FARM - PHASE 2 MAND 4 1,045

CA03-555 REHABILITATION OF VAN WYCK NORTH & SOUTH SERVICE ROAD SGR 4 3,422

CA03-574 BUILDING 156 (CONTROL TOWER) ROOFING AND HVAC REPLACEMENT SGR 1 2,380

CA03-645 CMWP - SWITCH HOUSE #2 CLIMATE CONTROL AND RELATED WORK SGR 3 853

CA03-646 800MHZ SIMULCAST TRUNKED RADIO SYSTEM UPGRADE SGR 1 1,423

CA03-677 UPGRADE/REHABILITATION FACILITY-WIDE FIRE ALARM SYSTEM SGR P 184

9,574

LANDSIDE

CA03-023 PAVEMENT REHABILITATION OF NORTH BOUNDARY EASTERN, & NORTH HANGAR ROAD SGR 4 3,055

CA03-025 PAVEMENT REHABILITATION OF PAN-AM AND BERGEN ROAD & FEDERAL CIRCLE RAMPS SGR 3 516

CA03-036 PAVEMENT REHABILITATION OF EAST & WEST HANGAR ROAD SGR 4 1,655

CA03-234 PAVEMENT REHABILITATION OF CARGO PLAZA ROAD & CENTER CARGO ROAD SGR 4 1,107

C A03-542 PAVEMENT REHABILITATION OF LOOP & NORTH SERVICE ROAD SGR 4 491

CA03-554 REHABILITATION OF 148TH STREET AND JFK EXPRESSWAY RAMPS SGR 4 1,416

CA03-594 REHABILITATION OF PAVEMENT CARGO SERVICE ROAD SGR 4 2,641

10,880

SECURITY

CA03-061 CCTV EQUIPMENT IN TERMINAL BAGGAGE AREAS SEC 1 490

CA03-141 INSTALLATION OF BOLLARD AT TENANT TERMINALS SEC 4 8,784

CA03-145 UPGRADE OF GUARD POST ANTI-RAM VEHICLE BARRIER CONTROL PANELS SEC 4 211

CA03-389 PERIMETER INTRUSION DETECTION SYSTEM SEC 4 8,818

CA03-391 AIRPORT CHECKPOINT DIGITAL CCTV SYSTEM IMPROVEMENTS SEC 4 1,666

CA03-507 UNMANNED GATES SEC 4 1,625

CA03-639 800MHZ SIMULCAST TRUNKED RADIO SYSTEM UPGRADE SEC 3 1,742

23,337

TERMINALS

CA03-075 TWA FLIGHT CENTER INTERIOR RENOVATION RPP 4 138

CA03-591 REDEVELOPMENT OF TERMINAL 4 RPP 4 71,055

CA03-TB1 INSTALLATION OF WELCOME CENTERS AT TERMINAL 4 AND 5 SEP P 200

71,393

CA03-JFK INTERNATIONAL AIRPORT 195,9052014

PROJECT ID TITLE CATEGORY STAGE BUDGET THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING

SORTED BY DEPARTMENT, FACILITY AND PROGRAM

(In thousands)

CA04-NEWARK LIBERTY INTERNATIONAL AIRPORT

AERONAUTICAL

CA04-516 INSTALLATION OF RUNWAY 11 ENGINEERED MATERIALS ARRESTOR SYSTEM FOR RSA IMPROVEMENTS MAND 4 2,789

CA04-569 END AROUND TAXIWAYS FOR RUNWAY 4L-22R SEP P 515

CA04-455 REHABILITATION OF RUNWAY 4L-22R SGR 3 28,401

CA04-507 REHABILITATION OF TAXIWAY P DELAY REDUCTION AND OTHER IMPROVEMENTS SGR 4 2,257

CA04-512 RELOCATE BREWSTER ROAD & SITEWORK PREPARATION FOR ENGINEERED MATERIALS ARRESTOR SYSTEM MAND 4 3,709

37,671

INFRASTRUCTURE

CA04-041 SCHOOL SOUNDPROOFING - PHASE 3 MAND 4 1,776

CA04-057 CMWP - AIRTRAIN GUIDEWAY COLUMN PROTECTION SEP 3 214

CA04-468 CENTRAL TERMINAL AREA 27KV ELECTRICAL DISTRIBUTION LOOP CLOSURE SEP 3 4,990

CA04-498 REPLACEMENT OF HIGH TEMPERATURE HOT WATER GENERATORS AT CHRP SGR 4 3,630

CA04-528 REPLACEMENT OF CHRP NORTH ELECTRICAL SUBSTATION AND CHILLER UPGRADES SGR 1 547

CA04-539 4TH ELECTRICAL SUBSTATION AT TERMINAL B SEP 1 500

CA04-547 CMWP - REHABILITATION OF FUEL PIT VAULT HATCHES AT C1 RAMP MAND P 629

CA04-579 INFRASTRUCTURE RENEWAL - ELECTRICAL DISTRIBUTION SGR 1 4,500

CA04-583 INFRASTRUCTURE RENEWAL - FUEL DISTRIBUTION - PHASE 1 SGR 3 3,685

CA04-584 TERMINAL B INFRASTRUCTURE AND UTILITY REPLACEMENT & UPGRADE VIA WORK ORDER SGR 4 1,346

CA04-596 BUILDING 157 INFRASTRUCTURE IMPROVEMENT SEP 3 700

CA04-629 REMAIN OVERNIGHT PARKING RPP P 12,500

CA04-635 CMWP - INSTALLATION OF BUILDING 190 PARKING LOT ACCESS AND UNDERGROUND UTILITY SEP 3 619

35,636

LANDSIDE

CA04-513 AIRTRAIN BASE GUIDEWAY MID-LIFE OVERHAUL SGR 4 976

CA04-514 AIRTRAIN BASE VEHICLE SUBSYSTEM LIFECYCLE OVERHAUL SGR 4 4,922

CA04-538 REHABILITATION OF TERMINAL C DEPARTURE AND 1&9 EXIT SOUTH AREA ROADWAY SGR 4 4,174

CA04-555 END-OF-LIFE REPLACEMENT OF AIRTRAIN HVAC SGR 4 1,332

CA04-559 REPLACEMENT OF BRIDGE N20 SGR P 170

C A 04-589 REHABILITATION OF EXPANSION JOINTS AND STRUCTURAL ELEMENTS OF FACILITY BRIDGES SGR 1 280

11,855

SECURITY

CA04-045 PHYSICAL PROTECTION OF TERMINAL BUILDING GLASS SEC P 95

CA04-049 CCTV EQUIPMENT IN TERMINAL BAGGAGE AREAS SEC P 822

CA 04-054 INSTALLATION OF CCTV AT SELECT AOA ACCESS DOORS SEC P 420

CA04-316 PERIMETER INTRUSION DETECTION SYSTEM SEC 4 4,482

CA04-319 AIRPORT CHECKPOINT DIGITAL CCTV SYSTEM ENHANCEMENTS SEC 4 611

CA04-482 INSTALLATION OF BOLLARD AT TENANT TERMINALS SEC 4 1,309

CA04-598 800MHZ SIMULCAST TRUNKED RADIO SYSTEM UPGRADE SEC 3 1,706

9,445

TERMINALS

CA04-473 TERMINAL B REHABILITATION ELECTRICAL & MECHANICAL SYSTEM - PHASE 2 SGR 4 887

CA04-593 TERMINAL B DEVELOPMENT OF OPERATIONAL IMPROVEMENTS FOR SOUTH END OF TERMINAL RPP P 600

CA04-TBD REHABILITATION OF FUELING STATION SEP P 1,000

2,487

CA04-NEWARK LIBERTY INTERNATIONAL AIRPORT 97,094

CA44-NEWARK LIBERTY INTERNATIONAL AIRPORT REDEVELOPMENT

TERMINALS

CA44-017 LOWER LEVEL EXPANSION OF VERTICAL CIRCULATION AT TERMINAL B4 RPP 4 2,132

CA44-018 MID & UPPER LEVELS INTERNATIONAL DEPARTURES RPP 4 1,440

CA44-026 MID-LEVEL INTERNATIONAL MEETER/GREETER RPP 4 2,606

6,1772014

PROJECT ID TITLE CATEGORY STAGE BUDGET THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING

SORTED BY DEPARTMENT, FACILITY AND PROGRAM

(In thousands)

TERMINAL A REDEVELOPMENT PROGRAM

CA44-030 OVERALL SITE AND INFRASTRUCTURE PLANNING(1.0)-TERMINAL A REDEV PROGRM -PHASE II PLANNING RPP 1 250

CA44-031 AIRSIDE PLANNING (2.0) - TERMINAL A REDEVELOPMENT PROGRAM - PHASE II PLANNING RPP 1 250

CA44-032 TERMINAL A REDEVELOPMENT PROGRAM OVERALL PLANNING - TERMINAL PLANNING RPP 1 4,000

CA44-033 LANDSIDE PLANNING (4.0) - TERMINAL A REDEVELOPMENT PROGRAM - PHASE II PLANNING RPP 1 1,500

CA44-039 TERMINAL A REDEVELOPMENT - LANDSIDE CONSTRUCTION RPP P 250

CA44-041 TERMINAL A REDEVELOPMENT - AIRTRAIN CONSTRUCTION RPP P 500

6,750

CA44-NEWARK LIBERTY INTERNATIONAL AIRPORT REDEVELOPMENT 12,927

CA05-TETERBORO AIRPORT

AERONAUTICAL

CA05-084 IMPROVE RUNWAY 6-24 RUNWAY SAFEWAY AREA MAND 4 11,357

CA05-130 REPLACEMENT OF TAXIWAY B WITH NEW TAXIWAY V SEP 1 244

CA05-149 CMWP - REPLACEMENT OF DEICING FLUID STORAGE TANKS SEP 3 1,000

CA05-112 RUNWAY 1 RUNWAY SAFEWAY AREA -1000 FT OVERRUN AND PATROL ROAD MAND 4 3,627

CA05-122 CMWP - INSTALLATION OF INTERIOR WILDLIFE FENCE SEP 3 1,293

17,521

INFRASTRUCTURE

CA05-023 SCHOOL SOUNDPROOFING MAND 4 1,332

CA05-141 STORMWATER DRAINAGE SYSTEM IMPROVEMENTS SEP 1 212

1,544

LANDSIDE

CA05-142 ARFF BUILDING REPLACEMENT SEP P 1,600

1,600

SECURITY

CA05-049 PERIMETER INTRUSION DETECTION SYSTEM SEC 4 2,816

2,816

CA05-TETERBORO AIRPORT 23,481

CA06-STEWART AIRPORT

AERONAUTICAL

CA06-045 REPLACEMENT OF AIRFIELD SIGNS SGR 3 520

CA06-046 CMWP - POSITIVE AIR PRESSURE FOR PASSENGER LOADING BRIDGES MAND 4 652

CA06-066 REHABILITATION OF RUNWAYS 9-27 AND 16-34 SGR 4 30,781

CA06-070 MILL AND OVERLAY OF TAXIWAY M SGR 3 2,068

CA06-017 REHABILITATION OF TAXIWAY B SGR 3 2,189

CA06-100 RUNWA Y INCURSION MITIGATION - PHASE 1B MAND 4 2,260

CA06-115 IMPROVEMENTS TO AOA PERIMETER FENCE SEC 1 355

38,826

INFRASTRUCTURE

CA06-079 BACKFLOW PREVENT DEVICES MAND P 895

895

SECURI TY

CA06-050 DESIGN AND CONSTRUCTION OF THE MID-HUDSON REGIONAL CRIME LABORATORY SEP 4 2,421

CA06-119 IMPROVEMENTS TO GUARD POST SEC P 933

3,354

TERMINALS

CA06-007 TERMINAL EXPANSION FEDERAL INSPECTION FACILITY AND WELCOME CENTER SEP 3 625

625

CA06-STEWART AIRPORT 43,699

AVIATION TOTAL 559,3282014

PROJECT ID TITLE CATEGORY STAGE BUDGET THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING

SORTED BY DEPARTMENT, FACILITY AND PROGRAM

(In thousands)

DEVELOPMENT

CW03-TELEPORT

INFRASTRUCTURE

CW03-020 ELECTRICAL SYSTEM UPGRADE SGR 3 1,165

1,165

CW03-TELEPORT 1,165

DEVELOPMENT TOTAL 1,165

PATH

CR02-PATH

CARS

CR02-345 PURCHASE NEW RAILCARS (PA-5) SGR 4 4,243

CR02-406 SYSTEM UPGRADES FOR PA-5 FLEET SGR 4 3,064

7,306

INFRASTRUCTURE

CR02-259 CONTINUOUS WELDING FOR THE RAIL PROGRAM SGR 4 1,700

CR02-290 PATH EXTENSION TO NEWARK LIBERTY INTERNATIONAL AIRPORT SEP P 7,000

CR02-328 TUNNEL TRACK AND DRAINAGE PROGRAM SGR 4 2,066

CR02-336 REPLACEMENT AND UPGRADE OF THE CHRISTOPHER ST SUBSTATION SGR 4 10,520

CR02-378 REPLACEMENT OF SUBSTATION #8 - KEARNY NJ SGR 2 525

CR02-384 NEWARK COMPRESSOR SEP 3 255

CR02-418 CMWP - REPLACE 15KV AND 27KV CABLES BETWEEN JUNCTION AND SUBSTATION #2 AND #15 SGR 4 340

CR02-419 FIRE ALARM SYSTEMS REHABILITATION SGR 1 713

CR02-421 TUNNEL ELECTRICAL LIGHTING SYSTEM SGR P 231

CR02-434 EMERGENCY DIESEL GENERATORS FOR HARRISON CAR MTC FACILITY & CONSOLIDATED SHOP SEP P 139

CR02-462 REPLACEMENT OF SUBSTATION #7 SGR 3 1,751

CR02-463 REPLACEMENT OF SUBSTATION #9 SGR 1 908

CR02-486 CMWP - RAIL ROAD AVE AND CAISSON 1 VENTILATION BUILDING ROOF REPLACEMENT SGR 4 359

CR02-497 SUBSTATION #9 - PROPERTY ACQUISITION SGR 1 1,002

CR02-505 CMWP - FACADE AND ROOF CHRISTOPHER ST SUBSTATION 1 SGR 1 257

CR02-508 CMWP - REPLACEMENT OF ROOF FOR SUBSTATION 5 (BACKUS) SGR 4 721

CR02-509 REPLACEMENT OF ROOF FOR SUBSTATION 15 (CAISSON) SGR 3 447

CR02-513 CMWP - REPLACEMENT OF ROOF - SUBSTATION 2A SGR 3 107

CR02-514 CM W P - REPLACEMENT OF THE ROOF AT EXCHANGE PLACE SUB #4 SGR 3 370

CR02-517 CONSOLIDATED MTC SHOP - EXHAUST AND VENTILATION SYSTEM MODIFICATIONS SGR 3 241

CR02-522 REPLACEMENT OF ADA ELEVATOR - HOBOKEN SGR 1 503

CR02-527 REPL ACEMENT OF IN-GROUND LIFTS HARRISON CAR MTC FACILITY SGR 1 931

CR02-529 REPLACEMENT OF TRACKSIDE CIRCUIT BREAKERS SGR 1 595

CR02-552 CMWP - TUNNEL MAIN JUNCTION BOX REHABILITATION SGR 4 117

CR02-557 REPLACEMENT OF 650V DC 2,000KCMIL CABLES IN ALL TUNNELS EXCEPT E AND F SGR 4 77

CR02-569 SUBSTATION #8 - PROPERTY ACQUISITION SGR 2 879

CR02-572 REPLACEMENT OF SWITCHING STATION #10 - NEWARK, NJ SGR 4 1,199

CR02-574 30TH ST MEZZANINE REHABILITATION SGR P 756

CR02-582 HACKENSACK RIVER BRIDGE EMERGENCY GENERATOR FUEL TANK SGR 1 1,253

CR02-583 TUNNELS - LATENT DAMAGE SGR 1 5,375

CR02-584 EQUIPMENT PURCHASE RESILIENCY SGR 1 2,084

CR02-585 EQUIPMENT PURCHASE RECOVERY WORK SGR 1 2,548

CR02-518 REPLACEMENT OF SWITCHING STATION NO. 6 SGR 4 1,272

CR02-576 REPLACEMENT OF ROOF - MACMILLAN BLOEDEL (MMB) BUILDING SGR P 340

CR02-TBD1 SUBS 7, 8, 9 AND 14 MID-TERM REPAIRS SGR 1 425

48,007

SECURITY

CR02-573 800MHZ SIMULCAST TRUNKED RADIO SYSTEM UPGRADE SEC 3 957

957

SIGNALS/COMMUNICATIONS

CR02-150 INSTALLATION OF SIGNAL REPLACEMENT PROGRAM SGR 4 37,923

37,9232014

PROJECT ID TITLE CATEGORY STAGE BUDGET THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING

SORTED BY DEPARTMENT, FACILITY AND PROGRAM

(In thousands)

STATIONS

CR02-407 CAPACITY ENHANCEMENTS AND STATION MODIFICATIONS OF GROVE ST STATION SEP 1 2,929

CR02-458 REPLACEMENT & UPGRADE OF HARRISON STATION SEP 4 21,254

CR02-496 HARRISON STATION - PROPERTY ACQUISITION, REMEDIATION & DEMOLITION SEP 4 6,831

CR02-TBD2 HOBOKEN STATION STAIRS FLOOD DOORS SGR 1 425

CR02-TBD3 HOBOKEN UNDER PLATFORM FANS SGR 1 425

31,864

TRACKS

CR02-212 TIE RENEWAL PROGRAM SGR 4 2,078

CR02-258 TURNOUT REPLACEMENT - PHASE 3 SGR 4 2,669

CR02-261 CONTACT RAIL PROGRAM SGR 4 1,082

CR02-358 RESTRAINING RAIL PROGRAM SGR 4 933

CR02-477 HARRISON YARD SPECIAL TRACK WORK SGR 4 1,381

CR02-516 REPLACEMENT OF MITER RAILS HACKENSACK RIVER BRIDGE SGR 4 7,110

CR02-560 INSTALLATION OF SUB DRAINS AND RAISE TRACK AT GRAPE CROSSOVER AREA SEP P 366

15,619

CR02-PATH 141,676

CR08-PATH SAFETY

INFRASTRUCTURE

CR08-022 TUNNEL EMERGENCY VENTILATION FAN BLADE RENOVATION SGR 4 655

655

SECURITY

CR08-066 EXCHANGE PLACE LANDSIDE SECURITY SEC 4 437

CR08-068 JOURNAL SQUARE TRANSPORATION CENTER PHYSICAL PROTECTION SEC 3 1,956

CR08-078 CONSTRUCTION OF FLOODGATE AT TUNNEL A,B,E,& F SEC 3 11,267

CR08-079 TUNNEL MITIGATION SEC P 12,700

CR08-081 EXCHANGE PLACE WATERSIDE PROTECTION SEC 3 1,018

CR08-091 CCTV & ACCESS CONTROL UPGRADES AT 33RD,HOB,PAV, & NWK STATION SEC 4 4,588

CR08-096 INSTALLATION NEW LENEL ACCESS CONTROL &CCTV AT SUBSTATIONS AND ROOMS SEC 1 1,156

CR08-101 CCTV AND ACCESS CONTROL AT 9TH, 14TH, 23RD STATION SEC 3 3,234

CR08-103 INSTALLATION OF TRAIN UNDERCARRIAGE SCREENING DEVICES SEC P 332

36,688

SIGNALS/COMMUNICATIONS

CR08-100 UPGRADE OF UNIFIED COMMUNICATIONS NETWORK - SONET SGR 4 628

628

CR08-PATH SAFETY 37,971

CR21-JOURNAL SQUARE TRANSPORTATION CENTER

INFRASTRUCTURE

CR21-032 BUS TERMINAL ESCALATOR REPLACEMENT SGR 4 1,299

1,299

CR21-JOURNAL SQUARE TRANSPORTATION CENTER 1,299

RAIL TOTAL 180,946

PORT COMMERCE

CP05-PORT NEWARK

DREDGING

CP05-120 CONSOLIDATE PROJECT TO 50 FT-NEW JERSEY, PORT JERSEY, AMBEROSE MAND 4 65

652014

PROJECT ID TITLE CATEGORY STAGE BUDGET THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING

SORTED BY DEPARTMENT, FACILITY AND PROGRAM

(In thousands)

INFRASTRUCTURE

CP05-173 BERTH 14 WHARF RECONSTRUCTION SGR 4 13,355

CP05-193 UPGRADE WATER LINES AT NJMT SGR M 3,873

CP05-220 BERTHS 30, 32 AND 34 FENDER SYSTEM UPGRADE SEP 3 3,886

CP05-224 PRIORITY MARINE REPAIRS AT BERTHS 16 TO 24 SGR 4 787

CP05-233 BERTH 3 WHARF RECONSTRUCTION SGR 4 9,409

CP05-238 SANITARY LIFT STATIONS AT NJMT SGR 3 2,937

CP05-246 BERTH 19 REHABILITATION SGR 1 1,000

CP05-249 TRAFFIC SIGNALS AT NJMT SGR 3 3,385

CP05-251 UPGRADE OF ELECTRICAL SYSTEMS IN BUILDING 260 SGR 1 907

39,538

INTERMODAL

CP05-148 EXPRESS RAIL/CORBIN INTERMODAL RAIL SUPPORT - TRACK WORK - PHASE 2A RPP 4 10,671

10,671

ROADWAYS

CP05-156 PORT STREET & BREWSTER ROAD CONNECTOR SEP 4 5,034

CP05-187 PORT STREET CAPACITY AND CORBIN STREET RAMPS IMPROVEMENT SEP 3 1,121

6,156

SECURITY

CP05-124 PORT SECURITY PROGRAM-NJMT-BADGE, ID SYSTEM SEC 3 251

CP05-255 800MHZ SIMULCAST TRUNKED RADIO SYSTEM UPGRADE SEC 3 469

720

CP05-PORT NEWARK 57,151

CP08-ELIZABETH PA MARINE TERMINALS

DREDGING

CP08-111 UTILITIES RELOCATION KVK/NB 50' CHANNEL MAND 4 888

888

INFRASTRUCTURE

CP08-142 CMWP - RE-ROOFING OF MODULAR WAREHOUSE BUILDING 1170 SGR 4 234

234

ROADWAYS

CP08-096 MCLESTER STREET ROADWAY WIDENING SEP 4 5,061

CP08-127 NORTH AVE CORRIDOR IMPROVEMENTS (NACI) SEP 1 500

5,561

CP08-ELIZABETH PA MARINE TERMINALS 6,683

CP09-BROOKLYN MARINE TERMINALS

INFRASTRUCTURE

CP09-108 PIERS CRUISE TERMINAL SHORE POWER SEP 4 6,272

6,272

SECURITY

CP09-085 PORT SECURITY PROGRAM NYMT-BADGE, ID SYSTEM SEC 3 55

55

CP09-BROOKLYN MARINE TERMINALS 6,326

CP11-HOWLAND HOOK

DEVELOPMENT

CP11-056 ROADWAY ACCESS IMPROVEMENTS - EAST BOUND RAMP SEP P 1,500

1,500

DREDGING

CP11-020 ARTHUR KILL CHANNEL DEEPENING 40/41'+2' MAND 4 6,661

CP11-044 UTILITIES RELOCATION ARTHUR KILL 50' CHANNEL MAND 4 888

7,5502014

PROJECT ID TITLE CATEGORY STAGE BUDGET THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING

SORTED BY DEPARTMENT, FACILITY AND PROGRAM

(In thousands)

INTERMODAL

CP11-055 PORT IVORY INTERMODAL TERMINAL (TRACKS 6-7) - PHASE 1B RPP 4 3,393

3,393

CP11-HOWLAND HOOK 12,443

CP16-PORT JERSEY-PORT AUTHORITY MARINE TERMINAL

DEVELOPMENT

CP16-027 GLOBAL TERMINAL DEVELOPMENT RPP 4 58,003

58,003

INTERMODAL

CP16-035 EXPRESS RAIL - INTERMODAL CONTAINER TRANSFER FACILITY AT GREENVILLE YARD RPP M 16,400

16,400

INFRASTRUCTURE

CP16-053 INSTALLATION OF BACKFLOW PREVENTION DEVICES AT PORT JERSEY SOUTH MAND 3 2,654

CP16-059 REPLACE HEATING SYSTEM IN BUILDING 180 IN PORT JERSEY SOUTH SGR 4 1,600

CP16-066 UPGRADE OF PROTECTIVE DEVICES & DISTRIBUTION EQUIPMENT - EAST SUBSTATION SGR 3 2,633

CP16-067 PORT JERSEY SHORELINE PROTECTION SGR 4 7,425

14,311

ROADWAYS

CP16-038 ACCESS IMPROVEMENTS PORT JERSEY RPP 3 6,282

6,282

CP16-PORT JERSEY-PORT AUTHORITY MARINE TERMINAL 94,996

CP17-GREENVILLE YARD/NYNJ RAIL LLC

REGIONAL FREIGHT

CP17-005 INTERMODAL INFRASTRUCTURE AT GREENVILLE YARD RPP P 4,500

CP17-016 INSTALLATION OF SUPPORT TRACKS RPP 3 6,000

CP17-018 RECONFIGURE OFFSITE TRACKS - A-YARD AND TROPICANA RPP 3 2,250

CP17-019 CONSTRUCTION OF NEW BARGE RPP 3 5,000

CP17-027 RECONSTRUCTION OF TRANSFER BRIDGE#10 RPP 3 10,000

CP17-029 PURCHASE OF 3 NEW ULTRA-LOW EMISSIONS LOCOMOTIVES SEP P 3,200

CP17-033 FENDER SYSTEM MODIFICATIONS AT 65TH STREET TERMINAL (CROSS HARBOR) SEP 3 3,646

CP17-034 REHABILITATION OF MOORING CELLS AT NY/NJ RAILROAD SGR P 516

35,112

CP17-GREENVILLE YARDS / NYNJ RAIL LLC 35,112

PORT COMMERCE TOTAL 212,710

REGIONAL CAPITAL PROGRAMS

REGIONAL

CF81-002 NY TRANSPORTATION, ECONOMIC DEVELOPMENT & INFRASTRUCTURE RENEWAL PROGRAM SRP 1 3,500

CF84-008 NJ HUDSON RARITAN ESTUARY PROGRAM SRP 1 2,892

CF85-007 NY HUDSON RARITAN ESTUARY PROGRAM SRP 1 1,300

C F93-001 NY REGIONAL INFRASTRUCTURE RENEWAL PROGRAM SRP 1 15,000

CF94-001 NJ REGIONAL INFRASTRUCTURE RENEWAL PROGRAM SRP 1 15,000

CF99-001 REGIONAL TRANSPORTATION AND ECONOMIC DEVELOPMENT PROJECTS-NY SRP 1 3,375

CF99-003 REGI ONAL DEVELOPMENT FACILITY SRP 1 2,579

CF99-017 ENVIRONMENT LAND ACQUISITION PROGRAM - NY SRP 1 2,000

CF99-022 NEW JERSEY PROJECT DEVELOPMENT FUNDS SRP 1 1,946

47,592

REGIONAL CAPITAL PROGRAMS 47,592

REGIONAL CAPITAL PROGRAMS TOTAL 47,5922014

PROJECT ID TITLE CATEGORY STAGE BUDGET THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING

SORTED BY DEPARTMENT, FACILITY AND PROGRAM

(In thousands)

TUNNELS BRIDGES & TERMINALS

CB02-HOLLAND TUNNEL

INFRASTRUCTURE

CB02-040 REHABILITATION OF TUNNEL VENTILATION SYSTEM MECHANICAL/ELECTRICAL SGR 4 17,877

CB02-123 REPLACEMENT OF PIERS 9/204 SGR 3 5,256

CB02-162 REPLACEMENT FLOOR DRAINS/PIPING OF 4 VENTILATION BUILDINGS SGR 3 1,183

CB02-195 REHABILITATION SUPPLY BLOWER PORTS SGR 3 902

CB02-202 TOLL COLLECTION SYSTEM REPLACEMENT SGR 4 778

CB02-213 REHABILITATION OF OFFSET DUCTS AND MITIGATION OF WATER INFILTRATION TUNNELS SGR P 90

26,087

SECURITY

CB02-184 ACCESS CONTROL SYSTEM ENHANCEMENT SEC 3 687

CB02-200 WATERSIDE BUFFER ZONE PROTECTION SEC 1 1,348

CB02-205 800MHZ SIMULCAST TRUNKED RADIO SYSTEM UPGRADE SEC 3 654

CB02-208 IN-BUILDING RF COVERAGE ENHANCEMENTS SEC 3 1,200

3,890

CB02-HOLLAND TUNNEL 29,977

CB03-LINCOLN TUNNEL

BRIDGE

CB03-211 STRUCTURAL REHABILITATION AND REPAVING OF HELIX SGR 4 21,633

CB03-213 REPLACEMENT OF HELIX - PLANNING SGR 1 1,209

22,842

INFRASTRUCTURE

CB03-093 REPAINTING OF TUNNEL VENTILATION FANS SGR 4 1,777

CB03-167 EXPLOSION PROOF EQUIPMENT AT MID-RIVER PUMP ROOMS SGR 4 2,182

CB03-230 REHABILITATION OF DRUM RINGS AND REPAIRS TO UNDERSIDE OF ROADWAYS SGR 4 857

CB03-231 REPLACEMENT OF VENTILATION LOUVERS IN NY VENTILATION BUILDINGS SGR 4 1,830

CB03-245 DECK REPLACEMENT OF THE NY EXPRESSWAY BTWN W31ST AND W33RD STREETS SGR 3 10,739

CB03-258 REPLACEMENT OF NEW JERSEY FEEDERS-SOUTH TUBE SGR 4 296

CB03-262 REPLACEMENT OF TOLL COLLECTION SYSTEM SGR 4 1,209

18,890

ROADWAYS

CB03-153 REPLACE DYER PLAZA AND DYER AVENUE ROADWAY SLABS SGR 3 528

CB03-244 REPAVING OF CENTER TUNNEL SGR 3 1,241

C B03-280 REPLACE CURB PLATES IN THE NORTH AND SOUTH TUBES SGR 3 825

2,594

SECURITY

CB03-234 NEW YORK BUS RAMP COMPLEX/PROTECTION SEC P 1,201

CB03-252 ACCESS CONTROL SYSTEM ENHANCEMENT SEC 3 3,180

C B03-261 WATERSIDE BUFFER ZONE PROTECTION SEC 1 1,324

CB03-263 TUNNELS BRIDGES & TERMINALS INTEROPERABILITY RADIO COMMUNICATIONS SEC P 1,193

CB03-266 800MHZ SIMULCAST TRUNKED RADIO SYSTEM UPGRADE SEC 3 665

7,563

LINCOLN TUNNEL ACCESS INFRASTRUCTURE IMPROVEMENTS

CB03-267 IMPROVEMENTS TO PULASKI SKYWAY SGR 4 181,001

CB03-268 REPLACEMENT OF ROUTE 7 WITTPENN BRIDGE SGR 4 60,255

CB03-269 EXTENSION OF ROUTE 1 & 9T (NEW ROAD) SEP 4 4,669

245,925

CB03-LINCOLN TUNNEL 297,8142014

PROJECT ID TITLE CATEGORY STAGE BUDGET THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING

SORTED BY DEPARTMENT, FACILITY AND PROGRAM

(In thousands)

CB04-GEORGE WASHINGTON BRIDGE

BRIDGE

CB04-302 REHABILITATION OF HUDSON RAMPS PAVEMENTS SGR 3 3,099

CB04-132 REHABILITATION OF STRUCTURAL STEEL, LEAD PAINT REMOVAL & RECOATING UNDERSIDE SGR 2 2,100

CB04-261 REHABILITATION OF UPPER LEVEL SPAN OVER NJ ANCHORAGE AND HUDSON TERRACE SGR 3 1,373

CB04-270 REHABILITATION OF MAIN SPAN UPPER LEVEL STRUCTURAL STEEL SGR 4 25,988

CB04-272 REHABILITATION OF NY/NJ ANCHOR MAIN CABLE STRANDS SGR 3 6,673

CB04-285 REHABILITATION OF THE PALISADES INTERSTATE PARKWAY HELIX SGR 3 5,542

CB04-287 PRIORITY STEEL AND CONCRETE REHABILITATION SGR 4 696

CB04-300 PAVEMENT REPLACEMENT OF LOWER LEVEL EAST BOUND MAIN SPAN, LLEB APPROACH & RAMPS SGR P 62

CB04-317 REHABILITATION OF CENTER AVE BRIDGE AND LEMOINE AVE BRIDGE SGR 1 2,033

CB04-319 REHABILITATION OF SUSPENDER ROPE REPLACEMENT & MAIN CABLE SGR 1 5,012

CB04-333 FACILITY STEEL AND CONCRETE REHABILITATION SGR 4 2,889

CB04-336 REHABILITATION OF TME OVERPASSES - PHASE 1 SGR P 246

CB04-375 MAIN CABLE PROTECTION SEC P 575

56,288

INFRASTRUCTURE

CB04-228 REHABILITATION OF MAIN SPAN FIRE STANDPIPE SYSTEM SGR 4 5,492

CB04-252 NJ ANCHORAGE IMPROVEMENTS SGR 3 1,790

CB04-262 REPLACEMENT OF IMPACT ATTENUATORS GUIDE RAILS & BARRIERS SGR 4 3,119

CB04-288 TME REHABILITATION OF MEDIAN BARRIERS AND TRAFFIC SAFETY IMPROVEMENTS SGR 3 605

CB04-306 CMWP - REPLACEMENT OF PASSENGER ELEVATOR AT GWB NJAB MAND 4 430

CB04-312 UPGRADE/REPLACE ITS SIGNS AND FIELD DEVICES SGR M 5,550

CB04-323 REPLACEMENT OF NJ BUILDINGS & MIS STRUCTURES SGR 4 619

CB04-343 REHABILITATION OF NJ ANCHORAGE SUMP PUMP ROOM SGR 1 295

CB04-361 REHABILITATION OF FACILITY WIDE PRIORITY SGR 1 433

18,332

ROADWAYS

CB04-258 FORT LEE STREET IMPROVEMENTS SGR 4 1,972

C B04-260 TOLL COLLECTION SYSTEM REPLACEMENT SGR 4 2,682

CB04-276 REHABILITATION OF 178TH &179TH STREET RAMPS, BUS RAMPS, AND BUS TURNAROUND SGR 3 2,808

CB04-316 REPLACEMENT OF DRAINAGE SYSTEMS TROUGHS AT UPPER LEVEL NY RAMP TO EXPRESSWAY ROADWAYS SGR 4 529

CB 04-351 ACCESS RAMP BARRIER UPGRADES SEC P 807

CB04-362 GWB REPAVE EASTBOUND UPPER LEVEL SGR 3 500

9,298

SECURITY

CB04-318 ACCESS CONTROL SYSTEM ENHANCEMENT SEC 3 5,690

CB04-357 800MHZ SIMULCAST TRUNKED RADIO SYSTEM UPGRADE SEC 3 732

6,421

CB04-GEORGE WASHINGTON BRIDGE 90,339

CB06-BAYONNE BRIDGE

BRIDGE

CB06-087 NAVIGATIONAL CLEARANCE PROGRAM SEP 4 233,827

233,827

INFRASTRUCTURE

CB06-113 TOLL COLLECTION SYSTEM REPLACEMENT SGR 4 11,224

11,224

SECURITY

CB06-100 CCTV CAMERA SYSTEM REPLACEMENT SEC 4 296

296

CB06-BAYONNE BRIDGE 245,3482014

PROJECT ID TITLE CATEGORY STAGE BUDGET THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING

SORTED BY DEPARTMENT, FACILITY AND PROGRAM

(In thousands)

CB07-GOETHALS BRIDGE

BRIDGE

CB07-103 GOETHALS BRIDGE MODERNIZATION SGR 3 50,617

CB07-139 STRUCTURAL STEEL REPAIR SGR 4 751

CB07-145 INTERCHANGE RAMPS PROJECT SEP 1 2,153

53,521

INFRASTRUCTURE

CB07-149 REPLACEMENT OF TOLL COLLECTION SYSTEM SGR 4 778

778

SECURITY

CB07-134 REPLACEMENT OF CCTV CAMERA SYSTEM SEC 4 1,463

CB07-152 800MHZ SIMULCAST TRUNKED RADIO SYSTEM UPGRADE SEC 3 517

1,980

CB07-GOETHALS BRIDGE 56,279

CB08-OUTERBRIDGE CROSSING

BRIDGE

CB08-099 REPAIR OF STRUCTURAL STEEL SGR 4 2,132

CB08-115 CROSS BRACING SEC P 865

2,997

INFRASTRUCTURE

CB08-083 TOLL CANOPY - REPLACEMENTS OF HVAC UNITS AND ROOF SGR 4 1,712

CB08-110 REPLACEMENT OF TOLL COLLECTION SYSTEM SGR 4 648

2,360

ROADWAYS

CB08-107 REHABILITATION OF PAVEMENT SGR 4 5,468

5,468

SECURITY

CB08-097 REPLACEMENT OF CCTV CAMERA SYSTEM SEC 4 1,062

CB08-109 MAIN SPAN PIER PROTECTION SEC 1 700

1,762

CB08-OUTERBRIDGE CROSSING 12,587

CB48-GEORGE WASHINGTON BRIDGE BUS STATION

INFRASTRUCTURE

CB48-056 GWBBS REDEVELOPMENT RPP 3 51,228

51,228

SECURITY

CB48-061 INSTALLATION OF BOLLARDS SEC P 337

337

CB48-GEORGE WASHINGTON BRIDGE BUS STATION 51,565

CT06-PORT AUTHORITY BUS TERMINAL

INFRASTRUCTURE

CT06-120 REPLACEMENT OF BUILDING AUTOMATED MONITORING & CONTROL SYSTEM SGR 4 6,712

CT06-199 REPLACEMENT OF FIRE PUMPS SGR 4 2,029

CT06-200 REPLACEMENT OF FIRE ALARM SYSTEM MAN D 3 2, 356

CT06-202 REPLACEMENT OF PRIMARY ELECTRIC SERVICE SGR 4 4,410

CT06-230 REPLACEMENT OF SOUTH WING HVAC UNITS AND ASSOCIATED ELECTRICAL DISTRIBUTION SYSTEM SGR 4 7,595

CT06-247 CMWP - REHABILITATION OF THE STEAM DISTRIBUTION SYSTEM SGR 4 133

CT06-259 PABT NO RTH WING SUBURBAN BUS LEVEL WEARING COURSE REPLACEMENT SGR 3 184

23,4192014

PROJECT ID TITLE CATEGORY STAGE BUDGET THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

2014 CAPITAL SPENDING

SORTED BY DEPARTMENT, FACILITY AND PROGRAM

(In thousands)

SECURITY

CT06-239 INTERNAL STRUCTURAL ENHACEMENTS SEC P 1,067

CT06-241 UPGRADE OF CCTV SURVEILLANCE EQUIPMENT SEC P 1,602

CT06-246 ENHANCEMENT OF ACCESS CONTROL SYSTEM SEC 3 1,700

CT06-266 800MHZ SIMULCAST TRUNKED RADIO SYSTEM UPGRADE SEC 3 874

5,243

CT06-PORT AUTHORITY BUS TERMINAL 28,662

TUNNELS, BRIDGES & TERMINALS TOTAL 812,569

WORLD TRADE CENTER

R12 WTC TRANSPORTATION HUB MAND 4 552,129

W11 WTC INFRASTRUCTURE MAND/SEC 4 708,561

W30 WTC RETAIL REDEVELOPMENT RPP 4 400,000

W31 ONE WORLD TRADE CENTER RPP 4 666,297

W32 TOWER 2 MAND 4 5,000

W34 DESIGN, CONSTRUCT AND BUILD OUT PA CORP OFFICES (4 WTC) MAND 3 66,211

WORLD TRADE CENTER TOTAL 2,398,198

PROVISIONS

PA-PROV CAPITAL MAJOR WORK PROVISIONS SGR 1 20,000

TSD-PROV TECHNOLOGY REQUIREMENT PROVISION SGR 1 2,000

22,000

CAPITAL CONTINGENCY 150,000

150,000

PROVISIONS TOTAL 172,000

AGENCY TOTAL 4,384,508

# Appendices

February 19, 2014

### Aviation

Port Commerce Development Tunnels, Bridges & Terminals NYNJ RAIL 51ST STREET YARD

NYNJ RAIL 65th STREET YARD



### Port Authority Trans-Hudson Legend:

International Business Development Representatives in Hong Kong, London, Shanghai and Tokyo G A R D E N S T A T E P A R K W A Y A T L A N T I C C

I T Y

E X P R E S S W A Y Galloway

Absecon

ATLANTIC CITY

AT LANTIC

OCEAN ATLANTIC ATLANTIC CITY

AIRPORT

Egg Harbor Township GARDEN STATE PARKWAY ATLANTIC CITY EXPRESSWAY N E W Y O R K S T A T E T H R U W A Y

West Point Beacon Poughkeepsie

NEW YORK

Newburgh STEWART

INTERNATIONAL

AIRPORT

ROCKLAND ORANGE ULSTER

WESTCHESTER PUTNAM DUTCHESSNEW YORK STATE THRUWAY

87 84 

## APPENDIX A: AGENCY OVERVIEW

PORT AUTHORITY OF NEW YORK-NEW JERSEY FACILITIES

## Passaic Sussex

0

0 10

10 Mi

Km 

## Monmouth Middlesex Morris

Essex

Hudson 

## Bergen

Union

S o m

e

r s e t 

## Rockland

Westchester

Brooklyn Queens Bronx

Staten
Island Manhattan 

# N J N Y C T

Nassau



# Port District PORT DISTRICT

Population 18.3 Million (2013)

Labor Force 9.1 Million (2013)

Source: Moody's

# ORIGINS

History

The Port Authority of New York and New Jersey (the “Port Authority”) was established by

Compact between New York and New Jersey on April 30, 1921, as the first interstate agency

created under the clause of the United States Constitution permitting compacts between states

with the consent of Congress. The Compact also created the Port District, an area of about 1,500

square miles in both states, centering about New York Harbor. Over the years, the mandate of

the agency has developed to promote and protect the commerce of the bistate port and to

undertake port and regional improvements not likely to be financed by private enterprise or to be

attempted by either state alone: modern wharfage for the harbor shared by the two states, tunnel

and bridge connections between the states, terminal and transportation facilities and, in general,

trade and transportation projects to promote the region’s economic well

- being.

Governance

The Governor of each state appoints six Commissioners to the agency’s Board of

Commissioners, for overlapping six year

- terms; each appointment is subject to the approval of

the respective state senate. Commissioners serve as public officials without remuneration. The

Governors retain the right to veto the actions of the Commissioners from their respective state.

The Port Authority undertakes projects and activities in accordance with the Port Compact of

1921 and amendatory and supplemental bistate legislation. An Executive Director, appointed by

the Board of Commissioners, is responsible for managing the operation of the Port Authority in a

manner consistent with the agency’s policies, as established by the Board. The Executive

Director and the individual directors are responsible for operating within the budget and cap ital

plan authorized by the Board of Commissioners by monitoring and controlling the fiscal

performance of the Port Authority and its departments.

## THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY

Organization Chart

### Key Organ ization Functions

GENERAL COUNSEL

-- provides centralized management in connection with legal representation of Port Authority and its wholly owned corporate entities; oversees all practice areas within the Law Department

, including corporate, litigation , risk management & corporate security and procurement

.

INSPECTOR GENERAL

-- p romotes integrity, economy and efficiency in the Port Authority and its subsidiary corporations, as well with third

- party individuals or organizations doing business with the Port Authority through its Office of Investigations and Audit Department

, each responsible for critical aspects of Port Authority’s corruption prevention and compliance efforts.

SECRETARY

-- serves as liaison with Chairman and membe rs of Board and provides support to Chairman, Board of Commissioners, and Executive staff in order to effectuate agency’s critical business objectives, while ensuring that agency is conducting its business in accordance with Agency’s By

- Laws, statutory authority and Board policies.

CHIEF ENGINEER

-- acts as corporate advisor to Executive Director and is the technical authority for structural integrity and code compliance, principal authority on engineering matters, and responsible to Executive Director for ensuring that all existing and new Port Authority facilities are structurally sound, safe, and in conformance with applicable codes and Port Authority technical standards.

CHIEF, REAL ESTATE & DEVELOPMENT

-- manages and coordinates all real estate issues and business relationships associated with development of World Trade Center and Port Authority’s other major re al estate development initiatives

, including Bathgate Industrial Park, Essex County Re source Recovery Facility, Ferry Transportation, Industrial Park at Elizabeth, The Legal Center, The Teleport, Queens West Waterfront Development and South Waterfront at Hoboken

.

CHIEF, PUBLIC & GOVERNMENT AFFAIRS p rovides executive guidance to establish agency’s public agenda and oversees and coordinates work of Media Relations, Marketing Communications, Special
Events, Audio

- Visual/Photography, Employee Communications and Government and Community

Relations.

CHIEF FINANCIAL OFFICER

-- oversees financial operations of Port Authority, including developing, implementing, and monitoring agency wide policies and strategies governing investments, financing, resource planning, budgeting, capital planning, accounting, performance measurement, analysis, financial analysis and financial controls as well as technology services.

CHIEF HUMAN CAPITAL

-- supports the agency’s human resources efforts in the areas of compensation, benefits, talent management, recruitment, testing and assessment, metrics, occupational
health services, servic e delivery, EEO compliance, diversity and inclusion, and labor relations, including

neg otiations for 24 unions across the Port Authority and PATH

.

CHIEF OPERATING OFFICER

-- oversees and ensures safe, efficient, secure and economically sound operation of Port Authority aviation, bus, tunnel, bridge, commercial and maritime facilities, and Port Authority Trans Hudson Corporation (PATH); and establishes and maintains consistent and best practice standards and procedures for management of agency’s Capital and Operating Major Works projects.

CHIEF, CAPITAL PLANNING

-- responsible for oversight of the capital program and the development of strategies, business practices and supporting systems that will increase the value of Port Authority capital investment including World Trade Center Construction

, Environmental & Energy Programs , Business Diversity and Civil Rights

, Planning & Regional Development and Office of Strategic Initiatives.

CHIEF SECURITY OFFICER

-- responsible for oversight of centralized security and public safety functions, programs, resources, and personnel to include the Port Authority Police Department, WTC Security, the Office of Emergency Management, Security Project Management Department.

### APPENDIX B: ECONOMIC OUTLOOK



## REGIONAL ECONOMIC BACKDROP

The Port Authority bolster s the regional economic livelihood through infrastructure that support and

strengthen commerce and economic development. Its assets include the major New York /New Jersey

airports, marine terminals and ports, the PATH rail transit system, the six bridges and tunnels connecting

New York and New Jersey, as well as bus terminals, and the Wor ld Trade Center (WTC) site in

Manhattan.

The P ort A uthority is a linchpin in the regional economy, annually moving millions of people, and millions

of tons of cargo on its network of aviation, rail, surface transportation, and seaport facilities. P ort

Au thority airports handled 10% of the US aviation passenger traffic and 16.4% of US air cargo volume.

P ort A uthority assets on the average now support more than 500,000 regional jobs, $23 billion in annual

wages and $80 billion in regional economic activit y.

The Great Recession of 2008/2009, coupled with the emerging evidence of structural changes in national

and regional economic activity and shifts in business and consumer behavior patterns , ha ve had an

impact on traditional agency activity and revenues streams

.

Given the scope of the Port Authority’s operation and the magnitude of its impact on the regional

economy, the agency continuously monitor s the regional, national, and international economic trends as it

moves through the annual process of developing its budget.

National Trends

Since the official end of the Great Recession in 2009, the national economy has been slowly healing and

positioning itself for stronger growth in the near term. In particular, the last 12 months have seen GDP

growth averaging 2.0 percent with most recent quarterly economic growth at 4.1 percent . Yet, the story of

economic recovery is beset by challenges brought on by the problems in the Eurozone, disagreements

over USA domestic fiscal policy, and weak er growth in emerging market economies such as India and

China. In addition, structural concerns such as a lack of income growth and rising income inequality

further cloud the picture of sustained future recovery of the national economy.

A main contributor to economic growth has been the US consumer sector, supported by a more buoyant

housing market. Despite many setbacks, US households have continued to spend in line with their

aggregate income gains, and their strengthening financial position due to deleveraging and strong stock

market gains. Some pent

- up demand in the form of growing demand for vehicles – the average age of

the US car fleet is now roughly a year older than prior to the Great Recession - and resurging growth in

household formation which had all but stopped five years ago have contributed to the upswing in growth.

### Housing, and in particular the recovery of real estate prices across the country, may be the sector that is

largely responsible for the uptick in consumer spending. The 20

- year City Case -S hiller Index has

increased nearly 20 % since its trough in early 2012. Home mortgage rates continue to be close to all

time lows despite a recent increase in Treasury rates. Building activity has improved, but there remain

imbalances even in housing as gains in some regional markets may again signal the emergence of a

“price bubble”. Nearly 50% of all real estate transactions are in cash, up from average historic rates that

are closer to 25%. Nevertheless, many households are no longer under water on the ir loans with market

value of their asset now exceeding the value of their outstanding mortgage; these households as a result

have some flexibility to refinance, sell, or relocate to seek out new employment opportunities in other

parts of the country.

On the downside, the budget cuts in the form of sequestration and the October 2013 government

shutdown have reduced economic growth throughout the last year. While the shutdown likely cost the

economy billions of dollars in lost productivity and output, tigh t fiscal policy may also restrain GDP growth

next year and beyond. Moreover, with the current government fiscal deal providing a bit more spending

relief, there may actually be a positive impact on aggregate spending in 2014

.

Conditions in the Eurozone appear to have stabilized and even Greece is showing some signs of

recovery. An exit by any one country from the Eurozone now seems unlikely. The broader global

slowdown negatively affected emerging market economies but these same economies now seem

pos itioned to resume more healthy growth in the near future.

Employment levels in the domestic labor market have nearly returned to where they were prior to the

financial crisis. The unemployment rate has fallen below 7% and monthly net employment gains measure

190,000 on average for 2013. While unemployment rates across the board have come down, problems - 2.0 - 1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0Jan-10Mar-10May-10Jul-10Sep-10Nov-10Jan-11Mar-11May-11Jul-11Sep-11Nov-11Jan-12Mar-12May-12Jul-12Sep-12Nov-12Jan-13Mar-13May-13Jul-13 

## Real US GDP %

### of high and long

- term unemployment among workers persist. In addition, other groups of workers such

as older individuals who have been laid off for longer stretches of time and even young workers relatively

new to the work force seem to be having a hard time finding work even in a recovering economy.

On another front, the positive correlation between economic growth and national driving trends, as

measured by vehicle

- miles

- travelled (VMT), appears noticeably to have been weakening since sometime

around 2007. In fact, while GDP has recovered quite strongly in recent years, national VMT has

remained flat. The reasons for the decoupling of surface travel from economic output and employment

metrics are complex and require further research. Recent changes in demographics, driver behavior and

changes in logistics patterns affecting both heavy and light trucks all bear some responsibility for this

trend. The change in this relationship reflects the structural changes we have been experiencing, and it is

of great importance to the Port Authority because of the importance of vehicular traffic across its bridges

and tunnels to agency revenues, which reflects the structural changes in the regional economy

.

Regional Trends

The P ort A uthority economic region draws its strength from the vast, densely populated local consumer

base and its attractiveness for tourists and visitors from all over the world. These features allow the New

York

- New Jersey area to remain a premier metropolitan region and gateway in the United States. The

regional economic recovery has been slightly ahead of the national economy in terms of the gains in

output and employment post

- recession. In the 18

- county Port District, output growth for 2013 likely

exceeded 3 percent, which is significantly higher than for the nation. Consumer spending has been

strong in New York City and surrounding counties in part a result of record tourism activity in the Greater

New York area. 0 2 4 6 8 10 12

124,000 126,000 128,000 130,000 132,000 134,000 136,000 138,000 140,000Jan-08May-08Sep-08Jan-09May-09Sep-09Jan-10May-10Sep-10Jan-11May-11Sep-11Jan-12May-12Sep-12Jan-13May-13 

## US Labor Market

Total US Nonfarm Employment [Left]

Unemployment Rate (U

- 3) [Right]

### T otal employment levels now exceed the pre

- crisis levels, a recovery especially driven by the stron g

employment growth in the five counties making up New York City. The city has seen record employment

growth in 2012 and experienc ed similar trends in 2013. The New Jersey counties, making up the other

half of the Port District and initially lagging behind national and New York recovery indicators, now exhibit

gains in employment and a general improvement of economic conditions. The regional unemployment

rate has been consistently higher than its national counterpart though. On the one hand, t his is due to the

slower employment recovery in NJ counties, on the other hand this is the result of a higher labor force

participation rate in New Jersey.

Despite the overall positive trends

, employment gains appeared to be tempered by the fact t hat the

recovery has occurred in economic sectors that are quite different from the ones that lost most of the jobs

during and after the Great Recession. The finance, insurance, brokerage and banking sectors, which

have been major contributors to regional income at a rate disproportionately high compared to their share

of employment, have been very severely affected

, and have continued to show lackluster growth. Sectors

such as leisure and hospitality, tourism, healthcare, and professional business services, i.e. not the

traditional office based sectors of the regional economy, have shown very strong gains across the board.

Healthcare for instance did not experience any declines in employment even during the 2008/2009 crisis.

These shifts in industry composition in the region could affect traffic volumes at P ort A uthority bridges and

tunnels. S ectors such as finance, insurance and banking have typically been a large portion of the local

bridge and tunnel

- commuting base. However, growth in these sectors has slowed, while it has been

picking up in other sectors such as leisure and hospitality, tourism and professional business services,

which have a lower incidence of automobile commuting. 90 92 94 96 98 100 102 104 106 108 1102005 Q12005 Q22005 Q32005 Q42006 Q12006 Q22006 Q32006 Q42007 Q12007 Q22007 Q32007 Q42009 Q32009 Q42010 Q12010 Q22010 Q32010 Q42011 Q12011 Q22011 Q32011 Q42012 Q12012 Q22012 Q32012 Q42013 Q12013 Q22013 Q3Index (100=2005 Q1) 

## Regional Employment Trends

NY Counties NJ Counties Total PA Region

# APPENDIX C : BUDGET PROCESS AND FINANCIAL POLICIES

The Port Authority’s annual budget is prepared on a basis consistent with the Port Authority’s By

Laws. The Board approves an annual expenditure budget comprised of operating expenses,

debt service, gross capital expenditures and other expenditures such a s heavy vehicles and

computer systems that are deferred and amortized in future periods. The Board also approves

the long

- term strategic plan and updated capital plan of the agency, and approves amendments

to the current year budget as necessary.

A Unifi ed Planning Process

Each year, in conjunction with the development of its annual budget, Port Authority staff

undertakes a comprehensive planning process designed to ensure that the agency is consistently

moving towards achieving long

- term goals. Over the past years, the Port Authority has worked to

unify this process by coordinating the development of business plans, capital programs, and the

annual budget. This unified planning model allows the agency’s long

- term Strategic Plan to have

a greater impact on each aspect of agency operations. The goals identified in the Strategic Plan

are incorporated into both departmental business plans and the agency’s capital program. In

turn, business and capital plans drive resource allocation decisions.

Developing the Budget

Typically, the budget process begins with the scanning process. This involves an effort on the

part of Executive Director and senior staff to understand the economic outlook and the

environment in which the agency will be operating in the coming years. This information is then

used to re

- assess agency priorities and develop short

- term strategies in line with agency

- wide

goals. The Executive Director’s office then issues planning and budget guidance that includes

agency wide priorities, the regional planning context, and budget targets for each department.

This guidance informs the development of department business and work plans, the capital

program, and the budget for the coming year. (This process is sometimes more formal and

includes an Executive Director’s planning session for senior staff and agency

- wide budget

planning guidance by the Executive Director or sometimes less formal through the issuance of

economic bulletins and scheduling of economic outlook webinars by Planning Department as well

as dissemination of budget guidelines directly by Management and Budget Department.)

Line Departments, the five departments that reflect the Port Authority’s major lines of business

(Port Commerce, Aviation, PATH, and Tunnels, Bridges, and Terminals, and Development), are

asked to submit business plans that identify department wide strategies and initiatives, both

operating and capital, that reflect over

- arching agency goals and take into account the planning

context and priorities identified by the Executive Director. Similarly, staff departments, which

support the agency’s major lines of business, submit work plans that identify the ways in which

### these departments will help line businesses achieve agency

- wide goals given the pre

- established

regi onal planning context. The Planning Department and the Management and Budget

Department, in consultation with the Executive Management Team, provide feedback on

departmental business/work plans as they are finalized.

In conjunction with incorporating agency feedback into finalized business/work plans,

departments develop updated capital project lists and budget proposals. Once these have been

submitted, the Management and Budget Department assesses the financial impact of the

submissions and works with the executive offices and the departments to finalize a budget and

capital plan that meets agency and department goals within the financial constraints of the

agency. Following repeated review and analysis throughout the department, a final budget

proposal is presented to the Board of Commissioners for approval. Once approved, the budget is

presented to the public. In general, this is a 12

- month process and follows the calendar shown

below. When circumstances warrant, the process may be extended.

Basis of Budgeting

Revenues and expenses are budgeted in an enterprise fund using the accrual basis of

accounting (excluding interdepartmental rents). The budgeted Revenues and Reserves

schedule is prepared purs uant to Port Authority bond resolutions and differs in some respects

from accounting principles generally accepted in the United States, with the primary difference

being the inclusion of principal and interest payments on outstanding Port Authority debt in lieu of

depreciation and amortization related to capital investment. This is intended to demonstrate to

the bondholders that the agency is generating sufficient cash flows to meet current and future

debt service. For presentation purposes, budgeted net income is also calculated on a basis

consistent with generally accepted accounting principles. The Management and Budget

SCANNING NOV DEC JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT NOV DEC

Executive Economic Review Planning Context 25-Feb Economic Variable Updates

GUIDANCE NOV DEC JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT NOV DEC

Business Plan Guidelines 22-Apr Budget Guidance

WORKPLANS/BUSINESS PLANS NOV DEC JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT NOV DEC
Workplans-Staff (operating & capital) 15-Jun Business Plans-Line (operating & capital) 1-Jul

CAPITAL PLAN UPDATES NOV DEC JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT NOV DEC
Draft Project List 1-Jul Final Project List

OPERATING & CAPITAL BUDGETS NOV DEC JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT NOV DEC
Staff Department Drafts 15-Jun Line Department Drafts 1-Jul Final Budgets

REPORTING NOV DEC JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT NOV DEC

Board Presentations

Public Presentations
Approval of Budget and Updated Capital Plan
Release of Budget Book

### Department prepares periodic financial reports, designed to inform all levels of executive

management and individual directors, that measure and discuss actual and projected

performance against budget and the capital plan. Financial reports are also presented to the

Board of Commissioners that concisely describe the operating and capital results and financial

position of the agency as a whole, highlight exceptions or significant changes impacting the

agency’s financial condition, and to suggest areas where management action may be necessary.

Financial Policies

The Port Authority is financially self

- sustaining and must raise the moneys necessary to operate

its facilities and provide services to the public at large through tolls, fares, rentals and other user

charges. Funds needed for capital improvements, construction and acquisition of facilities are

raised on the basis of the Port Authority’s own credit rating. The Port Authority cannot pledge the

credit of either of the States of New York and New Jersey or any municipality, nor can it levy

taxes or assessments.

Within the context of programmatic agency

- wide objectives, the Port Authority has established

various financial measures designed to ensure that the agency is able to sustain its projects, plan

for the future, and fund debt service. The Port Authority maintains two Reserve Funds, the

General Reserve Fund and Consolidated Bond R eserve Fund, which were established in

accordance with applicable laws and statutes. The agency has set specific targets for the Times

to Debt Service Earned ratio, monies contained in the General Reserve Fund and the Operating

Ratio.

The General Reserve Fund is pledged in support of Consolidated Bonds and Notes. Statutes

which required the Port Authority to create the General Reserve Fund established the principle of

pooling revenues from all facilities and require that the Port Authority apply surplus revenues from

all of its existing facilities to maintain the General Reserve Fund in an amount at least equal to

10% of the par value of outstanding bonds legal for investment.

The balance remaining of all net revenues of the Port Authority's existing facilities after deducting

payments for debt service upon all Consolidated Bonds and Notes and the amount necessary to

maintain the General Reserve Fund at its statutorily required amount, is to be paid into the

Consolidated Bond Reserve Fund, which is pledged as additional security for all outstanding

Consolidated Bonds and Notes. Consolidated Bonds and Notes have a first lien upon the net

revenues (as defined in the Consolidated Bond Resolution) of all existing facilities of the Port

Auth ority and any additional facility financed by Consolidated Bonds.

Other asset obligations (versatile structure obligations, commercial paper obligations, variable

rate master notes, and Interest Rate Exchange Contracts (swaps) executed after 2005), and th e

interest thereon, are not secured by or payable from the General Reserve Fund. Principal of, and

### interest on, other asset obligations are payable solely from the proceeds of obligations issued for

such purposes or from net revenues paid into the Consolidated Bond Reserve Fund and, in the

event such proceeds or net revenues are insufficient therefore, from other moneys of the Port

Authority legally available for such payments. Operating asset obligations (equipment notes,

Interest Rate Exchange Contracts (swaps) executed prior to 2005, and the Fund buy

- out

obligation) are paid in the same manner and from the same sources as operating expenses.

Special Project Bonds are not secured by or payable from the General Reserve Fund or the

Consolidated Bond Reserve Fund.

The Port Authority has a long

- standing policy of maintaining total reserve funds in an amount

equal to at least the next two years' bonded debt service on outstanding debt secured by a

pledge of the General Reserve Fund. The moneys in the reserve funds may be accumulated or

applied only to purposes set forth in legislation and the agreements with the holders of the Port

Authority’s obligations pertaining thereto.

Debt Management Policies

The Port Authority follows specific criteria when dealing with debt management, financing capital

construction at the agency’s facilities or refunding existing obligations. It does so by closely

monitoring and controlling the flow of Variable Rate Master Notes, Commercial Paper, Equipment

Notes, and Special Project Bonds. These debt management criteria are described in more detail

below:

• Variable Rate Master Notes - Cannot be issued if the resulting aggregate principal

amount at any one time outstanding is in excess of $400 million.

• Commercial Paper - Cannot be issued if the resulting aggregate principal amount at any

one time outstanding is in excess of $500 million ($300 million for Series A and $200

million for Series B).

• Port Authority Equipment Notes - Proceeds are to be used in connection with the

purchase of certain equipment by the Port Authority, to refund certain obligations issued

by the Port Authority in connection with the purchase of equipment and for incidental

purposes, including certain cost of such note obligations. These notes cannot be issued if

the resulting aggregate principal amount at any one time outstanding is in excess of $250

million.



## • Special Project Bonds - Issued only for the purpose of providing funds for a single project

for a lessee or for the purpose of refunding all or any part of a prior series of Special

Project Bond obligations. These bonds shall not be issued in an amount that is greater

### than the amount determined by the Port Authority to be necessary to accomplish the

purpose for which such Series of Special Project Bonds is is sued.A ppendix D : Strategic Performance

MISSION:
To identify and meet the critical transportation infrastructure needs of the bistate region's businesses, residents, and visitors: providing the highest quality, most efficient transportation and port commerce facilities and services that move people and goods within the region, providing access to the rest of the nation and to the world, while strengthening the economic competitiveness of the New York

- New Jersey Metropolitan Region.

GOALS PROJECTS 201 3 MAJOR OUTCOMES 201 4 PROJECT MILESTONES 2014

BUDGET PROJECT DELIVERABLES

Building the Region and Investing in

the Future World Trade Center Redevelopment Completed steel and spire for 1 WTC making it the tallest building in

North America Completed the Memorial Pavilion and Museum shell to enable the

start of final fit out and installation of artifacts Began erection of the iconic “bird in flight” steel for the Transportation Hub above grade Oculus Structure Opened the Hub West Connector over two years ahead of schedule Open One World Trade Center Open the 9

- 11 Memorial Museum to the public Open portions of the Hub Oculus a year early to enable commuters to move through the eastern portion of the

site Open Platform A to the public Open VSC for use Open Four World Trade Center $2 B One World Trade C enter; WTC Memorial & Museum; Lower Manhattan Transportation Hub which will become the third largest transportation hub in New York, Vehicle Security Center, Liberty Park Common infrastructure; And completed streets and integrated Campus Security Plan

LGA Central Terminal Building and

Infrastructure Redevelopment · Meetings stemming from innovative procurement method of Collaborative Dialogue, a method which facilitated the agency in evaluating proposals

- Parking lot consultant recommended methods of mitigating shortage of parking spaces

- Pile driving and duct bank construction on East end Substation - Valet parking lot to decrease congestion

- Complet ion of pile driving and duct bank work at East

End Substation.

- Progress on contract for buildings, equipment and

feeders for the East End Substation $ 98 M · State

- of

- the

- art facility for domestic air travel.

Goethals Bridge Replacement · Project Authorization from Board for Design, Build, Finance, Maintain (DBFM) project

- Awarded DBFM contract

· Coordinated with Federal Highway Administration · Right

- of

- way (ROW) land acquisitions · Complete ROW parcel acquisition for NJ and NY properties

- Notice to Proceed for full construction in 2Q

- 2014. $52 M · A new, 900

- foot bridge including six 12

- foot wide

lanes and outer and inner shoulders

Bayonne Bridge
Navigational
Clearance Program • Project Authorization and Construction Award April 2013

• USCG Bridge Permit May 2013

• Start of Construction June 2013

• Completed pier foundation load test drilled shafts (NY and NJ)

• Toll Plaza Modifications complete

• Established single

- lane bridge operation, and began east side bridge demolition

• Steel arch lead paint abatement and repainting • Complete NB roadway bridge demo; and construct new piers

• Erect 22 of 26 NB concrete spans

• Erect NY and NJ Arch towers and new arch portals

• Complete new electrical rooms and M & E buildings (NY / NJ)

• Erect new steel hangers, floor beams, and steel framing for new elevated roadway at 215’

elevation $ 242 M Removal of the 151

- fo ot navigational clearance utilizing innovation construction staging that will maintain vehicular traffic during construction. Reconstruction and rehabilitation of the existing Bayonne Bridge including provision of 12

- foot travel lanes, shoulders, median safety divider,
acceleration and deceleration lanes, a widened

15

- foot walkway, and provision for future transit

corridor.

EWR Terminal A Replacement · Revised planning to focus on reducing square footage and to meet gate needs in head house area

- Assessed impacts on design from revised FEMA maps and developed documentation for Department of Environmental Protection for concurrence on final design elevation - Planning designs

- Landside post

- planning efforts $7 M · State

- of

- the

- art facility for domestic air travel.

Moving

Travelers and

Commuters PATH New Car Purchase Program · 16% of the new PA

- 5 railcars were damaged from Superstorm Sandy. All were repaired and are back in service except for a few still undergoing final testing. - Previously identified car modifications by Kawasaki

- Monitor Kawasaki’s performance on cars still under warranty, while PATH assumes such duties for cars coming off warranty $ 7 M - Remaining cars damaged by Superstorm Sandy to be put back into service

- More cars coming off warranty, with implementation of PATH staff assuming warranty responsibili ties

PATH Signal System Replacement Program - Major damage incurred from Superstorm Sandy impacted progress, but both repairs and progress on the new system proceeded throughout the year - Proceed with i nstall ation of new signal bungalows

- Complete delivery of ATC signal equipment for

installation at Hoban Control Center

- Co ntinue testing of ATC system on Test Track $ 52 M - M ake sufficient progress to comply with FRA requirement for PTC by 2015

- Increase capacity by 20% when fully deployed by providing for shorter headways

Connecting Cargo to

Customers Harbor Deepening Program (HDP) Awarded Contracts to Deepen Arthur Kill area 3, Shoal Removal

area S

- SR

- 1 and 2. - Proceed with completion of Deepening AK3, S

- SR1

and 2.

- Resume NYCDEP Water Siphon’s excavation in Feb

2014 and associated deepening of Anchorage channel to be completed 1 st Quarter 2015. $9 M · Improved navigational safety. · Increased capacity to accommodate future cargo

vessels.

Port Commerce

Infrastructure Program - Reconstruction of Berth 6 completed following structural

failure

- Awarded contract for Berth 14 reconstruction

- Commenced construction on Berth 3 reconstruction project

- Rail layout schematics completed for all PCD facilities - Continue all berth reconstruction projects

- Continue replacement of water lines at NJMT

- Upgrade sanitary lift stations

- Repair/replace traffic signals

- Upgrade electrical systems at PCD admin bldg

- Complete shoreline protection projects

- Complete development of wharf asset
management system $48 M · Reduced maintenance costs. · Expanded capacity.

· Code complianceAPPENDIX D (Cont’d) Strategic Performance

GOALS PROJECTS 201 3 MAJOR OUTCOMES 2014 PROJECT MILESTONES 2014

BUDGET PROJECT DELIVERABLES

Intermodal Rail Program · Progress continued on construction for entire system · Proceed with construction with goal of completion of project by the end of 2016. $30 M · Comprehensive rail system with on -dock

intermodal facilities for all marine terminals.

Advancing Security & Sustainability Throughout the Region PATH Safety and Security Projects ·P ATH T rain C ontrol C enter and 800MHz system installation complete

.

· Power washing in south wall of Tunnel E for post

- Sandy latent salt damage was completed and continues to progress for north wall

- Steel plate installation on the south wall of Tunnel E is c omplete · Proceed with installation of steel plates and of portals in

Tunnels E and F

- Environmental pilot for removal of portions of duct bank

at five locations in Tunnels A and B $2 8 M · Enhanced tunnel security · Increased operational safety

Port Commerce Security Program - Completed CCTV Phase III

- (additional cameras in PN/PE and integration of NY facilities into NJ Operations Control Center)

- Completed Phase II of Blue Force Tracking (provided 88 law enforcement and emergency response vessels in the harbor with encrypted transponders for secure identification and communication with "friendly" vessels)

- Regional Training - provide a standardized 24

- hour training program to approximately 400 FSOs in the Port, 100 VSO’s and Behavior Pattern Recognition training to approximately 1,000 FSO’s and front line security guards, including personnel from Aviation and PATH

- Re

- wrote Hurricane/Heavy Weather Plan and Emergency Operations Plans based on lessons learned from Superstorm Sandy - Complete CCTV Phase IV at Port Jersey Marine

Terminals

- Develop Breach of Rules Program

- Stage IV design for TWIC readers upon release of USCG regulations $3 M · Enhanced safety and security of port operations.

Security Bollard Installation at Airport

Tenant Terminals · Progress continued on construction for the entire system. As of 12/31/14, construction was ongoing at 9 out of 10 tenant terminals. ·Complete bollards projects at 6 tenant terminals (2 at LGA, 2 at JFK, and 2 at EWR) $17.4 M · Increased facility security at all Port Authority airports.

Motorcoach Security

Initiative · Worked with motor the Coach Carries, TSA, Port Authority Public Safety, Port Authority OEM, NJ Office of Homeland Security and Preparedness to develop and conduct a survey of security best practices for the carriers that use the LT and PABT

- Worked closely with the Transportation Security Administration’s (TSA) Office of Security Policy to incorporate many of the security best pr actices developed by the working group. · Receive roll

- out of TSA industry best security practices report based on TB&T research

· Continue site visits with motorcoach carriers to assess compliance with best practices

- Incorporate use of best security practices into new bus carrier agreements, when possible. $0M*

* requires staff

time to implement · 100% adoption of best security practices as recommended by TSA for motorcoach carriers using

TB&T Terminals.Operational Performance*

PORT

AUTHORITY

FACILITIES PERFORMANCE

MEASURE OPERATING OBJECTIVE 201 3 R ESULTS 201 4 TARGET

Airports Flight Delay Reduction Improvement of year

- to

- year delay statistics for all airports. For the 12 months ending November
2013, 7.7% of operations were delayed, a slight increase over the prior 12 months’ figure of 7.1%. Decrease in flight delays over the same period in the previous year.

Customer Satisfaction Meet or exceed industry benchmark in annual customer

satisfaction surv ey for all terminals at all Port Authority airports. 86 % of arriving passengers and 5 6 % of departing passenge rs were highly satisfied

in 2013 , which exceeds or meets the industry benchmark of 55% , but which represented a slight drop from 2012

results. Increase proportion of highly satisfied customers by 2 percentage points.

FAA Part 139 Compliance Meet Part 139 mandates. All serious findings identified during most recent annual inspections were corrected within 7 days; all other findings corrected by FAA due date

. All reported discrepancies are corrected in a timely manner.

Tunnels, Bridges and

Bus Terminals Incident Response

Time Improve safety and travel time reliability by ensuring incidents are responded to and cleared in a timely and

effective manner. The average incident response time at all

TB&T facilities improved seven seconds

from 13:55 in 2012 to 13:48 in 2013. Decrease in response time over the same time in the previous year.

Scheduled Preventive

Maintenance Hours Completed Minimize the number of failures of equipment and infrastructure by conducting schedule inspections – including general upkeep of the facilities

. 67% of scheduled preventive maintenance were completed in 2013. 80% completion of scheduled preventive

maintena nce.

Reduction in Targeted Crimes at Port Authority Bus

Terminal Minimize number of targeted crimes (robbery, assault, larceny, luggage theft, pickpocket) reported at the Port Authority Bus Terminal A significant increase by 53.5% in targeted crimes at the Port Authority Bus Terminal through December 2013 (221) compared to same period in 2012 (144), which is attributable to the indirect impact of Hurricane Sandy on the PABT. 5% reduction in the number of targeted crimes at the Port Authority Bus Terminal

.

PATH On

- Time Performance Maintain high percentage of PATH trains operating on

- time (within 3 minutes of scheduled departure/arrival time). 97.88% on

- time performance during 24

- hour periods . 98.01% on

- time performance during 24

- hour periods.

97.06% on

- time performance during peak periods . 96.61 % on

- time performance during peak periods.

Service Reliability Maintain high mean distance between failure (number of miles, on average, A PATH car travels before breakdown or failure occurs that results in an annulment or delay) 97,198 miles between failure 12 0,000 miles between failure

Ports Increased Intermodal efficiency Increase pe rcent of cargo moved by rail and reduce truck trips to 20% by 2020 ( ExpressRail actuals + estimated 1.5% of total cargo moved via off

- dock rail ) 14.7% of port cargo moved by rail 16 % of % of port cargo moved by r ail

Clean Air Strategy Reduce amount of air pollution emitted from Port Authority port facilities. Achieved 4% annual reduction in Criteria

Air Pollutants and a 1.75% reduction in GHGs based on most recent survey

results Complete Shore Power Project for Brooklyn Cruise Terminal; 100% compliance with Truck Phase Out Program; Award $1 million in incentives for Clean Ship calls *Note: These selected performance measures reflect the Port Authority’s ongoing efforts to enhance operational performance ac ross all facilities.

# APPENDIX E : GLOSSARY

Allocated Expenses – Expenses allocated to various business programs and facilities of the

Port Authority, using labor as the basis for allocation, for the provision of centralized general

management and administrative services and/or general services applicable to Port District

development activities.

Budget – A formal financial estimate of expected revenues and expenditures setting forth the

Port Authority’s financial operations for a calendar year in a form compatible with th e Port

Authority’s accounting system. The estimate is prepared by all departments and approved by the

Board of Commissioners. It serves as the basis for producing the Financial Plan and becomes a

means of achieving systematic review of program expenditures to ensure that they are made in

accordance with the policies and financial decisions of the Board and the By

- Laws of the Port

Authority.

Capital Expenditures

-- Expenditures for projects that benefit future accounting periods and are

expected to prolong the service lives of assets beyond the originally assigned life or result in a

better or more efficient asset. Capital expenses are broken down into six categories that reflect

the policy goals of the agency:

• Mandatory (MAND)
– Projects required by law , governmental rule or regulation, or by a

rule or policy of the Board of Commissioners.

• Regional Projects (SRP)
– Projects undertaken by the Port Authority which advance the

objectives of the Port Authority but unlike other Port Authority projects

-- whi ch are

typically confined to a specific Port Authority operated facilities – are not operated by the

Port Authority. They are generally initiated at the request of one of the two states.

• Revenue Producing Projects (RPP)
– Projects which provide system enh ancements,

improved customer service levels, and/or regional benefits and which yield a positive

financial return to the Port Authority on its invested capital.

• Security (SEC)
– Projects that are necessary to meet the Agency’s Security Plan. The

Office of Emergency Management has reviewed the scope of the projects for consistency

with Agency security goals.

• State of Good Repair (SGR)
– Projects that are necessary to maintain the continued

functioning of a Port Authority assets consistent with the Agency’s business objectives,

especially those necessary to maintain critical structural integrity and operational

capability of facilities.

### • System Enhancing Projects (SEP)
– Projects that provide system enhancements,

improved customer service levels, and/or regional benefits but do not yield a positive

financial return to the Port Authority.

Capital Plan
– Reflects the current assessment of the potential need for capital expenditures for

the modernization, renovation, rehabilitation, expansion or acquisition of existing and additional

facilities in order to continue to maintain appropriate levels of service.

Commercial Paper (CP)
– Short

- term obligations authorized to be issued to provide interim

financing for the payment of capital expenditures in connection with the facilities of the Port

Authority or to refund prior obligations.

Consolidated Bonds
– A form of long

- term debt issued pursuant to the Consolidated Bond

Res olution of 1952 and subsequent resolutions.

Consolidated Bond Reserve Fund
– A special fund created by Section 7 of the Consolidated

Bond Resolution. The balance remaining of all net revenues of the Port Authority’s existing

facilities after deducting payments for debt service upon all Consolidated Bonds and Notes and

the amount necessary to maintain the General Reserve Fund at its statutorily required amount, is

to be paid into the Consolidated Bond Reserve Fund, which is pledged as additional security fo r

all outstanding Consolidated Bonds and Notes. Consolidated Bonds and Notes have a first lien

upon the net revenues (as defined in the Consolidated Bond Resolution) of all existing facilities of

the Port Authority and any additional facility financed by Consolidated Bonds.

Debt Service
– Represents interest payments, accruals, and mandatory and accelerated

amortization (by sinking fund payments, serial maturities, bank loan payments, etc.), on

outstanding debt charged to the operating and reserve funds.

Deferred and Other Expenses

– refers primarily to expenditures for items such as heavy

vehicles and equipment and computer systems, which are deferred and amortized in future

periods.

Development Expenses – Represents those general expenses of the Port Au t hority for the

development of the Port District. Expenses include certain studies and initiatives

.

Direct Investment in Facilities – Represents application of moneys in the Consolidated Bond

Reserve Fu nd to the Capital Fund, subject to statutory, contractual, and other commitments and

financial policies of the Port Authority in addition to other capital funds carried forward and the

proceeds of Port Authority obligations issued.

### Direct Prorated Expenses – Centralized line department, operations and maintenance services,

and engineering general expenses that are prorated directly to individual operating facilities and

business programs based on their prorated share of direct labor costs.

Facility – A location classification defining a complete and self

- contained unit operated by the

Port Authority.

Fund Balance – Represents the balance of cash and certain specified securities, some of which

are required Port Authority Statutes.

Fund Buy

- Out – Represents the annual implicit interest cost (8.25%) contained in the present

value of amounts due to the States of New York and New Jersey upon the termination, in 1990,

of the Fund for Regional Development.

General Reserve Fund – A special fund established pursuant to Chapter 5 of the Laws of New

Jersey of 1931 and Chapter 48 of the Laws of New York of 1931, as amended and

supplemented. Under the statutes authorizing the pledge of the General Reserve Fund, the Port

Authority may raise monies to finance or refinance any of its present facilities by the issue and

sale of bonds legal for investment. Additional terminal or transportation facilities may also be

financed this way. Surplus revenues from facilities are required to be pooled by the Port Author ity

and applied to the maintenance of a General Reserve Fund in an amount equal to at least 10% of

the par value of all such outstanding bonds legal for investment, as so defined.

Gross Operating Revenues – Revenues from rentals, tolls, fares, aviation fees and other

charges derived in connection with the use of and privileges granted at Port Authority facilities

before the deduction of operating expenses.

Net Operating Revenues – Gross operating revenues less operating expenses and amounts in

connection with operating asset obligations, adjusted by net recoverable/expense amounts

related to the events of September 11, 2001.

Operating Asset Financing - Interest expense associated with the funding of operating assets

such as the Fund Buy

- Out

, where the Port Authority assumed the assets and liabilities of the

former Fund for Regional Development, which had been established to sub

- lease World Trade

Center space previously held by the State of New York; and Equipment Notes

, which are

obligations that are authorized to be issued to facilitate the purchase of operating equipment such

as automotive vehicles, telephones, radios, computer equipment and office furnishings.

### Operating Expenses – Expenses incurred in connection with the operation, maintenance,

secur ity, repair and administration of Port Authority facilities and business programs, including

direct prorated and allocated expenses. Operating expenses are subdivided into six categories:

• Debt Ex pense – Interest costs for special project bonds and operating assets.

• Maintenanc e – Labor and materials to protect the agency’s capital investments and keep

properties, facility structures and equipment operating at a high level of performance,

including complying with applicable codes and regulations, thereby p reventing injury to

life and damage to property.

• Management S ervices – Support operations for all lines of business

-- Aviation, PATH,

Port Commerce, Tunnels, Bridges & Terminals, and World Trade Center.

• Operati ons – Staff and materials required to manage transportation facilities and provide

support services to the traveling public throughout the Port Authority's regional

transportation network, which includes airports, vehicular tunnels, bridges and terminals,

rai l transit system and port shipping facilities.

• Rent – P ayments made periodically to governmental agencies and landlords in return for

the use of land, a building, an office, or other property.

• Securi ty – Providing safe and secure transportation services to the region and nation by

vigilance over potential threats, investment in infrastructure and new technology, and

employment of best practices in security and emergency preparedness operations.

Adapting programs in response to changing conditions and meeting or exceeding

government and industry standards while adding value to the business.

Oper ating Ratio - The resultant of dividing the Port Authority's gross operating revenues by

operating expenses.

Pass enger Facility Charge (PFC)
– Pursuant to the Fe deral Aviation Safety and Capacity

Expansion Act of 1990, the Port Authority has been authorized to impose a PFC on passengers

utilizing its airports. PFC collections are restricted to projects undertaken with the prior approval

of the FAA.

### Port Authority Equipment Notes (PAEN)
– Obligations authorized to be issued for purposes of

payment for capital expenditures in connection with the facilities of the Port Authority or to refund

prior obligations. PAEN carry variable interest rates set by a remarketing agent and are subject to

prepayment at the option of the Port Authority or upon demand of the holders.

Return On Investment (ROI)
– The relationship, generally expressed as a percentage, between

the net income and the investment required to earn the income

.

Special Project Bonds (SPB) - Limited obligations issued for the purpose of providing specific

projects for a lessee or to refund prior obligations. SPBs are secured solely by a pledge of facility

rental derived by the Port Authority under a lease with the lessee. Neither the full faith and credit

of the Port Authority nor any of its revenues, assets or reserve funds are pledged for the payment

of debt service on the bonds.

Sources of Funds - Gross operating revenues generated by Port Authority facili ties as well as

monies generated from the issuance of bonds, notes and other obligations, receipt of grants,

insurance proceeds, earned income on investments and money drawn down from reserve funds,

as well as the collection of Airport Passenger Facility charges. A balanced budget is achieved

when the Sources of Funds is equal to the planned spending or Uses of Funds for the fiscal year.

Times Debt Service Earned
– The relationship of net revenues available for debt service and

reserves to the total obligatory bonded debt service. In this context, “total obligatory bonded debt

service” excludes Fund for Regional Development buyout principal and interest expense, debt

service on Special Project Bonds, operating equipment lease financing obligations and any PFC

backed debt associated with investment in use.

Uses of Funds - The cost of operating expenses, capital expenditures, debt service on

outstanding bonds, notes and others obligations, and other expenditures that are deferred and

amortized in future periods. When the Uses of Funds is equal to revenues generated by the

Sources of Funds, the budget is balanced.

Variable Rate Master Notes (VRMN)
– Obligations authorized to be issued for purposes of

payment for capital expenditures in connection with the facilities of the Port Authority or to refund

prior obligations. VRMN carry variable interest rates in accordance with specified indices and are

subject to prepayment at the option of the Port Authority or upon demand of the holders.

Versatile Structu re Obligations (VSO)
– Obligations authorized to be issued for purposes of

payment for capital expenditures in connection with the facilities of the Port Authority or to refund

prior obligations. VSO carry variable interest rates set by a remarketing agent and are subject to

prepayment at the option of the Port Authority or upon demand of the holders.225 PARK AVENUE SOUTH

NEW YORK, NY 10003

www.panynj.gov February 19, 2014 

### THE PORT AUTHORITY OF NY & NJ