Seattle: Finance#

Audited financials, bond documents, lodging tax, and reserve status for the WSCC Public Facilities District.

Primary sources: Moss Adams LLP audited financial statements (seattlecc.com/governance/financial-reports/), bond official statements from EMMA, PFD board meeting minutes (2018–2025).

Operating Performance#

FY2024 audited (Moss Adams, May 16, 2025). FY2025 unaudited (PSBJ report, March 26, 2026).

The $70.8M gap between FY2024’s -$69.4M GAAP loss and FY2025’s claimed +$1.4M income warrants examination when the FY2025 audit is released (expected October 2026).

Revenue Breakdown (FY2024 Audited)#

Debt#

Outstanding Bonds (FY2024)#

Underwriters (2018 issuance): Citigroup, Goldman Sachs, RBC, BofA Merrill Lynch, J.P. Morgan.

Ratings history:

• 2018 (issuance): Moody’s Aa3/A1, S&P A+/A
• 2021 (refunding): Downgraded to Moody’s Baa1/Baa3, S&P BBB-/BB+

Debt Service Schedule (Year by Year)#

Source: WSCC PFD 2024 Audit, Note 6, p.29. Combined principal + interest across all bond series.

The Balloon Window (2030–2034)#

In bond finance, a “balloon payment” is a large lump-sum principal payment that comes due after a period of smaller regular payments. The bonds were structured to keep payments low in the early years and concentrate principal repayment into 2030–2034.

At FY2024 lodging tax levels ($99.9M Seattle + $6.4M King County = $106.3M combined), the 2030–2034 window produces a $50M annual shortfall in debt service coverage alone — before accounting for the $16.4M annual operating cash burn.

The state backstop — Washington’s guarantee covering any debt service shortfall — expires in 2029. One year before the balloon arrives.

2018 Bond Issuance Detail#

Issued August 9, 2018. Authorized by Resolution No. 2018-06 (adopted June 26, 2018).

First Priority Bonds ($598,790,000):

• Serial bonds (2020–2038): $305K–$1.205M per year at 5.00%
• Term bonds due 2043: $68.87M at 5.00% (yield 3.44%)
• Term bonds due 2048: $134.325M at 5.00% (yield 3.49%)
• Term bonds due 2058: $206.96M at 5.00% (yield 3.64%)
• Term bonds due 2058: $175.9M at 4.00% (yield 3.99%)

Subordinate Priority Bonds ($404,805,000):

• Subordinate lien on lodging tax revenues
• Issued at 4.00–5.00%

King County CPS Note ($141,010,940):

• Seller financing for Convention Place station land purchase
• Further subordinated to both bond series
• Issued July 25, 2018

Bond Counsel: Pacifica Law Group LLP, Seattle Underwriters’ Counsel: Orrick, Herrington & Sutcliffe LLP, Seattle Trustee: U.S. Bank National Association, Seattle

2021 Refunding#

Issued August 10, 2021. Refinanced a portion of the 2018 bonds at lower rates during the pandemic.

• First Priority: $12.5M + $243.8M = $256.3M
• Subordinate Priority: $9.8M + $277.8M = $287.6M
• Total: $543.9M

Ratings at refunding: Moody’s Baa1/Baa3, S&P BBB-/BB+ (downgraded from Aa3/A1 and A+/A at original issuance).

The downgrade from investment-grade Aa3 to Baa1 (Moody’s first priority) reflects the pandemic impact on lodging tax revenues and the increased risk profile of the debt. The 2021 official statement noted the District “has not contracted for updated lodging tax forecast.”

Lodging Tax#

Seattle’s 7% hotel tax is the primary revenue source for PFD bond debt service.

CBRE Hotels Advisory produced the 30-year forecast (Table I-1, p.141 of the 2018 Official Statement) as the basis on which investors bought over $1 billion in bonds. Assumptions: 3% average ADR growth, 80% occupancy, 2% supply growth, Summit opening mid-2021.

King County extended rate (2.8%): $6.4M (FY2024). Combined lodging tax: ~$106M.

Reserves#

Net position has declined ~$35–38M per year since 2022.

Key Dates#

Sources#

• WSCC PFD 2024 Audited Financial Statements (Moss Adams LLP)
• 2018 Bond Official Statement — First Priority Revenue Bonds
• 2021 Refunding Bond Official Statement
• PFD Board Meeting Minutes, 2018–2025