Post on 24-Feb-2016
description
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FY 11 Airport Budget Recommendations
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Aviation Department Mission Statement
To provide a safe and secure air transportation system that is economically and environmentally sustainable while supporting regional growth
Aviation Passenger Traffic Enplaned passengers
In ThousandsACTUALFY 2009
BUDGETFY 2010
FORECASTFY 2010
Change Forecast FY10
vs. Actual FY09
BUDGETFY 2011
Change Budget FY11
vs. Forecast FY10
Passengers 10,468 10,318 10,758 290 2.8% 11,054 296 2.8%
Seats 12,979 13,000 13,400 421 3.2% 13,611 211 1.5%
Load Factor 80.7% 79.4% 80.3%
(0.4%) pts 81.2% 0.9% pts
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Enplaned passengers are expected to increase 2.8% in FY 2010 compared to FY 2009 and an additional 2.8% in FY 2011 over FY 2010.
Domestic and International Enplaned Passengers FY 2001 – FY 2011
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0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Forecast
2011 Budget
Domestic Passengers International Passengers Total Enplaned Passengers
Domestic and International Passengers Distribution - FY 2010 versus FY 2001
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91%
9%
2001Domestic International
85%
15%
2010Domestic International
Commercial and General Aviation Operations 2001 - 2011
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Based on TAF data by calendar year
-
50,000
100,000
150,000
200,000
250,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Forecast
2011 Forecast
Air Carrier Air Taxi & Commuter General Aviation
Commercial and General Aviation Operations - 2010 versus 2001
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69%
16%
15%
2010Air Carrier Air Taxi & Commuter General Aviation
53%
19%
28%
2001Air Carrier Air Taxi & Commuter General Aviation
Key Comparative Performance Data FY 2009
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Fort Lauderdale /Hollywood
Miami Palm Beach Jacksonville Orlando Tampa Fort Myers
Number of Enplaned Passengers (in thousands) 10,468 16,884 3,040 2,782 16,799 8,561 3,737Number of Operations 249,986 348,487 142,358 95,927 284,998 204,284 84,526Landed Weight (million lbs) 13,112 30,172 3,646 4,484 20,853 10,467 n/aCost per Enplaned Passenger (CPE) $5.44 $16.48 $6.93 $5.48 $5.51 $4.93 $7.19Landing Fees per 1,000 lbs $1.05 $1.18 $1.20 $1.14 ** $1.43 $1.08 $2.57Average Terminal Rent per SqFt $47.13 $65.14 $59.39 $23.60 ** $102.01 n/a n/aOperating Revenues (in thousands) $175,267 $521,600 $63,301 $59,346 ** $341,999 $165,718 $83,628Concession Revenue per Enplaned Passenger $4.40 $6.13 $5.32 $4.80 ** $9.46 n/a $5.82Nonoperating Revenues (in thousands) $57,184 $81,900 $17,855 $18,691 ** $76,168 $38,678 $16,185Operating Expenses* (in thousands) $119,089 $386,940 $45,602 $40,878 ** $196,975 $91,254 $62,218Debt Service Coverage 1.59 1.45 1.65 1.83 1.33 1.48 n/aRevenue Bonds - Moody's Rating A1 A2 A2 A2 Aa3 Aa3 A2
* Before depreciation** 2008 Datan/a = Data not available
Airline Market Share FY 2009
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19.0%
16.7%
14.2%11.5%
8.8%
7.6%
5.9%
4.6%
3.5%2.0% 6.3%
Spirit
Southwest Airlines Co.
jetBlue
Delta Airlines, Inc.
US Airways/America West
Continental Airlines
Air Tran Airways
American Airlines
Northwest Airlines
Air Canada
Non-signatory
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FY 2011 Key Budget Highlights Compared to FY 2010 Budget
Budgeted non-airline operating revenue is projected to increase by $3 million (2.5%) over FY 2010 Budget as a result of concession revenue responding to the higher passenger levels
Operating expenses are expected to decrease by 4% compared with FY 2010 Budget mainly due to a decrease in the ARFF expense and Property Insurance
Statement of Revenues, Expenses, & Changes in Net Assets
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$ Thousands Actual Forecast Budget BudgetFY 2009 FY 2010 FY 2010 FY 2011
Operating Revenues 175,267$ 171,939$ 178,370$ 180,180$ 1,810$ 1.0%
Operating Expenses 119,089 125,339 128,604 123,485 (5,119) -4.0%
Operating Income before Depreciation 56,177 46,600 49,766 56,695 6,929 13.9%Depreciation 35,343 35,500 35,500 35,500 - 0.0%
Operating Income 20,834 11,100 14,266 21,195 6,929 48.6%Nonoperating Revenues 57,184 54,590 51,610 54,462 2,853 5.5%
Nonoperating Expenses 39,016 39,217 39,417 41,716 2,298 5.8%
Income before Capital Contributions 39,002 26,473 26,458 33,941 7,483 28.3%
Capital Contributions 14,303 12,500 13,000 63,300 50,300 386.9%
Increase in Net Assets 53,305$ 38,973$ 39,458$ 97,241$ 57,783 146.4%
Variance - BudgetFY11 vs. FY10
Revenue, Expense and Net Income - Five year Comparison
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$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
ActualFY 2007
ActualFY 2008
ActualFY 2009
ForecastFY 2010
BudgetFY 2011
Operating Revenue Operating Expense
Operating Income before depreciation Net Income
Operating Revenue Comparison
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$ Thousands Actual Forecast Budget BudgetFY 2009 FY 2010 FY 2010 FY 2011
Airlines 56,907$ 57,139$ 59,290$ 58,086$ (1,204)$ -2.0%
Concession Revenues: Rental Cars 26,224 24,906 25,413 26,920 1,507 5.9% Food & Beverage 7,862 8,695 7,800 8,844 1,044 13.4% News & Gifts 7,126 4,864 7,095 6,854 (241) -3.4% All Others 4,833 4,809 5,481 5,225 (256) -4.7% Sub-total 46,045 43,273 45,789 47,843 2,054 4.5%
Parking 38,906 37,061 38,889 38,751 (138) -0.4%
Customer Facility Charges 21,794 22,510 22,565 23,191 626 2.8%
Building & Ground Rent 8,917 9,489 9,785 9,683 (102) -1.0%
Other Operating Revenues 1,690 1,456 1,028 1,616 588 57.2%
North Perry Airport 1,008 1,011 1,024 1,010 (14) -1.4%
Total Operating Revenues 175,267$ 171,939$ 178,370$ 180,180$ 1,810$ 1.0%
Variance - BudgetFY11 vs. FY10
FY2011 Projected Preliminary Operating Revenue Highlights (versus FY2010 Budget)
Overall Operating Revenues for FY2011 will increase 1% compared to FY2010 budgeted levels. Major variances relate to:
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Concessions Rental Cars $1.5M Food & Beverage $1.0MCustomer Facility Charges $0.6MAirline Revenue (Consolidation) ($1.2M
)
Operating Revenue Distribution – Budget 2011
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Airlines32%
Concession Revenues
27%
Parking22%
Customer Facility Charges
13%
Building & Ground Rent
5%
Other Operating Revenues
1%
Parking Transactions and Average Revenue per Transaction
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Parking revenue is decreasing as a result of both a drop in the average number of transactions per enplaned passenger as well as a decrease in the average revenue per transaction
-
0.05
0.10
0.15
0.20
0.25
12 mths ended March
2008
12 mths ended March
2009
12 mths ended March
2010
Average Number of Transactions per Enplaned Passenger
$-$2 $4 $6 $8
$10 $12 $14 $16 $18 $20
12 mths ended March
2008
12 mths ended March
2009
12 mths ended March
2010
Average Revenue per Transaction
Parking Revenue Distribution - 2010 versus 2008
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The percentage of daily and hourly parking of total revenue has not changed during the last two years. However, there has been a shift from valet to economy parking
Hourly9%
Daily69%
Park & Save6%
Valet16%
Twelve Months ended Mar-08Hourly
9%
Daily69%
Park & Save9%
Valet13%
Twelve Months ended Mar-10
Concession Revenue Mix – Budget FY 2011 versus Actual FY 2009
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Rental Cars57%
Food & Beverage
17%
News & Gifts15%
All Others11%
Actual 2009
Rental Cars56%
Food & Beverage
19%
News & Gifts14%
All Others11%
Budget 2011
Airline Rates and ChargesFive year Comparison
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Airline Terminal Rates and Landing Fees are budgeted to stay at current rates:
Industry Average Actual Budget Forecast Budget
FY 2007 ^ FY 2009 FY 2010 FY 2010 FY 2011
Terminal Rate 47.13 47.13 47.13 47.13
Landing Fees 1.05 1.05 1.05 1.05
CPE $7.16 $5.44 $5.75 $5.31 $5.25
^ Latest available data based on large hub airports
Airline versus non-Airline Revenue FY 2009
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32.5%45.8%
32.5%46.7%
36.3% 30.5%44.5% 43.8%
67.5%54.2%
67.5%53.3%
63.7% 69.5%55.5% 56.2%
0%10%20%30%40%50%60%70%80%90%
100%
Fort Lauderdale/Hollywood
Miami Palm Beach Jacksonville Orlando Tampa Fort Myers Industry Average (2007)
Airline Revenue Non-airline revenue
Operating Expenses Comparison
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$ Thousands Actual Forecast Budget BudgetFY 2009 FY 2010 FY 2010 FY 2011
Contract Services 34,072$ 37,296$ 38,588$ 39,183$ 595$ 1.5%
Personnel 30,931 31,421 30,771 31,496 725 2.4%
BSO - LEO's 17,100 16,604 17,000 16,209 (792) -4.7%
Utilities 10,838 11,942 12,293 11,922 (371) -3.0%
Insurance 8,661 8,726 10,085 8,226 (1,859) -18.4%
BSO - ARFF 9,231 9,896 9,342 6,000 (3,342) -35.8%
Cost Allocation 2,404 2,953 2,953 2,866 (87) -2.9%
Equipment Maintenance 1,672 1,590 1,879 1,675 (204) -10.9%
Other 4,180 4,910 5,693 5,908 215 3.8%
Total Operating Expenses 119,089$ 125,339$ 128,604$ 123,485$ (5,119) -4.0%
Variance - BudgetFY11 vs. FY10
FY 2011 Preliminary Operating Expense Highlights (versus FY 2010 Budget)
Operating Expenses have been reduced by 4% primarily due to reductions in:
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Aircraft Rescue and Firefighting (ARFF)
($3.3M)
Property Insurance ($1.9M)
Broward Sheriff Office – LEO (0.8M)
Operating Expense Distribution – Budget 2011
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Contract Services32%
Personnel 25%
BSO - LEO's13%
Utilities10%
Insurance 7%
BSO - ARFF5%
Cost Allocation
2%
Equipment Maintenance
1%
Other5%
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FY 2011 Projected Revenues and Proposed Appropriations
In millionsOperating Capital Total
Projected Revenues
Fund Balance $28 $46 $75Debt Service Fund Balance 48 48 Operating Revenues 180 180 Passenger Facility Charges 26 18 44 Interest Income 9 1 9 Bond Proceeds 15 15 State and Federal Grants 2 390 392 Future Financing / Passenger Facility Charge collections 370 370 Total $293 $840 $1,133
Proposed Appropriations
Operating Budget 156 156 Capital Budget 840 840 Debt Service Budget 89 89 Debt Service Requirement 49 49 Total $293 $840 $1,133
Aviation Capital Projects FY2011 – FY2015
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In thousands FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Airfield
Permanent VOR 7,000 - - - - FLL Rehabilitation of Runway 9L-27R - - - 2,250 27,750 Virtual Ramp Control/Aircraft Gate and Runway Monitoring 500 - - - - Replace Old Airfield Signage 150 - - - - Runway 9R-27L Expansion 714,431 - - - - Land Acquisition for RW 9R-27L Expansion 40,000 - - - - Taxiway C East 15,000 - - - - Sub-Total 777,081 - - 2,250 27,750
TerminalIn-Roadway Crosswalk Warning Lights 300 - - - - Int Chilled Water Piping Ext between Terminals 1, 2, 3 & 4 - - 250 2,563 - Matrix Security System Upgrade 500 - - - - Tenant Relocations 1,800 500 500 500 500 Terminal Modernization 3,200 33,301 40,050 17,664 5,785 Terminal 4 Gate Replacement (Western Expansion) 30,000 - - - - Terminal 4 Gate Replacement (Eastern Expansion) - 8,491 37,981 184,937 18,966 InLine EDS Baggage Systems (Constr) - 25,000 50,000 25,000 - Next Bus Signage and Automatic Vehicle Locator (AVL) System Upgrades 260 - - - - Sub-Total 36,060 67,292 128,781 230,664 25,251
Machinery, Equipment & Other 1,782 897 16,714 1,062 750
General & Administrative 6,756 3,735 3,422 2,314 3,463
Parking 1,130 1,788 1,537 34,950 5,050
North Perry Projects - 770 298 - -
Total Capital Projects 822,809 74,482 150,752 271,240 62,264
Reserves 17,593 17,760 17,929 18,099 18,271
Total Appropriations 840,402 92,242 168,681 289,339 80,535
FY 2011 Capital Improvement Budget with Funding Sources
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In thousands
Fort Lauderdale Hollywood / International TOTAL BCAD CASH FAA FDOT PFC's BONDSAirfield:
Replace Old Airfield Signage 150 - - - 150 - Permanent VOR 7,000 - - - 7,000 - Land Acquisition for RW 9R-27L Expansion 40,000 - - - - 40,000 *Runway 9R-27L Expansion 714,431 - 300,000 79,000 - 335,431 *Taxiway C East 15,000 - 11,250 - 3,750 - Virtual Ramp Control/Aircraft Gate and Runway Monitoring 500 500 - - - -
777,081 500 311,250 79,000 10,900 375,431 Terminal:
Tenant Relocations 1,800 1,800 - - - - Terminal 4 Gate Replacement (Design only) 30,000 - - 19,000 11,000 Terminals 1 - 3 Modernization 3,200 3,200 - - - - Matrix Security System Upgrade 500 - - - 500 - In-Roadway Crosswalk Warning Lights 300 - - - 300 - Next Bus Signage and Automatic Vehicle Locator (AVL) System Upgrades 260 260 - - - -
36,060 5,260 - - 19,800 11,000
Machinery, Equipment & Other: 1,782 1,782 - - - -
General & Administrative 6,756 6,636 - - 120 -
Parking 1,130 1,130 - - - -
TOTAL CAPITAL PROJECTS 822,809 15,308 311,250 79,000 30,820 386,431
* PFC Backed Bonds
FUNDING SOURCES