Transcript Slide 1

FY 11 Airport Budget
Recommendations
1
Aviation Department Mission
Statement
To provide a safe and secure air transportation
system that is economically and
environmentally sustainable while supporting
regional growth
2
Aviation Passenger Traffic
Enplaned passengers
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.
Change Forecast
Change Budget
FORECAST FY10 vs. Actual BUDGET
FY11 vs.
FY 2010
FY09
FY 2011 Forecast FY10
In Thousands
ACTUAL
FY 2009
BUDGET
FY 2010
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%
80.7%
79.4%
80.3%
(0.4%) pts
81.2%
0.9% pts
Load Factor
3
Domestic and International Enplaned
Passengers FY 2001 – FY 2011
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2001
2002
2003
Domestic Passengers
2004
2005
2006
International Passengers
2007
2008
2009
2010
2011
Forecast Budget
Total Enplaned Passengers
4
Domestic and International Passengers
Distribution - FY 2010 versus FY 2001
2001
Domestic
2010
International
9%
Domestic
International
15%
91%
85%
5
Commercial and General Aviation
Operations 2001 - 2011
250,000
200,000
150,000
100,000
50,000
2001
2002
2003
Air Carrier
2004
2005
2006
Air Taxi & Commuter
2007
2008
2009
2010
2011
Forecast Forecast
General Aviation
Based on TAF data by calendar year
6
Commercial and General Aviation
Operations - 2010 versus 2001
2010
2001
Air Carrier
Air Taxi & Commuter
General Aviation
Air Carrier
Air Taxi & Commuter
General Aviation
15%
28%
16%
53%
19%
69%
7
Key Comparative Performance
Data FY 2009
Fort
Lauderdale /
Hollywood
Miami
Number of Enplaned Passengers (in thousands)
10,468
16,884
3,040
2,782
Number of Operations
249,986
348,487
142,358
Landed Weight (million lbs)
13,112
30,172
Cost per Enplaned Passenger (CPE)
$5.44
Landing Fees per 1,000 lbs
Tampa
Fort Myers
16,799
8,561
3,737
95,927
284,998
204,284
84,526
3,646
4,484
20,853
10,467
n/a
$16.48
$6.93
$5.48
$5.51
$4.93
$7.19
$1.05
$1.18
$1.20
$1.14 **
$1.43
$1.08
$2.57
$47.13
$65.14
$59.39
$23.60 **
$102.01
n/a
n/a
$175,267
$521,600
$63,301
Concession Revenue per Enplaned Passenger
$4.40
$6.13
$5.32
$4.80 **
$9.46
n/a
$5.82
Nonoperating Revenues (in thousands)
$57,184
$81,900
$17,855
$18,691 **
$76,168
$38,678
$16,185
$119,089
$386,940
$45,602
$40,878 ** $196,975
$91,254
$62,218
1.59
1.45
1.65
1.83
1.33
1.48
n/a
A1
A2
A2
A2
Aa3
Aa3
A2
Average Terminal Rent per SqFt
Operating Revenues (in thousands)
Operating Expenses* (in thousands)
Debt Service Coverage
Revenue Bonds - Moody's Rating
Palm Beach Jacksonville Orlando
$59,346 ** $341,999 $165,718
$83,628
* Before depreciation
** 2008 Data
n/a = Data not available
8
Airline Market Share FY 2009
2.0%
3.5%
6.3%
Spirit
19.0%
Southwest Airlines Co.
4.6%
jetBlue
5.9%
Delta Airlines, Inc.
US Airways/America West
7.6%
16.7%
Continental Airlines
Air Tran Airways
American Airlines
8.8%
Northwest Airlines
11.5%
14.2%
Air Canada
Non-signatory
9
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
10
Statement of Revenues, Expenses, &
Changes in Net Assets
$ Thousands
Actual
FY 2009
Forecast
FY 2010
Budget
FY 2010
Budget
FY 2011
Operating Revenues
$ 175,267
$ 171,939
$ 178,370
$ 180,180
119,089
125,339
128,604
123,485
(5,119)
-4.0%
Operating Income before Depreciation
Depreciation
56,177
35,343
46,600
35,500
49,766
35,500
56,695
35,500
6,929
-
13.9%
0.0%
Operating Income
Nonoperating Revenues
20,834
57,184
11,100
54,590
14,266
51,610
21,195
54,462
6,929
2,853
48.6%
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%
$ 53,305
$ 38,973
$ 39,458
$ 97,241
57,783
146.4%
Operating Expenses
Increase in Net Assets
Variance - Budget
FY11 vs. FY10
$ 1,810
1.0%
11
Revenue, Expense and Net Income Five year Comparison
$200,000
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$Actual
FY 2007
Actual
FY 2008
Actual
FY 2009
Forecast
FY 2010
Operating Revenue
Operating Expense
Operating Income before depreciation
Net Income
Budget
FY 2011
12
Operating Revenue Comparison
$ Thousands
Airlines
Actual
FY 2009
$
56,907
Forecast
FY 2010
$
57,139
Budget
FY 2010
$
59,290
Budget
FY 2011
$
Variance - Budget
FY11 vs. FY10
58,086
$ (1,204)
-2.0%
Concession Revenues:
Rental Cars
Food & Beverage
News & Gifts
All Others
Sub-total
26,224
7,862
7,126
4,833
46,045
24,906
8,695
4,864
4,809
43,273
25,413
7,800
7,095
5,481
45,789
26,920
8,844
6,854
5,225
47,843
1,507
1,044
(241)
(256)
2,054
5.9%
13.4%
-3.4%
-4.7%
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%
$ 175,267
$ 171,939
$178,370
$180,180
Total Operating Revenues
$ 1,810
1.0%
13
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:
Concessions
Rental Cars
Food & Beverage
Customer Facility Charges
Airline Revenue (Consolidation)
$1.5M
$1.0M
$0.6M
($1.2M)
14
Operating Revenue Distribution –
Budget 2011
Customer
Facility Charges
13%
Building &
Ground Rent
5%
Other
Operating
Revenues
1%
Airlines
32%
Parking
22%
Concession
Revenues
27%
15
Parking Transactions and Average
Revenue per Transaction
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
Average Revenue per Transaction
Average Number of Transactions
per Enplaned Passenger
$20
0.25
$18
$16
0.20
$14
$12
0.15
$10
$8
0.10
$6
$4
0.05
$2
$-
12 mths
ended March
2008
12 mths
ended March
2009
12 mths
ended March
2010
12 mths
ended March
2008
12 mths
ended March
2009
12 mths
ended March
2010
16
Parking Revenue Distribution - 2010
versus 2008
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
Twelve Months ended Mar-08
Twelve Months ended Mar-10
Hourly
9%
Hourly
9%
Park & Save
6%
Valet
16%
Park & Save
9%
Daily
69%
Valet
13%
Daily
69%
17
Concession Revenue Mix –
Budget FY 2011 versus Actual FY 2009
All
Others
11%
Actual 2009
News &
Gifts
15%
All Others
11%
News &
Gifts
14%
Rental Cars
57%
Food &
Beverage
17%
Budget 2011
Rental
Cars
56%
Food &
Beverage
19%
18
Airline Rates and Charges
Five year Comparison
Airline Terminal Rates and Landing Fees are
budgeted to stay at current rates:
Industry
Average
FY 2007 ^
Actual
FY 2009
Budget
FY 2010
Terminal Rate
47.13
47.13
47.13
47.13
Landing Fees
1.05
1.05
1.05
1.05
$5.44
$5.75
$5.31
$5.25
CPE
$7.16
Forecast Budget
FY 2010 FY 2011
^ Latest available data based on large hub airports
19
Airline versus non-Airline Revenue
FY 2009
100%
90%
80%
70%
60%
53.3%
54.2%
63.7%
67.5%
67.5%
55.5%
56.2%
44.5%
43.8%
Fort Myers
Industry
Average
(2007)
69.5%
50%
40%
30%
20%
10%
46.7%
45.8%
36.3%
32.5%
32.5%
30.5%
0%
Fort
Lauderdale/
Hollywood
Miami
Palm Beach Jacksonville
Airline Revenue
Orlando
Tampa
Non-airline revenue
20
Operating Expenses Comparison
$ Thousands
Contract Services
Actual
FY 2009
$
34,072
Forecast
FY 2010
$
37,296
Budget
FY 2010
$
38,588
Budget
FY 2011
$
39,183
Variance - Budget
FY11 vs. FY10
$
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
$119,089
$ 125,339
$ 128,604
$ 123,485
Total Operating Expenses
(5,119)
3.8%
-4.0%
21
FY 2011 Preliminary Operating Expense
Highlights (versus FY 2010 Budget)

Operating Expenses have been reduced
by 4% primarily due to reductions in:
Aircraft Rescue and Firefighting (ARFF)
Property Insurance
Broward Sheriff Office – LEO
($3.3M)
($1.9M)
(0.8M)
22
Operating Expense Distribution –
Budget 2011
BSO - ARFF
5%
Cost
Allocation
2%
Insurance
7%
Utilities
10%
BSO - LEO's
13%
Equipment Other
Maintenance 5%
1%
Contract Services
32%
Personnel
25%
23
FY 2011 Projected Revenues and
Proposed Appropriations
In millions
Operating
Capital
$28
48
180
26
9
$46
Total
Projected Revenues
Fund Balance
Debt Service Fund Balance
Operating Revenues
Passenger Facility Charges
Interest Income
Bond Proceeds
State and Federal Grants
Future Financing / Passenger Facility Charge collections
Total
2
$293
18
1
15
390
370
$75
48
180
44
9
15
392
370
$840
$1,133
Proposed Appropriations
Operating Budget
Capital Budget
Debt Service Budget
Debt Service Requirement
Total
156
840
89
49
$293
$840
156
840
89
49
$1,133
24
Aviation Capital Projects FY2011 – FY2015
In thousands
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
Airfield
Permanent VOR
FLL Rehabilitation of Runway 9L-27R
Virtual Ramp Control/Aircraft Gate and Runway Monitoring
Replace Old Airfield Signage
Runway 9R-27L Expansion
Land Acquisition for RW 9R-27L Expansion
Taxiway C East
7,000
500
150
714,431
40,000
15,000
-
-
2,250
-
27,750
-
777,081
-
-
2,250
27,750
300
500
1,800
3,200
30,000
260
500
33,301
8,491
25,000
-
250
500
40,050
37,981
50,000
-
2,563
500
17,664
184,937
25,000
-
500
5,785
18,966
-
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
770
298
-
-
822,809
74,482
150,752
271,240
62,264
17,593
17,760
17,929
18,099
18,271
840,402
92,242
168,681
289,339
80,535
Sub-Total
Terminal
In-Roadway Crosswalk Warning Lights
Int Chilled Water Piping Ext between Terminals 1, 2, 3 & 4
Matrix Security System Upgrade
Tenant Relocations
Terminal Modernization
Terminal 4 Gate Replacement (Western Expansion)
Terminal 4 Gate Replacement (Eastern Expansion)
InLine EDS Baggage Systems (Constr)
Next Bus Signage and Automatic Vehicle Locator (AVL) System Upgrades
Sub-Total
North Perry Projects
Total Capital Projects
Reserves
Total Appropriations
-
25
FY 2011 Capital Improvement Budget
with Funding Sources
In thousands
Fort Lauderdale Hollywood /International
FUNDING SOURCES
TOTAL
BCAD CASH
FAA
FDOT
PFC's
BONDS
Airfield:
Replace Old Airfield Signage
Permanent VOR
Land Acquisition for RW 9R-27L Expansion
Runway 9R-27L Expansion
Taxiway C East
Virtual Ramp Control/Aircraft Gate and Runway Monitoring
150
7,000
40,000
714,431
15,000
500
500
300,000
11,250
-
79,000
-
150
7,000
3,750
-
40,000 *
335,431 *
-
777,081
500
311,250
79,000
10,900
375,431
1,800
30,000
3,200
500
300
260
1,800
Terminal:
Tenant Relocations
Terminal 4 Gate Replacement (Design only)
Terminals 1 - 3 Modernization
Matrix Security System Upgrade
In-Roadway Crosswalk Warning Lights
Next Bus Signage and Automatic Vehicle Locator (AVL) System Upgrades
3,200
260
-
-
19,000
500
300
-
11,000
-
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
-
-
-
-
822,809
15,308
79,000
30,820
TOTAL CAPITAL PROJECTS
311,250
386,431
* PFC Backed Bonds
26