Okaloosa County BOCC — August 1, 2016 — Airports Presentation

AIRPORTS DEPARTMENT FISCAL YEAR 2017 BUDGET SUMMARY AIRPORTS DEPARTMENT STAFF FY2016 MAJOR ACCOMPLISHMENTS  Increased financial controls with full implementation of automated financial system (Prop Works), establishment of compliance system for leases and contracts, and new staff with a focus on internal controls  Established an audit program for Airport concessions to ensure compliance with General Accepted Accounting Practices and accurate reporting of revenue  Dev and Imp Hangar Inspection program established to monitor lease compliance and ensure FAA grant assurances are met  Developed and currently negotiating proposal to the EUL that includes an extended 50 year lease, new lease fee payment, modification to the Joint Use Agreement terms and permission to construct a gas station  Negotiated and awarded Airline and Rental Car agreements that will cover five (5) years with five (5) extensions  Maintained an upgraded bond rating from Standard & Poor’s of BBB+ with stable outlook for 6th straight year  Bob Sikes and Destin Executive Airports were inspected by the FDOT Aviation Division and both received excellent ratings and were lauded by Inspector as “a very well managed and well-run system of airports”  Completed FAA Part 139 Inspection with zero discrepancies. Training program was developed to provide initial and reoccurring training for staff  New Air Service provided by two (2) new carriers to nine (9) new non-stop routes HISTORICAL STAFFING Category FY14 FY15 FY16 FY17 Full-time Administrative & Support 26 26 28 29 Full-time Management & Professional 6 6 7 7 Full-time Operations & Trades 10 10 8 8 Relief 10 10 10 10 Total 52 52 53 54 OPERATING EXPENSES BY AIRPORT Airport FY2016 FY2017 % (+/-) Destin-Fort Walton Beach Airport $7,823,175 $7,882,564 0.76% Destin Executive Airport $248,409 $276,625 11.4% Bob Sikes Airport $258,633 $245,586 -5.04% Total $8,330,217 $8,404,775 0.90%  OPERATING REVENUE BY AIRPORT Airport FY2016 FY2017 % (+/-) Destin-Fort Walton Beach Airport $7,915,469 $8,438,994 6.61% Destin Executive Airport $525,050 $749,472 42.7% Bob Sikes Airport $367,952 $508,240 38.1% Total Operating Revenue $8,808,471 $9,696,706 10.1% Restricted Revenue Accounts FY2016 FY2017 % (+/-) Passenger Facility Charges $1,442,000 $1,650,000 14.4% Customer Facility Charges $1,500,000 $1,700,000 13.3% Interest Revenue $115,000 $180,000 56.5% Total Restricted Revenue $3,057,000 $3,530,000 15.5% AIRPORTS OPERATING POSITION Destin-Fort Walton Destin Executive Bob Sikes Airport Beach Airport Airport FY2017 Operating Revenue $8,438,994 $749,472 $508,240 FY2017 Operating Expense $7,882,564 $276,625 $245,586 Operating Earnings $556,430 $472,847 $262,654 Capital Outlay ($169,726) ($8,000) ($48,000) Net Operating Earnings $386,704 $464,847 $214,654 Total Net Operating Earnings $1,066,205 Other Revenue (Restricted) $3,530,000 Net Revenue $4,596,205 Debt Service ($1,543,107) Increase to Reserves $3,053,098 BAGGAGE HANDLING SYSTEM PROJECT TSA OTA $4,318,169 AIRPORT RESCUE FIRE FIGHTING FACILITY Federal Fun