Okaloosa County BOCC — August 12, 2014 — reading text

Development Council and other agencies to fast track development initiatives. 6. Operate facility with efficiency and lowest possible O&M expense. PERFORMANCE MEASURES: Actual Estimated Adopted Performance Measures FY12/13 FY13/14 FY14/15 Compare aircraft operations to employees (ratio) 23,000:1 15,000:1 13,400:1 Divide O&M expense by annual activity levels (ratio) $7.25:1 $5.66:1 $4.19:1 Determine cost per acre by dividing annual O&M expense $271.93 $212.04 $259.96 by facility size. Packet Pg. 44  Department of Airports Fiscal Year 2015 Budget Presentation Board of County Commissioners August 12, 2015 Packet Pg. 45  Historic & Est. Enplanement Activity 500.0 448.9 399.7 386.3 385.4 400.0 369.2 374.4 377.8 (in thousands) Enplanements 300.0 200.0 100.0 0.0 2008 2009 2010 2011 2012 2013 2014 Fiscal Year Ended September 30th AAGR: -3.4% -4.4% 21.6% -14.1% -2.9% 0.09% Ø Through July, FY 2014 enplanements are at the same level as FY 2013 Ø Through September, FY2014 enplanements are expected to exceed FY 2013 2 Packet Pg. 46  Operating Revenues and Expenses (in millions) $10.0 $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 2008 2009 2010 2011 2012 2013 2014 Estimate Operating Revenues Operating Expenses (before depreciation and amortization) * 2014 2008 2009 2010 2011 2012 2013 Estimate Operating Revenues $7.6 $8.2 $8.8 $9.5 $9.2 $9.4 $8.5 Operating Expenses 6.2 6.7 7.2 8.9 8.4 $7.1 $7.5 Net Operating Revenues Before $1.4 $1.5 $1.6 $0.6 $0.8 $2.3 $1.0 Depreciation and Amortization Source: Okaloosa County Comprehensive Annual Financial Reports 2008 - 2013 3 Packet Pg. 47 Airline Revenues are a Modest Share of Total Operating Revenues 100% 90% 78% 78% 79% 80% 74% 76% 75% 75% 70% 60% 50% 40% 30% 26% 24% 25% 25% 22% 22% 21% 20% 10% 0% 2008 2009 2010 2011 2012 2013 2014 Estimate Airline Revenues Non-Airline Revenues 4 Packet Pg. 48  Very Low and Stable Cost Per Enplaned Passenger (CEP) $7.00 $6.06 $6.00 $5.59 $5.63 $5.22 $5.33 $4.98 $5.00 $4.68 $4.63 $4.00 $3.00 $2.00 $1.00 $0.00 2008 2009 2010 2011 2012 2013 2014 Est. 2015 Est. Fiscal Year Ended September 30th 5 Packet Pg. 49  NW Florida Regional Airport (VPS) Revenues generated from Concessions Agreements, revenue parking, landing fees and terminal rents. The PFCs and CFCs generated from airline tickets and rental car surcharges provide user fee revenues to fund specific projects and service debt. Revenue Budget Variance Category FY 12 Actual $ FY 13 Actual $ FY 14 Original$ FY 15Approved$ +/- Operating 8,939,594 8,122,199 7,769,799 7,449,039 Revenue (320,760) Misc. Rev. 165,000 204,000 135,000 110,000 Interest (25,000) Cash 8,250,000 6,850,000 5,885,000 3,000,000 (2,885,000) Passenger 9,101,778 7,604,000 5,934,124 8,454,236 Facility Charge (PFC) & Cash 2,520,112 Customer 2,777,500 3,573,000 3,826,472 4,026,603 Facility Charge (CFC) & Cash 200,131 Total 29,233,872 26,353,199 23,550,395 23,039,878 (510,517) 6 Packet Pg. 50  VPS Revenues 10 9 8 7 Millions 6 5 4 3 2 1 0 Operating Miscellaneous Cash PFCs & Cash CFCs & Cash Revenue FY 12 Actual FY 13 Actual FY 14 Original FY 14 Approved 7 Packet Pg. 51  NW Florida Regional Airport (VPS) Expenditures include cost for labor, operational and maintenance, capital costs, debt service, outside contract services, reserves and other unanticipated costs Expenditures Budget Category FY 12 Actual FY 13 Actual FY 14 Original FY 15 Proposed Personnel 1,443,230 1,946,665 2,112,504 2,273,391 Services Operating 5,479,015 6,700,740 7,253,760 5,701,807 (O&M) Costs Capital Outlay 629,649 216,751 187,400 64,441 Debt Service 1,723,950 1,716,170 1,691,919 1,455,875 Sheriff Contract 1,029,981 0 0 0 Reserves 18,358,351 14,579,957 13,445,090 12,101,232 Total 28,664,176 25,160,283 24,690,673 21,596,746 (1) Includes $107K Personnel Exp/$100K Internal Audits/ $120K for Mgt Consultant increase anticipated in RFP)/ and $200K for R&M Spares 8 Packet Pg. 52  VPS Expenditures 30 25 20 Millions 15 10 5 0 FY 12 Actual FY 13 Actual FY 14 Original FY 15 Approved (1) Includes $107K Personnel Exp/$100K Internal Audits/ $120K for Mgt Consultant increase anticipated in RFP)/ and $200K for R&M Spares 9 Packet Pg. 53 AIRPORTS DEPARTMENT FY 2015 Budget Summary AIRPORT OPERATING EXPENSE 2014 2015 % +/- VPS $7,253,760 $7,974,478(1) 9.9% CEW $362,809 $211,882(2) -41.3% DTS $248,172 $181,599(3) -26.3% TOTAL O&M $7,864,741 $8,370,381 6.4% (1) Includes $107K Personnel Exp/$100K Internal Audits/ $120K for Mgt Consultant increase anticipated in RFP)/ and $200K for R&M Spares (2) Access Road Land Purchase Debt Service ($484,192) Omitted (3) Lower Capital Equipment Purchases Packet Pg. 54  AIRPORTS REVENUE 2014 2015 %+/- VPS $7,769,790 $7,449,039 -4.1% CEW $418,451 (1)$372,352 -11.0% DTS $674,366 (2)$604,100 -10.4% TOTAL OP REV $8,862,607 $8,425,491 -4.9% PFC Rev $1,799,124 $1,454,236 -19.1% CFC Rev $1,610,270 $1,526,603 -5.2% Misc Rev (Interest) $135,000 $110,000 -18.5% TOTAL REV $12,407,001 $11,516,330 -7.2% (1)Reduced fuel flowage/rent (L3 & BAE downturn) (2)Regal reduced fuel flowage Packet Pg. 55  Financial Bottom Line FY15 Op Revenue $7,449,039 $372,352 $604,100 FY15 Op Expense $7,974,478 $213,093 $182,810 Operating Earnings ($419,633) 160,470 $422,501 Net Operating Earnings $55,110 Other Revenue $3,090,839 $3,145,949 $376,441 Capital Outlay $1,940,067 Debt Service $829,441 Increase to Reserves Packet Pg. 56  Benchmarking CY13 Performance Performance Measure NW Florida NW Florida Pensacola