Greater Orlando Aviation Authority

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Leonard Sanders
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1 Greater Orlando Aviation Authority Orlando International Airport & Orlando Executive Airport Budgets Fiscal Year Greater Orlando Aviation Authority Orlando, Florida

Greater Orlando Aviation Authority Fiscal Year 2018 Budget-in-Brief ECONOMIC OUTLOOK Central Florida continues to attract the most visitors of any destination in the United States.

2 Greater Orlando Aviation Authority Fiscal Year 2018 Budget-in-Brief ECONOMIC OUTLOOK Central Florida continues to attract the most visitors of any destination in the United States. More than 68 million people traveled to the region during 2016, marking a nearly 3 percent increase over the previous year. Orlando International Airport (MCO) is the area s gateway, and the 2 nd busiest airport in Florida, serving more than 43 million passengers in fiscal year The Orlando MSA encompasses one of the largest leisure centers in the world. Seven of the top ten theme parks, based on attendance, are located in the area. The record number of visitors are drawn to Central Florida primarily due to the renovations and development of new attractions at the theme parks. Seven new attractions have opened or are scheduled to open during Examples include Pandora-The World of Avatar, Volcano Bay, Disney Springs, Frozen Ever After, Harry Potter s Diagon Alley, and Mako, Orlando s tallest, fastest, and longest roller coaster. Additionally, Central Florida continues to diversify its economy by emphasizing opportunities for business. Strong increases in the area s population and employment, the strength of Orlando s world-class tourism industry, and the continued development of the defense, high-tech, and digital media industry sectors have all contributed to the growth of business travel. According to the Metro Orlando Economic Development Commission, a competitive cost environment has also favored the Orlando economy in attracting new businesses, which in turn, generate additional travel demand. Major corporations continue to choose Central Florida for large and lucrative developments. KPMG is building its Global Training Center in Lake Nona with opening scheduled in ADP created 1,600 jobs with the opening of its regional office; and Amazon recently announced it will open an 850,000 square foot fulfillment center south of MCO, creating 1,500 jobs. The combination of private and public investment have contributed to Orlando being ranked number three by Forbes Magazine for future job growth. Orlando has been recognized as having the world s largest cluster of simulation companies; named one of the top 10 American Cities of the Future by FDI Magazine; and the Best City for Recreation, Best Foodie City, and Most Pet-Friendly City by WalletHub. Playing a significant role in these impressive evaluations is Orlando International Airport. As the first and last impression many visitors have of Central Florida, it is important that we strive to improve our facilities to support increasing demand and the dynamic growth of the region. The result of the historic visitation is a multi-billion dollar surge in development across the region. As the global gateway of choice for the majority of Central Florida s visitors, Orlando International has responded to both the current and projected demand for convenient access by implementing its own major renovation and construction program. MCO s commitment to expanding its facilities parallels the investment by the city and county along with our tourism, medical, high-tech, and sports partners. MCO s expansion will enhance customer service and maintain the standard of excellence that we define as The Orlando Experience.

MAJOR INITIATIVES ORLANDO INTERNATIONAL AIRPORT Expansion in the north and the south portions of the airport are now underway with the approval of a $3.

The CIP includes projects developed to modify and expand the existing North Terminal capacity as well as adding capacity to accommodate passenger growth in areas relating to international passenger

3 MAJOR INITIATIVES ORLANDO INTERNATIONAL AIRPORT Expansion in the north and the south portions of the airport are now underway with the approval of a $3.56 billion dollar Capital Improvement Plan (CIP). The CIP includes projects developed to modify and expand the existing North Terminal capacity as well as adding capacity to accommodate passenger growth in areas relating to international passenger processing, public circulation in the ticket lobbies, and the renovation of Airside 4. The CIP also includes the South Airport Automated People Mover (APM) Complex that connects to the Intermodal Terminal Facility (ITF) and will support future multi-modal travel connections, and the first phase of the South Terminal Complex. South APM and ITF The airfield, which will serve both the current North and future South Terminals, is also undergoing rehabilitation of Taxiway C, the Taxiway G & H Safety Areas, and Remarking Runways 17R-35L. The design of Taxiway J s rehabilitation began in 2017, and construction is planned for Major construction programs in the North Terminal Complex continued through fiscal year 2017, with completion scheduled for These include the Ticket Lobby Improvement Program, the Airside 4 Improvements Program, and the Design-Build- Operate-Maintain agreement for the replacement of the Airsides 1 and 3 APM systems and vehicles, as well as the new South APM vehicles. Design of the 16-gate South Terminal C is expected to be completed later in 2017 with initial construction beginning in fiscal year The flexible gate configuration will service both domestic and international passengers and allow for narrow body, jumbo and super jumbo aircraft. South Terminal C will include an enhanced arrival and departure experience with arrivals on the 3 rd level, direct contact gates, and will alleviate double bag handling. Security checkpoints will be enhanced with larger queue areas, expandable security checkpoints and employee screening separated from passenger screening. Other design features include a tote baggage system that allows early bag storage, improves energy efficiency and noise reduction, and delivers the bags closer to the aircraft. The primary goals for the South APM/ITF and South Terminal C are to provide seamless integration of multi-modal transportation, flexible expansion on demand, incorporate non-airline revenue opportunities, improve passenger circulation, and incorporate LEED 4 compliance. South Terminal C is expected to open at the beginning of fiscal year These planned enhancements will enable Orlando International Airport to continue providing a high level of customer service. South Terminal C The focus of current construction relates to the South Terminal Complex, including the completion of the South APM/ITF during the fall of 2017 and the design of the first phase of South Terminal C, which began in 2017.

BUDGET HIGHLIGHTS Coordination of the Authority s annual budget and fiveyear capital program is one of the keys to successfully implementing the Authority s Strategic Plan.

projects Fair and reasonable rates and charges Expenses Expenses include appropriations for Debt Service, the Operation and Maintenance Fund, and Fund Deposits. Expenses are budgeted at $414.

4 BUDGET HIGHLIGHTS Coordination of the Authority s annual budget and fiveyear capital program is one of the keys to successfully implementing the Authority s Strategic Plan. Some of the key principles on which the budget has been developed include: Basic services funded at adequate levels Revenues estimated at reasonable amounts Prioritization of capital and maintenance projects Fair and reasonable rates and charges Expenses Expenses include appropriations for Debt Service, the Operation and Maintenance Fund, and Fund Deposits. Expenses are budgeted at $414.0 million for This includes Debt Service payments of $102.9 million and the Operation and Maintenance Fund with O&M Reserve of $311.1 million. Cost per enplanement is currently estimated at $7.75. Budgeted Expenses 2018 Orlando International Airport $414,039 (in thousands) ORLANDO INTERNATIONAL AIRPORT Revenues Revenues are projected to increase $33.4 million, or 7 percent over the fiscal year 2017 budget. Airline rentals, fees, and charges are projected to increase $14.4 million due to an increase in rates, and an overall projected increase in activity. Non-airline revenues are projected to increase $19.0 million due to increases in car rentals, parking, concessions, and hotel. $42,666 $11,279 Budgeted Revenues 2018 Orlando International Airport $518,254 (in thousands) $200,179 $16,087 $311,139 Operation and Maintenance Fund At $311.1 million; the Operation and Maintenance budget, including the O&M Reserve for 2018, is 10 percent over the fiscal year 2017 budget. The most significant increases are a result of budgeting the first full year for the South APM/ITF Complex. Other increases occurred in personnel and benefits with 51 additional positions, security contracts, technology, and maintenance contracts for the bag system and jet bridges. Debt Service Fund Debt Service and Fund Deposits O&M and O&M Reserve $102,900 $72,582 $79,421 $96,040 Debt service requirements are $102.9 million for fiscal year Of this amount, $95.3 million represents payments for senior debt and $7.6 million for subordinated debt. Airline Rentals, Fees, & Charges RAC Fees & Rents Concessions Interest & Other Other Bldgs & Grounds Parking & Ground Transportation Hotel Capital The fiscal year 2018 capital requests for asset rehabilitation, repair, or replacement, including the hotel, total $90.8 million. Capital funds are used

for airfield improvements, ground support equipment, building improvements, information technology improvements, and strategic initiatives at Orlando International Airport.

MAJOR INITIATIVES ORLANDO EXECUTIVE AIRPORT Through fiscal year 2017, and continuing into fiscal year 2018, the key project is the update of the electronic Airport Layout Plan (ealp), which is

5 for airfield improvements, ground support equipment, building improvements, information technology improvements, and strategic initiatives at Orlando International Airport. Capital projects are funded from the surplus cash flows generated from revenues, grants, bonds, PFC s, CFC s, and reallocation of unused prior capital funds. MAJOR INITIATIVES ORLANDO EXECUTIVE AIRPORT Through fiscal year 2017, and continuing into fiscal year 2018, the key project is the update of the electronic Airport Layout Plan (ealp), which is required by the FAA in order to initiate any further airfield and airfield-related projects. Commercial property development initiatives will continue, primarily along the State Road 50 corridor. Design of the Runway Incursion Mitigation project is planned for fiscal year 2018, with construction planned for fiscal year Expenses For fiscal year 2018, expenses increased $669 thousand from the 2017 budget due the increase in a management contract and maintenance for Colonial Promenade. Capital projects for fiscal year 2018 are budgeted at $2,350 thousand which will be funded with prior fiscal year funds. $1,491 Budgeted Expenses 2018 Orlando Executive Airport $3,516 (in thousands) $1,208 $93 $330 $394 Personnel Contractual Services Maintenance Other Insurance Revenues Revenues at Orlando Executive Airport (ORL) increased $558 thousand or 21 percent from the 2017 budget. During fiscal year 2017, ORL assumed management for the Colonial Promenade shopping plaza, which will increase rents, but will be offset by additional building maintenance. Budgeted Revenues 2018 Orlando Executive Airport $3,516 (in thousands) $2,462 $78 $736 $240 Aviation Related Other Revenue Commercial Properties Contribution from Revenue Fund

6 GREATER ORLANDO AVIATION AUTHORITY ORLANDO INTERNATIONAL AIRPORT FISCAL BUDGET ANTICIPATED REVENUE Budget Budget Airline Rentals, Fees and Charges $ 200,180,000 $ 185,817,000 Nonairline Revenues 313,421, ,195,000 Interest Revenue 4,653,000 2,861,000 Total Deposits $ 518,254,000 $ 484,873,000 APPROPRIATIONS 1998 Debt Service Fund $ - $ 543, Debt Service Fund 3,575,000 16,729, Debt Service Fund 27,697,000 33,920, Debt Service Fund 17,973,000 21,121, Debt Service Fund 19,828,000 12,659, Debt Service Fund 9,539,000 9,996, Debt Service Fund 1,853,000 1,853, Debt Service Fund 9,388,000 9,808, Debt Service Fund 11,887,000 9,391, Debt Service Fund 24,470,000 30,208,000 Available PFC Revenues (30,867,000) (69,444,000) Operation and Maintenance Fund 306,494, ,622,000 Operating Reserve Fund 4,645,000 4,555,000 Discretionary Fund 7,557,000 21,446,000 Total Appropriations $ 414,039,000 $381,407,000 Remaining Revenues $ 104,215,000 $ 103,466,000 1

7 GREATER ORLANDO AVIATION AUTHORITY ORLANDO EXECUTIVE AIRPORT FISCAL BUDGET Budget Budget ANTICIPATED REVENUE Aviation Related $ 736,000 $ 723,000 Commercial Properties 2,462,000 1,951,000 Other Revenue 78,000 44,000 Total Anticipated Revenue 3,276,000 2,718,000 Contribution from OEA Revenue Fund 240, ,000 Total Deposits $ 3,516,000 $ 2,847,000 APPROPRIATIONS Operations & Facilities 1,436, ,000 Safety & Security 1,134,000 1,116,000 Administration 596, ,000 Other Expenses 350, ,000 Total Appropriations $ 3,516,000 $ 2,847,

GLOBAL CONGRESS PANEL DISCUSSION. Phil Brown Executive Director, Greater Orlando Aviation Authority August 18, 2015

GLOBAL CONGRESS PANEL DISCUSSION Phil Brown Executive Director, Greater Orlando Aviation Authority August 18, 2015 In the Beginning The Orlando Experience Past, Present and Future 1977 Today 1978 2013