Budget Briefing Fiscal Year 2014 Budget Honorable Members of the City Council April 23, 2013 Page 1
FY 2014 Budget Goals and Objectives Develop and implement a plan of execution for the terminal redevelopment program Operate more efficiently and effectively while enhancing customer service Reevaluate ate business strategies and contracts Improve cost recovery activities Upgrade information technology infrastructure Page 2
Description Operating Statement Forecast FY 2013 Budget FY 2013 Forecast FY 2014 Budget Operating Revenue $ 127,045,600 $ 129,732,500 $ 132,066,000 Passenger Incentive Rebate (9,559,900) (9,901,500) (9,848,200) Operating Expenses (87,934,800) 800) (87,813,600) 813 (88,287,400) Net Operating Income 29,550,900 32,017,400 33,930,400 PFCs for Equipment 1,150,000150 000 1,150,000150 000 0 Interest Income 2,500,000 1,800,000 2,000,000 Total Sources and Revenues 33,200,900 34,967,400 35,930,400 Capital Equipment (2,082,000) (2,535,600) (2,182,800) Increase to Airport Reserves $ 31,118,900 $ 32,431,800 $ 33,747,600 Page 3
FY 2014 Operating Revenues Budget of $122.2 million (in millions) Landside Concessions $47,181 39% Airlines $47,862 39% General Aviation $1,391 1% State Aviation Tax $2,360 2% Leases $5,132 4% Other $3,990 3% Terminal Concessions $14,302 12% Note: Total Operating Revenues of $132,066,00 less Airline PAX Rebate of $9,848,200 equals $122,217,800. Source: Airport records. Page 4
Comparison of Airline Revenues Revenue Category FY 2013 Budget FY 2013 Forecast FY 2014 Budget Landing Fees $ 21,781,400 $ 23,388,900388 $ 24,039,600 Terminal Rents 27,828,300 27,023,600 26,663,500 Airline Revenue Sharing (9,559,900) (9,901,500) (9,848,200) Support Buildings 4,845,200 4,877,600 4,903,200 Passenger Loading Bridge 1,639,100 1,577,200 1,451,900 Fuel Farm 519,300 526,600 528,100 Remain overnight 90,100 124,300 124,300 TOTAL AIRLINE REVENUE $ 47,143,500 $ 47,616,700 $ 47,862,400 Enplaned Passengers 9,559,900 9,901,500 9,848,200 Page 5
Cost Per Enplaned Passenger (CPE) Airline CPE are the industry s standard performance indicator. $7.50 Actual Forecast $6.50 $5.50 $4.50 $3.50 $2.96 $2.95 $3.12 $3.17 $3.41 $3.41 $3.58 $3.83 $3.88 $3.92 $2.50 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Source: Airport records. Page 6
Revenue Category Comparison of Concession Revenues FY 2013 Budget FY 2013 Forecast FY 2014 Budget Auto Parking $ 27,161,500 $ 27,706,200 $ 28,699,900 Car Rental 15,674,100 16,676,000 16,767,800 Ground Transportation Fees 2,700,000 2,063,900 1,713,500 Food and Beverage, Vending 5,624,100, 6,720,200, 7,963,600, Retail 4,513,900 4,525,500 4,525,500 Flight Kitchen 1,142,000 1,172,800 1,179,500 Advertising Media 620,000 690,600 633,700 TOTAL CONCESSIONS $ 57,435,600 $ 59,555,200 $ 61,483,500 Page 7
FY 2014 Operating Expenses Budget of $88.3 million (in millions) Inter Gov't / ARFF $6,025 7% Utilities $5,990 7% PR / Other $4,253 5% Salaries / Benefits $44,069 50% Services $6,833 8% Materials & Supplies $9,288 10% Maint. Contracts $11,842 13% Source: Airport records. Page 8
Operating Expenses - Salaries and Benefits Description FY 2013 Budget FY 2013 Forecast FY 2014 Request Total Salaries and Benefits $ 43,148,600 $ 42,611,500 $ 44,068,800 FY14 Benefits Assumptions: Assumed a 2% salary adjustment Rates for medical insurance remain flat Increase in retirement rates by 6.9% Page 9
Major Expense Category Operating Expenses - Line Items FY 2013 Budget FY 2013 Forecast FY 2014 Request Materials and Supplies $ 8,590,300 $ 9,721,400 $ 9,288,300 Services 25,929,000 25,499,300 24,665,200 Other Operating 2,884,900 3,977,600 4,240,100 Intergovernmental 7,382,000 6,003,800 6,025,000 Total $ 44,786,200 $ 45,202,100 $ 44,218,600 Page 10
Capital Equipment Budget Request Replacement Other 36% FY 2014 Capital Equipment By Type FY 2014 Major Capital Equipment Highlights New Other 7% Replacement Fleet 57% Mack Dump Truck (3) $ 580,000 Mack Deicer Flusher 400,000 AVI E2 Readers 288,000 Garbage Truck 260,000 Replacement New Total Fleet $ 1,240,000 $ 0 $ 1,240,000 Funding Replacement New Total Airport Funds $ 2,020,800 $ 162,000 $ 2,182,800 Other 780,800 162,000 942,800 PFC Funds 0 0 0 Total $ 2,020,800 $ 162,000 $ 2,182,800 Total $ 2,020,800 $ 162,000 $ 2,182,800 Page 11
Capital Improvement Program FY 2014 Budgeted CIP Projects Terminals 16% Airfield 8% Auxiliary Airports / GA 1% FY 2014 Source of Capital Projects Fund Airport Funds 23% AIP / TSA Grants 7% TRP 59% Landside / Roads 1% Others 4% Runway Deicing 11% CFC 31% PFC 39% Use of Funds: Source of funds: Terminals $ 28,193,600 AIP / TSA Grants $ 12,839,700 Airfield 14,181,700 Passenger Facility Charges 70,257,000 Auxiliary Airports / GA 1,540,700 Customer Facility Charges 55,802,000 Landside / Roads 2,069,900 900 Airport Funds 40,737,400 400 Other Projects 6,718,400 Runway Deicing 20,879,800 Terminal Redevelopment (TRP) 106,052,000 Total $ 179,636,100 Total $ 179,636,100 Page 12
New Capital Improvement Projects for FY 2014 TERMINAL PROJECTS = $ 28,193,600 Concourse and Terminal Renovations Universal Passenger Processing System Concourse A & TU1 Airport Operations Office Building Restroom Renovations o TU2 CTX Upgrade AIRFIELD PROJECTS = $ 14,181,700 Taxiway S Pavement Reconstruction Concourse B Apron Reconstruction PCC Pavement Joint Seal Program Snow Chemical Storage Building (Design) FedEx Relocation CASS System Note: Partial listing of projects Page 13
New Capital Improvements Projects for FY 2014 (continued) Auxiliary Airports = $ 1,540,700 SVRA Maintenance Building Remodel & Apron Pavement Rehabilitation TVY Water / Sewer Study & Preliminary Engineering Landside / Roads and Grounds = $ 2,069,900 Asphalt Overlay Program Phase IX Overlay Entrance / Exit Roads (Design) Runway Deicing = $ 20,879,800 Taxiway S Deicing Pad / Facility (Design) Terminal Redevelopment Program (TRP) = $ 106,052,000 TRP Specialty Consultants Rental Car Service Facilities Rental Car Quick Turn Around Facilities Note: Partial listing of projects Page 14
Sources & Use of Funds: FY 2014 Source & Use of Funds Forecast for Capital Projects Beginning Balance 07/01/13 $ 243,668,500 Source of Funds: PFC Revenues 40% Sources of Funds CFC 32% Proceeds from Operations 35,930,400 Federal Grants 12,839,700 PFC Revenues 70,257,000 Customer Facility Charges (CFC) 55,802,000 Total Sources of Funds: $ 174,829,100 Use of Funds: Capital Projects ($ 179,636,100) Capital Equipment (2,182,800) Federal Grants 7% Capital Equipment 1% Budgeted CIP Projects Proceeds from Operations 21% Total Use of Funds: ($ 181,818,900) Ending Balance Forecast 06/30/14 $ 236,678,700 Capital Projects 99% Page 15
TERMINAL REDEVELOPMENT PROGRAM (TRP) UPDATE Page 16
TRP Public Engagement Campaign Page 17
Advertising Campaign Web site: MyAirportSLC.com In-airport brochures Shuttle bus banners / cards In-airport dioramas / digital displays Airport column and wall graphics Newspaper / magazine ads Online ads Facebook / Twitter Stories placed in local media May 2013 Interaction Campaign Sponsoring a booth at the Utah Tourism Conference in St. George to gather live feedback and engage discussion Ad distributed to newsletter list Meeting with architectural a and engineering community Page 18
Sam mple Maga azine Ad QR Code linking to MyAirportSLC.com Page 19
Summer 2013 Visioning sessions with Airport Board members combined with City Council members Opportunities for Board member guests to visit the Airport and provide input Pop-up public engagement activity in the Airport Public meetings targeting different audiences Design workshops with invited stakeholders Page 20
TRP Key Personnel Michael Brimley, Esq., Peel Brimley LLP Construction Legal Counsel Mike Williams, Making Projects Work, Inc. Program Director Tom Darmody, Hellmuth, Obata, Kassabaum (HOK) Program Architects Thom Lang, Delta Air Lines, Inc. Airline Representative Jeff Schulthess, Ricondo & Associates Airport Consultant Brandon Johnson, Esq., Chapman and Cutler Bond Counsel Ken Fullerton, Public Financial Management, Inc. Financial Advisor Roy Block, R W Block Consulting Construction Management Process and Procedures Page 21
Preliminary Terminal Redevelopment Project Timetable 2013 Finalize Plan of Execution; Conduct public outreach; Initiate design 2014 Begin construction of Rental Car Service (RAC) Facilities 2015 Complete construction of RAC facilities; Begin construction of South Concourse (West) and Terminal 2016 Begin construction of New Parking Garage 2017 Begin construction of Terminal Roadway System 2018 Open Terminal, South Concourse (West), and New Parking Garage 2019 Demolish Terminals 1 & 2 and Existing Parking Garage Begin construction of South Concourse (East) 2020 Occupy gates on south side of South Concourse (East) 2021 Demolish existing connectors Construct apron on north side of South Concourse (East) 2022 Occupy gates on north side of South Concourse (East) 2024-2027 Renovate existing Concourses B, C, & D Page 22
Questions?? Salt Lake City International Airport Circa 2030 Page 23