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FY 11 Airport Budget Recommendations

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Aviation Department Mission Statement

To provide a safe and secure air transportation system that is economically and environmentally sustainable while supporting regional growth

Aviation Passenger Traffic Enplaned passengers

In ThousandsACTUALFY 2009

BUDGETFY 2010

FORECASTFY 2010

Change Forecast FY10

vs. Actual FY09

BUDGETFY 2011

Change Budget FY11

vs. Forecast FY10

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%

Load Factor 80.7% 79.4% 80.3%

(0.4%) pts 81.2% 0.9% pts

3

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.

Domestic and International Enplaned Passengers FY 2001 – FY 2011

4

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Forecast

2011 Budget

Domestic Passengers International Passengers Total Enplaned Passengers

Domestic and International Passengers Distribution - FY 2010 versus FY 2001

5

91%

9%

2001Domestic International

85%

15%

2010Domestic International

Commercial and General Aviation Operations 2001 - 2011

6

Based on TAF data by calendar year

-

50,000

100,000

150,000

200,000

250,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Forecast

2011 Forecast

Air Carrier Air Taxi & Commuter General Aviation

Commercial and General Aviation Operations - 2010 versus 2001

7

69%

16%

15%

2010Air Carrier Air Taxi & Commuter General Aviation

53%

19%

28%

2001Air Carrier Air Taxi & Commuter General Aviation

Key Comparative Performance Data FY 2009

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Fort Lauderdale /Hollywood

Miami Palm Beach Jacksonville Orlando Tampa Fort Myers

Number of Enplaned Passengers (in thousands) 10,468 16,884 3,040 2,782 16,799 8,561 3,737Number of Operations 249,986 348,487 142,358 95,927 284,998 204,284 84,526Landed Weight (million lbs) 13,112 30,172 3,646 4,484 20,853 10,467 n/aCost per Enplaned Passenger (CPE) $5.44 $16.48 $6.93 $5.48 $5.51 $4.93 $7.19Landing Fees per 1,000 lbs $1.05 $1.18 $1.20 $1.14 ** $1.43 $1.08 $2.57Average Terminal Rent per SqFt $47.13 $65.14 $59.39 $23.60 ** $102.01 n/a n/aOperating Revenues (in thousands) $175,267 $521,600 $63,301 $59,346 ** $341,999 $165,718 $83,628Concession Revenue per Enplaned Passenger $4.40 $6.13 $5.32 $4.80 ** $9.46 n/a $5.82Nonoperating Revenues (in thousands) $57,184 $81,900 $17,855 $18,691 ** $76,168 $38,678 $16,185Operating Expenses* (in thousands) $119,089 $386,940 $45,602 $40,878 ** $196,975 $91,254 $62,218Debt Service Coverage 1.59 1.45 1.65 1.83 1.33 1.48 n/aRevenue Bonds - Moody's Rating A1 A2 A2 A2 Aa3 Aa3 A2

* Before depreciation** 2008 Datan/a = Data not available

Airline Market Share FY 2009

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19.0%

16.7%

14.2%11.5%

8.8%

7.6%

5.9%

4.6%

3.5%2.0% 6.3%

Spirit

Southwest Airlines Co.

jetBlue

Delta Airlines, Inc.

US Airways/America West

Continental Airlines

Air Tran Airways

American Airlines

Northwest Airlines

Air Canada

Non-signatory

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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

Statement of Revenues, Expenses, & Changes in Net Assets

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$ Thousands Actual Forecast Budget BudgetFY 2009 FY 2010 FY 2010 FY 2011

Operating Revenues 175,267$ 171,939$ 178,370$ 180,180$ 1,810$ 1.0%

Operating Expenses 119,089 125,339 128,604 123,485 (5,119) -4.0%

Operating Income before Depreciation 56,177 46,600 49,766 56,695 6,929 13.9%Depreciation 35,343 35,500 35,500 35,500 - 0.0%

Operating Income 20,834 11,100 14,266 21,195 6,929 48.6%Nonoperating Revenues 57,184 54,590 51,610 54,462 2,853 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%

Increase in Net Assets 53,305$ 38,973$ 39,458$ 97,241$ 57,783 146.4%

Variance - BudgetFY11 vs. FY10

Revenue, Expense and Net Income - Five year Comparison

12

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

ActualFY 2007

ActualFY 2008

ActualFY 2009

ForecastFY 2010

BudgetFY 2011

Operating Revenue Operating Expense

Operating Income before depreciation Net Income

Operating Revenue Comparison

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$ Thousands Actual Forecast Budget BudgetFY 2009 FY 2010 FY 2010 FY 2011

Airlines 56,907$ 57,139$ 59,290$ 58,086$ (1,204)$ -2.0%

Concession Revenues: Rental Cars 26,224 24,906 25,413 26,920 1,507 5.9% Food & Beverage 7,862 8,695 7,800 8,844 1,044 13.4% News & Gifts 7,126 4,864 7,095 6,854 (241) -3.4% All Others 4,833 4,809 5,481 5,225 (256) -4.7% Sub-total 46,045 43,273 45,789 47,843 2,054 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%

Total Operating Revenues 175,267$ 171,939$ 178,370$ 180,180$ 1,810$ 1.0%

Variance - BudgetFY11 vs. FY10

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:

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Concessions Rental Cars $1.5M Food & Beverage $1.0MCustomer Facility Charges $0.6MAirline Revenue (Consolidation) ($1.2M

)

Operating Revenue Distribution – Budget 2011

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Airlines32%

Concession Revenues

27%

Parking22%

Customer Facility Charges

13%

Building & Ground Rent

5%

Other Operating Revenues

1%

Parking Transactions and Average Revenue per Transaction

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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

-

0.05

0.10

0.15

0.20

0.25

12 mths ended March

2008

12 mths ended March

2009

12 mths ended March

2010

Average Number of Transactions per Enplaned Passenger

$-$2 $4 $6 $8

$10 $12 $14 $16 $18 $20

12 mths ended March

2008

12 mths ended March

2009

12 mths ended March

2010

Average Revenue per Transaction

Parking Revenue Distribution - 2010 versus 2008

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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

Hourly9%

Daily69%

Park & Save6%

Valet16%

Twelve Months ended Mar-08Hourly

9%

Daily69%

Park & Save9%

Valet13%

Twelve Months ended Mar-10

Concession Revenue Mix – Budget FY 2011 versus Actual FY 2009

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Rental Cars57%

Food & Beverage

17%

News & Gifts15%

All Others11%

Actual 2009

Rental Cars56%

Food & Beverage

19%

News & Gifts14%

All Others11%

Budget 2011

Airline Rates and ChargesFive year Comparison

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Airline Terminal Rates and Landing Fees are budgeted to stay at current rates:

Industry Average Actual Budget Forecast Budget

FY 2007 ^ FY 2009 FY 2010 FY 2010 FY 2011

Terminal Rate 47.13 47.13 47.13 47.13

Landing Fees 1.05 1.05 1.05 1.05

CPE $7.16 $5.44 $5.75 $5.31 $5.25

^ Latest available data based on large hub airports

Airline versus non-Airline Revenue FY 2009

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32.5%45.8%

32.5%46.7%

36.3% 30.5%44.5% 43.8%

67.5%54.2%

67.5%53.3%

63.7% 69.5%55.5% 56.2%

0%10%20%30%40%50%60%70%80%90%

100%

Fort Lauderdale/Hollywood

Miami Palm Beach Jacksonville Orlando Tampa Fort Myers Industry Average (2007)

Airline Revenue Non-airline revenue

Operating Expenses Comparison

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$ Thousands Actual Forecast Budget BudgetFY 2009 FY 2010 FY 2010 FY 2011

Contract Services 34,072$ 37,296$ 38,588$ 39,183$ 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 3.8%

Total Operating Expenses 119,089$ 125,339$ 128,604$ 123,485$ (5,119) -4.0%

Variance - BudgetFY11 vs. FY10

FY 2011 Preliminary Operating Expense Highlights (versus FY 2010 Budget)

Operating Expenses have been reduced by 4% primarily due to reductions in:

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Aircraft Rescue and Firefighting (ARFF)

($3.3M)

Property Insurance ($1.9M)

Broward Sheriff Office – LEO (0.8M)

Operating Expense Distribution – Budget 2011

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Contract Services32%

Personnel 25%

BSO - LEO's13%

Utilities10%

Insurance 7%

BSO - ARFF5%

Cost Allocation

2%

Equipment Maintenance

1%

Other5%

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FY 2011 Projected Revenues and Proposed Appropriations

In millionsOperating Capital Total

Projected Revenues

Fund Balance $28 $46 $75Debt Service Fund Balance 48 48 Operating Revenues 180 180 Passenger Facility Charges 26 18 44 Interest Income 9 1 9 Bond Proceeds 15 15 State and Federal Grants 2 390 392 Future Financing / Passenger Facility Charge collections 370 370 Total $293 $840 $1,133

Proposed Appropriations

Operating Budget 156 156 Capital Budget 840 840 Debt Service Budget 89 89 Debt Service Requirement 49 49 Total $293 $840 $1,133

Aviation Capital Projects FY2011 – FY2015

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In thousands FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Airfield

Permanent VOR 7,000 - - - - FLL Rehabilitation of Runway 9L-27R - - - 2,250 27,750 Virtual Ramp Control/Aircraft Gate and Runway Monitoring 500 - - - - Replace Old Airfield Signage 150 - - - - Runway 9R-27L Expansion 714,431 - - - - Land Acquisition for RW 9R-27L Expansion 40,000 - - - - Taxiway C East 15,000 - - - - Sub-Total 777,081 - - 2,250 27,750

TerminalIn-Roadway Crosswalk Warning Lights 300 - - - - Int Chilled Water Piping Ext between Terminals 1, 2, 3 & 4 - - 250 2,563 - Matrix Security System Upgrade 500 - - - - Tenant Relocations 1,800 500 500 500 500 Terminal Modernization 3,200 33,301 40,050 17,664 5,785 Terminal 4 Gate Replacement (Western Expansion) 30,000 - - - - Terminal 4 Gate Replacement (Eastern Expansion) - 8,491 37,981 184,937 18,966 InLine EDS Baggage Systems (Constr) - 25,000 50,000 25,000 - Next Bus Signage and Automatic Vehicle Locator (AVL) System Upgrades 260 - - - - Sub-Total 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

North Perry Projects - 770 298 - -

Total Capital Projects 822,809 74,482 150,752 271,240 62,264

Reserves 17,593 17,760 17,929 18,099 18,271

Total Appropriations 840,402 92,242 168,681 289,339 80,535

FY 2011 Capital Improvement Budget with Funding Sources

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In thousands

Fort Lauderdale Hollywood / International TOTAL BCAD CASH FAA FDOT PFC's BONDSAirfield:

Replace Old Airfield Signage 150 - - - 150 - Permanent VOR 7,000 - - - 7,000 - Land Acquisition for RW 9R-27L Expansion 40,000 - - - - 40,000 *Runway 9R-27L Expansion 714,431 - 300,000 79,000 - 335,431 *Taxiway C East 15,000 - 11,250 - 3,750 - Virtual Ramp Control/Aircraft Gate and Runway Monitoring 500 500 - - - -

777,081 500 311,250 79,000 10,900 375,431 Terminal:

Tenant Relocations 1,800 1,800 - - - - Terminal 4 Gate Replacement (Design only) 30,000 - - 19,000 11,000 Terminals 1 - 3 Modernization 3,200 3,200 - - - - Matrix Security System Upgrade 500 - - - 500 - In-Roadway Crosswalk Warning Lights 300 - - - 300 - Next Bus Signage and Automatic Vehicle Locator (AVL) System Upgrades 260 260 - - - -

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 - - - -

TOTAL CAPITAL PROJECTS 822,809 15,308 311,250 79,000 30,820 386,431

* PFC Backed Bonds

FUNDING SOURCES