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Metropolitan Airports Commission
Finance and Administration Committee
Agenda
Regular Monthly Meeting on Monday, July 07, 2014 at 9:30:00 AM
www.metroairports.org
METROPOLITAN AIRPORTS COMMISSION
FINANCE AND ADMINISTRATION COMMITTEE MEETING
Monday, July 7, 2014 - 9:30 a.m.
CANCELED
MEMORANDUM ITEM 1a
TO: Finance and Administration Committee
FROM: Karen Schaefer, Senior Financial Analyst (612-794-9143)
SUBJECT: REPORTS
Budget Variance Report – May 2014
DATE: June 23, 2014
The May Budget Variance Report is presented for your review with the first pages providing a summary of the year-to-date activity. Details for the variances are available in the report.
Operating Revenues are over budget $2.4 million or 1.9%.
Greater than Budget
T2- Other/Passenger – Greater FIS activity
Food & Beverage – Greater activity
Parking – Greater activity
Lower than Budget
Terminal 1-Lindbergh – Other Rentals – Delay in T1 checked baggage inspection fee
Passenger Services – Indoor advertising
Other Concessions – Outdoor advertising-billboards
-
500
1,000
1,500
2,000
2,500
3,000
Pas
se
ng
ers
=000
Enplaned Passengers by Month 2012
2013
2014
Operating Expenses are over budget $1.9 million or 3.3%. Greater than Budget
Personnel – Overtime and Doubletime related to winter weather events
Utilities – Natural Gas – Heating – Jet Fuel
Maintenance – Snow removal expenses
Non-Operating Revenues and Expenses are greater than budget $692,000 (revenues) or 47.7% Greater than Budget
Higher interest rate
Easement – Flying Cloud Airport, City of Eden Prairie
Net Revenues Available for Designation total $70.5 million.
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$=
00
0
Net Revenues Available for DesignationYear-to-Date
2013
2014
Metropolitan Airports Commission
May 2014 Budget Variance Analysis
Operating Revenue
($=000) 2013
Year to Date Dollar % Total 2014
Actual Actual Budget Variance Variance Budget
OPERATING REVENUES
Airline Rates & Charges
Airline Agreement
Landing Fees 21,892$ 22,655$ 22,525$ 130$ 0.6% 56,222$
Ramp Fees 2,571 2,845 2,778 66 2.4% 6,671
Airline R & R 1,449 1,495 1,493 1 0.1% 3,586
Terminal 1-Lindbergh - Rentals 14,795 15,418 15,163 255 1.7% 36,983
Terminal 1-Lindbergh - Other Rentals 1,586 1,846 2,015 (170) -8.4% 5,129
Concessions Rebate - - - - (9,840)
Total Airline Agreement 42,293 44,258 43,975 283 0.6% 98,750
Terminal 2-Humphrey Lobby Fees 6,079 7,390 7,092 298 4.2% 9,010
Terminal 2-Humphrey Other/Passenger Fees 894 1,094 964 130 13.5% 1,551
Total Airline Rates & Charges 49,266 52,742 52,030 712 1.4% 109,311
Concessions
Terminal/Other
Food & Beverage 5,301 5,961 5,485 476 8.7% 14,635
News 1,311 1,354 1,365 (12) -0.9% 3,739
Retail 1,930 1,802 1,817 (15) -0.8% 4,728
Passenger Services 1,717 1,592 1,785 (194) -10.8% 4,527
Total Terminal/Other 10,259 10,708 10,453 255 2.4% 27,629
Parking/Ground Transportation
Parking 34,315 36,766 35,129 1,637 4.7% 77,926
Ground Transportation Fees 2,136 2,348 2,280 68 3.0% 5,347
MSP Employee Parking 1,097 1,066 1,092 (26) -2.4% 2,629
Auto Rental-On Airport 6,368 7,202 7,283 (81) -1.1% 17,801
Total Parking/Ground Transportation 43,915 47,383 45,784 1,599 3.5% 103,703
Other Concessions 623 243 630 (388) -61.5% 1,878
Total Concessions 54,798 58,334 56,867 1,466 2.6% 133,210
Rentals/Fees
Buildings & Facilities 2,872 2,690 2,750 (60) -2.2% 7,228
Building Auto - CFC's 2,645 2,792 2,650 142 5.3% 10,100
Ground Rentals 3,752 3,677 3,567 110 3.1% 8,593
Reliever Airports 2,190 2,357 2,458 (101) -4.1% 6,154
Total Rentals/Fees 11,458 11,516 11,424 91 0.8% 32,075
Utilities and Other Revenue
Utilities 1,382 1,481 1,456 25 1.7% 4,405
GA/Airside Fees 1,095 1,000 960 40 4.1% 2,376
Consortium Fees 886 1,019 947 72 7.6% 2,857
Other Revenues 606 589 585 3 0.6% 1,544
Reimbursed Expense 1,234 908 912 (4) -0.5% 2,800
Total Utilities and Other Revenue 5,204 4,997 4,861 135,439 2.8% 13,981
Total Operating Revenue 120,726$ 127,588$ 125,183$ 2,405$ 1.9% 288,577$
Brackets ( ) Represent Revenue Items under Budget and Expense Items over Budget
2014
Year To Date
May 2014 Budget Variance Analysis
Operating Expenses
Non-Operating Revenues & Expenses
($=000) 2013
Year to Date Dollar % Total 2014
Actual Actual Budget Variance Variance Budget
Total Operating Revenue 120,726$ 127,588$ 125,183$ 2,405$ 1.9% 288,577$
OPERATING EXPENSE
Personnel 28,441$ 28,646$ 28,327$ (319)$ -1.1% 71,375$
Administrative 522 836 839 3 0.3% 1,527
Professional Services 1,404 1,329 1,354 24 1.8% 4,849
Utilities 6,669 8,313 7,176 (1,137) -15.8% 18,565
Operating Services 4,674 6,025 6,031 6 0.1% 19,405
Maintenance 12,512 12,463 12,013 (449) -3.7% 29,971
Other 1,362 1,613 1,615 2 0.1% 3,103
Total Operating Expenses 55,584$ 59,226$ 57,355$ (1,871)$ -3.3% 148,794$
(excludes depreciation and noise amortization)
Net Operating Revenues 65,142$ 68,362$ 67,828$ 534$ 0.8% 139,782$
NON-OPERATING REVENUE (EXPENSES)
($=000) 2013
Year to Date Dollar % Total 2014
Actual Actual Budget Variance Variance Budget
Other Non-Operating Revenue
Interest Income 1,849$ 2,233$ 1,875$ 358$ 19.1% 5,000$
Self-Liquidating Income 2,012 2,148 2,148 - 0.0% 5,486
3,861 4,381 4,023 358 8.9% 10,486
Debt Service
Short Term Financing (116) (87) (87) - 0.0% (703)
Equip. Financing Prinicipal/Interest Pymts (1,674) (1,621) (1,621) - 0.0% (3,137)
Gen. Airport Revenue Bond Requirement - - - - (96,203)
(1,790) (1,708) (1,708) - 0.0% (100,043)
Equipment
Capital Expenditures (390) (358) (423) 65 -15.4% (1,020)
Equipment Purchases (1,867) (1,403) (1,403) - 0.0% (7,847)
Equipment Financing 6,198 3,960 3,960 - 0.0% 4,138
3,941 2,199 2,134 65 3.0% (4,729)
Other
2013-2014 Six Month Reserve Transfer (1,677) (3,298) (3,298) - 0.0% (3,300)
Interstate Payments (Settlement) 300 300 300 - 0.0% 720
Easement Receipt - 178 - 178 -
Grant Reimbursement - 35 - 35 -
Gain (Loss) on Equipment & Other 52 56 - 56 -
(1,325) (2,729) (2,998) 269 -9.0% (2,580)
Total Non-Operating Revenues (Expenses) 4,687$ 2,143$ 1,451$ 692$ 47.7% (96,866)$
Net Revenues Available for Designation 69,829$ 70,505$ 69,279$ 1,226$ 1.8% 42,916$
Brackets ( ) Represent Revenue Items under Budget and Expense Items over Budget
Year To Date
2014
Year To Date
2014
OPERATING REVENUE
Operating revenue for May year-to-date is $2.4 million or 1.9% over budget. The greatest variance exists in the following categories.
Airline Rates and Charges Landing Fees
Landing Fees at the end of the quarter are at budget as noted in the following table:
Landed Weight 5/31/2014
(One thousand pound units)
Actual Budget Variance
1st Qtr 5,070,108 5,015,000 55,108
April 1,734,607 1,721,250 13,357
May 1,744,255 1,763,750 (19,495)
Total 8,548,970 8,500,000 48,970
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Landed Weight
2011
2012
2013
2014
`
Terminal 1-Lindbergh - Other Rentals Terminal 1-Lindbergh – Other Rentals are lower than budget $169,586 as a result of delaying implementation of the T1 checked baggage inspection fee. (Related expenses are also lower.)
Terminal 2 – Lobby Fees Terminal 2 Lobby Fees are over budget $298,357 or 4.2% due to greater activity than the budget anticipated. Spirit is 112.3 % and Sun Country is 31.9% in year-over-year operations through April. Terminal 2 – Other/Passenger Fees Terminal 2 - Other/Passenger Fees are greater than budget due to the FIS (Federal Inspection Services) fees. FIS Passengers are 22% higher than anticipated.
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
T 2 Lobby Fees and FIS Revenue2011
2012
2013
2014
Concessions Concessions year-to-date revenue is $1.5 million or 2.6% greater than budget.
May 2014 year-to-date
Variance % Variance $
Passengers as of April
(includes non revenue -year
over year) 5.3% n/a
Food & Beverage 8.7% 475,557$
News -0.9% (11,710)$
Retail -0.8% (14,868)$
Passenger Services -10.8% (193,618)$
Parking 4.7% 1,637,161$
Ground Transportation 3.0% 68,160$
MSP Employee Parking -2.4% (25,882)$
Auto Rental -1.1% (80,661)$
Other Concessions -61.5% (387,782)$
Total Variance 2.6% 1,466,357$
Concessio
ns
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Concessions Revenue2011
2012
2013
2014
Food & Beverage Food & Beverage year-to-date revenue is $475,557 or 8.7% greater than budget due to strong public spending at T1 and T2.
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Food & Beverage Revenue2011
2012
2013
2014
Note: May 2011 includes previous month adjustments. December includes key money.
News and Retail News and Retail revenues are at a variance of -0.9% and -0.8%.
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
News & Retail Revenue2011
2012
2013
2014
Passenger Services
Passenger Services is lower than budget by $193,618 or 10.8%. This is largely due to indoor advertising. JC Decaux has reported a loss of advertising renewals nationally in airports and a lack of airport advertising buys which is affecting all of the airports in their system. Specifically at MSP, a tenant did not renew their advertising contact (projection wall on the start of the C Concourse) at a loss of approximately $40,000 per month.
Parking Parking revenue year-to-date is $1.6 million or 4.7% greater than budget. Strong public interest continues in T1 General and MSP Value parking products.
Parking Revenue 5/31/2014
Actual Budget Variance1st Qtr 22,558,727$ 21,211,399$ 1,347,328$
April 7,296,872$ 7,114,624$ 182,248$
May 6,910,506$ 6,802,921$ 107,585$
Total 36,766,105$ 35,128,944$ 1,637,161$
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Parking Revenue2011
2012
2013
2014
Note: A rate increase was implemented in January 2012.
Other Concessions
Other Concessions are lower than budget 61.5% or $387,782 due to the 494 billboard lease contract that has been delayed as a result of permitting challenges. In 2008/2009 there was a change in the definitions of freeway and expressway that (combined with the location of unincorporated lands around MSP) in MnDOT’s opinion, require that the proposed billboards along Highway 5 and Highway 494 be sited more than 500 feet from a grade separated interchange. The proposed locations do not meet this requirement. Legal staff continue to work with MnDOT attorneys to resolve the issues.
OPERATING EXPENSE
Operating expenses are over budget $1.9 million or 3.3%.
Personnel
Personnel expenses are over budget $319,335 or 1.1% as a result of Doubletime and Overtime associated with winter related weather events.
Utilities
Utilities are over budget $1.1 million or 15.8% directly related to Jet Fuel. At Centerpoint’s request, the Energy Management Center switches from Natural Gas to Jet Fuel and MAC receives a rate break (Interruptible Contract). The average rate savings from Centerpoint amounts to approximately $560,000 per year. The average Jet Fuel purchases for the last 5 years have been $50,000 per year. Therefore, the Commission saves an average of $510,000 per year by allowing Centerpoint to make the switch when demand dictates a change. Through April 2014 Jet Fuel purchases (higher due to the abnormal cold temperatures) amounted to $705,740 thereby eliminating the savings for the current year. In addition, heating for natural gas is over budget $495,121.
Maintenance
Maintenance expenses are $449,241 or 3.7% above budget related to snow removal equipment expenses. However, due to a delay in implementation, expenses for the T1 checked baggage inspection system are under budget.
NON-OPERATING REVENUE AND EXPENSE
Non-Operating Revenue and Expense is over budget (higher revenue) due to an unbudgeted payment from the City of Eden Prairie for a roadway easement at Flying Cloud. In addition, interest rates earned on investments are higher than the budget anticipated.
WCF ACCOUNTS 0-30 Days 31-60 Days 61+ Days TOTAL
Past Due Past Due Past Due
934th MSG 14,349.50 1,090.33 - 15,439.83
Evergreen Eagle - - 88,727.57 88,727.57
Servisair Fuel 246,811.68 - - 246,811.68
MSP Jet Center - - 54,809.55 54,809.55
North American Airlines - - 8,733.71 8,733.71
Sterling Works - - 5,406.87 5,406.87
TSA 64,899.04 24,802.13 48,670.29 138,371.46
TSA LEO 71,360.00 - 152,320.00 223,680.00
United Airlines 41,493.48 - - 41,493.48
Misc Amounts Due 13,201.46 11,711.70 (1,110.01) 23,803.15
Accounts Receivable Aging Report Totals as of 6/27/2014 452,115.16 37,604.16 357,557.98 847,277.30
Current 0 - 30 Days 31 - 60 Days 61 + Days TOTAL
Past Due Past Due Past Due
Payment in Process 172,649.11 172,649.11
Miscellaneous Past Due Accounts 80,280.12 23,379.79 103,659.91
Total Accounts Late Notice Sent 9,243.87 23,540.10 32,783.97
Total Accounts in Default 10,952.47 233,197.63 244,150.10
Total Accounts MAC Legal 220,573.80 220,573.80
Total Accounts on Payment Plan 3,635.74 3,644.95 7,280.69
Total Accounts with Reliever Dept 1,178.98 23,560.78 24,739.76
Total Account Credits -
RELIEVER ACCOUNTS TOTAL 172,649.11 80,280.12 48,390.85 504,517.26 805,837.34
ACCOUNTS RECEIVABLE AGING REPORT SUMMARY AS OF 6/27/2014
RELIEVER ACCOUNTS