Open­ing:

The Bud­get Work­shop Meet­ing and By-Laws Dis­cus­sion of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:00 a.m., Sep­tem­ber 4, 2019 by Chair­man Lee.

All Board Mem­bers were present except Mr. Ken Nel­son, Ms. Sandy Sims, and Mr. Jay Tusa.

FY 20 Oper­at­ing and Cap­i­tal Improve­ment Budget

The draft FY 20 Oper­at­ing and Cap­i­tal Improve­ment Bud­get was pre­vi­ous­ly pro­vid­ed to the

Board for their review in prepa­ra­tion for this discussion.

Mr. McClel­lan and Ms. Nel­son reviewed the pro­ject­ed oper­at­ing rev­enues and oper­at­ing expens­es for the upcom­ing fis­cal year and the pro­posed FY 20 Budget.

The oper­at­ing rev­enues include funds that will be received from the users of the Air­port and include air­line fees and charges, con­ces­sions, pub­lic park­ing, car rentals, gen­er­al avi­a­tion, space rentals and build­ing rentals. The oper­at­ing rev­enues in the FY 20 Bud­get reflect a 3.2%, or $509,211 increase over the pro­ject­ed FY 19 revenues.

When com­par­ing oper­at­ing rev­enues of the FY 20 Bud­get to the FY 19 Bud­get, there is an increase of $2,232,963 or 15.9%, which is pri­mar­i­ly due to an increase in to the land­ing fee, addi­tion­al rental space due to the Ter­mi­nal expan­sion, and con­tin­ued strong pas­sen­ger and air­line traf­fic, result­ing in high­er con­ces­sion and park­ing revenues.

The pro­ject­ed oper­at­ing expens­es include salaries and ben­e­fits, pro­fes­sion­al ser­vices, sup­plies and mate­ri­als, util­i­ties, insur­ance, and oth­er expens­es nec­es­sary to main­tain the Airport’s oper­a­tions. The oper­at­ing expens­es in the FY 20 Bud­get rep­re­sent an increase of $1,317,694 or 17.4%, over the pro­ject­ed FY 19 oper­at­ing expens­es, with the increase in per­son­nel costs and charges relat­ed to ter­mi­nal expan­sion being the largest fac­tors in the increase.

When com­par­ing oper­at­ing expens­es of the FY 20 Bud­get to the FY 19 Bud­get, there is an increase of $596,423 or 7.2%. The FY 20 Bud­get reflects an amount which will pro­vide for the effi­cient oper­a­tion of the Air­port, and will pro­vide the nec­es­sary resources to meet the estab­lished goals for the upcom­ing year.

21536

The main focus of the Cap­i­tal Pro­gram cen­ters on eco­nom­ic devel­op­ment projects, ter­mi­nal expan­sion, con­tin­ued devel­op­ment of the envi­ron­men­tal mit­i­ga­tion pro­gram, and a tran­sient air­craft park­ing apron and asso­ci­at­ed taxi­way. Addi­tion­al­ly, the Dis­trict has includ­ed in this FY 20 Bud­get a new 7,500 foot cross­wind run­way. Stormwa­ter repairs need­ed as a result of heavy rains in April 2014 are planned; how­ev­er, fund­ing for the repairs is under appeal with FEMA and SERT for 87.5% of the cost. The cap­i­tal require­ment from Air­port funds for the FY 20 Bud­get is $6,388,238 which includes cap­i­tal projects and equipment.

This Bud­get Work­shop pro­vid­ed for a review and dis­cus­sion of the pro­posed FY 20 Oper­at­ing and Cap­i­tal Improve­ment Bud­get and required no for­mal action by the Board.

A Board dis­cus­sion ensued regard­ing new Con­struc­tion Deliv­ery Meth­ods, and there was a con­sen­sus to pro­ceed with the CM @ Risk option.

A Board dis­cus­sion ensued regard­ing the recent Com­pen­sa­tion Ben­e­fits Study. Staff rec­om­mend­ed use of a two-year phase-in imple­men­ta­tion peri­od for Evergreen’s pro­posed pay struc­ture. For­mal approval of the final Bud­get and employ­ee com­pen­sa­tion will be con­sid­ered at the Sep­tem­ber 25, 2019 Board Meeting.

Adjourn­ment:

The Bud­get Work­shop was adjourned at approx­i­mate­ly 10:43 a.m.

Kathy Gilmore, Exec­u­tive Sec­re­tary Del Lee, Chairman