FY2016 CCDOA Financial Report as of 6302016.pdf - page 15

Airline-generated revenues for FY 2016 increased from FY 2015 by 1.6 percent. Non-aeronautical revenues for FY 2016 were
up 5.4 percent over FY 2015 levels. Total operating revenues at the Airport increased from $521.7 million in FY 2015 to
$540.2 million in FY 2016, an increase of $18.5 million. Operating expenses increased 2.0 percent over FY 2015 levels from
$234.4 million in FY 2015 to $239.1 million in FY 2016, an increase of $4.7 million. The increase in operating revenues can
primarily be attributed to providing more upscale and a better variety of services to Airport passengers, along with the
increase in passenger traffic. The increase in operating expenses was mainly attributable to increases in salaries and
benefits. The Department made all scheduled debt service payments. On July 1, 2016, the Department fully redeemed
the outstanding principal and interest of the 2006A Subordinate Lien Bonds. The Department continues to be committed
to maintaining System-wide cost containment measures.
The Department is current on all outstanding bond obligations. The bonds were issued to provide funding for capital assets
to be acquired or constructed. As of June 30, 2016, the current bond proceeds available are anticipated to be used for
airfield projects. The Department does not anticipate issuing any new debt to fund its current capital improvement plan.
All outstanding bonds are secured by pledges of Airport System revenues, except Passenger Facility Charge (“PFC”) and
Jet A bonds, which, in addition to being secured by pledges of Airport System revenues, are primarily secured by PFC and
Jet A fuel tax revenues, respectively.
The Department's management is responsible for the accuracy of the data presented in the financial statements along
with the completeness and fairness of the presentation, including all disclosures. To the best of our knowledge, and as
indicated in the opinion of our independent auditors, this report fairly presents and fully discloses, in all material respects,
the Department’s financial position, results of operations, and cash flows in accordance with generally accepted
accounting principles ("GAAP") in the United States of America.
In developing and evaluating the Department's accounting system, consideration is given to the adequacy of internal
controls. The objective of internal controls is to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in
accordance with management’s authorization and are properly recorded to permit the preparation of financial
statements in accordance with GAAP. The concept of reasonable assurance recognizes that 1) the cost of a control
should not exceed the benefits likely to be derived from it and 2) the evaluation of costs and benefits requires estimates
and judgments by management. Airport System management believes the Department’s internal control processes
adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded.
This letter of transmittal should be read in conjunction with the Management’s Discussion and Analysis contained in the
financial section.
The extraordinary success of the Department is a direct result of the leadership and support of the Board and the County
Manager. Also recognized for making a tremendous effort in promoting the success of the Airport System are the
employees of the Department and the airlines as well as the tenants of the Airport System.
We thank the Board for its continuing support of the Department, for its efforts to conduct its financial operations in a
responsible and progressive manner, and for its commitment to making the Department a global leader in its industry.
The preparation of this report is the product of the dedicated service and professionalism of the Department’s Finance
Staff. We also thank all other members of the Department's staff who contributed to the preparation of the CAFR.
Sincerely submitted,
Rosemary A. Vassiliadis
Joseph M. Piurkowski
Director of Aviation
Airport Chief Financial Officer
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