FY2016 CCDOA Financial Report as of 6302016.pdf - page 40

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Discussion of FY 2016 Operating Expenses
Operating Expenses
For the Fiscal Years Ended June 30, 2016, 2015, and 2014
FY
FY
FY
Percentage Percentage
2016
2015
2014
Change
Change
Operating Expense Category
(000)
(000)
(000)
2016 - 2015 2015 - 2014
Salaries and benefits
119,653
$
118,498
$
117,903
$
1.0%
0.5%
Professional services
54,687
52,610
54,205
3.9%
-2.9%
Repairs and maintenance
21,176
21,421
21,773
-1.1%
-1.6%
Utilities and communications
24,338
25,666
24,404
-5.2%
5.2%
Materials and supplies
12,844
11,349
10,372
13.2%
9.4%
Administrative
4,021
2,357
2,742
70.6%
-14.0%
Insurance
2,395
2,467
2,579
-2.9%
-4.3%
239,114
$
234,368
$
233,978
$
2.0%
0.2%
For FY 2016, the Department's total operating expenses increased by $4.7 million, or 2.0 percent, from FY 2015, from
$234.4 million to $239.1 million. Most major operating expense categories experienced increases, such as salaries
and benefits, up $1.2 million; professional services, up $2.1 million; materials and supplies, up $1.5 million; and
administrative expenses, up $1.7 million. The increases were offset by decreases in repairs and maintenance, down
$0.2 million; utilities and communications expenses, down $1.3 million; and insurance expense, down $0.1 million.
Salaries and benefits is the single largest operating expense of the Department. Salaries and benefits made up
approximately 50 percent of the overall Department's operating expenses in FY 2016. For FY 2016, the Department
had 1,377 full-time employees and 34 part-time employees. For FY 2015, the Department had 1,364 full-time
employees and 39 part-time employees. This increase of 0.9 percent in the number of full-time employees resulted
from the Department’s close monitoring of staffing and decisions to reallocate resources and replace only certain
vacancies as they arise. For FY 2016, total salaries and benefits increased by $1.2 million over FY 2015. Salaries and
wages, excluding benefits, increased by $2.0 million, or 2.6 percent. Contributing to this increase was the cost of
living increase of 2.0 percent scheduled in FY 2016 in the agreement with the Service Employees International
Union. As of June 30, 2016 and 2015, the Airport had 195 and 270 vacancies, respectively, a 13.0 and 16.5 percent
vacancy factor, also respectively. Benefit costs for FY 2016 were down $0.9 million, or 2.1 percent, from FY 2015. This
decline was a result of a decrease of $1.5 million in benefit costs associated with pension expense. Refer to Note 5,
"Retirement Plans," for more detail related to employee benefit programs and their associated costs.
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