FY2016 CCDOA Financial Report as of 6302016.pdf - page 41

Professional services costs during FY 2016 increased by 3.9 percent, or $2.1 million, over FY 2015, with the majority of
the increase occurring in fees for bond issuance services, security services costs, and shuttle service costs. The
increase in bond issuance costs of $0.7 million relates to the issuance of the Airport System Junior Subordinate Lien
Revenue Notes Series 2015B, which refunded the Series 2013 C-1 Junior Subordinate Lien Revenue Notes, and to the
issuance of the Passenger Facility Charge Refunding Revenue Bonds Series 2015C, which refunded the Series 2007
A-2 (Non-AMT) Passenger Facility Charge Revenue Bonds. Security services increased by $1.3 million, or 4.3 percent,
with the increase attributable to enhanced security regulations. Also contributing to the increase in professional
services was an increase of $0.4 million, or 5.2 percent, in costs for shuttle services provided between the Airport
and the rental car facility. This increase was impacted by the increase in passenger volume along with additional
route times related to road construction between the Airport and the rental car facility.
Repairs and maintenance expenses for FY 2016 decreased by $0.2 million, or 1.1 percent, from FY 2015. The majority
of the decrease was related to a general reduction in needed repairs and maintenance.
Utility and communication expenses for FY 2016 decreased over FY 2015 by $1.3 million, or 5.2 percent. The majority
of the decrease related to electricity costs, which were down by $1.7 million, or 9.2 percent, from FY 2015. Natural
gas expense decreased by $0.1 million, or 7.8 percent, from FY 2015. These decreases related to reductions in rates.
Communication expense increased by $0.2 million, or 8.0 percent, from FY 2015 to FY 2016. Water, sewage, and
waste disposal expenses increased by $0.3 million, or 7.4 percent, compared to FY 2015. Water expenses increased
due to an increase water volume resulting from more car rentals using the "Quick-Turn-Around" facilities at the
Consolidated Rental Car Facility, and disposal expenses increased as a result of an increase in rates.
Materials and supplies expense for FY 2016 was up $1.5 million, or 13.2 percent, over FY 2015. The majority of this
increase related to the installation of carpet in various locations within Terminal 1, at a cost of approximately $0.7
million, and related to purchases of charging tables and chairs in the amount of $0.2 million.
Administrative expense increased from $2.4 million in FY 2015 to $4.0 million in FY 2016 due to an Arbitration Decision
and Award of $1.6 million in lost profits to Bombardier Transportation Holdings USA, Inc. Refer to Note 11(c),
"Commitments and Contingencies; Litigation and Claims," for further details.
Insurance expense decreased by 2.9 percent, from $2.5 million in FY 2015 to $2.4 million in FY 2016, due to a general
decline in premiums.
Discussion of FY 2015 Operating Expenses
For FY 2015, the Department's total operating expenses experienced a modest increase of $0.4 million, or 0.2
percent, from FY 2014. Most major operating expense categories experienced increases, such as salaries and
benefits, up $0.6 million; utilities and communication, up $1.3 million; and materials and supplies, up $1.0 million. The
increases were offset by decreases in professional services, down $1.6 million; repairs and maintenance, down $0.4
million; and administrative expense, down $0.4 million.
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