FY2016 CCDOA Financial Report as of 6302016.pdf - page 42

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Salaries and benefits is the single largest operating expense of the Department. Salaries and benefits made up over
50 percent of the overall Department's operating expenses in FY 2015. For FY 2015, the Department had 1,364 full-
time employees and 39 part-time employees. For FY 2014, the Department had 1,400 full-time employees and 14
part-time employees. This decrease of 2.6 percent in the number of full-time employees resulted from the
Department’s evaluation and implementation of additional cost containment measures. For FY 2015, total salaries
and benefits increased by $0.6 million over FY 2014. Salaries and wages, excluding benefits, increased by $2.6
million, or 3.5 percent. Contributing to this increase was the fact that, effective July 1, 2014, all non-management
staff earned a 2.5 percent cost of living increase. Also contributing to the increase in salaries and wages was an
increase in longevity pay for existing staff, which amounted to $0.5 million over FY 2015. For FY 2015 and FY 2014, the
Airport had 270 and 234 vacancies, respectively, a 16.5 and 14.3 percent vacancy factor, also respectively. Benefit
costs for FY 2015 were down $2.1 million, or 4.8 percent, over FY 2014. This decline was a result of two contributing
factors. First, the implementation of GASB 68 resulted in a decrease of $0.8 million in benefit costs associated with
pension expense. No information was available to restate FY 2014 pension expense for GASB 68 and, therefore,
pension expense for FY 2014 was not restated. Second, other postemployment benefits declined by $0.9 million.
Refer to Note 5, "Retirement Plans," for more detail related to employee benefit programs and their associated
costs.
Professional services costs during FY 2015 decreased by 2.9 percent, or $1.6 million, over FY 2014, with the majority of
the reduction occurring in fees for bond issuance services and legal services. Bond issuance costs incurred during
FY 2015 declined by $1.3 million, from $2.5 million in FY 2014 to $1.2 million in FY 2015, a reduction of 52.0 percent.
This reduction resulted from fewer bond refundings and letter of credit agreements executed in FY 2015. Costs for
legal services incurred during FY 2015 were $1.0 million, a decrease of $0.9 million over FY 2014. In FY 2014, these
fees included legal services in connection with the settlement of avigation easement litigation. The settlement was
accrued in FY 2013 and paid in FY 2014. The decrease in professional services costs was offset by an increase of $0.4
million, or 1.7 percent, over FY 2014 in the cost of security services.
Repairs and maintenance expenses for FY 2015 decreased 1.6 percent, or $0.4 million, over FY 2014. The majority of
the decrease was related to a general reduction in services needed.
Utility and communication expenses for FY 2015 increased over FY 2014 by $1.3 million, or 5.2 percent. The majority
of the increase related to electricity costs, which were up $0.8 million, or 4.4 percent, over FY 2014. Natural gas
expense increased by $0.3 million, or 25.7 percent, over FY 2014. These increases related to rate increases as well as
usage increases. Communication expense increased by $0.2 million, or 9.6 percent, from FY 2014 to FY 2015. Water,
sewage, and waste disposal expenses essentially remained flat, with only a 0.3 percent decrease compared to FY
2014.
Materials and supplies expense for FY 2015 was up $1.0 million, or 9.4 percent, over FY 2014. The majority of this
increase related to the installation of carpet in various locations within Terminal 1.
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