FY2016 CCDOA Financial Report as of 6302016.pdf - page 61

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
48
(l) Passenger Facility Charge ("PFC")
The FAA authorized the County to impose a PFC of $3.00 per qualifying enplaned passenger
commencing June 1, 1992. The PFC continued to be $3.00 until November 1, 2004, when the FAA
authorized the County to increase the PFC to $4.50. Effective September 1, 2006, the PFC rate
decreased from $4.50 per qualifying enplaned passenger to $3.00 pursuant to authorization from the
FAA. Effective January 1, 2007, the PFC rate increased from $3.00 per qualifying enplaned passenger to
$4.00 through the fiscal year ended June 30, 2008. Effective October 1, 2008, the PFC rate increased to
$4.50 per qualifying enplaned passenger.
Net PFC receipts are restricted and can be used only for those capital projects, including debt service,
that have been authorized by the FAA. The County has been authorized to collect PFCs in an
aggregate amount of $4.6 billion. Collections during the fiscal year ended June 30, 2016, were $89.3
million, and aggregate collections including interest from inception through June 30, 2016, were
$1,475.9 million. All the PFC collections are used to pay debt service on PFC-pledged bonds or
subordinate lien bonds issued to fund FAA-approved projects.
(m) Restricted Assets and Liabilities
Restricted assets consist of cash, investments, and other resources that are legally restricted to certain
uses pursuant to the Master Indenture of Trust dated May 1, 2003. Capital program funds are restricted
to pay the cost of certain capital projects as defined in various bond ordinances. PFC program funds
are restricted to pay the cost of FAA-approved capital projects and any debt service incurred to
finance these projects. Debt service funds are restricted to sourcing payments for principal, interest,
sinking funds, and coverage as required by specific bond covenants.
(n) Budgetary Control
As an enterprise fund of the County, the Department is subject to the budgetary requirements of the
State of Nevada ("State"), including budgetary hearings and public meetings as required by the
County’s overall budget process. Accordingly, the Board approves the Department’s annual budget
and any subsequent changes thereto. The Department’s budget is prepared using the accrual basis of
accounting, and actual expenses cannot exceed total budgeted operating expenses without action
pursuant to the State’s budgetary requirements. Appropriations for operating expenses lapse at the
end of each fiscal year.
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