2004 Operating Budget

TABLE OF CONTENTS – 2004 OPERATING BUDGET Page I. BUDGET MESSAGE Budget Message.....................................................................................................1 GFOA Award...........................................................................................................8 Other Awards..........................................................................................................9 Il. GOALS AND OBJECTIVES 2003 Organizational Goals and Objectives Progress Report ...............................13 2004 Organizational Goals and Objectives...........................................................15 2002 Service Centers Progress Report ..............................................................109 2003 Service Centers Progress Report ..............................................................109 2004 Service Centers Objectives........................................................................109 2004 Service Centers Objectives - Long Term ...................................................109 III. BUDGET PROCESS Operating Budget Summary and Targets .............................................................17 Budgeting and Amendment Process ....................................................................20 Financial Policies ..................................................................................................24 Basis of Budgeting ................................................................................................26 IV. ORGANIZATIONAL STRUCTURE General Description ..............................................................................................27 Chart of Organization............................................................................................29 Department List.....................................................................................................30 V. OPERATING BUDGET CASH FLOW Flow of Funds .......................................................................................................33 Taxing Authority ....................................................................................................35 Total Operating Budget Summary (including Non-Operating) ..............................36 Sources and Uses.................................................................................................37 VI. OPERATING BUDGET REVENUE Operating Budget Summary .................................................................................39 Operating Revenues .............................................................................................40 Revenue Assumptions..........................................................................................42 VII. OPERATING BUDGET EXPENSE Operating Expenses .............................................................................................55 Expense Assumptions ..........................................................................................57 Line Items by Subledger .................................................................................. 69 VIII. OPERATING BUDGET CAPITAL EQUIPMENT Capital Equipment Summary ................................................................................97 IX. ORGANIZATIONAL PERSONNEL Personnel Summary ...........................................................................................103 Personnel Summary by Division .........................................................................104 Personnel Summary by Classification.................................................................106 TABLE OF CONTENTS – 2004 OPERATING BUDGET Page X. EXECUTIVE DIVISION Service Center Summary....................................................................................107 XI. LEGAL AFFAIRS DIVISION Service Center Summary................................................................................ 125 XII. HUMAN RESOURCES DIVISION Service Center Summary....................................................................................131 XIII. LABOR RELATIONS AND GOVERNMENT AFFAIRS DIVISION Service Center Summary....................................................................................153 XIV. ENVIRONMENT AND PLANNING DIVISION Service Center Summary....................................................................................161 XV. ADMINISTRATIVE SERVICES DIVISION Service Center Summary....................................................................................181 XVI. OPERATIONS DIVISION Service Center Summary....................................................................................219 XVII. CONSTRUCTION BUDGET CIP (Capital Improvement Plan) Summary and Policies.....................................307 Sources and Uses of Funds................................................................................310 Projects In Process.............................................................................................313 Capital Improvement Project Summaries ................................................................. MSP International...........................................................................................314 Maintenance and Operating Cost Summary ..................................................321 XVlII. DEBT SERVICE Debt Service Policies ..........................................................................................323 Debt Service Requirement..................................................................................324 Long Term Debt..................................................................................................325 Debt Service Budget ...........................................................................................328 Sources and Uses...............................................................................................329 XlX. STATISTICAL Historical Revenue / Expense Comparison ........................................................331 Facility Comparison.........................................................................................331 Activity/Operating Statistics.................................................................................336 Passengers ....................................................................................................336 Operations......................................................................................................337 Cargo / Mail ....................................................................................................337 National Comparison ..........................................................................................338 Rates and Concessions..................................................................................338 Industry...........................................................................................................341 Other Informational Statistics..............................................................................343 Population ..................................................................................................343 Airport Activity ............................................................................................345 XX. GLOSSARY ............................................................................................................347 BUDGET MESSAGE – 2004 OPERATING BUDGET December 15, 2003 To The Public: We are pleased to present the 2004 Metropolitan Airports Commission budget that was adopted by the Commission on December 15, 2003. Total operating revenue for 2004 is projected to be $183,198,131 and operating expense is $182,063,360. The fourth quarter of 2003 and the final preparation of the 2004 budget continued to be a very difficult time for all involved in the air transportation system. When staff began the 2004 budget process last summer, the economic forecast continued to be cautiously optimistic. There was still concern over when the economy and in particular the aviation industry would recover. The Finance Committee, staff, and the airlines worked very hard to put together a budget package for 2004. In addition, staff and the airlines agreed to continue to review the budget throughout 2004 for cost savings as well as identifying areas where a change in policy may be in order. As a result of this review process, and even though there was an increase of $1.3 million for post retirement health care, the 2004 draft budget changed from $181.1 million to $182.1 million. From another perspective prior to 9/11/01 staff was prepared to move forward with a budget for 2002 of $203 million. The aviation industry continues to struggle economically. Two major airlines (US Air & United) have cleared Chapter 11 bankruptcy while most others continue to struggle. There appears to be little recovery in sight for the industry in 2004. Because of these continued conditions, the Commission decided that a rate reduction for the airlines of approximately $3.3 million be granted in 2003 as well as two additional rate relief mechanisms in 2003 and 2004. The first of these in 2003 was a $13.0 million relief package given to the carriers in 3 credit installments in August, October and December. The second mechanism was a $7.6 million rate reduction in 2004. Even though the airlines started operating out of substantially more space (new facilities) in 2003, these reductions allowed the airline payments to be no more than they were in 2002. The table below shows the comparison of revenue and expense for the period 2001-

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