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2019 Adopted Budget

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2019 Adopted Budget MIAMI-DADE AVIATION DEPARTMENT FISCAL YEAR ADOPTED BUDGET 2 019 Finance and Strategy Group: Financial Planning and Performance Analysis Division Miami - Florida Miami-Dade Aviation Department A Department of Miami-Dade County, Florida FY 2019 Adopted Budget Prepared by: Financial Planning & Performance Analysis Division Ivonne M. Davila Aviation Budget Director Amy Cruz & Brian Gendron Aviation Financial & Performance Administrator Brenda Ellis Accountant 2 Miami-Dade County, Florida Elected Officials Carlos A. Gimenez Mayor Board of County Commissioners Esteban L. Bovo Jr., Chairman Audrey M. Edmonson, Vice Chairwoman Barbara J. Jordan, District 1 Daniella Levine Cava, District 8 Jean Monestime, District 2 Dennis C. Moss, District 9 Audrey M. Edmonson, District 3 Sen. Javier D. Souto, District 10 Sally A. Heyman, District 4 Joe A. Martinez, District 11 Eileen Higgins, District 5 José “Pepe” Diaz, District 12 Rebeca Sosa, District 6 Esteban Bovo, Jr., District 13 Xavier L. Suarez, District 7 Harvey Ruvin Clerk of the Circuit and County Courts Abigail Price-Williams County Attorney Jennifer Moon Director Office of Management & Budget www.miami-dade.gov Miami-Dade Aviation Department Senior Management Staff The Government Finance Officers Association of the United States and Canada presented a Distinguished Budget Presentation Award to the Miami-Dade Aviation Department, Florida for its annual budget for the fiscal year beginning October 1, 2017. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. Miami-Dade Aviation Department Organizational Chart *Detailed organizational charts by division are provided throughout the budget document Table of Contents GOVERNMENTAL AFFAIRS 90 (Click on text below, to view section) FINE ARTS & CULTURAL AFFAIRS 94 PUBLIC & CUSTOMER RELATIONS 98 COMMUNICATIONS & DIGITAL MARKETING 102 READERS GUIDE 1 MARKETING 106 PROFESSIONAL COMPLIANCE 110 PROTOCOL & INTERNATIONAL AFFAIRS 114 BUDGET MESSAGE 3 FINANCE & STRATEGY GROUP 119 INTRODUCTION 15 FINANCE & STRATEGY 126 OVERVIEW 15 ACCOUNTING 130 SOUTH TERMINAL 17 CAPITAL FINANCE 134 FIVE-YEAR FINANCIAL OUTLOOK 25 PROGRAM CONTROLS 138 ORGANIZATIONAL GOALS & KEY STRATEGIES 31 FINANCIAL PLANNING & PERFORMANCE ANALYSIS STRATEGIC ALIGNMENT 32 142 FINANCIAL POLICIES 34 CASH MANAGEMENT 146 BUDGET OVERVIEW 36 FINANCIAL STRUCTURE 38 FLOW OF FUNDS 41 OPERATIONS GROUP 149 DEBT POLICIES 42 OPERATIONS 154 BUDGET OVERVIEW: OPERATING REVENUES 43 AIRSIDE OPERATIONS 158 TERMINAL OPERATIONS 162 LANDSIDE OPERATIONS 166 BUDGET COMPARISON 43 GENERAL AVIATION AIRPORTS OPERATIONS 170 DESCRIPTION OF REVENUES 44 AVIATION NOISE ABATEMENT 174 MAJOR SOURCES OF REVENUES 45 REVENUE DETAIL 46 NARRATIVE OVERVIEW 49 PUBLIC SAFETY & SECURITY GROUP 177 BUDGET OVERVIEW: OPERATING EXPENSES 59 POLICE SERVICES 182 FIRE & RESCUE 185 SECURITY & SAFETY 188 BUDGET COMPARISON 59 BUDGET BY CATEGORY 61 NARRATIVE OVERVIEW 62 FACILITIES MANAGEMENT GROUP 193 BUDGET BY GROUP 64 EXPENSE SUMMARY BY GROUP 65 FACILITIES MANAGEMENT 197 PERSONNEL BY GROUP 67 MAINTENANCE 201 PERSONNEL SUMMARY BY GROUP 68 ADMINISTRATION GROUP 207 EXECUTIVE GROUP 73 ADMINISTRATION 213 EXECUTIVE 77 HUMAN RESOURCES 217 LEGAL 81 CONTRACTS ADMINISTRATION 221 INFORMATION SYSTEMS 225 POLICY ADVISEMENT GROUP 85 MINORITY AFFAIRS 230 COMMODITIES MANAGEMENT 234 BUSINESS RETENTION & DEVELOPMENT RESERVE MAINTENANCE FUND 285 GROUP 239 DEBT SERVICE 289 BUSINESS RETENTION & DEVELOPMENT 244 REAL ESTATE MANAGEMENT & DEVELOPMENT 248 IMPROVEMENT FUND 299 COMMUNICATION, HOSPITALITY & TRANSPORTATION SERVICES 252 CAPITAL IMPROVEMENT PROGRAM 303 AIRPORT CONCESSIONS BUSINESS DEVELOPMENT GROUP 257 SUPPLEMENTAL DATA 319 AIRPORT CONCESSIONS BUSINESS DEVELOPMENT ORDINANCE 320 261 NON-DEPARTMENTAL 324 MANAGEMENT AGREEMENTS 325 ADMINISTRATIVE REIMBURSEMENT 326 FACILITIES DEVELOPMENT GROUP 265 PROMOTIONAL FUNDING 327 SUMMARY OF RATES 331 FACILITIES DEVELOPMENT 269 ECONOMIC STATISTICS 350 FACILITIES 273 OPERATIONAL STATISTICS 355 AVIATION PLANNING, LAND-USE & GRANTS 277 FINANCIAL STATISTICS 365 CIVIL ENVIRONMENTAL ENGINEERING 281 GLOSSARY 368 ACRONYMS 375 Entrance to Miami International Airport Readers Guide The development of the Miami-Dade Aviation Department Budget is the culmination of many hours of review, analysis and deliberation by Aviation Department and County staff. This document demonstrates the annual business and Proposed Budget for the Aviation Department. The information within the budget document is presented in the following order: Department Budget Message Introduction Budget Overview: Operating Revenues Budget Overview: Operating Expenses Group Overview Organizational Structure Personnel Summary Expense Summary Group Goal(s)/Performance Measures Accomplishments for FY 2018 Division Organizational Structure Mission Statement Responsibilities Personnel Summary Expense Summary Major Drivers Also, included is an overview of the Reserve Maintenance Fund, Debt Service, Improvement Fund, and Capital Improvement Program. Furthermore, there is a Supplemental Data section which contains beneficial information for the reader. Miami‐Dade Aviation Department |FY 2018‐19 1 Miami International Airport night view of downtown Miami Miami‐Dade Aviation Department |FY 2018‐19 2 Budget Message November 21, 2018 Honorable Mayor Carlos A. Gimenez Honorable Chairman Esteban L. Bovo, Jr. Honorable Members of the Board of County Commissioners Harvey Ruvin, Clerk of Courts Ladies and Gentlemen: The Miami-Dade County Aviation Department (MDAD, Aviation Department or the Department) herein presents the adopted operating and capital budgets for the fiscal year (FY) ending September 30, 2019 (the Budget or the Annual Budget). The Budget is the culmination of a process that evaluates the needs and obligations of the Department, particularly as they affect operations and Capital Projects. The Budget also takes into account the requirements of the Amended Trust Agreement governing the Outstanding Aviation Revenue Bonds and its obligations under state and federal laws. The budget process is deliberative, focused on accomplishing the strategic goals of the Department and the County for the Airport System, which consists of the principal airport, Miami International Airport (MIA or the Airport), three general aviation airports, one decommissioned general aviation airport, and one airport used primarily for flight training purposes. The Department maintained a low growth rate (3.7%) in this year’s operating expense budget, allowing only justifiably necessary increases to keep costs affordable for its main customers, the MIA air carriers. As a result, the airline cost per enplaned passenger (CEP), the principal measure of the cost of doing business at an airport, slightly increased by 1.8% from the CEP in the FY 2018 Budget. The FY 2019 CEP is $19.87, which is less than the most recent published forecast. This is the result of keeping the growth in net costs below that of the projected increase in operating expenses at MIA. Although MIA has one of the higher CEPs among United States commercial airports, the Aviation Department has successfully kept the CEP from materially increasing over the last eight years by striving to keep its operating (variable) costs as low as possible given that its annual debt service amount is mostly fixed. Although, the Aviation Department has been successful in reducing the annual debt service through bond refundings as discussed later in this report. Miami‐Dade Aviation Department |FY 2018‐19 3 Executive Direction Vision: MIA will grow from a recognized hemispheric hub to a global airport of choice that offers customers a world-class experience and an expanded route network with direct passenger and cargo access to all world regions. Mission: MDAD provides a modern, safe and efficient world-class international gateway that delivers best-in-class customer service, significant economic benefits to our community and rewarding professional development opportunities to our employees. The Department will innovate, collaborate, and inspire using our core values of: Professionalism – we are high-visibility ambassadors for our airport and for our hometown; our behavior, attitude and appearance must always reflect this special role Integrity – entrusted with running the largest economic engine in South Florida; that privilege must never be abused for personal gain, financial or otherwise Customer Service – consistently treat our airport guests with the care and respect that we would expect if we were in their shoes, and prioritize their safety; not only is this the right thing to do – it’s vital to our success as a business Innovation – our future success requires that we embrace a culture of innovation, creativity and outside-the-box thinking; “this is the way it has always been done” is not an acceptable approach or answer in our line of business Respect – treat our colleagues and stakeholders accordingly; with due respect and with the understanding that our individual words and deeds reflect on the entire organization Teamwork – work together collegially, fully focused on achieving our shared organizational goals and setting aside any personal differences that could hinder
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