Fiscal Year Adopted Budget 2016 MIAMI-DADE AVIATION DEPARTMENT Finance and Strategy Group: Financial Planning and Performance Analysis Division Miami - Florida Miami-Dade Aviation Department A Department of Miami-Dade County, Florida FY 2016 Adopted Budget Anne Syrcle Lee Chief Financial Officer Prepared by: Financial Planning & Performance Analysis Division Ivonne M. Davila Financial Performance Coordinator Amy Cruz Brian Gendron Accountant 3 Special Projects Administrator 1 Brenda Ellis Accountant 2 Miami-Dade County, Florida Elected Officials Carlos A. Gimenez Mayor Board of County Commissioners Jean Monestime, Chairman Esteban Bovo, Jr., Vice Chairman 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 Juan C. Zapata, District 11 Bruno A. Barreiro, 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 Emilio T. González Aviation Director Joseph Napoli Hiram Barroso Chief of Staff & Senior Senior Executive Policy Advisor Assistant & Deputy Chief of Staff Ke n Pyatt Anne Syrc le Lee Deputy Director Chief Financial Officer Daniel J Agostino Lauren Stover Carlos Jose Assistant Director, Assistant Director, Assistant Director, Operations Public Safety & Security Facilities Management Barbara Jimenez Gregory C. Owens Pedro Hernandez Assistant Director, Assistant Director, Assistant Director, Administration Business Retention & Development Facilities Development Tony Quintero Milton Collins Associate Director, Associate Director, Governmental Affairs Minority Affairs www.miami-airport.com 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, 2014. 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 91 (Click on text below, to view section) FINE ARTS & CULTURAL AFFAIRS 95 PUBLIC & CUSTOMER RELATIONS 99 COMMUNICATIONS 103 READERS GUIDE 1 MARKETING 107 PROFESSIONAL COMPLIANCE 111 PROTOCOL & INTERNATIONAL AFFAIRS 115 BUDGET MESSAGE 3 FINANCE & STRATEGY GROUP 119 INTRODUCTION 17 FINANCE & STRATEGY 126 OVERVIEW 17 ACCOUNTING 129 FIVE-YEAR FINANCIAL OUTLOOK 21 CAPITAL FINANCE 133 ORGANIZATIONAL GOALS & KEY STRATEGIES 28 PROGRAM CONTROLS 137 STRATEGIC ALIGNMENT 28 FINANCIAL PLANNING & PERFORMANCE ANALYSIS FINANCIAL POLICIES 30 141 BUDGET OVERVIEW 32 CASH MANAGEMENT 145 FINANCIAL STRUCTURE 35 FLOW OF FUNDS 38 DEBT POLICIES 39 OPERATIONS GROUP 149 BUDGET OVERVIEW: OPERATING REVENUES 41 OPERATIONS 153 AIRSIDE OPERATIONS 156 TERMINAL OPERATIONS 160 BUDGET COMPARISON 41 LANDSIDE OPERATIONS 164 DESCRIPTION OF REVENUES 42 GENERAL AVIATION AIRPORTS OPERATIONS 168 MAJOR SOURCES OF REVENUES 43 AVIATION NOISE ABATEMENT 172 REVENUE DETAIL 44 NARRATIVE OVERVIEW 47 PUBLIC SAFETY & SECURITY GROUP 177 BUDGET OVERVIEW: OPERATING EXPENSES 57 POLICE SERVICES 182 FIRE & RESCUE 185 BUDGET COMPARISON 57 SECURITY & SAFETY 188 BUDGET BY CATEGORY 59 NARRATIVE OVERVIEW 60 BUDGET BY GROUP 62 FACILITIES MANAGEMENT GROUP 192 EXPENSE SUMMARY BY GROUP 63 PERSONNEL BY GROUP 65 FACILITIES MANAGEMENT 197 PERSONNEL SUMMARY BY GROUP 66 MAINTENANCE 200 PERSONNEL CHANGES BY GROUP 68 ADMINISTRATION GROUP 207 EXECUTIVE GROUP 71 ADMINISTRATION 212 EXECUTIVE 75 HUMAN RESOURCES 215 LEGAL 79 CONTRACTS ADMINISTRATION 219 NORTH TERMINAL DEVELOPMENT 83 INFORMATION SYSTEMS 223 MINORITY AFFAIRS 228 POLICY ADVISEMENT GROUP 85 COMMODITIES MANAGEMENT 232 BUSINESS RETENTION & DEVELOPMENT DEBT SERVICE 279 GROUP 237 IMPROVEMENT FUND 289 BUSINESS RETENTION & DEVELOPMENT 242 REAL ESTATE MANAGEMENT & DEVELOPMENT 245 CAPITAL IMPROVEMENT PROGRAM 291 AIRPORT CONCESSION BUSINESS DEVELOPMENT 249 COMMUNICATION, HOSPITALITY & SUPPLEMENTAL DATA 297 TRANSPORTATION SERVICES 253 ORDINANCE 298 FACILITIES DEVELOPMENT GROUP 257 NON-DEPARTMENTAL 301 MANAGEMENT AGREEMENTS 302 ADMINISTRATIVE REIMBURSEMENT 303 FACILITIES DEVELOPMENT 262 PROMOTIONAL FUNDING 304 FACILITIES 265 SUMMARY OF NEW/REVISED RATES 307 AVIATION PLANNING, LAND-USE & GRANTS 269 ECONOMIC STATISTICS 309 CIVIL ENVIRONMENTAL ENGINEERING 273 OPERATIONAL STATISTICS 314 FINANCIAL STATISTICS 324 RESERVE MAINTENANCE FUND 277 GLOSSARY 327 ACRONYMS 333 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 2015 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 2015‐16 1 Miami‐Dade Aviation Department |FY 2015‐16 2 Budget Message December 11, 2015 Honorable Mayor Carlos A. Gimenez Honorable Chairman Jean Monestime 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, 2016 (the 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’s vision is to grow MIA into 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. Although, most of this will be accomplished through capital investment, the operating budget will support the planned Capital Projects and where appropriate, enable the Aviation Department to meet the related objectives. The Department maintained a low growth rate (3.5%) in this year’s operating expense budget, allowing only justifiably necessary increases in order 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, decreased slightly (by less than 1.0%) from the CEP in the FY 2015 Budget. The FY 2016 CEP is $20.13, 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 enplaned passengers at MIA. Although MIA has one of the higher CEPs among United States commercial airports, the Aviation Department has successfully kept CEP from materially increasing over the last five years by striving to keep its operating (variable) costs as low as possible given that its annual debt service amount is mostly fixed. Miami‐Dade Aviation Department |FY 2015‐16 3 BACKGROUND The Department’s mission is: To provide 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. As previously stated, the Department’s vision is to grow MIA into a global airport and it plans to do so using its core values of professionalism, integrity, customer service, innovation, respect and teamwork. Some of the initiatives that support these statements are: Expand domestic and international travel and tourism Ensure security at all MDAD airports Provide easy access to transportation information Ensure excellent customer service for passengers Enhance customer services, convenience and security at every level of contact