BUDGET VARIANCE REPORT APRIL 2018 - Granicus
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MEMORANDUM TO: Finance and Administration Committee FROM: Kathy Fisher, Budget Manager (612-726-8158) SUBJECT: BUDGET VARIANCE REPORT – APRIL 2018 DATE: May 25, 2018 Actual revenue and expenses have been compared to the budgeted amounts for April 2018. Below is a summary of the year-to-date activity and larger variances. Details are explained within the report. Operating Revenues are over budget $1,491,379 or 1.2%. Greater than Budget Concessions – Strong Passenger Spending Passenger Services – New Agreement Auto Rental CFCs – Higher Number of Transactions Lower than Budget Parking – Fewer Transactions Operating Expenses are over budget $2,134,513 or 3.8%. Greater than Budget Personnel – Overtime/Double-time for Snow Events and Super Bowl Maintenance – Snow Events Non-Operating Revenue and Expenses are under budget $2,135,000. Lower than Budget Other Non-Operating Revenue – Interest Income Net Revenues Available for Designation total $61,034,142. F&A 6/4/2018 ITEM II A1 Page 1 of 5
Transcript of BUDGET VARIANCE REPORT APRIL 2018 - Granicus
MEMORANDUM
TO: Finance and Administration Committee
FROM: Kathy Fisher, Budget Manager (612-726-8158)
SUBJECT: BUDGET VARIANCE REPORT – APRIL 2018
DATE: May 25, 2018
Actual revenue and expenses have been compared to the budgeted amounts for April 2018. Below is a summary of the year-to-date activity and larger variances. Details are explained within the report. Operating Revenues are over budget $1,491,379 or 1.2%.
Greater than Budget
Concessions – Strong Passenger Spending
Passenger Services – New Agreement
Auto Rental CFCs – Higher Number of Transactions
Lower than Budget
Parking – Fewer Transactions Operating Expenses are over budget $2,134,513 or 3.8%. Greater than Budget
Personnel – Overtime/Double-time for Snow Events and Super Bowl
Maintenance – Snow Events Non-Operating Revenue and Expenses are under budget $2,135,000. Lower than Budget
Other Non-Operating Revenue – Interest Income Net Revenues Available for Designation total $61,034,142.
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Metropolitan Airports Commission
April 2018 Budget Variance Analysis
Operating Revenue
($=000) 2017 Total
Year to Date Dollar % 2018
Actual Actual Budget Variance Variance Budget
OPERATING REVENUES
Airline Rates & Charges
Airline Agreement
Landing Fees 20,012$ 20,590$ 20,726$ (135)$ -0.7% 67,138$
Ramp Fees 2,469 2,447 2,495 (49) -2.0% 7,489
Airline R & R 1,502 1,556 1,557 (1) -0.1% 4,674
Terminal 1-Lindbergh - Rentals 12,405 13,309 13,186 123 0.9% 39,567
Terminal 1-Lindbergh - Other Rentals 2,108 1,968 1,839 129 7.0% 6,131
Concessions Rebate - - - - (17,367)
Total Airline Agreement 38,495 39,870 39,803 67 0.2% 107,632
Terminal 2-Humphrey Lobby Fees 5,633 5,651 5,740 (89) 0.0% 10,358
Terminal 2-Humphrey Other/Passenger Fees 1,371 1,343 1,444 (101) -7.0% 3,320
Total Airline Rates & Charges 45,499 46,864 46,987 (123) -0.3% 121,311
Concessions
Terminal/Other
Food & Beverage 6,683 7,418 6,749 669 9.9% 24,023
News 1,300 1,320 1,298 22 1.7% 4,879
Retail Stores 1,614 1,962 1,708 254 14.9% 5,407
Passenger Services 2,153 3,027 2,157 870 40.3% 6,431
Total Terminal/Other 11,751 13,728 11,912 1,816 15.2% 40,740
Parking/Ground Transportation
Parking 37,779 36,917 37,267 (350) -0.9% 101,628
Ground Transportation Fees 2,904 3,566 3,606 (40) -1.1% 11,477
Auto Rental-On Airport 5,863 5,858 5,960 (102) -1.7% 19,490
Total Parking/Ground Transportation 46,546 46,340 46,833 (493) -1.1% 132,595
Other Concessions 671 739 688 51 7.4% 2,160
Total Concessions 58,968 60,807 59,433 1,374 2.3% 175,495
Rentals/Fees
Buildings & Facilities 3,296 3,400 3,523 (122) -3.5% 11,072
Auto Rental CFCs 3,872 4,179 3,917 261 6.7% 21,850
Ground Rentals 3,601 3,655 3,612 43 1.2% 10,869
Reliever Airports 1,926 2,283 2,324 (41) -1.7% 8,035
Total Rentals/Fees 12,697 13,517 13,376 141 1.1% 51,826
Utilities and Other Revenue
Utilities 1,295 1,340 1,263 77 6.1% 4,867
GA/Airside Fees 1,095 1,367 1,304 63 4.8% 4,229
Maintenance, Cleaning, Distribution Fees 889 967 1,000 (33) -3.3% 4,122
Other Revenues 560 302 357 (54) -15.2% 1,824
Reimbursed Expense 305 768 721 47 6.5% 2,173
Total Utilities and Other Revenue 4,143 4,744 4,645 99 2.1% 17,214
Total Operating Revenue 121,307$ 125,933$ 124,442$ 1,491$ 1.2% 365,846$
Brackets ( ) Represent Revenue Items under Budget and Expense Items over Budget
2018
Year To Date
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April 2018 Budget Variance Analysis
Operating Expenses
Non-Operating Revenues & Expenses
($=000) 2017 Total
Year to Date Dollar % 2018
Actual Actual Budget Variance Variance Budget
Total Operating Revenue 121,307$ 125,933$ 124,442$ 1,491$ 1.2% 365,846$
OPERATING EXPENSES
Personnel 24,190$ 28,508$ 26,948$ (1,560)$ -5.8% 88,222$
Administrative 765 760 784 24 3.1% 2,066
Professional Services 1,325 1,389 1,453 63 4.4% 7,050
Utilities 4,830 5,283 5,462 179 3.3% 19,696
Operating Services 5,103 7,926 8,187 261 3.2% 28,955
Maintenance 12,593 12,805 11,648 (1,156) -9.9% 38,514
Other 1,439 1,331 1,385 54 3.9% 4,494
Total Operating Expenses 50,245$ 58,002$ 55,868$ (2,135)$ -3.8% 188,997$
(excludes depreciation and noise amortization)
Net Operating Revenues 71,062$ 67,931$ 68,574$ (643)$ -0.9% 176,849$
NON-OPERATING REVENUE (EXPENSES)
($=000) 2017 Total
Year to Date Dollar % 2018
Actual Actual Budget Variance Variance Budget
Other Non-Operating Revenue
Interest Income 2,015$ -$ 2,145$ (2,145)$ -100.0% 6,436$
Self-Liquidating Income 1,551 1,631 1,631 - 0.0% 4,902
3,566 1,631 3,776 (2,145) 11,338
Debt Service
Short Term Financing (79) (254) (254) - 0.0% (2,426)
Bond Prinipal/Int-Operating Fund Transfer 0 - 0.0% (103,100)
Equip Financing Principal/Int Payments (2,031) (1,771) (1,771) - 0.0% (4,382)
(2,110) (2,025) (2,025) - (109,908)
Equipment
Capital Expenditures (352) (343) (353) 10 -2.8% (1,112)
Equipment Purchases (886) (2,099) (2,099) - 0.0% (10,088)
Equipment Financing 3,779 - - - 0.0% 3,465
2,541 (2,442) (2,452) 10 (7,735)
Other
Six Month Reserve Transfer (3,522) (4,113) (4,113) - 0.0% (4,113)
Interstate Settlement/Medicare D 57 52 52 - 0.0% 130
Gain (Loss) on Equipment & Other - - - - 0.0% -
(3,465) (4,061) (4,061) - (3,983)
Total Non-Operating Revenues (Expenses) 532$ (6,897)$ (4,762)$ (2,135)$ 44.8% (110,288)$
Net Revenues Available for Designation 71,594$ 61,034$ 63,812$ (2,778)$ -4.35% 66,561$
Brackets ( ) Represent Revenue Items under Budget and Expense Items over Budget
Year To Date
2018
Year To Date
2018
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OPERATING REVENUE Operating Revenue for April year-to-date is $1,491,379 or 1.2% over budget. The greatest variances exist in the following categories: CONCESSIONS As shown in the following chart comparing year-over-year, Total Concessions in 2018 exceeds Total Concessions in previous years due to the new concession stores and additional passenger services. Total Concessions revenue for 2018 year-to-date is $60,806,953 which is $1,839,265 higher than 2017 year-to-date Concessions revenue.
$0
$3,000,000
$6,000,000
$9,000,000
$12,000,000
$15,000,000
$18,000,000
$21,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Total Concessions 2015
2016
2017
2018
Concessions year-to-date revenue is $1,373,883 or 2.3% higher than budget as shown in the below table.
Variance % Variance $
Passengers as of March
(includes non revenue -
year over year)
0.83% n/a
Food & Beverage 9.9% 669,418$
News 1.7% 21,774$
Retail Stores 14.9% 254,442$
Passenger Services 40.3% 870,100$
Parking -0.9% (350,308)$
Ground Transportation -1.1% (40,258)$
Auto Rental -1.7% (102,211)$
Other Concessions 7.4% 50,926$
Total Variance 2.3% 1,373,883$
April 2018 Year-to-Date
Concessio
ns
Food & Beverage and Retail Stores Food & Beverage is over budget $669,418 or 9.9% and Retail Stores is over budget $254,442 or 14.9% due to strong passenger spending in the new concessions, especially around Super Bowl LII.
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Passenger Services Passenger Services is over budget $870,100 or 40.3%. The Distributed Antenna System (DAS) was upgraded by a wireless service provider to improve cell phone coverage throughout the MAC campus. The agreement was signed late in 2017 and was not included in the 2018 budget. Parking Parking is under budget $350,308 or 0.9% as long-term parking transactions are less than anticipated in the budget. RENTALS AND FEES Auto Rental CFCs Auto Rental CFCs is over budget 261,196 or 6.7% as this revenue source has a higher number of transactions than the budget anticipated.
OPERATING EXPENSES Operating expenses are over budget $2,134,513 or 3.8%. The greatest variances exist in the following areas: PERSONNEL Personnel is over budget $1,559,722 or 5.8% due to overtime and double-time exceeding the budget by $2,165,969 but is offset by staff vacancies. Snow events that occurred leading up to and during the Super Bowl and snow events through April resulted in a large amount of overtime/double-time to be used. Because of a higher than normal snowfall amount and timing of the snow events, the total 2018 snow removal overtime/double-time budget has been spent. The likely result will be an increase in airline rates and charges at year-end. Also contributing to the variance in overtime is a larger police presence needed before, during and after the Super Bowl. MAINTENANCE Maintenance is over budget $1,156,201 or 9.9%. Additional snow removal materials and equipment were needed for the snow events that occurred during the first part of the year.
NON-OPERATING REVENUE AND EXPENSES OTHER NON-OPERATING REVENUE Other Non-Operating Revenue is under budget $2,135,000 or 44.8%. A rise in interest rates causes the market value of MAC’s portfolio to drop which in turn lowers the interest earning on investments. With the recent rise in interest rates, the expected interest earnings have not occurred.
COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION APPROVAL OF THE BUDGET VARIANCE REPORT AND AUTHORIZE EXPENDITURES IN THESE CATEGORIES UP TO THE BUDGETED OR FORECASTED BUDGET AMOUNTS.
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