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9/18/2013 - Fiscal Responsibility is Emphasis for Orlando International and Orlando Executive Airports 2014 Operating Budgets

 

ORLANDO, FL. - At its September board meeting, the Greater Orlando Aviation Authority (GOAA) Board approved a $435,216,000 operating budget for Orlando International Airport (MCO). The total budget for fiscal year 2014 is $10.6 million less than 2013’s operating budget mainly due to a decrease in debt service requirements. The budget for OEA was approved at $2,804,000, approximately $177,000 less than the previous budget year.

“The new budget reflects strong fiscal stewardship as we plan for growth to meet the needs of our growing community,” says Frank Kruppenbacher, Chairman of the Greater Orlando Aviation Authority. “With Orlando’s recognition as the most visited destination in the country and the recent multi-billion dollar investments by the major attractions, we must continue to do our part and prepare for the future.”

Some of the key principles on which the budget has been developed include:

  • Basic services funded at adequate levels
  • Revenues estimated at reasonable amounts
  • Prioritization of capital and maintenance projects
  • Fair and reasonable rates and charges

“This year’s budget continues to reflect the Authority’s strategy of generating a ratio of approximately 69 percent of its revenue from non-airline sources and the remainder coming from airline rates and charges including landing fees,” says Phil Brown, Executive Director of the Greater Orlando Aviation Authority. “This formula allows us to maintain our strong bond ratings, enhance customer service and plan responsibly for the new fiscal year.”

Revenues are projected to increase in key income generating areas by $24.6 million or 7 percent over the 2013 budget.

  • Airline charges up $12.8 million due to new baggage system fees
  • Advertising, Food and Beverage, general merchandise and services are projected to increase $4.7 million as a result of budgeting commissions instead of minimum annual guarantees
  • Rental car revenues, which are some of the highest contributors to the annual budget, are expected to be $6.9 million higher due to budgeting percentage on rents
  • Hyatt hotel revenues are expected to increase $1 million due to an increase in the average room rate

Notably, in fiscal year 2013, the Authority also initiated the design for several large Capital Improvement Plan programs including:

  • The South Automated People Mover Complex $470 million
  • Airsides 1 & 3 Automated People Mover Rehabilitation and Replacement $90 million
  • Airside 4 Improvements for international arrivals facilities $114 million
  • Ticket Lobby Renovations $90 million

These programs are projected to start construction in fiscal year 2014 and will conclude by FY 2017. Capital projects are funded from the surplus cash flows generated from revenues, grants, bonds, passenger facility charges (PFC’s) or customer facility charges (CFC’s). Local tax dollars are not used to operate MCO or OEA. Under this budget airlines are to pay only for the cost allocable to the portion of the airport system they use (airfield, apron, loading bridges and terminal building space).

The new budget takes effect on October 1, 2013 and ends September 30, 2014.

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For more information, contact Carolyn Fennell or Rod Johnson in the Office of Public Affairs at the Greater Orlando Aviation Authority at 407-825-2055.

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