MEMORANDUM TO: FROM: Kathy Fisher, Budget Manager ( ) SUBJECT: Budget Variance Report 1 st Quarter DATE: April 20, 2017

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1 MEMORANDUM F&A 5/1/ Page 1 of 6 TO: Finance and Administration Committee FROM: Kathy Fisher, Budget Manager ( ) SUBJECT: Budget Variance Report 1 st Quarter DATE: April 20, The 1 st Quarter Variance Report is presented for your review. Below is a summary of the year-todate activity. Variance details are explained further in the report. Operating Revenues are over budget $48,671 or 0.1%. Operating Expenses are under budget $1,265,490 or 3.3%. Lower than Budget Personnel Greater Vacancies Maintenance Mild winter Non-Operating Revenues and Expenses are greater than budget $60,000 or 2.0%. Net Revenues Available for Designation total $48,362,143. Net Revenues Available for Designation Year-to-Date 2016 $=

2 F&A 5/1/ Page 2 of 6 Metropolitan Airports Commission March Budget Variance Analysis Operating Revenue ($=000) 2016 Year to Date Year To Date Dollar % Total Actual Actual Budget Variance Variance Budget OPERATING REVENUES Airline Rates & Charges Airline Agreement Landing Fees $ 14,570 $ 14,828 $ 14,606 $ % $ 63,808 Ramp Fees 1,956 1,852 1,889 (37) -2.0% 7,557 Airline R & R 1,135 1,126 1,166 (40) -3.4% 4,666 Terminal 1-Lindbergh - Rentals 9,696 9,303 9,487 (184) -1.9% 38,521 Terminal 1-Lindbergh - Other Rentals 1,398 1,357 1, % 6,301 Concessions Rebate (16,970) Total Airline Agreement 28,755 28,466 28,468 (2) 0.0% 103,884 Terminal 2-Humphrey Lobby Fees 3,283 3,669 3, % 9,742 Terminal 2-Humphrey Other/Passenger Fees (21) -2.3% 2,837 Total Airline Rates & Charges 32,871 32,998 32, % 116,463 Concessions Terminal/Other Food & Beverage 4,054 4,755 4, % 22,857 News % 4,200 Retail 1,161 1,166 1,222 (56) -4.6% 6,150 Passenger Services 652 1,435 1, % 5,939 Total Terminal/Other 6,550 8,220 8, % 39,146 Parking/Ground Transportation Parking 25,439 27,400 27,703 (303) -1.1% 100,702 Ground Transportation Fees 1,573 2,020 1, % 8,601 MSP Employee Parking 903 1,042 1, % 3,646 Auto Rental-On Airport 4,398 4,397 4,398 (1) 0.0% 19,200 Total Parking/Ground Transportation 32,313 34,859 35,070 (211) -0.6% 132,148 Other Concessions (5) -1.1% 2,100 Total Concessions 39,309 43,555 43,660 (105) -0.2% 173,394 Rentals/Fees Buildings & Facilities 2,287 2,457 2, % 9,376 Building Auto - CFC's 2,086 2,729 2, % 21,850 Ground Rentals 2,236 2,697 2, % 10,092 Reliever Airports 1,451 1,453 1,468 (15) -1.0% 7,303 Total Rentals/Fees 8,059 9,336 9, % 48,622 Utilities and Other Revenue Utilities % 5,049 GA/Airside Fees (9) -1.2% 3,937 Consortium Fees (22) -3.9% 3,812 Other Revenues % 1,700 Reimbursed Expense (2) -0.7% 2,130 Total Utilities and Other Revenue 2,523 2,670 2,679 (9) -0.3% 16,628 Total Operating Revenue $ 82,762 $ 88,560 $ 88,511 $ % $ 355,107 Brackets ( ) Represent Revenue Items under Budget and Expense Items over Budget

3 March Budget Variance Analysis Operating Expenses Non-Operating Revenues & Expenses ($=000) 2016 F&A 5/1/ Page 3 of 6 Year to Date Year To Date Dollar % Total Actual Actual Budget Variance Variance Budget Total Operating Revenue $ 82,762 $ 88,560 $ 88,419 $ % $ 355,107 OPERATING EXPENSE Personnel $ 19,060 $ 18,286 $ 18,829 $ % $ 82,909 Administrative (5) -0.8% 1,964 Professional Services % 6,681 Utilities 3,055 3,377 3, % 19,852 Operating Services 3,502 3,204 3, % 26,417 Maintenance 9,253 9,777 10, % 38,777 Other 1,275 1,338 1, % 4,172 Total Operating Expenses $ 37,303 $ 37,277 $ 38,542 $ 1, % $ 180,772 (excludes depreciation and noise amortization) Net Operating Revenues $ 45,459 $ 51,283 $ 49,877 $ 1, % $ 174,335 NON-OPERATING REVENUE (EXPENSES) ($=000) 2016 Year to Date Year To Date Dollar % Total Actual Actual Budget Variance Variance Budget Other Non-Operating Revenue Interest Income $ 1,415 $ 1,523 $ 1,463 $ % $ 6,250 Self-Liquidating Income 1,175 1,163 1, % 4,654 2,590 2,686 2, % 10,904 Debt Service Short Term Financing (83) (67) (67) - 0.0% (1,967) Equipment Financing Prinicipal/Interest Pymts (1,538) (1,421) (1,421) - 0.0% (5,040) Gen. Airport Revenue Bond Requirement % (95,029) (1,621) (1,488) (1,488) - 0.0% (102,036) Equipment Capital Expenditures (229) (242) (242) - 0.0% (999) Equipment Purchases (169) (402) (402) - 0.0% (9,944) Baggage Handling System (2,000) % - Passenger Facility Charge Revenue 2, % - Equipment Financing 3, % 3,779 2,796 (644) (644) - (7,164) Other Six Month Reserve Transfer (5,076) (3,522) (3,522) - 0.0% (3,522) Interstate Payments/Medicare D % 105 Easement Receipt % - Grant Reimbursement % - Gain (Loss) on Equipment & Other % - (4,875) (3,475) (3,475) - 0.0% (3,417) Total Non-Operating Revenues (Expenses) $ (1,110) $ (2,921) $ (2,981) $ % $ (101,713) Net Revenues Available for Designation $ 44,349 $ 48,362 $ 46,896 $ 1,466 $ 72,622 Brackets ( ) Represent Revenue Items under Budget and Expense Items over Budget

4 OPERATING REVENUE F&A 5/1/ Page 4 of 6 Operating revenue for March year-to-date is over budget $48,671 or 0.1%. Although no major budget variances exist, Concessions details are shown below. Concessions Concessions year-to-date revenue is $104,873 or 0.2% lower than budget. The below chart shows the budget variance details. Retail is under budget $56,057 or 4.6% which is due to delayed openings of concessions during construction. March Year-to-Date Variance % Variance $ Passengers as of February (includes non revenue -year over year) -0.68% n/a Concessions Food & Beverage 2.4% $ 111,969 News 0.7% $ 6,370 Retail -4.6% $ (56,057) Passenger Services 3.5% $ 48,954 Parking -1.1% $ (303,010) Ground Transportation 2.9% $ 56,067 MSP Employee Parking 3.7% $ 36,857 Auto Rental 0.0% $ (834) Other Concessions -1.1% $ (5,189) Total Variance -0.2% $ (104,873) In the following chart, Concessions Revenue is higher than 2014 through Total Concessions Revenue for year-to-date is $4,246,238 higher than 2016 Concessions Revenue. $18,000,000 $15,000,000 Total Concessions $12,000,000 $9,000,000 $6,000,000 $3,000,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

5 F&A 5/1/ Page 5 of 6 Parking is under budget $303,010 or 1.1% as parking transactions are lower than the budget anticipated. Shown in the below chart, Parking Revenue is $1,961,181 greater than 2016 yearto-date. $12,000,000 $10,000,000 Parking Revenue $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Note: A rate increase was implemented in January. Parking Revenue Actual Budget Variance January $ 7,409,589 $ 7,204,031 $ 205,558 February $ 9,444,144 $ 9,564,256 $ (120,112) March $ 10,546,727 $ 10,935,184 $ (388,457) Total $ 27,400,460 $ 27,703,471 $ (303,011) OPERATING EXPENSE Operating expenses are under budget $1,265,490 or 3.3%. The greatest variances exist in the following areas: PERSONNEL Personnel expenses are under budget $543,448 or 2.9% due to greater vacancies than anticipated in the budget and the lighter than average snowfall in the first quarter which resulted in less overtime and double-time expense as well as less temporary staffing. MAINTENANCE Maintenance is under budget $377,577 or 3.7% as a result of less snow removal equipment used during the mild winter. In addition, less expenses for mechanical areas within buildings and building materials were required.

6 NON-OPERATING REVENUES AND EXPENSES F&A 5/1/ Page 6 of 6 Non-Operating Revenues and Expenses are $60,000 greater than budget as interest income is higher than expected. 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.