AVIATION DEPARTMENT NOTICE. Unaudited

Transcription

1 AVIATION DEPARTMENT NOTICE The Airport s financial statements conform to the respective audited financial statements contained in Broward County s basic financial statements. However, the financial statements, schedules and various analyses represented in this Annual Financial Report are: Unaudited

2 AVIATION DEPARTMENT

3 BROWARD COUNTY AVIATION DEPARTMENT A Major Fund of Broward County, Florida FORT LAUDERDALE / HOLLYWOOD INTERNATIONAL AIRPORT NORTH PERRY AIRPORT 2007 ANNUAL FINANCIAL REPORT Fiscal Year Ended September 30, 2007 (Unaudited) Prepared By the Finance Division Mark Spennacchio, Director of Finance Natalie Otto, CPA, Assistant Director of Finance Jackie Jackson, Accounting Manager Finance Division Staff Aida Smith, Collection Specialist Jane Bronshteyn, Accounts Payable Specialist Jeanne Cavelli, Division Administrative Assistant Joann Daniels, Accounts Payable Specialist Karla Drummond, Accounts Payable Specialist Anthony Davidson, Capital Projects Finance Manager Barbara Wright, Grants Administrator Thomas Karakunnel, Property Accountant Angela Lambert, Procurement Coordinator Ishwar Mahadeo, Capital Payable Specialist Sandra Alston, Senior Revenue/Cost Analyst Monique Burn, Billing Specialist Ron Rubin, General Ledger Accountant Harriet Samar, Revenue Manager Mercedes Pichardo, Administrative Specialist Shirley Spanie, Disbursement Accountant Pui King Liu, Capital Projects Accountant Melva Cushman, Accounts Receivable Supervisor Manny Lax, Compliance Manager

4 BROWARD COUNTY AVIATION DEPARTMENT ANNUAL FINANCIAL REPORT For the Year Ended September 30, 2007 (Unaudited) TABLE OF CONTENTS I - FINANCIAL SECTION Overview and Analysis... I 1 Financial Statements: Comparative Statement of Net Assets... I 10 Comparative Statement of Revenues, Expenses and Changes in Fund Net Assets... I 11 Comparative Statement of Cash Flows... I 12 Notes to Financial Statements... I 13 Summary of Significant Accounting Policies... I 14 Cash and Investments... I 17 Accounts Receivable... I 18 Restricted Assets... I 18 Capital Assets... I 19 Lease and Concession Agreements... I 20 Long-Term Liabilities... I 21 Capital Contributions... I 23 Airline-Airport Lease and Use Agreement... I 23 Commitments and Contingent Liabilities... I 23 Subsequent Events... I 23 II- SUPPLEMENTARY INFORMATION Supplementary Information Locator Guide... II 1 Combining Statement of Net Assets... II 2 Combining Statement of Revenues, Expenses and Changes in Net Assets... II 4 Combining Statement of Cash Flows... II 6 Debt Service Requirements to Maturity... II 8 Debt Service to Maturity by Series... II 9 Deposits to and Withdrawals from Special Funds and Accounts Created Airport Bond Resolutions and the Airline-Airport Lease & Use Agreement... II 15 Airport System Revenue Bonds Debt Service Coverage... II 16 Passenger Facility Charge Convertible Lien Bonds Sufficiency Test... II 17

5 III - STATISTICAL SECTION Operating Statistics: Annual Enplaned Passengers... III 1 Landed Weights... III 2 Aircraft Operations... III 3 Air Cargo Activity... III 4 Landing Fees... III 5 Average Terminal Rent... III 6 Airline Cost per Enplaned Passenger... III 7 Revenue Statistics: Total Concession Revenue per Enplaned Passenger... III 8 Food & Beverage Revenue per Enplaned Passenger... III 9 News & Gifts Revenue per Enplaned Passenger... III 10 Rental Car Revenue per Enplaned Passenger... III 11 Parking Revenue per Enplaned Passenger... III 12 Building & Ground Rental Revenue per Enplaned Passenger... III 13 Airfield Revenue per Enplaned Passenger... III 14 Terminal Rent Revenue per Enplaned Passenger... III 15 Other Revenue per Enplaned Passenger... III 16 Expense Statistics: Personal Services Expense per Enplaned Passenger... III 17 Contractual Services Expense per Enplaned Passenger... III 18 General Operating Expense per Enplaned Passenger... III 19 Financial Statistics: Passenger Facility Charges... III 20 Cash/Investments and Yields... III 21 Current Liquidity Ratio... III 22 Debt to Capital Asset Ratio... III 23 Debt Service per Enplaned Passenger... III 24 Airport Information: Airlines Servicing the Airport... III 25 Primary Origination & Destination for Airport Domestic Passenger Markets... III 26 Scheduled Airlines... III 27 Commuter Airlines, Charters, Cargo Carriers... III 28 Total Passengers... III 29 Airline Market Share... III 30 Comparative Airline Cost Per Enplanement by Major FLL Airlines... III 31 Bond Ratings... III 32 Airport Information... III 33

6 AVIATION DEPARTMENT

7 FINANCIAL OVERVIEW & ANALYSIS This narrative summarizes the overview and analysis of the financial activities of Fort Lauderdale-International Airport (FLL) and North Perry Airport (HWO) for the fiscal year ended September 30, The financial activity of HWO, a small general aviation airport is immaterial, but together the two airports make up the financial activity regarding the Airport System for the five (5) fiscal years (FY) ending September 30, 2003 through September 30, All amounts, unless otherwise indicated, are expressed in thousands of dollars. Financial Highlights Airport management continues to emphasize cost containment practices and the pursuit of revenue enhancement opportunities. With increased passenger enplanements at FLL, operating revenues increased 61% during the five-year period, primarily from non-aviation revenues received from parking and concessions. Airline cost per enplaned passenger (a common industry measure) is the net result of balancing these practices. Airline costs are those airport operating revenues received from the airlines. Terminal rent and landing fees are the major costs impacting the airline cost per enplanement. The following table illustrates the results of this measure and the low cost per enplaned passenger at FLL. Terminal rental rates and landing fees are calculated in accordance with the Airline-Airport Lease and Use Agreements. Terminal rental rates and landing fees have remained relatively stable during the five-year period. The airline cost per enplanement (revenues received from passenger and cargo airlines) of $4.17 in FY 2007 reflected a reduction when compared to FY 2003, despite the 70 % cumulative increase in operating expenses over the same period. AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 1

8 FINANCIAL Summary of Financial Position The following table summarizes BCAD's net assets as of September 30 for each of the last five years. Net assets increased $182.9 million (27%) from $686.5 million in FY 2003 to $869.4 million in FY The increase is primarily the result of the additional investment in capital and restricted assets, less restricted and noncurrent liabilities. AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 2

9 FINANCIAL Summary of Revenues and Expenses Operating revenues increased 61% and non-operating revenues increased 309%, respectively, while operating expenses increased 70% from FY 2003 to FY This resulted in total net income increasing $21.2 million or (106%) from $20.1million in FY 2003 to $41.3 million in FY 2007 as summarized below. An analysis of operating revenues, operating expenses and non-operating revenues follows. Analysis of Operating Revenues Airport System operating revenues increased $64.6 million or 61% during the five-year period from $106.7 million in FY 2003 to $171.3 million in FY The major components of operating revenues for each fiscal year are summarized via the following chart and table: Operating revenue increases were mainly due to a $21.4 million or 35% increase in concession and parking revenues combined, during the five-year period. In FY 2003, concession and parking revenues totaled $62.3 million and were 59% of the $106.7 million total operating revenues. These two nonaviation revenue components increased to $83.7 million and represented 49% of the $171.3 million total operating revenues in FY The 35% growth rate outpaced the 28% growth in enplaned passengers during the same five year period. This increase in non-aviation revenues has been a major factor in the ability to maintain low terminal rents and landing fees that result in low airline costs per enplanement. AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 3

10 FINANCIAL Concession revenues increased $9.1 million (29%) from $32.2million in FY 2003 to $41.3 million in FY 2007 due to increases in airport traffic and guaranteed minimum payments. These revenues accounted for 24% of total revenues in fiscal year Within the category of concessions, rental car concessions and food & beverage concessions amounted to $24.7 million (15%) and $7.6 million (5%) of operating revenues, respectively. Parking revenues increased $12.4 million (42%) to $42.5 million during the same period and represented 25% of operating revenues for FY This growth was primarily due to an increase in total airline passengers, the addition of valet parking service and an increase in short term parking rates. Terminal, Building and Ground Rentals increased $40.9 million (135.0%) from $30.3 million in FY 2003 to $71.2 million in FY These revenues are derived from the recovery of operating expenses through the annual adjustment of terminal rental rates and the collection of the customer facility charges. These revenues accounted for 41.6% of operating revenues in FY Terminal rents include revenues from signatory airlines, non-signatory airlines, and non-airline terminal tenants, plus airline user fees for ticket counters, gates, passenger boarding bridges and baggage conveyors. Building & ground rentals from airline and non-airline sources primarily represent land and building leases, apron fees and tenant service rents. Customer Facility Charges are fees charged by the rental car companies. Landing fees plus miscellaneous fees increased (16.6%) during the five-year period. Together, they represented $16.4 million or 9.6% of the $171.3 million total operating revenue in FY Landing fees are calculated according to the Airline Lease and Use Agreements. Miscellaneous fees primarily include security fees. Analysis of Operating Expenses While total operating expenses (including depreciation) have increased 70.0% during the five-year period, total operating expenses per enplaned passenger have increased 33% from $10.76 in FY 2003 to $14.37 in FY 2007 as shown below. Operating expenses increased $66.2 million (71%) from $93.9 million in FY 2003 to $160.1 million in FY This increase is attributable to personal and contractual services to meet the demands of airline passenger growth at FLL and security requirements. AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 4

11 FINANCIAL Personal Services 22% Depreciation 21% Other 16% Contractual Services 40% Personal services (salaries & wages and all employee fringe benefits) increased $5.8 million or 33% from $20.2 million in FY 2003 to $26.9 million in FY During this period, total authorized staff positions grew from 408 in FY 2003 to 424 in FY 2007, a 4% increase. Personal services accounted for 22% of total operating expenses in FY 2007 compared to 21% in FY Contractual services of $73.9 million increased $36.8 million or 99% from FY 2003 to FY This growth is primarily attributable to increased costs in shuttle bus service, parking management, security, and janitorial services. These increased costs are directly related to the large increase in airport traffic that requires improving passenger services, such as shuttle frequency and parking management, with the opening of additional parking facilities in FY Other expenses totaling $25 million accounted for 15.7% of total operating expenses in FY Collectively, these expenses increased by $9 million (56%) from $16 million in FY These include such areas as legal, purchasing, information technology systems, human resources, central finance and accounting services and utilities. The increased costs are associated with the growth the airport has seen over the past five years. Depreciation expense of $34.2 million represents 21% of operating expenses in FY 2007 compared to $20.6 million (22%) in FY AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 5

12 FINANCIAL Analysis of Non-Operating Revenues and Expenses The components of the non-operating revenues and expenses category are shown as follows. Passenger Facility Charges increased 92% from $23.7million in FY 2003 to $45.5 million in FY 2007, as a result of an increase in collections and a rate increase from $3.00 to $4.50 per enplaned passenger. These collections are done by the Airlines and remitted to the Airport net of a $0.11 collection charge. See "PASSENGER FACILITY CHARGES" in section III of this report. Interest income over the past five years has increased 323% from $6 million in FY 2003 to $25.5 million in FY This increase is primarily attributable to interest earned on invested bond proceeds. Interest expense increased 89% from $22.1 million in FY 2003 to $41.6 million in FY This increase in interest expense is due to the issuance of additional bonds. Summary of Cash Flow Activities The following shows a summary of the major sources and uses of cash and cash equivalents for the past five years. Cash equivalents are considered cash-on-hand, bank deposits and highly liquid investments with an original maturity of three months or less. Cash and cash equivalents increased $175 million or 103 % during the five year period from $169.9 million in FY 2003 to $344.9 million in FY AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 6

13 FINANCIAL Capital Acquisitions and Construction Activities Property and Equipment (net of depreciation) increased $247.4 million (24%) from $1,036.9 million in FY 2003 to $1,284.3 million in FY Major projects nearing completion or under construction at September 30, 2007 had an aggregate cost of $168.9 million. Property and equipment as of September 30, 2007 consisted of the following: Outstanding Bonds The following table summarizes the Airport System Revenue (ASR) Bond and Passenger Facility Charge (PFC) Convertible Lien Bond activity through September 30, Series F, G, and H provided approximately $200 million funding for the 1998 Project. Series I provided funding for Terminal 1 and Series J provided funding for the Consolidated Rental Car Facility. Series L provided funding for Exit Road Funding Improvements and Grade Separated Pedestrian Bridges. Series M provided funding for Security Enhancements, Renewal and Replacement Projects, partial funding for Terminal 4 Renovation, Pay-on-Foot Upgraded Parking Revenue System, Airport Signage, Runway Implementation Plan Initiatives, additional Public Parking and Sanitary Sewer project. Other changes include the refunding of Series B with Series E in 1998, Series C with Series K and the scheduled retirements as noted below. AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 7

14 FINANCIAL Airport System Revenue Bonds. The bond resolution contains a provision, among others, to set its revenue rates and charges at a level where net revenues plus excess Airline Fees & Charges from the prior year exceed required debt service payments by 125%. The following table illustrates the actual ASR debt service coverage percentage. PFC Convertible Lien Bonds. The following table illustrates the actual PFC revenues available for PFC debt service from FY 2003 to FY 2007 and the annual debt service requirement from FY 2003 to FY 2007 following the issuance of the PFC Convertible Lien Bonds during While there is no debt service coverage requirement, it is calculated at 204% in FY 2003 and 214% in FY Credit Ratings and Bond Insurance AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 8

15 FINANCIAL During October 2006, BCAD updated its credit ratings with the three major rating agencies and received the following ratings: Standard & Poor s rating services assigned an A+ to the County s Airport System revenue (ASR) Bonds and to the County s Passenger Facility Charge (PFC) Bonds an A rating with a positive outlook. Fitch Ratings also assigned the same ratings to the bonds with a stable outlook Moody s Investor s Service assigned an Aa3 rating with a stable outlook to the ASR Bonds and an A1 rating on the PFC Bonds. Passenger Facility Charge (PFC) Effective January 1, 1995, the FAA authorized the Aviation Department to impose and use collected PFCs of $3.00 per departing passenger at Fort Lauderdale - Hollywood International Airport (the Airport). In July 2005, the Airport received approval by the FAA to implement a $4.50 PFC effective October 1, Through initial and subsequent FAA approvals, the Aviation Department is authorized to collect PFCs up to $571,292,000 of which $333,389,000 has been collected as of September 30, This includes interest earned on the collected dollars. Request for Information Our Annual Financial Report is designed to provide detailed information on BCAD s operations. Questions concerning any of the information provided in this report or any request for additional information should be addressed to Mark Spennacchio, Director of Finance, Broward County Aviation Department, 100 Aviation Boulevard, Fort Lauderdale, Florida or by to mspennacchio@broward.org. AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 9

16 FINANCIAL BROWARD COUNTY AVIATION DEPARTMENT COMPARATIVE STATEMENT OF NET ASSETS For Twelve Months Ended September 30, 2007 and 2006 (in thousands) (Unaudited) ASSETS Current Assets: Cash and Cash Equivalents $ 30,677 $ 42,232 Receivables (Net) 6,446 6,443 Inventory Other Current Assets 3,715 2,330 Total Current Assets 41,157 51,338 Noncurrent Assets: Restricted Assets: Cash and Cash Equivalents 86,699 38,487 Investments 382, ,400 Grant Receivables 10,753 15,522 Total Restricted Assets 479, ,409 Deferred Bond Issuance Cost 9,147 9,964 Capital Assets: Land and Improvements 282, ,797 Buildings and Facilities 1,093,465 1,087,996 Equipment 14,717 14,227 Construction in Progress 168,954 92,887 Total Capital Assets 1,559,933 1,477,907 Less Accumulated Depreciation (275,646) (242,065) Fixed Assets (Net) 1,284,287 1,235,842 Total Noncurrent Assets 1,772,934 1,747,215 Total Assets $ 1,814,091 $ 1,798,553 LIABILITIES AND NET ASSETS Current Liabilities: Vouchers Payable and Accrued Liabilities $ 25,881 $ 25,155 Due to Other County Funds - - Other Current Liabilities 3,172 1,233 Total Current Liabilities 29,053 26,388 Current Liabilities Payable from Restricted Assets: Vouchers Payable and Accrued Liabilities 15,126 14,583 Accrued Interest Payable 19,618 20,380 Revenue Bonds Payable 35,875 34,245 Deferred Revenue-Airline Fees and Charges 20,320 23,438 Total Current Liabilities Payable from Restricted Assets 90,939 92,646 Long Term Liabilities: Revenue Bonds Payable 797, ,725 Notes Payable 17,166 21,966 Other Long-Term Liabilities and Unamortized Discount 9,690 9,660 Total Long Term Liabilities 824, ,351 Total Liabilities 944, ,385 NET ASSETS Invested in Capital Assets, Net of Related Debt 634, ,174 Restricted: Rate Stabilization 1,000 14,000 Debt Service 55,024 51,773 Passenger Facility Charge 100,704 96,318 Capital Projects 57,247 67,372 Total Restricted 213, ,463 Unrestricted 20, ,531 Total Net Assets 869, ,168 Total Liabilities and Net Assets $ 1,814,091 $ 1,798,553 AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 10

17 FINANCIAL AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 11

18 FINANCIAL BROWARD COUNTY AVIATION DEPARTMENT COMPARATIVE STATEMENT OF CASH FLOWS For Twelve Months Ended September 30, 2007 and 2006 (in thousands) (Unaudited) Cash Flows from Operating Activities: Cash Received from Customers $ 167,999 $ 157,023 Cash Payments to Suppliers for Goods and Services (97,881) (88,632) Cash Payments to Employees for Services (26,255) (23,575) Net Cash Provided by Operating Activities 43,863 44,816 Cash Flows from Noncapital Financing Activities: Grants 1,618 1,280 Net Cash Provided by Noncapital Financing Activities 1,618 1,280 Cash Flows from Capital and Related Financing Activities: Proceeds from Bond Sales Loan Proceeds Acquisition and Construction of Property, Plant and Equipment (87,412) (48,262) Proceeds from Sale of Assets Debt Principal Payment (34,245) (25,365) Interest and Fiscal Charges (42,389) (43,388) Capital Contribution 18,710 4,591 Receipt of Passenger Facility Charges 45,526 42,175 Net Cash Used for Capital and Related Financing Activities (99,679) (70,249) Cash Flows from Investing Activities: Purchase of Investment Securities (550,150) (1,089,443) Proceeds from Sale and Maturities of Investment Securities 615, ,217 Interest and Dividends on Investments 25,503 21,726 Net Cash Provided by (Used for) Investing Activities 90,855 (268,500) Net Increase (Decrease) in Cash and Cash Equivalents 36,657 (292,653) Cash and Cash Equivalents, Beginning of Period 80, ,372 Cash and Cash Equivalents, End of Period $ 117,376 $ 80,719 Cash and Cash Equivalents in Current Assets 30,677 42,232 Cash and Cash Equivalents in Restricted Assets 86,699 38,487 Total Cash and Cash Equivalents (Above) $ 117,376 $ 80,719 Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income $ 11,206 $ 17,191 Adjustments to Reconcile Operating Income to Cash Flows from Operating Activities: Depreciation Expense 34,228 33,132 Miscellaneous Non-Operating Expense (130) 839 Changes in Assets and Liabilities: (Increase) Decrease in Accounts Receivable (3) (273) (Increase) Decrease in Due from Other County Funds 1 (Increase) Decrease in Other Current Assets (1,371) (742) Increase (Decrease) in Vouchers Payable and Accrued Liabilities (635) (757) Increase (Decrease) in Due to Other Goverments 26 (3,481) Increase (Decrease) in Other Current Liabilities 541 (1,093) Net Adjustments 32,657 27,625 Net Cash Provided by (Used for) Operating Activities $ 43,863 $ 44,816 AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 12

19 FINANCIAL Notes to the Financial Statements September 30, 2007 (Unaudited) Note 1: Summary of Significant Accounting Policies...I - 14 Note 2: Cash and Investments...I - 17 Note 3: Accounts Receivable...I - 18 Note 4: Restricted Assets...I - 18 Note 5: Capital Assets...I - 19 Note 6: Lease and Concession Agreements...I - 20 Note 7: Long-Term Liabilities...I - 21 Note 8: Capital Contributions...I - 23 Note 9: Airline-Airport Lease and Use Agreement...I - 23 Note 10: Commitments and Contingent Liabilities...I - 23 Note 11: Subsequent Events...I - 23 AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 13

20 FINANCIAL Notes to the Financial Statements September 30, 2007 (Unaudited) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The County owns and through the Aviation Fund of Broward County Aviation Department (BCAD), operates the Fort Lauderdale-Hollywood International Airport (FLL), a major air carrier airport and the North Perry Airport (HWO), a general aviation airport. The Aviation Fund is a major enterprise fund of Broward County. All accounts of FLL and HWO are included in the Aviation Fund. There are no other financial activities or funds considered for inclusion in BCAD s reporting entity. B. Basis of Accounting The BCAD s financial statements are presented using the flow of economic resources measurement focus and the accrual basis of accounting. The economic resources measurement focus reports capital assets and long-term debt on the statement of net assets. In turn, capital assets are depreciated and recorded as an expense on the operating statement. The accrual basis of accounting recognizes revenues when they are earned and expenses when incurred. However, during the fiscal year, BCAD operates using the flow of financial resources measurement focus and modified accrual basis of accounting to comply with the budgetary requirements of the County. Revenues from airlines, concessions, rental cars and parking are reported as operating revenues. Transactions which are capital, financing or investing related are reported as non-operating revenues. All expenses related to operating the airport are reported as operating expenses. Interest expense and financing costs are reported as non-operating expenses C. Net Assets Net assets represent the residual interest in BCAD s assets after liabilities are deducted and consist of three sections: Invested in capital assets, net of related debt, restricted and unrestricted net assets. Net assets invested in capital assets, net of related debt includes capital assets, restricted and unrestricted, net of accumulated depreciation, reduced by outstanding debt expended for capital assets. Net assets are reported as restricted when constraints are imposed by third parties or enabling legislation. All other net assets are unrestricted. D. Proprietary Accounting and Financial Reporting Pursuant to GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, BCAD applies all applicable GASB pronouncements as well as FASB Statements and Interpretations, APB Opinions, and ARB s issued on or before November 30, 1989, unless those pronouncements conflict or contradict GASB pronouncements. E. Cash and Cash Equivalents Cash and cash equivalents consist of amounts in demand deposits as well as investments with a maturity of three months or less from the date of purchase. AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 14

21 FINANCIAL Notes to the Financial Statements September 30, 2007 (Unaudited) F. Accounts Receivable Accounts receivable for the Aviation Fund are presented in the accompanying financial statements net of an allowance for uncollectible accounts of $1,938,000 and $1,947,000 at September 30, 2007 and 2006, respectively. G. Inventory Inventory consists of maintenance materials and supplies for consumption and is recorded at the lower of cost or market value, using the first-in, first-out method. H. Grants Receivable The amount due from other governments represents grants receivable from the Federal and State governments for their share of amounts expended on various capital projects. I. Deferred Bond Issue Costs Bond issue costs include underwriting spreads, insurance and various professional fees. The costs are deferred and amortized over lives of respective bond issues. J. Capital Assets Property, plant and equipment acquired by BCAD are carried at cost, net of accumulated depreciation. During construction of assets, interest incurred on related construction debt, less interest earned from investments whose use is related capital improvements, is capitalized from the time of borrowing until completion of the project. BCAD follows the policy of depreciating capital assets on the straight-line basis over the following estimated useful lives: Buildings and Facilities Furniture, Fixtures and Equipment 3-40 years 3-15 years K. Capitalized Interest Interest is capitalized during construction to Construction in Progress, and consists of interest expense on certain borrowings in excess of interest earned on related investments acquired with the proceeds of borrowings. L. Compensated Absences BCAD s policy is to permit employees to accumulate vacation and sick leave. The cost of earned but unused vacation is accrued as a liability in the period in which the leave is earned. A liability for earned but unused sick leave is accrued only to the extent that the leave will result in cash payments at termination. At September 30, 2007 and 2006, such amounts aggregate $3,434,000 and $3,507,000 respectively and are included in other current and long term liabilities. AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 15

22 FINANCIAL Notes to the Financial Statements September 30, 2007 (Unaudited) M. Deferred Revenues Airline Fees and Charges Deferred revenues represent revenues earned in excess of certain required deposits in accordance with the Airline-Airport Lease and Use Agreement. N. Capital Contributions Capital contributions consist mainly of grants from Federal and State governments. They are recognized as earned as related project costs are incurred. O. Passenger Facility Charges In 1990, Congress authorized domestic airports to impose a Passenger Facility Charge (PFC) on each departing passenger. Subsequently, the Federal Aviation Administration (FAA) issued regulations for the use and reporting of PFCs. Airports are authorized to use PFCs for projects that must meet at least one of the following eligibility requirements: (1) preserve or enhance safety, security, or capacity of the national transportation system; (2) reduce noise or reduce noise impacts resulting from an airport; or (3) furnish opportunities for enhanced competition between or among carriers. Effective January 1, 1995, the FAA authorized the Aviation Department to impose and use collected PFCs of $3.00 per departing passenger at Fort Lauderdale - Hollywood International Airport (the Airport). In July 2005, the Airport received approval from the FAA to implement a $4.50 PFC effective October 1, Through initial and subsequent FAA approvals, the Aviation Department is authorized to collect PFCs up to $571.2 million, of which $333.4 million has been collected as of September 30, The net receipts from PFCs are non-refundable and restricted to be used on FAA approved capital projects and debt service on revenue bonds that fund approved PFC eligible projects. As of September 30, 2007, $232.7 million of the collected PFCs had been spent on approved projects or debt service, and the remaining $100.7 million was reflected in restricted net assets. The ticketing airline includes the departing PFC in the price of each ticket when it is sold to the traveler. The $4.50 PFC collected by the airlines is remitted monthly to the Airport, less an $0.11 per passenger administrative fee. P. Pension Costs BCAD participates in the Florida Retirement System (FRS), a cost sharing, multiple-employer Public Employment Retirement System, which covers substantially all permanent full and part-time employees. The FRS is non-contributory and is totally administered by the State of Florida. Benefits are computed on the basis of age, average final compensation and service credit. Average final compensation is the average of the five highest fiscal years of earnings. The FRS provides vesting of benefits after six years of creditable service. Early retirement may be taken any time after vesting; however, there is a 5% benefit reduction for each year prior to normal retirement age or date. The FRS also provides death and disability benefits. A State Statute establishes benefits. Notes to the Financial Statements AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 16

23 FINANCIAL September 30, 2007 (Unaudited) Q. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. R. Reclassifications Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. NOTE 2 - CASH AND INVESTMENTS The County maintains a pool for substantially all cash and investments. Each fund type s portion of the pool is displayed on the balance sheet as cash and cash equivalents or restricted assets as appropriate. BCAD also maintains bond proceeds and debt service accounts with Wells Fargo Bank who in turn makes investments. At September 30, 2007 and 2006, BCAD s cash and investments consist of the following (in thousands): AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 17

24 NOTE 3 - ACCOUNTS RECEIVABLE FINANCIAL Notes to the Financial Statements September 30, 2007 (Unaudited) Accounts Receivable consists of the following (in thousands): NOTE 4 - RESTRICTED ASSETS Restricted assets and reserves of BCAD at September 30, 2007 represent amounts designated for construction and restricted for debt service, maintenance and improvements under the terms of outstanding bond agreements and regulatory requirements. The construction accounts include bond proceeds available for the design and construction of the major expansion projects. The bond reserve accounts contain the maximum amount of required principal and interest requirement on all outstanding bonds in a subsequent fiscal year. The principal and interest account contains the principal and interest amounts required for payment due on October 1. The passenger facility charges account contains amounts collected, but unspent and the airline fees and charges account contains remaining funds at year end after all required deposits were made from the operating account. Other capital funds account contains amounts to be used for renewal and replacement and improvements. Assets were restricted for the following purpose (in thousands): AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 18

25 FINANCIAL Notes to the Financial Statements September 30, 2007 (Unaudited) NOTE 5 - CAPITAL ASSETS A summary of changes in capital assets for the years ended September 30, 2007 and 2006 is as follows (in thousands): AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 19

26 FINANCIAL Notes to the Financial Statements September 30, 2007 (Unaudited) NOTE 6 - LEASE AND CONCESSION AGREEMENTS The following is a schedule by years of minimum future revenues on non-cancelable agreements: Total minimum future revenues do not include contingent revenues that may be received under certain concession leases on the basis of a percentage of the tenants gross revenue in excess of stipulated minimums. Contingent revenues amounted to approximately $ 41.2 million and $37.1 million for the years ended September 30, 2007 and 2006, respectively. AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 20

27 NOTE 7 - LONG-TERM LIABILITIES FINANCIAL Notes to the Financial Statements September 30, 2007 (Unaudited) A summary of long-term liability activity for the years ended September 30, 2007 and 2006 was as follows (in thousands): AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 21

28 A schedule of debt maturities is as follows: FINANCIAL Notes to the Financial Statements September 30, 2007 (Unaudited) $17,166,000 Notes Payable to Florida Department of Transportation due in fiscal years , is a non-interest bearing loan used to fund the terminal roadways capital project. A description of the bonds is as follows: $75,560,000 Airport System Revenue Refunding Bonds Series E, dated July 15, 1998 was issued for the purpose of redeeming $75,000,000 Airport System Revenue Bonds, Series B. $10,530,000 Airport System Revenue Bonds Series F, dated July 15, 1998 was issued to pay certain project costs and issuance costs. $63,515,000 Airport System Revenue Bonds Series G, dated December 16, 1998 were issued to pay costs of the 1998 Project and to fund additional reserves, capitalized interest and issuance costs. $126,670,000 Passenger Facility Charge/Airport System Revenue Convertible Lien Bonds Series H, dated December 16, 1998 was issued for the purpose of funding the 1998 Project and issuance costs. $41,855,000 Passenger Facility Charge/Airport System Revenue Convertible Lien Bonds Series I, dated May 24, 2001 was issued to pay a portion of the costs of the 2001 PFC Project and issuance costs. $285,155,000 Airport System Revenue Bonds Series J, dated May 24, 2001 was issued for the purpose of funding the consolidated rental car and public parking facility, capitalized interest and issuance costs. $87,360,000 Airport System Revenue Refunding Bonds Series K, dated July 2, 2003 was issued to redeem $89,160,000 Airport System Revenue Refunding Bonds, Series C. AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 22

29 FINANCIAL $142,015,000 Airport System Revenue Bonds Series L, dated October 22, 2005 was issued to pay for the 2004 Project, capitalized interest and issuance costs. $105,225,000 Airport System Revenue Bonds, Series M, dated October 29, 2004 was issued to pay for the 2004 Project, fund the increase in Reserve Requirement, capitalized interest, and issuance costs. NOTE 8 - CAPITAL CONTRIBUTIONS Grants and other contributions used to acquire capital assets are classified as capital contributions in the Statement of Revenues, Expenses and Changes in Net Assets. Capital contributions consisted of the following at September 30, (in thousands): NOTE 9 AIRLINE-AIRPORT LEASE AND USE AGREEMENT BCAD has entered into a 25-year Lease and Use agreement with its major airline tenants (signatory airlines) whereby a residual rate setting methodology was established for the terminal complex and the airfield. The Airline Agreements terminate on September 30, The agreements require that landing fees and terminal rentals be reviewed annually and adjusted as necessary so that the total revenue is sufficient to meet BCAD s requirements as determined by the signatory airline agreements. At the end of the fiscal year, after all required deposits have been made; any remaining excess funds are used to meet the requirements in the following fiscal year. These excess funds have been recorded as deferred revenue by BCAD at September 30, 2007 and have been included in current liabilities payable from restricted assets. For the year ended September 30, 2007, these funds amounted to $20,320,000. NOTE 10 - COMMITMENTS AND CONTINGENT LIABILITIES Federal and State of Florida grants are subject to audit by the granting agencies to determine if activities comply with conditions of the grant. Management believes that no material liability will arise from any such audits. At September 30, 2007, BCAD had in process various uncompleted construction projects with remaining balances totaling $77,850,000. The retainage payable on these contracts totaled $6,813,000. Funding of these projects is to be made primarily through the proceeds of the related bond issues. NOTE 11 - SUBSEQUENT EVENTS None AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT I - 23

30 SUPPLEMENTARY INFORMATION Supplementary Information Locator Guide September 30, 2007 Combining Statement of Net Assets... II 2 Combining Statement of Revenues, Expenses and Changes in Net Assets... II 4 Combining Statements of Cash Flows... II 6 Debt Service Requirements to Maturity... II 8 Debt Service to Maturity by Series... II 9 to 14 Deposits to and Withdrawals from Special Funds and Accounts Created by Airport Bond Resolutions and The Airline-Airport Lease & Use Agreement II 15 Airport System Revenue Bonds Debt Service Coverage... II 16 Passenger Facility Charge Convertible Lien Bonds Sufficiency Test... II 17 AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 1

31 SUPPLEMENTARY INFORMATION COMBINING STATEMENT OF NET ASSETS September 30, 2007 (in thousands) (Unaudited) Airport System Operation and Airline Fees Renewal & Maintenance and Charges Replacement Improvement ASSETS Total Account Account Account Account Current Assets: Cash and Cash Equivalents $ 30,677 $ 29,677 $ 1,000 $ - $ - Receivables (Net) 6,446 6, Inventory Other Current Assets 3,715 3, Total Current Assets 41,157 40,157 1, Restricted Assets: Cash and Cash Equivalents 86,699 52,861 20, Investments 382,048 38,695-26,138 3,101 Grant Receivables 10, Total Restricted Assets 479,500 91,556 20,320 26,389 3,101 Fixed Assets: Land and Improvements 282, , Buildings & Facilities 1,093,465 1,093, Equipment 14,717 14, Construction in Progress 168, , Total Fixed Assets (Gross) 1,559,933 1,559, Less Accumulated Depreciation (275,646) (275,646) Total Fixed Assets (Net) 1,284,287 1,284, Other Assets: Deferred Bond Issuance Cost 9,147 9, Total Assets $ 1,814,091 $ 1,425,147 $ 21,320 $ 26,389 $ 3,101 LIABILITIES AND NET ASSETS Liabilities: Current Liabilities: Vouchers Payable and Accrued Liabilities 25,881 25, Other Current Liabilities 3,172 3, Total Current Liabilities 29,053 29, Current Liabilities Payable from Restricted Assets: Vouchers Payable and Accrued Liabilities 15, Accrued Interest Payable 19,618 19, Revenue Bonds Payable 35,875 35, Deferred Revenue-Airline Fees and Charges 20,320-20, Total Current Liabilities Payable from Restricted Assets 90,939 55,493 20, Long Term Liabilities: Revenue Bonds Payable 797, , Notes Payable 17, Other Long Term Liabilities 9,690 7, Total Long Term Liabilities 824, , Total Liabilities 944, ,705 20, Net Assets: Invested in Capital Assets, Net of Related Debt 634, , Restricted: Debt Service 55,024 55, Passenger Facility Charge 100, Capital Projects 57, ,713 3,084 Total Restricted 847, ,447-25,713 3,084 Unrestricted 21,995 20,995 1, Total Net Assets 869, ,442 1,000 25,713 3,084 Total Liabilities and Net Assets $ 1,814,091 $ 1,425,147 $ 21,320 $ 26,389 $ 3,101 AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 2

32 SUPPLEMENTARY INFORMATION Facilities Passenger Improvement & Restricted Facility Development Discretionary Asset Charges Construction Account Account Account Account Account $ - $ - $ - $ - $ ,586-5,932 10,058 13,298 1, , ,613 5, ,965 23,088 13,298 1, , , $ 23,088 $ 13,298 $ 1,534 $ 100,704 $ 199, , , , , , , , ,547 4, , ,704-18,991 13,298 1,451 - (5,290) 18,991 13,298 1, ,704 (5,290) ,991 13,298 1, ,704 (5,290) $ 23,088 $ 13,298 $ 1,534 $ 100,704 $ 199,510 AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 3

33 SUPPLEMENTARY INFORMATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS September 30, 2007 (In Thousands) (Unaudited) Airport System Operation and Airline Fees Renewal & Maintenance and Charges Replacement Improvement Total Account Account Account Account Operating Revenue: Concessions $ 41,282 $ 41,282 $ - $ - $ - Parking 42,463 42, Terminal Rents and Charges 35,550 35, Airfield Fees and Charges 15,151 15, Building and Ground Rentals 35,626 35, Miscellaneous Fees 1,259 1, Total Operating Revenue 171, , Operating Expenses Before Depreciation: Personal Services 26,977 26, Contractrual Services 73,917 73, Other 25,003 25, Capital Outlay , Total Expenses Before Depreciation 125, ,363-4, Operating Income Before Depreciation 45,434 45,968 - (4,100) (499) Depreciation 34,228 34, Operating Income 11,206 11,740 - (4,100) (499) Non-Operating Income (Expense): Federal & State Grants 1,618 1, Passenger Facility Charges 45, Interest Income 25,503 6,889-1, Interest Expense (41,627) (41,627) Amortization of Bond Issuance Cost (817) (817) Gain (Loss) on Disposal of Asset Other Non-Operating (130) (130) Total Non-Operating Income 30,079 (34,061) - 1, Net Income Before Contributions and Transfers 41,285 (22,321) - (3,047) (346) Capital Contributions 13, Oper. Transfer In (Out) from Operating and Maint. Acct. 55,297 23,913-6, Oper. Transfer In (Out) from Airlines Fees & Charges Acct Oper. Transfer In (Out) from Passenger Fac. Charges Acct. (55,297) (7,497) - (1,000) - Oper. Transfer In (Out) From Construction Account Change in Net Assets 55,226 (5,905) - 2, Total Net Assets, Beginning of period 814, ,557 14,000 30,035 4,170 Total Net Assets, End of period $ 869,393 $ 642,652 $ 14,000 $ 32,935 $ 4,396 AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 4

34 SUPPLEMENTARY INFORMATION AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 5

35 SUPPLEMENTARY INFORMATION COMBINING STATEMENT OF CASH FLOWS September 30, 2007 (in thousands) (Unaudited) Airport System Operation and Airline Fees Renewal & Maintenance and Charges Replacement Improvement Total Account Account Account Account Cash Flows from Operating Activities: Cash Received from Customers $ 167,999 $ 171,117 $ (3,118) $ - $ - Cash Payments to Suppliers for Goods and Services (97,881) (97,347) - (329) (104) Cash Payments to Employees for Services (26,255) (26,255) Net Cash Provided by (Used for) Operating Activities 43,863 47,515 (3,118) (329) (104) Cash Flows from Noncapital Financing Activities: Grants 1,618 1, Operating Transfers In 23,887 (7,497) - 6, Operating Transfers Out (23,887) 23,913 - (1,000) - Net Cash Provided by (Used for) Noncapital Financing Activities 1,618 18,034-5, Cash Flows from Capital and Related Financing Activities: Loan Proceeds Acquisition and Construction of Property, Plant and Equipment (87,412) - - (3,771) (395) Proceeds from Sale of Assets Debt Principal Payment (34,245) (34,245) Interest and Fiscal Charges (42,389) (42,389) Capital Contribution 18, Receipt of Passenger Facility Charges 45, Net Cash Provided by (Used for) Capital and Related Financing Activities (99,679) (76,503) - (3,771) (395) Cash Flows from Investing Activities: Purchase of Investment Securities (550,150) Proceeds from Sale and Maturities of Investment Securities 615, Interest and Dividends on Investments 25,503 6,889-1, Net Cash Provided by (Used for) Investing Activities 90,855 6,889-1, Net Increase (Decrease) in Cash and Cash Equivalents 36,657 (4,065) (3,118) 2, Cash and Cash Equivalents, Beginning of Period 80,719 38,219 14, Cash and Cash Equivalents, End of Period 117,376 34,154 10,882 2, Cash and Cash Equivalents in Current Assets 30,677 29,677 1, Cash and Cash Equivalents in Restricted Assets 86,699 52,861 20, Total Cash and Cash Equivalents (Above) $ 117,376 $ 82,538 $ 21,320 $ - $ - Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities: Operating Income (Expense) $ 11,206 $ 11,740 $ - $ (329) $ (104) Adjustments to Reconcile Operating Income to Cash Flows from Operating Activities: Depreciation Expense 34,228 34, Miscellaneous Non-Operating Income (130) (130) Changes in Assets and Liabilities: (Increase) Decrease in Accounts Receivable (3) (3) (Increase) Decrease in Inventory (Increase) Decrease in Other Current Assets (1,370) (1,370) Increase (Decrease) in Vouchers Payable and Accrued Liabilities (635) 2,483 (3,118) - - Increase (Decrease) in Other Current Liabilities Net Adjustments 32,657 35,775 (3,118) - - Net Cash Provided by (Used for) Operating Activities $ 43,863 $ 47,515 $ (3,118) $ (329) $ (104) AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 6

36 SUPPLEMENTARY INFORMATION Facilities Passenger Improvement & Restricted Facility Development Discretionary Asset Charges Construction Account Account Account Account Account $ - $ - $ - $ - $ - (78) - (23) (78) - (23) ,016-1,000 22, (46,800) - 1,016-1,000 (46,800) 22, (19,368) - (2,555) - (61,323) , ,526 - (19,368) - (2,555) 45,526 (42,613) (550,150) , ,660 10, ,660 75,584 (17,621) 693 (1,564) 4,386 55, ,500 (17,621) 693 (1,564) 4,386 84, , ,932 $ 7,586 $ - $ - $ - $ 5,932 $ (78) $ - $ (23) $ - $ $ (78) $ - $ (23) $ - $ - AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 7

37 SUPPLEMENTARY INFORMATION AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 8

38 SUPPLEMENTARY INFORMATION AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 9

39 SUPPLEMENTARY INFORMATION AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 10

40 SUPPLEMENTARY INFORMATION AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 11

41 SUPPLEMENTARY INFORMATION AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 12

42 SUPPLEMENTARY INFORMATION AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 13

43 SUPPLEMENTARY INFORMATION AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 14

44 SUPPLEMENTARY INFORMATION SCHEDULE OF DEPOSITS TO AND WITHDRAWALS FROM SPECIAL FUNDS AND ACCOUNTS CREATED BY AIRPORT BOND RESOLUTIONS AND THE AIRLINE-AIRPORT LEASE & USE AGREEMENT For The Twelve Months Ended September 30, 2007 (in thousands) (Unaudited) Restricted Accounts/Funds Bond Debt Service Accounts/Funds: Series E and F Principal and Interest 3,131 Balances Balances Oct. 1, 2006 Deposits Withdrawals Sept.30, 2007 $ $ 5,209 $ 5,109 $ 3,231 Series G Principal and Interest 3,157 5,598 4,329 4,426 Series H Principal and Interest 6,793 9,305 9,028 7,070 Series I Principal and Interest 2,000 3,020 2,945 2,075 Series J Principal and Interest 13,976 22,695 21,948 14,723 Series K Principal and Interest 17,589 18,699 17,830 18,458 Series L Principal and Interest 7,554 10,734 10,466 7,822 Series M1 & M2 Principal and Interest 2,343 5,672 7, Bond Reserves 49,855 2, ,262 Total Bond Debt Service Accounts/Funds 106,398 83,339 79, ,517 Capital Construction Accounts/Funds: Construction Funds 193,300 55,609 73, ,586 Renewal and Replacement 23,812 8,000 5,674 26,138 Discretionary 12, ,296 Facilities Improvements and Development 26,002 15,297 23,655 17,644 Restricted Assets-North Perry 1,085 3,017 2,661 1,441 Improvements 2, ,101 Passenger Facilities Charges 96,318 51,186 46, ,704 Total Capital Construction Accounts/Funds 356, , , ,910 Airline Fees and Charges Sub-Account 23,438 20,320 23,438 20,320 Total Restricted Accounts/Funds $ 485,887 $ 238,184 $ 255,324 $ 468,747 Restricted Account Balances: Cash and Cash Equivalents $ 38,487 $ 86,699 Investments 447, ,048 Total Restricted Accounts/Funds (As Above) 485, ,747 Revenue Account 42, , ,312-30,677 Total Cash, Cash Equivalents and Investments $ 528,119 $ 444,941 $ 473,636 $ 499,424 Note: All ending balances include accrued interest AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 15

45 SUPPLEMENTARY INFORMATION AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 16

46 SUPPLEMENTARY INFORMATION AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT II - 17

47 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 1

48 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 2

49 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 3

50 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 4

51 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 5

52 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 6

53 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 7

54 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 8

55 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 9

56 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 10

57 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 11

58 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 12

59 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 13

60 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 14

61 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 15

62 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 16

63 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 17

64 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 18

65 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 19

66 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 20

67 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 21

68 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 22

69 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 23

70 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 24

71 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 25

72 STATISTICS DOMESTIC PASSENGER ORIGIN-DESTINATION MARKETS Fort Lauderdale-Hollywood International Airport For the 12 months ended September, Market of Origin or Destination 1 Air Miles from FLL % Share New York 21.1% John F Kennedy 1, % La Guardia 1, % Newark Intl 1, % Islip (MacArthur 1, % Washington D.C./Baltimore 5.9% Baltimore/Wash Int'l % Dulles Intl % Ronald Reagan Nt % Chicago 4.4% O'Hare Intl 1, % Chicago Midway % Other Cities Boston 1, % Philadelphia Int % Atlanta % Detroit 1, % Los Angeles Intl 2, % Tampa Intl % Las Vegas 2, % San Juan, P.R. 1, % Dallas/Ft Wor In 1, % Jacksonville Int % Hartford 1, % Denver Intl 1, % Orlando Intl % Pittsburgh Intl % Charlotte % Nashville % Providence 1, % Phoenix 1, % Cleveland 1, % St. Louis 1, % Houston % Atlantic Cty Int % Indianapolis 1, % Cities Listed 70.8% All Others 29.2% Total 100.0% (1) Markets with 1.0 percent or more of total inbound and outbound domestic passengers on scheduled airlines at the Airport on the basis of a 10 percent sample for the 12 months ended September 30, AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 26

73 STATISTICS SCHEDULED AIRLINES AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 27

74 STATISTICS COMMUTER AIRLINES CHARTERS CARGO CARRIERS. AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 28

75 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 29

76 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 30

77 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 31

78 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 32

79 STATISTICS AVIATION DEPARTMENT - FY 2007 ANNUAL FINANCIAL REPORT III - 33