FINAL REPORT - San Bernardino Superior Court

Section 1: Financial Condition
Southern California Logistics Airport Authority
The Southern California Logistics Airport Authority is a joint powers agency that secures
funding, oversees development and redevelopment in a joint project area, and manages and
operates the former George Air Force Base under a base conversion agreement with the federal
government. From FY 2007-08 through FY 2010-11, SCLAA has had negative net assets. In FY
2010-11, negative net assets grew to $100,116,522 and is a result of (a) multi-year operating
deficits; (b) long-term liabilities that exceed assets, including excessive debt; and (c) insufficient
pledged revenue to meet debt payments, year after year. The SCLAA’s solvency and ability to
repay debt is another area of concern.
Operating Deficit
Similar to the General Fund, operating expenditures at SCLAA has exceeded operating revenues.
In other words, SCLAA has not collected enough rent revenue from tenants at the airport to
support its own operation. As a result, the General Fund, as well as other funds, has had to
transfer funds to SCLAA to support airport operations. Table 1.4 below provides details of
SCLAA’s expenditures and revenues over the past four fiscal years. Chart 1.2 also illustrates
SCLAA’s on-going operating deficit.
Table 1.4
Four Year Comparison of SCLAA Actual Revenues and Expenditures
Operating
Fiscal Year Revenues Expenditures Surplus/(Deficit)
FY 2007-08 $8,842,868 $23,987,501 $(15,144,633)
FY 2008-09 7,465,482 23,391,622 (15,926,140)
FY 2009-10 8,254,815 13,801,289 (5,546,474)
FY 2010-11 9,295,069 17,202,319 (7,907,250)
4-Year Average $8,464,559 $19,595,683 $(11,131,124)
Source: Southern California Airport Authority Financial Statements
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