FINAL REPORT - San Bernardino Superior Court

Section 1: Financial Condition
Chart 1.2
Four-Year Comparison of SCLAA Operating Surplus/(Deficit)
$0
($2,000,000)
($4,000,000)
($6,000,000)
($8,000,000)
($10,000,000)
($12,000,000)
($14,000,000)
($16,000,000)
($18,000,000)
Operating
Surplus/(Deficit)
FY 2007‐08 FY 2008‐09 FY 2009‐10 FY 2010‐11
($15,144,633) (15,926,140) (5,546,474) (7,907,250)
Source: Southern California Airport Authority Financial Statements
City management has reported that SCLAA’s airport operations 4 is expected to break even this
fiscal year, meaning that operating revenues will equal operating expenditures. However, long
term debt, including bond indebtedness and inter-fund loans, is not considered part of the
operating budget.
Insolvency
Over the past four fiscal years, SCLAA’s liabilities have exceeded its assets, resulting in
negative net assets. As shown in Table 1.5 below, SCLAA’s net assets were negative
$100,116,522 as of June 30, 2011.
Table 1.5
Four-Year Comparison of SCLAA Assets and Liabilities
Fiscal Year Assets Liabilities Net Assets
FY 2007-08 $334,570,562 $389,179,948 $(54,609,386)
FY 2008-09 292,558,832 345,089,580 (52,530,748)
FY 2009-10 254,627,190 355,966,415 (101,339,225)
FY 2010-11 250,708,960 350,825,481 (100,116,521)
4-Year Average $283,116,386 $360,265,356 $(77,148,970)
Source: Southern California Airport Authority Financial Statements
4 “Airport operations” refers only to those operations directly related to the management and administration of the
airport. Airport operations does not include development activities that are not directly related to the airport.
1-8
Harvey M. Rose Associates, LLC