City and County of Denver Municipal Airport System ANNUAL ...

More documents

Recommendations

Info

City and County of Denver Municipal Airport System MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) December 31, 2010 and 2009 % Total Operating Expenses Before Depreciation and Amortization (In thousands) $200,000 $180,000 42% 44% 44% $160,000 $140,000 $120,000 27% 26% 31% 31% $100,000 $80,000 $60,000 18% 18% $40,000 $20,000 5% 7% 7% $0 2010 2009 2008 Personnel Service Repair and Mantenance projects Contractual services Maintenance, supplies and materials 2010/2009 Operating expenses before depreciation and amortization increased by $30.4 million, or 8.0%, from $379.5 million in 2009 to $409.9 million in 2010. Personnel services decreased by $4.3 million, or 3.7%, in 2010 which was due to a decrease in snow overtime and direct labor and benefits associated with furlough days taken by personnel in 2010 which was offset by an increase in other city personnel. Contractual services increased in 2010 compared to 2009 by $6.0 million, or 3.6%, due primarily to an increase in banking service, electricity, trash removal, management services, repairs and maintenance of the baggage system, the AGTS train system, nonstructural improvements and roads offset by a decrease in snow removal, janitorial services, and repair and maintenance of building equipment. Repair and maintenance projects increased by $36.0 million, or 51.4%, which is primarily due to the expenses for the Flight Information Display system (FIDS), baggage system removal, roadways and surface repairs (apron and ramp), central plant repairs, Concourse A expansion, the South Terminal Redevelopment Program, and parking structure stairway replacements. 16
City and County of Denver Municipal Airport System MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) December 31, 2010 and 2009 Maintenance, supplies and materials decreased $7.3 million, or 27.6%, to $19.2 million from $26.5 million in 2009 due to decrease in runway lightings, emergency lighting, and commercial chemicals and solvents due to the decrease in price and usage, which is offset by an increase in natural gas and periodicals and bulletins. 2009/2008 Operating expenses before depreciation and amortization increased by $5.7 million, or 1.5%, from $373.8 million in 2008 to $379.5 million in 2009. Personnel services increased by $2.3 million, or 2.0%, in 2009 which was due to an increase in health insurance, worker compensation, special incentive early retirement and other City agency salaries. Repair and maintenance projects increased by $2.2 million, or 3.3%, related to the $12.5 million United payment for the release of 5 gates on Concourse B which is being amortized over a six-year period, which was offset by a decrease in construction projects being expensed for 2009. Maintenance, supplies and materials increased $1.0 million, or 4.0%, to $26.5 million from $25.5 million in 2008 due to increases in runway lighting, and air conditioning repair parts. The majority of the increase was related to the increase in commercial chemicals and solvents due to the increase in price and usage. Contractual services increased in 2009 compared to 2008 by $.2 million due primarily to an increase in shuttle buses and City agency charges offset by a decrease in electricity, snow removal and other contractual services. Nonoperating Revenues and Expenses, Capital Grants and Capital Contributions 2010/2009 Total nonoperating expenses, net of nonoperating revenues, increased by $28.0 million to $87.8 million in 2010. The increase was due principally to a decrease in investment income of $26.5 million, net of a receipt of $11.1 million for the termination of the 2007A swaps. There was an increase of $5.7 million or 5.9% in Passenger Facility Charges (PFCs) and an increase in other expense due to the clean up of Stapleton. In 2010 and 2009, capital grants totaled $25.7 million and $37.0 million, respectively. The decrease was due to the decrease in reimbursements in 2010 for the FAA grants and the Airport receiving grant allocations through the recently enacted American Recovery and Reinvestment Act of 2009. 2009/2008 Total nonoperating expenses, net of nonoperating revenues, increased by $14.8 million to $59.8 million in 2009. The increase was due largely to a decrease in investment income of $13.2 million, which was due to a decrease in yields from 3.91% in 2008 to 2.05% in 2009 and an unrealized loss on investments of $23.9 million offset by an increase in fair value of derivative instruments. An increase in other expense net, of $11.6 million or 134.2% was due to an increase in Stapleton expenses and the reversal of K-9 grant monies that were never received. The increase in total nonoperating expenses, net of revenues, was partially offset by a decrease in interest expense and a small increase in PFC revenues. In 2009 and 2008, capital grants totaled $37.0 million and $14.0 million, respectively. The increase was due to the increase in reimbursements in the FAA grants and the Airport receiving grant allocations through the recently enacted American Recovery and Reinvestment Act of 2009. 17
Page 1: City and County of Denver Municipal
Page 4 and 5: City and County of Denver Municipal
Page 12 and 13: THIS PAGE LEFT BLANK INTENTIONALLY
Page 14 and 15: Audit Committee City and County of
Page 70 and 71:
THIS PAGE LEFT BLANK INTENTIONALLY
Page 72 and 73:
City and County of Denver Municipal
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82:
THIS PAGE LEFT BLANK INTENTIONALLY
show all

City and County of Denver Municipal Airport System ANNUAL ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?