Annual Report 2012 - Kansas City International Airport

City of Kansas City, Missouri Department of AviationManagement’s Discussion and AnalysisYears Ended April 30, 2012 and 2011SUMMARY OF OPERATING EXPENSESOperating expenses in FYE12 decreased approximately $1.02 million, or 1.3%, from the previousyear. Salaries, wages and employee benefits remained relatively stable, increasing byapproximately $279 thousand, or 1.0%. Contractual services decreased by approximately $1.13million, or 2.5%. This reduction was in part the result of reduced administrative costs and lowerinsurance claims expenses. Commodities expense decreased slightly by approximately $165thousand, or 3.7%, primarily from a reduction in the costs for vehicle replacement parts.81,000,00080,000,00079,000,00078,000,00077,000,00076,000,000Total Operating ExpensesFYE08 FYE09 FYE10 FYE11 FYE12Operating expenses in FYE11 decreased approximately $1.1 million, or 1.4%, from the previousyear. Salaries, wages and employee benefits decreased by approximately $1.9 million, or 6.2%.This reduction occurred largely as a result of a reduction in staffing and an approximate $1 millionreduction in expenses related to other post-employment benefits. Contractual services remainedrelatively flat increasing by $285 thousand, or 0.6%. Commodities expense increased byapproximately $520 thousand, or 13.3%, primarily from a $400 thousand increase in aviation fuelcosts.Operating expenses, excluding depreciation and amortization, for the past three fiscal years areitemized as follows (in thousands):April 30,2012 2011 2010Salaries, Wages and Benefits $ 29,544 $ 29,265 $ 31,200Contractual Services 43,879 45,013 44,728Commodities 4,280 4,445 3,925Total $ 77,703 $ 78,723 $ 79,853A-12