Those Present: Those Absent:

1. Call to Order.

Vice Chairman Stafford called the budget workshop meeting to order at 10:30 a.m.

PRESENTATION OF FY 2021 SMAA BUDGET (Agenda Item 2)

Mr. Piccolo presented the FY 2021 proposed budget and gave an overview of significant items through a PowerPoint presentation. He advised that this year's presentation is a little different given the circumstances of the past month with COVID 19 and future unknowns. He complimented his staff for doing a great job with their budgets by preparing two departmental expense budgets, one that would hold the line and the other for the possibility of absolute Draconian changes. We now see that we do not need to implement the severe changes and able to stay within our initial budget projections.

Mr. Piccolo reviewed the old rate-making methodology versus the new rate methodology, which is in its seventh year, with two years remaining on the agreements. From the PowerPoint, he pointed out significant revenue changes in FY 2021 including a decrease of $3,421,864 in revenue contribution to airline rates. Projected net revenue for the FY 2020 budget was $1,663,221, but that will not occur due to COVID 19. The airport utilized $2,423,298 in CARES Fund in the FY 20 budget, with some credited back into the airline rate model, with some not qualified to go towards the rate model (i.e. marketing costs, etc., not covered under the airline agreement). As of July, our cash flow was slightly over $17 Million.

He discussed major revenue changes in FY 2021. Total Airline revenue increases by $589,000, mostly due to the airlines coming off the incentive programs. We project to see decreases in non-airline revenues ($7.2 Million), RACs ($3.1 Million), parking revenue ($2.5 Million), non-aviation building revenues ($88,000) and concessions advertising ($537,158) in the FY 2021 projected budget. He noted that we always estimate revenues lower and expenses higher to ensure we have no shortfalls for the year. Total projected revenues are non-airline ($6,959,907), airline revenues ($8,272,200), operating & other ($15,232,107), and $3.1 Million in total CARES funds budgeted, with the projected deficit for FY 2021 at $1,373,879. He explained reasons for not using additional CARES funds to lower the projected deficit.

Mr. Piccolo reviewed major expense changes to the budget with the overall operational expenses decreasing by $198,352, utilities decrease 0.1%, personnel expense decrease by $107,885, operations decreases 0.2%, with administration expenses increasing by 4.5%, and