capital equipment expenses decrease by 100% as there will be no major purchases this coming year.

Mr. Piccolo reviewed the Terminal Rental Rates and Landing Fees for Tampa and Southwest International compared to SRQ. Our terminal rental rates will decrease from $63.38 to $61.67; landing fees will decrease from $0.63 to $0.48, with the cost per enplaned passenger going up 6.9%, but we continue to have the lowest unit cost in landing fees and terminal rental rates than our major competing airports. He reviewed the revenue numbers and noted that the SRQ parking rates will remain unchanged and are lower or within $1.00 of our competing airports.

Mr. Piccolo advised that our operating expense decreases by $198,352. Under Personnel, Four full time and 5 part time positions have been eliminated, which remain below our 1990 position levels despite numerous lighting and pavement additions on the airfield, new technology for security and regulatory requirements from TSA and FAA. He stated we have major expense increases noted in seven areas: health insurance, retirement contribution, workers compensation, property insurance, liability insurance, legal costs, all of which are outside our control, with janitorial supplies increasing to accommodate the new cleaning protocols in place due to COVID-19. He noted that all of these increased items equal approximately $650,000, therefore the overall expense decrease of $198,352 (down by a combined $848,000) was achieved by reductions in other areas. He feels that staff has done a great job to produce a decrease in the airport's operating expenses.

Mr. Piccolo discussed funding for the supplemental marketing Budget, which is not eligible in the airline rate base, with the funding coming from Interest Earnings, eliminating any revenue diversion with the airlines since the funding is outside the signatory agreements. We maintain great marketing partnerships with the CVBs' and local partners such as IMG, the Orioles, Pirates, Nathan Benderson Park, and a variety of cultural organizations.

Mr. Piccolo reviewed the major capital projects and stated we have a total of 19 projects of various sizes and scope included in the budget over $13 Million, with 63% funded by state and federal grant monies. The major projects include apron construction in North Quad, terminal curbside renovations and the rental car office improvements. He reviewed some debt service challenges experienced by the surrounding area airports and noted we have $17.7 Million of CARES funds remaining and approximately $20 Million of unrestricted and restricted reserves with no debt, which will allow us tremendous coverage and flexibility to use the CARES funds strategically in the future. He plans to discuss with the airlines the possibility of extending the existing agreements to offer rate stability through the CARES Act.

Mr. Piccolo concluded the PowerPoint presentation and stated that the next step would be for the Board to approve at today's meeting, a Public Hearing for approval of the FY 2021 Budget at the September Regular Meeting. Staff will meet with the airlines on Tuesday to review and discuss the Budget and will keep the Board informed. He does not expect any issues and believes this is an outstanding budget to offer. The Airport is in a great financial position going forward and continues to be fiscally conservative.

Following a question from Commissioner Beruff, Mr. Piccolo answered questions on the CARES Act funds and advised that the funds can be used for any lawful purpose, whether for reimbursement of expenses or projects and will be used totally by the airport for those purposes. Commissioner Beruff felt that we should advance the planning and expansion of our terminal as soon as possible. He stated that the housing industry is experiencing a huge boon in the state, with Sarasota Bradenton being one of the most desirable places in Florida, and SRQ will be greatly impacted by that growth. We should start moving ahead with the paperwork for the