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Item L2 L2 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE Mayor Craig Cates,District 1 The Florida Keys Mayor Pro Tern Holly Merrill Raschein,District 5 Michelle Lincoln,District 2 James K.Scholl,District 3 m' David Rice,District 4 Board of County Commissioners Meeting November 8, 2023 Agenda Item Number: L2 2023-1773 BULK ITEM: No DEPARTMENT: Airports TIME APPROXIMATE: STAFF CONTACT: Richard Strickland N/A AGENDA ITEM WORDING: Approval of the FY2024 Airline Rates and Charges for the Key West International Airport effective October 1, 2023. The rates are adjusted as follows: Terminal Rental Rate $75.90 per square foot($5.11 increase over FY23 mid-year rate), Landing Fee Rate $3.97 ($0.28 increase over FY23 mid-year landing fee rate) and Checkpoint Security Charge $2.02 per enplaned passenger ($0.24 increase over FY23). The average Airline Cost per Enplaned Passenger (CPEP)will be $10.66 ($0.69 increase over FY23 mid-year CPEP). ITEM BACKGROUND: As part of the Airport's annual budget process,Newton &Associates, Inc. has updated the Airport's Rates and Charges. All airlines received the FY2024 Budget Rates and Charges on August 1, 2023, and on September 6, 2023, a meeting was conducted with the Airlines to discuss the FY2024 Budget Rates and Charges. Participating Airline representatives were from Allegiant, American and Delta. A mid-year review and a final year-end reconciliation will be conducted based upon the rate structure in place with the Airlines. Airline underpayments will be billed to the air carriers and overpayments will be refunded by the Airport via credits to air carriers' invoices. PREVIOUS RELEVANT BOCC ACTION: Approval of annual Airline Rates and Charges each year if changes are made. CONTRACT/AGREEMENT CHANGES: New Airline Rates and Charges. STAFF RECOMMENDATION: DOCUMENTATION: EYW FY2024 Rates & Carges.pdf 1449 FINANCIAL IMPACT: Revenue producing of approximately $7,772,962 for FY2024. 1450 KEY WEST INTERNATIONAL AIRPORT FY 2024 Budget Rates & Charges SUMMARY Mid-Year Budget Variance Variance FY 2023 FY 2024 Amount Percent Total Airport Operating&Maintenance Expense $11,105,544 $11,895,553 $790,009 7.11% Total Airport Capital Expense 331,543 300,388 ($31,156) -9.4% Total Airport Operating, Maintenance&Capital Expense $11,437,087 $12,195,940 $758,853 6.64% Terminal Building: Terminal Requirement $4,358,272 $4,672,893 $314,621 7.22% Terminal Productive Square Footage 61,564 61,564 0 0.0% Terminal Rental Rate Per Square Foot $70.79 $75.90 $5.11 7.22% Mid-Year Rate-5 months $73.32 $0.00 Airline Square Footage-Occupied 36,233 36,233 0 0.00% Airline Terminal Rentals-Occupied $2,565,026 $2,750,194 $185,168 7.22% Airline Direct Amortization Charge(Baggage Device) $0 $0 $0 N/A $2,565,026 $2,750,194 $185,168 7.2% Airfield: Net Airfield Requirement $3,459,680 $3,604,300 $144,619 4.18% Total Aircraft Landed Weight 938,891 909,000 (29,891) -3.18% Airfield Landing Fee Rate Per 1,000 Pounds $3.68 $3.97 $0.28 7.61% Mid-Year Rate-5 months $4.11 Passenger Aircraft Landed Weight 925,000 895,109 (29,891) -3.23% Passenger Airline Landing Fees $3,408,494 $3,549,220 $140,726 4.13% Security Reimbursement Direct Bill Charges $1,302,619 $1,473,549 $170,930 13.12% Enplaned Passengers 729,221 728,871 (350) -0.05% Per Enplaned Passenger $1.79 $2.02 $0.24 13.18% Total Estimated Airline Payments $7,276,139 $7,772,962 $496,824 6.83% Total Cost Per Airline Enplaned Passenger $9.98 $10.66 $0.69 6.88% Newton&Associates,Inc. 8/1/2023 FY 2024 Budget Rates&Charges 1451