HomeMy WebLinkAboutFiscal Year 2025 2-A 2A
Key West International Airport
Monroe County, Florida
i i tatements and
Independent Auditor's Report
September 30, 2025
PURVIs GiZAY
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KEY WEST INTERNATIONAL AIRPORT
K8ONRQE COUNTY, FLORIDA
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITOR'S REPORT
8EPTEK8BER 30\2026
TABLE OFCONTENTS
Introductory Section (Unaudited)
Transmittal Letter of the Clerk of the Circuit Courts 8'Comptroller''''''''''''''--'''''''''' i'iv
ListofE|ectedandAppointedOfMda|s---------------------------------- v
OrganizationalChart................................................................................................................................. vi
Financial Section
Independent Auditor's Report................................................................................................................ 1'3
Management's Discussion and Analysis...............................................................................................4-11
Basic Financial Statements:
Statement of Net Position...............................................................................................................1Z'13
Statement of Revenues, Expenses, and Changes in Net Position...................................................14'15
Statementof Cash Flows.................................................................................................................16'17
Notes to Financial Statements............................................................................................................18'45
Required Supplementary Information (Unaudited)
Schedule of Airport's Proportionate Share of Net Pension Liability
Florida Retirement System Pension Plan..........................................................................................46
Schedule of Airport's Contributions to Florida Retirement System Pension Plan...............................47
Schedule of Airports Proportionate Share of Net Pension Liability
Health Insurance Subsidy Program...................................................................................................48
Schedule of Airport's Contributions Health Insurance Subsidy Program.............................................49
Schedule of Changes in the Airport's Total OPEB Liability and Related Ratios....................................50
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based onan
Audit ofFinancial Statements Performed in Accordance with
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G,,I CouRJB C
°A Kevin Madok, CPA
' b ' Clerk of the Circuit Court& Comptroller— Monroe County, Florida
O�RoE Go. J
March 19, 2026
The Honorable Michelle Lincoln
Mayor, Board of County Commissioners
Citizens of Monroe County, Florida
We are pleased to submit the Annual Financial Report for the Key West International Airport Monroe
County, Florida for the fiscal year(FY) ended September 30, 2025.
The Airport's Annual Financial Report is prepared by the Finance Department under the direction of the
Clerk of the Circuit Court&Comptroller(Clerk). Responsibility for both the accuracy of the presented data
and the completeness and fairness of the presentation, including all disclosures, rests with the Clerk as
Chief Financial Officer of Monroe County, Florida (the County). We assert that, to the best of our
knowledge and belief, this financial report is complete and reliable in all material aspects. It is presented
in a format designed to fairly present the financial position and results of operations of the Airport as
measured by the financial activity. All disclosures needed to allow the reader to gain a comprehensive
understanding of the Airport's financial activity have been included.
The County has established a comprehensive internal control framework that is designed both to protect
the County's assets from loss, theft, or misuse and to compile sufficient reliable accounting information
for financial statement preparation in conformity with United States generally accepted accounting
principles (GAAP) established by the Government Accounting Standards Board. Because the cost of
internal controls should not outweigh their benefits, the objective is to provide reasonable rather than
absolute assurance that the financial statements will be free of material misstatement.
Independent Audit
The County's auditor, Purvis Gray and Company, LLP, has issued an unmodified (clean) opinion on the
Airport's financial statements for the year ended September 30, 2025. The report of the independent
auditor is located at the front of the Financial Section in this report.
Management Discussion and Analysis
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management's Discussion and Analysis (MD&A).The MD&A
can be found immediately following the report of the independent auditor in this report and fulfills this
requirement. This Letter of Transmittal is designed to complement the MD&A and should be read in
conjunction with it.
KEY WEST MARATHON PLANTATION KEY
500 Whitehead Street 3117 Overseas Highway 88770 Overseas Highway
Key West, Florida 33040 Marathon, Florida 33050 Plantation Key, Florida 33070
i
Key West International Airport Profile
Basic Information
Located in the City of Key West in Monroe County, Florida,the Key West International Airport has a unique
history due to its compact size and strategic geographic location. Originally called Meacham Field, Pan
American Airways scheduled the Airport's first flight in 1928. During World War II, after the attack on
Pearl Harbor, the Airport was used by the United States Army. In 1953, the City of Key West granted
Monroe County clear title to Meacham Field. Soon thereafter, the Airport officially became the Key West
International Airport.
The Airport sits on approximately 378 acres at an elevation of three feet. It has a single 5,076-foot asphalt
runway. The Airport's passenger terminal complex consists of two buildings, with the original terminal,
built in 1957, on the lower level serving arriving passengers and connecting to the departure gates. The
terminal was expanded in 2009 with a newer building as the upper level that houses ticketing, check-in,
and security checkpoints. In mid-2025, the Airport completed the first phase of the Concourse A and
terminal improvements capital project which modernized the Airport's facility. Phase 2 is scheduled to be
completed in 2026. Parking is available adjacent to the landside terminal in a parking garage The Airport
provides for additional passenger services such as car rental facilities and ground transportation.
Monroe County is the primary population area served by the Airport. Monroe County is the southernmost
county in the United States with only one road, U.S. 1,connecting some of the islands known as the Florida
Keys to the mainland. The City of Key West, the county seat and the County's southernmost city, is
approximately one hundred fifty miles southwest of Miami.The Florida Keys are a popular domestic and
international tourist destination. It offers the largest national maritime sanctuary and the only living coral
barrier reef in the continental United States.
The Airport falls under the governance of the Monroe County Board of County Commissioners (Board).
The Board is comprised of five members, all of whom are elected.The Board acts as a local legislative and
executive body, setting public policy, levying taxes, and funding projects, programs,and the operations of
county departments. The Board appoints a county administrator to carry out the Board's policies and
decisions.The Airport,a county department, is managed by the Executive Director of Airports who reports
directly to the County Administrator. Under the direction of the elected Monroe County Clerk of Circuit
Courts and Comptroller, the Monroe County Finance Department maintains the accounting system for
the Board's operations, including the Airport's operations.
The Airport has a senior management team consisting of the executive director of airports, one assistant
director of airports and four deputy directors. The Airport is a financially self-sustaining enterprise fund
that generates revenues from user fees and lease revenues. The Airport's primary function is to provide
the infrastructure to facilitate air service for the residents and tourists of Monroe County.As of September
30, 2025, the Airport has scheduled service from six domestic carriers (American Airlines, Delta Airlines,
United Airlines, Breeze Airways, JetBlue, and Allegiant) accommodating over 1.46 million passengers in
the 12 months ending September 30, 2025.The Airport is also served by Fed Ex cargo carrier.
Budget
According to Florida Statutes,Chapter 129,a budget shall be prepared, balanced, approved, adopted,and
executed each fiscal year (October 1 through September 30). The Board conducts budget meetings on
departmental budgets. The Airport prepares a tentative budget which is presented to the Board for
approval.
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Formal budgetary integration is employed as a management control device during the year for all fund
types. During the year, the County's Office of Management and Budget acts on intradepartmental cost
center budget changes and interdepartmental cost center budget changes are submitted to the Board as
a Budget Resolution for approval.A budget amendment is required when alterations are made to a fund's
total revenues or expenditures. The Board may adopt the budget amendment after public hearings are
held.
Economic Condition and Outlook
Local Economy
Monroe County's economy is largely dependent on the tourism and hospitality industries. As a result,
reliable economic indicators include airline passenger enplanements/deplanements and bed tax
revenues.Total airline passengers increased 2.8% in the past year.
Long-term Financial Planning
The Airport uses a commercial compensatory rate setting methodology. The cost of airlines operating at
the Airport is represented by cost per enplaned passenger or CPE. The CPE is calculated as total airline
revenues divided by total enplaned passengers.The Airport's CPE for the past five years was:
2025 $ 14.06
2024 $ 12.07
2023 $ 11.62
2022 $ 8.80
2021 $ 8.39
The numbers reflect an average across all carriers. Individual airlines may have a CPE that is higher or
lower than the average based on their individual operating models.
The Airport negotiated with the airlines for a new five-year airline operating agreement, effective
October 1, 2021. The new lease agreement includes provisions for the airlines' use and occupancy of
facilities at the Airport. The Airport is currently under negotiation with the airlines for a second five-year
agreement to begin after the current agreement ends in 2026.
Major Initiatives
In April 2025, the Airport completed Phase 1 of its construction of a new second-level Concourse A
terminal building.The primary goal Concourse A is to enhance passenger experience. Construction began
in 2022, with a projected completion in 2026. When fully completed, Concourse A will be approximately
49,000 square feet and include:
• Glass-enclosed passenger loading bridges;
• Expansion of additional baggage make up areas and devices;
• Airline ramp/office spaces;
• Ramp equipment storage areas;
• Additional baggage claim device;
• Expanded rent-a-car facility and baggage service offices.
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The Concourse A Terminal and Improvements Program also includes improvements to the existing
landside terminal including expanded security checkpoint with an area to support up to four lanes and
added support spaces; and a new extended passenger pedestrian bridge for public access to airport
administration offices.
Relevant Financial Policies
The Board strives to adhere to sound financial management principles to ensure that sufficient funds are
available to maintain a stable financial base for the Airport.To achieve a stable financial base,the County
budgets to maintain a net position sufficient to fund the Airport's cash flow needs,and to provide financial
reserves for unanticipated expenditures or unexpected revenue shortfalls.
In accordance with Section 218.415, Florida Statutes,the County's investment policy, approved in January
2019, establishes investment objectives, maturity and liquidation requirements, portfolio composition,
risk and diversification requirements, and authorized investments. The primary objective of investment
activity is the safety of the principal of funds and to maintain sufficient liquidity to meet anticipated cash
flow needs. A secondary objective is to obtain competitive returns on the investment of the County's
surplus funds.
We would like to express our appreciation to the entire Finance Department, the Board of County
Commissioners and Airport staff for their assistance in the preparation of this report.
We also extend our thanks and appreciation to our independent auditor, Purvis Gray and Company, LLP,
for its outstanding efforts, advice, and assistance.
Sincerely,
Kevin Madok, CPA Pam Radloff, CPA
Clerk of the Circuit Courts &Comptroller Monroe County
Chief Financial Officer Finance Director
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MONROE COUNTY, FLORIDA
BOARD OF COUNTY COMMISSIONERS
Michelle Lincoln, Mayor
District 2
Craig Cates Jim Scholl
District 1 District 3
David Rice Holly Merrill Raschein
District 4 District 5
Christine Hurley,AICP
County Administrator
Kevin Madok, CPA
Clerk of the Circuit Court and
Comptroller
v
Key West International Airport
Organization Chart
Public
I
Board of
[county Commissioners
F---
County
Administrator
Christine Hurley,AICP
I
Executive Dlrecto,r of
Ai rports
Richard Strickland
AssistantDirector of Deputy D D irector, e p uty Di re cto,r, Deputy Director, Deputy Director,Airport
Airports Finance&Admin Caperations&Security Ai rport Al rfi e I d and Facillifies&Can.structilon
Scott Guidry Beth Leto Luis Garay Landside Operations, Tyler aethel[
Cale Hartle
Vi
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P U R V I s G 111 AY
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Board of County Commissioners
Monroe County, Florida
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Key West International Airport (the
Airport), an enterprise fund of Monroe County, Florida (the County), as of and for the year ended
September 30, 2025, and the related notes to the financial statements, which collectively comprise the
Airport's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Airport as of September 30, 2025, and the respective changes in financial position
and cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the County, and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Emphasis of Matter
As discussed in Note 1,the financial statements present only the Airport, an enterprise fund of the County,
and do not purport to, and do not, present fairly the financial position of the County, as of September 30,
2025, the changes in its financial position, or, where applicable, its cash flows for the year then ended in
accordance with accounting principles generally accepted in the United States of America. Our opinion is
not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
CERTIFIECD PUBLIC ACCOUNTANTS
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1
Honorable Mayor and Board of County Commissioners
Monroe County, Florida
INDEPENDENT AUDITOR'S REPORT
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and,
therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
■ Exercise professional judgment and maintain professional skepticism throughout the audit.
■ Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
■ Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Airport's internal control. Accordingly, no such opinion is expressed.
■ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
■ Conclude whether, in our judgment,there are conditions or events, considered in the aggregate,that
raise substantial doubt about the Airport's ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, the schedule of the Airport's proportionate share of the net pension liability for
the Florida Retirement System (FRS) Pension Plan and Health Insurance Subsidy (HIS) Pension Plan, the
schedule of the Airport's contributions for the FRS and HIS plans, and the schedule of changes in the
Airport's total OPEB liability and related ratios, as listed in the table of contents, be presented to
supplement the financial statements. Such information is the responsibility of management and,although
not a part of the financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with GAAS, which consisted of inquiries of
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Honorable Mayor and Board of County Commissioners
Monroe County, Florida
INDEPENDENT AUDITOR'S REPORT
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory section but does not include the basic financial statements and our auditor's
report thereon. Our opinion on the basic financial statements does not cover the other information, and
we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated March 19,2026,
on our consideration of the Airport's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements, and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the Airport's internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
Airport's internal control over financial reporting and compliance.
Purvis Gray
March 19, 2026
Sarasota, Florida
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Management's Discussion and Analysis
Airport Management offers readers this narrative overview and analysis of the financial activities of the
Key West International Airport (Airport)for the fiscal year ended September 30, 2025.
We encourage readers to consider this information in conjunction with additional information furnished
in the letter of transmittal in the Introductory Section of this report and the audited basic financial
statements for an overall view of the Airport's activities.
Financial Highlights and Summary
The Airport's financial highlights for the fiscal year are as follows:
• During FY 2025,the Airport has Airline Operating Agreements with six commercial service airlines
serving the airport.With these agreements ending in FY 2026,the Airport and airlines are meeting
regularly to negotiate the next five-year airline operating agreement.
• During FY 2025,total passengers at the Airport increased 2.8%from the prior fiscal year.American
Airlines, Delta Airlines, JetBlue and Allegiant all experienced passenger volume increases. In
addition, with Silver Airways ceasing operations in FY 2025, Breeze Airways began providing
service to the Airport. As a result, airline rents, landing fees, and airline security fees, increased
$1.7 million in FY 2025 from the prior year, or 19.37%.
• In March 2023, the Airport began assessing Customer Facility Charges (CFC) on the Airport's car
rental customers. In FY 2023 and FY 2024, the Airport collected $792,056 and $2,019,892 in CFCs
respectively. In both fiscal years, CFCs were classified as operating revenue. In FY 2025, the
classification for CFC was changed to capital contributions since the use of these fees is restricted
for the construction of the Airport's future car rental facility. In addition, since CFCs are restricted
in use, the revenue collected and related expenditures should have been classified as restricted
net position in previous fiscal years. CFC revenue will be used to finance the construction of the
Airport's consolidated car rental center.
• After reclassifying CFC fees to capital contributions, FY 2025 total operating revenue increased
10.20% over FY 2024. In addition to the revenue from the airlines increasing 19.37% from the
prior year,the Airport experienced over a 4% increase in parking revenue, other rents, and other
fees during FY 2025.
• In FY 2025, the Airport's net position increased 24.57%.This increase is primarily due to both the
increased revenue from the airlines along with increased capital contributions of over$28 million
to be used for the construction of the Airport's Concourse A terminal expansion project.
Overview of the Financial Statements. The discussion and analysis are intended to serve as an
introduction to the Airport's financial statements.The Airport's financial statements are comprised of the
basic financial statements, which include all revenue and expenses and required supplementary
information, which reflects changes in employer's share of net pension liability and employer's
contributions, along with the schedule of changes in the Airport's other post-employment benefits(OPEB)
liability and related ratios.
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Basic Financial Statements. The Basic Financial Statements are made up of four components:
(I) Statement of Net Position; (2) Statement of Revenues, Expenses, and Changes in Net Position;
(3) Statement of Cash Flows;and (4) Notes to Financial Statements.These are designed to provide readers
with a broad overview of the Airport's finances, in a manner similar to a private sector business. The
financial statements are prepared in accordance with U.S. generally accepted accounting principles as
promulgated by the Government Accounting Standards Board (GASB).
Required Supplementary Information. Required supplementary information consists of the Schedule of
the Airport's Proportionate Share of Net Pension Liability for the Florida Retirement System's (FRS)
Pension Plan and the Health Insurance Subsidy(HIS) programs;the Schedule of the Airport's Contributions
for FRS' Pension Plan and HIS programs, and the Schedule of Changes in the Airport's total OPEB liability
and related ratios.
Airport's Net Position (in thousands)
The following is a condensed summary of Net Position compared to the prior year.
Summary of Nei PosiRcan
September 3,0,20,25 and 20,24
20,25 20,24
C'tirrent and Other Assets, 70,515 $ 85,855
Capra tall'Assets 259,620 194,528
TodtalAsrsels, 330,,135 28,0,383
De-farmed outflows of Resources 1,555 1,590
Current L'uablill'iitlie's 21,427 9,891
Long-Terl"r Lliab ll'iitlie,s 5b,am 59,032
TotallLiabilliittiies 73,332 68,923
CNeffemmed InfEows�ok Resources 13,575 16,554
Nei Posilion
Net Ilnve;stiment liri Calpitall Assets 200,706 165,,932
Restricted" 12,223 8,842
Unme,strlicted* 31,855 21,722
Total Net Rmositipon $ 244,784 $ °196,496
"F°2024Res:t,ricted and Unreet,ritt,ed Nest,Pasit,ion are restated for
re¢:lassifyina.54.9 million efC.FC revenue as re,st,rirted.TMe rest:at:etment:
eNas immaterial and did not require a prior period adjust.rcment.
In FY 2025, construction activities for the Airport increased total assets by $49.75 million, decreased
deferred outflows of resources by $.13 million, increased total liabilities by almost $4.41 million,
decreased deferred inflows of resources by$3.1 million and increased total net position by$48.29 million
as compared to September 30, 2024.
Net investment in capital assets is the largest portion of net position.This represents capital assets net of
accumulated depreciation and outstanding debt used to acquire assets. The net investment in capital
asset balance increased$34.8 million,or 20.96%, in comparison to the prior year.This increase is primarily
due to the on-going construction of the Airport's new second-level Concourse A terminal building.
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The restricted net position increased $3.4 million from FY 2024 after restating FY 2024 restricted net
position for CFC. This balance represents assets that are subject to external restrictions imposed by
creditors, through bond covenants, by grantors, or by law on how they are used. In FY 2025, 60% of the
net position was restricted for PFC and 40%was restricted for CFC. PFC's restricted net position increased
$1.2 million from FY 2024, or 19.42%while CFC's restricted net position increased $2.2 million, or 81.2%.
The increase in CFC restricted net position was primarily due to raising the CFC fee from$6 to$8 in March
2025.
The remaining component of net position is unrestricted net position. Unrestricted net position may be
used to meet the Airport's ongoing obligations. After reclassifying FY 2024 unrestricted net position for
CFC, the Airport's unrestricted net position balance increased $10.1 million, or 46.65% in comparison to
the prior year.This increase is primarily due to a increase of$28 million in capital contributions during FY
2025 for the construction of the Airport's terminal expansion project.
Airport Changes in Net Position (in thousands)
The Statement of Revenues, Expenses, and Changes in Net Position separately describe operating
revenues and operating expenses by logical categories; non-operating revenues made up of interest, PFC
reimbursements, CFC fees, operating grants, and capital contributions. The following table summarizes
the changes in net position for the current and previous fiscal years.
The Airport's total operating and non-operating revenues including capital contributions exceeded total
operating and non-operating expenses resulting in an increase in net position of $48.29 million. A
summary of revenues and expenses follows:
20,25 20,24
�0aa1)'s
Operating Revenues`" $ L7,654 $ L6,020
Operating Expenses 22,386 L8,576
Loss from Operations (4,732) (2,556)
Non-Operating Revenues and Expenses
Operatlin,g Grants 265 5108
Ilnwestrment Ilncainre 2,L6.2 3,820
Other Revenue and Expenst:s (2,275) (L07)
Total Non-Operating Rd.enrenuesa....nd Exxp-ease-s L52 4,22L
Net. ncome/�Lossy Before Capital..
Contribuitdansand Transfers (4,58CR) L,665
Tmtall Capitall CmntrllbLltl0115 and Transfers' 52,868 22,834
Change in Net Position 48,298 24,499
Net.R°asith3n,October I L96,496 L72,097
Restatement-Prlmr Penned Adjl UStrI rent - (°LCO)
Net Position,October'L(Restated) L96,+496 °L7°L,997
Net R"asition,September 30, 244,784 $ °L96,4r96
'Fy 2024 Restriicted and Unrestriicted Net poslitlion are,re-stated for reCllassul`y'i'n,g$4.9 million of CFC
reV&Mle as restriicted.The restateirnei t was iirnnnatenall and diid not requiire a primr perimd adjiustinrent.
Summary of Revenues and Expense Analysis
After reclassifying CFC as capital contributions, operating revenues increased in FY 2025 in comparison to
the prior fiscal year. During the fiscal year, the Airport's operating revenue increased over$1.6 million or
10.20% from FY 2024. Specifically, in FY 2025, the Airport's revenue from airlines increased $1.7 million
while all other operating revenue remained relatively consistent from FY 2024. In total, operating
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revenues in FY 2025 amounted to almost $17.7 million or 23.9% of all business-type activities. Capital
grants increased by$28.1 million in FY 2025 while operating grants decreased $.3 million.
Total operating expenses (excluding transfers to other funds) increased 20.5% from FY 2024 to FY 2025.
The Airport's salaries, wages, and benefits increased almost 22% due to the transfer of 14 full-time
equivalent civilian airport security technician positions from the Monroe County Sheriff's Office to the
Airport. Other expense categories decreased during FY 2025 from the previous fiscal year due to the
Airport's focused efforts on its Concourse A terminal project.
The following charts and tables summarize Net Revenues and Expenses respectively, for FY 2025.
Car Rental ,oe Fiscal Year 2025 Operating Revenue
0.1% Ground Transportation
Parking 4�° Other Fees&Miscellenous
4.8% 1.4%
m9\
Concessions..............................
.,.,.,, ,,,,,,,,,,,,,,,,,-Airline i ne Rents
23.6%
Other Rents
26.4%
�� •,,,,,,,,,,,,,,;Landing Fees
25.2%
Terminal Rents
......Airline Security
0.1%
10.9%
F9' FY F'Y 2025 Increase/
2025 2024 of Total (D,ecrease) Change
Operating Revenues*
Ailirllilne Rents $ 4,160,624 $ 3,053,598 216% 1,107,026 363%
Landiing(Fees 4,448,946 4,226,877 25„2% 222,069 5.3°
Aiirlliiine 5ecu6ty 1,922,451 1,542,715 10..9% 379,736 24..6%
TerrmiinallllRents 6,937 71,432 0.1% (64,495) -913%
Other Rents 4,654,862 4,550,699 26.4% 104,163 2.3%
Concessions 902,296 989,163 .5.1% (86,867) -8.8%
Parking 852,790 799,043 4.8% 53,747 6.7°
Car Rental 23,278 12,416 0.1% 10,862 87„5%
Ground Transportation 417,037 514,707 2.4% (97,670) -19„,G%
Other(Fees 255,291 189,229 1.4% 66,062 34..9%
InitergovernmenitallllRevenue _ 49,419 O.G% (49,419) -100.0%
Miisceulllaneous 8,635 20,416 0.00A (11,78;1( -57„7%
Total Operating Revenues 77,653,147 16,019,714 100.ODA 1,633,433 10„2%
*Iln Fd 2025,CiistOrner F'adll'I'tV Charges(CFQ were recllassffled From Operat'fing REV,ellUeS to CapAall COntIIIDLit'I'0175.
7
Fiscal Year 2025 Operating Expenses
Depreciation '-Salaries&Wages,
Expense, $3,898,272.......... $4,579,304
Capital Outlay, Fringe Benefits,
$2,295,688 $2,163,872
Other Supplies&
Services,
$1,286,825
Contractual Services,
Promotional $5,396,543
Activities,$183,1 5
Risk Management, Repairs and
$289,909 Maintenance, Utilities, $1,069,828
$1,222,443
FY FY FY 2025 Increase/ %
2,02,5 2024 % of Total (Decrease) Change
Operating Expenses,
Salariies & Wages $ 4,579,3,04 $ 3,743,776 20.5% $ 835,528 223%
FHnge Benefits 2,163,872 1,786,046 9.6% 377,826 21.2%
Contractualll Ser-Odes 5,396,543 4,696,380 24.1% 7,00,163 14.9%
Travell and lPer 1D3iiern 37,249 47,916 O..1% (10,667) -223%
Utflilbes 1,069,828 775,081 4.8% 294,747 38.0%
�Rentallls and (Leases 46,308 7,848 0.2% 38,460 490.1%
Repaiirs and Mailintenance 1,222,443 849,815 5.5% 372,628 418%
Rilsk Management 289,909 307,596 1..3% 17,687) -5.8%
PrornoUonall AcUvfties 183,175 112,842 0.8% 7,0,333 623%
Wscelkaneous (Expenses 2,535 392,939 0.0% (390,404) -99..4%
Other Supphes 1,200,733 427,843 5..4% 772,890 180.6%
Capiitall Outlay 2,295,688 1,534,833 10.3% 76,0,855 49..6%
Depreciatucn (Expense 3,898,272 3,893,149 17.4% 5,123 0.1%
Total Operating Expenses 22,385,859 $ 18,576,0,64 -0 0..-9?/. 3,809,795 20.5%
Passenger Facility Charges
In 1992, the Board passed Resolution 357-1992 to allow the Airport to participate in the FAA's PFC
program.The purpose for establishing and implementing the PFC program was to ensure that the Airport's
passengers contribute to a greater degree toward the continued development of the Airport's facilities.
Initially, the FAA allowed the Airport to impose a PFC of $3.00 per eligible enplaned passenger but
increased this amount to $4.50 per eligible enplaned passenger in 2003.
The FAA oversees each public airport's PFC program by requiring each airport to apply to the FAA for
authority to impose a PFC for use on eligible projects. Opened and approved PFC-funded projects in FY
2025 included $1.2 million for the Phase 3B Customs & Border Projection projects; $0.88 million for
Concourse A seating and furniture; and $0.2 million to replace the airport beacon.
8
Customer Facility Charges
In 2022, the Board passed Resolution 520-2022 authorizing the assessment of CFC to the Airport's car
rental customers beginning March 1, 2023. The rental car companies collect the CFC from each Airport
customer and then remits the collected fees to the Airport monthly.These funds are set aside to finance,
design, construct, and operate a consolidated rental car facility at the Airport.
During FY 25, with the Board approving Resolution 541-2024, the CFC fee was increased from $6.00 per
day to $8.00 per day effective March 1, 2025. Since March 2023, the Airport has collected $5.75 million
in CFC revenue and has expended $866,810 towards the construction of its car rental facility. As of
September 30, 2025, the Airport has restricted $4.9 million of its net position for CFC.
In December 2025, the Board approved the Airport proceeding with the full design of a future
Consolidated Rental Car Center(CONRAC) at the Airport.
Capital Assets
Capital assets, net of accumulated depreciation, increased by$65.1 million. Major capital outlay spending
in FY 2025 included $69.0 million bringing the total for the following significant capital projects which
continue to be classified as construction-in-progress as of September 30, 2025:
• Concourse A Terminal Expansion $ 123,525,074
• Commercial Apron Expansion and Mitigation $ 17,813,432
• Custom and Border Protection Facility $ 3,294,672
• Outbound Baggage Handling System $ 2,616,428
• Consolidated Rental Car Center $ 838,549
• Aircraft Overflow Parking $ 8,108,619
• Taxiway Rehab Taxiway A $ 12,329,783
The following table reflects a summary of the Airport's capital assets for FY 2025 and FY 2024.
Capihal'.......Assel s
September 3-13y I20125and 2024
20,25 20,24
Land $ L0,924,L37 $ L0,924,L37
C017st1'UCtff011 fin progress L68,994,68,0 LG6,L95,L72
IlntrastructLdre 63,,400,350 57,482,046
BLOIlldffn,gs 6"1,637,2Q7 61,637,207
Equif pane nt 4,76d1,84L 5,085,465
581TA 14,079 4,970
sutototal) 309,73L,294 24L,328,997
Less:Accumulated Depreciiatiion,/Ai"mmrtifzatifon (50,111,679) (46,80L,13L)
Total $ 259,6L9,615 $ L94,527,866
Additional information on the Airport's capital assets can be found in Note 5 to the financial statements
page 29.
Debt Administration
In September 2022, the Airport issued its Series 2022 Alternative Minimum Tax (AMT) Revenue Bonds
totaling$42,459,929, including unamortized original issue premium to be used to finance and re-finance
the costs associated with the Airport's Concourse A expansion project. The Airport pledged eligible PFC
revenue and its available net revenues for repaying this debt. In addition, the Airport obtained a non-
9
revolving line-of-credit taxable revenue note not to exceed $10 million to be used to acquire, construct,
and equip various capital improvements at the Airport in connection with the terminal expansion project.
At September 301", the Airport had drawn down the full $10 million from the line-of-credit. The Airport
pledged a portion of its future Airport Improvement Program(AIP)Entitlement Grants for fiscal years 2023
and 2024 and all AIP entitlement funds for fiscal years 2026 through 2028, the proceeds of any AIG
entitlement grants awarded in fiscal year 2026, along with any BIL discretionary grants the Airport may
receive between fiscal years 2024 through 2028 for the repayment of the line of credit revenue note. No
2025 AIP entitlement funds were pledged.
In addition, in December 2024, the Airport entered into a $1,519,740 lease-purchase agreement to
acquire an Aircraft Rescue and Firefighting truck.The Airport will use general operating revenue to finance
the purchase of the truck.The Airport received possession of the truck in FY 2026 and will begin repaying
the nine-year lease agreement in September 2026.
Further details about Airport's debt is available in Note 10 to the financial statements page 41.
Airport Activities
The total passenger count for FY 2025 was 1,466,731, an increase of 2.8%from the prior fiscal year.
The following chart exhibits the total passenger market share for the six commercial airlines operating at
the Airport during FY 2025.
FY 2025 Enplanements & Deplanements
Allegiant
11%
JetBlue
�,�
United Airlines ��/� American Airlines
10°/n
/ 47%
Delta Airlines
24%
Pill Silver Airways
Breeze Airways S%
1n/
Airlines serving the Airport as of September 30, 2025,with the designations included:
• American Airlines: Miami(MIA), Philadelphia (PHL), Charlotte(CLT), Dallas(DFW),Chicago (ORD),
New York(LGA), Boston (BOS), and Washington D.C. (DCA);
• Delta Airlines: Atlanta (ATL) and New York (LGA);
• Breeze Airlines: Tampa (TPA), Orlando (MCO), with service to Akron-Canton Airport (CAK), and
Raleigh-Durham (RDU) starting in October 2025;
• Allegiant: St. Pete (PIE),Tampa (TPA), Knoxville (TYS),Asheville (AVL), Indianapolis (IND), Sanford
(SFB), Cincinnati (CVG), and Pittsburgh (PIT);
• United Airlines: Houston (IAH), Newark (EWR),Washington-Dulles (IAD), and Chicago (ORD);
• JetBlue: Boston (BOS).
Other recent changes in the airlines serving the Airport include Silver Airways discontinuing its operations
in FY 2025; and the addition of two new airlines in FY 2026: Avelo Airlines with nonstop flights to
10
Connecticut's Tweed-New Haven Airport(HVN); and Spirit Airlines with nonstop flights to Fort Lauderdale
(FLL).
Airline Rates and Charges
The Airport negotiated airline use agreements with participating airlines(referred to as Signatory Airlines),
with key terms of the agreement approved by the Board. The Agreements commenced on October 1,
2021,with a five-year term, expiring on September 30, 2026.
Rates for fees paid by airlines are adjusted annually in accordance with the methodology set forth in the
agreement. After proposing a schedule of rates for fees and charges for the upcoming fiscal year, the
Airport meets with the Signatory Airlines to agree upon a Final Statement of Rates. The Final Statement
of Rates is calculated based on the Airport's budget for the upcoming fiscal year. No later than May 31"
of each year, the Airport uses the agreed-upon rate and fee schedule to recalculate the rates for the
previous fiscal year using actual financial data to provide the airlines with a final settlement amount either
due to the Airport or the Airline, if any.
Landing fees are calculated based upon the total maximum weight of passenger and cargo aircraft per
1,000 pounds times the landing fee rate.Terminal rents are calculated using a commercial compensatory
method (i.e., rentable square foot divisor). Charges for the leasing of all terminal space will be assessed
on a square-footage basis. In FY 2025, the Signatory Airlines paid the Airport over $10.2 million and
increase of 19.37%from the prior year.
Economic Factors and Budget Highlights
The following factors were considered for the Airport's budget preparation:
• The total adopted FY 2025 operating budget increased almost 28.6%from the previous fiscal year
due to construction of the Airport's new second-level Concourse A terminal building.
• Increases in personnel costs were the result of increased staffing as well as annual cost-of-living
and merit adjustments.
• Budgeted operating expenses remained relatively flat and are on target in FY 2026.
Requests for Information
This financial report is designed to provide a general overview of the Airport's finances for all those with
an interest in its finances. Questions concerning any of the information provided in this report or requests
for additional information should be addressed to the Finance Director, Monroe County Clerk of the
Courts and Comptroller, 500 Whitehead Street, Key West, Florida 33040.
11
BASIC FINANCIAL STATEMENTS
KEY WEST INTERNATIONAL AIRPORT
MONROE COUNTY, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30,2025
Assets
Current Assets:
Cash and Cash Equivalents $ 12,254,879
Investments 21,029,393
Accounts Receivable, Net 2,646,998
Leases Receivable 3,981,424
Due from Other Governmental Units 49,859
Due from Monroe County Sheriff 305,240
Interest Receivable 148,954
Total Current Unrestricted Assets 40,416,747
Non-Current Assets:
Restricted Cash and Cash Equivalents 21,065,432
Leases Receivable Noncurrent 9,033,664
Capital Assets not being Depreciated 179,918,817
Capital Assets, Net of Accumulated
Depreciation and Amortization 79,700,798
Total Non-Current Assets 289,718,711
Total Assets 330,135,458
Deferred Outflows of Resources
Related to Pensions 1,327,325
Related to OPEB 228,300
Total Deferred Outflows of Resources 1,555,625
The notes to the financial statements are an integral part of this statement.
12
KEY WEST INTERNATIONAL AIRPORT
MONROE COUNTY, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30,2025
Liabilities
Current Liabilities:
Accounts Payable $ 5,723,048
Retainage Payable 6,591,272
Accrued Wages and Benefits Payable 362,870
Due to Other Funds 25,066
Due to Other Governmental Units 21,020
Revenue Bonds Payable 605,000
Revenue Notes Payable 7,625,000
Accrued Compensated Absences Payable 267,208
Unearned Revenues 80,249
Lease Liabilities 4,698
Lease Purchase of Aircraft Rescue& Firefighting Truck 80,662
OPEB Liability 41,000
Other Current Liabilities 34
Total Current Liabilities 21,427,127
Non-Current Liabilities:
Accrued Compensated Absences Payable 1,068,831
Arbitrage Rebate Liability 196,087
Lease Purchase of Aircraft Rescue& Firefighting Truck 1,439,078
Revenue Bonds Payable 41,854,929
Revenue Notes Payable 2,375,000
Total OPEB Liability 975,000
Net Pension Liability 3,995,529
Total Non-Current Liabilities 51,904,454
Total Liabilities 73,331,581
Deferred Inflows of Resources
Related to Leases 12,476,717
Related to Pensions 964,461
Related to OPEB 133,900
Total Deferred Inflows of Resources 13,575,078
Net Position
Net Investment in Capital Assets 200,705,868
Restricted for:
Passenger Facility Charges 7,338,983
Customer Facility Charges 4,883,972
Unrestricted 31,855,601
Total Net Position $ 244,784,424
The notes to the financial statements are an integral part of this statement.
13
KEY WEST INTERNATIONAL AIRPORT
MONROE COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2025
Operating Revenues
Airline Rents $ 4,160,624
Landing Fees 4,448,946
Airline Security 1,922,451
Terminal Rents 6,937
Other Rents 4,654,862
Concessions 902,296
Parking 852,790
Car Rental 23,278
Ground Transportation 417,037
Other Fees 255,291
Miscellaneous 8,635
Total Operating Revenues 17,653,147
Operating Expenses
Personnel Services 6,743,176
Contractual Services 5,396,543
Travel and Per Diem 37,249
Utilities 1,069,828
Rentals and Leases 46,308
Repairs and Maintenance 1,222,443
Risk Management 289,909
Promotional Activities 183,175
Miscellaneous Expenses 2,535
Other Supplies 1,200,733
Capital Outlay 2,295,688
Depreciation and Amortization 3,898,272
Total Operating Expenses 22,385,859
Operating Loss (4,732,712)
The notes to the financial statements are an integral part of this statement.
14
KEY WEST INTERNATIONAL AIRPORT
MONROE COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2025
Non-Operating Revenues(Expenses)
Operating Grants 265,434
Investment Income 2,162,003
Insurance Recoveries 241,691
Debt Service Costs (2,531,820)
Gain on Disposition of Assets 15,490
Total Non-Operating Revenues(Expenses) 152,799
Net Income Before Capital Contributions (4,579,913)
Total Capital Contributions and Transfers
Capital Grants and Contributions 47,260,568
Capital Contributions-Passenger Facility Charges 3,145,900
Capital Contributions-Customer Facility Charges 2,938,834
Transfers to Other Funds (477,280)
Total Capital Contributions and Transfers 52,868,022
Change in Net Position 48,288,109
Net Position-October 1 196,496,315
Net Position-September 30 244,784,424
The notes to the financial statements are an integral part of this statement.
15
KEY WEST INTERNATIONAL AIRPORT
MONROE COUNTY, FLORIDA
STATEMENT OF CASH FLOWS
FOR THE FISCALYEAR ENDED SEPTEMBER 30, 2025
Operating Activities
Cash Received for Services $ 15,874,753
Cash Payments to Suppliers for Goods and Services (8,462,066)
Cash Payments for Employee Services (6,316,654)
Cash Received from(Paid to)Other Sources 1,822,248
Other Operating Revenue 33,268
Net Cash Provided By
Operating Activities 2,951,549
Non-Capital Financing Activities
Grants Received 265,434
Insurance Recoveries Received 241,691
Transfers to Other Funds (477,280)
Net Cash Provided by Non-Capital
Financing Activities 29,846
Capital and Related Financing Activities
Proceeds from Capital Grants 53,345,302
Proceeds from Leases and Other Financing Activities 1,722,866
Acquisition of Capital Assets (3,905,311)
Purchase and Construction of Capital Assets (65,091,749)
Proceeds from Issuance of Capital Debt (2,531,820)
Proceeds from Sale of Capital Assets 15,490
Net Cash Used In Capital and
Related Financing Activities (16,445,222)
Investing Activities
Investment Income 2,162,003
Proceeds from Sales and Maturities of Investments 28,136,990
Purchase of Investment Securities (16,744,344)
Net Cash Provided by Investing Activities 13,554,649
Net Change in Cash and Cash Equivalents 90,822
Cash and Cash Equivalents:
October 1 33,229,489
September 30 $ 33,320,311
The notes to the financial statements are an integral part of this statement.
16
KEY WEST INTERNATIONAL AIRPORT
MONROE COUNTY, FLORIDA
STATEMENT OF CASH FLOWS
FOR THE FISCALYEAR ENDED SEPTEMBER 30, 2025
Reconciliation of Operating Loss
to Net Cash Provided By Operating Activities:
Operating Loss $ (4,732,712)
Adjustments to Reconcile Operating Income(Loss)
to Net Cash Provided by(Used in)Operating
Activities:
Depreciation and Amortization 3,898,272
Change in Assets, Liabilities,and Deferrals:
(Increase) Decrease in Accounts Receivable (1,652,029)
(Increase) Decrease in Lease Receivable 3,529,714
(Increase) Decrease in Due from Other Gov't Units 2,139,500
(Increase) Decrease in Due from Constitutional Ofcrs (3,913)
(Increase) Decrease in Interest Receivable 24,633
Increase(Decrease) in Accounts Payable (399,873)
Increase(Decrease) in Retainage Payable 3,682,236
Increase(Decrease) in Accrued Wages/Benefits 96,169
Increase(Decrease) in Other Current Liabilities (18)
Increase(Decrease) in Due to Other Funds (302,934)
Increase(Decrease) in Due to Other Gov't Units (12,601)
Increase(Decrease) in Comp.Absences Payable 723,675
Increase(Decrease) in Leases&SBITA Payable 2,196
Increase(Decrease) in Unearned Revenue (25,024)
Increase(Decrease) in OPEB Liability (67,000)
Increase(Decrease) in Pension Liability (1,004,002)
Increase(Decrease) in Deferred Inflows Leases (3,622,420)
Increase(Decrease)in Deferred Outflows Pensions/OPEB 133,986
Increase(Decrease)in Deferred Inflows Pensions/OPEB 543,694
Total Adjustments 7,684,261
Net Cash Provided By Operating Activities 2,951,549
Non-Cash Investing,Capital,and Financing Activities
Gain on Disposition of Assets $ 15,490
Total Non-Cash Investing,Capital,and Financing Activities 15,490
Cash Reconciliation
Unrestricted $ 12,254,879
Restricted 21,065,432
Total 33,320,311
The notes to the financial statements are an integral part of this statement.
17
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Note 1-Summary of Significant Accounting Policies
The following summary of the more significant accounting policies of the Key West International Airport of
Monroe County, Florida (Airport) is presented to assist the reader in interpreting these financial statements and
should be viewed as an integral part of this report.
Reporting Entity
Monroe County, Florida (County) is a Non-Charter County established as provided by Article VIII Section 1 of the
Florida Constitution and Chapter 125, Florida Statutes.The primary government of the County is comprised of the
Board of County Commissioners (the Board) and five constitutional officers: Clerk of the Circuit Court &
Comptroller(the Clerk), Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector.
The Board, composed of five members, acts as a local legislative and executive body, setting public policy, levying
taxes, and funding projects, programs, and the operations of county departments. The Board appoints a county
administrator to carry out the Board's policies and decisions. The Airport, a county department, is managed by
the Executive Director of Airports who reports directly to the County Administrator. Under the direction of the
Clerk, the Monroe County Finance Department maintains the accounting system for the Board's operations,
including the Airport's operations.
Entity status for financial reporting purposes is governed by Statement No. 14, as amended. The Airport is not
operationally autonomous from the Board. Therefore, under the Governmental Accountings Standards Board
(GASB) guidelines, the Airport is reported as a part of the Board's financial operations. The financial statements
of the Board, when combined with its blended component units and the constitutional officers, constitute the
primary government of Monroe County according to generally accepted accounting principles (GAAP) for
governmental entities.The primary government constitutes the complete GAAP-basis financial reporting entity of
the County, presented in the Monroe County Florida Annual Comprehensive Financial Report.
The financial statements present only the Airport, an enterprise fund of the County, and do not purport to, and
do not, present fairly the financial position of the County as of September 30, 2025, the changes in its financial
position, or where applicable, its cash flows for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Measurement Focus and Basis of Accounting
Basis of accounting refers to when revenues, expenditures, or expenses are recognized and reported in the
financial statements. Basis of accounting relates to timing of the measurements made, regardless of the
measurement focus applied. The Airport's financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are
recognized as revenue as soon as all the eligibility requirements imposed by the grantor have been met.
18
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
The Airport operates as an enterprise fund. The Airport distinguishes operating revenues and expenses from
nonoperating items in its statements of revenues, expenses, and changes in net position. The Airport defines
operating revenues and expenses as revenues earned and expenses incurred from aviation operations and
services provided to customers and tenants. Non-operating revenues and expenses include investment income,
gains/losses on disposal of assets, grants, donations, and settlements.
Cash and Cash Equivalents
The Airport's cash balances are pooled with other cash balances of other Board's funds for investment purposes.
Earnings from such investments are allocated to the respective funds based on applicable cash participation by
each fund. The investment pools are managed such that all participating funds have the ability to deposit and
withdraw cash as if they were demand deposit accounts.Therefore, all balances representing participants' equity
in the investment pools are classified as cash equivalents for purposes of these statements. Investments held
separately from the pools, and which are highly liquid (including restricted assets) with an original or remaining
maturity of 90 days or less, are considered cash equivalents.
Investments
Section 218.415, Florida Statutes, authorizes local governments to invest its funds pursuant to a written
investment plan. The Board's written plan allows investment of surplus funds in the following:
1) U.S. Treasury & Government Guaranteed — U.S. Treasury obligations, and obligations the principal and
interest of which are backed or guaranteed by the full faith and credit of the U.S. Government.
2) Federal Agency/Government Sponsored Enterprise (GSE) — Debt obligations, participations or other
instruments issued or fully guaranteed by any U.S. Federal agency, instrumentality or GSE.
3) Supranationals — U.S. dollar denominated debt obligations of a multilateral organization of governments
where the U.S. is a shareholder and voting member.
4) Corporates—U.S.dollar denominated corporate notes, bonds,or other debt obligations issued or guaranteed
by a domestic corporation,financial institution, non-profit, or other entity.
5) Municipals—Obligations,including both taxable and tax-exempt, issued or guaranteed by any State,territory,
or possession of the U.S., political subdivision, public corporation, authority, agency board, instrumentality
or other unit of local government of any state or territory.
6) Agency Mortgage-Backed Securities (MBS) — MBS are backed by residential, multi-family or commercial
mortgages, that are issued or fully guaranteed as to principal and interest by a U.S. Federal agency or
government sponsored enterprise, including but not limited to pass-throughs, collateralized mortgage
obligations (CMOs) and real estate mortgage investment conduits.
7) Asset-Backed Securities—Asset-backed securities (ABS)whose underlying collateral consists of loans, leases,
or receivables, including but not limited to auto loans/leases, credit card receivables, student loans,
equipment loans/leases, or home-equity loans.
19
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
8) Non-Negotiable Certificate of Deposit and Savings Accounts — Non-negotiable interest-bearing time
certificates of deposit, or savings accounts in banks organized under the laws of the State of Florida or in
national banks organized under the laws of the United States and doing business in Florida, provided that
any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes.
9) Commercial Paper — U.S. dollar denominated commercial paper issued or guaranteed by a domestic
corporation, company, financial institution, trust or other entity, only unsecured debt permitted.
10) Bankers'Acceptances—Bankers' acceptances issued, drawn on, or guaranteed by a U.S. bank or U.S. branch
of a foreign bank.
11) Repurchase Agreements—Repurchase agreements that meet specific requirements listed in Monroe County
Resolution 032-2019.
12) Money Market Funds—Shares in open-end and no-load money market mutual funds, provided such funds
are registered under the Investment Company Act of 1940 and operate in accordance with Rule 2a-7.
13) Intergovernmental Investment Pools— Intergovernmental Investment Pools that are authorized pursuant to
the Florida Interlocal Cooperation Act, as provided in Section 163.01, Florida Statutes.
All investments are stated at fair value or at amortized cost.
Use of Estimates
The presentation of financial statements in conformity with GAAP, as applicable to governmental units, requires
management to make use of estimates that affect the reported amounts in the financial statements.Actual results
could differ from estimates, particularly given the significant social and economic disruptions and uncertainties In
the current environment.
Accounts Receivable
Amounts due from private individuals, organizations, or other governments,which pertain to charges for services
rendered by the Airport, are reported as accounts receivable. Receivables are reviewed periodically to establish
or update the provisions for uncollectible amounts. These provisions are estimated based on an analysis of the
age of the various accounts.
Leases Receivable
The Airport's lease receivable is measured at the present value of lease payments expected to be received during
the lease term. Under the lease agreement, the Airport may receive variable lease payments that are dependent
upon the lessee's revenue. The variable payments are recorded as an inflow of resources in the period the
payment is received.
A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the
initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of
resources is amortized on a straight-line basis over the term of the lease.
20
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Interfund Balances and Activity
Relationship with County Departments — The Airport reimburses the County's General Fund for its portion of
various transactions. Examples of these transactions include providing services, constructing assets, matching
grants, or servicing debt.
For the year ended September 30, 2025, the Airport recorded an expense in the amount of approximately
$477,280 for such transactions.
As of September 30, 2025,the Airport does not have any pending payments due to the County for various services.
For this same period, the Airport has$305,204 due from the County for payment of the excess fees appropriated
to the Sheriff during FY 2025.
Capital Assets
Capital assets of the Airport include property, buildings, equipment, and infrastructure assets (e.g. runways,
terminal buildings, aprons, lighting systems). Constructed or purchased assets are recorded at historical or
estimated historical cost at the time of purchase. Donated assets are recorded at estimated acquisition value at
the date of donation.
The Board requires the Airport to maintain a$5,000 threshold for additions to equipment with an estimated useful
life in excess of two years. Buildings are capitalized when the value is $50,000 or greater. Public domain and
infrastructure assets represent major expenditures for such items as roads, runways, aprons, and drainage
systems. Additions and improvements for infrastructure are capitalized when the cost amounts to$500,000.
Depreciation has been provided using the straight-line method. The estimated useful lives of the various classes
of depreciable capital assets are as follows: buildings — 10 to 50 years; equipment — 5 to 10 years; intangible
assets—10 to 15 years; and infrastructure— 10 to 50 years. Maintenance and repairs are charged to expenses as
incurred.
Management evaluates whether there has been significant unexpected decline in the utility of a capital asset that
could indicate an impairment in the capital asset. If there is an indication that an asset may be impaired, the
Airport follows GASB Statement No. 42,Accounting and Financial Reporting for Impairment of Capital Assets and
for Insurance Recoveries,to determine whether an impairment should be recognized. The Airport concluded that
no impairment occurred for the year ended September 30, 2025.
Lease Assets and Subscription-Based Software
The Airport is the lessee for leases of equipment. When the term for the lease equipment exceeds one year and
has annual payments in excess of$100,000,the Airport has recognized intangible right-to-use lease assets (lease
assets) in the financial statements. Similarly, the Airport recognizes subscription-based information technology
arrangements (SBITA) for the right-to-use information technology software if the total subscription exceeds
$100,000.
The lease assets and SBITA are measured at the start of the lease or subscription as the initial amount of the lease
or subscription liability, adjusted for lease or subscription payments made at or before the lease or subscription
commencement date, plus certain initial direct costs. Subsequently, the lease asset or SBITA is amortized on a
straight-line basis over its useful life.
21
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Key estimates and judgments related to leases and SBITA include how the Airport determines the discount rate it
uses to discount the expected lease or subscription payments to present value, lease term and lease payments.
The Airport uses the interest rate charged by the lessor as the discount rate. When the interest rate is not
provided,the Airport uses the County's estimated incremental borrowing rate as the discount rate for leases.The
lease or subscription term includes the noncancellable period of the lease. Lease payments or subscription
payments included in the measurement of the lease or SBITA liability are composed of fixed payments and a
purchase price option that the Board is reasonably certain to exercise.
The Airport monitors changes in circumstances that would require remeasurement of its leases and SBITA and will
remeasure the related assets and liabilities if certain changes occur that are expected to significantly affect the
amount of the lease or SBITA liability.
Compensated Absences
Board policy permits employees to accumulate a limited amount of annual and sick leave, which will be paid to
employees upon termination of employment. Accumulated annual and sick leave is accrued when earned. An
expense and a liability are recorded as the leave is earned.
Restricted Assets
The use of certain assets is restricted by specific provisions of resolutions and agreements with various parties.
Assets so designated are identified as restricted assets on the balance sheet. When both restricted and
unrestricted resources are available for use, the hierarchy of Airport spending is to use restricted resources first,
followed by unrestricted resources, as they are needed. Restricted assets are classified as noncurrent if they are
for acquisition or construction of capital assets, for liquidation of long-term debt, or are for other than current
operations.
Deferred Inflows of Resources
Deferred inflows of resources represent an acquisition of net position that applies to a future period and,
therefore,will not be recognized as an inflow of resources until that time.The Airport has three items that qualify
for reporting in this category: (1) Pension-related items; (2) Other Post-Employment Benefits; and (3) Leases. The
Airport reports deferred inflows for pension-related and other post-employment benefit items as actuarially
determined.
Deferred Outflows of Resources
Deferred outflows of resources represent a consumption of net position that applies to a future period and
therefore will not be recognized as an outflow of resources (expense) until that future time. The Airport reports
deferred outflows for pension-related and other post-employment benefit items as actuarially determined.
Long-Term Obligations
Long-term obligations are reported as a liability in the Airport's statement of net position. Net pension liabilities
and the total OPEB liability are determined based on actuarial valuations. See Notes 6, 7 and 10 for additional
information.
22
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Net Position
Net position in the Airport's financial statements is classified into three categories:
• Net investment in capital assets — This component of net position consists of capital assets, net of
accumulated depreciation, reduced by the outstanding balances of any bonds, mortgages, notes,or other
borrowings that are attributable to the acquisition, construction,or improvement of those assets. If there
are significant unspent related debt proceeds at year-end,the portion of debt attributable to the unspent
proceeds is not included in the calculation of net investment in capital assets. Rather, that portion of the
debt is included in the same net position component as the unspent proceeds.
• Restricted net position — This component of net position consists of amounts which have external
constraints placed on their use imposed by creditors (such as through debt covenants), grantors,
contributors, or laws or regulations of other governments or constraints imposed by law through
constitutional provisions or enabling legislation.
• Unrestricted net position—This component consists of net position that does not meet the definition of
"net investment in capital assets" or"restricted net position."
Revenue Recognition
Passenger Facility Charge Revenue:The Aviation Safety and Capacity Expansion Act of 1990 (Public Law 101-508,
Title II, Subtitle B) authorized the imposition of a local Passenger Facility Charge(PFC) and use of the resulting PFC
revenues for approved Federal Aviation Administration (FAA) projects. On July 16, 1992, the Board passed
Resolution 357-1992 directing the Airport to apply to the FAA to allow the Airport to collect and expend PFC
revenue. A $4.50 PFC charge is imposed on enplaning passengers for the purpose of generating resources for
airport projects that increase capacity, increase safety, security, or that mitigate noise impacts. PFCs may be
collected one application at a time and must be collected in consecutive order of their approval. The excess
(deficit) of amounts collected over amounts expended in each year is recorded as capital contributions in the
Statement of Revenues, Expenses, and Change in Net Position. Cumulative amounts collected,yet unexpended at
September 30, are reflected as net position restricted for passenger facility projects in the Statement of Net
Position.
Customer Facility Charge Revenue: The Board passed Resolution 520-2022 authorizing the Airport to assess
Customer Facility Charges (CFC) to car rental customers. During FY 2025, with the Board approving Resolution
541-2024, the CFC fee was increased from $6.00 per day to $8.00 per day effective March 1, 2025. These funds
are used to finance, design, construct, and operate a consolidated rental car facility. The excess (deficit) of
amounts collected over amounts expended in each year is recorded as capital contributions in the Statement of
Revenues, Expenses, and Change in Net Position. Cumulative amounts collected, yet unexpended at September
30, are reflected as net position restricted for customer facility charge projects in the Statement of Net Position.
Airfield Landing Fees: Landing fees are principally generated from scheduled passenger and cargo carriers, as well
as non-scheduled commercial aviation, and are based on maximum landed weight of the aircraft. The estimated
landing fee structure is determined annually pursuant to an agreement between the Airport and each of the
Signatory Airlines based on the Certified Gross Weight of the aircraft landed. Landing fees are recognized as
revenue when activity is completed.
23
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Terminal Rents, Airline Rents, Car Rental, Parking, and Concessions: Rental and concession fees are generated
from airlines, parking facilities, food and beverage operations, rental car agencies, advertisers, and other
commercial tenants. Each October 1, the Airport adjusts charges for leases sufficient to recover the cost of
operations (excluding certain debt service payments), maintenance, and debt service related to the airfield and
the space rented by the airlines. The rates and charges may also be adjusted by the Airport if, at any time during
the fiscal year, rates are expected to vary by more than 10%from established rates.
Grant Revenue and Capital Contributions: Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
New Accounting Pronouncements
Effective October 1, 2024,the Board adopted the provisions of GASB Statement No. 101, Compensated Absences.
The objective of this Statement is to better meet the information needs of financial statement users by updating
the recognition and measurement guidance for compensated absences.That objective is achieved by aligning the
recognition and measurement guidance under a unified model and by amending certain previously required
disclosures. Implementation of this standard resulted in no material impact on the Airport's financial statements.
GASB Statement No. 102, Certain Risk Disclosures -The State and local governments face a variety of risks that
could negatively affect the level of service they provide or their ability to meet obligations as they come due.
Although governments are required to disclose information about their exposure to some of those risks, essential
information about other risks that are prevalent among state and local governments is not routinely disclosed
because it is not explicitly required. The objective of this Statement is to provide users of government financial
statements with essential information about risks related to a government's vulnerabilities due to certain
concentrations or constraints.
This Statement defines a concentration as a lack of diversity related to an aspect of a significant inflow of resources
or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal
action of the government's highest level of decision-making authority. Concentrations and constraints may limit
a government's ability to acquire resources or control spending.The requirements of this Statement are effective
for the Airport beginning with its year ending September 30, 2025. Implementation of this Statement has no
impact on the Airport's financial statements.
The following are new accounting pronouncements that have been issued but are not yet effective:
• GASB Statement No. 103, Financial Reporting Model Improvements -The requirements of GASB 103 should
improve the effectiveness of the financial statements in communicating essential information to financial
statement users.The new definition of nonoperating revenues and expenses,for example,will greatly reduce
diversity in practice among governments and enable users to better evaluate the results from operations for
proprietary funds. The replacing of extraordinary items and special items with unusual or infrequent items
should provide more value to stakeholders as the definition of "unusual in nature" and "infrequent in
occurrence" is consistent with GASB 62. Changes to management's discussion and analysis will benefit users
through the avoidance of unnecessary duplication and"boilerplate"discussion and placing a greater emphasis
on providing a detailed analysis of a government's financial activities.The requirements of this Statement are
effective for the Airport beginning with its year ending September 30, 2026.
24
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
• GASB Statement No. 104, Disclosure of Certain Capital Assets - State and local governments are required to
provide detailed information about capital assets in notes to financial statements. Statement No. 34, Basic
Financial Statements—and Management's Discussion and Analysis—for State and Local Governments,
requires certain information regarding capital assets to be presented by major class. The objective of this
Statement is to provide users of government financial statements with essential information about certain
types of capital assets. This Statement also requires additional disclosures for capital assets held for sale. A
capital asset is a capital asset held for sale if: (a)the government has decided to pursue the sale of the capital
asset, and (b) it is probable that the sale will be finalized within one year of the financial statement date.
Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within
the established time frame. This Statement requires that capital assets held for sale be evaluated each
reporting period. The requirements of this Statement are effective for the Airport beginning with its year
ending September 30, 2026.
Management is in the process of determining what impact, if any, implementation of the above statements may
have on the financial statements of the Airport.
Note 2-Cash, Cash Equivalents,and Investments
The Airport's Cash, Cash Equivalents, and Investments on September 30, 2025, consist of the following:
Investment Tvpe Vailue°
Dernand and Time Delaors'idts 12,254,879
FL Class IIImvr=stments 2,863,445
FIlIoridda Fixed Illncoine Tr4ist 2,354r83,0
U5Tr.,easkrr.V Notes nj,03,1098
Ass-tt Backed 'Sec a,i r'idt'iii ess 2107,839
AAgencv Mortgages :1,322,945
Car 1i orate Notes :1,177,236
Total Unresttrict:e^d Cash h Invest rnenttis 33,,284,,272
All funds of the Airport are invested with the Board's cash and investment pool,which consists of the Board's cash
and investments. Except for cash and investments restricted for specific purposes,there are no restrictions on the
Airport's ability to withdraw funds from the Board's pool,so all amounts are considered cash and cash equivalents.
All cash and cash equivalents are stated at fair value, based on the Airport's investment portion of the fair value
of the Board's pooled investments. The Board's investment pool is not rated.
The Board categorizes its fair value measurements within the fair value hierarchy established by GAAP. The
hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are unadjusted
quoted prices in active markets for identical assets. Level 2 inputs are either directly or indirectly observable for
an asset (including quoted prices for similar assets), which may include inputs in markets that are not considered
active. Level 3 inputs securities are significant unobservable inputs.
Securities classified in Level 2 are evaluated prices from the custodian bank's primary external pricing vendors.
The pricing methodology involves the use of evaluation models such as matrix pricing which is based on the
securities' relationship to benchmark quoted prices. Other evaluation models use actual trade data, collateral
attributes, broker bids, new issue pricings and other observable market information.
25
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
FLCLASS is a government investment pool that offers daily liquidity. There are no restrictions or limitations on
withdrawals; however, FLCLASS may, on the occurrence of an event that has a material impact on liquidity or
operations, impose restrictions on withdrawals for up to 48 hours.
Please see Monroe County's Annual Comprehensive Financial Report for further detail on the County's pooled
deposits and investments with their respective credit ratings.
Credit Risk and Concentration of Credit Risk—The Board approved and adopted its Investment Policy (Policy) in
January 2019.The Policy outlines permitted investments, and establishes limitations on portfolio composition, by
both investment type and by issuer, in order to control concentration of credit risk.The following table identifies
the investment requirements and allocation limits on security types, issuers, and maturities as established by the
County.
Under the Policy, the Clerk has the option to further restrict investment percentages from time to time based on
market conditions, risk, and diversification strategies. The percentage allocation requirements for investment
types and issuers are calculated based on the original cost at the time of purchase of each investment.
Portfolio Per Issuer
Investment Maximum Maximum Minimum Ratings Maximum
Type N N Requirement' Maturity
U.S.Treasury 100% 5.50 Years
GNMA 100% 40% N/A (5.50 Years avg.
Other U.S.Government 100� life
Guaranteed (e.g.AID,GTC) for GNMA)
Federal Agency/GSE:
FNMA, FHLMC, 40p3
FHLB, FFCB5 75% N/A 5.5 Years
Federal Agency/GSE 10%
other than those above
Supranationals Highest ST or Highest LT Rating
where U.S. is a shareholder and 25% 10% Categories 5.5 Years
voting member (A-1/P-1,AAA/Aaa,or equivalent)
Highest ST or Highest LT Rating
Corporates 50%2 5% Categories 5.5 Years
(A-1/P-1,AAA/Aaa,or equivalent)
Highest ST or Three Highest
Municipals 25% 5% LT Rating Categories 5.50 Years
(SP-1/MIG 1,A-/A3,or equivalent)
Agency Mortgage-Backed 25% 40°/3 N/A 5.50 Years Avg.
Securities(MBS) Life
Asset-Backed Securities(ABS) 25% 5% Highest ST or LT Rating 5.50 Years Avg.
(A-1+/P-1,AAA/Aaa,or equivalent) Life
Non-Negotiable Collateralized 50% None, if fully None, if fully collateralized. 2 Years
Bank Deposits or Savings Accounts collateralized
o z o Highest ST Rating Category
Commercial Paper(CP) 50/ 5/ 270 Days
(A-1/P-1,or equivalent)
26
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Portfolio Per Issuer
Investment Maximum Maximum Minimum Ratings Maximum
Type N N Requirement' Maturity
Bankers'Acceptances(BAs) 10%2 5% Highest ST Rating Category(A-1/P-1,or equivalent) 180 Days
Highest Fund Quality and Volatility
Intergovernmental Pools (LGIPs) 50% 25% Rating Categories by all NRSROs N/A
who rate the LGIP,
(AAAm/AAAf,S1,or equivalent)
Counterparty(or if the
counterparty is not rated by an
NRSRO,then the counterparty's
Repurchase Agreements o o parent) must be rated in the
(Repo or RP) 40% 20% Highest ST Rating Category 1 Year
(A-1/P-1,or equivalent)
If the counterparty is a Federal
Reserve Bank, no rating is required
Highest Fund Rating by all NRSROs
Money Market Funds(MMFs) 50% 25% who rate the fund N/A
(AAAm/Aaa-mf,or equivalent)
Florida Local Government Surplus o Highest Fund Rating by all NRSROs
Funds Trust Funds 25% N/A who rate the fund N/A
(AAAm/Aaa-mf,or equivalent)
Notes:
'Rating by at least one SEC-registered Nationally Recognized Statistical Rating Organization (NRSRO), unless otherwise
noted.ST=Short-term; LT=Long-term.
2Maximum allocation to all corporate and bank credit instruments is 50%combined.
'Maximum exposure to any one Federal agency, including the combined holdings of Agency debt and Agency MBS, is 40%
4The maturity limit for MBS and ABS is based on the expected average life at time of settlement, measured using
Bloomberg or other industry standard methods.
5Fedral National Mortgage Association (FNMA); Federal Home Loan Mortgage Corporation (FHLMC); Federal Home Loan
Bank or its District banks(FHLB; Federal Farm Credit Bank(FFCB).
At September 30, 2025,there are no investments in any one issuer that exceeds 5%or more of total investments.
Custodial Credit Risk — The Policy requires bank deposits to be secured as provided by Chapter 280, Florida
Statutes.This law requires local governments to deposit funds only in financial institutions designated as qualified
public depositories by the Chief Financial Officer of the State of Florida. Demand and time deposits are fully
insured by the Federal Deposit Insurance Corporation for the first$250,000 at each institution and the remaining
balances are insured 100% by the State of Florida collateral pool, a multiple institution pool with the ability to
assess its members for collateral shortfalls if a member institution fails.
27
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
The Policy requires execution of a third-party custodial safekeeping agreement for all purchased securities and
requires that securities be held in the Board's name. As of September 30, 2025, all of the Airport's investments
are held in a bank's trust department in the Board's name.
Interest Rate Risk—The Policy limits the investment of three months of operating expenditures to 24 months.The
Policy limits the investment of noncurrent operating funds to 5.50 years.
Restricted Cash and Cash Equivalents —The Airport has the following unrestricted and restricted cash and cash
equivalents at September 30, 2025:
Demand
Cash and Cash Equivalents Deposits
Unrestricted Cash and Cash Equivalents $ 12,254,879
Restricted Cash and Cash Equivalents 21,065,432
Total Cash and Cash Equivalents S 33,320,311
Note 3-Restricted Assets
Restricted assets for the Airport includes those assets created by resolutions adopted by the Board for the
Airport's unspent bond proceeds and passenger facility charges.Total restricted assets as of September 30, 2025,
are as follows:
Cash and Cash
Equivalents
Key West Airport Passenger Facility Charges $ 7,338,983
Key West Airport Customer Facility Charges 4,883,972
Key West Airport Cash With Fiscal Agent 1,519,740
Key West Airport Unspent Bond Proceeds 7,322,737
Total Restricted Assets S 21,065,432
Note 4—Leases Receivable
The Airport, acting as lessor, has entered into lease agreements involving airport facilities. Lease receivable
balance at September 30, 2025, is$13,015,088.
Year Ending
September 30, Principal Interest Total
2026 $ 3,981,424 $ 382,020 $ 4,363,444
2027 4,121,909 241,535 4,363,444
2028 1,298,817 130,396 1,429,213
2029 269,260 113,264 382,524
2030 279,754 102,770 382,524
Thereafter 3,063,924 661,125 3,725,049
Total S 13,015.088 S 1,631,110 S 14,646. 998
28
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
In addition, the Airport has entered into lease agreements with various aeronautical users for the use of hangar
space, air cargo space, and aircraft aprons for its business-type activities.These leases are classified as regulated
leases under GASB Statement No. 87, Leases, as they are subject to external regulations by the Federal Aviation
Administration (FAA), which limits lease rates to a reasonable amount as determined by federal guidelines. The
Airport has applied the regulated lease provisions of GASB 87, which do not require recognition of a lease
receivable and deferred inflow of resources for these arrangements. Instead, inflows of resources are recognized
based on the payment provisions of the lease contracts.
As of September 30, 2025, the Airport entered into 9 leases with multiple aeronautical users under exclusive and
preferential user agreements. The agreements range in term from 5 to 30 years, with options to extend subject
to FAA approval and mutual consent.
For FY 2025,the Airport recognized total inflows from regulated leases of$10,207,791 consisting of$1,119,904 in
base lease revenue and $9,087,887 in variable payments. The variable payments relate to payments for utilities,
fuel flow, landing, passenger boarding bridge fees, and security fees. Base lease revenue and variable payments
received for regulated leases are not included in the measurement of a lease receivable under standard GASB 87
provisions. These amounts are reported in the statement of revenues, expenses, and changes in net position and
are included within other rents. The following table presents the undiscounted minimum cash flows expected to
be received from regulated leases as of September 30, 2025, based on the fixed payment provisions in the lease
contracts.
Year Ending
September 30 Amount
2026 $ 2,981,988
2027 281,988
2028 281,988
2029 273,725
2030 248,937
2013-2035 1,244,686
2036-2040 219,948
Total S 5,533,260
Variable payments tied to regulated leases are excluded from the analysis due to their contingent nature and are
recognized as revenue when earned.
29
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Note 5-Capital Assets
Amounts associated with the Airport's capital assets, related accumulated depreciation and depreciation expense
are reported on the Airport's financial statements.
Capital asset activity for the year ended September 30, 2025, is shown in the following table:
Segininiling Additions/ Reductti nsf Ending
_Business-Type Activities- Balance, Transfers Transfers Balance,
6'apl'iitalll Assets Mot Depredated::
Land $ 1L9,92 j37 $ $ L0,92 j37
6onstrtioti1011 un Progress 106,195,172 69,970,660 (7,171,152) 168,,994,680
Tatall 6'api'iitalll Assets float Depredated 71717,119,,309 69,,970,660 (7,171,,152) 17 9,,918,817
L,aptalllAssets Depredated orArortlzed
EL i lldhn,gs 61,,637,2197 61,,637,2197
EgUil)ITent 5,085,465 3D0,047 (624,671) 4,,760,841
11nfrastrt,ictt1 1•e 57,,482,946 5,,918,304 63,,4 ,350
5SIITA 4,,970 9,,109 14,079
Totall Assets Crepxeclated L24,ZD9,688 6�,227,460 (624,67°1) L2°9,812,477
Less AccUinUllated Lepzre,cliatiion/Ainortiizatlion for:
SLiiilldlin,gs (20,317,559) (1,721,384) (22,038,943)
EgLH131"rent (3,702,956) (430,514) 62,9[,"14D (3,512,33,D)
ntrastraacttu•e (22,,779,166) (1,,772,750) (24,,551,916)
5SIITA (L,450) (7,04D) (8,490)
Totall Accum Ullated Depzrec'iiatiiion orArrortivatiion (46,801,131) (3,,931,688) 621,144D (50,111,679)
Tatall6'api'iitalll Assets Crepare�c'iiated/Airnortlized,,Net 77,,408557 2,,295,,772 i3,,531) 79,700,798
B,u,3,iiness-Typ4,e Acti�viitges,,EapitallAssett:s,,Nel 194,,527,866 72,266,432 (7,174,683) 259,,619,615
Depreciation and amortization expense for the year ended September 30, 2025,was$3,917,812.
Note 6-Postemployment Benefits Other Than Pension
General Information about the Other Postemployment Benefits
Plan Description — The Board administers a single-employer defined benefits healthcare plan (Plan).
Section 112.0801, Florida Statutes, requires the County to provide retirees and their eligible dependents with the
option to participate in the Plan if the County provides health insurance to its active employees and their eligible
dependents.The Plan provides medical coverage, prescription drug benefits, and life insurance to both active and
eligible retired employees.The Plan does not issue a publicly available financial report. No assets are accumulated
in a trust that meets the criteria as set forth in GASB Statement No. 75.
The Board may amend the plan design, with changes to the benefits, premiums and/or levels of participant
contribution at any time. In an open session, on at least an annual basis and prior to the annual enrollment
process, the Board approves the rates for the coming calendar year for the retiree and County contributions.
30
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
The Plan includes participants from the Board and each Constitutional Officer.The Board is responsible for funding
all obligations not funded on a pay-as-you-go basis by Constitutional Officers. However,the following disclosures
are based on the Airport's share of the total Other Post-Employment Benefits(OPEB) obligation.
Benefits Provided—Employees who retire as active participants in the Plan and were hired on or after October 1,
2001, may continue to participate in the Plan by paying the monthly premium established annually by the Board.
Employees who retire as active participants in the Plan,were hired before October 1, 2001, have at least ten years
of full-time service with the Board and meet the retirement criteria of the Florida Retirement System (FRS) but
are not eligible for Medicare, may maintain group insurance benefits with the Board following retirement,
provided that the retiring employee pays the retiree contributions based on their years of service with Monroe
County. Pre-Medicare retirees with at least 25 years of service who satisfy the rule of 70 pay the FRS subsidy for
coverage,which is$7.50 per year of service month with a maximum of$225 per month. For those with 10 or more
years of service,the retirees will pay flat amounts based on their respective medical plan election as shown in the
following table.
Pre-Medicare Retiree Contributions
Years of Traditional High Deductible
Service Health Plan Health Plan
10-19 $ 517 $ 433
20-24 259 216
25+ FRS Subsidy 56
Retirees who have met the requirements for early retirement, have not achieved age 60 and whose age and years
of service do not equal 70 (rule of 70) must pay the standard monthly premium until the age criteria or the rule
of 70 is met.At that time,the retiree's cost of participation will be based on the preceding table.Surviving spouses
and dependents of participating retirees may continue in the Plan if eligibility criteria specific to those classes are
met.
An employee who retires as an active participant in the Plan, was hired prior to October 1, 2001, has at least ten
years of full-time service with the County,and meets the retirement criteria of the FRS and is eligible for Medicare
at the time of retirement or becomes eligible for Medicare following retirement, may maintain group health
insurance benefits with the County following retirement, provided the retiring employee contributes the Actuarial
Rate for Medicare retirees as determined by the actuarial firm engaged by the County, less a $250 per month
County subsidy.Alternatively, retirees meeting these criteria may elect to leave the County health plan and receive
a $250 per month payment from the County, payable for the lifetime of the retiree.
Spouses and retirees who do not have at least ten years of service with the County or whose age at retirement
plus years of service do not equal at least 70 must pay the full monthly premium for coverage.
Employees Covered by Benefit Terms— Eligibility for post-employment participation in the Plan is limited to full-
time employees of the County and the Constitutional Officers. At September 30, 2025,there were no terminated
employees entitled to deferred benefits.The membership of the Board's medical plan consisted of:
Active Employees 604
Retirees and Beneficiaries Currently Receiving Benefits 489
Total Memberships 1.093
31
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Contributions — The Board establishes, and may amend, the contribution requirements of Plan members. The
required contribution is based on pay-as-you-go financing requirements, net of member contributions.
Total OPEB Liability
The Airport's total OPEB liability of$1,016,000 was measured as of September 30, 2025, and was determined by
an actuarial evaluation as of September 30, 2025, issued on October 23, 2025.
Actuarial Methods and Assumptions — The valuation, dated October 23, 2025, was prepared using generally
accepted actuarial principles and practices, and relied on census data and medical claims data reported by the
Board as of September 30, 2025.
The total OPEB liability for the Airport in the September 30, 2025, actuarial valuation was determined using the
following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless
otherwise specified:
Actuarial Cost Method Entry Age Normal based on level of percentage of projected salary.
Salary Increase Rate 3.0%per annum
Discount Rate 3.81%per annum (Beginning of Year)
4.90%per annum (End of Year)
Source:Bond Buyer20-Bond GO Index
Marriage Rate The assumed percentage of married participants at retirement is 25%and is based on the
current retired population of the Board.
Spouse Age Spouse dates of birth were provided by the County.Where this information was missing,
male spouses were assumed to be three years older than female spouses.
Medicare Eligibility All current and future retirees were assumed to be eligible for Medicare at age 65.
Amortization Method Experience/Assumptions gains and losses were amortized over a closed period of 9.4
years starting on October 1, 2023, equal to the average remaining service of active and
inactive plan members(who have no future service).
Plan Participation Percentage The assumptions for participation of eligible retirees in the County's postemployment
benefit plan are:
Retirees with 25+Years of Service: 100%
Retirees with 20-24 Years of Service: 75%
Retirees with 10-19 Years of Service: 50%
The actuarial assumptions include an annual health care cost trend rates of 7.75%initially, reduced by decrements
of 0.30%for ten years and 0.10%thereafter to an ultimate rate of 4.0%.The assumptions included a discount rate
tied to the return expected on the funds used to pay the benefits, and assumes for an unfunded plan, that the
benefits continue to be funded on a pay-as-you-go basis.
Mortality rates were based on the Pub-2010 weighted base mortality table, projected generationally using
Scale MP-2021, applied on a gender-specific and job class basis (teacher, safety, or general, as applicable).
32
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Changes in the Total OPEB Liability For the Airport
Total
OPEB Liability
Balance, Be of Year 1,1083,1000
Changes far the Year:,
Service Cast 7 1,&W
linteirest Cast 4 3,1 100
Changes of BenefliitTerrns
Diff&TEIICEi BEteen EXI),ect and ACtL,4', EXJDAETIIEIIOES 5,2100
Changes in A.s5L117nj3ti01'i5 ar Other 1111113LItS (2,4,00)
Benef it Pa yments (18 4,500)
Net Change,in Tcital', OPER Uabflity (67,1000)
Balance, Enid of'Year 1,1016,1000
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate —The following presents the total OPEB
liability of the Airport, as well as what the total OPEB liability for the Airport would be if it were calculated using a
discount rate that is 1-percentage-point lower (3.90%) or 1-percentage-point higher (5.90%) than the current
discount rate:
Current
1%Decrease Discount Rate, 1%Increase,
(3.901%) (5.901%)
Tctal', OPER Ualaflllitv $ 1,12 8,900 1,1016,1000 $ 9210,2 DO
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates—The following presents the
total OPEB liability of the Airport, as well as what the total OPEB liability would be for the Airport if it were
calculated using a healthcare cost trend rates that are 1-percentage-point lower (6.75% decreasing to 3%) or 1-
percentage-point higher(8.75%decreasing to 5%)than the current healthcare cost trend rates:
HealthcaireCiost Trend Rates
1%Decrease, C�u ff r ent Tr e nid 1%[nicrease,
(6.75%Decreasing (7.,7 5%Decr easiing (8.75%Decreasing
to':3.101%) to,4.101%) tia�5.,101'%)
Tctal', OPEB Lial3fli4- 964,900 $ 1,1016,10 1,1[078,500
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2025, the Airport recognized an OPEB expense of$56,300. At September 30,
2025, the Airport reported deferred outflows of resources and deferred inflows of resources related to the OPEB
from the following sources:
Deferred Deferred
OLItf]JOWS o(f linflaws,of
Resources Resources,
Changes of As5L117nj]iti01q5 cir Other 11111-11�3L,ItS 228,300 (133,9W)
33
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
The amounts the Airport's reported as deferred outflows of resources and deferred inflows of resources related
to OPEB will be recognized in OPEB expense as follows:
OPER
For Fiscal Year Ammauntt:
2026 15,7100
21027 17,0
2O28< 17,0
2029 17,0
21030 13,2100
Thereafter 14,500
Note 7-Florida Retirement System Retirement Plans
General Information
The Airport's employees participate in the Florida Retirement System (FRS).As provided by Chapters 121 and 112,
Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the
Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan (Pension
Plan) and the Retiree Health Insurance Subsidy (HIS Plan). Under Section 121.4501, Florida Statutes, the FRS also
provides a defined contribution plan (Investment Plan) alternative to the FRS Pension Plan,which is administered
by the State Board of Administration (SBA). As a general rule membership in the FRS is compulsory for all
employees working in a regularly established position for a state agency, county government, district school
board, state university, community college, or a participating city or special district within the State of Florida.The
FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan
members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida
Administrative Code. Amendments to the law can be made only by an act of the Florida State Legislature.
The State of Florida annually issues a publicly available financial report that includes financial statements and
required supplementary information for the FRS. The latest available report may be obtained by writing to the
State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000,Tallahassee, Florida
32315-9000, or from the Web site:
hops://www.dms.myflorida.com/workforce operations/retirement/publications
Pension Plan
Plan Description — The Pension Plan is a cost-sharing multiple-employer defined benefit pension plan, with a
Deferred Retirement Option Program (DROP)for eligible employees.
Benefits Provided — Benefits under the Pension Plan are computed on the basis of age, average final
compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members
who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are
entitled to a retirement benefit payable monthly for life, equal to 1.6%of their final average compensation based
on the five highest years of salary, for each year of credited service. Vested members with less than 30 years of
34
KEY WEST INTERNATIONAL AIRPORT-MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
service may retire before age 62 and receive reduced retirement benefits. All Airport employees are regular class
member in the FRS.
For Plan members enrolled on or after July 1, 2011,the vesting requirement is extended to eight years of credited
service for all these members and increasing normal retirement to age 65 or 33 years of service regardless of age
for Regular class members. Also, the final average compensation for regular members will be based on the eight
highest years of salary.
As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan before
July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3
per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011,
there is an individually calculated cost-of-living adjustment.The annual cost-of-living adjustment is a proportion
of 3% determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement
multiplied by 3%. Plan members initially enrolled on or after July 1, 2011,will not have a cost-of-living adjustment
after retirement.
In addition to the above benefits, the DROP program allows eligible members to defer receipt of monthly
retirement benefit payments while continuing employment with a FRS employer for a period not to exceed 96
months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest.
There are no required contributions by DROP participants.
Contributions-Effective July 1, 2011,all enrolled members of the FRS,other than DROP participants,are required
to contribute 3% of their salary to the FRS. In addition to member contributions, governmental employers are
required to make contributions to the FRS based on state-wide contribution rates established by the Florida
Legislature.These rates are updated as of July 1 of each year.The employer contribution rates by job class for the
periods from October 1, 2024 through June 30, 2025 and from July 1, 2025 through September 30, 2025,
respectively, were as follows: Regular-13.63% and 14.03%; and DROP participants-21.13% and 22.02%. These
employer contribution rates include 2.00%HIS Plan subsidy for the periods October 1,2024 through June 30, 2025
and 2.00%from July 1, 2025 through September 30, 2025, respectively.
The Airport's contributions, including employee contributions, to the Pension Plan totaled $690,961 for the fiscal
year ended September 30, 2025.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions - The Airport recognizes pension liabilities, pension expense and deferred outflows of
resources and deferred inflows of resources related to pensions on the accrual basis of accounting. At
September 30, 2025,the Airport reported a liability of$3,044,871 for its proportionate share of the Pension Plan's
net pension liability. The net pension liability was measured as of June 30, 2025, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2025.The Board's
proportionate share of the net pension liability was based on the Board's FY 2025 contributions relative to the FY
2025 contributions of all participating members. At June 30, 2025, the Board's proportionate share for all funds
.139732%, which was an increase of .00165% from its proportionate share measured as of June 30, 2024.
Approximately 7.02% of the Board's proportionate share of the net pension liability was allocated to the Airport
based on the Airport's proportionate share of the Board's Pension Plan contributions.
35
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
For the fiscal year ended September 30, 2025,the Airport recognized a pension expense of$276,748. In addition,
these activities reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
FRS Pension
Deferred Deferred
Outflows of Outflows of
Resources Resources
Differences Between Expected and Actual Experience $ 370,981 $ -
Changes of Assumptions 403,336 -
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments - 579,896
Changes in Proportion and Difference Between
Pension Plan Contributions and Proportionate Share
of Contributions 246,770 50,498
Pension Plan Contributions Subsequent to
the Measurement Date 174,262 -
Total S 1,195,349 S 630.394
The Pension Plan's deferred outflows of resources related to the Airport contributions to the Pension Plan
subsequent to the measurement date, totaling $174,262, will be recognized as a reduction of the net pension
liability in the fiscal year ended September 30, 2025. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to the Pension Plan will be recognized in pension expense of the Airport
as follows:
FRS
For Fiscal Year Amount
2026 $ 1,131,080
2027 (200,963)
2028 (300,748)
2029 (238,676)
Total S 390,693
Actuarial Assumptions—The total pension liability in the June 30, 2025 actuarial valuation was determined using
the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.40%
Salary Increases 3.50%,average, including inflation
Investment Rate of Return
Expense, Including Inflation 6.70%, net of pension plan investment
Mortality rates were based on the PUB2010 base table varies by member category and sex, projected
generationally with Scale MP-2021 details in the valuation report.
The actuarial assumptions used in the July 1, 2025,valuation were based on the results of an actuarial experience
study for the period July 1, 2018 through June 30, 2023, and were the assumptions used to determine the total
pension liability as of June 30, 2025.
36
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
The long-term expected rate of return remained at 6.70%, and the active member mortality assumption was
updated.
The long-term expected rate of return on Pension Plan investments was not based on historical returns but instead
is based on a forward-looking capital market economic model. The allocation policy's description of each asset
class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based
on a consistent set of underlying assumptions and includes an adjustment for the inflation assumption.The target
allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are
summarized in the following table:
Compound
Annual Annual
Target Arithmetic (Geometric) Standard
Asset Class Allocation' Return Return Deviation
Cash 1.0% 3.2% 3.2% 1.1%
Fixed Income 29.0% 5.5% 5.4% 4.0%
Global Equity 45.0% 8.5% 6.9% 18.3%
Real Estate(Property) 12.0% 8.4% 7.1% 16.8%
Private Equity 11.0% 12.4°% 8 8°% 28 4°%
Strategic Investments 2.0% 6.5% 6.1°% 8 7°%
Total 100.0%
'Assumed Inflation—Mean 2.4% 1.5%
Discount Rate — The discount rate used to measure the total pension liability was 6.70%. The Pension Plan's
fiduciary net position was projected to be available to make all projected future benefit payments of current active
and inactive employees. Therefore, the discount rate for calculation of the total pension liability is equal to the
long-term expected rate of return.
Sensitivity of the Airport's Proportionate Share of the Net Position Liability to Changes in the Discount Rate—The
following represents the Airport's proportionate share of the net pension liability calculated using the discount
rate of 6.70%, as well as what the proportionate share of the net pension liability would be if it were calculated
using a discount rate that is one percentage point lower (5.70%) or one percentage point higher (7.70%)than the
current rate:
FRS Net Pension Liability
1%Decrease Current Discount 1%Increase
(5.70%) Rate(6.70%) (7.70%)
Airport's Proportionate
Share of the Net Pension
Plan Liability S 5,975,354 S 3,044,871 S 587,848
Pension Plan Fiduciary Net Position — Detailed information regarding the Pension Plan's fiduciary net position is
available in the separately issued FRS Pension Plan and Other State-Administered Systems Annual Comprehensive
Financial Report.
37
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
HIS Plan
Plan Description—The HIS Plan is a cost-sharing multiple-employer defined benefit pension plan established under
Section 112.363, Florida Statutes, and may be amended by the Florida legislature at any time. The benefit is a
monthly payment to assist retirees of state-administered retirement systems in paying their health insurance costs
and is administered by the Florida Department of Management Services, Division of Retirement.
Benefits Provided — For the fiscal year ended September 30, 2025, eligible retirees and beneficiaries received a
monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a
minimum HIS payment of$45 and a maximum HIS payment of$225 per month. To be eligible to receive these
benefits,a retiree under a state-administered retirement system must provide proof of health insurance coverage,
which may include Medicare.
Contributions—The HIS Plan is funded by required contributions from FRS participating employers as set by the
Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members.
For the fiscal year ended September 30, 2025, the HIS contribution for the period October 1, 2024 through
September 30, 2025 was 2.0%. The Airport contributed 100% of its statutorily required contributions for the
current and preceding three years. HIS Plan contributions are deposited in a separate trust fund from which
payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation.
In the event legislative appropriation or available funds fail to provide full subsidy benefits to all participants,
benefits may be reduced or cancelled.
The Airport's contributions to the HIS Plan totaled $90,288 for the fiscal year ended September 30, 2025.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions—The basis of accounting and financial reporting of the Airport's HIS Plan is identical to that
of the Airport's Pension Plan. At September 30, 2025, the Airport reported a liability of $950,658 for its
proportionate share of the Board's HIS Plan's net pension liability. The net pension liability was measured as of
June 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of July 1, 2025. The Board's proportionate share of the net pension liability was based on
the Board's FY 2025 contributions relative to the FY 2025 contributions of all participating members. At June 30,
2025, the Board's proportionate share of all funds was .12824%, which was a increase of .001569% from its
proportionate share measured as of June 30, 2025. Approximately 5.78% of the Board's proportionate share of
the net pension liability was allocated to Airport based on its proportionate share of the Board's HIS Plan
contributions.
For the fiscal year ended September 30, 2025,the Airport's total recognized HIS pension expense was$54,879. In
addition, these activities reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
HIS Pension
Deferred Deferred
Outflows of Outflows of
Resources Resources
Differences Between Expected and Actual Experience $ 7,614 $ 2,022
Changes of Assumptions 11,290 308,512
Net Difference Between Projected and Actual
Earnings on HIS Plan Investments - 1,062
38
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Changes in Proportion and Difference Between
HIS Plan Contributions and Proportionate Share
of Contributions 91,812 22,471
HIS Plan Contributions Subsequent to
the Measurement Date 21,260 -
Total S 131,976 S 334,067
The deferred outflows of resources related to the HIS Plan resulting from the Airport's contributions to the HIS
Plan subsequent to the measurement date,totaling$21,260,will be recognized as a reduction of the net pension
liability in the fiscal year ended September 30, 2026. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to the HIS Plan will be recognized as pension expense by the Airport as
follows:
HIS
For Fiscal Year Amount
2026 $ (49,271)
2027 (58,990)
2028 (49,666)
2029 (39,802)
2030 (25,622)
Total (223.3511
Actuarial Assumptions —The total pension liability in the July 1, 2025, actuarial valuation was determined using
the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.40%
Salary increases 3.50%,average, including inflation
Municipal bond rate 5.20%
Mortality rates were based on the Generational PUB-2010 with Projection Scale MP-2021 tables.
The actuarial assumptions used in the July 1, 2025,valuation were based on the results of an actuarial experience
study for the period July 1, 2018 through June 30, 2023.
The municipal rate used to determine total pension liability increased from 3.93%to 5.20%.
Discount Rate—The discount rate used to measure the total pension liability was 5.20%. In general, the discount
rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term
expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is
essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single
equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer
General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index.
Sensitivity of the Airport's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate—The
following represents the Airport's proportionate share of the net pension liability calculated using the discount
rate of 5.20%, as well as what the proportionate share of the net pension liability would be if it were calculated
39
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
using a discount rate that is 1-percentage point lower (4.20%) or 1-percentage point higher (6.20%) than the
current rate:
HIS Net Pension Liability
1%Decrease Current Discount 1%Increase
(4.20%) Rate(5.20%) (6.20%)
Airport's Proportionate
Share of the Net Pension
Plan Liability S 1,072,021 S 950,658 S 848,874
Pension Plan Fiduciary Net Position — Detailed information regarding the HIS Plan's fiduciary net position is
available in the separately issued FRS Pension Plan and Other State-Administered Systems Annual Comprehensive
Financial Report.
Investment Plan
The SBA administers the defined contribution plan officially titled the FRS Investment Plan. The Investment Plan
is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial
Report.
As provided in Section 121.4501, Florida Statutes,eligible FRS members may elect to participate in the Investment
Plan in lieu of the FRS defined benefit plan.Airport employees participating in DROP are not eligible to participate
in the Investment Plan. Employer and employee contributions, including amounts contributed to individual
member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of
investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established
and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and
employee contribution rates that are based on salary and membership class, as the Pension Plan. Contributions
are directed to individual member accounts, and the individual members allocate contributions and account
balances among various approved investment choices. Costs of administering the Investment Plan, including the
FRS Financial Guidance Program, are funded through an employer contribution of 0.04%and 0.06%of payroll and
by forfeited benefits of plan members for the periods October 1, 2024 through June 30, 2025 and from July 1,
2025 through September 30, 2025, respectively. Allocations to an investment member's accounts during the FY
2025, as established by Section 121.72, Florida Statutes, are based on a percentage of gross compensation, by
membership class. For Regular members this was 11.30%.
For all membership classes, employees are immediately vested in their own contributions and are vested after
one year of service for employer contributions and investment earnings. If an accumulated benefit obligation
for service credit originally earned under the Pension Plan is transferred to the Investment Plan, the member
must have the years of service required for Pension Plan vesting(including the service credit represented by the
transferred funds)to be vested for these funds and the earnings on the funds. Non-vested employer contributions
are placed in a suspense account for up to five years. If the employee returns to FRS-covered employment within
the five-year period,the employee will regain control over their account. If the employee does not return within
the five-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended
September 30, 2025, the information for the amount of forfeitures was unavailable from the SBA; however,
management believes that these amounts, if any,would be immaterial to the Airport.
40
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
After termination and applying to receive benefits, the member may rollover vested funds to another qualified
plan, structure a periodic payment under the Investment Plan, receive a lump sum distribution, leave the funds
invested for future distribution, or any combination of these options. Disability coverage is provided; the
member may either transfer the account balance to the Pension Plan when approved for disability retirement
to receive guaranteed lifetime monthly benefits under the Pension Plan or remain in the Investment Plan and
rely upon that account balance for retirement income.
The Airport's total recognized pension expense for the Investment Plan for the fiscal year ended September 30,
2025,was$189,048.
Note 8-Capital and Other Significant Commitments
For the fiscal year ended September 30, 2025,the Airport had outstanding engineering and construction contracts
in the amount of$28.8 million as detailed below. The major funding sources for the capital projects are grants
awarded by federal and state agencies and other entities along with eligible PFC revenues.
ConCoUrseATermiinall lllrni rovenrents t.7,,09s,r'26
Aircraft Apron and M togatGlon 9 J69,284
Taxiway Extension and f'"I'iihUgatiiion 8," al,35'i
C4istoinrs and Barder Protection F'ac'i ll'iity 2,364,465
Total 28,818,,976
Note 9-Lease and SBITA Obligations
Monroe County updated its lease policy effective October 1, 2024, requiring capitalization of leases in accordance
with GASB Statement No. 87, Leases, only if lease term has a value of$100,000 or more. Because of the updated
policy, the Airport no longer has reportable lease obligations. The Airport leases photocopiers under cancelable
arrangements valued less than $100,000 and, therefore, qualify as other than short-term leases under GASB
Statement No. 87, Leases.
The Monroe County Board of County Commissioners entered into a noncancelable agreement that qualifies as a
SBITA under GASB Statement No. 96, SBITA.The Airport pays for a portion of the related subscription payments.
Therefore, that portion of the SBITA paid for by the Airport has been recorded at the present value of the future
minimum SBITA payments as of the date of its inception.
As of September 30, 2025, the Airport's share of future principal payment for this SBITA is the final payment of
$4,698 with interest payment of$42 during FY 2026.
41
KEY WEST INTERNATIONAL AIRPORT—MONROECOUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 8EPTEK8BER 30\2026
Note 10- Long-Term Debt
Long-term debt activity for the year ended September 30, 2025, is as follows:
current Parfiom
meginnii,g End i'"g of Long-Term
Balances Additions Payments Balances uhabimnes
neVcnuraanu, $ 42'459'92e $ $ 42'459,92e $ *ns'omm
neenuemote �G,mmo000 �ommowm r'eus^oom
Lease purchascof AmppTruck 1'519,74n x'519,74-0 80,662
Accrued compensateuAbsences* 92x'z89 *55'553 40,703 x^336'039 zsr^zmu
au/TAuauflnocs 2'502 9,109 6,9z3 4,e98 4,698
opsuualn/hty x,083'000 119,900 xos,qmo x,016,000 *1/000
pcns/onuab�|�ty rmaanuHs 4,999,531 i,W4,002 3995529
Total Long-Term Debt
°r19rbegmimng ba|anccOfcaMprnsatea absence obhgauon was restated mth the octoberz'zoz*/mp|rmrntaoonofmAsu Statement Na.xox
The Airport has an outstanding revenue bonds totaling $42,459,929, including unamortized original issue
premium, at fiscal year'end. The Series ZUZZ (AIVIT) revenue bond was issued to address the Airport's need for
financing is Concourse Expansion Project. The Airport pledged its net revenues and eligible PFC revenues in
accordance with the PFC Regulation and its PFC collection authority. In addition, the Airport also has taxable
revenue note from direct borrowings for a line of credit not to exceed$10 million to also address financing needs
of its Concourse A Expansion Project. At September3U, 2025, the Airport has drawn the full amount available of
$1U million from the line ofcredit.
In December 2024, the Airport entered into a lease-purchase agreement to acquire an aircraft rescue and
firefighting (ARFF)truck totaling$1,519,740.
The following summary reflects the Airport's revenue bond and revenue note as of September 30, 2025:
Revenue Bonds:
Key West International Airport Revenue Bonds,Series 2022 $ 41,340,000
UnamortizedOrigina| Issue Premium,Series 2022 1,119,929
Total Revenue Bonds 42,459,929
Revenue Bonds:
PNC Line of Credit Taxable Master Airport Revenue Notes 10,000,000
Lease-Purchase of ARFF Truck 1,519,740
Total Airport Debt 53,979,669
42
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Series 2022 Monroe County, Florida Key West International Airport (Airport) Revenue Bonds
• Final maturity: October 1, 2052.
• Principal payment date: October 1 with first principal payment due October 1, 2025.
• Interest payment dates: April 1 and October 1, with the first payment date being April 1, 2023.
• Interest rate: 5.000% for maturities from October 1, 2025, through October 1, 2042; 5.250% interest rate
apples to term bonds due on October 1, 2047; 5.000%applies to term bonds due on October 1, 2052.
• Capitalized Interest Fund was established in the amount of$4,275,138, with one installment of$1,138,488
paid on April 1, 2023, and three more installments of$1,045,550 to be paid over each of the next three six-
month periods.
• Amount outstanding at September 30, 2025: $41,340,000.
• Reserve requirement: Reserve Fund was established in the initial amount of$2,573,827.
• Revenue pledged: Eligible PFC Revenues in accordance with the PFC regulation.
• Purpose: Provide Key West Airport funding for the costs related to the Concourse A expansion project.
• Call provisions: Bonds maturing on or after October 1, 2033, may be redeemed at par at the option of the
Board on or after October 1, 2032.
PNC Line of Credit for Monroe County, Florida Taxable Master Airport Revenue Note Series 2022
• Final maturity:July 1, 2027
• Principal payment date: Principal of all draws are due and payable on the final maturity date. Minimum draw
amounts are$100,000 and must be in denomination of$10,000. Principal amount shall be in an amount equal
to not exceeding$10,000,000; Provided, however,the aggregate principal amount of draws that may be made
against the Tax-exempt Master Note may not exceed $8,660,000, unless and until the public approval
requirements are met to the Noteholder's satisfaction with respect to the issuance by the County of tax-
exempt debt in excess thereof for the Project.
• Amount outstanding at September 30, 2025: $10,000,000.
• Interest payment dates: Payable quarterly in arrears on the first business day of January, April, July, and
October of each year.
• Non-Use Fee: Beginning January 1, 2023,when the total principal drawn is less than 100%of$10 million, Key
West International Airport will be charged a non-use fee of 0.12% annual of the principal amount not yet
drawn. Non-use fees paid in FY 2025 totaled $0.0.
• Interest rate: The tax-exempt rate equals 79% of Term Secured Overnight Financing Rate (SOFR) plus 0.73%
per annum. The taxable rate equals Term SOFR pls 0.79% per annum.
• Reserve requirement: None
• Revenue pledged: A Senior Lien will be placed on all Airport Improvement Program (AIP) Entitlement Grants
for Fiscal Years 2026, 2027, and 2028; Federal Fiscal Year 2026 Bipartisan Infrastructure Law(BIL) Entitlement
Grant; and any BIL Discretionary Grant received in fiscal years 2024, 2025, 2026, 2027, and 2028.The Airport
cannot use these grant proceeds for any other purpose than to repay the PNC Line of Credit unless they obtain
prior written consent from PNC. If there is not sufficient grant receipts to pay quarterly interest payments or
to repay principal balances due,the expectation is that the Board will pay PNC from the Airport's net revenues
or eligible PFC. However, paying PNC Line of Credit with net revenues or PFC is subordinate to repaying the
Airport's revenue bonds.
• Purpose: Acquire, construct and equip various capital improvements at the Airport in connection with the
Concourse A Expansion.
43
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Lease-Purchase of Aircraft Rescue and Firefighting Truck
• Final maturity: September 2034
• Principal payment date: Each September 25th with first principal payment due September 25, 2026.
• Amount outstanding at September 30, 2025: $1,519,740.
• Interest payment dates: Paid annually each September 25th.
• Interest rate: 5.19%.
• Reserve requirement: None.
• Revenue pledged: None.
• Purpose:To acquire an aircraft rescue and firefighting truck.
Debt Service Funding Requirements —The total annual debt service requirements for the Airport's Series 2022
(AMT) Revenue Bonds, PNC Line of Credit Taxable Master Airport Revenue Note, and the lease-purchase of the
ARRF truck outstanding at September 30, 2025, are as follows:
Key West:lnttercmnatnanal A4irpuorttActt,ivitties
Prindpail Interest TottaI
2026 8,K0,662 2,719,716 11,036,37a
2027 3,664,662 2,243,592 5,248 254
2028 662,,435 2,6991,,9194 2,,753,,629
2029 695,612 2,657,,142 2,,752,,754
2030 L,649,213 2,613,,416 3,,662,,629
2631-2635 5,,877,256 9,,201,582 25„678,,738
2636-2646 6,495,000 7,655,375 1 ,1050,375
264L-2045 8,290,1000 5,8,07,223 24,697,223
2646-2650 10,680,66E 3,361,663 24,641,663
265L-2055 7,,795,,66E 597,,L25 8.,392J25
Totalll Reqkr'iireri Debt 5er..Oce 52,,859,74�6 37,747,418 „607,158
Unarnort'ized Or'iilg4na111 ISSUE'
Prern'iiikl m on Sr''iii,Es 2022 3onds 2,11€9,92 9
Tattail Business DeM Service 53,979,669
Note 11-Risk Management
The Airport is exposed to various risks of loss related to tort;theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. The Airport participates in the coverage provided by
the Board for Workers' Compensation, Group Insurance, and Risk Management Internal Service Funds.
Under these programs, Workers' Compensation provides $500,000 coverage per claim for regular employees.
Workers' Compensation claims in excess of the self-insured coverage are covered by an excess insurance policy.
Risk Management has a$5,000,000 excess insurance policy for general liability claims with a$200,000 self-insured
retention, and building property damage is covered for the actual value of the building with a deductible of
$50,000. Deductibles for windstorm and flood vary by location. Monroe County purchases commercial insurance
for claims in excess of coverage provided by the funds and for all other risks of loss. Settled claims have not
exceeded this commercial coverage in any of the past three years.
The Airport makes payments to the County's Workers' Compensation, Group Insurance and Risk Management
Funds based on estimates of the amounts needed to pay prior and current year claims.
44
KEY WEST INTERNATIONAL AIRPORT—MONROE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30,2025
Note 12- Litigation and Claims
The Airport is a party from time to time in various lawsuits and other claims incidental to the ordinary course of
its operation, some of which are covered by the Board's self-insurance program. While the results of litigation
cannot be predicted with certainty, management believes the final outcome of such litigation will not have a
material adverse effect on the Airport's financial position.
Note 13-Commitments and Contingencies
Grant Programs—The Airport participates in a number of federal and state grant programs that are governed by
various rules and regulations of the grantor agencies. Amounts received or receivable from grant agencies are
subject to financial and compliance audits by the grantors or their representatives. Any disallowed claims,
including amounts already collected, may constitute a liability of the applicable funds.The amount, if any, which
may be disallowed by the grantor,cannot be determined at this time,although the Airport expects such amounts,
if any, to be immaterial.
Note 14-Subsequent Event
Management has evaluated subsequent events through March 19, 2026, in connection with the preparation of
these financial statements, which is the date the financial statements were available to be issued.
45
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U R V I s G 111 AY
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS
Honorable Mayor and Board of County Commissioners
Monroe County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the Key West
International Airport (the Airport), an enterprise fund of Monroe County, Florida, as of and for the year
ended September 30, 2025, and the related notes to the financial statements,which collectively comprise
the Airport's basic financial statements, and have issued our report thereon dated March 19, 2026.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Airport's internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the Airport's internal control.
Accordingly, we do not express an opinion on the effectiveness of the Airport's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. Amaterial weakness is a deficiency,or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and,therefore, material weaknesses or significant deficiencies may
exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Airport's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, non-compliance with which could have a direct and material effect on
the financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of non-compliance or other matters that are required to be reported under
Government Auditing Standards.
CERTIFIECD PUBLIC ACCOUNTANTS
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51
Honorable Mayor and Board of County Commissioners
Monroe County, Florida
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Airport's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Airport's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
March 19, 2026
Sarasota, Florida
52
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