FY ‘11 Port Everglades Proposed Budget

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Vision Statement

Economic Opportunities are EndlessBoard of County Commission Goal Statement Number 3:

Sustain the economic viability of Port Everglades

2Cruise Terminal 18

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Port Everglades Mission

Key Outcomes FY ‘08 and FY ‘09

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FY ’08 FY ‘09

Value of economic activity statewide $17.9 billion $13.9 billion

Direct regional jobs 11,188 9,948 -Port Everglades Department (including SE&C) 249 246

-BSO/EMS/Fire Rescue 222 222

Total Florida jobs impacted by Port 185,000 143,185

Key Comparative PerformanceData FY ‘08 and FY ‘09

MeasurePort

Everglades Jacksonville Miami Tampa Savannah Charleston L.A.

TEU’s (containers) FY ‘09 796,160 754,352 807,069 48,788 2,404,965 1,368,000 7,261,539

FY ‘08 985,095 697,494 828,349 44,496 2,687,584 1,695,000 8,081,361

National Container Ranking FY ‘09 12 15 11 31 4 9 1

FY ‘08 11 19 12 30 4 8 1

Tons of Cargo (millions) FY ‘09 21.3 7.3 6.8 37.8 22.1 9.2 142.8

F Y ‘08 23.7 24.5 7.4 42.6 25.4 12.8 170.0

# of Cruise Passengers FY ‘09 2,836,954 185,434 4,110,100 802,937 0 0 1,191,449

F Y ‘08 2,636,711 152,411 4,137,231 767,760 0 116,707 1,195,897

World Cruise Ranking FY ‘08 3 21 1 15 - 26 5

5

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MeasurePort

Everglades Jacksonville Miami Tampa Savannah

Charleston

L.A.

Operating Revenues (in millions) FY ‘09

$109.6 $47.3 $100.1 $39.8 $227.8 $136.2 $402.2

FY ‘08 117.4 42.3 94.7 39.2 236.9 165.1 426.3

Operating Expenses (in millions) FY ’09

73.2 54.8 69.0 22.9 168.5 80.9 254.1

FY ‘08 73.1 46.6 61.6 22.5 171.5 81.9 221.8

Change in Net Assets (in millions) FY ‘09

21.1 7.8 4.2 13.3 64.1 28.9 46.0

FY ‘08 21.9 8.4 1.7 26.9 85.1 77.0 139.2

Debt Service Coverage FY ‘09

1.76 1.84 1.35 1.51 N/A 6.43 2.8

FY ‘08 1.85 3.48 1.50 1.60 N/A 10.24 4.0

Ad Valorem Tax Support or other shared revenue from primary government (in millions) FY ‘09

- $2.7 - $15.7 - - -

FY ‘08 - 2.3 - 16.8 - - -

Revenue Bonds - Moody’s Rating FY ‘09

A2 A2 A2 A2 N/A A1 Aa2

FY ‘08 A2 A2 A2 A2 N/A A1 Aa2

Key Comparative PerformanceData FY ‘08 and FY ‘09

FY ‘11 Budgeted Revenues

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Operating Revenues ($6.8M over FY ‘10 projected) $ 119.1

Interest Income 3.9

State Grants 3.3

Less Five Percent ( 6.3)

Transfer from Convention Center (Bypass Road) 1.0

Fund Balance 81.4

Total $ 202.4

(in millions)

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Budgeted, Projected & Historical Petroleum Cargo ActivityPetroleum in Barrels (in Thousands) FY 2002-2011

Projected

Budget

9

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

TEUs

Budgeted, Projected & Historical TEU ActivityFiscal Years 2002-2011

Projected

Budget

10

Budgeted, Projected & Historical Multi-Day Passenger Activity Fiscal Years 2002-2011

Projected

Budget

11

2006 2010 +/-

Miami 1,8600,00 2,050,000 +190,000

Port Everglades 1,250,000 1,720,000 +470,000

Port Canaveral 1,370,000 1,490,000 +110,000

Tampa 910,000 800,000 -110,000

Puerto Rico 510,000 480,000 -30,000

Galveston 620,000 430,000 -190,000

New York City NA 210,000

Cruise Homeport Trends

Actual FY ‘10 and Budgeted FY ’11Tariff Increases

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Revenue Source: FY ‘10 FY ‘11

Petroleum Wharfage 9.9% 3.5%

Fire Protection Service Fee 3.0 -

Petroleum Dockage 3.0 3.5

Passenger Wharfage 3.5 3.5

Cruise Dockage 3.5 3.5

Port User Fee - Cruise 3.5 3.5

*Container Wharfage - 2.5

*Cargo Wharfage (Annual Minimum Payments) - 2.5

*Container Dockage - 2.5

Bulk Wharfage - 3.5

Bulk Dockage - 3.5

Neobulk Wharfage - 3.5

Neobulk Dockage - 3.5

Other Dockage - 3.5

* Limited to change in CPI – Estimated at 2.5%

Actual FY ‘10 and Budgeted FY ’11 Tariff Increases (continued)

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Revenue Source: FY ‘10 FY ‘11

Harbormaster 3.0% 3.5%

Linehandlers 3.0 3.5

Grid Rentals 3.0 25.0

Storage & Demurrage 3.0 3.5

Container Crane Rental 3.0 3.5

Fresh Water 20.0 3.5

Wastewater Disposal – Sewage 3.0 3.5

Reefer Electricity 3.0 3.5

Reimbursement – Electricity & Labor (Terminal Use Overtime) 3.0 3.5

Truck and Rail Petroleum - 3.5

Late Manifest Penalties - 3.5

Security Fees – Petroleum, Container, All Others - -

Parking Fees - -

FY ‘11 Budget Appropriations

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(in millions)

Operating Budget (FY ‘10 to FY ‘11 Down $4.5M; 5.3%} $ 78.1

Capital Budget 68.2

Debt Service Budget Includes Reserves of $10.3M

42.7

Reserves 13.4

Total $202.4

Budget FY ‘11 Operating Expense Budget Reductions From FY ‘10 Budget

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(in thousands)

Reduction to BSO (Security Guards for 9 months) $(1,576)

Reduction in Purchased Insurance (1,048)

Replacement of Maintenance with Capital Renewal (1,013)

Reduction in Electricity ( 575)

Reduction in Contractual Services ( 205)

Reduction in Advertising ( 203)

Overtime Reduction Program ( 132)

$(4,752)

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FY '07Actual

FY '08Actual

FY '09Actual

FY '10Projected

FY '11Budget

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

1,590,917 1,634,859 1,132,446 1,064,670 982,220

13,055,376 13,074,315

13,141,997

12,420,110 12,525,280

Straight Time Salaries and Wages

Overtime

$14,646,294 $14,709,174$14,274,443

$13,484,780

Notes:Overtime as a per-centage of payroll 10.9% 7.9%7.9%11.1%

$13,507,500

7.3%

Overtime Reduction

Historical Position Count

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Funded Authorized

FY 07 Position Count 229 229

Unfunded Positions -6 ___

FY 08 Position Count 223 229

Deleted Positions -3 -3

Unfunded Positions -2 ___

FY 09 Position Count 218 226

Unfunded Positions -9 ___

FY 10 Position Count 209 226

Deleted Positions -2 -2

FY 11 Position Count 207 224

% Reduction in Workforce (FY07 to FY11) : 10.04% 5 Deleted and 17 Unfunded

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BSO Security Expenses to Total Operating Budget

FY ‘07 Actual

FY ‘08Actual

FY ‘09Actual

FY ‘10 Projected

FY ‘11Budget

BSO Security Cost $16,342,057

$16,971,426

$17,440,152

$18,864,840

$14,864,840

Fire Rescue 5,534,100

5,801,572

6,138,469

6,506,780

6,506,780

EMS 1,341,690

1,403,928

1,534,617

1,626,700

1,626,700

Total BSO $23,217,847

$24,176,926

$25,113,238

$26,998,320

$22,998,320

Contracted Security Services(9 months)

- - - -

2,500,000

Total Port Operating $72,111,017

$73,093,351

$73,235,677

$80,015,390

$80,788,110

% of only BSO to Port Operating

32% 33% 34% 34% 28%

FY ‘11 Key Proposed Capital Projects

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(in millions)

ProjectPreviously

FundedBudget

FY ‘11Northport Petroleum Terminal (3P) $37.5

Carnival Terminals – 2, 19 ,21, & 26 $ 3.6 29.6

McIntosh Loop Road 7.9 4.5

Spangler Boulevard Bypass Road (Phase I) 2.0

Land Mitigation Turning Notch 20.0

Berth 33 Reconstruction 5.7

FY 12-15 Key Proposed Capital Projects within approved Port Master Plan Components*

(in millions)

Portwide Dredging $111.0

Cruise Terminal 4 Parking Garage $ 38.0 Cruise Terminal 4 Expansion $ 13.0 Slip 2 Expansion $ 31.5 $

82.5 Aggregate Terminal & Rail Yard Facility (3P) $

55.0 Intermodal Container Transfer Facility Phase I (3P) $

50.0 Intermodal Container Transfer Facility Southport Rail Spur

$ 10.5 Northport Petroleum Terminal (3P; FY11-$37.5M + FY12-$37.5M=$75M)

$ 37.5 Midport Parking Garage Construction $

26.3 Southport Turning Notch Expansion, Phase I $

21.7 Mitigation for Westlake Improvements (for Southport Turning Notch Phase I) $

12.0 Container Crane $

14.0 Spangler Boulevard Bypass Road Phase II (Previously budgeted $18M) $

11.0 Intermodal Container Transfer Facility Southport Rail Spur

$ 10.5

* Dependent on grants and public private partnership (3P) agreements

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Comparative Revenue, Expense and Net Income 2002-2011

21

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

110,000,000

120,000,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Operating Revenue *Operating ExpenseOperating Income before depreciation and amortizationNet Income

* Includes one time lease settlements: FY ’04 -$8,435,862 ; FY ’08-$3,800,000

Projected Budget

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Statement of Revenues, Expenses and Changes in Fund Net Assets For the Years Ended September 30, 2009 and 2008 (Actual)

And Projected for the Year Ended September 30, 2010

2010 2009 2008

Operating Revenues $ 112,367,500 $ 109,669,054 $ 117,441,067

Less Operating Expenses (80,015,390) (73,235,677) (73,093,351)

Less Depreciation (24,378,200) (20,250,286) (20,022,400)

Income from Operations 7,973,910 16,183,091 24,325,316

Non-operating Revenues (Expenses) (7,428,790) (5,736,402) (6,651,540)

Net Income before Capital Contributions 545,120 10,446,689 17,673,776

Capital Contributions 8,302,812 10,628,396 4,204,155

Change in Net Assets 8,847,932 21,075,085 21,877,931

Total Net Assets, Beginning of Period 479,102,719 458,027,634 436,149,703

Total Net Assets, End of Period $ 487,950,651 $ 479,102,719 $ 458,027,634