The Board Bud­get Work­shop of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at approx­i­mate­ly 9:00 a.m., Sep­tem­ber 1, 2021 by Chair Glen McDonald. 

All the Board mem­bers were present with the excep­tion of Mr. James Johnson. 

FY22 Oper­at­ing & Cap­i­tal Budget

The draft FY22 Oper­at­ing & Cap­i­tal Bud­get was pro­vid­ed to the Board for their review in prepa­ra­tion for this dis­cus­sion pri­or to the Workshop.

Mr. Park­er McClel­lan and Mrs. Dar­lene Gor­don reviewed the pro­ject­ed oper­at­ing rev­enues and expens­es for the cur­rent FY21 Bud­get and for the pro­posed FY22 Budget.

Oper­at­ing rev­enues include funds that are gen­er­at­ed by the users of the Air­port and include air­line fees and charges, con­ces­sions, pub­lic park­ing, car rentals, gen­er­al avi­a­tion, space rentals and build­ing rentals. Oper­at­ing expens­es include salaries and ben­e­fits, pro­fes­sion­al ser­vices, sup­plies and mate­ri­als, util­i­ties, insur­ance, and oth­er expens­es nec­es­sary to main­tain the Airport’s operations. 

The total oper­at­ing rev­enues in FY21 are pro­ject­ed to be $17,423,088, which equates to $5,328,806, or 44.1%, over bud­get. The major­i­ty of the increase in total rev­enue is due to increased land­ing fees as a result of larg­er air­craft and increased fre­quen­cy, and high­er pas­sen­ger traf­fic than expect­ed, which results in high­er ter­mi­nal con­ces­sions fees, rental car con­ces­sion fees and park­ing rev­enues. Over­all, FY22 bud­get­ed oper­at­ing rev­enues are decreased by $2,194,297, or 12.6%, from the FY21 pro­ject­ed rev­enues. When com­par­ing rev­enues of FY22 Bud­get to FY21 Bud­get, there is an increase of $3,134,509, or 25.9%.

The FY21 pro­ject­ed oper­at­ing expens­es are $469,652, or 5.1%, less than bud­get. The oper­at­ing expens­es in the FY22 Bud­get rep­re­sent an increase of $1,773,058, or 20.3%, over the pro­ject­ed FY21 oper­at­ing expens­es, with the largest cost increase in per­son­nel costs, park­ing lot man­age­ment and jan­i­to­r­i­al costs being the largest fac­tors in the increase. The FY22 Bud­get reflects an amount which will pro­vide for the effi­cient oper­a­tion of the Air­port, and will pro­vide the nec­es­sary resources to meet the estab­lished goals for the upcom­ing year. When com­par­ing FY22 Bud­get to FY21 Bud­get, there is an increase of $1,303,407, or 14.2%, with the largest cost increase in personnel.

Pas­sen­ger vol­umes for FY21 are antic­i­pat­ed to be up approx­i­mate­ly 66.3% over FY20. Bud­get­ed pas­sen­gers for FY22 total 1,341,852, which reflects an increase of 84.0% from the FY21 Bud­get of 729,234. ECP’s pas­sen­ger mar­ket share in the Pan­han­dle cur­rent­ly aver­ages approx­i­mate­ly 25.2%, an increase over the FY21 mar­ket share of 22.9%.

ECP’s growth has been record-break­ing, both in pas­sen­ger num­bers and finan­cial­ly. Due to the many unknowns attrib­uted to the COVID-19 Pan­dem­ic, the FY21 Bud­get was inten­tion­al­ly con­ser­v­a­tive. How­ev­er, North­west Flori­da saw a much faster recov­ery of pas­sen­ger traf­fic than oth­er regions across the 


Unit­ed States. Pas­sen­ger traf­fic in FY21 is expect­ed to exceed the record for total pas­sen­ger activ­i­ty, with total trav­el­ers expect­ed to exceed 1.4 mil­lion. The rebound in num­ber of pas­sen­gers may or may not car­ry for­ward to upcom­ing months, thus the pro­jec­tion for FY22 is more con­ser­v­a­tive than the record FY21 year for both pas­sen­gers and rev­enues. With the COVID-19 vari­ants caus­ing a resur­gence of infec­tions, there are still many unknowns as to pas­sen­ger activity. 

As a result of the Coro­n­avirus Pan­dem­ic, the Air­port is receiv­ing grants issued through the FAA to fund oper­a­tional and cap­i­tal expen­di­tures and debt ser­vice. These grants (“COVID-19 Grants”) are the Coro­n­avirus Aid, Relief, and Eco­nom­ic Secu­ri­ty Act (“CARES”), Air­port Coro­n­avirus Response Grant Pro­gram (“ACRGP”), and the Amer­i­can Res­cue Plan Act (“ARPA”). Also includ­ed in the grants are two con­ces­sions relief. 

Since the out­break, the Airport’s fund­ing from the grants is as follows:

CARES: $6,327,925, expires June 22024

ACRGP: $3,748,929, expires April 212025

ACRGP – Con­ces­sions Relief Adden­dum: $133,089, expires April 212025

The appli­ca­tion for ARPA was sub­mit­ted on July 22, 2021 for $6,600,531; and the ARPA – Con­ces­sions Relief Adden­dum was sub­mit­ted on July 16, 2021 for $532,356.

The FY22 Pro­posed Bud­get includes the use of $1,254,824 of the grants to fund debt ser­vice, $5,845,211 to fund cap­i­tal, and $750,000 is applied to oper­a­tional expen­di­tures. Con­ces­sions relief will be proved in coop­er­a­tion with the ter­mi­nal concessionaires.

The Airport’s annu­al debt ser­vice pay­ment to the Flori­da Depart­ment of Trans­porta­tion – State Infra­struc­ture Bank (“SIB Loans”) in pre­vi­ous years totaled $3,089,574. In July 2021, ECP nego­ti­at­ed with the State of Flori­da for an inter­est rate reduc­tion for the two out­stand­ing SIB Loans. The debt ser­vice pay­ment for 2021 will be $2,958,167, and the pay­ment will be reduced to $2,614,217 for years going for­ward. The debt ser­vice pay­ment is fund­ed with Pas­sen­ger Facil­i­ty Charge (“PFC”) funds for 52% of the pay­ment, or $1,538,247 for FY21, and $1,359,393 for FY22 and years there­after. The bal­ance is a cost that is charged to the Airport’s four cost cen­ters cal­cu­lat­ed in the Rates and Charges cal­cu­la­tion. How­ev­er, for both FY21 and FY22, funds from the COVID-19 Grants are being used to pay the bal­ance that is nor­mal­ly fund­ed with Air­port dol­lars in an effort to reduce rates and charges to our Air­line part­ners and oth­er tenants. 

With the refi­nanc­ing in place, the inter­est rates on the SIB loans are 1.97% for Loan 1 and 2.71% for Loan 2. The refi­nanc­ing results in a s sav­ings of near­ly $7 mil­lion dol­lars over the remain­ing life of the loans.

The main focus of the Cap­i­tal Pro­gram cen­ters on Ter­mi­nal relat­ed and eco­nom­ic devel­op­ment projects. The cap­i­tal require­ment for projects and equip­ment from Air­port funds for the FY22 Bud­get is $5,935,548, while FAA funds are bud­get­ed at $5,077,310, FDOT funds equal $2,785,973, COVID-19 Grant funds are $5,845,211, ARFF Grants of $6,000, and Tri­umph funds bud­get­ed at $5,000,000. The total cap­i­tal pro­gram is bud­get­ed at $24,650,042 for FY22, but the com­mence­ment of some projects is depen­dent upon receiv­ing fund­ing from spe­cif­ic grants. 

The Dis­trict is con­tin­u­ing to work with the Flori­da Army Nation­al Guard to relo­cate the Pana­ma City Armory to the Air­port and is work­ing with the FAA and the US Army Corp of Engi­neers on the Envi­ron­men­tal Assess­ment for var­i­ous parcels not includ­ed in the Phase One Permit.


The Dis­trict has sev­er­al projects planned for the Air­port includ­ing envi­ron­men­tal mit­i­ga­tion efforts, vehi­cle park­ing design and con­struc­tion, Ter­mi­nal Build­ing equip­ment and improve­ments, the con­struc­tion of an expan­sion of the out­bound bag­gage facil­i­ties and relat­ed equip­ment, and eco­nom­ic devel­op­ment projects to attract both aero­nau­ti­cal and non-aero­nau­ti­cal busi­ness­es to the Airport.

The Bud­get Work­shop pro­vid­ed for a review and dis­cus­sion of the pro­posed FY22 Oper­at­ing & Cap­i­tal Bud­get and required no for­mal action by the Board. 

A Board dis­cus­sion ensued regard­ing the Air­line Agree­ment overview, new Air­port Author­i­ty employ­ee posi­tions request­ed, cap­i­tal equip­ment, cap­i­tal devel­op­ment projects, eco­nom­ic devel­op­ment projects, future Ter­mi­nal plan­ning, his­tor­i­cal Air­port Finan­cial Per­for­mance, debt ser­vice, COVID-19 Grants, and rates and charges. 

A Board dis­cus­sion ensued regard­ing the jan­i­to­r­i­al con­tract, body cam­eras for Air­port Police, look­ing into addi­tion­al grants from oth­er fund­ing resources, the use of lob­by­ing ser­vices to aid in future grant acqui­si­tion, and upcom­ing ground trans­porta­tion fees. 

For­mal approval of the final Bud­get will be con­sid­ered at the Sep­tem­ber 22, 2021 Board Meeting.


The Bud­get Work­shop was adjourned at approx­i­mate­ly 10:30 a.m.

Kathy Gilmore, Exec­u­tive Sec­re­tary Glen McDon­ald, Chair