The Semi-Vir­tu­al Board Work­shop of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:00 a.m., Sep­tem­ber 2, 2020 by Chair­man Glen McDon­ald. Board mem­bers were offered the option of call­ing in via Zoom, or attend­ing the meet­ing in per­son observ­ing the CDC’s rec­om­men­da­tions and Gov­er­nor DeSan­tis’ Exec­u­tive Order. 

The Invo­ca­tion was giv­en by Vice Chair­man Hol­ly Melzer.

The Pledge of Alle­giance was led by Chair­man McDonald.

The Exec­u­tive Sec­re­tary called the roll and indi­cat­ed all the Board mem­bers were present. Those Board mem­bers present in per­son were Chair­man McDon­ald, Vice Chair­man Melz­er, Mr. Del Lee, Mr. Jay Tusa, May­or Mark Shel­don, and Mr. Will Cramer. Mr. James John­son was present virtually. 

FY 21 Oper­at­ing and Cap­i­tal Budget

The draft FY 21 Oper­at­ing and Cap­i­tal Bud­get was pre­vi­ous­ly pro­vid­ed to the Board for their review in prepa­ra­tion for this discussion.

Mr. McClel­lan and Ms. Nel­son reviewed the pro­ject­ed oper­at­ing rev­enues and oper­at­ing expens­es for the cur­rent FY 20 Bud­get and for the pro­posed FY 21 Budget.

Oper­at­ing rev­enues include funds that will be received from 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 FY 20 are pro­ject­ed to be $13,279,577, which equates to $3,074,365, or 18.8%, under bud­get. The major­i­ty of the decrease in total rev­enue is due to low­er pas­sen­ger traf­fic than fore­cast­ed, which results in low­er con­ces­sion fees and park­ing rev­enues. Over­all, the FY 20 pro­ject­ed oper­at­ing expens­es are $717,794, or 8.1%, less than bud­get­ed due to low­er expens­es in pro­ject­ed salaries and ben­e­fits, util­i­ties, air­field and grounds costs, park­ing lot man­age­ment fees, and pro­fes­sion­al services.

Pas­sen­ger vol­umes for FY 20 are antic­i­pat­ed to be down approx­i­mate­ly 28.0% from FY 19. Although, FY 20 did show strong pos­i­tive growth in the first five months of the year (pas­sen­ger lev­els were up 24.1% over FY 19), the Coro­n­avirus (COVID-19) pan­dem­ic has had a sig­nif­i­cant effect on trav­el­ers since March 2020. April saw a decrease in pas­sen­gers of 94.7% over April 2019, with May down 73.9%, but in recent months ECP has seen a rebound in traf­fic that is high­er than the indus­try aver­age. As of the end of July, year to date total pas­sen­ger count is down 43.7% com­pared to FY 19, and the month of July down 29.3%. August pas­sen­ger traf­fic is expect­ed to be under FY 19 by 19 – 20%.


The FY 21 bud­get­ed oper­at­ing rev­enues total $12,298,396, and are decreased by $981,181, or 7.4%, from the FY 20 pro­ject­ed rev­enues. When com­par­ing the FY 21 Bud­get to the FY 20 Bud­get, there is a decrease of $4,055,546, or 24.8%, which is pri­mar­i­ly due to a decrease in the land­ing fee and rental rate, low­er con­ces­sion fees includ­ing rental cars, retail, food and bev­er­age, and reduced park­ing revenues.

The oper­at­ing expens­es in the FY 21 Bud­get rep­re­sent an increase of $844,786, or 10.4%, over the pro­ject­ed FY 20 oper­at­ing expens­es, with the increase in per­son­nel costs, air­field and ground costs, mar­ket­ing, dues, and util­i­ties being the largest fac­tors in the increase. The total oper­at­ing expens­es bud­get­ed for FY 21 are $9,003,262. When com­par­ing the FY 21 Bud­get to the FY 20 Bud­get, there is an increase of $126,992 or 1.4%. The FY 21 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.

On May 18, 2020, the Air­port received and accept­ed on June 3, 2020 a Coro­n­avirus Aid, Relief, and Eco­nom­ic Secu­ri­ty Act (“CARES Act”) Grant in the amount of $6,327,925 which must be used with­in four years of accep­tance. The FY 21 Bud­get is apply­ing CARES Act Funds in the amount of $1,482,996 to the debt ser­vice pay­ment. The use of these funds results in low­er costs to the cost cen­ters; thus, low­er rates and charges to the air­lines and oth­er tenants.

The main focus of the Cap­i­tal Pro­gram cen­ters on eco­nom­ic devel­op­ment projects, con­tin­ued devel­op­ment of the envi­ron­men­tal mit­i­ga­tion pro­gram, tran­sient air­craft park­ing apron expan­sion, the out­bound bag­gage sys­tem redesign, and the north ter­mi­nal expan­sion plan­ning. The cap­i­tal require­ment for projects and equip­ment from Air­port funds for the FY 21 Bud­get is $9,925,471, while FAA funds are bud­get­ed at $1,310,075, FDOT funds equal $7,362,042, and Tri­umph funds are bud­get­ed at $8,400,000. The total cap­i­tal pro­gram is bud­get­ed at $26,997,588 for FY 21, but the com­mence­ment of some projects is depen­dent upon receiv­ing fund­ing from spe­cif­ic grants. 

Addi­tion­al­ly, the Dis­trict is work­ing with the Flori­da Army Nation­al Guard to relo­cate the Pana­ma City Armory to the Air­port, and Project Gator” is mov­ing for­ward in the Tri­umph Fund plan­ning process.

This Bud­get Work­shop pro­vid­ed for a review and dis­cus­sion of the pro­posed FY 21 Oper­at­ing and Cap­i­tal Bud­get and required no for­mal action by the Board. 

A Board dis­cus­sion ensued regard­ing the Air­port Author­i­ty Employ­ees’ pay range increase phase in time­line, and there was a con­sen­sus to adhere to the two-year phase in peri­od, rather than change to a three-year phase in peri­od, even if it means using CARES Act monies.

A Board dis­cus­sion ensued regard­ing the Mas­ter Plan Update. 

For­mal approval of the final Bud­get will be con­sid­ered at the Sep­tem­ber 23, 2020 Board Meeting.


The Bud­get Work­shop was adjourned at approx­i­mate­ly 10:35 a.m.

Kathy Gilmore, Exec­u­tive Sec­re­tary Glen McDon­ald, Chairman