Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Finance
Information
Requested Action
title
MOTION TO ADOPT Resolution Amending the Broward County Administrative Code, the title of which is as follows:
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF BROWARD COUNTY, FLORIDA, PERTAINING TO RATES, FEES, AND CHARGES AT FORT LAUDERDALE-HOLLYWOOD INTERNATIONAL AIRPORT; AMENDING SECTION 39.2 AND EXHIBIT 39.A OF THE BROWARD COUNTY ADMINISTRATIVE CODE (“ADMINISTRATIVE CODE”) TO REFLECT CHANGES TO RATES, FEES, AND CHARGES; AND PROVIDING FOR SEVERABILITY, INCLUSION IN THE ADMINISTRATIVE CODE, AND AN EFFECTIVE DATE.
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Why Action is Necessary
A Resolution directing the County Administrator to publish Notice of Public Hearing to consider adoption of the Resolution amending the Broward County Administrative Code (“Administrative Code”) was adopted by the Broward County Board of County Commissioners (“Board”) at its meeting of September 5, 2024.
What Action Accomplishes
Allows for the Board's consideration of the Resolution to amend the Administrative Code.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THIS MOTION.
The Broward County Aviation Department (“BCAD”) annually reviews its terminal rental rates, facility usage fees, and landing fees in the Administrative Code, which are incorporated in the agreements with the various airlines and other vendors at the Fort Lauderdale-Hollywood International Airport (“FLL”). These charges are based on a residual rate model methodology that requires rates to be set at a level that ensures expenditures are adequately covered. This methodology uses BCAD’s budgeted revenues, expenses, debt service, and certain capital outlays to calculate rental rates, facility usage fees, and landing fees.
BCAD presented the Fiscal Year 2025 budget to the Board during a workshop that was held on August 22, 2024. BCAD also presented the proposed Fiscal Year 2025 operating budget and changes to rates and charges to the Airline-Airport Affairs Committee (“Committee”) on August 2, 2024. While the Committee’s approval of the operating budget is not required under the agreements, the Committee reviewed the proposed charges set forth in the proposed Resolution (Exhibit 1).
Based on amended rates, the overall Cost per Enplaned Passenger (“CPE”) is projected to be $8.84 in Fiscal Year 2025. The budgeted CPE for Fiscal Year 2024 is $9.99. The decrease from Fiscal Year 2024 to Fiscal Year 2025 is due to a reduction in the net airline requirement under FLL’s residual rate model.
If the proposed Resolution is adopted by the Board, the proposed changes would be effective October 1, 2024.
Source of Additional Information
Mark E. Gale, CEO/Director, Aviation Department, (954) 359-6199
Fiscal Impact
Fiscal Impact/Cost Summary
Airline revenues from the amended Chapter 39 rates and charges are estimated to be $156 million in Fiscal Year 2025.