FY 2014 Port Everglades Proposed Budget

FY 2014 Port Everglades Proposed Budget

County Commission Vision and Goals Applicable to Port Everglades Efficient and accessible regional intermodal transportation network Develop and enhance sustainable transportation facilities at the Port to meet the demands of travelers, businesses, and the community. Unlimited economic opportunities Increase the economic strength and impact of Port Everglades in a sustainable manner balancing economy, environment, and the community. Become the center for trade in Florida to the world, especially the Caribbean, South and Central America, and Asia. 2of 24

Review of Past Performance Revenues increased Value of cargo trade increased Exports: $14.0 billion (up 5.3%) Net Trade Surplus: $3.6 billion (up 9.1%) Export related Jobs: 75,026 (US) (down 6.0%) Department of Commerce method of calculation has changed Multi day cruise remains #1 revenue source Total Local/Direct Jobs: 11,687(up 2.5%) 3of 24

Measure Key Comparative Performance Data FY 2012 and FY 2011 Port Everglades Miami Jacksonville Tampa Canaveral Savannah* (GA Ports Authority) Charleston* (SC Ports Authority) Operating Revenues (in millions) FY 2012 $142.9 $103.6 $51.8 N/A $66.4 $283.5 $130.9 FY 2011 139.2 109.1 50.9 43.0 56.1 266.5 124.6 Operating Expenses before Depreciation (in millions) FY 2012 72.6 59.6 30.1 N/A 45.5 205.4 123.7 FY 2011 74.2 65.8 31.1 23.8 43.7 194.6 108.0 Change in Net Assets (in millions) FY 2012 37.1 12.6 2.9 N/A 26.0 78.8 17.6 FY 2011 27.0 7.4 (7.5) 8.9 22.2 37.2 21.2 Debt Service Coverage FY 2012 4.28 2.15** 2.18 N/A 3.24 7.30 3.22 FY 2011 2.27 1.96** 2.14 1.50 2.34 6.10 7.07 Ad Valorem Tax Support or Other Shared Revenue from Primary Government (in millions) FY 2012 - - 5.7 N/A - - - FY 2011 - - 7.1 11.8 - - - Revenue Bonds - Moody s Rating FY 2012 A2 A2 A2 A2 A3 Aaa*** AAA, A1**** FY 2011 A2 A2 A2 A2 A3 Aaa*** AAA, A1**** * State Ports ** Blended General Obligation Bonds, Port Revenue Bonds, and Sunshine State Loans *** GA: General Obligation (G.O.) Bonds and Port Revenue Bonds; only State G.O. bonds are rated **** SC: 1998 Revenue Bonds rated AAA; 2010 Revenue Bonds rated A1 N/A: Not available; Received CAFR submission extension 4 of 24

Key Comparative Performance Statistics FY 2012 and FY 2011 Measure Port Everglades Miami Jacksonville Tampa Canaveral Savannah* (GA Ports Authority) Charleston* (SC Ports Authority) Total TEUs** FY 2012 923,600 909,197 923,660 39,882 253 2,982,467 1,432,000 FY 2011 880,999 906,607 900,414 39,632 646 2,927,338 1,384,000 % Change 5% <1% 3% 1% 60% 2% 3% International TEUs FY 2012 911,561 909,197 356,387 39,882 253 2,982,467 1,432,000 FY 2011 867,506 906,607 346,030 39,632 646 2,927,338 1,384,000 % Change 5% <1% 3% 1% 60% 2% 3% Multi day Cruise Passengers FY 2012 3,689,022 3,774,452 195,426 974,259 3,761,056 0 189,445 FY 2011 3,664,103 4,018,161 188,726 875,611 3,100,199 0 338,192 % Change 1% 6% 4% 11% 21% 0% 44% * State Ports ** Twenty-Foot Equivalent Units 5of 24

Trends FY 2008 to FY 2014 6of 24

Historical, Projected, & Budgeted Petroleum Cargo (Barrels in Millions) FY 2008-2014 140.00 120.00 100.00 113.9 108.4 109.4 108.3 104.8 105.0 105.0 80.00 60.00 Barrels 40.00 20.00-2008 2009 2010 2011 2012 2013 2014 Projected Budget 7 of 24

Historical, Projected, & Budgeted Twenty-foot Equivalent Units (TEUs) FY 2008-2014 1,200,000 1,000,000 985.1 881.0 923.6 930.0 943.0 800,000 796.2 793.2 600,000 TEUs 400,000 200,000 2008 2009 2010 2011 2012 2013 2014 Projected Budget 8of 24

Historical, Projected, & Budgeted Multi-day and Daily Cruise Passengers FY 2008-2014 4,500,000 4,000,000 3,500,000 3,000,000 3.23 3.14 3.67 3.95 3.76 3.56 4.03 2,500,000 2,000,000 Daily Multi day 1,500,000 1,000,000 500,000 2008 2009 2010 2011 2012 2013 2014 Projected Budget 9 of 24

Performance Forecast FY 2014 Revenues: $143.8M (down 1.9%) Operating expenses: $83.9M (up 1.9%) Container TEUs: 943,000 (up 1.4% over FY 2013 projected) Cruise passenger traffic: 4,037,667 (up 13.5%) 10 of 24

70,000,000 60,000,000 Historical, Projected, & Budgeted Revenues by Source FY 2008-2014 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 Cruise Cruise w/o CCRC * Container/Bulk Petroleum Real Estate Parking - 2008 2009 2010 2011 2012 2013 2014 Projected Budget * CCRC: Capital Cost Recovery Charge 11 of 24

Proposed FY 2014 Budget 12 of 24

Proposed FY 2014 Budgeted Revenues (Dollars in Millions) Operating Revenues (down 1.9%) $ 143.8 State Capital Grants (up 187.5%) 34.5 State Mandated 5% Reduction (8.9) Fund Balance (up 18.7%) 103.0 Total $272.4 13 of 24

Average Tariff Increases FY 2012 FY 2013 FY 2014 (Proposed) $3,238,400 $2,503,700 $2,623,000 3.2% 3.1% 3.0% 5-year historical average percent increase to support capital programs: 3.93% 14 of 24

Proposed FY 2014 Budgeted Appropriations (Dollars in Millions) Operating Budget (up 1.9%) $ 83.9 Capital Budget (up 69.8%) 73.0 Debt Service Budget Includes Required Debt Service $32.0M Debt Service Reserves $10.3M Reserves 42.3 Operating 14.0 Capital for Programmed Projects 59.2 Total $272.4 15 of 24

Proposed FY 2014 Operating Budget Changes Compared to FY 2013 (Dollars in Thousands) Professional consulting services $(667) Contractual services 268 Security services 426 Utilities 675 Personnel & benefits 881 Total net budget change $1,583 16 of 24

Historical Position Count 240 230 229 226 226 224 224 220 210 218 218 Authorized Funded Positions 200 2008 2009 2010 2011 2012 2013 2014 FY 2014: All vacant and previously unfunded positions will be funded in FY 2014, and requested reclassifications reflect needed skills 17 of 24

Initiatives to Sustain Growth US Army Corps of Engineers Channel Deepening Need Chief s report finalized Need authorization for project in next WRDA authorization bill Need to determine actual cost and seek funding at the State and Federal levels Expand marketing efforts and stakeholder engagement Update and continue to implement Port Master/Vision Plan 18 of 24

Priority Project Update Intermodal Container Transfer Facility (ICTF) Design/Build Package Award 11/12 Construction Start 1/13 Construction Complete 6/14 Channel Deepening & Widening Congressional Authorization 12/13 Design Start 2/14 Design Complete 2/15 Construction Start 11/15 Construction Complete 10/17 Southport Turning Notch Extension Design Start 2012 Design Complete 2014 Construction Start 2016 Construction Complete 10/17 19 of 24

Costs & Funding for Priority Projects Southport Turning Notch Extension and Upland Enhancements * Channel Deepening & Widening Total Project Cost $121.9M Total Project Cost $320.8M Port Funding Total eligible for State funding based on current 75% criteria Currently appropriated State funds $30.5M $91.4M $13.3M Less Anticipated State Funding Less Anticipated Federal Funding TBD $189.2M Currently programmed State funds $58.2M Port Funding $131.6M Remaining amount eligible for additional state funding $19.9M Advanced Maintenance Costs $ 23.0M *Includes mangrove creationenhancement and mitigation in West Lake Park Intermodal Container Transfer Facility Total Project Cost $72M Port land value $19M Currently appropriated State funds $18M FEC Equity FEC State Infrastructure Bank (SIB) Loan FDOT Eller Drive Overpass funded and contract awarded $ 5M $30M $42M 20 of 24

Economic Impact for Priority Projects Projected Economic Impact during Construction Projected Annual Economic Impact in 2029 Total Local/Regional/ Statewide Jobs Personal Income State & Local Taxes Total Local/Regional Jobs Southport Turning Notch Extension Channel Deepening & Widening ICTF* 2,227 5,862 767 $90.6M $238.5M $31.2M $6.7M $17.7M 2.3M 5,529 1,491 2,188 Personal $393.1M $107.0M $154.6M Income State & $29.1M $7.9M $11.4M Local Taxes Statewide Jobs 106,657 29,273 41,637 Personal Income State & Local Taxes $3.4B $934.9M $1.33B $252.2M $69.2M $98.4M * Total jobs for the ICTF is a subset of the total jobs created by the additional cargo throughput that is generated by the Southport Turning Notch Extension and ACOE Deepening and Widening projects. 21 of 24

Proposed Capital Improvement Plan FY 2014 to FY 2018 Full implementation is dependent on internally generated funds, grants, and public/private partnership (P3) agreements 22 of 24

FY 2014 Key Proposed Capital Projects Project (Dollars in Millions) Previously Funded Budget FY 2014 FTZ Relocation (P3) $ $10.0 Post Panamax Crane SP8 (Design and Construction) 6.5 6.0 Southport Turning Notch Extension (Design and Construction) 8.9 34.5 Slip 2 Westward Lengthening (Design and Construction) 1.5 5.8 Cruise Terminal 4 (Design and Construction, which includes passenger loading bridges) 8.6 5.9 Cruise Terminal 25 (Programming) 0.2 Cruise Terminal 29 (Programming) 0.2 Southport Phase IX Container Yard (Design) 0.8 23 of 24

FY 2015-2018 Key Proposed Capital Projects within Approved Port Master Plan Components (Dollars in Millions) Channel Deepening & Widening (Previously Funded 1.0) Southport Turning Notch Extension, Contracts I & II (FY 2014 34.5; Previously Funded 8.9) Northport Petroleum Terminal (P3) Slip 1 New Bulkheads at Berths 9 & 10, Phase I (Previously Funded 4.5) FTZ Relocation (P3)(FY 2014 10.0) Midport Intermodal Center Cruise Terminal 4 Parking Garage (Programming and Design) Slip 2 Westward Lengthening (FY 2014 5.8; Previously Funded 1.5) Container Cranes (FY 2014 6.0; Previously Funded 6.5) Westlake Improvements for Mitigation (Previously Funded 1.2) [for Southport Turning Notch Extension Contract I] New Bulkheads at Berths 1, 2, & 3 New Bulkheads at Berths 16, 17, & 18 $130.0 52.1 75.0 47.5 44.0 17.5 2.0 15.8 24.0 12.6 17.0 3.0 24 of 24