|
Internal charges are derived from services that departments provide to each
other. For example, other departments reimburse the Accounting department for
payroll processing and Human Resources is reimbursed for processing employment
vacancies.
|
| Fiscal
Year |
1998a |
1999a |
2000a |
2001 a |
2002 a |
2003 b |
2003 p |
2004 p |
2005 p |
2006 p |
2007 p |
| Revenue $ |
5,703 |
4,740 |
4,902 |
5,073 |
4,829 |
4,475 |
6,073 |
6,534 |
6,639 |
6,839 |
7,044 |
| % Change |
6.2% |
-16.9% |
3.4% |
3.5% |
-4.8% |
-7.3% |
25.8% |
7.6% |
1.6% |
3.0% |
3.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Historical Events |
|
In FY 1999, the allocation method for indirect costs was modified resulting in
a significant decrease. Indirect charges lag one year from the time of service.
|
|
|
The Airport Fund did not pay indirect user fees in FY 2002 and part of FY 2003.
However, Airport paid the equivalent amount to fund the construction of the
Commerce Street Fire Station project, the structural fire station that serves
the Airport region.
|
|
|
The $1.6
million increase from the FY 2003 adopted budget to the FY 2003 revised
projection includes Airport reimbursement to the Fire Department for Air Rescue
and Fire Fighting (ARFF) services ($1,048,204), which began March 2002. March
2003, Airport resumed indirect reimbursements to the General fund ($296,432).
|
|
|
In FY 2003,
the Information Technology Division was reorganized, which resulted in changes
to services charged through the indirect plan and those charged directly to
departments. This changed the amounts billed by about $300,000.
|
| |
| Projection/Assumptions |
|
|
The
projection for FY 2003 assumes that Airport will resume paying indirect user
fees for operating services (in FY 2002 these revenues were allocated to the
Commerce Street Fire Station project).
|
|
|
FY 2003 projections incorporate a full year of reimbursement from Airport for
ARFF services provided by the Fire Department.
|
|
|
The $460,000
increase from FY 2003 revised projection to FY 2004 proposed is because the FY
2004 and 2005 budgets include statistical changes made to the Indirect Cost
plan to accommodate the changes in the Information Technology division,
increased citywide computer system development costs, and increased usage of
central services from actual Indirect payers.
|
|
|
Projections
for FY 2004 and FY 2005 are based on recovering inflation cost of service of
2.2% and assumes serving departments remain staffed at 2003 levels.
|
| |
|
Threats/Opportunities
|
|
|
Economic changes.
|
|
|
Allocation method changes between direct and indirect internal charges.
|
|
|
|