Albany County Airport Authority
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ALBANY COUNTY AIRPORT AUTHORITY 1957 1962 Albany County Airport Authority Administration Building, Suite 200 1980 2009 Albany, NY 12211-1057 518-242-2222 www.albanyairport.com COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2009 A COMPONENT UNIT OF THE COUNTY OF ALBANY LOCATED IN THE TOWN OF COLONIE NEW YORK Albany County Airport Authority As of December 31, 2009 Authority Board Members David E. Langdon Elliott A. Shaw Chair Treasurer Term Expires: December 31, 2008 Term Expires: December 31, 2009 Dorsey M. Whitehead Rev. Kenneth J. Doyle Dennis J. Fitzgerald Secretary Member Member Term Expires: December 31, 2008 Term Expires: December 31, 2011 Term Expires: December 31, 2012 Anthony Gorman John A. Graziano, Jr. Member Member Term Expires: December 31, 2012 Term Expires: December 31, 2009 Authority Management John A. O’Donnell, PE Chief Executive Offi cer William J. O’Reilly, CPA Chief Financial Offi cer Peter F. Stuto, Esq. Airport Counsel ALBANY COUNTY AIRPORT AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2009 Prepared by the Finance Department William J. O’Reilly, CPA Chief Financial Offi cer Margaret Herrmann Chief Accountant A Component Unit of the County of Albany Town of Colonie, New York www.albanyairport.com CUSIP #012123XXX TABLE OF CONTENTS PAGE(S) I. INTRODUCTORY SECTION Albany County Airport Authority: Members and Principal Officers .....................................Inside Front Cover Chairman’s Message ...................................................................................... 1 Letter of Transmittal ................................................................................... 3-13 Organizational Chart ..................................................................................... 14 Certificate of Achievement for Excellence in Financial Reporting ................. 15 II. FINANCIAL SECTION Independent Auditor’s Report................................................................... 18-19 Management’s Discussion and Analysis .................................................. 20-35 Financial Statements: Comparative Statements of Net Assets ............................................... 36-37 Comparative Statements of Revenues, Expenses and Changes in Net Assets......................................................................... 38 Comparative Statements of Cash Flows ................................................... 39 OPEB Trust Statement of Fiduciary Fund Net Assets............................... 40 OPEB Statement of Changes in Fiduciary Fund Net Assets..................... 41 Notes to Financial Statements ............................................................. 43-73 Required Supplementary Information: OPEB Trust Schedule of Funding Progress.............................................. 76 Other Supplementary Information: Schedule of Debt Service Requirements to Maturity............................ 78-79 Schedule of Governmental Payments and Services ................................. 80 III. STATISTICAL SECTION Total Annual Revenues, Expenses and Changes in Net Assets.............. 82-83 Changes in Cash and Cash Equivalents.................................................. 84-85 Principal Revenue Sources and Cost per Enplaned Passenger .............. 86-87 Ratios of Outstanding Debt ...................................................................... 88-89 Revenue Bond Debt Service.................................................................... 90-91 Population in the Air Trade Area ................................................................... 92 Major Employers in Air Trade Area ............................................................... 93 i Colleges and Universities in the Air Trade Area............................................ 94 Airport Information......................................................................................... 95 Enplaned Passengers .............................................................................. 96-97 Airline Landed Weights ............................................................................ 98-99 Aircraft Operations ............................................................................... 100-102 Airlines Serving the Albany International Airport ......................................... 103 Scheduled Jet Airline Service...................................................................... 104 Scheduled Commuter Airline Service.......................................................... 105 Primary Origination and Destination Passenger Markets............................ 106 IV. COMPLIANCE SECTION Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................... 108-109 Schedule of Expenditures of Federal and New York State Department of Transportation Financial Assistance and Notes thereto ....................................................................... 110-111 Independent Auditors’ Report on Compliance with Requirements Applicable to the Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 ................... 112-113 Independent Auditors’ Report on Compliance with Requirements Applicable to State Transportation Assistance Expended and on Internal Control over Compliance............................................. 114-115 Schedule of Findings and Questioned Costs .............................................. 116 Independent Auditors’ Report on Compliance with Requirements Applicable to the Passenger Facility Charge Program and on Internal Control over Compliance............................................. 117-118 Schedule of Passenger Facility Charges Collected and Expended And Notes thereto ............................................................................... 119 Passenger Facility Charge Program Schedule of Findings And Questioned Costs......................................................................... 120 Biographies of the Members of the Albany County Airport Authority ..................... 121 Biographies of the Albany County Airport Authority Senior Staff ........................... 123 ii Introduction Albany County Airport Authority Introduction ALBANY COUNTY AIRPORT AUTHORITY TEL: 518-242-2222 ALBANY INTERNATIONAL AIRPORT ADMIN FAX: 518-242-2641 ADMINISTRATION BUILDING FINANCE FAX: 518-242-2640 SUITE 200 SITE: www.albanyairport.com ALBANY, NEW YORK 12211-1057 Chairman’s Message March 1, 2010 The economic recession that has gripped the nation continued its stronghold on the airline industry and air travelers during 2009. Fewer flights, smaller aircraft and a decline in passenger volume required the Airport Authority to carefully review its daily operations, revenue sources and expenditures to uphold budgetary goals and maintain our high level of customer service. Facing the softening economy, many airlines downsized their fleets in an effort to improve load factors and revenue on a per flight basis. Enplaned passengers at Albany declined 4.5%. However, parking revenue declined by only 2.6% as a result of increased revenue per enplaned passenger due to an increase in the parking fees imposed by the Authority. Albany International Airport did make other adjustments to ensure fiscal integrity. Until the 3rd quarter of 2009, Albany was able to avoid increasing its Passenger Facility Charge (PFC). This year, Albany became the last commercial airport in New York State to raise its PFC to $4.50, a move our Board found necessary to ensure the strong fiscal health of the Airport. Another adjustment made by the Authority was to create and fund an Other Post-Employment Benefit (OPEB) Trust to address the Authority’s obligation to retirees, making future contributions very manageable. The Authority also worked diligently to control expenses and enhance revenues. With the cooperation of the Airport’s management firm, AFCO Avports, staffing was held to 160 employees. The Authority also authorized significant upgrades to the Food and Beverage services with the addition of Starbucks, Dunkin Donuts, Brioche Doree and Silks Saratoga Bistro in an effort to increase revenues. Albany was fortunate to receive a $6.7 million federal stimulus grant to proceed with the Latham Water Tower removal project. Other significant grants enabled the purchase of firefighting and glycol recovery vehicles, as well as the acquisition of 43 acres of land located within the Runway 1 protection zone. Airport security continued to play a major role in Airport Operations. The Airport was the recipient of a number of new and faster explosive detection devices which the Transportation Security Administration (TSA) installed in each of our airline bag make-up rooms. A TSA grant was also received in the amount of $1.7 million which provides funding to maintain the positions of seven Albany County sheriffs deputies. And, we were honored that Ms. Kim Herrera, an Albany TSA screener was named national TSA Employee of the Year. I am proud to say that the hard work and dedication of all Airport employees enabled the Airport to complete 2009 on sound financial footing and positioned us well as we enter the new year. David E. Langdon Chairman 1 Albany County Airport Authority Introduction ALBANY INTERNATIONAL AIRPORT Airport Website www.albanyairport.com 2 Albany County Airport Authority Introduction ALBANY COUNTY AIRPORT AUTHORITY TEL: