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2017 Adopted Budget ALBANY COUNTY AIRPORT AUTHORITY 2017 Operating Budget Adopted December 12, 2016 –– New York’s Tech Valley Airport A component unit of the County of Albany, located in the Town of Colonie, New York flyalbany.com ALBANY COUNTY AIRPORT AUTHORITY Albany, New York 12211-1057 BOARD MEMBERS REV. KENNETH DOYLE – Chairman DORSEY M. WHITEHEAD STEVEN H. HEIDER LYON M. GREENBERG, M.D. PATRICIA M. REILLY ANTHONY GORMAN PAULA T. WILKERSON ______________________________________________________________ ______________________________________________________________ SENIOR STAFF JOHN A. O’DONNELL, P.E. WILLIAM J. O’REILLY, CPA, CGFM Chief Executive Officer Chief Financial Officer MARGARET HERRMANN RIMA A. CERRONE Chief Accountant Budget & Performance Manager _____________________ www.albanyairport.com ALBANY COUNTY AIRPORT AUTHORITY TABLE OF CONTENTS PAGES 1. TRANSMITTAL LETTER/BUDGET MESSAGE Status of Airline Industry ------------------------------------------------------------------------------- 1-1 – 1-2 Air Trade Area served by Albany International Airport ----------------------------------------- 1-2 Status of Albany International Airport --------------------------------------------------------------- 1-2 – 1-3 Activity Projections for 2017 -------------------------------------------------------------------------- 1-3 – 1-4 Airline Use and Lease Agreement ------------------------------------------------------------------- 1-4 Airport and Fixed Based Operations Operating Agreements --------------------------------- 1-4 – 1-5 2017 Operating Budget Financial Highlights ------------------------------------------------------ 1-5 – 1-6 Airline Rates and Charges Summary --------------------------------------------------------------- 1-6 – 1-7 GAAP Financial Statements -------------------------------------------------------------------------- 1-7 – 1-8 Budget Summary ---------------------------------------------------------------------------------------- 1-9 – 1-10 Award ------------------------------------------------------------------------------------------------------ 1-10 Acknowledgments --------------------------------------------------------------------------------------- 1-10 2. AIRPORT AUTHORITY OVERVIEW Organization ---------------------------------------------------------------------------------------------- 2-1 Vision, Mission, Goal, Objectives and Values --------------------------------------------------- 2-1 – 2-3 Performance Measures ------------------------------------------------------------------------------- 2-3 – 2-4 2017 Organizational Strategic Goals -------------------------------------------------------------- 2-4 – 2-5 Budget Process ----------------------------------------------------------------------------------------- 2-6 – 2-7 Summary of Financial Policies ---------------------------------------------------------------------- 2-7 – 2-10 Economic Information --------------------------------------------------------------------------------- 2-10 Albany International Airport Nonstop Scheduled Passenger Service ---------------------- 2-11 Albany International Airport Property Inventory ------------------------------------------------- 2-12 Comparison of Geographic Distance -------------------------------------------------------------- 2-13 Average Fare Comparison of Selected Commercial Airports -------------------------------- 2-14 Graph of Air Trade Population ---------------------------------------------------------------------- 2-15 Albany, the Heart of Tech Valley ------------------------------------------------------------------- 2-16– 2-18 Colleges and Universities in the Albany Area --------------------------------------------------- 2-18 Major Private Sector Employers in the Capital Region ---------------------------------------- 2-18 Graph of Capital Region Unemployment Rate -------------------------------------------------- 2-19 3. REVENUES Description of Revenues ------------------------------------------------------------------------------ 3-1 – 3-13 Revenues, Audited 2015, Adopted 2016, Projected 2016, and Budget 2017 ----------- 3-14 – 3-15 4. EXPENSES Summary of Expenses -------------------------------------------------------------------------------- 4-1 Description of Expense Budget Items ------------------------------------------------------------- 4-1 – 4-4 Operating Expenses by Category ------------------------------------------------------------------ 4-5 Operating Expenses by Department --------------------------------------------------------------- 4-6 Expenditures by Line Item ---------------------------------------------------------------------------- 4-7 – 4-10 5. AFCO AVPORT’S MANAGEMENT, LLC’S COST CENTER STRUCTURE Summary of AvPort’s Cost Center Structure ---------------------------------------------------- 5-1 AvPort’s Performance Measurements, 2016/2017 Goals, Objectives and Achievements, and 2017 Summary of Expenses ----------------------------------------------- 5-2 – 5-21 AvPort’s Expenditure Budget by Line Items ----------------------------------------------------- 5-22 – 5-24 AvPort’s Schedule of Salaries and Benefits ----------------------------------------------------- 5-25 AvPort’s Organizational Chart ----------------------------------------------------------------------- 5-26 PAGES 6. MILLION AIR COST CENTER STRUCTURE Summary of Million Air’s Cost Center Structure----------------------------------------------- 6-1 – 6-2 Million Air’s Performance Measurements, 2016/2017 Goals, Objectives and Achievements, and 2017 Summary of Expenses --------------------------------------------- 6-2 – 6-8 Million Air’s Expenditure Budget by Line Items ----------------------------------------------- 6-9– 6-11 Million Air’s Schedule of Salaries and Benefits------------------------------------------------ 6-11 Million Air’s Organizational Chart ----------------------------------------------------------------- 6-12 7. ALBANY COUNTY AIRPORT AUTHORITY (ACAA) COST CENTER STRUCTURE Summary of ACAA Cost Center Structure ----------------------------------------------------- 7-1 ACAA’s Performance Measurements, 2016/2017 Goals, Objectives and Achievements, and 2017 Summary of Expenses --------------------------------------------- 7-1 – 7-4 ACAA’s Expenditure Budget by Line Items ---------------------------------------------------- 7-5 – 7-7 ACAA’s Schedule of Salaries and Benefits ---------------------------------------------------- 7-7 ACAA’s Organizational Chart ---------------------------------------------------------------------- 7-8 8. INDEBTEDNESS Debt Policy --------------------------------------------------------------------------------------------- 8-1 – 8-2 Debt Limit ----------------------------------------------------------------------------------------------- 8-2 Master Bond Resolution ---------------------------------------------------------------------------- 8-2 Debt Outstanding ------------------------------------------------------------------------------------- 8-2 – 8-3 Schedules of Debt Issued by the Authority and their Purpose ---------------------------- 8-4 – 8-9 Passenger Facility Charges (PFC’s) ------------------------------------------------------------- 8-10 Application of Authority Revenue Under the Master Bond Resolution ------------------ 8-10 Debt Service Coverage ----------------------------------------------------------------------------- 8-11 Calculation of PFC Revenues --------------------------------------------------------------------- 8-12 Debt Schedules Audited 2015, Adopted 2016, Projected 2016, and Budget 2017 -- 8-13 – 8-16 9. CAPITAL HISTORY History of Airport Development-------------------------------------------------------------------- 9-1 Albany Airport Authority Created ----------------------------------------------------------------- 9-1– 9-2 Capital Developments by the Authority --------------------------------------------------------- 9-2– 9-6 Five Year Capital Programs ----------------------------------------------------------------------- 9-6– 9-7 Capital Development -------------------------------------------------------------------------------- 9-7 2016 Capital Expenditures ------------------------------------------------------------------------- 9-7 – 9-14 2016 Summary of Capital Projects and Equipment Purchases --------------------------- 9-15 Five Year Capital Plan Goals and Objectives ------------------------------------------------- 9-16 Capital Program for 2015 – 2019 ----------------------------------------------------------------- 9-17 – 9-20 Potential Funding Sources ------------------------------------------------------------------------- 9-20 – 9-21 Five Year Capital Plans 2015 – 2019 ------------------------------------------------------------ 9-22 – 9-23 10. AIRLINES RATES AND CHARGES SUMMARY Airlines Rates and Charges Summary ---------------------------------------------------------- 10-1 Cost Centers and Allocations ---------------------------------------------------------------------- 10-1 – 10-2 Schedules for Rates and Charges --------------------------------------------------------------- 10 -3 – 10-17 11. GLOSSARY ------------------------------------------------------------------------------------------------------------ 11-1 – 11-5 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 December 12, 2016 TO THE MEMBERS OF THE AUTHORITY: The Finance Department herein presents
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