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ALBANY COUNTY AIRPORT AUTHORITY Albany, New York 12211-1057

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ALBANY COUNTY AIRPORT AUTHORITY Albany, New York 12211-1057 ALBANY COUNTY AIRPORT AUTHORITY 2011 Operating Budget Adopted December 6, 2010 A component unit of the County of Albany, in the Town of Colonie, New York ALBANY COUNTY AIRPORT AUTHORITY Albany, New York 12211-1057 BOARD MEMBERS DAVID E. LANGDON - Chairman JOHN A. GRAZIANO, JR. ANTHONY GORMAN REV. KENNETH DOYLE ELLIOTT A. SHAW DENNIS J. FITZGERALD DORSEY M. WHITEHEAD ______________________________________________________________ ______________________________________________________________ SENIOR STAFF JOHN A. O’DONNELL 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 CUSIP #012123XXX 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 2011 -------------------------------------------------------------------------- 1-4 Airline Use and Lease Agreement------------------------------------------------------------------- 1-4 Airport and Fixed Based Operations Operating Agreements --------------------------------- 1-4 – 1-5 2011 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 ---------------------------------------------------------------------------------------- 1-8 – 1-9 Award------------------------------------------------------------------------------------------------------ 1-9 Acknowledgments--------------------------------------------------------------------------------------- 1-10 2. AIRPORT AUTHORITY OVERVIEW Organization ---------------------------------------------------------------------------------------------- 2-1 Vision, Mission, Goal, Objectives and Values --------------------------------------------------- 2-1– 2-3 Performance Measures ------------------------------------------------------------------------------- 2-3 2011 Organizational Strategic Goals -------------------------------------------------------------- 2-4– 2-5 Budget Process ----------------------------------------------------------------------------------------- 2-5– 2-6 Summary of Financial Policies ---------------------------------------------------------------------- 2-7– 2-9 Economic Information --------------------------------------------------------------------------------- 2-9– 2-10 Albany International Airport Nonstop Scheduled Passenger Service---------------------- 2-10 Albany International Airport Property Inventory ------------------------------------------------- 2-11– 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 ------------------------------------------------------------------- 2-15– 2-17 Colleges and Universities in the Capital District ------------------------------------------------ 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 – 3-12 Revenues, Audited 2009, Adopted 2010, Projected 2010, and Budget 2011 ----------- 3-13 – 3-14 4. EXPENSES 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. AVPORT’S COST CENTER STRUCTURE Summary of AvPort’s Cost Center Structure ---------------------------------------------------- 5-1 AvPort’s Performance Measurements, 2010/2011 Goals, Objectives and Achievements, and 2011 Summary of Expenses---------------------------------------------- 5-1 – 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 CENTERS Summary of Million Air’s Cost Center Structure----------------------------------------------- 6-1 – 6-2 Million Air’s Performance Measurements, 2010/2011 Goals, Objectives and Achievements, and 2011 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) Summary of ACAA Cost Center Structure ----------------------------------------------------- 7-1 ACAA’s Performance Measurements, 2010/2011 Goals, Objectives and Achievements, and 2011 Summary of Expenses--------------------------------------------- 7-1 – 7-7 ACAA’s Expenditure Budget by Line Items ---------------------------------------------------- 7-8 – 7-10 ACAA’s Schedule of Salaries and Benefits ---------------------------------------------------- 7-10 ACAA’s Organizational Chart---------------------------------------------------------------------- 7-11 8. INDEBTEDNESS Debt Policy--------------------------------------------------------------------------------------------- 8-1 – 8-2 Debt Limit----------------------------------------------------------------------------------------------- 8-2 Master Bond Resolution ---------------------------------------------------------------------------- 8-3 Debt Outstanding------------------------------------------------------------------------------------- 8-2 – 8-3 Debt Issued by the County ------------------------------------------------------------------------- 8-3 Schedules of Debt Service and their Purpose------------------------------------------------- 8-4 – 8-10 Passenger Facility Charges (PFC’s)------------------------------------------------------------- 8-11 Debt Service Coverage ----------------------------------------------------------------------------- 8-12 Calculation of PFC Revenues --------------------------------------------------------------------- 8-13 Debt Schedules Audited 2009, Adopted 2010, Projected 2010, and Budget 2011 -- 8-14 – 8-19 9. CAPITAL HISTORY History Airport Development----------------------------------------------------------------------- 9-1 Albany Airport Authority Created ----------------------------------------------------------------- 9-1– 9-2 Capital Developments by the Authority --------------------------------------------------------- 9-2– 9-5 Five Year Capital Programs ----------------------------------------------------------------------- 9-5 – 9-6 Capital Development -------------------------------------------------------------------------------- 9-6 – 9-7 2011 Capital Expenditures ------------------------------------------------------------------------- 9-7 – 9-9 2011 Summary of Capital Projects and Equipment Purchases --------------------------- 9-10 Five Year Capital Plan Goals and Objectives ------------------------------------------------- 9-11 Capital Program for 2010 – 2014----------------------------------------------------------------- 9-11 – 9-16 Potential Funding Sources ------------------------------------------------------------------------- 9-16 Five Year Capital Plan ------------------------------------------------------------------------------ 9-17 – 9-18 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 – 10-21 11. GLOSSARY 11-1 – 11-6 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 2010 TO THE MEMBERS OF THE AUTHORITY: The Finance Department herein presents Albany International Airport’s (ALB) operating budget for calendar year 2011. This represents the 17th annual operating budget prepared by the Authority since it assumed management and financial responsibility for the Airport in 1994. The budget has been prepared on an accrual basis with certain exceptions and includes
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