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ALBANY COUNTY AIRPORT AUTHORITY New York's Tech ALBANY COUNTY AIRPORT AUTHORITY Comprehensive Annual Financial Report For the Years Ended December 31, 2019 and 2018 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 As of December 31, 2019 Authority Board Members Rev. Kenneth J. Doyle Anthony Gorman Chair Vice-Chair Term Expires: December 31, 2019 Term Expires: December 31, 2020 Samuel A. Fresina Lyon M. Greenberg, MD Steven H. Heider Member Treasurer Term Expires: December 31, 2020 Member Term Expires: December 31, 2021 Term Expires: December 31, 2021 Kevin R. Hicks, Sr. Sari O’Connor Member Member Term Expires: December 31, 2020 Term Expires: December 31, 2020 Authority Management Philip F. Calderone, Esq. Michael F. Zonsius, CPA Peter F. Stuto, Esq. ALBANY COUNTY AIRPORT AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT Years Ended December 31, 2019 and 2018 Prepared by the Finance Department Michael F. Zonsius, CPA Chief Financial Officer Margaret Herrmann Chief Accountant A Component Unit of the County of Albany Town of Colonie, New York www.albanyairport.com CUSIP #012123XXX Additional information relating to the Airport Authority is available at the Airport’s website: www.flyalbany.com If you would like any further information, contact the Chief Financial Officer at (518) 242-2204 or at Albany County Airport Authority, 737 Albany Shaker Rd, Administration Building Room 204, Albany, NY 12211 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 ............................................................................................... 2-11 Organizational Chart ................................................................................................. 12 Certificate of Achievement for Excellence in Financial Reporting ............................. 13 II. FINANCIAL SECTION Independent Auditor’s Report ............................................................................... 16-18 Management’s Discussion and Analysis .............................................................. 19-35 Financial Statements: Comparative Statements of Net Position ......................................................... 36-37 Comparative Statements of Revenues, Expenses and Changes in Net Position ................................................................................... 38 Comparative Statements of Cash Flows ............................................................... 39 OPEB Trust Statements of Fiduciary Fund Net Position ....................................... 40 OPEB Statements of Changes in Fiduciary Fund Net Position ............................. 41 Notes to Financial Statements ......................................................................... 43-76 Required Supplementary Information: Schedule for the Authority’s Proportionate Share of Net Pension Liability ........................................................................................ 78 Schedule for the Authority’s Contributions ............................................................ 78 Schedule of Changes in the Airport’s Net OPEB Liability and Related Ratios ...... 79 Actuarially Determined Contribution – Deficiency / (Excess) ................................ 80 OPEB Actuarial Methods and Assumptions .......................................................... 81 Other Supplemental Information: Schedule of Debt Service Requirements to Maturity ............................................. 84 Schedule of Governmental Payments and Services ............................................. 85 Independent Accountant’s Report on Applying Agreed- Upon Procedures-Customer Facility Charges .............................................. 86 Statement of Revenues, Expenses and Changes in Net Position-Customer Facility Charges .............................................................. 88 III. STATISTICAL SECTION Total Annual Revenues, Expenses and Changes in Net Position ........................ 90-91 Changes in Cash and Cash Equivalents .............................................................. 92-93 i Principal Revenue Sources and Cost per Enplaned Passenger .......................... 94-95 Ratios of Outstanding Debt .................................................................................. 96-97 Revenue Bond Debt Service Coverage ............................................................... 98-99 Population in the Air Trade Area ............................................................................. 100 Major Employers in Air Trade Area ......................................................................... 101 Colleges and Universities in the Air Trade Area ...................................................... 102 Airport Information ................................................................................................... 103 Enplaned Passengers ...................................................................................... 104-105 Airline Landed Weights .................................................................................... 106-107 Aircraft Operations ........................................................................................... 108-110 Airlines Serving the Albany International Airport ..................................................... 111 Scheduled Jet Airline Service .................................................................................. 112 Primary Origination and Destination Passenger Markets ........................................ 113 IV. COMPLIANCE SECTION Independent Auditor’s 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 ............................................................... 116-117 Schedule of Expenditures of Federal and New York State Department of Transportation Financial Assistance and Notes thereto ..................................................................................... 118-119 Independent Auditor’s Report on Compliance for each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance ............................. 120-121 Independent Auditor’s Report on Compliance for the New York State Department of Transportation Financial Assistance Program and Report on Internal Control Over Compliance Required by New York State Codification of Rules and Regulations ....................... 122-123 Schedule of Findings and Questioned Costs .......................................................... 124 Independent Auditor’s Report on Compliance for the Passenger Facility Charge Program and Report on Internal Control over Compliance Required by the Federal Aviation Administration .................. 125-126 Schedule of Passenger Facility Charges Collected and Expended And Notes thereto ........................................................................................... 127 Passenger Facility Charge Program Schedule of Findings And Questioned Costs .................................................................................... 128 Biographies of the Members of the Albany County Airport Authority ........................... 129-131 Biographies of the Albany County Airport Authority Senior Staff ........................................ 132 ii Introduction ALBANY COUNTY AIRPORT AUTHORITY TELEPHONE: 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 16, 2020 The world has changed as a result of the effects of the deadly Coronavirus disease. Necessary and valiant efforts to contain the spread of the disease have acutely impacted the aviation industry and the world economy. Based on the impact of the COVID-19 on airport enplanements, the Authority is anticipating a decrease in activity in 2020; however, this did not detract from our 2019 results. According to the Bureau of Transportation Statistics (BTS) estimates, in 2019 U.S. airlines carried more than 925.5 million passengers, the highest total based on comparable records since 2003. Passenger traffic in 2019 increased 4.1%, 9.0%, and 12.3% from 2018, 2017, and 2016, respectively. These national results reflect the activity at the Albany International Airport as well. In 2019, the airport had a total of 1,518,969 enplanements, the highest total based on comparable records since 2005 and passenger traffic reached a new high for its seventh consecutive year. In 2020, we look forward to the completion of the five story 1,000 passenger garage, funded with a $22 million grant by Governor Cuomo, that will relieve the parking capacity issues of the recent years. In addition to the garage, the Authority also invested in and implemented a new parking control system that automated the parking revenue collection process. Other 2019 projects included improvements in the terminal restrooms, flooring, wayfinding signage, escalators, concessions, and the public address system. The close of 2019 marked the completion of the fourth year of the current five-year Airport Use and Lease Agreement and Common Cargo Carrier Airfield Use Agreement
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