Comprehensive Annual Financial Report
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COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Years Ended April 30, 2018 and 2017 Kansas City Aviation Department An Enterprise Fund of the City of Kansas City, Missouri COMPREHENSIVE ANNUAL FINANCIAL REPORT For the years ended April 30, 2018 and 2017 For the Kansas City Aviation Department An Enterprise Fund of the City of Kansas City, Missouri Rendering of proposed new single terminal at Kansas City International Airport Prepared by John Green, CPA, Chief Financial Officer Fred J. O’Neill, Finance & Accounting Manager Danelle J. Harrison, General Ledger Manager Finance and Accounting Staff GOVERNANCE Kansas City (the City) is a constitutionally chartered city and political subdivision of the State of Missouri, incorporated on June 3, 1850. The City is the central city of a fifteen-county Metropolitan Statistical Area (MSA) situated at the confluence of the Kansas and Missouri rivers. The City is governed by a city council comprising a mayor and twelve other elected members. The city council is elected to four-year terms of which only two terms may be consecutive. The Mayor and six of the council members are elected at large and six council members are elected by the residents of their districts. The City Council is responsible for establishing the City’s policy and overseeing the City’s affairs. CITY OF KANSAS CITY, MISSOURI MAYOR – Sly James CITY COUNCIL MEMBERS District Council Members: Council Members-At-Large: District 1 – Heather Hall District 1 – Scott Wagner District 2 – Dan Fowler 3, 4 District 2 – Teresa Loar 1 District 3 – Jermaine Reed 5 District 3 – Quinton Lucas 4 District 4 – Jolie Justus 2, 4 District 4 – Katheryn Shields District 5 – Alissia Canady District 5 – Lee Barnes, Jr. District 6 – Kevin McManus 6 District 6 – Scott Taylor 1Airport Committee Member; 2Airport Committee Chairman; 3Airport Committee Vice Chairman 4Transportation & Infrastructure Committee Member; 5Transportation & Infrastructure Committee Chairman; 6Transportation & Infrastructure Committee Vice Chairman CITY MANAGER – Troy Schulte The Mayor appoints members of the City Council to serve on the City’s Airport Committee and the Transportation and Infrastructure Committee. These committees perform in-depth reviews of proposed Aviation Department legislation and objectives. Subsequent to the review of department legislation, the committee will forward a recommendation to the full City Council for approval. The City Council is also responsible for appointing the City Manager, who is responsible for implementing the policies approved by the City Council. The City Manager appoints and has oversight responsibility for the Director of Aviation. The Director of Aviation (the Director) is responsible for the operation and maintenance of the Department’s two airport facilities: the Kansas City International Airport (MCI) and the Charles B. Wheeler Downtown Airport (MKC), and a portion of the Richards-Gebaur Intermodal Transportation Facility (formerly Richards-Gebaur Memorial Airport). The Director is also responsible for department staffing requirements and operates the department via 19 divisions. Each division manager is responsible for budgeting and overseeing the daily operations of his/her respective division. DEPARTMENT OF AVIATION . DIRECTOR – Patrick Klein DEPUTY DIRECTORS Ian Redhead – Operations and Maintenance John Green – Chief Financial Officer Justin B. Meyer – Marketing David Graham Long – Properties & Commercial Development Jade Liska – Planning & Engineering DIVISION MANAGERS Patrick Klein, Administration Bob Johnson, Operations Fred O’Neill, Finance & Accounting Stephen Newman, Airport Police Ed Kline, Purchasing & Warehouse Seth Smith, Field Maintenance David Jacobus, Information Technology Kenneth Williams, Fleet Maintenance Jade Liska, Planning & Engineering Cynthia Williams, Facilities-Custodial Lori Briggs, Employee Management Services Henry Linch, Facilities-Structural Justin Meyer, Marketing Shirley Winn, Bus Operations David Long, Commercial Development Sabrina Largen, Environmental Mgmt. Katy Sell, Parking Services Rahmaan Burns, Safety Jim Vitatoe, Overhaul Base Operations Akayla Jones, Human Relations Melissa Cooper, Downtown Airport (MKC) City of Kansas City, Missouri Department of Aviation Comprehensive Annual Financial Report Years Ended April 30, 2018 and 2017 Table of Contents Introductory Section Letter of Transmittal ............................................................................................................................ I Certificate of Achievement for Excellence in Financial Reporting .................................................. IX Organizational Chart ......................................................................................................................... X Financial Section Independent Auditor’s Report ........................................................................................................ A-1 Management’s Discussion and Analysis ........................................................................................ A-4 Basic Financial Statements Statements of Net Position ...................................................................................................... A-16 Statements of Revenues, Expenses and Changes in Net Position ........................................... A-18 Statements of Cash Flows ....................................................................................................... A-19 Notes to Financial Statements ................................................................................................. A-21 Required Supplementary Information (Unaudited) Schedule of the Fund’s Proportionate Share of the Net Pension Liability .............................. A-60 Schedule of the Fund Contributions ........................................................................................ A-61 Schedule of Funding Progress ................................................................................................. A-62 Statistical Section Financial Trends Schedule of Historical Net Position and Cash Flows Information ............................................ B-1 Schedule of Historical Revenues and Expenses ........................................................................ B-3 Schedule of Statements of Cash Flows ..................................................................................... B-5 Schedule of Unrestricted and Restricted Cash and Investments ............................................... B-7 Revenue Capacity Schedule of Revenues, Expenses and Changes in Net Position by Facility .............................. B-9 Schedule of Grants .................................................................................................................. B-10 Schedule of Highest Paying Customers .................................................................................. B-11 Schedule of Most Popular Destinations .................................................................................. B-12 Schedule of Non-Stop Destinations ........................................................................................ B-13 Schedule of Passenger and Cargo Airlines .............................................................................. B-14 Schedule of Airline Service ..................................................................................................... B-15 Debt Capacity Schedule of Ratios of Outstanding Debt, Debt Service and Debt Limits ................................ B-17 Schedule of Historical General Airport Revenue Bond Debt Service Coverage .................... B-19 Schedule of Annual Passenger Enplanements ......................................................................... B-21 Schedule of Monthly Enplanements ........................................................................................ B-22 Schedule of Changes in Monthly Enplanements ..................................................................... B-23 Schedule of Airlines Market Share ......................................................................................... B-25 Schedule of MCI Aircraft Operations ..................................................................................... B-29 Schedule of Enplaned Cargo ................................................................................................... B-30 Schedule of Commercial Aircraft Landed Weight by Airline ................................................. B-31 Schedule of Commercial Aircraft Landings ............................................................................ B-35 Schedule of Annual Parking Revenue by Facility ................................................................... B-39 Schedule of Historical Airline Cost Per Enplaned Passenger ................................................. B-40 Schedule of Total Airport System Revenue and Expenses ..................................................... B-41 Schedule of Historical Operating and Maintenance Expenses ................................................ B-43 Schedule of Historical Revenues ............................................................................................. B-45 Schedule of PFC Revenues ..................................................................................................... B-47 Schedule of PFC Bond Sufficiency Covenant ........................................................................ B-48 Demographic and Economic Information Schedule of Population ...........................................................................................................