Albany County Airport Authority
Total Page:16
File Type:pdf, Size:1020Kb
Albany County Airport Authority Albany County Airport Authority Administration Building, Suite 200 Albany, NY 12211-1057 518-242-2222 www.albanyairport.com Comprehensive Annual Financial Report Year Ended December 31, 2008 A Component Unit of the the County of Albany Town of Colonie, New York Cover MASTER.indd 1 3/19/2009 3:47:34 PM Albany County Airport Authority As of December 31, 2008 Authority Board Members David E. Langdon Richard J. Sherwood, Esq. Chair Vice-Chair Term Expires: December 31, 2008 Term Expires: December 31, 2008 Daniel M. Sleasman, Esq. Elliot A. Shaw Henry E. Dennis, Jr. Treasurer Secretary Member Term Expires: December 31, 2008 Term Expires: December 31, 2009 Term Expires: December 31, 2007 John A. Graziano, Jr. Dorsey M. Whitehead Member Member Term Expires: December 31, 2009 Term Expires: December 31, 2008 Authority Management John A. O’Donnell, PE Chief Executive Officer William J. O’Reilly, CPA Chief Financial Officer Cover MASTER.indd 2 3/19/2009 3:47:36 PM ALBANY COUNTY AIRPORT AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2008 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 ................................................................................... 3-11 Organizational Chart ..................................................................................... 12 Certificate of Achievement for Excellence in Financial Reporting ................. 13 II. FINANCIAL SECTION Independent Auditor’s Report................................................................... 18-19 Management’s Discussion and Analysis .................................................. 20-33 Financial Statements: Comparative Statements of Net Assets ............................................... 34-35 Comparative Statements of Revenues, Expenses and Changes in Net Assets......................................................................... 36 Comparative Statements of Cash Flows ................................................... 37 Notes to Financial Statements ............................................................. 38-69 Supplementary Information: Schedule of Debt Service Requirements to Maturity............................ 72-73 Schedule of Governmental Payments and Services ................................. 74 III. STATISTICAL SECTION Total Annual Revenues, Expenses and Changes in Net Assets.............. 76-77 Changes in Cash and Cash Equivalents.................................................. 78-79 Principal Revenue Sources and Cost per Enplaned Passenger .............. 80-81 Ratios of Outstanding Debt ...................................................................... 82-83 Revenue Bond Debt Service.................................................................... 84-85 Population in the Air Trade Area ................................................................... 86 Major Employers in Air Trade Area ............................................................... 87 Colleges and Universities in the Air Trade Area............................................ 88 Airport Information......................................................................................... 89 i Enplaned Passengers .............................................................................. 90-91 Airline Landed Weights ............................................................................ 92-93 Aircraft Operations ................................................................................... 94-96 Airlines Serving the Albany International Airport ........................................... 97 Scheduled Jet Airline Service........................................................................ 98 Scheduled Commuter Airline Service............................................................ 99 Primary Origination and Destination Passenger Markets............................ 100 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 ................................................... 102-103 Schedule of Expenditures of Federal and New York State Department of Transportation Financial Assistance and Notes thereto ....................................................................... 104-105 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 ................... 106-107 Independent Auditors’ Report on Compliance with Requirements Applicable to State Transportation Assistance Expended and on Internal Control over Compliance............................................. 108-109 Schedule of Findings and Questioned Costs .......................................... 110 Independent Auditors’ Report on Compliance with Requirements Applicable to the Passenger Facility Charge Program and on Internal Control over Compliance............................................. 111-112 Schedule of Passenger Facility Charges Collected and Expended And Notes thereto ............................................................................... 113 Passenger Facility Charge Program Schedule of Findings And Questioned Costs......................................................................... 114 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 March 2, 2009 Chairman’s Message Air travelers and airlines throughout the world found 2008 to be one of the worst years on record. The seemingly endless rise in the price of crude oil to $140 a barrel drove the cost of aviation fuel to record highs. The increase was quickly passed on to travelers in the form of higher fares and a number of new fees for checked baggage and basic food service. As enplanements fell, driven by higher ticket prices, the airlines responded by reducing service, dropping flights and flying smaller aircraft. The economic downturn was felt at Albany International Airport as enplanements dropped by 4.2% over 2007. A change in aircraft size from full size jets to regional jets and turbo props reduced the Airport’s landed weight and associated revenue. Further evidence of contraction in the airline industry became evident in November, when, after serving Albany for 80 years, American Airlines terminated service. However, by monitoring expenses, adjusting Airport parking rates, and continuing to obtain capital grant funding, the Authority completed the fiscal year with a $4 million increase in net assets. There were a number of highlights during the year. We were proud to welcome Cape Air to Albany and passengers reacted positively to Southwest Airlines’ addition of a direct flight to Fort Lauderdale. The airport completed a project to add two new escalators in the main lobby area along with an overall renovation to the ticketing and baggage claim areas. Also, the TSA completed a multi-million dollar project providing a more modern baggage security system. Our “green” initiative was expanded with the introduction of electric aircraft tugs and baggage loaders by Delta Airlines. The FAA awarded the airport a $600,000 grant for the purchase of a glycol recovery vehicle and a runway deicing vehicle to help ensure the continued safe operation of the Airport’s runways and ramp areas during winter storms. The Airport sought to provide our passengers with new and exciting food venues. HMSHost will invest $3 million to reconstruct six concessions and introduce new themes such as Saratoga Silks, Brioche Dorée, Starbuck’s and Dunkin Donuts to the Airport’s growing selection of fast food and fine dinning venues. The spotlight was focused on the Airport as Mercedes once again chose our airport as the international launching site for the introduction of many of its new SUV models. Over 100 automotive reporters from around the world were flown by charter to Albany where they picked up test cars for trips through the Adirondacks and Green Mountains. As we conclude the year, the nation’s economy suggests that further adjustments will be necessary within the airline industry and the operation of the nation’s airports. With that caveat in mind, we will continue to be diligent in our stewardship of the Albany International Airport and maintain our goal of providing the region’s business and leisure travelers with outstanding service. 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: 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 March 2, 2009 TO THE MEMBERS OF THE