6.11.13 Handouts.Pdf

042312-3 Updated

53 Regional Drive Concord, NH 03301 Phone: (603) 225-2978 Fax: (603) 225-0095 www.mjinc.com MEMORANDUM

TO: Thomas Rafter, AAE, Nantucket Memorial Airport

FROM: Zachary Staff, AICP, Airport Planner

DATE: June 4, 2013

SUBJECT: PFC Rate & Project Analysis Update

PROJECT NO.: 17874.00

Urgent For Review Please Comment Please Reply Please Recycle

As discussed as part of the Passenger Facility Charge (PFC) Application Kick-Off Meeting on April 5, 2013, several airports in the vicinity of Nantucket Memorial Airport charge PFCs to passengers. These airports include Barnstable Municipal Airport, Boston Logan International Airport, Tweed-New Haven Airport, and Bradley International Airport. According to the FAA, 355 airports charge PFCs, including 182 Primary-Non-Hub Airports. Each airport has the opportunity to select the PFC that is charged to passengers. Table 1 details the fees charged by airports across the county.

Table 1: Range of Approved Passenger Facility Charge Rates (As of April 30, 2013) PFC Rate Number of Airports $1 0 $2 2 $3 35* $4 2 $4.50 331* *15 airports are approved to collect Passenger Facility Charges of $3 and $4.50 in the future and are counted in both rows. Source: http://www.faa.gov/airports/pfc/monthly_reports/media/airports.pdf

As noted in the table above, no airports charge a PFC as low as $1, and two airports charge a PFC of $2. These airports are Barnstable Municipal Airport and LA/Ontario International Airport. There are also two airports that charge $4 per enplanements (Orlando Sanford International Airport and Fayetteville International Airport). The majority of other airports charge either $3 or the maximum, $4.50, and 15 have approvals to collect at both amounts into the future. It is important to note that additional considerations are necessary to collect PFCs at a rate greater than $3. At all airports, to collect a PFC of $4 or $4.50, it cannot be reasonably expected that the Airport Improvement Program (AIP) can fund the proposed projects, and that if projects proposed involve surface transportation of terminals, adequate provision for financing the airside needs of the airport must be identified. At airports designated as Medium Hub or Large Hub, additional requirements to collect PFCs at a rate of $4 or $4.50 must be met; however, any additional requirements are not applicable to Nantucket Memorial Airport due to its designation as a Non-Hub airport. A complete list of airports collecting PFCs, their rates, and the expiration date of their authorization to collect

1 PFC Rate & Project Analysis Update June 4, 2013

PFCs, can be found at the FAA’s PFC Monthly Reports website (http://www.faa.gov/airports/pfc/monthly_reports/media/airports.pdf).

The PFCs are collected by the air carriers at the time of the ticket purchase. Airlines are required to segregate the funds from other revenue, and are permitted to retain $0.11 per PFC collected for administrative costs. The administrative cost collected is set and is not dependent on the PFC rate that is charged by an airport. The issuing air carrier will collect the PFC on behalf of all other air carriers utilized on an itinerary in both directions of an itinerary. For example, if a traveler originated their roundtrip on Aer Lingus in Dublin, Aer Lingus would submit the PFC to Nantucket, even though the flight from Nantucket may be on a codeshare or interline partner of Aer Lingus. Airlines are required to remit PFCs to the airport on a monthly basis and should occur within the month after the revenue is recorded in the accounting system of the airline. The airport also has the opportunity to designate classes of carriers where a PFC would not be collected. This is limited to classes where the number of annual enplaned passengers is not more than one percent of the total number of passengers enplaned at the airport. A review of the 2011 Air Carrier Activity Information System (ACAIS) report indicates that within the Nonscheduled/On-Demand Air Carriers, Filing FAA Form 1800-31 (ATCO) category, 875 enplanements were recorded. This equates to approximately 0.005% of the annual enplanements. At most airports, this class of air carriers is excluded as a result of the administrative burden, for both the air carriers within this group and the airport, in relation to the amount of revenue generated from the class of air carriers. A copy of the 2011 ACAIS report is attached.

When considering a PFC rate for enplanements at Nantucket, the potential projects for which the PFC would be collected is an important consideration. Based on information from airport management, seven projects have been included in the preliminary considerations. The primary project is the local share of the recently recompleted renovation and expansion of the passenger terminal (determined by the FAA as 65% eligible for the use of AIP/PFC funds). If the entire local share of the terminal renovation and expansion utilized PFCs, the total combined AIP/PFC share would be approximately 58%, well below the eligibility threshold. With the addition of interest, $7,337,151 could be collected through PFCs to provide funds for the repayment of the annual debt service. All projects included in the initial analysis are identified in Table 2.

Table 2: Potential Projects for PFC Collections Project Title PFC/Local Share Total Project Cost $4,500,000 (Bond Capital) Terminal Renovation & Expansion $31,950,826 $2,837,151 (Interest) Rehabilitate Runway Lighting $23,886 $955,444 Install Miscellaneous NAVAIDS $556 $22,222 Install Airfield Guidance Signs $833 $33,333 Master Plan Update $18,750 $750,000 Widen Taxiway D & Remove $9,375 $375,000 Runway 33 Pad PFC Application & Administration $35,000 $35,000

PFC Rate & Project Analysis Update June 4, 2013

With the inclusion of all projects, the PFC application would request $7,425,551. All projects would collect as “Impose & Use”, indicating that a subsequent PFC application would be unnecessary and that the airport could utilize PFCs for approved projects immediately. Per the request of the airport, an aircraft deicing vehicle may be eligible for PFC funds if the vehicle will be owned and operated by the airport and available for use by any aircraft, and could be included by the airport if desired as part of this application.

When compared with potential PFC collection rates, in collaboration with forecasted future enplanements (anticipated with a conservative annual growth rate of 0.5%), the amount of time required to complete the collections varies, as summarized in Table 3 and displayed in greater detail in the attached documents.

Table 3: Comparison of PFC Rates & Expected Charge Expiration Dates PFC Rate Charge Expiration Date $2 April 1, 2037 $3 April 1, 2029 $4 May 1, 2025 $4.50 February 1, 2024 NOTE: Charge Expiration Dates assume PFC collections begin on December 1, 2013.

Due to the length of PFC collections, over 10 years in all scenarios, it is recommended that the Nantucket Memorial Airport consider collecting PFCs only for the local share of the renovation of the passenger terminal renovation and expansion and for the PFC Application & Administration costs. This will ease the PFC application process and review by the FAA and air carriers serving the airport, but will provide the necessary leverage for the airport to utilize PFCs for the long-term debt service payments associated with the terminal renovation and expansion. As the end of PFC collections approach, the airport will be able to apply to collect PFCs for additional projects. Further, while the airport could charge a PFC of $2 and complete collections just after the completion of debt service payments in 2036, it is recommended that the airport consider a PFC of $3 or greater to reduce the period of PFC collections, with an end date before 2030. If, during the air carrier coordination or public notice process it becomes necessary to change the proposed rate of PFC collections, decreasing the rate will typically not involve any further coordination effort or additions to the application timeline.

Once the airport has finalized their selection of projects that will be included as part of the PFC application, McFarland Johnson will organize a teleconference with the airport and FAA New England Region’s PFC Specialist, to discuss the projects and the timeline for the upcoming application and to gain any early comments. While a decision on the collection rate is not required prior to the teleconference with FAA, it would be required shortly thereafter in order to begin completing the necessary documentation for FAA review prior to commencing the air carrier coordination process.

FAA - Office Of Airports Report Date 06/03/2013 Source CY 2011FAA ACAIS Enplanements by Air Carrier for Calendar Year 2011 Nantucket Memorial (ACK) ACK Thomas Rafter30 Airport Road, Nantucket, MA 02554

SCHEDULE TYPE |------ENPLANEMENTS ------| CARRIER NAME (CARRIER CODE) SCHEDULED NONSCHEDULED TOTAL

ATCO - Nonscheduled/On-Demand Air Carriers, filing FAA Form 1800-31. AirDialog LLC (L41A) 0 14 14 Blue Bell Air LLC (N22A) 0 5 5 Heritage Aviation Inc. (IGXA) 0 29 29 Meridian Air Group, Inc. (K1RA) 0 5 5 Priester Aviation LLC (PRIA) 0 2 2 Reliant Air Charter, Inc. (QREA) 0 820 820 ATCO Total 0 875 875

CAC - Commuters or Small Certificated Air Carriers, filing T-100. Cape Air (9K) 66,857 0 66,857 Commutair Aka Champlain Enterprises, Inc. (C5) 5,299 0 5,299 Island Airlines LLC (1DQ) 65,147 365 65,512 Tradewind Aviation LLC (04Q) 833 1,396 2,229 CAC Total 138,136 1,761 139,897

CRAC - Large Certificated Air Carriers, filing T-100. Air Wisconsin Airlines Corporation (ZW) 4,098 0 4,098 Avjet Corporation (0WQ) 0 2 2 Jetblue Airways Corporation (B6) 15,681 38 15,719 Mesaba Airlines (XJ) 4,022 0 4,022 Pinnacle Airlines, Inc. (9E) 4,725 0 4,725 CRAC Total 28,526 40 28,566

FFC - Foreign Air Carriers, filing T-100(f). Chartright Air Inc. (13Q) 0 10 10 Tag Aviation (Uk) Ltd. (0QQ) 0 4 4 FFC Total 0 14 14 SITE TOTAL 166,662 2,690 169,352

Selection Criteria: , LOCID: ACK, Year: 2011 Page 1 of 1 ACK PFC Cash Flow Analysis PFC #1 Assumptions (Calendar Year Basis) CY-12 Enplanements (actual) 175,420 Earned Interest Rate: 0.50% Annual Enplanement Growth Rate: 0.5% PFC Yield 90.0% Carrier Handling Fee: $ 0.11 PFC Collection Rate: $ 2.00

Forecast Enplanements Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Balance Revenue Enplanements 175,420 176,297 177,179 178,064 178,955 179,850 180,749 181,653 182,561 183,474 184,391 185,313 186,240 187,171 188,107 189,047 189,992 190,942 191,897 192,856 193,821 194,790 195,764 196,743 197,726 198,715 PFC Enplanements 157,878 158,667 159,461 160,258 161,059 161,865 162,674 163,487 164,305 165,126 165,952 166,782 167,616 168,454 169,296 170,142 170,993 171,848 172,707 173,571 174,439 175,311 176,187 177,068 177,954 178,843 Average Monthly PFC Enplanements 13,157 13,222 13,288 13,355 13,422 13,489 13,556 13,624 13,692 13,761 13,829 13,898 13,968 14,038 14,108 14,179 14,249 14,321 14,392 14,464 14,537 14,609 14,682 14,756 14,829 14,904

PFC Duration & Rate Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Balance Months Collecting 0 1 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 3 Effective PFC Rate (net) $ - $ 0.16 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 1.89 $ 0.47

PFC Revenue Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Balance Collections $ 24,990 $ 301,381 $ 302,888 $ 304,402 $ 305,924 $ 307,454 $ 308,991 $ 310,536 $ 312,089 $ 313,649 $ 315,217 $ 316,793 $ 318,377 $ 319,969 $ 321,569 $ 323,177 $ 324,793 $ 326,417 $ 328,049 $ 329,689 $ 331,338 $ 332,994 $ 334,659 $ 336,333 $ 84,504 Earned Interest $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Total Revenue (End Of Year) $24,990 $301,381 $302,888 $304,402 $305,924 $307,454 $308,991 $310,536 $312,089 $313,649 $315,217 $316,793 $318,377 $319,969 $321,569 $323,177 $324,793 $326,417 $328,049 $329,689 $331,338 $332,994 $334,659 $336,333 $84,504

Cumulative Revenue $ - $ 24,990 $ 326,371 $ 629,259 $ 933,661 $ 1,239,585 $ 1,547,039 $ 1,856,030 $ 2,166,566 $ 2,478,654 $ 2,792,303 $ 3,107,521 $ 3,424,314 $ 3,742,691 $ 4,062,661 $ 4,384,230 $ 4,707,407 $ 5,032,200 $ 5,358,617 $ 5,686,665 $ 6,016,355 $ 6,347,692 $ 6,680,686 $ 7,015,346 $ 7,351,678 $ 7,436,182 Average Monthly Collection $ 24,990 $ 25,115 $ 25,241 $ 25,367 $ 25,494 $ 25,621 $ 25,749 $ 25,878 $ 26,007 $ 26,137 $ 26,268 $ 26,399 $ 26,531 $ 26,664 $ 26,797 $ 26,931 $ 27,066 $ 27,201 $ 27,337 $ 27,474 $ 27,611 $ 27,750 $ 27,888 $ 28,028 $ 28,168

Project Disbursements 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Total Disbursements PFC Use Approved

Passenger Terminal $124,515 $ 300,281 $ 299,531 $ 302,131 $ 299,319 $ 300,569 $ 301,669 $ 301,944 $ 297,744 $ 302,144 $ 299,644 $ 301,894 $ 300,294 $ 298,494 $ 301,494 $ 298,863 $ 300,788 $ 302,038 $ 302,588 $ 297,688 $ 302,281 $ 301,181 $ 299,306 $ 301,856 $ 298,895 $7,337,151 Rehabilitate Runway Lighting $ 23,886 $ 23,886 Install Miscellaneous NAVAIDS $ 556 $ 556 Install Airfield Guideance Signs $ 833 $ 833 Master Plan Update $ 18,750 $ 18,750 Widen Taxiway D & Remove Runway 33 Pad $ 9,375 $ 9,375 PFC Application & Administration $ 35,000 $ 35,000 PFC Application 1 Totals $124,515 $388,681 $299,531 $302,131 $299,319 $300,569 $301,669 $301,944 $297,744 $302,144 $299,644 $301,894 $300,294 $298,494 $301,494 $298,863 $300,788 $302,038 $302,588 $297,688 $302,281 $301,181 $299,306 $301,856 $298,895 $0 $7,425,551 Cash Flow Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Total Disbursements Balance Program Disbursements $ - $124,515 $388,681 $299,531 $302,131 $299,319 $300,569 $301,669 $301,944 $297,744 $302,144 $299,644 $301,894 $300,294 $298,494 $301,494 $298,863 $300,788 $302,038 $302,588 $297,688 $302,281 $301,181 $299,306 $301,856 $298,895 $0 $7,425,551

Annual Balance $ (124,515) $ (363,691) $ 1,850 $ 757 $ 5,083 $ 5,355 $ 5,785 $ 7,047 $ 12,792 $ 9,945 $ 14,005 $ 13,323 $ 16,499 $ 19,883 $ 18,475 $ 22,706 $ 22,389 $ 22,755 $ 23,829 $ 30,361 $ 27,408 $ 30,157 $ 33,688 $ 32,803 $ 37,438 $ 84,504

Unliquidated Balance (End Of Year) $ (124,515) $ (488,206) $ (486,356) $ (485,599) $ (480,516) $ (475,161) $ (469,376) $ (462,329) $ (449,537) $ (439,593) $ (425,588) $ (412,264) $ (395,765) $ (375,882) $ (357,406) $ (334,700) $ (312,311) $ (289,556) $ (265,727) $ (235,367) $ (207,958) $ (177,802) $ (144,114) $ (111,310) $ (73,873) $ 10,631 ACK PFC Cash Flow Analysis PFC #1 Assumptions (Calendar Year Basis) CY-12 Enplanements (actual) 175,420 Earned Interest Rate: 0.50% Annual Enplanement Growth Rate: 0.5% PFC Yield 90.0% Carrier Handling Fee: $ 0.11 PFC Collection Rate: $ 3.00

Forecast Enplanements Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Balance Revenue Enplanements 175,420 176,297 177,179 178,064 178,955 179,850 180,749 181,653 182,561 183,474 184,391 185,313 186,240 187,171 188,107 189,047 189,992 190,942 191,897 192,856 193,821 194,790 195,764 196,743 197,726 PFC Enplanements 157,878 158,667 159,461 160,258 161,059 161,865 162,674 163,487 164,305 165,126 165,952 166,782 167,616 168,454 169,296 170,142 170,993 171,848 172,707 173,571 174,439 175,311 176,187 177,068 177,954 Average Monthly PFC Enplanements 13,157 13,222 13,288 13,355 13,422 13,489 13,556 13,624 13,692 13,761 13,829 13,898 13,968 14,038 14,108 14,179 14,249 14,321 14,392 14,464 14,537 14,609 14,682 14,756 14,829

PFC Duration & Rate Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Balance Months Collecting 0 1 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 3 0 0 0 0 0 0 0 Effective PFC Rate (net) $ - $ 0.24 $ 2.89 $ 2.89 $ 2.89 $ 2.89 $ 2.89 $ 2.89 $ 2.89 $ 2.89 $ 2.89 $ 2.89 $ 2.89 $ 2.89 $ 2.89 $ 2.89 $ 2.89 $ 0.72 $ - $ - $ - $ - $ - $ - $ -

PFC Revenue Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Balance Collections $ 38,212 $ 460,842 $ 463,146 $ 465,461 $ 467,789 $ 470,128 $ 472,478 $ 474,841 $ 477,215 $ 479,601 $ 481,999 $ 484,409 $ 486,831 $ 489,265 $ 491,712 $ 494,170 $ 124,160 $ - $ - $ - $ - $ - $ - $ - Earned Interest $ - $ - $ - $ - $ 67 $ 904 $ 1,751 $ 2,612 $ 3,511 $ 4,404 $ 5,325 $ 6,253 $ 7,204 $ 8,182 $ 9,162 $ 10,172 $ 11,190 $ 10,356 $ 8,895 $ 7,451 $ 5,977 $ 4,501 $ 3,027 $ 1,533

Total Revenue (End Of Year) $38,212 $460,842 $463,146 $465,461 $467,856 $471,032 $474,229 $477,453 $480,726 $484,005 $487,324 $490,661 $494,035 $497,447 $500,873 $504,342 $135,350 $10,356 $8,895 $7,451 $5,977 $4,501 $3,027 $1,533

Cumulative Revenue $ - $ 38,212 $ 499,054 $ 962,200 $ 1,427,661 $ 1,895,517 $ 2,366,549 $ 2,840,778 $ 3,318,231 $ 3,798,956 $ 4,282,961 $ 4,770,285 $ 5,260,947 $ 5,754,982 $ 6,252,429 $ 6,753,302 $ 7,257,644 $ 7,392,994 $ 7,403,350 $ 7,412,245 $ 7,419,697 $ 7,425,673 $ 7,430,174 $ 7,433,201 $ 7,434,734 Average Monthly Collection $ - $ 38,212 $ 38,403 $ 38,595 $ 38,788 $ 38,982 $ 39,177 $ 39,373 $ 39,570 $ 39,768 $ 39,967 $ 40,167 $ 40,367 $ 40,569 $ 40,772 $ 40,976 $ 41,181 $ 41,387 $ - $ - $ - $ - $ - $ - $ -

Project Disbursements 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Total Disbursements PFC Use Approved

Passenger Terminal $124,515 $ 300,281 $ 299,531 $ 302,131 $ 299,319 $ 300,569 $ 301,669 $ 301,944 $ 297,744 $ 302,144 $ 299,644 $ 301,894 $ 300,294 $ 298,494 $ 301,494 $ 298,863 $ 300,788 $ 302,038 $ 302,588 $ 297,688 $ 302,281 $ 301,181 $ 299,306 $ 301,856 $ 298,895 $7,337,151 Rehabilitate Runway Lighting $ 23,886 $ 23,886 Install Miscellaneous NAVAIDS $ 556 $ 556 Install Airfield Guideance Signs $ 833 $ 833 Master Plan Update $ 18,750 $ 18,750 Widen Taxiway D & Remove Runway 33 Pad $ 9,375 $ 9,375 PFC Application & Administration $ 35,000 $ 35,000 PFC Application 1 Totals $124,515 $388,681 $299,531 $302,131 $299,319 $300,569 $301,669 $301,944 $297,744 $302,144 $299,644 $301,894 $300,294 $298,494 $301,494 $298,863 $300,788 $302,038 $302,588 $297,688 $302,281 $301,181 $299,306 $301,856 $298,895 $7,425,551 Cash Flow Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Total Disbursements Balance Program Disbursements $ - $124,515 $388,681 $299,531 $302,131 $299,319 $300,569 $301,669 $301,944 $297,744 $302,144 $299,644 $301,894 $300,294 $298,494 $301,494 $298,863 $300,788 $302,038 $302,588 $297,688 $302,281 $301,181 $299,306 $301,856 $298,895 $7,425,551

Annual Balance $ (124,515) $ (350,469) $ 161,311 $ 161,015 $ 166,142 $ 167,287 $ 169,363 $ 172,285 $ 179,709 $ 178,582 $ 184,361 $ 185,430 $ 190,367 $ 195,541 $ 195,953 $ 202,010 $ 203,554 $ (166,688) $ (292,232) $ (288,793) $ (294,830) $ (295,204) $ (294,805) $ (298,829) $ (297,362)

Unliquidated Balance (End Of Year) $ (124,515) $ (474,984) $ (313,673) $ (152,658) $ 13,484 $ 180,771 $ 350,134 $ 522,419 $ 702,128 $ 880,709 $ 1,065,070 $ 1,250,500 $ 1,440,868 $ 1,636,409 $ 1,832,362 $ 2,034,372 $ 2,237,926 $ 2,071,238 $ 1,779,006 $ 1,490,213 $ 1,195,384 $ 900,179 $ 605,374 $ 306,545 $ 9,183 ACK PFC Cash Flow Analysis PFC #1 Assumptions (Calendar Year Basis) CY-12 Enplanements (actual) 175,420 Earned Interest Rate: 0.50% Annual Enplanement Growth Rate: 0.5% PFC Yield 90.0% Carrier Handling Fee: $ 0.11 PFC Collection Rate: $ 4.00

PFC Duration & Rate Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Balance Months Collecting 0 1 12 12 12 12 12 12 12 12 12 12 12 4 Effective PFC Rate (net) $ - $ 0.32 $ 3.89 $ 3.89 $ 3.89 $ 3.89 $ 3.89 $ 3.89 $ 3.89 $ 3.89 $ 3.89 $ 3.89 $ 3.89 $ 1.30 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

PFC Revenue Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Balance Collections $ 51,435 $ 620,302 $ 623,404 $ 626,521 $ 629,653 $ 632,802 $ 635,966 $ 639,145 $ 642,341 $ 645,553 $ 648,781 $ 652,025 $ 218,428 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Earned Interest $ - $ - $ - $ 901 $ 2,542 $ 4,200 $ 5,877 $ 7,576 $ 9,321 $ 11,069 $ 12,854 $ 14,652 $ 16,484 $ 16,166 $ 14,740 $ 13,319 $ 11,882 $ 10,431 $ 8,970 $ 7,527 $ 6,053 $ 4,577 $ 3,103 $ 1,610

Total Revenue (End Of Year) $51,435 $620,302 $623,404 $627,422 $632,195 $637,002 $641,842 $646,722 $651,662 $656,622 $661,634 $666,677 $234,912 $16,166 $14,740 $13,319 $11,882 $10,431 $8,970 $7,527 $6,053 $4,577 $3,103 $1,610

Cumulative Revenue $ - $ 51,435 $ 671,737 $ 1,295,141 $ 1,922,563 $ 2,554,758 $ 3,191,760 $ 3,833,602 $ 4,480,324 $ 5,131,986 $ 5,788,608 $ 6,450,242 $ 7,116,919 $ 7,351,831 $ 7,367,998 $ 7,382,737 $ 7,396,056 $ 7,407,938 $ 7,418,369 $ 7,427,339 $ 7,434,865 $ 7,440,918 $ 7,445,495 $ 7,448,599 $ 7,450,209 Average Monthly Collection $ 51,435 $ 51,692 $ 51,950 $ 52,210 $ 52,471 $ 52,733 $ 52,997 $ 53,262 $ 53,528 $ 53,796 $ 54,065 $ 54,335 $ 54,607 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Project Disbursements 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Total Disbursements PFC Use Approved

Passenger Terminal $124,515 $300,281 $ 299,531 $ 302,131 $ 299,319 $ 300,569 $ 301,669 $ 301,944 $ 297,744 $ 302,144 $ 299,644 $ 301,894 $ 300,294 $ 298,494 $ 301,494 $ 298,863 $ 300,788 $ 302,038 $ 302,588 $ 297,688 $ 302,281 $ 301,181 $ 299,306 $ 301,856 $ 298,895 $7,337,151 Rehabilitate Runway Lighting $23,886 $ 23,886 Install Miscellaneous NAVAIDS $556 $ 556 Install Airfield Guideance Signs $833 $ 833 Master Plan Update $18,750 $ 18,750 Widen Taxiway D & Remove Runway 33 Pad $9,375 $ 9,375 PFC Application & Administration $ 35,000 $ 35,000 PFC Application 1 Totals $124,515 $388,681 $299,531 $302,131 $299,319 $300,569 $301,669 $301,944 $297,744 $302,144 $299,644 $301,894 $300,294 $298,494 $301,494 $298,863 $300,788 $302,038 $302,588 $297,688 $302,281 $301,181 $299,306 $301,856 $298,895 $7,425,551 Cash Flow Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Total Disbursements Balance Program Disbursements $ - $124,515 $388,681 $299,531 $302,131 $299,319 $300,569 $301,669 $301,944 $297,744 $302,144 $299,644 $301,894 $300,294 $298,494 $301,494 $298,863 $300,788 $302,038 $302,588 $297,688 $302,281 $301,181 $299,306 $301,856 $298,895 $7,425,551

Annual Balance ($124,515) $ (337,246) $ 320,771 $ 321,273 $ 328,103 $ 331,626 $ 335,333 $ 339,898 $ 348,978 $ 349,518 $ 356,978 $ 359,740 $ 366,383 $ (63,582) $ (285,328) $ (284,123) $ (287,469) $ (290,156) $ (292,157) $ (288,718) $ (294,754) $ (295,128) $ (294,729) $ (298,753) $ (297,285)

Unliquidated Balance (End Of Year) ($124,515) $ (461,761) $ (140,990) $ 180,283 $ 508,386 $ 840,012 $ 1,175,345 $ 1,515,243 $ 1,864,221 $ 2,213,739 $ 2,570,717 $ 2,930,457 $ 3,296,840 $ 3,233,258 $ 2,947,931 $ 2,663,807 $ 2,376,338 $ 2,086,182 $ 1,794,025 $ 1,505,307 $ 1,210,552 $ 915,424 $ 620,695 $ 321,943 $ 24,658 ACK PFC Cash Flow Analysis PFC #1 Assumptions (Calendar Year Basis) CY-12 Enplanements (actual) 175,420 Earned Interest Rate: 0.50% Annual Enplanement Growth Rate: 0.5% PFC Yield 90.0% Carrier Handling Fee: $ 0.11 PFC Collection Rate: $ 4.50

PFC Duration & Rate Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Balance Months Collecting 0 1 12 12 12 12 12 12 12 12 12 12 1 0 Effective PFC Rate (net) $ - $ 0.37 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 4.39 $ 0.37 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

PFC Revenue Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Balance Collections $ 58,046 $ 700,033 $ 703,533 $ 707,050 $ 710,586 $ 714,139 $ 717,709 $ 721,298 $ 724,904 $ 728,529 $ 732,171 $ 61,319 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Earned Interest $ - $ - $ - $ 1,734 $ 3,781 $ 5,850 $ 7,942 $ 10,060 $ 12,228 $ 14,403 $ 16,620 $ 18,854 $ 17,754 $ 16,350 $ 14,924 $ 13,504 $ 12,068 $ 10,618 $ 9,158 $ 7,716 $ 6,243 $ 4,768 $ 3,295 $ 1,803

Total Revenue (End Of Year) $58,046 $700,033 $703,533 $708,784 $714,367 $719,989 $725,651 $731,358 $737,133 $742,932 $748,791 $80,174 $17,754 $16,350 $14,924 $13,504 $12,068 $10,618 $9,158 $7,716 $6,243 $4,768 $3,295 $1,803

Cumulative Revenue $ - $ 58,046 $ 758,078 $ 1,461,611 $ 2,170,395 $ 2,884,762 $ 3,604,751 $ 4,330,402 $ 5,061,760 $ 5,798,892 $ 6,541,824 $ 7,290,616 $ 7,370,789 $ 7,388,543 $ 7,404,893 $ 7,419,817 $ 7,433,321 $ 7,445,389 $ 7,456,007 $ 7,465,166 $ 7,472,881 $ 7,479,124 $ 7,483,892 $ 7,487,188 $ 7,488,990 Average Monthly Collection $ 58,046 $ 58,336 $ 58,628 $ 58,921 $ 59,215 $ 59,512 $ 59,809 $ 60,108 $ 60,409 $ 60,711 $ 61,014 $ 61,319 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Project Disbursements 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Total Disbursements PFC Use Approved

Passenger Terminal $124,515 $ 300,281 $ 299,531 $ 302,131 $ 299,319 $ 300,569 $ 301,669 $ 301,944 $ 297,744 $ 302,144 $ 299,644 $ 301,894 $ 300,294 $ 298,494 $ 301,494 $ 298,863 $ 300,788 $ 302,038 $ 302,588 $ 297,688 $ 302,281 $ 301,181 $ 299,306 $ 301,856 $ 298,895 $7,337,151 Rehabilitate Runway Lighting $ 23,886 $ 23,886 Install Miscellaneous NAVAIDS $ 556 $ 556 Install Airfield Guideance Signs $ 833 $ 833 Master Plan Update $ 18,750 $ 18,750 Widen Taxiway D & Remove Runway 33 Pad $ 9,375 $ 9,375 PFC Application & Administration $ 35,000 $ 35,000 PFC Application 1 Totals $124,515 $388,681 $299,531 $302,131 $299,319 $300,569 $301,669 $301,944 $297,744 $302,144 $299,644 $301,894 $300,294 $298,494 $301,494 $298,863 $300,788 $302,038 $302,588 $297,688 $302,281 $301,181 $299,306 $301,856 $298,895 $7,425,551 Cash Flow Beginning 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Total Disbursements Balance Program Disbursements $ - $124,515 $388,681 $299,531 $302,131 $299,319 $300,569 $301,669 $301,944 $297,744 $302,144 $299,644 $301,894 $300,294 $298,494 $301,494 $298,863 $300,788 $302,038 $302,588 $297,688 $302,281 $301,181 $299,306 $301,856 $298,895 $7,425,551

Annual Balance $ (124,515) $ (330,635) $ 400,502 $ 401,402 $ 409,465 $ 413,798 $ 418,320 $ 423,707 $ 433,614 $ 434,989 $ 443,288 $ 446,897 $ (220,120) $ (280,740) $ (285,144) $ (283,939) $ (287,284) $ (289,970) $ (291,970) $ (288,530) $ (294,565) $ (294,938) $ (294,538) $ (298,561) $ (297,092)

Unliquidated Balance (End Of Year) $ (124,515) $ (455,150) $ (54,649) $ 346,753 $ 756,218 $ 1,170,016 $ 1,588,336 $ 2,012,043 $ 2,445,657 $ 2,880,645 $ 3,323,933 $ 3,770,831 $ 3,550,710 $ 3,269,970 $ 2,984,826 $ 2,700,887 $ 2,413,603 $ 2,123,633 $ 1,831,663 $ 1,543,134 $ 1,248,568 $ 953,630 $ 659,092 $ 360,532 $ 63,439