FYE09 Aviation CAFR Final
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Comprehensive Annual Financial Repo rt For the years ended April 30, 2009 and 2008 Department of Aviation an Enterprise Fund of the City of Kansas City, Missouri 601 Brasilia Avenue, Kansas City, Missouri 64153 Comprehensive Annual Financial Report For the Department of Aviation an Enterprise Fund of the City of Kansas City, Missouri For the years ended April 30, 2009 and 2008 Prepared by: Finance and Accounting Division Eric B. Clevenger, CPA Deputy Director, Finance and Accounting Danelle J. Harrison General Ledger Manager Sam L. Carter, CPA, CGFM Aviation Treasurer 4 Introduction Governance Kansas City (the City) is a constitutionally chartered city and political legislation, the committee will forward a recommendation to the full subdivision of the State of Missouri, incorporated on June 3, 1850. City Council for approval. The City is the central city of a fifteen-county Metropolitan Statistical Area (MSA) situated at the confluence of the Kansas and Missouri The City Council is also responsible for appointing the City Manager rivers. who is responsible for implementing the policies approved by the City Council. The City Manager appoints and has oversight respon- The City is governed by a city council comprising a mayor and sibility for the Director of Aviation. twelve other elected members. The city council is elected to four- year terms of which only two terms may be consecutive. The Mayor The Director of Aviation (the Director) is responsible for the opera- and six of the council members are elected at large and six council tion and maintenance of the Department’s two airport facilities: members are elected by the residents of their districts. The City the Kansas City International Airport and the Charles B. Wheeler Council is responsible for establishing the City’s policy and oversee- Downtown Airport, and a portion of the Richards-Gebaur Intermodal ing the City’s affairs. Transportation Facility (formerly Richards-Gebaur Memorial Airport). The Director is also responsible for department staffing require- The Mayor appoints five members of the City Council to serve on ments and operates the department via nineteen divisions. Each the City’s Transportation and Infrastructure Committee. This com- division manager is responsible for budgeting and overseeing the mittee performs in-depth reviews of proposed Aviation Department daily operations of his/her respective division. legislation and objectives. Subsequent to the review of department CITY OF KANSAS CITY, MISSOURI Mark Funkhouser, Mayor City Council Members Council Members-at-Large District Council Members District 1 ....Deb Hermann District 1 ....Bill Skaggs* District 2 ....Ed Ford District 2 ....Russ Johnson** District 3 ....Melba Curls* District 3 ....Sharon Sanders Brooks District 4 ....Beth Gottstein District 4 ....Jan Marcason* District 5 ....Cindy Circo District 5 ....Terry Riley* District 6 ....Cathy Jolly District 6 ....John A. Sharp *Denotes member of Transportation & Infrastructure Committee **Denotes chairman of Transportation & Infrastructure Committee Wayne Cauthen, City Manager PICTURES: Page 1: Clockwise from top left: planes on runway at KCI; Ambassador Building; bird’s-eye view of terminals at KCI; Rental Car Facility escalator upon entrance; inside view of terminal at KCI. Page 3: Airside of terminal building at Charles B. Wheeler Downtown Airport. Page 5: Counter-clockwise from bottom left: Mark VanLoh, Director of Aviation; David Long, Deputy Director, Properties & Commercial Development; Kathy Whalen, Internal Auditor; Ian Redhead, Deputy Direcrtor, Operations & Maintenance; Stan Barrett, Assistant to the Director; Eric Clevenger, Deputy Director, Finance & Accounting; Phil Muncy, Assistant Director, Planning & Engineering; Tom McKenna, Assistant Director, Marketing. City of Kansas City, Missouri, Department of Aviation Comprehensive Annual Financial Report 5 Fiscal Years Ended April 30, 2009 and 2008 DEPARTMENT OF AVIATION Mark D. VanLoh, A.A.E. Director of Aviation Ian Redhead, C.M. Eric B. Clevenger, C.P.A. Deputy Director Deputy Director Operations and Maintenance Finance and Accounting David Graham Long, A.A.E. Deputy Director Properties and Commercial Development Philip Muncy, P.E. Thomas McKenna Assistant Director Assistant Director Planning & Engineering Marketing Stanley Barrett Kathleen Whalen, C.I.A. Assistant to the Director Internal Auditor 6 Introduction City of Kansas City, Missouri, Department of Aviation Comprehensive Annual Financial Report 7 Fiscal Years Ended April 30, 2009 and 2008 Introductory Section ....................................................9 Table IV-5 Schedule of Airlines Market Share .................................................... 78 Transmittal Letter ................................................................................11 Table IV-7 Organizational Chart .......................................................................... 16 Schedule of MCI Aircraft Operations ................................................. 82 Certificate of Achievement ................................................................. 17 Table IV-9 Schedule of Enplaned Cargo ............................................................. 83 Table IV-8a Financial Section .......................................................19 Schedule of Commercial Aircraft Landed Weight by Airline .............. 84 Management’s Discussion and Analysis ............................................ 21 Table IV-8b Financial Statements: Schedule of Commercial Aircraft Landings ........................................ 88 Statements of Net Assets ............................................................... 28 Table V-6 Schedule of Annual Parking Revenue by Facility .............................. 92 Statements of Revenues, Expenses and Changes in Net Assets.. 30 Table VI-10 Statements of Cash Flows .............................................................. 31 Schedule of Historical Airline Cost Per Enplaned Passenger ........... 93 Notes to Financial Statements ........................................................... 33 Table VI-2 Schedule of Total Airport System Revenue and Expenses ............... 94 Statistical Section ......................................................53 Table VI-3 Schedule of Historical Operating and Maintenance Expenses ......... 96 FINANCIAL TREND INFORMATION: Table VI-5 Schedule of Historical Net Assets and Cash Flows ........................... 54 Schedule of Historical Revenues ....................................................... 98 Schedule of Historical Revenues and Expenses ............................... 56 Table VI-13 Schedule of PFC Revenues ............................................................ 100 Schedule of Statements of Cash Flows ............................................. 58 Table VI-14 Schedule of Unrestricted and Restricted Cash and Schedule of PFC Bond Sufficiency Covenant ................................. 101 Investments ....................................................................................... 60 DEMOGRAPHIC AND ECONOMIC INFORMATION REVENUE CAPACITY INFORMATION: Schedule of Population .................................................................... 102 Schedule of Revenues, Expenses and Changes in Fund Net Assets by Facility ............................................................................... 62 Schedule of Principal Employers ..................................................... 103 Schedule of Grants ............................................................................ 63 OPERATING INFORMATION Schedule of Highest Paying Customers ............................................ 64 Schedule of Rates and Charges ...................................................... 104 Schedule of Most Popular Destinations ............................................. 65 Schedule of Facility Information ....................................................... 106 Schedule of Non-Stop Destinations ................................................... 66 Schedule of Department of Aviation Operating Expenditures by Schedule of Passenger and Cargo Airlines ....................................... 67 Division ............................................................................................ 108 Schedule of Airline Service ................................................................ 68 Schedule of Department of Aviation Full-Time and Equivalent Employees by Division ......................................................................110 DEBT CAPACITY INFORMATION: Schedule of Assets Capitalized ........................................................111 Schedule of Ratios of Outstanding Debt, Debt Service and Schedule of Construction In Progress ..............................................112 Debt Limits ....................................................................................... 70 Table VI-11 Schedule of Historical GARB Debt Service Coverage ...................... 72 Compliance Section ................................................. 113 Table IV-1 Independent Auditors’ Report ...........................................................114 Schedule of Annual Passenger Enplanements ................................. 74 Schedule of PFC Funds Collected and Expended ...........................116 Table IV-3 Notes to Schedule of PFC Funds Collected and Expended ............117 Schedule of Monthly Enplanements .................................................. 75 Table IV-3B Schedule of Changes in Monthly Enplanements vs. U.S. Domestic Monthly