Introduction AIRPORT CORPORATION BUDGET FOR FISCAL YEAR 2016

INTRODUCTION The Rhode Island Airport Corporation (RIAC) was created by the Rhode Island Port Authority and Economic Development Corporation, now the Rhode Island Commerce Corporation (Commerce RI), on December 9, 1992, as a subsidiary public corporation, governmental agency and public instrumentality, having a distinct legal existence from the State of Rhode Island (State), and Commerce RI, and having many of the same powers and purposes of Commerce RI. Pursuant to its Articles of Incorporation, RIAC is empowered to undertake the planning, development, management, acquisition, ownership, operations, repair, construction, reconstruction, rehabilitation, renovation, improvement, maintenance, sale, lease, or other disposition of any “airport facility” as defined in Rhode Island General Law.

Pursuant to the Lease and Operating Agreement by and between the State of Rhode and Providence Plantations, the Rhode Island Department of Transportation, and RIAC dated as of June 25, 1993, RIAC leased, initially for a period of thirty (30) years, all of the airports which previously had been under the jurisdiction of the Department of Transportation of the State of Rhode Island. The Lease Agreement was extended in Fiscal Year 2008 through June 30, 2038. The rental rate per the lease is $1 per year. Pursuant to the Lease Agreement, effective July 1, 1993, the State transferred to RIAC all of the personal property and other assets of the State located at or relating to the six airports.

RIAC operates on a July 1 to June 30 fiscal year (FY) basis. RIAC was created to operate as a self-sustaining entity and receives no funds from the State’s General Purpose Fund for the operation and maintenance of any of the six airports under its jurisdiction. RIAC has utilized State General Obligation (G.O.) Bonds issued on behalf of RIAC for the intended use at the airports. Per the Lease Agreement, RIAC is obligated to repay to the State the principal and interest on any G.O. Bonds issued for airport purposes. As of June 30, 2015 RIAC will be obligated to repay the State approximately $2.02 million in

G.O. Bonds issued, of which approximately $1.597 million is scheduled to be repaid on July 1, 2015.

The Board of Directors of RIAC annually approves an Operating and Maintenance (O&M) Budget, as well as a Capital Budget for the fiscal year. The Board of Directors relies upon the advice and recommendation of RIAC's Finance & Audit Committee.

RIAC operates T. F. Green Airport, which is Rhode Island’s only certified Part 139 commercial airport. There are five General Aviation (GA) airports operated by RIAC. Each of these airports is briefly described below:

• North Central Airport – located in Smithfield, RI, approximately fifteen miles from T. F. Green Airport. North Central Airport is classified as a reliever airport to T. F. Green. • Quonset Airport – located in North Kingstown, RI, approximately ten miles south of T. F. Green Airport. The Rhode Island moved its operations from T. F. Green Airport to Quonset Airport in 1986. Quonset also has additional industrial facilities which are leased to various tenants. Quonset Airport is classified as a reliever airport. • Westerly Airport – located in Westerly, RI, approximately thirty-five miles from T. F. Green Airport. Westerly Airport is classified as a commercial service airport and enplanes approximately 10,000 commuter passengers annually. • Newport Airport – located in Middletown, RI, approximately seventeen miles from T. F. Green Airport. Newport Airport is classified as a general aviation airport. • Block Island Airport – located on Block Island, just off the southern coast of Rhode Island, approximately twenty-five miles from T. F. Green Airport. Block Island Airport is classified as a commercial service airport and enplanes approximately 10,000 commuter passengers annually.

AFCO AvPORTS Management, LLC (AvPORTS) manages and operates the GA airports pursuant to a Management Contract by and between RIAC and AvPORTS. The

agreement includes a fixed management fee of $157,140 for fiscal year 2016 which will be supplemented with a success based financial incentive. While RIAC is responsible for the safe operation of these facilities and has complete authority over all aspects of operation, AvPORTS, which is a privately-held company, performs the work necessary to ensure safe and efficient operations exist at these five GA Airports. RIAC provides the resources to manage and maintain these airports through an arrangement where direct costs borne by AvPORTS are passed through to RIAC. There are no associated mark ups on any direct costs for maintenance or Fixed Base Operator (FBO) activities.

Operating Budget RHODE ISLAND AIRPORT CORPORATION FY 2016 OPERATING AND MAINTENANCE BUDGET

BUDGET BUDGET FY 2016 FY 2015

REVENUES REVENUES 24,540,000 $ 23,625,000 LANDING FEES - GENERAL AVIATION 290,000 275,000 NON-AIRLINE RENTS 1,036,000 1,051,000 CONCESSION 3,740,000 3,590,000 TIE DOWN & HANGAR RENTS 1,262,000 1,291,600 FUEL FLOWAGE FEES 823,500 829,000 UTILITIES REIMBURSEMENT 346,000 346,000 MISCELLANEOUS REIMBURSEMENT 150,000 150,000 AIRCRAFT REGISTRATION 20,000 25,000 AUTOMOBILE PARKING -GENERAL 12,420,000 11,978,400 RENTAL CAR 5,070,000 5,232,000 OFF AIRPORT COURTESY FEES 487,200 446,600 HOTEL COURTESY FEES 210,700 212,300 RENTAL REVENUES - AIRPORT SUPPORT FUND 1,080,000 826,000 FEDERAL GRANTS 268,300 298,000 TOTAL REVENUES 51,743,700 50,175,900

PERSONNEL EXPENSES PAYROLL 11,907,000 11,529,000 PAYROLL OVERTIME 523,400 462,600 SNOW REMOVAL OVERTIME 175,900 194,200 HOLIDAY PREMIUM PAY 321,200 299,500 FICA TAX 946,000 925,100 DISABILITY AND LIFE INSURANCE 178,000 197,000 WORKERS COMP INSURANCE 460,000 390,000 HEALTH INSURANCE 2,286,500 2,096,000 EMPLOYEE RETIREMENT 1,112,000 1,089,000 TOTAL PERSONNEL EXPENSES 17,910,000 17,182,400

OPERATING & MAINTENANCE EXPENSES TELEPHONE 76,800 79,800 OFFICE EXPENSE & SUPPLIES 35,200 38,300 COMPUTER SOFTWARE & SUPPLIES 75,000 75,000 BANK SERVICE CHARGES 1,900 1,900 DUES & SUBSCRIPTIONS 108,900 103,900 TRAINING & EDUCATION 81,100 118,600 TRAVEL 76,000 88,900 MEETING EXPENSE 48,100 43,100 MARKETING EXPENSE 65,800 50,800 PRINTING 4,100 1,300 ADVERTISING 800,000 700,000 AVIATION FUEL & OIL 14,800 14,800 FUEL - GAS HEATING 346,400 346,500 ELECTRIC 1,819,000 1,814,000 WATER 78,700 81,500 SEWER 175,600 133,500 RUBBISH REMOVAL 48,700 18,700 CLOTHING & TOOLS 100,300 103,000 RHODE ISLAND AIRPORT CORPORATION FY 2016 OPERATING AND MAINTENANCE BUDGET

BUDGET BUDGET FY 2016 FY 2015

OPERATING & MAINTENANCE EXPENSES (Continued) RENTAL EQUIPMENT 13,200 38,400 AUTO MAINTENANCE 132,800 121,600 AUTO FUEL 193,000 193,000 HELICOPTER MAINTENANCE 22,900 22,900 AIRFIELD REPAIR MATERIAL & SUPPLIES 119,600 126,000 SNOW REMOVAL SUPPLIES 231,900 252,000 TOOLS & EQUIPMENT 20,100 17,800 SUPPLIES & MATERIALS 170,200 117,000 ELECTRICAL SUPPLIES & MATERIALS 60,000 54,000 ELECTRONIC SUPPLIES 12,000 12,000 HVAC SUPPLIES & MATERIALS 30,000 36,000 JANITORIAL SUPPLIES 75,800 86,000 CONTRACTED REPAIR SERVICE 120,700 120,100 CONTRACTED MAINTENANCE SERVICE 1,685,700 1,699,100 GLYCOL MAINTENANCE SERVICES 94,800 133,300 MAINTENANCE AGREEMENTS 509,300 449,500 PROFESSIONAL SERVICES 404,400 387,700 LEGAL SERVICES 190,500 203,000 AUDIT SERVICES 44,600 42,400 OUTSIDE SERVICES 1,872,400 1,805,600 MEDICAL SERVICES 8,500 4,800 CITY OF WARWICK SERVICES 500,000 500,000 LIABILITY & PROPERTY INSURANCE 649,600 678,200 RECRUITMENT EXPENSES 10,500 8,000 MISCELLANEOUS EXPENSE 56,800 89,400 OPERATING EXPENSE - AIRPORT SUPPORT FUND 129,800 102,200 FREIGHT & POSTAGE 16,400 18,000 TOTAL OPERATING & MAINTENANCE EXPENSES 11,331,900 11,131,600

TOTAL EXPENSES 29,241,900 28,314,000

NET OPERATING INCOME BEFORE GENERAL AVIATION AIRPORTS 22,501,800 21,861,900

GENERAL AVIATION AIRPORTS REVENUES 6,368,300 6,352,300 COST OF SALES 3,132,000 3,526,700 PERSONNEL EXPENSES 1,869,000 1,747,500 OPERATING & MAINTENANCE EXPENSES 1,505,000 1,562,600 AIRPORT MANAGEMENT FEE 157,100 154,000

TOTAL GENERAL AVIATION AIRPORTS (294,800) (638,500)

NET OPERATING INCOME BEFORE AMORTIZATION AND DEPRECIATION 22,207,000 21,223,400

AMORTIZATION AND DEPRECIATION 22,100,000 20,900,000

NET OPERATING INCOME AFTER AMORTIZATION AND DEPRECIATION $ 107,000 $ 323,400 OPERATING REVENUES Budgeted FY 2016 Operating revenues, including the impact of the airline incentive program, from T.F. Green and the Airport Support Fund total $51.744 million. Major categories of revenue are described below:

• Airline Revenues which include: • Landing fees for both Signatory and Non-Signatory carriers are based on estimated landing weights for FY 2016 provided by the carriers. FY 2016 Landing fee rates for Signatory and Non-Signatory carriers are $6.07 and $7.58 per thousand pounds of landed weight, respectively. • Airline rents are based on actual square footage for preferential (i.e. holdroom and gate areas), exclusive use (i.e. office, ticket counter spaces, and baggage makeup areas) and common use (i.e. baggage claim, and tug lanes) areas and a calculated rental rate. The FY 2016 rental rates for Signatory and Non- Signatory carriers are $104.66 and $130.83 per square foot, respectively. • Apron rental fees are charged to based on the actual amount of square feet of Apron utilized by the respective carrier. Apron rental fees for Signatory and Non-Signatory carriers are $1.87 and $2.35 per square foot, respectively. • The Airline Revenue budget also includes a revenue credit with the Signatory Airlines that will be allocated based on enplanement levels. • Non-airline rents are charged to tenants within the terminal facility and those tenants who lease other airport property. Included in this category are: rentals for taxi, shuttle van, limousine, ATM machines, TSA, and miscellaneous retail and office space. • Concession revenues are budgeted approximately $150K higher than the FY 2015 budget. The increase in revenues from FY 2015 is a result of new agreements and scheduled increases per the terms of the existing concessionaire agreements. • Tie Down & Hangar Rental revenues include hangar rentals and overnight aircraft parking at T.F. Green Airport. These revenues are budgeted based on existing leases and current projections for overnight parking.

• Fuel Flowage Fee revenues are derived from the FBO at T.F. Green. The majority of this line item is a result of a Minimum Annual Guaranty (MAG) per the terms of the agreement. • Automobile Parking budgets include gross revenues, net of the 5% Warwick surcharge and related operating expenses. Included in this category are the revenues and expenses for Garages A, B and C as well as Surface Lots D and E. RIAC-controlled garages and surface lots are managed by Standard Parking (Standard) under the terms of a Parking Management Agreement that calls for reimbursement of all direct operating costs plus a management fee. • Rental Car revenues for FY 2016 include a 10% commission on gross sales and rental of maintenance sites. The FY 2016 budgeted revenue is 3% lower than FY 2015 due to reduced enplanement levels. • Off-Airport courtesy fees are derived from two sources in the FY 2016 budget. Off-Airport parking concerns pay RIAC a 12% commission based on gross sales. Hotel Courtesy fees for shuttle bus access to the commercial curb are expected to generate approximately $211K in revenues for FY 2016. • Airport Support Fund revenues and related expenses are derived from RIAC land parcels at Quonset Airport managed by the Commerce RI through its subsidiary the Quonset Development Corporation (QDC). Personnel and Operating expense allocations from QDC to manage these properties are budgeted and charged as a percentage of revenues. • Federal Grants Revenue relates to two TSA Grants for the RIAC Police Department. The Canine Explosive Detection Team Grant is budgeted to generate $151K and the Law Enforcement Officer (LEO) Security Checkpoint Grant is budgeted to generate $117K. The decrease of $30K from the FY 2015 budget is due to reduced funding at the federal level for the LEO Grant.

OPERATING AND MAINTENANCE EXPENSES Total O&M expenses at T.F. Green for FY 2016 are $29.242 million which include budgeted personnel expenses of $17.910 million, and budgeted operating expenses of $11.332 million. Total O&M Expenses for FY 2016 are $928 thousand higher than the FY 2015 budget primarily due to planned increases in payroll costs, increases in medical insurance costs, workers compensation premiums, operating costs for the new Deicer Management System and advertising. These increases are offset by a decrease in rental equipment, and training and travel costs. • The FY 2016 Payroll budget assumes a 3% increase for employees along with contractual step increases. The FY 2016 budget also includes filling new or open positions (an administrative assistant, an airport operations specialist, an ARFF crewperson, managers in accounting, legal, and operations and maintenance, and two Law Enforcement Officers (LEO)) throughout the fiscal year. The two LEO’s are budgeted to start July 1, 2015 and the remaining positions are budgeted to start throughout the fiscal year. Airport Support fund payroll expense and costs associated with RIAC’s State Police liaison are also included in this line item. • Overtime expenses, including Snow Removal Overtime and Holiday Premium Pay increased $64K over the prior year. The increase in Payroll Overtime is based on the current trends in RIAC’s operational departments and the addition of a Customer Service Ambassador to assist with international flights. Snow Removal Overtime is based on an average snow season. • Health and dental insurance premiums for FY 2016 reflect an estimated 15% increase on the renewal date of February 1, 2016. This increase is offset by an increase in employee contributions to the medical plan. Also included in this line item is $186K for anticipated deductibles, which are paid by RIAC. • Employee Retirement expense includes the RIAC match of the 414(h) defined contribution plan and the impact of certain employees who remain part of the State Retirement System. The current employer contribution rate for the State Retirement System is 31.4% of wages and is expected to increase to 31.71% for FY 2016. RIAC contributes 8% of wages to the 414(h) defined contribution plan. • Advertising expense in the FY 2016 Budget has increased by $100K due to the increase in costs related to general airport advertising.

• Utilities including heating fuel, electricity, water, and sewer charges are budgeted based on current market conditions. Budgeted utilities for FY 2016 have increased approximately $44K from the prior year to reflect a full year of expense for the Deicer Management System. Utilities are partially offset by the Utilities Reimbursement revenue item. • Rubbish removal includes the cost of pickup and disposal of general rubbish and international waste. The FY 2016 budget increased $30K over the FY 2015 budget due to the anticipated increase in international waste as a result of the new international service. International waste has more frequent pickup requirements than general rubbish. • Rental Equipment includes costs for the photocopier rental agreement. FY 2016 budgeted amounts have decreased as the FY 2015 included $25K for rental of a glycol recovery vehicle. The FY 2016 Operating Capital Budget includes the purchase of a glycol recovery vehicle. • Airfield Repair Supplies & Materials for FY 2016 includes electrical parts for airfield lighting repair, crack sealing material and pavement paint for planned maintenance on pavement at T.F. Green Airport. • Snow removal supplies includes potassium acetate, sodium formate, sand, ice melt, rock salt, and broom wafers. The FY 2016 budget is based on an average snow season. • Contract Repair Service represents the cost of hiring outside contractors for repairs to catch basins, roofs, overhead doors, glass and vehicles. The cost for vehicle inspections is also included in this line item. • Contracted Maintenance Services for FY 2016 include the current agreement with a third party janitorial contractor for janitorial services at T.F. Green Airport. • FY 2016 Professional Services budget is approximately $404K. The majority of professional fee services are for the Air Service Development, Finance, and Marketing and Communication departments. Professional services budgeted in the Air Service Development department are $102K and include expenses for air service development consulting services. The Finance department budget of $160K includes financial advisory services, the airport consultant, and insurance-

related services, and the Marketing and Communication’s department budget of $134K includes federal and state lobbyist services. • The Legal Services budget reflects costs incurred for the use of outside counsel on various matters where expertise in a particular area is required. The budget includes fees related to legal services involving aviation specific counsel, various permitting issues, and labor relations. • The FY 2016 budget for Outside Services includes $971K for the operation and maintenance of the In-Line Explosive Detection System (EDS) Baggage Handling System by a third party. Also included in this line item are $165K for the Permanent Air Quality Monitoring system, $98K for the Noise Monitoring Software and Reporting, $108K for Landside snow removal and landscaping, $76K for payroll and employee benefit related services, $75K for operation of the Information Booth, $44K for Wildlife Conservation Services. • Liability & Property Insurance budgets for FY 2016 were collaboratively developed with RIAC’s insurance broker, Willis of Massachusetts, Inc. The budget for FY 2016 includes the following coverages: Airport Owners and Operators Liability Coverage (general liability); Aircraft Hull and Liability coverage (for the helicopter); Property Coverage; Automobile Coverage; Inland Marine Coverage (for RIAC’s mobile equipment); Fiduciary Coverage; Cyber Coverage; Directors and Officers Liability Coverage; Flood Coverage; and Environmental Liability Coverage. Workers Compensation Coverage is included in the Personnel section of the budget. Certain coverages associated with the InterLink and the GA airports have been included in their respective sections of the budget.

GENERAL AVIATION FY 2016 GA airport budgets reflect a net deficit of $295K which is approximately $344K less than the FY 2015 budget. The primary revenue sources at the GA airports are retail sales of aviation fuel, building/hangar rentals, and tie-downs/hangar rents. Revenues for the five GA airports for FY 2016 are budgeted to be approximately $16K more than the FY 2015 budget. The net change in budgeted revenues is driven by decreased fuel sales resulting in a $321K reduction to gross fuel sales revenue. This reduction is offset by the $186K increase in FY 2016 budgeted hangar rental and rental income over FY 2015 amounts primarily due to new rental agreements and scheduled increases per the terms of the existing rental agreements. The reduction is also offset by the $150K assumed loss of revenue included in the FY 2015 budgeted Miscellaneous revenue line item due to limitations on the use of the at Quonset. The following table details GA airport revenue budgets by source:

FY 2016 FY 2015

REVENUES JET A $ 3,230,600 $ 3,599,800 100 LL 1,302,800 1,254,900 HANGAR RENTAL 660,500 572,000 TRANSIENT HANGAR RENTAL 85,000 84,800 AIRCRAFT TIE DOWN/PARKING 125,900 133,300 RENTAL INCOME 640,700 542,900 AUTOMOBILE PARKING 16,600 16,600 UTILITY REIMBURSEMENT 37,900 34,300 LANDING FEES 147,400 152,900 FUEL FLOWAGE FEE 28,200 28,200 LAVATORY SERVICE 16,700 15,800 LINE SERVICE LABOR FEE 21,500 21,500 AIRCRAFT SERVICES 30,500 31,300 MISCELLANEOUS 24,000 (136,000) TOTAL REVENUES $ 6,368,300 $ 6,352,300

The FY 2016 budgeted costs of sales reflect current market conditions and are budgeted to be $395K below FY 2015 budgets based upon expected sales volume and the cost of fuel. O&M expenditures including personnel at the GA airports are budgeted to be $3.375 million for FY 2016, approximately $65K above the prior year budget. Aggregate operating expenses for FY 2016 include a 2.5% increase to current payroll effective January 1, 2016. In addition, there are increases to medical insurance, utility costs, and dues and subscriptions.

Other Income & Expense Budget RHODE ISLAND AIRPORT CORPORATION FY 2016 OTHER INCOME(EXPENSES), GRANTS, AND CONTRIBUTED CAPITAL BUDGET

BUDGET BUDGET FY 2016 FY 2015

OTHER INCOME AND CONTRIBUTED CAPITAL OTHER INCOME (EXPENSES) INTEREST EXPENSE $ (1,000) $ (5,000) INTEREST EXPENSE - BONDS (10,520,000) (11,800,000) COST OF ISSUANCE (400,000) - INTEREST INCOME - UNRESTRICTED 80,000 5,500 INTEREST INCOME - BOND FUND 50,000 40,000 INTEREST INCOME - PFC FUND 6,000 2,000 PASSENGER FACILITY CHARGE 7,350,000 7,480,000

TOTAL OTHER INCOME (3,435,000) (4,277,500)

GRANT INCOME (EXPENSES) - NOISE AND LAND PROGRAM FEDERAL GRANTS - FAA 14,057,900 18,691,200 LAND ACQUISITON PROGRAM EXPENSES (3,289,000) (10,915,200) NOISE MITIGATION PROGRAM EXPENSES (11,797,700) (8,542,800)

TOTAL GRANT INCOME (EXPENSES) - NOISE AND LAND PROGRAM (1,028,800) (766,800)

CONTRIBUTED CAPITAL CONTRIBUTED CAPITAL - FAA GRANTS 31,800,000 25,165,000 CONTRIBUTED CAPITAL - TSA GRANTS - 169,200 CONTRIBUTED CAPITAL - OTHER 650,000 -

TOTAL CONTRIBUTED CAPITAL 32,450,000 25,334,200

TOTAL OTHER INCOME AND CONTRIBUTED CAPITAL $ 27,986,200 $ 20,289,900 OTHER INCOME AND EXPENSES The FY 2016 Total Other Income and Contributed Capital budget is a $27.986 million and consists of the following: • Interest Expense includes interest costs related to the purchase of the Harris Farm property. • Interest Expense – Bonds includes the interest component of RIAC’s debt service related to existing Bond Series. A more detailed description of RIAC’s debt service is included as a separate section of this budget. • Cost of Issuance includes professional fees related to the potential refunding of the 2005 Series Bonds and the potential issuance of new bonds in FY 2016. • Interest Income – Unrestricted is based on the available unrestricted cash balance projected in this budget at an assumed interest rate ranging from 0.15% to 0.30% • Interest Income – Bond Fund is based on the available construction and debt service reserve funds budgeted at anticipated yields. Interest Income on the Bond Construction Accounts is capitalized and included in RIAC’s balance sheet as an offset to Capitalized Interest Expense to reflect the true costs of borrowing for construction projects. • Passenger Facility Charges (PFCs) reflect anticipated enplanements for FY 2016 and the continued collection rate of $4.50 per eligible passenger. • Interest Income on the PFC account is based on the anticipated balances projected in this budget at an assumed interest rate of 0.15%. • Grant Income – Noise and Land activity includes Phases 4 and 5 of the 2020 No- Build and Phase 1 of the 2025 Build Voluntary Land Acquisition and Mitigation Program and Phases 1, 2 and 3 of the Sound Insulation Program. FAA grants received for the Noise Mitigation and Voluntary Land Acquisition Programs are reported as income. Under the FAA program, RIAC is reimbursed 80-90% of eligible costs. The expenses booked are actual costs incurred less the capitalized land value. The variance between income and expense in this category is the sum of RIAC’s 10-20% match of eligible costs and non-reimbursable expenses offset by the actual capitalized land value.

• Contributed Capital – FAA reflects budgeted FAA grants (not including the Noise and Land Program) to be used for approved capital projects. The income is recorded as the project expenses are incurred. RIAC typically receives FAA reimbursement of 75% to 90% of the project costs depending on the grant. The costs are capitalized and reported as fixed assets on the balance sheet. The amount included in this line item reflects the current year trend of FAA federal funding to budgeted expectations. • Contributed Capital – Other reflects budgeted federal grant income of $2.4 million related to the Seawall Reconstruction project at Quonset State Airport. The income is recorded as the project expenses are incurred. In addition, cost of improvements to infrastructure totaling $1.750 million as part of the Runway 16/34 Runway Safety Area Improvements Project that will be turned over to the City and the FAA upon completion are expensed to this line item.

Interlink Facility RHODE ISLAND AIRPORT CORPORATION FY 2016 INTERLINK FACILITY BUDGET

BUDGET BUDGET FY 2016 FY 2015

INTERLINK

FACILITY REVENUES $ 7,520,000 $ 7,718,500 OPERATING & MAINTENANCE EXPENSES (1,470,000) (1,475,000)

NET OPERATING INCOME 6,050,000 6,243,500

DEPRECIATION EXPENSE 4,600,000 4,600,000

NET OPERATING INCOME AFTER DEPRECIATION 1,450,000 1,643,500

INTEREST INCOME - INTERLINK 40,000 25,000 INTEREST EXPENSE - INTERLINK (4,450,000) (4,485,000)

TOTAL INTEREST INCOME/(EXPENSE) (4,410,000) (4,460,000)

NET INCOME (LOSS) - INTERLINK $ (2,960,000) $ (2,816,500) INTERLINK The InterLink opened in the fall of 2010. This facility includes a train platform, a parking garage that provides parking for both commuters and rental car operators serving the Airport, a rental car customer service area, and an elevated moving skywalk system connecting the facility to the Airport. It is located approximately 1,500 feet from the front of the Bruce Sundlun Terminal at T. F. Green Airport. This project was funded by TEA-21 grants, SAFETY-LU Federal Funds, Customer Facility Charges, US Department of Transportation’s (USDOT’s) Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, proceeds from the 2006 Special Facility bond and State Grants.

Facility Revenues include Customer Facility Charges (CFCs), Rental Car Rental Fees, and Commuter Parking Revenues. CFC revenue is based on the anticipated enplanements for FY 2016 and a collection rate of $6.00 per rental car transaction day. The FY 2016 Facility Revenues Budget of $7,520,000 is comprised of the following:

• CFCs $5,840,000 • Rental Income $1,625,000 • Commuter Parking Revenue $50,000 • Miscellaneous $5,000

Operating Expenses include payroll, utilities, contracted maintenance, parking expenses for the commuter spaces, electric cart lease and operation, maintenance agreements, insurance and other costs associated with the InterLink.

Interest Expense – InterLink includes the interest component of RIAC’s debt service on the 2006 Series Special Facility Bonds and the TIFIA loan.

Debt Service Budget • GENERAL AIRPORT REVENUE BONDS AND DEBT SERVICE RIAC does not have the power to issue bonds or notes, or to borrow money without the approval of Commerce RI, nor does it have the power of eminent domain with respect to real property. The schedule below outlines the total FY 2016 anticipated debt service including principal payments net of pledged PFCs.

REVENUE BOND DEBT SERVICE 2005 Series Debt Service 9,310,300 2008 Series Debt Service 4,686,700 2013 Series A Debt Service 2,205,800 2013 Series B/C Debt Service 1,423,400 2015 Series A Debt Service 5,736,900 Total Revenue Bond Debt Service, gross $ 23,363,100 LESS: Pledged PFC Revenues - 2005C Series 808,200 Pledged PFC Revenues - 2015A Series 2,763,800 Total Pledged PFC Revenues 3,572,000

Total Revenue Bond Debt Service, net $ 19,791,100

RIAC issued General Airport Revenue Bonds (GARBs) in 1993, 1994, 1998 and 2000. RIAC issued General Airport Revenue Refunding Bonds in 2003 and 2004. All of these bonds currently have no balance outstanding either due to being paid off or refunded.

On June 28, 2005, RIAC issued $43,545,000 Series A and $27,245,000 Series B Airport Revenue Bonds maturing annually from 2009 through 2030 with interest coupons ranging from 4.625% to 5%. Also on June 28, 2005, RIAC issued $44,465,000 Series C Airport Revenue Refunding Bonds to enable the defeasance of $42,165,000 in 2000 Series B General Airport Revenue Bonds. The balances outstanding for the 2005 Series at July 1, 2015 are expected to be as follows: 2005 Series A - $30,000,000; 2005 Series B - $27,245,000; and 2005 Series C - $35,930,000.

On May 30, 2008, RIAC issued $17,645,000 Series A and $15,490,000 Series B GARBs maturing annually from 2008 through 2038 with interest coupons from 3.0% to 5.25%. Also on May 30, 2008, RIAC issued $18,030,000 Series C Airport Revenue Refunding Bonds to enable the defeasance of $18,060,000 in 1998 Series B GARBs. The balances

outstanding at July 1, 2015 are expected to be as follows: 2008 Series A - $15,695,000; 2008 Series B - $13,895,000; and 2008 Series C - $6,770,000.

RIAC secured funds for the Deicer Management System at T.F. Green Airport under the Rhode Island Clean Water Finance Agency’s State Revolving Fund. For the payment of eligible project costs up to $33,500,000 at an average effective interest rate of approximately 2.4%. This bond is issued pursuant to the Ninth Supplemental Indenture and secured by general airport revenues. Eligible project costs include construction funds, costs of issuance, and the debt service reserve fund. Interest payments will accrue as amounts are drawn down from this loan. The outstanding balance is expected to be $29,713,000 as of July 1, 2015.

On December 4, 2013, RIAC issued $30,700,000 Series B and $2,055,000 Series C Airport Revenue Refunding Bonds to enable the defeasance of $32,060,000 in 1998 Series A GARBs and $6,020,000 in 2003 Series A GARBs, respectively. The 2013 Series B refund issue matures annually from 2019 through 2028 with interest coupons from 4% to 5%. The 2013 Series C refund issue matures annually from 2014 to 2015 with interest coupons from 3% to 4%. The balances outstanding at July 1, 2015 are expected to be as follows: 2013 Series B - $30,700,000; 2013 Series C - $0.

On March 23, 2015, RIAC issued $42,980,000 Series A Direct Placement Airport Revenue Refunding Bonds to enable the defeasance of $48,625,000 in 2004 Series A General Airport Revenue Refunding Bonds. The 2015 Series A refund issue matures annually from 2015 through 2024 with an interest rate of 2%. The outstanding balance is expected to be $42,345,000 as of July 1, 2015.

Additional debt service includes $128K for G.O. Bonds, and $46K in principal and interest related to the purchase of the Harris Farm property in FY 2006.

SPECIAL FACILITY BONDS, CERTAIN LOANS AND FINANCING RELATED TO THE WARWICK INTERLINK FACILITY PROJECT

In 2006, RIAC issued $48,765,000 Series 2006 First Lien Special Facility Bonds for the InterLink Facility Project (2006 First Lien Bonds) dated June 14, 2006 maturing annually from 2011 through 2036 with interest coupons ranging from 4% to 5%. The balance outstanding for the 2006 First Lien Bonds is expected to be $45,265,000 at July 1, 2015.

The Trust Estate consists of: (i) Facility Revenues (which include CFCs); (ii) moneys, including investment earnings, in funds and accounts pledged under the Indenture; (iii) certain insurance proceeds required to be deposited in such funds and accounts under the Indenture; and (iv) Commerce RI’s right, title and interest to receive loan payments from RIAC under the Commerce RI Loan Agreement.

As part of the financing for the InterLink Facility Project, RIAC secured additional funds under the USDOT’s TIFIA provisions for the payment of eligible project costs of the InterLink Facility up to $42 million at an interest rate of 5.26%. This TIFIA Bond is issued pursuant to the First Supplemental Indenture as a Second Lien Obligation payable from and secured by a pledge of and secondary interest in the Trust Estate under the Indenture, subject to the pledge of the Trust Estate for the security and payment of the 2006 First Lien Bonds. The 2006 TIFIA Bond is also secured by the Second Lien Debt Service Reserve Fund which was funded from CFCs on the Date of Operational Opening (DOO) in the amount of $3,328,407 which is equal to the average annual debt service on the 2006 TIFIA Bond calculated as of the date of the closing. Interest payments commenced January 1, 2012 based on the final drawdown in October 2011. The outstanding balance is expected to be $41,540,891 as of July 1, 2015.

Operating Capital Budget Rhode Island Airport Corporation Operating Capital – Budget FY 2016

Asset Department/Airport Description $ Request 1 * Operations - T. F. Green Replacement of 6 Airfield Plows 2,028,000 2 * Operations - T. F. Green Replacement of 2 Snow Blowers 1,380,000 3 * ARFF - T.F. Green Replacement of 1 Fire Truck 900,000 4 * Operations - T. F. Green Glycol Recovery Vehicle 450,000 5 Operations - Quonset/North Central 2 Backhoes 250,000 6 Operations - T. F. Green Replacement of 4 Vehicles 90,000 7 Operations - T. F. Green Replacement of 3 Compressed Natural Gas vehicles 81,000 8 Operations - T. F. Green Asphalt Hot Box 41,000 9 Building Maintenance - T. F. Green Lot E Compliance 30,000 10 Information Technology - T.F. Green Replacement of 6 Computers and 3 Laptops 23,400 11 Operations - Newport Replacement of 1 Commercial Riding Mower 20,800 12 Building Maintenance - T. F. Green Vertical Personnel Lift 15,000 13 Environmental - T.F. Green Air Quality Monitoring Data and Storage Upgrade 15,000 14 Operations - T. F. Green Snow Blower Attachment for Tractor 13,000 15 Information Technology - T.F. Green Replacement of 1 Uninterruptable Power Supply (UPS) 12,600 16 ARFF - T.F. Green Replacement of 6 Self Contained Breathing Apparatus 6,000 17 Operations - T. F. Green Aircraft Towing Dolly 5,000 18 Information Technology - T.F. Green Memory Tester 4,500 5,365,300

* These Capital Requests totaling $4,758,000 will be funded with Bond proceeds or other funding sources. Approval of these assets and their subsequent funding mechanisms, will be brought to the Board prior to any purchase

Summary by Department Operations - All Airports 4,358,800 ARFF 906,000 Building Maintenance 45,000 Information Technology 40,500 Environmental 15,000 Total 5,365,300

1. Snow Removal Equipment - Airfield Plows (6) – Airfield Operations. $2,028,000 for the replacement of six airfield plows used, primarily, for snow removal. All six new airfield plows will be used at T.F. Green Airport. In addition, the following plows will be retired from T.F. Green Airports and the General Aviation Airports with the purchase of these six airfield plows – one 1976 Mack Truck, two 1979 Mack Truck, one 1986 Mack Truck, and two 1989 Mack Trucks.

2. Snow Removal Equipment – Airfield Snow Blowers (2) – Airfield Operations. $1,380,000 for the replacement of two airfield snow blowers at T.F. Green Airport. Two existing snow blowers at T.F. Green Airport (Stewart & Stevenson models) will be transferred to the General Aviation Airports. The following airfield snow blowers will be retired at the General Aviation Airports – one 1979 Mack Sno-Go and one 1986 Mack Sno-Go.

3. Fire Truck – ARFF. $900,000 for the replacement of the 1998 Oshkosh ARFF vehicle (#302) that is at the end of its useful life which is typically 15-20 years.

4. Glycol Recovery Vehicle – Airfield Operations. $450,000 for the purchase of one Glycol Recovery Vehicle. This vehicle is used to collect glycol at the Terminal ramps and aprons during deicing conditions.

5. Backhoes (2) – Airfield Operations (Quonset and North Central Airports). $250,000 for two new backhoes with ramp pusher blades for snow removal to be used at Quonset and North Central Airports. These backhoes will be used in place of renting (rental cost is approximately $60,000 annually) two backhoes from October to March at Quonset and North Central Airports.

6. Motor Vehicles (3) – Airfield/Auto Maintenance. $90,000 for the replacement of the following three vehicles: one 2000 GMC Jimmy, one 2000 Ford Explorer, and one 2003 Ford Explorer.

7. Compressed Natural Gas (CNG) Motor Vehicle (3) – Airfield/Auto Maintenance. $81,000 for the replacement of the three CNG vehicles. The CNG tanks of all three vehicles will all have expired by August 2015.

8. Asphalt Hot Box – Airfield Operations. $41,000 for an Asphalt Hot box which will provide operations with the ability to repair old pavement at night during cold weather.

9. Parking Lot E Compliance – Building Maintenance. $30,000 for improvements to Parking Lot “E” to modify certain shuttle shelters and adjacent areas to conform to Americans with Disabilities Act (ADA) accessibility guidelines.

10. Replacement of Computers (6) and Laptops (3) – Information Technology. $23,400 for the purchase of six computers and three laptops to replace equipment at the end of their useful life.

11. Commercial Riding Mower – Airfield Operations (Newport Airport). $20,800 for the replacement of one commercial riding mower at Newport Airport.

12. Vertical Personnel Lift – Building Maintenance. $15,000 for the purchase of one, single man, Vertical Personnel Lift to access confined spaces.

13. Air Quality Monitoring Data Acquisition and Storage Upgrade - Environmental. $15,000 to upgrade the current system to avoid issues with the transfer and storage of data from existing air Quality Monitoring Stations.

14. Snow Blower Attachment – Airfield Operations. $13,000 for the addition of a snow blower unit that can be added to the Holder tractor to support snow clearing in tight areas (airfield signs, lights, sidewalks, etc.).

15. Uninterruptable Power Supply (UPS) Replacement – Information Technology. $12,600 for the replacement of a fifteen year old UPS device that is beyond its useful life.

16. Self-Contained Breathing Apparatus (6) - ARFF. $6,000 for the replacement of six breathing apparatus units used by ARFF that are nearing the end of their useful life.

17. Aircraft Towing Dolly – Airfield Operations. $5,000 for the purchase of an Aircraft Towing Dolly. This device will be used to expedite the removal of privately owned disabled aircraft from active runways.

18. Memory Tester – Information Technology. $4,500 for the purchase of a Memory Tester. This equipment will provide RIAC staff with a streamlined and efficient troubleshooting tool.

Capital Improvement Program FY 2016 Capital Improvement Program (CIP) Budget Table

Expenditures Sources of Funds Item # Project Total Budget Budget Through 2015 2016 Grants Bonds PFC RIAC T. F. Green 1 Deicer Management System $ 33,128,891 $ 33,128,891 $ 32,071,606 $ 1,057,285 - 1,057,285 - - 2 Triturator Upgrade 560,000 560,000 10,540 549,460 - 549,460 - - 3 Airport Improvement Program Mitigation Measures 500,000 500,000 169,494 164,957 123,718 - - 41,239 4 Runway 16/34 Safety Area Improvements 43,500,000 43,500,000 24,588,053 18,911,947 16,893,532 - 1,526,451 491,964 5 Runway 5/23 Extension * 87,000,000 87,000,000 21,102,371 22,449,691 13,146,155 9,303,536 - - 6 Obstruction Removal Program - Runway 16-34 1,173,500 1,173,500 226,252 947,248 852,523 - - 94,725 7 Hangar 1 Demolition 1,615,000 1,615,000 1,426,538 188,462 141,346 - 47,115 - 8 Hangar 2 - Improvements 950,000 950,000 401,243 548,757 - 548,757 - - 9 Terminal Redesign Review & Planning 100,000 100,000 38,500 61,500 - - - 61,500 10 Interior LED Lighting Upgrade 1,477,210 1,477,210 - 1,477,210 - - - 1,477,210 11 Noise Mitigation/Land Acquisition- All Phases 18,795,000 18,795,000 11,695,000 4,300,000 3,440,000 - 860,000 - 12 Noise Mitigation/Sound Insulation - All Phases 32,197,000 32,197,000 3,732,387 11,797,652 10,617,887 - 1,179,765 - 13 Master Plan Update 1,000,000 1,000,000 - 500,000 375,000 - - 125,000 14 Economic Impact Study 235,000 235,000 145,000 90,000 - - - 90,000 Total 222,231,603 222,231,603 95,606,985 63,044,169 45,590,162 11,459,038 3,613,332 2,381,638 North Central 15 Hangar Fire Suppression System Upgrade 1,000,000 1,000,000 377,308 622,692 - 622,692 - - 16 Provide Obstruction Free RVZ 2,100,000 2,100,000 1,754,327 345,673 311,106 - - 34,567 Total 3,100,000 3,100,000 2,131,635 968,365 311,106 622,692 - 34,567 Newport 17 Acquire Easement & Install Obstruction Lights/Remove Obstructions 925,000 925,000 611,833 313,167 281,850 - - 31,317 Total 925,000 925,000 611,833 313,167 281,850 - - 31,317 Quonset 18 Old Terminal & Air Museum Demolition 2,122,400 2,122,400 - 2,122,400 - 2,122,400 - - Total 2,122,400 2,122,400 - 2,122,400 - 2,122,400 - - Westerly 19 Acquire Easements/Obstruction Lights/Removal of Obstructions 2,550,000 2,550,000 2,131,782 418,218 376,396 - - 41,822 Total 2,550,000 2,550,000 2,131,782 418,218 376,396 - - 41,822 All Airports 20 Airport System Plan Update 150,000 150,000 40,000 110,000 104,500 - - 5,500 21 Solar Feasibility Study 100,000 100,000 - 100,000 - - - 100,000 Total 250,000 250,000 40,000 210,000 104,500 - - 105,500

Total RIAC $ 231,179,003 $ 231,179,003 $ 100,522,235 $ 67,076,320 46,664,014 14,204,130 3,613,332 2,594,844 * Funding Source: PFC Backed Bonds or PFC's Fiscal Year 2016 Budget Capital Improvement Program (CIP)

The FY 2016 Budget for the Capital Improvement Program (CIP), summarized in the FY 2016 CIP budget table, includes a total of twenty-one new and on-going projects with approximately $67.1 million in programmed spending at T. F. Green Airport and the General Aviation Airports. Detailed descriptions for each project follow the CIP budget table.

Total discretionary and entitlement funding from the Federal Aviation Administration (FAA) is budgeted at $46.7 million. These funds will be utilized for twelve of the projects and account for 70% of total funding.

General Airport Revenue Bonds will be utilized for six projects in the amount of $13.1 million and account for 20% of total funding.

Passenger Facility Charges (PFC) will be utilized for four projects in the amount of $3.6 million and account for 5% of total funding.

RIAC sponsored cash will be utilized for twelve projects in the amount of $2.6 million and account for 4% of total funding.

Rhode Island Clean Water Bonds will be utilized for the Deicer Management System in the amount of $1.1 million and account for 1% of total funding.

FY 2016 CIP Budget $(000) % FAA 46,664 70% General Revenue Bonds 13,147 20% Passenger Facility Charges 3,613 5% RIAC Cash 2,595 4% Clean Water Bonds 1,057 1% 67,076

T. F. Green Airport

1. Deicer Management System

FY 2016 $1,057,285 Total $33,128,891

This project consists of upgrades to the deicer runoff management system at T.F. Green Airport. The proposed improvements include online monitoring and diversion of deicing stormwater to comply with the Rhode Island Pollutant Discharge Elimination System (RIPDES) permit issued by the Rhode Island Department of Environmental Management (RIDEM). The improvements prevent the discharge of deicing runoff to surface waters when the concentration exceeds the RIPDES permit limits. In June 2013, RIAC secured funds under the Rhode Island Clean Water Agency’s State Revolving Fund. Design services were completed in FY 2013 and construction began in FY 2014. Project is expected to be fully completed by August 2015 once the remaining tools and equipment are procured.

2. Triturator Upgrade

FY 2016 $549,460 Total $560,000

Based on the feasibility study for this project, conducted in FY 2013, RIAC anticipates designing, permitting and bidding this project in FY 2016. The design of this system will ensure compliance with Warwick Sewer Authority (WSA) standards.

3. Airport Improvement Program – Mitigation Measures

FY 2016 $164,957 Total $500,000

This project is for the mitigation measures required by the Record of Decision (ROD) associated with the Airport Improvement Projects identified in the Final Environmental Impact Statement (FEIS). Key tasks include:

• Environmental permitting associated with Main Avenue relocation and Runway 5 extension; • Conducting cultural resource assessments (archaeological surveys) as requested by the Narragansett Indian Tribal Historic Preservation Office associated with relocating Winslow Park recreation facilities, Main Avenue relocation, and Runway 5 extension; • Ensuring compliance with and tracking mitigation measures required by the FEIS such as historic cemeteries, section 6(f) (National Park service), and Rhode Island Historic Resources Archive documentation; and • Post-construction monitoring (as required by the Army Corps of Engineers) for wetlands mitigation measures.

4. Runway 16/34 Safety Area Improvements

FY 2016 $18,911,947 Total $43,500,000

The Runway Safety Areas (RSA) of Runway 16/34 will be brought current with the FAA’s most recent design criteria. Runway 16 work was substantially completed in FY 2015. The majority of the balance of the project funding is related to Runway 34 work. This project includes the installation of Engineered Materials Arresting System (EMAS) in the RSAs at each runway end along with the following:

• Reconfigured taxilane from the Runway 16 end to the North Apron to meet FAA “Airport Design” requirements; • Replacement of NAVAIDS; • Replacement of the Airfield Lighting Control System in the control tower; • Raising of Runway 34 end to meet FAA guideline for runway profile grading; • Relocation of a portion of the runway 34 end Perimeter Road outside of the Runway Safety Area; and • Wetland mitigation improvements.

5. Runway 5/23 Extension Project

FY 2016 $22,449,691 Total $87,000,000

This project involves extending Runway 5 to the south by approximately 1,530 feet to a total length of 8,700 feet. Major components of this work are as follows:

• Acquisition of land and residences within the new Runway Protection Zone (RPZ) and Main Avenue; • Installation of an EMAS on the southwest end (Runway 5 end); • Relocation of Winslow Park facilities; • Relocation of Main Avenue and the perimeter roadways; • New navigational aids, airfield approach lighting, drainage improvements, utility relocations, site clearing, fencing, and electrical vault upgrades; and • Extension of parallel Taxiway M and associated stub taxiways.

6. Obstruction Removal Program – Runway 16-34

FY 2016 $947,248 Total $1,173,500

This project includes the acquisition of easements, design, and construction related to on and off airport obstruction mitigation.

7. Hangar 1 Demolition

FY 2016 $188,462 Total $1,615,000

Hangar 1 was located in the Runway 16-34 Object Free Area and was demolished in FY 2014. FY 2016 encompasses the remaining elements of this project, primarily the construction of a cold storage shed, which is scheduled to be completed by August 2015.

8. Hangar 2 Improvements

FY 2016 $548,757 Total $950,000

This project is for the replacement of the current fire suppression system, upgrade of the water main and fire alarm systems, and exterior painting of the Hangar structure. In Fiscal year 2015, the exterior painting element of this project was substantially completed. The balance of the project funding in FY 2016 is related to the fire, water and alarm system upgrades.

9. Terminal Redesign Review and Planning

FY 2016 $61,500 Total $100,000

This project will provide RIAC with preliminary design alternatives and associated cost estimates for the improvement to the interior of the airport terminal.

10. Interior LED Lighting Upgrade

FY 2016 $1,477,210 Total $1,477,210

This project consists of replacing existing interior standard lighting with new LED type that will consume significantly less energy while maintaining the same light levels.

11. Noise Mitigation-Land Acquisition – All Phases

FY 2016 $4,300,000 Total $18,795,000

There are a total of 65 homes included in the total cost of the program. This program has been implemented in phases based on funding availability from the Federal Aviation Administration (FAA), with the last acquisition phase of nine properties expected to commence in FY 2017. RIAC received approval from the FAA on July 27, 2010 for an updated Noise Exposure Map (NEM). This NEM contains noise contours and identifies residential properties within and adjacent to the DNL 70dB contours for 2020 ‘No-Build’ and 2025 ‘Build’ scenarios. These residences are eligible for acquisition of their homes under RIAC’s Voluntary Land Acquisition Program. RIAC will acquire properties in accordance with the Uniform Relocation Assistance Act. Upon successful relocation of the residents, the homes will be razed.

12. Noise Mitigation-Sound Insulation – All Phases

FY 2016 $11,797,652 Total $32,197,000

This program has been implemented in phases based on funding availability from the Federal Aviation Administration (FAA). There are a total of 650 units (single-family homes/multi-family homes/condos) included as part of this program. RIAC received approval from FAA on July 27, 2010 for an updated Noise Exposure Map (NEM). This NEM contains noise contours and identifies residential properties within the DNL 65dB contour. RIAC expects to have sound insulated approximately 245 units and designed/bid another 222 units by the end of FY 2016. RIAC’s goal is to have all units, which qualify, completed by FY 2018.

13. Master Plan Update

FY 2016 $500,000 Total $1,000,000

Under this project, RIAC will update the Airport Master Plan for T.F. Green Airport (PVD).

14. Economic Impact Study

FY 2016 $90,000 Total $235,000

Under this project, RIAC will determine the Economic Impact of the Rhode Island Airport System. Phase 1 will focus on T.F. Green Airport and phase 2 will focus on the five (5) general aviation airports.

North Central

15. Hangar Fire Suppression System Upgrade

FY 2016 $622,692 Total $1,000,000

The primary purpose of this project is to upgrade to a foam fire suppression system in the Hangar. This project is currently underway and is expected to be completed by September 2015.

16. Provide Obstruction Free Runway Visual Zone

FY 2016 $345,673 Total $2,100,000

This project involves the relocation of the fuel storage tanks along with the construction of a new fuel tank apron area and a new 12-foot wide gravel service road that will provide access from the new apron area to the existing terminal apron area. The project also consists of the removal of approximately 3.6 acres of terminal apron pavement from within the Runway Visual Zone along with the reconstruction of two taxiways connecting Taxiway ‘B’ to the terminal apron. This project is expected to be completed in August 2015.

Newport

17. Acquire Easement & Install Obstruction Lights/Remove Obstructions

FY 2016 $313,167 Total $925,000

This project includes the acquisition of easements, design, and construction related to off- airport obstruction mitigation. Costs associated with this work include survey, engineering and environmental permitting.

Quonset

18. Demolition of Old Terminal and Air Museum

FY 2016 $2,122,400 Total $2,122,400

This project is primarily for the demolition of the old terminal building and air museum. In addition, this project includes construction costs for a small maintenance building.

Westerly

19. Acquire Easements/Obstruction Lights/Removal of Obstructions

FY 2016 $418,218 Total $2,550,000

This project includes the acquisition of easements and the construction related to off- airport obstruction mitigation. Costs associated with this work include detailed ground surveys, engineering, environmental permitting and the construction of obstruction lights to demarcate obstructions that will remain.

All Airports

20. Airport System Plan Update

FY 2016 $110,000 Total $150,000

The objective of this project is to update the 2004 Rhode Island Airport System Plan.

21. Solar Feasibility Study

FY 2016 $100,000 Total $100,000

The objective of this project is to conduct a solar photovoltaic (PV) feasibility and siting study for the six RIAC airports.

Glossary of Terms

RHODE ISLAND AIRPORT CORPORATION FY 2016 BUDGET GLOSSARY OF TERMS

Advertising: Expenses in this category relate to expenditures for inclusion in Travel & Tourism publications, radio and print advertising, procurement notices, advertisements for open positions, and notifications of public hearings & meetings.

Airfield Repair Material & Supplies: Costs for materials and supplies used to repair and maintain the airfield are tracked in this category, including, expenditures for crack sealer, rubber removal solution, and pavement paint for runway lines and other markings.

Audit Services: It is a requirement that the Rhode Island Airport Corporation’s (RIAC) year- end financial statements be audited by an independent CPA firm. All costs related to the audit of the financial statements, the Single Audit, and the Passenger Facility Charge (PFC) audit are included in this line item.

Auto Fuel: Costs of diesel fuel and gasoline for the vehicle fleet and snow removal equipment are included in this line item.

Auto Maintenance: Costs relating to the maintenance and upkeep of the vehicle fleet and snow removal equipment are included in this line item.

Aviation Fuel & Oil: Costs for fuel and oil for the RIAC helicopter are charged to this line item.

Bank Service Charges: Merchant charges for the costs of processing credit card transactions are included in this account.

Clothing & Tools: Pursuant to the Collective Bargaining Agreement (CBA), tool allowances (for trade employees) and the costs of cleaning uniforms are provided to the employees. This account is also charged for the actual purchase of uniforms or uniform rentals.

Computer Software & Equipment: The purchase of disks, cables, printers, software licenses, and other computer-related items are charged to this account.

Contracted Maintenance Service: The costs for third party janitorial services and other maintenance services for the facilities at T. F. Green are charged to this account. Other maintenance services include glass cleaning & caulking, bird & pest control, the servicing of oil/water separators, circuit breakers and generator tests, and service inspection of ARFF vehicles.

Contracted Repair Service: The costs related to various types of services for emergency repairs of motors, copier machines, roofing work, HVAC repairs, and overhead door repairs are included in this line item.

Dues and Subscriptions: Subscriptions to technical manuals and materials, various periodicals, professional licenses and dues to aviation and technical associations are included in this category.

Electric: The costs for airfield lighting and electricity for RIAC facilities at T. F. Green are included in this line item.

Electrical Supplies & Materials: This category includes costs for spare and replacement parts, fuses, bulbs and ballasts. Relamping is approximately 50% of the estimated supply costs.

Electronic Supplies: Costs in this category are primarily related to repair and maintenance of radios and the public address system in the terminal building.

Fuel-Diesel, Fuel-Oil Heating, Fuel-Gas Heating: These accounts are for the various types of fuel used in airport operations. Diesel fuel is used to power the generators and oil fuel is used to heat Hangar #3. All other buildings, including the terminal are heated by gas.

Glycol Maintenance Services: The costs of remediation and disposal of airline sprayed glycol deicing fluid as well as various permitting and compliance costs are included in this line item.

Helicopter Maintenance: Includes all maintenance costs and annual inspections, with the exception of avionics services for radio equipment related to RIAC’s helicopter.

HVAC Supplies & Materials: Heating, Ventilation, and Air Conditioning (HVAC) supplies include items such as air filters, belts, valves and controls.

Janitorial Supplies: Janitorial supplies include costs for toilet paper, hand towels and trash bags. The janitorial service company is required to provide cleaning supplies as part of its contract with RIAC.

Legal Services: All costs for outside legal services and related expenses are charged to this account. Examples include permitting and other environmental issues, civil litigation, contract implementation, labor relations, agreements, insurance claims and other matters as may be requested or required by the Board of Directors.

Liability & Property Insurance: This line item includes insurance premium costs including, but not limited to, the following policies: Property, Fiduciary, Airport Premise Liability, Airport Hull & Liability, Automobile, and Directors’ and Officers’ Liability. Workers Compensation premiums are recorded separately in the personnel category.

Maintenance Agreements: Service agreements to maintain the telephone system, HVAC controls, boilers, cooling towers, elevators & escalators, fire extinguishers and for the Self Contained Breathing Apparatus (SCBA) used by ARFF are recorded in this line item. This account also includes maintenance costs for certain software systems.

Marketing Expense: Expenses for cooperative marketing opportunities, trade shows, electronic flight guides, website maintenance and press conferences are included in this line item.

Medical Services and Supplies: Costs incurred for physicals and psychological testing, assessments & evaluations, medical waste removal and various medical supplies are included in this category.

Meeting Expenses: Meeting expense includes the room rental and food cost for Table Top Exercises for FAA Part 139 and ARFF Working Group Regional Meetings, Board, Finance and tenants meetings, management retreats, as well as Tourism Board and Chamber of Commerce receptions.

Miscellaneous Expense: Badging and fingerprinting costs, and expenses of the Explosives Detection Canine Team program are recorded in this account. Additionally, items such as small furniture and office equipment purchases are charged to this line item.

Office Expense & Supplies: All purchases of office supplies and paper are included in this category. The Administration Department is charged for all copying paper and general supplies. Individual departments are charged for items such as desk accessories, file cabinets, file folders, date/appointment books and binders.

Outside Services: Routine outside services are charged to this category, though they vary by department. For budgeting purposes, included in this category are costs for outside snow removal, landscaping, computers, payroll, drug and alcohol testing and CDL testing, as well as, environmental testing, staffing of the information booths, costs related to the operation of the baggage handling system, and pension administration.

Postage & Freight: Includes express mailing of packages, regular postage, and freight for items received by RIAC.

Printing: Includes the printing and set-up costs for handbooks, newsletters, and technical and engineering documents.

Professional Fees Expense: Costs for professional and/or technical services are charged to this line item. These services would typically include "on-call" engineering & planning consultants, financial and other airport consultants, insurance and ad agency costs, arbitration & mediation, Human Resource consultation, and appraisal services.

Recruitment Expenses: Included in this category are costs related to the recruitment of personnel for prospective employment including the costs of travel.

Rental Equipment: Costs for the rental of photocopiers is included in this line item. In addition, equipment rentals due to emergencies, and infrequently needed equipment are charged to this line item. Typical equipment rentals include front-end loaders, trash containers and postage meters.

Rubbish Removal: Included in this category are pickup and disposal fees for general rubbish, construction debris and pallets, and international waste.

Sewer: Costs assessed by the Warwick Sewer Authority for T.F. Green and related properties.

Snow Removal Supplies: Includes all supplies and materials purchased for snow removal. Examples include: potassium acetate, sodium formate, FAA-approved sand, ice melt and rock salt.

Supplies & Materials: Charges vary by department; examples include: lumber, asphalt, cement, paint, ammunition, portable radios, film, batteries, laminated security badges, blueprints and drafting supplies, fire fighting supplies, and batteries.

Telephone: Telephone equipment costs and usage charges are included in this category. Examples include local and long distance charges, cellular phone charges, and monthly rental and usage cost for pagers.

Tools & Equipment: Power tools, hand tools, gauges, meter/test equipment, vacuums and ladders are charged to this expense line.

Training & Education: Registrations for conferences as well as the costs of professional and educational trainings are charged to this line item.

Travel: A significant portion of travel cost (transportation, meals & lodging) is related to the training & education of RIAC personnel. Travel expenses include mileage reimbursement, meals, and other transportation costs.

Warwick Surcharge: RIAC pays an annual amount to the City of Warwick as prescribed by Rhode Island State Law for public safety services rendered.

Water: City of Warwick water usage charges at T.F Green and related properties are charged to this line item.