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PVD 2016 Budget.Pdf Introduction RHODE ISLAND 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 Air National Guard 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 AIRLINE 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 Airlines 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.
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