2010 B U D G E T As adopted by the Board on December 2, 2009 The Government Finance Officers Association of the United States and Canada (GFOA) presented an award for Distinguished Budget Presentation to the Metropolitan Washington Airports Authority for its annual budget for the fiscal year beginning January 1, 2009. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. RESOLUTION NO. 09-41 Adopting 2010 Budget WHEREAS, on September 1, 2009, the Board of Directors conducted a work session on the upcoming budget for 2010 at which the President and Chief Executive Officer presented the major challenges that the budget would need to address, and the Board of Directors raised a number of concerns and expectations; WHEREAS, on October 21, 2009, the Finance Committee of the Board received and discussed an initial draft version of a proposed 2010 Budget; WHEREAS, on November 4, 2009, the Finance Committee of the Board received and discussed a revised draft version of a proposed 2010 Budget, and directed certain revisions; WHEREAS, on November 18, 2009, the Finance Committee of the Board received and discussed a revised draft version of the proposed 2010 Budget and recommended its approval, subject to certain revisions, to the Board; WHEREAS, on December 2, 2009, the Board received the final proposed 2010 Budget (“2010 Budget”), as well as the recommendation of the Finance Committee; WHEREAS, in the 2009 Budget an unprecedented escalation in energy costs and a forecasted decline in airline passenger activity put strain on the Airports Authority’s cost structure; WHEREAS, to minimize increases to the airline rates and charges, the 2009 Budget included $14.4 million of the Airports Authority’s net remaining revenue to pay for certain operating expenses; WHEREAS, to eliminate the need to recover debt service related to the AeroTrain in the 2009 airline rates and charges, the 2009 Budget incorporated the restructuring of the Passenger Facility Charges (PFCs) program to pay all such debt service; WHEREAS, to provide forZ009 Performance Management PartnerShip mitigate the PMP cost to the airlines, the 2009 Budget (PMP) and to increased the airlines' share of Net Remaining Revenue (NRR) earned in 2008 by' $3,5 million and the Airports Authority's share of 2008 NRR decreased by $3.5 million; WHEREAS, in 2010, the Airports Authority's cost structure will be subject to added pressutes with a full yearis cost of the AeroTrain; WHEREAS, toredûce the héed to recover debt service related to the . ÄeroTrâin artdminiriize 2010 airline rates and charges, the 2010 Budgét i~cor~()rates the restructuring of the Passenger Facility Charges (PFCs) program to pay $82.0 million of such debt service; WHEREAS, it is the intent of the Board of Directors that such financial rEmer as the 2009 Budget provided, and the 2010 Budget wil provide, to the airlines is temporary,ahdthe Boàrd will determine on an annual basis the need, if any, for continued airline financial relief; WHEREAS, . the Board has determined that the 2010 Budget presents a reasonable lèvèldfex:penditures, to be. made or atcruedin2010, (a)fronithe Aviation, Ertterprisé Fund, to operate Ronald Reagan Washington. National and Wa'shington Dulles International Airpo"rts, to repair and maintain thefaèiihiés at thése Airpórts,and to undertake neédéd capital improvements at the Airports, and (b) from the Dulles Corridor Enterprise Fund, to operate the Dulles Toll Road to repair and maintain Toll Road facilities, to undertake capitalimprovernentsfor the betterment of the Toll Road, and to continue construction of a Metrorail line from theexisting West Falls Church Metro station to Wiehle Avenue and eventually to and past Dulles Airport ("Dulles Rail Project"), and that there wil be sufficient revenues in 2010 and other funds to cover these expenditures; and WHEREAS, under the statutes creating the Airports Authority, Va. Code § 5.1..175(D) and D.C. Code § 9..904(d), eight affirmative votes of the Board of Directörs are requited to adopt the annual budget of the Airports Authority; NOW, THERË~ORE, BE liRESOLVËD 1. That the 2010 Budget, as presented to the Board of Directors on December 2,2009, is hereby approved and adopted; 2. That the 2010 Aviation Enterprise Fund Budget includes elements to minimize the increase to airline rates and charges and that it is the Board's intent to evaluate on an annual basis the continued need, if any, for future airline relief; 2 3. That the following sums, totaling $935,999,000, are hereby authorizéd to be expended from the Aviation Enterprise Fund in 2010 for the operation, rnaintenánce,care, improvement and protection of Ronald ReaganWashiiigtol1 National and Washington Dulles International Airports: (a) $558,627,000 for the Aviation Operation and Maintenance Program, including $242,338,000 of this total for debt service; (b) $50,106,000 for the Aviation Capital, Operating and Maintenance Ihvestmént.Program; and (c) $327,266,000 for the Aviation Capital Construction Program; 4. That the folloWing sums, totaling $978,915,770, are hereby authorized tò be. expended from the Dulles Corridor Enterprise Fund in 2010 for fhe operation, maintenance, care, improvement and protection of the Dulles Toll Road and for the planning, design and construction of the Dulles Rail Project: (a) $71,011,000 for the Dulles Corridor Operation and Maintenance Program, including $46,365,000 of this total for debt service; (b) $5,0'15,000 for the Dulles Corridor Renewal and Replacement Prögram; (c) $902,883,770 for the Dulles Corridor Capital Improvement Program, consisting of $27,605,770 for Corridor Improvements and $875,278,000 for the Dulles Rail Project; and (d) $17,843,000 to be transferred to reserve accounts within the Dulles Corridor Enterprise Fund, as identified in the 2010 Budget; and, fürlhér, that any révenue received or accrued by the Dulles Corridor Entèrprise irl 2010 which, at the conclusion of 2010, has not been expended, obligated or trähsfè'rred to a reserve account pursuant to subparagraph (d) of this paragraph, or to à reserve fund or account pursuant to the Master Indenture of Trust SeCl.lririg Dulles Toll Road Revenue Bonds, dated as of August 1, 2009, shall be transferred to the Dulles Corridor Enterprise Reserve and Toll Rate Stabilization Fund. 5. That the President and Chief Executive Officer is hereby authorized to modify or adjust expenditures within each of the six programs identified in Paragraph :3 and Paragraph 4, so long as the total expenditures within any such 3 program in 2010 do not exceed the level authorized for the program in Paragraph 3 or Paragraph 4; 6. __ Thafthe nëw and expanded projects identified in the2010 Budget, and in attachments to this Resolution, in the amount of (i) $25,200,000 within the AViation Capital Operating and Maintenance Investment Program (Attachment 1), (ii)$92;geO,000 within the,Aviation Capital Construction-Program (Attachmënt 2), (iil) $1,760,000 within the _ Dulles Corridor _ Renewal and Replacement Pr~grarn (Attachment 3), and (iv) $38,431,000 _ within the Dulles Corridor Capital Improvement Program, cotlsisting of $931,000 for the DUlles Toll Road and $37,500,000 for the Dulles Rail Project (Attachment 4), are hereby approved,and hereafter shall be considered a part of their respective approved programs; and 7. That thiS Rèsolutiöh shall be effective upon its adoption; provided, that the delegation of aiifhörity provided in paragraph 5 shall b"e effective on January 1, 2010, and shall remain in effect until December 31, 2010. Adopted December 2,2009 Quince T.Brinkley, Jr., Secretary RECORDED VOTE: Members Present -. Members in Favor _ _ 12 Members Against -- Members Abstaining 0 4 METROPOLITAN WASHINGTON AIRPORTS AUTHORITY 2010 BUDGET JANUARY 1 - DECEMBER 31, 2010 BOARD OF DIRECTORS The Honorable H.R. Crawford, Chairman Mame Reiley, Immediate Past Chairman Charles D. Snelling, Vice Chairman Robert Clarke Brown The Honorable William W. Cobey Jr. Frank M. Conner III Mamadi Diané The Honorable Michael David Epstein Jack Andrew Garson Leonard Manning Dennis L. Martire Michael L. O=Reilly The Honorable David G. Speck EXECUTIVE STAFF James E. Bennett, President and Chief Executive Officer Margaret E. McKeough, Executive Vice President and Chief Operating Officer Lynn Hampton, CPA, Vice President for Finance and Chief Financial Officer Andrew T. Rountree, CPA, Deputy Chief Financial Officer Rita Alston, Budget Manager INTENTIONALLY LEFT BLANK TABLE OF CONTENTS Page President=s Budget Message....................................................................................................... 1 BUDGET PROGRAMS AND ORGANIZATION Budget for Aviation and Dulles Corridor Enterprise Funds .......................................... 15 Purpose, Mission, and Goals.......................................................................................... 17 Budget Preparation, Reporting and Amendment Process .............................................. 19 Budget Calendar for 2010 .............................................................................................. 22 Organization Structure ..................................................................................................