Reno-Tahoe Airport Authority FY 2016-17 ANNUAL BUDGET Table of Contents SECTION 1 – Introduction and Summary Introduction. .............................................................................................................. 1-2 National and Regional Economic Outlook. ............................................................. 2-13 Air Service Market Update. ................................................................................... 13-17 Air Cargo Update. .................................................................................................. 18-19 Financial News. ..................................................................................................... 19-21 Operating Environment. ........................................................................................ 21-28 Budget Process. ..................................................................................................... 28-29 Budget Document Structure ....................................................................................... 29 Revenue Bond Resolution ..................................................................................... 29-30 Planning for the Future .......................................................................................... 30-32 Conclusion ............................................................................................................. 32-33 Acknowledgments ...................................................................................................... 33 Distinguished Budget Presentation Award ................................................................. 34 SECTION 2 – Executive Summary Airline Activity Forecast ....................................................................................... 36-39 Aircraft Landed Weight Forecast ............................................................................... 39 Financial Summary ..................................................................................................... 40 Revenue Forecast ................................................................................................... 40-42 Airline Revenues ................................................................................................... 42-44 Non-Airline Revenues ........................................................................................... 44-45 Non-Operating Revenues ........................................................................................... 45 Operation and Maintenance Budget ...................................................................... 45-48 Personnel Complement ............................................................................................... 48 Debt Service .......................................................................................................... 48-49 Property, Plant and Equipment .............................................................................. 49-50 Capital Projects ........................................................................................................... 50 Revenue Sharing Credit ......................................................................................... 50-51 SECTION 3 – Strategic Initiatives and Budget Goals Mission Statement ...................................................................................................... 52 Vision Statement ......................................................................................................... 52 Strategic Priorities ................................................................................................. 52-57 Guiding Principles/Operating Practices ................................................................. 57-58 FY 2015-16 Budget – Resource Identification ...................................................... 58-61 FY 2014-15 Budget Strategic Initiatives Assessment ........................................... 61-64 i Reno-Tahoe Airport Authority FY 2016-17 ANNUAL BUDGET Table of Contents SECTION 4 - Organization Guide Board of Trustees........................................................................................................ 65 Additions or Changes ............................................................................................ 65-67 Vacant Positions .................................................................................................... 67-68 Organization Chart ..................................................................................................... 69 Personnel Complement Summary .............................................................................. 70 Personnel Complement Detail ............................................................................... 71-76 SECTION 5 Financial and Budgetary Policies Basis of Accounting/Budgeting ................................................................................. 77 Legal Requirements .................................................................................................... 77 Revenue ................................................................................................................. 77-78 Airline Agreement ................................................................................................. 78-80 Bond Resolution – Trust Funds ............................................................................. 80-84 Liquidity and Working Capital Policy ................................................................... 84-85 Investment Policy .................................................................................................. 85-86 Debt Management .................................................................................................. 86-87 Budget Process ...................................................................................................... 87-88 Budgeted Revenue Sharing ........................................................................................ 89 Summary of Sources and Uses of Funds .................................................................... 90 Projected Trust Funds Balances ................................................................................. 91 Days Cash on Hand .................................................................................................... 92 SECTION 6 Revenues Revenues ................................................................................................................ 93-94 Operating Revenue Pie Chart ..................................................................................... 95 Revenue Summary ............................................................................................... 96-112 Budgeted Revenues ........................................................................................... 113-115 Non-Airline Revenues .............................................................................................. 116 SECTION 7 Expenditures Expenditures ...................................................................................................... 117-123 O&M Expenditure Pie Chart .................................................................................... 124 Summary of Budgeted Expenditures ........................................................................ 125 Resources Applied by Organizational Unit .............................................................. 126 Departmental O&M Expenditure Pie Chart ............................................................. 127 Board of Trustees Reporting Departments Board of Trustees, Internal Audit, General Counsel Summary ......................... 128-129 ii Reno-Tahoe Airport Authority FY 2016-17 ANNUAL BUDGET Table of Contents Board of Trustees...................................................................................................... 130 Internal Audit ............................................................................................................ 131 General Counsel ....................................................................................................... 132 President/CEO Reporting Departments President/CEO ................................................................................................... 133-135 Air Service Business Development ................................................................... 136-145 Marketing and Public Affairs ............................................................................ 146-155 Airport Economic Development ........................................................................ 156-165 Outside Properties .............................................................................................. 166-167 Exec. Vice-President/COO Reporting Departments Executive Vice-President/COO ......................................................................... 168-171 Human Resources .............................................................................................. 172-182 Technology and Information Systems ............................................................... 183-188 Reno-Stead Airport ............................................................................................ 189-195 Unmanned Aircraft Systems ..................................................................................... 196 Finance and Administration Reporting Departments Accounting and Administration ......................................................................... 197-200 Purchasing