ALBANY COUNTY AIRPORT AUTHORITY 2010 Operating Budget Adopted December 7, 2009 A component unit of the County of Albany, in the Town of Colonie, New York ALBANY COUNTY AIRPORT AUTHORITY Albany, New York 12211-1057 BOARD MEMBERS DAVID E. LANGDON - Chairman JOHN A. GRAZIANO, JR. ANTHONY GORMAN REV. KENNETH DOYLE ELLIOTT A. SHAW DENNIS J. FITZGERALD DORSEY M. WHITEHEAD ______________________________________________________________ ______________________________________________________________ SENIOR STAFF JOHN A. O’DONNELL WILLIAM J. O’REILLY, CPA Chief Executive Officer Chief Financial Officer MARGARET HERRMANN RIMA A. CERRONE Chief Accountant Budget & Performance Manager _____________________ www.albanyairport.com CUSIP #012123XXX ALBANY COUNTY AIRPORT AUTHORITY TABLE OF CONTENTS PAGES 1. TRANSMITTAL LETTER/BUDGET MESSAGE Status of Airline Industry----------------------------------------------------------------------------- 1-1 – 1-2 Air Trade Area served by Albany International Airport--------------------------------------- 1-2 Status of Albany International Airport------------------------------------------------------------- 1-2 – 1-3 Activity Projections for 2010------------------------------------------------------------------------- 1-4 Airline Use and Lease Agreement----------------------------------------------------------------- 1-4 Airport and Fixed Based Operations Operating Agreements------------------------------- 1-4 – 1-5 2010 Operating Budget Financial Highlights---------------------------------------------------- 1-5 – 1-6 Airline Rates and Charges Summary------------------------------------------------------------- 1-6 – 1-7 GAAP Financial Statements------------------------------------------------------------------------- 1-7 – 1-8 Budget Summary--------------------------------------------------------------------------------------- 1-8 – 1-9 Award----------------------------------------------------------------------------------------------------- 1-9 Acknowledgments------------------------------------------------------------------------------------- 1-10 2. AIRPORT AUTHORITY OVERVIEW Organization -------------------------------------------------------------------------------------------- 2-1 – 2-2 Vision, Mission, and Values ------------------------------------------------------------------------ 2-2 2010 Organizational Strategic Goals ------------------------------------------------------------- 2-3– 2-4 Budget Process --------------------------------------------------------------------------------------- 2-4– 2-5 Summary of Financial Policies---------------------------------------------------------------------- 2-6– 2-8 Economic Information--------------------------------------------------------------------------------- 2-8– 2-9 Albany International Airport Nonstop Scheduled Passenger Service-------------------- 2-9 Albany International Airport Property Inventory------------------------------------------------ 2-10– 2-11 Comparison of Geographic Distance ------------------------------------------------------------- 2-12 Average Fare Comparison of Selected commercial Airports------------------------------- 2-13 Graph of Air Trade Population --------------------------------------------------------------------- 2-14 Albany, the Heart of Tech Valley ------------------------------------------------------------------ 2-14– 2-15 Tech Valley Growth Indicators --------------------------------------------------------------------- 2-16 Colleges and Universities in the Capital District------------------------------------------------ 2-17 Major Private Sector Employers in the Capital Region--------------------------------------- 2-17 Graph of Capital Region Unemployment Rate------------------------------------------------- 2-18 3. REVENUES Summary of Expenses-------------------------------------------------------------------------------- 3-1 Description of Revenues----------------------------------------------------------------------------- 3-1 – 3-12 Revenues, Audited 2008, Adopted 2009, Projected 2009, and Budget 2010---------- 3-13 – 3-14 4. EXPENSES Description of 2010 Expense Budget Items -------------------------------------------------- 4-1 – 4-4 Operating Expenses by Category ---------------------------------------------------------------- 4-5 Operating Expenses by Department ------------------------------------------------------------ 4-6 2010 Expenditures by Line Item ---------------------------------------------------------------- 4-7 – 4-10 5. AVPORT’S COST CENTER STRUCTURE Summary of AvPort’s Cost Center Structure---------------------------------------------------- 5-1 AvPort’s Cost Center Structure, Performance Measurements, 2009 Achievements Goals and Objectives and Summary of Expenses---------------------------------------------- 5-1 – 5-22 AvPort’s 2010 Expenditure Budget by Line Items--------------------------------------------- 5-23 – 5-25 AvPort’s Schedule of Salaries and Benefits----------------------------------------------------- 5-26 AvPort’s Organizational Chart---------------------------------------------------------------------- 5-27 6. MILLION AIR COST CENTERS Summary of Million Air’s Cost Center Structure------------------------------------------------ 6-1 – 6-2 Million Air’s Cost Center Structure, Performance Measurements, Goals and Objectives and Summary of Expenses----------------------------------------------------------- 6-2 – 6-8 Million Air’s 2010 Expenditure Budget by Line Items----------------------------------------- 6-9– 6-11 Million Air’s Schedule of Salaries and Benefits------------------------------------------------- 6-11 Million Air’s Organizational Chart ----------------------------------------------------------------- 6-12 7. ALBANY COUNTY AIRPORT AUTHORITY (ACAA) Summary of ACAA Cost Center Structure------------------------------------------------------- 7-1 ACAA’s Cost Center Structure, Performance Measurements, 2009 Achievements, Goals and Objectives and Summary of Expenses-------------------------------------------- 7-1 – 7-7 ACAA’s 2010 Expenditure Budget by Line Items---------------------------------------------- 7-8 – 7-10 ACAA’s Schedule of Salaries and Benefits------------------------------------------------- 7-10 ACAA’s Organizational Chart ----------------------------------------------------------------------- 7-11 8. INDEBTEDNESS Debt Policy------------------------------------------------------------------------------------------------ 8-1 Debt Limit-------------------------------------------------------------------------------------------------- 8-2 Graph Debt Outstanding1997 – 2035------------------------------------------------------------- 8-2 Master Bond Resolution------------------------------------------------------------------------------- 8-3 Debt Outstanding-------------------------------------------------------------------------------------- 8-3 Swaption------------------------------------------------------------------------------------------------- 8-4 Debt Issued by the County-------------------------------------------------------------------------- 8-5 Schedules of Debt Service and their Purpose ------------------------------------------------ 8-6 – 8-14 Passenger Facility Charges (PFC’s)-------------------------------------------------------------- 8-15 Debt Service Coverage ----------------------------------------------------------------------------- 8-16 Calculation of PFC Revenues --------------------------------------------------------------------- 8-17 Debt Schedules Audited 2008, Adopted 2009, Projected 2009, and Budget 2010--- 8-18 – 8-22 9. CAPITAL HISTORY History Airport Development ----------------------------------------------------------------------- 9-1 Albany Airport Authority Created ------------------------------------------------------------------ 9-1– 9-2 Capital Developments by the Authority----------------------------------------------------------- 9-2– 9-5 Five Year Capital Programs ----------------------------------------------------------------------- 9-5 – 9-6 Capital Development -------------------------------------------------------------------------------- 9-6 2010 Capital Expenditures -------------------------------------------------------------------------- 9-7 – 9-10 Five Year Capital Plan Goals and Objectives ------------------------------------------------- 9-11 Capital Program for 2010 – 2014------------------------------------------------------------------ 9-11 – 9-16 Potential Funding Sources--------------------------------------------------------------------------- 9-16 Five Year Capital Plan-------------------------------------------------------------------------------- 9-17 – 9-18 10. AIRLINES RATES AND CHARGES SUMMARY Airlines Rates and Charges Summary--------------------------------------------------------- 10-1 Cost Centers and Allocations-------------------------------------------------------------------- 10-1 – 10-2 Schedules for Rates and Charges-------------------------------------------------------------- 10-3 – 10-18 11. GLOSSARY 11-1 – 11-6 ALBANY COUNTY AIRPORT AUTHORITY TEL: 518-242-2222 ALBANY INTERNATIONAL AIRPORT ADMIN FAX: 518-242-2641 ADMINISTRATION BUILDING FINANCE FAX: 518-242-2640 SUITE 200 SITE: www.albanyairport.com ALBANY, NEW YORK 12211-1057 December 2009 TO THE MEMBERS OF THE AUTHORITY: The Finance Department herein presents Albany International Airport’s (ALB) operating budget for calendar year 2010. This represents the 16th annual operating budget prepared by the Authority since