2013 ANNUAL BUDGET & APPROPRIATIONS ORDINANCE GREATER ROCKFORD AIRPORT AUTHORITY • FOR THE FISCAL YEAR OF 2013 • ROCKFORD, ILLINOIS CHICAGO ROCKFORD INTERNATIONAL AIRPORT Mission The Chicago Rockford International Airport exists to create regional economic opportunities through global aviation. Vision We will leverage our asset base to achieve significant growth in the following areas: Cargo Service – to increase national ranking in gross landed weight. Passenger Aviation – to provide a high level of hassle‐free customer satisfaction with additional destinations in niche markets. General and Corporate Aviation – to maintain, support and encourage expansion. Economic Development – to provide economic opportunities for growth. Education, Research and Development Initiatives – to leverage facility and available resources to enhance local aerospace initiatives in both the public and private sectors. Table of Contents TRANSMITTAL LETTER Budget Objectives ..................................................................................................................... 1 Overview and Economic Conditions ........................................................................................ 2 Budget Summary ....................................................................................................................... 6 History ............................................................................................................................. 6 Organization ............................................................................................................................ 8 Strategic Plan .......................................................................................................................... 11 Financial Policies .................................................................................................................... 14 Budget Document ................................................................................................................... 19 Budget Process ........................................................................................................................ 19 Distinguished Budget Presentation Award ............................................................................. 20 Revenue ............................................................................................................................... 22 Expenditures . .......................................................................................................................... 23 Debt Service ........................................................................................................................... 25 Capital Improvement Program ................................................................................................ 26 Net Assets .......................................................................................................................... 28 Designated Assets ................................................................................................................... 28 Acknowledgement .................................................................................................................. 30 BUDGET SUMMARY Summary ............................................................................................................................... 31 REVENUE OPERATING Summary ............................................................................................................................... 32 Budget ............................................................................................................................... 34 Justifications ........................................................................................................................... 35 OPERATING EXPENSES Summary ............................................................................................................................... 39 Combined Departmental Budgets........................................................................................... 40 Finance and Administration Department Summary ............................................................................................................................... 42 Budget ............................................................................................................................... 45 Justifications ........................................................................................................................... 46 Facilities and Maintenance Department Summary ............................................................................................................................... 51 Budget ............................................................................................................................... 53 Justifications ........................................................................................................................... 55 Operations Department Summary ............................................................................................................................... 61 Budget ............................................................................................................................... 63 Justifications ........................................................................................................................... 64 Marketing Department Summary ............................................................................................................................... 67 Budget ............................................................................................................................... 69 Justifications ........................................................................................................................... 70 Terminal Service Department Summary ............................................................................................................................... 73 Budget ............................................................................................................................... 75 Justifications ........................................................................................................................... 76 AirFest Department Summary ............................................................................................................................... 79 Budget ............................................................................................................................... 81 Justifications ........................................................................................................................... 82 Cargo Development Department Summary ............................................................................................................................... 86 Budget ............................................................................................................................... 87 Justifications ........................................................................................................................... 88 Passenger Development Department Summary ............................................................................................................................... 90 Budget ............................................................................................................................... 92 Justifications ........................................................................................................................... 93 NON‐OPERATING REVENUES AND EXPENSES Budget ............................................................................................................................... 96 Justifications ........................................................................................................................... 97 CAPITAL IMPROVEMENT PROGRAM ................................................................................................... 98 EXHIBITS Exhibit 1 Tentative Budget and Appropriation Ordinance ................................................... 107 Exhibit 2 Rate & Charges Ordinance .................................................................................... 109 Exhibit 3 Acronym and Glossary of Terms ............................................................................ 111 Exhibit 4 Statistics ................................................................................................................. 116 Exhibit 5 Fiscal Year 2013 Budget and Appropriation Ordinance ........................................ 122 July 27, 2012 The Honorable Chairman and Board of Commissioners Greater Rockford Airport Authority 60 Airport Drive Rockford, IL 61109 Dear Mr. Chairman and Commissioners: Respectfully presented is the annual budget of the Greater Rockford Airport Authority (Authority) as approved by the Board of Commissioners July 26, 2012. The Authority operates the Chicago Rockfford International Airport (RFD). The budget includes plans and resources to move toward the strategic goals, which were approveed in January by our Board of Commissioners with a new mission and vision to market RFD on many fronts. This includes continued efforts to grow passengers, promote the annual AirFest and gain recognition as one of the region’s premier events that allows us to showcase the many assets of RFD and make the RFD cargo capabilities known across the