Reno-Tahoe Airport Authority FY 2017-18 ANNUAL BUDGET Table of Contents SECTION 1 – Introduction and Summary Airport System Overview. ......................................................................................... 1-2 National and Regional Economic Outlook. ............................................................. 2-13 Air Service Market Update. ................................................................................... 13-17 Air Cargo Update. .................................................................................................. 17-19 Operating Environment. ........................................................................................ 19-29 Budget Process. ..................................................................................................... 29-30 Revenue Bond Resolution .......................................................................................... 30 Planning for the Future .......................................................................................... 30-32 Budget Document Structure ....................................................................................... 32 Conclusion ............................................................................................................. 32-33 Acknowledgments ...................................................................................................... 33 Distinguished Budget Presentation Award ................................................................. 34 SECTION 2 – Executive Summary Airline Activity Forecast ....................................................................................... 35-36 Aircraft Landed Weight Forecast ............................................................................... 37 Financial Summary ..................................................................................................... 38 Revenue Forecast ................................................................................................... 38-40 Airline Revenues ................................................................................................... 41-43 Non-Airline Revenues ................................................................................................ 43 Non-Operating Revenues ...................................................................................... 43-44 Operation and Maintenance Budget ...................................................................... 44-47 Personnel Complement ............................................................................................... 47 Debt Service .......................................................................................................... 47-48 Property, Plant and Equipment .............................................................................. 48-49 Capital Projects ........................................................................................................... 49 Revenue Sharing Credit ......................................................................................... 49-50 SECTION 3 – Strategic Initiatives and Budget Goals Mission Statement ...................................................................................................... 51 Vision Statement ......................................................................................................... 51 Strategic Priorities ................................................................................................. 51-56 Guiding Principles/Operating Practices ................................................................. 56-57 FY 2017-18 Budget – Resource Identification ...................................................... 57-60 Department Responsibilities and Initiatives ............................................................... 60 ** Hyperlinks are Active i Reno-Tahoe Airport Authority FY 2017-18 ANNUAL BUDGET Table of Contents SECTION 4 - Organization Guide Board of Trustees........................................................................................................ 61 Additions or Changes ............................................................................................ 61-64 Vacant Positions ......................................................................................................... 65 Organization Chart ..................................................................................................... 66 Personnel Complement Summary .............................................................................. 67 Personnel Complement Detail ............................................................................... 68-73 SECTION 5 Financial and Budgetary Policies Basis of Accounting/Budgeting ................................................................................. 74 Legal Requirements ............................................................................................... 74-75 Revenue ...................................................................................................................... 75 Airline Agreement ................................................................................................. 75-78 Bond Resolution – Trust Funds ............................................................................. 78-81 Liquidity and Working Capital Policy ................................................................... 81-83 Investment Policy .................................................................................................. 83-84 Debt Management .................................................................................................. 84-85 Budget Process ...................................................................................................... 85-86 Budgeted Revenue Sharing ........................................................................................ 87 Summary of Sources and Uses of Funds .................................................................... 88 Projected Trust Funds Balances ................................................................................. 89 Days Cash on Hand .................................................................................................... 90 SECTION 6 Revenues Revenues ................................................................................................................ 91-92 Operating Revenue Pie Chart ..................................................................................... 93 Revenue Summary ............................................................................................... 94-112 Budgeted Revenues ........................................................................................... 113-115 Non-Airline Revenues .............................................................................................. 116 SECTION 7 Expenditures Expenditures ...................................................................................................... 117-125 O&M Expenditure Pie Chart .................................................................................... 126 Summary of Budgeted Expenditures ........................................................................ 127 Resources Applied by Organizational Unit .............................................................. 128 Departmental O&M Expenditure Pie Chart ............................................................. 129 Board of Trustees Reporting Departments Board of Trustees, Internal Audit, General Counsel Summary ......................... 130-131 ** Hyperlinks are Active ii Reno-Tahoe Airport Authority FY 2017-18 ANNUAL BUDGET Table of Contents Board of Trustees...................................................................................................... 132 Internal Audit ............................................................................................................ 133 General Counsel ....................................................................................................... 134 President/CEO Reporting Departments President/CEO ................................................................................................... 135-138 Air Service Business Development ................................................................... 139-148 Marketing and Public Affairs ............................................................................ 149-159 Airport Economic Development ........................................................................ 160-168 Outside Properties .............................................................................................. 169-170 Exec. Vice-President/COO Reporting Departments Executive Vice-President/COO ......................................................................... 171-174 Human Resources .............................................................................................. 175-183 Technology and Information Systems ............................................................... 184-190 Reno-Stead Airport ............................................................................................ 191-194 Unmanned Aircraft Systems ..................................................................................... 195 Finance and Administration Reporting Departments Accounting and Administration ......................................................................... 196-198 Purchasing and Materials Management ............................................................