ALBANY COUNTY AIRPORT AUTHORITY 2009 Operating Budget Adopted December 1, 2008 A component unit of the County of Albany, Town of Colonie, New York ALBANY COUNTY AIRPORT AUTHORITY Albany, New York 12211-1057 BOARD MEMBERS DAVID E. LANGDON - Chairman HENRY E. DENNIS, JR. ELLIOTT A. SHAW JOHN A. GRAZIANO, JR. DANIEL M. SLEASMAN RICHARD J. SHERWOOD 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 – 1-4 Activity Projections for 2009------------------------------------------------------------------------- 1-4 Airline Use and Lease Agreement----------------------------------------------------------------- 1-4 Airport and Fixed Based Operations Operating Agreements------------------------------- 1-4 – 1-5 2009 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 2. AIRPORT AUTHORITY OVERVIEW Organization -------------------------------------------------------------------------------------------- 2-1 – 2-2 Vision, Mission, and Values ----------------------------------------------------------------------- 2-2 2009 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 Primary Trade Area ---------------------------------------------- 2-9 Albany International Airport Non-Stop Destinations ------------------------------------------ 2-10 Albany International Airport Property Inventory------------------------------------------------ 2-11 Airport Layout ----------------------------------------------------------------------------------------- 2-12 Comparison of Geographic Distance ------------------------------------------------------------- 2-13 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 Capital Region Unemployment Rate-------------------------------------------------------------- 2-18 3. REVENUES Description of Revenues----------------------------------------------------------------------------- 3-1 – 3-2 Revenue Summary------------------------------------------------------------------------------------ 3-2 – 3-13 Revenues, Audited 2007, Adopted 2008, Projected 2008, and Budget 2009---------- 3-14 – 3-15 4. EXPENSES Summary of Expenses-------------------------------------------------------------------------------- 4-1 Description of 2009 Expense Budget Items -------------------------------------------------- 4-1 – 4-4 Operating Expenses by Category ---------------------------------------------------------------- 4-5 Operating Expenses by Department ------------------------------------------------------------ 4-6 2009 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, Goals and Objectives and Summary of Expenses-------------------------------------------------------------------------- 5-1 – 5-22 AvPort’s 2009 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 2009 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, Goals and Objectives and Summary of Expenses----------------------------------------------------------- 7-1 – 7-8 ACAA’s 2009 Expenditure Budget by Line Items---------------------------------------------- 7-9 – 7-11 ACAA’s Schedule of Salaries and Benefits------------------------------------------------------ 7-11 ACAA’s Organizational Chart ----------------------------------------------------------------------- 7-12 8. INDEBTEDNESS Debt Policy------------------------------------------------------------------------------------------------ 8-1 – 8-2 Debt Limit-------------------------------------------------------------------------------------------------- 8-2 Graph Debt Outstanding 1997 – 2035------------------------------------------------------------ 8-2 Debt Service per Enplaned Passenger------------------------------------------------------------ 8-3 Master Bond Resolution------------------------------------------------------------------------------- 8-3 Debt Outstanding-------------------------------------------------------------------------------------- 8-3 – 8-4 Swaption------------------------------------------------------------------------------------------------- 8-4 Debt Issued by the County-------------------------------------------------------------------------- 8-5 Schedules of Debt Service and their Purpose ------------------------------------------------ 8-6 – 8-16 Passenger Facility Charges (PFC’s)-------------------------------------------------------------- 8-17 Debt Service Coverage ----------------------------------------------------------------------------- 8-18 Calculation of PFC Revenues --------------------------------------------------------------------- 8-19 Debt Schedules Audited 2007, Adopted 2008, Projected 2008, and Budget 2009--- 8-20 – 8-24 9. CAPITAL HISTORY History Airport Development ----------------------------------------------------------------------- 9-1 Albany Airport Authority Created ------------------------------------------------------------------ 9-1 – 9-2 Capital Developments by the Authority----------------------------------------------------------- 9-2 – 9-6 Five Year Capital Programs ----------------------------------------------------------------------- 9-5 – 9-6 Capital Development -------------------------------------------------------------------------------- 9-6 2009 Capital Expenditures -------------------------------------------------------------------------- 9-6 – 9-10 Five Year Capital Plan Goals and Objectives ------------------------------------------------- 9-11 Capital Program for 2005 – 2009------------------------------------------------------------------ 9-11 – 9-16 Potential Funding Sources--------------------------------------------------------------------------- 9-16 Five Year Capital Plan-------------------------------------------------------------------------------- 9-17 2005-2008 YTD Through June with 2009 projected Projects------------------------------ 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