2015 - Chicago Rockford International Airport · Myers, and Phoenix/Mesa. Apple Vacations offers...
Transcript of 2015 - Chicago Rockford International Airport · Myers, and Phoenix/Mesa. Apple Vacations offers...
CHICAGO ROCKFORD INTERNATIONAL AIRPORT
GREATER ROCKFORD AIRPORT AUTHORITYFOR THE FISCAL YEAR OF 2015
ROCKFORD, ILLINOIS
ANNUAL BUDGET & APPROPRIATION ORDINANCE
2015
Fiscal Year 2015 Annual Budget and Appropriations Ordinance
For the period of May 1, 2014‐April 30, 2015
Greater Rockford Airport Authority
Chicago Rockford International Airport
Rockford, Illinois
Board of Commissioners
Paul Cicero, Chairman
Tom Myers, Vice Chairman
Ray Wetzel, Secretary
Kenneth Edward Copeland, Treasurer
Patrick Derry
Tom Dal Santo
Michael P. Dunn, Executive Director
Amy M. Ott, AAE, CPA, Deputy Director
Jan Benoit, Finance Manager
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 ............................................................................................................................. 7 Organization ............................................................................................................................ 8 Strategic Plan .......................................................................................................................... 11 Financial Policies .................................................................................................................... 13 Budget Document ................................................................................................................... 19 Budget Process ........................................................................................................................ 19 Distinguished Budget Presentation Award ............................................................................. 20 Revenues ............................................................................................................................... 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 ............................................................................................................................... 43 Budget ............................................................................................................................... 46 Justifications ........................................................................................................................... 47
Facilities and Maintenance Department Summary ............................................................................................................................... 52 Budget ............................................................................................................................... 54 Justifications ........................................................................................................................... 55
Operations Department Summary ............................................................................................................................... 61 Budget ............................................................................................................................... 63 Justifications ........................................................................................................................... 64
Marketing Department Summary ............................................................................................................................... 67 Budget ............................................................................................................................... 68 Justifications ........................................................................................................................... 69
Terminal Service Department Summary ............................................................................................................................... 70 Budget ............................................................................................................................... 72 Justifications ........................................................................................................................... 73
AirFest Department Summary ………………………………………………………………………………………………………………………….77 Budget ………………………………………………………………………………………………………………………….78 Justifications ……………………………………………………………………………………………………………………..79 Business Development Department
Summary ............................................................................................................................... 82 Budget ............................................................................................................................... 83 Justifications ........................................................................................................................... 84
Air Service Development Department Summary ............................................................................................................................... 86 Budget ............................................................................................................................... 88 Justifications ........................................................................................................................... 89
NON‐OPERATING REVENUES AND EXPENSES Budget ............................................................................................................................... 91 Justifications ........................................................................................................................... 92
CAPITAL IMPROVEMENT PROGRAM ................................................................................................... 93 EXHIBITS
Exhibit 1 Tentative Budget and Appropriation Ordinance ..................................................... 99 Exhibit 2 Rate & Charges Ordinance .................................................................................... 101 Exhibit 3 Acronym and Glossary of Terms ............................................................................ 103 Exhibit 4 Statistics ................................................................................................................. 108 Exhibit 5 Fiscal Year 2015 Budget and Appropriation Ordinance ........................................ 113
May 23, 2014 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 May 22, 2014. The Authority operates the Chicago Rockford International Airport (RFD). The budget includes plans and resources to move toward the strategic goals. This includes continued efforts to grow passengers, work to develop underutilized areas of the airport and make the RFD cargo capabilities known across the globe. The capital budget includes funds for significant infrastructure upgrades to support the expansion and growth of aviation development. Passenger retention and development is also a key part of the FY2015 plan. The budget strategically directs the allocation of resources to best enable the Authority to operate RFD in a manner that exceeds customer expectations and meets all safety and security requirements. It funds operations, activities, infrastructure, equipment and technology enhancements to meet the strategic goals of the Authority for the next year and into the future. Budget Objectives The Authority’s goals for the FYE15 budget are to allocate available resources to RFD programs and services to: Operate a safe and secure airport. Meet all regulatory, legal and contractual requirements. Continue to exceed expectations to the customers of RFD with exceptional customer service and
care. Operate an efficient and financially self‐sustaining organization. Provide the necessary resources to accomplish the Authority’s strategic plan.
The budget objectives are further broken down within each of the departmental and capital budgets for the year.
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Overview and Economic Conditions The Authority is one of the oldest airport authorities in the United States. Formed in 1946, subsequent to enabling legislation, the Authority has four communities who appoint a seven‐member Board of Commissioners. The Board of Commissioners is responsible for setting policies and ordinances governing the operations of the Authority, which are carried out or enforced by a professional staff. We have unrestricted airspace and a seven day 24 hour FAA Air Traffic Control Tower. RFD is a world‐class airport capable of landing any aircraft in Category II/III conditions. RFD is a United States Customs Port of Entry and grantee of Foreign Trade Zone (FTZ) #176. The diverse activities at RFD cause it to have a greater economic impact on the region it serves than any other commercial service airport in the State of Illinois, excluding the City of Chicago's airport system. RFD is located in the southwest quadrant of Rockford, Illinois with easy access from five major highways. It is located approximately 85 miles northwest of Chicago, Illinois; 90 miles southwest of Milwaukee, Wisconsin; 60 miles southwest of Madison, Wisconsin; 90 miles east of Dubuque, Iowa; and 90 miles northwest of Moline, Illinois. The airport covers an area of about 3,000 acres with 800 of those acres airfield related. The market service area ranges from 2,500,000 people at 60 minutes to 8,400,000 people at 90 minutes. RFD is geographically centered within the region.
The economic condition and outlook for the region has improved slightly over the prior year. Employment needs are increasing slowly, but greater than the needs in the last two prior years and the unemployment rate decreased from 9.8% to 9.1%. The region continues to expand and diversify its industrial base and employment opportunities. The Metropolitan Statistical Area (MSA) is over 350,000 people and is the fastest growing MSA in the state of Illinois and has been for two consecutive years. This growth is expected to continue. The region is a community that still understands shift work and values companies that need employees with industrial skills. A recent study by The Pathfinders (Dallas, TX) polled area employers on existing workforce characteristics, found that the labor‐shed actually consists of a five‐county region with a population of over 807,000 individuals and that the workforce was over 435,000 people. This number far exceeds the federal government’s assumption of a two‐county MSA population of approximately 350,000 people and a labor force of about 175,000. The region’s low cost of living and competitive wage rates benefit both employer and employee.
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Overview and Economic Conditions(con’t) Our region is considered an excellent location for logistics services, warehouses and distribution centers, aerospace, on and off road vehicle manufacturing, industrial machinery, and metals manufacturing, as well as back office operations/call centers, professional business services, food processing, and chemicals manufacturing. The area lies in the heart of the Midwest at the crossroads of America and in very close proximity to Chicago, Milwaukee, Madison, Quad‐Cities, and Peoria. As part of the Greater Chicago region, Rockford is part of the third‐largest multi‐modal system in the world and the largest in the U.S. From the Rockford area, businesses can reach 80% of U.S. households within a 24‐hour truck drive. The financial condition of the Authority is primarily dependent upon the amount of aircraft utilization at RFD. That utilization, in turn, is dependent upon several factors: the amount of cargo that is sorted at the United Parcel Service hub; the number of passenger airlines that service RFD; the number of passengers that use the airport; the national economy, which influences buying, and subsequent shipping habits; and, the regional economy that influences the willingness of the consumer to purchase air travel. RFD is home to the second largest air hub sorting facility in United Parcel Service's system. Fees associated with cargo account for 36% of the operating revenue of the Authority. The Authority is not immune to the global economic crisis and this year statistics and revenues reflect that impact. The most recent FAA cargo reports state RFD is the 25th largest cargo airport in the United States. The annual total of gross landed weight for all cargo aircraft for the year was down 3.40%. A majority of this was a reduction in flights for UPS during the years, which are all domestic flights. The reduction was also a result of a limited number of charter cargo operations being less than in past years. Since all of our cargo operations are domestic, our strategic plan focuses on international cargo as a growth area. This will help mitigate some fluctuations. Cargo is a leading economic indicator and we fully believe that as the economy begins to grow, so will our cargo activities. The new International Cargo apron and facility can allow RFD to compete globally and become one of the top cargo airports in the world. It is estimated that RFD creates an economic impact approximately $1 billion annually to the region. Feeding off the cargo airlines are 60 motor freight carriers serving 37 terminals. The goal of growth in international cargo at RFD is a paradigm shift for the movement of cargo in the Midwest region of the United States. FYE15 projects no increase in weights; however, an increase in rates will help offset the limited growth.
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Overview and Economic Conditions(con’t)
‐
200
400
600
800
1,000
1,200
1,400
1,600LBS
Millions
Cargo Landed Weight
Passenger growth continues to be a high priority as outlined in the strategic plan. As the volatility of the passenger airlines continues it is important for RFD to diversify the base of airlines that operate at RFD. Currently Allegiant Air offers service to Las Vegas, Orlando/Sanford, Clearwater/St Pete, Punta Gorda/Ft Myers, and Phoenix/Mesa. Apple Vacations offers seasonal service to Cancun, Punta Cana, and Puerto Vallarta. Allegiant Air accounts for 80% of all seats currently available at RFD. Our goal is to increase the number of passengers and airlines. Economic issues that are outside of our control can have an effect on this plan. These issues include: the current fuel price rise, the financial condition of the airlines, and any security and safety mandates issued. The Authority is mindful of these issues as they plan for the future. The last year has seen dramatic changes in our regional and global economic condition. The Authority is making every effort to continue to build and grow passenger service. Even though capacity has not returned to its previous levels, our average load factors are over 94%, so the demand is still there and the budget includes resources to continue marketing and developing the service. New service will begin in January to Puerto Vallarta on a seasonal basis with Apple Vacations. With these additions, RFD is projecting a 3% growth in passengers for the coming year.
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Overview and Economic Conditions(con’t)
‐
50,000
100,000
150,000
200,000
250,000
Passengers
The Foreign Trade Zone (FTZ) program creates a partnership between American business and the Federal government, increasing the global market share of U.S. businesses and retaining or creating jobs at home. The FTZ program fits the mission of the Authority to expand business opportunity, create jobs and assist local companies to compete more effectively in the global marketplace. We believe that the FTZ can be a catalyst to improve the economic and business climate of the region. Four of our sites/subzones are active Zone operators. In 2010, FTZ #176 received reorganization approval from the FTZ Board under the new Alternative Site Framework (ASF) system, which provides faster and cheaper access to program benefits for potential business partners in the first quarter of the fiscal year. Service is now readily available to prospects in all of Boone, Ogle, Lee, Stephenson, Winnebago as well as parts of Bureau, Kane and McHenry Counties, most of LaSalle and part of Putnam County. While the growth in movement of products through FTZ activated sites and subzones slowed in the recessionary economy, leadership expects growth to reach $500 million within the next few years. Interest in activation is growing, with 3‐4 additional applications anticipated during FYE15, with many more partners in the next two to three years.
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Budget Summary The budget presented has many highlights discussed in subsequent sections. Operating revenues is budgeted at $5,532,049 for FYE15, is an increase from the prior year budget mainly related to the airshow being added back this year. The decrease in the operating expenses is related to the same. Operating expenses are budgeted at $8,403,877 which is a 2.6% decrease compared to the prior year budgets.
FYE12 FYE13 BFYE14 Est. FYE14 BFYE15
Operating Revenue
Airport fees‐airside 1,967,889$ 1,884,418$ 2,008,395$ 1,906,774$ 2,010,075$
Airport fees‐landside ‐ rental car commissions 182,268 190,993 220,000 199,000 210,000
Lease revenue‐on airport 1,093,736 1,096,151 1,272,549 1,215,849 1,328,330
Lease revenue‐off airport 498,751 517,395 537,242 561,996 620,489
Airfest revenue 495,962 559,418 ‐ ‐ 605,000
Airport service fees 262,580 231,593 258,750 235,768 254,750
Other 452,140 426,740 445,655 432,837 503,405
Total Operating Revenue 4,953,326 4,906,708 4,742,591 4,552,224 5,532,049
Operating Expense
Personnel services (3,606,203) (3,829,977) (3,741,032) (3,972,556) (3,819,660)
Contractual services (4,349,187) (3,780,313) (2,958,075) (2,873,657) (3,005,860)
Commodities (935,767) (1,196,301) (1,198,987) (1,069,451) (1,286,917)
Other (502,226) 13,424 (286,440) (335,597) (291,440)
Total Operating Expense (9,393,382) (8,793,166) (8,184,534) (8,251,261) (8,403,877)
Net Operating Expense (4,440,056) (3,886,458) (3,441,942) (3,699,037) (2,871,828)
Non‐operating Revenue (Expense)
Interest income 33,880 19,318 25,000 16,183 20,000
Property tax levy‐operating 3,346,076 3,122,854 3,140,452 3,123,289 3,102,000
Replacement tax 525,140 520,646 523,449 595,828 602,222
AIP reimbursement funds 4,565,843 1,636,679 950,000 950,000 950,000
Passenger facil ity charges 522,905 474,257 511,991 526,343 559,926
Funds from auctioned equipment ‐ 2,937 100,000 20,980 75,000
Other credits (145,279) (325,000) ‐ ‐ ‐
Interest expense (144,047) (60,643) (68,000) (67,670) (72,000)
Total Non‐operating Revenue (Expense) 8,704,519 5,391,048 5,182,892 5,164,953 5,237,148
Debt Service, Sinking Fund Deposits & Other Uses
Debt service principal payments (266,900) (266,900) (233,750) (233,750) (253,750)
Debt Service ‐ ‐ ‐ ‐ 400,000
Sinking fund deposits/uses ‐ ‐ 13,500 ‐ 10,000
Total Debt Service and Sinking Fund Deposits (266,900) (266,900) (220,250) (233,750) 156,250
Net before Capital 3,997,562 1,237,689 1,520,700 1,232,166 2,521,569
Capital Improvement Program
Airside projects (6,560,030) (279,300) (279,300) (433,451) (527,000)
Landside projects (53,335) ‐ ‐ ‐ (713,000)
Terminal projects (111,806) (689,900) (689,900) (483,886) (534,000)
Administration projects (6,520) ‐ ‐ (96,075) (175,000)
Maintenance projects (224,864) (498,500) (498,500) (364,964) (416,980)
Operations projects (31,790) (45,000) (45,000) 47,247 (80,000)
Total Capital Improvements (6,988,345) (1,512,700) (1,512,700) (1,331,129) (2,445,980)
Excess Funds (2,990,783)$ (275,011)$ 8,000$ (98,963)$ 75,589$
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History Camp Grant In 1917, during World War I, RFD, then named “Camp Grant,” was a U.S. Army Calvary Camp. During World War II the Army transformed Camp Grant into a military training base and a prisoner of war detainment camp. In 1946, the State of Illinois adopted the Airport Authorities Act; thus, the Greater Rockford Airport Authority was created. The original Board of Commissioners requested and received a grant of 1,500 acres of federal land. The airfield was constructed using most of the military base infrastructure. Over the last 50 years, RFD has hosted numerous airlines including: Braniff, Ozark, Frontier, Midwest Express, TWA, American, Northwest, TransMeridian, Hooters Air, Sunship1 and United. Airlines currently serving RFD include Allegiant, Direct Air and Apple Vacations. RFD’s Terminal In 1987, a new terminal building was constructed to better meet the community’s passenger travel needs. Within the last few years, significant terminal internal reconstruction and reconfiguration projects have been completed to accommodate the many new passengers and to meet Transportation Security Administration requirements. The terminal is now at full build out and considering peak flow can accommodate up to 500,000 passengers. UPS In 1994, United Parcel Service constructed an air cargo distribution hub. The hub currently employs approximately 1,200 with an average of 22 daily‐scheduled cargo jet arrivals/departures ranging in size from 727‐100s to 747s. In 2006 UPS built a 70,000 square foot building for their new heavy freight business which began in the summer of 2006. This was the first building completed in the UPS network for the new heavy freight business. During fiscal year 2007, UPS completed $25 million dollars’ worth of redesign to the package handlers’ distribution hub to increase capacity. As a result, output increased by over 100%. Infrastructure Within the last several years, millions of federal dollars have been invested in airport infrastructure improvements. There are two runways: one is 8,200 feet in length; the longest is 10,000 feet in length. The 10,000 foot runway has a Category II/III Landing System, which is a valuable landing aid for commercial and private pilots. The current year budget includes the third and fourth phase of a multi‐year project or rebuild of the north/south runway 1/19, which shows the airports commitment to maintaining a world‐class facility for the flying public. In 1996, a two million‐gallon fuel storage facility funded by United Parcel Service, along with a perimeter roadway system, was constructed. The storage facility increases the stability of the airport now that fuel is immediately available. This storage facility is directly linked to an underground pipeline that ships all jet fuel necessary. There are future plans to expand the underground pipeline asset. Foreign Trade Zone #176 In July 1998, RFD became a User Fee Airport which brought Customs service to Rockford on a fee‐for‐service basis. On March 1, 1991, the FTZ Board in Washington, DC granted authority for FTZ #176 Site #1 (1972 acres) which encompassed the airport itself and some surrounding industrial properties. Port status was granted effective September 13, 1995, transferring the cost of the Customs operation to the
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History(con’t) federal government. RFD was the first User Fee Airport to be upgraded to Point Of Entry status. With a new addition of an international arrival gate in 2005, the US Customs and Border Protection (CBP) now maintains an office staffed full‐time at RFD with inspection services available 24 hours a day. In response to the creation of the Union Pacific Global III Intermodal Hub in Rochelle, over 1,000 acres of Greenfield space was added to our FTZ in Rochelle in 2005 and 2006; 74 acres in an industrial park in Woodstock was also part of the 2005 expansion. Our service area encompasses all or part of 10 north central Illinois counties: Winnebago, Boone, McHenry, Stephenson, Ogle, DeKalb, Kane, Lee, Bureau, Putnam and LaSalle. Environmental Issues The Authority is proactive to all environmental issues of the airport. A state‐of‐the‐art Glycol Retention/Treatment Facility was completed in 1994. An addition is currently being constructed to accommodate the NW cargo apron built in prior years as well as creating back‐up infrastructure options if at some point in the future there is the need to pump the glycol directly to the local reclamation facility. Glycol is the key liquid component used in deicing aircraft during the winter months. Organization The Board of Commissioners continues its aggressive stance to further grow all areas of airport development. The Authority is governed by a seven‐member Board of Commissioners. The members are appointed as follows:
The Mayor of the City of Rockford, 3 members; Winnebago County Board Chairman, 2 members; The Mayor of the City of Loves Park, 1 member; and The Village President of Machesney Park, 1 member.
The Board members serve five‐year terms, except that any person appointed to fill a vacancy will be appointed to serve the unexpired term. Members of the Board of Commissioners are eligible for reappointment. The Board selects an Executive Director to staff the respective departments and oversee the day‐to‐day operations.
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Organization(con’t)
Organizational Chart and Senior Management
Senior Management
Amy M. Ott, CPA Deputy Director of Administration & Finance Kenneth Ryan Deputy Director of Air Cargo Development Janette Benoit Finance Manager
Following outlines the changes in total staffing by fiscal year as well as the creation of new departments to further breakdown prior departments. Only a slight change in actual staff to better reflect the operational needs of the organization.
0
5
10
15
20
25
30
35
40
45
FYE09 FYE10 FYE11 FYE12 FYE13 FYE14
Personnel Positions by Department
Administration/Finance Air Service Marketing Facilities/MaintenanceTerminal Services AirFest OperationsCargo Development Passenger Development
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Organization(con’t) The Executive Director of the Authority reports to the Board of Commissioners. In BFYE 15, airport staff is comprised of 45 employees (including seven Commissioners) as follows the decrease from the prior year is the result of one less operations staff :
FYE13 FYE14 FYE15
Actual Actual Budget
Administration & Finance
Airport Commissioners 7 7 7
Executive Director 1 1 1
Deputy Directors 1 1 1
Managers 1 2 2
Properties Coordinator 1 0 0
Executive Assistant 1 1 1
Accounting Assistants 2 2 2
Administrative Assistants 1 1 1
Department Total 15 15 15
Air Service Marketing
Special Event Coordinator 1 0 0
Department Total 1 0 0
Facilities & Maintenance
Manager 1 1 1
Operations & Facilities Technician I 10 10 10
Operations & Facilities Technician II 4 4 4
Operations & Facilities Technician III 2 2 1
Department Total 17 17 16
Operations
Manager 1 1 1
Assistant Manager 0 1 1
Operations & Facilities Specialist 6 6 5
Department Total 7 8 7
Terminal Services
Operations & Facilities Technician III 3 3 4
Department Total 3 3 4
Cargo Development
Deputy Director 1 1 1
Passenger Development
Manager 1 1 1
Supervisor 2 1 1
Department Total 3 2 2
Total Organization 47 46 45
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Strategic Plan The Greater Rockford Airport Authority strategic plan is a tool for organizing the present on the basis of the projections of the desired future. It is a road map to lead the Authority from where it is now to where it would like to be in three to five years. The strategic planning process ensures that the most effective use is made of the Authority’s resources by focusing on key priorities. The budget incorporates the resources necessary to accomplish the goals of the strategic plan. The plan presented is a three year goal.
OBJECTIVES MEASURES TARGETS INITIATIVES
FINANCE AND
ADMINISTRATION
What must we deliver to our stakeholders to succeed financially?
Maintain financial stability
Maintain adequate reserves.
Maintain reserves equal to or greater than 4 months of expenses based on 3 year history.
Monitor reserves monthly.
Revenues Growth in diversified revenue sources.
Greater than 80% of revenues from other sources than UPS.
Monitor annual report, schedule of major revenue sources.
CUSTOMERS AND STAKEHOLDERS
To achieve our vision, how will we serve and manage our customers
who are airport users and stakeholders?
Expand cargo service to increase economic impact and viability.
Operations Enplaned/Deplaned cargo Landed aircraft weight Airline diversification Airlines/International
Ranking: Top 20 Operations increase: 20% Enplanements/Deplanements
increase: 27% Landed weight increase: 27% New airline operators: 3 International landed weight:
15% increase
Increase sales calls, public relations and global participation at tradeshows. Develop financial incentives to grow, and diversify domestic and international cargo activity.
Expand passenger service to respond to regional demand.
Destinations Passengers Regional Diversification
Ranking: Top 200 New destinations: 7 Passenger increase: 100% External usage: 70% increase
outside Winnebago County International traffic: 50%
increase
Develop incentives and/or marketing support to encourage existing and new airline partners to establish new destinations or substantially expand current service. Establish one‐off daily flying to multiple new top 30 destinations based on the market service area. Establish international and domestic seasonal flights in support of the travel industry. Create/maintain occasional charter flying to highly desired destinations as mechanism to promote RFD to industry and consumers.
Develop a business plan for heavy metal MRO operations
Business plan for heavy metal MRO
Present plan in 6‐9 mos. Accept plan in 9‐12 mos.
Research, prepare and present plan to understand MRO market.
Excel as a community partner for the region.
Participation and collaboration in the community.
Continue and/or increase participation.
Develop collaborative opportunities for promotion, education and recruitment through various businesses and community events.
Go Global, Air Show. Ice Sculpting Contest (clean snow), Cub Scouts, College/High School Interns.
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Strategic Plan(con't)
OBJECTIVES MEASURES TARGETS INITIATIVES
Expand FTZ Activity
Increase number of activated sites/subzones
Service Fee revenue to GRAA.
Throughput volume (product in and out).
Add an average of one new FTZ operator/year.
Annually generate revenue
through fees to cover 100% of total RFD operating cost for FTZ #176.
Increase throughput by $1
billion within five years.
Maintain strong working relationship with consulting firm, Point Trade Services, Inc. Continue development of strong regional network of economic development partners through Leadership Forum, Go Global, visits and attendance at their events. Increase regional public awareness through public speaking opportunities. Go Global, Stateline World Trade Association and other external networking opportunities.
Provide exceptional and continuously improving customer service.
Customer satisfaction Surveys show meet or exceed
customer satisfaction.
Periodic customer satisfaction surveys. Establish baseline for improvement.
OPERATIONS AND FACILITIES
What must we improve
in our facilities, processes and physical assets order to achieve our vision of safety and
security?
Provide a world class safe and secure airport.
FAA Annual Certification
TSA Audit Operational Status Workplace Safety
0 deficiencies 0 deficiencies 0 hours closed 5 or less OSHA recordable
event annually.
Ensure safe operational status during times of severe weather. Enhance safety, capacity, and marketability with the following: improved nav‐aids, perimeter roadway, airport control tower, rescue and firefighting, hydrant fueling.
Improve and upgrade infrastructure condition
Balance between new opportunities and maintenance of existing infrastructure
Make investments based on budget, capital, and master plan
Work order system that improves efficiencies and measures future needs. Preventative maintenance checks and services (PMCS) and scheduled equipment replacement program.
Protect and enhance the environment.
Energy/Fuel Savings Comprehensive environmental plan.
3% reduction in energy usage per year.
Environmental work plan (within 12 mos).
Utilization and expansion of conservation and alternative energy opportunities. Completion of an environmental work plan.
Enhancement of landside infrastructure and aesthetics
Airside/street side and facility improvements.
Kishwaukee Street entrance Falcon Road rehabilitation Work with local utility
providers to enhance safety and operational integrity of RFD.
Design and landscape plan for stone pillars at Kishwaukee Street entrance. Proactively work with state/local agencies to enable funding for Falcon Rd. rehabilitation. Plan to evaluate airport projects to incorporate the efficient placement of all future utility infrastructures.
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Strategic Plan(con't) OBJECTIVES MEASURES TARGETS INITIATIVES
EMPLOYEES
How will we sustain our employees abilities to change and improve
Attract and retain a qualified and workforce.
Performance appraisals Employee turnover
90% of all new hires rate satisfactory or better in the first 6 mos. of employment
Turnover rate at 8% or less annually.
Performance appraisals done annually and quarterly during first year of position.
Promote learning and growth
Professional development and or training opportunities and participation.
Hours of training or professional development
Identify organizational wide training priorities to improve job skills and knowledge. Create and implement training/ professional development program.
Implement initiatives for succession planning
Development of written succession plan
Creation, implementation and measurement of plan within 36 months.
Assessment of current and future workforce needs – 3 – 6 months, Create plan and business case for succession plan 6‐12 months, Approved resources in budget to support leadership program. – 12 months, Define processes, training and development program 12 ‐ 18 months, Communicate, execute and measure plan results for first year 18 – 36 months.
Financial Policies The Authority’s long‐range goal is growth with balanced self‐sufficiency, efficient debt use, and the means to these goals are sound fundamental financial policies. The financial policies that lay the groundwork for the budget are as follows: Basis of Accounting The annual financial statements of the Authority are prepared on the accrual basis of accounting, whereby revenues and expenses are recognized in the period earned or incurred. All transactions are accounted for in a single enterprise fund. Pursuant to GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Government Entities that Use Proprietary Fund Accounting, the Authority follows GASB guidance as applicable to proprietary funds and FASB Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins issued on or before November 30, 1989 that do not conflict with or contradict GASB pronouncements. Budgetary Data The Authority budget is prepared on an accrual basis with the exception for the following: Principal payments on long‐term debt are applied to the outstanding liability on a GAAP basis, as
opposed to being expensed on a budget basis. Capital outlays are recorded as assets on a GAAP basis and fully expended for budgetary
purposes.
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Financial Policies(con’t) The budget process begins each October. Authority management has long recognized the importance of proper and accurate budgeting. Management annually creates a comprehensive line item budget that is adopted by the Board of Commissioners in a public meeting before the beginning of each fiscal year. The budget narratives are detailed projections of the expected financial operation over the next year in accordance with the Authority’s long‐range financial plans. The budget is created using zero‐based budgeting techniques where staff are required to estimate all revenues and expenditures as though each revenue and/or expenditure was being initiated for the first time. Management’s control of the budget is maintained at the department level. It is the responsibility of each department to administer its operations in such a manner as to ensure that the use of funds is consistent with the goals and programs authorized by the Board of Commissioners. The Authority’s definition of a balanced budget is one in which revenues and other resources equal or exceed expenditures and other uses. A balanced budget is an integral part of maintaining the Authority’s financial integrity. Strategies employed to attain this balance include cost reductions, personnel and service efficiencies, and increasing fees to match related expenses. Operating Revenues and Expenses The Authority distinguishes operating revenues and expenses from non‐operating items. Operating revenues and expenses generally result from providing services in connection with the Authority’s operations. The principal operating revenues of the Authority are airport fees (primarily landing fees and fuel flowage fees) and lease revenue. The Authority also recognizes certain other revenues as operating revenues, including airport service fees, storm water retention fees, fuel permits, quarry fees, etc. Operating expenses for the Authority include personnel and benefit costs, contractual services costs, commodities and others. All revenues and expenses not meeting this definition are reported as non‐operating revenues and expenses. Cash, Cash Equivalents and Investments The Authority considers all highly liquid investments (including short‐term investments) with maturity of three months or less when purchased to be cash equivalents. Investments are stated at fair value. Fair value is determined based primarily on the basis of quoted market prices. Interest income is recorded as earned. Custodial Credit Risk – Deposits: Custodial credit risk is the risk that in the event of bank failure, the Authority’s deposits may not be returned to it. The Authority has a policy regarding custodial credit risk which requires that funds on deposit in excess of FDIC or FSLIC limits be secured by either securities guaranteed by the full faith and credit of the United States of America or obligations of the United States of America or its agencies. The Authority’s policy also requires that the amount of collateral provided shall not be less than 105 percent of the fair market value of the funds secured. Pledged collateral shall be held by the Authority or in safekeeping, evidenced by a safekeeping agreement. Collateral in safekeeping must be held by a third party or by an escrow agent of the pledging institution.
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Financial Policies(con’t) Credit Risk: The Authority may invest in public funds in certain types of security as allowed by the Public Funds Investment Act, 30 ILCS 235 et seg. “Public Funds” are defined as current operating funds, special funds, interest and sinking funds, and funds of any kind belonging to or in custody of the Authority. While the Public Funds Investment Act allows the investment of public funds in a wider range of possible securities, it is the policy of the Authority that investments be limited to the allowed securities as identified hereof. Allowable securities are as follows:
Bonds, notes, certificates of indebtedness, treasury bills, or other securities, which are guaranteed by the full faith and credit of the United States of America.
Bonds, notes, debentures, or other similar obligations of the United States of America or its agencies.
Any interest bearing account, deposit (including certificates of deposit), or any other investment constituting direct obligations of any bank, collateralized per the investment policy, and as defined by the Illinois Banking Act and only those insured by the Federal Deposit Insurance Corporation (FDIC).
Any repurchase agreement not to exceed 330 days as provided for in 30 ILCS 235/2 (h) so long as such repurchase agreements comply with said statute and are supported by the full faith and credit of the United States of America.
Custodial Credit Risk – Investments: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Authority will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Authority’s investment policy addresses custodial credit risk, as applicable, as detailed under Custodial Credit Risk – Deposits. Concentration of Credit Risk – Investments: Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The Authority’s investment policy allows for no more than 40 percent of the total investment portfolio, exclusive of U.S. Treasury securities held in safekeeping to be held at one financial institution. Accounts Receivable Accounts receivable includes amounts due from Authority tenants as well as amounts due from the federal and state governments for grants. The amount shown is reduced by an estimated reserve for uncollectible accounts. Taxes Receivable Taxes receivable include taxes levied in the current fiscal year that will be paid in the following fiscal year. The balance, net of a one percent allowance for uncollectible amounts, is fully deferred at year‐end because the tax levy will be used to fund expenses of the following year.
15
Financial Policies(con’t) Designated Assets Designated assets include all deposits and receivables either legally restricted or Board designated for specified purposes. Designated assets are segregated, by purpose, as follows: Debt service – These assets are used to fund current maturities for the outstanding bond
payments. Capital projects – These assets are used to fund budgeted capital items with the exception of debt
service. Stormwater retention and landfill closure – These assets are restricted for the repair,
maintenance and monitoring of the stormwater retention pond and for the estimated landfill closure costs.
When expenses are incurred for which both designated and unrestricted resources are available, it is the Authority’s policy to first apply designated resources. The Authority understands the need to replace capital items. In order to minimize the impact of future capital expenses, staff has planned for capital replacements with the use of designated assets and they are funded by annual deposits from excess funds available. Capital Assets An accounting and inventory of all capital assets is maintained to ensure proper accounting control resulting in accurate financial reports. All individual items with a cost in excess of $2,000 that provide more than one year of economic benefit are capitalized. Depreciation is calculated by the straight‐line method using the assets useful life that is classified as follows: Years Buildings 20 Infrastructure 20 Machinery, equipment & vehicles 5 – 10 Furniture & fixtures 3 – 5 Routine maintenance and repairs are expensed as incurred. Significant betterment and improvements are capitalized and depreciated over their estimated useful lives. Interest incurred during the construction phase of capital assets is reflected in the capitalized value of the assets constructed, net of interest earned on the invested proceeds over the same period. Deferred Charges and Unamortized Premium on Bonds All costs associated with the issuance of bonds and other long‐term debts are capitalized. Amortization is calculated by the straight‐line half‐year (bonds outstanding) method over the term of the debt. Bond premiums are amortized in the same manner. This method does not differ significantly from the effective interest method. Deferred charges also include UPS organizational costs and engineering costs which are being amortized using the straight‐line half‐year method. Compensated Absences The Authority accrues vacation and sick pay benefits as earned by its employees.
16
Financial Policies(con’t) Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Net Assets The Authority classifies its net assets in three categories as follows: Invested in capital assets, net of related debt consists of capital assets, net of accumulated
depreciation and reduced by outstanding balances for bonds and other debt that are attributable to the acquisition, construction or improvement of those assets.
Restricted net assets result when constraints placed on assets used are either externally imposed by creditors, grantors, and the like, or imposed by law through constitutional provisions or enabling legislation. The Authority has no restricted net assets.
Unrestricted net assets consist of all other net assets that do not meet the criteria above. Operating Reserves The Authority maintains operating reserve funds to protect against the need to reduce service levels, staff, or raise fees due to temporary revenue shortfalls or unprecedented one time expenditures. A reserve was established as a target minimum level to be maintained for exposure to natural disaster, severe unforeseen emergencies and economic uncertainties. The reserve policy will mitigate any future revenue fluctuations, where the revenues generated are interrupted or otherwise insufficient to offset the operating expenditure. To ensure sound fiscal management, preserve Authority Board discretion in its resource allocation decisions, and minimize the impact to the community and airport users the Authority establishes the following operating reserve funding targets:
Build a 3‐5 month reserve of the annual operating and non‐operating expenses using a three‐year trend to project the actual amount.
Transfer all types of revenue exceeding expenses, after the payment of debt service and on‐going capital project costs, into the reserve account until the target is met.
Maintain reserves in approved investments accounts that allow for projected needs of reserves as well as the ability to earn interest income where appropriate.
The recommended target amounts are based on recommendation from rating agencies and established best practices utilized by other municipalities. Legal Debt Margin Pursuant to the Airport Authorities Act, the Authority is given the right to issue tax secured bonds without the approval of voters within its boundaries for construction and development of an airport, provided that: The total of the bonds previously issued or to be issued does not exceed three‐quarters percent
(0.75%) of the total assessed valuation of all taxable properties within the Authority’s boundaries, and
17
Financial Policies(con’t) The plans and specifications are submitted to the State of Illinois Department of Transportation,
Division of Aeronautics for approval. The Authority may issue additional bonds; however, voter approval is required. The total amount of the bonds may not exceed two and three tenths percent (2.3%) of the total assessed valuation. The 2.3% debt limit is calculated as of the time of issuance of the bonds and includes all Authority indebtedness. The Authority is also subject to a 2.875% debt limitation with respect to all outstanding indebtedness. This limit is calculated as of the date of issuance of any debt, except tax anticipation notes, tax anticipation warrants and revenue bonds. Tax Rate The current tax rate for the Authority is budgeted at $.0945 per $100 of assessed value. Risk Financing The Authority purchases commercial insurance coverage for the various risks the Authority may encounter in its operations. Such risks of loss relate to torts; theft of, damage to and destruction of assets; errors and omissions; and worker’s compensation. The Authority established a partial self‐insurance program beginning January 1, 2008 to cover the risks of health claims and has retained the services of an outside agency to administer its self‐insurance claims. The Authority does not assume unlimited liability for health claims as it maintains stop‐loss coverage, which covers medical expenses when they are incurred for amounts in excess of $3,500 annually for each participant. Rates & Charges The Authority periodically approves a Rates & Charges Policy by resolution. The charges incorporated therein are determined by examining costs associated with the revenue stream. Rates & Charges are reviewed and amended periodically and are included in Exhibit 2. Rates and Charges are based on a combination of both residual and compensatory methods. Internal Controls The Authority’s internal control structure is an important and integral part of its entire accounting system. The current structure in place is designed to provide reasonable, but not absolute assurance that: (1) assets are safeguarded against loss from unauthorized use or disposition; (2) transactions are executed in accordance with management’s authorization; (3) financial records are reliable for preparing financial statements and maintaining accountability for assets; (4) there is compliance with applicable laws and regulations; and (5) there is effectiveness and efficiency of operations. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits that are likely to be derived from them, and that the evaluation of cost and benefits requires estimates and judgment by management.
18
Financial Policies(con’t) We believe that the Authority’s internal control framework adequately safeguards assets and provides reasonable assurance and proper recording of financial transactions.
One duty of the Finance Manager is to perform internal and external auditing functions. In the course of this assignment, the Finance Manager is authorized to have full, free and unrestricted access to all records relating to the audit. Budget Document Budgeting serves as an important management tool to plan, control and evaluate the operations of the Authority. The budget has been prepared in accordance with the standards set forth by the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award Program to fully disclose the financial operations of the Authority. Upon successful review and approval, this budget will be submitted to the GFOA for their consideration of this prestigious award. The Authority used zero‐based budgeting (ZBB) techniques, which required staff to provide justification and support for all expenditures. This allows for evaluation of expenditures to ensure that each item supports and contributes to the goals of the organization. ZBB results in a more meaningful document that has the support of staff for implementation and utilization. This budget is divided into six components: transmittal letter, revenue budget, operating expenses budget, non‐operating budget, capital budget, and exhibit section. The operating expense budget is further broken down into departmental budgets. Budget Process Budget Adoption. The Authority’s budget is adopted by ordinance to comply with the provisions of State of Illinois Statute 50 ILCS 330/3, which requires a governing body to approve a budget within or before the first quarter of the fiscal year. In accordance with that same statute, the budget serves as the annual appropriations ordinance. The budget is prepared on a cash basis, whereby all revenues and expenses are recognized in the period in which cash is received and/or paid. Budget Calendar. State law requires a tentative budget and appropriation ordinance be made conveniently available for public inspection at least thirty (30) days prior to final action thereon. Further, at least one (1) public hearing must be held prior to budget adoption and notice of this public hearing must be published in a newspaper at least thirty (30) days prior to the time of such hearing. The tentative schedule for this process was as follows: 27 March 2014 Approve Tentative Budget and Appropriation Ordinance (Exhibit 1)
10 April 2014 Public Hearing Notice published in newspaper
22 May 2014 Public Hearing
22 May 2014 Approve Adoption of Budget and Appropriation Ordinance (Exhibit 5)
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Budget Process(con’t) In the fall prior to the end of the fiscal year department heads begin creating draft budgets and capital recommendations and then submit the recommendations to the Finance Department for review in December. The draft budgets are reviewed with each department head and the Director and then coordinated against the available resources and any edits or modifications are done to align the goals and plans for the coming year. With staff recommendation, the budget is finalized and presented to the Board of Commissioners for review. In anticipation of the fiscal year beginning May 1, typically the public hearing is held and the budget is approved in April; however, due to significant events very near the fiscal year end, it was necessary to extend the budgeting process, public hearing and final adoption. Budget Amendment. The Budget is amended only upon the occurrence of an extraordinary event, as deemed by the Executive Director, with concurrence by a majority of the Board of Commissioners and then only if funds are available. Budget Monitoring. The independent monitoring of the budget continues throughout the fiscal year for management control purposes. Monthly financial statements comparing to budget are presented to all Senior Staff and Board Members for review. A Planning and Finance Committee comprised of the same meets monthly to discuss and review any significant items or changes. Distinguished Budget Presentation Award The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Greater Rockford Airport Authority for its annual budget for the fiscal year beginning May 1, 2013. This was the thirteen in as many years that the Authority has been awarded this prestigious award. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year. It is believed the current budget continues to conform to program requirements; therefore, it will be submitted to GFOA to determine its eligibility for award. Following is a copy of the award.
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Distinguished Budget Presentation Award(con’t)
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Revenues Two types of revenues are budgeted, operating and non‐operating. Operating revenue is derived from the day‐to‐day operations of the airport and includes landing fees, fuel flowage fees, hangar leases, land leases, building leases, airport service fees, AirFest revenues, operating grants, and FTZ fees. Non‐operating revenue is a consequence of operating the airport; e.g., tax levy and interest income. The airport services fee includes fees charged for services performed by our staff, which includes, badging, training, escorts, snow removal, deicing chemical application, international rubbish removal, fuel permitting and any other maintenance fees. Shown below are the historical annual operating revenues. There was a positive trend through FYE08, mostly attributable growth in both cargo and passenger activity and the return of AirFest in FYE06. The subsequent decline in operating revenues is related to the decline in cargo activity which has seen a 45% drop from the loss of two smaller cargo operations and a decrease from UPS. The sharp drop in 2014 is the result of the one year hiatus of airshow which has returned this year. The Authority has worked to diversify the revenue sources and work to grow the leasable opportunities at the airport.
Staff concentrates its efforts to increase the amount of fixed revenue over variable revenue as a high percentage of variable revenue could be financially catastrophic in an airport economic downturn. Lease revenue and other revenue (fixed revenue) will serve as a hedge in possible future economic downturns. As shown on the following page growth in airport fees is associated with the increased rates for landing fees and additional activity for diversions and charters. Staff continues efforts to investigate new opportunities for additional leased revenues.
$‐
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2006
2007
2008
2009
2010
2011
2012
2013
2014
BUD 2015
Thousands
Operating Revenue History
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Revenues (con’t)
Non‐operating revenues consist predominantly of the property tax levy, but also include replacement taxes and interest income collected on Authority deposits. Property taxes are levied to cover certain operating expenses. The total levy is approximately $.1034 per $100 of assessed valuation and the projected decrease is the result of assessed valuation reductions. Replacement taxes are projected to increase based on State of Illinois estimates. Airport Improvement Grant (AIP) funds and passenger facility charges are now considered non‐operating revenues where in the past they were categorized as contributions. Passenger facility charges project an increase based on enplanement growth for the next year. Expenditures Expenditures are also categorized between operating and non‐operating. Operating expenditures are those expenditures that are incurred as a result of the direct operation of the airport, and are further broken down by operating departments; Finance and Administration, Operations and Facilities, Air Service Marketing, Terminal Services and AirFest. Non‐operating expenditures are expenditures for debt service interest. Following are the historical annual operating expenses. The fluctuations from year to year are mainly due to our service activity for new routes, the decreases in 2014 and planned for 2015 are due to a one year hiatus from airshow and in 2015 the change in ARFF providers. Projections for the next three to five years show a moderate increase in the operating expenses as a result of growth in passenger service.
Airport Fees45%
Lease Revenues
39%
Airport Service Fees6%
Other10%
FYE2014 Revenue by Type
Airport Fees40%
Lease Revenues
35%
AirFest Revenues
11%
Airport Service Fees5%
Other9%
FYE2015 Budget by Type
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Expenditures(con’t)
Operating expenses are categorized into four areas, personnel service, contractual service, commodities, and other. Below is a chart showing the breakdown of costs by category.
Personnel Services
45%
Contractual Services
36%
Commodities14%
Other4%
Expenses by Category
$‐
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,0002006
2007
2008
2009
2010
2011
2012
2013
2014
BUD 2015
Thousands
Operating Expenses History
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Expenditures(con’t) Personnel Services accounts for 45% of operating expenses and is traditionally one of the largest cost for the Authority. The Authoriy views the employees as its most important asset and works to hire the best most highly qualified and motivated people. Contractual services is 36% of the total operating expenses and includes all contracted services and utilities. Commodities make up only 14% of total expenses which is down from the prior year. The Other category of 4% is for those costs not included in the other sections and include the glycol retention treatment facility, landfill and environmental costs. Non‐operating expenditures consist predominantly of interest expense for debt. There has been a increase from the prior year due to the addition of an interest expense on a capital lease for 2 new runway brooms. Debt Service The primary objective of debt management is to keep the level of indebtedness within the available resources, and comply with the legal debt limitations as established by the Airport Authorities Act. The Authority’s outstanding debt is $3.5 million in revenue bonds. The Authority has pledged the Airport Improvement Program (AIP) Federal Grant money it expects to receive in the future as a government revenue source to repay the general obligation alternate revenue bonds issued December 2008. Proceeds from the bonds provided financing to implement certain improvements to the Airport through construction of the Northwest Air Cargo Apron and Access Taxiway. During 2014 the Authority entered into a capital lease agreement for two high speed runway brooms for a total of $1.2 million. The lease is for seven years with a $1 buy at the end of the term. The Authority manages debt with the goal of only incurring debt where it economically has a benefit and the following table shows the history and future of the outstanding debt. The following schedule incorporates both principle and interest payments for the existing and planned debt uses for the year. As noted below there are no plans to acquire additional debt at this time.
$0
$1
$2
$3
$4
$5
FYE14 FYE15 FYE16 FYE17 FYE18 FYE19 FYE20 FYE21 FYE22
Millions
Debt Schedule
Revenue Bonds Interest Expense Capital lease
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Debt Service(con’t) The last rating for the Authority was in October 2003. Moody’s upgraded the Authority bond rating to A1 from A2. The rating upgrade reflects the Authority eliminating bank loan debt, a moderate amount of rapidly retired bonded debt, resumption of a small amount of passenger service and the Authority’s stable and consistently well‐managed financial operations. As a result of the improved rating, the Authority was able to issue previous bonds with a lower interest rate, thereby, reducing the amount of future interest expense the Authority incurred. The plan is to continue to maintain a balance sheet that will allow for favorable rating in the future when necessary to issue ratable debt.
The legal debt margins as of April 30, 2014 are summarized as follows which shows the Authority is within the legal debt margin.
Without With Total
Voter Approval Voter Approval Debt Limitation
Assessed va luation at Apri l 30, 2014 2,806,901,362$ 2,806,901,362$ 2,806,901,362$
Debt l imi t percentages 0.75 % 2.3 % 2.875 %
21,051,760 64,558,731 80,698,414
Tota l debt appl i cable to debt l imi t ‐ 4,915,050 4,915,050
Tota l ‐ 4,915,050 4,915,050
FYE14 Lega l debt margins 21,051,760$ 59,643,681$ 75,783,364$
Capital Improvement Program The Capital Improvement Program (CIP) is a five to ten year program that provides for critical improvements and asset preservation. The program includes projects that address federal security requirements, airfield safety, enhanced revenue potential, rolling equipment replacement, asset preservation and completion of the newly updated Master Plan. Funding sources for the projects and replacements include Airport Improvement Program (AIP) grants, Passenger Facility Charges (PFC), allocated reserve funds, the balance of the capital accounts, operating revenues and short term borrowings where appropriate. The current year budget does not include any short term borrowings. Each year the Authority updates the five year equipment program and the 10 year infrastructure program. The 10 year plan is updated in conjunction with the Transportation Improvement Plan and the Master Plan when updated. Airport Improvement Program (AIP) grants are offered from the Federal Aviation Administration (FAA) to provide funding assistance for eligible capital projects that meet the criteria of the federal program. The Authority meets annually with the FAA and Illinois Department of Transportation to review the 10‐year plan and discuss the upcoming year’s projects as well as any changes or additions to the plan. This is done prior to the FAA giving approval of each fiscal year plan.
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Capital Improvement Program(con’t) Title 49 of the United States Code (USC) authorizes the AIP program. The objectives of this federal program is to assist in development of a nationwide system of public use airports, to ensure the safe and secure operation of the airport and airway system, and to meet the projected needs of the public. The program is funded by aviation use fees, which are collected and deposited into the Airport and Airway Trust Fund that generates the revenues in support of the AIP. The US Congress authorizes expenditures from this dedicated fund on an annual basis each year. The AIP program includes entitlement and discretionary funding. Entitlement funds are awarded to eligible sponsors through a formula based on the number of passengers boarding and cargo aircraft tonnage. Discretionary funds are set aside to provide the FAA the flexibility to fund various high priority programs. It is projected that FYE15 will include approximately $10 million in AIP eligible projects for airfield improvements. The AIP program typically provides funding for 90% to 95% of eligible project costs. The AIP program budget generally will include potential projects if discretionary funding becomes available. If the funding is not available during the year the project will carry forward to the next year. The current year budget includes the Authority’s share of approximately $457,000 of the $10 million in projects. Passenger Facility Charges (PFC) were initially authorized through the Aviation Safety and Capacity Expansion Act of 1990. The Act allowed public agencies, which manage commercial airports to charge each enplaning passenger a facility charge in accordance with FAA requirements. The PFC is levied on the passenger tickets collected by the airlines, and forwarded to the airport (less a handling fee charged by the airlines). The revenues collected are to preserve or enhance safety, security, and capacity, to reduce noise or to enhance competition. In October 1992, the Authority received approval from the Federal Aviation Administration (FAA) to impose a PFC of $3.00 per enplaned passenger. In April of 2007 the FAA approved the Authority’s request to increase the PFC level to $4.50 on all remaining reimbursements. The new collection rate commenced on June 1, 2007. The total approved collectible amount is $7,476,945 and the Authority has collected PFC’s, including interest earned totaling $5,151,610. Projected FYE15 CIP capital expenditures are as follows and a specific list of the projects are outlined in the Capital Improvement section of the booklet.
Airside Projects $527,000
Landside Projects 713,000
Terminal Projects 534,000
Administration Projects 175,000
Maintenance Projects 416,980
Operations Projects 80,000
Total Capital Improvements $2,445,980
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Net Assets Following is a summary of changes in net assets. The information is presented on a GAAP full accrual basis. The summary of net assets does account for these items and cannot be tied to other balances in this document. Income or loss before capital contributions is the net income or loss from the statement of revenue and expenses. Capital contributions are from Federal, State and grant programs for non‐cash transfer of assets. The budget includes the net operating expense and net non‐operating revenue which will combine with the depreciation for the year to make up the balance of the projected income before Capital Contributions.
FYE10 FYE11 FYE12 FYE13 FYE14 BFYE15
Net Pos i tion, Beginning of Year $108,373,005 $110,130,946 $111,001,882 $108,872,396 $111,686,653 $105,286,908
Income(loss ) before Capi ta l Contributions (5,709,600) (6,855,250) (8,469,562) (9,783,239) (9,396,356) (7,459,524)
Capi ta l Contributions 7,467,541 7,726,186 6,340,076 12,597,496 2,996,611 10,000,000
Net Pos i tion, End of Year $110,130,946 $111,001,882 $108,872,396 $111,686,653 $105,286,908 $107,827,384
Summary of Changes in Net Position
Designated Assets The Authority’s intent is to become a self‐supporting entity and, therefore, is accounted for as a proprietary fund. In a proprietary fund, the Authority accounts for its financial transactions similar to that of a private business enterprise. As a result the Authority has set up multiple bank accounts and investments for the four different types of sources and uses: operating, debt service, capital and trust funds for future expenditures. All expenses are paid with the appropriate resources. Since some capital expenditures have no funding source, other than those funded by FAA sources, it is necessary to transfer excess net operating proceeds from the Operating Account to these other accounts. This is generally done at year‐end when the amount of excess funds is known. All excess funds earned in the current year will fund the Capital Fund for the next year. Operating account. The operating account is unrestricted and predominantly all operating monies (operating revenue and operating tax levy) are received and expended from this account (operating fund). Included, but separately identified is an Operating Reserve of approximately $777,000. Debt service account. The debt service account is to support the principal and interest payments for the Alternate Revenue Bond which are then funded from this account. Capital projects account. This fund pays for all capital improvements and capital programs unless accounted for specifically through a trust fund. Funding for this account is derived from Passenger Facility Charges (PFCs), excess operating monies from the previous year and AIP funds reimbursement. A portion of the AIP funds reimbursement planned for BFYE of $624,250 is also included in this account. Trust fund account. Trust funds were established to fund future expenditures for the following purposes:
Landfill closure fund, Glycol retention/treatment facility fund, Equipment replacement fund, and Building re‐roof fund.
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Designated Assets(con’t) The landfill closure fund is estimated to be at approximately $1,144,101. The balance appears reasonable based on the environmental engineers review. There will be no contributions to the fund during the year. The glycol retention/treatment facility fund is for future repairs and upgrades to this facility. This facility purifies the wastewater that is collected from de‐iced aircraft. The glycol treatment fund has a balance of $1,423,894 and is funded by the interest earned. The maximum balance for this fund caps out at $1.5 million. The equipment sinking/replacement fund is for airport equipment purchases of larger equipment such as snow removal vehicles or fire trucks in the future. Presently, the fund balance is $2,466,029 and there are no plans in the current year to make a contribution other than interest earned on the existing funds. The expectation is the contributions will resume once revenues begin a steady growth. Typically this is funded by the receipts of auctioned equipment, investment earnings and a budgeted sinking fund transfer. A building re‐roof fund to fund an extensive re‐roof of the Coleman Hangar has a balance of $198,392. This balance appears adequate to fund the re‐roof in the future. The Authority views this as an effective way to manage large capital purchases. A summary of the beginning balances, sources, uses, and ending balances for the segregated accounts are following.
Operating
Account
Debt Service
Account
Capital Proj.
AccountTrust Account Total
Balance, 1 May 2014 889,501$ 7,820$ 4,725$ 5,232,416$ 6,134,462$
Sources
Operating revenue 5,532,049 5,532,049
Non‐operating revenue 622,222 622,222
Tax levy‐operating 3,102,000 3,102,000
Equipment Trust Funds ‐ ‐
Debt issue 400,000 400,000
PFC 559,926 559,926
AIP Fund Reimbursement 325,750 624,250 950,000
Other 75,000 75,000
Total Sources 9,256,271 325,750 1,584,176 75,000 11,241,197
Uses
Operating expenses 8,403,877 8,403,877
Non‐operating expenses 72,000 72,000
Debt service payments 253,750 253,750
Capital expenditures 2,445,980 2,445,980
Total Uses 8,403,877 325,750 2,445,980 ‐ 11,175,607
Net Sources (Uses) 852,394 ‐ (861,804) 75,000 65,589
Balance FYE12 before transfers 1,741,894 7,820 (857,079) 5,307,416 6,200,052
Transfers (900,000) ‐ 900,000 ‐ ‐ Balance, 1 May 2015 841,894$ 7,820$ 42,921$ 5,307,416$ 6,200,052$
Operating account balances include approximately $777,000 of operating reserves in ending balance.
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Acknowledgement Without the leadership and the commitment of the Authority’s management team and Board, the budget would not be as comprehensive of a document. The entire organization is acknowledged for their efforts in preparation of this document. The time and effort by all Deputy Directors, Managers and Support Staff is greatly appreciated. The end result of this process will be increased ownership for a dynamic and evolving document. Sincerely,
Amy M. Ott, AAE, CPA Deputy Director
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Budget Summary The budget presented has many highlights discussed in subsequent sections. Operating revenues is budgeted at $5,532,049 for FYE15, is a increase from the prior year budget mainly related to the airshow being added back this year. The decrease in the operating expenses is related to the same. Operating expenses are budgeted at $8,403,877 which is a 2.6% decrease compared to the prior year budgets.
FYE12 FYE13 BFYE14 Est. FYE14 BFYE15
Operating Revenue
Airport fees‐airside 1,967,889$ 1,884,418$ 2,008,395$ 1,906,774$ 2,010,075$
Airport fees‐landside ‐ rental car commissions 182,268 190,993 220,000 199,000 210,000
Lease revenue‐on airport 1,093,736 1,096,151 1,272,549 1,215,849 1,328,330
Lease revenue‐off airport 498,751 517,395 537,242 561,996 620,489
Airfest revenue 495,962 559,418 ‐ ‐ 605,000
Airport service fees 262,580 231,593 258,750 235,768 254,750
Other 452,140 426,740 445,655 432,837 503,405
Total Operating Revenue 4,953,326 4,906,708 4,742,591 4,552,224 5,532,049
Operating Expense
Personnel services (3,606,203) (3,829,977) (3,741,032) (3,972,556) (3,819,660)
Contractual services (4,349,187) (3,780,313) (2,958,075) (2,873,657) (3,005,860)
Commodities (935,767) (1,196,301) (1,198,987) (1,069,451) (1,286,917)
Other (502,226) 13,424 (286,440) (335,597) (291,440)
Total Operating Expense (9,393,382) (8,793,166) (8,184,534) (8,251,261) (8,403,877)
Net Operating Expense (4,440,056) (3,886,458) (3,441,942) (3,699,037) (2,871,828)
Non‐operating Revenue (Expense)
Interest income 33,880 19,318 25,000 16,183 20,000
Property tax levy‐operating 3,346,076 3,122,854 3,140,452 3,123,289 3,102,000
Replacement tax 525,140 520,646 523,449 595,828 602,222
AIP reimbursement funds 4,565,843 1,636,679 950,000 950,000 950,000
Passenger facil ity charges 522,905 474,257 511,991 526,343 559,926
Funds from auctioned equipment ‐ 2,937 100,000 20,980 75,000
Other credits (145,279) (325,000) ‐ ‐ ‐
Interest expense (144,047) (60,643) (68,000) (67,670) (72,000)
Total Non‐operating Revenue (Expense) 8,704,519 5,391,048 5,182,892 5,164,953 5,237,148
Debt Service, Sinking Fund Deposits & Other Uses
Debt service principal payments (266,900) (266,900) (233,750) (233,750) (253,750)
Debt Service ‐ ‐ ‐ ‐ 400,000
Sinking fund deposits/uses ‐ ‐ 13,500 ‐ 10,000
Total Debt Service and Sinking Fund Deposits (266,900) (266,900) (220,250) (233,750) 156,250
Net before Capital 3,997,562 1,237,689 1,520,700 1,232,166 2,521,569
Capital Improvement Program
Airside projects (6,560,030) (279,300) (279,300) (433,451) (527,000)
Landside projects (53,335) ‐ ‐ ‐ (713,000)
Terminal projects (111,806) (689,900) (689,900) (483,886) (534,000)
Administration projects (6,520) ‐ ‐ (96,075) (175,000)
Maintenance projects (224,864) (498,500) (498,500) (364,964) (416,980)
Operations projects (31,790) (45,000) (45,000) 47,247 (80,000)
Total Capital Improvements (6,988,345) (1,512,700) (1,512,700) (1,331,129) (2,445,980)
Excess Funds (2,990,783)$ (275,011)$ 8,000$ (98,963)$ 75,589$
31
Operating Revenue Summary Revenue sources are grouped into five distinct categories: airport fees, lease revenues, airport service fees, AirFest revenues and other and is further broken down within each category. This breakdown allows a comparison of variable revenues (airport fees and AirFest) vs. fixed revenues (lease revenue).
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2010 2011 2012 2013 2014 BUD 2015
Thousands
Airport Fees Lease Revenues AirFest Revenues Airport Service Fees Other
Airport fees – airside, $2,010,075. Airport fees – airside revenue is comprised of landing fees, ramp fees, and fuel flowage fees. These fees are generated on the runways, taxiways, aprons, and in areas of the terminal. They are variable in nature and dependent upon an aircraft landed weight, number of aircraft seats or gallons of fuel pumped. Fuel flowage fees were calculated using the prior year estimated fueling and economic indicators. Most fuel flowage is from the general aviation and small commercial operations and has budgeted similar activity as the prior year. Landing fees for cargo are projected based on 840 million pounds, which is slightly less than last year’s estimates. Based on discussions with the cargo operators and other economic indicators there is minimal growth planned for FYE15. Landing fees for passenger airlines are projected to increase as a result of diversion activity. Included are estimates for landing fees related to diversions and charters. RFD is a major diversion airport for airlines flying to O’Hare, Midway and Milwaukee. Ramp fees are related to usage by airlines from the Jetway to the terminal. The Authority has a common use terminal. All users pay one fee for use of jetway, baggage claims, and counter space. All gates and counter space in the terminal are common use. Airport fees – landside, $210,000. The revenue in this category is rental car commissions. As in the previous category, these revenues are also variable in nature. Revenues are expected to decrease slightly from the FYE14 projected year end amounts as a result of decreased activity from a rental car operation in the area.
32
Operating Revenue Summary(con’t) Lease revenue – on airport, $1,328,330. Lease revenue is fixed over time and includes building, terminal, concessions/counters/office and land. These sources of revenue are not dependent upon an independent variable (except for time), and are recurring from year‐to‐year, with the exception of rental increases. Because of their nature, these revenues are easily and more accurately budgeted than variable revenues. The revenues in this category are all on the airport or within the perimeter fence. Lease revenues in both areas are projected to increase as a result of new lease opportunities. Lease revenue – off airport, $620,489. Sources of revenue include building and land leases. These sources are also fixed and do not vary much over time and are outside the perimeter fence and are largely considered an industrial park. Lease revenue–off airport is planned to increase based on potential new leasing opportunity. AirFest revenue, $605,000. AirFest revenues are all the dollars associated with the annual airshow. This will be the ninth show since the return of the event. With the history and experience the budget amount appears to be a reasonable estimate based on a two day show with an approximate attendance of 75,000. Airport service fees, $254,750. Airport service fees include badging, training, escorting, snow removal, international rubbish removal, deicing chemical application and any other services provided. The amount budgeted is based on estimated activity levels for badging and international rubbish. The snow and deicing fees are based on our regional averages. Other – $503,405. Other revenue sources include commercial operating agreement fees, quarry fees, foreign trade zone fees, and other miscellaneous income. Most of these revenues are incidental to the operation. Increase is related to expansion at quarry and growth of FTZ fees.
33
Operating Revenues BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET
FYE10 FYE11 FYE12 FYE13 FYE14 FYE14 FYE15
AIRPORT FEES‐AIRSIDE4120 Fuel flowage fees 152,393$ 171,105$ 81,605$ 63,652$ 78,000$ 48,000$ 58,000$ 4140 Landing fees ‐ cargo 1,726,052 1,630,620 1,622,670 1,485,763 1,612,863 1,558,644 1,605,863 4141 Landing fees ‐ non cargo 240,193 250,817 206,703 220,257 225,162 211,822 269,481 4142 Landings ‐ terminal fees 76,633 88,606 56,911 114,746 92,370 88,308 76,731
TOTAL FEES‐AIRSIDE 2,195,271 2,141,149 1,967,889 1,884,418 2,008,395 1,906,774 2,010,075
AIRPORT FEES‐LANDSIDE
4270 Rent‐a‐car commissions 128,145 166,014 182,268 190,993 220,000 199,000 210,000 TOTAL FEES‐LANDSIDE 128,145 166,014 182,268 190,993 220,000 199,000 210,000
LEASE REVENUE‐ON AIRPORT
4330 Building 595,061 512,448 590,802 652,011 811,571 774,906 888,797 4360 Land 442,006 496,146 418,860 372,926 350,891 346,605 350,412 4361 Parking/ramp 2,450 7,818 8,323 12,858 50,000 28,018 32,000 4380 Terminal concession/counter/offices 44,352 49,185 75,751 58,355 60,087 66,320 57,121
TOTAL LEASE‐ON AIRPORT 1,083,870 1,065,598 1,093,736 1,096,151 1,272,549 1,215,849 1,328,330
LEASE REVENUE‐OFF AIRPORT
4430 Building 145,570 163,545 156,095 153,572 143,419 155,374 165,850 4460 Land 318,356 329,260 342,657 363,823 393,823 406,621 454,639
TOTAL LEASE‐OFF AIRPORT 463,926 492,805 498,751 517,395 537,242 561,996 620,489
AIRFEST REVENUE
4915 Air Show‐ Concessions 229,518 199,821 113,630 173,620 ‐ ‐ 110,000 4916 Air Show ‐ Sponsors 116,475 151,142 157,142 116,455 ‐ ‐ 175,000 4917 Air Show ‐ Special Promotions 28,436 26,890 21,325 19,355 ‐ ‐ 95,000 4918 Air Show ‐ Marketing 25,841 27,642 17,427 13,477 ‐ ‐ 10,000 4919 Air Show ‐ Show Tickets 267,799 208,087 186,439 236,511 ‐ ‐ 215,000
TOTAL AIRFEST REVENUE 668,069 613,582 495,962 559,418 ‐ ‐ 605,000
AIRPORT SERVICE FEES
4950 Fuel permits 4,200 4,200 4,200 3,150 3,750 3,375 3,750 4955 Late fees ‐ ‐ ‐ ‐ 1,000 ‐ 1,000 4970 Snow removal/maintenance fees 1,420 7,645 2,785 750 12,000 2,891 12,000 4971 International rubbish disposal fee 110,120 89,270 40,285 50,000 24,100 50,000 4972 Deicing chemical application fee 80,778 138,628 160,934 160,000 187,592 160,000 4975 Other airfield service fees 384,830 31,667 27,698 26,474 32,000 17,810 28,000
TOTAL AIRPORT SERVICE FEES 390,450 234,410 262,580 231,593 258,750 235,768 254,750
OTHER
4930 Commercial operating agreement 76,239 75,185 76,225 73,045 75,105 68,805 75,105 4940 Foreign trade zone fees 71,042 72,500 70,000 74,500 82,250 100,932 120,000 4960 Quarry fees 90,000 90,000 90,000 90,000 90,000 90,000 110,000 4980 Stormwater fees 150,000 150,000 150,000 150,000 150,000 150,000 150,000 4985 Other agency grants 220,400 61,201 17,791 ‐ ‐ ‐ ‐ 4990 Miscellaneous 48,472 78,078 48,124 39,195 48,300 23,100 48,300
TOTAL OTHER 697,015 526,964 452,140 426,740 445,655 432,837 503,405 TOTAL OPERATING REVENUE 5,626,745$ 5,240,521$ 4,953,326$ 4,906,708$ 4,742,591$ 4,552,224$ 5,532,049$
CODE/LINE ITEM
34
Operating Revenue Budget Justifications
AIRPORT FEES‐AIRSIDE
4120 Fuel flowage fees 58,000$
4140 Landing fees 1,605,863$
4141 Landing fees ‐ non cargo 269,481$
4142 Landings ‐ ramp fees 76,731$
AIRPORT FEES‐LANDSIDE
4270 Rent‐a‐car commissions
210,000$
LEASE REVENUE‐ON AIRPORT
4330 Building lease‐on airport
T‐hangars, 18 @ $241.65/mo. 52,196
T‐hangars, 3 @ $277.30/mo. 9,972
T‐hangars, 3 @ $325.10/mo. 11,703
T‐hangars, 6 @ $348.45/mo. 25,088
T‐hangars, 2 @ $401.20/mo. 9,628
T‐hangars, 2 @ $466.15/mo. 11,187
Plot #A‐9, Alpine Aviation 11,409
Plot #A‐5, Rock Valley College 36,118
Plot #A‐10, Mechanical Tool & Eng. 28,215
Plot #A‐12, Emery Air Charter 94,150
Plot #A‐14, 49,500
Plot #A‐15, Heritage Aero 41,734
Plot #A‐18, Charles Thomas 18,000
Plot #A‐18, Emery Air Charter 90,000
Plot #A‐20, Pride Aviation 21,915
Plot #A‐21, Hot Shot Express 30,382
International Cargo Facility ‐ Anderson Packaging 341,600
Temporary Leases 6,000
Total building lease‐on airport 888,797$
Buildings and hangars owned by the Authority and located within the airport perimeter fence line are considered on
airport (airside) building leases.
Budgeted automobile rental commissions are calculated on average monthly rental commission.
35
Operating Revenue Budget Justifications
4360 Land lease‐on airport
Plot #A‐1, Aircraft Systems Inc. 10,003
Plot #A‐2, Kaney Aviation 19,820
Plot #A‐3, Courtesy Aircraft, Inc. 18,989
Plot #A‐4, Avionics Place 21,308
Plot #A‐6, Owners Association 14,393
Plot #A‐8, Emery Air Charter 59,605
Plot #A‐11, First Franklin Investment 10,518
Plot #A‐19, HSI Investments, LLC (Pride) 14,712
Plot #A‐23, Emery Air Charter 92,086
Plot #A‐23A, Emery Air Charter 19,611
Plot #A‐27, Superior Plane Aircraft 7,363
Plot #A‐28, HSI Investments, LLC (Pride) 17,344
Plot #A‐29, Kaney Aviation 19,976
Plot #A‐32, Emery Fuel Farm 15,063
Airmen, Inc. ‐ Bldg D 2,674
Airmen, Inc. ‐ Bldg E 3,100
Airmen, Inc. ‐ Bldg F 3,847
Total land lease‐on airport 350,412$
4361 Parking/Ramp Fees 32,000$
4380 Terminal lease‐concession/counter/offices
Automobile rental‐Avis 7,898
Automobile rental‐Hertz 7,873
Automobile rental‐National 8,468
Office/Storage Space ‐ Chicago Aircraft 3,475
Airline Office Space ‐ Allegiant 7,748
Airline Office Space ‐ Frontier 6,250
Food service‐coffee shop 3,000
General Serv.Adm. (FAA/TSA) 12,409
Total terminal lease 57,121$
LEASE REVENUE‐OFF AIRPORT
4430 Building lease‐off airport
Prof Building ‐ UPS Employment 27,267
Ops Bldg ‐ FAA 4,700
Plot #I‐2 6772 Falcon Rd (Pride) 20,522
Emery Air ‐ Bldg 30 5,148
Carlson Farms ‐ Bldg 30 5,225
Plot #I‐30 CWTS 25,701
Plot #I‐15 ‐ CMT 41,519
Kennamental 1,200
Alpha Wrestling ‐ I29 5,500
Metro Enforcement 14,400
Carwash Bay‐ Avis 4,800
Carwash Bay ‐ Enterprise 5,068
Carwash Bay ‐ Hertz 4,800
Total building lease‐off airport 165,850$
Buildings owned by the Authority and located outside the fence line are considered off airport (landside) building leases.
A lease is considered a land lease if the land is leased and the lessee has added an improvement (building).
36
Operating Revenue Budget Justifications
4460 Land lease‐off airport
Farm, 530 acres @ $125/acre; 87 @ $100/acre 74,950
Solar Farm 8,106
Plot #I‐3 ACF Properties (Triplett) 20,571
Plot #I‐4 Mechanical Tool & Engineering 7,329
Plot #I‐5 Mrs. Mary Barker 6,326
Plot #I‐7 Slidematic 4,209
Plot #I‐9 Rock Road Company 96,807
Plot #I‐10 Kennametal, Inc. 3,118
Plot #I‐11 Fitzgerald Equipment Company 14,916
Plot #I‐12 Parkside Warehouse 14,181
Plot #I‐12A Parkside Warehouse 9,449
Plot #I‐13 Barker Rockford Company 35,588
Plot #I‐14 Clinkenbeard 7,876
Plot #I‐16 Airport Pet Lodge 421
Plot #I‐18 Freeway Rockford 7,993
Plot #I‐19 Parkside Warehouse 19,154
Plot #I‐21 Mechanical Tool 3,411
Plot #I‐22 Willett, Hofmann & Associates 8,818
Plot #I‐25 Helm Group (Mechanical) 14,209
Plot #I‐25A Helm Group (Mechanical) 24,078
Plot #I‐26 JS Cad Scan Technologies 5,424
Plot #I‐27 YMA Inc dba Airport Shell 12,098
Plot #I‐28 Comet Fabrication 5,793
Plot #I‐28B Comet Fabrication 8,256
Plot #I‐28C Comet Fabrication 6,047
Plot #I‐33 Northwest Pallet 23,758
Plot #RM‐2, Sjostrom & Sons 11,753
Total land lease‐off airport 454,639$
AIRFEST REVENUES
Airshow
4915 Air Show‐ Concessions 110,000
4916 Air Show ‐ Sponsors 175,000
4917 Air Show ‐ Special Promotions/Packages 95,000
4918 Air Show ‐ Misc 10,000
4919 Air Show ‐ Admission 215,000
Total AirFest 605,000$
AIRPORT SERVICE FEES
4950 Fuel permits
Fuel permits are based upon fuel dispensing criteria.
Emery Air Charter 1,125
Courtesy Aircraft 375
Kaney Aviation 375
Pride Aircraft 1,125
Charles Thomas 375
UPS 375 Total fuel permits 3,750$
4955 Late fees
1,000$ Fees paid after due date are assessed a late fee in accordance with lease agreement.
A lease is considered a land lease if the land is leased and the lessee has added an improvement (building).
37
Operating Revenue Budget Justifications
4970 Snow removal/maintenance fee
12,000$
4971 International rubbish disposal fee
50,000$
4972 Deicing chemical application fee
160,000$
4975 Other airfield service fees
28,000$
OTHER
4930 Commercial operating agreements
HSI Investments, LLC, A19, A28 28,530 sq.ft. 7,988
Aircraft Systems, A1 8,064 sq.ft. 2,258
Avionics Place, A4 7,300 sq.ft. 2,044
Courtesy Aircraft, A3 10,682 sq.ft. 2,991
Emery Air Charter, A8, A12, A23 134,023 sq.ft. 37,526
Groom, Norm, T/H B6 1,449 sq.ft. 406
Kaney , A2, A14, A29 31,920 sq.ft. 8,938
Pride Aircraft, A20 4,620 sq.ft. 1,294
Alpine Aviation, A9 2,480 sq.ft. 694
Heritage Aero, A15 12,000 sq.ft. 3,360
Superior Plane Aircraft Coating, A27 3,000 sq. ft. 840
Non‐tenant commerical operators 6,766 Total commercial operating agreements 75,105$
4940 Foreign trade zone fees
General purpose/subzones ‐ various sizes (4) 75,000
Developer greenfield sites (10) 20,000
Service fees 25,000
Total foreign trade zone fees 120,000$
4960 Quarry feesRoyalties‐ Rockford Sand & Gravel 110,000$
4980 Stormwater fees
Budgeted storm water fees. (currently UPS is the only user)
United Parcel Service ($12,500 x 12) 150,000$
4990 Miscellaneous
Vending machine commissions 5,500
Scrap iron 1,800
Airport fines 2,000
Other 39,000
Total miscellaneous 48,300$
Charges to airport tenants for contracted snow removal and maint. services.
Budgeted Commercial Operating Agreements are based upon the actual square footage of the building footprint for
tenants inside the fence @$.28/sq.ft./yr. Non‐tenants doing business inside the fence pay a fee of $250.
Fees related to the disposal of international rubbish from flights.
Fees for labor, equipment and material related to deicing of tenant requested areas.
Fees for other services such as badging, training, finger printing and escorting.
38
Operating Expenses Summary
The Authority was broken down into eight departments with respective Directors or Managers responsible for each independent budget. You will have the opportunity to better understand the goals and objectives of the organization and how the various expenses align with our strategic plan. The eight departments include Administration and Finance, Facilities and Maintenance, Operations, Marketing, Terminal, AirFest, Cargo Development and Passenger Development. Each departmental budget is presented in the subsequent sections. This includes a summary of the department, goals for the coming year, the budget, and justifications. Each department except for AirFest is directly related to all revenue sources. Without the staff in each of these departments working together the revenue sources would not continue to evolve and strengthen. As the charts below show that a majority of the costs are related to directly operating the airport and maintaining all the infrastructure and buildings. The following pages are a combined report by department comparing to the prior year’s budget. The report allows for a better understanding of how certain costs are allocated.
Finance & Administration
21%
Facilities & Maintenance
41%
Operations21%
Marketing 4%
Terminal Services
7%
Cargo
Development
2%Passenger Development
4%
FYE2014 ActualExpenses by Department
Finance & Administratio
n20%
Facilities & Maintenanc
e38%
Operations15%
Marketing 5%
Terminal Services
9%AirFest8% Cargo
Development2%
Passenger Development
3%
FYE2015 BudgetExpenses by Department
39
Operating Expenses Combined Departm
ental B
udget
5400
Insurance
98,616
199,760
$
59,349
$
‐$
38,050
$
7,602
$
11,457
$
21,066
$
435,900
$
401,524
$
34,376
$
8.56%
5401
Insurance‐retirees
110,617
‐
‐
‐
‐
‐
‐
‐
110,617
95,356
15,262
16.00%
5450
Overtim
e
‐
51,115
11,222
‐
12,365
16,034
‐
‐
90,736
90,669
67
0.07%
5451
Double tim
e
‐
7,805
5,210
‐
11,658
10,637
‐
‐
35,309
33,818
1,492
4.41%
5500
Payroll taxes
52,422
86,060
34,128
‐
16,114
8,587
9,277
9,793
216,381
212,565
3,816
1.80%
5560
Pen
sion contribution
74,476
120,719
36,937
‐
21,622
8,702
14,700
13,562
290,718
296,512
(5,794)
(1.95%)
5561
Pen
sion contribution Graa Peb
sco
8,500
‐
‐
‐
‐
‐
‐
8,500
8,500
‐
0.00%
5600
Salaries/w
ages
714,471
927,510
365,213
‐
154,378
71,204
121,291
111,897
2,465,965
2,434,170
31,795
1.31%
5610
Pager pay
‐
7,800
‐
‐
‐
‐
‐
‐
7,800
7,800
‐
0.00%
5700
Tool allowance
‐
1,800
‐
‐
‐
‐
‐
‐
1,800
2,400
(600)
(25.00%)
5750
Training
2,250
5,250
11,500
‐
‐
‐
‐
‐
19,000
19,000
‐
0.00%
5800
Workers compen
sation insurance
2,103
70,440
25,392
‐
13,673
2,276
364
336
114,583
115,680
(1,098)
(0.95%)
5900
Uniform
s‐
7,099
3,106
‐
1,775
‐
‐
‐
11,980
12,667
(687)
(5.43%)
5901
Uniform
s‐lost,dam
aged
,rep
laced
‐
500
50
‐
422
‐
‐
‐
972
972
‐
0.00%
5903
Uniform
s‐protective clothing
‐
6,400
2,400
‐
600
‐
‐
‐
9,400
9,400
‐
0.00%
TO
TAL PER
SONNEL SER
VICES
1,063,456
1,492,257
554,507
‐
270,656
125,042
157,089
156,653
3,819,660
3,741,032
78,628
2.10%
6021
Ad‐Television
‐
‐
‐
60,000
‐
‐
‐
‐
60,000
70,000
(10,000)
(14.29%)
6022
Ad‐Radio
‐
‐
‐
60,000
‐
‐
‐
‐
60,000
80,000
(20,000)
(25.00%)
6023
Ad‐Billboards
‐
‐
‐
30,000
‐
‐
‐
‐
30,000
30,000
‐
0.00%
6024
Ad‐Direct
‐
‐
‐
10,000
‐
‐
‐
‐
10,000
10,000
‐
0.00%
6025
Ad‐Promotions
‐
‐
‐
45,000
‐
‐
‐
‐
45,000
55,000
(10,000)
(18.18%)
6026
Ad‐Print
‐
‐
‐
35,000
‐
‐
‐
‐
35,000
25,000
10,000
40.00%
6027
Ad‐Internet/w
eb‐
‐
‐
25,000
‐
‐
‐
‐
25,000
30,000
(5,000)
100.00%
6050
Audit
30,915
‐
‐
‐
‐
‐
‐
‐
30,915
29,915
1,000
3.34%
6040
Airfield rep
air
‐
32,000
‐
‐
‐
‐
‐
‐
32,000
22,000
10,000
45.45%
6100
Building repair
‐
37,500
‐
‐
20,000
‐
‐
‐
57,500
75,000
(17,500)
(23.33%)
6140
Conferences & m
eetings
6,375
‐
3,000
‐
‐
‐
9,000
9,725
28,100
29,375
(1,275)
(4.34%)
6150
Reven
ue guarantee
‐
‐
‐
‐
‐
‐
‐
35,000
35,000
45,000
(10,000)
0.00%
6160
Consulting services
98,500
‐
‐
108,000
‐
‐
‐
25,000
231,500
209,500
22,000
10.50%
6161
ARFF contractual services
‐
‐
603,000
‐
‐
‐
‐
‐
603,000
985,000
(382,000)
(38.78%)
6162
ARFF training
‐
‐
7,500
‐
‐
‐
‐
‐
7,500
25,000
(17,500)
(70.00%)
6163
LEO contractual services
‐
15,000
‐
‐
‐
‐
‐
15,000
‐
15,000
100.00%
6165
Airshow contractual
‐
‐
‐
‐
‐
219,500
‐
‐
219,500
‐
219,500
100.00%
6170
Airshow lodging
‐
‐
‐
‐
‐
39,000
‐
‐
39,000
‐
39,000
100.00%
6175
Airshow ren
tal services
‐
‐
‐
‐
‐
51,830
‐
‐
51,830
‐
51,830
100.00%
6185
Airshow food and beverages
‐
‐
‐
‐
‐
61,150
‐
‐
61,150
‐
61,150
100.00%
6190
Airshow transportation
‐
‐
‐
‐
‐
43,450
‐
‐
43,450
‐
43,450
100.00%
6201
Energy‐electric
25,000
128,525
‐
‐
110,000
‐
‐
‐
263,525
278,500
(14,975)
(5.38%)
6202
Energy‐natural gas
7,000
40,000
‐
‐
17,500
‐
‐
‐
64,500
56,000
8,500
15.18%
6300
Engineering services
41,000
‐
‐
‐
‐
2,500
‐
‐
43,500
39,000
4,500
11.54%
6321
Equip m
aint‐repairs/services
‐
12,415
‐
‐
66,785
‐
‐
‐
79,200
87,285
(8,085)
(9.26%)
6322
Equip m
aint‐service contracts
14,050
50,217
2,735
‐
64,456
‐
‐
‐
131,458
131,458
‐
0.00%
6350
Equipmen
t rental
7,960
58,400
2,715
‐
12,500
4,800
‐
‐
86,375
67,825
18,550
27.35%
6400
Insurance
160,000
‐
‐
‐
‐
12,000
‐
‐
172,000
160,000
12,000
7.50%
6402
Insurance ded
uctible
5,000
‐
‐
‐
‐
‐
‐
‐
5,000
5,000
‐
0.00%
CODE/LINE ITEM
, All Departm
ents
PER
SONNEL SER
VICES
CONTR
ACTU
AL SERVICES
% Chan
geDept 04
Fin/A
dmin
Dept 05
Fac/Maint
Dept 07
Marketing
Dept 08
Term
inal
Dept 09
Airfest
BUDGET
FYE15
BUDGET
FYE14
$ Chan
geDept 11 Air
Serv Dev
Dept 10 Bus
Dev
Dept 06
Opers
40
Operating Expenses Combined Departm
ental B
udget
CODE/LINE ITEM
, All Departm
ents
% Chan
geDept 04
Fin/A
dmin
Dept 05
Fac/Maint
Dept 07
Marketing
Dept 08
Term
inal
Dept 09
Airfest
BUDGET
FYE15
BUDGET
FYE14
$ Chan
geDept 11 Air
Serv Dev
Dept 10 Bus
Dev
Dept 06
Opers
6410
Landscaping
‐
6,000
‐
‐
12,500
‐
‐
‐
18,500
18,500
‐
0.00%
6440
Legal notices
4,025
‐
‐
‐
‐
‐
‐
‐
4,025
4,025
‐
0.00%
6451
Legal services‐general
50,000
‐
‐
‐
‐
‐
‐
‐
50,000
50,000
‐
0.00%
6452
Legal services‐personnel
6,000
‐
‐
‐
‐
‐
‐
‐
6,000
6,000
‐
0.00%
6453
Legal services‐other
1,800
‐
‐
‐
‐
‐
‐
‐
1,800
3,600
(1,800)
(50.00%)
6480
Licenses,titles & inspections
‐
1,500
9,500
‐
‐
1,175
‐
‐
12,175
11,000
1,175
10.68%
6510
Med
ical exams
500
920
80
‐
500
‐
‐
‐
2,000
2,000
‐
0.00%
6540
Mem
bership dues
37,980
150
1,345
‐
‐
‐
4,000
310
43,785
41,785
2,000
4.79%
6600
Other
5,000
1,000
‐
‐
1,580
500
‐
‐
8,080
8,580
(500)
(5.83%)
6640
Paymen
t services
6,100
‐
‐
‐
‐
‐
‐
6,100
6,100
‐
0.00%
6670
Permits & testing
‐
1,400
‐
‐
‐
‐
‐
1,200
2,600
1,400
1,200
85.71%
6700
Postage
3,600
‐
‐
‐
‐
‐
‐
3,600
3,600
‐
0.00%
6730
Printing
2,000
‐
13,250
‐
11,000
‐
‐
26,250
18,250
8,000
43.84%
6751
Telephone‐cellular
2,900
6,000
3,900
‐
1,800
2,800
1,260
1,091
19,751
25,758
(6,007)
(23.32%)
6752
Telephone‐local
18,611
14,750
5,100
‐
14,500
1,000
450
1,680
56,091
57,619
(1,528)
(2.65%)
6800
Travel & transportation
28,720
4,800
7,980
‐
‐
200
21,100
16,450
79,250
62,850
16,400
26.09%
6800
Customer care/customer service
‐
‐
‐
‐
‐
‐
‐
2,000
2,000
1,500
500
33.33%
6850
Utilities
1,500
6,200
‐
‐
5,800
‐
‐
‐
13,500
12,300
1,200
9.76%
6900
Veh
icle m
aintenance
‐
22,000
‐
‐
‐
‐
‐
‐
22,000
15,000
7,000
46.67%
6950
Waste rem
oval
‐
11,350
‐
‐
51,000
‐
‐
‐
62,350
62,350
‐
0.00%
TO
TAL CONTR
ACTU
AL SERVICES
564,536
435,127
661,855
386,250
378,921
450,905
35,810
92,456
3,005,860
2,958,075
47,785
1.62%
7100
Building repair
500
22,500
‐
‐
18,000
‐
‐
‐
41,000
38,500
2,500
6.49%
7140
Conferences & m
eetings
15,100
4,800
1,000
6,000
2,400
‐
4,000
8,500
41,800
45,800
(4,000)
(8.73%)
7200
Equipmen
t5,980
25,130
15,100
‐
19,600
‐
1,650
1,990
69,450
71,040
(1,590)
(2.24%)
7240
Fence/gate
‐
5,200
‐
‐
‐
‐
‐
‐
5,200
5,200
‐
0.00%
7271
Fuel‐diesel
‐
87,350
‐
‐
‐
‐
‐
‐
87,350
82,500
4,850
5.88%
7272
Fuel‐unleaded
‐
36,050
‐
‐
‐
‐
‐
‐
36,050
38,400
(2,350)
(6.12%)
7273
Fuel‐other
‐
1,500
‐
‐
‐
39,700
‐
‐
41,200
1,500
39,700
2646.67%
7300
Landscaping
‐
3,600
‐
‐
3,500
1,000
‐
‐
8,100
8,000
100
1.25%
7380
Other
1,000
1,000
‐
‐
2,000
‐
‐
‐
4,000
4,000
‐
0.00%
7400
Pavem
ent marking
‐
83,400
‐
‐
‐
‐
‐
‐
83,400
80,500
2,900
3.60%
7440
Pavem
ent repair
‐
22,000
‐
‐
‐
‐
‐
‐
22,000
22,000
‐
0.00%
7500
Raw
materials
‐
7,200
‐
‐
‐
‐
‐
‐
7,200
7,200
‐
0.00%
7501
Raw
materials‐deicing only
‐
434,640
‐
‐
‐
‐
‐
‐
434,640
434,640
‐
0.00%
7540
Signage
‐
12,500
‐
‐
3,000
4,000
‐
‐
19,500
15,500
4,000
25.81%
7580
Software
3,700
3,000
2,000
‐
‐
‐
‐
‐
8,700
9,700
(1,000)
(10.31%)
7600
Subscriptions
2,327
2,605
4,840
‐
1,355
500
335
4,595
16,557
16,357
200
1.22%
7660
Supplies‐janitorial
‐
5,000
‐
‐
17,400
3,500
‐
‐
25,900
22,400
3,500
15.63%
7690
Supplies‐lighting(airfield)
‐
80,000
‐
‐
‐
‐
‐
‐
80,000
90,000
(10,000)
(11.11%)
7720
Supplies‐mechanical (airfield)
‐
56,520
‐
‐
‐
‐
‐
‐
56,520
50,000
6,520
13.04%
7750
Supplies‐office
8,300
600
2,900
‐
‐
500
‐
‐
12,300
11,300
1,000
8.85%
7780
Supplies‐other
‐
2,500
‐
‐
9,000
2,700
‐
5,500
19,700
9,000
10,700
118.89%
7782
Supplies‐hardware
‐
7,000
‐
‐
‐
1,700
‐
‐
8,700
7,000
1,700
24.29%
7796
Supplies‐promotional
‐
‐
‐
9,000
‐
24,600
4,000
‐
37,600
13,000
24,600
189.23%
7810
Supplies‐specialty
‐
‐
20,000
‐
‐
‐
‐
‐
20,000
15,000
5,000
33.33%
7830
Supplies‐steel stock
‐
2,800
‐
‐
‐
‐
‐
‐
2,800
3,200
(400)
(12.50%)
COMMODITIES
41
Operating Expenses Combined Departm
ental B
udget
CODE/LINE ITEM
, All Departm
ents
% Chan
geDept 04
Fin/A
dmin
Dept 05
Fac/Maint
Dept 07
Marketing
Dept 08
Term
inal
Dept 09
Airfest
BUDGET
FYE15
BUDGET
FYE14
$ Chan
geDept 11 Air
Serv Dev
Dept 10 Bus
Dev
Dept 06
Opers
7850
Supplies‐storm
sew
er/drain
‐
1,500
‐
‐
‐
‐
‐
‐
1,500
1,500
‐
0.00%
7880
Supplies‐welding
‐
5,000
‐
‐
‐
‐
‐
‐
5,000
5,000
‐
0.00%
7901
Maint‐licen
sed veh
icles
‐
12,350
‐
‐
‐
‐
‐
‐
12,350
12,350
‐
0.00%
7902
Maint‐eq
uipmen
t
‐
78,400
‐
‐
‐
‐
‐
‐
78,400
78,400
‐
0.00%
TO
TAL COMMODITIES
36,907
1,004,145
45,840
15,000
76,255
78,200
9,985
20,585
1,286,917
1,198,987
87,930
7.33%
8400
Glycol reten
tion treatmen
t facility
‐
91,440
‐
‐
‐
‐
‐
‐
91,440
91,440
‐
0.00%
8410
Landfill en
vironmen
tal costs
‐
135,000
‐
‐
‐
‐
‐
‐
135,000
120,000
15,000
12.50%
8415
Property Taxes
‐
65,000
‐
‐
‐
‐
‐
‐
65,000
75,000
(10,000)
(13.33%)
TO
TAL OTH
ER‐
291,440
‐
‐
‐
‐
‐
‐
291,440
286,440
5,000
1.75%
FISCAL YEAR TOTA
LS1,664,899
$
3,222,969
$
1,262,202
$
401,250
$
725,832
$
654,147
$
202,884
$
269,694
$
8,403,877
$
8,184,534
$
219,343
$
2.68%
OTH
ER
42
Finance and Administration Department Summary The Finance and Administration Department is responsible for the administration, financial management of policies and procedures of the Greater Rockford Airport Authority. The department includes the Executive Director and the strategic goals and economic development planning. The functions of the department which is led by the Deputy Director include financial planning and analysis, human resource development, risk management, property development and grant administration. The Department establishes and maintains safeguards to protect the Authority’s assets, which includes risk management duties. The Authority has over one hundred tenants and the Department administers and manages all leases. The Department issues fuel permits, commercial operating agreements, and prepares annual Disadvantage Business Enterprise Reports and Occupational Safety Health Administration Reports. Other areas of responsibility include all human resource functions including, but not limited to, policies and procedures, hiring, labor union negotiations issues, personnel files, and insurance related issues. The Department also has oversight of procurement and information technology services. The following outlines the objectives for the department. We have included those below and future budgets will report the progress of these strategic objectives based on the targets outlined. Department initiatives to move the goals are listed below. Also noted are prior year results.
RevenuesGrowth in diversified revenue
sources.
Greater than 80% of revenues
from sources other than UPS.
Monitor annual report, schedule of major
revenue sources.
Performance appraisals
90% of all new hires rate
satisfactory or better in the first
6 mos. of employment
Employee turnoverTurnover rate at 8% or less
annually.
Identify organizational wide training priorities
to improve job skills and knowledge.
Create and implement training/ professional
development program.
Assessment of current and future workforce
needs – 3 – 6 months,
Create plan and business case for succession
plan 6‐12 months,
Approved resources in budget to support
leadership program. – 12 months,
Define processes, training and development
program 12 ‐ 18 months,
Communicate, execute and measure plan
results for first year 18 – 36 months.
INITIATIVES
Maintain financial
stabilityMaintain adequate reserves.
Maintain reserves equal to or
greater than 4 months of
expenses based on 3 year
history.
Monitor reserves monthly.
Implement initiatives for
succession planning
Development of written
succession plan
Creation, implementation and
measurement of plan within 36
months.
OBJECTIVES MEASURES TARGETS
Attract and retain a
qualified and workforce.
Performance appraisals done annually and
quarterly during first year of position.
Promote learning and
growth
Professional development and
or training opportunities and
participation.
Hours of training or
professional development
43
Finance and Administration Department Summary(con’t)
Present plan in 6‐9 mos.
Accept plan in 9‐12 mos.
Develop collaborative opportunities for
promotion, education and recruitment through
various businesses and community events.
Go Global, Air Show. Ice Sculpting Contest (clean
snow), Cub Scouts, College/High School Interns.
Maintain strong working relationship with
consulting firm, Point Trade Services, Inc.
Continue development of strong regional
network of economic development partners
through Leadership Forum, Go Global, visits and
attendance at their events.
Increase regional public awareness through
public speaking opportunities. Go Global,
Stateline World Trade Association and other
external networking opportunities.
Remain current on FTZB regulations, complying
with all requirements of the program of the FTZ
Board and CBP.
Throughput volume (product in
and out).
Increase throughput by $1
billion within five years.
Retain active membership in NAFTZ,
participating in committees/task forces,
attending meetings and speaking.
Provide a world class safe
and secure airport.Workplace Safety
5 or less OSHA recordable event
annually.
Research, prepare and present plan to
understand MRO market.
Excel as a community
partner for the region.
Participation and collaboration
in the community.
Continue and/or increase
participation.
TARGETS INITIATIVESOBJECTIVES MEASURES
Expand FTZ Activity
Increase number of activated
sites/subzones
Add an average of one new FTZ
operator/year.
Service Fee revenue to GRAA.
Annually generate revenue
through fees to cover 100% of
total RFD operating cost for FTZ
#176.
Develop a business plan
for heavy metal MRO
operations
Business plan for heavy metal
MRO
Goals and Objectives To ensure the operation and maintenance of a high quality, customer service oriented, financial self‐sufficient airport system and to support the purpose and goals of the Authority by providing exceptional financial and administrative management. Increase the economic impact of RFD to the region and the State of Illinois.
Annual Receipt of the GFOA budget award.
Monthly Reports presented to Board and Staff on a timely basis.
Periodic review of airport rates and fees with the goal of keeping the cost competitive to the market place.
Receipt of GFOA certificate of achievement for excellence in financial reporting.
Assure that cash flows meet the Authority’s needs while maximizing investment opportunities.
Research and investigate other revenue sources for the Authority including but not limited to advertising, fuel farming, and new lease development.
Investigate and plan future funding strategies for large capital improvements and projects to be presented to the Planning and Finance Committee.
Continue to develop opportunities for additional business opportunities at the airport to include aviation related education and MRO operations.
Annual receipt of the GFOA Popular Annual Financial Report.
44
Finance and Administration Department Summary(con’t)
Implementation and support of an Asset Management plan.
Work on tenant relations and to include a more viable communication plan through quarterly meetings to include an online tenant service/maintenance request form.
Develop a plan that supports growth and enable the flexible use of current facilities, create a database with available facilities to include all pertinent data/information.
Evaluate scenarios when developing planning alternatives of available facilities/properties.
Work on the development of a conceptual timeline of improvements to our facilities.
Prior Year Results Annual budget award and financial reporting certificate from GFOA received.
Acquisition of additional airfield properties for leasing.
Training for staff in various areas.
First award for the GFOA Popular Annual Report Award.
Received the result of the economic impact study with result of RFD creating almost $1 billion in annual economic impact.
45
Finance and Administration Department BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET
FYE10 FYE11 FYE12 FYE13 FYE14 FYE14 FYE15
PERSONNEL SERVICES
5400 Insurance 104,512$ 117,106$ 112,586$ 80,517$ 95,176$ 106,454$ 98,616$ 5401 Insurance‐retirees 105,266 95,991 (83,121) 80,472 95,356 107,088 110,617 5450 Overtime 2,367 373 168 494 564 27 ‐ 5500 Payroll taxes 65,683 68,312 79,123 69,705 52,572 79,882 52,422 5560 Pension contribution 65,722 107,103 87,284 68,898 75,654 78,339 74,476 5561 Pension contribution GRAA Pebsco 10,396 11,478 ‐ ‐ 8,500 ‐ 8,500 5600 Salaries/wages 789,725 869,525 955,772 635,515 699,388 695,374 714,471 5605 Outside labor ‐ ‐ ‐ ‐ ‐ 1,615 ‐ 5750 Training 8,616 8,997 889 710 2,250 234 2,250 5800 Workers compensation insurance 5,714 6,435 1,750 1,920 2,098 2,168 2,103
TOTAL PERSONNEL SERVICES 1,158,003 1,285,319 1,154,451 938,232 1,031,559 1,071,181 1,063,456 31,897$ 3.09%
CONTRACTUAL SERVICES
6050 Audit 36,461 36,871 28,765 29,629 29,915 30,535 30,915 6100 Building repair ‐ ‐ ‐ 4,710 ‐ ‐ ‐ 6140 Conferences & meetings 15,414 12,578 18,199 6,553 5,375 8,042 6,375 6160 Consulting services 128,129 66,662 72,427 91,373 91,500 107,004 98,500 6201 Energy‐electric 37,244 44,209 36,956 25,116 28,000 20,561 25,000 6202 Energy‐natural gas 15,537 14,490 9,674 8,018 7,000 2,966 7,000 6300 Engineering services 38,176 50,882 47,501 42,569 39,000 58,996 41,000 6321 Equip.maint‐repairs/services ‐ 142 ‐ ‐ ‐ ‐ ‐ 6322 Equip.maint‐service contracts 16,461 17,722 15,696 14,351 14,050 14,299 14,050 6350 Equipment rental 11,481 9,418 8,065 7,726 7,960 7,269 7,960 6400 Insurance 226,807 184,974 153,559 161,186 160,000 154,779 160,000 6402 Insurance deductible 1,000 ‐ ‐ ‐ 5,000 ‐ 5,000 6440 Legal notices 5,058 3,963 3,025 2,253 4,025 3,509 4,025 6451 Legal services‐general 66,695 51,453 79,571 81,520 50,000 137,615 50,000 6452 Legal services‐personnel 1,235 2,953 13,361 1,009 6,000 624 6,000 6453 Legal services‐other 1,839 900 2,700 5,675 3,600 2,100 1,800 6480 Licenses, titles & inspections 156 ‐ ‐ ‐ ‐ ‐ ‐ 6510 Medical exams 369 924 1,158 ‐ 500 25 500 6540 Membership dues 27,743 28,916 48,835 18,110 35,980 36,804 37,980 6600 Other 3,095 18,437 2,208 5,299 5,000 4,953 5,000 6640 Payment services 9,439 10,052 7,666 6,011 6,100 6,142 6,100 6700 Postage 7,177 5,754 3,480 3,714 3,600 3,357 3,600 6730 Printing 2,968 2,046 2,345 2,205 2,000 1,609 2,000 6751 Telephone‐cellular 5,495 6,065 6,155 4,435 3,700 3,249 2,900 6752 Telephone‐local 33,283 27,521 25,152 14,948 16,611 18,899 18,611 6753 Telephone‐long distance 3,762 2,776 410 ‐ ‐ ‐ ‐ 6800 Travel & transportation 30,889 24,822 50,484 26,816 28,720 19,990 28,720 6850 Utilities 1,284 1,152 1,162 1,150 1,500 1,079 1,500
TOTAL CONTRACTUAL SERVICES 727,196 625,682 638,553 564,377 555,136 644,404 564,536 9,400$ 1.69%
COMMODITIES
7100 Building repair ‐ 6 ‐ 3,847 500 442 500 7140 Conferences & meetings 8,873 9,147 7,745 10,305 15,100 11,790 15,100 7200 Equipment 11,816 5,050 5,058 11,830 9,960 2,160 5,980 7380 Other 1,292 3,196 1,799 643 1,000 1,846 1,000 7580 Software ‐ 2,941 395 32 4,700 1,728 3,700 7600 Subscriptions 3,329 4,083 4,823 3,871 4,127 2,095 2,327 7750 Supplies‐office 9,876 9,660 6,824 6,492 8,300 6,396 8,300
TOTAL COMMODITIES 35,185 34,083 26,923 37,020 43,687 26,695 36,907 (6,780)$ ‐15.52%
DEPARTMENT TOTAL 1,920,384$ 1,945,085$ 1,819,927$ 1,539,629$ 1,630,382$ 1,742,280$ 1,664,899$ 34,517$ 2.12%
CODE/LINE ITEM, Department 04%Chg/FY14
Budget
$Chg/FY14
Budget
46
Finance and Administration Budget Justifications
PERSONNEL SERVICES
5400 Insurance
Health, dental and life insurance costs for employees and eligible retirees.
Health insurance
The annual cost for the Authority at 80% is as follows by each type of coverage:
Employee = $5932.64/$4069.00
Employee + Spouse = $19,116.52/$17,450.00
Employee + Children = $10,010.32
Family = $15,277.80/$13,359.00
Medicare Supp. D = $1,869.98
Dental insurance
The annual cost for dental is based on cobra rates as the program is self‐funded.
Employee = $361.20
Family = $981.60
Life insurance
Employees:
Health 88,912
Dental 5,876
Life 3,828 Total employee insurance 98,616$
5401 Retiree insurance
Health 101,836
Dental 8,684
Life 97 Total retiree insurance 110,617$
5500 Payroll taxes
FICA ‐ 6.2% of base wage up to $117,000 36,715
Medicare ‐ 1.45% of base wage 10,164
State unemployment ‐ 4.85% of the first $12,960 5,543
Total payroll taxes 52,422$
5560 Pension contribution
IMRF pension fund ‐ 12.12% 74,476$
5561 Pension contribution ‐ 475 plan
Executive Director match 8,500$
5600 Salaries
Commissioner stipends ‐ Seven commissioners 12,600
Salaries ‐ 8 full time employees 701,871
Total salaries 714,471$
5750 Training
Procurement/finance 750
College courses ‐ aviation/business/IT 1,500
Total training 2,250$
The annual cost for the Authority for medicare eligible retirees is listed below; all those not medicare eligible have the
same coverage as employees. The Authority is partially self funded and estimates for this partial funding are incorporated
into the annual costs noted below.
Life and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life at
$.23/$1000 and AD&D at $.05/$1000. Eligible retireees are also provided with a $2,500 life insurance benefit.
47
Finance and Administration Budget Justifications
5800 Workers compensation insurance 2,103$
CONTRACTUAL SERVICES
6050 Audit
Independent auditor 16,000
GFOA award applications ‐ Financial reporting and budget 715
Grant audits 13,000
Report production costs 1,200
Total audit 30,915$
6140 Conferences & meetings
RAEDC annual meeting 400
Chamber of Commerce, State of the City Luncheon 500
AAAE annual conference 800
Great Lakes AAAE conference 650
Allegiance air service planning conference 125
Other conferences ($300 ea) 900
Business lunches/dinners 3,000
Total conferences & meetings 6,375$
6160 Consulting services
Information technology consultant 12,000
Other 2,000
Accounting software consultant 3,000
Financial analyst 2,500
HR Support 4,000
FTZ Administration 75,000
Total consulting services 98,500$
6201 Energy‐electric (60 Airport Dr.) 25,000$
6202 Energy‐natural gas (60 Airport Dr.) 7,000$
6300 Engineering services
Cost for professional engineering services rendered by outside engineering firms.
Crawford, Murphy & Tilly, Inc. 40,000
Other 1,000
Total engineering services 41,000$
6322 Equip maint‐service contracts
Software support ‐ Best FAS 1,680
Software support ‐ Sage 3,720
Software support ‐ Peopletrak 100
Computer support 600
Copy machine ‐ usage 5,450
Internet security 2,000
Telephone system 500
Total equipment maintenance‐service contracts 14,050$
6350 Equipment rental
Postage/scale meter lease ($650/qtr) 2,600
Copy machine ($430/mo) 5,160
Other 200
Total equipment rental 7,960$
48
Finance and Administration Budget Justifications
6400 Insurance
Aviation liability 35,000
Automotive 23,000
Property 84,000
Public officials liability 18,000
Total insurance 160,000$
6402 Insurance deductible 5,000$
6440 Legal notices
Annual receipts & disbursement report 1,125
Bid documents (est $155/ad‐approx 16) 2,400
Public meeting notices & other 500
Total legal notices 4,025$
6451 Legal services‐general 50,000$
6452 Legal services‐personnel 6,000$
6453 Legal services‐other 1,800$
6510 Medical exams 500$
6540 Membership dues
EDC ‐ Rockforward program ‐ voucher trade for $5,000 25,000
ACI ‐ NA 7,500
AAAE Legislative Membership 1,750
Chamber of Commerce (Belvidere, Freeport, Loves Park‐Machesney Park, & Rockford) ‐ voucher trade 1,500
Employers Association 220
National Air Transport Association 400
National Institute of Governmental Purchasing 330
American Association of Airport Executives (AAAE) 275
Illinois Certified Professional Accountants Society (ICPA) 225
American Certified Professional Accountants Society (AICPA) 290
Government Finance Officers Assoc (GFOA) ‐ 1 160
Association of Airport Internal Auditors (AAIA) 125
Airport Purchasing Group (APG) 205
Total membership dues 37,980$
6600 Other ‐ Contractual services not itemized in other accounts. 5,000$
6640 Payment services
Bi‐weekly payroll processing & quarterly reports 6,000
Other 100
Total payment services 6,100$
6700 Postage
Overnight mail 300
Postage, metered (approx $250/mo) 3,000
Other 300
Total postage 3,600$
Publication costs for public notices, including bid documents, Treasurer's Report, personnel notices.
49
Finance and Administration Budget Justifications
6730 Printing
Checks, statements, HR forms 500
Photographs 500
Business cards 500
Miscellaneous 500
Total printing 2,000$
6751 Telephone‐cellular 2,900$
6752 Telephone‐local
IP phone and internet 7,131
Remote internet connection 580
Back up internet connection 2,500
Answering service 8,400
Total telephone ‐ local 18,611$
6800 Travel & transportation (airfare/hotel/per diem)
AAAE National meeting/training (4n) 1,590
GFOA/AAAE meeting/training (4n) 1,590
Allegiant air service meeting (3n) 1,330
Other business meetings DC, etc. 5,000
Other business meetings (3t) (2n) 3,210
Director business expense 12,000
Mileage 4,000
Total travel & transportation 28,720$
6850 Utilities
Water 1,000
Sewer 500
Total utilities 1,500$
COMMODITIES
7100 Building repair
Materials for administration and operations building. 500$
7140 Conferences & meetings
In‐house lunch/meetings 2,500
Bottled water 500
Employee events 4,800
Employee/Board Luncheon (monthly) 2,700
Wellness program 2,600
Meeting supplies 2,000
Total conferences & meetings 15,100$
7200 Equipment
Computers ‐ replacements(3) 3,980
Printer and camera 2,000
Total equipment 5,980$
7380 Other ‐ Commodities not itemized in other accounts. 1,000$
Amounts include an estimate of $550/trip airfare, lodging of $185/night and M&I of $75/day for domestic and
$2900/airfare, lodging $300 and M&I of $100/day for international.
50
Finance and Administration Budget Justifications
7580 Software
Adobe Pro upgrade ‐ 16 seats 3,200
Other 500
Total software 3,700$
7600 Subscriptions
Digicast email (AAAE) 300
Internet ‐ Winnebago County 1,260
Other (includes publications) 500
Rockford Register Star 267
Total subscriptions 2,327$
7750 Supplies‐office
Copier & printer paper/fax cartridges 1,500
Office supplies 5,000
Stationery/envelopes for stock 1,500
Binding machine 300
Total supplies‐office 8,300$
51
Facility and Maintenance Department Summary The Facilities and Maintenance Department is responsible for maintaining greater than 17.5 million square feet of runways, taxiways, aprons and roadways, including keeping them free of snow, ice and debris, as well as maintaining the airfield lighting system. This also includes maintaining 15 buildings and properties owned by the airport authority as well as a large fleet of vehicles and equipment; directing and coordinating construction projects; and the oversight of the glycol retention/treatment facility. Following are the strategic objectives outlined in the most recent plan. Department initiatives to move the goals are listed below. Also noted are prior year results.
Performance appraisals90% of all new hires rate satisfactory or better in the f irst 6 mos. of employment
Employee turnoverTurnover rate at 8% or less annually.
Identify organizational w ide training priorities to improve job skills and know ledge.Create and implement training/ professional development program.Ensure safe operational status during times of severe w eather.
Enhance safety, capacity, and marketability w ith the follow ing: improved nav-aids, perimeter roadw ay, airport control tow er, rescue and f iref ighting, hydrant fueling.
Workplace Safety5 or less OSHA recordable event annually.
Work order system that improves eff iciencies and measures future needs.Preventative maintenance checks and services (PMCS) and scheduled equipment replacement program.
Energy/Fuel Savings3% reduction in energy usage per year.
Utilization and expansion of conservation and alternative energy opportunities.
Kishw aukee Street entranceDesign and landscape plan for stone pillars at Kishw aukee Street entrance.
Falcon Road rehabilitationProactively w ork w ith state/local agencies to enable funding for Falcon Rd. rehabilitation.
Work w ith local utility providers to enhance safety and operational integrity of RFD.
Plan to evaluate airport projects to incorporate the eff icient placement of all future utility infrastructures.
Completion of an environmental w ork plan.
Comprehensive environmental plan.
Improve and upgrade infrastructure condition
Balance betw een new opportunities and maintenance of existing infrastructure
Make investments based on budget, capital, and master plan
Protect and enhance the environment.
Enhancement of landside infrastructure and aesthetics
Airside/street side and facility improvements.
Environmental w ork plan.
OBJECTIVES MEASURES TARGETS INITIATIVES
Provide a w orld class safe and secure airport.
Attract and retain a qualif ied and w orkforce.
Performance appraisals done annually and quarterly during f irst year of position.
Promote learning and grow th
Professional development and or training opportunities and participation.
Hours of training or professional development
FAA Annual Certif ication 0 def iciencies
Goals and Objectives The overall goal of the Facilities and Maintenance Department is to insure that the Chicago Rockford International Airport’s airfield infrastructure and properties are safe and secure for all those using the airport.
52
Facility and Maintenance Department Summary(con’t)
Schedule fact finding visits to other airports to study “best practices”.
Make available increased, outside training opportunities for key department personnel.
Develop performance metrics and gather specific department information to be utilized in preliminary asset management implementation.
Maintain a snow removal equipment fleet in a manner that insures exceptional reliability during winter weather operations.
Snow removal planning and coordination with a goal to maintain a safe and open airfield under any winter weather condition. Annual tenant snow removal meeting takes place the 3rd week in October annually. In addition a UPS/RFD snow removal meeting the same time annually.
Complete a pavement marking evaluation and create rotation plan for all future pavement marking changes and updates.
Investigate and evaluate opportunities to save energy costs in all major airport facilities while reducing RFD's carbon footprint. RFD Energy Team meets approximately every other month to evaluate RFD’s energy future.
Continue surplus property disposal program for the sale of old and unused equipment to contribute to future capital purchases.
Prior Year Results
All staff had training opportunities during the year. Five staff members attended the annual snow symposium in Buffalo, NY this past year.
Implementation of additional energy upgrade to reduce usage and costs by 12% in the last year.
Annual review of snow and ice control plan, tenant snow removal meeting and UPS snow removal meetings held annually.
Staff began a pavement marking removal and remarking program during the year with positive result.
Approximately $20,000 worth of surplus equipment and matrials were sold throught the State of Illinois Bid online auction site during the year.
53
Facilities and Maintenance Department Budget
ACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET
FYE10 FYE11 FYE12 FYE13 FYE14 FYE14 FYE15
5400 Insurance 181,733$ 191,480$ 208,933$ 169,261$ 178,825$ 186,806$ 199,760$
5450 Overtime 84,550 116,196 101,589 108,043 64,541 112,244 51,115
5451 Double time 32,165 53,457 28,542 21,976 16,912 59,947 7,805
5500 Payroll taxes 91,289 95,805 93,693 76,222 90,639 78,813 86,060
5560 Pension contribution 84,414 143,999 151,092 122,558 131,314 138,527 120,719
5600 Salaries/wages 1,125,516 1,148,567 1,156,072 898,632 974,805 919,030 927,510
5610 Pager pay 5,200 5,200 5,200 7,000 7,800 7,800 7,800
5700 Tool allowance 1,800 2,350 2,400 2,200 2,400 2,050 1,800
5750 Training 3,335 6,674 5,518 1,200 5,250 5,144 5,250
5800 Workers compensation insurance 171,308 145,705 100,734 95,939 74,035 77,037 70,440
5900 Uniforms 4,737 5,628 6,031 8,209 7,691 7,838 7,099
5901 Uniforms‐lost,damaged,replaced 552 340 137 1,102 500 914 500
5903 Uniforms‐other 4,809 5,341 5,434 5,170 6,400 3,569 6,400
TOTAL PERSONNEL SERVICES 1,791,408 1,920,741 1,865,376 1,517,513 1,561,112 1,599,718 1,492,257 (68,855) ‐4.41%
6040 Airfield repair 50 7,686 1,327 17,922 22,000 14,170 32,000
6100 Building repair 24,158 26,353 32,909 54,881 45,000 52,964 37,500
6140 Conferences & meetings 2,002 903 3,804 581 515
6161 ARFF contractual services 812,660 858,724 1,118,792 ‐ ‐ ‐ ‐
6162 ARFF training 29,876 28,000 13,695 ‐ ‐ ‐ ‐
6201 Energy‐electric 168,881 195,555 174,993 118,639 132,500 114,401 128,525
6202 Energy‐natural gas 37,148 36,874 30,139 57,603 36,500 73,315 40,000
6321 Equip maint‐repairs/services 27,514 36,397 32,416 33,328 20,500 56,203 12,415
6322 Equip maint‐service contracts 85,865 91,456 84,619 58,828 50,217 47,852 50,217
6350 Equipment rental 12,963 32,065 21,381 51,677 42,350 37,965 58,400
6410 Landscaping 705 167 6,183 8,006 6,000 7,586 6,000
6480 Licenses, titles & inspections 8,996 13,087 8,989 1,475 1,500 1,713 1,500
6510 Medical exams 1,024 1,298 973 1,668 920 1,320 920
6540 Membership dues 925 1,055 920 35 150 151 150
6600 Other 28 686 ‐ 94 2,000 237 1,000
6670 Permits & testing 623 2,256 1,298 175 1,400 2,575 1,400
6751 Telephone‐cellular 14,101 14,647 14,607 9,468 12,875 5,689 6,000
6752 Telephone‐local 12,772 15,472 24,570 17,624 11,750 16,702 14,750
6753 Telephone‐long distance 294 294 1 ‐ ‐ 3 ‐
6800 Travel & transportation 4,274 10,375 9,809 1,163 4,800 2,373 4,800
6850 Utilities 5,379 4,909 6,942 7,764 5,000 9,221 6,200
6900 Vehicle maintenance 12,443 16,286 14,837 28,111 15,000 22,921 22,000
6950 Waste removal 10,296 11,015 10,489 11,032 11,350 8,750 11,350
TOTAL CONTRACTUAL SERVICES 1,272,977 1,405,560 1,613,690 480,072 421,812 477,027 435,127 13,315 3.16%
7100 Building repair 14,483 16,175 13,380 17,909 18,000 15,366 22,500
7140 Conferences & meetings 6,040 10,408 5,788 10,683 4,800 10,890 4,800
7200 Equipment 19,164 31,048 25,890 16,505 25,130 24,839 25,130
7240 Fence/gate 3,983 5,334 5,081 3,960 5,200 1,599 5,200
7271 Fuel‐diesel 75,118 110,283 80,008 116,263 82,500 135,627 87,350
7272 Fuel‐unleaded 31,191 32,555 38,653 41,992 38,400 43,139 36,050
7273 Fuel‐other 574 1,275 322 1,022 1,500 1,704 1,500
7300 Landscaping 5,830 1,479 4,048 3,506 4,500 3,097 3,600
7380 Other 313 305 913 ‐ 1,000 77 1,000
7400 Pavement marking 50,206 62,322 53,631 75,054 80,500 57,237 83,400
7440 Pavement repair 4,486 3,460 3,150 18,550 22,000 18,169 22,000
7500 Raw materials 781 ‐ 11,283 487 7,200 253 7,200
7501 Raw materials‐deicing only 352,255 440,148 254,852 420,694 434,640 388,207 434,640
7540 Signage 9,932 1,813 17,409 11,686 12,500 832 12,500
7580 Software 2,920 2,240 5,110 ‐ 3,000 1,994 3,000
7600 Subscriptions 1,404 425 3,451 2,014 2,605 4,179 2,605
7660 Supplies‐janitorial 12,039 4,609 5,217 2,968 5,000 3,660 5,000
7690 Supplies‐lighting/electrical (airside) 34,418 63,880 77,132 80,112 90,000 64,160 80,000
7720 Supplies‐snow removal wafers, poly‐stee 42,174 68,498 29,532 52,505 50,000 64,924 56,520
7750 Supplies‐office 2,128 1,876 2,334 942 600 421 600
7780 Supplies‐other 860 2,849 3,312 3,925 2,500 3,113 2,500
7782 Supplies‐hardware 7,342 9,903 9,119 6,272 7,000 10,586 7,000
7810 Supplies‐specialty 10,026 924 13,950 ‐ ‐ ‐ ‐
7830 Supplies‐steel stock 659 842 796 646 3,200 330 2,800
7850 Supplies‐storm sewer/drain ‐ 872 362 ‐ 1,500 ‐ 1,500
7880 Supplies‐welding 2,776 4,026 4,313 4,891 5,000 4,123 5,000
7901 Maint‐licensed vehicles 13,040 13,666 11,019 19,005 12,350 17,795 12,350
7902 Maint‐equipment 99,286 88,756 68,695 68,402 78,400 78,953 78,400
TOTAL COMMODITIES 803,425 979,969 748,751 979,992 999,025 955,275 1,004,145 5,120 0.51%
OTHER
8400 Glycol retention treatment facility 145,644 101,606 107,684 101,179 91,440 81,953 91,440
8410 Landfill environmental costs 167,065 233,061 353,464 (214,189) 120,000 191,426 135,000
8415 Property taxes 68,630 70,298 41,077 99,586 75,000 62,219 65,000
TOTAL OTHER 381,338 404,966 502,226 (13,424) 286,440 335,597 291,440 5,000 1.75%
DEPARTMENT TOTAL 4,249,149$ 4,711,235$ 4,730,042$ 2,964,152$ 3,268,389$ 3,367,617$ 3,222,969$ (45,420)$ ‐1.39%
$Chg/FY14
Budget
%Chg/FY14
BudgetCODE/LINE ITEM, Department 05
CONTRACTUAL SERVICES
COMMODITIES
PERSONNEL SERVICES
54
Facilities and Maintenance Department Justifications
5400 Insurance
Health insurance
The annual cost for the Authority at 80% is as follows by each type of coverage:
Employee = $5932.64/$4069.00
Employee + Spouse = $19,116.52/$17,450.00
Employee + Children = $10,010.32
Family = $15,277.80/$13,359.00
Dental insurance
The annual cost for dental is based on cobra rates as the program is self‐funded.
Employee = $361.20
Family = $981.60
Life insurance
Health 182,251
Dental 11,144
Life 6,364 Total employee insurance 199,760$
5450 Overtime
Estimated 1,239 hours of overtime for hourly employees. 51,115$
5451 Double time
Estimated 150 hours of overtime for hourly employees. 7,805$
5500 Payroll taxes
FICA ‐ 6.2% of base wage up to $117,000 61,754
Medicare ‐ 1.45% of base wage 14,442
State unemployment ‐ 4.85% of the first $12,960 9,864
Total payroll taxes 86,060$
5560 Pension contribution
IMRF pension fund ‐ 12.12% 120,719$
5600 Salaries
Includes 17 full time employees 927,510$
5610 Pager pay (2ee @ $100/wk) 7,800$
5700 Tool allowance (4ee @ $50/mo) 1,800$
5750 Training
Environmental 1,000
Energy efficiency 1,250
Other 3,000
Total training 5,250$
5800 Workers compensation insurance 70,440$
5900 Uniforms 7,099$
5901 Uniforms ‐ lost/damage/replacement 500$
PERSONNEL SERVICES
The Authority is partially self funded and estimates for this partial funding are incorporated into the annual costs noted
below.
Life and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life at
$.23/$1000 and AD&D at $.05/$1000.
55
Facilities and Maintenance Department Justifications
5903 Uniforms ‐ protective clothing
Protective clothing allowance 6,400
Total other uniforms 6,400$
6040 Airfield repairContractual services for repairs to lighting system, pavement surfaces and plumbing sytems. 32,000$
6100 Building repair
Overhead door repairs 3,000
Automatic door repairs 2,000
Pest control 4,100
Rug runners/facility entrances 4,000
Bldg security (Term, Prof, Ops) Fire/ADT or other 4,000
Sewer/drainage jetting and pumping 6,700
Other 13,700
Total building repair 37,500$
6201 Energy‐electric 128,525$
6202 Energy‐natural gas 40,000$
6321 Equip maint‐repairs/services
HVAC units 7,500
Emergency generators ‐ airfield 2,715
Building automation system 1,200
Radio repairs 1,000
Total equipment maintenance‐repairs/services 12,415$
6322 Equip maint‐service contracts
Copy machine usage 192
Weather service 2,000
Telephone system 525
Lawn mowing 33,000
Elevator 4,000
Alarm Monitoring 3,000
Green screen development ‐ energy efficiency tracking page 2,500
Other 5,000
Total equipment maintenance‐service contracts 50,217$
6350 Equipment rental
Aerial 80' lift for apron lighting (UPS) 11,500
Specialty equipment attachments 1,000
Pavement marking removal equipment 24,000
Copy machine 500
Building maintenace equipment 1,000
Temporary utility meters 200
Fire hydrant 1" water meter (yearly) 200
Other 20,000
Total equipment rental 58,400$
6410 Landscaping 6,000$
CONTRACTUAL SERVICES
Contractual service costs for the repair or modification to various airport owned and maintained buildings including pest
control.
56
Facilities and Maintenance Department Justifications
6480 Licenses, titles, inspections & background checks
Rolling stock yearly license plates 400
Trucks/trailers semi‐annual inspections 150
Title services 300
Fire extinguishing test 650
Total license, titles & inspections 1,500$
6510 Medical exams 920$
6540 Membership dues
Water Environment Federation 150
Total membership dues 150$
6600 Other ‐ Contractual costs not itemized in other accounts. 1,000$
6670 Permits & testing
Backflow preventors 900
UPS sanitary lift station certification 500
Total permits & testing 1,400$
6751 Telephone‐cellular 6,000$
6752 Telephone‐local
IP phone and internet services 14,750
Total telephone‐local 14,750$
6800 Travel & transportation
Energy efficiency 1,800
Other conferences (3ee) 3,000
Total travel & transportation 4,800$
6850 Utilities
Water (8 meters) 3,100
Sewer (5 meters) 3,100
Total utilities 6,200$
6900 Vehicle maintenance
Brake rotors turned
Hydraulic pumps/motors/valves/cylinders rebuilt
Specialty fabrication/machine work
Vehicle oil and fluid analysis
Front end alignments
Split‐rim tire repairs
Total vehicle maintenance 22,000$
6950 Waste removal
Biohazard 660
Debris and extra dumpster pick‐ups 3,500
Environmental 2,790
Paper recycle 350
Used parts/oil/fuel filters 3,800
Other 250
Total waste removal 11,350$
Yearly license renewal on all applicable vehicles and trailers and any necessary semiannual inspection.
57
Facilities and Maintenance Department Justifications
7100 Building repair
Materials used in connection with the maintenance of all Authority owned buildings not covered by
tenant leases. 22,500$
7140 Conferences & meetings
Water rental and delivery 1,300
Meals for snow removal crews/special event crews 3,000
Miscellaneous 500
Total conferences & meetings 4,800$
7200 Equipment
Computer replacements (3) 4,830
Display Monitor (46") 2,300
Hand tools/small power tools 5,950
Building automation system field components 2,000
Hose 2,700
Hardware 1,400
Signage 2,000
Battery replacement 850
Wildlife expendables ‐ cracker shells, caps, pyro shells 1,600
Wildlife depredation tools 1,500
Total equipment 25,130$
7240 Fence/gate ‐ perimeter fence and gate supplies 5,200$
7271 Fuel‐diesel ‐ 25,000g @ 3.3/g 87,350$
7272 Fuel‐unleaded ‐ 12,000g @ 3.2/g 36,050$
7273 Fuel‐other 1,500$
7300 Landscaping
Supplies associated with turf maintenance of all Authority grounds not covered in tenant lease. 3,600$
7380 Other ‐ Costs of commodities not itemized in other accounts. 1,000$
7400 Pavement marking
Pavement marking paint 42,000
Type I and III glass beads 28,000
Pre‐formed thermo plastic ‐ non‐movement areas 7,500
Other 5,900
Total pavement marking 83,400$
7440 Pavement repairIncludes joint sealer, primers, asphalt, stone, backing rod, rubber seals and other materials directly
associated with pavement repair. 22,000$
7500 Raw materials
Sand 1,700
Gravel 5,500
Total raw materials 7,200$
COMMODITIES
58
Facilities and Maintenance Department Justifications
7501 Raw materials‐deicing only
Potassium acetate 180,000
Road salt 9,120
Other FAA approved deicing material 25,000
Urea 215,000
Sidewalk ice melt 5,520
Total raw materials‐deicing only 434,640$
7540 SignageRepair & replacement of signage for buildings, infield roadways and airfield directional inserts. 12,500$
7580 Software
Includes upgrades to maintenance related software. 3,000
Total software 3,000$
7600 Subscriptions
Rockford Register Star 200
Internet ‐ Winnebago County 1,680
Other 725
Total subscriptions 2,605$
7660 Supplies‐janitorial
Consumable products 3,200
Cleaners 1,000
Strippers/waxes 200
Mop heads/brushes/brooms/bags/etc 600
Total supplies‐janitorial 5,000$
7690 Supplies‐lighting/electrical (airside)
Repair and replacement of existing runway, taxiway, and apron lighting systems. 80,000$
7720 Supplies‐snow removal wafers/poly‐steel bladesBroom core replacements for snow removal equipment. 56,520$
7750 Supplies‐office
Office supplies 600
Total supplies‐office 600$
7780 Supplies‐other
Other supplies not itemized in other accounts 2,500$
7782 Supplies‐hardware (expendable supplies) 7,000$
7830 Supplies‐steel stock 2,800$
7850 Supplies‐storm sewer/drainDrain tile, culverts, flares, storm drain covers, plates and other replacement items and emergency repair
of airport infrastructure. 1,500$
7880 Supplies‐welding 5,000$
7901 Maintenance‐licensed vehicles
Supplies for approximately 15 vehicles. 12,350$
59
Facilities and Maintenance Department Justifications
7902 Maintenance‐equipment
Supplies for repair of Authority equipment. 78,400$
OTHER
8400 Glycol retention treatment facility
Electric 41,000
Testing 5,800
Equipment service and repairs 8,500
Chemicals 22,500
Wireless monitoring fees 1,140
Consulting/Engineering/Environmental 8,500
Building automation system field components 1,600
Supplies 1,000
Permit and pest control 1,400
Total glycol retention treatment facility 91,440$
8410 Landfill and environmental costs ‐ legal and engineering costs 135,000$
8415 Property taxesProperty taxes paid for Authority owned properties including land and improvements. 65,000$
60
Operations Department Summary The Operations Department has the overall responsibility for the safe and secure operation of the airfield and airport. This includes monitoring and ensuring compliance with all FAA, TSA, Federal, State and Local regulatory requirements; and that all air carriers, general aviation aircraft and airport tenants operate in a safe manner; administrating the airport’s badging, background check and security systems; wildlife control, inspection and oversight of all fueling operations and numerous other responsibilities as defined by FAR139 and TSA 1542 regulations. The department is also responsible for coordinating with the Facilities and Maintenance Department for maintenance and snow removal performed on and around the runways, taxiways, and ramps.
Performance appraisals90% of all new hires rate satisfactory or better in the f irst 6 mos. of employment
Employee turnoverTurnover rate at 8% or less annually.
Identify organizational w ide training priorities to improve job skills and know ledge.Create and implement training/ professional development program.Ensure safe operational status during times of severe w eather.
TSA Audit 0 deficiencies
Operational Status 0 hours closed
Workplace Safety5 or less OSHA recordable event annually.
Implement SMS (Safety Management System)
SMS Compliance SMS Compliance. Still being developed based on FAA regulations.
OBJECTIVES MEASURES TARGETS INITIATIVES
Enhance safety, capacity, and marketability w ith the follow ing: improved nav-aids, perimeter roadw ay, airport control tow er, rescue and f iref ighting, hydrant fueling.
Provide a w orld class safe and secure airport.
FAA Annual Certif ication 0 deficiencies
Attract and retain a qualif ied and w orkforce.
Performance appraisals done annually and quarterly during f irst year of position.
Promote learning and grow th
Professional development and or training opportunities and participation.
Hours of training or professional development
Goals and Objectives The overall goal of the Operations Department is to maintain the safety and security of the Chicago Rockford International Airport for all of our users. Furthermore the department will adhere to the highest level of customer service and compliance with Part 139 of the FAA regulations, (and all TSA 1542 regulations) consistent with operating a world class commercial airport. Finalize Rules and Regulations, and roll out to tenants during FY 15.
Work with airport fire department and contract security to better develop the incident command structure.
Assist RFD administration staff with the development of the airport safety program.
Stay up to date with the FAA’s SMS changes, and begin to implement SMS program as needed.
Make available increased, outside training opportunities for all department personnel.
Continue to update all RFD Standard Operating Procedures (SOPS).
Complete annual FAA certification process with no discrepancies.
61
Operations Department Summary(con’t) Continue to monitor all policies to insure RFD remains in compliance with FAR 139, all TSA 1542
regulatory requirements as well as appropriate federal, state and local regulations as they relate to airport operations.
Snow removal planning and coordination with a goal to maintain a safe airfield under any winter weather condition. Safety is the number one goal, operational status is secondary.
Monitor and maintain all regulatory documents (AEP, ACM, SICP, SWPPP) and update as necessary.
Increase awareness and training of all personnel operating in the movement area, with the ultimate goal of eliminating runway incursions/vehicle deviations.
Prior Year Results
Rules and Regulations draft complete
0 Aircraft accident / incidents
0 Runway incursions
0 Vehicle pedestrian deviations
All staff had training opportunities during the year.
Final draft of the ASP complete and awaiting TSA approval
62
Operations Department Budget
ACTUAL BUDGET ESTIMATE BUDGET
FYE13 FYE14 FYE14 FYE15
5400 Insurance 61,798$ 69,341$ 77,999$ 59,349$
5450 Overtime 34,093 15,535 32,765 11,222
5451 Double time 19,863 7,704 25,167 5,210
5500 Payroll taxes 28,430 37,547 32,391 34,128
5560 Pension contribution 43,125 44,131 54,427 36,937
5600 Salaries/wages 340,709 404,595 395,967 365,213
5750 Training 4,374 11,500 9,813 11,500
5800 Workers compensation insurance 23,880 28,574 29,716 25,392
5900 Uniforms 2,992 3,619 3,570 3,106
5901 Uniforms‐lost,damaged,replaced 266 50 841 50
5903 Uniforms‐other 2,124 2,400 1,814 2,400
TOTAL PERSONNEL SERVICES 561,654 624,996 664,470 554,507 (70,489) ‐11.28%
6140 Conferences & meetings 175 3,000 851 3,000
6161 ARFF contractual services 1,142,573 985,000 952,241 603,000
6162 ARFF training 31,050 25,000 24,964 7,500
6163 LEO contractual services ‐ ‐ 25,456 15,000
6322 Equip maint‐service contracts 2,826 2,735 1,005 2,735
6350 Equipment rental 686 2,715 1,858 2,715
6480 Licenses, titles & inspections 4,000 9,500 7,000 9,500
6510 Medical exams 385 80 291 80
6540 Membership dues 1,295 1,345 825 1,345
6600 Other ‐ ‐ 104 ‐
6751 Telephone‐cellular 2,856 4,200 3,874 3,900
6752 Telephone‐local 14,841 14,340 18,115 5,100
6800 Travel & transportation 7,017 7,980 2,612 7,980
TOTAL CONTRACTUAL SERVICES 1,207,704 1,055,895 1,039,196 661,855 (394,040) ‐37.32%
7140 Conferences & meetings 856 1,000 676 1,000
7200 Equipment 6,002 17,800 7,313 15,100
7580 Software 10,654 2,000 1,710 2,000
7600 Subscriptions 814 4,840 2,791 4,840
7750 Supplies‐office 2,614 2,400 2,371 2,900
7810 Supplies‐specialty 2,943 15,000 6,363 20,000
TOTAL COMMODITIES 23,883 43,040 21,224 45,840 2,800 6.51%
DEPARTMENT TOTAL 1,793,241$ 1,723,931$ 1,724,889$ 1,262,202$ (461,729) ‐26.78%
COMMODITIES
$Chg/FY14 Budget %Chg/FY14 BudgetCODE/LINE ITEM, Department 06
PERSONNEL SERVICES
CONTRACTUAL SERVICES
63
Operations Department Justifications
5400 Insurance
Health insurance
The annual cost for the Authority at 80% is as follows by each type of coverage:
Employee = $5932.64/$4069.00
Employee + Spouse = $19,116.52/$17,450.00
Employee + Children = $10,010.32
Family = $15,277.80/$13,359.00
Dental insurance
The annual cost for dental is based on cobra rates as the program is self‐funded.
Employee = $361.20
Family = $981.60
Life insurance
Health 53,351
Dental 3,697
Life 2,301 Total employee insurance 59,349$
5450 Overtime
Estimated 450 hours of overtime for hourly employees. 11,222$
5451 Double time
Estimated 150 hours of overtime for hourly employees. 5,210$
5500 Payroll taxes
FICA ‐ 6.2% of base wage up to $117,000 23,662
Medicare ‐ 1.45% of base wage 5,534
State unemployment ‐ 4.85% of the first $12,960 4,932
Total payroll taxes 34,128$
5560 Pension contribution
IMRF pension fund ‐ 12.12% 36,937$
5600 Salaries
Includes 8 full time employees and interns 365,213$
5750 Training
FAA Part 139 1,000
TSA 1542/1544 1,000
Airport security coordinator 1,000
Advanced degrees ‐ staff (3) 8,500
Total training 11,500$
5800 Workers compensation insurance 25,392$
5900 Uniforms 3,106$
5901 Uniforms ‐ lost/damage/replacement 50$
PERSONNEL SERVICES
The Authority is partially self funded and estimates for this partial funding are incorporated into the annual costs noted
below.
Life and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life
at $.23/$1000 and AD&D at $.05/$1000.
64
Operations Department Justifications
5903 Uniforms ‐ protective clothing
Protective clothing allowance 2,400
Total other uniforms 2,400$
6140 Conferences & meetings
Annual tenant meetings for NPDES/Part 139/ TSA1542 3,000$
6161 ARFF contractual services
Contract with the City of Rockford for all ARFF services. 603,000$
6162 ARFF training
Annual live burn training, simulator & fuel & related expenses 7,500
Total ARFF training 7,500$
6163 LEO contractual services 15,000$
6322 Equip maint‐service contracts
Copy machine usage 210
Weather service 2,000
Telephone system 525
Total equipment maintenance‐service contracts 2,735$
6350 Equipment rental
Aircraft 1,500
Copy machine 1,215
Total equipment rental 2,715$
6480 Licenses, titles, inspections & background checks
Finger printing and security threat assessments 9,500
Total license, titles & inspections 9,500$
6510 Medical exams 80$
6540 Membership dues
AAAE 1,100
Aircraft rescue & fire 175
Great lakes chapter AAAE 70
Total membership dues 1,345$
6751 Telephone‐cellular 3,900$
6752 Telephone‐local
IP phone and internet services 4,500
Crash phone and tower 600
Total telephone‐local 5,100$
6800 Travel & transportation
Airport security coordinator 1,330
Security system training (travel, lodge, meals) 1,330
ASOS, wildlife and facility management 5,320
Total travel & transportation 7,980$
CONTRACTUAL SERVICES
Amounts include an estimate of $550/trip airfare, lodging of $185/night and M&I of $75/day for domestic.
65
Operations Department Justifications
7140 Conferences & meetings
Annual 139 table top 500
Meals for snow removal crews/special event crews 500
Total conferences & meetings 1,000$
7200 Equipment
Jump box, tool kit, finger print machine 3,600
Decelrometer 4,500
Handheld radios 2,000
Security system surveillance cameras 5,000
Total equipment 15,100$
7580 Software
ATTN Digicast training 2,000
Total software 2,000$
7600 Subscriptions
Internet ‐ Winnebago County 840
Flight explorer 4,000
Total subscriptions 4,840$
7750 Supplies‐office ‐ badges etc.
Badging supplies 1,400
Office supplies 1,500
Total supplies‐office ‐badges etc. 2,900$
7810 Supplies‐specialty
Life safety equipment 5,000
ARFF fire suppressant chemical 15,000
Total supplies ‐ speciality 20,000$
COMMODITIES
66
Marketing Department Summary The Marketing Department is responsible for ensuring the consistency of messaging to consumers and businesses regarding RFD’s high‐value, low cost, hassle‐free experience. This message is used to improve RFD’s standing in the markets that it operates. The markets that are targeted by RFD for continued development include air service for scheduled airlines, air charters, and air cargo. The Marketing Objectives are outlined below. Department initiatives to move the goals are listed below. Also noted are prior year results.
Performance appraisals90% of all new hires rate satisfactory or better in the f irst 6 mos. of employment
Employee turnoverTurnover rate at 8% or less annually.
Identify organizational w ide training priorities to improve job skills and know ledge.Create and implement training/ professional development program.Develop collaborative opportunities for promotion, education and recruitment through various businesses and community events. Go Global, Air Show . Ice Sculpting Contest (clean snow ), Cub Scouts, College/High School Interns.
OBJECTIVES MEASURES TARGETS INITIATIVES
Attract and retain a qualif ied and w orkforce.
Performance appraisals done annually and quarterly during f irst year of position.
Promote learning and grow th
Professional development and or training opportunities and participation.
Hours of training or professional development
Periodic customer satisfaction surveys. Establish baseline for improvement.
Provide exceptional and continuously improving customer service.
Customer satisfactionSurveys show meet or exceed customer satisfaction.
Excel as a community partner for the region.
Participation and collaboration in the community.
Continue and/or increase participation.
Goals and Objectives Enhance and grow air service at RFD and to effectively market RFD to the region. Think creatively and implement unique, yet effective marketing campaigns that consistently
engage the community and region.
Perform regular research and analysis of RFD activity and airline performance through surveying, polling, and industry statistical analysis.
Explore and create new partnerships that supplement our marketing plan to produce results and save costs for the airport.
Increase social media activity and connections by 25%
Prior Year Results Marketing results continue to show growth in usage of social media: MilesAhead, Facebook,
Twitter and YouTube.
5% growth in MilesAhead during our two week FlyRFD.com Suitcase Hunt encouraging use of FlyRFD.com.
Marketing was limited to those areas necessary as most routes are 93%+ full so more awareness to surrounding communities.
67
Marketing Department BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET
FYE10 FYE11 FYE12 FYE13 FYE14 FYE14 FYE15
PERSONNEL SERVICES
5400 Insurance 6,564$ 19,657$ 14,419$ 10,887$ 7,570$ 7,625$ ‐$ 5450 Overtime 1,440 194 ‐ ‐ ‐ ‐ ‐ 5500 Payroll taxes 6,178 6,757 4,782 3,410 2,568 3,550 ‐ 5560 Pension contribution 3,499 9,316 7,644 6,506 3,273 3,575 ‐ 5600 Salaries/wages 81,918 100,052 69,632 54,228 26,571 40,928 ‐ 5800 Workers compensation insurance 497 656 36 89 80 100 ‐ TOTAL PERSONNEL SERVICES 100,096 136,830 96,512 75,120 40,062 55,779 ‐ (40,062)$ ‐100.00%
CONTRACTUAL SERVICES
6021 Ad‐Television 139,053 103,736 42,183 69,289 70,000 39,794 60,000 6022 Ad‐Radio 97,779 101,289 24,582 95,778 80,000 48,406 60,000 6023 Ad‐Billboards 9,070 25,124 6,508 ‐ 30,000 130 30,000 6024 Ad‐Direct 15,826 11,899 1,611 ‐ 10,000 ‐ 10,000 6025 Ad‐Promotions/sponsorships/events 14,049 8,246 72,218 33,873 55,000 37,745 45,000 6026 Ad‐Print 173,551 227,144 98,874 66,007 25,000 22,024 35,000 6027 Ad‐Internet/web ‐ ‐ 55,673 31,680 30,000 1,000 25,000 6120 Charter program ‐ 5,310 ‐ ‐ ‐ ‐ ‐ 6121 MilesAhead program 32,057 86,676 25,769 9,248 ‐ 50 ‐ 6140 Conferences & meetings 101,660 117 2,627 ‐ ‐ ‐ ‐ 6145 Air service start up ‐ ‐ ‐ 1,675 267 ‐ 6150 Revenue guarantee 45,356 21,750 755,910 ‐ ‐ ‐ 6160 Consulting services 64,220 61,461 125,846 99,992 108,000 81,492 108,000 6510 Medical exams ‐ ‐ 45 ‐ ‐ ‐ ‐ 6540 Membership dues ‐ 295 520 280 ‐ ‐ ‐ 6600 Other ‐ 70 109 98 ‐ ‐ ‐ 6700 Postage 127 160 ‐ 1,631 ‐ ‐ ‐ 6730 Printing 16,008 5,459 6,505 9,158 16,250 12,344 13,250 6751 Telephone‐cellular ‐ 1,505 1,458 ‐ 425 ‐ ‐ 6752 Telephone‐local ‐ ‐ 2,288 719 188 228 ‐ 6753 Telephone‐long distance 202 156 102 446 ‐ ‐ ‐ 6800 Travel & transportation 188 45 1,243 113 250 622 ‐ TOTAL CONTRACTUAL SERVICES 709,146 660,443 1,224,070 419,988 425,113 244,101 386,250 (38,863)$ ‐9.14%
COMMODITIES
7140 Conferences & meetings 63 73 422 4,743 11,000 360 6,000 7200 Equipment 341 2,357 441 2,578 ‐ ‐ ‐ 7380 Other 120 ‐ 110 39 ‐ 30 ‐ 7600 Subscriptions ‐ 1,845 231 188 ‐ 282 ‐ 7750 Supplies‐office 180 60 14 32 ‐ ‐ ‐ 7796 Supplies‐promotional 11,446 6,288 12,074 8,357 9,000 9,860 9,000 TOTAL COMMODITIES 12,150 10,623 13,292 15,938 20,000 10,532 15,000 (5,000)$ ‐25.00%
DEPARTMENT TOTAL 821,391$ 807,896$ 1,333,875$ 511,046$ 485,175$ 310,412$ 401,250$ (83,925)$ ‐17.30%
CODE/LINE ITEM, Department 07$Chg/FY14 Budget %Chg/FY14 Budget
68
Marketing Budget Justifications
CONTRACTUAL SERVICES
Advertising
6021 Television 60,000$
6022 Radio 60,000$
6023 Billboards 30,000$
6024 Direct 10,000$
6025 Promotions/Sponsorships/Events 45,000$
6026 Print 35,000$
6027 Internet/Web 25,000$
6160 Consulting services
Ad design and production 10,000
Design and development ‐ annual report 7,500
Website update & production 15,000
Planning 2,500
Cargo promotional material design and website changes 2,500
Email blasting 7,000
Media Relations 54,000
Photography and video services 9,500
Total consulting services 108,000$
6730 Printing
Banners 2,250
Invitations/cards 1,000
RFD brochure reprint 2,500
Cargo promotional materials 2,000
Signage 1,500
Rack cards 1,500
Annual report 500
Other 2,000
Total printing 13,250$
COMMODITIES
7140 Conferences & meetings
In‐house luncheon meetings 1,000
Special events(not including Airfest) 5,000
Total conferences & meetings 6,000$
7796 Supplies‐promotional
Promotional items endorsing airport awareness and customer service.
Shirts, hats, pens, coasters, lanyards, coloring books, etc 7,000
Tenant gifts 2,000
Total supplies‐promotional 9,000$
Advertising associated with airline, charter and/or cargo service
69
Terminal Services Department Summary
The Terminal Services Department is responsible for the customer from the parking lot to the jetway. It is estimated that approximately 200,000 people will utilize the terminal in the next year. This not only increases the maintenance costs, but also the personnel cost associated with an exceptional traveling experience. Following are the objectives aligned with our Terminal Services. Department initiatives to move the goals are listed below. Also noted are prior year results.
RevenuesGrow th in diversif ied revenue sources.
Greater than 80% of revenues from sources other than UPS.
Monitor annual report, schedule of major revenue sources.
Performance appraisals90% of all new hires rate satisfactory or better in the f irst 6 mos. of employment
Employee turnoverTurnover rate at 8% or less annually.
Identify organizational w ide training priorities to improve job skills and know ledge.Create and implement training/ professional development program.Develop collaborative opportunities for promotion, education and recruitment through various businesses and community events. Go Global, Air Show . Ice Sculpting Contest (clean snow ), Cub Scouts, College/High School Interns.
Provide a w orld class safe and secure airport.
Workplace Safety5 or less OSHA recordable event annually.
OBJECTIVES MEASURES TARGETS INITIATIVES
Excel as a community partner for the region.
Participation and collaboration in the community.
Continue and/or increase participation.
Attract and retain a qualif ied and w orkforce.
Performance appraisals done annually and quarterly during f irst year of position.
Promote learning and grow th
Professional development and or training opportunities and participation.
Hours of training or professional development
Protect and enhance the environment.
Energy/Fuel Savings3% reduction in energy usage per year.
Utilization and expansion of conservation and alternative energy opportunities.
Periodic customer satisfaction surveys. Establish baseline for improvement.
Provide exceptional and continuously improving customer service.
Customer satisfactionSurveys show meet or exceed customer satisfaction.
Goals and Objectives To provide safe and efficient facilities for the tenants and to include the terminals used by citizens and the traveling public within our region. Quality service to our airport customers will be at the top of our plan. Maintain and develop the airport, in an environmentally sound manner, as a vital part of the local, state, national transportation network. To assist and administer all aspects of the airport efficiently and to be in compliance with all local, state and federal laws and policies regarding the airport and the surrounding area.
70
Terminal Services Department Summary(con’t)
Working together to provide a plan to help maintain a positive customer service experience
throughout the entire terminal complex’s, from the entrance road and parking lots to the aircraft gates.
Maintain and improve tenant relations by reintroducing monthly meetings with all terminal tenants to include the Terminal Services Supervisor.
Continued beautification enhancements, to include painting, brighter lighting offerings to all terminal spaces. Additional artwork, just an overhaul of the general aesthetics.
As part of our monthly meetings, work with TSA administration to enhance discussions on how we provide professional security improvements during flight times.
Work with the new Food and Beverage Concessionaire to improve services and projects for the passengers. To include a much needed awareness plan for our traveling public. Moving away from the traditional stand at the counter/bar routine to a more engaging approach.
Continued efforts to investigate new revenue opportunities for the terminal, i.e. advertising and local region company awareness representation.
Sustain a viable part on the terminal expansion team.
Work to better understand the Aircraft lead in lines, stop bars, Jet Bridge stow boxes and Ground Support Equipment (GSE) parking areas with the assistance of our Operations division. With the understanding of such we will work together to correct any deficiency on the terminal ramp.
Work with Facilities and Maintenance to revisit the seal coating and restriping of the terminal parking lots to enhance the appearance of the lots and to prolong the life of the asphalt contained within.
71
Terminal Services Department BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET
FYE10 FYE11 FYE12 FYE13 FYE14 FYE14 FYE14
5400 Insurance 47,871$ 50,641$ 50,718$ 23,686$ 25,570$ 29,722$ 38,050$
5450 Overtime 19,610 19,654 14,127 18,181 10,029 21,060 12,365
5451 Double time 11,407 16,214 11,646 9,090 9,202 12,182 11,658
5500 Payroll taxes 19,687 18,939 15,457 9,738 11,942 11,630 16,114
5560 Pension contribution 17,670 27,304 22,045 15,458 16,645 17,462 21,622
5600 Salaries/wages 232,295 225,837 192,432 105,199 115,876 136,397 154,378
5750 Training 169 2,120 ‐ ‐ ‐ 175 ‐
5800 Workers compensation insurance 27,309 23,722 16,804 10,224 10,255 10,734 13,673
5900 Uniforms 1,034 1,144 957 1,589 1,357 1,363 1,775
5901 Uniforms‐lost,damaged,replaced 22 65 49 ‐ 422 33 422
5903 Uniforms‐other 465 656 676 575 600 404 600
TOTAL PERSONNEL SERVICES 377,541 386,294 324,910 193,739 201,897 241,162 270,656 68,759$ 34.06%
6100 Building repair 1,754 16,774 18,504 37,621 30,000 16,677 20,000
6140 Conferences & meetings 1,982 75 32 ‐ ‐ ‐ ‐
6201 Energy‐electric 184,546 176,337 144,487 101,207 118,000 94,786 110,000
6202 Energy‐natural gas 20,734 19,762 13,605 16,064 12,500 22,384 17,500
6320 Equipment maintenance ‐ ‐ ‐ ‐ ‐ 402 ‐
6321 Equip maint‐repairs/services 44,756 52,561 32,902 42,096 66,785 32,931 66,785
6322 Equip maint‐service contracts 37,412 41,068 40,027 44,850 64,456 48,253 64,456
6350 Equipment rental 940 4,022 1,145 6,036 14,800 10,666 12,500
6410 Landscaping 392 5,181 5,170 15,552 12,500 5,830 12,500
6480 Licenses, titles & inspections ‐ ‐ ‐ ‐ ‐ 895 ‐
6510 Medical exams 304 5 791 72 500 187 500
6600 Other ‐ 101 504 35 1,580 109 1,580
6751 Telephone‐cellular 3,240 3,610 3,079 2,049 2,250 959 1,800
6752 Telephone‐local 7,083 11,131 16,343 11,794 13,580 12,712 14,500
6753 Telephone‐long distance ‐ 21 ‐ ‐ ‐ 5 ‐
6800 Travel & transportation ‐ 1,555 196 153 ‐ ‐ ‐
6800 Customer care/customer service 1,639 117 1,364 ‐ ‐ ‐ ‐
6850 Utilities 4,513 4,777 5,293 5,648 5,800 7,967 5,800
6950 Waste removal 111,193 103,625 84,072 43,032 51,000 30,296 51,000
TOTAL CONTRACTUAL SERVICES 420,489 440,721 367,515 326,209 393,751 285,060 378,921 (14,830)$ ‐3.77%
7100 Building repair 50,830 37,194 14,434 17,715 20,000 5,690 18,000
7140 Conferences & meetings 872 830 923 1,047 1,400 1,098 2,400
7200 Equipment 5,472 11,543 13,458 5,286 10,900 10,177 19,600
7300 Landscaping 7,303 10,022 12,685 1,981 3,500 1,676 3,500
7380 Other 242 2,174 1,076 1,256 2,000 ‐ 2,000
7540 Signage 2,053 748 3,666 131 3,000 307 3,000
7580 Software 4,473 70 ‐ ‐ ‐ ‐ ‐
7600 Subscriptions 385 10,179 9,226 842 1,355 1,156 1,355
7660 Supplies‐janitorial 14,961 7,841 18,818 16,437 17,400 20,355 17,400
7750 Supplies‐office 1,782 2,160 3,203 441 ‐ 980 ‐
7780 Supplies‐other 4,953 6,164 498 18 1,000 1,074 9,000
TOTAL COMMODITIES 93,326 88,925 77,988 45,154 60,555 42,512 76,255 15,700$ 25.93%
DEPARTMENT TOTAL 891,356$ 915,941$ 770,414$ 565,101$ 656,203$ 568,735$ 725,832$ 69,629$ 10.61%
%Chg/FY14 BudgetCODE/LINE ITEM, Department 08
PERSONNEL SERVICES
CONTRACTUAL SERVICES
COMMODITIES
$Chg/FY14 Budget
72
Terminal Services Budget Justifications
PERSONNEL SERVICES
5400 Insurance
The annual cost for the Authority at 80% is as follows by each type of coverage:
Employee = $5932.64/$4069.00
Employee + Spouse = $19,116.52/$17,450.00
Employee + Children = $10,010.32
Family = $15,277.80/$13,359.00
Dental insurance
The annual cost for dental is based on cobra rates as the program is self‐funded.
Employee = $361.20
Family = $981.60
Life insurance
Health 34,377
Dental 2,634
Life 1,039 Total employee insurance 38,050$
5450 Overtime
Estimated 445 hours of overtime for hourly employees. 12,365$
5451 Double time
Estimated 316 hours of overtime for hourly employees. 11,658$
5500 Payroll taxes
FICA ‐ 6.2% of base wage up to $117,000 11,061
Medicare ‐ 1.45% of base wage 2,587
State unemployment ‐ 4.85% of the first $12,960 2,466
Total payroll taxes 16,114$
5560 Pension contribution
IMRF pension fund ‐ 12.12% 21,622$
5600 Salaries
4 full time employees 154,378
Total salaries 154,378$
5800 Workers compensation insurance 13,673$
5900 Uniforms 1,775$
5901 Uniforms ‐ lost/damage/replacement 422$
5903 Uniforms ‐ protective clothing 600$
The Authority is partially self funded and estimates for this partial funding are incorporated into the annual costs noted
below.
Life and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life at
$.23/$1000 and AD&D at $.05/$1000.
73
Terminal Services Budget Justifications
CONTRACTUAL SERVICES
6100 Building repair
Repair and painting in terminal 20,000$
6201 Energy‐electric ‐ terminal 110,000$
6202 Energy‐natural gas ‐ terminal 17,500$
6321 Equip maint‐repairs/services
HVAC 12,500
Installation/Replacement of field components w/HVAC 14,000
Jet Bridges 4,500
Air Duct Cleaning 4,635
Refurbish luggage carts 5,000
Door repair 18,200
Quarterly terminal window cleaning 6,000
Other 1,950 Total equipment maintenance ‐ repairs/service 66,785$
6322 Equip maint‐service contracts
Escalator maintenance contract 11,354
Elevator 4,000
Jetbridge preventive maintenance contract 7,800
Water softener service 3,350
Grease trap cleaning 2,000
Common use system maintenance contract 18,000
Security system 3,800
Pest control 1,260
Telephone system 1,050
Automatic Door Entrance maintenance contract 3,528
Sanitizer service 2,000
Wheel chair maintenance 350
Satelite TV/Radio 1,500
Carpet Cleaning (2 times annually) 3,964
Other 500
Total equipment maintenance‐service contracts 64,456$
6350 Equipment rental
High lift/boom 2,000
Wheel chair rental 8,500
Other 2,000
Total equipment rental 12,500$
6410 Landscaping
General landscaping needs 8,500
Terminal fertilizing and broadleaf control 4,000
Total landscaping 12,500$
6510 Medical exams 500$
6600 Other ‐ Contractual services not itemized in other accounts. 1,580$
6751 Telephone‐cellular 1,800$
74
Terminal Services Budget Justifications
6752 Telephone‐local
IP telephone and internet service 12,000
Back up service 2,500
Total telephone ‐ local 14,500$
6850 Utilities
Water 2,900
Sewer 2,900
Total utilities 5,800$
6950 Waste removal
Debris and extra dumpster pick‐ups 5,000
International rubbish removal 45,000
Other ‐ line cleaning 1,000
Total waste removal 51,000$
7100 Building repairMaterials used in connection with the maintenance of terminal building areas not covered by tenant
leases. 18,000$
7140 Conferences & meetings
Water rental and delivery 900
Miscellaneous 1,500
Total conferences & meetings 2,400$
7200 Equipment
Power tools and equipment 2,500
Hand tools, snow shovels, etc 1,400
Walk behind vacuum 3,500
Event tables (20 ‐ 8ft) and chairs (72) with storage caddies 6,000
Fire extinguisher and cabinets 1,000
Scaffold tower 1,700
Camera 500
Other 3,000
Total equipment 19,600$
7300 LandscapingSupplies associated with turf maintenance of terminal area. 3,500$
7380 Other ‐ Costs of commodities not itemized in other accounts. 2,000$
7540 SignageRental car return reflective signage 3,000$
7600 Subscriptions
TV Service‐ dish 1,100
Internet subscription‐ Winn Co. 255
Total subscriptions 1,355$
COMMODITIES
75
Terminal Services Budget Justifications
7660 Supplies‐janitorial
Consumable products 10,500
Cleaners 3,100
Strippers/waxes 600
Mop heads/brushes/brooms/bags/etc 3,200
Total supplies‐janitorial 17,400$
7780 Supplies‐ Other
Christmas terminal decorations, driveway and inside ceiling 9,000
Total supplies‐janitorial 9,000$
76
AirFest Department Summary The AirFest Department is responsible for the overall development and implementation of one of the Midwest’s largest events. AirFest is considered a promotional event for the airport, with the added benefit of supporting the community’s quality of life with another family‐oriented event for the region. The department oversees and implements the operational, promotional, and financial aspects of Rockford AirFest. Although a component of the greater Airport marketing mix, it was necessary to separately identify the related costs of the event from the Air Service Marketing. Following is the objective for the AirFest. Department initiatives to move the goals are listed below. Also noted are prior year results.
Goals and Objectives Provide a high quality, high value family‐friendly event for the regional community and a marketing opportunity to promote RFD in the most cost effective manner. Produce an event that resonates with the region and allows for patrons to experience RFD and
results in a breakeven or better financial position.
Operate an event that is safe for the performers and patrons.
Establish relationships with local and regional businesses that will benefit RFD.
Raise awareness in the airshow community to facilitate easier attraction of both military and civilian performers for future shows (received high marks by recruiters and performers).
Continue to improve the traffic flow and parking by eliminating bottlenecks and decreasing the slowdowns (no delays during show).
Creating award‐winning marketing communication collateral and advertising (two more awards in December at International Council Air Shows (ICAS) conference).
Continue to grow sponsorship by 25% each year.
Attract more national sponsorships.
Have all fixed costs paid prior to gate opening.
Increase knowledge of consumer through survey engagement.
Develop collaborative opportunities for promotion, education and recruitment through various businesses and community events. Go Global, Air Show . Ice Sculpting Contest (clean snow ), Cub Scouts, College/High School Interns.
INITIATIVES
Excel as a community partner for the region.
Participation and collaboration in the community.
Continue and/or increase participation.
OBJECTIVES MEASURES TARGETS
77
AirFest Department BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET
FYE10 FYE11 FYE12 FYE13 FYE14 FYE14 FYE15
5400 Insurance 15,804$ 12,227$ 12,100$ 12,550$ ‐$ ‐$ 7,602$
5450 Overtime 4,020 12,663 27,397 29,331 ‐ ‐ 16,034
5451 Double time ‐ 5,104 12,000 12,051 ‐ ‐ 10,637
5500 Payroll taxes 6,354 7,745 7,832 7,941 ‐ 225 8,587
5560 Pension contribution 4,283 7,901 7,801 8,037 ‐ ‐ 8,702
5700 Salaries/wages 87,099 93,254 95,823 92,125 ‐ 3,043 71,204
5800 Workers compensation insurance 431 3,674 2,000 2,417 ‐ ‐ 2,276
TOTAL PERSONNEL SERVICES 117,991 142,569 164,953 164,451 ‐ 3,268 125,042 (39,409)$ ‐23.96%
6021 Ad‐Television 7,550 10,900 7,188 ‐ ‐ ‐ ‐
6022 Ad‐Radio 7,450 8,243 12,467 ‐ ‐ ‐ ‐
6023 Ad‐Billboards 4,850 ‐ 1,000 ‐ ‐ ‐ ‐
6025 Ad‐Promotions 725 500 473 ‐ ‐ ‐ ‐
6026 Ad‐Print 20,444 2,773 10,883 ‐ ‐ ‐ ‐
6140 Conferences & meetings 869 510 12 2,194 ‐ ‐ ‐
6160 Consulting services 8,793 13,033 10,290 23 ‐ ‐ ‐
6165 Airshow contractual 201,189 207,437 207,763 237,376 ‐ ‐ 219,500
6170 Airshow lodging 43,362 41,144 48,447 60,502 ‐ ‐ 39,000
6175 Airshow rental services 52,149 55,121 51,856 57,539 ‐ ‐ 51,830
6185 Airshow food and beverages 57,358 60,170 55,885 61,067 ‐ ‐ 61,150
6190 Airshow transportation 32,168 49,074 41,031 47,503 ‐ ‐ 43,450
6300 Engineering services 5,763 10,337 6,661 2,470 ‐ ‐ 2,500
6322 Equip maint‐service contracts 2,816 4,200 660 ‐ ‐ ‐ ‐
6350 Equipment rental 2,731 8,805 4,644 14,839 ‐ ‐ 4,800
6400 Insurance 9,334 9,057 9,057 10,156 ‐ ‐ 12,000
6480 Licenses, titles & inspections 547 365 440 415 ‐ ‐ 1,175
6600 Other 6,551 8,328 7,684 4,330 ‐ ‐ 500
6700 Postage 174 11 ‐ ‐ ‐ ‐ ‐
6730 Printing 25,266 34,810 26,259 26,865 ‐ ‐ 11,000
6751 Telephone‐cellular 1,777 2,014 1,588 2,858 ‐ ‐ 2,800
6752 Telephone‐local 366 1,038 357 1,390 ‐ ‐ 1,000
6800 Travel & transportation 1,639 1,658 713 2,446 ‐ ‐ 200
6950 Waste removal ‐ 145 ‐ ‐ ‐ ‐ ‐
TOTAL CONTRACTUAL SERVICES 493,871 529,672 505,358 532,298 ‐ ‐ 450,905 (81,393)$ ‐15.29%
7271 Fuel‐diesel ‐ 148 194 ‐ ‐ ‐ ‐
7272 Fuel‐unleaded 56 361 1,329 ‐ ‐ ‐ ‐
7273 Fuel‐other 24,295 10,083 36,563 39,708 ‐ ‐ 39,700
7300 Landscaping 162 85 110 1,216 ‐ ‐ 1,000
7540 Signage 8,250 9,480 5,554 4,081 ‐ ‐ 4,000
7600 Subscriptions 188 ‐ 13 500
7660 Supplies‐janitorial 3,057 1,799 3,330 3,708 ‐ ‐ 3,500
7750 Supplies‐office 1,446 1,637 1,374 418 ‐ ‐ 500
7780 Supplies‐other 2,581 4,418 6,577 3,767 ‐ ‐ 2,700
7782 Supplies‐hardware 3,123 1,691 1,377 1,906 ‐ ‐ 1,700
7796 Supplies‐promotional ‐ Airshow 23,871 29,442 12,279 15,618 ‐ ‐ 24,600
7902 Maint‐equipment ‐ ‐ 125 ‐ ‐ ‐ ‐
TOTAL COMMODITIES 66,841 59,144 68,813 70,610 ‐ 13 78,200 7,590$ 10.75%
DEPARTMENT TOTAL 678,704$ 731,385$ 739,124$ 767,358$ ‐$ 3,280$ 654,147$ (113,211)$ ‐14.75%
%Chg/FY13
ActualCODE/LINE ITEM, Department 09
PERSONNEL SERVICES
CONTRACTUAL SERVICES
COMMODITIES
$Chg/FY13
Actual
78
AirFest Budget Justifications
PERSONNEL SERVICES
Dept 04 ‐ 1.9%
Dept 05 ‐ 3.3%
Dept 06 ‐ 2.7%
Dept 08 ‐ 2.7%
Dept 10 ‐ 1.9%
Dept 11 ‐ 1.9%
5400 Insurance 7,602$
5450 Overtime
Estimated 575 hours of overtime for hourly employees. 16,034$
5451 Double time
Estimated 184 hours of overtime for hourly employees. 10,637$
5500 Payroll taxes
FICA ‐ 6.2% of base wage up to $117,000 6,068
Medicare ‐ 1.45% of base wage 1,419
State unemployment ‐ 4.85% of the first $12,960 1,100
Total payroll taxes 8,587$
5560 Pension contribution
IMRF pension fund ‐ 12.12% 8,702$
5600 Salaries and wages 71,204
Allocated staff time and 2 part‐time temporary staff 71,204$
5800 Workers compensation insurance 2,276$
CONTRACTUAL SERVICES
6165 Airshow contractual
AirSho Inc ‐ Rudy Malnati 41,000
Performers fee 112,000
AirSho Inc ‐ Support team 25,000
Contracted security police 25,000
Not‐for Profit Support for parking ‐ donation for 700+ hours 6,000
UPS Parking lot 2,000
Air Force Volunteers 1,000
Contract EMS 7,500
Total airshow contractual 219,500$
6170 Airshow lodging
Performers 39,000
Total airshow lodging 39,000$
6175 Airshow rental services
Portable toilets 9,500
Fencing ‐ bicycle 11,830
Tents/weights/tables/chairs 30,000
Tables/Chairs Training 500
Total airshow rental services 51,830$
Personnel services associated with AirFest are based on a percentage for all other departments as outlined below with the
addition of funds to support temporary administrative help.
79
AirFest Budget Justifications6185 Airshow food and beverages
Sponsor catering
Captains club 14,000
Aviators club 12,000
Volunteers 6,300
Host/Staff/VIP 15,000
Other 3,000
Performers 7,500
Ice 3,350
Total airshow food and beverages 61,150$
6190 Airshow transportation
Cars/vans 33,000
Golf carts 9,500
Airfare 950
Total airshow transportation 43,450$
6300 Engineering services
Layout drawings 2,500
Total engineering services 2,500$
6350 Equipment rental
Radios 1,500
Stage and sound system 3,300
Total equipment rental 4,800$
6400 Insurance
Airshow 12,000
Total insurance 12,000$
6480 Licenses, titles & inspections
Music licensing fee 760
City of Rockford event application 390
Illinois liquor control license 25
Total licenses, titles & inspections 1,175$
6600 Other ‐ Contractual services not itemized in other accounts. 500$
6730 Printing
Admission tickets 2,500
Copy machines usage 2,500
Volunteer and staff credentials 1,000
Banners, flyers and posters 5,000
Total printing 11,000$
6751 Telephone‐cellular 2,800$
6752 Telephone‐local 1,000$
6800 Travel & transportation (airfare/hotel/per diem)
Staff conferences and training
Mileage 200
Total travel & transportation 200$
80
AirFest Budget JustificationsCOMMODITIES
7273 Fuel‐other
Pyro fuel 4,800
Propane ‐ forklifts 400
Aircraft fuel 23,000
Smoke oil 11,500
Total fuel ‐ other 39,700$
7300 LandscapingMulch and supplies for grounds 1,000$
7540 Signage 4,000$
7600 Subscriptions
Internet ‐ Winnebago County 500
7660 Supplies‐janitorial
Various supplies 3,500
Total supplies‐janitorial 3,500$
7750 Supplies‐office
Misc supplies 500
Total supplies‐office 500$
7780 Supplies ‐ other
Table covers 1,200
Other 1,500
Total supplies‐other 2,700$
7782 Supplies‐hardware (expendable supplies) 1,700$
7796 Supplies‐promotional
Volunteer T‐shirts 3,900
Rudy's Team shirts 1,200
Staff and commissioner's shirts 2,500
Hats and shirts 12,000
Gifts for volunteers souvenir sale merchandise 5,000
Total supplies ‐ promotional 24,600$
81
Business Development Department Summary Business and Cargo development are continuing to move forward with more awareness in the global community, which has led to test flights. We will continue to market to the airlines, but add more specific targeted marketing towards the Freight Forwarders both locally, as well as abroad. This process will be a push‐pull process since each group can affect the overall decision to move. Because of the importance of meeting face‐to‐face, Staff will be traveling a considerable amount this coming year.
RevenuesGrow th in diversif ied revenue sources.
Greater than 80% of revenues from sources other than UPS.
Monitor annual report, schedule of major revenue sources.
Operations Ranking: Top 20Increase sales calls, public relations and global participation at tradeshow s.
Enplaned/Deplaned cargo Operations increase: 20% Develop financial incentives to grow , and diversify domestic and international cargo activity.
Landed aircraft w eightEnplanements/Deplanements increase: 27%
Airline diversif ication Landed w eight increase: 27%
Airlines/International New airline operators: 3
International landed w eight: 15% increase
Expand cargo service to increase economic impact and viability.
OBJECTIVES MEASURES TARGETS INITIATIVES
Goals and Objectives Continue to develop and grow awareness of the value of using the airport for international cargo activity and any other support businesses to enhance the value.
International Air Cargo Forum, Seoul, Korea, Oct 7‐9th 2014
Air Cargo 2015 New Orleans, March 1‐3rd 2015
Air Cargo, Europe, May 4, 6‐8 2015, Munich
CNS Partnership Conference – May 2015 date and location not yet set
82
Business Development Department Budget
ACTUAL BUDGET ESTIMATE BUDGET
FYE13 FYE14 FYE14 FYE15
PERSONNEL SERVICES
5400 Insurance 11,964$ 12,226$ 14,672$ 11,457$ 5500 Payroll taxes 8,663 9,432 8,816 9,277 5560 Pension contribution 13,956 15,693 15,331 14,700 5600 Salaries/wages 121,010 127,379 125,199 121,291 5800 Workers compensation insurance 341 382 356 364
TOTAL PERSONNEL SERVICES 155,934 165,112 164,374 157,089 (8,023) ‐4.86%
CONTRACTUAL SERVICES
6140 Conferences & meetings 12,489 13,500 13,853 9,000 6540 Membership dues 3,508 4,000 4,554 4,000 6600 Other ‐ ‐ 15 ‐ 6670 Permits & testing ‐ ‐ 1,021 ‐ 6751 Telephone‐cellular 1,267 1,320 1,217 1,260 6752 Telephone‐local 447 450 617 450 6800 Travel & transportation 25,224 21,100 14,276 21,100
TOTAL CONTRACTUAL SERVICES 42,937 40,370 35,552 35,810 (4,560) ‐11.30%
COMMODITIES
7140 Conferences & meetings 2,562 4,000 112 4,000 7200 Equipment ‐ 1,650 447 1,650 7600 Subscriptions 1,200 335 1,158 335 7796 Supplies‐promotional 2,400 4,000 ‐ 4,000
TOTAL COMMODITIES 6,161 9,985 1,718 9,985 ‐ 0.00%
DEPARTMENT TOTAL 205,032$ 215,467$ 201,644$ 202,884$ (12,583) ‐5.84%
$Chg/FY14
Budget
%Chg/FY14
BudgetCODE/LINE ITEM, Department 10
83
Business Development Budget Justifications
PERSONNEL SERVICES
5400 Insurance
The annual cost for the Authority at 80% is as follows by each type of coverage:
Employee = $5932.64/$4069.00
Employee + Spouse = $19,116.52/$17,450.00
Employee + Children = $10,010.32
Family = $15,277.80/$13,359.00
Dental insurance
The annual cost for dental is based on cobra rates as the program is self‐funded.
Employee = $361.20
Family = $981.60
Life insurance
Health 9,818
Dental 963
Life 677 Total employee insurance 11,457$
5500 Payroll Taxes
FICA ‐ 6.2% of base wage up to $117,000 6,902
Medicare ‐ 1.45% of base wage 1,759
State unemployment ‐ 4.85% of the first $12,960 616
Total payroll taxes 9,277$
5560 Pension contribution
IMRF pension fund ‐ 12.12% 14,700$
5600 Salaries
Includes 1 full time employee 121,291$
5800 Workers compensation insurance 364$
CONTRACTUAL SERVICES
6140 Conferences & meetings
CNS Partnership conference 1,500
Air Cargo Europe 1,500
Paris Air Show 1,500
NBAA 1,500
Other 3,000
Total conferences & meetings 9,000$
6540 Membership dues
TIACA ‐ Trustee
TIACA, IACAC,CNS, NBAA, IATA 4,000
Total membership dues 4,000$
6751 Telephone‐cellular 1,260$
6752 Telephone‐local/h‐s internet 450$
The Authority is partially self funded and estimates for this partial funding are incorporated into the annual costs noted
below.
Life and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life
at $.23/$1000 and AD&D at $.05/$1000.
84
Business Development Budget Justifications
6800 Travel & transportation
Air Cargo Europe(4n) 4,500
Paris Air Show(7n) 5,700
Business Airport World Expo ‐ Booth ‐ London (5n) 4,900
Mileage 6,000
Total travel & transportation 21,100$
COMMODITIES
7140 Conferences & meetings
Cargo handler/Freight forwarder meetings 4,000
Total conferences & meetings 4,000$
7200 Equipment ‐ computer 1,650$
7600 Subscriptions
Cargo publications 250
Internet ‐ Winnebago County 85
Total subscriptions 335$
7796 Supplies‐promotional
Promotional items endorsing airport awareness and customer service.
Shirts, hats, pens, coasters, lanyards, coloring books, etc 2,000
Client gifts 2,000
Total supplies‐promotional 4,000$
Amounts include an estimate of $550/trip airfare, lodging of $185/night and M&I of $75/day for domestic and
$2900/airfare, lodging $300 and M&I of $100/day for international.
85
Air Service Development Department Summary Air Service Development function is to create passenger service opportunities to grow and expand existing and new service for domestically and internationally.
RevenuesGrow th in diversif ied revenue sources.
Greater than 80% of revenues from sources other than UPS.
Monitor annual report, schedule of major revenue sources.
Destinations Ranking: Top 200
Develop incentives and/or marketing support to encourage existing and new airline partners to establish new destinations or substantially expand current service.
Passengers New destinations: 7Establish one-off daily f lying to multiple new top 30 destinations based on the market service area.
Regional Diversif ication Passenger increase: 100%Establish international and domestic seasonal f lights in support of the travel industry.
External usage: 70% increase outside Winnebago County
Create/maintain occasional
International traff ic: 50% increase
Charter f lying to highly desired destinations as mechanism to promote RFD to industry and consumers.
OBJECTIVES MEASURES TARGETS INITIATIVES
Periodic customer satisfaction surveys. Establish baseline for improvement.
Provide exceptional and continuously improving customer service.
Customer satisfactionSurveys show meet or exceed customer satisfaction.
Expand passenger service to respond to regional demand.
Goals and Objectives Engage consultants to assist in development of air service.
Implement service to one additional Top 10 Destinations.
Engage opportunities with Travel Agents and Cruise Lines for peak travel periods.
Implement service to one additional international destination.
Enhance relationships with existing carriers to grow existing service.
Utilize existing $500,000 Small Community Air Service Development Grant to establish new domestic service.
Increase communication with existing and potential airlines including headquarters visits to ensure RFD’s message is communicated.
Conduct periodic passenger surveys to analyze ways to improve the passenger experience.
Maintain and enhance customer service and community outreach by hosting meetings and events.
Track and respond to customer comments and questions within 24 hours of receipt.
Enhance and grow the volunteer program
86
Air Service Development Department Summary(con’t)
Prior Year Results
Implemented a volunteer program to assist the flying public
Conducted passenger surveys during peak month to identify traveler origins and reasons for flying from RFD.
Added one new international destination to Puerta Vallarta, Mexico
Added new domestic service to Punta Gorda, FL with Allegiant.
Over two dozen tours were conducted with various schools, clubs, and non‐profit groups informing them of the benefits of using RFD.
There were many events at the terminal during the year for economic development, chamber, the governor, regional and state legislators, and local non‐profit groups.
All customer calls are tracked and returned by the next business day. The log book history is maintained by the Passenger Services Supervisor. These calls help improve the frequently asked questions included on our website and used for our receptionist and after hours answering service.
87
Air Service Development Department Budget
ACTUAL BUDGET ESTIMATE BUDGET
FYE13 FYE14 FYE14 FYE15
PERSONNEL SERVICES
5400 Insurance 30,294$ 12,816$ 26,885$ 21,066$ 5500 Payroll taxes 11,626 7,865 8,922 9,793 5560 Pension contribution 14,394 9,801 13,451 13,562 5600 Salaries/wages 162,513 85,556 123,089 111,897 5800 Workers compensation insurance 4,508 257 256 336
TOTAL PERSONNEL SERVICES 223,335 116,295 172,603 156,653 40,359 34.70%
CONTRACTUAL SERVICES
6140 Conferences & meetings 7,076 7,500 12,493 9,725 6150 Revenue guarantee 168,950 45,000 104,770 35,000 6160 Consulting services 7,500 10,000 27,565 25,000 6510 Medical exams 5,214 590 1,200 6540 Membership dues 310 310 275 310 6600 Other ‐ ‐ 30 ‐ 6751 Telephone‐cellular 2,132 988 1,112 1,091 6752 Telephone‐local 1,566 700 1,209 1,680 6800 Travel & transportation 12,681 ‐ ‐ 16,450 6806 Customer care/customer service 1,299 1,500 378 2,000
TOTAL CONTRACTUAL SERVICES 206,728 65,998 148,421 92,456 26,458 40.09%
COMMODITIES
7140 Conferences & meetings 5,618 8,500 4,047 8,500 7200 Equipment 1,369 5,600 1,810 1,990 7600 Subscriptions 1,379 3,095 3,380 4,595 7540 Signage 4,186 ‐ ‐ ‐ 7750 Supplies‐office 1,315 ‐ 740 ‐ 7780 Supplies‐other 3,676 5,500 1,506 5,500
TOTAL COMMODITIES 17,543 22,695 11,483 20,585 (2,110) ‐9.30%
DEPARTMENT TOTAL 447,606$ 204,988$ 332,508$ 269,694$ 64,707 31.57%
$Chg/FY14
Budget
%Chg/FY14
BudgetCODE/LINE ITEM, Department 11
88
Air Service Development Budget Justifications
PERSONNEL SERVICES
5400 Insurance
The annual cost for the Authority at 80% is as follows by each type of coverage:
Employee = $5932.64/$4069.00
Employee + Spouse = $19,116.52/$17,450.00
Employee + Children = $10,010.32
Family = $15,277.80/$13,359.00
Dental insurance
The annual cost for dental is based on cobra rates as the program is self‐funded.
Employee = $361.20
Family = $981.60
Life insurance
Health 18,975
Dental 1,317
Life 774 Total employee insurance 21,066$
5500 Payroll Taxes
FICA ‐ 6.2% of base wage up to $117,000 6,938
Medicare ‐ 1.45% of base wage 1,623
State unemployment ‐ 4.85% of the first $12,960 1,233
Total payroll taxes 9,793$
5560 Pension contribution
IMRF pension fund ‐ 12.12% 13,562$
5600 Salaries
Includes 2 full time employees 111,897$
5800 Workers compensation insurance 336$
CONTRACTUAL SERVICES
6140 Conferences & meetings
Routes Americas 2,500
World Routes 2015 ‐ Durban 4,000
National Air Service Conference 600
Great Lakes Annual Conference 600
Allegiant air service planning conference 175
AAAE Annual 800
Aviation Roundtable 750
Other 300
Total conferences & meetings 9,725$
6150 Revenue guarantee
Apple ‐ Puerta Vallarta 35,000$
Total revenue guarantee 35,000$
The Authority is partially self funded and estimates for this partial funding are incorporated into the annual costs noted
below.
Life and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life
at $.22/$1000 and AD&D at $.05/$1000.
89
Air Service Development Budget Justifications
6160 Consulting services
Air Service research/planning 10,000
Chicago Booth Rental/Design 15,000
Total consulting services 25,000$
6510 Medical exams ‐ Volunteer program 1,200$
6540 Membership dues
American Association of Airport Executives (AAAE) 275
Great Lakes AAAE 35
Total membership dues 310$
6751 Telephone‐cellular 1,091$
6752 Telephone‐local/h‐s internet 1,680$
6800 Travel & transportation
World ROUTES Development Forum (7n) 5,700
ROUTES Americas Air Service Development Forum (4n) 4,500
GLCAAAE/National Air Service Conference (3n) 3,000
GLCAAAE Annual Conference (3n) 750
Allegiant air service meeting (3n) 1,500
Other 1,000
Total travel & transportation 16,450$
6806 Customer care/customer service
Amounts for issues for passengers 2,000$
COMMODITIES
7140 Conferences & meetings
Travel agent events ‐ Apple 8,000
Miscellaneous 500
Total conferences & meetings 8,500$
7200 Equipment
Computer 1,990
Total equipment 1,990$
7600 Subscriptions
Routes Exchange 3,000
Sixel Data 1,000
Internet ‐ Winnebago County 595
Total subscriptions 4,595$
7780 Supplies ‐ other
Volunteer program supplies and recognition 5,000
Other 500
Total supplies‐other 5,500$
Amounts include an estimate of $550/trip airfare, lodging of $185/night and M&I of $75/day for domestic and
$2900/airfare, lodging $300 and M&I of $100/day for international.
90
Non‐Operating Revenues and Expenses Budget
ACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET
CODE/LINE ITEM FYE10 FYE11 FYE12 FYE13 FYE14 FYE14 FYE15
NON‐OPERATING REVENUE
9000 Annexation agreement 139,906$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$
9100 Interest income 127,896 89,321 33,880 19,318 25,000 16,183 20,000
9200 Taxes‐property (operating levy) 3,236,459 3,277,669 3,346,076 3,122,854 3,138,452 3,123,289 3,100,000
9205 Property tax interest (operating levy) 665 ‐ ‐ ‐ 2,000 ‐ 2,000
9250 Taxes‐corporate replacement 523,707 582,125 525,140 520,646 523,449 595,828 602,222
9280 AIP Funds Reimbursement 2,926,027 2,248,144 4,565,843 1,636,679 950,000 950,000 950,000
9270 Passenger facility charges 341,985 356,332 522,905 474,257 511,991 526,343 559,926
9260 Funds from auctioned equipment 1,901 ‐ ‐ 2,937 100,000 20,980 75,000
9300 Other Credits 26,299 71,400 145,279 ‐ ‐ 23,769 ‐
TOTAL REVENUE 7,324,845 6,624,990 9,139,123 5,776,691 5,250,892 5,256,392 5,309,148
NON‐OPERATING EXPENSES
9500 Interest expense 204,207 222,750 144,047 60,643 68,000 67,670 72,000
TOTAL EXPENSES 204,207 222,750 144,047 60,643 68,000 67,670 72,000
NET TOTAL 7,120,638$ 6,402,240$ 8,995,076$ 5,716,048$ 5,182,892$ 5,188,722$ 5,237,148$
91
Non‐Operating Revenues and Expenses Budget Justifications
NON‐OPERATING REVENUE
9100 Interest incomeInterest earned on all bank deposits and investments. 20,000$
9200 Taxes‐property (operating levy)FYE14 Tax Levy Ordinance 3,100,000$
9205 Property tax interest (operating levy)Interest received on the operating tax levy. 2,000$
9250 Taxes‐corporate replacement
602,222$
9280 AIP Reimbursement FundsAmounts reimbursed to the airport for previous projects. 950,000$
NON‐OPERATING EXPENSES
9500 Interest expense
Total interest expense 72,000$
OTHER CAPITAL CONTRIBUTIONS
9270 Passenger facility charges
Passenger facility charge ($4.5 less expenses)
559,926$
9260 Funds from auctioned equipment 75,000$
Personal Property Replacement Tax (PPRT) revenue received from the Illinois Department of Revenue
(estimate).
92
Capital Improvement Program Summary The Capital Improvement Program (CIP) is a five to ten year program that provides for critical improvements and asset preservation. The program includes projects that address federal security requirements, airfield safety, enhanced revenue potential, rolling equipment replacement, asset preservation and completion of the newly updated Master Plan.
Airside Projects $527,000
Landside Projects 713,000
Terminal Projects 534,000
Administration Projects 175,000
Maintenance Projects 416,980
Operations Projects 80,000
Total Capital Improvements $2,445,980
Funding sources for the projects and replacements include Airport Improvement Program (AIP) grants, Passenger Facility Charges (PFC), allocated reserve funds, the balance of the capital accounts, operating revenues and short term borrowings where appropriate. Projected FYE15 CIP capital expenditures are as follows and detail of individual items to follow. Airside Projects Airside projects include improvements for runways, taxiways, aprons, and buildings inside the airfield fence. Rehabilitate Runway 1/19 ‐ Phase 3 FAA AIP Project – 3rd phase of the runway reconstruction project. Thius is the next phase to complete rebuild the Runway 1/19. This will be approximately 2000 feet. The Authoritys share is 5%.
Project Cost: Authority share only $226,000
Total Project Cost $6,172,683Operating Impact – reduction in heavy maintenance and ground work in shoulder area.
Est. $40,000
Rehabilitate Runway 1/19 ‐ Phase 4 FAA AIP Project – 4th phase of the runway reconstruction project. This is the last phase of rebuilding the runway of approximately 2200 feet. The Authoritys share is 2.5%
Project Cost: Authority share only $150,000
Total Project Cost $6,172,683Operating Impact – reduction in heavy maintenance and ground work in shoulder area.
Est. $40,000
93
Capital Improvement Program Summary(con’t) Fencing ‐ Phase 1 and 2 FAA AIP Project ‐ Currently the airport has 6 and 8 ft. fencing on the perimeter of the airfield. This project is to improve the safety and security of the airfield by transitioning all fencing to 10 ft. The Authoritys share is 5%.
Project Cost: Authority share only $81,000
Total Project Cost $1,592,000Operating Impact – reduction in repairs and wildlife damage repairs.
Est. $20,000
Ramp Repairs In continuation of the pavement maintenance program. These areas include but are not limited to the FIS, Terminal, Main ramp, and South Cargo areas. This work will fix the spalling of the concrete and also remove and replace the joint material that is creating FOD. With the increase in passenger flights, and usage of these ramps, repairs are needed to allow safe operation of all aircraft operating in or transitioning through the area.
Total Project Cost $70,000
Operating Impact – reduction of unplanned rehab N/A Landside Projects Projects relate to any area outside of the airfield except for the terminal. Falcon Road & Airport Drive Improvement Total project investment is $3 million however we will fund a portion of the project annually. This is a joint project with the City of Rockford and the total cost of the project is approximately $9.5 million.
Total Project Cost $275,000
Operating Impact 20,000 40 Airport Drive Aquire 40 Airport Drive Facility
Total Project Cost $400,000
Operating Impact N/A 60 Airport Drive Facility Rehabilitation New siding, gutters and insulation for administration building
Total Project Cost $38,000
Operating Impact – reduction of unplanned rehab N/A
94
Capital Improvement Program Summary(con’t) Terminal Projects Projects related to any areas from terminal parking lots to the jet bridges and everything in between. Terminal Facility Capacity Expansion ‐ Design and Phase I Potential FAA AIP Project ‐ As passenger service has grown the capacity of the Terminal building is stretching the limits of the facility. During our peak travel times lines are long and create safety issues and reduce our hassle free environment. These modifications will allow us to process more passengers in a timely manner.
Total Project Cost $500,000
Operating Impact N/A Jet Bridge Tires Solid fill Jet Bridge Tires (4) current tires are experiencing dry rot.
Total Project Cost $12,000
Operating Impact N/A Replacement Utility Vehicle Replacement of seven plus year old utility vehicle with attachments and enclosure, a viable piece of equipment which maintain administration and FIS/International terminals.
Total Project Cost $22,000
Operating Impact N/A Administration Projects Projects related to general information technology on administrative areas. Asset Management System Implementation Implementation of an asset management system. This would be a tool for both the Maintenance and Operations Staff to work with the Part 139 inspection requirements. This is the first phase of a four phase project.
Total Project Cost $175,000
Operating Impact N/A
95
Capital Improvement Program Summary(con’t) Maintenance Projects Maintenance projects for the various equipment and maintenance needs at the airport. Skid Loader and Arttachment Replacement of 2002 Bobcat skidloader. Attachments would include a snow blade, asphalt planer and a snow blower. This assumes the trade‐in of vehicle 85, a 2002 Bobcat skidloader.
Total Cost $48,500
Operating Impact Reduced repair expenses Loader Tires Snow tires for endloaders 82 and 83. These tires would provide traction in the snow far better than the current quarry type tires.
Total Cost $33,500
Operating Impact Reduced repair expenses Automated Guidance System This is a GP based auto steering system, This is one full system interchangeable between vehicles 97 and 103. This system would be utilized for mowing and snow removal efficiency.
Total Cost $9,150
Operating Impact Reduced repair expenses Replacement of Vehicle 61 Vehicle 61 is a 1999 Ford sedan. Replacement vehicle will be a F‐150 Ford or similar Quad cab pickup truck.
Total Cost $35,000
Operating Impact Reduced repair expenses Chemical Application Equipment This equipment will provide the final plow truck with chemical application equipment.
Total Cost $17,000
Operating Impact N/A Retention Facility Water Service This item will provide for a 2” water service to City of Rockford water main.
Total Cost $10,000
Operating Impact Reduced energy costs
96
Capital Improvement Program Summary(con’t) Flatbed Tiltbed Trailer Used tilt deck trailer for equipment and material hauling.
Total Cost $4,500
Operating Impact Reduced staff time Snow Removal Equipment Replacement SRE for 20 year old plows and blowers that will be replaced with a broom. Total budget $666,000, airport share $66,000
Total Cost $66,000
Operating Impact Reduced repair expenses High Speed Runway Broom This piece of equipment will provide another piece of SRE. This piece will be in addition to the current SRE fleet. (2 leased) – 1st payment 6/2014 – $193,330
Total Cost $193,330
Operating Impact Reduced repair expenses Operations Projects Operations projects necessary to maintain adequate safety and security at the airport. Security Cameras and Readers This project will add additional cameras to the security system to allow for greater security coverage in the terminal and other areas that have limited to no coverage at this time. The Pan‐Tilt‐Zoom (PTZ) style camera allow for the greatest flexibility and largest coverage area with the least amount of cameras, and is the best choice for large open areas. The fixed mounted cameras will be placed on entry and exit doors to help verify identity and better record activity at access points. The readers will be placed on doors that are currently controlled with lock and key method. Changing those doors over will increase the level of security for the airport, and allow us to immediately revoke access.
Total Cost $30,000
Operating Impact N/A Communication Application A communications application called Blazecast. This system allows for mass notification for multiple scenarios via multiple sources (text, voice, email, PC notification, prerecorded messages). This system will solve the issues we have with notification during emergency situations, severe weather, and others. In the event of an emergency we can call up preset information and with the click of a mouse, or a phone pass code we can initiate the required notifications.
Total Cost $25,000
Operating Impact N/A
97
Capital Improvement Program Summary(con’t) Radios This project will allow the airport to come into compliance with the FCC narrow banding rule that went into effect on January 1st 2013. The airport narrow banded all FCC frequencies, but has not updated the radios in the vehicles.
Total Cost $25,000
Operating Impact N/A
98
Exhibit 1
Tentative Budget and Appropriation Ordinance
GREATER ROCKFORD AIRPORT AUTHORITY RESOLUTION NO. 14‐15
WHEREAS, the Greater Rockford Airport Authority (the "Authority") is a municipal corporation
located in Winnebago County, Illinois, duly created, organized, and existing under an Act of the General Assembly of the State of Illinois entitled the "Airport Authority's Act," as amended, 70 ILCS 5, et. seq., and having the powers, objects, and purposes provided under said Act;
WHEREAS, in accordance with 50 ILCS 330/3, the Authority is required to adopt a Tentative Budget and Appropriation Ordinance for the fiscal year, beginning May 1, 2014 and ending April 30, 2015;
WHEREAS, in accordance with 50 ILCS 330/3, the Authority is required to place on file at the Administrative offices of the Authority for public inspection a copy of the Tentative Budget and Appropriation Ordinance; and
WHEREAS, in accordance with 50 ILCS 330/3, 35 ILCS 200/18‐50, and 35 ILCS 200/23‐35, the Authority is required to call for a public hearing on the Tentative Budget and Appropriation Ordinance, and publish notice of said public hearing.
NOW, THEREFORE, be it resolved by the Chairman and the Board of Commissioners at the Authority, Winnebago County, State of Illinois, that:
1. The Authority hereby adopts the Tentative Budget and Appropriation Ordinance for the fiscal year, beginning May 1, 2014 and ending April 30, 2015 a copy of which is on file at the Administrative Offices of the Authority;
2. The Authority hereby directs its staff to place on file at the Administrative Offices of the
Authority for public inspection a copy of the Tentative Budget and Appropriation Ordinance for the fiscal year, beginning May 1, 2014 and ending April 30, 2015 a copy of which shall be placed on file at least thirty (30) days prior to the date set by the Authority for the public hearing;
3. The Authority hereby directs its staff to call for and hold a public hearing on the Tentative
Budget and Appropriation Ordinance on May 22, 2014 at 5:25 p.m. at the Administrative Offices of the Authority;
4. The Authority hereby directs its staff to publish in a newspaper of general circulation
notice of the public hearing on the Tentative Budget and Appropriation Ordinance, provided that said notice shall be published at least thirty (30) days prior to the date set by the Authority for the public hearing.
99
Exhibit 1 (con’t)
Tentative Budget and Appropriation Ordinance RESOLUTION NO. 14‐15
5. The Authority's staff is hereby authorized and directed to take any additional actions necessary to effectuate the above Resolution in accordance with applicable Illinois statutory law.
Commissioner Derry moved, seconded by Commissioner Copeland that Resolution Number 14‐15 be adopted.
Vote Vote
Paul Cicero _aye__ Patrick Derry _aye__ Kenneth Copeland _aye__ Tom Myers _absent Tom Dal Santo _aye Ray Wetzel _aye__
ADOPTED this 27th day of March, 2014 by the Chairman and the Board of Commissioners of the Greater Rockford Airport Authority, Winnebago County, Illinois.
(Signed March 27, 2014)__________ Ray Wetzel, Secretary
ATTEST: (Signed March 27, 2014)__________ Kenneth Copeland, Treasurer
100
Exhibit 2 Chicago Rockford International Airport (RFD)
Rates and Charges Effective June 1, 2013
Terminal Usage fee (includes use of ramps, jet way, baggage claim & public safety fee)
Signatory and/or scheduled Airlines $65.00 Non‐Signatory and/or charter flights $130.00
Ticket Counter/Computer Use fee (per enplanement) $0.20 Passenger Facility Charge (PFC) (per enplanement) $4.50 Ticketing, passenger check‐in and airline station services
(excludes below wing) (per seat) $2.25 Landing Fee
Greater than 120,000,000 pounds annual landed weight $1.934 /1000lbs Less than 120,000,000 pounds annual landed weight $1.964 /1000lbs
Landing fees will only apply to revenue producing commercial cargo and passenger air carriers with a minimum weight of 28,000 pounds. Fuel Flowage Fees Class A Permit $1,125.00 Flowage Fee $0.06/gallon Class B Permit $600.00 Flowage Fee $0.08/gallon Class C Permit $375.00 Flowage Fee $0.08/gallon Flowage fee applies to all non‐revenue producing aircraft fuelings. Commercial operating permit /per square foot $0.28 Commercial operating permit/Nontenant (base fee) $250.00 Commercial operating permit/Nontenant (additional per badge fee) $250.00 International rubbish fee 4x4 hopper (200 gallons) $410.00
Black cart (60 gallons) $105.00 Gray cart (40 gallons) $85.00 User is ultimately responsible for fines incurred as of the result of use (IEPA, CBP, Dept of Agriculture, etc) Badging Fees
Secure, Sterile & AOA w/SIDA endorsement Original issue badge $100.00 Badge renewal $50.00 1st lost badge with re‐issue $250.00 2nd lost badge with re‐issue $500.00 3rd lost badge with re‐issue $1,000.00
101
Exhibit 2(con’t) Badging Fees
AOA Original issue badge $50.00 Badge renewal $25.00 1st lost badge with re‐issue $150.00 2nd lost badge with re‐issue $300.00 3rd lost badge with re‐issue $600.00
Not returned or lost badges (all types) $250.00 Fingerprint fee (non‐badged) $35.00 Fingerprint fee plus required follow up investigation if necessary $55.00/hr
Fines
Security system false alarm $25.00 Security system false alarm requiring an Operations response $75.00 Unauthorized SIDA Entry/Exit (per occurrence) $100.00 Improper use of RFD ID media ‐ (Includes ID media revocation) $150.00 Operation of an out of service vehicle on RFD AOA
Non‐movement area (per occurrence) $250.00 Premise key (Lost key ‐Cost to re‐key all locks affected
including labor to disassemble if necessary.) Airfield incursions/TSA violations ( Violator is responsible
for all costs/fines levied to RFD by FAA/TSA) Service Fees
Escort fee per 1/2 hour minimum ($50/hour) $25.00 Maintenance fee for snow removal (minimum 1 hour) $75.00/hr Equipment Usage fee/per hour plus labor fee $125.00/hr RFD labor fee ‐/per hour plus parts/equipment
Base $50.00/hr Skilled $65.00/hr Administration $75.00/hr Ground Security Coordinator fee (1/2 hour minimum) $60.00/hr
Aircraft Parking Fee(excluding active overnight aircraft)
Fee will be charged after 24hours. Based on square feet of aircraft – length by wing span. The following fees will not apply to general aviation or corporate aircraft. Per day rates.
Group 1 $4.66 Group 2 $11.49 Group 3 $35.24 Group 4 $60.35 Group 5 $87.14 Group 6 $125.99
102
Exhibit 3
Acronym and Glossary of Terms
AAAE ‐ American Association of Airport Executives ACI‐NA ‐ Airports Council International – North America Accrual Basis of Accounting‐ This basis of accounting attempts to record financial transaction in the period they occur rather than recording them in the period they are paid. AD&D ‐ Accidental Death and Dismemberment AFR ‐ Annual Financial Report Aircraft Operation‐ The landing or take off of an aircraft. Airline Load Factor – The percentage of seats occupied on an aircraft. Airport – Refers to the Chicago Rockford International Airport. Airport Improvement Program (AIP) – A Federal Aviation Administration program periodically reauthorized by Congress which distributes the proceeds of the federal tax on airline tickets to airports through grants for eligible construction projects and land acquisition. Airport Layout Plan (ALP) – A blue print of an airport required by the Federal Aviation Administration which shows current and future airport development. Airport Master Plan – An airport master plan represents the approved actions to be accomplished for phased development of the airport. Master plans address the airfield, terminal, landside access improvements, modernization and expansion of existing airports and establish the premise for site selection and planning for a new airport. Airport Operation ‐ One landing or takeoff Airside – The airfield side of an airport used by aircraft, runways, taxiways, and aircraft parking aprons. Amortization – (1) The gradual reduction of a debt by means of equal periodic payments sufficient to meet current interest and liquidate the debt at maturity. (2) The process of spreading the costs of an intangible asset over the expected useful life of the asset. (3) The deduction of capital expenses over a specific period of time. Similar to depreciation, it is a method of measuring the “consumption” of the value of long‐term assets like equipment and buildings. ARFF – Aircraft Rescue and Fire Fighting. The Authority – Refers to the Greater Rockford Airport Authority Balanced Budget – a budget where the revenues equals expenditures.
103
Exhibit 3(con’t) BOD ‐ Biochemical Oxygen Demand Bond – A written promise to pay a specified sum of money, called principal, at a specified maturity date along with periodic interest paid at a specified percentage of the outstanding principal. They are usually used for long‐term debt. Budget – A financial plan for a specified period of time (fiscal year) that matches planned expenses and revenues with planned services. Budget Calendar – The schedule of key dates or milestones that the Authority follows in the preparation, adoption and administration of the annual budget. BFYE – Budgeted Fiscal Year End Capital Budget ‐ Budgeted expenditures for capital improvements, capital outlay, debt service and grant service that are in excess of $2,000 and have a life expentancy in excess of 2 years. Capital Improvement Program – A rolling, near‐term five year program that provides for critical needed improvements and asset preservation. The program includes projects that address federal security requirements, improved airfield safety and enhance revenue potential. Cash Equivalent – In the context of cash flows reporting, short term highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cost Centers – An area of the Airport to which a revenue or expense is attributed, e.g., airfield, terminal, etc. Cost Per Enplanements – The airlines’ airport cost, landing fees and rents, divided by the total number of passengers enplaned at the airport. CPE ‐ Continuing Professional Education CPI‐W ‐ Consumer Price Index – Urban Wage Earners & Clerical Workers CY – Calendar Year Deplaning Passenger – An arriving passenger. Depreciation – Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of physical elements, inadequacy or obsolescence. Enplaning Passenger – A departing Passenger.
104
Exhibit 3(con’t) Enterprise Fund – Established to account for operations, including debt service that are financed and operated similarly to private businesses – where the intent is the service is self‐sufficient, with all costs supported predominantly by user charges. FAR – Federal Aviation Regulations FAS ‐ Fixed Asset Schedules Federal Aviation Administration (FAA) – A component of the Department of Transportation with primary responsibility for the safety of civil aviation. Federal Grants – FAA’s Airport Improvement Program provides both entitlement and discretionary grants for eligible airport projects. Entitlement funds are determined by a formula according to enplanements at individual airports. The authority applies for discretionary grants from the FAA through a Letter of Intent (LOI) process. Each LOI represents an intention to obligate funds from future federal budget appropriations. The issuance of a Letter of Intent is subject to receipt of Congressional appropriations for grants to airports, and does not itself constitute a binding commitment of funds by the FAA. For planning purposes, the amounts in approved LOI from FAA are used by the Authority as the estimate of federal discretionary grants to be received. FIS ‐ Federal Inspection Service Fiscal Year – A 12 month period, other than a calendar year, used for financial reporting purposes. The GRAA’s fiscal year begins May 1st and ends April 30th. Fixed Base Operator (FBO) ‐ Businesses on airports that sell fuel to private plane owners, provide aircraft parking, as well as aircraft maintenance and mechanical services. Flight Information Displays (FID) – Electronic displays to inform passengers of the status of their flight, such as arrival time, and terminal building gate number. FOD – Foreign Object Debris or trash on the airfield. FTZ ‐ Foreign Trade Zone FYE ‐ Fiscal Year End GAAP – General Accepted Accounting Principles are uniform minimum standards and guidelines for accounting and financial statement reporting. GASB – Governmental Accounting Standards Board, the body responsible for establishing GAAP for governmental entities. General Aviation (GA) – The activities of privately owned aircraft that are not used for commercial purposes, such as the movement of passengers or freight. GFOA ‐ Government Finance Officers Association
105
Exhibit 3(con’t) GO ‐ General Obligation (Bonds) GRAA ‐ Greater Rockford Airport Authority ILS ‐ Instrument Landing System IMRF ‐ Illinois Municipal Retirement Fund, retirement fund for all Authority employees Infrastructure ‐ Airport runways, taxiways, aprons and utility systems INS ‐ Immigration and Naturalization Service IPAA ‐ Illinois Public Airports Association Jet Bridge – A mechanical tunnel used by passengers to pass from the terminal building to an aircraft. Landed Weight – The maximum gross certificated landed weight of an aircraft, or all aircraft landing at an airport in a fiscal year, which is not dependent on the number of passengers on board. Landing fee – The rate charged by an airport to commercial aircraft operators per thousand pounds of landed weight. Landside – All areas of land owned and maintained by the RTAA outside of the airfield areas perimeter fence. M&I ‐ Meals and Incidentals Non‐Airline Revenue – Airport revenue earned from sources other than airlines, such as concessions revenues: Merchandise, Food and Beverage, Rental Car, etc. Airports try to maximize non‐airline revenue to help reduce the amounts they collect from the airlines. Non Signatory Airline – Airlines that have not signed an agreement with airport committing to rent an airport leasehold for a fixed period of time. OTC/DDEC ‐ Oshkosh Training Center/Diesel Diagnostic Electronic Components Part 107 – A section of the Federal Aviation Regulations having to do with an airport operator’s responsibilities for airport security. Part 139 – A section of the Federal Aviation Regulations having to do with the certification of an airport’s airfield. Part 150 Study – A noise study defined by a section of the Federal Aviation Regulations, that when completed, makes an airport eligible for noise insulation and related land acquisition grants. The Study produces two documents, the Noise Exposure Map and the Noise Compatibility Program.
106
Exhibit 3(con’t) Passenger Facility Charge (PFC) – A $4.50 charge (net $4.39 to Airport) attached to each ticketed passenger that boards an airplane at the Airport. Certain types of passengers, including military, are excluded from the Passenger Facility Charge.
PEBSCO ‐ Public Employees Benefit Services Corporation, optional 457 deferred compensation for employees
Proprietary Fund – One of three Fund classifications established by the GAAP standards. This Fund is used to account for funds for operations which are managed in a manner similar to private business. Unlike governmental funds, net income is determined in Proprietary Funds. The two types of Proprietary Funds are Enterprise and Internal Service Funds. RFD‐ The FAA three letter identifier for the Chicago Rockford International Airport. RWY – Runway Security Identification Display Area (SIDA) – Secure areas of the airport in which identification badges are required to be displayed. Signatory Airline – Airlines that have signed an agreement with an airport committing to rent an airport leasehold for a fixed period of time. SRE ‐ Snow Removal Equipment T‐Hangar – A small hangar that resembles a “T” when viewed from above. T hangars are placed next to each other, and inter locked back to back, to maximize the number that can be placed in an area which minimizes the land rental component of their cost. Transportation Security Administration (TSA) – A component of the Department of Transportation with primary responsibilities for the security of civil aviation. TSS ‐ Total Suspended Solids TXY – Taxiway UPS ‐ United Parcel Service
107
Exhibit 4 Statistics
Airport Authority Area Located entirely within Winnebago County, Illinois, the Authority Area includes, Rockford, Machesney Park, Loves Park, Cherry Valley, Roscoe, New Milford and some unincorporated areas Airport Location Southwest quadrant of the City of Rockford 4 miles south of downtown Rockford, IL 80 miles WNW of O’Hare International Airport Access Interstate 90 and 39 U.S. Highway 20 Illinois Route 2 and 251 Area 3,000 acres Elevation 736 ft. above sea level LAT 42 11” 36” (42 degrees, 11 minutes and 36 seconds) LNG 89 05’ 50” (89 degrees, 05 minutes and 50 seconds) Airport Code RFD Runways Runway 1/19, 8,200’ X 150’, ILS Category I Runway 7/25, 10,000’ x 1150’, ILS Category II/III Tower TRSA 24/7‐365 FBOs Emery Air, Inc., North American/Pride Scheduled Passenger Service Allegiant Airlines, Direct Air and Apple Vacations Terminal Airlines 2,211 sq. ft. Tenants 4,443 sq. ft. Public/Common 30,433 sq. ft. Mechanical 7,714 sq. ft. Total 44,801 sq. ft. Number of Passenger Gates 5 Number of Loading Bridges 5 Number of Concessionaires in terminal 1 Number of rental car agencies in terminal 3 Car Rental Agencies Avis, Hertz and National/Alamo Parking Short‐Term 1,477 Rental Cars 190 Employees 54
108
Exhibit 4(con’t) Cargo UPS Buildings 670,000 sq. ft. International Cargo Building 70,000 sq. ft
Cross Dock Building 27,600 sq. ft. Cargo Building 21,000 sq. ft. International Customs/Immigration Federal Inspection Service Facility Service Area Population within Authority Area, 227,773 Population within 25 miles, 740,000 Population within 60‐minute drive, 2.5 million Population within 90‐minute drive, 8.4 million Airport Authority Area Equalized Assessed Valuation
2009 $3,722,982,000 6.47%
2010 $3,525,363,000 ‐5.31%
2011 $3,350,384,000 ‐4.96%
2012 $3,064,894,000 ‐8.52%
2013 $2,806,901,362 ‐8.42%
% Change
from Prior Yr
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2009 2010 2011 2012 2013
Thousands
109
Exhibit 4(con’t) Bond Rating 1999 A3
2000 A2 2001 A2 2002 A2 2003 A1
Based Aircraft Single engine 69 Multi engine 17 Jet 20 Helicopters 3 Total 109 Airport Operations
CY08 CY9 CY10 CY11 CY13
Air Carrier 11,903 10,649 9,727 8,731 8,341
Air Taxi 2,257 2,426 2,481 3,214 3,110
GA Local 9,516 10,212 13,327 10,673 12,470
GA Itinerant 22,821 20,676 18,485 16,896 16,388
Military 2,333 2,318 1,604 1,690 736
Total 48,830 46,281 45,624 41,204 41,045
0
10,000
20,000
30,000
40,000
50,000
60,000
CY08 CY9 CY10 CY11 CY13
Military
GA Itinerant
GA Local
Air Taxi
Air Carrier
110
Exhibit 4(con’t) Passengers
% Change
from Prior Yr
FYE10 201,544 13.73%
FYE11 206,382 2.40%
FYE12 211,894 2.67%
FYE13 208,778 ‐1.47%
FYE14 218,172 4.50%
Cargo Aircraft Landed Weight (lbs.)
% Change
from Prior Yr
FYE10 1,021,396,570 ‐23.08%
FYE11 902,395,080 ‐11.65%
FYE12 884,405,380 ‐1.99%
FYE13 806,893,740 ‐8.76%
FYE14 779,424,820 ‐3.40%
190,000
195,000
200,000
205,000
210,000
215,000
220,000
FYE10 FYE11 FYE12 FYE13 FYE14
passengers
0
200
400
600
800
1,000
1,200
FYE10 FYE11 FYE12 FYE13 FYE14
pounds
Millions
111
Exhibit 4(con’t) Cargo Enplaned and Deplaned (lbs.)
% Change
from Prior Yr
FYE10 299,640,828 ‐22.87%
FYE11 259,112,297 ‐13.53%
FYE12 291,223,839 12.39%
FYE13 269,882,551 ‐7.33%
FYE14 246,954,308 ‐8.50%
Fuel Flowage (gallons)
% Change from
Prior Yr
FYE10 17,502,695 18.61%
FYE11 17,242,721 ‐1.49%
FYE12 15,223,883 ‐11.71%
FYE13 11,820,418 ‐22.36%
FYE14 9,744,711 ‐17.56%
0
2
4
6
8
1 0
1 2
1 4
1 6
1 8
2 0
FY E0 9 FY E1 0 FY E1 1 FY E1 2 FY E1 3
gallons
Millions
0
50
100
150
200
250
300
350
FYE10 FYE11 FYE12 FYE13 FYE14
pounds
Millions
112
Exhibit 5
ORDINANCE NO. 14‐02 FISCAL YEAR 2015 BUDGET AND APPROPRIATION ORDINANCE CERTIFICATE
I, PAUL CICERO, Chairman of the Board of Commissioners of the Greater Rockford Airport Authority, Winnebago County, Illinois (the "Authority"), a municipal corporation of the State of Illinois, certify that the attached is a true and complete copy of an Ordinance entitled:
"GREATER ROCKFORD AIRPORT AUTHORITY BUDGET AND APPROPRIATION ORDINANCE FOR THE FISCAL YEAR BEGINNING May 1, 2014 AND ENDING April 30, 2015,"
unanimously passed at a regular meeting of the Board of Commissioners (the "Board") of the Authority at which a quorum of the Board was present, and held at the offices of the Authority at 60 Airport Drive, Rockford, Illinois, on May 22, 2014 having complied with the provisions of the Open Meetings Act (5 ILCS 120/1 et. seq.).
I further certify that there have been no amendments or revisions to said Ordinance, and that it is now in full force and effect.
IN TESTIMONY WHEREOF, I have set my hand and affixed the corporate seal of the Authority this 22nd day of May 2014. [SEAL] (signed May 22, 2014)_______ Paul Cicero
Chairman, Board of Commissioners Greater Rockford Airport Authority
113
Exhibit 5(con’t)
ORDINANCE NO. 14‐02
GREATER ROCKFORD AIRPORT AUTHORITY BUDGET AND APPROPRIATION ORDINANCE
FOR THE FISCAL YEAR
BEGINNING May 1, 2014 AND ENDING April 30, 2015 BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE GREATER ROCKFORD AIRPORT AUTHORITY, WINNEBAGO COUNTY, ILLINOIS, AS FOLLOWS: Section 1. Adoption of Budget The Tentative Budget, as previously presented, is adopted as the Budget for the Greater Rockford Airport Authority, Winnebago County, Illinois, the “Authority,” and is attached hereto and incorporated herein by reference. The amounts specified are the maximum estimated for probable expenditure or commitment prior to April 30, 2015, and there is included in the appropriated amounts funds derived from other sources than local taxation, and which may be spent for the benefit of the Authority without actually being received and expended by it. All unexpected balance(s) of any item or items of any general appropriation made by this Ordinance may be expended in making up any deficiency in any item or items in the same general appropriation made by this Ordinance.
Placed on file for Public Inspection April 10, 2014
Notice of Public Hearing Published on April 10, 2014
Public Hearing held May 22, 2014 (at 5:25 p.m. Central Daylight Savings time, pursuant to Notice)
Section 2. Appropriations.
For the fiscal year ending April 30, 2015, there is hereby appropriated for the corporate purposes of the Greater Rockford Airport Authority the total sum of $11,165,607 which sum of money is deemed necessary to pay the costs of operating and maintaining the Greater Rockford Airport, and other expenses of the Authority, the purposes of each such appropriation being specified in the attached Budget document.
114
Exhibit 5(con’t) Section 3. Filing with County Clerk.
That a certified copy of this Ordinance shall be filed with the County Clerk on or before June 21, 2014 by the financial officer of the Authority.
Section 4. Conflicting Orders, Resolutions or Ordinances.
That all orders, resolutions or ordinances in conflict herewith are repealed insofar as such conflict exists.
Section 5. Effective Date.
This Ordinance shall be effective following its passage by the Board and upon its approval by the Chairman of the Board.
Moved for adoption by Commissioner __DalSanto____ and seconded by Commissioner _Wetzel________.
Roll Call
Paul R. Cicero _aye_ Kenneth Edward Copeland _aye_ Thomas DalSanto _aye Patrick Derry _absent_
Thomas Myers _aye Ray Wetzel _aye_
Passed and approved by the Board of Commissioners of the Greater Rockford Airport Authority on May 22, 2014.
(signed May 22, 2014)__________
Paul Cicero Chairman, Board of Commissioners
Greater Rockford Airport Authority ATTEST: (Signed May 22, 2014) _ Raymond Wetzel Secretary, Board of Commissioners Greater Rockford Airport Authority
115
Exhibit 5(con’t) ORDINANCE NO. 14‐02
2014‐2015 BUDGET AND APPROPRIATION ORDINANCE
CERTIFICATE
I, K. Edward Copeland, Treasurer of the Board of Commissioners of the Greater Rockford Airport Authority, Winnebago County, Illinois (the "Authority"), a municipal corporation of the State of Illinois, certify that I am Treasurer of the Board of Commissioners of the Authority and that attached is an estimate prepared by me for the revenues, by source, anticipated to be received by the Authority during such fiscal year of the Authority, pursuant to 50 ILCS 330/3, as amended.
IN TESTIMONY WHEREOF, I have set my hand and affixed the corporate seal of the Authority this 22nd day of May, 2014. [SEAL] (Signed May 22, 2014)___________
K. Edward Copeland Treasurer, Board of Commissioners Greater Rockford Airport Authority
116
Exhibit 5(con’t) ESTIMATED REVENUES BY SOURCE
FISCAL YEAR 2015
EXPECTED CASH FLOW DURING THE YEAR:
SOURCES Operating Budget Revenue $ 5,532,049 Non‐Operating Revenue 622,222 Tax Levy 3,102,000 AIP Fund Reimbursement 950,000 Passenger Facility Charges 559,926 Debt Issue 400,000 Other Financing Sources 75,000 Total Sources $11,241,197 Beginning Fund Balance, FY13 6,134,462
Total Sources and Fund Balance $17,375,659
USES Operating Expenditures $ 8,402,877 Non‐Operating Expenditures 72,000 Debt Service 253,750 Capital Expenditures 2,435,980 Total Uses $11,165,607 Ending Fund Balance, FY14 6,210,052
Total Uses and Ending Fund Balance $17,375,659
117