2019 Appropriation Budget Ordinance No. 3-2018

Board Approved August 17, 2018

indianapolis airport authorityindianapolis airport authority

2019 Appropriation BudgetTable of Contents Board Approved August 17, 2018

2018 2019Total Total

Personal Services 34,444,000$ 37,154,000$ Supplies & Materials 6,069,000 6,092,000 Contractual Services and Debt Service 147,231,000 117,098,000 Operating Capital 1,604,000 925,000

Total Airport System Fund 189,348,000$ 161,269,000$ *

Total Capital Improvement Fund 110,000,000$ 210,000,000$ *

Appropriation Summary

* Appropriation amount published in local newspapers on 7/10 and 7/17

1

Airport System Fund Expenses - Appropriated Budget

Ordinance 1-2017 Ordinance 3-2018

2018 2019Budget Budget $ %

OPERATING AND MAINTENANCE: Personal Services 34,444,000$ 37,154,000$ 2,710,000$ 7.9% Utilities 10,908,000 10,576,000 (332,000) -3.0% Contractual Services 25,698,000 25,433,000 (265,000) -1.0% Supplies & Materials 6,069,000 6,092,000 23,000 0.4% Other Charges 1,769,000 1,531,000 (238,000) -13.5% Capital Expenditures 1,604,000 925,000 (679,000) -42.3% Environmental Remediation 36,000 23,000 (13,000) -36.1% Total Operating Expenses 80,528,000 81,734,000 1,206,000 1.5%

DEBT SERVICE: Special Leases - UAL 17,377,000 - (17,377,000) -100.0% Interest Payments 37,027,000 35,095,000 (1,932,000) -5.2% Principal Payments 54,416,000 44,440,000 (9,976,000) -18.3%

Total Debt Service 108,820,000 79,535,000 (29,285,000) -26.9%

TOTAL AIRPORT SYSTEM FUND 189,348,000$ 161,269,000$ (28,079,000)$ -14.8%

CAPITAL IMPROVEMENT FUND 110,000,000$ 210,000,000$ 100,000,000$ 90.9%

2019 vs 2018 Budget OrdinanceIncrease / (Decrease) Variance

2

Capital Improvement Fund Appropriation - 2019

($000)

New and Ongoing Projects (2019 Project Cost)

Stormwater & Deicing - Seerley Creek Basin Relocation & West Basin 80,303$

Rehabilitate Runway 14-32 and Taxiway M, with LED 14-32, M, and N 20,050

Airfield Maintenance and Snow Removal Equipment Facilities 10,735

Rehab and Return to Service - Old Parking Garage 9,669

Parking Garage Expansion 6,300

Cargo Building Expansion (Bldg #622) 4,999

Replace Midfield Sterile Area Security and Camera Systems 4,597

IND - Terminal and Campus Optimization 3,600

Rehabilitate, Relocate & Widen Taxiway B - Eagle Creek 3,387

Terminal Apron Joint Rehabilitation and Repair - IND 2,907

Tug Road - Relocate and Widen South of Runway 14-32 2,807

IND Baggage Handling System Recapitalization 2,700

IMC - Replacement of IW Tanks* 2,350

Terminal Back-Up Water Connection 2,235

IMC - Fire Alarm Panel Replacements 2,100

IND Terminal and Campus Wayfinding and Signage 2,100

CEP - Cooling Tower Replacement 1,870

Bldg 15 - CBP Occupancy Refurbishment 1,740

Demolition of Bldg 123 (Lexington Hotel) 1,686

Rehabilitate Airport Roads & Lots - 2018 1,500

Garage Precast Louver Panels 1,458

Construct Bus Bay in Employee Parking Lot 1,376

IMC - Hangar Door Rehabilitation 1,320

(2019) Snow Equipment Program 1,118

Concession Refresh 1,000

Other Airport Projects 15,696

Subtotal (agrees to Program Summary p. 11) 189,603$

Estimated potential carryover from prior year and IMC roof contingency 20,397

Total Capital Improvement Fund Appropriation 210,000$

3

Anticipated Rates

$8.00

$8.50

$9.00

$9.50

$10.00

$10.50

2014 2015 2016 2017 '18 Budget '19 Budget

$9.92

$9.61

$10.16

$8.42

$8.90

$8.25

Signatory Passenger Airlines Cost Per Enplanement

$1.40

$1.65

$1.90

$2.15

2014 2015 2016 2017 '18 Budget '19 Budget

$1.88 $1.92 $1.95

$1.70

$1.85

$1.71

Signatory Airlines Landing Fees (Per 1,000 lbs)

4

SSUUPPPPLLEEMMEENNTTAALL SSCCHHEEDDUULLEESS

Indianapolis Airport AuthorityCapital Improvement Program

PROJECT NAME

PRE-2018 ACTUAL

COST2018

BUDGET2018

FORECAST2019

BUDGET

ENTERPRISE PROJECTS DETAIL

IND ActivitiesExpand Airfield Fire Hydrant System - Taxiway D - - - - Construct North Service Road and Convert North Access Road to Tug Road - 306 - - Pavement Management: Airfield Rehabilitation Program - Future Years - - - - Pavement Management: Airfield Rehabilitation Program - 2019 - 262 - 282 Utility Corridor Relocation - Cargo Apron 3,377 - 250 - Apron Stormwater Inlet Repairs - IND 1,829 - 105 -

Total Airfield: - 568 - 282

IND - Terminal and Campus Optimization 1,089 1,500 2,400 3,600 IND Terminal and Campus Wayfinding and Signage 75 1,000 2,400 2,100 Terminal Back-Up Water Connection 2 245 264 2,235 Concession Refresh 403 150 500 1,000 Terminal Back-Up Heating and Cooling - - - 300 Terminal and Concourse HVAC System Upgrades - - - - Terminal Bird Deterrent System 649 - 200 - ADA Upgrades Phase 2 - - 500 - Frontier Airlines Move - - 200 -

Total Terminal: 2,218 2,895 6,464 9,235

Parking Garage Maintenance and Improvements - Future Years - - - - Garage Precast Louver Panels 192 - 320 1,458 Construct Covering over Outdoor Parking Ticket Stations - - - 170 Construct Bus Bay in Employee Parking Lot 124 - 1,000 1,376 Col. Weir Cook Parking Capacity Dynamic Signage - - 200 800 Parking Garage Maintenance and Improvements 3,284 8,800 9,360 445 Parking Garage Electric Charging Stations - - - - TNC Parking Garage Access Road Analysis - - - 150 PARCS System Assessment & Implementation 1,664 - 351 - Parking Master Plan Implementation 472 - 250 -

Total Parking: 5,736 8,800 11,481 4,399

2021 Squad 998 Replacement - - - - Refurbish and Upgrade Blue Emergency Phones - - - 175 Emergency Dispatch Software Upgrade - - - 161 ARFF Station #2 Replacement Study - - 183 129 ARFF Station #2 Assessment - - 150 58 2022 Aerial Ladder Fire Truck Replacement - - - - 2022 Rescue Squad 995 Replacement - - - - 2018 SCBA Replacement - 315 315 - Terminal PA System Rehabilitation - - 182 -

Total Safety & Security: - 315 830 523

5

Indianapolis Airport AuthorityCapital Improvement Program

PROJECT NAME

PRE-2018 ACTUAL

COST2018

BUDGET2018

FORECAST2019

BUDGETStorm Drainage Corrections - Davis Creek Outfall - - 350 823 Stormwater RFI Project 1,060 - 170 - CEP - Change out R-22 Refrigerant in Chillers - - - - IMC - IW Tank 7 Replacement 13 - 262 - IMC - IW Pipe Replacement Program - 500 - -

Total Environmental: 1,073 500 782 823

Rehabilitate Airport Roads & Lots - Future Years - - - - Rehabilitate Airport Roads & Lots - 2018 - 2,000 500 1,500 Install Traffic Signal - West Perimeter & North Service Rd - - - - IND Roads and Parking Lots Rehab 2016/2017 3,643 - 1,167 - West Perimeter Road Bridge Repairs 2 450 568 -

Total Road & Lots: 3,645 2,450 2,235 1,500

Upgrade Oracle, INFOR, and Propworks Management Softwares - - - - Capital Project Management System - Engineering - - 150 850 Geographic Information System - 500 200 300 Computer, Server and Equipment Replacement - Future Years - - - - Computer, Server and Equipment Replacement Program (2019) - - - 300 Campus Fiber Repair/Development 2,296 - 204 - Computer, Server and Equipment Replacement Program (2018) - - 615 -

Total IT: 2,296 500 1,169 1,450

Shuttle Bus Replacement (Parking) - Future Years - - - - Total Parking Shuttle Bus: - - - -

Snow Equipment Replacement Program - Future Years - - - - (2019) Snow Equipment Program - - - 1,118 (2021) Water Blaster - - - - Vegetation Control Equipment Replacement - Future Years - - - - (2020) Paint Truck - - - - (2019) Vegetation Control Equipment Program - - - 460 (2019-2023) Sweeper Truck Program - 1420 - - - - (2019) Asphalt, Soil, Ground - Compactor/Roller Replacement - - - 180

Total Vehicle & Equipment: - - - 1,758

Airport Asset Management Program 1 750 - 350 Advance Planning and Design - 2018 - - 250 -

Total Other: 1 750 250 350

Cargo Building Expansion (Bldg #622) 1 2,147 300 4,999 World Connect at IND - Branding - - - 240 Demo Avis (Bldg #18) - - - 150 CEP - Increase Capacity of the Central Plant - - - -

Total Revenue Development: 1 2,147 300 5,389

6

Indianapolis Airport AuthorityCapital Improvement Program

PROJECT NAME

PRE-2018 ACTUAL

COST2018

BUDGET2018

FORECAST2019

BUDGETCEP - Cooling Tower Replacement - 500 529 1,870 CEP - Boiler Replacement - - - - Bldg 15 - CBP Occupancy Refurbishment - - 600 1,740 AOC Data Center HVAC Rightsizing - - - 265 CEP - CoGen Analysis - - - 25 Bldg 622 - Garage Doors, HVAC, Dock Plates, & Parking Lot - - - - Bldg IAB - Exterior Siding & Parking Lot - - - - CEP - Replacement of Stack Economizers Boilers 583 - 17 - Demolition of Bldg 24 & 25 - - 590 - CEP - Replacement of IW's Supervisory Control and Data Acquisition System 268 - 270 - Bldg 122 - Signature Hangar 5 - Recoating - - 251 - CEP - Lift Station #2 Pump Replacement - - - - Hertz Renovation (Building #130) - 229 - - Demolition of Building #500 - 186 - -

Total Properties: 851 915 2,257 3,900

Total IND Activities 21,027 19,840 26,123 29,609

IMC ActivitiesIMC - Hangar Door Rehabilitation 21 1,112 660 1,320 IMC - Replacement of IW Tanks - - 1,000 2,350 IMC - Fire Alarm Panel Replacements - - - 2,100 IMC - Replace Victaulic Fire Suppression Piping - - - 850 IMC - Courtyard Roadway Replacement - - - 431 IMC - Rehabilitate Workstand/GSE Parking & Construct Tug Road - - - 430 IMC - Aircraft Apron Pavement Panel Replacements - - - - IMC - Rehabilitate Parking Lot - - - - IMC - Recoating the IW Tanks & Enclosure Containment Area 172 - 533 - IMC - Building Management System (BMS) - 67 200 - IMC - Tenant Carpet Replacement - - 170 - IMC - Commons Bldg Carpet Replacement - - 130 -

Total IMC Activities 193 1,179 2,693 7,481

CFC Funded ActivitiesParking Garage Expansion - - 200 6,300 Bldg 611 thru 615 - HVAC, Parking Lots, & Water System - - - 456

Total CFC funded Activities - - 200 6,756

7

Indianapolis Airport AuthorityCapital Improvement Program

PROJECT NAME

PRE-2018 ACTUAL

COST2018

BUDGET2018

FORECAST2019

BUDGETLand Activities

Rehab and Return to Service - Old Parking Garage 68 252 500 9,669 Land Purchase - Seerley Basin - - 5,500 - Bethel Cemetery Relocation - 2,522 3,500 - Parcels 2-4 Infrastructure - - - - Noise & General Airport System Land Acquisition 1,907 1,000 250 250 Demolition of Bldg 123 (Lexington Hotel) - - 200 1,686

Total Land Activities 1,975 3,774 9,950 11,605

Debt Funded Activities - PlannedStormwater & Deicing - Seerley Creek Basin Relocation & West Basin 697 39,620 61,000 80,303 IND Baggage Handling System Recapitalization 154 8,505 250 2,700

Total Debt Funded Activities - Planned 851 48,125 61,250 83,003

Debt Funded Activities - ProposedAirfield Maintenance and Snow Removal Equipment Facilities 752 8,000 4,150 10,735 Reconstruct Runway 5R-23L and Taxiway D with LEDs - 120 250 - CEP Underground Pipe Ground Water Intrusion - - - -

Total Debt Funded Activities - Proposed 752 8,120 4,400 10,735

Debt Funded Activities - Non-Airline Revenue Funding SourceIND Fuel Farm Expansion - - - 500

Total Debt Funded Activities - Non-Airline Revenue Funding Source - - - 500

Activities With Direct ReimbursementTug Road - Relocate and Widen South of Runway 14-32 - - 600 2,807

Total Activities With No Net IAA Cash Contribution - - 600 2,807

TOTAL ENTERPRISE IND ACTIVITIES 24,798 81,038 105,216 152,496

8

Indianapolis Airport AuthorityCapital Improvement Program

PROJECT NAME

PRE-2018 ACTUAL

COST2018

BUDGET2018

FORECAST2019

BUDGET

AIP IND PROJECTS DETAIL

Grant Funded ActivitiesRehabilitate Runway 14-32 and Taxiway M, with LED 14-32, M, and N - 625 300 20,050 Replace Midfield Sterile Area Security and Camera Systems 303 1,000 1,500 4,597 Deicing Control Facilities Improvements - 2018 - 446 500 500 FAR Part 150 Noise Map Update 2018-2019 - - 200 150 Rehab Taxiway C, C4, C7 with LED 915 7,995 14,268 - Rehab TW H, H1 & H2 with LED's 4,365 - 6,435 - Shuttle Bus Replacement (Parking) - 2017 Electric Buses 3,885 - 1,615 - Shuttle Bus Replacement (Parking) - 2018 - 2,250 2,250 - Deicing Control Facilities Improvements - 2016 1,072 - 266 - IND Airport Layout Plan (ALP) Update 1,103 - 37 - 2018 ARFF 3000 Replacement - 1,000 1,000 -

Total Programmed: 11,643 13,316 28,371 25,297

Terminal Apron Joint Rehabilitation and Repair - IND - - - 2,907 ARFF Vehicle Replacement Program - Future Years - - - - Airfield Pavement Evaluation and Management Plan Update - Future Years - - - - Rehabilitate Taxiway P - - - - Reconstruct Runway 5R-23L and Taxiway D with LEDs - 480 1,000 - *** Debt Funded Portion of Project - Local Share *** - (120) (250) - Milling for Friction on Runway 5L-23R - - - - Master Plan Update - 2023 - - - -

Total Likely: - 360 750 2,907

TW C8 - Design & Construction w/ LED - - - - Voluntary Airport Low Emission (VALE) - Future Years - - - - Deicing Control Facilities Improvements - Future Years - - - - (2019) Sweeper Truck Program - 1100 - - - 440 Sweeper Trucks Replacement - Future Years - - - - Sustainability Management Plan - 750 250 750 Voluntary Airport Low Emission (VALE) 2019 - - - 680 Deicing Control Facilities Improvements - 2019 - - - 450 (2018) Snow Equipment Replacement Program - 797 - 225 High Speed Exits B5 and B7 Reconfiguration, with LED signage and lighing for B5 - - - - ARFF Station #2 Design and Construction - - - - Pavement Removal and Replacement of IMC TWY A7 Connector - 80 - - Voluntary Airport Low Emission (VALE) 2018 - 1,360 1,360 -

Total Contingent: - 2,987 1,610 2,545

TOTAL GRANT / AIP FUNDED ACTIVITIES 11,643 16,663 30,731 30,749

TOTAL IND ACTIVITIES 36,441 97,701 135,947 183,245

9

Indianapolis Airport AuthorityCapital Improvement Program

PROJECT NAME

PRE-2018 ACTUAL

COST2018

BUDGET2018

FORECAST2019

BUDGET

ENTERPRISE PROJECTS DETAIL

Reliever ActivitiesStorm Structures - Indy Regional - - - 150 Corporate Hangar Development Infrastructure - Indy Regional - - - - Maintenance Area Pavement - Indy Regional - - - - Replace West Ramp Lights - Indy Regional - - - - Material Storage Building - Regional - - 115 -

Total Indy Regional: - - 115 150

Rehabilitate Northwest T-Hangar Parking Lot - Eagle Creek - - - - Construct T-Hangars - Eagle Creek - - - - Material Storage Building - Eagle Creek - - 115 -

Total Eagle Creek: - - 115 -

Construct T-Hangars - Metro - - - - Rehabilitate Parking Lot - Metro - - - - Corporate Hangar Access Road - Metro - - - - Maintenance Area Pavement - Metro - - - - T-Hangar Rehabilitation - Metro 379 - 91 - Metro Fuel Farm Refurbishment - - 180 - Material Storage Building - Metro - - 115 -

Total Metro: 379 - 386 -

Construct T-Hangars - Hendricks County - - - - Jet A Fueling - Hendricks Co. - - - - (2023) Replace Snow Truck (Hendricks County) - - - - Material Storage Building - Hendricks County - - 115 -

Total Hendricks Co.: - - 115 -

Rehabilitate Building Exterior/EIFS - Heliport - - - 501 Garage Concrete Repairs - Heliport - - 165 -

Total Heliport: - - 165 501

TOTAL RELIEVER ENTERPRISE ACTIVITIES 379 - 896 651

AIP RELIEVER PROJECTS DETAIL

Grant Funded ActivitiesInstall Perimeter Fence - Indy Regional - - - 180 Master Plan and ALP Update - Indy Regional - - - 500 Rehabilitate East & West Apron Pavement - Indy Regional 49 1,180 1,218 34 Reconstruct Runway 7-25 - Indy Regional - - - - Joint Replacement and Repairs Runway 16-34 - Indy Regional 349 14 14 - Environmental Assessment for Long-Term Airport Improvements - Indy Regional - - - - Self-Service Fuel System and Tank (equipment only) - Indy Regional - 400 - -

Total Indy Regional: 398 1,194 1,232 714

Rehabilitate, Relocate & Widen Taxiway B - Eagle Creek 197 2,828 1,057 3,387

10

Indianapolis Airport AuthorityCapital Improvement Program

PROJECT NAME

PRE-2018 ACTUAL

COST2018

BUDGET2018

FORECAST2019

BUDGETInstall Perimeter Fence - Eagle Creek - - - 150 Airport Layout Plan (ALP) Update - Eagle Creek 279 - 121 100 Rehabilitate Northwest T-Hangar Taxilanes Phase I & II - Eagle Creek - 442 - - Rehabilitate and Shift Taxiway A - EYE - - - - Rehabilitate West Apron Pavement - Eagle Creek - - - -

Total Eagle Creek: 476 3,270 1,178 3,637

Rehabilitate Hangar Access Taxiways - - - - Install Perimeter Fence Phase III - Metro - - 60 440 Rehabilitate & Extend Taxiway A - Metro 85 1,200 1,415 - Replace Airfield Lighting - Metro 1,024 - 26 - Rehabilitate Apron Pavement - Metro 488 - 128 -

Total Metro: 1,597 1,200 1,629 440

Terminal Building - Hendricks Co. 5 120 300 916 RW 18-36 PCC Overlay Rehabilitation - - - - Runway & Taxiway Pavement Crack Repair - Hendricks 88 - 562 - Update Airport Layout Plan (ALP) - Hendricks Co. - - - - Apron Joint Repair - Hendricks Co. - - - -

Total Hendricks Co.: 93 120 862 916

Structural Slab Replacement - Heliport 1,318 - 166 - Total Heliport: 1,318 - 166 -

TOTAL GRANT/AIP FUNDED ACTIVITIES 3,882 6,184 5,067 5,707

TOTAL RELIEVER ACTIVITIES 4,261 6,184 5,963 6,358

GRAND TOTAL 40,702 103,885 141,910 189,603

11

Airport System Fund Revenues - Appropriated Budget

Ordinance 1-2017 Ordinance 3-2018

2018 2019Budget Budget $ %

Airline Total 47,859,000 46,498,000 (1,361,000) -2.8%

NON-AIRLINE

AIRFIELDFuel Sales 240,000 243,400 3,400 1.4%Other 65,000 - (65,000) -100.0%

RETAIL Food & Beverage 5,786,941 5,443,857 (343,084) -5.9%News & Gifts 1,171,452 1,253,467 82,015 7.0%Specialty Shops 1,387,592 723,849 (663,743) -47.8%Advertising 1,127,971 911,639 (216,332) -19.2%Car Rental 10,671,162 10,505,405 (165,757) -1.6%Other 1,367,961 1,441,123 73,162 5.3%

PARKING & GTCParking 48,019,748 54,318,847 6,299,099 13.1%Ground Transportation Center 1,087,148 1,254,393 167,245 15.4%

PROPERTIES Freight Buildings 1,082,149 1,160,181 78,032 7.2%Ground Leases 6,039,235 5,708,235 (331,000) -5.5%Hangars / Other Buildings 15,419,327 14,454,070 (965,257) -6.3%

RELIEVERS 3,047,644 2,877,869 (169,775) -5.6%

Indianapolis Maint. Center (IMC) 7,891,288 7,490,394 (400,894) -5.1%

OTHER INCOME 230,203 235,703 5,500 2.4%

Total Non-Airline Revenue 104,634,821 108,022,433 3,387,612 3.2%

OTHER REVENUES Special Leases - UAL 13,300,111 - (13,300,111) -100.0%GASB Adjustment (99,761) (99,761) - 0.0%Operating Grant Revenue 500,000 500,000 - 0.0%Passenger Facility Charges (PFC's) 17,238,000 17,753,088 515,088 3.0%Customer Facility Charges (CFC's) 7,284,900 7,422,467 137,567 1.9%Interest 4,252,800 4,125,500 (127,300) -3.0%

TOTAL OPERATING REVENUE 194,969,871 184,221,727 (10,748,144) -5.5%

LESS Inter-fund Transfers (20,252,800) (28,125,500) (7,872,700) 38.9%

TOTAL (net of transfers) 174,717,071 $156,096,227 ($18,620,844) -10.7%

2019 vs 2018 Budget Ordinance

Increase / (Decrease) Variance

12

Capital Improvement Fund - Source of Funds Projections

Ordinance 1-2017 Ordinance 3-2018

2018 2019Budget Budget

Federal and State Grants $9,843,428 11,993,147$

Interest 4,252,800 4,125,500

Operating Fund Transfers 16,000,000 24,000,000

Financing 39,620,000 109,714,000

Proceeds from Land & Property Sales 5,669,000 11,605,000

Capital Improvement Funds 34,614,772 48,562,353 TOTAL $110,000,000 210,000,000$

13

Analysis of Airport System Fund (ASF) Revenue - 2019 Budget

Ordinance 1-2017 Ordinance 3-20182018 2019

Budget Budget $ %

Airline 47,859,000$ 46,498,000$ (1,361,000)$ Airfield 305,000 243,400 (61,600) Retail 21,513,079 20,279,340 (1,233,739) -5.7% Parking 49,106,896 55,573,240 6,466,344 13.2% Properties 22,540,711 21,322,486 (1,218,225) -5.4% Relievers 3,047,644 2,877,869 (169,775) -5.6% Indianapolis Maintenance Center (IMC) 7,891,288 7,490,394 (400,894) -5.1% Other Income 230,203 235,703 5,500 2.4% Special Leases - UAL 13,300,111 - (13,300,111) -100.0%

Operating Grant Revenue 500,000 500,000 - 0.0% Passenger Facility Charges (PFCs) 17,238,000 17,753,088 515,088 3.0% Customer Facility Charges (CFCs) 7,284,900 7,422,467 137,567 1.9% Interest/Other 4,153,040 4,025,739 (127,301) -3.1%

TOTAL OPERATING REVENUE 194,969,871 184,221,727 (10,748,145)

Exclude Pass-through (non-cash amount) (13,300,111) 0

TOTAL OPERATING REVENUE after non-cash items * 181,669,760$ 184,221,727$

* From this total there is an inter-fund transfer of $28.1m in 2019 & $20.3m in 2018 for the Capital Requirement.

Management Comments•

•

•

•

• Passenger Facility Charges are planned to increase $0.5 million (3.0%) based on the planned increase in passenger numbers.

2016 vs 2015 Budget OrdinanceFav / (Unfav) Variance

Airline revenues are planned to decrease $1.4 million (2.8%) attributable to a projected decrease in terminal rental rates ($77.95 vs $92.78) and a decrease in landing fee rates ($1.71 vs $1.85).

Parking revenues are planned to increase $6.5 million (13.2%) based on actual yield trends and the increase in passengers, a $2.00 rate increase for the garage and valet, and a change in the valet operation to report gross revenues rather than net in prior years.

Retail revenue is anticipated to decrease $1.2 million (5.7%) attributable to the terminal refresh project and construction involved for new operators.

Special Leases-UAL is a pass-through and is planned to decrease due to a change in the debt amortization. There is a corresponding decrease in debt services.

$479,103

$500,000

$2,877,869

$4,025,739

$7,422,467

$7,490,394

$17,753,088

$20,279,340

$21,322,486

$46,498,000

$55,573,240

Airfield/Other

Operating Grant Revenue

Relievers

Interest/Other

CFCs

IMC

PFCs

Retail

Properties

Airline

Parking

2019 ASF Revenue Budget by Type

$0

$10

$20

$30

$40

$50

$60

Millions

ASF Revenue Budget - 2019 vs 2018

2019 ASF 2018 ASF

Airfield/Other0.3%

Operating Grant Revenue

0.3%

Relievers1.6%

Interest/Other2.2%

CFCs4.0%

IMC4.1%

PFCs9.6%

Retail11.0%

Properties11.6%

Airline25.2%

Parking30.2%

2019 ASF Revenue Budget by Percentage

14

Analysis of Airport System Fund (ASF) Expenses - 2019 Budget

Ordinance 1-2017 Ordinance 3-20182018 2019

Budget Budget $ %OPERATING AND MAINTENANCE: Personal Services 34,444,010$ 37,154,188$ (2,710,178)$ -7.9% Utilities 10,908,352 10,576,505 331,847 3.0% Contractual Services 25,698,200 25,432,969 265,230 1.0% Supplies & Materials 6,068,550 6,091,943 (23,393) -0.4% Other Charges 1,769,155 1,530,777 238,377 13.5% Capital Expenditures 1,603,520 924,813 678,708 42.3% Environmental Remediation 35,710 23,210 12,500 35.0%

Total Operating Expenses 80,527,497 81,734,406 (1,206,909) -1.5%

DEBT SERVICE: Special Leases - UAL 17,377,278 - 17,377,278 100.0% Interest Payments 37,026,910 35,095,000 1,931,910 5.2% Principal Payments 54,415,500 44,440,000 9,975,500 18.3% Total Debt Service 108,819,688 79,535,000 29,284,688 26.9%

Capital Program Funding 16,000,000 24,000,000

TOTAL AIRPORT SYSTEM FUND APPROPRIATION 205,347,185$ 185,269,406$ 28,077,779$ 13.7%

Exclude Pass-through (non-cash amount) (17,377,278) 0 Exclude Variable Debt reserve (non-cash amount) (11,918,000) (10,730,000) Exclude Other Debt Service Amortization (non-cash amount) 3,231,297 2,823,811

TOTAL AIRPORT SYSTEM FUND after non-cash items 179,283,204$ 177,363,217$

Management Comments

•

•

•

2016 vs 2015 Budget OrdinanceFav / (Unfav) Variance

Personal Services increase of $2.7 million (7.9%). Annual merit and benefit increases of 4.8% as well as planned increases in full time operational staff 3.1%.

Special Leases - UAL is a pass-through and is planned to decrease due to a change in the debt amortization.

2019 budgeted debt service represents scheduled interest and principal payments reflecting lower interest and principal payments than prior year.

$8,570,743

$10,576,505

$25,432,969

$35,095,000

$37,154,188

$44,440,000

Supp/Mtrls/Other/CapExp

Utilities

Contractual Services

Interest Payments

Personal Services

Principal Payments

2019 ASF Expense Budget by Type

$0

$10

$20

$30

$40

$50

$60

Millions

ASF Expense Budget - 2019 vs 20182019 ASF 2018 ASF

Supp/Mtrls/Other/Cap Exp5.3%

Utilities6.6%

Contractual Services 15.8%

Interest Payments21.8%

Personal Services23.0%

Principal Payments27.6%

2019 ASF Expense Budget by Percentage

15