FINANCIAL REPORT (unaudited)

Transcription

1 FINANCIAL REPORT (unaudited) For the Quarter Ended March 31, 2018

2 *** UNAUDITED - FOR INTERNAL REVIEW*** Page Financial Information... 1 Management s Discussion and Analysis Statements of Net Position Statements of Revenues, Expenses and Changes in Net Position Statements of Cash Flows Statements of Fiduciary Fund Net Assets Statements of Changes in Fiduciary Fund Net Assets Notes to the Financial Statements Financial Summary Statistical Highlights Airport Revenues AvPort Airport Operations Million Air FBO Operations Authority Operations Investment Report... 99

3 MANAGEMENT S DISCUSSION AND ANALYSIS This Management Discussion and Analysis (MD&A) of the Albany County Airport Authority (the Authority) provides an introduction of the basic financial statements for the quarter March 31, 2018 with selected comparative information for the quarter ended March 31, 2017 and March 31, Management prepared this unaudited MD&A, which should be read in conjunction with the financial statements, and the notes thereto, which follow in this section. BASIC FINANCIAL STATEMENTS The Authority s basic financial statements include three financial statements: the Statements of Net Position, the Statements of Revenues, Expenses and Changes in Net Position and the Statements of Cash Flows. The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America as promulgated by the Governmental Accounting Standards Board (GASB). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. However, we believe that all disclosures are adequate to make the information presented not misleading. The December 31, 2017 Statements of Net Position and other prior year condensed financial information was derived from the Authority s audited 2017 basic financial statements, as restated to implement recently issued accounting standards, and other unaudited sections of the Authority s 2017 Comprehensive Annual Financial Report, but is not presented with all disclosures required by accounting principles generally accepted in the United States of America. The accompanying unaudited financial statements should be read in conjunction with the audited basic financial statements and the notes thereto, included in our Comprehensive Annual Financial Report for the year ended December 31, 2017 and the notes attached to these statements. In the opinion of our management, adjustments necessary to fairly present our financial position, report total operating revenues, operating expenses, non-operating income and expenses, capital contributions and the changes in net position during the three months ended March 31, 2018 and 2017 and cash flows for the interim periods presented have been included. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year or for any future periods. Also included are the Statements of Fiduciary Fund Net Position and the Statements of Changes in Fiduciary Fund Net Position. The Statements of Net Position depict the Authority s financial position at March 31, 2018 and December 31, 2017, the end of the Authority s previous fiscal year. The Statements report all assets, deferred outflows of resources, liabilities, deferred inflows of resources and net position. Net position is displayed in three components: net investment in capital assets, restricted (distinguished between major categories of restrictions) and unrestricted. The Statements of Revenues, Expenses and Changes in Net Position report total operating revenues, operating expenses, non-operating income and expenses, capital contributions and the changes in net position during the three months ended March 31, 2018 and All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the cash flows. The Statements of Cash Flows present information showing how the Authority s cash and cash equivalents position changed during the three months ended March 31, 2018 and The Statements classify cash receipts and cash payments by Operating Activities, Noncapital Financing Activities, Investing Activities, and Capital and Related Financing Activities. 1

4 The Statements of Fiduciary Fund Net Position is a snapshot of account balances of the Authority s fiduciary fund at March 31, 2018 and December 31, It indicates the assets available for future payments for retiree benefits and any current liabilities that are owed at this time. The Statements of Changes in Fiduciary Fund Net Position, on the other hand, provides a view of current period additions to and deductions from the net position held in the Trust during the three months ended March 31, 2018 and AIRPORT ACTIVITIES HIGHLIGHTS The County of Albany owns the Albany International Airport (the Airport) and entered into an Airport Lease Management Agreement, pursuant to which the County leased the Airport to the Authority for a 40 year term commencing May 16, The Authority employs two firms to manage the daily operations of the Airport: AFCO AvPorts Management LLC, (d/b/a Avports) manages the daily operations of the airport including airfield, terminal, security, ARFF, landside, building and vehicle maintenance and public parking pursuant to a management services agreement. REW Investments, Inc., (d/b/a Million Air) manages the daily operations of the Fixed Based Operations (FBO) of the airport including fuel farm management, commercial aviation into-plane fueling, and ground handling, fueling and hangaring of general aviation aircraft pursuant to a management services agreement. The Authority s revenues are derived primarily from: Airline rates and charges for the use of the Airport s facilities in the form of landing fees, terminal rentals, apron fees and loading bridge charges received from airlines using the Airport; concession fees from vendors serving the passengers including food and beverage, retail and rental cars; public parking fees including surface and garage parking; and FBO activities from general aviation activities. AIRPORT REVENUES Five major factors impact airport revenues: commercial operations, enplanements, FBO operations, concessions and parking: COMMERCIAL OPERATIONS The following shows the major indicators of the total commercial airline activities during the first three months of 2018, 2017 and 2016: Enplanements 332, , ,942 % increase/(decrease) 1.5% 1.0% 11.5% Aircraft Landed Weight 369,475, ,518, ,385,565 % increase/(decrease) -2.4% 0.8% 18.9% Operations (take-offs and landings) Commercial 11,537 11,023 11,124 General Aviation 2,482 2,736 2,965 Military Total 14,798 14,441 14,808 % increase/(decrease) 2.5% -2.5% 14.5% 2

5 Regular scheduled daily passenger flights departing from Albany increased to 63 in March 2018 compared to 59 in March 2017 and 60 in March Carriers Flights Carriers Flights Carriers Flights Jet Service Major Carriers Regional Carriers Commuter Service Regional Carriers Total Published available seats for the first three months of 2018 decreased by 6,879 or 1.6% while the passenger load factor increased to 78% from 81%, resulting in an increase in enplanements for the first three months of The published available seats and the passenger load factors for the first three months of 2018, 2017 and 2016 are below: Total Available Seats 411, , ,601 Passenger Load Factor 81% 78% 80% Landing fee revenues are not sensitive to the number of operations or landed weight because the agreements with the airlines and cargo carriers provides for the Signatory Passenger and Cargo Airlines to fund the operating costs of the Airfield after receiving credit for all airfield revenue. Accordingly, landing fee revenue is sensitive to changes in the annual cost of operating the airfield that fluctuate with the weather and maintenance needs. The change in airline operations and gross landed weight by airline for 2018 compared to 2017 and 2017 compared to 2016 is as follows: 2018 vs vs Change in Change in Change in Change in Operations Landed Weight Operations Landed Weight American (96) 757, ,578,924 Boutique Air 270 1,339, Cape Air (470) (1,609,751) (102) (349,352) Delta (46) 1,252,728 (66) (2,606,690) Jet Blue (6) (381,396) (12) (898,384) One Jet 252 3,107, Southwest (102) (3,654,000) 56 2,686,000 United 168 (9,606,505) 74 (1,021,612) XTRA Airways (4) (248,000) ,000 Total (34) (9,042,727) 92 3,132,886 As of March 31, 2018, two regularly scheduled express mail and various special cargo carriers serve this Airport Mail and Express Cargo Tons 4,371 4,329 4,619 % increase/(decrease) 1.0% -6.3% 1.9% 3

6 ENPLANEMENTS Enplanements for 2018 compared to 2017 increased by 4,815 passengers, compared to an increase of 3,158 for 2017 vs The changes in enplanements by airline, including their express carriers is as follows: 2018 Market Total vs. Total vs. Share Enplanements 2017 Enplanements 2016 American 22.3% 74,347 3,333 71,014 5,582 Boutique Air 0.1% Cape Air 0.8% 2,559 (1,052) 3,611 (55) Delta 13.3% 44, ,419 (2,150) Jet Blue 7.0% 23,187 (64) 23,251 1,540 One Jet 0.3% Southwest 44.1% 146,910 3, ,804 (583) United 12.0% 39,882 (2,825) 42,707 (1,470) XTRA Airways 0.1% 252 (42) Total 100.0% 332,915 4, ,100 3,158 FBO OPERATIONS REW Investments, Inc. (d/b/a Million Air) manages the daily operations of the FBO. A summary of the operating revenues and expenses, the gallons of Jet A and Aviation Gasoline sold, gallons of glycol sold and sprayed and the Jet A transferred to the commercial and cargo airlines is as follows for 2018, 2017 and 2016: 2018 vs vs Revenues $ 2,881, % $ 2,333, % $ 2,023,059 Expenses (inc. cost of sales) $ 2,437, % $ 2,022, % $ 1,696,713 Retail Gallons Sold Jet A 225, % 204, % 236,197 AvGas 9, % 10, % 12,775 Commercial AvGas 22, % 37, % 39,188 Glycol Gallons - Consortium 68, % 63, % 32,563 Glycol Gallons - Sprayed 61, % 33, % 16,753 Jet A Fuel Into-Plane Gallons 4,771, % 4,605, % 4,505,901 4

7 CONCESSIONS Concession revenues for the first three months of 2018 were $1,380,767, a 3.9% decrease from the first three months of Concession revenues for 2017 were 3.1% higher than Concession revenue highlights for the first three months of 2018 compared to 2017 and 2016 are as follows: 2018 vs vs Rental Car Revenues Sales $ 8,152, % $ 8,504, % $ 8,247,310 Authority Revenues $ 776, % $ 850, % $ 845,959 Food & Beverage Sales $ 1,956, % $ 1,903, % $ 1,835,549 Authority Revenues $ 221, % $ 183, % $ 177,404 Retail Sales $ 867, % $ 856, % $ 767,560 Authority Revenues $ 184, % $ 184, % $ 178,708 Total Authority Concession Revenues $ 1,380, % $ 1,437, % $ 1,394,216 Concession Revenue per Enplanement $ % $ % $ 4.29 PARKING The Airport directly manages all on-airport parking operations which at March 31, 2018 consisted of 222 short-term garage/surface, 1,912 long-term garage, 1,789 long-term surface, and 2,763 remote shuttle served parking spaces. Revenue for first three months of 2018 compared to the first three months of 2017 and 2016 are as follows: 2018 vs vs Public Parking Revenues $ 4,007, % $ 4,071, % $ 3,994,768 # of Vehicles Parked 148, % 152, % 149,227 Parking Revenue per Enplanement $ % $ % $

8 SUMMARY OF REVENUES, EXPENSES AND CHANGES IN NET POSITION The changes in net position over time may serve as a useful indicator of changes in the Authority s financial position. A summary of the Authority s change in net position for the quarter ended March 31 is below: Operating Revenues $ 13,320,978 $ 12,589,249 $ 11,933,371 Operating Expenses (9,969,981) (9,212,384) (7,991,966) Revenues in excess of expenses before depreciation 3,350,997 3,376,865 3,941,405 Depreciation (3,526,875) (3,526,875) (3,514,379) Loss before non-operating income and expenses (175,878) (150,010) 427,026 Non-Operating income and (expenses), net 527, , ,031 Income before capital contributions 351, , ,057 Capital Contributions ,027 Net Position Increase in Net Position 351, , ,084 Net position, beginning of year 211,113, ,454, ,948,796 Net position, end of quarter $ 211,465,055 $ 210,644,156 $ 208,580,880 The Authority s operating revenues and expenses include the sales and cost of sales of fuel purchased and sold to general aviation customers through the FBO and also revenues for deicing activities. Gallons of jet fuel sold were 236,197, 204,019 and 225,816 for the first three months of 2016 to 2018, respectively. The FBO provides fueling services for all commercial airlines at the Airport. Some of the airlines provide their own aircraft deicing services. Accordingly, commercial aircraft deicing service revenue is sensitive to both demand for services and need for services based upon weather conditions. The total gallons of sprayed deicing services delivered in the first three months of 2016 through 2018 were 16,753, 33,986 and 61,444 gallons, respectively. The table below summarizes FBO revenues, expenses and net revenues for the first three months of 2018, 2017 and 2016: FBO revenues $ 2,881,569 $ 2,333,367 $ 2,023,059 FBO expenses 2,437,798 2,022,788 1,696,713 FBO net revenues $ 443,771 $ 310,579 $ 326,346 6

9 OPERATING REVENUES AND NON-OPERATING INCOME HIGHLIGHTS Total revenues for the first three months of 2018 were $0.9 million or 6.4% greater than the first three months of Fixed Based Operations revenues increased in the first three months of 2018 due to higher deicing revenues. Allocation of YTD 2018 Operating Revenues by Category Operating Revenues Airfield $ 2,036,257 $ 1,877,678 $ 1,810,199 Fixed Based Operations 2,881,569 2,333,367 2,023,058 Terminal 1,809,091 1,679,160 1,591,687 Ground Transportation 4,138,229 4,177,263 4,096,482 Concessions 1,380,767 1,437,101 1,394,216 Other 1,075,065 1,084,680 1,017,729 Non-Operating Income Passenger Facility Charges 1,252,052 1,233,934 1,304,029 Grant Income 183,409 31,840 70,400 Improvement Charges 92,100 92,100 92,100 Interest Income - 1, Total $ 14,848,539 $ 13,948,889 $ 13,400,536 Percentage of Increase 6.4% 4.1% 5.8% 7

10 OPERATING EXPENSES AND NON-OPERATING EXPENSES HIGHLIGHTS Total expenses for the first three months of 2018 increased $0.6 million or 4.2% as compared to the first three months of Higher costs for Fixed Based Operations deicing supplies, higher snow removal supplies and services all accounted for the increase in expenses during 2018 as compared to Allocation of YTD 2018 Operating Expenses by Category Operating Expenses Personal services $ 2,588,479 $ 2,614,482 $ 2,254,883 Employee benefits 1,342,878 1,252,278 1,139,218 Utilities & communications 891, , ,776 Purchased services 1,902,122 1,841,833 1,594,200 Material & supplies 2,997,751 2,349,971 1,704,590 Administration 214, , ,201 Non-capital equipment 11,036 29,572 78,098 Depreciation 3,526,875 3,526,875 3,514,379 Non-Operating Expenses Interest Expense 983,095 1,152,595 1,254,047 Amortization of Bond Insurance Premiums 17,077 22,817 25,087 Air Service Incentive Program 21,314 23,680 - Total $ 14,497,028 $ 13,914,671 $ 12,785,479 Percentage of Increase/(Decrease) 4.2% 8.8% -4.8% 8

11 FINANCIAL POSITION SUMMARY The Statements of Net Position depict the Authority s financial position as of one point in time December 31 and reflects the residual difference between all assets, deferred outflows of resources, liabilities and deferred inflows of resources of the Authority. Net position represents the residual interest in the Authority s assets after deducting liabilities. The Authority s net position was $211.4 million at March 31, 2018, a $4.8M decrease from December 31, $5.2M of the decrease was due to a change in accounting principle for OPEB effective January 1, A condensed summary of the Authority s total net position at March 31, 2018 and December 31, 2017 and 2016 is set forth below: March 31, 2018 December 31, 2017 December 31, 2016 ASSETS Capital assets $ 241,352,080 $ 245,397,366 $ 249,869,538 Other assets 57,595,158 55,013,670 53,736,552 Total Assets 298,947, ,411, ,606,090 DEFERRED OUTFLOWS OF RESOURCES 6,091,790 4,722,111 5,918,434 LIABILITIES Current (payable from unrestricted assets) 4,871,012 6,017,006 7,063,124 Current (payable from restricted assets) 10,907,581 11,366,663 9,721,183 Noncurrent liabilities 76,890,071 70,583,675 81,509,179 Total Liabilities 92,668,664 87,967,344 98,293,486 DEFERRED INFLOWS OF RESOURCES 905, , ,520 NET POSITION Net investment in capital assets 168,939, ,661, ,626,920 Restricted 25,639,814 22,238,003 21,191,423 Unrestricted 16,885,541 21,401,539 18,636,175 Net Position $ 211,465,055 $ 216,300,740 $ 210,454,518 Net position is comprised of three components as follows: Investment in capital assets (e.g., land, buildings, improvements, and equipment), less the related indebtedness outstanding used to acquire those capital assets, represents the largest portion of the Authority s net position (79.9% at March 31, 2018). The Authority uses these capital assets to provide services to the airlines, passengers and to service providers and users located at the Airport; consequently, these assets are not available for future spending. Although the Authority s net investment in capital assets is net of related debt, the resources required to repay this debt annually are paid from operations, since it is unlikely that the capital assets will be liquidated to pay liabilities. Restricted net position (12.1% at March 31, 2018), principally representing bond reserves and PFC funds, are restricted as to use pursuant to bond resolutions and Federal regulations. The restricted component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. 9

12 Unrestricted net position totaling $16.9 million (8.0% at March 31, 2018) are available to meet any of the Authority s ongoing obligations. The unrestricted component of net position is the net amount of the assets, deferred outflows of resources, liabilities and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. AIRLINE SIGNATORY RATES AND CHARGES The Authority and airlines entered into a Use and Lease Agreement ( Agreement ) effective January 1, 2016 for five years, with an option for a five-year renewal, which establishes how the airlines that signed the Agreement will be assessed annual rates and charges for their use of the Airport. In the Agreement, signatory airlines have the option to designate some or all of their affiliate carriers as signatory airlines. This entitles the affiliates to signatory rates and charges for use of the Airport. As of March 31, 2018, signatories in the Agreement include six commercial, nineteen affiliate carriers and two cargo airlines. The Agreement with the signatory airlines is based on a hybrid rates and charges methodology. A residual cost methodology is used for the airfield and a commercial rental rate methodology for the terminal. The apron charge is based on a 10% allocation of total airfield costs and loading bridge rental rates is based on total actual operating costs for all the loading bridges. The resulting funds remaining each year are split fifty/fifty between the Authority and the signatory airlines. Each year the Authority prepares and issues an actual airline rates and charges analysis report in accordance with the Agreement and financial statements prepared in accordance with GAAP as audited by independent public accountants as of December 31. The Authority has the ability under the Agreement to adjust airline rates and charges at any time throughout the year to ensure adherence to all financial covenants in its bond resolutions. The Authority can impose a Capital Charge Coverage equal to 25% of its required debt service and also apply the Airline Share of Revenue sharing to meet debt service coverage if needed. Capital Charge Coverage provides for revenues less expenses, to be not less than one-hundred twenty-five percent (125%) of annual debt service. If needed to meet debt service coverage, the Airline Revenue Sharing is first suspended. The Authority may also impose Extraordinary Coverage Protection, if necessary to meet the covenant debt service coverage ratio. The final rates and charges, after all year-end settlement adjustments and the revenue sharing allocations in accordance with the definitions and formulas contained in the Agreement with the signatory airlines are as follows: Budget Actual Actual Landing Fees (per 1,000 lbs. MGLW) $ 3.33 $ 3.12 $ 2.73 Terminal Rental Rate (per square foot) $ $ $ Apron Fees (per square foot) $ 1.38 $ 1.33 $ 1.19 Loading Bridge (annual rate) $ 40,849 $ 47,237 $ 40,383 Airline Airport Cost per Enplanement $ 7.17 $ 6.57 $ 6.00 Revenue Sharing Credit $ 2,002,289 $ 2,439,847 $ 3,137,355 10

13 CASH MANAGEMENT POLICIES AND CASH FLOW ACTIVITIES All cash receipts are initially deposited daily into collateralized or insured bank accounts. After initial deposit of receipts, all funds are transferred to various segregated bank accounts comprising the various funds defined in the Authority s Master Bond Resolution. The Authority s temporarily idle cash is maintained in collateralized or insured bank accounts consistent with the Authority s liquidity, available short-term investment opportunities, and desired level of risk. The Authority s maintains some debt service reserves in United States Treasury obligations. All deposits and investments are in compliance with the laws of the State and the Cash Management and Investment Policy adopted by the Authority. Cash equivalents represent cash-on-hand, bank deposits and liquid investments with a maturity of three months or less. The following shows a summary of the major sources and uses of cash and cash equivalents for the first three months of 2018, 2017 and 2016: Cash flows from: Operating Activities $ 3,220,832 $ 3,153,153 $ 4,711,954 Non Capital Financing Activities 183,409 31,840 70,400 Investing Activities 4,286 6,052 4,104 Capital and related financing activities 792, ,200 1,359,299 Net increases in cash and cash equivalents 4,201,122 3,473,245 6,145,757 Cash and Cash Equivalents: Beginning of period 47,905,608 48,024,342 40,138,544 End of period $ 52,106,730 $ 51,497,587 $ 46,284,301 The Authority s available cash and cash equivalents decreased during the first three months of 2018 by $4,201,122. Cash and cash equivalents as of March 31, 2018, 2017 and 2016 are composed of: Funds available for unrestricted operations $ 23,632,031 $ 22,378,140 $ 19,598,790 Restricted for: Capital Projects 2,703,019 4,437,491 3,488,186 PFCs available for debt service payments 10,608,619 8,843,214 7,150,906 Revenue bond reserves 14,142,307 14,938,330 14,934,742 Other restrictions 1,020, ,412 1,111,677 Total $ 52,106,730 $ 51,497,587 $ 46,284,301 11

14 CAPITAL ACTIVITIES The enabling legislation creating the Authority set forth that every five years the Authority must submit to the County legislature for approval a capital plan for the subsequent five year period. The plan for was approved by the County on December 1, The original plan provided for total spending of up to $120.5 million over five years of which $61 million is eligible for 95% grant funding. On May 8, 2017, the County of Albany approved an amendment to the capital plan to reallocate certain projects and increase total authorized by $22 million to a new total of $142.5 million. The plan does not represent a firm commitment of the Authority. The Authority has included every known possible project that could conceivably occur during the five year period for disclosure purposes. During the remainder of the capital plan, as amended, the Authority may issue additional debt for projects not eligible for grant funding. There is no assurance that future Federal or State grant funds will be awarded to the Authority as anticipated in the plan. At March 31, 2018, the Authority has $8.0 million outstanding capital commitments. Approved projects requiring additional financing in the plan are very likely to be deferred. The following is a summary of the approved capital plan including the activity through March 31, 2018: Total Total Plan 2019 Plan Through Approved Projects Airfield $ 34,520,000 $ 6,656,498 Terminal 14,000,000 7,910,493 Landside 60,000,000 15,490,114 Major Equipment 12,000,000 3,621,694 Total $ 120,520,000 $ 33,678,799 Funding Sources Federal Funds $ 61,020,000 $ 16,999,996 State Funds 6,250,000 5,249,286 Debt Issuances 34,500,000 - Authority Funds 18,750,000 11,429,517 Total $ 120,520,000 $ 33,678,799 LONG-TERM DEBT ADMINISTRATION The Authority issued Airport Revenue Bonds to provide funds for the acquisition and construction of major capital facilities. Airport Revenue Bonds are direct obligations and are pledges by the full faith and credit of the Authority. Certain outstanding bonds may be redeemed prior to their normal maturity dates in accordance with the terms of the related bond indentures. The Authority has never defaulted on any principal or interest payments. In accordance with Section 2785 of the New York Public Authorities Law, the Authority may issue Bonds, Notes and Other Obligations up to $285 million outstanding at any time plus certain amounts issued for refunding purposes. The total Authority principal debt outstanding at March 31, 2018 for General Airport Revenue Bonds (GARB) was $77,318,000, the same as December 31, The aggregate par amount of 12

15 bonds issued by the Authority and bond related debt owed to the County of Albany outstanding as of March 31, 2018 and December 31, 2017 is summarized in the following table: Outstanding Outstanding Issued at at Authority Revenue Bonds 1999 NYS EFC $ 7,895,303 $ 1,128,000 $ 1,128, Refunding Series A & B 109,855,000 62,845,000 62,845, Refunding Series A & B 14,395,000 13,345,000 13,345,000 Total Authority Debt Obiligations $ 117,750,303 $ 77,318,000 $ 77,318,000 In the table above, the bonds and debt obligation are presented on a stated par-amount basis. Under generally accepted accounting principles certain items associated with the debts above are deferred and amortized into future periods by subtracting or adding the deferred items to the stated par amounts outstanding and expensing those deferred items in future periods as the debt matures using a systematic and rational method that conforms with generally accepted accounting described in Note 2 to the Financial Statements. The reported amount of bonds issued by the Authority that was outstanding as of December 31, 2017, additions and/or deletions during the first three months of 2018, and the balances reported at March 31, 2018 with adjustments to the reported value required by generally accepted accounting principles is summarized in the following table: Outstanding Outstanding at Additions Deletions at Authority Revenue Bonds/Debt Obligations Bonds Payable 1999 NYS EFC $ 1,128,000 $ - $ - $ 1,128, Series A Refunding 62,845, ,845, Series A & B Refunding 13,345, ,345,000 Total Bonds Payable 77,318, ,318,000 Deferred Loss on Refunding (4,084,312) - 263,102 (3,821,210) Unamortized Premiums/Discounts (net 2,248,605 - (166,838) 2,081,767 Net Bonds Payable 75,482,293-96,264 75,578,557 REFUNDING BONDS ISSUED IN 2017 On April 13, 2017 the Authority completed the marketing and pricing for the sale of its Series 2017 Bonds in the total par amount of $14,395,000 of which $7,795,000 were sold as Series 2017A Non-AMT (not subject to any Federal Tax) and $6,600,000 were sold as Series 2017B AMT (subject to the Federal Alternative Minimum Tax). The Series 2017 Bonds were used, along with other funds of the Authority, to fully refund the Authority s Series 2003A, Series 2006A, Series 2006B, and Series 2006C Bonds in the aggregate amount of $16,490,000 (the Refunded Bonds). 13

16 At March 31, 2018 the Authority maintained debt service reserve funds in the amount of $11.1 million and Passenger Facility Charge Funds in the amount of $10.6 million, both of which are restricted to repayment of debt. Thus, the Authority s direct obligations outstanding, net of funds restricted for the repayment of debt, was $55.6 million in aggregate par amount of bonds outstanding. The graph and table below presents combined annual debt service to maturity as of March 31, 2018: Year/Debt Service 2018 $ 12,966, $ 9,600, $ 1,085, ,385, ,594, , ,686, ,608, , ,694, ,089, , ,699, ,096, , ,707, ,084, ,400 OTHER POSTEMPLOYMENT BENEFITS (OPEB) TRUST In 2009 the Authority created the Albany County Airport Authority OPEB Trust to receive, accumulate, and administer funds to pay expenses for its retired employees who are eligible to receive medical insurance in retirement. The Trust is a legally separate component unit of the Authority. Under generally accepted accounting principles in effective through December 31, 2017, the unfunded liability for OPEB benefits was not reported on the employers Statement of Net Position. Effective January 1, 2018 the Authority implemented Government Accounting Standards Board Statement Number 75 Accounting and Reporting for Postemployment benefits Other Than Pensions (GASBS 75). Among other things, GASBS 75 requires employers to include the actuarially determined unfunded OPEB liability on the reporting employer s Statement of Net Position. GASBS 75 also requires the Authority to report the cost of certain factors, 14

17 activities and events effecting the reported unfunded liability as deferred inflow or deferred outflows. The cumulative effect of reporting GASBS 75 effective January 1, 2018 was to reduce the previously reported Authority s Net Position reported as of December 31, 2017 by $5.2 million as of January 1, The Authority did not restate the 2017 column to show the effects of GASBS 75 on 2017 reported balance because it was not practicable to do so at this time. The effects were reported as the cumulative effect of a changing in accounting principle on the Statement of Revenues, Expenses and Changes in Net Position for the three months ended March 31, PASSENGER FACILITY CHARGE (PFC) The Authority initially received approval from the FAA to impose a PFC of $3.00 per enplaned passenger beginning March 1, 1994, not to exceed $40,726,364, principally to finance the Terminal Improvement Program. During 1996, the Authority requested and received approval to increase the amount of PFCs to $116,888,308 to be collected through the year Effective September 1, 2009, the Authority implemented an approved change in the PFC collection from $3.00 per passenger to $4.50 per passenger, with a current estimated collection period through Through March 31, 2018, the Authority has collected PFCs, including interest earnings thereon, totaling $99,569,980, or 85.2% of the total authorized. Passengers pay PFCs on the first two and last two portions of any trip. No PFCs are collected from nonrevenue passengers such as a passenger using a frequent flier award ticket. The Authority calculates that it is collecting PFCs on approximately 86.7% of its enplanements. Additional information about PFC activity can found under Note 2 Summary of Significant Accounting Policies in the Notes to the Financial Statements. CREDIT RATINGS AND BOND INSURANCE The table below presents the enhanced and underlying ratings on each of the Authority s outstanding bonds. Moody's/Fitch/S&P/Kroll Moody's/Fitch/S&P Series * Bond Insurer Enhanced Rating Underlying Rating Series 2010A AGMC A2/NR/AA/AA+ A3/A-/A- 2017A uninsured N/A A3/A-/A- 2017B uninsured N/A A3/A-/A- * Not all maturities within a Series are insured. NR = Not Rated Fitch Ratings has withdrawn its insured rating of all bonds insured by AGMC effective February 25, Moody s lowered their rating of AGMC from A3 to A2 on January 17, Standard and Poor s upgraded their enhanced rating of AGMC from AA- to AA on March 18, On March 24, 2017, Standard and Poor s raised the Authority s underlying credit rating from BBB+ to A-. On January 23, 2018 AGMC received a rating of AA+ from Kroll Bond Rating Agency. The Authority s underlying credit ratings are: Moody s Investors Service A3, Fitch Ratings A- and Standard and Poor s A-. 15

18 RESERVES AND DEBT SERVICE COVERAGE Under the Authority s master bond resolution adopted in 1997, it is required to maintain an operating reserve equal to two months operating expenses. At March 31, 2018 the reserve requirement was $5.7 million and for which the Authority had $9.4 million on hand. The Authority also had $13.4 million in its airport Development Fund which can be used to restore a deficiency in any other fund and it had a repair and replacement reserve fund of $500,000. Also provided for in the bond resolution for each bond issue, the Authority maintains debt service reserve funds. As of March 31, 2018 the debt service reserve funds totaled $11.1 million. FINANCIAL STATEMENTS The Authority s financial statements are prepared on an accrual basis of accounting in accordance with generally accepted accounting principles promulgated by the Governmental Accounting Standards Board (GASB). The Authority operates as a single enterprise fund with revenues recognized when earned, not when received. Expenses are recognized when incurred, not when they are paid. Capital assets are capitalized and (except land) are depreciated over their estimated useful lives. Certain funds are reported as restricted based upon constraints placed on their use by contributors, grantors and debt covenants. See the Notes to the Financial Statements for a summary of the Authority s significant accounting policies. REQUEST FOR INFORMATION The Authority s basic financial statements are designed to provide detailed information on the Authority s operations and to the Authority s Board, management, investors, creditors, customers and all others with an interest in the Authority s financial affairs and to demonstrate the Authority s accountability for the assets it controls and the funds it receives and expends. Questions concerning any of the information provided in this report or any request for additional information should be addressed to the Chief Financial Officer by boreilly@albanyairport.com or in writing to, Albany County Airport Authority, Administration Building, Suite 204, Albany, NY Respectfully submitted, William J. O Reilly, CPA Chief Financial Officer 16

19 Albany County Airport Authority Statements of Net Position As of March 31, 2018 and December 31, 2017 ASSETS March 31, 2018 December 31, 2017 CURRENT ASSETS Unrestricted Assets: Cash and cash equivalents $ 23,632,031 $ 23,090,998 Accounts receivable - net 1,960,936 2,262,330 Due from County of Albany - 303,478 Prepaid expenses 612,315 1,061,507 Total Unrestricted Assets 26,205,282 26,718,313 Restricted Assets: Capital Funds: Cash and cash equivalents 2,703,019 2,484,987 Grant funds receivable 1,448,838 1,688,826 Passenger Facility Charge Funds: Cash and cash equivalents 10,608,619 10,439,296 Passenger Facility Charges receivable 563, ,712 Revenue Bond Funds: Cash and cash equivalents 14,142,307 10,909,819 Investments 277, ,389 Accrued interest receivable 1,809 1,809 ANCLUC Funds: Cash and cash equivalents 196, ,857 Concession Improvement Funds: Cash and cash equivalents 823, ,651 Total Restricted Assets 30,766,447 27,346,346 Total Current Assets 56,971,729 54,064,659 NON-CURRENT ASSETS Bond Insurance Premiums 352, ,098 Net Assets held in trust for OPEB - 308,505 Prepaid expenses 271, ,408 Capital Assets: Land and easements 48,812,345 48,812,345 Buildings, improvements and equipment, net of depreciation 189,517, ,044,204 Construction in progress 3,022,406 3,540,817 Total Capital Assets 241,352, ,397,366 Total Non-Current Assets 241,975, ,346,377 Total Assets 298,947, ,411,036 DEFERRED OUTFLOWS OF RESOURCES Refunding 3,821,210 4,084,309 OPEB Expenses 1,632,778 - Pension Expenses 637, ,802 Total Deferred Outflows of Resources 6,091,790 4,722,111 17

20 Albany County Airport Authority Statements of Net Position As of March 31, 2018 and December 31, 2017 LIABILITIES AND NET POSITION March 31, 2018 December 31, 2017 CURRENT LIABILITIES Payable from Unrestriced Assets: Accounts payable $ 509,108 $ 609,926 Accrued expenses 4,233,184 5,407,080 Due to County of Albany 128,720 - Total Payable from Unrestricted Assets 4,871,012 6,017,006 Payable from Restricted Assets: Construction contracts payable 199,114 1,478,791 Construction contract retainages 260, ,993 Accrued interest payable 150, ,879 Accrued Principal & Interest 877,733 - Current maturities of long - term debt 9,419,000 9,419,000 Total Payable From Restricted Assets 10,907,581 11,366,663 Total Current Liabilities 15,778,593 17,383,669 NON-CURRENT LIABILITIES Bonds and other debt obligations 69,980,766 70,147,604 Net OPEB liability 6,473,234 - Net pension liability - proportionate share 436, ,071 Total Non-Current Liabilities 76,890,071 70,583,675 Total Liabilities 92,668,664 87,967,344 DEFERRED INFLOWS OF RESOURCES Concession Improvement funds 823, ,651 Pension 81,412 81,412 Total Deferred Inflows of Resources 905, ,063 NET POSITION Net investment in capital assets 168,939, ,661,198 Restricted: Bond reserve funds 14,270,626 11,038,138 Passenger facility charge funds 11,172,331 11,003,008 Other restricted funds 196, ,857 Total Restricted: 25,639,814 22,238,003 Unrestricted 16,885,541 21,401,539 Net Position 211,465, ,300,740 18

21 Albany County Airport Authority Statements of Revenues, Expenses and Changes in Net Position For the Three Months Ended March 31, 2018 and March 31, 2017 March 31, 2018 March 31, 2017 Operating Revenues Airfield $ 2,036,257 $ 1,877,678 Fixed Based Operations 2,881,569 2,333,367 Terminal 1,809,091 1,679,160 Concessions 1,380,767 1,437,101 Ground transportation 4,138,229 4,177,263 Other revenue 1,075,065 1,084,680 Total Operating Revenues 13,320,978 12,589,249 Operating Expenses Airfield 988, ,685 Fixed Based Operations 2,258,599 1,868,457 Terminal 1,527,104 1,471,336 Loading bridges 90,745 73,937 Landside 1,593,734 1,462,923 Public safety 1,025, ,669 Aircraft Rescue and Fire Fighting 443, ,119 Vehicle maintenance 404, ,345 Administration 1,637,915 1,671,913 Total Operating Expenses 9,969,981 9,212,384 Revenues in excess of expenses before depreciation 3,350,997 3,376,865 Depreciation 3,526,875 3,526,875 Loss Before Non-Operating Income and Expenses (175,878) (150,010) Non-Operating Income and (Expenses) Passenger Facility Charges 1,252,052 1,233,934 Grant income 183,409 31,840 Improvement charges 92,100 92,100 Interest income - 1,766 Insurance Recoveries 76,654 - Insured Expenses (76,654) - Interest expense (983,095) (1,152,595) Amortization of bond insurance premiums (17,077) (22,817) Total Non-Operating Income and (Expenses) 527, ,228 Income before Capital Contributions 351,511 34,218 Capital Contributions - - Net Position Increase in Net Position 351,511 34,218 Net Position, Beginning of Year 216,300, ,454,518 Cumulative change in accounting principle (5,187,196) - Net Position, Beginning of Year, as restated 211,113, ,454,518 Net Position, End of Year $ 211,465,055 $ 210,488,736 19

22 Albany County Airport Authority Statements of Cash Flows For the Three Months Ended March 31, 2018 and March 31, 2017 March 31, 2018 March 31, 2017 Cash Flows From Operating Activities Cash received from providing services $ 13,622,372 $ 13,265,503 Cash paid to suppliers (10,082,991) (9,807,798) Cash paid to employees (318,549) (304,552) Net Cash Provided By Operating Activities 3,220,832 3,153,153 Cash Flows From Noncapital Financing Activities Grant income 183,409 31,840 Net Cash Provided By Noncapital Financing Activities 183,409 31,840 Cash Flows From Investing Activities Interest received - 1,766 Interest on passenger facility charges 4,286 4,286 Net Cash Provided by Investing Activities 4,286 6,052 Cash Flows From Capital and Related Financing Activities Purchase of property and equipment (818,404) (1,314,660) Interest paid (9,101) (11,118) Concession improvement funds 40,246 27,593 Improvement charges 92,100 92,100 Capital Grants 239, ,637 Passenger facility charges 1,247,766 1,229,648 Net Cash Provided By Capital and Related Financing Activities 792, ,200 Net Increase in cash and cash equivalents 4,201,122 3,473,245 Cash and cash equivalents, beginning of year 47,905,608 48,024,342 Cash and cash equivalents, end of year $ 52,106,730 $ 51,497,587 Reconciliation of Operating Loss to Net Cash Provided By Operating Activities: Loss before non-operating income and expenses $ (175,878) $ (150,010) Adjustments to reconcile loss from operations to net cash provided by operating activities: Depreciation 3,526,875 3,526,875 Decrease/(Increase) in assets: Accounts receivable 301, ,254 Due from County of Albany 303, ,419 Net Assets held in trust for OPEB - 27,097 Prepaid expenses 449, ,127 Deferred OPEB Expenses (38,235) - Deferred Pension Expenses - - Increaase/(Decrease) in liabilities: Due from County of Albany 128,720 - Accounts payable and accrued expenses (1,274,714) (1,467,609) Net Cash Provided By Operating Activities $ 3,220,832 $ 3,153,153 Noncash Capital and Related Financing Activities: Capital Assets and related receivables $ 239,988 $ 258,637 Total Noncash Capital and Related Financing Activities $ 239,988 $ 258,637 20

23 Albany County Airport Authority OPEB Trust Statements of Fiduciary Fund Net Position As of March 31, 2018 and December 31, 2017 March 31, 2018 December 31, 2017 ASSETS Cash and cash equivalents $ 2,058,921 $ 2,058,413 Total Assets 2,058,921 2,058,413 DEFERRED OUTFLOWS OF RESOURCES - - Total Deferred Outflows of Resources - - LIABILITIES - - Total Liabilities - - DEFERRED INFLOWS OF RESOURCES - - Total Deferred Inflows of Resources - - NET POSITION Net Position - Restricted for OPEB $ 2,058,921 $ 2,058,413 21

24 Albany County Airport Authority OPEB Trust Statements of Changes in Fiduciary Fund Net Position For the Three Months Ended March 31, 2018 and March 31, 2017 March 31, 2018 March 31, 2017 Additions to Net Position Attributed to: Contributions Employer $ - $ - Interest Income Total Additions Deductions from Net Position Attributed to: Retirement benefits - - Administrative expenses - - Total Deductions - - Increase in Net Position Net Position - Restricted for OPEB, Beginning of Year 2,058,413 1,900,888 Net Position - Restricted for OPEB, End of Year $ 2,058,921 $ 1,901,357 22

25 ALBANY COUNTY AIRPORT AUTHORITY Notes to Financial Statements March 31, 2018 NOTE 1 - Organization and Reporting Entity Organization: The Albany County Airport Authority (Authority), a body corporate and politic, constituting a public benefit corporation, was established by the State of New York (State) August 4, 1993, pursuant to the provisions of Chapter 686 of the Laws of 1993 as set forth in Title 32 of the State s Public Authorities Law. As a public benefit corporation, the Authority is independent, distinct from, and not an agent of the State or any other of the State s political subdivisions, including the County of Albany (County). The Authority consists of seven members, four appointed by the majority leader of the County Legislature and three by the County Executive, who jointly designate one of the seven members as chairperson, and all with approval of the County Legislature. The Authority members serve for a term of four years or until their successor is appointed, except that any person appointed to fill a vacancy will be appointed to serve only the unexpired term. Members of the Authority are eligible for reappointment. On March 15, 1994, the Authority and the County entered into an Interim Agreement, whereby the County granted, and the Authority accepted, sole possession, use, occupancy and management of the Albany International Airport (Airport), including all rights, interest, powers, privileges and other benefits in each and every contract relating to the maintenance, operation, leasing, management or construction of the Airport, and all other rights, privileges or entitlement necessary to continue to use, operate and develop the Airport. The Authority and the County entered into a permanent Airport Lease Agreement, dated December 5, 1995, which upon its approval by the Federal Aviation Administration (FAA) became effective on May 16, 1996 for a term of forty (40) years, whereby the Authority has the exclusive right to operate, maintain and improve the Airport and do anything else permitted by law, subject only to the restrictions and conditions stated in such Airport Lease Agreement and in accordance with applicable Federal, State and local laws. Pursuant to the State enabling Legislation, the Authority may not undertake any capital project (see Note 15), other than the redevelopment project described in the enabling legislation, known as the Terminal Improvement Program, unless the project has first been approved by the County as part of a five-year Capital Improvement Program. For these purposes, the term capital project is defined as the construction, reconstruction or acquisition of airport or aviation facilities. Prior to March 15, 1994, the Airport operated as a fund of the County. As of March 15, 1994 the County transferred the use of all assets and substantially all liabilities of the County s Airport Enterprise Fund to the Authority. These assets and liabilities were recorded by the Authority at a Net Asset value equal to $46,824,

26 The Authority is not subject to Federal, State or local income, property or sales taxes, except for property taxes due on properties acquired by the Authority until they are removed from the tax rolls as of the next assessment date. However, the Authority may agree to make certain payments in lieu of taxes for real property owned or used by the Authority for purposes other than public aviation purposes and under other limited circumstances. The Authority has contracted with AFCO AvPorts Management LLC, (d/b/a Avports), to manage the daily operations of the airport under a three year term expiring December 31, The Authority has also contracted with REW Investments, Inc., (d/b/a Million Air), to manage the fixed based operations of the airport under a three year term expiring August 31, Both agreements are renewable with the approval of both parties. Reporting Entity: The Authority meets the criteria set forth in generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB) for inclusion as a component unit within the County s basic financial statements based on the County s responsibility for the appointment of the Authority members, and their approval of capital programs and certain debt issuances. As such, the Authority is included in the County s basic financial statements. The accompanying financial statements present the financial position and the changes in net position and cash flows of the Authority only. The Authority is not involved in any joint ventures. The Authority has established a written, single employer, defined benefit plan to provide healthcare benefits to eligible former employees and/or their qualifying dependents. The Authority also established a legally separate trust known as the Albany County Airport Authority OPEB Trust to receive and manage contributions from the Authority to fund its obligations for retiree health care benefits under the written plan. The Albany County Airport Authority OPEB Trust is included in the Authority s financial statements as a separate Fiduciary Fund of the Authority under accounting principles promulgated by GASB. NOTE 2 - Summary of Significant Accounting Policies Basis of Accounting: The accompanying financial statements have been prepared in conformity with generally accepted accounting principles (GAAP) for state and local governments. GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting principles for state and local governments in the United States of America. The Authority s operations are presented as a single enterprise fund. Enterprise funds distinguish operating revenues and expenses from non-operating items in accordance with the flow of economic resources measurement focus and the accrual basis of accounting. All assets, liabilities, net position, revenues, and expenses are accounted for through a single enterprise fund with revenues recorded when earned and expenses recorded at the time liabilities are incurred. Revenues from airlines, FBO operations, concessions, property rentals, operating permits, and parking fees are reported as operating revenues. All expenses related to operating the Airport are reported as expenses. Passenger facility charges, noncapital grants, capital improvement charges, interest and investment income 24

27 are reported as non-operating income. Interest expense, financing costs and grant expenses are reported as non-operating expenses. Capital contributions, special and extraordinary items are reported separately after non-operating revenues and non-operating expenses. Cash, Cash Equivalents and Investments: The deposit and investment of Authority monies is governed by provisions in its enabling legislation and by a Cash Management and Investment Policy adopted by the Authority on September 13, 1994 and last amended March 26, Any bank or trust company with a full service office in the County is authorized for the deposit of monies. Monies not needed for immediate expenditure may be invested in (1) United States Treasury obligations with maturities of seven years or less, (2) obligations backed by the United States Government full faith and credit, (3) New York State, New York State agency or New York State subdivisions (cities, towns, villages, counties) obligations with, (4) certificates of deposit fully collateralized from a bank or trust company in New York State, (5) notes, bonds, debentures, mortgages and other evidences of indebtedness of certain agencies sponsored by the United States government provided at the time of investment such agency or its obligations are rated and the agency receives, or its obligations receive, the highest rating of all independent rating agencies that rate such agency or its obligations, and (6) repurchase agreements using United States Treasury obligations with maturities of seven years or less. Investments are stated at fair value or amortized cost. For purposes of the statement of cash flows, the Authority considers all highly liquid investments (including restricted assets) with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents, which are stated at cost, consist of certificates of deposit, and treasury notes. Investments are reported at fair value. Receivables: Receivables are reported at their gross value when earned and are reduced by the estimated portion that is expected to be uncollectible. The allowance for uncollectible amounts is based on collection history, aviation industry trends and current information regarding the credit worthiness of the tenants and others doing business with the Authority. When continued collection activity results in receipt of amounts previously written off, revenue is recognized for the amount collected. Restricted Assets: Restricted assets consist of monies and other resources which are restricted legally as described below: Capital Funds - These assets represent capital debt proceeds and grant funds that are restricted for designated capital projects and cannot be expended for any other item. Passenger Facility Charges Funds - These assets represent Passenger Facility Charges (PFC) collections based on an approved FAA application to Impose such charges on enplaned passengers at the Airport. These funds are restricted for designated capital projects and any debt incurred to finance the construction of those projects. The Authority recognizes and reports as other income PFCs earned when all conditions have been met that entitles the Authority to retain the PFCs. PFCs received prior to this time are reported as restricted net position. 25

28 Revenue Bond Funds - These assets represent Series 2010 and 2017 general airport revenue bond (GARB) proceeds and Series 1999 Environmental Facilities Corporation (EFC) bond proceeds held in Bond Reserve Accounts. Bond reserve accounts for the Series 2010 and Series 2017 Bonds equal 125% of the average annual debt service due on bonds at the time of issuance. ANCLUC Funds - These assets represent Airport Noise Control and Land Use Compatibility (ANCLUC) program funds. These Airport funds were generated through the sale or rental of airport noise abatement properties acquired with Federal and State aid and interest earnings thereon. The use of such revenues is restricted to Airport Improvement Program eligible project costs contingent upon FAA concurrence. Concession Improvement Funds - These assets represent 1% of gross revenues of all food and beverage and retail concessions held in escrow to potentially fund the planning, developing, construction, remodeling, renovating or replacing of any of the concessionaire s leased area during the term of the concession agreement. Use of the funds during the term of the lease is subject to the Authority s sole approval. Funds remaining at the end of a concession agreement are retained by the Authority. Capital Assets: Capital assets include land, improvements to land, easements, buildings, building improvements, vehicles, equipment and all other tangible assets that are used in operations and have useful lives extending beyond a single reporting period. Capital Assets assumed by the Authority on March 15, 1994 are carried at historical cost, net of accumulated depreciation. Acquisitions of new assets costing $50,000 or more are recorded at cost. Maintenance and repairs are expensed as incurred. When depreciable assets are disposed of, the related costs and accumulated depreciation are removed from the respective accounts and any gain or loss on disposition is credited or charged to an expense. Capital Assets are written off when fully depreciated unless clearly identified as still being in use. Capital Assets are written-down due to impairment if circumstances indicate a significant or unexpected decline in an assets service utility has occurred. Impaired Capital assets are written down using an approach that best reflects the decline in service utility. Assets to be disposed of and assets held for sale are reported at the lower of carrying value or fair value less costs to dispose of. Depreciation of capital assets is computed using the straight-line method at various rates considered adequate to allocate costs over the estimated useful lives of such assets. The estimated lives by general classification are as follows: Years Buildings and improvements Vehicles, machinery and equipment

29 Capitalization of Interest: Interest costs incurred that relate to the acquisition or construction of capital assets acquired with tax-exempt debt are capitalized. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project, with interest earned on invested debt proceeds over the same period. Capitalized interest cost is prorated to completed projects based on the completion date of each project. No interest was capitalized in 2016 or Bond Issue Costs, Original Issue Discount and Deferred Loss on Bond Refundings: Bond insurance (an issuance cost) is deferred and amortized over the life of the respective issue on an effective interest method. Original issue discounts and deferred loss on refundings on long-term indebtedness are amortized using the effective interest method over the life of the debt to which it relates. Interest on capital appreciation debt is accreted using the effective interest method. Capital Contributions: Certain expenditures for Airport capital assets are significantly funded through the Airport Improvement Program (AIP) of the Federal Aviation Administration (FAA), with certain matching funds provided by the State and the Authority, or from various State allocations or grant programs. Capital funding provided under government grants is considered earned as the related allowable expenditures are incurred. Grants for capital asset acquisition, facility development and rehabilitation and eligible long-term planning studies are reported in the Statements of Revenues, Expenses and Changes in Net Position, after other income and expenses, as capital contributions. Revenue Recognition: Airfield Landing Fee Charges - Landing fees are principally generated from scheduled airlines, cargo carriers and non-scheduled commercial aviation and are based on the gross landed weight of the aircraft. The estimated landing fee structure is determined annually pursuant to an agreement between the Authority and the signatory airlines based on the adopted operating budget of the Authority and is adjusted at year end for the actual landed weight of all aircraft. Landing fees are recognized as revenue when the related facilities are utilized. FBO, Terminal Rents, Concessions and Ground Transportation - FBO revenues are generated from commercial and general aviation users, rental and concession fees are generated from airlines, parking lots, food and beverage, retail, rental cars, advertising and other commercial tenants. Leases are for terms from one to ten years and generally require rentals based on the volume of business, with specific minimum annual rental payments required. Rental revenue is recognized over the life of the respective leases and concession revenue is recognized based on reported concessionaire revenue. Other - All other types of revenues are recognized when earned. 27

30 Special Items and Extraordinary Items: Special Items - Special items are significant transactions or other events within the control of management that are either unusual in nature or infrequent in occurrence. The Authority did not report any Special Items in 2016 or Extraordinary Items - Extraordinary items are transactions or other events that are both unusual in nature and infrequent in occurrence. The Authority did not report any Extraordinary Items in 2016 or Passenger Facility Charges: Passenger Facility Charges (PFC) at the rate of $3 per enplaned passenger have been levied by the Airport since March 1, 1994 under an FAA approved application to impose $40,726,364 with collection thereof estimated to be complete in the year During 1996, the Authority received approval to increase the amount of PFC collections to $116,888,308 extending the estimated collection period through the year In 2009, the Authority received approval to change the PFC collection from $3.00 per passenger to $4.50 per passenger, with a current estimated collection period through Through March 31, 2018, the Authority has collected PFCs including interest earnings thereon totaling $99,569,980. PFC funds, along with related interest earnings, are recorded as restricted net position until they are applied against future debt service payments under an FAA approved Application to Use. PFC receipts are recognized and recorded as non-operating revenues in the year they are collected. The Authority previously expended $11.2 million of PFCs on projects funded on a pay-as-you-go basis. The Authority also covenanted in the Resolution authorizing the Series 2010A Refunding Bonds to apply future PFC collections to pay a portion of the debt service related to the FAA approved projects included in the Applications. Pursuant to the Resolution, PFCs collected and deposited in a segregated account, together with the interest earned thereon, are applied towards the subsequent debt service payments reducing the amount of debt to be funded from net operating revenue. Through March 31, 2018, the Authority has applied $85.4 million of PFC s towards the payment of debt service. Compensated Absences: Employees accrue vacation in varying amounts based on length of service. Employees can accumulate up to 300 hours, or 37.5 days of vacation time. Unused vacation time can be liquidated for cash upon separation, retirement or death. Sick leave is earned by regular, full-time employees at the rate of one day per month. Employees can accumulate up to 1,320 hours or 165 days of sick leave. Any sick leave hours unused at the time of an employee s retirement can be applied as additional service credit in calculating retirement benefits in the New York State Employees Retirement System. It is the policy of the Authority not to pay accumulated sick leave to employees who terminate prior to retirement. The liability for compensated absences earned through year-end, but not yet taken, is accrued by charging the expense for the change in the liability from the prior year. 28

31 Pension Plan: The Authority applies GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68) to recognize the net pension asset (liability), deferred outflows and deferred inflows of resources, pension expense (revenue), and information about and changes in the fiduciary net position on the same basis as reported by the cost-sharing, multiple employer, defined benefit pension plan. The Authority also applies GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date (GASB 71) to report additional deferred outflows. The Authority participation in the plans is mandated by State law and includes the New York State and Local Employees Retirement System (ERS) and the Optional Voluntary Defined Contribution (VDC) (the Systems). The Systems recognize benefit payments when due and payable in accordance with benefit terms; investment assets are reported at fair value. Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, through subsequent events, actual results could differ from those estimated. Adoption of New Accounting Standards: The Authority adopted GASB issued Statement #75, Accounting and Financial Reporting for Postemployment Benefit Plans Other Than Pensions, which is required to be implemented in fiscal year The pronouncement replaces previously issued guidance and establishes new accounting and financial reporting requirements for governments whose employees are provided other postemployment benefits. GASBS 75 requires prior period financial information presented be restated to reflect the new accounting standard, unless it is not practical to do so. As of March 31, 2018 the Authority does have GASBS 75 actuarial reports available to restate the financial information for the year ended December 31, 2017 and has reported the change in beginning net assets at January 1, 2018 as the cumulative effective of a changing in accounting standards. NOTE 3 Remaining Notes to these Quarterly Financial Statements These financial statements reflect an interim period ended March 31, 2018 and the Notes to the Financial Statement should be read in conjunction with these financial statements. The information in following notes discussing Other Postemployment benefits and Subsequent Events should be relied upon and supersedes the information reported in the Authority s 2017 Basic Financial Statements included in the its 2017 Comprehensive Annual Financial Report. The OPEB Plan is a single-employer defined benefit healthcare plan trust administered by the Authority. The Plan provides medical insurance benefits to eligible retirees who elect to receive it and their eligible dependents. Membership of the Plan consists of 9 retirees currently receiving benefits and 30 plan members composed of; 21 Active, 14 retired and 1 deceased employee. The Plan is a governmental plan that is not subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Plan was created by the Albany County Airport Authority to be managed by a sole trustee intended to be the Chief Financial Officer of the Authority who is the plan Trustee. The Plan is a component unit of the Albany County Airport Authority. The Trust has a fiduciary duty to provide plan benefits to eligible beneficiaries. So long as the Albany County Airport Authority provides the required benefits, the Trust s obligation is fulfilled 29

32 and it may than reimburse the Albany County Airport Authority for the cost of the benefits provided, if requested to do so. Eligibility An employee hired on or after January 1, 2005 shall become eligible to retire under this plan upon attainment of age 55 as an active member and completion of 10 years of service. Those hired after January 1, 2010 shall be eligible to retire upon attainment of age 62 with 10 years of creditable service. Contributions Contributions to the Plan are likely to be entirely funded by the employer (the Authority). Participants hired prior to July 1, 2005 are not required to contribute to the plan. Participants hired on or after July 1, 2005 are required to contribute 10% of the cost of plan benefits to the plan, offset by the value of their unused sick leave up to 1,320 hours at the time of retirement. The Plan was established and may be amended by the Authority. The Authority has no obligation to fund the plan. Contributions made were provided for in the Authority s annual budgets for 2008 through 2017 along with interest earnings thereon. Any future contributions to the plan would be authorized by a future resolution of the Authority. Net OPEB Liability The net OPEB liability was measured as of January 1, 2018, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date. Investment Policy The Authority has adopted an investment policy for the Trust that the Authority may amend from time to time. The Authority adopted an Investment Policy for effectively supervising, monitoring and evaluating the investment assets of the Plan. The investment policy allows for the plan assets to be comprised of: Fixed Income... 0%-60% Cash Equivalent... 5%-100% Domestic Equity... 0%-60% International Equity... 0%-60% Other Equity... 0%-20% As of March 31, 2018 all plan assets were on deposit with Key Bank, in a an interest bearing demand deposit account, the entire balance of which was collateralized by obligations that are guaranteed by the U.S. Government and held by a 3 rd party custodian. The Trustee believes the investment and management of the assets of the Plan have complied with the Trust investment policy adopted by the Authority. 30

33 Actuarially Determined Contribution (ADC) The Airport s Actuarially Determined Contribution (ADC) is an amount actuarially determined in accordance with parameters of GASB Statement 74/75 which represents a level of funding that, if paid on an ongoing basis, is projected to cover the service cost each year and amortize any unfunded actuarial liabilities (or funding excess). The following table shows the components of the Airport s annual ADC for the fiscal year and the amount actually contributed to the plan: For the fiscal year ending December 31, 2018 Service Cost 220, year amortization of NOL at 3.75% 263,744 Actuarial determined contribution 484,290 Contributions in relation to the actuarially determined contribution (300,000) Contribution deficiency/(excess) 184,290 Covered Employee Payroll 1,908,791 Contributions as a % of covered employee payroll 15.72% Funded Status and Funding Progress As of the January 1, 2018 Measurement Date, the plan was 24.13% funded. The Total OPEB Liability (TOL) for benefits was $8,531,647, and the Fiduciary Net Position was $2,058,413, resulting in a Net OPEB Liability (NOL) of $6,473,234. The covered payroll (annual payroll of active employees covered by the plan) was $1,908,791 and the ratio of the NOL to the covered payroll was 339.1%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, investment returns, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Since this is the first year of implementation, only the current year information is presented. 31

34 Changes in the OPEB Liability Net OPEB Liability at beginning of period $ 4,878,691 Service cost 220,546 Interest 188,539 earnings on OPEB plan investments 1,902 Differences between expected and actual experie 1,483,556 Employer Contributions (300,000) Net OPEB Liability at end of period $ 6,473,234 Changes in Deferred Outflows Deferred Outflow at the beginning of the period $ - Deferred Outflow created during the period From actual vs. expected experience 1,416,085 From investment experience 67,471 Net OPEB Expense 110,987 Actual amount paid for current year retirees 38,233 Deferred Outflow at the end of the period $ 1,632,776 Discount rate The discount rate used to calculate the total OPEB liability was 3.75%. The following table presents the results if the discount rate was 1% lower or 1% higher: Impact of a 1% Change in the Discount Rate as of January 1, 2018 Reporting Date 1% Decrease (2.75%) Current Discount Rate (3.75%) 1% Increase (4.75%) Net OPEB Liability $ 8,002,310 $ 6,473,234 $ 5,254,553 Service Cost $ 289,732 $ 220,546 $ 169,681 Healthcare Trend The healthcare cost trend cost rate used to calculate the total OPEB liability was 5%. The following table presents the results if the healthcare cost rate was 1% lower or 1% higher: Impact of a 1% Change in the Healthcare Cost Trend as of January 1, 2018 Reporting Date 1% Decrease (4.00%) Current Discount Rate (5.00%) 1% Increase (6.00%) Net OPEB Liability $ 5,109,674 $ 6,473,234 $ 8,209,427 Service Cost $ 175,961 $ 220,546 $ 278,926 32

35 Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the written plan as currently approved by the Authority and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of shortterm volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Investment rate of return Municipal bond rate Actuarial Cost Method Single equivalent discount rate: Inflation Salary Increases Cost of living adjustments Pre-retirement mortality Post-retirement mortality Disabled mortality Mortality experience study 3.70%, net of OPEB plan investment expense, including inflation. 3.16% as of January 1, 2018 (source: S&P Municipal Bond 20-Year High Grade Index-SAPIHG) Individual Entry Age Normal 3.75%, net of OPEB plan investement expense, including inflation. Using a blend of the Municipal Bond Index Rate for unfunded periods and the Investment Rate of Return for funded periods, based on GASB No. 74 Implementation Guide Exposure Draft; IG ED % as of January 1, 2018 and for future periods 3.00% annually as of January 1, 2018 and for future periods Not Applicable RP-2000 Employees Mortality Table projected generationally with scale BB and a base year 2009 for males and females RP-2000 Employees Mortality Table projected generationally with scale BB and a base year 2009 for males and females RP-2000 Employees Mortality Table projected generationally with scale BB and a base year 2009 for males and females The mortality assumptions reflect an experience analysis published in 2014 (based on the years ), updated to reflect data through January 1, 2015 for post-retirement mortality, and professional judgement. As such, mortality assumptions reflect observed current mortality as well as expected mortality improvements. 33

36 OPEB Expense Development Components of the Airport s OPEB expenses for the fiscal year ending December, 31, 2018: Service Cost $ 220,546 Interest on the Net OPEB Liability (asset), service cost, and benefit payments 188,539 earnings on OPEB plan investments 1,902 Total employer contribution (300,000) Net OPEB Expense $ 110,987 Money Weighted Rate of Return Beginning value - January 1, ,900,888 Annual contribution to OPEB Trust 155,615 Annual interest earnings 1,910 Ending Value - December 31, ,058,413 Money weighted rate of return 0.09% Subsequent Events and Related Party Transactions Land Acquisition During 2017 the Authority and County of Albany came to an agreement in principle for the Authority to acquire from the County two parcels of land comprising approximately 13 acres for $2,655,000 for future airport development. The land is presently developed with an ice hockey community recreational facility and an access road. The Airport currently uses a portion of the undeveloped portion of the parcels for Airport Valet Parking operations. Under the agreement the County would continue to operate the ice hockey facility as a community recreational facility for five years paying rent of $1 per year. The acquired land parcels will be added to the Airport Layout Plan and become part of the Airport. The agreement to acquire the property is based upon consideration that approximated appraised fair value. The agreement to allow the County to continue to operate the hockey facility for five years for annual rent fee of one dollar is a bargain price at less than fair value to the Airport but management believes it is permissible under federal regulations. The Authority intends to fund the acquisition of these parcels by using funds restricted for capital spending and other unrestricted funds if necessary. The Authority intends to issue additional debt to fund other committed and planned projects that it might otherwise have funded from cash on hand if this land acquisition did not occur. The agreement calls for the Authority lease with the County to be extended by 13 years to facilitate the Authority s contemplated borrowing plans as a result of this land acquisition. Class Participation Settlement Offer In April of 2018 the Authority received a Notice of Settlement from the New York State Attorney General s office which offered the Authority the opportunity to receive a settlement in the amount of $1.496 million from an out-of-court settlement between 45 State Attorneys General (including New York) and Deutsche Bank for alleged manipulation of LIBOR. The total settlement fund is in the amount of $213,350,000. The Authority has until June 2, 2018 to accept or reject the offer. If accepted and received these funds would be recorded as Extraordinary Income. 34

37 Capital Asset Impairment/Depreciation Estimates The Authority completed improvements to the roof of its terminal buildings in 2016 at a cost of $1,505,518 which it began depreciating over a twenty year estimated useful life as of March 1, At December 31, 2017 the undepreciated balance of the cost of the improvement is $1,367,512. Evidence has emerged that the useful life of this improvement has diminished significantly and the product failed. The Authority and product manufacturer are in the process of assessing the condition of the terminal building roofs required corrective action. No change in value of or depreciation of the roof improvement asset has been recorded at this time. Insurance Recovery The Authority owns and rents several commercial aircraft hangars. On October 24, 2017 the fire suppression system discharged on a false condition indication in one hangar. The cause of this incident has not been determined but is still under review. The incident resulted in mitigation and monitoring expenses and tenant claim for uninsured losses have accumulated to $299,356 through March 31, These insured expenses and insurance receivable have been as they are accepted and realized as nonoperating income and non-operating expense on the Statement of Revenues, Expenses and Changes in Net Position. For the three months ended March 31, 2018 $76,654 was realized as non-operating income and non-operating expense related to this incident. Land Disposition The State of New York and the Authority have come to an agreement for the Authority to sell 16.4 acres of land for a highway access project for $855,000, subject to approval of Albany County. The transaction is expected to be completed by June 30,

38 REQUIRED SUPPLEMENTARY INFORMATION 36

39 Required Supplementary Information Schedule of Changes in the Airport s Net OPEB Liability and Related Ratios For the quarter ended March 31, Total OPEB Liability 8,531,647 Service Cost 220,546 Interest on total OPEB liability, service cost and benefit 259,822 Changes in benefit terms - Difference between expected & actual plan experience 1,416,085 Changes of assumptions - Benefit payments excluding implicit cost N/A Implicit cost amount N/A Total benefit payments including implicit cost (144,385) Net change in OPEB liability 1,752,068 Total OPEB liability - beginning of period 6,779,579 Total OPEB liability - end of period 8,531,647 Plan Fiduciary Net Position 2,058,413 Interest on fiduciary net position 71,283 Earning from plan investments (69,373) Net investment gain/(loss( 1,910 Employer contribution to trust 300,000 Benefit payments from trust, including refunds of memb (144,385) Administrative expense - Other - Net change in plan fiduciary net position 157,525 Plan fiduciary net position - beginning of period 1,900,888 Plan fiduciary net position - end of period 2,058,413 Net OPEB liability 6,473,234 Plan Fiduciary net position as a % of total OPEB liability 24.13% Coverered employee payroll 1,908,791 Plan NOL as a % of covered employee payroll % Single discount rate to calculate plan liabilities 3.75% ** Schedule is intended to show information for 10 years. Information will be provided as available until a full 10 years of data is included. 37

40 Required Supplementary Information OPEB Expense and Deferred Outflows of Resources For the quarter ended March 31, 2018 Difference between actual & expected experience $ 1,416,085 Net difference between projected & actual earnings on OPEB plan investments 67,471 Total $ 1,483,556 Year Ended December 31: 2019 $ 296, , , , ,712 thereafter ** Schedule is intended to show information for 10 years. Information will be provided as available until a full 10 years of data is included 38

41 *** UNAUDITED - FOR INTERNAL REVIEW*** Financial Information 39

42 Albany County Airport Authority 2018 Summary of Revenues, Expenses and Net Results 2018 MARCH 2018 March 2018 Actual / Adopted FY Budget Actual Variance Variance 2017 Prior Year Budget YTD YTD YTD % YTD Actual Var % AIRPORT REVENUES Airline $ 14,333,604 $ 3,637,613 $ 3,773,663 $ 136, % $ 3,495, % Non-Airline 30,022,831 7,262,218 7,184,380 (77,838) -1.07% 7,249, % Total Revenues 44,356,435 10,899,831 10,958,043 58, % 10,745, % FIXED BASED OPERATOR RETAIL SALES Fixed Based Operator Retail Sales 6,608,465 1,865,615 2,362, , % 1,843, % Cost of Sales 4,327,205 1,261,807 1,556,571 (294,764) % 1,171, % Net FBO Retail Sales 2,281, , , , % 672, % EXPENSE SUMMARY AvPorts-Airport Management 23,040,664 6,254,981 6,325,783 (70,802) -1.13% 5,825, % Million Air-FBO Management 3,238, , ,227 (26,741) -3.13% 851, % Authority 4,603,949 1,408,831 1,393,573 15, % 1,311, % Total Expenses 30,883,190 8,518,298 8,600,583 (82,285) -0.97% 7,987, % OPERATING RESULTS 15,754,505 2,985,341 3,163, , % 3,430, % OTHER REVENUES (EXPENSES) Interest Earnings 10,783 2,033 0 (2,033) % 1, % Passenger Facility Charges 4,330,913 1,082,728 1,082, % 1,083, % ACAA '99 EFC Debt (447,204) (111,801) (111,801) % (110,061) -1.58% ACAA '03 Debt Service % (119,409) % ACAA '06 A & B Debt Service % (277,539) % ACAA '06 C Debt Service % (100,605) % ACAA '10 A Debt Service (10,626,139) (2,656,535) (2,656,535) % (2,659,377) 0.11% ACAA '17 A Debt Service (757,375) (189,344) (189,344) % % ACAA '17 B Debt Service (1,203,925) (300,981) (300,981) % % Non-Capital Equipment (240,000) (60,000) (11,036) 48, % (29,572) 0.00% Grant Income 138,700 31, , , % 31, % Improvement Charges 368,400 92,100 92, % 92, % Total Other Revenues(Expenses) (8,425,847) (2,109,960) (1,911,460) 198, % (2,087,779) 8.45% NET RESULTS BEFORE RESERVES 7,328, ,382 1,252, , % 1,342, % Less: Capital Improvements (3,123,697) (780,924) (780,924) % (774,861) -0.78% Less: Reserve Requirements (200,381) (200,381) (200,381) % (169,068) 18.52% NET RESULTS 4,004,580 (105,924) 271, , % 398, % Revenue Sharing: Transfer to/from Airlines (50%) 2,002,290 (52,962) 135, , % 199, % Authority Share (50%) 2,002,290 (52,962) 135, , % 199, % Less: Airline Incentives (107,464) (107,464) (21,314) 86, % (23,680) 0.00% Net Authority Share $ 1,894,826 $ (160,426) $ 114,217 $ 274, % $ 175, % Adopted FY Budget 2018 Actual YTD 2017 Actual YTD Operating Net Operating Net Operating Net MONTHLY RECAP Results Results Results Results Results Results JANUARY $ 695,782 $ (6,222) $ 896,019 $ 213,188 $ 883,367 $ 198,379 FEBRUARY 979, , , ,924 1,143, ,708 MARCH 1,310, ,969 1,460, ,255 1,403, ,251 SubTotal $ 2,985,341 $ 875,382 $ 3,163,826 $ 1,252,367 $ 3,430,117 $ 1,342,338 APRIL 1,443, ,423 MAY 1,600, ,393 JUNE 1,259, ,834 JULY 1,617, ,941 AUGUST 1,518, ,823 SEPTEMBER 1,245, ,579 OCTOBER 1,732,649 1,033,570 NOVEMBER 1,233, ,472 DECEMBER 1,117, ,241 TOTAL $ 15,754,505 $ 7,328,658 $ 3,163,826 $ 1,252,367 $ 3,430,117 $ 1,342,338 40

43 Albany County Airport Authority Revenue Summary 2018 MARCH 2018 March 2018 Actual / Adopted FY Budget Actual Variance Variance 2017 Prior Year Budget YTD YTD YTD % Actual Variance % AIRLINE REVENUES COMMERCIAL $ 6,355,196 $ 1,653,878 $ 1,702,808 $ 48, % $ 1,570, % CARGO 570, , ,759 5, % 125, % TERMINAL 6,144,115 1,536,029 1,615,250 79, % 1,494, % FBO 1,264, , ,846 2, % 305, % TOTAL AIRLINE REVENUES 14,333,604 3,637,613 3,773, , % 3,495, % NON-AIRLINE REVENUES AIRFIELD 463,401 91, ,387 16, % 91, % TERMINAL 3,597, , ,439 (41,651) -5.07% 753, % GROUND TRANSPORTATION 20,849,335 5,026,751 4,936,430 (90,321) -1.80% 5,048, % OTHER AIRPORT 5,112,950 1,321,620 1,359,124 37, % 1,355, % TOTAL NON AIRLINE REVENUES 30,022,831 7,262,218 7,184,380 (77,837) -1.07% 7,249, % TOTAL REVENUES $ 44,356,435 $ 10,899,831 $ 10,958,043 $ 58, % $ 10,745, % 41

44 Albany County Airport Authority Net FBO Retail Sales For the Three Months Ending Saturday, March 31, 2018 FIXED BASED OPERATOR RETAIL SALES Total Annual Budget This Month Budget This Month Actual Var This Mo. To Budget Year to Date Budget Year to Date Actual Var This Year to Budget Jet A Fuel Sales $4,378,590 $299,030 $333,265 $34,235 $921,473 $1,038,107 $116,634 Fuel Costs - Jet A (2,388,322) (163,107) (182,736) (19,629) (502,621) (577,371) (74,750) Fuel Discounts - Jet A (300,000) (20,488) (20,127) 361 (63,135) (67,739) (4,604) Net Jet A Fuel Sales 1,690, , ,403 14, , ,997 37,280 AvGas Fuel Sales 307,869 18,512 15,862 (2,650) 50,472 45,503 (4,969) Fuel Costs - AvGas (229,009) (13,770) (13,229) 541 (37,544) (35,995) 1,549 Fuel Discounts - AvGas (5,000) (301) (228) 73 (820) (647) 173 Net AvGas Fuel Sales 73,860 4,441 2,405 (2,036) 12,108 8,861 (3,247) Commercial AvGas Fuel Sales 412,788 37,325 27,504 (9,822) 105,175 86,552 (18,623) Fuel Costs-Comm AvGas (370,006) (33,457) (24,523) 8,934 (94,274) (77,441) 16,833 Net Comm AvGas Fuel Sales 42,782 3,868 2,981 (887) 10,901 9,111 (1,790) Auto & Diesel Fuel Sales 279,708 30,652 37,769 7, , ,631 12,105 Fuel Costs - Auto & Diesel (200,000) (23,693) (29,783) (6,091) (87,159) (105,027) (17,868) Net Auto & Diesel Fuel Sales 79,708 6,960 7,986 1,026 32,366 26,604 (5,762) Deicing Services 607,283 62, , , , , ,276 Deicing Costs Type I, Type IV (289,764) (29,570) (80,616) (51,045) (159,335) (227,121) (67,786) Net Deicing Services 317,519 33, , , , , ,489 Deicing Consortium 540,805 48, , , , ,240 89,397 Deicing Costs Type I, Type IV (540,805) (48,543) (201,402) (152,859) (315,843) (465,230) (149,387) Net Deicing Consortium 0 0 (2,171) (2,171) 0 (59,990) (59,990) FBO Services 81,422 9,537 10,561 1,023 17,991 12,493 (5,498) Catering (1,000) (83) 0 83 (250) Oil (3,000) (250) (750) Charts, Pilot Supplies (300) (25) 0 25 (75) 0 75 Net FBO Services 77,122 9,179 10,561 1,382 16,916 12,493 (4,423) NET FBO RETAIL SALES 2,281, , , , , , ,558 42

45 Albany County Airport Authority Expense Summary 2018 MARCH 2018 March 2018 Actual / Adopted FY Budget Actual Variance Variance 2017 Prior Year Budget YTD YTD YTD % Actual Variance % EXPENSES - SUMMARY AvPort-Airport Management $ 23,040,664 $ 6,254,981 $ 6,325,783 $ (70,802) -1.1% $ 5,825, % Million Air-FBO Management 3,238, , ,227 (26,741) -3.1% 851, % Authority 4,603,949 1,408,831 1,393,573 15, % 1,311, % $ 30,883,190 $ 8,518,298 $ 8,600,583 $ (82,285) -1.0% $ 7,987, % EXPENSES BY CATEGORY Personal Services $ 11,037,496 $ 2,792,776 $ 2,629,152 $ 163, % $ 2,614, % Employee Benefits 5,500,582 1,409,446 1,342,878 66, % 1,252, % Utilities & Communications 2,118, , ,988 (169,355) -23.4% 767, % Purchased Services Accounting & Auditing 61,000 22,443 22, % 30, % Insurance 751, , ,747 (24,889) -4.8% 525, % Legal Services 50,000 12,500 5,710 6, % % Public Safety 262,650 64,733 63,204 1, % 75, % Albany County Sheriffs 2,627, , , % 644, % Parking Valet Service 350,000 87,500 92,351 (4,851) -5.5% 102, % Employee Shuttle 20, % % Janitorial 484, , ,498 (1,328) -1.1% 107, % Public Communications 845, , ,718 21, % 159, % Special Studies 69,200 17,300 14,385 2, % 5, % Professional Services 863, , ,476 18, % 189, % Total Purchased Services 6,386,045 1,921,998 1,902,122 19, % 1,841, % Material & Supplies Airfield 901, , ,634 (69,007) -26.1% 215, % Buildings 1,890, , ,960 (148,117) -31.6% 507, % Grounds 800, , ,513 63, % 288, % Vehicles 845, , ,054 (30,642) -13.7% 167, % Total Material & Supplies 4,437,062 1,292,958 1,477,163 (184,201) -14.2% 1,178, % Office 492, ,881 86,092 43, % 104, % Administration 910, , ,192 (22,584) -9.1% 228, % Total Expenses $ 30,883,190 $ 8,518,299 $ 8,600,587 $ (82,281) -1.0% $ 7,987, % DEPARTMENT SUMMARY (DIRECT & INDIRECT) Direct Cost Centers Airfield $ 3,255,010 $ 920,858 $ 985,207 $ (64,349) -7.0% $ 854, % FBO 2,572, , ,028 (32,788) -4.9% 696, % Terminal 5,359,187 1,470,257 1,508,895 (38,638) -2.6% 1,471, % Loading Bridges 293,482 73,331 90,745 (17,414) -23.7% 73, % Parking 4,722,146 1,308,926 1,155, , % 1,120, % Landside 1,133, , ,509 (115,469) -33.2% 342, % Total Direct Cost Centers 17,336,222 4,790,652 4,905,554 (114,902) -2.4% 4,558, % Indirect Cost Center ARFF 2,027, , ,825 27, % 474, % Operations 1,005, , ,926 3, % 230, % Security 3,020, , ,783 (19,050) -2.5% 707, % Vehicles & Equipment 1,345, , ,711 (12,330) -3.1% 344, % Airport Mgmt Administration 877, , ,011 12, % 206, % FBO Administration 665, , ,199 6, % 154, % Airport Authority Administration 4,603,949 1,408,831 1,393,573 15, % 1,311, % Total Indirect Cost Centers 13,546,969 3,727,643 3,695,028 32, % 3,428, % Total Expenses $ 30,883,191 $ 8,518,295 $ 8,600,582 $ (82,285) -1.0% $ 7,987, % 43

46 *** UNAUDITED - FOR INTERNAL REVIEW*** Statistical Highlights 44

47 Albany International Airport March Highlights Percentage Percentage 2017 Actual ACTIVITIES: ACTUAL BUDGET Actual vs. Budget AUDITED 2018 VS Enplanements Current Month 126, , % 119, % Year - to - Date 332, , % 328, % Aircraft Operations Current Month 5,693 5, % 5, % Year - to - Date 14,798 14, % 14, % Landed Weight (#) Current Month 136,093, ,555, % 136,249, % Year - to - Date 369,475, ,148, % 378,518, % Cargo, Mail & Express (Tons) Current Month 1,554 1, % 1, % Year - to - Date 4,371 4, % 4, % FBO Jet A (Gallons) Current Month 72,099 67, % 66, % Year - to - Date 225, , % 204, % FBO AvGas (Gallons) Current Month 3,134 3, % 4, % Year - to - Date 9,026 10, % 10, % AvGas Commercial (gallons) Current Month 6,977 10, % 13, % Year - to - Date 22,127 29, % 37, % FBO Into-Plane (Gallons) Current Month 1,701,744 1,737, % 1,714, % Year - to - Date 4,771,499 4,564, % 4,605, % FBO Deicing (Gallons) Current Month 51,090 14, % 21, % Year - to - Date 129,947 90, % 97, % REVENUES: Landing Fees Current Month $523,984 $522, % $488, % Year - to - Date $1,427,709 $1,457, % $1,361, % Terminal Current Month $539,438 $512, % $498, % Year - to - Date $1,615,250 $1,536, % $1,494, % Parking Current Month $1,574,995 $1,542, % $1,581, % Year - to - Date $4,007,759 $4,007, % $4,071, % Rental Cars Current Month $257,554 $320, % $300, % Year - to - Date $776,414 $888, % $850, % Food & Beverage Current Month $102,925 $89, % $68, % Year - to - Date $221,978 $248, % $183, % Retail Current Month $68,414 $64, % $63, % Year - to - Date $184,005 $192, % $184, % Departure Current Month $15,175 $18, % $16, % Year - to - Date $43,993 $47, % $45, % FBO Jet A, Net Current Month $130,403 $115, % $118, % Year - to - Date $392,997 $355, % $344, % FBO AvGas, Net Current Month $2,405 $4, % $2, % Year - to - Date $8,861 $12, % $8, % AvGas Commercial, Net Current Month $2,981 $3, % $4, % Year - to - Date $9,111 $10, % $14, % FBO Into-Plane Current Month $57,225 $58, % $54, % Year - to - Date $159,485 $156, % $154, % FBO Deicing, Net Current Month $145,274 $33, % $67, % Year - to - Date $356,861 $176, % $265, % 45

48 Albany International Airport March Highlights 2018 YTD REVENUE PER ENPLANEMENT: PRELIMINARY AUDITED AUDITED AUDITED AUDITED Parking $12.04 $10.57 $10.57 $9.87 $9.19 Rental Car $2.33 $3.83 $3.59 $3.89 $3.95 Food & Beverage $0.67 $0.57 $0.56 $0.51 $0.55 Retail $0.55 $0.57 $0.56 $0.54 $0.57 Departure $0.13 $0.20 $0.17 $0.19 $0.19 Annual Rates and Charges Summary AIRLINE RATES & CHARGES: BUDGET AUDITED AUDITED AUDITED AUDITED Landing Fees Per 1,000 lbs. MGLW: Signatory $3.33 $3.12 $2.73 $3.27 $3.06 Non-Signatory $4.16 $3.91 $4.04 $4.04 $4.08 Apron Fees Per Square Foot: $1.38 $1.33 $1.19 $1.52 $1.59 Terminal Rental Per Square Foot: Signatory $81.57 $79.86 $81.11 $74.63 $68.13 Non-Signatory $ $ $93.48 $93.48 $90.58 Loading Bridges - Annual: $40,849 $47,237 $40,383 $44,761 $31,284 Cost per Enplanement : Airport CPE (after revenue sharing) $7.17 $6.57 $6.00 $7.12 $

49 Albany International Airport Monthly Enplanements For the three months ended March , , ,000 80,000 60,000 40,000 20,000 0 Jan Actual Feb Actual Mar Actual Apr May Jun Jul Aug Sep Oct Nov Dec 2018 Actual/ 2017 Actual 2016 Actual 2015 Actual 2018 # % 2018 vs Budget Variance Variance January (Actual) 104, ,347 (336) -0.3% 106, % 102,325 90,643 February (Actual) 102, , % 102, % 103,214 87,552 March (ACTUAL) 126, ,656 6, % 119, % 119, ,146 April () 121, ,508 2, % 119, % 119, ,736 May () 121, ,594 2, % 120, % 118, ,512 June () 121, ,145 2, % 120, % 117, ,861 July () 133, ,550 2, % 131, % 130, ,142 August () 137, ,589 2, % 135, % 133, ,590 September () 115, ,590 2, % 111, % 115, ,997 October () 127, ,449 2, % 127, % 123, ,149 November () 117, ,601 2, % 115, % 115, ,036 December () 110, ,138 2, % 107, % 108, ,385 Total 1,440,297 1,414,000 26, % 1,417, % 1,407,434 1,297,749 #DIV/0! YTD Enplanements 332, ,837 6, % 328, % 324, ,341 47

50 Albany International Airport Enplanements Per Carrier For the three months ended March Market Share United ; 12.0% Xtra Airways; 0.1% Boutique Air; 0.1% American; 22.3% Cape Air; 0.8% Delta; 13.3% Southwest; 44.1% Jet Blue; 7.0% One Jet; 0.3% Current Month # % Year To Date # % YTD Market Share % Carrier Change Change Change Change Change American 9,642 9,940 (298) -3.0% 24,634 27,895 (3,261) -11.7% 7.4% 8.5% -1.1% American Eagle-Air Wisconsin 0 1,357 (1,357) % 313 6,844 (6,531) -95.4% 0.1% 2.1% -2.0% American Eagle - Envoy 3,892 2,864 1, % 10,276 8,378 1, % 3.1% 2.6% 0.5% American Eagle-Piedmont 1,505 5,395 (3,890) -72.1% 6,671 12,137 (5,466) -45.0% 2.0% 3.7% -1.7% American Eagle-PSA 6,072 3,967 2, % 17,387 11,009 6, % 5.2% 3.4% 1.9% American Eagle-Republic 6, , % 14,869 3,224 11, % 4.5% 1.0% 3.5% American Eagle-SkyWest % 0 92 (92) % 0.0% 0.0% 0.0% American Eagle-TransStates 0 1,435 (1,435) % 197 1,435 (1,238) 100.0% 0.1% 0.4% -0.4% Boutique Air % % 0.1% 0.0% 0.1% Cape Air 1,010 1,313 (303) -23.1% 2,559 3,611 (1,052) -29.1% 0.8% 1.1% -0.3% Delta 12,627 13,381 (754) -5.6% 34,539 30,648 3, % 10.4% 9.3% 1.0% Delta - Endeavor 1,209 2,231 (1,022) -45.8% 1,209 4,508 (3,299) -73.2% 0.4% 1.4% -1.0% Delta - Express Jet % (262) % 0.0% 0.1% -0.1% Delta - Go Jet % (472) -72.4% 0.1% 0.2% -0.1% Delta - SkyWest 3,840 1,907 1, % 8,379 7,349 1, % 2.5% 2.2% 0.3% Jet Blue 8,236 8,272 (36) -0.4% 23,187 23,251 (64) -0.3% 7.0% 7.1% -0.1% One-Jet % % 0.3% 0.0% 0.3% Southwest 56,200 52,469 3, % 146, ,804 3, % 44.1% 43.8% 0.3% United 0 6,113 (6,113) % 1,175 16,512 (15,337) -92.9% 0.4% 5.0% -4.7% United Exp-Commutair 8,854 5,814 3, % 20,992 14,986 6, % 6.3% 4.6% 1.7% United Exp-Express Jet 1, , % 4, , % 1.4% 0.1% 1.3% United Exp-Go Jet 0 2,043 (2,043) % 0 5,762 (5,762) % 0.0% 1.8% -1.8% United Exp-Mesa (391) % 0 3,671 (3,671) % 0.0% 1.1% -1.1% United Exp-Shuttle America % (115) % 0.0% 0.0% 0.0% United Exp-SkyWest 3, , % 7,197 1,084 6, % 2.2% 0.3% 1.8% United Exp-TransStates 1, , % 5, , % 1.7% 0.1% 1.7% Xtra Airways (8) -5.6% (42) -14.3% 0.1% 0.1% 0.0% Total 126, ,677 6, % 332, ,100 4, % 100.0% 100.0% 0.0% YTD YTD # % Budget Actual Variance Variance 326, ,915 6, % 48

51 Albany International Airport Aircraft Operations by Type For the three months ended March 31 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Passenger Cargo Charters General Aviation Military % Type Change Passenger 9,452 9, % 9,394 8,204 Cargo 1,044 1, % 1, Charters & Corporate 1, % Sub Total 11,537 11, % 11,124 9,876 General Aviation 2,482 2, % 2,965 2,447 Military % Total 14,798 14, % 14,808 12,929 49

52 Albany International Airport Operations Per Carrier For three months ended March 31 OPERATIONS AS A PERCENTAGE OF COMMERCIAL CARRIER United, 19.5% Southwest, 25.1% JetBlue, 3.5% American, 22.5% One Jet, 3.8% Delta, 13.0% Boutique Air, 2.8% Cape Air, 9.8% # Current Month # % Year To Date # % YTD Market Share % Carrier Sch Change Change Change Change Change American (50) -28.7% (144) -28.3% 3.9% 4.6% -0.7% American - Air Wisconsin (62) % (324) -94.7% 0.2% 3.1% -2.9% American - Envoy % % 3.7% 3.1% 0.6% American - Piedmont (202) -73.7% (350) -51.8% 3.4% 6.1% -2.7% American - PSA % % 8.3% 3.6% 4.7% American - Republic Airways % % 5.2% 0.9% 4.3% American - Trans States (64) % (54) -84.4% 0.1% 0.6% -0.5% Boutique Air % % 2.9% 0.0% 2.9% Cape Air (170) -33.6% 974 1,444 (470) -32.5% 10.3% 13.1% -2.8% Delta (28) -10.6% % 7.2% 5.4% 1.8% Delta - Endeavor (30) -34.1% (134) -69.1% 0.6% 1.8% -1.2% Delta - Express Jet (2) % 0 14 (14) % 0.0% 0.1% -0.1% Delta - Go Jet % 4 22 (18) -81.8% 0.0% 0.2% -0.2% Delta - Shuttle America % 0 2 (2) % 0.0% 0.0% 0.0% Delta - Sky West % % 3.8% 2.9% 0.9% JetBlue % (6) -1.7% 3.7% 3.2% 0.5% One Jet % % 2.7% 0.0% 2.7% Southwest (6) -0.7% 2,268 2,370 (102) -4.3% 24.0% 21.5% 2.5% United (104) % (286) -92.3% 0.3% 2.8% -2.5% United - Commut Air % 1,080 1, % 11.4% 9.4% 2.0% United - Express Jet % % 2.6% 0.2% 2.4% United - Go Jet (62) % (174) % 0.0% 1.6% -1.6% United - Mesa (16) % (122) % 0.0% 1.1% -1.1% United - SkyWest % % 2.8% 0.3% 2.5% United - Shuttle American % 0 4 (4) % 0.0% 0.0% 0.0% United - Trans States % % 2.9% 0.1% 2.8% XTRAirways % 8 12 (4) -33.3% 0.1% 0.1% 0.0% Subtotal 3,558 3,438 3, % 9,452 9,486 (34) -0.4% 81.9% 86.1% -4.2% DHL - Ameriflight, Inc (2) -4.5% % 1.4% 1.1% 0.3% Federal Express % % 1.4% 1.1% 0.3% Federal Express - Wiggins Airways (28) -13.1% (6) -1.1% 5.8% 5.1% 0.7% United Parcel Service % % 2.5% 2.1% 0.4% Subtotal (24) -6.3% 1,044 1, % 9.0% 9.3% -0.3% Charter, Corporate & Diversions % 1, % 9.0% 4.6% 4.4% Total 4,390 3, % 11,537 11, % 100.0% 100.0% 0.0% 50

53 Albany International Airport Landed Weights For the three months ended March ,000, ,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Jan Actual Feb Actual Mar Actual Apr May Jun Jul Aug Sep Oct Nov Dec 2018 Actual/ 2017 Actual 2016 Actual 2015 Actual vs Budget Variance January (Actual) 121,408, ,452,472 (8,043,840) 128,222, % 117,525, ,304,214 February (Actual) 111,973, ,140,215 (3,166,561) 114,046, % 115,840,308 92,037,406 March (ACTUAL) 136,093, ,555,672 (1,462,235) 136,249, % 142,019, ,437,933 April () 133,244, ,814,346 (4,570,139) 136,505, % 135,028, ,377,313 May () 137,482, ,197,604 (4,715,494) 140,846, % 139,980, ,306,839 June () 130,638, ,118,886 (4,480,753) 133,835, % 133,960, ,103,138 July () 135,480, ,127,421 (4,646,844) 138,796, % 140,184, ,564,621 August () 136,990, ,689,562 (4,698,647) 140,343, % 137,206, ,078,087 September () 123,607, ,847,374 (4,239,618) 126,632, % 130,566, ,244,013 October () 127,985, ,375,700 (4,389,785) 131,118, % 137,092, ,976,521 November () 121,678, ,852,299 (4,173,458) 124,636, % 132,288, ,142,166 December () 121,357, ,519,449 (4,162,421) 124,327, % 128,999, ,133,174 Total 1,537,941,207 1,590,691,000 (52,749,793) 1,575,561, % 1,590,691,408 1,412,705,423 YTD Landed Weight 369,475, ,148,358 (12,672,635) 378,518, % 375,385, ,779,553 51

54 Albany International Airport Landed Weights Per Carrier For the three months ended March Market Share Cape Air, 0.9% Delta, 14.3% Boutique Air, 0.4% JetBlue, 6.7% One Jet, 0.8% Xtra Airways, 0.1% American, 24.0% Southwest, 40.7% United, 12.1% Current Month # % Year To Date # % YTD Market Share % Carrier Change Change Change Change Change American 9,673,201 12,157,802 (2,484,601) -20.4% 26,864,009 35,387,201 (8,523,192) -24.1% 7.3% 9.3% -2.1% American Eagle 21,360,604 17,869,348 3,491, % 61,962,691 52,681,521 9,281, % 16.8% 13.9% 2.9% Boutique Air 476, , % 1,339, ,339, % 0.4% 0.0% 0.4% Cape Air 1,150,799 1,733,051 (582,252) -33.6% 3,335,949 4,945,700 (1,609,751) -32.5% 0.9% 1.3% -0.4% Delta 14,661,502 16,520,099 (1,858,598) -11.3% 42,102,105 36,400,901 5,701, % 11.4% 9.6% 1.8% Delta Connection 5,796,898 4,806, , % 10,866,997 15,315,473 (4,448,476) -29.0% 2.9% 4.0% -1.1% JetBlue 8,531,880 8,531, % 24,884,649 25,266,045 (381,396) -1.5% 6.7% 6.7% 0.1% One Jet 2,165, ,165, % 3,107, ,107, % 0.8% 0.0% 0.8% Southwest 56,662,799 56,178, , % 150,406, ,060,000 (3,654,000) -2.4% 40.7% 40.7% 0.0% United 0 7,320,700 (7,320,700) % 1,712,180 21,746,310 (20,034,130) -92.1% 0.5% 5.7% -5.3% United Expresses 15,366,571 10,883,585 4,482, % 42,398,925 31,971,300 10,427, % 11.5% 8.4% 3.0% Xtra Airways 248, , % 496, ,000 (248,000) -33.3% 0.1% 0.2% -0.1% Charters/Diversions % % 0.0% 0.0% 0.0% Total 136,093, ,249,073 (155,636) -0.1% 369,475, ,518,450 (9,042,727) -2.4% 100.0% 100.0% 0.0% YTD YTD # % Budget Actual Variance Variance 382,148, ,475,723 (12,672,635) -3.3% 52

55 Albany International Airport Cargo, Mail & Express Handled by Carrier For the three months ended March 31 (In Tons) CARGO 18 vs.17 MAIL & EXPRESS 18 vs % Change % Change January % % February % % March , % % April 1, % % May % % June 1, % % July % % August 1, % % September % % October % % November % % December % % Total 2, , % 1, , % Total Fiscal Year 12, , Cargo, Mail & Express 18 vs.17 Cargo, Mail & Express Carrier % Change American % American - Air Wisconsin % American - Envoy % American - Piedmont % American - PSA % American - Republic Airways % American - Skywest % American - Trans States % Delta % Southwest % United % Airline Subtotal % DHL - Ameriflight, Inc % Federal Express 2, , % 2, , Federal Express - Wiggins Airways % United Parcel Serv 1, , % 1, , Subtotal Cargo 4, , % 4, , Total 4, , % 4, , Total Fiscal Year 18, , ,

56 Albany International Airport Cargo, Mail & Express For the three months ended March 31 2, , , , , , Jan Actual Feb Actual Mar Actual Apr May Jun Jul Aug Sep Oct Nov Dec 2018 Actual/ 2017 Actual 2016 Actual 2015 Actual Budget # % 2018 vs. (In tons) Variance Variance January (Actual) 1, ,488.2 (20.4) -1.4% 1, % 1, ,538.8 February (Actual) 1, ,388.1 (39.0) -2.8% 1, % 1, ,447.1 March (ACTUAL) 1, ,587.0 (33.0) -2.1% 1, % 1, ,548.1 April () 1, ,543.3 (32.0) -2.1% 1, % 1, ,601.4 May () 1, ,644.3 (34.1) -2.1% 1, % 1, ,594.2 June () 1, ,577.2 (32.7) -2.1% 1, % 1, ,613.6 July () 1, ,529.0 (31.7) -2.1% 1, % 1, ,624.2 August () 1, ,623.0 (33.6) -2.1% 1, % 1, ,565.3 September () 1, ,597.7 (33.1) -2.1% 1, % 1, ,711.4 October () 1, ,643.5 (34.0) -2.1% 1, % 1, ,755.6 November () 1, ,521.1 (31.5) -2.1% 1, % 1, ,485.0 December () 1, ,814.8 (37.6) -2.1% 1, % 1, , , ,957.2 (392.6) -2.1% 18, % 18, ,372.9 YTD Cargo, Mail, & Express 4, ,463.3 (92.4) -2.1% 4, % 4, ,

57 *** UNAUDITED - FOR INTERNAL REVIEW*** Airport Revenues 55

58 ALBANY COUNTY AIRPORT AUTHORITY For the Three Months Ending Saturday, March 31, March 2018 March 2018 Actual/ Adopted FY Budget Actual Variance Variance 2017 Prior Year Budget YTD YTD YTD % Actual Variance % AIRLINE REVENUES COMMERCIAL Landing Fees $5,297,871 $1,272,764 $1,236,666 ($36,098) -2.84% $1,185, % Airline Apron Fees 695, , ,137 2, % 164, % Glycol Disposal Fee 361, , ,005 82, % 220, % CARGO Landing Fee 570, , ,759 5, % 125, % TERMINAL Loading Bridges 531, , ,780 17, % 126, % Space Rental 5,613,076 1,403,269 1,465,470 62, % 1,367, % FBO Into Plane Fees 664, , ,485 2, % 154, % Fuel Farm Fee 600, , , % 150, % TOTAL AIRLINE REVENUES 14,333,604 3,637,613 3,773, , % 3,495, % NON-AIRLINE REVENUES AIRFIELD General Aviation Landing Fees 256,964 50,859 52,284 1, % 50, % Aircraft Parking Fees 176,437 28,479 27,857 (622) -2.18% 25, % TSA Apron Fee % % Tenant Maintenance 30,000 12,419 28,246 15, % 15, % Total Airfield 463,401 91, ,387 16, % 91, % TERMINAL FIS Facility Use Fee 0 0 1,520 1, % % Utility Reimbursement 26,000 6,260 6, % 5, % Tenant Maintenance 35,000 5,289 6,333 1, % 3, % Space Rent - Non Airline 707, , ,477 2, % 175, % Food & Beverage 1,045, , ,978 (26,554) % 183, % Retail 830, , ,005 (8,687) -4.51% 184, % Advertising 385,624 78,135 69,342 (8,793) % 84, % Foreign Currency 26,600 6,650 6, % 6, % Payphones 2, (106) % % ATM 36,415 9,049 8,742 (307) -3.39% 8, % Museum Shop 271,122 47,396 43,993 (3,403) -7.18% 45, % Operating Permits 190,684 41,359 41, % 44, % Vending Machines 32,589 7,380 8, % 7, % Baggage Cart Rentals 7,000 1,750 1, % 1, % Total Terminal 3,597, , ,439 (41,651) -5.07% 753, % GROUND TRANSPORTATION Parking 15,170,719 4,007,422 4,007, % 4,071, % Rental Cars 5,277, , ,414 (112,471) % 850, % Access Fees 313, , ,792 (2,861) -2.63% 105, % TNCs ,678 24, % % Garage Space Rent 87,161 21,790 21,786 (4) -0.02% 21, % Total Ground Transportation 20,849,335 5,026,751 4,936,430 (90,321) -1.80% 5,048, % 56

59 ALBANY COUNTY AIRPORT AUTHORITY For the Three Months Ending Saturday, March 31, March 2018 March 2018 Actual/ Adopted FY Budget Actual Variance Variance 2017 Prior Year Budget YTD YTD YTD % Actual Variance % OTHER AIRPORT Telephone System - 72,425 18,106 17,756 (351) -1.94% 18, % Building Rental 126,291 32,816 32, % 32, % Control Tower Rental 665, , , % 166, % Air Cargo Facility 884, , ,294 3, % 230, % State Executive Hangar 1,247, , , % 311, % T Hangars 100,328 25,082 25, % 22, % Tie Downs 4,096 1,024 1, % 1, % AV Gas Fuel Sales 43,138 7,578 4,922 (2,656) % 9, % FBO Properties 324, , ,645 10, % 107, % Industrial Park 557, , ,345 (3,988) -2.88% 137, % Land Rental 312,956 78,381 78, % 70, % Eclipse Hangar 39,987 9,997 10, % 29, % Hangar Rental 441, , ,327 14, % 103, % Internet and Cable Access 11,640 2,910 2,800 (110) -3.78% 2, % Fingerprinting 25,000 6,250 6, % 7, % Tenant Maintenance 1, (250) % % Purchasing Proposals 7,000 1, (1,485) % 1, % Ebay/Scrap/Equipment 15,000 3,750 2,194 (1,556) % % Utility Reimbursement 136,000 46,235 58,986 12, % 52, % Reim of Property Taxes 37,000 15,159 20,386 5, % 15, % Other 60,000 15,000 15, % 34, % Total Other Airport 5,112,950 1,321,620 1,359,124 37, % 1,355, % TOTAL NON AIRLINE REVENUES 30,022,831 7,262,218 7,184,379 (77,838) -1.07% 7,249, % TOTAL REVENUES 44,356,435 10,899,830 10,958,041 58, % 10,745, % 57

60 Albany International Airport Operating Revenue For the three months ended March 31 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 Actual 2018 Budget 2017 Actual YTD 2018 Actual YTD 2018 Budget Other Airport 10.3% Airline 37.4% Other Airport 10.5% Airline 35.2% Ground Transportation 37.1% Terminal 5.9% Airfield 9.4% Ground Transportation 39.4% Terminal 6.4% Airfield 8.5% YTD 2017 Audited Other Airport 10.9% Airline 34.7% Ground Transportation 40.1% Terminal 6.0% Airfield 8.3% 58