Tacoma Narrows Airport Financial Report May 2008

Transcription

1 Tacoma Narrows Airport Financial Report May 2008 City of Tacoma Transportation Services Division Public Works Department Prepared by: Sheri Hayes

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3 Table of Contents Management s Discussion and Analysis... 3 Financial Statements... 9 Notification These financial statements are interim, unaudited reports prepared primarily for the use of management. Not all transactions reported in these statements have been recorded on the full accrual basis of accounting or in accordance with generally accepted accounting principles. 1

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5 Management s Discussion and Analysis 3

6 City of Tacoma, Washington Public Works Department Tacoma Narrows Airport Management s Discussion and Analysis May 31, 2008 The following is a narrative overview and analysis of the financial activities of the Tacoma Narrows Airport for the first five months of This discussion and analysis is designed to focus on significant financial issues and activities and to identify any changes in the financial position. The information presented here should be read in conjunction with the financial statements taken as a whole. The financial statements are prepared on a full accrual basis of accounting. Financial Highlights A total of $14.9 million in grants has been approved from the FAA for 95% of the funding for construction costs associated with the FAA mandated runway safety improvements; the Tacoma Narrows Airport has received $1.2 million in grant reimbursements to date. The remaining $13.7 million is expected to be received as each piece of the construction work is completed. The construction is scheduled to be completed August Airport total assets exceed total liabilities by $3.7 million in 2008 compared to 2007 s $2.6 million. The 2008 change in net assets is $309,740 for the first five months of 2008 compared to $(367) for the same period last year. Financial Analysis Condensed Balance Sheets As of May 31, Increase (Decrease) Current assets $ 646,399 $ 327,746 $ 318,653 Capital assets 5,911,806 5,222, ,521 Total assets $ 6,558,205 $ 5,550,031 $ 1,008,174 Total liabilities $ 2,886,339 $ 2,901,423 $ (15,084) Invested in capital assets, net of related debt 5,911,806 5,222, ,521 Unrestricted assets (2,239,940) (2,573,677) 333,737 Total net assets 3,671,866 2,648,608 1,023,258 Total liabilities and net assets $ 6,558,205 $ 5,550,031 $ 1,008,174 Current Assets Total current assets increased $318,653 from a year ago. There was a grant reimbursement of $128,278 and an increase of land leases of $92,158. 4

7 Capital Assets The construction work in progress increased $862,920 over the past twelve month period to $1.6 million. This increase is due to the Safety Improvement Project for the runway. The Safety Improvement Project for the runway is scheduled to be completed August Current Liabilities In November 2002, the Convention Center Construction Fund authorized a $2,500,000 loan to the Airport for the construction of a Safety Improvement Project for the runway by Ordinance No On December 31, 2006, this loan was transferred to the General Fund by Ordinance No Interest accrued up through year end 2006 was paid to the Convention Center Construction Fund in the amount of $409,112; accrued interest since year end 2006 and up through May 2008 of $176,706 was paid to the General Fund. In addition, there is a non interest bearing loan of $350,000 from the General Fund which was authorized in December 2000 BY Ordinance On November 27, 2007, Ordinance No was passed to extend the due dates for both loans from December 31, 2007 through December 31, Financial Analysis Condensed Statements of Revenues, Expenses and Changes in Net Assets Year to Date May Increase (Decrease) Operating revenue $ 393,006 $ 302,103 $ 90,903 Operating expense 142, ,622 (245,241) Operating income (loss) 250,625 (85,519) 336,144 Net nonoperating income (loss) 58,749 85,152 (26,403) Change in net assets 309,374 (367) 309,741 Total net assets beginning of year 3,362,492 2,648, ,517 Total net assets ending $ 3,671,866 $ 2,648,608 $ 1,023,258 Operating Revenues In 2008, operating revenues increased $90,903, or 30%. This is mostly due to the new Northwest Hangar land lease that brought in $92,158 more revenues in the first four months of Northwest Hangars converted to a land lease and began operations in late This land lease was approved by Resolution No dated October 3, In 2008, commercial rent decreased $3,144, or 8%, over This was due to the revenues from Madrona Links Golf Course decreasing as well as lower revenues for the Tacoma Narrows Landing restaurant. Operating Expenses In 2008, operating expenses decreased $245,241, or 63%, over This decrease is largely due to the May 2007 payment for roof repairs that were completed in November and December of 2006 of $147,408. There was also a decrease in depreciation of $68,758 attributable to the fact that land improvements which had about $147,085 in depreciation annually, fully depreciated last year. 5

8 Operating Expenses ($ in thousands) Dollars in thousands Service and Other Charges 1 20 Personnel Services - 1 Supplies Depreciation Cost elements Nonoperating Revenues (Expenses) There were payments on interest expense of $53,718 on the loan from the General Fund. Financial Analysis Condensed Statements of Cash Flows Net cash from: Year to Date May Increase (Decrease) Operating activities $ 366,394 $ 25,735 $ 340,659 Noncapital financing activities (25,058) (25,058) Capital and related financing activities (139,746) (52,548) (87,198) Investing activities 9,249 7,035 2,214 Change in cash and cash equivalents 210,839 (19,778) 230,617 Cash and equity in pooled investments, beginning balance 426, ,025 86,527 Cash and equity in pooled investments, ending balance $ 637,391 $ 320,247 $ 317,144 Operating Activities In 2008, cash flow from operating activities is $340,659 more than in Receipts from customers increased $72,489. Payments to suppliers decreased $248,018. This decrease is largely due to the May 2007 payment for roof repairs that were completed in November and December of 2006 of $147,408. Personnel changes reduced the amount shown as payments to employees. Noncapital Financing Activities There was a FEMA reimbursement of $60,955 for roof repairs due to November and December 2006 storm damage that were completed in December of

9 Capital and Related Financing Activities In 2008, $87,198 more cash was used than in Cash used in construction is $214,305 as compared to 2007 s $130,666. In addition 2008 includes $53,718 cash used to pay the interest on the $2.5 million loan. In 2007, there was a grant reimbursement of $126,160. In August 2004 and March 2005 the Tacoma Narrows Airport received grants in the amounts of $4.8 million and $3.0 million respectively from the FAA for runway safety improvements mandated by the FAA. Of the $7.8 million in the 2004 and 2005 combined grants, the Tacoma Narrows Airport has received $1.2 million life to date. This is in addition to the grant just approved by Tacoma City Council for $7.1 million. The combined total for all three grants is $14.9 million for the runway safety improvements. Subsequent Events The City of Tacoma has negotiated a tentative agreement with Pierce County for the sale of the Airport to Pierce County. 7

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11 Financial Statements 9

12 City of Tacoma, Washington Public Works Department Tacoma Narrows Airport Balance Sheets (Unaudited) May 31, Increase ASSETS (Decrease) Current assets: Cash and equity in pooled investments $ 637,391 $ 320,247 $ 317,144 GASB 31 market rate adjustment 1,285 1,285 Prepaid expenses 7,723 7, Total current assets 646, , ,653 Capital assets: Land 2,371,494 2,371,494 Buildings & improvements 2,637,042 2,637,042 Airport infrastructure & equipment 3,689,824 3,689,824 Less accumulated depreciation (4,435,055) (4,261,656) (173,399) Assets in service 4,263,305 4,436,704 (173,399) Construction in progress 1,648, , ,920 Total capital assets (net of accumulated depreciation) 5,911,806 5,222, ,521 Total assets $ 6,558,205 $ 5,550,031 $ 1,008,174 LIABILITIES Current liabilities: Accounts payable $ 778 $ 12,358 $ (11,580) Accrued wages and benefits payable Accrued taxes payable 16,214 13,376 2,838 Deposits payable 19,347 18, Deferred revenue 7,333 (7,333) Interfund loans 2,850,000 2,850,000 Total current liabilities 2,886,339 2,901,423 (15,084) NET ASSETS Capital assets 5,911,806 5,222, ,521 Unrestricted (2,239,940) (2,573,677) 333,737 Total net assets 3,671,866 2,648,608 1,023,258 TOTAL LIABILITIES AND NET ASSETS $ 6,558,205 $ 5,550,031 $ 1,008,174 These statements should be read in conjunction with the Notes to the Financial Statements contained in the 2007 Comprehensive Annual report (CAFR). 10

13 City of Tacoma, Washington Public Works Department Tacoma Narrows Airport Statements of Revenues, Expenses, and Changes in Net Assets (Unaudited) Month of May Year to Date May YTD Inc(Dec) % Chg OPERATING REVENUES Landing fees $ 457 $ 462 $ 1,697 $ 1,468 $ % Land leases 15,985 7, ,020 36,862 92, % FBO rent 8,944 9,941 44,711 43,203 1,508 3% Commercial rent 6,071 5,612 38,217 41,361 (3,144) (8%) Aircraft tie down 1,392 3,491 9,389 11,540 (2,151) (19%) Fuel flow fees 2,660 2,296 10,693 8,689 2,004 23% Hangar rentals 30,904 30, , , % Airport late fees (110) (73%) Total operating revenues 66,423 59, , ,103 90,903 30% OPERATING EXPENSES Service and other charges 23, , , ,538 (157,166) (61%) Personnel services 5,160 1,249 19,862 (18,613) (94%) Supplies (136) (48) (704) (86%) Depreciation 7,723 21,108 38, ,408 (68,758) (64%) Total operating expenses 30, , , ,622 (245,241) (63%) Operating income (loss) 35,532 (143,806) 250,625 (85,519) 336,144 (393%) NONOPERATING REVENUES (EXPENSES) Investments revenue 1,751 1,210 9,247 7,034 2,213 31% Construction grant revenues 128, , ,160 2,118 2% Interest on interfund loan (10,701) (10,234) (53,718) (48,042) (5,676) 12% Other, net (25,058) (32,092) N/A Total nonoperating revenue (expense) 119,328 (9,024) 58,749 85,152 (26,403) (31%) CHANGE IN NET ASSETS Change in net assets $ 154,860 $ (152,830) 309,374 (367) 309,741 (84,398%) Total net assets beginning 3,362,492 2,648, ,517 27% Total net assets ending $ 3,671,866 $ 2,648,608 1,023,258 39% These statements should be read in conjunction with the Notes to the Financial Statements contained in the 2007 Comprehensive Annual report (CAFR). 11

14 City of Tacoma, Washington Public Works Department Tacoma Narrows Airport Statements of Cash Flows (Unaudited) Year to Date May CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 395,295 $ 322,806 Payments to suppliers (22,703) (270,721) Payments to employees (1,249) (19,953) Taxes paid (4,949) (6,397) Net cash provided (used) by operating activities 366,394 25,735 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Other, net (25,058) Net cash provided (used) by noncapital financing activities (25,058) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Grant proceeds for capital construction 128, ,160 Acquisition and construction of capital assets (214,305) (130,666) Accrued interest paid (53,718) (48,042) Net cash provided (used) by capital and related financing activities (139,746) (52,548) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends received 9,249 7,035 Net cash provided by investing activities 9,249 7,035 Net increase in cash and equity in pooled investments 210,839 (19,778) Cash and equity in pooled investments at beginning of year 426, ,025 Cash and equity in pooled investments ending $ 637,391 $ 320,247 These statements should be read in conjunction with the Notes to the Financial Statements contained in the (CAFR) 2007 Comprehensive Annual Report. 12

15 City of Tacoma, Washington Public Works Tacoma Narrows Airport Statements of Cash Flows (Unaudited) Year to Date May Reconciliation of operating income to net cash provided from operating activities: Net operating income (expense) $ 250,625 $ (85,519) Adjustments to reconcile operating income to net cash from operating activities: Depreciation expense 38, ,408 Change in operating assets: Accounts receivable 152,997 Prepaid expenses (2,364) (2,415) Due to other funds (347) (7,954) Accounts payable (69,222) Accrued wages, benefits, and long term compensated absences (91) Accrued taxes payable (4,949) (6,397) Deferred revenue (1,285) 2,347 Deposits payable 2,288 18,356 Total adjustments 115, ,254 Net cash from operating activities $ 366,394 $ 25,735 These statements should be read in conjunction with the Notes to the Financial Statements contained in the (CAFR) 2007 Comprehensive Annual Report. 13