CHICAGO ROCKFORD INTERNATIONAL AIRPORT€¦ · Passenger Aviation – to provide a high level of...

CHICAGO ROCKFORD INTERNATIONAL AIRPORT

GREATER ROCKFORD AIRPORT AUTHORITYFOR THE FISCAL YEAR OF 2016

ROCKFORD, ILLINOIS

ANNUAL BUDGET & APPROPRIATION ORDINANCE

2016

Fiscal Year 2016 Annual Budget and Appropriations Ordinance

For the period of May 1, 2015 - April 30, 2016

Greater Rockford Airport Authority

Chicago Rockford International Airport

Rockford, Illinois

Board of Commissioners

Paul Cicero, Chairman

Tom Myers, Vice Chairman

Ray Wetzel, Secretary

Kenneth Edward Copeland, Treasurer

Patrick Derry

Tom Dal Santo

Jeffrey Lee

Michael P. Dunn, Executive Director

Michelle Cassaro, Chief Financial Officer

Jan Benoit, Finance Manager

Mission

The Chicago Rockford International Airport exists to create regional economic opportunities through global aviation.

Vision We will leverage our asset base to achieve significant growth in the following areas: Cargo Service – to increase national ranking in gross landed weight. Passenger Aviation – to provide a high level of hassle-free customer satisfaction with additional destinations in niche markets. General and Corporate Aviation – to maintain, support and encourage expansion. Economic Development – to provide economic opportunities for growth. Education, Research and Development Initiatives – to leverage facility and available resources to enhance local aerospace initiatives in both the public and private sectors.

Table of Contents

TRANSMITTAL LETTER

Budget Objectives ..................................................................................................................... 1 Overview and Economic Conditions ......................................................................................... 2 Budget Summary ....................................................................................................................... 6 History ............................................................................................................................. 7 Organization ............................................................................................................................ 9 Strategic Plan .......................................................................................................................... 11 Financial Policies .................................................................................................................... 13 Budget Document ................................................................................................................... 19 Budget Process ........................................................................................................................ 19 Distinguished Budget Presentation Award ............................................................................. 20 Revenues ............................................................................................................................... 22 Expenditures . .......................................................................................................................... 23 Debt Service ........................................................................................................................... 25 Capital Improvement Program ................................................................................................ 27 Net Assets .......................................................................................................................... 28 Designated Assets ................................................................................................................... 28 Acknowledgement .................................................................................................................. 30

BUDGET SUMMARY Summary ............................................................................................................................... 31

REVENUE OPERATING Summary ............................................................................................................................... 32 Budget ............................................................................................................................... 34 Justifications ........................................................................................................................... 35

OPERATING EXPENSES Summary ............................................................................................................................... 39 Combined Departmental Budgets........................................................................................... 40

Finance and Administration Department Summary ............................................................................................................................... 43 Budget ............................................................................................................................... 46 Justifications ........................................................................................................................... 47

Facilities and Maintenance Department Summary ............................................................................................................................... 52 Budget ............................................................................................................................... 54 Justifications ........................................................................................................................... 55

Operations Department Summary ............................................................................................................................... 61 Budget ............................................................................................................................... 63 Justifications ........................................................................................................................... 64

Marketing Department Summary ............................................................................................................................... 67 Budget ............................................................................................................................... 69 Justifications ........................................................................................................................... 70

Terminal Service Department Summary ............................................................................................................................... 71 Budget ............................................................................................................................... 73 Justifications ........................................................................................................................... 74

AirFest Department Summary …………………………….…………………………………………………………………………………………….78 Budget ……………………………….………………………………………………………………………………………….79 Justifications ………………………….…………………………………………………………………………………………..80 Business Development Department

Summary ............................................................................................................................... 83 Budget ............................................................................................................................... 84 Justifications ........................................................................................................................... 86

NON-OPERATING REVENUES AND EXPENSES Budget ............................................................................................................................... 89 Justifications ........................................................................................................................... 90

CAPITAL IMPROVEMENT PROGRAM ................................................................................................... 91 EXHIBITS

Exhibit 1 Tentative Budget and Appropriation Ordinance ..................................................... 93 Exhibit 2 Rate & Charges Ordinance ...................................................................................... 95 Exhibit 3 Acronym and Glossary of Terms .............................................................................. 97 Exhibit 4 Statistics ................................................................................................................. 102 Exhibit 5 Fiscal Year 2016 Budget and Appropriation Ordinance ........................................ 107

August 27, 2015

The Honorable Chairman and Board of Commissioners Greater Rockford Airport Authority 60 Airport Drive Rockford, IL 61109 Dear Mr. Chairman and Commissioners: Respectfully presented is the annual budget of the Greater Rockford Airport Authority (Authority) as approved by the Board of Commissioners April 23, 2015. The Authority operates the Chicago Rockford International Airport (RFD). The budget includes plans and resources to move toward the strategic goals. This includes continued efforts to grow passengers, work to develop underutilized areas of the airport and make the RFD cargo capabilities known across the globe. The capital budget includes funds for significant infrastructure upgrades to support the expansion and growth of aviation development. Passenger retention and development is also a key part of the FY2016 plan. The budget strategically directs the allocation of resources to best enable the Authority to operate RFD in a manner that exceeds customer expectations and meets all safety and security requirements. It funds operations, activities, infrastructure, equipment and technology enhancements to meet the strategic goals of the Authority for the next year and into the future. Budget Objectives The Authority’s goals for the FYE16 budget are to allocate available resources to RFD programs and services to:

Operate a safe and secure airport. Meet all regulatory, legal and contractual requirements. Continue to exceed expectations to the customers of RFD with exceptional customer service and

care. Operate an efficient and financially self-sustaining organization. Provide the necessary resources to accomplish the Authority’s strategic plan.

The budget objectives are further broken down within each of the departmental and capital budgets for the year.

1

Overview and Economic Conditions The Authority is one of the oldest airport authorities in the United States. Formed in 1946, subsequent to enabling legislation, the Authority has four communities who appoint a seven-member Board of Commissioners. The Board of Commissioners is responsible for setting policies and ordinances governing the operations of the Authority, which are carried out or enforced by a professional staff. RFD is a United States Customs Port of Entry and grantee of Foreign Trade Zone (FTZ) #176. The diverse activities at RFD cause it to have a greater economic impact on the region it serves than any other commercial service airport in the State of Illinois, excluding the City of Chicago's airport system. RFD is located in the southwest quadrant of Rockford, Illinois with easy access from five major highways. It is located approximately 85 miles northwest of Chicago, Illinois; 90 miles southwest of Milwaukee, Wisconsin; 60 miles south of Madison, Wisconsin; 90 miles east of Dubuque, Iowa; and 90 miles northeast of Moline, Illinois. The airport covers an area of about 3,000 acres with 800 of those acres airfield related. The market service area ranges from 2,500,000 people at 60 minutes to 8,400,000 people at 90 minutes. RFD is geographically centered within the region.

The economic condition and outlook for the region has improved over the prior year. Employment needs are increasing and the unemployment rate decreased from 9.1% to 5.9% for Winnebago County. This is the lowest unemployment rate the region has seen since September 2007 when the rate was 5.7%. The number of employed individuals in the county is over 160,000. The region continues to expand and diversify its industrial base and employment opportunities. The Metropolitan Statistical Area (MSA) includes over 350,000 people. The region's low cost of living and competitive wage rates benefit both employer and employee. Our region is considered an excellent location for logistics services, warehouses and distribution centers, aerospace, on and off road vehicle manufacturing, industrial machinery, and metals manufacturing, as well as back office operations/call centers, professional business services, food processing, and chemicals manufacturing. The area lies in the heart of the Midwest at the crossroads of America and in very close proximity to Chicago, Milwaukee, Madison, Quad-Cities, and Peoria. As part of the Greater Chicago region, Rockford is part of the third-largest multi-modal system in the world and the largest in the U.S. From the Rockford area, businesses can reach 80% of U.S. households within a 24-hour truck drive.

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Overview and Economic Conditions (continued) The financial condition of the Authority is primarily dependent upon the amount of aircraft utilization at RFD. That utilization, in turn, is dependent upon several factors: the amount of cargo that is sorted at the United Parcel Service hub; the number of passenger airlines that service RFD; the number of passengers that use the airport; the national economy, which influences buying, and subsequent shipping habits; and, the regional economy that influences the willingness of the consumer to purchase air travel. RFD is home to the second largest air hub sorting facility in United Parcel Service's North American system. To better utilize the facility and to consolidate flights, UPS completed a $1 billion upgrade to the World Port facilities in Louisville which resulted in closing several sub-hubs throughout the country. RFD was never considered for closure and remains the back up to the Louisville World Port. UPS has informed RFD not to expect cargo increases for the next five years. RFD staff will meet with UPS executives in FY2016 to discuss future plans for the RFD facility. The most recent FAA cargo reports state RFD is the 25th largest cargo airport in the United States. Although the national average shows a 3.3% decrease in cargo activity, RFD saw a slight increase in gross landed weight for cargo in FY2015. Fees associated with cargo account for 28% of the operating revenue of the Authority. Cargo is a leading economic indicator and we fully believe that as the economy begins to grow, so will our cargo activities. The new International Cargo apron and facility can allow RFD to compete globally. The addition of the AAR Maintenance, Repair, and Overhaul (MRO) facility will add further incentives for carriers who are considering RFD. Our strategic plan focuses on international cargo as a growth area. It is estimated that RFD creates an economic impact approximately $1 billion annually to the region. Feeding off the cargo airlines are 60 motor freight carriers serving 37 terminals. The goal of growth in international cargo at RFD is a paradigm shift for the movement of cargo in the Midwest region of the United States. FYE16 projects no increase in landed weight.

-

200

400

600

800

1,000

1,200

1,400

1,600

LBS

Mill

ion

s

Cargo Landed Weight

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Overview and Economic Conditions (continued)

Passenger growth continues to be a high priority as outlined in the strategic plan. It is important for RFD to diversify the base of airlines that operate at RFD. Currently Allegiant Air offers service to Las Vegas, Orlando/Sanford, Clearwater/St Pete, Punta Gorda/Ft Myers, and Phoenix/Mesa. Apple Vacations offers seasonal service to Cancun, Punta Cana, and Puerto Vallarta. Allegiant Air accounts for 82% of all seats currently available at RFD. Elite Airways begins service to New York and Fort Collins on August 27, 2015. Our goal is to increase the number of passengers and airlines. The Authority is making every effort to continue to build and grow passenger service. On the positive side, current lower fuel prices are beneficial to all air carriers. On the negative side, the threat of terrorism sometimes rises to a point where people become nervous of flying. The consolidation of the airline industry into four major carriers is a move to concentrate on the larger cities and in some cases, abandon smaller to mid-size cities. Domestic air services from RFD are likely to be supplied by small and new carriers. They will certainly look for help in startup of operations. Still we also drive our efforts to attract the majors. We continue to work at bringing international passenger service to RFD. Low cost airlines have been venturing into the long haul sectors during the past two years. We believe that the reduced costs of operating at RFD are very significant to low-cost-carriers. European and Latin American carriers have been approached by staff. RFD is projecting a 3% growth in passengers for the coming year.

170,000

180,000

190,000

200,000

210,000

220,000

230,000

240,000

Passengers

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Overview and Economic Conditions (continued)

The Foreign Trade Zone (FTZ) program creates a partnership between American businesses and the Federal government, increasing the global market share of U.S. businesses and retaining or creating jobs at home. The FTZ program fits the mission of the Authority to expand business opportunity, create jobs and assist local companies to compete more effectively in the global marketplace. We believe that the FTZ can be a catalyst to improve the economic and business climate of the region. Four of our sites/subzones are active Zone operators. In 2010, FTZ #176 received reorganization approval from the FTZ Board under the new Alternative Site Framework (ASF) system, which provides faster and cheaper access to program benefits for potential business partners in the first quarter of the fiscal year. Service is now readily available to prospects in all of Boone, Ogle, Lee, Stephenson, Winnebago as well as parts of Bureau, Kane and McHenry Counties, most of LaSalle and part of Putnam County. While the growth in movement of products through FTZ activated sites and subzones slowed in the recessionary economy, leadership expects growth to reach $500 million within the next few years. Interest in activation is growing, with five additional applications anticipated during FYE16, with many more partners in the next two to three years.

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Budget Summary The budget presented has many highlights discussed in subsequent sections. Operating revenue is budgeted at $5,532,811 for FYE16. There is an increase from the prior year budget in lease revenue with an offsetting decrease in airport fees. The decrease in the operating expenses is related to the same. Operating expenses are budgeted at $8,515,905 which is a 1.33% increase compared to the prior year budgets, primarily related to increased personnel services.

FYE14 BFYE15 Est. FYE15 BFYE16BFYE15 vs

BFYE16

Operating Revenue

Airport fees-airside 1,846,746$ 2,010,075$ 1,892,559$ 1,937,637$

Airport fees-landside - rental car commissions 188,114 210,000 189,520 210,000

Lease revenue-on airport 1,215,849 1,328,330 1,161,912 1,390,003

Lease revenue-off airport 561,995 620,489 655,141 603,700

Airfest revenue - 605,000 448,987 625,000

Airport service fees 237,289 254,750 195,943 255,625

Other 432,837 503,405 470,930 510,847

Total Operating Revenue 4,482,830 5,532,049 5,014,992 5,532,811 0.01%

Operating Expense

Personnel services (3,952,434) (3,819,661) (3,704,021) (3,921,608)

Contractual services (2,988,188) (3,005,860) (2,854,219) (3,069,412)

Commodities (1,148,388) (1,286,917) (992,985) (1,232,695)

Other (335,495) (291,440) (488,334) (292,190)

Total Operating Expense (8,424,506) (8,403,878) (8,039,559) (8,515,905) 1.33%

Net Operating Expense (3,941,676) (2,871,829) (3,024,567) (2,983,094)

Non-operating Revenue (Expense)

Interest income 16,183 20,000 5,445 15,000

Property tax levy-operating 3,123,289 3,102,000 2,909,105 2,861,000

Replacement tax 595,828 602,222 472,380 601,418

AIP reimbursement funds 1,702,871 950,000 1,283,292 705,000

Passenger facil ity charges 512,191 559,926 420,103 541,723

Funds from auctioned equipment 20,980 75,000 69,322 70,000

Other credits 115,907 - - -

Interest expense (90,201) (72,000) (95,495) (115,032)

Total Non-operating Revenue (Expense) 5,997,048 5,237,148 5,064,153 4,679,109 -10.66%

Debt Service, Sinking Fund Deposits & Other Uses

Debt service principal payments (233,750) (253,750) (233,750) (447,197)

Debt Service - 400,000 - -

Operating reserve - 10,000 - -

Sinking fund use - Glycol pond - - 16,500

Total Debt Service and Sinking Fund Deposits (233,750) 156,250 (233,750) (430,697)

Net before Capital 1,821,623 2,521,569 1,805,836 1,265,318

Capital Improvement Program

Airside projects (433,451) (527,000) (433,451) (70,000)

Landside projects - (713,000) - (275,000)

Terminal projects (483,886) (534,000) (483,886) (700,000)

Administration projects (96,075) (175,000) (96,075) (150,000)

Maintenance projects (364,964) (416,980) (364,964) (16,500)

Operations projects (47,247) (80,000) 47,247 -

Total Capital Improvements (1,425,623) (2,445,980) (1,331,129) (1,211,500)

Excess Funds 396,000$ 75,589$ 474,707$ 53,818$

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History Camp Grant In 1917, during World War I, RFD, then named “Camp Grant,” was a U.S. Army Calvary Camp. During World War II the Army transformed Camp Grant into a military training base and a prisoner of war detainment camp. In 1946, the State of Illinois adopted the Airport Authorities Act; thus, the Greater Rockford Airport Authority was created. The original Board of Commissioners requested and received a grant of 1,500 acres of federal land. The airfield was constructed using most of the military base infrastructure. Over the last 50 years, RFD has hosted numerous airlines including: Braniff, Ozark, Frontier, Midwest Express, TWA, American, Northwest, TransMeridian, Hooters Air, Sunship1 and United. Airlines currently serving RFD include Allegiant and Apple Vacations. RFD’s Terminal In 1987, a new terminal building was constructed to better meet the community’s passenger travel needs. Within the last few years, significant terminal internal reconstruction and reconfiguration projects have been completed to accommodate the many new passengers and to meet Transportation Security Administration requirements. The terminal is now at full build out and considering peak flow can accommodate up to 500,000 passengers. UPS In 1994, United Parcel Service constructed an air cargo distribution hub. The hub currently employs approximately 1,200 with an average of 22 daily-scheduled cargo jet arrivals/departures ranging in size from 727-100s to 747s. In 2006 UPS built a 70,000 square foot building for their new heavy freight business which began in the summer of 2006. Beginning in 2007, UPS completed a $1 billion upgrade to the World Port facilities in Louisville which resulted in closing several sub-hubs throughout the country. RFD was never considered for closure and remains the back up to the Louisville World Port. Infrastructure Within the last several years, millions of federal dollars have been invested in airport infrastructure improvements. There are two runways: one is 8,200 feet in length; the longest is 10,000 feet in length. The 10,000 foot runway has a Category II/III Landing System, which is a valuable landing aid for commercial and private pilots. In 1996, a two million-gallon fuel storage facility funded by United Parcel Service, along with a perimeter roadway system, was constructed. The storage facility increases the stability of the airport now that fuel is immediately available. This storage facility is directly linked to an underground pipeline that ships all jet fuel necessary. There are future plans to expand the underground pipeline asset. Foreign Trade Zone #176 In July 1998, RFD became a User Fee Airport which brought Customs service to Rockford on a fee-for-service basis. On March 1, 1991, the FTZ Board in Washington, DC granted authority for FTZ #176 Site #1 (1972 acres) which encompassed the airport itself and some surrounding industrial properties. Port status was granted effective September 13, 1995, transferring the cost of the Customs operation to the

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History (continued) federal government. RFD was the first User Fee Airport to be upgraded to Point Of Entry status. With a new addition of an international arrival gate in 2005, the US Customs and Border Protection (CBP) now maintains an office staffed full-time at RFD with inspection services available 24 hours a day. In response to the creation of the Union Pacific Global III Intermodal Hub in Rochelle, over 1,000 acres of Greenfield space was added to our FTZ in Rochelle in 2005 and 2006; 74 acres in an industrial park in Woodstock was also part of the 2005 expansion. Our service area encompasses all or part of 10 north central Illinois counties: Winnebago, Boone, McHenry, Stephenson, Ogle, DeKalb, Kane, Lee, Bureau, Putnam and LaSalle. Environmental Issues The Authority is proactive to all environmental issues of the airport. A state-of-the-art Glycol Retention/Treatment Facility was completed in 1994. An addition is currently being planned to accommodate the NW cargo apron built in prior years as well as creating back-up infrastructure options if at some point in the future there is the need to pump the glycol directly to the local reclamation facility. Glycol is the key liquid component used in deicing aircraft during the winter months. Organization The Board of Commissioners continues its aggressive stance to further grow all areas of airport development. The Authority is governed by a seven-member Board of Commissioners. The members are appointed as follows: The Mayor of the City of Rockford, 3 members; Winnebago County Board Chairman, 2 members; The Mayor of the City of Loves Park, 1 member; and The Village President of Machesney Park, 1 member. The Board members serve five-year terms, except that any person appointed to fill a vacancy will be appointed to serve the unexpired term. Members of the Board of Commissioners are eligible for reappointment. The Board selects an Executive Director to staff the respective departments and oversee the day-to-day operations.

8

Organization (continued)

Organizational Chart and Senior Management

Following outlines the changes in total staffing by fiscal year as well as the creation of new departments to further breakdown prior departments. There has only been a slight change in actual staff to better reflect the operational needs of the organization.

0

5

10

15

20

25

30

35

40

45

FYE12 FYE13 FYE14 FYE15 FYE16

Personnel Positions by Department

Administration/Finance Marketing Facilities/MaintenanceTerminal Services Operations BusinessDevelopmentPassenger Development Airfest

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Organization (continued) The Executive Director of the Authority reports to the Board of Commissioners. In BFYE 16, airport staff is comprised of 45 employees (including seven Commissioners). This includes and increase from the prior year as the result of one additional business development staff. The allocation of staff is as follows:

FYE14 FYE15 FYE16

Actual Actual Budget

Administration & Finance

Airport Commissioners 7 7 7

Executive Director 1 1 1

Deputy Directors 1 1 1

Managers 2 2 2

Executive Assistant 1 1 1

Accounting Assistants 2 2 2

Administrative Assistants 1 1 1

Department Total 15 15 15

Facilities & Maintenance

Manager 1 1 1

Operations & Facilities Technician I 10 11 11

Operations & Facilities Technician II 4 2 2

Operations & Facilities Technician III 2 2 2


Operations

Manager 1 1 1

Assistant Manager 1 1 1

Supervisor 0 1 1

Operations & Facilities Specialist 6 5 5


Terminal Services

Operations & Facilities Technician III 3 3 3


Business Development

Deputy Director 1 1 1

Manager 0 0 1

Coordinator 0 1 1


Passenger Development

Manager 1 0 0

Supervisor 1 0 0


Total Organization 46 44 45

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Strategic Plan The Greater Rockford Airport Authority strategic plan is a tool for organizing the present on the basis of the projections of the desired future. It is a road map to lead the Authority from where it is now to where it would like to be in three to five years. The strategic planning process ensures that the most effective use is made of the Authority’s resources by focusing on key priorities. The budget incorporates the resources necessary to accomplish the goals of the strategic plan. The plan presented is a three year goal.

OBJECTIVES MEASURES TARGETS INITIATIVES

FINANCE AND

ADMINISTRATION

What must we deliver to our stakeholders to succeed financially?

Maintain financial stability

Maintain adequate reserves.

Maintain reserves equal to or greater than 4 months of expenses based on 3 year history.

Monitor reserves monthly.

Revenues Growth in diversified

revenue sources. Greater than 80% of revenues

from other sources than UPS. Monitor annual report, schedule of

major revenue sources.

CUSTOMERS AND STAKEHOLDERS

To achieve our vision, how will we serve and manage our customers

who are airport users and stakeholders?

Expand cargo service to increase economic impact and viability.

Operations Enplaned/Deplaned

cargo Landed aircraft weight Airline diversification Airlines/International

Ranking: Top 20 Operations increase: 20% Enplanements/Deplanements

increase: 27% Landed weight increase: 27% New airline operators: 3 International landed weight:

15% increase

Increase sales calls, public relations and global participation at tradeshows. Develop financial incentives to grow,

and diversify domestic and international cargo activity.

Expand passenger service to respond to regional demand.

Destinations Passengers Regional Diversification

Ranking: Top 200 New destinations: 7 Passenger increase: 100% External usage: 70% increase

outside Winnebago County International traffic: 50%

increase

Develop incentives and/or marketing support to encourage existing and new airline partners to establish new destinations or substantially expand current service. Establish one-off daily flying to

multiple new top 30 destinations based on the market service area. Establish international and domestic

seasonal flights in support of the travel industry. Create/maintain occasional charter flying to highly desired

destinations as mechanism to promote RFD to industry and consumers.

Develop a business plan for heavy metal MRO operations

Business plan for heavy metal MRO

Present plan in 6-9 mos. Accept plan in 9-12 mos.

Research, prepare and present plan to understand MRO market.

Excel as a community partner for the region.

Participation and collaboration in the community.

Continue and/or increase participation.

Develop collaborative opportunities for promotion, education and recruitment through various businesses and community events.

Go Global, Air Show. Ice Sculpting

Contest (clean snow), Cub Scouts, College/High School Interns.

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Strategic Plan (continued)


Expand FTZ Activity

Increase number of activated sites/subzones

Service Fee revenue

to GRAA. Throughput volume

(product in and out).

Add an average of one new FTZ operator/year.

Annually generate revenue

through fees to cover 100% of total RFD operating cost for FTZ #176.

Increase throughput by $1

billion within five years.

Maintain strong working relationship with consulting firm, Point Trade Services, Inc. Continue development of strong

regional network of economic development partners through Leadership Forum, Go Global, visits and attendance at their events. Increase regional public awareness

through public speaking opportunities. Go Global, Stateline World Trade Association and other external networking opportunities.

Provide exceptional and continuously improving customer service.

Customer satisfaction Surveys show meet or exceed

customer satisfaction.

Periodic customer satisfaction surveys. Establish baseline for improvement.

OPERATIONS AND FACILITIES

What must we improve

in our facilities, processes and physical assets order to achieve our vision of safety and

security?

Provide a world class safe and secure airport.

FAA Annual Certification

TSA Audit Operational Status Workplace Safety

0 deficiencies 0 deficiencies 0 hours closed 5 or less OSHA recordable

event annually.

Ensure safe operational status during times of severe weather. Enhance safety, capacity, and

marketability with the following: improved nav-aids, perimeter roadway, airport control tower, rescue and firefighting, hydrant fueling.

Improve and upgrade infrastructure condition

Balance between new opportunities and maintenance of existing infrastructure

Make investments based on budget, capital, and master plan

Work order system that improves efficiencies and measures future needs. Preventative maintenance checks

and services (PMCS) and scheduled equipment replacement program.

Protect and enhance the environment.

Energy/Fuel Savings Comprehensive

environmental plan.

3% reduction in energy usage per year.

Environmental work plan (within 12 mos).

Utilization and expansion of conservation and alternative energy opportunities. Completion of an environmental

work plan.

Enhancement of landside infrastructure and aesthetics

Airside/street side and facility improvements.

Kishwaukee Street entrance Falcon Road rehabilitation Work with local utility

providers to enhance safety and operational integrity of RFD.

Design and landscape plan for stone pillars at Kishwaukee Street entrance. Proactively work with state/local

agencies to enable funding for Falcon Rd. rehabilitation. Plan to evaluate airport projects to

incorporate the efficient placement of all future utility infrastructures.

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Strategic Plan (continued)


EMPLOYEES

How will we sustain our employees abilities to change and improve

Attract and retain a qualified workforce.

Performance appraisals Employee turnover

90% of all new hires rate satisfactory or better in the first 6 mos. of employment

Turnover rate at 8% or less annually.

Performance appraisals done annually and quarterly during first year of position.

Promote learning and growth

Professional development and or training opportunities and participation.

Hours of training or professional development

Identify organizational wide training priorities to improve job skills and knowledge. Create and implement training/

professional development program.

Implement initiatives for succession planning

Development of written succession plan

Creation, implementation and measurement of plan within 36 months.

Assessment of current and future workforce needs – 3 – 6 months, Create plan and business case for

succession plan 6-12 months, Approved resources in budget to

support leadership program. – 12 months, Define processes, training and

development program 12 - 18 months, Communicate, execute and measure

plan results for first year 18 – 36 months.

Financial Policies The Authority’s long-range goal is growth with balanced self-sufficiency, efficient debt use, and the means to these goals are sound fundamental financial policies. The financial policies that lay the groundwork for the budget are as follows: Basis of Accounting The annual financial statements of the Authority are prepared on the accrual basis of accounting, whereby revenues and expenses are recognized in the period earned or incurred. All transactions are accounted for in a single enterprise fund. Pursuant to GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Government Entities that Use Proprietary Fund Accounting, the Authority follows GASB guidance as applicable to proprietary funds and FASB Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins issued on or before November 30, 1989 that do not conflict with or contradict GASB pronouncements. Budgetary Data The Authority budget is prepared on an accrual basis with the exception for the following:

Principal payments on long-term debt are applied to the outstanding liability on a GAAP basis, as opposed to being expensed on a budget basis.

Capital outlays are recorded as assets on a GAAP basis and fully expended for budgetary purposes.

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Financial Policies (continued) The budget process begins each October. Authority management has long recognized the importance of proper and accurate budgeting. Management annually creates a comprehensive line item budget that is adopted by the Board of Commissioners in a public meeting before the beginning of each fiscal year. The budget narratives are detailed projections of the expected financial operation over the next year in accordance with the Authority’s long-range financial plans. The budget is created using zero-based budgeting techniques where staff are required to estimate all revenues and expenditures as though each revenue and/or expenditure was being initiated for the first time. Management’s control of the budget is maintained at the department level. It is the responsibility of each department to administer its operations in such a manner as to ensure that the use of funds is consistent with the goals and programs authorized by the Board of Commissioners. The Authority’s definition of a balanced budget is one in which revenues and other resources equal or exceed expenditures and other uses. A balanced budget is an integral part of maintaining the Authority’s financial integrity. Strategies employed to attain this balance include cost reductions, personnel and service efficiencies, and increasing fees to match related expenses. Operating Revenues and Expenses The Authority distinguishes operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with the Authority’s operations. The principal operating revenues of the Authority are airport fees (primarily landing fees and fuel flowage fees) and lease revenue. The Authority also recognizes certain other revenues as operating revenues, including airport service fees, storm water retention fees, fuel permits, quarry fees, etc. Operating expenses for the Authority include personnel and benefit costs, contractual services costs, commodities and others. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Cash, Cash Equivalents and Investments The Authority considers all highly liquid investments (including short-term investments) with maturity of three months or less when purchased to be cash equivalents. Investments are stated at fair value. Fair value is determined based primarily on the basis of quoted market prices. Interest income is recorded as earned. Custodial Credit Risk – Deposits: Custodial credit risk is the risk that in the event of bank failure, the Authority’s deposits may not be returned to it. The Authority has a policy regarding custodial credit risk which requires that funds on deposit in excess of FDIC or FSLIC limits be secured by either securities guaranteed by the full faith and credit of the United States of America or obligations of the United States of America or its agencies. The Authority’s policy also requires that the amount of collateral provided shall not be less than 105 percent of the fair market value of the funds secured. Pledged collateral shall be held by the Authority or in safekeeping, evidenced by a safekeeping agreement. Collateral in safekeeping must be held by a third party or by an escrow agent of the pledging institution. Custodial Credit Risk – Investments: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Authority will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Authority’s investment policy addresses custodial credit risk, as applicable, as detailed under Custodial Credit Risk – Deposits.

14

Financial Policies (continued) Credit Risk: The Authority may invest in public funds in certain types of security as allowed by the Public Funds Investment Act, 30 ILCS 235 et seg. “Public Funds” are defined as current operating funds, special funds, interest and sinking funds, and funds of any kind belonging to or in custody of the Authority. While the Public Funds Investment Act allows the investment of public funds in a wider range of possible securities, it is the policy of the Authority that investments be limited to the allowed securities as identified hereof. Allowable securities are as follows:

Bonds, notes, certificates of indebtedness, treasury bills, or other securities, which are guaranteed by the full faith and credit of the United States of America.

Bonds, notes, debentures, or other similar obligations of the United States of America or its agencies.

Any interest bearing account, deposit (including certificates of deposit), or any other investment constituting direct obligations of any bank, collateralized per the investment policy, and as defined by the Illinois Banking Act and only those insured by the Federal Deposit Insurance Corporation (FDIC).

Any repurchase agreement not to exceed 330 days as provided for in 30 ILCS 235/2 (h) so long as such repurchase agreements comply with said statute and are supported by the full faith and credit of the United States of America.

Concentration of Credit Risk – Investments: Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The Authority’s investment policy allows for no more than 40 percent of the total investment portfolio, exclusive of U.S. Treasury securities held in safekeeping to be held at one financial institution. Accounts Receivable Accounts receivable includes amounts due from Authority tenants as well as amounts due from the federal and state governments for grants. The amount shown is reduced by an estimated reserve for uncollectible accounts. Taxes Receivable Taxes receivable include taxes levied in the current fiscal year that will be paid in the following fiscal year. The balance is fully deferred at year-end because the tax levy will be used to fund expenses of the following year. Designated Assets Designated assets include all deposits and receivables either legally restricted or Board designated for specified purposes. Designated assets are segregated, by purpose, as follows:

Debt service – These assets are used to fund current maturities for the outstanding bond payments.

Capital projects – These assets are used to fund budgeted capital items with the exception of debt service.

15

Financial Policies (continued)

Stormwater retention and landfill closure – These assets are restricted for the repair, maintenance and monitoring of the stormwater retention pond and for the estimated landfill closure costs.

When expenses are incurred for which both designated and unrestricted resources are available, it is the Authority’s policy to first apply designated resources. The Authority understands the need to replace capital items. In order to minimize the impact of future capital expenses, staff has planned for capital replacements with the use of designated assets and they are funded by annual deposits from excess funds available. Capital Assets An accounting and inventory of all capital assets is maintained to ensure proper accounting control resulting in accurate financial reports. All individual items with a cost in excess of $2,000 that provide more than one year of economic benefit are capitalized. Depreciation is calculated by the straight-line method using the assets useful life that is classified as follows: Years Buildings 20 Infrastructure 20 Machinery, equipment & vehicles 5 – 10 Furniture & fixtures 3 – 5 Routine maintenance and repairs are expensed as incurred. Significant betterment and improvements are capitalized and depreciated over their estimated useful lives. Interest incurred during the construction phase of capital assets is reflected in the capitalized value of the assets constructed, net of interest earned on the invested proceeds over the same period. Compensated Absences The Authority accrues vacation and sick pay benefits as earned by its employees. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Net Assets The Authority classifies its net assets in three categories as follows:

Invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation and reduced by outstanding balances for bonds and other debt that are attributable to the acquisition, construction or improvement of those assets.

Restricted net assets result when constraints placed on assets used are either externally imposed by creditors, grantors, and the like, or imposed by law through constitutional provisions or enabling legislation. The Authority has no restricted net assets.

Unrestricted net assets consist of all other net assets that do not meet the criteria above.

16

Financial Policies (continued) Operating Reserves The Authority maintains operating reserve funds to protect against the need to reduce service levels, staff, or raise fees due to temporary revenue shortfalls or unprecedented one time expenditures. A reserve was established as a target minimum level to be maintained for exposure to natural disaster, severe unforeseen emergencies and economic uncertainties. The reserve policy will mitigate any future revenue fluctuations, where the revenues generated are interrupted or otherwise insufficient to offset the operating expenditure. To ensure sound fiscal management, preserve Authority Board discretion in its resource allocation decisions, and minimize the impact to the community and airport users the Authority establishes the following operating reserve funding targets:

Build a 3-5 month reserve of the annual operating and non-operating expenses using a three-year trend to project the actual amount.

Transfer all types of revenue exceeding expenses, after the payment of debt service and on-going capital project costs, into the reserve account until the target is met.

Maintain reserves in approved investments accounts that allow for projected needs of reserves as well as the ability to earn interest income where appropriate.

The recommended target amounts are based on recommendation from rating agencies and established best practices utilized by other municipalities. Legal Debt Margin Pursuant to the Airport Authorities Act, the Authority is given the right to issue tax secured bonds without the approval of voters within its boundaries for construction and development of an airport, provided that:

The total of the bonds previously issued or to be issued does not exceed three-quarters percent (0.75%) of the total assessed valuation of all taxable properties within the Authority’s boundaries, and

The plans and specifications are submitted to the State of Illinois Department of Transportation, Division of Aeronautics for approval.

The Authority may issue additional bonds; however, voter approval is required. The total amount of the bonds may not exceed two and three tenths percent (2.3%) of the total assessed valuation. The 2.3% debt limit is calculated as of the time of issuance of the bonds and includes all Authority indebtedness. The Authority is also subject to a 2.875% debt limitation with respect to all outstanding indebtedness. This limit is calculated as of the date of issuance of any debt, except tax anticipation notes, tax anticipation warrants and revenue bonds.

17

Financial Policies (continued) Tax Rate The current tax rate for the Authority is budgeted at $.1063 per $100 of assessed value. Risk Financing The Authority purchases commercial insurance coverage for the various risks the Authority may encounter in its operations. Such risks of loss relate to torts; theft of, damage to and destruction of assets; errors and omissions; and worker’s compensation. The Authority established a partial self-insurance program beginning January 1, 2008 to cover the risks of health claims and has retained the services of an outside agency to administer its self-insurance claims. The Authority does not assume unlimited liability for health claims as it maintains stop-loss coverage, which covers medical expenses when they are incurred for amounts in excess of $3,500 annually for each participant. Rates & Charges The Authority periodically approves a Rates & Charges Policy by resolution. The charges incorporated therein are determined by examining costs associated with the revenue stream. Rates & Charges are reviewed and amended periodically and are included in Exhibit 2. Rates and Charges are based on a combination of both residual and compensatory methods. Internal Controls The Authority’s internal control structure is an important and integral part of its entire accounting system. The current structure in place is designed to provide reasonable, but not absolute assurance that: (1) assets are safeguarded against loss from unauthorized use or disposition; (2) transactions are executed in accordance with management’s authorization; (3) financial records are reliable for preparing financial statements and maintaining accountability for assets; (4) there is compliance with applicable laws and regulations; and (5) there is effectiveness and efficiency of operations. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits that are likely to be derived from them, and that the evaluation of cost and benefits requires estimates and judgment by management. We believe that the Authority’s internal control framework adequately safeguards assets and provides reasonable assurance and proper recording of financial transactions.

One duty of the Finance Manager is to perform internal and external auditing functions. In the course of this assignment, the Finance Manager is authorized to have full, free and unrestricted access to all records relating to the audit. Budget Document Budgeting serves as an important management tool to plan, control and evaluate the operations of the Authority. The budget has been prepared in accordance with the standards set forth by the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award Program to fully disclose the financial operations of the Authority. Upon successful review and approval, this budget will be submitted to the GFOA for their consideration of this prestigious award.

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Financial Policies (continued) The Authority used zero-based budgeting (ZBB) techniques, which required staff to provide justification and support for all expenditures. This allows for evaluation of expenditures to ensure that each item supports and contributes to the goals of the organization. ZBB results in a more meaningful document that has the support of staff for implementation and utilization. This budget is divided into six components: transmittal letter, revenue budget, operating expenses budget, non-operating budget, capital budget, and exhibit section. The operating expense budget is further broken down into departmental budgets. Budget Process Budget Adoption. The Authority’s budget is adopted by ordinance to comply with the provisions of State of Illinois Statute 50 ILCS 330/3, which requires a governing body to approve a budget within or before the first quarter of the fiscal year. In accordance with that same statute, the budget serves as the annual appropriations ordinance. The budget is prepared on a cash basis, whereby all revenues and expenses are recognized in the period in which cash is received and/or paid. Budget Calendar. State law requires a tentative budget and appropriation ordinance be made conveniently available for public inspection at least thirty (30) days prior to final action thereon. Further, at least one (1) public hearing must be held prior to budget adoption and notice of this public hearing must be published in a newspaper at least thirty (30) days prior to the time of such hearing. The tentative schedule for this process was as follows: 26 February 2015 Approve Tentative Budget and Appropriation Ordinance (Exhibit 1)

23 March 2015 Public Hearing Notice published in newspaper

23 April 2015 Public Hearing

23 April 2015 Approve Adoption of Budget and Appropriation Ordinance (Exhibit 5)

In the fall prior to the end of the fiscal year department heads begin creating draft budgets and capital recommendations and then submit the recommendations to the Finance Department for review in December. The draft budgets are reviewed with each department head and the Director and then coordinated against the available resources and any edits or modifications are done to align the goals and plans for the coming year. With staff recommendation, the budget is finalized and presented to the Board of Commissioners for review. In anticipation of the fiscal year beginning May 1, typically the public hearing is held and the budget is approved in April. Budget Amendment. The Budget is amended only upon the occurrence of an extraordinary event, as deemed by the Executive Director, with concurrence by a majority of the Board of Commissioners and then only if funds are available. Budget Monitoring. The independent monitoring of the budget continues throughout the fiscal year for management control purposes. Monthly financial statements comparing to budget are presented to all Senior Staff and Board Members for review. A Planning and Finance Committee comprised of the same meets monthly to discuss and review any significant items or changes.

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Distinguished Budget Presentation Award The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Greater Rockford Airport Authority for its annual budget for the fiscal year beginning May 1, 2014. This was the fourteenth in as many years that the Authority has been awarded this prestigious award. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year. It is believed the current budget continues to conform to program requirements; therefore, it will be submitted to GFOA to determine its eligibility for award. Following is a copy of the award.

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Distinguished Budget Presentation Award (continued)

21

Revenues Two types of revenues are budgeted, operating and non-operating. Operating revenue is derived from the day-to-day operations of the airport and includes landing fees, fuel flowage fees, hangar leases, land leases, building leases, airport service fees, AirFest revenues, operating grants, and FTZ fees. Non-operating revenue is a consequence of operating the airport; e.g., tax levy and interest income. The airport services fee includes fees charged for services performed by our staff, which includes, badging, training, escorts, snow removal, deicing chemical application, international rubbish removal, fuel permitting and any other maintenance fees. Shown below are the historical annual operating revenues. There was a positive trend through FYE08, mostly attributable growth in both cargo and passenger activity and the return of AirFest in FYE06. The subsequent decline in operating revenues is related to the decline in cargo activity which has seen a 45% drop from the loss of two smaller cargo operations and a decrease from UPS. The Authority has worked to diversify the revenue sources and work to grow the leasable opportunities at the airport. Operating revenues budgeted for FY2016 remain consistent with FY2015 revenue projections.

Staff concentrates its efforts to increase the amount of fixed revenue over variable revenue as a high percentage of variable revenue could be financially catastrophic in an airport economic downturn. Lease revenue and other revenue (fixed revenue) will serve as a hedge in possible future economic downturns. As shown on the following page growth in airport fees is associated with the increased rates for landing fees and additional activity for diversions and charters. Staff continues efforts to investigate new opportunities for additional leased revenues.

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

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07

20

08

20

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Operating Revenue History

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Revenues (continued)

Non-operating revenues consist predominantly of the property tax levy, but also include replacement taxes and interest income collected on Authority deposits. Property taxes are levied to cover certain operating expenses. The total levy is approximately $.1063 per $100 of assessed valuation and the projected decrease is the result of assessed valuation reductions. Replacement taxes are projected to increase based on State of Illinois estimates. Airport Improvement Grant (AIP) funds and passenger facility charges are now considered non-operating revenues where in the past they were categorized as contributions. Passenger facility charges project an increase based on enplanement growth for the next year. Expenditures Expenditures are also categorized between operating and non-operating. Operating expenditures are those expenditures that are incurred as a result of the direct operation of the airport, and are further broken down by operating departments; Finance and Administration, Operations and Facilities, Air Service Marketing, Terminal Services and AirFest. Non-operating expenditures are expenditures for debt service interest. Following are the historical annual operating expenses. The fluctuations from year to year are mainly due to our service activity for new routes, effects of weather patterns, and economic conditions affecting costs of good and services. Projections for the next three to five years show a moderate increase in the operating expenses.

Airport Fees 42%

Lease Revenues

36%

AirFest Revenues

9%

Airport Service Fees

4%

Other 9%

FYE2015 Revenue by Type

Airport Fees 39%

Lease Revenues

36%

AirFest Revenues

11%

Airport Service Fees

5%

Other 9%

FYE2016 Budget by Type

23

Expenditures (continued)

Operating expenses are categorized into four areas, personnel service, contractual service, commodities, and other. Below is a chart showing the breakdown of costs by category.

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

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07

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Operating Expenses History

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Expenditures (continued) Personnel Services accounts for 46% of operating expenses and is traditionally one of the largest cost for the Authority. The Authoriy views the employees as its most important asset and works to hire the best most highly qualified and motivated people. Contractual services is 36% of the total operating expenses and includes all contracted services and utilities. Commodities make up only 14% of total expenses which is down from the prior year. The Other category of 4% is for those costs not included in the other sections and include the glycol retention treatment facility, landfill and environmental costs. Non-operating expenditures consist predominantly of interest expense for debt. There has been an increase from the prior year due to the addition of an interest expense on a capital lease for 2 new runway brooms. Debt Service The primary objective of debt management is to keep the level of indebtedness within the available resources, and comply with the legal debt limitations as established by the Airport Authorities Act. The Authority’s outstanding debt is $3.5 million in revenue bonds. The Authority has pledged the Airport Improvement Program (AIP) Federal Grant money it expects to receive in the future as a government revenue source to repay the general obligation alternate revenue bonds issued December 2008. Proceeds from the bonds provided financing to implement certain improvements to the Airport through construction of the Northwest Air Cargo Apron and Access Taxiway. The Authority has pledged future rents received as the revenue source to repay $400,000 in general obligation alternate bonds issued in November 2014. During 2014 the Authority entered into a capital lease agreement for two high speed runway brooms for a total of $1.2 million. The lease is for seven years with a $1 buy at the end of the term. The Authority manages debt with the goal of only incurring debt where it economically has a benefit and the following table shows the history and future of the outstanding debt. The following schedule incorporates both principle and interest payments for the existing and planned debt uses for the year. As noted below there are no plans to acquire additional debt at this time.

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Debt Service (continued)

$0

$1

$2

$3

$4

$5

FYE15 FYE16 FYE17 FYE18 FYE19 FYE20 FYE21 FYE22 FYE23

Mil

lio

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Debt Schedule

Revenue Bonds Interest Expense Capital lease

The last rating for the Authority was in October 2003. Moody’s upgraded the Authority bond rating to A1 from A2. The rating upgrade reflects the Authority eliminating bank loan debt, a moderate amount of rapidly retired bonded debt, resumption of a small amount of passenger service and the Authority’s stable and consistently well-managed financial operations. As a result of the improved rating, the Authority was able to issue previous bonds with a lower interest rate, thereby, reducing the amount of future interest expense the Authority incurred. The plan is to continue to maintain a balance sheet that will allow for favorable rating in the future when necessary to issue ratable debt.

The legal debt margins as of April 30, 2015 are summarized as follows which shows the Authority is within the legal debt margin.

Without With Total

Voter Approval Voter Approval Debt Limitation

Assessed valuation at Apri l 30, 2015 2,648,100,021$ 2,648,100,021$ 2,648,100,021$

Debt l imit percentages 0.75 % 2.3 % 2.875 %

19,860,750 60,906,300 76,132,876

Tota l debt appl icable to debt l imit - 4,909,508 4,909,508

Tota l - 4,909,508 4,909,508

FYE15 Legal debt margins 19,860,750$ 55,996,792$ 71,223,368$

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Capital Improvement Program The Capital Improvement Program (CIP) is a five to ten year program that provides for critical improvements and asset preservation. The program includes projects that address federal security requirements, airfield safety, enhanced revenue potential, rolling equipment replacement, asset preservation and completion of the newly updated Master Plan. Funding sources for the projects and replacements include Airport Improvement Program (AIP) grants, Passenger Facility Charges (PFC), allocated reserve funds, the balance of the capital accounts, operating revenues and short term borrowings where appropriate. The current year budget does not include any short term borrowings. Each year the Authority updates the five year equipment program and the 10 year infrastructure program. The 10 year plan is updated in conjunction with the Transportation Improvement Plan and the Master Plan when updated. Airport Improvement Program (AIP) grants are offered from the Federal Aviation Administration (FAA) to provide funding assistance for eligible capital projects that meet the criteria of the federal program. The Authority meets annually with the FAA and Illinois Department of Transportation to review the 10-year plan and discuss the upcoming year’s projects as well as any changes or additions to the plan. This is done prior to the FAA giving approval of each fiscal year plan. Title 49 of the United States Code (USC) authorizes the AIP program. The objectives of this federal program is to assist in development of a nationwide system of public use airports, to ensure the safe and secure operation of the airport and airway system, and to meet the projected needs of the public. The program is funded by aviation use fees, which are collected and deposited into the Airport and Airway Trust Fund that generates the revenues in support of the AIP. The US Congress authorizes expenditures from this dedicated fund on an annual basis each year. The AIP program includes entitlement and discretionary funding. Entitlement funds are awarded to eligible sponsors through a formula based on the number of passengers boarding and cargo aircraft tonnage. Discretionary funds are set aside to provide the FAA the flexibility to fund various high priority programs. It is projected that FYE16 will include approximately $10 million in AIP eligible projects for airfield improvements. The AIP program typically provides funding for 90% to 95% of eligible project costs. The AIP program budget generally will include potential projects if discretionary funding becomes available. If the funding is not available during the year the project will carry forward to the next year. The current year budget includes the Authority’s share of approximately $700,000 of the $10 million in projects. Passenger Facility Charges (PFC) were initially authorized through the Aviation Safety and Capacity Expansion Act of 1990. The Act allowed public agencies, which manage commercial airports to charge each enplaning passenger a facility charge in accordance with FAA requirements. The PFC is levied on the passenger tickets collected by the airlines, and forwarded to the airport (less a handling fee charged by the airlines). The revenues collected are to preserve or enhance safety, security, and capacity, to reduce noise or to enhance competition. In October 1992, the Authority received approval from the Federal Aviation Administration (FAA) to impose a PFC of $3.00 per enplaned passenger. In April of 2007 the FAA approved the Authority’s request to increase the PFC level to $4.50 on all remaining reimbursements. The new collection rate commenced on June 1, 2007. The total approved collectible amount is $7,476,945 and the Authority has collected PFCs, including interest earned totaling $5,538,765.

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Capital Improvement Program (continued) Projected FYE16 CIP capital expenditures are as follows and a specific list of the projects are outlined in the Capital Improvement section of the booklet.

Airside Projects $ 70,000

Landside Projects 275,000

Terminal Projects 700,000

Administration Projects 150,000

Maintenance Projects 16,500

Total Capital Improvements $1,211,500

Net Assets

Following is a summary of changes in net assets. The information is presented on a GAAP full accrual basis. The summary of net assets does account for these items and cannot be tied to other balances in this document. Income or loss before capital contributions is the net income or loss from the statement of revenue and expenses. Capital contributions are from Federal, State and grant programs for non-cash transfer of assets. The budget includes the net operating expense and net non-operating revenue which will combine with the depreciation for the year to make up the balance of the projected income before Capital Contributions.

FYE11 FYE12 FYE13 FYE14 FYE15 BFYE16

Net Pos ition, Beginning of Year $110,130,946 $111,001,882 $108,872,396 $111,686,653 $105,286,907 $107,238,382

Income(loss) before Capita l Contributions (6,855,250) (8,469,562) (9,783,239) (9,396,357) (9,557,548) (8,734,682)

Capita l Contributions 7,726,186 6,340,076 12,597,496 2,996,611 11,509,023 10,000,000

Net Pos ition, End of Year $111,001,882 $108,872,396 $111,686,653 $105,286,907 $107,238,382 $108,503,700

Summary of Changes in Net Position

Designated Assets The Authority’s intent is to become a self-supporting entity and, therefore, is accounted for as a proprietary fund. In a proprietary fund, the Authority accounts for its financial transactions similar to that of a private business enterprise. As a result the Authority has set up multiple bank accounts and investments for the four different types of sources and uses: operating, debt service, capital and trust funds for future expenditures. All expenses are paid with the appropriate resources. Since some capital expenditures have no funding source, other than those funded by FAA sources, it is necessary to transfer excess net operating proceeds from the Operating Account to these other accounts. This is generally done at year-end when the amount of excess funds is known. All excess funds earned in the current year will fund the Capital Fund for the next year. Operating account. The operating account is unrestricted and predominantly all operating monies (operating revenue and operating tax levy) are received and expended from this account (operating fund). Included, but separately identified is an Operating Reserve of approximately $479,000.

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Capital projects account. This fund pays for all capital improvements and capital programs unless accounted for specifically through a trust fund. Funding for this account is derived from Passenger Facility Charges (PFCs), excess operating monies from the previous year and AIP funds reimbursement. A portion of the AIP funds reimbursement planned for BFYE of $142,771 is also included in this account. Trust fund account. Trust funds were established to fund future expenditures for the following purposes:

Landfill closure fund, Glycol retention/treatment facility fund, Equipment replacement fund, and Building re-roof fund.

The landfill closure fund balance is $1,139,122. The balance appears reasonable based on the environmental engineers review. There will be no contributions to the fund during the year. The glycol retention/treatment facility fund is for future repairs and upgrades to this facility. This facility purifies the wastewater that is collected from de-iced aircraft. The glycol treatment fund has a balance of 1,414,461 and is funded by the interest earned. The maximum balance for this fund caps out at $1.5 million. The equipment sinking/replacement fund is for airport equipment purchases of larger equipment such as snow removal vehicles or fire trucks in the future. Presently, the fund balance is $1,496,325 and there are no plans in the current year to make a contribution other than interest earned on the existing funds. The expectation is the contributions will resume once revenues begin a steady growth. Typically this is funded by the receipts of auctioned equipment, investment earnings and a budgeted sinking fund transfer. A building re-roof fund to fund an extensive re-roof of the Coleman Hangar has a balance of $198,592. This balance appears adequate to fund the re-roof in the future. The Authority views this as an effective way to manage large capital purchases. A summary of the beginning balances, sources, uses, and ending balances for the segregated accounts are following.

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Budget Summary The budget presented has many highlights discussed in subsequent sections. Operating revenues are budgeted at $5,532,811 for FYE16. The increase in operating expenses is related to personnel services increases. Operating expenses are budgeted at $8,515,905 which is a 1.33% increase compared to the prior year budgets.

FYE14 BFYE15 Est. FYE15 BFYE16BFYE15 vs

BFYE16

Operating Revenue

Airport fees-airside 1,846,746$ 2,010,075$ 1,892,559$ 1,937,637$

Airport fees-landside - rental car commissions 188,114 210,000 189,520 210,000

Lease revenue-on airport 1,215,849 1,328,330 1,161,912 1,390,003

Lease revenue-off airport 561,995 620,489 655,141 603,700

Airfest revenue - 605,000 448,987 625,000

Airport service fees 237,289 254,750 195,943 255,625

Other 432,837 503,405 470,930 510,847

Total Operating Revenue 4,482,830 5,532,049 5,014,992 5,532,811 0.01%

Operating Expense

Personnel services (3,952,434) (3,819,661) (3,704,021) (3,921,608)

Contractual services (2,988,188) (3,005,860) (2,854,219) (3,069,412)

Commodities (1,148,388) (1,286,917) (992,985) (1,232,695)

Other (335,495) (291,440) (488,334) (292,190)

Total Operating Expense (8,424,506) (8,403,878) (8,039,559) (8,515,905) 1.33%

Net Operating Expense (3,941,676) (2,871,829) (3,024,567) (2,983,094)

Non-operating Revenue (Expense)

Interest income 16,183 20,000 5,445 15,000

Property tax levy-operating 3,123,289 3,102,000 2,909,105 2,861,000

Replacement tax 595,828 602,222 472,380 601,418

AIP reimbursement funds 1,702,871 950,000 1,283,292 705,000

Passenger facil ity charges 512,191 559,926 420,103 541,723

Funds from auctioned equipment 20,980 75,000 69,322 70,000

Other credits 115,907 - - -

Interest expense (90,201) (72,000) (95,495) (115,032)

Total Non-operating Revenue (Expense) 5,997,048 5,237,148 5,064,153 4,679,109 -10.66%

Debt Service, Sinking Fund Deposits & Other Uses

Debt service principal payments (233,750) (253,750) (233,750) (447,197)

Debt Service - 400,000 - -

Operating reserve - 10,000 - -

Sinking fund use - Glycol pond - - 16,500

Total Debt Service and Sinking Fund Deposits (233,750) 156,250 (233,750) (430,697)

Net before Capital 1,821,623 2,521,569 1,805,836 1,265,318

Capital Improvement Program

Airside projects (433,451) (527,000) (433,451) (70,000)

Landside projects - (713,000) - (275,000)

Terminal projects (483,886) (534,000) (483,886) (700,000)

Administration projects (96,075) (175,000) (96,075) (150,000)

Maintenance projects (364,964) (416,980) (364,964) (16,500)

Operations projects (47,247) (80,000) 47,247 -

Total Capital Improvements (1,425,623) (2,445,980) (1,331,129) (1,211,500)

Excess Funds 396,000$ 75,589$ 474,707$ 53,818$

31

Operating Revenue Summary Revenue sources are grouped into five distinct categories: airport fees, lease revenues, airport service fees, AirFest revenues and other and is further broken down within each category. This breakdown allows a comparison of variable revenues (airport fees and AirFest) vs. fixed revenues (lease revenue).

Airport fees – airside, $1,937,637. Airport fees – airside revenue is comprised of landing fees, ramp fees, and fuel flowage fees. These fees are generated on the runways, taxiways, aprons, and in areas of the terminal. They are variable in nature and dependent upon an aircraft landed weight, number of aircraft seats or gallons of fuel pumped. Fuel flowage fees were calculated using the prior year estimated fueling and economic indicators. Most fuel flowage is from the general aviation and small commercial operations and has budgeted similar activity as the prior year. Landing fees for cargo are projected based on 788 million pounds, which is slightly less than last year’s estimates. Based on discussions with the cargo operators and other economic indicators there is minimal growth planned for FYE16. Landing fees for passenger airlines are projected to increase as a result of diversion activity. Included are estimates for landing fees related to diversions and charters. RFD is a major diversion airport for airlines flying to O’Hare, Midway and Milwaukee. Ramp fees are related to usage by airlines from the jetway to the terminal. The Authority has a common use terminal. All users pay one fee for use of jetway, baggage claims, and counter space. All gates and counter space in the terminal are common use. Airport fees – landside, $210,000. The revenue in this category is rental car commissions. As in the previous category, these revenues are also variable in nature. Revenues are expected to remain consistent with the FYE15 projected year end amounts.

$0

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2011 2012 2013 2014 2015 BUD 2016

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Airport Fees Lease Revenues AirFest Revenues Airport Service Fees Other

32

Operating Revenue Summary (continued) Lease revenue – on airport, $1,390,003. Lease revenue is fixed over time and includes building, terminal, concessions/counters/office and land. These sources of revenue are not dependent upon an independent variable (except for time), and are recurring from year-to-year, with the exception of rental increases. Because of their nature, these revenues are easily and more accurately budgeted than variable revenues. The revenues in this category are all on the airport or within the perimeter fence. Lease revenues in both areas are projected to increase as a result of new lease opportunities. Lease revenue – off airport, $603,700. Sources of revenue include building and land leases. These sources are also fixed and do not vary much over time and are outside the perimeter fence and are largely considered an industrial park. Lease revenue–off airport is planned to decrease based on current leases in place. Efforts are underway to increase leased properties during the current fiscal year. AirFest revenue, $625,000. AirFest revenues are all the dollars associated with the annual airshow. This will be the ninth show since the return of the event. With the history and experience the budget amount appears to be a reasonable estimate based on a two day show with an approximate attendance of 75,000. Airport service fees, $255,625. Airport service fees include badging, training, escorting, snow removal, international rubbish removal, deicing chemical application and any other services provided. The amount budgeted is based on estimated activity levels for badging and international rubbish. The snow and deicing fees are based on our regional averages. Other – $510,847. Other revenue sources include commercial operating agreement fees, quarry fees, foreign trade zone fees, and other miscellaneous income. Most of these revenues are incidental to the operation. Increase is related to expansion at quarry and growth of FTZ fees.

33

Operating Revenues BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET

FYE11 FYE12 FYE13 FYE14 FYE15 FYE15 FYE16

AIRPORT FEES-AIRSIDE

4120 Fuel flowage fees 171,105$ 81,605$ 63,652$ 39,680$ 58,000$ 51,913$ 70,000$

4140 Landing fees - cargo 1,630,620 1,622,670 1,485,763 1,508,489 1,605,863 1,531,423 1,554,956

4141 Landing fees - non cargo 250,817 206,703 220,257 213,353 269,481 236,418 236,069

4142 Landings - terminal fees 88,606 56,911 114,746 85,225 76,731 72,805 76,612

TOTAL FEES-AIRSIDE 2,141,149 1,967,889 1,884,418 1,846,746 2,010,075 1,892,559 1,937,637

AIRPORT FEES-LANDSIDE

4270 Rent-a-car commissions 166,014 182,268 190,993 188,114 210,000 189,520 210,000

TOTAL FEES-LANDSIDE 166,014 182,268 190,993 188,114 210,000 189,520 210,000

LEASE REVENUE-ON AIRPORT

4330 Building 512,448 590,802 652,011 774,906 888,797 759,968 918,155

4360 Land 496,146 418,860 372,926 346,605 350,412 318,868 367,094

4361 Parking/ramp 7,818 8,323 12,858 28,018 32,000 28,218 32,000

4380 Terminal concession/counter/offices 49,185 75,751 58,355 66,320 57,121 54,859 72,754

TOTAL LEASE-ON AIRPORT 1,065,598 1,093,736 1,096,151 1,215,849 1,328,330 1,161,912 1,390,003

LEASE REVENUE-OFF AIRPORT

4430 Building 163,545 156,095 153,572 155,374 165,850 163,895 135,994

4460 Land 329,260 342,657 363,823 406,621 454,639 491,246 467,706

TOTAL LEASE-OFF AIRPORT 492,805 498,751 517,395 561,995 620,489 655,141 603,700

AIRFEST REVENUE

4915 Air Show- Concessions 199,821 113,630 173,620 - 110,000 89,837 100,000

4916 Air Show - Sponsors 151,142 157,142 116,455 - 175,000 150,340 200,000

4917 Air Show - Special Promotions 26,890 21,325 19,355 - 95,000 59,971 65,000

4918 Air Show - Marketing 27,642 17,427 13,477 - 10,000 2,160 40,000

4919 Air Show - Show Tickets 208,087 186,439 236,511 - 215,000 146,679 220,000

TOTAL AIRFEST REVENUE 613,582 495,962 559,418 - 605,000 448,987 625,000

AIRPORT SERVICE FEES

4950 Fuel permits 4,200 4,200 3,150 3,375 3,750 3,750 2,625

4955 Late fees - - - - 1,000 - 1,000

4970 Snow removal/maintenance fees 7,645 2,785 750 2,891 12,000 6,969 12,000

4971 International rubbish disposal fee 110,120 89,270 40,285 27,485 50,000 30,360 50,000

4972 Deicing chemical application fee 80,778 138,628 160,934 187,592 160,000 134,966 160,000

4975 Other airfield service fees 31,667 27,698 26,474 15,946 28,000 19,898 30,000

TOTAL AIRPORT SERVICE FEES 234,410 262,580 231,593 237,289 254,750 195,943 255,625

OTHER

4930 Commercial operating agreement 75,185 76,225 73,045 68,805 75,105 67,848 71,547

4940 Foreign trade zone fees 72,500 70,000 74,500 100,932 120,000 97,712 105,000

4960 Quarry fees 90,000 90,000 90,000 90,000 110,000 125,412 130,000

4980 Stormwater fees 150,000 150,000 150,000 150,000 150,000 150,000 150,000

4985 Other agency grants 61,201 17,791 - - - - -

4990 Miscellaneous 78,078 48,124 39,195 23,100 48,300 29,958 54,300

TOTAL OTHER 526,964 452,140 426,740 432,837 503,405 470,930 510,847

TOTAL OPERATING REVENUE 5,240,521$ 4,953,326$ 4,906,708$ 4,482,830$ 5,532,049$ 5,014,992$ 5,532,811$

CODE/LINE ITEM

34

Operating Revenue Budget Justifications

AIRPORT FEES‐AIRSIDE

4120 Fuel flowage fees 70,000$

4140 Landing fees 1,554,956$

4141 Landing fees ‐ non cargo 236,069$

4142 Landings ‐ ramp fees 76,612$

AIRPORT FEES‐LANDSIDE

4270 Rent‐a‐car commissions

210,000$

LEASE REVENUE‐ON AIRPORT

4330 Building lease‐on airport

T‐hangars, 18 @ $245/mo. 52,920

T‐hangars, 3 @ $281/mo. 10,116

T‐hangars, 3 @ $330/mo. 11,880

T‐hangars, 6 @ $353/mo. 25,416

T‐hangars, 2 @ $407/mo. 96,168

T‐hangars, 2 @ $473/mo. 11,352

Plot #A‐9, Alpine Aviation 11,656

Plot #A‐5, Rock Valley College 32,000

Plot #A‐10, Mechanical Tool & Eng. 28,752

Plot #A‐12, Emery Air Charter 94,856

Plot #A‐14, OSF Aviation (40 Airport Dr) 54,335

Plot #A‐15, Heritage Aero 43,416

Plot #A‐18, Grumman Drive Hanager ‐ Charles Thomas/Others 30,000

Plot #A‐18, Emery Air Charter ‐

Plot #A‐20, Pride Aviation 22,159

Plot #A‐21, Hot Shot Express 30,990

International Cargo Facility ‐ Anderson Packaging 350,140

Temporary Leases 12,000

Total building lease‐on airport 918,155$

Buildings and hangars owned by the Authority and located within the airport perimeter fence line are considered on

airport (airside) building leases.

Budgeted automobile rental commissions are calculated on average monthly rental commission.

35


4360 Land lease‐on airport

Plot #A‐1, Aircraft Systems Inc. 10,407

Plot #A‐2, Kaney Aviation 21,009

Plot #A‐3, Courtesy Aircraft, Inc. 19,635

Plot #A‐4, Avionics Place 22,586

Plot #A‐6, Owners Association 14,537


Plot #A‐11, First Franklin Investment 10,915

Plot #A‐19, HSI Investments, LLC (Pride) 14,992


Plot #A‐23A, Emery Air Charter 19,710

Plot #A‐27, Superior Plane Aircraft 7,658

Plot #A‐28, HSI Investments, LLC (Pride) 17,973

Plot #A‐29, Kaney Aviation 20,376

Plot #A‐32, Emery Fuel Farm 15,343

Plot #A‐XX, Rock Valley College 8,481

Airmen, Inc. ‐ Bldg D 2,727

Airmen, Inc. ‐ Bldg E 3,148

Airmen, Inc. ‐ Bldg F 3,910

Total land lease‐on airport 367,094$

4361 Parking/Ramp Fees 32,000$

4380 Terminal lease‐concession/counter/offices

Automobile rental‐Avis 7,246

Automobile rental‐Hertz 7,223

Automobile rental‐National 7,769

Office/Storage Space ‐ Chicago Aircraft ‐

Airline Office Space ‐ Allegiant 7,748

Airline Office Space ‐ Frontier 5,000

Café/Bar 25,000

General Serv.Adm. (FAA/TSA) 12,768

Total terminal lease 72,754$

LEASE REVENUE‐OFF AIRPORT

4430 Building lease‐off airport

Prof Building ‐ UPS Employment 20,709

Ops Bldg ‐ FAA 4,700

Plot #I‐2 6772 Falcon Rd (Pride) 1,729

Emery Air ‐ Bldg 30 5,148

Carlson Farms ‐ Bldg 30 ‐

Plot #I‐30 CWTS 26,215

Plot #I‐15 ‐ CMT 42,225

Kennamental 1,200

Alpha Wrestling ‐ I29 5,000

Metro Enforcement 14,400

Carwash Bay‐ Avis 4,800

Carwash Bay ‐ Enterprise 5,068

Carwash Bay ‐ Hertz 4,800

Total building lease‐off airport 135,994$

Buildings owned by the Authority and located outside the fence line are considered off airport (landside) building leases.

A lease is considered a land lease if the land is leased and the lessee has added an improvement (building).

36


4460 Land lease‐off airport

Farm, 530 acres @ $125/acre; 87 @ $100/acre 75,000

Solar Farm 8,106

Plot #I‐3 ACF Properties (Triplett) 21,805

Plot #I‐4 Mechanical Tool & Engineering 7,329

Plot #I‐5 Mrs. Mary Barker 6,528

Plot #I‐7 Slidematic 4,209

Plot #I‐9 Rock Road Company 101,648

Plot #I‐10 Kennametal, Inc. 3,241

Plot #I‐11 Fitzgerald Equipment Company 15,296

Plot #I‐12 Parkside Warehouse 14,423

Plot #I‐12A Parkside Warehouse 9,827

Plot #I‐13 Barker Rockford Company 37,723

Plot #I‐14 Clinkenbeard 8,071

Plot #I‐16 Airport Pet Lodge 421

Plot #I‐18 Freeway Rockford 7,995

Plot #I‐19 Parkside Warehouse 19,454

Plot #I‐21 Mechanical Tool 3,411

Plot #I‐22 Willett, Hofmann & Associates 9,348

Plot #I‐25 Helm Group (Mechanical) 14,756

Plot #I‐25A Helm Group (Mechanical) 24,439

Plot #I‐26 JS Cad Scan Technologies 5,624

Plot #I‐27 YMA Inc dba Airport Shell 12,304

Plot #I‐28 Comet Fabrication 5,888

Plot #I‐28B Comet Fabrication 8,587

Plot #I‐28C Comet Fabrication 6,289

Plot #I‐33 Northwest Pallet 24,114

Plot #RM‐2, Sjostrom & Sons 11,871

Total land lease‐off airport 467,706$

AIRFEST REVENUES

Airshow

4915 Air Show‐ Concessions 100,000

4916 Air Show ‐ Sponsors 200,000

4917 Air Show ‐ Special Promotions/Packages 65,000

4918 Air Show ‐ Misc 40,000

4919 Air Show ‐ Admission 220,000

Total AirFest 625,000$

AIRPORT SERVICE FEES

4950 Fuel permits

Fuel permits are based upon fuel dispensing criteria.

Emery Air Charter 1,125

Courtesy Aircraft 375

Kaney Aviation 375

Pride Aircraft ‐

Charles Thomas 375

UPS 375 Total fuel permits 2,625$

4955 Late fees

1,000$ Fees paid after due date are assessed a late fee in accordance with lease agreement.

A lease is considered a land lease if the land is leased and the lessee has added an improvement (building).

37


4970 Snow removal/maintenance fee

12,000$

4971 International rubbish disposal fee

50,000$

4972 Deicing chemical application fee

160,000$

4975 Other airfield service fees

30,000$

OTHER

4930 Commercial operating agreements

HSI Investments, LLC, A19, A28 28,530 sq.ft. 7,988

Aircraft Systems, A1 8,064 sq.ft. 2,258

Avionics Place, A4 7,300 sq.ft. 2,044

Courtesy Aircraft, A3 10,682 sq.ft. 2,991

Emery Air Charter, A8, A12, A23 134,023 sq.ft. 37,526

Groom, Norm, T/H B6 1,449 sq.ft. 406

Kaney , A2, A29 25,520 sq.ft. 7,146

Pride Aircraft, A20 4,620 sq.ft. 1,294

Alpine Aviation, A9 2,480 sq.ft. 694

Heritage Aero, A15 12,000 sq.ft. 3,360

Superior Plane Aircraft Coating, A27 3,000 sq. ft. 840

Non‐tenant commerical operators 5,000 Total commercial operating agreements 71,547$

4940 Foreign trade zone fees

General purpose/subzones ‐ various sizes (4) 75,000

Developer greenfield sites (10) 15,000

Service fees 15,000

Total foreign trade zone fees 105,000$

4960 Quarry feesRoyalties‐ Rockford Sand & Gravel 130,000$

4980 Stormwater fees

Budgeted storm water fees. (currently UPS is the only user)

United Parcel Service ($12,500 x 12) 150,000$

4990 Miscellaneous

Vending machine commissions 5,500

Scrap iron 1,800

Airport fines 2,000

Other 45,000

Total miscellaneous 54,300$

Charges to airport tenants for contracted snow removal and maint. services.

Budgeted Commercial Operating Agreements are based upon the actual square footage of the building footprint for

tenants inside the fence @$.28/sq.ft./yr. Non‐tenants doing business inside the fence pay a fee of $250.

Fees related to the disposal of international rubbish from flights.

Fees for labor, equipment and material related to deicing of tenant requested areas.

Fees for other services such as badging, training, finger printing and escorting.

38

Operating Expenses Summary

The Authority was broken down into seven departments with respective Directors or Managers responsible for each independent budget. You will have the opportunity to better understand the goals and objectives of the organization and how the various expenses align with our strategic plan. The eight departments include Administration and Finance, Facilities and Maintenance, Operations, Marketing, Terminal, AirFest, Cargo Development and Passenger Development. Each departmental budget is presented in the subsequent sections. This includes a summary of the department, goals for the coming year, the budget, and justifications. Each department except for AirFest is directly related to all revenue sources. Without the staff in each of these departments working together the revenue sources would not continue to evolve and strengthen. As the charts below show that a majority of the costs are related to directly operating the airport and maintaining all the infrastructure and buildings.

The following pages are a combined report by department comparing to the prior year’s budget. The report allows for a better understanding of how certain costs are allocated.

39

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61

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Air

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61

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61

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61

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63

22

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62

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63

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ipm

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tal

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86

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64

80

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65

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66

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66

70

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mit

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67

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67

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83

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Raw

mat

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75

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age

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76

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76

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plie

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77

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78

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78

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5

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79

01

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79

02

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78

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MM

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70

97

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5

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84

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84

15

Pro

per

ty T

axes

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TAL

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ER-

29

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91

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0

75

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%

FISC

AL

YEA

R T

OTA

LS1

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4,3

50

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6

83

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78

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%

OTH

ER

42

Finance and Administration Department Summary The Finance and Administration Department is responsible for the administration and financial management of policies and procedures of the Greater Rockford Airport Authority. The department includes the Executive Director and the strategic goals and economic development planning. The functions of the department which is led by the Chief Financial Officer include financial planning and analysis, human resource development, risk management, property development and grant administration. The Department establishes and maintains safeguards to protect the Authority’s assets, which includes risk management duties. The Authority has over one hundred tenants and the Department administers and manages all leases. The Department issues fuel permits, commercial operating agreements, and prepares annual Disadvantage Business Enterprise Reports and Occupational Safety Health Administration Reports. Other areas of responsibility include all human resource functions including, but not limited to, policies and procedures, hiring, labor union negotiations issues, personnel files, and insurance related issues. The Department also has oversight of procurement and information technology services. The following outlines the objectives for the department. We have included those below and future budgets will report the progress of these strategic objectives based on the targets outlined. Department initiatives to move the goals are listed below. Also noted are prior year results.

RevenuesGrowth in diversified revenue

sources.

Greater than 80% of revenues

from sources other than UPS.

Monitor annual report, schedule of major

revenue sources.

Performance appraisals

90% of all new hires rate

satisfactory or better in the first

6 mos. of employment

Employee turnoverTurnover rate at 8% or less

annually.

Identify organizational wide training priorities

to improve job skills and knowledge.

Create and implement training/ professional

development program.

Assessment of current and future workforce

needs – 3 – 6 months,

Create plan and business case for succession

plan 6-12 months,

Approved resources in budget to support

leadership program. – 12 months,

Define processes, training and development

program 12 - 18 months,

Communicate, execute and measure plan

results for first year 18 – 36 months.

INITIATIVES

Maintain financial

stabilityMaintain adequate reserves.

Maintain reserves equal to or

greater than 4 months of

expenses based on 3 year

history.

Monitor reserves monthly.

Implement initiatives for

succession planning

Development of written

succession plan

Creation, implementation and

measurement of plan within 36

months.

OBJECTIVES MEASURES TARGETS

Attract and retain a

qualified and workforce.

Performance appraisals done annually and

quarterly during first year of position.

Promote learning and

growth

Professional development and

or training opportunities and

participation.

Hours of training or

professional development

43

Finance and Administration Department Summary (continued)

Present plan in 6-9 mos.

Accept plan in 9-12 mos.

Develop collaborative opportunities for

promotion, education and recruitment through

various businesses and community events.

Go Global, Air Show. Ice Sculpting Contest (clean

snow), Cub Scouts, College/High School Interns.

Maintain strong working relationship with

consulting firm, Point Trade Services, Inc.

Continue development of strong regional

network of economic development partners

through Leadership Forum, Go Global, visits and

attendance at their events.

Increase regional public awareness through

public speaking opportunities. Go Global,

Stateline World Trade Association and other

external networking opportunities.

Remain current on FTZB regulations, complying

with all requirements of the program of the FTZ

Board and CBP.

Throughput volume (product in

and out).

Increase throughput by $1

billion within five years.

Retain active membership in NAFTZ,

participating in committees/task forces,

attending meetings and speaking.

Provide a world class safe

and secure airport.Workplace Safety

5 or less OSHA recordable event

annually.

Research, prepare and present plan to

understand MRO market.

Excel as a community

partner for the region.

Participation and collaboration

in the community.

Continue and/or increase

participation.

TARGETS INITIATIVESOBJECTIVES MEASURES

Expand FTZ Activity

Increase number of activated

sites/subzones

Add an average of one new FTZ

operator/year.

Service Fee revenue to GRAA.

Annually generate revenue

through fees to cover 100% of

total RFD operating cost for FTZ

#176.

Develop a business plan

for heavy metal MRO

operations

Business plan for heavy metal

MRO

Goals and Objectives To ensure the operation and maintenance of a high quality, customer service oriented, financial self-sufficient airport system and to support the purpose and goals of the Authority by providing exceptional financial and administrative management. Increase the economic impact of RFD to the region and the State of Illinois.

Annual Receipt of the GFOA budget award.

Monthly Reports presented to Board and Staff on a timely basis.

Periodic review of airport rates and fees with the goal of keeping the cost competitive to the market place.

Receipt of GFOA certificate of achievement for excellence in financial reporting.

Assure that cash flows meet the Authority’s needs while maximizing investment opportunities.

Research and investigate other revenue sources for the Authority including but not limited to advertising, fuel farming, and new lease development.

Investigate and plan future funding strategies for large capital improvements and projects to be presented to the Planning and Finance Committee.

Continue to develop opportunities for additional business opportunities at the airport to include aviation related education and MRO operations.

Annual receipt of the GFOA Popular Annual Financial Report.

44

Finance and Administration Department Summary (continued)

Implementation and support of an Asset Management plan.

Work on tenant relations and to include a more viable communication plan through quarterly meetings to include an online tenant service/maintenance request form.

Develop a plan that supports growth and enable the flexible use of current facilities, create a database with available facilities to include all pertinent data/information.

Evaluate scenarios when developing planning alternatives of available facilities/properties.

Work on the development of a conceptual timeline of improvements to our facilities.

Prior Year Results Annual budget award and financial reporting certificate from GFOA received.

Training for staff in various areas.

Second award for the GFOA Popular Annual Report Award.

45

Finance and Administration Department BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET


PERSONNEL SERVICES

5400 Insurance 117,106$ 112,586$ 80,517$ 106,454$ 98,616$ 112,568$ 99,116$ 5401 Insurance‐retirees 95,991 (83,121) 80,472 80,472 110,617 95,979 87,189 5450 Overtime 373 168 494 27 ‐ 20 ‐ 5500 Payroll taxes 68,312 79,123 69,705 79,882 52,422 75,183 53,325 5560 Pension contribution 107,103 87,284 68,898 78,339 74,476 71,042 63,076 5561 Pension contribution GRAA Pebsco 11,478 ‐ ‐ ‐ 8,500 ‐ 8,500 5600 Salaries/wages 869,525 955,772 635,515 695,374 714,471 677,904 693,712 5605 Outside labor ‐ ‐ ‐ 1,615 ‐ 15,949 ‐ 5750 Training 8,997 889 710 234 2,250 1,000 1,250 5800 Workers compensation insurance 6,435 1,750 1,920 2,168 2,103 2,383 3,469

TOTAL PERSONNEL SERVICES 1,285,319 1,154,451 938,232 1,044,565 1,063,456 1,052,027 1,009,636 (53,820)$ ‐5.06%

CONTRACTUAL SERVICES

6050 Audit 36,871 28,765 29,629 30,535 30,915 31,806 34,015 6100 Building repair ‐ ‐ 4,710 ‐ ‐ ‐ ‐ 6140 Conferences & meetings 12,578 18,199 6,553 8,042 6,375 8,560 6,575 6160 Consulting services 66,662 72,427 91,373 116,732 98,500 105,833 109,000 6201 Energy‐electric 44,209 36,956 25,116 20,561 25,000 29,751 24,000 6202 Energy‐natural gas 14,490 9,674 8,018 2,966 7,000 11,976 7,800 6300 Engineering services 50,882 47,501 42,569 64,359 41,000 51,324 46,000 6321 Equip.maint‐repairs/services 142 ‐ ‐ ‐ ‐ ‐ ‐ 6322 Equip.maint‐service contracts 17,722 15,696 14,351 14,299 14,050 13,126 13,590 6350 Equipment rental 9,418 8,065 7,726 7,269 7,960 5,755 5,930 6400 Insurance 184,974 153,559 161,186 154,779 160,000 158,728 164,000 6402 Insurance deductible ‐ ‐ ‐ ‐ 5,000 5,662 5,000 6440 Legal notices 3,963 3,025 2,253 3,172 4,025 4,683 4,000 6451 Legal services‐general 51,453 79,571 81,520 149,626 50,000 79,400 60,000 6452 Legal services‐personnel 2,953 13,361 1,009 624 6,000 9,034 3,000 6453 Legal services‐other 900 2,700 5,675 2,100 1,800 2,626 1,000 6480 Licenses, titles & inspections ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6510 Medical exams 924 1,158 ‐ 25 500 261 500 6540 Membership dues 28,916 48,835 18,110 36,804 37,980 34,777 35,616 6600 Other 18,437 2,208 5,299 4,953 5,000 2,057 5,000 6640 Payment services 10,052 7,666 6,011 6,142 6,100 5,844 5,848 6700 Postage 5,754 3,480 3,714 3,357 3,600 4,151 3,800 6730 Printing 2,046 2,345 2,205 1,609 2,000 1,767 2,000 6751 Telephone‐cellular 6,065 6,155 4,435 3,249 2,900 3,298 3,960 6752 Telephone‐local 27,521 25,152 14,948 18,899 18,611 25,435 23,790 6753 Telephone‐long distance 2,776 410 ‐ ‐ ‐ ‐ ‐ 6800 Travel & transportation 24,822 50,484 26,816 19,990 28,720 30,901 28,720 6850 Utilities 1,152 1,162 1,150 1,079 1,500 1,129 1,200

TOTAL CONTRACTUAL SERVICES 625,682 638,553 564,377 671,168 564,536 627,881 594,344 29,808$ 5.28%

COMMODITIES

7100 Building repair 6 ‐ 3,847 442 500 309 500 7140 Conferences & meetings 9,147 7,745 10,305 11,790 15,100 8,675 14,900 7200 Equipment 5,050 5,058 11,830 2,160 5,980 3,527 2,000 7380 Other 3,196 1,799 643 1,846 1,000 2,207 2,000 7540 Signage ‐ 280 ‐ 237 ‐ ‐ ‐ 7580 Software 2,941 395 32 1,728 3,700 67 500 7600 Subscriptions 4,083 4,823 3,871 2,095 2,327 4,140 3,470 7750 Supplies‐office 9,660 6,824 6,492 6,396 8,300 5,703 7,000

TOTAL COMMODITIES 34,083 26,923 37,020 26,695 36,907 24,629 30,370 (6,537)$ ‐17.71%

DEPARTMENT TOTAL 1,945,085$ 1,819,927$ 1,539,629$ 1,742,428$ 1,664,899$ 1,704,537$ 1,634,350$ (30,549)$ ‐1.83%

CODE/LINE ITEM, Department 04%Chg/FY15

Budget

$Chg/FY15

Budget

46

Finance and Administration Budget Justifications

PERSONNEL SERVICES

5400 Insurance

Health, dental and life insurance costs for employees and eligible retirees.

Health insurance

The annual cost for the Authority at 80% is as follows by each type of coverage:

Employee = $6172.50/$4117.00

Employee + Spouse = $18,893.76/$17,910.80

Employee + Children = $10,785.00

Family = $15,258.06

Medicare Supp. D = $1,806.43

Dental insurance

The annual cost for dental is based on cobra rates as the program is self‐funded.

Employee = $389.88

Family = $977.76

Life insurance

Employees:

Health 89,189

Dental 5,942

Life 3,985 Total employee insurance 99,116$

5401 Retiree insurance

Health 79,570

Dental 7,521

Life 97 Total retiree insurance 87,189$

5500 Payroll taxes

FICA ‐ 6.2% of base wage up to $118,500 38,980

Medicare ‐ 1.45% of base wage 10,059

State unemployment ‐ 3.75% of the first $12,960 4,286

Total payroll taxes 53,325$

5560 Pension contribution

IMRF pension fund ‐ 10.25% 63,076$

5561 Pension contribution ‐ 475 plan

Executive Director match 8,500$

5600 Salaries

Commissioner stipends ‐ Seven commissioners 12,600

Salaries ‐ 8 full time employees 681,112

Total salaries 693,712$

5750 Training

Procurement/finance/software 250

College courses ‐ aviation/business/IT 1,000

Total training 1,250$

The annual cost for the Authority for medicare eligible retirees is listed below; all those not medicare eligible have the

same coverage as employees. The Authority is partially self funded and estimates for this partial funding are incorporated

into the annual costs noted below.

Life and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life at $.23/$1000

and AD&D at $.05/$1000. Eligible retireees are also provided with a $2,500 life insurance benefit.

47


5800 Workers compensation insurance 3,469$


6050 Audit

Independent auditor 16,000

GFOA award applications ‐ Financial reporting and budget 715

Grant audits 16,000

Report production costs 1,300

Total audit 34,015$

6140 Conferences & meetings

Chamber of Commerce, State of the City, County, etc 1,100

AAAE annual conference 800

Great Lakes AAAE conference 650

Allegiance air service planning conference 125

Other conferences ($300 ea) 900

Business lunches/dinners 3,000

Total conferences & meetings 6,575$

6160 Consulting services

Information technology consultant 15,000

Other 2,000

HR Support 4,000

FTZ Administration 88,000

Total consulting services 109,000$

6201 Energy‐electric (60 Airport Dr.) 24,000$

6202 Energy‐natural gas (60 Airport Dr.) 7,800$

6300 Engineering services

Cost for professional engineering services rendered by outside engineering firms.

Crawford, Murphy & Tilly, Inc. 45,000

Other 1,000

Total engineering services 46,000$

6322 Equip maint‐service contracts

Software support ‐ Best FAS 1,700

Software support ‐ Sage 4,800

Software support ‐ Peopletrak 650

Copy machine ‐ usage 4,000

Internet security 1,940

Telephone system 500

Total equipment maintenance‐service contracts 13,590$

6350 Equipment rental

Postage/scale meter lease ($180/qtr) 720

Copy machine ($433/mo) 5,210

Total equipment rental 5,930$

48


6400 Insurance

Aviation liability 35,000

Automotive 26,000

Property 85,000

Public officials liability 18,000

Total insurance 164,000$

6402 Insurance deductible 5,000$

6440 Legal notices

Annual receipts & disbursement report 1,500

Bid documents 1,500

Public meeting notices & other 1,000

Total legal notices 4,000$

6451 Legal services‐general 60,000$

6452 Legal services‐personnel 3,000$

6453 Legal services‐other 1,000$

6510 Medical exams 500$

6540 Membership dues

EDC ‐ Rockforward program ‐ voucher trade for $5,000 25,000

ACI ‐ NA 5,500

AAAE Legislative Membership 1,750

Chamber of Commerce (Belvidere, Freeport, Loves Park‐Machesney Park, & Rockford) ‐ voucher trade 1,500

National Air Transport Association 266

National Institute of Governmental Purchasing 425

American Association of Airport Executives (AAAE) 275

Illinois Certified Professional Accountants Society (ICPA) 225

American Certified Professional Accountants Society (AICPA) 290

Government Finance Officers Assoc (GFOA) ‐ 1 160

Association of Airport Internal Auditors (AAIA) 125

Airport Purchasing Group (APG) 100

Total membership dues 35,616$

6600 Other ‐ Contractual services not itemized in other accounts. 5,000$

6640 Payment services

Bi‐weekly payroll processing & quarterly reports 5,748

Other 100

Total payment services 5,848$

6700 Postage

Overnight mail 500

Postage, metered (approx $275/mo) 3,300

Total postage 3,800$

Publication costs for public notices, including bid documents, Treasurer's Report, personnel notices.

49


6730 Printing

Checks, statements, HR forms 500

Photographs 500

Business cards 500

Miscellaneous 500

Total printing 2,000$

6751 Telephone‐cellular 3,960$

6752 Telephone‐local

IP phone and internet 6,390

Remote internet connection 600

Back up internet connection 2,400

Ifiber 7,200

Answering service 7,200

Total telephone ‐ local 23,790$

6800 Travel & transportation (airfare/hotel/per diem)

AAAE National meeting/training (4n) 1,590

GFOA/AAAE meeting/training (4n) 1,590

Allegiant air service meeting (3n) 1,330

Other business meetings DC, etc. 5,000

Other business meetings (3t) (2n) 3,210

Director business expense 12,000

Mileage 4,000

Total travel & transportation 28,720$

6850 Utilities

Water 900

Sewer 300

Total utilities 1,200$

COMMODITIES

7100 Building repair

Materials for administration and operations building. 500$


In‐house lunch/meetings 2,000

Bottled water 1,300

Employee events 4,800

Employee/Board Luncheon (monthly) 2,500

Wellness program 2,300

Meeting supplies 2,000


7200 Equipment

Computers ‐ replacements (1) 1,500

Printer (2) 500

Total equipment 2,000$

7380 Other ‐ Commodities not itemized in other accounts. 2,000$

Amounts include an estimate of $550/trip airfare, lodging of $185/night and M&I of $75/day for domestic and

$2900/airfare, lodging $300 and M&I of $100/day for international.

50


7580 Software

Other 500

Total software 500$

7600 Subscriptions

Digicast email (AAAE) 1,710

Internet ‐ Winnebago County 1,260

Other (includes publications) 500

Total subscriptions 3,470$

7750 Supplies‐office

Copier & printer paper/fax cartridges 1,500

Office supplies 4,300

Stationery/envelopes for stock 1,000

Binding machine 200

Total supplies‐office 7,000$

51

Facility and Maintenance Department Summary The Facilities and Maintenance Department is responsible for maintaining greater than 17.5 million square feet of runways, taxiways, aprons and roadways, including keeping them free of snow, ice and debris, as well as maintaining the airfield lighting system. This also includes maintaining 20 buildings and properties owned by the airport authority as well as a large fleet of vehicles and equipment; directing and coordinating construction projects; and the oversight of the glycol retention/treatment facility. Following are the strategic objectives outlined in the most recent plan. Department initiatives to move the goals are listed below. Also noted are prior year results.

Performance appraisals90% of all new hires rate satisfactory or better in the f irst 6 mos. of employment

Employee turnover Turnover rate at 8% or less annually.

Identify organizational w ide training priorities to improve job skills and know ledge.Create and implement training/ professional development program.Ensure safe operational status during times of severe w eather.

Enhance safety, capacity, and marketability w ith the follow ing: improved nav-aids, perimeter roadw ay, airport control tow er, rescue and f irefighting, hydrant fueling.

Workplace Safety 5 or less OSHA recordable event annually.

Work order system that improves eff iciencies and measures future needs.Preventative maintenance checks and services (PMCS) and scheduled equipment replacement program.

Energy/Fuel Savings3% reduction in energy usage per year.

Utilization and expansion of conservation and alternative energy opportunities.

Kishw aukee Street entrance Design and landscape plan for stone pillars at Kishw aukee Street entrance.

Falcon Road rehabilitationProactively w ork w ith state/local agencies to enable funding for Falcon Rd. rehabilitation.

Work w ith local utility providers to enhance safety and operational integrity of RFD.

Plan to evaluate airport projects to incorporate the eff icient placement of all future utility infrastructures.

Completion of an environmental w ork plan.

Comprehensive environmental plan.

Improve and upgrade infrastructure condition

Balance betw een new opportunities and maintenance of existing infrastructure

Make investments based on budget, capital, and master plan


Enhancement of landside infrastructure and aesthetics

Airside/street side and facility improvements.

Environmental w ork plan.


Provide a w orld class safe and secure airport.

Attract and retain a qualif ied and w orkforce.

Performance appraisals done annually and quarterly during f irst year of position.

Promote learning and grow th



FAA Annual Certif ication 0 deficiencies

Goals and Objectives The overall goal of the Facilities and Maintenance Department is to insure that the Chicago Rockford International Airport’s airfield infrastructure and properties are safe and secure for all those using the airport.

52

Facility and Maintenance Department Summary (continued)

Schedule fact finding visits to other airports to study “best practices”.

Make available increased, outside training opportunities for department personnel.

Develop performance metrics and gather specific department information to be utilized in preliminary asset management implementation.

Maintain a snow removal equipment fleet in a manner that insures exceptional reliability during winter weather operations.

Snow removal planning and coordination with a goal to maintain a safe and open airfield under any winter weather condition. Annual tenant snow removal meeting takes place the 3rd week in October annually. In addition a UPS/RFD snow removal meeting the same time annually.

Complete a pavement marking evaluation and create rotation plan for all future pavement marking changes and updates.

Investigate and evaluate opportunities to save energy costs in all major airport facilities while reducing RFD's energy needs.

Continue surplus property disposal program for the sale of old and unused equipment to contribute to future capital purchases.

Prior Year Results

All staff had training opportunities during the year. One staff member attended the annual snow symposium in Buffalo, NY this past year. One staff member attended the annual City Works conference in Salt Lake City, UT.

RFD received a zero discrepancy inspection by the FAA during the annual certification inspect held April 6, 7 and 8th.

RFD hosted DBQ airport during the year. DBQ staff members visited RFD and discussed airport maintenance issues and best practices.

Falcon Road rehabilitation was 95% completed during the year.

Staff has been working with the Winnebago County work crew during the year. The work crew has assisted with AirFest 2014, spring trash pickup on airport property and several brush and tree clearing projects.

Implementation of additional energy upgrade to reduce usage and costs by 6% in the last year.

Annual review of snow and ice control plan, tenant snow removal meeting and UPS snow removal meetings held annually during the 3rd week in October.

Staff began a pavement marking removal and remarking program during the year with positive results.

Approximately $70,000 worth of surplus equipment and materials were sold through the State of Illinois Bid online auction site and eBay during the year.

53

Facilities and Maintenance Department Budget

ACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET


5400 Insurance 191,480$ 208,933$ 169,261$ 186,806$ 199,760$ 180,935$ 199,310$

5450 Overtime 116,196 101,589 108,043 112,244 51,114 101,149 63,149

5451 Double time 53,457 28,542 21,976 59,947 7,805 36,550 24,928

5500 Payroll taxes 95,805 93,693 76,222 78,813 86,060 76,333 89,739

5560 Pension contribution 143,999 151,092 122,558 138,527 120,719 126,925 110,879

5600 Salaries/wages 1,148,567 1,156,072 898,632 919,030 927,510 880,982 976,287

5610 Pager pay 5,200 5,200 7,000 7,800 7,800 7,855 7,800

5700 Tool allowance 2,350 2,400 2,200 2,050 1,800 1,800 1,200

5750 Training 6,674 5,518 1,200 5,144 5,250 1,245 5,250

5800 Workers compensation insurance 145,705 100,734 95,939 77,037 70,440 75,994 80,929

5900 Uniforms 5,628 6,031 8,209 7,838 7,099 7,439 7,099

5901 Uniforms‐lost,damaged,replaced 340 137 1,102 914 500 1,457 500

5903 Uniforms‐other 5,341 5,434 5,170 3,569 6,400 1,611 6,400

TOTAL PERSONNEL SERVICES 1,920,741 1,865,376 1,517,513 1,599,718 1,492,257 1,500,273 1,573,470 81,213 5.44%

6040 Airfield repair 7,686 1,327 17,922 14,170 32,000 ‐ 56,000

6100 Building repair 26,353 32,909 54,881 52,964 37,500 35,794 37,500

6140 Conferences & meetings 903 3,804 581 515 112

6161 ARFF contractual services 858,724 1,118,792 ‐ ‐ ‐ ‐ ‐

6162 ARFF training 28,000 13,695 ‐ ‐ ‐ ‐ ‐

6201 Energy‐electric 195,555 174,993 118,639 114,401 128,525 156,510 135,000

6202 Energy‐natural gas 36,874 30,139 57,603 73,315 40,000 79,788 47,000

6321 Equip maint‐repairs/services 36,397 32,416 33,328 56,203 12,415 25,388 12,415

6322 Equip maint‐service contracts 91,456 84,619 58,828 47,852 50,217 43,324 65,217

6350 Equipment rental 32,065 21,381 51,677 37,965 58,400 27,752 35,800

6410 Landscaping 167 6,183 8,006 7,586 6,000 3,125 6,000

6480 Licenses, titles & inspections 13,087 8,989 1,475 1,713 1,500 1,483 1,500

6510 Medical exams 1,298 973 1,668 1,320 920 2,179 920

6540 Membership dues 1,055 920 35 151 150 ‐ 150

6600 Other 686 ‐ 94 237 1,000 15 1,000

6670 Permits & testing 2,256 1,298 175 2,575 1,400 316 1,400

6751 Telephone‐cellular 14,647 14,607 9,468 5,689 6,000 6,741 5,400

6752 Telephone‐local 15,472 24,570 17,624 16,702 14,750 18,684 14,520

6753 Telephone‐long distance 294 1 ‐ 3 ‐ 6 ‐

6800 Travel & transportation 10,375 9,809 1,163 2,373 4,800 3,485 4,800

6850 Utilities 4,909 6,942 7,764 9,221 6,200 12,333 12,900

6900 Vehicle maintenance 16,286 14,837 28,111 22,921 22,000 22,343 24,800

6950 Waste removal 11,015 10,489 11,032 8,750 11,350 9,315 9,376

TOTAL CONTRACTUAL SERVICES 1,405,560 1,613,690 480,072 477,027 435,127 448,692 471,698 36,571 8.40%

7100 Building repair 16,175 13,380 17,909 15,366 22,500 25,135 22,500

7140 Conferences & meetings 10,408 5,788 10,683 10,890 4,800 8,593 4,800

7200 Equipment 31,048 25,890 16,505 24,839 25,130 24,694 21,500

7240 Fence/gate 5,334 5,081 3,960 1,599 5,200 502 3,200

7271 Fuel‐diesel 110,283 80,008 116,263 135,627 87,350 89,523 87,350

7272 Fuel‐unleaded 32,555 38,653 41,992 43,139 36,050 38,242 36,050

7273 Fuel‐other 1,275 322 1,022 1,704 1,500 2,527 1,500

7300 Landscaping 1,479 4,048 3,506 3,097 3,600 3,040 3,600

7380 Other 305 913 ‐ 77 1,000 78 1,000

7400 Pavement marking 62,322 53,631 75,054 57,237 83,400 29,576 71,000

7440 Pavement repair 3,460 3,150 18,550 18,169 22,000 40,844 28,500

7500 Raw materials ‐ 11,283 487 253 7,200 159 7,200

7501 Raw materials‐deicing only 440,148 254,852 420,694 465,848 434,640 267,073 418,000

7540 Signage 1,813 17,409 11,686 832 12,500 8,493 12,500

7580 Software 2,240 5,110 ‐ 1,994 3,000 2,269 3,000

7600 Subscriptions 425 3,451 2,014 4,179 2,605 4,283 2,605

7660 Supplies‐janitorial 4,609 5,217 2,968 3,660 5,000 2,860 5,000

7690 Supplies‐lighting/electrical (airside) 63,880 77,132 80,112 64,160 80,000 51,703 80,000

7720 Supplies‐snow removal wafers, poly‐stee 68,498 29,532 52,505 64,924 56,520 49,955 56,520

7750 Supplies‐office 1,876 2,334 942 421 600 389 600

7780 Supplies‐other 2,849 3,312 3,925 3,113 2,500 2,986 2,500

7782 Supplies‐hardware 9,903 9,119 6,272 10,586 7,000 5,710 7,000

7810 Supplies‐specialty 924 13,950 ‐ ‐ ‐ 4 ‐

7830 Supplies‐steel stock 842 796 646 330 2,800 541 2,800

7850 Supplies‐storm sewer/drain 872 362 ‐ ‐ 1,500 398 1,500

7880 Supplies‐welding 4,026 4,313 4,891 4,123 5,000 2,130 5,000

7901 Maint‐licensed vehicles 13,666 11,019 19,005 17,795 12,350 17,729 12,350

7902 Maint‐equipment 88,756 68,695 68,402 78,953 78,400 89,488 78,400

TOTAL COMMODITIES 979,969 748,751 979,992 1,032,917 1,004,145 768,926 975,975 (28,170) ‐2.81%

OTHER

8400 Glycol retention treatment facility 101,606 107,684 101,179 81,851 91,440 113,590 109,190

8410 Landfill environmental costs 233,061 353,464 (214,189) 191,426 135,000 324,486 120,000

8415 Property taxes 70,298 41,077 99,586 62,219 65,000 50,258 63,000

TOTAL OTHER 404,966 502,226 (13,424) 335,495 291,440 488,334 292,190 750 0.26%

DEPARTMENT TOTAL 4,711,235$ 4,730,042$ 2,964,152$ 3,445,156$ 3,222,969$ 3,206,225$ 3,313,333$ 90,364$ 2.80%

$Chg/FY15

Budget

%Chg/FY15

BudgetCODE/LINE ITEM, Department 05


COMMODITIES

PERSONNEL SERVICES

54

Facilities and Maintenance Department Justifications

5400 Insurance

Health insurance


Employee = $6172.50/$4117.00

Employee + Spouse = $18,893.76/$17,910.80


Family = $15,258.06

Dental insurance


Employee = $389.88

Family = $977.76

Life insurance

Health 180,718

Dental 11,884


5450 Overtime

Estimated 1,825 hours of overtime for hourly employees. 63,149$

5451 Double time

Estimated 460 hours of overtime for hourly employees. 24,928$

5500 Payroll taxes







5600 Salaries

Includes 17 full time employees 976,287$

5610 Pager pay (2ee @ $100/wk) 7,800$

5700 Tool allowance (4ee @ $50/mo) 1,200$

5750 Training

Environmental 1,000

Energy efficiency 1,250

Other 3,000



5900 Uniforms 7,099$

5901 Uniforms ‐ lost/damage/replacement 500$

PERSONNEL SERVICES

The Authority is partially self funded and estimates for this partial funding are incorporated into the annual costs noted

below.

Life and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life at

$.23/$1000 and AD&D at $.05/$1000.

55


5903 Uniforms ‐ protective clothing

Protective clothing allowance 6,400

Total other uniforms 6,400$

6040 Airfield repairContractual services for repairs to lighting system, pavement surfaces, pavement markings, and plumbing

systems. 56,000$


Overhead door repairs 3,000

Automatic door repairs 2,000

Pest control 4,100

Rug runners/facility entrances 4,000

Bldg security (Term, Prof, Ops) Fire/ADT or other 4,000

Sewer/drainage jetting and pumping 6,700

Other 13,700

Total building repair 37,500$

6201 Energy‐electric 135,000$

6202 Energy‐natural gas 47,000$

6321 Equip maint‐repairs/services

HVAC units 7,500

Emergency generators ‐ airfield 2,715

Building automation system 1,200

Radio repairs 1,000

Total equipment maintenance‐repairs/services 12,415$


Copy machine usage 192

Weather service 2,000


Lawn mowing 33,000

Elevator 4,000

Alarm Monitoring 3,000

Asset management system annual contract 15,000

Green screen development ‐ energy efficiency tracking page 2,500

Other 5,000



Aerial 80' lift for apron lighting (UPS) 11,500

Specialty equipment attachments 1,000

Copy machine 500

Building maintenace equipment 5,000

Temporary utility meters 200

Fire hydrant 1" water meter (yearly) 200

Other 17,400


6410 Landscaping 6,000$


Contractual service costs for the repair or modification to various airport owned and maintained buildings including pest

control.

56


6480 Licenses, titles, inspections & background checks

Rolling stock yearly license plates 400

Trucks/trailers semi‐annual inspections 150

Title services 300

Fire extinguishing test 650

Total license, titles & inspections 1,500$



Water Environment Federation 150

Total membership dues 150$

6600 Other ‐ Contractual costs not itemized in other accounts. 1,000$

6670 Permits & testing

Backflow preventors 900

UPS sanitary lift station certification 500

Total permits & testing 1,400$



IP phone and internet services 14,520

Total telephone‐local 14,520$

6800 Travel & transportation

Energy efficiency 1,800

Other conferences (3ee) 3,000


6850 Utilities

Water (10 meters) 9,600

Sewer (10 meters) 3,300


6900 Vehicle maintenance

Brake rotors turned

Hydraulic pumps/motors/valves/cylinders rebuilt

Specialty fabrication/machine work

Vehicle oil and fluid analysis

Front end alignments

Split‐rim tire repairs

Total vehicle maintenance 24,800$

6950 Waste removal

Biohazard 760

Debris and extra dumpster pick‐ups 3,576

Environmental 2,790

Used parts/oil/fuel filters 2,000

Other 250

Total waste removal 9,376$

Yearly license renewal on all applicable vehicles and trailers and any necessary semiannual inspection.

57



Materials used in connection with the maintenance of all Authority owned buildings not covered by

tenant leases. 22,500$


Water rental and delivery 1,300

Meals for snow removal crews/special event crews 3,000

Miscellaneous 500


7200 Equipment

Computer replacements (2) 2,000

Cameras 1,800

Hand tools/small power tools 5,950

Building automation system field components 2,000

Hose 2,700

Hardware 1,400

Signage 2,000

Battery replacement 850

Wildlife expendables ‐ cracker shells, caps, pyro shells 1,600

Wildlife depredation tools 1,200


7240 Fence/gate ‐ perimeter fence and gate supplies 3,200$

7271 Fuel‐diesel ‐ 25,000g @ 3.3/g 87,350$

7272 Fuel‐unleaded ‐ 12,000g @ 3.2/g 36,050$

7273 Fuel‐other 1,500$

7300 Landscaping

Supplies associated with turf maintenance of all Authority grounds not covered in tenant lease. 3,600$

7380 Other ‐ Costs of commodities not itemized in other accounts. 1,000$

7400 Pavement marking

Pavement marking paint 34,560

Type I and III glass beads 23,040

Pre‐formed thermo plastic ‐ non‐movement areas 7,500

Other 5,900

Total pavement marking 71,000$

7440 Pavement repairIncludes joint sealer, primers, asphalt, stone, backing rod, rubber seals and other materials directly

associated with pavement repair. 28,500$

7500 Raw materials

Sand 1,700

Gravel 5,500

Total raw materials 7,200$

COMMODITIES

58


7501 Raw materials‐deicing only

Potassium acetate 175,000

Road salt 9,120

Other FAA approved deicing material 23,360

Urea 205,000

Sidewalk ice melt 5,520

Total raw materials‐deicing only 418,000$

7540 SignageRepair & replacement of signage for buildings, infield roadways and airfield directional inserts. 12,500$

7580 Software

Includes upgrades to maintenance related software. 3,000

Total software 3,000$

7600 Subscriptions

Rockford Register Star 200

Internet ‐ Winnebago County 1,680

Other 725


7660 Supplies‐janitorial

Consumable products 3,200

Cleaners 1,000

Strippers/waxes 200

Mop heads/brushes/brooms/bags/etc 600

Total supplies‐janitorial 5,000$

7690 Supplies‐lighting/electrical (airside)

Repair and replacement of existing runway, taxiway, and apron lighting systems. 80,000$

7720 Supplies‐snow removal wafers/poly‐steel bladesBroom core replacements for snow removal equipment. 56,520$


Office supplies 600

Total supplies‐office 600$

7780 Supplies‐other

Other supplies not itemized in other accounts 2,500$

7782 Supplies‐hardware (expendable supplies) 7,000$

7830 Supplies‐steel stock 2,800$

7850 Supplies‐storm sewer/drainDrain tile, culverts, flares, storm drain covers, plates and other replacement items and emergency repair

of airport infrastructure. 1,500$

7880 Supplies‐welding 5,000$

7901 Maintenance‐licensed vehicles

Supplies for approximately 15 vehicles. 12,350$

59


7902 Maintenance‐equipment

Supplies for repair of Authority equipment. 78,400$

OTHER

8400 Glycol retention treatment facility

Electric 65,000

Testing 8,900

Equipment service and repairs 4,800

Chemicals 17,850

Wireless monitoring fees 1,140

Consulting/Engineering/Environmental 8,500

Building automation system field components 1,600

Permit and pest control 1,400

Total glycol retention treatment facility 109,190$

8410 Landfill and environmental costs ‐ legal and engineering costs 120,000$

8415 Property taxesProperty taxes paid for Authority owned properties including land and improvements. 63,000$

60

Operations Department Summary The Operations Department has the overall responsibility for the safe and secure operation of the airfield and airport and is also responsible for passenger service. This includes monitoring and ensuring compliance with all FAA, TSA, Federal, State and Local regulatory requirements; and that all air carriers, general aviation aircraft and airport tenants operate in a safe manner; administrating the airport’s badging, background check and security systems; wildlife control, inspection and oversight of all fueling operations and numerous other responsibilities as defined by FAR 139 and TSA 1542 regulations. Additional duties also include addressing any passenger complaints, questions, and overall customer service within the terminal. The department is also responsible for coordinating with the Facilities and Maintenance Department for maintenance and snow removal performed on and around the runways, taxiways, ramps, and tenant/airline related operational concerns.



Identify organizational w ide training priorities to improve job skills and know ledge.Create and implement training/ professional development program.Ensure safe operational status during times of severe w eather.

TSA Audit 0 deficiencies

Operational Status 0 hours closed


Implement SMS (Safety Management System)

SMS Compliance SMS Compliance. Still being developed based on FAA regulations.


Enhance safety, capacity, and marketability w ith the follow ing: improved nav-aids, perimeter roadw ay, airport control tow er, rescue and firefighting, hydrant fueling.


FAA Annual Certif ication 0 deficiencies






Goals and Objectives The overall goal of the Operations Department is to maintain the safety and security of the Chicago Rockford International Airport for all of our users. Furthermore the department will adhere to the highest level of customer service and compliance with Part 139 of the FAA regulations, (and all TSA 1542 regulations) consistent with operating a world class commercial airport.

Finalize Rules and Regulations, and roll out to tenants during FY 16.

Work with airport fire department and contract security to better develop the incident command structure.

Assist RFD administration staff with the development of the airport safety program.

Stay up to date with the FAA’s SMS changes, and begin to implement SMS program as needed.

Make available increased, outside training opportunities for all department personnel.

Continue to update all RFD Standard Operating Procedures (SOPS).

Complete annual FAA certification process with no discrepancies.

61

Operations Department Summary (continued)

Continue to monitor all policies to insure RFD remains in compliance with FAR 139, all TSA 1542 regulatory requirements as well as appropriate federal, state and local regulations as they relate to airport operations.

Snow removal planning and coordination with a goal to maintain a safe airfield under any winter weather condition. Safety is the number one goal, operational status is secondary.

Monitor and maintain all regulatory documents (AEP, ACM, SICP, SWPPP) and update as necessary.

Increase awareness and training of all personnel operating in the movement area, with the ultimate goal of eliminating runway incursions/vehicle deviations.

Grow the airport ambassador program to 40 active volunteers.

Increase the level of training of the airport ambassadors to include basic first aid, airport emergency training, and live drill participation.

Satisfactorily address all customer service complaints in a timely and positive manner.

Prior Year Results

0 Aircraft accident / incidents.

0 Runway incursions.

0 Vehicle pedestrian deviations.

0 Discrepancies on the FAA Inspection.

0 Discrepancies on the TSA Inspection.

All staff had training opportunities during the year.

Final draft of the ASP approved by TSA.

62

Operations Department Budget

ACTUAL ACTUAL BUDGET ESTIMATE BUDGET


5400 Insurance 61,798$ 77,999$ 59,349$ 45,816$ 59,228$

5450 Overtime 34,093 32,765 11,222 53,737 22,092

5451 Double time 19,863 25,167 5,210 40,601 10,226

5500 Payroll taxes 28,430 32,391 34,128 28,951 40,422

5560 Pension contribution 43,125 54,427 36,937 43,258 45,789

5600 Salaries/wages 340,709 395,967 365,213 296,117 439,998

5750 Training 4,374 9,813 11,500 9,676 10,000

5800 Workers compensation insurance 23,880 29,716 25,392 29,775 29,385

5900 Uniforms 2,992 3,570 3,106 2,808 3,106

5901 Uniforms‐lost,damaged,replaced 266 841 50 603 300

5903 Uniforms‐other 2,124 1,814 2,400 1,063 2,400

TOTAL PERSONNEL SERVICES 561,654 664,470 554,507 552,406 662,948 108,441 19.56%

6140 Conferences & meetings 175 851 3,000 ‐ 2,000

6161 ARFF contractual services 1,142,573 1,038,808 603,000 613,478 618,000

6162 ARFF training 31,050 24,964 7,500 ‐ 6,500

6163 LEO contractual services ‐ 15,677 15,000 8,855 8,000

6322 Equip maint‐service contracts 2,826 1,005 2,735 2,789 3,435

6350 Equipment rental 686 1,858 2,715 1,223 2,715

6480 Licenses, titles & inspections 4,000 7,000 9,500 7,735 9,500

6510 Medical exams 385 291 80 823 1,350

6540 Membership dues 1,295 825 1,345 1,309 1,345

6600 Other ‐ 104 ‐ 25 ‐

6751 Telephone‐cellular 2,856 3,874 3,900 3,785 3,900

6752 Telephone‐local 14,841 19,762 5,100 12,831 3,700

6800 Travel & transportation 7,017 2,612 7,980 1,347 7,980

6806 Customer care/customer service 2,000

TOTAL CONTRACTUAL SERVICES 1,207,704 1,117,631 661,855 654,200 670,425 8,570 1.29%

7140 Conferences & meetings 856 676 1,000 579 1,000

7200 Equipment 6,002 7,313 15,100 1,877 15,180

7580 Software 10,654 1,710 2,000 ‐ 2,000

7600 Subscriptions 814 2,791 4,840 2,987 3,340

7750 Supplies‐office 2,614 2,371 2,900 1,907 2,900

7780 Supplies‐other 7,000

7810 Supplies‐specialty 2,943 7,635 20,000 15,157 20,500

TOTAL COMMODITIES 23,883 22,496 45,840 22,508 51,920 6,080 13.26%

DEPARTMENT TOTAL 1,793,241$ 1,804,597$ 1,262,202$ 1,229,113$ 1,385,293$ 123,091 9.75%

COMMODITIES

$Chg/FY15 Budget %Chg/FY15 BudgetCODE/LINE ITEM, Department 06

PERSONNEL SERVICES


63

Operations Department Justifications

5400 Insurance

Health insurance


Employee = $6172.50/$4117.00

Employee + Spouse = $18,893.76/$17,910.80


Family = $15,258.06

Dental insurance


Employee = $389.88

Family = $977.76

Life insurance

Health 51,656

Dental 4,789


5450 Overtime


5451 Double time


5500 Payroll taxes







5600 Salaries

Includes 8 full time employees and interns 439,998$

5750 Training

FAA Part 139 3,000

TSA 1542/1544 1,000

Airport security coordinator 1,000

Advanced degrees ‐ staff (1) 5,000





PERSONNEL SERVICES


below.


and AD&D at $.05/$1000.

64


5903 Uniforms ‐ protective clothing

Protective clothing allowance 2,400

Total other uniforms 2,400$


Annual tenant meetings for NPDES/Part 139/ TSA1542 2,000$

6161 ARFF contractual services

Contract with the ProTec for all ARFF services. 618,000$

6162 ARFF training

Annual live burn training, simulator & fuel & related expenses 6,500

Total ARFF training 6,500$

6163 LEO contractual services 8,000$


Fingerprint/Scan system maintenance 700

Copy machine usage 210

Weather service 2,000




Aircraft rental 1,500

Copy machine 1,215


6480 Licenses, titles, inspections & background checks

Finger printing and security threat assessments 9,500


6510 Medical exams 1,350$


AAAE 1,100

Aircraft rescue & fire 175

Great lakes chapter AAAE 70




IP phone and internet services 3,700

Total telephone‐local 3,700$


Airport security coordinator 1,330

Security system training (travel, lodge, meals) 1,330

ASOS, wildlife and facility management 5,320



Amounts include an estimate of $550/trip airfare, lodging of $185/night and M&I of $75/day for domestic.

65


6806 Customer care/customer service

Amounts for issues for passengers 2,000$


Annual 139 table top 500

Meals for snow removal crews/special event crews 500


7200 Equipment

Wildlife tools 1,600

Computer replacements (5) 5,080

Decelrometer 3,500

Handheld radios 2,000

Security system surveillance cameras 3,000


7580 Software

ATTN Digicast training 2,000

Total software 2,000$

7600 Subscriptions

Internet ‐ Winnebago County 840

Weather command 500

Flight explorer 2,000


7750 Supplies‐office ‐ badges etc.

Badging supplies 1,400

Office supplies 1,500

Total supplies‐office ‐badges etc. 2,900$

7780 Supplies ‐ other

Volunteer program supplies and recognition 6,500

Other 500

Total supplies‐other 7,000$

7810 Supplies‐specialty

Life safety equipment 6,500

ARFF fire suppressant chemical 14,000

Total supplies ‐ speciality 20,500$

COMMODITIES

66

Marketing Department Summary The Marketing Department is responsible for ensuring the consistency of messaging to consumers and businesses regarding RFD’s high-value, low cost, hassle-free experience. This message is used to improve RFD’s standing in the markets that it operates. The markets that are targeted by RFD for continued development include air service for scheduled airlines, air charters, and air cargo. The Marketing Objectives are outlined below. Department initiatives to move the goals are listed below. Also noted are prior year results.



Identify organizational w ide training priorities to improve job skills and know ledge.Create and implement training/ professional development program.Develop collaborative opportunities for promotion, education and recruitment through various businesses and community events. Go Global, Air Show . Ice Sculpting Contest (clean snow ), Cub Scouts, College/High School Interns.









Customer satisfactionSurveys show meet or exceed customer satisfaction.




Goals and Objectives Enhance and grow air service at RFD and to effectively market RFD to the region.

Think creatively and implement unique, yet effective marketing campaigns that consistently engage the community and region.

Perform regular research and analysis of RFD activity and airline performance through surveying, polling, and industry statistical analysis.

Explore and create new partnerships and/or trade opportunities that supplement our marketing plan to produce results and save costs for the airport.

Increase social media activity and connections by 25%

Participate in and support community events

Update and maintain a user friendly Airport and AirFest website

Prior Year Results

Marketing results continue to show growth in usage of social media: MilesAhead, Facebook, Twitter and YouTube.

67

Marketing Department Summary (continued)

5% growth in MilesAhead during our two week FlyRFD.com Suitcase Hunt encouraging use of FlyRFD.com.

Marketing was limited to surrounding communities to raise awareness.

Hosted a Toys for Tots Santa flight for underpriviledged children.

Produced Popular Annual Report.

68

Marketing Department BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET


PERSONNEL SERVICES

5400 Insurance 19,657$ 14,419$ 10,887$ 7,625$ ‐$ ‐$ ‐$ 5450 Overtime 194 ‐ ‐ ‐ ‐ ‐ ‐ 5500 Payroll taxes 6,757 4,782 3,410 3,550 ‐ ‐ ‐ 5560 Pension contribution 9,316 7,644 6,506 3,575 ‐ ‐ ‐ 5600 Salaries/wages 100,052 69,632 54,228 40,928 ‐ ‐ ‐ 5800 Workers compensation insurance 656 36 89 100 ‐ ‐ ‐ TOTAL PERSONNEL SERVICES 136,830 96,512 75,120 55,779 ‐ ‐ ‐ ‐$ 0.00%


6020 Advertising ‐ ‐ 6021 Ad‐Television 103,736 42,183 69,289 39,794 60,000 27,444 45,000 6022 Ad‐Radio 101,289 24,582 95,778 48,406 60,000 60,631 72,000 6023 Ad‐Billboards 25,124 6,508 ‐ 130 30,000 153 ‐ 6024 Ad‐Direct 11,899 1,611 ‐ ‐ 10,000 ‐ ‐ 6025 Ad‐Promotions/sponsorships/events 8,246 72,218 33,873 46,745 45,000 22,465 35,000 6026 Ad‐Print 227,144 98,874 66,007 22,024 35,000 26,413 37,000 6027 Ad‐Internet/web ‐ 55,673 31,680 1,000 25,000 29,296 29,500 6120 Charter program 5,310 ‐ ‐ ‐ ‐ ‐ ‐ 6121 MilesAhead program 86,676 25,769 9,248 50 ‐ ‐ ‐ 6140 Conferences & meetings 117 2,627 ‐ ‐ ‐ 628 ‐ 6145 Air service start up ‐ ‐ 1,675 267 ‐ ‐ ‐ 6150 Revenue guarantee 21,750 755,910 ‐ ‐ ‐ ‐ ‐ 6160 Consulting services 61,461 125,846 99,992 81,492 108,000 76,482 93,000 6510 Medical exams ‐ 45 ‐ ‐ ‐ ‐ ‐ 6540 Membership dues 295 520 280 ‐ ‐ ‐ ‐ 6600 Other 70 109 98 ‐ ‐ ‐ ‐ 6700 Postage 160 ‐ 1,631 ‐ ‐ ‐ ‐ 6730 Printing 5,459 6,505 9,158 12,344 13,250 1,338 11,250 6750 Telephone ‐ ‐ ‐ ‐ ‐ ‐ 6751 Telephone‐cellular 1,505 1,458 ‐ ‐ ‐ ‐ ‐ 6752 Telephone‐local ‐ 2,288 719 228 ‐ ‐ ‐ 6753 Telephone‐long distance 156 102 446 622 ‐ ‐ ‐ 6800 Travel & transportation 45 1,243 113 332 ‐ 864 ‐ TOTAL CONTRACTUAL SERVICES 660,443 1,224,070 419,988 253,433 386,250 245,714 322,750 (63,500)$ ‐16.44%

COMMODITIES

7140 Conferences & meetings 73 422 4,743 360 6,000 ‐ 4,500 7200 Equipment 2,357 441 2,578 ‐ ‐ ‐ ‐ 7380 Other ‐ 110 39 30 ‐ ‐ ‐ 7600 Subscriptions 1,845 231 188 282 ‐ 131 ‐ 7750 Supplies‐office 60 14 32 ‐ ‐ ‐ ‐ 7796 Supplies‐promotional 6,288 12,074 8,357 9,860 9,000 15,319 10,000 TOTAL COMMODITIES 10,623 13,292 15,938 10,532 15,000 15,451 14,500 (500)$ ‐3.33%

DEPARTMENT TOTAL 807,896$ 1,333,875$ 511,046$ 319,744$ 401,250$ 261,164$ 337,250$ (64,000)$ ‐15.95%

CODE/LINE ITEM, Department 07$Chg/FY15 Budget %Chg/FY15 Budget

69

Marketing Budget Justifications


Advertising

6021 Television 45,000$

6022 Radio 72,000$

6025 Promotions/Sponsorships/Events 35,000$

6026 Print 37,000$

6027 Internet/Web 29,500$


Ad design and production 12,500

Design and development ‐ annual report 3,500

Website update & production 1,000

Planning 2,500

Email blasting 7,000

Media Relations 60,000

Photography and video services 6,500


6730 Printing

Banners 2,250

Invitations/cards 1,000

RFD brochure reprint 2,500

Cargo promotional materials 1,500

Signage 1,500

Rack cards 1,500

Other 1,000


COMMODITIES


In‐house luncheon meetings 1,000

Special events(not including Airfest) 3,500


7796 Supplies‐promotional

Promotional items endorsing airport awareness and customer service.

Shirts, hats, pens, coasters, lanyards, coloring books, etc 10,000

Total supplies‐promotional 10,000$

Advertising associated with airline, charter and/or cargo service

70

Terminal Services Department Summary

The Terminal Services Department is responsible for the customer from the parking lot to the jetway. It is estimated that approximately 275,000 people will utilize the terminal in the next year. This not only increases the maintenance costs, but also the personnel cost associated with an exceptional traveling experience. Following are the objectives aligned with our Terminal Services. Department initiatives to move the goals are listed below. Also noted are prior year results.

RevenuesGrow th in diversif ied revenue sources.

Greater than 80% of revenues from sources other than UPS.

Monitor annual report, schedule of major revenue sources.



Identify organizational w ide training priorities to improve job skills and know ledge.Create and implement training/ professional development program.Develop collaborative opportunities for promotion, education and recruitment through various businesses and community events. Go Global, Air Show . Ice Sculpting Contest (clean snow ), Cub Scouts, College/High School Interns.













Energy/Fuel Savings 3% reduction in energy usage per year.

Utilization and expansion of conservation and alternative energy opportunities.



Customer satisfactionSurveys show meet or exceed customer satisfaction.

Goals and Objectives To provide safe and efficient facilities for the tenants and to include the terminals used by citizens and the traveling public within our region. Quality service to our airport customers will be at the top of our plan. Maintain and develop the airport, in an environmentally sound manner, as a vital part of the local, state, and national transportation network. To assist and administer all aspects of the airport efficiently and to be in compliance with all local, state and federal laws and policies regarding the airport and the surrounding area.

Provide a quality Airport Food and Beverage concessionaire willing to adapt to our needs as we grow and expand.

Maintain service reliability, on-time services and repairs as functionally needed.

71

Terminal Services Department Summary (continued)

Enhance safety and service quality.

Be proactive with ideas and concepts for the creative re-use of the terminal building components that may become obsolete or redundant due to industry or technological changes throughout the renovation/expansion period.

Promote consistency during the renovation/expansion plans.

Sustain a viable part on the terminal expansion team.

Continued efforts to investigate new revenue opportunities for the terminal, i.e. advertising and local region company awareness representation.

Prior Year Results

Upgraded our passenger experience with an enhanced food and beverage conssessionaire to include a lounge.

Added entertainment features at gate areas for passengers awaiting departure.

72

Terminal Services Department BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET


5400 Insurance 50,641$ 50,718$ 23,686$ 29,722$ 38,050$ 30,719$ 31,179$

5450 Overtime 19,654 14,127 18,181 21,060 12,365 21,003 10,789

5451 Double time 16,214 11,646 9,090 12,182 11,658 11,796 7,291

5500 Payroll taxes 18,939 15,457 9,738 11,630 16,114 11,185 12,342

5560 Pension contribution 27,304 22,045 15,458 17,462 21,622 18,787 14,735

5600 Salaries/wages 225,837 192,432 105,199 136,397 154,378 117,260 144,558

5605 Outside labor ‐ ‐ ‐ ‐ ‐ 10,769 ‐

5750 Training 2,120 ‐ ‐ 175 ‐ ‐ ‐

5800 Workers compensation insurance 23,722 16,804 10,224 10,734 13,673 12,972 11,943

5900 Uniforms 1,144 957 1,589 1,363 1,775 1,287 1,331

5901 Uniforms‐lost,damaged,replaced 65 49 ‐ 33 421 ‐ 422

5903 Uniforms‐other 656 676 575 404 600 415 600

TOTAL PERSONNEL SERVICES 386,294 324,910 193,739 241,162 270,656 236,192 235,191 (35,465)$ ‐13.10%

6100 Building repair 16,774 18,504 37,621 16,677 20,000 11,511 25,000

6140 Conferences & meetings 75 32 ‐ ‐ ‐ ‐ ‐

6201 Energy‐electric 176,337 144,487 101,207 94,786 110,000 103,531 99,000

6202 Energy‐natural gas 19,762 13,605 16,064 22,384 17,500 32,357 24,000

6320 Equipment maintenance ‐ ‐ ‐ 402 ‐ ‐ ‐

6321 Equip maint‐repairs/services 52,561 32,902 42,096 32,931 66,785 33,292 61,285

6322 Equip maint‐service contracts 41,068 40,027 44,850 48,253 64,456 64,564 62,645

6350 Equipment rental 4,022 1,145 6,036 10,666 12,500 13,344 20,900

6410 Landscaping 5,181 5,170 15,552 5,830 12,500 6,223 12,000

6480 Licenses, titles & inspections ‐ ‐ ‐ 895 ‐ 933 3,850

6510 Medical exams 5 791 72 187 500 245 500

6600 Other 101 504 35 109 1,580 ‐ 1,580

6751 Telephone‐cellular 3,610 3,079 2,049 959 1,800 938 900

6752 Telephone‐local 11,131 16,343 11,794 12,712 14,500 12,793 17,400

6753 Telephone‐long distance 21 ‐ ‐ 5 ‐ 4 ‐

6800 Travel & transportation 1,555 196 153 ‐ ‐ ‐ ‐

6800 Customer care/customer service 117 1,364 ‐ ‐ ‐ ‐ ‐

6850 Utilities 4,777 5,293 5,648 7,967 5,800 7,931 9,100

6950 Waste removal 103,625 84,072 43,032 30,296 51,000 36,018 50,450

TOTAL CONTRACTUAL SERVICES 440,721 367,515 326,209 285,060 378,921 323,683 388,610 9,689$ 2.56%

7100 Building repair 37,194 14,434 17,715 5,690 18,000 30,242 21,000

7140 Conferences & meetings 830 923 1,047 1,098 2,400 1,627 2,400

7200 Equipment 11,543 13,458 5,286 10,177 19,600 14,381 8,700

7300 Landscaping 10,022 12,685 1,981 1,676 3,500 1,263 3,500

7380 Other 2,174 1,076 1,256 ‐ 2,000 88 2,000

7540 Signage 748 3,666 131 307 3,000 ‐ 1,500

7580 Software 70 ‐ ‐ ‐ ‐ ‐ ‐

7600 Subscriptions 10,179 9,226 842 1,156 1,355 2,654 2,535

7660 Supplies‐janitorial 7,841 18,818 16,437 20,355 17,400 17,226 17,900

7750 Supplies‐office 2,160 3,203 441 980 ‐ 1,098 500

7780 Supplies‐other 6,164 498 18 1,074 9,000 1,287 ‐

TOTAL COMMODITIES 88,925 77,988 45,154 42,512 76,255 69,867 60,035 (16,220)$ ‐21.27%

DEPARTMENT TOTAL 915,941$ 770,414$ 565,101$ 568,735$ 725,832$ 629,742$ 683,836$ (41,996)$ ‐5.79%

%Chg/FY15 BudgetCODE/LINE ITEM, Department 08

PERSONNEL SERVICES


COMMODITIES

$Chg/FY15 Budget

73

Terminal Services Budget Justifications

PERSONNEL SERVICES

5400 Insurance


Employee = $6172.50/$4117.00

Employee + Spouse = $18,893.76/$17,910.80


Family = $15,258.06

Dental insurance


Employee = $389.88

Family = $977.76

Life insurance

Health 28,622

Dental 1,724

Life 834 Total employee insurance 31,179$

5450 Overtime


5451 Double time


5500 Payroll taxes







5600 Salaries

Contracted labor 20,000

3 full time employees 124,558

Total salaries 144,558$




5903 Uniforms ‐ protective clothing 600$


below.

Life and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life at

$.23/$1000 and AD&D at $.05/$1000.

74




Repair and painting in terminal 25,000$

6201 Energy‐electric ‐ terminal 99,000$

6202 Energy‐natural gas ‐ terminal 24,000$

6321 Equip maint‐repairs/services

HVAC 12,500

Installation/Replacement of field components w/HVAC 14,000

Jet Bridges 4,500

Air Duct Cleaning 4,635

Refurbish luggage carts 3,500

Door repair 18,200

Grease trap cleaning 2,000

Other 1,950 Total equipment maintenance ‐ repairs/service 61,285$


Escalator 11,940

Elevator 4,000

Jetbridge preventive 7,800

Fires safety 5,360

Water softener service 3,700

Common use system 19,000

Security system 3,800

Pest control 1,260

Telephone system 1,050

Automatic entrance doors 1,000

Sanitizer service 3,000

Wheel chair maintenance 235

Other 500



High lift/boom 10,000

Wheel chair rental 8,900

Other 2,000


6410 Landscaping

General landscaping needs 8,500

Terminal fertilizing and broadleaf control 3,500

Total landscaping 12,000$

6480 Licenses, titles, & inspections

Liquor license renewal 2,500

State Fire Marshall, Elevator, Escalator, Boilers 1,350



6600 Other ‐ Contractual services not itemized in other accounts. 1,580$

75


6751 Telephone‐cellular 900$


IP telephone and internet service 15,000

Back up service 2,400

Total telephone ‐ local 17,400$

6850 Utilities

Water 3,500

Sewer 5,600


6950 Waste removal

Debris and extra dumpster pick‐ups 4,450

International rubbish removal 45,000

Other ‐ line cleaning 1,000

Total waste removal 50,450$

7100 Building repairMaterials used in connection with the maintenance of terminal building areas not covered by tenant

leases. 21,000$


Water rental and delivery 900

Miscellaneous 1,500


7200 Equipment

Power tools and equipment 1,000

Hand tools, snow shovels, etc 500

Snow blade for bobcat 2,000

Scaffold tower 1,700

Platform truck 500

Other 3,000


7300 LandscapingSupplies associated with turf maintenance of terminal area. 3,500$

7380 Other ‐ Costs of commodities not itemized in other accounts. 2,000$

7540 SignageRental car return reflective signage 1,500$

7600 Subscriptions

TV Service‐ dish 2,100

Radio service ‐ satelite 180

Internet subscription‐ Winn Co. 255


COMMODITIES

76



Consumable products 11,000

Cleaners 3,100

Strippers/waxes 600

Mop heads/brushes/brooms/bags/etc 3,200


7750 Supplies‐office 500$

77

AirFest Department Summary The AirFest Department is responsible for the overall development and implementation of one of the Midwest’s largest events. AirFest is considered a promotional event for the airport, with the added benefit of supporting the community’s quality of life with another family-oriented event for the region. The department oversees and implements the operational, promotional, and financial aspects of Rockford AirFest. Although a component of the greater Airport marketing mix, it was necessary to separately identify the related costs of the event from the Air Service Marketing. Following is the objective for the AirFest. Department initiatives to move the goals are listed below.

Goals and Objectives Provide a high quality, high value family-friendly event for the regional community and a marketing opportunity to promote RFD in the most cost effective manner.

Produce an event that resonates with the region and allows for patrons to experience RFD and results in a breakeven or better financial position.

Operate an event that is safe for the performers and patrons.

Establish relationships with local and regional businesses that will benefit RFD.

Raise awareness in the airshow community to facilitate easier attraction of both military and civilian performers for future shows (received high marks by recruiters and performers).

Continue to improve the traffic flow and parking by eliminating bottlenecks and decreasing the slowdowns (no delays during show).

Creating award-winning marketing communication collateral and advertising (two more awards in December at International Council Air Shows (ICAS) conference).

Continue to grow sponsorship by 25% each year.

Attract more national sponsorships.

Have all fixed costs paid prior to gate opening.

Increase knowledge of consumer through survey engagement.

Develop collaborative opportunities for promotion, education and recruitment through various businesses and community events. Go Global, Air Show . Ice Sculpting Contest (clean snow ), Cub Scouts, College/High School Interns.

INITIATIVES




OBJECTIVES MEASURES TARGETS

78

AirFest Department BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET


5400 Insurance 12,227$ 12,100$ 12,550$ ‐$ 7,602$ 8,399$ 8,287$

5450 Overtime 12,663 27,397 29,331 ‐ 16,034 16,696 18,801

5451 Double time 5,104 12,000 12,051 ‐ 10,637 11,313 11,727

5500 Payroll taxes 7,745 7,832 7,941 562 8,587 6,878 7,763

5560 Pension contribution 7,901 7,801 8,037 ‐ 8,702 9,014 7,991

5700 Salaries/wages 93,254 95,823 92,125 9,200 71,204 54,399 59,911

5800 Workers compensation insurance 3,674 2,000 2,417 ‐ 2,276 2,201 2,547

TOTAL PERSONNEL SERVICES 142,569 164,953 164,451 9,762 125,042 108,900 117,027 (8,015)$ ‐6.41%

6021 Ad‐Television 10,900 7,188 ‐ ‐ ‐ ‐ ‐

6022 Ad‐Radio 8,243 12,467 ‐ ‐ ‐ ‐ ‐

6023 Ad‐Billboards ‐ 1,000 ‐ ‐ ‐ ‐ ‐

6025 Ad‐Promotions 500 473 ‐ ‐ ‐ ‐ ‐

6026 Ad‐Print 2,773 10,883 ‐ ‐ ‐ ‐ ‐

6140 Conferences & meetings 510 12 2,194 ‐ ‐ ‐ ‐

6160 Consulting services 13,033 10,290 23 ‐ ‐ ‐ ‐

6165 Airshow contractual 207,437 207,763 237,376 ‐ 219,500 212,290 264,700

6170 Airshow lodging 41,144 48,447 60,502 ‐ 39,000 25,544 42,000

6175 Airshow rental services 55,121 51,856 57,539 ‐ 51,830 53,982 65,600

6185 Airshow food and beverages 60,170 55,885 61,067 ‐ 61,150 58,894 60,100

6190 Airshow transportation 49,074 41,031 47,503 ‐ 43,450 39,152 40,000

6300 Engineering services 10,337 6,661 2,470 ‐ 2,500 1,435 1,500

6322 Equip maint‐service contracts 4,200 660 ‐ ‐ ‐ ‐ ‐

6350 Equipment rental 8,805 4,644 14,839 ‐ 4,800 3,359 6,200

6400 Insurance 9,057 9,057 10,156 ‐ 12,000 10,226 11,000

6480 Licenses, titles & inspections 365 440 415 ‐ 1,175 1,167 1,175

6600 Other 8,328 7,684 4,330 ‐ 500 577 500

6700 Postage 11 ‐ ‐ ‐ ‐ ‐ ‐

6730 Printing 34,810 26,259 26,865 ‐ 11,000 6,010 10,000

6751 Telephone‐cellular 2,014 1,588 2,858 ‐ 2,800 981 600

6752 Telephone‐local 1,038 357 1,390 ‐ 1,000 ‐ ‐

6800 Travel & transportation 1,658 713 2,446 ‐ 200 11 200

6950 Waste removal 145 ‐ ‐ ‐ ‐ ‐ ‐

TOTAL CONTRACTUAL SERVICES 529,672 505,358 532,298 ‐ 450,905 413,628 503,575 52,670$ 11.68%

7271 Fuel‐diesel 148 194 ‐ ‐ ‐ ‐ ‐

7272 Fuel‐unleaded 361 1,329 ‐ ‐ ‐ ‐ ‐

7273 Fuel‐other 10,083 36,563 39,708 ‐ 39,700 44,141 42,000

7300 Landscaping 85 110 1,216 ‐ 1,000 231 500

7540 Signage 9,480 5,554 4,081 ‐ 4,000 2,731 4,000

7600 Subscriptions 188 37 500 115 125

7660 Supplies‐janitorial 1,799 3,330 3,708 ‐ 3,500 986 1,000

7750 Supplies‐office 1,637 1,374 418 ‐ 500 1,584 1,500

7780 Supplies‐other 4,418 6,577 3,767 ‐ 2,700 5,596 6,200

7782 Supplies‐hardware 1,691 1,377 1,906 ‐ 1,700 1,082 1,000

7796 Supplies‐promotional ‐ Airshow 29,442 12,279 15,618 ‐ 24,600 19,829 21,800

7902 Maint‐equipment ‐ 125 ‐ ‐ ‐ ‐ ‐

TOTAL COMMODITIES 59,144 68,813 70,610 37 78,200 76,295 78,125 (75)$ ‐0.10%

DEPARTMENT TOTAL 731,385$ 739,124$ 767,358$ 9,799$ 654,147$ 598,823$ 698,727$ 44,580$ 6.82%

%Chg/FY15


PERSONNEL SERVICES


COMMODITIES

$Chg/FY15

Budget

79

AirFest Budget Justifications

PERSONNEL SERVICES

Dept 04 ‐ 2.0%

Dept 05 ‐ 3.2%

Dept 06 ‐ 2.6%

Dept 08 ‐ 3.0%

Dept 11 ‐ 1.9%

5400 Insurance 8,287$

5450 Overtime


5451 Double time


5500 Payroll taxes



State unemployment ‐ 3.75% of the first $12,960 851




5600 Salaries and wages 59,911

Allocated staff time and 1 part‐time temporary staff 59,911$



6165 Airshow contractual

AirSho Inc ‐ Rudy Malnati 51,000

Performers fee 129,500

AirSho Inc ‐ Support team 25,000

Contracted security police 20,000

Not‐for Profit Support for parking ‐ donation for 700+ hours 6,000

ARFF 3,700

Run the Runway Donations 20,000

Air Force Volunteers 1,000

Contract EMS 8,500

Total airshow contractual 264,700$

6170 Airshow lodging

Performers 42,000

Total airshow lodging 42,000$

6175 Airshow rental servicesPortable toilets 10,600

Fencing 8,000

Barricades 1,000

Tents/weights/tables/chairs 46,000

Total airshow rental services 65,600$

Personnel services associated with AirFest are based on a percentage for all other departments as outlined below with the

addition of funds to support temporary administrative help.

80

AirFest Budget Justifications6185 Airshow food and beverages

Sponsor catering 3,700

Captains club 12,000

Aviators club 9,000

Volunteers 8,700

Host/Staff/VIP 15,000

Other 1,000

Performers 7,700

Ice 3,000

Total airshow food and beverages 60,100$

6190 Airshow transportation

Cars/vans 30,000

Golf carts 9,000

Airfare 1,000

Total airshow transportation 40,000$

6300 Engineering services

Layout drawings 1,500

Total engineering services 1,500$


Radios 1,200

Forklift rentals/generators 2,600

Spongebob costume 1,200

Other 1,200


6400 Insurance

Airshow 11,000

Total insurance 11,000$

6480 Licenses, titles & inspections

Music licensing fee 760

City of Rockford event application 390

Illinois liquor control license 25

Total licenses, titles & inspections 1,175$

6600 Other ‐ Contractual services not itemized in other accounts. 500$

6730 Printing

Admission tickets 2,500

Copy machines usage 1,500

Volunteer and staff credentials 1,000

Banners, flyers and posters 5,000


6751 Telephone‐cellular 600$

6752 Telephone‐local ‐$

6800 Travel & transportation (airfare/hotel/per diem)

Staff conferences and training

Mileage 200

Total travel & transportation 200$

81

AirFest Budget JustificationsCOMMODITIES

7273 Fuel‐other

Pyro fuel 4,800

Propane ‐ forklifts 400

Aircraft fuel 26,000

Smoke oil 10,800

Total fuel ‐ other 42,000$

7300 LandscapingMulch and supplies for grounds 500$

7540 Signage 4,000$

7600 Subscriptions



Various supplies 1,000



Misc supplies 1,500

Total supplies‐office 1,500$

7780 Supplies ‐ other

Table covers 1,200

Other 5,000

Total supplies‐other 6,200$

7782 Supplies‐hardware (expendable supplies) 1,000$


Volunteer T‐shirts 3,200

Staff and commissioner's shirts 1,600

Run the runway shirts, medals, bibs 12,000

Gifts for volunteers souvenir sale merchandise 5,000

Total supplies ‐ promotional 21,800$

82

Business Development Department Summary Business and Cargo development are continuing to move forward with more awareness in the global community, which has led to test flights. As of FY2016, the Business Development department also has responsibility for Air Service Development. We will continue to market to the airlines, but add more specific targeted marketing towards the Freight Forwarders both locally, as well as abroad. This process will be a push-pull process since each group can affect the overall decision to move. Because of the importance of meeting face-to-face, staff will be traveling a considerable amount this coming year.

RevenuesGrow th in diversif ied revenue sources.

Greater than 80% of revenues from sources other than UPS.

Monitor annual report, schedule of major revenue sources.

Operations Ranking: Top 20Increase sales calls, public relations and global participation at tradeshow s.

Enplaned/Deplaned cargo Operations increase: 20% Develop f inancial incentives to grow , and diversify domestic and international cargo activity.

Landed aircraft w eight Enplanements/Deplanements increase: 27%

Airline diversif ication Landed w eight increase: 27%

Airlines/International New airline operators: 3

International landed w eight: 15% increase

Expand cargo service to increase economic impact and viability.


Goals and Objectives Continue to develop and grow awareness of the value of using the airport for international cargo activity and any other support businesses to enhance the value.

Identify appropriate locations for industrial, commercial and business development opportunities that advance long-term economic viability for the Airport and the local communities and are consistent with the future land use planning and development strategy.

Maintain an inventory of vacant buildings/hangars space and land available for industrial and commercial development as well as the site-specific land description and utilities attributes of all Airport-owned properties and or buildings/hangars.

Provide opportunities for Airport-related commercial development, such as hotels, retail, fast food and other commercial development that enhance economic development in the region and are compatible with Airport operations and maintenance.

Promote a development strategy to attract cargo operations and storage by marketing current facilities plans for cargo operations.

Develop an internet marketing tool for vacant buildings, hangars and of all Airport-owned properties.

83

Business Development Department Budget



PERSONNEL SERVICES

5400 Insurance 11,964$ 14,672$ 11,457$ 18,062$ 33,794$ 5500 Payroll taxes 8,663 8,816 9,277 8,886 19,416 5560 Pension contribution 13,956 15,331 14,700 14,523 24,711 5600 Salaries/wages 121,010 125,199 121,291 118,785 239,219 5750 Training 5,000 5800 Workers compensation insurance 341 356 364 370 1,196

TOTAL PERSONNEL SERVICES 155,934 164,374 157,089 160,627 323,336 166,247 105.83%


6140 Conferences & meetings 12,489 13,853 9,000 14,196 11,190 6150 Revenue guarantee 35,000 6160 Consulting services ‐ 34,000 6540 Membership dues 3,508 4,554 4,000 3,521 4,050 6600 Other ‐ 15 ‐ ‐ ‐ 6670 Permits & testing ‐ 1,021 ‐ ‐ ‐ 6700 Postage

6730 Printing 1,038

6750 Telephone

6751 Telephone‐cellular 1,267 1,217 1,260 1,228 2,280 6752 Telephone‐local 447 617 450 604 700 6800 Travel & transportation 25,224 14,276 21,100 19,834 30,790

TOTAL CONTRACTUAL SERVICES 42,937 35,552 35,810 40,421 118,010 82,200 229.54%

COMMODITIES

7140 Conferences & meetings 2,562 112 4,000 4,042 11,500 7200 Equipment ‐ 447 1,650 1,548 1,990 7380 Other

7600 Subscriptions 1,200 1,158 335 68 4,280 7750 Supplies‐office

7796 Supplies‐promotional 2,400 ‐ 4,000 468 4,000 TOTAL COMMODITIES 6,161 1,718 9,985 6,127 21,770 11,785 118.03%

DEPARTMENT TOTAL 205,032$ 201,644$ 202,884$ 207,174$ 463,116$ 260,232 128.27%

$Chg/FY15

Budget

%Chg/FY15


84

Air Service Development Department Budget



PERSONNEL SERVICES

5400 Insurance 30,294$ 26,885$ 21,066$ 14,479$ ‐$ 5500 Payroll taxes 11,626 8,922 9,793 5,534 ‐ 5560 Pension contribution 14,394 13,451 13,562 8,851 ‐ 5600 Salaries/wages 162,513 123,089 111,897 64,531 ‐ 5800 Workers compensation insurance 4,508 256 336 202 ‐

TOTAL PERSONNEL SERVICES 223,335 172,603 156,654 93,596 ‐ (156,654) ‐100.00%


6140 Conferences & meetings 7,076 12,493 9,725 4,226 ‐ 6150 Revenue guarantee 168,950 104,770 35,000 25,000 ‐ 6160 Consulting services 7,500 27,565 25,000 65,800 ‐ 6510 Medical exams 5,214 590 1,200 883 ‐ 6540 Membership dues 310 275 310 ‐ ‐ 6600 Other ‐ 30 ‐ ‐ ‐ 6751 Telephone‐cellular 2,132 1,112 1,091 1,339 ‐ 6752 Telephone‐local 1,566 1,209 1,680 1,161 ‐ 6800 Travel & transportation 12,681 ‐ 16,450 1,214 ‐ 6806 Customer care/customer service 1,299 378 2,000 402 ‐

TOTAL CONTRACTUAL SERVICES 206,728 148,421 92,456 100,025 ‐ (92,456) ‐100.00%

COMMODITIES

7140 Conferences & meetings 5,618 4,047 8,500 1,685 ‐ 7200 Equipment 1,369 1,810 1,990 1,097 ‐ 7600 Subscriptions 1,379 3,380 4,595 3,181 ‐ 7540 Signage 4,186 ‐ ‐ ‐ ‐ 7750 Supplies‐office 1,315 740 ‐ 836 ‐ 7780 Supplies‐other 3,676 1,506 5,500 ‐ ‐

TOTAL COMMODITIES 17,543 11,483 20,585 6,799 ‐ (20,585) ‐100.00%

DEPARTMENT TOTAL 447,606$ 332,508$ 269,695$ 200,420$ ‐$ (269,695) ‐100.00%

$Chg/FY14

Budget

%Chg/FY14


85

Business Development Budget Justifications

PERSONNEL SERVICES

5400 Insurance


Employee = $6172.50/$4117.00

Employee + Spouse = $18,893.76/$17,910.80


Family = $15,258.06

Dental insurance


Employee = $389.88

Family = $977.76

Life insurance

Health 30,579

Dental 1,724


5500 Payroll Taxes







5600 Salaries

Includes 3 full time employee 239,219$

5750 Training

Advanced degree 5,000

Total 5,000$




CNS Partnership conference 1,500

Air Cargo 2016 800

Air Cargo Americas 400

Air Cargo Europe 500

Routes America (2 people) 3,310

Allegiant Planning Conference 350

Sixel Air Service Conference ‐ November (2 people) 1,790

Sixel Air Service Conference ‐ April (2 people) 1,790

NBAA Scheduler/Dispatcher Conference (2 people) 750



below.


and AD&D at $.05/$1000.

86


6150 Revenue guarantee

Apple ‐ Puerta Vallarta 35,000$

Total revenue guarantee 35,000$


Air Service research/planning 8,000

Sixel airline research/analysis 24,000

Other 2,000



HKBA 50

TIACA, IACAC,CNS, NBAA, IATA 4,000



6752 Telephone‐local/h‐s internet 700$


CNS Partnership conference ‐ 3 days 1,530

Air Cargo 2016 ‐ 3 days 1,530

Air Cargo Americas ‐ 3 days 1,530

TIACA ‐ 3 days 1,530

Air Cargo Europe ‐ 5 days 4,900

Routes America (2 people) ‐ 3 days 3,060

Allegiant Planning Conference (2 people) ‐ 3 days 3,060

Sixel Air Service Conference ‐ November (2 people) ‐ 3 days 3,060

Sixel Air Service Conference ‐ April (2 people) ‐ 3 days 3,060

NBAA Scheduler/Dispatcher Conference (1 people) ‐ 3 days 1,530

Other 3,500

Mileage 2,500


COMMODITIES


Travel agent event ‐ Apple 8,000

MAST exhibit agent event 1,000

Freight forwarders meeting 2,000

Other 500


7200 Equipment ‐ computer 1,990$

7600 Subscriptions

Routes exchange website 3,000

Adobe creative cloud 600



Amounts include an estimate of $550/trip airfare, lodging of $185/night and M&I of $75/day for domestic and

$2900/airfare, lodging $300 and M&I of $100/day for international.

87



Promotional items endorsing airport awareness and customer service.

Shirts, hats, pens, coasters, lanyards, coloring books, etc 4,000

Total supplies‐promotional 4,000$

88

Non-Operating Revenues and Expenses Budget

ACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGET

CODE/LINE ITEM FYE11 FYE12 FYE13 FYE14 FYE15 FYE15 FYE16

NON-OPERATING REVENUE

9000 Annexation agreement -$ -$ -$ -$ -$ -$ -$

9100 Interest income 89,321 33,880 19,318 16,183 20,000 5,445 15,000

9200 Taxes-property (operating levy) 3,277,669 3,346,076 3,122,854 3,123,289 3,100,000 2,909,105 2,859,000

9205 Property tax interest (operating levy) - - - - 2,000 - 2,000

9250 Taxes-corporate replacement 582,125 525,140 520,646 595,828 602,222 472,380 601,418

9280 AIP Funds Reimbursement 2,248,144 4,565,843 1,636,679 1,702,871 950,000 1,283,292 705,000

9270 Passenger facility charges 356,332 522,905 474,257 512,191 559,926 420,103 541,723

9260 Funds from auctioned equipment - - 2,937 20,980 75,000 69,322 70,000

9300 Other Credits 71,400 145,279 - 115,907 - 1,723,656 -

TOTAL REVENUE 6,624,990 9,139,123 5,776,691 6,087,249 5,309,148 6,883,304 4,794,141

NON-OPERATING EXPENSES

9500 Interest expense 222,750 144,047 60,643 90,201 72,000 95,495 115,032

TOTAL EXPENSES 222,750 144,047 60,643 90,201 72,000 95,495 115,032

NET TOTAL 6,402,240$ 8,995,076$ 5,716,048$ 5,997,048$ 5,237,148$ 6,787,808$ 4,679,109$

89

Non‐Operating Revenues and Expenses Budget Justifications

NON‐OPERATING REVENUE

9100 Interest incomeInterest earned on all bank deposits and investments. 15,000$

9200 Taxes‐property (operating levy)FYE15 Tax Levy Ordinance 3,100,000$

9205 Property tax interest (operating levy)Interest received on the operating tax levy. 2,000$

9250 Taxes‐corporate replacement

601,418$

9280 AIP Reimbursement FundsAmounts reimbursed to the airport for previous projects. 705,000$

NON‐OPERATING EXPENSES

9500 Interest expense

Total interest expense 72,000$

OTHER CAPITAL CONTRIBUTIONS

9270 Passenger facility charges

Passenger facility charge ($4.5 less expenses)

526,752$

9260 Funds from auctioned equipment 70,000$

Personal Property Replacement Tax (PPRT) revenue received from the Illinois Department of Revenue

(estimate).

90

Capital Improvement Program Summary

The Capital Improvement Program (CIP) is a five to ten year program that provides for critical improvements and asset preservation. The program includes projects that address federal security requirements, airfield safety, enhanced revenue potential, rolling equipment replacement, asset preservation and completion of the newly updated Master Plan.

Airside Projects $ 70,000

Landside Projects 275,000

Terminal Projects 700,000

Administration Projects 150,000

Maintenance Projects 16,500

Total Capital Improvements $1,211,500

Funding sources for the projects and replacements include Airport Improvement Program (AIP) grants, Passenger Facility Charges (PFC), allocated reserve funds, the balance of the capital accounts, operating revenues and short term borrowings where appropriate. Projected FYE16 CIP capital expenditures are as follows and detail of individual items to follow. Airside Projects Airside projects include improvements for runways, taxiways, aprons, and buildings inside the airfield fence. Ramp Repairs In continuation of the pavement maintenance program. These areas include but are not limited to the FIS, Terminal, Main ramp, and South Cargo areas. This work will fix the spalling of the concrete and also remove and replace the joint material that is creating FOD. With the increase in passenger flights, and usage of these ramps, repairs are needed to allow safe operation of all aircraft operating in or transitioning through the area.

Total Project Cost $70,000

Operating Impact – reduction of unplanned rehab N/A Landside Projects Projects relate to any area outside of the airfield except for the terminal. Falcon Road & Airport Drive Improvement Total project investment is $3 million however we will fund a portion of the project annually. This is a joint project with the City of Rockford and the total cost of the project is approximately $9.5 million.


Operating Impact 20,000

91

Capital Improvement Program Summary (continued) Terminal Projects Projects related to any areas from terminal parking lots to the jet bridges and everything in between. Terminal Facility Capacity Expansion - Design and Phase I Potential FAA AIP Project - As passenger service has grown the capacity of the Terminal building is stretching the limits of the facility. During our peak travel times lines are long and create safety issues and reduce our hassle free environment. These modifications will allow us to process more passengers in a timely manner.


Operating Impact N/A Administration Projects Projects related to general information technology on administrative areas. Asset Management System Implementation Implementation of an asset management system. This would be a tool for both the Maintenance and Operations Staff to work with the Part 139 inspection requirements. This is the second phase of a four phase project.


Operating Impact N/A Maintenance Projects Maintenance projects for the various equipment and maintenance needs at the airport. Retention Facility Aerators Replacement of 20 year old aerators.

Total Cost $16,500

Operating Impact Reduced repair expenses

92

Exhibit 1

Tentative Budget and Appropriation Ordinance

GREATER ROCKFORD AIRPORT AUTHORITY RESOLUTION NO. 15-06

WHEREAS, the Greater Rockford Airport Authority (the "Authority") is a municipal corporation

located in Winnebago County, Illinois, duly created, organized, and existing under an Act of the General Assembly of the State of Illinois entitled the "Airport Authority's Act," as amended, 70 ILCS 5, et. seq., and having the powers, objects, and purposes provided under said Act;

WHEREAS, in accordance with 50 ILCS 330/3, the Authority is required to adopt a Tentative Budget and Appropriation Ordinance for the fiscal year, beginning May 1, 2015 and ending April 30, 2016;

WHEREAS, in accordance with 50 ILCS 330/3, the Authority is required to place on file at the Administrative offices of the Authority for public inspection a copy of the Tentative Budget and Appropriation Ordinance; and

WHEREAS, in accordance with 50 ILCS 330/3, 35 ILCS 200/18-50, and 35 ILCS 200/23-35, the Authority is required to call for a public hearing on the Tentative Budget and Appropriation Ordinance, and publish notice of said public hearing.

NOW, THEREFORE, be it resolved by the Chairman and the Board of Commissioners at the Authority, Winnebago County, State of Illinois, that:

1. The Authority hereby adopts the Tentative Budget and Appropriation Ordinance for the fiscal year, beginning May 1, 2015 and ending April 30, 2016 a copy of which is on file at the Administrative Offices of the Authority;

2. The Authority hereby directs its staff to place on file at the Administrative Offices of the

Authority for public inspection a copy of the Tentative Budget and Appropriation Ordinance for the fiscal year, beginning May 1, 2015 and ending April 30, 2016 a copy of which shall be placed on file at least thirty (30) days prior to the date set by the Authority for the public hearing;

3. The Authority hereby directs its staff to call for and hold a public hearing on the Tentative

Budget and Appropriation Ordinance on May 22, 2015 at 5:25 p.m. at the Administrative Offices of the Authority;

4. The Authority hereby directs its staff to publish in a newspaper of general circulation

notice of the public hearing on the Tentative Budget and Appropriation Ordinance, provided that said notice shall be published at least thirty (30) days prior to the date set by the Authority for the public hearing.

93

Exhibit 1 (continued)

Tentative Budget and Appropriation Ordinance RESOLUTION NO. 15-06

5. The Authority's staff is hereby authorized and directed to take any additional actions necessary to effectuate the above Resolution in accordance with applicable Illinois statutory law.

Commissioner Derry moved, seconded by Commissioner Dal Santo that Resolution Number 15-06 be adopted.

Vote Vote

Paul Cicero _aye__ Patrick Derry _aye__ Kenneth Copeland _aye__ Tom Myers _aye__ Tom Dal Santo _aye Ray Wetzel _aye__

ADOPTED this 27th day of March, 2015 by the Chairman and the Board of Commissioners of the Greater Rockford Airport Authority, Winnebago County, Illinois.

(Signed February 26, 2015)__________ Ray Wetzel, Secretary

ATTEST: (Signed February 26, 2015)__________ Kenneth Copeland, Treasurer

94

Exhibit 2 Chicago Rockford International Airport (RFD)

Rates and Charges Effective June 1, 2013

Terminal Usage fee (includes use of ramps, jet way, baggage claim & public safety fee)

Signatory and/or scheduled Airlines $65.00 Non-Signatory and/or charter flights $130.00

Ticket Counter/Computer Use fee (per enplanement) $0.20 Passenger Facility Charge (PFC) (per enplanement) $4.50 Ticketing, passenger check-in and airline station services

(excludes below wing) (per seat) $2.25 Landing Fee

Greater than 120,000,000 pounds annual landed weight $1.934 /1000lbs Less than 120,000,000 pounds annual landed weight $1.964 /1000lbs

Landing fees will only apply to revenue producing commercial cargo and passenger air carriers with a minimum weight of 28,000 pounds. Fuel Flowage Fees Class A Permit $1,125.00 Flowage Fee $0.06/gallon Class B Permit $600.00 Flowage Fee $0.08/gallon Class C Permit $375.00 Flowage Fee $0.08/gallon Flowage fee applies to all non-revenue producing aircraft fuelings. Commercial operating permit /per square foot $0.28 Commercial operating permit/Nontenant (base fee) $250.00 Commercial operating permit/Nontenant (additional per badge fee) $250.00 International rubbish fee 4x4 hopper (200 gallons) $410.00

Black cart (60 gallons) $105.00 Gray cart (40 gallons) $85.00 User is ultimately responsible for fines incurred as of the result of use (IEPA, CBP, Dept of Agriculture, etc) Badging Fees

Secure, Sterile & AOA w/SIDA endorsement Original issue badge $100.00 Badge renewal $50.00 1st lost badge with re-issue $250.00 2nd lost badge with re-issue $500.00 3rd lost badge with re-issue $1,000.00

95

Exhibit 2 (continued) Badging Fees

AOA Original issue badge $50.00 Badge renewal $25.00 1st lost badge with re-issue $150.00 2nd lost badge with re-issue $300.00 3rd lost badge with re-issue $600.00

Not returned or lost badges (all types) $250.00 Fingerprint fee (non-badged) $35.00 Fingerprint fee plus required follow up investigation if necessary $55.00/hr

Fines

Security system false alarm $25.00 Security system false alarm requiring an Operations response $75.00 Unauthorized SIDA Entry/Exit (per occurrence) $100.00 Improper use of RFD ID media - (Includes ID media revocation) $150.00 Operation of an out of service vehicle on RFD AOA

Non-movement area (per occurrence) $250.00 Premise key (Lost key -Cost to re-key all locks affected

including labor to disassemble if necessary.) Airfield incursions/TSA violations ( Violator is responsible

for all costs/fines levied to RFD by FAA/TSA) Service Fees

Escort fee per 1/2 hour minimum ($50/hour) $25.00 Maintenance fee for snow removal (minimum 1 hour) $75.00/hr Equipment Usage fee/per hour plus labor fee $125.00/hr RFD labor fee -/per hour plus parts/equipment

Base $50.00/hr Skilled $65.00/hr Administration $75.00/hr Ground Security Coordinator fee (1/2 hour minimum) $60.00/hr

Aircraft Parking Fee(excluding active overnight aircraft)

Fee will be charged after 24hours. Based on square feet of aircraft – length by wing span. The following fees will not apply to general aviation or corporate aircraft. Per day rates.

Group 1 $4.66 Group 2 $11.49 Group 3 $35.24 Group 4 $60.35 Group 5 $87.14 Group 6 $125.99

96

Exhibit 3

Acronym and Glossary of Terms

AAAE - American Association of Airport Executives ACI-NA - Airports Council International – North America Accrual Basis of Accounting- This basis of accounting attempts to record financial transaction in the period they occur rather than recording them in the period they are paid. AD&D - Accidental Death and Dismemberment AFR - Annual Financial Report Aircraft Operation- The landing or take off of an aircraft. Airline Load Factor – The percentage of seats occupied on an aircraft. Airport – Refers to the Chicago Rockford International Airport. Airport Improvement Program (AIP) – A Federal Aviation Administration program periodically reauthorized by Congress which distributes the proceeds of the federal tax on airline tickets to airports through grants for eligible construction projects and land acquisition. Airport Layout Plan (ALP) – A blue print of an airport required by the Federal Aviation Administration which shows current and future airport development. Airport Master Plan – An airport master plan represents the approved actions to be accomplished for phased development of the airport. Master plans address the airfield, terminal, landside access improvements, modernization and expansion of existing airports and establish the premise for site selection and planning for a new airport. Airport Operation - One landing or takeoff Airside – The airfield side of an airport used by aircraft, runways, taxiways, and aircraft parking aprons. Amortization – (1) The gradual reduction of a debt by means of equal periodic payments sufficient to meet current interest and liquidate the debt at maturity. (2) The process of spreading the costs of an intangible asset over the expected useful life of the asset. (3) The deduction of capital expenses over a specific period of time. Similar to depreciation, it is a method of measuring the “consumption” of the value of long-term assets like equipment and buildings. ARFF – Aircraft Rescue and Fire Fighting. The Authority – Refers to the Greater Rockford Airport Authority Balanced Budget – a budget where the revenues equals expenditures.

97

Exhibit 3 (continued) BOD - Biochemical Oxygen Demand Bond – A written promise to pay a specified sum of money, called principal, at a specified maturity date along with periodic interest paid at a specified percentage of the outstanding principal. They are usually used for long-term debt. Budget – A financial plan for a specified period of time (fiscal year) that matches planned expenses and revenues with planned services. Budget Calendar – The schedule of key dates or milestones that the Authority follows in the preparation, adoption and administration of the annual budget. BFYE – Budgeted Fiscal Year End Capital Budget - Budgeted expenditures for capital improvements, capital outlay, debt service and grant service that are in excess of $2,000 and have a life expentancy in excess of 2 years. Capital Improvement Program – A rolling, near-term five year program that provides for critical needed improvements and asset preservation. The program includes projects that address federal security requirements, improved airfield safety and enhance revenue potential. Cash Equivalent – In the context of cash flows reporting, short term highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cost Centers – An area of the Airport to which a revenue or expense is attributed, e.g., airfield, terminal, etc. Cost Per Enplanements – The airlines’ airport cost, landing fees and rents, divided by the total number of passengers enplaned at the airport. CPE - Continuing Professional Education CPI-W - Consumer Price Index – Urban Wage Earners & Clerical Workers CY – Calendar Year Deplaning Passenger – An arriving passenger. Depreciation – Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of physical elements, inadequacy or obsolescence. Enplaning Passenger – A departing Passenger.

98

Exhibit 3 (continued) Enterprise Fund – Established to account for operations, including debt service that are financed and operated similarly to private businesses – where the intent is the service is self-sufficient, with all costs supported predominantly by user charges. FAR – Federal Aviation Regulations FAS - Fixed Asset Schedules Federal Aviation Administration (FAA) – A component of the Department of Transportation with primary responsibility for the safety of civil aviation. Federal Grants – FAA’s Airport Improvement Program provides both entitlement and discretionary grants for eligible airport projects. Entitlement funds are determined by a formula according to enplanements at individual airports. The authority applies for discretionary grants from the FAA through a Letter of Intent (LOI) process. Each LOI represents an intention to obligate funds from future federal budget appropriations. The issuance of a Letter of Intent is subject to receipt of Congressional appropriations for grants to airports, and does not itself constitute a binding commitment of funds by the FAA. For planning purposes, the amounts in approved LOI from FAA are used by the Authority as the estimate of federal discretionary grants to be received. FIS - Federal Inspection Service Fiscal Year – A 12 month period, other than a calendar year, used for financial reporting purposes. The GRAA’s fiscal year begins May 1st and ends April 30th. Fixed Base Operator (FBO) - Businesses on airports that sell fuel to private plane owners, provide aircraft parking, as well as aircraft maintenance and mechanical services. Flight Information Displays (FID) – Electronic displays to inform passengers of the status of their flight, such as arrival time, and terminal building gate number. FOD – Foreign Object Debris or trash on the airfield. FTZ - Foreign Trade Zone FYE - Fiscal Year End GAAP – General Accepted Accounting Principles are uniform minimum standards and guidelines for accounting and financial statement reporting. GASB – Governmental Accounting Standards Board, the body responsible for establishing GAAP for governmental entities. General Aviation (GA) – The activities of privately owned aircraft that are not used for commercial purposes, such as the movement of passengers or freight. GFOA - Government Finance Officers Association

99

Exhibit 3 (continued) GO - General Obligation (Bonds) GRAA - Greater Rockford Airport Authority ILS - Instrument Landing System IMRF - Illinois Municipal Retirement Fund, retirement fund for all Authority employees Infrastructure - Airport runways, taxiways, aprons and utility systems INS - Immigration and Naturalization Service IPAA - Illinois Public Airports Association Jet Bridge – A mechanical tunnel used by passengers to pass from the terminal building to an aircraft. Landed Weight – The maximum gross certificated landed weight of an aircraft, or all aircraft landing at an airport in a fiscal year, which is not dependent on the number of passengers on board. Landing fee – The rate charged by an airport to commercial aircraft operators per thousand pounds of landed weight. Landside – All areas of land owned and maintained by the RTAA outside of the airfield areas perimeter fence. M&I - Meals and Incidentals Non-Airline Revenue – Airport revenue earned from sources other than airlines, such as concessions revenues: Merchandise, Food and Beverage, Rental Car, etc. Airports try to maximize non-airline revenue to help reduce the amounts they collect from the airlines. Non Signatory Airline – Airlines that have not signed an agreement with airport committing to rent an airport leasehold for a fixed period of time. OTC/DDEC - Oshkosh Training Center/Diesel Diagnostic Electronic Components Part 107 – A section of the Federal Aviation Regulations having to do with an airport operator’s responsibilities for airport security. Part 139 – A section of the Federal Aviation Regulations having to do with the certification of an airport’s airfield. Part 150 Study – A noise study defined by a section of the Federal Aviation Regulations, that when completed, makes an airport eligible for noise insulation and related land acquisition grants. The Study produces two documents, the Noise Exposure Map and the Noise Compatibility Program.

100

Exhibit 3 (continued) Passenger Facility Charge (PFC) – A $4.50 charge (net $4.39 to Airport) attached to each ticketed passenger that boards an airplane at the Airport. Certain types of passengers, including military, are excluded from the Passenger Facility Charge.

PEBSCO - Public Employees Benefit Services Corporation, optional 457 deferred compensation for employees

Proprietary Fund – One of three Fund classifications established by the GAAP standards. This Fund is used to account for funds for operations which are managed in a manner similar to private business. Unlike governmental funds, net income is determined in Proprietary Funds. The two types of Proprietary Funds are Enterprise and Internal Service Funds. RFD- The FAA three letter identifier for the Chicago Rockford International Airport. RWY – Runway Security Identification Display Area (SIDA) – Secure areas of the airport in which identification badges are required to be displayed. Signatory Airline – Airlines that have signed an agreement with an airport committing to rent an airport leasehold for a fixed period of time. SRE - Snow Removal Equipment T-Hangar – A small hangar that resembles a “T” when viewed from above. T hangars are placed next to each other, and inter locked back to back, to maximize the number that can be placed in an area which minimizes the land rental component of their cost. Transportation Security Administration (TSA) – A component of the Department of Transportation with primary responsibilities for the security of civil aviation. TSS - Total Suspended Solids TXY – Taxiway UPS - United Parcel Service

101

Exhibit 4 Statistics

Airport Authority Area Located entirely within Winnebago County, Illinois, the Authority Area includes, Rockford, Machesney Park, Loves Park, Cherry Valley, Roscoe, New Milford and some unincorporated areas Airport Location Southwest quadrant of the City of Rockford 4 miles south of downtown Rockford, IL 80 miles WNW of O’Hare International Airport Access Interstate 90 and 39 U.S. Highway 20 Illinois Route 2 and 251 Area 3,000 acres Elevation 736 ft. above sea level LAT 42 11” 36” (42 degrees, 11 minutes and 36 seconds) LNG 89 05’ 50” (89 degrees, 05 minutes and 50 seconds) Airport Code RFD Runways Runway 1/19, 8,200’ X 150’, ILS Category I Runway 7/25, 10,000’ x 1150’, ILS Category II/III Tower TRSA 24/7-365 FBOs Emery Air, Inc., North American/Pride Scheduled Passenger Service Allegiant Airlines and Apple Vacations Terminal Airlines 2,211 sq. ft. Tenants 4,443 sq. ft. Public/Common 30,433 sq. ft. Mechanical 7,714 sq. ft. Total 44,801 sq. ft. Number of Passenger Gates 5 Number of Loading Bridges 5 Number of Concessionaires in terminal 1 Number of rental car agencies in terminal 3 Car Rental Agencies Avis, Hertz and National/Alamo Parking Short-Term 1,477 Rental Cars 190 Employees 54

102

Exhibit 4 (continued) Cargo UPS Buildings 670,000 sq. ft. International Cargo Building 70,000 sq. ft

Cross Dock Building 27,600 sq. ft. Cargo Building 21,000 sq. ft. International Customs/Immigration Federal Inspection Service Facility Service Area Population within Authority Area, 227,773 Population within 25 miles, 740,000 Population within 60-minute drive, 2.5 million Population within 90-minute drive, 8.4 million Airport Authority Area Equalized Assessed Valuation

% Change from Prior

Yr

2010 $3,525,363,000 -5.31%

2011 $3,350,384,000 -4.96%

2012 $3,064,894,000 -8.52%

2013 $2,806,901,362 -8.42%

2014 $2,648,100,021 -5.66%

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

2010 2011 2012 2013 2014

Tho

usa

nd

s

103

Exhibit 4 (continued) Bond Rating 1999 A3

2000 A2 2001 A2 2002 A2 2003 A1

Based Aircraft Single engine 69 Multi engine 17 Jet 20 Helicopters 3 Total 109 Airport Operations

CY9 CY10 CY11 CY13 CY14

Air Carrier 10,649 9,727 8,731 8,341 8,016

Air Taxi 2,426 2,481 3,214 3,110 1,908

GA Local 10,212 13,327 10,673 12,470 8,631

GA Itinerant 20,676 18,485 16,896 16,388 14,050

Military 2,318 1,604 1,690 736 1,577

Total 46,281 45,624 41,204 41,045 34,182

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

CY9 CY10 CY11 CY13 CY14

Military

GA Itinerant

GA Local

Air Taxi

Air Carrier

104

Exhibit 4 (continued) Passengers

% Change from Prior

Yr

FYE10 201,544 13.73%

FYE11 206,382 2.40%

FYE12 211,894 2.67%

FYE13 208,778 -1.47%

FYE14 209,885 0.53%

Cargo Aircraft Landed Weight (lbs.)

% Change from Prior

Yr

FYE11 902,395,080 -11.65%

FYE12 884,405,380 -1.99%

FYE13 806,893,740 -8.76%

FYE14 779,424,820 -3.40%

FYE15 788,767,700 1.20%

195,000

200,000

205,000

210,000

215,000


700

750

800

850

900

950


Mill

ion

s

105

Exhibit 4 (continued) Cargo Enplaned and Deplaned (lbs.)

% Change from Prior Yr

FYE11 259,112,297 -13.53%

FYE12 291,223,839 12.39%

FYE13 269,882,551 -7.33%

FYE14 246,954,308 -8.50%

FYE15 252,084,168 2.08%

Fuel Flowage (gallons)

% Change from Prior Yr

FYE11 17,242,721 -1.49%

FYE12 15,223,883 -11.71%

FYE13 11,820,418 -22.36%

FYE14 9,744,711 -17.56%

FYE15 9,799,912 0.57%

220

230

240

250

260

270

280

290

300


Mill

ion

s

0

2

4

6

8

10

12

14

16

18

20


Mill

ion

s

106

Exhibit 5

ORDINANCE NO. 15-04 FISCAL YEAR 2016 BUDGET AND APPROPRIATION ORDINANCE CERTIFICATE

I, PAUL CICERO, Chairman of the Board of Commissioners of the Greater Rockford Airport Authority, Winnebago County, Illinois (the "Authority"), a municipal corporation of the State of Illinois, certify that the attached is a true and complete copy of an Ordinance entitled:

"GREATER ROCKFORD AIRPORT AUTHORITY BUDGET AND APPROPRIATION ORDINANCE FOR THE FISCAL YEAR BEGINNING May 1, 2015 AND ENDING April 30, 2016,"

unanimously passed at a regular meeting of the Board of Commissioners (the "Board") of the Authority at which a quorum of the Board was present, and held at the offices of the Authority at 60 Airport Drive, Rockford, Illinois, on April 23, 2015 having complied with the provisions of the Open Meetings Act (5 ILCS 120/1 et. seq.).

I further certify that there have been no amendments or revisions to said Ordinance, and that it is now in full force and effect.

IN TESTIMONY WHEREOF, I have set my hand and affixed the corporate seal of the Authority this 23rd day of April, 2015. [SEAL] (signed April 23, 2015)_______ Paul Cicero

Chairman, Board of Commissioners Greater Rockford Airport Authority

107


ORDINANCE NO. 15-04

GREATER ROCKFORD AIRPORT AUTHORITY BUDGET AND APPROPRIATION ORDINANCE

FOR THE FISCAL YEAR

BEGINNING May 1, 2015 AND ENDING April 30, 2016 BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE GREATER ROCKFORD AIRPORT AUTHORITY, WINNEBAGO COUNTY, ILLINOIS, AS FOLLOWS: Section 1. Adoption of Budget The Tentative Budget, as previously presented, is adopted as the Budget for the Greater Rockford Airport Authority, Winnebago County, Illinois, the “Authority,” and is attached hereto and incorporated herein by reference. The amounts specified are the maximum estimated for probable expenditure or commitment prior to April 30, 2016, and there is included in the appropriated amounts funds derived from other sources than local taxation, and which may be spent for the benefit of the Authority without actually being received and expended by it. All unexpected balance(s) of any item or items of any general appropriation made by this Ordinance may be expended in making up any deficiency in any item or items in the same general appropriation made by this Ordinance.

Placed on file for Public Inspection March 3, 2015

Notice of Public Hearing Published on March 12, 2015

Public Hearing held April 23, 2015 (at 5:00 p.m. Central Daylight Savings time, pursuant to Notice)

Section 2. Appropriations.

For the fiscal year ending April 30, 2016, there is hereby appropriated for the corporate purposes of the Greater Rockford Airport Authority the total sum of $10,326,952 which sum of money is deemed necessary to pay the costs of operating and maintaining the Greater Rockford Airport, and other expenses of the Authority, the purposes of each such appropriation being specified in the attached Budget document.

108

Exhibit 5 (continued) Section 3. Filing with County Clerk.

That a certified copy of this Ordinance shall be filed with the County Clerk on or before May 23, 2015 by the financial officer of the Authority.

Section 4. Conflicting Orders, Resolutions or Ordinances.

That all orders, resolutions or ordinances in conflict herewith are repealed insofar as such conflict exists.

Section 5. Effective Date.

This Ordinance shall be effective following its passage by the Board and upon its approval by the Chairman of the Board.

Moved for adoption by Commissioner __Derry____ and seconded by Commissioner _Copeland____.

Roll Call

Paul R. Cicero _aye _ Kenneth Edward Copeland _aye _ Thomas DalSanto _absent Patrick Derry _aye _

Thomas Myers _aye Ray Wetzel _absent

Passed and approved by the Board of Commissioners of the Greater Rockford Airport Authority on April 23, 2015.

(signed April 23, 2015)__________

Paul Cicero Chairman, Board of Commissioners

Greater Rockford Airport Authority ATTEST: (Signed April 23, 2015) _ K. Edward Copeland Treasurer, Board of Commissioners Greater Rockford Airport Authority

109


ORDINANCE NO. 15-04

2015-2016 BUDGET AND APPROPRIATION ORDINANCE

CERTIFICATE

I, K. Edward Copeland, Treasurer of the Board of Commissioners of the Greater Rockford Airport Authority, Winnebago County, Illinois (the "Authority"), a municipal corporation of the State of Illinois, certify that I am Treasurer of the Board of Commissioners of the Authority and that attached is an estimate prepared by me for the revenues, by source, anticipated to be received by the Authority during such fiscal year of the Authority, pursuant to 50 ILCS 330/3, as amended.

IN TESTIMONY WHEREOF, I have set my hand and affixed the corporate seal of the Authority this 23rd day of April, 2015. [SEAL] (Signed April 23, 2015)___________

K. Edward Copeland Treasurer, Board of Commissioners Greater Rockford Airport Authority

110

Exhibit 5 (continued) ESTIMATED REVENUES BY SOURCE

FISCAL YEAR 2016

EXPECTED CASH FLOW DURING THE YEAR:

SOURCES Operating Budget Revenue $ 5,532,811 Non-Operating Revenue 616,418 Tax Levy 2,861,000 AIP Fund Reimbursement 705,000 Passenger Facility Charges 541,723 Debt Issue 0 Other Financing Sources 70,000 Total Sources $10,326,952 Beginning Fund Balance, FY15 5,695,000

Total Sources and Fund Balance $16,021,952

USES Operating Expenditures $ 8,515,905 Non-Operating Expenditures 115,032 Debt Service 447,197 Capital Expenditures 1,195,500 Total Uses $10,273,134 Ending Fund Balance, FY16 5,748,818

Total Uses and Ending Fund Balance $16,021,952

111

Greater Rockford Airport Authority 60 Airport Drive

Rockford, Illinois 61109-2902 Phone: 815-969-4000. Fax: 815-969-4001

www.FlyRFD.com

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