RockfoRd, IllInoIs · 2019-06-22 · Rockford, IL 61109 Dear Mr. Chairman and Commissioners:...

f i s c a l y e a r 2 010

greater rockford airport authority RockfoRd, IllInoIs chicago rockford international airport

annual budget & appropriation ordinance

Fiscal Year 2010 Annual Budget and Appropriations Ordinance For the period of May 1, 2009‐April 30, 2010

Greater Rockford Airport Authority

Chicago Rockford International Airport

Rockford, Illinois

Board of Commissioners Michael P. Dunn, Chairman

Brian Boyer, Secretary

Eugene H. Allen, Treasurer

Mary Norman

Peter Provenzano

Bharat Puri

Robert W. O’Brien, Jr., AAE, Executive Director

Amy M. Ott, CPA, Deputy Director of Finance & Administration

Franz Olson, Deputy Director of Operations & Facilities

Kenneth Ryan, Deputy Director of Air Cargo Development

Jan Benoit, Manager of Finance

Mission

To exceed the needs of customer and the regional community by providing facilities for passenger, cargo, corporate, general and military aviation. The Authority will provide safe, convenient, efficient, and economically self‐

sustaining aviation related infrastructure to promote economic development of the region.

Vision

To provide a world‐class airport and transportation infrastructure which is the most efficient, economically self‐sustaining, safe, convenient and cost

competitive transportation facility in the region.

Table of Contents

TRANSMITTAL LETTER

Budget Objectives ..................................................................................................................... 1 Overview and Economic Conditions ........................................................................................ 2 Budget Summary ....................................................................................................................... 5 History ............................................................................................................................. 6 Organization ............................................................................................................................ 7 Strategic Plan .......................................................................................................................... 10 Financial Policies .................................................................................................................... 12 Budget Document ................................................................................................................... 17 Budget Process ........................................................................................................................ 17 Distinguished Budget Presentation Award ............................................................................. 18 Revenue ............................................................................................................................... 19 Expenditures ........................................................................................................................... 20 Capital Contribtuions .............................................................................................................. 22 Debt Service ........................................................................................................................... 22 Capital Improvement Program ............................................................................................... 23 Net Assets .......................................................................................................................... 25 Reserve Funds ......................................................................................................................... 25 Acknowledgement .................................................................................................................. 27

OPERATING REVENUE

Summary ............................................................................................................................... 28 Budget ............................................................................................................................... 30 Justifications ........................................................................................................................... 31

OPERATING EXPENSES

Summary ............................................................................................................................... 35 Combined Departmental Budgets .......................................................................................... 36

Finance and Administration Department Summary ............................................................................................................................... 38 Budget ............................................................................................................................... 39 Justifications ........................................................................................................................... 40

Operations and Facilities Department Summary ............................................................................................................................... 46 Budget ............................................................................................................................... 47 Justifications ........................................................................................................................... 49

Air Service Marketing Department Summary ............................................................................................................................... 55 Budget ............................................................................................................................... 56 Justifications ........................................................................................................................... 57

Terminal Service Department Summary ............................................................................................................................... 60 Budget ............................................................................................................................... 61 Justifications ........................................................................................................................... 62

AirFest Department Summary ............................................................................................................................... 66 Budget ............................................................................................................................... 67 Justifications ........................................................................................................................... 68

NON‐OPERATING REVENUES AND EXPENSES

Budget ............................................................................................................................... 72 Justifications ........................................................................................................................... 73

CAPITAL IMPROVEMENT PROGRAM ................................................................................................... 74 EXHIBITS

Exhibit 1 Tentative Budget and Appropriation Ordinance ..................................................... 79 Exhibit 2 Rate & Charges Ordinance ....................................................................................... 81 Exhibit 3 Acronym and Glossary of Terms .............................................................................. 83 Exhibit 4 Statistics ................................................................................................................... 87 Exhibit 5 Fiscal Year 2010 Budget and Appropriation Ordinance .......................................... 90

April 24, 2009 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, 2009. The Authority operates the Chicago Rockford International Airport (RFD). The budget includes funds to market and develop passenger service at RFD and the capital budget includes funds for significant infrastructure upgrades to support the expansion and growth of air cargo. In prior year targeted efforts were made with the many international cargo carriers with various meetings including multiple trips to the Asian rim. The goal is to establish new international cargo service at RFD by the second half of the fiscal year. The Foreign Trade Zone (FTZ) is on a continuous growth pattern with increased awareness to the region on the economic benefits of the zone. The FTZ will go through a reorganization to allow potential users to complete the application process faster thereby reducing the payback period and making it an even more attractive option for the smaller organizations. The budget strategically directs the allocation of resources to best enable the Authority to both 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 next year and into the future. Budget Objectives The Authority’s goals for the 2010 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

Enhance public and private partnerships with the Authority through collaboration and coordination

Continue to expand passenger service with new destinations and airlines both domestic and international

Continue to expand air cargo with new international airlines Expand economic development at RFD through the growth of the Global Trade Park and Foreign Trade Zone

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. 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 has unrestricted airspace and a level seven 24 hour Air Traffic Control Tower. RFD is a world‐class airport capable of landing aircraft in Category III conditions. RFD is a United States Customs Port of Entry and grantee of Foreign Trade Zone (FTZ) #176. The diverse activities at RFD cause it to have a greater economic impact on the region it serves than any other commercial service airport in the State of Illinois, excluding the City of Chicago's airport system. RFD is located in the southwest quadrant of Rockford, Illinois with easy access from five major highways. It is located approximately 85 miles northwest of Chicago, Illinois; 90 miles southwest of Milwaukee, Wisconsin; 60 miles southwest of Madison, Wisconsin; 90 miles east of Dubuque, Iowa; and 90 miles northwest of Moline, Illinois. The airport covers an area of about 3,000 acres with 800 of those acres airfield related. The air market service area ranges from 2,500,000 people at 60 minutes to 8,400,000 people at 90 minutes. The airport is geographically centered within the region.

Winnebago County and the region has seen an drop in the economic climate during the last year with unemployment rates increasing to a high of 12.1% and indicators showing this will continue to

Greater Rockford Airport Authority FY2010 Budget

2

rise for fiscal year 2010. This increase is related to the overall global economics of the time and the continued downsizing and elimination of positions in the manufacturing industry with plant closings and/or being moved out of the country. However on the upside the Aviation industry in the region is growing with expansions and new business relocating to the area to complement the existing corporations. These changes however will take longer to show the effect on the economic climate as most new jobs created by these increase are skilled and professional level. Historically, Winnebago County and the region have been highly dependent on the manufacturing industry. This is slowly changing to include a mix of logistics, back office/call centers, and food processing. The region is known for its high level of aerospace industries and the growth is reflected that area as well. 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, DHL and BAX Global Facilities; 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 local economy that influences the willingness of the consumer to purchase air travel. RFD is home to the second largest air hub sorting facility in United Parcel Service's system, as well as home to DHL and BAX Global facilities. Fees associated with cargo account for 50% of the operating revenue of the Authority. The Authority is not immune to the global economic crisis and this year statistics and revenues reflect that impact. The most recent FAA cargo reports state RFD is the 18th largest cargo airport in the United States. However, RFD has seen its first significant decrease since 2003. The annual total of gross landed weight for all cargo aircraft for the year was down 11%; however, the national average was closer to a 22% decrease. A majority of this was a reduction in flights for UPS but also during the year, DHL ended their once daily DC‐9 flight. Cargo is a leading indicator and we fully believe that as the economy begins to grow, so will our cargo activities. With the addition of a new International Cargo apron and facility RFD can compete globally to become one of the top cargo airports in the world. It is estimated that RFD creates an economic impact of over $800 million annually to the region. Feeding off the cargo airlines are 60 motor freight carriers serving 37 terminals.

‐

200

400

600

800

1,000

1,200

1,400

1,600

FYE96 FYE97 FYE98 FYE99 FYE00 FYE01 FYE02 FYE03 FYE04 FYE05 FYE06 FYE07 FYE08 FYE09

LBS

Millions

Cargo Landed Weight


3

Passenger growth continues to be a high priority as outline in the strategic plan. As the volatility of the passenger airlines continues it is important for RFD to diversify the base of airlines that operate at RFD. Currently Allegiant Air offers service to Las Vegas, Orlando/Sanford, Clearwater/St Pete, and Phoenix/Mesa. Direct Air offers seasonal service to Punta Gorda/Ft. Meyers, FL and Myrtle Beach also seasonal service to Cancun by Apple Vacations. Allegiant Air accounts for 84% of all seats currently available at RFD. Our goal is to increase the number of passengers and airlines. Economic issues that are outside of our control can have an effect on this plan. These issues include: the current fuel price rise, the financial condition of the airlines, and any security and safety mandates issued. The Authority is mindful of these issues as they plan for the future. The last year has seen dramatic changes in our regional and global economic condition. The year started out with rising fuel prices which peaked in August 2008. As a result of the significant increase in fuel prices, passenger service at RFD took a considerable hit during the fall with September 2008 having only 9 flights or approximately 3,400 passengers moving through our terminal which was our lowest point since 2002. The Authority is making every effort to continue to build and grow passenger service. Even though capacity has not returned to its previous levels, our average load factors are averaging over 90%, so the demand is still there and the budget includes resources to continue marketing and development of the service.

‐

50,000

100,000

150,000

200,000

250,000

FYE97 FYE98 FYE99 FYE00 FYE01 FYE02 FYE03 FYE04 FYE05 FYE06 FYE07 FYE08 FYE09

Passengers

The Federal Trade Zone (FTZ) program is a partnership between the federal government and private business with the goal to protect or create new jobs in America. We believe that the FTZ can be a catalyst to improve the economic business climate of the region. In January 2009, the Authority received approval of the expansion of FTZ #176 which now includes 22 partners, 4 activate sites/subzones and nearly $200 million of foreign merchandise moving through the Zone. In FY2009, the FTZ program reached breakeven for the Authority. The growth in movement of product slowed in the recessionary economy, but leadership expects growth to reach $500 million within the next few years. With two or three FTZ‐approved locations expected to activate by summer 2010 and a streamlined application process (reducing costs and time to access the program) offered by the FTZ Board in Washington, D.C., the growth could be exponential.


4

Budget Summary The budget presented has many highlights discussed in subsequent sections. Operating revenues is budgeted at $5,537,936 for FYE2010, a 4% decrease as both airports fees and airfest revenues are expected to be less as a result of the economic conditions. Operating expenses are budgeted at $8,759,109 which is a 2% decrease from the prior year budget. This decrease is the result a reduction in the amount of resources for passenger airline development.

FYE2008 BFYE2009 Est. FYE2009 BFYE2010

Operating RevenueAi rport fees ‐a i rs ide 2,886,795$ 2,978,113$ 2,793,792$ 2,734,940$ Ai rport fees ‐l ands ide 203,631 220,000 178,391 172,000 Lease revenue ‐on a i rport 971,989 984,175 995,658 1,122,441 Lease revenue ‐off a i rport 449,704 465,166 468,744 467,975 Ai rfes t revenue 658,245 696,911 535,121 450,050 Other 1,626,705 427,190 505,391 590,530 Tota l Opera ting Revenue 6,797,069 5,771,555 5,477,097 5,537,936

Operating ExpensePersonnel servi ces (3,179,661) (3,664,310) (3,314,155) (3,680,391) Contractua l servi ces (4,138,791) (3,856,031) (4,492,472) (3,465,688) Commodi ties (1,597,645) (987,925) (1,438,963) (1,343,330) Other (262,788) (414,700) (286,510) (269,700) Tota l Opera ting Expense (9,178,885) (8,922,966) (9,532,101) (8,759,109)

Net Operating Expense (2,381,816) (3,151,411) (4,055,004) (3,221,173)

Non‐operating Revenue (Expense)Annexa tion agreement 139,457 140,000 134,025 139,000 Interes t i ncome 468,102 405,000 189,310 200,000 Property tax l evy‐operating 2,970,527 3,117,006 3,105,225 3,272,322 Replacement tax 646,178 500,000 454,762 400,000 AIP Reimbursement Funds 3,620,747 2,000,000 1,945,210 1,000,000 Interes t expense (13,312) (8,320) (2,829) (350,000) Tota l Non‐operating Revenue (Expense) 7,831,699 6,153,686 5,825,703 4,661,322

Capital ContributionsPassenger fa ci l i ty charges 401,647 473,040 373,421 420,480 Funds from auctioned equipment ‐ 5,000 ‐ 5,000 Tota l Capi ta l Contributions 401,647 478,040 373,421 425,480

Debt Service, Sinking Fund Deposits & Other UsesDebt service principa l payments (96,000) (96,000) (96,000) (266,900) Sinking fund and opera ting reserve depos i ts (250,000) (250,000) (250,000) ‐ Landfi l l closure (25,000) ‐ ‐ Tota l Debt Service and Sinking Fund Depos i ts (346,000) (371,000) (346,000) (266,900)

Capital Improvement ProgramAirside Projects (1,695,416) (1,083,000) (109,559) (170,000) Landside Projects (17,140) (27,000) (51,487) ‐ Terminal Projects (453,907) (598,850) (1,336,302) (227,000) Admin/Operations (133,370) (167,500) (170,700) (248,700) Tota l Capi ta l Improvements (2,299,833) (1,876,350) (1,668,048) (645,700)

Excess Funds 3,205,697$ 1,232,965$ 130,072$ 953,029$


5

History Camp Grant In 1917, during World War I, RFD, then named “Camp Grant,” was a U.S. Army Calvary Camp. During World War II the Army transformed Camp Grant into a military training base and a prisoner of war detainment camp. In 1946, the State of Illinois adopted the Airport Authorities Act; thus, the Greater Rockford Airport Authority was created. The original Board of Commissioners requested and received a grant of 1,500 acres of federal land. The airfield was constructed using most of the military base infrastructure. Over the last 50 years, RFD has hosted numerous airlines including: Braniff, Ozark, Frontier, Midwest Express, TWA, American, Northwest, TransMeridian, Hooters Air, Sunship1 and United. Airlines currently serving RFD include Allegiant, Direct Air and Apple Vacations. RFD’s Terminal In 1987, a new terminal building was constructed to better meet the community’s passenger travel needs. Within the last few years, significant terminal internal reconstruction and reconfiguration projects have been completed to accommodate the many new passengers and to meet Transportation Security Administration requirements. The terminal is now at full build out and considering peak flow can accommodate up to 500,000 passengers. UPS In 1994, United Parcel Service constructed an air cargo distribution hub. The hub currently employs approximately 1,200 with an average of 25 daily‐scheduled cargo jet arrivals/departures ranging in size from 727‐100s to 747s. In 2006 UPS built a 70,000 square foot building for their new heavy freight business which began in the summer of 2006. This was the first building completed in the UPS network for the new heavy freight business. During fiscal year 2007, UPS completed $25 million dollars worth of redesign to the package handlers’ distribution hub to increase capacity. As a result, output increased by over 100%. Infrastructure Within the last several years, millions of federal dollars have been invested in airport infrastructure improvements. There are two runways: one is 8,200 feet in length; the longest is 10,000 feet in length. The 10,000ft. runway has a Category II/III Landing System which is a valuable landing aid for commercial and private pilots. In 1995 the Authority completed construction of 34 T‐hangars to promote general aviation activity. With these hangars fully occupied for some time there has been an increased need to add more T‐hangar units for our growing general aviation users. As a result of the additional interest in T‐hangars a private developer added 30 new hangar units between three buildings. Foreign Trade Zone #176 In July 1989, RFD became a User Fee Airport which brought Customs service to Rockford on a fee‐for‐service basis. It was the intention of the Chamber of Commerce and Authority to bring a full‐service Customs office and Port of Entry (POE) to the airport as well as a Foreign‐Trade Zone. 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 federal government. RFD was the first User Fee Airport to be upgraded to POE status. US Customs maintains an office staffed full‐time at RFD and inspection services are available 24 hours a day.


6

With the addition of an international arrival gate in 2005, the US Customs Office moved into new facilities at the International terminal building. 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. Total approved acreage now tops 3,100 acres. The FTZ program is an opportunity for American business to partner with the government to remain competitive and retain jobs here at home. The FTZ program clearly fits the mission of the Authority to expand business opportunity, create jobs, and assist local companies to compete more effectively in the global marketplace. 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 and an addition is currently being constructed to accommodate the additional apron built in the prior as well as creating back up options and infrastructure if at some point in the future there is the need to pump it directly to the local reclamation facility. Glycol is the key liquid component used in deicing aircraft during the winter months. 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 under ground pipeline that ships all jet fuel necessary. There are future plans expand the underground pipeline asset. Organization The Board continues its aggressive stance to further grow all areas of airport development (management, air service development, operations, and facilities). 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 Authority 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.


7

0

10

20

30

40

50

60

2003 2004 2005 2006 2007 2008 2009 Projected 2010

Personnel Positions by Department

Administration/Finance Air Service Marketing Operations/Facilities Terminal Services AirFest

Organizational Chart and Senior Management

Executive Director

Executive Assistant

Research Assistant

Deputy Director

Operations & Facilities

Deputy Director

Administration & Finance

Communications, PR &

Marketing Manager

Special Events & Sales

Manager


Manager Finance Manager


Shift Supervisor (3)

Terminal Services

Supervisor

Passengers Sales &

Services Supervisor


Technician I (10)


Technician II (1)


Technician III (3)

Accounting Assistant

(2)

Properties and FTZ

Specialist

Administrative

Assistant

Generalist


Technician II (5)

Deputy Director Cargo

Services


Specialist (2)


8

Senior Management

Robert W. O’Brien, Jr., AAE Executive Director Amy M. Ott, CPA Deputy Director of Administration & Finance Franz Olson Deputy Director of Operations & Facilities Kenneth Ryan Deputy Director of Air Cargo Development Janette Benoit Manager of Finance Thomas J. Lester Legal Counsel, Hinshaw & Culbertson LLP The Executive Director of the Authority reports to the Board of Commissioners. In BFYE, airport staff is comprised of 48 employees (including seven Commissioners) as follows:

FYE03 FYE04 FYE05 FYE06 FYE07 FYE08 FYE09 FYE10Actual Actual Actual Actual Actual Actual Actual Budget

Administration & FinanceAirport Commissioners 7 7 7 7 7 7 7 7Executive Director 1 1 1 1 1 1 1 1Deputy Directors 1 1 1 1 1 1 2 2Managers 2 2 2 1 1 1 1 1Properties & FTZ Specialist 0 0 0 1 1 1 1 1Executive Assistant 1 1 1 1 1 1 1 1Accounting Assistants 2 2 2 2 2 2 2 2Research Assistant 0 0 0 1 1 1 1 1Administrative Assistants 2 2 2 1 1 1 1 1Generalist 0 0 0 0 1 1 1 1Department Total 16 16 16 16 17 17 18 18

Air Service MarketingDeputy Director 1 1 1 1 0 0 0 0Managers 0 0 0 1 1 1 0 1Department Total 1 1 1 2 1 1 0 1

Operations & FacilitiesDeputy Director 1 1 1 1 1 1 1 1Manager 1 2 2 1 1 1 1 1Supervisor 3 2 2 2 3 3 3 3Operations & Facilities Technician I 6 6 6 5 9 9 8 9Operations & Facilities Technician II 5 4 4 3 5 5 4 4Operations & Facilities Technician III 0 0 0 0 2 0 0 0Operations & Facilities Specialist 0 0 0 0 0 1 2 4Vehicle Mechanics 3 3 3 3 0 0 0 0Environmental Technicians 2 2 2 1 0 0 0 0Operations/ARFF Specialists 7 5 0 0 0 0 0 0Department Total 28 25 20 16 21 20 19 22

Terminal ServicesSupervisor 0 0 0 0 0 2 2 2Operations & Facilities Technician II 0 0 0 0 0 1 1 1Operations & Facilities Technician III 0 0 0 0 0 2 3 3Department Total 0 0 0 0 0 5 6 6

AirFestSpecial Events Coordinator 0 0 0 0 1 1 1 1

Total Organization 45 42 37 34 40 44 44 48


9

As noted in the table and chart above the Authority has been in the process of rightsizing the organization. This has been done by evaluating the Authority at all levels and trying to find the best organizational fit. As a result of the increase in services it was necessary to have staffing on a 24 hour, seven days a week schedule. The plan for fiscal year 2010 is to add four three of the four a related to turnover in the prior that was not replaced and the addition of one new position to accommodate the 24/7 accessibility. These increases are the result of passenger growth and the ever increasing security and safety requirements at the airport. 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 five or ten years. The strategic planning process ensures that the most effective use is made of the Authority’s resources by focusing on key priorities. Following are the long term business objectives that have culminated from the current strategic planning sessions. The Long Term Business Objectives were categorized into three groups as follows:

Air Service Development Cargo Development Economic Development; Asset Utilization

Air Service Development The passenger air service development goal is to grow air service and associated infrastructure incrementally to a capacity of 5 million annual passengers per year by the year 2012. The following items will assist in this goal: 1. To effectively and proactively communicate the strategic plan to all Stakeholders. 2. Establishment of additional Fuel Farm capacity. 3. A terminal restaurant established for passenger convenience. 4. Improved roadway signage and highway access. 5. Engage the rail discussions in a proactive manner towards airport inclusion. 6. The future expansion of terminal facilities shall be completed assessing long term needs and

financing mechanisms. 7. The expansion of parking lots shall be completed assessing long term needs and financing

mechanisms. Consideration is also directed at the improvement of bus transportation to and from the airport.

8. The enhancement of area hotels shall be completed assessing needs and community support.

9. The enhancement of stakeholder awareness shall be completed. Consideration focused on the communication with stakeholders, who are the essential building blocks, to regional economic development.


10

Cargo Development The cargo development goal is to grow cargo and associated infrastructure incrementally to a capacity of 2 billion pounds of annual landed weight by the year 2012. The following items will assist in this goal: 1. Establishment of additional Fuel Farm capacity. 2. A 100,000 ft2 or greater Spec building for air cargo and related infrastructure necessary to

support the facility. 3. Improved roadway signage and highway access. 4. Engage the rail discussions in a proactive manner towards airport inclusion. 5. The enhancement of stakeholder awareness shall be completed. Consideration focused on

the communication with stakeholders, who are the essential building blocks, to regional economic development.

Economic Development; Asset Utilization The economic development; asset utilization goal is to maximize the economic impact of the airport with an efficient utilization of assets, current and future. The following items will assist in this goal: 1. Establishment of additional Fuel Farm capacity. 2. The enhancement of the Rock Valley College A&P School and potential expansion of an

educational campus. 3. The establishment of Aircraft MRO on airfield. 4. A report/executive summary on Freedom Field Alternative Energy Park and options for

growth and relationship to airports. 5. Continuation and growth of Rockford AirFest. 6. Improved roadway signage and highway access. 7. Engage in the rail discussions in a proactive manner towards airport inclusion. 8. The expansion of parking lots shall be completed assessing long term needs and financing

mechanisms. Consideration is also directed at the improvement of bus transportation to and from the airport.

9. The enhancement of area hotels shall be completed assessing needs and community support.

10. Summary on the enhancement/utilization of the Global Trade Park and Foreign Trade Zone are needed.

11. A report/executive summary on the enhancement of stakeholder awareness shall be completed. Consideration focused on the communication with stakeholders, who are the essential building blocks, to regional economic development.


11

Financial Policies The Authority’s long‐range goal is growth with balanced self‐sufficiency and 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 prepares its budget partially on a cash basis. This basis is a departure from accounting principles generally accepted in the United States of America in that capital expenditures, including capital outlays and improvements, debt service and grant service, are entirely recognized in the year purchased or paid. Therefore, depreciation is not budgeted. All other revenues and expenses are budgeted on an accrual basis. 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 affiances, and increasing fees to match related expenses. Operating Revenues and Expenses The Authority distinguishes operating revenues and expenses from nonoperating 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 stormwater retention fees, fuel permits, quarry fees, etc. Operating expenses for the Authority include personnel and benefit costs, contractual services costs,


12

commodities and others. All revenues and expenses not meeting this definition are reported as nonoperating 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 110 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. Interest Rate Risk – Investments: The Authority’s Investment Policy limits the maturities of investments as a means of managing its exposure to fair value losses arising from increasing interest rates to a maximum maturity of 24 months. Credit Risk: The State of Illinois and the Authority’s approved Investment Policy allows the Authority to deposit monies in specified types of instruments. These instruments include the following:

Securities issued or guaranteed by the United States of America, Interest bearing accounts of banks and savings and loans insured up to $250,000 by the Federal Depository Insurance Corporation,

Short‐term obligations (less than 180 days) of U.S. corporations with assets over $500 million rated in the highest classification by at least two rating agencies,

Insured accounts of an Illinois credit union chartered under United States or Illinois law, Mutual funds, Money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreements to repurchase these same types of obligations, and

Illinois Funds. Custodial Credit Risk – Investments: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Authority will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Authority’s investment policy addresses custodial credit risk, as applicable, as detailed under Custodial Credit Risk – Deposits. Concentration of Credit Risk – Investments: Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The Authority’s investment policy allows for no more than 40 percent of the total investment portfolio, exclusive of U.S. Treasury securities held in safekeeping to be held at one financial institution.


13

Accounts Receivable Accounts receivable includes amounts due from Authority tenants as well as amounts due from the federal and state governments for grants. The amount shown is reduced by an estimated reserve for uncollectible accounts. Taxes Receivable Taxes receivable include taxes levied in the current fiscal year that will be paid in the following fiscal year. The balance, net of a one percent allowance for uncollectible amounts, is fully deferred at year‐end because the tax levy will be used to fund expenses of the following year. Designated Assets Designated assets include all deposits and receivables either legally restricted or Board designated for specified purposes. Designated assets are segregated, by purpose, as follows:

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

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

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

When expenses are incurred for which both designated and unrestricted resources are available, it is the Authority’s policy to first apply designated resources. The Authority understands the need to replace capital items. In order to minimize the impact of future capital expenses, staff has planned for capital replacements with the use of designated assets and they are funded by annual deposits from excess funds available. Capital Assets An accounting and inventory of all capital assets is maintained to ensure proper accounting control resulting in accurate financial reports. All individual items with a cost in excess of $2,000 that provide more than one year of economic benefit are capitalized. Depreciation is calculated by the straight‐line method using the assets useful life that is classified as follows: Years Buildings 20 Infrastructure 20 Machinery, equipment & vehicles 5 – 10 Furniture & fixtures 3 – 5 Routine maintenance and repairs are expensed as incurred. Significant betterment and improvements are capitalized and depreciated over their estimated useful lives. Interest incurred during the construction phase of capital assets is reflected in the capitalized value of the assets constructed, net of interest earned on the invested proceeds over the same period. Deferred Charges and Unamortized Premium on Bonds All costs associated with the issuance of bonds and other long‐term debts are capitalized. Amortization is calculated by the straight‐line half‐year (“bonds outstanding”) method over the term of the debt. Bond premiums are amortized in the same manner. This method does not differ


14

significantly from the effective interest method. Deferred charges also include UPS organizational costs and engineering costs which are being amortized using the straight‐line half‐year method. Compensated Absences The Authority accrues vacation and sick pay benefits as earned by its employees. 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 two 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.

Unrestricted net assets consist of all other net assets that do not meet the criteria above. Operating Reserves The Authority maintains operating reserve funds to protect against the need to reduce service levels, staff, or raise fees due to temporary revenue shortfalls or unprecedented one time expenditures. 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


15

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

The Authority may issue additional bonds; however, voter approval is required. The total amount of the bonds may not exceed two and three tenths percent (2.3%) of the total assessed valuation. The 2.3% debt limit is calculated as of the time of issuance of the bonds and includes all Authority indebtedness. The Authority is also subject to a 2.875% debt limitation with respect to all outstanding indebtedness. This limit is calculated as of the date of issuance of any debt, except tax anticipation notes, tax anticipation warrants and revenue bonds. Tax Rate The current tax rate for the Authority is budgeted at $.089 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 $1,500 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 Manager of Finance is to perform internal and external auditing functions. In the course of this assignment, the Manager of Finance is authorized to have full, free and unrestricted access to all records relating to the audit.


16

Budget Document Budgeting serves as an important management tool to plan, control and evaluate the operations of the Authority. The budget has been prepared in accordance with the standards set forth by the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award Program to fully disclose the financial operations of the Authority. Upon successful review and approval, this budget will be submitted to the GFOA for their consideration of this prestigious award. The Authority used zero‐based budgeting (ZBB) techniques, which required staff to provide justification and support for all expenditures. This allows for evaluation of expenditures to ensure that each item supports and contributes to the goals of the organization. ZBB results in a more meaningful document that has the support of staff for implementation and utilization. This budget is divided into six components: transmittal letter, revenue budget, operating expenses budget, non‐operating budget, capital budget, and exhibit section. The operating expense budget is further broken down into departmental budgets. Budget Process Budget Adoption. The Authority’s budget is adopted by ordinance to comply with the provisions of State of Illinois Statute 50 ILCS 330/3, which requires a governing body to approve a budget within or before the first quarter of the fiscal year. In accordance with that same statute, the budget serves as the annual appropriations ordinance. The budget is prepared on a cash basis, whereby all revenues and expenses are recognized in the period in which cash is received and/or paid. Budget Calendar. State law requires a tentative budget and appropriation ordinance be made conveniently available for public inspection at least thirty (30) days prior to final action thereon. Further, at least one (1) public hearing must be held prior to budget adoption and notice of this public hearing must be published in a newspaper at least thirty (30) days prior to the time of such hearing. The tentative schedule for this process is as follows: 26 February 2009 Approve Tentative Budget and Appropriation Ordinance (Exhibit 1) 5 March 2009 Public Hearing Notice published in newspaper. 23 April 2009 Public Hearing. 23 April 2009 Approve Adoption of Budget and Appropriation Ordinance (Exhibit 5). 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, 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 committed comprised of the same meets monthly to discuss and review any significant items or changes.


17

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, 2008. This was the tenth 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.


18

Revenues Two types of revenues are budgeted, operating and non‐operating. Operating revenue is revenue derived from the day‐to‐day operations of the airport. Operating revenue includes landing fees, fuel flowage fees, hangar leases, land leases, building leases, AirFest revenues, operating grants, and FTZ fees. Non‐operating revenue is revenue that is a consequence of operating the airport; e.g., interest income. Shown below are the historical annual operating revenues. There was a positive trend through FYE98, mostly attributable to United Parcel Service’s presence in FYE94. Since FYE98, operating revenues had steady growth through 2004 and increased at a higher rate as a result of the return of passenger air service and the decision to produce an airshow for the region. The FYE2010 budget projects only a minimal increase of 1% related to lease revenues.

$‐

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Est 2

009

Bud 20

10

Thou

sand

s

Operating Revenue History

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 in the chart comparison below a minimal increase in the fixed revenues due to the new international cargo facility rents beginning and the expansion of FTZ participants. The reduction in Airport fees is related to the decrease in activity in the cargo carrier as a result of the global economics with less items being bought and sold so therefore less product needing to be shipped.


19

Airport Fees52%Lease

Revenues29%

AirFest Revenues

8%

Other11%

FYE2010 Revenue by Type

Airport Fees54%Lease

Revenues27%

AirFest Revenues

10%

Other9%

FYE2009 Revenue by Type

Non‐operating revenues consist predominantly of 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 $.089 per $100 of assessed valuation and the projected 5% increase is the result of an increase in the overall assessed valuation. Other items are expected to decrease as a result of the low interest rates on investments and the replacement tax is based on State revenues which are seeing a dramatic decrease also related to the economy. 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 Development, Terminal Services and AirFest. Non‐operating expenditures are expenditures for debt service interest. Following are the historical annual operating expenses. There was an increase through FYE95, with expenses remaining fairly stable through FYE01, and a decrease two years thereafter. This was the result of some restructuring in the public safety department, which is now completely outsourced since the end of fiscal year 2005. Both the law enforcement and the ARFF are performed by the City of Rockford Police and Fire respectively. The trend upward beginning in FYE04 and continuing through budgeted FYE06 are the result of the addition of an Air Service Development Department which includes marketing costs and a revenue guarantee since FYE05 and the return of the AirFest. FYE2010 is projected an 8% decrease from the estimates for FYE2009. The reductions are related to fewer funds to support air service development and improvement design of snow removal chemical usage. Projections for the next three to five years show a stable increase in the operating expenses as a result of growth in passenger services.


20

$‐

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Est 2

009

Bud 20

10

Thou

sand

s

Operating Expenses History

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

Personnel Services42%

Contractual Services39%

Commodities16% Other

3%

Expenses by Category

Personnel Services accounts for 42% of operating expenses and is traditionally one of the largest cost for the Authority. This is a 1% increase from the prior year related to staffing. The Authoriy views the employees as its most important asset and works to hire the best most highly qualified and motivated people. This has proved well as RFD has grown it has highered staff in the most efficient manner. Contractual services is 39% of the total operating expenses which is 4% reduction from the prior year as the Authority plans to reduce the amount of air serivce development funds. Commodities make up only 16% of total expenses which is down from the 11% in the prior year. The increase is due to increase in costs for snow removal chemicals at the market has seen over 200% increse in


21

the unit cost of these chemicals. The Other category is for those costs not included in the other sections. Expenses included are costs related to the glycol retention treatment facility, landfill and environmental costs. The other category has decreased from the prior year mainly related to a reduction in costs to operate the glycol facility. Non‐operating expenditures consist predominantly of interest expense for debt. There has been a significant increase as a result of the issuance of new debt in the prior year. Further discussions are included in the debt section. Capital Contributions Capital contributions are inflows of cash that do not have an impact on the income statement but are included as a source in the budgeting process to help cover the costs of capital expenditures. Passenger facility charges (PFCs) are included as a capital contribution and are eligible to be used for capital. There is a slight reduction planned as a result of a decrease in the number of projected passengers for the fiscal year based on a reduction in flights available. Debt Service The primary objective of debt management is to keep the level of indebtedness within the available resources, and it is imperative to keep the debt within the legal debt limitations as established by the Airport Authorities Act. The Authority’s total debt is an $8.2 million Alternate Revenue Bond. 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 $8.2 million in 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 Quadrant Air Cargo Apron and Access Taxiway. The Authority manages debt with the goal of only incurring debt where is economically has a benefit and the following table shows the history and future of the outstanding debt.

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Million

s

Debt Schedule

General Obligation Bonds UPS Loan Revenue Bonds Interest Expense Line of Credit


22

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, 2009 are summarized as follows:

Without With Total

Voter Approval Voter Approval Debt Limitation

Assessed va luation at Apri l 30, 2009 3,722,189,135$ 3,722,189,135$ 3,722,189,135$

Debt l imi t percentages 0.75 % 2.3 % 2.875 %

27,916,419 85,610,350 107,012,938

Outstanding general obl igation debt ‐ ‐ ‐

Outstanding revenue bond debt ‐ 8,200,000 8,200,000

Total ‐ 8,200,000 8,200,000

FYE09 Legal debt margins 27,916,419$ 77,410,350$ 98,812,938$

Following is a table showing both principal and interest payments for current and planned debt.

Years Principal Interest Total

FYE10 266,900$ 352,600$ 619,500$

FYE11 278,400 341,123 619,523$

FYE12 290,400 329,152 619,552$

FYE13 260,800 393,990 654,790$

FYE14 276,500 380,037 656,537$

FYE15‐FYE28 6,827,000 3,314,748 10,141,748$

Tota l al ternate revenue bond payments 8,200,000 5,111,650 13,311,650

Less current maturi ties 266,900 352,600 619,500$

Long‐term portion of the obl igation 7,933,100$ 4,759,050$ 12,692,150$ Capital Improvement Program The Capital Improvement Program (CIP) is a 5 to 10 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 5 year equipment


23

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 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 up coming years projects as well 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 FYE2010 will include approximately $6.8 million in AIP eligible projects for airfield improvements and land acquisition. The AIP program typically provides funding for up to 95% of eligible project costs. The AIP program budget generally will include potential projects if discretionary funding becomes available. It the funding is not available during the year the project will carryfoward to the next year. The current year budget includes the Authority’s share of approximately $170,000 for $6.8 million in projects. Passenger Facility Charges were initially authorized through the Aviation Safety and Capacity Expansion Act of 1990. The Act allowed public agencies, which manage commercial airports to charge each enplaning passenger a facility charge in accordance with FAA requirements. The PFC is levied on the passenger tickets, collected by the airlines, and forwarded to the airport (less a handling fee charged by the airlines). The revenues collected are to preserve or enhance safety, security, and capacity, to reduce noise or to enhance competition. In October 1992, the Authority received approval from the Federal Aviation Administration (FAA) to impose a PFC of $3.00 per enplaned passenger. In April of 2007 the FAA approved the Authority’s request to increase the PFC level to $4.50 on all remaining reimbursements. The new collection rate commenced on June 1, 2007. The total approved collectible amount is $7,476,945 and the Authority has collected PFC’s, including interest earned totaling $2,917,515. Projected FYE2010 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 $ 170,000 Terminal Projects 227,000 Admin/Operations 248,700

Total Capital Improvements $ 645,700


24

Net Assets Following is a summary of changes in net assets for a five year period. The summary of net assets does account for these items and can not 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. This net balance rolls into the retained earning balance. Capital contributions are from federal, state and passenger facility charge fees. 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.

FYE05 FYE06 FYE07 FYE08 FYE09Net Assets , beginning of year $90,332,405 $97,120,214 $103,132,467 $110,731,482 $110,660,904

Income(loss) before Capital Contributio 361,368 (279,582) (200,662) (5,691,808) (6,386,102)

Capita l Contributions 6,426,441 6,291,835 7,799,677 5,621,230 4,098,203

Net Assets , end of year $97,120,214 $103,132,467 $110,731,482 $110,660,904 $108,373,005

Summary of Changes in Net Assets

Reserve Funds 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). One exception is the revenues received from the BAX Global Cargo Facility. A portion will be deposited into an escrow account to pay for the debt service on the revenue bond issued to purchase the facility. Included, but separately identified, is an Operating Fund Reserve of $3,000,000. Debt service account. The debt service account is to support the principal and interest payments for the Alternate Revenue Bond which are then funded from this account. Capital projects account. This fund pays for all capital improvements, capital programs unless accounted fund specifically funded thru 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. AIP funds reimbursement planned for BFYE10 of $1.0 million also is included in this account. The Authority’s target is to have an account balance of $1 million throughout the year.


25

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 is estimated to be at approximately $1,225,000. The balance appears reasonable based on the environmental engineers review. There will be no contributions to the fund during the year. The glycol retention/treatment facility fund is for future repairs and upgrades to this facility. This facility purifies the wastewater that is collected from de‐iced aircraft. The glycol treatment fund has a balance of $1,423,118 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 a snow removal vehicles or fire trucks in the future. Presently, the fund balance is $2,375,097 and there are no plans in the current year to make a contribution. The expectation is the contributions will resume once revenues being 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 $190,397. This balance appears adequate to fund the re‐roof in the future. The Authority views this is an effective way to manage large capital purchases. A summary of the beginning balances; sources, uses, and ending balances for the segregated accounts are following.

Operating Account

Debt Service Account

Capital Proj. Account Trust Account Total

Balance, 1 May 2009 8,469,223$ 620,865$ 1,090,508$ 5,440,652$ 15,621,248$

Sources

Operating revenue 5,537,936 5,537,936

Non‐operating revenue 739,000 739,000

Tax levy‐operating 3,272,322 3,272,322

PFC 420,480 420,480

AIP Fund Reimbursement 1,000,000 1,000,000

Other 5,000 5,000

Total Sources 9,549,258 1,000,000 420,480 5,000 10,974,738

Uses

Operating expenses 8,759,109 8,759,109

Non‐operating expenses 350,000 350,000

Debt service payments 266,900 266,900

Capital expenditures 645,700 645,700

Total Uses 8,759,109 616,900 645,700 ‐ 10,021,709

Net Sources (Uses) 790,149 383,100 (225,220) 5,000 953,029

Balance FYE10 before transfers 9,259,372 1,003,965 865,288 5,445,652 16,574,277

Transfers (1,000,000) ‐ 1,000,000 ‐ ‐

Balance, 1 May 2010 8,259,372$ 1,003,965$ 1,865,288$ 5,445,652$ 16,574,277$

Operating account balances include approximately $3,000,000 of operating reserves in ending balance.


26

Acknowledgement Without the leadership and the commitment of the Authority’s management team the budget would not be as comprehensive of a document. The entire organization is acknowledged for their efforts in preparation of this document. The time and effort by all Deputy Directors, Managers and Support Staff is greatly appreciated. The end result of this process will be increased ownership for a dynamic and evolving document. Sincerely,

Amy M. Ott, CPA Deputy Director of Finance & Administration


27

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

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

FYE06 FYE07 FYE08 Est. FYE09 Bud. FYE10

Thou

sand

s

Airport Fees Lease Revenues AirFest Revenues Other

Airport fees – airside, $2,734,940. 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 with the rise in fuel prices this has resulted in a decrease in activity which equates to a decrease in budgeted fuel flowage fees for the year. Landing fees for cargo are projected based on 1.34 billion pounds, which is slightly less last year’s estimates. Based on discussions with the cargo operators and other economic indicators there is a no growth planned for FYE2010. Landing fees for passenger airlines is projected to remain the same with the current carrier, Allegiant Air, as there a no expanded destinations and frequency planned during the year. Included are estimates for landing fees related to diversions. RFD is a major diversion airport for airlines flying to O’Hare, Midway and Milwaukee. In the past fiscal years RFD has generated over $30,000 each year in landing fees for diversions alone and with the planned construction at O’Hare this is expected to continue. Ramp fees are related to usage by airlines from the jetway to the terminal. In February 2006 the rates and charges related terminal and ramp usage were combined. The Authority has attempted to create 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. Ramp fees are expected to remain stable.


28

Airport fees – landside, $172,000. The revenue in this category is rental car commissions. As in the previous category, these revenues are also variable in nature. Revenues are expected to decrease. Lease revenue – on airport, $1,122,441. 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 revenue – on airport is expected to increase 12% as a result of the international cargo facility rents beginning in September 2009. Lease revenue – off airport, $467,975. 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 remain the same due to some vacant property which off‐sets the rent increases during the year. AirFest revenue, $450,050. AirFest revenues are all the dollars associated with the annual airshow. This will be the fifth show since the return of the event. With the history and experience the budget amount appears a reasonable estimate based on a two day show an approximately 75,000 in attendance. Other – $590,530. Other revenue sources include commercial operating agreement fees, fuel permit fees, quarry fees, snow removal fees, foreign trade zone fees, Airfield service fees and other miscellaneous income. Most of these revenues are incidental to the operation. However with the growth and renewed energies in the FTZ the related fees have grown from $6,000 FYE2005 to $117,500 budgeted for FYE2010. Total other revenues are projected to increase by 7% for the year.


29

Operating Revenues BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGETFYE05 FYE06 FYE07 FYE08 FYE09 FYE09 FYE10

AIRPORT FEES‐AIRSIDE4120 Fuel flowage fees 597,471$ 61,289$ 54,568$ 64,943$ 75,000$ 220,722$ 120,000$ 4140 Landing fees 1,861,005 2,295,986 2,370,591 2,486,389 2,588,113 2,310,740 2,275,000 4141 Landing fees ‐ non cargo 64,424 101,404 185,052 279,763 240,000 215,143 240,640 4142 Landings ‐ terminal fees 17,200 26,625 27,500 55,700 75,000 47,188 99,300

TOTAL FEES‐AIRSIDE 2,540,101 2,485,304 2,637,711 2,886,795 2,978,113 2,793,792 2,734,940

AIRPORT FEES‐LANDSIDE4270 Rent‐a‐car commissions 129,497 200,658 200,469 203,631 220,000 178,391 172,000

TOTAL FEES‐LANDSIDE 129,497 200,658 200,469 203,631 220,000 178,391 172,000

LEASE REVENUE‐ON AIRPORT4330 Building 481,540 516,103 543,127 556,981 570,663 578,104 603,930 4360 Land 290,167 309,276 324,731 347,430 369,481 366,938 468,111 4361 Tie‐down 6,133 5,792 13,650 7,630 5,700 6,505 5,700 4380 Terminal concession/counter/offices 113,387 83,224 82,424 59,948 38,331 44,112 44,700

TOTAL LEASE‐ON AIRPORT 891,226 914,396 963,932 971,989 984,175 995,658 1,122,441

LEASE REVENUE‐OFF AIRPORT4430 Building 116,462 126,294 141,743 139,352 149,555 150,848 149,102 4460 Land 294,167 298,366 369,286 310,352 315,611 317,896 318,873

TOTAL LEASE‐OFF AIRPORT 410,629 424,660 511,029 449,704 465,166 468,744 467,975

AIRFEST REVENUE4915 Air Show‐ Concessions ‐ 364,476 91,966 163,364 157,150 72,494 82,100 4916 Air Show ‐ Sponsors ‐ ‐ 153,947 184,424 204,750 261,268 200,000 4917 Air Show ‐ Special Promotions ‐ ‐ ‐ 19,649 30,636 16,120 22,500 4918 Air Show ‐ Marketing ‐ ‐ 16,754 24,732 15,375 5,292 12,500 4919 Air Show ‐ Show Tickets ‐ ‐ 172,975 266,076 289,000 179,947 132,950

TOTAL AIRFEST REVENUE ‐ 364,476 435,642 658,245 696,911 535,121 450,050

OTHER4920 Clean fill 18,473 37,371 44,882 52,108 ‐ ‐ ‐ 4930 Commercial operating agreement 64,969 68,208 69,706 75,377 73,990 73,808 74,830 4940 Foreign trade zone fees 6,000 9,000 36,438 53,625 58,000 63,750 117,500 4950 Fuel permits 4,200 3,825 4,263 4,200 4,200 ‐ 4,200 4955 Late fees ‐ ‐ ‐ ‐ 1,000 228 1,000 4960 Quarry fees 97,783 124,480 95,390 134,820 106,000 90,000 90,000 4965 Marketing campaign donations 13,406 477 ‐ ‐ ‐ ‐ ‐ 4970 Snow removal/maintenance fees ‐ ‐ 11,740 17,840 10,000 23,832 30,000 4975 Airfield service fees ‐ 450 12,375 15,050 12,000 30,434 111,000 4980 Stormwater fees 150,000 150,000 150,000 150,000 150,000 150,000 150,000 4985 Other agency grants ‐ ‐ ‐ 1,108,489 ‐ 50,000 ‐ 4990 Miscellaneous 36,870 523,953 477,591 15,196 12,000 23,338 12,000

TOTAL OTHER 391,701 917,764 902,384 1,626,705 427,190 505,391 590,530 TOTAL OPERATING REVENUE 4,363,154$ 5,307,257$ 5,651,167$ 6,797,069$ 5,771,555$ 5,477,097$ 5,537,936$

CODE/LINE ITEM


30

Operating Revenue Budget Justifications

AIRPORT FEES‐AIRSIDE4120 Fuel flowage fees 120,000$

4140 Landing fees 2,275,000$

4141 Landing fees ‐ non cargo 240,640$

4142 Landings ‐ ramp fees 99,300$

AIRPORT FEES‐LANDSIDE4270 Rent‐a‐car commissions

172,000$

LEASE REVENUE‐ON AIRPORT4330 Building lease‐on airport

T‐hangars, 17 @ $228.20/mo. 46,553 T‐hangars, 2 @ $261.83/mo. 6,284 T‐hangars, 1 @ $303.37/mo. 3,640 T‐hangars, 3 @ $306.97/mo. 11,051 T‐hangars, 4 @ $329.00/mo. 15,792 T‐hangars, 1 @ $347.83/mo. 4,174 T‐hangars, 2 @ $378.83/mo. 9,092 T‐hangars, 1 @ $407.88/mo. 4,895 T‐hangars, 2 @ $440.10/mo. 10,562 T‐hangars, 1 @ $469.68/mo. 5,636 Plot #A‐9, Alpine Aviation 10,612 Plot #A‐5, Rock Valley College 12,023 Plot #A‐10, Mechanical Tool & Eng. 26,397 Plot #A‐12, Emery Air Charter (former Coleman hangar) 94,150 Plot #A‐15, Heritage Aero 36,360 Plot #A‐20, Pride Aviation (former Crabtree hangar) 20,145 Plot #A‐21, Hot Shot Express 28,125 Plot #A‐31, DHL Express 112,278 Plot #A‐33, BAX Global 146,160 Total building lease‐on airport 603,930$

4360 Land lease‐on airport

Plot #A‐1, Aircraft Systems Inc. 7,982 Plot #A‐2, Kaney Aviation 14,811 Plot #A‐3, Courtesy Aircraft, Inc. 15,761 Plot #A‐3A, Courtesy Aircraft, Inc. 6,550 Plot #A‐4, Avionics Place 15,922

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 commissions of approximately $14,000 per month.

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


31


Plot #A‐6, Owners Association 13,528 Plot #A‐8, Emery Air Charter 43,581

Plot #A‐11, First Franklin Investment 8,567 Plot #A‐14, Kaney Aviation 10,787 Plot #A‐17, 1896 LLC (Rubloff) 12,154 Plot #A‐18, Rubloff Hangar, LLC 45,584 Plot #A‐19, HSI Investments, LLC (Pride) 13,799 Plot #A‐23, Emery Air Charter 68,812 Plot #A‐23A, Emery Air Charter 14,655 Plot #A‐27, Superior Plane Aircraft 5,890 Plot #A‐28, HSI Investments, LLC (Pride) 14,201 Plot #A‐29, Kaney Aviation 18,693 Plot #A‐32, Emery Fuel Farm 11,256 Plot #A‐33, BAX Global 25,208 Tandem 91,296 Airmen, Inc. ‐ Bldg D 2,506 Airmen, Inc. ‐ Bldg E 2,963 Airmen, Inc. ‐ Bldg F 3,603 Total land lease‐on airport 468,111$

4361 Tie‐down 5,700$

4380 Terminal lease‐concession/counter/officesAutomobile rental‐Avis 7,586 Automobile rental‐Hertz 7,586 Automobile rental‐National 8,134 Airline Office Space ‐ Allegiant 7,748 Food service‐coffee shop 1,236 General Serv.Adm. (FAA/TSA) 12,409 Total terminal lease 44,700$

LEASE REVENUE‐OFF AIRPORT4430 Building lease‐off airport

Prof Building ‐ CBC Customhouse Brokers 7,786 Prof Building ‐ UPS Employment 23,645 Ops Bldg ‐ FAA 3,710 Plot #I‐2 6772 Falcon Rd (Pride) 19,146 Plot #I‐8 Emery Air 13,171 Plot #I‐30 F. Newton & Associates 26,305 Plot #I‐29 ‐ CMT 10,000 Plot #I‐15 Vista, Marketing Office 27,325 Building 30 ‐ Rkfd Charter Coach 7,755 Building 30 ‐ Dickerson Nieman 1,200 Carwash Ventures Unlimited 9,058 Total building lease‐off airport 149,102$

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


32


4460 Land lease‐off airport

Farm, 638 acres @ $85/acre (Reduction for Airshow) 54,230 Plot #I‐3 Richard McQuality 15,372 Plot #I‐4 Mechanical Tool & Engineering 6,663 Plot #I‐5 Mrs. Mary Barker 5,317 Plot #I‐7 Elco Textron Industries 3,827 Plot #I‐9 Rock Road Company 75,851 Plot #I‐10 Greenfield Industries 2,835 Plot #I‐11 Fitzgerald Equipment Company 13,141 Plot #I‐12 Parkside Warehouse 12,974 Plot #I‐12A Parkside Warehouse 7,766 Plot #I‐13 Barker Rockford Company 26,593 Plot #I‐14 Clinkenbeard 6,899 Plot #I‐16 Airport Pet Lodge 383 Plot #I‐18 Freeway Rockford 3,827 Plot #I‐19 Parkside Warehouse 17,413 Plot #I‐21 Mechanical Tool 3,101 Plot #I‐22 Willett, Hofmann & Associates 6,590 Plot #I‐25 Precision Group 12,669 Plot #I‐26 Blackbird, Inc 4,424 Plot #I‐27 YMA Inc dba Airport Shell 11,471 Plot #I‐28 Comet Fabrication 5,317 Plot #I‐28B Comet Fabrication 6,786 Plot #I‐28C Comet Fabrication 4,970 Plot #RM‐2, Sjostrom & Sons 10,454 Total land lease‐off airport 318,873$

OTHER4915 Air Show‐ Concessions 82,100 4916 Air Show ‐ Sponsors 200,000 4917 Air Show ‐ Special Promotions 22,500 4918 Air Show ‐ Marketing 12,500 4919 Air Show ‐ Show Tickets 132,950

Total AirFest 450,050$

4930 Commercial operating agreements

HSI Investments, LLC, A19, A28 28,530 sq.ft. 7,988 Aircraft Systems, A1 8,064 sq.ft. 2,257 Avionics Place, A4 7,300 sq.ft. 2,044 Courtesy Aircraft, A3 10,682 sq.ft. 2,990 Emery Air Charter, A8, A12, A23 134,023 sq.ft. 37,526 Groom, Norm, T/H B6 1,449 sq.ft. 405 Kaney , A14, A29 23,280 sq.ft. 6,518 Pride Aircraft, A20 4,620 sq.ft. 1,294 Alpine Aviation, A9 2,480 sq.ft. 694

Budgeted Commercial Operating Agreements are based upon the actual square footage of the building footprint (total 249,674) for tenants inside the fence @$.28/sq.ft./yr.

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


33


Rubloff/1896, A18, A17 31,836 sq.ft. 8,914 Heritage Aero, A15 12,000 sq.ft. 3,360 Superior Plane Aircraft Coating 3,000 sq. ft. 840 Total commercial operating agreements 74,830$

4940 Foreign trade zone feesGeneral purpose/subzones ‐ various sizes (7) 65,000 Developer greenfield sites (19) 47,500 Service fees 5,000 Total foreign trade zone fees 117,500$

4950 Fuel permits Fuel permits are based upon fuel dispensing criteria.Emery Air Charter 1,125 Courtesy Aircraft 600 Rubloff LLC 600 Kaney Aviation 375 Pride Aircraft 1,125 UPS 375 Total fuel permits 4,200$

4955 Late fees

1,000$

4960 Quarry feesRoyalties‐ Rockford Sand & Gravel 90,000$

4970 Snow removal/maintenance fee30,000$

4975 Airfield service fees111,000$

4980 Stormwater feesBudgeted storm water fees. (currently UPS is the only user)United Parcel Service ($12,500 x 12) 150,000$

4990 MiscellaneousVending machine commissions 5,000 Scrap iron 500 Airport fines 2,000 Other 4,500 Total miscellaneous 12,000$

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

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

Charges to airport tenants for international rubbish, badging & escorting


34

Operating Expenses Summary

The Authority is made up of five departments that include Finance and Administration, Operations and Facilities, Air Service Development, Terminal Services and AirFest. 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 there has not been a significant change between years except that due to increased costs for materials for snow removal it was necessary reflect the 300% price increase.

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

Finance & Administration

20%

Operations & Facilities50%

Air Service Development

13%

Terminal Services8%

AirFest8%

FYE2009 BudgetExpenses by Department

Finance & Administration

22%

Operations & Facilities53%

Air Service Development

9%

Terminal Services

8%

AirFest6%

FYE2010 BudgetExpenses by Department


35

Operating Expenses Combined Departmental BudgetFinance & Operations & Air Serv Terminal AirFest BUDGET BUDGET Dollar Percentage Admin. Facilities Marketing Services FYE10 FYE09 Change ChangeCODE/LINE ITEM, All Departments

5400 Insurance 107,589 190,928$ 11,033$ 48,416$ 15,126$ 373,092$ 390,349$ (17,257)$ (4.42%)5401 Insurance‐retirees 115,156 ‐ ‐ ‐ ‐ 115,156 106,044 9,112 8.59%5450 Overtime 2,637 74,999 660 13,424 ‐ 91,719 90,390 1,329 1.47%5451 Double time ‐ 30,927 ‐ 6,634 ‐ 37,561 42,314 (4,754) (11.23%)5500 Payroll taxes 61,296 108,176 5,879 24,922 4,740 205,014 221,102 (16,088) (7.28%)5560 Pension contribution 67,339 83,045 3,790 16,592 3,798 174,563 170,650 3,913 2.29%5561 Pension contribution Graa Pebsco 10,500 ‐ ‐ ‐ 10,500 8,000 2,500 31.25%5600 Salaries/wages 823,395 1,210,938 69,300 280,961 58,427 2,443,021 2,388,675 54,346 2.28%5605 Outside labor ‐ ‐ ‐ 10,000 10,000 26,000 (16,000) 100.00%5610 Pager pay ‐ 15,600 ‐ ‐ ‐ 15,600 5,200 10,400 200.00%5700 Tool allowance ‐ 1,800 ‐ ‐ ‐ 1,800 1,800 ‐ 0.00%5750 Training 5,750 7,850 1,200 1,000 ‐ 15,800 15,350 450 2.93%5800 Workers compensation insurance 5,352 145,470 450 23,217 380 174,870 181,706 (6,836) (3.76%)5900 Uniforms ‐ 6,089 ‐ 1,144 ‐ 7,233 7,805 (572) (7.33%)5901 Uniforms‐lost,damaged,replaced ‐ 200 ‐ 100 ‐ 300 300 ‐ 0.00%5902 Uniforms‐shoe allowance ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.00%5903 Uniforms‐protective clothing ‐ 3,562 ‐ 600 ‐ 4,162 8,625 (4,463) (51.74%)5904 Uniforms‐eyeglasses ‐ ‐ ‐ ‐ ‐ ‐ 0.00% TOTAL PERSONNEL SERVICES 1,199,014 1,879,584 92,312 417,010 92,471 3,680,391 3,664,310 16,081 0.44%

6021 Ad‐Television ‐ ‐ 150,000 ‐ 7,500 157,500 135,900 21,600 15.89%6022 Ad‐Radio ‐ ‐ 75,000 ‐ 7,500 82,500 53,935 28,565 52.96%6023 Ad‐Billboards ‐ ‐ 37,000 ‐ ‐ 37,000 62,810 (25,810) (41.09%)6024 Ad‐Direct ‐ ‐ ‐ ‐ ‐ ‐ 10,320 (10,320) (100.00%)6025 Ad‐Promotions ‐ ‐ 17,000 ‐ 500 17,500 16,700 800 4.79%6026 Ad‐Print ‐ ‐ 172,000 ‐ 14,337 186,337 139,535 46,802 33.54%6050 Audit 36,100 ‐ ‐ ‐ ‐ 36,100 35,400 700 1.98%6040 Airfield repair ‐ 7,500 ‐ ‐ ‐ 7,500 7,500 ‐ 0.00%6100 Building repair 2,000 34,000 ‐ 4,000 ‐ 40,000 32,700 7,300 22.32%6121 Milesahead program ‐ ‐ 150,000 ‐ ‐ 150,000 100,000 50,000 50.00%6140 Conferences & meetings 17,765 3,350 5,100 8,800 2,500 37,515 34,630 2,885 8.33%6150 Revenue guarantee ‐ ‐ ‐ ‐ ‐ ‐ 475,204 (475,204) 0.00%6160 Consulting services 85,470 ‐ 72,500 ‐ 500 158,470 146,220 12,250 8.38%6161 ARFF contractual services ‐ 803,820 ‐ ‐ ‐ 803,820 776,638 27,182 3.50%6162 ARFF training ‐ 25,000 ‐ ‐ ‐ 25,000 25,000 ‐ 0.00%6165 Airshow contractual ‐ ‐ 131,000 131,000 229,500 (98,500) (42.92%)6170 Airshow lodging 34,000 34,000 20,500 13,500 100.00%6175 Airshow rental services 46,925 46,925 50,752 (3,827) 100.00%6185 Airshow food and beverages 31,500 31,500 91,500 (60,000) 100.00%6190 Airshow transportation 28,000 28,000 40,500 (12,500) 100.00%6201 Energy‐electric 36,000 148,000 ‐ 164,000 ‐ 348,000 330,000 18,000 5.45%6202 Energy‐natural gas 22,000 52,000 ‐ 27,000 ‐ 101,000 86,000 15,000 17.44%6300 Engineering services 40,000 ‐ ‐ ‐ 1,000 41,000 41,000 ‐ 0.00%6321 Equip maint‐repairs/services 1,000 19,000 ‐ 12,450 ‐ 32,450 38,960 (6,510) (16.71%)6322 Equip maint‐service contracts 17,300 130,000 ‐ 46,280 2,500 196,080 175,000 21,080 12.05%6350 Equipment rental 8,900 18,500 ‐ 4,000 7,300 38,700 41,700 (3,000) (7.19%)6400 Insurance 219,000 ‐ ‐ ‐ 12,000 231,000 233,500 (2,500) (1.07%)6402 Insurance deductible 10,000 ‐ ‐ ‐ ‐ 10,000 10,000 ‐ 0.00%6410 Landscaping ‐ 5,000 ‐ 4,500 ‐ 9,500 16,000 (6,500) (40.63%)6440 Legal notices 9,350 ‐ ‐ ‐ ‐ 9,350 9,350 ‐ 0.00%6451 Legal services‐general 50,000 ‐ ‐ ‐ ‐ 50,000 50,000 ‐ 0.00%6452 Legal services‐personnel 5,000 ‐ ‐ ‐ ‐ 5,000 5,000 ‐ 0.00%6453 Legal services‐other 2,000 ‐ ‐ ‐ ‐ 2,000 2,000 ‐ 0.00%6480 Licenses,titles & inspections ‐ 11,500 ‐ ‐ 254 11,754 3,956 7,798 197.12%6510 Medical exams 250 1,000 ‐ 250 ‐ 1,500 1,500 ‐ 0.00%6540 Membership dues 39,045 1,245 625 1,000 ‐ 41,915 55,245 (13,330) (24.13%)6600 Other 5,000 2,000 1,000 2,000 4,500 14,500 14,500 ‐ 0.00%6640 Payment services 8,100 ‐ ‐ ‐ ‐ 8,100 8,100 ‐ 0.00%6670 Permits & testing ‐ 1,000 ‐ ‐ ‐ 1,000 1,000 ‐ 0.00%6700 Postage 8,600 ‐ 400 3,000 ‐ 12,000 10,000 2,000 20.00%6730 Printing 4,500 ‐ 26,900 ‐ 16,650 48,050 55,970 (7,920) (14.15%)6751 Telephone‐cellular 4,200 14,400 ‐ 2,880 850 22,330 19,000 3,330 17.53%6752 Telephone‐local 29,916 19,400 312 8,106 500 58,234 63,714 (5,480) (8.60%)6753 Telephone‐long distance 3,700 1,700 300 200 ‐ 5,900 4,507 1,393 30.91%6800 Travel & transportation 28,920 4,600 3,750 2,500 2,150 41,920 42,825 (905) (2.11%)6800 Customer care/customer service ‐ ‐ ‐ 5,000 5,000 5,000 ‐ 100.00%6850 Utilities 1,500 7,000 ‐ 5,900 ‐ 14,400 11,000 3,400 30.91%6900 Vehicle maintenance 500 18,000 ‐ ‐ ‐ 18,500 18,500 ‐ 0.00%6950 Waste removal ‐ 9,210 ‐ 65,628 1,000 75,838 17,460 58,378 334.35% TOTAL CONTRACTUAL SERVICES 696,116 1,337,225 711,887 367,494 352,966 3,465,688 3,856,031 (390,343) (10.12%)

PERSONNEL SERVICES

CONTRACTUAL SERVICES


36

Operating Expenses Combined Departmental BudgetFinance & Operations & Air Serv Terminal AirFest BUDGET BUDGET Dollar Percentage Admin. Facilities Marketing Services FYE10 FYE09 Change ChangeCODE/LINE ITEM, All Departments

7100 Building repair 1,000 13,400 ‐ 33,700 ‐ 48,100 46,700 1,400 3.00%7140 Conferences & meetings 10,000 3,700 6,500 6,910 ‐ 27,110 28,110 (1,000) (3.56%)7200 Equipment 11,500 20,100 1,000 11,340 ‐ 43,940 48,615 (4,675) (9.62%)7240 Fence/gate ‐ 2,600 ‐ ‐ ‐ 2,600 2,600 ‐ 0.00%7271 Fuel‐diesel ‐ 57,300 ‐ ‐ 1,500 58,800 58,800 ‐ 0.00%7272 Fuel‐unleaded ‐ 43,000 ‐ ‐ 250 43,250 43,100 150 0.35%7273 Fuel‐other ‐ 1,500 ‐ ‐ 21,000 22,500 34,500 (12,000) (34.78%)7300 Landscaping ‐ 4,000 ‐ 4,000 1,500 9,500 14,100 (4,600) (32.62%)7380 Other 1,000 1,000 1,000 2,000 ‐ 5,000 5,500 (500) (9.09%)7400 Pavement marking ‐ 42,000 ‐ ‐ ‐ 42,000 25,000 17,000 68.00%7440 Pavement repair ‐ 16,000 ‐ ‐ ‐ 16,000 12,000 4,000 33.33%7500 Raw materials ‐ 2,200 ‐ ‐ ‐ 2,200 2,200 ‐ 0.00%7501 Raw materials‐deicing only ‐ 589,640 ‐ ‐ ‐ 589,640 235,990 353,650 149.86%7540 Signage ‐ 20,000 ‐ 9,000 5,000 34,000 34,200 (200) (0.58%)7580 Software 4,500 3,000 ‐ 4,625 ‐ 12,125 19,625 (7,500) (38.22%)7600 Subscriptions 7,175 1,000 720 150 ‐ 9,045 7,995 1,050 13.13%7660 Supplies‐janitorial ‐ 4,600 ‐ 14,970 1,000 20,570 19,890 680 3.42%7690 Supplies‐lighting(airfield) ‐ 85,000 ‐ ‐ ‐ 85,000 95,000 (10,000) (10.53%)7720 Supplies‐mechanical (airfield) ‐ 86,000 ‐ ‐ ‐ 86,000 42,300 43,700 103.31%7750 Supplies‐office 11,500 2,300 750 2,000 2,000 18,550 17,800 750 4.21%7780 Supplies‐other ‐ 2,500 ‐ 9,000 850 12,350 21,600 (9,250) (42.82%)7782 Supplies‐hardware ‐ 7,000 ‐ ‐ 1,200 8,200 8,200 ‐ 0.00%7796 Supplies‐promotional ‐ ‐ 17,000 ‐ 11,500 28,500 39,050 (10,550) (27.02%)7810 Supplies‐specialty ‐ 12,000 ‐ ‐ ‐ 12,000 10,000 2,000 20.00%7830 Supplies‐steel stock ‐ 1,500 ‐ ‐ ‐ 1,500 1,500 ‐ 0.00%7850 Supplies‐storm sewer/drain ‐ 500 ‐ ‐ ‐ 500 500 ‐ 0.00%7880 Supplies‐welding ‐ 1,000 ‐ ‐ ‐ 1,000 1,000 ‐ 0.00%7901 Maint‐licensed vehicles ‐ 12,350 ‐ ‐ ‐ 12,350 12,350 ‐ 0.00%7902 Maint‐equipment ‐ 89,000 ‐ ‐ 2,000 91,000 99,700 (8,700) (8.73%) TOTAL COMMODITIES 46,675 1,124,190 26,970 97,695 47,800 1,343,330 987,925 355,405 35.97%

8400 Glycol retention treatment facility ‐ 114,700 ‐ ‐ ‐ 114,700 114,700 ‐ 0.00%8410 Landfill environmental costs ‐ 90,000 ‐ ‐ ‐ 90,000 225,000 (135,000) (60.00%)8415 Property Taxes ‐ 65,000 ‐ ‐ ‐ 65,000 75,000 (10,000) (13.33%) TOTAL OTHER ‐ 269,700 ‐ ‐ ‐ 269,700 414,700 (145,000) (34.97%)

FISCAL YEAR TOTALS 1,941,805$ 4,610,699$ 831,169$ 882,199$ 493,237$ 8,759,109$ 8,922,966$ (163,857)$ (1.84%)

OTHER

COMMODITIES


37

Finance and Administration Department Summary The Finance and Administration Department is responsible for the administration, financial management of policies and procedures of the Greater Rockford Airport Authority. The department also includes the Executive Director and his strategic goals and economic development planning. The functions of the department which is lead by the Deputy Director include financial planning and analysis, human resource development, risk management, property development and grant administration. All finance functions are conducted “in house,” this includes fund collection and disbursement, investment management and grant management. The Department also 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. It was evident in FYE2009 that there was need to concentrate efforts to grow the air cargo with the new International Cargo apron in the completion stages. A Deputy Director of Cargo Development was hired to investigate, research and negotiation with cargo airlines to establish operations at RFD. In the prior year there were two trips to China to meet and discuss with the various airlines. This is continuing in the FYE2010 budget. 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.

Engage consultants to assist in development of air service Develop and present air passenger business market as opportunities arise Develop and present business market plans to air cargo carriers as opportunities arise. 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 needs while maximizing investment opportunities.

Research and investigate other revenue sources for Authority included 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.


38

Finance and Administration Department BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGETFYE05 FYE06 FYE07 FYE08 FYE09 FYE09 FYE10

PERSONNEL SERVICES5400 Insurance 77,936$ 82,040$ 94,562$ 85,996$ 90,790$ 96,840$ 107,589$ 5401 Insurance‐retirees 105,703 110,281 105,203 103,180 106,044 102,464 115,156 5450 Overtime 223 596 2,760 6,549 2,433 4,072 2,637 5500 Payroll taxes 56,929 78,129 97,764 75,746 55,800 66,037 61,296 5560 Pension contribution 66,661 50,561 52,091 53,895 58,464 55,695 67,339 5561 Pension contribution GRAA Pebsco 5,758 5,758 8,910 10,561 8,000 10,403 10,500 5600 Salaries/wages 570,850 594,647 700,430 695,437 691,086 716,228 823,395 5605 Outside labor 1,326 12,710 5,307 ‐ ‐ 6,971 ‐ 5750 Training 3,739 1,989 450 2,850 5,000 5,840 5,750 5800 Workers compensation insurance 5,027 4,194 4,046 4,519 4,139 3,658 5,352 TOTAL PERSONNEL SERVICES 894,152 940,904 1,071,524 1,038,733 1,021,756 1,068,208 1,199,014

CONTRACTUAL SERVICES6050 Audit 18,894 20,484 28,665 27,939 35,400 35,223 36,100 6100 Building repair 1,760 ‐ 1,327 ‐ 1,700 ‐ 2,000 6140 Conferences & meetings 11,877 17,981 77,509 12,593 16,380 6,511 17,765 6160 Consulting services 23,216 101,652 76,805 85,454 70,220 79,472 85,470 6165 Airshow contractual ‐ performers and host 530,614 241,796 ‐ ‐ ‐ ‐ 6201 Energy‐electric 18,906 32,607 26,143 30,336 30,000 37,941 36,000 6202 Energy‐natural gas 12,563 11,763 18,720 19,911 17,000 21,864 22,000 6300 Engineering services 37,623 36,305 63,274 80,637 40,000 58,032 40,000 6321 Equip.maint‐repairs/services 2,553 ‐ 1,725 105 1,000 360 1,000 6322 Equip.maint‐service contracts 7,802 9,215 9,013 11,571 19,000 16,785 17,300 6350 Equipment rental 6,459 15,313 59,390 10,637 14,900 10,352 8,900 6400 Insurance 242,599 243,945 238,473 216,091 219,000 221,178 219,000 6402 Insurance deductible 2,632 9,326 1,000 1,548 10,000 9,345 10,000 6440 Legal notices 5,314 3,450 11,528 8,646 9,350 6,486 9,350 6451 Legal services‐general 46,335 36,581 39,248 57,280 50,000 99,056 50,000 6452 Legal services‐personnel 29,154 35,971 6,735 3,334 5,000 6,636 5,000 6453 Legal services‐other 3,300 3,049 2,100 1,801 2,000 2,160 2,000 6480 Licenses, titles & inspections ‐ Airshow ‐ ‐ 105 188 ‐ 408 ‐ 6510 Medical exams 352 210 534 45 250 293 250 6540 Membership dues 37,621 24,159 17,171 31,277 52,870 9,678 39,045 6600 Other 9,002 10,218 16,760 3,420 5,000 4,092 5,000 6640 Payment services 8,087 7,960 9,166 7,940 8,100 8,847 8,100 6700 Postage 5,296 5,347 8,664 9,152 8,600 9,071 8,600 6730 Printing 5,950 6,152 34,195 5,681 5,700 582 4,500 6751 Telephone‐cellular 3,599 3,642 3,637 3,259 2,500 3,819 4,200 6752 Telephone‐local 25,350 32,552 34,084 32,955 33,916 28,118 29,916 6753 Telephone‐long distance 5,805 4,365 4,221 3,445 3,000 3,678 3,700 6800 Travel & transportation 17,744 26,670 88,629 16,137 26,275 20,869 28,920 6850 Utilities 684 892 990 1,453 1,500 1,387 1,500 6900 Vehicle maintenance ‐ ‐ 80 ‐ 500 ‐ 500 TOTAL CONTRACTUAL SERVICES 590,476 1,230,423 1,121,686 682,835 689,161 702,242 696,116

COMMODITIES7100 Building repair ‐ ‐ ‐ ‐ 1,000 ‐ 1,000 7140 Conferences & meetings 7,767 5,518 9,618 6,108 10,000 7,690 10,000 7200 Equipment 3,289 16,436 10,548 10,692 11,500 7,297 11,500 7380 Other 2,100 25 1,293 1,656 1,000 597 1,000 7540 Signage ‐ Airshow ‐ ‐ 12,679 ‐ ‐ ‐ ‐ 7580 Software 5,044 22,754 14,278 245 10,000 2,053 4,500 7600 Subscriptions 6,308 8,423 5,047 6,808 6,500 3,243 7,175 7750 Supplies‐office 16,835 21,809 14,355 14,381 12,000 11,551 11,500 7780 Supplies‐other ‐ Airshow ‐ ‐ 65,426 ‐ ‐ ‐ ‐ 7796 Supplies‐promotional ‐ Airshow ‐ ‐ 13,179 ‐ ‐ ‐ ‐ TOTAL COMMODITIES 41,343 74,965 146,423 39,890 52,000 32,433 46,675

OTHER8350 Marketing 3,781 2,076 ‐ ‐ ‐ ‐ ‐

DEPARTMENT TOTAL 1,529,752$ 2,248,368$ 2,339,633$ 1,761,458$ 1,762,917$ 1,802,883$ 1,941,805$

CODE/LINE ITEM, Department 04


39

Finance and Administration Budget Justifications

PERSONNEL SERVICES5400 Insurance

Health, dental and life insurance costs for employees and eligible retirees.Health insuranceThe 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.The annual cost for the Authority at 80% is as follows by each type of coverage:Employee = $4,988.58/$5,169.98Employee + Spouse = $9,883.55/$10,051.35Employee + Children = $9,431.54Family = $13,976.50Medicare Supp. D = $2,469.84Dental insuranceMonthly administration fee of $5.20 per employee and eligible retiree plus estimated actual costs. The dental insurance is fully self funded.Life insuranceLife and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life at $.22/$1000 and AD&D at $.05/$1000. Eligible retireees are also provided with a $2,500 life insurance benefit.Employees:Health 96,508 Dental 5,453 Life 5,628 Total employee insurance 107,589$

5401 Retiree insuranceHealth 105,471 Dental 9,559 Life 126 Total retiree insurance 115,156$

5450 OvertimeEstimated 150 hours of overtime for hourly employees. 2,637$

5500 Payroll taxesFICA ‐ 6.2% of base wage up to $106,800 45,938 Medicare ‐ 1.45% of base wage 12,105 State unemployment ‐ 2.2% of the first $12,300 3,254 Total payroll taxes 61,296$

5560 Pension contributionIMRF pension fund ‐ 6.50% 67,339$

5561 Pension contribution GRAA PebscoPebsco contribution for Executive Director 10,500$

5600 SalariesCommissioner stipends ‐ Seven commissioners 12,600


40


Salaries ‐ 11 full time employees 810,795 Total salaries 823,395$

5750 TrainingContinuing professional education (CPE's) 500 Human resources & supervision 500 FTZ training 2,500 Procurement/finance 750 College courses 1,500 Total training 5,750$

5800 Workers compensation insurance 5,352$

CONTRACTUAL SERVICES6050 Audit

Independent auditor 20,000 GFOA award applications ‐ Financial reporting and budget 700 Grant audits 12,700 Report production costs 2,700 Total audit 36,100$

6100 Building repair Structural repair of administration building. 2,000$

6140 Conferences & meetings AAAE annual conference (2) 2,130 AAAE Board of Directors and Board of Examiners (4) 1,500 AAAE reimbursement (1,500) Council of 100, annual meeting 450 Chamber of Commerce, State of the City Luncheon 650 FAA aviation forecast conference 340 Great Lakes AAAE conference 1,195 FTZ conferences & meetings 4,000 Other conferences ($300 ea) 1,500 Chamber economic summit conference 1,000 Other meetings‐ Executive Director/Cargo Director 5,000 Business lunches/dinners ($125/mo) 1,500 Total conferences & meetings 17,765$

6160 Consulting services Appraisal services 7,000 Information technology consultant ‐ August Consulting 15,000 Air service development consultants 10,000 Accounting software consultant 3,000 RFD Drop Station ‐ start up and guarantee 30,000 Financial analyst 3,000 Flexstar 125 ‐ $60/mo 720 FTZ consultant 16,750 Total consulting services 85,470$


41


6201 Energy‐electric (60 Airport Dr.) 36,000$

6202 Energy‐natural gas (60 Airport Dr.) 22,000$

6300 Engineering services Cost for professional engineering services rendered by outside engineering firms.Crawford, Murphy & Tilly, Inc. 37,000 Other 3,000 Total engineering services 40,000$

6321 Equip maint‐repairs/services 1,000$

6322 Equip maint‐service contracts Software support ‐ Best FAS 1,200 Software support ‐ MAS90 2,700 Software support ‐ property management 1,400 Copy machine ‐ usage 5,000 Telephone system 7,000 Total equipment maintenance‐service contracts 17,300$

6350 Equipment rental Postage/scale meter lease ($675/qtr) 2,700 Copy machine ($1,000/mo) 6,000 Other 200 Total equipment rental 8,900$

6400 Insurance Aviation liability 55,000 Automotive 28,000 Property 76,000 Public officials liability 60,000 Total insurance 219,000$

6402 Insurance deductible 10,000$

6440 Legal notices

Publication costs for public notices, including bid documents, Treasurer's Report, personnel notices.Annual receipts & disbursement report 1,750 Bid documents (est $500/ad‐approx 15) 7,500 Public meeting notices 100 Total legal notices 9,350$

6451 Legal services‐general 50,000$

6452 Legal services‐personnel 5,000$

6453 Legal services‐other 2,000$


42


6510 Medical exams 250$

6540 Membership dues Association of Airport Internal Auditors (AAIA) 125 American Association of Airport Executives (AAAE) (3) 750 AAAE Regulatory Membership 1,000 AAAE Legislative Membership 750 Airport Purchasing Group (APG) 50 American Certified Professional Accountants Society (AICPA) 200 Chamber of Commerce (Belvidere, Freeport, Loves Park‐Machesney Park, & Rockford) ‐ vouch 1,500 EDC ‐ Rockforward program ‐ voucher trade for $5,000 25,000 Employers Association 450 Government Finance Officers Assoc (GFOA) ‐ 1 150 Greater Rockford Transportation Coalition (GRTC) ‐ voucher trade 200 Growth Dimensions (Boone Co) ‐ voucher trade 1,000 Illinois Certified Professional Accountants Society (ICPA) 260 McHenry County Economic Development Corp ‐ voucher trade 500 National Institute of Governmental Purchasing (NIGP) 300 National Association of Foreign Trade Zones (NAFTZ) 1,400 Prairie Shield Program 2,500 IACAC, TIACA,CNS, Other cargo 2,025 SLWTA 100 Other 550 Sam's club 185 Wells Fargo BusinessMiles fee 50 Total membership dues 39,045$

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

6640 Payment services Bi‐weekly payroll processing & quarterly reports ($500/mo est) 8,000 Other 100 Total payment services 8,100$

6700 Postage Overnight mail 2,500 Postage, metered (approx $500/mo) 6,000 Other 100 Total postage 8,600$

6730 Printing Checks, statements, HR forms 1,000 Enlarging, duplicating, binding 500 Photographs 500 Business cards 2,000 Miscellaneous 500 Total printing 4,500$

6751 Telephone‐cellular 4,200$


43


6752 Telephone‐localLocal carrier 13,500 Remote internet connection 1,700 Answering service 8,000 Outlook exchange hosting ‐ 11 boxes 1,716 Internet connection (T1 connection) 5,000 Total telephone ‐ local 29,916$

6753 Telephone‐long distance 3,700$

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

Amounts include an estimate of $600/trip airfare, lodging of $170/night and M&I of $55/day.Executive DirectorAirline recruitment (4t) (2n) 4,200 AAAE Board of Directors (4t) (4n) 6,000 AAAE Chapter (2t) (3n) 2,550 Other (3t) (2n) 3,150 AAAE Reimbursement (1,500) Deputy Director of Admin/FinAnnual conf, (4n) 1,555 Other (2n) 800 Other staffOther (5t) (4n) 6,665 Other (4t) (2n) 3,500 Other 2,000 Total travel & transportation 28,920$

6850 UtilitiesWater 1,000 Sewer 500 Total utilities 1,500$

6900 Vehicle maintenance One departmental vehicle 500 Total vehicle maintenance 500$

COMMODITIES7100 Building repair

Materials for administration and operations building. 1,000$

7140 Conferences & meetingsIn‐house lunch/meetings 2,000 Bottled water 1,000 Employee events 5,000 Meeting supplies 2,000 Total conferences & meetings 10,000$

7200 EquipmentComputers ‐ 3 ‐ replacements 6,500


44


Other 5,000 Total equipment 11,500$

7380 Other ‐ Commodities not itemized in other accounts. 1,000$

7580 SoftwarePayroll software 2,000 Other 2,500 Total software 4,500$

7600 SubscriptionsAviation Daily 1,800 BNA ‐ HR Services ‐ website subscription 1,800 Chicago Tribune 250 Digicast email (AAAE) 425 Dish Network 400 Trade & Industry (FTZ) 1,000 Other (includes publications) 500 Rockford Register Star (1) 200 Web site hosting 800 Total subscriptions 7,175$

7750 Supplies‐officeCopier & printer paper/fax cartridges 4,000 Office supplies 5,000 Stationery/envelopes for stock 2,000 Binding machine 500 Total supplies‐office 11,500$


45

Operations and Facility Department Summary

The Operations and Facilities Department is a multifunctional department responsible both for the safe operation of the airfield and airport as well as maintaining all airport property, buildings, vehicles and equipment. This includes monitoring and ensuring compliance with all FAA, TSA, Federal, State and Local regulatory requirements; and that all air carriers, general aviation aircraft and airport tenants operate in a safe manner; administrating the airport’s badging, background check and security systems; wildlife control, inspection and oversight of all fueling operations and numerous other responsibilities as defined by FAR139. The department is also responsible for maintaining almost 10,000,000 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. The department is also responsible for maintaining 13 buildings and properties owned by the airport authority as well as a large fleet of vehicles and equipment; directing and coordinating construction projects; the oversight of the glycol retention/treatment facility. Goals and Objectives The overall goal of the Operations and Facilities Department is to insure that the Chicago Rockford International Airport’s operation, airfield infrastructure and properties are safe and secure for all those using the airport. Further the department will adhere to the highest level of customer service and compliance with Part 139 of the FAA regulations, consistent with operating a world class commercial airport.

Communicate regularly with tenants and regulatory agencies on a regular basis. Continue to enhance and expand all ongoing training in regards to safety, overall airport operations, tenant operations and FAA and TSA regulatory compliance.

Make available increased, outside training opportunities for key department personnel. Review, enhance and update all RFD Standard Operating Procedures (SOPS). Schedule fact findings visits to other airports to study “best practices”. Complete annual FAA certification process with no findings Update and review snow clearance procedures to insure safe operation with no airport closures.

Develop and test program designed to study recovery of de‐icing chemicals for possible re‐use.

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

Snow removal planning and coordination with no airport closings Investigate and evaluate opportunities to save energy costs in all major airport facilities. Monitor Certification Manual and update as necessary.


46

Operations and Facilities Department Budget

ACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGETFYE05 FYE06 FYE07 FYE08 FYE09 FYE09 FYE10

5400 Insurance 131,164$ 145,954$ 191,544$ 188,484$ 218,921$ 176,968$ 190,928$ 5450 Overtime 74,421 61,954 56,534 106,309 74,718 104,621 74,999 5451 Double time 23,704 48,200 30,326 46,302 33,860 42,339 30,927 5500 Payroll taxes 59,840 67,813 85,453 85,403 126,633 89,821 108,176 5560 Pension contribution 82,021 64,556 73,589 79,592 88,855 83,158 83,045 5600 Salaries/wages 720,920 820,956 1,022,428 1,006,542 1,307,408 1,037,815 1,210,938 5605 Outside labor 22,493 103,441 37,205 ‐ ‐ 453 ‐ 5610 Pager pay 2,700 2,600 5,350 5,200 5,200 5,280 15,600 5700 Tool allowance 1,800 1,800 1,800 1,800 1,800 1,800 1,800 5750 Training 1,600 770 ‐ 1,281 7,850 4,308 7,850 5800 Workers compensation insurance 110,472 99,461 96,065 136,793 152,538 134,787 145,470 5900 Uniforms 4,026 4,034 5,332 6,240 6,661 6,800 6,089 5901 Uniforms‐lost,damaged,replaced ‐ 37 232 ‐ 200 ‐ 200 5902 Uniforms‐shoe allowance 647 316 604 1,258 ‐ 715 ‐ 5903 Uniforms‐other 1,157 1,112 1,526 649 7,125 2,077 3,562 5904 Uniforms‐eyeglasses 300 ‐ 249 555 ‐ 178 ‐

TOTAL PERSONNEL SERVICES 1,237,264 1,423,004 1,608,235 1,666,408 2,031,769 1,691,121 1,879,584

6040 Airfield repair 2,838 8,423 ‐ 3,552 7,500 ‐ 7,500 6100 Building repair 14,075 20,418 29,425 27,236 29,000 44,785 34,000 6140 Conferences & meetings 1,513 1,498 2,404 2,035 3,350 58 3,350 6161 ARFF contractual services 650,004 725,000 750,375 776,638 776,638 803,820 6162 ARFF training 81 2,205 28,276 25,000 7,284 25,000 6201 Energy‐electric 200,445 213,322 270,234 127,860 130,000 156,796 148,000 6202 Energy‐natural gas 65,007 92,746 62,604 52,162 47,000 55,650 52,000 6320 Equipment maintenance 1,497 1,215 ‐ ‐ ‐ ‐ ‐ 6321 Equip maint‐repairs/services 32,840 29,367 35,405 16,067 29,510 15,215 19,000 6322 Equip maint‐service contracts 7,417 67,795 75,286 117,794 127,400 122,885 130,000 6350 Equipment rental 18,283 20,190 14,923 11,079 14,500 28,090 18,500 6410 Landscaping 585 2,180 5,297 2,695 4,000 5,900 5,000 6480 Licenses, titles & inspections 2,478 2,698 1,213 867 3,500 832 11,500 6510 Medical exams 722 408 2,274 1,279 1,000 1,428 1,000 6540 Membership dues 225 350 460 260 750 840 1,245 6600 Other 52 2,167 12,711 8,071 2,000 9,326 2,000 6670 Permits & testing 500 150 675 ‐ 1,000 837 1,000 6751 Telephone‐cellular 9,442 12,291 13,319 12,473 14,000 16,180 14,400 6752 Telephone‐local 7,860 7,064 15,771 16,252 19,100 15,816 19,400 6753 Telephone‐long distance 242 4 2,279 1,469 1,000 1,812 1,700 6800 Travel & transportation 7,121 1,676 7,039 2,409 4,200 2,425 4,600 6850 Utilities 11,658 14,203 5,780 4,974 5,500 10,670 7,000 6900 Vehicle maintenance 982 3,131 7,174 9,585 18,000 17,102 18,000 6950 Waste removal 14,645 13,559 12,969 11,590 12,060 10,920 9,210

TOTAL CONTRACTUAL SERVICES 400,428 1,164,938 1,304,446 1,208,360 1,276,008 1,301,489 1,337,225

7100 Building repair 51,971 44,488 39,179 12,412 17,000 16,119 13,400 7140 Conferences & meetings 1,822 2,754 4,206 6,229 3,700 4,015 3,700 7200 Equipment 10,107 17,714 16,246 13,726 20,500 23,207 20,100 7240 Fence/gate 6,212 2,300 448 820 2,600 373 2,600 7271 Fuel‐diesel 31,849 33,274 60,490 113,957 57,300 85,249 57,300 7272 Fuel‐unleaded 22,240 30,453 27,870 47,493 43,000 46,685 43,000 7273 Fuel‐other 393 526 462 402 500 1,325 1,500 7300 Landscaping 9,427 6,164 15,060 3,386 6,600 2,313 4,000 7380 Other 348 240 397 8 1,500 234 1,000 7400 Pavement marking 17,772 13,389 24,401 27,232 25,000 63,390 42,000 7440 Pavement repair 707 1,705 4,436 2,656 12,000 12,859 16,000 7500 Raw materials 1,361 ‐ 1,231 575 2,200 143 2,200 7501 Raw materials‐deicing only 206,009 281,093 258,752 905,439 235,990 684,220 589,640 7540 Signage 5,631 1,866 8,935 8,796 15,200 16,520 20,000 7580 Software 179 625 14,099 2,904 5,000 2,916 3,000 7600 Subscriptions 248 630 826 2,067 475 866 1,000



COMMODITIES

PERSONNEL SERVICES


47

Operations and Facilities Department Budget

ACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGETFYE05 FYE06 FYE07 FYE08 FYE09 FYE09 FYE10CODE/LINE ITEM, Department 05

7660 Supplies‐janitorial 18,656 16,855 15,413 4,134 5,680 6,441 4,600 7690 Supplies‐lighting/electrical (airside) 81,035 108,342 60,972 86,559 95,000 83,944 85,000 7720 Supplies‐snow removal wafers, poly‐stee 22,486 42,830 42,774 41,270 42,300 92,392 86,000 7750 Supplies‐office ‐ 2,813 1,791 1,962 2,300 2,226 2,300 7780 Supplies‐other 4,900 8,637 8,759 2,297 2,500 2,622 2,500 7782 Supplies‐hardware 9,274 7,326 7,084 5,720 7,000 7,740 7,000 7810 Supplies‐specialty ‐ ‐ 5,315 7,352 10,000 11,263 12,000 7830 Supplies‐steel stock 1,557 482 ‐ 994 1,500 1,334 1,500 7850 Supplies‐storm sewer/drain ‐ ‐ 141 ‐ 500 516 500 7880 Supplies‐welding 468 930 1,114 1,325 1,000 ‐ 1,000 7900 Vehicle maintenance 25,592 6,644 ‐ ‐ ‐ ‐ ‐ 7901 Maint‐licensed vehicles 10,015 15,299 13,444 12,108 12,350 13,927 12,350 7902 Maint‐equipment 33,926 55,544 107,206 89,588 97,700 87,291 89,000

TOTAL COMMODITIES 574,181 702,922 741,049 1,401,411 726,395 1,270,132 1,124,190

OTHER8400 Glycol retention treatment facility 77,731 92,674 58,673 83,730 114,700 130,141 114,700 8410 Landfill environmental costs 145,508 103,613 55,512 88,746 225,000 84,108 90,000 8415 Property taxes 57,902 80,045 78,453 90,312 75,000 72,261 65,000

TOTAL OTHER 281,141 276,332 192,638 262,788 414,700 286,510 269,700

DEPARTMENT TOTAL 2,493,014$ 3,567,196$ 3,846,368$ 4,538,967$ 4,448,872$ 4,549,252$ 4,610,699$


48

Operations and Facilities Department Justifications

5400 InsuranceHealth insuranceThe Authority is partially self funded and estimates for this partial funding are incorporated into the annual costs noted below.The annual cost for the Authority at 80% is as follows by each type of coverage:Employee = $4,988.58/$5,169.98Employee + Spouse = $9,883.55/$10,051.35Employee + Children = $9,431.54Family = $13,976.50Dental insuranceMonthly administration fee of $5.20 per employee and the mothly est cost. The dental insurance is self funded.Life insuranceThe benefit is 2.5 times an employee's base salary with life at $.24/$1000 and AD&D at $.05/$1000.Health 169,704 Dental 12,036 Life 9,188 Total employee insurance 190,928$

5450 OvertimeEstimated 2,230 hours of overtime for hourly employees. 74,999$

5451 Double timeEstimated 680 hours of overtime for hourly employees. 30,927$



5600 SalariesIncludes 22 full time employees and 2 interns 1,210,938$

5610 Pager pay (3ee @ $100/wk) 15,600$

5700 Tool allowance (3ee @ $50/mo) 1,800$

5750 TrainingOshkosh (OTC/DDEC) (1ee) 1,200 Honeywell (Regulators/NAVAIDS) (1ee) 2,500 Rock Valley (job related ‐ Tech I, II, III) (4 @ 250) 1,000 Environmental (2ee) 1,000 Airport security coordinator 850Security system training 1,300Total training 7,850$


PERSONNEL SERVICES


49

Operations and Facilities Department Justifications5900 Uniforms

17ee @ $5.50/week, 4ee @ $5.90/week 6,089$

5901 Uniforms ‐ lost/damage/replacement 200$

5903 Uniforms ‐ protective clothingClothing Allowance 3,562 Total other uniforms 3,562$

6040 Airfield repairContractual services for repairs to lighting system, pavement surfaces and plumbing sytems. 7,500$

6100 Building repairContractual service costs for the repair or modification to various airport owned and maintained buildings including pest control.Overhead door repairs 3,000 Automatic door repairs (Terminal vestibules) 2,000 Pest control 4,100 Rug runners/terminal entrance carpet 4,000 Bldg security (Term, Prof, Ops) Fire/ADT/107.14 4,000 Sewer/drainage jetting and pumping 6,700 Other 10,200 Total building repair 34,000$

6140 Conferences & meetings 3,350$

6161 ARFF contractual servicesContract with the City of Rockford for all ARFF services. 803,820$

6162 ARFF trainingAnnual live burn training, simulator & fuel & related expenses 20,000Training equipment, CDs 1,000ARFF training 1,500Conferences (5n, 2ee) 2,000Other 500Total ARFF training 25,000$

6201 Energy‐electric 148,000$

6202 Energy‐natural gas 52,000$

6321 Equip maint‐repairs/services Furnaces/AC units 5,500 Equipment 2,715 Radio repairs 1,000 Scan system for rwy/twy 8,785Other 1,000Total equipment maintenance‐repairs/services 19,000$

6322 Equip maint‐service contracts Copy machine contracts 1,000 SCAN system contract 3,200 Telephone 2,000



50

Operations and Facilities Department JustificationsSupport services 120,000 Other 3,800 Total equipment maintenance‐service contracts 130,000$

6350 Equipment rentalAerial 80' lift for apron lighting (UPS) 9,600 Backhoe 1,000 Compactor 75 Pavement milling machine 800 Core aerator 100 Slit seeder 75 Pup roller 500 Fire hydrant 1" water meter (yearly) 200 Other 6,150 Total equipment rental 18,500$

6410 Landscaping 5,000$

6480 Licenses, titles, inspections & background checks

Rolling stock yearly license plates 400 Trucks/trailers semi‐annual inspections 150 Title services 300 Background checks 10,000 Fire extinguishing test 650 Total license, titles & inspections 11,500$

6510 Medical exams 1,000$

6540 Membership duesAAAE 900Aircraft rescue & fire 125Great lakes chapter AAAE 70Water Environment Federation 150 Total membership dues 1,245$

6600 Other ‐ Contractual costs not itemized in other accounts. 2,000$

6670 Permits & testingBackflow preventors 500 UPS sanitary lift station certification 500 Total permits & testing 1,000$


6752 Telephone‐local Local carrier 15,500 Outlook exchange hosting ‐ 6 boxes 3,900 Total telephone‐local 19,400$

6753 Telephone‐long distance 1,700$

6800 Travel & transportationAirport security coordinator 1,100

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


51

Operations and Facilities Department JustificationsSecurity system training (travel, lodge, meals) 500Other conferences (3ee) 3,000 Total travel & transportation 4,600$

6850 UtilitiesWater (8 meters) 5,100 Sewer (5 meters) 1,900 Total utilities 7,000$

6900 Vehicle maintenanceBrake rotors turnedHydraulic pumps/motors/valves/cylinders rebuiltSpecialty fabrication/machine workFront end alignmentsSplit‐rim tire repairsTotal vehicle maintenance 18,000$

6950 Waste removalBiohazard 660 Debris and extra dumpster pick‐ups 3,500 Environmental 1,000 Used parts/oil/fuel filters 3,800 Other 250 Total waste removal 9,210$

7100 Building repair

Materials used in connection with the maintenance of all Authority owned buildings not covered by tenant leases. 13,400$

7140 Conferences & meetingsWater rental and delivery 1,300 Meals for snow removal crews 1,900 Miscellaneous 500 Total conferences & meetings 3,700$

7200 EquipmentComputer equipment 750 Other (hand tools/rakes/shovels/small power tools) 2,500 Furniture 1,500Tools ‐ hand 3,500Tools ‐ appliances (valves, nozzles) 2,500Hose 4,350Hardware 1,400Battery replacement 700Digital camera 550Wildlife (cracker shells, live shot) 1,100Wildlife (misc) 1,250Total equipment 20,100$

7240 Fence/gate ‐ perimeter fence and gate supplies 2,600$

7271 Fuel‐diesel ‐ 22,500g @ 2.55/g 57,300$

COMMODITIES


52


7272 Fuel‐unleaded ‐ 15,000g @ 2.87/g 43,000$

7273 Fuel‐other 1,500$

7300 Landscaping

Supplies associated with turf maintenance of all Authority grounds not covered in tenant lease. 4,000$

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

7400 Pavement markingHigh visibility marking paint 24,000 Glass sphere beads 15,000 Other 3,000 Total pavement marking 42,000$

7440 Pavement repairIncludes joint sealer, primers, asphalt, stone, backing rod, rubber seals and other materials directly associated with pavement repair. 16,000$

7500 Raw materialsSand 1,700 Gravel 500 Total raw materials 2,200$

7501 Raw materials‐deicing onlyPotassium acetate 275,000 Road salt 9,120 Urea 300,000 Sidewalk ice melt 5,520 Total raw materials‐deicing only 589,640$

7540 SignageRepair & replacement of signage for buildings, infield roadways and airfield directional inserts. 20,000$

7580 Software Includes upgrades to maintenance related software.Total software 3,000$

7600 SubscriptionsRockford Register Star 200 Other 725 West group 75Total subscriptions 1,000$

7660 Supplies‐janitorialRoll towels 1,000 Toilet paper 1,500 Hand towels 600 Cleaners 750 Strippers/waxes 50 Mop heads/brushes/brooms/bags/etc 700 Total supplies‐janitorial 4,600$


53


7690 Supplies‐lighting/electrical (airside)Repair and replacement of existing runway, taxiway, and apron lighting systems. 85,000$

7720 Supplies‐snow removal wafers/poly‐steel bladesSnow removal supplies were recorded as equipment and have been reclassified as supplies because of the disposable nature of the supplies. 86,000$

7750 Supplies‐office ‐ badges etc. 2,300$

7780 Supplies‐otherOther supplies not itemized in other accounts 2,500$

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

7810 Supplies‐specialtyARFF fire suppresant chemical 12,000$

7830 Supplies‐steel stock 1,500$

7850 Supplies‐storm sewer/drainDrain tile, culverts, flares, storm drain covers, plates and other replacement items and emergency repair of airport infrastructure. 500$

7880 Supplies‐welding 1,000$

7901 Maintenance‐licensed vehiclesSupplies for approximately 15 vehicles. 12,350$

7902 Maintenance‐equipment Supplies for repair of Authority equipment. 89,000$

OTHER8400 Glycol retention treatment facility

Electric 70,000 Testing 7,500 Equipment service and repairs 1,000 Chemicals 15,000 Wireless monitoring fees 1,200 Consulting/Engineering/Environmental 17,000 Supplies 1,000 Equipment (non‐capital) 2,000 Total glycol retention treatment facility 114,700$

8410 Landfill and environmental costs ‐ legal and engineering costs 90,000$

8415 Property taxesProperty taxes paid for Authority owned properties including land and improvements. 65,000$


54

Air Service Marketing Department Summary

The Air Service Marketing Department promotes domestic and international air service for scheduled airlines, air charters and air cargo. The plan of the department and the Authority is to develop and grow air service in the following sectors: scheduled airline, air charter, and air cargo; both domestic and international. The Air Service Development department is also responsible for all marketing, communications and public relations of RFD Goals and Objectives To continue to enhance and grow air service at RFD and to effectively market RFD to the region.

Develop a marketing campaign to promote air service at RFD including destinations, airlines and the hassle free customer experience.

Place advertisements and promotions in the regional community that effectively produce results.

Perform regular analysis of RFD activity and airline performance. Maintain a high quality website that is informative and easy to use for the general public and allow for the most effective use of search engine hits to the website.

Enhance and grow the “Milesahead” program to increase members of loyalty rewards programs from currently 52,000 to 75,000 by year’s end.

Increase RFD’s social media presence through facebook, twitter, texting, etc. Create marketing partnerships that produce results and save costs for the airport. Periodically survey passengers and Mileahead members on customer satisfaction in the communication process.


55

Air Service Marketing Department BudgetACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGETFYE05 FYE06 FYE07 FYE08 FYE09 FYE09 FYE10

PERSONNEL SERVICES5400 Insurance 12,030$ 26,747$ 28,377$ 18,421$ 14,551$ 11,798$ 11,033$ 5450 Overtime ‐ ‐ ‐ ‐ 330 2,430 660 5500 Payroll taxes 6,765 11,356 11,095 3,781 6,714 6,569 5,879 5560 Pension contribution 9,366 9,840 9,203 3,659 3,778 3,410 3,790 5600 Salaries/wages 95,775 158,620 144,470 54,999 69,130 73,002 69,300 5750 Training ‐ ‐ ‐ 500 1,500 4,100 1,200 5800 Workers compensation insurance 1,255 1,044 1,010 1,293 422 371 450 TOTAL PERSONNEL SERVICES 125,192 207,607 194,155 82,653 96,425 101,680 92,312

CONTRACTUAL SERVICES6021 Ad‐Television 51,969 161,287 116,076 134,703 128,500 123,746 150,000 6022 Ad‐Radio 252,992 184,028 79,607 39,194 46,800 50,941 75,000 6023 Ad‐Billboards 66,147 65,965 111,617 63,843 58,700 50,142 37,000 6024 Ad‐Direct 8,400 11,990 4,366 2,500 10,320 ‐ ‐ 6025 Ad‐Promotions 51,308 10,534 9,337 12,565 16,700 14,332 17,000 6026 Ad‐Print 94,508 328,689 82,036 111,074 121,680 115,141 172,000 6121 MilesAhead program 111,073 460,691 89,555 132,289 100,000 72,017 150,000 6140 Conferences & meetings 11,951 7,670 ‐ ‐ 5,100 50 5,100 6145 Air service start up 22,777 21,845 7,387 ‐ ‐ 500 ‐ 6150 Revenue guarantee 2,000,000 1,742,000 1,640,573 821,678 475,204 1,092,254 ‐ 6160 Consulting services 46,197 155,998 31,138 62,716 75,000 59,976 72,500 6510 Medical exams 29 40 155 ‐ ‐ 83 ‐ 6540 Membership dues 230 245 225 35 625 ‐ 625 6600 Other 1,073 915 185 ‐ 1,000 463 1,000 6700 Postage 2,065 36 550 112 400 ‐ 400 6730 Printing 19,174 18,630 42,009 21,645 36,459 14,419 26,900 6751 Telephone‐cellular 1,417 1,621 830 ‐ ‐ ‐ ‐ 6752 Telephone‐local 2,816 1,068 726 ‐ 312 ‐ 312 6753 Telephone‐long distance 39 ‐ ‐ 305 307 198 300 6800 Travel & transportation 13,465 14,150 6,191 1,477 4,700 447 3,750 TOTAL CONTRACTUAL SERVICES 2,757,628 3,187,401 2,222,563 1,404,136 1,081,807 1,594,709 711,887

COMMODITIES7140 Conferences & meetings 380 5,184 7,029 4,590 6,500 309 6,500 7200 Equipment 276 1,168 ‐ 186 1,750 1,142 1,000 7380 Other 2,266 300 29 13 1,000 403 1,000 7600 Subscriptions 217 614 400 58 720 ‐ 720 7750 Supplies‐office ‐ 185 459 10 750 125 750 7796 Supplies‐promotional 17,725 16,948 11,067 17,118 27,000 11,893 17,000 TOTAL COMMODITIES 20,863 24,399 18,984 21,975 37,720 13,871 26,970

DEPARTMENT TOTAL 2,903,683$ 3,419,407$ 2,435,703$ 1,508,764$ 1,215,952$ 1,710,260$ 831,169$



56

Air Service Marketing Budget Justifications


Health insuranceThe Authority is partially self funded and estimates for this partial funding are incorporated into the annual costs noted below.The annual cost for the Authority at 80% is as follows by each type of coverage:Employee = $4,988.58/$5,169.98Employee + Spouse = $9,883.55/$10,051.35Employee + Children = $9,431.54Family = $13,976.50Dental insuranceMonthly administration fee of $5.20 per employee and the mothly est cost. The dental insurance is self funded.Life insuranceLife and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life at $.24/$1000 and AD&D at $.05/$1000.Health 9,884 Dental 680 Life 470 Total employee insurance 11,033$

5450 OvertimeEstimated 20 hours of overtime for hourly employees. 660$

5500 Payroll TaxesFICA ‐ 6.2% of base wage up to $106,800 4,338 Medicare ‐ 1.45% of base wage 1,014 State unemployment ‐ 2.2% of the first $12,300 527 Total payroll taxes 5,879$


5600 SalariesIncludes 1 full time employee and 2 seasonal interns. 69,300$

5750 TrainingWebsite training and photoshop 1,200$

5800 Workers compensation insurance 450$

CONTRACTUAL SERVICESAdvertising

6021 Television 150,000$

6022 Radio 75,000$

6023 Billboards 37,000$

Advertising associated with airline, charter and/or cargo service and FTZ promotion.


57


6025 Promotions/Sponsorships 17,000$

6026 Print 172,000$

6121 MilesAhead program 150,000$

6140 Conferences & meetingsTravel agent educational receptions (4 @ $900) 3,600Other 1,500Total conferences & meetings 5,100$

6160 Consulting servicesAd design, production and placement 49,000Website update & production 15,000Email blasting 5,500Photography and video services 3,000Total consulting services 72,500$

6540 Membership duesMidwest ASTA 125Other 500Total membership dues 625$


6700 PostageMailings, travel agents & charter (1,000 x$.40) 400$

6730 PrintingBanners 3,000Invitations/cards 1,000RFD brochure reprint 3,000Cargo promotional materials 3,000Rack cards 2,550Phone book 3,900FTZ materials 3,750Holiday card 700Other 6,000Total printing 26,900$

6752 Telephone‐local Outlook exchange hosting ‐ 2 boxes 312Total telephone‐local 312$

6753 Telephone‐long distance ‐ 800 number 300$

6800 Travel & transportation


58


Amounts include an estimate of $600/trip airfare, lodging of $170/night and M&I of $55/day.Other 2,550Mileage (2,500 @ $.48/mi) 1,200Total travel & transportation 3,750$

COMMODITIES7140 Conferences & meetings

In‐house luncheon meetings 1,500Special events(not including Airfest) 5,000Total conferences & meetings 6,500$

7200 Equipment ‐ digital camera 1,000$

7380 Other ‐ Commodities not itemized in other accounts. 1,000$

7600 SubscriptionsEmail hosting service $30/month for 2 720$

7750 Supplies‐officeShipping via UPS 750$

7796 Supplies‐promotionalPromotional items endorsing airport awareness and customer service.Shirts, hats, pens, coasters, lanyards, coloring books, etc 15,000 Tenant gifts 2,000 Total supplies‐promotional 17,000$


59

Terminal Services Department Summary

The Terminal Services Department is responsible for the customer from the parking lot to the jetway. In 2002 there were virtually no passengers now it is estimated that approximately 180,000 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. Goals and Objectives To provide for exceptional customer service in a hassle free, high value environment.

Maintain a high level of customer service and care. Conduct and analyze periodic passenger surveys to analyze ways to improve the passenger experience.

Provide information and community outreach through various forms. Staff airport information booths and other areas of the terminal daily. Maintain and enhance customer service and community outreach by hosting meetings and events.

Track and respond to customer comments and questions within 48 hours of receipt. Maintain and improve tenant relations by monthly meeting with all terminal tenants. Beautify all terminal spaces to enhance the passenger experience


60

Terminal Services Department BudgetACTUAL BUDGET ESTIMATE BUDGETFYE08 FYE09 FYE09 FYE10

5400 Insurance 38,388$ 51,546$ 42,631$ 48,416$ 5450 Overtime 19,073 12,909 22,278 13,424 5451 Double time 12,405 8,454 12,101 6,634 5500 Payroll taxes 14,629 26,897 18,538 24,922 5560 Pension contribution 13,632 15,867 16,299 16,592 5600 Salaries/wages 176,952 264,341 221,462 280,961 5750 Training 317 1,000 396 1,000 5800 Workers compensation insurance 14,218 24,261 21,434 23,217 5900 Uniforms 677 1,144 995 1,144 5901 Uniforms‐lost,damaged,replaced ‐ 100 ‐ 100 5903 Uniforms‐other 477 1,500 717 600

TOTAL PERSONNEL SERVICES 290,768 408,019 356,851 417,010

6100 Building repair 3,370 2,000 7,220 4,000 6140 Conferences & meetings 4,592 6,800 7,259 8,800 6201 Energy‐electric 170,015 170,000 193,131 164,000 6202 Energy‐natural gas 25,380 22,000 30,119 27,000 6321 Equip maint‐repairs/services 2,505 8,450 22,834 12,450 6322 Equip maint‐service contracts 24,806 26,100 22,378 46,280 6350 Equipment rental 2,206 4,000 384 4,000 6410 Landscaping 8,225 12,000 2,803 4,500 6510 Medical exams 22 250 173 250 6540 Membership dues 35 1,000 43 1,000 6600 Other ‐ 2,000 ‐ 2,000 6700 Postage 115 1,000 ‐ 3,000 6751 Telephone‐cellular 1,319 2,000 2,786 2,880 6752 Telephone‐local 7,201 7,436 6,663 8,106 6753 Telephone‐long distance ‐ 200 2 200 6800 Travel & transportation 832 5,000 161 2,500 6800 Customer care/customer service ‐ 5,000 610 5,000 6850 Utilities 3,082 4,000 5,785 5,900 6950 Waste removal 4,792 5,400 5,595 65,628

TOTAL CONTRACTUAL SERVICES 258,497 284,636 307,944 367,494

7100 Building repair 22,127 28,700 7,574 33,700 7140 Conferences & meetings 1,162 7,910 1,333 6,910 7200 Equipment 10,512 14,865 5,237 11,340 7300 Landscaping 2,523 4,000 4,638 4,000 7380 Other 1,858 2,000 315 2,000 7540 Signage 8,189 10,000 1,365 9,000 7580 Software ‐ 4,625 ‐ 4,625 7600 Subscriptions 350 300 ‐ 150 7660 Supplies‐janitorial 16,068 13,710 17,417 14,970 7750 Supplies‐office 352 1,500 788 2,000 7780 Supplies‐other 2,015 18,800 2,560 9,000

TOTAL COMMODITIES 65,156 106,410 41,227 97,695

DEPARTMENT TOTAL 614,421$ 799,065$ 706,022$ 882,199$

CODE/LINE ITEM, Department 08PERSONNEL SERVICES


COMMODITIES


61

Terminal Services Budget Justifications


Health, dental and life insurance costs for employees.Health insuranceThe Authority is partially self funded and estimates for this partial funding are incorporated into the annual costs noted below.The annual cost for the Authority at 80% is as follows by each type of coverage:Employee = $4,988.58/$5,169.98Employee + Spouse = $9,883.55/$10,051.35Employee + Children = $9,431.54Family = $13,976.50Dental insuranceMonthly administration fee of $5.20 per employee and the mothly est cost. The dental insurance is self funded.Life insuranceLife and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life at $.24/$1000 and AD&D at $.05/$1000.Health 43,814 Dental 2,733 Life 1,868 Total employee insurance 48,416$

5450 OvertimeEstimated 460 hours of overtime for hourly employees. 13,424$

5451 Double timeEstimated 230 hours of overtime for hourly employees. 6,634$



5600 Salaries6 full time employees and 2 part‐time employees 280,961 Total salaries 280,961$

5750 Training 1,000$


5900 Uniforms4ee @ $5.5/week 1,144$

5901 Uniforms ‐ lost/damage/replacement 100$

5903 Uniforms ‐ protective clothing 600$


62


CONTRACTUAL SERVICES6100 Building repair

Structural repair of administration building. 4,000$

6140 Conferences & meetings Dedications 300 Terminal celebrations 4,000 Other 4,500 Total conferences & meetings 8,800$

6201 Energy‐electric ‐ terminal 164,000$

6202 Energy‐natural gas ‐ terminal 27,000$

6321 Equip maint‐repairs/services HVAC 7,500 Door repair 2,500 Other 2,450 Total equipment maintenance ‐ repairs/service 12,450$

6322 Equip maint‐service contracts Escalator maintenance contract 10,000 Jetbridge preventive maintenance contract 14,500 Water softener service 3,480 Common use system maintenance contract 17,000 Data‐Aire Preventive Maintenance 800 Other 500 Total equipment maintenance‐service contracts 46,280$

6350 Equipment rental High lift/boom 2,000 Other 2,000 Total equipment rental 4,000$

6410 Landscaping 4,500$

6510 Medical exams 250$

6540 Membership dues Terminal group 1,000$


6700 Postage 3,000$


6752 Telephone‐localLocal carrier 2,220 Internet connection (T1 connection) 4,950


63


Outlook exchange hosting ‐ 6 boxes 936 Total telephone ‐ local 8,106$

6753 Telephone‐long distance 200$

6800 Travel & transportationAmounts include an estimate of $600/trip airfare, lodging of $140/night and M&I of $40/dayGround Sercurity Coordinator (GSC) training 1,000 Airport related seminars's 1,000 Other 500 Total travel & transportation 2,500$

6806 Customer care/customer serviceAmounts for issues for passengers 5,000$

6850 UtilitiesWater 3,200 Sewer 2,700 Total utilities 5,900$

6950 Waste removalDebris and extra dumpster pick‐ups 5,128 International rubbish removal 60,000 Other ‐ line cleaning 500 Total waste removal 65,628$

7100 Building repairMaterials used in connection with the maintenance of terminal building areas not covered by tenant leases. 33,700$

7140 Conferences & meetingsWater rental and delivery 910 Terminal events 5,000 Miscellaneous 1,000 Total conferences & meetings 6,910$

7200 EquipmentFurniture 3,000Computer 1,000Hand tools, snow shovels, etc 1,500Vacuum 2,400Stanchions for queing line 2,440Other 1,000Total equipment 11,340$

7300 LandscapingSupplies associated with turf maintenance of terminal area. 4,000$

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

COMMODITIES


64


7540 SignageRepair & replacement of signage for terminal area. 9,000$

7580 Software FIDS software 4,625 Total software 4,625$

7600 SubscriptionsAirport related magazines 150 Total subscriptions 150$

7660 Supplies‐janitorialRoll towels 3,400 Toilet paper 3,240 Hand towels 1,500 Cleaners 4,200 Strippers/waxes 1,050 Mop heads/brushes/brooms/bags/etc 1,580 Total supplies‐janitorial 14,970$

7750 Supplies‐office 2,000$

7780 Supplies‐otherTerminal artwork 4,000 Terminal entrance/exit lane seasonal decorating 4,000 Other 1,000 Total supplies‐other 9,000$


65

AirFest Department Summary

The AirFest Department plans and promotes the annual airshow. It was necessary to separately identify the related costs of the event. The budget for AirFest is based on a two day event with an estimated 75,000 attendance and the headliner is the F22 Raptor. 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 a show that results in a breakeven or better financial position. Have all fixed costs paid prior to gate opening. Produce an event that is a top rated in the region Enhance every opportunity to market RFD as whole Create emergency plan for inclement weather


66

AirFest Department BudgetACTUAL BUDGET ESTIMATE BUDGETFYE08 FYE09 FYE09 FYE10

5400 Insurance 13,422$ 14,541$ 14,495$ 15,126$ 5500 Payroll taxes 4,547 5,058 3,796 4,740 5560 Pension contribution 3,914 3,686 3,702 3,798 5600 Salaries/wages 64,409 56,710 54,151 58,427 5605 Outside labor 13,514 26,000 19,844 10,000 5800 Workers compensation insurance 1,293 346 307 380

TOTAL PERSONNEL SERVICES 101,099 106,341 96,295 92,471

6021 Ad‐Television 11,950 7,400 4,149 7,500 6022 Ad‐Radio 2,838 7,135 6,665 7,500 6023 Ad‐Billboards 3,323 4,110 4,043 ‐ 6024 Ad‐Direct ‐ ‐ 250 ‐ 6025 Ad‐Promotions 188 ‐ ‐ 500 6026 Ad‐Print 18,953 17,855 18,790 14,337 6140 Conferences & meetings 60,038 3,000 2,510 2,500 6160 Consulting services ‐ 1,000 2,967 500 6165 Airshow contractual 252,836 229,500 240,275 131,000 6170 Airshow lodging ‐ 20,500 53,738 34,000 6175 Airshow rental services ‐ 50,752 63,907 46,925 6185 Airshow food and beverages ‐ 91,500 59,342 31,500 6190 Airshow transportation ‐ 40,500 61,736 28,000 6201 Energy‐electric ‐ 5,000 ‐ ‐ 6300 Engineering services 11,290 3,500 ‐ 1,000 6322 Equip maint‐service contracts 4,210 2,500 2,200 2,500 6350 Equipment rental 98,931 8,300 16,090 7,300 6400 Insurance 14,407 14,500 14,407 12,000 6540 Membership dues 295 ‐ ‐ ‐ 6480 Licenses, titles & inspections 456 456 143 254 6600 Other 1,363 4,500 6,121 4,500 6700 Postage ‐ ‐ 533 ‐ 6730 Printing 17,513 13,811 25,871 16,650 6751 Telephone‐cellular ‐ 500 860 850 6752 Telephone‐local ‐ 2,950 ‐ 500 6800 Travel & transportation 86,372 2,650 1,492 2,150 6950 Waste removal ‐ ‐ ‐ 1,000

TOTAL CONTRACTUAL SERVICES 584,963 531,919 586,088 352,966

7271 Fuel‐diesel ‐ 1,500 2,340 1,500 7272 Fuel‐unleaded ‐ 100 ‐ 250 7273 Fuel‐other ‐ 34,000 38,967 21,000 7300 Landscaping ‐ 3,500 1,488 1,500 7540 Signage 9,964 9,000 11,990 5,000 7660 Supplies‐janitorial ‐ 500 2,060 1,000 7750 Supplies‐office ‐ 1,250 2,720 2,000 7780 Supplies‐other 57,587 300 8,330 850 7782 Supplies‐hardware ‐ 1,200 355 1,200 7796 Supplies‐promotional ‐ Airshow 1,662 12,050 11,544 11,500 7902 Maint‐equipment ‐ 2,000 1,505 2,000

TOTAL COMMODITIES 69,213 65,400 81,300 47,800

DEPARTMENT TOTAL 755,275$ 703,660$ 763,684$ 493,237$

CODE/LINE ITEM, Department 08PERSONNEL SERVICES


COMMODITIES


67

AirFest Budget Justifications


Health, dental and life insurance costs for employees.Health insuranceThe Authority is partially self funded and estimates for this partial funding are incorporated into the annual costs noted below.The annual cost for the Authority at 80% is as follows by each type of coverage:Employee = $4,988.58/$5,169.98Employee + Spouse = $9,883.55/$10,051.35Employee + Children = $9,431.54Family = $13,976.50Dental insuranceMonthly administration fee of $5.20 per employee and the mothly est cost. The dental insurance is self funded.Life insuranceLife and AD&D insurance is provided to current employees. The benefit is 2.5 times an employee's base salary with life at $.24/$1000 and AD&D at $.05/$1000.Health 13,977 Dental 680 Life 470 Total employee insurance 15,126$

5500 Payroll taxesFICA ‐ 6.2% of base wage up to $106,800 3,622 Medicare ‐ 1.45% of base wage 847 State unemployment ‐ 2.2% of the first $12,300 271 Total payroll taxes 4,740$


5600 Salaries1 full time employee 58,427 Total salaries 58,427$

5605 Outside labor 10,000$

5800 Workers compensation insurance 380$

CONTRACTUAL SERVICESAdvertising

6021 Television 7,500 6022 Radio 7,500 6024 Direct 500 6025 Promotions 500 6026 Print 14,337

Total advertising 30,337$

6140 Conferences & meetings Airshow research and conference 2,500 Total conferences & meetings 2,500$


68


6160 Consulting services Website update and design 500$

6165 Airshow contractualAirSho Inc ‐ Rudy Malnati 26,000 Performers fee 50,000 AirSho Inc ‐ Support team 25,000 Contracted security police 15,000 Static displays 2,500 Pyrotechnics 12,500 Total airshow contractual 131,000$

6170 Airshow lodgingPerformers 33,000 Support units 1,000 Total airshow lodging 34,000$

6175 Airshow rental servicesPortable toilets 6,000 Fencing ‐ bicycle 5,000 Barricades 3,000 Tents 25,325 Tables 2,500 Chairs 5,100 Total airshow rental services 46,925$

6185 Airshow food and beveragesCaptains club 6,000 Volunteers 3,500 Host tent 7,500 Staff tent 3,500 VIP Party 5,000 Performers 1,000 Ice 5,000 Total airshow food and beverages 31,500$

6190 Airshow transportationCars 20,000 Vans 2,000 Golf carts 5,000 Airfare 1,000 Total airshow transportation 28,000$

6300 Engineering services Layout drawings 1,000 Total engineering services 1,000$

6322 Equip maint‐service contracts ‐ mowing ‐ electrical 2,500$

6350 Equipment rental Grease barrels 250 Radios 2,000


69


Generators 5,000 Towels 50 Total equipment rental 7,300$

6400 Insurance Airshow 12,000 Total insurance 12,000$

6480 Licenses, titles & inspections

Tent permit 38

City of Rockford event application 35

Winnebago County heatlh department certificate 36

City of Rockford liquor application 45

Illinois liquor control license 100

Total licenses, titles & inspections 254$


6730 Printing Volunteer food tickets 150 Admission tickets 3,500 Copy machines usage 3,000 Volunteer and staff credentials 5,000 Banners, flyers and posters 5,000 Total printing 16,650$

6751 Telephone‐cellular 850$

6752 Telephone‐local 500$

6800 Travel & transportation (airfare/hotel/per diem)Staff conferences and training 2,000 Mileage 150 Total travel & transportation 2,150$

6950 Waste removalDebris and extra dumpster pick‐ups 1,000 Total waste removal 1,000$

COMMODITIES7271 Fuel‐diesel ‐ generators 1,500$

7272 Fuel‐unleaded ‐rental vehicles 250$

7273 Fuel‐other Pyro fuel 2,500 Aircraft fuel 14,000 Smoke oil 4,500 Total fuel ‐ other 21,000$


70


7300 LandscapingMulch and supplies for grounds 1,500$

7540 Signage 5,000$

7660 Supplies‐janitorialTrash can liners 1,000 Total supplies‐janitorial 1,000$

7750 Supplies‐officeMisc supplies 2,000 Total supplies‐office 2,000$

7780 Supplies ‐ other Extension cords 100 Wristbands 750 Total supplies‐other 850$

7782 Supplies‐hardware (expendable supplies) 1,200$

7796 Supplies‐promotionalVolunteer T‐shirts 5,000 Rudy's Team shirts 1,000 Commissioner's shirts 1,000 Staff shirts 1,500 Gifts for volunteers souvenir sale merchandise 3,000 Total supplies ‐ promotional 11,500$

7902 Maintenance‐equipment 2,000$


71

Non‐Operating Revenues and Expenses Budget

ACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE BUDGETCODE/LINE ITEM FYE05 FYE06 FYE07 FYE08 FYE09 FYE09 FYE10NON‐OPERATING REVENUE9000 Annexation agreement 125,239$ 135,547$ 127,373$ 139,457$ 140,000$ 134,025$ 139,000$ 9100 Interest income 179,239 334,787 502,678 468,102 405,000 189,310 200,000 9200 Taxes‐property (operating levy) 2,549,793 2,656,717 2,804,116 2,966,062 3,112,506 3,102,000 3,267,822 9205 Property tax interest (operating levy) 841 3,270 4,189 4,465 4,500 3,225 4,500 9210 Taxes‐property (debt service levy) 6,259,881 6,464,965 5,499,185 ‐ ‐ ‐ ‐ 9215 Property tax interest (debt service levy) 2,064 7,958 8,214 ‐ ‐ ‐ ‐ 9250 Taxes‐corporate replacement 404,089 521,408 566,562 646,178 500,000 454,762 400,000 9260 AIP Funds Reimbursement 471,319 1,063,248 3,587,243 3,430,820 2,000,000 1,945,210 1,000,000 9270 Other Credits ‐ ‐ ‐ ‐ ‐ 413,483 ‐ 9285 Air service campaign 475,727 ‐ ‐ ‐ ‐ ‐ ‐ TOTAL REVENUE 10,468,192 11,187,900 13,099,561 7,655,084 6,162,006 6,242,016 5,011,322

NON‐OPERATING EXPENSES9500 Interest expense 517,094 317,867 130,904 13,312 8,320 2,829 350,000 9720 Bad debt expense 14,270 53,607 4,025 ‐ ‐ ‐ ‐ 9800 Other debits ‐ 138,825 ‐ ‐ ‐ ‐ ‐ 9810 Loss on asset disposal 9,147 ‐ ‐ ‐ ‐ ‐ ‐

TOTAL EXPENSES 540,511 510,299 134,929 13,312 8,320 2,829 350,000 NET TOTAL $ 9,927,681 $10,677,601 $12,964,632 $ 7,641,772 $ 6,153,686 $ 6,239,187 $ 4,661,322

OTHER CAPITAL CONTRIBUTIONS9270 Passenger facility charges 58,549 192,865 261,984 401,647 473,040 373,421 420,480 9260 Funds from auctioned equipment 573 7,979 ‐ 4,324 5,000 ‐ 5,000

TOTAL CONTRIBUTIONS 59,122$ 200,844$ 261,984$ 405,971$ 478,040$ 373,421$ 425,480$


72

Non‐Operating Revenues and Expenses Budget Justifications

NON‐OPERATING REVENUE9000 Annexation agreement

The Annexation Agreement (section 7.3D) dated 2 April 1991 by and between theCity of Rockford and the Greater Rockford Airport Authority, stipulates the Cityshall pay to the Authority 30 percent of the real property taxes levied by the Cityupon the Authority. 139,000$

9100 Interest incomeInterest earned on all bank deposits and investments. 200,000$

9200 Taxes‐property (operating levy)FYE09 Tax Levy Ordinance #09‐05 3,267,822$

9205 Property tax interest (operating levy)Interest received on the operating tax levy. 4,500$

9250 Taxes‐corporate replacementPersonal Property Replacement Tax (PPRT) revenue received from theIllinois Department of Revenue (estimate). 400,000$

9260 AIP Reimbursement FundsAmounts reimbursed to the airport for previous projects. 1,000,000$

NON‐OPERATING EXPENSES9500 Interest expense

Alternate revenue bond 350,000 Total interest expense 350,000$ p ,$

OTHER CAPITAL CONTRIBUTIONS3060 Passenger facility charges

Projected FY2009 passenger enplanements 96,000 Passenger facility charge ($4.5 less expenses) 4.38$

420,480$

9260 Funds from auctioned equipment 5,000$


73

Capital Improvement Program Summary The Capital Improvement Program (CIP) is a 5 to 10 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. Projected FYE2010 CIP capital expenditures are as follows and detail of individual items to follow.

Airside Projects $ 170,000 Terminal Projects 227,000 Admin/Operations 248,700

Total Capital Improvements $ 645,700 Airside Projects Airside projects include improvements for runways, taxiways aprons, building inside the airfield fence. TAXIWAY REHABILITATION‐F, B & E: Rehabilitate Taxiway "F" (Txy "A" to 1/19) & Txy Bravo‐North ‐ Ph 2b, Rehabilitate Taxiway Bravo‐South and Txy "E" ‐ Ph 2. Taxiways are in need of rehab as pavement conditions are beginning to need constant repair and patching. PCI=19, 26, 38 and 42 from the 2005 pavement survey. The Authorities share is 2.5%; the total cost of the project is $5,000,000.

Project

TAXIWAY REHABILITATION‐F, B & E (Authority share only) $125,000

Total Project Cost $5,000,000

Operating Impact N/AReduce the amount of staff time spent repairing and filling cracks. This area utilizes an estimated 500 man hours annual on repair. MASTER PLAN/139 UPDATE: An airport master plan is a comprehensive study of an airport and usually describes the short‐, medium‐, and long‐term development plans to meet future aviation demand. Since RFD has gone through considerable changes in the last few years it was necessary to update this plan for the known changes. The Authorities share is 2.5%. Total cost of project is $500,000. Project MASTER PLAN/139 UPDATE (Authority share only) $12,500 Total Project Cost $500,000Operating Impact N/A


74

PART 150 UPDATE: FAR Part 150 establishes a single system for the measurement of airport (and background) noise, a single system for determining the exposure of individuals to airport noise, and a standardized airport noise compatibility planning program. The goal of the overall program is for RFD, in consultation with state/local planners, local aviation groups and interested citizens, to develop a balanced and cost‐effective program to minimize and/or mitigate the airport's noise impact on local communities. With the additional infrastructure and the potential for large aircraft in newly developed parts of the airport it was necessary for an update to our current plan. The Authorities share is 2.5%. Total cost of project is $350,000.

Project

PART 150 UPDATE (Authority share only) $8,750

Total Project Cost $350,000

Operating Impact N/A LAND ACQUISITION‐RUNWAY25‐RUNWAY PROTECTION ZONE‐PH 2: Reimbursement for Land Acquisition in the runway protection zone at the end of runway25. The Authorities share is 2.5%. Total estimated cost is $250,000. Project LAND ACQUISITION‐RUNWAY25‐RUNWAY PROTECTION ZONE‐PH 2 (Authority share only) $6,250 Total Project Cost $250,000Operating Impact N/A LAND ACQUISITION‐PART 150: Acquire Part 150 Parcels within 65 decibel land contour (from current 150 update). The Authorities share is 2.5%. Total estimated cost $200,000.

Project

LAND ACQUISITION‐PART 150 (Authority share only) $5,000

Total Project Cost $200,000

Operating Impact N/A REHABILITATE RUNWAY 1/19‐CENTERLINE: Pavement is cracking and requires significant and frequent maintenance rehab will extend life until a full overlay can be funded. The Authorities share is 2.5%. Total estimated cost is $500,000. Project REHABILITATE RUNWAY 1/19‐centerline (Authority share only) $12,500 Total Project Cost $500,000Operating Impact N/A Terminal Projects Projects related to any area from terminal parking lots to the jet bridges and everything in between. HVAC‐VAV UPGRADE: Upgrade will create zones and allow for better energy efficiencies in the terminal building and has a two year payback through energy savings.


75

Project

HVAC‐VAV upgrade $35,000

Operating Impact

Will reduce electricity costs in the terminal building by 10% in 1st year. SEATING: Additional and replacement seating for the expanded passenger hold areas.

Project

SEATING $51,000

Operating Impact

Will reduce the amount of staff time to repair and clean existing units. TILE: First floor passenger check in area ‐ Carpet is in bad shape and has permanent staining and wear.

Project

TILE $50,000

Operating Impact Creates efficiency with staff. Entire 1st floor is now tiled and can be cleaned in a shorter time period. SIGNAGE: Highway directions/parking lot marking ‐ Directional signage needed for passengers/visitors and parking lot markings.

Project

SIGNAGE $40,000

Operating Impact N/A FLIGHT INFORMATION DISPLAY SYSTEM UPGRADE: Provide enhancements to our current system or replacement and to provide remote access to operations center.

Project

FLIGHT INFORMATION DISPLAY SYSTEM UPGRADE $25,000

Operating Impact N/A PASSENGER HOLD TELEVISIONS: Addition of four 52in flat panel TV's to enhance areas in the locations of Gate 1, 2, and 3. Include 3 additional satellite tuners, a rooftop antenna. Project PASSENGER HOLD TELEVISIONS $26,000Operating Impact N/A


76

Administrative Projects All other projects not outline in the airside, landside or terminal projects and other items related to the administration and operation of the airport. COMPUTER EQUIPMENT AND HARDWARE: Various upgrades for computers in the replacement program.

Project

COMPUTER EQUIPMENT AND HARDWARE $15,000

Operating Impact

Should reduce the amount of service calls on the older, slower operating equipment. OPERATIONAL/FACILITIES/SECURITY INTERFACE: Visual Operations Security Console (VSOC) = cutting edge technology that ties such items as any type of electronic, data, control, surveillance and security components, operational, facilities programs together and develops a potential central system format. That system can then be utilized by any entity that has a need, anything from a first responder, to a repair technician and anyone in between. The applications would be endless once put in place and with the proper security codes could be accessed from any computer and/or imaged on any monitor. GRAA would be a test block at this time and be later shared with local and regional entities. Possibilities are there for airport tenants to buy in, making it an additional revenue source for GRAA. Project OPERATIONAL/FACILITIES/SECURITY INTERFACE $123,000Operating Impact Once fully operational will allow for a single location to monitor all systems within the airport facility thereby potentially requiring less man‐hours. WELDER: Replacement of current shop welder. Current welder has a 10 minute duty cycle (6min of welding and 4 minutes of cool down). This welder now has about 3 minutes of welding before it starts cooling. Within this replacement will be the ability to tig weld.

Project

WELDER $6,500

Operating Impact

Will reduce the amount of staff time required to perform the work. BROOM HEAD UP‐GRADE (Vehicle #102): Replace broom head drive motor assemblies, end‐caps, cores; return hoses retro‐fit, making it current production model parts availability. Stronger system, replaces obsolete motors, makes all 4 brooms having same interchangeable parts, reducing inventory of repair parts.

Project

BROOM HEAD UP‐GRADE $40,000

Operating Impact

Will allow for one type of brush for all snow equipment.


77

OPS CENTER UP‐GRADE: PHASE I /PHASE II: This upgrade will serve as an Emergency Operations Center along with a training facility. As the rules have changed with TSA is has required continual training to the 800+ badged airport users. Project

OPS CENTER UP‐GRADE: PHASE I /PHASE II $30,000Operating Impact

PAINT MACHINE: It has been realized with the new walk‐behind purchased in the prior year that the versatility of the small unit allows more efficient painting in most areas. Two paint crews would shorten our annual striping program dramatically, allowing increased efficiency of staff utilization. The old, large machine would still be utilized for mass areas until it would need to be retired. Project PAINT MACHINE $12,500Operating Impact Will reduce the amount of staff time required to perform the work. BACKHOE RAMP HOG PLOW: The backhoe is not utilized during snow removal. It would be worked in the terminal areas and relieve us of pulling a loader out onto street‐side for parking lot cleaning. It is smaller and more agile than the loaders working around parked vehicles. Project BACKHOE RAMP HOG PLOW $6,700Operating Impact Will reduce the amount of staff time required to perform the work and the ability to operate or effectively through the parking lots. 12.5FT ROAD PLOW (replacement): Both road plows and the spare are almost unusable. This would be placed on one road truck and we would utilize the three old units to make one good one for the second truck.

Project

12.5FT ROAD PLOW $15,000

Operating Impact

Less repair costs to existing units.


78

Exhibit 1 Tentative Budget and Appropriation Ordinance

Greater Rockford Airport Authority RESOLUTION NO. 09‐12

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, 2009 and ending April 30, 2010;

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, 2009 and ending April 30, 2010 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, 2009 and ending April 30, 2010 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 April 23, 2009 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.


79

Exhibit 1(con’t)

Tentative Budget and Appropriation Ordinance RESOLUTION NO. 09‐12

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 _Norman_______________ moved, seconded by Commissioner ___Puri___________ that Resolution Number 09‐12 be adopted.

Vote Vote Eugene H. Allen Aye Mary Norman Aye Bharat Puri Aye Brian Boyer Aye Peter Provenzano Absent Michael P. Dunn Aye

ADOPTED this 26th day of February, 2009 by the Chairman and the Board of Commissioners of the Greater Rockford Airport Authority, Winnebago County, Illinois.

____(signed February 26, 2009)__________ Michael P. Dunn, Chairman

ATTEST: ____(signed February 26, 2009)__________ Eugene H. Allen, Treasurer


80

Exhibit 2 Chicago Rockford International Airport (RFD)

Rates and Charges Effective May 1, 2009

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

Signatory and/or scheduled Airlines $55.00 Non‐Signatory and/or charter flights $110.00

Ticket Counter/Computer Use fee (per enplanement) $0.10 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 $1.671 /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 International rubbish fee 4x4 hopper (200 gallons) $305.00

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)


81

Exhibit 2(con’t) 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

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 $45.00/hr Skilled $55.00/hr Administration $75.00/hr Ground Security Coordinator fee (1/2 hour minimum) $60.00/hr


82

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. ARFF – Aircraft Rescue and Fire Fighting. The Authority – Refers to the Greater Rockford Airport Authority BOD ‐ Biochemical Oxygen Demand 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.


83

Exhibit 3(con’t) Capital Budget ‐ Budgeted expenditures for capital improvements, capital outlay, debt service and grant service that are in excess of $2,000 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. 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 Deplaning Passenger – An arriving passenger. Enplaning Passenger – A departing Passenger. 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 e 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 ‐ 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.


84

Exhibit 3(con’t) FOD – Foreign Object Debris or trash on the airfield. FTZ ‐ Foreign Trade Zone 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 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 form the airlines.


85

Exhibit 3(con’t) 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. 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 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‐Hanger – 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


86

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 742 ft. Airport Code RFD Runways Runway 1/19, 8,200’ X 150’, ILS Category I Runway 7/25, 10,000’ x 1150’, ILS Category II/III Tower TRSA 24/7‐365 FBOs Emery Air, Inc., North American/Pride Scheduled Passenger Service Allegiant Airlines, Direct Air and Apple Vacations Terminal Airlines 2,211 sq. ft. Tenants 4,443 sq. ft. Public/Common 30,433 sq. ft. Mechanical 7,714 sq. ft. Total 44,801 sq. ft. Number of Passenger Gates 5 Number of Loading Bridges 5 Number of Concessionaires in terminal 1 Number of rental car agencies in terminal 3 Car Rental Agencies Avis, Hertz and National/Alamo Parking Short‐Term 1,477 Rental Cars 190 Employees 54


87

Exhibit 4(con’t) Cargo UPS Buildings 670,000 sq. ft. Tandem Building 70,000 sq. ft

DHL Building 27,600 sq. ft. BAX Global 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

(in thousands)% Change from

Prior Yr 2003 $ 2,911,791 5.71% 2004 $ 2,964,364 1.81% 2005 $ 3,155,961 6.46% 2006 $ 3,363,233 6.57% 2007 $ 3,580,845 6.47% 2008 $ 3,722,189 3.95%

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

CY2004 CY2005 CY2006 CY2007 CY2008Air Carrier 12,622 13,683 14,090 14,732 15,010Air Taxi 3,089 3,737 4,908 5,865 5,069GA Local 19,262 12,708 16,035 12,814 11,857GA Itinerant 34,763 35,953 40,129 35,845 30,167Military 2,770 2,966 3,792 4,992 2,829Total 72,506 69,047 78,954 74,248 64,932


88

Exhibit 4(con’t) Passengers

% Change from Prior Yr

FYE04 65,956 2194.92% FYE05 106,918 62.11% FYE06 165,690 54.97% FYE07 196,632 18.67% FYE08 233,044 18.51% FYE09 177,484 ‐23.84%

Cargo Aircraft Landed Weight (lbs.)


FYE04 1,271,605,264 2.35% FYE05 1,383,856,242 8.83% FYE06 1,374,921,520 ‐0.65% FYE07 1,419,558,172 3.25% FYE08 1,487,894,013 4.81% FYE09 1,327,827,612 ‐10.76%

Cargo Enplaned and Deplaned (lbs.)


FYE04 351,037,144 ‐0.56% FYE05 400,839,242 14.19% FYE06 419,450,338 4.64% FYE07 452,478,992 7.87% FYE08 471,963,329 4.31% FYE09 388,527,333 ‐17.68%

Fuel Flowage (gallons)


FYE04 15,826,525 ‐0.79% FYE05 20,690,853 30.74% FYE06 20,592,954 ‐0.47% FYE07 21,210,247 3.00% FYE08 19,246,193 ‐9.26% FYE09 14,755,983 ‐23.33%


89

Exhibit 5

ORDINANCE NO. 09‐03 FISCAL YEAR 2010 BUDGET AND APPROPRIATION ORDINANCE

CERTIFICATE

I, MICHAEL P. DUNN, 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, 2009 AND ENDING April 30, 2010,"

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, 2009 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 2009. [SEAL] ______(signed April 23, 2009)__________________ Michael P. Dunn, Chairman Greater Rockford Airport Authority


90

Exhibit 5(con’t) ORDINANCE NO. 09‐03

GREATER ROCKFORD AIRPORT AUTHORITY BUDGET AND APPROPRIATION ORDINANCE

FOR THE FISCAL YEAR BEGINNING May 1, 2009 AND ENDING April 30, 2010 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, 2010, 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 February 27, 2009

Notice of Public Hearing Published on March 5, 2009

Public Hearing held April 23, 2009 (at 5:25 p.m. Central Daylight Savings time, pursuant to Notice)

Section 2. Appropriations.

For the fiscal year ending April 30, 2010, there is hereby appropriated for the corporate purposes of the Greater Rockford Airport Authority the total sum of $10,021,709 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.

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, 2009 by the financial officer of the Authority.


91

Exhibit 5(con’t) 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 ___Norman_______ and seconded by Commissioner __Allen__________.

Roll Call

Eugene H. Allen Aye Michael P. Dunn Aye Mary Norman Aye Peter Provenzano Absent Brian Boyer Aye Bharat Puri Absent

Passed and approved by the Board of Commissioners of the Greater Rockford Airport Authority on April 23, 2009.

______(signed April 23, 2009)_____

Michael P. Dunn, Chairman Board of Commissioners

Greater Rockford Airport Authority ATTEST: ______(signed April 23, 2009)_____ Brian Boyer Greater Rockford Airport Authority


92

Exhibit 5(con’t) ORDINANCE NO. 09‐03

2009‐2010 BUDGET AND APPROPRIATION ORDINANCE CERTIFICATE

I, Eugene H. Allen, 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, 2009. [SEAL] ______(signed April 23, 2009)_________

Eugene H. Allen Treasurer Greater Rockford Airport Authority

ESTIMATED REVENUES BY SOURCE

FISCAL YEAR 2010 EXPECTED CASH FLOW DURING THE YEAR:

SOURCES Operating Budget Revenue $ 5.537,936 Non‐Operating Revenue 739,000 Tax Levy 3,272,322 AIP Fund Reimbursement 1,000,000 Passenger Facility Charges 420,480 Other Financing Sources 5,000 Total Sources $10,974,738 Beginning Fund Balance, FY09 15,621,248

Total Sources and Fund Balance $26,595,986

USES Operating Expenditures $ 8,759,109 Non‐Operating Expenditures 350,000 Debt Service 266,900 Other 0 Capital Expenditures 645,700 Total Uses $10,021,709 Ending Fund Balance, FY10 16,574,277

Total Uses and Ending Fund Balance $26,595,986


93

RockfoRd, IllInoIs · 2019-06-22 · Rockford, IL 61109 Dear Mr. Chairman and Commissioners:...

Documents

Transcript of RockfoRd, IllInoIs · 2019-06-22 · Rockford, IL 61109 Dear Mr. Chairman and Commissioners:...