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ALBANY COUNTY AIRPORT AUTHORITY TEL: 518-242-2222

ALBANY INTERNATIONAL AIRPORT ADMIN FAX: 518-242-2641

ADMINISTRATION BUILDING FINANCE FAX: 518-242-2640

SUITE 200 SITE: www.albanyairport.com

ALBANY, NEW YORK 12211-1057

ALBANY COUNTY AIRPORT AUTHORITY

AUDIT COMMITTEE

AGENDA

March 14, 2016

1. Acceptance of Minutes: November 18, 2015 2.1 Comprehensive Annual Financial Report for the year-ended 2015 with draft auditor

reports. 2.2 Airlines Rates and Charges Settlement and Revenue Sharing Calculation Report for

the year ended December 31, 2015 with draft consultant report. 2.3 Annual Investment Report which includes a copy of the Cash Management and

Investment Policy (the Policy) and explanation of the Policy and draft auditor report.

2.4 Performance Measurement Report for 2015.

AGENDA ITEM NO. 1

Approval of Audit Committee Minutes – 11/18/2015






Minutes of the Audit Committee Meeting

of the Albany County Airport Authority

November 18, 2015

Pursuant to notice duly given and posted, the Audit Committee meeting of the Albany County Airport Authority was called to order on Wednesday, November 18, 2015 at 10:25 a.m. in the ACAA Conference Room located in the Administration Building at the Albany International Airport by Audit Committee Chair Robert S. Hite with the following present: MEMBERS PRESENT MEMBERS ABSENT

Robert S. Hite, (Committee Chair) Lyon M. Greenberg, MD (Committee Member) Tony Gorman (Committee Member) Dorsey Whitehead (Not a Committee Member) Rev. Kenneth Doyle (Ex Officio)

STAFF John A. O’Donnell Peter F. Stuto William J. O’Reilly Doug Myers Liz Charland Margaret Herrmann Rima Cerrone

ATTENDEES

Kevin McCoy, Marvin & Co. Heather R. Lewis, CPA, Marvin & Co. Brittney Wineinger, Staff Accountant, Marvin & Co.

1. Approval of Minutes

Dr. Greenberg moved to approve the minutes of the March 23, 2015 Audit Committee meeting. The motion was adopted unanimously.

2.1 Introduction of Kevin McCoy, Partner in Charge of Audit Engagement with Marvin & Company, P.C.

Mr. McCoy advised the Audit Committee of Marvin & Company’s responsibilities to the ACAA Board.

2.2 Delivery of Engagement Letter for the Audit Year 2015 and discussion of

Audit Deliverables

Mr. McCoy introduced Ms. Heather Lewis who will be in charge of the audit. He distributed and reviewed the Engagement Letter for the Audit of 2015 which outlined the Audit deliverables, objectives, management responsibilities, and audit procedures related to financial statements, internal controls, compliance, and audit administration, fees and other matters. Mr. Hite inquired if Mr. Stuto and Mr. O’Reilly had reviewed the Engagement letter and asked if they found it to be in order. Mr. Stuto and Mr. O’Reilly both stated they had reviewed Engagement letter and it is in order.

2.3 Discussion of Audit Schedule

Heather R. Lewis, CPA, Marvin & Co. presented the tentative audit schedule. Ms. Lewis stated that the audit will be conducted with preliminary work being completed before the week of Christmas, and the balance of the audit work completed between January 31st and mid-February. Mr. McCoy advised the auditor’s opinions will be presented at the March 2016 Audit committee meeting.

2.4 Questions and Answers from Audit Committee members

There were no questions.

2.5 Audit Committee Members and Auditor session excluding ACAA staff

(optional)

The Audit Committee and the Auditor had discussion excluding the ACAA staff. 3. Request to exercise 1st Option Year on Marvin and Company, P.C.’s

Contract for Audit Year 2015 in the amount of $35,000 Mr. Hite requested a motion to forward the Request to exercise the 1st Option Year on Marvin and Company, P.C.’s Contract for Audit Year 2015 in the amount of $35,000 to the full Board with the Audit Committee’s recommendation for approval. The motion was adopted unanimously.

There being no further business, the meeting was adjourned at 10:45a.m.







AUDIT COMMITTEE

AGENDA

November 18, 2015

1. Acceptance of Minutes: March 23, 2015

2. Acceptance of Financial & Audit Items [To be handed out at meeting.]

2.1 Introduction of Kevin McCoy, Partner in Charge of Audit Engagement with Marvin & Company, P.C.

2.2 Delivery of Engagement Letter for the Audit Year 2015 and

discussion of Audit Deliverables

2.3 Discussion of Audit Schedule

2.4 Questions and Answers from Audit Committee members

2.5 Audit Committee Members and Auditor session excluding ACAA staff (optional)

3. 3.1 Request to exercise 1st Option Year on Marvin and Company,

P.C.’s Contract for Audit Year 2015 in the amount of $35,000

AGENDA ITEM NO. 2.1

Comprehensive Annual Financial Report for

the year-ended 2015 with draft auditor reports;

AGENDA ITEM NO: 2.1__ AUDIT COMMITTEE MEETING DATE: March 14, 2016


REQUEST FOR AUTHORIZATION

DEPARTMENT: Finance Contact Person: Audit Committee William J. O’Reilly, Chief Financial Officer PURPOSE OF REQUEST:

Review and acceptance of the Authority’s:

Nineteenth Comprehensive Annual Financial Report as of and for the year ended December 31, 2015 (with the draft audit and compliance reports of Marvin and Company, P.C., certified public accountants);

the Authority’s 2015 Rates and Charges Settlement Report to the Signatory Airlines and Signatory Cargo Carriers with draft Consultant Report;

the Authority’s Annual Investment Report in accordance with its Cash Management and Investment Policy and Section 2925 of the Public Authorities Law (with draft audit compliance report of Marvin and Company, P.C., certified public accountants);

The Annual review and approval of the Cash Management and Investment Policy in accordance with Section 2925 of the Public Authorities Law; and

Review of mission statement and performance measures and acceptance of measurement report for 2015 required by Section 2800 of the Public Authorities Law.

BACKUP MATERIALS:

Comprehensive Annual Financial Report for the year-ended 2015 with draft auditor reports;

Airlines Rates and Charges Settlement and Revenue Sharing Calculation Report for the year ended December 31, 2015 with draft consultant report;

Annual Investment Report which includes a copy of the Cash Management and Investment Policy (the Policy) and explanation of the Policy and draft auditor report; and

Performance Measurement Report for 2015 CHIEF EXECUTIVE OFFICER’S RECOMMENDATION:

The Audit Committee will review the above documents at their March 14, 2016 meeting and will present their recommendations for approval by the Board.


COMPREHENSIVE ANNUAL FINANCIAL REPORT

Year Ended December 31, 2015

Prepared by the Finance Department

William J. O’Reilly, CPA Chief Financial Officer

Margaret Herrmann

Chief Accountant

A Component Unit of the County of Albany Town of Colonie, New York

www.albanyairport.com

CUSIP #012123XXX

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ALBANY COUNTY AIRPORT AUTHORITY TELEPHONE: 518-242-2222





Chairman’s Message March 14, 2016

In 2015, the US Domestic Airlines experienced significant relief from jet fuel costs and recorded healthy profits. This favorable environment allowed the airlines to continue to increase available airline seats, airline jobs and airline wages while reducing airline fares and debt and also reinvesting in their product based upon reports from the industry trade association, Airlines for America. At Albany International Airport, the effects of the improved airline industry environment were evident in the 5.5% growth in enplanements in 2015, reaching their highest level since 2009 when airline consolidations began. Late in 2015, American Airlines completed its merger with US Airways expanding its service network and JetBlue began service at Albany as a new Signatory Airline. Other airlines have also announced service expansions for 2016. Based upon scheduled and announced airline service at Albany International Airport, annual enplanements for 2016 are expected to grow further and exceed 1.4 million as airline seat capacity is projected to be 13% more than 2015. Based upon the expansion of available airline passenger seats and service enhancements, it is reasonable to expect Albany International Airport will continue to be the fastest growing airport in Upstate New York in 2016 even though it is already the second largest after Buffalo International Airport. In 2015, the Airport also completed construction of its expanded Aircraft Maintenance, Repair and Overhaul (MRO) facility and saw its occupation by a regional airline adding more jobs and aviation activity to the Airport. The MRO facility expansion was made possible with a State-funded grant intended to promote job creation and economic development. By the close of 2015, the Airport completed negotiations for a new five-year Airport Use and Lease Agreement and Common Cargo Carrier Airfield Use Agreement with its six existing Signatory Airlines and two Signatory Cargo Carriers. These new agreements ensure the Airport’s most important aviation business relationships are soundly in place for years to come and are expected to continue to produce attractive airline rates and charges and revenue for the Airport. In 2015, the prudent management of the Airport budget allowed the Airport cost per enplaned passenger to settle at $7.05, down from a budgeted amount of $8.05. The Airport also generated $3.7 million in net revenue to be shared between the Airport and the airlines under the Airport Use and Lease Agreement. During 2016, the Airport Authority will continue to nurture the development of air service at the Airport, plan and execute its Capital Plan to meet the growing needs of the Airport, and operate the Airport in accordance with its adopted budget. In the coming year, we will continue our mission to provide travelers with outstanding service in full recognition that our success as an airport is dependent on, not only the quantity and quality of air service, but the skills and dedication of all the employees at Albany International Airport.

Rev. Kenneth J. Doyle

Chairman

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March 14, 2016 TO THE MEMBERS OF THE AUTHORITY: The Comprehensive Annual Financial Report (CAFR) of the Albany County Airport Authority (Authority) for the fiscal year ended December 31, 2015 is hereby submitted to the Authority Board and all others interested in the financial condition of Albany International Airport (Airport). This report is published in accordance with the requirements of the State of New York (State) enabling legislation creating the Authority, Article 9, Section 2800 of the Public Authorities Law, and the master bond resolution covering the issuance of indebtedness by the Authority. Pursuant to those requirements, this Comprehensive Annual Financial Report of the Authority has been prepared in accordance with accounting principles general accepted in the United States of America (GAAP). This report consists of four sections: Introductory, Financial, Statistical, and Compliance. The basic financial statements included in the Financial Section have been audited by Marvin and Company, P.C. This report is management’s representations concerning the financial position and changes in net financial position of the Authority. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the Authority has established a comprehensive internal control framework that has been designed to both protect the Authority’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Authority’s financial statements in conformity with GAAP. Because the cost of internal controls should not exceed anticipated benefits, the Authority’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this report is complete and reliable in all material respects. This introductory letter of transmittal should be read in conjunction with Management’s Discussion and Analysis (MD&A) which provides an introduction, overview and analysis of the 2015 basic financial statements. The MD&A is located immediately following the report of the independent auditor in the Financial Section. The MD&A is required supplementary information to the basic financial statements, but is not a part of the basic financial statements and was not audited.

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INDEPENDENT REVIEW FINANCIAL AUDIT The goal of an independent audit is to provide reasonable assurance that the basic financial statements of the Authority for the year ended December 31, 2015 are free of material misstatement. The independent audit involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and any significant estimates made by management and evaluating the overall financial statement presentation. The independent auditor concludes, based upon their audit, that there is a reasonable basis for rendering an unmodified (“clean”) opinion and that the Authority’s financial statements for the year ended December 31, 2015 are presented in conformity with GAAP. The independent auditor’s report is the first component of the Financial Section. SINGLE AUDIT The independent audit of the financial statements is part of the broader mandated provisions of the Single Audit Act of 1996 and the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, relative to financial funds received from the U.S. Government, the New York State Department of Transportation Draft Part 43 of the Codification of Rules and Regulations, relative to State transportation funds received, and also, in conformity with the provisions of the Passenger Facility Charge Audit Guide for Public Agencies. The standards governing these provisions require the independent auditor to report on the fair presentation of the financial statements and on the Authority’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal and state grant awards. The independent auditor’s reports are included in the Compliance Section. As a recipient of federal and state financial assistance, the Authority also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. As part of the Authority’s single audit, tests were made to determine the adequacy of the internal control structure, including that portion related to federal assistance awards, as well as to determine that the Authority has complied with applicable laws and regulations. The results of the Authority’s single audit for the year ended December 31, 2015 provided no instances of material weaknesses in the internal control structure and no instances of noncompliance that are required to be reported under Government Auditing Standards. THE AUTHORITY The Albany County Airport Authority (Authority) is a body corporate and politic constituting a public benefit corporation established and existing pursuant to the Albany County Airport Authority Act, Title 32 of Article 8, as amended, of the State of New York Public Authorities Law (Act). The State created the Authority in 1993 in order to promote the strengthening and improvement of the Airport

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and to facilitate the financing and construction of the initial Terminal Improvement Project (TIP), other subsequent capital improvement plans and gave the Authority the power to operate, maintain and improve the Airport. The County of Albany (County) and the Authority entered into a permanent Airport Lease Agreement dated December 5, 1995, which became effective May 16, 1996 following approval by the Federal Aviation Administration (FAA) of the United States Department of Transportation for the transfer of the sponsorship of the Airport from the County to the Authority. Under the Lease Agreement, that expires forty (40) years after the effective date, the County leases to the Authority the Airport, including all lands, buildings, improvements, structures, easements, rights of access, and all other privileges and appurtenances pertaining to the Airport. The Act creating the Authority set forth the following for its creation:

GOALS– To provide adequate, safe, secure and efficient aviation and transportation facilities at a reasonable cost to the people.

OBJECTIVES – (1) To promote safe, secure, efficient and economic air transportation by preserving and enhancing Airport capacity; (2) to acquire, construct, reconstruct, continue, develop, equip, expand, improve, maintain, finance and operate aviation and other related facilities and services; (3) to stimulate and promote economic development, trade and tourism; (4) to form an integral part of a safe and effective nationwide system of Airports to meet the present and future needs of civil aeronautics and national defense and to assume inclusion of the Authority’s facilities in state, national and international programs for air transportation and for airway capital improvements; and (5) to ensure that aviation facilities shall provide for the protection and enhancement of the natural resources and the quality of the environment of the state and the capital district area.

THE REPORTING ENTITY The Authority is composed of seven members with four members appointed by the majority leader of the Albany County Legislature and three members by the Albany County Executive, all with approval of the Albany County Legislature. The Authority members are appointed for a term of four years or until a successor is appointed, except that any person appointed to fill a vacancy is appointed to serve only the unexpired term. Rev. Kenneth J. Doyle became the Acting Chair of the Board in 2012 and Chair in 2014. John A. O’Donnell, P.E., Chief Executive Officer, is responsible for planning and directing the management of all operations at the Airport including its capital improvement programs. William O’Reilly, CPA, Chief Financial Officer, is responsible for financial planning, budgeting, operating and capital accounting procedures and controls, debt management, airline affairs, and all Authority financial policies and procedures. The Authority has engaged the services of AFCO AvPorts Management LLC, (d/b/a Avports) to manage the daily operations of the Airport and REW Investments, Inc. (d/b/a Million Air-Albany) to

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manage the daily operations of the Fixed Base Operations (FBO). An Organizational Chart is included in this Introductory Section. Based on the County’s responsibility for the appointment of Authority members and their approval of all Airport capital improvement programs and for the issuance of certain debt, the Authority is defined as a component unit of the County under the criteria established by the Governmental Accounting Standards Board (GASB). The Authority has one component unit created in 2009 – the Albany County Airport Authority OPEB Trust – which is reported as a fiduciary fund. PROFILE OF ALBANY INTERNATIONAL AIRPORT Albany International Airport is the gateway to the New York State Greater Capital Region. The Airport, located on approximately a 1,171-acre site in the Town of Colonie, is the primary provider of commercial air transportation to the Albany area, including the northeast-central region of the State, southern Vermont and western Massachusetts. The Airport, located seven miles from downtown City of Albany, is accessible via U.S. Interstate 87, 88 and 90 highways. The Airport is strategically located at the center of New York’s Capital Region and represents the heart of the burgeoning Hudson Valley Corridor known as “Tech Valley.” The Airport is defined by the FAA as a small air traffic hub, an Airport which handles between 0.05 percent and 0.249 percent of the enplaned passengers by U.S. air carriers nationwide. Based on the latest FAA data available, in 2014 the Airport ranked 80th in total enplanements and 97th in total cargo weight. The Airport also ranked 233rd in total aircraft operations in 2014. The Airport has two primary runways, 1-19 and 10-28. The Airport services commercial, cargo, general aviation and military operations with a 24-hour operating air traffic control tower, U.S. Customs and Border Protections support services, and general aviation FBO facilities. Additional Airport data information is included in the Statistical Section of this report. AIRPORT ECONOMICS AND DEMOGRAPHICS The Airport’s 13 county primary air-trade service area for drawing passengers, located in New York State, southern Vermont and western Massachusetts, is home within a 75-mile radius to 1.4 million people and many businesses. Albany’s secondary air-trade service area extends in a 150-mile radius from the Airport deeper into New England and upstate New York and adds an additional population of approximately 1.8 million for a combined total population exceeding 3.1 million in the primary and secondary areas. The Airport’s primary air trade area is at the core of the State Capital of the Nation’s 4thrd largest state by population with more than fifty-thousand state employees and the “Tech Valley,” an ongoing high-technology development program. High tech development continues in the region. Albany’s College of Nanoscale Science and Engineering continues to expand its nanotechnology research and development programs. This nanotechnology center is located within a few miles of the Airport and is the first college in the world dedicated to research, development, education, and

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deployment in the emerging disciplines of nanoscience, nanoengineering, nanobioscience, and nanoeconomics. With over $16 billion in public and private investments, CNSE's Albany NanoTech Complex has attracted over 250 global corporate partners - and is the most advanced research complex at any university in the world. On September 27, 2011 a public announcement revealed that the Albany nanocollege will be the new home of research for the 450 millimeter wafer and the focus of a new $4.8 billion investment. Just across the nearby river Rensselaer Polytechnic Institute recently completed construction of a new Center for Biotechnology and Interdisciplinary Studies. This technology research center ranks among the world’s most advanced research. In late July 2009 Global Foundries broke ground on construction of a $4.6 billion computer chip plant approximately 20 miles north of the Airport which will complement the existing technology facilities already in the region. On June 1, 2010 an expansion of this plant to 1.3 million square feet was announced. In July of 2012 an additional expansion and investment of $2.3 billion was announced. The combination of significant growth in the technology businesses and comparatively low unemployment rates, position Albany for a return to growth in airline activities and passenger usage of the airport. The Airport’s air-trade service area is also the home to world-class summer and winter vacation and recreation attractions that draw individuals and families from across the nation and from around the globe. The Adirondack, Berkshire, Catskill and Green Mountains, Lake George, the Hudson River Valley, and the Mohawk River - Erie Canal corridor offers a cornucopia of excellent entertainment and recreation venues. Features such as the Baseball Hall of Fame in Cooperstown, the Olympic Village in Lake George, the 130-year-old Saratoga Thoroughbred Race Track, and the Tanglewood and Saratoga Performing Arts Centers highlight this region. This area is also home for numerous major colleges, universities and hospitals, the largest of which are set forth in the Statistical Section of this report. AIRLINE ECONOMICS The airlines have endured major financial impacts resulting from a series of events beginning in 2001 that have caused business and leisure passengers to reassess their use of commercial air travel or to elect to use other means of transportation. In 2008, the airlines were especially impacted by high jet fuel prices, forcing a reduction in capacity and reducing the number of flights throughout the system. During the latter part of 2008 the recession reduced the level of travelers and weakened the airlines financial stability. The airlines responded by reducing the size of their work forces, their operating expenses, and airline seat capacity and some consolidation among carriers. The recession brought about low fuel prices which did provide a stabilizing effect on the financial health of the airlines. As the economic recovery began, the airlines were able to raise airfares and charge additional fees for new and existing services such as internet access and baggage. According to Airlines for America, an industry trade association, U.S Airlines lost $62.9 billion from 2001 through 2010, and began to produce growing profits for 2011 growing to $11.6 billion in 2013. In 2014 the domestic airlines produced $9.5 million profit equal to 6% of Gross Revenue and began to add some seat capacity back. In 2015 favorable fuel costs have resulted in airline adding capacity and reporting record profits.

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Some of the potential factors that can impact the airlines and therefore the number of flights and enplanements at this Airport are: (1) any contraction or break in the current economic recovery for any reason; (2) sustained higher fuel costs (3) potential for contraction in air passenger travel in 2013 or beyond; (4) airline seat capacity reductions and market constraints to raising fares could weaken airline profits and cause some airlines to further reduce service; (5) airline financial weakness may result in failure or even further consolidation of airlines, reducing competition and exacerbating the decline in seat capacity; and (6) capacity constraints in the National Airspace System may restrict airline flights. AUTHORITY’S FINANCIAL RESOURCES The information presented in the Financial Section is best understood when it is considered from the broader perspective of the specific environment within which the Airport operates. The Authority’s and Airport’s profile, its goal and objectives, the Airport’s economic and demographics and the Authority’s financial resources are all components of the Airport’s financial health and its ability to meet its financial obligations and service commitments. FINANCIAL CONTROLS The Authority prepares an annual operating budget on the modified accrual basis of accounting. This basis differs from full accrual basis of accounting in that certain expenses are included on a cash basis. These include an expenditure classification for the principal portion of long-term debt obligations, the local share for certain capital projects, and the lack of depreciation expense. All other major revenues and expenses are included in the budget on the accrual basis. The Authority adopts an annual operating budgetary basis of accounting to facilitate calculation of the rates and charges billed to the airlines. A separate capital improvement program budget is prepared for capital projects given their multi-year nature. The Authority’s current Airline Use and Lease Agreement (Agreement) became effective January 1, 2006, and was renewed in 2010, effective January 1, 2011, for an additional five years to December 31, 2015. The Agreement includes a majority-in-interest provision that allows for airline disapproval of certain capital projects. This provision applies to costs in excess of $1,500,000, net of any state and federal grants, for the Airfield, if disapproved by more than 50% of the signatory airlines based upon the maximum gross landed weight of all signatory airlines during the most recent six months and, for the Terminal, if disapproved by signatory airlines representing more than 50% of the total signatory terminal rentals for the most recent six months. The Agreement with the signatory airlines incorporates a hybrid method for calculating airline rates and charges which applies a residual rate making methodology for the airfield and a compensatory methodology for the terminal. The Agreement provides for the signatory passenger airlines to receive 50% of the Airport’s net revenues, as defined in Agreement. The Authority also has the ability under the Agreement to adjust airline rates and charges at any time throughout the year to ensure adherence to all financial covenants in its bond resolutions. No such adjustments were required during 2015 or in any prior year.

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OPERATING FINANCIAL PLANNING As part of preparing its operating budget, each year the Authority prepares a multi-year projection of revenues and expenses for airline activities covering the next five years in accordance with the current Airline Use and Lease Agreement, and beyond assuming that the Agreement remains substantially unchanged. The projections for 2016 assumed enplanements would be 1,400,000 which is 8.8% higher than the 2015 projected enplanement levels at the time the budget was developed. If the budget assumptions and activity projections prove to be reasonable, the projected airline cost per enplanement, net of revenue sharing, should approximate $6.50, excluding FBO costs per enplaned passengers, and debt service coverage should be 1.50 (Net Revenues to Net Debt Service calculated under the provisions of the master bond resolution). Certain assumptions are used in determining the projected activity levels and the related projected revenues and expenditures at this Airport and accordingly, subsequent actual results in any one year, or for the entire period, could differ substantially from those projected. Details for these projections are included in the Authority’s adopted $49.1 million 2016 operating budget, which is on the Authority’s web site. CAPITAL FINANCIAL PLANNING A five-year capital improvement program for the years 2010 through 2014 totaled $139.3 million of which $41.5 million was spent through 2014. The $120.5 million 2015-2019 capital improvement program has been approved by the Authority and the County in late 2014. The program consists of $34.5 million for airfield projects, $14.0 million for terminal improvements and expansion, $60.0 million for landside development and $12 million for major equipment and vehicles. Many of the projects therein are dependent on their eligibility for available Federal and State funding, or on the ability of the Authority to issue indebtedness. Therefore, the timing for starting any individual project is dependent upon the Airport’s needs and ability to obtain adequate funding. The largest capital project in the 2015-2019 capital plan is a garage extension during the final year of the plan (2019) should the need for addition airport parking continue to justify the project. All of the Airfield projects, certain terminal projects and major equipment purchases will require future Federal entitlement funding equal to $61.0 million and equal slightly more than 50% of the capital plan funding. The garage expansion would be funded from additional borrowing. All the projects included in the five-year program are designed to meet the objectives as set forth in the Airport’s Master Plan and Safety Improvement Program. All projects have or will be subject to a Federal Environmental Assessment (FEA) pursuant to the National Environmental Policy Act of 1969 (NEPA), as amended, and a New York State Environmental Impact Statement (EIS) under the New York State Environmental Review Act (SEQR). Specific airfield related projects eligible for Federal or State funding support will also be subject to Federal Aviation Administration and New York State Department of Transportation review and approval. The total affect any capital program will have on future operating budgets are evaluated at the time a specific project is authorized by the Authority to be started unless a project is mandated for

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safety or health purposes. All capital projects completed in 2014, or scheduled for completion in 2015, have their projected additional operating costs and related revenues incorporated into the Authority’s 2015 operating budget and project funding in place with no anticipated additional borrowing. The largest project underway in 2014 is an expansion of an Aircraft Maintenance, Repair and Overhaul facility with an estimated cost of $4.2 million. This project is 90% funded by a grant from the State of New York. The Authority has only one project planned and underway with cost in excess of $1 million that is not grant funded and that is a $1.3 project to double the size of the baggage handling room for Southwest Airlines. This project will be completed in 2015 and will increase terminal rental revenue. FISCAL CAPACITY The Authority has the ongoing ability and willingness, as needed, to raise revenues, incur debt, control expenses and meet its financial obligations as they become due. In adopting its 2016 budget, the Authority projected 2016 enplanements would be 1,400,000 or 8.8% above the projected 2015 level due to a new airline and a new destination for another. The Authority has set its rates and charges for 2016 under the Airline Use and Lease Agreement to meet all projected obligations. For 2016, signatory landing fees have been set at $3.31 per 1,000 pounds, an increase from $3.23 budgeted in 2015; apron fees at $1.23 per square foot, a decrease from $1.68 in 2015; and the terminal rental rate at $76.05, an increase from $74.78 per square foot in 2015. As of December 31, 2015, the Authority had $17.7 million in unrestricted funds available which included $9.8 million in an operating and maintenance reserve, more than sufficient to meet two months of operating expenditures totaling $5.9 million, and $7.3 million in its Development fund which can be used to restore a deficiency in any other fund, and $500,000 in an equipment repair & replacement reserve fund. In addition, the Authority has $11.8 million in debt service reserve funds, plus $6.9 million in Passenger Facility Funds on-hand, that when combined, exceeds the total annual debt service principal and estimated interest payments of $13.0 million due in 2016. The Authority does not anticipate experiencing any cash flow deficiencies during 2016 requiring short-term cash flow financing or increases during the year to the rates and charges billed to the Airlines. DEBT CAPACITY The Albany County Airport Authority Act sets the Authority’s debt limit at $285 million. At December 31, 2015, there is $96.8 million of debt outstanding issued directly by the Authority to be reduced by $8.6 million of principal payments during 2015. Debt service coverage was 1.39 for 2015 and is projected to be 1.50 for 2016 based on the adopted budget. In August of 2010 the Authority issued $109.9 million of Series 2010 fixed rate bonds to refund $111.0 million in existing debt, which included $77.7 million in variable rate bonds. Currently the Authority’s entire debt portfolio is fixed rate debt. The Authority has not issued debt to obtain new proceeds since 2006 and has no plans to issue any additional debt during 2016.

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AUTHORITY’S INITIATIVES The Airport moved forward with various activities during 2015 to enhance and maintain the services provided to the airlines, the traveling public, and other uses of the Airport. These initiatives include: The Authority continued to market the air service opportunities to Airlines by attending three

Airline Headquarters Network Planning meetings. The Airport specifically promoted underserved markets.

In 2015 the Authority completed construction on the $4.2 million expansion of an existing Aircraft Maintenance, Repair and Overhaul Facility with state grant funding. The project also helped convince a regional airline to relocate its MRO Operations and associated jobs from Cleveland to Albany and the facility was fully occupied by the end of the year

In 2015 the Authority completed a $1.5 million project to double the size of the Southwest Airlines baggage handling room.

In December 2015 JetBlue began service at Albany offering two new daily flights to Florida from Albany.

During 2015 the Authority continued to control costs and maintained reasonable rates and charges for an airport that provides a high level of services to its airlines including jet bridge maintenance, all janitorial services, waste removal and utilities.

In 2015 the Authority surpassed its adopted budget expectations of $1 million in revenue to share with the Airlines and achieved $3.7 million to be split with the Airlines $1.8 million giving the airlines substantial credit to apply to their 2016 airport charges and $1.8 million for the Authority to put in its Airport Development Fund.

AWARDS FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Authority for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2014. This was the sixteenth consecutive year that the Authority has achieved this prestigious award. In order to receive this award a government unit must publish an easily readable and efficiently organized CAFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that this 2015 CAFR continues to meet the Certificate of Achievement Program’s requirements and will be submitting it to the GFOA to determine its eligibility for a certificate.

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DISTINGUISHED BUDGET PRESENTATION The Government Finance Officers Association of the United States and Canada (GFOA) also has presented an award of Distinguished Presentation to the Authority for its annual budget for 2015. In order to qualify for this award, a governmental unit must publish a budget document judged proficient in several categories including as a policy document, as an operations guide, as a financial plan, and as a communications device. The 2016 budget has been submitted to the GFOA to determine its eligibility for an award. ACKNOWLEDGMENTS It is the strong continuing commitment of the Authority Board to the highest standards of financial reporting, disclosure and professionalism that the preparation of this report has been accomplished and for that we extend our sincere appreciation. We also give credit for the dedication, service and performance by all the employees of the Authority, AvPorts and Million Air-Albany in cooperation with all the employees of the airlines and other tenants located at the Airport for serving all the travelers, users and visitors to the Airport. The preparation of this report on a timely and efficient basis is achieved by the professionalism, efficiency and dedicated services contributed by the entire staff of the Finance Department under the guidance of Margaret Herrmann, Chief Accountant. We wish to express our appreciation for their continuing efforts for maintaining the highest standards of professionalism in managing the financial operations of the Authority in a progressive and responsible manner. It is recognized and a source of pride to the Authority. We also express our specific appreciation to all members of the Finance Department who contributed to assembling and formatting the data included in this report. CERTIFICATION The following sections of this report include the basic financial statements of Authority for the fiscal year ended December 31, 2015 including the Independent Auditor’s Report on the basic financial statements. The Auditor’s Report provides an unqualified opinion. Based on our knowledge the information provided in the basic financial statements is accurate, correct and does not contain any untrue statement of material fact; does not omit any material fact which, if omitted, would cause the basic financial statements to be misleading in light of the circumstances under which such statements are made; and fairly presents in all material respects the financial condition and results of operations of the Authority as of, and for, the periods presented in the basic financial statements. Respectfully submitted: John A. O’Donnell William J. O’Reilly, CPA Chief Executive Officer Chief Financial Officer

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Eighteen non-stop destinations are served from Albany with a total of 60 daily departures

SERVICE PROVIDED BY

Source: Official Airlines Guides Schedules, March 2016

Carrier Departures Seats Departures Seats

American 16 1,174 26.7% 22.8%Cape Air 9 81 15.0% 1.6%Delta 8 738 13.3% 14.3%Jet Blue 2 300 3.3% 5.8%Southwest 15 2,241 25.0% 43.5%United 10 617 16.7% 12.0%

60 5,151 100.0% 100.0%

Daily (March 2016) Percent of TotalDRAFT

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Financial

-

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INDEPENDENT AUDITOR’S REPORT To the Members Albany County Airport Authority Report on the Financial Statements We have audited the accompanying financial statements of the business-type activities and fiduciary funds of the Albany County Airport Authority (the Authority), a component unit of the County of Albany, New York, as of and for the years ended December 31, 2015 and 2014, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the comptroller general of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and fiduciary funds of the Albany County Airport Authority as of December 31, 2015 and 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As discussed in Note 2 to the financial statements, the Authority changed its method of accounting for pensions in 2015 as required by the provisions of GASB Statement Numbers 68 and 71. Our opinion is not modified with respect to that matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, OPEB Trust Schedule of Funding Progress, schedules of proportionate share of net pension liability (asset) and schedule of authority contributions on pages XX through XX and XX be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audits were conducted for the purpose of forming opinions on the financial statements that collectively comprise the Albany County Airport Authority’s basic financial statements. The introductory section on pages XX through XX, the schedules of debt service requirements to maturity and of governmental payments and services on pages XX and XX, the statistical section on pages XX through XX, and the biographies of the Authority’s members and senior staff on pages XX through XX are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The accompanying Schedule of Expenditures of Federal and New York State Department of Transportation Financial Assistance for the year ended December 31, 2015, is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and by the New York State Department of Transportation Preliminary Draft Part 43 of the New York State Codification of Rules and Regulations and are also not a required part of the basic financial statements. The accompanying Schedule of Passenger Facility Charges Collected and Expended for the year ended December 31, 2015, is presented for purposes of additional analysis as specified in the Passenger

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Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration, and is also not a required part of the basic financial statements. The schedule of debt service requirements to maturity, the schedule of government payments and services, the Schedule of Expenditures of Federal and New York State Department of Transportation Financial Assistance, and the Schedule of Passenger Facility Charges Collected and Expended are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section, the statistical section and biographies have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated ________, 2016 on our consideration of the Albany County Airport Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Albany County Airport Authority’s internal control over financial reporting and compliance.

Latham, NY , 2016 DRAFT

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MANAGEMENT’S DISCUSSION AND ANALYSIS

This Management Discussion and Analysis (MD&A) of the Albany County Airport Authority (the Authority) provides an introduction of the basic financial statements for the year ended December 31, 2015 with selected comparative information for the years ended December 31, 2014 and December 31, 2013. Management prepared this unaudited MD&A, which should be read in conjunction with the financial statements, and the notes thereto, which follow in this section. BASIC FINANCIAL STATEMENTS The Authority is a business-type activity and the Authority’s basic financial statements include: the Statements of Net Position, the Statements of Revenues, Expenses and Changes in Net Position and the Statements of Cash Flows. The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America as promulgated by the Governmental Accounting Standards Board (GASB). Also included are the Statements of Fiduciary Fund Net Position; and the Statements of Changes in Fiduciary Fund Net Position for the Authority’s Fiduciary Fund which also has a December 31st year end. The Statements of Net Position depict the Authority’s financial position at December 31, the end of the Authority’s fiscal year. The Statements report all assets, deferred outflows of resources, liabilities, deferred inflows of resources and net position. Net position is displayed in three components: net investment in capital assets, restricted (distinguished between major categories of restrictions) and unrestricted. The Statements of Revenues, Expenses and Changes in Net Position report total operating revenues, operating expenses, non-operating income and expenses, capital contributions and the changes in net position during the fiscal year ending December 31st. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the cash flows. The Statements of Cash Flows present information showing how the Authority’s cash and cash equivalents position changed during the fiscal year. The Statements classify cash receipts and cash payments by Operating Activities, Noncapital Financing Activities, Investing Activities, and Capital and Related Financing Activities. The Statements of Fiduciary Fund Net Position is a snapshot of account balances of the Authority’s fiduciary fund at year-end. It indicates the assets available for future payments for retiree benefits and any current liabilities that are owed at December 31. The Statements of Changes in Fiduciary Fund Net Position, on the other hand, provides a view of current year/period additions to and deductions from the fund. AIRPORT ACTIVITIES HIGHLIGHTS The County of Albany owns the Albany International Airport (the Airport) and entered into an Airport Lease Management Agreement, pursuant to which the County leased the Airport to the Authority for a 40 year term commencing May 16, 1996. The Authority employs two firms to manage the daily operations of the Airport:

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2015 2014 2013Enplanements 1,297,749 1,230,376 1,215,076

% increase/(decrease) 5.5% 1.3% -2.4%

Aircraft Landed Weight (lbs) 1,412,705,423 1,368,073,710 1,408,546,523 % increase/(decrease) 3.3% -2.9% -2.7%

Operations (take-offs and landings)Commercial (inc corporate operations) 43,570 44,362 47,414 General Aviation 13,950 14,614 20,915 Military 2,481 2,316 4,436 Total 60,001 61,292 72,765 % decrease -2.1% -15.8% -3.6%

AFCO AvPorts Management LLC, (d/b/a Avports) manages the daily operations of the airport including airfield, terminal, security, ARFF, landside, building and vehicle maintenance and public parking pursuant to a management services agreement. REW Investments, Inc., (d/b/a Million Air) manages the daily operations of the Fixed Based Operations (FBO) of the airport including fuel farm management, commercial aviation into-plane fueling, and ground handling, fueling and hangaring of general aviation aircraft pursuant to a management services agreement. The Authority’s revenues are derived primarily from: Airline rates and charges for the use of the Airport’s facilities in the form of landing fees, terminal rentals, apron fees and loading bridge charges received from airlines using the Airport; concession fees from vendors serving the passengers including food and beverage, retail and rental cars; public parking fees including surface and garage parking; and FBO activities from general aviation activities. AIRPORT REVENUES Five major factors impact airport revenues: commercial operations, enplanements, FBO operations, concessions and parking: COMMERCIAL OPERATIONS The following shows the major indicators of the total commercial airline activities during the past three years:

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Carriers Flights Carriers Flights Carriers FlightsJet Service

Major Carriers 5 24 4 18 4 17Regional Carriers 7 15 5 15 7 27

Commuter ServiceRegional Carriers 3 16 3 18 4 13Foreign Carriers - - - - - -

Total 15 55 12 51 15 57

2015 20132014

2015 2014 2013Total Available Seats 1,527,294 1,515,179 1,564,489 Passenger Load Factor 85% 81% 78%

Change in Change in Change in Change inOperations Landed Weight Operations Landed Weight

Air Canada - - (734) (6,092,200) American (formerly US Airways) (228) 3,969,536 (404) (15,180,414) Cape Air - 2 (72) (246,602) Delta (644) 19,245,782 (616) 6,647,447 JetBlue 88 6,256,712 - - Southwest (78) (100,000) 40 7,744,000 United 150 16,852,465 (1,912) (33,313,331) Charters (8) (1,592,784) (2) (31,713) Total (720) 44,631,713 (3,700) (40,472,813)

2015 vs. 2014 2014 vs. 2013

2015 2014 2013Mail and Express Cargo Tons 19,373 19,509 18,546

% increase/(decrease) -0.7% 5.2% 1.7%

Regular scheduled daily passenger flights departing from Albany increased to 55 in December 2015 from 51 in December 2014 and decreased from 57 in December 2013. jetBlue began service on December 10, 2015 with two daily departures. Published available seats for 2015 increased by 12,115 while the passenger load factor rose to 85%, resulting in increased enplanements for 2015. The published available seats and the yearly load factors for 2015, 2014 and 2013 is below: Landing fee revenues remain stable even though there is a decreased number of operations and an increase in landed weight. This is due to the agreements with the airlines and cargo carriers which provides for the Signatory Passenger and Cargo Airlines to fund the operating costs of the Airfield after receiving credit for all airfield revenue. The reduction in airline operations and the increased gross landed weight by airline for 2015 compared to 2014 and 2014 compared to 2013 is as follows: As of December 31, 2015, two regularly scheduled express mail and various special cargo carriers serve this Airport.

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2015Market Total 2015 2015 vs. Total 2014 2014 vs. Total 2013Share Enplanements 2014 Enplanements 2013 Enplanements

Air Canada 0.0% - - - (3,436) 3,436 American (formerly US Airways) 21.1% 274,462 6,397 268,065 5,759 262,306 Cape Air 1.2% 16,119 (683) 16,802 50 16,752 Delta 17.4% 225,194 11,705 213,489 17,577 195,912 JetBlue 0.4% 5,492 5,492 - - - Southwest 43.0% 557,183 31,598 525,585 21,490 504,095 United 16.9% 219,299 12,864 206,435 (26,140) 232,575 Total 100.0% 1,297,749 67,373 1,230,376 15,300 1,215,076

2015 vs. 2014 vs.2015 2014 2014 2013 2013

Revenues 8,570,119$ -17.2% 10,348,396$ 7.3% 9,641,415$ Expenses (inc. cost of sales and administration) 7,813,160$ -18.0% 9,524,018$ 3.1% 9,242,038$ Retail Gallons Sold

Jet A 967,345 1.5% 952,761 13.3% 840,570 AvGas 70,438 26.0% 55,902 -7.5% 60,447

Commercial AvGas 173,843 -3.9% 180,845 -1.8% 184,107 Glycol Gallons - Consortium 86,068 -14.3% 100,420 -4.8% 105,459 Glycol Gallons - Sprayed 37,536 -30.5% 54,038 9.3% 49,426 Jet A Fuel Into-Plane Gallons 16,835,885 -0.8% 16,971,830 -0.6% 17,068,920

ENPLANEMENTS Enplanements for 2015 compared to 2014 increased by 67,373 passengers, compared to an increase of 15,300 in 2014 vs. 2013. The changes in enplanements by airline, including their express carriers is as follows:

Further airport and airline data for the past ten years is included in the Statistical Section of this annual report. FBO OPERATIONS REW Investments, Inc. (d/b/a Million Air) manages the daily operations of the FBO. A summary of the operating revenues and expenses, the gallons of Jet A and Aviation Gasoline sold, gallons of glycol sold and sprayed and the Jet A transferred to the commercial and cargo airlines is as follows for 2015, 2014 and 2013:

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2015 vs. 2014 vs.2015 2014 2014 2013 2013

Rental Car RevenuesSales 50,417,217$ 6.0% 47,567,443$ 9.3% 43,515,095$ Authority Revenues 5,053,412$ 4.1% 4,854,354$ 3.7% 4,679,586$

Food & BeverageSales 7,100,827$ 4.6% 6,787,788$ 5.4% 6,442,589$ Authority Revenues 667,539$ -0.5% 670,898$ 1.3% 662,466$

RetailSales 3,009,051$ 4.7% 2,872,790$ 3.8% 2,767,889$ Authority Revenues 707,000$ 0.0% 707,000$ 104.8% 345,183$

Total Authority Concession Revenues 7,268,718$ 3.4% 7,027,934$ 10.0% 6,390,371$ Concession Revenue per Enplanement 5.60$ -1.9% 5.71$ 8.6% 5.26$

CONCESSIONS Concession revenues for 2015 were $7,268,718, a 3.4% increase from 2014. Higher rental car sales accounted for this increase in revenues. Concession revenues for 2014 were 10.0% higher than revenues in 2013 due to a new retail concession agreement with a higher minimum annual guarantee. Concession revenue highlights for 2015 compared to 2014 and 2013 are as follows:

PARKING The Airport directly manages all on-airport parking operations which at December 31, 2015 consisted of 222 short-term garage/surface, 1,912 long-term garage, 1,468 long-term surface, and 2,283 remote shuttle served parking spaces. Revenue for 2015 compared to 2014 and 2013 are as follows:

2015 vs. 2014 vs.2015 2014 2014 2013 2013

Public ParkingRevenues 12,810,052$ 13.2% 11,311,640$ 5.5% 10,724,464$ # of Vehicles Parked 618,304 1.0% 611,912 0.7% 607,507 Parking Revenue per Enplanement 9.87$ 7.4% 9.19$ 4.2% 8.83$

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2015 2014 2013

Operating revenues 44,141,730$ 43,594,084$ 42,215,283$

Operating expenses (31,370,311) (32,323,550) (31,661,110)

Revenues in excess of expenses

before depreciation 12,771,419 11,270,534 10,554,173

Depreciation (13,893,673) (13,957,515) (13,716,881)

Loss before non-operating income

and expenses (1,122,254) (2,686,981) (3,162,708)

Non-operating income and (expenses), net 188,080 (510,565) (899,097)

Loss before capital contributions (934,174) (3,197,546) (4,061,805)

Capital contributions 8,942,652 6,414,378 4,009,502

Net position

Increase (decrease) in net position 8,008,478 3,216,832 (52,303)

Total net position, beginning of year 199,845,370 196,628,538 196,680,841

Cumulative change in accounting principle (926) - -

Total net position, end of year 207,852,922$ 199,845,370$ 196,628,538$

2015 2014 2013FBO revenues 8,570,119$ 10,348,396$ 9,641,415$ FBO expenses 7,813,160 9,524,018 9,242,038 FBO net revenues 756,959$ 824,378$ 399,377$

SUMMARY OF REVENUES, EXPENSES AND CHANGES IN NET POSITION The changes in net position over time may serve as a useful indicator of changes in the Authority’s financial position. A summary of the Authority’s change in net position at December 31 is set forth below:

The Authority’s operating revenues and expenses include the sales and cost of sales of fuel purchased and sold to general aviation customers through the FBO and also revenues for deicing activities. Average weekly jet fuel sales prices were $5.59, $5.63 and $4.43 in 2013 to 2015, respectively. Gallons of jet fuel sold were 840,570, 952,761, and 967,345 in 2013 to 2015. The FBO provides fueling services for all commercial airlines at the Airport. Some of the airlines provide their own aircraft deicing services. Accordingly, commercial aircraft deicing service revenue is sensitive to both demand for services and need for services based upon weather conditions. The total gallons of sprayed deicing services delivered in 2013 through 2015 were 49,426, 54,038 and 37,536 gallons. The table below summarizes FBO revenues, expenses and net revenues:

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2015 2014 2013Operating Revenues

Airfield 6,412,351$ 6,320,065$ 6,382,280$ Fixed Based Operations 8,570,119 10,348,396 9,641,415 Terminal 4,950,470 4,816,946 5,146,616 Ground Transportation 13,089,872 11,575,593 10,998,265 Concessions 7,268,718 7,027,934 6,390,371 Other 3,850,200 3,505,150 3,656,336

Non-Operating IncomePassenger Facility Charges 5,080,183 4,777,691 4,693,348 Grant Income 292,000 292,938 366,420 Improvement Charges 368,400 368,400 368,400 Interest Income 20,739 54,043 84,959

Total 49,903,052$ 49,087,156$ 47,728,410$ Percentage of Increase/(Decrease) 1.7% 2.8% -1.3%

Airfield14.5% Fixed Based

Operations19.4%

Terminal11.2%

Ground Transportation

29.7%

Concessions16.5%

Other8.7%

OPERATING REVENUES AND NON-OPERATING INCOME HIGHLIGHTS Total revenues for 2015 were $0.8 million or 1.7% greater than 2014 and $2.2 million or 4.4% greater than 2013. Airfield revenues have remained fairly constant since 2013. Fixed based operations decreased due the decrease in jet fuel prices and a decrease in deicing revenues. Terminal revenues have remained stable since 2013. Ground Transportation revenues increased due to higher enplanements and parking rate increases during 2015. Concession revenues have increased over 2013 due to a new retail concession agreement with the retail operator which has a higher minimum annual guarantee and an increase in advertising revenues. Other revenues have increased since 2013 due to an increase in hangar rentals, scrap sales and miscellaneous income. Under the signatory airline use and lease agreement, the airfield is a “residual cost center” requiring signatory airlines to pay the residual cost after all airfield and certain non-airfield revenues allocable to the airfield have been applied which include all interest income and PFCs applicable to airfield related debt service. Accordingly airfield revenues are sensitive to airfield cost, interest earnings, PFC revenues applied to airfield debt service, and the amount of airfield debt service. The terminal revenue is sensitive to the amount of rented space and terminal operating costs used to determine the annual rental rate. FBO revenues are sensitive to the price of purchased fuel and the volume of fuel sold. Ground transportation revenue is sensitive to airline passenger activity. Concession and Other revenue are based upon passenger and other activity but are generally reinforced with minimum annual revenue guarantees and property leases. Airfield revenues are sensitive to airfield operating cost because the revenue center is a residual cost center. Variations in airfield revenue from year to year reflect variations in cost which are impacted by variations in the cost of snow removal and maintenance required based upon conditions that change from year to year. The signatory landing fee rate is also sensitive the volume of landed weight in any given year and its allocation to signatory airlines and other aircraft.

Allocation of 2015 Operating Revenues by Category

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2015 2014 2013Operating Expenses

Personal services 9,250,876$ 9,100,944$ 8,995,707$ Employee benefits 4,268,547 4,274,204 4,390,243 Utilities & communications 2,403,839 2,359,863 2,378,426 Purchased services 5,268,213 5,140,478 5,084,864 Material & supplies 8,684,849 10,335,716 9,844,397 Administration 1,104,200 1,016,302 954,677 Non-capital equipment 389,787 96,043 12,800

Depreciation 13,893,673 13,957,515 13,716,881 Non-Operating Expenses

Interest 5,463,254 5,870,629 6,255,548 Amortization of Bond insurance premiums 109,988 133,008 156,676

Total 50,837,226$ 52,284,702$ 51,790,219$ Percentage of Increase/(Decrease) -2.8% 1.0% 1.3%

OPERATING EXPENSES AND NON-OPERATING EXPENSES HIGHLIGHTS Total 2015 expenses decreased $1.4 million or 2.8% as compared to 2014. Operating expenses decreased $1.0 million or 1.8% from 2013. The decrease in 2015 was due to lower FBO expenses for the purchase of fuel for resale; which resulted in lower revenues.

Allocation of 2015 Operating Expenses by Category

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2015 2014 2013ASSETS

Capital assets 260,437,317$ 262,083,471$ 267,412,981$ Other assets 46,136,395 44,997,624 43,021,590

Total Assets 306,573,712 307,081,095 310,434,571

DEFERRED OUTFLOWS OF RESOURCES 7,200,940 8,430,183 10,252,794

LIABILITIESCurrent (payable from unrestricted assets) 4,927,890 5,474,919 4,910,044 Current (payable from restricted assets) 9,733,622 9,732,523 9,120,395 Noncurrent liabilities 90,371,497 99,669,785 108,880,722

Total Liabilities 105,033,009 114,877,227 122,911,161

DEFERRED INFLOWS OF RESOURCES 888,721 788,681 1,147,666

NET POSITIONNet investment in capital assets 171,751,795 167,432,611 165,997,945 Restricted 19,387,387 17,573,958 17,049,812 Unrestricted 16,713,740 14,838,801 13,580,781

Net Position 207,852,922$ 199,845,370$ 196,628,538$

FINANCIAL POSITION SUMMARY The Statements of Net Position depict the Authority’s financial position as of one point in time – December 31 – and reflects the residual difference between all assets, deferred outflows of resources, liabilities and deferred inflows of resources of the Authority. Net position represents the residual interest in the Authority’s assets after deducting liabilities. The Authority’s net position was $207.9 million at December 31, 2015, a $8.0 million increase from December 31, 2014. A condensed summary of the Authority’s total net position at December 31 is set forth below:

Net position is comprised of three components as follows: Investment in capital assets (e.g., land, buildings, improvements, and equipment), less the related indebtedness outstanding used to acquire those capital assets, represents the largest portion of the Authority’s net position (82.7% at December 31, 2015). The Authority uses these capital assets to provide services to the airlines, passengers and to service providers and users located at the Airport; consequently, these assets are not available for future spending. Although the Authority’s investment in capital assets is net of related debt, the resources required to repay this debt annually are paid from operations, since it is unlikely that the capital assets will be liquidated to pay liabilities. Restricted net position (9.3% at December 31, 2015), principally representing bond reserves and PFC funds, are restricted as to use pursuant to bond resolutions and Federal regulations. The restricted component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

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2015 2014 2013Landing Fees (per 1,000 lbs. MGLW) 3.25$ 3.06$ 2.92$ Terminal Rental Rate (per square foot) 74.31$ 68.13$ 66.56$ Apron Fees (per square foot) 1.52$ 1.59$ 1.58$ Loading Bridge (annual rate) 44,562$ 31,284$ 31,445$ Airline Cost per Enplanement 7.05$ 7.22$ 7.60$ Revenue Sharing Credit 1,779,147$ 1,662,803$ 1,427,220$

Unrestricted net position totaling $16.7 million (8.0% at December 31, 2015) are available to meet any of the Authority’s ongoing obligations. The unrestricted component of net position is the net amount of the assets, deferred outflows of resources, liabilities and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. AIRLINE SIGNATORY RATES AND CHARGES The Authority and airlines entered into a Use and Lease Agreement (“Agreement”) effective January 1, 2006 for five years, with an option for a five-year renewal, which establishes how the airlines that signed the Agreement will be assessed annual rates and charges for their use of the Airport. In the Agreement, signatory airlines have the option to designate some or all of their affiliate carriers as signatory airlines. This entitles the affiliates to signatory rates and charges for use of the Airport. As of December 31, 2015, signatories in the Agreement include five commercial, twelve affiliate carriers and two cargo airlines. The Agreement with the signatory airlines is based on a hybrid rates and charges methodology. A residual cost methodology is used for the airfield and a commercial rental rate methodology for the terminal. The apron charge is based on a 10% allocation of total airfield costs and loading bridge rental rates is based on total actual operating costs for all the loading bridges. The resulting funds remaining each year are split fifty/fifty between the Authority and the signatory airlines. Each year the Authority prepares and issues an actual airline rates and charges analysis report in accordance with the Agreement and financial statements prepared in accordance with GAAP as audited by independent public accountants as of December 31. The Authority has the ability under the Agreement to adjust airline rates and charges at any time throughout the year to ensure adherence to all financial covenants in its bond resolutions, namely “Extraordinary Coverage Protection”, if necessary. The Authority can also impose a “Capital Charge Coverage” equal to 25% of its required debt service. Capital Charge Coverage provides for revenues less expenses, to be not less than one-hundred twenty-five percent (125%) of annual debt service. The final rates and charges, after all year-end settlement adjustments and the revenue sharing allocations in accordance with the definitions and formulas contained in the Agreement with the signatory airlines are as follows:

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2015 2014 2013Cash flows from (used):

Operating activities 11,790,097$ 12,068,189$ 10,756,900$ Noncapital financing activities 292,000 292,938 366,420 Investing activities 32,427 63,300 94,349 Capital and related financing activities (9,883,169) (11,908,277) (11,966,930)

Net increase/(decrease) in cash 2,231,355 516,150 (749,261)

Beginning of period 37,907,189 37,391,039 38,140,300 End of period 40,138,544$ 37,907,189$ 37,391,039$

2015 2014 2013Funds available for unrestricted operations 17,654,367$ 16,759,824$ 14,704,149$ Restricted for:

Capital projects 2,774,677 3,209,004 4,879,518 PFCs available for debt service payments 6,929,341 5,271,588 4,730,147 Revenue bond reserves 11,694,581 11,682,648 11,734,115 Other restrictions 1,085,578 984,125 1,343,110

Total 40,138,544$ 37,907,189$ 37,391,039$

CASH MANAGEMENT POLICIES AND CASH FLOW ACTIVITIES All cash receipts are initially deposited daily into collateralized or insured bank accounts. After initial deposit of receipts, all funds are transferred to various segregated bank accounts comprising the various funds defined in the Authority’s Master Bond Resolution. The Authority’s temporarily idle cash is maintained in collateralized or insured bank accounts consistent with the Authority’s liquidity, available short-term investment opportunities, and desired level of risk. The Authority’s maintains some debt service reserves in United States Treasury obligations. All deposits and investments are in compliance with the laws of the State and the Cash Management and Investment Policy adopted by the Authority. Additional information about cash and investments can found under “Note 3 – Cash, Cash Equivalents and Investments” in the Notes to the Financial Statements. Cash equivalents represent cash-on-hand, bank deposits and liquid investments with a maturity of three months or less. The following shows a summary of the major sources and uses of cash and cash equivalents for 2015, 2014 and 2013: The Authority’s available cash and cash equivalents increased in 2015 by $2,231,355 primarily due to the positive flow of funds from operating activities offset by capital construction and debt service funds net of capital funds and PFCs received. Cash and cash equivalents are composed of:

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Total 2015- Total 2015-2019 Plan 12-31-15 Activity

Approved ProjectsAirfield 34,520,000$ 5,333,514$ Terminal 14,000,000 4,149,195 Landside 60,000,000 8,559,100 Major Equipment 12,000,000 1,518,880 Total 120,520,000$ 19,560,689$

Projected Funding SourcesFederal Funds 61,020,000$ 11,334,925$ State Funds 6,250,000 4,292,824 Debt Issuances 34,500,000 - Authority Funds 18,750,000 3,932,940 Total 120,520,000$ 19,560,689$

CAPITAL ACTIVITIES The enabling legislation creating the Authority set forth that every five years the Authority must submit to the County legislature for approval a capital plan for the subsequent five year period. The plan for 2011 – 2019 was approved by the County on December 1, 2014. The plan provides for total spending of up to $120.5 million over five years of which $61 million is eligible for 95% grant funding. Much of the remainder is contingent upon economic development opportunities materializing, which there can be no assurance of, and the projects are therefore deferred. The plan does not represent a firm commitment of the Authority. The Authority has included every known possible project that could conceivably occur during the five year period for disclosure purposes. As of this date, the Authority has no plans to issue additional debt and there is no assurance that future Federal or State grant funds will be awarded to the Authority. At December 31, 2015, the Authority has $2.0 million outstanding capital commitments. Approved Projects requiring additional financing in the plan are very likely to be deferred. The following is a summary of the approved 2015 – 2019 capital plan including the activity through December 31, 2015: Additional information about capital assets can be found under “Note 7 – Capital Assets” in the Notes to the Financial Statements. LONG-TERM DEBT ADMINISTRATION The Authority issued Airport Revenue Bonds to provide funds for the acquisition and construction of major capital facilities. Airport Revenue Bonds are direct obligations and are pledges by the full faith and credit of the Authority. Certain outstanding bonds may be redeemed prior to their normal maturity dates in accordance with the terms of the related bond indentures. The Authority has never defaulted on any principal or interest payments. The Authority’s limit for Debt Obligations was increased from $175 million to $285 million during 2004 by State legislation enacted (Chapter 500), amending the Albany County Airport Authority Act, Title 32 of Article 8, of the New York State Public Authorities Law. The total Authority principal debt outstanding at December 31, 2015 for General Airport Revenue Bonds (GARB) was $96,783,000 compared to $105,049,000 at

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Original Par Outstanding OutstandingAuthority Revenue Bonds/Debt Obligations Amount Issue at 12-31-14 at 12-31-15

Series 1999 NYS EFC 7,895,303$ 2,359,000$ 1,958,000$ Series 2003 A GARB 8,885,000 3,365,000 3,030,000 Series 2006 A & B GARB 14,230,000 10,090,000 9,455,000 Series 2006 C GARB 6,330,000 5,345,000 5,180,000 Series 2010 A & B 109,855,000 83,890,000 77,160,000

Total Authority Debt Obligations 147,583,619$ 105,049,000$ 96,783,000$

Outstanding Outstandingat 12-31-14 Additions Deletions at 12-31-15

Authority Revenue Bonds/Debt ObligationsBonds Payable

Series 1999 NYS EFC 2,359,000$ -$ (401,000)$ 1,958,000$ Series 2003 A GARB 3,365,000 - (335,000) 3,030,000 Series 2006 A & B GARB 10,090,000 - (635,000) 9,455,000 Series 2006 C GARB 5,345,000 - (165,000) 5,180,000 Series 2010 A Refunding 83,005,000 - (5,845,000) 77,160,000 Series 2010 B Refunding 885,000 - (885,000) -

Total Bonds Payable 105,049,000 - (8,266,000) 96,783,000Deferred Loss on Refunding (7,666,565) - 1,507,512 (6,159,053) Unamortized Premiums/Discounts (net) 2,886,785 - (731,288) 2,155,497

Net Bonds Payable 100,269,220 - (7,489,776) 92,779,444

December 31, 2014. Specific details on all the outstanding debt issues are in Note 8 to the financial statements of this report. The aggregate par amount of bonds issued by the Authority and bond related debt owed to the County of Albany outstanding as of December 31, 2014 and 2015 is summarized in the following table: The table above provides a comparison of the current amounts of bonds and debt outstanding to the original amounts issued for project financing and reveals the aggregate amount of bonds and debt obligations outstanding declined by $8.3 million during 2015. In the table above, the bonds and debt obligation are presented on a stated par-amount basis. Under generally accepted accounting principles certain items associated with the debts above are deferred and amortized into future periods by subtracting or adding the deferred items to the stated par amounts outstanding and expensing those deferred items in future periods as the debt matures using a systematic and rational method that conforms with generally accepted accounting described in Note 2 and Note 8 to the Financial Statements. The reported amount of bonds issued by the Authority that was outstanding as of December 31, 2014, additions and/or deletions during 2015, and the balances reported at December 31, 2015 with adjustments to the reported value required by generally accepted accounting principles is summarized in the following table:

At December 31, 2015 the Authority maintained debt service reserve funds in the amount of $11.8 million and Passenger Facility Charge Funds in the amount of $6.9 million, both of which are restricted to repayment of debt. Thus, the Authority’s direct obligations outstanding, net of funds restricted for the repayment of debt, was $76.1 million in aggregate par amount of bonds outstanding. Additional information about the long-term Indebtedness can found under “Note 8 – Long-Term Indebtedness” in the Notes to the Financial Statements.

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2016 12,958,069$ 2023 9,883,406$ 2030 1,260,987$ 2017 12,976,697 2024 9,776,087 2031 536,325 2018 12,972,472 2025 9,774,313 2032 537,050 2019 10,562,996 2026 9,780,463 2033 540,237 2020 9,863,550 2027 1,264,638 2034 402,250 2021 9,869,993 2028 1,272,987 2035 399,000 2022 9,878,012 2029 1,258,412

Year/Debt Service

The graph and table below presents combined annual debt service to maturity as of December 31, 2015:

PASSENGER FACILITY CHARGE (PFC) The Authority initially received approval from the FAA to impose a PFC of $3.00 per enplaned passenger beginning March 1, 1994, not to exceed $40,726,364, principally to finance the Terminal Improvement Program. During 1996, the Authority requested and received approval to increase the amount of PFCs to $116,888,308 to be collected through the year 2022. Effective September 1, 2009, the Authority implemented an approved change in the PFC collection from $3.00 per passenger to $4.50 per passenger, with a current estimated collection period through 2020. Through December 31, 2015, the Authority has collected PFCs, including interest earnings thereon, totaling $87,589,502, or 74.9% of the total authorized. Passengers pay PFCs on the first two and last two portions of any trip. No PFCs are collected from non-revenue passengers such as a passenger using a frequent flier award ticket. The Authority calculates that it is collecting PFCs on approximately 91.0% of its enplanements. Additional information about PFC activity

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Moody's/Fitch/S&P Moody's/Fitch/S&PSeries * Bond Insurer Enhanced Rating Underlying Rating

Series 2010A AGMC A2/NR/AA A3/A-/BBB+Series 2010B AGMC A2/NR/AA A3/A-/BBB+

2006C AGMC A2/NR/NR A3/A-/NR2006B AGMC A2/NR/AA A3/A-/BBB+2006A AGMC A2/NR/AA A3/A-/BBB+2003A AGMC A2/NR/AA A3/A-/BBB+

* Not all maturities within a Series are insured.NR = Not Rated

can found under “Note 2 – Summary of Significant Accounting Policies” in the Notes to the Financial Statements. CREDIT RATINGS AND BOND INSURANCE

The ratings on the Authority’s General Airport Revenue Bonds outstanding are enhanced by municipal bond insurance. Bond insurance policies in effect were issued by Assured Guaranty Municipal Corporation (AGMC). The table below presents the enhanced and underlying ratings on each of the Authority’s outstanding bonds. Fitch Ratings has withdrawn its insured rating of all bonds insured by AGMC effective February 25, 2010. Moody’s lowered their rating of AGMC from “A3” to “A2” on January 17, 2013. Standard and Poor’s upgraded their enhanced rating of AGMC from “AA-” to “AA” on March 18, 2014. The Authority’s underlying credit ratings remained unchanged during 2015 and are: Moody’s Investors Service “A2”, Fitch Ratings “A-” and Standard and Poor’s “BBB+”. RESERVES AND DEBT SERVICE COVERAGE Under the Authority’s master bond resolution adopted in 1997, it is required to maintain an operating reserve equal to two months operating expenses. At December 31, 2015 the reserve requirement was $5.7 million and for which the Authority had $9.8 million on hand. The Authority also had $7.3 million in its airport Development Fund which can be used to restore a deficiency in any other fund and it had a repair and replacement reserve fund of $500,000. Also provided for in the bond resolution for each bond issue, the Authority maintains debt service reserve funds. As of December 31, 2015 the debt service reserve funds totaled $11.8 million. Under the master bond resolution, the Authority calculates the bonded debt service coverage ratio based upon the ratio of net revenues, excluding PFC applied to Debt Service, after payment of operating expenses, to debt service to be funded net of PFCs applied to debt service. For 2015 the bonded debt service coverage ratio was 1.39 compared to 1.36 and 1.26 in 2014 and 2013, respectively.

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FINANCIAL STATEMENTS The Authority’s financial statements are prepared on an accrual basis of accounting in accordance with generally accepted accounting principles promulgated by the Governmental Accounting Standards Board (GASB). The Authority operates as a single enterprise fund with revenues recognized when earned, not when received. Expenses are recognized when incurred, not when they are paid. Capital assets are capitalized and (except land) are depreciated over their estimated useful lives. Certain funds are reported as restricted based upon constraints placed on their use by contributors, grantors and debt covenants. See the Notes to the Financial Statements for a summary of the Authority’s significant accounting policies. REQUEST FOR INFORMATION This Comprehensive Annual Financial Report is designed to provide detailed information on the Authority’s operations and to the Authority’s Board, management, investors, creditors, customers and all others with an interest in the Authority’s financial affairs and to demonstrate the Authority’s accountability for the assets it controls and the funds it receives and expends. Questions concerning any of the information provided in this report or any request for additional information should be addressed to the Chief Financial Officer by e-mail: [email protected] or in writing to, Albany County Airport Authority, Administration Building, Suite 204, Albany, NY 12211-1057. Respectfully submitted, William J. O’Reilly, CPA Chief Financial Officer

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December 31, 2015 December 31, 2014ASSETS

CURRENT ASSETSUnrestricted Assets:

Cash and cash equivalents 17,654,367$ 16,759,824$ Accounts receivable - net 1,930,809 2,002,554 Due from County of Albany 292,593 114,074 Prepaid expenses 891,351 960,743

Total Unrestricted Assets 20,769,120 19,837,195

Restricted Assets:Capital Funds:

Cash and cash equivalents 2,774,677 3,209,004 Grant funds receivable 1,644,897 2,911,704

Passenger Facility Charge Funds:Cash and cash equivalents 6,929,341 5,271,588 Passenger Facility Charges receivable 474,748 345,637

Revenue Bond Funds:Cash and cash equivalents 11,694,581 11,682,648 Investments 277,389 277,389 Accrued interest receivable 1,809 1,809

ANCLUC Funds:Cash and cash equivalents 196,857 196,778

Concession Improvement Funds:Cash and cash equivalents 888,721 787,347

Total Restricted Assets 24,883,020 24,683,904

Total Current Assets 45,652,140 44,521,099

NON-CURRENT ASSETSNet Assets held in trust for OPEB 181,976 158,811 Prepaid expenses 302,279 317,714 Capital Assets:

Land and easements 48,005,527 48,005,527 Buildings, improvements and equipment,

net of depreciation 200,515,156 205,071,801 Construction in progress 11,916,634 9,006,143

Total Capital Assets 260,437,317 262,083,471 Total Non-Current Assets 260,921,572 262,559,996

Total Assets 306,573,712 307,081,095

DEFERRED OUTFLOWS OF RESOURCESRefunding 6,159,053 7,666,565 Bond Insurance Premiums 653,632 763,618 Pension Expenses 388,255 -

Total Deferred Outflows of Resources 7,200,940 8,430,183

The accompanying notes are an integral part of these financial statements

Albany County Airport AuthorityStatements of Net Position

As of December 31, 2015 and December 31, 2014

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December 31, 2015 December 31, 2014LIABILITIES AND NET POSITION

CURRENT LIABILITIESPayable from Unrestriced Assets:

Accounts payable 537,546$ 593,595$ Accrued expenses 4,390,344 4,881,324

Total Payable from Unrestricted Assets 4,927,890 5,474,919

Payable from Restricted Assets:Construction contracts payable 433,722 866,093 Construction contract retainages 545,562 399,873 Accrued interest payable 187,338 200,557 Current maturities of long - term debt 8,567,000 8,266,000

Total Payable From Restricted Assets 9,733,622 9,732,523

Total Current Liabilities 14,661,512 15,207,442

NON-CURRENT LIABILITIESBonds and other debt obligations 90,371,497 99,669,785

Total Non-Current Liabilities 90,371,497 99,669,785

Total Liabilities 105,033,009 114,877,227

DEFERRED INFLOWS OF RESOURCESDeferred ANCLUC funds - 1,334 Deferred Concession Improvement funds 888,721 787,347

Total Deferred Inflows of Resources 888,721 788,681

NET POSITIONNet investment in capital assets 171,751,795 167,432,611

Restricted:Bond reserve funds 11,786,441 11,761,289 Passenger facility charge funds 7,404,089 5,617,225 Other restricted funds 196,857 195,444 Total Restricted: 19,387,387 17,573,958

Unrestricted 16,713,740 14,838,801

Net Position 207,852,922 199,845,370


Albany County Airport AuthorityStatements of Net Position


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Albany County Airport AuthorityStatements of Revenues, Expenses and Changes in Net Position

For the Years Ended December 31, 2015 and December 31, 2014

December 31, 2015 December 31, 2014Operating Revenues

Airfield 6,412,351$ 6,320,065$ Fixed Based Operations 8,570,119 10,348,396 Terminal 4,950,470 4,816,946 Concessions 7,268,718 7,027,934 Ground transportation 13,089,872 11,575,593 Other revenue 3,850,200 3,505,150 Total Operating Revenues 44,141,730 43,594,084

Operating ExpensesAirfield 2,588,916 2,695,123 Fixed Based Operations 7,147,195 8,837,295 Terminal 4,857,303 4,617,968 Loading bridges 327,047 191,595 Landside 4,508,757 4,397,531 Public safety 3,284,919 3,267,441 Aircraft Rescue and Fire Fighting 1,759,315 1,763,637 Vehicle maintenance 1,411,109 1,243,600 Administration 5,485,750 5,309,360 Total Operating Expenses 31,370,311 32,323,550

Revenues in excess of expenses before depreciation 12,771,419 11,270,534

Depreciation 13,893,673 13,957,515

Income/(Loss) Before Non-Operating Income and Expenses (1,122,254) (2,686,981)

Non-Operating Income and (Expenses)Passenger Facility Charges 5,080,183 4,777,691 Grant income 292,000 292,938 Improvement charges 368,400 368,400 Interest income 20,739 54,043 Interest expense (5,463,254) (5,870,629) Amortization of bond insurance premiums (109,988) (133,008) Total Non-Operating Income and (Expenses) 188,080 (510,565)

Income/(Loss) before Capital Contributions (934,174) (3,197,546)

Capital Contributions 8,942,652 6,414,378

Net PositionIncrease in Net Position 8,008,478 3,216,832

Net Position, Beginning of Year, as previously reported 199,845,370 196,628,538 Cumulative change in accounting principle (926) - Net Position, Beginning of Year, as restated 199,844,444 196,628,538

Net Position, End of Year 207,852,922$ 199,845,370$


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Albany County Airport AuthorityStatements of Cash Flows


December 31, 2015 December 31, 2014Cash Flows From Operating Activities

Cash received from providing services 44,213,475$ 43,862,468$ Cash paid to suppliers (31,279,797) (30,679,673) Cash paid to employees (1,143,581) (1,114,606)

Net Cash Provided By Operating Activities 11,790,097 12,068,189

Cash Flows From Noncapital Financing ActivitiesGrant income 292,000 292,938

Net Cash Provided By Noncapital Financing Activities 292,000 292,938

Cash Flows From Investing ActivitiesInterest received 20,739 54,043 Interest on passenger facility charges 11,688 9,257

Net Cash Provided by Investing Activities 32,427 63,300

Cash Flows From Capital and Related Financing ActivitiesPurchase of property and equipment (12,534,202) (8,249,851) Principal payments made on bonds and notes payable (8,266,000) (8,102,182) Interest paid (4,700,250) (5,136,989) ANCLUC funds (1,334) 395 Concession improvement funds 101,374 (359,380) Improvement charges 368,400 368,400 Contributed capital 10,209,459 4,826,042 Passenger facility charges 4,939,384 4,745,288

Net Cash Used By Capital and Related Financing Activities (9,883,169) (11,908,277)

Net Increase in cash and cash equivalents 2,231,355 516,150

Cash and cash equivalents, beginning of year 37,907,189 37,391,039

Cash and cash equivalents, end of year 40,138,544$ 37,907,189$

Reconciliation of Operating Loss to Net Cash Provided By Operating Activities:Income/(Loss) before non-operating income and expenses (1,122,254)$ (2,686,981)$ Adjustments to reconcile loss from operations to net cash provided by operating activities:

Depreciation 13,893,673 13,957,515 Decrease (Increase) in assets: Accounts receivable 71,745 268,384 Due from County of Albany (178,519) 110,276 Net Assets held in trust for OPEB (23,165) (11,801) Prepaid expenses 84,827 (215,261) Deferred Pension Expenses (389,181) - Increase (Decrease) in liabilities: Accounts payable and accrued expenses (547,029) 646,057

Net Cash Provided By Operating Activities 11,790,097$ 12,068,189$


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December 31, 2015 December 31, 2014

ASSETSCash and cash equivalents 1,812,329$ 1,707,380$

Total Assets 1,812,329 1,707,380

DEFERRED OUTFLOWS OF RESOURCES - - Total Deferred Outflows of Resources - -

LIABILITIES - - Total Liabilities - -

DEFERRED INFLOWS OF RESOURCES - - Total Deferred Inflows of Resources - -

NET POSITIONNet Position - Restricted for OPEB 1,812,329$ 1,707,380$

Albany County Airport Authority OPEB TrustStatements of Fiduciary Fund Net Position



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December 31, 2015 December 31, 2014Additions to Net Position Attributed to:

ContributionsEmployer 103,237$ 110,145$ Interest Income 1,712 1,736

Total Additions 104,949 111,881

Deductions from Net Position Attributed to:Retirement benefits - - Administrative expenses - -

Total Deductions - -

Increase in Net Position 104,949 111,881

Net Position - Restricted for OPEB, Beginning of Year 1,707,380 1,595,499

Net Position - Restricted for OPEB, End of Year 1,812,329$ 1,707,380$

Albany County Airport Authority OPEB TrustStatements of Changes in Fiduciary Fund Net Position



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Albany County Airport Authority Notes to Financial Statements

Note Page 1 Organization and Reporting Entity ................................ 43 2 Summary of Significant Accounting Policies .................. 44 3 Cash, Cash Equivalents and Investments ..................... 49 4 Receivables ................................................................... 50 5 ANCLUC Funds ............................................................. 50 6 Due From County of Albany ........................................... 50 7 Capital Assets ................................................................ 51 8 Long-Term Indebtedness ............................................... 51 9 Capital Contributions and Net Position .......................... 61 10 Airline Lease and Use Agreements ................................ 62 11 Airport Tenant Agreements ............................................ 62 12 Pension Plan .................................................................. 63 13 Other Post Employment Benefits (OPEB) ...................... 64 14 Risk Management .......................................................... 65 15 Commitments and Contingencies .................................. 66

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Notes to Financial Statements

December 31, 2015 and December 31, 2014

NOTE 1 - Organization and Reporting Entity Organization: The Albany County Airport Authority (Authority), a body corporate and politic, constituting a public benefit corporation, was established by the State of New York (State) August 4, 1993, pursuant to the provisions of Chapter 686 of the Laws of 1993 as set forth in Title 32 of the State’s Public Authorities Law. As a public benefit corporation, the Authority is independent, distinct from, and not an agent of the State or any other of the State’s political subdivisions, including the County of Albany (County). The Authority consists of seven members, four appointed by the majority leader of the County Legislature and three by the County Executive, who jointly designate one of the seven members as chairperson, and all with approval of the County Legislature. The Authority members serve for a term of four years or until their successor is appointed, except that any person appointed to fill a vacancy will be appointed to serve only the unexpired term. Members of the Authority are eligible for reappointment. On March 15, 1994, the Authority and the County entered into an Interim Agreement, whereby the County granted, and the Authority accepted, sole possession, use, occupancy and management of the Albany International Airport (Airport), including all rights, interest, powers, privileges and other benefits in each and every contract relating to the maintenance, operation, leasing, management or construction of the Airport, and all other rights, privileges or entitlement necessary to continue to use, operate and develop the Airport. The Authority and the County entered into a permanent Airport Lease Agreement, dated December 5, 1995, which upon its approval by the Federal Aviation Administration (FAA) became effective on May 16, 1996 for a term of forty (40) years, whereby the Authority has the exclusive right to operate, maintain and improve the Airport and do anything else permitted by law, subject only to the restrictions and conditions stated in such Airport Lease Agreement and in accordance with applicable Federal, State and local laws. Pursuant to the State enabling Legislation, the Authority may not undertake any capital project (see Note 15), other than the redevelopment project described in the enabling legislation, known as the Terminal Improvement Program, unless the project has first been approved by the County as part of a five-year Capital Improvement Program. For these purposes, the term “capital project” is defined as the construction, reconstruction or acquisition of airport or aviation facilities. Prior to March 15, 1994, the Airport operated as a fund of the County. As of March 15, 1994 the County transferred the use of all assets and substantially all liabilities of the County’s Airport Enterprise Fund to the Authority. These assets and liabilities were recorded by the Authority at a Net Asset value equal to $46,824,500.

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The Authority is not subject to Federal, State or local income, property or sales taxes, except for property taxes due on properties acquired by the Authority until they are removed from the tax rolls as of the next assessment date. However, the Authority may agree to make certain payments in lieu of taxes for real property owned or used by the Authority for purposes other than public aviation purposes and under other limited circumstances. The Authority has contracted with AFCO AvPorts Management LLC, (d/b/a Avports), to manage the daily operations of the airport under a three year term expiring December 31, 2018. The Authority has also contracted with REW Investments, Inc., (d/b/a Million Air), to manage the fixed based operations of the airport under a five year term expiring August 31, 2016. Both agreements are renewable with the approval of both parties. Reporting Entity: The Authority meets the criteria set forth in generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB) for inclusion as a component unit within the County’s basic financial statements based on the County’s responsibility for the appointment of the Authority members, and their approval of capital programs and certain debt issuances. As such, the Authority is included in the County’s basic financial statements. The accompanying financial statements present the financial position and the changes in net assets and cash flows of the Authority only. The Authority is not involved in any joint ventures.

The Authority has established a written, single employer, defined benefit plan to provide healthcare benefits to eligible former employees and/or their qualifying dependents. The Authority also established a legally separate trust known as the Albany County Airport Authority OPEB Trust to receive and manage contributions from the Authority to fund its obligations for retiree health care benefits under the written plan. The Albany County Airport Authority OPEB Trust is included in the Authority’s financial statements as a separate Fiduciary Fund of the Authority under accounting principles promulgated by GASB. NOTE 2 - Summary of Significant Accounting Policies Basis of Accounting: The accompanying financial statements have been prepared in conformity with generally accepted accounting principles (GAAP) for state and local governments. GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting principles for state and local governments in the United States of America. The Authority’s operations are presented as a single enterprise fund. Enterprise funds distinguish operating revenues and expenses from non-operating items in accordance with the flow of economic resources measurement focus and the accrual basis of accounting. All assets, liabilities, net assets, revenues, and expenses are accounted for through a single enterprise fund with revenues recorded when earned and expenses recorded at the time liabilities are incurred. Revenues from airlines, FBO operations, concessions, property rentals, operating permits, and parking fees are reported as operating revenues. All expenses related to operating the Airport are reported as expenses. Passenger facility charges, noncapital grants, capital improvement charges, interest and investment income

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are reported as non-operating income. Interest expense, financing costs and grant expenses are reported as non-operating expenses. Capital contributions, special and extraordinary items are reported separately after non-operating revenues and non-operating expenses. Cash, Cash Equivalents and Investments: The deposit and investment of Authority monies is governed by provisions in its enabling legislation and by a Cash Management and Investment Policy adopted by the Authority on September 13, 1994 and last amended March 23, 2015. Any bank or trust company with a full service office in the County is authorized for the deposit of monies. Monies not needed for immediate expenditure may be invested in (1) United States Treasury obligations with maturities of seven years or less, (2) obligations backed by the United States Government full faith and credit, (3) New York State, New York State agency or New York State subdivisions (cities, towns, villages, counties) obligations with, (4) certificates of deposit fully collateralized from a bank or trust company in New York State, (5) notes, bonds, debentures, mortgages and other evidences of indebtedness of certain agencies sponsored by the United States government provided at the time of investment such agency or its obligations are rated and the agency receives, or its obligations receive, the highest rating of all independent rating agencies that rate such agency or its obligations, and (6) repurchase agreements using United States Treasury obligations with maturities of seven years or less. Investments are stated at fair value or amortized cost. For purposes of the statement of cash flows, the Authority considers all highly liquid investments (including restricted assets) with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents, which are stated at cost, consist of certificates of deposit, and treasury notes. Investments are reported at fair value. Note 3 sets forth information about the use of federal depository insurance (FDIC) and collateralization to insure the Authority’s deposits. Receivables: Receivables are reported at their gross value when earned and are reduced by the estimated portion that is expected to be uncollectible. The allowance for uncollectible amounts is based on collection history, aviation industry trends and current information regarding the credit worthiness of the tenants and others doing business with the Authority. When continued collection activity results in receipt of amounts previously written off, revenue is recognized for the amount collected. Restricted Assets: Restricted assets consist of monies and other resources which are restricted legally as described below: Capital Funds - These assets represent capital debt proceeds and grant funds that are restricted for designated capital projects and cannot be expended for any other item. Passenger Facility Charges Funds - These assets represent Passenger Facility Charges (PFC) collections based on an approved FAA application to “Impose” such charges on enplaned passengers at the Airport. These funds are restricted for designated capital projects and any debt incurred to finance the construction

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of those projects. The Authority recognizes and reports as other income PFCs earned when all conditions have been met that entitles the Authority to retain the PFCs. PFCs received prior to this time are reported as restricted net assets. Revenue Bond Funds - These assets represent Series 2003, 2006 and 2010 general airport revenue bond (GARB) proceeds and Series 1999 Environmental Facilities Corporation (EFC) bond proceeds held in Bond Reserve Accounts. Bond reserve accounts for the Series 2010 Bonds equal 125% of the average annual debt service due on bonds at the time of issuance. Bond Reserve Accounts on the Series 1999 Bonds through Series 2006 Bonds equal the maximum annual amount of principal and interest payments due on the bonds. ANCLUC Funds - These assets represent Airport Noise Control and Land Use Compatibility (ANCLUC) program funds. These Airport funds were generated through the sale or rental of airport noise abatement properties acquired with Federal and State aid and interest earnings thereon. The use of such revenues is restricted to Airport Improvement Program eligible project costs contingent upon FAA concurrence. Concession Improvement Funds - These assets represent 1% of gross revenues of all food and beverage and retail concessions held in escrow to potentially fund the planning, developing, construction, remodeling, renovating or replacing of any of the concessionaire’s leased area during the term of the concession agreement. Use of the funds during the term of the lease is subject to the Authority’s sole approval. Funds remaining at the end of a concession agreement are retained by the Authority. Capital Assets: Capital assets include land, improvements to land, easements, buildings, building improvements, vehicles, equipment and all other tangible assets that are used in operations and have useful lives extending beyond a single reporting period. Capital Assets assumed by the Authority on March 15, 1994 are carried at historical cost, net of accumulated depreciation. Acquisitions of new assets costing $50,000 or more are recorded at cost. Maintenance and repairs are expensed as incurred. When depreciable assets are disposed of, the related costs and accumulated depreciation are removed from the respective accounts and any gain or loss on disposition is credited or charged to an expense. Capital Assets are written off when fully depreciated unless clearly identified as still being in use. Capital Assets are written-down due to impairment if circumstances indicate a significant or unexpected decline in an assets service utility has occurred. Impaired Capital assets are written down using an approach that best reflects the decline in service utility. Assets to be disposed of and assets held for sale are reported at the lower of carrying value or fair value less costs to dispose of. Depreciation of capital assets is computed using the straight-line method at various rates considered adequate to allocate costs over the estimated useful lives of such assets. The estimated lives by general classification are as follows: Years Buildings and improvements ................................ 5-30 Vehicles, machinery and equipment .................... 5-15

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Capitalization of Interest: Interest costs incurred that relate to the acquisition or construction of capital assets acquired with tax-exempt debt are capitalized. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project, with interest earned on invested debt proceeds over the same period. Capitalized interest cost is prorated to completed projects based on the completion date of each project. No interest was capitalized in 2015 or 2014. Bond Issue Costs, Original Issue Discount and Deferred Loss on Bond Refundings: Bond insurance (an issuance cost) is deferred and amortized over the life of the respective issue on an effective interest method. Original issue discounts and deferred loss on refundings on long-term indebtedness are amortized using the effective interest method over the life of the debt to which it relates. Interest on capital appreciation debt is accreted using the effective interest method. Capital Contributions: Certain expenditures for Airport capital assets are significantly funded through the Airport Improvement Program (AIP) of the Federal Aviation Administration (FAA), with certain matching funds provided by the State and the Authority, or from various State allocations or grant programs. Capital funding provided under government grants is considered earned as the related allowable expenditures are incurred. Grants for capital asset acquisition, facility development and rehabilitation and eligible long-term planning studies are reported in the Statements of Revenues, Expenses and Changes in Net Position, after other income and expenses, as capital contributions. Revenue Recognition: Airfield Landing Fee Charges - Landing fees are principally generated from scheduled airlines, cargo carriers and non-scheduled commercial aviation and are based on the gross landed weight of the aircraft. The estimated landing fee structure is determined annually pursuant to an agreement between the Authority and the signatory airlines based on the adopted operating budget of the Authority and is adjusted at year end for the actual landed weight of all aircraft. Landing fees are recognized as revenue when the related facilities are utilized. FBO, Terminal Rents, Concessions and Ground Transportation - FBO revenues are generated from commercial and general aviation users, rental and concession fees are generated from airlines, parking lots, food and beverage, retail, rental cars, advertising and other commercial tenants. Leases are for terms from one to ten years and generally require rentals based on the volume of business, with specific minimum annual rental payments required. Rental revenue is recognized over the life of the respective leases and concession revenue is recognized based on reported concessionaire revenue. Other - All other types of revenues are recognized when earned.

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Special Items and Extraordinary Items: Special Items - Special items are significant transactions or other events within the control of management that are either unusual in nature or infrequent in occurrence. The Authority did not report any Special Items in 2014 or 2015. Extraordinary Items - Extraordinary items are transactions or other events that are both unusual in nature and infrequent in occurrence. The Authority did not report any Extraordinary Items in 2014 or 2015. Passenger Facility Charges: Passenger Facility Charges (PFC) at the rate of $3 per enplaned passenger have been levied by the Airport since March 1, 1994 under an FAA approved application to impose $40,726,364 with collection thereof estimated to be complete in the year 2005. During 1996, the Authority received approval to increase the amount of PFC collections to $116,888,308 extending the estimated collection period through the year 2022. In 2009, the Authority received approval to change the PFC collection from $3.00 per passenger to $4.50 per passenger, with a current estimated collection period through 2020. Through December 31, 2015, the Authority has collected PFCs including interest earnings thereon totaling $87,589,502. PFC funds, along with related interest earnings, are recorded as restricted net assets until they are applied against future debt service payments under an FAA approved Application to Use. PFC receipts are recognized and recorded as non-operating revenues in the year they are collected. The Authority previously expended $11.2 million of PFCs on projects funded on a pay-as-you-go basis. The Authority also covenanted in the Resolution authorizing the Series 2010A Refunding Bonds to apply future PFC collections to pay a portion of the debt service related to the FAA approved projects included in the Applications. Pursuant to the Resolution, PFCs collected and deposited in a segregated account, together with the interest earned thereon, are applied towards the subsequent debt service payments reducing the amount of debt to be funded from net operating revenue. Through December 31, 2015, the Authority has applied $78.2 million of PFC’s towards the payment of debt service. Compensated Absences: Employees accrue vacation in varying amounts based on length of service. Employees can accumulate up to 300 hours, or 37.5 days of vacation time. Unused vacation time can be liquidated for cash upon separation, retirement or death. Sick leave is earned by regular, full-time employees at the rate of one day per month. Employees can accumulate up to 1,320 hours or 165 days of sick leave. Any sick leave hours unused at the time of an employee’s retirement can be applied as additional service credit in calculating retirement benefits in the New York State Employees’ Retirement System. It is the policy of the Authority not to pay accumulated sick leave to employees who terminate prior to retirement. The liability for compensated absences earned through year-end, but not yet taken, is accrued by charging the expense for the change in the liability from the prior year.

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Pension Plan: The Authority applies GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68) to recognize the net pension asset (liability), deferred outflows and deferred inflows of resources, pension expense (revenue), and information about and changes in the fiduciary net position on the same basis as reported by the cost-sharing, multiple employer, defined benefit pension plan. The Authority also applies GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date (GASB 71) to report additional deferred outflows. The Authority participation in the plans is mandated by State law and includes the New York State and Local Employees’ Retirement System (ERS) and the Optional Voluntary Defined Contribution (VDC) (the Systems). The Systems recognize benefit payments when due and payable in accordance with benefit terms; investment assets are reported at fair value. More information on pension activity for the Systems is included in Note 12. Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, through subsequent events, actual results could differ from those estimated. Some estimates, such as the liability for Net Pension (Note 12) and Other Post Employment Benefits (OPEB) (Note 13) have the potential to vary more significantly over time than other estimates. Adoption of New Accounting Standards: During the fiscal year ended December 31, 2015 the Authority adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions and related GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. These statements address accounting and financial reporting for pensions provided to Authority employees that are administered by the New York State and Local Employees’ Retirement System (ERS). The statements also require various note disclosures (Note 12) and required supplementary information. As a result, beginning of year net position has been restated as follows:

For the fiscal year ended December 31, 2014 the Authority did not adopt any new accounting standards as it was not practical to adopt GASB Statement No. 68 and No. 71 for 2014 since the ERS was not required to provide, and did not provide, information that would be needed to apply GASB Statement No. 68 for 2014.

Net position previously reported, January 1, 2015 199,845,370$ Recognition of net pension liability, January 1, 2015 (237,218) Eliminate prepaid pension expense, January 1, 2015 (78,765) Record contributions made during the measurement period April 1, 2014 to March 31, 2015 315,057 Net position previously reported, January 1, 2015 199,844,444$

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2015 2014 2015 2014Cash and Cash Equivalents

Cash on hand 6,750$ 6,750$ Cash in bank accounts 40,131,794 37,900,439 42,791,626$ 39,962,085$

Total Cash and Cash Equivalents 40,138,544 37,907,189

InvestmentsU.S. Treasury SLUG bond maturing

2019 at 3.093% 277,389 277,389 Total Investments 277,389 277,389

Total cash, cash equivalents and investments 40,415,933$ 38,184,578$

Book Balance Bank Balance

Fair Value

As of As of12-31-15 12-31-14

Airlines 989,642$ 1,329,720$ Concessions 162,385 117,782 Other 778,782 555,052 Sub-Total 1,930,809 2,002,554 Less Allowances - - Net Accounts Receivable 1,930,809$ 2,002,554$

As of As of12-31-15 12-31-14

Opening Balance 196,778$ 196,383$ Interest received 79 395

Ending Balance 196,857$ 196,778$

NOTE 3 - Cash, Cash Equivalents and Investments Cash, cash equivalents and investments of the Authority at December 31 consist of the following:

The Authority’s deposits were secured by insurance from the Federal Depository Insurance Corporation (FDIC) covering $500,000 on December 31, 2015 and December 31, 2014 plus $42,927,729 and $39,769,113 of pledged collateral held by a third party trustee bank at December 31, 2015 and 2014, respectively. The FDIC bank insurance program Permanent Rule provides up to $250,000 in coverage for the Authority’s Savings Accounts and up to $250,000 for the Authority’s Demand Accounts. Collective balances in excess of these amounts are collateralized at 102% of the prior day closing bank balance. NOTE 4 - Receivables Accounts receivable is recorded net of allowances for probable uncollectible accounts.

NOTE 5 - ANCLUC Funds Changes in the Federal Airport Noise Control Land Use Compatibility (ANCLUC FAR150) funds are as follows:

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As of As of12-31-15 12-31-14

Reimbursement of expenses due from County 292,593$ 114,074$ 292,593$ 114,074$

Total Total Total12-31-13 Additions Deletions 12-31-14 Additions Deletions 12-31-15

Capital Assets that are not depreciated:Land and Easements 47,813,862$ 191,665 48,005,527$ 48,005,527$ Construction in Progress 3,311,003 8,628,005$ (2,932,865) 9,006,143 12,247,519$ (9,337,027) 11,916,635

Total 51,124,865 8,819,670 (2,932,865) 57,011,670 12,247,519 (9,337,027) 59,922,162

Capital Assets that are depreciated:Buildings 201,134,009 201,134,009 2,386,843 203,520,852 Improvements, other than buildings 202,186,732 2,741,200 204,927,932 4,751,316 209,679,248 Machinery and Equipment 14,289,099 (382,325) 13,906,774 2,198,868 (761,764) 15,343,878

Sub-total 417,609,840 2,741,200 (382,325) 419,968,715 9,337,027 (761,764) 428,543,978

Less accumulated depreciation:Buildings (96,605,756) (6,561,680) (103,167,436) (6,578,098) (109,745,534) Improvements (93,909,696) (6,385,766) (100,295,462) (6,574,919) (106,870,381) Machinery and Equipment (10,806,272) (1,010,069) 382,325 (11,434,016) (740,656) 761,764 (11,412,908) Sub-total (201,321,724) (13,957,515) 382,325 (214,896,914) (13,893,673) 761,764 (228,028,823)

Total depreciable Capital Assets, net 216,288,116 (11,216,315) - 205,071,801 (4,556,646) - 200,515,155 Total Capital Assets, Net 267,412,981$ (2,396,645)$ (2,932,865)$ 262,083,471$ 7,690,873$ (9,337,027)$ 260,437,317$

NOTE 6 - Due from County of Albany The net amount from the county consists of the following: The County provides certain services to the Authority including sheriff officers for public safety, code enforcement inspections, sewer district charges, various support services and the Airport’s share of the County’s indirect cost allocation plan. The total expenditures incurred by the Authority during the years ended December 31, 2015 and 2014 for these services totaled $2,128,179 and $2,255,177, respectively, 2014 included $81,182 which represented the Airport’s reimbursement of debt service payments on the County’s general obligation debt issued for Airport capital projects. NOTE 7 - Capital Assets Capital Assets balances and activity for the years ended December 31, 2015 and 2014 were as follows:

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Outstanding Outstanding Outstandingat 12-31-13 Additions Deletions at 12-31-14 Additions Deletions at 12-31-15

Authority Revenue Bonds/Debt ObligationsBonds Payable

Series 1999 NYS EFC 2,755,000$ -$ (396,000)$ 2,359,000$ -$ (401,000)$ 1,958,000$ Series 2003 A GARB 3,700,000 - (335,000) 3,365,000 - (335,000) 3,030,000 Series 2006 A & B GARB 10,695,000 - (605,000) 10,090,000 - (635,000) 9,455,000 Series 2006 C GARB 5,505,000 - (160,000) 5,345,000 - (165,000) 5,180,000 Series 2010 A Refunding 88,680,000 - (5,675,000) 83,005,000 - (5,845,000) 77,160,000 Series 2010 B Refunding 1,735,000 - (850,000) 885,000 - (885,000) -

Total Bonds Payable 113,070,000 - (8,021,000) 105,049,000 - (8,266,000) 96,783,000Unamortized Premiums 3,663,730 - (776,945) 2,886,785 - (731,288) 2,155,497

Net Bonds Payable 116,733,730 - (8,797,945) 107,935,785 - (8,997,288) 98,938,497Obligation for County of Albany Bonds (net) 81,182 - (81,182) - - - -

Total Long-term Indebtedness 116,814,912$ -$ (8,879,127)$ 107,935,785$ -$ (8,997,288)$ 98,938,497$

NOTE 8 - Long-Term Indebtedness A summary of the changes in the Authority’s long-term indebtedness outstanding and the amount due to the County during 2015 and 2014 were as follows:

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As of December 31, 2015


Series 1999 A Airport Revenue Bond Issue:Principal paid annually on October 1, inpayments of $412,000 in 2016 to $699,000in 2019 with interest at 2.732% to 3.382% due semi-annually on April 15 and October 15 1,958,000$ 2,359,000$ Less amortization of: Deferred Loss (4,786) (6,797)

Series 1999 A Revenue Bond net carrying amount 1,953,214 2,352,203

Less current portion including amortization 410,303 398,989

Long - Term Portion 1,542,911$ 1,953,214$

Year Ended Principal Interest Int. Subsidy Total2016 412,000$ 42,675$ (16,856)$ 437,819$ 2017 418,000 35,517 (13,277) 440,240 2018 429,000 27,445 (9,241) 447,204 2019 699,000 18,567 (4,802) 712,765

TOTAL 1,958,000$ 124,204$ (44,178)$ 2,038,027$

Authority Outstanding Debt Issues: Series 1999 A NYS Environmental Facilities Corporation Bonds In 1998, the Authority, through the New York State Environmental Facilities Corporation (EFC), entered into a $7.5 million Series A, no interest, loan agreement with the New York State Water Pollution Control Revolving Fund to finance the total construction of a new glycol wastewater treatment system. In July 1999, the loan was replaced with a new twenty year bond issued by the EFC. Under the Agreement with the EFC, the interest on the first $3 million was and is 100 percent subsidized and the remaining $4.5 million was and is 50 percent subsidized by the New York State Water Pollution Control Revolving Fund. During 2010, EFC refunded bonds they had previously issued to provide financing to the Authority and reduce the amount of the remaining debt service due from the Authority to EFC. On June 24, 2010 the Authority’s obligation to EFC on the remaining partially subsidized bonds then outstanding was amended and restated to lower the Authority’s cost of borrowing on the remaining bonds outstanding. The net carrying amount on the Series 1999 A EFC Airport Revenue Bonds consists of the following:

Maturities of the long-term Series 1999 A Airport Revenue Bond issue will require the following principal and interest payments (excluding amortization of deferred items) based on the amounts outstanding at December 31, 2015:

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Series 2003 A General Airport Revenue Bond Issue:Principal paid annually on December 15, inpayments of $345,000 in 2016 to $135,000in 2033 with interest at 3.375% to 4.25% duesemi-annually on June 15 and December 15 3,030,000$ 3,365,000$ Less amortization of: Bond Insurance (44,851) (51,524)

Series 2003 A GARB net carrying amount 2,985,149 3,313,476



Year Ended Principal Interest Total2016 345,000$ 118,956$ 463,956$ 2017 365,000 107,313 472,313 2018 370,000 94,537 464,537 2019 155,000 81,587 236,587 2020 165,000 75,194 240,194

2021-2025 710,000 274,080 984,080 2026-2030 540,000 151,086 691,086 2031-2033 380,000 32,937 412,937

TOTAL 3,030,000$ 935,690$ 3,965,690$

Series 2003 A General Airport Revenue Bonds In May 2003, the Authority issued $8,885,000 of General Airport Revenue Bonds to finance various land, hangars, and equipment acquisitions, apron and runway expansions, taxiway, runway and hangar rehabilitations, certain terminal expansion and leasehold improvements. These twenty year General Airport Revenue Bonds with principal payments due in the years 2004 through 2033 were sold at a net interest cost of 3.79%. The net carrying amount of the Series 2003 A General Airport Revenue Bonds consists of the following: Maturities of the long-term Series 2003 A General Airport Revenue Bond issue will require the following principal and interest payments (excluding amortization of deferred items) based on the amounts outstanding at December 31, 2015:

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Series 2006 A General Airport Revenue Bond Issue:Principal paid annually on December 15, inpayments of $500,000 in 2020 to $1,080,000in 2026 with interest at 4.25% to 5.0% due semi-annually on June 15 and December 15 6,315,000$ 6,315,000$ Less amortization of: Bond Insurance (33,828) (37,882)


Less current portion including amortization (4,054) (4,054)


Year Ended Principal Interest Total2016 -$ 290,650$ 290,650$ 2017 - 290,650 290,650 2018 - 290,650 290,650 2019 - 290,650 290,650 2020 500,000 290,650 790,650

2021-2025 4,735,000 897,675 5,632,675 2026 1,080,000 48,600 1,128,600

TOTAL 6,315,000$ 2,399,525$ 8,714,525$

Series 2006 A & B General Airport Revenue Bonds In 2006, the Authority closed on the sale of two General Airport Revenue Bond issues totaling $14,230,000. the bonds were sold to finance capital projects at the Albany International Airport: The Series 2006 A (non AMT) issue totaling $6,315,000 was sold to finance certain property acquisitions, parking expansions and to purchase equipment used in the operation of the Airport. These twenty year Airport revenue bonds with principal payments due in the years 2020 through 2026 were competitively sold at a net interest cost of 4.57%. The net carrying amount on the Series 2006 A General Airport Revenue Bonds consists of the following: Maturities of the long-term Series 2006 A General Authority Revenue Bond Issue will require the following principal and interest payments (excluding amortization of deferred items) based on the amounts outstanding at December 31, 2015:

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Series 2006 B General Airport Revenue Bond Issue:Principal paid annually on December 15, inpayments of $660,000 in 2016 to $300,000in 2020 with interest at 4.75% due semi-annuallyon June 15 and December 15 3,140,000$ 3,775,000$ Less amortization of: Bond Insurance (9,390) (13,434)

Series 2006 B GARB net carrying amount 3,130,610 3,761,566




TOTAL 3,140,000$ 416,337$ 3,556,337$

Series 2006 A & B General Airport Revenue Bonds, Con’t The Series 2006 B (AMT) issue totaling $7,915,000 was sold to finance certain terminal renovations, general aviation hangar renovations, construction of additional general aviation T-hangars, fuel farm upgrades and equipment for use by airport management contractors. These fourteen year Airport revenue bonds with principal payments due in the years 2007 through 2020 were competitively sold at a net interest cost of 4.70%. The net carrying amount on the Series 2006 B General Airport Revenue Bonds consists of the following: Maturities of the long-term Series 2006 B General Authority Revenue Bond Issue will require the following principal and interest payments (excluding amortization of deferred items) based on the amounts outstanding at December 31, 2015:

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Series 2006 C General Airport Revenue Bond Issue:Principal paid annually on December 15, inpayments of $170,000 in 2016 to $380,000in 2035 with interest at 4.0% to 4.25% due semi-annually on June 15 and December 15 5,180,000$ 5,345,000$ Less amortization of: Bond Insurance (36,319) (39,469)

Series 2006 C GARB net carrying amount 5,143,681 5,305,531




2021-2025 1,130,000 877,651 2,007,651 2026-2030 1,395,000 615,763 2,010,763 2031-2035 1,735,000 266,925 2,001,925

TOTAL 5,180,000$ 2,845,816$ 8,025,816$

Series 2006 C General Airport Revenue Bonds In December 2006, the Authority issued $6,330,000 General Airport Revenue Bonds to finance the construction of an aviation service and maintenance facility. These Airport revenue bonds with principal payments due in the years 2007 through 2035 were competitively sold at a net interest cost of 4.56%. The net carrying amount on the Series 2006 C General Airport Revenue Bonds consists of the following: Maturities of the long-term Series 2006 C General Authority Revenue Bond Issue will require the following principal and interest payments (excluding amortization of deferred items) based on the amounts outstanding at December 31, 2015: The facility financed by these bonds was constructed for and initially leased to Eclipse Aviation. In late 2008 Eclipse Aviation filed for bankruptcy reorganization which in early 2009 was converted to a Chapter 7 liquidation. On August 31, 2009 the Authority received notice from the bankruptcy trustee that bankruptcy estate of Eclipse Aviation formally rejected its lease with the Authority. The Authority received $133,750 in lease payments related to this facility in 2009. In January 2010, the Authority hired a commercial real estate broker to locate a new tenant for the facility. During 2014 and 2015 the Authority rented the hangar space to transient general aviation aircraft storage tenants.

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Year Ended Principal Interest Total2016 6,980,000$ 3,575,231$ 10,555,231$ 2017 7,335,000 3,226,231 10,561,231 2018 7,625,000 2,932,831 10,557,831 2019 5,555,000 2,557,581 8,112,581 2020 5,835,000 2,281,231 8,116,231

2021-2025 33,585,000 6,972,406 40,557,406 2026-2030 10,245,000 762,038 11,007,038

TOTAL 77,160,000$ 22,307,550$ 99,467,550$



Series 2010 A General Airport Revenue Refunding Bond Issue:Principal paid annually on December 15, inpayments of $6,980,000 in 2016 to $690,000in 2030 with interest at 4.00% to 5.00% due 77,160,000$ 83,005,000$ semi-annually on June 15 and December 15Plus amortization of: Bond Premium 2,155,497 2,886,784 Less amortization of: Deferred Loss on Refunding (6,154,267) (7,588,560) Bond Insurance (529,244) (619,465)


Less current portion including amortization 6,272,714 5,051,778


Series 2010 A General Airport Revenue Refunding Bonds In August of 2010, the Authority issued $105,745,000 (non AMT) of General Airport Revenue Refunding Bonds to refund the Series 1998 B Airport Revenue Bonds, the Series 2000 B Airport Revenue Bonds, and the Series 2008 A Airport Revenue Bonds. The net carrying amount on the Series 2010 A General Airport Revenue Bonds consists of the following:

Maturities of the long-term Series 2010 A General Airport Revenue Refunding Bond issue will require the following principal and interest payments (excluding amortization of deferred items) based on the amounts outstanding at December 31, 2015: The Facilities financed with Series 2010A included portions of the terminal, the New York State Police Aviation Facility, the FAA Control Tower, parking facilities and other Airport improvements. Lease agreements with the State of New York and the Federal Aviation Administration provide revenue to support a portion of the debt service and remain in effect through 2030 and 2019 respectively.

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Series 2010 B General Airport Revenue Refunding Bond Issue:Principal paid annually on December 15, inpayments of $885,000 in 2015 with interest -$ 885,000$ 4.60% due semi-annually on June 15 andDecember 15Less amortization of: Deferred Loss on Refunding - (71,211) Bond Insurance - (1,845)

Series 2010 B GARB net carrying amount - 811,944

Less current portion including amortization - 811,944

Long - Term Portion -$ -$

Current Long-Term TotalAuthority Revenue Bonds/Debt Obligations

Series 1999 NYS EFC 410,303$ 1,542,911$ 1,953,214$ Series 2003 A GARB 338,990 2,646,159 2,985,149 Series 2006 A GARB (4,054) 6,285,226 6,281,172 Series 2006 B GARB 656,636 2,473,974 3,130,610 Series 2006 C GARB 166,947 4,976,734 5,143,681 Series 2010 A Refunding 6,272,714 66,359,272 72,631,986 Series 2010 B Refunding - - -

Total Long-term Indebtedness 7,841,536$ 84,284,276$ 92,125,812$

Series 2010 B General Airport Revenue Refunding Bonds In August of 2010, the Authority issued $4,110,000 General Airport Revenue Refunding Bonds (Taxable) to pay a portion of the termination payment for the interest rate exchange agreement integrated with the Series 2008 A bonds refunded at the same time. The net carrying amount on the Series 2010 B General Airport Revenue Bonds consists of the following:

The Facilities financed with Series 2010B included the Fixed Base of Operations, Fuel Farm and certain land and buildings. The table below provides a summary of Authority Revenue Bonds net of unamortized amounts for cost of issuance, net premium/discount and deferred loss on refunding:

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Debt Limit: The Authority’s debt limit was increased from $175 million to $285 million during 2004 by State legislation enacted (Chapter 500), amending the Albany County Airport Authority Act, Title 32 of Article 8, of the New York State Public Authorities Law. The Act authorizes the Authority to issue bonds, notes or other obligations in the aggregate outstanding principal amount not exceeding $285,000,000. In addition, the Authority is authorized to issue refunding bonds, provided that upon a refunding the aggregate principal amount of bonds, notes or other obligations outstanding under the Act may be greater than $285,000,000 only if the present value of the aggregate debt service of the refunding bonds, notes or other obligations does not exceed the present value of the refunded bonds, notes or other obligations (calculated as provided in the Act). As of December 31, 2015, the Authority had $96.8 million of principal debt outstanding issued which does not include deferred losses, bond premiums and amortization of bond insurance costs. The Authority adopted a Derivatives Policy which allows for the use of Derivative Financial products for capital financing. The Derivatives Policy prohibits the use of Derivative Financial products for either investment or speculation. The Derivatives Policy recognizes derivatives as non-traditional financial products, including but not limited to, floating to fixed rate swaps, swaptions, caps, floors, collars and municipal warrants. The Derivatives Policy requires: that transactions entered into under the policy must be for a market transaction for which competing

good faith quotations may be obtained at the discretion of the Authority and with the advice and recommendation of the Authority's swap advisor, and other financial professionals;

that transactions should produce material economic benefit believed to not otherwise be attainable under the current existing market conditions, or existing conventional debt structures, and improve the flexibility of debt management strategies;

employ a structure that will attempt to minimize any additional floating rate basis risk, tax law risk or credit risk to the Authority and justify the acceptance of these risks for a particular transaction, based on the additional benefits to the Authority; and

limits the total amount of derivative financial product transactions so as not to exceed thirty-three percent (33%) of the total authorized debt limit of the Authority (currently $285 million).

The Authority adopted a Variable Rate Debt Policy which allows for the use of variable rate debt within prescribed limitations. The Variable Rate Debt Policy recognizes permanent and interim uses of variable rate debt. Interim use of variable rate debt may occur during the construction phase of a project for which the Authority intends to obtain permanent financing at the conclusion of the construction phase. The Variable Rate Debt Policy provides that: “Permanent Variable Rate Debt Exposure” includes variable rate debt which the Authority does not

intend to be refinanced by a long-term fixed rate debt; “Net Permanent Variable Rate Debt Exposure” is permanent variable rate debt that is not offset by

the cash, cash equivalent and short-term investment assets of the Authority; permanent variable rate debt excludes, with some exceptions, variable debt that has been

synthetically changed to fixed rate debt by the use of a financial derivative hedge product with a fixed-payer interest rate swap;

net permanent variable rate debt, excluding synthetic fixed rate transactions, should not generally exceed twenty percent (20%) of the Authority’s outstanding indebtedness;

the Authority did not utilize any derivative or variable rate debt products in 2015 or 2014.

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Inception Year Ended Year EndedTo Date 2015 2014

County of Albany 46,824,500$ -$ -$ Federal 141,563,045 6,854,066 4,400,392 State 73,344,664 2,088,586 2,013,986 Total 261,732,209$ 8,942,652$ 6,414,378$

2015 2014Designation of unrestricted net position

Operations and maintenance reserve 9,761,410$ 9,217,119$ Renewal and replacement reserve 500,000 500,268 Total designations 10,261,410 9,717,387

Undesignated unrestricted net position 6,452,330 5,121,414 Total unrestricted net position 16,713,740$ 14,838,801$

NOTE 9 - Capital Contributions and Net Position Since its inception, the Authority has received capital contributions from the County of Albany in the form of Net Assets transferred as of the date of inception and from Federal and State grants as follows: Unrestricted net position consists of the following: Under the master bond resolution adopted in 1997, the Authority agreed to create and maintain two reserves. Both were to be funded by depositing funds in separate bank accounts in accordance with the master bond resolution and are included as a component of unrestricted cash and cash equivalents on the statements of net position. The Operating and Maintenance Reserve is to be equal to two months operating and maintenance expenses and is to be used only if the Authority does not have sufficient funds in its current operating accounts to pay these expenses on a timely basis. The Renewal and Replacement Reserve is to be equal to $500,000 and can be used solely for non-recurring major maintenance, repairs, renewals, or replacements related to Airport facilities. Both reserves have been funded as required. NOTE 10 - Airline Lease and Use Agreements Six commercial passenger airlines, fifteen affiliated commercial passenger airlines and two cargo airlines serving the Airport have executed the first five year renewal option on the Airline Use and Lease Agreement (“Agreement”). This Agreement has a five-year term effective January 1, 2016 with an option for one five year renewal to extend the Agreement to December 31, 2025. The Authority charges signatory rates to carriers who have executed the Agreement and non-signatory rates to all other airlines and Airport users. In general, the rate formulas under the Airline and Cargo Carrier Agreements in effect provide that at the end of each year the total financial requirements for each of the Airport cost centers be determined by applying revenues related to that cost center before the rate required to be paid by Signatory Airlines and Cargo Carriers is determined. The landing fee calculation uses a residual cost methodology. The terminal rate is

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2016 9,813,619$ 2017 9,488,548 2018 9,314,445 2019 3,946,571 2020 3,169,531 2021-2031 16,743,008 Total $ 52,475,722

based upon calculation of the total cost per square foot subject to annual settlement based upon actual cost. The Agreement also contains a calculation of an amount for capital expenditures not subject to majority-in-interest (MII) approval by the Signatory Airlines in the rates and charges calculation. This amount is deducted after the net amount available for revenue sharing between the signatory airlines and the Authority is determined; therefore, not affecting the initial rates and charges established for billing the airlines. The net requirement is then divided by appropriate usage factors to determine the rates and fees applicable to signatory airlines. The Agreements provide a net income sharing mechanism by which the Signatory Airlines and Cargo Carriers receive a percentage of the Airport’s net income (as defined in the Agreements) during the term of the agreement in the form of a rate credit offset. The Agreements also provide for extraordinary coverage protection where the Signatory Airlines and Cargo carriers have agreed to provide additional revenue to the Airport should net revenues be less than the required amount under the Master Bond Resolution. In 2015, the net revenue sharing was fifty percent to the airlines and fifty percent to the Authority. Under this formula, the airlines and cargo carriers received a charge of $66,633 for the rates and charges settlements and the airlines received $1,845,780 for their share of the revenue sharing; totaling $1,779,147. In 2014, the airlines and cargo carriers were given total credits of $1,662,803 for their share of the final settlement and revenue sharing. In 2013, the total credits were $1,427,220. NOTE 11 - Airport Tenant Agreements The Authority has entered into agreements with tenants for the use of certain Airport facilities including ready/return rental car parking areas, buildings, terminals, hangars and customer service areas. The Authority entered into concession agreements. These agreements include: advertising, food and beverage, retail, on-airport rental cars, vending machines, baggage delivery services, baggage cart management, ATMs, vending machines and foreign currency exchange. Normally the terms of the agreements include a fixed minimum annual guaranteed (MAG) payment to the Airport as well as additional contingent payments based on the tenants’ annual sales volume of business. Revenues exceeded the MAG amounts due in 2015 of $10,728,650 by $1,210,358. In 2014 the revenues exceeded the MAG amounts due of $10,328,226 by $943,901. Some of the agreements provide for a periodic review and redetermination of the payment amounts. Future MAG payments due to the Authority under non-cancelable agreements are as follows for the years ending December 31:

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NOTE 12 - Pension Plan Plan Description - The Authority participates in the New York State and Local Employees’ Retirement System (ERS) cost-sharing multiple-employee retirement system and the Public Employees’ Group Life Insurance Plan (Systems). The Systems provide retirement benefits as well as death and disability benefits. Obligations of employers and employees to contribute and benefits to employees are governed by the New York State Retirement and Social Security Law (NYSRSSL). As set forth in the NYSRSSL, the Comptroller of the State of New York (Comptroller) serves as sole trustee and administrative head of the Systems. The Comptroller shall adopt and amend rules and regulations for the administration and transaction of the business of the systems and for the custody and control of their funds. The Systems issue a publicly available annual financial report that includes audited financial statements and required supplementary information. This report may be obtained by writing to the New York State and Local Employees’ Retirement System, Office of the State Comptroller, 110 State Street, Albany, NY 12207. Funding Policy - Contributory and noncontributory requirements depend upon the point in time at which an employee last joined the System. Most members of the ERS who joined the System on or before July 26, 1976 are enrolled in a non-contributory plan. Employees who last joined ERS subsequent to July 26, 1976 are enrolled in a contributory Plan. Tier 3 through Tier 5 employees must contribute 3 percent of their salary. Tier 3 and Tier 4 employees with more than ten years of membership or credited service within the System are not required to contribute. Tier 6 member contribution rates vary from 3 percent to 6 percent depending on salary. Tier 5 and 6 members are required to contribute for all years of service. Members cannot be required to begin contributing or to make increased contributions beyond what was required when their memberships began. The Authority is required to contribute at an actuarially determined rate. The required contributions for the years ended December 31, 2015, 2014 and 2013 were $305,211, $315,057 and $346,354, respectively, or approximately 19.1%, 19.9% and 22%, respectively of the covered employees’ payrolls. The Authority’s contributions made to the Systems were equal to 100% of the required contributions for each year. Pension Liability - At December 31, 2015, the Authority reported the following asset/(liability) for its proportionate share of the net pension asset/(liability) for the System. The net pension asset/(liability) was measured as of March 31, 2015. The total net pension asset/(liability) used to calculate the net pension asset/(liability) was determined by an actuarial valuation as of that date. The Authority’s proportion of the net pension asset/(liability) was based on a projection of the Authority’s long-term share of contributions of all participating members, actuarially determined. This information was provided by the ERS System in a report provided to the Authority. The net pension (liability) is included in the accrued expenses line on the Statement of Net Position. The net pension liability is included in the accrued expenses line on the Statement of Net Position.

Actuarial valuation date April 1, 2014Net pension asset/(liability) $177,341Authority's portion of the Plan'stotal net pension asset/(liability) 0.0052495%

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Pension Expense - For the year ended December 31, 2015, the Authority recognized its proportionate share of pension expense of $160,496. Deferred Outflows and Inflows of Resources Related to Pension - At December 31, 2015, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred DeferredOutflows of Inflows ofResources Resources

Differences between expected and actual experiences $ 5,677 $ - Changes of assumptions - - Net difference between projected and actual earnings on pension plan investments 30,802 - Changes in proportion and differences between contributions and proportionate share of contributions 46,565 - Contributions subsequent to the measurement date 305,211 - Total $ 388,255 $ -

The Authority’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension asset/(liability) in the year ended December 31, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

2016 20,761$ 2017 20,761 2018 20,761 2019 20,761 2020 -

Thereafter -

Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined by using an actuarial valuation as noted in the table below, with update procedures used to roll forward the total pension asset/(liability) to the measurement date. The actuarial valuation used the following actuarial assumptions:

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Measurement date March 31, 2015Actuarial valuation date April 1, 2014Interest Rate 7.50%Salary Scale 4.90%Decrement tables April 1, 2005 -

April 1, 2014System's Experience

Inflation rate 2.70%Projected Cost of Living Adjustments 1.4% annually

Annuitant mortality rates are based on April 1, 2005 – March 31, 2011 System’s experience with adjustments for mortality improvements based on MP-2014. The actuarial assumptions used in the April 1, 2014 valuation are based on the results of an actuarial experience study for the period April 1, 2005 – March 31, 2010. The long term expected rate of return on pension plan investments was determined in accordance with Actuarial Standard of Practice (ASOP) No. 27, Selection of Economic Assumptions for Measuring Pension Obligations. ASOP No. 27 provides guidance on the selection of an appropriate assumed investment rate of return. Consideration was given to expected future real rates of return (expected returns, net of pension plan investment expense and inflation) for each major asset class as well as historical investment data and plan performance. The long term expected rate of return on pension plan investments was determined using a building block method in which best estimate ranges of expected future real rates of return (expected returns net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation are summarized below.

Long-Termexpected

Target real rateallocation of return

Domestic equity 38 % 7.30 %International equity 13 8.55 Private equity 10 11.00 Real estate 8 8.25 Absolute return strategies 3 6.75 Opportunistic portfolio 3 8.60 Real assets 3 8.65 Bonds and mortgages 18 4.00 Cash 2 2.25 Inflatoin-Indexed bonds 2 4.00

100 %

Asset class

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Discount rate- The discount rate used to calculate the total pension asset/(liability) was 7.5%. The projection of cash flows used to determine the discount rate assumes that contributions from plan members will be made at the current contribution rates and that contributions from employers will be made at statutorily required rates, actuarially. Based upon the assumptions, the System’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore the long term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension asset/(liability). Sensitivity of the Proportionate Share of the Net Pension Asset/(Liability) to the Discount Rate Assumption The following presents the Authority’s proportionate share of the net pension asset/(liability) calculated using the discount rate of 7.5%, as well as what the Authority’s proportionate share of the net pension asset/(liability) would be if it were calculated using a discount rate that is one percentage point lower (6.5%) or one percentage point higher (8.5%) than the current rate:

(6.5%) (7.5%) (8.5%)

Employer's Proportionate Share of the Net Pension Liability (Asset) $1,182,056 $177,341 ($670,887)

Changes in assumptions - Changes in assumptions about future economic or demographic factors or other inputs are amortized over a closed period equal to the average of the expected service lives of all employees that are provided with pension benefits. During the measurement period, there were no changes in assumptions. Collective Pension Expense - Collective pension expenses includes certain current period changes in the collective net pension asset/(liability), projected earnings on pension plan investments, and the amortization of deferred outflows or resources and deferred inflows of resources for the current period. The collective pension expense for the period ended December 31, 2015 is $172,137. Payables to the pension plan - ERS employer contributions are paid annually based on the System’s fiscal year which ends on March 31st. Payments to the ERS due February 1, 2016 were prepaid at a discounted amount of $305,211 during the Authority’s year ended December 31, 2015. Accordingly, the Authority did not owe any payables to the Pension System as of December 31, 2015. Optional Voluntary Defined Contribution (VDC) Plan - Under state legislation enacted in 2012, Authority Employees first hired after June 30, 2013 who earn least $75,000 per year or more are eligible to join the New York State Voluntary Defined Contribution (VDC) Plan instead of the ERS Plan. The VDC Plan is administered by the State University of New York Optional Retirement Plan (SUNY OPR). SUNY OPR has contracted with TIAA-CREF to administer the VDC Plan. The VDC plan is portable among employers and eligible employees vest 366 days after first joining the plan or other employer funded contract with any of the VDC investment providers. The Authority’s contribution rate is 8% of participating employee salary for the duration of employment. Participating employee contribution rates range from 5.75% to 6% based upon salary level. During the initial vesting period the Authority must contribute 4% interest to a vesting employee’s contribution deduction not yet remitted to the Plan. The Authority has one employee who joined

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the plan in October 2015 and is not yet vested. The Authority was not required to make any payments to the VDC plan through December 31, 2015. NOTE 13 - Other Post Employment Benefits (OPEB) During 2009 the Authority adopted a formal written OPEB plan and created a legally separate trust to accumulate resources to fund the Authority’s obligation to pay for OPEB benefits under the plan. The OPEB plan provides that all full-time and regular part-time employees with ten or more years of service with the Authority (including any years with the State of New York or County of Albany immediately preceding becoming an Authority employee) who retire from the Authority and are collecting retirement benefits through the New York State and Local Employees' Retirement System, shall receive health insurance benefits from the Authority as a retired employee. Such benefits shall be equal to the health insurance benefits received by the employee at the time of their retirement and the costs thereof to the retired employee shall be at the same rate or percentage sharing the employee was paying at the time of their retirement. A qualifying retiree’s surviving spouse and eligible dependents can continue to receive OPEB benefits as long as they do remain otherwise eligible to be a dependent of the deceased employee. Retired employees are required to contribute to the cost of the plan benefit in proportion to the amount they contributed toward the cost of their health insurance prior to retirement. The Authority allows each employee to accumulate up to 1,320 hours of unused sick time and apply the value of this to fund their required contribution. The plan is a single-employer defined benefit plan. Effective January 1, 2008, the Authority implemented GASB Statement 45 prospectively which requires reporting, on an accrual basis, the liability associated with other postemployment benefits. The OPEB liability at transition was zero. The accrued liability is based upon an actuarial valuation that reflects a long-term perspective. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and that actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The Albany County Airport Authority OPEB Trust has issued a separate financial statement which may be obtained by contacting the Albany County Airport Authority OPEB Trustee c/o the Albany County Airport Authority, 737 Albany Shaker Road, Administration Building, Suite 204, Albany, NY 12211-1057. The Authority used the following facts, actuarial methods and assumptions in determination of the OPEB liability and 2015 OPEB Expense:

The plan is identified as a Single-Employer defined-benefit Plan. Premiums paid for coverage under the Community Rated Plan (insurance premiums are based

upon multiple employers). The future Rate of Return on the Authority’s unrestricted funds deposits will be 3.04% equal to

the Authority’s average rate of interest earned on deposits of money over the past five years. The future rate of Payroll growth will be 3%. The general rate of inflation will be 3% (the same as the future rate of payroll growth). Amortization period of Unfunded Accrued OPEB liability is 30 years commencing 2008. Amortization method chosen was “Level Percent of Payroll”, closed amortization period. The annual rate of health care costs increase would be 9% in 2015 and gradually decline to 5%

in 2016 and thereafter. The actuarial cost method chosen was the “Entry Age Actuarial Cost Method”. The Unfunded Actuarial Accrued Liability and Annual Required Contribution was calculated

using the Alternative Measurement Method.

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Annual Required Contribution…………………………………… $ 171,144 Interest on Net OPEB Obligation………………………………… (4,828)Adjustment to the Annual Required Contribution……………….. 6,937 Annual OPEB Cost (Expense)…………………………………… 173,253 Age Adjusted Contributions Made……………………………….. (196,418)Change in Net OPEB Obligation (NOO)………………………… (23,165)Net OPEB Obligation (NOO) – Beginning of Year……………… (158,811)Net OPEB Obligation (NOO) (Asset) – End of Year…………… $ (181,976)

Actuarial Valuation Date…………………………………………. 12/31/2015Actuarial Value of Assets (a)…………………………………….. $1,812,329Actuarial Accrued Liability (b)…………………………………… $3,131,944Unfunded Actuarial Accrued Liability (UAAL) (b-a)…………… $1,319,615Funded Ratio (a/b)……………………………………………….. 57.87%Covered Payroll ( c)……………………………………………… $1,743,009UAAL as a Percentage of Covered Payroll ((b-a)/c)………….. 75.71%

2015 2014Annual OPEB cost 176,253$ 189,680$ Age adjusted contribution 196,418$ 201,481$ Percentage of annual OPEB cost contributed 111.4% 106.2%Net OPEB obligation (asset) (181,976)$ (158,811)$

Actuarial table used was RP2000 Mortality Table for Males and Females Projected 10 years. Based upon the above assumptions and methods the Authority’s Net OPEB Obligation was determined to be as follows: During 2015 the Authority made $196,418 in contributions toward the OPEB plan. The following table provides a schedule of the Authority’s Funding Progress of the OPEB liability: The following table presents the History of the Authority’s Net OPEB Obligation: The schedule of funding progress in the Required Supplemental Information following the notes to the financial statements presents multiyear trend information comparing the changes in the actuarial value of plan assets relative to the actuarial liability for benefits. NOTE 14 - Risk Management The Authority is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Authority has purchased commercial insurance for all risk above minimal deductible amounts and named the operator of the Airport, AFCO AvPorts Management LLC (AvPorts) as an additional insured. In addition, the FBO, REW Investments (Million Air) and all tenants and users of the Airport are required to have insurance coverage naming the Authority and the County as additional insured. No liability is recorded at December 31, 2015 for outstanding claims or for any potential claims incurred but not reported as of that date. Settled claims have not exceeded these commercial coverages by any material

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Year Ended Year Ended2015 2014

Unpaid claims, beginning of year -$ -$ Claims incurred 892 - Claims paid (892) - Unpaid claims, end of year -$ -$

amounts during the three years ended December 31, 2015. There was no reduction in insurance coverage during 2015. Changes in the balance of claims paid directly by the Authority during the past two years are as follows: NOTE 15 - Commitments and Contingencies FBO Operations – As of October 1, 2005 the Authority entered into an agreement with REW Investments, Inc., (Million Air) to manage the fixed based operations on airport. Million Air is granted the nonexclusive privilege for managing a full and complete general aviation support function including ground handling, apron services, repair and maintenance, and hangar storage. The agreement also provides for operating and managing the Airport’s fuel farm and deicing program for all commercial and general aviation aircraft. Million Air receives full reimbursement of all their on-airport pre-approved related expenses plus a base management fee of $150,000 per annum and various incentive fees based on certain revenue performance indicators. Airport Operations – AFCO AvPorts Management LLC (d/b/a AvPorts) manages the daily operations and maintenance of the airport under an agreement dated October 11, 2005 and initially expiring December 31, 2010, subject optional extension. The agreement has been extended through December 31, 2018. Operational centers include the airfield, terminal, parking, ARFF, operations, security and vehicle and equipment maintenance. AvPorts receives full reimbursement of all their on-airport pre-approved related expenses plus a base management fee of not less than $390,000. AvPorts may be entitled to an additional incentive fee of $55,000 each year based on performance indicators negotiated between the parties. Capital Improvement Programs - As of December 31, 2015, the Authority has outstanding contractual commitments for completion of certain capital improvement projects totaling $2.0 million of which an estimated $1.5 million is eligible for partial reimbursement from the FAA and the State. The remaining amount is expected to be funded from Airport funds. Concentration of Credit Risk - The Authority leases facilities to the airlines under certain leases and/or use agreements and to other businesses under agreements to operate concessions at the Airport. Amounts due from airlines represent approximately 51.3% of accounts receivable and airline revenues represent 25.9% of operating revenues for the year ended December 31, 2015. Environmental Remediation - Pursuant to the enabling legislation creating the Authority, the Airport completed an environmental audit in 1994. It is the opinion of the Authority that all audit findings have been resolved with no material adverse effect on the financial position of the Authority. In prior years, elevated levels of propylene glycol had been detected in Shaker Creek which runs through the Airport. The Authority now operates a glycol collection and disposal system completed in 1999 which successfully addresses this issue.

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Compliance Audits - The Authority participates in a number of programs that are fully or partially funded by grants received from other governmental units. Expenditures financed by grants are subject to audit by the appropriate grantor government or agency. An independent audit of these programs has been performed for the years ended December 31, 2015 and 2014 in compliance with: 1) requirements stated in the Single Audit Act of 1996 and Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards; 2) compliance requirements described in the Passenger Facility Charge Audit Guide for Public Agencies issued by the Federal Aviation Administration; and 3) compliance requirements described in the preliminary Draft Part 43 of the New York State Codification of Rules and Regulations applicable to state transportation assistance. The amounts, if any, of expenditures that may be disallowed by the granting government or agency cannot be determined at this time, although any such amounts, if any, are expected to be immaterial. Litigation - The nature of the business of the Authority generates certain litigation against the Authority arising in the ordinary course of business. The Authority is a defendant in various lawsuits. In the opinion of the Authority’s counsel the resolution of any legal actions in the aggregate will not have a material adverse effect on the financial position of the Authority. In addition, the Authority has acquired certain lands, buildings and air right easements based upon independent appraisals. Certain owners have filed claims against the Authority seeking amounts in excess of the appraised values. In the opinion of the Authority’s counsel, the resolution of these claims will not have a material adverse effect on the financial position of the Authority.

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Required Supplemental

Information

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As of the measurement date of March 31, 2015

Proportion percentage of net pension liability 0.00525%

Proportion amount of net pension liability 177,341$

Covered-employee payroll 1,599,482$

Authority's proportionate share of net pension liabilty as a percentage of covered-employee payroll 11.09%

Plan fiduciary net position as a percentage of total pension liability 97.90%

December 31, 2015Contractually required contribution $ 305,211

Contributions in relation to the contractuallyrequired contribution (305,211)

Contribution deficiency (excess) -$

Covered-employee payroll 1,599,482$

Contributions as a percentage of covered payroll 19.08%

Schedule for the Authority ContributionsNew York State and Local Employees' Retirement System

Data prior to 2015 is unavailable.

Albany County Airport AuthoritySchedule for the Authority's Proportionate Share of Net Pension Liability

New York State and Local Employees' Retirement System

Data prior to 2015 is unavailable.

Albany County Airport Authority

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Valuation dateActuarial value of

assets (AVA)Actuarial accrued liability

(AAL)

Unfunded actuarial accrued asset (liability)

(UAAL)Funded Ratio

Annual covered payroll

UAAL as a % of payroll

(1) (2) (3) (2) - (3) (2) / (3) (6) (4) / (6)(4) (5) (7)

December 31, 2015 $1,812,329 $3,131,944 ($1,319,615) 57.87% $1,743,009 75.71%December 31, 2014 $1,707,380 $3,131,218 ($1,423,838) 54.53% $1,667,061 85.41%December 31, 2013 $1,595,499 $3,075,878 ($1,480,379) 51.87% $1,705,000 86.83%December 31, 2012 $1,462,710 $3,079,341 ($1,616,631) 47.50% $1,616,000 100.04%December 31, 2011 $1,207,190 $3,267,283 ($2,060,093) 36.95% $1,858,000 110.88%December 31, 2010 $1,051,859 $3,157,605 ($2,105,746) 33.31% $1,858,000 113.33%December 31, 2009 $777,295 $2,506,648 ($1,729,353) 31.01% $1,858,000 93.08%December 31, 2008 $0 $3,226,067 ($3,226,067) 0.00% $1,881,000 171.51%

Albany County Airport Authority OPEB Trust Schedule of Funding Progress

December 31, 2015

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Other Supplemental

Information

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AuthorityYEAR Principal Interest Interest Subsidy Total2016 8,567,000$ 4,407,925$ (16,856)$ 12,958,069$ 2017 8,988,000 4,001,974 (13,277) 12,976,697 2018 9,334,000 3,647,713 (9,241) 12,972,472 2019 7,359,000 3,208,798 (4,802) 10,562,996 2020 7,000,000 2,863,550 - 9,863,550

2021 7,350,000 2,519,993 - 9,869,993 2022 7,705,000 2,173,012 - 9,878,012 2023 8,090,000 1,793,406 - 9,883,406 2024 8,340,000 1,436,087 - 9,776,087 2025 8,675,000 1,099,313 - 9,774,313

2026 9,080,000 700,463 - 9,780,463 2027 980,000 284,638 - 1,264,638 2028 1,030,000 242,987 - 1,272,987 2029 1,060,000 198,412 - 1,258,412 2030 1,110,000 150,987 - 1,260,987

2031 435,000 101,325 - 536,325 2032 455,000 82,050 - 537,050 2033 480,000 60,237 - 540,237 2034 365,000 37,250 - 402,250 2035 380,000 19,000 - 399,000

TOTAL 96,783,000$ 29,029,123$ (44,178)$ 125,767,945$

Albany County Airport AuthorityDebt Service Requirements to Maturity

GENERAL AIRPORT REVENUE BONDS AND EFC BONDS

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UNITED STATES - Department of AgricultureDept. of Agriculture - Wildlife Management Program 35,085$ 32,713$

STATE OF NEW YORKDepartment of Civil Service - Health Insurance 476,868 449,554 State and Local Employees’ Retirement System 305,211 315,057 Unemployment Insurance 5,510 5,605 Dept. of Taxation & Finance-Sales Tax 330,687 426,930 Dept. of Taxation & Finance-Petroleum Business Tax 122,039 126,759 DEC-Oil Spill Fee 127 - DEC-SPDES Program Fees & Permits 2,410 2,225 Total State of New York 1,242,852 1,326,130

COUNTY OF ALBANYDirect Costs: Sheriff 2,084,342 2,097,517 Code Enforcement 43,837 25,291

Dept. of Public Works - Salt for Roadways 40,688 33,515 Sewer District Charges 5,000 5,000 Sub Total 2,173,867 2,161,323 County Indirect Cost Allocation Plan - 12,614 Debt Service - Bond Principal & Interest - 81,180 Total County of Albany 2,173,867 2,255,117

LATHAM WATER DISTRICT - Water Service 123,737 105,517

TOWN OF COLONIE, RECEIVER OF TAXESSewer Taxes 93,639 63,661 Verdoy Fire Dept. 1,635 1,607 Albany County Tax 5,703 5,708 Town of Colonie Tax 3,633 3,863 School Taxes - North Colonie 25,321 25,010

Total Town of Colonie, Receiver of Taxes 129,931 99,849

VILLAGE OF COLONIEWastewaster Conveyance 7,500 5,000

TOTAL PAYMENTS TO OTHER GOVERNMENTAL ENTITIES 3,842,903$ 3,924,175$

2015 2014


Governmental Payments and Services

For the Years Ended December 31, 2015 and 2014

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Statistical This section of the Authority’s comprehensive annual financial report presents detailed information for understanding and supporting the information in the financial statements, note disclosures and required supplementary information.

Financial Trends Pages 76-79 These tables contain trend information to assist the reader understand how the Authority’s financial performance has changed over time. Revenue Capacity Pages 80-81 These tables contain trend information to assist the reader understand the Authority’s most significant revenue source, airline rates and charges. Debt Capacity Pages 82-85 These tables contain trend information to assist the reader understand the Authority’s current debt outstanding, debt history and the Authority’s ability to issue additional debt in the future. Demographic and Economic Information Pages 86-88 These tables contain trend information to assist the reader understand the environment within which the Authority’s financial activities take place. Operating Information Pages 89-100 These tables contain trend information to assist the reader understand the underlying factors affecting the Authority’s ability to generate revenue, highlighting trends in operations, activities and resources.

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2006 2007 2008 2009REVENUES

Airfield 5,881,654$ 5,597,334$ 6,828,222$ 7,303,064$ Fixed Based Operations 7,307,383 8,817,614 10,193,452 7,579,581 Terminal 7,406,907 7,574,748 7,689,690 6,513,311 Concessions 5,269,221 5,686,723 5,480,004 6,044,347 Ground transportation 10,885,205 11,340,151 11,122,678 10,818,594 Other 3,366,356 3,618,200 4,361,254 3,991,942

40,116,726 42,634,770 45,675,300 42,250,839

OTHER REVENUESInterest income 1,193,635 1,810,589 836,612 265,017 Passenger Facility Charges 4,165,815 4,081,962 3,716,492 4,077,806 Grant income - - 2,501,420 5,480,166 Insurance recovery 184,000 2,929 - - Investments received - 297,413 - - Improvement charges 276,300 276,300 276,300 368,400

5,819,750 6,469,193 7,330,824 10,191,389

TOTAL REVENUES 45,936,476 49,103,963 53,006,124 52,442,228

EXPENSESSalaries and benefits 12,299,502 12,302,838 12,706,397 12,036,671 Services and supplies 17,578,229 19,672,084 21,524,796 17,588,812 Depreciation 12,315,365 12,968,042 13,626,882 14,067,322

42,193,096 44,942,964 47,858,075 43,692,805

OTHER EXPENSESProperty damage 184,000 2,929 - - Grant expense - - 2,794,322 4,943,468 Interest expense 7,188,094 7,616,204 6,751,363 6,845,764 Amortization of bond issuance costs 61,003 77,677 125,335 130,653 Decrease in fair value of investments - 126,600 26,614 82,204

7,433,097 7,823,410 9,697,634 12,002,089

TOTAL EXPENSES 49,626,193 52,766,374 57,555,709 55,694,894

Capital Contributions 13,738,847 4,825,854 8,379,148 6,524,938 Special Item - - - - Extraordinary Item - - - -

INCREASE (DECREASE) IN NET POSITION 10,049,130$ 1,163,443$ 3,829,563$ 3,272,272$

NET POSITION AT YEAR END COMPOSED OF: Investment in Capital Assets, net of Related Debt 154,937,110$ 155,507,466$ 159,048,126$ 161,268,212$ Restricted 19,259,403 19,100,901 18,634,971 18,703,079 Unrestricted 8,474,800 9,226,389 9,981,222 10,965,300

182,671,313$ 183,834,756$ 187,664,319$ 190,936,591$

Source: Authority’s audited financial statements.

Albany County Airport AuthorityTotal Annual Revenues, Expenses and Changes in Net Position

For Years Ended December 31,

DRAFT

DRAFT FOR APPROVAL

76

2010 2011 2012 2013 2014 2015

6,249,734$ 6,620,031$ 6,517,132$ 6,382,280$ 6,320,065$ 6,412,351$ 8,339,501 10,816,078 9,732,965 9,641,415 10,348,396 8,570,119 5,760,454 5,549,272 5,220,736 5,146,616 4,816,946 4,950,470 6,135,012 6,531,954 6,490,578 6,390,371 7,027,934 7,268,718

10,695,016 10,737,419 11,035,611 10,998,265 11,575,593 13,089,872 3,772,841 3,739,595 3,703,440 3,656,336 3,505,150 3,850,200

40,952,558 43,994,349 42,700,462 42,215,283 43,594,084 44,141,730

196,224 102,137 94,418 84,959 54,043 20,739 5,043,851 4,832,209 4,843,563 4,693,348 4,777,691 5,080,183 3,442,758 1,112,504 344,845 366,420 292,938 292,000

- - - - - - - - - - -

368,400 368,400 368,400 368,400 368,400 368,400 9,051,233 6,415,250 5,651,226 5,513,127 5,493,072 5,761,322

50,003,791 50,409,599 48,351,688 47,728,410 49,087,156 49,903,052

12,532,967 12,608,658 12,858,828 13,385,948 13,375,148 13,519,423 17,354,401 20,064,093 17,939,145 18,275,162 18,948,402 17,850,888 13,585,503 13,406,698 13,537,373 13,716,881 13,957,515 13,893,673 43,472,871 46,079,449 44,335,346 45,377,991 46,281,065 45,263,984

- - - - - - 3,013,773 683,300 - - - - 5,961,984 6,971,497 6,615,097 6,255,548 5,870,629 5,463,254

145,928 269,204 164,459 156,676 133,008 109,988 - - - - - -

9,121,685 7,924,001 6,779,556 6,412,224 6,003,637 5,573,242

52,594,556 54,003,450 51,114,902 51,790,215 52,284,702 50,837,226

5,883,974 7,063,708 4,385,124 4,009,502 6,414,378 8,942,652 (553,347) - (980,110) - - - (169,007) - - - - -

2,570,855$ 3,469,857$ 641,800$ (52,303)$ 3,216,832$ 8,008,478$

164,991,633$ <1> 167,205,678$ 166,644,993$ 165,997,945$ 167,432,611$ 171,751,795$ 16,539,805 16,487,232 16,852,644 17,049,812 17,573,958 19,387,387 11,037,746 12,346,131 13,183,204 13,580,781 14,838,801 16,713,740

192,569,184$ 196,039,041$ 196,680,841$ 196,628,538$ 199,845,370$ 207,852,922$

<1> The 2010 Investment in Capital Assets, net of Related Debt was adjusted by $938,262 in accordance with GASB Statement 65. See the end of Note 2 - Summary of Significant Accounting Policies in the notes to the financial statements.

Albany County Airport AuthorityTotal Annual Revenues, Expenses and Changes in Net Position, Con't


DRAFT

DRAFT FOR APPROVAL

77

2006 2007 2008 2009

Cash Flows From Operating ActivitiesCash received from providing services 40,772,537$ 43,116,237$ 44,028,857$ 44,152,367$ Cash paid to suppliers (26,620,178) (30,878,585) (35,545,624) (29,110,669) Cash paid to employees (1,120,799) (1,190,541) (1,257,735) (1,248,160)

Net Cash Provided By Operating Activities 13,031,560 11,047,111 7,225,498 13,793,538

Cash Flows from Noncapital Financing ActivitiesGrant Income - - 2,501,420 5,480,166 Grant Expense - - (2,794,322) (4,943,468)

Net Cash Provided (Used) by Noncapital Financing Activities - - (292,902) 536,698

Cash Flows From Investing ActivitiesInterest received 1,151,141 1,853,089 832,708 265,803 Purchase of Investments - - - - Sale of Investments - - - 65,110 Interest on Passenger Facility Charges 235,444 238,560 112,411 43,285

Net Cash Provided by Investing Activities 1,386,585 2,091,649 945,119 374,198

Cash Flows From Capital and Related Financing ActivitiesPurchase of capital assets (20,863,387) (15,733,030) (8,971,021) (7,627,276) Principal payments on bonds and notes payable (5,879,556) (6,554,932) (6,885,016) (8,177,659) Interest paid (7,192,138) (7,647,211) (7,398,066) (6,835,858) Payment to refunding agent - - - - Proceeds from debt issuance 20,560,000 - 83,200,000 - Payment of 1997 refunding bonds - - (82,416,000) - Less: Cost of Issuance (98,929) - (889,198) - ANCLUC funds 27,795 (84,659) 18,689 100,492 Concession Improvement funds 104,252 119,314 99,384 (183,611) Improvement charges 276,300 276,300 276,300 368,400 Capital contributions 14,429,114 5,582,880 6,528,726 7,716,862 Passenger facility charges 4,002,738 3,928,677 3,613,380 3,921,553 Net Cash Provided (Used) By Capital and Related Financing Activities 5,366,189 (20,112,661) (12,822,822) (10,717,097)

Net increase (decrease) 19,784,334 (6,973,901) (4,945,107) 3,987,337

Cash and cash equivalents, beginning of year 26,511,273 46,295,607 39,321,706 34,376,599

Cash and cash equivalents, end of year 46,295,607$ 39,321,706$ 34,376,599$ 38,363,936$

Source: Authority’s audited financial statements

Albany County Airport AuthorityChanges in Cash and Cash Equivalents


DRAFT

DRAFT FOR APPROVAL

78

2010 2011 2012 2013 2014 2015

40,707,911$ 44,327,193$ 42,253,033$ 42,311,459$ 43,862,468$ 44,211,164$ (28,284,795) (31,992,962) (28,813,561) (30,404,614) (30,679,673) (31,277,486) (1,154,379) (1,099,021) (1,104,020) (1,149,945) (1,114,606) (1,143,581) 11,268,737 11,235,210 12,335,452 10,756,900 12,068,189 11,790,097

3,442,758 1,071,409 344,845 366,420 292,938 292,000 (3,013,773) (642,205) - - - -

428,985 429,204 344,845 366,420 292,938 292,000

204,908 102,137 94,418 85,056 54,043 20,739 (277,389) - - - - - 442,237 - - - - - 13,940 11,002 8,470 9,293 9,257 11,688

383,696 113,139 102,888 94,349 63,300 32,427

(8,080,522) (9,243,027) (5,954,942) (7,804,302) (8,249,851) (12,534,202) (3,531,847) (8,574,618) (8,736,422) (8,598,074) (8,102,182) (8,266,000) (5,931,827) (5,724,131) (5,502,063) (5,409,940) (5,136,989) (4,700,250)

(125,391,340) - - - - - 119,021,872 - - - - -

- - - - - - (2,007,569) - - - - -

1,139 (347,296) 449 490 395 (1,334) 89,745 44,668 67,457 337,258 (359,380) 101,374

368,400 368,400 368,400 368,400 368,400 368,400 7,077,968 6,579,972 3,488,992 4,411,353 4,826,042 10,209,459 5,036,950 4,850,569 4,794,831 4,727,885 4,745,288 4,939,384

(13,347,031) (12,045,463) (11,473,298) (11,966,930) (11,908,277) (9,883,169)

(1,265,613) (267,910) 1,309,887 (749,261) 516,150 2,231,355

38,363,936 37,098,323 36,830,413 38,140,300 37,391,039 37,907,189

37,098,323$ 36,830,413$ 38,140,300$ 37,391,039$ 37,907,189$ 40,138,544$

Albany County Airport AuthorityChanges in Cash and Cash Equivalents, Con't


DRAFT

DRAFT FOR APPROVAL

79

2006 2007 2008 2009

PRINCIPAL REVENUE SOURCESAIRLINE REVENUE

Landing Fees 3,711,782$ 3,328,473$ 4,422,523$ 4,770,538$ Landing Fee Surcharge 167,426 166,975 168,250 170,810 Apron Fees 854,022 916,131 893,046 879,251 Fixed Based Operations 1,886,304 2,645,682 2,916,524 3,040,483

Terminal Rents 5,970,930 6,096,652 6,422,724 5,273,885 Loading Bridge Rentals 564,292 542,738 542,738 508,181 TOTAL AIRLINE REVENUE 13,154,756 13,696,651 15,365,805 14,643,148

Percent of Total Revenues 28.6% 27.9% 29.0% 27.9%

NON-AIRLINE REVENUESParking 10,639,526 11,093,567 10,886,182 10,818,593 Rental Car 3,517,740 3,785,642 3,649,493 3,902,274 Other 12,804,704 14,058,910 15,773,820 12,886,824

TOTAL NON-AIRLINE REVENUES 26,961,970 28,938,119 30,309,495 27,607,691 Percent of Total Revenues 58.7% 58.9% 57.2% 52.6%

NON-OPERATING REVENUESPFCs 4,165,815 4,081,962 3,716,492 4,077,806 Grant Income - - 2,501,420 5,480,166 Interest 1,193,635 1,810,589 836,612 265,017 Insurance Recovery 184,000 2,929 - - Decrease in fair value of investments - 297,413 - - Other 276,300 276,300 276,300 368,400

TOTAL NON-OPERATING REVENUES 5,819,750 6,469,193 7,330,824 10,191,389 Percent of Total Revenues 12.7% 13.2% 13.8% 19.4%

TOTAL REVENUES 45,936,476$ 49,103,963$ 53,006,124$ 52,442,228$

Enplaned Passengers 1,447,553 1,440,385 1,380,483 1,318,819

TOTAL REVENUE PER ENPLANED PASSENGER 31.73$ 34.09$ 38.40$ 39.76$

SIGNATORY AIRLINES RATES AND CHARGESLanding Fee (per 1,000 lbs MGLW) 1.82$ 1.81$ 2.71$ 3.11$ Landing Fee Surcharge (per 1,000 lbs MGLW) 0.08 0.08 0.08 0.10 Apron Fees (per sq. foot) 1.05 1.10 1.48 1.46 Annual Terminal Rental Rates (per sq. foot) 82.58 83.42 84.00 79.61 Annual Loading Bridge Rental (per bridge) 37,619.00 36,183.00 36,978.00 36,299.00 Airline Cost per Enplanement: Airport Operations 7.78 7.67 8.91 8.80

Source: Authority’s audited financial statements and statistics reports

The Authority negotiated a new ten year airline agreement which governedthe calculation of rates and fees charged to signatory airlines effective January 1, 2011. A new five year agreement became effective January 1, 2011.

Albany County Airport AuthorityPrincipal Revenue Sources, Revenue per Enplaned Passenger and

Signatory Airlines Rates and Charges <1>For Years Ended December 31,

DRAFT

DRAFT FOR APPROVAL

80

2010 2011 2012 2013 2014 2015

3,843,738$ 3,964,651$ 4,041,201$ 4,035,420$ 3,934,458$ 4,051,727$ 169,427 168,015 168,400 - - - 807,430 847,651 810,760 797,936 811,176 823,188

3,261,577 3,979,252 3,031,163 3,289,020 3,135,354 3,767,429 4,530,851 4,358,719 3,980,775 3,925,842 3,697,979 3,654,048

533,360 501,336 528,303 471,669 437,980 623,867 13,146,383 13,819,624 12,560,602 12,519,887 12,016,947 12,920,259

26.3% 27.4% 26.0% 26.2% 24.5% 25.9%

10,428,141 10,478,603 10,787,568 10,724,464 11,311,640 12,810,052 4,263,770 4,718,960 4,723,808 4,679,586 4,854,354 5,053,412

13,114,264 14,977,162 14,628,484 14,291,346 15,411,143 13,358,007 27,806,175 30,174,725 30,139,860 29,695,396 31,577,137 31,221,471

55.6% 59.9% 62.3% 62.2% 64.3% 62.6%

5,043,851 4,832,209 4,843,563 4,693,348 4,777,691 5,080,183 3,442,758 1,112,504 344,845 366,420 292,938 292,000

196,224 102,137 94,418 84,959 54,043 20,739 - - - - - - - - - - - -

368,400 368,400 368,400 368,400 368,400 368,400 9,051,233 6,415,250 5,651,226 5,513,127 5,493,072 5,761,322

18.1% 12.7% 11.7% 11.6% 11.2% 11.5%

50,003,791$ 50,409,599$ 48,351,688$ 47,728,410$ 49,087,156$ 49,903,052$

1,264,381 1,242,399 1,244,976 1,215,076 1,230,376 1,297,749

39.55$ 40.57$ 38.84$ 39.28$ 39.90$ 38.45$

2.45$ 2.61$ 2.92$ 2.92$ 3.06$ 3.25$ 0.10 0.11 0.11 - - - 1.51 1.75 1.78 1.58 1.59 1.52

72.70 69.55 68.46 66.56 68.13 74.31 35,532.00 33,422.00 35,220.00 31,445.00 31,284.00 44,562.00

7.82 7.92 7.64 7.60 7.22 7.05

<1> The revenue basis to which these rates apply and their principal payers can be found on pages 90-91, 92-93 and 94-95

Albany County Airport AuthorityPrincipal Revenue Sources, Revenue per Enplaned Passenger and

Signatory Airlines Rates and Charges <1>For Years Ended December 31,

DRAFT

DRAFT FOR APPROVAL

81

2006 2007 2008

Ratio of Authority issued Revenue Bond Debt Service to Total Expenses

Principal 5,879,556$ 6,554,932$ 6,885,016$ Interest <1> 7,249,097 7,693,877 7,513,131 Total Debt Service 13,128,653$ 14,248,809$ 14,398,147$

Total Expenses 49,626,193$ 52,766,374$ 57,555,709$

Ratio of Debt Service to Total Expenses 26.46% 27.00% 25.02%

Debt Service per Enplaned Passenger

Net Debt Service 8,721,259$ 10,010,625$ 10,230,911$

Enplaned Passengers 1,447,553 1,440,385 1,380,483

Debt Service per Enplaned Passenger 6.02$ 6.95$ 7.41$

Outstanding Debt (Authority and County) per Enplaned Passenger

Outstanding debt by type: County of Albany Debt Issued for the Authority <2> 6,527,880$ 5,543,982$ 4,580,151$ General Airport Revenue Bond (GARB) 148,071,630 143,175,122 137,253,661 NYS EFC 6,920,238 6,310,821 5,694,808 Total Outstanding Debt 161,519,748$ 155,029,925$ 147,528,620$


Outstanding Debt per Enplaned Passenger 112$ 108$ 107$

Debt Limit per Enplaned Passenger

Debt Limit 285,000,000$ 285,000,000$ 285,000,000$


Debt Limit per Enplaned Passenger 197$ 198$ 206$

<1> Interest does not include capitalized interest or interest paid from bond proceeds.<2> The County pays this indebtedness and is reimbursed by the Authority.


Albany County Airport AuthorityRatios of Outstanding Debt


DRAFT

DRAFT FOR APPROVAL

82

2009 2010 2011 2012 2013 2014 2015

8,177,659$ 3,531,847$ 8,574,618$ 8,736,422$ 8,598,074$ 8,102,182$ 8,266,000$ 6,976,417 6,107,912 7,240,701 6,779,556 5,361,990 5,077,305 4,797,018

15,154,076$ 9,639,759$ <3> 15,815,319$ 15,515,978$ 13,960,064$ 13,179,487$ 13,063,018$

55,694,894$ 52,594,556$ 54,003,450$ 51,114,902$ 51,790,215$ 52,284,702$ 50,837,226$

27.21% 18.33% 29.29% 30.36% 26.96% 25.21% 25.70%

11,428,288$ 5,913,971$ 10,962,543$ 11,054,389$ 9,260,064$ 8,966,388$ 8,849,919$

1,318,819 1,264,381 1,242,399 1,244,976 1,215,076 1,230,376 1,297,749

8.67$ 4.68$ 8.82$ 8.88$ 7.62$ 7.29$ 6.82$

3,418,256$ 2,454,409$ 1,510,678$ 584,256$ 81,182$ -$ -$ 136,681,250 132,560,000 125,340,000 117,950,000 110,315,000 102,690,000 94,825,000

4,627,000 4,045,887 3,635,000 3,215,000 2,755,000 2,359,000 1,958,000 144,726,506$ 139,060,296$ 130,485,678$ 121,749,256$ 113,151,182$ 105,049,000$ 96,783,000$

1,318,819 1,264,381 1,242,399 1,244,976 1,215,076 1,230,376 1,297,749

110$ 110$ 105$ 98$ 93$ 85$ 75$

285,000,000$ 285,000,000$ 285,000,000$ 285,000,000$ 285,000,000$ 285,000,000$ 285,000,000$

1,318,819 1,264,381 1,242,399 1,244,976 1,215,076 1,230,376 1,297,749

216$ 225$ 229$ 229$ 235$ 232$ 220$

<3>Debt service does not include $5,145,000 of principal retired and certain accrued interest on $107,395,000 of bonds refunded in 2010 for which the Authority contributed $8,398,522 in cash on hand

to reduce the amount of refunding bonds issued and scheduled debt service due in 2010.

Albany County Airport AuthorityRatios of Outstanding Debt, Con't


DRAFT

DRAFT FOR APPROVAL

83

2006 2007 2008

NET REVENUESOperating Revenues 40,116,726$ 42,634,760$ 45,675,304$ Interest Income 1,193,635 1,225,878 597,990 Investments Received - 170,813 - Air Service Development - - - TSA (LEO) Reimbursement - - - Improvement Charges 276,300 276,300 276,300

Total Revenues 41,586,661$ 44,307,751$ 46,549,594$

LESS: Total Operating Expenses (29,877,731) (31,974,921) (34,231,189) LESS: Albany County Debt Service (1,311,243) (1,263,510) (1,202,184) LESS: Air Service Incentive Cost to Airport - - -

Net Revenues 10,397,687$ 11,069,320$ 11,116,221$

DEBT SERVICE1997 Revenue Bonds 6,941,298$ 6,989,961$ 388,433$ Less: PFC Revenues used for Debt Service (4,407,394) (4,238,184) (4,167,236) 1998 B & C Revenue Bonds 2,360,300 2,358,007 2,360,653 1999 NYS EFC Revenue Bonds 664,221 651,283 634,745 Less: 1999 NYS EFC Interest Subsidy (201,777) (188,258) (174,600) 2000 NYS EFC Revenue Bonds 281,054 276,551 275,149 Less: 2000 NYS EFC Interest Subsidy (30,635) (25,319) (18,996) 2000 B Revenue Bonds 955,940 960,402 957,753 2003 A Revenue Bonds 748,049 743,885 748,863 2004 NYS EFC Revenue Bonds 43,282 46,064 41,985 Less: 2004 NYS EFC Interest Subsidy (5,325) (4,716) (4,009) 2006 A & B Revenue Bonds 330,294 1,099,763 1,099,926 2006 C Revenue Bonds - 290,356 402,054 2008 A Refunding Bonds - - 6,348,023 2010 A Refunding Bonds - - - 2010 B Refunding Bonds - - - Less: Interest paid from bond proceeds (330,294) (290,356) -

Net Debt Service 7,349,013$ 8,669,439$ 8,892,743$

DEBT SERVICE COVERAGE <1> 1.41 1.28 1.25

<1> Does not include required amounts held in Bond Reserve Accounts as follows: 1997 Revenue Bonds 8,370,000$ 8,370,000$ -$

1998 B & C Revenue Bonds 2,447,415 2,447,415 2,447,415 1999 NYS EFC Bonds 442,237 442,237 442,237 2000 NYS EFC Bonds 237,494 237,494 237,494

2000 B Revenue Bonds 926,700 926,700 926,700 2003 A Revenue Bonds 514,100 514,100 514,100 2004 NYS EFC Bonds 38,831 38,831 38,831 2006 A & B Revenue Bonds 1,128,600 1,128,600 1,128,600 2006 C Revenue Bonds 404,263 404,263 404,263 2008 A Refunding Bonds - - 8,232,976 2010 A Refunding Bonds - - - Total Bond Reserve Accounts 14,509,640$ 14,509,640$ 14,372,616$


<1>Debt service does not include $5,145,000 of principal retired and certain accrued interest on $107,395,000 of bonds refunded in 2010 for which the Authority contributed $8,398,522 in cash on hand to reduce the amount of refunding bonds issued and scheduled debt service due in 2010.

Albany County Airport AuthorityRevenue Bond Debt Service Coverage


DRAFT

DRAFT FOR APPROVAL

84

2009 2010 2011 2012 2013 2014 2015

42,250,595$ 40,952,560$ 43,994,350$ 42,700,503$ 42,215,294$ 43,594,101$ 44,141,725$ 233,567 184,276 83,120 76,334 59,013 51,374 10,784 (79,087) - - - - - -

- - - - 75,000 - - - 428,984 429,204 344,845 291,420 292,938 292,000

368,400 368,400 368,400 368,400 368,400 368,400 368,400

42,773,475$ 41,934,220$ 44,875,074$ 43,490,082$ 43,009,127$ 44,306,813$ 44,812,909$

(29,625,492) (29,886,704) (32,675,747) (30,797,979) (31,661,110) (32,323,557) (31,319,579) (1,156,056) (1,080,407) (1,022,352) (967,198) (511,616) (81,180) -

- - - - - - (50,732)

11,991,927$ 10,967,109$ 11,176,975$ 11,724,905$ 10,836,401$ 11,902,076$ 13,442,598$

-$ -$ -$ -$ -$ -$ -$ (3,725,788) (2,806,622) (4,852,776) (4,461,589) (4,700,000) (4,213,099) (3,293,320) 2,444,052 1,455,142 - - - - -

617,141 577,873 443,618 451,094 452,309 453,637 452,972 (157,301) (143,792) (26,907) (25,819) (24,265) (22,283) (19,808) 279,829 - - - - - - (12,846) - - - - - - 957,471 511,813 - - - - - 748,637 746,692 748,577 744,250 742,130 474,876 464,391

41,289 40,893 39,362 38,642 72,452 - - (3,341) (2,673) (2,004) (1,336) (668) - -

1,099,188 1,102,531 1,099,788 1,101,051 1,099,875 1,102,502 1,103,706 402,048 401,838 401,429 400,822 400,013 403,996 402,588

6,902,639 3,963,413 - - - - - - 2,707,162 9,628,519 9,621,151 9,622,600 9,627,239 9,625,169 - 62,112 923,852 925,376 927,326 925,329 924,104 - - - - -

9,593,018$ 8,616,382$ 8,403,458$ 8,793,642$ 8,591,772$ 8,752,197$ 9,659,802$

1.25 1.27 1.33 1.33 1.26 1.36 1.39

-$ -$ -$ -$ -$ -$ -$ 2,447,415 - - - - - -

442,237 277,389 277,389 277,389 277,389 277,389 277,389 237,494 - - - - - - 926,700 - - - - - - 514,100 514,100 514,100 514,100 514,100 514,100 514,100

38,831 38,831 38,831 38,831 - - - 1,128,600 1,128,600 1,128,600 1,128,600 1,128,600 1,128,600 1,128,600

404,263 404,263 404,263 404,263 404,263 404,263 404,263 8,232,976 - - - - - -

- 9,523,517 9,523,517 9,523,517 9,523,517 9,523,517 9,523,517 14,372,616$ 11,886,700$ 11,886,700$ 11,886,700$ 11,847,869$ 11,847,869$ 11,847,869$

Albany County Airport AuthorityRevenue Bond Debt Service Coverage, Con't


DRAFT

DRAFT FOR APPROVAL

85

2010 vs. 2000 vs.2014 2010 2000 2000 1990 1990

PRIMARY TRADE AREAState of New York

Albany County 308,171 304,204 3.3% 294,565 0.7% 292,594Columbia County 62,122 63,096 0.0% 63,094 0.2% 62,982Fulton County 54,105 55,531 0.8% 55,073 1.6% 54,191Greene County 47,967 49,221 2.1% 48,195 7.7% 44,739Montgomery County 49,779 50,219 1.0% 49,708 -4.4% 51,981Rensselaer County 159,774 159,429 4.5% 152,538 -1.2% 154,429Saratoga County 224,921 219,607 9.5% 200,635 10.7% 181,276Schenectady County 155,735 154,727 5.6% 146,555 -1.8% 149,285Schoharie County 31,566 32,749 3.7% 31,582 -0.9% 31,859Warren County 64,973 65,707 3.8% 63,303 6.9% 59,209Washington County 62,372 63,216 3.6% 61,042 2.9% 59,330

State of MassachusettsBerkshire County 128,715 131,219 -2.8% 134,953 -3.2% 139,352

State of VermontBennington County 36,445 37,125 0.4% 36,994 3.2% 35,845

PRIMARY TRADE AREA 1,386,645 1,386,050 3.6% 1,338,237 1.6% 1,317,072

SECONDARY TRADE AREAState of New York

Delaware County 46,581 47,980 -0.2% 48,055 1.8% 47,225Dutchess County 296,579 297,488 6.2% 280,150 8.0% 259,462Essex County 38,679 39,370 1.3% 38,851 4.6% 37,152Hamilton County 4,715 4,836 -10.1% 5,379 1.9% 5,279Herkimer County 63,744 64,519 0.1% 64,427 -2.1% 65,797Otsego County 61,128 62,259 0.9% 61,676 1.9% 60,517Ulster County 180,445 182,493 2.7% 177,749 7.5% 165,304

State of ConnecticutLitchfield County 184,993 189,927 4.2% 182,193 4.7% 174,092

State of MassachusettsFranklin County 70,862 71,372 -0.2% 71,535 2.1% 70,092Hampden County 468,161 463,490 1.6% 456,228 0.0% 456,310Hampshire County 160,939 158,080 3.8% 152,251 3.9% 146,568

State of VermontAddison County 37,009 36,821 2.4% 35,974 9.2% 32,953Rutland County 60,086 61,642 -2.8% 63,400 2.0% 62,142Windham County 43,714 44,513 0.7% 44,216 6.3% 41,588Windsor County 56,014 56,670 -1.3% 57,418 6.2% 54,055

SECONDARY TRADE AREA 1,773,649 1,781,460 2.4% 1,739,502 3.6% 1,678,536

TOTAL PRIMARY AND SECONDARY TRADE AREA POPULATION 3,160,294 3,167,510 2.9% 3,077,739 2.7% 2,995,608

State of New York 19,651,127 19,378,102 2.1% 18,976,457 5.5% 17,990,455

United States 316,128,839 308,745,538 9.4% 282,171,936 13.5% 248,709,873

Sources: U.S. Department of Commece, Bureau of the Census

Albany International AirportPopulation in the Air Trade Area

DRAFT

DRAFT FOR APPROVAL

86

Rank Employer Industry 2015 2006

1 New York State State Government 51,409 53,800

2 St. Peter's Health Partners Health Care 8,363 3,348

3 U.S. Government Federal Government 7,901 6,900

4 General Electric Company Energy, Research, Industrial 7,000 7,000

5 Albany Medical Center Health Care 6,123 5,459

6 University of Albany Educational Services 4,700 N/A

7 Golub Corporation Retail Grocery, Headquarters, and Dist. Center 3,201 4,703

8 Hannaford Brothers Retail Grocery 3,000 3,580

9 Bechtel Marine Propulsion Corp. Research and development 3,000 N/A

10 County of Albany Government 2,512 2,995

11 Global Foundries Semiconductor Manufacturing 2,400 N/A

12 Ellis Medicine Health Care 2,397 1,686

13 Center for Disability Services Health Care 1,930 N/A

14 Glens Falls Hospital Health Care 1,904 2,193

15 Rensselear County Local Government 1,802 1,600

16 Rensselear Polytenchic Institute Educational Services 1,800 1,839

17 Shenendehowa School District Educational Services 1,800 1,900

18 City of Schenectady School District Educational Services 1,633 1,800

19 Empire Blue Cross/Blue Shield Health Insurance 1,600 1,637

20 City of Albany Local Government 1,488 1,493

21 Albany City School District Educational Services 1,453 1,270

22 Saratoga County Local Government 1,416 1,100

23 Saratoga Hospital & Nursing Home Health Care 1,400 N/A

24 Schenectady County Local Government 1,305 1,500

25 Northern Rivers Family Services Children and Family Services 1,215 1,600

26 St Mary's Healthcare Health Care 1,180 N/A

27 Stewart's Shops Corp. Dairy Products/Convenience Stores 1,132 1,310

28 National Grid Electric and Gas Utility 1,100 1,350

29 CDPHP Health Insurance 1,087 N/A

N/A - Not AvailableSources: Various

FTE Employees

Albany International AirportMajor Employers in Primary Air Trade Area

DRAFT

DRAFT FOR APPROVAL

87

Name County Public/Private 2015 2006

Excelsior College Albany Private 38,825 26,964

State University of New York at Albany Albany Public 17,195 17,033

Hudson Valley Comm. College Rensselaer Public 12,252 12,205

Rensselaer Polytechnic Institute Rensselaer Private 7,028 6,226

Schenectady Comm. College Schenectady Public 6,440 4,729

College Of Saint Rose Albany Private 4,500 5,149

Adirondack Comm. College Warren Public 4,249 3,495

Siena College Albany Private 3,139 3,336

The Sage Colleges Rensselaer Private 2,885 2,910

Skidmore College Saratoga Private 2,632 2,828

Fulton-Montgomery Comm. College Fulton-Montgomery Public 2,589 2,071

SUNY College of Agriculture & Tech at Cobleskill Schoharie Public 2,532 N/A

Union College Schenectady Private 2,242 2,252

Williams College Berkshire, MA Private 2,150 2,124

Columbia-Greene Comm. College Columbia-Greene Public 2,048 1,726

Massachusetts College of Liberal Arts Berkshire, MA Public 1,925 1,500

SUNY Empire State College Albany Public 1,568 15,743

Albany College Of Pharmacy Albany Private 1,565 1,153

Mildred Elley College Albany Private 1,537 500

Maria College Albany Private 866 1,007

Albany Medical College Albany Private 823 743

Southern Vermont College Bennington, VT Public 455 500

Bryant & Stratton Business Institute Albany Private 479 1,193

Albany Law School Albany Private 477 780

Bennington College Bennington, VT Private 400 523

Union Graduate College Schenectady Private 438 N/A

Bard College at Simon’s Rock Berkshire, MA Private 420 450

College of Nanoscale Science and Engineering Albany, NY Public 400 N/A

ITT Technical Institute Albany Private 291 N/A

Samaritan Hospital School of Nursing Rensselaer Private 163 N/A

Ellis Hospital School of Nursing Albany Private 155 111

Memorial Hospital School of Nursing Albany Private 126 N/A

New School of Radio and Television Albany Private 80 143

122,874 117,394

N/A - Not AvailableSources: Various

Enrollment

Albany International AirportColleges and Universities in Primary Air Trade Area

DRAFT

DRAFT FOR APPROVAL

88

Airport Code: ALBLocation: 7 miles Northwest of downtown Albany, New York, the capital of the State of New York Elevation: 285 ft.International: Customs / Immigration F.I.S. FacilityTower: TRACON 24 / 7 - 365FBO: Million Air

2006 2015Acres (+/-): 1,082 1,171

Runways: 1/19 North/South ILS / VOR / GPS 7,200 X 150 ft. 8,500 X 150 ft.10/28 East/West VOR / GPS 7,200 X 150 ft. 7,200 X 150 ft.

Terminal: Airlines - sq ft 94,995 90,623Tenants - sq ft 40,869 44,320Public/Common - sq ft 100,042 104,426Mechanical - sq ft 48,999 50,916Total - sq ft 284,905 290,285

Number of passenger gates 21 21Number of loading bridges 15 16Number of Concessionaires in Terminal 7 6Number of Rental Car Agencies in Terminal 5 6

Apron: Commercial Airlines - sq ft 810,901 810,901Cargo Airlines - sq ft 210,600 210,600FBO - sq ft 640,000 640,000

Parking: Spaces assigned Garage 1,907 1,912 Short-term 353 222 Long-term 1,117 1,468 Economy 2,783 2,286 Rental Cars 307 307 Employees 514 348

Total 6,981 6,543

Cargo: Air Cargo Building - sq ft 50,500 50,500

Employees: Authority 34.0 23.5Airport Operations 176.5 150.5Fixed Based Operator 34.0 35.0Total 244.5 209.0

Albany International AirportAirport InformationAs of December 31,

DRAFT

DRAFT FOR APPROVAL

89

Percent of Percent ofAIRLINE 2015 Total 2015 2014 Total 2014 2013

Southwest Airlines 557,183 42.9% 525,585 42.7% 504,095Delta Airlines 160,607 12.4% 112,905 9.2% 68,589American Airlines (formerly US Airways) 101,734 7.8% 84,127 6.8% 89,607American Eagle (Republic) formerly US Airways Express 91,520 7.0% 86,721 7.0% 98,369United Airlines 85,743 6.6% 69,742 5.7% 30,881American Eagle (Air Wisconsin) formerly US Airways E 68,805 5.3% 62,440 5.1% 43,099United Express (Commutair) 62,159 4.8% 51,507 4.2% 22,692Delta Connection (Endeavor, formerly Pinnacle) 29,856 2.3% 42,722 3.5% 78,580Delta Connection (Express Jet) 26,626 2.1% 38,219 3.1% 26,924United Express (Mesa) 25,002 1.9% 11,165 0.9% 17,467United Express (Express Jet) 16,517 1.3% 21,713 1.8% 81,039Cape Air 16,119 1.2% 16,802 1.4% 16,752United Express (Go Jet) 15,459 1.2% 13,390 1.1% 32,044American Eagle (Piedmont) formerly US Airways Express 10,851 0.8% 12,474 1.0% 14,080United Express (Republic) 8,354 0.6% 30,259 2.5% 36,109Delta Connection (Shuttle America) 6,473 0.5% 64 0.0%Jet Blue 5,492 0.4%United Express (Sky West) 4,862 0.4% 5,258 0.4%Delta Connection (Compass) 1,632 0.1% 4,265 0.3% 18,941American Eagle (PSA) formerly US Airways Express 1,170 0.1% 1,168 0.1% 6,935United Express (Trans States) 1,162 0.1%American Eagle (Mesa) formerly US Airways Express 382 0.0% 21,135 1.7% 10,216United Express (Shuttle America) 41 0.0% 214Delta Connection (Chautauqua) 14,558 1.2% 2,878United Express (Chautaugua) 3,401 0.3% 12,129Delta Connection (Go Jet) 756 0.1%Air Canada 3,436United Express (Colgan)Continental (Express Jet)Delta Connection (Comair)Continental Connection (Colgan)Continental Connection (Commutair)Delta Connection (Sky West)US Airways Express (Colgan Air)Delta Connection (Mesaba)US Airways Express (Chautaugua)Delta Connection (ASA)United Express (ASA)Northwest AirlinesNorthwest Airlink (Pinnacle)Northwest Airlink (Mesaba)Delta Connection (Freedom)Continental AirlinesAmerican Eagle Delta Connection (Big Sky)Delta Connection (Sky West)Independence AirSub Total 1,297,749 100.0% 1,230,376 99.9% 1,215,076

Charters 461 0.0% 1,009 0.1% 911TOTAL 1,298,210 100.0% 1,231,385 100.0% 1,215,987

Source: Albany County Airport Authority

Albany International AirportEnplaned Passengers

2006-2015

DRAFT

DRAFT FOR APPROVAL

90

2012 2011 2010 2009 2008 2007 2006504,987 511,735 511,636 511,094 501,437 516,216 488,646

72,590 46,606 18,251 87 45,32387,207 81,980 83,513 104,799 130,192 130,070 139,668

104,199 76,919 90,263 62,626 50,137 43,507 42,78251,913 64,408 66,191 75,828 70,027 76,867 60,07428,835 51,029 35,060 31,665 36,777 38,992 54,48618,07585,535 100,678 54,13012,05414,014 21,460 25,230 24,62398,820 36,282 26,60916,429 16,284 8,677 8,013 2,23718,078 7,489 47,605 52,875 58,784 60,273 37,69433,403 16,393 29,701 52,723 39,701 41,945 29,035

60

18,29610,992 2,665 18,447

47 1,993 2,270 1,985 17,298 31,58638 4,733 33,266 49,426 51,007 46,200

79 846 5,368 3,971 16,906 19,536 12,8252 47 61 25,482

10,743 576 4,437 5,061 66 540 345

4,392 4,482 4,782 4,153 7,077 7,760 7,98649,998 33,298

5,900 40,463 63,067 57,528 66,314 100,472 99,5705,278 1,762 26,189 40,369 50,476 41,514 45,4964,612 28,434 30,702 40,255 35,0903,843 23,615 8,001 9,201 5,463 5,805 12,0961,5341,230 6,902 8,408 7,092 10,011 13,661 14,211

146 12,302 30,69941 1,508 8,415

37,155 48,212 72,330 75,522 79,584 56,18618,491 12,284

193 63,724 85,038 98,125 98,73321,995 9,939 14,937 12,51621,435 17,109 2,46111,116 25,233 26,112 9,696

80735,344 43,828 47,147

192 51065,574

5981,244,976 1,242,399 1,264,381 1,318,819 1,380,483 1,440,385 1,447,553

904 1,131 1,493 1,600 1,988 2,436 2,6111,245,880 1,243,530 1,265,874 1,320,419 1,382,471 1,442,821 1,450,164

Albany International AirportEnplaned Passengers

2006-2015

DRAFT

DRAFT FOR APPROVAL

91

Percent of Percent ofCommercial Carriers 2015 Total 2015 2014 Total 2014 2013Southwest Airlines 563,978,000 35.9% 564,078,000 35.9% 556,334,000 Delta Airlines 182,901,118 11.7% 127,177,598 8.1% 87,394,799 American Airlines (formerly US Airways) 114,046,440 7.3% 91,538,758 5.8% 92,454,358 United Airlines 107,841,768 6.9% 85,883,301 5.5% 41,049,688 American Eagle (Republic) formerly US Airways Express 102,046,749 6.5% 31,496,000 2.0% 136,527,617 American Eagle (Air Wisconsin) formerly US Airways E 78,396,000 5.0% 69,325,000 4.4% 54,426,000 United Express (Commutair) 73,147,505 4.7% 62,790,000 4.0% 25,018,500 Delta Connection (Endeavor, formerly Pinnacle) 32,467,901 2.1% 46,824,798 3.0% 85,479,997 Delta Connection (Express Jet) 30,950,102 2.0% 41,728,699 2.7% 30,800,102 United Express (Mesa) 26,666,000 1.7% 12,328,000 0.8% 19,832,000 Cape Air 21,029,502 1.3% 21,029,500 1.3% 21,276,102 United Express (Express Jet) 16,833,427 1.1% 22,487,074 1.4% 87,352,775 United Express (Go Jet) 16,214,000 1.0% 15,075,000 1.0% 38,659,000 American Eagle (Piedmont) formerly US Airways Express 12,780,307 0.8% 14,116,804 0.9% 16,170,306 United Express (Republic) 9,052,000 0.6% 104,824,601 6.7% 45,756,000 Delta Connection (Shuttle America) 6,601,260 0.4% 72,310 0.0%Jet Blue 6,256,712 0.4%United Express (Sky West) 4,856,000 0.3% 5,511,000 0.4%Delta Connection (Compass) 1,824,972 0.1% 4,996,736 0.3% 22,259,441 American Eagle (PSA) formerly US Airways Express 1,476,401 0.1% 1,157,201 0.1% 8,104,000 United Express (Trans States) 1,241,634 0.1%Charters 1,164,000 0.1% 2,756,784 0.2% 2,500,198 American Eagle (Mesa) formerly US Airways Express 588,003 0.0% 24,402,000 1.6% 12,862,500 Delta Connections (Go Jet) 201,000 0.0% 1,072,000 0.1% 268,000 United Express (Shuttle America) 144,624 0.0% 462,795 Delta Connection (Chautauqua) 13,828,429 0.9% 2,850,784 United Express (Chautauqua) 3,574,118 0.2% 14,211,365 Air Canada 6,092,200 United Express (Colgan)Continental Connection (Colgan)Continental Connection (Express Jet)Delta Connection (Comair)Continental Connection (Commutair)US Airways Express (Colgan)Delta Connection (Sky West)Delta Connection (Mesaba)United Express (Sky West)US Airways Express (Chautauqua)Delta Connection (ASA)United Express (ASA)Continental AirlinesNorthwest AirlinesNorthwest Airlink (Pinnacle)Northwest Airlink (Mesaba)Delta Connection (Freedom)Delta Connection (Big Sky)American EagleDelta Connection (Sky West)Independence Air

1,412,705,425 90.0% 1,368,073,711 87.2% 1,408,142,527 Cargo CarriersUnited Parcel Service 100,192,000 6.4% 101,441,920 6.5% 99,121,840 Federal Express 50,886,000 3.2% 51,480,000 3.3% 50,651,000 Wiggins Airways 7,471,500 0.5% 7,493,598 0.5% 7,250,511 Ameriflght 4,273,641 0.3% 4,066,902 0.3% 3,996,509 Air NowDHLMisc Cargo Carriers 0.0% 0.0%

162,823,141 10.4% 164,482,420 10.5% 161,019,860 Grand Total 1,575,528,566 100.4% 1,532,556,131 97.7% 1,569,162,387


Albany International AirportAirline Landed Weight (lbs.)

2006-2015

DRAFT

DRAFT FOR APPROVAL

92

2012 2011 2010 2009 2008 2007 2006569,014,000 571,920,000 572,100,000 592,288,000 606,268,000 606,612,000 563,734,000 91,360,813 53,982,509 20,349,608 130,000 54,154,000 84,659,102 81,480,800 80,754,302 120,409,823 165,434,995 157,816,799 159,841,799 71,647,362 86,114,744 89,909,713 101,716,477 87,446,407 92,214,768 75,168,921

136,105,502 111,779,265 123,518,991 88,692,047 68,929,242 64,857,593 57,054,164 36,049,000 67,351,000 49,914,000 42,065,000 50,290,000 51,747,000 63,638,000 19,233,003 91,611,511 110,381,509 60,855,208 13,969,006 15,745,000 26,532,000 30,218,000 5,254,000 21,296,654 25,995,749 21,385,706 21,337,751 5,932,101

103,135,949 37,630,283 28,116,619 20,368,000 9,695,000 59,831,000 74,035,000 74,102,000 74,504,000 54,002,000 46,331,413 35,475,009 48,466,505 80,372,091 55,772,703 52,059,000 38,001,587

74,958

21,400,000 13,314,317 3,298,107 20,613,616

134,000 2,997,000 3,269,000 2,838,000 24,432,000 47,622,000 42,548 5,616,465 32,549,986 52,548,013 53,654,292 57,696,448

4,119,338 4,145,995 5,722,930 4,230,983 4,069,000 5,422,107 8,909,783 73,500 808,500 6,100,505 26,215,500 16,317,000 19,771,510 14,847,000

289,241 72,309 72,313 34,131,266 12,977,453 1,021,174 5,105,879 5,573,926 85,097 695,111 808,430

8,797,995 8,200,404 11,122,003 10,707,003 12,317,199 12,698,992 13,080,797 49,228,000 35,898,000 11,780,000 39,308,000 40,405,906 46,934,000 40,672,000 9,457,726 42,769,610 63,076,374 61,830,055 72,763,757 105,515,474 106,856,144 5,624,606 2,820,000 29,995,506 46,718,101 64,628,000 48,663,000 51,025,000 5,515,502 29,176,504 10,453,508 9,694,500 4,933,500 11,073,502 18,625,199 4,617,006 19,266,005 25,450,508 25,958,476 31,632,517 40,199,202 39,567,647 1,504,000

225,299 15,802,598 37,117,103 47,000 42,549 1,829,609 10,293,329

42,377,404 54,193,008 77,199,700 79,578,000 84,128,000 63,177,000 19,552,000 12,831,000 1,361,544 1,560,000

196,200 74,479,110 98,588,000 124,050,000 132,614,109 23,443,397 10,227,296 16,625,206 14,681,201 22,951,402 19,266,996 3,315,699 13,956,071 29,389,767 39,934,580 17,287,881

325,280 11,843,996 36,951,763 45,339,119 33,744,507

7,800,000 526,860

1,448,273,847 1,484,333,528 1,516,417,163 1,613,441,399 1,691,306,633 1,753,689,173 1,755,804,771

98,839,841 100,395,604 98,503,762 98,163,713 97,346,000 97,764,985 99,582,507 51,171,000 51,337,000 42,670,000 42,947,679 42,687,000 41,735,000 43,869,000 7,378,000 7,514,000 7,684,009 7,520,270 7,667,000 7,812,267 8,134,500 3,961,299 4,054,101 4,142,604 5,646,338 245,000

184,014 2,397,398 2,323,206 3,793,000 26,503,603 50,877,892 51,589,707

5,401 45,901 8,752,406 11,340,584 161,355,541 163,346,606 153,000,375 154,462,014 176,846,001 209,265,756 218,309,298

1,609,629,388 1,647,680,134 1,669,417,538 1,767,903,413 1,868,152,634 1,962,954,929 1,974,114,069

Albany International AirportAirline Landed Weight (lbs.)

2006-2015

DRAFT

DRAFT FOR APPROVAL

93

Percent of Percent ofCommercial Carriers 2015 Total 2015 2014 Total 2014 2013Southwest Airlines 8,632 19.4% 8,710 19.6% 8,670 Cape Air 6,140 13.8% 6,140 13.8% 6,212 United Express (Commutair) 3,960 8.9% 3,380 7.6% 1,286 American Eagle (Air Wisconsin) formerly US Airways E 3,336 7.5% 2,950 6.6% 2,316 American Eagle (Republic) formerly US Airways Express 2,760 6.2% 2,838 6.4% 3,688 Delta Airlines 2,718 6.1% 1,842 4.1% 1,250 American Airlines (formerly US Airways) 1,576 3.5% 1,380 3.1% 1,462 United Airlines 1,428 3.2% 1,186 2.7% 590 Delta Connection (Endeavor, formerly Pinnacle) 1,048 2.4% 1,696 3.8% 3,482 Delta Connection (Express Jet) 940 2.1% 1,350 3.0% 852 United Express (Mesa) 796 1.8% 368 0.8% 592 United Express (Express Jet) 768 1.7% 1,022 2.3% 3,946 American Eagle (Piedmont) formerly US Airways Express 754 1.7% 832 1.9% 954 United Express (Go Jet) 484 1.1% 450 1.0% 1,154 Delta Connection (Shuttle America) 300 0.7% 2 0.0%United Express (Republic) 292 0.7% 1,016 2.3% 1,476 United Express (Sky West) 176 0.4% 226 0.5%Jet Blue 88 0.2%United Express (Trans States) 58 0.1%Delta Connection (Compass) 50 0.1% 134 0.3% 596 American Eagle (PSA) formerly US Airways Express 40 0.1% 46 0.1% 344 American Eagle (Mesa) formerly US Airways Express 16 0.0% 664 1.5% 350 Delta Connection (Go Jet) 6 0.0% 32 0.1% 8 United Express (Shuttle America) 4 0.0% 16 Delta Connection (Chautauqua) 650 1.5% 134 United Express (Chautauqua) 168 0.4% 668 Charters 58 0.1% 41 Air Canada 734 United Express (Colgan)Continental Connection (Express Jet)US Airways Express (Colgan)Continental Connection (Commutair)Delta Connection (Comair)Continental Connection (Colgan)Delta Connection (Sky West)Delta Connection (Mesaba)US Airways Express (Chautauqua)United Express (Sky West)Delta Connection (ASA)United Express (ASA)Northwest AirlinesNorthwest Airlink (Pinnacle)Northwest Airlink (Mesaba)Delta Connection (Freedom)Continental AirlinesAmerican EagleDelta Connection (Big Sky)Delta Connection (Sky West)US Airways Express (Trans States)Independence AirUnited Express (Air Wisconsin)

36,370 81.8% 37,140 83.5% 40,821 Cargo CarriersWiggins Airways 1,758 4.0% 1,760 4.0% 1,706 United Parcel Service 952 2.1% 964 2.2% 942 Ameriflight 550 1.2% 526 1.2% 518 Federal Express 514 1.2% 520 1.2% 468 Air NowAirborne ExpressMisc Cargo Carriers

3,774 8.5% 3,770 8.5% 3,634 Grand Total 40,144 90.3% 40,910 92.0% 44,455


Albany International AirportAircraft Operations

2006-2015

DRAFT

DRAFT FOR APPROVAL

94

2012 2011 2010 2009 2008 2007 2006 20059,018 9,152 9,182 9,510 9,698 9,868 9,324 8,4806,218 7,590 6,244 6,230 1,732

998 1,534 2,866 2,124 1,788 2,140 2,202 2,712 6883,700 3,034 3,360 2,396 1,872 1,780 1,580 481,318 786 342 10 906 3,9221,426 1,388 1,348 2,070 2,944 2,692 2,782 5,4101,028 1,232 1,280 1,538 1,474 1,632 1,250 1,5303,438 4,440 2,360

442 470 792 988 956

4,716 1,716 1,286 2,668 2,100 2,754 4,538 3,102 2,838 2,162 1,469

608 288 1,786 2,210 2,212 2,224 1,612 2

2 264 1,530 2,470 2,522 2,712 2,312356 88 550

4 102 134 108 872 1,738 7662 18 166 122 614 538 404 1,870

4 4 2 944 792612 48 246 264 4 34 38

60267 69 56 42 40 52 48 76

1,060 988 1,340 1,290 1,484 1,530 1,582 1,3701,780 1,158

432 1,962 2,964 2,902 3,382 4,986 5,094 5,116324 1,368 1,866 1,904 2,646 3,566 3,432 2,966298 1,582 606 562 324 1,332 2,244 9,368214 120 1,238 1,974 2,368 1,856 1,970 1,796188 1,268 1,246 1,514 1,312 64 6 462 1,088 2 86 484 7942 640 920

1,222 1,624 2,414 2,428 2,658 2,296 254832 546

1,356 1,696 2,090 2,130 2,6561,004 438 712 628 1,762

764 740 142 496 1,380 2,162 970 22

1,774 2,150 2,454 2,67238 1,410

208 8 262

28 3,644928

42,997 46,577 46,956 49,530 48,420 52,020 52,306 62,473

1,740 1,687 1,770 1,768 1,804 1,870 1,914 2,248936 950 934 928 926 928 960 978526 524 542 642 32 518 520 516 528 526 514 540 534

40 496 456 884 612524 1,014 1,026 674

2 6 1,606 2,928 3,620 3,8283,722 3,687 3,762 3,906 5,914 7,710 8,944 8,874

46,719 50,264 50,718 53,436 54,334 59,730 61,250 71,347

Albany International AirportAircraft Operations, Con't

2006-2015

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Year Airlines Cargo General Aviation Military Total

2006 52,258 8,944 49,633 6,830 117,665

2007 51,968 7,710 45,688 5,409 110,775

2008 48,380 5,882 34,048 5,214 93,524

2009 49,488 3,906 34,579 6,540 94,513

2010 46,900 3,762 30,698 7,137 88,497

2011 46,508 3,687 25,980 4,226 80,401

2012 42,932 3,722 24,322 4,543 75,519

2013 40,780 3,676 23,873 4,436 72,765

2014 37,082 3,770 18,124 2,316 61,292

2015 36,370 3,774 17,376 2,481 60,001

-30.4% -57.8% -65.0% -63.7% -49.0%


Annual CompoundedGrowth 2006-2015

Albany International AirportAircraft Operations

2006-2015

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Albany International AirportAirlines Serving the Albany International Airport

MAJORS / NATIONALSAmerican Airlines

Delta Air LinesJet Blue Airways

Southwest AirlinesUnited Airlines

REGIONAL / COMMUTERSAir Wisconsin Airlines d/b/a American Eagle

CommutAir d/b/a United ExpressEndeavor d/b/a Delta Connection

Express Jet Airlines d/b/a Delta ConnectionExpress Jet Airlines d/b/a United Express

Go Jet Airlines d/b/a United ExpressHyannis Air Service d/b/a Cape Air & Nantucket Airlines

Mesa Air d/b/a United ExpressPiedmont Airlines d/b/a American Eagle

Republic Airlines d/b/a US Airways ExpressSky West d/b/a United Express

TransStates d/b/a United Express

ALL-CARGO CARRIERSFederal Express

United Parcel ServiceAmeriflight

Wiggins Airways

As of December 31, 2015Source: Albany County Airport Authority

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CARRIER NON-STOP SERVICE ONE-STOP, SAME-PLANE SERVICE

American Airlines Charlotte (CLT) Cleveland (CLE) - Air Wisconsin Chicago (ORD) Nassau (NAS) - Envoy Philadelphia (PHL) Portland, Maine (PWM) - Piedmont Washington National (DCA) Raleigh/Durham (RDU) - Republic San Jose, Costa Rica (SJO)

Syracuse (SYR)

Delta Air Lines Atlanta (ATL) - Endeavor Detroit (DTW)

Minneapolis (MSP)

JetBlue Fort Lauderdale (FLL)Orlando (MCO)

Southwest Airlines Baltimore (BWI) Atlanta (ATL)Chicago (MDW) Austin (AUS)Fort Lauderdale (FLL) Charleston (CHS)Fort Myers (RSW) Dallas (DAL)Las Vegas (LAS) Islip (ISP)Orlando (MCO) Louisville (SDF)Tampa (TPA) Nashville (BNA)

Rochester (ROC)San Diego (SAN)San Juan (SJU)St. Louis (STL)

United Airlines Chicago (ORD) Hartford (BDL) - Expressjet Washington Dulles (IAD) - Mesa

As of March 2016Source: Official Airline Guide Schedule, February 2016

SCHEDULED JET AIRLINE SERVICE

Albany International AirportMajor Carrier Airline Service

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CARRIER NON-STOP SERVICE ONE-STOP, SAME-PLANE SERVICE

Cape Air Boston (BOS)Massena (MSS)Ogdensburg (OGS)

United Express - Commutair New York Newark (EWR)

Washington Dulles (IAD)

As of March 2016Source: Official Airline Guide Schedule, February 2016

SCHEDULED COMMUTER AIRLINE SERVICE

Albany International AirportCommuter Airline Service

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Market Length Rank Passengers Rank Passengers Rank PassengersOrlando MH 1 217,640 1 192,540 1 287,660 Southeast Florida (1) MH 2 165,990 2 153,200 3 154,600 Tampa MH 3 138,850 3 131,370 5 147,350 Chicago MH 4 117,280 5 115,940 4 151,590 Baltimore SH 5 103,370 4 116,020 2 220,710 Washington, DC (2) SH 6 85,450 6 86,530 7 99,630 Las Vegas LH 7 80,100 7 83,830 6 110,170 Atlanta MH 8 76,440 8 73,160 8 80,400 Charlotte SH 9 65,560 9 63,270 Denver MH 10 63,870 11 55,570 10 57,360 Los Angeles LH 11 60,760 10 56,810 9 73,340 San Francisco LH 12 55,940 12 55,010 Phoenix LH 13 52,060 13 41,980 12 56,140 Dallas/Ft. Worth MH 14 44,480 14 41,620 14 42,720 Minneapolis MH 15 40,870 16 37,870 19 36,520 Houston MH 16 40,000 17 35,800 15 42,540 Fort Myers MH 17 39,070 15 38,170 San Diego LH 18 34,960 18 35,790 16 40,550 Raleigh/Durham SH 19 33,670 19 34,670 11 56,650 Seattle/Tacoma LH 20 33,410 21 29,100 18 38,010

* Notes:SH Short Haul = 0 to 600 milesMH Medium Haul = 601 to 1,800 milesLH Long Haul = over 1,801 miles

(1) Includes Fort Lauderdale, Miami, and West Palm Beach(2) Includes National and Dulles

N/A - Not AvailableSource: O & D Passenger Survey of Airline Passenger Traffic, U.S. DOT, Databank 12

Included in Tampa

N/A

N/A

Albany International AirportPrimary Origination and Destination Passenger Markets

2015 2014 2006

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Compliance

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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS To the Members Albany County Airport Authority We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the business-type activities and fiduciary funds of the Albany County Airport Authority (the Authority), a component unit of the County of Albany, New York, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, and have issued our report thereon dated ________, 2016. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

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Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Latham, NY , 2016

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Federal NYS Federal *Project Project Percent CFDA Number Number Participation Description Of Project Number Federal State Federal State

CAPTITAL CONTRIBUTIONS:

112-12 1A00.01 90.00% Airfield Lighting Electrical Vault Rehabilitation 20.106 903,105 50,173 132,426 7,357

117-13 1A00.06 90.00% Electrical Vault Phase 2 20.106 173,430 9,635 27,921 1,551

118-13 1A00.07 90.00% Runway Sand Storage/Winter Operations Bldg 20.106 1,993,844 110,769 112,453 6,247

121-13 1A00.10 90.00% Airport Safety Equip-ARFF Truck (3,000 Gallon Capacity) 20.106 589,444 39,999 589,444 32,747

122-14 1A00.11 90.00% Terminal Security Access Control Improvement 20.106 438,728 24,374 443,418 24,633

123-14 1A00.12 90.00% High-Speed Automated Doors (33-Units) 20.106 698,859 38,825 171,128 9,507

124-14 1A00.13 90.00% Snow Removal Equipment 20.106 1,007,101 55,950 1,025,453 56,970

125-14 1A00.14 90.00% Glycol Collection, Treatment and disposal System Improvement 20.106 943,740 52,430 788,124 43,785

126-14 1A00.15 90.00% Runway 01-19 Pavement and Centerline Lighting Rehabilitation 20.106 4,247,774 235,987 2,094,485 116,360

127-15 1A00.16 90.00% Airfield Illuminated Sign Replacement (137-Units) 20.106 450,495 25,028 190,076 10,560

128-15 1A00.17 90.00% Terminal Roofing Rehabilitation 20.106 1,257,571 69,865 1,236,993 68,722

1913.14 90.00% Hangar 211 Renovation and Expansion - 3,780,000 - 1,710,144

1759.76 80.00% CNG Facility Improvement 20.205 240,000 - 19,600 -

TOTAL CAPITAL CONTRIBUTION 12,944,091$ 4,493,035$ 6,831,521$ 2,088,583$

NON-OPERATING GRANTS:N/A N/A N/A TSA Law Enforcement Officer Cooperative Agreement 97.090 292,000$ -$ 292,000$ -$

TOTAL NON-OPERATING GRANTS 292,000$ -$ 292,000$ -$

GRAND TOTAL 13,236,091$ 4,493,035$ 7,123,521$ 2,088,583$

(*) The remaining percentage is shared equally between the State of New York and the Authority.See accompanying Notes to Schedule of Expenditures of Federal and New York State Department of Transportation Financial Assistance.

TotalGrant Amount

Year Ended 12/31/15Expenditures

Albany County Airport AuthoritySchedule Of Federal Financial and NYS DOT Assistance

December 31, 2015

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Albany County Airport Authority Notes to Schedule of Expenditures of Federal and

New York State Department of Transportation Financial Assistance For the Year Ended December 31, 2015

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Scope of Audit Pursuant to OMB Circular A-133

The Albany County Airport Authority (Authority) is a body corporate and politic constituting a public benefit corporation. The Schedule of Expenditures of Federal and New York State Department of Transportation Financial Assistance includes all of the federal award programs and the New York State Department of Transportation matching grant award for the FAA’s Airport Improvement Act (CFDA #20.106) administered by the Albany County Airport Authority, an entity defined in the financial statements.

Basis of Accounting

The accompanying Schedule of Expenditures of Federal and New York State Department of Transportation Financial Assistance was prepared on the accrual basis of accounting.

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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

To the Members Albany County Airport Authority Report on Compliance for Each Major Federal Program We have audited the Albany County Airport Authority’s (the Authority) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Authority’s major federal programs for the year ended December 31, 2015. The Authority’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Authority’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Authority’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Authority’s compliance.

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Opinion on Each Major Federal Program In our opinion, the Albany County Airport Authority complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2015. Report on Internal Control over Compliance Management of the Authority is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Authority’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR THE NEW YORK STATE DEPARTMENT OF TRANSPORTATION FINANCIAL ASSISTANCE

PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY NEW YORK STATE CODIFICATION OF RULES AND REGULATIONS

To the Members Albany County Airport Authority Report on Compliance We have audited the Albany County Airport Authority (the Authority), a component unit of the County of Albany, New York’s, compliance with the types of compliance requirements described in the Preliminary Draft Part 43 of the New York State Codification of Rules and Regulations (NYCRR), that could have a direct and material effect on its state transportation assistance program for the year ended December 31, 2015. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to the state transportation assistance program. Auditor’s Responsibility Our responsibility is to express an opinion on the Authority’s compliance for the state transportation assistance program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Preliminary Draft Part 43 of NYCRR. Those standards and the Preliminary Draft Part 43 of NYCRR require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the state transportation assistance program has occurred. An audit includes examining, on a test basis, evidence about the Authority’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the state transportation assistance program. However, our audit does not provide a legal determination of the Authority’s compliance.

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Opinion In our opinion, the Albany County Airport Authority complied, in all material respects, with the types of compliance requirements referred to above that are applicable to its state transportation assistance program for the year ended December 31, 2015. Report on Internal Control over Compliance Management of the Authority is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Authority’s internal control over compliance with the types of requirements that could have a direct and material effect on the state transportation assistance program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the state transportation assistance program and to test and report on internal control over compliance in accordance with the NYCRR, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of the state transportation assistance program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the state transportation assistance program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the state transportation assistance program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Preliminary Draft Part 43 of the New York State Codification of Rules and Regulations. Accordingly, this report is not suitable for any other purpose.

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Albany County Airport Authority Schedule of Findings and Questioned Costs

For the Year Ended December 31, 2015 A. SUMMARY OF AUDIT RESULTS 1. The auditor’s report expresses an unmodified opinion on the financial statements of

the Albany County Airport Authority. 2. No material weaknesses were identified during the audit of the financial statements. 3. No instances of noncompliance material to the financial statements of the Albany

County Airport Authority were disclosed during the audit. 4. No material weaknesses were identified during the audit of the major federal award

program. 5. The auditor’s report on compliance for the major federal award program for the

Albany County Airport Authority expresses an unmodified opinion. 6. There were no audit findings related to the major federal award program for the

Albany County Airport Authority. 7. The Airport Improvement Program (CFDA #20.106), including the New York State

Department of Transportation (NYSDOT) matching grants for this program was the major program for the year ended December 31, 2015.

8. The dollar threshold used to distinguish between Type A and B programs was

$300,000. 9. The Albany County Airport Authority was considered a low-risk auditee. B. FINDINGS - FINANCIAL STATEMENT AUDIT NONE C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AND NYS

DOT AWARD PROGRAM AUDIT NONE

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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR THE PASSENGER FACILITY CHARGE PROGRAM AND

ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE FEDERAL AVIATION ADMINISTRATION

To the Members Albany County Airport Authority Report on Compliance We have audited the Albany County Airport Authority (the Authority), a component unit of the County of Albany, New York’s, compliance with the types of compliance requirements described in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration (Guide), that could have a direct and material effect on its Passenger Facility Charge Program for the year ended December 31, 2015. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its Passenger Facility Charge Program. Auditor’s Responsibility Our responsibility is to express an opinion on the Authority’s compliance for the Passenger Facility Charge Program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Guide. Those standards and the Guide require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the Passenger Facility Charge Program has occurred. An audit includes examining, on a test basis, evidence about the Authority’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the Passenger Facility Charge Program. However, our audit does not provide a legal determination of the Authority’s compliance.

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Opinion In our opinion, the Albany County Airport Authority complied, in all material respects, with the types of compliance requirements referred to above that are applicable to its Passenger Facility Charge Program for the year ended December 31, 2015. Report on Internal Control over Compliance Management of the Authority is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Authority’s internal control over compliance with the types of requirements that could have a direct and material effect on the Passenger Facility Charge Program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the Passenger Facility Charge Program and to test and report on the internal control over compliance in accordance with the Guide, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of the Passenger Facility Charge Program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the Passenger Facility Charge Program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the Passenger Facility Charge Program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration. Accordingly, this report is not suitable for any other purpose.

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Quarter EndedPFC Charges

ReceivedInterest Earned

Total Received

Expenditures on Approved Projects

Beginning Balance 79,923,964$ 2,714,467$ 82,638,431$ 77,366,843$ 5,271,588$

3/31/2015 1,040,210 2,752 1,042,962 987,996 6/30/2015 1,476,417 2,745 1,479,162 987,996 9/30/2015 1,157,610 2,965 1,160,575 987,996

12/31/2015 1,265,147 3,226 1,268,373 329,332 Total 2015 4,939,384 11,688 4,951,072 3,293,320 1,657,752

Total Program to Date 84,863,348$ 2,726,155$ 87,589,503$ 80,660,163$

PFC Funds to be used for future debt service payments: 6,929,340$

PFC and Interest 12/31/2014 12/31/2015 PFC Net IncomeReceived PFC Receivable PFC Receivable Per Financials

4,951,072$ (345,637)$ 474,748$ 5,080,183$

Albany County Airport AuthoritySchedule of Passenger Facility Charges

Collected and Expended

For the Year Ended December 31, 2015

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

A. Scope of Audit Pursuant to September 2000 Passenger Facility Charge Audit

Compliance and Reporting Guide for Public Agencies. The Albany County Airport Authority is a body corporate and politic, constituting a public benefit corporation. The Schedule of Passenger Facility Charges Collected and Expended includes all the PFCs and the interest earnings thereon collected by the Authority beginning May 1, 1994 through December 31, 2015. Passenger Facility Charges are collected pursuant to a Federal Aviation Administration (FAA) approved application in 1994 to Impose $40,726,364. During 1996, the Authority requested and received approval to increase the amount of PFCs to $116,888,308 projected to be collected through the year 2022. Effective September 1, 2009, the Authority implemented an approved change the PFC collection from $3.00 per passenger to $4.50 per passenger, with a current estimated collection period through 2020. B. Basis of Accounting The above schedule was prepared on an accrual basis of accounting. Passenger Facility Charges are recorded as deferred revenue until used for debt service payments under an FAA approved application to use.

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Albany County Airport Authority Passenger Facility Charge Program

Schedule of Findings and Questioned Costs For the Year Ended December 31, 2015

A. SUMMARY OF AUDIT RESULTS

1. No material weaknesses were identified during the audit of the passenger facility program.

2. The auditor’s report on compliance for the passenger facility charge program expresses an unmodified opinion. 3. There were no audit findings related to the passenger facility charge program.

B. FINDINGS AND QUESTIONED COSTS NONE

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Biographies of the Members of the Albany County Airport Authority

Rev. Kenneth J. Doyle, Chair is a native of Troy, New York. He attended the Mater Christi Seminary in Albany, New York and later graduated with a Master of Arts in philosophy from Basselin College, Catholic University of America in Washington. D.C. Father Doyle is a graduate of the Theological College, Catholic University of American, Washington D.C. He was ordained in 1966. Father Doyle later graduated from Albany Law School and was admitted to the New York State Bar in 1978. Father Doyle has undertaken a number of assignments for the Roman Catholic Church including instructor in religion at Cardinal McCloskey High School, Albany, NY; Assistant Editor of the Evangelist diocesan newspaper; Bureau Chief National Catholic News Service, Rome, Italy; Director of Government Relations, New York State Catholic Conference; Albany, New York and Director for Media Relations, United States Catholic Conference, Washington, DC. Father Doyle currently serves as Pastor, Parish of Mater Christi, Albany, New York and as Chancellor for Public Information, Roman Catholic Diocese of Albany. Anthony Gorman, Secretary is a lifelong resident of Capital Region and lives in Colonie. He is a graduate of The Albany Academy and Georgetown University. Anthony Gorman has been principal in The Gorman Group, a highway construction company, since 1972. He has been continuously active in numerous charitable and civic groups for the last 25 years. He currently is a trustee at The Fort Orange Club in Albany. Dorsey M. Whitehead, Treasurer, is a native of Rocky Mount, North Carolina, is a graduate of Virginia State University, Webster University and Northwestern University. A much decorated military retiree, he flew and instructed both fixed and rotary wing aircraft. Dorsey is also a retiree of the New York State Senate as a Legislative Analyst. He serves on several boards and belongs to numerous fraternal, civic and service organizations. Dorsey volunteers with the American Cancer Society and the Watervliet Arsenal Retirement Services Office. He resides in Albany and enjoys bridge, tennis, gardening and reading. Lyon M. Greenberg, M.D. is a Dartmouth College and John Hopkins Medical School graduate and the founding partner of the Capital Region Otolaryngology Head and Neck Group in Albany, New York since 1964. Dr. Greenberg has held numerous positions on medical committees, including President of the Upstate New York Alumni Association at Johns Hopkins University; National Program Chairman, Section on Otolaryngology, American Academy of Pediatrics; Executive Committee, Section on Otolaryngology, American Academy of Pediatrics; CME Chairman, Section on Otolaryngology, American Academy of Pediatrics; Legislative Chairman, New York State Society of Otolaryngologists; Secretary/Treasurer of The Child’s Hospital; President of New York State Society of Otolaryngologists; member of the founding Committee of the American Society of Pediatric Otolaryngology; President of the Eastern New York Dartmouth Alumni Club; Vice-President of Congregation Beth-Abraham Jacob and Member of the Dr. David Axelrod Committee at the School of Public Health SUNY. Dr. Greenberg has

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received numerous awards over his career including The Willard W. Eggleston Memorial Botany Prize (1954) (Dartmouth College); Outstanding Service Award (1973) (Dartmouth College); Air Defense Command Commendation, U.S.A.F. (1962); Air Force Commendation Medal, U.S.A.F. (1962) and The Class of 1954 Award (2004) (Dartmouth College). Dr. Greenberg currently resides in Slingerlands with his wife Marcia and has four grown children. Patricia M. Reilly enjoyed a 30-year career in New York State and Local government. As the Department of Motor Vehicles’ Deputy Commissioner for Customer Service, she was an architect of DMV’s “Reinvent” program, which won national praise for its forward thinking on the role of customer service in government. She also served as the Chief Legislative Representative for the New York City Council in Albany, where she represented the Speaker before the Legislative and the Executive branch. Finally, she served as Nassau County’s Executive Director of the Traffic and Parking Violations Agency and was cited in a Newsday editorial for turning around an agency that was labeled by the Nassau County Comptroller as “the worst run agency in the worst run county in America”. Ms. Reilly holds a BA and MA from St. John’s University and taught Public Administration in their Government and Politics Department for 10 years. She currently is a consultant and resides in Slingerlands. Paula T. Wilkerson, originally from Virginia, has been a resident of Albany County for the past 30 years. Throughout her professional career, Paula has devoted her life to public service. Most recently, her career has included management and leadership positions with the New York State Legislature, and the City and County of Albany. Paula also served for many years in the not for profit community. Currently, she is employed by the New York State Office of the State Comptroller. She is a graduate of the State University of New York Empire State College with a degree in Business Management and Economics and currently resides in the City of Albany. DRAFT

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Biographies of the Albany County Airport Authority Senior Staff

John A. O'Donnell, PE, is the Chief Executive Officer of the Authority and is responsible for the oversight of the affairs of the Authority. Prior to his appointment in 2003, Mr. O’Donnell served as Chief Operating Officer (2000-2003) and Director of Project Development (1996-2000) for the Authority. Prior to the Authority, Mr. O'Donnell served as Director of Consultant Services for the Office of General Services for the State of New York and Assistant to the Chief Engineer of Callanan Industries. William J. O’Reilly, CPA, is the Chief Financial Officer of the Authority and is responsible for financial planning, budgeting, operating and capital accounting procedures and controls, and financial policies and procedures. Mr. O’Reilly was previously employed from 1986-2008 with the Office of the State Comptroller for the State of New York where he held positions in accounting, auditing, public authority administration, cash and debt management, and budget and policy analysis. Peter F. Stuto, Esq., Airport Counsel, is responsible for the day to day legal affairs of the Authority. Mr. Stuto was most recently Senior Assistant Counsel in the Office of the Majority Counsel of the New York State Assembly. Mr. Stuto has held positions of financial consultant with Merrill Lynch, attorney with Hiscock & Barclay, and Floor Counsel to New York State Senate Minority Leader.

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AGENDA ITEM NO. 2.2

Airlines Rates and Charges Settlement and

Revenue Sharing Calculation Report for the year ended December 31, 2015 with draft

consultant report.











BACKUP MATERIALS:






2015

AIRLINE RATES AND CHARGES

SETTLEMENT AND REVENUE SHARING TRANSFER CALCULATION


MARCH 14, 2016

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March 31, 2016 Members of the Albany County Airport Authority Administration Building, 2nd Floor Albany International Airport Albany, New York 12211

Re: Rates and Charges Settlement and Revenue Sharing Transfer Calculation for Fiscal Year 2015

Honorable Members of the Authority:

The Albany County Airport Authority (the Authority) is required, pursuant to the terms of the 2006 Airline Use and Lease Agreement (the Airline Agreement), as renewed through December 31, 2015, to perform certain calculations using audited financial information for such fiscal year (the Settlement Calculation). The Settlement Calculation must be performed within 180 days following the close of each fiscal year. Authority staff presents the results of each fiscal year’s Settlement Calculation in a report titled the Airline Rates and Charges Settlement and Revenue Sharing Transfer Calculation (the Settlement Report).

As requested by the Authority, we have reviewed the Settlement Report covering fiscal year 2015 to assess its accuracy, completeness, and conformity with requirements. In connection with this review of the 2015 Settlement Report, we examined the 2015 Settlement Calculation, the Airline Agreement, and such other documents and calculations as were needed by us to achieve the necessary level of comfort with the accuracy and completeness of the 2015 Settlement Report.

We found the operating revenues and operating expenses presented in the 2015 Settlement Report to be in agreement with the Authority’s Comprehensive Annual Financial Report for the year ended December 31, 2015, and with the 2015 Settlement Calculation. We believe the methodology used in the 2015 Settlement Calculation is consistent with the requirements of the Airline Agreement and established practices.

We are pleased to have been of service to the Authority in this matter.

Respectfully submitted,

LeighFisher

ALB


ALBANY INTERNATIONAL AIRPORT

INTRODUCTION This report presents the 2015 Signatory Airline rates and charges settlement and revenue sharing transfer calculation for Albany International Airport (Airport), as provided for in Schedule “G” of the 2006 Airline Use and Lease Agreement (Agreement). The results are based upon the Authority’s financial statements as audited by Marvin & Company, PC, an independent public accounting firm. The Authority and the Airlines completed negotiations in 2006 for a five year Airline Use and Lease Agreement to expire December 31, 2010 with an option for one five year renewal. During 2010, a five year renewal was executed, extending the Agreement to December 31, 2015, and a second five year renewal option was added which could extend the agreement to December 31, 2020. Under the Agreement the Authority charges signatory rates to carriers who have executed the Agreement ("Signatory Airlines") and non-signatory rates to those who have not ("Non-Signatory Airlines"). The Agreement permits Signatory Airlines to designate a non-signatory airline as an affiliate by providing a payment guarantee, thereby enabling its affiliate to enjoy the benefits of Signatory Airline Rates and Charges. As of December 2015, there were a total of five signatory passenger carriers, twelve signatory affiliate carriers, and two signatory cargo carriers operating at the Airport. Overview:

Airport revenues and expenses in 2015 were impacted by certain factors, each of which had a significant effect on the rates and charges settlement calculation. These factors include:

Enplaned passengers on scheduled carriers for 2015 were 1,297,749, a 67,373

or 5.5% increase from 1,230,376 enplanements in 2014 and was an increase of 76,877 or 6.3% higher than the 2015 budget of 1,220,872.

Total commercial passenger airline landed weight for 2015 was 1,411,541

thousand pounds (M-lbs), a 43,468 M-lbs or 3.2% increase from 1,368,073 M-lbs in 2014 and was an increase of 55,678 M-lbs or 4.1% higher than the 2015 budget of 1,357,027 M-lbs.

Total cargo landed weight for 2015 was 162,823 M-lbs, a 1,659 M-lbs or 1.0%

decrease from 164,482 in 2014 and was an increase 7,874 M-lbs or 4.9% higher than the 2015 budget of 154,949 M-lbs.

Further information explaining each of these items is included in the following sections of this report.

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Budget ActualRevenues (before Revenue Sharing) 46,066,144$ 46,668,645$

ExpensesOperating & Non-Capital Equipment 34,083,197 31,319,579 Debt Service, net of PFCs 9,120,235 9,769,698 Capital Expenditures 1,826,157 1,845,586 Reserves 42,221 42,221 Total Expenses 45,071,810 42,977,084

Funds Remaining 994,334$ 3,691,561$

Revenue SharingAuthority (50%) 497,167$ 1,845,781$ Less: Cost of Air Service Incentives -$ (50,732)$ Authority Net Share 497,167$ 1,795,049$

Airlines (50%) 497,167 1,845,781 Total 994,334$ 3,640,829$

Rates SettlementLanding Fee:

Budget rate calculation 3.23$ Final rate per settlement 3.25$ 30,917$

Terminal Rental Fee:Budget rate calculation 74.78$ Final rate per settlement 74.31$ (31,283)

Apron Fee:Budget rate calculation 1.68$ Final rate per settlement 1.52$ (38,236)

Loading Bridge Fee:Budget rate calculation 36,826$ Final rate per settlement 44,562$ 105,236

Total Rates and Charges Settlement 66,634

Revenue Sharing (1,845,781) Total Due to the Airlines (1,779,147)$

The results for 2015 after including the Rates and Charges adjustments and the results of the Revenue Sharing calculation can be summarized as follows: The final rates and charges settlement and revenue sharing calculation for 2015 will result in the Authority crediting the Airlines $1,779,147. The settlement impact on the Rates and Charges can be summarized as follows:

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The remaining sections of this report discuss in detail the various elements of the rates and charges settlement together with the revenue sharing calculation for 2015. Tables 1 through 4 present a detailed comparison of 2015 budget versus the audited financial statements. Tables 5 through 10 present the rates and charges settlements and the revenue sharing transfer calculation. The net settlement and revenue sharing for each signatory airline is summarized in Table 11. REVENUES Table 1 presents budget versus audited revenues for 2015. Revenues in 2015, after the settlement and revenue sharing were $44,822,864 lower than the amount budgeted of $45,568,977 by $746,112 or 1.6%. Primary variances from the budgeted amounts include the following: Commercial and Cargo Airline Revenues: Revenues from the airlines and cargo carriers for landing fees, including the revenue

sharing credit of $553,734, resulted in final revenues being lower than the amounts budgeted by $210,569. The landing fee as budgeted was $3.23 and the final settlement calculated a rate of $3.25 due to lower than anticipated deicing revenues expenses. This resulted in a settlement due from the signatory airlines and cargo carriers of $30,917.

Airline terminal rental revenues, including the revenue sharing credit of $1,292,046

resulted in final revenues being lower than the amount budgeted by $543,439. The terminal rental rate after the settlement was $74.31 versus the budgeted at $74.78; this resulted in a settlement credit due the signatory carriers of $31,283.

Apron fee revenues, a 10% allocation of the landing fee requirement, including a settlement credit of $38,236 resulted in final revenues being below budget by $33,640 due to a decrease in the 10% landing fee requirement in the landing fee calculation. The final apron fee rate was $1.52 per square foot versus the $1.68 rate budgeted.

Loading bridge revenues, including the settlement due of $105,235 resulted in final revenues being $145,131 higher than the budget due to higher than budgeted expenses.

Fixed Based Operator (FBO) Revenues: As of September 1, 2005, the Authority acquired the physical assets of the FBO and engaged a management company, currently R.E.W. Investment (d/b/a Million Air) to perform all of the daily operations. Highlights from 2015 were as follows:

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The sales of Jet A and AvGas fuels to general aviation customers were $1,027,959 or 17.9% below the budgeted amount. The number of Jet A and AvGas gallons sold in total were 1,037,783, an increase of 44,434 or 4.5% as compared to 993,349 budgeted for 2015. The net results for the sales of Jet A (revenues minus the cost of sales) for 2015 was $1,626,755 or 5.8% higher than budgeted. The net results for the sales of AvGas for 2015 was $71,245 or 18.6% higher than budgeted.

Auto and Diesel fuel sales to the airlines were $126,915 or 29.5% lower than the budget

due to lower fuel prices. The Authority bills each commercial and cargo airline a fee for the transfer of their fuel

from the fuel farm to their aircraft (into-plane fees) and a fee per gallon of the fuel and glycol that passes through the Authority owned fuel farm (fuel farm fees). During 2015, into-plane fees were $117,987 or 16.7% below budget due to less commercial aircraft operations than budgeted. Fuel farm fees were $26,262 or 5.0% below budget due to a decrease in the gallons of glycol usage for 2015.

General Aviation landing fees were $36,723 or 12.0% lower than the budget due to a decrease in GA activity. General Aviation aircraft parking fees were $23,156 or 8.4% higher than the budget also due to the decrease in GA activity.

AvGas Commercial Fuel Sales were $225,219 or 26.4% below budget. The cost of sales for AvGas Commercial fuel also decreased of $224,773 or 28.6%, resulted in net revenues being $445 or 0.7% lower than budgeted. This is due to a decrease in the fuel prices.

Deicing services performed for both the commercial airlines and the general aviation

customers were $342,785 or 26.4% lower than budgeted. The cost of sales for deicing was $104,716 lower than budget resulting in the net deicing revenues being $238,069 or 47.1% lower than budget due to decreased deicing activity during the winter season.

Rental payments are collected from tenants in the FBO facilities and hangars. Service

fees are also collected from aviation customers for ground handling, labor and other ancillary services. In 2015, rents of the hangar and ramp were $10,473 or 3.9% above budget and ancillary customer services were $28,551 or 56.0% higher than budget due to more than anticipated ground handling services.

Non-Airline Terminal Revenues: Non-Airline terminal revenues such as non-airline space rental, TSA space rental,

tenant maintenance and utility reimbursement were in total $1,913 lower than the budget of $623,863.

Ground Transportation Revenues: Parking revenues were $1,565,663 or 13.9% higher than the budget. The increase in

parking revenues is a combination of increased enplanements, an increase in the

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number of parked cars and a parking rate increase in October 2015. Access fee revenues was $11,176 or 4.2% higher than budget.

Concessions:

Revenues generated from the concessions totaled $7,268,718. This was $153,902 or

2.2% higher than budgeted due primarily to higher revenues from rental cars, advertising and retail.

Other Airport: The revenues generated from other airport sources were $3,850,200. This was

$107,927 or 2.9% higher than the budget of $3,742,273.

Other (Non-Operating) Revenues: Investments Earnings were $7,740 or 59.5% above budget. Revenues from the grant for the TSA (LEO) Reimbursement were $292,000, in line with

the 2015 budget.

Revenues from Improvement Charges were $368,400, in line with the 2015 budget.

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Budget ActualSalaries Benefits Total Salaries Benefits Total

Airport Mgmt 6,441,091$ 3,038,222$ 9,479,313$ 6,214,193$ 2,837,357$ 9,051,550$ FBO 1,302,856 507,317 1,810,173 1,287,088 447,993 1,735,081 Authority 1,769,960 1,152,483 2,922,443 1,749,595 983,196 2,732,791 Total 9,513,907$ 4,698,022$ 14,211,929$ 9,250,876$ 4,268,546$ 13,519,422$

EXPENSES Table 2 presents the 2015 adopted budget and audited expenses by category and cost center. The 2015 actual expenses were $31,319,579 and were below the budget of $34,083,197 by $2,763,618 or 8.1%. The majority of categories had lower than budgeted expenses with the major exception being FBO Cost of Sales (Jet and AvGas purchases), grounds and vehicle maintenance. Personal Services and Employee Benefits are for AvPorts, Million Air and the Authority is summarized as follows:

The primary variances in each of the cost centers are a result of the following: Airfield expenses were $484,114 or 15.9% under budget due primarily to savings

in salaries and snow removal supplies and glycol system maintenance. Terminal expenses were $301,936 or 5.9% under budget due primarily to

savings in salaries, benefits and utilities.

Loading Bridge expenses were $58,681 or 21.9% over budget due to higher than anticipated expenses for loading bridge maintenance.

Parking expenses were $140,828 or 4.0% under budget due to savings in

salaries and benefits and utilities. Landside expenses were $11,192 or 1.0% over budget due to pavement repairs

in the industrial park and tree removal. ARFF expenses were $81,353 or 4.8% over budget due primarily to higher

overtime. Operations expenses were $15,551 or 1.8% over budget due to expenses for

non-capital equipment that was not budgeted. Security expenses were $302,206 or 11.2% under budget primarily due to lower

than budgeted County Sheriff’s expenses. Vehicle/Equipment Maintenance expenses were $49,230 or 3.6% over budget

due to expenses for non-capital equipment that was not budgeted.

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The FBO Commercial expenses were $355,446 or 11.6% under budget due to savings in salaries and benefits and lower than budgeted deicing product cost due to a mild winter season in the last quarter of 2015.

The FBO General Aviation and Facilities expenses were $1,156,073 or 20.7%

under budget due to lower than budgeted cost of sales for Jet and AvGas purchases due to lower fuel prices.

FBO Administration expenses were $31,251 or 4.6% under budget. Airport Management Administration expenses were $2,611 or 0.3% under

budget. Authority Administration expenses were $205,160 or 4.9% under budget due

primarily due to the GAAP presentation of GASB 68-Pensions.

COST CENTER ALLOCATIONS

Under the Airline Use and Lease Agreement, the expense budget includes seven direct costs centers: airfield, terminal, loading bridges, parking, landside, FBO commercial and FBO General Aviation and five indirect costs centers: ARFF, operations, security, vehicle/equipment maintenance, and administration-including Airport Management, FBO and Authority. The expenses for four of the five indirect costs centers (excluding administration) are allocated to the direct costs centers based on an analysis of the staff hours worked or the related activities that occurred during the year. After those indirect costs are allocated to the direct cost centers, administration is allocated based on the total actual direct and indirect costs for each direct cost center. The allocated percentages for 2015 are set forth in Table 2-2. DEBT SERVICE A summary of 2015 debt service requirements and the allocation by cost centers is shown in Table 3. The details for the required County reimbursement and for each of the eight Revenue Bond issues by the Authority are shown as follows:

County of Albany General Obligation (G.O.) Bonds (Table 3-1) Series 2003 A General Airport Revenue Bonds (Table 3-2) Series 2006 A & B General Airport Revenue Bonds (Table 3-2) Series 2006 C General Airport Revenue Bonds (Table 3-2) Series 2010 A Refunding Bonds (Table 3-2), which is in part offset by

Passenger Facility Charges (PFC’s) (Table 3-4) Series 2010 B Refunding Bonds (Table 3-2) 1999 NYS Environmental Facilities Corporation (EFC) Revenue Bonds

(Table 3-3)

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In total, actual debt service expenditures in 2015 were $649,463 over budget due primarily to $658,662 less PFC funds used towards the 2015 payment of the interest on the Series 2010 A Refunding Bonds.

CAPITAL EXPENDITURES FUND CONTRIBUTION Table 4 shows the calculation of the Capital Expenditures Fund Contribution. In the 2006 Airline Use and Lease Agreement, capital expenditures up to $1.5 million are not subject to the signatory Airlines majority-in-interest (MII) vote. The $1.5 million shall be adjusted by the same percentage as the increase or decrease in non-airline revenues over the preceding year. The amount of the capital expenditures fund contribution calculated for 2015 was $1,845,586 or $19,429 more than the amount budgeted of $1,826,157. The basis for this calculation is set forth in Article 9 of the Agreement.

RATES AND CHARGES IMPLICATIONS All settlement calculations are based on the methodology set forth in the Airline Use and Lease Agreement. There are individual settlement calculations for landing fees, landing fee surcharges, apron fees, terminal rental rates, and loading bridge charges. Upon completion of the settlement calculation, the revenues for each of these items are updated to reflect the adjusted revenues and then a revenue sharing calculation is applied. Below is a summary of each of the settlement areas:

Table 5 presents the landing fee revenues budgeted versus actual. The calculated

signatory landing rate for 2015 of $3.25 is determined by taking the Net Airfield Requirement and dividing by the signatory airline and cargo landed weight. The signatory landing fee rate budgeted in 2015 was $3.23. This $0.02 increase was due to a decrease in deicing operations during the last quarter of 2015.

Table 5-1 presents the allocation of the $0.02 landing fee rate differential resulting

in a $30,917 landing fee settlement due from the signatory carriers. The individual settlement for each signatory airline and cargo carrier is calculated by multiplying the $0.02 times their landed weight to arrive at the settlement amount.

Table 6 and Table 6-1 presents the apron fee rate calculation and settlement. The

apron fee of $823,188 is an allocation equal to 10% of the airfield Total Requirement. The amount billed during 2015 was $861,424 resulting in a credit of $38,236 due to the signatory carriers. This amount is allocated to the carriers based on the amount of apron area (in square feet) leased to each of the signatory carriers.

Table 7 presents the terminal rental rate calculations budgeted versus actual. The

calculated signatory terminal rental rate for 2015 of $74.31 is determined by taking the Net Terminal Requirement and dividing by the total rentable terminal space. The terminal rental rate budgeted in 2015 was $74.78, or a $0.47 decrease. The decrease in the rate is principally due space occupied by some of the airlines on a month-to-month basis that is not included in the budget. Also, lower than

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anticipated expenses in 2015 accounted for this decrease. Table 7-1 presents the allocation of the $0.47 terminal rental settlement credit

which results in $31,283 due the signatory carriers. $22,925 of the settlement is an allocation to each of the signatory carriers is based on their pro-rated share of the airline area utilized in the terminal. Per the Agreement, the amount allocated to the baggage claim area is 20% split equally to each airline and 80% based on each signatory airline’s enplanements, accounting for $8,358 of the terminal rental settlement.

Table 8 presents the loading bridge settlement. The total loading bridge

requirement was $623,867 and the amount billed was $518,632. This resulted in a $105,235 settlement due from the signatory carriers allocated based on the number of bridges each airline utilizes.

CALCULATION OF REVENUE SHARING TRANSFERS Exhibit G-3 of the Agreement provides the methodology for the calculation of the net revenue sharing between the Authority and the signatory passenger airlines. This calculation allows the passenger signatory airlines to share in any net funds remaining after fulfillment of all the Airport’s requirements.

Table 9 presents the calculation and allocation of funds remaining. For 2015, the

funds remaining, after including all of the above settlements, was $3,691,561 of which 50%, or $1,845,780, is the Airlines’ share. Per the Agreement, the airline share is allocated 70% to the terminal, $1,292,046, and 30% to the airfield, $553,734.

Table 9-1 shows the allocation of the airfield portion of the revenue sharing. The

amount of $553,734 is distributed to each of the passenger signatory carriers based on their total 2015 landed weight.

Table 9-2 shows the allocation of the terminal portion of the revenue sharing. The

amount of $1,292,046 is distributed to each of the passenger signatory carriers based on their prorated share of the 2015 total airline portion of the terminal rentable space and common use space.

Table 10 presents the Airline Cost per Enplanement for 2015. This calculation is

after including all the settlement and revenue sharing calculation shown in Tables 6 through 9. For 2015, the airline cost per enplanement from airport operations was $7.05. This is a decrease of 12.4% from the $8.05 anticipated based on the adopted budget.

ALLOCATION OF 2015 SETTLEMENT AND REVENUE SHARING CALCULATION

Table 11 presents a summary showing the allocation for each of the settlement

items and the revenue sharing amounts to each of the signatory carriers for the year 2015.

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Table 1


Albany International Airport

2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationREVENUES

Budget Audited

2015 2015

AIRFIELD

Airline Landing Fees $4,438,751 $4,605,459

Airline Airfield Revenue Sharing (149,150) (553,734)

Cargo Landing Fees 511,146 538,454

Glycol Disposal Fee 346,035 280,147

Airline Apron Fee 856,828 823,188

TSA Apron Fee 883 903

Tenant Maintenance 55,000 52,156

Control Tower Rental 665,776 665,776

$6,725,269 $6,412,348

FBO 6,966,082

Jet A Fuel Sales $5,401,533 $4,362,235

Avgas Fuel Sales General Aviation 336,667 348,005

Auto Gas Fuel Sales 116,313 87,363

Diesel Fuel Sales 314,292 216,327

Into-plane 708,007 590,020

Fuel Farm 526,821 500,559

General Aviation Landing Fees 305,327 268,604

General Aviation Parking Fees 274,319 251,163

Avgas Fuel Sales Commercial 852,566 627,347

Deicing Type I - Sprayed 598,000 352,826

Deicing Type IV - Sprayed 80,920 43,285

Deicing Type I - Consortium 471,580 413,973

Deicing Type IV - Consortium 109,080 117,128

Deicing - GA 39,700 29,283

General Aviation Tenants 271,963 282,436General Aviation Customer Services 51,014 79,565

$10,458,102 $8,570,119

TERMINAL

Airline Space Rental $4,545,502 $4,946,092

Airline Terminal Revenue Sharing (348,017) (1,292,046)

TSA Space Rental 421,234 421,234

Nonairline Space Rental - Flat Rate 56,958 51,616

Nonairline Space Rental 145,671 149,100

Loading Bridge Rentals 478,736 623,867

Tenant Maintenance 16,000 22,676

Utility Reimbursement 26,000 27,929

$5,342,084 $4,950,468

GROUND TRANSPORTATION 6,242,515

Parking $11,244,389 $12,810,052

Access Fees 268,644 279,820

$11,513,033 $13,089,872

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Table 1



2015 Airline Rates & Charges Settlement and Revenue Sharing Calculation

REVENUES (page 2 of 2)

Budget Audited

2015 2015

CONCESSIONS

Rental Cars $4,994,700 $5,053,412

Food and Beverage 669,086 667,539

Retail 667,000 707,000

Advertising 235,000 282,789

Foreign Currency 26,000 30,354

Museum Shop 216,594 252,450

Operating Permits 134,358 123,603

Telephone - Payphones 4,904 3,836

Telephone - Tenants 77,500 74,882

Phone Cards 88 30

Bank ATMs 56,138 36,396

Vending Machines 26,448 29,427

Baggage Cart Concessions 7,000 7,000

$7,114,816 $7,268,718

OTHER AIRPORT

Land Rental $263,325 $258,995

Industrial Park 405,169 434,474

T Hangars 108,688 100,104

Tie Downs 3,646 3,443

T Hangar Avgas Fuel Sales 44,215 63,295

Parking Garage Space Rent 79,868 79,868

Hangar Rentals 258,501 272,688

Building Rental 158,004 81,891

Cargo Building Rental 865,780 916,746

Aircraft Maintenance & Service Center 72,336 83,029

State Executive Hangar/Maint 1,247,083 1,247,083

Utility Reimbursement 75,657 93,741

Reimbursement of Property Taxes 44,000 35,357Internet and Cable Access 8,000 8,520

Fingerprinting 16,000 19,898

Tenant Maintenance 5,000 0

Purchasing Proposals 7,000 4,405

Scrap and Equipment Sales 20,000 45,671

Other 60,000 100,992

$3,742,273 $3,850,200

TOTAL REVENUES $44,895,578 $44,141,725

OTHER REVENUES

Interest Earnings $12,999 $20,739

TSA (LEO) Reimbursement 292,000 292,000

Improvement Charges 368,400 368,400

$673,399 $681,139

TOTAL REVENUES $45,568,977 $44,822,864

TOTAL REVENUES BEFORE REVENUE SHARING $46,066,144 $46,668,645

Airport Operations $34,934,642 $37,417,387

FBO Operations $10,458,102 $8,570,119

Other Revenues $673,399 $681,139

Total Revenues $46,066,144 $46,668,645

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Table 2




SUMMARY OF EXPENSES

Budget Audited

2015 2015

EXPENSES - SUMMARY

Airport Management $20,537,025 $19,521,337

FBO Management 3,216,104 3,301,316

FBO Cost of Sales 6,123,648 4,495,666

Authority 4,206,420 4,001,260

TOTAL EXPENSES $34,083,197 $31,319,579

EXPENSES BY CATEGORY

Personnel Services $9,513,907 $9,250,878

Employee Benefits 4,698,022 4,268,550

Utilities & Communications 2,664,808 2,403,840

Purchased Services

Accounting & Auditing $51,000 $105,455

Insurance 720,701 756,671

Legal 50,000 120,370

Public Safety 217,435 221,462

Albany County Sheriffs 2,367,560 2,085,076

Janitorial 446,643 425,109

Public Communications 816,087 713,177

Special Studies & GIS Services 57,500 93,609

Professional Services 867,660 747,282

Total Purchased Services $5,594,587 $5,268,211

Materials & Supplies

Airfield $904,456 $476,500

FBO - Cost of Sales 6,123,648 4,495,666

Buildings 1,489,832 1,732,721

Grounds 680,530 775,983

Vehicles & Equipment 1,108,748 1,203,983

Total Material & Supplies $10,307,215 $8,684,853

Office $361,340 $321,904

Administration 759,377 731,555

Noncapital Equipment & Facilities 183,942 389,788

TOTAL EXPENSES $34,083,197 $31,319,579

DEPARTMENT SUMMARY (Direct & Indirect)

Direct Cost Centers

Airfield $3,052,820 $2,568,706

Terminal 5,128,717 4,826,781

Loading Bridges 268,368 327,049

Landside:

Parking 3,503,791 3,362,963

Landside Development 1,134,601 1,145,793

FBO Commercial 3,074,622 2,719,176

FBO GA & Facilities 5,584,096 4,428,023

Total Direct Cost Centers $21,747,015 $19,378,491

Indirect Cost Centers

ARFF $1,677,964 $1,759,317

Operations 866,632 882,183

Security 2,704,942 2,402,736

Vehicle/Equipment 1,361,879 1,411,109

Airport Management Administration 837,311 834,700

FBO Administration 681,034 649,783

Airport Authority Administration 4,206,420 4,001,260

Total Indirect Cost Centers $12,336,182 $11,941,088

TOTAL EXPENSES $34,083,197 $31,319,579

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Table 2-1




EXPENSES

(Page 1 of 4)

Budget Audited

2015 2015

AIRFIELD


Employee Benefits 550,697 517,269

Utilities & Communications 134,883 120,057

Purchased Services 200,682 210,999

Materials & Supplies 982,600 559,391

Office 7,199 3,156


Noncapital Equipment & Facilities 0 75,651

$3,052,820 $2,568,706

TERMINAL



Utilities & Communications 1,475,431 1,373,935

Purchased Services 1,097,051 984,040


Office 33,760 39,620

Administration 2,500 0


$5,128,717 $4,826,781

LOADING BRIDGES

Personnel Services $75,329 $65,043



Purchased Services 0 0


Office 0 0

Administration 0 0

Noncapital Equipment & Facilities 12,642 0

$268,368 $327,049

DRAFT

Table 2-1




EXPENSES

(Page 2 of 4)

Budget Audited

2015 2015

PARKING






Office 74,784 43,793



$3,503,791 $3,362,963

LANDSIDE




Office 2,150 0


Noncapital Equipment & Facilities 0 0

$1,134,601 $1,145,793

ARFF






Office 8,183 6,528



$1,677,964 $1,759,317

DRAFT




EXPENSES

(Page 3 of 4)

Budget Audited

2015 2015

OPERATIONS




Purchased Services 0 0

Materials & Supplies 0 0

Office 9,286 8,276



$866,632 $882,183

SECURITY




Purchased Services 2,367,560 2,085,076


Office 4,310 6,020

Administration 0 0


$2,704,942 $2,402,736

VEHICLE/EQUIPMENT






Office 8,246 1,308



$1,361,879 $1,411,109

FBO COMMERCIAL





Materials & Supplies 2,327,013 2,034,820

Office 0 0



$3,074,622 $2,719,176

FBO GENERAL AVIATION AND FACILITIES





Materials & Supplies 4,342,533 3,175,878

Office 1,500 745



$5,584,096 $4,428,023

DRAFT

Table 2-1




EXPENSES

(Page 4 of 4)

Budget Audited

2015 2015

FBO ADMINISTRATION






Office 41,332 34,018



$681,034 $649,783

AIRPORT MANAGEMENT ADMINISTRATION



Utilities & Communications 410 314



Office 48,235 42,234



$837,311 $834,700

AIRPORT AUTHORITY ADMINISTRATION


Employee Benefits 1,152,483 983,197




Office 122,355 136,206



$4,206,420 $4,001,260

TOTAL EXPENSES $34,083,197 $31,319,579DRAFT

Table 2-2




ALLOCATION OF INDIRECT COST CENTERS

TO DIRECT COST CENTERS

(Page 1 of 3)

Budget Audited

2015 2015

ARFF

Airfield $251,695 $263,898

Terminal 805,423 844,472


Landside 402,711 422,236

Parking 100,678 105,559

FBO Commercial 50,339 52,780

FBO GA & Facilities 50,339 52,780

Total Allocated $1,677,964 $1,759,317

OPERATIONS

Airfield $346,653 $352,873

Terminal 259,989 264,655


Landside 86,663 88,218

Parking 43,332 44,109



Total Allocated $866,632 $882,183

SECURITY

Airfield $405,741 $360,410

Terminal 1,352,471 1,201,368


Landside 270,494 240,274

Parking 540,988 480,547



Total Allocated $2,704,942 $2,402,736

VEHICLE/EQUIPMENT

Airfield $476,658 $493,888

Terminal 68,094 70,555

Loading Bridges 0 0

Landside 503,895 522,110

Parking 204,282 211,666



Total Allocated $1,361,879 $1,411,109DRAFT

Table 2-2






(Page 2 of 3)

Budget Audited

2015 2015

Subtotal Allocation before Admin Departments

Airfield $4,533,567 $4,039,775

Terminal 7,614,694 7,207,832


Landside 2,398,365 2,418,631

Parking 4,393,070 4,204,845

FBO Commercial 3,263,436 2,910,647


Total Allocated $28,358,432 $25,833,836

Airport Management Administration

Airfield $170,724 $158,027

Terminal 286,752 281,954


Landside 90,317 94,611

Parking 165,433 164,484




FBO Administration

Airfield $0 $0

Terminal 0 0

Loading Bridges 0 0

Landside 0 0

Parking 0 0




Airport Authority Administration

Airfield $833,078 $735,957

Terminal 1,399,260 1,313,107


Landside 440,718 440,621

Parking 807,261 766,029



Total Allocated $4,206,420 $4,001,260DRAFT

Table 2-2






(Page 3 of 3)

Budget Audited

2015 2015

TOTAL INDIRECT ALLOCATIONS

Airfield $2,484,548 $2,365,053

Terminal 4,171,989 3,976,111


Landside 1,794,799 1,808,070

Parking 1,861,974 1,772,395



Total Allocated $12,336,182 $11,941,088

TOTAL DIRECT & INDIRECT

EXPENSES BY COST CENTER

Airfield $5,537,369 $4,933,759

Terminal 9,300,706 8,802,892


Landside 2,929,400 2,953,863

Parking 5,365,765 5,135,358

FBO Commercial 3,906,229 3,590,883


Total Allocated $34,083,197 $31,319,579

DRAFT

Table 3Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationDEBT SERVICE SUMMARY

Budget Audited2015 2015

Airport Revenue Bonds: 1999 EFC Revenue Bonds, net of interest subsidy 429,770 433,164 2003 A Revenue Bonds 471,517 471,064 2006 A & B Revenue Bonds 1,113,061 1,111,804 2006 C Revenue Bonds 406,013 405,738 2010 A Refunding Bonds 9,724,301 9,715,389 2010 B Refunding Bonds 927,555 925,859 Less: PFC Other Deposits 0 0 Less: PFC's Applied to 2008A Revenue Bonds (3,951,982) (3,293,320)

TOTAL DEBT SERVICE $9,120,235 $9,769,698

Allocation of Total Debt Service to Cost CentersAirfield $1,091,316 $1,177,567FBO $275,069 $274,758ARFF 43,285 43,244Terminal 1,737,313 2,206,382Loading Bridges 51,443 60,434Landside 5,921,809 6,007,314

TOTAL ALLOCATION $9,120,235 $9,769,698

DRAFT

Table 3-1Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationAIRPORT REVENUE BONDS DEBT SERVICE(page 1 of 2)


2010A Revenue Refunding Bonds Debt Service $9,634,081 $9,625,169

Amortization of Bond Issue Costs $90,220 $90,220

TOTAL 2010A REVENUE BONDS DEBT SERVICE $9,724,301 $9,715,389

Allocation of 2010A Refunding Bonds Debt Service to Cost CentersAirfield $795,944 $796,662Terminal 4,449,456 4,439,933Loading Bridges 130,483 126,300Landside 4,348,419 4,352,494

Total $9,724,301 $9,715,389

2010B Revenue Refunding Bonds Debt Service $925,710 $924,014

Amortization of Bond Issue Costs $1,845 $1,845

TOTAL 2010B REVENUE BONDS DEBT SERVICE $927,555 $925,859

Allocation of 2010B Refunding Bonds Debt Service to Cost CentersAirfield $0 $0Terminal 0 0Loading Bridges 0 0Landside 927,555 925,859

Total $927,555 $925,859

DRAFT

Table 3-2Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationAIRPORT REVENUE BONDS DEBT SERVICE(page 2 of 2)


2003 A Revenue Bonds Debt Service $464,844 $464,391

Amortization of Bond Issue Costs 6,673 6,673

TOTAL 2003 A REVENUE BONDS DEBT SERVICE $471,517 $471,064

Allocation of 2003 A Revenue Bonds Debt Service to Cost CentersAirfield $88,315 $88,230ARFF 43,285 43,244Terminal 78,979 78,903Loading Bridges 0 0Landside 195,114 194,926Parking 65,824 65,761

Total $471,517 $471,064

2006 A & B Revenue Bonds Debt Service $1,104,963 $1,103,706


TOTAL 2006 REVENUE BONDS DEBT SERVICE $1,113,061 $1,111,804

Allocation of 2006 Revenue Bonds Debt Service to Cost CentersAirfield $272,477 $272,169FBO 275,069 274,758Parking 212,386 212,146Landside and other 271,683 271,376Terminal 81,446 81,354

Total $1,113,061 $1,111,804

2006 C Revenue Bonds Debt Service $402,863 $402,588


TOTAL 2006 REVENUE BONDS DEBT SERVICE $406,013 $405,738

Allocation of 2006 Revenue Bonds Debt Service to Cost CentersLandside and other 406,013 405,738

Total $406,013 $405,738

DRAFT

Table 3-2Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationNYS ENVIRONMENTAL FACILITIES CORPORATION (EFC) AIRPORT REVENUE BONDS DEBT SERVICE


1999 A EFC Revenue Bonds Debt Service $449,579 $452,972

Amortization of Bond Issue Costs 0 0

Less: Interest Subsidy Earnings (19,808) (19,808)

TOTAL 1999 A EFC REVENUE BONDS DEBT SERVICE $429,770 $433,164

Allocation of EFC Revenue Bonds Debt Service to Cost CentersAirfield $429,770 $433,164Control Tower 0 0Terminal 0 0Loading Bridges 0 0Landside 0 0

Total $429,770 $433,164

DRAFT

Table 3-3Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationCALCULATION OF PFC REVENUES


ENPLANEMENTS 1,220,872 1,297,749

PFC's charged $4.50 $4.50LESS: Carrier Compensation (0.11) (0.11)

Net PFC Revenue $4.39 $4.39

% of PFCs collected on Enplanements 88.6% 86.7%

PFC Revenue $4,750,436 $4,939,385

LESS: Applied Pay-As-You-Go 0 0

PFC's Available for Debt Service $4,750,436 $4,939,385

PFC DEBT SERVICE FUND ACTIVITY

BEGINNING BALANCE $5,271,587 $5,271,587

PLUS: Deposit of PFC's 4,750,436 4,939,385PLUS: Interest Earnings on PFC's 12,528 11,688

LESS: Applied Towards 2010A Debt Service (3,951,982) (3,293,320)

ENDING BALANCE $6,082,568 $6,929,340

PFC's APPLIED TO DEBT SERVICE $3,951,982 $3,293,320

Allocation of PFC's to Cost CentersAirfield $495,190 $412,658Terminal 2,872,569 2,393,809Loading Bridges 79,040 65,866Landside 505,184 420,987

Total $3,951,982 $3,293,320DRAFT

Table 4



2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationCALCULATION OF CAPITAL EXPENDITURES FUND CONTRIBUTION

Budget Audited

2015 2015

Total Revenues before Revenue Sharing $46,066,144 $46,668,645

Less:

Airline Landing Fees 4,438,751 4,605,459

Airline Landing Fee Surcharge 0 0

Airline Apron Fee 857,711 824,091

Airline Space Rental 4,545,502 4,946,092

FBO Commercial 2,346,740 1,914,513

Loading Bridge Rentals 478,736 623,867

Nonoperating Revenues 673,399 681,139NON-AIRLINE REVENUES $32,725,303 $33,073,484

2006 Non-Airline Revenues 26,880,473 26,880,473

% of Current Year over 2006 /2016 Non-Airline Revenues 21.7% 23.0%

Total Capital Expenditure % times $1,500,000 thru 2015, $3,000,000 thru $1,826,157 $1,845,586

DRAFT

Table 5Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationLANDING FEE RATES


Airfield: Direct O&M Expenses $3,052,820 $2,568,706

Indirect O&M Expenses 2,484,548 2,365,053 O&M Reserve Requirement 6,859 6,859FBO: Commercial Direct O&M Expenses 1,098,741 1,239,599 Commercial Indirect O&M Expenses 831,607 871,707 Commercial O&M Reserve Requirement 2,391 2,391Airfield Capital Charges:

2010A Revenue Bond Debt Service 795,944 796,662LESS: Applicable Approved PFC Revenues (495,190) (412,658)EFC Revenue Bond Debt Service 1999 - Net 429,770 433,1642003A Revenue Bond Debt Service 88,315 88,2302006 A & B Revenue Bond Debt Service 272,477 272,169Airfield G.O. Debt Service 0 0Airfield Amortization Requirements 0 0

FBO Commercial Capital Charges 0 0Airfield Capital Charge Coverage 0 0FBO Commercial Capital Charge Coverage 0 0Airfield Debt Service Reserve Requirement 0 0FBO Commercial Debt Service Reserve Requirement 0 0Airfield Extraordinary Coverage Protection 0 0Total LANDING FEE REQUIREMENT $8,568,283 $8,231,882

Total Landed Weight (000-lbs) 1,511,976 1,574,363

COMPENSATORY LANDING FEE RATE $5.67 $5.23

LESS: Interest Earning Credit $12,999 $20,739LESS: Glycol disposal Fee $346,035 $280,147LESS: Aircraft Aprons Fee Credit (Per Table 6) 856,828 823,188LESS: FBO Commercial Revenues Credit

Into Plane 708,007 590,020Fuel Farm Throughput Fee 526,821 500,559

Avgas Fuel Sales Commercial 852,566 627,347 LESS: Cost of Sales, Avgas (786,680) (561,907)Deicing - Commercial 1,259,580 927,212 LESS: Cost of Sales, Deicing (793,201) (688,485) General Aviation Landing Fees 305,327 268,604General Aviation Parking Fees 274,319 251,163

Sub Total 2,346,740 1,914,513

LESS: Airfield Tenant Maintenance 55,000 52,156LESS: Non-signatory Airline Landing Fee Credit 314,905 119,906NET LANDING FEE REQUIREMENT $4,635,776 $5,021,233

Signatory Commercial & Cargo Carrier Landed Wt (000-lbs) 1,434,982 1,545,848

Signatory Landing Fee Rate $3.23 $3.25

SIGNATORY AIRLINE LANDING FEE REVENUE $4,174,546 $4,533,003NON-SIGNATORY PASSENGER LANDING FEE REVENUE 264,206 72,456TOTAL AIRLINE LANDING FEE REVENUE $4,438,751 $4,605,459

SIGNATORY CARGO LANDING FEE REVENUE $460,446 $491,004

NON-SIGNATORY CARGO LANDING FEE REVENUE 50,700 47,450TOTAL CARGO LANDING FEE REVENUE $511,146 $538,454

DRAFT

Table 5-1

Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationALLOCATION OF LANDING FEE PORTION OF SETTLEMENT

Landing Fee Rate as calculated 3.25$

Landing Fee Rate Billed 3.23$

LANDING FEE RATE SETTLEMENT 0.02$

ALLOCATION TO SIGNATORY AIRLINES Landed TotalWeights 000's Allocated

COMMERCIAL AIRLINES:American Airlines 114,046 2,281$ American - Air Wisconsin 78,396 1,568 American - Mesa 588 12 American - Piedmont 12,780 256 American - Republic 102,047 2,041 Cape Air 21,030 421 Delta 182,901 3,658 Delta - Compass 1,825 37 Delta - Express Jet 30,950 619 Delta - Go Jet 201 4 Delta - Endeavor 32,468 649 Delta - Shuttle America 6,601 132 jetBlue 6,257 125 Southwest 563,978 11,280 United 107,842 2,157 United - Commutair 73,147 1,463 United - Express Jet 16,833 337 United - Go Jet 16,214 324 United - Mesa 26,666 533

TOTAL COMMERCIAL AIRLINES: 1,394,770 27,895$

CARGO:FedEx 50,886 1,018$ United Parcel Service 100,192 2,004

TOTAL CARGO: 151,078 3,022$

TOTAL LANDING FEE SETTLEMENT 1,545,848 30,917$ DRAFT

Table 6Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationAIRCRAFT APRON FEE


TOTAL AIRFIELD REQUIREMENT $8,568,283 $8,231,882

10% of AIRFIELD REQUIREMENT $856,828 $823,188

TOTAL APRON SQUARE FEET 510,026 542,750

AIRCRAFT APRON FEE (PER SQ FT) $1.68 $1.52

DRAFT

Table 6-1

Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationALLOCATION OF APRON FEE PORTION OF SETTLEMENT

Total Airfield Requirement 8,231,882$

Aprons Fees (10% of Airfield Requirement) 823,188$

Total Aprons Fees Billed 861,424$

APRONS FEES SETTLEMENT (38,236)$

ALLOCATION TO SIGNATORY AIRLINES TotalSquare Footage Allocated

American 128,070 (9,550)$ Cape Air 12,807 (955) Delta 106,326 (7,929) jetBlue

Dec - 32,724 square feetYearly Average 2,727 (203)

Southwest 126,018 (9,397) United 136,805 (10,201)

Charter/Authority Use - -$

TOTAL APRONS FEE SETTLEMENT 512,753 (38,236)$

DRAFT

Table 7Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationTERMINAL RENTAL RATE CALCULATIONS


Terminal Direct O&M Expenses $5,128,717 $4,826,781Terminal Indirect O&M Expenses 4,171,989 3,976,111Terminal O&M Reserve Requirement 11,521 11,521Terminal Capital Charges:

2010A Revenue Bond Debt Service 4,449,456 4,439,933LESS: Applicable PFC Revenues (2,872,569) (2,393,809)2003A Revenue Bond Debt Service 78,979 78,9032006 A & B Revenue Bond Debt Service 81,446 81,354Terminal G.O. Bond Debt Service 0 0Terminal Amortization Requirements 0 0

Terminal Capital Charge Coverage 0 0Terminal Debt Service Reserve Requirement 0 0TERMINAL Extraordinary Coverage Protection 0 0TOTAL REQUIREMENT $11,049,540 $11,020,795

Rentable Terminal Space 134,943 135,328

COMPENSATORY TERMINAL RENTAL RATE $81.88 $81.44

LESS: Non-airline Terminal Space Rentals - Flat Rate 56,958 51,616LESS: Non-airline Terminal Space Rentals - Calculated Rate 145,671 149,100LESS: TSA Space Rental 421,234 421,234LESS: TSA (LEO) Reimbursement 292,000 292,000LESS: Utility Reimbursements 26,000 27,929LESS: Tenant Maintenance Reimbursements 16,000 22,676NET TERMINAL REQUIREMENT $10,091,677 $10,056,240

Rentable Terminal Space 134,943 135,328

SIGNATORY TERMINAL RENTAL RATE $74.78 $74.31

Signatory Airline Terminal Rental Space 43,001 48,776SIGNATORY AIRLINE RENTAL REVENUE $3,215,615 $3,624,563NON-SIGNATORY AIRLINE RENTAL REVENUE - - TOTAL AIRLINE RENTAL REVENUE 3,215,615 3,624,563

Baggage Claim Room Square Footage 17,784 17,784BAGGAGE CLAIM ROOM REVENUE $1,329,888 $1,321,529

NONSIGNATORY AIRLINE RENTAL REVENUE $0 $0

AIRLINE RENTAL REVENUE $4,545,502 $4,946,092DRAFT

Table 7-1

Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationALLOCATION OF TERMINAL RENTAL PORTION OF SETTLEMENT

TERMINAL RENTAL AREAS:Terminal Rental Rate as calculated 74.31$

Terminal Rental Rate Billed 74.78$

TERMINAL RENTAL RATE SETTLEMENT (0.47)$

ALLOCATION TO SIGNATORY AIRLINES TotalSquare Footage Allocated

American 12,765 (6,000)$ Cape Air 1,381 (649) Delta 8,507 (3,998) jetBlue

Dec - 4,898 square feetYearly Average 408 (192)

SouthwestJan - 11,292 square feetFeb - 11,609 square feetMar & Apr - 12,032 square feetMay -Dec - 13,700 square feetYearly Average 13,047 (6,132)

United 12,668 (5,954) TOTAL TERMINAL SETTLEMENT 48,776 (22,925)$

BAGGAGE CLAIM AREA - JOINT USE:Terminal Rental Rate 74.31$

Terminal Rental Rate Billed - Baggage Claim Room 74.78$

TERMINAL RENTAL RATE SETTLEMENT - Baggage Claim (0.47)$

Baggage Claim Square Footage 17,784Adjustment of Baggage Claim Area to 2015 Rate ($8,358)

ALLOCATION OF COMMON USE SPACE: Enplanements 80 % Pro-Rated 20 % Fixed TotalSignatory Airlines 2015 Allocation Portion AllocationAmerican 273,292 (1,425)$ (279)$ (1,704)$ Cape Air 16,119 (84) (279) (363) Delta 225,194 (1,174) (279) (1,453) jetBlue 5,492 (29) (279) (307) Southwest 557,183 (2,906) (279) (3,184) United Airlines 204,880 (1,069) (279) (1,347) TOTAL SIGNATORY ENPLANEMENTS 1,282,160 (6,687)$ (1,672)$ (8,358)$

TOTAL TERMINAL PORTION OF SETTLEMENT: TotalAmerican (7,703)$ Cape Air (1,012) Delta (5,451) jetBlue (499) Southwest (9,317) United Airlines (7,301) TOTAL TERMINAL PORTION OF SETTLEMENT: (31,283)$

DRAFT

Table 8

Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationALLOCATION OF LOADING BRIDGE PORTION OF SETTLEMENT

Budget Actual2015 2015

LOADING BRIDGE RENTALSTenant Loading Bridge Debt Service 130,483$ 126,300$ LESS: Applicable PFC Revenues (79,040) (65,866) Direct Loading Bridge Expenses 268,368 327,049 Indirect Loading Bridge Expenses 231,957 235,765 Loading Bridge Expense Reserve 620 620 TOTAL LOADING BRIDGE REQUIREMENT 552,388$ 623,867$

Total Loading Bridge Rentals Billed 518,632$

LOADING BRIDGE SETTLEMENT 105,235$

ALLOCATION TO SIGNATORY AIRLINES Total# of Bridges Allocated

American 3 22,417$ Delta 3 22,417 jetBlue 0.08 623 Southwest 4 29,889 United 4 29,889

TOTAL SIGNATORY LOADING BRIDGES 14.08 105,235$

Charter/Authority Use - -$

TOTAL LOADING BRIDGE SETTLEMENT 14.08 105,235$

DRAFT

Table 9



2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationCALCULATION AND ALLOCATION OF FUNDS REMAINING

Budget Audited

2015 2015

TOTAL REVENUES BEFORE REV SHARING $46,066,144 $46,668,645

TOTAL EXPENSES 34,083,197 31,319,579

NET REVENUES $11,982,947 $15,349,066

LESS:

Capital Charges:

Less: Applicable Approved PFC Revenues (3,951,982) (3,293,320)

1999 EFC Revenue Bond Debt Service 449,579 452,972

Less: NYS EFC Interest Subsidy (19,808) (19,808)2003 A Revenue Bond Debt Service 471,517 471,064

2006 A & B Revenue Bond Debt Service 1,113,061 1,111,804

2006 C Revenue Bond Debt Service 406,013 405,738

2010 A Revenue Bonds 9,724,301 9,715,389

2010 B Revenue Bonds 927,555 925,859

Capital Charge Coverage 0 0

Debt Service Reserve Requirement 0 0

Capital Expenditures (Per Table 4) 1,826,157 1,845,586

Operating & Maintenance Reserve 42,221 42,221

Renewal and Replacement Reserve 0 0

Subtotal 10,988,613 11,657,505

FUNDS REMAINING $994,334 $3,691,561

50% 50%

Authority Share - 50% 497,167 1,845,780

Less Cost of Air Service Incentive Programs 0 (50,732)

Authority Share Net of Air Service Incentive 497,167 1,795,048

50% 50%

Airline Share - 50% 497,167 1,845,780

994,334 3,691,561

ALLOCATION OF AIRLINE SHARE

Terminal (70%) 348,017 1,292,046

Airfield (30%) 149,150 553,734

TOTAL AIRLINE SHARE $497,167 $1,845,780

DRAFT

Table 9-1

Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationALLOCATION OF AIRFIELD PORTION OF REVENUE SHARING

AIRFIELD PORTION OF REVENUE SHARING (553,734)$

ALLOCATION TO SIGNATORY AIRLINES Landed TotalWeights Allocated

COMMERCIAL AIRLINES:American 114,046 (55,051) Cape Air 21,030 (10,151)$ Delta 182,901 (88,288) jetBlue 6,257 (3,020) Southwest 563,978 (272,239) United 107,842 (52,057)

TOTAL COMMERCIAL AIRLINES: 996,054 (480,807)$

CARGO:FedEx 50,886 (24,563)$ United Parcel Service 100,192 (48,364)

TOTAL CARGO: 151,078 (72,927)$

TOTAL LANDING FEE SETTLEMENT 1,147,132 (553,734)$

DRAFT

Table 9-2

Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationALLOCATION OF TERMINAL PORTION OF REVENUE SHARING

TERMINAL PORTION OF REVENUE SHARING (1,292,046)$

ALLOCATION OF DIRECT PORTION: TotalSignatory Airlines Square Footage AllocatedAmerican 12,765 (247,790)$ Cape Air 1,381 (26,808) Delta 8,507 (165,135)jetBlue 408 (7,923)Southwest 13,047 (253,266)United 12,668 (245,907)

48,776 (946,829)$

JOINT USE SPACE: 17,784 (345,217)$

TOTAL 66,560 (1,292,046)$

ALLOCATION OF JOINT USE SPACE: 2015 80 % Pro-Rated 20 % Fixed TotalSignatory Airlines Enplanements Allocation Portion AllocationAmerican 273,292 (58,866)$ (11,507)$ (70,374)$ Cape Air 16,119 (3,472) (11,507) (14,979) Delta 225,194 (48,506) (11,507) (60,013) jetBlue 5,492 (1,183) (11,507) (12,690) Southwest 557,183 (120,016) (11,507) (131,523) United Airlines 204,880 (44,131) (11,507) (55,638)

TOTAL SIGNATORY ENPLANEMENTS 1,282,160 (276,174)$ (69,043)$ (345,217)$

TOTAL TERMINAL PORTION OF REVENUE SHARING TotalAmerican (318,164)$ Cape Air (41,786.76) Delta (225,149) jetBlue (20,613) Southwest (384,789) United Airlines (301,545)

TOTAL TERMINAL PORTION OF REVENUE SHARING (1,292,046)$ DRAFT

Table 10Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationAIRLINE COST PER ENPLANEMENT

Budget Audited(Includes Settlement and Revenue Sharing Calculation) 2015 2015

AIRPORT OPERATIONS:Airline Landing Fees $4,438,751 $4,605,459Airline Space Rental 4,545,502 4,946,092Loading Bridge Rentals 478,736 623,867Airline Apron Fee 856,828 823,188Airline Share of Revenue Sharing (497,167) (1,845,780)Total Airport Operations 9,822,651 9,152,826

FBO OPERATIONS:Avgas Fuel Sales Commercial 852,566 627,347Deicing 1,259,580 927,212Into Plane & Fuel Farm 1,234,828 1,090,579Total FBO Operations 3,346,975 2,645,138

TOTAL AIRLINES FEES & CHARGES 13,169,626 11,797,964

ENPLANEMENTS 1,220,872 1,297,749

COST PER ENPLANEMENT 8.05 7.05FBO OPERATIONS COST PER ENPLANEMENT 2.04 1.55

TOTAL COMBINED COST PER ENPLANEMENT 10.09 8.61

DRAFT

Table 11

Albany County Airport AuthorityAlbany International Airport2015 Airline Rates & Charges Settlement and Revenue Sharing CalculationALLOCATION SETTLEMENT AND REVENUE SHARING

TOTAL SETTLEMENT AND REVENUE SHARING (1,779,147)$

SETTLEMENTS REVENUE SHARING TOTALLoading

Landing Fee Terminal Rent Aprons Fees Bridges Airfield TerminalAmerican Airlines 2,281$ (7,703)$ (9,550)$ 22,417$ (55,051)$ (318,164)$ (365,771)$ American - Air Wisconsin 1,568 1,568 American - Mesa 12 12 American - Piedmont 256 256 American - Republic 2,041 2,041 Cape Air 421 (1,012) (955) (10,151) (41,787) (53,484) Delta 3,658 (5,451) (7,929) 22,417 (88,288) (225,149) (300,742) Delta - Compass 37 37 Delta - Express Jet 619 619 Delta - Go Jet 4 4 Delta - Endeavor 649 649 Delta - Shuttle America 132 132 FedEx 1,018 (24,563) (23,546) jetBlue 125 (499) (203) 623 (3,020) (20,613) (23,588) Southwest 11,280 (9,317) (9,397) 29,889 (272,239) (384,789) (634,572) United 2,157 (7,301) (10,201) 29,889 (52,057) (301,545) (339,058) United - Commutair 1,463 1,463 United - Express Jet 337 337 United - Go Jet 324 324 United - Mesa 533 533 United Parcel Service 2,004 (48,364) (46,360)

TOTAL SIGNATORY AIRLINE DISTRIBUTION 30,917$ (31,283)$ (38,236)$ 105,235$ (553,734)$ (1,292,046)$ (1,779,147)$

Airlines 27,895 (31,283) (38,236) 105,235 (480,807) (1,292,046) (1,709,242) Cargo 3,022 - - - (72,927) - (69,906)

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AGENDA ITEM NO. 2.3

Annual Investment Report which includes a

copy of the Cash Management and Investment Policy (the Policy) and

explanation of the Policy and draft auditor report.











BACKUP MATERIALS:






ALBANY COUNTY AIRPORT AUTHORITY ANNUAL INVESTMENT REPORT

FOR THE FISCAL YEAR ENDING DECEMBER 31, 2015

PREPARED IN ACCORDANCE WITH SECTION 2925 OF THE PUBLIC AUTHORITIES LAW

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Introduction

In accordance with Sections 2925(6) and 2925(7) of the Public Authorities Law and

as required by the Albany County Airport Authority (the Authority) Cash

Management and Investment Policy (the "guidelines"), the Authority shall annually

prepare and approve an Investment Report.

The organization of this report is structured to conform with the prescribed format

specified in the section on "Reporting to Oversight Agencies" of the Guidelines.

Section I of this Annual Investment Report contains the Authority’s Investment

Guidelines that were adopted by the Authority on December 7, 2009 and most

recently approved on March 23, 2015. Section II presents the amendments to the

guidelines since the last investment report. Section III contains a concise

explanation of the Guidelines and amendments. Section IV presents the annual

independent audit of investments. Section V summarizes the recorded results of

the Corporation's investment activity for the year ended December 31, 2015.

Section VI presents a list of fees, commissions or other charges paid to firms

rendering investment associated services. Section VII presents a list of

investments at December 31, 2015.

After the Authority has reviewed and accepted this report, copies of the report will

be submitted to the chief executive officer and chief fiscal officer of the County of

Albany and the Office of the State Comptroller.

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Section I


CASH MANAGEMENT AND INVESTMENT POLICY

Adopted December 7, 2009

Reviewed and Approved:

March 25, 2010 March 21, 2011 March 19, 2012 March 18, 2013 March 26, 2014 March 23, 2015

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SECTION DESCRIPTION PAGE I. Scope………………………………………………............. 3 II. Objectives………………………………………………..… 3 III. Delegation of Authority…………………………………..... 3 IV. Prudence……………………………………………………. 3 V. Diversification……………………………………………… 4 VI. Internal Controls…………………………………………… 4 VII. Designation of Depositaries……………………………….. 4 VIII. Collateralizing of Deposits………………………………… 5 IX. Safekeeping and Collateralization…………………………. 5 X. Permitted Investments……………………………………... 5 XI. Authorized Financial Institutions and Dealers…………….. 6 XII. Purchase of Investments…………………………………… 6 XIII. Repurchase Agreements…………………………………… 7 XIV. Required Reports…………………………………… 8 APPENDIX A. Schedule of Eligible Investments………………………….. 10

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***********



I. SCOPE This cash management and investment policy applies to all moneys and other financial resources held on its own behalf or on the behalf of any entity or individual and the investment of those moneys and resources. II. OBJECTIVES The primary objectives of the Authority’s cash management and investment activities are, in priority order:

To Conform with all applicable federal, state and other legal requirements (legal); To Adequately safeguard principal (safety);

To provide sufficient liquidity to meet all operating requirements (liquidity); and To obtain a reasonable rate of return (yield).

III. DELEGATION OF AUTHORITY

The governing board’s responsibility for administration of the cash management and investment program for the Authority is delegated to the Chief Financial Officer who shall establish written procedures for the operation of the cash management and investment program consistent with these guidelines. Such procedures shall include an adequate internal control structure to provide a satisfactory level of accountability based on a data base or records incorporating description and amount of receipts, disbursements, and investments, transaction dates, and other relevant information and regulate the activities of subordinate employees. IV. PRUDENCE All participants in the investment process shall seek to act responsibly as custodians of the public trust and shall avoid any transaction that might impair public confidence in the Authority to govern effectively.

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Cash management and investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the safety of the principal as well as the probable income to be derived. All participants involved in the cash management and investment process shall refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. V. DIVERSIFICATION REQUIREMENTS

In order to safeguard principal from imprudent risks, it is the policy of Authority, where possible, to diversify a portfolio among the investment instruments which it may legally and prudently hold and also among investment firms with which it transacts business. However, since the Authority is legally limited in the type of securities it may invest in, the opportunity to diversify among investments is very limited. The terms of each investment will be consistent with the Authority’s cash liquidity requirements. The term of Repurchase Agreements will be for periods no longer than ninety days. VI. INTERNAL CONTROLS It is the policy of the Authority for all moneys collected by any officer or employee of the Authority to transfer those funds to the Chief Financial Officer within one day for deposit, or within the time period specified in law, whichever is shorter. The Chief Financial Officer is responsible for establishing and maintaining an internal control structure to provide reasonable, but not absolute, assurance that deposits and investments are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with the Authority’s authorization and recorded properly, and is managed in compliance with applicable laws and regulations. VII. DESIGNATION OF DEPOSITARIES Any bank or trust company with a full service office in the County of Albany is authorized for deposit of monies.

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VIII. COLLATERALIZING OF DEPOSITS In accordance with the provisions of Title 32 of the Public Authorities Law, Section 2788, all deposits of the Authority including certificate of deposits and special time deposits, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act shall be secured by obligations with a market value equal at all times to the amount of the deposit. Obligations eligible for use as collateralization include those issued by the United States or issued by the State of New York or any municipality therein rated in one of the three highest rating categories by at least one nationally recognized statistical rating organization. IX. SAFEKEEPING AND COLLATERALIZATION Eligible securities used for collateralizing deposits shall be held by a third party bank or trust company subject to security and custodial agreements. The security agreement shall provide that eligible securities are being pledged to secure Authority deposits together with agreed upon interest, if any, and any costs or expenses arising out of the collection of such deposits upon default. It shall also provide the conditions under which the securities may be sold, presented for payment, substituted or released and the events which will enable the Authority to exercise its right against the pledged securities. In the event the securities are not registered or inscribed in the name of the Authority, such securities shall be delivered in a form suitable for transfer or with an assignment in blank to the Authority or its custodial bank. The custodial agreement shall provide that securities held by the bank or trust company, or agent of and custodian for, the Authority will be kept separate and apart from the general assets of the custodial bank or trust company and will not in any circumstances, be commingled with or become part of the backing for any other deposit or other liabilities. The agreement shall also describe that the custodian shall confirm the receipt, substitution or release of the securities. The agreement shall provide for the frequency of revaluation of eligible securities and for the substitution of securities when a change in the rating of a security may cause ineligibility. Such agreement shall include all provisions necessary to provide the Authority a perfected interest in the securities. X. PERMITTED INVESTMENTS Title 32 of the Public Authorities Law, Section 2788 authorized the Authority to invest in those obligations specified pursuant to the provisions of Section 98-a of the State Finance Law. In accordance therewith, the Authority authorized the Chief Financial Officer to invest moneys not required for immediate expenditure for terms not to exceed its projected cash flow needs in the investments designated in Appendix A to this policy.

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All investment obligations shall be payable or redeemable at the option of the Authority within such times as the proceeds will be needed to meet expenditures for purposes for which the moneys were provided and, in the case of obligations purchased with the proceeds of bond or notes, shall be payable or redeemable at the option of the Authority within two years of the date of purchase. XI. AUTHORIZED FINANCIAL INSTITUTIONS AND DEALERS The Authority shall maintain a list of financial institutions and dealers approved for investment purposes and establish appropriate limits to the amount of investments which can be made with each financial institution or dealer. All financial institutions with which the Authority conducts business must be business worthy. Banks shall provide their most recent Consolidated Report of Condition (Call Report) at the request of the Authority. Security dealers not affiliated with a bank shall be required to be classified as reporting dealers affiliated with the New York Federal Reserve Bank, as primary dealers. The Chief Financial Officer is responsible for evaluating the financial position and maintaining a listing of proposed depositaries, trading partners and custodians. Such list shall be evaluated at least annually. XII. PURCHASE OF INVESTMENTS The Chief Financial Officer is authorized to contract for the purchase of investments: 1. Directly, including by use of a repurchase agreement, from an authorized trading partner. 2. By utilizing an ongoing investment program with an authorized trading partner. All purchased obligations, unless registered or inscribed in the name of the Authority shall be purchased through, delivered to and held in the custody of a bank or trust company. Such obligations shall be purchased, sold or presented for redemption or payment by such bank or trust company only in accordance with prior written authorization from the officer authorized to make the investment. All such transactions shall be confirmed in writing to the Authority by the bank or trust. However, written contracts are not practical, nor is it a regular business practice to enter such contracts for permitted investments other than Repurchase Agreements. Any obligation held in the custody of a bank or trust company shall be held pursuant to a written custodial agreement. The custodial agreement shall provide that securities held by the bank or trust company, as agent of and custodian for, the Authority will be kept separate and apart from the general assets of the custodial bank or trust company and will not, in any circumstances, be commingled with or become part of the backing for any other deposits or other liabilities. The agreement shall describe how the custodian shall confirm the

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receipt and release of the securities. Such agreement shall include all provisions necessary to provide the local government a perfected interest in the securities. XIII. REPURCHASE AGREEMENTS Repurchase agreements are authorized subject to the following restrictions:

1. All repurchase agreements must be entered into subject to a Master Repurchase Agreement;

2. Repurchase Agreements shall be for no more than 90 days and agreements which are “open” (continuing in nature) shall not be made;

3. Trading partners are limited to banks or trust companies authorized to do business in the State of New York and primary reporting dealers;

4. Obligations shall be limited to obligations of the United States and obligations of agencies of the United States where principal and interest are guaranteed by the United States;

5. The Authority or its custodian must take possession of the securities by physical delivery or book entry;

6. The custodian shall be a party other than the trading partner and shall be a member of the Federal Reserve Bank or maintain accounts with member banks to accomplish book-entry transfer of securities to the credit of the Authority.

The Master Repurchase Agreements must include:

1. The events of default which would permit the purchaser to liquidate the pledged collateral;

2. The relationship between parties to the agreement, which shall ordinarily be purchaser and seller:

3. Procedures which ensure that the Authority obtains a perfected security interest in the securities which are the subject of the agreement:

4. The method of computing margin maintenance requirements and providing for timely correction of margin deficiencies or excesses. Specific guidelines regarding margin maintenance shall be established, taking into consideration:

a. the type of collateral or purchased security; b. the maturity of the collateral or purchased security; c. the method by which additional margin will be maintained; and

5. Circumstances, if any, under which substitution of securities (collateral) subject to the agreement shall be permitted.

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XIV. REQUIRED REPORTS Internal Management Reporting In accordance with Section 2925(5) of the Public Authorities, the Chief Financial Officer shall cause to be prepared and filed with the Authority’s board of directors a quarterly report on any new investments, the inventory of existing investments and the selection of investment bankers, brokers, agents, dealers, or auditors. Reporting to Oversight Agencies Annually, in accordance with Sections 2925(6) and 2925(7) of the Public Authorities Law, the Authority shall prepare and approve an investment report which shall include:

1. the investment guidelines; 2. amendments to such guidelines since the last investment report; 3. an explanation of the investment guidelines and amendments; 4. the results of the annual independent audit; 5. the investment income record of the Authority; and 6. a list of the total fees, commissions or other charges paid to each investment

banker, broker, agent, dealer and adviser rendering investment associated services to the Authority since the last investment report.

Such investment report may be a part of any other annual report that the Authority is required to make. The Investment Report shall be submitted to the chief executive officer and chief fiscal officer of the County of Albany and the Office of the State Comptroller. Performance Evaluation and Audit The Authority shall annually engage its financial statement auditor to perform an audit of investments to determine whether: the Authority complies with its own investment policies; investment assets are adequately safeguarded; adequate accounts and records are maintained which accurately reflect all transactions and report on the disposition of Authority investment assets; a system of adequate internal controls is maintained; the Authority complied with the applicable laws and regulations. The audit of investments shall be designed, to the extent practical, to satisfy both the common interests of the Authority and the public officials accountable to others. A written audit report shall be prepared presenting the results of the annual independent audit of all investments and shall include:

1 a description of the scope and objectives of the audit;

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2 a statement attesting that the audit was conducted in accordance with generally accepted government auditing standards;

3 a description of any material weaknesses found in the internal controls; 4 a description of all non-compliance with the Authority’s own investment policies

as well as applicable laws and regulations; 5 a statement of positive assurance of compliance on the items tested; and 6 a statement on any other material deficiency or finding identified during the audit

not covered in (5) above. ***********

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APPENDIX A

SCHEDULE OF ELIGIBLE INVESTMENTS

(Pursuant to Section 98-a of the State Finance Law)

___X_ (i) Bonds and notes of the United States. ___X_ (ii) Bonds and notes of this state. ___X_ (iii) General obligation bonds and notes of any state other than this State, provided that such bonds and notes receive the highest rating of at least one independent rating agency designated by the State Comptroller.

___X_ (iv) Obligations for the payment of which the faith and credit of the United States or of this state are pledged. Notes, bonds, debentures, mortgages and other evidences of indebtedness of the United States Postal Service; the federal national mortgage association; federal home loan mortgage corporation; student loan marketing association; federal farm credit system or any other United States government sponsored agency, provided that at the time of the investment such agency or its obligations are rated and the agency receives, or its obligations receive, the highest rating of all independent rating agencies that rate such agency or its obligations, provided, however, that no more than two hundred fifty million dollars may be invested in the obligations of any one agency. _____(v) Bonds and notes of the Savings and Loan Bank of the state of New York. _____(vi) Collateral trust notes issued by a trust company, all of the capital stock of which is owned by not less than twenty savings banks of the state of New York. _____(vii) Obligations of any corporation organized under the laws of any state in the United States maturing within six days provided that such obligations received the highest rating of two independent rating services designated by the State Comptroller and that the issuer of such obligations has maintained such ratings on similar obligations during the preceding year, provided however, that no more than one hundred million dollars may be invested in such obligations of any one corporation. _____(viii) Bonds and notes issued for any of the corporate purposes of the New York state housing finance agency. _____(ix) Judgments or awards of the court of claims of New York

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_____(x) Bonds and notes issued for any of the corporate purposes of the New York state medical care facilities finance agency. _____(xi) Bonds and notes issued for any of the corporate purposes of the New York state project finance agency. _____(xii) Bonds and notes issued for any of the corporate purposes of the municipal assistance corporation for New York City. ___X_ (xiii) Certificate of deposits of a bank or trust company in this state. Any certificate of deposit shall be fully secured by the issuer thereof. ___X_ (xiv) Repurchase agreements using United States Treasury obligations seven years or less. All investments must conform to section 98-a of the State Finance Law as may be amended from time to time.

**********

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Section II

AMENDMENTS TO THE GUIDELINES SINCE THE LAST ANNUAL INVESTMENT REPORT

The following Amendment is proposed to the Guidelines Removal of limit for Maximum Amount of Deposit by Institution by Changing the Current Provision which reads: VII. DESIGNATION OF DEPOSITARIES Any bank or trust company with a full service office in the County of Albany is authorized for deposit of monies up to the maximum amount of $35 million for operation funds and $35 million for capital funds. Proposed Provision VII. DESIGNATION OF DEPOSITARIES Any bank or trust company with a full service office in the County of Albany is authorized for deposit of monies.

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Section III

Explanation of the Guidelines and Amendments

The Albany County Airport Authority “Cash Management and Investment Policy"

most recently amended by the Board on March 23, 2015 is based on the principles

of investment safety and control. The Authority's Guidelines contained in Section I

are the Authority’s Investment Guidelines which are currently in effect.

The Guidelines set forth the Authority's statement of policy regarding the

investment of Authority funds and the objectives of such investments. By the

Guidelines, the Authority has determined that the basic guide for the investment of

Authority funds shall be the "prudent person rule" as further limited by statute and

the Authority's Bond Resolutions. As indicated in the Guidelines, the Authority's

objectives for its investment program are to:

To conform with all applicable federal, state and other legal requirements

(legal);

To adequately safeguard principal (safety);

To provide sufficient liquidity to meet all operating requirements (liquidity);

and

To obtain a reasonable rate of return (yield).

The Authority has not amended its investment guidelines since March 23, 2015,

the date of the last annual investment report.

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Section IV

Annual examination of Compliance

with Investments Guidelines

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INDEPENDENT ACCOUNTANT’S REPORT To the Members Albany County Airport Authority We have examined the Albany County Airport Authority’s (the Authority) compliance with its investment guidelines included in the attached annual investment report, and with the requirements of Section 2925 of the NYS Public Authorities Law for the year ended December 31, 2015. Management is responsible for the Authority’s compliance with those requirements. Our responsibility is to express an opinion on the Authority’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and the standards applicable to attestation engagements contained in Government Auditing Standards, issued by the Comptroller General of the United States and, accordingly, included examining, on a test basis, evidence about the Authority’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Authority’s compliance with the specified requirements. In our opinion, the Albany County Airport Authority complied, in all material respects, with the aforementioned requirements for the year ended December 31, 2015. In accordance with Government Auditing Standards, we are required to report significant deficiencies in internal control, identifying those considered to be material weaknesses, violations of provisions of contracts or grant agreements, and abuse that could have a material effect on the Authority’s compliance with Section 2925 of the NYS Public Authorities Law and any fraud and illegal acts that are more than inconsequential that come to our attention during our examination. We performed our examination to express an opinion on whether the Authority complied with the aforementioned requirements and not for the purpose of expressing an opinion on the internal control over compliance with those requirements or other matters; accordingly, we express no such opinion. Our examination disclosed no matters that are required to be reported under Government Auditing Standards. Our examination is not intended to provide any assurance as to the income from investments, fees paid, or investments at the end of the year in Section V through Section VII.

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This report is intended solely for the information and use of management and the Members of the Albany County Airport Authority, and the chief executive officer and chief fiscal officer of the County of Albany and the Office of the State Comptroller and is not intended to be and should not be used by anyone other than these specified parties.

Latham, NY _________, 2016

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Section V

The Authority’s investment and cash management activity during 2015 resulted in

$20,739 in income to the Authority, which includes $8,579 from investments in U.S.

Treasury Obligations and $12,160 from interest on insured or collateralized bank

demand deposits.

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Section VI

The Authority paid no fees, commissions or other charges to firms rendering

investment associated services during 2015.

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DATES

INV. MAT. SECURITY AMOUNT INTEREST RATE

1999 EFC RESERVE FUND - M&T

1-01-15 4-15-15 SLGS 277,389$ * 2,480$ 3.093% 4-15-15 10-15-15 SLGS 277,389 4,290 3.093%10-15-15 12-31-15 SLGS 277,389 * 1,810 3.093%

277,389$ 8,579$

* (2015 Interest Only)


INVESTMENT REPORTDECEMBER 31, 2015

Section VII

Investments held by the Authority at December 31, 2015 are presented below:

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AGENDA ITEM NO. 2.4

Performance Measurement Report for 2015

.











BACKUP MATERIALS:






2-1

ALBANY COUNTY AIRPORT AUTHORITY Mission Statement and Performance Measurement Report


BACKGROUND The Public Authorities Reform Act of 2009 introduced a requirement that Public Authorities adopt a mission statement and performance measurements. During 2010, the Albany County Airport Authority adopted a new Mission Statement and related Performance Measurements. The Albany County Airport Authority adopted Mission Statement Performance Measurements that are consistent with the recommendations found in the Transportation Research Board ACRP Report 19, - Developing and Airport Performance Measurement System issued in 2010 and sponsored by the Federal Aviation Administration. The Albany County Airport Authority had already previously implemented a detailed set of performance measurements at a division and department level which it reports the goals and results which are stated in the annual budget and monthly financial statements. The remainder of this report contains the previously adopted Mission Statement and actual performance measurements for 2011-2015. Division/department level performance measurements for 2011-2015 are presented as supplemental information.

MISSION STATEMENT AND PERFORMANCE MEASURES

The Albany County Airport Authority (Authority) is a body corporate and politic constituting a public benefit corporation established and existing pursuant to the Albany County Airport Authority Act, Title 32 of Article 8 of the New York Public Authorities Law. The State of New York (State) created the Authority in 1993 in order to promote the strengthening and improvement of the Airport, to facilitate the financing and construction of the Terminal Improvement Project (TIP) and subsequent capital improvement programs, and give the Authority the power to operate, maintain and improve the Airport. The Authority is governed by seven members, with four members appointed by the majority leader of the County of Albany (County) Legislature and three members by the County Executive, all with approval of the County Legislature. The Authority members are appointed for a term of four years or until a successor is appointed, except that any person appointed to fill a vacancy will be appointed to serve only the unexpired term. Based on the County’s responsibility for the appointment of the Authority members, their approval of any Airport capital improvement programs and the issuance of certain debt, the Authority is considered a component unit of the County under the criteria set forth by the Governmental Accounting Standards Board (GASB). The Authority does not have any component units. The financial transactions of the Authority are accounted for in a single enterprise fund. The Authority is responsible for the efficient planning, development, administration, operation and financial condition of the Airport. The Authority, as landlord, rents space and assesses fees and charges to the airlines and businesses providing goods and services to the traveling public and to the civilian, business, governmental and military users of the Airport. The Authority is responsible for assuring residents of the County, the Town of Colonie and the surrounding areas of minimal environmental impact from air navigation and transportation. In October of 2005 the Authority employed the services of Maquire-AvPorts, currently AFCO AvPorts Management LLC (“AFCO”) and Aviation Facilities Company, Inc. (“AFCO Parent”) to manage the daily operations and maintenance of the Airport and the services of REW Investments, Inc., d/b/a Million Air to manage the daily operations of the Fixed Base Operation (FBO). The Authority’s strategic direction for the Airport is based upon the following vision, mission, goals, and objectives.

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VISION The Authority’s vision statement is a measurable statement describing the future results the Authority seeks to achieve. The Authority’s vision for Albany International Airport is to provide an exemplary airport in which to visit, travel, and work. MISSION The Authority’s mission statement is a broad statement of what the Authority has been charged to accomplish. The Authority’s mission is to provide adequate, safe, secure and efficient aviation and transportation facilities at a reasonable cost to the people. To accomplish our mission we will:

Provide world-class, customer-oriented transportation services;

Promote airline, cargo, business and general aviation services on airport by providing quality airport facilities;

Operate the airport and provide services in the most cost-effective manner;

Foster inter-model transportation;

Implement the airport’s Capital Improvement Plan; and,

Maintain financial security. GOAL The Authority’s goal for the airport is derived from its mission and vision for the airport and describes the enduring end state desired for the airport. The Authority’s goal for Albany International Airport is:

To be widely recognized as the best airport of its size in the Northeast as well as an innovative model for a facility with vitality, enthusiasm, friendliness, competence, and efficiency.

OBJECTIVES The Authority’s objectives describe the outcomes required to accomplish the goal. The Authority’s objectives in operating the airport are:

To promote safe, secure, efficient and economic air transportation by preserving and enhancing Airport capacity;

To acquire, construct, reconstruct, continue, develop, equip, expand, improve,

maintain, finance and operate aviation and other related facilities and services; To stimulate and promote economic development, trade and tourism; To form an integral part of a safe and effective nationwide system of airports to meet

the present and future needs of civil aeronautics and national defense and to assure inclusion of the Authority’s facilities in state, national and international programs for air transportation and for airway capital improvements; and,

To ensure that aviation facilities shall provide for the protection and enhancement of

the natural resources and the quality of the environment of the state and the capital district area.

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VALUES The Authority’s values describe how the Authority will conduct itself, both internally and externally, while engaging in business activities. The Authority’s values are: Responsiveness – being proactive; having a bias for action and sense of urgency in getting things done; anticipating the needs of tenants and passengers by taking fast action to surpass their expectations; encouraging tenant and passenger input. Integrity – possessing a commitment to doing the right things right, with consistent adherence to the highest professional standards; keeping commitments to our tenants, passengers, employees, and others. Innovation – dedicating ourselves to learning and growing; constantly searching for better ways to get the job done; using our collective imagination effectively to solve problems for our tenants, passengers and employees; going beyond perceived boundaries to get desired results. Teamwork – recognizing that every board member, employee, volunteer, tenant, and others are important to the complete satisfaction of Albany International Airport; feeling personally responsible for successful outcomes; treating everyone with respect; communicating regularly, directly and honestly with our board members, employees, volunteers, tenants, and others.

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MISSON STATEMENT LEVEL PERFORMANCE MEASURES The Authority has identified the following performance measurements to assess its success in achieving its mission and intended public purpose.

*EPAX is enplaned passenger. Note 1. An Insufficient number of customer satisfaction surveys were conducted in 2011, 2013 and 2015 to report on this performance measure.

Area of Measurement

Performance Measure

Performance Measure Component Final 2011

Final 2012

Final 2013

Final 2014

Final 2015

Safety Employee Accidents and Incidents

Construction Injuries Lost Time Injury Rate 13

9 14

9

26 Airfield Violations Runway Incursions 0 0 0 0 0

Runway Condition FAA Safety Compliance 0 0 9 0 0

Inspection Discrepancies 2 14 10 8 10 Security Security Incidents

and Security Badge Breaches

Violations Letters of investigation 5 2 0 1 2 Violations 0 1 0 0 0

Financial Revenue Management Total Airline per EPAX* $11.12 $10.09 $10.30

$9.77

$9.96

Total Non-Airline Revenue per EPAX* $24.29 $24.21 $24.44 $25.66 $24.06 Total Revenue per EPAX* $40.57 $38.84 $39.28 $39.90 $38.45

Cost Performance Operating Cost per EPAX* $10.14 $9.36 $9.57 $9.09 $8.61

Airport Cost per EPAX* $7.92 $7.64 $7.60 $7.22 $7.05

Debt Management Debt Service Coverage Ratio 1.33 1.33 1.26 1.36 1.39

Debt per EPAX* $7.80 $8.88 $7.62 $7.29 $6.82 Liquidity Days Unrestricted Cash on Hands 143 165 170 189 205

Operational Aircraft Delays caused by Airport

Number of Aircraft Delay caused by Airport or Runway Closings 0 0 1 0 0

Aircraft Delays caused by Fixed Base Operations Number of Aircraft Fueling Delays 5 5 1

3

3

Customer Service

Service Quality Terminal Cleanliness Concessions Quality and Variety (5 is the highest) note 1

4.4 note 1

4.6 note 1

Customer Satisfaction

Customer Survey Results (5 is the highest) note 1

4.3 note 1

4.6 note 1

Environmental Sustainability

Environmental Compliance

Violations Identified by Regulatory Agency De-Icing Material Discharge Frequency and Severity of Spills SPDES violations DEC violations

0 0

0 0

0 0

0 0

0 0

Noise Noise Levels /Noise Complaints 17 19 10

33 26

People Employee Satisfaction

Employee Turnover AFCO AvPorts Million Air FBO Albany County Airport Authority

8.2% 24.0% 6.4%

16.7% 25.0%

0%

19.8% 13.75%

0%

19.9% 25.0%

0%

27.0% 25.0% 6.4%

Workforce Diversity Minority Representation in Workforce AFCO AvPorts Million Air FBO Albany County Airport Authority

13.2% 29.4% 4.4%

14.0% 12.9% 4.3%

13.5% 16.7% 4.3%

15.0% 11.9% 4.3%

16.7% 16.7% 4.3%

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SUPPLEMENTAL INFORMATION DIVISION/DEPARTMENT LEVEL PERFORMANCE MEASURES The following pages contain the division and department level performance measures from 2011-2015. There are three major divisions: “AvPort’s” performance; “FBO” performance; and the Authority (ACAA) performance. AvPorts performance measures provide information on the performance of the major management services contractor at the Airport, which is AFCO AvPorts, LLC (d/b/a AvPorts). The FBO performance measurements provide information on the performance of the management services contractor for the Fixed Base Operations and Fuel Farm, which is REW Investments, Inc. (d/b/a Million Air). The Authority performance measures provide information the Authority is exclusively responsible for. Collectively these division/department level performance measures support the achievement of the Mission level performance measures. Airfield Performance Measurements

2011 Final 2012 Final 2013 Final 2014 Final 2015 FinalNumber of vehicle accidents on Airfield over $1,000 1 2 0 0 1Airport remained open for all airline operations 100% 100% 99% 100% 100%Electrical work-orders 823 546 797 659 621SPEDES permit sanctions 0 0 0 0 0Gallons of deicing aircraft storm water fluid collected 27,251,129 11,136,801 16,227,459 18,495,907 15,586,695

Pounds of Biochemical Oxygen Demand in the collected storm water removed (the higher the better) 3.0% 2.7% 3.1% 2.7% 3.1%Employees with CDL licenses 33 34 50 34 35Runway incidents 0 0 0 1 0Notices to Airmen (NOTAMs) for airfield lighting 0 0 0 1 54Occupational Safety and Health Administration (OSHA) reportable incidents 4 1 3 1 7

Liquid potassium acetate used on runways (avg gallons per snow ice event) 2,260 0 6,050 N/A 1,768Airfield electric usage (KWH) 757,440 647,595 526,083 475,158 595,519Overtime/Personnel Services (%) 12.3% 8.5% 10.9% 10.5% 14.1%

Terminal Performance Measurements

2011 Final 2012 Final 2013 Final 2014 Final 2015 FinalHVAC Equipment in operation 100.0% 100.0% 100.0% 97.9% 100.0%Work Orders 3,552 4,074 3,837 3,587 3,413Survey: cleanliness of the terminal N/A N/A N/A 91% N/AAverage # of days a work order remains open 3.1 2.9 2.9 3.0 2.5Plumbing Equipment in operation 100% 100% 100% 100% 100%Terminal Maintenance direct cost per square foot $16.64 $15.40 $16.14 $15.87 $16.63Terminal electrical usage (KWH): 79 Building 1,523,520 1,582,537 1,389,590 1,563,618 1,569,493Terminal electrical usage (KWH): 98 Building 7,589,948 7,797,692 7,218,686 7,681,612 7,700,324Overtime/Personnel Services (%) 6.5% 7.5% 5.0% 5.6% 7.4%


2015 AvPort's Performance Measurements

For the twelve months ended December 31

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Loading Bridge Performance Measurements2011 Final 2012 Final 2013 Final 2014 Final 2015 Final

Direct Cost per Loading Bridge $18,401 $18,602 $17,802 $12,773 $25,158Airline Employees trained 0 0 0 2 11Over-the-Wing (OTW) Loading Bridge total operations 3,712 4,489 4,048 4,238 3,881Loading Bridge electrical usage (KWH) 657,652 675,652 625,483 665,594 667,216OTW Loading Bridge Maintenance calls 92 145 105 4 59OTW Loading Bridge out of service 4.8% 5.7% 0.7% 1.8% 10.9%Overtime/Personnel Services (%) 17.5% 13.0% 3.0% 13.0% 19.7%

Parking Performance Measurements

2011 Final 2012 Final 2013 Final 2014 Final 2015 FinalExpress parking transactions 174,719 222,674 273,241 290,517 308,094Cashier parking transactions 462,156 390,456 334,266 321,395 315,367Cashier parking transaction errors 184 158 110 93 109Shuttle Bus Survey (new measurement for 2008) N/A N/A N/A N/A N/ACustomer/Vehicle Contact N/A N/A N/A N/A 0OSHA recordable accidents 0 1 3 1 6Parking electrical usage (KWH) 248,818 357,413 353,652 352,612 345,278Parking Garage electrical usage (KWH) (23.5% of 98 building gets allocated) 2,533,576 2,602,923 2,409,647 2,564,174 2,570,421

YTD Loss/Gain -$2,249 -$1,613 -$116 -$399 -$1,178Overtime/Personnel Services (%) 12.6% 12.0% 10.6% 14.1% 18.2%

Landside Performance Measurements

2011 Final 2012 Final 2013 Final 2014 Final 2015 FinalNumber of tenants 60 60 57 56 53Landside building rental (Sq ft) * 297,797 304,876 262,313 279,026 316,243Landside land rental (acres)* 31 33 31 32 31Tenant complaints 1 0 2 0 0

*Includes rented space/land only

ARFF Performance Measurements

2011 Final 2012 Final 2013 Final 2014 Final 2015 FinalAnnual Dispatch Calls 437 484 461 394 527Tour conducted by ARFF 53 36 24 23 36AED classes conducted 10 4 11 22 2Fire Extinguishers inspected/serviced 4,219 4,824 5,395 5,743 5,904NYS Fire Fighter training (training hours) 1,992 1,992 1,992 1,992 1,992OSHA required fire training (training hours) 156 156 156 156 156NYS EMT training (training hours) 480 480 480 480 480FAA ARFF training (training hours) 516 516 516 516 516Building code inspections 28 33 14 19 30Overtime/Personnel Services (%) 13.8% 13.9% 13.4% 16.4% 18.9%

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Operations Performance Measurements2011 Final 2012 Final 2013 Final 2014 Final 2015 Final

Work Orders (Facility) Building Maintenance calls 3,557 4,066 3,846 3,315 3,491Work Orders (139) aeronautical areas 799 378 487 448 793Notice to airmen (NOTAMS) 671 374 419 1,261 1,158Bird Strikes 28 53 30 42 27Property Damage Reports 125 118 142 164 154Bodily Injury Reports 197 245 192 222 185FAA 139 Inspections discrepancies 2 14 13 9 9Operations' employee accidents 2 1 0 0 0Operations' property accidents 0 1 4 0 0Overtime/Personnel Services (%) 5.2% 5.9% 5.0% 5.4% 10.5%

Security Performance Measurements

2011 Final 2012 Final 2013 Final 2014 Final 2015 FinalSecurity Trainees 519 493 511 667 559Driver Trainees 284 227 272 377 277Finger Printing 476 486 505 689 727Badges Issued 159 256 148 174 130Revalidations* 385 539 373 602 521Escort Required Badges Issued 2,178 2,179 2,865 2,672 3,524Business Center Security Passes 2,087 2,251 2,298 775 186Curbside Accidents 2 0 2 0 0Curbside Security - Overtime/Personnel Services (%) 4.1% 4.6% 3.6% 3.8% 10.9%*Revalidations of badges are performed every other year

Vehicle Maintenance Performance Measurements

2011 Final 2012 Final 2013 Final 2014 Final 2015 FinalHeavy Equipment (Units) 61 61 61 61 47Light Vehicles (Units) 47 47 47 47 34Light Equipment (Units) 233 233 233 233 233Average age of ARFF Fleet (yrs) 11 12 7 7 9Average age of Shuttle Buses (yrs) 6 7 7 7 4Average age of Fuel Trucks (yrs) 6 7 10 10 12Average age of other large vehicles 15 16 15 15 17Average age of Pick-ups 8 9 11 11 15Shuttle Bus (Not less than 6 operational) 7 7 7 6 7Fuel Truck (Not less than 7 operational) 5 7 8 8 7Technicians trained 20 18 8 1 33Overtime/Personnel Services (%) 12.8% 7.7% 10.7% 9.1% 12.9%

AvPort's Administration Performance Measurements

2011 Final 2012 Final 2013 Final 2014 Final 2015 FinalAvPort's total full time employment equivalents 162.5 157.0 155.0 154.5 150.5Total AvPort's overtime 10.3% 9.2% 9.0% 10.5% 13.6%Budgetary needs met yes yes yes yes yesSaving/revenue producing ideas 1 3 0 0 0Total AvPorts Property Damage Reports 31 38 31 24 35Administration Overtime/Personnel Services (%) 0.0% 0.0% 0.0% 0.0% 0.0%Employee turnover 8.2% 16.7% 19.8% 19.9% 27.0%

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Commercial Aviation Performance Measurements

2011 Final 2012 Final 2013 Final 2014 Final 2015 FinalNumber of accidents/incidents 0 0 0 2 0Number of airline delays counted against MA 5 5 1 2 3Into-plane gallons pumped 18,218,999 17,738,449 17,068,920 16,971,830 16,835,885Number of Audits performed by Airlines/ Quality Control- Employeee Training Records New for 2013 New for 2013 11 11 24Number of non-compliance items reported in Airline Audits New for 2013 New for 2013 7 3 3AvGas fuel sales commercial 233,142 184,479 184,107 180,785 173,843Deicing gallons pumped 202,077 115,831 154,885 154,363 123,604Workers' compensation cases 0 0 1 0 0Employees who have completed Safety Programs 15 17 16 16 17Quality control audits at the Fuel Farm (less the better) 18 13 11 8 12Completed monthly training programs 12 12 12 12 12Monthly survey of airlines 100% 100% 100% 100% 100%Overtime/Personnel Services (%) 18.5% 11.4% 9.3% 12.8% 12.0%

General Aviation Performance Measurements

2011 Final 2012 Final 2013 Final 2014 Final 2015 FinalAvGas fuel sales (gallons) 71,747 68,240 60,447 55,902 70,438Jet A fuel sales (gallons) 910,143 870,095 840,347 952,761 967,345Number of international flights 577 592 595 753 707General Aviation Aircraft customer transactions 7,250 6,859 6,153 6,515 6,949Number of Aircraft Arrivals 6,985 6,321 5,541 6,073 3,949Number of Aircraft fueled 5,157 5,245 4,575 4,870 5,901Number of ramp fees collected 1,896 1,989 1,433 1,883 1,661Number of landing fees collected 4,945 4,249 4,070 4,060 3,811Employees who completed the NATA Safety 1st Program 20 18 30 11 12Employees who completed all Safety Programs 15 18 26 10 20Property Accidents 1 0 0 1 2Quarterly reports from monthly safety meetings 100% 100% 100% 100% 100%Number of top 20 customers surveys completed 37 34 18 20 25Overtime/Personnel Services (%) 11.8% 14.6% 15.0% 10.0% 11.1%

Million Air's Administrative Performance Measurements

2011 Final 2012 Final 2013 Final 2014 Final 2015 FinalMillion Air's total full time employment equivalents 34 32 37 35 35Total Million Air overtime 10.3% 11.0% 10.6% 9.3% 9.7%Number of marketing events attended New for 2013 New for 2013 3 2 2Number of based tennants New for 2013 New for 2013 27 25 14Employee turnover annum 24% 25% 14% 25% 25%Workers' compensation cases 0 3 4 0 0Number of customers gained (prior year comparison) -5% -5% -10% 6% 7%Overtime/Personnel Services (%) 1.3% 1.9% 2.0% 1.2% 0.6%

Albany International Airport 2015 FBO Performance Measurements


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ACAA Performance Measurements

2011 Final 2012 Final 2013 Final 2014 Final 2015 FinalACAA's total full time employment equivalents 23 23 22 24 22Community meetings 62 73 59 61 63Aviation conferences/meetings 13 21 25 23 36Open Accounts Receivable/Total Operating Revenues 3.0% 3.7% 4.3% 4.4% 4.2%Open Accounts Payable/Total Operating Expenses 1.6% 1.9% 3.3% 4.5% 1.7%SPDES Permit yes yes yes yes yesFAA: Part 139 Operation Compliance yes yes yes yes yes Part 77 Airspace Compliance yes yes yes yes yes Part 150 Noise Program yes yes yes yes yes Part 121 Air Cargo Carriers yes yes yes yes yesUpdate maps & charts of Airport yes yes yes yes yesLandside building rent increase/(decrease) from previous year 0% 1% -4% -2% 9%T Hangar rent increase/(decrease) from previous year -3% -7% 3% 7% -6%Tie Down rent increase/(decrease) from previous year -9% 16% 21% -51% -6%Landside land rent increase/(decrease) from previous year 5% -5% 4% -2% -1%DBE Participation for construction/engineer contractors 10% 9% 9% 9% 9%MWBE Participation for construction/engineer contractors 18% 11% 33% 39% 30%Minority Representation in the Workforce-Concessions HMS Host 20% 22% 20% 17% 24% McDonalds 53% 58% 55% 48% 32% Villa Fresh Italian Kitchen/Green Leafs 37% 46% 30% 48% 57% Paradies 28% 31% 27% 24% 29% Dunkin Donuts 30% 33% 50% 53% 52%Ambassador Program-hours volunteered 28,430 16,161 15,743 16,647 15,428Ambassador assistance - landside 20,328 22,441 34,859 49,516 51,313Ambassador assistance - airside 22,310 21,558 21,649 21,301 24,461Canine assistance-landside New for 2015 New for 2015 New for 2015 New for 2015 23,016Canine assistance-airside New for 2015 New for 2015 New for 2015 New for 2015 5,427Concession revenue increase from previous year 6% -1% -2.5% 10.4% 4.1%Community tours 54 40 25 29 35


2015 ACAA Performance Measurements


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