2014 Annual Report - Chicago Rockford International Airport

2014
Annual Report
greater rockford airport authorit y
Fiscal Year ending April 30, 2014
Rockford, Illinois
CHICAGO ROCKFORD
INTERNATIONAL AIRPORT
2
Table Contents
of
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financial data
accomplishments
service & development
Community events & Operations
CHICAGO ROCKFORD
INTERNATIONAL AIRPORT
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a letter
from the director
The Greater Rockford Airport Authority staff and Board
We are grateful for the relationships and partnerships
of Commissioners, continue to make great strides in
we have been able to establish throughout the region.
airport growth. As the Executive Director, it is my privilege
Keeping our airport operating safety is one of our highest
to oversee the same dedication and forward thinking in
priorities and we take great pride in doing so.
2013 that has been demonstrated in the past, whether
it be with new or continued projects.
We were successful in returning to the airport and
our region the 2014 AirFest. We continue to support
michael p. dunn
executive DIRECTOR
The Airport celebrated the tenth year of the return of
the community by participating in other events
passenger service this past fiscal year and the highest
throughout the year. Be sure to read about them in the
month on record for passengers boarding flights. We
following pages.
are now up to eight regular and seasonal vacation
destinations. Our customer service is exemplary and
Thank you for your continued support of one of the
we even improved upon it by introducing our Airport
greatest assets to this region that we call the Chicago
Ambassador program, which has been a huge success.
Rockford Airport Authority.
RFD received an award from the Illinois Division of
Aeronautics for the 2013 Primary Airport of the Year.
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GRAA Board of commisioners
Ray Wetzel
Kenneth Edward Copeland
Treasurer
Secretary
[email protected]
[email protected]
paul R. cicero
Chairman
[email protected]
Thomas Myers
Vice Chairman
[email protected]
Tom dal santo
Commissioner
Thomas J. Lester
Legal Counsel
[email protected]
Hinshaw & Culbertson
patrick derry
[email protected]
Commissioner
[email protected]
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financial data
On behalf of the Board and staff, I would like to thank you for
conformity with Generally Accepted Accounting Principles
taking the time to review our Popular Annual Financial Report
(GAAP). The Authority has received GFOA’s Certificate of
(PAFR). Whether you are a resident, passenger or a business,
Achievement for Excellence in Financial Reporting for the
you are to be commended for taking the time to gain a greater
CAFR for 17 consecutive years. A copy of the CAFR can be
understanding of the Greater Rockford Airport Authority.
found at the Authority website.
The goal in producing this report is to communicate the
Authority’s financial operations in a straightforward and easyto-read format so that you may obtain a better understanding
of the airport.
download THE CAFR
The information in this report is derived from the Authority’s
AMY M. OTT
DEPUTY DIRECTOR
Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended April 30, 2014, which was audited by Baker Tilly
Virchow Krause LLP and received an unmodified opinion. The
CAFR is a highly detailed financial report that is prepared in
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financial data
economic condition
The financial condition of the Authority is primarily dependent
The Authority is not immune to the global economic crisis with
upon the amount of aircraft utilization at the Chicago Rockford
the cargo continuing to decrease. However appears that
International Airport (RFD). That utilization, in turn, is dependent
activity levels have stabilized and forecasts plan for a slight
upon several factors: the amount of cargo that is sorted at the
increase in the following year. Cargo loads decreased by
United Parcel Service hub; the number of passenger airlines that
8.55% the result of very limited if any charter cargo activity
service RFD; the number of passengers that use the airport; the
during the year as we have had in the past. Both the statistics
national economy, which influences buying and subsequent
and the revenue reflect these decreases. The most recent FAA
shipping habits; and, the local economy that influences the
cargo reports state RFD is the 25th largest cargo airport in the
willingness of the consumer to purchase air travel.
United States. The national trend was flat or slight decreases.
The nature of our cargo in that it does not include any
Passenger growth continues with a 4.5% increase from the
international cargo which helped stabilize the decreases in
prior year. As the volatility of the passenger airlines continues it
domestic cargo for many other US cargo airports. Cargo is a
is important for RFD to diversify the base of airlines that operate
leading indicator and we fully believe that as the economy
at RFD. Currently Allegiant Air offers service to Las Vegas,
begins to grow, so will our cargo activities.
Orlando/Sanford, Clearwater/St Pete, Punta Gorda/Ft Myers,
and Phoenix/Mesa. Apple Vacations offers seasonal service
The Chicago Rockford International Airport still remains a
to Cancun, Puerto Vallarta and Punta Cana. Allegiant Air
viable economic engine for the region and state. This last fall
accounts for 80% of all seats currently available at RFD.
the State of Illinois issued the most recent economic impact
(continue)
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financial data
report for all Illinois airports. RFD continues to be a driving force
industrial skills. A recent study by The Pathfinders (Dallas TX),
with $994.5 million in annual economic impact being the third
polling area employers on existing workforce characteristics,
highest commercial service airport, second and third only
found that labor-shed actually consists of a five-county
to O’Hare and Midway. Our combination of various business
region with a population of over 807,000 individuals and
strengths and our international grade facility position us well
that the workforce was over 435,000 people. This number
for future growth.
far exceeds the federal government’s assumption of a twocounty MSA population of approximately 350,000 people
The economic condition and outlook for the region has
and a labor force of about 175,000. The region’s low cost of
improved slightly over the prior year. Employment needs are
living and competitive wage rates benefit both employer
increasing slowly but greater than the needs in the last two
and employee.
prior years and the unemployment rate decreased from
9.8% to 9.1%. The region continues to expand and diversify
its industrial base and employment opportunities. The
Metropolitan Statistical Area (MSA) is over 350,000 people
and is the fastest growing MSA in the state of Illinois and has
been for two consecutive years. This growth is expected to
continue. The region is a community that still understands
shift work and values companies that need employees with
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financial data
assets
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Financial Highlights
%
FYE 2014
FYE 2013
FYE 2012
2014
current assets - unrestricted
9,526,300
8,164,684
10,370,053
16.7
(21.3)
current assets - net
107,111,847
111,862,425
107,294,716
(4.2)
4.3
investments for long-term purposes
348,000
2,095,322
538,032
(83.4)
(17.4)
deferred charges
233,222
206,606
200,755
12.9
2.9
TOTAL ASSETS
$117,219,369
$122,329,037
$120,403,556
(4.2)
1.6
change
2013
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financial data
liabilities
net position
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Financial Highlights
%
FYE 2014
FYE 2013
FYE 2012
2014
current liabilities
1,837,540
1,144,460
1,522,093
60.6
(24.8)
long-term liabilities
less current maturities
7,167,324
6,359,472
6,869,757
12.7
(7.4)
TOTAL liabilities
$9,004,864
$7,503,932
$8,391,850
19.9
(10.6)
net investment in capital assets
102,196,797
107,937,425
103,205,716
(5.3)
4.6
unrestricted
3,090,110
3,749,228
5,666,680
(17.6)
(33.8)
total net position
105,286,907
111,686,653
108,872,396
(5.7)
2.6
total net liabilities & net position
117,219,369
122,329,037
120,403,556
(4.2)
1.6
change
2013
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financial data
Financial Highlights
The financial schedules presented in the PAFR have been
The Statement of Net Position presents information on all the
summarized and combined from assorted financial
Authority’s assets and liabilities, with the difference between
statements in the CAFR. This report is not intended to replace
the two reported as net position. Over time, increases or
the full disclosure financial statements that can be viewed in
decreases in net position may serve as a useful indicator of
our CAFR. Rather, by reading this report, you will be able to
the Authority’s financial position. The tables on the following
gain a general understanding and summary of the Authority’s
pages show that, as of April 30, 2014, assets exceeded
financial activities and position for the fiscal year ended
liabilities by $105.3 million. By far, the largest portion of the
April 30, 2014.
Authority net position, which is 97 percent or $102.2 million,
reflects its investment in capital assets, less any outstanding
In order to receive an Award for Outstanding Achievement
debt used to acquire those assets. The Authority uses these
in Popular Annual Financial Reporting, a government
capital assets to provide services to users of the airport.
unit must publish a Popular Annual Financial Report
Consequently, these assets are not available for future
(PAFR) that conforms to program standards of creativity,
spending. The remaining three percent or $3.1 million
presentation, understandability and reader appeal. An
represents unrestricted net position and available to meet
Award for Outstanding Achievement in Popular Annual
any of the authority’s ongoing obligations.
Financial Reporting is valid for a period of one year only
and this is the second year the Authority has received this
award. The Greater Rockford Airport Authority believes
our current report conforms to the Popular Annual
Reporting requirements.
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financial data
FYE 2014
revenue
operating
revenue
FYE 2013
expenses
$4,482,831
$4,906,708
operating
expenses
net position
$18,173,364
18,429,128
(8.6)% Change
other
revenues
$4,384,377
$4,140,012
other
expenses
$8,867,208
$9,046,720
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12,597,496
(76.2)% Change
$90,201
$400,831
(77.5)% Change
TOTAL EXPENSES
(2.0) % Change
$2,996,611
(1.4)% Change
5.9% Change
total revenues
Capital
Contribution
$18,263,565
$18,829,959
Change in
Net Positions
(3.0) % Change
$(6,399,746)
$2,814,257
(327.4)% Change
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financial data
How the Authority is Funded
Revenues are derived from many sources that include the
Staff concentrates its efforts to increase the amount of
day-to-day operations of the airport and include aircraft
fixed revenue over variable revenue as a high percentage
landing fees; aircraft fuel flowage fees, hangar leases, land
of variable revenue could be financially catastrophic in
leases, building leases, airport service fees, AirFest revenues,
an airport economic downturn. Lease revenue and other
operating grants, and Foreign Trade Zone Fees. Other revenue
revenue (fixed revenue) will serve as a hedge in possible future
sources include tax levy, state replacement tax revenue,
economic downturns. Staff continues efforts to investigate new
Passenger Facility Charges and interest income. Property taxes
opportunities to grow the revenue sources.
are levied to cover certain operating expenses. The total levy
is approximately $.1043 per $100 of assessed valuation that
results in an annual cost of $36 to the homeowner of a $100,000
home. Passenger Facility Charges are based on the number of
passengers flying out of the airport.
view next page for revenue chart
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financial data
REVENUE
SHOWN REVENUE
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23%
20%
8%
42%
6%
1%
AIRPORT FEES
LEASE REVENUE
SERVICES FOR AIRSHOW,
& OTHER REVENUE
TAXES
PROPERTY & CORPORATE
PASSENGER FACILITY
CHARGES
OTHER INCOME
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financial data
How we Operate the Authority
Expenses are also categorized between operating and non-
works to hire the best most highly qualified and motivated
operating. Operating expenditures are those expenditures that
people. Contractual services are 41% of the total expenses
are incurred as a result of the direct operation of the airport,
and include all contracted services and utilities. Commodities
and are further broken down by operating departments;
make up only 14% of total expenses. The other category is 4%
Finance and Administration, Operations, Facilities and
of total expenses and is for those costs not included in the other
Maintenance, Marketing and Communications, Terminal
sections and includes the glycol retention treatment facility,
Services,
landfill and environmental costs and other payments. Interest
AirFest,
Cargo
Development,
and
Passenger
Development. Non-operating expenditures are expenditures
expense makes up only 1% of total expenses.
for debt service interest.
Personnel Services accounts for 46% of expenses and is
traditionally one of the largest costs for the Authority. The
Authority views the employees as its most important asset and
View next page for expenses chart
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financial data
EXPENSES
SHOWN EXPENSE
46+54+z 14+86+z 35+65+z 1+99+z 3+97+z
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46%
14%
35%
1%
4%
PERSONNEL & BENEFITS
COMMODITIES
CONTRACTUAL
SERVICES
INTEREST
EXPENSE
OTHER
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accomplishments
wins award for annual report
RECOGNIZED IN NATIONAL PUBLICATION
Recognized by the Government Finance Officers Association
The Rockford Airport is in the national spotlight.
(GFOA) for the 17th consecutive year for Certificate of
featured in Airport Business Magazine in a special report
Achievement in Financial Reporting. The 16th consecutive
called, “Rockford Gets It Right.” The publication highlighted
year for the Distinguished Budget Presentation award. The
RFD’s high passenger numbers, which set a record last year.
second year for the Outstanding Achievement in Popular
Not only that, it says a majority of RFD flights are at least 89%
Annual Financial reporting.
full. It says cargo business is central to RFD’s success since it
It was
offers clients quick-in, quick-out access.
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10 YEARS OF PASSENGER SERVICE
Labeled “Chicago’s Best Kept Secret”
primary airport of the year
Chicago Rockford International Airport (RFD) was flying high as
The secret is out about Chicago Rockford International Airport
The Illinois Division of Aeronautics has announced that the
it announced an important milestone in its history. The airport
(RFD) as International magazine Airports of the World highlights
Chicago Rockford International Airport (RFD) has been
celebrated 10 years since the return of passenger service in
RFD in its October cover story, Chicago’s Best-Kept Secret.
named the 2013 Primary Airport of the Year. This honor was
2003. For the nearly 1.8 million fliers that have passed through
RFD’s focus on affordable leisure destinations combined with
formally presented to the airport at the annual Illinois Aviation
RFD’s gates over the past 10 years, it’s hard to imagine a time
simple amenities such as free parking, free wireless and short
Conference Luncheon held on May 16, 2013 in Moline, IL. The
when passenger service wasn’t an option. RFD has consistently
processing times, has led to record passenger growth. As RFD
selection of “Airport of the Year” is based on a number of criteria
broken its own passenger numbers. In March 2013, RFD had
celebrates the ten-year return of passenger service, more
including cooperation and coordination with the Division of
its highest month on record with 35,453 passengers boarding
than 1.8 million passengers have passed through its gates -
Aeronautics and Federal Aviation Administration, the facility’s
flights. Demand for flights has brought in new airlines and new
statistics that caught the attention of Airports of the World and
safety record, aeronautical events, and maintenance of the
destinations. Over the past decade, RFD has been served
prompted the in-depth story on RFD’s formula for success. RFD
facility. The accomplishments that contributed to this award
by 12 airlines and flown to more than 19 leisure destinations,
serves nine non-stop destinations including Cancun, Denver,
include completing two phases of runway construction on
including five international locations. The economic impact
Ft. Myers, Las Vegas, Orlando, Phoenix, Puerto Vallarta, Punta
Runway 1/19, Rockford AirFest 2012, work with Illinois Jobs Now
of the airport has been impressive as well. RFD’s air service has
Cana and Tampa Bay.
capital funding of parking lot expansion, and partnering with
brought in more than $60 million in federal and state investment
the City of Rockford and the Illinois Department of Commerce
grants, representing a $300 million economic impact on the
and Economic Opportunity on a 70 acre solar farm. In addition,
Rock River Valley region. Additionally, RFD has a direct impact
RFD hosted numerous special events and was successful in
on approximately 5,200 jobs, which is an increase of about
maintaining a safe operating facility.
1,300 jobs in the past 10 years.
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accomplishments
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primary airport of the year
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accomplishments
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service & development
Puerto Vallarta Service
Partnership between RVC and RFD
Today the Greater Rockford Airport Authority approved an
In a move designed to promote economic development
agreement with Apple Vacations to provide nonstop service
and position a more strongly aligned workforce, the Greater
to Licenciado Gustavo Díaz Ordaz International Airport (PVR)
Rockford Airport Authority (GRAA) and Rock Valley College
in Puerto Vallarta, Mexico. Puerto Vallarta is home to several
(RVC) have combined efforts to create an expanded Aviation
major tourist attractions including El Pitillal, The Marieta Islands,
Maintenance Technology Program. The agreement, having
Las Ánimas Beach, and Los Arcos National Marine Park. In
been in the works for months, promotes the shared community
addition to the flights to Puerto Vallarta, Apple Vacations is
vision and value of workforce development and economic
adding a second weekly flight to Punta Cana out of RFD.
growth that is vital for the region’s future. As a part of the
These destinations have drawn solid bookings at RFD with
proposed lease, GRAA will lease land to RVC to build a state-
flights consistently at or near capacity.
of-the-art 40,000 square foot Aviation Maintenance Training
facility on Airport grounds to house the RVC educational
Destination Sunshine Heats up Winter Travel for RFD Fliers
Don’t put away your swimsuits just yet! Chicago Rockford
International Airport (RFD) hosted the 5th annual “Destination
Sunshine” travel fair on November 9th in the main terminal.
course of study for aeronautical maintenance and repair.
Currently, the program is taught in a 9,800 square foot building.
The new facility will allow RVC to significantly increase the
quantity of students both participating and graduating from
the program.
This event, presented by Camelot World Travel and Apple
Vacations, featured discounted vacation packages to
Cancun, Puerto Vallarta, and Punta Cana.
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community events & OPERATIONS
Disaster Response Exercise
Aviation Week
The Chicago Rockford International Airport (RFD) held
You could earn your wings at Chicago Rockford International
emergency training and disaster response exercises on
Airport (RFD) as it showcased the most influential military
Saturday, May 4 in Rockford and Stillman Valley. The exercise
aircraft of the last century during Aviation Week, July 19-27.
included 150 local volunteers acting as injured passengers.
Many offerings from EAA AirVenture, known as the world’s
The U.S. Department of Homeland Security, Transportation
greatest aviation celebration, were celebrated here in our
and Security Administration, Federal Aviation Administration,
region. Guests experience mission flights, ground and cockpit
local police, hospitals, and Airport Rescue and Fire Fighter
tours and viewing opportunities from various flying wonders
(ARFF) crews participated along with Greater Rockford
from World War II, the Korean War, and Vietnam. Take off in
Airport Authority staff. All of the participating agencies were
the beautifully restored B-17G Flying Fortress “Aluminum
evaluated by a team of experts at the site. In accordance
Overcast.” One of only 13 Fortress’s still flying, experience
with FAA requirements, the airport conducts a full-scale
exceptional flight and ground tours aboard one of World
disaster response exercise every three years. Exercise
War II’s most vital and magnificent aircrafts. Boeing B-29
objectives included testing communications, fire and police
Superfortress bomber, FIFI, the last remaining flying example
response, emergency medical response, multiple casualty
of the aircraft in the world flew on July 22. Aviation Week
hospital plans, inter-agency coordination and the incident
culminated with the largest gathering of Bonanza aircraft
command system.
in the world.
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community events & OPERATIONS
Four-Legged Passengers Trot the Tarmac
A Boeing 727 operated by H.E. Tex Sutton Equine Transportation
number of grooms or assistants to accompany their horse
landed Thursday at Chicago Rockford International Airport
when traveling, helping assure safe handling by someone
(RFD). On board were eight thoroughbred horses all bound
familiar with the individual animal from stall to stall.
for The Arlington Million Race, one of this country’s largest
and most famous horse races. The Boeing 727 special
freighter, First Class Equine Air Travel, is based in Lexington, Ky.
Ultimate Tug-of-War: 757 vs People - Annual UPS plane pull
affectionately called “Air Horse One”; the aircraft can carry 21
horses and 15 passengers. Flight crew members are trained
How many people can say they’ve pulled a 757 aircraft with
to be sensitive to the travel needs of its equine passengers
their bare hands? Rockford residents got the opportunity in
and operate the aircraft accordingly; avoiding steep ascents
September for a United Way fundraiser sponsored by UPS. This
and descents, steering clear of adverse weather conditions,
was a unique opportunity to pull an aircraft weighing over
putting a premium on smooth, uneventful landings and
200,000 pounds 20 feet across the tarmac - the equivalent
minimizing time between stops all add up to stress free and
of approximately 100 elephants, 57 automobiles or 40 blue
comfortable travel in a climate controlled environment.
whales! Teams were timed, with the quickest team taking
Aircraft configuration permits customers to include a limited
home the trophy.
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community events & OPERATIONS
North Pole Comes to RFD: Special Toys for Tots Celebration
RFD Lights up the Holidays
The Chicago Rockford International Airport (RFD) main
The Loves Park Chamber’s Light up the Parks Parade
terminal was transformed into a winter wonderland on
celebrated its 16th stroll down Elm Street on November 24.
December 14th as it hosted 30 families in a very special Toys
The parade featured several RFD vehicles, including an E1 fire
for Tots event. Currently celebrating its 66th year, Toys for
truck, plow truck and a snow blower. Airport staff and their
Tots provides joy and a message of hope to less fortunate
families were seen aboard the RFD shuttle distributing candy
children through the gift of a new toy or book during the
to the crowds. Celebrating 25 years of community sponsored
holiday season. Last year, toys were distributed to more than
light displays; the Festival of Lights showcase was unveiled
7.2 million children across the nation who might not have
December 6th at Sinnissippi Park. Participating sponsor, RFD,
otherwise experienced the magic of the holidays. Santa and
has featured a display every year, starting as one of only
Mrs. Claus arrived on a UPS 747 to excited children. Christmas
eleven displays in the late 1980’s to one of more than fifty
cookies, milk and toys were given to each child. Each family
in 2013. This year’s display, depicting the beloved Santa on
received a plush blanket as well.
his sleigh pulled by his charming reindeer, utilizes sustainable
LED lights and was built by the airport’s maintenance staff.
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community events & OPERATIONS
RFD to Celebrate First Year of Ambassador Program
Chicago Rockford International Airport (RFD) honored more than 30 airport ambassadors in a
special thank you dinner on November 12. Designed to enhance the passenger experience, airport
ambassadors provided accurate, friendly, courteous information and assistance to RFD travelers.
Since the program’s inception in November 2012, airport ambassadors have logged 2,098 hours of
volunteer service. Duties include curbside luggage assistance, ground transportation, way finding,
customer service and airport special events support.
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directory
CHICAGO ROCKFORD
INTERNATIONAL AIRPORT
mAIN TERMINAL ADDRESS
LOOKING FOR MORE INFORMATION?
2 airport circle
rockford, il 61109
Our administration offices are open Monday through
Friday from 8:00 am to 5:00 pm. We can be reached at
815-969-4000 or you may email us at [email protected].
If you have any questions about your flight status or airline
aDMINISTRATION OFFICE
policies, please feel free to contact the airline directly.
60 airport dr.
rockford, il 61109
PH: (815) 969-4000
fax: (815) 969-4001
email: [email protected]
Hours: mon-fri 8-5pm
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flyrfd.com
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CHICAGO ROCKFORD
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INTERNATIONAL AIRPORT
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