2017€¦ · airport planning: engineering design / construction. director information systems & technology: maintenance / facilities (cmms, building automation) safety / security

Lehigh Valley International Airport Queen City Airport

Braden Airpark

2017

OPERATING AND CAPITAL BUDGETS

APPROVED NOVEMBER 29, 2016

TABLE OF CONTENTS SECTION PAGES 1. Table of Contents 1 - 3 Strategic Framework Organizational Chart 2. 2017 LNAA Budget Summary by Cost Center 4 3. 2017 LVIA Statement of Operating Revenues 5 - 11 4. 2017 LNAA Operating Expense Budget 12 - 16 5. 2017 Queen City Airport and Braden Airpark 17 – 19 Revenue and Expense Budget 6. Insights to Full Time Equivalent (FTE) Information 20 - 22 7. 2017 Budgeted Month by Month Cash Flow Report 23 – 25 2017 Uses of Cash 2017 Available Cash 8. Appendix A: 26 - 36 2017 Airline Rates and Charges Bond Rate Maintenance Covenant 9. Exhibit A: 2017-2021 Capital Improvement Program 37 – 41 Exhibit B: 2017 Projects - Rated

Page 1 of 41

STRATEGIC FRAMEWORK

Vision: To be a model aviation system, providing the highest levels of service to our diverse customers while serving as a gateway to the community, region and world. Mission: To plan and provide for the current and future air transportation needs of the greater Lehigh Valley by constructing, maintaining and operating safe, efficient, modern and attractive airport facilities, and to promote reliable, competitively-priced air transportation services and to fulfill this mission in an efficient and cost-effective manner.

Strategic Focus Areas Core Values Core Competencies

Air Service Integrity Agility

Financial Sustainability Respect Automation

Customer Experience Trust Collaboration

Facilities, Equipment and Infrastructure

Teamwork Diversification

Operational Safety and Security

Service Innovation

Organization Governance, Culture and People

Humility Communications

Strategic Focus Areas – Fundamental elements or program areas vital for achieving long-term vision. Core Values – Framework for day-to-day decision making / Guides our actions and behaviors. Core Competencies – Proficiencies that enable an organization to deliver unique value to customers and stakeholders. Performance Measures – Criteria used for the measurement of the results (outcomes) and efficiency of processes, services or programs. November 1, 2016

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PROJECT / GRANT

MANAGEMENT

ENVIRONMENTAL AFFAIRS &

SUSTAINABILITYPROCUREMENT COMPLIANCE

ASSET / RISK MANAGEMENT

HUMAN RESOURCES /

PAYROLL

CABLE / FIBER

INFRASTRUCTURE

LAN / WAN / WIRELESS

COMMUNICATIONS

DIRECTOR PLANNING &

PROGRAMMING

AIRPORT PLANNING

ENGINEERING DESIGN /

CONSTRUCTION

DIRECTOR INFORMATION

SYSTEMS & TECHNOLOGY

MAINTENANCE / FACILITIES

(CMMS, BUILDING

AUTOMATION)

SAFETY / SECURITY (CCTV,

ACCESS CONTROL, EMERG.

PHONES, BADGING, FCR)

BUSINESS / FINANCE (EMAIL,

INTRANET, DOC. MGMT,

CELL/LAND TELEPHONY)

LANDSIDE SYSTEMS (PAGING

SYSTEM, MUFIDS, CUTE, 2-

WAY RADIO SYSTEM)

AIRSIDE SYSTEMS (FUEL

MONITORING, AIRFIELD

LIGHTING, RING DOWN)

SOLICITORAUDITOR

COMMUNICATIONS / PUBLIC

INFORMATION OFFICEREXECUTIVE ASSISTANT

BOARD OF GOVERNORS

EXECUTIVE DIRECTOR

MAINTENANCE / CUSTODIAL

POLICE / LAW ENFORCEMENT

OPERATIONS CENTER /

DISPATCH

SECURITY ACCESS /

I.D. BADGING

ARFF / EMS

AIRPORT OPERATIONS /

COMPLIANCE

DIRECTOR OPERATIONS &

SAFETY

DIRECTOR COMMERCIAL

SERVICES

PARKING / GROUND

TRANSPORTATION

DIRECTOR BUSINESS

DEVELOPMENT

AIR SERVICE DEVELOPMENT

ADVERTISING / MARKETING

STAKEHOLDER RELATIONS /

COMMUNITY ENGAGEMENT

CUSTOMER EXPERIENCE /

VOLUNTEERS

TERMINAL CONCESSIONS /

PROPERTIES / REAL ESTATE

DEVELOPMENT

DIRECTOR FINANCE &

ADMINISTRATION

FINANCE / ACCOUNTING

BRADEN AIRPARK

FIXED-BASE OPERATOR /

GENERAL AVIATION SERVICES

AIRLINE SUPPORT SERVICES

AIR CARGO SERVICES

PASSENGER SERVICES

QUEEN CITY AIRPORT

PROPOSED 2017Page 3 of 41

2017 2016 Budget Var Budget Var % 2016 Variance Variance %Budget Projection to Projection to Projection Budget to Budget to Budget

A B C D (C/B) E F G (F/E)LVIA OPERATING REVENUES:

Airfield 5,045,920 4,595,044 450,876 9.81% 3,831,325 1,214,595 31.70% Terminal 5,591,971 5,375,740 216,231 4.02% 5,845,703 (253,732) (4.34%) Parking and Roadways 4,586,999 4,456,599 130,400 2.93% 4,703,073 (116,074) (2.47%) Aviation Leased Areas 2,410,861 2,541,407 (130,546) (5.14%) 2,426,054 (15,193) (0.63%) Non-Aviation Leased Areas 404,553 230,913 173,640 75.20% 374,469 30,084 8.03% Ground Handling 4,616,122 2,996,783 1,619,339 54.04% 3,009,780 1,606,342 53.37% Aviation Services 3,743,429 3,483,720 259,709 7.45% 3,306,127 437,302 13.23% Advertising 303,114 208,665 94,449 45.26% 306,000 (2,886) (0.94%) Total Revenues 26,702,969 23,888,871 2,814,098 11.78% 23,802,531 2,900,438 12.19%

COST OF SALES 2,644,823 2,396,129 248,694 10.38% 2,464,443 180,380 7.32% Net Revenue 24,058,146 21,492,742 2,565,404 11.94% 21,338,088 2,720,058 12.75%

LVIA OPERATING EXPENSES:

Airfield 4,031,241 3,694,592 336,649 9.11% 3,425,684 605,557 17.68% Terminal 4,671,773 3,898,662 773,111 19.83% 4,584,078 87,695 1.91% Parking and Roadways 1,177,029 1,123,678 53,351 4.75% 1,184,505 (7,476) (0.63%) Aviation Leased Areas 989,722 929,397 60,325 6.49% 1,067,494 (77,772) (7.29%) Non-Aviation Leased Areas 224,215 130,216 93,999 72.19% 167,973 56,242 33.48% Ground Handling 3,792,334 2,772,037 1,020,297 36.81% 2,126,212 1,666,122 78.36% Aviation Services 822,710 737,323 85,387 11.58% 533,271 289,439 54.28% Advertising 110,184 89,166 21,018 23.57% 208,789 (98,605) (47.23%) Administration 3,134,812 2,564,466 570,346 22.24% 2,522,172 612,640 24.29% Total Expenses 18,954,020 15,939,537 3,014,483 18.91% 15,820,178 3,133,842 19.81%

LVIA Income (Loss) From Operations 5,104,126 5,553,205 (449,079) (8.09%) 5,517,910 (413,784) (7.50%)

OTHER AIRPORTS Queen City Income (Loss) 133,464 192,234 (58,770) (30.57%) 196,563 (63,099) (32.10%) Braden Airpark Income (Loss) (71,806) (79,876) 8,070 (10.10%) 7,051 (78,857) (1118.38%) Events (Loss) (30,000) (69,158) 39,158 (56.62%) 0 (30,000) 0.00% Air Store (Loss) 0 167 (167) (100.00%) 0 0 0.00%Other Airports Inc (Loss) From Operations 31,658 43,367 (11,709) (27.00%) 203,614 (171,956) (84.45%)

All Airports Inc (Loss) From Operations 5,135,784 5,596,572 (460,788) (8.23%) 5,721,524 (585,740) (10.24%)

NON OPERATING INCOME (EXPENSE): Net Interest (32,001) 4,095 (36,096) (881.47%) (121,651) 89,650 (73.69%) Miscellaneous 30,000 41,278 (11,278) (27.32%) 0 30,000 0.00%Total Non Operating Income (Expense) (2,001) 45,373 (47,374) (104.41%) (121,651) 119,650 (98.36%)

Net Income (Loss) Before Depreciation 5,133,783 5,641,945 (508,162) (9.01%) 5,599,873 (466,090) (8.32%)

Bond Fund Expense 0 0 0 0.00% 0 0 0.00%Depreciation (Net of Grants) 4,595,077 4,144,388 450,689 10.87% 4,136,919 458,158 11.07%

LNAA Net Income (Loss) 538,706 1,497,557 (958,851) (64.03%) 1,462,954 (924,248) (63.18%)

Lehigh Northampton Airport AuthorityStatement of Income -- LVI, Queen City & Braden Airports

Preliminary Budget 2017

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LEHIGH-NORTHAMPTON AIRPORT AUTHORITY Lehigh Valley International Airport 2017 BUDGET SUMMARY The 2017 Budgeted Net Income before depreciation is $5,133,783 which is $466,090 (8%) lower than the 2016 Budget and $508,162 (9%) lower than the 2016 Projection. Our debt service ratio is 1.62 which covers our required ratio of 1.57.

2017 OPERATING REVENUE BUDGET

Total 2017 Operating Revenue Budget (including Braden & Queen City) of $27,892,691 is $2,827,165 more than the 2016 budget and $2,824,827 higher than the 2016 year end projection. The 2017 Airline Rates and Charges are included in the budget packet. Please note the Airline Rates and Charges revenue will vary slightly from the LNAA budgeted revenue due to the differences in cost center rollups. Details follow for each cost center.

AIRFIELD LANDING FEES The calculated 2017 landing fee is $4.94, which is $.16 or 3.1% lower than the 2016 budgeted landing fee. Landed weights include the projected increase in air cargo operations for 2017. The calculation of our landing fee is included in the budget package. APRON PARKING FEES The apron parking requirement for 2017 is $.69 per thousand pounds of landed weight. The projected increase from the 2016 budget is the result of the increased apron use from air cargo and commercial traffic. Apron fees are determined based on a percentage of airfield direct and indirect operating expenses. The calculation of our apron fee is included in the budget packet. For 2017, apron fees will be allocated based on landed weight. The previous allocation method was based on the number of landing and the associated aircraft’s wing span. The billing change based on landed weight is more consistent with the industry standard for billing apron fees.

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TERMINAL RENTS: AIRLINES The 2017 terminal rental rate is calculated at $.12 higher than the 2015 rates. On January 1, 2016, budgeted rates were reduced 5%. Effective January 1, 2017 the rates will be increased 5.5%. The 2017 rate will be $70.86/sq. ft. Additionally, the rate per turn will increase 3.7% to $1,115.86/per turn. The calculations of the terminal rental rate and the per turn fee are included in the budget packet. CONCESSION FEES: Rental car and restaurant/newsstand concession fee revenue was budgeted consistent with the 2016 projection. Although we are estimating a 3% increase in enplaned passengers, revenues were not increased for the rental car concession due to the additional construction work being done on the terminal in early 2017.

PARKING AND ROADWAYS

PARKING LOT FEES Parking revenue for 2017 is budgeted based on projected increase of enplanements of 3% above the 2016 projection or 2.5% below 2016 budgets. The reduction from the 2016 budget reflects the latest trend including the addition of transportation network companies Uber and Lyft.

AVIATION AND NON-AVIATION LEASED AREAS

HANGAR RENTS, BUILDINGS, LAND RENTS Overall aviation rents were budgeted slightly lower than the 2016 budget primarily based on the reduction in T-Hangar and land rentals. Building rents reflect projected 2017 full occupancy and the associated CPI increase in the current contracts.

GROUND HANDLING AIRCRAFT HANDLING Ground handling revenue will increase by 54% from 2016 projected year-end numbers and 53% higher than the 2016 budget. The additional revenue is due to the increased activity projected for the cargo operation.

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AVIATION SERVICE GROUP FUEL SALES The 2017 budget projected activity in gross fuel sales reflect increased activity and fuel prices. The 2017 budget is 6% higher than the 2016 projection and 8% higher than the 2016 budget. Into-Plane fees were increased 9% higher than the 2016 projection and 12% higher than the 2016 budget based on the additional activity associated with air cargo.

ADVERTISNG ADVERTISING In 2016, the airport brought advertising in-house and advertising was moved to its own cost center. The increase in projected revenue for 2017 reflects the momentum of the airport’s advertising efforts.

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A B C D (C/B) E F G (F/E)OPERATING REVENUES: Airfield: Landing Fees 4,468,812 4,052,625 416,187 10.27% 3,387,965 1,080,847 31.90% Apron Parking Fees 487,047 418,858 68,189 16.28% 319,800 167,247 52.30% Land Rents 90,060 123,560 (33,500) (27.11%) 123,560 (33,500) (27.11%) Total Airfield Fees 5,045,919 4,595,043 450,876 9.81% 3,831,325 1,214,594 31.70%

Terminal: Rent - Airlines 3,421,019 3,229,148 191,871 5.94% 3,532,304 (111,285) (3.15%) Rent - Concession & Other 518,421 471,976 46,445 9.84% 469,443 48,978 10.43% Concession Fee - Rental Cars 1,374,405 1,392,267 (17,862) (1.28%) 1,455,018 (80,613) (5.54%) Concession Fee - Restaurant/Newsstand 220,605 217,336 3,269 1.50% 237,150 (16,545) (6.98%) Concession Fee - Other 27,121 35,003 (7,882) (22.52%) 116,961 (89,840) (76.81%) Utility Fees & Other 30,399 30,009 390 1.30% 34,828 (4,429) (12.72%) Total Terminal Rents 5,591,970 5,375,739 216,231 4.02% 5,845,704 (253,734) (4.34%)

Parking and Roadways 4,586,999 4,456,599 130,400 2.93% 4,703,073 (116,074) (2.47%)

Aviation Leased Areas: Hangar No. 1 Rent 56,738 56,738 0 0.00% 0 56,738 0.00% Hangar No. 2 Rent 33,995 32,398 1,597 4.93% 27,720 6,275 22.64% Hangar No. 3 Rent 262,589 257,293 5,296 2.06% 258,071 4,518 1.75% Hangar No. 5 Rent 21,112 20,497 615 3.00% 20,496 616 3.01% Hangar No. 7 Rent 276,857 276,356 501 0.18% 313,344 (36,487) (11.64%) Hangar No. 8 Rent 188,007 192,156 (4,149) (2.16%) 231,156 (43,149) (18.67%) Hangar No. 9 Rent 751,848 735,019 16,829 2.29% 739,011 12,837 1.74% Hangar No. 10 Rent 491,989 494,461 (2,472) (0.50%) 473,364 18,625 3.93% T-Hangars 191,610 184,922 6,688 3.62% 201,444 (9,834) (4.88%) Air Cargo Building & Land Rents 100,870 256,129 (155,259) (60.62%) 123,432 (22,562) (18.28%) Ramp, Gatecard and Other Income 35,246 35,439 (193) (0.54%) 38,016 (2,770) (7.29%) Total Aviation Leased Areas 2,410,861 2,541,408 (130,547) (5.14%) 2,426,054 (15,193) (0.63%)

Non-Aviation Leased Areas: Building Rents 404,553 230,913 173,640 75.20% 374,469 30,084 8.03% Total Rents 404,553 230,913 173,640 75.20% 374,469 30,084 8.03%

Ground Handling and Other 4,616,122 2,996,783 1,619,339 54.04% 3,009,780 1,606,342 53.37%

Aviation Services: Gross Fuel Sales 1,361,598 1,281,925 79,673 6.22% 1,259,711 101,887 8.09% Landing Fees 145,588 132,352 13,236 10.00% - 145,588 0.00% Into Plane Fees 2,030,969 1,862,969 168,000 9.02% 1,807,650 223,319 12.35% Hangar & Ramp Rentals 200,927 200,927 - 0.00% 238,560 (37,633) (15.78%) Miscellaneous Income 4,349 5,547 (1,198) (21.60%) 206 4,143 2011.17% Total Aviation Services 3,743,431 3,483,720 259,711 7.45% 3,306,127 437,304 13.23%

Advertising 303,114 208,665 94,449 45.26% 306,000 (2,886) (0.94%)

Total Operating Revenue 26,702,969 23,888,870 2,814,099 11.78% 23,802,532 2,900,437 12.19%

Cost of Sales 2,644,823 2,396,129 248,694 10.38% 2,464,443 180,380 7.32%Net Operating Revenue 24,058,146 21,492,741 2,565,405 11.94% 21,338,089 2,720,057 12.75%

Lehigh Northampton Airport Authority2017 Statement of Operating Revenues - LVIA


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Lehigh-Northampton Airport Authority2017/2016 LVIA Revenue Budgets

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2017 2016

Page 9 of 41

Airlines, $5,045,920, 19%

Terminal, $5,591,971 , 21%

Parking and Roadways,

$4,586,999 , 17%

Aviation/Non-Aviation Leased, $2,815,414 , 11%

Ground Handling, $4,616,122 , 17%

Aviation Services, $3,743,429 , 14%

Advertising, $303,114 , 1%

Lehigh-Northampton Airport Authority 2017 Revenue Sources

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0.6

1.61

2.23

3.16

2.74

2.07

2

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1.33

2

3.19

4.13 4.13

0 0 0 0

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0.5

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1.5

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2.5

3

3.5

4

4.5

Aver

age

Carg

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ight

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Average Cargo Flights Per Day By Month

Flight/Day 2016 Budget 2017 Budget flights/day

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LEHIGH-NORTHAMPTON AIRPORT AUTHORITY Lehigh Valley International Airport

2017 OPERATING EXPENSE BUDGET

Total 2017 Operating Expense Budget (including Braden & Queen City) of $19,398,638 is up $3,145,283 from the 2016 Budget and up $3,074,975 from the year end projection. The changes in some of the major expense categories are detailed below.

SALARIES AND WAGES Salaries and wages reflect a 19% increase over the year-end projection and a 22% increase from the 2016 budget. The increase reflects several adjustments: 1. Ground Handling consistent with the (4) projected daily flights for the cargo

operation in 2017. 2. 20% increase in FTEs versus 2016 budget. 3. Increases in wages to reflect market competiveness and recent legislative changes. 4. Assumed 3% increase in salary and wages for the Teamsters Union on July 1, 2017.

The 3% is an estimate; the current CBA (collective bargaining agreement) ends June 30, 2017.

5. Salary and wage increases of 3.5% for Police on January 1, 2017 and 3.5% increase for Aircraft, Rescue and Firefighting (ARFF) on September 1, 2017; these numbers are per their current CBAs.

6. Non-Union includes a 2.5% increase effective January 1, 2017 and an additional 2.5% merit pool for high performers.

EMPLOYEE BENEFITS 2017 Benefits are budgeted at a 25% increase from the 2016 projection and a 9% increase to the 2016 budget. The main contributors were: 1. Workman’s compensation contribution of 7.2% of payroll. 2. Pension benefits estimated at 7% of all full time salaries. 3. 20% increase in FTEs versus 2016 budget. 4. An 8% increase in medical insurance premiums. 5. Self- insured unemployment claims estimated at 2.5% of salaries. 6. Employee contributions were increased to 6% in 2017 for non-union employees.

The ARFF and Police contributions were increased with their latest CBA. We assumed the Teamsters would contribute similar to the other Unions at the commencement of their new CBA.

7. A rebate of $100,000 from the 2016 medical self-insurance.

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PROFESSIONAL SERVICES The 2017 budget reflects a 11% increase versus 2016 year-end projections and a 23% increase to the 2016 budget. The increase of professional services is necessary with the Multimodal and other infrastructure improvements in 2017. Additionally, the Authority is planning to conduct an employee compensation analysis to help create a strategic human resource plan for the coming years. LEGAL SERVICES The 2017 Budget reflects a 16% increase from the 2016 year-end projection and a 11% decrease to the 2016 budget. Rates reflect the reduction in legal services with the conclusion of the Willow Brook Farms (WBF) litigation. AUDIT AND FINANCIAL SERVICES The 2017 Budget reflects a 3% decrease from the 2016 year-end projection and a 2% decrease from the 2016 budget. CONTRACT SERVICES The contract services 2017 budget has been increased 20% from the 2016 projection and 50% increase from the 2016 budget. The majority of the increase is due to outside consulting work necessary for environmental compliance, the Multimodal project, other 2017 capital projects, and an average number of snow events for 2017. ADVERTISING EXPENSE The advertising budget is for external affairs, general promotion of the airport and new expenses associated with in house advertising. The 2017 budget is 61% higher than the 2016 projection and 66% higher than the 2016 budget. The increase is consistent with the additional projected advertising revenue. TRAINING AND SEMINARS The training and seminars budget reflects a 69% increase versus the 2016 year-end projection and 16% reduction over the 2016 budget. BUSINESS AND TRAVEL EXPENSES The business and travel expense budget reflect a 48% increase versus the 2016 year- end projections and 4% higher than the 2016 budget. HOSPITALITY The hospitality budget reflects a 33% increase versus the 2016 year-end projection and a 26% in the 2016 budget. The hospitality account was added in 2016 to track the care and welfare of non-staff members. EQUIPMENT RENTAL Equipment rental costs were increased significantly in 2017 to meet the new contract requirements of our cargo operations. The 2017 budget is 35% higher than the year end projection and 196% increase over the 2016 budget.

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MATERIALS & SUPPLIES Material and supplies increased 22% from the 2016 year-end projections and decreased 19% from the 2016 budget. Material and supplies are directly impacted by the number of snow events during the year. In 2016, there was only one significant snow storm. MAINTENANCE & REPAIRS Maintenance & Repairs budget has decreased 5% from the 2016 year-end projections and increased 16% from the 2016 budget. Maintenance and repair costs remain high due to age of the Authority’s equipment. The two largest cost center budgets are airfield and terminal maintenance. In the airfield, marking paint and lighting repairs are major items. In the terminal, infrastructure repairs are the major items. UTILITIES Overall heating gas and oil, electricity, and water were budgeted at approximately an 6% increase versus the 2016 year-end projection. INSURANCE The 2017 budget reflects increases in police, public officials, crime, and automobile insurance. PAYMENT IN LIEU OF TAXES Required payments to Catasauqua School District and Hanover Township equal 10% of our parking revenue and 2017 is budgeted accordingly. INTEREST EXPENSE Interest expense reflects a 56K over 2016 year end projections. The additional interest is due to the hangar construction loan expected to be closed on the next few months. CREDIT CARD FEES Credit card fees are incurred on sales of fuel and other FBO services, as well as parking lot revenue and will vary proportionately with the revenue.

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A B C D (C/B) E F G (F/E)OPERATING EXPENSES:

Salaries and Wages 7,812,161 6,568,371 1,243,790 18.94% 6,401,547 1,410,614 22.04% Payroll Taxes 597,630 502,110 95,520 19.02% 489,718 107,912 22.04% Employee Benefits 3,241,352 2,595,503 645,849 24.88% 2,978,151 263,201 8.84% Subtotal 11,651,143 9,665,984 1,985,159 20.54% 9,869,416 1,781,727 18.05% Professional Services 437,060 392,880 44,180 11.25% 355,571 81,489 22.92% Legal Services 181,000 156,420 24,580 15.71% 204,120 (23,120) (11.33%) Audit and Financial Services 110,000 113,773 (3,773) (3.32%) 108,000 2,000 1.85% Public Relations 46,500 35,877 10,623 29.61% 53,500 (7,000) (13.08%) Contract Services 852,165 708,128 144,037 20.34% 569,689 282,476 49.58% Advertising Expense 327,614 203,642 123,972 60.88% 197,240 130,374 66.10% Printing 18,910 12,864 6,046 47.00% 12,850 6,060 47.16% Postage 5,340 3,687 1,653 44.83% 5,935 (595) (10.03%) Dues and Subscriptions 104,465 83,110 21,355 25.69% 76,461 28,004 36.63% Office Supplies 51,290 47,177 4,113 8.72% 41,881 9,409 22.47% Telephone 103,238 89,053 14,185 15.93% 90,177 13,061 14.48% Training and Seminars 113,455 67,170 46,285 68.91% 135,450 (21,995) (16.24%) Business and Travel Related 84,008 56,548 27,460 48.56% 80,591 3,417 4.24% Hospitality 25,325 18,987 6,338 33.38% 20,148 5,177 25.69% Equipment Rental 1,313,330 972,814 340,516 35.00% 443,235 870,095 196.31% Materials & Supplies 477,196 391,293 85,903 21.95% 588,141 (110,945) (18.86%) Maintenance Repairs 724,286 761,030 (36,744) (4.83%) 623,416 100,870 16.18% Heating Gas and Oil 345,096 306,855 38,241 12.46% 447,748 (102,652) (22.93%) Electricity 648,667 615,897 32,770 5.32% 615,908 32,759 5.32% Water 98,228 91,654 6,574 7.17% 95,914 2,314 2.41% Refuse Collection 44,069 44,086 (17) (0.04%) 41,340 2,729 6.60% Uniforms 60,310 38,437 21,873 56.91% 59,299 1,011 1.70% Insurance 420,156 375,977 44,179 11.75% 371,621 48,535 13.06% Real Estate Taxes 108,949 108,950 (1) (0.00%) 90,618 18,331 20.23% Payment in Lieu of Taxes 448,300 437,886 10,414 2.38% 470,158 (21,858) (4.65%) Interest Expense * 74,001 17,795 56,206 315.85% 121,651 (47,650) (39.17%) Credit Card Fees 157,199 143,777 13,422 9.34% 142,400 14,799 10.39% Bad Debt Expense 0 0 0 0.00% 0 0 0.00% Miscellaneous 40,630 31,913 8,717 27.31% 44,340 (3,710) (8.37%)

Total Operating Expenses 19,071,930 15,993,664 3,078,266 19.25% 15,976,818 3,095,112 19.37%

Allocated to QC (25,482) (21,085) (4,397) 20.85% (20,306) (5,176) 25.49% Allocated to Braden (18,426) (15,246) (3,180) 20.86% (14,683) (3,743) 25.49%

Total Operating Expenses after Allocation 19,028,022 15,957,333 3,070,689 19.24% 15,941,829 3,086,193 19.36%

*Interest Expense is included in Net Interest under Non-operating Income (Expense) on the Summary

Lehigh Northampton Airport Authority 2017 Budgeted Statement of Operating Expenses - LVIA


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Lehigh-Northampton Airport Authority2017/2016 Expense Budgets

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

2017 2016

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Queen City Airport and Braden Airpark Queen City Airport We assumed revenue to be flat versus the 2016 projection and a (4%) decrease from the 2016 budget. Fuel costs expect to go up 5% versus the 2016 projection. We improved the allocation of the labor cost between LVIA, Queen City, and Braden Airpark. The 2017 budget includes an average cost for snow events and an increase in infrastructure. Braden Airpark We assumed revenue to increase 6% versus the 2016 projection and a (14%) decrease from the 2016 budget. Fuel costs expect to go up 5% versus the 2016 projection. We improved the allocation of the labor cost between LVIA, Queen City, and Braden Airpark. The 2017 budget includes an average cost for snow events and an increase in infrastructure.

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A B C D (C/B) E F G (F/E)

Revenue:

Hanger & Ramp Rentals 472,983 472,808 175 0.04% 453,912 19,071 4.20%Fuel Sales-FBO 560,407 558,700 1,707 0.31% 623,857 (63,450) (10.17%)Pilot Supplies Sales 16 16 0 0.00% 2,221 (2,205) (99.28%)Miscellaneous Income 750 750 0 0.00% 2,221 (1,471) (66.23%)

Total Revenue 1,034,156 1,032,274 1,882 0.18% 1,082,211 (48,055) (4.44%)

Cost of Sales: Fuel Cost 342,410 326,103 16,307 5.00% 375,112 (32,702) (8.72%) Hanger Parts & Goods Sold 1,572 1,362 210 15.42% 2,484 (912) (36.71%) Labor costs 289,632 280,585 9,047 3.22% 276,497 13,135 4.75%

Total Cost of Sales 633,614 608,050 25,564 4.20% 654,093 (20,479) (3.13%)

Net Operating Revenue 400,542 424,224 (23,682) (5.58%) 428,118 (27,576) (6.44%)

Operating Expenses:

Salaries & Wages 50,435 38,772 11,663 30.08% 24,782 25,653 103.51%Payroll Taxes 3,858 2,966 892 30.07% 1,896 1,962 103.48%Employee Benefits 24,631 7,863 16,768 213.25% 13,732 10,899 79.37%

Subtotal 78,924 49,601 29,323 59.12% 40,410 38,514 95.31%

Miscellaneous Professional Fee 4,280 12,615 (8,335) (66.07%) 300 3,980 1326.67%Contract Services 12,830 6,377 6,453 101.19% 33,050 (20,220) (61.18%)Advertising Expense 300 117 183 156.41% 300 0 0.00%Dues & Subscriptions P&E 0 200 (200) (100.00%) 400 (400) (100.00%)Office Expenses P&E 600 578 22 3.81% 500 100 20.00%Telephone Expense P&E 3,558 3,368 190 5.64% 7,750 (4,192) (54.09%)Training & Seminars P&E 1,450 37 1,413 3818.92% 0 1,450 0.00%Travel & Business Expenses P&E 1,550 110 1,440 1309.09% 280 1,270 453.57%Hospitality 950 417 533 127.82% 70 880 1257.14%Equipment Rental P&E 14,316 9,718 4,598 47.31% 2,785 11,531 414.04%Materials & Supplies P&E 18,895 17,086 1,809 10.59% 37,500 (18,605) (49.61%)Maintenance & Repairs 51,397 61,111 (9,714) (15.90%) 33,500 17,897 53.42%Utilities-Heat 9,084 9,528 (444) (4.66%) 11,498 (2,414) (20.99%)Utilities-Light & Power 22,967 24,130 (1,163) (4.82%) 25,125 (2,158) (8.59%)Utilities-Water 1,216 1,104 112 10.14% 682 534 78.30%Uniform Purchase & Expense 3,280 250 3,030 1212.00% 1,500 1,780 118.67%Insurance 0 50 (50) (100.00%) 0 0 0.00%Credit Card Fees 15,599 14,223 1,376 9.67% 15,199 400 2.63%Bad Debt Expense 0 0 0 0.00% 0 0 0.00%Miscellaneous Expenses P&E 400 283 117 41.34% 400 0 0.00%Allocated 25,482 21,085 4,397 20.85% 20,306 5,176 25.49%

Total Operating Expenses 267,078 231,988 35,090 15.13% 231,555 35,523 15.34%

Net Income (Loss) from Operations 133,464 192,236 (58,772) (30.57%) 196,563 (63,099) (32.10%)

NON-OPERATING COSTS:

Depreciation 98,322 93,640 4,682 5.00% 113,883 (15,561) (13.66%) Total Non-Operating Costs 98,322 93,640 4,682 5.00% 113,883 (15,561) (13.66%)

Net Income after depreciation 35,142 98,596 (63,454) (64.36%) 82,680 (47,538) (57.50%)

Lehigh Northampton Airport AuthorityQueen City


Page 18 of 41


A B C D (C/B) E F G (F/E)

Revenue:

Hanger & Ramp Rentals 102,182 100,003 2,179 2.18% 113,744 (11,562) (10.16%)Fuel Sales-FBO 53,384 46,716 6,668 14.27% 67,040 (13,656) (20.37%)

Total Revenue 155,566 146,719 8,847 6.03% 180,784 (25,218) (13.95%)

Cost of Sales: Fuel Cost 36,121 34,400 1,721 5.00% 42,851 (6,730) (15.71%) Hanger Parts & Goods Sold 144 141 3 2.13% 0 144 0.00% Labor costs 87,569 57,713 29,856 51.73% 50,912 36,657 72.00%

Total Cost of Sales 123,834 92,254 31,580 34.23% 93,763 30,071 32.07%

Net Operating Revenue 31,732 54,465 (22,733) (41.74%) 87,021 (55,289) (63.54%)

Operating Expenses:

Salaries & Wages 11,502 10,110 1,392 13.77% 6,061 5,441 89.77%Payroll Taxes 880 773 107 13.84% 464 416 89.66%Employee Benefits 5,618 2,820 2,798 99.22% 3,359 2,259 67.25%

Subtotal 18,000 13,703 4,297 31.36% 9,884 8,116 82.11%

Miscellaneous Professional Fee 3,240 51,496 (48,256) (93.71%) 0 3,240 0.00%Professional Fees-Public Rel. 500 0 500 0.00% 0 500 0.00%Contract Services 2,560 750 1,810 241.33% 1,500 1,060 70.67%Advertising Expense 0 0 0 0.00% 0 0 0.00%Office Expenses P&E 240 100 140 140.00% 300 (60) (20.00%)Telephone Expense P&E 2,928 3,005 (77) (2.56%) 2,808 120 4.27%Training & Seminars P&E 300 259 41 15.83% 500 (200) (40.00%)Travel & Business Expenses P&E 0 31 (31) (100.00%) 0 0 0.00%Hospitality 600 0 600 0.00% 0 600 0.00%Equipment Rental P&E 2,400 2,323 77 3.31% 2,285 115 5.03%Materials & Supplies P&E 10,500 4,798 5,702 118.84% 11,000 (500) (4.55%)Maintenance & Repairs 26,200 19,804 6,396 32.30% 15,000 11,200 74.67%Utilities-Light & Power 7,423 8,073 (650) (8.05%) 14,132 (6,709) (47.47%)Utilities-Water 1,668 2,202 (534) (24.25%) 1,035 633 61.16%Refuse Services 2,064 1,963 101 5.15% 1,392 672 48.28%Uniform Purchase & Expense 1,650 341 1,309 383.87% 500 1,150 230.00%Insurance 0 375 (375) (100.00%) 0 0 0.00%Credit Card Fees 1,639 1,310 329 25.11% 1,742 (103) (5.91%)Bad Debt Expense 0 0 0 0.00% 0 0 0.00%Miscellaneous Expenses P&E 3,200 8,563 (5,363) (62.63%) 3,210 (10) (0.31%)Allocated 18,426 15,246 3,180 20.86% 14,683 3,743 25.49%

Total Operating Expenses 103,538 134,342 (30,804) (22.93%) 79,971 23,567 29.47%

Net Income (Loss) from Operations (71,806) (79,877) 8,071 (10.10%) 7,050 (78,856) (1118.52%)

NON-OPERATING COSTS: Debt Service 127,772 127,772 0 0.00% 127,772 0 0.00%

Depreciation 71,280 67,886 3,394 5.00% 23,235 48,045 206.78% Total Non-Operating Costs 199,052 195,658 3,394 1.73% 23,235 48,045 206.78%

Net Income after depreciation & debt service (270,858) (275,535) 4,677 (1.70%) (16,185) (126,901) 784.07%

Lehigh Northampton Airport AuthorityBraden Airpark


Page 19 of 41

Department 2017 Budget (A) Current (B) *Variance

(A-B)

% Variance (A vs. B)

Planning 3.0 2.0 1.0 50%Maintenance (A) 20.8 16.8 4.0 24%Maintenance (L) 13.5 11.1 2.4 21%Custodial 12.9 12.7 0.2 1%Police 14.4 12.4 2.0 16%ARFF** 8.0 8.9 -0.9 -10%Operations Center 6.0 6.6 -0.6 -9%Operations Admin. 5.7 5.5 0.2 4%Operations Officers 5.6 4.2 1.4 33%IT 5.0 4.0 1.0 25%Aviation Services- QC 6.6 5.9 0.7 12%Aviation Services- FBO 25.3 24.0 1.3 5%Aviation Services-LV 12.4 10.2 2.3 22%Business Development 1.6 1.0 0.6 60%Aviation Services-Braden 2.2 2.0 0.2 10%Parking 6.5 5.5 1.0 18%Passenger Services 9.8 11.2 -1.4 -13%Cargo 43.4 44.8 -1.4 -3%Properties 2.1 1.0 1.1 110%Executive Board 4.1 3.0 1.1 37%HR 1.8 1.9 -0.1 -5%Finance 7.7 7.2 0.5 7%Marketing 1.0 1.1 -0.1 -9%Advertisng 0.5 0.5 0.0 0%Customer Experience 3.1 3.2 -0.1 -3%Grand Total 223.0 206.8 16.3 8%

*Current Based on last two week pay period which ended 11/8/16**FTE Based on 56 Hours for ARFF

Full Time Equivalents (FTEs) by Department

Page 20 of 41

Insights on Additions to Personnel

Overall

The Authority is adding an additional 38 (20%) full time equivalents (FTEs) versus the 2016 budget and 16 (8%) FTEs versus current staffing. The majority of the increase in staffing is attributable to the increase in air cargo operations. The cargo operation not only requires direct labor support but indirect support through increased police, operations, and administration.

With increased attention on developing new tactics for earning revenue and a focus shifted to tackling large scale projects, additional staff is required for maintaining the highest quality of day to day operations at Lehigh Valley International Airport. The Authority will look for efficiencies by automating many of its current tasks. An increase in staff is necessary over the next few years to bridge the gap of technology and infrastructure development which was lacking due to the recession and many years of litigation.

Aviation Services-FBO 1 FT Fuel Farm Specialist – Required based on increase in weekly fuel loads. 2 PT Fuelers- Required to support the cargo operation. Aviation Services-LV 2 FTEs - Required to support the additional Allegiant activity. Executive Board 1 FT Special Projects Coordinator- required to coordinate, manage and/or support special events, activities, and studies including determining the impact of regulatory requirements. Information Technology 1 FT Tech Support – Required to handle upgrades of new software, troubleshooting and provide overall depth to a previously understaffed department. Maintenance Airside 1 FT Supervisor - Required to manage airfield maintenance personnel, maintenance shop purchasing and inventory. 1 FT Mechanic - Addition of engine mechanic to support Air Cargo Ground Service Equipment (24/7). 1 FT Laborer - Addition of entry level laborer to increase support of airfield snow removal & grass cutting. 1 PT Mechanic - Addition of engine mechanic to support Air Cargo Ground Service Equipment (24/7).

Page 21 of 41

Maintenance Landside 1 FT Supervisor - Required to manage landside maintenance and custodial personnel. 1 FT Painter - Addition of ongoing painting needs of ABE. Operations Officers 2 PT Operations Officers - Required to increase daily Operations coverage from 20hr/day to 24hr/day to support Air Cargo. Parking 1 FTE - Required to increase staffing up to the 2017 budget levels Planning 1 FT Project Manager/Engineer – Required to coordinate, manage, and review capital projects and initiatives. This person will also review engineering documents submitted by others to ensure compliance and conformity to the Airport Authority standards. Police 2 FT Police Officers - Required to increase daily coverage of airport mainly to support increased Ground Handling at night from Air Cargo Operations. 1 PT Police Officers - Required to increase daily coverage of airport mainly to support increased Ground Handling at night from Air Cargo Operations . Properties 1 FT Properties Assistant - Required to work on lease administration and address tenant issues. The properties assistant will free up the Manager to spend more time working on business development efforts while adding needed depth to the department. . .

Page 22 of 41

a Year 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017b Month JAN FEB MAR APRIL MAY JUNE JULY AUGUST SEPT OCT NOV DEC Totals

c Beginning Cash 10,200,000$ 10,230,203$ 9,328,975$ 8,209,366$ 7,804,493$ 7,000,869$ 5,939,541$ 6,622,628$ 6,905,462$ 6,667,734$ 6,585,547$ 6,227,568$

1 LNAA Total Operating Revenues 2,061,907$ 2,116,584$ 2,260,039$ 2,329,731$ 2,234,130$ 2,245,390$ 2,321,649$ 2,362,344$ 2,158,887$ 2,234,773$ 2,209,350$ 2,168,182$ 26,702,966$ 2 LNAA Oper. Expenses & COS Labor $ (1,646,783) $ (1,849,360) $ (1,823,429) $ (1,719,233) $ (1,627,493) $ (1,798,418) $ (1,792,102) $ (1,699,955) $ (1,782,047) $ (2,068,645) $(1,766,321) $ (2,025,054) (21,598,840)$ 3 Fuel Inventory Purchases (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ 4 Queen City Income (Loss) $ 10,150 $ 11,976 $ 123 $ 2,526 $ 12,944 $ 11,758 $ 19,172 $ 11,788 $ 14,096 $ 11,054 $ 14,224 $ 13,654 133,465$ 5 Braden Airpark Income (Loss) $ (4,899) $ (6,079) $ (8,828) $ (6,008) $ (4,985) $ (7,186) $ (4,413) $ (4,409) $ (7,751) $ (5,887) $ (4,460) $ (6,901) (71,806)$ 6 Event (Loss) $ - $ - $ - $ - $ - $ (15,000) $ - $ - $ - $ - $ - $ (15,000) (30,000)$ 7 Net Interest $ (69) $ (30,863) $ (63) $ (61) $ (30,468) $ (55) $ (53) $ (30,068) $ (81) $ (79) $ (29,702) $ (89) (121,651)$ 8 Debt Service (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (3,303,132)$ 9 TD Bank Loan Payments (55,580)$ (55,580)$ (55,580)$ (55,580)$ (3,900)$ (226,220)$ 10 Transfers from PFC to Operating 200,000$ 200,000$ 400,000$ 100,000$ 100,000$ 200,000$ 1,200,000$ 11 CFC Funds 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 300,000$ 12 Bond Project Funds -$

13

Funds Available before Capital Purchases, Lease Payments, & Grant Receipts 10,346,465$ 9,998,620$ 9,282,976$ 8,542,480$ 7,966,460$ 7,419,097$ 6,065,533$ 6,944,067$ 6,870,305$ 6,520,689$ 6,590,377$ 6,144,099$

CIP Cash Flow Items:14 Lease Payments (55,337)$ (148,720)$ (72,685)$ (92,762)$ (191,491)$ (115,456)$ (125,805)$ (219,505)$ (143,471)$ (166,042)$ (258,709)$ (182,676)$ (1,772,659)$ 15 Capital Purchases/Local Contributions (1,121,625)$ (1,121,625)$ (1,121,625)$ (1,121,625)$ (1,005,500)$ (1,885,500)$ (340,500)$ (340,500)$ (290,500)$ (290,500)$ (290,500)$ (269,041)$ (9,199,041)$ 16 FAA/PA Grant Receipts 1,060,700$ 600,700$ 120,700$ 476,400$ 231,400$ 521,400$ 1,023,400$ 521,400$ 231,400$ 521,400$ 186,400$ 476,400$ 5,971,700$ 17 Ending Cash 10,230,203$ 9,328,975$ 8,209,366$ 7,804,493$ 7,000,869$ 5,939,541$ 6,622,628$ 6,905,462$ 6,667,734$ 6,585,547$ 6,227,568$ 6,168,782$ (5,000,000)$

18 Required Bond Cash Reserve 3,679,000$ 3,679,000$ 3,679,000$ 3,679,000$ 3,679,000$ 3,679,000$ 3,679,000$ 3,679,000$ 3,679,000$ 3,679,000$ 3,679,000$ 3,679,000$

19 Restricted for AIP Use Only 2,235,000$ 2,235,000$ 2,235,000$ 2,235,000$ 2,235,000$ 2,235,000$ 2,235,000$ 2,235,000$ 2,235,000$ 2,235,000$ 2,235,000$ 2,235,000$

20 Unrestricted Cash (15-14) 4,316,203$ 3,414,975$ 2,295,366$ 1,890,493$ 1,086,869$ 25,541$ 708,628$ 991,462$ 753,734$ 671,547$ 313,568$ 254,782$

Notes to Items:8 Debt Service with BMO Harris. 9 Final Payment on TD Terminal Loan is $3,900 in May 2017.14 Lease Payments include capital items for the Constellation Energy Project and use of the Tetra Lease Line of Credit.15 Capital Purchases updated to include 2017 Capital Improvement Plan (CIP).18 Bond Cash Requirement must be met on 12/31 of every year; Bond Cash Reserve = 1/6 of 2017 Budgeted Expenses + $500,000.19 Approximately $2,235,000 of Funds Available are reserved for federally approved AIP projects.

Other Notes:A Bank Lines of Credit are not shown on exhibit but may be potential sources of Cash.B Bond Construction Project Fund has approximate $4.2 million balance. If Project Funds are used, they will be shown on line #12. C Restricted AIP Funds & Residual Bond Project Funds will be used to offset applicable Capital projects.D Net Changes to Receivables and Payables assumed to be zero.E Net LNAA cash used for capital is $5,000,000 marked in orange

Lehigh-Northampton Airport Authority2017 Budgeted Month by Month Cash Flow Projection

Page 23 of 41

CIP Funds (not leased),

$3,227,341 , 38%

Bond Debt Service,

$3,303,132 , 39%

Capital Lease Payments,

$1,772,659 , 21%

TD Bank Loan, $226,220 , 2%

Lehigh-Northampton Airport Authority 2017 Uses of Cash

Total Capital Resources: $5,000,000

Page 24 of 41

Net Revenue, $5,133,783 , 41%

PFC, $1,200,000 , 10%

EST. 2017 FAA/PA Grant Receipts,

$5,971,700 , 47%

CFC, $300,000 , 2%

Lehigh-Northampton Airport Authority 2017 Available Cash

Total Available Cash $12,605,483

Page 25 of 41


Braden Airpark

APPENDIX A

Page 26 of 41

LEHIGH-NORTHAMPTON AIRPORT AUTHORITY

2017 Airline Rates and Charges

Lehigh Valley International Airport

Provided by Unison Consulting, Inc.

Page 27 of 41

Budget Budget

Operating Expenses 2016 2017

Salaries and Wages 6,432,390$ 7,874,098$

Payroll Taxes 521,467 602,368

Employee Benefits 3,111,700 3,271,601

Subtotal ‐ Personnel Costs 10,065,557$ 11,748,067$

Professional Services 355,871 445,080

Legal Services 204,120 181,000

Audit and Financial Services 108,000 110,000

Public Relations 53,500 46,500

Contract Services 604,239 867,555

Advertising Expense 197,540 327,914

Printing 12,850 18,910

Postage 5,935 5,340

Dues and Subscriptions 76,861 104,465

Office Supplies 42,681 52,130

Telephone 100,735 109,724

Training and Seminars 135,950 115,205

Business and Travel Related 80,941 85,558

Hospitality ‐ 26,875

Equipment Rental 448,305 1,330,046

Materials & Supplies 636,641 506,591

Maintenance Repairs 671,916 801,883

Heating Gas & Oil 459,246 354,180

Electricity 655,165 679,057

Water 97,631 101,112

Refuse Collection 42,732 46,133

Uniforms 61,299 65,240

Insurance 371,621 420,156

Real Estate Taxes 90,618 108,949

Payment in Lieu of Taxes 470,158 448,300

Interest Expense 121,651 74,001

Credit Card Fees 159,341 174,437

Bad Debt Expense ‐ ‐

Miscellaneous 82,937 44,230

Subtotal Other Operating Expenses 6,348,484$ 7,650,571$

Total Operating Expenses 16,414,041$ 19,398,638$

COST OF SALES ‐ NOT ALLOCATED

Cost of Sales ‐ Aviation Services 2,294,050 2,644,823

Cost of Sales ‐ GA Airports 747,856 757,448

Subtotal Cost of Sales 3,041,906$ 3,402,271$

Total Operating Expenses and COS 19,455,947$ 22,800,909$

Total Operating Expense Allocation

Airfield 3,488,759$ 4,031,241$

Terminal 4,693,880 4,671,773

Parking and Roadways 1,188,458 1,177,029

Aviation Leased Areas 1,098,128 989,722

Non‐Aviation Leased Areas 170,062 224,215

Aviation Services 546,598 822,710

Ground Handling 2,180,421 3,792,334

GA Airports 313,952 370,616

Advertising 209,636 110,184

Administration 2,524,148 3,208,814

Total Operating Expenses 16,414,041$ 19,398,638$

Source: Authority Management.

TABLE 1

LEHIGH‐NORTHAMPTON AIRPORT AUTHORITY

LEHIGH VALLEY AIRPORT SYSTEM

OPERATING EXPENSES

Page 28 of 41

Budget Budget

OPERATING REVENUE 2016 2017

Airfield:

Landing Fees 3,354,238$ 4,199,990$

Apron Parking Fees 413,351 487,047

Land Rentals 123,560 90,060

Security 56,644 63,634

Other 200,000 205,000

Total Airfield Fees 4,147,792$ 5,045,732$

Terminal:

Airline Rent 2,529,395$ 2,754,332$

Per Turn Fees 315,698 335,060

Passenger Support Services 324,360 331,626

Security 105,196 118,177

Concession& Other Rents 363,884 518,421

Rental Cars 1,455,018 1,374,405

Restaurant/Newsstand 297,150 220,605

Advertising ‐ ‐

Other 116,961 27,121

Utility Fees & Other 34,828 30,399

Total Terminal Rents 5,542,490$ 5,710,147$

Parking & Roadways 4,703,073$ 4,586,999$

Aviation Leased Areas:

Hangar 1 Rental ‐$ 56,738$

Hangar 2 Rental 27,720 33,995

Hangar 3 Rental 258,071 262,589

Hangar 4 Rental ‐ ‐

Hangar 5 Rental 20,496 21,112

Hangar 7 Rental 313,344 276,857

Hangar 8 Rental 231,156 188,007

Hangar 9 Rental 739,011 751,848

Hangar 10 Rental 473,364 491,989

T‐Hangars 201,444 191,610

Air Cargo Building & Land Rents 123,432 100,870

Ramp & Gatecard Fees 38,016 35,246

Total Aviation Leased Areas 2,426,054$ 2,410,861$

Non‐Aviation Leased Areas:

Building Rents 374,469$ 404,553$

Total Non‐Aviation Rents 374,469$ 404,553$

Aviation Services:

Gross Fuel Sales 1,259,711$ 1,361,598$

Landing Fees ‐ 145,588

Into Plan Fees 1,807,650 2,030,969

Hangar & Ramp Rentals 238,560 200,927

Miscellaneous Income 206 ‐

Total Aviation Services 3,306,127$ 3,739,082$

Ground Handling and Other:

Ground Handling and Other 3,009,780$ 4,620,471$

Total Ground Handling and Other 3,009,780$ 4,620,471$

Advertising:

Advertising 306,000$ 303,114$

Total Advertising 306,000$ 303,114$

GA Airports:

Hangar & Ramp Rentals 567,656$ 575,165$

Fuel Sales ‐ FBO 690,897 613,791

Pilot Supplies Sales 2,221 16

Miscellaneous Income 2,221 750

Total GA Airports 1,262,995$ 1,189,722$

Total Operating Revenue 25,078,780$ 28,010,681$

1.) Revenue projections derived from information provided by Authority management.

TABLE 2



OPERATING REVENUES

Page 29 of 41

Budget Budget

2016 2017

Direct Operating Expenses 3,488,759$ 4,031,241$

Indirect Operating Expenses 504,830 713,961

O&M Reserve Requirement 1 139,917 125,269

Debt Service 15,263 15,261

Debt Service Coverage 3,816 3,815

Amortization of Capital Expenditures ‐ 160,000

Total Requirement 4,152,584$ 5,049,547$

LESS: Apron Expenses 2 399,359 474,520

LESS: Apron O&M Reserve 13,992 12,527

LESS: Previous Year's Debt Service Coverage 4,792 3,816

LESS: World Fuel Annual Incentive 200,000 205,000

LESS: Land Rent Credit 123,560 90,060

LESS: Security Surcharge (35%) 56,644 63,634

LESS: Landing Fee‐Itinerant FBO Credit ‐ ‐

Net Requirement 3,354,238$ 4,199,990$

Total Airline Landed Weight (000 lbs.) 657,061 850,162

Airline Landing Fee 5.10$ 4.94$

Airline Landing Fees 3,354,238$ 4,199,990$

1.) Represents 2 months (1/6) of the incremental change in O&M Expenses.

2.) Equals 10% of Direct and Indirect Airfield expenses.

TABLE 3



LANDING FEE RATE

Page 30 of 41

Budget Budget

2016 2017

Direct Operating Expenses 399,359$ 474,520$


Total Requirement 413,351$ 487,047$

LESS: Non‐Signatory Paid Premiums/Diversions ‐ ‐

Net Requirement 413,351$ 487,047$

Total Landed Weight 703,162

Annual Apron Fee 0.69$


2.) Beginning in 2017, the Apron monthly requirement will be charged to the airlines based on landed weight.

TABLE 4



APRON REQUIREMENT

Page 31 of 41

Budget Budget

2016 2017

Direct Operating Expenses 4,693,880$ 4,671,773$

Indirect Operating Expenses 631,037 876,006


Debt Service 848,894 848,791

Debt Service Coverage 212,223 212,198

Amortization of Capital Expenditures ‐ 26,576

Total Requirement 6,394,289$ 6,672,488$

LESS: Previous Year's Debt Service Coverage 266,550 212,223

LESS: Passenger Support Services 2 324,360 331,626

LESS: Security Surcharge (65%) 105,196 118,177

Net Requirement 5,698,183$ 6,010,461$

Total Rentable Space 75,812 75,812

Total Administrative Space 9,009 9,009

Total Rentable and Admin Space 84,821 84,821

Terminal Rental Rate 67.18$ 70.86$

Airline Space 52,943 52,943

Airline Rented Space 50,589 50,589

Airline Terminal Rental Revenue 3,398,469$ 3,584,716$


2.) Represents the charges associated with customer service in the Airport

(ex. Curbside check in assistance).

TABLE 5



TERMINAL RENTAL RATE

Page 32 of 41

Budget Budget

Space Rent ‐ Per Enplanement 2016 2017

Projected Terminal Fees 3,398,469 3,584,716

Projected Enplanements 323,680 363,623

Annual Rental Cost per Enplanement [ A ] 10.50$ 9.86$

Projected Enplanements 323,680 363,623

Gates in Use 7 7

Projected Enplanements per Gate [ B ] 46,240 51,946

Average Rental Fee per Gate [ A * B = C ] 485,496$ 512,102$

Total Passenger Operations 5,595 5,619

Days 365 365

Passenger Operations per Day 15.33 15.39

Total Gates in Use 7 7

Passenger Operations per Day per Gate 1 2.19 2.20

Days 365 365

Total Turns per Gate per Year [ D ] 799.35 802.67

Projected Gate Cost per Turn [ C/D = E ] 607.36$ 638.00$

Estimated Ground Handling Fee

Estimated Salary Cost Per Hour 18.23$ 18.59$

Benefits/Payroll Tax % 49% 49%

Est. Hours per Turn 15 15

Est. Non Salary Expense % 15% 15%

Estimated Ground Handling Fee per Turn 468.49$ 477.86$

Projected Terminal Fees per Turn 607.36$ 638.00$

Estimated Ground Handling Fee per Turn 468.49$ 477.86$

Total Fees per Turn 1,075.85$ 1,115.86$

Additional Fees

Landing Fee (per 1,000 lbs.) 5.10$ 4.94$

Apron Fee (per 1,000 lbs. of landed weight) 0.69$

Security Fee (per enplanement) 0.50$ 0.50$

1.) Operations calculated by Unison Consulting as part of the November 2015 traffic forecast.

TABLE 6



PER TURN FEE

Page 33 of 41

Budget Budget

2016 2017

Passenger Airline Landing Fees 1,743,787$ 1,836,889$

Airline Terminal Rents 2,529,395 2,754,332

Per Turn Fees 315,698 335,060

Passenger Airline Apron Revenue 413,351 487,047

Passenger Support Services 324,360 331,626

Security Surcharge 1 161,840 181,811

Total Airline Revenues 5,488,431$ 5,926,767$

Enplanements 2

323,680 363,623

Airline Cost Per Enplanement 16.96$ 16.30$

1.) Security Surcharge is $0.50 per enplaned passenger.

2.) Enplanements calculated based on extrapolated 2016 Actual enplanements.

TABLE 7



PASSENGER AIRLINE COST PER ENPLANEMENT

Page 34 of 41

Budget Budget

2016 2017

Airline Landing Fees 3,354,238$ 4,199,990$

Airline Apron Fees 413,351 487,047

Airline Terminal Rentals 1 2,845,093 3,089,393

Nonairline Revenues 2 15,424,193 16,831,979

Operating Revenues 22,036,874$ 24,608,410$

Operating Expenses 16,414,041$ 19,398,638$

Net Operating Income 5,622,833$ 5,209,772$

Debt Service 3,303,657$ 3,303,657$

O&M Reserve Requirement 437,507 497,433

Renewal and Replacement Requirement ‐ ‐

Subordinated Indebtedness ‐ ‐

Capital Expenditures ‐ ‐

Net Deposit to General Fund 1,881,669$ 1,408,682$

Net Operating Income 5,622,833$ 5,209,772$

Plus: Transfers

Coverage from Landing Fee 3,816 3,815

Coverage from Terminal Rate 126,573 126,558

Transfers ‐ ‐

Net Revenues 5,753,222$ 5,340,145$

Debt Service 3,303,657$ 3,303,657$

Net Revenue Requirement 3 1.74 1.62

1.) Includes per turn revenue.

2.) Net of cost of sales.

3.) The Net Revenue Requirement per the Series 2015 bond covenant established that the Net Revenue Requirement ratio has

to be at least 1.57 the Aggregate Debt Service for such period.

TABLE 8



CASH FLOW

Page 35 of 41

BOND RATE MAINTENANCE COVENANT

Under the covenant the Authority agrees that it shall at all times fix, revise, charge and collect rentals,rates, fees and other charges for the use of the Airport in order that in each Fiscal Year the Net Revenuesshall at least equal 1.57 times the Aggregate Debt Service for such period.

The 2017 Budget is set at a rate of 1.62 times the aggregate debt service. Following is that computation:

* Net Revenues 5,340,145$

** Aggregate Debt Service 3,303,657$

Coverage: Net Revenues / Aggregate Debt Service 1.62

* Refer to Table 8 of the Rates and Charges for the calculation of this number

** Annual amount to be deposited to cover the annual Debt Service requirement. Payments are made in equal monthly installments to trustee.


Page 36 of 41


Braden Airpark

EXHIBITS

Page 37 of 41

5 YEAR CAPITAL IMPROVEMENT PROGRAM


EXHIBIT A: 2017 - 2021NOVEMBER 22, 2016

2017 Capital Improvements LNAA Share 2018 Capital Improvements LNAA Share 2019 Capital Improvements LNAA Share 2020 Proposed Capital Improvements LNAA Share 2021 Capital Improvements LNAA Share

LEHIGH VALLEY INTERNATIONAL AIRPORT LEHIGH VALLEY INTERNATIONAL AIRPORT LEHIGH VALLEY INTERNATIONAL AIRPORT LEHIGH VALLEY INTERNATIONAL AIRPORT LEHIGH VALLEY INTERNATIONAL AIRPORT

PennDOT Multimodal Transportation Center $751,040 FAA 101-2016 - Master Plan Update & Obstruction Study $21,900 Runway 6/24 Rehabilitation - Construction - PH.I $333,750 Runway 6/24 Rehabilitation - Construction - PH.II $320,000 Runway 6/24 Rehabilitation - Construction - PH.III $337,000FAA 100-2016 - Acquire ARFF Vehicle $44,322 Runway 6/24 Rehabilitation - PH.II Design $34,700 Acquire Runway 24 RPZ Land $50,000 Relocate Taxiway "E" - Design $8,750FAA 101-2016 - Master Plan Update & Obstruction Study $43,800 Acquire (2) Pieces of Snow Removal Equipment (SRE) $50,000FAA 102-2016 - Runway 6/24 Rehabilitation - PH.I Design $10,525 Land Reimbursement (Behind Maintenance Facility) $37,000LVIA Grant Projects Sub-Total $849,687 Land Reimbursement (Race Street Properties) $17,800

LVIA Grant Projects Sub-Total $161,400 LVIA Grant Projects Sub-Total $383,750 LVIA Grant Projects Sub-Total $328,750 LVIA Grant Projects Sub-Total $337,000

QUEEN CITY AIRPORT

FAA 19-2013 - Obstruction Study $3,000 QUEEN CITY AIRPORT QUEEN CITY AIRPORT QUEEN CITY AIRPORT QUEEN CITY AIRPORT

FAA 20-2016 - Stormwater Management Study $7,500 Obstruction Removal - Short Form EA $7,500 Obstruction Removal - Design/Construction $35,000 Rehabilitate Runway 15/33 - Design $18,800 Rehabilitate Runway 15/33 - Construction $56,750Acquire Snow Removal Equipment $25,000 Construct T-Hangars (State) - PH. II Construction $500,000 Snow Removal Equipment Building - Design $4,000 Snow Removal Equipment Building - Construct $125,000Construct T-Hangars (State) - PH. I Design $250,000 Realign/Construct Taxiway 'C' $68,421

Queen City Grant Projects Sub-Total $10,500 Queen City Grant Projects Sub-Total $282,500 Queen City Grant Projects Sub-Total $535,000 Queen City Grant Projects Sub-Total $22,800 Queen City Grant Projects Sub-Total $250,171

BRADEN AIRPARK BRADEN AIRPARK BRADEN AIRPARK BRADEN AIRPARK BRADEN AIRPARK

Demolish Terminal Building $75,000 New Terminal Building $150,000 Structure Demolition $75,000 Construct Aircraft Storage Hangars $500,000 Construct Perimeter Fence & Gates $135,000Braden Airpark Grant Projects Sub-Total $75,000 Braden Airpark Grant Projects Sub-Total $150,000 Braden Airpark Grant Projects Sub-Total $75,000 Braden Airpark Grant Projects Sub-Total $500,000 Braden Airpark Grant Projects Sub-Total $135,000

TOTAL FOR GRANT PROJECTS $935,187 TOTAL FOR GRANT PROJECTS $593,900 TOTAL FOR GRANT PROJECTS $993,750 TOTAL FOR GRANT PROJECTS $851,550 TOTAL FOR GRANT PROJECTS $722,171

Replace/Relocate Main Terminal Switchgear - Construction $264,500 Replace Departure Elevator & Escalators - PH. II Construction $600,000 Replace Departure Elevator & Escalators - PH. III Construction $500,000 Main Terminal Renovations - Phase III - Construction - PH.II $3,000,000 Rehabilitate Main Air Carrier Apron - Construction $1,500,000Replace Departure Elevator & Escalators - PH. I Design $100,000 Parking Lot Rehabilitation (pavement/booth/equipment) - PH. II $600,000 Parking Lot Rehabilitation (pavement/booth/equipment) - PH. III $500,000 Snow Removal Equipment Building - Construction $2,500,000Main Terminal (TSA Area) Roof Repair - Design/Construction Lease Item ABE Cargo Building/Apron Development - Construction - PH.I $2,000,000 ABE Cargo Building/Apron Development - Construction - PH.II $2,000,000Upgrade/Replace Hangar 7 Sprinkler System - PH. I $125,000 Main Terminal Renovations - Phase III - Design $500,000 Main Terminal Renovations - Phase III - Construction - PH.I $3,000,000Upgrade/Replace Hangar 7 Sprinkler System - PH. II $200,000 T-Hangar Pavement Rehabilitation $1,000,000 Snow Removal Equipment Building - Design $450,000Parking Lot Rehabilitation (pavement/booth/equipment) - PH. I $150,000 Rehabilitate Main Air Carrier Apron - Design $600,000Relocate Telephone & Fiber Optic Systems - Demarcation Lease ItemABE Bulk Hangar Development BMO LoanABE Cargo Building/Apron Development - Conceptual Design $96,000Main Terminal Renovations - Phase III Programming $100,000Office Renovations/Relocation - Design & Construction Lease Item

TOTAL MAJOR NON-GRANT PROJECTS $1,035,500 TOTAL MAJOR NON-GRANT PROJECTS $4,700,000 TOTAL MAJOR NON-GRANT PROJECTS $7,050,000 TOTAL MAJOR NON-GRANT PROJECTS $5,500,000 TOTAL MAJOR NON-GRANT PROJECTS $1,500,000

ARFF ARFF ARFF ARFF ARFF

Acquire Ballistic Vests & Helmets $8,600 ARFF Sub-Total $0 Acquire Enclosed Trailer $5,000 Acquire Mobile Incident Command Vehicle $15,000 Acquire ATV & Trailer $16,000Acquire Portable Radios Lease Item Acquire Air Bag Aircraft Lift System $15,000 ARFF Sub-Total $15,000 ARFF Sub-Total $16,000

Acquire 4x4 Utility Vehicle Lease Item Operations & Safety Administrative ARFF Sub-Total $20,000

ARFF Sub-Total $8,600 Operations & Safety Administrative Sub-Total $0 Operations & Safety Administrative Operations & Safety Administrative

Operations & Safety Administrative Acquire/Install Additional CCTV Cameras (5) $15,000 Acquire/Install Additional CCTV Cameras (5) $15,000Operations & Safety Administrative Operations Center Acquire/Install Additional CCTV Cameras (10) $30,000 Operations & Safety Administrative Sub-Total $15,000 Operations & Safety Administrative Sub-Total $15,000

Update of IET System Training Programs $27,000 Operations Center Sub-Total $0 Acquire Security Infrastructure Detection/Prevention Systems $50,000Expand Equipment Workstation $10,000 Acquire Replacement Furniture $30,000 Operations Center Operations Center

Operations & Safety Administrative Sub-Total $37,000 Operations Operations & Safety Administrative Sub-Total $110,000 Acquire Replacement Camera Display Monitors $6,000 Replace Telecommunications Equipment $10,000Acquire Gate Management Software $10,000 Acquire Multi-Channel Audio Recording System $15,000 Operations Center Sub-Total $10,000

Operations Center Operations Sub-Total $10,000 Operations Center Replace Telecommunications Equipment $10,000Acquire Radio Trunking $10,000 Replace Telecommunications Equipment $10,000 Operations Center Sub-Total $31,000 Operations

Acquire Multi-Modal Group Messaging Notification System Lease Item Police Operations Center Sub-Total $10,000 Operations Sub-Total $0

Acquire Replacement Telecommunications Equipment $10,000 Acquire In-Car Video Recording Systems $15,000 Operations

Operations Center Sub-Total $20,000 Police Sub-Total $15,000 Operations Acquire In-Car BioAcoustic Bird Dispersal System $35,000 Police

Acquire In-Car Airfield Condition Reporting System $35,000 Acquire Office Furniture $6,000 Acquire Replacement Vehicle (#98) $45,000Operations Airside - Maintenance Acquire In-Car Airfield Inspection Management System $20,000 Operations Sub-Total $41,000 Police Sub-Total $45,000

Acquire CFME $75,000 Misc. Pavement Repairs/Crack Sealing - PH.I $150,000 Operations Sub-Total $55,000

Operations Sub-Total $75,000 Acquire 12,000 gal. Airfield Deicing Fluid Storage Tank $30,000 Police Airside - Maintenance

Acquire Two (2) Replacement Airfield Vehicle Gate Operators $100,000 Police Acquire Replacement Vehicle (#97) $40,000 Misc. Pavement Repairs/Crack Sealing - PH.III $300,000Police Acquire Front-end Loader $20,000 Police Sub-Total $0 Police Sub-Total $40,000 Acquire Replacement 3 cubic yard rubber tire loader (1984) $100,000

Institute K9 Program $22,000 Airfield Sub-Total $300,000 Replacement 4-wheel drive Utility Body Pickup w/Plow (2008) $60,000Acquire Ballistic Vests & Helmets Lease Item Airside - Maintenance Airside - Maintenance Acquire Two (2) Replacement Airfield Vehicle Gate Operators $12,000Police Vehicle Lease Item Landside/Terminal - Maintenance Misc. Pavement Repairs/Crack Sealing - PH.II $250,000 Misc. Pavement Repairs/Crack Sealing - PH.III $300,000 Airfield Sub-Total $472,000

Police Sub-Total $22,000 Acquire Replacement HVAC #5 in Main Terminal $100,000 Acquire Replacement Truck-Mount Airfield Painting Machine $100,000 Acquire Replacement 4-wheel drive Pickup w/Plow (1997) $50,000Rehabilitate Main Terminal Restrooms - PH.II $100,000 Acquire Replacement 20' Ramp Snow Plow Blade $20,000 Acquire Replacement MIG Welding Equipment $25,000 Landside/Terminal - Maintenance

Airside - Maintenance Acquire Replacement Box Van (1996) $30,000 Acquire Replacement Airfield Mower w/72" Cutting Width $15,000 Acquire Two (2) Replacement Airfield Vehicle Gate Operators $30,000 Replace HVAC Mixing Boxes in Wiley Post Concourse $1,500,000Acquire VMAG - Gate 8 Lease Item Acquire Replacement Baggage Carts (20) $15,000 Acquire Replacement Vehicle Emissions/Diagnostic Equip. $10,000 Airfield Sub-Total $405,000 Replace Passenger Boarding Bridges - PH. IV $600,000Acquire 1 Cu. YD Bucket for Kubota Lease Item Replace Departure Bldg. HVAC units w/ Single Unit & VAV $150,000 Acquire Two (2) Replacement Airfield Vehicle Gate Operators $30,000 Terminal Sub-Total $2,100,000

Acquire Airfield Flail Mower Lease Item Main Terminal Emergency Generators - Design $60,000 Airfield Sub-Total $425,000 Landside/Terminal - Maintenance

Acquire 4 Cu. YD Front-End Loader Lease Item Install Security Bollards - Lower Level Roadway $20,000 Replace Admin. Office Windows $200,000 Parking and Roadways - Maintenance

Acquire Pickup Truck Lease Item Replace Passenger Boarding Bridges - PH. I $600,000 Landside/Terminal - Maintenance Acquire Replacement Baggage Carts (20) $30,000 Rehabilitate Parking Lots & Landside Roadways - PH. VI $600,000Jetbridge 3 Removal $50,000 New Millwork for Departure $30,000 Rehab. Passenger Entrance/Exit Vestibules (All) $750,000 Rehabilitate Roof on Wiley Post Concourse (1997) $500,000 Parking and Roadways Sub-Total $600,000

Replace Maintenance Fuel Farm Piping $10,000 Terminal Sub-Total $1,105,000 Acquire Replacement Automatic Floor Cleaning Machine $20,000 Replace RTAA Air Cooled Chiller for Wiley Post Concourse $1,000,000Replace Fuel Management System - Maintenance Fuel Farm $10,000 Acquire Replacement Baggage Carts (20) $15,000 Replace Passenger Boarding Bridges - PH. III $600,000 Aviation Leased - Maintenance

Airfield Sub-Total $50,000 Parking and Roadways - Maintenance Acquire Replacement Box Van (2001) $30,000 Terminal Sub-Total $2,330,000 Rehabilitate T-Hangars (ABE) $500,000Rehabilitate Parking Lots & Landside Roadways - PH. III $600,000 Main Terminal Emergency Electrical Generators - Construct $1,500,000 Aviation Leased Sub-Total $500,000

Landside/Terminal - Maintenance Rehabilitate Maintenance Roadway/Parking $600,000 Main Terminal Exterior Steel Painting $100,000 Parking and Roadways - Maintenance

Pedestrian Tunnel & Bridge Repairs - Design & Construction Lease Item Parking and Roadways Sub-Total $1,200,000 Replace Passenger Boarding Bridges - PH.II $600,000 Rehabilitate Parking Lots & Landside Roadways - PH. V $600,000 Non-Aviation Leased - Maintenance

Passenger Boarding Bridge Repaint - PH.I $56,000 Terminal Sub-Total $3,015,000 Parking and Roadways Sub-Total $600,000 Miscellaneous Structures Demolition (ABE/N43) - PH. V $35,000Passenger Boarding Bridge Refurbishment Lease Item Aviation Leased - Maintenance Non-Aviation Leased Sub-Total $35,000

Terminal Brick Repointing $100,000 Rehabilitate Parking Lot at Hangar 9 $80,000 Parking and Roadways - Maintenance Aviation Leased - Maintenance

Service Animal Relief Area $30,000 Replace Hangar 7 Doors $400,000 Rehabilitate Parking Lots & Landside Roadways - PH. IV $700,000 Repair Various Pavements at Hangar 7 and Hangar 9 $100,0003rd Floor Lighting Replacement $10,000 Replace N43 Hangar Doors $100,000 Parking and Roadways Sub-Total $700,000 Repaint Exterior of Office Core at Hangar 9 $50,000Replace Passenger Boarding Bridge Access Controls PH. II $11,500 Hangar 3 Office Core Roof Repair $40,000 Aviation Leased Sub-Total $150,000

New Carpet for Terminal Areas - PH.I Lease Item Acquire Replacement Emergency Generator at Hangar 3 $35,000 Aviation Leased - Maintenance

Acquire Scissor Lift $10,600 Aviation Leased Sub-Total $655,000 Rehabilitate Parking Lot at Hangar 3 $100,000 Non-Aviation Leased - Maintenance

Renovate TSA Recomposure Area $30,000 Replace Office Core Windows for Hangar 7 $500,000 Miscellaneous Structures Demolition (ABE/N43) - PH. IV $35,000Rehabilitate Main Terminal Restrooms - PH.I $85,000 Non-Aviation Leased - Maintenance Repaint Exterior Structure of Hangar 7 $200,000 Rehabilitate Roof for 995 Postal Road Facility $100,000Replace Air Handler Unit #4 Lease Item Miscellaneous Structures Demolition (ABE/N43) - PH. II $100,000 Aviation Leased Sub-Total $800,000 Non-Aviation Leased Sub-Total $135,000

Elevator Rehabilitation Lease Item Old Terminal (Gov't Building) Building Assessment $90,000

OPERATIONS & SAFETY OPERATIONS & SAFETY OPERATIONS & SAFETY

FAA & STATE GRANT PROJECTS FAA & STATE GRANT PROJECTS

OPERATIONS & SAFETY

MAJOR NON-GRANT PROJECTS MAJOR NON-GRANT PROJECTS MAJOR NON-GRANT PROJECTS MAJOR NON-GRANT PROJECTS

FAA & STATE GRANT PROJECTS

MAJOR NON-GRANT PROJECTS

FAA & STATE GRANT PROJECTS FAA & STATE GRANT PROJECTS

OPERATIONS & SAFETY

Page 38 of 41

5 YEAR CAPITAL IMPROVEMENT PROGRAM


EXHIBIT A: 2017 - 2021NOVEMBER 22, 2016

2017 Capital Improvements LNAA Share 2018 Capital Improvements LNAA Share 2019 Capital Improvements LNAA Share 2020 Proposed Capital Improvements LNAA Share 2021 Capital Improvements LNAA Share

FAA & STATE GRANT PROJECTS FAA & STATE GRANT PROJECTSFAA & STATE GRANT PROJECTS FAA & STATE GRANT PROJECTS FAA & STATE GRANT PROJECTSHVAC Building Controls $25,000 Replace Maintenance Facility Fuel Tanks $600,000 Non-Aviation Leased - Maintenance

Acquire new Terminal Signage Lease Item Non-Aviation Leased Sub-Total $790,000 Miscellaneous Structures Demolition (ABE/N43) - PH. III $75,000Replace Backflow Preventers $10,000 Rehabilitate Roof for 997 Postal Road Facility $100,000Rehabilitate Main Terminal Generator Lease Item Rehabilitate Roof for Car Wash Facility (Formerly Hangar 1) $75,000Acquire Maintenance Van Lease Item Non-Aviation Leased Sub-Total $250,000

Replace Passenger Boarding Bridge Tires - Solid $8,500Terminal Sub-Total $376,600

Parking and Roadways - Maintenance

Upper Roadway Stormwater Inlets $30,000Misc. Pavement Repairs/Crack Sealing Lease ItemAcquire Salt Storage Bin Lease ItemParking and Roadways Sub-Total $30,000

Aviation Leased - Maintenance

Replace Hangar 7 A/C Unit Lease ItemReplace Hangar 3 Rapid Air Heating Unit Lease ItemReplace Hangar 9 Boiler Lease ItemXLL Lower Bulk Hangar Roof Repair $10,000N43 Bulk Hangar Roof Repair $17,500Aviation Leased Sub-Total $27,500

Non-Aviation Leased - Maintenance

Miscellaneous Structures Demolition (ABE/N43) - PH. I $50,000Firestation Boiler Replacement Lease ItemNon-Aviation Leased Sub-Total $50,000

TOTAL OPERATIONS AND SAFETY $696,700 TOTAL OPERATIONS AND SAFETY $4,075,000 TOTAL OPERATIONS AND SAFETY $5,385,000 TOTAL OPERATIONS AND SAFETY $3,762,000 TOTAL OPERATIONS AND SAFETY $3,793,000

Existing Fuel Trucks Lease $156,000 Existing Fuel Trucks Lease $156,000 Existing Fuel Trucks Lease $156,000 Existing Fuel Trucks Lease $156,000 Existing Fuel Trucks Lease $156,000N43 Fuel Farm Repairs $16,000 XLL Lobby and Facility Upgrades - PH.III $35,000 Hangar 7 Renovations - Phase III $50,000 Renovate/Upgrade Line Services Facility $150,000 Acquire/Install Aircraft Potable Water Cabinet at FBO $47,500ABE Fuel Farm Painting $50,000 Hangar 7 Renovations - Phase II $150,000 Replace/Upgrade Aviation Fuel Farm Fuel Pumps $33,000 Acquire Replacement Customer Transportation Vehicle - XLL $40,000 Acquire Baggage Carts (5) for Airline Services $25,000XLL Airport Sign Lease Item Acquire Ground Power Units - GPU (2) $84,000 Upgrade Ramp & Apron at Hangar 7 $500,000Hangar 7 Renovations - PH.I $50,000 Acquire Airline Baggage Carts (5) $15,000 Acquire Property Management Software $20,000XLL Lobby and Facility Upgrades - PH.2 $35,000 Acquire Belt Loaders (2) $100,000Replace Hangar 7 lobby and Pilot lounge furniture $25,000 Acquire Aircraft Water Cart $50,000Replace Mack Snow Plow - XLL Lease ItemAcquire Aircraft Tug - XLL Lease ItemXLL Fuel Farm World FuelAcquire De-Icing Truck Lease ItemAcquire GPU Lease Item

TOTAL AVIATION SERVICES - FBO $332,000 TOTAL AVIATION SERVICES - FBO $590,000 TOTAL AVIATION SERVICES - FBO $759,000 TOTAL AVIATION SERVICES - FBO $346,000 TOTAL AVIATION SERVICES - FBO $228,500

Acquire Belt Loader Lease Item Acquire K Loader $250,000 Acquire K Loader $250,000 Acquire K Loader $250,000Acquire Tug Lease Item Acquire GPU $60,000 Acquire GPU $60,000

TOTAL GROUND HANDLING TOTAL GROUND HANDLING $310,000 TOTAL GROUND HANDLING $310,000 TOTAL GROUND HANDLING $250,000 TOTAL GROUND HANDLING $0

Acquire Pushback Tractor Lease Item Acquire Tug $50,000 Acquire Cargo Dollies $35,000 Acquire Tug $50,000 Acquire Cargo Dollies $35,000TOTAL CARGO TOTAL CARGO $50,000 TOTAL CARGO $35,000 TOTAL CARGO $50,000 TOTAL CARGO $35,000

Upgrade Closed Circuit TV (CCTV) Cameras Lease Item Upgrade Flight Information Display Systems (FIDS) - PH. II $35,000 Security Access System Repair/Replacement $20,000 MUSE Hardware Replacement/Upgrade Program $14,575 MUSE Hardware Replacement/Upgrade Program $15,000Cardkey Upgrades $40,000 Computers and Hardware Replacement/Upgrade $50,000 Upgrade Flight Information Display Systems (FIDS) - PH. III $35,000 Computers and Hardware Replacement/Upgrade $50,000 Computers and Hardware Replacement/Upgrade $50,000Network Upgrades Lease Item Software Updates $40,000 Computers and Hardware Replacement/Upgrade $50,000 Hardware (UPS/Switches/Security/Routers) Repair/Replacement $34,100 Software Updates $40,000Replace Desktop Computers & Laptops Lease Item Server Replacement $60,000 Software Updates $40,000 Upgrade Flight Information Display Systems (FIDS) - PH. IV $20,000 Server Replacement $50,000Software Updates $40,000 Server Replacement $40,000 Software Updates $40,000 Upgrade Flight Information Display Systems (FIDS) - PH. V $20,000Common Use Counter Upgrades Lease Item Telco Hardware Replacement/Upgrades $7,000 Telco Hardware Replacement/Upgrades $8,750 Hardware (UPS/Switches/Security/Routers) Repair/Replacement $14,100Common Use Kiosk Upgrades Lease Item Telco Hardware Replacement/Upgrades $11,650

TOTAL INFORMATION TECHNOLOGY $80,000 TOTAL INFORMATION TECHNOLOGY $185,000 TOTAL INFORMATION TECHNOLOGY $192,000 TOTAL INFORMATION TECHNOLOGY $167,425 TOTAL INFORMATION TECHNOLOGY $200,750

Advertising Equipment $65,000 Office Furniture Replacement $40,000 Office Furniture Replacement $25,000 Office Furniture Replacement $25,000 Office Furniture Replacement $25,000Digital Advertising Equipment $50,000 Document Back-Scanning $250,000Document Management System $75,000Office Furniture Replacement $35,000Terminal Amenities $25,000

TOTAL ADMINISTRATION $250,000 TOTAL ADMINISTRATION $290,000 TOTAL ADMINISTRATION $25,000 TOTAL ADMINISTRATION $25,000 TOTAL ADMINISTRATION $25,000

Acquire Short-Bus Lease Item Roadway Signage - Phase I $100,000 Roadway Signage - Phase II $100,000 Roadway Signage - Phase III $100,000 Roadway Signage - Phase IV $100,000TOTAL PARKING/PASSENGER SERVICES $0 TOTAL PARKING/PASSENGER SERVICES $100,000 TOTAL PARKING/PASSENGER SERVICES $100,000 TOTAL PARKING/PASSENGER SERVICES $100,000 TOTAL PARKING/PASSENGER SERVICES $100,000

Existing Equipment - Capital Lease $445,680 Existing Equipment - Capital Lease $445,680 Proposed Equipment - Capital Lease $1,323,277Existing Constellation Energy Savings Lease $302,656 Existing Constellation Energy Savings Lease $302,656Proposed Equipment - Capital Lease $1,323,277 Proposed Equipment - Capital Lease $1,323,277

TOTAL ALLOCATED LEASE $2,071,613 TOTAL ALLOCATED LEASE $2,071,613 TOTAL ALLOCATED LEASE $1,323,277 TOTAL ALLOCATED LEASE $0 TOTAL ALLOCATED LEASE $0

TOTAL $5,401,000 TOTAL $12,965,513 TOTAL $16,173,027 TOTAL $11,051,975 TOTAL $6,604,42110% Contingency $540,100 10% Contingency $1,296,551 10% Contingency $1,617,303 10% Contingency $1,105,198 10% Contingency $660,442

2017 GRAND TOTAL $5,941,100 2018 GRAND TOTAL $14,262,065 2019 GRAND TOTAL $17,790,330 2020 GRAND TOTAL $12,157,173 2021 GRAND TOTAL $7,264,863

5 YEAR GRAND TOTAL $57,415,530

AVIATION SERVICES - FBO (ABE/XLL/N43)

GROUND HANDLING SERVICES

CARGO

AVIATION SERVICES - FBO (ABE/XLL/N43) AVIATION SERVICES - FBO (ABE/XLL/N43) AVIATION SERVICES - FBO (ABE/XLL/N43) AVIATION SERVICES - FBO (ABE/XLL/N43)

INFORMATION TECHNOLOGY

CARGO CARGO CARGO

GROUND HANDLING SERVICES GROUND HANDLING SERVICES GROUND HANDLING SERVICES GROUND HANDLING SERVICES

CARGO

INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY

ADMINISTRATION ADMINISTRATION ADMINISTRATION ADMINISTRATION

INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY

ALLOCATED

ADMINISTRATION

PARKING/PASSENGER SERVICES PARKING/PASSENGER SERVICES PARKING/PASSENGER SERVICES PARKING/PASSENGER SERVICES PARKING/PASSENGER SERVICES

NOTES: 1. Grant Project Costs Represent the Anticipated LNAA Matching Share Needed during the Fiscal Year

2. Existing Capital Leases total $904,336

* Specific equipment needs to be leased under the Financial Lease Programs are shown; Equipment can be interchanged between purchase and a lease as necessary to manage Cash Flow.

ALLOCATED ALLOCATED ALLOCATED ALLOCATED

Page 39 of 41

CAPITAL IMPROVEMENT PROGRAM


EXHIBIT B: 2017 PROJECTS - RATED NOVEMBER 22, 2016

Total Amount Other 1 LNAA Share Type Rating

#LEHIGH VALLEY INTERNATIONAL AIRPORT

1 PennDOT Multimodal Transportation Center $5,097,146 $4,346,106 $751,040 CON 1.R2 FAA 100-2016 - Acquire ARFF Vehicle $886,438 $842,116 $44,322 EQP 1.R

3 FAA 101-2016 - Master Plan Update & Obstruction Study $876,000 $832,200 $43,800 P&E 1.R

4 FAA 102-2016 - Runway 6/24 Rehabilitation - PH.I Design $210,500 $199,975 $10,525 P&E 1.R S&S SAFETY & SECURITY

5 LVIA Grant Projects Sub-Total $7,070,084 $6,220,397 $849,687 R&R REGULATORY REQUIREMENTS

6 CON CONSTRUCTION

7 QUEEN CITY AIRPORT P&E PLANNING & ENVIRONMENTAL

8 FAA 19-2013 - Obstruction Study $60,000 $57,000 $3,000 P&E 1.R CAP CAPACITY ENHANCEMENT

9 FAA 20-2016 - Stormwater Management Study $150,000 $142,500 $7,500 P&E 1.R EQP EQUIPMENT

10 Queen City Grant Projects Sub-Total $210,000 $199,500 $10,500 O OTHER 1112 BRADEN AIRPARK

13 Demolish Terminal Building $150,000 $75,000 $75,000 CON 314 Braden Airpark Grant Projects Sub-Total $150,000 $75,000 $75,000 1.E EMERGENCY15 TOTAL FOR GRANT PROJECTS $7,430,084 $6,494,897 $935,187 1.R REGULATORY

16 2 HIGH

17 Replace/Relocate Main Terminal Switchgear - Construction $754,500 $490,000 $264,500 S&S/R&R 1.R 3 MEDIUM

18 Replace Departure Elevator & Escalators - PH. I Design $600,000 $500,000 $100,000 S&S/R&R 1.R 4 LOW

19 Main Terminal (TSA Area) Roof Repair - Design/Construction $375,000 $375,000 Lease Item CON 1.E20 Upgrade/Replace Hangar 7 Sprinkler System - PH. I $125,000 - $125,000 S&S/R&R 1.E21 Upgrade/Replace Hangar 7 Sprinkler System - PH. II $200,000 - $200,000 S&S/R&R 1.E22 Parking Lot Rehabilitation (pavement/booth/equipment) - PH. I $1,400,000 $1,250,000 $150,000 CON 1.E

23 Relocate Telephone & Fiber Optic Systems - Demarcation $165,000 $165,000 Lease Item CON 1.E

24 ABE Bulk Hangar Development $10,000,000 $10,000,000 BMO Loan CON 225 ABE Cargo Building/Apron Development - Conceptual Design $96,000 - $96,000 CON 226 Main Terminal Renovations - Phase III Programming $100,000 - $100,000 CAP 227 Office Renovations/Relocation - Design & Construction $220,000 $220,000 Lease Item CON 228 TOTAL MAJOR NON-GRANT PROJECTS $14,035,500 $13,000,000 $1,035,500

2930 ARFF

31 Acquire Ballistic Vests & Helmets $8,600 - $8,600 S&S 1.R

32 Acquire Portable Radios $7,000 $7,000 Lease Item EQP 233 Acquire 4x4 Utility Vehicle $18,000 $18,000 Lease Item EQP 234 ARFF Sub-Total $33,600 $25,000 $8,600

3536 Operations & Safety Administrative

37 Update of IET System Training Programs $27,000 - $27,000 S&S/R&R 1.R

38 Expand Equipment Workstation $10,000 - $10,000 EQP 339 Operations & Safety Administrative Sub-Total $37,000 $0 $37,000

4041 Operations Center

42 Acquire Radio Trunking $10,000 - $10,000 S&S 243 Acquire Multi-Modal Group Messaging Notification System $15,000 $15,000 Lease Item EQP 344 Acquire Replacement Telecommunications Equipment $10,000 - $10,000 S&S 345 Operations Center Sub-Total $35,000 $15,000 $20,000

4647 Operations

48 Acquire CFME $75,000 - $75,000 EQP 349 Operations Sub-Total $75,000 $0 $75,000

5051 Police

52 Institute K9 Program $22,000 - $22,000 S&S 1.R

53 Acquire Ballistic Vests & Helmets $17,500 $17,500 Lease Item EQP 1.R

54 Police Vehicle $45,000 $45,000 Lease Item EQP 255 Police Sub-Total $84,500 $62,500 $22,000

5657 Airside - Maintenance

58 Acquire VMAG - Gate 8 $50,000 $50,000 Lease Item S&S 259 Acquire 1 Cu. YD Bucket for Kubota $8,000 $8,000 Lease Item EQP 260 Acquire Airfield Flail Mower $125,000 $125,000 Lease Item EQP 261 Acquire 4 Cu. YD Front-End Loader $270,000 $270,000 Lease Item EQP 362 Acquire Pickup Truck $41,000 $41,000 Lease Item EQP 363 Jetbridge 3 Removal $50,000 - $50,000 S&S 364 Replace Maintenance Fuel Farm Piping $10,000 - $10,000 S&S 365 Replace Fuel Management System - Maintenance Fuel Farm $10,000 - $10,000 S&S 366 Airfield Sub-Total $564,000 $494,000 $50,000

6768 Landside/Terminal - Maintenance

69 Pedestrian Tunnel & Bridge Repairs - Design & Construction $375,000 $375,000 Lease Item CON 1.E70 Passenger Boarding Bridge Repaint - PH.I $56,000 - $56,000 EQP 1.E71 Passenger Boarding Bridge Refurbishment $40,000 $40,000 Lease Item EQP 1.E72 Terminal Brick Repointing $100,000 - $100,000 CON 1.E

73 Service Animal Relief Area $30,000 - $30,000 R&R 1.R

74 3rd Floor Lighting Replacement $10,000 - $10,000 O 1.R

75 Replace Passenger Boarding Bridge Access Controls PH. II $11,500 - $11,500 S&S 2

76 New Carpet for Terminal Areas - PH.I $100,000 $100,000 Lease Item O 2

77 Acquire Scissor Lift $10,600 - $10,600 EQP 278 Renovate TSA Recomposure Area $30,000 - $30,000 EQP/CON 279 Rehabilitate Main Terminal Restrooms - PH.I $85,000 - $85,000 CON 280 Replace Air Handler Unit #4 $50,000 $50,000 Lease Item EQP 281 Elevator Rehabilitation $60,000 $60,000 Lease Item EQP 382 HVAC Building Controls $25,000 - $25,000 EQP 383 Acquire new Terminal Signage $30,000 $30,000 Lease Item EQP 384 Replace Backflow Preventers $10,000 - $10,000 EQP 385 Rehabilitate Main Terminal Generator $50,000 $50,000 Lease Item EQP 386 Acquire Maintenance Van $35,000 $35,000 Lease Item CON 387 Replace Passenger Boarding Bridge Tires - Solid $8,500 - $8,500 EQP 488 Terminal Sub-Total $1,116,600 $740,000 $376,600

LNAA CASH/RESOURCESFAA & STATE GRANT PROJECTS2

2017 Capital Improvements

$5,000,000

Project Type

Rating

MAJOR NON-GRANT PROJECTS

OPERATIONS & SAFETY

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CAPITAL IMPROVEMENT PROGRAM


EXHIBIT B: 2017 PROJECTS - RATED NOVEMBER 22, 2016

Total Amount Other 1 LNAA Share Type Rating

LNAA CASH/RESOURCESFAA & STATE GRANT PROJECTS2

2017 Capital Improvements

89 Parking and Roadways - Maintenance S&S SAFETY & SECURITY

90 Upper Roadway Stormwater Inlets $30,000 - $30,000 CON 1.E R&R REGULATORY REQUIREMENTS

91 Misc. Pavement Repairs/Crack Sealing $150,000 $150,000 Lease Item CON 1.R CON CONSTRUCTION

92 Acquire Salt Storage Bin $25,000 $25,000 Lease Item EQP 4 P&E PLANNING & ENVIRONMENTAL

93 Parking and Roadways Sub-Total $205,000 $175,000 $30,000 CAP CAPACITY ENHANCEMENT

94 EQP EQUIPMENT

95 Aviation Leased - Maintenance O OTHER

96 Replace Hangar 7 A/C Unit $75,000 $75,000 Lease Item EQP 297 Replace Hangar 3 Rapid Air Heating Unit $100,000 $100,000 Lease Item EQP 298 Replace Hangar 9 Boiler $100,000 $100,000 Lease Item EQP 299 XLL Lower Bulk Hangar Roof Repair $10,000 - $10,000 CON 2 1.E EMERGENCY

100 N43 Bulk Hangar Roof Repair $17,500 - $17,500 CON 3 1.R REGULATORY

101 Aviation Leased Sub-Total $302,500 $275,000 $27,500 2 HIGH

102 3 MEDIUM

103 Non-Aviation Leased - Maintenance 4 LOW

104 Miscellaneous Structures Demolition (ABE/N43) - PH. I $50,000 $50,000 S&S 1.R

105 Firestation Boiler Replacement $40,000 $40,000 Lease Item EQP 3106 Non-Aviation Leased Sub-Total $90,000 $40,000 $50,000107 TOTAL OPERATIONS AND SAFETY $2,543,200 $1,826,500 $696,700

108109 Existing Fuel Trucks Lease3 $156,000 - $156,000 O 1.R

110 N43 Fuel Farm Repairs $16,000 - $16,000 EQP 1.R

111 ABE Fuel Farm Painting $50,000 - $50,000 R&R 1.R

112 XLL Airport Sign $90,000 $90,000 Lease Item EQP 2113 Hangar 7 Renovations - PH.I $50,000 - $50,000 CON 2114 XLL Lobby and Facility Upgrades - PH.2 $35,000 - $35,000 CON/EQP 3115 Replace Hangar 7 lobby and Pilot lounge furniture $25,000 - $25,000 EQP 3116 Replace Mack Snow Plow - XLL $200,000 $200,000 Lease Item EQP 3117 Acquire Aircraft Tug - XLL $50,000 $50,000 Lease Item EQP 3118 XLL Fuel Farm $275,000 $275,000 World Fuel EQP 3119 Acquire De-Icing Truck $350,000 $350,000 Lease Item EQP 3120 Acquire GPU $65,000 $65,000 Lease Item EQP 3121 TOTAL AVIATION SERVICES - FBO $1,362,000 $1,030,000 $332,000

122123 Acquire Belt Loader $50,000 $50,000 Lease Item EQP 2124 Acquire Tug $25,000 $25,000 Lease Item EQP 3125 TOTAL GROUND HANDLING $75,000 $75,000

126127 Acquire Pushback Tractor $200,000 $200,000 Lease Item EQP 2128 TOTAL CARGO $200,000 $200,000

129130 Upgrade Closed Circuit TV (CCTV) Cameras $70,000 $70,000 Lease Item S&S 1.E

131 Cardkey Upgrades $40,000 - $40,000 EQP 2132 Network Upgrades $175,000 $175,000 Lease Item EQP 2133 Replace Desktop Computers & Laptops $56,000 $56,000 Lease Item EQP 2134 Software Updates $40,000 - $40,000 O 2135 Common Use Counter Upgrades $200,000 $200,000 Lease Item EQP 3136 Common Use Kiosk Upgrades $200,000 $200,000 Lease Item EQP 3137 TOTAL INFORMATION TECHNOLOGY $781,000 $701,000 $80,000

138139 Advertising Equipment $65,000 - $65,000 EQP 1.R

140 Digital Advertising Equipment $50,000 - $50,000 EQP 2141 Document Management System $75,000 - $75,000 O 2142 Office Furniture Replacement $35,000 - $35,000 EQP 3143 Terminal Amenities $25,000 - $25,000 EQP 3144 TOTAL ADMINISTRATION $250,000 $0 $250,000

145146 Acquire Short-Bus $60,000 $60,000 Lease Item EQP 2147 TOTAL PARKING/PASSENGER SERVICES $60,000 $60,000 $0

148149 Existing Equipment - Capital Lease3 - - $445,680 O 1.R

150 Existing Constellation Energy Savings Lease3 - - $302,656 O 1.R

151 Proposed Equipment - Capital Lease - - $1,323,277 O 1.R

152153 TOTAL ALLOCATED LEASE $0 $0 $2,071,613

154 TOTAL $26,736,784 $23,387,397 $5,401,000

155 10% Contingency $540,100

156 2017 GRAND TOTAL $26,736,784 $23,387,397 $5,941,100

157 1.E: EMERGENCY SUBTOTAL $2,936,000 $2,275,000 $661,000

158 1.R: REGULATORY SUBTOTAL $9,236,684 $7,577,397 $3,730,900

159 2: HIGH SUBTOTAL $12,137,100 $11,529,000 $608,100

160 3: MEDIUM SUBTOTAL $2,373,500 $1,981,000 $392,500

161 4: LOW SUBTOTAL $33,500 $25,000 $8,500

PARKING/PASSENGER SERVICES

AVIATION SERVICES - FBO (ABE/XLL/N43)

GROUND HANDLING SERVICES

CARGO

INFORMATION TECHNOLOGY

ADMINISTRATION

NOTES: 1. Other funds include FAA, PennDOT, CFC, PFC, and any other funding source

2. Grant Project Costs Represent the Anticipated LNAA Matching Share Needed during the Fiscal Year

3. Existing Capital Leases total $904,336

* Specific equipment needs to be leased under the Financial Lease Programs are shown; Equipment can be interchanged between purchase and a lease as necessary to

manage Cash Flow.

$5,000,000

Rating

ALLOCATED

Page 41 of 41

Documents

2017€¦ · airport planning: engineering design / construction. director information systems & technology: maintenance / facilities (cmms, building automation) safety / security