HomeMy WebLinkAboutPreliminory Feasibility Report
Augusta Richmond GA
DOCUMENT NAMEl=>r--e...\ "I ~\nor~ t="eo.;:)ID l ; ~ le.fO'+-
DOCUMENTTYPE:~e~
YEAR: ~ 9
BOX NUMBER: D'
FILE NUMBER: Il.l 'b D :J
NUMBER OF PAGES:
(5L\
~~. ~ IfI...rr:J:V
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
PRELIMINARY FEASmILITY REPORT
DRAFT 1
Prepared By:
Newton & Associates, Inc.
December 1999
CONTENTS
L
:IN''TR 0 D U CTI 0 N ...............................................
A. PURPOSE AND SCOPE OF THIS REPORT .. eo .. .. .. .. .. .. . ..
B. THE AIRPORT .............."..............................
1. General Description/Location of the Airport. . . . . . . . . . . . . . .
2. Airport l\'Ianagement .................................
n.
THE PROJECT ................................................
A. NEED FOR THE PROJECT.. .. .. .. .. .. .. .. .. .. .. .. . . . .. .. ..
1. Garrett Test Cell. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Common Use Hangar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Master Plan Update/Part 150 . . . . . . . . . . . . . . . . . . . . . . . . ; . .
4. Long-term Parking Lot Expansion ......................
_ 5. Rental Car Parking Lot Rehabilitation ...................
6. N orth/South Taxiway ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Terminal Design and Construction ......................
B. PROJECT COST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1. Federal Grants-in-Aid ................................
2. Passenger Facility Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Local Funding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ID.
ECONOl\tIIC BASE OF THE AIR SERVICE AREA ..................
A. AIR SERVICE AREA DESCRIPTION .......................
B. POPULA TION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. EMPLOYMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1. Labor Force. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Unemployment Rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Industry Sector Employment. . . . . . . . . . . . . . . . . . . . . . . . . .
D. ,IN'COME/SALES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1. Effective Buying Income Projection. . . . . . . . . . . . . . . . . . . . .
2. Per Capita Effective Buying Income ....................
3. Retail Sales ........................................
Page 1
Page 1
Page 1
Page 1
Page 2
Page 3
Page 3
Page 3
Page 3
Page 3
Page 4
Page 4
Page 4
Page 4
Page 5
Page 6
Page 8
Page 8
Page 13
Page 13
Page 13
Page 13
Page 14
Page 14
Page 14
Page 14
Page 14
Page 15
Page 15
IV. AIR TRAFFIC ANALYSIS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 16
A. LEVEL OF EXISTING SCHEDULED PASSENGER AIRL:IN"E
SERVICE ................ -. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 16
B. HISTORICAL PASSENGER TRAFFIC ...................... Page 16
1. Historical Passenger Enplanements and Airline Market Share Page 17
C. CO.MPETING AIRPORTS. .. . . . . .. ... ...... ..... . . .. . .. . .. Page 17
1. Hartsfield Atlanta International Airport. . . . . . . . . . . . . . . .. Page 18
2. Columbia Metropolitan Airport. . . . . . . . . . . . . . . . . . . . . . .. Page 18
D. ESTIMA TE OF A VIA TION ACTIVITY ... . . . . . . . . . . . . . . . . . .. Page 18
-I-
, v. FIN"ANClAL ANALYSIS ......................................... Page 20
A. HISTORICAL FINANCIAL ANALYSIS. . . . . . . . . . . . . . . . . . . . .. Page 20
1. Historical Operating and Maintenance Expenses .......... Page 21
2. Historical Revenues .....'.'........................... Page 22
B. O&M EXPENSE ESTIl\1A TE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 23
C. NONAIRL:IN"E REVENUE ESTIMATES. . . . . . . . . . . . . . . . . . . . .. Page 23
D. MINIMUM AIRLINE REQUIREMENT...................... Page 25
E. SURVEY OF OTHER AIRPORTS' COST PER ENPLANEMENT. Page 26
F. PROFORMA CASH FLOW ................................ Page 27
G. CONCLUSIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 27
-11-
L :IN''TRODUCTION
A. PURPOSE AND SCOPE OF THIS REPORT
This report ("Report") examines and analyzes the ability of the Augusta Aviation Commission
("Commission") to implement various capital improvement projects (collectively referred to as the
"Project") at the Augusta Regional Airport at Bush Field ("Airport") and to finance part of the
cost of the Project with general airport revenue bonds ("Revenue Bonds").
The proceeds of the Revenue Bonds would be used to finance certain portions of (i) the cost of
designing and constructing a new terminal building at the Airport and other related projects; (ii)
fund the debt service reserve which will be a requirement for the Revenue Bonds; (iii) pay interest
during the construction of the Project (Capitalized Interest); and (iii) to provide for the
underwriters discount and certain other costs oftheissuance of the Revenue Bonds.
The purpose of the Report is to provide the Commission and the Augusta Commission with an
independent assessment of the ability of the Commission to fund the project with the Revenue
Bonds and to support the future cost of the Airport including debt service on the Revenue Bonds
from Airport revenues.
B. THE AIRPORT
1. General Description/Location of the Airport
The Airport is situated on 1,142 acres ofIand in eastern Richmond County, Georgia,
approximately five miles south of the City of Augusta along the banks of the Savannah River.
The airport site is situated primarily east of the Doug Barnard Highway (Georgia Highway 56
Loop) and southwest of the Savannah River.
Airport facilities consist of a passenger terminal complex; two intersecting runways, taxiways
navigational aids and supporting land areas; a general aviation apron and supporting buildings and
hangars; and other aviation related hangars, buildings and land areas.
The terminal building is centrally located on the west side of the airport site. The runways are
. located east of the terminal building, South of the terminal building are employee parking, rental
car parking for returns and ready cars, general aviation facilities, and the fuel farm. Parking
structures and surface lots for public long-term and short-term are located north and west of the
terminal. Parking for hotel guests and the hotel facilities are located west of the terminal building.
The area east of Runway 17-35 are reserved for future aeronautical development.
Newton & Associates, Inc
Page 1
Preliminary Feasihility Report
2. Airport Management
The Co~ssion was established in 1952 pursuant to the City Code of Augusta, Section 2-188 as
amended by the Augusta Richmond County Code in September 1997. The Commission was
established for the sole purpose of owning, managin'g, operating and maintaining the Airport. The
Commission is a component of the City of Augusta ("City") and the County of Richmond
("County") governed by a 12 member Board ("Board") appointed by the City. The Commission
provides for the management and operation of the Airport by the employment'ofan Executive
Director and such staff as is deemed necessary by the Board to properly operate, develop, and
maintain the Airport. .The Executive Director is directly responsible to the Commission for all of
the Airport's business and operational activities.
Newton & Associates, Inc
Page 2
Preliminary Feasibility Report
IT. THE PROJECT
The project work elements comprising the Project are presented in Table 11-1. As shown in
Table II-I, the Project consists of the phased design, engineering and construction of a new
terminal building, necessary apron improvements as a: result of the new terminal building,
hardstands for the existing apron, exterior sign age, curb work in front of the new terminal
building, construction of a water line to the new terminal building and other capital projects the
Commission has programmed over the next four years. The other projects the Commission has
planned that are not directly related to the construction of the new terminal building include: a
new test cell for Garrett Aviation; a common use hangar for general aviation users; an update of
the Airport's master plan; expansion of the existing long-term parking lot; and rehabilitation of the
rental car ready/return lot and extension of the north/south taxiway.
A. NEED FOR THE PROJECT
The Project includes all of the capital improvements the Commission needs to construct or
implement over the next four years. A brief discussion of the need for capital projects that are not
related to the design and construction of the new terminal building follows with a more detailed
discussion of the need for the new terminal building.
1. Garrett Test Cell
The Commission has been in discussions with Garrett Aviation regarding the need to construct a
new engine test cell facility for its use. This project will accomplish that goal and will be leased to
Garrettt Aviation upon completion of construction.
2. Common Use Hangar
Airport management has determined that the amount of available general aviation/corporate
hangars is currently underserved at the Airport. Construction oftms facility will enable the
Airport to accommodate additional corporate/general aviation aircraft at the Airport.
3. LVIaster Plan VpdatelPart 150
This project will update the master plan for the Airport which was last completed in 1987 and the
Commission had a Terminal Area Study completed in 1995, The FAA recommends that airport
sponsors update their master plans every five to ten years. This project will accomplish that goal
and provide the Commission with a planning tool for future development at the airport for the
next twenty years.
Newton & Associates, Inc
Page 3
Preliminary Feasibility Report
4. Long-term Parking Lot Expansion
Existing, parking at the Airport is approaching capacity during peak hours of operation and
customers are forced into the overflow lot when this occurs. This project will pave and mark an
area inside the existing long-term parking lot to provide for approximately 125 long-term parking
spaces to meet the existing demand for automobile parking spaces at the Airport.
5. Rental Car Parking Lot Rehabilitation
The construction firms will use a portion of the future rental car ready/return parking lot for
mobilization and staging during the construction of the new terminal building. After the
completion of the terminal building, the rental car ready/return work will be relocated to the north
end of the new terminal building and this project will provide the necessary parking for the rental
car ready/return spaces.
6. North/South Taxiway
The existing north/south taxiway ends at Taxiway B. This project will extend the existing taxiway
to Runway 8 which will increase capacity at the Airport.
7. Terminal Design and Construction
The existing terminal building consists of three separate structures comprising approximately
52,000 square feet of interior, conditioned space plus an additional 9,000 square feet of covered,
exterior space. The three structures are the main terminal building containing the ticketing and
baggage handling activities, concessions, and general public waiting space. The other two
structures are individual holdrooms, each with its own separate security screening station. These
structures are linked by a series of covered walkways.
In January 1995, with funding assistance from the Federal Aviation Administration, the Board of
Commissioners approved a contract with THE LP A GROUP ("LP A") to prepare a Terminal Area
Study (liT AS "). Preparation of this T AS included the review of existing reports and studies
related to terminal area development including the Airport Master Plan prepared in 1987.
Preparation also included data collection and analysis related to the airport terminal area and
landside development. This datil collection and analysis involved vehicle circulation, carrental
and taxi services, general aviation, terminal building activities and aviation related facilities located
in the airport terminal area. The scope of the T AS was to analyze the Airport's terminal area and
terminal building without limiting the scope of the recommended improvement concepts to
relatively minor renovations.
The goal of the TAS was to provide the Commission with an effective planning tool to guide the
future development of the Airport. The T AS completed an inventory of facilities and complete
demandlcapacityanalysis for the existing facility and for activity levels projected over a twenty
Newton & Associates, Inc
Page 4
Preliminary Feasibility Report
year planning period. The recommended development in the T AS satisfies the forecasted aviation
and passenger demand for the 20-year planning period in an operationally efficient manner.
The major focus of the T AS was on the current inadequacies of the existing terminal building and
the possible future erosion of service level which could occur within the terminal building as the
balance between demand/capacity relationship for facilities became even more inadequate over the
planning period. The T AS was completed in December 1995 and was accepted by the FAA in
March 1996. The Commission has accepted the T AS as the blueprint for future developments at
the Airport.
Since the completion of the T AS, several site improvements recommended in the T AS have been
undertaken. Demolition of two, hotel buildings, construction of two short-term parking lots and
loop road/access improvements were completed in 1997. Extension of the loop road and
construction of a new cargo access road were begun in 1998. The Commission authorized the
start of Schematic Design of the Terminal Building Improvement Program in April 1998.
The preferred alternative from the T AS has further evolved through ongoing analysis, design and
discussions with the Airport, airlines currently serving the Airport and the design team. The
Schematic Design recommended that only the existing administration area of the existing terminal
building and a small portion of the existing rental car structure are planned to remain and
incorporated into the new terminal building. Lastly, the Commission authorized LP A to complete
35% of the design of the Project in June 1999.
B. PROJECT COST AND FUNDING PLAN
As shown in Table II-I, the estimated cost of the design, construction and contingencies of the
Project is estimated to be $26,7 million. Total cost of the terminal building element is $14.3
million including tenant upfit costs of approximately $1.9 million and construction dollars of
$12.4 million. The tenant upfit dollars represent passenger loading bridges and other equipment
and furnishings necessary for the airlines to finish their space upon completion of construction and
will be directly recovered from the airlines. Other Project costs depicted in Table II-I which
include terminal building design, construction management, architectural and engineering work,
apron work, terminal curbfront work and other elements in support of the construction of the new
terminal building amount to approximately $6.2 million.
Other elements of the Project costs that are not attributable to the design and construction of the
new terminal building account for the balance of the total Project cost. These elements and costs
include the following projects: Garrett test cell ($1,000,000); common use hangar ($1,500,000);
master planlPart 150 ($400,000); long-term parking lot expansion ($680,292); rental car parking
lot rehabilitation ($319,166) and the design and construction of the north/south taxiway extension
($2,350,000).
Newton & Associates, Inc
Page 5
Preliminary Feasibility Report
The Project funding plan includes a combination of: (i) Federal Grants-in-Aid (AIP); (ii)
Passenger Facility Charges; and (iii) Local Funding which includes Airport cash from its reserve
deposits, on hand and the Revenue Bonds. A brief discussion of each of these funding sources is
presented in the following section of this Report.
1. Federal Grants-in-Aid
The Airport and Airways Improvement Act of 1982 created a Federal Grant-in-Aid program
known as the Airport and Airways Improvement Program ("AlP"), administered by the FAA and
funded from the Airport and Airways Trust Fund. This fund is financed by means of taxes or user
fees on various aviation activities including passenger tickets, cargo waybills, fuel, oil, etc. ,Grants
are issued to airports under several different programs, two of which are the Entitlement and the
Discretionary programs.' .
Under the Entitlement program, grants are allocated to the airports on the basis of enplaned
passenger levels from two calendar years ago. For example, the entitlements for Federal fiscal
year 2000 (which begins on October 1, 1999) are allocated to airports based on the level of
enplanements each airport had in calendar year 1998, Passenger Entitlement funds are based
upon the following formula:
. $7.80 each for the first 50,000 enplanements;
. $5.20 each for the next 50,000 enplanements;
. $2.60 each for the next 400,000 enplanements;
. $0.65 each for the next 500,000 enplanements; and
. $0.50 each additional enplanement.
Although the future of the AIP is uncl,ear as of the writing of this Report, it was assumed that AlP
funding will be at a level consistent with levels experienced earlier this year. Under the legislation
in effect during the first half of federal fiscal year 1999, the minimum amount each airport is .
entitled to receive is $500,000 and the maximum amount is $22,000,000. As shown in Table II-I
the Commission anticipates using Entitlements in FY 2000 through FY 2002 in the amount of
$3,683,415, or 13,8% of the total estimated cost of the CIP, to reduce the local requirement of
the CIP to the Commission.
Newton & Associates, Inc
Page 6
Preliminary Feasibility Report
TABLE n-l
Augusta Aviation Commission
Augusta Regional Airport at Bush Fleld
Preliminary Feasibility Report
CA.P1TA.L IMPROVEMENT PROGRAM
Estwted
Total Federal LocalFWlding Requirement
Year(s) Description Cost Enlitlement D;,crelionary PFCsII Cash Boods
2000 Garrett Test Cc:1l SI,ooo,ooo SO SO SO SO SI,ooo,ooo
CcmmOll Use Hangar #2 1,500,000 0 0 0 I ,500,000 0
Master PbnlPart ISO 400,000 360,000 0 0 40,000 0
Tenoillll Building Design 530,000 417 pro 0 0 53,000 0
Bi:lding and Negotialitg 5,000 4,500 0 0 500 0
HardSl4nd FinalDesign 40,000 36,000 0 0 0, 4,000
Exterior SigQ;1ge DesignIB i:l 36.500 32,850 0 0 6 3,650
Coocessions Upflt Design 0 0 0 0 ,0 0
Admit A rea Renovations Design 2,750 0 0 0 2.750 0
TOTA1.2ooo SJ,) 14,2)0 $910,3)0 SO $0 $1,)96,2)0 $ I ,OW,6)O
2001 -
2002 Tenoillll Building 2/ SI2,434.951 SI,130,ooo SO S2,OO6.145 SI,ooo,ooo $8.298,806
Tenant Upflt 1,864,814 0 0 0 0 1,864,814
Term iIll I Building Improvements A&E 690.603 375,000 0 0 0 315,603
Curb Road - Construe lion 1,223.950 1,101,555 0 0 0 122,395
Termital Water Lile - Construction 403 ,828 166,510 0 0 0 237,318
LTPrkng Expan -Conslructioo 680.292 0 0 0 0 680,292
RAC Prkg Lot Relulb- Construction 319.166 0 0 0 0 319,166
CoostructA irside Paving 1.205.867 0 0 0 0 1,205,867
Coostrucl Hardsunds 919.218 0 0 0 0 919,218
ConStruCl Exterior Signage 250,000 0 0 0 0 250,000
Concessioos Upflt 500,000 0 0 0 0 500,000
Coosl1lCl US PS/Small Package BkIg 35,100 0 0 0 0 35,100
CoostructAdminArea Renovatioos 27.500 0 0 0 0 27,500
S le/CivilConstruclioo Services 293,000 0 0 0 0 293,000
North/South Txwy AlE - Design 350,000 0 315,000 0 35,000 0
TOTAL2oo1-2002 SZLl9~.289 $Z,173,ll6) $31),000 SZ,006,i4) SI,OJ),UOO SI),069/J79
2003 North/South Txwy AlE -Construclioo $2,000,000 $0 $1,800,000 SO $200.000 $0
TOTAL 2003 $2.000,000 $0 $1,800,000 SO S2oo,OOO SO
TOTALClP $26.712.539 $3.683,415 $2.115,000 $2,006.145 $2.831150 $16,076.729
PERCENT OF TOTAL 13.8% 79% 75% 10.6% 602%
IIlanuary 1,2000 through December 31,2002,
21 Total cost provi:led by LPA's Design Development Cost Eslimates daled November 1999,
Source: Augu.,L:1 A votion Commission wtlessotherwise noled,
~\ICln"I""21r""'\.~I!t'ftIJ'l'."",.
a...nc.:T.U
",,"ftftb.. I. 19P9
Newton & Associates, Inc
Page 7
Preliminary Feasibility Report
The other type of federal funding avaihible to the Commission is discretionary funding.
Discretionary grants are awarded by the FAA on a prioritized bases using a point-value system.
This point-value system provides an objective means to-allow the FAA to determine the highest
level of need for all the airports requesting discretionary funding. It should be noted that these
discretionary funds are not guaranteed to any airport 'and all airports across the country are in
competition for these funds.
As shown on Table II-I, $2,115,000 of Discretionary funds are anticipated by the Commission
over the next four years which will be applied to the design and construction of the North/South
Taxiway project planned for FY 2002 and FY 2003. If the Commissiori.is unable to obtain this
funding for this project some alternative method of funding will need to be attained or the project
will be postponed until some date in the future.
2. Passenger Facility Charges
Pursuant to the Aviation Safety and Capacity Expansion Act of 1990, airport operators may apply
for authorization to impose a PFC of $1, $2, or $3 on enplaning revenue passengers departing
from their airport(s). These PFCs can be used by the airport sponsors with somewhat fewer
restrictions than AIP funds and may be used for any work otherwise AIP eligible. PFCs can be
specifically approved to be used as cash ("pay-as-you-go") or to pay debt service on PFC eligible
projects and pay financing costs associated with the sale of bonds,
The Commission received authorization from the FAA on May 5, 1999 to collect PFCs in the
amount of $3 .00 to fund the terminal construction and rehabilitation previously discussed in this
Report. The Commission has a total of$29,169,803 ofPFCs approved to use on a pay-as-you-go
basis and for the debt service associated with the new terminal building. All airlines that sell
tickets for passengers leaving the Airport began collecting PFCs on October 1, 1999.
As shown on Table II-I, the Commission anticipates using $2,006,145 ofPFCs on a pay-as-you-
go basis for the terminal building construction. The balance of the PFCs approved will be used to
pay PFC eligible debt service associated with the new terminal building over the term of the
Revenue Bonds.
3. Local Funding
The remaining Project costs (after consideration of Federal grants and PFCs ) must be funded
through local sources. Local funds required include cash in the amount of $2,841 ,250 and the
Revenue Bonds in the amount of$16,076,729, It is anticipated that a total of approximately
$18,9 million of local funding will be required over the four year planning period. This amount
represents nearly 70,8% of the total CIP over the planning period.
Newton & Associates, lnc
Page 8
Preliminary Feasibility Report
The Commission currently has no outstanding long-term debt. Based on discussions with Airport
management it is estimated that the Commission will issue Revenue Bonds to fund the
$16,076;729 oflocaI funding required for the CIP.
The following financing assumptions have been employed in this analysis:
.
The Revenue Bonds will be sold on July 1,2000;
The proceeds from the Revenue Bonds will pay for the net cost of the Terminal Project
(project cost less Other Funds), capitalized interest, cost of issuance, insurance and
underwriters fees;
The Revenue Bonds will bear an interest rate of 6.5 percent; ,
PFC revenue will be used to pay the debt service'on that portion of the Revenu~ Bonds
used to pay for those portions of the Project that were approved by the FAA for PFCs, to
the extent that annual PFC collections will support such payment;
The Revenue Bonds will have a 30 year term, with a 28 year principal amortization period
(30 year term less construction period of two years);
Interest will be paid semi-annually, on January 1 and July 1 each year throughout the term
of the Revenue Bonds. The first debt service payment will occur on July 1,2003. Prior to
this date the Capitalized Interest Fund will pay the interest on the outstanding Bond
Proceeds;
Bond Proceeds deposited into the Construction Fund and Capitalized Interest Fund will
earn interest at the rate of 5,5 percent per year, until the funds are expended;
The Commission has never issued Revenue Bonds in the past and the investment
community will require the Commission to establish a Debt Service Reserve Fund. As
such, the maximum annual debt service will be funded with the Revenue Bonds and placed
in a restricted account.
An O&M Reserve Fund representing 25 percent of the O&M Expense requirement in FY
2003 will be collected from the airlines in FY 2000 through FY 2002. Thereafter, 25
percent of the annual increase in O&M Expenses will be collected.
Annual debt service coverage will be 125 percent and will be collected in the first full year
of debt service and rolling coverage will be used in each year thereafter.
.
.
.
.
.
.
.
.
.
Table ll-2 presents the Bond Sizing for the Net ~ocal Funding calculated earlier in this Report
and presented in Table II-I. As shown in Table II-2, the Project will require a bond size of $21. 7
million with average annual debt service amounting to approximately $ 1.7 million.
These assumptions have been adopted to provide a reasonable framework within which to
examine the likely ability of the Airport to generate sufficient cash flow to defray its operating and
capital cash requirements if the Commissi9n proceeds with the Project. These assumptions
provide a conservative approach to determining the feasibility of the Project. If the Commission
were to issue variable rate bonds or double barre! bends where the County's credit and ta.'Cing
authority reduced the risk to the bond holders, the bonds would be issued at a lower interest rate
Page 9
Preliminary Feasibility Report
Newton & Associates, Inc
and the !!'lirimum airline requirement would be reduced as a result of the tower annual debt
service resulting from these alternative financing scenarios.
The actual financing of the project will inevitably vary somewhat from these assumptions and such
variances may materially effect the actual cash flows that will result in the future even if Airport
experiences the growth in traffic estimates contained in this Report.
Newton & Associates, Inc
Page 10
Preliminary Feasibility Report
TA:lL:!: ::-:
Au gusta Avi alion Commission
Augusta Regional Airport at Bush Fleld
Preliminary Feasibil.ity Report
BOND SIZING
(Page I of1)
Descripti:m
Total
$16,712,539
TotalClP (Tabe II-I)
I nfht.xm 11
Total Infhted Project Cost
Pkls:
OlHER FEES
Other A&E Fees 21
Other Contingencies 21
F'll1llncnl PhnninglNegotntions
Total Other Fees
TOTAL PROJ ECTCOST
LESS:
PFCs During Construction (fable II-I)
AlP Funds - Entiement (Table II-I)
AlP Funds - Dilcretionary (Table II-I)
State Grants (Table II-I)
Airport Funds (Tabe II-I)
Other Funds (Table II-I)
Total Other Funding
LOCAL FUNDING REQUIREMENT3!
11 One and one-half years at 3.0 pereent per year.
2J InCluded in ColTlllli<;sion's CIP shown on Table II-2.
3! Local bond funding requirement shown on Table II-2
increased by infhtion.
Source: LPA (Const ruc fun Cost)
Newton & Associates, Inc. (Other)
S I ,202 J)S4
S27 ,914,603
$0
o
250,000
S250,OOO
S28 ,164,603
S2,0c6,145
3,683,415
2.115,(0)
o
2,831,250
o
510,635)310
517528.793
c:\loelUlil.\1 ::orj....~.,.rco1...."
a....: T.b1
H......b.r I. 1999
Newton & Associates, Inc
Preliminary Feasibility Report
Page 11
.,., 0' r."'" .,
"~&i.......... .....-_
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
BOND SIZING
(Page 2 of2)
Descriptbn
Total
Local Fooding Requirement
$17,528,793
PLUS: FINANCING COSTS
Capta6zed Irterest II
Del:t Servi:e Reserve Food
Cost oflssuance 21
$4,225 ,573
1,723,200
433,392
,$6,382,166
lOTALFINANCING COSTS
LESS: Investment Earnings 31
$'1,245,852
lOTALBONDSIZE
$'11,665,107
AVERAGE ANNUALDEBTSERVlCE4I
S I ,722,900
1/ Estimated by NAI at 6.5 percent per year for three years.
7J E~timated by N AI ,at 2 percent of the bond size.
3/lnve~tmert earnings on the Construction Fund and Capta6zed Interest Fund at
5.5 percent for three years.
41 Rounded to the nearest hundred.
30 year tenn at 6.5 percent. Principal amortized over 27 years.
Source: Newton&Assocntes,lnc.
c:\Jot..,...l:Dd....~..n:01.wt:..
bae.: Tab]
NowlDbI, I, 1999
Newton & Associates, Inc
Preliminary Feasibility Report
Page 12
ID. ECONOMIC BASE OF THE AIR SERVICE AREA
The economy of the Air Services Area is relevant to the demand for air service at the Airport and
the Airport's ability to support capital investment. The following is a snap-shot of the Air Service
Area based upon independent statistical sources.
A. Am SERVICE AREA DESCRIPTION
For the purpose of this Report, five counties located in Georgia and South Carolina have been
identified which collectively comprise the Airport's primary air service area. These counties are:
(1) Columbia County, GA; (2) McDuffie County, GA; (3) Richmond County, GA; (4) Aik~n
County, SC; and (5) Edgefield County, SC (collectively referred to herein as the "Air Service
Area"). These counties also comprise the Augusta-Aiken Metropolitan Statistical Area as defined
by the United States Office of Management and Budget.
Although some of the Airport's air service demand may be generated from areas located outside
the Air Service Area, for the purposes of this Report the primary demand for air service at the
Airport is generated by air travelers who either work, reside or visit within the Air Service Area.
B. POPULA TION
According to Sales & lv/arketing Management's 1999 Survey of Buying Power, estimated
population in the Air Service Area has increased from 450,800 in 1995 to 459,700 in 1999,
representing an average annual growth rate of 0,5%. Comparatively, over the same time period,
the population of Georgia has increased at an average annual rate of 2.1 % and the population of
the United States has increase at an average annual growth rate of 1:1 %.
According to the same source, the population of the Air Service Area is projected to increase
from the 1999 level of 459, 700 residents to 474,800 in 2004, representing an average annual
increase of 0,6% over the period. Comparatively, the population of Georgia is projected to
increase at an average rate of 1.7% and the population of the United States is projected to
increase at an average annual rate of O. 9% over the same time period.
C. ElVIPLOYIVIENT
According to the Georgia Department of Labor and the Employment Security Commission of
South Carolina, the number of persons employed in the Air Service Area in 1995 was 188,949.
Total employment in the Air Service Area grew at an average annual growth rate of 0.6% from
1995 to 193,631 employed persons in 1999. Comparatively, total employment in the state of
Georgia over the same period increased at an average annual growth rate of 3.1 %, from
3,440,859 in 1995 to 3,890,195 in 1999,
Newton & Associates, Inc
Page 13
Preliminary Feasibility Report
1. Labo!' Fl)r,=~
The Air-Service Area's total labor force increased from 202,232 in 1995 to 203,701 in 1999,
representing an average annual growth rate of 0.2%. This growth is less than that of both the
state of Georgia (2.9%) and the United States (1.3%) for the same period.
2. Unemployment Rate
During the period 1995 to 1999, the rate of unemployment declined in the Air Service Area, the
state of Georgia and the United States. This annual average rate of decline in the unemployment
rate for the Air Service Area (-6.9%) was greaterthan that of Georgia (-5.5%) and the United
States (-6.6%).
3. Industry Sector Employment
In 1998 the Services industry sector is the largest nonagricultural employment sector in the Air
Service Area (24.2%), the state of Georgia (26.7%) and the United States (29,8%) according to
the United States Department of Labor, - Bureau of Labor Statistics, The Services industry sector
-in the Air Service Area, the state of Georgia and the United States is followed by the Wholesale
and Retail Trade industry sector of employment. From 1990 to 1998, the Transportation and
Public Utilities sector and the Services sector of employment have experienced the greatest
, growth in employment in the Air ServiCe Area. The Transportation and Public Utilities sector
has grown at an average annual rate of 3: 7% and the Services sector has grown at an average
,annual growth rate of 2, 8%, The Construction sector and Manufacturing sector of employment
have experienced declines in employment in the Air Service Area between 1990 and 1998,
declining at average annual rates of 5.4% and 0.4% respectively over that time period.
D. :IN''COME/SALES
Effective Buying Income ("EB I") is the measure of potential purchasing power of a given market
by subtracting personal income tax and other payments (i.e. fines, fees, penalties, etc,) from the
aggregate personal income of the market. The annual average growth rate ofEBI for the period
1995 through 1998 for the Air Service Area (3.1 %) was less than the annual average growth rate
of the state of Georgia (6.4%) and the United States (5.2%), according to Sales and Marketing
Management's Survey of Buying Power:
1. Effective Buying Income Projection
The projected annual average rate ofEBl in the Air Service Area (3,5%) is expected to continue
to grow at a rate lower than that of the state of Georgia (5.3%) and the United States (5.5%)
from 1998 ~hrough 2003,
Newton & Associates, Inc
Page 14
Preliminary Feasibility Report
2. P~r Capita "Effective 'Buying Income
Per Capita Effective Buying Income ("PCEBI") is a measure of individual purchasing power
determined by dividing EBI by the population. For t~e period 1995 through 1998, PCEBI for the
Air Service Area has increased from an estimated $12,659 in 1995 to an estimated $13,654 in
1998, representing an average annual growth rate of2.6%. The growth rate in PCEBI for the Air
Service Area w~s less than both the state of Georgia (4.2%) and the United States (4.1 %) over
the same period.
The projected annual average growth rate ofPCEBI in the Air Service Area (3.5%) is 'expected to
continue to grow at a rate lower than that of the state of Georgia (5.3%) and the United States
(5.5%) from 1998 through projected 2002.
3. Retail Sales
The rate of growth in total annual retail sales in the Air Service Area was less than the state of
Georgia and the United States, during the period 1994 through 1998 according to Sales and
Marketing Management's Survey of Buying Power. The annual average growth rate in retail
sales for the Air Service Area was 3.4% for the period compared with the state of Georgia (6.9%)
and the United States (6.7%).
According to the same source, retail sales within the Air Service Area are projected to increase at
an average annual growth rate of 3.7% between 1998 and 2003. The projected rate of growth in
retail sales in the Air Service Area is less than the projected average annual groWth rate for the
state of Georgia (5.9%) and the United States (4.5%).
Newton & Associates, Inc
Page 15
Preliminary Feasihility Report
IV. AIR TRAFFIC ANALYSIS
The principal determinant of a commercial airport's ability to be financially self-sufficient is the
number of passengers that use the Airport. Passengers create the demand necessary for airline
service which translates directly into airline activity and airport revenues. Airlines pay landing
fees, terminal rentals and other user fees for the right to pick up and discharge passengers and
their baggage at the Airport. Passengers spend money to park and rent automobiles and to
purchase food, beverages and merchandise from airport concessionaires; all of this activity
generates operating revenues for an airport., Because of this relationship. between passengers and
airport revenues, the future financial strength of the Airport and the reasonableness of the charges
to the airlines that serve the Airport will depend in large. measure upon the relationship between
the cost of operating the Airport, including the cost of servicing Airport debt, and the future
demand for passenger air service at the Airport. This in turn will depend upon, among other
things, the strength of economic activity in the Air Service Area and the ability of the Airport to
provide adequate facilities to meet the demands of the traveling public for commercial air service
by the airlines serving the Airport.
A. LEVEL OF EXISTING SCHEDULED PASSENGER AIRLINE SERVICE
The Airport is classified as a non-hubl airport under FAA enplanement criteria. The Airport is
currently served by one major airline, Delta Air Lines, Inc. (Delta) and two regional airlines:
Atlantic Southeast Airlines, Inc, or ASA(d/b/a The Delta Connection) and CCAir, Inc. (d/b/a US
Airways Express).
Although Delta departures account for less than 20% of total airline d~partures, the percentage of
available seats in the market on Delta's jet aircraft is over40%. This is the result of the smaller
regional jet and turboprop aircraft utilized by the regional airlines, all seating less than 70
passengers, when compared to the over 140 seats available on the larger Delta jet aircraft.
B. HISTORICAL PASSENGER TRAFFIC
Enplanements are passengers who board aircraft at the Airport and deplanements are passengers
who disembark aircraft at the Airport. ,At a non-connecting (Origin and Destination) airport the
number of enplanements are generally the same as the number of deplanements which has been
the case at the Airport over the Study Period, As a result, NAI has focused its study on the
historical growth in enplanements.
1 A non-hub airport is defined by the FAA as enplaning at less than .05% of the totalnulIIber of US
Passenger enplanements. In 1998, 218,541 passengers boarded commercial passenger aircraft at the Airport
representing 0.037% of the 590,200,000 passengers that boarded commercial passenger aircraft during the same
time period.
Newton & Associates, Inc
Page 16
Preliminary Feasibility Report
Total enplaned passengers at the Airport have remained relatively flat during Calendar Year
("CY") 1987 through CY 1998, decreasing from 220,295 in 1987 to 218,541 in 1998, which
represents an average annual decline of 0.1 %. Comparatively, the total number of passengers
boarding aircraft in the United States increased from approximately 416 million in 1987 to over
590 million in 1998 representing an average annual growth rate of3.2% over this time period.
Over the last three years however, the total number of enplaned passengers at the Airport grew at
an average annual growth rate of2.4% which is nearly twice the average annual growth rate
experienced in the United States over this time period.
The Airport's percentage of the United States domestic enplanements has fluctuated between
1987 and 1998, The lowest percentage over the time period was 0.036% in CY 1996 and,CY
1997 and the highest was 0.058% inCY 1992. The Airport's percentage of United States
enplanements in CY 1998 was 0.037%.
1. Historical Passenger Enplanements and Airline Market Share
Total passenger enplanements have fluctuated over the reporting period. Total airline
enplanements decreased from 1994 to 1996, representing an average annual decline of 3.0%.
However, total airline enplanements have increased each year in the ensuing period, from 198,726
in 1996 to 218,541 in 1998, representing a average annual growth rate of 4, 9% in that, the most
recent period.
Of the scheduled airlines serving the Airport during this period, Delta Air Lines has consistently
held the largest share of enplaned passengers at the Airport, enplaning 55.6% of all enplanements
at the Airport in 1998. However, Delta has experienced an overall reduction in enplaned
passengers over the reporting period, decreasing at a annual rate of 4.3%. Most of that decrease
occurred in the 1994 to 1996 time period when Delta lost an aggregate 16.2% of its enplaned
passengers. During the 1996 to 1998 growth period noted above, [)elta's passenger
enplanements remained relatively flat, while those of the regional carriers increased.
c. COMPETING AIRPORTS
Air travelers have a choice in selecting an airport. Air travelers who either live, work or visit the
Air Service Area or surrounding areas have alternative airport options to meet their air
transportation needs, causing a "Iea~age" of passengers to other airports, Generally,
discretionary, leisure oriented air travelers who are very price sensitive are more likely to utilize
alternative airports that offer discounted air service.
There are many airports that compete with the Airport for the Air Service Area's air travelers.
However, there are the two airports that are considered to attract the most of the Air Service
Area's air travelers are Hartsfield Atlanta International Airport and Columbia Metropolitan
Airport."
Newton & Associates, Inc
Page 17
Preliminary Feasibility Report
1. Hartsfield Atlanta International Airport
Hartsfield Atlanta International Airport ("ATL") is the largest airport in the world in terms of
enplaned passengers and is the primary connecting passenger hub for Delta Air Lines. ATL is
considered to be the Airport's primary competitor and the source of most of the Air Service
Area's passenger leakage. During 1998, ATL enplaned 73.5 million passengers. ATL is located
approximately 160 miles west of the Airport. Direct interstate access to ATL is available via 1-20.
The estimated drive time between the Airport and A TL is two and one-half to three hours.
2~ Columbia Metropolitan Airport
Columbia Metropolitan Airport ("CAE") is the Airport's closest commercial service airport
competitor. CAE is located approximately 85 miles northeast of the Airport. Direct interstate
access to CAE is available via 1-20. The estimated drive time between the Airport and CAE is
one to two hours.
D. ESTIMA TE OF AVIATION ACTIVITY
Past aviation activity, is often a useful guide in estimating future aviation activity. NAI has
reviewed the historical passenger enplanements at the Airport for an 11 year period from CY
1987 through CY 1998. Passenger enplanements declined at an average annual rate of 0.1 % over
the period.
The Airport's five year historical enplanement activity has been reviewed to identifY more current
trends in the growth of passenger enplanements at the Airport. Passenger enplanements at the
'Airport have grown over the last five years by-an ,average annual growth rate of 0.9% from 1994
through FY 1998. However, total airline enplanements have increased at an average annual rate
of4.9% from 1996 through 1998.
Forecasts of aviation activity at the Airport are available, The FAA Airport Program Offices
(APO) performs an annual forecast of enplanements known as the Terminal Area Forecasts
("T AF") for all airports included in the National Plan ofIntegrated Airport Systems ("NPIAS")
For the Airport, this forecast (utilizing a FY 1998 base) forecasted enplanement g'rowth rates of
less than 3.0% per annum. Another source of enplanement forecasting is provided in the Airport
Master Plan / Terminal Area Study performed by theLPA Group, Inc., and dated December
1995. At that time, enplanements were forecasted to grow at rates between 3.1 % and 3.9%.
With the preceding considerations and forecasts in mind, and for the purpose of this Report, NAI
has adopted an average annual growth rate of total passenger enplanements at the Airport of
1.5% per year to test the future ability of the Airport to generate nonairline revenues and airline
rates and charges sufficient to support the Airport's operating, maintenance and capital
obligations. Should the Commission,and the Augusta Commission elect to proceed further with
the Project a detailed Financial Feasibility study will need to be prepared which includes forecasts
Newton & Associates, Inc
Page 18
Preliminary Feasibility Report
offhture aviation activity, This will be based upon an in-depth evaluation of the economy of the
Air Service Area and other relevant factors observable at that time. .
Newton & Associates, Inc
Page 19
Preliminary Feasibility Report
v. F:lN"ANCIAL ANALYSIS
The purpose of this Section of the Report is to assess the likely ability of the Airport to support
the Project. The Airport's ability to generate future revenues sufficient to cover estimated future
operating expenses, any existing and new debt service and other funding requirements at the
Airport have been examined as follows:
· The Commission's existing financial structure was examined to determine its primary
revenue generating'sources as well as its major expense categories;
· Based on the review of the historical expense and revenues accounts, estimates of fPture
revenues and expenses as they relate to the operation of the Airport were made taking into
account any increases in revenues or reduction in expenses as a result of the Project;
· Based. on the estimate of revenues and expenses and the amount of additional debt service
resulting from the issuance of the Revenue Bonds, the minimum airline requirement was
calculated and presented in an airline cost per enplanement figure. The minimum airline
requirement represents the lowest amount the Commission must charge the airlines
operating at theAirport fonhe Commission to operate on a break-even basis. If the
Commission is able have the airlines agree to a more advantageous business deal, these
additional revenues will become net income to the Commission; and
· Based on the minimum airline requirement, an analysis of the Commission's future cash
flow was developed to estimate net remaining revenues available each year tothe
Commission to meet the capital costs of the Project. For the purposes of this Report it
was assumed that the Commission would charge the airlines 1.25 coverage in the first year
ofDBO and use rolling coverage thereafter.
A. HISTORICAL FINANCIAL ANALYSIS
The Commission (and County's) fiscal year is the same as the calendar year. Revenues and
expenses are recorded on an accrual basis; under this basis, revenues are recorded when they are
earned and expenses are recognized when they are incurred. The historical performance from
January 1, 1995 through an estimated total for December 31, 1999 was examined to determine
the major expense and revenue categories attributable to the Airport' and to determine any
identifiable trends over this time p'eriod. It should be noted that for'the budget in 1999 the
Commission began allocating O&M expenses to different functional areas or departments at the
Airport. As a result the O&Mexpenses are analyzed from 1995 through 1998 with a discussion
of the new O&M expense allocation methodology implemented by the Commission in 1999.
Newton & Associates, Inc
Page 20
Preliminary Feasihility Report
1. Historical Operating and Maintenance Expenses
Historical operating and maintenance ("O&M") expenses are depicted in Table V-I. As shown in
Table V-I, O&M expenses have increased from $4,785,614 in 1995 to $5,494,201 in 1998
representing an average annual growth rate of 4. 7%. The Cost of Sales of aviation fuel was the
largest component of the Commission's total O&M expenses in 1998 representing 35,9% of the
total. Salaries and benefits for employee staff at the Airport was the next largest component of
O&M expenses representing 30.8% of the total in 1998. The Commission has been in the process
of refining its financial reporting activity and O&M expenses have not been consistently
accounted for in the same accounts over this time period. As a result, a direct comparison of
O&M expenses by line item is not possible. .
As previously mentioned, the Commission began assigning O&M expenses to 11 different
departments for its budget in 1999 in an effort to: (1) identify profitable and unprofitable cost
centers at the Airport and (2) to establish a mechanism for which the Commission could establish
an airline rates and charges methodology based on cost recovery rather than the methodology
currently in place at the Airport. The following provides a brief discussion of the 1999 budget
O&M expenses to the 11 different departments and the subsequent allocation of O&M expenses
to the five different cost centers at the Airport
Table V-2 presents the budget 1999 O&M expenses assigned to the 11 different departments at
the Airport. As shown in Table V-2, the FBO-Aviation Services department has $3,633,106 of
O&M expenses assigned to it in budget 1999 which is the highest amount of O&M expenses
assigned to any department at the Airport, representing 50.3% of the Commission's total budget
in 1999. The Inventory/Cost of Sales line item accounts for the largest component of total O&M
expenses assigned to this department which represents the Commission's cost of aviation fuel
which it sells through the FBO at the Airport. .
Once the O&M expenses are assig'ned to the various departments depicted in Table V-2, the .
Vehide Maintenance department is allocated to the different departments at the Airport based on
Airport management's estimate of personnel time attributable to each department. Table V-3
depicts the allocation of Vehicle Maintenance to the six different departments at the Airport and a
summary of the O&M expenses assigned to the remaining ten departments at the Airport for
budget 1999.
After the 0&1\1 expenses are allocated to the 10 departments, these departments are then
allocated to the ~ve direct cost centers at the Airport. The five direct cost centers are: (1)
Airfield, (2) Terminal, (3) Parking/Ground Transportation, (4) FBO-Aircraft Services, and (5)
Other Property. Table V-4 presents the allocation of O&M expenses from the departments to
the five direct cost centers for budget 1999 at the Airport based on the following allocation
percentages:
Newton & Associates, lnc
Page 2 I
Preliminary Feasibility Report
Parking/Ground Other
Airfield Terminal Transportation FBO Prooerty
Administration 40% 30% 5% 20% 5%
Finance 40% 30% 5% 20% 5%
Marketing 40% 30% 5% 20% 5%
Airside 90% 10% 0% 0% 0%
Property
Maintenance 40% 40% 0% 10% 10%
ARFF 85% 6% 3% 3% 3%
Security 6% 85% 3% 3% 3%
Custodial 0% 80% 0% 10% 10%
Landside
Maintenance 0% 50% 20% 10% 20%
FBO Aircraft
Maintenance 0% 0% 0% 100% 0%
The Commission will continue to monitor the allocation of O&M expenses to direct cost centers
and the above allocations are subject to future revisions.
Table V-5 presents a summary ofO&M expenses by cost center and the capitalexpenses
allocated to each cost center for budget 1999.
2. Historical Revenues
Historical revenues from 1995 through an estimated total for 1999 are depicted in Table V-6.'
Revenues are categorized as either airline revenues or nonairline revenues, the former being
generated by the air carriers operating at the Airport and the later from all other revenue
generating sources at the Airport.
As shown in Table V -6 airline revenues have decreased from $649,600 in 1995 to an estimated
$622,597 in 1999, representing an average annual rate of decline of 1.1 % over this time period.
The primary reason for this decline is lower landing fees paid by the airlines as a result of the
reduction in the type of aircraft serving the Airport and a fixed landing fee rate during this time
period. Nonairline revenues have increased from $5,162,303 in 1995 to an estimated $6,662,267
in 1999, representing an average annual growth rate of 6.6% during this time period. Total
revenues at the Airport have increased from $5,811,903 in 1995 to an estimated $6,626,267 in
1999, representing an average annual growth rate of3.5% during this time period,
Newton & Associates, Inc
Page 22
Preliminary Feasibility Report
Historical revenues will be discussed at greater length in the estimate of nonairline revenues later
in this Section of the Report.
B. O&M EXPENSE ESTIMATE
A summary of the O&M expense estimates is presented in Table V-7. Significant assumptions
regarding the estimate of O&M expenses are as follows:
· No additional personnel are programmed to be added as a result of the Project;
· The Commission will experience an O&M expense savings in the new tenninal facility as a
result of more efficient electrical and HV AC systems which will be installed in.the new
tenninal building in addition to ot~er efficiencies Airport management anticipates as a
result of the Project. As a result, O&M expenses at the Airport were not increased
between 2002 and 2003 to account for these O&M expense savings Airport management
anticipates as a result of the Project. 2; and
· The Commission's budget 2000 O&M expenses were increased by 4.0% per year.
As shown in Table V-7, O&M expenses are estimated to increase from $7,209,540 in 2000 to
$9,156,813 in 2007, representing an average annual growth rate of3,5%.
Table V-8 allocates the total annual debt service amount calculated in Section II of this Report to
the various cost centers, loading bridges and tenant upfit charges based on the prorata share of the
bond proceeds for each category. The last two categories of debt service (loading bridges and
tenant upfit) will be directly recovered from the airlines and the balance of the annual debt service
will be paid from Airport revenues.
C. NONAIRLINE REVENUE 'ESTIMA TES
As previously presented in Table V-6, revenues at the Airport include airline and nonairline
revenue. Nonairline revenue estimates are depicted on Table V-9. Significant assumptions used
in estimating future nonairline revenues include the following:
· Nonairline revenues assigned to the FBO-Aviation Services cost center comprise those
revenues associated with the Commission's operation of the Airport's only'FBO.
Historical nonairline revenues in this cost center increased from $3,426,204 in 1995 to an
estimated $4,509,935 in 1999 representing an average annual growth rate of8.3%, The
major reason for this growth in these revenues is attributable to the increase in aviation
2 The PILOT charge from the County is anticipated to increase by$43,360 from 2002 to 2003
representing t.1l~ increased tax value of the new t.erminal building as a result of the Project
Newton & Associates, Inc
Page 23
Preliminary Feasibility Report
"
fuel sales which grew at an average annual growth rate of 7.1 % during this same time
period and the fact that this line item represents approximately 93.0% of the total revenues
attributable to this cost center.
These revenues are anticipated to increase by 3.0% per year to account for increases in
price. In addition, the aviation fuel sales and oil sales are anticipated to increase by the
2% annual growth of general aviation operations anticipated from 2000 through 2007. As
shown in Table V-9, nonairline revenues in the FBO-Aviation Services cost center are
anticipated to increase from $4,511,681 in 2000 to $6,353,320 in 2007 representing an
average annual growth rate of 5.0%,
· Nonairline revenues in the Terminal cost center primarily consist of those rental payments
and concession fees paid by tenants other than airlines located in the terminal buildint.
These revenues increased from $65,363 in 1995 to an estimated $165,228 in 1999
representing an average annual grO\vth mte of26,1 %. The reason for this high rate of
growth is the result of the Commission identifYing rental car terminal rental as a separate
line item in 1998. Excluding the terminal rental car revenue line item, these nonairline
revenues have remained relatively constant over the Study Period,
Nonairline revenues in the Terminal cost center are anticipated to increase by 1.0% per year
to account for inflationary increases in price. In addition, all concession revenues (excluding
miscellaneous concessions) are anticipated to increase by the 1.5% annual growth of
enplanements during the years examined. It is anticipated that the new concourse concept
will enhance the retail concessions for the Commission based on improved design and
location of facilities. As shown in Table V-9, Concessions - New Terminal Gift revenues
are anticipated to be $20,000 in 2003 (DBO) and increase moderately to $23,208 in 20.07.
Totalnonairline revenues in the Terminal cost center are anticipated to increase from
$163,400 in 2000 to $204,295 in2007, representing an average annual growth rate of3.1%.
· Nonairline revenues in the Parking/Ground Transportation cost center consist of parking
and rental car concessionfees, taxi revenue and rental car service facilities ready return
spaces. Historically, these revenues have increased from $1,266,543 in 1995 to an
estimated $1,469,199 in 1999, representing an average annual growth rate of3.8% during
this time period. Annual increas~s in the parking revenue and rental car commissions are
, primarily responsible for the increase in nonairline revenues attributable to this cost center
increasing by 4.7% and 3,2% per year, respectively, over the Study Period.
Nonairline revenues are estimated to increase by 1.5% per year to reflect annual increases in
prices and/or fares from 2000 through 2007. In addition, the concession revenues in the
Parking/Ground Transportation cost center (parking, taxi and rental car concession
revenues) are also estimated to increase e:1ch ye:1f by the 1.5% gro\\1h of enplanements
3 Excluding rental car operators' concession fees which are assigned to the Parking/Ground
Transportation cost center.
Newton & Associates, lnc
Page 24
Preliminary Feasibility Report
from 2000 through 2007. As shown in Table V-9, nonairline revenues in the
1)..._1..:__/~.._,._,.J T......t...(".....t"'\.,-+"t;f"'\t"'l .....""'s. .....o....,to... ..,.,..0 oC't;..,..,,,h:~rt tf"\ :n,......o~c:~ fr('\"., <1::1 ail ~O();n
..L ""'1. 1'-1.1'51 Ui V U.t. J.\,J. ...... """"....!-"'v.. ~"""l,.'V4' ......v """...,~..~"""'. ""'".... .......11..&""._......_ ..v........" ..._....... ..... --:.... ..."..., . , ...,:.... .., ....
2000 to $1,811,153 in 2007 representing an average annual growth rate of3.0%.
· Nonairline revenues not assigned to any of the above referenced cost centers are assigned to
the Other Property cost center. These revenues primarily consist of general aviation leased
hangars, hotel commission and other prop~rty rental and historically have increased from
'$279,743 in 1995 to an estimated $516,159 in1999, representing an average annual growth
rate of 16.5% during this time period. The primary reason for this significant growth rate in
these nonairline revenues is ~ result of additional facilities being leased by Garrett Aviation
and Morris Communications in 1997 and 1998, respectively. Excluding these two additional
revenue sources, the nonairline revenues in this cost center have remained relatively flat.
Existing nonairline revenu~s in'this cost center are estimated to remain flat during from 2000
through 2007 with the exception of the Garrett Aviation lease revenues which have been
increased at the rate of 1.4% per year which is consistent with the existing leases with this
tenant. In addition, there are two new hangar facilities which will be included as part of the
Project. As a result the Commission will collect additional revenues in this cost center based
on recovering the capital cost of constructing these new facilities. These additional
revenues were estimated by increasing the construction amount of the new facilities by 20%
to account for the financing costs associated with issuing the Revenue Bonds and amortizing
that total over 15 years at the anticipated interest rate of the Revenue Bonds. It is further
assumed that these new facilities will be constructed and occupied no later than 2003. If
they were completed earlier, these revenues would be available to the Commission prior to
2003 and would reduce the amount of the minimum airline requirement accordingly. As
shown in Table V-9, nonairline revenues in this cost center are estimated to increase from
$536,817 in 2000 to $897,418 in 2007, representing an average annual growth rate of7.6%
As shown in Table V -9, total nonairline revenues are estimated to increase from $6,835,967 iri 2000
to $9,413,996 in 2007, representing an average annual growth rate of 4, 7% over this time period.
These estimates provide a reasonable expectation of future nonairline revenues which can be
generated at the Airport over this time period given the historical growth rate of nonairline revenues
of7.8% from 1995 through 1999 and the additional nonairlinerevenues which will be generated as
a result of the Project. The following Section of this Report will discuss the annual minimum airline
requirement to determine the feasibility of the Project.
D. MINJl\tIUM AIRLINE REQUIREMENT
Estimates of O&M expenses, nonairlinerevenues and an estimation of the debt service requirement
as a result of the Project have been previously calculated and discussed in this Report. The annual
airline rates and charges is the last revenue generating component at the Ajrport which will be
examined to determine if the Airportca'1 generate sufficient revenues to support the Project. This
Section of the Report will determine the annual amount of rates and charges which will be required
from the airlines operating anhe airport, This determination is made based on the minimum airline
Newton & Associates, Inc
Page 25
Preliminary Feasibility Report
requirement resulting from the Project expressed as an airline cost per enplanement ("CPEP")
figure.
Significant assumptions used in calculating the airline CPEP are as follows:
· ' O&M Reserve Requirement was calculated based on three months (25 percent) of the total
O&M expenses at the Airport in 2003 collected in 2000 through 2003. Once the O&M
Reserve Requirement is funded in 2003, 25 percent of the incremental increase in total
O&M expenses is deposited into the O&M Reserve Fund.
· Annual deposits to a Renewal and Replacement and a Discretionary Fund were est~blished
in the amounts of$150,000 and $100,000, respectively. These deposits will be available to
allow the Commission to pay for any unforeseen capital expenditures, repairs, .funding for
the Daniel Field airport or any lawful purposes required.
· This analysis assumes that PFC revenues will be depositeq to the Construction Fund during
the construction period. "Once construction is completed, PFC revenues will be used to
reduce the PFC eligible debt service associated with the Revenue Bonds. The PFC eligible
portion of the debt service is estimated at 90% of the terminal construction amount which
would allow the Authority to use PFCs to pay up to an estimated $1.4 million each year.
Should PFC revenues ever exceed this amount in any given year, the Commission will need
to place these "surplus" PFC revenues into a defeasance fund to retire the PFC eligible
portion of the Revenue Bonds at the earliest possible date or to use for other PFC eligible
projects approved in subsequent PFC applications.
Although PFC revenues will not equal the estimated PFC eligible portion through 2007,
PFCs will reduce the total requirement by $669,311 in 2003 (DBO) up to $656,217 in 2007
based on the 1,5% growth of enplanements over this time period.
The airline cost per enplanement (CPEP) is presented in Table V-tO, Based on the data and
assumptions listed in this analysis, the "airline ePEP for 2003 (the year ofDBO) is estimated to be
$7.25 as depicted in Table V-to. This would equal a $6,32 airline CPEP in 1999 discounting the
2003 airline CPEP for four years at 3: 5%,
If enplaned passengers at the Airport increase as expected, the airline CPEP will decrease over time
due to the increased enplanement base. In 2007, five years past DBO, the airline CPEP is estimated
to be $5.16 or $3.92 airline CPEP in 1999 dollars,
E. SURVEY OF OTHER AIRPORTS' COST PER ENPLANEMENT
Table V-II presents the airline cost per enplanement, enplanements, and airline revenues for
non-hub airports located in the Southeastern portion of the United States as reported in the AAAE
Survey of Airport Rates and Charges 1997/1998. Also shown in this table is the average and
median airline CPEP for all the airports depicted in Table V-II. The purpose of this table is to
Newton & Associates, Inc
Page 26
Preliminary Feasibility Report
provide a baseline comparison to the reasonableness of the resulting airline requirement calculated
in the previous section.
As shown in Table V-II, the 1997 average airline CPEP for the airports listed in Table V-II is
$4.09 and the median airline CPEP is $4.17. Inflating these 1997 airline CPEP by 3.5% to 1999
results in an average airline CPEP of$4.39 and a median airline CPEP of$4A6 for the airports
listed in Table V-II.
As previously shown in Table V-10, the average CPEP at the Airport is estimated to be $5.16 in
2007 or $3.92 average airline CPEP in 1999 which is lower than both the average and median
airline CPEP shown in Table V-II for the same time penod (1999).
F. PROFORl\1A CASH FLOW
The proforma cash flow for the Airport for 2000 through 2007 is presented in'Table V-12. As
shown in Table V -12, total revenues consist of airline revenues, nonairline revenues, and PFC
revenues. Total revenues are decreased by O&M expenses to calculate net revenues. Net revenues
are further reduced by estimated required fund deposits, capital expenditures and total Airport debt
service to determine the net remaining revenues.
Also shown in Table V -12 is the estimated debt service coverage for each year. It was assumed for
this analysis that the Airport would need to demonstrate 125% debt service coverage in each fiscal
year in conjunction with the Revenue Bonds. As shown in Table V-12, debt service coverage
exceeds thel25% in every year as a result of Net Revenues generated in each year when combined
with the rolling coverage transfer, in each year. For the purposes of this analysis, we expect that the
Authority will be able to meet its debt service coverage requirement based on the assumptions,
contained within this Report.
G. CONCLUSIONS
Based upon the assumptions and our analysis presented in this Report, it is reasonable to expect
that the Airport will produce sufficient revenues to pay for the annual expense of operating the
Airport, pay for the debt service estimated for the Revenue Bonds, and to cover all of the
nonoperating expenses and funding requirements at the Airport over the time period examined.
This is based upon the following assumptions:
1. The total cost of the Project will not exceed $26,8 million as depicted in Section II of the
Report and the Commission will be able to 'secure the AIP, PFC and local cash funding to
reduce the local funding requirement approximately $16,} million,
2. The Revenue Bonds will not exceed a par amouot of approximately $21.7 with annual debt
service amounting to $1,7 million.
Newton & Associates, I/lC
Page 27
Preliminary Feasibility Report
3. The PFC program will not be terminated by the FAA and the Commission will not violate
any of the assurances associated with the PFC regulations which would cause the FAA to
tenninate the Commission's authority to collect and use PFCs in the future.
4. The economic base of the Air Service Area will grow at levels of approximately one-half
the growth expected for the state of Georgia and the United States.
5. Airlines will continue to serve the Airport and enplanements at the Airport will grow at an
average annual growth rate of 1.5% from 2000 through 2007.
6. A component of total O&M expenses at the Airport is the County Overhead charge of
$200,000 in 2000 which has been increased by 3.5% each year as described in;Section Vof
this Report. The ability of the Airport to be financially self sustaining could be threatened
should this line item or annual increases in other O&M expenses at the Airport exceed these
estimates.
7. Nonairline revenues at the Airport were estimated to increase by approximately 4.7% per
year which includes revenues for the Garrett Aviation test cell and the new Common Use
Hangar for general aviation users. We have assumed that the Commission will not construct
these new revenue generating facilities unless there is sufficient demand to recover the
capital and operating costs associated with the new facilities as previously discussed in this
Section of the Report.
8. The Commission will be able to negotiate an airline agreement or set airline rates and
charges through a City or County resolution which will generate the minimum airline
requirement presented in this Section of the Report.
Subject to the foregoing and the assumptions contained in this Report we believe the Airport should
be able to continue to be financially self sufficient in the future, Because of the relatively weaR
economic base of the Air Service Area, however, along with competition from Atlanta and
Columbia, the Airport will likely remain vulnerable to fluctuations in economic conditions and
market forces. We believe the Airport is a vital economic tool of the Augusta area and the Project,
especially the Terminal component, is a much needed enhancement of the Airport, thus we conclude
that the Commission should pursue all reasonable measures of obtaining the Project.
If the Commission proceeds to attempting to sell Revenue Bonds based solely on Airport Revenue
to fund the Project, the investment community may wish to impose financial constraints on the
Commission and the Augusta Commission in conjunction with the issuance of the Revenue Bonds.
Newton & Associates, Inc
Page 28
Preliminary Feasibility Report
Table V.I
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
HISTORiCAL OPERATING EXPENSES
(Page 1 of 1)
Actual Actual Actual Actual
1995 1996 1997 1998
Professional Membership Dues $4,512 $5,698 $4,018 $6,746
City Directory 143 0 0 0
Subscriptions 0 0 2,453 4,078
Books 0 0 319 1,463
Insurance 51,201 41,685 47,970 46,233
Benefit Payments 0 0 0 o.
Rent-Equipment 0 0 4,357 8,031
Accounting & Audit Services 0 0 3,000 0
"Financial Audit 3,592 3,821 0 0
Special Audit Services 5,394 0 0 0
Other Legal Counsel Services 9,979 12,079 0 4,594
Guard Service 205,104 237,095 0 0
Janitorial Services 119,351 223,164 0 0
Extermination Service 7,118 5,594 0 0
Waste Disposal Service, 17,109 20,153 0 0
Architect Services 0 0 2,125 (563)
Other Contract Services 1,446 4,444 713,359 617,748
Background Music 1,370 1,446 0 0
Indirect Cost Allocation 0 132,000 134,580 135,000
Other Miscellaneous Charges 0 0 6,187 6,668
Sales Tax Payments 119,874 136,831 0 0
Federal Tax Payments 658 4,617 0 0
Federal Floor Stock Tax 0 0 29,894 0
TOTAL OPERATING EXPENSES: $4,785,614 $5,537.481 $5,585,183 $5,494,201
Source: August Aviation Commission
Compiled by Newton & Associates, Inc,
c;\Iouu.itC\...\botuIs\hisl.fin.w~4 cca
Ranao: N<wcmberJ.I999
Newton & Associates, Inc.
Table V-2
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
O&M EXPENSES BY DEPARTMENT
(page 1 of 7)
FUNCTIONAL AREA
Budget
1999
ADMINISTRA nON
Salaries & Wages - Reg
Salaries & Wages - Overtime
Marketing Commissions
Car Allowance
FICA
Health Insurance
Uniforms
Office Supplies
Data Processing Supplies
Operating Supplies
Copy Supplies & Svcs.
Small Equipment
Non-recurring Supplies
Program Supplies
Equipment Maintenance
Vehicle Maintenance
Gas and Oil
Telephone
Postage
Printing
Advertising
Cellular Phones (County reclass)
Training & Conferences
Pro[ Membership Dues
Meals & Entertainment
Subscriptions
Books
Insurance
Benefit Payments
Accounting & Auditing
Other Legal Svcs,
Other Contract Svcs.
Other Misc, Charges
PILOT
County Overhead
TOTAL ADMINISTRATION
$371,133
3,247
15,000
2,400
28,640
40,825
200
7,000
2,500
2,520
6,500
o
7,000
2,000
6,000
6,000
3,600
32,000
3,100
4,275
85,600
400
14,900
8,200
o
2,300
600
60,000
50,000
8,000
10,000
120,000
5,000
33,600
200,000
$1,142,539
Bush Field Airport
c:\...\ags\bug-pos. WK4 ccg 11/15/99
Newton & Associates, Inc.
Table V-l
Augusta Aviation Commission
Augusta RegionalAirport at Bush Field
Preliminary Feasibility Report
O&M EXPENSES BY DEPARTMENT
(Page 2 of 7)
FUNCTIONAL AREA
Budget
1999
FINANCE
Salaries & Wages'. Reg
Salaries & Wages. Overtime
FICA
Health Insurance
Telephone
Postage
Training & Conferences
TOTAL FINANCE
$112,420
12,366
9,546
12,366
o
o
o
$146,699
MARKETING
Salaries & Wages - Reg
Marketing Commissions
Car Allowance
FICA
Health Insurance
Unifonns
Office Supplies
Data Processing Supplies
Operating Supplies
Telephone
Postage
Printing
Advertising
Training & Conferences
Prof. Membership Dues
Meals & Entertainment
Subscriptions
Books
$0
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
$0
TOTAL MARKETING
AIRSIDE
Saiarit:.s & Wages. Reg
Salaries & Wages - Overtime
FICA
Health Insurance
Unifonns
Safety
Operating Supplies
Shop Supplies
Small Equipment
Grounds Maintenance
Pavement Maintenance
Equipment Maintenance
Vehicle Maintenance
Other Maintenance
Telephone
Rent - Equipment
Other contract svcs.
$102,585
11,284
8,711 _
11,284
800
300
1,000
, 6,000
o
40,000
o
o
15,500
7,060
o
600
20,000
$225,125
TOTAL AIRSIDE
Bush Field Airport
c:\...\ags\bug-pos. WK4 ccg 11/15/99
Newton & Associates, Inc.
Table V-2
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
O&M EXPENSES BY DEPARTMENT
(Page] of 7)
FUNCTIONAL AREA .
Budget
1999
VEHICLE MAINTENANCE;
Salaries & Wages - Reg.
Salaries & Wages - Overtime
FICA
Health Insurance
Uniforms
Safety
Water
Electricity
Natural Gas
Operating Supplies
Small Equipment
Equipment Maintenance
Vehicle Maintenance
Other Maintenance
Gas and Oil
Telephone
Training & Teleconferences
Books'
Charges for Veh. Maint.
TOTAL VEHICLE MAINTENANCE
$155,461
17,101
13,201
17,101
2,000
200
o
o
o
7,000
o
o
12,000
o
17,400
o
100
200
100
$241,863
PROPERTY MAINTENANCE (BUILDINGS)
Salaries & Wages - Reg.
Salaries & Wages - Overtime
FICA
Health Insurance
Uniforms
Safety
Utilities
Water
Electricity
Natural Gas
Operating Supplies
Shop Supplies
Small Equipment
Building Maintenance
Vehicle Maintenance
Other Maintenance
Telephone
Other contract svcs.
$113,085
12,439
9,603
12,439
1,200
200
270,000
o
o
o
5,000
12,000
o
55.000
o
6,540
o
7,200
$504,707
TOTAL PROPERTY MAINTENANCE
Bush Field Airport
c:\... \ags\bug-pos. WK4 ccg 11/ 15/99
Newton & Associates, Inc.
Table V-2
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
O&M EXPENSES BY DEPARTMENT
(Page -I of 7)
FUNCTIONAL AREA
Budget
1999
AIRCRAFT SERVICES
Salaries & Wages - Reg.
Salaries & Wages - Overtime
Salaries & Wages - Temp.
FICA
Health Insurance
Uniforms
Safety
Electricity
Hazardous Waste Disposal
Office Supplies
Data Processing Supplies
Operating Supplies .
Small Equipment
Non-recurring Supplies
Inventory/Cost of Sales
Avjet
IOOLL
Oil
Fuel Discounts
Fuel Commissions
Program Supplies
Equipment Maintenance
Vehicle Maintenance
Other Maintenance
Gas and Oil
Telephone
Postage
Printing
Advertising
Training & Teleconferences
Subscriptions
Books
Insurance
Rent - equipment
Other contract svcs.
Other Miscellaneous Charges
TOTAL AIRCRAFT SERVICES
$457,828
50,361
2,800
38,876
50,361
5,000
1,000
o
10,000
1,000
500
11,000
o
1,715
2,750,000
o
o
o
93,982
32,173
17,000
5,000
25,000
1,250
30,000
o
o
1,725
7,000
2,000
1,300
800
3,000
7,000
19,000
2,500
$3,629,172
BUsh Field Airport
c:\...\ags\bug-pos.WK4 ccg 11/15/99.
Newton & Associates, Inc.
Table V-2
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliniinary Feasibility Report
O&M EXPENSES BY DEPARTMENT
(Page 5 of 7)
FUNCTIONAL AREA
Budget
1999
ARFF
Salaries & Wages - Reg.
Salaries & Wages - Overtime
FICA
Health Insurance
Uniforms
Safety
Electricity
Operating Supplies
Small Equipment
Equipment Maintenance
Non-recurring Supplies
Vehicle Maintenance
Other Maintenance
Gas and Oil
Telephone
Training & Teleconferences
Prof. Membership Dues
Subscriptions
Books
Insurance
Rent - equipment
TOTAL ARFF
Bush Field Airport
$300,675
33,074
25,532
33,074
7,500
19,395
o
15,680
o
o
2,100
25,000
1,090
2,400
o
12,500
200
500
o
1,600
1,000
$481,321
c:\...\ags\bug-pos.WK4 ccg 11/15/99
Newton & Associates, Inc.
Table V-2
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
O&M EXPENSES BY DEPARTMENT
(Page 6 of 7)
FUNCTIONAL AREA
Budget
1999
SECURITY
Salaries & Wages - Reg.
Salaries & Wages - Overtime
FICA
Health Insurance,
Uniforms
Safety
Data Processing Supplies
Operating Supplies
Program Supplies
Equipment Maintenance
Vehicle Maintenance
Gas and Oil
Telephone
Training & Teleconferences
Subscriptions
Other contract svcs.
TOTAL SECURITY
Bush Field Airport
$31,630
3,479
2,686
3,479
800
200
25,000
1,000
1,000
5,000
13,000
6,600
o
500
400
275,000
$369,774 '
c:\...\ags\bug-pos. WK4 ccg 11/15/99
Newton & Associates, Inc.
Table V-2
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
O&M ExPENSES BY DEPARTMENT
(page 7 of 7)
FUNCTIONAL AREA
Budget
1999
CUSTODIAL
Salaries & Wages - Reg.
Salaries & Wages - Overtime
FICA
Health Insurance
Uniforms
Janitorial Supplies
Operating Supplies
Equipment Maintenance
Telephone
Other contract svcs.
TOTAL CUSTODIAL
LANDSIDE MAINTENANCE (GROUNDS)
Salaries & Wages - Reg.
Salaries & Wages - Overtime
FlCA
Health Insurance
Uniforms
Safety
Water
Electricity
Landfill Charges
Operating Supplies
Grounds Maintenance
Pavement Maintenance
Equipment Maintenance
Vehicle Maintenance
Other Maintenance
Gas & Oil
Telephone
Rent - equipment
Other contract svcs,
TOTAL LANDSIDE MAINT
TOTAL OPERATING EXPENSES
Bush Field Airport
$128,295
14,112
10,894
14,112
2,500
27,000
1,000
o
o
93,500
$291,413
$138,575
15,243
11,767
15,243
1,500
300
o
o
500
3,500
25,000
o
o
15,500
6,440
o
o
600
55,000
$289.169
$7.321. 782
c:\...\ags\bug-pos.WK4 ccg 11/15/99
Newton & Associates, Inc.
Table V-3
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
ALLOCATION OF VEHICLE MAINTENANCE
TO DEPARTMENTS
DESCRIPTION
Budget
1999
VEHICLE MAINTENANCE
FBO - Aircraft Services
ARFF
Landside Maintenance
Security
Airside
Administration
TOTAL VEHICLE MAINTENANCE
DEPARTMENT SUMMARY 1/
Administration
Finance
Marketing
Airside
Property Maintenance
FBO-Aircraft Services
ARFF
Security
Custodial
Landside Maintenance
TOTAL O&M EXPENSES
CHECK TOTAL
DIFFERENCE (MUST = 0)
$96,745
48,373
48;373
24,186
19,349
4,837
$241,863
$1,147,377
146,699
o
244,474
504,707
3,725,917
529,693
393,961
291,413
337,542
$7,321,782
7,321,782
o
II Includes the allocation of Vehicle Maintenance shown above.
Bush Field Airport
c:\...\ags\bug-pos.WK4 ccg 11/15/99
Newton & Associates, Inc.
Table V-4
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
ALLOCATION OF 0&1,1 EXPENSES
TO COST CENTERS
Page (1 of 3)
Budget
FUNCTIONAL AREA 1999
ADMINISTRATION $/./47,377
Airfield $458,951
Tenninal 344,213
Parking/Ground Transportation 57,369
FBO-Aircraft Services 229,475
Other Property 57,369
SUBTOTAL $1,147,377
FINANCE $146.699
Airfield $58,680
Tenninal 44,010
Parking/Ground Transportation 7,335
FBO-Aircraft Services 29,340
Other Property 7,335
SUBTOTAL $146,699
MARKETING $0
Airfield $0
Tenninal 0
Parking/Ground Transportation 0
FBO-Aircraft Services 0
Other Property 0
SUBTOTAL $0
AIRSIDE $244.474
Airfield $220,027
Tenninal 24,447
Parking/Ground Transportation -0
FBO-Aircraft Services 0
Other Property 0
SUBTOTAL $244,474
Bush Field Airport
c:\...\ags\bug-pos.WK4 ccg 11/15/99
,Newton & Associates, Inc.
Table V-4
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
ALLOCA TION OF O&M EXPENSES
TO COST CENTERS
Page (2 of 3)
FUNCTIONAL AREA
Budget
1999
$504,707
PROPERTY MAINTENANCE
Airfield
Terminal
Parking/Ground Transportation
FBO-Aircraft Services
Other Property
SUBTOTAL
ARFF
Airfield
Terminal
Parking/Ground Transportation
FBO-Aircraft Services
Other Property
SUBTOTAL
SECURITY
Airfield
Terminal
Parking/Ground Transportation
FBO-Aircraft Services
Other Property
SUBTOTAL
Bush Field Airport
$201,883
201,883
o
50,471
50,471
$504,707
$529,693
$450,239
31,782
15,891
15,891
15,891
$529,693
$393,961
$23,638
334,866
11,819
11,819
11,819
$393,961
c:\...\ags\bug-pos.WK4 ccg 11/15/99
Table V-4
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
ALLOCA TION OF O&M EXPENSES
TO COST CENTERS
Page (3 of 3) ,
FUNCTIONAL AREA
Budget
1999
CUSTODIAL
$291,413
Airfield
Terminal
Parking/Ground Transportation
FBO-Aircraft Services
Other Property
SUBTOTAL
$0
233,131
o
29,141
29,141
$291,413
LANDSIDE MAINTENANCE
$337,542
Airfield
Terminal
Parking/Ground Transportation
FBO-Aircraft Services
Other Property
SUBTOTAL
$0
168,771
67,508
33,754
67,508
$337,542
FBO-AIRCRAFT SERVICES
$3,725,917
Airfield
Terminal
Parking/Ground Transportation
FBO-Aircraft Services
Other Property
SUBTOTAL
, , GRAND TOTAL
CHECK TOTAL
DIFFERENCE (MUST = 0)
$0
o
o
3,725,917
o
$3,725,917
7,321,782
7,321,782
o
Newton & Associates, Inc.
Bush Field Airport
c:\...\ags\bug-pos. WK4 ccg 11/15/99
Newton & Associates, Inc.
Table V-5
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
ExPENSE SUMMARY BY COST CENTER
DESCRIPTION
Budget
1999
O&M EXPENSES
Airfield
Terminal
Parking/Ground Transportation
FBO-Aircraft Services
Other Property
TOTAL O&M EXPENSES
$1,413,416
1,383,102
159,922
4,125,808 '
239,534
$7,321,782
CAPITAL OPERATING ACCOUNT (5701)
$249,870
Airfield
Terminal
Parking/Ground Transportation
FBO-Aircraft Services
Other Property
TOTAL CAP OPER ACCOUNT
TOTAL EXPENSES
$48,236
47,201
5,458
140,801
8,175
$249,870
$7.571.652
Bush Field Airport
c:\...\ags\bug-pos.WK4 ccg 11/15/99
Table V-7
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
O&M EXPENSE ESTIMATES
SUMMARY BY,COST CENTER
Projected
20QL-
Budget Projected Projected
--1QQQ__,_ 200L-__ 2002
Projected
2007
Projected
2006
Projected
2005
Projected
2004
_DE~CRJr.I!Q!'I
$1,734,019
1,680,659
207,971
5,233,665
300,499
$9,156,813
$1,668,510
1,616,906
200,120
5,032,962
289,090
-'--
$8,807,588
$1,605,521
1,555,606
192,571
4,839,978
278,119
---------
$8,471,795
$1,544,954
1,496,663
185,312
4,654,417
267,570
$8,148,917
$1,486,717
1,439,987
178,333
4,475,993
257,427
--
$7,838,457
$1,469,373
1,426,979
176,165
4,467,321
255,259
_'_~_~_"h
$7,795,097
$1,413,375
1,372,483
169,454
4,295,760
245,506
---'--
$7,496,578
$1,359,532
1,320,083
163,001
4,130,797
236,128
--.-.
$7,209,540
O&M EXPENSES
Airfield
Terminal
V~II......_
$273,060
$51,709
50,118
6,202
56,070
8,961
$273,060
$51,729
50,129
6,204
56,036
8,963
$273,060
$51,749
50,140
6,207
56,001
8,964
$273,060
$51,769
50,151
6,210
55,964
8,966
$273,060
$51,791
50,163
6,212
155,925
8,9.68
--~- ..--.
$273,060
$273,060
$51,472
49,987
6,171
56,489
8,942
$273,060
$51,482
, 49,992
6,172
56,471
8,942
$273,060
$51,492
49,998
6,174
56,453
8,943
CAPITAL OPERATING ACCOUNT (570
Airfield
Terminal
Parking/Ground Transportation
FBO-Aircraft Services
Other Property
TOTAL CAP OPER ACCOUNT
$273,060
~-~~R~~~l ~L_!Jt.U J ,lU-,,__,~ ...$~,4 21,2.7.7__18. 7~1,8 5 5 $9,08Q,648 $9,429.873
5/99
1/
WK4 ccg
--~--_._-_..-~---_.._.-
$273,060 $273,060 $273,060
c:\,.. \ags\FIN-03
$273,060
Field Airport
__u_.._.. ..~,_. __._
$273,060
--- ,-.
$273,060
--.-.$1~ ~~,gQg,-~",--.$~J~2!QJ ~~""
Bush
TOTAL EXPENSES
nc,
Newton & Associates,
Table V-8
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
NEW DEBT SERVICE BY COST CENTER
Budget Projected Projected Projected Projected Projected Projected Projected
2000 2001 2002 2003 2004 -1Q,Qi. 2006 2007
--'- --
$0 $0 $0 $1,723,200 $1,723,200 $1,723,200 $1,723,200 $1,723,200
$0 $0 $0 $227,779 $227,779 $227,779 $227,779 $227,779
0 0 0 1,064,511 1,064,511 1,064,511 1,064,511 1,064,511
0 0 0 102,931 102,931 102,931 102,931 102,931
0 0 0 96,951 96,951 96,951 96,951 96,951
0 0 0 120,676 120,676 120,676 120,676 120,676
0 0 0 0 0 0 0 0
0 0 0 110,948 110,948 110,948 110,948' 110,948
-- ------
$0 $0 $0 $1,723,796 $1,723,796 $1,723,796 $1,723,796' $1,723,796
Bush Field Airport c:\...\ags\FIN-03, WK4 ccg 5/99
DESCRIPTION
------
NEW DEBT SERVICE
COST CENTER
Airfield
Terminal
Loading Bridges
Tenant Upfit
Parking/Ground Transportation
FBO-Aircraft Services
Other Property
TOTAL DEBT SERVICE
DC,
Newton & Associates,
Table V-9
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
NON-AIRLINE REVENUES B Y COST CENTER
(Pager I 0/2)
Budget Projected Projected Projected
--.----1QQ~___~Q!__.__1QQ~_____.______ 200~_
Projected
2007
Projected
,.-1006
Projected Projected
20Q.~__1.Q05
D~SCRI~I!Q~_______
$5,933,502
15,681
2,543
1,353
70,637
90,720
64,568
14,758
35,051
2,829
9,678
2,000
$5,647,727
15,224
2,420
1,313
67,235
181,534
62,688
14,329
34,030
2,746
9,105
2,000
$5,375,715
14,781
2,304
1,275
63,997
72,791
60,862
13,911
33,039
2,666
$5,116,805
14,350
2,193
1,238
60,914
164,469
59,089
13,506
32,077
2,589
18,008
2,000
'--'---
$5,487,239
$4,870,365
13,932
2,087
1,202
57,981
156,547
57,368
13,113
31,143
2,513
17,484
2,000
.._____._, ._h.____
$5,225,735
$4,635,794
13,526
1,987
1,167
55,188
149,008
55,697
12,731
30,236
2,440
16,974
2,000
....__ _ ."HO...
$4,976,748
$4,412,520
13,133
1,891
1,133
52,530
141,831
54,075
12,360
29,355
2,369
16,480
2,000
..........-.-..... .-
$4,739,677
$4,200,000
12,750
1,800
1,100
50,000
135,000
52,500
12,000
28,500
2,300
16,000
2,000
$4,5
FDO-AIRCRAFT SERVICES
Aviation Fuel Sales
Auto & Diesel Fuel Sales
Oil Sales
Gen. Av. Misc.
Gen. Aviation Ramp Fees
Gen, Aviation J..abor
Catering
Facilities Use
Ground Handeling
Aircraft Cleaning Services
Aircraft Security Services
Sales Tax Rec.:ipts
8,548
2,000
$5,761,890
$6,353,320
.---..-------
$6,050,352
SUBTOTAL
$150,000
$128,656
35,697
22,644
10,709
100
$150,000
27,382
34,820
22,088
10,446
100
4,300
$
$150,000
$126,121
33,967
21,546
10,190
100
4,300
$150,090
$124,872
33,134
21,018
9,940
100
4,300
$150,000
$123,636
32,321
20,503
9,696
100
4,300
$150,000
$122,412
31,529
20,000
9,459
100
4,300
$150,000
$121,200
30,755
o
9,226
100
4,300
$150,000
$120,000
30,000
o
9,000
100
4,300
INTEREST INCOME
TERMINAL
Rental Car - T.:rminal Rental
Concessions - Food & Beverage
Concessions - New Terminal Gift
Concessions - Phone Services
Concessions - Miscellaneous
Cleaning Services
SUBTOTAL
4,300
$202,105
/15/99
36
c:\...\ags\FlN-OJ, WK4 ccg
------..-----.
$193,364 $196,224 $199,
$190,557
$187,800
Blish Field Airport
$165,58
$163,400
Inc,
Newton & Associates,
Table V-9
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
NON-AIRLINE REVENUES BY COST CENTER
(Pager 2 of 2)
Budget Projected Projected Projected Projected Projected Projected Projected
_-1QQQ...___-100 I _____, 2002 _----1003 _-1004 2005 2006 2007
$575,000 $592,387 $610,305 $628,740 $647,734 $667,302 $687,459 $708,249
7,200 7,418 7,642 7,873 8,111 8,356 8,608 8,869
875,500 901,973 929,256 957,325 986,246 1,016,040 1,046,730 1,078,386
7,200 7,308 7,418 7,529 7,642 7,756 7,873 7,991
6,900 7,004 7,109 7,215 7,323 7,433 7,545 ,7,658
0 0 0 '0 0 0 0 0
0 0 0 0 0 0 0 0
-----------~----------------- --
$1,471,800 $1,516,090 $1,561,729 $1,608,682 $1,657,056 $1,706,887 $1,758,215 $1,811,153
$35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000
16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000
287,348 291,330 295,367 299,461 303,610 307,818 312,084 316,408
2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400
0 0 0 127,623 127,6f3 127,623 127,623 127,623
136,769 136,769 136,769 136,769 136,769 136,769 136,769 136,769
0 0 0 0 0 0 0 0
0 0 0 191,435 203,917 203,917 203,917 203,917
32,800 32,800 32,800 32,800 32,800 32,800 32,800 32,800
26,500 26,500 26,500 26,500 26,500 26,500 26,500 26,500
~._--_.. -.. ------~----_..-..--..~--.--... ---_._._______h_____._..._____
$536,817 $540,799 $544,836 $867,988 $884,620 $888,827 $893,093 $897,418
.---- ,. -.--._.,-.., .. ...-.--.--.----. --------..__. .--_0..._... "_'__0__. ______.__._..____ ________ _. $9.413.992-
.-~g!~J~67=~Z,lH,H]-_=J7.,~M,llJ-.$ltQ:12,962_=,....$lU]1,27LJ~703J1L_ $9.050.7,96
Bush Field Airport c:\...\ags\FIN-03. WK4 ccg 115/99
~ESCRIfTION
PARKING/GROUND TRANS
Parking Revenue
Taxi Revenue
Rental Car - Commissions
Rental Car - Ready Return Spaces
Renatl Car - Savice Area Rental
Off-Airort Rental Car Concessions
Parking Revenue - Miscel,laneous
SUBTOTAL
OTHER PROPERTY
Hotel Rental/Commission
Hotel Utilities Reimbursement
Garrell Aviation Rental
Garrell A viatilln Utililies Reimbursement
Garrell Test Cdl
Morris Hangar Rental
Morris Hangar Utilities Reimbursement
Common Use Ilangar #2
Office/Hangar Rentals
Other Property Rental
SUBTOTAL
TOTAL NONAIRLlNE REVENUE
Newton & Associates, Inc.
Table V-IO
Augusta Aviation Commission
Augusta .Regional Airport lit Bush Field
Preliminary Feasibility Report
Projecled
2007
Projected
2006
Projected
2005
Projected
2004
MINIMUM AIRLINE COST PER ENPLANEMENT
Projected
2003
Projected
._---1Q02
Budget Projected
_.._---2Q~__2001
DESCRlfTlON
$9,156,813
87,306
150,000
100,000
o
$8,807,588
83,948
50,000
00,000
o
$8,471,795
80,720
50,000
00,000
o
$8,148,917
77,615
150,000
100,000
o
$7,838,457
10,840
50,000
00,000
o
$7,795,097
653,205
50,000
00,000
o
$7,496,578
653,205
50,000
00,000
o
$7,209,540
653,205
50,000
00,000
o
TOTAL AIRPORT REQUIREMENT
O&M Expenses
O&M Reserve Requirement
Renewal and Replacement Fund
Discretionary Fund
Existing Debt Service
New Debt Service
Debt Service Coverage
Capital Expenditures
,523,914
o
,523,914
o
,523,914
380,979
273,060
---
$10,277,249
o
o
273,060
$8,971,36
o
o
273,060
$8,672,842
o
o
273,060
$8,385,805
,523,914
o
273,060
--
,291,094
,523,914
o
273,060
273,060
---
$10,599,488, $10,938,5
273,060
---
$10,273,506
TOT ~L AIRPORT REQUIREMENT
$
LESS:
Total Nonairline Revenues
PFe Revenue
$9,413,996
656,217
$9,050,796
646,508
$8,703,829
636,966
--------..-
$9,340,794
$8,372,279
627,562
------.--
$8,999,84
$8,042,962
618,297
-_.__.._~-
$8,661,259
3
o
$7,42
2,147
o
$7,
$6,835,967
o
--..,-
$10,070,214
$9;697,304
3
I,
$7,42
2,147
$7,
---
$6,835,967
TOTAL REVENUES
$1,550,249
$1,560,696
$1,549,838
NET REQUIREMENT
$1,220,880
$1,241,206
$1,258,694
$1,273,665
5,99
$1,6
236,560
233,060
$5.33
$4.19
229,620
$5.48
$4.46
226,230
$5,63
$4.74
222,890
$7.25
$6.32
219,600
$7,06
$6.37
216,350
$7,21
$6.73
213,150
$7,27
$7,03
ENPLANEMENTS
AIRLINE COST PER ENPLANEMENT
Present Value (1999 @ 3.5%)
$5.16
$3.92
5/99
/
WK4 ccg
c:\...\ags\FIN-03
loading bridge charges and security reimbursements.
Bush Field Airporl
NOTE: Airline revenues excludes tenant upfit
Newton & Associates, Inc.
Table V-ll
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Survey of Comparable Airport Revenues
1997 Airline
Airport City State Enplanements Revenue CPEP
Non Hub Airports:
Bush Field Airport Augusta GA 206,171 $482,344 . $2.34
Asheville Regional Asheville NC 263,767 $924,714 $3.51
Barkley Regional Pudach KY 20,540 $124,474 $6.06
Fayetteville Regional Fayetteville NC 165,384 $309,238 $1.87
Glynco Jetport Brunswick GA 18,277 $28,911 $1.58
Golden Triangle Regional Columbus MS 41,943 $182,500 $4.35
Hilton Head Hilton Head SC 92,000 $638,000 $6.93
Melbourne International Melbourne FL 306,044 $1,544,322 $5.05
Meridian Regional Meridian MS 28,697 $95,454 $3.33
Middle Georgia Regional Macon GA 30,704 $140,993 $4,59
Naples Naples FL 65,328 $265,557 $4.06
Northwest Alabama Regional Muscle Shoals AL 8,300 $51 ,460 $6.20
Panama City International Panama City FL 167,200 $713,774 $4.27
Southwest Georgia Regional Albany GA 39,447 $101,765 $2.58
Tupelo Municipal Tupelo MS 14,358 $72,604 $5.06
Wilmington International Wilmington NC 216,358 $806,100 $3:73
1997:
Average Non Hubs 105,282 $405,138 $4.09
Median Non Hubs 53,636 $224,029 $4,17
1999: (3.5 % )
Average Non Hubs $433,994 $4.39
Median Non Hubs $239,985 $4.46
c:\lotsuite\... \ags\revsurv. wk4 mdh range: airline rev
Source: AAAE Survey of Airport Rages and Charges: 1997 - 1998
Compiled by Newton & Associates, Inc.
Table V-12
Augusta Aviation Commission
Augusta Regional Airport at Bush Field
Preliminary Feasibility Report
AIRPORT CASH FLOW
i
I
.- '-
Projected
2007
$1,220,880
9,4\3,996
656,217
380,979
$11,672,072
Projected
2006
$1,241,206
9,050,796
646,508
380,979
Projected
2005
-,
$1,258,694
8,703,829
636,966
380,979
--
$10,980,467
Projected
2004
$1,273,665
8,372,279
627,562
380,979
DBO
Projected
-----100L
$1,615,991
8,042,962
618,297
o
Projected
2001
o
---------.-
$8,672,842 $8,971,361
Projected
2002
-----"
$1,550,249
7,421,1 \3
o
o
Budget
2000
-------.--...--
$1,549,838 $1,560,696
6,835,967 7,112,147
o 0
o
$8,385,805
~ESCR1fI1Q!,!__________
Airline Revenues
Nonairline Revenues
PFC Revenue
Rolling Debt Service Coverage Transfer
TOTAL REVENUES
'-
,319,489
$
----.---
$10,277,249 $10,654,484
56,813
$9,
$8,807,588
$8,471,795
$8,148,917
$7,838,457
$7,795,097
$7,496,578
$7,209,540
LESS:' O&M EXPENSES
$2,515,259
87,306
50,000
00,000
o
,523,914
380,979
273,060
o
$2,5 \1,90
83,948
50,000
00,000
o
$2,508,672
80,720
50,000
00,000
o
$2,505,567
77,61~
50,000
00,000
o
$2,438,793
0,840
50,000
00,000
o
76,265
653,205
150,000
100,000
o
$
76,265
653,205
150,000
100,000
o
o
$
76,265
653,205
150,000
100,000
o
o
1,
$
,523,914
380,979
273,060
o
,523,914
380,979
273,060
o
,523,914
380,979
273,060
o
,523,914
380,979
273,060
o
o
o
273,060
o
o
273,060
o
o
273,060
o
O&M Reserve Requirement,
Renewal and Replacement Fund
Discretionary Fund
Existing Debt Service
New Debt Service
New Debt Service Coverage Transfer
Capital Expenditures
Amortization
NET REVENUES
,==-===--=,Q_________ _~._-__(QL--JQL------1Q) (0)
5/99
.65
1/
WK4 ccg
.65
c:\..,\ags\FIN-03
.65
.64
.60
NA
Field Airport
------..---
----~--------_!!
Busl
NA
NA
NET REMAINING REVENUES
DEBT SERlVCE COVERAGE
Newton & Associates, Illc,