Draft EUG Master Plan Update, February 2010

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CHAPTER5 FINANCIAL FEASIBILITY ANALYSIS As shown in Table 5-1, the CIP is projected to be funded by outlays from the following sources: $58,061,908 from AIP entitlement funds, $5,534,719 from AIP discretionary funds, $32,271,873 from PFC revenue (not inclusive of debt service on bonds issued for terminal and access road improvements), $15,901,500 from local sources (the Airport’s Operating and Capital Reserve and Depreciation Reserve Funds), $3,000,000 from Customer Facility Charge revenues, and $4,610,000 from other funding sources including a $110,000 grant from “Connect Oregon” in FY 2008 for the Phase II Air Cargo Ramp Expansion Project, as well as a $4.5 million allocation from the FAA’s Facilities and Equipment Program in FY 2021 for a new FAA air traffic control facility. The CIP presented in Table 5-1 does not include certain projects, such as general aviation hangars and private business developments, which may be funded by other private sources. For purposes of this analysis, it was assumed that tenant-financed projects would not be constructed until demand warrants (i.e., demand and unit user revenues make it feasible to develop and finance additional hangar facilities). 3. Funding for the Program Based on the descriptions of the capital improvement projects presented in Table 5-1, the phasing of these projects, their associated costs, and eligible funding amounts as identified in the previous sections, a proposed funding plan for the Airport’s CIP was developed. Federal participation in Airport capital development is based on the Airport Improvement Program as re-authorized in 2003. This analysis assumes continuance of AIP and PFC funding through the planning period without major changes. However, in the past, these programs have experienced fluctuations in levels of funding and interruptions in funding availability; therefore, it is imperative for Airport management to consider maintaining reserve funds to support Airport activities should such fluctuations and interruptions occur in the future. It is further recommended that since a host of the projects described in this plan are contingent upon sufficient aviation demand to support their ongoing operations upon completion, Airport management should closely examine the true need for their implementation prior to committing to undertaking project design and/or construction. In developing the funding plan for capital improvements, the controlling objectives were to maximize the use of resources from AIP and PFC funds and to minimize Airport/local funding requirements. It is assumed that costs for the CIP will be generated from a combination of the following potential funding sources: Federal AIP Grants Passenger Facility Charges Airport Operating and Capital Reserves Customer Facility Charges Private Funding These funding sources are discussed in further detail below. 5-10 Eugene Airport Master Plan Update (February 2010)