Draft EUG Master Plan Update, February 2010

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CHAPTER 5 FINANCIAL FEASIBILITY ANALYSIS As shown in Table 5-9, the Airport is projected to produce net revenues adequate to cover all projected debt service payments and required reserve fund deposits as well as provide for significant deposits to the Airport Operating and Capital Reserve Fund on an annual basis through FY 2016. Although a detailed analysis of the Airport operating performance from FY 2017 through FY 2028 was not conducted, it is anticipated that similar financial results will continue through the end of the planning period. Table 5-10 presents an analysis of the anticipated sources, uses, and balances of funds for the recommended CIP through FY 2016. The first section of Table 5-10 presents Sources of Funds that the Airport anticipates will be available to fund the CIP. As shown in Table 5-10, it is funding for the recommended CIP will come from AIP entitlement, AIP discretionary, PFC revenue, and the Airport’s Operating and Capital Reserves and Depreciation Reserve Funds. The Operating and Capital Reserve Fund is a fund maintained by the Airport which holds the cumulative balance of net revenues from the Airport’s operating activities. It is forecasted that a balance of approximately $3.3 million will be on hand as of June 30, 2008. For purposes of this analysis, it is assumed that portions of future net revenues from operating activities will be transferred to this account, a portion of the fund will be used to fund the local share of recommended CIP projects, and a balance of $3.5 million will exist as of June 30, 2016 assuming the Airport achieves the operating financial results projected herein. The anticipated CIP funding plan (USES OF FUNDS) is also presented in Table 5-10. The preliminary CIP funding plan was developed and discussed earlier in this analysis. The controlling objectives in developing the CIP funding plan were to maximize the use of resources from AIP and PFC funds and to minimize Airport/local funding requirements. The Total Uses of Funds depicted in Table 5-10 corresponds to the total estimated project cost for the recommended CIP projects in each of the planning years FY 2008 through FY 2016. The final section of Table 5-10 presents the annual balance projected for each of the funding sources anticipated for use in the recommended CIP. AIP discretionary funds and private funds will maintain a zero balance through FY 2016, as it is assumed that these funds will be received when needed to fund specific components of the recommended CIP. A balance of $2.7 million in AIP entitlement funds is expected in FY 2016; however, these funds are programmed for use in Fiscal Year 2018 for the Runway 34R Extension Project. A balance of approximately $4.7million in PFC revenues is also forecast; yet, these resources are pledged to pay debt service as well as other pay-as-you-go eligible projects in future years. Finally, as noted previously, the Airport’s Operating and Capital Reserve Fund is expected to continue a positive balance through FY 2016. Conclusion As shown in Tables 5-9 and 5-10, the Airport is projected to produce positive net operating revenues through FY 2016. Furthermore, the deposit of a portion of these net operating revenues into the Airport’s Operating and Capital Reserve Fund will allow the Airport, based on the CIP funding plan developed in this analysis, to have adequate amounts of AIP, PFC, and Operating and Capital Reserve Funds necessary to fund the CIP through 2016. Based on the foregoing analysis, including the underlying assumptions under which it was made, the CIP recommended for the Airport is expected to be both feasible and implementable. 5-31 Eugene Airport Master Plan Update (February 2010)