Draft EUG Master Plan Update, February 2010

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SUPPLEMENTAL FINANCIAL ANALYSIS APPENDIX B Eugene Airport Master Plan Update Supplemental Financial Analysis FY 2011 - 2015 Background and Purpose Chapter 5, Financial Feasibility Analysis of the 2008 Eugene Airport Master Plan Update presents a financial feasibility analysis that demonstrates the Airport’s capacity to undertake the proposed capital improvement plan generated as the result of the findings of this planning effort. This plan anticipates an investment of approximately $119.4 million during the 20-year planning period to complete identified aviation safety, preservation, security, and capacity enhancement projects. Subsequent to finalizing this Master Plan Update significant shifts in national, state and local economic conditions occurred which negatively affected aviation activity at Eugene Airport (EUG). These events, coupled with the fact that sustainable Airport Improvement Program (AIP) reauthorization legislation has not been enacted at the federal level, have altered the focus and scope of the proposed capital improvement plan presented in Chapter 5. Despite these events, EUG has completed several projects identified in this plan and is coordinating a revised five year capital improvement plan with the FAA. Moreover, the Airport is seeking grant-in-aid funds from the State of Oregon to construct its proposed rental car service facility in lieu of incurring debt to complete this project. Given that local governing bodies are scheduled to hold public work sessions on the Airport Master Plan during the first quarter of 2010, Airport management requested that a supplemental analysis of the Airport’s financial plan be undertaken to ensure that the revised five (5) year capital improvement program is sustainable and viable both from a capital and operational perspective. Accordingly, this supplemental analysis evaluates the Airport’s capacity to: Complete its revised FY 2011-2015 capital improvement plan Generate sufficient revenues to fund all anticipated operating expenses Make required annual contributions to its established reserve funds The techniques utilized in Chapter 5 of this Master Plan Update are reflected in this supplemental analysis to ensure its findings are consistent and valid. B-1 Eugene Airport Master Plan Update (February 2010)