Draft EUG Master Plan Update, February 2010

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SUPPLEMENTAL FINANCIAL ANALYSIS APPENDIX B for the periods examined continued on the order of 2 percent. Overall Airport revenue grew from $6.6 million in FY 2003 to $7.0 million in FY 2006. Between FY 2006 and 2010 (Budget), Airport revenues were essentially flat after spiking in FY 2008 to $7.6 million only to decrease to FY 2006 levels in the following year. The following presents the annual compounded annual growth rates in overall Airport revenues for the period FY 2003-09, FY 2006-10 (Budget) and FY 2008-10 (Budget): FY 2003-09 FY 2006-10 FY 2008-10 Total Airport Revenues 2% 0% -3% For the period FY 2006-2010 (Budget), aircraft hangar rentals and rental car auto concessions experienced solid annual growth rates of 4 and 6 percent respectively while Fixed Base Operators, building land rentals and automobile parking concession revenues were unchanged. Historical trends for airline revenue continue to reflect EUG’s efforts at reducing its reliance on these sources of revenue for its operation. In FY 2003, airline revenue totaled $3.1 million and represented 47.5 percent of all Airport revenues. FY 2009 revenues collected from airlines totaled $2.3 million; however, represented only 34 percent of overall Airport operating revenues. As shown in Table 5-5, total revenues for EUG were projected to increase from $7,296,261 in FY 2009 to $9,636,043 in FY 2016; representing a compounded annual growth rate of 4.0 percent. Revenue trends experienced during the period FY 2006-2010 (Budget) as well as FY 2008-2010 (Budget) complicate forecasting of future revenue; however, based upon the positive trends experienced in FY 2010, it is reasonable to expect that EUG will meet its FY 2010 budget estimates and attain an annual compounded growth rate of 3.0 percent during the next five years. Such a rate of growth will require on the order of approximately $180,000 per year of additional revenue to reach the forecasted level of $8.0 Table B-5 million in FY 2015 as detailed in . Attainment of this revenue forecast will require that airline rates and charges be adjusted 2 percent per year. Such changes in airline rates should be acceptable provided annual enplanements grow at a rate of 2.2 percent per year; the level of passenger growth required to maintain airline cost per enplaned passenger levels at the current competitive level of approximately $7.00. B-8 Eugene Airport Master Plan Update (February 2010)