lehigh-northampton airport authority...nov 28, 2017 · 3.9 percent higher than the 2017 budget....

Lehigh Valley International Airport Queen City Airport

Braden Airpark

2018

OPERATING AND CAPITAL BUDGETS

APPROVED NOVEMBER 28, 2017

Table of Contents

Section 1 Overall

Table of Contents ................................................................................................ 1 Strategic Framework ........................................................................................... 2 Consultant’s Insights ........................................................................................... 3 Organizational Chart ............................................................................................ 4

Section 2 Summary

2018 LNAA Budget Summary by Cost Center ..................................................... 5 Section 3 Revenue

Revenue Narrative ............................................................................................ 6-8 2018 LVIA Statement of Operating Revenues ..................................................... 9 Revenue Charts and Graphs ........................................................................ 10-12

Section 4 Expenses

Expense Narrative ....................................................................................... 13-15 2018 LVIA Statement of Operating Expenses ................................................... 16 Expense Charts and Graphs ............................................................................. 17

Section 5 Queen City and Braden

2018 Queen City Airport and Braden Airpark Narrative ..................................... 18 Revenue and Expense Budget ..................................................................... 19-20

Section 6 Full Time Equivalent

Related Charts and Graphs .......................................................................... 21-22 Insights to Full Time Equivalent (FTE) Information ....................................... 23-24

Section 7 Cash Flow

2018 Budgeted Month by Month Cash Flow Report .......................................... 25 2018 Available Cash .......................................................................................... 26 2018 Uses of Cash ............................................................................................ 27

Section 8 Appendix A

2018 Airline Rates and Charges ................................................................... 28-37 Bond Rate Maintenance Covenant .................................................................... 38

Section 9 Exhibits Exhibit A: 2018-2022 Capital Improvement Program ................................... 39-41 Exhibit B: 2018 Projects - Rated .................................................................. 42-44

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STRATEGIC FRAMEWORK Vision: To be the best regional airport system in North America. Mission: As a customer-centric organization, we will operate our facilities safely and efficiently; grow and develop in an innovative, agile and competitive manner; and work closely with our stakeholders and partners to make our region the community of choice for business and residents.

Strategic Focus Areas Core Values Core Competencies Air Service Integrity Agility Financial Sustainability Respect Automation Customer Experience Trust Collaboration Facilities, Equipment and Infrastructure

Teamwork Diversification

Operational Safety and Security

Service Innovation

Organization Governance, Culture and People

Humility Communications

Vision – The desired role or position of the organization at some future point. Mission – The mission of an organization describes its purpose or reason for existence. Strategic Focus Areas – Fundamental elements or program areas vital for achieving long-term vision.

Core Values – Framework for day-to-day decision making / Guides our actions and behaviors.

Core Competencies – Proficiencies that enable an organization to deliver unique value to customers and stakeholders.

Performance Measures – Criteria used for the measurement of the results (outcomes) and efficiency of processes, services or programs.

November 1, 2017

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Consultant’s Insight

Unison Consulting (Unison) has been working for the Lehigh‐Northampton Airport Authority (the

Authority) for three years preparing the airline rates and charges documents for the Lehigh Valley

Airport System (the Airport). During this time, the financial health of the Airport has greatly improved. In

2013, the Authority had a deposit to the Airport’s general fund of approximately $880,000 compared to

2018 where the deposit is budgeted to exceed $1.4 million. The improved financial position is the result

of the Authority’s diligence in implementing new initiatives to increase revenues, customer

convenience, and airline efficiencies. These initiatives include, but are not limited to, 1.) Established

ground handling services, 2. ) Increased cargo activity, which has lowered the cost of doing business at

the Airport for passenger carriers, 3.) Facilitated the growth in new passenger service, 4.) Paid off debt

through the sale of surplus property, and 5.) Improved financial position through long term refinancing.

The actions taken by the Authority have benefited all involved including the Airport, the airlines, and the

passengers.

Ground Handling revenues have increased significantly since 2015. Ground handling revenues have

continued to increase over time and are now budgeted to grow from $3.3 million in 2016 to $6.1 million

in 2018.

As part of the 2018 Budget, the Authority intends to continue to identify ways to improve the Airport

while reducing expenses and creating new revenue sources. The 2018 Budget includes cost for the first

full year of the Multi‐Modal project. This project has substantially improved the passenger experience,

in particular, the project facilitates a more cohesive transportation system for passengers because of

increased movement, accessibility and visibility around the terminal.

The improvements made at the Airport did not come without increased costs. Therefore, the total

Operating and Maintenance (O&M) budget is approximately $22.0 million, which is $2.6 million higher

than the 2017 Budget. The increase in O&M expenses is largely due to higher personnel expenses

anticipated to support the Multi‐Modal project and additional equipment rentals to support the

anticipated increase in cargo activity and ground handling activity.

The Airport is structured into multiple cost centers. There are nonairline cost centers and airline cost

centers. The airline cost centers include the Airfield and the Terminal. The Airfield cost center captures

all of the costs the Airport incurs to operate the Airfield and those costs are paid through the landing

fees, which are charged based on the airline’s landed weight. The Terminal cost center captures all of

the costs the Airport incurs to operate the Terminal and those costs are paid through the terminal rental

fees. In addition, the airlines pay Apron fees, security fees, and passenger support fees. Together the

airline fees determine the airline cost per enplaned passenger (CPE). The CPE is a measure used to

compare airports across the country. The Airport’s 2018 budgeted CPE is $16.94, which is approximately

3.9 percent higher than the 2017 budget. Unison performed a benchmarking study to determine CPE

levels for similar sized airports in the same region. The study summarized data from 2016 which is the

latest available. The CPEs ranged from $2.51 to $19.24 in 2016. Although the Airport’s 2018 CPE,

estimated to be $16.94, is at the higher end of the range, it is based on the 2018 Budget, which includes

O&M and capital expenditures. This represents 2 additional years of growth in overall expenses which is

not reflected in the comparison airports.

Given the success the Airport has had over the last 3 years and management’s initiatives outlined in the

2018 Budget, Unison believes the Airport will continue to improve its financial position during the 2018

calendar year.

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PROJECT / GRANT MANAGEMENT

ENVIRONMENTAL AFFAIRS & SUSTAINABILITY

PROCUREMENT COMPLIANCE

ASSET / RISK MANAGEMENT

HUMAN RESOURCES / PAYROLL

CABLE / FIBER INFRASTRUCTURE

LAN / WAN / WIRELESS COMMUNICATIONS

DIRECTOR PLANNING & PROGRAMMING

AIRPORT PLANNING

ENGINEERING DESIGN / CONSTRUCTION

DIRECTOR INFORMATION SYSTEMS & TECHNOLOGY

MAINTENANCE / FACILITIES (CMMS, BUILDING

AUTOMATION)

SAFETY / SECURITY (CCTV, ACCESS CONTROL, EMERG.

PHONES, BADGING, FCR)

BUSINESS / FINANCE (EMAIL, INTRANET, DOC. MGMT, CELL/LAND TELEPHONY)

LANDSIDE SYSTEMS (PAGING SYSTEM, MUFIDS, CUTE, 2-

WAY RADIO SYSTEM)

AIRSIDE SYSTEMS (FUEL MONITORING, AIRFIELD LIGHTING, RING DOWN)

BOARD OF GOVERNORS

EXECUTIVE DIRECTOR

MAINTENANCE / CUSTODIAL

POLICE / LAW ENFORCEMENT

OPERATIONS CENTER / DISPATCH

SECURITY ACCESS / I.D. BADGING

ARFF / EMS

AIRPORT OPERATIONS / COMPLIANCE

DIRECTOR OPERATIONS & SAFETY

DIRECTOR COMMERCIAL SERVICES

BRADEN AIRPARK

FIXED-BASE OPERATOR / GENERAL AVIATION SERVICES

AIRLINE SUPPORT SERVICES

AIR CARGO SERVICES

PASSENGER SERVICES

QUEEN CITY AIRPORTPARKING / GROUND TRANSPORTATION

DIRECTOR BUSINESS DEVELOPMENT

AIR SERVICE DEVELOPMENT

ADVERTISING / MARKETING

STAKEHOLDER RELATIONS / COMMUNITY ENGAGEMENT

CUSTOMER EXPERIENCE / VOLUNTEERS

TERMINAL CONCESSIONS / PROPERTIES / REAL ESTATE

DEVELOPMENT

DIRECTOR FINANCE & ADMINISTRATION

FINANCE / ACCOUNTING

SOLICITORAUDITOR

COMMUNICATIONS / PUBLIC INFORMATION OFFICER

EXECUTIVE ASSISTANT

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2018 2017 Budget Var Budget Var % 2017 Variance Variance %Budget Projection to 17 Proj to 17 Proj Budget to Budget to Budget

A B C D (C/B) E F G (F/E)LVIA OPERATING REVENUES:

Airfield 5,871,473 5,235,016 636,457 12.16% 5,045,920 825,553 16.36% Terminal 5,818,234 5,501,775 316,459 5.75% 5,591,971 226,263 4.05% Parking and Roadways 4,638,810 4,406,729 232,081 5.27% 4,586,999 51,811 1.13% Aviation Leased Areas 2,526,436 2,540,641 (14,205) (0.56%) 2,410,861 115,575 4.79% Non-Aviation Leased Areas 747,850 531,577 216,273 40.69% 404,553 343,297 84.86% Ground Handling 6,062,833 5,273,887 788,946 14.96% 4,616,122 1,446,711 31.34% Aviation Services 4,230,379 3,911,726 318,653 8.15% 3,743,429 486,950 13.01% Advertising 302,369 274,929 27,440 9.98% 303,114 (745) (0.25%) Total Revenues 30,198,384 27,676,280 2,522,104 9.11% 26,702,969 3,495,415 13.09%

COST OF SALES 3,395,174 2,735,502 659,672 24.12% 2,644,823 750,351 28.37% Net Revenue 26,803,210 24,940,778 1,862,432 7.47% 24,058,146 2,745,064 11.41%

LVIA OPERATING EXPENSES:

Airfield 4,495,642 3,960,004 535,638 13.53% 4,031,241 464,401 11.52% Terminal 4,973,198 4,874,118 99,080 2.03% 4,671,773 301,425 6.45% Parking and Roadways 1,274,655 1,147,252 127,403 11.11% 1,177,029 97,626 8.29% Aviation Leased Areas 960,613 872,310 88,303 10.12% 989,722 (29,109) (2.94%) Non-Aviation Leased Areas 231,864 238,092 (6,228) (2.62%) 224,215 7,649 3.41% Ground Handling 5,164,915 3,823,165 1,341,750 35.10% 3,792,334 1,372,581 36.19% Aviation Services 851,486 788,563 62,923 7.98% 822,710 28,776 3.50% Advertising 85,985 116,630 (30,645) (26.28%) 110,184 (24,199) (21.96%) Administration 3,525,632 3,070,550 455,082 14.82% 3,134,812 390,820 12.47% Total Expenses 21,563,990 18,890,684 2,673,306 14.15% 18,954,020 2,609,970 13.77%

LVIA Income (Loss) From Operations 5,239,220 6,050,094 (810,874) (13.40%) 5,104,126 135,094 2.65%

OTHER AIRPORTS Queen City Income (Loss) 111,598 151,595 (39,997) (26.38%) 133,464 (21,866) (16.38%) Braden Airpark Income (Loss) (106,657) (81,531) (25,126) 30.82% (71,806) (34,851) 48.53% Events (Loss) (62,500) (15,000) (47,500) 316.67% (30,000) (32,500) 108.33% Air Store (Loss) 0 75 (75) (100.00%) 0 0 0.00%Other Airports Inc (Loss) From Operations (57,559) 55,139 (112,698) (204.39%) 31,658 (89,217) (281.82%)

All Airports Inc (Loss) From Operations 5,181,661 6,105,233 (923,572) (15.13%) 5,135,784 45,877 0.89%

NON OPERATING INCOME (EXPENSE): Net Interest (2,000) (5,556) 3,556 (64.00%) (32,001) 30,001 (93.75%) Miscellaneous 30,000 29,597 403 1.36% 30,000 0 0.00%Total Non Operating Income (Expense) 28,000 24,041 3,959 16.47% (2,001) 30,001 (1499.30%)

Net Income (Loss) Before Depreciation 5,209,661 6,129,274 (919,613) (15.00%) 5,133,783 75,878 1.48%

Depreciation (Net of Grants) 4,967,485 4,619,924 347,561 7.52% 4,595,077 372,408 8.10%

LNAA Net Income (Loss) 242,176 1,509,350 (1,267,174) (83.95%) 538,706 (296,530) (55.04%)

Lehigh Northampton Airport AuthorityStatement of Income -- LVI, Queen City & Braden Airports

Budget 2018

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LEHIGH-NORTHAMPTON AIRPORT AUTHORITY

Lehigh Valley International Airport 2018 BUDGET SUMMARY The 2018 Budgeted Net Income before depreciation is $5,209,661 which is $75,878 or 1% higher than the 2017 Budget. The increased infrastructure has added $372,408 in depreciation versus the 2017 budget. Our debt service ratio is 1.61 which is above our required ratio of 1.57.

2018 OPERATING REVENUE BUDGET

Total 2018 Operating Revenue Budget (including Braden & Queen City) of $31,304,044 is $2,462,755 higher than the 2017 Projection and $3,411,353 higher than the 2017 Budget. The 2018 Airline Rates and Charges are included in the budget packet. Please note the Airline Rates and Charges revenue vary slightly from LNAA’s budgeted revenue due to the differences in cost center rollups. Details follow for each cost center.

AIRFIELD LANDING FEES The calculated 2018 landing fee is $4.74, which is $.20 or 4% lower than the 2017 budgeted landing fee. Landed weights include the projected increase in ground handling flight per day. Please refer to graph of Ground Handling service flights per day. The calculation of our landing fee is included in the budget package under Appendix A. APRON PARKING FEES The apron parking requirement for 2018 is $.53 per thousand pounds of landed weight which is $.04 or 7% lower than the 2017 budgeted apron fee. Apron fees are determined based on a percentage of airfield direct and indirect operating expenses. The calculation of our apron fee is included in the budget packet.

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TERMINAL RENTS: AIRLINES The 2018 terminal rental rate is calculated at $4.95 higher than the current rate. The 2017 blended terminal rate will be $75.81/sq. ft. The rate per turn will increase to $1,214.21/per turn. The 2018 adjustments represent a 7% increase in all terminal rates. These increases are attributed to infrastructure improvements such as sidewalks and pavements, additional security, and state of the art fire protection equipment. The calculations of the terminal rental rate and the per turn fee are included in the budget packet. CONCESSION FEES: Rental car and restaurant/newsstand concession fee revenue was budgeted consistent with the 2017 Projection. Other concession revenue reflects new Trans-Bridge bus revenue associated with the completion of the Multi-Modal project.

PARKING AND ROADWAYS PARKING LOT FEES 2018 parking revenue reflects an increase above the 2017 projection based on increased enplanements, additional low carrier flights and a more assessable rental car area.

AVIATION AND NON-AVIATION LEASED AREAS HANGAR RENTS, BUILDINGS, LAND RENTS Overall aviation and building rents were budgeted higher than the 2017 projection primarily based on full occupancy and the associated CPI increase in the current contracts.

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GROUND HANDLING AIRCRAFT HANDLING The budgeted Ground Handling revenue will increase by 15% from 2017 projected year-end numbers and 31% higher than the 2017 budget. The additional revenue is due to the increase in projected activity.

AVIATION SERVICE GROUP FUEL SALES The 2018 gross fuel sales budget reflect an increase in both activity and fuel prices. The 2018 budget is 13% higher than the 2017 projection and 21% higher than the 2017 budget. The higher expected activity in 2018 increased Into-Plane fees 8% higher than the 2017 projection and 10% higher than the 2017 budget.

ADVERTISNG ADVERTISING In 2016, the airport brought advertising in-house and advertising was moved to its own cost center. The budgeted revenue for 2018 reflected a stabilization of the airport’s advertising efforts.

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A B C D (C/B) E F G (F/E)OPERATING REVENUES: Airfield: Landing Fees $5,300,854 $4,573,715 $727,139 15.90% $4,468,812 $832,042 18.62% Apron Parking Fees 570,619 548,550 22,069 4.02% 487,047 83,572 17.16% Land Rents 0 112,752 (112,752) (100.00%) 90,060 (90,060) (100.00%) Total Airfield Fees $5,871,473 $5,235,017 $636,456 12.16% $5,045,919 $825,554 16.36%

Terminal: Rent - Airlines $3,434,632 $3,411,716 $22,916 0.67% $3,421,019 $13,613 0.40% Rent - Concession & Other 737,486 505,661 231,825 45.85% 518,421 219,065 42.26% Concession Fee - Rental Cars 1,362,116 1,298,939 63,177 4.86% 1,374,405 (12,289) (0.89%) Concession Fee - Restaurant/Newsstand 220,000 219,315 685 0.31% 220,605 (605) (0.27%) Concession Fee - Other 34,000 33,525 475 1.42% 27,121 6,879 25.36% Utility Fees & Other 30,000 32,619 (2,619) (8.03%) 30,399 (399) (1.31%) Total Terminal Rents $5,818,234 $5,501,775 $316,459 5.75% $5,591,970 $226,264 4.05%

Parking and Roadways $4,638,810 $4,406,729 $232,081 5.27% $4,586,999 $51,811 1.13%

Aviation Leased Areas: Hangar No. 1 Rent $57,870 $56,738 $1,132 2.00% $56,738 $1,132 2.00% Hangar No. 2 Rent 62,232 47,118 15,114 32.08% 33,995 28,237 83.06% Hangar No. 3 Rent 313,466 336,747 (23,281) (6.91%) 262,589 50,877 19.38% Hangar No. 5 Rent 21,726 21,624 102 0.47% 21,112 614 2.91% Hangar No. 7 Rent 345,606 272,880 72,726 26.65% 276,857 68,749 24.83% Hangar No. 8 Rent 153,012 232,478 (79,466) (34.18%) 188,007 (34,995) (18.61%) Hangar No. 9 Rent 748,565 748,538 27 0.00% 751,848 (3,283) (0.44%) Hangar No. 10 Rent 504,310 504,306 4 0.00% 491,989 12,321 2.50% T-Hangars 185,525 174,100 11,425 6.56% 191,610 (6,085) (3.18%) Air Cargo Building & Land Rents 100,000 102,867 (2,867) (2.79%) 100,870 (870) (0.86%) Ramp, Gatecard and Other Income 34,124 43,246 (9,122) (21.09%) 35,246 (1,122) (3.18%) Total Aviation Leased Areas $2,526,436 $2,540,642 ($14,206) (0.56%) $2,410,861 $115,575 4.79%

Non-Aviation Leased Areas: Building Rents $635,128 $500,077 $135,051 27.01% $404,553 $230,575 57.00% Land Rents 112,722 31,500 81,222 257.85% 0 112,722 0.00% Total Rents $747,850 $531,577 $216,273 40.69% $404,553 $343,297 84.86%

Ground Handling and Other 6,062,833 5,273,887 788,946 14.96% 4,616,122 1,446,711 31.34%

Aviation Services: Gross Fuel Sales $1,646,996 $1,461,888 $185,108 12.66% $1,361,598 $285,398 20.96% Landing Fees 145,295 145,912 (617) (0.42%) 145,588 (293) (0.20%) Into Plane Fees 2,232,328 2,076,492 155,836 7.50% 2,030,969 201,359 9.91% Hangar & Ramp Rentals 200,760 217,789 (17,029) (7.82%) 200,927 (167) (0.08%) Miscellaneous Income 5,000 9,645 (4,645) (48.16%) 4,349 651 14.97% Total Aviation Services $4,230,379 $3,911,726 $318,653 8.15% $3,743,431 $486,948 13.01%

Advertising 302,369 274,929 27,440 9.98% 303,114 (745) (0.25%)

Total Operating Revenue $30,198,384 $27,676,282 $2,522,102 9.11% $26,702,969 $3,495,415 13.09%

Cost of Sales 3,395,174 2,735,502 659,672 24.12% 2,644,823 750,351 28.37%Net Operating Revenue 26,803,210 24,940,780 1,862,430 7.47% 24,058,146 2,745,064 11.41%

Lehigh Northampton Airport AuthorityStatement of Operating Revenues - LVIA

2018 Budget

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Lehigh-Northampton Airport Authority2018/2017 LVIA Revenue Budgets

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2018 2017

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Airlines, $5,045,920, 19%

Terminal, $5,818,234 , 19%

Parking and Roadways,

$4,638,810 , 15%

Aviation/Non-Aviation Leased, $3,274,286 , 11%

Ground Handling, $6,062,833 , 20%

Aviation Services, $4,230,379 , 14%

Advertising, $302,369 , 1%

Lehigh-Northampton Airport Authority 2018 Revenue Sources

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6.65

6.39

7.29

8.10

6.39 6.45

6.90

6.45

5.90

7.23

5.55

5.82 5.90

5.80

6.00

6.40

6.77

6.45 5.93

6.65

6.80

7.00 6.83

7.16

7.26

7.13

7.37

7.84

8.29

7.91

7.29

6.95

8.13

8.37

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

Jan Feb March April May June July August September October November Dec

Aver

age

Gro

und

Hand

ing

Serv

ice

Flig

hts

Per D

ay

Average Ground Handling Service Flights Per Day By Month

2017 YTD Flight/Day 2017 Budget flights/day 2018 Budget flights/day

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LEHIGH-NORTHAMPTON AIRPORT AUTHORITY Lehigh Valley International Airport

2018 OPERATING EXPENSE BUDGET

Total 2018 Operating Expense Budget (including Braden & Queen City) of $21,982,361 is up $2,680,911 from the year end projection and $2,583,723 from the 2017 Budget. The changes in some of the major expense categories are detailed below.

SALARIES AND WAGES Salaries and wages reflect an 18% increase over the year-end projection and a 17% increase from the 2017 budget. The increase reflects several adjustments: 1. Additional ground handling personnel added to reflect the projected increase of 1.7

daily flights. 2. 16% increase in FTEs versus 2017 budget. 3. Increases in non-union wages to reflect airline salary benchmarks. Additionally, non-

union employees not impacted by the benchmark received a 2% increase effective January 1, 2018. A 1% merit pool for performance was included for all non-union employees.

4. Assumed a 2.5% increase in salary and wages for Aircraft, Rescue and Firefighting (ARFF) on September 1, 2018. The 2.5% is an estimate; the current CBA (collective bargaining agreement) ends August 31, 2018.

5. Salary and wage increases of 3.5% for Police on January 1, 2018 and a 2.5% increase for Teamsters on July 1, 2018; these numbers are per their current CBAs.

EMPLOYEE BENEFITS 2018 Benefits are budgeted at an 8% increase from the 2017 projection and flat to the 2017 budget. The main contributors were: 1. Workman’s compensation contribution of 4.3% of payroll. 2. Pension benefits estimated at 10.1% of all full time salaries. 3. 16% increase in FTEs versus 2017 budget. 4. A new qualified high deductible plan with a health savings plan for non-union

employees. 5. Self-insured unemployment claims estimated at 2.5% of salaries. 6. Employee contributions remained at 6% in 2018 for non-union employees. The

ARFF, Police, and Teamsters contributions were increased with their latest CBA. 7. A rebate of $150,000 from the 2017 medical self-insurance.

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PROFESSIONAL SERVICES The 2018 budget reflects a 23% increase versus 2017 year-end projections and a 5% increase to the 2017 budget. The increase of professional services is due to the addition of a lobbyist. LEGAL SERVICES The 2018 Budget reflects a 1% increase from the 2017 year-end projection and a 61% increase to the 2017 budget. Rates reflect the increase in legal services due the requirement of additional legal counseling for union contract negotiations and anticipated business ventures. AUDIT AND FINANCIAL SERVICES The 2018 Budget reflects an 11% decrease from the 2017 year-end projection and a 26% decrease from the 2017 budget. This decrease is attributed to the efficiency of staff which requires less reliance on outside auditors and financial consultants. CONTRACT SERVICES The contract services 2018 budget has increased 1% from the 2017 projection and 12% from the 2017 budget. The majority of the increase is due to outside consulting work necessary for environmental compliance and the search for an executive director. ADVERTISING EXPENSE The advertising budget is for external affairs, general promotion of the airport and expenses associated with in house advertising. Transition of the advertising department reflects lower costs in the first half of 2018. This reduced the 2018 budget 26% lower than the 2017 projection and 29% lower than the 2017 budget. DUES AND SUBSCRIPTIONS The dues and subscriptions budget reflects a 47% increase versus the 2017 year-end projection and 103% increase over the 2017 budget. The increase is due to additional software license fees related to IT, Payroll, Air Service software, and Airport IQ. BUSINESS AND TRAVEL EXPENSES The business and travel expense budget reflect a 35% increase versus the 2017 year- end projections and 42% higher than the 2017 budget. The increase to the 2018 budget reflects additional offsite cargo training.

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EQUIPMENT RENTAL Equipment rental costs were increased significantly in 2018 to meet the new contract requirements of our cargo operations. The 2018 budget is 46% higher than the year end projection and 54% increase over the 2017 budget. MATERIALS & SUPPLIES Material and supplies increased 11% from the 2017 year-end projections and increased 16% from the 2017 budget. Material and supplies are directly impacted by the number of snow events during the year. MAINTENANCE & REPAIRS Maintenance & Repairs budget has increased 2% from the 2017 year-end projections and 4% from the 2017 budget. Maintenance and repair costs remain high due to the age of the Authority’s equipment. The two largest cost center budgets are airfield and terminal maintenance. In the airfield, marking paint and lighting repairs are major items. In the terminal, infrastructure repairs are the major items. UTILITIES Overall utilities including heating gas and oil, electricity, and water were budgeted at an approximate 4% increase versus the 2017 year-end projection and 1% increase versus the 2017 budget. INSURANCE The 2018 budget reflects estimated increases in police, public officials, crime, and automobile insurance. PAYMENT IN LIEU OF TAXES Required payments to Catasauqua School District and Hanover Township equal 10% of our parking revenue and 2018 is budgeted accordingly. INTEREST EXPENSE Interest expense reflects a 7% increase over 2017 year end projections but a (24%) decrease from the 2017 budget. The additional interest is due to the hangar construction loan expected to close in 2018. CREDIT CARD FEES Credit card fees are incurred on sales of fuel and other FBO services, as well as parking lot revenue and will vary proportionately with the revenue.

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A B C D (C/B) E F G (F/E)OPERATING EXPENSES:

Salaries and Wages $9,169,167 $7,769,367 $1,399,800 18.02% $7,812,161 $1,357,006 17.37% Payroll Taxes 694,450 566,525 127,925 22.58% 597,630 96,820 16.20% Employee Benefits 3,252,002 3,008,434 243,568 8.10% 3,241,352 10,650 0.33% Subtotal 13,115,619 11,344,326 1,771,293 15.61% 11,651,143 1,464,476 12.57% Professional Services 434,798 352,346 82,452 23.40% 415,460 19,338 4.65% Legal Services 291,000 288,800 2,200 0.76% 181,000 110,000 60.77% Audit and Financial Services 81,125 91,181 (10,056) (11.03%) 110,000 (28,875) (26.25%) Public Relations 47,950 64,074 (16,124) (25.16%) 46,500 1,450 3.12% Contract Services 950,809 944,038 6,771 0.72% 852,165 98,644 11.58% Advertising Expense 247,378 335,643 (88,265) (26.30%) 349,214 (101,836) (29.16%) Printing 17,325 14,446 2,879 19.93% 18,910 (1,585) (8.38%) Postage 8,940 7,356 1,584 21.53% 5,340 3,600 67.42% Dues and Subscriptions 211,922 143,978 67,944 47.19% 104,465 107,457 102.86% Office Supplies 52,644 52,449 195 0.37% 51,290 1,354 2.64% Telephone 114,357 104,012 10,345 9.95% 103,238 11,119 10.77% Training and Seminars 131,791 114,374 17,417 15.23% 113,455 18,336 16.16% Business and Travel Related 119,155 88,532 30,623 34.59% 84,008 35,147 41.84% Hospitality 25,570 23,305 2,265 9.72% 25,325 245 0.97% Equipment Rental 2,019,665 1,385,021 634,644 45.82% 1,313,330 706,335 53.78% Materials & Supplies 551,484 498,064 53,420 10.73% 477,196 74,288 15.57% Maintenance Repairs 754,718 739,418 15,300 2.07% 724,286 30,432 4.20% Heating Gas and Oil 365,148 359,985 5,163 1.43% 345,096 20,052 5.81% Electricity 642,364 602,289 40,075 6.65% 648,667 (6,303) (0.97%) Water 100,276 97,965 2,311 2.36% 98,228 2,048 2.08% Refuse Collection 36,937 50,200 (13,263) (26.42%) 44,069 (7,132) (16.18%) Uniforms 68,743 60,332 8,411 13.94% 60,310 8,433 13.98% Insurance 448,281 411,461 36,820 8.95% 420,156 28,125 6.69% Real Estate Taxes 108,949 104,875 4,074 3.88% 108,949 0 0.00% Payment in Lieu of Taxes 448,300 437,344 10,956 2.51% 448,300 0 0.00% Interest Expense 56,000 52,490 3,510 6.69% 74,001 (18,001) (24.33%) Credit Card Fees 157,802 150,742 7,060 4.68% 157,199 603 0.38% Bad Debt Expense 0 0 0 0.00% 0 0 0.00% Miscellaneous 54,430 65,191 (10,761) (16.51%) 40,630 13,800 33.97%

Total Operating Expenses 21,663,480 18,984,237 2,679,243 14.11% 19,071,930 2,591,550 13.59%

Allocated to QC (25,286) (23,830) (1,456) 6.11% (25,482) 196 (0.77%) Allocated to Braden (18,206) (17,231) (975) 5.66% (18,426) 220 (1.19%)

Total Operating Expenses after Allocation 21,619,988 18,943,176 2,676,812 14.13% 19,028,022 2,591,966 13.62%

*Interest Expense is included in Net Interest under Non-operating Income (Expense) on the Summary

Lehigh Northampton Airport AuthorityStatement of Operating Expenses - LVIA

2018 Budget

Page 16 of 44

Lehigh-Northampton Airport Authority2018/2017 Expense Budgets

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2018 2017

Page 17 of 44

LEHIGH-NORTHAMPTON AIRPORT AUTHORITY Queen City Airport and Braden Airpark Queen City Airport Overall Net Income from Operations shows a (26%) decrease versus the 2017 projection and a (16%) decrease from the 2017 budget primarily due to lower fuel sale estimates. The increase in direct labor costs is due to the impact of the new teamster’s contract. The 2018 budget includes an average cost for snow events and an increase in infrastructure. Although the net income after depreciation is projected at a small loss, the Authority will continue to look for opportunities to increase the Airport’s revenue. Braden Airpark Overall Net Income before Operations shows a (31%) decrease versus the 2017 projection and a (57%) decrease from the 2017 budget; revenue decreasing (6%) versus the 2017 projection and (28%) from the 2017 budget. Fuel costs are expected to go down (27%) versus the 2017 projection. The 2017 budget includes an average cost for snow events and an increase in infrastructure. The Authority’s Board and staff continue to review alternatives to increase the revenue at Braden Airpark.

Page 18 of 44


A B C D (C/B) E F G (F/E)

Revenue:

Hanger & Ramp Rentals 482,098 485,629 (3,531) (0.73%) 472,983 9,115 1.93%Fuel Sales-FBO 511,559 554,268 (42,709) (7.71%) 560,407 (48,848) (8.72%)Pilot Supplies Sales 0 22 (22) (100.00%) 16 (16) (100.00%)Miscellaneous Income 0 5,452 (5,452) (100.00%) 750 (750) (100.00%)

Total Revenue 993,657 1,045,371 (51,714) (4.95%) 1,034,156 (40,499) (3.92%)

Cost of Sales: Fuel Cost 296,518 338,141 (41,623) (12.31%) 342,410 (45,892) (13.40%) Hanger Parts & Goods Sold 1,429 786 643 81.81% 1,572 (143) (9.10%) Labor costs 307,595 278,583 29,012 10.41% 289,632 17,963 6.20%

Total Cost of Sales 605,542 617,510 (11,968) (1.94%) 633,614 (28,072) (4.43%)

Net Operating Revenue 388,115 427,861 (39,746) (9.29%) 400,542 (12,427) (3.10%)

Operating Expenses:

Salaries & Wages 35,456 40,975 (5,519) (13.47%) 50,435 (14,979) (29.70%)Payroll Taxes 2,709 2,142 567 26.47% 3,858 (1,149) (29.78%)Employee Benefits 15,661 14,636 1,025 7.00% 24,631 (8,970) (36.42%)

Subtotal 53,826 57,753 (3,927) (6.80%) 78,924 (25,098) (31.80%)

Miscellaneous Professional Fee 315 4,235 (3,920) (92.56%) 4,280 (3,965) (92.64%)Legal Services-Solicitor 1,000 0 1,000 0.00% 0 1,000 0.00%Professional Fees-Public Rel. 550 32 518 1618.75% 0 550 0.00%Contract Services 19,600 14,465 5,135 35.50% 12,830 6,770 52.77%Advertising Expense 200 267 (67) (25.09%) 300 (100) (33.33%)Printing-Marketing 90 0 90 0.00% 0 90 0.00%Postage & Shipping P&E 100 0 100 0.00% 0 100 0.00%Dues & Subscriptions P&E 736 364 372 102.20% 0 736 0.00%Office Expenses P&E 600 320 280 87.50% 600 0 0.00%Telephone Expense P&E 3,030 3,199 (169) (5.28%) 3,558 (528) (14.84%)Training & Seminars P&E 1,760 2,706 (946) (34.96%) 1,450 310 21.38%Travel & Business Expenses P&E 2,475 1,332 1,143 85.81% 1,550 925 59.68%Hospitality 300 242 58 23.97% 950 (650) (68.42%)Equipment Rental P&E 33,163 27,342 5,821 21.29% 14,316 18,847 131.65%Materials & Supplies P&E 22,099 20,205 1,894 9.37% 18,895 3,204 16.96%Maintenance & Repairs 51,001 61,831 (10,830) (17.52%) 51,397 (396) (0.77%)Utilities-Heat 14,580 13,674 906 6.63% 9,084 5,496 60.50%Utilities-Light & Power 26,406 24,005 2,401 10.00% 22,967 3,439 14.97%Utilities-Water 900 1,216 (316) (25.99%) 1,216 (316) (25.99%)Uniform Purchase & Expense 3,280 3,279 1 0.03% 3,280 0 0.00%Insurance 0 50 (50) (100.00%) 0 0 0.00%Credit Card Fees 14,820 15,568 (748) (4.80%) 15,599 (779) (4.99%)Bad Debt Expense 0 0 0 0.00% 0 0 0.00%Miscellaneous Expenses P&E 400 350 50 14.29% 400 0 0.00%Allocated 25,286 23,830 1,456 6.11% 25,482 (196) (0.77%)

Total Operating Expenses 276,517 276,265 252 0.09% 267,078 9,439 3.53%

Net Income (Loss) from Operations 111,598 151,596 (39,998) (26.38%) 133,464 (21,866) (16.38%)

NON-OPERATING COSTS: Depreciation 121,338 98,322 23,016 23.41% 98,322 23,016 23.41% Total Non-Operating Costs 121,338 98,322 23,016 23.41% 98,322 23,016 23.41%

Net Income after Depreciation (9,740) 53,274 (63,014) (118.28%) 35,142 (44,882) (127.72%)

Lehigh Northampton Airport AuthorityQueen City Airport

2018 Budget

Page 19 of 44


A B C D (C/B) E F G (F/E)

Revenue:

Hanger & Ramp Rentals 77,564 83,800 (6,236) (7.44%) 102,182 (24,618) (24.09%)Fuel Sales-FBO 34,439 35,836 (1,397) (3.90%) 53,384 (18,945) (35.49%)

Total Revenue 112,003 119,636 (7,633) (6.38%) 155,566 (43,563) (28.00%)

Cost of Sales: Fuel Cost 20,938 28,651 (7,713) (26.92%) 36,121 (15,183) (42.03%) Hanger Parts & Goods Sold 644 72 572 794.44% 144 500 347.22% Labor costs 111,221 90,432 20,789 22.99% 87,569 23,652 27.01%

Total Cost of Sales 132,803 119,155 13,648 11.45% 123,834 8,969 7.24%

Net Operating Revenue (20,800) 481 (21,281) (4424.32%) 31,732 (52,532) (165.55%)

Operating Expenses:

Salaries & Wages 3,732 8,436 (4,704) (55.76%) 11,502 (7,770) (67.55%)Payroll Taxes 285 523 (238) (45.51%) 880 (595) (67.61%)Employee Benefits 1,648 3,356 (1,708) (50.89%) 5,618 (3,970) (70.67%)

Subtotal 5,665 12,315 (6,650) (54.00%) 18,000 (12,335) (68.53%)

Miscellaneous Professional Fee 275 1,670 (1,395) (83.53%) 3,240 (2,965) (91.51%)Legal Services-Solicitor 1,000 0 1,000 0.00% 0 1,000 0.00%Professional Fees-Public Rel. 500 250 250 100.00% 500 0 0.00%Contract Services 5,942 1,530 4,412 288.37% 2,560 3,382 132.11%Postage & Shipping P&E 0 0 0 0.00% 0 0 0.00%Dues & Subscriptions P&E 0 931 (931) (100.00%) 0 0 0.00%Office Expenses P&E 240 120 120 100.00% 240 0 0.00%Telephone Expense P&E 3,584 3,089 495 16.02% 2,928 656 22.40%Training & Seminars P&E 300 235 65 27.66% 300 0 0.00%Travel & Business Expenses P&E 0 0 0 0.00% 0 0 0.00%Hospitality 250 200 50 25.00% 600 (350) (58.33%)Equipment Rental P&E 2,400 2,056 344 16.73% 2,400 0 0.00%Materials & Supplies P&E 11,000 7,833 3,167 40.43% 10,500 500 4.76%Maintenance & Repairs 14,504 15,341 (837) (5.46%) 26,200 (11,696) (44.64%)Utilities-Light & Power 8,016 6,829 1,187 17.38% 7,423 593 7.99%Utilities-Water 2,124 1,820 304 16.70% 1,668 456 27.34%Refuse Services 1,020 1,525 (505) (33.11%) 2,064 (1,044) (50.58%)Uniform Purchase & Expense 1,650 1,649 1 0.06% 1,650 0 0.00%Insurance 0 0 0 0.00% 0 0 0.00%Credit Card Fees 1,500 1,349 151 11.19% 1,639 (139) (8.48%)Bad Debt Expense 0 0 0 0.00% 0 0 0.00%Miscellaneous Expenses P&E 7,680 6,036 1,644 27.24% 3,200 4,480 140.00%Allocated 18,206 17,231 975 5.66% 18,426 (220) (1.19%)

Total Operating Expenses 85,856 82,009 3,847 4.69% 103,538 (17,682) (17.08%)

Net Income (Loss) from Operations (106,656) (81,528) (25,128) 30.82% (71,806) (34,850) 48.53%

NON-OPERATING COSTS: Debt Service 127,772 127,772 0 0.00% 127,772 0 0.00% Depreciation 77,734 71,280 6,454 9.05% 71,280 6,454 9.05% Total Non-Operating Costs 205,506 199,052 6,454 3.24% 199,052 6,454 3.24%

Net Income after Depreciation & Debt Service (312,162) (280,580) (31,582) 11.26% (270,858) (41,304) 15.25%

Lehigh Northampton Airport AuthorityBraden Airpark

2018 Budget

Page 20 of 44

Description Period FTEBudget 2018 259Actual 27-Oct-17 232

YTD Avg.* 2017 229Budget 2017 223Actual 2016 177Actual 8-Nov-16 207Actual 2015 160Actual 2014 148Actual 2013 142Actual 2012 152Actual 2011 166Actual 2010 172Actual 2009 172Actual 2008 172Actual 2007 173Actual 2006 175

*Thru 10/27/17

LNAA Full Time Equivalents (FTEs)

Page 21 of 44

Department2018 Budget

(A) 2017 Budget (B) 2016 Budget (C)Current

(D)*Variance

(A-B)

% Variance (A vs. B)

Variance (A-C)

% Variance (A vs. C)

Variance (A-D)

% Variance (A vs. D)

Transbridge 4.9 0.0 0.0 0.0 4.9 N/A 4.9 N/A 4.9 N/AAdvertising 1.0 0.5 0.5 5.0 0.5 100% 0.5 100% -4.0 -80%Passenger Services 12.1 9.8 10.5 11.7 2.3 23% 1.6 15% 0.4 3%Customer Experience 4.7 3.1 3.3 3.8 1.6 52% 1.5 45% 0.9 24%HR 2.9 1.8 1.6 2.3 1.1 61% 1.3 81% 0.6 26%Business Development 2.5 1.6 2.0 1.6 0.9 56% 0.5 25% 0.9 56%Operations Center 8.4 6.0 5.2 6.0 2.4 40% 3.2 62% 2.4 40%Marketing 1.3 1.0 0.9 1.0 0.3 30% 0.4 44% 0.3 30%Custodial 16.0 12.9 14.3 12.8 3.1 24% 1.7 12% 3.2 25%Cargo 52.2 43.4 21.0 56.4 8.8 20% 31.2 149% -4.2 -7%Planning 3.6 3.0 2.0 2.0 0.6 20% 1.6 80% 1.6 80%Operations Officers 6.7 5.6 4.9 3.2 1.1 20% 1.8 37% 3.5 109%Properties 2.5 2.1 2.0 1.3 0.4 19% 0.5 25% 1.2 92%Parking 7.7 6.5 6.9 7.2 1.2 18% 0.8 12% 0.5 7%Airline Services-LV 14.6 12.4 11.9 14.3 2.2 18% 2.7 23% 0.3 2%Police 15.0 14.4 12.0 12.9 0.6 4% 3.0 25% 2.1 16%Aviation Services- FBO 28.1 25.3 23.0 24.3 2.8 11% 5.1 22% 3.8 16%Finance 8.3 7.7 6.4 7.0 0.6 8% 1.9 30% 1.3 19%ARFF** 8.6 8.0 8.3 7.1 0.6 8% 0.3 4% 1.5 21%Maintenance (A) 21.6 20.8 16.6 18.9 0.8 4% 5.0 30% 2.7 14%Operations Admin. 5.9 5.7 5.6 5.0 0.2 4% 0.3 5% 0.9 18%Aviation Services- QC 6.6 6.6 5.9 6.8 0.0 0% 0.7 12% -0.2 -3%IT 5.0 5.0 3.6 5.0 0.0 0% 1.4 39% 0.0 0%Maintenance (L) 13.0 13.5 12.3 11.3 -0.5 -4% 0.7 6% 1.7 15%Executive Board 3.9 4.1 3.0 3.0 -0.2 -5% 0.9 30% 0.9 30%Aviation Services-Braden 1.9 2.2 1.9 2.0 -0.3 -14% 0.0 1% -0.1 -5%Grand Total 259.0 223.0 185.5 231.9 36.0 16% 73.5 40% 27.1 12%

*Current Based on last two week pay period which ended 10/27/17**FTE Based on 56 Hours for ARFF

FTEs by Department

Page 22 of 44

Insights on Additions to Personnel

Police 1 PT Police Officer – Based on increased daily coverage of airport to support additional night time Ground Handling from Air Cargo Operations and Multimodal bus services. Operations Officers 2 FT Operations Officers – Based on increased Operations from 20hr/day to 24hr/day to support Air Cargo and Multimodal bus services. 3 PT Operations Officers – Based on increased Operations from 20hr/day to 24hr/day to support Air Cargo and Multimodal bus services. Operations Center 1 FT Dispatcher – Based on 24hr/day shift coverage. 1 PT Dispatcher – Based on 24hr/day shift coverage. Operations Admin 1 FT Operations and Safety Manager – Required to replace temporary vacancy created by absence of permanent Executive Director. Maintenance Airside 1 FT Night Supervisor – Required to manage late night airfield maintenance personnel with increased activity of airport. 1 FT Equipment/Fleet Manager – Required to manage increasing equipment of the airport. Custodial 2 PT Custodians – Required to support facility cleaning operations at FBO. Executive Board 1 FT Deputy Director – Potential addition to handle new organizational structure. Finance 1 FT Analyst Addition – To improve analytics and add depth to the department. Ground Handling 1 FT Operations Manager – Required to support increased labor force in Ground Handling. 1 FT Material Handlers – Required to support additional Ground Handling business. 3 PT Material Handlers – Required to support additional Ground Handling business.

Page 23 of 44

Aviation Services- FBO 2 FT Line Service – Required to increase daily Operations coverage from 20hr/day to 24hr/day to support Air Cargo and scheduling changes associated with new contract. 1 PT Line Service – Required to increase daily Operations coverage from 20hr/day to 24hr/day to support Air Cargo scheduling changes associated with new contract. Aviation Services- Ground Handling 1 PT Ramp Agent– Required to cover increased Allegiant activity. Passenger Services 1 FT Passenger Service Agents – Required to support additional travelers with disabilities. 2 PT Passenger Service Agents – Required support additional travelers with disabilities. Transbridge Services 7 PT Trans Bridge Agents – Required to cover new bus services at airport associated with Multimodal project. Planning 1 FT Project Manager Aviation Planning Specialist – Required to assist in the development, coordination and implementation of the overall Airport Authority Capital Improvement Program. Business Development 1 FT Business Development Specialist– Required to support business development projects and manage day-to-day interaction with stakeholders. Properties 1 FT Property Specialist – Required to Provides day-to-day coordination of property management and enhance tenant relations.

Page 24 of 44

a Year 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018b Month JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTALS

c Beginning Cash 9,266,864$ 8,299,802$ 7,696,196$ 7,925,210$ 7,537,528$ 5,934,486$ 4,986,256$ 4,812,514$ 5,435,457$ 5,876,827$ 5,480,551$ 5,334,558$

1LNAA Total Operating Revenues 2,428,539$ 2,372,058$ 2,594,892$ 2,505,661$ 2,383,027$ 2,408,651$ 2,541,944$ 2,603,563$ 2,547,385$ 2,576,903$ 2,547,066$ 2,688,688$ 30,198,377$

2LNAA Oper. Expenses & COS Labor $ (2,167,660) $ (1,932,329) $ (2,146,503) $ (2,068,085) $ (1,890,306) $ (2,083,125) $ (2,148,823) $ (2,100,960) $ (2,004,457) $ (2,144,676) $ (2,029,379) $ (2,242,866) (24,959,169)$

3Fuel Inventory Purchases (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$ (168,000)$

4Queen City Income (Loss) $ 1,426 $ 10,680 $ (1,168) $ 8,524 $ 4,373 $ 18,379 $ 11,510 $ 11,167 $ 16,996 $ 11,182 $ 11,919 $ 6,609 111,597$

5Braden Airpark Income (Loss) $ (9,414) $ (6,790) $ (12,416) $ (9,689) $ (8,588) $ (9,453) $ (8,825) $ (9,734) $ (8,667) $ (7,342) $ (6,811) $ (8,929) (106,658)$

6 Event (Loss) $ - $ - $ - $ - $ (2,000) $ - $ - $ (50,000) $ (4,000) $ (4,000) $ - $ (2,500) (62,500)$ 7 Net Interest $ 4,500 $ 3,500 $ 3,500 $ 3,500 $ 3,500 $ 3,500 $ 3,500 $ (5,500) $ (5,500) $ (5,500) $ (5,500) $ (5,500) (2,000)$ 8 Debt Service (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (275,261)$ (3,303,132)$

9Estimated Airline Settlement (600,000)$ (600,000)$

10BMO Lease Reimbursements 860,000$ 500,000$ 1,360,000$

11Transfers from PFC to Operating 200,000$ 200,000$ 400,000$ 100,000$ 100,000$ 200,000$ 1,200,000$

12 CFC Funds 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 300,000$ 13 Bond Project Funds -$

14

Funds Available before Capital Purchases, Lease Payments, & Grant Receipts 9,305,994$ 8,328,660$ 8,576,240$ 8,146,860$ 7,609,273$ 5,654,177$ 4,967,301$ 4,942,789$ 6,058,953$ 5,985,133$ 5,579,585$ 5,551,799$

CIP Cash Flow 15 Lease Payments (146,000)$ (146,000)$ (223,339)$ (146,000)$ (146,000)$ (223,339)$ (146,000)$ (146,000)$ (223,339)$ (146,000)$ (146,000)$ (223,339)$ (2,061,354)$

16

Capital Purchases/Local Contributions (1,273,942)$ (773,942)$ (841,442)$ (741,442)$ (1,981,442)$ (641,442)$ (461,442)$ (611,442)$ (411,442)$ (411,442)$ (551,682)$ (393,942)$ (9,095,044)$

17 FAA/PA Grant 413,750$ 287,478$ 413,750$ 278,110$ 452,655$ 196,860$ 452,655$ 1,250,110$ 452,655$ 52,860$ 452,655$ 52,860$ 4,756,398$ 18 Ending Cash 8,299,802$ 7,696,196$ 7,925,210$ 7,537,528$ 5,934,486$ 4,986,256$ 4,812,514$ 5,435,457$ 5,876,827$ 5,480,551$ 5,334,558$ 4,987,379$ (6,400,000)$

19Required Bond Cash Reserve 4,164,000$ 4,164,000$ 4,164,000$ 4,164,000$ 4,164,000$ 4,164,000$ 4,164,000$ 4,164,000$ 4,164,000$ 4,164,000$ 4,164,000$ 4,164,000$

20Unrestricted Cash (18-19) 4,135,802$ 3,532,196$ 3,761,210$ 3,373,528$ 1,770,486$ 822,256$ 648,514$ 1,271,457$ 1,712,827$ 1,316,551$ 1,170,558$ 823,379$

Notes to Items:8 Debt Service with BMO Harris. 9 (Payment)/Credit from Airlines for prior year results for Airfield, Terminal, & Apron.

10 BMO Lease Line is reimbursed at $500K increments13 Bond Construction Project Fund has approximate $4.2 million balance as of January 1, 2018; when Project Funds are used, they are shown on line #13. 15 Lease Payments include capital items for the Constellation Energy Project and use of both the Tetra & BMO Lease Lines of Credit.16 Capital Purchases updated to include 2018 Capital Improvement Plan (CIP).19 Bond Cash Requirement must be met on 12/31 of every year; Bond Cash Reserve = 1/6 of 2017 Budgeted Expenses + $500,000.

Other Notes:A Bank Lines of Credit are not shown on exhibit but may be potential sources of Cash.B Net Changes to Receivables and Payables assumed to be zero.C Net LNAA cash used for capital in 2018 is $6,400,000.

Lehigh-Northampton Airport Authority2018 Budgeted Month by Month Cash Flow Projection

Page 25 of 44

Net Income, $5,209,661 , 45%

PFC, $1,200,000 , 10%

EST. 2018 FAA/PA Grant Receipts,

$4,756,398 , 42%

CFC, $300,000 , 3%

Lehigh-Northampton Airport Authority 2018 Available Cash

Total Available Cash $11,466,059

Page 26 of 44

CIP Funds (not leased),

$4,338,646 , 45% Bond Debt

Service, $3,303,132 , 34%

Capital Lease Payments,

$2,061,354 , 21%

Lehigh-Northampton Airport Authority 2018 Uses of Cash

Total Capital Resources: $6,400,000

Page 27 of 44


Braden Airpark

APPENDIX A

Page 28 of 44


2018 Airline Rates and Charges

Lehigh Valley International Airport

Provided by Unison Consulting, Inc.

Page 29 of 44

Budget Budget

2018 2017

Salaries and Wages 9,208,355$ 7,874,098$

Payroll Taxes 697,444 602,368

Employee Benefits 3,269,311 3,271,601

Subtotal ‐ Personnel Costs 13,175,110$ 11,748,067$

Professional Services 435,388 445,080

Legal Services 293,000 181,000

Audit and Financial Services 81,125 110,000

Public Relations 49,000 46,500

Contract Services 976,351 867,555

Advertising Expense 247,578 327,914

Printing 17,415 18,910

Postage 9,040 5,340

Dues and Subscriptions 212,658 104,465

Office Supplies 53,484 52,130

Telephone 120,971 109,724

Training and Seminars 133,851 115,205

Business and Travel Related 121,630 85,558

Hospitality 26,120 26,875

Equipment Rental 2,055,228 1,330,046

Materials & Supplies 584,583 506,591

Maintenance Repairs 820,223 801,883

Heating Gas & Oil 379,728 354,180

Electricity 676,786 679,057

Water 103,300 101,112

Refuse Collection 37,957 46,133

Uniforms 73,673 65,240

Insurance 448,281 420,156

Real Estate Taxes 108,949 108,949

Payment in Lieu of Taxes 448,300 448,300

Interest Expense 56,000 74,001

Credit Card Fees 174,122 174,437

Bad Debt Expense ‐ ‐

Miscellaneous 62,510 44,230

Subtotal Other Operating Expenses 8,807,251$ 7,650,571$

Total Operating Expenses 1 21,982,361$ 19,398,638$

COST OF SALES ‐ NOT ALLOCATED

Cost of Sales ‐ Aviation Services 3,395,174 2,644,823

Cost of Sales ‐ GA Airports 738,345 757,448

Subtotal Cost of Sales 4,133,519$ 3,402,271$

Total Operating Expenses and COS 26,115,880$ 22,800,909$

Total Operating Expense Allocation

Airfield 4,495,642$ 4,031,241$

Terminal 4,973,198 4,671,773

Parking and Roadways 1,274,655 1,177,029

Aviation Leased Areas 960,613 989,722

Non‐Aviation Leased Areas 231,864 224,215

Aviation Services 851,486 822,710

Ground Handling 5,164,915 3,792,334

GA Airports 362,373 370,616

Advertising 85,985 110,184

Administration 3,581,630 3,208,814

Total Operating Expenses 1 21,982,361$ 19,398,638$

Source: Authority Management.1 GA Airport expenses included in this total.

TABLE 1

LEHIGH‐NORTHAMPTON AIRPORT AUTHORITY

LEHIGH VALLEY AIRPORT SYSTEM

OPERATING EXPENSES

Operating Expenses

Page 30 of 44

Budget Budget

2018 2017

Airfield:

Landing Fees 5,145,345$ 4,199,990$

Apron Parking Fees 570,619 487,047

Land Rentals ‐ 90,060

Security 63,842 63,634

Other 91,667 205,000

Total Airfield Fees 5,871,473$ 5,045,731$

Terminal:

Airline Rent 2,403,157$ 2,754,333$

Per Turn Fees 635,734 335,061

Passenger Support Services 395,741 331,626

Security 118,564 118,177

Concession& Other Rents 618,922 518,421

Rental Cars 1,362,116 1,374,405

Restaurant/Newsstand 220,000 220,605

Other 34,000 27,121

Utility Fees & Other 30,000 30,399

Total Terminal Rents 5,818,234$ 5,710,148$

Parking & Roadways 4,638,810$ 4,586,999$

Aviation Leased Areas:

Hangar 1 Rental 57,870$ 56,738$

Hangar 2 Rental 62,232 33,995

Hangar 3 Rental 313,466 262,589

Hangar 5 Rental 21,726 21,112

Hangar 7 Rental 345,606 276,857

Hangar 8 Rental 153,012 188,007

Hangar 9 Rental 748,565 751,848

Hangar 10 Rental 504,310 491,989

T‐Hangars 185,525 191,610

Air Cargo Building & Land Rents 100,000 100,870

Ramp & Gatecard Fees 34,124 35,246

Total Aviation Leased Areas 2,526,436$ 2,410,861$

Non‐Aviation Leased Areas:

Building Rents 635,128$ 404,553$

Land Rentals 112,722 ‐

Total Non‐Aviation Rents 747,850$ 404,553$

Aviation Services:

Gross Fuel Sales 1,646,996$ 1,361,598$

Landing Fees 145,295 145,588

Into Plan Fees 2,232,328 2,030,969

Hangar & Ramp Rentals 200,760 200,927

Miscellaneous Income 5,000 ‐

Total Aviation Services 4,230,379$ 3,739,082$

Ground Handling and Other:

Ground Handling and Other 6,054,994$ 4,620,471$

Total Ground Handling and Other 6,054,994$ 4,620,471$

Advertising:

Advertising 302,369$ 303,114$

Total Advertising 302,369$ 303,114$

GA Airports:

Hangar & Ramp Rentals 559,662$ 575,165$

Fuel Sales ‐ FBO 545,998 613,791

Pilot Supplies Sales ‐ 16

Miscellaneous Income ‐ 750

Total GA Airports 1,105,660$ 1,189,722$

Total Operating Revenue 1

31,296,205$ 28,010,681$

Source: Authority Management.1 GA Airport revenues included in this total.

TABLE 2



OPERATING REVENUES

OPERATING REVENUE

Page 31 of 44

Budget Budget

2018 2017

Direct Operating Expenses 4,495,642$ 4,031,241$

Indirect Operating Expenses 644,693 713,961

O&M Reserve Requirement 1 65,856 125,269

Debt Service 15,278 15,261

Debt Service Coverage 3,819 3,815

Amortization of Capital Expenditures 600,000 160,000

Total Requirement 5,825,288$ 5,049,547$

LESS: Apron Expenses 2 514,034 474,520

LESS: Apron O&M Reserve 6,586 12,527

LESS: Previous Year's Debt Service Coverage 3,815 3,816

LESS: World Fuel Annual Incentive 91,667 205,000

LESS: Land Rent Credit ‐ 90,060

LESS: Security Surcharge (35%) 63,842 63,634

Net Requirement 5,145,345$ 4,199,990$

Total Airline Landed Weight (000 lbs.) 1,085,828 850,162

Airline Landing Fee 4.74$ 4.94$

Airline Landing Fees 5,145,345$ 4,199,990$

1.) Represents 2 months (1/6) of the incremental change in O&M Expenses.

2.) Equals 10% of Direct and Indirect Airfield expenses.

TABLE 3



LANDING FEE RATE

Landing Fee Rate

Page 32 of 44

Budget Budget

2018 2017

Direct Operating Expenses 514,034$ 474,520$


Amortization of Capital Expenditures 50,000 ‐

Total Requirement 570,619$ 487,047$

LESS: Non‐Signatory Paid Premiums/Diversions ‐ ‐

Net Requirement 570,619$ 487,047$

Total Landed Weight 1,085,828 850,162

Annual Apron Fee 0.53$ 0.57$


TABLE 4



APRON FEE

Apron Fee

Page 33 of 44

Budget Budget

2018 2017

Direct Operating Expenses 4,973,198$ 4,671,773$

Indirect Operating Expenses 977,785 876,006


Debt Service 849,715 848,791

Debt Service Coverage 212,429 212,198

Amortization of Capital Expenditures 76,576 26,576

Total Requirement 7,156,903$ 6,672,489$

LESS: Previous Year's Debt Service Coverage 212,198 212,223

LESS: Passenger Support Services 2 395,741 331,626

LESS: Security Surcharge (65%) 118,564 118,177

Net Requirement 6,430,400$ 6,010,462$

Total Rentable Space 75,812 75,812

Total Administrative Space 9,009 9,009

Total Rentable and Admin Space 84,821 84,821

Blended Terminal Rental Rate 75.81$ 70.86$

Wiley Space Terminal Rental Rate 25.31$

Weighted Average Terminal Rental Rate 3 79.84$

Airline Space 52,943 52,943

Airline Rented Space 50,589 50,589

Airline Terminal Rental Revenue 4,038,998$ 3,584,717$


2.) Represents the charges associated with customer service in the Airport (ex. Curbside check in assistance).

3.) Wiley Space is charged at 31.7% of the other Terminal space. The Blended Terminal Rate calculates a rate

based on all space being treated equally. The Weighted Average Terminal Rental Rate is the true

Terminal Rental Rate based on the different categories of space.

TABLE 5



TERMINAL RENTAL RATE

Terminal Rental Rate

Page 34 of 44

Budget Budget

2018 2017

Projected Terminal Fees 4,038,998 3,584,717

Projected Enplanements 364,812 363,623

Annual Rental Cost per Enplanement [ A ] 11.07$ 9.86$

Projected Enplanements 364,812 363,623

Gates in Use 7 7

Projected Enplanements per Gate [ B ] 52,116 51,946

Average Rental Fee per Gate [ A * B = C ] 577,000$ 512,102$

Total Passenger Operations 5,521 5,619

Days 365 365

Passenger Operations per Day 15.13 15.39

Total Gates in Use 7 7

Passenger Operations per Day per Gate 1 2.16 2.20

Days 365 365

Total Turns per Gate per Year [ D ] 788.71 802.67

Projected Gate Cost per Turn [ C/D = E ] 731.57$ 638.00$

Estimated Ground Handling Fee

Estimated Salary Cost Per Hour 18.78$ 18.59$

Benefits/Payroll Tax % 49% 49%

Est. Hours per Turn 15 15

Est. Non Salary Expense % 15% 15%

Estimated Ground Handling Fee per Turn 482.64$ 477.86$

Projected Terminal Fees per Turn 731.57$ 638.00$

Estimated Ground Handling Fee per Turn 482.64$ 477.86$

Total Fees per Turn 1,214.21$ 1,115.86$

Additional Fees

Landing Fee (per 1,000 lbs.) 4.74$ 4.94$

Apron Fee (per 1,000 lbs. of landed weight) 0.53$ 0.57$

Security Fee (per enplanement) 0.50$ 0.50$

1.) Operations estimated by the Airport Authority.

TABLE 6



PER TURN FEE

Per Turn Fee

Page 35 of 44

Budget Budget

2018 2017

Passenger Airline Landing Fees 1,990,840$ 1,836,889$

Airline Terminal Rents 2,403,157 2,754,333

Per Turn Fees 635,734 335,061

Passenger Airline Apron Revenue 570,619 487,047

Passenger Support Services 395,741 331,626

Security Surcharge 1 182,406 181,811

Total Airline Revenues 6,178,498$ 5,926,767$

Enplanements 364,812 363,623

Airline Cost Per Enplanement 16.94$ 16.30$

1.) Security Surcharge is $0.50 per enplaned passenger.

TABLE 7



PASSENGER AIRLINE COST PER ENPLANEMENT

Airline Cost per Enplanement

Page 36 of 44

Budget Budget

2018 2017

Airline Landing Fees 5,145,345$ 4,199,990$

Airline Apron Fees 570,619 487,047

Airline Terminal Rentals 1 3,038,892 3,089,393

Nonairline Revenues 2 18,407,831 16,831,979

Operating Revenues 2 27,162,686$ 24,608,410$

Operating Expenses 21,982,361$ 19,398,638$

Net Operating Income 5,180,325$ 5,209,772$

Debt Service 3,306,852$ 3,303,657$

O&M Reserve Requirement 430,621 497,433

Renewal and Replacement Requirement ‐ ‐

Subordinated Indebtedness ‐ ‐

Capital Expenditures ‐ ‐

Net Deposit to General Fund 1,442,853$ 1,408,682$

Net Operating Income 5,180,325$ 5,209,772$

Plus: Transfers

Coverage from Landing Fee 3,819 3,815

Coverage from Terminal Rate 126,695 126,558

Transfers ‐ ‐

Net Revenues 5,310,840$ 5,340,145$

Debt Service 3,306,852$ 3,303,657$

Net Revenue Requirement 3 1.61 1.62

1.) Includes per turn revenue.

2.) Net of cost of sales.

3.) The Net Revenue Requirement per the Series 2015 bond covenant established that the Net Revenue Requirement

ratio has to be at least 1.57 the Aggregate Debt Service for such period.

TABLE 8



CASH FLOW

Cash Flow and Net Revenue Requirement

Page 37 of 44

BOND RATE MAINTENANCE COVENANT

Under the covenant the Authority agrees that it shall at all times fix, revise, charge and collect rentals,rates, fees and other charges for the use of the Airport in order that in each Fiscal Year the Net Revenuesshall at least equal 1.57 times the Aggregate Debt Service for such period.

The 2018 Budget is set at a rate of 1.61 times the aggregate debt service. Following is that computation:

* Net Revenues 5,310,840$

** Aggregate Debt Service 3,306,852$

Coverage: Net Revenues / Aggregate Debt Service 1.61

* Refer to Table 8 of the Rates and Charges for the calculation of this number

** Annual amount to be deposited to cover the annual Debt Service requirement. Payments are made in equal monthly installments to trustee.


Page 38 of 44


Braden Airpark

EXHIBITS

Page 39 of 44

APPROVED 5 YEAR CAPITAL IMPROVEMENT PROGRAMLEHIGH-NORTHAMPTON AIRPORT AUTHORITY

EXHIBIT A: 2018 - 2022NOVEMBER 28, 2017

2018 Capital Improvements Total Cost LNAA Share 2019 Capital Improvements LNAA Share 2020 Capital Improvements LNAA Share 2021 Proposed Capital Improvements LNAA Share 2022 Capital Improvements LNAA Share

LEHIGH VALLEY INTERNATIONAL AIRPORT LEHIGH VALLEY INTERNATIONAL AIRPORT LEHIGH VALLEY INTERNATIONAL AIRPORT LEHIGH VALLEY INTERNATIONAL AIRPORT LEHIGH VALLEY INTERNATIONAL AIRPORT(State Grant) - Main Terminal Renovations - PH. I/II Design/Cons. $1,366,000 $341,500 Runway 6/24 Rehabilitation - PH.I Construction $650,000 Runway 6/24 Rehabilitation - Construction - PH.II $650,000 Runway 6/24 Rehabilitation - Construction - PH.III $700,000 Runway 6/24 Rehabilitation - Construction - PH.IV $500,000FAA 101-2016 - Master Plan Update & Obstruction Study $480,000 $24,000 Land Reimbursements $100,000 LVIA Grant Projects Sub-Total $650,000 Relocate Taxiway "E" - Design $8,750 LVIA Grant Projects Sub-Total $500,000FAA 102-2016 - Runway 6/24 Rehabilitation - PH.I Design $135,000 $6,750 LVIA Grant Projects Sub-Total $750,000 LVIA Grant Projects Sub-Total $708,750FAA 103-2017 - Acquire (2) Pieces of Snow Removal Equipment $1,234,239 $66,000 QUEEN CITY AIRPORT QUEEN CITY AIRPORTFAA 104-2017 - Runway 6/24 Rehabilitation - PH.II Design $1,540,000 $77,000 QUEEN CITY AIRPORT Obstruction Removal - Design/Construction $37,500 QUEEN CITY AIRPORT Rehabilitate Runway 15/33 - PH.II Construction $90,000(2018 Grant) Runway 6/24 Rehablitiataion - PH.I Construction $1,000,000 $50,000 Construct T-Hangars (State) - PH.II Construction $500,000 Rehabilitate Runway 15/33 - PH.I Design $20,000 Snow Removal Equipment Building - PH.II Construction $125,000(State Grant) - Hangar 11 Design/Construction $13,000,000 Grant/Loan Rehabilitate Taxiway "B" - PH.I Design 5000 Queen City Grant Projects Sub-Total $537,500 Rehabilitate Taxiway "B" - PH. II Construction $40,000 Realign/Construct Taxiway 'C' $68,421Air Cargo Apron Expansion - AIP Restricted $700,000 $700,000 Acquire Snow Removal Equipment $25,000 Snow Removal Equipment Building - PH.I Design $4,000 Queen City Grant Projects Sub-Total $283,421LVIA Grant Projects Sub-Total $19,455,239 $1,265,250 Construct T-Hangars (State) - PH. I Design $250,000 Queen City Grant Projects Sub-Total $64,000

Queen City Grant Projects Sub-Total $280,000 BRADEN AIRPARK BRADEN AIRPARKQUEEN CITY AIRPORT Construct T-Hangars (State) - PH.I Design $150,000 BRADEN AIRPARK Misc. Hangar Repairs $100,000

FAA 20-2016 - Stormwater Management Study $100,000 $5,000 BRADEN AIRPARK Braden Airpark Grant Projects Sub-Total $150,000 Construct T-Hangars (State) - PH.II Construction $500,000 Braden Airpark Grant Projects Sub-Total $100,000FAA 21-2017 - Obstruction Removal EA $88,700 $4,435 (State Grant) New Terminal Building - PH.II Construction $162,500 Braden Airpark Grant Projects Sub-Total $500,000FAA 22-2017 - Master Plan Update $163,700 $8,185 Braden Airpark Grant Projects Sub-Total $162,500Queen City Grant Projects Sub-Total $352,400 $17,620

BRADEN AIRPARK(State Grant) New Terminal Building - PH.I Design/Construction $325,000 $162,500Braden Airpark Grant Projects Sub-Total $325,000 $162,500

TOTAL FOR GRANT PROJECTS $20,132,639 $1,445,370 TOTAL FOR GRANT PROJECTS $1,192,500 TOTAL FOR GRANT PROJECTS $1,337,500 TOTAL FOR GRANT PROJECTS $1,272,750 TOTAL FOR GRANT PROJECTS $883,421

Renovate Terminal/FBO/XLL Bathrooms $300,000 $300,000 Replace Departure Elevator & Escalators - PH. III Construction $2,880,000 Main Terminal Renovations - Security Connector - PH.II Construction $3,580,000 Main Terminal Renovations - Security Connector - PH.III Construction $3,580,000 Main Terminal Renovations - Security Connector - PH.IV Construction $3,580,000Parking Lot Rehabilitation (pavement/booth/equipment) - PH. II $190,000 $190,000 Parking Lot Rehabilitation (pavement/booth/equipment) - PH. III $1,000,000 Parking Lot Rehabilitation (pavement/booth/equipment) - PH. IV $2,000,000 Snow Removal Equipment Building - Construction $2,500,000 Misc. Landside Pavement Repairs/Rehabilitation & Crack Sealing $800,000TSA/Wyle Roof Repairs $813,560 $600,000 ABE Cargo Building/Apron Development - PH.I Design $1,000,000 ABE Cargo Building/Apron Development - PH. II Construction $4,000,000 ABE Cargo Building/Apron Development - PH.III Construction $6,000,000Tunnel Repairs $720,000 $566,000 Main Terminal Renovations - Security Connector - PH.I Design $680,000 Snow Removal Equipment Building - Design $650,000 Misc. Airside Pavement Rehabilitations $1,000,000Upgrade/Replace Hangar 7 Sprinkler System - PH. II $844,000 $844,000 Rehabilitate Main Air Carrier Apron - Design $600,000 Rehabilitate Main Air Carrier Apron - Construction $1,500,000 Misc. Landside Pavement Repairs/Rehabilitation & Crack Sealing $800,000ABE General Aviation Pavement Rehabiliation/Repairs - PH.I $500,000 $500,000 Misc. Landside Pavement Repairs/Rehabilitation & Crack Sealing $800,000 Misc. Landside Pavement Repairs/Rehabilitation & Crack Sealing $800,000Office Renovations/Relocation - Design & Construction $220,000 $220,000Misc. Landside Pavement Repairs/Rehabilitation & Crack Sealing $400,000 $400,000Relocate Telephone & Fiber Optic Systems - Demarcation $150,000 Lease Item

TOTAL MAJOR NON-GRANT PROJECTS $4,137,560 $3,620,000 TOTAL MAJOR NON-GRANT PROJECTS $6,960,000 TOTAL MAJOR NON-GRANT PROJECTS $12,530,000 TOTAL MAJOR NON-GRANT PROJECTS $13,880,000 TOTAL MAJOR NON-GRANT PROJECTS $4,380,000

ARFF ARFF ARFF ARFF ARFFAcquire SCBA Bottles $10,400 Lease Item Acquire High Speed Fire Station Doors $120,000 Acquire Enclosed Trailer $5,000 Acquire Mobile Incident Command Vehicle $15,000 Acquire ATV & Trailer $16,000Renovate ARFF Lounge & Hall $22,000 $22,000 ARFF Sub-Total $120,000 Acquire Air Bag Aircraft Lift System $15,000 ARFF Sub-Total $15,000 ARFF Sub-Total $16,000ARFF Sub-Total $32,400 $22,000 ARFF Sub-Total $20,000

Operations & Safety Administrative Operations & Safety Administrative Operations & Safety AdministrativeOperations & Safety Administrative Operations & Safety Administrative Sub-Total $0 Operations & Safety Administrative Acquire/Install Additional CCTV Cameras (5) $15,000 Acquire/Install Additional CCTV Cameras (5) $15,000

Renovate Operations Officer Office $20,000 $20,000 Acquire/Install Additional CCTV Cameras (10) $30,000 Operations & Safety Administrative Sub-Total $15,000 Operations & Safety Administrative Sub-Total $15,000Renovate Reception Area $10,000 $10,000 Operations Center Acquire Security Infrastructure Detection/Prevention Systems $50,000Operations & Safety Administrative Sub-Total $30,000 $30,000 Computer Aided Dispatch $220,000 Acquire Replacement Furniture $30,000 Operations Center Operations Center

IP Based Dispatch Console Upgrade $100,000 Operations & Safety Administrative Sub-Total $110,000 Acquire Replacement Camera Display Monitors $6,000 Replace Telecommunications Equipment $10,000Operations Center Operations Center Sub-Total $320,000 Acquire Multi-Channel Audio Recording System $15,000 Operations Center Sub-Total $10,000

Operations Center Sub-Total $0 Operations Center Replace Telecommunications Equipment $10,000Operations Replace Telecommunications Equipment $10,000 Operations Center Sub-Total $31,000 Operations

Operations Acquire Gate Management Software $10,000 Operations Center Sub-Total $10,000 Operations Sub-Total $0Acquire Operations Vehicle (Pickup) $45,000 Lease Item Acquire Operations Vehicle (Pickup) $45,000 OperationsAcquire Operations Vehicle (SUV) $50,000 Lease Item Operations Sub-Total $55,000 Operations Acquire In-Car BioAcoustic Bird Dispersal System $35,000 PoliceAcquire CFME $75,000 Lease Item Acquire In-Car Airfield Condition Reporting System $35,000 Acquire Office Furniture $6,000 Police Sub-Total $0Acquire 4x4 Utility Vehicle $25,000 Lease Item Police Acquire In-Car Airfield Inspection Management System $20,000 Operations Sub-Total $41,000Operations Sub-Total $195,000 $0 Acquire In-Car Video & Body Camera Systems $60,000 Operations Sub-Total $55,000 Airside - Maintenance

Modify Operations Vehicle for Canine Unit $10,000 Police Misc. Pavement Repairs/Crack Sealing $600,000Police Police Sub-Total $70,000 Police Acquire Replacement Vehicle (#95) $40,000 Acquire Replacement 3 cubic yard rubber tire loader (1984) $100,000

Acquire Weapons/Safety Gear (Witmer Public Safety Group) $7,300 $7,300 Acquire replacement K9 Vehicle (#98) $50,000 Police Sub-Total $40,000 Replacement 4-wheel drive Utility Body Pickup w/Plow (2008) $60,000Acquire Tasers (AXON) $6,500 $6,500 Airside - Maintenance Police Sub-Total $50,000 Airfield Sub-Total $760,000Acquire F150 Police Vehicle $46,000 Lease Item Misc. Pavement Repairs/Crack Sealing $300,000 Airside - MaintenanceRenovate Station Work Area $7,500 $7,500 Acquire 12,000 gal. Airfield Deicing Fluid Storage Tank $30,000 Airside - Maintenance Misc. Pavement Repairs/Crack Sealing $600,000 Landside/Terminal - MaintenanceWeapons Cache (Duty Packages) $7,500 $7,500 Acquire Two (2) Replacement Airfield Vehicle Gate Operators $100,000 Misc. Pavement Repairs/Crack Sealing $300,000 Acquire Replacement 4-wheel drive Pickup w/Plow (1997) $50,000 Replace HVAC Mixing Boxes in Wiley Post Concourse $1,500,000Police Sub-Total $74,800 $28,800 Acquire Front-end Loader $20,000 Acquire Replacement Truck-Mount Airfield Painting Machine $100,000 Acquire Replacement MIG Welding Equipment $25,000 Replace Passenger Boarding Bridges - PH. IV $600,000

Airfield Sub-Total $450,000 Acquire Replacement 20' Ramp Snow Plow Blade $20,000 Airfield Sub-Total $675,000 Terminal Sub-Total $2,100,000Airside - Maintenance Acquire Replacement Vehicle Emissions/Diagnostic Equip. $10,000

Replace ABE Rotating Beacon $150,000 Lease Item Landside/Terminal - Maintenance Acquire Two (2) Replacement Airfield Vehicle Gate Operators $100,000 Landside/Terminal - Maintenance Parking and Roadways - MaintenanceConcrete ramp repairs-H7,H8,Main Terminal $136,735 $136,735 Elevator Rehabilitation $60,000 Airfield Sub-Total $530,000 Replace Admin. Office Windows $400,000 Parking and Roadways Sub-Total $0Replace Maintenance Fuel Farm Piping/Fuel Management System $30,000 $30,000 Repair/Replace Baggage Claim conveyors/Carousels $500,000 Acquire Replacement Baggage Carts (20) $30,000Acquire VMAG - Gate 8 $50,000 Lease Item Acquire Replacement HVAC #5 in Main Terminal $100,000 Landside/Terminal - Maintenance Replace RTAA Air Cooled Chiller for Wiley Post Concourse $1,000,000 Aviation Leased - MaintenanceAcquire Gate & Operator - Gate 24 $20,000 Lease Item Rehabilitate Main Terminal Restrooms - PH.II $100,000 Rehab. Interior Passenger Entrance/Exit Vestibules (All) $750,000 Replace Passenger Boarding Bridges - PH. III $600,000 Rehabilitate T-Hangars (ABE) $500,000Acquire Toro 72’’ zero turn mower $12,500 Lease Item Acquire Replacement Baggage Carts (20) $15,000 Acquire Replacement Baggage Carts (20) $15,000 Terminal Sub-Total $2,030,000 Aviation Leased Sub-Total $500,000Acquire Air Compressor $25,000 Lease Item Replace Departure Bldg. HVAC units w/ Single Unit & VAV $150,000 Main Terminal Emergency Electrical Generators - Construct $1,500,000Replace Electrictian Truck #46 truck bed $8,500 Lease Item Main Terminal Emergency Generators - Design $60,000 Replace Passenger Boarding Bridges - PH.II $600,000 Parking and Roadways - Maintenance Non-Aviation Leased - MaintenanceJetbridge 3 Removal $50,000 $50,000 Install Security Bollards - Lower Level Roadway $20,000 Terminal Sub-Total $2,865,000 Parking and Roadways Sub-Total $0 Miscellaneous Structures Demolition (ABE/N43) - PH. V $35,000Acquire Mechanics Truck $45,000 Lease Item Replace Passenger Boarding Bridges - PH. I $600,000 Non-Aviation Leased Sub-Total $35,000Acquire EZ Liner Paint Machine $85,000 Lease Item New Millwork for Departure $50,000 Parking and Roadways - Maintenance Aviation Leased - MaintenanceAcquire Graco Riding Paint Machine $23,000 Lease Item Terminal Sub-Total $1,655,000 Parking and Roadways Sub-Total $0 Repair Various Pavements at Hangar 7 and Hangar 9 $100,000Acquire Forklift $28,000 Lease Item Repaint Exterior of Office Core at Hangar 9 $50,000Acquire Tires for CAT Loader #70 $8,000 Lease Item Parking and Roadways - Maintenance Aviation Leased - Maintenance Aviation Leased Sub-Total $150,000Airfield Sub-Total $671,735 $216,735 Rehabilitate Maintenance Roadway/Parking $600,000 Replace Office Core Windows for Hangar 7 $500,000

Parking and Roadways Sub-Total $600,000 Repaint Exterior Structure of Hangar 7 $200,000 Non-Aviation Leased - MaintenanceLandside/Terminal - Maintenance Aviation Leased Sub-Total $700,000 Miscellaneous Structures Demolition (ABE/N43) - PH. IV $35,000

Passenger Boarding Bridge Refurbishment/Replacement $250,000 Lease Item Aviation Leased - Maintenance Rehabilitate Roof for 995 Postal Road Facility $100,000Terminal Brick Repointing $60,000 $60,000 Replace Hangar 7 Doors $600,000 Non-Aviation Leased - Maintenance Non-Aviation Leased Sub-Total $135,000Replace HVAC - Old Departure $80,000 Lease Item Replace N43 Hangar Doors $100,000 Miscellaneous Structures Demolition (ABE/N43) - PH. III $75,000New Carpet for Terminal Areas - PH.II (Baggage Claim) $60,000 Lease Item Hangar 3 Office Core Roof Repair $40,000 Rehabilitate Roof for 997 Postal Road Facility $100,000Replace Air Handler Unit 4&5 $100,000 Lease Item Acquire Replacement Emergency Generator at Hangar 3 $35,000 Rehabilitate Roof for Car Wash Facility (Formerly Hangar 1) $75,000Replace Main Terminal Vestibule Doors $18,000 Lease Item Aviation Leased Sub-Total $775,000 Non-Aviation Leased Sub-Total $250,0003rd Floor Lighting Replacement $10,000 $10,000Acquire Floor Extractor - Wiley Custodial $18,000 Lease Item Non-Aviation Leased - MaintenanceAcquire Autoscrubber - Custodial $5,000 Lease Item Miscellaneous Structures Demolition (ABE/N43) - PH. II $100,000Replace Baggage Makeup Doors (2) $20,000 Lease Item Old Terminal (Gov't Building) Building Assessment $90,000Acquire new Terminal Signage $30,000 Lease Item Replace Maintenance Facility Fuel Tanks $600,000Rehabilitate Main Terminal Generator $50,000 Lease Item Non-Aviation Leased Sub-Total $790,000Acquire HVAC Technician Van $36,000 Lease ItemAcquire Painters Van $36,000 Lease ItemAcquire Equipment Trailer $20,000 Lease ItemTerminal Re-Painting $250,000 $250,000Terminal Sub-Total $1,043,000 $320,000

FAA & STATE GRANT PROJECTS

OPERATIONS & SAFETY

MAJOR NON-GRANT PROJECTS MAJOR NON-GRANT PROJECTS MAJOR NON-GRANT PROJECTS MAJOR NON-GRANT PROJECTS


MAJOR NON-GRANT PROJECTS

FAA & STATE GRANT PROJECTS FAA & STATE GRANT PROJECTS

OPERATIONS & SAFETYOPERATIONS & SAFETY OPERATIONS & SAFETY OPERATIONS & SAFETY


Page 40 of 44

APPROVED 5 YEAR CAPITAL IMPROVEMENT PROGRAMLEHIGH-NORTHAMPTON AIRPORT AUTHORITY

EXHIBIT A: 2018 - 2022NOVEMBER 28, 2017

2018 Capital Improvements Total Cost LNAA Share 2019 Capital Improvements LNAA Share 2020 Capital Improvements LNAA Share 2021 Proposed Capital Improvements LNAA Share 2022 Capital Improvements LNAA Share

Parking and Roadways - MaintenanceRepair Upper Roadway Stormwater Inlets $30,000 $30,000Acquire Salt Storage Bin $80,000 Lease ItemAcquire Roadway Signage $250,000 Lease ItemParking and Roadways Sub-Total $360,000 $30,000

Aviation Leased - MaintenanceReplace Hangar 3 Rapid Air Heating Unit $150,000 Lease ItemReplace Hangar 9/ARFF Boiler $321,000 $280,000T-Hangar Roof Repairs $80,000 $80,000Replace Hangar 8 Gutters $16,000 $16,000Aviation Leased Sub-Total $567,000 $376,000

Non-Aviation Leased - MaintenanceMiscellaneous Structures Demolition - PH. II $100,000 $100,000Non-Aviation Leased Sub-Total $100,000 $100,000

TOTAL OPERATIONS AND SAFETY $3,073,935 $1,123,535 TOTAL OPERATIONS AND SAFETY $4,835,000 TOTAL OPERATIONS AND SAFETY $4,590,000 TOTAL OPERATIONS AND SAFETY $3,132,000 TOTAL OPERATIONS AND SAFETY $3,436,000

Acquire De-Icing Truck $300,000 Lease Item Existing Fuel Trucks Lease $156,000 Existing Fuel Trucks Lease $156,000 Existing Fuel Trucks Lease $156,000 Existing Fuel Trucks Lease $156,000XLL Airport Sign $90,000 Lease Item XLL Lobby and Facility Upgrades - PH.III $35,000 Hangar 7 Renovations - Phase III $50,000 Renovate/Upgrade Line Services Facility $150,000 Acquire/Install Aircraft Potable Water Cabinet at FBO $47,500N43 Fuel Farm Repairs $15,000 $15,000 Hangar 7 Renovations - Phase II $150,000 Replace/Upgrade Aviation Fuel Farm Fuel Pumps $33,000 Acquire Replacement Customer Transportation Vehicle - XLL $40,000 Acquire Baggage Carts (5) for Airline Services $25,000ABE Fuel Farm Painting $30,000 $30,000 Acquire Ground Power Units - GPU (2) $84,000 Upgrade Ramp & Apron at Hangar 7 $500,000Hangar 7 Renovations - PH.II $20,000 $20,000 Acquire Airline Baggage Carts (5) $15,000 Acquire Property Management Software $20,000XLL Lobby and Facility Upgrades - PH.II $20,000 $20,000 Acquire Belt Loaders (2) $100,000Acquire Aircraft Tug - XLL $50,000 Lease Item Acquire Aircraft Water Cart $50,000Replace Hangar 7 Furniture/Amenities $10,000 $10,000 XLL Fuel Farm $250,000Acquire GPU $58,000 Lease ItemAcquire Pickup w/Plow (2) $90,000 Lease ItemEquipment Storage Building - XLL $60,000 $60,000

TOTAL AVIATION SERVICES - FBO $743,000 $155,000 TOTAL AVIATION SERVICES - FBO $840,000 TOTAL AVIATION SERVICES - FBO $759,000 TOTAL AVIATION SERVICES - FBO $346,000 TOTAL AVIATION SERVICES - FBO $228,500

Acquire Baggage Carts (4) $21,000 Lease Item Acquire K Loader $250,000 Acquire K Loader $250,000 Acquire K Loader $250,000 Acquire Cargo Dollies $35,000Acquire Covered Pushback Tractor (2) $108,000 Lease Item Acquire GPU $60,000 Acquire GPU $60,000 Acquire Tug $50,000Lav Truck $60,000 Lease Item Acquire Tug $50,000 Acquire Cargo Dollies $35,000Acquire Pickup w/Plow $45,000 Lease Item

TOTAL GROUND HANDLING $234,000 TOTAL GROUND HANDLING $360,000 TOTAL GROUND HANDLING $345,000 TOTAL GROUND HANDLING $300,000 TOTAL GROUND HANDLING $35,000

Upgrade Closed Circuit TV (CCTV) Cameras $50,000 Lease Item Upgrade Flight Information Display Systems (FIDS) - PH. II $35,000 Security Access System Repair/Replacement $20,000 MUSE Hardware Replacement/Upgrade Program $14,575 MUSE Hardware Replacement/Upgrade Program $15,000Cardkey Upgrades $40,000 Lease Item Computers and Hardware Replacement/Upgrade $50,000 Upgrade Flight Information Display Systems (FIDS) - PH. III $35,000 Computers and Hardware Replacement/Upgrade $50,000 Computers and Hardware Replacement/Upgrade $50,000Network Upgrades $160,000 Lease Item Software Updates $40,000 Computers and Hardware Replacement/Upgrade $50,000 Hardware (UPS/Switches/Security/Routers) Repair/Replacement $34,100 Software Updates $40,000Replace Desktop Computers & Laptops $50,000 Lease Item Server Replacement $60,000 Software Updates $40,000 Upgrade Flight Information Display Systems (FIDS) - PH. IV $20,000 Server Replacement $50,000Software Updates $40,000 $40,000 Server Replacement $40,000 Software Updates $40,000 Upgrade Flight Information Display Systems (FIDS) - PH. V $20,000FIDS Screen Replacements $85,000 Lease Item Telco Hardware Replacement/Upgrades $7,000 Telco Hardware Replacement/Upgrades $8,750 Hardware (UPS/Switches/Security/Routers) Repair/Replacement $14,100Server Replacement $60,000 Lease Item Telco Hardware Replacement/Upgrades $11,650Acquire IT Work Van $35,000 Lease Item

TOTAL INFORMATION TECHNOLOGY $520,000 $40,000 TOTAL INFORMATION TECHNOLOGY $185,000 TOTAL INFORMATION TECHNOLOGY $192,000 TOTAL INFORMATION TECHNOLOGY $167,425 TOTAL INFORMATION TECHNOLOGY $200,750

Document Management System/Backscanning $150,000 Lease Item Office Furniture Replacement $40,000 Office Furniture Replacement $25,000 Office Furniture Replacement $25,000 Office Furniture Replacement $25,000Advertising Equipment $20,000 $20,000 Document Back-Scanning $250,000Office Furniture Replacement $30,000 $30,000 Acquire Airport Admin Vehicles $150,000Terminal Amenities $20,000 $20,000

TOTAL ADMINISTRATION $220,000 $70,000 TOTAL ADMINISTRATION $440,000 TOTAL ADMINISTRATION $25,000 TOTAL ADMINISTRATION $25,000 TOTAL ADMINISTRATION $25,000

Acquire Short-Bus $60,000 Lease Item Roadway Signage - Phase I $100,000 Roadway Signage - Phase II $100,000 Roadway Signage - Phase III $100,000 Roadway Signage - Phase IV $100,000TOTAL PARKING/PASSENGER SERVICES $60,000 $0 TOTAL PARKING/PASSENGER SERVICES $100,000 TOTAL PARKING/PASSENGER SERVICES $100,000 TOTAL PARKING/PASSENGER SERVICES $100,000 TOTAL PARKING/PASSENGER SERVICES $100,000

Existing Equipment - Capital Lease3 $1,176,000 $1,176,000 Existing Equipment - Capital Lease $2,094,582 Existing Equipment - Capital Lease $3,294,582 Existing Equipment - Capital Lease $2,000,000 Existing Equipment - Capital Lease $2,000,000Existing Constellation Energy Savings Lease3 $309,355 $309,355 Existing Constellation Energy Savings Lease $302,656 Proposed Equipment - Capital Lease $1,200,000 Proposed Equipment - Capital Lease $1,200,000 Proposed Equipment - Capital Lease $1,200,000Existing Fuel Trucks Lease $156,000 $156,000 Proposed Equipment - Capital Lease $1,200,000Proposed Equipment - Capital Lease $895,038 $895,038

TOTAL ALLOCATED LEASE $2,536,393 $2,536,393 TOTAL ALLOCATED LEASE $3,597,238 TOTAL ALLOCATED LEASE $4,494,582 TOTAL ALLOCATED LEASE $3,200,000 TOTAL ALLOCATED LEASE $3,200,000TOTAL $31,657,527 $8,990,298 TOTAL $18,509,738 TOTAL $24,373,082 TOTAL $22,423,175 TOTAL $12,488,671

5% Contingency $307,740 5% Contingency $925,487 5% Contingency $1,218,654 5% Contingency $1,121,159 5% Contingency $624,4342017 GRAND TOTAL $31,657,527 $9,298,038 2018 GRAND TOTAL $19,435,225 2019 GRAND TOTAL $25,591,736 2020 GRAND TOTAL $23,544,334 2021 GRAND TOTAL $13,113,105

5 YEAR GRAND TOTAL $90,982,438

PARKING/PASSENGER SERVICES

ALLOCATEDALLOCATED ALLOCATED

AVIATION SERVICES - FBO (ABE/XLL/N43)

ADMINISTRATION ADMINISTRATION ADMINISTRATION

INFORMATION TECHNOLOGY

GROUND HANDLING SERVICES GROUND HANDLING SERVICES GROUND HANDLING SERVICES GROUND HANDLING SERVICES

INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY

ADMINISTRATION

INFORMATION TECHNOLOGY

GROUND HANDLING SERVICES

AVIATION SERVICES - FBO (ABE/XLL/N43)

ALLOCATED

AVIATION SERVICES - FBO (ABE/XLL/N43) AVIATION SERVICES - FBO (ABE/XLL/N43) AVIATION SERVICES - FBO (ABE/XLL/N43)

ADMINISTRATION

PARKING/PASSENGER SERVICES

ALLOCATED

PARKING/PASSENGER SERVICES PARKING/PASSENGER SERVICES PARKING/PASSENGER SERVICES

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APPROVED CAPITAL IMPROVEMENT PROGRAMLEHIGH-NORTHAMPTON AIRPORT AUTHORITY

EXHIBIT B: 2018 PROJECTS - RATED NOVEMBER 28, 2017

Total Amount LNAA Share Type Rating

#LEHIGH VALLEY INTERNATIONAL AIRPORT

1 (State Grant) - Main Terminal Renovations - PH. I/II Design/Cons. $1,366,000 $341,500 CON 1.E2 FAA 101-2016 - Master Plan Update & Obstruction Study $480,000 $24,000 P&E 1.R3 FAA 102-2016 - Runway 6/24 Rehabilitation - PH.I Design $135,000 $6,750 CON 1.R S&S SAFETY & SECURITY 4 FAA 103-2017 - Acquire (2) Pieces of Snow Removal Equipment $1,234,239 $66,000 EQP 1.R R&R REGULATORY REQUIREMENTS 5 FAA 104-2017 - Runway 6/24 Rehabilitation - PH.II Design $1,540,000 $77,000 CON 1.R CON CONSTRUCTION 6 (2018 Grant) Runway 6/24 Rehablitiataion - PH.I Construction $1,000,000 $50,000 CON 1.R P&E PLANNING & ENVIRONMENTAL 7 (State Grant) - Hangar 11 Design/Construction $13,000,000 Grant/Loan CON 1.BC CAP CAPACITY ENHANCEMENT 8 Air Cargo Apron Expansion - AIP Restricted $700,000 $700,000 CON 1.BC EQP EQUIPMENT 9 LVIA Grant Projects Sub-Total $19,455,239 $1,265,250 O OTHER

1011 QUEEN CITY AIRPORT12 FAA 20-2016 - Stormwater Management Study $100,000 $5,000 P&E 1.R 1.E EMERGENCY13 FAA 21-2017 - Obstruction Removal EA $88,700 $4,435 P&E 1.R 1.BC BUSINESS CRITICAL/STRATEGIC14 FAA 22-2017 - Master Plan Update $163,700 $8,185 P&E 1.R 1.R REGULATORY15 Queen City Grant Projects Sub-Total $352,400 $17,620 2 HIGH16 3 MEDIUM17 BRADEN AIRPARK 4 LOW18 (State Grant) New Terminal Building - PH.I Design/Construction $325,000 $162,500 CON 1.R19 Braden Airpark Grant Projects Sub-Total $325,000 $162,50020 TOTAL FOR GRANT PROJECTS $20,132,639 $1,445,37021 MAJOR NON-GRANT PROJECTS22 Renovate Terminal/FBO/XLL Bathrooms $300,000 $300,000 S&S/R&R 1.BC23 Parking Lot Rehabilitation (pavement/booth/equipment) - PH. II $190,000 $190,000 S&S/R&R 1.BC24 TSA/Wyle Roof Repairs $813,560 $600,000 CON 1.R25 Tunnel Repairs $720,000 $566,000 CON 1.R26 Upgrade/Replace Hangar 7 Sprinkler System - PH. II $844,000 $844,000 S&S/R&R 1.R23 ABE General Aviation Pavement Rehabiliation/Repairs - PH.I $500,000 $500,000 CON 227 Office Renovations/Relocation - Design & Construction $220,000 $220,000 CON 228 Misc. Landside Pavement Repairs/Rehabilitation & Crack Sealing $400,000 $400,000 CON 229 Relocate Telephone & Fiber Optic Systems - Demarcation $150,000 Lease Item CON 230 TOTAL MAJOR NON-GRANT PROJECTS $4,137,560 $3,620,00031 OPERATIONS & SAFETY32 ARFF33 Acquire SCBA Bottles $10,400 Lease Item S&S 1.R34 Renovate ARFF Lounge & Hall $22,000 $22,000 CON 435 ARFF Sub-Total $32,400 $22,00037 Operations & Safety Administrative38 Renovate Operations Officer Office $20,000 $20,000 CON 339 Renovate Reception Area $10,000 $10,000 CON 340 Operations & Safety Administrative Sub-Total $30,000 $30,00042 Operations Center43 Operations Center Sub-Total $045 Operations46 Acquire Operations Vehicle (Pickup) $45,000 Lease Item EQP 247 Acquire Operations Vehicle (SUV) $50,000 Lease Item EQP 348 Acquire CFME $75,000 Lease Item EQP 349 Acquire 4x4 Utility Vehicle $25,000 Lease Item EQP 350 Operations Sub-Total $195,000 $052 Police53 Acquire Weapons/Safety Gear (Witmer Public Safety Group) $7,300 $7,300 EQP 1.R54 Acquire Tasers (AXON) $6,500 $6,500 EQP 1.R55 Acquire F150 Police Vehicle $46,000 Lease Item EQP 256 Renovate Station Work Area $7,500 $7,500 CON 357 Weapons Cache (Duty Packages) $7,500 $7,500 EQP 358 Police Sub-Total $74,800 $28,80060 Airside - Maintenance61 Replace ABE Rotating Beacon $150,000 Lease Item EQP 1.E62 Concrete ramp repairs-H7,H8,Main Terminal $136,735 $136,735 CON 1.E63 Replace Maintenance Fuel Farm Piping/Fuel Management System $30,000 $30,000 EQP 1.R64 Acquire VMAG - Gate 8 $50,000 Lease Item S&S 265 Acquire Gate & Operator - Gate 24 $20,000 Lease Item S&S 266 Acquire Toro 72’’ zero turn mower $12,500 Lease Item EQP 267 Acquire Air Compressor $25,000 Lease Item EQP 268 Replace Electrictian Truck #46 truck bed $8,500 Lease Item EQP 269 Jetbridge 3 Removal $50,000 $50,000 S&S 270 Acquire Mechanics Truck $45,000 Lease Item EQP 371 Acquire EZ Liner Paint Machine $85,000 Lease Item EQP 372 Acquire Graco Riding Paint Machine $23,000 Lease Item S&S 373 Acquire Forklift $28,000 Lease Item S&S 374 Acquire Tires for CAT Loader #70 $8,000 Lease Item S&S 375 Airfield Sub-Total $671,735 $216,73577 Landside/Terminal - Maintenance78 Passenger Boarding Bridge Refurbishment/Replacement $250,000 Lease Item EQP 279 Terminal Brick Repointing $60,000 $60,000 CON 280 Replace HVAC - Old Departure $80,000 Lease Item EQP 281 New Carpet for Terminal Areas - PH.II (Baggage Claim) $60,000 Lease Item CON 282 Replace Air Handler Unit 4&5 $100,000 Lease Item EQP 2

FAA & STATE GRANT PROJECTS2

2018 Capital Improvements

LNAA CASH/RESOURCES$6,400,000

Project Type

Rating

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Total Amount LNAA Share Type Rating2018 Capital Improvements83 Replace Main Terminal Vestibule Doors $18,000 Lease Item EQP 384 3rd Floor Lighting Replacement $10,000 $10,000 EQP/CON 385 Acquire Floor Extractor - Wiley Custodial $18,000 Lease Item EQP 3 S&S SAFETY & SECURITY 86 Acquire Autoscrubber - Custodial $5,000 Lease Item EQP 3 R&R REGULATORY REQUIREMENTS 87 Replace Baggage Makeup Doors (2) $20,000 Lease Item EQP 3 CON CONSTRUCTION 88 Acquire new Terminal Signage $30,000 Lease Item EQP 3 P&E PLANNING & ENVIRONMENTAL 89 Rehabilitate Main Terminal Generator $50,000 Lease Item EQP 3 CAP CAPACITY ENHANCEMENT 90 Acquire HVAC Technician Van $36,000 Lease Item EQP 3 EQP EQUIPMENT 91 Acquire Painters Van $36,000 Lease Item EQP 3 O OTHER 92 Acquire Equipment Trailer $20,000 Lease Item EQP 393 Terminal Re-Painting $250,000 $250,000 CON 494 Terminal Sub-Total $1,043,000 $320,00095 1.E EMERGENCY96 Parking and Roadways - Maintenance 1.BC BUSINESS CRITICAL/STRATEGIC97 Repair Upper Roadway Stormwater Inlets $30,000 $30,000 CON 2 1.R REGULATORY98 Acquire Salt Storage Bin $80,000 Lease Item EQP 3 2 HIGH99 Acquire Roadway Signage $250,000 Lease Item EQP 3 3 MEDIUM

100 Parking and Roadways Sub-Total $360,000 $30,000 4 LOW102 Aviation Leased - Maintenance103 Replace Hangar 3 Rapid Air Heating Unit $150,000 Lease Item CON 1.E104 Replace Hangar 9/ARFF Boiler $321,000 $280,000 CON 1.R105 T-Hangar Roof Repairs $80,000 $80,000 CON 2106 Replace Hangar 8 Gutters $16,000 $16,000 CON 3107 Aviation Leased Sub-Total $567,000 $376,000109 Non-Aviation Leased - Maintenance110 Miscellaneous Structures Demolition - PH. II $100,000 $100,000 CON 2111 Non-Aviation Leased Sub-Total $100,000 $100,000112 TOTAL OPERATIONS AND SAFETY $3,073,935 $1,123,535113 AVIATION SERVICES - FBO (ABE/XLL/N43)115 Acquire De-Icing Truck $300,000 Lease Item EQP 1.E114 XLL Airport Sign $90,000 Lease Item EQP 1.BC116 N43 Fuel Farm Repairs $15,000 $15,000 EQP 1.R117 ABE Fuel Farm Painting $30,000 $30,000 R&R 1.R118 Hangar 7 Renovations - PH.II $20,000 $20,000 CON 2119 XLL Lobby and Facility Upgrades - PH.II $20,000 $20,000 CON/EQP 2120 Acquire Aircraft Tug - XLL $50,000 Lease Item EQP 2121 Replace Hangar 7 Furniture/Amenities $10,000 $10,000 EQP 2122 Acquire GPU $58,000 Lease Item EQP 2123 Acquire Pickup w/Plow (2) $90,000 Lease Item EQP 2124 Equipment Storage Building - XLL $60,000 $60,000 CON/EQP 3125 TOTAL AVIATION SERVICES - FBO $743,000 $155,000126 GROUND HANDLING SERVICES127 Acquire Baggage Carts (4) $21,000 Lease Item EQP 2128 Acquire Covered Pushback Tractor (2) $108,000 Lease Item EQP 2129 Lav Truck $60,000 Lease Item EQP 2130 Acquire Pickup w/Plow $45,000 Lease Item EQP 2131 TOTAL GROUND HANDLING $234,000132 INFORMATION TECHNOLOGY133 Upgrade Closed Circuit TV (CCTV) Cameras $50,000 Lease Item S&S 2134 Cardkey Upgrades $40,000 Lease Item EQP 2135 Network Upgrades $160,000 Lease Item EQP 2136 Replace Desktop Computers & Laptops $50,000 Lease Item EQP 2137 Software Updates $40,000 $40,000 O 2138 FIDS Screen Replacements $85,000 Lease Item EQP 2139 Server Replacement $60,000 Lease Item EQP 3140 Acquire IT Work Van $35,000 Lease Item EQP 3141 TOTAL INFORMATION TECHNOLOGY $520,000 $40,000142 ADMINISTRATION143 Document Management System/Backscanning $150,000 Lease Item O 2144 Advertising Equipment $20,000 $20,000 EQP 2145 Office Furniture Replacement $30,000 $30,000 EQP 3146 Terminal Amenities $20,000 $20,000 EQP 3147 TOTAL ADMINISTRATION $220,000 $70,000148 PARKING/PASSENGER SERVICES149 Acquire Short-Bus $60,000 Lease Item EQP 3150 TOTAL PARKING/PASSENGER SERVICES $60,000 $0151 ALLOCATED152 Existing Equipment - Capital Lease3 $1,176,000 $1,176,000 O 1.R153 Existing Constellation Energy Savings Lease3 $309,355 $309,355 O 1.R154 Existing Fuel Trucks Lease $156,000 $156,000 O 1.R155 Proposed Equipment - Capital Lease $895,038 $895,038 O 2156 TOTAL ALLOCATED LEASE $2,536,393 $2,536,393

Project Type

Rating

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Total Amount LNAA Share Type Rating2018 Capital Improvements

157 TOTAL $31,657,527 $8,990,298158 1.E: EMERGENCY SUBTOTAL $2,102,735 $478,235159 1.BC: BUSINESS CRITICAL $14,280,000 $1,190,000160 1.R: REGULATORY SUBTOTAL $9,184,754 $4,424,025158 5% CONTINGENCY $307,740161 2: HIGH SUBTOTAL $3,759,038 $2,445,038162 3: MEDIUM SUBTOTAL $1,238,000 $181,000163 4: LOW SUBTOTAL $272,000 $272,000

$6,400,000

NOTES: 1. The difference between Total Amount and LNAA Share is from FAA, PennDOT, CFC, PFC, and any other funding source required to complete the project. 2. Grant Project Costs Represent the Anticipated LNAA Matching Share Needed during the Fiscal Year. 3. Existing Capital Leases total $1,641,355. 4. To manage Cash Flow, all projects are fiscally constrained to ensure the monthly Cash Flow can support ongoing projects and upcoming invoices/contractor pay requests. 5. Projects listed with a PH (phase) are multi-phased, multi-year projects that may be ongoing into 2019. Total Project cost is depicted and updated on the 5-year CIP. 6. All Grant/Major construction projects depict the full program cost; which includes consultant fees, design, construction, and construction management. Other tasks and costs can be refined when determined to require consultant services. 7. A project is deemed complete when all the associated equipment/construction items have been purchased and are placed in service.

* Specific equipment needs to be leased under the Financial Lease Programs are shown; Equipment can be interchanged between purchase and a lease as necessary to manage Cash Flow.

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lehigh-northampton airport authority...nov 28, 2017 · 3.9 percent higher than the 2017 budget....

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