Airport Master Plan 2012 - City of Waterville

8.6 Airport Historical Financial Performance and Recommendations
Historical financial data represents the financial history and performance of the Airport and in most cases,
gives some indication of expense and revenue trends at the Airport. Tables 8.7 through 8.9 show the
historical expenses and revenues provided by the City of Waterville for the years 2006 through 2010.
Tables 8.10 and 8.11 summarize the financial performance of the Airport over that time. As shown, the
Airport’s expenses have exceeded its revenues for each year reported.
Typical of many publically owned and operated General Aviation airports, non-operating revenues,
generated through real estate taxes in the City’s general fund are used to supplement total Airport
revenues. However, since it is the objective of the Airport to become financially self sufficient, for the
purpose of this financial assessment, supplemental revenues provided through the General fund have been
omitted.
In most cases, a historical analysis of airport financial data gives some indication of trends which can be
used to make financial projections. As documented in various forms throughout this master plan, the
characteristics of the operation of the Airport since 2007 include variables associated with FBO
operations, and Airport Management that have been inconsistent. Therefore, since in recent history,
variables used to comprise the financial data at the Airport have changed, projections of financial data
using established trends cannot be made.
Although historical financial trends cannot be used to determine reliable financial forecasts for the
Airport, this assessment still looks to identify opportunities within the Airport’s operating expenses and
revenue generating capabilities where the Airport can mitigate operating costs while optimizing revenues.
As a result of this assessment, this chapter provides recommendations that have both quantitative and
qualitative considerations.
1) Labor
Labor expenses for the operation of both the Airport and the FBO include staff salaries, hourly
wages, overtime, and employee benefits, such as healthcare. Although trends concerning labor
costs could not be established, the changes in management structure at the Airport, as well as the
use of part-time rather than full time laborers have caused labor costs to fluctuate since 2006
when labor costs totaled approximately $61,000. In 2007, these costs increased roughly $26,000
to around $88,000, and remained relatively stable until 2009 when they dropped to about
$70,000. In 2010, total labor costs were about $85,000, over $38,000 of which was attributed to
operating the FBO.
2) Utilities
Costs associated with the Airport include items such as electricity and heating fuel for both the
maintenance of the Airport and the FBO separately. Historically, the costs for utilities have
fluctuated. In 2006, these combined costs totaled approximately $26,000 and in 2010 they were
about $18,500. Given the Airport’s characteristics and geographic location, it is normal for these
costs to vary based on the weather for any particular year, however, the average annual costs of
utilities at the Airport over the five year period (2006-2010) is $22,700. Utility costs (including
heating fuel) directly related to the operation of the FBO averaged approximately $12,000
annually over the same period.
The City of Waterville Maine
Implementation and Financial Plan – Page 8-9
Airport Solutions Group, LLC & The Louis Berger Group, Inc. December 2011